GlobeNewswire – Page 659

MIL-OSI: FirstCash Reports Record Third Quarter Operating Results; Strength in U.S. Pawn Segment Drives Record Revenue and Earnings; Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions through American First Finance (“AFF”), today announced operating results for the three and nine month periods ended September 30, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in November 2024.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash achieved record revenue and earnings results for both the third quarter and year-to-date periods. Impressive third quarter achievements also included a fifth consecutive quarter of double-digit growth in same-store pawn receivables for the U.S. pawn segment. The LatAm pawn segment also saw continued growth in local currency pawn revenues and receivables, while AFF recorded a 14% increase in third quarter gross origination volumes driven primarily by 25% growth in new merchant locations.

“Expansion of retail pawn locations continues to be robust as well, with the opening of 16 new pawn stores in the third quarter and the combined opening and acquisition of 83 total stores during the first nine months of this year. Growth in the number of stores and earning assets, coupled with consistent shareholder returns through dividends and share repurchases, continue to be funded primarily through operating cash flows.”

This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

	Three Months Ended September 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2024		2023		2024		2023
Revenue	$	837,321	$	786,301	$	837,321	$	786,301
Net income	$	64,827	$	57,144	$	75,179	$	70,775
Diluted earnings per share	$	1.44	$	1.26	$	1.67	$	1.56
EBITDA (non-GAAP measure)	$	138,134	$	129,350	$	139,278	$	132,985
Weighted-average diluted shares		44,970		45,374		44,970		45,374

	Nine Months Ended September 30,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts	2024		2023		2024		2023
Revenue	$	2,504,703	$	2,299,662	$	2,504,703	$	2,299,662
Net income	$	175,268	$	149,712	$	207,266	$	184,028
Diluted earnings per share	$	3.88	$	3.27	$	4.58	$	4.02
EBITDA (non-GAAP measure)	$	388,372	$	348,291	$	392,752	$	350,028
Weighted-average diluted shares		45,214		45,747		45,214		45,747

Consolidated Operating Highlights

Gross revenues totaled $837 million in the third quarter, an increase of 6% on a U.S. dollar basis and 9% on a constant currency basis compared to the prior-year quarter. Year-to-date revenues totaled $2.5 billion, an increase of 9%, in both dollars and constant currency, compared to the prior-year period.
Diluted earnings per share for the third quarter increased 14% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 7% compared to the prior-year quarter. Year-to-date diluted earnings per share increased 19% over the prior-year period on a GAAP basis while adjusted diluted earnings per share increased 14% compared to the prior-year period.
Net income for the third quarter increased 13% over the prior-year quarter on a GAAP basis while adjusted net income increased 6% compared to the prior-year quarter. Year-to-date, net income totaled $175 million on a GAAP basis while adjusted net income was $207 million.
For the trailing twelve month period ended September 30, 2024:
- Revenues totaled a record $3.4 billion
- Net income totaled $245 million on a GAAP basis while adjusted net income was $300 million
- Adjusted EBITDA was $554 million
- Operating cash flows were $441 million and adjusted free cash flows were $217 million

Store Base and Platform Growth

Pawn Stores – 16 new pawn locations were added in the third quarter through acquisitions and new store openings. Year-to-date through September 30, 2024, a total of 83 pawn locations have been added:
- One U.S. store was acquired in Georgia during the third quarter. Year-to-date through September 30, 2024, a total of 29 new locations have opened or been acquired in the U.S.
- There were 15 new store openings in Latin America in the third quarter which included 11 locations in Mexico and four locations in Guatemala. Year-to-date through September 30, 2024, a total of 54 new locations have opened in Latin America.
- As of September 30, 2024, the Company had 3,025 locations, comprised of 1,201 U.S. locations and 1,824 locations in Latin America.
Retail POS Payment Solutions (AFF) Merchant Partnerships – At September 30, 2024, there were approximately 13,500 active retail and e-commerce merchant partner locations, representing a 25% increase in the number of active merchant locations compared to a year ago.

U.S. Pawn Segment Operating Results

Segment pre-tax operating income in the third quarter of 2024 was a record $98 million, an increase of $14 million, or 16%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 25% for the third quarter of 2024 which is consistent with the margin for the prior-year quarter.
Year-to-date segment pre-tax operating income increased by $48 million, or 20%, compared to the prior-year period. The pre-tax operating margin increased to 25% for the year-to-date period, as compared to the 24% margin for the prior-year period.
Pawn receivables continued to grow to record levels, increasing 12% in total at September 30, 2024 compared to the prior year. The increase in total pawn receivables was driven by a 4% increase in the weighted-average U.S. store count coupled with an impressive 10% same-store increase. The same-store increase was driven by a 7% increase in average loan size and a 3% increase in the number of loans outstanding.
Pawn loan fees increased 13% for the third quarter and 18% year-to-date, while on a same-store basis, pawn loan fee revenue increased 8% for the quarter and 11% year-to-date compared to the respective prior-year periods. The increased pawn loan fee revenue reflected both store growth and continued growth in demand for pawn loans.
Retail merchandise sales increased 15% in the third quarter of 2024 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
Retail sales margins were 43% for the third quarter, improving sequentially over the second quarter and in-line with the prior-year margins. Year-to-date margins were 42% compared to 43% in the prior-year period.
Annualized inventory turnover was 2.8 times for the trailing twelve months ended September 30, 2024, which equaled the prior-year annualized inventory turnover. Inventories aged greater than one year at September 30, 2024 remained low at 2% of total inventories.
Operating expenses for the third quarter increased 12% in total due to the 4% weighted-average store count growth over the past year and increased same-store expenses of 6% compared to the prior-year period.

Latin America Pawn Segment Operating Results

Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the third quarter of 2024 was 18.9 pesos / dollar, an unfavorable change of 11% versus the comparable prior-year period, and for the nine month period ended September 30, 2024 was 17.7 pesos / dollar, a favorable change of 1% versus the prior-year period.

Third quarter segment pre-tax operating income totaled $38 million, a 6% decline on a U.S. dollar-basis compared to the prior year due primarily to an 11% decline in the Mexican peso exchange rate. On a constant currency basis, segment income increased 2% for the quarter. The resulting pre-tax operating margin was 19% compared to 20% in the prior-year quarter.
Year-to-date segment pre-tax operating income totaled $107 million, a 4% decline on a U.S. dollar-basis compared to the prior-year period due primarily to increased labor costs and store expansion expenses as described further below. The year-to-date pre-tax operating margin was 18% compared to 19% in the prior-year period.
While total and same-store pawn loan fees in the third quarter decreased 4% on a U.S. dollar-basis, they increased 6% on a constant currency basis compared to the prior-year quarter. Year-to-date pawn loan fees increased 7%, or 6% on a constant currency basis, compared to the prior-year period. Same-store pawn loan fees were up 6%, both in total and on a constant currency basis, compared to the prior year-to-date period.
While total and same-store receivables at September 30, 2024 were down 4% on a U.S. dollar basis, they increased 6% on a constant currency basis compared to the prior year.
Both total and same-store retail merchandise sales in the third quarter of 2024 decreased 3% on a U.S. dollar basis, but increased 7% on a constant currency basis compared to the prior-year quarter. Year-to-date retail merchandise sales increased 4% in total and on a constant currency basis while same-store retail merchandise sales increased 4%, or 3% on a constant currency basis.
Retail margins were 35% for the third quarter of 2024 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended September 30, 2024 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at September 30, 2024 remained extremely low at 1%.
Operating expenses decreased 1% in total and 2% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts, accelerated store opening activity and higher labor costs (due primarily to further increases in the federal minimum wage and other mandated benefit programs), along with other inflationary impacts.

American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

Third quarter segment pre-tax operating income totaled $30 million compared to $39 million in the prior-year quarter, as a significant $35 million dollar increase in gross transaction origination volume over the same quarter last year drove an increase in up-front lifetime lease and loan loss provisioning of approximately $10 million.
Year-to-date segment pre-tax operating income totaled $89 million, a 1% increase over the prior-year period which was also generally consistent with year-to-date gross origination activity.
Segment revenues for the quarter, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, were flat compared to the prior-year quarter while increasing 4% year-to-date.
Gross transaction volume of lease and loan originations during the third quarter increased $35 million, or 14%, compared to last year, driven primarily by the 25% increase in active merchant door counts and continued growth in non-furniture verticals. Excluding furniture, third quarter origination volume increased approximately 35%. For the year-to-date period, overall gross transaction volume increased 5% over the same prior-year period and was up 23% excluding furniture.
Combined gross leased merchandise and finance receivables outstanding at September 30, 2024 increased 1% compared to the September 30, 2023 balances.
The combined lease and loan loss provision as a percentage of the total gross transaction volume originated was 28% for the third quarter of 2024, compared to the 29% provisioning rate in the third quarter of 2023. The resulting allowance on combined leased merchandise and finance receivables at September 30, 2024 was 44% of gross leased merchandise and receivables, which was consistent with the prior year.
The average monthly net charge-off (“NCO”) rate for combined leased merchandise and finance receivable products was 5.8% for the third quarter of 2024 and 5.2% for the year-to-date period. While slightly above the prior year, charge-offs remain within the range of forecast expectations.
Operating expenses were flat compared to the prior-year quarter and the year-to-date period, which was reflective of continued realization of operating synergies.

Cash Flow and Liquidity

Each of the Company’s business segments generated significant operating cash flows during the twelve month period ended September 30, 2024. Consolidated operating cash flows for the twelve month period ended September 30, 2024 totaled $441 million and adjusted free cash flows (a non-GAAP measure) were $217 million.
The operating cash flows helped fund significant growth in earning assets and continued investments in the store platform over the past twelve months with a nominal increase in net debt:
- A total of 36 pawn stores were acquired for a combined purchase price of $82 million.
- 64 new, or de novo, pawn stores were added with a combined investment of $20 million in fixed assets and working capital.
- Investments in real estate totaled $78 million as the Company purchased the underlying real estate at 63 of its existing pawn stores, bringing the number of owned properties to over 380 locations.
In August 2024, the Company amended its U.S. revolving commercial bank credit facility to increase the total lender commitment from $640 million to $700 million with two new banks added to the commercial bank lending group. The term of the facility was extended through August 8, 2029. In addition, the permitted consolidated leverage ratio was increased to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged.
Over $1.5 billion of the Company’s long-term financing remains fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032.
Based on trailing twelve month results, the net debt to adjusted EBITDA ratio was 2.96x at September 30, 2024.

Shareholder Returns

The Board of Directors declared a $0.38 per share fourth quarter cash dividend, which will be paid on November 27, 2024 to stockholders of record as of November 15, 2024. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
Year-to-date, the Company has repurchased $85 million of common stock. The Company has $115 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
The Company generated a 12% return on equity and a 6% return on assets for the twelve months ended September 30, 2024. Using adjusted net income for the twelve months ended September 30, 2024, the adjusted return on equity was 15% while the adjusted return on assets was 7%.

2024 Outlook

The outlook for the remainder of 2024 continues to be highly positive, with expected year-over-year growth in consolidated revenue and earnings driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the fourth quarter include the following:

Pawn Operations:

Pawn operations are expected to remain the primary earnings driver in 2024 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
The company is targeting the addition of approximately 90 total pawn locations for 2024 through a combination of new store openings and acquisitions.

U.S. Pawn

Pawn receivables were up 12% at September 30, 2024 compared to a year ago, with October balances to date up similarly. Resulting pawn fees are expected to increase in the range of 10% to 12%.
Retail sales growth is expected to remain in-line with the inventory growth of 10% at the most recent quarter end while retail margins are projected to remain consistent with the year-to-date results.

Latin America Pawn

Latin America results in the fourth quarter are expected to be negatively impacted by the lower exchange rate for the Mexican peso which has recently been in a range of 19 to 20 pesos per U.S. dollar.
Pawn loan growth to-date in October is up approximately 8% on a constant currency basis, although down 2% on a U.S. dollar basis as compared to the prior year assuming the current exchange rate. A similar result is projected for constant currency fourth quarter pawn fees.
Retail sales in Latin America are also expected to increase in-line with inventory growth of 9% on a constant currency basis and are expected to be roughly flat to the prior year on a U.S. dollar basis, assuming the current exchange rate, with consistent retail margins.

Retail POS Payment Solutions (AFF) Operations:

While weakness in the macro furniture retail environment continues to negatively impact performance from many of its merchant retail partners in the furniture retail vertical, year-over-year growth in gross transaction volumes is still projected for the full year and fourth quarter of 2024, driven by increasing active merchant doors and further expansion of non-furniture verticals. Resulting full year gross revenues for 2024 are expected to remain at or above the prior-year level. AFF now expects furniture to account for less than 40% of 2024 originations compared to almost 50% in 2023.
The origination and revenue outlook takes into consideration the previously announced bankruptcy filing of Conn’s Home Plus which now assumes minimal originations from November 2024 forward from this merchant relationship.
Anticipated provision rates (combined provision for lease and loan losses as a percentage of the total gross transaction volume originated) are expected to range between 25% and 28% in the fourth quarter of the year.

Interest Expense, Tax Rates and Currency:

Interest expense for the fourth quarter is expected to be consistent with the prior year.
The full year 2024 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
Each full point change in the exchange rate of the Mexican peso represents an annual earnings impact of approximately $0.10 per share.

Additional Commentary and Analysis

Mr. Wessel provided additional insights on the Company’s third quarter results and outlook for the remainder of 2024, “Our results continue to demonstrate strong fundamental product demand trends which we expect to drive future revenue and earnings growth.

“The U.S. pawn segment again saw continued record levels of demand for pawn loans and record per store loan balances. The 10% growth in same-store pawn receivables is especially strong given that the comparative prior-year comp was 11%. On a stacked, two-year basis, same-store pawn loans are up 21% compared to the third quarter of 2022, illustrating tremendous, continued momentum in the business. Demand trends in October remain strong and we believe lending volumes should continue to also benefit from increased gold prices while our inventories are well positioned for the holiday sales season.

“In Latin America, currency adjusted pawn receivables and pawn fees continued to show impressive growth in the third quarter, with further acceleration to date in October, while third quarter retail sales grew even faster. While the volatility of the Mexican peso slightly impacted third quarter earnings results by approximately $0.04 per share, there is minimal impact on cash flows as we continue to reinvest a large portion of our cash flows in Latin America. We believe in the long term opportunity for Latin America, driven by near-shore manufacturing expansion and the use of pawn loans being an integral part of the economy for our customer base.

“Unit growth in both pawn segments remains exceptional. We have now added 83 stores this year and a total of 240 stores since the beginning of 2023. Looking ahead, we continue to see and evaluate expansion opportunities across markets in both the U.S. and Latin America.

“AFF’s gross transaction volumes in the third quarter improved both sequentially and year-over-year (even when excluding Conn’s Home Plus third quarter closeout volume) with significant contributions from both new doors and expanding non-furniture verticals driven largely by robust productivity from our field sales channel. Excluding furniture, third quarter origination volume increased approximately 35%. This growth has led to a further decrease in large merchant concentration risk, with the largest merchant partner now representing approximately 12% of current total gross transaction volume. Additionally, combined lease and loan losses remain well within our target metrics while the combined reserve remains consistent at over 40% of the total portfolio.

“All of FirstCash’s business segments continue to generate strong cash flows while its balance sheet remains highly liquid. Over 60% of pawn loans are collateralized with jewelry, which is primarily gold and very liquid, while almost 50% of retail inventories are comprised of jewelry that typically has the highest margins. Our balance sheet maintains favorable unsecured financing featuring long-dated maturities at attractive rates. Accordingly, we believe that we are well positioned to drive continued shareholder value through organic store growth, strategic acquisitions, dividends and share repurchases,” concluded Mr. Wessel.

About FirstCash

FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2024. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and higher gas prices, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail POS payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

FIRSTCASH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Revenue:
Retail merchandise sales	$	363,141		$	335,081		$	1,093,425		$	983,860
Pawn loan fees		186,561			174,560			547,142			480,298
Leased merchandise income		188,560			189,382			588,801			562,625
Interest and fees on finance receivables		61,198			61,413			175,384			174,247
Wholesale scrap jewelry sales		37,861			25,865			99,951			98,632
Total revenue		837,321			786,301			2,504,703			2,299,662

Cost of revenue:
Cost of retail merchandise sold		218,178			199,719			659,854			590,991
Depreciation of leased merchandise		104,928			103,698			335,369			307,824
Provision for lease losses		39,171			39,736			129,834			141,674
Provision for loan losses		40,557			33,096			102,091			90,571
Cost of wholesale scrap jewelry sold		29,880			21,405			81,711			79,012
Total cost of revenue		432,714			397,654			1,308,859			1,210,072

Net revenue		404,607			388,647			1,195,844			1,089,590

Expenses and other income:
Operating expenses		224,926			211,524			674,431			615,366
Administrative expenses		40,930			45,056			129,563			124,428
Depreciation and amortization		25,933			27,365			78,507			81,526
Interest expense		27,424			24,689			78,029			66,657
Interest income		(403	)		(328	)		(1,407	)		(1,253	)
Loss (gain) on foreign exchange		882			(286	)		2,133			(1,905	)
Merger and acquisition expenses		225			3,387			2,186			3,670
Other expenses (income), net		(490	)		(384	)		(841	)		(260	)
Total expenses and other income		319,427			311,023			962,601			888,229

Income before income taxes		85,180			77,624			233,243			201,361

Provision for income taxes		20,353			20,480			57,975			51,649

Net income	$	64,827		$	57,144		$	175,268		$	149,712

FIRSTCASH HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	September 30,						December 31,
	2024			2023			2023
ASSETS
Cash and cash equivalents	$	106,320		$	86,547		$	127,018
Accounts receivable, net		74,378			72,336			71,922
Pawn loans		517,877			483,785			471,846
Finance receivables, net		123,751			113,307			113,901
Inventories		334,394			314,382			312,089
Leased merchandise, net		137,769			143,169			171,191
Prepaid expenses and other current assets		34,861			21,114			38,634
Total current assets		1,329,350			1,234,640			1,306,601

Property and equipment, net		689,075			604,673			632,724
Operating lease right of use asset		329,228			312,097			328,458
Goodwill		1,788,795			1,713,354			1,727,652
Intangible assets, net		241,389			291,690			277,724
Other assets		10,339			10,057			10,242
Deferred tax assets, net		4,671			8,052			6,514
Total assets	$	4,392,847		$	4,174,563		$	4,289,915

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	133,792		$	146,873		$	163,050
Customer deposits and prepayments		78,083			71,752			70,580
Lease liability, current		96,598			98,745			101,962
Total current liabilities		308,473			317,370			335,592

Revolving unsecured credit facilities		200,000			560,229			568,000
Senior unsecured notes		1,530,604			1,037,151			1,037,647
Deferred tax liabilities, net		127,425			139,713			136,773
Lease liability, non-current		227,151			202,516			215,485
Total liabilities		2,393,653			2,256,979			2,293,497

Stockholders’ equity:
Common stock		575			573			573
Additional paid-in capital		1,764,351			1,737,497			1,741,046
Retained earnings		1,344,542			1,164,228			1,218,029
Accumulated other comprehensive loss		(114,807	)		(64,521	)		(43,037	)
Common stock held in treasury, at cost		(995,467	)		(920,193	)		(920,193	)
Total stockholders’ equity		1,999,194			1,917,584			1,996,418
Total liabilities and stockholders’ equity	$	4,392,847		$	4,174,563		$	4,289,915

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS
(UNAUDITED)

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Three Months Ended
	September 30,
	2024			2023			Increase
Revenue:
Retail merchandise sales	$	235,037		$	203,769			15	%
Pawn loan fees		128,393			114,022			13	%
Wholesale scrap jewelry sales		26,685			17,140			56	%
Total revenue		390,115			334,931			16	%

Cost of revenue:
Cost of retail merchandise sold		134,966			115,670			17	%
Cost of wholesale scrap jewelry sold		21,393			14,297			50	%
Total cost of revenue		156,359			129,967			20	%

Net revenue		233,756			204,964			14	%

Segment expenses:
Operating expenses		128,104			113,976			12	%
Depreciation and amortization		7,365			6,586			12	%
Total segment expenses		135,469			120,562			12	%

Segment pre-tax operating income	$	98,287		$	84,402			16	%

Operating metrics:
Retail merchandise sales margin	43		%	43		%
Net revenue margin	60		%	61		%
Segment pre-tax operating margin	25		%	25		%

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,
	2024			2023			Increase
Revenue:
Retail merchandise sales	$	702,120		$	610,493			15	%
Pawn loan fees		371,699			315,679			18	%
Wholesale scrap jewelry sales		70,722			61,108			16	%
Total revenue		1,144,541			987,280			16	%

Cost of revenue:
Cost of retail merchandise sold		407,329			349,138			17	%
Cost of wholesale scrap jewelry sold		57,928			49,604			17	%
Total cost of revenue		465,257			398,742			17	%

Net revenue		679,284			588,538			15	%

Segment expenses:
Operating expenses		372,191			331,916			12	%
Depreciation and amortization		21,609			18,786			15	%
Total segment expenses		393,800			350,702			12	%

Segment pre-tax operating income	$	285,484		$	237,836			20	%

Operating metrics:
Retail merchandise sales margin	42		%	43		%
Net revenue margin	59		%	60		%
Segment pre-tax operating margin	25		%	24		%

FIRSTCASH HOLDINGS, INC.
U.S. PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

	As of September 30,
	2024			2023			Increase
Earning assets:
Pawn loans	$	380,962		$	341,123			12	%
Inventories		238,668			217,406			10	%
	$	619,630		$	558,529			11	%

Average outstanding pawn loan amount (in ones)	$	264		$	245			8	%

Composition of pawn collateral:
General merchandise	30		%	31		%
Jewelry	70		%	69		%
	100		%	100		%

Composition of inventories:
General merchandise	43		%	45		%
Jewelry	57		%	55		%
	100		%	100		%

Percentage of inventory aged greater than one year	2		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	2.8 times			2.8 times

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS
(UNAUDITED)

Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.

