GlobeNewswire – Page 619

MIL-OSI: C&F Financial Corporation Announces Net Income for 2024

Source: GlobeNewswire (MIL-OSI)

TOANO, Va., Jan. 28, 2025 (GLOBE NEWSWIRE) — C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported consolidated net income of $6.0 million for the fourth quarter of 2024, compared to $5.1 million for the fourth quarter of 2023. The Corporation reported consolidated net income of $19.9 million for the year ended December 31, 2024, compared to $23.7 million for the year ended December 31, 2023. The following table presents selected financial performance highlights for the periods indicated:


	For The Quarter Ended						For the Year Ended
Consolidated Financial Highlights (unaudited)	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Consolidated net income (000’s)	$	6,029		$	5,088		$	19,918		$	23,746

Earnings per share – basic and diluted	$	1.87		$	1.50		$	6.01		$	6.92

Annualized return on average equity		10.60	%		10.06	%		9.02	%		11.68	%
Annualized return on average tangible common equity¹		12.17	%		11.74	%		10.37	%		13.58	%
Annualized return on average assets		0.94	%		0.85	%		0.80	%		0.99	%

_________________
¹ For more information about these non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles (GAAP), please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures,” below.

“While the past year’s financial performance reflected the challenges of a dynamic interest rate environment, our fourth quarter earnings were solid, and we are optimistic of earnings momentum heading into the coming year,” commented Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation. “Our net interest margin was down for 2024, however, it stabilized in the fourth quarter, and we are cautiously optimistic about margin performance in 2025. The community banking segment delivered solid loan and deposit growth across all markets. Despite facing headwinds from higher mortgage rates and a low inventory of homes for sale, the mortgage banking segment increased its loan production and net income over 2023. While higher charge-offs weighed on profitability at the consumer finance segment, we were able to achieve significant operational efficiencies during 2024. Despite obstacles and adversities that continually confront the banking industry in general, we believe C&F is well-positioned for the future.”

Key highlights for the fourth quarter and the year ended December 31, 2024 are as follows.

Community banking segment loans grew $21.5 million, or 6.0 percent annualized, and $180.0 million, or 14.1 percent, compared to September 30, 2024 and December 31, 2023, respectively;
Consumer finance segment loans decreased $10.5 million, or 8.8 percent annualized, and $1.7 million, or less than one percent, compared to September 30, 2024 and December 31, 2023, respectively;
Deposits increased $35.0 million, or 6.6 percent annualized, and $104.7 million, or 5.1 percent, compared to September 30, 2024 and December 31, 2023, respectively;
Consolidated annualized net interest margin was 4.13 percent for the fourth quarter of 2024 compared to 4.17 percent for the fourth quarter of 2023 and 4.13 percent in the third quarter of 2024. Consolidated net interest margin was 4.12 percent for the year ended December 31, 2024 compared to 4.31 percent for the year ended December 31, 2023;
The community banking segment recorded no provision for credit losses for the fourth quarter of 2024 and $75,000 for the fourth quarter of 2023, and recorded provision for credit losses of $1.7 million and $1.6 million for the years ended December 31, 2024 and 2023, respectively;
The consumer finance segment recorded provision for credit losses of $3.5 million and $2.4 million for the fourth quarters of 2024 and 2023, respectively, and recorded provision for credit losses of $11.6 million and $6.7 million for the years ended December 31, 2024 and 2023, respectively;
The consumer finance segment experienced net charge-offs at an annualized rate of 3.40 percent of average total loans for the fourth quarter of 2024, compared to 2.72 percent for the fourth quarter of 2023. Net charge-offs as a percentage of average total loans were 2.62 percent for the year ended December 31, 2024, compared to 1.99 percent for the year ended December 31, 2023; and
Mortgage banking segment loan originations increased $32.2 million, or 32.8 percent, to $130.4 million for the fourth quarter of 2024 compared to the fourth quarter of 2023 and increased $29.0 million, or 5.8 percent, to $527.8 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.

Community Banking Segment. The community banking segment reported net income of $6.4 million for the fourth quarter of 2024, compared to $5.2 million for the same period of 2023, due primarily to:

higher interest income resulting from higher average balances of loans and the effects of higher interest rates on asset yields, offset in part by lower average balances of securities;
higher other income from bank owned life insurance policies; and
lower salaries and employee benefits expense due primarily to a reduction in headcount through attrition;

partially offset by:

higher interest expense due primarily to higher rates on deposits and higher average balances of interest-bearing deposits, offset in part by lower average balances of borrowings.

The community banking segment reported net income of $20.3 million for the year ended December 31, 2024, compared to $22.9 million for the same period of 2023, due primarily to:

higher interest expense resulting from higher rates on deposits and higher average balances of interest-bearing deposits, partially offset by lower average balances of borrowings;
higher data processing and consulting costs related to investments in operational technology to improve resilience, efficiency and customer experience;
higher occupancy expense related to branch network improvements, including the relocation of a branch and the opening of a new branch; and
higher salaries and employee benefits expense, which have generally increased in line with market conditions, offset in part by a reduction in headcount through attrition;

partially offset by:

higher interest income resulting from higher average balances of loans and the effects of higher interest rates on asset yields, offset in part by lower average balances of securities;
higher wealth management services income due primarily to higher assets under management;
higher other income from bank owned life insurance policies; and
higher investment income from other equity investments.

Average loans increased $180.8 million, or 14.4 percent, for the fourth quarter of 2024 and increased $164.0 million, or 13.5 percent, for the year ended December 31, 2024, compared to the same periods in 2023, due primarily to growth in the construction, commercial real estate, and residential mortgage segments of the loan portfolio. Average deposits increased $140.2 million, or 6.9 percent, for the fourth quarter of 2024 and increased $110.8 million, or 5.5 percent, for the year ended December 31, 2024, compared to the same periods in 2023, due primarily to higher balance of time deposits, partially offset by decreases in savings and interest-bearing demand deposits and noninterest-bearing demand deposits amid increased competition for deposits and the higher interest rate environment.

Average loan yields and average costs of interest-bearing deposits were higher for the fourth quarter and the year ended December 31, 2024, compared to the same periods of 2023, due primarily to the effects of the higher interest rate environment.

The community banking segment’s nonaccrual loans were $333,000 at December 31, 2024 compared to $406,000 at December 31, 2023. The community banking segment recorded no provision for credit losses for the fourth quarter of 2024 and $1.7 million for the year ended December 31, 2024 compared to $75,000 and $1.6 million for the same periods of 2023. At December 31, 2024, the allowance for credit losses increased to $17.4 million, compared to $16.1 million at December 31, 2023. The allowance for credit losses as a percentage of total loans decreased to 1.20 percent at December 31, 2024 from 1.26 percent at December 31, 2023. The increases in provision and allowance for credit losses are due primarily to growth in the loan portfolio. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected.

Mortgage Banking Segment. The mortgage banking segment reported net income of $87,000 and $1.1 million for the fourth quarter and year ended December 31, 2024, respectively, compared to a net loss of $103,000 and net income of $465,000 for the same periods of 2023, due primarily to:

higher gains on sales of loans and higher mortgage banking fee income due to higher volume of mortgage loan originations; and
lower occupancy expenses due to an effort to reduce overhead costs;

partially offset by:

higher variable expenses tied to mortgage loan origination volume such as commissions and bonuses, reported in salaries and employee benefits; and
lower reversal of provision for indemnifications.

The sustained elevated level of mortgage interest rates, combined with higher home prices and lower levels of inventory, led to a level of mortgage loan originations in 2024 and 2023 for the industry that is lower than recent historical averages. Mortgage loan originations for the mortgage banking segment were $130.4 million for the fourth quarter of 2024, comprised of $15.9 million refinancings and $114.5 million home purchases, compared to $98.2 million, comprised of $12.5 million refinancings and $85.7 million home purchases, for the same period in 2023. Mortgage loan originations for the mortgage banking segment were $527.8 million for the year ended December 31, 2024, comprised of $50.2 million refinancings and $477.6 million home purchases, compared to $498.8 million, comprised of $52.7 million refinancings and $446.1 million home purchases, for the same period in 2023. Mortgage loan originations in the fourth quarter of 2024 decreased $26.6 million compared to the third quarter of 2024 due in part to normal industry seasonal fluctuations. Mortgage loan segment originations include originations of loans sold to the community banking segment, at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals.

During the fourth quarter and year ended December 31, 2024, the mortgage banking segment recorded a reversal of provision for indemnification losses of $85,000 and $460,000, respectively, compared to a reversal of provision for indemnification losses of $150,000 and $585,000 in the same periods of 2023. The mortgage banking segment increased reserves for indemnification losses during 2020 based on widespread forbearance on mortgage loans and economic uncertainty related to the COVID-19 pandemic. The release of indemnification reserves in 2024 and 2023 was due primarily to improvement in the mortgage banking segment’s assessment of borrower payment performance, lower volume of mortgage loan originations in recent years and other factors affecting expected losses on mortgage loans sold in the secondary market, such as time since origination. Management believes that the indemnification reserve is sufficient to absorb losses related to loans that have been sold in the secondary market.

Consumer Finance Segment. The consumer finance segment reported net income of $272,000 and $1.4 million for the fourth quarter and year ended December 31, 2024, respectively, compared to net income of $618,000 and $2.9 million for the same periods in 2023. The decreases in consumer finance segment net income were due primarily to:

higher provision for credit losses due primarily to increased net charge-offs; and
higher interest expense on variable rate borrowings from the community banking segment as a result of higher interest rates and higher average balances of borrowings;

partially offset by:

higher interest income resulting from the effects of higher interest rates on loan yields and higher average balances of loans;
lower salaries and employee benefits expense due to an effort to reduce overhead costs; and
lower loan processing and collection expenses due primarily to efficiency initiatives within the collections department.

Average loans increased $2.5 million, or one percent, for the fourth quarter of 2024 and increased $2.9 million, or one percent, for the year ended December 31, 2024, compared to the same periods in 2023. The consumer finance segment experienced net charge-offs at a rate of 2.62 percent of average total loans for the year ended December 31, 2024, compared to 1.99 percent for the year ended December 31, 2023, due primarily to an increase in the number of delinquent loans, the number of repossessions, and the average amount charged-off when a loan was uncollectable. Higher amounts charged-off per loan resulted in part from larger loan amounts, generally purchased in 2020 and 2021 when automobile values were higher, being charged-off in the current year, with the wholesale values of automobiles having declined since then. At December 31, 2024, total delinquent loans as a percentage of total loans was 3.90 percent, compared to 4.09 percent at December 31, 2023, and 3.49 percent at September 30, 2024.

The consumer finance segment, at times, offers payment deferrals as a portfolio management technique to achieve higher ultimate cash collections on select loan accounts. A significant reliance on deferrals as a means of managing collections may result in a lengthening of the loss confirmation period, which would increase expectations of credit losses inherent in the portfolio. Average amounts of payment deferrals of automobile loans on a monthly basis, which are not included in delinquent loans, were 2.11 percent and 1.80 percent of average automobile loans outstanding during the fourth quarter and year ended December 31, 2024, respectively, compared to 2.02 percent and 1.87 percent during the same periods during 2023. The allowance for credit losses was $22.7 million at December 31, 2024 and $23.6 million at December 31, 2023. The allowance for credit losses as a percentage of total loans decreased to 4.86 percent at December 31, 2024 from 5.03 percent at December 31, 2023, primarily as a result of growth in loans with stronger credit quality while balances of loans with lower credit quality declined. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected. If loan performance deteriorates resulting in further elevated delinquencies or net charge-offs, the provision for credit losses may increase in future periods.

Liquidity. The objective of the Corporation’s liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $250,000. As of December 31, 2024, the Corporation’s uninsured deposits were approximately $640.2 million, or 29.5 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $455.2 million, or 21.0 percent of total deposits as of December 31, 2024. The Corporation’s liquid assets, which include cash and due from banks, interest-bearing deposits at other banks and nonpledged securities available for sale, were $288.1 million and borrowing availability was $606.2 million as of December 31, 2024, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $439.1 million as of December 31, 2024.

In addition to deposits, the Corporation utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home loan Bank of Atlanta (FHLB) may be used to fund the Corporation’s day-to-day operations. Short-term borrowings also include securities sold under agreements to repurchase. Total borrowings increased to $122.6 million at December 31, 2024 from $109.5 million at December 31, 2023 due primarily to higher long-term borrowings from the FHLB used in part to fund loan growth.

Additional sources of liquidity available to the Corporation include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.

Capital and Dividends. The Corporation declared cash dividends during the year ended December 31, 2024 totaling $1.76 per share, including a quarterly cash dividend of 44 cents per share during the fourth quarter of 2024, which was paid on January 1, 2025. These dividends represent a payout ratio of 23.5 percent of earnings per share for the fourth quarter of 2024 and 29.3 percent of earnings per share for the year ended December 31, 2024. The Board of Directors of the Corporation continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.

Total consolidated equity increased $9.5 million at December 31, 2024, compared to December 31, 2023, due primarily to net income and lower unrealized losses in the market value of securities available for sale, which are recognized as a component of other comprehensive income, partially offset by share repurchases and dividends paid on the Corporation’s common stock. The Corporation’s securities available for sale are fixed income debt securities and their unrealized loss position is a result of rising market interest rates since they were purchased. The Corporation expects to recover its investments in debt securities through scheduled payments of principal and interest. Unrealized losses are not expected to affect the earnings or regulatory capital of the Corporation or C&F Bank. The accumulated other comprehensive loss related to the Corporation’s securities available for sale, net of deferred income taxes, decreased to $23.7 million at December 31, 2024 compared to $25.0 million at December 31, 2023 due primarily to fluctuations in debt security market interest rates and a decrease in the balance of securities available for sale.

As of December 31, 2024, the most recent notification from the FDIC categorized the C&F Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at December 31, 2024, C&F Bank was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, C&F Bank must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Corporation and C&F Bank exceeded these ratios at December 31, 2024. For additional information, see “Capital Ratios” below. The above mentioned ratios are not impacted by unrealized losses on securities available for sale. In the event that all of these unrealized losses became realized into earnings, the Corporation and C&F Bank would both continue to exceed minimum capital requirements, including the capital conservation buffer, and be considered well capitalized.

In December 2023, the Board of Directors authorized a program, effective January 1, 2024 through December 31, 2024, to repurchase up to $10.0 million of the Corporation’s common stock (the 2024 Repurchase Program). During the fourth quarter and year ended December 31, 2024, the Corporation repurchased 11,100 shares, or $679,000, and 160,694 shares, or $7.9 million, of its common stock under the 2024 Repurchase Program, respectively. In December 2024, the Board of Directors authorized a new program, effective January 1, 2025 through December 31, 2025, to repurchase up to $5.0 million of the Corporation’s common stock through December 31, 2025 (the 2025 Repurchase Program).

About C&F Financial Corporation. The Corporation’s common stock is listed for trading on The Nasdaq Stock Market under the symbol CFFI. The common stock closed at a price of $75.40 per share on January 27, 2025. At December 31, 2024, the book value per share of the Corporation was $70.00 and the tangible book value per share was $61.86. For more information about the Corporation’s tangible book value per share, which is not calculated in accordance with GAAP, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures,” below.

C&F Bank operates 31 banking offices and four commercial loan offices located throughout eastern and central Virginia and offers full wealth management services through its subsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services through offices located in Virginia and the surrounding states. C&F Finance Company provides automobile, marine and recreational vehicle loans through indirect lending programs offered primarily in the Northeastern, Midwestern and Southern United States from its headquarters in Henrico, Virginia.

Additional information regarding the Corporation’s products and services, as well as access to its filings with the Securities and Exchange Commission (SEC), are available on the Corporation’s website at http://www.cffc.com.

Use of Certain Non-GAAP Financial Measures. The accounting and reporting policies of the Corporation conform to GAAP in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of the Corporation’s performance. These include adjusted net income, adjusted earnings per share, adjusted return on average equity, adjusted return on average assets, return on average tangible common equity (ROTCE), adjusted ROTCE, tangible book value per share, price to tangible book value ratio, and the following fully-taxable equivalent (FTE) measures: interest income on loans-FTE, interest income on securities-FTE, total interest income-FTE and net interest income-FTE.

Management believes that the use of these non-GAAP measures provides meaningful information about operating performance by enhancing comparability with other financial periods, other financial institutions, and between different sources of interest income. The non-GAAP measures used by management enhance comparability by excluding the effects of balances of intangible assets, including goodwill, that vary significantly between institutions, and tax benefits that are not consistent across different opportunities for investment. These non-GAAP financial measures should not be considered an alternative to GAAP-basis financial statements, and other bank holding companies may define or calculate these or similar measures differently. A reconciliation of the non-GAAP financial measures used by the Corporation to evaluate and measure the Corporation’s performance to the most directly comparable GAAP financial measures is presented below.

Forward-Looking Statements. This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the beliefs of the Corporation’s management, as well as assumptions made by, and information currently available to, the Corporation’s management, and reflect management’s current views with respect to certain events that could have an impact on the Corporation’s future financial performance. These statements, including without limitation statements made in Mr. Cherry’s quote and statements regarding future interest rates and conditions in the Corporation’s industries and markets, relate to expectations concerning matters that are not historical fact, may express “belief,” “intention,” “expectation,” “potential” and similar expressions, and may use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “might,” “will,” “intend,” “target,” “should,” “could,” or similar expressions. These statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those anticipated or implied by such statements. Forward-looking statements in this release may include, without limitation, statements regarding expected future operations and financial performance, expected trends in yields on loans, expected future recovery of investments in debt securities, future dividend payments, deposit trends, charge-offs and delinquencies, changes in cost of funds and net interest margin and items affecting net interest margin, strategic business initiatives and the anticipated effects thereof, changes in interest rates and the effects thereof on net interest income, mortgage loan originations, expectations regarding C&F Bank’s regulatory risk-based capital requirement levels, technology initiatives, our diversified business strategy, asset quality, credit quality, adequacy of allowances for credit losses and the level of future charge-offs, market interest rates and housing inventory and resulting effects in mortgage loan origination volume, sources of liquidity, adequacy of the reserve for indemnification losses related to loans sold in the secondary market, the effect of future market and industry trends, the effects of future interest rate fluctuations, cybersecurity risks, and inflation. Factors that could have a material adverse effect on the operations and future prospects of the Corporation include, but are not limited to, changes in:

interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds, increases in interest rates following actions by the Federal Reserve and increases or volatility in mortgage interest rates
general business conditions, as well as conditions within the financial markets
general economic conditions, including unemployment levels, inflation rates, supply chain disruptions and slowdowns in economic growth
general market conditions, including disruptions due to pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and in the Middle East) or other major events, or the prospect of these events
average loan yields and average costs of interest-bearing deposits
financial services industry conditions, including bank failures or concerns involving liquidity
labor market conditions, including attracting, hiring, training, motivating and retaining qualified employees
the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services, the Consumer Financial Protection Bureau (the CFPB) and the regulatory and enforcement activities of the CFPB
monetary and fiscal policies of the U.S. Government, including policies of the FDIC, U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System, and the effect of these policies on interest rates and business in our markets
demand for financial services in the Corporation’s market area
the value of securities held in the Corporation’s investment portfolios
the quality or composition of the loan portfolios and the value of the collateral securing those loans
the inventory level, demand and fluctuations in the pricing of used automobiles, including sales prices of repossessed vehicles
the level of automobile loan delinquencies or defaults and our ability to repossess automobiles securing delinquent automobile finance installment contracts
the level of net charge-offs on loans and the adequacy of our allowance for credit losses
the level of indemnification losses related to mortgage loans sold
demand for loan products
deposit flows
the strength of the Corporation’s counterparties
the availability of lines of credit from the FHLB and other counterparties
the soundness of other financial institutions and any indirect exposure related to the closing of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Corporation has commercial or deposit relationships
competition from both banks and non-banks, including competition in the non-prime automobile finance markets and marine and recreational vehicle finance markets
services provided by, or the level of the Corporation’s reliance upon third parties for key services
the commercial and residential real estate markets, including changes in property values
the demand for residential mortgages and conditions in the secondary residential mortgage loan markets
the Corporation’s technology initiatives and other strategic initiatives
the Corporation’s branch expansions and consolidations plans
cyber threats, attacks or events
C&F Bank’s product offerings
accounting principles, policies and guidelines, and elections by the Corporation thereunder

These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. For additional information on risk factors that could affect the forward-looking statements contained herein, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023 and other reports filed with the SEC. The Corporation undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.


C&F Financial Corporation Selected Financial Information (dollars in thousands, except for per share data) (unaudited)

Financial Condition	12/31/2024		12/31/2023
Interest-bearing deposits in other banks	$	49,423	$	58,777
Investment securities – available for sale, at fair value		418,625		462,444
Loans held for sale, at fair value		20,112		14,176
Loans, net:
Community Banking segment		1,436,226		1,257,557
Consumer Finance segment		444,085		444,931
Total assets		2,563,385		2,438,498
Deposits		2,170,860		2,066,130
Repurchase agreements		28,994		30,705
Other borrowings		93,615		78,834
Total equity		226,970		217,516


	For The				For The
	Quarter Ended				Year Ended
Results of Operations	12/31/2024		12/31/2023		12/31/2024		12/31/2023
Interest income	$	36,443	$	32,408	$	139,594	$	124,137
Interest expense		11,343		8,466		42,819		26,430
Provision for credit losses:
Community Banking segment		–		75		1,650		1,625
Consumer Finance segment		3,500		2,400		11,600		6,650
Noninterest income:
Gains on sales of loans		1,250		850		6,064		5,780
Other		5,700		6,953		24,474		23,835
Noninterest expenses:
Salaries and employee benefits		11,953		14,035		53,578		54,876
Other		9,363		9,038		36,352		35,007
Income tax expense		1,205		1,109		4,215		5,418
Net income		6,029		5,088		19,918		23,746

Fully-taxable equivalent (FTE) amounts¹
Interest income on loans-FTE		33,122		29,147		127,288		111,146
Interest income on securities-FTE		3,046		3,121		12,079		12,710
Total interest income-FTE		36,731		32,677		140,741		125,101
Net interest income-FTE		25,388		24,211		97,922		98,671

_________________
¹For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”


	For the Quarter Ended
	12/31/2024							12/31/2023
	Average			Income/		Yield/		Average			Income/		Yield/
Yield Analysis	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Securities:
Taxable	$	321,796		$	1,898	2.36	%	$	392,368		$	2,093	2.13	%
Tax-exempt		120,119			1,148	3.82			118,263			1,028	3.48
Total securities		441,915			3,046	2.76			510,631			3,121	2.44
Loans:
Community banking segment		1,438,195			20,036	5.54			1,257,418			16,813	5.30
Mortgage banking segment		30,674			486	6.30			22,288			383	6.82
Consumer finance segment		473,816			12,600	10.58			471,355			11,951	10.06
Total loans		1,942,685			33,122	6.78			1,751,061			29,147	6.60
Interest-bearing deposits in other banks		58,212			563	3.85			42,114			409	3.85
Total earning assets		2,442,812			36,731	5.98			2,303,806			32,677	5.63
Allowance for credit losses		(40,930	)						(40,614	)
Total non-earning assets		159,082							142,252
Total assets	$	2,560,964						$	2,405,444

Liabilities and Equity
Interest-bearing deposits:
Interest-bearing demand deposits	$	331,156			601	0.72		$	341,243			556	0.65
Money market deposit accounts		299,321			1,136	1.51			299,712			896	1.19
Savings accounts		176,106			26	0.06			194,476			33	0.07
Certificates of deposit		811,224			8,325	4.08			635,702			5,665	3.54
Total interest-bearing deposits		1,617,807			10,088	2.48			1,471,133			7,150	1.93
Borrowings:
Repurchase agreements		30,673			131	1.71			33,418			126	1.51
Other borrowings		93,765			1,124	4.79			98,875			1,190	4.81
Total borrowings		124,438			1,255	4.03			132,293			1,316	3.98
Total interest-bearing liabilities		1,742,245			11,343	2.59			1,603,426			8,466	2.10
Noninterest-bearing demand deposits		547,890							554,321
Other liabilities		43,379							45,462
Total liabilities		2,333,514							2,203,209
Equity		227,450							202,235
Total liabilities and equity	$	2,560,964						$	2,405,444
Net interest income				$	25,388						$	24,211
Interest rate spread						3.39	%						3.53	%
Interest expense to average earning assets						1.85	%						1.46	%
Net interest margin						4.13	%						4.17	%


	For the Year Ended
	12/31/2024							12/31/2023
	Average			Income/		Yield/		Average			Income/		Yield/
Yield Analysis	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Securities:
Taxable	$	335,647		$	7,563	2.25	%	$	428,895		$	9,110	2.12	%
Tax-exempt		119,978			4,516	3.76			108,006			3,600	3.33
Total securities		455,625			12,079	2.65			536,901			12,710	2.37
Loans:
Community banking segment		1,378,131			75,707	5.49			1,214,143			62,188	5.12
Mortgage banking segment		30,737			1,897	6.17			25,598			1,695	6.62
Consumer finance segment		476,775			49,684	10.42			473,885			47,263	9.97
Total loans		1,885,643			127,288	6.75			1,713,626			111,146	6.49
Interest-bearing deposits in other banks		37,238			1,374	3.69			35,351			1,245	3.52
Total earning assets		2,378,506			140,741	5.92			2,285,878			125,101	5.47
Allowance for loan losses		(40,736	)						(41,047	)
Total non-earning assets		156,726							148,666
Total assets	$	2,494,496						$	2,393,497

Liabilities and Equity
Interest-bearing deposits:
Interest-bearing demand deposits	$	327,700			2,170	0.66		$	354,643			2,134	0.60
Money market deposit accounts		296,278			4,313	1.46			317,601			3,017	0.95
Savings accounts		180,429			111	0.06			209,033			124	0.06
Certificates of deposit		767,721			31,465	4.10			541,252			15,112	2.79
Total interest-bearing deposits		1,572,128			38,059	2.42			1,422,529			20,387	1.43
Borrowings:
Repurchase agreements		27,754			456	1.64			32,393			399	1.23
Other borrowings		91,713			4,304	4.69			116,908			5,644	4.83
Total borrowings		119,467			4,760	3.98			149,301			6,043	4.05
Total interest-bearing liabilities		1,691,595			42,819	2.53			1,571,830			26,430	1.68
Noninterest-bearing demand deposits		536,828							575,452
Other liabilities		45,217							42,954
Total liabilities		2,273,640							2,190,236
Equity		220,856							203,261
Total liabilities and equity	$	2,494,496						$	2,393,497
Net interest income				$	97,922						$	98,671
Interest rate spread						3.39	%						3.79	%
Interest expense to average earning assets						1.80	%						1.16	%
Net interest margin						4.12	%						4.31	%


	12/31/2024
Funding Sources	Capacity		Outstanding		Available
Unsecured federal funds agreements	$	75,000	$	—	$	75,000
Borrowings from FHLB		257,734		40,000		217,734
Borrowings from Federal Reserve Bank		313,499		—		313,499
Total	$	646,233	$	40,000	$	606,233


Asset Quality	12/31/2024			12/31/2023
Community Banking
Total loans	$	1,453,605		$	1,273,629
Nonaccrual loans	$	333		$	406

Allowance for credit losses (ACL)	$	17,379		$	16,072
Nonaccrual loans to total loans		0.02	%		0.03	%
ACL to total loans		1.20	%		1.26	%
ACL to nonaccrual loans		5,218.92	%		3,958.62	%
Year-to-date net charge-offs to average loans		0.01	%		0.01	%

Consumer Finance
Total loans	$	466,793		$	468,510
Nonaccrual loans	$	614		$	892
Repossessed assets	$	779		$	646
ACL	$	22,708		$	23,579
Nonaccrual loans to total loans		0.13	%		0.19	%
ACL to total loans		4.86	%		5.03	%
ACL to nonaccrual loans		3,698.37	%		2,643.39	%
Year-to-date net charge-offs to average loans		2.62	%		1.99	%


	For The						For The
	Quarter Ended						Year Ended
Other Performance Data	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Net Income (Loss):
Community Banking	$	6,364		$	5,186		$	20,284		$	22,928
Mortgage Banking		87			(103	)		1,108			465
Consumer Finance		272			618			1,414			2,879
Other¹		(694	)		(613	)		(2,888	)		(2,526	)
Total	$	6,029		$	5,088		$	19,918		$	23,746

Net income attributable to C&F Financial Corporation	$	6,037		$	5,068		$	19,834		$	23,604

Earnings per share – basic and diluted	$	1.87		$	1.50		$	6.01		$	6.92
Weighted average shares outstanding – basic and diluted		3,226,999			3,367,931			3,299,574			3,411,995

Annualized return on average assets		0.94	%		0.85	%		0.80	%		0.99	%
Annualized return on average equity		10.60	%		10.06	%		9.02	%		11.68	%
Annualized return on average tangible common equity²		12.17	%		11.74	%		10.37	%		13.58	%
Dividends declared per share	$	0.44		$	0.44		$	1.76		$	1.76

Mortgage loan originations – Mortgage Banking	$	130,426		$	98,238		$	527,750		$	498,797
Mortgage loans sold – Mortgage Banking		154,552			109,387			522,001			498,852

_________________
¹ Includes results of the holding company that are not allocated to the business segments and elimination of inter-segment activity.
² For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”


Market Ratios	12/31/2024		12/31/2023
Market value per share	$	71.25	$	68.19
Book value per share	$	70.00	$	64.28
Price to book value ratio		1.02		1.06
Tangible book value per share¹	$	61.86	$	56.40
Price to tangible book value ratio¹		1.15		1.21
Price to earnings ratio (ttm)		11.86		9.87

_________________
¹ For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”



			Minimum Capital
Capital Ratios	12/31/2024	12/31/2023	Requirements³
C&F Financial Corporation¹
Total risk-based capital ratio	14.1%	14.8%	8.0%
Tier 1 risk-based capital ratio	11.9%	12.6%	6.0%
Common equity tier 1 capital ratio	10.7%	11.3%	4.5%
Tier 1 leverage ratio	9.8%	10.1%	4.0%

C&F Bank²
Total risk-based capital ratio	13.6%	14.1%	8.0%
Tier 1 risk-based capital ratio	12.3%	12.9%	6.0%
Common equity tier 1 capital ratio	12.3%	12.9%	4.5%
Tier 1 leverage ratio	10.1%	10.3%	4.0%

_________________
¹ The Corporation, a small bank holding company under applicable regulations and guidance, is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented above, along with the Corporation’s capital ratios as determined under those regulations.
² All ratios at December 31, 2024 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2023 are presented as filed.
³ The ratios presented for minimum capital requirements are those to be considered adequately capitalized.


