GlobeNewswire – Page 618

MIL-OSI: CrossFirst Bankshares, Inc. Reports Record Fourth Quarter and Record Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

LEAWOOD, Kan., Jan. 28, 2025 (GLOBE NEWSWIRE) — CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for CrossFirst Bank, today reported operating results for the fourth quarter and full-year ended December 31, 2024.

The fourth quarter and full-year earnings release can be viewed here: https://investors.crossfirstbankshares.com/financials/quarterly-reports

Investor Contact
Mike Daley | CrossFirst Bankshares, Inc.
913.754.9707 | mike.daley@crossfirstbank.com

About CrossFirst Bankshares, Inc.

CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned subsidiary, CrossFirst Bank, a full-service financial institution that offers products and services to businesses, professionals, individuals, and families. CrossFirst Bank, headquartered in Leawood, Kansas, has locations in Kansas, Missouri, Oklahoma, Texas, Arizona, Colorado, and New Mexico.

The MIL Network –

January 29, 2025

MIL-OSI: Magnite Partners With Sky New Zealand to Power Programmatic Advertising on Sky Sport Now

Source: GlobeNewswire (MIL-OSI)

AUCKLAND, New Zealand, Jan. 28, 2025 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, is working with Sky New Zealand to power programmatic advertising on Sky’s premium live and on-demand sports streaming platform, Sky Sport Now. Following the recent launch of digital advertising on Sky Sport Now, buyers will have programmatic access to the platform’s high-value live sports inventory for the first time through Magnite.

With 51.3 million annual streams* and content across an average of 35 sporting codes, Sky Sport Now offers advertisers a golden opportunity to engage audiences with data-driven targeting and optimised campaigns, maintained within a premium environment. Magnite’s cutting-edge streaming technology will help Sky recognise the value of their content in a way that respects the viewer experience, while making it easier for buyers to access scalable, premium inventory and reach engaged audiences.

Lauren Quaintance, Sky New Zealand’s Chief Media and Data Officer, says: “The launch of digital advertising on Sky Sport Now unlocks Sky’s highly engaged live sport audiences on this platform for the first time. With all the live sport that Kiwis love in one place and scalable audiences now available to local digital advertisers, we’re experiencing strong interest from clients eager to get involved, and we’re incredibly grateful for the support from agencies and advertisers.

“Aligning with the right partners to ensure we can package this inventory efficiently, while delivering a premium viewing experience has been critical, and Magnite has proven to be a highly effective partner. We’re excited to continue working with them to facilitate programmatic access to Sky’s highly engaged live sport audiences for the first time.”

Yael Milbank, Managing Director, ANZ at Magnite, says: “Sky New Zealand has expanded their offering to meet the consumer appetite for more accessible live sports content, and we’re pleased to be working with them to unlock new opportunities for advertisers to reach highly engaged sports fans. We look forward to helping drive continued success as they leverage our leading streaming technology to enable programmatic activation of premium live sports inventory on Sky Sport Now.”

About Sky New Zealand
Sky is New Zealand’s leading entertainment company and home to the best and broadest choice in live sport, movies, shows, documentaries and news. Sky offers a suite of viewing choices to suit every New Zealander, whether it’s through the Sky Box and companion app Sky Go for premium direct-to-home customers, its streaming services Sky Sport Now for sport and Neon for movies and entertainment, or free-to-air on Sky Open.

About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

Media Contact:
Einsteinz Communications
carlotta@einsteinz.com.au

_____________________

*SOURCE 1: NIELSEN CMI, Q1 2023 – Q4 2023, AP15+, ONLINE VIDEO/TV SERVICES USED L7D.

The MIL Network –

January 29, 2025

MIL-OSI: Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, Declaration of Quarterly Cash Dividend and Annual Meeting Date

Source: GlobeNewswire (MIL-OSI)

ISELIN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $48.5 million, or $0.37 per basic and diluted share for the three months ended December 31, 2024, compared to $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024 and $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023. For the year ended December 31, 2024, net income totaled $115.5 million, or $1.05 per basic and diluted share, compared to $128.4 million, or $1.72 per basic and $1.71 per diluted share, for the year ended December 31, 2023.

The Company’s earnings for the three months and year ended December 31, 2024 reflect the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments. The merger with Lakeland significantly impacted provisions for credit losses in 2024 due to the initial Current Expected Credit Loss (“CECL”) provisions recorded on acquired loans in the second quarter. Transaction costs related to our merger with Lakeland totaled $20.2 million and $56.9 million, for the three months and year ended December 31, 2024, respectively, compared with transaction costs of $2.5 million and $7.8 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale of subordinated debt issued by Lakeland from the Provident investment portfolio, during the second quarter of 2024.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident had an eventful 2024 marked by solid financial performance and defined by the completion of our merger with Lakeland. We have maintained excellent asset quality, grown our deposits, and benefited from our expanding fee-based businesses. With core systems conversion and integration now completed, we look forward to further improving our performance across all business lines in 2025.”

Performance Highlights for the Fourth Quarter of 2024

Adjusted for transaction costs related to the merger with Lakeland, net of tax, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity⁽¹⁾ were 1.05%, 9.53% and 15.39% for the quarter ended December 31, 2024, compared to 0.95%, 8.62% and 14.53% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity⁽²⁾ were 1.53%, 13.91% and 20.31% for the quarter ended December 31, 2024, compared to 1.48%, 13.48% and 19.77% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
Net interest margin decreased three basis points to 3.28% for the quarter ended December 31, 2024, from 3.31% for the trailing quarter, mainly due to a reduction in net accretion of purchase accounting adjustments related to the Lakeland merger. However, the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased four basis points from the trailing quarter to 2.85%. The average yield on total loans decreased 22 basis points to 5.99% for the quarter ended December 31, 2024, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 11 basis points to 2.25% for the quarter ended December 31, 2024.
Wealth management and insurance agency income increased 12% and 19%, respectively, versus the same period in 2023.
Asset quality improved in the quarter, as non-performing loans to total loans as of December 31, 2024 decreased to 0.39% from 0.47% as of September 30, 2024, while non-performing assets to total assets as of December 31, 2024 decreased to 0.34% from 0.41% as of September 30, 2024.
The Company recorded a $7.8 million provision for credit losses on loans for the quarter ended December 31, 2024, compared to a $9.6 million provision for the trailing quarter. The decrease in the provision for credit losses on loans for the quarter was primarily attributable to the reclassification of $151.3 million to the held for sale portfolio, partially offset by modest deterioration in the economic forecast within our CECL model.
Total deposits increased $247.6 million to $18.62 billion as of December 31, 2024 compared to September 30, 2024.
In December of 2024, $151.3 million of the Bank’s commercial loan portfolio was reclassified from loans held for investment into the held for sale portfolio as a result of a decision to exit the non-relationship equipment lease financing business.
As of December 31, 2024, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.79 billion, with a weighted average interest rate of 6.91%.
At December 31, 2024, CRE loans related to office properties totaled $884.1 million, compared to $921.1 million at September 30, 2024. CRE loans secured by office properties constitutes 4.6% of total loans and have an average loan size of $1.9 million, with seven relationships greater than $10.0 million. There were four loans totaling $9.1 million on non-accrual as of December 31, 2024.
As of December 31, 2024, multi-family CRE loans secured by New York City properties totaled $244.5 million, compared to $226.6 million as of September 30, 2024. This portfolio constitutes only 1.3% of total loans and has an average loan size of $2.8 million. Loans that are collateralized by rent stabilized apartments comprise less than 0.80% of the total loan portfolio and are all performing.

Declaration of Quarterly Dividend

The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on February 28, 2025, to stockholders of record as of the close of business on February 14, 2025.

Annual Meeting Date Set

The Annual Meeting of Stockholders will be held on April 24, 2025 at 10:00 a.m. Eastern Time as a virtual meeting. February 28, 2025 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.

Results of Operations

Three months ended December 31, 2024 compared to the three months ended September 30, 2024

For the three months ended December 31, 2024, net income was $48.5 million, or $0.37 per basic and diluted share, compared to net income of $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income decreased $2.0 million to $181.7 million for the three months ended December 31, 2024, from $183.7 million for the trailing quarter. The decrease in net interest income was primarily due to a decrease in net accretion of purchase accounting adjustments in the loan portfolio related to the Lakeland merger.

The Company’s net interest margin decreased three basis points to 3.28% for the quarter ended December 31, 2024, from 3.31% for the trailing quarter. The average yield on interest-earning assets for the quarter ended December 31, 2024 decreased 18 basis points to 5.66%, compared to the trailing quarter. The average cost of interest-bearing liabilities for the quarter ended December 31, 2024 decreased 16 basis points to 3.03%, compared to the trailing quarter. The average cost of interest-bearing deposits for the quarter ended December 31, 2024 decreased 15 basis points to 2.81%, compared to 2.96% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.25% for the quarter ended December 31, 2024, compared to 2.36% for the trailing quarter. The average cost of borrowed funds for the quarter ended December 31, 2024 was 3.64%, compared to 3.73% for the quarter ended September 30, 2024. The net accretion of purchase accounting adjustments contributed 43 basis points to the net interest margin for the quarter ended December 31, 2024, compared with 50 basis points in the trailing quarter. The reduction in purchase accounting accretion was largely due to the prepayment of certain loans that resulted in accelerated amortization of acquisition premiums and a decrease in accelerated accretion related to prepayments of loans with acquisition discounts.

Provision for Credit Losses on Loans

For the quarter ended December 31, 2024, the Company recorded a $7.8 million provision for credit losses related to loans, compared with a provision for credit losses on loans of $9.6 million for the quarter ended September 30, 2024. The decrease in the provision for credit losses on loans for the quarter was primarily attributable to the reclassification of $151.3 million of commercial loans to the held for sale portfolio, partially offset by modest deterioration in the economic forecast within our CECL model for the current quarter as compared to the prior quarter. For the three months ended December 31, 2024, net charge-offs totaled $5.5 million, or an annualized 12 basis points of average loans, compared to net charge-offs of $6.8 million, or an annualized 14 basis points of average loans for the trailing quarter.

Non-Interest Income and Expense

For the three months ended December 31, 2024, non-interest income totaled $24.2 million, a decrease of $2.7 million, compared to the trailing quarter. Bank owned life insurance (“BOLI”) income decreased $2.0 million compared to the trailing quarter, to $2.3 million for the three months ended December 31, 2024, primarily due to a reduction in benefit claims. Insurance agency income decreased $342,000 to $3.3 million for the three months ended December 31, 2024, compared to $3.6 million for the trailing quarter, largely due to a seasonal decrease in business activity. Additionally, other income decreased $181,000 to $1.3 million for the three months ended December 31, 2024, compared to the trailing quarter, while fees and commissions decreased $129,000 to $9.7 million for the three months ended December 31, 2024, compared to the trailing quarter.

Non-interest expense totaled $134.3 million for the three months ended December 31, 2024, a decrease of $1.7 million, compared to $136.0 million for the trailing quarter. Compensation and benefits expense decreased $3.5 million to $59.9 million for the three months ended December 31, 2024, compared to $63.5 million for the trailing quarter mainly due to decreases in salary expense and payroll tax expense. Amortization of intangibles decreased $2.7 million to $9.5 million for the three months ended December 31, 2024 primarily due to a current quarter adjustment to the rate of core deposit intangible amortization related to Lakeland, as a result of lower projected attrition on core deposits. FDIC insurance decreased $769,000 to $3.4 million for the three months ended December 31, 2024, compared to $4.2 million for the trailing quarter, primarily due to a decreases in the assessment rate and average assets. Additionally, data processing expense decreased $600,000 to $9.9 million for the three months ended December 31, 2024, compared to the trailing quarter, largely due to a decrease in core system expenses. Partially offsetting these decreases, merger-related expenses increased $4.6 million to $20.2 million for the three months ended December 31, 2024, compared to the trailing quarter, while other operating expenses increased $1.6 million to $17.4 million for the three months ended December 31, 2024, compared to the trailing quarter largely due to a $1.4 million charge for contingent litigation reserves.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁴⁾ was 1.90% for the quarter ended December 31, 2024, compared to 1.98% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁵⁾ was 55.43% for the three months ended December 31, 2024, compared to 57.20% for the trailing quarter.

Income Tax Expense

For the three months ended December 31, 2024, the Company’s income tax expense was $14.2 million with an effective tax rate of 22.6%, compared with income tax expense of $18.9 million with an effective tax rate of 28.9% for the trailing quarter. The decrease in tax expense and the effective tax rate for the three months ended December 31, 2024, compared with the trailing quarter was largely due to a $4.2 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

Three months ended December 31, 2024 compared to the three months ended December 31, 2023

For the three months ended December 31, 2024, net income was $48.5 million, or $0.37 per basic and diluted share, compared to net income of $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023. The Company’s earnings for the quarter ended December 31, 2024 reflected the impact of the May 16, 2024 merger with Lakeland. The results of operations included transaction costs related to the merger with Lakeland totaling $20.2 million and $2.5 million for the three months ended December 31, 2024 and 2023, respectively.

Net Interest Income and Net Interest Margin

Net interest income increased $85.9 million to $181.7 million for the three months ended December 31, 2024, from $95.8 million for same period in 2023. Net interest income for the quarter ended December 31, 2024 compared to the same period in 2023 was favorably impacted by the net assets acquired from Lakeland, combined with favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by unfavorable repricing of deposits.

The Company’s net interest margin increased 36 basis points to 3.28% for the quarter ended December 31, 2024, from 2.92% for the same period last year. The average yield on interest-earning assets for the quarter ended December 31, 2024 increased 62 basis points to 5.66%, compared to 5.04% for the quarter ended December 31, 2023. The average cost of interest-bearing liabilities increased 32 basis points for the quarter ended December 31, 2024 to 3.03%, compared to 2.71% for the fourth quarter of 2023. The average cost of interest-bearing deposits for the quarter ended December 31, 2024 was 2.81%, compared to 2.47% for the same period last year. The average cost of total deposits, including non-interest-bearing deposits, was 2.25% for the quarter ended December 31, 2024, compared with 1.95% for the quarter ended December 31, 2023. The average cost of borrowed funds for the quarter ended December 31, 2024 was 3.64%, compared to 3.71% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended December 31, 2024, the Company recorded a $7.8 million provision for credit losses related to loans, compared with a $500,000 provision for credit losses on loans for the quarter ended December 31, 2023. The increase in the provision for credit losses on loans was largely a function of the period-over-period deterioration in the economic forecast and an increase in loans from the Lakeland acquisition.

Non-Interest Income and Expense

Non-interest income totaled $24.2 million for the quarter ended December 31, 2024, an increase of $5.2 million, compared to the same period in 2023. Fee income increased $3.6 million to $9.7 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily resulting from the Lakeland merger. Wealth management income increased $812,000 to $7.7 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to an increase in the average market value of assets under management, while BOLI income increased $617,000 to $2.3 million for the three months ended December 31, 2024, compared to the same period in 2023 largely due to an increase in income related to the addition of Lakeland’s BOLI. Insurance agency income increased $530,000 to $3.3 million, for the three months ended December 31, 2024, compared to the same period in 2023, largely due to strong retention revenue and new business activity. Partially offsetting these increases to non-interest income, other income decreased $330,000 to $1.3 million for the three months ended December 31, 2024, compared to the quarter ended December 31, 2023, primarily due to a decrease in net gains on the sale of SBA loans.

Non-interest expense totaled $134.3 million for the three months ended December 31, 2024, an increase of $58.5 million, compared to $75.9 million for the three months ended December 31, 2023. Compensation and benefits expense increased $21.2 million to $59.9 million for three months ended December 31, 2024, compared to $38.8 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expense increased $17.7 million to $20.2 million for the three months ended December 31, 2024, compared to the same period in 2023. Amortization of intangibles increased $8.8 million to $9.5 million for the three months ended December 31, 2024, compared to $721,000 for the same period in 2023, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expenses increased $4.8 million to $12.6 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to an increase in depreciation and maintenance expenses related to the addition of Lakeland. Data processing expense increased $3.4 million to $9.9 million for the three months ended December 31, 2024, compared to the same period in 2023, largely due to additional software and hardware expenses related to the addition of Lakeland, while other operating expenses increased $1.7 million to $17.4 million for the three months ended December 31, 2024, compared to the same period in 2023, largely due to an increase in professional service expenses.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁴⁾ was 1.90% for the quarter ended December 31, 2024, compared to 1.98% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁵⁾ was 55.43% for the three months ended December 31, 2024 compared to 61.32% for the same respective period in 2023.

Income Tax Expense

For the three months ended December 31, 2024, the Company’s income tax expense was $14.2 million with an effective tax rate of 22.6%, compared with $12.5 million with an effective tax rate of 31.3% for the three months ended December 31, 2023. The increase in tax expense for the three months ended December 31, 2024, compared with the three months ended December 31, 2023, was primarily due to an increase in taxable income, which was partially offset by a $4.2 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024. The decrease in the effective tax rate for the three months ended December 31, 2024, compared with the three months ended December 31, 2023 was primarily due to the aforementioned $4.2 million tax benefit related to the revaluation of deferred tax assets.

Year ended December 31, 2024 compared to the year ended December 31, 2023

For the year ended December 31, 2024, net income totaled $115.5 million, or $1.05 per basic and diluted share, compared to net income of $128.4 million, or $1.71 per basic and diluted share, for the year ended December 31, 2023.

Net Interest Income and Net Interest Margin

Net interest income increased $201.2 million to $600.6 million for the year ended December 31, 2024, from $399.5 million for 2023. Net interest income for the year ended December 31, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans and higher market rates on new loan originations, partially offset by the unfavorable repricing of both deposits and borrowings.

For the year ended December 31, 2024, the net interest margin increased 10 basis points to 3.26%, compared to 3.16% for 2023. The weighted average yield on interest earning assets increased 81 basis points to 5.68% for the year ended December 31, 2024, compared to 4.87% for 2023, while the weighted average cost of interest-bearing liabilities increased 81 basis points to 3.05% for the year ended December 31, 2024, compared to 2.24% last year. The average cost of interest-bearing deposits increased 84 basis points to 2.83% for the year ended December 31, 2024, compared to 1.99% in the prior year. Average non-interest-bearing demand deposits increased $792.0 million to $3.12 billion for the year ended December 31, 2024, compared with $2.33 billion for 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.26% for the year ended December 31, 2024, compared with 1.54% for 2023. The average cost of borrowings for the year ended December 31, 2024 was 3.71%, compared to 3.41% in the prior year.

Provision for Credit Losses on Loans

For the year ended December 31, 2024, the Company recorded an $83.6 million provision for credit losses related to loans, compared with a provision for credit losses of $28.2 million for 2023. The increased provision for credit losses on loans for the year ended December 31, 2024 was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by some economic forecast improvement over the current twelve-month period within our CECL model, compared to last year.

Non-Interest Income and Expense

For the year ended December 31, 2024, non-interest income totaled $94.1 million, an increase of $14.3 million, compared to 2023. Fee income increased $9.7 million to $34.1 million for the year ended December 31, 2024, compared to 2023, primarily due to the addition of Lakeland. BOLI income increased $5.2 million to $11.7 million for the year ended December 31, 2024, compared to 2023, primarily due to an increase in benefit claims, combined with an increase in income related to the addition of Lakeland’s BOLI, while wealth management income increased $2.9 million to $30.5 million for the year ended December 31, 2024, compared to 2023, mainly due to an increase in the average market value of assets under management during the period. Additionally, insurance agency income increased $2.3 million to $16.2 million for the year ended December 31, 2024, compared to $13.9 million for 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the year ended December 31, 2024, primarily due to a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland. Additionally, other income decreased $2.8 million to $4.5 million for the year ended December 31, 2024, compared to $7.3 million for 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans in the current year.

Non-interest expense totaled $457.5 million for the year ended December 31, 2024, an increase of $182.2 million, compared to $275.3 million for 2023. Compensation and benefits expense increased $69.8 million to $218.3 million for the year ended December 31, 2024, compared to $148.5 million for 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Merger-related expenses increased $49.0 million to $56.9 million for the year ended December 31, 2024, compared to $7.8 million for 2023. Amortization of intangibles increased $26.0 million to $28.9 million for the year ended December 31, 2024, compared to $3.0 million for 2023, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expense increased $12.7 million to $45.0 million for the year ended December 31, 2024, compared to 2023, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland, while data processing expense increased $12.6 million to $35.6 million for the year ended December 31, 2024, compared to $23.0 million for 2023, primarily due to additional software and hardware expenses related to the addition of Lakeland. Other operating expenses increased $7.3 million to $54.7 million for the year ended December 31, 2024, compared to $47.4 million for 2023, primarily due to increases in consulting and other professional service expenses, while FDIC insurance increased $4.4 million to $13.0 million for the year ended December 31, 2024, primarily due to the addition of Lakeland.

Income Tax Expense

For the year ended December 31, 2024, the Company’s income tax expense was $34.1 million with an effective tax rate of 22.8%, compared with $47.4 million with an effective tax rate of 27.0% for 2023. The decrease in tax expense for the year ended December 31, 2024, compared with last year was largely due to a $10.0 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger.

Asset Quality

The Company’s total non-performing loans at December 31, 2024 were $72.1 million, or 0.39% of total loans, compared to $89.9 million or 0.47% of total loans at September 30, 2024 and $49.6 million, or 0.46% of total loans at December 31, 2023. The $17.9 million decrease in non-performing loans at December 31, 2024, compared to the trailing quarter, consisted of a $24.3 million decrease in non-performing commercial loans and a $676,000 decrease in non-performing residential loans, partially offset by a $6.9 million increase in non-performing commercial mortgage loans and a $223,000 increase in non-performing consumer loans. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million, compared with impaired loans totaling $74.0 million with related specific reserves of $7.2 million as of September 30, 2024. As of December 31, 2023, impaired loans totaled $42.3 million with related specific reserves of $2.9 million.

At December 31, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.04% of total loans, compared to 1.02% and 0.99% at September 30, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $88.0 million to $193.4 million at December 31, 2024, from $107.2 million at December 31, 2023. The increase in the allowance for credit losses on loans at December 31, 2024 compared to December 31, 2023 was due to an $83.6 million provision for credit losses on loans, which included an initial CECL provision of $60.1 million on loans acquired from Lakeland, and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $14.6 million.

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

	December 31, 2024				September 30, 2024				December 31, 2023
	Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans
	(Dollars in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial mortgage loans	7	$	8,538		2	$	430		1	$	825
Multi-family mortgage loans	—		—		—		—		1		3,815
Construction loans	—		—		—		—		—		—
Residential mortgage loans	22		6,388		23		5,020		13		3,429
Total mortgage loans	29		14,926		25		5,450		15		8,069
Commercial loans	23		4,248		14		1,952		6		998
Consumer loans	47		3,152		53		4,073		31		875
Total 30 to 59 days past due	99	$	22,326		92	$	11,475		52	$	9,942

60 to 89 days past due:
Commercial mortgage loans	4	$	3,954		1	$	641		—	$	—
Multi-family mortgage loans	—		—		—		—		1		1,635
Construction loans	—		—		—		—		—		—
Residential mortgage loans	17		5,049		11		1,991		8		1,208
Total mortgage loans	21		9,003		12		2,632		9		2,843
Commercial loans	9		2,377		9		1,240		3		198
Consumer loans	15		856		10		606		5		275
Total 60 to 89 days past due	45		12,236		31		4,478		17		3,316
Total accruing past due loans	144	$	34,562		123	$	15,953		69	$	13,258

Non-accrual:
Commercial mortgage loans	17	$	20,883		17	$	13,969		7	$	5,151
Multi-family mortgage loans	6		7,498		6		7,578		1		744
Construction loans	2		13,246		2		13,151		1		771
Residential mortgage loans	23		4,535		24		5,211		7		853
Total mortgage loans	48		46,162		49		39,909		16		7,519
Commercial loans	65		24,243		69		48,592		26		41,487
Consumer loans	23		1,656		32		1,433		10		633
Total non-accrual loans	136	$	72,061		150	$	89,934		52	$	49,639

Non-performing loans to total loans			0.39	%			0.47	%			0.46	%
Allowance for loan losses to total non-performing loans			268.43	%			217.09	%			215.96	%
Allowance for loan losses to total loans			1.04	%			1.02	%			0.99	%

At December 31, 2024 and December 31, 2023, the Company held foreclosed assets of $9.5 million and $11.7 million, respectively. During the year ended December 31, 2024, there were four properties sold with an aggregate carrying value of $861,000 and one write-down of a foreclosed commercial property of $1.3 million. Foreclosed assets at December 31, 2024 consisted primarily of commercial real estate. Total non-performing assets at December 31, 2024 increased $20.2 million to $81.5 million, or 0.34% of total assets, from $61.3 million, or 0.43% of total assets at December 31, 2023.

Balance Sheet Summary

Total assets at December 31, 2024 were $24.05 billion, a $13.78 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.

The Company’s loans held for investment portfolio totaled $18.66 billion at December 31, 2024 and $10.87 billion at December 31, 2023. The loan portfolio consists of the following:

		December 31, 2024			September 30, 2024			December 31, 2023
		(Dollars in thousands)
Mortgage loans:
Commercial		$	7,228,078		$	7,342,456		$	4,512,411
Multi-family			3,382,933			3,226,918			1,812,500
Construction			823,503			873,509			653,246
Residential			2,014,844			2,032,671			1,164,956
	Total mortgage loans		13,449,358			13,475,554			8,143,113
Commercial loans			4,604,367			4,710,601			2,440,621
Consumer loans			613,819			623,709			299,164
	Total gross loans		18,667,544			18,809,864			10,882,898
Premiums on purchased loans			1,338			1,362			1,474
Net deferred fees and unearned discounts			(9,512	)		(16,617	)		(12,456	)
	Total loans	$	18,659,370		$	18,794,609		$	10,871,916

As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments. For the year ended December 31, 2024, the Company experienced net increases of $1.57 billion in multi-family loans, $2.16 billion in commercial loans and $2.72 billion in commercial mortgage loans, partially offset by net decreases of $170.3 million in construction loans and net decreases in residential mortgage and consumer loans of $849.9 million and $314.7 million, respectively. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio at December 31, 2024, compared to 86.5% at December 31, 2023.

For the year ended December 31, 2024, loan funding, including advances on lines of credit, totaled $4.73 billion, compared with $3.34 billion for the same period in 2023.

At December 31, 2024, the Company’s unfunded loan commitments totaled $2.73 billion, including commitments of $1.62 billion in commercial loans, $608.1 million in construction loans and $85.1 million in commercial mortgage loans. Unfunded loan commitments at September 30, 2024 and December 31, 2023 totaled $2.97 billion and $2.09 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.79 billion at December 31, 2024, compared to $1.98 billion at September 30, 2024 and $1.70 billion at December 31, 2023.

Total investment securities were $3.21 billion at December 31, 2024, a $2.26 billion increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.

Total deposits increased $10.56 billion during the year ended December 31, 2024, to $18.62 billion. Total savings and demand deposit accounts increased $6.26 billion to $15.46 billion at December 31, 2024, while total time deposits increased $2.07 billion to $3.17 billion at December 31, 2024. The increase in savings and demand deposits was largely attributable to a $3.13 billion increase in interest-bearing demand deposits, a $1.59 billion increase in non-interest-bearing demand deposits, a $1.04 billion increase in money market deposits and a $504.0 million increase in savings deposits. The increase in time deposits consisted of a $1.98 billion increase in retail time deposits and a $91.1 million increase in brokered time deposits.

Borrowed funds increased $1.34 billion during the year ended December 31, 2024, to $2.02 billion. The increase in borrowings was largely due to the addition of Lakeland. Borrowed funds represented 8.4% of total assets at December 31, 2024, an decrease from 13.9% at December 31, 2023.

Stockholders’ equity increased $1.60 billion during the year ended December 31, 2024, to $2.60 billion, primarily due to common stock issued for the purchase of Lakeland, net income earned for the period and a slight improvement in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the year ended December 31, 2024, common stock repurchases totaled 89,569 shares at an average cost of $14.90 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. At December 31, 2024, approximately 3.1 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share⁽⁶⁾ at December 31, 2024 were $19.93 and $13.66, respectively, compared with $22.38 and $16.32, respectively, at December 31, 2023.

About the Company

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

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Wednesday, January 29, 2025 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “project,” “intend,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, the ability to complete, or any delays in completing, the pending merger between the Company and Lakeland; any failure to realize the anticipated benefits of the transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events; potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.

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

Footnotes

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

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)

	At or for the Three months ended									At or for the Year ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Statement of Income
Net interest income	$	181,737		$	183,701		$	95,788		$	600,614		$	399,454
Provision for credit losses		8,880			9,299			(863	)		87,564			28,168
Non-interest income		24,175			26,855			18,968			94,113			79,829
Non-interest expense		134,323			136,002			75,851			457,548			275,336
Income before income tax expense		62,709			65,255			39,768			149,615			175,779
Net income		48,524			46,405			27,312			115,525			128,398
Diluted earnings per share	$	0.37		$	0.36		$	0.36		$	1.05		$	1.71
Interest rate spread		2.63	%		2.65	%		2.33	%		2.63	%		2.63	%
Net interest margin		3.28	%		3.31	%		2.92	%		3.26	%		3.16	%

Profitability
Annualized return on average assets		0.81	%		0.76	%		0.77	%		0.57	%		0.92	%
Annualized adjusted return on average assets ⁽¹⁾		1.05	%		0.95	%		0.83	%		0.78	%		0.97	%
Annualized return on average equity		7.36	%		6.94	%		6.60	%		5.07	%		7.81	%
Annualized adjusted return on average equity ⁽¹⁾		9.53	%		8.62	%		7.10	%		6.95	%		8.22	%
Annualized return on average tangible equity ⁽³⁾		12.21	%		12.06	%		9.32	%		8.58	%		11.01	%
Annualized adjusted return on average tangible equity ⁽¹⁾		15.39	%		14.53	%		9.99	%		11.29	%		11.54	%
Annualized adjusted non-interest expense to average assets ⁽⁴⁾		1.90	%		1.98	%		1.98	%		1.97	%		1.90	%
Efficiency ratio ⁽⁴⁾		55.43	%		57.20	%		61.32	%		57.67	%		55.19	%

Asset Quality
Non-accrual loans				$	89,934					$	72,061		$	49,639
90+ and still accruing					—						—			—
Non-performing loans					88,061						72,061			49,639
Foreclosed assets					9,801						9,473			11,651
Non-performing assets					97,862						81,534			61,290
Non-performing loans to total loans					0.47	%					0.39	%		0.46	%
Non-performing assets to total assets					0.41	%					0.34	%		0.43	%
Allowance for loan losses				$	191,175					$	193,432		$	107,200
Allowance for loan losses to total non-performing loans					217.09	%					268.43	%		215.96	%
Allowance for loan losses to total loans					1.02	%					1.04	%		0.99	%
Net loan charge-offs	$	5,493			6,756		$	4,010		$	14,560		$	8,129
Annualized net loan charge offs to average total loans		0.12	%		0.14	%		0.16	%		0.09	%		0.08	%

Average Balance Sheet Data
Assets	$	23,908,514		$	24,248,038		$	14,114,626		$	20,382,148		$	13,915,467
Loans, net		18,487,443			18,531,939			10,660,201			15,600,431			10,367,620
Earning assets		21,760,458			21,809,226			12,823,541			18,403,149			12,637,224
Savings and demand deposits		15,581,608			15,394,715			9,210,315			13,103,803			9,358,290
Borrowings		1,711,806			2,125,149			1,873,822			1,983,674			1,636,572
Interest-bearing liabilities		17,093,382			17,304,569			10,020,726			14,596,325			9,671,794
Stockholders’ equity		2,624,019			2,660,470			1,642,854			2,279,525			1,644,529
Average yield on interest-earning assets		5.66	%		5.84	%		5.04	%		5.68	%		4.87	%
Average cost of interest-bearing liabilities		3.03	%		3.19	%		2.71	%		3.05	%		2.24	%

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

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

(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
	2024			2024			2023			2024			2023
Net Income	$	48,524		$	46,405		$	27,312		$	115,525		$	128,398
Merger-related transaction costs		20,184			15,567			2,477			56,867			7,826
Less: income tax expense		(5,819	)		(4,306	)		(465	)		(14,010	)		(1,480	)
Annualized adjusted net income	$	62,889		$	57,666		$	29,324		$	158,382		$	134,744
Less: Amortization of Intangibles (net of tax)	$	6,649		$	8,551		$	504		$	20,226		$	2,064
Annualized adjusted net income for annualized adjusted return on average tangible equity	$	69,538		$	66,216		$	29,828		$	178,607		$	136,808

Annualized Adjusted Return on Average Assets		1.05	%		0.95	%		0.83	%		0.78	%		0.97	%
Annualized Adjusted Return on Average Equity		9.53	%		8.62	%		7.10	%		6.95	%		8.22	%
Annualized Adjusted Return on Average Tangible Equity		15.39	%		14.53	%		9.99	%		11.29	%		11.54	%

(2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net income	$	48,524		$	46,405		$	27,312		$	115,525		$	128,398
Adjustments to net income:
Provision charge (benefit) for credit losses		8,880			9,299			(863	)		87,564			28,168
Net loss on Lakeland bond sale		—			—			—			2,839			—
Merger-related transaction costs		20,184			15,567			2,477			56,867			7,826
Contingent litigation reserves		—			—			3,000			—			3,000
Income tax expense		14,185			18,850			12,456			34,090			47,381
Adjusted PTPP income	$	91,773		$	90,121		$	44,382		$	296,885		$	214,773

Annualized Adjusted PTPP income	$	365,097		$	358,525		$	176,081		$	296,885		$	214,773
Average assets	$	23,908,514		$	24,248,038		$	14,114,626		$	20,382,148		$	13,915,467
Average equity	$	2,624,019		$	2,660,470		$	1,642,854		$	2,279,525		$	1,644,529
Average tangible equity	$	1,797,994		$	1,813,327		$	1,184,444		$	1,581,339		$	1,185,026

Annualized Adjusted PTPP return on average assets		1.53	%		1.48	%		1.25	%		1.46	%		1.54	%
Annualized PTPP return on average equity		13.91	%		13.48	%		10.72	%		13.02	%		13.06	%
Annualized PTPP return on average tangible equity		20.31	%		19.77	%		14.87	%		18.77	%		18.12	%

(3) Annualized Return on Average Tangible Equity
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Total average stockholders’ equity	$	2,624,019		$	2,660,470		$	1,642,854		$	2,279,525		$	1,644,529
Less: total average intangible assets		826,025			847,143			458,410			698,186			459,503
Total average tangible stockholders’ equity	$	1,797,994		$	1,813,327		$	1,184,444		$	1,581,339		$	1,185,026

Net income	$	48,524		$	46,405		$	27,312		$	115,525		$	128,398
Less: Amortization of Intangibles, net of tax		6,649			8,551			504			20,226			2,064
Total net income (loss)	$	55,173		$	54,956		$	27,816		$	135,751		$	130,462

Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)		12.21	%		12.06	%		9.32	%		8.58	%		11.01	%

(4) Annualized Adjusted Non-Interest Expense to Average Assets
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Reported non-interest expense	$	134,323		$	136,002		$	75,851		$	457,548		$	275,336
Adjustments to non-interest expense:
Merger-related transaction costs		20,184			15,567			2,477			56,867			7,826
Contingent litigation reserves		—			—			3,000			—			3,000
Adjusted non-interest expense	$	114,139		$	120,435		$	70,374		$	400,681		$	264,510

Annualized adjusted non-interest expense	$	454,075		$	479,122		$	279,201		$	400,681		$	264,510
Average assets	$	23,908,514		$	24,248,038		$	14,114,626		$	20,382,148		$	13,915,467
Annualized adjusted non-interest expense/average assets		1.90	%		1.98	%		1.98	%		1.97	%		1.90	%

(5) Efficiency Ratio Calculation
	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
		2024			2024			2023			2024			2023
Net interest income	$	181,737		$	183,701		$	95,788		$	600,614		$	399,454
Non-interest income		24,175			26,855			18,968			94,113			79,829
Adjustments to non-interest income:
Net loss (gain) on securities transactions		14			(2	)		7			2,986			(30	)
Adjusted non-interest income		24,189			26,853			18,975			97,099			79,799
Total income	$	205,912		$	210,554		$	114,756		$	694,727		$	479,283

Adjusted non-interest expense	$	114,139		$	120,435		$	70,374		$	400,681		$	264,510

Efficiency ratio (adjusted non-interest expense/income)		55.43	%		57.20	%		61.32	%		57.67	%		55.19	%

(6) Book and Tangible Book Value per Share
										December 31,			December 31,
											2024			2023
Total stockholders’ equity										$	2,601,207		$	1,690,596
Less: total intangible assets											819,230			457,942
Total tangible stockholders’ equity										$	1,781,977		$	1,232,654

Shares outstanding											130,489,493			75,537,186

Book value per share (total stockholders’ equity/shares outstanding)										$	19.93		$	22.38
Tangible book value per share (total tangible stockholders’ equity/shares outstanding)										$	13.66		$	16.32

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
December 31, 2024 (Unaudited) and December 31, 2023
(Dollars in Thousands)

Assets	December 31, 2024			December 31, 2023
Cash and due from banks	$	166,914		$	180,241
Short-term investments		25			14
Total cash and cash equivalents		166,939			180,255
Available for sale debt securities, at fair value		2,768,915			1,690,112
Held to maturity debt securities, (net of $14,000 allowance as of December 31, 2024 (unaudited) and $31,000 allowance as of December 31, 2023)		327,623			363,080
Equity securities, at fair value		19,762			1,270
Federal Home Loan Bank stock		112,115			79,217
Loans held for sale		162,453			1,785
Loans held for investment		18,659,370			10,871,916
Less allowance for credit losses		193,432			107,200
Net loans		18,628,391			10,766,501
Foreclosed assets, net		9,473			11,651
Banking premises and equipment, net		119,622			70,998
Accrued interest receivable		91,160			58,966
Intangible assets		819,230			457,942
Bank-owned life insurance		405,893			243,050
Other assets		582,702			287,768
Total assets	$	24,051,825		$	14,210,810

Liabilities and Stockholders’ Equity
Deposits:
Demand deposits	$	13,775,991		$	8,020,889
Savings deposits		1,679,667			1,175,683
Certificates of deposit of $250,000 or more		789,342			218,549
Other time deposits		2,378,813			877,393
Total deposits		18,623,813			10,292,514
Mortgage escrow deposits		42,247			36,838
Borrowed funds		2,020,435			1,970,033
Subordinated debentures		401,608			10,695
Other liabilities		362,515			210,134
Total liabilities		21,450,618			12,520,214

Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued		—			—
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,489,493 shares outstanding as of December 31, 2024 and 75,537,186 outstanding as of December 31, 2023.		1,376			832
Additional paid-in capital		1,834,495			989,058
Retained earnings		989,111			974,542
Accumulated other comprehensive loss		(135,355	)		(141,115	)
Treasury stock		(88,420	)		(127,825	)
Unallocated common stock held by the Employee Stock Ownership Plan		—			(4,896	)
Common Stock acquired by the Directors’ Deferred Fee Plan		—			(2,694	)
Deferred Compensation – Directors’ Deferred Fee Plan		—			2,694
Total stockholders’ equity		2,601,207			1,690,596
Total liabilities and stockholders’ equity	$	24,051,825		$	14,210,810

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended December 31, 2024, September 30, 2024 (Unaudited) and December 31, 2023, and year ended December 31, 2024 (Unaudited) and 2023
(Dollars in Thousands, except per share data)

	Three Months Ended								Year Ended
	December 31,			September 30,		December 31,			December 31,			December 31,
		2024			2024		2023			2024			2023
Interest and dividend income:
Real estate secured loans	$	194,236		$	197,857	$	109,112		$	655,868		$	408,942
Commercial loans		75,978			81,183		34,939			251,793			128,854
Consumer loans		10,815			12,947		5,020			36,635			18,439
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		27,197			25,974		12,042			85,895			46,790
Held to maturity debt securities		2,125			2,136		2,303			8,885			9,362
Deposits, federal funds sold and other short-term investments		1,596			2,425		755			7,062			3,433
Total interest income		311,947			322,522		164,171			1,046,138			615,820

Interest expense:
Deposits		105,922			110,009		50,579			349,523			159,459
Borrowed funds		15,652			19,923		17,527			73,523			55,856
Subordinated debt		8,636			8,889		277			22,478			1,051
Total interest expense		130,210			138,821		68,383			445,524			216,366
Net interest income		181,737			183,701		95,788			600,614			399,454
Provision charge (benefit) for credit losses		8,880			9,299		(863	)		87,564			28,168
Net interest income after provision for credit losses		172,857			174,402		96,651			513,050			371,286

Non-interest income:
Fees		9,687			9,816		6,102			34,114			24,396
Wealth management income		7,655			7,620		6,843			30,533			27,669
Insurance agency income		3,289			3,631		2,759			16,201			13,934
Bank-owned life insurance		2,261			4,308		1,644			11,709			6,482
Net (loss) gain on securities transactions		(14	)		2		(7	)		(2,986	)		30
Other income		1,297			1,478		1,627			4,542			7,318
Total non-interest income		24,175			26,855		18,968			94,113			79,829

Non-interest expense:
Compensation and employee benefits		59,937			63,468		38,773			218,341			148,497
Net occupancy expense		12,562			12,790		7,797			45,014			32,271
Data processing expense		9,881			10,481		6,457			35,579			22,993
FDIC Insurance		3,411			4,180		2,890			12,964			8,578
Amortization of intangibles		9,511			12,231		721			28,931			2,952
Advertising and promotion expense		1,485			1,524		1,100			5,146			4,822
Merger-related expenses		20,184			15,567		2,477			56,867			7,826
Other operating expenses		17,352			15,761		15,636			54,706			47,397
Total non-interest expense		134,323			136,002		75,851			457,548			275,336
Income before income tax expense		62,709			65,255		39,768			149,615			175,779
Income tax expense		14,185			18,850		12,456			34,090			47,381
Net income	$	48,524		$	46,405	$	27,312		$	115,525		$	128,398

Basic earnings per share	$	0.37		$	0.36	$	0.36		$	1.05		$	1.72
Average basic shares outstanding		130,067,244			129,941,845		74,995,705			109,668,911			74,844,489

Diluted earnings per share	$	0.37		$	0.36	$	0.36		$	1.05		$	1.71
Average diluted shares outstanding		130,163,872			130,004,870		75,041,545			109,712,732			74,873,256

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)

	December 31, 2024						September 30, 2024						December 31, 2023
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Deposits	$	117,998	$	1,596	5.38	%	$	179,313	$	2,425	5.38	%	$	54,998	$	745	5.37	%
Federal funds sold and other short-term investments		—		—	—	%		—		—	—	%		838		10	4.39	%
Available for sale debt securities		2,720,065		25,063	3.69	%		2,644,262		24,884	3.72	%		1,647,906		9,858	2.39	%
Held to maturity debt securities, net ⁽¹⁾		328,147		2,125	2.59	%		342,217		2,136	2.50	%		364,433		2,303	2.53	%
Equity securities, at fair value		19,920		—	—	%		19,654		—	—	%		1,016		—	—	%
Federal Home Loan Bank stock		86,885		2,134	9.82	%		91,841		1,090	4.75	%		94,149		2,184	9.28	%
Net loans: ⁽²⁾
Total mortgage loans		13,287,942		194,236	5.75	%		13,363,265		197,857	5.83	%		8,028,300		109,112	5.34	%
Total commercial loans		4,587,048		75,978	6.54	%		4,546,088		81,183	7.05	%		2,329,430		34,939	5.90	%
Total consumer loans		612,453		10,815	7.02	%		622,586		12,947	8.27	%		302,471		5,020	6.58	%
Total net loans		18,487,443		281,029	5.99	%		18,531,939		291,987	6.21	%		10,660,201		149,071	5.50	%
Total interest-earning assets	$	21,760,458	$	311,947	5.66	%	$	21,809,226	$	322,522	5.84	%	$	12,823,541	$	164,171	5.04	%

Non-Interest Earning Assets:
Cash and due from banks		159,151						341,505						111,610
Other assets		1,988,905						2,097,307						1,179,475
Total assets	$	23,908,514					$	24,248,038					$	14,114,626

Interest-Bearing Liabilities:
Demand deposits	$	10,115,827	$	71,265	2.80	%	$	9,942,053	$	74,864	3.00	%	$	5,856,916	$	39,648	2.69	%
Savings deposits		1,677,725		968	0.23	%		1,711,502		1006	0.23	%		1,183,857		602	0.20	%
Time deposits		3,187,172		33,689	4.21	%		3,112,598		34,139	4.36	%		1,095,468		10,329	3.74	%
Total Deposits		14,980,724		105,922	2.81	%		14,766,153		110,009	2.96	%		8,136,241		50,579	2.47	%
Borrowed funds		1,711,806		15,652	3.64	%		2,125,149		19,923	3.73	%		1,873,822		17,527	3.71	%
Subordinated debentures		400,852		8,636	8.57	%		413,267		8,889	8.56	%		10,663		277	10.27	%
Total interest-bearing liabilities		17,093,382		130,210	3.03	%		17,304,569		138,821	3.19	%		10,020,726		68,383	2.71	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,788,056						3,741,160						2,169,542
Other non-interest bearing liabilities		403,057						541,839						281,504
Total non-interest bearing liabilities		4,191,113						4,282,999						2,451,046
Total liabilities		21,284,495						21,587,568						12,471,772
Stockholders’ equity		2,624,019						2,660,470						1,642,854
Total liabilities and stockholders’ equity	$	23,908,514					$	24,248,038					$	14,114,626

Net interest income			$	181,737					$	183,701					$	95,788
Net interest rate spread					2.63	%					2.65	%					2.33	%
Net interest-earning assets	$	4,667,076					$	4,504,657					$	2,802,815
Net interest margin ⁽³⁾					3.28	%					3.31	%					2.92	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.27x						1.26x						1.28x


(1	)	Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2	)	Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
(3	)	Annualized net interest income divided by average interest-earning assets.

The following table summarizes the quarterly net interest margin for the previous five quarters.

	12/31/24		9/30/24		6/30/24		3/31/24		12/31/23
	4th Qtr.		3rd Qtr.		2nd Qtr.		1st Qtr.		4th Qtr.
Interest-Earning Assets:
Securities	3.78	%	3.69	%	3.40	%	2.87	%	2.79	%
Net loans	5.99	%	6.21	%	6.05	%	5.51	%	5.50	%
Total interest-earning assets	5.66	%	5.84	%	5.67	%	5.06	%	5.04	%

Interest-Bearing Liabilities:
Total deposits	2.81	%	2.96	%	2.84	%	2.60	%	2.47	%
Total borrowings	3.64	%	3.73	%	3.83	%	3.60	%	3.71	%
Total interest-bearing liabilities	3.03	%	3.19	%	3.09	%	2.80	%	2.71	%

Interest rate spread	2.63	%	2.65	%	2.58	%	2.26	%	2.33	%
Net interest margin	3.28	%	3.31	%	3.21	%	2.87	%	2.92	%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x		1.26x		1.25x		1.28x		1.28x

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)

	December 31, 2024						December 31, 2023
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	36,932	$	7,062	5.23	%	$	65,991	$	3,421	5.18	%
Federal funds sold and other short-term investments		—		—	—	%		255		12	4.55	%
Available for sale debt securities		2,323,158		77,617	3.32	%		1,745,105		40,678	2.33	%
Held to maturity debt securities, net ⁽¹⁾		344,903		8,885	2.58	%		375,436		9,362	2.49	%
Equity securities, at fair value		12,367		—	—	%		1,020		—	—	%
Federal Home Loan Bank stock		85,358		8,278	9.70	%		81,797		6,112	7.47	%
Net loans: ⁽²⁾
Total mortgage loans		11,333,540		655,868	5.79	%		7,813,764		408,942	5.23	%
Total commercial loans		3,768,388		251,793	6.68	%		2,251,175		128,854	5.72	%
Total consumer loans		498,503		36,635	7.35	%		302,681		18,439	6.09	%
Total net loans		15,600,431		944,296	6.05	%		10,367,620		556,235	5.37	%
Total interest-earning assets	$	18,403,149	$	1,046,138	5.68	%	$	12,637,224	$	615,820	4.87	%

Non-Interest Earning Assets:
Cash and due from banks		233,829						119,232
Other assets		1,745,170						1,159,011
Total assets	$	20,382,148					$	13,915,467

Interest-Bearing Liabilities:
Demand deposits	$	8,480,380	$	245,874	2.90	%	$	5,747,671	$	125,471	2.18	%
Savings deposits		1,502,852		3,443	0.23	%		1,282,062		2,184	0.17	%
Time deposits		2,367,144		100,206	4.23	%		994,901		31,804	3.20	%
Total deposits		12,350,376		349,523	2.83	%		8,024,634		159,459	1.99	%
Borrowed funds		1,983,674		73,523	3.71	%		1,636,572		55,856	3.41	%
Subordinated debentures		262,275		22,478	8.57	%		10,588		1,051	9.92	%
Total interest-bearing liabilities	$	14,596,325	$	445,524	3.05	%	$	9,671,794	$	216,366	2.24	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,120,571						2,328,557
Other non-interest bearing liabilities		385,727						270,587
Total non-interest bearing liabilities		3,506,298						2,599,144
Total liabilities		18,102,623						12,270,938
Stockholders’ equity		2,279,525						1,644,529
Total liabilities and stockholders’ equity	$	20,382,148					$	13,915,467

Net interest income			$	600,614					$	399,454
Net interest rate spread					2.63	%					2.63	%
Net interest-earning assets	$	3,806,824					$	2,965,430
Net interest margin ⁽³⁾					3.26	%					3.16	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.26x						1.31x


(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
(3) Annualized net interest income divided by average interest-earning assets.

The following table summarizes the year-to-date net interest margin for the previous three years.

	Year Ended
	December 31, 2024		December 31, 2023		December 31, 2022
Interest-Earning Assets:
Securities	3.43	%	2.62	%	1.86	%
Net loans	6.05	%	5.37	%	4.26	%
Total interest-earning assets	5.68	%	4.87	%	3.76	%

Interest-Bearing Liabilities:
Total deposits	2.83	%	1.99	%	0.47	%
Total borrowings	3.71	%	3.41	%	1.23	%
Total interest-bearing liabilities	3.05	%	2.24	%	0.54	%

Interest rate spread	2.63	%	2.63	%	3.22	%
Net interest margin	3.26	%	3.16	%	3.37	%

Ratio of interest-earning assets to interest-bearing liabilities	1.26x		1.31x		1.38x

The MIL Network –

January 29, 2025

MIL-OSI: Darren Morcombe Acquires Common Shares of Southern Cross Gold Consolidated Ltd.

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, Jan. 28, 2025 (GLOBE NEWSWIRE) — Darren Morcombe announces that his security holding percentage in the common shares (each, a “Share”) of Southern Cross Gold Consolidated Ltd. (the “Company”), following the Company’s completion of a scheme of arrangement with Southern Cross Gold Ltd. (“SXG1”), as announced in the Company’s press release dated January 23, 2025, is approximately 13.22% on a partially diluted basis.

Effective January 23, 2025, the Company, an issuer listed on the TSX Venture Exchange (TSXV: SXGC) and on the Australian Securities Exchange (ASX: SX2), with its head office at Suite 1305, 1090 West Georgia Street, Vancouver, British Columbia, V6E 3V7, acquired pursuant to a scheme of arrangement all the issued share capital of SXG1 it did not previously own in consideration for the issuance of 125,041,031 Shares at an exchange ratio of 1:1 and a deemed price of $3.35 per Share (the “Transaction”). Prior to the Transaction, SXG1 was listed on the Australian Securities Exchange.

Immediately prior to the completion of the Transaction, Mr. Morcombe owned and controlled 5,454,286 Shares, representing approximately 5.65% of the then-outstanding Shares on a partially diluted basis.

Pursuant to the Transaction, Mr. Morcombe acquired control and ownership over an additional 22,546,434 Shares and 1,500,000 options to purchase Shares, resulting in control and ownership over a total of 28,000,720 Shares and 1,500,000 options to purchase Shares, representing approximately 13.22% of the outstanding Shares on a partially diluted basis, and a change in Mr. Morcombe’s security holding percentage in the Shares of 7.57%.

Mr. Morcombe acquired the Shares for investment purposes. Mr. Morcombe may, depending on various factors, including, without limitation, market and other conditions, increase or decrease his beneficial ownership, control or direction over Shares or other securities of the Company.

For further information, please contact:

Mariana Bermudez
Telephone: 604-685-9316

This news release is issued pursuant to the early warning requirements of applicable securities laws. A copy of the Early Warning Report will appear on the Company’s profile on the SEDAR+ website at www.sedarplus.ca. A copy of the Early Warning Report may also be obtained by contacting Mariana Bermudez.

The MIL Network –

January 29, 2025

MIL-OSI: Fairfax India Shareholders Approve One-Time Deviation From Investment Concentration Restriction

Source: GlobeNewswire (MIL-OSI)

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Fairfax India Holdings Corporation (“Fairfax India” or the “Company”) (TSX: FIH.U) is pleased to announce the voting results from its special meeting of shareholders held on January 28, 2025 (the “Special Meeting”) in connection with a proposed one-time deviation from the Company’s investment concentration restriction set forth in its by-laws (the “Investment Concentration Restriction”) in order to complete the previously announced acquisition of an additional 10% equity interest in Bangalore International Airport Limited (the “Additional BIAL Investment”).

The special resolution to approve the one-time deviation from the Investment Concentration Restriction required the approval of the holders of multiple voting shares and subordinate voting shares of the Company, each voting separately as a class. At the Special Meeting, the special resolution was approved by (i) 100% of the votes cast by holders of multiple voting shares, and (ii) approximately 99% of the votes cast by holders of subordinate voting shares.

Completion of the Additional BIAL Investment remains subject to receipt of applicable third party consents and other customary closing conditions. Assuming that the remaining conditions to closing are satisfied, it is expected that the Additional BIAL Investment will close in Q1 2025.

About Fairfax India

Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.

For further information, contact:	John Varnell, Vice President, Corporate Affairs
	(416) 367-4755

This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the Company’s or an Indian Investment’s future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities of the Company, an Indian Investment, or the Indian market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are based on our opinions and estimates as of the date of this press release, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors: oil price risk; geographic concentration of investments; foreign currency fluctuation; volatility of the Indian securities markets; investments may be made in foreign private businesses where information is unreliable or unavailable; valuation methodologies involve subjective judgments; financial market fluctuations; pace of completing investments; minority investments; reliance on key personnel and risks associated with the Investment Advisory Agreement; disruption of the Company’s information technology systems; lawsuits; use of leverage; significant ownership by Fairfax may adversely affect the market price of the subordinate voting shares; weather risk; taxation risks; emerging markets; MLI; economic risk; trading price of subordinate voting shares relative to book value per share risk; and economic disruptions from the after-effects of the COVID-19 pandemic and the conflicts in Ukraine and the Middle East. Additional risks and uncertainties are described in the Company’s annual information form dated March 8, 2024 which is available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.fairfaxindia.ca. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws.

The MIL Network –

January 29, 2025

MIL-OSI: Ponce Financial Group, Inc. Reports Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Ponce Financial Group, Inc., (the “Company”) (NASDAQ: PDLB), the holding company for Ponce Bank (the “Bank”), today announced results for the fourth quarter of 2024.

Fourth Quarter 2024 Highlights (Compared to Prior Periods):

Net income available to common stockholders was $2.7 million, or $0.12 per diluted share for the three months ended December 31, 2024, as compared to net income available to common stockholders of $2.2 million, or $0.10 per diluted share for the three months ended September 30, 2024 and net income available to common stockholders of $0.5 million, or $0.02 per diluted share for the three months ended December 31, 2023. Total net income for the three months ended December 31, 2024 was $2.9 million. The Company paid dividends of $0.3 million on its preferred stock during the three months ended December 31, 2024.
Included in the $2.7 million of net income available to common stockholders for the fourth quarter of 2024 results is $42.9 million in interest and dividend income and $2.1 million in non-interest income, offset by $22.2 million in interest expense, $17.3 million in non-interest expense, $1.5 million in provision for income taxes. $1.1 million in provision for credit losses and $0.3 million in dividends on preferred shares.
Net interest income of $20.7 million for the fourth quarter of 2024 increased $1.7 million, or 8.97%, from the prior quarter and increased $3.5 million, or 20.54%, from the same quarter last year.
Net interest margin was 2.80% for the fourth quarter of 2024, versus 2.65% for the prior quarter and 2.66% for the same quarter last year.

Full Year 2024 Highlights (Compared to 2023):

Net income available to common stockholders was $10.3 million, or $0.46 per diluted share for the year ended December 31, 2024, compared to net income available to common stockholders of $3.4 million, or $0.15 per diluted share for the year ended December 31, 2023. Total net income for the year ended December 31, 2024, prior to the payment of $0.6 million in dividends on preferred shares, was $11.0 million.
Net interest income for the year ended December 31, 2024 was $76.5 million, an increase of $11.2 million, or 17.18%, compared to $65.3 million for the year ended December 31, 2023.
Non-interest income for the year ended December 31, 2024 was $7.2 million, a decrease of $3.0 million, or 29.44%, from $10.2 million for the year ended December 31, 2023. The decrease was primarily driven by $4.2 million in grants that were received in the prior year.
Non-interest expense for the year ended December 31, 2024 was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023.
Cash and equivalents were $139.8 million as of December 31, 2024, an increase of $0.6 million, or 0.47%, from $139.2 million as of December 31, 2023.
Securities totaled $472.9 million as of December 31, 2024, a decrease of $108.7 million, or 18.70%, from $581.7 million as of December 31, 2023 primarily due to regular principal payments, the maturity of one available-for-sale security in the amount of $4.0 million and one held-to-maturity security in the amount of $25.0 million and the call of one held-to-maturity security in the amount of $25.0 million.
Net loans receivable were $2.29 billion as of December 31, 2024, an increase of $390.7 million, or 20.61%, from $1.90 billion as of December 31, 2023.
Deposits were $1.88 billion as of December 31, 2024, an increase of $377.2 million, or 25.02%, from $1.51 billion as of December 31, 2023.

President and Chief Executive Officer’s Comments

Carlos P. Naudon, Ponce Financial Group, Inc.’s President and CEO, stated, “We are pleased with the progress we have made in 2024. We executed an agreement with the U.S. Treasury that gives us the option, upon achievement of certain conditions, to buy back the ECIP preferred shares we previously issued at favorable prices, we launched our PonceDirect digital bank and gained significant traction with SBA loans. Our levels of liquidity and capital remain strong, while our loans grew by 20.61% and deposits by 25.02%. We have seen consistent profitability over the past several quarters as we continue to see increases both in net interest income as well as net interest margin, while expenses are down year on year, reflecting both reduced development and continued adoption of our new technology. We remain committed to the communities we serve and our status as a Minority Depository Institution (“MDI”)/Community Development Financial Institution (“CDFI”), and we continue to invest in our people and in technology to improve our efficiency.”

Executive Chairman’s Comment

Steven A. Tsavaris, Ponce Financial Group’s Executive Chairman added, “We are working diligently to ensure that we will meet the conditions necessary to allow us to repurchase our ECIP preferred stock in the future. The agreement we executed with the U.S. Treasury in December 2024, allows for a repurchase of the ECIP preferred stock once we have achieved Deep Impact Lending, as defined under the ECIP program, that is at least 60% of our total originations on average over 16 consecutive quarters, provided that we also meet certain other conditions at the time we exercise the repurchase option. As of December 31, 2024, our Deep Impact Lending over the last 10 consecutive quarters stands at 79%, well above the threshold. Also, from second quarter of 2024 to fourth quarter of 2024, we have originated $514 million of Deep Impact Lending as well as $54 million of qualified lending which represents 383% of our base, which period, together with the first quarter of 2025, will determine the rate of dividends payable on the ECIP preferred stock from the third quarter of 2025 to the second quarter of 2026. With one quarter to go, we are confident that we will get to over 400% of our base and ensure another year of preferred dividends of 0.50%, which is the lowest dividend rate.”

Selected performance metrics are as follows (refer to “Key Metrics” for additional information):

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Performance Ratios (Annualized):	2024			2024			2024			2024			2023
Return on average assets (1)		0.38	%		0.33	%		0.45	%		0.33	%		0.08	%
Return on average equity (1)		2.30	%		1.93	%		2.59	%		1.97	%		0.42	%
Net interest rate spread (1) (2)		1.98	%		1.77	%		1.72	%		1.82	%		1.74	%
Net interest margin (1) (3)		2.80	%		2.65	%		2.62	%		2.71	%		2.66	%
Non-interest expense to average assets (1)		2.25	%		2.19	%		2.28	%		2.35	%		2.66	%
Efficiency ratio (4)		75.63	%		80.87	%		80.09	%		82.56	%		96.83	%
Average interest-earning assets to average interest- bearing liabilities		127.60	%		128.35	%		129.73	%		129.69	%		133.50	%
Average equity to average assets		16.59	%		16.97	%		17.41	%		17.00	%		18.25	%

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Capital Ratios (Annualized):	2024			2024			2024			2024			2023
Total capital to risk-weighted assets (Bank only)		21.47	%		21.61	%		22.47	%		22.79	%		23.30	%
Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Tier 1 capital to average assets (Bank only)		15.81	%		16.19	%		16.70	%		16.26	%		17.49	%

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Asset Quality Ratios (Annualized):	2024			2024			2024			2024			2023
Allowance for loan losses as a percentage of total loans		0.97	%		1.09	%		1.18	%		1.23	%		1.36	%
Allowance for loan losses as a percentage of nonperforming loans		82.29	%		139.52	%		130.28	%		140.90	%		152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.45	%)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)
Non-performing loans as a percentage of total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Non-performing loans as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Summary of Results of Operations

Net income for the three months ended December 31, 2024 was $2.9 million compared to net income of $2.4 million for the three months ended September 30, 2024 and net income of $0.5 million for the three months ended December 31, 2023.

The $0.5 million increase of net income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was attributed mainly to increases of $1.7 million in net interest income and $1.0 million in non-interest income, partially offset by increases of $1.0 million in non-interest expense, $0.9 million in provision for income taxes and $0.3 million in provision for credit losses.

The $2.4 million increase of net income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to increases of $3.5 million in net interest income and $0.9 million in non-interest income and a decrease of $0.5 million in non-interest expense, partially offset by increases of $1.5 million in provision for credit losses and $1.1 million in provision for income taxes.

Net income for the year ended December 31, 2024 was $11.0 million compared to a net income of $3.4 million for the year ended December 31, 2023. The $7.6 million increase in net income was attributable to an increase of $11.2 million in net interest income and
a decrease of $1.9 million in non-interest expense, partially offset by a decrease of $2.9 million in non-interest income and increases of $2.2 million in provision for income taxes and $0.4 million in provision for credit losses.

Net Interest Income and Net Margin

Net interest income for the three months ended December 31, 2024, increased $1.7 million, or 8.97%, to $20.7 million compared to $19.0 million for the three months ended September 30, 2024 and increased $3.5 million, or 20.54%, compared to $17.2 million for the three months ended December 31, 2023.

Net interest income for the year ended December 31, 2024, increased $11.2 million, or 17.18%, to $76.5 million, compared to $65.3 million for the year ended December 31, 2023. The $11.2 million increase in net interest income was attributable to an increase of $36.8 million in total interest and dividend income, offset by an increase of $25.6 million in total interest expense.

For the year ended December 31, 2024, provision for credit losses amounted to $1.3 million, consisting of a provision for credit losses on loans in the amount of $1.5 million and a benefit on credit losses on held-to-maturity securities in the amount of $0.2 million.

Net interest margin was 2.80% for the three months ended December 31, 2024 compared to 2.65% for the prior quarter, an increase of 15bps and 2.66% for the same period last year, an increase of 14bps.

Net interest margin was 2.70% for the year ended December 31, 2024 compared to 2.66% for the year ended December 31, 2023, an increase of 4bps.

Non-interest Income

Non-interest income for the three months ended December 31, 2024, was $2.1 million, an increase of $0.9 million, or 82.19%, compared to $1.2 million for the three months ended September 30, 2024 and an increase of $0.8 million, or 63.19%, compared to $1.3 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was largely attributable to increases of $0.5 million in other non-interest income, $0.2 million in late and prepayment charges and $0.1 million in income on sale of SBA loans.

The $0.8 million increase in non-interest income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely attributable to increases of $1.1 million in other non-interest income and $0.1 million in income on sale of SBA loans, partially offset by a decrease of $0.4 million in grant income received in the fourth quarter of 2023.

Non-interest income for the year ended December 31, 2024, was $7.2 million, a decrease of $3.0 million, or 29.44%, compared to $10.2 million for the year ended December 31, 2023. The $3.0 million decrease in non-interest income was largely attributable to $4.2 million related to grants received in 2023 and a decrease of $1.2 million in late and prepayment charges, partially offset by increases of $1.8 million in other non-interest income, $0.5 million in income on sale of mortgage loans and $0.1 million in income on sale of SBA loans.

Non-interest Expense

Non-interest expense for the three months ended December 31, 2024, was $17.3 million, an increase of $0.9 million, or 5.82%, compared to $16.3 million for the three months ended September 30, 2024 and a decrease of $0.6 million, or 3.54%, compared to $17.9 million for the three months ended December 31, 2023.

The $0.9 million increase in non-interest expense from the three months ended September 30, 2024 was mainly attributable to increases of $0.4 million in professional fees, $0.2 million in other operating expense, $0.1 million in marketing and promotional expenses, $0.1 million in office supplies, telephone and postage and $0.1 million in occupancy and equipment.

The $0.6 million decrease in non-interest expense from the three months ended December 31, 2023 was mainly attributable to decreases of $0.6 million in provision for contingencies, $0.6 million in compensation and benefits and $0.3 million in professional fees, partially offset by increases of $0.3 million in other operating expense, $0.2 million in occupancy and equipment, $0.1 million in marketing and promotional expenses and $0.1 million in direct loan expenses.

Non-interest expense for the year ended December 31, 2024, was $66.7 million, a decrease of $2.0 million, or 2.90%, compared to $68.7 million for the year ended December 31, 2023. The $2.0 million decrease in non-interest expense from the year ended December 31, 2023 was mainly attributable to decreases of $3.1 million in provision for contingencies, $0.9 million in professional fees, $0.7 million in data processing expenses, $0.5 million in office supplies, telephone and postage, partially offset by a decrease in microloans recoveries of $1.3 million and increases of $0.9 million in direct loan expenses, $0.3 million in occupancy and equipment and $0.2 million in compensation and benefits.

Balance Sheet Summary

Total assets increased $289.2 million, or 10.51%, to $3.04 billion as of December 31, 2024 from $2.75 billion as of December 31, 2023. The increase in total assets is largely attributable to increases of $390.7 million in net loans receivable, $9.8 million in Federal Home Loan Bank of New York stock, $0.8 million in mortgage loans held for sale, $0.7 million in premises and equipment and $0.6 million in cash and cash equivalents, partially offset by decreases of $93.8 million in held-to-maturity securities, $14.9 million in available-for-sale securities, $2.3 million in deferred tax assets and $2.2 million in right of use assets.

Total liabilities increased $275.1 million, or 12.18%, to $2.53 billion as of December 31, 2024 from $2.26 billion as of December 31, 2023. The increase in total liabilities was largely attributable to an increase of $377.2 million in deposits, partially offset by decreases of $88.3 million in borrowings, $8.3 million in accrued interest payable, $3.1 million in other liabilities, $2.0 million in operating lease liabilities and $0.4 million in advance payments by borrowers for taxes.

Total stockholders’ equity increased $14.1 million, or 2.87%, to $505.5 million as of December 31, 2024, from $491.4 million as of December 31, 2023. The $14.1 million increase in stockholders’ equity was largely attributable to $11.0 million in net income, $2.1 million impact to additional paid in capital as a result of share-based compensation and $1.4 million from release of ESOP shares and $0.3 million in other comprehensive income, offset by $0.6 million in dividends on preferred shares.

About Ponce Financial Group, Inc.

Ponce Financial Group, Inc. is the holding company for Ponce Bank. Ponce Bank is a Minority Depository Institution, a Community Development Financial Institution, and a certified Small Business Administration lender. Ponce Bank’s business primarily consists of taking deposits from the general public and to a lesser extent alternative funding sources and investing those funds, together with funds generated from operations and borrowings, in mortgage loans, consisting of 1-4 family residences (investor-owned and owner-occupied), multifamily residences, nonresidential properties, construction and land, and, to a lesser extent, in business and consumer loans. Ponce Bank also invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as, mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “project,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on business activities; changes in interest rates; competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which Ponce Bank operates, including changes that adversely affect borrowers’ ability to service and repay Ponce Bank’s loans; changes in the value of securities in the investment portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; changes in government regulation; changes in accounting standards and practices; the risk that intangibles recorded in the financial statements will become impaired; demand for loans in Ponce Bank’s market area; Ponce Bank’s ability to attract and maintain deposits; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that Ponce Financial Group, Inc. may not be successful in the implementation of its business strategy; changes in assumptions used in making such forward-looking statements and the risk factors described in Ponce Financial Group, Inc.’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Ponce Financial Group, Inc. disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as may be required by applicable law or regulation.