Latin America Pawn Operating Results and Margins (dollars in thousands)

													Constant Currency Basis
													Three Months
													Ended
		Three Months Ended											September 30,			Increase /
		September 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	129,081			$	132,784			(3	)%		$	142,147			7	%
Pawn loan fees			58,168				60,538			(4	)%			64,130			6	%
Wholesale scrap jewelry sales			11,176				8,725			28	%			11,176			28	%
Total revenue			198,425				202,047			(2	)%			217,453			8	%

Cost of revenue:
Cost of retail merchandise sold			83,729				84,816			(1	)%			92,131			9	%
Cost of wholesale scrap jewelry sold			8,487				7,108			19	%			9,378			32	%
Total cost of revenue			92,216				91,924			—	%			101,509			10	%

Net revenue			106,209				110,123			(4	)%			115,944			5	%

Segment expenses:
Operating expenses			63,062				63,907			(1	)%			69,199			8	%
Depreciation and amortization			4,676				5,236			(11	)%			5,117			(2	)%
Total segment expenses			67,738				69,143			(2	)%			74,316			7	%

Segment pre-tax operating income		$	38,471			$	40,980			(6	)%		$	41,628			2	%

Operating metrics:
Retail merchandise sales margin	35			%	36			%				35			%
Net revenue margin	54			%	55			%				53			%
Segment pre-tax operating margin	19			%	20			%				19			%

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

													Constant Currency Basis
													Nine Months
													Ended
		Nine Months Ended											September 30,			Increase /
		September 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	394,375			$	378,302			4	%		$	391,606			4	%
Pawn loan fees			175,443				164,619			7	%			174,228			6	%
Wholesale scrap jewelry sales			29,229				37,524			(22	)%			29,229			(22	)%
Total revenue			599,047				580,445			3	%			595,063			3	%

Cost of revenue:
Cost of retail merchandise sold			254,188				244,439			4	%			252,377			3	%
Cost of wholesale scrap jewelry sold			23,783				29,408			(19	)%			23,627			(20	)%
Total cost of revenue			277,971				273,847			2	%			276,004			1	%

Net revenue			321,076				306,598			5	%			319,059			4	%

Segment expenses:
Operating expenses			198,389				179,170			11	%			196,986			10	%
Depreciation and amortization			15,199				15,884			(4	)%			15,072			(5	)%
Total segment expenses			213,588				195,054			10	%			212,058			9	%

Segment pre-tax operating income		$	107,488			$	111,544			(4	)%		$	107,001			(4	)%

Operating metrics:
Retail merchandise sales margin	36			%	35			%				36			%
Net revenue margin	54			%	53			%				54			%
Segment pre-tax operating margin	18			%	19			%				18			%

FIRSTCASH HOLDINGS, INC.
LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

										Constant Currency Basis
										As of
										September 30,
	As of September 30,									2024		Increase
	2024			2023			(Decrease)			(Non-GAAP)		(Non-GAAP)
Earning assets:
Pawn loans	$	136,915		$	142,662			(4	)%	$	151,486		6	%
Inventories		95,726			96,976			(1	)%		105,792		9	%
	$	232,641		$	239,638			(3	)%	$	257,278		7	%

Average outstanding pawn loan amount (in ones)	$	85		$	89			(4	)%	$	94		6	%

Composition of pawn collateral:
General merchandise	62		%	66		%
Jewelry	38		%	34		%
	100		%	100		%

Composition of inventories:
General merchandise	70		%	68		%
Jewelry	30		%	32		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.2 times			4.3 times

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS
(UNAUDITED)

Retail POS Payment Solutions Operating Results (dollars in thousands)

	Three Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Revenue:
Leased merchandise income	$	188,560	$	189,382		—	%
Interest and fees on finance receivables		61,198		61,413		—	%
Total revenue		249,758		250,795		—	%

Cost of revenue:
Depreciation of leased merchandise		105,308		104,198		1	%
Provision for lease losses		39,268		39,640		(1	)%
Provision for loan losses		40,557		33,096		23	%
Total cost of revenue		185,133		176,934		5	%

Net revenue		64,625		73,861		(13	)%

Segment expenses:
Operating expenses		33,760		33,641		—	%
Depreciation and amortization		679		771		(12	)%
Total segment expenses		34,439		34,412		—	%

Segment pre-tax operating income	$	30,186	$	39,449		(23	)%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Revenue:
Leased merchandise income	$	588,801	$	562,625		5	%
Interest and fees on finance receivables		175,384		174,247		1	%
Total revenue		764,185		736,872		4	%

Cost of revenue:
Depreciation of leased merchandise		336,649		309,432		9	%
Provision for lease losses		130,272		141,854		(8	)%
Provision for loan losses		102,091		90,571		13	%
Total cost of revenue		569,012		541,857		5	%

Net revenue		195,173		195,015		—	%

Segment expenses:
Operating expenses		103,851		104,280		—	%
Depreciation and amortization		2,078		2,258		(8	)%
Total segment expenses		105,929		106,538		(1	)%

Segment pre-tax operating income	$	89,244	$	88,477		1	%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)

	Three Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Leased merchandise	$	143,146	$	147,513		(3	)%
Finance receivables		142,910		103,183		39	%
Total gross transaction volume	$	286,056	$	250,696		14	%


	Nine Months Ended
	September 30,				Increase /
	2024		2023		(Decrease)
Leased merchandise	$	444,045	$	452,792		(2	)%
Finance receivables		350,332		303,485		15	%
Total gross transaction volume	$	794,377	$	756,277		5	%

Retail POS Payment Solutions Earning Assets (dollars in thousands)

	As of September 30,						Increase /
	2024			2023			(Decrease)
Leased merchandise, net:
Leased merchandise, before allowance for lease losses	$	231,796		$	250,298			(7	)%
Less allowance for lease losses		(93,823	)		(105,472	)		(11	)%
Leased merchandise, net	$	137,973		$	144,826			(5	)%

Finance receivables, net:
Finance receivables, before allowance for loan losses	$	232,948		$	209,991			11	%
Less allowance for loan losses		(109,197	)		(96,684	)		13	%
Finance receivables, net	$	123,751		$	113,307			9	%

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)

	Three Months Ended
	September 30,								Increase /
		2024				2023			(Decrease)
Allowance for lease losses:
Balance at beginning of period		$	103,301			$	110,964			(7	)%
Provision for lease losses			39,268				39,640			(1	)%
Charge-offs			(50,394	)			(46,794	)		8	%
Recoveries			1,648				1,662			(1	)%
Balance at end of period		$	93,823			$	105,472			(11	)%

Leased merchandise portfolio metrics:
Provision rate⁽¹⁾	27			%	27			%
Average monthly net charge-off rate⁽²⁾	6.8			%	5.9			%
Delinquency rate⁽³⁾	23.6			%	23.2			%

Allowance for loan losses:
Balance at beginning of period		$	99,961			$	93,054			7	%
Provision for loan losses			40,557				33,096			23	%
Charge-offs			(32,969	)			(30,890	)		7	%
Recoveries			1,648				1,424			16	%
Balance at end of period		$	109,197			$	96,684			13	%

Finance receivables portfolio metrics:
Provision rate⁽¹⁾	28			%	32			%
Average monthly net charge-off rate⁽²⁾	4.8			%	4.7			%
Delinquency rate⁽³⁾	19.4			%	21.9			%

⁽¹⁾Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
⁽²⁾Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
⁽³⁾Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

FIRSTCASH HOLDINGS, INC.
RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

	Nine Months Ended
	September 30,								Increase /
		2024				2023			(Decrease)
Allowance for lease losses:
Balance at beginning of period		$	95,752			$	79,576			20	%
Provision for lease losses			130,272				141,854			(8	)%
Charge-offs			(137,516	)			(120,966	)		14	%
Recoveries			5,315				5,008			6	%
Balance at end of period		$	93,823			$	105,472			(11	)%

Leased merchandise portfolio metrics:
Provision rate⁽¹⁾	29			%	31			%
Average monthly net charge-off rate⁽²⁾	5.9			%	5.3			%
Delinquency rate⁽³⁾	23.6			%	23.2			%

Allowance for loan losses:
Balance at beginning of period		$	96,454			$	84,833			14	%
Provision for loan losses			102,091				90,571			13	%
Charge-offs			(95,061	)			(83,281	)		14	%
Recoveries			5,713				4,561			25	%
Balance at end of period		$	109,197			$	96,684			13	%

Finance receivables portfolio metrics:
Provision rate⁽¹⁾	29			%	30			%
Average monthly net charge-off rate⁽²⁾	4.5			%	4.4			%
Delinquency rate⁽³⁾	19.4			%	21.9			%

⁽¹⁾Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
⁽²⁾Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
⁽³⁾Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

FIRSTCASH HOLDINGS, INC.
PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS

Pawn Operations

As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:

	Three Months Ended September 30, 2024
	U.S.		Latin America		Total
Total locations, beginning of period	1,201		1,817		3,018
New locations opened⁽¹⁾	—		15		15
Locations acquired	1		—		1
Consolidation of existing pawn locations⁽²⁾	(1	)	(8	)	(9	)
Total locations, end of period	1,201		1,824		3,025


	Nine Months Ended September 30, 2024
	U.S.		Latin America		Total
Total locations, beginning of period	1,183		1,814		2,997
New locations opened⁽¹⁾	1		54		55
Locations acquired	28		—		28
Consolidation of existing pawn locations^{(2) (3)}	(11	)	(44	)	(55	)
Total locations, end of period	1,201		1,824		3,025

⁽¹⁾In addition to new store openings, the Company strategically relocated three stores in the U.S. and one store in Latin America during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company strategically relocated nine stores in the U.S and one store in Latin America.
⁽²⁾Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
⁽³⁾Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023 which the Company elected to consolidate with other stores in this market. The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

Retail POS Payment Solutions

As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(UNAUDITED)

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (i) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (ii) to improve comparability of current periods presented with prior periods.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
	In Thousands			In Thousands			In Thousands			In Thousands			In Thousands			In Thousands
Net income, as reported	$	64,827		$	57,144		$	175,268		$	149,712		$	244,857		$	229,778
Adjustments, net of tax:
Merger and acquisition expenses		171			2,605			1,675			2,818			4,946			4,379
Non-cash foreign currency loss (gain) related to lease liability		986			442			2,124			(1,171	)		1,517			(1,856	)
AFF purchase accounting and other adjustments		9,572			10,880			28,717			32,869			50,189			50,529
Gain on revaluation of contingent acquisition consideration		—			—			—			—			—			(21,952	)
Other expenses (income), net		(377	)		(296	)		(518	)		(200	)		(1,397	)		(208	)
Adjusted net income	$	75,179		$	70,775		$	207,266		$	184,028		$	300,112		$	260,670

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
	Per Share			Per Share			Per Share			Per Share
Diluted earnings per share, as reported	$	1.44		$	1.26		$	3.88		$	3.27
Adjustments, net of tax:
Merger and acquisition expenses		0.01			0.06			0.04			0.06
Non-cash foreign currency loss (gain) related to lease liability		0.02			0.01			0.05			(0.03	)
AFF purchase accounting and other adjustments		0.21			0.24			0.63			0.72
Other expenses (income), net		(0.01	)		(0.01	)		(0.02	)		—
Adjusted diluted earnings per share	$	1.67		$	1.56		$	4.58		$	4.02

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
Net income	$	64,827		$	57,144		$	175,268		$	149,712		$	244,857		$	229,778
Income taxes		20,353			20,480			57,975			51,649			79,874			73,189
Depreciation and amortization		25,933			27,365			78,507			81,526			106,142			107,863
Interest expense		27,424			24,689			78,029			66,657			104,615			86,616
Interest income		(403	)		(328	)		(1,407	)		(1,253	)		(1,623	)		(1,462	)
EBITDA		138,134			129,350			388,372			348,291			533,865			495,984
Adjustments:
Merger and acquisition expenses		225			3,387			2,186			3,670			6,438			5,697
Non-cash foreign currency loss (gain) related to lease liability		1,409			632			3,035			(1,673	)		2,168			(2,652	)
AFF purchase accounting and other adjustments⁽¹⁾		—			—			—			—			13,968			8,760
Gain on revaluation of contingent acquisition consideration		—			—			—			—			—			(26,760	)
Other expenses (income), net		(490	)		(384	)		(841	)		(260	)		(1,983	)		(270	)
Adjusted EBITDA	$	139,278		$	132,985		$	392,752		$	350,028		$	554,456		$	480,759

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

⁽¹⁾The following table details AFF purchase accounting and other adjustments for the trailing twelve months ended September 30, 2024 and 2023 (in thousands):

	Trailing Twelve
	Months Ended
	September 30,
	2024		2023
Amortization of fair value adjustment on acquired finance receivables included in interest and fees on finance receivables	$	—	$	7,859
Amortization of fair value adjustment on acquired leased merchandise included in depreciation of leased merchandise		—		901
Other non-recurring costs included in administrative expenses related to a discontinued finance product		13,968		—
	$	13,968	$	8,760

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Free Cash Flow and Adjusted Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

													Trailing Twelve
	Three Months Ended						Nine Months Ended						Months Ended
	September 30,						September 30,						September 30,
	2024			2023			2024			2023			2024			2023
Cash flow from operating activities	$	113,090		$	111,368		$	341,809		$	317,037		$	440,914		$	460,544
Cash flow from certain investing activities:
Pawn loans, net⁽¹⁾		(48,836	)		(59,614	)		(69,723	)		(59,426	)		(45,275	)		(20,536	)
Finance receivables, net		(48,623	)		(30,869	)		(86,186	)		(87,994	)		(113,634	)		(123,713	)
Purchases of furniture, fixtures, equipment and improvements		(13,368	)		(18,375	)		(56,032	)		(46,723	)		(69,457	)		(52,679	)
Free cash flow		2,263			2,510			129,868			122,894			212,548			263,616
Merger and acquisition expenses paid, net of tax benefit		171			2,605			1,675			2,818			4,946			4,379
Adjusted free cash flow	$	2,434		$	5,115		$	131,543		$	125,712		$	217,494		$	267,995

⁽¹⁾Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Return on Equity and Adjusted Return on Assets

Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

	Trailing Twelve
	Months Ended
	September 30, 2024
Adjusted net income⁽¹⁾	$	300,112

Average stockholders’ equity (average of five most recent quarter-end balances)	$	1,987,405
Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)	15		%

Average total assets (average of five most recent quarter-end balances)	$	4,285,437
Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)	7		%

⁽¹⁾See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.

Constant Currency Results

The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso

	September 30,		Favorable /
	2024	2023	(Unfavorable)
Mexican peso / U.S. dollar exchange rate:
End-of-period	19.6	17.6		(11	)%
Three months ended	18.9	17.1		(11	)%
Nine months ended	17.7	17.8		1	%

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period	7.7	7.9		3	%
Three months ended	7.7	7.9		3	%
Nine months ended	7.8	7.8		—	%

Colombian peso / U.S. dollar exchange rate:
End-of-period	4,164	4,054		(3	)%
Three months ended	4,095	4,048		(1	)%
Nine months ended	3,979	4,413		10	%

FIRSTCASH HOLDINGS, INC.
INTERSEGMENT TRANSACTIONS
(UNAUDITED)

Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. For the three months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

U.S. pawn retail merchandise sales includes $1.0 million and $1.5 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $234.1 million and $202.3 million, respectively.
U.S. pawn cost of retail merchandise sold includes $0.5 million and $0.8 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $134.4 million and $114.9 million, respectively.
Retail POS payment solutions depreciation of leased merchandise includes $0.4 million and $0.5 million respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $104.9 million and $103.7 million, respectively.
Retail POS payment solutions provision for lease losses includes an increase of $0.1 million and a provision reduction of $0.1 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $39.2 million and $39.7 million, respectively.

For the nine months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

U.S. pawn retail merchandise sales includes $3.1 million and $4.9 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $699.1 million and $605.6 million, respectively.
U.S. pawn cost of retail merchandise sold includes $1.7 million and $2.6 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $405.7 million and $346.6 million, respectively.
Retail POS payment solutions depreciation of leased merchandise includes $1.3 million and $1.6 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $335.4 million and $307.8 million, respectively.
Retail POS payment solutions provision for lease losses includes $0.4 million and $0.2 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $129.8 million and $141.7 million, respectively.

As of September 30, 2024 and 2023, these intersegment amounts are as follows:

Retail POS payment solutions leased merchandise, net includes $0.2 million and $1.7 million, respectively. Excluding these intersegment transactions, consolidated net leased merchandise totaled $137.8 million and $143.2 million, respectively.

The MIL Network –

January 25, 2025

MIL-OSI: Amalgamated Financial Corp. Reports Record Third Quarter 2024 Financial Results; Margin Expands to 3.51%; Return on Average Assets of 1.32%

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the third quarter ended September 30, 2024.

Third Quarter 2024 Highlights (on a linked quarter basis)

Net income of $27.9 million, or $0.90 per diluted share, compared to $26.8 million, or $0.87 per diluted share.
Core net income¹ of $28.0 million, or $0.91 per diluted share, compared to $26.2 million, or $0.85 per diluted share.

Deposits and Liquidity

Total deposits increased $145.6 million, or 2.0%, to $7.6 billion including a $51.3 million decline in Brokered CDs.
Excluding Brokered CDs, on-balance sheet deposits increased $196.9 million, or 2.7%, to $7.5 billion.
Political deposits increased $231.9 million, or 13%, to $2.0 billion, which includes both on and off-balance sheet deposits.
Off-balance sheet deposits increased $114.1 million, or 11%, to $1.2 billion, comprised of both transactional political deposits and other segment deposits.
Average cost of deposits, excluding Brokered CDs, increased 3 basis points to 151 basis points, where non-interest-bearing deposits comprised 51% of total deposits excluding Brokered CDs.

Assets and Margin

Net loans receivable increased $78.0 million, or 1.8%, to $4.5 billion.
Excluding a $40.9 million package of low yielding residential loans marked-to-market and moved to held-for-sale, net loans receivable increased $118.9 million or 2.7%.
Total PACE assessments grew $10.6 million, or 0.9%, to $1.2 billion.
Net interest income grew $2.9 million, or 4.2%, to $72.1 million.
Net interest margin increased 5 basis points to 3.51%.

Capital and Returns

Tier 1 leverage ratio of 8.63%, increased by 21 basis points, and Common Equity Tier 1 ratio of 13.82%.
Tangible common equity¹ ratio of 8.14%, representing an eighth consecutive quarter of improvement.
Tangible book value per share¹ increased $1.69, or 8.2%, to $22.29, and has increased $4.87, or 27.9% since September 2023.
Strong core return on average tangible common equity¹ of 17.04% and core return on average assets¹ of 1.33%.

________________________
_{¹ Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on our website, www.amalgamatedbank.com.}

Priscilla Sims Brown, President and Chief Executive Officer, commented, “Our third quarter financial results continue to demonstrate that Amalgamated remains positioned to achieve sustainable earnings and profitability. During the quarter, we delivered outstanding deposit and loan growth, strong profitability and returns, and a growing capital base that positions us to invest in our strategic initiatives which will sustain our growth into the future.”

Third Quarter Earnings

Net income for the third quarter of 2024 was $27.9 million, or $0.90 per diluted share, compared to $26.8 million, or $0.87 per diluted share, for the second quarter of 2024. The $1.1 million increase during the quarter was primarily driven by a $3.2 million increase in non-core ICS One-Way Sell fee income from our off-balance sheet deposits, a $2.9 million increase in net interest income, a $1.3 million decrease in provision for credit losses, and a $0.7 million increase in non-core income from solar tax equity investments, which was expected. This was offset by a $4.3 million reduction in fair value on a pool of lower yielding residential loans moved to held for sale, a $1.5 million increase in non-interest expense, and a $1.3 million increase in income tax expense, and a $0.5 million increase in losses on securities sales.

Core net income¹ for the third quarter of 2024 was $28.0 million, or $0.91 per diluted share, compared to $26.2 million, or $0.85 per diluted share, for the second quarter of 2024. Excluded from core net income for the quarter, pre-tax, was $8.1 million of ICS One-Way Sell fee income, a $4.3 million reduction in fair value of held for sale residential loans, $3.2 million of losses on the sale of securities, $1.1 million of accelerated depreciation from solar tax equity investments, $0.7 million of gains on subordinated debt repurchases, and $0.2 million in severance costs. Excluded from core net income for the second quarter of 2024, pre-tax, was $4.9 million of ICS One-Way Sell fee income, $2.7 million of losses on the sale of securities, $1.8 million of accelerated depreciation from our solar tax equity investments, $0.4 million of gains on subordinated debt repurchases.

Net interest income was $72.1 million for the third quarter of 2024, compared to $69.2 million for the second quarter of 2024. Loan interest income increased $2.8 million and loan yields increased 11 basis points mainly as a result of a $86.7 million increase in average loan balances. Adjusted for two discrete items; the effect of $2.1 million of accelerated amortization related to purchase premiums last quarter and the recognition in the current quarter of a $1.3 million acceleration of deferred costs on certain loans, loan interest income increased by $2.1 million in the quarter. Interest income on securities increased $1.7 million driven by an increase in the average balance of securities of $79.7 million. Interest expense on total interest-bearing deposits increased $1.2 million driven by a 26 basis point increase in cost despite a decrease in the average balance of total interest-bearing deposits of $235.6 million. The increase in deposit cost was primarily related to adjustments to rates on money market products and select non-time deposit accounts late in second quarter and early in the current quarter. The decrease in the average balance of interest-bearing deposits was primarily driven by a mix shift as newly raised political deposits were mainly non-interest-bearing whereas related outflows were mainly interest-bearing. Additionally, the average balance on Brokered CD’s declined $25.0 million as certain long-term issuances were called. The average balance of borrowings also decreased $32.6 million, now substantially consisting of lower-cost subordinated debt.

Net interest margin was 3.51% for the third quarter of 2024, an increase of 5 basis points from 3.46% in the second quarter of 2024. As noted above, there were two discrete items that affected the third quarter and second quarter margin. Excluding these discrete items, net interest margin improved 2 basis points from the prior quarter, all else equal. Prepayment penalties had no impact on our net interest margin in the third quarter of 2024, which is the same as in the prior quarter.

Provision for credit losses totaled an expense of $1.8 million for the third quarter of 2024 compared to an expense of $3.2 million in the second quarter of 2024. The expense in the third quarter was primarily driven by charge-offs on our consumer solar and small business portfolios, and updates to CECL model assumptions, offset by decreases in reserves for unfunded loan commitments.

Non-interest income was $8.9 million for the third quarter of 2024, compared to $9.3 million in the second quarter of 2024. Excluding all non-core income adjustments noted above, core non-interest income¹ was $8.8 million for the third quarter of 2024, compared to $8.5 million in the second quarter of 2024. The increase was primarily related to higher commercial banking fees, increased fees from our treasury investment services, and modestly higher income from our trust business.

Non-interest expense for the third quarter of 2024 was $41.0 million, an increase of $1.5 million from the second quarter of 2024. Core non-interest expense¹ for the third quarter of 2024 was $40.7 million, an increase of $1.3 million from the second quarter of 2024. This was mainly driven by a $0.7 million increase in compensation and employee benefits expense due to strategic new hires and corporate performance accruals, as well as higher data processing expense related to the advance of digital initiatives scheduled for 2025.

Our provision for income tax expense was $10.3 million for the third quarter of 2024, compared to $9.0 million for the second quarter of 2024. The effective tax rate for the third quarter of 2024 was 26.9%. In the prior quarter, there were $0.5 million of discrete tax benefits resulting in an effective tax rate of 25.2%, or 26.6% excluding the discrete items.

Balance Sheet Quarterly Summary

Total assets were $8.4 billion at September 30, 2024, compared to $8.3 billion at June 30, 2024, which modestly grew the balance sheet above its target range but also carried $40.9 million in loans held for sale related to the residential loan sale that settled shortly after the quarter closed. Notable changes within individual balance sheet line items include a $91.2 million increase in cash and cash equivalents, a $24.1 million increase in securities, and a $78.0 million increase in net loans receivable. Additionally, deposits excluding Brokered CDs increased by $196.9 million while Brokered CDs decreased $51.3 million, and borrowings decreased by $8.8 million. Our off-balance sheet deposits increased by $114.1 million, or 11%, to $1.2 billion.

Total net loans receivable, at September 30, 2024 were $4.5 billion, an increase of $78.0 million, or 1.8% for the quarter. The increase in loans is primarily driven by a $60.8 million increase in multifamily loans, a $46.0 million increase in commercial and industrial loans, and a $37.6 million increase in commercial real estate loans, offset by an $11.1 million decrease in consumer solar loans, and a $54.3 million decrease in residential loans, primarily due to the noted loan pool sale. During the quarter, criticized or classified loans decreased $5.9 million, largely related to a $6.9 million note sale (with a related fully reserved $4.5 million charge-off) on a legacy non-accrual leveraged loan. Additionally, payoffs of two delinquent commercial and industrial loans totaling $1.7 million and charge-offs of smaller commercial and industrial loans totaling $1.0 million were offset by the downgrade of one $3.2 million multifamily loan to substandard and accruing and downgrades of small business loans totaling $1.1 million.

Total deposits at September 30, 2024 were $7.6 billion, an increase of $145.6 million, or 2.0%, during the quarter. Total deposits excluding Brokered CDs increased by $196.9 million to $7.5 billion, or a 2.7% increase. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $2.0 billion as of September 30, 2024, an increase of $231.9 million during this quarter. Non-interest-bearing deposits represented 50% of average total deposits and 51% of ending total deposits for the quarter, excluding Brokered CDs, contributing to an average cost of total deposits of 158 basis points. Super-core deposits² totaled approximately $4.5 billion, had a weighted average life of 16 years, and comprised 60% of total deposits, excluding Brokered CDs. Total uninsured deposits were $4.5 billion, comprising 59% of total deposits.

Nonperforming assets totaled $28.6 million, or 0.34% of period-end total assets at September 30, 2024, a decrease of $7.1 million, compared with $35.7 million, or 0.43% on a linked quarter basis. The decrease in nonperforming assets was primarily driven by the note sale mentioned above, a $0.2 million decrease in residential real estate nonaccrual loans, a $0.2 million decrease in consumer and consumer solar nonaccrual loans, offset by a $0.3 million increase in commercial and industrial nonaccrual loans.

During the quarter, the allowance for credit losses on loans decreased $1.9 million to $61.5 million. The ratio of allowance to total loans was 1.35%, a decrease of 7 basis points from 1.42% in the second quarter of 2024. The decrease was primarily the result of a release of reserves from the previously noted legacy leveraged commercial and industrial note sale, which carried a reserve of $4.5 million.

________________________
_{² Refer to Terminology on page 6 for definitions of certain terms used in this release.}

Capital Quarterly Summary

As of September 30, 2024, the Common Equity Tier 1 Capital ratio was 13.82%, the Total Risk-Based Capital ratio was 16.25%, and the Tier 1 Leverage Capital ratio was 8.63%, compared to 13.48%, 16.04% and 8.42%, respectively, as of June 30, 2024. Stockholders’ equity at September 30, 2024 was $698.3 million, an increase of $52.2 million during the quarter. The increase in stockholders’ equity was primarily driven by $27.9 million of net income for the quarter and a $26.9 million improvement in accumulated other comprehensive loss due to the tax effected mark-to-market on our available for sale securities portfolio, offset by $3.7 million in dividends paid at $0.12 per outstanding share.

Tangible book value per share was $22.29 as of September 30, 2024 compared to $20.61 as of June 30, 2024. Tangible common equity¹ improved to 8.14% of tangible assets, compared to 7.66% as of June 30, 2024.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its third quarter 2024 results today, October 24, 2024 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. Third Quarter 2024 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13748697. The telephonic replay will be available until October 31, 2024.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of our website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

The presentation materials for the call can be accessed on the investor relations section of our website at https://ir.amalgamatedbank.com/.

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of September 30, 2024, our total assets were $8.4 billion, total net loans were $4.5 billion, and total deposits were $7.6 billion. Additionally, as of September 30, 2024, our trust business held $35.4 billion in assets under custody and $14.6 billion in assets under management.