	For The Quarter Ended						For The Year Ended
	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Reconciliation of Certain Non-GAAP Financial Measures
Return on Average Tangible Common Equity
Average total equity, as reported	$	227,450		$	202,235		$	220,856		$	203,261
Average goodwill		(25,191	)		(25,191	)		(25,191	)		(25,191	)
Average other intangible assets		(1,183	)		(1,439	)		(1,273	)		(1,538	)
Average noncontrolling interest		(518	)		(515	)		(649	)		(675	)
Average tangible common equity	$	200,558		$	175,090		$	193,743		$	175,857

Net income	$	6,029		$	5,088		$	19,918		$	23,746
Amortization of intangibles		64			69			260			273
Net loss (income) attributable to noncontrolling interest		8			(20	)		(84	)		(142	)
Net tangible income attributable to C&F Financial Corporation	$	6,101		$	5,137		$	20,094		$	23,877

Annualized return on average equity, as reported		10.60	%		10.06	%		12.02	%		15.58	%
Annualized return on average tangible common equity		12.17	%		11.74	%		10.37	%		13.58	%


	For The Quarter Ended				For The Year Ended
	12/31/2024		12/31/2023		12/31/2024		12/31/2023
Fully Taxable Equivalent Net Interest Income¹
Interest income on loans	$	33,075	$	29,093	$	127,089	$	110,938
FTE adjustment		47		54		199		208
FTE interest income on loans	$	33,122	$	29,147	$	127,288	$	111,146

Interest income on securities	$	2,805	$	2,906	$	11,131	$	11,954
FTE adjustment		241		215		948		756
FTE interest income on securities	$	3,046	$	3,121	$	12,079	$	12,710

Total interest income	$	36,443	$	32,408	$	139,594	$	124,137
FTE adjustment		288		269		1,147		964
FTE interest income	$	36,731	$	32,677	$	140,741	$	125,101

Net interest income	$	25,100	$	23,942	$	96,775	$	97,707
FTE adjustment		288		269		1,147		964
FTE net interest income	$	25,388	$	24,211	$	97,922	$	98,671

_________________
¹ Assuming a tax rate of 21%.


	December 31,			December 31,
*(Dollars in thousands except for per share data)*	2024			2023
Tangible Book Value Per Share
Equity attributable to C&F Financial Corporation	$	226,360		$	216,878
Goodwill		(25,191	)		(25,191	)
Other intangible assets		(1,147	)		(1,407	)
Tangible equity attributable to C&F Financial Corporation	$	200,022		$	190,280

Shares outstanding		3,233,672			3,374,098

Book value per share	$	70.00		$	64.28
Tangible book value per share	$	61.86		$	56.40

Contact:	Jason Long, CFO and Secretary
	(804) 843-2360

The MIL Network –

January 29, 2025

MIL-OSI: Disclosure of choice of the home Member State and the competent authority for the needs for the Transparency Directive

Source: GlobeNewswire (MIL-OSI)

Paris, January 28, 2025

Disclosure of choice of the home Member State and the competent authority for the needs for the Transparency Directive

In accordance with article 222-1 of the General Regulation of the Autorité des Marchés Financiers (AMF), Sfil specifies that its home Member State, according to the Directive 2004/109/EC of the European Parliament and of the Council of December 15^th, 2004 (the Transparency Directive) modified, is France and that as a consequence, the competent authority for the control of the compliance with its obligations regarding regulated information is the Autorité des Marchés Financiers.

Attachment

Sfil – Communiqué GB

The MIL Network –

January 29, 2025

MIL-OSI: Philadelphia Union & Atomic Data Announce Multi-Year Partnership Extension

Source: GlobeNewswire (MIL-OSI)

CHESTER, Pa. and MINNEAPOLIS, Jan. 28, 2025 (GLOBE NEWSWIRE) — Philadelphia Union and Atomic Data announced today that they have extended their partnership for five more years, bringing a wide range of managed IT services to the Major League Soccer Club through 2029. Under the official IT partnership, Atomic Data and Game Day Technologies will continue to oversee all of the Union’s IT operations and security measures.

“We are excited to announce the extension of our multi-year partnership with Atomic Data,” said Chief Revenue Officer Charlie Slonaker. “Since our collaboration began in 2022, Atomic Data has significantly enhanced our technology operations and IT resources. Their 24×7 support has been instrumental in helping us achieve several key club goals. We look forward to continuing to develop innovative strategies to drive growth over the next five years.”

As the official IT provider for Philadelphia Union, Subaru Park, & WSFS Bank Sportsplex, Atomic Data manages their servers and endpoints, monitors their network around the clock, and provides 24×7 end-user help desk support. They also strengthen the team’s cybersecurity with advanced tools and offer on-site tech support for the organization as needed.

Atomic Data’s Yagya Mahadevan, head of sports and entertainment division Game Day Technologies, commented: “This multi-year extension reaffirms the strong partnership we’ve built with Philadelphia Union over the past three years, and we’re thrilled to enter the next phase. Looking ahead, we’re committed to helping Philadelphia Union implement robust processes to enhance their technology operations and deliver world-class infrastructure for the WSFS Bank Sportsplex.”

About Atomic Data & Game Day Technologies
Atomic Data, trusted IT provider for hundreds of enterprises, sports teams, and large venues, is on a mission to deliver always-on, custom-tailored technology solutions and objective IT leadership.

Game Day Technologies® powered by Atomic Data enables owners and teams to right size and modernize their venues, districts, training facilities, and back offices with objective, holistic technology oversight and activation.

For more information, please visit www.philadelphiaunion.com.

The MIL Network –

January 29, 2025

MIL-OSI: Mattermost to Deliver AI-Powered Collaboration for Azure Secret and Top Secret Environments

Source: GlobeNewswire (MIL-OSI)

Palo Alto, California, Jan. 28, 2025 (GLOBE NEWSWIRE) — At the AFCEA West 2025 conference, Mattermost, the leading collaborative workflow platform for air-gapped edge operations, today announced its intent to develop an AI-ready platform for Azure Secret and Top Secret cloud environments. This initiative will leverage the power of Azure AI, including OpenAI’s GPT-4o, which recently received authorization for use in Microsoft’s Azure Government Top Secret cloud, as announced by Microsoft on January 16, 2025.

Mattermost is purpose-built for disconnected, edge-based environments, enabling secure collaboration and workflow execution even in the most isolated and sensitive operations. This includes one-to-one and group messaging, file sharing, systems integration, automation, audio calling, and screen share. This new initiative will extend these capabilities to Azure’s air-gapped cloud environments, empowering defense and intelligence agencies to leverage the latest advancements in AI while maintaining the highest levels of security and compliance.

Key Use Cases:

Out-of-Band Incident Response: Securely coordinate and manage incident response activities in disconnected environments. This is critical for maintaining communication and operational continuity when primary communications infrastructure may be breached or unavailable, especially in emergency situations to prevent data spillage of classified information to other platforms.
Red Team and Pen Test Workflows: Facilitate collaboration and information sharing for red teaming and penetration testing exercises within a protected, segregated environment designed to manage highly sensitive classified information about vulnerabilities in critical infrastructure.
DevSecOps in Classified Environments: Enable secure collaboration and automation for software development and security operations, including integrations with continuous integration/continuous delivery (CI/CD) platforms and popular developer infrastructure like on-premise versions of GitLab, GitHub Enterprise, Jira, Jenkins, and other similar platforms.
Mission Operations and Command and Control: Provide a reliable and secure platform for critical communications and coordination.

Key Features and Benefits:

Secure Collaboration: Enables secure chat operations, file sharing, audio calling, and screen sharing, along with integration with legacy and custom systems, automation and customization, all within classified environments.
Workflow Automation: Streamlines repetitive tasks, boosts efficiency with secure workflows and digital playbooks, and speeds up the execution of standard operating procedures, training, and onboarding.
AI-Powered Assistance: Acts as a force multiplier to address talent and personnel shortages by leveraging Azure AI and OpenAI to provide real-time analysis, automated workflows, and intelligent insights, alleviating the stress of spreading mission-critical teams too thinly across responsibilities.
Integration with Microsoft Teams: Offers interoperability options with Microsoft Teams, allowing for collaboration across different security domains.
Compliance with Stringent Standards: Meets the rigorous security and compliance requirements of Intelligence Community Directive (ICD) 503.

“The material rise in geopolitical instability and the dramatic increase in global cyber threats, including adversarial use of AI and digital attack vectors, requires rapid augmentation of capabilities within air-gapped environments to more rapidly detect, analyze, and defend against new categories of threats,” said Corey Hulen, CEO of Mattermost Federal Inc. “This initiative represents a significant step forward in our commitment to providing the secure and innovative solutions required for mission success in this challenging environment.”

About Mattermost:

Mattermost is the leading collaborative workflow platform for air-gapped edge environments. We serve national security, government, and critical infrastructure enterprises, from the U.S. Department of Defense, to global tech giants, to utilities, banks and other vital services. We accelerate out-of-band incident response, DevSecOps workflow, mission operations, and self-sovereign collaboration to bolster the focus, adaptability and resilience of the world’s most important organizations.

Our enterprise software and single-tenant SaaS platforms are built to meet the custom needs of rigorous and complex environments while offering a secure and unrivaled collaboration experience across web, desktop and mobile with channel-based messaging, file sharing, audio calling and screen share, with integrated tooling, workflow automation and AI assistance.

For more information visit mattermost.com.

The MIL Network –

January 29, 2025

MIL-OSI: Bybit Web3 Launches Telegram Mini Wallet to Simplify Wallet Creation for Web2 Users

Source: GlobeNewswire (MIL-OSI)

DUBAI, United Arab Emirates, Jan. 28, 2025 (GLOBE NEWSWIRE) — Bybit Web3, the Web3 division of Bybit, today announced the launch of its Telegram Mini Wallet, a significant step towards bridging the gap between Web2 and Web3. This innovative feature empowers users to seamlessly create and manage their Bybit Wallets directly within the popular Telegram messaging app, eliminating the need for separate app downloads and streamlining their Web3 journey. This integration reflects Bybit’s strategic commitment to simplifying access to blockchain technology for a broader audience, particularly Telegram’s active user base.

Key Features and Benefits of the Bybit Telegram Mini Wallet:

Simplified Onboarding: Allows users to create a Bybit Wallet easily within the Telegram interface.
Integrated Asset Management: Enables depositing, withdrawing, and managing crypto assets directly within Telegram.
Improved User Experience: Offers opportunities to participate in campaigns, engage with the Bybit ecosystem, and explore Web3 within Telegram.
Enhanced Accessibility: Aims to break down the barriers to entry for Web2 users and support broader blockchain adoption.

“We’re thrilled to introduce the Telegram Mini Wallet — it’s a big step in our mission to bridge CeDeFi and become the gateway to everything on-chain,” said Emily Bao, Head of Spot and Web3. “By making wallet creation and management simpler, we’re opening the door for more people to experience the amazing possibilities of Web3. It’s all about making blockchain technology easy and accessible for everyone.”

Exploring New Possibilities: Bybit Telegram Mini Wallet and FarmX Campaign

The launch of the Telegram Mini Wallet aligns with the latest edition of FarmX, Bybit SpaceS’ flagship token farming initiative. This campaign features a prize pool exceeding $100,000, and an expanded selection of token rewards, including $PinEye, $FLOCK, and $USDT (via Tanssi).

Over 20,000 users have already won USDT in previous FarmX campaigns, with more than 5,000 joining within 24 hours during a first-come, first-served event. One user earned around 50 USDT, demonstrating the potential rewards available. The upcoming campaign provides an expanded scope, featuring 50,000 slots available for users to claim potential rewards.

The Telegram Mini Wallet addresses a common industry challenge: for many beginners, getting started with DeFi can be confusing, especially when it comes to choosing and setting up a Web3 wallet. By leveraging Telegram, a trusted platform familiar to millions, the Bybit Mini Telegram Wallet simplifies the process by allowing users to create and manage their Web3 wallet directly within the app. This seamless integration provides an easy and secure way for users to explore decentralized finance, offering a smoother introduction to owning and managing digital assets.

Users can seamlessly connect via the Telegram Mini Wallet or their Bybit Wallet, streamlining their participation in FarmX. Moreover, holding or staking $TON unlocks exclusive perks, such as boosted rewards in the TON Pool, further enhancing the earning potential.

Bybit’s Telegram Mini Wallet and FarmX campaign exemplifies its innovative approach to integrating social engagement with blockchain technology, empowering users with intuitive tools and generous rewards.

#Bybit / #TheCryptoArk / #BybitWeb3

About Bybit Web3

Bybit Web3 is redefining openness in the decentralized world, creating a simpler, open, and equal ecosystem for everyone. We are committed to welcoming builders, creators, and partners in the blockchain space, extending an invitation to both crypto enthusiasts and the curious, with a community of over 130 million wallet addresses across over 30 major ecosystem partners, and counting.

Bybit Web3 provides a comprehensive suite of Web3 products designed to make accessing, swapping, collecting and growing Web3 assets as open and simple as possible. Our wallets, marketplaces and platforms are all backed by the security and expertise that define Bybit as the world’s second-largest cryptocurrency exchange by trading volume, trusted by over 60 million users globally.

Join the revolution now and open the door to your Web3 future with Bybit.

For more details about Bybit Web3, please visit Bybit Web3.

About Bybit

Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of over 60 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.

Contact

Head of PR
Tony Au
Bybit
tony.au@bybit.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/663c0477-8b1e-44e7-a7f4-fdd6a69a6018

The MIL Network –

January 29, 2025

MIL-OSI: Alliance Witan PLC – Dividend Declaration

Source: GlobeNewswire (MIL-OSI)

Alliance Witan PLC (‘the Company’)
LEI: 213800SZZD4E2IOZ9W55

Dividend Declaration

58 Years of Rising Dividends

Alliance Witan PLC declares a fourth interim dividend of 6.73p per share, up 6.2% on the equivalent dividend of 6.34p paid in the same period in the last financial year. The total dividend for 2024 is therefore 26.70p, an increase of 6.0% on the Company’s 2023 dividend. This sustains dividend growth for legacy Witan shareholders and marks the 58th consecutive annual increase for the Company, one of the longest track records in the investment trust industry. With substantial reserves, the Board is confident that it can go on increasing dividends well into the future.

The dividend will be paid on 31 March 2025 to shareholders on the register at the close of business on 28 February 2025. The ex-dividend date is 27 February 2025.”

Juniper Partners Limited
Company Secretary

28 January 2025

The MIL Network –

January 29, 2025

MIL-OSI: Western Financial Group Honoured as a Top Alberta Employer

Source: GlobeNewswire (MIL-OSI)

HIGH RIVER, Alberta, Jan. 28, 2025 (GLOBE NEWSWIRE) — Thanks in part to our exceptional workplace culture, commitment to work-life balance and care for our people, customers, and communities in which we live and work, Western Financial Group (Western) has been recognized as one of Alberta’s Top Employers 2025.

First published in 2006, Alberta’s Top Employers is an annual competition organized by the editors of Canada’s Top 100 Employers. This special designation recognizes the employers that lead their industries in offering exceptional places to work.

“It’s an honour to receive this kind of recognition, particularly in a time when many industries are facing a war for talent,” said Grant Ostir, Western’s Chief Executive Officer. “This really reinforces our commitment to caring for our people, ensuring professional growth opportunities and giving them the tools they need to succeed. This commitment carries across all teams, from coast to coast.”

Western was also recently named to the Forbes’ Canada Best Employers 2025 list for the second time.

“From our inclusive environment and generous vacation time, to our commitment to the local communities in which we live and work, there are many reasons why people are drawn to work at Western,” said Kristy Rachkowski, Chief People and Culture Officer. “I’m really proud of the workplace culture we’ve cultivated and the philosophy that our people and our customers are at the heart of all we do. We can feel that at all levels throughout the organization.”

Founded in 1905 in High River, Alberta, Western stands out as a workplace committed to fostering a positive environment for its approximately 2,200 employees across Canada, from coast to coast.

Click here for more information about Western’s culture and staff insights. For more information about Western Financial Group, visit www.westernfinancialgroup.ca.

Western Financial Group Inc.

Headquartered in High River, Alberta, Western Financial Group is a diversified insurance services company focused on creating security and peace of mind and has provided over one million Canadians with the proper protection for over 100 years. Western is committed to community service, customer service, innovation, growth, and people while providing personal and business insurance through our engaged team of over 2,000 people in approximately 200 communities, affiliates, and various connected channels.

Since the very beginning, supporting our local communities has guided everything we do – it’s who we are. In 2001, the Western Financial Group Communities Foundation (our non-profit charity) was created as a way for our team members to give back and positively impact the people and pride in the places where we live, work and play – to date we have granted over $9 million back into our communities.

Western Financial Group is a subsidiary of Trimont Financial Ltd., a subsidiary of The Wawanesa Mutual Insurance Company. Visit https://westernfinancialgroup.ca for more.

For more information, please contact:

Nichola Petts, PR Manager: Nichola.petts@westernfg.ca

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/239fad2e-3930-406d-bedf-d41e0dedd2ac

The MIL Network –

January 29, 2025

MIL-OSI: Bybit Brings Gold and Forex Trading to the Forefront with Exclusive Copy Trading Fiesta

Source: GlobeNewswire (MIL-OSI)

DUBAI, United Arab Emirates, Jan. 28, 2025 (GLOBE NEWSWIRE) —

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has unveiled the Copy Trading Gold & FX Fiesta, an exclusive event offering a total prize pool of 130,000 USDT. This unique opportunity invites crypto traders to explore Gold and Forex markets through Bybit’s innovative Copy Trading platform, which simplifies trading for beginners and experienced participants alike. The event runs from now until Feb. 24, 2025, providing a seamless gateway for crypto traders to expand their strategies into new asset classes.

Participants can unlock rewards by completing a variety of engaging tasks. Traders who register as Master Traders and complete their first trade on the Copy Trading Gold & FX platform will be eligible to receive a 50 USDT airdrop. Those who choose to follow a Master Trader and execute their first copy trade are eligible for a 10 USDT airdrop. Participants can enhance their chances of winning by completing a daily trading task. By trading at least 2 lots of Gold or forex, they can unlock one Lucky Draw opportunity each day, adding more potential rewards to their experience.

Bybit’s Copy Trading Gold & FX Fiesta is designed to help traders diversify their portfolios, moving beyond traditional cryptocurrency markets to explore the potential of Gold and Forex. With the global economy showing positive growth, this is a chance to discover new opportunities and expand into promising asset classes. Bybit’s platform ensures convenience by leveraging USDT instead of fiat, simplifying transactions and making it easy for users to participate. Beginners can follow the strategies of experienced traders through Copy Trading, gaining confidence and insights as they trade alongside industry pros.

Joan Han, Sales and Marketing Director at Bybit, shared her thoughts on the event: “By combining exclusive features with a user-friendly platform, we’re making it easier than ever for our users to explore new trading opportunities and diversify their portfolios. This event is the perfect gateway for those looking to enter the Gold and Forex markets while leveraging the expertise of seasoned traders.”

Rewards for this event are distributed on a first-come, first-served basis. Lucky Draw rewards will be credited to winners’ Rewards Hub and must be claimed within 14 days. To qualify, participants must register via the designated event page and complete Identity Verification Level 1. Restrictions apply, and users are advised to read the terms and conditions.

For any questions or assistance, users can contact Bybit’s Customer Support team.

#Bybit / #TheCryptoArk

About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of over 60 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.

Contact

Head of PR
Tony Au
Bybit
tony.au@bybit.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d39060a8-34cf-4f63-bc50-08e09e6d083d

The MIL Network –

January 29, 2025

MIL-OSI: Alliance Witan PLC – Director Declaration

Source: GlobeNewswire (MIL-OSI)

Alliance Trust PLC (‘the Company’)
LEI: 213800SZZD4E2IOZ9W55

Director Declaration

In accordance with Listing Rule 6.4.9R (2), the Company announces that Milyae Park, non-executive Director of the Company, has been appointed as a non-executive Director of THG PLC with effect from 28 January 2025.

Juniper Partners Limited
Company Secretary

28 January 2025

The MIL Network –

January 29, 2025

MIL-OSI: Oricidin Launches Groundbreaking Dental Gel for Long-Term Periodontitis Treatment

Source: GlobeNewswire (MIL-OSI)

BEVERLY HILLS, California, Jan. 28, 2025 (GLOBE NEWSWIRE) — Orocidin A/S, a subsidiary of Nordicus Partners Corporation (OTCQB: NORD) (“Nordicus” or the “Company”), a financial consulting company specializing in supporting Nordic and U.S. life sciences companies in establishing themselves in the U.S. market, has developed a novel, proprietary dental gel that represents a significant breakthrough in the long-term treatment of periodontitis.

This innovative low-viscosity gel, featuring a unique active ingredient, offers an effective and convenient solution for long-term management of this widespread oral health condition. The gel is applied by dentists using a syringe and flushing cannula to deliver the treatment directly into dental pockets. Upon contact with oral cavity moisture, the gel forms a semi-solid, bioadhesive crystalline matrix. This structure enables the slow and localized release of the active peptide, ensuring sustained treatment efficacy over time.

The formulation leverages an optimized ratio of triglycerides, monoglycerides, and water. When exposed to water naturally present in the oral cavity, the gel rapidly forms a semi-solid bioadhesive crystalline matrix, enabling the slow, localized release of the active peptide for effective, long-term treatment of periodontitis. All components are biocompatible and FDA-approved for oral use, ensuring safety and effectiveness for patients.

“Oricidin’s innovative dental gel represents a significant advancement in the treatment of periodontitis,” said Allan Wehnert, Founder and CEO of Orocidin. “By combining cutting-edge science with patient-centered design, we aim to improve both outcomes and the overall dental care experience,”.

For further information, contact:

Mr. Henrik Rouf
Chief Executive Officer
Phone +1 310 666 0750
Email hr@nordicuspartners.com

Investor Relations
Jonathan Paterson
Harbor Access Investor Relations
Jonathan.Paterson@Harbor-Access.com
Tel +1 475 477 9401

About Nordicus Partners Corporation

Nordicus Partners Corporation is the only U.S. publicly traded business accelerator and holding company for Nordic life sciences companies. Leveraging decades of combined management experience in domestic and global corporate sectors, Nordicus excels in corporate finance activities including business and market development, growth strategies, talent acquisition, partnership building, capital raising, and facilitating company acquisitions and sales. In 2024, Nordicus acquired 100% of Orocidin A/S, a Danish preclinical-stage biotech company developing next-generation therapies for periodontitis and 100% of Bio-Convert ApS, a Danish preclinical-stage biotech company dedicated to revolutionizing the treatment of oral leukoplakia. For more information about Nordicus, please visit: www.nordicuspartners.com, and follow us on LinkedIn, X, Threads and BlueSky.

Cautionary Note Regarding Forward-Looking Statements:

This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The MIL Network –

January 29, 2025

MIL-OSI: Summit State Bank Reports Fourth Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SANTA ROSA, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported a net loss of $6,605,000, or $0.98 loss per diluted share for the fourth quarter ended December 31, 2024, compared to net income of $1,901,000, or $0.28 per diluted share for the fourth quarter ended December 31, 2023. The current quarter’s results were impacted by expenses including a $6,646,000 provision for credit losses on loans and a $4,119,000 one-time non-cash impairment charge to write off the remaining balance of goodwill. The Bank has taken significant charge offs and provisions for credit losses in the fourth quarter of 2024 as a proactive step towards resolving its problem loans. The goodwill impairment was a result of the Bank’s stock price trading below book value and is a non-cash charge that does not impact the Bank’s cash flows, liquidity, or regulatory capital. The Bank ended the year with improved regulatory capital ratios and is focused on expanding net interest margin in 2025.

For the year ended December 31, 2024, the Bank reported a net loss of $3,656,000, or $0.54 loss per diluted share compared to net income of $10,822,000, or $1.62 per diluted share for the year ended December 31, 2023. The 2024 net income loss was primarily attributable to annual provision for credit losses on loans totaling $7,958,000 and a one-time non-cash goodwill impairment expense of $4,119,000.

Pre-tax, pre-provision net income before goodwill¹ was $2,994,000 for the quarter ended December 31, 2024, compared to $2,122,000, $1,267,000, $1,955,000 and $2,643,000 for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively. “At the beginning of 2024, the Bank was negatively impacted by the ongoing strains that the high-interest rate environment put on our funding costs,” said Brian Reed, President and CEO. “By the fourth quarter of 2024, the Bank’s core operating results improved due to a lower cost of funds and improved noninterest income.”

“The Bank continues to focus on maintaining strong capital levels and did that effectively in 2024 by strategically managing the balance sheet and suspending cash dividends.
As such, the Board determined it will also suspend cash dividends in the first quarter of 2025 so that we can build capital, increase liquidity, and position the Bank to create long-term value for our shareholders.”

“The largest negative impact on the Bank’s performance in 2024 was a result of the heightened level of non-performing assets,” said Reed. “We have been aggressively pursuing solutions to these problem loans and have reduced our non performing loans by $9,160,000 in the fourth quarter of 2024. We anticipate non performing loans will be further reduced by $18,187,000 in the first half of 2025 as a result of loan payoffs from the sale of collateral that is currently under contract to be sold.”

“We are headed into 2025 feeling positive about our prospects subsequent to our significant progress in resolving problem loans. We continue to maintain our well capitalized status and sufficient liquidity after having realized successive quarters of improved net operating income results,” concluded Reed.

Fourth Quarter 2024 Financial Highlights (at or for the three months ended December 31, 2024)

The Bank’s Tier 1 Leverage ratio increased to 8.92% at December 31, 2024 compared to 8.85% at December 31, 2023. This ratio remains above the minimum of 5% required to be considered “well-capitalized” for regulatory capital purposes.
The Bank has implemented numerous operating cost saving initiatives including an 8% reduction in force.
The Bank’s annualized loss on average assets and annualized loss on average equity for the fourth quarter of 2024 was 2.39% and 25.94%, respectively. The pre-tax, pre-provision return on average assets before goodwill¹ and pre-tax, pre-provision return on average equity before goodwill¹ in the fourth quarter would have been 1.08% and 11.76%, respectively.
Net income was a loss of $6,605,000 for the fourth quarter of 2024. Pre-tax, pre-provision net income before goodwill¹ was $2,994,000 for the fourth quarter of 2024 compared to $2,122,000, $1,267,000, $1,955,000 and $2,643,000 for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, and December 31, 2023, respectively.
Collateral relating to two of the non performing loans is in contract to sell in the first half of 2025 and the expected proceeds represent 65% or $18,010,000 of the remaining $27,754,000 of non performing loans.
The allowance for credit losses to total loans was 1.50% after charging off $8,343,000 and recording a $6,646,000 provision for credit losses to replenish reserves on December 31, 2024.
The Bank maintained strong total liquidity of $435,409,000, or 40.8% of total assets as of December 31, 2024. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $111,471,000 or 10.4% of total assets, plus available borrowing capacity of $323,938,000 or 30.3% of total assets.
The Bank has been strategically managing its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. The Bank has been successful in reducing the size of its balance sheet as noted below:
- Net loans decreased $33,627,000 to $904,999,000 at December 31, 2024, compared to $938,626,000 one year earlier and decreased $12,368,000 compared to $917,367,000 three months earlier.
- Total deposits decreased 5% to $962,562,000 at December 31, 2024, compared to $1,009,693,000 at December 31, 2023, and decreased 4% when compared to the prior quarter end of $1,002,770,000.
Book value was $13.61 per share, compared to $14.40 per share a year ago and $14.85 in the preceding quarter.

Operating Results

For the fourth quarter of 2024, the annualized loss on average assets was 2.39% and the annualized loss on average equity was 25.94%. This compared to an annualized return on average assets of 0.67% and an annualized return on average equity of 8.02%, respectively, for the fourth quarter of 2023. These ratios were negatively impacted during the fourth quarter of 2024 by a credit loss provision and one-time goodwill impairment. Without the impact from these items, the pre-tax, pre-provision return on average assets before goodwill¹ and the pre-tax, pre-provision return on average equity before goodwill¹ would have been 1.08% and 11.76%, respectively, for the three months ended December 31, 2024.

For the year ended 2024, the loss on average assets was 0.37% and the loss on average equity was 3.69%. This compares to the return on average assets of 0.95% and return on average equity of 11.56%, respectively, for the year ended 2023.

The Bank’s net interest margin was 2.88% in the fourth quarter of 2024 compared to its lowest quarterly net interest margin this year of 2.71% which occurred in the second and third quarters of 2024. The current net interest margin is also higher compared to the fourth quarter of 2023 of 2.85%. This was primarily attributable to the cost of deposits decreasing in the fourth quarter of 2024 to 2.87% compared to 3.05% during the preceding quarter. “We are starting to see an improvement in cost of funds in response to the Federal Reserve rate decreases. As CDs mature, we expect to see continued improvement in deposit pricing in the near future,” said Reed. “In addition, loan yields have started to improve as our existing loans have started to reprice.”