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(Dollars in thousands, except for share data)


	As of
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
ASSETS
Cash and due from banks:
Cash	$	35,478		$	32,061		$	23,128		$	29,972		$	28,930
Interest-bearing deposits		104,361			123,751			80,038			104,752			110,260
Total cash and cash equivalents		139,839			155,812			103,166			134,724			139,190
Available-for-sale securities, at fair value		104,970			111,005			113,125			116,044			119,902
Held-to-maturity securities, at amortized cost		367,938			403,736			442,113			452,955			461,748
Placement with banks		249			249			249			249			249
Mortgage loans held for sale, at fair value		10,736			9,566			37,764			7,860			9,980
Loans receivable, net		2,286,599			2,180,331			2,022,173			1,981,428			1,895,886
Accrued interest receivable		17,771			16,890			17,441			18,063			18,010
Premises and equipment, net		16,794			16,843			16,976			17,396			16,053
Right of use assets		29,093			29,785			30,349			31,021			31,272
Federal Home Loan Bank of New York stock (FHLBNY), at cost		29,182			28,515			23,972			23,892			19,377
Deferred tax assets		12,074			11,845			13,172			13,919			14,332
Other assets		24,693			51,392			21,507			21,151			24,723
Total assets	$	3,039,938		$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits	$	1,884,864		$	1,870,323		$	1,606,097		$	1,585,784		$	1,507,620
Operating lease liabilities		30,696			31,343			31,861			32,486			32,684
Accrued interest payable		3,712			2,918			6,820			4,218			11,965
Advance payments by borrowers for taxes and insurance		10,349			13,733			10,838			13,245			10,778
Borrowings		596,100			580,421			680,421			680,421			684,421
Other liabilities		8,717			12,642			8,313			8,866			11,859
Total liabilities		2,534,438			2,511,380			2,344,350			2,325,020			2,259,327
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.01 par value; 100,000,000 shares authorized		225,000			225,000			225,000			225,000			225,000
Common stock, $0.01 par value; 200,000,000 shares authorized		249			249			249			249			249
Treasury stock, at cost		(7,707	)		(9,445	)		(9,519	)		(9,702	)		(9,747	)
Additional paid-in-capital		207,319			208,478			207,934			207,584			207,106
Retained earnings		107,754			105,103			102,951			99,834			97,420
Accumulated other comprehensive loss		(15,297	)		(12,686	)		(16,557	)		(16,590	)		(15,649	)
Unearned compensation ─ ESOP		(11,818	)		(12,110	)		(12,401	)		(12,693	)		(12,984	)
Total stockholders’ equity		505,500			504,589			497,657			493,682			491,395
Total liabilities and stockholders’ equity	$	3,039,938		$	3,015,969		$	2,842,007		$	2,818,702		$	2,750,722

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Interest and dividend income:
Interest on loans receivable	$	35,622		$	32,945		$	31,281		$	30,664		$	27,814
Interest on deposits due from banks		1,783			2,430			1,542			2,911			990
Interest and dividend on securities and FHLBNY stock		5,481			5,918			5,969			6,091			6,146
Total interest and dividend income		42,886			41,293			38,792			39,666			34,950
Interest expense:
Interest on certificates of deposit		8,104			6,926			6,358			6,380			5,103
Interest on other deposits		8,476			8,519			7,389			6,540			5,706
Interest on borrowings		5,576			6,825			7,141			7,923			6,944
Total interest expense		22,156			22,270			20,888			20,843			17,753
Net interest income		20,730			19,023			17,904			18,823			17,197
Provision (benefit) for credit losses		1,099			789			(374	)		(180	)		(375	)
Net interest income after provision (benefit) for credit losses		19,631			18,234			18,278			19,003			17,572
Non-interest income:
Service charges and fees		500			508			492			473			498
Brokerage commissions		44			—			9			8			13
Late and prepayment charges		318			77			426			359			365
Income on sale of mortgage loans		254			218			274			302			244
Income on sale of SBA loans		148			—			—			—			—
Grant income		—			—			—			—			438
Other		833			348			1,057			565			(273	)
Total non-interest income		2,097			1,151			2,258			1,707			1,285
Non-interest expense:
Compensation and benefits		7,668			7,674			7,724			7,844			8,262
Occupancy and equipment		3,863			3,786			3,564			3,667			3,686
Data processing expenses		1,143			1,099			1,013			1,127			1,101
Direct loan expenses		617			573			633			732			497
(Benefit) provision for contingencies		(202	)		(252	)		(493	)		164			418
Insurance and surety bond premiums		293			292			263			253			250
Office supplies, telephone and postage		294			222			233			249			294
Professional fees		1,703			1,351			1,369			1,723			2,040
Microloans recoveries		(29	)		(54	)		(65	)		(53	)		(152	)
Marketing and promotional expenses		289			180			145			100			146
Federal deposit insurance and regulatory assessment ⁽¹⁾		418			392			428			389			395
Other operating expenses ⁽¹⁾		1,206			1,051			1,333			755			960
Total non-interest expense		17,263			16,314			16,147			16,950			17,897
Income before income taxes		4,465			3,071			4,389			3,760			960
Provision for income taxes		1,532			638			1,197			1,346			442
Net income	$	2,933		$	2,433		$	3,192		$	2,414		$	518
Dividends on preferred shares		282			281			75			—			—
Net income available to common stockholders	$	2,651		$	2,152		$	3,117		$	2,414		$	518
Earnings per common share:
Basic	$	0.12		$	0.10		$	0.14		$	0.11		$	0.02
Diluted	$	0.12		$	0.10		$	0.14		$	0.11		$	0.02
Weighted average common shares outstanding:
Basic		22,528,160			22,446,009			22,409,803			22,353,492			22,224,945
Diluted		22,807,644			22,612,028			22,419,309			22,366,728			22,406,102

_{⁽¹⁾ For the three months ended September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, $0.3 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.1 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses for each periods.}

Ponce Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except per share data)

	For the Years Ended December 31,
	2024			2023			Variance $			Variance %
Interest and dividend income:
Interest on loans receivable	$	130,512		$	95,805		$	34,707			36.23	%
Interest on deposits due from banks		8,666			4,973			3,693			74.26	%
Interest and dividend on securities and FHLBNY stock		23,459			25,089			(1,630	)		(6.50	%)
Total interest and dividend income		162,637			125,867			36,770			29.21	%
Interest expense:
Interest on certificates of deposit		27,768			16,571			11,197			67.57	%
Interest on other deposits		30,924			18,570			12,354			66.53	%
Interest on borrowings		27,465			25,460			2,005			7.88	%
Total interest expense		86,157			60,601			25,556			42.17	%
Net interest income		76,480			65,266			11,214			17.18	%
Provision for credit losses		1,334			973			361			37.10	%
Net interest income after provision for credit losses		75,146			64,293			10,853			16.88	%
Non-interest income:
Service charges and fees		1,973			1,986			(13	)		(0.65	%)
Brokerage commissions		61			80			(19	)		(23.75	%)
Late and prepayment charges		1,180			2,365			(1,185	)		(50.11	%)
Income on sale of mortgage loans		1,048			598			450			75.25	%
Income on sale of SBA loans		148			—			148			100.00	%
Grant income		—			4,156			(4,156	)		(100.00	%)
Other		2,803			1,038			1,765			170.04	%
Total non-interest income		7,213			10,223			(3,010	)		(29.44	%)
Non-interest expense:
Compensation and benefits		30,910			30,699			211			0.69	%
Occupancy and equipment		14,880			14,568			312			2.14	%
Data processing expenses		4,382			5,083			(701	)		(13.79	%)
Direct loan expenses		2,555			1,623			932			57.42	%
(Benefit) provision for contingencies		(783	)		2,311			(3,094	)		(133.88	%)
Insurance and surety bond premiums		1,101			1,018			83			8.15	%
Office supplies, telephone and postage		998			1,483			(485	)		(32.70	%)
Professional fees		6,146			7,092			(946	)		(13.34	%)
Microloans recoveries		(201	)		(1,481	)		1,280			(86.43	%)
Marketing and promotional expenses		714			825			(111	)		(13.45	%)
Federal deposit insurance and regulatory assessments ⁽¹⁾		1,627			1,472			155			10.53	%
Other operating expenses ⁽¹⁾		4,345			3,970			375			9.45	%
Total non-interest expense		66,674			68,663			(1,989	)		(2.90	%)
Income before income taxes		15,685			5,853			9,832			167.98	%
Provision for income taxes		4,713			2,501			2,212			88.44	%
Net income	$	10,972		$	3,352		$	7,620			227.33	%
Dividends on preferred shares		638			—			638			100.00	%
Net income available to common stockholders	$	10,334		$	3,352		$	6,982			208.29	%
Earnings per common share:
Basic	$	0.46		$	0.15		$	0.31			206.67	%
Diluted	$	0.46		$	0.15		$	0.31			206.67	%
Weighted average common shares outstanding:
Basic		22,434,654			22,745,317			(310,663	)		(1.37	%)
Diluted		22,551,715			22,822,313			(270,598	)		(1.19	%)

_{⁽¹⁾ For the year ended December 31, 2023, $1.2 million of federal deposit insurance was reclassified from other operating expenses to federal deposit insurance and regulatory assessments and $0.4 million of directors fees were reclassified from federal deposit insurance and regulatory assessments to other operating expenses.}

Ponce Financial Group, Inc. and Subsidiaries
Key Metrics

	At or for the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Performance Ratios:
Return on average assets (1)		0.38	%		0.33	%		0.45	%		0.33	%		0.08	%
Return on average equity (1)		2.30	%		1.93	%		2.59	%		1.97	%		0.42	%
Net interest rate spread (1) (2)		1.98	%		1.77	%		1.72	%		1.82	%		1.74	%
Net interest margin (1) (3)		2.80	%		2.65	%		2.62	%		2.71	%		2.66	%
Non-interest expense to average assets (1)		2.25	%		2.19	%		2.28	%		2.35	%		2.66	%
Efficiency ratio (4)		75.63	%		80.87	%		80.09	%		82.56	%		96.83	%
Average interest-earning assets to average interest- bearing liabilities		127.60	%		128.35	%		129.73	%		129.69	%		133.50	%
Average equity to average assets		16.59	%		16.97	%		17.41	%		17.00	%		18.25	%
Capital Ratios:
Total capital to risk-weighted assets (Bank only)		21.47	%		21.61	%		22.47	%		22.79	%		23.30	%
Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Common equity Tier 1 capital to risk-weighted assets (Bank only)		20.40	%		20.45	%		21.24	%		21.54	%		22.05	%
Tier 1 capital to average assets (Bank only)		15.81	%		16.19	%		16.70	%		16.26	%		17.49	%
Asset Quality Ratios:
Allowance for credit losses on loans as a percentage of total loans		0.97	%		1.09	%		1.18	%		1.23	%		1.36	%
Allowance for credit losses on loans as a percentage of nonperforming loans		82.29	%		139.52	%		130.28	%		140.90	%		152.99	%
Net (charge-offs) recoveries to average outstanding loans (1)		(0.45	%)		(0.17	%)		(0.10	%)		(0.25	%)		(0.24	%)
Non-performing loans as a percentage of total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Non-performing loans as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets as a percentage of total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets (5)		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%
Other:
Number of offices		19			19			18			18			18
Number of full-time equivalent employees		218			228			227			233			237

	(1)	Annualized where appropriate.
	(2)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
	(4)	Efficiency ratio represents noninterest expense divided by the sum of net interest income and non-interest income.
	(5)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.

Ponce Financial Group, Inc. and Subsidiaries
Securities Portfolio

	December 31, 2024										December 31, 2023
				Gross		Gross								Gross		Gross
	Amortized			Unrealized		Unrealized					Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value		Cost			Gains		Losses			Fair Value
	(in thousands)										(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,994		$	—	$	(121	)	$	2,873	$	2,990		$	—	$	(206	)	$	2,784
Corporate Bonds		21,762			10		(1,368	)		20,404		25,790			—		(2,122	)		23,668
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		34,526			—		(5,991	)		28,535		39,375			—		(6,227	)		33,148
FHLMC Certificates		9,028			—		(1,366	)		7,662		10,163			—		(1,482	)		8,681
FNMA Certificates		56,010			—		(10,602	)		45,408		61,359			—		(9,842	)		51,517
GNMA Certificates		88			—		—			88		104			—		—			104
Total available-for-sale securities	$	124,408		$	10	$	(19,448	)	$	104,970	$	139,781		$	—	$	(19,879	)	$	119,902

Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(40	)	$	24,960	$	25,000		$	—	$	(181	)	$	24,819
Corporate Bonds		32,500			12		(535	)		31,977		82,500			—		(2,691	)		79,809
Mortgage-Backed Securities:
Collateralized Mortgage Obligations ⁽¹⁾		186,634			—		(7,052	)		179,582		212,093			104		(5,170	)		207,027
FHLMC Certificates		3,229			—		(223	)		3,006		3,897			—		(244	)		3,653
FNMA Certificates		105,417			—		(5,114	)		100,303		118,944			—		(4,088	)		114,856
SBA Certificates		15,374			92		—			15,466		19,712			166		—			19,878
Allowance for Credit Losses		(216	)		—		—			—		(398	)		—		—			—
Total held-to-maturity securities	$	367,938		$	104	$	(12,964	)	$	355,294	$	461,748		$	270	$	(12,374	)	$	450,042

_{⁽¹⁾ Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.}

The following table presents the activity in the allowance for credit losses for held-to-maturity securities.

	For the Years Ended December 31,
	2024			2023
Allowance for credit losses on securities at beginning of the period	$	398		$	—
CECL adoption		—			662
Benefit for credit losses		(182	)		(264	)
Allowance for credit losses on securities at end of the period	$	216		$	398

Ponce Financial Group, Inc. and Subsidiaries
Loan Portfolio

	As of
	December 31,						September 30,						June 30,						March 31,						December 31,
	2024						2024						2024						2024						2023
	Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent			Amount			Percent
	(Dollars in thousands)
Mortgage loans:
1-4 family residential
Investor Owned	$	330,053			14.30	%	$	332,380			15.09	%	$	337,292			16.49	%	$	339,331			16.92	%	$	343,689			17.89	%
Owner-Occupied		142,363			6.17	%		145,065			6.59	%		147,485			7.21	%		150,842			7.52	%		152,311			7.93	%
Multifamily residential		670,159			29.04	%		678,029			30.78	%		545,323			26.66	%		545,825			27.22	%		550,559			28.65	%
Nonresidential properties		389,898			16.89	%		383,277			17.40	%		337,583			16.51	%		327,350			16.32	%		342,343			17.81	%
Construction and land		733,660			31.79	%		631,461			28.67	%		641,879			31.39	%		608,665			30.35	%		503,925			26.22	%
Total mortgage loans		2,266,133			98.19	%		2,170,212			98.53	%		2,009,562			98.26	%		1,972,013			98.33	%		1,892,827			98.50	%
Non-mortgage loans:
Business loans		40,849			1.77	%		28,499			1.29	%		30,222			1.48	%		26,664			1.33	%		19,779			1.03	%
Consumer loans (1)		1,038			0.04	%		4,021			0.18	%		5,305			0.26	%		6,741			0.34	%		8,966			0.47	%
Total non-mortgage loans		41,887			1.81	%		32,520			1.47	%		35,527			1.74	%		33,405			1.67	%		28,745			1.50	%
Total loans, gross		2,308,020			100.00	%		2,202,732			100.00	%		2,045,089			100.00	%		2,005,418			100.00	%		1,921,572			100.00	%
Net deferred loan origination costs		1,081						1,565						1,145						674						468
Allowance for credit losses on loans		(22,502	)					(23,966	)					(24,061	)					(24,664	)					(26,154	)
Loans, net	$	2,286,599					$	2,180,331					$	2,022,173					$	1,981,428					$	1,895,886

_{⁽¹⁾ As of September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, consumer loans include $3.0 million, $4.3 million, $5.7 million and $8.0 million, respectively, of microloans originated by the Bank. As of December 31, 2024, these microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Microloans Exposure (previously originated by the Bank under its arrangement with Grain)

Total Microloans Exposure as of December 31, 2024
(in thousands)
Microloans Receivable from Grain
Microloans originated – put back (inception-to-December 31, 2024)	$	23,903
Write-downs, net of recoveries (inception-to-date as of December 31, 2024)		(15,258	)
Cash receipts (inception-to-December 31, 2024)		(6,819	)
Grant/reserve		(1,826	)
Net receivable as of December 31, 2024	$	—
Microloans Receivables from Borrowers
Microloans receivable as of December 31, 2024	$	—
Allowance for credit losses on loans as of December 31, 2024		—
Microloans, net of allowance for credit losses on loans as of December 31, 2024	$	—
Investments
Investment in Grain	$	1,000
Investment write-off in Q3 2022		(1,000	)
Net investment as of December 31, 2024		—
Total exposure related to microloans as of December 31, 2024 ⁽¹⁾	$	—

_{⁽¹⁾ As of December 31, 2024, the remaining microloans were charged-off.}

Ponce Financial Group, Inc. and Subsidiaries
Allowance for Credit Losses on Loans

	For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in thousands)
Allowance for credit losses on loans at beginning of the period	$	23,966		$	24,061		$	24,664		$	26,154		$	27,414
Provision (benefit) for credit losses on loans		1,090			801			(120	)		(255	)		(126	)
Charge-offs:
Mortgage loans:
1-4 family residences
Investor owned		—			—			—			—			—
Owner occupied		—			—			—			—			—
Multifamily residences		—			—			—			—			—
Nonresidential properties		—			(7	)		—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		(232	)		(450	)		—			(52	)		(63	)
Consumer		(2,465	)		(634	)		(747	)		(1,302	)		(1,135	)
Total charge-offs		(2,697	)		(1,091	)		(747	)		(1,354	)		(1,198	)
Recoveries:
Non-mortgage loans:
Business		—			1			7			1			—
Consumer		143			194			257			118			64
Total recoveries		143			195			264			119			64
Net (charge-offs) recoveries		(2,554	)		(896	)		(483	)		(1,235	)		(1,134	)
Allowance for credit losses on loans at end of the period	$	22,502		$	23,966		$	24,061		$	24,664		$	26,154

Ponce Financial Group, Inc. and Subsidiaries
Deposits

	As of
	December 31,					September 30,					June 30,					March 31,					December 31,
	2024					2024					2024					2024					2023
	Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent			Amount		Percent
	(Dollars in thousands)
Demand ⁽¹⁾	$	169,178		8.98	%	$	182,737		9.78	%	$	178,125		11.09	%	$	191,541		12.07	%	$	185,151		12.28	%
Interest-bearing deposits:
NOW/IOLA accounts ⁽¹⁾		62,616		3.32	%		71,445		3.82	%		81,178		5.05	%		73,202		4.62	%		77,909		5.17	%
Money market accounts		636,219		33.75	%		660,168		35.30	%		502,255		31.27	%		482,344		30.42	%		432,735		28.70	%
Reciprocal deposits		130,677		6.93	%		94,145		5.03	%		109,945		6.85	%		97,718		6.16	%		96,860		6.42	%
Savings accounts		105,870		5.62	%		108,941		5.82	%		109,694		6.83	%		112,713		7.11	%		114,139		7.57	%
Total NOW, money market, reciprocal and savings accounts		935,382		49.62	%		934,699		49.97	%		803,072		50.00	%		765,977		48.31	%		721,643		47.86	%
Certificates of deposit of $250K or more ⁽³⁾		204,293		10.84	%		210,262		11.25	%		189,683		11.82	%		183,478		11.57	%		167,530		11.12	%
Brokered certificates of deposit ⁽²⁾		94,531		5.02	%		94,531		5.05	%		94,614		5.89	%		94,689		5.97	%		98,729		6.55	%
Listing service deposits ⁽²⁾		7,376		0.39	%		7,376		0.39	%		9,361		0.58	%		12,688		0.80	%		14,433		0.96	%
All other certificates of deposit less than $250K ⁽³⁾		474,104		25.15	%		440,718		23.56	%		331,242		20.62	%		337,411		21.28	%		320,134		21.23	%
Total certificates of deposit		780,304		41.40	%		752,887		40.25	%		624,900		38.91	%		628,266		39.62	%		600,826		39.86	%
Total interest-bearing deposits		1,715,686		91.02	%		1,687,586		90.22	%		1,427,972		88.91	%		1,394,243		87.93	%		1,322,469		87.72	%
Total deposits	$	1,884,864		100.00	%	$	1,870,323		100.00	%	$	1,606,097		100.00	%	$	1,585,784		100.00	%	$	1,507,620		100.00	%

	(1)	As of December 31, 2023, $58.2 million was reclassified from demand to NOW/IOLA accounts.
	(2)	As of December 31, 2023, there were $0.3 million in individual listing service deposits amounting to $250,000 or more. As of December 31, 2024, there were no individual listing service deposits amounting to $250,000 or more. All brokered certificates of deposit individually amounted to less than $250,000.
	(3)	As of September 30, 2024, June 30,2024, March 31, 2024 and December 31, 2023, $36.2 million, $33.5 million, $37.2 million and $35.4 million, respectively, were reclassified from all other certificates of deposit less than $250K to certificates of deposit of $250K or more.

Ponce Financial Group, Inc. and Subsidiaries
Borrowings

	December 31,							December 31,
	2024							2023
	Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate			Scheduled Maturity		Redeemable at Call Date		Weighted Average Rate
	(Dollars in thousands)
Overnight line of credit advance	$	25,000	$	25,000		4.69	%	$	—	$	—		—	%

Term advances ending:
2024		—		—		—			363,321		363,321		4.55
2025		100,000		100,000		4.48			50,000		50,000		4.41
2026		200,000		200,000		4.25			—		—		—
2027		212,000		212,000		3.44			212,000		212,000		3.44
2028		9,100		9,100		3.84			9,100		9,100		3.84
2029		50,000		50,000		3.35			50,000		50,000		3.35
	$	596,100	$	596,100		3.94	%	$	684,421	$	684,421		4.10	%

Ponce Financial Group, Inc. and Subsidiaries
Nonperforming Assets

	As of Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in thousands)
Non-accrual loans:
Mortgage loans:
1-4 family residential
Investor owned	$	436		$	436		$	436		$	399		$	793
Owner occupied		1,423			1,423			1,423			1,426			1,682
Multifamily residential		10,271			4,685			5,754			4,098			2,979
Nonresidential properties		—			824			828			441			—
Construction and land		14,158			8,907			8,907			10,277			10,759
Non-mortgage loans:
Business		343			180			396			146			165
Consumer		—			—			—			—			—
Total non-accrual loans (not including non-accruing modifications to borrowers experiencing financial difficulty) ⁽¹⁾	$	26,631		$	16,455		$	17,744		$	16,787		$	16,378

Non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾:
Mortgage loans:
1-4 family residential
Investor owned	$	279		$	278		$	277		$	270		$	270
Owner occupied		435			444			448			447			447
Multifamily residential		—			—			—			—			—
Nonresidential properties		—			—			—			—			—
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		—			—			—			—			—
Consumer		—			—			—			—			—
Total non-accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾		714			722			725			717			717
Total non-accrual loans ⁽²⁾	$	27,345		$	17,177		$	18,469		$	17,504		$	17,095

Accruing modifications to borrowers experiencing financial difficulty (1):
Mortgage loans:
1-4 family residential
Investor owned	$	1,807		$	1,821		$	1,830		$	1,850		$	2,112
Owner occupied		2,062			2,116			2,171			2,288			2,313
Multifamily residential		—			—			—			—			—
Nonresidential properties		652			672			707			748			757
Construction and land		—			—			—			—			—
Non-mortgage loans:
Business		215			222			—			—			—
Consumer		—			—			—			—			—
Total accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	4,736		$	4,831		$	4,708		$	4,886		$	5,182
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty ⁽¹⁾	$	32,081		$	22,008		$	23,177		$	22,390		$	22,277
Total non-performing loans to total gross loans		1.18	%		0.78	%		0.89	%		0.87	%		0.89	%
Total non-performing assets to total assets		0.90	%		0.57	%		0.65	%		0.62	%		0.62	%
Total non-performing assets and accruing modifications to borrowers experiencing financial difficulty as a percentage of total assets ⁽¹⁾		1.06	%		0.73	%		0.82	%		0.79	%		0.81	%

	(1)	Balances include both modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023, and previously existing troubled debt restructurings.
	(2)	Includes nonperforming mortgage loans held for sale.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

	For the Three Months Ended December 31,
	2024						2023
	Average						Average
	Outstanding				Average		Outstanding				Average
	Balance		Interest		Yield/Rate ⁽¹⁾		Balance		Interest		Yield/Rate ⁽¹⁾
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽²⁾	$	2,261,426	$	35,622	6.27	%	$	1,884,301	$	27,814	5.86	%
Securities ⁽³⁾		507,510		4,860	3.81	%		582,563		5,715	3.89	%
Other ⁽⁴⁾		179,701		2,404	5.32	%		96,070		1,421	5.87	%
Total interest-earning assets		2,948,637		42,886	5.79	%		2,562,934		34,950	5.41	%
Non-interest-earning assets		108,558						107,305
Total assets	$	3,057,195					$	2,670,239
Interest-bearing liabilities:
NOW/IOLA ^{(5) (6)}	$	68,776	$	119	0.69	%	$	75,926	$	181	0.95	%
Money market ⁽⁶⁾		761,130		8,329	4.35	%		474,306		5,495	4.60	%
Savings		109,217		27	0.10	%		116,600		28	0.10	%
Certificates of deposit		783,335		8,104	4.12	%		559,713		5,103	3.62	%
Total deposits		1,722,458		16,579	3.83	%		1,226,545		10,807	3.50	%
Advance payments by borrowers		15,147		1	0.03	%		15,033		2	0.05	%
Borrowings		573,316		5,576	3.87	%		678,235		6,944	4.06	%
Total interest-bearing liabilities		2,310,921		22,156	3.81	%		1,919,813		17,753	3.67	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁵⁾		191,355		—				211,434		—
Other non-interest-bearing liabilities		47,875		—				51,764		—
Total non-interest-bearing liabilities		239,230		—				263,198		—
Total liabilities		2,550,151		22,156				2,183,011		17,753
Total equity		507,044						487,228
Total liabilities and total equity	$	3,057,195			3.81	%	$	2,670,239			3.67	%
Net interest income			$	20,730					$	17,197
Net interest rate spread ⁽⁷⁾					1.98	%					1.74	%
Net interest-earning assets ⁽⁸⁾	$	637,716					$	643,121
Net interest margin ⁽⁹⁾					2.80	%					2.66	%
Average interest-earning assets to interest-bearing liabilities					127.60	%					133.50	%

	(1)	Annualized where appropriate.
	(2)	Loans include loans and mortgage loans held for sale, at fair value.
	(3)	Securities include available-for-sale securities and held-to-maturity securities.
	(4)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(5)	Includes reclassification of $55.7 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(6)	Includes $0.2 million of interest expense reclassified from money market to NOW/IOLA for the three months ended December 31, 2023.
	(7)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(8)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(9)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Average Balance Sheets

	For the Years Ended December 31,
	2024							2023
	Average							Average
	Outstanding				Average			Outstanding				Average
	Balance		Interest		Yield/Rate			Balance		Interest		Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans ⁽¹⁾	$	2,094,820	$	130,512		6.23	%	$	1,730,275	$	95,805		5.54	%
Securities ⁽²⁾		548,641		21,289		3.88	%		606,815		23,342		3.85	%
Other ⁽³⁾		192,403		10,836		5.63	%		119,923		6,720		5.60	%
Total interest-earning assets		2,835,864		162,637		5.74	%		2,457,013		125,867		5.12	%
Non-interest-earning assets		107,017							115,760
Total assets	$	2,942,881						$	2,572,773
Interest-bearing liabilities:
NOW/IOLA ^{(4) (5)}	$	74,796	$	662		0.89	%	$	70,993	$	1,314		1.85	%
Money market ⁽⁵⁾		654,521		30,148		4.61	%		424,160		17,132		4.04	%
Savings		111,028		107		0.10	%		121,550		116		0.10	%
Certificates of deposit		676,306		27,768		4.11	%		528,999		16,571		3.13	%
Total deposits		1,516,651		58,685		3.87	%		1,145,702		35,133		3.07	%
Advance payments by borrowers		14,034		7		0.05	%		14,869		8		0.05	%
Borrowings		670,982		27,465		4.09	%		633,116		25,460		4.02	%
Total interest-bearing liabilities		2,201,667		86,157		3.91	%		1,793,687		60,601		3.38	%
Non-interest-bearing liabilities:
Non-interest-bearing demand ⁽⁴⁾		191,155		—					241,510		—
Other non-interest-bearing liabilities		50,259		—					45,858		—
Total non-interest-bearing liabilities		241,414		—					287,368		—
Total liabilities		2,443,081		86,157					2,081,055		60,601
Total equity		499,800							491,718
Total liabilities and total equity	$	2,942,881				3.91	%	$	2,572,773				3.38	%
Net interest income			$	76,480						$	65,266
Net interest rate spread ⁽⁶⁾						1.83	%						1.74	%
Net interest-earning assets ⁽⁷⁾	$	634,197						$	663,326
Net interest margin ⁽⁸⁾						2.70	%						2.66	%
Average interest-earning assets to
interest-bearing liabilities						128.81	%						136.98	%

	(1)	Loans include loans and mortgage loans held for sale, at fair value.
	(2)	Securities include available-for-sale securities and held-to-maturity securities.
	(3)	Includes FHLBNY demand account, FHLBNY stock dividends and FRBNY demand deposits.
	(4)	Includes reclassification of $48.8 million average outstanding balances from non-interest bearing demand to NOW/IOLA for the three months ended December 31, 2023.
	(5)	Includes $1.3 million of interest expense reclassified from money market to NOW/IOLA for the year ended December 31, 2023.
	(6)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
	(7)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
	(8)	Net interest margin represents net interest income divided by average total interest-earning assets.

Ponce Financial Group, Inc. and Subsidiaries
Other Data

	As of
	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2023
Other Data
Common shares issued		24,886,711		24,886,711		24,886,711		24,886,711		24,886,711
Less treasury shares		925,497		1,067,248		1,074,979		1,096,214		1,101,191
Common shares outstanding at end of period		23,961,214		23,819,463		23,811,732		23,790,497		23,785,520

Book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20
Tangible book value per common share	$	11.71	$	11.74	$	11.45	$	11.29	$	11.20

Contact:
Sergio Vaccaro
Sergio.vaccaro@poncebank.net
718-931-9000

The MIL Network –

January 29, 2025

MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

FAIR LAWN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported a net loss of $21.2 million, or $0.21 per basic and diluted share, for the quarter ended December 31, 2024, as compared to net income of $6.6 million, or $0.06 per basic and diluted share, for the quarter ended December 31, 2023. The net loss for the quarter ended December 31, 2024 reflected lower non-interest income mainly due to the previously disclosed balance sheet repositioning transaction. As part of the Company’s strategy to improve future earnings and expand its net interest margin, the Company sold $352.3 million of debt securities available for sale during the fourth quarter of 2024, and the proceeds from the sale were used to fund loan growth of $72.9 million, purchase $78.1 million of higher yielding debt securities and prepay $170.0 million of higher cost borrowings. This balance sheet repositioning transaction resulted in a pre-tax loss on the sale of securities and extinguishment of debt of $37.9 million. The quarter ended December 31, 2024 results also reflected a higher provision for credit losses, partially offset by higher net interest income, mainly due to an increase in interest income, lower non-interest expense and lower income tax expense. For the quarter ended December 31, 2024, the Company reported core net income of $11.4 million, an increase of $1.3 million, or 12.4%, compared to core net income of $10.1 million for the quarter ended December 31, 2023. The benefit of the balance sheet repositioning transaction was modest during the fourth quarter, as the settlement of the transaction occurred late in the quarter. (Refer to “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of GAAP net income to core net income.)

For the year ended December 31, 2024, the Company reported a net loss of $11.7 million, or $0.11 per basic and diluted share, as compared to net income of $36.1 million, or $0.35 per basic and diluted share, for the year ended December 31, 2023. The year ended December 31, 2024 reflected lower net interest income, mainly due to an increase in interest expense, higher provision for credit losses and lower non-interest income due to loss on securities transactions resulting from the balance sheet repositioning transaction described above, partially offset by lower non-interest expense and lower income tax expense. Non-interest income for the year ended December 31, 2024 included a $34.6 million loss on the sale of securities and non-interest expense included a $3.4 million loss on extinguishment of debt.

Thomas J. Kemly, President and Chief Executive Officer commented: “The Company maintained a strong balance sheet and capital position, which will allow us to benefit from an improving operating environment. Additionally, our fourth quarter repositioning strategy should result in improved future earnings and net interest margin. We will continue to examine and implement prudent strategies that we believe will build a foundation for the future success of the Company and increased profitability.”

Results of Operations for the Three Months Ended December 31, 2024 and December 31, 2023

A net loss of $21.2 million was recorded for the quarter ended December 31, 2024, a decrease of $27.8 million, compared to net income of $6.6 million for the quarter ended December 31, 2023. The decrease in net income was primarily attributable to a $35.0 million decrease in non-interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $1.1 million increase in net interest income, a $1.4 million decrease in non-interest expense, and a $6.4 million decrease in income tax expense.

Net interest income was $46.4 million for the quarter ended December 31, 2024, an increase of $1.1 million, or 2.4%, from $45.3 million for the quarter ended December 31, 2023. The increase in net interest income was primarily attributable to a $6.1 million increase in interest income partially offset by a $5.0 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields. Market interest rates increased 100 basis points throughout the 2023 period and were subsequently reduced 100 basis points during the last four months of 2024. The increase in interest expense on deposits was driven by the higher rate environment coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products throughout the majority of the 2024 fiscal year. However, during the fourth quarter, competitive pressures eased, and deposits became easier to attract, resulting in a reduced cost of deposits. The decrease in interest expense on borrowings was also impacted by the lower interest rates for new borrowings, along with a decrease in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $84,000 for the quarter ended December 31, 2024, compared to $419,000 for the quarter ended December 31, 2023.

The average yield on loans for the quarter ended December 31, 2024 increased 22 basis points to 4.88%, as compared to 4.66% for the quarter ended December 31, 2023, as interest income was influenced by the interest rate increases that occurred in 2023 and loan growth. The average yield on securities for the quarter ended December 31, 2024 increased 41 basis points to 2.99%, as compared to 2.58% for the quarter ended December 31, 2023, as new securities purchased during 2024 were at higher interest rates. The average yield on other interest-earning assets for the quarter ended December 31, 2024 increased 36 basis points to 6.00%, as compared to 5.64% for the quarter ended December 31, 2023, due to an increase in the average balance of higher yielding Federal Home Loan Bank stock, as compared to average cash balances, which decreased in the 2024 period.

Total interest expense was $67.2 million for the quarter ended December 31, 2024, an increase of $5.0 million, or 8.0%, from $62.2 million for the quarter ended December 31, 2023. The increase in interest expense was primarily attributable to a 37 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, partially offset by a 31 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings. Interest expense on deposits increased $8.5 million or 19.6%, and interest expense on borrowings decreased $3.5 million, or 18.8%.

The Company’s net interest margin for the quarter ended December 31, 2024 increased 3 basis points to 1.88%, when compared to 1.85% for the quarter ended December 31, 2023. The weighted average yield on interest-earning assets increased 22 basis points to 4.61% for the quarter ended December 31, 2024 as compared to 4.39% for the quarter ended December 31, 2023. The average cost of interest-bearing liabilities increased 20 basis points to 3.38% for the quarter ended December 31, 2024 as compared to 3.18% for the quarter ended December 31, 2023. The net interest margin increased for the quarter ended December 31, 2024, as the increase in the average yield on interest-earning assets slightly outweighed the average cost of interest-bearing liabilities.

The provision for credit losses for the quarter ended December 31, 2024 was $2.9 million, an increase of $1.7 million, from $1.2 million for the quarter ended December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs totaling $1.4 million and an increase in loan performance qualitative factors.

Non-interest income was $(23.7) million for the quarter ended December 31, 2024, a decrease of $35.0 million, or 310.8%, from $11.2 million for the quarter ended December 31, 2023. The decrease was primarily attributable to the loss on securities transactions of $34.6 million resulting from the balance sheet repositioning transaction and a decrease in bank-owned life insurance income of $2.4 million, attributable to death benefits in 2023, partially offset by a $1.7 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities.

Non-interest expense was $46.6 million for the quarter ended December 31, 2024, a decrease of $1.4 million, or 2.9%, from $48.0 million for the quarter ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.9 million and a decrease in federal deposit insurance premiums of $3.2 million, partially offset by an increase in loss on the extinguishment of debt of $3.1 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The decrease in federal deposit insurance premiums was due to the 2023 quarter including a one-time Federal Deposit Insurance Corporation special assessment recorded in December 2023. During the quarter ended December 31, 2024, the Company prepaid $200.0 million in FHLB borrowings, inclusive of the $170.0 million as part of a balance sheet repositioning transaction which resulted in a $3.4 million loss on the extinguishment of debt.

Income tax benefit was $5.5 million for the quarter ended December 31, 2024, a decrease of $6.4 million, as compared to income tax expense of $865,000 for the quarter ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 20.7% and 11.6% for the quarters ended December 31, 2024 and 2023, respectively.

Results of Operations for the Years Ended December 31, 2024 and December 31, 2023

A net loss of $11.7 million was recorded for the year ended December 31, 2024, a decrease of $47.7 million, compared to net income of $36.1 million for the year ended December 31, 2023. The decrease in net income was primarily attributable to a $27.9 million decrease in net interest income, a $9.7 million increase in provision for credit losses and a $25.5 million decrease in non-interest income, partially offset by a $1.1 million decrease in non-interest expense, and a $14.2 million decrease in income tax expense.

Net interest income was $178.0 million for the year ended December 31, 2024, a decrease of $27.9 million, or 13.5%, from $205.9 million for the year ended December 31, 2023. The decrease in net interest income was primarily attributable to an $84.3 million increase in interest expense on deposits and borrowings, partially offset by a $56.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases in 2023. The increase in interest expense on deposits and borrowings was driven by these same rate increases coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products along with higher balances. The increase in interest expense on borrowings was also impacted by the increase in interest rates for new borrowings along with an increase in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $960,000 for the year ended December 31, 2024, compared to $817,000 for the year ended December 31, 2023.

The average yield on loans for the year ended December 31, 2024 increased 46 basis points to 4.90%, as compared to 4.44% for the year ended December 31, 2023, as interest income increased due to rising rates and loan growth. The average yield on securities for the year ended December 31, 2024 increased 40 basis points to 2.86%, as compared to 2.46% for the year ended December 31, 2023 as $124.6 million of higher yielding securities were purchased, and a number of adjustable rate securities tied to various indexes continued to reprice higher during the year. The average yield on other interest-earning assets for the year ended December 31, 2024 increased 73 basis points to 6.27%, as compared to 5.54% for the year ended December 31, 2023, due to the rise in interest rates, as noted above.

Total interest expense was $273.4 million for the year ended December 31, 2024, an increase of $84.3 million, or 44.6%, from $189.1 million for the year ended December 31, 2023. The increase in interest expense was primarily attributable to a 109 basis point increase in the average cost of interest-bearing deposits and an increase in the average balance of deposits, coupled with an increase in interest on borrowings of $7.1 million due to an 11 basis point increase in the cost of total borrowings and an increase in the average balance of borrowings.

The Company’s net interest margin for the year ended December 31, 2024 decreased 34 basis points to 1.82%, when compared to 2.16% for the year ended December 31, 2023. The weighted average yield on interest-earning assets for the year ended December 31, 2024 increased 47 basis points to 4.61%, as compared to 4.14% for the year ended December 31, 2023. The average cost of interest-bearing liabilities increased 92 basis points to 3.44% for the year ended December 31, 2024 as compared to 2.52% for the year ended December 31, 2023. The increase in yields for the year ended December 31, 2024 was due to the impact of market rate increases between periods, with rates decreasing just prior to the fourth quarter of 2024. The net interest margin decreased for the year ended December 31, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

The provision for credit losses for the year ended December 31, 2024 was $14.5 million, an increase of $9.7 million, from $4.8 million for the year ended December 31, 2023. The increase in provision for credit losses during the year was primarily due to net charge-offs totaling $9.6 million and an increase in loan performance qualitative factors.

Non-interest income was $1.9 million for the year ended December 31, 2024, a decrease of $25.5 million, or 93.1%, from $27.4 million for the year ended December 31, 2023. The decrease was primarily attributable to an increase in the loss on securities transactions of $25.0 million, and a decrease in bank-owned life insurance income of $2.8 million, attributable to death benefits in 2023, partially offset by a $1.9 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities.

Non-interest expense was $181.3 million for the year ended December 31, 2024, a decrease of $1.1 million, or 0.6%, from $182.4 million for the year ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $11.4 million, partially offset by an increase in professional fee of $4.3 million, an increase in merger-related expenses of $1.1 million and an increase in loss on extinguishment of debt of $3.1 million, resulting primarily from the repositioning transaction, and an increase in other non-interest expense of $2.0 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The increase in professional fees was primarily related to an increase in legal, regulatory and compliance-related costs while the increase in other non-interest expense related to swap transactions. During the quarter ended December 31, 2024, the Company prepaid $170.0 million of FHLB borrowings as part of the previously discussed balance sheet repositioning transaction which resulted in a $3.3 million loss on the extinguishment of debt.

Income tax benefit was $4.3 million for the year ended December 31, 2024, a decrease of $14.2 million, as compared to income tax expense of $10.0 million for the year ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 26.8% and 21.6% for the years ended December 31, 2024 and 2023, respectively.

Balance Sheet Summary

Total assets decreased $170.1 million, or 1.6%, to $10.5 billion at December 31, 2024 as compared to $10.6 billion at December 31, 2023. The decrease in total assets was primarily attributable to a decrease in cash and cash equivalents of $134.0 million, a decrease in debt securities available for sale of $67.6 million, and a decrease in Federal Home Loan Bank stock of $20.6 million, partially offset by an increase in loans receivable, net, of $37.5 million and an increase in other assets of $15.6 million.

Cash and cash equivalents decreased $134.0 million, or 31.7%, to $289.2 million at December 31, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $446.2 million, a decrease in borrowings of $448.1 million, and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from the sale of securities of $321.2 million, principal repayments on securities of $185.6 million, and repayments on loans receivable, and an increase in total deposits of $249.6 million.

Debt securities available for sale decreased $67.6 million, or 6.2%, to $1.0 billion at December 31, 2024 from $1.1 billion at December 31, 2023. The decrease was attributable to sales of securities with an amortized cost of $357.1 million which resulted in a realized loss of $35.9 million, and repayments on securities of $140.5 million, which was partially offset by purchases of securities of $404.7 million and a decrease in the gross unrealized loss on securities of $34.9 million. The Company sold predominantly fixed rate, low-yielding debt securities and used the proceeds to repay high costing borrowings and purchase higher-yielding debt securities to improve future net interest rate margin.

Loans receivable, net, increased $37.5 million, or 0.5%, to $7.9 billion at December 31, 2024 from $7.8 billion at December 31, 2023. Multifamily loans, construction loans, and commercial business loans increased $51.5 million, $30.5 million, and $89.0 million, respectively, partially offset by decreases in one-to-four family real estate loans, commercial real estate loans and home equity loans and advances of $81.9 million, $37.2 million and $7.6 million, respectively. The allowance for credit losses for loans increased $4.9 million to $60.0 million at December 31, 2024 from $55.1 million at December 31, 2023. During the year ended December 31, 2024, the increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors.

Federal Home Loan Bank stock decreased $20.6 million, or 25.5%, to $60.4 million at December 31, 2024 from $81.0 million at December 31, 2023. The decrease was due to the redemption of stock required upon repaying FHLB borrowings.

Other assets increased $15.6 million, or 5.1%, to $324.0 million at December 31, 2024 from $308.4 million at December 31, 2023, primarily due to a $14.3 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations.

Total liabilities decreased $210.1 million, or 2.2%, to $9.4 billion at December 31, 2024 from $9.6 billion at December 31, 2023. The decrease was primarily attributable to a decrease in borrowings of $448.1 million, or 29.3%, partially offset by an increase in total deposits of $249.6 million, or 3.2%. The $448.1 million decrease in borrowings was primarily driven by a net decrease in long-term borrowings of $170.0 million, coupled with a decrease in short-term borrowings of $237.8 million. The decrease in long-term borrowings was mainly attributable to the prepayment of $170.0 million of long-term borrowings as part of the balance sheet repositioning transaction as described above. The increase in total deposits primarily consisted of increases in non-interest-bearing and interest-bearing demand deposits and certificates of deposit of $669,000, $54.8 million, and $255.8 million, respectively, partially offset by decreases in money market and savings and club accounts of $13.8 million and $47.8 million, respectively.

Total stockholders’ equity increased $40.0 million, or 3.8%, to $1.1 billion at December 31, 2024 from $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to the recognition of $8.0 million in stock based compensation expense and an increase of $48.2 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes. These increases were partially offset by a net loss of $11.7 million, and the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

Asset Quality

The Company’s non-performing loans at December 31, 2024 totaled $21.7 million, or 0.28% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $9.1 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial business loans of $3.3 million and an increase in non-performing one-to-four family real estate loans of $5.6 million. The increase in non-performing commercial business loans primarily consists of two loans totaling $6.4 million at December 31, 2024, partially offset by the charge-off of a $3.7 million loan to a technology company during 2024. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 32 loans at December 31, 2024. Non-performing assets as a percentage of total assets totaled 0.22% at December 31, 2024 as compared to 0.12% at December 31, 2023.

For the quarter ended December 31, 2024, net charge-offs totaled $1.4 million, as compared to $173,000 in net charge-offs recorded for the quarter ended December 31, 2023. For the year ended December 31, 2024, net charge-offs totaled $9.6 million, as compared to $2.5 million in net charge-offs recorded for the year ended December 31, 2023. Net charge-offs for the year ended December 31, 2024 included charge-offs related to 17 commercial business loans totaling $9.2 million. Recoveries on previously charged-off loans for the quarter ended December 31, 2024, and the year ended December 31, 2024, totaled approximately $88,000 and $1.4 million, respectively.

The Company’s allowance for credit losses on loans was $60.0 million, or 0.76% of total gross loans, at December 31, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 69 branches. With over 215,000 accounts, the average deposit account balance was approximately $38,000 at December 31, 2024.

Deposit balances are summarized as follows:

	At December 31, 2024				At September 30, 2024
	Balance		Weighted Average Rate		Balance		Weighted Average Rate
	(Dollars in thousands)

Non-interest-bearing demand	$	1,438,030	—	%	$	1,406,152	—	%
Interest-bearing demand		2,021,312	2.19			1,980,298	2.41
Money market accounts		1,241,691	2.82			1,239,204	2.92
Savings and club deposits		652,501	0.75			649,858	0.79
Certificates of deposit		2,742,615	4.24			2,682,547	4.45
Total deposits	$	8,096,149	2.47	%	$	7,958,059	2.62	%

The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at December 31, 2024. As of December 31, 2024, the Company had immediate access to approximately $2.7 billion of funding, with additional unpledged loan collateral available to pledge is approximately $2.1 billion.

At December 31, 2024, the Company’s non-performing commercial real estate loans totaled $2.9 million, or 0.04%, of the total loans receivable loan portfolio balance.

The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

	At December 31, 2024
	(Dollars in thousands)
	Balance		% of Gross Loans		Weighted Average Loan to Value Ratio		Weighted Average Debt Service Coverage
Multifamily Real Estate	$	1,460,641	18.4	%	58.0	%	1.59	x

Owner Occupied Commercial Real Estate	$	688,341	8.7	%	53.3	%	2.22	x

Investor Owned Commercial Real Estate:
Retail / Shopping centers	$	506,544	6.4	%	51.6	%	1.50	x
Mixed Use		214,148	2.7		57.3		1.58
Industrial / Warehouse		383,585	4.8		54.7		1.69
Non-Medical Office		193,569	2.4		50.8		1.65
Medical Office		120,381	1.5		58.5		1.46
Single Purpose		96,907	1.2		52.3		3.13
Other		136,408	1.7		47.8		1.76
Total	$	1,651,542	20.9	%	53.2	%	1.69

Total Multifamily and Commercial Real Estate Loans	$	3,800,524	48.0	%	55.1	%	1.75	x

At December 31, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

Annual Meeting of Stockholders

On January 28, 2025, the Company also announced that its annual meeting of stockholders will be held on June 5, 2025.

About Columbia Financial, Inc.

The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 69 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

Forward-Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the successful implementation of our December 2024 balance sheet repositioning transaction; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In thousands)

	December 31,
		2024		2023
Assets	(Unaudited)
Cash and due from banks	$	289,113	$	423,140
Short-term investments		110		109
Total cash and cash equivalents		289,223		423,249

Debt securities available for sale, at fair value		1,025,946		1,093,557
Debt securities held to maturity, at amortized cost (fair value of $350,153, and $357,177 at December 31, 2024 and 2023, respectively)		392,840		401,154
Equity securities, at fair value		6,673		4,079
Federal Home Loan Bank stock		60,387		81,022

Loans receivable		7,916,928		7,874,537
Less: allowance for credit losses		59,958		55,096
Loans receivable, net		7,856,970		7,819,441

Accrued interest receivable		40,383		39,345
Office properties and equipment, net		81,772		83,577
Bank-owned life insurance		274,908		268,362
Goodwill and intangible assets		121,008		123,350
Other real estate owned		1,334		—
Other assets		324,049		308,432
Total assets	$	10,475,493	$	10,645,568

Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	8,096,149	$	7,846,556
Borrowings		1,080,600		1,528,695
Advance payments by borrowers for taxes and insurance		45,453		43,509
Accrued expenses and other liabilities		172,915		186,473
Total liabilities		9,395,117		9,605,233

Stockholders’ equity:
Total stockholders’ equity		1,080,376		1,040,335
Total liabilities and stockholders’ equity	$	10,475,493	$	10,645,568

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)

	Three Months Ended December 31,					Year Ended December 31,
		2024			2023		2024			2023
Interest income:	(Unaudited)					(Unaudited)
Loans receivable	$	96,202		$	91,744	$	382,266		$	343,770
Debt securities available for sale and equity securities		9,793			7,077		36,411			28,120
Debt securities held to maturity		2,479			2,370		9,966			9,708
Federal funds and interest-earning deposits		3,309			4,828		15,181			8,188
Federal Home Loan Bank stock dividends		1,843			1,531		7,602			5,192
Total interest income		113,626			107,550		451,426			394,978
Interest expense:
Deposits		51,943			43,429		202,383			125,162
Borrowings		15,256			18,782		71,061			63,940
Total interest expense		67,199			62,211		273,444			189,102

Net interest income		46,427			45,339		177,982			205,876

Provision for credit losses		2,876			1,155		14,451			4,787

Net interest income after provision for credit losses		43,551			44,184		163,531			201,089

Non-interest income:
Demand deposit account fees		1,809			1,330		6,507			5,145
Bank-owned life insurance		2,066			4,456		7,319			10,126
Title insurance fees		570			560		2,505			2,400
Loan fees and service charges		1,193			1,144		4,483			4,510
Loss on securities transactions		(34,595	)		—		(35,851	)		(10,847	)
Change in fair value of equity securities		2,169			446		2,594			695
Gain on sale of loans		81			154		906			1,214
Other non-interest income		2,991			3,159		13,431			14,136
Total non-interest income		(23,716	)		11,249		1,894			27,379

Non-interest expense:
Compensation and employee benefits		26,579			28,463		109,489			120,846
Occupancy		5,861			5,590		23,482			22,927
Federal deposit insurance premiums		1,829			5,015		7,581			8,639
Advertising		457			498		2,510			2,805
Professional fees		2,567			3,083		14,164			9,824
Data processing and software expenses		3,572			4,154		15,578			15,039
Merger-related expenses		928			326		1,665			606
Loss on extinguishment of debt		3,447			300		3,447			300
Other non-interest expense		1,356			570		3,419			1,431
Total non-interest expense		46,596			47,999		181,335			182,417

(Loss) income before income tax (benefit) expense		(26,761	)		7,434		(15,910	)		46,051

Income tax (benefit) expense		(5,538	)		865		(4,257	)		9,965

Net (loss) income	$	(21,223	)	$	6,569	$	(11,653	)	$	36,086

(Loss) earnings per share-basic	$	(0.21	)	$	0.06	$	(0.11	)	$	0.35
(Loss) earnings per share-diluted	$	(0.21	)	$	0.06	$	(0.11	)	$	0.35
Weighted average shares outstanding-basic		101,686,108			101,656,890		101,676,758			102,656,388
Weighted average shares outstanding-diluted		101,945,750			101,817,194		101,839,507			102,894,969

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields

	For the Three Months Ended December 31,
		2024							2023
	Average Balance			Interest and Dividends		Yield / Cost		Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,839,416		$	96,202	4.88	%	$	7,816,272		$	91,744	4.66	%
Securities		1,635,028			12,272	2.99	%		1,453,863			9,447	2.58	%
Other interest-earning assets		341,393			5,152	6.00	%		447,369			6,359	5.64	%
Total interest-earning assets		9,815,837			113,626	4.61	%		9,717,504			107,550	4.39	%
Non-interest-earning assets		874,522							854,857
Total assets	$	10,690,359						$	10,572,361

Interest-bearing liabilities:
Interest-bearing demand	$	2,027,003		$	13,686	2.69	%	$	2,000,406		$	12,308	2.44	%
Money market accounts		1,235,421			7,630	2.46	%		1,119,290			8,962	3.18	%
Savings and club deposits		649,686			1,209	0.74	%		714,664			846	0.47	%
Certificates of deposit		2,696,740			29,418	4.34	%		2,416,773			21,313	3.50	%
Total interest-bearing deposits		6,608,850			51,943	3.13	%		6,251,133			43,429	2.76	%
FHLB advances		1,298,686			15,102	4.63	%		1,494,794			18,592	4.93	%
Notes payable		—			—	—	%		916			23	9.96	%
Junior subordinated debentures		7,036			154	8.71	%		7,013			167	9.45	%
Total borrowings		1,305,722			15,256	4.65	%		1,502,723			18,782	4.96	%
Total interest-bearing liabilities		7,914,572		$	67,199	3.38	%		7,753,856		$	62,211	3.18	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,460,125							1,441,005
Other non-interest-bearing liabilities		241,582							247,545
Total liabilities		9,616,279							9,442,406
Total stockholders’ equity		1,074,080							1,129,955
Total liabilities and stockholders’ equity	$	10,690,359						$	10,572,361

Net interest income				$	46,427						$	45,339
Interest rate spread						1.23	%						1.21	%
Net interest-earning assets	$	1,901,265						$	1,963,648
Net interest margin						1.88	%						1.85	%
Ratio of interest-earning assets to interest-bearing liabilities		124.02	%						125.32	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields

	For the Years Ended December 31,
		2024							2023
	Average Balance			Interest and Dividends		Yield / Cost		Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,801,939		$	382,266	4.90	%	$	7,748,096		$	343,770	4.44	%
Securities		1,622,519			46,377	2.86	%		1,540,726			37,828	2.46	%
Other interest-earning assets		363,370			22,783	6.27	%		241,520			13,380	5.54	%
Total interest-earning assets		9,787,828		$	451,426	4.61	%		9,530,342		$	394,978	4.14	%
Non-interest-earning assets		865,684							840,215
Total assets	$	10,653,512						$	10,370,557

Interest-bearing liabilities:
Interest-bearing demand	$	1,986,215		$	55,360	2.79	%	$	2,183,333		$	37,774	1.73	%
Money market accounts		1,235,495			32,977	2.67	%		951,174			24,296	2.55	%
Savings and club deposits		667,836			5,130	0.77	%		793,303			2,231	0.28	%
Certificates of deposit		2,587,360			108,916	4.21	%		2,229,042			60,861	2.73	%
Total interest-bearing deposits		6,476,906			202,383	3.12	%		6,156,852			125,162	2.03	%
FHLB advances		1,454,674			70,418	4.84	%		1,315,401			62,398	4.74	%
Notes payable		—			—	—	%		22,780			918	4.03	%
Junior subordinated debentures		7,023			640	9.11	%		7,054			624	8.85	%
Other borrowings		55			3	5.45	%		—			—	—	%
Total borrowings		1,461,752			71,061	4.86	%		1,345,235			63,940	4.75	%
Total interest-bearing liabilities		7,938,658		$	273,444	3.44	%		7,502,087		$	189,102	2.52	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,420,104							1,539,354
Other non-interest-bearing liabilities		242,290							231,018
Total liabilities		9,601,052							9,272,459
Total stockholders’ equity		1,052,460							1,098,098
Total liabilities and stockholders’ equity	$	10,653,512						$	10,370,557

Net interest income				$	177,982						$	205,876
Interest rate spread						1.17	%						1.62	%
Net interest-earning assets	$	1,849,170						$	2,028,255
Net interest margin						1.82	%						2.16	%
Ratio of interest-earning assets to interest-bearing liabilities		123.29	%						127.04	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Components of Net Interest Rate Spread and Margin

	Average Yields/Costs by Quarter
	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Yield on interest-earning assets:
Loans	4.88	%	5.00	%	4.93	%	4.79	%	4.66	%
Securities	2.99		2.90		2.89		2.65		2.58
Other interest-earning assets	6.00		6.72		6.30		6.06		5.64
Total interest-earning assets	4.61	%	4.70	%	4.64	%	4.50	%	4.39	%

Cost of interest-bearing liabilities:
Total interest-bearing deposits	3.13	%	3.21	%	3.14	%	3.02	%	2.76	%
Total borrowings	4.65		4.87		4.92		4.98		4.96
Total interest-earning liabilities	3.38	%	3.52	%	3.49	%	3.38	%	3.18	%

Interest rate spread	1.23	%	1.18	%	1.15	%	1.12	%	1.21	%
Net interest margin	1.88	%	1.84	%	1.81	%	1.75	%	1.85	%

Ratio of interest-earning assets to interest-bearing liabilities	124.02	%	123.06	%	123.03	%	123.06	%	125.32	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Selected Financial Highlights

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

SELECTED FINANCIAL RATIOS⁽¹⁾:
Return on average assets	(0.79	)%	0.23	%	0.17	%	(0.04	)%	0.25	%
Core return on average assets	0.42	%	0.23	%	0.20	%	0.02	%	0.38	%
Return on average equity	(7.86	)%	2.32	%	1.77	%	(0.45	)%	2.31	%
Core return on average equity	4.09	%	2.29	%	2.06	%	0.18	%	3.56	%
Core return on average tangible equity	4.74	%	2.58	%	2.34	%	0.20	%	3.99	%
Interest rate spread	1.23	%	1.18	%	1.15	%	1.12	%	1.21	%
Net interest margin	1.88	%	1.84	%	1.81	%	1.75	%	1.85	%
Non-interest income to average assets	(0.88	)%	0.33	%	0.35	%	0.28	%	0.42	%
Non-interest expense to average assets	1.73	%	1.60	%	1.74	%	1.74	%	1.80	%
Efficiency ratio	205.17	%	78.95	%	86.83	%	91.96	%	84.82	%
Core efficiency ratio	73.68	%	79.14	%	85.34	%	88.39	%	76.93	%
Average interest-earning assets to average interest-bearing liabilities	124.02	%	123.06	%	123.03	%	123.06	%	125.32	%
Net charge-offs to average outstanding loans	0.07	%	0.14	%	0.03	%	0.26	%	0.01	%

^{(1) Ratios are annualized when appropriate.}

ASSET QUALITY:
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(Dollars in thousands)

Non-accrual loans	$	21,701		$	28,014		$	25,281		$	22,935		$	12,618
90+ and still accruing		—			—			—			—			—
Non-performing loans		21,701			28,014			25,281			22,935			12,618
Real estate owned		1,334			1,974			1,974			—			—
Total non-performing assets	$	23,035		$	29,988		$	27,255		$	22,935		$	12,618

Non-performing loans to total gross loans		0.28	%		0.36	%		0.33	%		0.30	%		0.16	%
Non-performing assets to total assets		0.22	%		0.28	%		0.25	%		0.22	%		0.12	%
Allowance for credit losses on loans (“ACL”)	$	59,958		$	58,495		$	57,062		$	55,401		$	55,096
ACL to total non-performing loans		276.29	%		208.81	%		225.71	%		241.56	%		436.65	%
ACL to gross loans		0.76	%		0.75	%		0.73	%		0.71	%		0.70	%

LOAN DATA:
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
	(In thousands)
Real estate loans:
One-to-four family	$	2,710,937		$	2,737,190		$	2,764,177		$	2,778,932		$	2,792,833
Multifamily		1,460,641			1,399,000			1,409,316			1,429,369			1,409,187
Commercial real estate		2,339,883			2,312,759			2,316,252			2,318,178			2,377,077
Construction		473,573			510,439			462,880			437,566			443,094
Commercial business loans		622,000			586,447			554,768			538,260			533,041
Consumer loans:
Home equity loans and advances		259,009			261,041			260,427			260,786			266,632
Other consumer loans		3,404			2,877			2,689			2,601			2,801
Total gross loans		7,869,447			7,809,753			7,770,509			7,765,692			7,824,665
Purchased credit deteriorated loans		11,686			11,795			12,150			14,945			15,089
Net deferred loan costs, fees and purchased premiums and discounts		35,795			35,642			36,352			34,992			34,783
Allowance for credit losses		(59,958	)		(58,495	)		(57,062	)		(55,401	)		(55,096	)
Loans receivable, net	$	7,856,970		$	7,798,695		$	7,761,949		$	7,760,228		$	7,819,441

CAPITAL RATIOS:
	December 31,
	2024⁽¹⁾		2023
Company:
Total capital (to risk-weighted assets)	14.20	%	14.08	%
Tier 1 capital (to risk-weighted assets)	13.40	%	13.32	%
Common equity tier 1 capital (to risk-weighted assets)	13.31	%	13.23	%
Tier 1 capital (to adjusted total assets)	10.02	%	10.04	%

Columbia Bank:
Total capital (to risk-weighted assets)	14.41	%	14.02	%
Tier 1 capital (to risk-weighted assets)	13.56	%	13.22	%
Common equity tier 1 capital (to risk-weighted assets)	13.56	%	13.22	%
Tier 1 capital (to adjusted total assets)	9.64	%	9.48	%

^{(1) Estimated ratios at December 31, 2024.}

Reconciliation of GAAP to Non-GAAP Financial Measures

Book and Tangible Book Value per Share
	December 31,
		2024			2023
	(Dollars in thousands)
Total stockholders’ equity	$	1,080,376		$	1,040,335
Less: goodwill		(110,715	)		(110,715	)
Less: core deposit intangible		(8,964	)		(11,155	)
Total tangible stockholders’ equity	$	960,697		$	918,465

Shares outstanding		104,759,185			104,918,905

Book value per share	$	10.31		$	9.92
Tangible book value per share	$	9.17		$	8.75

Reconciliation of Core Net Income
	Three Months Ended December 31,					Years Ended December 31,
		2024			2023		2024			2023
	(In thousands)
Net (loss) income	$	(21,223	)	$	6,569	$	(11,653	)	$	36,086
Add: loss on securities transactions, net of tax		28,952			—		30,082			9,249
Add: FDIC special assessment, net of tax		—			3,009		385			3,009
Add: severance expense from reduction in workforce, net of tax		—			—		67			1,390
Add: merger-related expenses, net of tax		777			288		1,468			529
Add: loss on extinguishment of debt, net of tax		2,885			265		2,885			265
Add: litigation expenses, net of tax		—			—		—			262
Core net income	$	11,391		$	10,131	$	23,234		$	50,790

Return on Average Assets
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Net (loss) income	$	(21,223	)	$	6,569		$	(11,653	)	$	36,086

Average assets	$	10,690,359		$	10,572,361		$	10,653,512		$	10,370,557

Return on average assets		(0.79	)%		0.25	%		(0.11	)%		0.35	%

Core net income	$	11,391		$	10,131		$	23,234		$	50,790

Core return on average assets		0.42	%		0.38	%		0.22	%		0.49	%

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Return on Average Equity
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Total average stockholders’ equity	$	1,074,080		$	1,129,955		$	1,052,460		$	1,098,098
Add: loss on securities transactions, net of tax		28,952			—			30,082			9,249
Add: FDIC special assessment, net of tax		—			3,009			385			3,009
Add: severance expense from reduction in workforce, net of tax		—			—			67			1,390
Add: merger-related expenses, net of tax		777			288			1,468			529
Add: loss on extinguishment of debt, net of tax		2,885			265			2,885			265
Add: litigation expenses, net of tax		—			—			—			262
Core average stockholders’ equity	$	1,106,694		$	1,133,517		$	1,087,347		$	1,112,802

Return on average equity		(7.86	)%		2.31	%		(1.11	)%		3.29	%

Core return on core average equity		4.09	%		3.56	%		2.14	%		4.56	%

Return on Average Tangible Equity
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Total average stockholders’ equity	$	1,074,080		$	1,129,955		$	1,052,460		$	1,098,098
Less: average goodwill		(110,715	)		(110,715	)		(110,715	)		(110,715	)
Less: average core deposit intangible		(9,311	)		(11,524	)		(10,119	)		(12,398	)
Total average tangible stockholders’ equity	$	954,054		$	1,007,716		$	931,626		$	974,985

Core return on average tangible equity		4.74	%		3.99	%		2.49	%		5.21	%

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Efficiency Ratios
	Three Months Ended December 31,						Years Ended December 31,
		2024			2023			2024			2023
	(Dollars in thousands)
Net interest income	$	46,427		$	45,339		$	177,982		$	205,876
Non-interest income		(23,716	)		11,249			1,894			27,379
Total income	$	22,711		$	56,588		$	179,876		$	233,255

Non-interest expense	$	46,596		$	47,999		$	181,335		$	182,417

Efficiency ratio		205.17	%		84.82	%		100.81	%		78.20	%

Non-interest income	$	(23,716	)	$	11,249		$	1,894		$	27,379
Add: loss on securities transactions		34,595			—			35,851			10,847
Core non-interest income	$	10,879		$	11,249		$	37,745		$	38,226

Non-interest expense	$	46,596		$	47,999		$	181,335		$	182,417
Less: FDIC special assessment		—			(3,840	)		(439	)		(3,840	)
Less: severance expense from reduction in workforce		—			—			(74	)		(1,605	)
Less: merger-related expenses		(928	)		(326	)		(1,665	)		(606	)
Less: loss on extinguishment of debt		(3,447	)		(300	)		(3,447	)		(300	)
Less: litigation expenses		—			—			—			(317	)
Core non-interest expense	$	42,221		$	43,533		$	175,710		$	175,749

Core efficiency ratio		73.68	%		76.93	%		81.45	%		72.00	%

Columbia Financial, Inc.
Investor Relations Department
(833) 550-0717

The MIL Network –

January 29, 2025

MIL-OSI: Synaptics Accelerates Edge AI Strategy with New Broadcom Agreement

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Synaptics^® Incorporated (Nasdaq: SYNA) announced it has accelerated its Edge AI strategy by signing a definitive licensing agreement with Broadcom that includes Wi-Fi^® 8, ultra-wideband (UWB), Wi-Fi 7, advanced Bluetooth^®, and next-generation GPS/GNSS products and technology for IoT and Android™ ecosystem.

Strategic benefits:

Accelerates Edge AI strategy: Solidifies Synaptics’ leadership position for end-to-end AI Internet of Things (IoT) connectivity and expands our ability to service the Android™ ecosystem.

Solidifies Synaptics’ Veros™ wireless product roadmap for next 5+ years: Adds Wi-Fi 8 combo, UWB, GPS/GNSS, as well as Wi-Fi 7 combo products.

Increases addressable market: Expands serviceable wireless market to include augmented and virtual reality (AR/VR) platforms, Android™ smartphones, and consumer audio.

Strengthens wireless team: Establishes one of the largest and most highly qualified teams in cutting-edge wireless research and development.

Accretive to financials: Expected to add $40+ million in annualized sales and to be immediately accretive to non-GAAP EPS.

“Our wireless technology and capabilities are cornerstones of our success in IoT markets,” said Michael Hurlston, President and CEO of Synaptics. “We are now developing this expertise to enable ecosystems with centralized control and seamless connectivity to a rapidly growing array of Edge AI devices. Our platform history, proven track record, and strategy uniquely position us to integrate Broadcom’s technology and fully deliver on the potential of IoT connectivity.”

Key technology focus and growth:

Wi-Fi 8: Reinforces and builds on Synaptics’ field-proven Wi-Fi/Bluetooth combo solutions for the IoT, including Wi-Fi 7. The rapid incorporation of Wi-Fi 8 gives us first-mover advantage in new markets such as automotive and positions Synaptics among the leaders deploying this technology for AR/VR and Android™ smartphones.
UWB: Allows Synaptics to participate in a growing market for precise location tracking and complements our market-leading Wi-Fi combo connectivity.
GPS/GNSS: Synaptics is already among the leaders in GPS/GNSS for the IoT. The widely acclaimed SYN4778 is a prime example. Next-generation devices will build upon this success through lower power, greater accuracy, reduced system-level cost and complexity, and more functionality. These enhancements will allow Synaptics to further penetrate markets such as wearables, navigation devices, and asset trackers.

The all-cash transaction is expected to close on January 30, 2025.

Synaptics will provide further details on the transaction at its scheduled fiscal Q2 2025 investor conference call on February 6^th, 2025.

About Synaptics Incorporated
Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is the force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, X, and Facebook, or visit www.synaptics.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include those that address activities, events or developments that the Company or its management believes or anticipates may occur in the future. All forward-looking statements are based upon our current expectations or various assumptions. Our expectations and assumptions are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including risks related to our ability to consummate and realize anticipated benefits from the transaction and our ability to grow sales and expand into the serviceable wireless market as expected, and other risks as identified in the “Risk Factors,” “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of our most recent Annual Report on Form 10-K and our most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in our Securities and Exchange Commission reports. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we assume no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.
For further information, please contact:

Investor Relations
Munjal Shah
Synaptics
+1-408-518-7639
munjal.shah@synaptics.com

Media Contact
Patrick Mannion
Synaptics
+1-631-678-1015
patrick.mannion@synaptics.com

The MIL Network –

January 29, 2025

MIL-OSI: CNB Financial Corporation Reports Fourth Quarter and Full-Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

CLEARFIELD, Pa., Jan. 28, 2025 (GLOBE NEWSWIRE) — CNB Financial Corporation (“Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the three and twelve months ended December 31, 2024.