Non-GAAP Financial Measures

This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

Our management utilizes this information to compare our operating performance for September 30, 2024 versus certain periods in 2024 and 2023 and to prepare internal projections. We believe these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of our operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to our core business, which are excluded, vary extensively from company to company, we believe that the presentation of this information allows investors to more easily compare our results to those of other companies.

The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. We strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on our website, amalgamatedbank.com.

Terminology

Certain terms used in this release are defined as follows:

“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” We believe the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

“Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. We believe the most directly comparable GAAP financial measure is net income.

“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, restructuring/severance, and acquisitions. We believe the most directly comparable GAAP financial measure is total non-interest expense.

“Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. We believe the most directly comparable GAAP financial measure is non-interest income.

“Core operating revenue” is defined as total net interest income plus “core non-interest income”. We believe the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core return on average assets” is defined as “Core net income” divided by average total assets. We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” We believe the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. We believe the most directly comparable GAAP financial measure is total deposits.

“Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. We believe the most directly comparable GAAP financial measure is total assets.

“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, preferred stock, goodwill and core deposit intangibles. We believe that the most directly comparable GAAP financial measure is total stockholders’ equity.

“Traditional securities portfolio” is defined as total investment securities excluding PACE assessments. We believe the most directly comparable GAAP financial measure is total investment securities.

Forward-Looking Statements

Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not statements of historical or current fact nor are they assurances of future performance and generally can be identified by the use of forward-looking terminology, such as “may,” “approximately,” “will,” “anticipate,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “possible,” and “intend,” or the negative thereof as well as other similar words and expressions of the future. Forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict as to timing, extent, likelihood and degree of occurrence, which could cause our actual results to differ materially from those anticipated in or by such statements. Potential risks and uncertainties include, but are not limited to, the following: (i) uncertain conditions in the banking industry and in national, regional and local economies in our core markets, which may have an adverse impact on our business, operations and financial performance; (ii) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (iii) deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors; (iv) changes in our deposits, including an increase in uninsured deposits; (v) our ability to maintain sufficient liquidity to meet our deposit and debt obligations as they come due, which may require that we sell investment securities at a loss, negatively impacting our net income, earnings and capital; (vi) unfavorable conditions in the capital markets, which may cause declines in our stock price and the value of our investments; (vii) negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of our borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense; (viii) fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits; (ix) the general decline in the real estate and lending markets, particularly in commercial real estate in our market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing; (x) changes in legislation, regulation, public policies, or administrative practices impacting the banking industry, including increased minimum capital requirements and other regulation in the aftermath of recent bank failures; (xi) the outcome of any legal proceedings that may be instituted against us (xii) our inability to achieve organic loan and deposit growth and the composition of that growth; (xiii) the composition of our loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which we operate; (xiv) inaccuracy of the assumptions and estimates we make and policies that we implement in establishing our allowance for credit losses; (xv) changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments; (xvi) any matter that would cause us to conclude that there was impairment of any asset, including intangible assets; (xvii) limitations on our ability to declare and pay dividends; (xviii) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on our results, including as a result of compression to net interest margin; (xix) increased competition for experienced members of the workforce including executives in the banking industry; (xx) a failure in or breach of our operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xxi) increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence; (xxii) downgrade in our credit rating; (xxiii) “greenwashing claims” against us and our Environmental, Social and Governance (“ESG”) products and increased scrutiny and political opposition to ESG and Diversity, Equity and Inclusion (“DEI”) practices; (xxiv) any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters)affecting the markets in which we operate; (xxv) physical and transitional risks related to climate change as they impact our business and the businesses that we finance; (xxvi) future repurchase of our shares through our common stock repurchase program; and (xxvii) descriptions of assumptions underlying or relating to any of the foregoing. Additional factors which could affect the forward-looking statements can be found in our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC’s website at https://www.sec.gov/. We disclaim any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Jamie Lillis
Solebury Strategic Communications
shareholderrelations@amalgamatedbank.com
800-895-4172

Consolidated Statements of Income (unaudited)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands)		2024			2024			2023			2024			2023
INTEREST AND DIVIDEND INCOME
Loans	$	54,110		$	51,293		$	49,578		$	157,355		$	139,744
Securities		46,432			44,978			39,971			133,801			118,989
Interest-bearing deposits in banks		2,274			2,690			1,687			7,556			3,360
Total interest and dividend income		102,816			98,961			91,236			298,712			262,093
INTEREST EXPENSE
Deposits		30,105			28,882			23,158			84,879			55,809
Borrowed funds		604			887			4,350			4,497			12,292
Total interest expense		30,709			29,769			27,508			89,376			68,101
NET INTEREST INCOME		72,107			69,192			63,728			209,336			193,992
Provision for credit losses		1,849			3,161			2,014			6,598			10,913
Net interest income after provision for credit losses		70,258			66,031			61,714			202,738			183,079
NON-INTEREST INCOME
Trust Department fees		3,704			3,657			3,678			11,215			11,613
Service charges on deposit accounts		12,091			8,614			2,731			26,841			7,897
Bank-owned life insurance income		613			615			727			1,837			2,054
Losses on sale of securities		(3,230	)		(2,691	)		(1,699	)		(8,695	)		(5,052	)
Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net		(4,223	)		69			26			(4,107	)		30
Equity method investments income (loss)		(823	)		(1,551	)		550			(301	)		1,261
Other income		807			545			767			1,636			2,127
Total non-interest income		8,939			9,258			6,780			28,426			19,930
NON-INTEREST EXPENSE
Compensation and employee benefits		23,757			23,045			21,345			69,075			64,525
Occupancy and depreciation		3,423			3,379			3,349			9,705			10,184
Professional fees		2,575			2,332			2,222			7,284			7,211
Data processing		5,087			4,786			4,545			14,503			13,176
Office maintenance and depreciation		651			580			685			1,894			2,130
Amortization of intangible assets		183			182			222			548			666
Advertising and promotion		1,023			1,175			816			3,417			3,431
Federal deposit insurance premiums		900			1,050			1,200			3,000			3,018
Other expense		3,365			2,983			2,955			9,203			9,154
Total non-interest expense		40,964			39,512			37,339			118,629			113,495
Income before income taxes		38,233			35,777			31,155			112,535			89,514
Income tax expense		10,291			9,024			8,847			30,591			24,230
Net income	$	27,942		$	26,753		$	22,308		$	81,944		$	65,284
Earnings per common share – basic	$	0.91		$	0.88		$	0.73		$	2.68		$	2.13
Earnings per common share – diluted	$	0.90		$	0.87		$	0.73		$	2.65		$	2.12

Consolidated Statements of Financial Condition

($ in thousands)	September 30, 2024			June 30, 2024			December 31, 2023
Assets	(unaudited)			(unaudited)
Cash and due from banks	$	3,946		$	4,081		$	2,856
Interest-bearing deposits in banks		145,261			53,912			87,714
Total cash and cash equivalents		149,207			57,993			90,570
Securities:
Available for sale, at fair value
Traditional securities		1,617,045			1,581,338			1,429,739
Property Assessed Clean Energy (“PACE”) assessments		149,500			112,923			53,303
		1,766,545			1,694,261			1,483,042
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $51, $53, and $54, respectively		583,788			606,013			620,232
PACE assessments, net of allowance for credit losses of $641, $655, and $667, respectively		1,028,588			1,054,569			1,076,602
		1,612,376			1,660,582			1,696,834

Loans held for sale		38,623			1,926			1,817
Loans receivable, net of deferred loan origination costs		4,547,903			4,471,839			4,411,319
Allowance for credit losses		(61,466	)		(63,444	)		(65,691	)
Loans receivable, net		4,486,437			4,408,395			4,345,628

Resell agreements		74,883			137,461			50,000
Federal Home Loan Bank of New York (“FHLBNY”) stock, at cost		4,625			4,823			4,389
Accrued interest receivable		54,268			52,575			55,484
Premises and equipment, net		6,413			6,599			7,807
Bank-owned life insurance		107,365			106,752			105,528
Right-of-use lease asset		16,125			17,971			21,074
Deferred tax asset, net		38,510			47,654			56,603
Goodwill		12,936			12,936			12,936
Intangible assets, net		1,669			1,852			2,217
Equity method investments		11,514			12,710			13,024
Other assets		32,144			26,214			25,371
Total assets	$	8,413,640		$	8,250,704		$	7,972,324
Liabilities
Deposits	$	7,594,564		$	7,448,988		$	7,011,988
Borrowings		68,436			77,252			304,927
Operating leases		22,292			24,784			30,646
Other liabilities		30,016			53,568			39,399
Total liabilities		7,715,308			7,604,592			7,386,960
Stockholders’ equity
Common stock, par value $.01 per share		308			307			307
Additional paid-in capital		287,167			286,021			288,232
Retained earnings		459,398			435,202			388,033
Accumulated other comprehensive loss, net of income taxes		(46,702	)		(73,579	)		(86,004	)
Treasury stock, at cost		(1,972	)		(1,972	)		(5,337	)
Total Amalgamated Financial Corp. stockholders’ equity		698,199			645,979			585,231
Noncontrolling interests		133			133			133
Total stockholders’ equity		698,332			646,112			585,364
Total liabilities and stockholders’ equity	$	8,413,640		$	8,250,704		$	7,972,324

Select Financial Data

	As of and for the						As of and for the
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(Shares in thousands)		2024		2024		2023		2024		2023
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.91	$	0.88	$	0.73	$	2.68	$	2.13
Diluted		0.90		0.87		0.73		2.65		2.12
Core net income (non-GAAP)
Basic	$	0.91	$	0.86	$	0.76	$	2.61	$	2.23
Diluted		0.91		0.85		0.76		2.59		2.22
Book value per common share (excluding minority interest)	$	22.77	$	21.09	$	17.93	$	22.77	$	17.93
Tangible book value per share (non-GAAP)	$	22.29	$	20.61	$	17.43	$	22.29	$	17.43
Common shares outstanding, par value $.01 per share⁽¹⁾		30,663		30,630		30,459		30,663		30,459
Weighted average common shares outstanding, basic		30,646		30,551		30,481		30,558		30,601
Weighted average common shares outstanding, diluted		30,911		30,832		30,590		30,868		30,738

(1) 70,000,000 shares authorized; 30,776,163, 30,743,666, and 30,736,141 shares issued for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023 respectively, and 30,662,883, 30,630,386, and 30,458,781 shares outstanding for the periods ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.

Select Financial Data

	As of and for the						As of and for the
	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Selected Performance Metrics:
Return on average assets	1.32	%	1.30	%	1.12	%	1.33	%	1.11	%
Core return on average assets (non-GAAP)	1.33	%	1.27	%	1.17	%	1.29	%	1.17	%
Return on average equity	16.63	%	17.27	%	16.43	%	17.35	%	16.69	%
Core return on average tangible common equity (non-GAAP)	17.04	%	17.34	%	17.67	%	17.31	%	18.02	%
Average equity to average assets	7.96	%	7.53	%	6.82	%	7.65	%	6.67	%
Tangible common equity to tangible assets (non-GAAP)	8.14	%	7.66	%	6.72	%	8.14	%	6.72	%
Loan yield	4.79	%	4.68	%	4.56	%	4.74	%	4.43	%
Securities yield	5.25	%	5.22	%	4.94	%	5.23	%	4.84	%
Deposit cost	1.58	%	1.55	%	1.33	%	1.53	%	1.08	%
Net interest margin	3.51	%	3.46	%	3.29	%	3.48	%	3.40	%
Efficiency ratio ⁽¹⁾	50.54	%	50.37	%	52.96	%	49.89	%	53.05	%
Core efficiency ratio (non-GAAP)	50.35	%	50.80	%	51.71	%	50.52	%	51.88	%

Asset Quality Ratios:
Nonaccrual loans to total loans	0.61	%	0.78	%	0.79	%	0.61	%	0.79	%
Nonperforming assets to total assets	0.34	%	0.43	%	0.46	%	0.34	%	0.46	%
Allowance for credit losses on loans to nonaccrual loans	222.30	%	182.83	%	197.58	%	222.30	%	197.58	%
Allowance for credit losses on loans to total loans	1.35	%	1.42	%	1.56	%	1.35	%	1.56	%
Annualized net charge-offs to average loans	0.61	%	0.25	%	0.27	%	0.35	%	0.27	%

Capital Ratios:
Tier 1 leverage capital ratio	8.63	%	8.42	%	7.89	%	8.63	%	7.89	%
Tier 1 risk-based capital ratio	13.82	%	13.48	%	12.63	%	13.82	%	12.63	%
Total risk-based capital ratio	16.25	%	16.04	%	15.28	%	16.25	%	15.28	%
Common equity tier 1 capital ratio	13.82	%	13.48	%	12.63	%	13.82	%	12.63	%

(1) Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income

Loan and PACE Assessments Portfolio Composition

(In thousands)	At September 30, 2024					At June 30, 2024					At September 30, 2023
	Amount			% of total		Amount			% of total		Amount			% of total
Commercial portfolio:
Commercial and industrial	$	1,058,376		23.3	%	$	1,012,400		22.6	%	$	1,050,355		24.1	%
Multifamily		1,291,380		28.4	%		1,230,545		27.5	%		1,094,955		25.1	%
Commercial real estate		415,077		9.1	%		377,484		8.4	%		324,139		7.4	%
Construction and land development		22,224		0.5	%		23,254		0.5	%		28,326		0.6	%
Total commercial portfolio		2,787,057		61.3	%		2,643,683		59.0	%		2,497,775		57.2	%

Retail portfolio:

Residential real estate lending		1,350,347		29.7	%		1,404,624		31.4	%		1,409,530		32.3	%
Consumer solar		374,499		8.2	%		385,567		8.6	%		415,324		9.5	%
Consumer and other		36,000		0.8	%		37,965		1.0	%		42,116		1.0	%
Total retail portfolio		1,760,846		38.7	%		1,828,156		41.0	%		1,866,970		42.8	%
Total loans held for investment		4,547,903		100.0	%		4,471,839		100.0	%		4,364,745		100.0	%

Allowance for credit losses		(61,466	)				(63,444	)				(67,815	)
Loans receivable, net	$	4,486,437				$	4,408,395				$	4,296,930

PACE assessments:
Available for sale, at fair value
Residential PACE assessments		149,500		12.7	%		112,923		9.7	%		38,526		3.5	%

Held-to-maturity, at amortized cost
Commercial PACE assessments		256,128		21.7	%		256,663		22.0	%		270,020		24.3	%
Residential PACE assessments		773,101		65.6	%		798,561		68.4	%		800,484		72.2	%
Total Held-to-maturity PACE assessments		1,029,229		87.3	%		1,055,224		90.4	%		1,070,504		96.5	%
Total PACE assessments		1,178,729		100.0	%		1,168,147		100.0	%		1,109,030		100.0	%

Allowance for credit losses		(641	)				(655	)				(670	)
Total PACE assessments, net	$	1,178,088				$	1,167,492				$	1,108,360


Loans receivable, net and total PACE assessments, net as a % of Deposits		74.6	%				74.9	%				77.3	%
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs		75.6	%				76.4	%				81.9	%

Net Interest Income Analysis

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
(In thousands)	Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	182,981		$	2,274	4.94	%	$	213,725		$	2,690	5.06	%	$	170,830		$	1,687	3.92	%
Securities⁽¹⁾		3,388,580			44,678	5.25	%		3,308,881			42,937	5.22	%		3,208,334			39,971	4.94	%
Resell agreements		104,933			1,754	6.65	%		122,618			2,041	6.69	%		—			—	0.00	%
Loans receivable, net ⁽²⁾		4,493,520			54,110	4.79	%		4,406,843			51,293	4.68	%		4,314,767			49,578	4.56	%
Total interest-earning assets		8,170,014			102,816	5.01	%		8,052,067			98,961	4.94	%		7,693,931			91,236	4.70	%
Non-interest-earning assets:
Cash and due from banks		6,144							6,371							6,129
Other assets		217,332							217,578							204,506
Total assets	$	8,393,490						$	8,276,016						$	7,904,566

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	3,506,499		$	26,168	2.97	%	$	3,729,858		$	24,992	2.69	%	$	3,446,027		$	17,157	1.98	%
Time deposits		223,337			2,148	3.83	%		210,565			1,898	3.63	%		176,171			1,122	2.53	%
Brokered CDs		131,103			1,789	5.43	%		156,086			1,992	5.13	%		371,329			4,879	5.21	%
Total interest-bearing deposits		3,860,939			30,105	3.10	%		4,096,509			28,882	2.84	%		3,993,527			23,158	2.30	%
Borrowings		71,948			604	3.34	%		104,560			887	3.41	%		376,585			4,350	4.58	%
Total interest-bearing liabilities		3,932,887			30,709	3.11	%		4,201,069			29,769	2.85	%		4,370,112			27,508	2.50	%
Non-interest-bearing liabilities:
Demand and transaction deposits		3,721,398							3,390,941							2,920,737
Other liabilities		70,804							60,982							74,964
Total liabilities		7,725,089							7,652,992							7,365,813
Stockholders’ equity		668,401							623,024							538,753
Total liabilities and stockholders’ equity	$	8,393,490						$	8,276,016						$	7,904,566

Net interest income / interest rate spread				$	72,107	1.90	%				$	69,192	2.09	%				$	63,728	2.20	%
Net interest-earning assets / net interest margin	$	4,237,127				3.51	%	$	3,850,998				3.46	%	$	3,323,819				3.29	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,451,234				1.51	%	$	7,331,364				1.48	%	$	6,542,935				1.11	%
Total deposits / total cost of deposits	$	7,582,337				1.58	%	$	7,487,450				1.55	%	$	6,914,264				1.33	%
Total funding / total cost of funds	$	7,654,285				1.60	%	$	7,592,010				1.58	%	$	7,290,849				1.50	%

(1) Includes FHLBNY stock in the average balance, and dividend income on FHLBNY stock in interest income.
(2) No material impact of prepayment penalty interest income in 3Q2024, 2Q2024, or 3Q2023

Net Interest Income Analysis

	Nine Months Ended
	September 30, 2024							September 30, 2023
(In thousands)	Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	200,627		$	7,556	5.03	%	$	125,560		$	3,360	3.58	%
Securities		3,289,635			128,679	5.23	%		3,276,065			118,557	4.84	%
Resell agreements		102,197			5,122	6.69	%		8,003			432	7.22	%
Total loans, net ⁽¹⁾⁽²⁾		4,431,801			157,355	4.74	%		4,216,391			139,744	4.43	%
Total interest-earning assets		8,024,260			298,712	4.97	%		7,626,019			262,093	4.60	%
Non-interest-earning assets:
Cash and due from banks		5,862							5,067
Other assets		219,096							210,112
Total assets	$	8,249,218						$	7,841,198

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	3,608,927		$	73,033	2.70	%	$	3,248,278		$	40,010	1.65	%
Time deposits		207,374			5,622	3.62	%		161,756			2,030	1.68	%
Brokered CDs		159,041			6,224	5.23	%		383,521			13,769	4.80	%
Total interest-bearing deposits		3,975,342			84,879	2.85	%		3,793,555			55,809	1.97	%
Borrowings		154,564			4,497	3.89	%		365,262			12,292	4.50	%
Total interest-bearing liabilities		4,129,906			89,376	2.89	%		4,158,817			68,101	2.19	%
Non-interest-bearing liabilities:
Demand and transaction deposits		3,417,970							3,086,482
Other liabilities		70,476							72,821
Total liabilities		7,618,352							7,318,120
Stockholders’ equity		630,866							523,078
Total liabilities and stockholders’ equity	$	8,249,218						$	7,841,198

Net interest income / interest rate spread				$	209,336	2.08	%				$	193,992	2.41	%
Net interest-earning assets / net interest margin	$	3,894,354				3.48	%	$	3,467,202				3.40	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,234,271				1.45	%	$	6,496,516				0.87	%
Total deposits / total cost of deposits	$	7,393,312				1.53	%	$	6,880,037				1.08	%
Total funding / total cost of funds	$	7,547,876				1.58	%	$	7,245,299				1.26	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in September YTD 2024 and September YTD 2023 of $18 thousand and $0, respectively.

Deposit Portfolio Composition

	Three Months Ended
(In thousands)	September 30, 2024				June 30, 2024				September 30, 2023
	Ending Balance		Average Balance		Ending Balance		Average Balance		Ending Balance		Average Balance
Non-interest-bearing demand deposit accounts	$	3,801,834	$	3,721,398	$	3,445,068	$	3,390,941	$	2,808,300	$	2,920,737
NOW accounts		186,557		188,250		192,452		191,253		192,654		192,883
Money market deposit accounts		2,959,264		2,986,434		3,093,644		3,202,365		3,059,982		2,893,930
Savings accounts		327,935		331,816		336,943		336,240		357,470		359,214
Time deposits		216,901		223,337		227,437		210,565		180,529		176,171
Brokered certificates of deposit (“CDs”)		102,073		131,103		153,444		156,086		391,919		371,329
Total deposits	$	7,594,564	$	7,582,338	$	7,448,988	$	7,487,450	$	6,990,854	$	6,914,264

Total deposits excluding Brokered CDs	$	7,492,491	$	7,451,235	$	7,295,544	$	7,331,364	$	6,598,935	$	6,542,935

	Three Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023
(In thousands)	Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds

Non-interest bearing demand deposit accounts	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
NOW accounts	0.90	%	1.09	%	1.07	%	1.07	%	0.95	%	1.01	%
Money market deposit accounts	3.00	%	3.24	%	3.08	%	2.93	%	2.31	%	2.14	%
Savings accounts	1.42	%	1.64	%	1.67	%	1.37	%	1.16	%	1.14	%
Time deposits	3.83	%	3.83	%	3.50	%	3.63	%	2.88	%	2.53	%
Brokered CDs	4.89	%	5.43	%	4.98	%	5.13	%	5.14	%	5.21	%
Total deposits	1.43	%	1.58	%	1.59	%	1.55	%	1.46	%	1.33	%

Interest-bearing deposits excluding Brokered CDs	2.80	%	3.02	%	2.88	%	2.74	%	2.16	%	2.00	%

⁽¹⁾ Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.

Asset Quality

(In thousands)	September 30, 2024		June 30, 2024		September 30, 2023
Loans 90 days past due and accruing	$	—	$	—	$	—
Nonaccrual loans held for sale		989		989		2,189
Nonaccrual loans – Commercial		17,108		23,778		28,041
Nonaccrual loans – Retail		10,542		10,924		6,283
Nonaccrual securities		8		29		31
Total nonperforming assets	$	28,647	$	35,720	$	36,544

Nonaccrual loans:
Commercial and industrial	$	1,849	$	8,428	$	7,575
Multifamily		—		—		—
Commercial real estate		4,146		4,231		4,575
Construction and land development		11,113		11,119		15,891
Total commercial portfolio		17,108		23,778		28,041

Residential real estate lending		7,578		7,756		3,009
Consumer solar		2,848		2,794		2,817
Consumer and other		116		374		457
Total retail portfolio		10,542		10,924		6,283
Total nonaccrual loans	$	27,650	$	34,702	$	34,324

Credit Quality

	September 30, 2024		June 30, 2024		September 30, 2023
($ in thousands)
Criticized and classified loans
Commercial and industrial	$	45,329	$	53,940	$	45,959
Multifamily		13,386		10,242		10,999
Commercial real estate		8,186		8,311		8,762
Construction and land development		11,113		11,119		15,891
Residential real estate lending		7,578		7,756		3,009
Consumer solar		2,848		2,794		2,817
Consumer and other		116		374		457
Total loans	$	88,556	$	94,536	$	87,894

Criticized and classified loans to total loans
Commercial and industrial	1.00	%	1.21	%	1.05	%
Multifamily	0.29	%	0.23	%	0.25	%
Commercial real estate	0.18	%	0.19	%	0.20	%
Construction and land development	0.24	%	0.25	%	0.36	%
Residential real estate lending	0.17	%	0.17	%	0.07	%
Consumer solar	0.06	%	0.06	%	0.06	%
Consumer and other	—	%	0.01	%	0.01	%
Total loans	1.94	%	2.12	%	2.00	%

	September 30, 2024				June 30, 2024				September 30, 2023
	Annualized net charge-offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge-offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge-offs (recoveries) to average loans		ACL to total portfolio balance
Commercial and industrial	2.14	%	1.01	%	0.32	%	1.44	%	—	%	1.71	%
Multifamily	—	%	0.37	%	—	%	0.38	%	0.45	%	0.46	%
Commercial real estate	—	%	0.40	%	—	%	0.40	%	—	%	0.64	%
Construction and land development	—	%	3.73	%	—	%	3.60	%	—	%	3.68	%
Residential real estate lending	(0.03	)%	0.91	%	(0.18	)%	0.88	%	(0.07	)%	1.13	%
Consumer solar	1.58	%	7.68	%	2.57	%	7.00	%	1.88	%	6.72	%
Consumer and other	1.05	%	6.44	%	0.01	%	6.49	%	0.04	%	6.00	%
Total loans	0.61	%	1.35	%	0.25	%	1.42	%	0.27	%	1.60	%

Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.