Interest and dividend income decreased 1.0% to $14,935,000 in the fourth quarter of 2024 compared to $15,036,000 in the fourth quarter of 2023. The decrease in interest income is attributable to a $182,000 decrease in interest on investment securities and a $137,000 decrease in interest on deposits with banks offset by an increase of $214,000 in interest and fees on loans.

Noninterest income increased in the fourth quarter of 2024 to $1,373,000 compared to $297,000 in the fourth quarter of 2023. The increase is primarily attributed to the Bank recognizing $857,000 in gains on sales of SBA guaranteed loan balances in the fourth quarter of 2024 compared to no gains on sales of SBA guaranteed loan balances in the fourth quarter of 2023.

Operating expenses increased in the fourth quarter of 2024 to $10,200,000 compared to $5,483,000 in the fourth quarter of 2023. The increase is primarily due to a one-time non-cash impairment charge of $4,119,000 to write off the remaining balance of goodwill. In addition, the Bank recorded a $443,000 loss related to an external check fraud event during the fourth quarter of 2024. The Bank has filed an insurance claim related to this fraud loss and may be partially reimbursed by insurance at a later date.

“We remain focused on enhancing revenue generation and driving significant cost efficiencies to improving our operational effectiveness. To date we have leveraged existing staff and technologies to reduce third-party expenses, eliminated raises and bonuses, reduced employee benefits Bank-wide, and reduced director fees.”

Balance Sheet Review

During 2024, the Bank strategically managed its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. As a result of the efforts, net loans decreased 4% to $904,999,000 and total deposits also decreased 5% to $962,562,000 as of December 31, 2024 compared to December 31, 2023.

Net loans were $904,999,000 at December 31, 2024 compared to $938,626,000 at December 31, 2023, and decreased 1% compared to September 30, 2024. The Bank’s largest loan types are commercial real estate loans which make up 78% of the portfolio, “secured by farmland” totaling 9% of the portfolio, and 7% in commercial and industrial loans. Of the commercial real estate total, approximately 34% or $231,000,000 is owner occupied and the remaining 66% or $451,000,000 is non-owner occupied. The Bank’s entire loan portfolio is well diversified between industries including office space which totals $116,400,000.

Total deposits were $962,562,000 at December 31, 2024 compared to $1,009,693,000 at December 31, 2023, and decreased 4% compared to the prior quarter end. At December 31, 2024, noninterest bearing demand deposit accounts decreased 8% compared to a year ago and represented 19% of total deposits; savings, NOW and money market accounts decreased 9% compared to a year ago and represented 49% of total deposits, and CDs increased 4% compared to a year ago and comprised 32% of total deposits.

Shareholders’ equity was $92,261,000 at December 31, 2024, compared to $100,662,000 three months earlier and $97,678,000 a year earlier. The decrease in shareholders’ equity compared to a year ago was due to a reduction in retained earnings. At December 31, 2024 book value was $13.61 per share, compared to $14.85 three months earlier, and $14.40 at December 31, 2023.

The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of 5% necessary to be categorized as “well-capitalized” for regulatory capital purposes. The Tier-1 leverage ratio at the end of 2024 was 8.92%, an increase compared to 8.85% at the end of 2023.

Credit Quality

“Our primary focus remains on managing asset quality and reducing portfolio risk,” said Reed. “To that end we charged off loans of $8,343,000 and recorded a $6,646,000 provision for credit losses to replenish reserves during the fourth quarter of 2024. Three credits represent 94% or $26,040,000 of our non performing loans and are “secured by farmland” which have been hit hard by the current environment. The bank holds a small portion of its total loans in this industry and actively monitors the performance of these loans. Collateral relating to two of these three non performing loans is in contract to sell in the first half of 2025 and represents 65% or $18,010,000 of the non performing portfolio. The remaining non performing loans are being reserved at current appraisal value less selling cost.”

Non performing assets were $32,884,000, or 3.08% of total assets, at December 31, 2024. This compared to $41,971,000 in non performing assets at September 30, 2024, and $44,206,000 in non performing assets at December 31, 2023. Non performing assets include $5,130,000 for one other real estate owned loan at December 31, 2024 and September 30, 2024, compared to no other real estate owned loans at December 31, 2023.

There were $8,343,000 in net charge-offs during the three months ended December 31, 2024, compared to no charge-offs during the three months ended September 30, 2024 and net recoveries of $9,000 during the three months ended December 31, 2023.

For the fourth quarter of 2024, consistent with factors within the allowance for credit losses model, the Bank recorded a $6,646,000 provision for credit loss expense for loans, a $8,000 provision for credit losses for unfunded loan commitments and a $2,000 reversal of credit losses on investments. This compared to a $31,000 reversal of credit loss expense on loans, a $65,000 reversal of credit losses on unfunded loan commitments and a $31,000 provision for credit losses on investments in the fourth quarter of 2023.

The allowance for credit losses to total loans was 1.50% on December 31, 2024, and 1.60% on December 31, 2023. The decrease is due to $9,690,000 in loan charge-offs offset with a provision for credit losses on loans of $7,958,000 and $91,000 reversal of credit losses on unfunded loan commitments recorded during the year ended December 31, 2024.

About Summit State Bank

Founded in 1982 and headquartered in Sonoma County, Summit State Bank is an award-winning community bank serving the North Bay. The Bank serves small businesses, nonprofits and the community, with total assets of $1.1 billion and total equity of $92 million as of December 31, 2024. The Bank has built its reputation over the past 40 years by specializing in providing exceptional customer service and customized financial solutions to aid in the success of its customers.

Summit State Bank is committed to embracing the diverse backgrounds, cultures and talents of its employees to create high performance and support the evolving needs of its customers and community it serves. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Top Performing Community Bank by American Banker, Best Places to Work in the North Bay and Diversity in Business by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, and Hall of Fame by North Bay Biz Magazine. Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.

Cautionary Note Regarding Preliminary Financial Results and Forward-looking Statements

The financial results in this release are preliminary and unaudited. Final audited financial results and other disclosures will be reported in Summit State Bank’s annual report on Form 10-K for the period ended December 31, 2024 and may differ materially from the results and disclosures in this release due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information.

Except for historical information, the statements contained in this release, are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are non-historical statements regarding management’s expectations and beliefs about the Bank’s future financial performance and financial condition and trends in its business and markets. Words such as “expects,” “anticipates,” “believes,” “estimates” and similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Examples of forward-looking statements include but are not limited to statements regarding future operating results, operating improvements, loans sales and resolutions, cost savings, insurance recoveries and dividends. The forward-looking statements in this release are based on current information and on assumptions about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Bank’s control. As a result of those risks and uncertainties, the Bank’s actual future results and outcomes could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this release. Those risks and uncertainties include, but are not limited to, the risk of incurring credit losses; the quality and quantity of deposits; the market for deposits, adverse developments in the financial services industry and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of the Bank’s liquidity; fluctuations in interest rates; governmental regulation and supervision; the risk that the Bank will not maintain growth at historic rates or at all; general economic conditions, either nationally or locally in the areas in which the Bank conducts its business; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that customers or counterparties may not performance in accordance with the terms of credit documents or other agreements due a decline in credit worthiness, business conditions or other reasons;; adverse conditions in real estate markets; and the inherent uncertainty of expectations regarding litigation, insurance claims and the performance or resolution of loans. Additional information regarding these and other risks and uncertainties to which the Bank’s business and future financial performance are subject is contained in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and other documents the Bank files with the FDIC from time to time. Readers should not place undue reliance on the forward-looking statements, which reflect management’s views only as of the date of this release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

¹Non-GAAP Financial Measures

This release contains non-GAAP (Generally Accepted Accounting Principles) financial measures in addition to the results presented in accordance with GAAP. These Non-GAAP financial measures include pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision return on average assets before goodwill (“ROAA”), and pre-tax, pre-provision return on average equity (“ROAE”) before goodwill. We believe the presentation of these non-GAAP financial measures, provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our history results and those of our peers.

Not all companies use identical calculations or the same definitions of pre-tax, pre-provision net operating income before goodwill, pre-tax, pre-provision ROAA before goodwill and pre-tax, pre-provision ROAE before goodwill, so the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. These non-GAAP financial measures should be taken together with the corresponding GAAP measure and should not be considered a substitute for the GAAP measure. Reconciliations of the most directly comparable GAAP measures to these non-GAAP financial measurements are presented below.

Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908


	Three Months Ended

	December 31, 2024			September 30, 2024		June 30, 2024			March 31, 2024			December 31, 2023
	(In thousands)
Reconciliation of non-GAAP pre-tax, pre-provision income net of goodwill

Net (loss) income	$	(6,605	)	$	626	$	928		$	1,395		$	1,901
Excluding provision for (reversal of) credit losses		6,652			1,294		(16	)		(85	)		(65	)
Excluding (reversal of) provision for income taxes		(1,172	)		202		355			645			807
Pre-tax, pre-provision income (non-GAAP)	$	(1,125	)	$	2,122	$	1,267		$	1,955		$	2,643

Excluding goodwill impairment		4,119			–		–			–			–
Pre-tax, pre-provision income net of goodwill (non-GAAP)	$	2,994		$	2,122	$	1,267		$	1,955		$	2,643



	Three Months Ended

	December 31, 2024			September 30, 2024		June 30, 2024			March 31, 2024			December 31, 2023
	(In thousands)
Reconciliation of non-GAAP return on average assets

Average assets	$	1,098,890		$	1,098,469	$	1,078,700		$	1,087,960		$	1,123,057
(Loss) return on average assets (1)		-2.39%			0.23%		0.35%			0.51%			0.67%

Net (loss) income	$	(6,605	)	$	626	$	928		$	1,395		$	1,901
Excluding provision for (reversal of) credit losses		6,652			1,294		(16	)		(85	)		(65	)
Excluding (reversal of) provision for income taxes		(1,172	)		202		355			645			807
Pre-tax, pre-provision income (non-GAAP)	$	(1,125	)	$	2,122	$	1,267		$	1,955		$	2,643

Excluding goodwill impairment		4,119			–		–			–			–
Pre-tax, pre-provision income net of goodwill (non-GAAP)	$	2,994		$	2,122	$	1,267		$	1,955		$	2,643

Adjusted return on average assets (non-GAAP) (1)		1.08%			0.77%		0.47%			0.72%			0.93%

(1) Annualized.

	Three Months Ended

	December 31, 2024			September 30, 2024		June 30, 2024			March 31, 2024			December 31, 2023
	(In thousands)
Reconciliation of non-GAAP return on average shareholders’ equity

Average shareholders’ equity	$	101,313		$	99,962	$	97,548		$	97,471		$	94,096
(Loss) return on average shareholders’ equity (1)		-25.94%			2.48%		3.82%			5.74%			8.02%

Net (loss) income	$	(6,605	)	$	626	$	928		$	1,395		$	1,901
Excluding provision for (reversal of) credit losses		6,652			1,294		(16	)		(85	)		(65	)
Excluding (reversal of) provision for income taxes		(1,172	)		202		355			645			807
Pre-tax, pre-provision income (non-GAAP)	$	(1,125	)	$	2,122	$	1,267		$	1,955		$	2,643

Excluding goodwill impairment		4,119			–		–			–			–
Pre-tax, pre-provision income net of goodwill (non-GAAP)	$	2,994		$	2,122	$	1,267		$	1,955		$	2,643

Adjusted return on average shareholders’ equity (non-GAAP) (1)		11.76%			8.42%		5.21%			8.04%			11.14%

(1) Annualized.


SUMMIT STATE BANK
STATEMENTS OF INCOME
(In thousands except earnings per share data)

	Three Months Ended						Year Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

Interest and dividend income:
Interest and fees on loans	$	13,623		$	13,409		$	53,574		$	52,560
Interest on deposits with banks		655			792			2,060			4,410
Interest on investment securities		530			712			2,614			2,855
Dividends on FHLB stock		127			123			514			416
Total interest and dividend income		14,935			15,036			58,762			60,241
Interest expense:
Deposits		7,099			7,113			28,495			24,227
Federal Home Loan Bank advances		6			–			337			177
Junior subordinated debt		128			94			454			375
Total interest expense		7,233			7,207			29,286			24,779
Net interest income before provision for credit losses		7,702			7,829			29,476			35,462
Provision for (reversal of) credit losses on loans		6,646			(31	)		7,958			342
Provision for (reversal of) credit losses on unfunded loan commitments		8			(65	)		(91	)		(68	)
(Reversal of) provision for credit losses on investments		(2	)		31			(22	)		58
Net interest income after provision for (reversal of) credit
losses, unfunded loan commitments and investments		1,050			7,894			21,631			35,130
Non-interest income:
Service charges on deposit accounts		225			219			926			872
Rental income		61			54			241			193
Net gain on loan sales		857			–			2,114			2,481
Net gain on securities		6			–			6			–
FHLB prepayment fee		–			–			–			1,024
Other income		224			24			865			631
Total non-interest income		1,373			297			4,152			5,201
Non-interest expense:
Salaries and employee benefits		3,429			3,044			15,639			15,399
Occupancy and equipment		413			386			1,761			1,713
Goodwill impairment		4,119			–			4,119			–
Other expenses		2,239			2,053			7,889			7,938
Total non-interest expense		10,200			5,483			29,408			25,050
(Loss) income before provision for income taxes		(7,777	)		2,708			(3,625	)		15,281
(Reversal of) provision for income taxes		(1,172	)		807			31			4,459
Net (loss) income	$	(6,605	)	$	1,901		$	(3,656	)	$	10,822

Basic (loss) earnings per common share	$	(0.98	)	$	0.28		$	(0.54	)	$	1.62
Diluted (loss) earnings per common share	$	(0.98	)	$	0.28		$	(0.54	)	$	1.62

Basic weighted average shares of common stock outstanding		6,719			6,698			6,714			6,695
Diluted weighted average shares of common stock outstanding		6,719			6,698			6,714			6,698

SUMMIT STATE BANK
BALANCE SHEETS
(In thousands except share data)

	December 31, 2024		December 31, 2023
	(Unaudited)		(Unaudited)

ASSETS

Cash and due from banks	$	51,403	$	57,789
Total cash and cash equivalents		51,403		57,789

Investment securities:
Available-for-sale, less allowance for credit losses of $36 and $58
(at fair value; amortized cost of $80,887 in 2024 and $97,034 in 2023)		68,228		84,546

Loans, less allowance for credit losses of $13,769 in 2024 and $15,221 in 2023		904,999		938,626
Bank premises and equipment, net		5,155		5,316
Investment in Federal Home Loan Bank (FHLB) stock, at cost		5,889		5,541
Goodwill		–		4,119
Other real estate owned		5,130		–
Affordable housing tax credit investments		7,484		8,405
Accrued interest receivable and other assets		19,269		18,166

Total assets	$	1,067,557	$	1,122,508

LIABILITIES AND
SHAREHOLDERS’ EQUITY

Deposits:
Demand – non interest-bearing	$	185,756	$	201,909
Demand – interest-bearing		193,355		244,748
Savings		47,235		54,352
Money market		226,879		212,278
Time deposits that meet or exceed the FDIC insurance limit		70,717		63,159
Other time deposits		238,620		233,247
Total deposits		962,562		1,009,693

FHLB advances		–		–
Junior subordinated debt, net		5,935		5,920
Affordable housing commitment		583		4,094
Accrued interest payable and other liabilities		6,216		5,123

Total liabilities		975,296		1,024,830

Total shareholders’ equity		92,261		97,678

Total liabilities and shareholders’ equity	$	1,067,557	$	1,122,508


Financial Summary
(In thousands except per share data)

	As of and for the						As of and for the
	Three Months Ended						Year Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Statement of Income Data:
Net interest income	$	7,702		$	7,829		$	29,476		$	35,462
Provision for (reversal of) credit losses on loans		6,646			(31	)		7,958			342
Provision for (reversal of) credit losses on unfunded loan commitments		8			(65	)		(91	)		(68	)
(Reversal of) provision for credit losses on investments		(2	)		31			(22	)		58
Non-interest income		1,373			297			4,152			5,201
Non-interest expense		10,200			5,483			29,408			25,050
(Reversal of) provision for income taxes		(1,172	)		807			31			4,459
Net (loss) income	$	(6,605	)	$	1,901		$	(3,656	)	$	10,822

Selected per Common Share Data:
Basic earnings per common share	$	(0.98	)	$	0.28		$	(0.54	)	$	1.62
Diluted earnings per common share	$	(0.98	)	$	0.28		$	(0.54	)	$	1.62
Dividend per share	$	–		$	0.12		$	0.28		$	0.48
Book value per common share (1)	$	13.61		$	14.40		$	13.61		$	14.40

Selected Balance Sheet Data:
Assets	$	1,067,557		$	1,122,508		$	1,067,557		$	1,122,508
Loans, net		904,999			938,626			904,999			938,626
Deposits		962,562			1,009,693			962,562			1,009,693
Average assets		1,098,890			1,123,057			1,091,047			1,142,790
Average earning assets		1,064,872			1,089,808			1,058,766			1,110,801
Average shareholders’ equity		101,313			94,096			99,082			93,621
Nonperforming loans		27,754			44,206			27,754			44,206
Other real estate owned		5,130			–			–			–
Total nonperforming assets		32,884			44,206			32,884			44,206

Selected Ratios:
(Loss) return on average assets (2)		-2.39	%		0.67	%		-0.34	%		0.95	%
(Loss) return on average shareholders’ equity (2)		-25.94	%		8.02	%		-3.69	%		11.56	%
Efficiency ratio (3)		112.47	%		67.47	%		87.47	%		61.60	%
Net interest margin (2)		2.88	%		2.85	%		2.78	%		3.19	%
Common equity tier 1 capital ratio		10.19	%		9.90	%		10.19	%		9.90	%
Tier 1 capital ratio		10.19	%		9.90	%		10.19	%		9.90	%
Total capital ratio		11.94	%		11.75	%		11.94	%		11.75	%
Tier 1 leverage ratio		8.92	%		8.85	%		8.92	%		8.85	%
Common dividend payout ratio (4)		0.00	%		42.63	%		-51.81	%		30.05	%
Average shareholders’ equity to average assets		9.22	%		8.38	%		9.08	%		8.19	%
Nonperforming loans to total loans		3.02	%		4.63	%		3.02	%		4.63	%
Nonperforming assets to total assets		3.08	%		3.94	%		3.08	%		3.94	%
Allowance for credit losses to total loans		1.50	%		1.60	%		1.50	%		1.60	%
Allowance for credit losses to nonperforming loans		49.61	%		34.43	%		49.61	%		34.43	%

(1) Total shareholders’ equity divided by total common shares outstanding.
(2) Annualized.
(3) Non-interest expenses to net interest and non-interest income, net of securities gains.
(4) Common dividends divided by net (loss) income available for common shareholders.

The MIL Network –

January 29, 2025

MIL-OSI: CMD Portal Awards 2025: AFL wins ‘Most Improved Bond Issuer’ award

Source: GlobeNewswire (MIL-OSI)

Press release
28/01/2025

CMD Portal Awards 2025: AFL wins ‘Most Improved Bond Issuer’ award

AFL, the French local government funding agency, is rewarded for the second time by CMD Portal – a network of more than 35,000 bond market experts – and wins the “Most Improved Bond Issuer” prize, the most efficient bond issuer. This distinction reflects the bank’s proven ability to place its debt with a growing and diversified investor base across multiple currencies. Now well established as frequent bond issuer, AFL is on its way to become a significant borrower in the capital markets, offering investors the only diversified exposure to the French local public sector.

A funding program in full expansion for 10 years

Created 10 years ago by and for the French local authorities, AFL’s mission is to facilitate access to financing and is among the leading lenders to local governments.

Since its creation, the bank has been able to maintain its financial strength while expanding its operations. It has doubled its financing program, diversified its issuance currencies, and increased the frequency of both private placements and benchmark transactions with the objective to improve liquidity for investors. AFL’s bond issues are now located nearly on the entire Euro curve, which allows it to broaden its access to the market.

Ten years after the beginning of its activities, AFL’s balance sheet stands at nearly €11 billion, reflecting the dynamic growth in loan production granted to local authorities since its first bond issue in 2015.

Issuance of new products and expansion into new international markets

Since 2023, AFL has had the ability to issue callable bonds. On this segment, the bank has already and successfully completed six transactions of this type in 2024, with an average size of €37 million, totaling €221 million.

In April 2024, AFL entered the public Swiss Franc (CHF) market with an inaugural transaction of CHF 110 million. This strategic bond issuance broadened AFL’s already diverse investor base, which now spans France, Germany, Austria, Switzerland, the Benelux, the UK, Northern Europe, and Asia.

The institution now has a base of more than 300 international investors, including banks, private banks, fund managers, insurance companies, pension funds, and a growing number of central banks and official institutions.

Lastly, in December 2024, AFL issued €50 million of subordinated debt securities, with the aim of enabling it to deploy its business plan while strengthening its equity base.

2024 constitutes a pivotal year for AFL in two respects:

AFL was able to maintain its AA- rating when S&P downgraded France’s sovereign rating from AA to AA- in May 2024, leading the bank to now share the same as the French central government. AFL has thus strengthened its position compared to other public sector banking institutions.
Additionally, the HQLA 1 qualification granted by the ACPR in respect of for AFL’s debt on June 21, 2024, following the change in the risk weighting of French local authorities to 0%, has contributed to significantly enhancing the eligibility of AFL’s debt securities in the portfolios of investors, particularly banks.

Key Takeaways:

€11 billion in loans granted over the past 10 years

3rd largest lender to French local authorities

Recognized as a public development bank in 2021

HQLA 1 since June 2024

AA-/AA- (S&P/Fitch)
Same credit rating as the French government

About AFL

“The Company’s mission is to embody a responsible finance to strengthen the local world’s empowerment so as to better deliver the present and future needs of its inhabitants.”

By creating our bank, the first one that we own and manage, we, French local authorities, have decided to act to deepen decentralization. Our bank, Agence France Locale (AFL), is not a financial institution similar to any other. Created by and for local authorities, it aims to strengthen our freedom, our ability to develop projects and our responsibility as local public actors. Its culture of prudence spares us from the dangers of complexity and its governance from downward slides of conflicts of interest. The main objective is to provide local world with an access to cost-efficient resources, under total transparency. The principles of solidarity and equity drive us. We are convinced that together we go further. We decided that our institution would be agile, addressing all types of local authorities, from the largest regions to the smallest municipalities. We see profit as a means to maximize public spending, not as an end goal. Through AFL, we support a local world committed to take up social, economic, and environmental challenges. AFL strengthens our empowerment: to carry out projects in our territories, today and tomorrow, to the benefits of the inhabitants. We are proud to have a bank whose development is like us, even more responsible and sustainable. We are Agence France Locale.

Press contact
Justine GUIGUES – Press Relation Officer
justine.guigues@afl-banque.fr
+33 6 74 94 29 66

Attachment

2025.01.CP_AFL_Winner_CMD_Award

The MIL Network –

January 29, 2025

MIL-OSI: Behavioral Innovations Transforms Applied Behavior Analysis Scheduling Operations with CentralReach’s AI-Powered Scheduling Solution, CR ScheduleAI

Source: GlobeNewswire (MIL-OSI)

Fort Lauderdale, FL, Jan. 28, 2025 (GLOBE NEWSWIRE) — CentralReach, the leading provider of Autism and IDD Care software for ABA, multidisciplinary, and special education, shared that its CR ScheduleAI™ solution is helping customers such as Behavioral Innovations transform ABA scheduling with just a few clicks. Powered by the company’s proprietary AI agent, cari™, CR ScheduleAI maximizes ABA and multidisciplinary schedules analyzing hundreds of data points to match the right provider with the right client to enable CentralReach customers including Behavioral Innovations maximize authorization hours, Registered Behavior Technician (RBT) requested hours, and reduce burden on scheduling staff.

Amid the ongoing shortage of qualified clinicians and RBTs in autism and IDD care, where waitlists often span 6 to 18+ months, CR ScheduleAI helps schedulers maximize RBT-to-client availability to enable providers to meet the growing demand more efficiently. CR ScheduleAI automatically accounts for language preferences, preferred providers, location of services, drive time, authorized service hours, client and technician availability and cancellations, and more, allowing users to see a minimum of 20% increase in appointments and helping reduce extensive wait times that often lead to delayed interventions or inconsistent treatment.

“Before CR ScheduleAI, it took upwards of eight to ten hours to create a schedule personalized to match client preferences and meet clinical requirements and RBT requested hours, often resulting in inefficiencies and unfilled time slots for providers,” explained Jennifer Stanley, Senior Director of Business Optimization for Behavioral Innovation. “With CR ScheduleAI, we now experience a 75% time savings, allowing us to create schedules for 3,000 employees across 86 clinics more efficiently, improving clinic utilization rates and drastically reducing time spent on manual scheduling tasks.”

The solution is also adding new enhancements that will further optimize the scheduling process, including:

● Embedded Cancellations: Schedulers can now quickly reoptimize the schedule to account for one or multiple cancellations that could be due to employee turnover, client churn, and other unexpected factors.

● Interactive Drafts: Schedulers can now also interact, bulk edit, and partially publish an optimized schedule in real-time, making scenario planning even easier.

“The complexities and layers involved in ABA scheduling are immense and increase exponentially as you scale to serve more clients. There are overt losses to inadequate scheduling, like revenue and turnover, but also many hidden costs that practices are often unaware of until it’s too late,” said Chris Sullens, CEO of CentralReach. “And, while third party point solutions can offer some benefit, I know from my 10+ years building software for a scheduling-intensive logistics and field service company that maximum benefit can only be achieved with a deeply integrated agent-based scheduling solution that is integrated into a practice’s core workflow and has full access to data and constraints in real time. We have made significant investments over many years to create the automation layer necessary to power an enterprise-grade solution and the coming user experience enhancements in the first half of 2025 will make CR ScheduleAI even easier and more powerful than it is today. We’re proud to see the impact that CR ScheduleAI is having on customers’ ability to meet rising demand more efficiently and excited to see the impact it will have in helping to close the autism and IDD care gap as adoption continues to ramp.”

For more information on CR ScheduleAI visit: https://centralreach.com/products/scheduleai/

About CentralReach
CentralReach is the leading provider of autism and IDD care software, providing the only complete, end-to-end software and services platform that helps children and adults diagnosed with autism spectrum disorder (ASD) and related intellectual and developmental disabilities (IDD) – and those who serve them – unlock potential, achieve better outcomes, and live more independent lives. With its roots in Applied Behavior Analysis, the company is revolutionizing how the lifelong journey of autism and IDD care is enabled at home, school, and work with powerful and intuitive solutions purpose-built for each care setting.

Trusted by more than 185,000 professionals globally, CentralReach is committed to ongoing product advancement, market-leading industry expertise, world-class client satisfaction, and support of the autism and IDD community to propel autism and IDD care into a new era of excellence. For more information, please visit CentralReach.com or follow us on LinkedIn and Facebook.

The MIL Network –

January 29, 2025

MIL-OSI: JLT Mobile Computers AB changes management following discontinuation of subsidiary JLT Software Solutions AB

Source: GlobeNewswire (MIL-OSI)

Växjö, Sweden, January 28, 2025 * * * JLT Mobile Computers, a leading supplier of reliable computers for demanding environments, announces a change in management following the discontinuation of JLT Software Solutions, which was announced on January 17, 2025 (press release 1/17/2025).

The software development is now being integrated with the Group’s other product development for better cost-efficiency, management, and customer-driven development. This means that the operations of JLT Software Solutions AB will be discontinued, and Andreas Nivard, former CEO and CPO, is leaving the company.

Visit jltmobile.com for more information about products and services. Financial information can be found on the company’s investor pages.

About JLT Mobile Computers

JLT Mobile Computers is a leading supplier of rugged mobile computing devices and solutions for demanding environments. 30 years of development and manufacturing experience have enabled JLT to set the standard in rugged computing, combining outstanding product quality with expert service, support and solutions to ensure trouble-free business operations for customers in warehousing, transportation, manufacturing, mining, ports and agriculture. JLT operates globally from offices in Sweden, France, and the US, complemented by an extensive network of sales partners in local markets. The company was founded in 1994, and the share has been listed on the Nasdaq First North Growth Market stock exchange since 2002 under the symbol JLT. Eminova Fondkommission AB acts as Certified Adviser. Learn more at jltmobile.com.

The MIL Network –

January 29, 2025

MIL-OSI: Innovation: Infomaniak inaugurates a data center that recycles 100% of its energy and will heat 6,000 households a year for at least 20 years

Source: GlobeNewswire (MIL-OSI)

Yesterday, the Swiss cloud provider Infomaniak officially inaugurated its new data center, which has been recovering 100% of the electricity it uses since 11 November. Located in a residential area of Geneva, on an underground site of the participatory and eco-responsible cooperative of la Bistoquette, the data center has no impact on the landscape and recycles 100% of the local renewable energy it consumes. At full capacity, it will feed 1.7 MW (or 14.9 GWh/year) into the region’s heating network, enabling 6,000 Minergie-A households to be heated a year or 20,000 people to take a 5-minute shower every day. This new generation of data centers, which has already received a number of awards, has been documented by students from EPFL, IMD and the University of Lausanne with a view to making it open source and enabling it to be reproduced on a large scale.

Inauguration of the D4, a data center that is revolutionising the cloud industry

Infomaniak’s new data center, a symbol of technological innovation and sustainability, was officially inaugurated yesterday, with the public authorities and key project stakeholders in attendance. Their collective commitment was essential in making this world first a reality. The project exceeds the standards of similar infrastructures in terms of environmental integration and energy recovery.