Executive Summary

Net income available to common shareholders (“earnings”) was $14.0 million, or $0.66 per diluted share, for the three months ended December 31, 2024, compared to earnings of $12.9 million, or $0.61 per diluted share, for the three months ended September 30, 2024. The quarterly increase was a result of an increase in net interest income combined with a reduction in non-interest expense, partially offset by a decrease in non-interest income, as discussed in more detail below. The increase in fourth quarter 2024 earnings and diluted earnings per share when compared to earnings of $12.9 million, or $0.62 per diluted share, in the quarter ended December 31, 2023 was primarily due to increases in both net interest income and non-interest income, coupled with a decrease in non-interest expense, partially offset by an increase in the provision for credit losses.
Earnings were $50.3 million, or $2.39 per diluted share, for the twelve months ended December 31, 2024, compared to earnings of $53.7 million, or $2.55 per diluted share, for the twelve months ended December 31, 2023. The decrease in earnings and diluted earnings per share comparing the twelve months ended December 31, 2024 to the twelve months ended December 31, 2023 was primarily due to the rise in deposit costs year over year, as discussed in more detail below.
At December 31, 2024, loans totaled $4.5 billion excluding the balances of syndicated loans. This adjusted total of $4.5 billion in loans represented a quarterly increase of $6.6 million, or 0.15% (0.58% annualized), compared to the same adjusted total loans measured as of September 30, 2024, and a year-over-year increase of $169.4 million, or 3.88%, compared to the same adjusted total loans measured as of December 31, 2023. The increase in loans for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 was primarily driven by commercial and residential real estate growth across our regions, including growth in CNB’s Private Banking division. This growth was partially offset by a larger volume of loan payoffs during the quarter. The year-over-year growth in loans as of December 31, 2024 compared to loans as of December 31, 2023 resulted primarily from growth in commercial and residential real estate loans in the Corporation’s more recent expansion markets of Cleveland, OH and Roanoke, VA. Additional growth occurred in commercial and residential real estate loans in the Columbus, OH market, commercial industrial loans in the Erie, PA market, and residential real estate loans in CNB Bank’s Private Banking division.
- At December 31, 2024, the Corporation’s balance sheet reflected an increase in syndicated lending balances of $10.4 million compared to September 30, 2024. The increase in syndicated lending balances was the result of the Corporation identifying loans with the combination of meeting the Corporation’s traditionally disciplined high credit quality standards, and with favorable yields versus investment alternatives. Year over year, the Corporation’s balance sheet reported a decrease in syndicated lending balances of $28.8 million compared to December 31, 2023, resulting from scheduled paydowns or early payoffs of certain syndicated loans. The syndicated loan portfolio totaled $79.9 million, or 1.73% of total loans, at December 31, 2024, compared to $69.5 million, or 1.51% of total loans, at September 30, 2024 and $108.7 million, or 2.43% of total loans, at December 31, 2023. The Corporation closely manages the level and composition of its syndicated loan portfolio to ensure it continues to provide a high credit quality, profitable use of excess liquidity to complement the Corporation’s loan growth from its in-market customer relationships.
At December 31, 2024, total deposits were $5.4 billion, reflecting a quarterly increase of $154.4 million, or 2.96% (11.78% annualized), compared to September 30, 2024, and a year-over-year increase of $372.6 million, or 7.45%, compared to total deposits measured as of December 31, 2023. The increase in deposit balances compared to September 30, 2024 was primarily attributable to an increase in retail and business savings and retail time deposits. Additional deposit and liquidity profile details were as follows:
- At December 31, 2024, the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 27.71% of total CNB Bank deposits. However, when excluding $101.9 million of affiliate company deposits and $429.0 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $986.0 million, or approximately 18.01% of total CNB Bank deposits as of December 31, 2024.
  - The level of adjusted uninsured deposits at December 31, 2024 was relatively unchanged compared to the level at September 30, 2024, when the total estimated uninsured deposits for CNB Bank were approximately $1.5 billion, or approximately 28.50% of total CNB Bank deposits. Excluding $103.1 million of affiliate company deposits and $462.7 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $950.6 million, or approximately 17.87% of total CNB Bank deposits as of September 30, 2024.
- At December 31, 2024, the average deposit balance per account for CNB Bank was approximately $34 thousand, which has remained consistently at this level for an extended period. CNB Bank has experienced increases in the volume of business deposits, as well as retail customer household deposits, including those that continue to be added after the 2023 launches of (i) CNB Bank’s “At Ease” account, a service for U.S. service member and veteran families, and (ii) CNB Bank’s women-focused banking division, Impressia Bank.
- At December 31, 2024, the Corporation had $375.0 million of cash equivalents held in CNB Bank’s interest-bearing deposit account at the Federal Reserve. These excess funds, when combined with collective contingent liquidity resources of $4.6 billion including (i) available borrowing capacity from the Federal Home Bank of Pittsburgh (“FHLB”) and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, resulted in the total on-hand and contingent liquidity sources for the Corporation as of December 31, 2024 to be approximately 5.0 times the estimated amount of adjusted uninsured deposit balances discussed above.
At December 31, 2024, September 30, 2024 and December 31, 2023, the Corporation had no outstanding short-term borrowings from the FHLB or the Federal Reserve’s Discount Window.
At December 31, 2024, the Corporation’s pre-tax net unrealized losses on available-for-sale and held-to-maturity securities totaled $74.8 million, or 12.25% of total shareholders’ equity, compared to $62.5 million, or 10.30% of total shareholders’ equity, at September 30, 2024 and $82.2 million, or 14.40% of total shareholders’ equity, at December 31, 2023. The change in unrealized losses during the fourth quarter 2024 was primarily due to changes in the yield curve compared to the third quarter of 2024, coupled with the Corporation’s scheduled bond maturities, which were all realized at par. Importantly, all regulatory capital ratios for the Corporation would still exceed regulatory “well-capitalized” levels as of December 31, 2024, September 30, 2024, and December 31, 2023 if the net unrealized losses at the respective dates were fully recognized. Additionally, the Corporation maintained approximately $100.7 million of liquid funds at its holding company, which more than covers the $74.8 million in unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to CNB Bank, if necessary.
Total nonperforming assets were approximately $59.5 million, or 0.96% of total assets, as of December 31, 2024, compared to $42.0 million, or 0.70% of total assets, as of September 30, 2024, and $31.8 million, or 0.55% of total assets, as of December 31, 2023. The increase in nonperforming assets for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was primarily due to one commercial multifamily relationship totaling $20.4 million with a specific reserve balance of $885 thousand. Management does not believe there is a risk of significant additional loss exposure beyond the specific reserves related to this loan relationship and is actively working with the borrower and their real estate broker to facilitate the sale of the property. The increase in non-performing assets at December 31, 2024 compared to December 31, 2023 was due to the loan relationship discussed above, as well as certain commercial and industrial and owner-occupied commercial real estate relationships as previously disclosed in the second quarter of 2024 and a commercial relationship (consisting of various loan types) in the third quarter of 2024. For the three months ended December 31, 2024, net loan charge-offs were $2.1 million, or 0.19% (annualized) of average total loans and loans held for sale, compared to $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2024, and $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended December 31, 2023. The increase in net loan charge-offs during the quarter ended December 31, 2024 was primarily related to (i) an owner-occupied commercial real estate relationship with a charge-off of $750 thousand (remaining balance of approximately $3.8 million with specific reserves of $1.4 million), and (ii) a nonowner-occupied commercial real estate relationship for $625 thousand (no remaining balance).
Pre-provision net revenue (“PPNR”), a non-GAAP measure, was $21.6 million for the three months ended December 31, 2024, compared to $19.7 million and $18.4 million for the three months ended September 30, 2024 and December 31, 2023, respectively.¹ The fourth quarter 2024 PPNR, when compared to the third quarter of 2024, reflected increases in net interest income and reductions in non-interest expense, partially offset by a reduction in quarterly non-interest income. The increase in PPNR for the three months ended December 31, 2024, compared to the three months ended December 31, 2023 was primarily attributable to the increases in net interest income and non-interest income. PPNR was $76.6 million for the twelve months ended December 31, 2024 compared to $77.8 million for the twelve months ended December 31, 2023.¹ The decrease in PPNR for the twelve months ended December 31, 2024 compared to the twelve months ended December 31, 2023 was primarily attributable to the significant year-over-year increase in deposit costs, coupled with increases in certain personnel costs (primarily from new offices and personnel added in the recently added expansion markets of Cleveland, OH and Roanoke, VA). Also, the Corporation incurred additional technology expenses for the recently completed full implementation of certain franchise-wide business development and customer relationship management applications.

¹ This release contains references to certain financial measures that are not defined under U.S. Generally Accepted Accounting Principles (“GAAP”). Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. A reconciliation of these non-GAAP financial measures is provided in the “Reconciliation of Non-GAAP Financial Measures” section.

Commenting on the Corporation’s positive quarterly results, Michael Peduzzi, President and CEO of both the Corporation and CNB Bank, stated, “CNB’s performance for the fourth quarter of 2024 continued the favorable trend of increased earnings for each of the most recent three quarters. This favorable earnings trend is the result of a continued implementation of the fundamental strategic initiatives that we continue to focus on – deepening existing customer relationships while adding new clients in both interest-earning and fee-based activities, remaining committed to our traditionally disciplined loan and investment underwriting standards, employing risk-based and market-relevant loan and deposit pricing, and continuing solid risk measurement and management practices. While we remain confident in the continued growth and increasing profitability of our current multi-state core franchise, we are very excited by the prospect of expanding our business development model across all of our financial services, and realizing even greater back-office efficiencies of operating scale, with our recently announced plan to add over $2 billion in assets with our intended acquisition of ESSA Bancorp, Inc. (“ESSA Bancorp”) and its banking subsidiary, ESSA Bank & Trust, based primarily in northeastern Pennsylvania (collectively, “ESSA”).

With full consideration of the impact of the prospective merger and the additional skilled employees and resources from both internal leadership development efforts and the ESSA employee base, we remain intently focused on achieving qualitative growth across our commercial, retail, and wealth management activities, while controlling the growth in staffing levels and overhead costs. Our collective Board and employee team is committed to our core strategic principles, including a focus on delivering increasing profitable and desirable financial services, while striving to most effectively realize the accretive value of our prospective acquisition, for the mutually beneficial and sustainable success of our valued investors and growing client base across our expanding franchise.”

Other Balance Sheet Highlights

Book value per common share was $26.34 at December 31, 2024, reflecting an increase from $26.13 at September 30, 2024 and $24.57 at December 31, 2023. Tangible book value per common share, a non-GAAP measure, was $24.24 as of December 31, 2024, reflecting an increase of $0.21, or 3.48% (annualized) from $24.03 as of September 30, 2024 and a year-over-year increase of $1.78, or 7.93%, from $22.46 as of December 31, 2023.¹ The increases in book value per common share and tangible book value per common share from September 30, 2024 to December 31, 2024 were primarily due to a $10.2 million increase in retained earnings, partially offset by a $6.3 million increased in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the fourth quarter of 2024. The increases in book value per common share and tangible book value per common share from December 31, 2023 to December 31, 2024 were primarily due to (i) a $35.4 million increase in retained earnings over the twelve months ended December 31, 2024, (ii) the Corporation’s repurchase of 23,988 common shares at a weighted average price of $18.38 in the second quarter of 2024, and (iii) a $2.5 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months.

Loan Portfolio Profile

As part of its lending policy and risk management activities, the Corporation tracks lending exposure by industry classification and type to determine potential risks associated with industry concentrations, and if any concentration risk issues could lead to additional credit loss exposure. In the current post-pandemic and relatively inflationary economic environment, the Corporation has continued to evaluate its exposure to the office, hospitality, and multifamily industries within its commercial real estate portfolio. Even given the Corporation’s historically sound underwriting protocols and high credit quality standards for borrowers in the commercial real estate industry segments, the Corporation monitors numerous relevant sensitivity elements, including occupancy, loan-to-value, absorption and cap rates, debt service coverage and covenant compliance, and developer/lessor financial strength both in the project and globally. At December 31, 2024, the Corporation had the following key metrics related to its office, hospitality and multifamily portfolios:
- Commercial office loans:
  - There were 112 outstanding loans, totaling $113.7 million, or 2.47% of total Corporation loans outstanding;
  - There were no nonaccrual commercial office loans at December 31, 2024;
  - There were no past due commercial office loans at December 31, 2024; and
  - The average outstanding balance per commercial office loan was $1.0 million.
- Commercial hospitality loans:
  - There were 170 outstanding loans, totaling $321.6 million, or 6.98% of total Corporation loans outstanding;
  - There were no nonaccrual commercial hospitality loans at December 31, 2024;
  - There were no past due commercial hospitality loans at December 31, 2024; and
  - The average outstanding balance per commercial hospitality loan was $1.9 million.
- Commercial multifamily loans:
  - There were 225 outstanding loans, totaling $367.6 million, or 7.98% of total Corporation loans outstanding;
  - There were two nonaccrual commercial multifamily loan that totaled $20.7 million, or 5.62% of total multifamily loans outstanding. As previously discussed, one customer relationship did have a specific reserve of $885 thousand, while the other customer relationship did not have a related specific loss reserve at December 31, 2024;
  - There were three past due commercial multifamily loans that totaled $21.1 million, or 5.75% of total commercial multifamily loans outstanding at December 31, 2024; and
  - The average outstanding balance per commercial multifamily loan was $1.6 million.

The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be high volatility commercial real estate (“HVCRE”) credits.

Performance Ratios

Annualized return on average equity was 9.79% for the three months ended December 31, 2024, compared to 9.28% and 9.97% for the three months ended September 30, 2024 and December 31, 2023, respectively. Return on average equity was 9.21% for the twelve months ended December 31, 2024 compared to 10.54% for the twelve months ended December 31, 2023.
Annualized return on average tangible common equity, a non-GAAP measure, was 10.90% for the three months ended December 31, 2024, compared to 10.33% and 11.27% for the three months ended September 30, 2024 and December 31, 2023, respectively.¹ Return on average tangible common equity, a non-GAAP measure, was 10.25% for the twelve months ended December 31, 2024 compared to 11.98% for the twelve months ended December 31, 2023.¹
The Corporation’s efficiency ratio was 63.68% for the three months ended December 31, 2024, compared to 66.34% and 67.66% for the three months ended September 30, 2024 and December 31, 2023, respectively. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 63.02% for the three months ended December 31, 2024, compared to 65.58% and 66.93% for the three months ended September 30, 2024 and December 31, 2023, respectively.¹ The decrease for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was primarily driven by an increase in net interest income, coupled with lower non-interest expenses, primarily due to decreases in salaries and benefits, as discussed in more detail below.
The Corporation’s efficiency ratio was 66.20% for the twelve months ended December 31, 2024, compared to 65.13% for the twelve months ended December 31, 2023. The efficiency ratio on a fully tax-equivalent basis, a non-GAAP ratio, was 65.47% for the twelve months ended December 31, 2024, compared to 64.45% the twelve months ended December 31, 2023.¹

Revenue

Total revenue (net interest income plus non-interest income) was $59.4 million for the three months ended December 31, 2024, an increase when compared to $58.5 million and $56.8 million for the three months ended September 30, 2024 and December 31, 2023, respectively.
- Net interest income was $49.0 million for the three months ended December 31, 2024, compared to $47.5 million and $47.7 million for the three months ended September 30, 2024 and December 31, 2023, respectively. When comparing the fourth quarter of 2024 to the third quarter of 2024, the increase in net interest income of $1.6 million, or 3.28% (13.05% annualized), was primarily driven by targeted interest-bearing deposit rate decreases as a result of the Federal Reserve rate decreases since mid-September 2024.
- Net interest margin was 3.44%, 3.43% and 3.54% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.43%, 3.42% and 3.51% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.¹
  - The yield on earning assets of 5.84% for the three months ended December 31, 2024 decreased 14 basis points from September 30, 2024 and increased 2 basis points from December 31, 2023. The decrease in yield compared to September 30, 2024 was attributable to the net impact of declining interest rates on floating-rate loans as a result of the Federal Reserve decreases to the Prime rate (upon which the majority of the Corporation’s floating rate loans are indexed).
  - The cost of interest-bearing liabilities of 3.03% for the three months ended December 31, 2024 decreased 18 basis points from September 30, 2024 and increased 14 basis points from December 31, 2023. When comparing the fourth quarter of 2024 to the third quarter of 2024, the decrease in the cost of interest-bearing liabilities is primarily the result of the Corporation’s targeted interest-bearing deposit rate decreases in response to the Federal Reserve rate decreases since mid-September 2024.
Total revenue was $226.6 million for the twelve months ended December 31, 2024 compared to $223.2 million for the twelve months ended December 31, 2023.
- Net interest income was $187.5 million for the twelve months ended December 31, 2024 compared to $189.8 million for the twelve months ended December 31, 2023. When comparing the twelve months ended December 31, 2024 to the twelve months ended December 31, 2023, the decrease in net interest income of $2.4 million, or 1.24%, was due to an increase in the Corporation’s interest expense, as a result of targeted interest-bearing deposit rate increases to ensure both deposit growth and retention, more than offsetting the interest income growth from both year-over-year loan growth and the impact of higher interest rates for much of the 2024 year resulting in greater income on loans, coupled with a higher average balance of earnings on excess liquidity maintained as interest-bearing deposits with the Federal Reserve.
- Net interest margin was 3.41% and 3.63% for the twelve months ended December 31, 2024 and 2023, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.39% and 3.61% for the twelve months ended December 31, 2024 and 2023, respectively.¹
  - The yield on earning assets of 5.88% for the twelve months ended December 31, 2024 increased 31 basis points from the twelve months ended December 31, 2023. The increase in yield compared to December 31, 2023 was attributable to the net benefit of higher interest rates on both variable-rate loans and new loan production.
  - The cost of interest-bearing liabilities of 3.11% for the twelve months ended December 31, 2024 increased 62 basis points from the twelve months ended December 31, 2023 primarily as a result of the Corporation’s targeted interest-bearing deposit rate increases for deposit retention and growth initiatives given the competitive environment resulting from the numerous Federal Reserve rate hikes since the first quarter of 2022 that did not start to have some easing measures until late in 2024.
Total non-interest income was $10.3 million for the three months ended December 31, 2024 compared to $11.0 million and $9.1 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The three months ended December 31, 2024 included increases in net realized and unrealized losses on equity securities compared to the three months ended September 30, 2024. The increase in fourth quarter 2024 non-interest income compared to the three months ended December 31, 2023 was primarily due to increased wealth and asset management fees and higher pass-through income from small business investment companies (“SBICs”), partially offset by an increase in net realized and unrealized losses on equity securities.
Total non-interest income was $39.1 million for the twelve months ended December 31, 2024 compared to $33.3 million for the twelve months ended December 31, 2023. This increase was primarily due to higher pass-through income from SBICs coupled with an increase in net realized and unrealized gains on equity securities and an increase in wealth and asset management fees.

Non-Interest Expense

For the three months ended December 31, 2024 total non-interest expense was $37.8 million, compared to $38.8 million and $38.5 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The decrease of $979 thousand, or 2.52%, from the three months ended September 30, 2024, was primarily due to a decrease in salaries and benefits. The decrease in salaries and benefits resulted primarily from a decrease in incentive compensation accruals (which are based on various components of the Corporation’s financial performance for the year), coupled with the timing of retirement plan contribution accruals and lower supplemental executive retirement plan accruals with the departure of an executive during the fourth quarter, as previously disclosed. The $645 thousand decrease in non-interest expense compared to the three months ended December 31, 2023 was primarily due to lower salaries and benefits driven by reduced incentive compensation accruals, along with a decrease in quarterly advertising expense. These decreases were partially offset by higher card processing and interchange expenses resulting from fourth quarter 2023 accrual adjustments related to changes in the Corporation’s cardholder rewards program.
For the twelve months ended December 31, 2024 total non-interest expense was $150.0 million, compared to $145.3 million for the twelve months ended December 31, 2023. The increase of $4.7 million, or 3.21%, from the twelve months ended December 31, 2023 was primarily a result of an increase in salaries and benefits and technology expenses The increase in salaries and benefits was driven by an increase in personnel costs related to annual merit increases and growth in the Corporation’s staff and new offices in its expansion markets (Cleveland, OH and Roanoke, VA), while the increase in technology was primarily due to usage and licensing increases in year-over-year investments in applications aimed at enhancing both customer online banking capabilities, customer call center communications, and in-branch technology delivery channels.

Income Taxes

Income tax expense for the three months ended December 31, 2024 was $3.6 million, representing a 19.14% effective tax rate, compared to $3.3 million, representing an 19.31% effective tax rate, for the three months ended September 30, 2024 and $3.2 million, representing a 18.45% effective tax rate, for the three months ended December 31, 2023. Income tax expense for the twelve months ended December 31, 2024 was $12.8 million, representing an 18.98% effective tax rate compared to $13.8 million, representing a 19.22% effective tax rate, for the twelve months ended December 31, 2023.

Asset Quality

Based upon the addition of one larger nonaccrual loan relationship in the fourth quarter of 2024 as discussed above, total nonperforming assets were approximately $59.5 million, or 0.96% of total assets, as of December 31, 2024, compared to $42.0 million, or 0.70% of total assets, as of September 30, 2024, and $31.8 million, or 0.55% of total assets, as of December 31, 2023.
The allowance for credit losses measured as a percentage of total loans was 1.03% as of December 31, 2024 compared to 1.02% as of September 30, 2024 and 1.03% as of December 31, 2023. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 84.08% as of December 31, 2024, compared to 117.03% and 154.63% as of September 30, 2024 and December 31, 2023, respectively. The change in the allowance for credit losses as a percentage of nonaccrual loans was primarily attributable to the levels of nonperforming assets, as discussed above.
The provision for credit losses was $2.9 million for the three months ended December 31, 2024, compared to $2.4 million and $1.2 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The $549 thousand increase in the provision expense for the fourth quarter of 2024 compared to the third quarter of 2024 was primarily a result of increased net loan charge-offs in the fourth quarter of 2024. The $1.7 million increase in the provision expense for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was primarily due to both required provisioning to cover loan portfolio growth, and the increased net loan charge-offs in the fourth quarter of 2024 compared to the fourth quarter of 2023.
As discussed in more detail above, for the three months ended December 31, 2024, net loan charge-offs were $2.1 million, or 0.19% (annualized) of average total loans and loans held for sale, compared to $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended September 30, 2024, and $1.2 million, or 0.11% (annualized) of average total loans and loans held for sale, during the three months ended December 31, 2023.
For the twelve months ended December 31, 2024, net loan charge-offs were $7.5 million, or 0.17%, of average total loans and loans held for sale, compared to $3.4 million, or 0.08%, of average total loans and loans held for sale, during the twelve months ended December 31, 2023, with a couple of the larger charge-offs occurring in the first and second quarters of 2024, as previously disclosed in those periods.

Capital

As of December 31, 2024, the Corporation’s total shareholders’ equity was $610.7 million, representing an increase of $4.3 million, or 0.71% (2.84% annualized), from September 30, 2024 and an increase of $39.4 million, or 6.91%, from December 31, 2023. The changes resulted from an increase in the Corporation’s retained earnings (net income, partially offset by the common and preferred stock dividends paid) and a decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio. The additions to shareholders equity from retained earnings were also partially offset by the Corporation’s repurchase of some of its common stock.
Regulatory capital ratios for the Corporation continue to exceed regulatory “well-capitalized” levels as of December 31, 2024, consistent with prior periods.
As of December 31, 2024, the Corporation’s ratio of common shareholders’ equity to total assets was 8.93% compared to 9.12% at September 30, 2024 and 8.93% at December 31, 2023. As of December 31, 2024, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.28% compared to 8.45% at September 30, 2024 and 8.22% at December 31, 2023. The decrease in the December 31, 2024 ratio compared to September 30, 2024 was primarily the result of an increase in accumulated other comprehensive loss, partially offset by an increase in retained earnings, as discussed above.¹

Recent Events

On January 10, 2025, the Corporation announced that the Corporation and CNB Bank entered into a definitive merger agreement (the “Merger Agreement”) with ESSA in an all-stock transaction. Under the terms of the Merger Agreement, each outstanding share of ESSA Bancorp common stock will be converted into the right to receive 0.8547 shares of the Corporation’s common stock. The transaction is currently expected to close in the third quarter of 2025, subject to customary closing conditions, including the receipt of regulatory approvals, and approval by the shareholders of ESSA Bancorp and the Corporation.

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.2 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, one drive-up office, one mobile office, and 55 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.

Forward-Looking Statements

This press release includes 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, with respect to the Corporation’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Corporation’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” The Corporation’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; (ii) changes in interest rates; (iii) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (iv) effectiveness of our data security controls in the face of cyber attacks and any reputational risks following a cybersecurity incident; (v) changes in general business, industry or economic conditions or competition; (vi) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (vii) governmental approvals of the Corporation’s pending merger with ESSA may not be obtained, or adverse regulatory conditions may be imposed in connection with governmental approvals of the merger; (viii) the Corporation’s shareholders and/or the shareholders of ESSA may fail to approve the merger; (ix) higher than expected costs or other difficulties related to integration of combined or merged businesses; (x) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (xi) changes in the quality or composition of our loan and investment portfolios; (xii) adequacy of loan loss reserves; (xiii) increased competition; (xiv) loss of certain key officers; (xv) deposit attrition; (xvi) rapidly changing technology; (xvii) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xviii) changes in the cost of funds, demand for loan products or demand for financial services; and (xix) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on the Corporation’s financial position and results of operations. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in the Corporation’s annual and quarterly reports filed with the Securities and Exchange Commission.

The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. Factors or events that could cause the Corporation’s actual results to differ may emerge from time to time, and it is not possible for the Corporation to predict all of them. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Income Statement
Interest and fees on loans	$	74,164		$	75,725		$	73,014		$	293,544		$	273,223
Interest and dividends on securities and cash and cash equivalents		9,514			7,510			6,194			31,926			20,473
Interest expense		(34,634	)		(35,749	)		(31,514	)		(138,001	)		(103,867	)
Net interest income		49,044			47,486			47,694			187,469			189,829
Provision for credit losses		2,930			2,381			1,242			9,222			5,993
Net interest income after provision for credit losses		46,114			45,105			46,452			178,247			183,836
Non-interest income
Wealth and asset management fees		1,976			2,060			1,684			7,845			7,251
Service charges on deposit accounts		1,712			1,790			1,803			6,990			7,372
Other service charges and fees		770			796			727			2,973			3,010
Net realized gains (losses) on available-for-sale securities		83			(9	)		—			74			52
Net realized and unrealized gains (losses) on equity securities		(13	)		656			543			754			(387	)
Mortgage banking		93			197			160			673			676
Bank owned life insurance		784			775			734			3,110			2,945
Card processing and interchange income		2,222			2,241			2,082			8,666			8,301
Other non-interest income		2,694			2,467			1,404			8,029			4,115
Total non-interest income		10,321			10,973			9,137			39,114			33,335
Non-interest expenses
Salaries and benefits		18,501			19,572			19,200			74,536			71,062
Net occupancy expense of premises		3,816			3,701			3,719			14,737			14,509
Technology expense		5,743			5,417			5,525			21,805			20,202
Advertising expense		684			623			1,048			2,545			3,133
State and local taxes		1,090			1,256			1,018			4,726			4,126
Legal, professional, and examination fees		986			940			1,247			4,217			4,414
FDIC insurance premiums		864			846			978			3,718			3,879
Card processing and interchange expenses		1,325			1,193			756			4,575			5,025
Other non-interest expense		4,796			5,236			4,959			19,143			18,992
Total non-interest expenses		37,805			38,784			38,450			150,002			145,342
Income before income taxes		18,630			17,294			17,139			67,359			71,829
Income tax expense		3,566			3,340			3,162			12,784			13,809
Net income		15,064			13,954			13,977			54,575			58,020
Preferred stock dividends		1,076			1,076			1,076			4,302			4,302
Net income available to common shareholders	$	13,988		$	12,878		$	12,901		$	50,273		$	53,718

Ending shares outstanding		20,987,992			20,994,730			20,896,439			20,987,992			20,896,439
Average diluted common shares outstanding		20,929,885			20,911,862			20,841,528			20,900,037			20,944,376
Diluted earnings per common share	$	0.66		$	0.61		$	0.62		$	2.39		$	2.55
Cash dividends per common share	$	0.180		$	0.180		$	0.175		$	0.710		$	0.700
Dividend payout ratio		27	%		30	%		28	%		30	%		27	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Average Balances
Total loans and loans held for sale	$	4,556,770		$	4,536,702		$	4,463,644		$	4,491,304		$	4,396,341
Investment securities		744,149			722,577			730,050			733,055			760,976
Total earning assets		5,674,794			5,503,832			5,343,817			5,499,187			5,232,117
Total assets		6,085,277			5,907,115			5,719,313			5,894,958			5,601,371
Noninterest-bearing deposits		832,168			795,771			759,781			781,780			793,713
Interest-bearing deposits		4,442,150			4,319,606			4,217,771			4,328,430			4,037,554
Shareholders’ equity		612,184			597,984			556,245			592,550			550,333
Tangible common shareholders’ equity (non-GAAP)⁽¹⁾		510,308			496,091			454,294			490,647			448,355

Average Yields (annualized)
Total loans and loans held for sale		6.50	%		6.66	%		6.51	%		6.55	%		6.23	%
Investment securities		2.40	%		2.19	%		1.96	%		2.19	%		1.96	%
Total earning assets		5.84	%		5.98	%		5.82	%		5.88	%		5.57	%
Interest-bearing deposits		3.00	%		3.19	%		2.86	%		3.08	%		2.42	%
Interest-bearing liabilities		3.03	%		3.21	%		2.89	%		3.11	%		2.49	%

Performance Ratios (annualized)
Return on average assets		0.98	%		0.94	%		0.97	%		0.93	%		1.04	%
Return on average equity		9.79	%		9.28	%		9.97	%		9.21	%		10.54	%
Return on average tangible common equity (non-GAAP)⁽¹⁾		10.90	%		10.33	%		11.27	%		10.25	%		11.98	%
Net interest margin, fully tax equivalent basis (non-GAAP)⁽¹⁾		3.43	%		3.42	%		3.51	%		3.39	%		3.61	%
Efficiency Ratio, fully tax equivalent basis (non-GAAP)⁽¹⁾		63.02	%		65.58	%		66.93	%		65.47	%		64.45	%

Net Loan Charge-Offs
CNB Bank net loan charge-offs	$	1,719		$	837		$	747		$	5,782		$	1,702
Holiday Financial net loan charge-offs		425			383			487			1,730			1,739
Total Corporation net loan charge-offs	$	2,144		$	1,220		$	1,234		$	7,512		$	3,441
Annualized net loan charge-offs / average total loans and loans held for sale		0.19	%		0.11	%		0.11	%		0.17	%		0.08	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	December 31, 2024			September 30, 2024			December 31, 2023
Ending Balance Sheet
Cash and due from banks	$	63,771		$	75,214		$	54,789
Interest-bearing deposits with Federal Reserve		375,009			281,972			164,385
Interest-bearing deposits with other financial institutions		4,255			3,723			2,872
Total cash and cash equivalents		443,035			360,909			222,046
Debt securities available-for-sale, at fair value		468,546			378,965			341,955
Debt securities held-to-maturity, at amortized cost		306,081			328,152			388,968
Equity securities		10,456			10,389			9,301
Loans held for sale		762			768			675
Loans receivable
Syndicated loans		79,882			69,470			108,710
Loans		4,529,074			4,522,438			4,359,718
Total loans receivable		4,608,956			4,591,908			4,468,476
Less: allowance for credit losses		(47,357	)		(46,644	)		(45,832	)
Net loans receivable		4,561,599			4,545,264			4,422,644
Goodwill and other intangibles		43,874			43,874			43,874
Core deposit intangible		206			223			280
Other assets		357,451			346,300			323,214
Total Assets	$	6,192,010		$	6,014,844		$	5,752,957

Noninterest-bearing demand deposits	$	819,680		$	841,292		$	728,881
Interest-bearing demand deposits		706,796			681,056			803,093
Savings		3,122,028			3,040,769			2,960,282
Certificates of deposit		722,860			653,832			506,494
Total deposits		5,371,364			5,216,949			4,998,750
Subordinated debentures		20,620			20,620			20,620
Subordinated notes, net of issuance costs		84,570			84,495			84,267
Other liabilities		104,761			86,417			78,073
Total liabilities		5,581,315			5,408,481			5,181,710
Common stock		—			—			—
Preferred stock		57,785			57,785			57,785
Additional paid in capital		219,876			219,304			220,495
Retained earnings		381,296			371,086			345,935
Treasury stock		(4,689	)		(4,516	)		(6,890	)
Accumulated other comprehensive loss		(43,573	)		(37,296	)		(46,078	)
Total shareholders’ equity		610,695			606,363			571,247
Total liabilities and shareholders’ equity	$	6,192,010		$	6,014,844		$	5,752,957

Book value per common share	$	26.34		$	26.13		$	24.57
Tangible book value per common share (non-GAAP)⁽¹⁾	$	24.24		$	24.03		$	22.46


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	December 31, 2024			September 30, 2024			December 31, 2023
Capital Ratios
Tangible common equity / tangible assets (non-GAAP)⁽¹⁾		8.28	%		8.45	%		8.22	%
Tier 1 leverage ratio⁽²⁾		10.43	%		10.59	%		10.54	%
Common equity tier 1 ratio⁽²⁾		11.76	%		11.64	%		11.49	%
Tier 1 risk-based ratio⁽²⁾		13.41	%		13.30	%		13.20	%
Total risk-based ratio⁽²⁾		16.16	%		16.06	%		15.99	%

Asset Quality Detail
Nonaccrual loans	$	56,323		$	39,855		$	29,639
Loans 90+ days past due and accruing		653			666			55
Total nonperforming loans		56,976			40,521			29,694
Other real estate owned		2,509			1,514			2,111
Total nonperforming assets	$	59,485		$	42,035		$	31,805

Asset Quality Ratios
Nonperforming assets / Total loans + OREO		1.29	%		0.92	%		0.71	%
Nonperforming assets / Total assets		0.96	%		0.70	%		0.55	%
Ratio of allowance for credit losses on loans to nonaccrual loans		84.08	%		117.03	%		154.63	%
Allowance for credit losses / Total loans		1.03	%		1.02	%		1.03	%


Consolidated Financial Data Notes:
⁽¹⁾Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
⁽²⁾Capital ratios as of December 31, 2024 are estimated pending final regulatory filings.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Three Months Ended,
	December 31, 2024							September 30, 2024							December 31, 2023
	Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable^{(1) (4)}	$	711,286		2.36	%	$	4,487	$	690,098		2.14	%	$	3,980	$	694,369		1.89	%	$	3,626
Tax-exempt^{(1) (2) (4)}		25,489		2.67			184		25,368		2.57			178		27,590		2.55			198
Equity securities^{(1) (2)}		7,374		5.77			107		7,111		5.71			102		8,091		5.54			113
Total securities⁽⁴⁾		744,149		2.40			4,778		722,577		2.19			4,260		730,050		1.96			3,937
Loans receivable:
Commercial^{(2) (3)}		1,458,902		6.77			24,824		1,457,192		7.02			25,708		1,467,452		7.07			26,165
Mortgage and loans held for sale^{(2) (3)}		2,965,914		6.12			45,633		2,947,787		6.25			46,278		2,860,619		5.99			43,166
Consumer⁽³⁾		131,954		11.93			3,956		131,723		11.93			3,950		135,573		11.38			3,890
Total loans receivable⁽³⁾		4,556,770		6.50			74,413		4,536,702		6.66			75,936		4,463,644		6.51			73,221
Interest-bearing deposits with the Federal Reserve and other financial institutions		373,875		5.08			4,771		244,553		5.33			3,279		150,123		6.06			2,292
Total earning assets		5,674,794		5.84		$	83,962		5,503,832		5.98		$	83,475		5,343,817		5.82		$	79,450
Noninterest-bearing assets:
Cash and due from banks		59,445							58,472							55,815
Premises and equipment		124,398							118,404							109,469
Other assets		273,326							272,377							256,253
Allowance for credit losses		(46,686	)						(45,970	)						(46,041	)
Total non interest-bearing assets		410,483							403,283							375,496
TOTAL ASSETS	$	6,085,277						$	5,907,115						$	5,719,313
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	686,359		0.83	%	$	1,437	$	682,690		0.86	%	$	1,477	$	778,488		0.55	%	$	1,081
Savings		3,068,451		3.26			25,139		3,076,351		3.55			27,461		2,920,026		3.36			24,712
Time		687,340		4.02			6,953		560,565		4.03			5,684		519,257		3.50			4,587
Total interest-bearing deposits		4,442,150		3.00			33,529		4,319,606		3.19			34,622		4,217,771		2.86			30,380
Short-term borrowings		—		0.00			—		—		0.00			—		0		0.00			0
Finance lease liabilities		212		3.75			2		236		5.06			3		305		3.90			3
Subordinated notes and debentures		105,153		4.17			1,103		105,077		4.26			1,124		104,849		4.28			1,131
Total interest-bearing liabilities		4,547,515		3.03		$	34,634		4,424,919		3.21		$	35,749		4,322,925		2.89		$	31,514
Demand—noninterest-bearing		832,168							795,771							759,781
Other liabilities		93,410							88,441							80,362
Total Liabilities		5,473,093							5,309,131							5,163,068
Shareholders’ equity		612,184							597,984							556,245
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,085,277						$	5,907,115						$	5,719,313
Interest income/Earning assets				5.84	%	$	83,962				5.98	%	$	83,475				5.82	%	$	79,450
Interest expense/Interest-bearing liabilities				3.03			34,634				3.21			35,749				2.89			31,514
Net interest spread				2.81	%	$	49,328				2.77	%	$	47,726				2.93	%	$	47,936
Interest income/Earning assets				5.84	%		83,962				5.98	%		83,475				5.82	%		79,450
Interest expense/Earning assets				2.41			34,634				2.56			35,749				2.31			31,514
Net interest margin (fully tax-equivalent)				3.43	%	$	49,328				3.42	%	$	47,726				3.51	%	$	47,936

_____________________________________
⁽¹⁾Includes unamortized discounts and premiums.
⁽²⁾Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 was $284 thousand, $240 thousand and $242 thousand, respectively.
⁽³⁾Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
⁽⁴⁾Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 was $(47.0) million, $(51.1) million and $(68.5) million, respectively.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Twelve Months Ended,
	December 31, 2024							December 31, 2023
	Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable^{(1) (4)}	$	700,078		2.14	%	$	16,059	$	720,818		1.89	%	$	14,766
Tax-exempt^{(1) (2) (4)}		25,919		2.60			731		30,153		2.59			844
Equity securities^{(1) (2)}		7,058		5.71			403		10,005		5.09			509
Total securities⁽⁴⁾		733,055		2.19			17,193		760,976		1.96			16,119
Loans receivable:
Commercial^{(2) (3)}		1,440,667		6.88			99,184		1,501,202		6.63			99,587
Mortgage and loans held for sale^{(2) (3)}		2,920,537		6.15			179,645		2,765,484		5.77			159,606
Consumer⁽³⁾		130,100		11.95			15,547		129,655		11.47			14,868
Total loans receivable⁽³⁾		4,491,304		6.55			294,376		4,396,341		6.23			274,061
Interest-bearing deposits with the Federal Reserve and other financial institutions		274,828		5.41			14,856		74,800		6.03			4,513
Total earning assets		5,499,187		5.88		$	326,425		5,232,117		5.57		$	294,693
Noninterest-bearing assets:
Cash and due from banks		56,295							54,824
Premises and equipment		116,341							107,635
Other assets		269,167							251,725
Allowance for credit losses		(46,032	)						(44,930	)
Total non interest-bearing assets		395,771							369,254
TOTAL ASSETS	$	5,894,958						$	5,601,371
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	705,488		0.77	%	$	5,451	$	853,632		0.54	%	$	4,626
Savings		3,052,031		3.46			105,675		2,666,905		2.92			77,782
Time		570,911		3.92			22,367		517,017		2.97			15,362
Total interest-bearing deposits		4,328,430		3.08			133,493		4,037,554		2.42			97,770
Short-term borrowings		—		0.00			—		35,224		5.07			1,787
Finance lease liabilities		247		4.45			11		339		4.42			15
Subordinated notes and debentures		105,039		4.28			4,497		104,735		4.10			4,295
Total interest-bearing liabilities		4,433,716		3.11		$	138,001		4,177,852		2.49		$	103,867
Demand—noninterest-bearing		781,780							793,713
Other liabilities		86,912							79,473
Total Liabilities		5,302,408							5,051,038
Shareholders’ equity		592,550							550,333
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,894,958						$	5,601,371
Interest income/Earning assets				5.88	%	$	326,425				5.57	%	$	294,693
Interest expense/Interest-bearing liabilities				3.11			138,001				2.49			103,867
Net interest spread				2.77	%	$	188,424				3.08	%	$	190,826
Interest income/Earning assets				5.88	%		326,425				5.57	%		294,693
Interest expense/Earning assets				2.49			138,001				1.96			103,867
Net interest margin (fully tax-equivalent)				3.39	%	$	188,424				3.61	%	$	190,826

_____________________________________
⁽¹⁾Includes unamortized discounts and premiums.
⁽²⁾Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the twelve months ended December 31, 2024 and 2023, was $955 thousand and $997 thousand, respectively.
⁽³⁾Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
⁽⁴⁾Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the twelve months ended December 31, 2024 and 2023 was $(53.1) million and $(61.1) million, respectively.


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	December 31, 2024			September 30, 2024			December 31, 2023
Calculation of tangible book value per common share and tangible common equity / tangible assets (non-GAAP):
Shareholders’ equity	$	610,695		$	606,363		$	571,247
Less: preferred equity		57,785			57,785			57,785
Common shareholders’ equity		552,910			548,578			513,462
Less: goodwill and other intangibles		43,874			43,874			43,874
Less: core deposit intangible		206			223			280
Tangible common equity (non-GAAP)	$	508,830		$	504,481		$	469,308

Total assets	$	6,192,010		$	6,014,844		$	5,752,957
Less: goodwill and other intangibles		43,874			43,874			43,874
Less: core deposit intangible		206			223			280
Tangible assets (non-GAAP)	$	6,147,930		$	5,970,747		$	5,708,803

Ending shares outstanding		20,987,992			20,994,730			20,896,439

Book value per common share (GAAP)	$	26.34		$	26.13		$	24.57
Tangible book value per common share (non-GAAP)	$	24.24		$	24.03		$	22.46

Common shareholders’ equity / Total assets (GAAP)		8.93	%		9.12	%		8.93	%
Tangible common equity / Tangible assets (non-GAAP)		8.28	%		8.45	%		8.22	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Calculation of net interest margin:
Interest income	$	83,678		$	83,235		$	79,208		$	325,470		$	293,696
Interest expense		34,634			35,749			31,514			138,001			103,867
Net interest income	$	49,044		$	47,486		$	47,694		$	187,469		$	189,829

Average total earning assets	$	5,674,794		$	5,503,832		$	5,343,817		$	5,499,187		$	5,232,117

Net interest margin (GAAP) (annualized)		3.44	%		3.43	%		3.54	%		3.41	%		3.63	%

Calculation of net interest margin (fully tax equivalent basis) (non-GAAP):
Interest income	$	83,678		$	83,235		$	79,208		$	325,470		$	293,696
Tax equivalent adjustment (non-GAAP)		284			240			242			955			997
Adjusted interest income (fully tax equivalent basis) (non-GAAP)		83,962			83,475			79,450			326,425			294,693
Interest expense		34,634			35,749			31,514			138,001			103,867
Net interest income (fully tax equivalent basis) (non-GAAP)	$	49,328		$	47,726		$	47,936		$	188,424		$	190,826

Average total earning assets	$	5,674,794		$	5,503,832		$	5,343,817		$	5,499,187		$	5,232,117
Less: average mark to market adjustment on investments (non-GAAP)		(46,988	)		(51,075	)		(68,546	)		(53,087	)		(61,089	)
Adjusted average total earning assets, net of mark to market (non-GAAP)	$	5,721,782		$	5,554,907		$	5,412,363		$	5,552,274		$	5,293,206

Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)		3.43	%		3.42	%		3.51	%		3.39	%		3.61	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Calculation of PPNR (non-GAAP):⁽¹⁾
Net interest income	$	49,044	$	47,486	$	47,694	$	187,469	$	189,829
Add: Non-interest income		10,321		10,973		9,137		39,114		33,335
Less: Non-interest expense		37,805		38,784		38,450		150,002		145,342
PPNR (non-GAAP)	$	21,560	$	19,675	$	18,381	$	76,581	$	77,822

⁽¹⁾Management believes that this is an important metric as it illustrates the underlying performance of the Corporation, it enables investors and others to assess the Corporation’s ability to generate capital to cover credit losses through the credit cycle and provides consistent reporting with a key metric used by bank regulatory agencies.

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Calculation of efficiency ratio:
Non-interest expense	$	37,805		$	38,784		$	38,450		$	150,002		$	145,342

Non-interest income	$	10,321		$	10,973		$	9,137		$	39,114		$	33,335
Net interest income		49,044			47,486			47,694			187,469			189,829
Total revenue	$	59,365		$	58,459		$	56,831		$	226,583		$	223,164
Efficiency ratio		63.68	%		66.34	%		67.66	%		66.20	%		65.13	%

Calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):
Non-interest expense	$	37,805		$	38,784		$	38,450		$	150,002		$	145,342
Less: core deposit intangible amortization		16			18			19			73			84
Adjusted non-interest expense (non-GAAP)	$	37,789		$	38,766		$	38,431		$	149,929		$	145,258

Non-interest income	$	10,321		$	10,973		$	9,137		$	39,114		$	33,335

Net interest income	$	49,044		$	47,486		$	47,694		$	187,469		$	189,829
Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)		1,508			1,473			1,383			5,635			5,425
Add: tax exempt investment and loan income (fully tax equivalent basis) (non-GAAP)		2,111			2,123			1,968			8,068			7,635
Adjusted net interest income (fully tax equivalent basis) (non-GAAP)		49,647			48,136			48,279			189,902			192,039
Adjusted net revenue (fully tax equivalent basis) (non-GAAP)	$	59,968		$	59,109		$	57,416		$	229,016		$	225,374

Efficiency ratio (fully tax equivalent basis) (non-GAAP)		63.02	%		65.58	%		66.93	%		65.47	%		64.45	%


CNB FINANCIAL CORPORATION CONSOLIDATED FINANCIAL DATA Unaudited (dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Calculation of return on average tangible common equity (non-GAAP):
Net income	$	15,064		$	13,954		$	13,977		$	54,575		$	58,020
Less: preferred stock dividends		1,076			1,076			1,076			4,302			4,302
Net income available to common shareholders	$	13,988		$	12,878		$	12,901		$	50,273		$	53,718

Average shareholders’ equity	$	612,184		$	597,984		$	556,245		$	592,550		$	550,333
Less: average goodwill & intangibles		44,091			44,108			44,166			44,118			44,193
Less: average preferred equity		57,785			57,785			57,785			57,785			57,785
Tangible common shareholders’ equity (non-GAAP)	$	510,308		$	496,091		$	454,294		$	490,647		$	448,355

Return on average equity (GAAP) (annualized)		9.79	%		9.28	%		9.97	%		9.21	%		10.54	%
Return on average common equity (GAAP) (annualized)		10.04	%		9.48	%		10.27	%		9.40	%		10.91	%
Return on average tangible common equity (non-GAAP) (annualized)		10.90	%		10.33	%		11.27	%		10.25	%		11.98	%

The MIL Network –

January 29, 2025

MIL-OSI: Hanmi Reports 2024 Fourth Quarter and Full Year Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the fourth quarter of 2024 and full year.

Net income for the fourth quarter of 2024 was $17.7 million, or $0.58 per diluted share, compared with $14.9 million, or $0.49 per diluted share, for the third quarter of 2024. The return on average assets for the fourth quarter of 2024 was 0.93% and the return on average equity was 8.89%, compared with a return on average assets of 0.79% and a return on average equity of 7.55% for the third quarter of 2024.

For the full year of 2024, net income was $62.2 million, or $2.05 per diluted share, compared with $80.0 million, or $2.62 per diluted share, for 2023. The return on average assets for 2024 was 0.83% and the return on average equity was 7.97%.

CEO Commentary
“Hanmi achieved exceptional results in the fourth quarter, delivering our best quarterly performance of the year and closing 2024 with strong momentum,” said Bonnie Lee, President and Chief Executive Officer. “Our team’s outstanding execution generated significant earnings growth fueled by our net interest margin expansion of 17 basis points to 2.91%, disciplined expense management, and vigilant credit administration. These robust results highlight the strength of our relationship-driven banking model.”

“For the full year, we had a number of key accomplishments to advance our growth and diversification strategy. We delivered 16% growth in our C&I loan portfolio, driven primarily by the strong contribution from our Corporate Korea initiative. Noninterest-bearing demand deposits grew by 5% and now represent 33% of our total deposits. Finally, through our proactive monitoring of the portfolio and our successful resolution efforts, we further improved asset quality with nonperforming assets as a percentage of total assets decreasing to 0.19%.”

“With our strong capital foundation, we are well positioned to execute on our growth strategy. Our performance is the result of our team’s unwavering dedication to serving our customers and the communities in which we operate. I want to thank each of them for their continued commitment to deliver long-term value for our shareholders,” concluded Lee.

Fourth Quarter 2024 Highlights:

Fourth quarter net income was $17.7 million, or $0.58 per diluted share, up 18.8% from $14.9 million, or $0.49 per diluted share for the third quarter of 2024. The increase reflects a $3.4 million, or 6.8%, increase in net interest income, primarily due to a decrease in interest expense on deposits.
Loans receivable were $6.25 billion at December 31, 2024, essentially unchanged from the end of the third quarter of 2024; loan production for the fourth quarter was $339.0 million, with a weighted average interest rate of 7.37%, compared with loan production for the third quarter of $347.8 million, with a weighted average interest rate of 7.92%.
Deposits were $6.44 billion at December 31, 2024, up 0.5% from the end of the third quarter of 2024; noninterest-bearing demand deposits were 32.6% of total deposits. During the quarter, noninterest-bearing demand deposits grew 2.2%, while time deposits declined 2.0% from the prior quarter.
Net interest income for the fourth quarter was $53.4 million, up 6.8% from the third quarter of 2024. Net interest margin (taxable equivalent) increased 17 basis points to 2.91%; the average yield on loans declined three basis points to 5.97%, while the cost of interest-bearing deposits fell 31 basis points to 3.96%.

Credit loss expense for the fourth quarter was $0.9 million, a decrease from $2.3 million for the prior quarter. The allowance for credit losses increased $1.0 million to $70.1 million at December 31, 2024, or 1.12% of loans. For the fourth quarter, net loan recoveries were $0.1 million.
Asset quality remained strong, as nonperforming loans declined by 7.9% to $14.3 million, or 0.23% of loans, which included pay-offs of $1.8 million, while criticized loans increased to $165.3 million, as special mention loans increased to $139.6 million and classified loans fell to $25.7 million.

For more information about Hanmi, please see the Q4 2024 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

	As of or for the Three Months Ended																Amount Change
	December 31,			September 30,				June 30,			March 31,			December 31,			Q4-24			Q4-24
	2024				2024			2024			2024			2023			vs. Q3-24			vs. Q4-23

Net income	$	17,695			$	14,892		$	14,451		$	15,164		$	18,633		$	2,803		$	(938	)
Net income per diluted common share	$	0.58			$	0.49		$	0.48		$	0.50		$	0.61		$	0.09		$	(0.03	)

Assets	$	7,677,925			$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341		$	(34,374	)	$	107,584
Loans receivable	$	6,251,377			$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434		$	(6,367	)	$	68,943
Deposits	$	6,435,776			$	6,403,221		$	6,329,340		$	6,376,060		$	6,280,574		$	32,555		$	155,202

Return on average assets		0.93	%			0.79	%		0.77	%		0.81	%		0.99	%		0.14			-0.06
Return on average stockholders’ equity		8.89	%			7.55	%		7.50	%		7.90	%		9.70	%		1.34			-0.81

Net interest margin		2.91	%			2.74	%		2.69	%		2.78	%		2.92	%		0.17			-0.01
Efficiency ratio ⁽¹⁾		56.79	%			59.98	%		62.24	%		62.42	%		58.86	%		-3.19			-2.07

Tangible common equity to tangible assets ⁽²⁾		9.41	%			9.42	%		9.19	%		9.23	%		9.14	%		-0.01			0.27
Tangible common equity per common share ⁽²⁾	$	23.88			$	24.03		$	22.99		$	22.86		$	22.75			-0.15			1.14


⁽¹⁾Noninterest expense divided by net interest income plus noninterest income.
⁽²⁾Refer to “Non-GAAP Financial Measures” for further details.

Results of Operations
Net interest income for the fourth quarter was $53.4 million, up 6.8% from $50.1 million for the third quarter of 2024. The increase was primarily due to a decrease in deposit interest expense. The decrease in deposit interest expense was primarily a result of decreases in deposit rates and the average balances of interest-bearing deposits, coupled with a 3.1% increase in the average balance of noninterest-bearing demand deposits. The rate on deposits for the fourth quarter decreased 31 basis points to 3.96%, from 4.27% for the third quarter of 2024. The average balance of interest-bearing deposits decreased to $4.36 billion for the fourth quarter of 2024, from $4.40 billion for the third quarter. The average balance of noninterest-bearing deposits for the fourth quarter increased to $1.97 billion, from $1.91 billion for the third quarter of 2024. Net interest margin (taxable equivalent) for the fourth quarter was 2.91%, up 17 basis points from 2.74% for the third quarter of 2024.

Net interest income was $202.8 million for the full year of 2024 compared with $221.3 million for 2023, a decline of 8.4%. The decrease reflected higher interest rates during 2024 compared with 2023, including an increase in the cost of interest-bearing deposits, partially offset by an increase in interest-earning asset yields. The cost of interest-bearing deposits for 2024 year increased 81 basis points to 4.16% from 3.35% for 2023. The yield on average interest-earning assets for 2024 increased 31 basis points to 5.46% from 5.15% for 2023. The average balance of interest-bearing deposits for 2024 increased to $4.39 billion from $4.02 billion for 2023. The average balance of interest-earning assets for 2024 year increased 1.7% to $7.30 billion from $7.18 billion for 2023. The average balance of loans for 2024 year was $6.11 billion, up 2.4% from $5.97 billion for 2023. Net interest margin (taxable-equivalent) for 2024 year was 2.78% compared with 3.08% for 2023. The 30 basis point decrease in the net interest margin reflected the increase in the cost of interest-bearing deposits, partially offset by the increase in average loan yields.

	For the Three Months Ended (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24			Q4-24
Net Interest Income	2024		2024		2024		2024		2023		vs. Q3-24			vs. Q4-23

Interest and fees on loans receivable⁽¹⁾	$	91,545	$	92,182	$	90,752	$	91,674	$	89,922		-0.7	%		1.8	%
Interest on securities		5,866		5,523		5,238		4,955		4,583		6.2	%		28.0	%
Dividends on FHLB stock		360		356		357		361		341		1.1	%		5.6	%
Interest on deposits in other banks		2,342		2,356		2,313		2,604		2,337		-0.6	%		0.2	%
Total interest and dividend income	$	100,113	$	100,417	$	98,660	$	99,594	$	97,183		-0.3	%		3.0	%

Interest on deposits		43,406		47,153		46,495		45,638		40,277		-7.9	%		7.8	%
Interest on borrowings		1,634		1,561		1,896		1,655		2,112		4.7	%		-22.6	%
Interest on subordinated debentures		1,624		1,652		1,649		1,646		1,654		-1.7	%		-1.8	%
Total interest expense		46,664		50,366		50,040		48,939		44,043		-7.4	%		6.0	%
Net interest income	$	53,449	$	50,051	$	48,620	$	50,655	$	53,140		6.8	%		0.6	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and Interest-bearing Liabilities		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Q4-24 vs. Q3-24		Q4-24 vs. Q4-23
Loans receivable ⁽¹⁾	$	6,103,264	$	6,112,324	$	6,089,440	$	6,137,888	$	6,071,644		-0.1	%	0.5	%
Securities		998,313		986,041		979,671		969,520		961,551		1.2	%	3.8	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%	0.0	%
Interest-bearing deposits in other banks		204,408		183,027		180,177		201,724		181,140		11.7	%	12.8	%
Average interest-earning assets	$	7,322,370	$	7,297,777	$	7,265,673	$	7,325,517	$	7,230,720		0.3	%	1.3	%

Demand: interest-bearing	$	79,784	$	83,647	$	85,443	$	86,401	$	86,679		-4.6	%	-8.0	%
Money market and savings		1,934,540		1,885,799		1,845,870		1,815,085		1,669,973		2.6	%	15.8	%
Time deposits		2,346,363		2,427,737		2,453,154		2,507,830		2,417,803		-3.4	%	-3.0	%
Average interest-bearing deposits		4,360,687		4,397,183		4,384,467		4,409,316		4,174,455		-0.8	%	4.5	%
Borrowings		141,604		143,479		169,525		162,418		205,951		-1.3	%	-31.2	%
Subordinated debentures		130,567		130,403		130,239		130,088		129,933		0.1	%	0.5	%
Average interest-bearing liabilities	$	4,632,858	$	4,671,065	$	4,684,231	$	4,701,822	$	4,510,339		-0.8	%	2.7	%

Average Noninterest Bearing Deposits
Demand deposits – noninterest bearing	$	1,967,789	$	1,908,833	$	1,883,765	$	1,921,189	$	2,025,212		3.1	%	-2.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended															Yield/Rate Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Q4-24		Q4-24
Average Yields and Rates	2024			2024			2024			2024			2023			vs. Q3-24		vs. Q4-23
Loans receivable⁽¹⁾		5.97	%		6.00	%		5.99	%		6.00	%		5.88	%		-0.03		0.09
Securities ⁽²⁾		2.38	%		2.27	%		2.17	%		2.07	%		1.93	%		0.11		0.45
FHLB stock		8.75	%		8.65	%		8.77	%		8.87	%		8.25	%		0.10		0.50
Interest-bearing deposits in other banks		4.56	%		5.12	%		5.16	%		5.19	%		5.12	%		-0.56		-0.56
Interest-earning assets		5.45	%		5.48	%		5.46	%		5.47	%		5.34	%		-0.03		0.11

Interest-bearing deposits		3.96	%		4.27	%		4.27	%		4.16	%		3.83	%		-0.31		0.13
Borrowings		4.59	%		4.33	%		4.50	%		4.10	%		4.07	%		0.26		0.52
Subordinated debentures		4.97	%		5.07	%		5.07	%		5.06	%		5.09	%		-0.10		-0.12
Interest-bearing liabilities		4.01	%		4.29	%		4.30	%		4.19	%		3.88	%		-0.28		0.13

Net interest margin (taxable equivalent basis)		2.91	%		2.74	%		2.69	%		2.78	%		2.92	%		0.17		-0.01

Cost of deposits		2.73	%		2.97	%		2.98	%		2.90	%		2.58	%		-0.24		0.15

⁽¹⁾Includes loans held for sale.
⁽²⁾Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Credit loss expense for the fourth quarter was $0.9 million, compared with $2.3 million for the third quarter of 2024. Fourth quarter credit loss expense included a $0.9 million credit loss expense for loan losses. Fourth quarter net loan recoveries were $0.1 million, compared to third quarter net loan charge-offs of $0.9 million.

Credit loss expense was $4.4 million for 2024, compared with $4.3 million for 2023. The credit loss expense for 2024 was comprised of a $4.8 million credit loss expense for loan losses and a $0.4 million credit loss expense recovery for off-balance sheet items. 2023 credit loss expense was comprised of a $4.9 million credit loss expense for loan losses and a $0.6 million credit loss expense recovery for off-balance sheet items.

Noninterest income for the fourth quarter decreased $1.0 million, or 12.8%, to $7.4 million, from $8.4 million for the third quarter of 2024. The decrease was primarily due to a $0.9 million gain from the sale and leaseback of a branch property included in third quarter noninterest income. Gains on sales of SBA loans were $1.4 million for the fourth quarter of 2024, compared with $1.5 million for the third quarter of 2024. The volume of SBA loans sold for the fourth quarter decreased to $21.6 million, from $23.0 million for the third quarter of 2024, while trade premiums were 8.53% for the fourth quarter of 2024, slightly lower than 8.54% for the third quarter. Mortgage loans sold for the fourth quarter were $18.3 million, with a premium of 1.96%, compared with $20.9 million and 2.32% for the third quarter. Gains on mortgage loans sold were $0.3 million for both quarters.

Noninterest income decreased $2.6 million, or 7.6%, to $31.6 million for 2024, from $34.2 million for 2023, primarily due to a $4.0 million gain on the sale-and-leaseback of a branch property in 2023 and a $0.8 million decrease in service charges on deposits. Those items were partially offset by a $1.5 million gain on the sale of mortgage loans and a $0.9 million gain from the sale and leaseback of a branch property in 2024. The volume of SBA loans sold in 2024 declined to $93.7 million, from $100.5 million for 2023, while trade premiums increased to 8.18% for 2024, from 7.12% for 2023.

	For the Three Months Ended (in thousands)											Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,			Q4-24			Q4-24
Noninterest Income	2024		2024		2024		2024		2023			vs. Q3-24			vs. Q4-23
Service charges on deposit accounts	$	2,192	$	2,311	$	2,429	$	2,450	$	2,391			-5.1	%		-8.3	%
Trade finance and other service charges and fees		1,364		1,254		1,277		1,414		1,245			8.8	%		9.6	%
Servicing income		668		817		796		712		772			-18.2	%		-13.5	%
Bank-owned life insurance income (expense)		316		320		638		304		(29	)		-1.3	%	N/M
All other operating income		1,037		1,008		908		928		853			2.9	%		21.6	%
Service charges, fees & other		5,577		5,710		6,048		5,808		5,232			-2.3	%		6.6	%

Gain on sale of SBA loans		1,443		1,544		1,644		1,482		1,448			-6.5	%		-0.3	%
Gain on sale of mortgage loans		337		324		365		443		–			4.0	%		0.0	%
Gain on sale of bank premises		–		860		–		–		–			-100.0	%		0.0	%
Total noninterest income	$	7,357	$	8,438	$	8,057	$	7,733	$	6,680			-12.8	%		10.1	%

N/M – Not meaningful.

Noninterest expense for the fourth quarter decreased by $0.6 million to $34.5 million from $35.1 million for the third quarter of 2024. The decrease primarily reflects a $1.6 million gain on the sale of an other real estate owned property. Absent this gain, fourth quarter noninterest expense was up 3.1% sequentially, due to increases in advertising and promotion expense and legal fees from collections and business activities. In addition, other operating expense for the fourth quarter included a $0.5 million charge related to an SBA loan acquired in a previous acquisition, while the third quarter included a $0.3 million reimbursement for property taxes. The efficiency ratio for the fourth quarter was 56.8%, compared with 60.0% for the third quarter of 2024.

Noninterest expense increased by $4.8 million, or 3.5%, to $141.3 million for 2024, from $136.5 million for 2023. The increase reflected a $2.0 million, or 2.4%, increase in salaries and benefits, a $1.2 million increase in data processing expense, a $0.7 million increase in professional fees, and a $1.4 million increase in other operating expenses. Decreases of $0.2 million in occupancy and equipment expense and $0.2 million in supplies and communication expense partially offset the increases. The efficiency ratio for 2024 increased to 60.3%, from 53.5% for 2023, primarily due to higher expenses and lower revenue.

	For the Three Months Ended (in thousands)											Percentage Change
	Dec 31,			Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24		Q4-24
	2024			2024		2024		2024		2023		vs. Q3-24		vs. Q4-23
Noninterest Expense
Salaries and employee benefits	$	20,498		$	20,851	$	20,434	$	21,585	$	20,062	-1.7	%	2.2	%
Occupancy and equipment		4,503			4,499		4,348		4,537		4,604	0.1	%	-2.2	%
Data processing		3,800			3,839		3,686		3,551		3,487	-1.0	%	9.0	%
Professional fees		1,821			1,492		1,749		1,893		1,977	22.1	%	-7.9	%
Supplies and communication		551			538		570		601		613	2.4	%	-10.1	%
Advertising and promotion		821			631		669		907		990	30.1	%	-17.1	%
All other operating expenses		3,847			2,875		3,251		3,160		3,252	33.8	%	18.3	%
Subtotal		35,841			34,725		34,707		36,234		34,985	3.2	%	2.4	%

Branch consolidation expense		–			–		301		–		–	0.0	%	0.0	%
Other real estate owned (income) expense		(1,588	)		77		6		22		15	N/M		N/M
Repossessed personal property expense		281			278		262		189		211	1.1	%	33.2	%
Total noninterest expense	$	34,534		$	35,080	$	35,276	$	36,445	$	35,211	-1.6	%	-1.9	%

N/M – Not meaningful.

Hanmi recorded a provision for income taxes of $7.6 million for the fourth quarter of 2024, compared with $6.2 million for the third quarter of 2024, representing an effective tax rate of 30.1% and 29.5%, respectively. The effective tax rates for 2024 and 2023 years were 29.8% and 30.1%, respectively.

Financial Position
Total assets at December 31, 2024, decreased 0.4%, or $33.7 million, to $7.68 billion from $7.71 billion at September 30, 2024. The decrease reflected a $45.8 million decrease in loans held-for-sale and a $6.4 million decrease in loans, offset partially by a $17.0 million increase in cash and due from banks. From December 31, 2023, total assets increased 1.4%, or $108.2 million. This year-over-year increase reflected a 1.1%, or $68.9 million, growth in loans receivable, and a 4.6%, or $40.1 million increase in securities, supported by a 2.5%, or $155.2 million increase in deposits.

Loans receivable, before allowance for credit losses, were $6.25 billion at December 31, 2024, down from $6.26 billion at September 30, 2024.

Loans held-for-sale were $8.6 million at December 31, 2024, down from $54.3 million at September 30, 2024. At the end of the fourth quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans. The prior quarter included $18.3 million of residential mortgage loans and a $27.2 million nonaccrual loan, all of which were sold in the fourth quarter.

	As of (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24			Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24			vs. Q4-23
Loan Portfolio
Commercial real estate loans	$	3,949,622	$	3,932,088	$	3,888,505	$	3,878,677	$	3,889,739		0.4	%	1.5	%
Residential/consumer loans		951,302		939,285		954,209		970,362		962,661		1.3	%	-1.2	%
Commercial and industrial loans		863,431		879,092		802,372		774,851		747,819		-1.8	%	15.5	%
Equipment finance		487,022		507,279		531,273		553,950		582,215		-4.0	%	-16.4	%
Loans receivable		6,251,377		6,257,744		6,176,359		6,177,840		6,182,434		-0.1	%	1.1	%
Loans held for sale		8,579		54,336		10,467		3,999		12,013		-84.2	%	-28.6	%
Total	$	6,259,956	$	6,312,080	$	6,186,826	$	6,181,839	$	6,194,447		-0.8	%	1.1	%

	As of
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2024		2024		2024		2024		2023
Composition of Loan Portfolio
Commercial real estate loans	63.1	%	62.3	%	62.9	%	62.7	%	62.8	%
Residential/consumer loans	15.2	%	14.9	%	15.4	%	15.7	%	15.5	%
Commercial and industrial loans	13.8	%	13.9	%	13.0	%	12.5	%	12.1	%
Equipment finance	7.8	%	8.0	%	8.5	%	9.0	%	9.4	%
Loans receivable	99.9	%	99.1	%	99.8	%	99.9	%	99.8	%
Loans held for sale	0.1	%	0.9	%	0.2	%	0.1	%	0.2	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

New loan production was $339.0 million for the fourth quarter of 2024 at an average rate of 7.37%, while payoffs were $137.9 million during the quarter at an average rate of 6.78%.

Commercial real estate loan production for the fourth quarter of 2024 was $146.7 million. Commercial and industrial loan production was $60.2 million, SBA loan production was $49.7 million, equipment finance production was $42.2 million, and residential mortgage loan production was $40.2 million.

New loan production for 2024 was $1.20 billion, a decrease of 7.4%, or $96.0 million, from $1.29 billion for the full year 2023. The average rate for new loan production for 2024 was 7.87% compared with 7.66% for 2023. Payoffs for 2024 were $450.2 million with an average rate of 7.34% compared with $386.0 million and 7.13% for 2023.

	For the Three Months Ended (in thousands)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2024			2024			2024			2024			2023
New Loan Production
Commercial real estate loans	$	146,716		$	110,246		$	87,632		$	60,085		$	178,157
Commercial and industrial loans		60,159			105,086			59,007			50,789			52,079
SBA loans		49,740			51,616			54,486			30,817			48,432
Equipment finance		42,168			40,066			42,594			39,155			57,334
Residential/consumer loans		40,225			40,758			30,194			53,115			53,465
subtotal		339,008			347,772			273,913			233,961			389,467


Payoffs		(137,932	)		(77,603	)		(148,400	)		(86,250	)		(77,961	)
Amortization		(60,583	)		(151,674	)		(83,640	)		(90,711	)		(106,610	)
Loan sales		(67,852	)		(43,868	)		(42,945	)		(55,321	)		(29,861	)
Net line utilization		(75,651	)		9,426			1,929			(4,150	)		(11,609	)
Charge-offs & OREO		(3,356	)		(2,668	)		(2,338	)		(2,123	)		(1,777	)

Loans receivable-beginning balance		6,257,744			6,176,359			6,177,840			6,182,434			6,020,785
Loans receivable-ending balance	$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840		$	6,182,434

Deposits were $6.44 billion at the end of the fourth quarter of 2024, up $32.6 million, or 0.5%, from $6.40 billion at the end of the prior quarter. Driving the change was a $44.8 million increase in noninterest-bearing demand deposits and a $34.7 million increase in money market and savings deposits, partially offset by a $48.0 million decrease in time deposits. Noninterest-bearing demand deposits represented 32.6% of total deposits at December 31, 2024, and the loan-to-deposit ratio was 97.1%.

	As of (in thousands)										Percentage Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24		Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24		vs. Q4-23
Deposit Portfolio
Demand: noninterest-bearing	$	2,096,634	$	2,051,790	$	1,959,963	$	1,933,060	$	2,003,596	2.2	%	4.6	%
Demand: interest-bearing		80,323		79,287		82,981		87,374		87,452	1.3	%	-8.2	%
Money market and savings		1,933,535		1,898,834		1,834,797		1,859,865		1,734,658	1.8	%	11.5	%
Time deposits		2,325,284		2,373,310		2,451,599		2,495,761		2,454,868	-2.0	%	-5.3	%
Total deposits	$	6,435,776	$	6,403,221	$	6,329,340	$	6,376,060	$	6,280,574	0.5	%	2.5	%

	As of
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,
	2024		2024		2024		2024		2023
Composition of Deposit Portfolio
Demand: noninterest-bearing	32.6	%	32.0	%	31.0	%	30.3	%	31.9	%
Demand: interest-bearing	1.2	%	1.2	%	1.3	%	1.4	%	1.4	%
Money market and savings	30.0	%	29.7	%	29.0	%	29.2	%	27.6	%
Time deposits	36.2	%	37.1	%	38.7	%	39.1	%	39.1	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Stockholders’ equity at December 31, 2024, was $732.2 million, down $4.5 million from $736.7 million at September 30, 2024. The decrease was due to a $14.6 million increase in unrealized after-tax losses on securities available for sale and a $1.0 million increase in unrealized after-tax losses on cash flow hedges, all due to changes in interest rates during the fourth quarter of 2024. Hanmi also repurchased 24,500 shares of common stock, at a cost of $0.6 million, during the quarter at an average share price of $22.91. At December 31, 2024, 1,230,500 shares remain under Hanmi’s share repurchase program. Partially offsetting these decreases was $10.2 million of net income, net of dividends paid, for the fourth quarter. Tangible common stockholders’ equity was $721.1 million, or 9.41% of tangible assets, at December 31, 2024, compared with $725.7 million, or 9.42% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At December 31, 2024, Hanmi’s preliminary common equity tier 1 capital ratio was 12.11% and its total risk-based capital ratio was 15.24%, compared with 11.95% and 15.03%, respectively, at the end of the prior quarter.