	As of and for the									As of and for the
	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Core operating revenue
Net Interest Income (GAAP)	$	72,107		$	69,192		$	63,728		$	209,336		$	193,992
Non-interest income (GAAP)		8,939			9,258			6,780			28,426			19,930
Add: Securities loss		3,230			2,691			1,699			8,695			5,052
Less: ICS One-Way Sell Fee Income⁽¹⁾		(8,085	)		(4,859	)		—			(15,847	)		—
Less: Changes in fair value of loans held-for-sale		4,265			—			—			4,265			—
Less: Subdebt repurchase gain⁽²⁾		(669	)		(406	)		(637	)		(1,076	)		(1,417	)
Add: Tax (credits) depreciation on solar investments⁽³⁾		1,089			1,815			—			1,095			—
Core operating revenue (non-GAAP)		80,876			77,691			71,570			234,894			217,557

Core non-interest expense
Non-interest expense (GAAP)	$	40,964		$	39,512		$	37,339		$	118,629		$	113,495
Add: Gain on settlement of lease termination⁽⁴⁾		—			—			—			499			—
Less: Severance costs⁽⁵⁾		(241	)		(44	)		(332	)		(471	)		(617	)
Core non-interest expense (non-GAAP)		40,723			39,468			37,007			118,657			112,878

Core net income
Net Income (GAAP)	$	27,942		$	26,753		$	22,308		$	81,944		$	65,284
Add: Securities loss		3,230			2,691			1,699			8,695			5,052
Less: ICS One-Way Sell Fee Income⁽¹⁾		(8,085	)		(4,859	)		—			(15,847	)		—
Less: Changes in fair value of loans held-for-sale		4,265			—			—			4,265			—
Less: Gain on settlement of lease termination⁽⁴⁾		—			—			—			(499	)		—
Less: Subdebt repurchase gain⁽²⁾		(669	)		(406	)		(637	)		(1,076	)		(1,417	)
Add: Severance costs⁽⁵⁾		241			44			332			471			617
Add: Tax (credits) depreciation on solar investments⁽³⁾		1,089			1,815			—			1,095			—
Less: Tax on notable items		(19	)		180			(396	)		764			(1,151	)
Core net income (non-GAAP)		27,994			26,218			23,306			79,812			68,385

Tangible common equity
Stockholders’ equity (GAAP)	$	698,332		$	646,112		$	546,291		$	698,332		$	546,291
Less: Minority interest		(133	)		(133	)		(133	)		(133	)		(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,669	)		(1,852	)		(2,439	)		(1,669	)		(2,439	)
Tangible common equity (non-GAAP)		683,594			631,191			530,783			683,594			530,783

Average tangible common equity
Average stockholders’ equity (GAAP)	$	668,401		$	623,024		$	538,753		$	630,866		$	523,078
Less: Minority interest		(133	)		(133	)		(133	)		(133	)		(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,759	)		(1,941	)		(2,547	)		(1,940	)		(2,768	)
Average tangible common equity (non-GAAP)		653,573			608,014			523,137			615,857			507,241

(1) Included in service charges on deposit accounts in the Consolidated Statements of Income
(2) Included in other income in the Consolidated Statements of Income
(3) Included in equity method investments income in the Consolidated Statements of Income
(4) Included in occupancy and depreciation in the Consolidated Statements of Income
(5) Included in compensation and employee benefits in the Consolidated Statements of Income

Reconciliation of GAAP to Non-GAAP Financial Measures
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure.

	As of and for the									As of and for the
	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023

Core return on average assets
Numerator: Core net income (non-GAAP)	$	27,994		$	26,218		$	23,306		$	79,812		$	68,385
Denominator: Total average assets (GAAP)	$	8,393,490		$	8,276,016		$	7,904,566			8,249,218			7,841,198
Core return on average assets (non-GAAP)		1.33	%		1.27	%		1.17	%		1.29	%		1.17	%

Core return on average tangible common equity
Numerator: Core net income (non-GAAP)	$	27,994		$	26,218		$	23,306		$	79,812		$	68,385
Denominator: Average tangible common equity (non-GAAP)	$	653,573		$	608,014		$	523,137			615,857			507,241
Core return on average tangible common equity (non-GAAP)		17.04	%		17.34	%		17.67	%		17.31	%		18.02	%

Core efficiency ratio
Numerator: Core non-interest expense (non-GAAP)	$	40,723		$	39,468		$	37,007		$	118,657		$	112,878
Denominator: Core operating revenue (non-GAAP)		80,876			77,691			71,570			234,894			217,557
Core efficiency ratio (non-GAAP)		50.35	%		50.80	%		51.71	%		50.52	%		51.88	%

The MIL Network –

January 25, 2025

MIL-OSI: Donegal Group Inc. Announces Third Quarter and First Nine Months of 2024 Results

Source: GlobeNewswire (MIL-OSI)

MARIETTA, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — Donegal Group Inc. (NASDAQ: DGICA) and (NASDAQ: DGICB) today reported its financial results for the third quarter and first nine months of 2024.

Significant Items for third quarter of 2024 (all comparisons to third quarter of 2023):

Net income of $16.8 million, or 51 cents per diluted Class A share, compared to net loss of $0.8 million, or 2 cents per Class A share
Net premiums earned increased 6.0% to $238.0 million
Net premiums written¹ increased 5.9% to $232.2 million
Combined ratio of 96.4%, compared to 104.5%
Net income included after-tax net investment gains of $1.5 million, or 5 cents per diluted Class A share, compared to after-tax net investment losses of $1.0 million, or 3 cents per Class A share
Book value per share of $15.22 at September 30, 2024, compared to $14.26

Financial Summary

	Three Months Ended September 30,								Nine Months Ended September 30,
		2024			2023		% Change			2024			2023		% Change
	(dollars in thousands, except per share amounts)

Income Statement Data
Net premiums earned	$	237,957		$	224,393		6.0	%	$	700,017		$	655,886		6.7	%
Investment income, net		10,827			10,536		2.8			32,868			30,143		9.0
Net investment gains (losses)		1,876			(1,243	)	NM²			4,725			930		408.1
Total revenues		251,738			233,928		7.6			739,651			687,870		7.5
Net income (loss)		16,752			(805	)	NM			26,860			6,396		319.9
Non-GAAP operating income¹		15,270			176		NM			23,127			5,661		308.5
Annualized return on average equity		13.4	%		-0.7	%	14.1 pts			7.2	%		1.8	%	5.4 pts

Per Share Data
Net income (loss) – Class A (diluted)	$	0.51		$	(0.02	)	NM		$	0.81		$	0.20		305.0	%
Net income (loss) – Class B		0.46			(0.02	)	NM			0.74			0.17		335.3
Non-GAAP operating income – Class A (diluted)		0.46			0.01		NM			0.70			0.17		311.8
Non-GAAP operating income – Class B		0.42			–		NM			0.63			0.15		320.0
Book value		15.22			14.26		6.7	%		15.22			14.26		6.7

¹The “Definitions of Non-GAAP Financial Measures” section of this release defines and reconciles data that we prepare on an accounting basis other than U.S. generally accepted accounting principles (“GAAP”).

²Not meaningful.

Management Commentary

“We are pleased that many of the strategic initiatives we implemented in recent years contributed to significant improvement in our financial results for the third quarter of 2024,” said Kevin G. Burke, President and Chief Executive Officer of Donegal Group Inc.

“With the exit from commercial lines markets in Georgia and Alabama essentially completed at the end of the second quarter of 2024, solid new business writings, rate achievement and retention levels led to a 6.4% increase in commercial lines net premiums written for the third quarter of 2024. Our personal lines net premiums written growth rate for the third quarter was 5.4%, primarily attributable to strong rate increases and policy retention that were partially offset by intentional strategic actions to slow growth and further improve profitability.

“Despite higher-than-average weather-related losses during the quarter, primarily attributable to Hurricane Helene in late September, our combined ratio improved significantly to 96.4%, compared to 104.5% for the prior-year quarter. Our core loss ratios improved across all of our major lines of business. We attribute that improvement to the favorable impact of numerous ongoing underwriting initiatives and higher net premiums earned from renewal rate increases that we implemented over the past two years.”

Mr, Burke concluded, “We have growing confidence that the continuing execution of our strategies will deliver sustained excellent financial performance.”

Insurance Operations

Donegal Group is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in three Mid-Atlantic states (Delaware, Maryland and Pennsylvania), five Southern states (Georgia, North Carolina, South Carolina, Tennessee and Virginia), eight Midwestern states (Illinois, Indiana, Iowa, Michigan, Nebraska, Ohio, South Dakota and Wisconsin) and five Southwestern states (Arizona, Colorado, New Mexico, Texas and Utah). Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group conduct business together as the Donegal Insurance Group.

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024		2023	% Change			2024		2023	% Change
	(dollars in thousands)

Net Premiums Earned
Commercial lines	$	136,401	$	135,432	0.7	%	$	402,982	$	399,427	0.9	%
Personal lines		101,556		88,961	14.2			297,035		256,460	15.8
Total net premiums earned	$	237,957	$	224,393	6.0	%	$	700,017	$	655,887	6.7	%

Net Premiums Written
Commercial lines:
Automobile	$	41,464	$	37,535	10.5	%	$	142,067	$	134,853	5.3	%
Workers’ compensation		23,934		24,371	-1.8			82,599		85,315	-3.2
Commercial multi-peril		50,155		44,949	11.6			163,528		147,622	10.8
Other		10,548		11,639	-9.4			35,649		39,913	-10.7
Total commercial lines		126,101		118,494	6.4			423,843		407,703	4.0
Personal lines:
Automobile		65,150		58,038	12.3			188,958		161,348	17.1
Homeowners		38,288		39,633	-3.4			109,655		105,035	4.4
Other		2,669		3,021	-11.7			8,383		8,917	-6.0
Total personal lines		106,107		100,692	5.4			306,996		275,300	11.5
Total net premiums written	$	232,208	$	219,186	5.9	%	$	730,839	$	683,003	7.0	%

Net Premiums Written

The 5.9% increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023, as shown in the table above, represents the combination of 6.4% growth in commercial lines net premiums written and 5.4% growth in personal lines net premiums written. The $13.0 million increase in net premiums written for the third quarter of 2024 compared to the third quarter of 2023 included:

Commercial Lines: $7.6 million increase that we attribute primarily to new business writings, strong premium retention, and a continuation of renewal premium increases in lines other than workers’ compensation, offset partially by planned attrition in states in which we are executing ongoing profit improvement initiatives as part of our state-specific strategies.
Personal Lines: $5.4 million increase that we attribute primarily to a continuation of renewal premium rate increases and strong policy retention, offset partially by planned attrition due to non-renewal actions.

Underwriting Performance

We evaluate the performance of our commercial lines and personal lines segments primarily based upon the underwriting results of our insurance subsidiaries as determined under statutory accounting practices. The following table presents comparative details with respect to the GAAP and statutory combined ratios¹ for the three and nine months ended September 30, 2024 and 2023:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023

GAAP Combined Ratios (Total Lines)
Loss ratio – core losses	50.1	%	56.7	%	54.5	%	56.0	%
Loss ratio – weather-related losses	10.3		11.5		8.6		9.1
Loss ratio – large fire losses	3.7		4.9		5.2		5.3
Loss ratio – net prior-year reserve development	-2.6		-3.3		-2.2		-2.4
Loss ratio	61.5		69.8		66.1		68.0
Expense ratio	34.5		34.1		34.0		34.9
Dividend ratio	0.4		0.6		0.5		0.6
Combined ratio	96.4	%	104.5	%	100.6	%	103.5	%

Statutory Combined Ratios
Commercial lines:
Automobile	101.5	%	86.5	%	98.2	%	94.8	%
Workers’ compensation	84.7		97.7		104.1		93.1
Commercial multi-peril	88.4		114.8		100.4		113.8
Other	59.4		76.2		78.4		82.7
Total commercial lines	89.8		97.5		98.6		100.2
Personal lines:
Automobile	97.8		109.8		97.8		106.1
Homeowners	116.8		128.9		107.5		111.2
Other	102.2		46.4		97.2		81.3
Total personal lines	104.7		119.4		101.2		107.2
Total lines	96.0	%	105.2	%	99.7	%	102.9	%

Loss Ratio

For the third quarter of 2024, the loss ratio decreased to 61.5%, compared to 69.8% for the third quarter of 2023. For the commercial lines segment, the core loss ratio of 48.5% for the third quarter of 2024 decreased from 53.7% for the third quarter of 2023, due largely to lower severity of large casualty losses. For the personal lines segment, the core loss ratio of 52.5% for the third quarter of 2024 decreased from 61.8% for the third quarter of 2023, due largely to the favorable impact of premium rate increases on net premiums earned for that segment. Core loss ratios in both segments improved compared to the respective ratios for the first half of 2024.

Weather-related losses were $24.4 million, or 10.3 percentage points of the loss ratio, for the third quarter of 2024, compared to $25.7 million, or 11.5 percentage points of the loss ratio, for the third quarter of 2023. Weather-related loss activity for the third quarter of 2024 was higher than our previous five-year average of $18.8 million, or 9.4 percentage points of the loss ratio, for third-quarter weather-related losses. Our insurance subsidiaries incurred $6.0 million in net losses from Hurricane Helene in September 2024.

Large fire losses, which we define as individual fire losses in excess of $50,000, for the third quarter of 2024 were $8.8 million, or 3.7 percentage points of the loss ratio. That amount was lower than large fire losses of $11.0 million, or 4.9 percentage points of the loss ratio, for the third quarter of 2023. We experienced a decrease in commercial property fire losses compared to the prior-year quarter.

Net favorable development of reserves for losses incurred in prior accident years of $6.2 million decreased the loss ratio for the third quarter of 2024 by 2.6 percentage points, compared to $7.3 million that decreased the loss ratio for the third quarter of 2023 by 3.3 percentage points. Our insurance subsidiaries experienced favorable development primarily in the commercial multi-peril and other commercial lines of business.

Expense Ratio

The expense ratio was 34.5% for the third quarter of 2024, compared to 34.1% for the third quarter of 2023. The modest increase in the expense ratio primarily reflected an increase in underwriting-based incentive costs as well as higher technology systems-related expenses that were primarily due to increased costs related to our ongoing systems modernization project, a portion of which Donegal Mutual Insurance Company allocates to our insurance subsidiaries. This increase was offset partially by impacts of various expense reduction initiatives, including agency incentive program revisions, commission schedule adjustments, targeted staffing reductions, and hiring restrictions for open employment positions, among others. We expect the impact from allocated costs from Donegal Mutual Insurance Company to our insurance subsidiaries related to the ongoing systems modernization project will peak at approximately 1.3 percentage points of the expense ratio for the full year of 2024 before beginning to subside gradually in subsequent years.

Investment Operations

Donegal Group’s investment strategy is to generate an appropriate amount of after-tax income on its invested assets while minimizing credit risk through investment in high-quality securities. As a result, we had invested 96.2% of our consolidated investment portfolio in diversified, highly rated and marketable fixed-maturity securities at September 30, 2024.

	September 30, 2024					December 31, 2023
	Amount			%		Amount			%
	(dollars in thousands)
Fixed maturities, at carrying value:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	173,663		12.7	%	$	176,991		13.3	%
Obligations of states and political subdivisions		413,040		30.1			415,280		31.3
Corporate securities		427,372		31.2			399,640		30.1
Mortgage-backed securities		304,911		22.3			278,260		21.0
Allowance for expected credit losses		(1,483	)	-0.1			(1,326	)	-0.1
Total fixed maturities		1,317,503		96.2			1,268,845		95.6
Equity securities, at fair value		35,957		2.6			25,903		2.0
Short-term investments, at cost		15,805		1.2			32,306		2.4
Total investments	$	1,369,265		100.0	%	$	1,327,054		100.0	%

Average investment yield		3.3	%				3.1	%
Average tax-equivalent investment yield		3.3	%				3.2	%
Average fixed-maturity duration (years)		5.1					4.3

Net investment income of $10.8 million for the third quarter of 2024 increased modestly compared to $10.5 million for the third quarter of 2023. The increase in net investment income primarily reflected an increase in average investment yield relative to the prior-year third quarter.

Net investment gains of $1.9 million for the third quarter of 2024 were primarily related to unrealized gains in the fair value of equity securities held at September 30, 2024. Net investment losses of $1.2 million for the third quarter of 2023 were primarily related to unrealized losses in the fair value of equity securities held at September 30, 2023.

Our book value per share was $15.22 at September 30, 2024, compared to $14.39 at December 31, 2023, with the increase related to net income as well as $11.9 million of after-tax unrealized gains within our available-for-sale fixed-maturity portfolio during 2024 that increased our book value by $0.37 per share, offset partially by cash dividends declared.

Definitions of Non-GAAP Financial Measures

We prepare our consolidated financial statements on the basis of GAAP. Our insurance subsidiaries also prepare financial statements based on statutory accounting principles state insurance regulators prescribe or permit (“SAP”). In addition to using GAAP-based performance measurements, we also utilize certain non-GAAP financial measures that we believe provide value in managing our business and for comparison to the financial results of our peers. These non-GAAP measures are net premiums written, operating income or loss and statutory combined ratio.

Net premiums written and operating income or loss are non-GAAP financial measures investors in insurance companies commonly use. We define net premiums written as the amount of full-term premiums our insurance subsidiaries record for policies effective within a given period less premiums our insurance subsidiaries cede to reinsurers. We define operating income or loss as net income or loss excluding after-tax net investment gains or losses, after-tax restructuring charges and other significant non-recurring items. Because our calculation of operating income or loss may differ from similar measures other companies use, investors should exercise caution when comparing our measure of operating income or loss to the measure of other companies.

The following table provides a reconciliation of net premiums earned to net premiums written for the periods indicated:


	Three Months Ended September 30,								Nine Months Ended September 30,
		2024			2023		% Change			2024		2023	% Change
	(dollars in thousands)

Reconciliation of Net Premiums
Earned to Net Premiums Written
Net premiums earned	$	237,957		$	224,393		6.0	%	$	700,017	$	655,886	6.7	%
Change in net unearned premiums		(5,749	)		(5,207	)	10.4			30,822		27,117	13.7
Net premiums written	$	232,208		$	219,186		5.9	%	$	730,839	$	683,003	7.0	%

The following table provides a reconciliation of net income (loss) to operating income for the periods indicated:

	Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023		% Change		2024			2023		% Change
	(dollars in thousands, except per share amounts)

Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income
Net income (loss)	$	16,752		$	(805	)	NM	$	26,860		$	6,396		319.9	%
Investment (gains) losses (after tax)		(1,482	)		981		NM		(3,733	)		(735	)	407.9
Non-GAAP operating income	$	15,270		$	176		NM	$	23,127		$	5,661		308.5	%

Per Share Reconciliation of Net Income (Loss)
to Non-GAAP Operating Income
Net income (loss) – Class A (diluted)	$	0.51		$	(0.02	)	NM	$	0.81		$	0.20		305.0	%
Investment (gains) losses (after tax)		(0.05	)		0.03		NM		(0.11	)		(0.03	)	266.7
Non-GAAP operating income – Class A	$	0.46		$	0.01		NM	$	0.70		$	0.17		311.8	%

Net income (loss) – Class B	$	0.46		$	(0.02	)	NM	$	0.74		$	0.17		335.3	%
Investment (gains) losses (after tax)		(0.04	)		0.02		NM		(0.11	)		(0.02	)	450.0
Non-GAAP operating income – Class B	$	0.42		$	–		NM	$	0.63		$	0.15		320.0	%

The statutory combined ratio is a non-GAAP standard measurement of underwriting profitability that is based upon amounts determined under SAP. The statutory combined ratio is the sum of:

the statutory loss ratio, which is the ratio of calendar-year incurred losses and loss expenses, excluding anticipated salvage and subrogation recoveries, to premiums earned;
the statutory expense ratio, which is the ratio of expenses incurred for net commissions, premium taxes and underwriting expenses to premiums written; and
the statutory dividend ratio, which is the ratio of dividends to holders of workers’ compensation policies to premiums earned.

The statutory combined ratio does not reflect investment income, federal income taxes or other non-operating income or expense. A statutory combined ratio of less than 100% generally indicates underwriting profitability.

Dividend Information

On October 17, 2024, we declared a regular quarterly cash dividend of $0.1725 per share for our Class A common stock and $0.155 per share for our Class B common stock, which are payable on November 15, 2024 to stockholders of record as of the close of business on November 1, 2024.

Pre-Recorded Webcast

At approximately 8:30 am ET on Thursday, October 24, 2024, we will make available in the Investors section of our website a pre-recorded audio webcast featuring management commentary on our quarterly results and general business updates. You may listen to the pre-recorded webcast by accessing the link on our website at http://investors.donegalgroup.com. A supplemental investor presentation is also available via our website.

About the Company

Donegal Group Inc. is an insurance holding company whose insurance subsidiaries and affiliates offer property and casualty lines of insurance in certain Mid-Atlantic, Midwestern, Southern and Southwestern states. Donegal Mutual Insurance Company and the insurance subsidiaries of Donegal Group Inc. conduct business together as the Donegal Insurance Group. The Donegal Insurance Group has an A.M. Best rating of A (Excellent).

The Class A common stock and Class B common stock of Donegal Group Inc. trade on the NASDAQ Global Select Market under the symbols DGICA and DGICB, respectively. We are focused on several primary strategies, including achieving sustained excellent financial performance, strategically modernizing our operations and processes to transform our business, capitalizing on opportunities to grow profitably and delivering a superior experience to our agents and customers.

Safe Harbor

We base all statements contained in this release that are not historic facts on our current expectations. Such statements are forward-looking in nature (as defined in the Private Securities Litigation Reform Act of 1995) and necessarily involve risks and uncertainties. Forward-looking statements we make may be identified by our use of words such as “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “seek,” “estimate” and similar expressions. Our actual results could vary materially from our forward-looking statements. The factors that could cause our actual results to vary materially from the forward-looking statements we have previously made include, but are not limited to, adverse litigation and other trends that could increase our loss costs (including social inflation, labor shortages and escalating medical, automobile and property repair costs), adverse and catastrophic weather events (including from changing climate conditions), our ability to maintain profitable operations (including our ability to underwrite risks effectively and charge adequate premium rates), the adequacy of the loss and loss expense reserves of our insurance subsidiaries, the availability and successful operation of the information technology systems our insurance subsidiaries utilize, the successful development of new information technology systems to allow our insurance subsidiaries to compete effectively, business and economic conditions in the areas in which we and our insurance subsidiaries operate, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, legal and judicial developments (including those related to COVID-19 business interruption coverage exclusions), changes in regulatory requirements, our ability to attract and retain independent insurance agents, changes in our A.M. Best rating and the other risks that we describe from time to time in our filings with the Securities and Exchange Commission. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Investor Relations Contacts

Karin Daly, Vice President, The Equity Group Inc.