Since 2 p.m. on 11 November 2024, all the electricity consumed by this structure, in the form of heat, has already been fed back into the district heating network of the Canton of Geneva. This achievement marks a key stage in the region’s energy transition, transforming an energy-intensive facility into an active player in energy recovery.

Currently operating at 25% of its potential capacity, Infomaniak’s data center will gradually increase its output to reach full capacity by 2028, guaranteeing a sustainable contribution to society for at least 20 years.

The future of the cloud: circular energy with no impact on the landscape

Having already won several awards for the energy efficiency of its infrastructures, which have been operating without air conditioning since 2013, Infomaniak is addressing four major challenges facing the cloud industry with this new data center model:

100% of the electricity used by the data center is reused to heat households via a district heating network.
The facility does not require additional water or air conditioning to be cooled.
It is built on an underground site in a residential area.
It has no impact on the landscape.

“In the real world, data centers convert electricity into heat. With the exponential growth of the cloud, this energy is currently being released into the atmosphere and wasted. There is an urgent need to upgrade this way of doing things, to connect these infrastructures to heating networks and adapt building standards,” explains Boris Siegenthaler, Infomaniak’s Founder and Chief Strategy Officer.

Nothing is wasted, everything is transformed

Unlike existing projects that recycle a fraction of the energy they consume, the system implemented by Infomaniak goes further.

All the electricity consumed (by servers, inverters, ventilation, etc.) is converted into heat at a temperature of 40 to 45°C. This heat is then transferred to an air/water exchanger, which integrates it into a hot water circuit. Heat pumps then raise its temperature to transfer the waste heat from the data center to the heating network.

The originality of the system lies in the use of both sides of the pump:

The gas in the heat pumps expands by capturing the energy in the water, which drops from 45°C to 28°C. This cooled water is fed into the air/water exchanger to cool the servers, eliminating the need for traditional air conditioning.
The gas in the pumps is then compressed to transmit energy to the district heating network, raising the water temperature to 67 °C in summer and 85 °C in winter to meet the needs of the district heating operator.

The recovery mechanism is therefore the same as the one that keeps the servers at an optimal operating temperature. The additional energy required to run the heat pumps is also recycled, and it is the cold released by this process that keeps the servers cool.

“Today, PUE, which measures the energy efficiency of data centers, is no longer sufficient in the face of the climate emergency. We also need to take ERE into account, which evaluates the energy actually consumed compared to the energy reused, as well as the ERF, which measures the proportion of the data center’s total energy that is reused for other purposes, such as district heating. Taken together, these three indicators provide a more complete picture of the energy impact of digital infrastructures,” explains Boris Siegenthaler, Infomaniak’s Founder and Chief Strategy Officer.

6,000 homes heated and 3,600 t CO₂e saved each year

At full capacity, the new data center will house some 10,000 servers in an underground area measuring 1,800 m². It will provide the heating network with 1.7 MW, equivalent to the energy needed to heat 6,000 Minergie-A households per year or allow 20,000 people to take a 5-minute shower every day.

Geneva will avoid having to burn 3,600 t CO₂e of natural gas per year or the equivalent of 5,500 t CO₂e of pellets per year, not to mention eliminate 211 lorries per year transporting 13 tonnes of material and the microparticles associated with pellet transport and combustion.

An economically neutral operation

In financial terms, recycling waste heat is a neutral operation for Infomaniak. Without the servers, this data center cost CHF 12 million, including a CHF 6 million advance from the cloud provider to adapt heat levels those required by heating network. Part of this CHF 6 million was provided by the Cantonal Energy Office of the Canton of Geneva (OCEN) and the heating network operator (SIG). The remainder will be gradually amortised by the heat produced by Infomaniak, at cost price.

From finding the site (June 2019) to commissioning the first servers (December 2023), the project took a total of four and a half years to complete, whereas Infomaniak would usually build a data center in two years. The main challenges involved were finding a location that was both secure and close to a district heating network capable of permanently absorbing the associated volume of heat, and negotiating a contract with the district heating network operator.

Good for Europe’s technological sovereignty

This data center strengthens Europe’s technological sovereignty and creates value for many local companies by relying on equipment manufactured exclusively in Europe, with the exception of the security cameras used:

Trane heat pumps (France)
Ebmpapst fans (Germany)
Siemens power rails (Germany)
Siemens switchboard (Germany)
Minkels server racks (Netherlands)
ABB inverters (Switzerland)
Margen generator (Italy)
Meyer-Burger solar panels (Switzerland/Germany)

The local economy will also benefit directly from the impact of this project.

A new generation of data centers that is open source

This innovation can be reproduced and the expertise gained during the course of the project has been made available free of charge. This model works, demonstrating to the cloud industry and policymakers that it is possible to double the value of energy from data centers. It also shows that the digital sector should no longer be seen as an end consumer of electricity, but as an actor in the energy transition.

Infomaniak’s new data center, which was awarded the Swiss Ethics Prize and the Sustainable Development Prize of the Canton of Geneva in 2023, has been documented by UNIL, IMD and EPFL as part of the e4s.center programme to illustrate its energy efficiency in real time and make it easier to reproduce. This work is available for free at https://d4project.org/ and includes:

A technical guide explaining how to replicate this data center model.
Real-time monitoring of data center operational performance
A summary for policymakers with information to improve regulations on the design and sustainability of data centers

Two new similar data centers already planned

To support its growth, Infomaniak is actively looking for heating networks for its future data centers. “We already have 1.1 MW ready to be fed into a heating network, and by 2028, a new data center of at least 3.3 MW will be needed to meet demand. The principle is simple: we buy electricity locally and provide our carbon-free waste heat free of charge,” explains Boris Siegenthaler.

Key figures

Average PUE: 1.09 (European average: 1.6)
ERE and ERF: see online
2 1.7 MW heat pumps
Total area: 1,800 m²
Total budget (without servers): CHF 12 million
Total energy recycled at full capacity: 1.7 MW
Number of servers at full capacity: approximately 10,000 (200 47U racks)
Capacity of the solar power plant linked to this data center: 130 kWp (364 modules)
GPUs currently installed in this data center: Nvidia L4, A100 and H100

Resources

The MIL Network –

January 29, 2025

MIL-OSI: Jeremy Michael Joins Guggenheim Securities to Expand Energy Investment Banking Practice

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 28, 2025 (GLOBE NEWSWIRE) — Guggenheim Securities, the investment banking and capital markets division of Guggenheim Partners, announced today that Jeremy Michael has joined the firm’s Energy, Power & Energy Transition investment banking business as a Senior Managing Director.

Mr. Michael brings more than two decades of investment banking experience to Guggenheim with a focus on upstream, midstream, and downstream energy. He joins the firm from Barclays where he served as Global Head of Natural Resources Investment Banking advising industry-leading companies and leading sector-defining transactions.

“We are pleased to welcome Jeremy to Guggenheim,” said Mark Van Lith, CEO of Guggenheim Securities. “Jeremy is a leading advisor in the energy sector and will play an important role as we continue to build our energy and power franchises. We look forward to his success at the firm.”

Mr. Michael earned his B.A. from Vanderbilt University.

About Guggenheim Securities

Guggenheim Securities is the investment banking and capital markets business of Guggenheim Partners, a global investment and advisory firm. Guggenheim Securities offers services that fall into four broad categories: Advisory, Financing, Sales and Trading, and Research. Guggenheim Securities is headquartered in New York, with additional offices in Atlanta, Boston, Chicago, Houston, London, Menlo Park, and San Francisco. For more information, please visit GuggenheimSecurities.com, follow us on LinkedIn or contact us at GSinfo@GuggenheimPartners.com or 212.518.9200.

About Guggenheim Partners

Guggenheim Partners is a diversified financial services firm that delivers value to its clients through two primary businesses: Guggenheim Investments, a premier global asset manager and investment advisor, and Guggenheim Securities, a leading investment banking and capital markets business. Guggenheim’s professionals are based in offices around the world, and our commitment is to deliver long-term results with excellence and integrity while advancing the strategic interests of our clients. Learn more at GuggenheimPartners.com, and follow us on LinkedIn and Twitter @GuggenheimPtnrs.

Media Contact

Steven Lee
Guggenheim Securities
212.293.2811
Steven.Lee@guggenheimpartners.com

The MIL Network –

January 29, 2025

MIL-OSI: Atomicwork Secures $25M in Series A Funding to Transform Enterprise IT with Agentic AI

Source: GlobeNewswire (MIL-OSI)

San Francisco, Jan. 28, 2025 (GLOBE NEWSWIRE) — Atomicwork, a leading innovator in agentic service management solutions for Enterprise IT, today announced that it has raised $25 million in their Series A funding round. The round was led by Khosla Ventures and Z47, with participation from Battery Ventures, Blume Ventures, and Peak XV Partners. This new infusion of capital accelerates Atomicwork’s mission to transform IT service management (ITSM) with its innovative AI-native platform that modernizes how businesses operate and drive growth.

A New Era for Enterprise IT Service Management
Today’s enterprises face a pivotal moment. As operations expand globally and digital systems multiply, traditional ITSM tools are reaching their limits. These legacy solutions – built for an earlier era of process management – can’t keep pace with modern business demands.

CEOs and CIOs recognize the need for transformative change. The challenge isn’t just about managing IT anymore – it’s about empowering organizations to thrive in an increasingly dynamic digital landscape.

Atomicwork’s agentic service management platform combines an enterprise knowledge graph with agentic AI to offload work from IT teams, allowing them to focus on driving business impact rather than managing everyday processes. By radically simplifying enterprise workflows, managing incidents in real-time, and enabling self-healing, Atomicwork is helping businesses stay ahead in today’s fast-moving digital business environment.

Atomicwork founders: (L to R): Kiran Darisi, Vijay Rayapati and Parsuram Vijayasankar.

“We are pioneering agentic service management to transform how companies manage their IT workflows and enterprise services. This investment is a significant milestone, validating our vision of a future where smarter IT teams drive business growth and companies are empowered by technology, not bogged down by it.” said Vijay Rayapati, co-founder and CEO of Atomicwork. “Our unified and adaptive self-service experience will enable businesses to move faster.”

Global businesses like Zuora and Pepper Money use Atomicwork to empower their teams with seamless service, intelligent automation, and actionable insights, driving productivity and transforming their digital workplace experience.

Backing by Industry Leaders
The funding round comes on the heels of strong product adoption and backing from 40+ global CIOs, CTOs and industry veterans.

“Atomicwork’s AI agents can autonomously handle everyday IT services, and employees can then focus on actually growing the business,” said Kanu Gulati of Khosla Ventures. “This is the AI innovation that large organizations need to radically transform how they work.”

“Atomicwork has built a remarkable team and proven technology, and we’ve witnessed firsthand how they’re transforming IT service management for global businesses. Their potential is immense to redefine the future of enterprise IT with Agentic AI.” said Pranay Desai, Managing Director at Z47. “Having been part of their journey since the seed round, we’re thrilled to continue our partnership and support their next phase of growth. ”

Future growth and expansion
These Series A funds will be used to further scale and deploy Enterprise AI agents and invest in GTM expansion. The company plans to enhance its platform support for key enterprise integrations and ensure seamless scalability.

“Enterprise IT is undergoing a radical transformation and Atomicwork’s agentic service management platform is in a great position to innovate in this space,” said Neeraj Agrawal, General Partner at Battery Ventures. “We are excited to be a part of the company’s journey as it continues to scale and innovate for enterprise IT teams.”

Ends

Media images can be found here.

About Atomicwork
Atomicwork helps enterprises reduce IT service costs and boost productivity through its agentic service management platform. Built for modern businesses, Atomicwork eliminates manual IT tasks, reducing resolution times by 90%, and empowers IT teams to focus on strategic initiatives that drive growth.

Trusted by leading enterprises, Atomicwork transforms enterprise service management while delivering exceptional employee experiences and accelerating business success. Headquartered in San Francisco, Atomicwork also has offices in Singapore and India. For more information please visit: www.atomicwork.com

The MIL Network –

January 29, 2025

MIL-OSI: Eagle Bancorp Montana Earns $3.4 Million, or $0.44 per Diluted Share, in the Fourth Quarter of 2024 and $9.8 Million, or $1.24 per Diluted Share for the Year 2024; Declares Quarterly Cash Dividend of $0.1425 Per Share

Source: GlobeNewswire (MIL-OSI)

HELENA, Mont., Jan. 28, 2025 (GLOBE NEWSWIRE) — Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana (the “Bank”), today reported net income of $3.4 million, or $0.44 per diluted share, in the fourth quarter of 2024, compared to $2.7 million, or $0.34 per diluted share, in the preceding quarter, and $2.2 million, or $0.28 per diluted share, in the fourth quarter of 2023. For the year ended December 31, 2024, net income was $9.8 million, or $1.24 per diluted share, compared to $10.1 million, or $1.29 per diluted share, in 2023.

Eagle’s board of directors declared a quarterly cash dividend of $0.1425 per share on January 23, 2025. The dividend will be payable March 7, 2025, to shareholders of record February 14, 2025. The current dividend represents an annualized yield of 3.93% based on recent market prices.

“Eagle’s fourth quarter operating results were highlighted by strong quarterly deposit growth, sound revenue generation, and net interest margin expansion,” said Laura F. Clark, President and CEO. “We continue to maintain a stable core deposit base, with non-CDs representing 72.4% of total deposits at year end. Additionally, we continue to maintain quality credit. While loan growth has moderated in recent quarters, we are anticipating steady single-digit loan growth in the year ahead.”

Fourth Quarter 2024 Highlights (at or for the three-month period ended December 31, 2024, except where noted):

Net income increased 26.7% to $3.4 million, or $0.44 per diluted share, in the fourth quarter of 2024, compared to $2.7 million, or $0.34 per diluted share, in the preceding quarter, and increased 58.6% compared to $2.2 million, or $0.28 per diluted share, in the fourth quarter a year ago.
Net interest margin (“NIM”) was 3.59% in the fourth quarter of 2024, a 25 basis point increase compared to 3.34% in the preceding quarter and a 27 basis point increase compared to the fourth quarter a year ago.
Revenues (net interest income before the provision for credit losses, plus noninterest income) increased 2.8% to $21.4 million in the fourth quarter of 2024, compared to $20.8 million in the preceding quarter and increased 1.7% compared to $21.0 million in the fourth quarter a year ago.
Total loans increased 2.4% to $1.52 billion, at December 31, 2024, compared to $1.48 billion a year earlier, and decreased 0.9% compared to $1.53 billion at September 30, 2024.
Total deposits increased $46.0 million or 2.8% to $1.68 billion at December 31, 2024, compared to a year earlier, and increased $30.7 million or 1.9%, compared to September 30, 2024.
The allowance for credit losses represented 1.11% of portfolio loans and 437.7% of nonperforming loans at December 31, 2024, compared to 1.11% of portfolio loans and 195.2% of nonperforming loans at December 31, 2023.

The Company’s available borrowing capacity was approximately $404.0 million at December 31, 2024, compared to $398.5 million at December 31, 2023.

	December 31, 2024				December 31, 2023
(Dollars in thousands)	Borrowings Outstanding		Remaining Borrowing Capacity			Borrowings Outstanding		Remaining Borrowing Capacity
Federal Home Loan Bank advances	$	140,930	$	276,664		$	175,737	$	266,017
Federal Reserve Bank discount window		–		27,349			–		32,472
Correspondent bank lines of credit		–		100,000			–		100,000
Total	$	140,930	$	404,013		$	175,737	$	398,489

The Company paid a quarterly cash dividend in the fourth quarter of $0.1425 per share on December 6, 2024, to shareholders of record November 15, 2024.

Balance Sheet Results
Eagle’s total assets increased 1.3% to $2.10 billion at December 31, 2024, compared to $2.08 billion a year ago, and decreased 2.0% compared to $2.15 billion three months earlier. The investment securities portfolio totaled $292.6 million at December 31, 2024, compared to $318.3 million a year ago, and $307.0 million at September 30, 2024.

Eagle originated $68.1 million in new residential mortgages during the quarter and sold $64.0 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.18%. This production compares to residential mortgage originations of $58.0 million in the preceding quarter with sales of $51.0 million and an average gross margin on sale of mortgage loans of approximately 3.31%. Mortgage volumes remain low as rates have continued to be elevated relative to rates on existing mortgages.

Total loans increased $36.2 million, or 2.4%, compared to a year ago, and decreased $14.0 million, or 0.9%, from three months earlier. Commercial real estate loans increased 6.1% to $646.0 million at December 31, 2024, compared to $608.7 million a year earlier. Commercial real estate loans were comprised of 71.4% non-owner occupied and 28.6% owner occupied at December 31, 2024. Agricultural and farmland loans increased 4.9% to $281.0 million at December 31, 2024, compared to $267.9 million a year earlier. Residential mortgage loans decreased 1.8% to $153.7 million, compared to $156.6 million a year earlier. Commercial loans increased 8.5% to $144.0 million, compared to $132.7 million a year ago. Commercial construction and development loans decreased 21.5% to $124.2 million, compared to $158.1 million a year ago. Home equity loans increased 12.2% to $97.5 million, residential construction loans increased 5.2% to $45.7 million, and consumer loans decreased 5.4% to $28.5 million, compared to a year ago.

“Similar to other community banks, our deposit mix has shifted towards higher yielding deposits over the last several quarters due to the higher interest rate environment. However, the recent Fed rate cuts have started to ease deposit pricing, and we anticipate this will continue as we move through this next rate cycle,” said Miranda Spaulding, CFO.

Total deposits increased to $1.68 billion at December 31, 2024, compared to $1.64 billion at December 31, 2023, and $1.65 billion at September 30, 2024. Noninterest-bearing checking accounts represented 24.9%, interest-bearing checking accounts represented 13.2%, savings accounts represented 12.5%, money market accounts comprised 21.8% and time certificates of deposit made up 27.6% of the total deposit portfolio at December 31, 2024. There were no brokered certificates at December 31, 2024, compared to $72.2 million at December 31, 2023, and $22.1 million at September 30, 2024. The average cost of total deposits was 1.71% in the fourth quarter of 2024, compared to 1.76% in the preceding quarter and 1.49% in the fourth quarter of 2023. The estimated amount of uninsured deposits was approximately $323.0 million, or 19% of total deposits, at December 31, 2024, compared to $307.0 million, or 18% of total deposits, at September 30, 2024.

Shareholders’ equity was $174.8 million at December 31, 2024, compared to $169.3 million a year earlier and $177.7 million three months earlier. Book value per share was $21.77 at December 31, 2024, compared to $21.11 a year earlier and $22.17 three months earlier. Tangible book value per share, a non-GAAP financial measure calculated by dividing shareholders’ equity, less goodwill and core deposit intangible, by common shares outstanding, was $16.88 at December 31, 2024, compared to $16.05 a year earlier and $17.23 three months earlier.

Operating Results
“The higher yields on interest earning assets combined with a lower cost of funds contributed to our 25 basis point NIM expansion during the quarter, compared to the preceding quarter,” said Spaulding. “We anticipate additional improvement in our cost of funds over the next several quarters.”

Eagle’s NIM was 3.59% in the fourth quarter of 2024, a 25 basis point increase compared to 3.34% in the preceding quarter and a 27 basis point improvement compared to the fourth quarter a year ago. The interest accretion on acquired loans totaled $161,000 and resulted in a four basis-point increase in the NIM during the fourth quarter of 2024, compared to $167,000 and a three basis-point increase in the NIM during the preceding quarter. Funding costs for the fourth quarter of 2024 were 2.69%, compared to 2.89% in the third quarter of 2024 and 2.58% in the fourth quarter of 2023. Average yields on interest earning assets for the fourth quarter of 2024 increased to 5.70%, compared to 5.66% in the third quarter of 2024 and 5.36% in the fourth quarter a year ago. For the year, the NIM was 3.42% compared to 3.51% for 2023.

Net interest income, before the provision for credit losses, increased 6.3% to $16.8 million in the fourth quarter of 2024, compared to $15.8 million in the third quarter of 2024, and increased 10.5% compared to $15.2 million in the fourth quarter of 2023. For the year, net interest income increased 1.5% to $63.4 million, compared to $62.5 million in 2023.

Fourth quarter revenues increased 2.8% to $21.4 million, compared to $20.8 million in the preceding quarter and increased 1.7% compared to $21.0 million in the fourth quarter a year ago. For the year 2024, revenues were $81.2 million, compared to $85.2 million in 2023. The decrease compared to a year ago was largely due to lower volumes in mortgage banking activity.

Total noninterest income decreased 8.2% to $4.6 million in the fourth quarter of 2024, compared to $5.0 million in the preceding quarter, and decreased 21.3% compared to $5.8 million in the fourth quarter a year ago. The decrease compared to the preceding quarter was largely due to income from bank owned life insurance of $724,000 recorded during the third quarter of 2024. Net mortgage banking income, the largest component of noninterest income, totaled $2.8 million in the fourth quarter of 2024, compared to $2.6 million in the preceding quarter and $3.7 million in the fourth quarter a year ago. This decrease compared to the fourth quarter a year ago was largely driven by a decline in net gain on sale of mortgage loans, which was impacted by lower mortgage loan volumes. For the year, noninterest income decreased 21.8% to $17.8 million, compared to $22.7 million in 2023. Net mortgage banking income decreased 33.1% to $10.0 million in 2024, compared to $15.0 million in 2023. These decreases were driven by a decline in net gain on sale of mortgage loans.

Eagle’s fourth quarter noninterest expense was $17.7 million, an increase of 2.5% compared to $17.3 million in the preceding quarter and a 6.3% decrease compared to $18.9 million in the fourth quarter a year ago. Lower salaries and employee benefits contributed to the decrease compared to the year ago quarter. For the year, noninterest expense decreased 3.9% to $69.3 million, compared to $72.1 million in 2023.

For the fourth quarter of 2024, the Company recorded income tax expense of $269,000. This compared to income tax expense of $529,000 in the preceding quarter and an income tax benefit of $315,000 in the fourth quarter of 2023. The effective tax rate for the year was 14.2% compared to 13.7% for the prior year and is due to the increase in proportion of tax-exempt income compared to pretax earnings, as well as tax credits from investments in low-income housing tax credit projects.

Credit Quality
Due to muted loan growth and positive economic factors within the CECL modeling, Eagle recorded a recapture in its provision for credit losses of $36,000 during the fourth quarter of 2024. This compared to a $277,000 provision for credit losses in the preceding quarter and $270,000 in the fourth quarter a year ago. The allowance for credit losses represented 437.7% of nonperforming loans at December 31, 2024, compared to 356.7% three months earlier and 195.2% a year earlier. Nonperforming loans were $3.9 million at December 31, 2024, $4.8 million at September 30, 2024, and $8.4 million a year earlier. Net loan charge-offs totaled $44,000 in the fourth quarter of 2024, compared to net loan charge-offs of $17,000 in the preceding quarter and net loan charge-offs of $10,000 in the fourth quarter a year ago. The allowance for credit losses was $16.9 million, or 1.11% of total loans, at December 31, 2024, compared to $17.1 million, or 1.12% of total loans, at September 30, 2024, and $16.4 million, or 1.11% of total loans, a year ago.

Capital Management
The ratio of tangible common shareholders’ equity (shareholders’ equity, less goodwill and core deposit intangible) to tangible assets (total assets, less goodwill and core deposit intangible) was 6.57% at December 31, 2024, up from 6.32% a year ago and 6.56% three months earlier. This ratio is a non-GAAP financial measure. For the most comparable GAAP financial measure, see “Reconciliation of Non-GAAP Financial Measures” below. As of December 31, 2024, the Bank’s regulatory capital was in excess of all applicable regulatory requirements and is deemed well capitalized. The Bank’s Tier 1 capital to adjusted total average assets was 10.07% as of December 31, 2024.

About the Company
Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana, and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in Montana through 29 banking offices. Additional information is available on the Bank’s website at www.opportunitybank.com. The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ Global Market under the symbol “EBMT.”

Forward Looking Statements
This release may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as “believe,” “will” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” These forward-looking statements include, but are not limited to statements of our goals, intentions, expectations and anticipations; statements regarding our business plans, prospects, mergers, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions and political events, either nationally or in our market areas, that are worse than expected; the emergence or continuation of widespread health emergencies or pandemics, including but not limited to vaccine efficacy and immunization rates, new variants, steps taken by governmental and other authorities to contain, mitigate and combat the pandemic, adverse effects on our employees, customers and third-party service providers, the increase in cyberattacks in the current work-from-home environment; the impact of volatility in the U.S. banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by governmental agencies in response thereto; the impact of any new regulatory, policy or enforcement developments resulting from the change in U.S. presidential administration; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on economic conditions and our business; an inability to access capital markets or maintain deposits or borrowing costs; competition among banks, financial holding companies and other traditional and non-traditional financial service providers; loan demand or residential and commercial real estate values in Montana; the concentration of our business in Montana; our ability to continue to increase and manage our commercial real estate, commercial business and agricultural loans; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee litigation); inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets that lead to impairment in the value of our investment securities and goodwill; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; our ability to implement new technologies and maintain secure and reliable technology systems including those that involve the Bank’s third-party vendors and service providers; cyber incidents, or theft or loss of Company or customer data or money; our ability to appropriately address social, environmental, and sustainability concerns that may arise from our business activities; the effect of our recent or future acquisitions, including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations, the outcome of any legal proceedings and the diversion of management time on issues related to the integration.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. All information set forth in this press release is current as of the date of this release and the company undertakes no duty or obligation to update this information.

Use of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States, or GAAP, in this release, including the Financial Ratios and Other Data contains non-GAAP financial measures. Non-GAAP financial measures include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common equity to tangible assets. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance, performance trends and financial condition, and to enhance investors’ overall understanding of such financial performance. In particular, the use of tangible book value per share and tangible common equity to tangible assets is prevalent among banking regulators, investors and analysts.

The numerator for the core efficiency ratio is calculated by subtracting acquisition costs and intangible asset amortization from noninterest expense. Tangible assets and tangible common shareholders’ equity are calculated by excluding intangible assets from assets and shareholders’ equity, respectively. For these financial measures, our intangible assets consist of goodwill and core deposit intangible. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding. We believe that this measure is consistent with the capital treatment by our bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios and present this measure to facilitate the comparison of the quality and composition of our capital over time and in comparison, to our competitors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. 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. Further, the non-GAAP financial measure of tangible book value per share should not be considered in isolation or as a substitute for book value per share or total shareholders’ equity determined in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Eagle strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Reconciliation of the GAAP and non-GAAP financial measures are presented below.