	As of										Ratio Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Q4-24	Q4-24
	2024		2024		2024		2024		2023		vs. Q3-24	vs. Q4-23
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital	15.24	%	15.03	%	15.24	%	15.20	%	14.95	%	0.21	0.29
Tier 1 risk-based capital	12.46	%	12.29	%	12.46	%	12.40	%	12.20	%	0.17	0.26
Common equity tier 1 capital	12.11	%	11.95	%	12.11	%	12.05	%	11.86	%	0.16	0.25
Tier 1 leverage capital ratio	10.63	%	10.56	%	10.51	%	10.36	%	10.37	%	0.07	0.26
Hanmi Bank
Total risk-based capital	14.43	%	14.27	%	14.51	%	14.50	%	14.27	%	0.16	0.16
Tier 1 risk-based capital	13.36	%	13.23	%	13.47	%	13.44	%	13.26	%	0.13	0.10
Common equity tier 1 capital	13.36	%	13.23	%	13.47	%	13.44	%	13.26	%	0.13	0.10
Tier 1 leverage capital ratio	11.46	%	11.43	%	11.41	%	11.29	%	11.32	%	0.03	0.14

⁽¹⁾Preliminary ratios for December 31, 2024

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.30% of loans at the end of the fourth quarter of 2024, compared with 0.24% at the end of the prior quarter.

Criticized loans totaled $165.3 million at December 31, 2024, up from $160.0 million at the end of the third quarter of 2024. The $5.3 million increase resulted from an $8.0 million increase in special mention loans and a $2.7 million decrease in classified loans. The $8.0 million increase in special mention loans included additions of $13.4 million, offset by loan reductions and pay-downs of $3.8 million, upgrades of $1.3 million and downgrades of $0.3 million. The $2.7 million decrease in classified loans resulted from $2.9 million of charge-offs, $2.4 million of payoffs, $1.4 million of upgrades and $1.6 million of amortization and paydowns, offset by loan downgrades of $2.7 million and lease downgrades of $2.9 million.

Nonperforming loans were $14.3 million at December 31, 2024, down from $15.5 million at the end of the prior quarter. The decrease primarily reflects pay-offs of $1.8 million, $1.0 million in loan upgrades, $0.8 million in paydowns, and charge-offs of $2.9 million. Offsetting the decrease were additions of $5.5 million.

Nonperforming assets were $14.4 million at the end of the fourth quarter of 2024, down from $16.3 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.19% at December 31, 2024, and 0.21% at the end of the prior quarter.

Gross charge-offs for the fourth quarter of 2024 were $3.4 million, compared with $3.8 million for the preceding quarter. Charge-offs included $2.9 million on equipment financing agreements. Recoveries of previously charged-off loans were $3.5 million in the fourth quarter of 2024. As a result, there were $0.1 million of net recoveries for the fourth quarter of 2024, compared to net charge-offs of $0.9 million for the prior quarter. For 2024, net charge-offs were 0.07% of average loans, compared with 0.12% for 2023.

The allowance for credit losses was $70.1 million at December 31, 2024, compared with $69.2 million at September 30, 2024. Specific allowances for loans increased $1.0 million, while the allowance for quantitative and qualitative considerations remained relatively unchanged. The ratio of the allowance for credit losses to loans was 1.12% at December 31, 2024 and 1.11% at September 30, 2024.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Q4-24			Q4-24
	2024			2024			2024			2024			2023			vs. Q3-24			vs. Q4-23
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	18,454		$	15,027		$	13,844		$	15,839		$	10,263		$	3,427		$	8,191
Delinquent loans to total loans		0.30	%		0.24	%		0.22	%		0.26	%		0.17	%		0.06			0.13

Criticized loans:
Special mention	$	139,612		$	131,575		$	36,921		$	62,317		$	65,314		$	8,037		$	74,298
Classified		25,683			28,377			33,945			23,670			31,367			(2,694	)		(5,684	)
Total criticized loans	$	165,295		$	159,952		$	70,866		$	85,987		$	96,681		$	5,343		$	68,614

Nonperforming assets:
Nonaccrual loans	$	14,274		$	15,248		$	19,245		$	14,025		$	15,474		$	(974	)	$	(1,200	)
Loans 90 days or more past due and still accruing		–			242			–			–			–			(242	)		–
Nonperforming loans*		14,274			15,490			19,245			14,025			15,474			(1,216	)		(1,200	)
Other real estate owned, net		117			772			772			117			117			(655	)		–
Nonperforming assets**	$	14,391		$	16,262		$	20,017		$	14,142		$	15,591		$	(1,871	)	$	(1,200	)

Nonperforming assets to assets*		0.19	%		0.21	%		0.26	%		0.19	%		0.21	%		-0.02			-0.02
Nonperforming loans to total loans		0.23	%		0.25	%		0.31	%		0.23	%		0.25	%		-0.02			-0.02

* Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
** Excludes repossessed personal property of $0.6 million, $1.2 million, $1.2 million, $1.3 million, and $1.3 million as of Q4-24, Q3-24, Q2-24, Q1-24, and Q4-23, respectively

	As of or for the Three Months Ended (in thousands)
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
	2024			2024			2024			2024			2023
Allowance for credit losses related to loans:
Balance at beginning of period	$	69,163		$	67,729		$	68,270		$	69,462		$	67,313
Credit loss expense (recovery) on loans		855			2,312			1,248			404			(2,880	)
Net loan (charge-offs) recoveries		129			(878	)		(1,789	)		(1,596	)		5,029
Balance at end of period	$	70,147		$	69,163		$	67,729		$	68,270		$	69,462

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		-0.01	%		0.06	%		0.12	%		0.10	%		-0.33	%
Allowance for credit losses to loans		1.12	%		1.11	%		1.10	%		1.11	%		1.12	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	1,984		$	2,010		$	2,297		$	2,474		$	2,463
Credit loss expense (recovery) on off-balance sheet items		90			(26	)		(287	)		(177	)		11
Balance at end of period	$	2,074		$	1,984		$	2,010		$	2,297		$	2,474

Unused commitments to extend credit	$	782,587		$	739,975		$	795,391		$	792,769		$	813,960

⁽¹⁾Annualized

Corporate Developments
On October 24, 2024, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. Hanmi paid the dividend on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

Earnings Conference Call
Hanmi Bank will host its fourth quarter 2024 earnings conference call today, January 28, 2025, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 31 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
the imposition of tariffs or other domestic or international governmental polices impacting the value of the products of our borrowers;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

	December 31,			September 30,			Percentage		December 31,			Percentage
	2024			2024			Change		2023			Change
Assets
Cash and due from banks	$	304,800		$	287,767		5.9	%	$	302,324		0.8	%
Securities available for sale, at fair value		905,798			908,921		-0.3	%		865,739		4.6	%
Loans held for sale, at the lower of cost or fair value		8,579			54,336		-84.2	%		12,013		-28.6	%
Loans receivable, net of allowance for credit losses		6,181,230			6,188,581		-0.1	%		6,112,972		1.1	%
Accrued interest receivable		22,937			21,955		4.5	%		23,371		-1.9	%
Premises and equipment, net		21,404			21,371		0.2	%		21,959		-2.5	%
Customers’ liability on acceptances		1,226			67		N/M			625		96.2	%
Servicing assets		6,457			6,683		-3.4	%		7,070		-8.7	%
Goodwill and other intangible assets, net		11,031			11,031		0.0	%		11,099		-0.6	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385		0.0	%		16,385		0.0	%
Bank-owned life insurance		57,168			56,851		0.6	%		56,335		1.5	%
Prepaid expenses and other assets		140,910			138,351		1.8	%		140,449		0.3	%
Total assets	$	7,677,925		$	7,712,299		-0.4	%	$	7,570,341		1.4	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,096,634		$	2,051,790		2.2	%	$	2,003,596		4.6	%
Interest-bearing		4,339,142			4,351,431		-0.3	%		4,276,978		1.5	%
Total deposits		6,435,776			6,403,221		0.5	%		6,280,574		2.5	%
Accrued interest payable		34,824			52,613		-33.8	%		39,306		-11.4	%
Bank’s liability on acceptances		1,226			67		N/M			625		96.2	%
Borrowings		262,500			300,000		-12.5	%		325,000		-19.2	%
Subordinated debentures		130,638			130,478		0.1	%		130,012		0.5	%
Accrued expenses and other liabilities		80,787			89,211		-9.4	%		92,933		-13.1	%
Total liabilities		6,945,751			6,975,590		-0.4	%		6,868,450		1.1	%

Stockholders’ equity:
Common stock		34			34		0.0	%		34		0.0	%
Additional paid-in capital		591,069			589,567		0.3	%		586,912		0.7	%
Accumulated other comprehensive income		(70,723	)		(55,140	)	-28.3	%		(71,928	)	1.7	%
Retained earnings		350,869			340,718		3.0	%		319,048		10.0	%
Less treasury stock		(139,075	)		(138,470	)	-0.4	%		(132,175	)	-5.2	%
Total stockholders’ equity		732,174			736,709		-0.6	%		701,891		4.3	%
Total liabilities and stockholders’ equity	$	7,677,925		$	7,712,299		-0.4	%	$	7,570,341		1.4	%

N/M – Not meaningful.

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Three Months Ended
	December 31,		September 30,		Percentage		December 31,			Percentage
	2024		2024		Change		2023			Change
Interest and dividend income:
Interest and fees on loans receivable	$	91,545	$	92,182	-0.7	%	$	89,922		1.8	%
Interest on securities		5,866		5,523	6.2	%		4,583		28.0	%
Dividends on FHLB stock		360		356	1.1	%		341		5.6	%
Interest on deposits in other banks		2,342		2,356	-0.6	%		2,337		0.2	%
Total interest and dividend income		100,113		100,417	-0.3	%		97,183		3.0	%
Interest expense:
Interest on deposits		43,406		47,153	-7.9	%		40,277		7.8	%
Interest on borrowings		1,634		1,561	4.7	%		2,112		-22.6	%
Interest on subordinated debentures		1,624		1,652	-1.7	%		1,654		-1.8	%
Total interest expense		46,664		50,366	-7.4	%		44,043		6.0	%
Net interest income before credit loss expense		53,449		50,051	6.8	%		53,140		0.6	%
Credit loss expense		945		2,286	-58.7	%		(2,870	)	132.9	%
Net interest income after credit loss expense		52,504		47,765	9.9	%		56,010		-6.3	%
Noninterest income:
Service charges on deposit accounts		2,192		2,311	-5.1	%		2,391		-8.3	%
Trade finance and other service charges and fees		1,364		1,254	8.8	%		1,245		9.6	%
Gain on sale of Small Business Administration (“SBA”) loans		1,443		1,544	-6.5	%		1,448		-0.3	%
Other operating income		2,358		3,329	-29.2	%		1,596		47.7	%
Total noninterest income		7,357		8,438	-12.8	%		6,680		10.1	%
Noninterest expense:
Salaries and employee benefits		20,498		20,851	-1.7	%		20,062		2.2	%
Occupancy and equipment		4,503		4,499	0.1	%		4,604		-2.2	%
Data processing		3,800		3,839	-1.0	%		3,487		9.0	%
Professional fees		1,821		1,492	22.1	%		1,977		-7.9	%
Supplies and communications		551		538	2.4	%		613		-10.1	%
Advertising and promotion		821		631	30.1	%		990		-17.1	%
Other operating expenses		2,540		3,230	-21.4	%		3,478		-27.0	%
Total noninterest expense		34,534		35,080	-1.6	%		35,211		-1.9	%
Income before tax		25,327		21,123	19.9	%		27,479		-7.8	%
Income tax expense		7,632		6,231	22.5	%		8,846		-13.7	%
Net income	$	17,695	$	14,892	18.8	%	$	18,633		-5.0	%

Basic earnings per share:	$	0.59	$	0.49			$	0.61
Diluted earnings per share:	$	0.58	$	0.49			$	0.61

Weighted-average shares outstanding:
Basic		29,933,644		29,968,004				30,189,578
Diluted		30,011,773		30,033,679				30,251,315
Common shares outstanding		30,195,999		30,196,755				30,368,655

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Twelve Months Ended
	December 31,		December 31,		Percentage
	2024		2023		Change
Interest and dividend income:
Interest and fees on loans receivable	$	366,153	$	339,811		7.8	%
Interest on securities		21,583		16,938		27.4	%
Dividends on FHLB stock		1,436		1,229		16.8	%
Interest on deposits in other banks		9,611		11,350		-15.3	%
Total interest and dividend income		398,783		369,328		8.0	%
Interest expense:
Interest on deposits		182,692		134,708		35.6	%
Interest on borrowings		6,746		6,867		-1.8	%
Interest on subordinated debentures		6,571		6,482		1.4	%
Total interest expense		196,009		148,057		32.4	%
Net interest income before credit loss expense		202,774		221,271		-8.4	%
Credit loss expense		4,419		4,342		1.8	%
Net interest income after credit loss expense		198,355		216,929		-8.6	%
Noninterest income:
Service charges on deposit accounts		9,381		10,147		-7.5	%
Trade finance and other service charges and fees		5,309		4,832		9.9	%
Gain on sale of Small Business Administration (“SBA”) loans		6,112		5,701		7.2	%
Other operating income		10,783		13,499		-20.1	%
Total noninterest income		31,585		34,179		-7.6	%
Noninterest expense:
Salaries and employee benefits		83,368		81,398		2.4	%
Occupancy and equipment		18,146		18,340		-1.1	%
Data processing		14,876		13,695		8.6	%
Professional fees		6,956		6,255		11.2	%
Supplies and communications		2,261		2,479		-8.8	%
Advertising and promotion		3,028		3,105		-2.5	%
Other operating expenses		12,700		11,255		12.8	%
Total noninterest expense		141,335		136,527		3.5	%
Income before tax		88,605		114,581		-22.7	%
Income tax expense		26,404		34,540		-23.6	%
Net income	$	62,201	$	80,041		-22.3	%

Basic earnings per share:	$	2.06	$	2.63
Diluted earnings per share:	$	2.05	$	2.62

Weighted-average shares outstanding:
Basic		30,019,815		30,269,740
Diluted		30,102,336		30,330,258
Common shares outstanding		30,195,999		30,368,655

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Three Months Ended
	December 31, 2024								September 30, 2024								December 31, 2023
				Interest		Average						Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,103,264		$	91,545		5.97	%	$	6,112,324		$	92,182		6.00	%	$	6,071,644		$	89,922		5.88	%
Securities ⁽²⁾		998,313			5,866		2.38	%		986,041			5,523		2.27	%		961,551			4,582		1.93	%
FHLB stock		16,385			360		8.75	%		16,385			356		8.65	%		16,385			341		8.25	%
Interest-bearing deposits in other banks		204,408			2,342		4.56	%		183,027			2,356		5.12	%		181,140			2,338		5.12	%
Total interest-earning assets		7,322,370			100,113		5.45	%		7,297,777			100,417		5.48	%		7,230,720			97,183		5.34	%

Noninterest-earning assets:
Cash and due from banks		54,678								54,843								61,146
Allowance for credit losses		(69,291	)							(67,906	)							(68,319	)
Other assets		246,744								251,421								251,660

Total assets	$	7,554,501							$	7,536,135							$	7,475,207

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	79,784		$	26		0.13	%	$	83,647		$	31		0.15	%	$	86,679		$	29		0.13	%
Money market and savings		1,934,540			16,564		3.41	%		1,885,799			17,863		3.77	%		1,669,973			14,379		3.42	%
Time deposits		2,346,363			26,816		4.55	%		2,427,737			29,259		4.79	%		2,417,803			25,869		4.24	%
Total interest-bearing deposits		4,360,687			43,406		3.96	%		4,397,183			47,153		4.27	%		4,174,455			40,277		3.83	%
Borrowings		141,604			1,634		4.59	%		143,479			1,561		4.33	%		205,951			2,113		4.07	%
Subordinated debentures		130,567			1,624		4.97	%		130,403			1,652		5.07	%		129,933			1,653		5.09	%
Total interest-bearing liabilities		4,632,858			46,664		4.01	%		4,671,065			50,366		4.29	%		4,510,339			44,043		3.88	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,967,789								1,908,833								2,025,212
Other liabilities		162,064								171,987								177,321
Stockholders’ equity		791,790								784,250								762,335

Total liabilities and stockholders’ equity	$	7,554,501							$	7,536,135							$	7,475,207

Net interest income				$	53,449							$	50,051							$	53,140

Cost of deposits							2.73	%							2.97	%							2.58	%
Net interest spread (taxable equivalent basis)							1.44	%							1.19	%							1.47	%
Net interest margin (taxable equivalent basis)							2.91	%							2.74	%							2.92	%



⁽¹⁾ Includes average loans held for sale
⁽²⁾ Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Twelve Months Ended
	December 31, 2024								December 31, 2023
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,110,713		$	366,153		5.99	%	$	5,968,339		$	339,811		5.69	%
Securities ⁽²⁾		983,434			21,583		2.22	%		967,231			16,938		1.78	%
FHLB stock		16,385			1,437		8.76	%		16,385			1,229		7.50	%
Interest-bearing deposits in other banks		192,342			9,610		5.00	%		230,835			11,350		4.92	%
Total interest-earning assets		7,302,874			398,783		5.46	%		7,182,790			369,328		5.15	%

Noninterest-earning assets:
Cash and due from banks		55,830								62,049
Allowance for credit losses		(68,553	)							(70,501	)
Other assets		248,820								240,779

Total assets	$	7,538,971							$	7,415,117

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	83,807		$	119		0.14	%	$	97,388		$	117		0.12	%
Money market and savings		1,870,541			68,304		3.65	%		1,547,911			44,066		2.85	%
Time deposits		2,433,516			114,269		4.70	%		2,371,520			90,525		3.82	%
Total interest-bearing deposits		4,387,864			182,692		4.16	%		4,016,819			134,708		3.35	%
Borrowings		154,193			6,746		4.38	%		197,409			6,867		3.48	%
Subordinated debentures		130,325			6,571		5.04	%		129,708			6,482		5.00	%
Total interest-bearing liabilities		4,672,382			196,009		4.20	%		4,343,936			148,057		3.41	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,920,492								2,173,813
Other liabilities		165,288								149,460
Stockholders’ equity		780,809								747,908

Total liabilities and stockholders’ equity	$	7,538,971							$	7,415,117

Net interest income				$	202,774							$	221,271

Cost of deposits							2.90	%							2.18	%
Net interest spread (taxable equivalent basis)							1.27	%							1.74	%
Net interest margin (taxable equivalent basis)							2.78	%							3.08	%


⁽¹⁾ Includes average loans held for sale
⁽²⁾ Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.

Non-GAAP Financial Measures

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi. This disclosure should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)
(In thousands, except share, per share data and ratios)

	December 31,			September 30,			June 30,			March 31,			December 31,
Hanmi Financial Corporation	2024			2024			2024			2024			2023
Assets	$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046		$	7,570,341
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,048	)		(11,074	)		(11,099	)
Tangible assets	$	7,666,894		$	7,701,268		$	7,575,299		$	7,500,972		$	7,559,242

Stockholders’ equity ⁽¹⁾	$	732,174		$	736,709		$	707,059		$	703,100		$	701,891
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,048	)		(11,074	)		(11,099	)
Tangible stockholders’ equity ⁽¹⁾	$	721,143		$	725,678		$	696,011		$	692,026		$	690,792

Stockholders’ equity to assets		9.54	%		9.55	%		9.32	%		9.36	%		9.27	%
Tangible common equity to tangible assets ⁽¹⁾		9.41	%		9.42	%		9.19	%		9.23	%		9.14	%

Common shares outstanding		30,195,999			30,196,755			30,272,110			30,276,358			30,368,655
Tangible common equity per common share	$	23.88		$	24.03		$	22.99		$	22.86		$	22.75


⁽¹⁾There were no preferred shares outstanding at the periods indicated.

The MIL Network –

January 29, 2025

MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three Months and Year Ended December 31, 2024 and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

WESTFIELD, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and twelve months ended December 31, 2024. For the three months ended December 31, 2024, the Company reported net income of $3.3 million, or $0.16 per diluted share, compared to net income of $2.5 million, or $0.12 per diluted share, for the three months ended December 31, 2023. On a linked quarter basis, net income was $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024, as compared to net income of $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024. For the twelve months ended December 31, 2024, net income was $11.7 million, or $0.56 per diluted share, compared to net income of $15.1 million, or $0.70 per diluted share, for the twelve months ended December 31, 2023.

The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about February 26, 2025 to shareholders of record on February 12, 2025.

James C. Hagan, President and Chief Executive Officer, commented, “I am pleased to report the results for the fourth quarter of 2024. Our strong, diversified, core deposit base was integral in effectively managing our funding costs over the last two years during a rising rate environment. Our disciplined approach to managing our funding costs resulted in an increase in net interest income for the second consecutive quarter in 2024.

As we continue to manage the balance sheet, we remain focused on identifying initiatives to mitigate top line pressures and improve efficiencies over the Company’s long-term. In 2024, total deposits increased $118.9 million, or 5.6%, and core deposits represented 68.9% of total deposits as compared to 2023. The loan-to-deposit ratio decreased to 91.5%. We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate levels of risk and return.

Our asset quality remains strong, with nonaccrual loans at 0.26% of total loans, and classified loans, which we define as special mention and substandard loans, at 1.9% of total loans as of December 31, 2024. Our loan portfolio continues to perform well and we continue to proactively identify and manage credit risk within the loan portfolio, consistent with our prudent credit culture.

The Company is considered to be well-capitalized and we remain disciplined in our capital management strategies. During the twelve months ended December 31, 2024, we repurchased 934,282 shares of the Company’s common stock at an average price per share of $7.94. We continue to believe that buying back shares represents a prudent use of the Company’s capital. We are pleased to be able to continue to return value to shareholders through share repurchases. Although the banking environment has been challenged, our capital management strategies have been critical to sustaining growth in book value per share, which increased to $11.30, while tangible book value per share, a non-GAAP financial measure, increased $0.33, or 3.2%, to $10.63 at December 31, 2024.”

Hagan concluded, “Over the last few years, the banking industry as a whole experienced challenging headwinds, however, our team remains focused on serving our customers and supporting our community. Our commitment to strong capital and liquidity levels gives us a strong foundation to take advantage of opportunities in the markets we serve and to enhance shareholder value in the long term.”

Key Highlights:

Loans and Deposits

Total loans increased $42.9 million, or 2.1%, from $2.0 billion at December 31, 2023 to $2.1 billion at December 31, 2024. Residential real estate loans, including home equity loans, increased $53.5 million, or 7.4%, commercial real estate loans decreased $4.0 million, or 0.4%, commercial and industrial loans decreased $5.7 million, or 2.7%, and consumer loans decreased $1.1 million, or 19.8%.

Total deposits increased $118.9 million, or 5.6%, from $2.1 billion at December 31, 2023 to $2.3 billion at December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $26.7 million, or 1.7%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.6 billion, or 68.9% of total deposits, at December 31, 2024. Time deposits increased $92.2 million, or 15.1%, from $611.4 million at December 31, 2023 to $703.6 million at December 31, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024 and at December 31, 2023. The loan-to-deposit ratio decreased from 94.6% at December 31, 2023 to 91.5% at December 31, 2024.

Liquidity

The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At December 31, 2024, the Company had $1.1 billion in immediately available liquidity, compared to $643.6 million in uninsured deposits, or 28.4% of total deposits, representing a coverage ratio of 171.8%.

Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep account or a reciprocal time deposit through the Certificate of Deposit Account Registry System. IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.

Allowance for Credit Losses and Credit Quality

At December 31, 2024, the allowance for credit losses was $19.5 million, or 0.94% of total loans and 362.9% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans, at December 31, 2023. At December 31, 2024, nonperforming loans totaled $5.4 million, or 0.26% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. Total delinquent loans decreased $1.0 million, or 16.7%, from $6.0 million, or 0.30% of total loans, at December 31, 2023 to $5.0 million, or 0.24% of total loans, at December 31, 2024. At December 31, 2024 and December 31, 2023, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin was 2.41% for the three months ended December 31, 2024, compared to 2.40% for the three months ended September 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.43% for the three months ended December 31, 2024, compared to 2.42% for the three months ended September 30, 2024.

Stock Repurchase Program

On May 22, 2024, the Board of Directors authorized a new stock repurchase plan (the “2024 Plan”) under which the Company may repurchase up to 1.0 million shares, or approximately 4.6%, of the Company’s then-outstanding shares of common stock.

During the three months ended December 31, 2024, the Company repurchased 220,000 shares of common stock under the 2024 Plan, with an average price per share of $9.00. During the twelve months ended December 31, 2024, the Company repurchased 934,282 shares of common stock under the 2024 Plan and the previously existing share repurchase plan, as applicable, with an average price per share of $7.94. As of December 31, 2024, there were 472,318 shares of common stock available for repurchase under the 2024 Plan.

The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under the 2024 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2024 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.

Book Value and Tangible Book Value

The Company’s book value per share was $11.30 at December 31, 2024, compared to $10.96 at December 31, 2023, while tangible book value per share, a non-GAAP financial measure, increased $0.33, or 3.2%, from $10.30 at December 31, 2023 to $10.63 at December 31, 2024. See pages 20-22 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended December 31, 2024 Compared to the Three Months Ended September 30, 2024

The Company reported an increase in net income of $1.4 million, or 72.7%, from $1.9 million, or $0.09 per diluted share, for the three months ended September 30, 2024, to $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024. Net interest income increased $545,000, or 3.7%, the provision for credit losses decreased $1.7 million, non-interest income increased $113,000, or 3.6%, and non-interest expense increased $520,000, or 3.6%. Return on average assets and return on average equity were 0.49% and 5.48%, respectively, for the three months ended December 31, 2024, compared to 0.29% and 3.19%, respectively, for the three months ended September 30, 2024.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, increased $545,000, or 3.7%, to $15.3 million for the three months ended December 31, 2024, from $14.7 million for the three months ended September 30, 2024. The increase in net interest income was primarily due to an increase in interest income of $746,000, or 2.7%, partially offset by an increase in interest expense of $201,000, or 1.5%.

The net interest margin was 2.41% for the three months ended December 31, 2024, compared to 2.40% for the three months ended September 30, 2024. The net interest margin, on a tax-equivalent basis, was 2.43% for the three months ended December 31, 2024, compared to 2.42% for the three months ended September 30, 2024. During the three months ended December 31, 2024 and during the three months ended September 30, 2024, the Company had a fair value hedge which contributed to an increase in the net interest margin of one basis point for the three months ended December 31, 2024, compared to an increase of seven basis points during the three months ended September 30, 2024. Excluding the interest income attributed to the fair value hedge, the net interest margin increased seven basis points from 2.33% for the three months ended September 30, 2024 to 2.40% for the three months ended December 31, 2024, respectively. The fair value hedge matured in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.52% for the three months ended December 31, 2024, compared to 4.54% for the three months ended September 30, 2024. Excluding the impact of the fair value hedge discussed above, the average yield on interest-earnings assets, without the impact of tax-equivalent adjustments, increased four basis points to 4.51% during the three months ended December 31, 2024, compared to 4.47% during the three months ended September 30, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.86% for the three months ended December 31, 2024, compared to 4.90% for the three months ended September 30, 2024. Excluding the impact of the fair value hedge discussed above, the average yield on loans, without the impact of tax-equivalent adjustments, increased two basis points to 4.84% during the three months ended December 31, 2024, compared to 4.82% during the three months ended September 30, 2024. During the three months ended December 31, 2024, average interest-earning assets increased $75.8 million, or 3.1% to $2.5 billion, primarily due to an increase in average loans of $24.2 million, or 1.2%, an increase in average short-term investments, consisting of cash and cash equivalents, of $44.8 million, or 139.7%, and an increase in average securities of $6.8 million, or 1.9%.

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased four basis points from 2.24% for the three months ended September 30, 2024 to 2.20% for the three months ended December 31, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased five basis points to 0.98% for the three months ended December 31, 2024, from 0.93% for the three months ended September 30, 2024. The average cost of time deposits decreased 13 basis points from 4.44% for the three months ended September 30, 2024, to 4.31% for the three months ended December 31, 2024. The average cost of borrowings, including subordinated debt, decreased one basis point from 5.05% for the three months ended September 30, 2024 to 5.04% for the three months ended December 31, 2024. Average demand deposits, an interest-free source of funds, increased $20.0 million, or 3.6%, from $559.2 million, or 25.7% of total average deposits, for the three months ended September 30, 2024, to $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended December 31, 2024, the Company recorded a reversal of credit losses of $762,000, compared to a provision for credit losses of $941,000 during the three months ended September 30, 2024. The provision for credit losses includes a reversal of credit losses on loans of $553,000 and a reversal of credit losses on unfunded loan commitments of $209,000. The reversal of credit losses on loans was due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology as well as changes in the loan portfolio mix. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. The decrease in reserves on unfunded loan commitments was due to an decrease in commercial real estate unfunded loan commitments of $19.5 million, or 10.0%, from $195.3 million at September 30, 2024 to $175.8 million at December 31, 2024. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the three months ended December 31, 2024, the Company recorded net recoveries of $128,000, compared to net charge-offs of $98,000 for the three months ended September 30, 2024.

Non-Interest Income

On a sequential quarter basis, non-interest income increased $113,000, or 3.6%, to $3.3 million for the three months ended December 31, 2024, from $3.1 million for the three months ended September 30, 2024. During the three months ended December 31, 2024, service charges and fees on deposits decreased $40,000, or 1.7%, to $2.3 million from the three months ended September 30, 2024. Income from bank-owned life insurance (“BOLI”) increased $16,000, or 3.4%, from the three months ended September 30, 2024 to $486,000 for the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported $187,000 in other income from loan-level swap fees on commercial loans, compared to $74,000 during the three months ended September 30, 2024. During the three months ended December 31, 2024, the Company reported a loss of $11,000 from mortgage banking activities, compared to income from mortgage banking activities of $246,000, during the three months ended September 30, 2024. During the three months ended December 31, 2024, the Company reported unrealized losses on marketable equity securities of $9,000, compared to unrealized gains of $10,000, during the three months ended September 30, 2024. During the three months ended December 31, 2024, the Company reported gains on non-marketable equity investments of $300,000 and did not have comparable income during the three months ended September 30, 2024.

Non-Interest Expense

For the three months ended December 31, 2024, non-interest expense increased $520,000, or 3.6%, to $14.9 million from $14.4 million for the three months ended September 30, 2024. Salaries and related benefits increased $317,000, or 3.9%, primarily related to incentive compensation accrual adjustments due to revised payout estimates and an increase in health insurance benefits. FDIC insurance expense increased $51,000, or 15.1%, occupancy expense increased $39,000, or 3.2%, primarily due to snow removal costs of $47,000, advertising expense increased $39,000, or 14.4%, data processing expense increased $31,000, or 3.6%, software expenses increased $30,000, or 4.9%, furniture and equipment expense increased $22,000, or 4.6%, and other non-interest expense increased $116,000, or 8.8%. These increases were partially offset by a decrease in professional fees of $69,000, or 12.8%, and a decrease in debit card processing and ATM network costs of $56,000, or 8.6%.

For the three months ended December 31, 2024 and the three months ended September 30, 2024, the efficiency ratio was 80.6%. For the three months ended December 31, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.9% compared to 80.7% for the three months ended September 30, 2024. The increase in the adjusted efficiency ratio was driven by higher expenses during the three months ended December 31, 2024. See pages 20-22 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended December 31, 2024 was $1.1 million, with an effective tax rate of 24.6%, compared to $618,000, with an effective tax rate of 24.5%, for the three months ended September 30, 2024.

Net Income for the Three Months Ended December 31, 2024 Compared to the Three Months Ended December 31, 2023

The Company reported net income of $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024, compared to net income of $2.5 million, or $0.12 per diluted share, for the three months ended December 31, 2023. Net interest income decreased $903,000, or 5.6%, provision for credit losses decreased $1.2 million, non-interest income increased $540,000, or 19.9%, and non-interest expense increased $141,000, or 1.0%, during the same period. Return on average assets and return on average equity were 0.49% and 5.48%, respectively, for the three months ended December 31, 2024, compared to 0.39% and 4.31%, respectively, for the three months ended December 31, 2023.

Net Interest Income and Net Interest Margin

Net interest income decreased $903,000, or 5.6%, to $15.3 million, for the three months ended December 31, 2024, from $16.2 million for the three months ended December 31, 2023. The decrease in net interest income was due to an increase in interest expense of $2.7 million, or 25.7%, partially offset by an increase in interest and dividend income of $1.8 million, or 6.8%. During the three months ended December 31, 2024 and the three months ended December 31, 2023, the Company had a fair value hedge which contributed $74,000 to interest income during the three months ended December 31, 2024, compared to $459,000 during the three months ended December 31, 2023. The fair value hedge matured in October of 2024. The increase in interest expense was a result of competitive pricing on deposits due to the continued high interest rate environment and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits.

The net interest margin was 2.41% for the three months ended December 31, 2024, compared to 2.64% for the three months ended December 31, 2023. The net interest margin, on a tax-equivalent basis, was 2.43% for the three months ended December 31, 2024, compared to 2.66% for the three months ended December 31, 2023. The decrease in the net interest margin was primarily due to an increase in the average cost of interest-bearing liabilities and the unfavorable shift in the deposit mix from low cost core deposits to high cost time deposits, which was partially offset by an increase in the average yield on interest-earning assets. During the three months ended December 31, 2024, the Company had a fair value hedge which contributed to an increase in the net interest margin of one basis point, compared to an increase of eight basis points during the three months ended December 31, 2023. The fair value hedge matured in October of 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.52% for the three months ended December 31, 2024, compared to 4.38% for the three months ended December 31, 2023. The average loan yield, without the impact of tax-equivalent adjustments, was 4.86% for the three months ended December 31, 2024, compared to 4.71% for the three months ended December 31, 2023. During the three months ended December 31, 2024, average interest-earning assets increased $89.9 million, or 3.7%, to $2.5 billion, primarily due to an increase in average loans of $45.7 million, or 2.3%, an increase in average short-term investments, consisting of cash and cash equivalents, of $34.0 million, or 79.3%, an increase in average securities of $6.4 million, or 1.8%, and an increase in average other investments of $3.8 million, or 31.4%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 39 basis points from 1.81% for the three months ended December 31, 2023, to 2.20% for the three months ended December 31, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 22 basis points to 0.98% for the three months ended December 31, 2024, from 0.76% for the three months ended December 31, 2023. The average cost of time deposits increased 53 basis points from 3.78% for the three months ended December 31, 2023 to 4.31% for the three months ended December 31, 2024. The average cost of borrowings, including subordinated debt, increased 21 basis points from 4.83% for the three months ended December 31, 2023 to 5.04% for the three months ended December 31, 2024. Average demand deposits, an interest-free source of funds, decreased $9.6 million, or 1.6%, from $588.7 million, or 27.0% of total average deposits, for the three months ended December 31, 2023, to $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024.

Provision for (Reversal of) Credit Losses

During the three months ended December 31, 2024, the Company recorded a reversal of credit losses of $762,000, compared to a provision for credit losses of $486,000 during the three months ended December 31, 2023. The decrease was primarily due to a decrease in unfunded commercial real estate loan commitments, as well as changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net recoveries of $128,000 for the three months ended December 31, 2024, as compared to net charge-offs of $136,000 for the three months ended December 31, 2023.

Non-Interest Income

Non-interest income increased $540,000, or 19.9%, from $2.7 million for the three months ended December 31, 2023, to $3.3 million for the three months ended December 31, 2024. Service charges and fees on deposits increased $18,000, or 0.8%, and income from BOLI increased $54,000, or 12.5%, from the three months ended December 31, 2023 to the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported $187,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended December 31, 2023. During the three months ended December 31, 2024, the Company reported a loss of $11,000 from mortgage banking activities and did not have comparable loss during the three months ended December 31, 2023. During the three months ended December 31, 2024 and the three months ended December 31, 2023, the Company reported $9,000 and $1,000, respectively, in unrealized losses on marketable equity securities. During the three months ended December 31, 2024, the Company reported a gain on non-marketable equity investments of $300,000 and did not have comparable non-interest income during the three months ended December 31, 2023.

Non-Interest Expense

For the three months ended December 31, 2024, non-interest expense increased $141,000, or 1.0%, to $14.9 million from $14.8 million for the three months ended December 31, 2023. During the three months ended December 31, 2023, the Company reached an agreement-in-principle to settle purported class action lawsuits concerning the Company’s deposit products and related disclosures, specifically involving overdraft fees and insufficient funds fees. This agreement-in-principle reflects our business decision to avoid the costs, uncertainties and distractions of further litigation. Excluding the legal settlement accrual of $510,000 during the three months ended December 31, 2023, non-interest expense increased $651,000, or 4.6%, from $14.3 million for the three months ended December 31, 2023 to $14.9 million for the three months ended December 31, 2024.

Salaries and related benefits increased $690,000, or 8.9%, to $8.4 million, primarily related to incentive compensation accrual adjustments due to revised payout estimates and annual merit increases. Data processing expense increased $112,000, or 14.2%, occupancy expense increased $58,000, or 4.8%, FDIC insurance expense increased $51,000, or 15.1%, software related expenses increased $44,000, or 7.4%, debit card processing and ATM network costs increased $34,000, or 6.0%, and furniture and equipment related expenses increased $11,000, or 2.2%. These increases were partially offset by a decrease in professional fees of $203,000, or 30.1%, a decrease in advertising expense of $67,000, or 17.8%, and a decrease in other non-interest expense of $589,000, or 29.1%. Excluding the $510,000 legal settlement accrual, other non-interest expense decreased $79,000, or 5.2%.

For the three months ended December 31, 2024, the efficiency ratio was 80.6%, compared to 78.3% for the three months ended December 31, 2023. For the three months ended December 31, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.9% compared to 78.3% for the three months ended December 31, 2023. The increase in the efficiency ratio and the non-GAAP adjusted efficiency ratio was primarily driven by lower revenues during the three months ended December 31, 2024, compared to the three months ended December 31, 2023. See pages 20-22 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

For the three months ended December 31, 2024, income tax expense was $1.1 million, with an effective tax rate of 24.6%, compared to $1.1 million, with an effective tax rate of 30.6%, for the three months ended December 31, 2023. For the three months ended December 31, 2023, the effective tax rate was negatively impacted by discrete items totaling $285,000.

Net Income for the Twelve Months Ended December 31, 2024 Compared to the Twelve Months Ended December 31, 2023

For the twelve months ended December 31, 2024, the Company reported net income of $11.7 million, or $0.56 per diluted share, compared to $15.1 million, or $0.70 per diluted share, for the twelve months ended December 31, 2023. Net interest income decreased $8.1 million, or 11.9%, provision for credit losses decreased $1.5 million, non-interest income increased $2.0 million, or 18.4%, and non-interest expense increased $78,000, or 0.1%, during the same period in 2023. Return on average assets and return on average equity were 0.45% and 4.93% for the twelve months ended December 31, 2024, respectively, compared to 0.59% and 6.47% for the twelve months ended December 31, 2023, respectively.

Net Interest Income and Net Interest Margin

During the twelve months ended December 31, 2024, net interest income decreased $8.1 million, or 11.9%, to $59.8 million, compared to $67.9 million for the twelve months ended December 31, 2023. The decrease in net interest income was primarily due to an increase in interest expense of $16.8 million, or 50.6%, partially offset by an increase in interest and dividend income of $8.7 million, or 8.6%.

The net interest margin for the twelve months ended December 31, 2024 was 2.45%, compared to 2.82% for the twelve months ended December 31, 2023. The net interest margin, on a tax-equivalent basis, was 2.47% for the twelve months ended December 31, 2024, compared to 2.84% for the twelve months ended December 31, 2023.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 30 basis points from 4.20% for the twelve months ended December 31, 2023 to 4.50% for the twelve months ended December 31, 2024. The average yield on loans, without the impact of tax-equivalent adjustments, increased 32 basis points from 4.54% for the twelve months ended December 31, 2023 to 4.86% for the twelve months ended December 31, 2024. During the twelve months ended December 31, 2024, average interest-earning assets increased $33.5 million, or 1.4%, to $2.4 billion, compared to the twelve months ended December 31, 2023, primarily due to an increase in average loans of $29.0 million, or 1.4%, an increase in average short-term investments, consisting of cash and cash equivalents, of $12.8 million, or 62.5%, and an increase in average other investments of $2.2 million, or 18.1%, partially offset by a decrease in average securities of $10.6 million, or 2.9%.

During the twelve months ended December 31, 2024, the average cost of funds, including non-interest-bearing demand accounts and borrowings, increased 70 basis points from 1.44% for the twelve months ended December 31, 2023 to 2.14%. For the twelve months ended December 31, 2024, the average cost of core deposits, including non-interest-bearing demand deposits, increased 24 basis points from 0.65% for the twelve months ended December 31, 2023, to 0.89%. The average cost of time deposits increased 129 basis points from 3.03% for the twelve months ended December 31, 2023 to 4.32% for the twelve months ended December 31, 2024. The average cost of borrowings, which include borrowings and subordinated debt, increased 16 basis points from 4.84% for the twelve months ended December 31, 2023 to 5.00% for the twelve months ended December 31, 2024.

For the twelve months ended December 31, 2024, average demand deposits, an interest-free source of funds, decreased $41.4 million, or 6.9%, from $602.7 million, or 27.8% of total average deposits, for the twelve months ended December 31, 2023, to $561.3 million, or 25.8% of total average deposits.

Provision for (Reversal of) Credit Losses

During the twelve months ended December 31, 2024, the Company recorded a reversal of credit losses of $665,000, compared to a provision for credit losses of $872,000 during the twelve months ended December 31, 2023. The decrease in reserves was primarily due to changes in the economic environment and related adjustments to the quantitative components of the CECL methodology. During the twelve months ended December 31, 2024, the Company recorded net recoveries of $87,000, compared to net charge-offs of $2.0 million for the twelve months ended December 31, 2023. The charge-offs during the twelve months ended December 31, 2023 were related to one commercial relationship acquired in October 2016 from Chicopee Bancorp, Inc. Specifically, the Company recorded a $1.9 million charge-off on the acquired commercial relationship, which represented the non-accretable credit mark that was required to be grossed-up to the loan’s amortized cost basis with a corresponding increase to the allowance for credit losses under the CECL implementation.

The decrease in the provision for credit losses was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, inflation and the concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

Non-Interest Income

For the twelve months ended December 31, 2024, non-interest income increased $2.0 million, or 18.4%, from $10.9 million for the twelve months ended December 31, 2023 to $12.9 million. During the twelve months ended December 31, 2023, the Company recorded a non-recurring final termination expense of $1.1 million related to the defined benefit pension plan termination. During the twelve months ended, December 31, 2023, the Company also recorded a non-taxable gain of $778,000 on BOLI death benefits and did not have a comparable gain during the twelve months ended December 31, 2024. Excluding the defined benefit pension plan termination expense and the BOLI death benefit, non-interest income increased $1.6 million, or 14.6%.

During the twelve months ended December 31, 2024, service charges and fees increased $346,000, or 3.9%, and income from BOLI increased $91,000, or 5.0%, from $1.8 million for the twelve months ended December 31, 2023 to $1.9 million. During the twelve months ended December 31, 2024, the Company recorded other income from loan-level swap fees on commercial loans of $261,000 and did not have comparable income during the twelve months ended December 31, 2023. During the twelve months ended December 31, 2024, the Company reported a gain of $1.3 million on non-marketable equity investments, compared to a gain of $590,000 during the twelve months ended December 31, 2023. During the twelve months ended December 31, 2024, the Company reported a loss on the disposal of premises and equipment of $6,000, compared to a loss of $3,000 during the twelve months ended December 31, 2023. During the twelve months ended December 31, 2023, the Company also reported unrealized losses on marketable equity securities of $1,000, compared to unrealized gains on marketable equity securities of $13,000 during the twelve months ended December 31, 2024.

Non-Interest Expense

For the twelve months ended December 31, 2024, non-interest expense increased $78,000, or 0.1%, to $58.4 million from the twelve months ended December 31, 2023. During the twelve months ended December 31, 2023, the Company reached an agreement-in-principle to settle purported class action lawsuits concerning the Company’s deposit products and related disclosures, specifically involving overdraft fees and insufficient funds fees. This agreement-in-principle reflects our business decision to avoid the costs, uncertainties and distractions of further litigation. Excluding the legal settlement accrual of $510,000, non-interest expense increased $588,000, or 1.0%, from $57.8 million for the twelve months ended December 31, 2023 to $58.4 million for the twelve months ended December 31, 2024.

During the same period, salaries and related benefits increased $472,000, or 1.5%, software expenses increased $208,000, or 9.0%, data processing expense increased $320,000, or 10.1%, debit card processing and ATM network costs increased $298,000, or 13.9%, occupancy expense increased $146,000, or 3.0%, due to higher repair and maintenance costs, real estate taxes, and depreciation expense. FDIC insurance expense increased $139,000, or 10.5%. These increases were partially offset by a decrease in professional fees of $571,000, or 20.9%, which is comprised of legal fees, audit and other professional fees. During the three months ended December 31, 2023, professional fees included legal fees related to the settlement of the purported class action lawsuits. Advertising expense decreased $226,000, or 15.1%, and other non-interest expense, excluding the $510,000 legal settlement accrual, decreased $199,000, or 3.5%.

For the twelve months ended December 31, 2024, the efficiency ratio was 80.4%, compared to 74.0% for the twelve months ended December 31, 2023. For the twelve months ended December 31, 2024, the adjusted efficiency ratio, a non-GAAP financial measure, was 81.8%, compared to 74.3% for the twelve months ended December 31, 2023. See pages 20-22 for the related efficiency ratio calculations and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

For the twelve months ended December 31, 2024, income tax expense was $3.3 million, with an effective tax rate of 22.0%, compared to $4.5 million, with an effective tax rate of 23.1%, for twelve months ended December 31, 2023. The decrease in income tax expense for the twelve months ended December 31, 2024 compared to the twelve months December 31, 2023 was due to lower income before taxes in 2024.

Balance Sheet

At December 31, 2024, total assets were $2.7 billion, an increase of $88.5 million, or 3.5%, from December 31, 2023. The increase in total assets was primarily due to an increase in total loans of $42.9 million, or 2.1%, an increase in cash and cash equivalents of $37.6 million, or 130.4%, and an increase in investment securities of $5.5 million, or 1.5%.

Investments

At December 31, 2024, the investment securities portfolio totaled $366.1 million, or 13.8% of total assets, compared to $360.7 million, or 14.1% of total assets, at December 31, 2023. At December 31, 2024, the Company’s available-for-sale securities portfolio, recorded at fair market value, increased $23.6 million, or 17.2%, from $137.1 million at December 31, 2023 to $160.7 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $18.4 million, or 8.2%, from $223.4 million at December 31, 2023 to $205.0 million at December 31, 2024.

At December 31, 2024, the Company reported unrealized losses on the available-for-sale securities portfolio of $31.2 million, or 16.2% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $29.2 million, or 17.5% of the amortized cost basis of the available-for-sale securities at December 31, 2023. At December 31, 2024, the Company reported unrealized losses on the held-to-maturity securities portfolio of $39.4 million, or 19.2% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $35.7 million, or 16.0% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2023.

The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $4.6 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

Management regularly reviews the portfolio for securities in an unrealized loss position. At December 31, 2024 and December 31, 2023, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which support’s the Bank’s objective to provide liquidity.

Total Loans

Total loans increased $42.9 million, or 2.1%, from December 31, 2023, to $2.1 billion at December 31, 2024. The increase in total loans was due to an increase in residential real estate loans, including home equity loans, of $53.5 million, or 7.4%, partially offset by a decrease in commercial real estate loans of $4.0 million, or 0.4%, a decrease in commercial and industrial loans of $5.7 million, or 2.7% and a decrease in consumer loans of $1.1 million, or 19.8%. During the twelve months ended December 31, 2024, the Company sold $20.1 million in fixed rate residential loans to the secondary market with servicing retained.

The following table presents the summary of the loan portfolio by the major classification of the loan at the periods indicated:

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

Commercial real estate loans:
Non-owner occupied	$	880,828	$	881,643
Owner-occupied		194,904		198,108
Total commercial real estate loans		1,075,732		1,079,751

Residential real estate loans:
Residential		653,802		612,315
Home equity		121,857		109,839
Total residential real estate loans		775,659		722,154

Commercial and industrial loans		211,656		217,447

Consumer loans		4,391		5,472
Total gross loans		2,067,438		2,024,824
Unamortized premiums and net deferred loans fees and costs		2,751		2,493
Total loans	$	2,070,189	$	2,027,317

Credit Quality

Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

Total delinquency was $5.0 million, or 0.24% of total loans, at December 31, 2024, compared to $6.0 million, or 0.30% of total loans at December 31, 2023. At December 31, 2024, nonperforming loans totaled $5.4 million, or 0.26% of total loans, compared to $6.4 million, or 0.32% of total loans, at December 31, 2023. At December 31, 2024 and December 31, 2023, there were no loans 90 or more days past due and still accruing interest. Total nonperforming assets totaled $5.4 million, or 0.20% of total assets, at December 31, 2024, compared to $6.4 million, or 0.25% of total assets, at December 31, 2023. At December 31, 2024 and December 31, 2023, the Company did not have any other real estate owned. At December 31, 2024, the allowance for credit losses was $19.5 million, or 0.94% of total loans and 362.9% of nonperforming loans, compared to $20.3 million, or 1.00% of total loans and 315.6% of nonperforming loans, at December 31, 2023. Total classified loans, defined as special mention and substandard loans, decreased $1.1 million, or 2.8%, from $39.5 million, or 1.9% of total loans, at December 31, 2023 to $38.4 million, or 1.9% of total loans, at December 31, 2024. Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At December 31, 2024, the commercial real estate portfolio totaled $1.1 billion, and represented 52.0% of total loans. Of the $1.1 billion, $880.8 million, or 81.9%, was categorized as non-owner occupied commercial real estate and represented 325.2% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

Deposits

Total deposits increased $118.9 million, or 5.6%, from $2.1 billion at December 31, 2023 to $2.3 billion at December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $26.7 million, or 1.7%, from $1.5 billion, or 71.5% of total deposits, at December 31, 2023, to $1.6 billion, or 68.9% of total deposits, at December 31, 2024. Non-interest-bearing deposits decreased $14.0 million, or 2.4%, to $565.6 million, and represent 25.0% of total deposits, money market accounts increased $27.1 million, or 4.3%, to $661.5 million, savings accounts decreased $5.8 million, or 3.1%, to $181.6 million and interest-bearing checking accounts increased $19.3 million, or 14.7%, to $150.3 million.

Time deposits increased $92.2 million, or 15.1%, from $611.4 million at December 31, 2023 to $703.6 million at December 31, 2024. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024 and at December 31, 2023. The Company has experienced growth and movement in both money market accounts and time deposits as a result of relationship pricing, the current interest rate environment, and customer behaviors, as opposed to time deposit specials or interest rate adjustments. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term customer relationship base by competing for and retaining deposits in our local market. At December 31, 2024, the Bank’s uninsured deposits represented 28.4% of total deposits, compared to 26.8% at December 31, 2023.

The table below is a summary of our deposit balances for the periods noted:

	December 31, 2024		September 30, 2024		December 31, 2023
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	565,620	$	568,685	$	579,595
Interest-bearing accounts		150,348		140,332		131,031
Savings accounts		181,618		179,214		187,405
Money market accounts		661,478		635,824		634,361
Total Core Deposits	$	1,559,064	$	1,524,055	$	1,532,392
Time Deposits:		703,583		700,151		611,352
Total Deposits:	$	2,262,647	$	2,224,206	$	2,143,744

FHLB and Subordinated Debt

At December 31, 2024, total borrowings decreased $33.4 million, or 21.3%, from $156.5 million at December 31, 2023 to $123.1 million. At December 31, 2024, short-term borrowings decreased $10.7 million, or 66.5%, to $5.4 million, compared to $16.1 million at December 31, 2023. Long-term borrowings decreased $22.6 million, or 18.8%, from $120.6 million at December 31, 2023 to $98.0 million at December 31, 2024. At December 31, 2024 and December 31, 2023, borrowings also consisted of $19.8 million and $19.7 million, respectively, in fixed-to-floating rate subordinated notes.

The Company utilized the Bank Term Funding Program (“BTFP”), which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. The BTFP ceased extending new advances in March 2024. At December 31, 2023, the Company’s outstanding balance under the BTFP was $90.0 million. There was no outstanding balance under the BTFP at December 31, 2024.

As of December 31, 2024, the Company had $461.6 million of additional borrowing capacity at the Federal Home Loan Bank, $382.9 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At December 31, 2024, shareholders’ equity was $235.9 million, or 8.9% of total assets, compared to $237.4 million, or 9.3% of total assets, at December 31, 2023. The change was primarily attributable to an increase in accumulated other comprehensive loss of $1.5 million, cash dividends paid of $5.9 million, repurchase of shares at a cost of $7.8 million, partially offset by net income of $11.7 million. At December 31, 2024, total shares outstanding were 20,875,713. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets.

	December 31, 2024				December 31, 2023
	Company		Bank		Company		Bank
Total Capital (to Risk Weighted Assets)	14.38	%	13.65	%	14.67	%	13.94	%
Tier 1 Capital (to Risk Weighted Assets)	12.37	%	12.64	%	12.59	%	12.88	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)	12.37	%	12.64	%	12.59	%	12.88	%
Tier 1 Leverage Ratio (to Adjusted Average Assets)	9.14	%	9.34	%	9.40	%	9.62	%

Dividends

Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.

About Western New England Bancorp, Inc.

Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:

unpredictable changes in general economic or political conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
unstable political and economic conditions which could materially impact credit quality trends and the ability to generate loans and gather deposits;
inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
significant changes in accounting, tax or regulatory practices or requirements;
new legal obligations or liabilities or unfavorable resolutions of litigation;
disruptive technologies in payment systems and other services traditionally provided by banks;
the highly competitive industry and market area in which we operate;
operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
failure or circumvention of our internal controls or procedures;
changes in the securities markets which affect investment management revenues;
increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
the soundness of other financial services institutions which may adversely affect our credit risk;
certain of our intangible assets may become impaired in the future;
new lines of business or new products and services, which may subject us to additional risks;
changes in key management personnel which may adversely impact our operations;
severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
other risk factors detailed from time to time in our SEC filings.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Net Income and Other Data (Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended															Twelve Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
	2024			2024			2024			2024			2023			2024			2023
INTEREST AND DIVIDEND INCOME:
Loans	$	25,183		$	25,134		$	24,340		$	24,241		$	23,939		$	98,898		$	91,169
Securities		2,273			2,121			2,141			2,114			2,094			8,649			8,370
Other investments		214			189			148			136			140			687			558
Short-term investments		916			396			173			113			597			1,598			1,021
Total interest and dividend income		28,586			27,840			26,802			26,604			26,770			109,832			101,118

INTEREST EXPENSE:
Deposits		11,443			11,165			10,335			9,293			8,773			42,236			26,649
Short-term borrowings		60			71			186			283			123			600			1,589
Long-term debt		1,557			1,622			1,557			1,428			1,444			6,164			3,957
Subordinated debt		253			254			254			254			254			1,015			1,014
Total interest expense		13,313			13,112			12,332			11,258			10,594			50,015			33,209

Net interest and dividend income		15,273			14,728			14,470			15,346			16,176			59,817			67,909

(REVERSAL OF) PROVISION FOR CREDIT LOSSES		(762	)		941			(294	)		(550	)		486			(665	)		872

Net interest and dividend income after (reversal of) provision for credit losses		16,035			13,787			14,764			15,896			15,690			60,482			67,037

NON-INTEREST INCOME:
Service charges and fees on deposits		2,301			2,341			2,341			2,219			2,283			9,202			8,856
Income from bank-owned life insurance		486			470			502			453			432			1,911			1,820
Unrealized (loss) gain on marketable equity securities		(9	)		10			4			8			(1	)		13			(1	)
(Loss) gain on sale of mortgages		(11	)		246			–			–			–			235			–
Gain on non-marketable equity investments		300			–			987			–			–			1,287			590
Loss on disposal of premises and equipment		–			–			–			(6	)		–			(6	)		(3	)
Loss on defined benefit plan termination		–			–			–			–			–			–			(1,143	)
Gain on bank-owned life insurance death benefit		–			–			–			–			–			–			778
Other income		187			74			–			–			–			261			–
Total non-interest income		3,254			3,141			3,834			2,674			2,714			12,903			10,897

NON-INTEREST EXPENSE:
Salaries and employees benefits		8,429			8,112			7,901			8,244			7,739			32,686			32,214
Occupancy		1,256			1,217			1,218			1,363			1,198			5,054			4,908
Furniture and equipment		505			483			483			484			494			1,955			1,954
Data processing		900			869			846			862			788			3,477			3,157
Software		642			612			566			699			598			2,519			2,311
Debit/ATM card processing expense		593			649			643			552			559			2,437			2,139
Professional fees		471			540			581			569			674			2,161			2,732
FDIC insurance		389			338			323			410			338			1,460			1,321
Advertising		310			271			339			349			377			1,269			1,495
Other		1,431			1,315			1,414			1,250			2,020			5,410			6,119
Total non-interest expense		14,926			14,406			14,314			14,782			14,785			58,428			58,350

INCOME BEFORE INCOME TAXES		4,363			2,522			4,284			3,788			3,619			14,957			19,584

INCOME TAX PROVISION		1,075			618			771			827			1,108			3,291			4,516
NET INCOME	$	3,288		$	1,904		$	3,513		$	2,961		$	2,511		$	11,666		$	15,068

Basic earnings per share	$	0.16		$	0.09		$	0.17		$	0.14		$	0.12		$	0.56		$	0.70
Weighted average shares outstanding		20,561,749			20,804,162			21,056,173			21,180,968			21,253,452			20,899,573			21,535,888
Diluted earnings per share	$	0.16		$	0.09		$	0.17		$	0.14		$	0.12		$	0.56		$	0.70
Weighted average diluted shares outstanding		20,701,276			20,933,833			21,163,762			21,271,323			21,400,664			21,016,358			21,610,329

Other Data:
Return on average assets (1)		0.49	%		0.29	%		0.55	%		0.47	%		0.39	%		0.45	%		0.59	%
Return on average equity (1)		5.48	%		3.19	%		6.03	%		5.04	%		4.31	%		4.93	%		6.47	%
Efficiency ratio		80.56	%		80.62	%		78.20	%		82.03	%		78.27	%		80.35	%		74.04	%
Adjusted efficiency ratio (2)		81.85	%		80.67	%		82.68	%		82.04	%		78.26	%		81.80	%		74.25	%
Net interest margin		2.41	%		2.40	%		2.42	%		2.57	%		2.64	%		2.45	%		2.82	%
Net interest margin, on a fully tax-equivalent basis		2.43	%		2.42	%		2.44	%		2.59	%		2.66	%		2.47	%		2.84	%
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Cash and cash equivalents	$	66,450		$	72,802		$	53,458		$	22,613		$	28,840
Securities available-for-sale, at fair value		160,704			155,889			135,089			138,362			137,115
Securities held to maturity, at amortized cost		205,036			213,266			217,632			221,242			223,370
Marketable equity securities, at fair value		397			252			233			222			196
Federal Home Loan Bank of Boston and other restricted stock – at cost		5,818			7,143			7,143			3,105			3,707

Loans		2,070,189			2,049,002			2,026,226			2,025,566			2,027,317
Allowance for credit losses		(19,529	)		(19,955	)		(19,444	)		(19,884	)		(20,267	)
Net loans		2,050,660			2,029,047			2,006,782			2,005,682			2,007,050

Bank-owned life insurance		77,056			76,570			76,100			75,598			75,145
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,438			1,531			1,625			1,719			1,813
Other assets		73,044			71,492			75,521			76,206			74,848
TOTAL ASSETS	$	2,653,090		$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571

Total deposits	$	2,262,647		$	2,224,206		$	2,171,809		$	2,143,747		$	2,143,744
Short-term borrowings		5,390			4,390			6,570			11,470			16,100
Long-term debt		98,000			128,277			128,277			120,646			120,646
Subordinated debt		19,751			19,741			19,731			19,722			19,712
Securities pending settlement		8,622			2,513			102			–			–
Other liabilities		22,770			20,697			23,104			25,855			26,960
TOTAL LIABILITIES		2,417,180			2,399,824			2,349,593			2,321,440			2,327,162

TOTAL SHAREHOLDERS’ EQUITY		235,910			240,655			236,477			235,796			237,409
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,653,090		$	2,640,479		$	2,586,070		$	2,557,236		$	2,564,571

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended
	December 31,	September 30,	June 30,	March 31,	December 31,
	2024	2024	2024	2024	2023
Shares outstanding at end of period	20,875,713	21,113,408	21,357,849	21,627,690	21,666,807

Operating results:
Net interest income	$ 15,273	$ 14,728	$ 14,470	$ 15,346	$ 16,176
(Reversal of) provision for credit losses	(762)	941	(294)	(550)	486
Non-interest income	3,254	3,141	3,834	2,674	2,714
Non-interest expense	14,926	14,406	14,314	14,782	14,785
Income before income provision for income taxes	4,363	2,522	4,284	3,788	3,619
Income tax provision	1,075	618	771	827	1,108
Net income	3,288	1,904	3,513	2,961	2,511

Performance Ratios:
Net interest margin	2.41%	2.40%	2.42%	2.57%	2.64%
Net interest margin, on a fully tax-equivalent basis	2.43%	2.42%	2.44%	2.59%	2.66%
Interest rate spread	1.63%	1.60%	1.66%	1.85%	1.96%
Interest rate spread, on a fully tax-equivalent basis	1.65%	1.62%	1.67%	1.86%	1.98%
Return on average assets	0.49%	0.29%	0.55%	0.47%	0.39%
Return on average equity	5.48%	3.19%	6.03%	5.04%	4.31%
Efficiency ratio (GAAP)	80.56%	80.62%	78.20%	82.03%	78.27%
Adjusted efficiency ratio (non-GAAP) ⁽¹⁾	81.85%	80.67%	82.68%	82.04%	78.26%

Per Common Share Data:
Basic earnings per share	$ 0.16	$ 0.09	$ 0.17	$ 0.14	$ 0.12
Earnings per diluted share	0.16	0.09	0.17	0.14	0.12
Cash dividend declared	0.07	0.07	0.07	0.07	0.07
Book value per share	11.30	11.40	11.07	10.90	10.96
Tangible book value per share (non-GAAP) ⁽²⁾	10.63	10.73	10.41	10.25	10.30

Asset Quality:
30-89 day delinquent loans	$ 3,694	$ 3,059	$ 3,270	$ 3,000	$ 4,605
90 days or more delinquent loans	1,301	1,253	2,280	1,716	1,394
Total delinquent loans	4,995	4,312	5,550	4,716	5,999
Total delinquent loans as a percentage of total loans	0.24%	0.21%	0.27%	0.23%	0.30%
Nonperforming loans	$ 5,381	$ 4,873	$ 5,845	$ 5,837	$ 6,421
Nonperforming loans as a percentage of total loans	0.26%	0.24%	0.29%	0.29%	0.32%
Nonperforming assets as a percentage of total assets	0.20%	0.18%	0.23%	0.23%	0.25%
Allowance for credit losses as a percentage of nonperforming loans	362.93%	409.50%	332.66%	340.65%	315.64%
Allowance for credit losses as a percentage of total loans	0.94%	0.97%	0.96%	0.98%	1.00%
Net loan (recoveries) charge-offs	$ (128)	$ 98	$ 10	$ (67)	$ 136
Net loan (recoveries) charge-offs as a percentage of average loans	(0.01)%	0.00%	0.00%	0.00%	0.01%

____________________________

The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, loss on disposal of premises and equipment, loss on defined benefit plan termination and gain on bank-owned life insurance death benefit.
Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.

The following table sets forth the information relating to our average balances and net interest income for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended
	December 31, 2024								September 30, 2024							December 31, 2023
	Average						Average Yield/		Average					Average Yield/		Average					Average Yield/
	Balance		Interest				Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,062,822		$	25,311		4.88	%	$	2,038,593	$	25,253		4.93	%	$	2,017,089	$	24,052		4.73	%
Securities(2)		361,476			2,273		2.50			354,696		2,121		2.38			355,078		2,094		2.34
Other investments		15,924			214		5.35			15,904		189		4.73			12,119		140		4.58
Short-term investments(3)		76,795			916		4.75			32,043		396		4.92			42,826		597		5.53
Total interest-earning assets		2,517,017			28,714		4.54			2,441,236		27,959		4.56			2,427,112		26,883		4.39
Total non-interest-earning assets		155,538								153,585							158,435
Total assets	$	2,672,555							$	2,594,821						$	2,585,547

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	149,231			264		0.70		$	131,133		271		0.82		$	139,894		260		0.74
Savings accounts		179,122			38		0.08			179,844		38		0.08			187,047		39		0.08
Money market accounts		654,965			3,553		2.16			621,340		3,172		2.03			657,407		2,716		1.64
Time deposit accounts		700,324			7,588		4.31			688,797		7,684		4.44			603,860		5,758		3.78
Total interest-bearing deposits		1,683,642			11,443		2.70			1,621,114		11,165		2.74			1,588,208		8,773		2.19
Borrowings		147,748			1,870		5.04			153,317		1,947		5.05			149,585		1,821		4.83
Interest-bearing liabilities		1,831,390			13,313		2.89			1,774,431		13,112		2.94			1,737,793		10,594		2.42
Non-interest-bearing deposits		579,168								559,224							588,748
Other non-interest-bearing liabilities		23,380								23,466							27,847
Total non-interest-bearing liabilities		602,548								582,690							616,595
Total liabilities		2,433,938								2,357,121							2,354,388
Total equity		238,617								237,700							231,159
Total liabilities and equity	$	2,672,555							$	2,594,821						$	2,585,547
Less: Tax-equivalent adjustment(2)					(128	)						(119	)						(113	)
Net interest and dividend income				$	15,273						$	14,728						$	16,176
Net interest rate spread(4)							1.63	%						1.60	%						1.96	%
Net interest rate spread, on a tax-equivalent basis(5)							1.65	%						1.62	%						1.98	%
Net interest margin(6)							2.41	%						2.40	%						2.64	%
Net interest margin, on a tax-equivalent basis(7)							2.43	%						2.42	%						2.66	%
Ratio of average interest-earning assets to average interest-bearing liabilities							137.44	%						137.58	%						139.67	%

The following tables set forth the information relating to our average balances and net interest income for the twelve months ended December 31, 2024 and 2023 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Twelve Months Ended December 31,
	2024							2023
	Average Balance		Interest			Average Yield/ Cost		Average Balance		Interest			Average Yield/ Cost
	Average Balance		Interest			Average Yield/ Cost		Average Balance		Interest			Average Yield/ Cost
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,035,149	$	99,369		4.88	%	$	2,006,166	$	91,640		4.57	%
Securities(2)		357,631		8,649		2.42			368,201		8,371		2.27
Other investments		14,669		687		4.68			12,425		558		4.49
Short-term investments(3)		33,254		1,598		4.81			20,459		1,021		4.99
Total interest-earning assets		2,440,703		110,303		4.52			2,407,251		101,590		4.22
Total non-interest-earning assets		155,056							155,511
Total assets	$	2,595,759						$	2,562,762

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	136,861		1,022		0.75	%	$	142,005		1,041		0.73	%
Savings accounts		182,678		166		0.09			202,354		181		0.09
Money market accounts		631,197		12,242		1.94			697,621		9,529		1.37
Time deposit accounts		666,917		28,806		4.32			524,827		15,898		3.03
Total interest-bearing deposits		1,617,653		42,236		2.61			1,566,807		26,649		1.70
Short-term borrowings and long-term debt		155,560		7,779		5.00			135,532		6,560		4.84
Total interest-bearing liabilities		1,773,213		50,015		2.82			1,702,339		33,209		1.95
Non-interest-bearing deposits		561,264							602,652
Other non-interest-bearing liabilities		24,541							24,885
Total non-interest-bearing liabilities		585,805							627,537

Total liabilities		2,359,018							2,329,876
Total equity		236,741							232,886
Total liabilities and equity	$	2,595,759						$	2,562,762
Less: Tax-equivalent adjustment (2)				(471	)						(472	)
Net interest and dividend income			$	59,817						$	67,909
Net interest rate spread (4)						1.68	%						2.25	%
Net interest rate spread, on a tax-equivalent basis (5)						1.70	%						2.27	%
Net interest margin (6)						2.45	%						2.82	%
Net interest margin, on a tax-equivalent basis (7)						2.47	%						2.84	%
Ratio of average interest-earning assets to average interest-bearing liabilities						137.64	%						141.41	%

(1)	Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2)	Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
(3)	Short-term investments include federal funds sold.
(4)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)	Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6)	Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7)	Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8)	Annualized.

Reconciliation of Non-GAAP to GAAP Financial Measures

The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.