Phone: (212) 836-9623
E-mail: kdaly@equityny.com

Jeffrey D. Miller, Executive Vice President & Chief Financial Officer
Phone: (717) 426-1931
E-mail: investors@donegalgroup.com

Financial Supplement

Donegal Group Inc.
Consolidated Statements of Income (Loss)
(unaudited; in thousands, except share data)

		Quarter Ended September 30,
			2024		2023

Net premiums earned		$	237,957	$	224,393
Investment income, net of expenses			10,827		10,536
Net investment gains (losses)			1,876		(1,243	)
Lease income			77		86
Installment payment fees			1,001		156
	Total revenues		251,738		233,928

Net losses and loss expenses			146,426		156,683
Amortization of deferred acquisition costs			40,200		39,332
Other underwriting expenses			41,827		37,155
Policyholder dividends			1,007		1,399
Interest			367		156
Other expenses, net			1,499		208
	Total expenses		231,326		234,933

Income (loss) before income tax expense (benefit)			20,412		(1,005	)
Income tax expense (benefit)			3,660		(200	)

Net income (loss)		$	16,752	$	(805	)

Net income (loss) per common share:
	Class A – basic and diluted	$	0.51	$	(0.02	)
	Class B – basic and diluted	$	0.46	$	(0.02	)

Supplementary Financial Analysts’ Data

Weighted-average number of shares
	outstanding:
	Class A – basic		27,978,435		27,594,973
	Class A – diluted		28,058,399		27,665,293
	Class B – basic and diluted		5,576,775		5,576,775

Net premiums written		$	232,208	$	219,186

Book value per common share
	at end of period	$	15.22	$	14.26

Donegal Group Inc.
Consolidated Statements of Income
(unaudited; in thousands, except share data)

		Nine Months Ended September 30,
			2024		2023

Net premiums earned		$	700,017	$	655,886
Investment income, net of expenses			32,868		30,143
Net investment gains			4,725		930
Lease income			237		262
Installment payment fees			1,804		649
	Total revenues		739,651		687,870

Net losses and loss expenses			462,683		446,024
Amortization of deferred acquisition costs			120,458		115,065
Other underwriting expenses			117,604		113,715
Policyholder dividends			3,248		4,088
Interest			677		464
Other expenses, net			2,309		969
	Total expenses		706,979		680,325

Income before income tax expense			32,672		7,545
Income tax expense			5,812		1,149

Net income		$	26,860	$	6,396

Net income per common share:
	Class A – basic	$	0.82	$	0.20
	Class A – diluted	$	0.81	$	0.20
	Class B – basic and diluted	$	0.74	$	0.17

Supplementary Financial Analysts’ Data

Weighted-average number of shares outstanding:
	Class A – basic		27,878,552		27,390,883
	Class A – diluted		27,916,904		27,507,706
	Class B – basic and diluted		5,576,775		5,576,775

Net premiums written		$	730,839	$	683,003

Book value per common share
	at end of period	$	15.22	$	14.26


Donegal Group Inc.
Consolidated Balance Sheets
(in thousands)

			September 30,			December 31,
				2024			2023
			(unaudited)

ASSETS
Investments:
	Fixed maturities:
		Held to maturity, at amortized cost	$	694,663		$	679,497
		Available for sale, at fair value		622,840			589,348
	Equity securities, at fair value			35,957			25,903
	Short-term investments, at cost			15,805			32,306
		Total investments		1,369,265			1,327,054
Cash				28,651			23,792
Premiums receivable				194,254			179,592
Reinsurance receivable				434,078			441,431
Deferred policy acquisition costs				78,484			75,043
Prepaid reinsurance premiums				185,364			168,724
Other assets				56,030			50,658
		Total assets	$	2,346,126		$	2,266,294

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
	Losses and loss expenses		$	1,134,853		$	1,126,157
	Unearned premiums			646,870			599,411
	Accrued expenses			2,987			3,947
	Borrowings under lines of credit			35,000			35,000
	Other liabilities			13,046			22,034
		Total liabilities		1,832,756			1,786,549
Stockholders’ equity:
	Class A common stock			312			308
	Class B common stock			56			56
	Additional paid-in capital			342,186			335,694
	Accumulated other comprehensive loss			(20,951	)		(32,882	)
	Retained earnings			232,993			217,795
	Treasury stock			(41,226	)		(41,226	)
		Total stockholders’ equity		513,370			479,745
		Total liabilities and stockholders’ equity	$	2,346,126		$	2,266,294

The MIL Network –

January 25, 2025

MIL-OSI: Legible Announces $2.1 Million Private Placement Unit Offering and Appointment of Chief Technology Officer

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, Oct. 24, 2024 (GLOBE NEWSWIRE) — Legible Inc. (CSE: READ) (OTCQB: LEBGF) (FSE: D0T) (“Legible or “the Company”), a leading platform and innovator in digital literature, announces an offering of units (“Units”) for gross proceeds of $2,100,000 by way of a non-brokered private placement (the “Offering”) pursuant to exemptions from applicable securities laws. Each Unit consists of one common share (“Common Share(s)”) and one whole Common Share purchase warrant (“Warrant(s)”) with each Warrant entitling the holder to acquire 1 Common Share at a price of $0.14, at any time prior to 5:00 pm (PST) on the date that is two years from the closing date. If the volume weighted average trading price of the Common shares is at least $0.40 per Common Share for a period of 5 consecutive trading days, the expiry date of the Warrants may be accelerated by the Company to a date that is not less than 14 days after the date that notice of such acceleration is provided to the Warrant holders by way of a press release.

The Company has received subscription agreements totaling $1.7 Million. Closing may occur in tranches, with the first tranche expected to close on or about October 31, 2024.

Legible is also pleased to announce the appointment of Mr. Andrew Nelson to the position of Chief Technology Officer. Mr. Nelson is a Senior Software Engineer who brings nearly 20 years of experience in a wide array of technological and business development roles spanning a wide array of industries, having held a number of senior positions. Prior to Mr. Nelson’s appointment as Legible’s CTO, Mr. Nelson held the position of Director of Technology at Legible as of January 2024. Mr. Nelson’s proficiencies in software development, web design, cybersecurity, data analytics, organizational planning, and product development have helped companies create and implement scalable, customer-focused solutions to drive business growth and brand recognition. Mr. Nelson also has extensive executive and board experience.

Andrew Nelson stated, “I’m incredibly grateful to take on this leadership role at Legible, a company with such a positive mission to revolutionize how people read and interact with digital literature. Our technology roadmap is centered around creating personalized, accessible, and intuitive experiences that seamlessly integrate into everyday life. As CTO, I’m committed to ensuring that our product innovation and leadership align fully with Legible’s mission, enriching the way audiences engage with literature across the globe.”

Kaleeg Hainsworth, CEO of Legible, commented, “We are deeply grateful for the support of our lead investor, a U.S.-based private financial services corporation, which has committed CDN$1.61 million to this Offering. This funding will strengthen our balance sheet and empower us to ramp up marketing and sales initiatives, fueling the growth of our Legible Unbound Subscription service. At just US$9.99 per month, Legible Unbound is gaining traction by offering unlimited access to a vast and growing catalogue of eBooks and audiobooks. We are thrilled also to welcome Andrew Nelson as our new Chief Technology Officer. Andrew’s sophisticated understanding of user experience, technological trends, and eCommerce will be invaluable as we scale globally across all our verticals. He is experienced, proven, genuinely understands what Legible is achieving, resilient, a fantastic people person, and is greatly respected in his community. Andrew enhances our executive team and supports Legible’s mission to innovate and lead in the digital literary space, now more than ever.”

Further to Legible’s Press Release dated July 18, 2024 wherein Legible announced its warrant incentive program (the “WIP”), Legible is pleased to announce the WIP resulted in: (i) a total of 3,374,936 warrants being exercised at $0.07 for proceeds of $236,246, which included $180,233 in the settlement of outstanding indebtedness; and (ii) the issuance of new warrants exercisable on or before August 16, 2025 at $0.10 for an additional 3,374,936 common shares. In the event that the volume weighted average trading price of the common shares of Legible on the Canadian Securities Exchange is at least $0.30 for a minimum of 10 consecutive trading days (whether or not trading occurs on all such days), Legible may, in its sole discretion, issue a news release announcing that the exercise period has been reduced to twenty-one (21) days following the date of the issuance of such news release (the “Accelerated Expiry Date”). If such news release is issued, all such warrants that are not exercised prior to 5:00 p.m. Vancouver time on the Accelerated Expiry Date will expire immediately after such time on the Accelerated Expiry Date.

In addition, further to the Company’s press release dated January 24, 2024, Legible announces the conclusion of its engagement with Investor Cubed Inc. (“Investor Cubed”), which provided investor relations and shareholder communication services, effective immediately. Legible extends its gratitude to Investor Cubed for their contributions and support during the engagement.

About Legible Inc.

Legible is a groundbreaking, mobile-centric global company specializing in eBook and audiobook entertainment. Its extensive partnerships encompass four of the Big 5 Publishers, the world’s largest eBook distributors, and outstanding publishers of all sizes, enabling Legible to deliver millions of eBooks and audiobooks, transforming any smart device into a source of cutting-edge infotainment.

Legible recently released My Model Kitchen – Vol. 2: Vegetables – The Garden of Earthly Delights, the second of 15 video-enriched Living Cookbooks by former supermodel, bestselling author, TV host and celebrity chef Cristina Ferrare, with an AI Sous Chef for each recipe. The Living Cookbooks and Ms. Ferrare have been featured twice on the Drew Barrymore Show and in many other major US media outlets.

A first mover in the rapidly expanding automotive infotainment market, Legible has partnered with media providers Faurecia Aptoide, Harman Ignite, LiveOne, and Visteon. Legible has the only Android Automotive app that delivers both audiobooks and eBooks to drivers and passengers in tens of millions of vehicles around the globe, positioning Legible at the forefront of the new world of in-car infotainment experiences.

The 2024 EdTech Breakthrough Award winner for eLearning Innovation of the Year, Legible is reshaping the digital publishing landscape, committed to gaining significant market share through its innovative 21st-century publishing solutions and enriched reading experiences. Visit Legible.com, where eBooks come to life.

Press Contacts:

Legible Inc.

Ms. Deborah Harford
EVP, Global Strategic Partnerships
invest@legible.com
Website: https://invest.legible.com

Legible Media Relations

Krupp Kommunications, Inc.
Ms. Kathy Giaconia
VP Media Relations
kgiaconia@kruppagency.com
1-213-324-5665
http://www.KruppAgency.com

Cautionary Note Regarding Forward Looking Information
This Press Release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”), including statements regarding Legible’s business. Such forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Legible’s control, including the impact of general economic conditions, industry conditions, currency fluctuations, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Legible believes that the expectations in its forward-looking statements are reasonable, they are based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward- looking information. As such, readers are cautioned not to place undue reliance on the forward- looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Legible does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/989cb8b1-ce9c-4e00-b6a0-53c60c30fc72

The MIL Network –

January 25, 2025

MIL-OSI: Media Advisory: Hut 8 Announces Conference Call to Discuss Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

MIAMI, Oct. 24, 2024 (GLOBE NEWSWIRE) — Hut 8 Corp. (Nasdaq | TSX: HUT) (“Hut 8” or the “Company”), a leading, vertically integrated operator of large-scale energy infrastructure and one of North America’s largest Bitcoin miners, will host a conference call and webinar on Wednesday, November 13, 2024 to review third quarter 2024 results.

Who:	Analysts, media, and investors are invited to attend.
What:	Hut 8 executives will review the Company’s financial results for the third quarter of 2024.
When:	Results will be shared via media release and on the Company’s website at https://hut8.com/investors/ on November 13, 2024. The conference call and webinar will begin at 8:30 a.m. ET.
Where:	The webcast can be viewed at: https://www.hut8.com/q3-2024/. Analysts can register here.

About Hut 8

Hut 8 Corp. is an energy infrastructure operator and Bitcoin miner with self-mining, hosting, managed services, and traditional data center operations across North America. Headquartered in Miami, Florida, Hut 8 Corp. has a portfolio comprising twenty sites: eleven Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, and Texas, five high performance computing data centers in British Columbia and Ontario, and four power generation assets in Ontario. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Hut 8 Investor Relations

Sue Ennis

ir@hut8.com

Hut 8 Media Relations

media@hut8.com

The MIL Network –

January 25, 2025

MIL-OSI: Bread Financial Declares Dividend on Common Stock

Source: GlobeNewswire (MIL-OSI)

COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.^® (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced that its Board of Directors declared a quarterly cash dividend of $0.21 per share on the Company’s common stock, payable on December 13, 2024 to stockholders of record at the close of business on November 8, 2024.

About Bread Financial^®
Bread Financial ^® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay ^® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback ^® American Express ^® Credit Card, Bread Rewards™ American Express ^® Credit Card and Bread Savings ^® products. 

Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.

Contacts
Brian Vereb – Investor Relations
Brian.Vereb@BreadFinancial.com

Susan Haugen – Investor Relations
Susan.Haugen@BreadFinancial.com

Rachel Stultz – Media
Rachel.Stultz@BreadFinancial.com

The MIL Network –

January 25, 2025

MIL-OSI: Resume trading for the Storebrand funds

Source: GlobeNewswire (MIL-OSI)

Lysaker, 24 October 2024

The suspension is lifted for the five below funds, and the live trading on Nasdaq Copenhagen can resume.

Regards

Storebrand Asset Management AS

Contacts:

Kim Toftegaard Andreassen, Director, Kim.Toftegaard.Andreassen@storebrand.com

Frode Aasen, Product Manager, fdc@storebrand.com

Fund name and share class	Symbol	ISIN
Storebrand Indeks – Alle Markeder A5	STIIAM	NO0010841588
Storebrand Indeks – Nye Markeder A5	STIINM	NO0010841570
Storebrand Global ESG Plus A5	STIGEP	NO0010841604
Storebrand Global Solutions A5	STIGS	NO0010841612
Storebrand Global Multifactor A5	STIGM	NO0010841596

Storebrand is Norway’s largest private asset manager with an AuM of around DKK 900 billions, and also a leading Nordic provider of sustainable pensions and savings. The company has been a global pioneer in ESG investing for over 25 years, offering broad and scalable solutions for both institutional and private investors in the Nordic region and other European countries. Storebrand delivers sustainable investment solutions and client value through a multi-boutique platform, with the brands Delphi Funds, SKAGEN Funds and Storebrand Funds.

The MIL Network –

January 25, 2025

MIL-OSI: National Fuel Gas Company Announces Management Change, Ronald C. Kraemer Announces Retirement Date

Source: GlobeNewswire (MIL-OSI)

WILLIAMSVILLE, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) — Today, National Fuel Gas Company (National Fuel or the Company) (NYSE: NFG) announced that Ronald C. Kraemer, Chief Operating Officer of National Fuel Gas Company and President of National Fuel’s pipeline and storage subsidiaries, has indicated his intention to retire effective Feb. 1, 2025, after more than 46 years with the Company.

Joseph N. Del Vecchio, Executive Vice President of National Fuel Gas Supply Corporation, will succeed him in the role of President of National Fuel Gas Supply Corporation and Empire Pipeline, Inc.

“Throughout his 46-year career, Ron has served with distinction, driving significant innovation and accomplishments across a range of senior roles in various capacities,” said David P. Bauer, President and Chief Executive Officer at National Fuel Gas Company. “Ron’s impact extends far beyond National Fuel, and we applaud him for his unwavering commitment.”

Having joined National Fuel in the management training program in 1978, Kraemer has been employed by various subsidiaries of National Fuel, including National Fuel Gas Distribution Corporation, Horizon Energy Development, and the two pipeline subsidiaries, holding numerous management and executive-level positions in engineering, operations, marketing, business development, and international business development. These companies represent a cross-section of the energy industry including utility, interstate pipeline and storage, international power, and natural gas project development.

“On behalf of our Board of Directors and the Company, I want to express my deepest appreciation to Ron for his contributions to National Fuel as an integral part of the executive team. His leadership, practical expertise and wisdom have contributed to the overall growth and success of the Company. I wish him and his family all the best in his well-deserved retirement,” Bauer said.

Del Vecchio, who holds undergraduate and master’s degrees in Mechanical Engineering as well as a degree in law from the University at Buffalo, began his career with the Company as a law clerk in 1995. He was hired as a Distribution Corporation Attorney in 1998. Throughout the years his responsibilities increased as he worked in the Utility’s Legal and Risk Management departments. In 2007 he was promoted to Assistant Vice President and then Vice President of National Fuel Resources, Inc. He transitioned back to the Utility in 2015 as Vice President and Chief Regulatory Counsel. Del Vecchio was named Senior Vice President of Supply Corporation in 2021, expanding his career into pipeline and storage operations, and was promoted to Executive Vice President in 2023.

National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0a907c05-1df8-4b37-9ed3-565acaf2ac37

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/735ff87e-b7a3-4b10-991e-c660d7ad0e2c

The MIL Network –

January 25, 2025

MIL-OSI: Bread Financial Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.^® (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, today announced its third quarter 2024 financial results. All earnings-related materials are now available at the company’s investor relations website, here.

Bread Financial President and Chief Executive Officer Ralph Andretta and Chief Financial Officer Perry Beberman will host a conference call at 8:30 a.m. ET today to discuss results. A link to the conference call will be available at the company’s investor relations website, and a replay will also be available there following the call.

About Bread Financial^®
Bread Financial ^® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay ^® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback ^® American Express ^® Credit Card, Bread Rewards™ American Express ^® Credit Card and Bread Savings ^® products.

Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.

Contacts
Brian Vereb — Investor Relations
Brian.Vereb@breadfinancial.com

Susan Haugen — Investor Relations
Susan.Haugen@breadfinancial.com

Rachel Stultz — Media
Rachel.Stultz@breadfinancial.com

The MIL Network –

January 25, 2025

MIL-OSI: Visteon Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

VAN BUREN TOWNSHIP, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) — Visteon Corporation (NASDAQ: VC) today reported third quarter financial results. Highlights include:

Sales of $980 million with Growth-over-Market of 6%¹
Net income of $39 million and adjusted net income of $63 million
Adjusted EBITDA of $119 million
Launched 30 new products in the quarter and 71 year-to-date
New business wins of $4.9 billion year-to-date
Net cash of $229 million at quarter end

Visteon reported solid net sales of $980 million in a challenging production environment. We delivered 6% outperformance relative to customer vehicle production, driven by strong demand for digital cockpit and electrification products. Our market outperformance was offset by lower customer production and reduced customer recoveries resulting from improved semiconductor supply.

Gross margin in the third quarter was $131 million. Net income attributable to Visteon was $39 million or $1.40 per diluted share and adjusted net income, a non-GAAP measure defined below, was $63 million or $2.26 per diluted share. Net income, as compared to the prior year, includes the favorable impact of strong operational performance and lower net engineering, partially offset by restructuring expense incurred in the third quarter of 2024. Adjusted EBITDA, a non-GAAP measure defined below, was $119 million in the third quarter and reflects the Company’s strong focus on operational execution, commercial excellence, and cost discipline.

For the first nine months, cash from operations was $224 million, capital expenditures were $96 million and adjusted free cash flow, a non-GAAP measure defined below, was $135 million. The company ended the third quarter with cash of $553 million and debt of $324 million. Our strong balance sheet, with a net cash position of $229 million, provides the flexibility to deliver on our capital allocation priorities.

Visteon launched 30 new products in the third quarter, with launches across each of its product lines. Key third quarter launches include an infotainment display system on the Tata Punch, highlighting our continued momentum in India; SmartCore⁽^TM) on an electric SUV for Lynk & Co for the European market and the Renault Grand Koleos hybrid for the Korean market; a digital cluster on the Nissan Qashqai, a popular SUV in Europe; and a wireless BMS for the all-electric Jeep Wagoneer.

Visteon secured $4.9 billion in new business through the first nine months of the year, including $2.5 billion of wins with OEMs in Asia excluding China. Our success in diversifying into adjacent end-markets also continued, with further momentum with two-wheeler and commercial vehicle OEMs. Third quarter wins included a large, curved display for multiple mass market vehicles in Europe for a global OEM, SmartCore™ and display wins for a SUV model for an Indian OEM and for an electric vehicle for a domestic China OEM. We also had a follow-on win for a digital cluster with a two-wheeler OEM in India.

“Visteon delivered solid sales and growth-over-market in the third quarter, demonstrating our ability to navigate a challenging customer production environment,” said President and CEO Sachin Lawande. “Demand from our customers remains robust for our diverse product portfolio targeting automotive megatrends of digitalization and electrification. Our continued success in securing new business wins and our momentum with two-wheeler and commercial vehicle OEMs provide a strong foundation for future growth.”

Based on our year-to-date performance and outlook for the fourth quarter, Visteon is updating its full-year 2024 guidance and anticipates sales in the range of $3.85 – $3.90 billion, adjusted EBITDA in the range of $465 – $480 million, and adjusted free cash flow in the range of $165 – $185 million.

About Visteon

Visteon is advancing mobility through innovative technology solutions that enable a software-defined and electric future. With next-generation digital cockpit and electrification products, Visteon leverages the strength and agility of its global network with a local footprint to deliver a cleaner, safer and more connected vehicle experience. Headquartered in Van Buren Township, Michigan, Visteon operates in 17 countries worldwide, recorded approximately $3.95 billion in annual sales and booked $7.2 billion of new business in 2023. Learn more at investors.visteon.com/.

Conference Call and Presentation
Today, Thursday, October 24, at 9 a.m. ET, the company will host a conference call for the investment community to discuss the quarter’s results and other related items. The conference call is available to the general public via a live audio webcast.

The dial-in numbers to participate in the call are:

U.S./Canada: 1-888-330-2508
Outside U.S./Canada: 1-240-789-2735
Conference ID: 8897485

(Call approximately 10 minutes before the start of the conference.)

The conference call and live audio webcast, related presentation materials and other supplemental information will be accessible in the Investors section of Visteon’s website.

Use of Non-GAAP Financial Information

Because not all companies use identical calculations, adjusted EBITDA, adjusted net income, adjusted EPS, free cash flow and adjusted free cash flow used throughout this press release may not be comparable to other similarly titled measures of other companies.

In order to provide the forward-looking non-GAAP financial measures for full-year 2024, the company provides reconciliations to the most directly comparable GAAP financial measures on the subsequent slides. The provision of these comparable GAAP financial measures is not intended to indicate that the company is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the company at the date of this press release and the adjustments that management can reasonably predict.

Forward-looking Information

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “will,” “may,” “designed to,” “outlook,” “believes,” “should,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “forecasts” and similar expressions identify certain of these forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various factors, risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, including, but not limited to:

continued and future impacts of the geopolitical conflicts and related supply chain disruptions, including but not limited to the conflicts in the Middle East, Russia and East Asia and the possible imposition of sanctions;
significant or prolonged shortage of critical components from our suppliers, including but not limited to semiconductors, and particularly those who are our sole or primary sources;
failure of the Company’s joint venture partners to comply with contractual obligations or to exert influence or pressure in China;
conditions within the automotive industry, including (i) the automotive vehicle production volumes and schedules of our customers, (ii) the financial condition of our customers and the effects of any restructuring or reorganization plans that may be undertaken by our customers, including work stoppages at our customers, and (iii) possible disruptions in the supply of commodities to us or our customers due to financial distress, work stoppages, natural disasters or civil unrest;
our ability to satisfy future capital and liquidity requirements; including our ability to access the credit and capital markets at the times and in the amounts needed and on terms acceptable to us; our ability to comply with financial and other covenants in our credit agreements; and the continuation of acceptable supplier payment terms;
our ability to access funds generated by foreign subsidiaries and joint ventures on a timely and cost-effective basis;
general economic conditions, including changes in interest rates and fuel prices; the timing and expenses related to internal restructurings, employee reductions, acquisitions or dispositions and the effect of pension and other post-employment benefit obligations;
disruptions in information technology systems including, but not limited to, system failure, cyber-attack, malicious computer software (malware including ransomware), unauthorized physical or electronic access, or other natural or man-made incidents or disasters;
increases in raw material and energy costs and our ability to offset or recover these costs; increases in our warranty, product liability and recall costs or the outcome of legal or regulatory proceedings to which we are or may become a party;
changes in laws, regulations, policies or other activities of governments, agencies and similar organizations, domestic and foreign, that may tax or otherwise increase the cost of, or otherwise affect, the manufacture, licensing, distribution, sale, ownership or use of our products or assets; and
those factors identified in our filings with the SEC (including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as updated by our subsequent filings with the Securities and Exchange Commission).

Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date of this release, and which we assume no obligation to update. The financial results presented herein are preliminary and unaudited; final financial results will be included in the company’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024. New business wins and re-wins do not represent firm orders or firm commitments from customers, but are based on various assumptions, including the timing and duration of product launches, vehicle production levels, customer price reductions and currency exchange rates.