Balance Sheet
(Dollars in thousands, except per share data)				(Unaudited)
	December 31,			September 30,			December 31,
	2024			2024			2023

Assets:
Cash and due from banks	$	29,824		$	22,954		$	23,243
Interest bearing deposits in banks		1,735			19,035			1,302
Federal funds sold		–			200			–
Total cash and cash equivalents		31,559			42,189			24,545
Securities available-for-sale, at fair value		292,590			306,982			318,279
Federal Home Loan Bank (“FHLB”) stock		7,778			11,218			9,191
Federal Reserve Bank (“FRB”) stock		4,131			4,131			4,131
Mortgage loans held-for-sale, at fair value		13,368			13,429			11,432
Loans:
Real estate loans:
Residential 1-4 family		153,721			156,811			156,578
Residential 1-4 family construction		45,701			52,217			43,434
Commercial real estate		645,962			644,019			608,691
Commercial construction and development		124,211			125,323			158,132
Farmland		146,610			145,356			142,590
Other loans:
Home equity		97,543			93,646			86,932
Consumer		28,513			29,445			30,125
Commercial		144,039			143,190			132,709
Agricultural		134,346			144,645			125,298
Total loans		1,520,646			1,534,652			1,484,489
Allowance for credit losses		(16,850	)		(17,130	)		(16,440	)
Net loans		1,503,796			1,517,522			1,468,049
Accrued interest and dividends receivable		12,890			14,844			12,485
Mortgage servicing rights, net		15,376			15,443			15,853
Assets held-for-sale, at cost		960			257			–
Premises and equipment, net		101,540			100,297			94,282
Cash surrender value of life insurance, net		53,232			52,852			47,939
Goodwill		34,740			34,740			34,740
Core deposit intangible, net		4,499			4,834			5,880
Other assets		26,631			26,375			28,860
Total assets	$	2,103,090		$	2,145,113		$	2,075,666

Liabilities:
Deposit accounts:
Noninterest bearing	$	419,211		$	419,760		$	418,727
Interest bearing		1,262,017			1,230,752			1,216,468
Total deposits		1,681,228			1,650,512			1,635,195
Accrued expenses and other liabilities		47,018			38,593			36,462
FHLB advances and other borrowings		140,930			219,167			175,737
Other long-term debt, net		59,149			59,111			58,999
Total liabilities		1,928,325			1,967,383			1,906,393

Shareholders’ Equity:
Preferred stock (par value $0.01 per share; 1,000,000 shares
authorized; no shares issued or outstanding)		–			–			–
Common stock (par value $0.01; 20,000,000 shares authorized;
8,507,429 shares issued; 8,027,177, 8,016,784 and 8,016,784
shares outstanding at December 31, 2024, September 30, 2024, and
December 31, 2023, respectively		85			85			85
Additional paid-in capital		108,334			109,040			108,819
Unallocated common stock held by Employee Stock Ownership Plan		(4,011	)		(4,154	)		(4,583	)
Treasury stock, at cost (480,252, 490,645 and 490,645 shares at
December 31, 2024, September 30, 2024, and December 31, 2023, respectively)		(10,761	)		(11,124	)		(11,124	)
Retained earnings		101,264			98,979			96,021
Accumulated other comprehensive loss, net of tax		(20,146	)		(15,096	)		(19,945	)
Total shareholders’ equity		174,765			177,730			169,273
Total liabilities and shareholders’ equity	$	2,103,090		$	2,145,113		$	2,075,666

Income Statement				(Unaudited)						(Unaudited)
(Dollars in thousands, except per share data)	Three Months Ended									Years Ended
	December 31,			September 30,		December 31,				December 31,
	2024			2024		2023				2024			2023
Interest and dividend income:
Interest and fees on loans	$	23,756		$	23,802		$	21,481		$	92,282		$	79,423
Securities available-for-sale		2,475			2,598			2,790			10,428			11,376
FRB and FHLB dividends		308			266			247			1,085			727
Other interest income		148			94			23			416			89
Total interest and dividend income		26,687			26,760			24,541			104,211			91,615
Interest expense:
Interest expense on deposits		7,216			7,190			6,090			27,838			17,857
FHLB advances and other borrowings		2,005			3,084			2,569			10,211			8,562
Other long-term debt		676			684			684			2,724			2,719
Total interest expense		9,897			10,958			9,343			40,773			29,138
Net interest income		16,790			15,802			15,198			63,438			62,477
(Recapture) provision for credit losses		(36	)		277			270			518			1,456
Net interest income after provision for credit losses		16,826			15,525			14,928			62,920			61,021

Noninterest income:
Service charges on deposit accounts		387			430			444			1,645			1,757
Mortgage banking, net		2,818			2,602			3,718			10,014			14,970
Interchange and ATM fees		675			662			663			2,540			2,524
Appreciation in cash surrender value of life insurance		408			1,038			301			2,054			1,466
Net loss on sale of available-for-sale securities		(141	)		–			–			(141	)		(222	)
Other noninterest income		425			251			686			1,664			2,227
Total noninterest income		4,572			4,983			5,812			17,776			22,722

Noninterest expense:
Salaries and employee benefits		9,830			9,894			11,359			39,715			42,973
Occupancy and equipment expense		2,194			2,134			1,972			8,531			8,072
Data processing		1,715			1,587			1,673			6,209			5,943
Software subscriptions		576			511			519			2,127			2,064
Advertising		466			277			445			1,312			1,375
Amortization		337			337			386			1,391			1,587
Loan costs		372			385			461			1,567			1,887
FDIC insurance premiums		287			295			288			1,165			1,150
Professional and examination fees		596			438			438			1,941			1,922
Other noninterest expense		1,323			1,412			1,350			5,348			5,116
Total noninterest expense		17,696			17,270			18,891			69,306			72,089

Income before provision for income taxes		3,702			3,238			1,849			11,390			11,654
Provision (benefit) for income taxes		269			529			(315	)		1,612			1,598
Net income	$	3,433		$	2,709		$	2,164		$	9,778		$	10,056

Basic earnings per common share	$	0.44		$	0.35		$	0.28		$	1.25		$	1.29
Diluted earnings per common share	$	0.44		$	0.34		$	0.28		$	1.24		$	1.29

Basic weighted average shares outstanding		7,862,279			7,836,921			7,809,274			7,838,822			7,793,352

Diluted weighted average shares outstanding		7,868,507			7,860,138			7,815,022			7,853,792			7,798,244

ADDITIONAL FINANCIAL INFORMATION				(Unaudited)
(Dollars in thousands, except per share data)	Three Months Ended or Years Ended
	December 31,			September 30,		December 31,
	2024			2024		2023

Mortgage Banking Activity (For the quarter):
Net gain on sale of mortgage loans	$	2,036		$	1,691	$	2,845
Net change in fair value of loans held-for-sale and derivatives		(3	)		159		(40	)
Mortgage servicing income, net		785			752		913
Mortgage banking, net	$	2,818		$	2,602	$	3,718

Mortgage Banking Activity (Year-to-date):
Net gain on sale of mortgage loans	$	6,741				$	11,396
Net change in fair value of loans held-for-sale and derivatives		(5	)				194
Mortgage servicing income, net		3,278					3,380
Mortgage banking, net	$	10,014				$	14,970

Performance Ratios (For the quarter):
Return on average assets		0.65%			0.51%		0.42%
Return on average equity		8.12%			6.56%		5.68%
Yield on average interest earning assets		5.70%			5.66%		5.36%
Cost of funds		2.69%			2.89%		2.58%
Net interest margin		3.59%			3.34%		3.32%
Core efficiency ratio*		81.26%			81.47%		88.08%

Performance Ratios (Year-to-date):
Return on average assets		0.47%					0.50%
Return on average equity		5.94%					6.33%
Yield on average interest earning assets		5.62%					5.14%
Cost of funds		2.76%					2.11%
Net interest margin		3.42%					3.51%
Core efficiency ratio*		83.62%					82.75%

* The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of acquisition
costs and intangible asset amortization, by the sum of net interest income and non-interest income.



ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands, except per share data)

Asset Quality Ratios and Data:	As of or for the Three Months Ended
	December 31,			September 30,		December 31,
	2024			2024		2023

Nonaccrual loans	$	3,227		$	3,859	$	8,395
Loans 90 days past due and still accruing		623			944		26
Total nonperforming loans		3,850			4,803		8,421
Other real estate owned and other repossessed assets		45			4		5
Total nonperforming assets	$	3,895		$	4,807	$	8,426

Nonperforming loans / portfolio loans		0.25%			0.31%		0.57%
Nonperforming assets / assets		0.19%			0.22%		0.41%
Allowance for credit losses / portfolio loans		1.11%			1.12%		1.11%
Allowance for credit losses/ nonperforming loans		437.66%			356.65%		195.23%
Gross loan charge-offs for the quarter	$	51		$	22	$	11
Gross loan recoveries for the quarter	$	7		$	5	$	1
Net loan charge-offs for the quarter	$	44		$	17	$	10


	December 31,			September 30,		December 31,
	2024			2024		2023
Capital Data (At quarter end):
Common shareholders’ equity (book value) per share	$	21.77		$	22.17	$	21.11
Tangible book value per share**	$	16.88		$	17.23	$	16.05
Shares outstanding		8,027,177			8,016,784		8,016,784
Tangible common equity to tangible assets***		6.57%			6.56%		6.32%

Other Information:
Average investment securities for the quarter	$	300,088		$	305,730	$	306,678
Average investment securities year-to-date	$	306,538		$	308,688	$	328,533
Average loans for the quarter ****	$	1,533,686		$	1,547,246	$	1,494,181
Average loans year-to-date ****	$	1,523,384		$	1,519,951	$	1,436,672
Average earning assets for the quarter	$	1,858,078		$	1,874,669	$	1,817,419
Average earning assets year-to-date	$	1,850,120		$	1,847,468	$	1,780,727
Average total assets for the quarter	$	2,107,357		$	2,116,839	$	2,062,267
Average total assets year-to-date	$	2,092,051		$	2,086,951	$	2,015,586
Average deposits for the quarter	$	1,671,653		$	1,622,254	$	1,626,598
Average deposits year-to-date	$	1,636,390		$	1,624,636	$	1,603,861
Average equity for the quarter	$	169,054		$	165,162	$	152,516
Average equity year-to-date	$	164,591		$	163,106	$	158,807



** The tangible book value per share is a non-GAAP ratio that is calculated by dividing shareholders’ equity,
less goodwill and core deposit intangible, by common shares outstanding.
*** The tangible common equity to tangible assets is a non-GAAP ratio that is calculated by dividing shareholders’
equity, less goodwill and core deposit intangible, by total assets, less goodwill and core deposit intangible.
**** Includes loans held for sale

Reconciliation of Non-GAAP Financial Measures

Core Efficiency Ratio				(Unaudited)						(Unaudited)
(Dollars in thousands)	Three Months Ended									Years Ended
	December 31,			September 30,			December 31,			December 31,
	2024			2024			2023			2024			2023
Calculation of Core Efficiency Ratio:
Noninterest expense	$	17,696		$	17,270		$	18,891		$	69,306		$	72,089
Intangible asset amortization		(337	)		(337	)		(386	)		(1,391	)		(1,587	)
Core efficiency ratio numerator		17,359			16,933			18,505			67,915			70,502

Net interest income		16,790			15,802			15,198			63,438			62,477
Noninterest income		4,572			4,983			5,812			17,776			22,722
Core efficiency ratio denominator		21,362			20,785			21,010			81,214			85,199

Core efficiency ratio (non-GAAP)		81.26%			81.47%			88.08%			83.62%			82.75%

Tangible Book Value and Tangible Assets	(Unaudited)
(Dollars in thousands, except per share data)	December 31,			September 30,			December 31,
	2024			2024			2023
Tangible Book Value:
Shareholders’ equity	$	174,765		$	177,730		$	169,273
Goodwill and core deposit intangible, net		(39,239	)		(39,574	)	$	(40,620	)
Tangible common shareholders’ equity (non-GAAP)	$	135,526		$	138,156		$	128,653

Common shares outstanding at end of period		8,027,177			8,016,784			8,016,784

Common shareholders’ equity (book value) per share (GAAP)	$	21.77		$	22.17		$	21.11

Tangible common shareholders’ equity (tangible book value)
per share (non-GAAP)	$	16.88		$	17.23		$	16.05

Tangible Assets:
Total assets	$	2,103,090		$	2,145,113		$	2,075,666
Goodwill and core deposit intangible, net		(39,239	)		(39,574	)		(40,620	)
Tangible assets (non-GAAP)	$	2,063,851		$	2,105,539		$	2,035,046

Tangible common shareholders’ equity to tangible assets
(non-GAAP)		6.57%			6.56%			6.32%

Contacts:	Laura F. Clark, President and CEO (406) 457-4007 Miranda J. Spaulding, SVP and CFO (406) 441-5010

The MIL Network –

January 29, 2025

MIL-OSI: Netcompany – Reporting of transactions made by persons discharging managerial responsibilities

Source: GlobeNewswire (MIL-OSI)

Company announcement
No. 07/2025

28 January 2025

Reporting of transactions made by persons discharging managerial responsibilities
Pursuant to the Market Abuse Regulation, Article 19, Netcompany Group A/S, CVR no. 39 48 89 14 (“Netcompany”), hereby notifies receipt of information of the following transactions made by persons discharging managerial responsibilities in Netcompany in connection with automatic vesting of Restricted Stock Units (“RSUs”) granted under the terms of the Long-Term Incentive Plan (the “LTIP”).

1.	Details of the person discharging managerial responsibilities/person closely associated
a)	Name	André Rogaczewski
2.	Reason for the notification
a)	Position/status	CEO
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Netcompany Group A/S, CVR no. 39488914
b)	LEI	5299006DEGAWX1Z1X779
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the financial instrument, type of instrument Identification code	Shares DK0060952919
b)	Nature of the transaction	Acquisition following the automatic vesting of 1,935 RSUs granted under the terms of the LTIP, resulting in the delivery of 1,935 shares previously held by Netcompany as treasury shares
c)	Price(s) and volume(s)	Price(s) Volume(s) DKK 0 1,935
d)	Aggregated information Aggregated volume Price	N/A
e)	Date of the transaction	28 January 2025
f)	Place of the transaction	Outside a trading venue (XOFF)

1.	Details of the person discharging managerial responsibilities/person closely associated
a)	Name	Claus Jørgensen
2.	Reason for the notification
a)	Position/status	COO
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Netcompany Group A/S, CVR no. 39488914
b)	LEI	5299006DEGAWX1Z1X779
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the financial instrument, type of instrument Identification code	Shares DK0060952919
b)	Nature of the transaction	Acquisition following the automatic vesting of 1,935 RSUs granted under the terms of the LTIP, resulting in the delivery of 1,935 shares previously held by Netcompany as treasury shares
c)	Price(s) and volume(s)	Price(s) Volume(s) DKK 0 1,935
d)	Aggregated information Aggregated volume Price	N/A
e)	Date of the transaction	28 January 2025
f)	Place of the transaction	Outside a trading venue (XOFF)

1.	Details of the person discharging managerial responsibilities/person closely associated
a)	Name	Thomas Johansen
2.	Reason for the notification
a)	Position/status	CFO
b)	Initial notification/Amendment	Initial notification
3.	Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
a)	Name	Netcompany Group A/S, CVR no. 39488914
b)	LEI	5299006DEGAWX1Z1X779
4.	Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
a)	Description of the financial instrument, type of instrument Identification code	Shares DK0060952919
b)	Nature of the transaction	Acquisition following the automatic vesting of 1,075 RSUs granted under the terms of the LTIP, resulting in the delivery of 1,075 shares previously held by Netcompany as treasury shares
c)	Price(s) and volume(s)	Price(s) Volume(s) DKK 0 1,075
d)	Aggregated information Aggregated volume Price	N/A
e)	Date of the transaction	28 January 2025
f)	Place of the transaction	Outside a trading venue (XOFF)

Additional information
For additional information, please contact:

Netcompany Group A/S
Thomas Johansen, CFO, +45 51 19 32 24
Frederikke Linde, Head of IR, +45 60 62 60 87

Attachment

07. Netcompany – Reporting of transactions made by persons discharging managerial responsibilities

The MIL Network –

January 29, 2025

MIL-OSI: Coastal Financial Corporation Announces Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

EVERETT, Wash., Jan. 28, 2025 (GLOBE NEWSWIRE) — Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, “Coastal”, “we”, “our”, or “us”), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank with an industry leading banking as a service (“BaaS”) segment, today reported unaudited financial results for the quarter ended December 31, 2024, including net income of $13.4 million, or $0.94 per diluted common share, compared to $13.5 million, or $0.97 per diluted common share, for the three months ended September 30, 2024 and $45.2 million, or $3.26 per diluted common share, for the year ended December 31, 2024, compared to $44.6 million, or $3.27 per diluted common share for the year ended December 31, 2023.

Management Discussion of the Quarter and Full-year Results

“2024 was highlighted by the completion of our $98.0 million capital raise during the fourth quarter, which we will utilize to support growth of the Bank including in our CCBX segment,” said CEO Eric Sprink. “We saw high quality net loan growth of $67.7 million despite selling $845.5 million in loans during the fourth quarter, and our CCBX program fee income continued to increase which was up 56.9% for full-year 2024 relative to the prior year. We continue to invest heavily in CCBX to support future growth, and we are pleased to have three letters of intent (“LOI”) signed going into 2025 with an active pipeline.”

Key Points for Fourth Quarter and Our Go-Forward Strategy

Completed Capital Raise Allows CCBX Growth to Continue. During the fourth quarter of 2024, we completed a $98.0 million common equity raise, which was priced at $71.00/share. Proceeds will be used for general corporate purposes and to support growth of the Bank including in our CCBX segment. As of December 31, 2024 we had three signed LOIs and continue to have an active pipeline for 2025. The growth in common-equity tier 1 and total risk-based capital to 12.04% and 14.67%, respectively, includes the benefit of the capital raise.
Strong Annual Growth in CCBX Program Fees. Total BaaS program fee income was $25.6 million for the year ended December 31, 2024, an increase of $9.3 million, or 56.9%, from the year ended December 31, 2023, and is representative of growth in partner transaction activity and expanded product offerings within our CCBX operating segment. Trends in CCBX noninterest income were also positive during the quarter, with total program fees of $8.2 million for the three months ended December 31, 2024, an increase of $1.8 million, or 27.6%, from the three months ended September 30, 2024.
Investments for Growth Continues. Total non-interest expense of $64.2 million was down $1.4 million, or 2.1%, as compared to $65.6 million in the third quarter of 2024, mainly driven by lower BaaS loan expense, partially offset by higher salaries and employee benefits, point of sale expense, and legal and professional expenses. As we increase the number of new CCBX partners and programs launching in 2025, we expect that expenses will tend to be front-loaded with a focus on compliance and operational risk before any new program reaches significant revenues.
Off Balance Sheet Activity Update. During the fourth quarter of 2024, we sold $845.5 million of loans, the majority of which were credit card receivables, and swept $273.2 million of deposits off balance-sheet. We are able to retain a portion of the fee income on these sold credit card loans. As of December 31, 2024 there were 182,449 credit cards with fee earning potential, an increase of 101,023 compared to the quarter ended September 30, 2024 and an increase of 172,400 from December 31, 2023.
Continued Monitoring of CCBX Risk. We remain fully indemnified against fraud and 98.7% indemnified against credit risk with our CCBX partners as of year-end of 2024.

Fourth Quarter 2024 Financial Highlights

The tables below outline some of our key operating metrics.

	Three Months Ended
(Dollars in thousands, except share and per share data; unaudited)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Income Statement Data:
Interest and dividend income	$	96,587		$	105,079		$	97,487		$	90,472		$	88,243
Interest expense		30,071			32,892			31,250			29,536			28,586
Net interest income		66,516			72,187			66,237			60,936			59,657
Provision for credit losses		61,867			70,257			62,325			83,158			60,789
Net interest (expense)/ income after provision for credit losses		4,649			1,930			3,912			(22,222	)		(1,132	)
Noninterest income		76,756			80,068			69,918			86,955			64,694
Noninterest expense		64,206			65,616			58,809			56,018			51,703
Provision for income tax		3,832			2,926			3,425			1,915			2,847
Net income		13,367			13,456			11,596			6,800			9,012

	As of and for the Three Month Period
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Balance Sheet Data:
Cash and cash equivalents	$	452,513		$	484,026		$	487,245		$	515,128		$	483,128
Investment securities		47,321			48,620			49,213			50,090			150,364
Loans held for sale		20,600			7,565			—			797			—
Loans receivable		3,486,565			3,418,832			3,326,460			3,199,554			3,026,092
Allowance for credit losses		(176,994	)		(170,263	)		(147,914	)		(139,258	)		(116,958	)
Total assets		4,121,208			4,065,821			3,961,546			3,865,258			3,753,366
Interest bearing deposits		3,057,808			3,047,861			2,949,643			2,888,867			2,735,161
Noninterest bearing deposits		527,524			579,427			593,789			574,112			625,202
Core deposits ⁽¹⁾		3,123,434			3,190,869			3,528,339			3,447,864			3,342,004
Total deposits		3,585,332			3,627,288			3,543,432			3,462,979			3,360,363
Total borrowings		47,884			47,847			47,810			47,771			47,734
Total shareholders’ equity		438,704			331,930			316,693			303,709			294,978

Share and Per Share Data ⁽²⁾:
Earnings per share – basic	$	0.97		$	1.00		$	0.86		$	0.51		$	0.68
Earnings per share – diluted	$	0.94		$	0.97		$	0.84		$	0.50		$	0.66
Dividends per share		—			—			—			—			—
Book value per share ⁽³⁾	$	29.37		$	24.51		$	23.54		$	22.65		$	22.17
Tangible book value per share ⁽⁴⁾	$	29.37		$	24.51		$	23.54		$	22.65		$	22.17
Weighted avg outstanding shares – basic		13,828,605			13,447,066			13,412,667			13,340,997			13,286,828
Weighted avg outstanding shares – diluted		14,268,229			13,822,270			13,736,508			13,676,917			13,676,513
Shares outstanding at end of period		14,935,298			13,543,282			13,453,805			13,407,320			13,304,339
Stock options outstanding at end of period		186,354			198,370			286,119			309,069			354,969

See footnotes that follow the tables below

	As of and for the Three Month Period
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Credit Quality Data:
Nonperforming assets ⁽⁵⁾ to total assets		1.52	%		1.63	%		1.34	%		1.42	%		1.43	%
Nonperforming assets ⁽⁵⁾ to loans receivable and OREO		1.80	%		1.94	%		1.60	%		1.71	%		1.78	%
Nonperforming loans ⁽⁵⁾ to total loans receivable		1.80	%		1.94	%		1.60	%		1.71	%		1.78	%
Allowance for credit losses to nonperforming loans		282.5	%		256.5	%		278.1	%		253.8	%		217.2	%
Allowance for credit losses to total loans receivable		5.08	%		4.98	%		4.45	%		4.35	%		3.86	%
Gross charge-offs	$	61,585		$	53,305		$	55,207		$	58,994		$	47,652
Gross recoveries	$	5,646		$	4,069		$	1,973		$	1,776		$	2,781
Net charge-offs to average loans ⁽⁶⁾		6.51	%		5.65	%		6.57	%		7.34	%		5.92	%

Capital Ratios:
Company
Tier 1 leverage capital		10.78	%		8.40	%		8.31	%		8.24	%		8.10	%
Common equity Tier 1 risk-based capital		12.04	%		9.24	%		9.03	%		8.98	%		9.10	%
Tier 1 risk-based capital		12.14	%		9.34	%		9.13	%		9.08	%		9.20	%
Total risk-based capital		14.67	%		11.89	%		11.70	%		11.70	%		11.87	%
Bank
Tier 1 leverage capital		10.64	%		9.29	%		9.24	%		9.19	%		9.06	%
Common equity Tier 1 risk-based capital		11.99	%		10.34	%		10.15	%		10.14	%		10.30	%
Tier 1 risk-based capital		11.99	%		10.34	%		10.15	%		10.14	%		10.30	%
Total risk-based capital		13.28	%		11.63	%		11.44	%		11.43	%		11.58	%

⁽¹⁾Core deposits are defined as all deposits excluding brokered and time deposits.
⁽²⁾Share and per share amounts are based on total actual or average common shares outstanding, as applicable.
⁽³⁾We calculate book value per share as total shareholders’ equity at the end of the relevant period divided by the outstanding number of our common shares at the end of each period.
⁽⁴⁾Tangible book value per share is a non-GAAP financial measure. We calculate tangible book value per share as total shareholders’ equity at the end of the relevant period, less goodwill and other intangible assets, divided by the outstanding number of our common shares at the end of each period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets as of any of the dates indicated. As a result, tangible book value per share is the same as book value per share as of each of the dates indicated.
⁽⁵⁾Nonperforming assets and nonperforming loans include loans 90+ days past due and accruing interest.
⁽⁶⁾Annualized calculations.

Key Performance Ratios

Return on average assets (“ROA”) was 1.30% for the quarter ended December 31, 2024 compared to 1.34% and 0.97% for the quarters ended September 30, 2024 and December 31, 2023, respectively. ROA for the quarter ended December 31, 2024, decreased 0.04% and increased 0.33% compared to September 30, 2024 and December 31, 2023, respectively. Noninterest expenses were lower for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 largely due to a decrease in BaaS loan expense, which is directly related to the amount of interest earned on CCBX loans, and higher than the quarter ended December 31, 2023 largely due to an increase in salaries and employee benefits, data processing and software licenses, legal and professional expenses and point of sale expenses, all of which are related to the growth of Company and investments in technology and risk management.

Yield on earning assets and yield on loans receivable decreased 1.14% and 0.99%, respectively, for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024. This decrease is due to a combination of factors. We continue to refine our credit approach with partners, widening the scope of loans that we are moving to nonaccrual, which decreased loan interest income in the quarter ended December 31, 2024 as compared to prior quarters. Average loans receivable as of December 31, 2024 decreased $45.4 million compared to September 30, 2024 as we continue to sell CCBX loans as part of our on-going strategy to manage the loan portfolio and credit quality. New loans are being booked with enhanced credit standards, which typically results in a lower interest rate than some of the higher risk loans that have paid off or we have chosen to sell.

The following table shows the Company’s key performance ratios for the periods indicated.

	Three Months Ended					Twelve Months Ended
(unaudited)	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024	December 31, 2023	December 31, 2024	December 31, 2023

Return on average assets ⁽¹⁾	1.30%	1.34%	1.21%	0.73%	0.97%	1.15%	1.28%
Return on average equity ⁽¹⁾	14.90%	16.67%	15.22%	9.21%	12.35%	14.11%	16.41%
Yield on earnings assets ⁽¹⁾	9.65%	10.79%	10.49%	10.07%	9.77%	10.25%	9.82%
Yield on loans receivable ⁽¹⁾	10.44%	11.43%	11.23%	10.85%	10.71%	10.99%	10.60%
Cost of funds ⁽¹⁾	3.24%	3.62%	3.60%	3.52%	3.39%	3.49%	2.91%
Cost of deposits ⁽¹⁾	3.21%	3.59%	3.58%	3.49%	3.36%	3.46%	2.87%
Net interest margin ⁽¹⁾	6.65%	7.41%	7.13%	6.78%	6.61%	6.99%	7.10%
Noninterest expense to average assets ⁽¹⁾	6.23%	6.54%	6.14%	6.04%	5.56%	6.24%	5.90%
Noninterest income to average assets ⁽¹⁾	7.45%	7.98%	7.30%	9.38%	6.95%	8.00%	5.97%
Efficiency ratio	44.81%	43.10%	43.19%	37.88%	41.58%	42.21%	45.92%
Loans receivable to deposits ⁽²⁾	97.82%	94.46%	93.88%	92.42%	90.05%	97.8%	90.1%

⁽¹⁾Annualized calculations shown for quarterly periods presented.
⁽²⁾Includes loans held for sale.

Management Outlook; CEO Eric Sprink

“As we look forward to 2025, our strategy involves selectively expanding our current base of CCBX partners while continuing to invest in and enhance our technology and risk management infrastructure. This will enable us to support the next phase of growth within CCBX more efficiently. Additionally, we are focused on growing noninterest income through increased transaction activity and new product offerings with our established partners. We plan to continue selling credit card loans while retaining a portion of the fee income for our role in processing transactions, which offers an additional source of noninterest income without adding on-balance-sheet risk. We believe that by increasing noninterest income, we can mitigate the uncertainties associated with fluctuating interest rates and provide a more stable income stream in the future.” said CEO Eric Sprink.

Coastal Financial Corporation Overview

The Company has one main subsidiary, the Bank which consists of three segments: CCBX, the community bank and treasury & administration. The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities, and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.

CCBX Performance Update

Our CCBX segment continues to evolve, and we have 24 relationships, at varying stages, including three signed letters of intent as of December 31, 2024. We continue to refine the criteria for CCBX partnerships, exploring relationships with larger more established partners, with experienced management teams, existing customer bases and strong financial positions and will continue to exit relationships where it makes sense for us to do so.

As we explore relationships with new partners we plan to continue expanding product offerings with our existing CCBX partners. As we become more proficient in the BaaS space we aim to cultivate new relationships that align with our long-term goals. We believe that a strategy of adding new partnerships and launching new products with existing partners positions us to reach a wide and established customer base with a modest increase in regulatory risk given that we have already vetted existing partners and have an operational history. Increases in partner activity/transaction counts is positively impacting noninterest income and we expect that trend to continue as products launched earlier in the year gain traction. We plan to continue selling loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card balances, and plan to continue this strategy to provide an on-going and passive revenue stream with no on balance sheet risk.

The following table illustrates the activity and evolution in CCBX relationships for the periods presented.

	As of
(unaudited)	December 31, 2024	September 30, 2024	December 31, 2023
Active	19	19	19
Friends and family / testing	1	1	1
Implementation / onboarding	1	1	1
Signed letters of intent	3	1	0
Wind down – active but preparing to exit relationship	0	0	0
Total CCBX relationships	24	22	21

CCBX loans increased $82.3 million, or 5.4%, to $1.60 billion despite selling $845.5 million loans during the three months ended December 31, 2024. In accordance with the program agreement for one partner, effective April 1, 2024, the portion of the CCBX portfolio that we are responsible for losses on decreased from 10% to 5%. At December 31, 2024 the portion of this portfolio for which we are responsible represented $20.6 million in loans.

The following table details the CCBX loan portfolio:

CCBX	As of
	December 31, 2024					September 30, 2024					December 31, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Commercial and industrial loans:
Capital call lines	$	109,017		6.8	%	$	103,924		6.8	%	$	87,494		7.3	%
All other commercial & industrial loans		33,961		2.1			36,494		2.4			54,298		4.5
Real estate loans:
Residential real estate loans		267,707		16.7			265,402		17.5			238,035		19.9
Consumer and other loans:
Credit cards		528,554		33.0			633,691		41.6			505,837		42.3
Other consumer and other loans		664,780		41.4			482,228		31.7			310,574		26.0
Gross CCBX loans receivable		1,604,019		100.0	%		1,521,739		100.0	%		1,196,238		100.0	%
Net deferred origination (fees) costs		(442	)				(447	)				(300	)
Loans receivable	$	1,603,577				$	1,521,292				$	1,195,938
Loan Yield – CCBX ⁽¹⁾⁽²⁾		15.28	%				17.35	%				17.36	%

⁽¹⁾CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

The increase in CCBX loans in the quarter ended December 31, 2024, includes an increase of $77.4 million or 6.9%, in consumer and other loans, an increase of $5.1 million, or 4.9%, in capital call lines as a result of normal balance fluctuations and business activities, and an increase of $2.3 million, or 0.9%, in residential real estate loans. We continue to monitor and manage the CCBX loan portfolio, and sold $845.5 million in CCBX loans during the quarter ended December 31, 2024 compared to sales of $423.7 million in the quarter ended September 30, 2024. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and generate off balance sheet fee income.

CCBX loan yield decreased 2.06% for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 as a result of our widening the scope of loans that we are moving to nonaccrual, which decreased loan interest income in the quarter ended December 31, 2024. Also contributing to the decrease are lower interest rates on new CCBX loans, which are replacing higher risk and higher rate loans that have paid off or were sold as part of our strategy to manage the loan portfolio and credit quality. The recent decrease in the Fed funds interest rate further contributed to the change.

The following chart show the growth in credit card accounts that we are able to generate fee income from. This includes accounts with balances, which are included in our loan totals, and accounts that have been sold and have no corresponding balance in our loan totals, but that we are still able to generate fee income on.