	For the quarter ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
	(Dollars in thousands)

Loan interest (no tax adjustment)	$	25,183		$	25,134		$	24,340		$	24,241		$	23,939
Tax-equivalent adjustment		128			119			114			110			113
Loan interest (tax-equivalent basis)	$	25,311		$	25,253		$	24,454		$	24,351		$	24,052

Net interest income (no tax adjustment)	$	15,273		$	14,728		$	14,470		$	15,346		$	16,176
Tax equivalent adjustment		128			119			114			110			113
Net interest income (tax-equivalent basis)	$	15,401		$	14,847		$	14,584		$	15,456		$	16,289

Net interest income (no tax adjustment)	$	15,273		$	14,728		$	14,470		$	15,346		$	16,176
Less:
Fair value hedge interest income		74			434			447			443			459
Adjusted net interest income (non-GAAP)	$	15,199		$	14,294		$	14,023		$	14,903		$	15,717

Average interest-earning assets	$	2,517,017		$	2,441,236		$	2,400,633		$	2,403,086		$	2,427,112
Net interest margin (no tax adjustment)		2.41	%		2.40	%		2.42	%		2.57	%		2.64	%
Net interest margin, tax-equivalent		2.43	%		2.42	%		2.44	%		2.59	%		2.66	%
Adjusted net interest margin, excluding fair value hedge interest income (non-GAAP)		2.40	%		2.33	%		2.35	%		2.50	%		2.57	%

Book Value per Share (GAAP)	$	11.30		$	11.40		$	11.07		$	10.90		$	10.96
Non-GAAP adjustments:
Goodwill		(0.60	)		(0.59	)		(0.58	)		(0.58	)		(0.58	)
Core deposit intangible		(0.07	)		(0.08	)		(0.08	)		(0.07	)		(0.08	)
Tangible Book Value per Share (non-GAAP)	$	10.63		$	10.73		$	10.41		$	10.25		$	10.30

	For the quarter ended
	12/31/2024			9/30/2024			6/30/2024			3/31/2024			12/31/2023
	(Dollars in thousands)

Efficiency Ratio:
Non-interest Expense (GAAP)	$	14,926		$	14,406		$	14,314		$	14,782		$	14,785

Net Interest Income (GAAP)	$	15,273		$	14,728		$	14,470		$	15,346		$	16,176

Non-interest Income (GAAP)	$	3,254		$	3,141		$	3,834		$	2,674		$	2,714
Non-GAAP adjustments:
Unrealized losses (gains) on marketable equity securities		9			(10	)		(4	)		(8	)		1
Gain on non-marketable equity investments		(300	)		–			(987	)		–			–
Loss on disposal of premises and equipment		–			–			–			6			–
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	2,963		$	3,131		$	2,843		$	2,672		$	2,715
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	18,236		$	17,859		$	17,313		$	18,018		$	18,891

Efficiency Ratio (GAAP)		80.56	%		80.62	%		78.20	%		82.03	%		78.27	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		81.85	%		80.67	%		82.68	%		82.04	%		78.26	%

	For the twelve months ended
	12/31/2024	12/31/2023
	(Dollars in thousands)

Loan income (no tax adjustment)	$ 98,898	$ 91,169
Tax-equivalent adjustment	471	472
Loan income (tax-equivalent basis)	$ 99,369	$ 91,641

Net interest income (no tax adjustment)	$ 59,817	$ 67,909
Tax equivalent adjustment	471	472
Net interest income (tax-equivalent basis)	$ 60,288	$ 68,381

Net interest income (no tax adjustment)	$ 59,817	$ 67,909
Less:
Fair value hedge interest income	1,398	1,085
Adjusted net interest income (non-GAAP)	$ 58,419	$ 66,824

Average interest-earning assets	$ 2,440,703	$ 2,407,251
Net interest margin (no tax adjustment)	2.45%	2.82%
Net interest margin, tax-equivalent	2.47%	2.84%
Adjusted net interest margin, excluding fair value hedge interest income (non-GAAP)	2.39%	2.77%

Adjusted Efficiency Ratio:
Non-interest Expense (GAAP)	$ 58,428	$ 58,350

Net Interest Income (GAAP)	$ 59,817	$ 67,909

Non-interest Income (GAAP)	$ 12,903	$ 10,897
Non-GAAP adjustments:
Unrealized gains on marketable equity securities	(13)	1
Loss on disposal of premises and equipment, net	6	3
Gain on bank-owned life insurance	–	(778)
Gain on non-marketable equity investments	(1,287)	(590)
Loss on defined benefit plan curtailment	–	1,143
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$ 11,609	$ 10,676
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$ 71,426	$ 78,585

Efficiency Ratio (GAAP)	80.35%	74.04%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))	81.80%	74.25%

For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911

The MIL Network –

January 29, 2025

MIL-OSI: EverQuote to Announce Fourth Quarter and Full Year 2024 Financial Results on February 24, 2025

Source: GlobeNewswire (MIL-OSI)

CAMBRIDGE, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — EverQuote, Inc. (Nasdaq: EVER), a leading online insurance marketplace, today announced that it will report fourth quarter and full year 2024 financial results after the market close on Monday, February 24, 2025. Management will host a conference call and webcast to discuss the Company’s financial results, recent developments, and business outlook at 4:30 p.m. ET.

What:	EverQuote Fourth Quarter and Full Year 2024 Financial Results Conference Call

When:	Monday, February 24, 2025

Time:	4:30 p.m. ET

Live Call:	US Toll Free: (800) 715-9871 All Other: +1 (646) 307-1963 Conference ID: 4210704

Live Webcast and Replay:	http://investors.everquote.com/

About EverQuote

EverQuote operates a leading online marketplace for insurance shopping, connecting consumers with our insurance provider customers, which includes both carriers and agents. Our vision is to be the leading growth partner for P&C insurance providers. Our results-driven marketplace, powered by our proprietary data and technology platform, is improving the way insurance providers attract and connect with consumers shopping for insurance.

For more information, visit https://investors.everquote.com and follow on LinkedIn.

Investor Relations Contact:

Brinlea Johnson
The Blueshirt Group
415-489-2193
brinlea@blueshirtgroup.com

The MIL Network –

January 29, 2025

MIL-OSI: Enterprise Bancorp, Inc. Announces Fourth Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

Filed by Enterprise Bancorp, Inc.
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934

Subject Company: Enterprise Bancorp, Inc.
SEC File No.: 001-33912
Date: January 28, 2025

LOWELL, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. (“Enterprise”) (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended December 31, 2024. Net income amounted to $10.7 million, or $0.86 per diluted common share, for the three months ended December 31, 2024, compared to $10.0 million, or $0.80 per diluted common share, for the three months ended September 30, 2024 and $7.9 million, or $0.64 per diluted common share, for the three months ended December 31, 2023.

On December 9, 2024, Enterprise and Enterprise Bank announced the signing of a definitive merger agreement with Independent Bank Corp. (“Independent”) and its wholly owned subsidiary, Rockland Trust Company (“Rockland Trust”), pursuant to which Enterprise will merge with and into Independent and Enterprise Bank will merge into Rockland Trust. The proposed merger is expected to close in the second half of 2025, subject to customary closing conditions, including regulatory approvals and approval of Enterprise shareholders. No vote of Independent Bank Corp. shareholders is required.

Selected financial results at or for the quarter ended December 31, 2024, compared to September 30, 2024, were as follows:

The returns on average assets and average equity were 0.89% and 11.82%, respectively.
Tax-equivalent net interest margin (non-GAAP) (“net interest margin”) was 3.29%, an increase of 7 basis points.
Total loans amounted to $3.98 billion, an increase of 3.2%.
Total deposits were relatively unchanged and amounted to $4.19 billion.
Wealth assets under management and administration amounted to $1.54 billion, an increase of 1.4%.

Chief Executive Officer Steven Larochelle commented, “As we continue to work toward the upcoming completion of the proposed merger with Rockland Trust, I am pleased to announce that our team continued to deliver strong results in the fourth quarter. Loan growth was once again robust at 3.2% for the quarter while operating results were positively impacted by margin expansion as we benefited from the impact of Federal Reserve Bank interest rate cuts coupled with the flattening of the yield curve.”

Executive Chairman & Founder George Duncan stated, “The news of our anticipated merger with Rockland Trust has been well received by our shareholders, customers and communities. The planning of our integration with them is going well and the anticipated synergies and cultural alignment of our two banks are being confirmed.”

Mr. Duncan added, “I congratulate Steve, and the whole team, for another very successful quarter and year. This was our third straight year of 12% loan growth, and I believe this is a testament to our relationship-based sales and service culture partnered with our strong commitment to community outreach and involvement.”

Net Interest Income

Net interest income for the three months ended December 31, 2024, amounted to $38.5 million, an increase of $2.0 million, or 5%, compared to the three months ended December 31, 2023. The increase was due primarily to an increase in loan interest income of $7.8 million, partially offset by an increase in deposit interest expense of $3.7 million and a decrease in income on other interest-earning assets of $1.5 million.

The increase in interest income during the fourth quarter of 2024, compared to the prior year quarter, was due primarily to loan growth and higher loan yields, while the increase in interest expense during the period was attributed primarily to an increase in certificates of deposit balances and higher market rates on deposits.

Net Interest Margin

Net interest margin for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, amounted to 3.29%, 3.22% and 3.29%, respectively.

Three months ended – December 31, 2024, compared to December 31, 2023

Net interest margin was positively impacted by loan growth and an increase in loan yields, offset by increases in average funding liabilities and funding costs as well as a decrease in the average balance of other interest-earning assets.

The increase in interest-earning asset yields of 27 basis points was due primarily to loan repricing and originations at higher interest rates while the increase in funding costs of 29 basis points was driven by higher market rates and growth in certificate of deposit balances.

Three months ended – December 31, 2024, compared to September 30, 2024

The increase in net interest margin was due primarily to loan growth and a decrease in funding costs, partially offset by decreases in interest-earning asset yields and the average balance of other interest-earning assets.

The decreases in funding costs of 10 basis points and interest-earning asset yields of 3 basis points were driven primarily by the 100 basis point reduction in the federal funds rate from September 2024 through December 2024. In addition, the decrease in other interest-earning assets resulted mainly from funding loan growth during the period.

Provision for Credit Losses

The provision for credit losses for the three-month periods ended December 31, 2024 and December 31, 2023, are presented below:

	Three months ended						Increase / (Decrease)
(Dollars in thousands)	December 31, 2024			December 31, 2023			Increase / (Decrease)
Provision for credit losses on loans – collectively evaluated	$	1,939		$	1,132		$	807
Provision for credit losses on loans – individually evaluated		(1,874	)		(27	)		(1,847	)
Provision for credit losses on loans		65			1,105			(1,040	)

Provision for unfunded commitments		(171	)		1,388			(1,559	)

Provision for credit losses	$	(106	)	$	2,493		$	(2,599	)

The decrease in the provision for credit losses of $2.6 million was due to net decreases in reserves on individually evaluated loans of $1.8 million and unfunded commitments of $1.6 million, partially offset by an increase in reserves on collectively evaluated loans of $807 thousand which was due primarily to loan growth.

The decrease in reserves on individually evaluated loans was due primarily to two commercial relationships that experienced improvement in their collateral valuation during the period and the decrease in reserves for unfunded commitments resulted primarily by a decrease in off-balance sheet commitments that required a reserve.

Non-Interest Income

Non-interest income for the three months ended December 31, 2024, amounted to $5.6 million, an increase of $69 thousand, or 1%, compared to the three months ended December 31, 2023. The increase was due primarily to increases in wealth management fees, income on bank-owned life insurance and other income, partially offset by a decrease in gains on equity securities.

Non-Interest Expense

Non-interest expense for the three months ended December 31, 2024, amounted to $29.8 million, an increase of $1.6 million, or 6%, compared to the three months ended December 31, 2023. The increase was due primarily to increases in salaries and employee benefits expense of $808 thousand and merger-related expenses of $1.1 million.

Income Taxes

The effective tax rate for the three months ended December 31, 2024, amounted to 25.4%, compared to 30.3% for the three months ended December 31, 2023. The decrease was due primarily to annual book to tax return adjustments in the prior year quarter.

Balance Sheet

Total assets amounted to $4.83 billion at December 31, 2024, compared to $4.47 billion at December 31, 2023, an increase of 8%.

Total investment securities at fair value amounted to $593.6 million at December 31, 2024, compared to $668.2 million at December 31, 2023. The decrease of 11% during the year ended December 31, 2024, was largely attributable to principal pay-downs, calls and maturities. In addition, unrealized losses on debt securities amounted to $101.8 million at December 31, 2024, compared to $102.9 million at December 31, 2023, a decrease of 1%.

Total loans amounted to $3.98 billion at December 31, 2024, compared to $3.57 billion at December 31, 2023. The increase of 12% during the year ended December 31, 2024, was due primarily to increases in commercial real estate and construction loans of $203.1 million and $94.9 million, respectively.

Total deposits amounted to $4.19 billion at December 31, 2024, compared to $3.98 billion at December 31, 2023. The increase of 5% during the year ended December 31, 2024, was due primarily to increases in money market and certificate of deposit balances of $51.5 million and $164.1 million, respectively.

Total borrowed funds amounted to $153.1 million at December 31, 2024, compared to $25.8 million at December 31, 2023. The increase of $127.4 million during the year ended December 31, 2024, the majority of which occurred at the end of December, resulted primarily from an increase in short-term advances used to support strong loan growth. Average borrowed funds during the fourth quarter of 2024 amounted to $37.8 million.

Total shareholders’ equity amounted to $360.7 million at December 31, 2024, compared to $329.1 million at December 31, 2023. The increase of 10% during the year ended December 31, 2024, was due primarily to an increase in retained earnings of $26.9 million.

Credit Quality

Selected credit quality metrics at December 31, 2024, compared to December 31, 2023, were as follows:

The allowance for credit losses (“ACL”) for loans amounted to $63.5 million, or 1.59% of total loans, compared to $59.0 million, or 1.65% of total loans. The decrease in the ACL for loans to total loan ratio was due primarily to a decrease in reserves on individually evaluated loans and a decrease in qualitative factors within our ACL model.
The reserve for unfunded commitments (included in other liabilities) amounted to $4.4 million, compared to $7.1 million. The decrease was driven primarily by a decrease in off-balance sheet commitments that required a reserve.
Non-performing loans amounted to $26.7 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase resulted primarily from two individually evaluated commercial construction loans which were placed on non-accrual.

Net charge-offs for the year ended December 31, 2024, amounted to $206 thousand, or 0.01% of average total loans, compared to $105 thousand, or 0.00% of average total loans, for the year ended December 31, 2023.

Wealth Management

Wealth assets under management and administration, which are not carried as assets on the Company’s consolidated balance sheets, amounted to $1.54 billion at December 31, 2024, an increase of $215.8 million, or 16%, compared to December 31, 2023, and resulted primarily from an increase in market values.

About Enterprise Bancorp, Inc.

Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 141 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company’s headquarters and Enterprise Bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.

Forward-Looking Statements

This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “upcoming,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, (i) disruption from the proposed merger with Independent; (ii) the risk that the proposed merger with Independent may not be completed in a timely manner or at all; (iii) the occurrence of any event, change, or other circumstances that could give rise to the termination of the proposed merger with Independent, including under circumstances that would require Enterprise to pay a termination fee; (iv) the failure to obtain necessary shareholder or regulatory approvals for the proposed merger with Independent; (v) the ability to successfully integrate the combined business; (vi) the possibility that the amount of the costs, fees, expenses, and charges related to the proposed merger with Independent may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities; (vii) the failure of the conditions to the proposed merger with Independent to be satisfied; (viii) reputational risk and the reaction of the parties’ customers to the proposed merger with Independent; (xi) the risk of potential litigation or regulatory action related to the proposed merger with Independent; (x) the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; (xi) potential recession in the United States and our market areas; (xii) the impacts related to or resulting from uncertainty in the banking industry as a whole; (xiii) increased competition for deposits and related changes in deposit customer behavior; (xiv) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (xv) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (xvi) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (xvii) increases in unemployment rates in the United States and our market areas; (xviii) declines in commercial real estate values and prices; (xix) uncertainty regarding United States fiscal debt, deficit and budget matters; (xx) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xxi) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; (xxii) competition and market expansion opportunities; (xxiii) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xxiv) changes in tax laws; (xxv) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xxvi) potential increased costs related to the impacts of climate change; and (xxvii) current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

ENTERPRISE BANCORP, INC.
Consolidated Balance Sheets
(unaudited)

(Dollars in thousands, except per share data)	December 31, 2024			December 31, 2023
Assets
Cash and cash equivalents:
Cash and due from banks	$	42,689		$	37,443
Interest-earning deposits with banks		41,152			19,149
Total cash and cash equivalents		83,841			56,592
Investments:
Debt securities at fair value (amortized cost of $685,766 and $763,981, respectively)		583,930			661,113
Equity securities at fair value		9,665			7,058
Total investment securities at fair value		593,595			668,171
Federal Home Loan Bank stock		7,093			2,402
Loans held for sale		520			200
Loans:
Total loans		3,982,898			3,567,631
Allowance for credit losses		(63,498	)		(58,995	)
Net loans		3,919,400			3,508,636
Premises and equipment, net		42,444			44,931
Lease right-of-use asset		24,126			24,820
Accrued interest receivable		20,553			19,233
Deferred income taxes, net		49,096			49,166
Bank-owned life insurance		67,421			65,455
Prepaid income taxes		2,583			1,589
Prepaid expenses and other assets		11,398			19,183
Goodwill		5,656			5,656
Total assets	$	4,827,726		$	4,466,034
Liabilities and Shareholders‘Equity
Liabilities
Deposits	$	4,187,698		$	3,977,521
Borrowed funds		153,136			25,768
Subordinated debt		59,815			59,498
Lease liability		23,849			24,441
Accrued expenses and other liabilities		33,425			45,011
Accrued interest payable		9,055			4,678
Total liabilities		4,466,978			4,136,917
Commitments and Contingencies
Shareholders‘Equity
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued		—			—
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,447,308 and 12,272,674 shares issued and outstanding, respectively.		124			123
Additional paid-in capital		111,295			107,377
Retained earnings		328,243			301,380
Accumulated other comprehensive loss		(78,914	)		(79,763	)
Total shareholders’ equity		360,748			329,117
Total liabilities and shareholders’ equity	$	4,827,726		$	4,466,034

ENTERPRISE BANCORP, INC.
Consolidated Statements of Income
(unaudited)

	Three months ended								Year ended
(Dollars in thousands, except per share data)	December 31, 2024			September 30, 2024			December 31, 2023		December 31, 2024			December 31, 2023
Interest and dividend income:
Other interest-earning assets	$	833		$	2,497		$	2,350	$	6,199		$	9,943
Investment securities		3,881			3,835			4,219		15,693			18,575
Loans and loans held for sale		54,528			53,809			46,680		208,378			172,535
Total interest and dividend income		59,242			60,141			53,249		230,270			201,053
Interest expense:
Deposits		19,488			20,581			15,821		76,513			44,389
Borrowed funds		394			674			43		2,426			113
Subordinated debt		867			866			867		3,467			3,467
Total interest expense		20,749			22,121			16,731		82,406			47,969
Net interest income		38,493			38,020			36,518		147,864			153,084
Provision for credit losses		(106	)		1,332			2,493		1,985			9,249
Net interest income after provision for credit losses		38,599			36,688			34,025		145,879			143,835
Non-interest income:
Wealth management fees		2,043			2,025			1,797		7,888			6,730
Deposit and interchange fees		2,240			2,282			2,145		8,875			8,475
Income on bank-owned life insurance, net		522			518			314		2,001			1,264
Net losses on sales of debt securities		—			(2	)		—		(2	)		(2,419	)
Net gains on sales of loans		33			57			—		156			34
Net (losses) gains on equity securities		(30	)		604			674		1,140			666
Other income		808			656			617		2,821			2,859
Total non-interest income		5,616			6,140			5,547		22,879			17,609
Non-interest expense:
Salaries and employee benefits		19,276			20,097			18,468		78,224			72,283
Occupancy and equipment expenses		2,364			2,438			2,283		9,667			9,722
Technology and telecommunications expenses		2,687			2,618			2,719		10,708			10,656
Advertising and public relations expenses		609			559			709		2,585			2,786
Audit, legal and other professional fees		460			569			788		2,474			2,945
Deposit insurance premiums		950			900			768		3,571			2,712
Supplies and postage expenses		242			261			245		980			998
Merger-related expenses		1,137			—			—		1,137			—
Other operating expenses		2,117			1,911			2,244		7,786			8,097
Total non-interest expense		29,842			29,353			28,224		117,132			110,199
Income before income taxes		14,373			13,475			11,348		51,626			51,245
Provision for income taxes		3,646			3,488			3,441		12,893			13,187
Net income	$	10,727		$	9,987		$	7,907	$	38,733		$	38,058

Basic earnings per common share	$	0.86		$	0.80		$	0.64	$	3.13		$	3.11
Diluted earnings per common share	$	0.86		$	0.80		$	0.64	$	3.12		$	3.11

Basic weighted average common shares outstanding		12,433,895			12,428,543			12,261,918		12,386,669			12,223,626
Diluted weighted average common shares outstanding		12,460,063			12,438,160			12,276,769		12,398,062			12,244,036

ENTERPRISE BANCORP, INC.
Selected Consolidated Financial Data and Ratios
(unaudited)

	At or for the 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
Balance Sheet Data
Total cash and cash equivalents	$	83,841		$	88,632		$	199,719		$	147,834		$	56,592
Total investment securities at fair value		593,595			631,975			636,838			652,026			668,171
Total loans		3,982,898			3,858,940			3,768,649			3,654,322			3,567,631
Allowance for credit losses		(63,498	)		(63,654	)		(61,999	)		(60,741	)		(58,995	)
Total assets		4,827,726			4,742,809			4,773,681			4,624,015			4,466,034
Total deposits		4,187,698			4,189,461			4,248,801			4,106,119			3,977,521
Borrowed funds		153,136			59,949			61,785			63,246			25,768
Subordinated debt		59,815			59,736			59,657			59,577			59,498
Total shareholders’ equity		360,748			368,109			340,441			333,439			329,117
Total liabilities and shareholders’ equity		4,827,726			4,742,809			4,773,681			4,624,015			4,466,034

Wealth Management
Wealth assets under management	$	1,230,014		$	1,212,076		$	1,129,147		$	1,105,036		$	1,077,761
Wealth assets under administration	$	305,930		$	302,891		$	267,529		$	268,074		$	242,338

Shareholders’ Equity Ratios
Book value per common share	$	28.98		$	29.62		$	27.40		$	26.94		$	26.82
Dividends paid per common share	$	0.24		$	0.24		$	0.24		$	0.24		$	0.23

Regulatory Capital Ratios
Total capital to risk weighted assets		13.06	%		13.07	%		13.07	%		13.20	%		13.12	%
Tier 1 capital to risk weighted assets⁽¹⁾		10.38	%		10.36	%		10.34	%		10.43	%		10.34	%
Tier 1 capital to average assets		8.94	%		8.68	%		8.76	%		8.85	%		8.74	%

Credit Quality Data
Non-performing loans	$	26,687		$	25,946		$	17,731		$	18,527		$	11,414
Non-performing loans to total loans		0.67	%		0.67	%		0.47	%		0.51	%		0.32	%
Non-performing assets to total assets		0.55	%		0.55	%		0.37	%		0.40	%		0.26	%
ACL for loans to total loans		1.59	%		1.65	%		1.65	%		1.66	%		1.65	%
Net charge-offs (recoveries)	$	221		$	(7	)	$	(130	)	$	122		$	15

Income Statement Data
Net interest income	$	38,493		$	38,020		$	36,161		$	35,190		$	36,518
Provision for credit losses		(106	)		1,332			137			622			2,493
Total non-interest income		5,616			6,140			5,628			5,495			5,547
Total non-interest expense		29,842			29,353			29,029			28,908			28,224
Income before income taxes		14,373			13,475			12,623			11,155			11,348
Provision for income taxes		3,646			3,488			3,111			2,648			3,441
Net income	$	10,727		$	9,987		$	9,512		$	8,507		$	7,907

Income Statement Ratios
Diluted earnings per common share	$	0.86		$	0.80		$	0.77		$	0.69		$	0.64
Return on average total assets		0.89	%		0.82	%		0.82	%		0.75	%		0.69	%
Return on average shareholders’ equity		11.82	%		11.20	%		11.55	%		10.47	%		10.21	%
Net interest margin (tax-equivalent)⁽²⁾		3.29	%		3.22	%		3.19	%		3.20	%		3.29	%

(1) Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.
(2) Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.

ENTERPRISE BANCORP, INC.
Consolidated Loan and Deposit Data
(unaudited)

Major classifications of loans at the dates indicated were as follows:

(Dollars in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Commercial real estate owner-occupied	$	704,634		$	660,063		$	660,478		$	635,420		$	619,302
Commercial real estate non owner-occupied		1,563,201			1,579,827			1,544,386			1,524,174			1,445,435
Commercial and industrial		479,821			415,642			426,976			417,604			430,749
Commercial construction		679,969			674,434			622,094			583,711			585,113
Total commercial loans		3,427,625			3,329,966			3,253,934			3,160,909			3,080,599

Residential mortgages		443,096			424,030			413,323			400,093			393,142
Home equity loans and lines		103,858			95,982			93,220			85,144			85,375
Consumer		8,319			8,962			8,172			8,176			8,515
Total retail loans		555,273			528,974			514,715			493,413			487,032
Total loans		3,982,898			3,858,940			3,768,649			3,654,322			3,567,631

ACL for loans		(63,498	)		(63,654	)		(61,999	)		(60,741	)		(58,995	)
Net loans	$	3,919,400		$	3,795,286		$	3,706,650		$	3,593,581		$	3,508,636

Deposits are summarized at the periods indicated were as follows:

(Dollars in thousands)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Non-interest checking	$	1,077,998	$	1,064,424	$	1,041,771	$	1,038,887	$	1,061,009
Interest-bearing checking		699,671		682,050		788,822		730,819		697,632
Savings		270,367		279,824		294,566		285,090		294,865
Money market		1,454,443		1,488,437		1,504,551		1,469,181		1,402,939
CDs $250,000 or less		377,958		375,055		358,149		337,367		295,789
CDs greater than $250,000		307,261		299,671		260,942		244,775		225,287
Deposits	$	4,187,698	$	4,189,461	$	4,248,801	$	4,106,119	$	3,977,521

ENTERPRISE BANCORP, INC.
Consolidated Average Balance Sheets and Yields (tax-equivalent basis)
(unaudited)

The following table presents the Company’s average balance sheets, net interest income and average rates for the periods indicated:

	Three months ended December 31, 2024						Three months ended September 30, 2024						Three months ended December 31, 2023
(Dollars in thousands)	Average Balance		Interest⁽¹⁾		Average Yield⁽¹⁾		Average Balance		Interest⁽¹⁾		Average Yield⁽¹⁾		Average Balance		Interest⁽¹⁾		Average Yield⁽¹⁾
Assets:
Other interest-earning assets⁽²⁾	$	68,224	$	833	4.85	%	$	181,465	$	2,497	5.48	%	$	172,167	$	2,350	5.42	%
Investment securities⁽³⁾(tax-equivalent)		704,629		3,985	2.26	%		731,815		3,945	2.16	%		799,093		4,345	2.17	%
Loans and loans held for sale⁽⁴⁾(tax-equivalent)		3,911,386		54,673	5.56	%		3,813,800		53,956	5.63	%		3,467,945		46,824	5.36	%
Total interest-earnings assets (tax-equivalent)		4,684,239		59,491	5.06	%		4,727,080		60,398	5.09	%		4,439,205		53,519	4.79	%
Other assets		101,952						104,284						78,102
Total assets	$	4,786,191					$	4,831,364					$	4,517,307

Liabilities and stockholders’ equity:
Non-interest checking	$	1,106,823		—			$	1,069,130		—			$	1,145,254	$	—
Interest checking, savings and money market		2,471,854		11,728	1.89	%		2,574,439		13,017	2.01	%		2,437,142		10,786	1.76	%
CDs		683,248		7,760	4.52	%		651,614		7,564	4.62	%		500,286		5,035	3.99	%
Total deposits		4,261,925		19,488	1.82	%		4,295,183		20,581	1.91	%		4,082,682		15,821	1.54	%
Borrowed funds		37,812		394	4.15	%		61,232		674	4.38	%		7,572		43	2.24	%
Subordinated debt⁽⁵⁾		59,768		867	5.80	%		59,689		866	5.81	%		59,451		867	5.83	%
Total funding liabilities		4,359,505		20,749	1.89	%		4,416,104		22,121	1.99	%		4,149,705		16,731	1.60	%
Other liabilities		65,720						60,524						60,376
Total liabilities		4,425,225						4,476,628						4,210,081
Stockholders’ equity		360,966						354,736						307,226
Total liabilities and stockholders’ equity	$	4,786,191					$	4,831,364					$	4,517,307

Net interest-rate spread (tax-equivalent)					3.17	%					3.10	%					3.19	%
Net interest income (tax-equivalent)				38,742						38,277						36,788
Net interest margin (tax-equivalent)					3.29	%					3.22	%					3.29	%
Less tax-equivalent adjustment				249						257						270
Net interest income			$	38,493					$	38,020					$	36,518
Net interest margin					3.27	%					3.20	%					3.27	%

(1) Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
(2) Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and Federal Home Loan Bank stock.
(3) Average investment securities are presented at average amortized cost.
(4) Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans.
(5) Subordinated debt is net of average deferred debt issuance costs.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This communication may contain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectations and intentions of Independent and Enterprise, the expected timing of completion of the proposed transaction, and other statements that are not historical facts. Such statements reflect the current views of Independent Bank Corp. (“Independent”) and Enterprise Bancorp, Inc. (“Enterprise”) with respect to future events and financial performance, and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs, expectations, plans, predictions, forecasts, objectives, assumptions or future events or performance, are forward-looking statements. Forward-looking statements often, but not always, may be identified by words such as expect, anticipate, believe, intend, potential, estimate, plan, target, goal, or similar words or expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.

Independent and Enterprise caution that the forward-looking statements in this communication are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond Independent’s and Enterprise’s control. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: (1) changes in general economic, political, or industry conditions; (2) uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; (3) volatility and disruptions in global capital and credit markets; (4) movements in interest rates; (5) the resurgence of elevated levels of inflation or inflationary pressures in the United States and the Enterprise and Independent market areas; (6) increased competition in the markets of Independent and Enterprise; (7) success, impact, and timing of business strategies of Independent and Enterprise; (8) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations; (9) the expected impact of the proposed transaction between Enterprise and Independent on the combined entities’ operations, financial condition, and financial results; (10) the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); (11) the failure to obtain Enterprise shareholder approval or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all or other delays in completing the proposed transaction; (12) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; (13) the outcome of any legal proceedings that may be instituted against Independent or Enterprise; (14) the possibility that the anticipated benefits of the proposed transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Independent and Enterprise do business; (15) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (16) diversion of management’s attention from ongoing business operations and opportunities; (17) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; (18) the dilution caused by Independent’s issuance of additional shares of its capital stock in connection with the proposed transaction; (19) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; and (20) other factors that may affect the future results of Independent and Enterprise.

Additional factors that could cause results to differ materially from those described above can be found in Independent’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of such reports, as well as in subsequent SEC filings, each of which is on file with the U.S. Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Independent’s website, www.rocklandtrust.com, under the heading “SEC Filings” and in other documents Independent files with the SEC, and in Enterprise’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of such reports, as well as in subsequent SEC filings, each of which is on file with and available in the “Investor Relations” section of Enterprise’s website, enterprisebancorp.q4ir.com, under the heading “SEC Filings” and in other documents Enterprise files with the SEC.

All forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither Independent nor Enterprise assumes any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by applicable law. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. All forward-looking statements, express or implied, included in the document are qualified in their entirety by this cautionary statement.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

This communication is being made with respect to the proposed transaction involving Independent and Enterprise. This material is not a solicitation of any vote or approval of the Enterprise shareholders and is not a substitute for the proxy statement/prospectus or any other documents that Independent and Enterprise may send to their respective shareholders in connection with the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

In connection with the proposed transaction between Independent and Enterprise, Independent has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) that includes a proxy statement for a special meeting of Enterprise’s shareholders to approve the proposed transaction and that also constitutes a prospectus for the Independent common stock that will be issued in the proposed transaction, as well as other relevant documents concerning the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS AND SHAREHOLDERS OF INDEPENDENT AND ENTERPRISE ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Enterprise will mail the proxy statement/prospectus to its shareholders. Shareholders are also urged to carefully review and consider Independent’s and Enterprise’s public filings with the SEC, including, but not limited to, their respective proxy statements, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Copies of the Registration Statement and of the proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about Independent and Enterprise, can be obtained, free of charge, as they become available at the SEC’s website (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, without charge, by directing a request to Independent Investor Relations, 288 Union Street, Rockland, Massachusetts 02370, telephone (774) 363-9872 or to Enterprise Bancorp, Inc., 222 Merrimack Street, Lowell, MA 01852, Attention: Corporate Secretary, telephone (978) 656-5578.

PARTICIPANTS IN THE SOLICITATION

Independent, Enterprise, and certain of their respective directors, executive officers and employees may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies from the shareholders of Enterprise in connection with the proposed transaction. Information regarding Independent’s directors and executive officers is available in its definitive proxy statement relating to its 2024 Annual Meeting of Shareholders, which was filed with the SEC on March 28, 2024, and its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 28, 2024, and other documents filed by Independent with the SEC. Information regarding Enterprise’s directors and executive officers is available in its definitive proxy statement relating to its 2024 Annual Meeting of Shareholders, which was filed with the SEC on April 3, 2024, and its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 8, 2024 and other documents filed by Enterprise with the SEC. Other information regarding the persons who may, under the SEC’s rules, be deemed to be participants in the proxy solicitation of Enterprise’s shareholders in connection with the proposed transaction, and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus regarding the proposed transaction and other relevant materials filed with the SEC when they become available, which may be obtained free of charge as described in the preceding paragraph.

Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578

The MIL Network –

January 29, 2025

MIL-OSI: Hanmi Financial Increases Cash Dividend 8% to $0.27 per share

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2025 first quarter of $0.27 per share, up 8% from the prior quarter. The dividend will be paid on February 26, 2025, to stockholders of record as of the close of business on February 10, 2025.

“Following another quarter of successful execution across our business, Hanmi is well positioned for continued success in 2025,” said Bonnie Lee, President and Chief Executive Officer. “The increase in our dividend reflects the Board’s confidence in Hanmi’s financial strength, relationship-driven banking model, and commitment to creating shareholder value.”

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 31 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
the imposition of tariffs or other domestic or international governmental polices impacting the value of the products of our borrowers;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Source: Hanmi Bank

The MIL Network –

January 29, 2025

MIL-OSI: Credicorp Ltd.: Credicorp’s Earnings Release and Conference Call 4Q24

Source: GlobeNewswire (MIL-OSI)

Lima, Jan. 28, 2025 (GLOBE NEWSWIRE) — Lima, PERU, January, Tuesday 28^th, 2025 – Credicorp Ltd. announces to its shareholders and the market that its 4Q24 Earnings Release Report will be released on Monday, February 10^th, 2025, after market close.

Credicorp’s Webcast / Conference Call to discuss such results; will be held on Tuesday, February 11^th, 2025, at 9:30 a.m. ET (9:30 a.m. Lima, Peru time).

The call will be hosted by:
Gianfranco Ferrari – Chief Executive Officer, – Alejandro Perez Reyes – Chief Financial Officer, Francesca Raffo – Chief Innovation Officer, Cesar Rios – Chief Risk Officer, Diego Cavero – Head of Universal Banking, Cesar Rivera – Head of Insurance and Pensions, Carlos Sotelo – Mibanco CFO and Investor Relations Team.

We encourage participants to pre-register for the listen-only webcast presentation using the following link:
https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10196121&linkSecurityString=fe53fdcc1c

Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.

Those unable to pre-register may dial in by calling:
Participant dial-in (toll-free): 1 844 435 0321
Participant international dial-in: 1 412 317 5615
Participant Web Phone: Click Here
Conference ID: Credicorp Conference Call

The webcast will be archived for one year on our investor relations website at:
https://credicorp.gcs-web.com/events-and-presentations/upcoming-events

Credicorp reminds you that we filed our Annual Report on Form 20-F for the fiscal year ended December 31^st, 2023 (2023 Form 20-F) with the Securities and Exchange Commission on April 24^th, 2024. The 2023 Form 20-F includes audited consolidated financial statements of Credicorp and its subsidiaries as of December 31^st, 2021,2022 and 2023 under IFRS. Our 2023 Form 20-F can be downloaded from Credicorp’s website: https://credicorp.gcs-web.com/annual-materials. Holders of Credicorp’s securities and any other interested parties may request a hard copy of our 2023 Form 20-F, free of charge, by filling out the form located on the link “mail request” on Credicorp’s website.

About Credicorp

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

For further information, please contact the IR team:

investorrelations@credicorpperu.com

Investor Relations
Credicorp Ltd.

The MIL Network –

January 29, 2025

MIL-OSI: Royalty Pharma to Announce Fourth Quarter and Full Year 2024 Financial Results on February 11, 2025

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Royalty Pharma plc (Nasdaq: RPRX) today announced that it will report its fourth quarter and full year 2024 financial results on Tuesday, February 11, 2025 before the U.S. financial markets open. The company will host a conference call and simultaneous webcast at 8:30 a.m. Eastern Time that day.

Conference Call Information

Please visit the “Investors” page of the company’s website at https://www.royaltypharma.com/investors/events/ to obtain conference call information and to view the live webcast. A replay of the conference call and webcast will be archived on the company’s website for at least 30 days.

About Royalty Pharma

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly – directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT and Gilead’s Trodelvy, and 14 development-stage product candidates. For more information, visit www.royaltypharma.com.

Royalty Pharma Investor Relations and Communications

+1 (212) 883-6637
ir@royaltypharma.com

The MIL Network –

January 29, 2025

MIL-OSI: BlackLine Announces Date for Fourth Quarter and Full Year 2024 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Jan. 28, 2025 (GLOBE NEWSWIRE) — BlackLine, Inc. (Nasdaq: BL) announced today that it will release financial results for the fourth quarter and full year ended December 31, 2024 after market close on Tuesday, February 11, 2025 followed by a conference call hosted by management at 2:00 p.m. PT / 5:00 p.m. ET. A live webcast and replay will be accessible on BlackLine’s investor relations website at https://investors.blackline.com/. To access the conference call by phone, please register here, and dial-in details will be provided. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

About BlackLine

BlackLine (Nasdaq: BL), the future-ready platform for the Office of the CFO, drives digital finance transformation by empowering organizations with accurate, efficient, and intelligent financial operations.

BlackLine’s comprehensive platform addresses mission-critical processes, including record-to-report and invoice-to-cash, enabling unified and accurate data, streamlined and optimized processes, and real-time insight through visibility, automation, and AI. BlackLine’s proven, collaborative approach ensures continuous transformation, delivering immediate impact and sustained value. With a proven track record of innovation, industry-leading R&D investment, and world-class security practices, more than 4,400 customers across multiple industries partner with BlackLine to lead their organizations into the future.

For more information, please visit blackline.com.

Investor Relations Contact:
Matt Humphries, CFA
matt.humphries@blackline.com

The MIL Network –

January 29, 2025

MIL-OSI: Chemung Financial Corporation Reports Annual Net Income of $23.7 million, or $4.96 per share, and Fourth Quarter 2024 Net Income of $5.9 million, or $1.24 per share

Source: GlobeNewswire (MIL-OSI)

ELMIRA, N.Y., Jan. 28, 2025 (GLOBE NEWSWIRE) — Chemung Financial Corporation (the “Corporation”) (Nasdaq: CHMG), the parent company of Chemung Canal Trust Company (the “Bank”), today reported net income of $23.7 million, or $4.96 per share, for the year ended December 31, 2024, compared to $25.0 million, or $5.28 per share, for the year ended December 31, 2023. Net income was $5.9 million, or $1.24 per share, for the fourth quarter of 2024, compared to $5.7 million, or $1.19 per share, for the third quarter of 2024, and $3.8 million, or $0.80 per share, for the fourth quarter of 2023.

“A prudent and relationship-based effort to manage funding costs provided a tailwind for fourth quarter earnings, and capped a solid year of results in an uncertain environment,” said Anders M. Tomson, President and CEO of Chemung Financial Corporation. “Strong net interest margin expansion speaks to the execution of Bank-wide strategic initiatives and a thoughtful approach to loan growth, particularly in our newly established Canal Bank division,” added Tomson.

“As we reflect on 2024 and look ahead to 2025, the Corporation is situated to perform well, due in large part to the combined efforts of our team over the past year. Our results demonstrate the continued value of a community-focused approach to banking, which we look forward to carrying on in the coming year,” concluded Tomson.

Fourth Quarter Highlights:

Net interest margin expanded 20 basis points compared to the prior quarter, from 2.72% in the third quarter 2024 to 2.92% in the fourth quarter 2024. ¹

Annual loan growth totaled 5.0% for the year ended December 31, 2024, including commercial and industrial growth of 13.3% and commercial real estate growth of 8.4%.

Non-performing loans to total loans declined nine basis points compared to September 30, 2024 and ten basis points compared to December 31, 2023, while non-performing assets to total assets declined five basis points compared to both September 30, 2024 and December 31, 2023.

Dividends declared during the fourth quarter 2024 were $0.31 per share.

¹ See the GAAP to Non-GAAP reconciliations.

2024 vs 2023

Net Interest Income:

Net interest income for the year ended December 31, 2024 totaled $74.1 million, compared to $74.5 million for the prior year, a decrease of $0.4 million, or 0.5%, driven by increases of $14.1 million in interest expense on deposits and $0.8 million in interest expense on borrowed funds, and a decrease of $1.3 million in interest and dividend income on taxable securities, offset by increases of $14.9 million in interest income on loans, including fees, and $0.9 million in interest income on interest-earning deposits.

Interest expense on deposits increased primarily due to a 68 basis points increase in the average interest rate paid on interest-bearing deposits, which included brokered deposits, and deposit campaigns primarily relating to time deposits. The increase in interest expense on borrowed funds was largely due to a $16.2 million increase in average balances of borrowed funds, compared to the prior year, partially offset by a 14 basis points decrease in the average interest rate paid on total borrowings, compared to the prior year. Average balances of borrowed funds in the current year consisted of FHLBNY overnight and term advances and a Federal Reserve Bank Term Funding Program Advance (BTFP), while borrowed funds in the prior year consisted primarily of FHLBNY overnight advances. The decrease in interest and dividend income on taxable securities was largely due to a decrease of $58.0 million in average balances of taxable securities, primarily due to paydowns on mortgage-backed and SBA pooled loan securities. The average yield on taxable securities was comparable between 2023 and 2024.

Interest income on loans, including fees increased primarily due to an increase of $117.5 million in average total loan balances and an increase of 44 basis points in the average yield on total loans. The increase in average balances was concentrated in the commercial portfolio, which increased $136.8 million compared to the prior year. Average balances of consumer loans and residential mortgage loans decreased $11.0 million and $8.3 million respectively, compared to the prior year. The average yield on commercial loans increased 37 basis points, while the average yields on consumer loans and residential mortgage loans increased 69 and 30 basis points respectively, compared to the prior year. The increase in interest income on interest-earning deposits was mainly due to an increase of $18.8 million in average balances of interest-earning deposits, due to an increase in deposits at the Federal Reserve Bank of New York.

Fully taxable equivalent net interest margin was 2.76% for the year ended December 31, 2024, compared to 2.85% for the prior year. Average interest-earning assets increased $76.9 million while average interest-bearing liabilities increased $108.1 million during 2024, compared to the prior year. The average yield on interest-earning assets increased 41 basis points to 4.74%, while the average cost of interest-bearing liabilities increased 67 basis points to 2.87% during 2024, compared to the prior year, both primarily due to the lagging effects of interest rate increases during 2022 and 2023.

Provision for Credit Losses:

Provision for credit losses for the year ended December 31, 2024 was a credit of $46 thousand, compared to a provision of $3.3 million for the prior year, a decrease of $3.3 million. The decrease was largely due to the annual review and update to the loss drivers which the Bank’s CECL model is based upon, resulting in a decline in baseline loss rates. The updates were applied beginning in the first quarter of 2024, and resulted in a credit to provision of $2.0 million for the first quarter of 2024. Additionally, provisioning in 2023 included a $0.9 million specific allocation on a nonaccrual commercial real estate relationship.

Non-Interest Income:

Non-interest income for the year ended December 31, 2024 was $23.2 million, compared to $24.5 million for the prior year, a decrease of $1.3 million, or 5.3%, driven by decreases of $2.5 million in other non-interest income and $0.2 million in interchange revenue from debit card transactions, offset by an increase of $1.1 million in wealth management group fee income.

Other non-interest income decreased primarily due to the recognition of a $2.4 million employee retention tax credit (ERTC) in the third quarter of 2023. The decrease in interchange revenue from debit card transactions was primarily due to a decrease in transactional volume compared to the prior year. The increase in wealth management group fee income was largely due to improvements in equity markets during 2024.

Non-Interest Expense:

Non-interest expense for the year ended December 31, 2024 was $67.3 million, compared to $64.2 million for the prior year, an increase of $3.1 million, or 4.8%, driven by increases of $1.6 million in salaries and wages, $0.7 million in pension and other employee benefits, $0.3 million in data processing, and $0.3 million in marketing and advertising.

Salaries and wages increased primarily due to additional staffing in the Bank’s new Western New York market, merit-based wage increases, and promotions, which was partially offset by savings from the outsourcing of certain back office functions during 2024. The increase in pension and other employee benefits was largely due to an increase in employee healthcare-related expenses, compared to the prior year. The increase in data processing was primarily due to the addition of new contracts, an increase in debit card procurement expenses, and an increase in cybersecurity software expense. The increase in marketing and advertising was mainly due to expenditures relating to the Bank’s 190th anniversary checking account promotion and ongoing CD campaigns, the launch of the Bank’s new Western New York “Canal Bank” brand, and a general increase in advertising efforts during the current year.

Income Tax Expense:

Income tax expense for the year ended December 31, 2024 was $6.4 million, compared to $6.5 million for the prior year, a decrease of $0.1 million. The effective tax rate for the year ended December 31, 2024 increased to 21.3%, compared to 20.6% for the prior year. The decrease in income tax expense was primarily due to a decrease in pretax income.

4th Quarter 2024 vs 3rd Quarter 2024

Net Interest Income:

Net interest income for the fourth quarter of 2024 totaled $19.8 million, compared to $18.4 million for the prior quarter, an increase of $1.4 million, or 7.6%, driven by decreases of $0.8 million in interest expense on deposits and $0.4 million in interest expense on borrowed funds, and an increase of $0.2 million in interest income on loans.

Interest expense on deposits decreased primarily due to a decrease of 21 basis points in the average interest rate paid on total interest-bearing deposits, despite an increase of $17.6 million in average balances of total interest-bearing deposits, compared to the prior quarter. The average interest rate paid on brokered deposits decreased 61 basis points, as the Bank replaced brokered deposits carrying higher interest rates with lower cost brokered deposits during the quarter. Average balances of brokered deposits increased $8.9 million compared to the prior quarter. The average interest rate paid on customer time deposits decreased 21 basis points and average balances of customer time deposits decreased $13.8 million in the current quarter, compared to the prior quarter. Both the decrease in average interest rate paid and average balances were largely due to a shift in the Bank’s CD campaign strategy, which included reducing the interest rates of its primary campaign offerings by 50 basis points in September. Customer time deposits comprised 22.1% of average total deposits for the three months ended December 31, 2024, compared to 23.0% for the three months ended September 30, 2024. The average interest rate paid on savings and money market deposits decreased 17 basis points, as the Bank adjusted rates offered on money market products to better align with current market conditions, while average balances of savings and money market deposits increased $6.7 million, compared to the prior quarter.

The decrease in interest expense on borrowed funds was primarily due to a decrease in the average cost of total borrowings of 34 basis points, and a decrease in average balances of borrowed funds of $27.5 million, compared to the prior quarter. The decrease in the average cost was partially due to decreases in benchmark interest rates during the quarter, and the decrease in average balances was partially due to an increase in average balances of brokered deposits and seasonal inflows of municipal deposits at the end of the prior quarter. Average balances of borrowed funds in the current quarter consisted primarily of FHLBNY overnight advances, while average balances in the prior quarter primarily consisted of a $30.0 million FHLBNY term advance and a $50.0 million BTFP advance. The FHLBNY term advance matured in September 2024, while the BTFP advance was prepaid in its entirety in October 2024, without prepayment penalty.

Interest income on loans, including fees, increased primarily due to a $32.6 million increase in average balances of commercial loans, despite a decrease of seven basis points in the average yield on commercial loans, compared to the prior quarter. Increases in average balances were distributed between commercial real estate and commercial and industrial loans, while the decrease in the average yield was largely due to rate decreases on existing variable rate loans. Total interest income on commercial loans included $0.3 million in interest income recognized on the payoff of a nonaccrual construction loan during the fourth quarter. Average balances of residential mortgage loans increased $1.3 million and the average yield on residential mortgage loans increased two basis points, compared to the prior quarter. Origination yields of residential mortgage loans remained elevated despite the declining interest rate environment. Average balances of consumer loans decreased $7.9 million while the average yield increased eight basis points, compared to the prior quarter, as runoff from the indirect auto portfolio exceeded originations.

Fully taxable equivalent net interest margin was 2.92% for the current quarter, compared to 2.72% for the prior quarter. Net interest margin was positively impacted by the recognition of $0.3 million in interest income on the payoff of a nonaccrual construction loan. Average interest-earning assets increased $12.0 million, while average interest-bearing liabilities decreased $9.8 million during the fourth quarter, compared to the prior quarter. The average yield on interest-earning assets increased one basis point to 4.79%, while the average cost of interest-bearing liabilities decreased 24 basis points to 2.73%, compared to the prior quarter.

Provision for Credit Losses:

Provision for credit losses was $0.6 million in the current quarter, in line with the prior quarter. Provisioning in the current quarter was primarily due to commercial loan growth and net charge-off activity on commercial and industrial and auto loans. Improvements in economic forecasts for unemployment and GDP in the current quarter benefited the provision for credit losses, compared to modest deterioration in the prior quarter.

Non-Interest Income:

Non-interest income for the fourth quarter of 2024 was $6.1 million, compared to $5.9 million for the prior quarter, an increase of $0.2 million, or 3.4%, driven by increases of $0.2 million in other non-interest income and $0.1 million in service charges on deposit accounts, offset by a decrease of $0.2 million in the change in fair value of equity investments.

Other non-interest income increased primarily due to an increase in interest rate swap fee income compared to the prior quarter. The increase in service charges on deposit accounts was mainly due to fee rate increases which were phased in during the fourth quarter of 2024. The decrease in the change in fair value of equity investments was largely due to a decrease in the market value of assets held for the Corporation’s deferred compensation plan, compared to the increase in market value in the prior quarter.

Non-Interest Expense:

Non-interest expense for the fourth quarter of 2024 was $17.8 million, compared to $16.5 million for the prior quarter, an increase of $1.3 million, or 7.9%, driven by increases of $0.7 million in pension and other employee benefits, $0.3 million in salaries and wages, $0.2 million in professional services, and $0.1 million in data processing expenses.

Pension and other employee benefits increased compared to the prior quarter primarily due to an increase in employee healthcare-related expenses. The increase in salaries and wages was largely due to an increase in quarterly incentive compensation expense and additional staffing for the Corporation’s newly established Western New York regional banking center. The increase in professional services was primarily due to an increase in consulting fees compared to the prior quarter. The increase in data processing was primarily due to an increase in debit card procurement expenses and cybersecurity initiatives.

Income Tax Expense:

Income tax expense for the fourth quarter of 2024 was $1.6 million, compared to $1.5 million for the prior quarter, an increase of $0.1 million. The effective tax rate for the current quarter increased to 21.2% from 20.9% in the prior quarter. The increase in income tax expense was primarily due to an increase in pretax income.

4th Quarter 2024 vs 4th Quarter 2023

Net Interest Income:

Net interest income for the fourth quarter of 2024 totaled $19.8 million, compared to $17.9 million for the same period in the prior year, an increase of $1.9 million, or 10.6%, driven by increases of $2.7 million in interest income on loans, including fees and $0.3 million in interest income on interest-earning deposits, and a decrease of $0.2 million in interest expense on borrowed funds, partially offset by an increase of $0.8 million in interest expense on deposits and a decrease of $0.4 million in interest income on taxable securities.

Interest income on loans, including fees, increased primarily due to a $116.8 million increase in average balances of commercial loans and an increase of 22 basis points in the average yield on commercial loans, compared to the same period in the prior year. The increase in average balances of commercial loans was concentrated in commercial real estate, while the increase in the average yield on commercial loans was mainly due to higher total origination yields throughout 2024. Average balances of residential mortgage loans decreased $4.7 million compared to the same period in the prior year, due to an increase in sales of new originations to the secondary market, while the average yield on residential mortgage loans increased 40 basis points compared to the same period in the prior year, partially due to higher origination yields on loans held for investment in 2024. Average consumer loan balances decreased $21.9 million compared to the same period in the prior year, largely due to net runoff of the indirect auto portfolio, while the average yield on consumer loans increased 49 basis points, primarily due to runoff of older vintage indirect auto loans, replaced by higher yielding new originations. Interest income on interest-earning deposits increased mainly due to a $22.7 million increase in average balances of interest-earning deposits, compared to the same period in the prior year.

The decrease in interest expense on borrowed funds was primarily due to a decrease of $12.0 million in average balances of FHLBNY overnight advances, and a decrease of 86 basis points in the average interest rate paid on FHLBNY overnight advances, compared to the same period in the prior year. Average balances of FHLBNY overnight advances decreased due to the liquidity provided by an increase in customer deposits, compared to the same period in the prior year. The decrease in the average interest rate paid on FHLBNY overnight advances was primarily due to the declining interest rate environment in the current year period, compared to the static interest rate environment in the prior year period.

Interest expense on deposits increased primarily due to an increase of $105.9 million in average balances of customer interest-bearing deposits, and an increase of 17 basis points in the average interest rate paid on customer interest-bearing deposits, compared to the same period in the prior year. Both the increase in average balances of and the average interest rate paid on customer interest-bearing deposits was largely due to CD campaigns throughout 2024. The average balances of customer time deposits increased $93.5 million, and the average interest rate paid on customer time deposits increased 25 basis points, compared to the same period in the prior year. Customer time deposits comprised 22.1% of average total deposits for the three months ended December 31, 2024, compared to 18.7% for the same period in the prior year. The average balances of and average interest rate paid on brokered deposits decreased $29.2 million and 60 basis points, respectively, compared to the same period in the prior year. The decrease in the average balances of brokered deposits was mainly due to the liquidity provided by an increase in total customer deposits, compared to the same period in the prior year. The decrease in interest income on taxable securities was largely due to paydowns and maturities of available for sale securities between the prior year period and current year period of $54.5 million, primarily on SBA pooled loan securities and mortgage-backed securities.

Fully taxable equivalent net interest margin was 2.92% for the fourth quarter of 2024, compared to 2.69% for the same period in the prior year. Average interest-earning assets increased $57.4 million, while average interest-bearing liabilities increased $68.6 million, compared to the same period in the prior year. The average yield on interest-earning assets increased 29 basis points to 4.79%, while the average cost of interest-bearing liabilities increased five basis points to 2.73%, compared to the same period in the prior year.

Provision for Credit Losses:

Provision for credit losses decreased $1.7 million for the fourth quarter of 2024, compared to the same period in the prior year. The decrease was largely due to a $0.9 million specific allocation on a commercial real estate relationship in the fourth quarter of the prior year as well as a substantial decline in prepayment speeds used in the Bank’s CECL model in the fourth quarter of the prior year.

Non-Interest Income:

Non-interest income for the fourth quarter of 2024 was $6.1 million, compared to $5.9 million for the same period in the prior year, an increase of $0.2 million, or 3.4%, driven by increases of $0.3 million in wealth management group fee income, $0.1 million in service charges on deposit accounts, and $0.1 million in other non-interest income, partially offset by a decrease of $0.3 million in the change in fair value of equity investments.

The increase in wealth management group fee income was primarily due to fee rate increases effective July 1, 2024. The increase in service charges on deposit accounts was largely due to fee rate increases phased in during the fourth quarter of the current year. The increase in other non-interest income was mainly due to an increase in interest rate swap fee income, compared to the same period in the prior year. The decrease in the change in fair value of equity investments was mainly due to a decrease in the market value of assets held for the Corporation’s deferred compensation plan during the current year period, compared to an increase in market value in the prior year period.

Non-Interest Expense:

Non-interest expense for the fourth quarter of 2024 was $17.8 million, compared to $16.8 million for the same period in the prior year, an increase of $1.0 million, or 5.9%, driven by increases of $0.6 million in salaries and wages, $0.4 million in pension and other employee benefits, and $0.2 million in data processing, partially offset by a decrease of $0.4 million in other non-interest expense.

Salaries and wages increased primarily due to an increase in base salaries, including merit-based increases and additional staffing for the Corporation’s newly opened Western New York regional banking center, as well as an increase in incentive compensation expense. The increase in pension and other employee benefits expense was largely due to additional payroll tax expense, employee profit-sharing expense, and employee healthcare-related expense compared to the same period in the prior year. The increase in data processing was primarily due to increases in software and debit card related expenses, the addition of new contracts, and cybersecurity initiatives. The decrease in other non-interest expense was largely due to a decrease in non-loan charge-offs compared to the same period in the prior year.

Income Tax Expense:

Income tax expense for the fourth quarter of 2024 was $1.6 million, compared to $0.8 million for the fourth quarter of 2023, an increase of $0.8 million. The effective tax rate for the current quarter was 21.2%, compared to 18.1% for the same period in the prior year. The increase in income tax expense was primarily due to an increase in pretax income.

Asset Quality

Non-performing loans totaled $9.0 million as of December 31, 2024, or 0.43% of total loans, compared to $10.4 million, or 0.53% of total loans as of December 31, 2023. The decrease in non-performing loans was mainly due to the payoff of two large nonaccrual loans, a $2.2 million construction loan and a $1.9 million commercial real estate loan, during the current year. There was $1.2 million in paydowns on other non-performing commercial loans during 2024. $3.9 million in commercial loan balances were added to non-performing loans during 2024, comprised of $3.5 million in commercial real estate loans and $0.4 million in commercial and industrial loans. Net charge-offs on commercial loans totaled $0.2 million in 2024. The net changes in non-performing residential mortgage and consumer loans were an increase of $0.1 million and a decrease of $0.1 million, respectively. Non-performing assets, which are comprised of non-performing loans, other real estate owned, and repossessed vehicles, were $9.6 million, or 0.35% of total assets as of December 31, 2024, compared to $10.7 million, or 0.40% of total assets as of December 31, 2023. Other real estate owned was $0.4 million and repossessed vehicles was $0.2 million as of December 31, 2024.

Total loan delinquencies as of December 31, 2024 decreased compared to December 31, 2023. Annualized net charge-offs to total average loans for the fourth quarter of 2024 were 0.12%, compared to 0.02% for the third quarter of 2024, and were 0.06% for the year ended December 31, 2024, compared to 0.05% for the year ended December 31, 2023. Annualized commercial net charge-offs were 0.07% of average commercial loan balances for the fourth quarter of 2024, primarily due to $0.3 million in net charge-offs on two commercial and industrial loans. Commercial net charge-offs for the year ended December 31, 2024 were 0.01% of average commercial loan balances. Annualized consumer net charge-offs were 0.45% of average consumer loan balances for the fourth quarter of 2024, and 0.35% of average consumer loan balances for the year ended December 31, 2024, both largely concentrated in indirect auto loans. Residential mortgage loans had net recovery rates for both the fourth quarter of 2024 and the year ended December 31, 2024.

The allowance for credit losses was $21.4 million as of December 31, 2024 and $22.5 million as of December 31, 2023. The allowance for credit losses on unfunded commitments, a component of other liabilities, was $0.8 million as of December 31, 2024 and $0.9 million as of December 31, 2023. The decrease in the allowance for credit losses was mainly due to the annual review and update to the loss drivers which the Bank’s CECL model is based upon. Recalibration of loss drivers resulted in a decline in the baseline loss rates which the model utilizes, and were applied beginning in the first quarter of 2024. Additionally, the FOMC projection for U.S. GDP improved as of December 31, 2024 compared to December 31, 2023. Partially offsetting these declines were loan growth, a decline in modeled prepayment speeds, and a slightly weaker FOMC projection for national unemployment as of December 31, 2024 compared to December 31, 2023. The allowance for credit losses was 238.87% of non-performing loans as of December 31, 2024 and 216.28% as of December 31, 2023. The allowance for credit losses to total loans was 1.03% as of December 31, 2024 and 1.14% as of December 31, 2023. Provision for credit losses as a percentage of period-end loan balances was 0.03% for the fourth quarter of 2024.

Balance Sheet Activity

Total assets were $2.776 billion as of December 31, 2024, compared to $2.711 billion as of December 31, 2023, an increase of $65.6 million, or 2.4%. This increase was driven by increases of $98.8 million in loans, net of deferred origination fees and costs, $10.2 million in cash and cash equivalents, and $2.7 million in accrued interest receivable and other assets, partially offset by a decrease of $48.9 million in total investment securities.

Loans, net of deferred origination fees and costs increased primarily due to growth concentrated in the commercial loan portfolio, which increased $129.2 million, or 9.3%, compared to prior year-end. Growth in commercial loans during the current year consisted of $35.1 million in commercial and industrial balances and $94.1 million in commercial real estate balances. Consumer loans decreased $27.4 million, or 8.9%, compared to prior-year end, largely due to lower indirect auto loan origination activity during the current year, and a relatively fast turnover rate in the portfolio. Residential mortgages decreased $3.0 million, or 1.1% compared to prior year-end, as the Corporation continued to elect to sell a portion of originations into the secondary market and demand remained weakened in the current interest rate environment.

The increase in cash and cash equivalents was mainly due to an increase of $77.2 million in FHLBNY overnight advances and $49.6 million in net paydowns and maturities of available for sale securities, partially offset by an increase of $98.8 million in loans, net of deferred origination fees and costs, and a decrease of $32.5 million in total deposits. The increase in accrued interest receivable and other assets was largely due to increases in prepaid expenses and interest receivable on interest rate swaps.

Total investment securities decreased primarily due to a decrease of $52.6 million in securities available for sale, compared to prior year-end. Net paydowns and maturities of securities available for sale for the current year totaled $49.6 million, mainly due to paydowns on mortgage-backed securities and SBA pooled loan securities. The market value of securities available for sale decreased $0.7 million, due to unfavorable changes in market interest rates during the current year. Partially offsetting the decrease in total investment securities was an increase of $3.6 million in FHLB and FRB stock, at cost, mainly due to an increase in FHLBNY overnight advances as of December 31, 2024, compared to prior year-end.

Total liabilities were $2.561 billion as of December 31, 2024, compared to $2.515 billion as of December 31, 2023, an increase of $45.6 million, or 1.8%. This increase was driven by increases of $77.9 million in advances and other debt and $0.4 million in accrued interest payable and other liabilities, partially offset by a decrease of $32.5 million in deposits.

Advances and other debt increased mainly due to an increase of $77.2 million in FHLBNY overnight advances and an increase of $0.7 million in finance lease obligations. The increase in accrued interest payable and other liabilities was primarily due to an increase in interest payable on deposits of $0.6 million.

Total deposits decreased by $32.5 million or 1.3%, compared to prior year-end, largely due to decreases of $50.6 million in brokered deposits, $28.6 million in money market deposits, and $27.4 million in non interest-bearing demand deposits. These decreases were partially offset by increases of $62.3 million in customer time deposits and $15.4 million in interest-bearing demand deposits. Additionally, savings deposits decreased $3.6 million. Non interest-bearing deposits comprised 26.1% and 26.9% of total deposits as of December 31, 2024 and December 31, 2023, respectively.

Total shareholders’ equity was $215.3 million as of December 31, 2024, compared to $195.2 million as of December 31, 2023, an increase of $20.1 million, or 10.3%, driven by an increase of $17.8 million in retained earnings and a decrease of $0.9 million in accumulated other comprehensive loss. The increase in retained earnings was mainly due to net income of $23.7 million, offset by dividends declared of $5.9 million during the year ended December 31, 2024. The decrease in accumulated other comprehensive loss was largely due to revised actuarial assumptions relating to the Corporation’s pension plans, offset by the unfavorable impact of interest rates on available for sale securities during the current year.

The total equity to total assets ratio was 7.76% as of December 31, 2024, compared to 7.20% as of December 31, 2023, and the tangible equity to tangible assets ratio was 7.02% as of December 31, 2024, compared to 6.45% as of December 31, 2023.¹ Book value per share and tangible book value per share increased to $45.13 and $40.55, respectively as of December 31, 2024 from $41.07 and $36.48, respectively as of December 31, 2023.¹ As of December 31, 2024, the Bank’s capital ratios were in excess of those required to be considered well-capitalized under the regulatory framework for prompt corrective action.

¹ See the GAAP to Non-GAAP reconciliations

Liquidity

The Corporation uses a variety of resources to manage its liquidity, and management believes it has the necessary liquidity to allow for flexibility in meeting its various operational and strategic needs. These include short-term investments, cash flow from lending and investing activities, core-deposit growth and non-core funding sources, such as time deposits of $250,000 or greater, brokered deposits, FHLBNY overnight and term advances, and FRB advances. Borrowings may be used on a short-term basis for liquidity purposes or on a long-term basis to fund asset growth. As of December 31, 2024, the Corporation’s cash and cash equivalents balance was $47.0 million. The Corporation also maintains an investment portfolio of securities available for sale, comprised primarily of US Government treasury securities, SBA loan pools, mortgage-backed securities, and municipal bonds. Although this portfolio generates interest income for the Corporation, it also serves as an available source of liquidity and capital if the need should arise. As of December 31, 2024, the Corporation’s investment in securities available for sale was $531.4 million, $349.9 million of which was not pledged as collateral. Additionally, as of December 31, 2024 the Bank’s total advance line capacity at the Federal Home Loan Bank of New York was $221.1 million, $109.1 million of which was utilized and $112.0 million of which was available as additional borrowing capacity. In January 2024, the Corporation utilized the BTFP with an advance of $50.0 million, which the Corporation paid off in October 2024, without prepayment penalty.

As of December 31, 2024, uninsured deposits totaled $652.3 million, or 27.2% of total deposits, including $145.6 million of municipal deposits collateralized by pledged assets, when required. As of December 31, 2023, uninsured deposits totaled $655.7 million, or 27.0% of total deposits, including $153.2 million of municipal deposits collateralized by pledged assets. Due to their fluidity, the Corporation closely monitors uninsured deposit levels when considering liquidity management strategies.

The Corporation considers brokered deposits to be an element of its deposit strategy, and anticipates it may continue utilizing brokered deposits as a secondary source of funding in support of growth. As of December 31, 2024, the Corporation had entered into brokered deposit arrangements with multiple brokers. As of December 31, 2024, brokered deposits carried terms between 3 and 48 months, totaling $92.2 million. Excluding brokered deposits, total deposits increased $18.1 million compared to December 31, 2023.

Other Items

The market value of total assets under management or administration in our Wealth Management Group was $2.212 billion as of December 31, 2024, including $301.9 million of assets under management or administration for the Corporation, compared to $2.242 billion as of December 31, 2023, including $381.3 million of assets under management or administration for the Corporation, a decrease of $30.4 million, or 1.4%. Excluding assets under management or administration for the Corporation, total market value of Wealth Management Group assets increased $49.0 million, or 2.6%, largely due to market improvements during 2024.

As previously announced on January 8, 2021, the Corporation’s Board of Directors approved a stock repurchase program. Under the repurchase program, the Corporation may repurchase up to 250,000 shares of its common stock, or approximately 5% of its then outstanding shares. The repurchase program permits shares to be repurchased in open market or privately negotiated transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. As of December 31, 2024, a total of 49,184 shares of common stock at a total cost of $2.0 million were repurchased by the Corporation under its share repurchase program. No shares were repurchased in the fourth quarter of 2024. The weighted average cost was $40.42 per share repurchased. Remaining buyback authority under the share repurchase program was 200,816 shares as of December 31, 2024.

During the fourth quarter, the Bank opened a full-service branch and regional banking center at 5529 Main Street in Williamsville, New York under the Canal Bank, a division of Chemung Canal Trust Company, name. After receiving regulatory approval, the Bank consolidated its previous branch operations in Clarence, New York into its Williamsville branch operations in December, and has converted the Clarence location into administrative offices in support of the Bank’s Western New York operations. Additionally, in November the Bank’s Ithaca, New York “Station” branch operations were consolidated into its nearby Ithaca location on Elmira Road.

About Chemung Financial Corporation

Chemung Financial Corporation is a $2.8 billion financial services holding company headquartered in Elmira, New York and operates 30 retail offices through its principal subsidiary, Chemung Canal Trust Company, a full service community bank with trust powers. Established in 1833, Chemung Canal Trust Company is the oldest locally-owned and managed community bank in New York State. Chemung Financial Corporation is also the parent of CFS Group, Inc., a financial services subsidiary offering non-traditional services including mutual funds, annuities, brokerage services, tax preparation services, and insurance.

This press release may be found at: www.chemungcanal.com under Investor Relations.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and the Private Securities Litigation Reform Act of 1995. The Corporation intends its forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in this press release. All statements regarding the Corporation’s expected financial position and operating results, the Corporation’s business strategy, the Corporation’s financial plans, forecasted demographic and economic trends relating to the Corporation’s industry and similar matters are forward-looking statements. These statements can sometimes be identified by the Corporation’s use of forward-looking words such as “may,” “will,” “anticipate,” “estimate,” “expect,” or “intend.” The Corporation cannot promise that its expectations in such forward-looking statements will turn out to be correct. The Corporation’s actual results could be materially different from expectations because of various factors, including changes in economic conditions or interest rates, credit risk, inflation, cyber security risks, difficulties in managing the Corporation’s growth, competition, changes in law or the regulatory environment, and changes in general business and economic trends.

Information concerning these and other factors, including Risk Factors, can be found in the Corporation’s periodic filings with the Securities and Exchange Commission (“SEC”), including the 2023 Annual Report on Form 10-K. These filings are available publicly on the SEC’s website at http://www.sec.gov, on the Corporation’s website at http://www.chemungcanal.com or upon request from the Corporate Secretary at (607) 737-3746. Except as otherwise required by law, the Corporation undertakes no obligation to publicly update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.