Follow Visteon:

https://www.linkedin.com/company/visteon
https://twitter.com/visteon
https://www.facebook.com/VisteonCorporation
https://www.youtube.com/user/Visteon
https://www.instagram.com/visteon/
https://mp.weixin.qq.com/?lang=en_US
https://m.weibo.cn/u/6605315328
http://i.youku.com/u/UNDgyMjA1NjUxNg==?spm=a2h0k.8191407.0.0

VISTEON CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In millions except per share amounts) (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023

Net sales	$	980		$	1,014		$	2,927		$	2,964
Cost of sales		(849	)		(871	)		(2,530	)		(2,607	)
Gross margin		131			143			397			357
Selling, general and administrative expenses		(51	)		(52	)		(152	)		(156	)
Restructuring, net		(28	)		—			(31	)		(2	)
Interest expense, net		—			(1	)		—			(7	)
Equity in net income (loss) of non-consolidated affiliates		(3	)		(1	)		(7	)		(8	)
Other income (expense), net		2			3			7			(4	)
Income (loss) before income taxes		51			92			214			180
Provision for income taxes		(11	)		(21	)		(55	)		(48	)
Net income (loss)		40			71			159			132
Less: Net (income) loss attributable to non-controlling interests		(1	)		(5	)		(7	)		(12	)
Net income (loss) attributable to Visteon Corporation	$	39		$	66		$	152		$	120

Comprehensive income (loss)	$	69		$	58		$	153		$	114
Less: Comprehensive (income) loss attributable to non-controlling interests		(7	)		(4	)		(10	)		(6	)
Comprehensive income (loss) attributable to Visteon Corporation	$	62		$	54		$	143		$	108

Basic earnings (loss) per share attributable to Visteon Corporation	$	1.41		$	2.35		$	5.51		$	4.26

Diluted earnings (loss) per share attributable to Visteon Corporation	$	1.40		$	2.32		$	5.45		$	4.20

Average shares outstanding (in millions)
Basic		27.6			28.1			27.6			28.2
Diluted		27.9			28.5			27.9			28.6

VISTEON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions)

	*(Unaudited)*
	September 30,			December 31,
		2024			2023
ASSETS
Cash and equivalents	$	550		$	515
Restricted cash		3			3
Accounts receivable, net		719			666
Inventories, net		321			298
Other current assets		109			134
Total current assets		1,702			1,616

Property and equipment, net		438			418
Intangible assets, net		157			90
Right-of-use assets		103			109
Investments in non-consolidated affiliates		27			35
Deferred tax assets		387			384
Other non-current assets		79			75
Total assets	$	2,893		$	2,727

LIABILITIES AND EQUITY
Short-term debt	$	18		$	18
Accounts payable		547			551
Accrued employee liabilities		98			99
Current lease liability		29			30
Other current liabilities		245			233
Total current liabilities		937			931

Long-term debt, net		306			318
Employee benefits		143			160
Non-current lease liability		79			79
Deferred tax liabilities		46			31
Other non-current liabilities		109			85

Stockholders’ equity:
Common stock		1			1
Additional paid-in capital		1,369			1,356
Retained earnings		2,426			2,274
Accumulated other comprehensive loss		(263	)		(254	)
Treasury stock		(2,348	)		(2,339	)
Total Visteon Corporation stockholders’ equity		1,185			1,038
Non-controlling interests		88			85
Total equity		1,273			1,123
Total liabilities and equity	$	2,893		$	2,727

VISTEON CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
OPERATING
Net income (loss)	$	40		$	71		$	159		$	132
Adjustments to reconcile net income (loss) to net cash provided from (used by) operating activities:
Depreciation and amortization		25			24			71			79
Non-cash stock-based compensation		10			9			31			26
Equity in net loss (income) of non-consolidated affiliates, net of dividends remitted		3			1			7			8
Tax valuation allowance benefit		(7	)		—			(7	)		—
Other non-cash items		3			1			10			(3	)
Changes in assets and liabilities:
Accounts receivable		(6	)		(12	)		(55	)		(19	)
Inventories		—			6			(23	)		23
Accounts payable		(5	)		35			3			(54	)
Other assets and other liabilities		35			(8	)		28			(23	)
Net cash provided from (used by) operating activities		98			127			224			169
INVESTING
Capital expenditures, including intangibles		(28	)		(31	)		(96	)		(82	)
Acquisition of business, net of cash acquired		(48	)		—			(48	)		—
Contributions to equity method investments		(1	)		(1	)		(1	)		(1	)
Loan provided to non-consolidated affiliate		—			—			(5	)		—
Other		1			1			2			3
Net cash used by investing activities		(76	)		(31	)		(148	)		(80	)
FINANCING
Dividends to non-controlling interests		—			(12	)		—			(27	)
Short-term debt, net		—			(3	)		—			—
Repurchase of common stock		—			(46	)		(20	)		(76	)
Stock based compensation tax withholding payments		—			(1	)		(7	)		(16	)
Proceeds from the exercise of stock options		—			4			—			8
Principal repayment of term debt facility		(4	)		(4	)		(13	)		(8	)
Net cash used by financing activities		(4	)		(62	)		(40	)		(119	)
Effect of exchange rate changes on cash		27			(8	)		(1	)		(8	)
Net decrease in cash, equivalents, and restricted cash		45			26			35			(38	)
Cash, equivalents, and restricted cash at beginning of the period		508			459			518			523
Cash, equivalents, and restricted cash at end of the period	$	553		$	485		$	553		$	485

VISTEON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In millions except per share amounts)
(Unaudited)

Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Company’s performance that management believes is useful to investors because the excluded items may vary significantly in timing or amounts and/or may obscure trends useful in evaluating and comparing the Company’s operating activities across reporting periods. The Company defines adjusted EBITDA as net income attributable to the Company adjusted to eliminate the impact of depreciation and amortization, provision for (benefit from) income taxes, non-cash stock-based compensation expense, net interest expense, net income attributable to non-controlling interests, net restructuring expense, equity in net (income)/loss of non-consolidated affiliates, gain on non-consolidated affiliate transactions, and other gains and losses not reflective of the Company’s ongoing operations. Because not all companies use identical calculations, this presentation of adjusted EBITDA may not be comparable to similarly titled measures of other companies.

	Three Months Ended				Nine Months Ended				Estimated
	September 30,				September 30,				Full Year
Visteon:		2024		2023		2024		2023		2024
Net income attributable to Visteon Corporation	$	39	$	66	$	152	$	120		202
Depreciation and amortization		25		24		71		79		96
Provision for income taxes		11		21		55		48		75
Non-cash, stock-based compensation expense		10		9		31		26		42
Restructuring, net		28		—		31		2		34
Interest expense, net		—		1		—		7		—
Net income attributable to non-controlling interests		1		5		7		12		10
Equity in net loss (income) of non-consolidated affiliates		3		1		7		8		9
Other		2		1		3		15		5
Adjusted EBITDA	$	119	$	128	$	357	$	317	$	473²

Adjusted EBITDA is not a recognized term under U.S. GAAP and does not purport to be a substitute for net income as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. Adjusted EBITDA has limitations as an analytical tool and is not intended to be a measure of cash flow available for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. In addition, the Company uses adjusted EBITDA (i) as a factor in incentive compensation decisions, (ii) to evaluate the effectiveness of the Company’s business strategies, and (iii) because the Company’s credit agreements use similar measures for compliance with certain covenants.

VISTEON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In millions except per share amounts)
(Unaudited)

Free Cash Flow and Adjusted Free Cash Flow: Free cash flow and adjusted free cash flow are presented as supplemental measures of the Company’s liquidity that management believes are useful to investors in analyzing the Company’s ability to service and repay its debt. The Company defines free cash flow as cash flow provided from operating activities less capital expenditures, including intangibles. The Company defines adjusted free cash flow as cash flow provided from operating activities less capital expenditures, including intangibles as further adjusted for restructuring related payments. Because not all companies use identical calculations, this presentation of free cash flow and adjusted free cash flow may not be comparable to other similarly titled measures of other companies.

	Three Months Ended						Nine Months Ended						Estimated
	September 30,						September 30,						Full Year
Visteon:		2024			2023			2024			2023			2024
Cash provided from (used by) operating activities	$	98		$	127		$	224		$	169			305
Capital expenditures, including intangibles		(28	)		(31	)		(96	)		(82	)		(145	)
Free cash flow	$	70		$	96		$	128		$	87		$	160
Restructuring related payments		3			2			7			6			15
Adjusted free cash flow	$	73		$	98		$	135		$	93		$	175³

Free cash flow and adjusted free cash flow are not recognized terms under U.S. GAAP and do not purport to be a substitute for cash flows from operating activities as a measure of liquidity. Free cash flow and adjusted free cash flow have limitations as analytical tools as they do not reflect cash used to service debt and do not reflect funds available for investment or other discretionary uses. In addition, the Company uses free cash flow and adjusted free cash flow (i) as factors in incentive compensation decisions and (ii) for planning and forecasting future periods.

VISTEON CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In millions except per share amounts)
(Unaudited)

Adjusted Net Income and Adjusted Earnings Per Share: Adjusted net income and adjusted earnings per share are presented as supplemental measures that management believes are useful to investors in analyzing the Company’s profitability, providing comparability between periods by excluding certain items that may not be indicative of recurring business operating results. The Company believes management and investors benefit from referring to these supplemental measures in assessing company performance and when planning, forecasting and analyzing future periods. The Company defines adjusted net income as net income attributable to Visteon adjusted to eliminate the impact of restructuring expense, loss on divestiture, gain on non-consolidated affiliate transactions, other gains and losses not reflective of the Company’s ongoing operations and related tax effects. The Company defines adjusted earnings per share as adjusted net income divided by diluted shares. Because not all companies use identical calculations, this presentation of adjusted net income and adjusted earnings per share may not be comparable to other similarly titled measures of other companies.

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
		2024			2023		2024			2023
Net income attributable to Visteon	$	39		$	66	$	152		$	120

Diluted earnings per share:
Net income attributable to Visteon	$	39		$	66	$	152		$	120
Average shares outstanding, diluted		27.9			28.5		27.9			28.6
Diluted earnings per share	$	1.40		$	2.32	$	5.45		$	4.20

Adjusted net income and adjusted earnings per share:
Net income attributable to Visteon	$	39		$	66	$	152		$	120
Restructuring, net		28			—		31			2
Other		2			1		3			15
Tax impacts of adjustments		(6	)		—		(7	)		—
Adjusted net income	$	63		$	67	$	179		$	137
Average shares outstanding, diluted		27.9			28.5		27.9			28.6
Adjusted earnings per share	$	2.26		$	2.35	$	6.42		$	4.79

Adjusted net income and adjusted earnings per share are not recognized terms under U.S. GAAP and do not purport to be a substitute for profitability. Adjusted net income and adjusted earnings per share have limitations as analytical tools as they do not consider certain restructuring and transaction-related payments and/or expenses. In addition, the Company uses adjusted net income and adjusted earnings per share for internal planning and forecasting purposes.

¹ Excludes Y/Y impact of currency fluctuations
² Based on mid-point of the range of the Company’s financial guidance
³ Based on mid-point of the range of the Company’s financial guidance

The MIL Network –

January 25, 2025

MIL-OSI: Bread Financial Provides Performance Update for September 2024

Source: GlobeNewswire (MIL-OSI)

COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.^® (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated.

	For the month ended September 30, 2024			For the three months ended September 30, 2024
	(dollars in millions)
End-of-period credit card and other loans	$	17,933		$	17,933
Average credit card and other loans ⁽¹⁾	$	17,955		$	17,766
Year-over-year change in average credit card and other loans ⁽¹⁾		3	%		1	%
Net principal losses	$	110		$	347
Net loss rate ⁽¹⁾		7.4	%		7.8	%

	As of September 30, 2024			As of September 30, 2023
	(dollars in millions)
30 days + delinquencies – principal	$	1,062		$	1,038
Period ended credit card and other loans – principal	$	16,476		$	16,585
Delinquency rate		6.4	%		6.3	%

__________________________________________________________________________

⁽¹⁾

Beginning in January 2024, we revised the calculation of Average credit card and other loans to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, Average credit card and other loans represent the average balance of the loans at the beginning and end of each month, averaged over the periods indicated. Consequentially, the calculations for Year-over-year change in average credit card and other loans and Net loss rate differ for the periods presented.

About Bread Financial^®
Bread Financial ^® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay ^® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback ^® American Express ^® Credit Card, Bread Rewards™ American Express ^® Credit Card and Bread Savings ^® products.   
    
Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.

Forward-Looking Statements
This release contains 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. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.

We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, higher interest rates, labor market conditions, recessionary pressures or a concern over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behavior; global political and public health events and conditions, including ongoing wars and military conflicts and natural disasters; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax or other liability or adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries and subsequent litigation or other disputes. In addition, the Consumer Financial Protection Bureau (CFPB) has issued a final rule that, absent a successful legal challenge, will place significant limits on credit card late fees, which would have a significant impact on our business and results of operations for at least the short term and, depending on the effectiveness of the mitigating actions that we have taken or may in the future take in anticipation of, or in response to, the final rule, may potentially adversely impact us over the long term; we cannot provide any assurance as to the effective date of the rule, the result of any pending or future challenges or other litigation relating to the rule, or our ability to mitigate or offset the impact of the rule on our business and results of operations. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

Contacts
Brian Vereb – Investor Relations
Brian.Vereb@BreadFinancial.com

Susan Haugen – Investor Relations
Susan.Haugen@BreadFinancial.com

Rachel Stultz – Media
Rachel.Stultz@BreadFinancial.com

The MIL Network –

January 25, 2025

MIL-OSI: Fidelity D & D Bancorp, Inc.: Increases for Ten Consecutive Years with 5% Rise in Fourth Quarter 2024 Dividend

Source: GlobeNewswire (MIL-OSI)

DUNMORE, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC), parent company of The Fidelity Deposit and Discount Bank, announce their declaration of the Company’s fourth quarter dividend of $0.40 per share, a 5% increase above the prior quarterly cash dividend of $0.38 per share.

“On behalf of the Board of Directors and all Fidelity Bankers, we are proud to announce our fourth quarter cash dividend increase, marking ten consecutive years of increasing and a more than doubling of the dividend paid over the period. This milestone reflects ongoing targeted reinvestment from the creation of sustainable value to our shareholders and the communities we serve,” shared Daniel J. Santaniello, President & Chief Executive Officer. “As we look toward future growth, we remain deeply grateful for the continued support of our dedicated Bankers, valued clients, loyal shareholders, and the communities we serve.”

The cash dividend of $0.40 per share is payable December 10, 2024 to shareholders of record at the close of business on November 15, 2024.

Fidelity D & D Bancorp, Inc. serves Lackawanna, Luzerne and Northampton Counties through The Fidelity Deposit and Discount Bank’s 21 full-service community banking offices, along with the Fidelity Bank Wealth Management Minersville Office in Schuylkill County. Fidelity Bank provides a digital and virtual experience via digital services and digital account opening through online banking and mobile app.

For more information visit our investor relations web site through www.bankatfidelity.com.

This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. These factors include the possibility that increased demand or prices for the company’s financial services and products may not occur, changing economic, interest rate and competitive conditions, technological developments and other risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission.

Contacts:
Daniel J. Santaniello President and Chief Executive Officer 570-504-8035	Salvatore R. DeFrancesco, Jr. Treasurer and Chief Financial Officer 570-504-8000

The MIL Network –

January 25, 2025

MIL-OSI: ConnectOne Bancorp, Inc. Reports Third Quarter 2024 Results; Declares Common and Preferred Dividends

Source: GlobeNewswire (MIL-OSI)

ENGLEWOOD CLIFFS, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $15.7 million for the third quarter of 2024 compared with $17.5 million for the second quarter of 2024 and $19.9 million for the third quarter of 2023. Included in net income available to common stockholders’ was merger and restructuring pre-tax expenses of $0.7 million for the third quarter of 2024, while there were no such charges during the second quarter of 2024 and the third quarter of 2023. Diluted earnings per share were $0.41 for the third quarter of 2024 compared with $0.46 for the second quarter of 2024 and $0.51 for the third quarter of 2023. Return on average assets was 0.70%, 0.79% and 0.88% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Return on average tangible common equity was 6.93%, 7.98% and 9.11% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

Operating net income available to common stockholders, which excludes non-operating items, was $16.1 million for the third quarter of 2024, $17.9 million for the second quarter of 2024 and $20.4 million for the third quarter of 2023. Operating diluted earnings per share were $0.42 for the third quarter of 2024, $0.47 for the second quarter of 2024 and $0.52 for the third quarter of 2023. Operating return on average assets was 0.72%, 0.80% and 0.90% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Operating return on average tangible common equity was 7.03%, 8.05% and 9.21% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.

The decrease in net income available to common stockholders and diluted earnings per share from the second quarter of 2024 was primarily due to a $1.3 million increase in the provision for credit losses, a $1.0 million increase in noninterest expenses, and a $0.6 million decrease in net interest income, partially offset by a $0.7 million decrease in income tax expenses and a $0.3 million increase in noninterest income. The decrease in net income available to common stockholders from the third quarter of 2023 was primarily due to a $2.9 million increase in noninterest expenses, a $2.3 million increase in the provision for credit losses, and a $1.5 million decrease in net interest income, partially offset by a $1.2 million increase in noninterest income and a $1.2 million decrease in income tax expense. The increases in noninterest expenses when compared to the prior sequential quarter and the prior year quarter included the impact of the aforementioned $0.7 million of merger and restructuring expense that occurred during the third quarter of 2024.

“In September, we announced a planned merger with The First of Long Island Corporation, a transaction that we believe will create a truly premier New York-metro community bank,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “Our integration planning is off to a good start, the initial regulatory process is underway, and we’re excited about creating a significantly enhanced platform for continued growth across all markets and communities we serve. Further, the economic environment and interest rate outlook confirms our belief that this combination will deliver meaningful benefits to our communities, clients and shareholders. We look forward to updating you on our progress in the months and quarters ahead.”

Mr. Sorrentino added, “Meanwhile, we remain focused and committed to our client-first culture and relationship banking model. During the first nine months of the year, we have actively reduced non-relationship loans from our balance sheet in an effort to improve our loan-to-deposit ratio, diversify our loan mix, and capitalize on the improving interest rate environment.”

“The net interest margin, for the third quarter, on a core basis was flat; however, as a result of the Fed’s 50 basis-point cut in late September, we ended the quarter with a so-called spot margin upwards of 10 basis points wider. And with our liability-sensitive balance sheet, we are positioned to drive increased profitability through the fourth quarter, into 2025 and post-merger completion.”

Dividend Declarations

The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on December 2, 2024, to common stockholders of record on November 15, 2024. A dividend of $0.328125 per depositary share, representing a 1/40^th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on December 2, 2024 to holders of record on November 15, 2024.

Operating Results

Fully taxable equivalent net interest income for the third quarter of 2024 was $61.7 million, a decrease of $0.5 million, or 0.9%, from the second quarter of 2024, due to a five basis-point contraction of the net interest margin to 2.67% from 2.72%. During the third quarter of 2024, average loans decreased $89.4 million, or 1.1% when compared to the second quarter of 2024. The contraction of the net interest margin was primarily due to an increase in average cash balances during the third quarter of 2024, as well as a decrease in loan prepayment fees and nonaccrual loan interest recapture. The net interest margin is expected to increase by 10 basis points or more in the fourth quarter of 2024 reflecting the Fed’s actual and expected rate cuts along with deployment of excess cash-on-hand.

Fully taxable equivalent net interest income for the third quarter of 2024 decreased by $1.5 million, or 2.4%, from the third quarter of 2023. The decrease from the third quarter of 2023 resulted primarily from a nine basis-point contraction in the net interest margin to 2.67% from 2.76%. During the third quarter of 2024, average loans decreased by $45.9 million, or 0.6% when compared to the third quarter of 2023. The contraction of the net interest margin for the third quarter of 2024 when compared to the third quarter of 2023 was primarily attributable to a 40 basis-point increase in the average cost of deposits, including noninterest-bearing deposits, partially offset by a 24 basis-point increase in the loan portfolio yield.

Noninterest income was $4.7 million in the third quarter of 2024, $4.4 million in the second quarter of 2024 and $3.6 million in the third quarter of 2023. The $0.3 million increase in noninterest income for the third quarter of 2024 when compared to the second quarter of 2024 was due to a $0.6 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits and a $0.2 million increase in other deposit, loan and other income, partially offset a $0.9 million decrease in net gains on sale of loans held-for-sale. The $1.2 million increase in noninterest income for the third quarter of 2024 when compared to the third quarter of 2023 was due to a $0.7 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits received, a $0.2 million increase in BOLI income, a $0.1 million increase in BoeFly income, and a $0.1 million increase in other deposit, loan and other income, partially offset by a decrease in net gains on sale of loans held-for-sale of $0.3 million.

Noninterest expenses were $38.6 million for the third quarter of 2024, $37.6 million for the second quarter of 2024 and $35.8 million for the third quarter of 2023. The $1.0 million increase in noninterest expenses for the third quarter of 2024 when compared to the second quarter of 2024 was primarily due to a $0.7 million increase in merger and restructuring expenses, a $0.3 million increase in information and technology communications, a $0.2 million increase in salaries and employee benefits and a $0.2 million increase in professional and consulting fees, partially offset by decreases in other expenses of $0.4 million. The $2.9 million increase in noninterest expenses for the third quarter of 2024 when compared to the third quarter of 2023 was primarily due to a $1.0 million increase in information technology and communications, a $0.7 million increase in merger and restructuring expenses, a $0.7 million increase in salaries and employee benefits, a $0.3 million increase in professional and consulting, a $0.2 million increase in occupancy and equipment and a $0.1 million increase in marketing and advertising, partially offset by a decrease in other expenses of $0.1 million. The increases in information technology and communications when compared to the second quarter of 2024 and the third quarter of 2023 are attributable to additional investments in technology, equipment, and software. The increase in salaries and employee benefits when compared to the second quarter of 2024 was primarily attributable to increases in incentive-based compensation accruals, partially offset by decreases in payroll tax expenses and other employee benefit expenses. The increase in salaries and employee benefits when compared to the third quarter of 2023 was primarily attributable to increases in incentive-based compensation accruals, and an increase in other employee benefit expenses, partially offset by decreases in stock-compensation expenses.

Income tax expense was $6.0 million for the third quarter of 2024, $6.7 million for the second quarter of 2024 and $7.2 million for the third quarter of 2023. The effective tax rates for the second quarter of 2024, first quarter of 2024 and second quarter of 2023 were 26.0%, 26.0% and 25.2%, respectively.

Asset Quality

The provision for credit losses was $3.8 million for the third quarter of 2024, $2.5 million for the second quarter of 2024 and $1.5 million for the third quarter of 2023. The increase in the current quarter’s provision for credit losses from both the second quarter of 2024 and the third quarter of 2023 was primarily due to increases in specific reserves, partially offset by decreases in general reserves.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), was $51.3 million as of September 30, 2024, $52.5 million as of December 31, 2023 and $56.1 million as of September 30, 2023. Nonperforming assets as a percentage of total assets was 0.53% as of September 30, 2024, 0.53% as of December 31, 2023 and 0.58% as of September 30, 2023. The ratio of nonaccrual loans to loans receivable was 0.63%, 0.63% and 0.69%, as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The annualized net loan charge-offs ratio was 0.17% for the third quarter of 2024, 0.43% for the fourth quarter of 2023 and 0.12% for the third quarter of 2023. The allowance for credit losses represented 1.02%, 0.98%, and 1.08% of loans receivable as of September 30, 2024, December 31, 2023, and September 30, 2023, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 160.8% as of September 30, 2024, 156.1% as of December 31, 2023 and 157.4% as of September 30, 2023. Criticized and classified loans as a percentage of total loans was 2.23% as of September 30, 2024, up from 1.35% as of December 31, 2023 and up from 1.44% as of September 30, 2023. The increase is primarily due to a loan modification of one CRE relationship that was moved to special mention. Loans delinquent 30 to 89 days was 0.16% of loans as of September 30, 2024, down from 0.30% as of December 31, 2023 and up from 0.04% as of September 30, 2023.

Selected Balance Sheet Items

The Company’s total assets were $9.639 billion as of September 30, 2024, compared to $9.856 billion as of December 31, 2023. Loans receivable were $8.112 billion as of September 30, 2024 and $8.345 billion as of December 31, 2023. Total deposits were $7.524 billion as of September 30, 2024 and $7.536 billion as of December 31, 2023.

The Company’s total stockholders’ equity was $1.239 billion as of September 30, 2024 and $1.217 billion as of December 31, 2023. The increase in total stockholders’ equity was primarily attributable to an increase in retained earnings of $28.5 million, partially offset by an increase in accumulated other comprehensive losses of approximately $1.6 million and increases in treasury stock of approximately $5.8 million. As of September 30, 2024, the Company’s tangible common equity ratio and tangible book value per share were 9.71% and $23.85, respectively, compared to 9.25% and $23.14, respectively, as of December 31, 2023. Total goodwill and other intangible assets were $213.3 million as of September 30, 2024, and $214.2 million as of December 31, 2023.

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

Third Quarter 2024 Results Conference Call

Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 24, 2024 to review the Company’s financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 5504182. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the “Investor Relations” link on the Company’s website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, October 24, 2024 and ending on Thursday, October 31, 2024 by dialing 1 (609) 800-9909, access code 5504182. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

About ConnectOne Bancorp, Inc.

ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank’s fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol “CNOB,” and information about ConnectOne may be found at https://www.connectonebank.com.