The following table details the CCBX deposit portfolio:

CCBX	As of
	December 31, 2024					September 30, 2024					December 31, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Demand, noninterest bearing	$	55,686		2.7	%	$	60,655		2.9	%	$	63,630		3.4	%
Interest bearing demand and money market		1,958,459		94.9			1,991,858		94.6			1,794,168		96.3
Savings		5,710		0.3			5,204		0.3			4,964		0.3
Total core deposits		2,019,855		97.9			2,057,717		97.8			1,862,762		100.0
Other deposits		44,233		2.1			47,046		2.2			—		—
Total CCBX deposits	$	2,064,088		100.0	%	$	2,104,763		100.0	%	$	1,862,762		100.0	%
Cost of deposits ⁽¹⁾		4.19	%				4.82	%				4.90	%

⁽¹⁾Cost of deposits is annualized for the three months ended for each period presented.

CCBX deposits decreased $40.7 million, or 1.9%, in the three months ended December 31, 2024 to $2.06 billion as a result of normal balance fluctuations. This excludes the $273.2 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and sweep purposes, compared to $214.5 million for the quarter ended September 30, 2024. Amounts in excess of FDIC insurance coverage are transferred, using a third party facilitator/vendor sweep product, to participating financial institutions.

Community Bank Performance Update

In the quarter ended December 31, 2024, the community bank saw net loans decrease $14.6 million, or 0.8%, to $1.88 billion.

The following table details the Community Bank loan portfolio:

Community Bank	As of
	December 31, 2024					September 30, 2024					December 31, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Commercial and industrial loans	$	150,395		8.0	%	$	152,161		8.0	%	$	149,502		8.2	%
Real estate loans:
Construction, land and land development loans		148,198		7.8			163,051		8.6			157,100		8.5
Residential real estate loans		202,064		10.7			212,467		11.2			225,391		12.3
Commercial real estate loans		1,374,801		72.8			1,362,452		71.5			1,303,533		70.9
Consumer and other loans:
Other consumer and other loans		13,542		0.7			14,173		0.7			1,628		0.1
Gross Community Bank loans receivable		1,889,000		100.0	%		1,904,304		100.0	%		1,837,154		100.0	%
Net deferred origination fees		(6,012	)				(6,764	)				(7,000	)
Loans receivable	$	1,882,988				$	1,897,540				$	1,830,154
Loan Yield⁽¹⁾		6.53	%				6.64	%				6.32	%

⁽¹⁾Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

Community bank loans decreased $14.9 million in construction, land and land development loans, decreased $1.8 million in commercial and industrial loans and decreased $631,000 in consumer and other loans, and were partially offset by an increase in commercial real estate loans of $12.3 million during the quarter ended December 31, 2024.

The following table details the community bank deposit portfolio:

Community Bank	As of
	December 31, 2024					September 30, 2024					December 31, 2023
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Demand, noninterest bearing	$	471,838		31.0	%	$	518,772		34.1	%	$	561,572		37.5	%
Interest bearing demand and money market		570,625		37.5			552,108		36.3			846,072		56.5
Savings		61,116		4.0			62,272		4.1			71,598		4.8
Total core deposits		1,103,579		72.5			1,133,152		74.5			1,479,242		98.8
Other deposits		400,118		26.3			373,681		24.5			1		0.0
Time deposits less than $100,000		5,920		0.4			6,305		0.4			8,109		0.5
Time deposits $100,000 and over		11,627		0.8			9,387		0.6			10,249		0.7
Total Community Bank deposits	$	1,521,244		100.0	%	$	1,522,525		100.0	%	$	1,497,601		100.0	%
Cost of deposits⁽¹⁾		1.86	%				1.92	%				1.57	%

⁽¹⁾Cost of deposits is annualized for the three months ended for each period presented.

Community bank deposits decreased $1.3 million, or 0.1%, during the three months ended December 31, 2024 to $1.52 billion as result of normal balance fluctuations. The community bank segment includes noninterest bearing deposits of $471.8 million, or 31.0%, of total community bank deposits, resulting in a cost of deposits of 1.86%, which compared to 1.92% for the quarter ended September 30, 2024, largely due to the decreases in the Fed funds rate late in the third quarter and during the fourth quarter of 2024. The cost of community bank deposits are projected to decline further as the Fed funds rate had a decrease of 0.25%, which occurred in December 2024 and the full quarterly effect of that decrease will not be recognized until the first quarter of 2025.

Net Interest Income and Margin Discussion

Net interest income was $66.5 million for the quarter ended December 31, 2024, a decrease of $5.7 million, or 7.9%, from $72.2 million for the quarter ended September 30, 2024, and an increase of $6.9 million, or 11.5%, from $59.7 million for the quarter ended December 31, 2023. The decrease in net interest income compared to September 30, 2024, was a result of a decrease in average loans receivable as a result of selling $845.5 million in CCBX loans during the quarter ended December 31, 2024, the recent decrease in the Fed funds interest rate, and continued enhancements to our partner credit practices that resulted in a reduction of interest income on loans. The increase in net interest income compared to December 31, 2023 was largely related to increased yield on loans resulting from higher interest rates and growth in higher yielding loans, partially offset by an increase in cost of funds relating to higher interest rates and growth in interest bearing deposits.

Net interest margin was 6.65% for the three months ended December 31, 2024, compared to 7.41% for the three months ended September 30, 2024, largely due to lower loan yield. Net interest margin, net of BaaS loan expense, (A reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release.) was 4.16% for the three months ended December 31, 2024, compared to 4.06% for the three months ended September 30, 2024. Net interest margin was 6.61% for the three months ended December 31, 2023. The increase in net interest margin for the three months ended December 31, 2024 compared to the three months ended December 31, 2023 was largely due to an increase in loan yield, partially offset by higher interest rates on interest bearing deposits. Interest and fees on loans receivable decreased $9.9 million, or 9.9%, to $89.7 million for the three months ended December 31, 2024, compared to $99.6 million for the three months ended September 30, 2024, as a result of loan sales and a decrease in the Fed funds interest rate. Additionally, as we continue to refine our credit approach with partners, we are widening the scope of loans that we are moving to nonaccrual which decreased interest income in the quarter ended December 31, 2024 and lowered loan yield and net interest margin; however this also decreased BaaS loan expense (which is in noninterest expense) resulting in no impact to net income. Interest and fees on loans receivable increased $8.6 million, or 10.5%, compared to $81.2 million for the three months ended December 31, 2023, due to an increase in outstanding balances and higher interest rates. Net interest margin, net of Baas loan expense (A reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release.) increased 0.10% for the three months ended December 31, 2024, compared to the three months ended September 30, 2024 and increased 0.25% compared the three months ended December 31, 2023.

The following tables illustrate how net interest margin and loan yield is affected by BaaS loan expense:

Consolidated	As of and for the Three Months Ended									As of and for the Twelve Months Ended
(dollars in thousands; unaudited)	December 31 2024			September 30 2024			December 31 2023			December 31 2024			December 31 2023
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		6.65	%		7.41	%		6.61	%		6.99	%		7.10	%
Earning assets		3,980,078			3,875,911			3,581,772			3,802,275			3,364,406
Net interest income (GAAP)		66,516			72,187			59,657			265,876			238,727
Less: BaaS loan expense		(24,859	)		(32,612	)		(24,310	)		(111,384	)		(86,900	)
Net interest income, net of BaaS loan expense⁽²⁾	$	41,657		$	39,575		$	35,347		$	154,492		$	151,827
Net interest margin, net of BaaS loan expense ⁽¹⁾⁽²⁾		4.16	%		4.06	%		3.92	%		4.06	%		4.51	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		10.44	%		11.43	%		10.71	%		10.99	%		10.60	%
Total average loans receivable	$	3,419,476		$	3,464,871		$	3,007,289		$	3,320,582		$	2,936,908
Interest and earned fee income on loans (GAAP)		89,714			99,590			81,159			364,869			311,441
BaaS loan expense		(24,859	)		(32,612	)		(24,310	)		(111,384	)		(86,900	)
Net loan income⁽²⁾	$	64,855		$	66,978		$	56,849		$	253,485		$	224,541
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾⁽²⁾		7.55	%		7.69	%		7.50	%		7.63	%		7.65	%

⁽¹⁾ Annualized calculations shown for periods presented.
⁽²⁾ A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Average investment securities decreased $820,000 to $48.2 million compared to the three months ended September 30, 2024 and decreased $101.5 million compared to the three months ended December 31, 2023 as a result of principal paydowns and maturing securities.

Cost of funds was 3.24% for the quarter ended December 31, 2024, a decrease of 38 basis points from the quarter ended September 30, 2024 and a decrease of 16 basis points from the quarter ended December 31, 2023. Cost of deposits for the quarter ended December 31, 2024 was 3.21%, compared to 3.59% for the quarter ended September 30, 2024, and 3.36% for the quarter ended December 31, 2023. The decreased cost of funds and deposits compared to September 30, 2024 and December 31, 2023 was largely due to the recent reductions in the Fed funds rate.

The following table summarizes the average yield on loans receivable and cost of deposits:

	For the Three Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023
	Yield on Loans ⁽²⁾	Cost of Deposits ⁽²⁾	Yield on Loans ⁽²⁾	Cost of Deposits ⁽²⁾	Yield on Loans ⁽²⁾	Cost of Deposits ⁽²⁾
Community Bank	6.53%	1.86%	6.64%	1.92%	6.32%	1.57%
CCBX ⁽¹⁾	15.28%	4.19%	17.35%	4.82%	17.36%	4.90%
Consolidated	10.44%	3.21%	11.43%	3.59%	10.71%	3.36%

⁽¹⁾Annualized calculations for periods shown for credit and fraud enhancements and originating & servicing CCBX loans. To determine Net BaaS loan income earned from CCBX loan relationships, the Company takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income which can be compared to interest income on the Company’s community bank loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾Annualized calculations for periods shown.

The following table illustrates how BaaS loan interest income is affected by BaaS loan expense resulting in net BaaS loan income and the associated yield:

	For the Three Months Ended
	December 31, 2024			September 30, 2024				December 31, 2023
(dollars in thousands, unaudited)	Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾	Income / Expense		Income / expense divided by average CCBX loans⁽²⁾		Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾
BaaS loan interest income	$	58,671	15.28%	$	67,692	17.35	%	$	52,327	17.36%
Less: BaaS loan expense		24,859	6.48%		32,612	8.36	%		24,310	8.06%
Net BaaS loan income ⁽¹⁾	$	33,812	8.81%	$	35,080	8.99	%	$	28,017	9.30%
Average BaaS Loans⁽³⁾	$	1,527,178		$	1,552,443			$	1,196,137

⁽¹⁾ A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
⁽²⁾ Annualized calculations shown for quarterly periods presented.
⁽³⁾ Includes loans held for sale.

Noninterest Income Discussion

Noninterest income was $76.8 million for the three months ended December 31, 2024, a decrease of $3.3 million from $80.1 million for the three months ended September 30, 2024, and an increase of $12.1 million from $64.7 million for the three months ended December 31, 2023. The decrease in noninterest income for the quarter ended December 31, 2024 as compared to the quarter ended September 30, 2024 was primarily due to a decrease of $3.3 million in total BaaS income. The $3.3 million decrease in total BaaS income included an $8.0 million decrease in BaaS credit enhancements related to the provision for credit losses, partially offset by a a $3.0 million increase in BaaS fraud enhancements and an increase of $1.8 million in BaaS program income. The $1.8 million increase in BaaS program income is largely due to higher reimbursement of expenses as well as an increase in transaction fees and interchange fees, our primary BaaS source for recurring fee income, as well as higher reimbursement of expenses (see “Appendix B” for more information on the accounting for BaaS allowance for credit losses and credit and fraud enhancements).

The $12.1 million increase in noninterest income over the quarter ended December 31, 2023 was primarily due to a $7.9 million increase in BaaS credit and fraud enhancements and an increase of $3.8 million in BaaS program income.

Noninterest Expense Discussion
Total noninterest expense decreased $1.4 million to $64.2 million for the three months ended December 31, 2024, compared to $65.6 million for the three months ended September 30, 2024, and increased $12.5 million from $51.7 million for the three months ended December 31, 2023. The decrease in noninterest expense for the quarter ended December 31, 2024, as compared to the quarter ended September 30, 2024, was primarily due to a $4.8 million decrease in BaaS expense from a $7.8 million decrease in BaaS loan expense, partially offset by a $3.0 million increase in BaaS fraud expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, and originating & servicing CCBX loans. BaaS fraud expense represents non-credit fraud losses on partner’s customer loan and deposit accounts. A portion of this expense is realized during the quarter in which the loss occurs, and a portion is estimated based on historical or other information from our partners. Other variances that partially offset the net decrease in noninterest expense include an increase of $1.4 million in point of sale expenses as a result of increased partner transaction activity, an increase of $893,000 in salaries and employee benefits and an increase of $1.0 million in legal and professional fees as part of our continued investments in technology and risk management.

The increase in noninterest expenses for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 was largely due to an increase of $4.8 million in BaaS partner expense primarily from a $4.3 million increase in BaaS fraud expense, a $549,000 increase in BaaS loan expense, a $2.0 million increase in legal and professional expenses, a $1.8 million increase in point of sale expenses, a $1.5 million increase in salary and employee benefits, and a $1.2 million increase in data processing and software licenses due to enhancements in technology.

Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and all reimbursement of expenses from our CCBX partner in noninterest income. The following table reflects the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partners:

	Three Months Ended
	December 31,		September 30,		December 31,
(dollars in thousands; unaudited)	2024		2024		2023
Total noninterest expense (GAAP)	$	64,206	$	65,616	$	51,703
Less: BaaS loan expense		24,859		32,612		24,310
Less: BaaS fraud expense		5,043		2,084		779
Less: Reimbursement of expenses (Baas)		3,468		1,843		1,076
Noninterest expense, net of Baas loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) ⁽¹⁾	$	30,836	$	29,077	$	25,538

⁽¹⁾ A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Provision for Income Taxes

The provision for income taxes was $3.8 million for the three months ended December 31, 2024, $2.9 million for the three months ended September 30, 2024 and $2.8 million for the fourth quarter of 2023. The income tax provision was higher for the three months ended December 31, 2024 compared to the quarter ended September 30, 2024 as a result of the deductibility of certain equity awards which reduced tax expense during the quarter ended September 30, 2024 compared to the quarter ended December 31, 2024 despite net income being higher fairly even, and higher than the quarter ended December 31, 2023, primarily due to higher net income compared to that quarter, partially offset by the deductibility of certain equity awards.

The Company is subject to various state taxes that are assessed as CCBX activities and employees expand into other states, which has increased the overall tax rate used in calculating the provision for income taxes in the current and future periods. The Company uses a federal statutory tax rate of 21.0% as a basis for calculating provision for federal income taxes and 2.63% for calculating the provision for state income taxes.

Financial Condition Overview

Total assets increased $55.4 million, or 1.4%, to $4.12 billion at December 31, 2024 compared to $4.07 billion at September 30, 2024. The increase is primarily due to stronger loan growth, partially offset by lower cash balances. Total loans receivable increased $67.7 million to $3.49 billion at December 31, 2024, from $3.42 billion at September 30, 2024.

As of December 31, 2024, the Company had the capacity to borrow up to a total of $642.1 million from the Federal Reserve Bank discount window and Federal Home Loan Bank, and an additional $50.0 million from a correspondent bank. There were no borrowings outstanding on these lines as of December 31, 2024.

The Company completed a $98.0 million capital raise during the quarter ended December 31, 2024. After contributing $50.0 million to the Bank, the Company had a cash balance of $47.7 million as of December 31, 2024, which is retained for general operating purposes, including debt repayment, and for funding $480,000 in commitments to bank technology investment funds.

Uninsured deposits were $543.0 million as of December 31, 2024, compared to $542.2 million as of September 30, 2024.

Total shareholders’ equity as of December 31, 2024 increased $106.8 million since September 30, 2024. The increase in shareholders’ equity was primarily due to an increase of $93.4 million in common stock outstanding as a result of the aforementioned capital raise and, to a lessor extent, equity awards exercised during the three months ended December 31, 2024 combined with $13.4 million in net earnings.

The Company and the Bank remained well capitalized at December 31, 2024, as summarized in the following table.

(unaudited)	Coastal Community Bank	Coastal Financial Corporation	Minimum Well Capitalized Ratios under Prompt Corrective Action ⁽¹⁾
Tier 1 Leverage Capital (to average assets)	10.64%	10.78%	5.00%
Common Equity Tier 1 Capital (to risk-weighted assets)	11.99%	12.04%	6.50%
Tier 1 Capital (to risk-weighted assets)	11.99%	12.14%	8.00%
Total Capital (to risk-weighted assets)	13.28%	14.67%	10.00%

⁽¹⁾ Presents the minimum capital ratios for an insured depository institution, such as the Bank, to be considered well capitalized under the Prompt Corrective Action framework. The minimum requirements for the Company to be considered well capitalized under Regulation Y include to maintain, on a consolidated basis, a total risk-based capital ratio of 10.0 percent or greater and a tier 1 risk-based capital ratio of 6.0 percent or greater.

Asset Quality

The total allowance for credit losses was $177.0 million and 5.08% of loans receivable at December 31, 2024 compared to $170.3 million and 4.98% at September 30, 2024 and $117.0 million and 3.86% at December 31, 2023. The allowance for credit loss allocated to the CCBX portfolio was $158.1 million and 9.86% of CCBX loans receivable at December 31, 2024, with $18.9 million of allowance for credit loss allocated to the community bank or 1.00% of total community bank loans receivable.

The following table details the allocation of the allowance for credit loss as of the period indicated:

	As of December 31, 2024									As of September 30, 2024									As of December 31, 2023
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Loans receivable	$	1,882,988		$	1,603,577		$	3,486,565		$	1,897,540		$	1,521,292		$	3,418,832		$	1,830,154		$	1,195,938		$	3,026,092
Allowance for credit losses		(18,924	)		(158,070	)		(176,994	)		(20,132	)		(150,131	)		(170,263	)		(21,595	)		(95,363	)		(116,958	)
Allowance for credit losses to total loans receivable		1.00	%		9.86	%		5.08	%		1.06	%		9.87	%		4.98	%		1.18	%		7.97	%		3.86	%

Net charge-offs totaled $55.9 million for the quarter ended December 31, 2024, compared to $49.2 million for the quarter ended September 30, 2024 and $44.9 million for the quarter ended December 31, 2023. Net charge-offs as a percent of average loans increased to 6.51% for the quarter ended December 31, 2024 compared to 5.65% for the quarter ended September 30, 2024. CCBX partner agreements provide for a credit enhancement that covers the net-charge-offs on CCBX loans and negative deposit accounts by indemnifying or reimbursing incurred losses, except in accordance with the program agreement for one partner where the Company was responsible for credit losses on approximately 5% of a $324.6 million loan portfolio. At December 31, 2024, our portion of this portfolio represented $20.6 million in loans. Net charge-offs for this $20.6 million in loans were $1.1 million for the three months ended December 31, 2024, compared to $1.1 million for the three months ended September 30, 2024 and $1.5 million for the three months ended December 31, 2023.

The following table details net charge-offs for the community bank and CCBX for the period indicated:

	Three Months Ended
	December 31, 2024									September 30, 2024									December 31, 2023
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Gross charge-offs	$	139		$	61,446		$	61,585		$	398		$	52,907		$	53,305		$	2		$	47,650		$	47,652
Gross recoveries		(3	)		(5,643	)		(5,646	)		(3	)		(4,066	)		(4,069	)		(4	)		(2,777	)		(2,781	)
Net charge-offs	$	136		$	55,803		$	55,939		$	395		$	48,841		$	49,236		$	(2	)	$	44,873		$	44,871
Net charge-offs to average loans ⁽¹⁾		0.03	%		14.54	%		6.51	%		0.08	%		12.52	%		5.65	%		0.00	%		14.88	%		5.92	%

⁽¹⁾ Annualized calculations shown for periods presented.

During the quarter ended December 31, 2024, a $63.7 million provision for credit losses was recorded for CCBX partner loans, compared to the $72.1 million provision for credit losses was recorded for CCBX partner loans for the quarter ended September 30, 2024, the provision was based on management’s analysis, bringing the CCBX allowance for credit losses to $158.1 million at December 31, 2024 compared to $150.1 million at September 30, 2024. The increase in the allowance is due to the addition of new loans, partially offset by loan sales. CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by indemnifying or reimbursing incurred losses.

In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX credit losses and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Expected losses are recorded in the allowance for credit losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. If our partner is unable to fulfill their contracted obligations then the Bank could be exposed to additional credit losses. Management regularly evaluates and manages this counterparty risk.

The factors used in management’s analysis for community bank credit losses indicated that a provision recapture of $1.1 million and was needed for the quarter ended December 31, 2024 compared to a provision recapture of $519,000 and provision of $277,000 for the quarters ended September 30, 2024 and December 31, 2023, respectively. The recapture in the current period was due to the decrease in the community bank loan portfolio combined with an improvement in the forward look, which is driven by the future projected unemployment and GDP curves, which flattened since last quarter, lessening the impact of this factor.

The following table details the provision expense/(recapture) for the community bank and CCBX for the period indicated:

	Three Months Ended
(dollars in thousands; unaudited)	December 31, 2024			September 30, 2024			December 31, 2023
Community bank	$	(1,071	)	$	(519	)	$	277
CCBX		63,741			72,104			60,467
Total provision expense	$	62,670		$	71,585		$	60,744

A recapture for unfunded commitments of $803,000 was recorded for the quarter ended December 31, 2024 as a result of a decrease in the overall available balance combined with an improvement in the reserve rates.

At December 31, 2024, our nonperforming assets were $62.7 million, or 1.52%, of total assets, compared to $66.4 million, or 1.63%, of total assets, at September 30, 2024, and $53.8 million, or 1.43%, of total assets, at December 31, 2023. These ratios are impacted by nonperforming CCBX loans that are covered by CCBX partner credit enhancements. As of December 31, 2024, $60.8 million of the $62.6 million in nonperforming CCBX loans were covered by CCBX partner credit enhancements described above.

Nonperforming assets decreased $3.7 million during the quarter ended December 31, 2024, compared to the quarter ended September 30, 2024. This change is due to a decrease in CCBX and community bank nonaccrual loans. Community bank nonperforming loans decreased $1.0 million from September 30, 2024 to $100,000 as of December 31, 2024, and CCBX nonperforming loans decreased $2.7 million to $62.6 million from September 30, 2024. The decrease in CCBX nonperforming loans is due to an decrease of $570,000 in nonaccrual loans from September 30, 2024 to $19.5 million. Some CCBX partners have a collection practice that places certain loans on nonaccrual status to improve collectability. $17.2 million of these loans are less than 90 days past due as of December 31, 2024. Additionally, there was a $2.2 million decrease in CCBX loans that are past due 90 days or more and still accruing interest. As a result of the type of loans (primarily consumer loans) originated through our CCBX partners we anticipate that balances 90 days past due or more and still accruing will generally increase as those loan portfolios grow. Installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and are reported as substandard, 90 days or more days past due and still accruing. There were no repossessed assets or other real estate owned at December 31, 2024. Our nonperforming loans to loans receivable ratio was 1.80% at December 31, 2024, compared to 1.94% at September 30, 2024, and 1.78% at December 31, 2023.

For the quarter ended December 31, 2024, there were $136,000 community bank net charge-offs and $55.8 million in net charge-offs were recorded on CCBX loans. These CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses.

The following table details the Company’s nonperforming assets for the periods indicated.

Consolidated	As of
(dollars in thousands; unaudited)	December 31, 2024			September 30, 2024			December 31, 2023
Nonaccrual loans:
Commercial and industrial loans	$	334		$	531		$	—
Real estate loans:
Residential real estate		—			44			170
Commercial real estate		—			831			7,145
Consumer and other loans:
Credit cards		10,262			7,987			—
Other consumer and other loans		8,967			11,713			—
Total nonaccrual loans		19,563			21,106			7,315
Accruing loans past due 90 days or more:
Commercial & industrial loans		1,006			1,566			2,086
Real estate loans:
Residential real estate loans		2,608			3,025			1,115
Consumer and other loans:
Credit cards		34,490			34,562			34,835
Other consumer and other loans		4,989			6,111			8,488
Total accruing loans past due 90 days or more		43,093			45,264			46,524
Total nonperforming loans		62,656			66,370			53,839
Real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	62,656		$	66,370		$	53,839
Total nonaccrual loans to loans receivable		0.56	%		0.62	%		0.24	%
Total nonperforming loans to loans receivable		1.80	%		1.94	%		1.78	%
Total nonperforming assets to total assets		1.52	%		1.63	%		1.43	%

The following tables detail the CCBX and community bank nonperforming assets which are included in the total nonperforming assets table above.

CCBX	As of
(dollars in thousands; unaudited)	December 31, 2024			September 30, 2024			December 31, 2023
Nonaccrual loans:
Commercial and industrial loans:
All other commercial & industrial loans	$	234		$	333		$	—
Consumer and other loans:
Credit cards		10,262			7,987			—
Other consumer and other loans		8,967			11,713			—
Total nonaccrual loans		19,463			20,033			—
Accruing loans past due 90 days or more:
Commercial & industrial loans		1,006			1,566			2,086
Real estate loans:
Residential real estate loans		2,608			3,025			1,115
Consumer and other loans:
Credit cards		34,490			34,562			34,835
Other consumer and other loans		4,989			6,111			8,488
Total accruing loans past due 90 days or more		43,093			45,264			46,524
Total nonperforming loans		62,556			65,297			46,524
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	62,556		$	65,297		$	46,524
Total CCBX nonperforming assets to total consolidated assets		1.52	%		1.61	%		1.24	%

Community Bank	As of
(dollars in thousands; unaudited)	December 31, 2024		September 30, 2024			December 31, 2023
Nonaccrual loans:
Commercial and industrial loans	$	100	$	198		$	—
Real estate:
Residential real estate		—		44			170
Commercial real estate		—		831			7,145
Total nonaccrual loans		100		1,073			7,315
Accruing loans past due 90 days or more:
Total accruing loans past due 90 days or more		—		—			—
Total nonperforming loans		100		1,073			7,315
Other real estate owned		—		—			—
Repossessed assets		—		—			—
Total nonperforming assets	$	100	$	1,073		$	7,315
Total community bank nonperforming assets to total consolidated assets	< 0.01%			0.03	%		0.19	%

About Coastal Financial

Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC. The $4.12 billion Bank provides service through 14 branches in Snohomish, Island, and King Counties, the Internet and its mobile banking application. The Bank provides banking as a service to broker-dealers, digital financial service providers, companies and brands that want to provide financial services to their customers through the Bank’s CCBX segment. To learn more about the Company visit www.coastalbank.com.