Chemung Financial Corporation
Consolidated Balance Sheets (Unaudited)
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
(in thousands)		2024			2024			2024			2024			2023
ASSETS
Cash and due from financial institutions	$	26,224		$	36,247		$	23,184		$	22,984		$	22,247
Interest-earning deposits in other financial institutions		20,811			44,193			47,033			71,878			14,600
Total cash and cash equivalents		47,035			80,440			70,217			94,862			36,847

Equity investments		3,235			3,244			3,090			3,093			3,046

Securities available for sale		531,442			554,575			550,927			566,028			583,993
Securities held to maturity		808			657			657			785			785
FHLB and FRB stock, at cost		9,117			4,189			5,506			4,071			5,498
Total investment securities		541,367			559,421			557,090			570,884			590,276

Commercial		1,516,525			1,464,205			1,445,258			1,425,437			1,387,321
Mortgage		274,979			274,099			271,620			277,246			277,992
Consumer		279,915			290,650			294,594			300,927			307,351
Loans, net of deferred loan fees		2,071,419			2,028,954			2,011,472			2,003,610			1,972,664
Allowance for credit losses		(21,388	)		(21,441	)		(21,031	)		(20,471	)		(22,517	)
Loans, net		2,050,031			2,007,513			1,990,441			1,983,139			1,950,147

Loans held for sale		—			—			381			96			—
Premises and equipment, net		16,375			14,915			14,731			14,183			14,571
Operating lease right-of-use assets		5,446			5,637			5,827			6,018			5,648
Goodwill		21,824			21,824			21,824			21,824			21,824
Accrued interest receivable and other assets		90,834			81,221			92,212			90,791			88,170
Total assets	$	2,776,147		$	2,774,215		$	2,755,813		$	2,784,890		$	2,710,529

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing demand deposits	$	625,762		$	616,126		$	619,192		$	656,330		$	653,166
Interest-bearing demand deposits		306,536			349,383			328,370			315,154			291,138
Money market deposits		595,123			630,870			613,131			631,350			623,714
Savings deposits		245,550			242,911			248,528			248,578			249,144
Time deposits		623,912			611,831			606,700			629,360			612,265
Total deposits		2,396,883			2,451,121			2,415,921			2,480,772			2,429,427

Advances and other debt		112,889			53,757			83,835			52,979			34,970
Operating lease liabilities		5,629			5,820			6,009			6,197			5,827
Accrued interest payable and other liabilities		45,437			42,863			48,826			47,814			45,064
Total liabilities		2,560,838			2,553,561			2,554,591			2,587,762			2,515,288

Shareholders’ equity
Common stock		53			53			53			53			53
Additional paid-in capital		48,783			48,457			48,102			47,794			47,773
Retained earnings		247,705			243,266			239,021			235,506			229,930
Treasury stock, at cost		(16,167	)		(15,987	)		(16,043	)		(16,147	)		(16,502	)
Accumulated other comprehensive loss		(65,065	)		(55,135	)		(69,911	)		(70,078	)		(66,013	)
Total shareholders’ equity		215,309			220,654			201,222			197,128			195,241
Total liabilities and shareholders’ equity	$	2,776,147		$	2,774,215		$	2,755,813		$	2,784,890		$	2,710,529

Period-end shares outstanding		4,771			4,774			4,772			4,768			4,754

Chemung Financial Corporation
Consolidated Statements of Income (Unaudited)
	Three Months Ended December 31,						Percent Change			Twelve Months Ended December 31,						Percent Change
(in thousands, except per share data)		2024			2023		Percent Change				2024			2023		Percent Change
Interest and dividend income:
Loans, including fees	$	28,805		$	26,115			10.3		$	112,128		$	97,228			15.3
Taxable securities		3,161			3,533			(10.5	)		13,029			14,283			(8.8	)
Tax exempt securities		247			257			(3.9	)		1,009			1,035			(2.5	)
Interest-earning deposits		384			128			200.0			1,398			528			164.8
Total interest and dividend income		32,597			30,033			8.5			127,564			113,074			12.8

Interest expense:
Deposits		12,191			11,349			7.4			50,052			35,926			39.3
Borrowed funds		585			786			(25.6	)		3,453			2,691			28.3
Total interest expense		12,776			12,135			5.3			53,505			38,617			38.6

Net interest income		19,821			17,898			10.7			74,059			74,457			(0.5	)
Provision (credit) for credit losses		551			2,300			(76.0	)		(46	)		3,262			(101.4	)
Net interest income after provision for credit losses		19,270			15,598			23.5			74,105			71,195			4.1

Non-interest income:
Wealth management group fee income		3,019			2,744			10.0			11,573			10,460			10.6
Service charges on deposit accounts		1,113			1,001			11.2			4,042			3,919			3.1
Interchange revenue from debit card transactions		1,099			1,138			(3.4	)		4,426			4,606			(3.9	)
Net gains on securities transactions		—			(39	)		N/M			—			(39	)		N/M
Change in fair value of equity investments		(54	)		202			(126.7	)		179			103			73.8
Net gains on sales of loans held for sale		52			54			(3.7	)		214			144			48.6
Net gains (losses) on sales of other real estate owned		4			23			N/M			(18	)		37			N/M
Income from bank owned life insurance		9			11			(18.2	)		38			43			(11.6	)
Other		814			737			10.4			2,776			5,276			(47.4	)
Total non-interest income		6,056			5,871			3.2			23,230			24,549			(5.4	)

Non-interest expense:
Salaries and wages		7,450			6,803			9.5			28,457			26,832			6.1
Pension and other employee benefits		2,296			1,901			20.8			8,083			7,368			9.7
Other components of net periodic pension and postretirement benefits		(218	)		(154	)		(41.6	)		(909	)		(676	)		(34.5	)
Net occupancy		1,472			1,395			5.5			5,832			5,637			3.5
Furniture and equipment		462			496			(6.9	)		1,659			1,728			(4.0	)
Data processing		2,656			2,506			6.0			10,093			9,840			2.6
Professional services		714			697			2.4			2,353			2,293			2.6
Marketing and advertising		239			203			17.7			1,182			923			28.1
Other real estate owned expense		41			(69	)		N/M			157			(20	)		N/M
FDIC insurance		503			520			(3.3	)		2,120			2,128			(0.4	)
Loan expense		374			258			45.0			1,182			1,047			12.9
Other		1,834			2,270			(19.2	)		7,041			7,143			(1.4	)
Total non-interest expense		17,823			16,826			5.9			67,250			64,243			4.7
Income before income tax expense		7,503			4,643			61.6			30,085			31,501			(4.5	)
Income tax expense		1,589			841			88.9			6,414			6,501			(1.3	)
Net income	$	5,914		$	3,802			55.5		$	23,671		$	25,000			(5.3	)

Basic and diluted earnings per share	$	1.24		$	0.80					$	4.96		$	5.28
Cash dividends declared per share	$	0.31		$	0.31					$	1.24		$	1.24
Average basic and diluted shares outstanding		4,774			4,743						4,770			4,732

N/M – Not Meaningful

Chemung Financial Corporation	As of or for the Three Months Ended															As of or for the Twelve Months Ended
Consolidated Financial Highlights (Unaudited)	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except per share data)		2024			2024			2024			2024			2023			2024			2023
RESULTS OF OPERATIONS
Interest income	$	32,597		$	32,362		$	31,386		$	31,219		$	30,033		$	127,564		$	113,074
Interest expense		12,776			13,974			13,625			13,130			12,135			53,505			38,617
Net interest income		19,821			18,388			17,761			18,089			17,898			74,059			74,457
Provision (credit) for credit losses		551			564			879			(2,040	)		2,300			(46	)		3,262
Net interest income after provision for credit losses		19,270			17,824			16,882			20,129			15,598			74,105			71,195
Non-interest income		6,056			5,919			5,598			5,657			5,871			23,230			24,549
Non-interest expense		17,823			16,510			16,219			16,698			16,826			67,250			64,243
Income before income tax expense		7,503			7,233			6,261			9,088			4,643			30,085			31,501
Income tax expense		1,589			1,513			1,274			2,038			841			6,414			6,501
Net income	$	5,914		$	5,720		$	4,987		$	7,050		$	3,802		$	23,671		$	25,000

Basic and diluted earnings per share	$	1.24		$	1.19		$	1.05		$	1.48		$	0.80		$	4.96		$	5.28
Average basic and diluted shares outstanding		4,774			4,773			4,770			4,764			4,743			4,770			4,732
PERFORMANCE RATIOS
Return on average assets		0.85	%		0.83	%		0.73	%		1.04	%		0.56	%		0.86	%		0.94	%
Return on average equity		10.73	%		10.81	%		10.27	%		14.48	%		8.63	%		11.53	%		14.11	%
Return on average tangible equity (a)		11.92	%		12.07	%		11.56	%		16.29	%		9.86	%		12.90	%		16.09	%
Efficiency ratio (unadjusted) (e)		68.88	%		67.92	%		69.43	%		70.32	%		70.79	%		69.12	%		64.89	%
Efficiency ratio (adjusted) (a)		68.64	%		67.69	%		69.19	%		70.07	%		70.42	%		68.89	%		66.20	%
Non-interest expense to average assets		2.57	%		2.39	%		2.38	%		2.47	%		2.48	%		2.45	%		2.41	%
Loans to deposits		86.42	%		82.78	%		83.26	%		80.77	%		81.20	%		86.42	%		81.20	%
YIELDS / RATES – Fully Taxable Equivalent
Yield on loans		5.61	%		5.65	%		5.52	%		5.51	%		5.31	%		5.57	%		5.13	%
Yield on investments		2.29	%		2.21	%		2.27	%		2.35	%		2.24	%		2.28	%		2.21	%
Yield on interest-earning assets		4.79	%		4.78	%		4.69	%		4.70	%		4.50	%		4.74	%		4.33	%
Cost of interest-bearing deposits		2.67	%		2.88	%		2.86	%		2.75	%		2.59	%		2.79	%		2.11	%
Cost of borrowings		4.74	%		5.08	%		5.04	%		5.15	%		5.52	%		5.03	%		5.17	%
Cost of interest-bearing liabilities		2.73	%		2.97	%		2.94	%		2.85	%		2.68	%		2.87	%		2.20	%
Interest rate spread		2.06	%		1.81	%		1.75	%		1.85	%		1.82	%		1.87	%		2.13	%
Net interest margin, fully taxable equivalent		2.92	%		2.72	%		2.66	%		2.73	%		2.69	%		2.76	%		2.85	%
CAPITAL
Total equity to total assets at end of period		7.76	%		7.95	%		7.30	%		7.08	%		7.20	%		7.76	%		7.20	%
Tangible equity to tangible assets at end of period (a)		7.02	%		7.22	%		6.56	%		6.34	%		6.45	%		7.02	%		6.45	%
Book value per share	$	45.13		$	46.22		$	42.17		$	41.34		$	41.07		$	45.13		$	41.07
Tangible book value per share (a)		40.55			41.65			37.59			36.77			36.48			40.55			36.48
Period-end market value per share		48.81			48.02			48.00			42.48			49.80			48.81			49.80
Dividends declared per share		0.31			0.31			0.31			0.31			0.31			1.24			1.24
AVERAGE BALANCES
Loans and loans held for sale (b)	$	2,046,270		$	2,020,280		$	2,009,823		$	1,989,185		$	1,956,022		$	2,016,481		$	1,898,986
Interest-earning assets		2,711,995			2,699,968			2,699,402			2,681,059			2,654,638			2,698,148			2,621,251
Total assets		2,761,875			2,751,392			2,740,967			2,724,391			2,688,536			2,744,721			2,660,329
Deposits		2,446,662			2,410,735			2,419,169			2,402,215			2,397,663			2,419,744			2,377,736
Total equity		219,254			210,421			195,375			195,860			174,868			205,280			177,187
Tangible equity (a)		197,430			188,597			173,551			174,036			153,044			183,456			155,363
ASSET QUALITY
Net charge-offs	$	594		$	78		$	306		$	182		$	171		$	1,160		$	941
Non-performing loans (c)		8,954			10,545			8,195			7,835			10,411			8,954			10,411
Non-performing assets (d)		9,606			11,134			8,872			8,394			10,737			9,606			10,737
Allowance for credit losses		21,388			21,441			21,031			20,471			22,517			21,388			22,517
Annualized net charge-offs to average loans		0.12	%		0.02	%		0.06	%		0.04	%		0.03	%		0.06	%		0.05	%
Non-performing loans to total loans		0.43	%		0.52	%		0.41	%		0.39	%		0.53	%		0.43	%		0.53	%
Non-performing assets to total assets		0.35	%		0.40	%		0.32	%		0.30	%		0.40	%		0.35	%		0.40	%
Allowance for credit losses to total loans		1.03	%		1.06	%		1.05	%		1.02	%		1.14	%		1.03	%		1.14	%
Allowance for credit losses to non-performing loans		238.87	%		203.33	%		256.63	%		261.28	%		216.28	%		238.87	%		216.28	%

(a) See the GAAP to Non-GAAP reconciliations.
(b) Loans and loans held for sale do not reflect the allowance for credit losses.
(c) Non-performing loans include non-accrual loans only.
(d) Non-performing assets include non-performing loans plus other real estate owned and repossessed vehicles.
(e) Efficiency ratio (unadjusted) is non-interest expense divided by the total of net interest income plus non-interest income.

Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)

	Three Months Ended December 31, 2024								Three Months Ended December 31, 2023								Three Months Ended December 31, 2024 vs. 2023
(in thousands)	Average Balance			Interest			Yield / Rate		Average Balance			Interest			Yield / Rate		Total Change			Due to Volume			Due to Rate

Interest-earning assets:
Commercial loans	$	1,486,012		$	22,069		5.91	%	$	1,369,198		$	19,649		5.69	%	$	2,420		$	1,665		$	755
Mortgage loans		274,705			2,739		3.99	%		279,361			2,531		3.59	%		208			(46	)		254
Consumer loans		285,553			4,051		5.64	%		307,463			3,991		5.15	%		60			(299	)		359
Taxable securities		594,667			3,169		2.12	%		647,650			3,537		2.17	%		(368	)		(287	)		(81	)
Tax-exempt securities		37,776			273		2.88	%		40,339			284		2.79	%		(11	)		(19	)		8
Interest-earning deposits		33,282			384		4.59	%		10,627			128		4.78	%		256			261			(5	)
Total interest-earning assets		2,711,995			32,685		4.79	%		2,654,638			30,120		4.50	%		2,565			1,275			1,290

Non interest-earning assets:
Cash and due from banks		25,056								25,142
Other assets		46,352								29,153
Allowance for credit losses		(21,528	)							(20,397	)
Total assets	$	2,761,875							$	2,688,536

Interest-bearing liabilities:
Interest-bearing checking	$	327,223		$	1,391		1.69	%	$	285,733		$	1,176		1.63	%	$	215		$	172		$	43
Savings and money market		871,196			4,278		1.95	%		900,367			4,383		1.93	%		(105	)		(148	)		43
Time deposits		540,817			5,618		4.13	%		447,273			4,374		3.88	%		1,244			951			293
Brokered deposits		74,861			904		4.80	%		104,043			1,416		5.40	%		(512	)		(367	)		(145	)
FHLBNY overnight advances		41,408			505		4.77	%		53,390			758		5.63	%		(253	)		(150	)		(103	)
FRB advances and other debt		6,987			80		4.56	%		3,074			28		3.61	%		52			44			8
Total interest-bearing liabilities		1,862,492			12,776		2.73	%		1,793,880			12,135		2.68	%		641			502			139

Non interest-bearing liabilities:
Demand deposits		632,565								660,247
Other liabilities		47,564								59,541
Total liabilities		2,542,621								2,513,668
Shareholders’ equity		219,254								174,868
Total liabilities and shareholders’ equity	$	2,761,875							$	2,688,536

Fully taxable equivalent net interest income					19,909								17,985				$	1,924		$	773		$	1,151
Net interest rate spread (1)							2.06	%							1.82	%
Net interest margin, fully taxable equivalent (2)							2.92	%							2.69	%
Taxable equivalent adjustment					(88	)							(87	)
Net interest income				$	19,821							$	17,898

(1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
(2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.

Chemung Financial Corporation
Average Consolidated Balance Sheets & Net Interest Income Analysis and Rate/Volume Analysis of Net Interest Income (Unaudited)

	Twelve Months Ended December 31, 2024								Twelve Months Ended December 31, 2023								Twelve Months Ended December 31, 2024 vs. 2023
(in thousands)	Average Balance			Interest			Yield / Rate		Average Balance			Interest			Yield / Rate		Total Change			Due to Volume			Due to Rate

Interest-earning assets:
Commercial loans	$	1,446,493		$	85,570		5.92	%	$	1,309,692		$	72,698		5.55	%	$	12,872		$	7,857		$	5,015
Mortgage loans		274,801			10,618		3.86	%		283,093			10,084		3.56	%		534			(302	)		836
Consumer loans		295,187			16,165		5.48	%		306,201			14,664		4.79	%		1,501			(547	)		2,048
Taxable securities		613,375			13,046		2.13	%		671,345			14,295		2.13	%		(1,249	)		(1,249	)		—
Tax-exempt securities		39,032			1,103		2.83	%		40,506			1,171		2.89	%		(68	)		(44	)		(24	)
Interest-earning deposits		29,260			1,398		4.78	%		10,414			528		5.07	%		870			902			(32	)
Total interest-earning assets		2,698,148			127,900		4.74	%		2,621,251			113,440		4.33	%		14,460			6,617			7,843

Non interest-earning assets:
Cash and due from banks		25,112								25,419
Other assets		42,950								33,871
Allowance for credit losses		(21,489	)							(20,212	)
Total assets	$	2,744,721							$	2,660,329

Interest-bearing liabilities:
Interest-bearing checking	$	313,070		$	5,561		1.78	%	$	286,097		$	3,136		1.10	%	$	2,425		$	321		$	2,104
Savings and money market		863,849			17,468		2.02	%		899,996			13,027		1.45	%		4,441			(542	)		4,983
Time deposits		526,727			22,221		4.22	%		375,545			12,414		3.31	%		9,807			5,827			3,980
Brokered deposits		90,729			4,802		5.29	%		140,845			7,349		5.22	%		(2,547	)		(2,645	)		98
FHLBNY overnight advances		21,907			1,151		5.17	%		48,851			2,577		5.28	%		(1,426	)		(1,374	)		(52	)
FRB advances and other debt		46,363			2,302		4.97	%		3,177			114		3.59	%		2,188			2,128			60
Total interest-bearing liabilities		1,862,645			53,505		2.87	%		1,754,511			38,617		2.20	%		14,888			3,715			11,173

Non interest-bearing liabilities:
Demand deposits		625,369								675,253
Other liabilities		51,427								53,378
Total liabilities		2,539,441								2,483,142
Shareholders’ equity		205,280								177,187
Total liabilities and shareholders’ equity	$	2,744,721							$	2,660,329

Fully taxable equivalent net interest income					74,395								74,823				$	(428	)	$	2,902		$	(3,330	)
Net interest rate spread (1)							1.87	%							2.13	%
Net interest margin, fully taxable equivalent (2)							2.76	%							2.85	%
Taxable equivalent adjustment					(336	)							(366	)
Net interest income				$	74,059							$	74,457

(1) Net interest rate spread is the difference in the average yield on interest-earning assets less the average rate on interest-bearing liabilities.
(2) Net interest margin is the ratio of fully taxable equivalent net interest income divided by average interest-earning assets.

Chemung Financial Corporation

GAAP to Non-GAAP Reconciliations (Unaudited)

The Corporation prepares its Consolidated Financial Statements in accordance with GAAP. See the Corporation’s unaudited consolidated balance sheets and statements of income contained within this press release. That presentation provides the reader with an understanding of the Corporation’s results that can be tracked consistently from period-to-period and enables a comparison of the Corporation’s performance with other companies’ GAAP financial statements.

In addition to analyzing the Corporation’s results on a reported basis, management uses certain non-GAAP financial measures, because it believes these non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Corporation and, therefore, facilitate a comparison of the Corporation with the performance of other companies. Non-GAAP financial measures used by the Corporation may not be comparable to similarly named non-GAAP financial measures used by other companies.

The SEC has adopted Regulation G, which applies to all public disclosures, including earnings releases, made by registered companies that contain “non-GAAP financial measures.” Under Regulation G, companies making public disclosures containing non-GAAP financial measures must also disclose, along with each non-GAAP financial measure, certain additional information, including a reconciliation of the non-GAAP financial measure to the closest comparable GAAP financial measure and a statement of the Corporation’s reasons for utilizing the non-GAAP financial measure as part of its financial disclosures. The SEC has exempted from the definition of “non-GAAP financial measures” certain commonly used financial measures that are not based on GAAP. When these exempted measures are included in public disclosures, supplemental information is not required. The following measures used in this Report, which are commonly utilized by financial institutions, have not been specifically exempted by the SEC and may constitute “non-GAAP financial measures” within the meaning of the SEC’s rules, although we are unable to state with certainty that the SEC would so regard them.

Fully Taxable Equivalent Net Interest Income and Net Interest Margin

Net interest income is commonly presented on a tax-equivalent basis. That is, to the extent that some component of the institution’s net interest income, which is presented on a before-tax basis, is exempt from taxation (e.g., is received by the institution as a result of its holdings of state or municipal obligations), an amount equal to the tax benefit derived from that component is added to the actual before-tax net interest income total. This adjustment is considered helpful in comparing one financial institution’s net interest income to that of other institutions or in analyzing any institution’s net interest income trend line over time, to correct any analytical distortion that might otherwise arise from the fact that financial institutions vary widely in the proportions of their portfolios that are invested in tax-exempt securities, and that even a single institution may significantly alter over time the proportion of its own portfolio that is invested in tax-exempt obligations. Moreover, net interest income is itself a component of a second financial measure commonly used by financial institutions, net interest margin, which is the ratio of net interest income to average interest-earning assets. For purposes of this measure as well, fully taxable equivalent net interest income is generally used by financial institutions, as opposed to actual net interest income, again to provide a better basis of comparison from institution to institution and to better demonstrate a single institution’s performance over time. The Corporation follows these practices.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except ratio data)		2024			2024			2024			2024			2023			2024			2023
NET INTEREST MARGIN – FULLY TAXABLE EQUIVALENT
Net interest income (GAAP)	$	19,821		$	18,388		$	17,761		$	18,089		$	17,898		$	74,059		$	74,457
Fully taxable equivalent adjustment		88			83			81			84			87			336			366
Fully taxable equivalent net interest income (non-GAAP)	$	19,909		$	18,471		$	17,842		$	18,173		$	17,985		$	74,395		$	74,823

Average interest-earning assets (GAAP)	$	2,711,995		$	2,699,968		$	2,699,402		$	2,681,059		$	2,654,638		$	2,698,148		$	2,621,251

Net interest margin – fully taxable equivalent (non-GAAP)		2.92	%		2.72	%		2.66	%		2.73	%		2.69	%		2.76	%		2.85	%

Efficiency Ratio

The unadjusted efficiency ratio is calculated as non-interest expense divided by total revenue (net interest income and non-interest income). The adjusted efficiency ratio is a non-GAAP financial measure which represents the Corporation’s ability to turn resources into revenue and is calculated as non-interest expense divided by total revenue (fully taxable equivalent net interest income and non-interest income), adjusted for one-time occurrences and amortization. This measure is meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s productivity measured by the amount of revenue generated for each dollar spent.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except ratio data)		2024			2024			2024			2024			2023			2024			2023
EFFICIENCY RATIO
Net interest income (GAAP)	$	19,821		$	18,388		$	17,761		$	18,089		$	17,898		$	74,059		$	74,457
Fully taxable equivalent adjustment		88			83			81			84			87			336			366
Fully taxable equivalent net interest income (non-GAAP)	$	19,909		$	18,471		$	17,842		$	18,173		$	17,985		$	74,395		$	74,823

Non-interest income (GAAP)	$	6,056		$	5,919		$	5,598		$	5,657		$	5,871		$	23,230		$	24,549
Less: net (gains) losses on security transactions		—			—			—			—			39			—			39
Less: recognition of employee retention tax credit		—			—			—			—			—			—			(2,370	)
Adjusted non-interest income (non-GAAP)	$	6,056		$	5,919		$	5,598		$	5,657		$	5,910		$	23,230		$	22,218

Non-interest expense (GAAP)	$	17,823		$	16,510		$	16,219		$	16,698		$	16,826		$	67,250		$	64,243

Efficiency ratio (unadjusted)		68.88	%		67.92	%		69.43	%		70.32	%		70.79	%		69.12	%		64.89	%
Efficiency ratio (adjusted)		68.64	%		67.69	%		69.19	%		70.07	%		70.42	%		68.89	%		66.20	%

Tangible Equity and Tangible Assets (Period-End)

Tangible equity, tangible assets, and tangible book value per share are each non-GAAP financial measures. Tangible equity represents the Corporation’s stockholders’ equity, less goodwill and intangible assets. Tangible assets represents the Corporation’s total assets, less goodwill and other intangible assets. Tangible book value per share represents the Corporation’s tangible equity divided by common shares at period-end. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except per share and ratio data)		2024			2024			2024			2024			2023			2024			2023
TANGIBLE EQUITY AND TANGIBLE ASSETS
(PERIOD END)
Total shareholders’ equity (GAAP)	$	215,309		$	220,654		$	201,222		$	197,128		$	195,241		$	215,309		$	195,241
Less: intangible assets		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)
Tangible equity (non-GAAP)	$	193,485		$	198,830		$	179,398		$	175,304		$	173,417		$	193,485		$	173,417

Total assets (GAAP)	$	2,776,147		$	2,774,215		$	2,755,813		$	2,784,890		$	2,710,529		$	2,776,147		$	2,710,529
Less: intangible assets		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)
Tangible assets (non-GAAP)	$	2,754,323		$	2,752,391		$	2,733,989		$	2,763,066		$	2,688,705		$	2,754,323		$	2,688,705

Total equity to total assets at end of period (GAAP)		7.76	%		7.95	%		7.30	%		7.08	%		7.20	%		7.76	%		7.20	%
Book value per share (GAAP)	$	45.13		$	46.22		$	42.17		$	41.34		$	41.07		$	45.13		$	41.07

Tangible equity to tangible assets at end of period (non-GAAP)		7.02	%		7.22	%		6.56	%		6.34	%		6.45	%		7.02	%		6.45	%
Tangible book value per share (non-GAAP)	$	40.55		$	41.65		$	37.59		$	36.77		$	36.48		$	40.55		$	36.48

Tangible Equity (Average)

Average tangible equity and return on average tangible equity are each non-GAAP financial measures. Average tangible equity represents the Corporation’s average stockholders’ equity, less average goodwill and intangible assets for the period. Return on average tangible equity measures the Corporation’s earnings as a percentage of average tangible equity. These measures are meaningful to the Corporation, as well as investors and analysts, in assessing the Corporation’s use of equity.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except ratio data)		2024			2024			2024			2024			2023			2024			2023
TANGIBLE EQUITY (AVERAGE)
Total average shareholders’ equity (GAAP)	$	219,254		$	210,421		$	195,375		$	195,860		$	174,868		$	205,280		$	177,187
Less: average intangible assets		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)		(21,824	)
Average tangible equity (non-GAAP)	$	197,430		$	188,597		$	173,551		$	174,036		$	153,044		$	183,456		$	155,363

Return on average equity (GAAP)		10.73	%		10.81	%		10.27	%		14.48	%		8.63	%		11.53	%		14.11	%
Return on average tangible equity (non-GAAP)		11.92	%		12.07	%		11.56	%		16.29	%		9.86	%		12.90	%		16.09	%

Adjustments for Certain Items of Income or Expense

In addition to disclosures of certain GAAP financial measures, including net income, EPS, ROA, and ROE, we may also provide comparative disclosures that adjust these GAAP financial measures for a particular period by removing from the calculation thereof the impact of certain transactions or other material items of income or expense occurring during the period, including certain nonrecurring items. The Corporation believes that the resulting non-GAAP financial measures may improve an understanding of its results of operations by separating out any such transactions or items that may have had a disproportionate positive or negative impact on the Corporation’s financial results during the particular period in question. In the Corporation’s presentation of any such non-GAAP (adjusted) financial measures not specifically discussed in the preceding paragraphs, the Corporation supplies the supplemental financial information and explanations required under Regulation G.

																As of or for the
	As of or for the Three Months Ended															Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
(in thousands, except per share and ratio data)		2024			2024			2024			2024			2023			2024			2023
NON-GAAP NET INCOME
Reported net income (GAAP)	$	5,914		$	5,720		$	4,987		$	7,050		$	3,802		$	23,671		$	25,000
Net (gains) losses on security transactions (net of tax)		—			—			—			—			29			—			29
Recognition of employee retention tax credit (net of tax)		—			—			—			—			—			—			(1,873	)
Net income (non-GAAP)	$	5,914		$	5,720		$	4,987		$	7,050		$	3,831		$	23,671		$	23,156

Average basic and diluted shares outstanding		4,774			4,773			4,770			4,764			4,743			4,770			4,732

Reported basic and diluted earnings per share (GAAP)	$	1.24		$	1.19		$	1.05		$	1.48		$	0.80		$	4.96		$	5.28
Reported return on average assets (GAAP)		0.85	%		0.83	%		0.73	%		1.04	%		0.56	%		0.86	%		0.94	%
Reported return on average equity (GAAP)		10.73	%		10.81	%		10.27	%		14.48	%		8.63	%		11.53	%		14.11	%

Basic and diluted earnings per share (non-GAAP)	$	1.24		$	1.19		$	1.05		$	1.48		$	0.81		$	4.96		$	4.89
Return on average assets (non-GAAP)		0.85	%		0.83	%		0.73	%		1.04	%		0.57	%		0.86	%		0.87	%
Return on average equity (non-GAAP)		10.73	%		10.81	%		10.27	%		14.48	%		8.69	%		11.53	%		13.07	%

Category: Financial

Source: Chemung Financial Corp

For further information contact:
Dale M. McKim, III, EVP and CFO
dmckim@chemungcanal.com
Phone: 607-737-3714

The MIL Network –

January 29, 2025

MIL-OSI: Veritex Holdings, Inc. Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

DALLAS, Jan. 28, 2025 (GLOBE NEWSWIRE) — Veritex Holdings, Inc. (“Veritex”, the “Company”, “we” or “our”) (Nasdaq: VBTX), the holding company for Veritex Community Bank, today announced the results for the fourth quarter and full year of 2024.

“We achieved significant milestones during 2024 as we improved our credit risk profile and strengthened and completed our balance sheet remake,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer. “My team and I are committed to continue to drive execution of our strategic plan in 2025. Now it’s back to what we do best; grow profitability.”

2024 Highlights:

Operating EPS was $2.17 for 2024;
Criticized loans decreased approximately $100 million during 2024;
Commercial real estate concentrations decreased from 320.2% for the year ended 2023 to 298.9% for the year ended 2024;
Nonperforming assets to total loans decreased 15 basis points to 0.62% from 2023;
Loan to deposit ratio decreased to 89.3% as of December 31, 2024 compared to 93.6% as of December 31, 2023;
Total deposits grew $414.4 million, or 4.0%, year-over-year;
Common equity tier 1 capital increased 80 bps to 11.09% as of December 31, 2024 compared to 10.29% as of December 31, 2023;
Tangible book value per common share increased 6.9%, or $1.40, during 2024 compared to 2023;
Allowance for credit losses (“ACL”) to total loans increased to 1.18%, or 4 bps, from 1.14% as of December 31, 2023;
Declared quarterly cash dividend of $0.20 per share of outstanding common stock payable on February 28, 2025;.and
Named one of the “Best Companies to Work For” by the 2024 Inaugural U.S. News & World Report which evaluates companies based on quality of pay, work/life balance, and opportunities for professional development and advancement.

	Quarter to Date									Full Year
*Financial Highlights*	Q4 2024			Q3 2024			Q4 2023				2024			2023
	(Dollars in thousands, except per share data) (unaudited)
GAAP
Net income	$	24,882		$	31,001		$	3,499		$	107,241		$	108,261
Diluted EPS		0.45			0.56			0.06			1.95			1.98
Book value per common share		29.37			29.53			28.18			29.37			28.18
Return on average assets¹		0.78	%		0.96	%		0.11	%		0.85	%		0.88	%
Return on average equity¹		6.17			7.79			0.92			6.85			7.21
Net interest margin		3.20			3.30			3.31			3.26			3.49
Efficiency ratio		67.04			61.94			77.49			62.62			55.82
Non-GAAP²
Operating earnings	$	29,769		$	32,181		$	31,625		$	119,397		$	142,114
Diluted operating EPS		0.54			0.59			0.58			2.17			2.60
Tangible book value per common share		21.61			21.72			20.21			21.61			20.21
Pre-tax, pre-provision operating earnings		40,945			44,555			47,688			173,576			222,211
Pre-tax, pre-provision operating return on average assets¹		1.28	%		1.38	%		1.54	%		1.37	%		1.81	%
Pre-tax, pre-provision operating return on average loans¹		1.72			1.83			1.97			1.81			2.32
Operating return on average assets¹		0.93			1.00			1.02			0.95			1.16
Return on average tangible common equity¹		9.04			11.33			2.00			10.10			10.91
Operating return on average tangible common equity¹		10.69			11.74			12.37			11.17			14.09
Operating efficiency ratio		62.98			60.63			55.50			60.22			50.94

¹ Annualized ratio.
² Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of these non-generally accepted accounting principles (“GAAP”) financial measures to their most directly comparable GAAP measures.

Results of Operations for the Three Months Ended December 31, 2024

Net Interest Income

For the three months ended December 31, 2024, net interest income before provision for credit losses was $96.1 million and net interest margin was 3.20%, compared to $100.1 million and 3.30%, respectively, for the three months ended September 30, 2024. The $3.9 million decrease, or 3.9%, in net interest income before provision for credit losses was primarily due to a $12.3 million decrease in interest income on loans primarily driven by a decrease in loan yields and average loan balances. This decrease was partially offset by a $1.1 million increase in interest income on debt securities, $6.0 million decrease in interest expense on certificates and other time deposits, $2.4 million decrease in interest expense on transaction and savings deposits during the three months ended December 31, 2024. Net interest margin decreased 10 bps from the three months ended September 30, 2024, primarily due to the decrease in loan yields during the three months ended December 31, 2024, partially offset by an increase in yields on debt securities.

Compared to the three months ended December 31, 2023, net interest income before provision for credit losses for the three months ended December 31, 2024 increased by $608 thousand, or 0.6%. The increase was primarily due to a $4.6 million increase in interest income on debt securities, a $3.7 million increase in interest income in deposits in financial institutions and fed funds sold, a $2.5 million decrease in interest expense on advances from FHLB and a $1.4 million decrease in transaction and savings deposits driven by an decrease in funding costs. The increase in net interest income was partially offset by a $10.4 million decrease in interest income on loans driven by a decrease in loan yields and average balances. Net interest margin decreased 11 bps to 3.20% for the three months ended December 31, 2024 from 3.31% for the three months ended December 31, 2023. The decrease was primarily due to the decrease in loan yields during the three months ended December 31, 2024.

Noninterest Income (Loss)

Noninterest income for the three months ended December 31, 2024 was $10.1 million, a decrease of $3.1 million, or 23.3%, compared to noninterest income of $13.1 million for the three months ended September 30, 2024. The decrease in noninterest income was primarily due to a $4.4 million loss on sales of debt securities as a result of a strategic restructuring in which we sold $188.9 million of lower-yielding AFS securities, at amortized cost, with a 3.89% average yield, and reinvested the proceeds in higher yielding AFS securities with a 5.67% average yield. The decrease was also the result of a decrease of $852 thousand of OREO income, higher amortization of our servicing assets of $829 thousand and a decrease of $681 thousands due to the change in the value of equity securities. The decrease was partially offset by an increase of $4.6 million increase in government guaranteed loan income.

Compared to the three months ended December 31, 2023, noninterest income for the three months ended December 31, 2024 increased $27.8 million, or 156.5%. The increase was primarily due to a $29.4 million loss on equity method investment income related to the write down of our equity method investment in Thrive during the three months ended December 31, 2023 with no corresponding loss recorded during the three months ended December 31, 2024. The Company has no remaining equity method investment in Thrive.

Noninterest Expense

Noninterest expense was $71.2 million for the three months ended December 31, 2024, compared to $70.1 million for the three months ended September 30, 2024, a increase of $1.1 million, or 1.6%. Changes within noninterest expenses items were nominal.

Noninterest expense was $71.2 million for the three months ended December 31, 2024, compared to $60.2 million for the three months ended December 31, 2023, an increase of $11.0 million, or 18.2%. The increase was primarily driven by a $6.8 million increase in salary and employee benefits, a $4.1 million increase in other expenses, a $1.2 million increase in data processing and software expenses, and a $951 thousand increase in marketing expenses. The increase was partially offset by a $2.1 million decrease in professional and regulatory fees.

Financial Condition

Total loans held for investment (“LHI”) was $8.90 billion at December 31, 2024, a decrease of $129.4 million, compared to September 30, 2024, and a decrease of $307.4 million, or 3.3%, compared to December 31, 2023.

Total deposits were $10.75 billion at December 31, 2024, an decrease of $283.4 million compared to September 30, 2024, and an increase of $414.4 million, or 4.0%, compared to December 31, 2023. The decrease from September 30, 2024 was primarily the result of a decrease of $667.1 million in certificates and other time deposits, a decrease of $452.4 million in noninterest-bearing deposits, and a decrease of $20.4 million in correspondent money market accounts. The decrease was partially offset by a increase of $856.4 million in interest-bearing transaction, money market, and savings deposits. The increase from December 31, 2023 was primarily the result of an increase in attractive deposits which consisted of $712.8 million in interest-bearing transaction, money market, and savings deposits. The increase was partially offset by a $232.9 million decrease in certificates and other time deposits, a $38.9 million decrease in correspondent money market accounts, and a $26.6 million decrease in non-interest bearing deposits.

Credit Quality

Nonperforming assets (“NPAs”) increased to $79.2 million, or 0.62% of total assets, at December 31, 2024, compared to $67.3 million, or 0.52% of total assets, at September 30, 2024. Net charge-offs compared to average loans outstanding were 21 bps for the year ended December 31, 2024, compared to 25 bps for year ended December 31, 2023.

ACL as a percentage of LHI was 1.18%, 1.21%, and 1.14% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The Company recorded a provision for credit losses of $2.3 million for the three months ended December 31, 2024, compared to a provision for credit losses of $4.0 million and $9.5 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The recorded provision for credit losses reported for the three months ended December 31, 2024, compared to the three months ended December 31, 2023 was primarily attributable to a decrease in the overall loans held for investment balances and changes in general reserves as a result of changes in economic factors. The Company recorded a benefit for unfunded commitments of $401 thousand and $1.5 million during the three months ended December 31, 2024, and December 31, 2023, respectively. There was no provision for unfunded commitments recorded during the three months ended in September 30, 2024. The decrease in the recorded benefit for unfunded commitments during the three months ended December 31, 2024, compared to the three months ended September 30, 2024, was primarily attributable to changes in the economic factors applied to unfunded commitment balances.

Dividend Information

On January 28, 2025, Veritex’s Board of Directors declared a quarterly cash dividend of $0.20 per share on its outstanding shares of common stock. The dividend will be paid on February 28, 2025 to stockholders of record as of the close of business on February 14, 2025.

Non-GAAP Financial Measures

Veritex’s management uses certain non-GAAP (U.S. generally accepted accounting principles) financial measures to evaluate its operating performance and provide information that is important to investors. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Veritex’s reported results prepared in accordance with GAAP. Specifically, Veritex reviews and reports tangible book value per common share, operating earnings, tangible common equity to tangible assets, return on average tangible common equity, pre-tax, pre-provision operating earnings, pre-tax, pre-provision operating return on average assets, pre-tax, pre-provision operating return on average loans, diluted operating earnings per share, operating return on average assets, operating return on average tangible common equity and operating efficiency ratio. Veritex has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to “Reconciliation of Non-GAAP Financial Measures” after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

The Company will host an investor conference call to review the results on Wednesday, January 29, 2025 at 8:30 a.m. Central Time. Participants may pre-register for the call by visiting https://edge.media-server.com/mmc/p/8uwctr48 and will receive a unique PIN, which can be used when dialing in for the call.

Participants may also register via teleconference at:
https://register.vevent.com/register/BIf4f4afb9195448ba90575ac59fb337bc. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are instructed to dial-in 15 minutes prior to the start time.

A replay will be available within approximately two hours after the completion of the call, and made accessible for one week. You may access the replay via webcast through the investor relations section of Veritex’s website.

About Veritex Holdings, Inc.

Headquartered in Dallas, Texas, Veritex is a bank holding company that conducts banking activities through its wholly-owned subsidiary, Veritex Community Bank, with locations throughout the Dallas-Fort Worth metroplex and in the Houston metropolitan area. Veritex Community Bank is a Texas state chartered bank regulated by the Texas Department of Banking and the Board of Governors of the Federal Reserve System. For more information, visit www.veritexbank.com.

Forward-Looking Statements

This earnings release includes “forward-looking statements”, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements relating to the expected payment of Veritex’s quarterly cash dividend; the impact of certain changes in Veritex’s accounting policies, standards and interpretations; a continuation of recent turmoil in the banking industry, responsive measures to mitigate and manage it and related supervisory and regulatory actions and costs and Veritex’s future financial performance, business and growth strategy, projected plans and objectives, as well as other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “seeks,” “targets,” “outlooks,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Veritex’s Annual Report on Form 10-K for the year ended December 31, 2023 and any updates to those risk factors set forth in Veritex’s Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov. If one or more events related to these or other risks or uncertainties materialize, or if Veritex’s underlying assumptions prove to be incorrect, actual results may differ materially from what Veritex anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Veritex does not undertake any obligation, and specifically declines any obligation, to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Veritex or persons acting on Veritex’s behalf may issue.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)

	For the Quarter Ended															For the Year Ended
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
	(Dollars and shares in thousands, except per-share data)
Per Share Data (Common Stock):
Basic EPS	$	0.46		$	0.57		$	0.50		$	0.44		$	0.06		$	1.97		$	2.00
Diluted EPS		0.45			0.56			0.50			0.44			0.06			1.95			1.98
Book value per common share		29.37			29.53			28.49			28.23			28.18			29.37			28.18
Tangible book value per common share¹		21.61			21.72			20.62			20.33			20.21			21.61			20.21
Dividends paid per common share outstanding²		0.20			0.20			0.20			0.20			0.20			0.80			0.80

Common Stock Data:
Shares outstanding at period end		54,517			54,446			54,350			54,496			54,338			54,517			54,338
Weighted average basic shares outstanding for the period		54,489			54,409			54,457			54,444			54,327			54,450			54,256
Weighted average diluted shares outstanding for the period		55,237			54,932			54,823			54,842			54,691			54,958			54,596

Summary of Credit Ratios:
ACL to total LHI		1.18	%		1.21	%		1.16	%		1.15	%		1.14	%		1.18	%		1.14	%
NPAs to total assets		0.62			0.52			0.65			0.82			0.77			0.62			0.77
NPAs to total loans and OREO		0.83			0.70			0.85			1.06			1.00			0.83			1.00
Net charge-offs to average loans outstanding³		0.32			0.01			0.28			0.22			0.40			0.21			0.25

Summary Performance Ratios:
Return on average assets³		0.78	%		0.96	%		0.87	%		0.79	%		0.11	%		0.85	%		0.88	%
Return on average equity³		6.17			7.79			7.10			6.33			0.92			6.85			7.21
Return on average tangible common equity^{1, 3}		9.04			11.33			10.54			9.52			2.00			10.10			10.91
Efficiency ratio		67.04			61.94			59.11			62.45			77.49			62.62			55.82
Net interest margin		3.20			3.30			3.29			3.24			3.31			3.26			3.49

Selected Performance Metrics – Operating:
Diluted operating EPS¹	$	0.54		$	0.59		$	0.52		$	0.53		$	0.58		$	2.17		$	2.60
Pre-tax, pre-provision operating return on average assets^{1, 3}		1.28	%		1.38	%		1.42	%		1.42	%		1.54	%		1.37	%		1.81	%
Pre-tax, pre-provision operating return on average loans^{1, 3}		1.72			1.83			1.83			1.84			1.97			1.81			2.32
Operating return on average assets^1,3		0.93			1.00			0.91			0.95			1.02			0.95			1.16
Operating return on average tangible common equity^1,3		10.69			11.74			10.94			11.34			12.37			11.17			14.09
Operating efficiency ratio¹		62.98			60.63			58.41			58.73			55.50			60.22			50.94
Risk weighted assets	$	11,247,813		$	11,290,800		$	11,450,997		$	11,407,446		$	11,387,825		$	11,247,813		$	11,387,825

Veritex Holdings, Inc. Capital Ratios:
Average stockholders’ equity to average total assets		12.58	%		12.31	%		12.26	%		12.43	%		12.27	%		12.40	%		12.22	%
Tangible common equity to tangible assets¹		9.54			9.37			9.14			9.02			9.18			9.54			9.18
Tier 1 capital to average assets (leverage)		10.32			10.06			10.06			10.12			10.03			10.32			10.03
Common equity tier 1 capital		11.09			10.86			10.49			10.37			10.29			11.09			10.29
Tier 1 capital to risk-weighted assets		11.36			11.13			10.75			10.63			10.56			11.36			10.56
Total capital to risk-weighted assets		13.96			13.91			13.45			13.33			13.18			13.96			13.18

¹ Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” after the financial highlights for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.
² Dividend amount represents dividend paid per common share subsequent to each respective quarter end.
³ Annualized ratio for quarterly metrics.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(In thousands)

	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
ASSETS
Cash and due from banks	$	52,486		$	54,165		$	53,462		$	41,884		$	58,914
Interest bearing deposits in other banks		802,714			1,046,625			598,375			698,885			570,149
Cash and cash equivalents	$	855,200		$	1,100,790		$	651,837		$	740,769		$	629,063
Debt securities, net		1,478,538			1,423,610			1,349,354			1,344,930			1,257,042
Other investments		69,638			71,257			75,885			76,788			76,238
Loans held for sale (“LHFS”)		89,309			48,496			57,046			64,762			79,072
LHI, mortgage warehouse (“MW”)		605,411			630,650			568,047			449,531			377,796
LHI, excluding MW		8,899,133			9,028,575			9,209,094			9,249,551			9,206,544
Total loans		9,593,853			9,707,721			9,834,187			9,763,844			9,663,412
ACL		(111,745	)		(117,162	)		(113,431	)		(112,032	)		(109,816	)
Bank-owned life insurance		85,324			84,776			84,233			85,359			84,833
Bank premises, furniture and equipment, net		113,480			114,202			105,222			105,299			105,727
Other real estate owned (“OREO”)		24,737			9,034			24,256			18,445			—
Intangible assets, net of accumulated amortization		28,664			32,825			35,817			38,679			41,753
Goodwill		404,452			404,452			404,452			404,452			404,452
Other assets		226,200			211,471			232,518			241,863			241,633
Total assets	$	12,768,341		$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing deposits	$	2,191,457		$	2,643,894		$	2,416,727		$	2,349,211		$	2,218,036
Interest-bearing transaction and savings deposits		5,061,157			4,204,708			3,979,454			4,220,114			4,348,385
Certificates and other time deposits		2,958,861			3,625,920			3,744,596			3,486,805			3,191,737
Correspondent money market deposits		541,117			561,489			584,067			597,690			580,037
Total deposits		10,752,592			11,036,011			10,724,844			10,653,820			10,338,195
Accounts payable and other liabilities		183,944			168,415			180,585			186,027			195,036
Advances from FHLB		—			—			—			100,000			100,000
Subordinated debentures and subordinated notes		230,736			230,536			230,285			230,034			229,783
Total liabilities		11,167,272			11,434,962			11,135,714			11,169,881			10,863,014
Commitments and contingencies
Stockholders’ equity:
Common stock		613			613			612			611			610
Additional paid-in capital		1,328,748			1,324,929			1,321,995			1,319,144			1,317,516
Retained earnings		507,903			493,921			473,801			457,499			444,242
Accumulated other comprehensive loss		(65,076	)		(40,330	)		(76,713	)		(71,157	)		(63,463	)
Treasury stock		(171,119	)		(171,119	)		(171,079	)		(167,582	)		(167,582	)
Total stockholders’ equity		1,601,069			1,608,014			1,548,616			1,538,515			1,531,323
Total liabilities and stockholders’ equity	$	12,768,341		$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(in thousands, except per share data)

	For the Quarter Ended													For the Year Ended
	Dec 31, 2024			Sep 30, 2024		Jun 30, 2024		Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
	(unaudited)			(unaudited)		(unaudited)		(unaudited)			(unaudited)			(unaudited)
Interest income:
Loans, including fees	$	154,998		$	167,261	$	166,979	$	161,942		$	165,443		$	651,180		$	648,245
Debt securities		16,893			15,830		15,408		13,695			12,282			61,826			44,364
Deposits in financial institutions and Fed Funds sold		11,888			12,571		7,722		8,050			8,162			40,231			28,331
Equity securities and other investments		940			1,001		1,138		900			1,717			3,979			5,934
Total interest income		184,719			196,663		191,247		184,587			187,604			757,216			726,874
Interest expense:
Transaction and savings deposits		44,841			47,208		45,619		46,784			46,225			184,452			148,975
Certificates and other time deposits		40,279			46,230		44,811		40,492			40,165			171,812			125,409
Advances from FHLB		130			47		1,468		1,391			2,581			3,036			41,024
Subordinated debentures and subordinated notes		3,328			3,116		3,113		3,114			3,100			12,671			12,352
Total interest expense		88,578			96,601		95,011		91,781			92,071			371,971			327,760
Net interest income		96,141			100,062		96,236		92,806			95,533			385,245			399,114
Provision for credit losses		2,300			4,000		8,250		7,500			9,500			22,050			42,512
(Benefit) provision for unfunded commitments		(401	)		—		—		(1,541	)		(1,500	)		(1,942	)		(2,041	)
Net interest income after provisions		94,242			96,062		87,986		86,847			87,533			365,137			358,643
Noninterest income:
Service charges and fees on deposit accounts		5,612			5,442		4,974		4,896			4,800			20,924			20,248
Loan fees		2,265			3,278		2,207		2,510			1,200			10,260			6,348
Loss on sales of debt securities		(4,397	)		—		—		(6,304	)		—			(10,701	)		(5,321	)
Government guaranteed loan income, net		5,368			780		1,320		2,614			4,378			10,082			19,982
Equity method investment (loss) income		—			—		—		—			(29,417	)		—			(30,589	)
Customer swap income		509			271		326		449			258			1,555			1,633
Other income		699			3,335		1,751		2,497			989			8,282			6,804
Total noninterest income (loss)		10,056			13,106		10,578		6,662			(17,792	)		40,402			19,105
Noninterest expense:
Salaries and employee benefits		37,446			37,370		32,790		33,365			30,606			140,971			122,070
Occupancy and equipment		4,633			4,789		4,585		4,677			4,670			18,684			19,351
Professional and regulatory fees		5,564			4,903		5,617		6,053			7,626			22,137			26,166
Data processing and software expense		5,741			5,268		5,097		4,856			4,569			20,962			18,539
Marketing		2,896			2,781		1,976		1,546			1,945			9,199			8,704
Amortization of intangibles		2,437			2,438		2,438		2,438			2,438			9,751			9,838
Telephone and communications		323			335		365		261			356			1,284			1,551
Other		12,154			12,216		10,273		8,920			8,028			43,563			27,245
Total noninterest expense		71,194			70,100		63,141		62,116			60,238			266,551			233,464
Income before income tax expense		33,104			39,068		35,423		31,393			9,503			138,988			144,284
Income tax expense		8,222			8,067		8,221		7,237			6,004			31,747			36,023
Net income	$	24,882		$	31,001	$	27,202	$	24,156		$	3,499		$	107,241		$	108,261

Basic EPS	$	0.46		$	0.57	$	0.50	$	0.44		$	0.06		$	1.97		$	2.00
Diluted EPS	$	0.45		$	0.56	$	0.50	$	0.44		$	0.06		$	1.95		$	1.98
Weighted average basic shares outstanding		54,489			54,409		54,457		54,444			54,327			54,450			54,256
Weighted average diluted shares outstanding		55,237			54,932		54,823		54,842			54,691			54,958			54,596

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)

	For the Quarter Ended
	December 31, 2024							September 30, 2024							December 31, 2023
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
	(Dollars in thousands)
Assets
Interest-earning assets:
Loans¹	$	8,957,193		$	147,782	6.56	%	$	9,184,182		$	159,163	6.89	%	$	9,280,439		$	161,021	6.88	%
LHI, MW		492,372			7,216	5.83			477,592			8,098	6.75			301,345			4,422	5.82
Debt securities		1,458,057			16,893	4.61			1,384,835			15,830	4.55			1,188,776			12,282	4.10
Interest-earning deposits in other banks		971,451			11,888	4.87			924,685			12,571	5.41			587,929			8,162	5.51
Equity securities and other investments		72,223			940	5.18			75,884			1,001	5.25			82,271			1,717	8.28
Total interest-earning assets		11,951,296			184,719	6.15			12,047,178			196,663	6.49			11,440,760			187,604	6.51
ACL		(117,293	)						(115,510	)						(111,937	)
Noninterest-earning assets		916,969							930,250							977,811
Total assets	$	12,750,972						$	12,861,918						$	12,306,634

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	5,001,159			44,841	3.57	%	$	4,700,196		$	47,208	4.00	%	$	4,547,911			46,225	4.03	%
Certificates and other time deposits		3,319,628			40,279	4.83			3,678,718			46,230	5.00			3,285,164			40,165	4.85
Advances from FHLB and Other		10,598			130	4.88			3,261			47	5.73			182,935			2,581	5.60
Subordinated debentures and subordinated notes		230,633			3,328	5.74			230,393			3,116	5.38			229,648			3,100	5.36
Total interest-bearing liabilities		8,562,018			88,578	4.12			8,612,568			96,601	4.46			8,245,658			92,071	4.43

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,400,809							2,486,676							2,322,555
Other liabilities		183,810							179,273							228,135
Total liabilities		11,146,637							11,278,517							10,796,348
Stockholders’ equity		1,604,335							1,583,401							1,510,286
Total liabilities and stockholders’ equity	$	12,750,972						$	12,861,918						$	12,306,634

Net interest rate spread²						2.03	%						2.03	%						2.08	%
Net interest income and margin³				$	96,141	3.20	%				$	100,062	3.30	%				$	95,533	3.31	%

¹ Includes average outstanding balances of LHFS of $46.4 million, $54.3 million and $31.2 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, and average balances of LHI, excluding MW.
² Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
³ Net interest margin is equal to net interest income divided by average interest-earning assets.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)

	For the Year Ended December 31,
		2024							2023
	Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate		Average Outstanding Balance			Interest Earned/ Interest Paid		Average Yield/ Rate
	(Dollars in thousands)
Assets
Interest-earning assets:
Loans¹	$	9,191,753		$	624,853	6.80	%	$	9,244,070		$	628,122	6.79	%
LHI, MW		417,985			26,327	6.30			347,596			20,123	5.79
Debt securities		1,372,812			61,826	4.50			1,173,880			44,364	3.78
Interest-earning deposits in other banks		762,569			40,231	5.28			542,959			28,331	5.22
Equity securities and other investments		75,825			3,979	5.25			120,135			5,934	4.94
Total interest-earning assets		11,820,944			757,216	6.41			11,428,640			726,874	6.36
ACL		(115,259	)						(103,179	)
Noninterest-earning assets		927,178							957,286
Total assets	$	12,632,863						$	12,282,747

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and savings deposits	$	4,728,453			184,452	3.90		$	4,197,517			148,975	3.55
Certificates and other time deposits		3,468,448			171,812	4.95			2,977,178			125,409	4.21
Advances from FHLB and Other		55,109			3,036	5.51			873,617			41,024	4.70
Subordinated debentures and subordinated notes		230,264			12,671	5.50			229,268			12,352	5.39
Total interest-bearing liabilities		8,482,274			371,971	4.39			8,277,580			327,760	3.96

Noninterest-bearing liabilities:
Noninterest-bearing deposits		2,397,681							2,309,983
Other liabilities		186,951							193,659
Total liabilities		11,066,906							10,781,222
Stockholders’ equity		1,565,957							1,501,525
Total liabilities and stockholders’ equity	$	12,632,863						$	12,282,747

Net interest rate spread²						2.02	%						2.40	%
Net interest income and margin³				$	385,245	3.26	%				$	399,114	3.49	%

¹Includes average outstanding balances of LHFS of $53.3 million and $25.7 million for the twelve months ended December 31, 2024 and 2023, respectively, and average balances of LHI, excluding MW.
² Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
³ Net interest margin is equal to net interest income divided by average interest-earning assets.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)

Yield Trend

	For the Quarter Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023
Average yield on interest-earning assets:
Loans¹	6.56	%	6.89	%	6.90	%	6.83	%	6.88	%
LHI, MW	5.83		6.75		6.36		6.27		5.82
Total loans	6.53		6.89		6.88		6.81		6.85
Debt securities	4.61		4.55		4.58		4.25		4.10
Interest-bearing deposits in other banks	4.87		5.41		5.54		5.54		5.51
Equity securities and other investments	5.18		5.25		5.80		4.75		8.28
Total interest-earning assets	6.15	%	6.49	%	6.54	%	6.44	%	6.51	%

Average rate on interest-bearing liabilities:
Interest-bearing demand and savings deposits	3.57	%	4.00	%	4.01	%	4.06	%	4.03	%
Certificates and other time deposits	4.83		5.00		5.02		4.96		4.85
Advances from FHLB	4.88		5.73		5.54		5.54		5.60
Subordinated debentures and subordinated notes	5.74		5.38		5.44		5.45		5.36
Total interest-bearing liabilities	4.12	%	4.46	%	4.50	%	4.47	%	4.43	%

Net interest rate spread²	2.03	%	2.03	%	2.04	%	1.97	%	2.08	%
Net interest margin³	3.20	%	3.30	%	3.29	%	3.24	%	3.31	%

¹ Includes average outstanding balances of LHFS of $46.4 million, $54.3 million, $58.5 million, $53.9 million and $31.2 million for the three months ended December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively, and average balances of LHI, excluding MW.
² Net interest rate spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
³ Net interest margin is equal to net interest income divided by average interest-earning assets.

Supplemental Yield Trend

	For the Quarter Ended										For the Year Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Average cost of interest-bearing deposits	4.07	%	4.44	%	4.46	%	4.43	%	4.38	%	4.35	%	3.82	%
Average costs of total deposits, including noninterest-bearing	3.16		3.42		3.46		3.42		3.37		3.36		2.89

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)

LHI and Deposit Portfolio Composition

	Dec 31, 2024					Sep 30, 2024					Jun 30, 2024					Mar 31, 2024					Dec 31, 2023
	(In thousands, except percentages)
LHI¹
Commercial and Industrial (“C&I”)	$	2,693,538		30.2	%	$	2,728,544		30.2	%	$	2,798,260		30.4	%	$	2,785,987		30.1	%	$	2,752,063		29.9	%
Real Estate:
Owner occupied commercial (“OOCRE”)		780,003		8.8			807,223		8.9			806,285		8.7			788,376		8.5			794,088		8.6
Non-owner occupied commercial (“NOOCRE”)		2,382,499		26.7			2,338,094		25.9			2,369,848		25.7			2,352,993		25.5			2,350,725		25.5
Construction and land		1,303,711		14.7			1,436,540		15.8			1,536,580		16.7			1,568,257		16.9			1,734,254		18.8
Farmland		31,690		0.4			32,254		0.4			30,512		0.3			30,979		0.3			31,114		0.3
1-4 family residential		957,341		10.7			944,755		10.5			917,402		10.0			969,401		10.5			937,119		10.2
Multi-family residential		750,218		8.4			738,090		8.2			748,740		8.1			751,607		8.1			605,817		6.6
Consumer		9,115		0.1			11,292		0.1			9,245		0.1			8,882		0.1			10,149		0.1
Total LHI¹	$	8,908,115		100	%	$	9,036,792		100	%	$	9,216,872		100	%	$	9,256,482		100	%	$	9,215,329		100	%

MW		605,411					630,650					568,047					449,531					377,796

Total LHI¹	$	9,513,526				$	9,667,442				$	9,784,919				$	9,706,013				$	9,593,125

Total LHFS		89,309					48,496					57,046					64,762					79,072

Total loans	$	9,602,835				$	9,715,938				$	9,841,965				$	9,770,775				$	9,672,197

Deposits
Noninterest-bearing	$	2,191,457		20.4	%	$	2,643,894		24.0	%	$	2,416,727		22.5	%	$	2,349,211		22.1	%	$	2,218,036		21.5	%
Interest-bearing transaction		839,005		7.8			421,059		3.8			523,272		4.9			724,171		6.8			927,193		8.9
Money market		3,772,964		35.1			3,462,709		31.4			3,268,286		30.5			3,326,742		31.2			3,284,324		31.8
Savings		449,188		4.2			320,940		2.9			187,896		1.8			169,201		1.6			136,868		1.3
Certificates and other time deposits		2,958,861		27.5			3,625,920		32.8			3,744,596		34.9			3,486,805		32.7			3,191,737		30.9
Correspondent money market account		541,117		5.0			561,489		5.1			584,067		5.4			597,690		5.6			580,037		5.6
Total deposits	$	10,752,592		100	%	$	11,036,011		100	%	$	10,724,844		100	%	$	10,653,820		100	%	$	10,338,195		100	%

Total loans to total deposits ratio		89.3	%				88.0	%				91.8	%				91.7	%				93.6	%

Total loans to Deposit Ratio, excluding MW loans and LHFS		82.8	%				81.9	%				85.9	%				86.9	%				89.1	%

¹ Total LHI does not include deferred costs of $9.0 million, $8.2 million, $7.8 million, $6.9 million and $8.8 million at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 2023, respectively.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Financial Highlights
(Unaudited)

Asset Quality

	For the Quarter Ended															For the Year Ended
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
	(In thousands, except percentages)
NPAs:
Nonaccrual loans	$	52,521		$	55,335		$	58,537		$	75,721		$	79,133		$	52,521		$	79,133
Nonaccrual PCD loans¹		—			70			73			9,419			13,715			—			13,715
Accruing loans 90 or more days past due²		1,914			2,860			143			220			2,975			1,914			2,975
Total nonperforming loans held for investment (“NPLs”)		54,435			58,265			58,753			85,360			95,823			54,435			95,823
Other real estate owned (“OREO”)		24,737			9,034			24,256			18,445			—			24,737			—
Total NPAs	$	79,172		$	67,299		$	83,009		$	103,805		$	95,823		$	79,172		$	95,823

Charge-offs:
1-4 family residential	$	—		$	—		$	(31	)	$	—		$	(21	)	$	(31	)	$	(21	)
Multifamily		—			—			(198	)		—			(192	)		(198	)		(192	)
OOCRE		—			—			—			(120	)		(364	)		(120	)		(855	)
NOOCRE		(5,113	)		—			(1,969	)		(4,293	)		(5,434	)		(11,375	)		(13,649	)
C&I		(4,586	)		(2,259	)		(5,601	)		(946	)		(3,893	)		(13,392	)		(10,413	)
Consumer		(420	)		(54	)		(30	)		(71	)		(33	)		(575	)		(236	)
Total charge-offs	$	(10,119	)	$	(2,313	)	$	(7,829	)	$	(5,430	)	$	(9,937	)	$	(25,691	)	$	(25,366	)

Recoveries:
1-4 family residential	$	2		$	3		$	—		$	1		$	1		$	6		$	3
OOCRE		—			—			120			—			—			120			—
NOOCRE		1,323			—			—			—			—			1,323			350
C&I		1,047			1,962			361			96			387			3,466			1,165
MW					46			—			—			—			46			—
Consumer		30			33			497			49			34			609			100
Total recoveries	$	2,402		$	2,044		$	978		$	146		$	422		$	5,570		$	1,618

Net charge-offs	$	(7,717	)	$	(269	)	$	(6,851	)	$	(5,284	)	$	(9,515	)	$	(20,121	)	$	(23,748	)

Provision for credit losses	$	2,300		$	4,000		$	8,250		$	7,500		$	9,500		$	22,050		$	42,512

ACL	$	111,745		$	117,162		$	113,431		$	112,032		$	109,816		$	111,745		$	109,816

Asset Quality Ratios:
NPAs to total assets		0.62	%		0.52	%		0.65	%		0.82	%		0.77	%		0.62	%		0.77	%
NPAs, excluding nonaccrual PCD loans, to total assets		0.62			0.52			0.65			0.74			0.66			0.62			0.66
NPAs to total loans and OREO		0.83			0.70			0.85			1.06			1.00			0.83			1.00
NPLs to total LHI		0.57			0.60			0.60			0.88			1.00			0.57			1.00
NPLs, excluding nonaccrual PCD loans, to total LHI		0.57			0.60			0.60			0.78			0.86			0.57			0.86
ACL to total LHI		1.18			1.21			1.16			1.15			1.14			1.18			1.14
ACL to total loans, excluding MW and LHFS		1.25			1.30			1.23			1.21			1.19			1.25			1.19
Net charge-offs to average loans outstanding³		0.32			0.01			0.28			0.22			0.40			0.21			0.25

¹ Nonaccrual PCD loans consist of PCD loans that transitioned upon adoption of ASC 326 Financial Instruments – Credit Losses and were accounted for on a pooled basis that have subsequently been placed on nonaccrual status.
² Accruing loans greater than 90 days past due exclude PCD loans greater than 90 days past due that are accounted for on a pooled basis.
³Annualized ratio for quarterly metrics.

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

We identify certain financial measures discussed in this earnings release as being “non-GAAP financial measures.” In accordance with SEC rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP, in our statements of income, balance sheets or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios calculated using exclusively either one or both of (i) financial measures calculated in accordance with GAAP and (ii) operating measures or other measures that are not non-GAAP financial measures.

The non-GAAP financial measures that we present in this earnings release should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that we present in this earnings release may differ from that of other companies reporting measures with similar names. You should understand how such other financial institutions calculate their financial measures that appear to be similar or have similar names to the non-GAAP financial measures we have discussed in this earnings release when comparing such non-GAAP financial measures.

Tangible Book Value Per Common Share. Tangible book value per common share is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total stockholders’ equity less goodwill and core deposit intangibles, net of accumulated amortization; and (b) tangible book value per common share as tangible common equity (as described in clause (a)) divided by number of common shares outstanding. For tangible book value per common share, the most directly comparable financial measure calculated in accordance with GAAP is book value per common share.

We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in core deposit intangibles. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.

The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity and presents our tangible book value per common share compared with our book value per common share:

	As of
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
	(Dollars in thousands, except per share data)
Tangible Common Equity
Total stockholders’ equity	$	1,601,069		$	1,608,014		$	1,548,616		$	1,538,515		$	1,531,323
Adjustments:
Goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Core deposit intangibles		(18,744	)		(21,182	)		(23,619	)		(26,057	)		(28,495	)
Tangible common equity	$	1,177,873		$	1,182,380		$	1,120,545		$	1,108,006		$	1,098,376
Common shares outstanding		54,517			54,446			54,350			54,496			54,338

Book value per common share	$	29.37		$	29.53		$	28.49		$	28.23		$	28.18
Tangible book value per common share	$	21.61		$	21.72		$	20.62		$	20.33		$	20.21

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

Tangible Common Equity to Tangible Assets. Tangible common equity to tangible assets is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total stockholders’ equity, less goodwill and core deposit intangibles, net of accumulated amortization; (b) tangible assets as total assets less goodwill and core deposit intangibles, net of accumulated amortization; and (c) tangible common equity to tangible assets as tangible common equity (as described in clause (a)) divided by tangible assets (as described in clause (b)). For tangible common equity to tangible assets, the most directly comparable financial measure calculated in accordance with GAAP is total stockholders’ equity to total assets.

We believe that this measure is important to many investors in the marketplace who are interested in the relative changes from period to period in common equity and total assets, in each case, exclusive of changes in core deposit intangibles. Goodwill and other intangible assets have the effect of increasing both total stockholders’ equity and assets while not increasing our tangible common equity or tangible assets.

The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity and total assets to tangible assets and presents our tangible common equity to tangible assets:

	As of
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
	(Dollars in thousands)
Tangible Common Equity
Total stockholders’ equity	$	1,601,069		$	1,608,014		$	1,548,616		$	1,538,515		$	1,531,323
Adjustments:
Goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Core deposit intangibles		(18,744	)		(21,182	)		(23,619	)		(26,057	)		(28,495	)
Tangible common equity	$	1,177,873		$	1,182,380		$	1,120,545		$	1,108,006		$	1,098,376
Tangible Assets
Total assets	$	12,768,341		$	13,042,976		$	12,684,330		$	12,708,396		$	12,394,337
Adjustments:
Goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Core deposit intangibles		(18,744	)		(21,182	)		(23,619	)		(26,057	)		(28,495	)
Tangible Assets	$	12,345,145		$	12,617,342		$	12,256,259		$	12,277,887		$	11,961,390
Tangible Common Equity to Tangible Assets		9.54	%		9.37	%		9.14	%		9.02	%		9.18	%

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

Return on Average Tangible Common Equity. Return on average tangible common equity is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) net income available for common stockholders adjusted for amortization of core deposit intangibles (which we refer to as “return”) as net income, plus amortization of core deposit intangibles, less tax benefit at the statutory rate; (b) average tangible common equity as total average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization; and (c) return (as described in clause (a)) divided by average tangible common equity (as described in clause (b)). For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity.

We believe that this measure is important to many investors in the marketplace who are interested in the return on common equity, exclusive of the impact of core deposit intangibles. Goodwill and core deposit intangibles have the effect of increasing total stockholders’ equity while not increasing our tangible common equity. This measure is particularly relevant to acquisitive institutions that may have higher balances in goodwill and core deposit intangibles than non-acquisitive institutions.

The following table reconciles, as of the dates set forth below, average tangible common equity to average common equity and net income available for common stockholders adjusted for amortization of core deposit intangibles, net of taxes to net income and presents our return on average tangible common equity:

	For the Quarter Ended															For the Year Ended
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
	(Dollars in thousands)
Net income available for common stockholders adjusted for amortization of core deposit intangibles
Net income	$	24,882		$	31,001		$	27,202		$	24,156		$	3,499		$	107,241		$	108,261
Adjustments:
Plus: Amortization of core deposit intangibles		2,437			2,438			2,438			2,438			2,438			9,751			9,752
Less: Tax benefit at the statutory rate		512			512			512			512			512			2,048			2,048
Net income available for common stockholders adjusted for amortization of core deposit intangibles	$	26,807		$	32,927		$	29,128		$	26,082		$	5,425		$	114,944		$	115,965

Average Tangible Common Equity
Total average stockholders’ equity	$	1,604,335		$	1,583,401		$	1,541,609		$	1,533,868		$	1,510,286		$	1,565,957		$	1,501,525
Adjustments:
Average goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Average core deposit intangibles		(20,342	)		(22,789	)		(25,218	)		(27,656	)		(30,093	)		(23,988	)		(33,718	)
Average tangible common equity	$	1,179,541		$	1,156,160		$	1,111,939		$	1,101,760		$	1,075,741		$	1,137,517		$	1,063,355
Return on Average Tangible Common Equity (Annualized)		9.04	%		11.33	%		10.54	%		9.52	%		2.00	%		10.10	%		10.91	%

VERITEX HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

Operating Earnings, Pre-tax, Pre-provision Operating Earnings and performance metrics calculated using Operating Earnings and Pre-tax, Pre-provision Operating Earnings, including Diluted Operating Earnings per Share, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Assets, Pre-tax, Pre-Provision Operating Return on Average Loans, Operating Return on Average Tangible Common Equity and Operating Efficiency Ratio. Operating earnings, pre-tax, pre-provision operating earnings and the performance metrics calculated using these metrics, listed below, are non-GAAP measures used by management to evaluate the Company’s financial performance. We calculate (a) operating earnings as net income plus equity method investment write-down, plus FDIC special assessment, plus severance payments, plus loss on sale of debt securities AFS, net, less tax impact of adjustments, plus nonrecurring tax adjustments. We calculate (b) diluted operating earnings per share as operating earnings as described in clause (a) divided by weighted average diluted shares outstanding. We calculate (c) pre-tax, pre-provision operating earnings as operating earnings as described in clause (a) plus provision for income taxes, plus benefit (provision) for credit losses and unfunded commitments. We calculate (d) pre-tax, pre-provision operating return on average assets as pre-tax, pre-provision operating earnings as described in clause (a) divided by total average assets. We calculate (e) operating return on average assets as operating earnings as described in clause (a) divided by total average assets. We calculate (f) operating return on average tangible common equity as operating earnings as described in clause (a), adjusted for the amortization of intangibles and tax benefit at the statutory rate, divided by total average tangible common equity (average stockholders’ equity less average goodwill and average core deposit intangibles, net of accumulated amortization). We calculate (g) operating efficiency ratio as noninterest expense plus adjustments to operating noninterest expense divided by noninterest income plus adjustments to operating noninterest income, plus net interest income

We believe that these measures and the operating metrics calculated utilizing these measures are important to management and many investors in the marketplace who are interested in understanding the ongoing operating performance of the Company and provide meaningful comparisons to its peers.