This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies, and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company’s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Investor Contact:
William S. Burns
Senior Executive Vice President & CFO
201.816.4474: bburns@cnob.com

Media Contact:
Shannan Weeks
MikeWorldWide
732.299.7890: sweeks@mww.com

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(in thousands)

	September 30,			December 31,			September 30,
		2024			2023			2023
	(unaudited)						(unaudited)
ASSETS
Cash and due from banks	$	61,093		$	61,421		$	56,170
Interest-bearing deposits with banks		186,155			181,293			197,128
Cash and cash equivalents		247,248			242,714			253,298

Investment securities		646,713			617,162			581,867
Equity securities		20,399			18,564			17,677

Loans receivable		8,111,976			8,345,145			8,181,109
Less: Allowance for credit losses – loans		82,494			81,974			88,230
Net loans receivable		8,029,482			8,263,171			8,092,879

Investment in restricted stock, at cost		42,772			51,457			49,387
Bank premises and equipment, net		29,068			30,779			28,432
Accrued interest receivable		46,951			49,108			46,795
Bank owned life insurance		242,016			237,644			236,009
Right of use operating lease assets		14,211			12,007			11,229
Goodwill		208,372			208,372			208,372
Core deposit intangibles		4,935			5,874			6,222
Other assets		107,436			118,751			146,718
Total assets	$	9,639,603		$	9,855,603		$	9,678,885

LIABILITIES
Deposits:
Noninterest-bearing	$	1,262,568		$	1,259,364		$	1,224,125
Interest-bearing		6,261,537			6,276,838			6,214,370
Total deposits		7,524,105			7,536,202			7,438,495
Borrowings		742,133			933,579			887,590
Subordinated debentures, net		79,818			79,439			79,313
Operating lease liabilities		15,252			13,171			12,424
Other liabilities		38,799			76,592			72,909
Total liabilities		8,400,107			8,638,983			8,490,731

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY
Preferred stock		110,927			110,927			110,927
Common stock		586,946			586,946			586,946
Additional paid-in capital		34,995			33,182			32,027
Retained earnings		619,497			590,970			579,776
Treasury stock		(76,116	)		(70,296	)		(68,108	)
Accumulated other comprehensive loss		(36,753	)		(35,109	)		(53,414	)
Total stockholders’ equity		1,239,496			1,216,620			1,188,154
Total liabilities and stockholders’ equity	$	9,639,603		$	9,855,603		$	9,678,885

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except for per share data)

	Three Months Ended					Nine Months Ended
	09/30/24		09/30/23			09/30/24		09/30/23
Interest income
Interest and fees on loans	$	119,280	$	115,405		$	359,513	$	333,356
Interest and dividends on investment securities:
Taxable		4,740		4,128			13,757		12,386
Tax-exempt		1,119		1,136			3,394		3,475
Dividends		1,048		907			3,390		2,750
Interest on federal funds sold and other short-term investments		4,055		2,110			9,802		9,141
Total interest income		130,242		123,686			389,856		361,108
Interest expense
Deposits		63,785		56,043			186,278		146,844
Borrowings		5,570		5,286			20,952		20,980
Total interest expense		69,355		61,329			207,230		167,824

Net interest income		60,887		62,357			182,626		193,284
Provision for credit losses		3,800		1,500			10,300		5,500
Net interest income after provision for credit losses		57,087		60,857			172,326		187,784

Noninterest income
Deposit, loan and other income		1,817		1,605			5,063		4,553
Income on bank owned life insurance		2,145		1,597			5,486		4,681
Net gains on sale of loans held-for-sale		343		633			2,126		1,232
Net losses (gains) on equity securities		432		(273	)		309		(674	)
Total noninterest income		4,737		3,562			12,984		9,792

Noninterest expenses
Salaries and employee benefits		22,957		22,251			67,809		66,213
Occupancy and equipment		2,889		2,738			8,797		8,176
FDIC insurance		1,800		1,800			5,400		4,465
Professional and consulting		2,147		1,834			5,998		5,960
Marketing and advertising		635		554			1,925		1,642
Information technology and communications		4,464		3,487			13,051		10,192
Merger and restructuring		742		–			742		–
Amortization of core deposit intangibles		297		347			939		1,090
Other expenses		2,710		2,773			8,639		8,366
Total noninterest expenses		38,641		35,784			113,300		106,104

Income before income tax expense		23,183		28,635			72,010		91,472
Income tax expense		6,022		7,228			18,588		23,742
Net income		17,161		21,407			53,422		67,730
Preferred dividends		1,509		1,509			4,527		4,527
Net income available to common stockholders	$	15,652	$	19,898		$	48,895	$	63,203

Earnings per common share:
Basic	$	0.41	$	0.51		$	1.27	$	1.62
Diluted		0.41		0.51			1.27		1.61

ConnectOne’s management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.

CONNECTONE BANCORP, INC.
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES

	As of
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
Selected Financial Data	(dollars in thousands)
Total assets	$	9,639,603		$	9,723,731		$	9,853,964		$	9,855,603		$	9,678,885
Loans receivable:
Commercial	$	1,505,743		$	1,491,079		$	1,561,063		$	1,564,768		$	1,464,479
Commercial real estate		3,261,160			3,274,941			3,333,488			3,342,603			3,288,704
Multifamily		2,482,258			2,499,581			2,507,893			2,566,904			2,559,927
Commercial construction		616,087			639,168			646,593			620,496			622,748
Residential		250,249			256,786			254,214			256,041			251,416
Consumer		835			945			850			1,029			936
Gross loans		8,116,332			8,162,500			8,304,101			8,351,841			8,188,210
Net deferred loan fees		(4,356	)		(4,597	)		(6,144	)		(6,696	)		(7,101	)
Loans receivable		8,111,976			8,157,903			8,297,957			8,345,145			8,181,109
Loans held-for-sale		–			435			–			–			–
Total loans	$	8,111,976		$	8,158,338		$	8,297,957		$	8,345,145		$	8,181,109

Investment and equity securities	$	667,112		$	640,322		$	638,854		$	635,726		$	599,544
Goodwill and other intangible assets		213,307			213,604			213,925			214,246			214,594
Deposits:
Noninterest-bearing demand	$	1,262,568		$	1,268,882		$	1,290,523		$	1,259,364		$	1,224,125
Time deposits		2,614,187			2,593,165			2,623,391			2,531,371			2,522,210
Other interest-bearing deposits		3,647,350			3,713,967			3,674,740			3,745,467			3,692,160
Total deposits	$	7,524,105		$	7,576,014		$	7,588,654		$	7,536,202		$	7,438,495

Borrowings	$	742,133		$	756,144		$	877,568		$	933,579		$	887,590
Subordinated debentures (net of debt issuance costs)		79,818			79,692			79,566			79,439			79,313
Total stockholders’ equity		1,239,496			1,224,227			1,216,609			1,216,620			1,188,154

Quarterly Average Balances
Total assets	$	9,742,853		$	9,745,853		$	9,860,753		$	9,690,746		$	9,625,625
Loans receivable:
Commercial	$	1,485,777		$	1,517,446		$	1,552,360		$	1,510,634		$	1,471,006
Commercial real estate (including multifamily)		5,752,467			5,789,498			5,890,853			5,874,854			5,821,794
Commercial construction		628,740			652,227			637,993			630,468			625,640
Residential		252,975			254,284			252,965			253,200			253,114
Consumer		7,887			5,155			5,091			6,006			4,972
Gross loans		8,127,846			8,218,610			8,339,262			8,275,162			8,176,526
Net deferred loan fees		(4,513	)		(5,954	)		(6,533	)		(6,894	)		(7,387	)
Loans receivable		8,123,333			8,212,656			8,332,729			8,268,268			8,169,139
Loans held-for-sale		83			169			99			31			171
Total loans	$	8,123,416		$	8,212,825		$	8,332,828		$	8,268,299		$	8,169,310

Investment and equity securities	$	650,897		$	637,551		$	633,270		$	602,287		$	628,429
Goodwill and other intangible assets		213,502			213,813			214,133			214,472			214,822
Deposits:
Noninterest-bearing demand	$	1,259,912		$	1,256,251		$	1,254,201		$	1,248,132		$	1,275,325
Time deposits		2,625,329			2,587,706			2,567,767			2,495,091			2,606,122
Other interest-bearing deposits		3,747,427			3,721,167			3,696,374			3,747,093			3,723,561
Total deposits	$	7,632,668		$	7,565,124		$	7,518,342		$	7,490,316		$	7,605,008

Borrowings	$	717,586		$	787,256		$	947,003		$	823,123		$	651,112
Subordinated debentures (net of debt issuance costs)		79,735			79,609			79,483			79,356			79,230
Total stockholders’ equity		1,234,724			1,220,621			1,220,818			1,198,389			1,202,647

	Three Months Ended
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
	(dollars in thousands, except for per share data)
Net interest income	$	60,887		$	61,439		$	60,300		$	61,822		$	62,357
Provision for credit losses		3,800			2,500			4,000			2,700			1,500
Net interest income after provision for credit losses		57,087			58,939			56,300			59,122			60,857
Noninterest income
Deposit, loan and other income		1,817			1,654			1,592			1,545			1,605
Income on bank owned life insurance		2,145			1,677			1,664			1,635			1,597
Net gains on sale of loans held-for-sale		343			1,277			506			472			633
Net gains (losses) on equity securities		432			(209	)		86			557			(273	)
Total noninterest income		4,737			4,399			3,848			4,209			3,562
Noninterest expenses
Salaries and employee benefits		22,957			22,721			22,131			22,010			22,251
Occupancy and equipment		2,889			2,899			3,009			2,708			2,738
FDIC insurance		1,800			1,800			1,800			3,900			1,800
Professional and consulting		2,147			1,923			1,928			1,587			1,834
Marketing and advertising		635			613			677			323			554
Information technology and communications		4,464			4,198			4,389			4,148			3,487
Merger and restructuring		742			–			–			–			–
Amortization of core deposit intangible		297			321			321			348			347
Other expenses		2,710			3,119			2,810			2,821			2,773
Total noninterest expenses		38,641			37,594			37,065			37,845			35,784

Income before income tax expense		23,183			25,744			23,083			25,486			28,635
Income tax expense		6,022			6,688			5,878			6,213			7,228
Net income		17,161			19,056			17,205			19,273			21,407
Preferred dividends		1,509			1,509			1,509			1,509			1,509
Net income available to common stockholders	$	15,652		$	17,547		$	15,696		$	17,764		$	19,898

Weighted average diluted common shares outstanding		38,525,484			38,448,594			38,511,747			38,651,391			38,829,681
Diluted EPS (GAAP)	$	0.41		$	0.46		$	0.41		$	0.46		$	0.51

Reconciliation of GAAP Net Income to Operating Net Income:
Net income	$	17,161		$	19,056		$	17,205		$	19,273		$	21,407
Merger and restructuring		742			–			–			–			–
Amoritization of core deposit intangibles		297			321			321			348			347
FDIC special assessment		–			–			–			2,100			–
Net (gains) losses on equity securities		(432	)		209			(86	)		(557	)		273
Tax impact of adjustments		(171	)		(149	)		(66	)		(569	)		(187	)
Operating net income	$	17,597		$	19,437		$	17,374		$	20,595		$	21,840
Preferred dividends		1,509			1,509			1,509			1,509			1,509
Operating net income available to common stockholders	$	16,088		$	17,928		$	15,865		$	19,086		$	20,331

Opearting diluted EPS (non-GAAP)⁽¹⁾	$	0.42		$	0.47		$	0.41		$	0.49		$	0.52

Return on Assets Measures
Average assets	$	9,742,853		$	9,745,853		$	9,860,753		$	9,690,746		$	9,625,625
Return on avg. assets		0.70	%		0.79	%		0.70	%		0.79	%		0.88	%
Operating return on avg. assets (non-GAAP)⁽²⁾		0.72			0.80			0.71			0.84			0.90
_________________________
⁽¹⁾Operating net income available to common stockholders divided by weighted average diluted shares outstanding.
⁽²⁾Operating net income divided by average assets.

	Three Months Ended
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
Return on Equity Measures	(dollars in thousands)
Average stockholders’ equity	$	1,234,724		$	1,220,621		$	1,220,818		$	1,198,389		$	1,202,647
Less: average preferred stock		(110,927	)		(110,927	)		(110,927	)		(110,927	)		(110,927	)
Average common equity	$	1,123,797		$	1,109,694		$	1,109,891		$	1,087,462		$	1,091,720
Less: average intangible assets		(213,502	)		(213,813	)		(214,133	)		(214,472	)		(214,822	)
Average tangible common equity	$	910,295		$	895,881		$	895,758		$	872,990		$	876,898
Return on avg. common equity (GAAP)		5.54	%		6.36	%		5.69	%		6.48	%		7.23	%
Operating return on avg. common equity (non-GAAP)⁽³⁾		5.70			6.50			5.75			6.96			7.39
Return on avg. tangible common equity (non-GAAP)⁽⁴⁾		6.93			7.98			7.15			8.18			9.11
Operating return on avg. tangible common equity (non-GAAP)⁽⁵⁾		7.03			8.05			7.12			8.67			9.20

Efficiency Measures
Total noninterest expenses	$	38,641		$	37,594		$	37,065		$	37,845		$	35,784
Merger and restructuring		(742	)		–			–			–			–
Amortization of core deposit intangibles		(297	)		(321	)		(321	)		(348	)		(347	)
FDIC special assessment		–			–			–			(2,100	)		–
Operating noninterest expense	$	37,602		$	37,273		$	36,744		$	35,397		$	35,437

Net interest income (tax equivalent basis)	$	61,710		$	62,255		$	61,111		$	62,627		$	63,208
Noninterest income		4,737			4,399			3,848			4,209			3,562
Net (gains) losses on equity securities		(432	)		209			(86	)		(557	)		273
Operating revenue	$	66,015		$	66,863		$	64,873		$	66,279		$	67,043

Operating efficiency ratio (non-GAAP)⁽⁶⁾		57.0	%		55.7	%		56.6	%		53.4	%		52.9	%

Net Interest Margin
Average interest-earning assets	$	9,206,038		$	9,210,050		$	9,323,291		$	9,172,165		$	9,089,431
Net interest income (tax equivalent basis)		61,710			62,255			61,111			62,627			63,208
Net interest margin (GAAP)		2.67	%		2.72	%		2.64	%		2.71	%		2.76	%
_________________________
⁽³⁾Operating net income available to common stockholders divided by average common equity.
⁽⁴⁾Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.
⁽⁵⁾Operating net income available to common stockholders, divided by average tangible common equity.
⁽⁶⁾Operating noninterest expense divided by operating revenue.

	As of
	Sept. 30,			Jun. 30,			Mar. 31,			Dec. 31,			Sep. 30,
		2024			2024			2024			2023			2023
Capital Ratios and Book Value per Share	(dollars in thousands, except for per share data)
Stockholders equity	$	1,239,496		$	1,224,227		$	1,216,609		$	1,216,620		$	1,188,154
Less: preferred stock		(110,927	)		(110,927	)		(110,927	)		(110,927	)		(110,927	)
Common equity	$	1,128,569		$	1,113,300		$	1,105,682		$	1,105,693		$	1,077,227
Less: intangible assets		(213,307	)		(213,604	)		(213,925	)		(214,246	)		(214,594	)
Tangible common equity	$	915,262		$	899,696		$	891,757		$	891,447		$	862,633

Total assets	$	9,639,603		$	9,723,731		$	9,853,964		$	9,855,603		$	9,678,885
Less: intangible assets		(213,307	)		(213,604	)		(213,925	)		(214,246	)		(214,594	)
Tangible assets	$	9,426,296		$	9,510,127		$	9,640,039		$	9,641,357		$	9,464,291

Common shares outstanding		38,368,217			38,365,069			38,333,053			38,519,770			38,621,970

Common equity ratio (GAAP)		11.71	%		11.45	%		11.22	%		11.22	%		11.13	%
Tangible common equity ratio (non-GAAP)⁽⁷⁾		9.71			9.46			9.25			9.25			9.11

Regulatory capital ratios (Bancorp):
Leverage ratio		11.10	%		10.97	%		10.73	%		10.86	%		10.86	%
Common equity Tier 1 risk-based ratio		11.07			10.90			10.70			10.62			10.64
Risk-based Tier 1 capital ratio		12.42			12.25			12.03			11.95			11.98
Risk-based total capital ratio		14.29			14.10			13.88			13.77			13.90

Regulatory capital ratios (Bank):
Leverage ratio		11.43	%		11.29	%		11.10	%		11.20	%		11.23	%
Common equity Tier 1 risk-based ratio		12.79			12.60			12.43			12.31			12.38
Risk-based Tier 1 capital ratio		12.79			12.60			12.43			12.31			12.38
Risk-based total capital ratio		13.77			13.58			13.41			13.28			13.43

Book value per share (GAAP)	$	29.41		$	29.02		$	28.84		$	28.70		$	27.89
Tangible book value per share (non-GAAP)⁽⁸⁾		23.85			23.45			23.26			23.14			22.34

Net Loan Charge-offs (Recoveries):
Net loan charge-offs (recoveries):
Charge-offs	$	3,559		$	3,595		$	3,185		$	8,960		$	2,487
Recoveries		(53	)		(324	)		(23	)		–			(8	)
Net loan charge-offs	$	3,506		$	3,271		$	3,162		$	8,960		$	2,479
Net loan charge-offs as a % of average loans receivable (annualized)		0.17	%		0.16	%		0.15	%		0.43	%		0.12	%

Asset Quality
Nonaccrual loans	$	51,300		$	46,026		$	47,438		$	52,524		$	56,059
Other real estate owned		–			–			–			–			–
Nonperforming assets	$	51,300		$	46,026		$	47,438		$	52,524		$	56,059

Allowance for credit losses – loans (“ACL”)	$	82,494		$	82,077		$	82,869		$	81,974		$	88,230
Loans receivable		8,111,976			8,157,903			8,297,957			8,345,145			8,181,109

Nonaccrual loans as a % of loans receivable		0.63	%		0.56	%		0.57	%		0.63	%		0.69	%
Nonperforming assets as a % of total assets		0.53			0.47			0.48			0.53			0.58
ACL as a % of loans receivable		1.02			1.01			1.00			0.98			1.08
ACL as a % of nonaccrual loans		160.8			178.3			174.7			156.1			157.4
_________________________
⁽⁷⁾Tangible common equity divided by tangible assets.
⁽⁸⁾Tangible common equity divided by common shares outstanding at period-end.

CONNECTONE BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)

	For the Quarter Ended
	September 30, 2024								June 30, 2024									September 30, 2023
	Average									Average									Average
Interest-earning assets:	Balance			Interest			Rate⁽⁷⁾			Balance			Interest			Rate⁽⁷⁾			Balance			Interest			Rate⁽⁷⁾
Investment securities^{(1) (2)}	$	736,946		$	6,157		3.32	%		$	739,591		$	6,102		3.32	%		$	723,408		$	5,566		3.05	%
Loans receivable and loans held-for-sale^{(2) (3) (4)}		8,123,416			119,805		5.87				8,212,825			120,663		5.91				8,169,310			115,954		5.63
Federal funds sold and interest-
bearing deposits with banks		304,009			4,056		5.31				212,811			2,841		5.37				158,155			2,110		5.29
Restricted investment in bank stock		41,667			1,048		10.01				44,823			1,217		10.92				38,558			907		9.33
Total interest-earning assets		9,206,038			131,066		5.66				9,210,050			130,823		5.71				9,089,431			124,537		5.44
Allowance for credit losses		(83,355	)								(84,681	)								(89,966	)
Noninterest-earning assets		620,170									620,484									626,160
Total assets	$	9,742,853								$	9,745,853								$	9,625,625

Interest-bearing liabilities:
Time deposits	$	2,625,329			30,245		4.58			$	2,587,706			28,898		4.49			$	2,606,122			25,437		3.87
Other interest-bearing deposits		3,747,427			33,540		3.56				3,721,167			33,188		3.59				3,723,561			30,606		3.26
Total interest-bearing deposits		6,372,756			63,785		3.98				6,308,873			62,086		3.96				6,329,683			56,043		3.51

Borrowings		717,586			4,239		2.35				787,256			5,150		2.63				651,112			3,950		2.41
Subordinated debentures, net		79,735			1,312		6.55				79,609			1,311		6.62				79,230			1,312		6.57
Finance lease		1,349			20		5.90				1,416			21		5.96				1,603			24		5.94
Total interest-bearing liabilities		7,171,426			69,356		3.85				7,177,154			68,568		3.84				7,061,628			61,329		3.45

Noninterest-bearing demand deposits		1,259,912									1,256,251									1,275,325
Other liabilities		76,791									91,827									86,025
Total noninterest-bearing liabilities		1,336,703									1,348,078									1,361,350
Stockholders’ equity		1,234,724									1,220,621									1,202,647
Total liabilities and stockholders’ equity	$	9,742,853								$	9,745,853								$	9,625,625

Net interest income (tax equivalent basis)					61,710									62,255									63,208
Net interest spread⁽⁵⁾							1.82	%								1.87	%								1.99	%

Net interest margin⁽⁶⁾							2.67	%								2.72	%								2.76	%

Tax equivalent adjustment					(823	)								(816	)								(851	)
Net interest income				$	60,887								$	61,439								$	62,357
_________________________
⁽¹⁾Average balances are calculated on amortized cost.
⁽²⁾Interest income is presented on a tax equivalent basis using 21% federal tax rate.
⁽³⁾Includes loan fee income.
⁽⁴⁾Loans include nonaccrual loans.
⁽⁵⁾Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing.
liabilities and is presented on a tax equivalent basis.
⁽⁶⁾Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.
⁽⁷⁾Rates are annualized.

The MIL Network –

January 25, 2025

MIL-OSI: Nasdaq Reports Third Quarter 2024 Results; Fourth Consecutive Quarter of Double-Digit Solutions Revenue Growth

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the third quarter of 2024.

Third quarter 2024 net revenue¹ was $1.1 billion, or $1.2 billion on a non-GAAP basis², an increase of 22% over the third quarter of 2023, up 10% on a pro forma³ basis. This included Solutions⁴ revenue increasing 26%, or 10% on a pro forma basis.
Annualized Recurring Revenue (ARR)⁵ of $2.7 billion increased 31% over the third quarter of 2023, up 8% on a pro forma basis.
Financial Technology revenue of $371 million increased 56% over the third quarter of 2023, up 10% on a pro forma basis.
Index revenue of $182 million increased 26%, with $62 billion of net inflows over the trailing twelve months and $14 billion in the third quarter.
GAAP diluted earnings per share decreased 11% in the third quarter of 2024. Non-GAAP diluted earnings per share increased 5% in the third quarter of 2024 and increased 20% organically.
In the third quarter of 2024, the company returned $138 million to shareholders through dividends and $88 million through repurchases of common stock. The company also repaid net $50 million of commercial paper in the third quarter of 2024.

Third Quarter 2024 Highlights

(US$ millions, except per share)	3Q24	Change % (YoY)	Organic change % (YoY)	Pro forma change % (YoY)
GAAP Solutions Revenue	$872	26%
Non-GAAP Solutions Revenue	$906	31%	9%	10%
Market Services Net Revenue	$266	13%	13%
GAAP Net Revenue*	$1,146	22%
Non-GAAP Net Revenue*	$1,180	26%	10%	10%
GAAP Operating Income	$448	4%
Non-GAAP Operating Income	$637	30%	12%	14%
ARR	$2,736	31%	7%	8%
GAAP Diluted EPS	$0.53	(11)%
Non-GAAP Diluted EPS	$0.74	5%	20%

^{Note: The period over period percentages are calculated based on exact dollars, and therefore may not agree to a recalculation based on rounded numbers shown in the table above. Pro forma results are not calculated in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Refer to the footnotes below for further discussion.}

^{*Net revenues includes $8 million of Other Revenues, which reflect revenues associated with the European power trading and clearing business.}

Adena Friedman, Chair and CEO said, “Nasdaq delivered its fourth consecutive quarter of double-digit Solutions growth with strong overall quarterly performance.

As we approach the one-year anniversary of the Adenza acquisition, I am proud of our progress to date and excited about driving even greater value for our clients and shareholders.

The integration continues seamlessly. Through our One Nasdaq strategy we are deepening our partnerships with clients across the financial system and unlocking opportunities for sustained and scalable growth.”

Sarah Youngwood, Executive Vice President and CFO said, “Nasdaq’s performance continues to reflect the quality and diversity of our platforms, driving strong growth across the business with particular strength in Index and Financial Technology.

We are continuing to deliver ahead on deleveraging and synergies and are benefiting from significant operating leverage.

Looking ahead, we remain well positioned to execute on our next phase of sustainable growth.”

FINANCIAL REVIEW

Third quarter 2024 net revenue was $1.1 billion, reflecting 22% growth versus the prior year period while non-GAAP net revenue was $1.2 billion. Revenue growth included a $146 million benefit related to the acquisition of Adenza. Net revenue grew 10% on a pro forma basis.

Solutions revenue was $872 million in the third quarter of 2024, up 26% versus the prior year period, or 10% growth on a pro forma basis, reflecting strong growth from Index and Financial Technology.

ARR grew 31% year over year, or 8% on a pro forma basis, in the third quarter of 2024 with 14% pro forma ARR growth for Financial Technology and 2% ARR growth for Capital Access Platforms.

Market Services net revenue was $266 million in the third quarter of 2024, up 13% versus the prior year period. The increase was primarily driven by a $15 million increase in U.S. equity derivatives and an $11 million increase in U.S. cash equities.

Third quarter 2024 GAAP operating expenses were $698 million, an increase of 37% versus the prior year period. The increase for the third quarter was primarily due to the acquisition of Adenza, which resulted in an additional $87 million in amortization expense of acquired intangible assets, and $61 million of other AxiomSL and Calypso operating expenses, as well as organic growth driven by increased investments in technology and our people to drive innovation and long-term growth.

Third quarter 2024 non-GAAP operating expenses were $543 million, reflecting 21% growth versus the prior year period, or 5% growth on a pro forma basis. The increase for the third quarter was primarily due to the inclusion of $61 million of AxiomSL and Calypso operating expenses. The pro forma increase reflects growth driven by increased investments in technology and our people to drive innovation and long-term growth, partially offset by the benefit of synergies.

Third quarter 2024 cash flow from operations was $244 million, enabling the company to continue to make meaningful progress on its deleveraging plan. In the third quarter, the company returned $138 million to shareholders through dividends and $88 million through repurchases of our common stock. The company also repaid net $50 million of commercial paper in the third quarter of 2024. As of September 30, 2024, there was $1.7 billion remaining under the board authorized share repurchase program.

2024 EXPENSE AND TAX GUIDANCE UPDATE⁶

The company is updating its 2024 non-GAAP operating expense guidance to a range of $2,150 million to $2,180 million, and is updating its 2024 non-GAAP tax rate guidance to be in the range of 23.5% to 24.5%.