CCB-ER

Contact

Eric Sprink, Chief Executive Officer, (425) 357-3659
Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed and in any of our subsequent filings with the Securities and Exchange Commission.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands; unaudited)

ASSETS
	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Cash and due from banks	$	36,533		$	45,327		$	59,995		$	32,790		$	31,345
Interest earning deposits with other banks		415,980			438,699			427,250			482,338			451,783
Investment securities, available for sale, at fair value		35			38			39			41			99,504
Investment securities, held to maturity, at amortized cost		47,286			48,582			49,174			50,049			50,860
Other investments		10,800			10,757			10,664			10,583			10,227
Loans held for sale		20,600			7,565			—			797			—
Loans receivable		3,486,565			3,418,832			3,326,460			3,199,554			3,026,092
Allowance for credit losses		(176,994	)		(170,263	)		(147,914	)		(139,258	)		(116,958	)
Total loans receivable, net		3,309,571			3,248,569			3,178,546			3,060,296			2,909,134
CCBX credit enhancement asset		181,890			167,251			143,485			137,276			107,921
CCBX receivable		14,138			16,060			11,520			10,369			9,088
Premises and equipment, net		27,431			25,833			24,526			22,995			22,090
Lease right-of-use assets		5,219			5,427			5,635			5,756			5,932
Accrued interest receivable		21,104			23,664			23,617			24,681			26,819
Bank-owned life insurance, net		13,375			13,255			13,132			12,991			12,870
Deferred tax asset, net		3,600			3,083			2,221			2,221			3,806
Other assets		13,646			11,711			11,742			12,075			11,987
Total assets	$	4,121,208		$	4,065,821		$	3,961,546		$	3,865,258		$	3,753,366

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits	$	3,585,332		$	3,627,288		$	3,543,432		$	3,462,979		$	3,360,363
Subordinated debt, net		44,293			44,256			44,219			44,181			44,144
Junior subordinated debentures, net		3,591			3,591			3,591			3,590			3,590
Deferred compensation		332			369			405			442			479
Accrued interest payable		962			1,070			999			1,061			892
Lease liabilities		5,398			5,609			5,821			5,946			6,124
CCBX payable		29,171			39,188			34,536			33,095			33,651
Other liabilities		13,425			12,520			11,850			10,255			9,145
Total liabilities		3,682,504			3,733,891			3,644,853			3,561,549			3,458,388
SHAREHOLDERS’ EQUITY
Common Stock		228,177			134,769			132,989			131,601			130,136
Retained earnings		210,529			197,162			183,706			172,110			165,311
Accumulated other comprehensive loss, net of tax		(2	)		(1	)		(2	)		(2	)		(469	)
Total shareholders’ equity		438,704			331,930			316,693			303,709			294,978
Total liabilities and shareholders’ equity	$	4,121,208		$	4,065,821		$	3,961,546		$	3,865,258		$	3,753,366

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts; unaudited)

	Three Months Ended
	December 31, 2024		September 30, 2024		June 30, 2024			March 31, 2024			December 31, 2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	89,714	$	99,590	$	90,944		$	84,621		$	81,159
Interest on interest earning deposits with other banks		6,021		4,781		5,683			4,780			5,687
Interest on investment securities		661		675		686			1,034			1,225
Dividends on other investments		191		33		174			37			172
Total interest income		96,587		105,079		97,487			90,472			88,243
INTEREST EXPENSE
Interest on deposits		29,404		32,083		30,578			28,867			27,916
Interest on borrowed funds		667		809		672			669			670
Total interest expense		30,071		32,892		31,250			29,536			28,586
Net interest income		66,516		72,187		66,237			60,936			59,657
PROVISION FOR CREDIT LOSSES		61,867		70,257		62,325			83,158			60,789
Net interest income/(expense) after provision for credit losses		4,649		1,930		3,912			(22,222	)		(1,132	)
NONINTEREST INCOME
Service charges and fees		932		952		946			908			957
Loan referral fees		—		—		—			168			—
Unrealized gain (loss) on equity securities, net		1		2		9			15			80
Other income		473		486		257			308			60
Noninterest income, excluding BaaS program income and BaaS indemnification income		1,406		1,440		1,212			1,399			1,097
Servicing and other BaaS fees		1,043		1,044		1,525			1,131			1,015
Transaction fees		1,783		1,696		1,309			1,122			1,006
Interchange fees		1,916		1,853		1,625			1,539			1,272
Reimbursement of expenses		3,468		1,843		1,637			1,033			1,076
BaaS program income		8,210		6,436		6,096			4,825			4,369
BaaS credit enhancements		62,097		70,108		60,826			79,808			58,449
BaaS fraud enhancements		5,043		2,084		1,784			923			779
BaaS indemnification income		67,140		72,192		62,610			80,731			59,228
Total noninterest income		76,756		80,068		69,918			86,955			64,694
NONINTEREST EXPENSE
Salaries and employee benefits		17,994		17,101		17,005			17,984			16,490
Occupancy		958		964		985			1,029			976
Data processing and software licenses		4,010		4,297		3,625			3,381			2,781
Legal and professional expenses		4,606		3,597		3,631			3,672			2,649
Point of sale expense		2,745		1,351		852			869			899
Excise taxes		778		762		(706	)		320			449
Federal Deposit Insurance Corporation (“FDIC”) assessments		750		740		690			683			665
Director and staff expenses		683		559		470			400			478
Marketing		28		67		14			53			138
Other expense		1,752		1,482		1,383			1,867			1,089
Noninterest expense, excluding BaaS loan and BaaS fraud expense		34,304		30,920		27,949			30,258			26,614
BaaS loan expense		24,859		32,612		29,076			24,837			24,310
BaaS fraud expense		5,043		2,084		1,784			923			779
BaaS loan and fraud expense		29,902		34,696		30,860			25,760			25,089
Total noninterest expense		64,206		65,616		58,809			56,018			51,703
Income before provision for income taxes		17,199		16,382		15,021			8,715			11,859
PROVISION FOR INCOME TAXES		3,832		2,926		3,425			1,915			2,847
NET INCOME	$	13,367	$	13,456	$	11,596		$	6,800		$	9,012
Basic earnings per common share	$	0.97	$	1.00	$	0.86		$	0.51		$	0.68
Diluted earnings per common share	$	0.94	$	0.97	$	0.84		$	0.50		$	0.66
Weighted average number of common shares outstanding:
Basic		13,828,605		13,447,066		13,412,667			13,340,997			13,286,828
Diluted		14,268,229		13,822,270		13,736,508			13,676,917			13,676,513

COASTAL FINANCIAL CORPORATION
AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	December 31, 2024							September 30, 2024							December 31, 2023
	Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾
Assets
Interest earning assets:
Interest earning deposits with other banks	$	501,654		$	6,021	4.77	%	$	350,915		$	4,781	5.42	%	$	413,127		$	5,687	5.46	%
Investment securities, available for sale ⁽²⁾		39			—	—			40			—	—			100,204			546	2.16
Investment securities, held to maturity ⁽²⁾		48,126			661	5.46			48,945			675	5.49			49,469			679	5.45
Other investments		10,783			191	7.05			11,140			33	1.18			11,683			172	5.84
Loans receivable ⁽³⁾		3,419,476			89,714	10.44			3,464,871			99,590	11.43			3,007,289			81,159	10.71
Total interest earning assets		3,980,078			96,587	9.65			3,875,911			105,079	10.79			3,581,772			88,243	9.77
Noninterest earning assets:
Allowance for credit losses		(156,687	)						(151,292	)						(95,391	)
Other noninterest earning assets		277,922							268,903							204,052
Total assets	$	4,101,313						$	3,993,522						$	3,690,433

Liabilities and Shareholders’ Equity
Interest bearing liabilities:
Interest bearing deposits	$	3,068,357		$	29,404	3.81	%	$	2,966,527		$	32,083	4.30	%	$	2,660,235		$	27,916	4.16	%
FHLB advances and other borrowings		—			1	—			9,717			140	5.73			3			—	—
Subordinated debt		44,272			599	5.38			44,234			598	5.38			44,121			598	5.38
Junior subordinated debentures		3,591			67	7.42			3,591			71	7.87			3,590			72	7.96
Total interest bearing liabilities		3,116,220			30,071	3.84			3,024,069			32,892	4.33			2,707,949			28,586	4.19
Noninterest bearing deposits		577,453							588,178							640,424
Other liabilities		50,824							60,101							52,450
Total shareholders’ equity		356,816							321,174							289,612
Total liabilities and shareholders’ equity	$	4,101,313						$	3,993,522						$	3,690,435
Net interest income				$	66,516						$	72,187						$	59,657
Interest rate spread						5.82	%						6.46	%						5.59	%
Net interest margin ⁽⁴⁾						6.65	%						7.41	%						6.61	%

⁽¹⁾Yields and costs are annualized.
⁽²⁾For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽³⁾Includes loans held for sale and nonaccrual loans.
⁽⁴⁾Net interest margin represents net interest income divided by the average total interest earning assets.

COASTAL FINANCIAL CORPORATION
SELECTED AVERAGE BALANCES, YIELDS, AND RATES – BY SEGMENT – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	December 31, 2024						September 30, 2024						December 31, 2023
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Community Bank
Assets
Interest earning assets:
Loans receivable ⁽²⁾	$	1,892,298	$	31,043	6.53	%	$	1,912,428	$	31,898	6.64	%	$	1,811,152	$	28,832	6.32	%
Total interest earning assets		1,892,298		31,043	6.53			1,912,428		31,898	6.64			1,811,152		28,832	6.32
Liabilities
Interest bearing liabilities:
Interest bearing deposits		1,029,346		7,161	2.77	%		982,280		7,264	2.94	%		951,148		6,090	2.54	%
Intrabank liability		357,442		4,290	4.77			406,641		5,540	5.42			275,995		3,799	5.46
Total interest bearing liabilities		1,386,788		11,451	3.28			1,388,921		12,804	3.67			1,227,143		9,889	3.20
Noninterest bearing deposits		505,510						523,507						584,009
Net interest income			$	19,592					$	19,094					$	18,943
Net interest margin⁽³⁾					4.12	%					3.97	%					4.15	%

CCBX
Assets
Interest earning assets:
Loans receivable ⁽²⁾⁽⁴⁾	$	1,527,178	$	58,671	15.28	%	$	1,552,443	$	67,692	17.35	%	$	1,196,137	$	52,327	17.36	%
Intrabank asset		583,776		7,007	4.78			496,475		6,764	5.42			569,365		7,837	5.46
Total interest earning assets		2,110,954		65,678	12.38			2,048,918		74,456	14.46			1,765,502		60,164	13.52
Liabilities
Interest bearing liabilities:
Interest bearing deposits		2,039,011		22,243	4.34	%		1,984,247		24,819	4.98	%		1,709,087		21,826	5.07	%
Total interest bearing liabilities		2,039,011		22,243	4.34			1,984,247		24,819	4.98			1,709,087		21,826	5.07
Noninterest bearing deposits		71,943						64,671						56,415
Net interest income			$	43,435					$	49,637					$	38,338
Net interest margin⁽³⁾					8.19	%					9.64	%					8.62	%
Net interest margin, net of Baas loan expense ⁽⁵⁾					3.50	%					3.31	%					3.15	%

	For the Three Months Ended
	December 31, 2024						September 30, 2024							December 31, 2023
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Treasury & Administration
Assets
Interest earning assets:
Interest earning deposits with other banks	$	501,654	$	6,021	4.77	%	$	350,915		$	4,781	5.42	%	$	413,127	$	5,687	5.46	%
Investment securities, available for sale ⁽⁶⁾		39		—	—			40			—	—			100,204		546	2.16
Investment securities, held to maturity ⁽⁶⁾		48,126		661	5.46			48,945			675	5.49			49,469		679	5.45
Other investments		10,783		191	7.05			11,140			33	1.18			11,683		172	5.84
Total interest earning assets		560,602		6,873	4.88	%		411,040	—		5,489	5.31	%		574,483		7,084	4.89	%
Liabilities
Interest bearing liabilities:
FHLB advances and borrowings	$	—	$	1	—	%		9,717			140	5.73	%		3		—	—	%
Subordinated debt		44,272		599	5.38	%		44,234			598	5.38	%		44,121		598	5.38	%
Junior subordinated debentures		3,591		67	7.42			3,591			71	7.87			3,590		72	7.96
Intrabank liability, net ⁽⁷⁾		226,334		2,717	4.78			89,834			1,224	5.42			293,370		4,038	5.46
Total interest bearing liabilities		274,197		3,384	4.91			147,376			2,033	5.49			341,084		4,708	5.48
Net interest income			$	3,489						$	3,456					$	2,376
Net interest margin⁽³⁾					2.48	%						3.34	%					1.64	%

(1) Yields and costs are annualized.
⁽²⁾Includes loans held for sale and nonaccrual loans.
⁽³⁾Net interest margin represents net interest income divided by the average total interest earning assets.
⁽⁴⁾CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽⁵⁾Net interest margin, net of BaaS loan expense, includes the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release.
⁽⁶⁾For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽⁷⁾Intrabank assets and liabilities are consolidated for period calculations and presented as intrabank asset, net or intrabank liability, net in the table above.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.

However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

The following non-GAAP measures are presented to illustrate the impact of BaaS loan expense on net loan income and yield on loans and CCBX loans and the impact of BaaS loan expense on net interest income and net interest margin.

Loan income, net of BaaS loan expense, divided by average loans, is a non-GAAP measure that includes the impact BaaS loan expense on loan income and the yield on loans. The most directly comparable GAAP measure is yield on loans.

Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.

Net interest income, net of BaaS loan expense, is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income.

CCBX net interest margin, net of BaaS loan expense, is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The most directly comparable GAAP measure is CCBX net interest margin.

Reconciliations of the GAAP and non-GAAP measures are presented below.

CCBX	As of and for the Three Months Ended									As of and for the Twelve Months Ended
(dollars in thousands; unaudited)	December 31 2024			September 30 2024			December 31 2023			December 31 2024			December 31 2023
Net BaaS loan income divided by average CCBX loans:
CCBX loan yield (GAAP)⁽¹⁾		15.28	%		17.35	%		17.36	%		16.89	%		16.89	%
Total average CCBX loans receivable	$	1,527,178		$	1,552,443		$	1,196,137		$	1,427,571		$	1,210,413
Interest and earned fee income on CCBX loans (GAAP)		58,671			67,692			52,327			241,134			204,458
BaaS loan expense		(24,859	)		(32,612	)		(24,310	)		(111,384	)		(86,900	)
Net BaaS loan income	$	33,812		$	35,080		$	28,017		$	129,750		$	117,558
Net BaaS loan income divided by average CCBX loans ⁽¹⁾		8.81	%		8.99	%		9.30	%		9.09	%		9.71	%
CCBX net interest margin, net of BaaS loan expense:
CCBX net interest margin ⁽¹⁾		8.19	%		9.64	%		8.62	%		8.87	%		9.65	%
CCBX earning assets		2,110,954			2,048,918			1,765,502			1,999,695			1,574,334
Net interest income (GAAP)		43,435			49,637			38,338			177,320			151,883
Less: BaaS loan expense		(24,859	)		(32,612	)		(24,310	)		(111,384	)		(86,900	)
Net interest income, net of BaaS loan expense	$	18,576		$	17,025		$	14,028		$	65,936		$	64,983
CCBX net interest margin, net of BaaS loan expense ⁽¹⁾		3.50	%		3.31	%		3.15	%		3.30	%		4.13	%

Consolidated	As of and for the Three Months Ended									As of and for the Twelve Months Ended
(dollars in thousands; unaudited)	December 31 2024			September 30 2024			December 31 2023			December 31 2024			December 31 2023
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		6.65	%		7.41	%		6.61	%		6.99	%		7.10	%
Earning assets		3,980,078			3,875,911			3,581,772			3,802,275			3,364,406
Net interest income (GAAP)		66,516			72,187			59,657			265,876			238,727
Less: BaaS loan expense		(24,859	)		(32,612	)		(24,310	)		(111,384	)		(86,900	)
Net interest income, net of BaaS loan expense	$	41,657		$	39,575		$	35,347		$	154,492		$	151,827
Net interest margin, net of BaaS loan expense ⁽¹⁾		4.16	%		4.06	%		3.92	%		4.06	%		4.51	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		10.44	%		11.43	%		10.71	%		10.99	%		10.60	%
Total average loans receivable	$	3,419,476		$	3,464,871		$	3,007,289		$	3,320,582		$	2,936,908
Interest and earned fee income on loans (GAAP)		89,714			99,590			81,159			364,869			311,441
BaaS loan expense		(24,859	)		(32,612	)		(24,310	)		(111,384	)		(86,900	)
Net loan income	$	64,855		$	66,978		$	56,849		$	253,485		$	224,541
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾		7.55	%		7.69	%		7.50	%		7.63	%		7.65	%

⁽¹⁾ Annualized calculations for periods presented.

The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) on noninterest expense. The most comparable GAAP measure is noninterest expense.

	As of and for the Three Months Ended
(dollars in thousands, unaudited)	December 31, 2024		September 30, 2024		December 31, 2023
Noninterest expense, net of reimbursement of expenses (BaaS)
Noninterest expense (GAAP)	$	64,206	$	65,616	$	51,703
Less: BaaS loan expense		24,859		32,612		24,310
Less: BaaS fraud expense		5,043		2,084		779
Less: Reimbursement of expenses		3,468		1,843		1,076
Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses	$	30,836	$	29,077	$	25,538

APPENDIX A –
As of December 31, 2024

Industry Concentration

We have a diversified loan portfolio, representing a wide variety of industries. Our major categories of loans are commercial real estate, consumer and other loans, residential real estate, commercial and industrial, and construction, land and land development loans. Together they represent $3.49 billion in outstanding loan balances. When combined with $1.96 billion in unused commitments the total of these categories is $5.46 billion.

Commercial real estate loans represent the largest segment of our loans, comprising 39.4% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $34.2 million, and the combined total in commercial real estate loans represents $1.41 billion, or 25.8% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our commercial real estate portfolio as of December 31, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Apartments	$	405,561	$	4,953	$	410,514	7.5	%	$	3,937	103
Hotel/Motel		154,691		68		154,759	2.8			6,726	23
Convenience Store		139,735		575		140,310	2.6			2,329	60
Office		122,897		7,687		130,584	2.4			1,366	90
Retail		103,312		414		103,726	1.9			993	104
Warehouse		103,130		—		103,130	1.9			1,748	59
Mixed use		91,607		5,365		96,972	1.8			1,160	79
Mini Storage		80,837		10,183		91,020	1.7			3,674	22
Strip Mall		43,894		—		43,894	0.8			6,271	7
Manufacturing		37,617		1,200		38,817	0.7			1,297	29
Groups < 0.70% of total		91,520		3,777		95,297	1.7			1,173	78
Total	$	1,374,801	$	34,222	$	1,409,023	25.8	%	$	2,102	654

Consumer loans comprise 34.6% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $735.8 million, and the combined total in consumer and other loans represents $1.94 billion, or 35.6% of our total outstanding loans and loan commitments. As illustrated in the table below, our CCBX partners bring in a large number of mostly smaller dollar loans, resulting in an average consumer loan balance of just $1,000. CCBX consumer loans are underwritten to CCBX credit standards and underwriting of these loans is regularly tested, including quarterly testing for partners with portfolio balances greater than $10.0 million.

The following table summarizes our loan commitment by industry for our consumer and other loan portfolio as of December 31, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX consumer loans
Credit cards	$	528,554	$	717,198	$	1,245,752	22.8	%	$	1.8	301,799
Installment loans		656,797		15,806		672,603	12.3			1.0	690,596
Lines of credit		722		1		723	0.0			1.4	524
Other loans		7,261		—		7,261	0.1			—	163,026
Community bank consumer loans
Installment loans		1,917		2		1,919	0.1			68.5	28
Lines of credit		181		344		525	0.0			5.7	32
Other loans		11,444		2,400		13,844	0.3			30.6	374
Total	$	1,206,876	$	735,751	$	1,942,627	35.6	%	$	1.0	1,156,379

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Residential real estate loans comprise 13.4% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $499.5 million, and the combined total in residential real estate loans represents $969.3 million, or 17.8% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our residential real estate loan portfolio as of December 31, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX residential real estate loans
Home equity line of credit	$	267,707	$	453,369	$	721,076	13.2	%	$	27	10,092
Community bank residential real estate loans
Closed end, secured by first liens		165,433		2,080		167,513	3.1			537	308
Home equity line of credit		25,506		43,102		68,608	1.3			109	234
Closed end, second liens		11,125		965		12,090	0.2			371	30
Total	$	469,771	$	499,516	$	969,287	17.8	%	$	44	10,664

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Commercial and industrial loans comprise 8.4% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $645.5 million, and the combined total in commercial and industrial loans represents $938.9 million, or 17.2% of our total outstanding loans and loan commitments. Included in commercial and industrial loans is $109.0 million in outstanding capital call lines, with an additional $550.9 million in available loan commitments which is limited to a $350.0 million portfolio maximum. Capital call lines are provided to venture capital firms through one of our CCBX BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every capital call line.

The following table summarizes our loan commitment by industry for our commercial and industrial loan portfolio as of December 31, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Consolidated C&I loans
Capital Call Lines	$	109,017	$	550,948	$	659,965	12.1	%	$	808	135
Construction/Contractor Services		24,367		36,343		60,710	1.1			121	202
Financial Institutions		48,648		—		48,648	0.9			4,054	12
Retail		28,533		5,664		34,197	0.6			14	2,052
Manufacturing		5,604		4,581		10,185	0.2			147	38
Medical / Dental / Other Care		7,074		2,641		9,715	0.2			544	13
Groups < 0.20% of total		70,130		45,360		115,490	2.1			55	1,275
Total	$	293,373	$	645,537	$	938,910	17.2	%	$	79	3,727

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Construction, land and land development loans comprise 4.2% of our total balance of outstanding loans as of December 31, 2024. Unused commitments to extend credit represents an additional $47.8 million, and the combined total in construction, land and land development loans represents $196.0 million, or 3.6% of our total outstanding loans and loan commitments.

The following table details our loan commitment for our construction, land and land development portfolio as of December 31, 2024:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Commercial construction	$	83,216	$	30,500	$	113,716	2.1	%	$	6,935	12
Residential construction		40,940		10,873		51,813	0.9			2,408	17
Developed land loans		8,305		456		8,761	0.2			489	17
Undeveloped land loans		8,665		4,816		13,481	0.2			619	14
Land development		7,072		1,157		8,229	0.2			643	11
Total	$	148,198	$	47,802	$	196,000	3.6	%	$	2,087	71

Exposure and risk in our construction, land and land development portfolio is declining compared to previous periods as indicated in the following table:

	Outstanding Balance as of
(dollars in thousands; unaudited)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023
Commercial construction	$	83,216	$	97,792	$	110,372	$	102,099	$	81,489
Residential construction		40,940		35,822		34,652		28,751		34,213
Undeveloped land loans		8,665		8,606		8,372		8,190		7,890
Developed land loans		8,305		14,863		13,954		14,307		20,515
Land development		7,072		5,968		5,714		7,515		12,993
Total	$	148,198	$	163,051	$	173,064	$	160,862	$	157,100

Commitments to extend credit total $1.96 billion at December 31, 2024, however we do not anticipate our customers using the $1.96 billion that is showing as available due to CCBX partner and portfolio limits.

The following table presents outstanding commitments to extend credit as of December 31, 2024:

Consolidated
(dollars in thousands; unaudited)	As of December 31, 2024
Commitments to extend credit:
Commercial and industrial loans	$	94,589
Commercial and industrial loans – capital call lines		550,948
Construction – commercial real estate loans		36,873
Construction – residential real estate loans		10,929
Residential real estate loans		499,516
Commercial real estate loans		34,222
Credit cards		717,198
Consumer and other loans		18,553
Total commitments to extend credit	$	1,962,828

We have individual CCBX partner portfolio limits with our each of our partners to manage loan concentration risk, liquidity risk, and counter-party partner risk. For example, as of December 31, 2024, capital call lines outstanding balance totaled $109.0 million, and while commitments totaled $550.9 million, the commitments are limited to a maximum of $350.0 million by agreement with the partner. If a CCBX partner goes over their individual limit, it would be a breach of their contract and the Bank may impose penalties and would have the choice to fund the loan.

See the table below for CCBX portfolio maximums and related available commitments:

CCBX
(dollars in thousands; unaudited)	Balance			Percent of CCBX loans receivable		Available Commitments ⁽¹⁾		Maximum Portfolio Size		Cash Reserve/Pledge Account Amount ⁽²⁾
Commercial and industrial loans:
Capital call lines	$	109,017		6.8	%	$	550,948	$	350,000	$	—
All other commercial & industrial loans		33,961		2.1			19,104		480,000		834
Real estate loans:
Home equity lines of credit ⁽³⁾		267,707		16.7			453,369		375,000		36,241
Consumer and other loans:
Credit cards – cash secured		211					—				—
Credit cards – unsecured		528,343					717,198				26,742
Credit cards – total		528,554		33.0			717,198		807,484		26,742
Installment loans – cash secured		127,014					15,806				—
Installment loans – unsecured		529,783					—				5,332
Installment loans – total		656,797		40.9			15,806		1,787,118		5,332
Other consumer and other loans		7,983		0.5			1		5,398		196
Gross CCBX loans receivable		1,604,019		100.0	%		1,756,426		3,805,000	$	69,345
Net deferred origination fees		(442	)
Loans receivable	$	1,603,577

(1) Remaining commitment available, net of outstanding balance.
(2) Balances are as of January 8, 2025.
(3) These home equity lines of credit are secured by residential real estate and are accessed by using a credit card, but are classified as 1-4 family residential properties per regulatory guidelines.

APPENDIX B –
As of December 31, 2024

CCBX – BaaS Reporting Information

During the quarter ended December 31, 2024, $62.1 million was recorded in BaaS credit enhancements related to the provision for credit losses – loans and reserve for unfunded commitments for CCBX partner loans and negative deposit accounts. Agreements with our CCBX partners provide for a credit enhancement provided by the partner which protects the Bank by indemnifying or reimbursing incurred losses. In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans, unfunded commitments and negative deposit accounts. When the provision for credit losses – loans and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements) in recognition of the CCBX partner legal commitment to indemnify or reimburse losses. The credit enhancement asset is relieved as credit enhancement payments and recoveries are received from the CCBX partner or taken from the partner’s cash reserve account. Agreements with our CCBX partners also provide protection to the Bank from fraud by indemnifying or reimbursing incurred fraud losses. BaaS fraud includes noncredit fraud losses on loans and deposits originated through partners. Fraud losses are recorded when incurred as losses in noninterest expense, and the enhancement received from the CCBX partner is recorded in noninterest income, resulting in a net impact of zero to the income statement. Many CCBX partners also pledge a cash reserve account at the Bank which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval. Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, as a result of this counterparty risk. If a CCBX partner does not replenish their cash reserve account the Bank may consider an alternative plan for funding the cash reserve. This may involve the possibility of adjusting the funding amounts or timelines to better align with the partner’s specific situation. If a mutually agreeable funding plan is not agreed to, the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements. The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to determine if a write-off is appropriate. If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurred and payments to the CCBX partner were stopped.

The Bank records contractual interest earned from the borrower on CCBX partner loans in interest income, adjusted for origination costs which are paid or payable to the CCBX partner. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relationships, the Bank takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income (A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.) which can be compared to interest income on the Company’s community bank loans.

The following table illustrates how CCBX partner loan income and expenses are recorded in the financial statements:

Loan income and related loan expense	Three Months Ended
(dollars in thousands; unaudited)	December 31, 2024			September 30, 2024			December 31, 2023
Yield on loans ⁽¹⁾		15.28	%		17.35	%		17.36	%
BaaS loan interest income	$	58,671		$	67,692		$	52,327
Less: BaaS loan expense		24,859			32,612			24,310
Net BaaS loan income ⁽²⁾	$	33,812		$	35,080		$	28,017
Net BaaS loan income divided by average BaaS loans ⁽¹⁾⁽²⁾		8.81	%		8.99	%		9.30	%

(1) Annualized calculation for quarterly periods shown.
(2) A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.

A decrease in average CCBX loans receivable resulted in decreased interest income on CCBX loans during the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024. The decrease in average CCBX loans receivable was primarily due to loan sales in the CCBX loan portfolio as part of our strategy to optimize the CCBX loan portfolio and strengthen our balance sheet through originating higher quality new loans and enhanced credit standards. These higher quality loans also have lower stated rates and expected losses. As a result, our yield on loans and our BaaS loan expense decrease by similar amounts. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and generate off balance sheet fee income. Growth in CCBX loans and deposits has resulted in increases in interest income and expense for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023.

The following tables are a summary of the interest components, direct fees, and expenses of BaaS for the periods indicated and are not inclusive of all income and expense related to BaaS.

Interest income	Three Months Ended
(dollars in thousands; unaudited)	December 31, 2024		September 30, 2024		December 31, 2023
Loan interest income	$	58,671	$	67,692	$	52,327
Total BaaS interest income	$	58,671	$	67,692	$	52,327

Interest expense	Three Months Ended
(dollars in thousands; unaudited)	December 31, 2024		September 30, 2024		December 31, 2023
BaaS interest expense	$	22,243	$	24,819	$	21,826
Total BaaS interest expense	$	22,243	$	24,819	$	21,826

BaaS income	Three Months Ended
(dollars in thousands; unaudited)	December 31, 2024		September 30, 2024		December 31, 2023
BaaS program income:
Servicing and other BaaS fees	$	1,043	$	1,044	$	1,015
Transaction fees		1,783		1,696		1,006
Interchange fees		1,916		1,853		1,272
Reimbursement of expenses		3,468		1,843		1,076
BaaS program income		8,210		6,436		4,369
BaaS indemnification income:
BaaS credit enhancements		62,097		70,108		58,449
BaaS fraud enhancements		5,043		2,084		779
BaaS indemnification income		67,140		72,192		59,228
Total noninterest BaaS income	$	75,350	$	78,628	$	63,597

Servicing and other BaaS fees decreased $1,000 in the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 while transaction fees and interchange fees increased $87,000 and $63,000, respectively. We expect servicing and other BaaS fees to decrease and transaction and interchange fees to increase as partner activity grows and contracted minimum fees are replaced with recurring fees and then exceed those minimum fees. Increases in BaaS reimbursement of fees offsets increases in noninterest expense from BaaS expenses covered by CCBX partners.

BaaS loan and fraud expense:	Three Months Ended
(dollars in thousands; unaudited)	December 31, 2024		September 30, 2024		December 31, 2023
BaaS loan expense	$	24,859	$	32,612	$	24,310
BaaS fraud expense		5,043		2,084		779
Total BaaS loan and fraud expense	$	29,902	$	34,696	$	25,089

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/20c5a089-a44b-483e-acb5-fccbbe07fc10

The MIL Network –

January 29, 2025

MIL-OSI: Golar LNG Limited – Q4 2024 results presentation

Source: GlobeNewswire (MIL-OSI)

Golar LNG’s 4^th Quarter 2024 results will be released before the NASDAQ opens on Thursday, February 27, 2025. In connection with this a webcast presentation will be held at 1:00 P.M (London Time) on Thursday February 27, 2025. The presentation will be available to download from the Investor Relations section at www.golarlng.com

We recommend that participants join the conference call via the listen-only live webcast link provided. Sell-side analysts interested in raising a question during the Q&A session that will immediately follow the presentation should access the event via the conference call by clicking on this link. We recommend connecting 10 minutes prior to the call start. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

a. Listen-only live webcast link
Go to the Investors, Results Centre section at www.golarlng.com and click on the link to “Webcast”. To listen to the conference call from the web, you need to have a sound card on your computer, but no special plug ins are required to access the webcast. There is a “Help” link available on the webcast pages for anyone who may have issues accessing.

b. Teleconference

Conference call participants should register to obtain their dial in and passcode details. This process eliminates wait times when joining the call.

When you log in, you can either dial in using the provided numbers and your unique PIN, or select the “Call me” option and type in your phone number to be instantly connected to the call. Use the following link to register.

Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

If you are not able to listen at the time of the call, you can assess a replay of the event audio for a limited time on www.golarlng.com (Investors, Results Centre).

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

The MIL Network –

January 29, 2025

MIL-OSI: WISDOMTREE MULTI ASSET ISSUER PUBLIC LIMITED COMPANY (a public company incorporated with limited liability in Ireland) WISDOMTREE NASDAQ 100® 3X DAILY SHORT SECURITIES ISIN: IE00BLRPRJ20

Source: GlobeNewswire (MIL-OSI)

28 January 2025

LSE Code: QQQS

WISDOMTREE MULTI ASSET ISSUER PUBLIC LIMITED COMPANY
(a public company incorporated with limited liability in Ireland)
WISDOMTREE NASDAQ 100® 3X DAILY SHORT SECURITIES
ISIN: IE00BLRPRJ20

RESULTS OF MEETING OF THE ETP SECURITYHOLDERS

WisdomTree Multi Asset Issuer Public Limited Company (the “Issuer”) wishes to announce that the Extraordinary Resolution regarding the reduction in the principal amount of the WisdomTree NASDAQ 100® 3x Daily Short Securities (the “Affected Securities”) from USD 1.218 to USD 0.1218, as set out in a notice to holders of the Affected Securities dated 11 December 2024, was passed at an adjourned meeting of the holders of the Affected Securities held at 11am on 28 January 2025.