The following tables reconcile, as of the dates set forth below, operating net income and pre-tax, pre-provision operating earnings and related metrics:

	For the Quarter Ended										For the Year Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
	(Dollars in thousands, except per share data)
Operating Earnings
Net income	$	24,882	$	31,001	$	27,202	$	24,156	$	3,499	$	107,241	$	108,261
Plus: Equity method investment write-down		—		—		—		—		29,417		—		29,417
Plus: FDIC special assessment		—		—		134		—		768		134		768
Plus: Severance payments¹		1,545		1,487		613		—		—		3,645		1,950
Plus: Loss on sale of debt securities AFS, net		4,397		—		—		6,304		—		10,701		5,321
Operating pre-tax income		30,824		32,488		27,949		30,460		33,684		121,721		145,717
Less: Tax impact of adjustments		1,248		307		166		1,323		2,059		3,044		3,603
Plus: Nonrecurring tax adjustments		193		—		527		—		—		720		—
Operating earnings	$	29,769	$	32,181	$	28,310	$	29,137	$	31,625	$	119,397	$	142,114

Weighted average diluted shares outstanding		55,237		54,932		54,823		54,842		54,691		54,958		54,596
Diluted EPS	$	0.45	$	0.56	$	0.50	$	0.44	$	0.06	$	1.95	$	1.98
Diluted operating EPS	$	0.54	$	0.59	$	0.52	$	0.53	$	0.58	$	2.17	$	2.60

¹ Severance payments relate to restructurings made during the periods disclosed.

	For the Quarter Ended															For the Year Ended
(Dollars in thousands)	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Pre-Tax, Pre-Provision Operating Earnings
Net Income	$	24,882		$	31,001		$	27,202		$	24,156		$	3,499		$	107,241		$	108,261
Plus: Provision for income taxes		8,222			8,067			8,221			7,237			6,004			31,747			36,023
Plus: Provision for credit losses and unfunded commitments		1,899			4,000			8,250			5,959			8,000			20,108			40,471
Plus: Severance payments		1,545			1,487			613			—			—			3,645			1,950
Plus: Loss on sale of AFS, net		4,397			—			—			6,304			—			10,701			5,321
Plus: Equity method investment write-down		—			—			—			—			29,417			—			29,417
Plus: FDIC special assessment		—			—			134			—			768			134			768
Net pre-tax, pre-provision operating earnings	$	40,945		$	44,555		$	44,420		$	43,656		$	47,688		$	173,576		$	222,211

Average total assets	$	12,750,972		$	12,861,918		$	12,578,706		$	12,336,042		$	12,306,634		$	12,632,863		$	12,282,747
Pre-tax, pre-provision operating return on average assets¹		1.28	%		1.38	%		1.42	%		1.42	%		1.54	%		1.37	%		1.81	%

Average loans	$	9,449,565		$	9,661,774		$	9,765,428		$	9,563,372		$	9,581,784		$	9,609,738		$	9,591,666
Pre-tax, pre-provision operating return on average loans¹		1.72	%		1.83	%		1.83	%		1.84	%		1.97	%		1.81	%		2.32	%

Average Total Assets	$	12,750,972		$	12,861,918		$	12,578,706		$	12,336,042		$	12,306,634		$	12,632,863		$	12,282,747
Return on average assets¹		0.78	%		0.96	%		0.87	%		0.79	%		0.11	%		0.85	%		0.88	%
Operating return on average assets¹		0.93			1.00			0.91			0.95			1.02			0.95			1.16

Operating earnings adjusted for amortization of core deposit intangibles
Operating earnings	$	29,769		$	32,181		$	28,310		$	29,137		$	31,625		$	119,397		$	142,114
Adjustments:
Plus: Amortization of core deposit intangibles		2,437			2,438			2,438			2,438			2,438			9,751			9,752
Less: Tax benefit at the statutory rate		512			512			512			512			512			2,048			2,048
Operating earnings adjusted for amortization of core deposit intangibles	$	31,694		$	34,107		$	30,236		$	31,063		$	33,551		$	127,100		$	149,818

Average Tangible Common Equity
Total average stockholders’ equity	$	1,604,335		$	1,583,401		$	1,541,609		$	1,533,868		$	1,510,286		$	1,565,957		$	1,501,525
Adjustments:
Less: Average goodwill		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)		(404,452	)
Less: Average core deposit intangibles		(20,342	)		(22,789	)		(25,218	)		(27,656	)		(30,093	)		(23,988	)		(33,718	)
Average tangible common equity	$	1,179,541		$	1,156,160		$	1,111,939		$	1,101,760		$	1,075,741		$	1,137,517		$	1,063,355
Operating return on average tangible common equity¹		10.69	%		11.74	%		10.94	%		11.34	%		12.37	%		11.17	%		14.09	%

Efficiency ratio		67.04	%		61.94	%		59.11	%		62.45	%		77.49	%		62.62	%		55.82	%
Operating efficiency ratio
Net interest income	$	96,141		$	100,062		$	96,236		$	92,806		$	95,533		$	385,245		$	399,114
Noninterest income (loss)		10,056			13,106			10,578			6,662			(17,792	)		40,402			19,105
Plus: Loss on sale of AFS, net		4,397			—			—			6,304			—			10,701			5,321
Plus: Equity method investment write-down		—			—			—			—			29,417			—			29,417
Operating noninterest income		14,453			13,106			10,578			12,966			11,625			51,103			53,843
Noninterest expense		71,194			70,100			63,141			62,116			60,238			266,551			233,464
Less: FDIC special assessment		—			—			134			—			768			134			768
Less: Severance payments		1,545			1,487			613			—			—			3,645			1,950
Operating noninterest expense	$	69,649		$	68,613		$	62,394		$	62,116		$	59,470		$	262,772		$	230,746
Operating efficiency ratio		62.98	%		60.63	%		58.41	%		58.73	%		55.50	%		60.22	%		50.94	%

¹ Annualized ratio for quarterly metrics.

The MIL Network –

January 29, 2025

MIL-OSI: Renasant Corporation Announces Earnings For the Fourth Quarter of 2024

Source: GlobeNewswire (MIL-OSI)

TUPELO, Miss., Jan. 28, 2025 (GLOBE NEWSWIRE) — Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the fourth quarter of 2024.

(Dollars in thousands, except earnings per share)	Three Months Ended							Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Dec 31, 2023			Dec 31, 2024		Dec 31, 2023
Net income and earnings per share:
Net income	$	44,747	$	72,455	$	28,124		$	195,457	$	144,678
After-tax gain on sale of insurance agency		—		38,951		—			38,951		—
After-tax loss on sale of securities (including impairments)		—		—		(17,859	)		—		(17,859	)
Basic EPS		0.70		1.18		0.50			3.29		2.58
Diluted EPS		0.70		1.18		0.50			3.27		2.56
Adjusted diluted EPS (Non-GAAP)⁽¹⁾		0.73		0.70		0.76			2.76		3.15
Impact to diluted EPS from after-tax gain on sale of insurance agency		—		0.63		—			0.65		—
Impact to diluted EPS from after-tax loss on sale of securities (including impairments)		—		—		—			—		(0.31	)

“The fourth quarter results marked the end to a successful year for Renasant. We announced a transformative merger with The First in July and, in the midst of diligently planning for a successful combination, our team maintained its focus on generating organic growth, disciplined pricing on both sides of the balance sheet and steady credit performance,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company.

Quarterly Highlights

Earnings

Net income for the fourth quarter of 2024 was $44.7 million; diluted EPS and adjusted diluted EPS (non-GAAP)⁽¹⁾ were $0.70 and $0.73, respectively
Net interest income (fully tax equivalent) for the fourth quarter of 2024 was $135.5 million, up $1.9 million on a linked quarter basis
For the fourth quarter of 2024, net interest margin was 3.36%, which was unchanged on a linked quarter basis
Cost of total deposits was 2.35% for the fourth quarter of 2024, down 16 basis points on a linked quarter basis
Noninterest income decreased $55.1 million on a linked quarter basis. The Company recognized a $53.3 million pre-tax gain on the insurance agency sale during the third quarter. Excluding the impact of this gain, noninterest income decreased $1.7 million from the third quarter
Mortgage banking income decreased $1.6 million on a linked quarter basis. The mortgage division generated $482.3 million in interest rate lock volume in the fourth quarter of 2024, down $61.3 million on a linked quarter basis. Gain on sale margin was 2.01% for the fourth quarter of 2024, up 45 basis points on a linked quarter basis
Noninterest expense decreased $7.2 million on a linked quarter basis. Merger and conversion expenses were $2.1 million for the fourth quarter of 2024, down from $11.3 million for the prior quarter

Balance Sheet

Loans increased $257.4 million on a linked quarter basis, representing 8.1% annualized net loan growth
Securities increased $41.8 million on a linked quarter basis. The Company purchased $113.6 million in securities during the fourth quarter, which was offset by cash flows related to principal payments, calls and maturities of $48.5 million and a negative fair market value adjustment in the Company’s available-for-sale portfolio of $24.3 million
Deposits at December 31, 2024 increased $62.9 million on a linked quarter basis. Brokered deposits outstanding at September 30, 2024 of $126.8 million matured or were called during the quarter. There were no outstanding brokered deposits at December 31, 2024. Noninterest bearing deposits decreased $125.8 million on a linked quarter basis and represented 23.4% of total deposits at December 31, 2024

Capital and Stock Repurchase Program

Book value per share and tangible book value per share (non-GAAP)⁽¹⁾ increased 0.7% and 1.3%, respectively, on a linked quarter basis
The Company has a $100.0 million stock repurchase program in effect through October 2025 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. There was no buyback activity during the fourth quarter of 2024

Credit Quality

The Company recorded a provision for credit losses of $2.6 million for the fourth quarter of 2024, compared to $0.9 million for the third quarter of 2024
The ratio of the allowance for credit losses on loans to total loans was 1.57% at December 31, 2024, down two basis points on a linked quarter basis
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 178.11% at December 31, 2024, compared to 168.07% at September 30, 2024
Net loan charge-offs for the fourth quarter of 2024 were $1.7 million, or 0.05% of average loans on an annualized basis
Nonperforming loans to total loans decreased to 0.88% at December 31, 2024 compared to 0.94% at September 30, 2024, and criticized loans (which include classified and Special Mention loans) to total loans decreased to 2.89% at December 31, 2024, compared to 3.02% at September 30, 2024

_{⁽¹⁾ This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.}

Income Statement

(Dollars in thousands, except per share data)	Three Months Ended														Twelve Months Ended
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023		Dec 31, 2024			Dec 31, 2023
Interest income
Loans held for investment	$	199,240		$	202,655		$	198,397		$	192,390		$	188,535	$	792,682		$	704,649
Loans held for sale		3,564			4,212			3,530			2,308			3,329		13,614			11,807
Securities		10,510			10,304			10,410			10,700			10,728		41,924			50,488
Other		12,030			11,872			7,874			7,781			7,839		39,557			30,375
Total interest income		225,344			229,043			220,211			213,179			210,431		887,777			797,319
Interest expense
Deposits		85,571			90,787			87,621			82,613			77,168		346,592			232,331
Borrowings		6,891			7,258			7,564			7,276			7,310		28,989			45,661
Total interest expense		92,462			98,045			95,185			89,889			84,478		375,581			277,992
Net interest income		132,882			130,998			125,026			123,290			125,953		512,196			519,327
Provision for credit losses
Provision for loan losses		3,100			1,210			4,300			2,638			2,518		11,248			18,793
Recovery of unfunded commitments		(500	)		(275	)		(1,000	)		(200	)		—		(1,975	)		(3,200	)
Total provision for credit losses		2,600			935			3,300			2,438			2,518		9,273			15,593
Net interest income after provision for credit losses		130,282			130,063			121,726			120,852			123,435		502,923			503,734
Noninterest income		34,218			89,299			38,762			41,381			20,356		203,660			113,075
Noninterest expense		114,747			121,983			111,976			112,912			111,880		461,618			439,622
Income before income taxes		49,753			97,379			48,512			49,321			31,911		244,965			177,187
Income taxes		5,006			24,924			9,666			9,912			3,787		49,508			32,509
Net income	$	44,747		$	72,455		$	38,846		$	39,409		$	28,124	$	195,457		$	144,678

Adjusted net income (non-GAAP)⁽¹⁾	$	46,458		$	42,960		$	38,846		$	36,572		$	42,887	$	165,066		$	177,657
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)⁽¹⁾	$	54,177		$	56,238		$	51,812		$	48,231		$	52,614	$	210,458		$	233,403

Basic earnings per share	$	0.70		$	1.18		$	0.69		$	0.70		$	0.50	$	3.29		$	2.58
Diluted earnings per share		0.70			1.18			0.69			0.70			0.50		3.27			2.56
Adjusted diluted earnings per share (non-GAAP)⁽¹⁾		0.73			0.70			0.69			0.65			0.76		2.76			3.15
Average basic shares outstanding		63,565,437			61,217,094			56,342,909			56,208,348			56,141,628		59,350,157			56,099,689
Average diluted shares outstanding		64,056,303			61,632,448			56,684,626			56,531,078			56,611,217		59,748,790			56,448,163
Cash dividends per common share	$	0.22		$	0.22		$	0.22		$	0.22		$	0.22	$	0.88		$	0.88

_{⁽¹⁾ This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.}

Performance Ratios

	Three Months Ended										Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Return on average assets	0.99	%	1.63	%	0.90	%	0.92	%	0.65	%	1.11	%	0.84	%
Adjusted return on average assets (non-GAAP)⁽¹⁾	1.03		0.97		0.90		0.86		0.99		0.94		1.03
Return on average tangible assets (non-GAAP)⁽¹⁾	1.07		1.75		0.98		1.00		0.71		1.20		0.92
Adjusted return on average tangible assets (non-GAAP)⁽¹⁾	1.11		1.05		0.98		0.93		1.08		1.02		1.12
Return on average equity	6.70		11.29		6.68		6.85		4.93		7.92		6.50
Adjusted return on average equity (non-GAAP)⁽¹⁾	6.96		6.69		6.68		6.36		7.53		6.69		7.99
Return on average tangible equity (non-GAAP)⁽¹⁾	10.97		18.83		12.04		12.45		9.26		13.63		12.29
Adjusted return on average tangible equity (non-GAAP)⁽¹⁾	11.38		11.26		12.04		11.58		13.94		11.55		15.02
Efficiency ratio (fully taxable equivalent)	67.61		54.73		67.31		67.52		75.11		63.57		68.33
Adjusted efficiency ratio (non-GAAP)⁽¹⁾	65.82		64.62		66.60		68.23		66.18		66.30		63.48
Dividend payout ratio	31.43		18.64		31.88		31.43		44.00		26.75		34.11

Capital and Balance Sheet Ratios

	As of
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Shares outstanding		63,565,690			63,564,028			56,367,924			56,304,860			56,142,207
Market value per share	$	35.75		$	32.50		$	30.54		$	31.32		$	33.68
Book value per share		42.13			41.82			41.77			41.25			40.92
Tangible book value per share (non-GAAP)⁽¹⁾		26.36			26.02			23.89			23.32			22.92
Shareholders’ equity to assets		14.85	%		14.80	%		13.45	%		13.39	%		13.23	%
Tangible common equity ratio (non-GAAP)⁽¹⁾		9.84			9.76			8.16			8.04			7.87
Leverage ratio		11.34			11.32			9.81			9.75			9.62
Common equity tier 1 capital ratio		12.72			12.88			10.75			10.59			10.52
Tier 1 risk-based capital ratio		13.49			13.67			11.53			11.37			11.30
Total risk-based capital ratio		17.07			17.32			15.15			15.00			14.93

_{⁽¹⁾ This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.}

Noninterest Income and Noninterest Expense

(Dollars in thousands)	Three Months Ended											Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023			Dec 31, 2024		Dec 31, 2023
Noninterest income
Service charges on deposit accounts	$	10,549	$	10,438	$	10,286	$	10,506	$	10,603		$	41,779	$	39,199
Fees and commissions		4,181		4,116		3,944		3,949		4,130			16,190		17,901
Insurance commissions		—		—		2,758		2,716		2,583			5,474		11,102
Wealth management revenue		6,371		5,835		5,684		5,669		5,668			23,559		22,132
Mortgage banking income		6,861		8,447		9,698		11,370		6,592			36,376		32,413
Gain on sale of insurance agency		—		53,349		—		—		—			53,349		—
Net losses on sales of securities (including impairments)		—		—		—		—		(19,352	)		—		(41,790	)
Gain on extinguishment of debt		—		—		—		56		620			56		620
BOLI income		3,317		2,858		2,701		2,691		2,589			11,567		10,463
Other		2,939		4,256		3,691		4,424		6,923			15,310		21,035
Total noninterest income	$	34,218	$	89,299	$	38,762	$	41,381	$	20,356		$	203,660	$	113,075
Noninterest expense
Salaries and employee benefits	$	70,260	$	71,307	$	70,731	$	71,470	$	71,841		$	283,768	$	281,768
Data processing		4,145		4,133		3,945		3,807		3,971			16,030		15,195
Net occupancy and equipment		11,312		11,415		11,844		11,389		11,653			45,960		46,471
Other real estate owned		590		56		105		107		306			858		267
Professional fees		2,686		3,189		3,195		3,348		2,854			12,418		13,671
Advertising and public relations		3,840		3,677		3,807		4,886		3,084			16,210		14,726
Intangible amortization		1,133		1,160		1,186		1,212		1,274			4,691		5,380
Communications		2,067		2,176		2,112		2,024		2,026			8,379		8,238
Merger and conversion related expenses		2,076		11,273		—		—		—			13,349		—
Other		16,638		13,597		15,051		14,669		14,871			59,955		53,906
Total noninterest expense	$	114,747	$	121,983	$	111,976	$	112,912	$	111,880		$	461,618	$	439,622

Mortgage Banking Income

(Dollars in thousands)	Three Months Ended										Twelve Months Ended
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
Gain on sales of loans, net	$	2,379	$	4,499	$	5,199	$	4,535	$	1,860	$	16,612	$	14,573
Fees, net		2,850		2,646		2,866		1,854		2,010		10,216		9,051
Mortgage servicing income, net		1,632		1,302		1,633		4,981		2,722		9,548		8,789
Total mortgage banking income	$	6,861	$	8,447	$	9,698	$	11,370	$	6,592	$	36,376	$	32,413

Balance Sheet

(Dollars in thousands)	As of
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Assets
Cash and cash equivalents	$	1,092,032		$	1,275,620		$	851,906		$	844,400		$	801,351
Securities held to maturity, at amortized cost		1,126,112			1,150,531			1,174,663			1,199,111			1,221,464
Securities available for sale, at fair value		831,013			764,844			749,685			764,486			923,279
Loans held for sale, at fair value		246,171			291,735			266,406			191,440			179,756
Loans held for investment		12,885,020			12,627,648			12,604,755			12,500,525			12,351,230
Allowance for credit losses on loans		(201,756	)		(200,378	)		(199,871	)		(201,052	)		(198,578	)
Loans, net		12,683,264			12,427,270			12,404,884			12,299,473			12,152,652
Premises and equipment, net		279,796			280,550			280,966			282,193			283,195
Other real estate owned		8,673			9,136			7,366			9,142			9,622
Goodwill and other intangibles		1,003,003			1,004,136			1,008,062			1,009,248			1,010,460
Bank-owned life insurance		391,810			389,138			387,791			385,186			382,584
Mortgage servicing rights		72,991			71,990			72,092			71,596			91,688
Other assets		300,003			293,890			306,570			289,466			304,484
Total assets	$	18,034,868		$	17,958,840		$	17,510,391		$	17,345,741		$	17,360,535

Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing	$	3,403,981		$	3,529,801		$	3,539,453		$	3,516,164		$	3,583,675
Interest-bearing		11,168,631			10,979,950			10,715,760			10,720,999			10,493,110
Total deposits		14,572,612			14,509,751			14,255,213			14,237,163			14,076,785
Short-term borrowings		108,018			108,732			232,741			108,121			307,577
Long-term debt		430,614			433,177			428,677			428,047			429,400
Other liabilities		245,306			249,102			239,059			250,060			249,390
Total liabilities		15,356,550			15,300,762			15,155,690			15,023,391			15,063,152

Shareholders’ equity:
Common stock		332,421			332,421			296,483			296,483			296,483
Treasury stock		(97,196	)		(97,251	)		(97,534	)		(99,683	)		(105,249	)
Additional paid-in capital		1,491,847			1,488,678			1,304,782			1,303,613			1,308,281
Retained earnings		1,093,854			1,063,324			1,005,086			978,880			952,124
Accumulated other comprehensive loss		(142,608	)		(129,094	)		(154,116	)		(156,943	)		(154,256	)
Total shareholders’ equity		2,678,318			2,658,078			2,354,701			2,322,350			2,297,383
Total liabilities and shareholders’ equity	$	18,034,868		$	17,958,840		$	17,510,391		$	17,345,741		$	17,360,535

Net Interest Income and Net Interest Margin

(Dollars in thousands)	Three Months Ended
	December 31, 2024						September 30, 2024						December 31, 2023
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Loans held for investment	$	12,746,941	$	201,562	6.29	%	$	12,584,104	$	204,935	6.47	%	$	12,249,429	$	190,857	6.18	%
Loans held for sale		250,812		3,564	5.69	%		272,110		4,212	6.19	%		199,510		3,329	6.68	%
Taxable securities		1,784,167		9,408	2.11	%		1,794,421		9,212	2.05	%		2,050,175		9,490	1.85	%
Tax-exempt securities⁽¹⁾		261,679		1,400	2.14	%		262,621		1,390	2.12	%		282,698		1,558	2.20	%
Total securities		2,045,846		10,808	2.11	%		2,057,042		10,602	2.06	%		2,332,873		11,048	1.89	%
Interest-bearing balances with banks		1,025,294		12,030	4.67	%		894,313		11,872	5.28	%		552,301		7,839	5.63	%
Total interest-earning assets		16,068,893		227,964	5.65	%		15,807,569		231,621	5.82	%		15,334,113		213,073	5.52	%
Cash and due from banks		188,493						189,425						180,609
Intangible assets		1,003,551						1,004,701						1,011,130
Other assets		682,211						679,969						669,988
Total assets	$	17,943,148					$	17,681,664					$	17,195,840
Interest-bearing liabilities:
Interest-bearing demand⁽²⁾	$	7,629,685	$	57,605	3.00	%	$	7,333,508	$	60,326	3.26	%	$	6,721,053	$	47,783	2.82	%
Savings deposits		804,132		706	0.35	%		815,545		729	0.36	%		888,692		765	0.34	%
Brokered deposits		60,298		1,013	6.68	%		150,991		1,998	5.25	%		632,704		8,594	5.39	%
Time deposits		2,512,097		26,247	4.16	%		2,546,860		27,734	4.33	%		2,185,737		20,026	3.63	%
Total interest-bearing deposits		11,006,212		85,571	3.09	%		10,846,904		90,787	3.32	%		10,428,186		77,168	2.94	%
Borrowed funds		556,966		6,891	4.94	%		562,146		7,258	5.14	%		564,715		7,310	5.16	%
Total interest-bearing liabilities		11,563,178		92,462	3.18	%		11,409,050		98,045	3.41	%		10,992,901		84,478	3.05	%
Noninterest-bearing deposits		3,502,931						3,509,266						3,703,050
Other liabilities		220,154						209,762						238,864
Shareholders’ equity		2,656,885						2,553,586						2,261,025
Total liabilities and shareholders’ equity	$	17,943,148					$	17,681,664					$	17,195,840
Net interest income/ net interest margin			$	135,502	3.36	%			$	133,576	3.36	%			$	128,595	3.33	%
Cost of funding					2.44	%					2.61	%					2.28	%
Cost of total deposits					2.35	%					2.51	%					2.17	%

_{⁽¹⁾ U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.}
_{⁽²⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.}

Net Interest Income and Net Interest Margin, continued

(Dollars in thousands)	Twelve Months Ended
	December 31, 2024						December 31, 2023
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Loans held for investment	$	12,579,143	$	801,807	6.37	%	$	11,963,141	$	713,897	5.97	%
Loans held for sale		224,734		13,614	6.06	%		181,253		11,807	6.51	%
Taxable securities⁽¹⁾		1,825,404		37,383	2.05	%		2,313,874		44,619	1.93	%
Tax-exempt securities		264,615		5,746	2.17	%		332,749		7,634	2.29	%
Total securities		2,090,019		43,129	2.06	%		2,646,623		52,253	1.97	%
Interest-bearing balances with banks		772,274		39,557	5.12	%		568,155		30,375	5.35	%
Total interest-earning assets		15,666,170		898,107	5.73	%		15,359,172		808,332	5.26	%
Cash and due from banks		188,487						187,127
Intangible assets		1,006,665						1,012,239
Other assets		691,373						673,345
Total assets	$	17,552,695					$	17,231,883
Interest-bearing liabilities:
Interest-bearing demand⁽²⁾	$	7,254,646	$	226,563	3.12	%	$	6,357,753	$	138,730	2.18	%
Savings deposits		829,818		2,894	0.35	%		971,522		3,197	0.33	%
Brokered deposits		237,164		12,942	5.46	%		697,699		36,039	5.17	%
Time deposits		2,466,906		104,193	4.22	%		1,874,224		54,365	2.90	%
Total interest-bearing deposits		10,788,534		346,592	3.21	%		9,901,198		232,331	2.35	%
Borrowed funds		566,332		28,989	5.12	%		910,080		45,661	5.02	%
Total interest-bearing liabilities		11,354,866		375,581	3.31	%		10,811,278		277,992	2.57	%
Noninterest-bearing deposits		3,509,958						3,979,951
Other liabilities		221,487						216,148
Shareholders’ equity		2,466,384						2,224,506
Total liabilities and shareholders’ equity	$	17,552,695					$	17,231,883
Net interest income/ net interest margin			$	522,526	3.34	%			$	530,340	3.45	%
Cost of funding					2.53	%					1.88	%
Cost of total deposits					2.42	%					1.67	%

_{⁽¹⁾ U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.}
_{⁽²⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.}

Supplemental Margin Information

(Dollars in thousands)	Three Months Ended									Twelve Months Ended
	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Earning asset mix:
Loans held for investment		79.33	%		79.61	%		79.88	%		80.29	%		77.89	%
Loans held for sale		1.56			1.72			1.30			1.43			1.18
Securities		12.73			13.01			15.21			13.34			17.23
Interest-bearing balances with banks		6.38			5.66			3.61			4.94			3.70
Total		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Funding sources mix:
Noninterest-bearing demand		23.25	%		23.52	%		25.20	%		23.61	%		26.91	%
Interest-bearing demand⁽¹⁾		50.64			49.16			45.73			48.80			42.98
Savings		5.34			5.47			6.05			5.58			6.57
Brokered deposits		0.40			1.01			4.31			1.60			4.72
Time deposits		16.67			17.07			14.87			16.60			12.67
Borrowed funds		3.70			3.77			3.84			3.81			6.15
Total		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Net interest income collected on problem loans	$	151		$	642		$	283		$	770		$	219
Total accretion on purchased loans		616			1,089			1,117			3,402			4,166
Total impact on net interest income	$	767		$	1,731		$	1,400		$	4,172		$	4,385
Impact on net interest margin		0.02	%		0.04	%		0.04	%		0.03	%		0.03	%
Impact on loan yield		0.02			0.05			0.05			0.03	%		0.04	%

_{⁽¹⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.}

Loan Portfolio

(Dollars in thousands)	As of
	Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023
Loan Portfolio:
Commercial, financial, agricultural	$	1,885,817	$	1,804,961	$	1,847,762	$	1,869,408	$	1,871,821
Lease financing		90,591		98,159		102,996		107,474		116,020
Real estate – construction		1,093,653		1,198,838		1,355,425		1,243,535		1,333,397
Real estate – 1-4 family mortgages		3,488,877		3,440,038		3,435,818		3,429,286		3,439,919
Real estate – commercial mortgages		6,236,068		5,995,152		5,766,478		5,753,230		5,486,550
Installment loans to individuals		90,014		90,500		96,276		97,592		103,523
Total loans	$	12,885,020	$	12,627,648	$	12,604,755	$	12,500,525	$	12,351,230

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands)	As of
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Nonperforming Assets:
Nonaccruing loans	$	110,811		$	113,872		$	97,795		$	73,774		$	68,816
Loans 90 days or more past due		2,464			5,351			240			451			554
Total nonperforming loans		113,275			119,223			98,035			74,225			69,370
Other real estate owned		8,673			9,136			7,366			9,142			9,622
Total nonperforming assets	$	121,948		$	128,359		$	105,401		$	83,367		$	78,992

Criticized Loans
Classified loans	$	241,708		$	218,135		$	191,595		$	206,502		$	166,893
Special Mention loans		130,882			163,804			138,343			138,366			99,699
Criticized loans⁽¹⁾	$	372,590		$	381,939		$	329,938		$	344,868		$	266,592

Allowance for credit losses on loans	$	201,756		$	200,378		$	199,871		$	201,052		$	198,578
Net loan charge-offs	$	1,722		$	703		$	5,481		$	164		$	1,713
Annualized net loan charge-offs / average loans		0.05	%		0.02	%		0.18	%		0.01	%		0.06	%
Nonperforming loans / total loans		0.88			0.94			0.78			0.59			0.56
Nonperforming assets / total assets		0.68			0.71			0.60			0.48			0.46
Allowance for credit losses on loans / total loans		1.57			1.59			1.59			1.61			1.61
Allowance for credit losses on loans / nonperforming loans		178.11			168.07			203.88			270.87			286.26
Criticized loans / total loans		2.89			3.02			2.62			2.76			2.16

_{⁽¹⁾ Criticized loans include classified and Special Mention loans.}

CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, January 29, 2025.

The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=8ssY2K7l. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2024 Fourth Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on www.renasant.com after the call and will remain accessible for one year. A replay can be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 8623913 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until February 12, 2025.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 120-year-old financial services institution. Renasant has assets of approximately $18.0 billion and operates 186 banking, lending, mortgage and wealth management offices throughout the Southeast as well as offering factoring and asset-based lending on a nationwide basis.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute “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 preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “focus,” “possible,” “may increase,” “may fluctuate,” “will likely result,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would” and “could,” are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

Important factors currently known to management that could cause the Company’s actual results to differ materially from those in forward-looking statements include the following: (i) the Company’s ability to efficiently integrate acquisitions (including its recently-announced acquisition of The First Bancshares, Inc.) into its operations, retain the customers of these businesses, grow the acquired operations and realize the cost savings expected from an acquisition to the extent and in the timeframe anticipated by management (including the possibility that such cost savings will not be realized when expected, or at all, as a result of the impact of, or challenges arising from, the integration of the acquired assets and assumed liabilities into the Company, potential adverse reactions or changes to business or employee relationships, or as a result of other unexpected factors or events); (ii) potential exposure to unknown or contingent risks and liabilities the Company has acquired, or may acquire, or target for acquisition, including in connection with the proposed merger with The First Bancshares, Inc.; (iii) the effect of economic conditions and interest rates on a national, regional or international basis; (iv) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (v) competitive pressures in the consumer finance, commercial finance, financial services, asset management, retail banking, factoring and mortgage lending and auto lending industries; (vi) the financial resources of, and products available from, competitors; (vii) changes in laws and regulations as well as changes in accounting standards; (viii) changes in policy by regulatory agencies or increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of the Company’s proposed merger with The First Bancshares, Inc.; (ix) changes in the securities and foreign exchange markets; (x) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xi) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of the Company’s investment securities portfolio; (xii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiii) changes in the sources and costs of the capital the Company uses to make loans and otherwise fund the Company’s operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (xiv) general economic, market or business conditions, including the impact of inflation; (xv) changes in demand for loan and deposit products and other financial services; (xvi) concentrations of credit or deposit exposure; (xvii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xviii) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xix) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xx) geopolitical conditions, including acts or threats of terrorism or actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; (xxi) the impact, extent and timing of technological changes; and (xxii) other circumstances, many of which are beyond management’s control.

Management believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company’s filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov.

The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

NON-GAAP FINANCIAL MEASURES:

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, namely, (i) adjusted loan yield, (ii) adjusted net interest income and margin, (iii) pre-provision net revenue (including on an as-adjusted basis), (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) the adjusted return on average assets and on average equity and certain other performance ratios (namely, the ratio of pre-provision net revenue to average assets and the return on average tangible assets and on average tangible common equity (including each of the foregoing on an as-adjusted basis)), and (ix) the adjusted efficiency ratio.

These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, including related amortization, and/or certain gains or charges (such as, for the fourth quarter of 2024, merger and conversion expenses and the gain on the sale of mortgage servicing rights), with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption “Non-GAAP Reconciliations”.

None of the non-GAAP financial information that the Company has included in this release or the accompanying presentation slides are intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company’s calculations may not be comparable to similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

Non-GAAP Reconciliations

(Dollars in thousands, except per share data)	Three Months Ended															Twelve Months Ended
	Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Dec 31, 2024			Dec 31, 2023
Adjusted Pre-Provision Net Revenue (“PPNR”)
Net income (GAAP)	$	44,747		$	72,455		$	38,846		$	39,409		$	28,124		$	195,457		$	144,678
Income taxes		5,006			24,924			9,666			9,912			3,787			49,508			32,509
Provision for credit losses (including unfunded commitments)		2,600			935			3,300			2,438			2,518			9,273			15,593
Pre-provision net revenue (non-GAAP)	$	52,353		$	98,314		$	51,812		$	51,759		$	34,429		$	254,238		$	192,780
Merger and conversion expense		2,076			11,273			—			—			—			13,349			—
Gain on extinguishment of debt		—			—			—			(56	)		(620	)		(56	)		(620	)
Gain on sales of MSR		(252	)		—			—			(3,472	)		(547	)		(3,724	)		(547	)
Gain on sale of insurance agency		—			(53,349	)		—			—			—			(53,349	)		—
Losses on sales of securities (including impairments)		—			—			—			—			19,352			—			41,790
Adjusted pre-provision net revenue (non-GAAP)	$	54,177		$	56,238		$	51,812		$	48,231		$	52,614		$	210,458		$	233,403

Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)	$	44,747		$	72,455		$	38,846		$	39,409		$	28,124		$	195,457		$	144,678
Amortization of intangibles		1,133			1,160			1,186			1,212			1,274			4,691			5,380
Tax effect of adjustments noted above⁽¹⁾		(283	)		(296	)		(233	)		(237	)		(240	)		(1,173	)		(1,012	)
Tangible net income (non-GAAP)	$	45,597		$	73,319		$	39,799		$	40,384		$	29,158		$	198,975		$	149,046

Net income (GAAP)	$	44,747		$	72,455		$	38,846		$	39,409		$	28,124		$	195,457		$	144,678
Merger and conversion expense		2,076			11,273			—			—			—			13,349			—
Gain on extinguishment of debt		—			—			—			(56	)		(620	)		(56	)		(620	)
Gain on sales of MSR		(252	)		—			—			(3,472	)		(547	)		(3,724	)		(547	)
Gain on sale of insurance agency		—			(53,349	)		—			—			—			(53,349	)		—
Losses on sales of securities (including impairments)		—			—			—			—			19,352			—			41,790
Tax effect of adjustments noted above⁽¹⁾		(113	)		12,581			—			691			(3,422	)		13,389			(7,644	)
Adjusted net income (non-GAAP)	$	46,458		$	42,960		$	38,846		$	36,572		$	42,887		$	165,066		$	177,657
Amortization of intangibles		1,133			1,160			1,186			1,212			1,274			4,691			5,380
Tax effect of adjustments noted above⁽¹⁾		(283	)		(296	)		(233	)		(237	)		(240	)		(1,173	)		(1,012	)
Adjusted tangible net income (non-GAAP)	$	47,308		$	43,824		$	39,799		$	37,547		$	43,921		$	168,584		$	182,025
Tangible Assets and Tangible Shareholders’ Equity
Average shareholders’ equity (GAAP)	$	2,656,885		$	2,553,586		$	2,337,731		$	2,314,281		$	2,261,025		$	2,466,384		$	2,224,506
Average intangible assets		(1,003,551	)		(1,004,701	)		(1,008,638	)		(1,009,825	)		(1,011,130	)		(1,006,665	)		(1,012,239	)
Average tangible shareholders’ equity (non-GAAP)	$	1,653,334		$	1,548,885		$	1,329,093		$	1,304,456		$	1,249,895		$	1,459,719		$	1,212,267

Average assets (GAAP)	$	17,943,148		$	17,681,664		$	17,371,369		$	17,203,013		$	17,195,840		$	17,552,695		$	17,231,883
Average intangible assets		(1,003,551	)		(1,004,701	)		(1,008,638	)		(1,009,825	)		(1,011,130	)		(1,006,665	)		(1,012,239	)
Average tangible assets (non-GAAP)	$	16,939,597		$	16,676,963		$	16,362,731		$	16,193,188		$	16,184,710		$	16,546,030		$	16,219,644

Shareholders’ equity (GAAP)	$	2,678,318		$	2,658,078		$	2,354,701		$	2,322,350		$	2,297,383		$	2,678,318		$	2,297,383
Intangible assets		(1,003,003	)		(1,004,136	)		(1,008,062	)		(1,009,248	)		(1,010,460	)		(1,003,003	)		(1,010,460	)
Tangible shareholders’ equity (non-GAAP)	$	1,675,315		$	1,653,942		$	1,346,639		$	1,313,102		$	1,286,923		$	1,675,315		$	1,286,923

Total assets (GAAP)	$	18,034,868		$	17,958,840		$	17,510,391		$	17,345,741		$	17,360,535		$	18,034,868		$	17,360,535
Intangible assets		(1,003,003	)		(1,004,136	)		(1,008,062	)		(1,009,248	)		(1,010,460	)		(1,003,003	)		(1,010,460	)
Total tangible assets (non-GAAP)	$	17,031,865		$	16,954,704		$	16,502,329		$	16,336,493		$	16,350,075		$	17,031,865		$	16,350,075

Adjusted Performance Ratios
Return on average assets (GAAP)		0.99	%		1.63	%		0.90	%		0.92	%		0.65	%		1.11	%		0.84	%
Adjusted return on average assets (non-GAAP)		1.03			0.97			0.90			0.86			0.99			0.94			1.03
Return on average tangible assets (non-GAAP)		1.07			1.75			0.98			1.00			0.71			1.20			0.92
Pre-provision net revenue to average assets (non-GAAP)		1.16			2.21			1.20			1.21			0.79			1.45			1.12
Adjusted pre-provision net revenue to average assets (non-GAAP)		1.20			1.27			1.20			1.13			1.21			1.20			1.35
Adjusted return on average tangible assets (non-GAAP)		1.11			1.05			0.98			0.93			1.08			1.02			1.12
Return on average equity (GAAP)		6.70			11.29			6.68			6.85			4.93			7.92			6.50
Adjusted return on average equity (non-GAAP)		6.96			6.69			6.68			6.36			7.53			6.69			7.99
Return on average tangible equity (non-GAAP)		10.97			18.83			12.04			12.45			9.26			13.63			12.29
Adjusted return on average tangible equity (non-GAAP)		11.38			11.26			12.04			11.58			13.94			11.55			15.02

Adjusted Diluted Earnings Per Share
Average diluted shares outstanding		64,056,303			61,632,448			56,684,626			56,531,078			56,611,217			59,748,790			56,448,163

Diluted earnings per share (GAAP)	$	0.70		$	1.18		$	0.69		$	0.70		$	0.50		$	3.27		$	2.56
Adjusted diluted earnings per share (non-GAAP)	$	0.73		$	0.70		$	0.69		$	0.65		$	0.76		$	2.76		$	3.15

Tangible Book Value Per Share
Shares outstanding		63,565,690			63,564,028			56,367,924			56,304,860			56,142,207			63,565,690			56,142,207

Book value per share (GAAP)	$	42.13		$	41.82		$	41.77		$	41.25		$	40.92		$	42.13		$	40.92
Tangible book value per share (non-GAAP)	$	26.36		$	26.02		$	23.89		$	23.32		$	22.92		$	26.36		$	22.92

Tangible Common Equity Ratio
Shareholders’ equity to assets (GAAP)		14.85	%		14.80	%		13.45	%		13.39	%		13.23	%		14.85	%		13.23	%
Tangible common equity ratio (non-GAAP)		9.84	%		9.76	%		8.16	%		8.04	%		7.87	%		9.84	%		7.87	%
Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)	$	135,502		$	133,576		$	127,598		$	125,850		$	128,595		$	522,526		$	530,340

Total noninterest income (GAAP)	$	34,218		$	89,299		$	38,762		$	41,381		$	20,356		$	203,660		$	113,075
Gain on sales of MSR		(252	)		—			—			(3,472	)		(547	)		(3,724	)		(547	)
Gain on extinguishment of debt		—			—			—			(56	)		(620	)		(56	)		(620	)
Gain on sale of insurance agency		—			(53,349	)		—			—			—			53,349			—
Losses on sales of securities (including impairments)		—			—			—			—			19,352			—			41,790
Total adjusted noninterest income (non-GAAP)	$	33,966		$	35,950		$	38,762		$	37,853		$	38,541		$	146,531		$	153,698

Noninterest expense (GAAP)	$	114,747		$	121,983		$	111,976		$	112,912		$	111,880		$	461,618		$	439,622
Amortization of intangibles		(1,133	)		(1,160	)		(1,186	)		(1,212	)		(1,274	)		(4,691	)		(5,380	)
Merger and conversion expense		(2,076	)		(11,273	)		—			—			—			(13,349	)		—
Total adjusted noninterest expense (non-GAAP)	$	111,538		$	109,550		$	110,790		$	111,700		$	110,606		$	443,578		$	434,242

Efficiency ratio (GAAP)		67.61	%		54.73	%		67.31	%		67.52	%		75.11	%		63.57	%		68.33	%
Adjusted efficiency ratio (non-GAAP)		65.82	%		64.62	%		66.60	%		68.23	%		66.18	%		66.30	%		63.48	%

Adjusted Net Interest Income and Adjusted Net Interest Margin
Net interest income (FTE) (GAAP)	$	135,502		$	133,576		$	127,598		$	125,850		$	128,595		$	522,526		$	530,340
Net interest income collected on problem loans		(151	)		(642	)		146			(123	)		(283	)		(770	)		(219	)
Accretion recognized on purchased loans		(616	)		(1,089	)		(897	)		(800	)		(1,117	)		(3,402	)		(4,166	)
Adjustments to net interest income	$	(767	)	$	(1,731	)	$	(751	)	$	(923	)	$	(1,400	)	$	(4,172	)	$	(4,385	)
Adjusted net interest income (FTE) (non-GAAP)	$	134,735		$	131,845		$	126,847		$	124,927		$	127,195		$	518,354		$	525,955

Net interest margin (GAAP)		3.36	%		3.36	%		3.31	%		3.30	%		3.33	%		3.34	%		3.45	%
Adjusted net interest margin (non-GAAP)		3.34	%		3.32	%		3.29	%		3.28	%		3.29	%		3.31	%		3.42	%

Adjusted Loan Yield
Loan interest income (FTE) (GAAP)	$	201,562		$	204,935		$	200,670		$	194,640		$	190,857		$	801,807		$	713,897
Net interest income collected on problem loans		(151	)		(642	)		146			(123	)		(283	)		(770	)		(219	)
Accretion recognized on purchased loans		(616	)		(1,089	)		(897	)		(800	)		(1,117	)		(3,402	)		(4,166	)
Adjusted loan interest income (FTE) (non-GAAP)	$	200,795		$	203,204		$	199,919		$	193,717		$	189,457		$	797,635		$	709,512

Loan yield (GAAP)		6.29	%		6.47	%		6.41	%		6.30	%		6.18	%		6.37	%		5.97	%
Adjusted loan yield (non-GAAP)		6.27	%		6.41	%		6.38	%		6.27	%		6.14	%		6.34	%		5.93	%

_{⁽¹⁾ Tax effect is calculated based on the respective legal entity’s appropriate federal and state tax rates (as applicable) for the period, and includes the estimated impact of both current and deferred tax expense. The tax effect of the discrete gain on sale of insurance agency was calculated based on an estimated tax rate of 27.0%.}

Contacts:	For Media:	For Financials:
	John S. Oxford	James C. Mabry IV
	Senior Vice President	Executive Vice President
	Chief Marketing Officer	Chief Financial Officer
	(662) 680-1219	(662) 680-1281

The MIL Network –

January 29, 2025

MIL-OSI: Dime Announces Continued Partnership with Island Harvest in 2025

Source: GlobeNewswire (MIL-OSI)

HAUPPAUGE, N.Y., Jan. 28, 2025 (GLOBE NEWSWIRE) — Dime Community Bancshares, Inc. (Nasdaq: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”) today announced that it will continue its role as a partner with Island Harvest for the 4^th consecutive year. Island Harvest is Long Island’s leading hunger-relief organization.

ABOUT DIME COMMUNITY BANCSHARES, INC.

Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $14 billion in assets and the number one deposit market share among community banks on Greater Long Island ⁽¹⁾.

Dime Community Bancshares, Inc.
Investor Relations Contact:
Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
Phone: 718-782-6200; Ext. 5909
Email: avinash.reddy@dime.com

¹ Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

The MIL Network –

January 29, 2025

MIL-OSI: Heartland BancCorp Earns $5.7 Million, or $2.63 Per Diluted Share, in the Fourth Quarter of 2024, and a Record $20.3 Million, or $9.75 Per Diluted Share, for the Year

Source: GlobeNewswire (MIL-OSI)

WHITEHALL, Ohio, Jan. 28, 2025 (GLOBE NEWSWIRE) — Heartland BancCorp (“Heartland” and “the Company”) (OTCQX: HLAN), parent company of Heartland Bank (“Bank”), today reported net income increased 7.2% to $5.7 million, or $2.63 per diluted share, in the fourth quarter of 2024, compared to $5.3 million, or $2.61 per diluted share, in the fourth quarter of 2023, and increased 28.0% compared to $4.4 million, or $2.12 per diluted share, in the preceding quarter. For the year 2024, net income increased 3.8% to a record $20.3 million, or $9.75 per diluted share, compared to $19.5 million, or $9.62 per diluted share, in 2023.

On July 29, 2024, Heartland announced that it had entered into a definitive merger agreement with German American Bancorp (“German American”). Upon completion of the transaction, Heartland’s subsidiary bank, Heartland Bank, will be merged into German American’s subsidiary bank, German American Bank, and operate under a co-branded name within the Ohio markets.

With the shareholders of Heartland and German American having each approved the Merger at special meetings held on November 19, 2024, Heartland and German American anticipate that the Merger will become effective as of February 1, 2025, subject to satisfaction of certain customary closing conditions contained in the Merger Agreement.

“Heartland produced strong net income for the fourth quarter, and record net income for the year, as we continue to deliver value to our clients and expand our market outreach,” stated G. Scott McComb, Chairman, President and Chief Executive Officer. “Our record earnings in 2024 were fueled by moderate loan growth and strong deposit growth generated in our Columbus and Greater Cincinnati market footprint, and our future growth opportunities will only be enhanced by our pending merger with German American. This strategic partnership allows us to partner with another like-minded, larger community bank that enables us to continue our strong brand and growth trajectory within the markets we serve. Strategically and culturally, Heartland and German American are exceptionally well-aligned with a strong commitment to the community banking business model. That model is centered on delivering an exceptional customer experience and the willingness to invest in local communities that Ohio has come to know and love from Heartland. I would like to thank our dedicated team of associates for all they do to support our loyal clients and communities as we look forward to continued success in 2025.”

Fourth Quarter 2024 Financial Highlights (at or for the three months ended December 31, 2024)

Net income was $5.7 million, or $2.63 per diluted share, compared to $5.3 million, or $2.61 per diluted share, in the fourth quarter of 2023.
Heartland recorded no provision for credit losses during the fourth quarter of 2024, compared to $550,000 for the fourth quarter a year ago.
Net interest margin was 3.19%, compared to 3.27% in the preceding quarter and 3.49% in the fourth quarter a year ago.
Fourth quarter revenues (net interest income plus noninterest income) were $18.5 million, compared to $18.6 million in the fourth quarter a year ago.
Annualized return on average assets was 1.14%, compared to 1.13% in the fourth quarter of 2023.
Annualized return on average tangible common equity was 13.90%, compared to 15.05% in the fourth quarter a year ago.
Net loans increased $5.6 million during the quarter to $1.54 billion at December 31, 2024, compared to three months earlier.
Demand deposits increased 2.8% during the quarter to $443.8 million, compared to $431.6 million three months earlier.
Credit quality remains strong with nonperforming loans to gross loans of 0.54% and nonperforming assets to total assets of 0.43% at December 31, 2024.
Tangible book value was $80.02 per share at December 31, 2024, compared to $74.23 per share a year ago.
Paid a quarterly cash dividend of $0.759 per share on December 30, 2024.

2024 Full Year Financial Highlights (at or for the twelve months ended December 31, 2024)

Net income for 2024 increased 3.8% to a record $20.3 million, compared to $19.5 million in 2023.
Net interest margin was 3.28% for the year, compared to 3.62% for 2023.
Annualized return on average assets was 1.06% for 2024, compared to 1.09% for 2023.
Annualized return on average tangible equity was 13.02% for 2024, compared to 14.15% for 2023.
Net loans increased $10.2 million year-over-year to $1.54 billion, compared to $1.53 billion a year ago.
Total deposits increased $108.1 million, or 6.6%, to $1.75 billion, compared to $1.64 billion a year ago.

Balance Sheet Review
Assets
Total assets increased 4.7% to $1.97 billion at December 31, 2024, compared to $1.88 billion a year earlier, and increased 1.6% compared to three months earlier. Heartland’s loan-to-deposit ratio was 88.0% at December 31, 2024, compared to 90.0% at September 30, 2024, and 93.2% at December 31, 2023.

Securities increased 5.3% to $222.4 million at December 31, 2024, compared to $211.1 million a year earlier, and decreased 3.3% compared to $229.9 million three months earlier. Securities comprise 11.3% of total assets at December 31, 2024, compared to 11.8% three months earlier and 11.2% a year ago.

Average earning assets increased to $1.87 billion in the fourth quarter of 2024, compared to $1.82 billion in the third quarter of 2024, and $1.75 billion in the fourth quarter of 2023. The average yield on interest-earning assets was 5.82% in the fourth quarter of 2024, down 13 basis points from 5.95% in the preceding quarter, and up 11 basis points from 5.71% in the fourth quarter a year ago.

Loan Portfolio
“Loan growth was muted during the fourth quarter, as we remain disciplined with new loan pricing amid stiff competition in our markets,” said Ben Babcanec, EVP and Chief Operating Officer.

Net loans totaled $1.54 billion at December 31, 2024, and increased modestly compared to $1.53 billion at September 30, 2024, and $1.52 billion at December 31, 2023. Commercial loans increased 7.8% from year ago levels to $186.2 million and comprise 11.9% of the total loan portfolio at December 31, 2024. Owner occupied commercial real estate loans (CRE) decreased 7.5% to $273.8 million at December 31, 2024, compared to a year ago, and comprise 17.6% of the total loan portfolio. Nonowner occupied CRE loans increased modestly to $503.2 million, compared to a year ago, and comprise 32.3% of the total loan portfolio at December 31, 2024. 1-4 family residential real estate loans increased 1.0% from year-ago levels to $513.2 million and represent 32.9% of total loans. Home equity loans increased 25.9% from year-ago levels to $65.1 million and represent 4.2% of total loans, while consumer loans decreased 5.6% from year-ago levels to $17.9 million and represent 1.1% of the total loan portfolio at December 31, 2024.

Deposits
Total deposits were $1.75 billion at December 31, 2024, a $45.0 million, or 2.6% increase, compared to $1.71 billion at September 30, 2024, and a $108.1 million, or 6.6% increase, compared to $1.64 billion at December 31, 2023. “Average deposits increased $61.6 million, or 3.6%, to $1.75 billion in the fourth quarter of 2024 compared to the preceding quarter, with good growth in all deposit categories,” said Babcanec.

At December 31, 2024, noninterest bearing demand deposit accounts decreased 9.0% compared to a year ago and represent 25.3% of total deposits; savings, NOW and money market accounts remained relatively unchanged compared to a year ago and represent 40.7% of total deposits; and CDs increased 33.8% compared to a year ago and comprise 33.9% of total deposits. The average cost of deposits was 2.73% in the fourth quarter of 2024, compared to 2.75% in the third quarter of 2024 and 2.21% in the fourth quarter of 2023.

Shareholders’ Equity
Shareholders’ equity was $175.4 million at December 31, 2024, compared to $175.9 million three months earlier and increased 7.9% compared to $162.5 million a year earlier. At December 31, 2024, Heartland’s tangible book value was $80.02 per share compared to $80.61 at September 30, 2024, and $74.23 at December 31, 2023.

Heartland continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with tangible equity to tangible assets of 8.30% at December 31, 2024, compared to 8.46% at September 30, 2024, and 8.00% at December 31, 2023.

Operating Results
In the fourth quarter of 2024, Heartland generated a ROAA of 1.14% and a ROATCE of 13.90%, compared to 0.91% and 11.10%, respectively, in the third quarter of 2024 and 1.13% and 15.05%, respectively, in the fourth quarter a year ago.

Net Interest Income/Net Interest Margin
Net interest income, before the provision for credit losses, decreased 2.5% to $15.0 million in the fourth quarter of 2024, compared to $15.4 million in the fourth quarter a year ago, and increased modestly compared to $14.9 million in the preceding quarter. For the year ended December 31, 2024, net interest income decreased 2.4% to $59.6 million, compared to $61.0 million in 2023.

Total revenues (net interest income, before the provision for credit losses, plus noninterest income) were $18.5 million in the fourth quarter of 2024, a 1.0% decrease compared to $18.6 million in the fourth quarter a year ago, and a 2.8% increase compared to $18.0 million in the preceding quarter. For the year 2024, total revenues were $72.4 million, compared to $73.5 million in 2023.

Heartland’s net interest margin was 3.19% in the fourth quarter of 2024, compared to 3.27% in the preceding quarter and 3.49% in the fourth quarter of 2023.

“The interest rate reductions during the third and fourth quarters of 2024 put temporary pressure on our net interest margin due to a lag in the maturity and downward repricing of some higher cost deposits,” said Carrie Almendinger, EVP and Chief Financial Officer.

Provision for Credit Losses
Due to strong credit quality, minimal net loan charge-offs, modest loan growth and economic forecast improvements within the CECL model, Heartland recorded no provision for credit losses in the fourth quarter of 2024. This compared to no provision for credit losses in the third quarter of 2024 and a $550,000 provision for credit losses in the fourth quarter of 2023.

Noninterest Income
Noninterest income increased 7.9% to $3.5 million in the fourth quarter of 2024, compared to $3.2 million in the fourth quarter a year ago, and increased 14.7% compared to $3.0 million in the preceding quarter. “Higher title insurance income and increases in income from life insurance contributed to gains in noninterest income during the fourth quarter,” said Almendinger.

Gains on sale of loans and originated mortgage servicing rights decreased 16.1% to $616,000 in the fourth quarter of 2024, compared to $734,000 in the fourth quarter a year ago, and decreased 10.6% compared to $689,000 in the preceding quarter. For the year 2024, noninterest income increased 3.1% to $12.8 million, compared to $12.4 million in 2023.

Noninterest Expense
Noninterest expense was $11.6 million during the fourth quarter of 2024, compared to $12.4 million in the preceding quarter and $11.6 million in the fourth quarter a year ago. Salary and employee benefits expense, the largest component of noninterest expense, was $6.8 million in the fourth quarter of 2024, compared to $7.2 million in the preceding quarter and $7.4 million in the fourth quarter of 2023. For the year 2024, noninterest expense totaled $47.5 million, compared to $47.1 million in 2023.

One-time merger related expenses totaled $278,000 in the fourth quarter of 2024 and $671,000 in the third quarter of 2024.

The efficiency ratio for the fourth quarter of 2024 was 62.7%, compared to 69.1% for the preceding quarter and 62.5% for the fourth quarter of 2023.

Income Tax Provision
In the fourth quarter of 2024, Heartland recorded $1.2 million in state and federal income tax expense for an effective tax rate of 17.7%, compared to $1.1 million, or 20.2%, in the third quarter of 2024 and $1.1 million, or 17.7%, in the fourth quarter a year ago.

Credit Quality
“Our credit quality metrics continue to remain stable, despite an increase in nonaccrual loans during the quarter,” said McComb. “Overall, we are seeing minimal signs of stress in the loan portfolio, and we hold strong collateral positions with all our loans.”

At December 31, 2024, the allowance for credit losses plus unfunded commitment liability (ACL + UCL) was $19.0 million, or 1.22% of total loans, compared to $19.1 million, or 1.23% of total loans, at September 30, 2024, and $19.4 million, or 1.25% of total loans, a year ago. As of December 31, 2024, the ACL represented 367% of nonaccrual loans, compared to 949% three months earlier and 1,106% one year earlier.

Nonaccrual loans were $4.9 million at December 31, 2024, compared to $1.9 million at September 30, 2024, and $1.6 million at December 31, 2023. At December 31, 2024, nonaccrual loans totaled 12 loans with an average balance of approximately $406,000. There was $3.6 million in loans past due 90 days and still accruing at December 31, 2024, compared to $5,000 at September 30, 2024, and $468,000 at December 31, 2023. Net loan charge-offs totaled $71,000 at December 31, 2024, compared to $32,000 in net loan recoveries at September 30, 2024, and $318,000 in net loan charge-offs at December 31, 2023.

There was no other real estate owned (“OREO”) and other nonperforming assets on the books at December 31, 2024. This compared to OREO of $30,000 at September 30, 2024, and $10,000 at December 31, 2023. Nonperforming assets (NPAs), consisting of nonperforming loans and loans past due 90 days or more, were $8.4 million, or 0.43% of total assets, at December 31, 2024, compared to $1.9 million, or 0.10%, at September 30, 2024, and $2.1 million, or 0.11% of total assets, at December 31, 2023.

About Heartland BancCorp
Heartland BancCorp is a registered Ohio bank holding company and the parent of Heartland Bank, which operates 20 full-service banking offices and TransCounty Title Agency, LLC. Heartland Bank, founded in 1911, provides full-service commercial, small business and consumer banking services; professional financial planning services; and other financial products and services. Heartland Bank is a member of the Federal Reserve, a member of the FDIC and an Equal Housing Lender. Heartland BancCorp is currently quoted on the OTC Markets (OTCQX) under the symbol HLAN. Learn more about Heartland Bank at Heartland.Bank.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (i) Heartland’s plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts; and (ii) other statements identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “targets,” “projects,” or words of similar meaning generally intended to identify forward-looking statements. These forward-looking statements are based upon the current beliefs and expectations of Heartland’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of Heartland. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward-looking statements because of the following factors, among others: (1) the assumptions and estimates used by Heartland’s management include both assumptions as to certain business decisions that are subject to change and, in many respects, subjective judgment, and thus is susceptible to multiple interpretations and periodic revisions based on actual experience and business developments, and thus, may not be realized; (2) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which Heartland is engaged; (3) changes in the interest rate environment may adversely affect net interest income; (4) results may be adversely affected by continued diversification of assets and adverse changes to credit quality; (5) competition from other financial services companies in Heartland’s markets could adversely affect operations; and (6) the current economic slowdown could adversely affect credit quality and loan originations.

Heartland cautions that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements are expressly qualified in their entirety by the cautionary statements above. Heartland does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

Additional Information
Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxy vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The proposed merger will be submitted to both the German American and Heartland shareholders for their consideration. In connection with the proposed merger, German American will file a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission (“SEC”) that will include a joint proxy statement for German American and Heartland and a prospectus for German American and other relevant documents concerning the proposed merger. INVESTORS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE CORRESPONDING JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED MERGER WHEN IT BECOMES AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, TOGETHER WITH ALL AMENDMENTS AND SUPPLEMENTS TO THOSE DOCUMENTS, AS THEY WILL CONTAIN IMPORTANT INFORMATION. You will be able to obtain a copy of the joint proxy statement/prospectus once filed, as well as other filings containing information about German American, without charge, at the SEC’s website (http://www.sec.gov) or by accessing German American’s website (http://www.germanamerican.com) under the tab “Investor Relations” and then under the heading “Financial Information”. Copies of the joint proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge, by directing a request to Bradley C. Arnett, Investor Relations, German American Bancorp, Inc., 711 Main Street, Box 810, Jasper, Indiana 47546, telephone 812-482-1314 or to Jennifer Eckert, Investor Relations, Heartland BancCorp, 430 North Hamilton Road, Whitehall, Ohio 43213, telephone 614-337-4600.

German American and Heartland and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of German American and Heartland in connection with the proposed merger. Information about the directors and executive officers of German American is set forth in the proxy statement for German American’s 2024 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 21, 2024, which information has been updated by German American from time to time in subsequent filings with the SEC. Information about the directors and executive officers of Heartland will be set forth in the joint proxy statement/prospectus relating to the proposed merger. Additional information about the interests of those participants and other persons who may be deemed participants in the transaction may also be obtained by reading the joint proxy statement/prospectus relating to the proposed merger when it becomes available. Free copies of this document may be obtained as described above.


Heartland BancCorp
Quarterly Financial Summary

		Three Months Ended
Earnings and dividends:		Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023
	Interest income	$	27,334		$	27,233		$	26,190		$	25,626		$	25,195
	Interest expense		12,334			12,288			11,408			10,764			9,807
	Net interest income		15,000			14,945			14,782			14,862			15,388
	Provision for credit losses		–			–			–			–			550
	Noninterest income		3,470			3,026			3,212			3,119			3,217
	Noninterest expense		11,580			12,420			11,753			11,775			11,632
	Provision for income taxes		1,222			1,123			1,154			1,124			1,135
	Net income		5,668			4,428			5,087			5,082			5,288

Share data:
	Basic earnings per share	$	2.80		$	2.19		$	2.52		$	2.52		$	2.62
	Diluted earnings per share		2.63			2.12			2.50			2.51			2.61
	Dividends declared per share		0.76			0.76			0.76			0.76			0.76
	Book value per share		86.31			86.95			83.19			81.28			80.66
	Tangible book value per share		80.02			80.61			76.81			74.88			74.23

	Common shares outstanding, 20,000,000 authorized		2,123,355			2,113,153			2,106,879			2,105,737			2,105,737
	Treasury shares		(90,612	)		(90,612	)		(90,612	)		(90,612	)		(90,612	)
	Common shares, net		2,032,743			2,022,541			2,016,267			2,015,125			2,015,125
	Average common shares outstanding, net		2,024,267			2,018,442			2,015,627			2,015,125			2,015,125

Balance sheet – average balances:
	Loans receivable, net	$	1,541,814		$	1,533,219		$	1,524,818		$	1,519,946		$	1,520,331
	Earning assets		1,869,509			1,820,509			1,795,555			1,776,073			1,749,160
	Goodwill & intangible assets		12,805			12,846			12,888			12,934			12,982
	Total assets		1,974,165			1,926,237			1,899,413			1,878,171			1,854,191
	Demand deposits		442,599			423,555			437,524			453,581			476,992
	Deposits		1,751,452			1,689,877			1,670,394			1,639,911			1,622,335
	Borrowings		29,508			47,792			47,225			58,938			60,857
	Shareholders’ equity		175,050			171,562			164,744			163,283			152,393

Ratios:
	Return on average assets		1.14	%		0.91	%		1.08	%		1.09	%		1.13	%
	Return on average equity		12.88	%		10.27	%		12.42	%		12.52	%		13.77	%
	Return on average tangible common equity		13.90	%		11.10	%		13.47	%		13.59	%		15.05	%
	Yield on earning assets		5.82	%		5.95	%		5.87	%		5.80	%		5.71	%
	Cost of deposits		2.73	%		2.75	%		2.61	%		2.45	%		2.21	%
	Cost of funds		2.76	%		2.81	%		2.67	%		2.55	%		2.31	%
	Net interest margin		3.19	%		3.27	%		3.31	%		3.37	%		3.49	%
	Efficiency ratio		62.70	%		69.11	%		65.33	%		65.49	%		62.52	%

Asset quality:
	Net loan charge-offs to average loans		0.02	%		-0.01	%		0.08	%		0.01	%		0.08	%
	Nonperforming loans to gross loans		0.54	%		0.12	%		0.13	%		0.13	%		0.13	%
	Nonperforming assets to total assets		0.43	%		0.10	%		0.11	%		0.10	%		0.11	%
	Allowance for credit losses to gross loans		1.15	%		1.15	%		1.15	%		1.17	%		1.16	%
	ACL + UCL to gross loans		1.22	%		1.23	%		1.23	%		1.27	%		1.25	%

Heartland BancCorp
Consolidated Balance Sheets


Assets		Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023
	Cash and due from	$	15,783		$	35,186		$	14,292		$	18,314		$	16,750
	Interest bearing deposits		87,077			32,585			31,419			15,717			19,932
	Interest bearing time deposits		–			–			–			–			–
	Available-for-sale securities		222,351			229,907			233,270			222,609			211,130
	Held-to-maturity securities		0			0			0			0			0

	Loans held for sale		1,462			2,854			2,855			2,210			1,145

	Commercial		186,156			183,739			179,961			166,413			172,658
	CRE (Owner occupied)		273,764			287,261			291,107			293,542			295,996
	CRE (Non Owner occupied)		503,223			489,483			495,466			489,709			501,056
	1-4 Family		513,223			510,587			504,959			507,374			508,826
	Home Equity		65,098			63,184			59,011			54,178			51,697
	Consumer		17,902			19,436			18,916			18,859			18,974
	Allowance for credit losses		(17,902	)		(17,845	)		(17,813	)		(17,897	)		(17,928	)
	Net Loans		1,541,464			1,535,845			1,531,607			1,512,178			1,531,279

	Premises and equipment		32,115			32,548			33,039			33,298			33,649
	Nonmarketable equity securities		6,949			6,946			6,943			6,941			6,866
	Mortgage servicing rights, net		3,638			3,545			3,473			3,384			3,373
	Foreclosed assets held for sale		0			30			0			0			10
	Goodwill		12,388			12,388			12,388			12,388			12,388
	Intangible Assets		392			433			475			517			565
	Deferred income taxes		7,375			6,007			7,213			6,662			7,087
	Life insurance assets		20,614			20,809			20,675			20,545			20,315
	Accrued interest receivable and other assets		20,128			21,520			22,483			22,429			18,661
	Total assets	$	1,971,736		$	1,940,603		$	1,920,132		$	1,877,192		$	1,883,150

Liabilities and Shareholders’ Equity
Liabilities
	Deposits
	Demand	$	443,754		$	431,582		$	414,829		$	419,864		$	487,631
	Saving, NOW and money market		713,060			686,221			673,674			705,942			711,198
	Time		593,876			587,927			556,690			502,848			443,772
	Total deposits		1,750,690			1,705,730			1,645,193			1,628,654			1,642,601
	Repurchase agreements		4,975			5,590			6,295			4,472			4,583
	FHLB Advances		0			10,000			59,000			38,000			31,000
	Subordinated debt		24,076			24,065			24,055			24,044			24,034
	Interest payable and other liabilities		16,555			19,352			17,849			18,228			18,400
	Total liabilities		1,796,296			1,764,737			1,752,392			1,713,398			1,720,618

Shareholders’ Equity
	Common stock, without par value		64,986			63,899			63,002			62,797			62,725
	Retained earnings		134,193			130,069			127,174			123,617			120,064
	Accumulated other comprehensive income (expense)		(18,745	)		(13,108	)		(17,442	)		(17,626	)		(15,263	)
	Treasury stock at Cost, Common		(4,994	)		(4,994	)		(4,994	)		(4,994	)		(4,994	)
	Total shareholders’ equity		175,440			175,866			167,740			163,794			162,532
	Total liabilities and shareholders’ equity	$	1,971,736		$	1,940,603		$	1,920,132		$	1,877,192		$	1,883,150

Heartland BancCorp
Consolidated Statements of Income

		Three Months Ended
Interest Income		Dec. 31, 2024		Sep. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023
	Loans	$	23,943	$	24,194	$	23,381	$	23,015	$	22,850
	Securities
	Taxable		1,756		1,870		1,744		1,637		1,374
	Tax-exempt		683		686		677		657		629
	Other		952		483		388		317		342
	Total interest income		27,334		27,233		26,190		25,626		25,195
Interest Expense
	Deposits		12,005		11,687		10,832		10,006		9,017
	Borrowings		329		601		576		758		790
	Total interest expense		12,334		12,288		11,408		10,764		9,807
Net Interest Income			15,000		14,945		14,782		14,862		15,388
Provision for Credit Losses			–		–		–		–		550
Net Interest Income After Provision for Credit Losses			15,000		14,945		14,782		14,862		14,838
Noninterest income
	Service charges		977		1,005		1,011		952		1,002
	Gains on sale of loans and originated MSR		616		689		645		518		734
	Loan servicing fees, net		370		416		396		494		354
	Title insurance income		292		120		231		210		214
	Increase in cash value of life insurance		637		134		130		230		175
	Other		578		662		799		715		738
	Total noninterest income		3,470		3,026		3,212		3,119		3,217
Noninterest Expense
	Salaries and employee benefits		6,764		7,181		7,064		7,300		7,430
	Net occupancy and equipment expense		1,079		1,133		1,145		1,106		1,052
	Software and data processing fees		1,187		1,230		1,158		1,156		1,163
	Professional fees		702		1,125		496		233		242
	Marketing expense		228		213		303		310		320
	State financial institution tax		327		292		293		292		260
	FDIC insurance premiums		229		214		234		284		299
	Other		1,064		1,032		1,060		1,094		866
	Total noninterest expense		11,580		12,420		11,753		11,775		11,632
Income before Income Tax			6,890		5,551		6,241		6,206		6,423
Provision for Income Taxes			1,222		1,123		1,154		1,124		1,135
Net Income		$	5,668	$	4,428	$	5,087	$	5,082	$	5,288
Basic Earnings Per Share		$	2.80	$	2.19	$	2.52	$	2.52	$	2.62
Diluted Earnings Per Share		$	2.63	$	2.12	$	2.50	$	2.51	$	2.61

Heartland BancCorp
Consolidated Statements of Income

		Twelve Months Ended
Interest Income		Dec. 31, 2024		Dec. 31, 2023
	Loans	$	94,533	$	84,424
	Securities		–
	Taxable		7,007		4,320
	Tax-exempt		2,703		2,442
	Other		2,140		1,200
	Total interest income		106,383		92,386
Interest Expense			–
	Deposits		44,530		28,690
	Borrowings		2,264		2,662
	Total interest expense		46,794		31,352
Net Interest Income			59,589		61,034
Provision for Credit Losses			–		2,600
Net Interest Income After Provision for Credit Losses			59,589		58,434
Noninterest income
	Service charges		3,945		4,012
	Gains on sale of loans and originated MSR		2,468		2,372
	Loan servicing fees, net		1,676		1,530
	Title insurance income		853		892
	Increase in cash value of life insurance		1,131		526
	Other		2,754		3,108
	Total noninterest income		12,827		12,440
Noninterest Expense
	Salaries and employee benefits		28,309		29,558
	Net occupancy and equipment expense		4,463		4,231
	Software and data processing fees		4,731		4,462
	Professional fees		2,556		1,021
	Marketing expense		1,054		1,199
	State financial institution tax		1,204		1,039
	FDIC insurance premiums		961		1,166
	Other		4,250		4,376
	Total noninterest expense		47,528		47,052
Income before Income Tax			24,888		23,822
Provision for Income Taxes			4,623		4,306
Net Income		$	20,265	$	19,516
Basic Earnings Per Share		$	10.04	$	9.69
Diluted Earnings Per Share		$	9.75	$	9.62

Heartland BancCorp
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands except per share amounts)(Unaudited)

Asset Quality Ratios and Data:
	Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023
Nonaccrual loans (excluding restructured loans)	$	4,872		$	1,881		$	1,569		$	1,817		$	1,621
Nonaccrual restructured loans		–			–			–			–			–
Loans past due 90 days and still accruing		3,559			5			513			149			468
Total non-performing loans		8,431			1,886			2,082			1,966			2,089

OREO and other non-performing assets		–			30			–			–			10
Total non-performing assets	$	8,431		$	1,916		$	2,082		$	1,966		$	2,099

Nonperforming loans to gross loans		0.54	%		0.12	%		0.13	%		0.13	%		0.13	%
Nonperforming assets to total assets		0.43	%		0.10	%		0.11	%		0.10	%		0.11	%
Allowance for credit losses to gross loans		1.15	%		1.15	%		1.15	%		1.17	%		1.16	%
Unfunded commitment liability to gross loans		0.07	%		0.08	%		0.08	%		0.10	%		0.09	%
ACL + UCL to gross loans		1.22	%		1.23	%		1.23	%		1.27	%		1.25	%

Contact:	G. Scott McComb, Chairman, President & CEO
	Heartland BancCorp 614-337-4600

The MIL Network –

January 29, 2025

MIL-OSI: First Community Bankshares, Inc. Announces Fourth Quarter and Full Year 2024 Results, Quarterly Cash Dividend, and Special Dividend

Source: GlobeNewswire (MIL-OSI)

BLUEFIELD, Va., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended December 31, 2024. The Company reported net income of $13.04 million, or $0.71 per diluted common share, for the quarter ended December 31, 2024. Net income for the twelve months ended December 31, 2024, was $51.60 million or $2.80 per diluted common share.