As a result, the Deed of Amendment has been duly executed by the Issuer, the Manager and the Trustee to put the proposed amendments to the Trust Deed into effect from 28 January 2025.

The MIL Network –

January 29, 2025

MIL-OSI: Wintrust Financial Corporation Completes Integration with LPL Platform

Source: GlobeNewswire (MIL-OSI)

SAN DIEGO, Jan. 28, 2025 (GLOBE NEWSWIRE) — LPL Financial LLC, a subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA), today announced that Wintrust Financial Corporation (Nasdaq: WTFC) has transitioned support of the wealth management business of Wintrust Investments and certain private client business at Great Lakes Advisors (collectively “Wintrust”) to LPL Financial and its Institution Services platform.

“This strategic relationship with LPL Financial is a significant step forward for Wintrust and our mission to provide exceptional wealth management advice and superior service to our clients across the country,” said Tom Zidar, Chairman and Chief Executive Officer at Wintrust Wealth Management. “By leveraging LPL’s enhanced platform, we will deliver a more streamlined and personalized experience to our clients and a more intuitive, integrated experience for our advisors.”

“Wintrust’s advisors now have the capabilities, technology and centralized support to differentiate their service offering and grow their practices,” said Christopher Cassidy, Senior Vice President, Head of Institution Business Development at LPL. “This strategic relationship reflects the value LPL brings to help financial institutions scale their wealth management businesses and deliver personalized experiences for their clients.”

LPL and Wintrust Financial Corporation signed an agreement in February 2024. On January 25, about $15 billion of brokerage and advisory assets were onboarded to LPL. The remaining $1 billion of assets are expected to onboard over the next several months.

About Wintrust  

Wintrust is a financial holding company with approximately $64.9 billion in assets whose common stock is traded on the NASDAQ Global Select Market. Guided by its “Different Approach, Better Results^®” philosophy, Wintrust offers the sophisticated resources of a large bank while providing a community banking experience to each customer. Wintrust operates more than 200 retail banking locations through 16 community bank subsidiaries in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. In addition, Wintrust operates various non-bank business units, providing residential mortgage origination, wealth management, commercial and life insurance premium financing, short-term accounts receivable financing/outsourced administrative services to the temporary staffing services industry, and qualified intermediary services for tax-deferred exchanges.

About LPL Financial 

LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace, LPL supports more than 28,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.8 trillion in brokerage and advisory assets on behalf of 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker dealer, member FINRA/SIPC.

LPL Financial and its affiliated companies provide financial services only from the United States. LPL Financial and Wintrust are not affiliated.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Forward-Looking Statements

Certain of the statements included in this release, such as those regarding the expected onboarding of assets associated with the strategic relationship and the benefits anticipated of the relationship, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “plans,” “assumes,” “estimates,” “projects,” “intends,” “should,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are made based on current expectations and beliefs concerning future developments and their potential effects upon Wintrust, LPL or both. In particular, no assurance can be provided that the assets reported as serviced by financial advisors affiliated with Wintrust will translate into assets serviced by LPL or that the benefits that are expected to accrue to Wintrust, LPL and advisors as a result of the strategic relationship will materialize. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, including economic, legislative, regulatory, competitive and other factors, and there are certain important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements. Important factors that could cause or contribute to such differences include: difficulties or delays of LPL in transitioning advisors affiliated with Wintrust, or in onboarding Wintrust’s clients and businesses or transitioning their assets from Wintrust’s current third-party custodian to LPL; the inability of LPL to sustain revenue and earnings growth or to fully realize revenue or expense synergies or the other expected benefits of the transaction, which depend in part on LPL’s success in onboarding assets currently served by Wintrust’s advisors; disruptions to Wintrust’s or LPL’s businesses due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with financial advisors and clients, employees, other business partners or governmental entities; the inability of LPL or Wintrust to implement onboarding plans; the choice by clients of Wintrust-affiliated advisors not to open brokerage and/or advisory accounts at LPL; changes in general economic and financial market conditions, including retail investor sentiment; fluctuations in the value of assets under custody; and the effects of competition in the financial services industry, including competitors’ success in recruiting Wintrust-affiliated advisors. Certain additional important factors that could cause actual results or the timing of events to differ, possibly materially, from expectations or estimates expressed or implied in such forward-looking statements can be found in the “Risk Factors” and “Forward Looking Statements” (in the case of Wintrust) or the “Risk Factors” and “Special Note Regarding Forward-Looking Statements” (in the case of LPL) sections included in each of Wintrust’s and LPL’s most recent Annual Report on Form 10-K. Except as required by law, Wintrust and LPL do not undertake to update any particular forward-looking statement included in this document as a result of developments occurring after the date of this press release.

Contacts 

LPL Media Relations 
media.relations@lplfinancial.com 
(704) 996-1840

LPL Investor Relations 
investor.relations@lplfinancial.com 

Wintrust
David A. Dykstra
Vice Chairman & Chief Operating Officer
(847) 939-9000

Tracking: 686437

The MIL Network –

January 29, 2025

MIL-OSI: Rightworks joins Wolters Kluwer’s CCH® Marketplace

Source: GlobeNewswire (MIL-OSI)

NASHUA, N.H., Jan. 28, 2025 (GLOBE NEWSWIRE) — Rightworks, the only intelligent cloud services provider purpose-built for accounting firms and professionals, today announced it has joined Wolters Kluwer’s CCH^® Marketplace. The collaboration empowers accounting firms using Wolters Kluwer solutions to give their employees secure, remote access to all their tax apps, including CCH Axcess™, thus enabling them to work from anywhere. Additionally, using Rightworks OneSpace, Wolters Kluwer’s users can simplify firm operations, secure their data, connect with clients and scale their practice—all in one place.

“We are excited to welcome Rightworks into our CCH® Marketplace,” said Cathy Rowe, Senior Vice President and Segment Leader, US Professional Market, Wolters Kluwer Tax & Accounting North America. “Accounting firms will be able to make the most of our suite of offerings from within Rightworks’ intelligent cloud, elevating the user experience and ultimately working with their clients securely and more collaboratively.”

Rightworks OneSpace helps accounting firms resolve staffing, technology and security challenges while enabling them to leverage a simplified, fully managed cloud with quick access to every application. With this latest collaboration, accounting professionals have the flexibility to work remotely with secure web-based access to desktop and cloud apps within Wolters Kluwer’s CCH^® ProSystem fx^® and CCH Axcess™ Suite supporting modules that span audit, tax and firm management.

“Part of creating a future-forward accounting practice is ensuring firms have access to the profession’s best tools that help them, in turn, offer the superior experiences that their clients increasingly expect,” said Piyum Samaraweera, Chief Product Officer at Rightworks. “Our relationship with Wolters Kluwer gives firms access to a cloud platform that is purpose-built for the accounting profession.”

To learn more about Rightworks on CCH Marketplace, click here.

Connect with Rightworks
Visit our newsroom; read our blog; and follow us on LinkedIn, Facebook and Instagram.

About Rightworks
Rightworks enables accounting firms and businesses to significantly simplify operations and expand their value to clients via our award-winning intelligent cloud and learning resources. This is possible with Rightworks OneSpace, the only secure cloud environment purpose-built for the accounting and tax profession, and Rightworks Academy, the premier community for firm optimization, growth and professional development. The Academy offers access to thought leadership, events, peer communities and extensive learning resources. Founded in 2002, we’ve grown to serve over 10,000 accounting firms in the US—from single practitioners to Top 10 firms. For more information, please visit rightworks.com or follow us on LinkedIn, Facebook and Instagram.

The MIL Network –

January 29, 2025

MIL-OSI: Verity and Landus Announce Agreement to Track and Verify Sustainable Agriculture Attributes at Soybean Facility

Source: GlobeNewswire (MIL-OSI)

ENGLEWOOD, Colo., Jan. 28, 2025 (GLOBE NEWSWIRE) — Verity Holdings, LLC (“Verity”), a subsidiary of Gevo, Inc. (NASDAQ: GEVO), and Landus are pleased to announce a new agreement aimed at unlocking added value for farmers through sustainability premiums via export markets. This collaboration leverages Verity’s advanced platform to track and verify the attributes of agricultural products, enabling Landus to document and assign value metrics for soybeans processed at its soybean facility in Ralston, Iowa.

This farmer-centric agreement reinforces Verity and Landus’ commitment to expanding opportunities in international markets for sustainably certified products, such as those derived from regeneratively grown soybeans and corn. By streamlining the certification and data-verification process, the partnership aims to deliver measurable premiums to farmers meeting program requirements while incentivizing processors to adopt efficiency-enhancing systems that drive long-term sustainable outcomes.

“Landus and Verity will work together to capture and verify key attribute data that drives value throughout the supply chain,” said Paul Bloom, Chief Business Officer for Gevo. “As a leader in the industry, Landus recognizes the importance of collecting trustworthy, verifiable data to document agriculture attributes and connect them to finished products through the supply chain. Farmers and customers are realizing the power of collaboration across the supply chain to drive meaningful and scalable impact.”

As part of this partnership, Landus and Verity plan to expand data-verification efforts to additional Landus facilities and pilot innovative market solutions. By sharing regular progress updates, they remain committed to building trust and transparency with farmer-owners and stakeholders.

“Our focus on quality, a unique soybean supply chain, and our commitment to creating value-added opportunities for farmer-owners have always set us apart,” said Craig Mouchka, Director of Strategic Partnerships and Sustainability at Landus. “Verity equips us with the tools to maximize sustainability premiums through export markets while fulfilling our promise to deliver innovative solutions and new opportunities for our farmer-owners.”

Farmer-owners interested in participating in sustainability initiatives or learning more about market premiums can contact their local Landus representative.

“We are partnering with organizations that prioritize scalable solutions and sustainable agriculture done right,” said Bloom. “Landus and Verity are demonstrating the value of collaboration from field to finished product, ensuring that sustainability premiums benefit farmers, processors, and their customers alike—particularly in the growing export markets for differentiated agricultural goods.”

About Gevo
Gevo’s mission is to convert renewable energy and biogenic carbon into sustainable fuels and chemicals with a net zero or better carbon footprint. Gevo’s innovative technology can be used to make a variety of products, including sustainable aviation fuel (“SAF”), motor fuels, chemicals, and other materials. Gevo’s business model includes developing, financing, and operating production facilities for these renewable fuels and other products. It currently runs one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States. It also owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo emphasizes the importance of sustainability by tracking and verifying the carbon footprint of its business systems through its Verity subsidiary.
For more information, see www.gevo.com.

About Verity
Verity is at the forefront of creating the ability to track, verify, and empirically value carbon intensity across the full carbon lifecycle. Verity Holdings, LLC is a wholly owned subsidiary of Gevo, Inc. For more information, see www.veritytracking.com.

About Landus
Landus is a forward-thinking agriculture solutions company that keeps the farmer at the center of every decision it makes. The company connects thousands of farmer-owners with the world through grain, agronomy, and distribution, deploying traditional and nontraditional methods fueled by innovation and sustainability. Landus’ businesses touch 34 states and 16 countries. To learn more about Landus, and the company’s commitment to solving critical issues for the farmer of tomorrow, please visit landus.ag.

Forward Looking Statement
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, Verity’s technology and platform, the commercial benefits of using the Verity platform, and the attributes of Verity’s platform, the value of sustainability premiums and other statements that are not purely statements of historical fact. These forward-looking statements are made based on the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2023, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Media Contact
Heather Manuel
VP, Stakeholder Engagement & Partnerships
PR@gevo.com

Kaylie Tighe
Communications Manager
Kaylie.tighe@trailrunnerint.com

IR Contact
Eric Frey
VP, Finance & Strategy
IR@Gevo.com

The MIL Network –

January 29, 2025

MIL-OSI: Ushur Welcomes Deepak Vedarthan as SVP of Customer Success to Accelerate Growth in AI-Driven Solutions for Regulated Enterprises

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Ushur, the leader in Customer Experience Automation for regulated industries, is thrilled to announce the appointment of Deepak Vedarthan as Senior Vice President of Customer Success. In his new role, Deepak will oversee all post-sales customer functions, including onboarding, implementation, professional and managed services, customer success management, customer operations and customer support.

“Joining Ushur at this pivotal moment in its evolution is incredibly exciting,” said Deepak Vedarthan. “The company’s groundbreaking AI-first approach to experience automation is reshaping how enterprises engage with their customers. As we continue to push the boundaries of innovation, I am thrilled to collaborate with the talented Ushur team to build a world-class customer success organization that delivers exceptional outcomes, accelerates time to value and empowers customers to unlock new opportunities. Together, we’ll elevate customer experiences to new heights, ensuring organizations thrive in an increasingly digital world.”

Deepak joins Ushur with over 22 years of experience driving digital transformation for global enterprises. His expertise spans intelligent automation, business process management and workflow optimization. Most recently, Deepak served as Global Vice President of Professional Services at GRM and VisualVault, where he led transformative initiatives that elevated operational excellence, expanded market presence and launched the company into new verticals. Prior to that, he spent 17 years at Pegasystems, leading high-performing, cross-functional teams in delivering groundbreaking solutions to some of the world’s most iconic brands.

Deepak holds a bachelor’s degree in computer science, an MBA and executive certifications from Cornell, Harvard and Stanford, where he completed the prestigious Learn, Engage, Accelerate and Disrupt (LEAD) Executive Leadership Program as a distinguished scholar.

With a proven track record as a trusted advisor and thought leader, Deepak brings a wealth of knowledge and leadership to Ushur. His extensive experience and strategic vision will be instrumental in delivering impactful strategies and meaningful outcomes for Ushur’s customers.

“Building a world-class post-sales customer success charter is an essential prerequisite for our growth journey,” said Simha Sadasiva, Co-Founder and CEO of Ushur. “We could not have found a better leader than Deepak to help chart this next phase of our business. His deep expertise, leadership acumen and customer-centric approach make him the ideal choice to lead our customer success organization. We’re excited to have Deepak join the Ushur team and strengthen our mission of delivering exceptional value to our customers.”

About Ushur: Ushur delivers the world’s first Customer Experience Automation platform built specifically for regulated industries. Purpose-built for delivering ideal self-service, Ushur infuses intelligence into digital experiences for the most delightful and impactful customer engagements. Equipped with guardrails and compliance-ready infrastructure, Ushur powers vertical AI Agents for healthcare, financial services and insurance use cases. Designed for rapid code-less deployment with flexible, advanced capabilities for IT and business teams, enterprises can transform customer and employee journeys at scale in the fastest time to value.

Media Contact
Anthony Stipa
anthony@scribewise.com
(610) 420-1724

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/025f8557-4bcc-4cab-9e8c-ac6b5997d08e

The MIL Network –

January 29, 2025

MIL-OSI: Broadcom Delivers Industry’s First Quantum Resistant Network Encryption, Enabling Real-time Ransomware Detection

Source: GlobeNewswire (MIL-OSI)

PALO ALTO, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Broadcom Inc. (NASDAQ:AVGO) today announced an industry-first — the new, innovative Emulex Secure Fibre Channel Host Bus Adapters (HBA) — a cost-effective, easy-to-manage solution that encrypts all data as it moves between servers and storage.

Encrypting mission-critical data is no longer a nice-to-have, but a must-have. The cost of ransomware attacks continues to rise with attacks in 2024 costing USD $5.37 million¹ on average per attack. Upcoming generative AI and quantum computers magnify the risk if data is not encrypted at all points in the data center including the network.

To address these cybersecurity issues, governments have responded with mandates, including the United States’ Commercial National Security Algorithm (CNSA) 2.0, the European Union’s Network and Information Security (NIS) 2, Digital Operational Resilience Act (DORA) and more that require enterprises to modernize their IT infrastructures with post-quantum cryptographic encryption algorithms and zero trust architecture.

Today, data centers have the option of deploying application encryption or network encryption to protect their data. Network encryption offers several important advantages versus application-based encryption including preserving storage array services such as dedupe and compression, which is destroyed when using application-based encryption. Network encryption also enables real-time ransomware detection while application-based encryption hides ransomware attacks. Additional highlights of this solution include no encryption performance penalty and simple, session-based key management.

“Customers are seeking ways to protect themselves against crippling and expensive ransomware attacks as well as complying with new government regulations mandating all data be encrypted,” said Jeff Hoogenboom, vice president and general manager, Emulex Connectivity Division, Broadcom. “The Emulex Secure Host Bus Adapter meets these needs by providing an elegantly simple solution that once installed, encrypts all data across all applications.”

“As enterprises face an ever-growing wave of cybersecurity threats, the Emulex Secure HBA stands out as a simple drop-in solution that enhances SAN security without compromising performance,” said Brian Beeler, president, StorageReview.com. “In our testing, we found these HBAs excelled at securing in-flight SAN data encryption while seamlessly complementing existing security technologies. We’re excited to see these adapters become a standard layer of improved SAN security in 2025, providing enterprises with an essential tool to safeguard their critical data.”

Emulex Secure HBAs Feature:

Security Built on Zero Trust, Post-Quantum Cryptography
- Encryption algorithms support CNSA 2.0, DORA and NIS2 mandates.
- Secures data in-flight between host servers and storage arrays.
- Zero Trust platform with Security Protocol and Data Model (SPDM). cryptographic authentication of endpoints, and silicon root-of-trust authentication.
- Compliance with the NIST 800-193 framework — secure boot, digitally signed drivers, T10-DIF, and more.
Cost effective encryption: Dedupe/compression storage services remain intact; protects all data across all applications versus application-specific solutions.
Runs on existing Fibre Channel infrastructure.
Maximum application performance: Cryptography offloaded to hardware, providing encryption with no performance impact.
Easy to manage and deploy: Simple session-based key management with on-demand key generation; transparent runs with existing operating systems, applications and SAN management tools.

Emulex 32G and 64G Secure HBAs are available in 1, 2, and 4 port configurations and are shipping now. For further information please visit Broadcom.com here, and StorageReview.com here.

About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom’s category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.

Broadcom, the pulse logo, and Connecting everything are among the trademarks of Broadcom. The term “Broadcom” refers to Broadcom Inc., and/or its subsidiaries. Other trademarks are the property of their respective owners.

¹Cost of a Data Breach Report 2024, Ponemon Institute

Press Contact:
Jon Piazza
Global Communications
press.relations@broadcom.com
Telephone: +1 310 498 5254

Industry Quotes

Mark Jones, President Emeritus, Fibre Channel Industry Association (FCIA)
“A standards-based solution to network security ensures industry-wide interoperability and gives customers the assurance of a working ecosystem that has been the hallmark of the Fibre Channel industry for over 30 years. The Emulex Secure HBA is leveraging the new INCITS FC-SP-3 standard; this security protocol will ensure that Fibre Channel will continue to be the most secure choice of storage network transport far into the future.”

Dave Pearson, Vice President, Infrastructure Research, IDC
“Cybersecurity ‘defense-in-depth’ best practices for enterprises means going beyond just data-at-rest encryption, but the tradeoff has traditionally meant losing data compression and deduplication capabilities. Secure HBAs aim to solve this problem by enabling in-flight encryption with full data compression.”

The MIL Network –

January 29, 2025

MIL-OSI: The Apache Software Foundation Announces New Top-Level Projects

Source: GlobeNewswire (MIL-OSI)

Wilmington, DE, Jan. 28, 2025 (GLOBE NEWSWIRE) — The Apache Software Foundation (ASF), the all-volunteer developers, stewards, and incubators of more than 320 active open source projects and initiatives, today announced that Apache Answer™ and Apache StreamPark™ have graduated from incubation and are now Top-Level Projects (TLP).

Apache Answer is a modern, open source Q&A platform designed to help organizations build their knowledge base and community. The software enables teams and communities to collaboratively create, share, and discover knowledge in a structured and efficient way. To learn more about Answer, visit https://answer.apache.org/.

“Apache Answer’s graduation as a Top-Level Project marks a significant milestone in our journey,” said Ning Qi, Vice President of Apache Answer. “This achievement reflects the dedication of our community and the maturity of our platform in providing a Q&A platform solution for knowledge management and community engagement.”

Apache StreamPark is an easy-to-use streaming application development framework and operation platform. StreamPark supports Apache Flink® and Apache Spark™ providing full lifecycle support for stream processing applications. To learn more about StreamPark, visit https://streampark.apache.org/.

“Becoming an Apache Software Foundation Top-Level Project is a significant milestone and one that would not be possible without the dedication and hard work of the StreamPark community,” said Huajie Wang, Vice President of Apache StreamPark. “We look forward to continued technical and community growth under the ASF’s stewardship.”

Open source projects need healthy communities to thrive. The ASF provides projects with services and mentorship for building resilient and durable communities throughout their lifecycle. The Apache Incubator provides services to incoming projects (called podlings) that want to enter the ASF and adopt the Apache Way.

About The Apache Software Foundation (ASF)
Founded in 1999, the Apache Software Foundation exists to provide software for the public good with support from more than 75 sponsors. ASF’s open source software is used ubiquitously around the world with more than 8,400 committers contributing to 320+ active projects including Apache Superset, Apache Camel, Apache Flink, Apache HTTP Server, Apache Kafka, and Apache Airflow. The Foundation’s open source projects and community practices are considered industry standards, including the widely adopted Apache License 2.0, the podling incubation process, and a consensus-driven decision model that enables projects to build strong communities and thrive. https://apache.org

ASF’s annual Community Over Code event is where open source technologists convene to share best practices and use cases, forge critical relationships, and learn about advancements in their field. https://communityovercode.org/

© The Apache Software Foundation. “Apache” is a registered trademark or trademark of the Apache Software Foundation in the United States and/or other countries. All other brands and trademarks are the property of their respective owners.

Media Contact
press@apache.org

###

The MIL Network –

January 29, 2025

MIL-OSI: Anjuna Security Recognized as a Tech Innovator in Preemptive Cybersecurity by Gartner®

Source: GlobeNewswire (MIL-OSI)

PALO ALTO, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Anjuna, creator of Anjuna Seaglass, the only Universal Confidential Computing Platform, and Anjuna Northstar, the first AI Fusion Clean Room, announced today that it has been named a Tech Innovator in Preemptive Cybersecurity in the 2024 Gartner Emerging Tech: Tech Innovators in Preemptive Cybersecurity report. Anjuna views this as a recognition of its pioneering role in enabling enterprises to proactively defend against increasingly sophisticated AI-enabled cyber threats.

“We are proud about being named as a Tech Innovator by Gartner. We think this recognition underscores the growing demand for Confidential Computing in the evolving cybersecurity landscape, and reaffirms our commitment to innovating in this space.” said Ayal Yogev, CEO of Anjuna.

Cybersecurity for the AI Era
According to Gartner, “Emerging GenAI-driven threats are challenging traditional detection and response strategies. Preemptive cybersecurity technologies, like advanced deception and predictive threat intelligence, offer enriched insights that significantly enhance existing security controls and improve cyber defense capabilities.” .

Anjuna Seaglass enables organizations to embrace this approach through Confidential Computing. By enabling hardware-assisted security to protect workloads during processing, it isolates data, code, and AI models from looming threats.

Anjuna helps customers in a wide range of industries, including finserv and healthcare. A prominent finserv institution used Anjuna Seaglass to implement a data clean room, ensuring compliance while enabling secure AI-driven innovation.

Preemptive Strategies: A Must-Have for Modern Security
As AI-driven attacks grow, enterprises increasingly rely on preemptive cybersecurity. Anjuna Seaglass simplifies adoption by providing:

Proactive hardware-backed defense against emerging threats
Seamless integration with existing IT infrastructure
Scalability for enterprises of all sizes

According to Gartner, “Organizations across several industry verticals and markets such as banking and financial services, healthcare and biosciences, and critical infrastructure and government can all benefit from this new innovative flexibility in adopting confidential computing
within their business operations.”

Read the full Gartner report here

Gartner, Emerging Tech: Tech Innovators in Preemptive Cybersecurity, Luis Castillo, Isy Bangurah, 8 January 2025
GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Anjuna
Anjuna unlocks secure, AI-driven innovation with two groundbreaking solutions. Anjuna Seaglass, the Universal Confidential Computing Platform, delivers ubiquitous data privacy and intrinsic cloud security. Anjuna Northstar, the AI Data Fusion Clean Room, builds on Seaglass to provide an out-of-the-box, private environment for limitless AI-driven data collaboration and value discovery. Anjuna works with enterprises around the globe, including financial services, government, healthcare and SaaS. Anjuna is backed by prominent investors, including Playground Global, Insight Partners, M Ventures, and SineWave Ventures.

Media Contact:
Mauricio Barra, VP of Marketing for Anjuna
Email: mauricio.barra@anjuna.io

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f75b9b82-ae54-4170-b787-e2668d5f7e3f

The MIL Network –

January 29, 2025

MIL-OSI: Illumio Research Reveals 58% of Companies Hit With Ransomware Have Been Forced to Halt Operations

Source: GlobeNewswire (MIL-OSI)

SUNNYVALE, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Ransomware attacks are disrupting and undermining business operations and draining revenue streams, according to new research from the Ponemon Institute, commissioned by Illumio, Inc., the leader in breach containment.

Findings from The Global Cost of Ransomware Study reveal that 58% of organizations had to shut down operations following a ransomware attack, up from 45% in 2021. Forty percent reported a significant loss of revenue (up from 22% in 2021); 41% lost customers; and 40% had to eliminate jobs.

The research examined the scope of ransomware threats confronting organizations and the measures being implemented to reduce the risks and their impacts. Key findings include:

Attackers are reaching critical systems to cause maximum disruption: Ransomware attacks impacted 25% of critical systems, with systems down for 12 hours on average.
Organizations continue to spend significant time and money containing ransomware: On average, it took 17.5 people, 132 hours each to contain and remediate their largest ransomware attack.
Costs associated with reputation and brand damage now exceed those from legal and regulatory actions: 35% experienced significant brand damage from an attack (up from 21% in 2021).
Failure to prioritize investments that boost resilience is costing businesses: 44% lack the ability to quickly identify and contain attacks, and only 27% have implemented microsegmentation – a vital control for stopping the spread of breaches.

“Ransomware is more pervasive and impactful than ever, with more organizations forced to suspend operations or experiencing major business failure because of attacks,” said Trevor Dearing, Director of Critical Infrastructure at Illumio. “Organizations need operational resilience and controls like microsegmentation that stop attackers from reaching critical systems. By containing attacks at the point of entry, organizations can protect critical systems and data, and save millions in downtime, lost business, and reputational damage.”

Cloud and hybrid environments remain weak links, with attackers exploiting unpatched systems
The increased connectivity of business systems and devices is making it harder for organizations to defend against ransomware attacks. Organizations perceive the cloud as being the most vulnerable, and 35% say a lack of visibility across hybrid environments makes it difficult to respond to ransomware attacks.

Desktops and laptops remain the most compromised devices (50%), with phishing and Remote Desktop Protocol (RDP) cited as top entry points for ransomware. Most attacks moved across the network to infect other devices. In over half of these cases (52%), attackers exploited unpatched systems to move laterally and escalate system privileges; up significantly from 33% in 2021.

Organizations are investing heavily in ransomware defense, but efforts are falling short
According to the research, nearly a third of IT budgets (29%) are allocated to staff and technologies meant to prevent, detect, contain, and resolve ransomware attacks, yet attacks are still successful. Eighty-eight percent of organizations have fallen victim to a ransomware attack, despite 54% being confident in their security posture.

Organizations are also taking a chance on ransomware recovery and failing. Fifty-two percent of respondents believe having a full and accurate backup is a sufficient defense against ransomware. Yet only 13% were able to recover all impacted data following a ransomware attack.

The report also found larger organizational challenges in defending against ransomware including:

Ransomware reporting is still not happening: 72% of those that experienced a ransomware attack didn’t report it to law enforcement. Top reasons for not reporting include fear of publicizing the incident (39%); a payment deadline (38%); and fear of retaliation (38%).
Employees are more security conscious, but still a weak link: 40% are confident in the ability of employees to detect social engineering lures (up from 30% in 2021), however, insider negligence is the top challenge when responding to ransomware attacks.
Organizations are slow to adopt AI to combat ransomware: Only 42% have specifically adopted AI to help combat ransomware. More (51%) are concerned their organization may experience an AI-generated ransomware attack.

To learn more, download the full Global Cost of Ransomware Study here or check out the blog here.

Research Methodology
The research was conducted by Ponemon Institute on behalf of Illumio among 2,547 IT and cybersecurity practitioners in the US, UK, Germany, France, Australia and Japan. All participants have responsibility for addressing ransomware attacks within their organizations.

About Illumio 
Illumio, the most comprehensive Zero Trust solution for ransomware and breach containment, protects organizations from cyber disasters and enables operational resilience without complexity. By visualizing traffic flows and automatically setting segmentation policies, the Illumio Zero Trust Segmentation Platform reduces unnecessary lateral movement across the multi-cloud and hybrid infrastructure, protecting critical resources and preventing the spread of cyberattacks.

Contact Information
Comms-team@illumio.com

About Ponemon Institute
Ponemon Institute is dedicated to independent research and education that advances responsible information and privacy management practices within business and government. Our mission is to conduct high quality, empirical studies on critical issues affecting the management and security of sensitive information about people and organizations.

We uphold strict data confidentiality, privacy and ethical research standards. We do not collect any personally identifiable information from individuals (or company identifiable information in our business research). Furthermore, we have strict quality standards to ensure that subjects are not asked extraneous, irrelevant or improper questions.

The MIL Network –

January 29, 2025

Category: GlobeNewswire