The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31 per common share. The quarterly dividend is payable to common shareholders of record on February 14, 2025, and is expected to be paid on February 28, 2025. This marks the 40th consecutive year of regular dividends to common shareholders.

Additionally, the Board of Directors declared a special cash dividend to common shareholders of $2.07 per common share.

The Company’s capital management plan and philosophy require the maintenance of a strong capital base from which to grow and serve its customers. As part of the capital plan, the Company intends to return current earnings not needed to fund growth in core operations or other uses back to shareholders through regular cash dividends and stock repurchases. To the extent current earnings exceed those capital uses, the Company may declare special dividends from time to time. The Company earned approximately $197.45 million in the last four years, from which it paid regular dividends of $79.68 million, and repurchased shares for $81.95 million. Since July 1, 2013, the Company earned approximately $415.90 million, from which it paid regular dividends of $174.84 million, special dividends of $8.12 million, and repurchased 9.33 million shares for $232.08 million

The Board of Directors determined that the Company will have sufficient surplus capital to support anticipated growth opportunities and other needs after payment of the special dividend totaling approximately $37.92 million. This special cash dividend is also payable on February 28, 2025, to shareholders of record February 14, 2025, and may not be indicative of special cash dividend activity in the future.

Fourth Quarter 2024 Highlights

Income Statement

Net income of $13.04 million for the fourth quarter of 2024, was a increase of $1.26 million, or 10.65%, from the same quarter of 2023. Net income of $51.60 million for the year, was an increase of $3.58 million, or 7.46%, from the same period of 2023.
Net interest income decreased $730 thousand compared to the same quarter in 2023, primarily due to increases in rates paid on interest-bearing deposits.
Net interest margin of 4.36% was a decrease of 6 basis points over the same quarter of 2023. The yield on earning assets increased 11 basis points from the same period of 2023 and is primarily attributable to an increase in interest income of $422 thousand. Interest income on interest-bearing deposits with banks increased $2.91 million and was primarily due to the increase in the average balance of $246.39 million offset by a decrease in yield of 75 basis points. This increase in interest income was offset by decreases in interest income for loans and securities available-for-sale of $2.04 million and $450 thousand, respectively. The decreases were primarily due to decreases in the average balance for loans and securities available-for-sale of $159.86 million and $107.16 million offset by increases in yield of 2 basis points and 72 basis points, respectively. Interest expense on interest-bearing liabilities increased $1.16 million and is primarily attributable to yield. The yield on interest-bearing liabilities increased 26 basis points when compared with the same period of 2023 and is primarily attributable to increased rates on interest-bearing deposit liabilities.
Noninterest income decreased approximately $125 thousand, or 1.19%, when compared to the same quarter of 2023. Noninterest expense decreased $2.67 million, or 9.98% when compared to the same period of 2023. The decrease is primarily attributable to litigation expense of $3.00 million recorded in the fourth quarter of 2023.
Annualized return on average assets (“ROA”) was 1.60% for both the fourth quarter and for the twelve months of 2024 compared to 1.43% and 1.48% for the same periods, respectively, of 2023. Annualized return on average common equity (“ROE”) was 9.89% for the fourth quarter of 2024 and 10.03% for the year compared to 9.39% and 10.02% for the same periods, respectively, of 2023. Annualized return on average tangible common equity (“ROTCE”) was 14.12% for the fourth quarter of 2024 and 14.48% for the year compared to 13.82% and 14.65% for the same periods, respectively, of 2023.

Balance Sheet and Asset Quality

Consolidated assets totaled $3.26 billion at December 31, 2024.
Loans decreased $156.21 million, or 6.07%, from December 31, 2023. Securities available for sale decreased $111.12 million, or 39.55%, from December 31, 2023. Deposits decreased $31.08 million, or 1.14%. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $261.03 million, or 224.22%.
The Company did not repurchase any common shares during the fourth quarter of 2024. The Company repurchased 257,294 common shares during 2024 at a total cost of $8.72 million.
Non-performing loans to total loans increased to 0.83% when compared with the same quarter of 2023. The Company experienced net charge-offs for the fourth quarter of 2024 of $1.48 million, or 0.24% of annualized average loans, compared to net charge-offs of $883 thousand, or 0.14%, of annualized average loans for the same period in 2023.
The allowance for credit losses to total loans was 1.44% at December 31, 2024, compared to 1.41% at December 31, 2023.
Book value per share at December 31, 2024, was $ 28.73, an increase of $1.53 from year-end 2023.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

About First Community Bankshares, Inc.

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2024. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.62 billion in combined assets as of December 31, 2024. The Company reported consolidated assets of $3.26 billion as of December 31, 2024. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended															Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
(Amounts in thousands, except share and per share data)	2024			2024			2024			2024			2023			2024			2023
Interest income
Interest and fees on loans	$	31,637		$	32,120		$	32,696		$	33,418		$	33,676		$	129,871		$	126,727
Interest on securities		1,447			1,070			1,211			1,698			1,888			5,426			7,956
Interest on deposits in banks		3,348			3,702			2,882			913			438			10,845			2,482
Total interest income		36,432			36,892			36,789			36,029			36,002			146,142			137,165
Interest expense
Interest on deposits		5,099			5,298			4,877			4,365			3,935			19,639			9,341
Interest on borrowings		–			–			–			35			4			35			140
Total interest expense		5,099			5,298			4,877			4,400			3,939			19,674			9,481
Net interest income		31,333			31,594			31,912			31,629			32,063			126,468			127,684
Provision for credit losses		1,082			1,360			144			1,011			1,029			3,597			7,985
Net interest income after provision		30,251			30,234			31,768			30,618			31,034			122,871			119,699
Noninterest income		10,337			10,452			9,342			9,259			10,462			39,390			37,452
Noninterest expense		24,107			24,177			24,897			23,386			26,780			96,567			95,177
Income before income taxes		16,481			16,509			16,213			16,491			14,716			65,694			61,974
Income tax expense		3,441			3,476			3,527			3,646			2,932			14,090			13,954
Net income	$	13,040		$	13,033		$	12,686		$	12,845		$	11,784		$	51,604		$	48,020


Earnings per common share
Basic	$	0.71		$	0.71		$	0.69		$	0.70		$	0.64		$	2.81		$	2.67
Diluted	$	0.71		$	0.71		$	0.71		$	0.71		$	0.66		$	2.80		$	2.72
Cash dividends per common share
Regular		0.31			0.31			0.29			0.29			0.29			1.20			1.16
Weighted average shares outstanding
Basic		18,299,612			18,279,612			18,343,958			18,476,128			18,530,114			18,349,498			17,996,373
Diluted		18,418,441			18,371,907			18,409,876			18,545,910			18,575,226			18,430,206			18,027,151
Performance ratios
Return on average assets		1.60	%		1.60	%		1.58	%		1.60	%		1.43	%		1.60	%		1.48	%
Return on average common equity		9.89	%		10.04	%		10.02	%		10.18	%		9.39	%		10.03	%		10.02	%
Return on average tangible common equity(1)		14.12	%		14.46	%		14.54	%		14.82	%		13.82	%		14.48	%		14.65	%

_____________

(1)		A non-GAAP financial measure defined as net income divided by average stockholders’ equity less average goodwill and other intangible assets.


CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited)

	Three Months Ended										Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,
(Amounts in thousands)	2024		2024		2024		2024		2023		2024		2023
Noninterest income
Wealth management	$	1,251	$	1,071	$	1,064	$	1,099	$	1,052	$	4,485	$	4,179
Service charges on deposits		3,613		3,661		3,428		3,310		3,637		14,012		13,996
Other service charges and fees		3,575		3,697		3,670		3,450		3,541		14,392		13,647
(Loss) gain on sale of securities		–		–		–		–		–		–		(21	)
Other operating income		1,898		2,023		1,180		1,400		2,232		6,501		5,651
Total noninterest income	$	10,337	$	10,452	$	9,342	$	9,259	$	10,462	$	39,390	$	37,452
Noninterest expense
Salaries and employee benefits	$	13,501	$	13,129	$	12,491	$	12,581	$	12,933	$	51,702	$	49,887
Occupancy expense		1,329		1,270		1,309		1,378		1,252		5,286		4,967
Furniture and equipment expense		1,562		1,574		1,687		1,545		1,489		6,368		5,878
Service fees		2,305		2,461		2,427		2,449		2,255		9,642		8,908
Advertising and public relations		1,165		967		933		796		843		3,861		3,300
Professional fees		295		221		330		372		787		1,218		1,567
Amortization of intangibles		535		536		530		530		536		2,131		1,731
FDIC premiums and assessments		365		365		364		369		376		1,463		1,511
Merger expense		–		–		–		–		–		–		2,393
Litigation expense		–		–		1,800		–		3,000		1,800		3,000
Other operating expense		3,050		3,654		3,026		3,366		3,309		13,096		12,035
Total noninterest expense	$	24,107	$	24,177	$	24,897	$	23,386	$	26,780	$	96,567	$	95,177


RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)

	Three Months Ended															Year Ended
	December 31,			September 30,			June 30,			March 31,			December 31,			December 31,
(Amounts in thousands, except per share data)	2024			2024			2024			2024			2023			2024			2023
Adjusted Net Income for diluted earnings per share	$	13,040		$	13,033		$	12,686		$	12,845		$	12,314		$	51,604		$	49,120
Non-GAAP adjustments:
Loss (gain) on sale of securities		–			–			–			–			–			–			21
Merger expense		–			–			–			–			–			–			2,393
Day 2 provision for allowance for credit losses – Surrey		–			–			–			–			–			–			1,614
Litigation expense		–			–			1,800			–			3,000			1,800			3,000
Other items(1)		–			(825	)		–			–			–			(825	)		(204	)
Total adjustments		–			(825	)		1,800			–			3,000			975			6,824
Tax effect		–			(198	)		432			–			720			234			1,203
Adjusted earnings, non-GAAP	$	13,040		$	12,406		$	14,054		$	12,845		$	14,594		$	52,345		$	54,741

Adjusted diluted earnings per common share, non-GAAP	$	0.71		$	0.68		$	0.76		$	0.69		$	0.79		$	2.84		$	3.04
Performance ratios, non-GAAP
Adjusted return on average assets		1.60	%		1.53	%		1.75	%		1.60	%		1.77	%		1.62	%		1.68	%
Adjusted return on average common equity		9.89	%		9.56	%		11.10	%		10.18	%		11.63	%		10.18	%		11.43	%
Adjusted return on average tangible common equity (2)		14.12	%		13.77	%		16.11	%		14.82	%		17.11	%		14.69	%		16.70	%

_____________

(1)		Includes other non-recurring income and expense items.
(2)		A non-GAAP financial measure defined as adjusted earnings divided by average stockholders’ equity less average goodwill and other intangible assets.


AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

	Three Months Ended December 31,
	2024							2023
	Average				Average Yield/			Average				Average Yield/
(Amounts in thousands)	Balance		Interest(1)		Rate(1)			Balance		Interest(1)		Rate(1)
Assets
Earning assets
Loans(2)(3)	$	2,421,668	$	31,717		5.21	%	$	2,581,528	$	33,758		5.19	%
Securities available for sale		167,357		1,474		3.50	%		274,513		1,924		2.78	%
Interest-bearing deposits		277,678		3,351		4.80	%		31,293		438		5.55	%
Total earning assets		2,866,703		36,542		5.07	%		2,887,334		36,120		4.96	%
Other assets		379,566							379,960
Total assets	$	3,246,269						$	3,267,294

Liabilities and stockholders’ equity
Interest-bearing deposits
Demand deposits	$	663,033	$	226		0.14	%	$	697,555	$	180		0.10	%
Savings deposits		886,886		3,476		1.56	%		838,455		3,050		1.44	%
Time deposits		242,899		1,396		2.29	%		254,668		705		1.10	%
Total interest-bearing deposits		1,792,818		5,098		1.13	%		1,790,678		3,935		0.87	%
Borrowings
Federal funds purchased		–		–		–			293		4		5.35	%
Retail repurchase agreements		995		1		0.05	%		1,090		–		0.05	%
Total borrowings		995		1		0.05	%		1,383		4		0.87	%
Total interest-bearing liabilities		1,793,813		5,099		1.13	%		1,792,061		3,939		0.87	%
Noninterest-bearing demand deposits		881,767							931,681
Other liabilities		46,142							45,819
Total liabilities		2,721,722							2,769,561
Stockholders’ equity		524,547							497,733
Total liabilities and stockholders’ equity	$	3,246,269						$	3,267,294
Net interest income, FTE(1)			$	31,443						$	32,181
Net interest rate spread						3.94	%						4.09	%
Net interest margin, FTE(1)						4.36	%						4.42	%

_____________

(1)		Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2)		Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)		Interest on loans includes non-cash and accelerated purchase accounting accretion of $863 thousand and $792 thousand for the three months ended December 31, 2024 and 2023, respectively.


AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

	Year Ended December 31,
	2024							2023
	Average				Average Yield/			Average				Average Yield/
(Amounts in thousands)	Balance		Interest(1)		Rate(1)			Balance		Interest(1)		Rate(1)
Assets
Earning assets
Loans(2)(3)	$	2,481,215	$	130,196		5.25	%	$	2,538,361	$	127,019		5.00	%
Securities available for sale		171,081		5,547		3.24	%		298,389		8,115		2.72	%
Interest-bearing deposits		206,629		10,850		5.25	%		46,601		2,485		5.33	%
Total earning assets		2,858,925		146,593		5.13	%		2,883,351		137,619		4.77	%
Other assets		374,398							369,700
Total assets	$	3,233,323						$	3,253,051

Liabilities and stockholders’ equity
Interest-bearing deposits
Demand deposits	$	662,584	$	796		0.12	%	$	686,534	$	405		0.06	%
Savings deposits		878,584		14,206		1.62	%		847,397		6,781		0.80	%
Time deposits		246,035		4,636		1.88	%		267,957		2,155		0.80	%
Total interest-bearing deposits		1,787,203		19,638		1.10	%		1,801,888		9,341		0.52	%
Borrowings
Federal funds purchased		628		35		5.53	%		2,715		139		5.12	%
Retail repurchase agreements		1,045		1		0.05	%		1,528		1		0.06	%
Total borrowings		1,673		36		2.15	%		4,243		140		3.30	%
Total interest-bearing liabilities		1,788,876		19,674		1.10	%		1,806,131		9,481		0.52	%
Noninterest-bearing demand deposits		882,700							926,378
Other liabilities		47,362							41,477
Total liabilities		2,718,938							2,773,986
Stockholders’ equity		514,385							479,065
Total liabilities and stockholders’ equity	$	3,233,323						$	3,253,051
Net interest income, FTE(1)			$	126,919						$	128,138
Net interest rate spread						4.03	%						4.25	%
Net interest margin, FTE(1)						4.44	%						4.44	%

_____________

(1)		Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2)		Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)		Interest on loans includes non-cash and accelerated purchase accounting accretion of $2.90 million and $2.74 million for the twelve months ended December 31, 2024 and 2023, respectively.


CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(Amounts in thousands, except per share data)	2024			2024			2024			2024			2023
Assets
Cash and cash equivalents	$	377,454		$	315,338		$	329,877		$	248,905		$	116,420
Debt securities available for sale, at fair value		169,849			166,669			129,686			166,247			280,961
Loans held for investment, net of unearned income		2,416,089			2,444,113			2,473,268			2,519,833			2,572,298
Allowance for credit losses		(34,825	)		(35,118	)		(34,885	)		(35,461	)		(36,189	)
Loans held for investment, net		2,381,264			2,408,995			2,438,383			2,484,372			2,536,109
Premises and equipment, net		48,735			49,654			50,528			51,333			50,680
Other real estate owned		521			346			100			374			192
Interest receivable		9,207			9,883			9,984			10,719			10,881
Goodwill		143,946			143,946			143,946			143,946			143,946
Other intangible assets		13,014			13,550			14,085			14,615			15,145
Other assets		117,226			115,980			116,230			115,470			114,211
Total assets	$	3,261,216		$	3,224,361		$	3,232,819		$	3,235,981		$	3,268,545

Liabilities
Deposits
Noninterest-bearing	$	883,499		$	869,723		$	889,462		$	902,396		$	931,920
Interest-bearing		1,807,748			1,789,530			1,787,810			1,779,819			1,790,405
Total deposits		2,691,247			2,659,253			2,677,272			2,682,215			2,722,325
Securities sold under agreements to repurchase		906			954			894			1,006			1,119
Interest, taxes, and other liabilities		42,671			43,460			45,769			45,816			41,807
Total liabilities		2,734,824			2,703,667			2,723,935			2,729,037			2,765,251

Stockholders’ equity
Common stock		18,322			18,291			18,270			18,413			18,502
Additional paid-in capital		169,752			168,691			168,272			173,041			175,841
Retained earnings		349,489			342,121			334,756			327,389			319,902
Accumulated other comprehensive loss		(11,171	)		(8,409	)		(12,414	)		(11,899	)		(10,951	)
Total stockholders’ equity		526,392			520,694			508,884			506,944			503,294
Total liabilities and stockholders’ equity	$	3,261,216		$	3,224,361		$	3,232,819		$	3,235,981		$	3,268,545

Shares outstanding at period-end		18,321,795			18,290,938			18,270,273			18,413,088			18,502,396
Book value per common share	$	28.73		$	28.47		$	27.85		$	27.53		$	27.20
Tangible book value per common share(1)		20.16			19.86			19.20			18.92			18.60

_____________

(1 )		A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangible assets, divided by shares outstanding.


SELECTED CREDIT QUALITY INFORMATION (Unaudited)

	December 31,			September 30,			June 30,			March 31,			December 31,
(Amounts in thousands)	2024			2024			2024			2024			2023
Allowance for Credit Losses
Balance at beginning of period:
Allowance for credit losses – loans	$	35,118		$	34,885		$	35,461		$	36,189		$	36,031
Allowance for credit losses – loan commitments		441			441			746			746			758
Total allowance for credit losses beginning of period		35,559			35,326			36,207			36,935			36,789
Provision for credit losses:
Provision for credit losses – loans		1,182			1,360			449			1,011			1,041
(Recovery of) provision for credit losses – loan commitments		(100	)		–			(305	)		–			(12	)
Total provision for credit losses – loans and loan commitments		1,082			1,360			144			1,011			1,029
Charge-offs		(2,005	)		(1,799	)		(1,599	)		(2,448	)		(2,105	)
Recoveries		530			672			574			709			1,222
Net (charge-offs) recoveries		(1,475	)		(1,127	)		(1,025	)		(1,739	)		(883	)
Balance at end of period:
Allowance for credit losses – loans		34,825			35,118			34,885			35,461			36,189
Allowance for credit losses – loan commitments		341			441			441			746			746
Ending balance	$	35,166		$	35,559		$	35,326		$	36,207		$	36,935

Nonperforming Assets
Nonaccrual loans	$	19,869		$	19,754		$	19,815		$	19,617		$	19,356
Accruing loans past due 90 days or more		149			176			19			30			104
Modified loans past due 90 days or more		135			–			–			–			–
Total nonperforming loans		20,153			19,930			19,834			19,647			19,460
OREO		521			346			100			374			192
Total nonperforming assets	$	20,674		$	20,276		$	19,934		$	20,021		$	19,652


Additional Information
Total modified loans	$	2,260		$	2,320		$	2,290		$	2,177		$	1,873

Asset Quality Ratios
Nonperforming loans to total loans		0.83	%		0.82	%		0.80	%		0.78	%		0.76	%
Nonperforming assets to total assets		0.63	%		0.63	%		0.62	%		0.62	%		0.60	%
Allowance for credit losses to nonperforming loans		172.80	%		176.21	%		175.88	%		180.49	%		185.97	%
Allowance for credit losses to total loans		1.44	%		1.44	%		1.41	%		1.41	%		1.41	%
Annualized net charge-offs (recoveries) to average loans		0.24	%		0.18	%		0.16	%		0.27	%		0.14	%

FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000

The MIL Network –

January 29, 2025

MIL-OSI: Qorvo® Announces Fiscal 2025 Third Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

GREENSBORO, N.C., Jan. 28, 2025 (GLOBE NEWSWIRE) — Qorvo^® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2025 third quarter ended December 28, 2024.

On a GAAP basis, revenue for Qorvo’s fiscal 2025 third quarter was $916.3 million, gross margin was 42.7%, operating income was $53.0 million, and diluted earnings per share was $0.43. On a non-GAAP basis, gross margin was 46.5%, operating income was $177.9 million, and diluted earnings per share was $1.61.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “Qorvo is executing on a broad set of strategic initiatives to expand margin, generate strong free cash flow, and increase shareholder value. During the December quarter, we continued to successfully support our largest customer, who represented approximately 50% of sales. Within our Android 5G product portfolio, we are narrowing our focus to the higher-value flagship and premium tiers, where customers value Qorvo’s differentiated products. In HPA, we had record Defense & Aerospace quarterly revenue and expect continued strength in the March quarter. As we continue to execute on our growth and diversification strategy, we expect HPA and CSG to deliver double-digit growth in fiscal 2025 and next fiscal year.”

Financial Commentary and Outlook

Grant Brown, chief financial officer of Qorvo, said, “Qorvo exceeded the midpoint of our December quarter non-GAAP guidance in revenue, gross margin, and EPS. During the quarter, we took proactive steps to change how we support our Android business. These actions will reduce operating expense and are expected to benefit gross margin in our fiscal 2026. Subsequent to the quarter, we divested our silicon carbide business. These actions, in aggregate, are expected to support a high-40%’s gross margin in seasonally strong quarters of fiscal 2026 and additional gross margin improvement in fiscal 2027.”

Qorvo’s current outlook for the March 2025 quarter is:

Quarterly revenue of approximately $850 million, plus or minus $25 million¹
Non-GAAP gross margin between 43% and 44%
Non-GAAP diluted earnings per share between $0.90 and $1.10

_{¹ Includes immaterial silicon carbide revenue, versus silicon carbide revenue of approximately $9 million in the December 2024 quarter}

See “Forward-looking non-GAAP financial measures” below. Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

Selected Financial Information

The following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached.

SELECTED GAAP RESULTS
(In millions, except for percentages and EPS)
(Unaudited)

	Q3 Fiscal 2025			Q2 Fiscal 2025			Q3 Fiscal 2024			Sequential Change			Year-over-Year Change
Revenue	$	916.3		$	1,046.5		$	1,073.9		$	(130.2	)	$	(157.6	)
Gross profit	$	391.4		$	445.3		$	387.9		$	(53.9	)	$	3.5
Gross margin		42.7	%		42.6	%		36.1	%	0.1 ppt			6.6 ppt
Operating expenses	$	338.4		$	435.6		$	429.4		$	(97.2	)	$	(91.0	)
Operating income (loss)	$	53.0		$	9.7		$	(41.6	)	$	43.3		$	94.6
Net income (loss)	$	41.3		$	(17.4	)	$	(126.9	)	$	58.7		$	168.2
Weighted-average diluted shares		95.0			94.9			97.2			0.1			(2.2	)
Diluted EPS (loss per share)	$	0.43		$	(0.18	)	$	(1.31	)	$	0.61		$	1.74


SELECTED NON-GAAP RESULTS⁽¹⁾
(In millions, except for percentages and EPS)
(Unaudited)

	Q3 Fiscal 2025			Q2 Fiscal 2025			Q3 Fiscal 2024			Sequential Change			Year-over-Year Change
Revenue	$	916.3		$	1,046.5		$	1,073.9		$	(130.2	)	$	(157.6	)
Gross profit	$	426.3		$	492.0		$	470.5		$	(65.7	)	$	(44.2	)
Gross margin		46.5	%		47.0	%		43.8	%	(0.5) ppt			2.7 ppt
Operating expenses	$	248.4		$	279.8		$	234.0		$	(31.4	)	$	14.4
Operating income	$	177.9		$	212.2		$	236.5		$	(34.3	)	$	(58.6	)
Net income	$	152.8		$	179.8		$	205.9		$	(27.0	)	$	(53.1	)
Weighted-average diluted shares		95.0			95.8			97.8			(0.8	)		(2.8	)
Diluted EPS	$	1.61		$	1.88		$	2.10		$	(0.27	)	$	(0.49	)

^{(1) Adjusted for stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, net adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, gain or loss on investments, and an adjustment of income taxes.}

SELECTED GAAP RESULTS BY OPERATING SEGMENT
(In millions, except percentages)
(Unaudited)
	Q3 Fiscal 2025			Q2 Fiscal 2025			Q3 Fiscal 2024			Sequential Change		Year-over-Year Change
Revenue
HPA	$	171.7		$	148.3		$	118.9		15.8	%	44.4	%
CSG		109.5			146.8			108.9		(25.4	)%	0.6	%
ACG		635.1			751.4			846.1		(15.5	)%	(24.9	)%
Total revenue	$	916.3		$	1,046.5		$	1,073.9		(12.4	)%	(14.7	)%
Operating income (loss)
HPA	$	32.6		$	13.1		$	1.6		148.9	%	1,937.5	%
CSG		(11.7	)		(9.0	)		(25.6	)	(30.0	)%	54.3	%
ACG		161.2			215.1			263.8		(25.1	)%	(38.9	)%
All other⁽¹⁾		(129.1	)		(209.5	)		(281.4	)	38.4	%	54.1	%
Total operating income (loss)	$	53.0		$	9.7		$	(41.6	)	446.4	%	227.4	%
Operating income (loss) as a % of revenue
HPA		19.0	%		8.8	%		1.3	%	10.2 ppt		17.7 ppt
CSG		(10.7	)		(6.1	)		(23.5	)	(4.6) ppt		12.8 ppt
ACG		25.4			28.6			31.2		(3.2) ppt		(5.8) ppt
Total operating income (loss) as a % of revenue		5.8	%		0.9	%	(3.9		)%	4.9 ppt		9.7 ppt

^{(1) Includes stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, net adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, costs associated with upgrading certain of the Company’s core business systems and other miscellaneous corporate overhead expenses.}

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.

In managing Qorvo’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, and stock-based compensation expense, which may obscure trends in Qorvo’s underlying performance.

We believe that these non-GAAP financial measures offer an additional view of Qorvo’s operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo’s results of operations and the factors and trends affecting Qorvo’s business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo’s operations, are outlined below:

Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude amortization of intangible assets, stock-based compensation expense, restructuring-related charges, acquisition and integration-related costs, and certain other expense (income). We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin facilitates a useful evaluation of our historical performance and projected costs and the potential for realizing cost efficiencies.

We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, and customer relationships, as items arising from pre-acquisition activities, determined at the time of an acquisition, rather than ongoing costs of operating Qorvo’s business. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangible assets is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting and contribute to revenue generation.

We believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo’s ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo’s gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to restructuring-related charges, and acquisition and integration-related costs do not constitute part of Qorvo’s ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

Non-GAAP gross profit and gross margin also exclude net adjustments related to a terminated capacity reservation agreement. In October 2023, a long-term capacity reservation agreement with a foundry supplier was amended. Pursuant to the amendment, Qorvo is no longer obligated to order silicon wafers from the foundry supplier and the agreement was terminated effective December 31, 2023. Included in the net adjustments to our cost of goods sold for the third quarter of fiscal 2024 is a contract termination fee which we paid during the fourth quarter of fiscal 2024. We believe these net adjustments are not reflective of the performance of our ongoing business.

Non-GAAP operating expenses, operating income and operating margin. Non-GAAP operating expenses, operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets and certain other expense (income). We believe that presentation of a measure of operating expenses, operating income and operating margin that excludes amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets and certain other expense (income) do not constitute part of Qorvo’s ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP operating expenses, operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets, certain other expense (income), gain or loss on investments, and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating expenses, operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is calculated as free cash flow as a percentage of revenue. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

EBITDA. Qorvo adjusts GAAP net income for interest expense, interest income, income tax expense (benefit), depreciation and intangible amortization expense, stock-based compensation and other charges that are not representative of Qorvo’s ongoing operations (including goodwill and other asset impairments, investment activity, acquisition-related costs and restructuring-related costs and certain net adjustments related to a terminated capacity reservation agreement) when presenting EBITDA. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).

Non-GAAP ROIC. Return on invested capital (ROIC) is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations’ use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of equity plus net debt, less certain goodwill.

Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo’s indebtedness by reflecting cash and investments that could be used to repay debt.

Inventory days on hand. Inventory days on hand is defined as (a) average net inventory for the period, divided by (b) the result of non-GAAP cost of goods sold for the period divided by the number of days in the period.

Forward-looking non-GAAP financial measures. Our earnings release contains forward-looking free cash flow, gross margin, income tax rate and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration-related costs, restructuring-related charges, gain or loss on assets, goodwill and other asset impairments, gain or loss on investments and the provision for income taxes, which could have a potentially significant impact on our future GAAP results.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.

Qorvo will conduct a conference call at 4:30 p.m. ET today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at the following URL: https://ir.qorvo.com (under “Events & Presentations”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 1-412-317-0088 and using the passcode 8143934. The playback will be available through the close of business February 4, 2025.

About Qorvo

Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure and mobile. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “forecast,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations as of the date the statement is first made, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We caution you not to place undue reliance upon any such forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, due to timing of customers’ forecasts; our inability to effectively manage or maintain relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions, divestitures and other strategic investments failing to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with social, environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches, failed system upgrades or regular maintenance and other similar disruptions to our IT systems; theft, loss or misuse of personal data by or about our employees, customers or third parties; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; and volatility in the price of our common stock. These and other risks and uncertainties, which are described in more detail under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 30, 2024, and Qorvo’s subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

# # #

Financial Tables to Follow

QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

	Three Months Ended						Nine Months Ended
	December 28, 2024			December 30, 2023			December 28, 2024			December 30, 2023
Revenue	$	916,317		$	1,073,861		$	2,849,497		$	2,828,518

Costs and expenses:
Cost of goods sold		524,901			685,983			1,680,471			1,721,880
Research and development		179,126			164,329			567,778			502,366
Selling, general and administrative		90,360			86,914			313,043			296,033
Other operating expense		68,905			178,204			220,899			246,516
Total costs and expenses		863,292			1,115,430			2,782,191			2,766,795

Operating income (loss)		53,025			(41,569	)		67,306			61,723
Interest expense		(18,655	)		(17,581	)		(58,343	)		(51,963	)
Other income, net		14,526			15,359			41,713			34,286

Income (loss) before income taxes		48,896			(43,791	)		50,676			44,046
Income tax expense		(7,625	)		(83,147	)		(26,426	)		(117,103	)
Net income (loss)	$	41,271		$	(126,938	)	$	24,250		$	(73,057	)

Net income (loss) per share:
Basic	$	0.44		$	(1.31	)	$	0.26		$	(0.75	)
Diluted	$	0.43		$	(1.31	)	$	0.25		$	(0.75	)

Weighted-average shares of common stock outstanding:
Basic		94,341			97,152			94,942			97,905
Diluted		95,031			97,152			95,808			97,905

QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited)

	Three Months Ended
	December 28, 2024			September 28, 2024			December 30, 2023

GAAP operating income (loss)	$	53,025		$	9,675		$	(41,569	)
Stock-based compensation expense		28,384			38,181			21,755
Amortization of intangible assets		26,085			29,482			29,787
Restructuring-related charges		68,072			34,396			6,075
Acquisition and integration-related costs		1,382			1,211			2,529
Goodwill impairment		—			96,458			173,414
Net adjustments related to a terminated capacity reservation agreement		(1,253	)		885			51,864
Other expense (income)		2,216			1,926			(7,333	)
Non-GAAP operating income	$	177,911		$	212,214		$	236,522

GAAP net income (loss)	$	41,271		$	(17,435	)	$	(126,938	)
Stock-based compensation expense		28,384			38,181			21,755
Amortization of intangible assets		26,085			29,482			29,787
Restructuring-related charges		68,072			34,396			6,075
Acquisition and integration-related costs		1,382			1,211			2,529
Goodwill impairment		—			96,458			173,414
Net adjustments related to a terminated capacity reservation agreement		(1,253	)		885			51,864
Other expense (income)		600			(506	)		(12,252	)
(Gain) loss on investments		(1,721	)		780			464
Adjustment of income taxes		(10,067	)		(3,611	)		59,161
Non-GAAP net income	$	152,753		$	179,841		$	205,859

GAAP weighted-average outstanding diluted shares		95,031			94,886			97,152
Dilutive stock-based awards		—			867			666
Non-GAAP weighted-average outstanding diluted shares		95,031			95,753			97,818

Non-GAAP net income per share, diluted	$	1.61		$	1.88		$	2.10

QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)

	Three Months Ended
(in thousands, except percentages)	December 28, 2024					September 28, 2024					December 30, 2023
GAAP gross profit/margin	$	391,416		42.7	%	$	445,306		42.6	%	$	387,878		36.1	%
Stock-based compensation expense		5,742		0.6			6,047		0.6			5,575		0.5
Amortization of intangible assets		23,462		2.6			25,523		2.4			25,457		2.4
Restructuring-related charges		6,931		0.7			15,414		1.4			(250	)	—
Acquisition and integration-related costs		1		—			636		0.1			1		—
Net adjustments related to a terminated capacity reservation agreement		(1,253	)	(0.1	)		(885	)	(0.1	)		51,864		4.8
Non-GAAP gross profit/margin	$	426,299		46.5	%	$	492,041		47.0	%	$	470,525		43.8	%

	Three Months Ended
Non-GAAP Operating Income	December 28, 2024
(as a percentage of revenue)

GAAP operating income	5.8	%
Stock-based compensation expense	3.1
Amortization of intangible assets	2.8
Restructuring-related charges	7.4
Acquisition and integration-related costs	0.2
Net adjustments related to a terminated capacity reservation agreement	(0.1	)
Other expense	0.2
Non-GAAP operating income	19.4	%

	Three Months Ended
Free Cash Flow⁽¹⁾	December 28, 2024
(in millions)

Net cash provided by operating activities	$	214.1
Purchases of property and equipment		(37.8	)
Free cash flow	$	176.3

^{(1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.}

QORVO, INC. AND SUBSIDIARIES ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (In thousands) (Unaudited)

	Three Months Ended
	December 28, 2024		September 28, 2024		December 30, 2023
GAAP research and development expense	$	179,126	$	201,050	$	164,329
Less:
Stock-based compensation expense		13,650		13,468		11,830
Acquisition and integration-related costs		1		2		2
Non-GAAP research and development expense	$	165,475	$	187,580	$	152,497

	Three Months Ended
	December 28, 2024		September 28, 2024		December 30, 2023
GAAP selling, general and administrative expense	$	90,360	$	107,760	$	86,914
Less:
Stock-based compensation expense		8,985		18,488		4,336
Amortization of intangible assets		2,623		3,959		4,330
Acquisition and integration-related costs		—		1		—
Non-GAAP selling, general and administrative expense	$	78,752	$	85,312	$	78,248

	Three Months Ended
	December 28, 2024		September 28, 2024		December 30, 2023
GAAP other operating expense	$	68,905	$	126,821	$	178,204
Less:
Stock-based compensation expense		7		178		14
Restructuring-related charges		61,141		18,982		6,325
Acquisition and integration-related costs		1,380		572		2,526
Goodwill impairment		—		96,458		173,414
Other expense (income)		2,216		3,696		(7,333	)
Non-GAAP other operating expense	$	4,161	$	6,935	$	3,258

	Three Months Ended
	December 28, 2024		September 28, 2024		December 30, 2023
GAAP total operating expense	$	338,391	$	435,631	$	429,447
Less:
Stock-based compensation expense		22,642		32,134		16,180
Amortization of intangible assets		2,623		3,959		4,330
Restructuring-related charges		61,141		18,982		6,325
Acquisition and integration-related costs		1,381		575		2,528
Goodwill impairment		—		96,458		173,414
Other expense (income)		2,216		3,696		(7,333	)
Non-GAAP total operating expense	$	248,388	$	279,827	$	234,003

QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	December 28, 2024		March 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	769,432	$	1,029,258
Accounts receivable, net		427,863		412,960
Inventories		656,216		710,555
Other current assets		126,917		133,983
Assets of disposal group held for sale		116,435		159,278
Total current assets		2,096,863		2,446,034

Property and equipment, net		820,874		870,982
Goodwill		2,437,234		2,534,601
Intangible assets, net		332,338		509,383
Long-term investments		25,692		23,252
Other non-current assets		250,095		170,383
Total assets	$	5,963,096	$	6,554,635

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	551,676	$	589,760
Current portion of long-term debt		—		438,740
Other current liabilities		227,110		113,215
Liabilities of disposal group held for sale		29,075		88,372
Total current liabilities		807,861		1,230,087

Long-term debt		1,549,230		1,549,272
Other long-term liabilities		225,572		218,904
Total liabilities		2,582,663		2,998,263

Stockholders’ equity		3,380,433		3,556,372
Total liabilities and stockholders’ equity	$	5,963,096	$	6,554,635

At Qorvo^®
Doug DeLieto
VP, Investor Relations
1.336.678.7968

The MIL Network –

January 29, 2025

MIL-OSI: Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

WAUWATOSA, Wis., Jan. 28, 2025 (GLOBE NEWSWIRE) — Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $5.2 million, or $0.28 per diluted share, for the quarter ended December 31, 2024, compared to net loss of $40,000, or less than $0.01 per diluted share, for the quarter ended December 31, 2023. Net income per diluted share was $1.01 for the year ended December 31, 2024, compared to net income per diluted share of $0.46 for the year ended December 31, 2023.

“We are pleased with the company’s performance compared to the prior year and looking to build off of the positives from 2024,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “We achieved loan growth, achieved core deposit growth (excluding brokered certificates of deposit), and continued to maintain strong asset quality metrics. The interest rate environment created challenges for both the Community Banking and Mortgage Banking segments even with the 100 bps cut in the Federal Funds rate during the second half of the year. The Mortgage Banking segment remained profitable due in large part to our continued focus on cost control as funding volumes are still facing headwinds from the higher fixed-rate mortgage rates. Waterstone Financial, Inc. remained active in share repurchases and continued to pay out dividends, as we are committed to shareholder returns.”

Highlights of the Quarter Ended December 31, 2024

Waterstone Financial, Inc. (Consolidated)

Consolidated net income of Waterstone Financial, Inc. totaled $5.2 million for the quarter ended December 31, 2024, compared to a net loss of $40,000 for the quarter ended December 31, 2023.
Consolidated return on average assets was 0.94% for the quarter ended December 31, 2024, compared to (0.01)% for the quarter ended December 31, 2023.
Consolidated return on average equity was 6.05% for the quarter ended December 31, 2024, and (0.05)% for the quarter ended December 31, 2023.
Dividends declared during the quarter ended December 31, 2024, totaled $0.15 per common share.
During the quarter ended December 31, 2024, we repurchased approximately 194,000 shares at a cost (including the federal excise tax) of $2.8 million, or $14.43 per share.
Nonperforming assets as a percentage of total assets was 0.28% at December 31, 2024, 0.25% at September 30, 2024, and 0.23% at December 31, 2023.
Past due loans as a percentage of total loans was 0.95% at December 31, 2024, 0.63% at September 30, 2024, and 0.68% at December 31, 2023.
Book value per share was $17.53 at December 31, 2024, and $16.94 at December 31, 2023.

Community Banking Segment

Pre-tax income totaled $6.7 million for the quarter ended December 31, 2024, which represents a $1.4 million, or 26.0%, increase compared to $5.3 million for the quarter ended December 31, 2023.
Net interest income totaled $12.9 million for the quarter ended December 31, 2024, which represents a $830,000, or 6.9%, increase compared to $12.1 million for the quarter ended December 31, 2023.
Average loans held for investment totaled $1.68 billion during the quarter ended December 31, 2024, which represents an increase of $21.5 million, or 1.3%, compared to $1.66 billion for the quarter ended December 31, 2023. The increase was primarily due to increases in the construction, commercial real estate, and multi-family mortgages. Average loans held for investment decreased $6.3 million compared to $1.69 billion for the quarter ended September 30, 2024. The decrease was primarily due to decreases in construction and one- to four-family mortgages.
Net interest margin increased 17 basis points to 2.42% for the quarter ended December 31, 2024 compared to 2.25% for the quarter ended December 31, 2023, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale offset by a result of an increase in weighted average cost of deposits and borrowings as the federal funds rate increases resulted in increased funding rates. Net interest margin increased 29 basis points compared to 2.13% for the quarter ended September 30, 2024, primarily driven by an increase in weighted average yield on loans receivable and held for sale and a decrease in weighted average cost of borrowings.
Past due loans at the community banking segment totaled $12.8 million at December 31, 2024, $8.0 million at September 30, 2024, and $7.9 million at December 31, 2023.
The segment had a provision for credit losses related to funded loans of $61,000 for the quarter ended December 31, 2024, compared to a negative provision for credit losses related to funded loans of $17,000 for the quarter ended December 31, 2023. The current quarter increase was primarily due to an increase in the qualitative factors primarily related to increases in economic risks related to commercial real estate loans during the quarter offset by a decrease in historical loss rates. The provision for credit losses related to unfunded loan commitments was $270,000 for the quarter ended December 31, 2024, compared to a negative provision for credit losses related to unfunded loan commitments of $533,000 for the quarter ended December 31, 2023. The provision for credit losses related to unfunded loan commitments for the quarter ended December 31, 2024, was due primarily to an increase of construction loans that are currently waiting to be funded compared to the prior quarter end.
The efficiency ratio, a non-GAAP ratio, was 51.54% for the quarter ended December 31, 2024, compared to 63.26% for the quarter ended December 31, 2023.
Average core deposits (excluding brokered and escrow accounts) totaled $1.27 billion during the quarter ended December 31, 2024, an increase of $65.8 million, or 5.4%, compared to $1.21 billion during the quarter ended December 31, 2023. Average deposits increased $28.8 million, or 9.2% annualized, compared to $1.25 billion for the quarter ended September 30, 2024. The increases were primarily due to an increase in certificates of deposit balances. The segment had $94.3 million in brokered certificate of deposits at December 31, 2024.

Mortgage Banking Segment

Pre-tax loss totaled $625,000 for the quarter ended December 31, 2024, compared to a $6.0 million of pre-tax loss for the quarter ended December 31, 2023.
Loan originations increased $12.3 million, or 2.7%, to $470.7 million during the quarter ended December 31, 2024, compared to $458.4 million during the quarter ended December 31, 2023. Origination volume relative to purchase activity accounted for 82.1% of originations for the quarter ended December 31, 2024, compared to 95.7% of total originations for the quarter ended December 31, 2023.
Mortgage banking non-interest income increased $1.4 million, or 8.9%, to $17.5 million for the quarter ended December 31, 2024, compared to $16.0 million for the quarter ended December 31, 2023.
Gross margin on loans sold totaled 3.74% for the quarter ended December 31, 2024, compared to 3.51% for the quarter ended December 31, 2023.
Total compensation, payroll taxes and other employee benefits decreased $1.1 million, or 7.4%, to $13.8 million during the quarter ended December 31, 2024, compared to $14.9 million during the quarter ended December 31, 2023. The decrease primarily related to decreased salary expense, health insurance expense, and sign-on incentives driven by reduced employee headcount and fewer new branches added over the past year.

About Waterstone Financial, Inc.

Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank. WaterStone Bank was established in 1921 and offers a full suite of personal and business banking products. The Bank has branches in Wauwatosa/State St, Brookfield, Fox Point/North Shore, Franklin/Hales Corners, Germantown/Menomonee Falls, Greenfield/Loomis Rd, Milwaukee/Oklahoma Ave, Oak Creek/27th St, Oak Creek/Howell Ave, Oconomowoc/Lake Country, Pewaukee, Waukesha, West Allis/Greenfield Ave, and West Allis/National Ave, Wisconsin. WaterStone Bank is the parent company to Waterstone Mortgage, which has the ability to lend in 48 states. For more information about WaterStone Bank, go to http://www.wsbonline.com.

Forward-Looking Statements

This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.

Non-GAAP Financial Measures

Management uses non-GAAP financial information in its analysis of the Company’s performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhance comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.

Contact: Mark R. Gerke
Chief Financial Officer
414-459-4012
markgerke@wsbonline.com

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	For The Three Months Ended December 31,					For The Twelve Months Ended December 31,
	2024		2023			2024			2023
	(In Thousands, except per share amounts)
Interest income:
Loans	$	26,391	$	24,288		$	103,066		$	90,148
Mortgage-related securities		1,136		1,081			4,496			4,053
Debt securities, federal funds sold and short-term investments		1,525		1,325			5,606			5,007
Total interest income		29,052		26,694			113,168			99,208
Interest expense:
Deposits		11,410		8,253			40,573			25,738
Borrowings		4,807		6,685			26,427			23,255
Total interest expense		16,217		14,938			67,000			48,993
Net interest income		12,835		11,756			46,168			50,215
Provision (credit) for credit losses		367		(435	)		(168	)		656
Net interest income after provision (credit) for loan losses		12,468		12,191			46,336			49,559
Noninterest income:
Service charges on loans and deposits		626		328			2,060			1,819
Increase in cash surrender value of life insurance		407		337			1,969			1,710
Mortgage banking income		17,365		15,830			83,565			75,686
Other		607		381			1,708			1,970
Total noninterest income		19,005		16,876			89,302			81,185
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		18,423		20,061			81,078			84,096
Occupancy, office furniture, and equipment		1,579		2,021			7,573			8,323
Advertising		727		1,030			3,554			3,779
Data processing		1,233		1,212			4,978			4,653
Communications		224		269			922			988
Professional fees		1,114		907			3,184			2,686
Real estate owned		12		1			26			4
Loan processing expense		486		756			3,090			3,428
Other		1,469		3,405			7,231			11,755
Total noninterest expenses		25,267		29,662			111,636			119,712
Income (loss) before income taxes (benefit)		6,206		(595	)		24,002			11,032
Income tax expense (benefit)		996		(555	)		5,314			1,657
Net income (loss)	$	5,210	$	(40	)	$	18,688		$	9,375
Income (loss) per share:
Basic	$	0.28	$	(0.00	)	$	1.01		$	0.47
Diluted	$	0.28	$	(0.00	)	$	1.01		$	0.46
Weighted average shares outstanding:
Basic		18,335		19,380			18,556			20,158
Diluted		18,396		19,398			18,589			20,196

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	December 31,			December 31,
	2024			2023
	(Unaudited)
Assets	(In Thousands, except per share amounts)
Cash	$	35,182		$	30,667
Federal funds sold		4,302			5,493
Interest-earning deposits in other financial institutions and other short term investments		277			261
Cash and cash equivalents		39,761			36,421
Securities available for sale (at fair value)		208,549			204,907
Loans held for sale (at fair value)		135,909			164,993
Loans receivable		1,680,576			1,664,215
Less: Allowance for credit losses (“ACL”) – loans		18,247			18,549
Loans receivable, net		1,662,329			1,645,666

Office properties and equipment, net		19,389			19,995
Federal Home Loan Bank stock (at cost)		20,295			20,880
Cash surrender value of life insurance		74,612			67,859
Real estate owned, net		505			254
Prepaid expenses and other assets		48,259			52,414
Total assets	$	2,209,608		$	2,213,389

Liabilities and Shareholders’ Equity
Liabilities:
Demand deposits	$	171,115		$	187,107
Money market and savings deposits		283,243			273,233
Time deposits		905,539			730,284
Total deposits		1,359,897			1,190,624

Borrowings		446,519			611,054
Advance payments by borrowers for taxes		5,630			6,607
Other liabilities		58,427			61,048
Total liabilities		1,870,473			1,869,333

Shareholders’ equity:
Preferred stock		–			–
Common stock		193			203
Additional paid-in capital		91,214			103,908
Retained earnings		277,196			269,606
Unearned ESOP shares		(10,682	)		(11,869	)
Accumulated other comprehensive loss, net of taxes		(18,786	)		(17,792	)
Total shareholders’ equity		339,135			344,056
Total liabilities and shareholders’ equity	$	2,209,608		$	2,213,389

Share Information
Shares outstanding		19,343			20,315
Book value per share	$	17.53		$	16.94

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in Thousands, except per share amounts)
Condensed Results of Operations:
Net interest income	$	12,835		$	11,517		$	10,679		$	11,137		$	11,756
Provision (credit) for credit losses		367			(377	)		(225	)		67			(435	)
Total noninterest income		19,005			22,552			26,497			21,248			16,876
Total noninterest expense		25,267			28,560			30,259			27,550			29,662
Income (loss) before income taxes (benefit)		6,206			5,886			7,142			4,768			(595	)
Income tax expense (benefit)		996			1,158			1,430			1,730			(555	)
Net income (loss)	$	5,210		$	4,728		$	5,712		$	3,038		$	(40	)
Income (loss) per share – basic	$	0.28		$	0.26		$	0.31		$	0.16		$	(0.00	)
Income (loss) per share – diluted	$	0.28		$	0.26		$	0.31		$	0.16		$	(0.00	)
Dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15

Performance Ratios (annualized):
Return on average assets – QTD		0.94	%		0.83	%		1.02	%		0.56	%		-0.01	%
Return on average equity – QTD		6.05	%		5.55	%		6.84	%		3.56	%		-0.05	%
Net interest margin – QTD		2.42	%		2.13	%		2.01	%		2.15	%		2.25	%

Return on average assets – YTD		0.84	%		0.81	%		0.79	%		0.56	%		0.44	%
Return on average equity – YTD		5.48	%		5.30	%		5.17	%		3.56	%		2.62	%
Net interest margin – YTD		2.17	%		2.09	%		2.08	%		2.15	%		2.46	%

Asset Quality Ratios:
Past due loans to total loans		0.95	%		0.63	%		0.76	%		0.64	%		0.68	%
Nonaccrual loans to total loans		0.34	%		0.32	%		0.33	%		0.29	%		0.29	%
Nonperforming assets to total assets		0.28	%		0.25	%		0.25	%		0.23	%		0.23	%
Allowance for credit losses – loans to loans receivable		1.09	%		1.07	%		1.10	%		1.10	%		1.11	%

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Average balances	(Dollars in Thousands)
Interest-earning assets
Loans receivable and held for sale	$	1,819,574		$	1,870,627		$	1,859,608		$	1,805,102		$	1,797,988
Mortgage related securities		168,521			170,221			171,895			172,077			172,863
Debt securities, federal funds sold and short term investments		124,658			115,270			107,992			110,431			106,504
Total interest-earning assets		2,112,753			2,156,118			2,139,495			2,087,610			2,077,355
Noninterest-earning assets		100,627			104,600			104,019			103,815			105,073
Total assets	$	2,213,380		$	2,260,718		$	2,243,514		$	2,191,425		$	2,182,428

Interest-bearing liabilities
Demand accounts	$	92,247		$	89,334		$	91,300		$	87,393		$	91,868
Money market, savings, and escrow accounts		306,478			304,116			293,483			281,171			302,121
Certificates of deposit – retail		810,340			786,228			758,252			739,543			735,418
Certificates of deposit – brokered		59,254			–			–			–			–
Total interest-bearing deposits		1,268,319			1,179,678			1,143,035			1,108,107			1,129,407
Borrowings		464,964			600,570			622,771			602,724			549,210
Total interest-bearing liabilities		1,733,283			1,780,248			1,765,806			1,710,831			1,678,617
Noninterest-bearing demand deposits		87,889			91,532			93,637			92,129			102,261
Noninterest-bearing liabilities		49,645			49,787			48,315			45,484			56,859
Total liabilities		1,870,817			1,921,567			1,907,758			1,848,444			1,837,737
Equity		342,563			339,151			335,756			342,981			344,691
Total liabilities and equity	$	2,213,380		$	2,260,718		$	2,243,514		$	2,191,425		$	2,182,428

Average Yield/Costs (annualized)
Loans receivable and held for sale		5.75	%		5.65	%		5.54	%		5.46	%		5.36	%
Mortgage related securities		2.67	%		2.66	%		2.63	%		2.57	%		2.48	%
Debt securities, federal funds sold and short term investments		4.85	%		5.05	%		4.82	%		4.82	%		4.94	%
Total interest-earning assets		5.46	%		5.39	%		5.27	%		5.18	%		5.10	%

Demand accounts		0.11	%		0.11	%		0.11	%		0.11	%		0.11	%
Money market and savings accounts		2.00	%		1.94	%		1.89	%		1.79	%		1.64	%
Certificates of deposit – retail		4.53	%		4.54	%		4.41	%		4.19	%		3.76	%
Certificates of deposit – brokered		4.18	%		0.00	%		0.00	%		0.00	%		0.00	%
Total interest-bearing deposits		3.58	%		3.53	%		3.42	%		3.26	%		2.90	%
Borrowings		4.11	%		4.77	%		4.92	%		4.54	%		4.83	%
Total interest-bearing liabilities		3.72	%		3.95	%		3.95	%		3.71	%		3.53	%

COMMUNITY BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest income	$	12,886		$	12,250		$	11,234		$	11,598		$	12,056
Provision (credit) for credit losses		331			(302	)		(279	)		105			(550	)
Total noninterest income		1,595			1,227			1,491			990			894
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		4,883			5,326			5,116			5,360			5,397
Occupancy, office furniture and equipment		825			904			983			1,000			916
Advertising		204			311			229			174			363
Data processing		691			720			687			693			626
Communications		89			80			72			65			75
Professional fees		196			190			177			208			186
Real estate owned		12			–			1			13			1
Loan processing expense		–			–			–			–			–
Other		563			602			672			691			628
Total noninterest expense		7,463			8,133			7,937			8,204			8,192
Income before income taxes		6,687			5,646			5,067			4,279			5,308
Income tax expense		1,399			941			718			1,639			1,234
Net income	$	5,288		$	4,705		$	4,349		$	2,640		$	4,074

Efficiency ratio – QTD (non-GAAP)		51.54	%		60.35	%		62.37	%		65.17	%		63.26	%
Efficiency ratio – YTD (non-GAAP)		59.58	%		62.58	%		63.77	%		65.17	%		56.86	%

MORTGAGE BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest loss	$	(92	)	$	(760	)	$	(552	)	$	(541	)	$	(367	)
Provision (credit) for credit losses		36			(75	)		54			(38	)		115
Total noninterest income		17,455			21,386			25,081			20,328			16,028
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		13,781			15,930			16,886			14,756			14,881
Occupancy, office furniture and equipment		754			953			1,046			1,108			1,105
Advertising		523			615			758			740			667
Data processing		542			570			549			508			583
Communications		135			152			168			161			194
Professional fees		917			379			569			520			704
Real estate owned		–			–			–			–			–
Loan processing expense		486			697			861			1,046			756
Other		814			1,261			1,641			617			2,701
Total noninterest expense		17,952			20,557			22,478			19,456			21,591
(Loss) income before income taxes (benefit) expense		(625	)		144			1,997			369			(6,045	)
Income tax (benefit) expense		(428	)		194			684			71			(1,827	)
Net (loss) income	$	(197	)	$	(50	)	$	1,313		$	298		$	(4,218	)

Efficiency ratio – QTD (non-GAAP)		103.39	%		99.67	%		91.64	%		98.33	%		137.86	%
Efficiency ratio – YTD (non-GAAP)		97.74	%		96.23	%		94.62	%		98.33	%		116.99	%

Loan originations	$	470,650		$	558,729		$	634,109		$	485,109		$	458,363
Purchase		82.1	%		88.9	%		92.7	%		93.0	%		95.7	%
Refinance		17.9	%		11.1	%		7.3	%		7.0	%		4.3	%
Gross margin on loans sold⁽¹⁾		3.74	%		3.83	%		3.93	%		4.10	%		3.51	%

⁽¹⁾ Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations

The MIL Network –

January 29, 2025

MIL-OSI: Micron Announces Investor Event

Source: GlobeNewswire (MIL-OSI)

BOISE, Idaho, Jan. 28, 2025 (GLOBE NEWSWIRE) — Micron Technology, Inc. (Nasdaq: MU) announced today that company executives will participate at the Wolfe Research Auto, Auto Tech and Semiconductor Conference in New York, New York on Wednesday, February 12, at 6:50 a.m. Mountain time.

Live webcasts and subsequent replays of presentations can be accessed from Micron’s Investor Relations website at investors.micron.com/.

About Micron Technology, Inc.
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit micron.com.

© 2025 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject to change without notice. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners.

Micron Media Relations Contact
Mark Plungy
Micron Technology, Inc.
+1 (408) 203-2910
mplungy@micron.com

Micron Investor Relations Contact
Satya Kumar
Micron Technology, Inc.
+1 (408) 450-6199
satyakumar@micron.com

The MIL Network –

January 29, 2025

MIL-OSI: Solana Based Meme Coin Launchpad Solana.Pattie.Meme Goes Live

Source: GlobeNewswire (MIL-OSI)

Birmingham, UK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Pattie.Meme the BSC based meme Launchpad is pleased to announce the Solana Based Launchpad was added and it goes live today at 1:00 pm UTC. The highly anticipated meme coin website is set to democratise the way people can launch, use, engage with and trade meme coins, leveraging off the speed and robustness of Solana, the fastest and most secure blockchain currently in existence.

Meme coins have become increasingly popular for users to design their own pieces of digital scarcity, allowing users to own and trade their tokens just as you would with physical assets such as sticker trading cards.

Solana.Pattie.Meme has been built to be the ultimate destination for meme coin creators and enthusiasts, with security at the heart of the platform. Not only is it seamless for anyone to launch their own digital asset, but user tokens are also protected with the aim of creating longer-term value.

Solana.Pattie.Meme is underpinned by the PATTIE cryptocurrency and has been built specifically to eliminate the risk of developers launching tokens that are subject to “rug pulls”. This is achieved by ensuring newly launched token liquidity is locked and burned and automatically deployed onto Raydium once a market capitalisation of $100k , $17k of liquidity is then deposited in Raydium and burned. In the near future Pattieswap will launch soon their own Solana Based Swap.

Revenue generated from fees will be used to buy back and burn the native PATTIE token, making it a deflationary asset that is designed to further enhance the value of the ecosystem.

About Pattie.Meme Solana

Solana.Pattie.Meme is at the forefront of meme coin generation allowing users to launch their very own token for as little as $1.25 (0.0055 SOL) Whether it is a meme coin based on a frog, mouse or anything else, Solana.Pattie.Meme facilitates the creation of assets with user protection in mind. Pattie.Meme brings security to people who want to partake in the rapidly growing digital economy.

SOL: https://solana.pattie.meme
BSC: https://pattie.meme
Telegram: https://t.me/pattiememe

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

The MIL Network –

January 29, 2025

MIL-OSI: Nokia Corporation: Repurchase of own shares on 28.01.2025

Source: GlobeNewswire (MIL-OSI)

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

Nokia Corporation: Repurchase of own shares on 28.01.2025

Espoo, Finland – On 28 January 2025 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

Trading venue (MIC Code)	Number of shares	Weighted average price / share, EUR*
XHEL	872,093	4.32
CEUX	–	–
BATE	–	–
AQEU	–	–
TQEX	–	–
Total	872,093	4.32

* Rounded to two decimals

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

Total cost of transactions executed on 28 January 2025 was EUR 3,763,605. After the disclosed transactions, Nokia Corporation holds 233,414,712 treasury shares.

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

On behalf of Nokia Corporation

BofA Securities Europe SA

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

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

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

Inquiries:

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

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

Attachment

Daily Report 2025-01-28

The MIL Network –

January 29, 2025

MIL-OSI: Discount Doctor to Visit United Kingdom in Support of Investment Trusts

Source: GlobeNewswire (MIL-OSI)

RYE, N.Y., Jan. 28, 2025 (GLOBE NEWSWIRE) — David Schachter, Senior Vice President of GAMCO Investors, Inc., will visit the United Kingdom to convey support for the British investment trust industry.

With over 40 years of experience exclusively with retail, long term, closed-end fund investors, Mr. Schachter, a most senior and experienced veteran of the U.S. Closed End Fund industry, was recently given the title of Discount Doctor by the Trustees of The GAMCO Natural Resources, Gold & Income Trust (GNT), which trades on the NYSE.

Mr. Schachter said, “The way I see it, the United States owes a debt to the British Investment Trust Industry, which helped build our railroads in the 1800s. Last week in his inauguration speech, President Trump spoke of America’s achievements stating, ‘In America, the impossible is what we do best…Together they laid down the railroads …and triumphed over every single challenge that they faced.’”

During the 19^th century, capital was raised through closed-end funds. These funds helped build the railroads, which linked the American continent from sea to sea and led to the nation’s economic success.

Today, in the early 21^st century, closed-end funds are being threatened for elimination by hedged activists for short-term and short-sighted value extraction.

“Closed-end funds are a metaphor for long-term, patient capital, but they also represent freedom for investors who, in a sector where mass redemptions could force portfolio managers to sell, is an essential ability to those who may not want to be herded into selling.”

Mr. Schachter plans to visit the offices of the Association of Investment Companies (AIC) and speak with the press and interested U.K. investors.

He remarked that recent activism is emblematic of short-termism and notes activist claims of being aligned with “Mom and Pop” investors as being absurd. “When it comes to activism, the playing field isn’t level at all…unlike Mom and Pop, sophisticated activists are hedged on a fund’s underlying portfolio.” Schachter commented, “As the Discount Doctor, it is critical to cure the ill without killing the patient in the process.”

Financial professionals and investors are invited to contact Mr. Schachter directly at (914) 921-5057 or (800) GABELLI.

Gabelli Funds, LLC is the adviser to thirteen closed-end funds which trade on the NYSE: Gabelli Equity Trust (NYSE: GAB), Gabelli Convertible & Income Securities Fund (NYSE: GCV), Gabelli Multimedia Trust (NYSE: GGT), Gabelli Utility Trust (NYSE: GUT), Gabelli Dividend & Income Trust (NYSE: GDV), Gabelli Global Utility & Income Trust (NYSE American: GLU), GAMCO Global Gold Natural Resources & Income Trust (NYSE American: GGN), The GDL Fund (NYSE: GDL), Gabelli Healthcare & Wellness^R^X Trust (NYSE: GRX), GAMCO Natural Resources, Gold & Income Trust (NYSE: GNT), Gabelli Global Small and Mid-Cap Value Trust (NYSE: GGZ), Bancroft Fund (NYSE American: BCV) and Ellsworth Growth & Income Fund (NYSE American: ECF). As of December 31, 2024, the thirteen Gabelli closed-end funds had total assets of $7.3 billion.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a Fund before investing. For more information regarding the Funds, call:

David Schachter
(914) 921-5057

A Fund’s NAV per share will fluctuate with changes in the market value of the Fund’s portfolio securities. Stocks are subject to market, economic, and business risks that cause their prices to fluctuate. Investors acquire shares of the Fund on a securities exchange at market value, which fluctuates according to the dynamics of supply and demand. When Fund shares are sold, they may be worth more or less than their original cost. Consequently, you can lose money by investing in a Fund.

The MIL Network –

January 29, 2025

MIL-OSI: DIAGNOS to Present at The Microcap Conference 2025

Source: GlobeNewswire (MIL-OSI)

BROSSARD, Quebec, Jan. 28, 2025 (GLOBE NEWSWIRE) — Diagnos Inc. (“DIAGNOS” or the “Corporation”) (TSX Venture: ADK, OTCQB: DGNOF, FWB: 4D4A), a pioneer in early detection of critical health issues through the use of its FLAIRE platform based on Artificial Intelligence (AI), is pleased to announce its participation in The Microcap Conference 2025, the premier event for growth-focused companies and investors. The conference will take place January 28-30, 2025, at the Borgata Hotel Spa & Casino in Atlantic City, NJ.

Details of the presentation:

Event:	The Microcap Conference
Date and Time:	January 29, 2025, at 4:30 p.m., ET
Location:	Borgata Hotel Casino & Spa, Studio C, Atlantic City, NJ
Presenter:	André Larente, Chief Executive Officer

DIAGNOS will engage in one-on-one meetings with institutional and individual investors to discuss the Company’s recent developments, growth strategy, and investment opportunities. This event provides a unique platform to highlight DIAGNOS’ AI technology and its vision for disrupting medical detection landscape.

“Our Investor Relations strategy is to connect with U.S. investors who recognize the importance of innovation in healthcare. This event provides an excellent opportunity to increase awareness with family offices, wealth management advisors, and high-net-worth individuals. With expected deployments with customers, as well as a partnership with the largest eyecare company in the world that validated our technology and will commercialize to its customer base, 2025 could be a milestone year for DIAGNOS,” said André Larente, CEO of DIAGNOS.

To register for the conference or one-on-one meeting, visit

https://themicrocapconference.com/tickets/

About The Microcap Conference 2025

The Microcap Conference is the largest independent microcap event in the U.S., bringing together top-tier investors and executives from microcap companies. The event offers a platform for companies to showcase their value propositions through presentations, one-on-one meetings, and networking opportunity.

The 2025 event will feature:

Keynote Speakers: Renowned industry figures, including Jon Ledecky, Co-Owner of the New York Islanders, who will engage in a fireside chat with CNBC’s Bob Pisani, and Tom Gardner, CEO of Motley Fool, who will share insights on investing, market trends, and entrepreneurial success.

Expert Panels and Presentations: Financial commentators Ron Insana (CNBC) and Charlie Gasparino (FOX Business) will cover critical topics for the US equity markets, from capital formation to regulatory updates and market trends.

Entertainment Headliner: A special performance by Tom Papa, celebrated comedian and host of Netflix specials, ensuring a memorable evening for attendees.

Hosted by DealFlow Events, The Microcap Conference is renowned for its blend of high-quality content, engaging networking, and exceptional entertainment.

About DIAGNOS
DIAGNOS is a publicly traded Canadian corporation dedicated to early detection of critical health problems based on its FLAIRE Artificial Intelligence (AI) platform. FLAIRE allows for quick modifying and developing of applications such as CARA (Computer Assisted Retina Analysis). CARA’s image enhancement algorithms provide sharper, clearer and easier-to-analyze retinal images. CARA is a cost-effective tool for real-time screening of large volumes of patients.

Additional information is available at www.diagnos.ca and www.sedarplus.com.

This news release contains forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in these statements. DIAGNOS disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.

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

The MIL Network –

January 29, 2025

Category: GlobeNewswire