STRATEGIC AND BUSINESS UPDATES

Financial Technology delivered healthy revenue growth in the third quarter. Division revenue increased 10% on a pro forma basis, reflective of the mission-critical nature of the division’s solutions suite. Financial Technology pro forma ARR growth was 14% in the third quarter, with 39 new customers, 110 upsells, and 2 cross-sells. Third quarter highlights include:
- Nasdaq leapt to 5th place in Chartis’ annual RiskTech100® global ranking. This ranking is widely regarded as the most comprehensive independent study of the world’s major players in risk and compliance technology. The significant jump in ranking reflects the combined power of Nasdaq and Adenza’s technology offerings with Nasdaq and Adenza previously ranking #18 and #10, respectively. Nasdaq Verafin and AxiomSL won Chartis industry awards recognizing Nasdaq’s leadership in financial crime management and in regulatory reporting. The study also highlighted the value of Nasdaq’s governance and sustainability solutions.
- Financial Crime Management Technology had ARR growth of 24% with 114% net revenue retention and launched new AI product innovations. Financial Crime Management Technology signed 28 new SMB clients, in addition to the previously announced Tier 1 win in July. Nasdaq Verafin extended its track record of product innovation success with its AI Entity Research Copilot now deployed to more than 2,000 U.S. institutions. In the third quarter Nasdaq Verafin announced new enhancements to its Targeted Typology Analytics, an artificial intelligence (AI) based suite of detection capabilities targeting terrorist financing and drug trafficking activity.
- AxiomSL and Calypso achieved 15% combined pro forma ARR growth. AxiomSL and Calypso delivered a combined 47 upsells and 4 new clients, with 17% of new bookings in the quarter cloud-based. Combined gross revenue retention⁷ was 97% and net revenue retention⁸ was 111%. Excluding the impact of a significant bankruptcy first noted in the fourth quarter of 2023, pro forma ARR growth was 16%, gross revenue retention was 98%, and net revenue retention was 112%.
- Market Technology delivered 14% ARR growth as it continues to capture opportunities associated with the market modernization megatrend. Market Technology was driven by 13 upsells, 1 new client, and 1 cross-sell in the third quarter. ARR growth also benefited from the conversion of a previously mentioned large client delivery.
U.S. equity derivatives achieved record quarterly net revenue. In the third quarter of 2024, Nasdaq achieved a record quarter of U.S. equity derivatives net revenue of $107 million, with multi-listed U.S. options market share once again surpassing 30% in the quarter and 19% growth in U.S. index options volume.

Index delivered another quarter of outstanding performance and advanced its growth strategy across product innovation, globalization, and institutional client expansion. The Index business had $62 billion in net inflows over the trailing 12 months, with $14 billion in the third quarter. The business achieved another record in Index ETP AUM, averaging $575 billion in the third quarter and reaching $600 billion at quarter-end. Index derivatives trading volumes grew 24% year-over-year, also contributing to revenue growth. Nasdaq launched 35 new products with our partners in the quarter, 20 of which were international. The launches included 8 options overlays and 7 institutional insurance annuity products. Additionally, Nasdaq recently received 2024 Best Index Provider from Structured Retail Products, a global market intelligence provider, highlighting the business’ innovation and success as a strategic partner to our clients.
Nasdaq strengthened its listings leadership in the U.S. in the third quarter. Nasdaq listed 33 U.S. operating company IPOs that raised more than $6 billion in proceeds, reflecting an 85% win rate among eligible operating companies in the quarter. These listings contributed to a 75% win rate year-to-date through the third quarter for eligible operating companies comprising of 5 of the top 10 IPOs, including Lineage, the largest offering so far this year. Nasdaq also celebrated its 500th switch to our U.S. exchange in the quarter.
Nasdaq celebrated 25 Years of MarketSite in Times Square. MarketSite has stood as a physical embodiment of the Nasdaq brand since its debut and reflects Nasdaq’s culture of driving innovation and delivering valuable client solutions. MarketSite is a hub for Nasdaq’s clients and partners and an integral part of the global finance landscape.
Nasdaq continued its progress on its 2024 strategic priorities – Integrate, Innovate, Accelerate – positioning the company to capitalize on opportunities for sustainable, scalable, and resilient growth.
- Integrate – Since the acquisition of Adenza nearly a year-ago, Nasdaq has actioned more than 80% of its net expense synergy target and continues to delever ahead of plan.
- Innovate – Nasdaq reached new milestones in deploying AI tools and products including the launch of an internal Generative AI platform with custom-built efficiency tools and completed the rollout of AI copilot tools to all of its developers. Calypso also announced an AI-based solution for X-Value Adjustments (XVA) with up to 100 times faster processing speeds that improves the efficiency of risk calculations for banks, insurers, and other financial institutions. Beyond Nasdaq’s AI innovations, Market Services migrated Nasdaq International Securities Exchange to its next-generation derivatives platform, Fusion. Four of Nasdaq’s U.S. markets and one European equity derivatives market are operating on this platform which provides enhanced performance, including lower latency, higher throughput, and increased productivity.
- Accelerate – We continue to make progress on our One Nasdaq strategy driving two cross-sells across the Financial Technology division in the quarter. The percentage of cross-sell opportunities in the division’s pipeline is over 10% and Nasdaq remains on track to exceed $100 million in cross-sells by the end of 2027.

____________
¹ Represents revenue less transaction-based expenses.
² Refer to our reconciliations of U.S. GAAP to non-GAAP Solutions revenue, net revenue, net income attributable to Nasdaq, diluted earnings per share, operating income, operating expenses and organic impacts included in the attached schedules.
³ Pro forma results are presented assuming AxiomSL and Calypso were included in the prior year quarterly results and revenue for AxiomSL on-premises contracts were recognized ratably for all of 2023 and 2024. Pro forma growth excludes the impacts of foreign currency except for AxiomSL and Calypso, which are not yet calculated on an organic basis. These pro forma results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this release.
⁴ Constitutes revenue from our Capital Access Platforms and Financial Technology segments.
⁵ Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
⁶ U.S. GAAP operating expense and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.
⁷ Gross Retention: ARR in the current period over ARR in the prior year period for existing customers excluding price increases and upsells and excluding new customers.
⁸ Net Retention: ARR in the current period over ARR in the prior year period for existing customers including price increases and upsells and excluding new customers.

ABOUT NASDAQ

Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

NON-GAAP INFORMATION

In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, non-GAAP Solutions revenue, non-GAAP net revenue, non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating income, and non-GAAP operating expenses, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. Management uses this non-GAAP information internally, along with U.S. GAAP information, in evaluating our performance and in making financial and operational decisions. We believe our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance.

These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone.

We understand that analysts and investors regularly rely on non-GAAP financial measures, such as those noted above, to assess operating performance. We use these measures because they highlight trends more clearly in our business that may not otherwise be apparent when relying solely on U.S. GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our ongoing operating performance.

Organic revenue and expense growth, organic change and organic impact are non-GAAP measures that reflect adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture. Reconciliations of these measures are described within the body of this release or in the reconciliation tables at the end of this release.

Foreign exchange impact: In countries with currencies other than the U.S. dollar, revenue and expenses are translated using monthly average exchange rates. Certain discussions in this release isolate the impact of year-over-year foreign currency fluctuations to better measure the comparability of operating results between periods. Operating results excluding the impact of foreign currency fluctuations are calculated by translating the current period’s results by the prior period’s exchange rates.

Restructuring programs: In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In connection with the program, we expect to incur pre-tax charges principally related to employee-related costs, consulting, asset impairments and contract terminations over a two-year period. We expect to achieve benefits in the form of both increased customer engagement and operating efficiencies. Costs related to the Adenza restructuring and the divisional alignment programs are recorded as “restructuring charges” in our consolidated statements of income. We exclude charges associated with these programs for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, dividend program, trading volumes, products and services, ability to transition to new business models or implement our new corporate structure, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, environmental, deleveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, geopolitical instability, government and industry regulation, interest rate risk, U.S. and global competition. Further information on these and other factors are detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

WEBSITE DISCLOSURE

Nasdaq intends to use its website, ir.nasdaq.com, as a means for disclosing material non-public information and for complying with SEC Regulation FD and other disclosure obligations.

Media Relations Contact		Investor Relations Contact
Nick Jannuzzi		Ato Garrett
973.760.1741		212.401.8737
nicholas.jannuzzi.@nasdaq.com		ato.garrett@nasdaq.com

NDAQF


Nasdaq, Inc.
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
(unaudited)

		Three Months Ended						Nine Months Ended
		September 30,			September 30,			September 30,			September 30,
			2024			2023			2024			2023

Revenues:
Capital Access Platforms		$	501		$	456		$	1,460		$	1,309
Financial Technology			371			238			1,183			700
Market Services			1,022			747			2,700			2,378
Other Revenues			8			10			27			30
	Total revenues		1,902			1,451			5,370			4,417
Transaction-based expenses:
Transaction rebates			(513	)		(447	)		(1,478	)		(1,377	)
Brokerage, clearance and exchange fees			(243	)		(64	)		(470	)		(262	)
Revenues less transaction-based expenses			1,146			940			3,422			2,778

Operating Expenses:
Compensation and benefits			332			260			1,000			777
Professional and contract services			36			31			108			92
Technology and communication infrastructure			71			58			207			168
Occupancy			28			28			85			99
General, administrative and other			26			26			84			62
Marketing and advertising			11			12			34			30
Depreciation and amortization			153			64			460			198
Regulatory			9			9			37			27
Merger and strategic initiatives			10			4			23			51
Restructuring charges			22			17			103			49
	Total operating expenses		698			509			2,141			1,553
Operating income			448			431			1,281			1,225
Interest income			8			72			20			86
Interest expense			(102	)		(101	)		(313	)		(174	)
Other income (loss)			1			1			15			(6	)
Net income (loss) from unconsolidated investees			1			(12	)		7			(8	)
Income before income taxes			356			391			1,010			1,123
Income tax provision			51			97			250			262
Net income			305			294			760			861
Net loss attributable to noncontrolling interests			1			—			2			1
Net income attributable to Nasdaq		$	306		$	294		$	762		$	862

Per share information:
Basic earnings per share		$	0.53		$	0.60		$	1.32		$	1.76
Diluted earnings per share		$	0.53		$	0.60		$	1.32		$	1.74
Cash dividends declared per common share		$	0.24		$	0.22		$	0.70		$	0.64

Weighted-average common shares outstanding
for earnings per share:
Basic			575.1			491.3			575.6			490.7
Diluted			579.0			494.1			579.0			494.2

Nasdaq, Inc.
Revenue Detail
(in millions)
(unaudited)

				Three Months Ended						Nine Months Ended
				September 30,			September 30,			September 30,			September 30,
					2024			2023			2024			2023

CAPITAL ACCESS PLATFORMS
	Data and Listing Services revenues			$	190		$	188		$	562		$	559
	Index revenues				182			144			517			383
	Workflow and Insights revenues				129			124			381			367
		Total Capital Access Platforms revenues			501			456			1,460			1,309

FINANCIAL TECHNOLOGY
	Financial Crime Management Technology revenues				69			58			200			163
	Regulatory Technology revenues				68			35			253			102
	Capital Markets Technology revenues				234			145			730			435
		Total Financial Technology revenues			371			238			1,183			700

MARKET SERVICES
	Market Services revenues				1,022			747			2,700			2,378
	Transaction-based expenses:
			Transaction rebates		(513	)		(447	)		(1,478	)		(1,377	)
			Brokerage, clearance and exchange fees		(243	)		(64	)		(470	)		(262	)
		Total Market Services revenues, net			266			236			752			739

OTHER REVENUES					8			10			27			30

REVENUES LESS TRANSACTION-BASED EXPENSES				$	1,146		$	940		$	3,422		$	2,778

Nasdaq, Inc.
Condensed Consolidated Balance Sheets
(in millions)

		September 30,			December 31,
			2024			2023
Assets		(unaudited)
Current assets:
	Cash and cash equivalents	$	266		$	453
	Restricted cash and cash equivalents		42			20
	Default funds and margin deposits		5,865			7,275
	Financial investments		202			188
	Receivables, net		944			929
	Other current assets		239			231
Total current assets			7,558			9,096
Property and equipment, net			584			576
Goodwill			14,165			14,112
Intangible assets, net			7,072			7,443
Operating lease assets			388			402
Other non-current assets			793			665
Total assets		$	30,560		$	32,294

Liabilities
Current liabilities:
	Accounts payable and accrued expenses	$	289		$	332
	Section 31 fees payable to SEC		74			84
	Accrued personnel costs		314			303
	Deferred revenue		663			594
	Other current liabilities		229			146
	Default funds and margin deposits		5,865			7,275
	Short-term debt		499			291
Total current liabilities			7,933			9,025
Long-term debt			9,359			10,163
Deferred tax liabilities, net			1,566			1,642
Operating lease liabilities			399			417
Other non-current liabilities			222			220
Total liabilities			19,479			21,467

Commitments and contingencies
Equity
Nasdaq stockholders’ equity:
	Common stock		6			6
	Additional paid-in capital		5,477			5,496
	Common stock in treasury, at cost		(643	)		(587	)
	Accumulated other comprehensive loss		(1,952	)		(1,924	)
	Retained earnings		8,184			7,825
Total Nasdaq stockholders’ equity			11,072			10,816
	Noncontrolling interests		9			11
Total equity			11,081			10,827
Total liabilities and equity		$	30,560		$	32,294

Nasdaq, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Net Income Attributable to Nasdaq and Diluted Earnings Per Share
(in millions, except per share amounts)
(unaudited)


		Three Months Ended						Nine Months Ended
		September 30,			September 30,			September 30,			September 30,
			2024			2023			2024			2023

U.S. GAAP net income attributable to Nasdaq		$	306		$	294		$	762		$	862
Non-GAAP adjustments:
	Adenza purchase accounting adjustment ⁽¹⁾		34			—			34			—
	Amortization expense of acquired intangible assets ⁽²⁾		122			37			366			112
	Merger and strategic initiatives expense ⁽³⁾		10			4			23			51
	Restructuring charges ⁽⁴⁾		22			17			103			49
	Lease asset impairments ⁽⁵⁾		—			—			—			24
	Net (income) loss from unconsolidated investees ⁽⁶⁾		(1	)		12			(7	)		8
	Legal and regulatory matters ⁽⁷⁾		—			—			16			(10	)
	Pension settlement charge ⁽⁸⁾		—			—			23			—
	Other (income) loss ⁽⁹⁾		1			9			(8	)		17
	Total non-GAAP adjustments		188			79			550			251
	Non-GAAP adjustment to the income tax provision ⁽¹⁰⁾		(65	)		(24	)		(151	)		(76	)
	Tax on intra-group transfer of intellectual property assets ⁽¹¹⁾		—			—			33			—
	Total non-GAAP adjustments, net of tax		123			55			432			175
Non-GAAP net income attributable to Nasdaq		$	429		$	349		$	1,194		$	1,037

U.S. GAAP diluted earnings per share		$	0.53		$	0.60		$	1.32		$	1.74
	Total adjustments from non-GAAP net income above		0.21			0.11			0.74			0.36
Non-GAAP diluted earnings per share		$	0.74		$	0.71		$	2.06		$	2.10

Weighted-average diluted common shares outstanding for earnings per share:			579.0			494.1			579.0			494.2


(1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.

(2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.

(3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.

(4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.

(5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.

(6) We exclude our share of the earnings and losses of our equity method investments. This provides a more meaningful analysis of Nasdaq’s ongoing operating performance or comparisons in Nasdaq’s performance between periods.

(7) For the nine months ended September 30, 2024, these items primarily included the settlement of a Swedish Financial Supervisory Authority, or SFSA, fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.

(8) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.

(9) For the nine months ended September 30, 2024, and for the three and nine months ended September 30, 2023, other items primarily include net gains from strategic investments entered into through our corporate venture program, which are included in other income (loss) in our Condensed Consolidated Statements of Income.

(10) The non-GAAP adjustment to the income tax provision primarily includes the tax impact of each non-GAAP adjustment.

(11) For the nine months ended September 30, 2024, the completion of an intra-group transfer of intellectual property assets to U.S. headquarters resulted in a net tax expense of $33 million.

Nasdaq, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Revenues Less Transaction-Based Expenses
(in millions)
(unaudited)

	Three Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2024
	U.S. GAAP Revenues Less Transaction-Based Expenses		Adenza purchase accounting adjustment ⁽¹⁾		Non-GAAP Revenues Less Transaction-Based Expenses		U.S. GAAP Revenues Less Transaction-Based Expenses		Adenza purchase accounting adjustment ⁽¹⁾		Non-GAAP Revenues Less Transaction-Based Expenses
CAPITAL ACCESS PLATFORMS	$	501	$	—	$	501	$	1,460	$	—	1,460

FINANCIAL TECHNOLOGY
Financial Crime Management Technology revenues		69		—		69		200		—	200
Regulatory Technology revenues ⁽¹⁾		68		34		102		253		34	287
Capital Markets Technology revenues		234		—		234		730		—	730
Total Financial Technology revenues		371		34		405		1,183		34	1,217
SOLUTIONS REVENUES		872		34		906		2,643		34	2,677

MARKET SERVICES REVENUES, NET		266		—		266		752		—	752
OTHER REVENUES		8		—		8		27		—	27
REVENUES LESS TRANSACTION-BASED EXPENSES	$	1,146	$	34	$	1,180	$	3,422	$	34	3,456

(1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.

Nasdaq, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Operating Income and Operating Margin
(in millions)
(unaudited)

		Three Months Ended						Nine Months Ended
		September 30,			September 30,			September 30,			September 30,
			2024			2023			2024			2023

U.S. GAAP operating income		$	448		$	431		$	1,281		$	1,225
Non-GAAP adjustments:
	Adenza purchase accounting adjustment ⁽¹⁾		34			—			34			—
	Amortization expense of acquired intangible assets ⁽²⁾		122			37			366			112
	Merger and strategic initiatives expense ⁽³⁾		10			4			23			51
	Restructuring charges ⁽⁴⁾		22			17			103			49
	Lease asset impairments ⁽⁵⁾		—			—			—			24
	Legal and regulatory matters ⁽⁶⁾		—			—			16			(10	)
	Pension settlement charge ⁽⁷⁾		—			—			23			—
	Other loss		1			2			4			2
	Total non-GAAP adjustments		189			60			569			228
Non-GAAP operating income		$	637		$	491		$	1,850		$	1,453

Revenues less transaction-based expenses		$	1,146		$	940		$	3,422		$	2,778

U.S. GAAP operating margin ⁽⁸⁾			39	%		46	%		37	%		44	%

Non-GAAP operating margin ⁽⁹⁾			54	%		52	%		54	%		52	%


(1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.

(2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.

(3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.

(4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.

(5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.

(6) For the nine months ended September 30, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.

(7) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.

(8) U.S. GAAP operating margin equals U.S. GAAP operating income divided by revenues less transaction-based expenses.

(9) Non-GAAP operating margin equals non-GAAP operating income divided by non-GAAP revenues less transaction-based expenses.

Nasdaq, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Operating Expenses
(in millions)
(unaudited)

		Three Months Ended						Nine Months Ended
		September 30,			September 30,			September 30,			September 30,
			2024			2023			2024			2023

U.S. GAAP operating expenses		$	698		$	509		$	2,141		$	1,553
Non-GAAP adjustments:
	Amortization expense of acquired intangible assets ⁽¹⁾		(122	)		(37	)		(366	)		(112	)
	Merger and strategic initiatives expense ⁽²⁾		(10	)		(4	)		(23	)		(51	)
	Restructuring charges ⁽³⁾		(22	)		(17	)		(103	)		(49	)
	Lease asset impairments ⁽⁴⁾		—			—			—			(24	)
	Legal and regulatory matters ⁽⁵⁾		—			—			(16	)		10
	Pension settlement charge ⁽⁶⁾		—			—			(23	)		—
	Other (loss)		(1	)		(2	)		(4	)		(2	)
	Total non-GAAP adjustments		(155	)		(60	)		(535	)		(228	)
Non-GAAP operating expenses		$	543		$	449		$	1,606		$	1,325


(1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.

(2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.

(3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.

(4) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.

(5) For the nine months ended September 30, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.

(6) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.

Nasdaq, Inc.
Reconciliation of Pro Forma Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
Non-GAAP Operating Income, and Non-GAAP Operating Margin
(in millions)
(unaudited)

	Three Months Ended									Three Months Ended
	September 30, 2024									September 30, 2023								Total Variance					FX ⁽³⁾		Pro Forma Impacts
	Non-GAAP			Adenza Adjustment ⁽¹⁾			Pro Forma			Non-GAAP			Adenza ⁽²⁾		Pro Forma			$			%		$		$			%
Capital Access Platforms revenues	$	501		$	—		$	501		$	456		$	—	$	456		$	45		10	%	$	1	$	44		9	%

Financial Crime Management Technology revenues		69			—			69			58			—		58			11		20	%		—		11		20	%
Regulatory Technology revenues		102			(2	)		100			35			56		91			9		10	%		1		8		8	%
Capital Markets Technology revenues		234			—			234			145			71		216			18		8	%		—		18		8	%
Financial Technology revenues		405			(2	)		403			238			127		365			38		10	%		1		37		10	%
Solutions revenues ⁽⁴⁾		906			(2	)		904			694			127		821			83		10	%		2		81		10	%

Market Services, net revenues		266			—			266			236			—		236			30		13	%		—		30		13	%
Other revenues		8			—			8			10			—		10			(2	)	(13	)%		—		(2	)	(14	)%
Revenues less transaction-based expenses		1,180			(2	)		1,178			940			127		1,067			111		10	%		2		109		10	%

Non-GAAP operating expenses		543			—			543			449			65		514			29		6	%		1		28		5	%
Non-GAAP operating income	$	637		$	(2	)	$	635		$	491		$	62	$	553		$	82		15	%	$	1	$	81		14	%
Non-GAAP operating margin		54	%					54	%		52	%				52	%

Note: Pro forma results are presented assuming AxiomSL and Calypso were included in the prior year quarterly results and revenue for AxiomSL on-premises contracts were recognized ratably for all of 2023 and 2024. Pro forma growth excludes the impacts of foreign currency except for AxiomSL and Calypso, which are not yet calculated on an organic basis. These pro forma results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this release. The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions.

(1) Adjustment to remove the cumulative impact of changing to ratable revenue recognition for AxiomSL on-premises subscription contracts, which related to the first six months of 2024.

(2) The Adenza results above are presented on a non-GAAP basis and have been adjusted for certain items. We believe presenting these measures excluding these items provides investors with greater transparency as they do not represent ongoing operations. These adjustments include intangible amortization of $39 million and other transaction and restructuring related costs of $3 million for the third quarter of 2023.

(3) Reflects the impacts from changes in FX rates.

(4) Represents Capital Access Platforms and Financial Technology Segments.

Nasdaq, Inc.
Reconciliation of Organic Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
Non-GAAP Operating Income, and Non-GAAP Diluted Earnings Per Share
(in millions)
(unaudited)

	Three Months Ended
	September 30,		September 30,		Total Variance					Organic Impact					Other Impacts ⁽¹⁾
	2024		2023		$			%		$			%		$			%
CAPITAL ACCESS PLATFORMS
Data and Listing Services revenues	$	190	$	188	$	2		1	%	$	1		1	%	$	1		—	%
Index revenues		182		144		38		26	%		38		26	%		—		—	%
Workflow and Insights revenues		129		124		5		4	%		5		3	%		—		—	%
Total Capital Access Platforms revenues		501		456		45		10	%		44		9	%		1		—	%

FINANCIAL TECHNOLOGY
Financial Crime Management Technology revenues		69		58		11		20	%		11		20	%		—		—	%
Regulatory Technology revenues		102		35		67		190	%		2		6	%		65		185	%
Capital Markets Technology revenues		234		145		89		62	%		7		5	%		82		57	%
Total Financial Technology revenues		405		238		167		71	%		20		9	%		147		62	%

SOLUTIONS REVENUES ⁽²⁾		906		694		212		31	%		64		9	%		148		21	%

MARKET SERVICES REVENUES, NET		266		236		30		13	%		30		13	%		—		—	%

OTHER REVENUES		8		10		(2	)	(13	)%		(2	)	(14	)%		—		1	%

REVENUES LESS TRANSACTION-BASED EXPENSES	$	1,180	$	940	$	240		26	%	$	92		10	%	$	148		16	%

Non-GAAP Operating Expenses	$	543	$	449	$	94		21	%	$	32		7	%	$	62		14	%

Non-GAAP Operating Income	$	637	$	491	$	146		30	%	$	60		12	%	$	86		18	%

Non-GAAP diluted earnings per share	$	0.74	$	0.71	$	0.03		5	%	$	0.14		20	%	$	(0.11	)	(16	)%

Note: The period over period percentages are calculated based on exact dollars, and therefore may not agree to a recalculation based on rounded numbers shown in the tables above. The sum of the percentage changes may not tie to the percentage change in total variance due to rounding.

(1) Primarily includes the impacts of the Adenza acquisition and changes in FX rates.

(2) Represents Capital Access Platforms and Financial Technology Segments.

Nasdaq, Inc.
Quarterly Key Drivers Detail
(unaudited)

		Three Months Ended						Nine Months Ended
		September 30,			September 30,			September 30,			September 30,
			2024			2023			2024			2023
Capital Access Platforms
	Annualized recurring revenues (in millions) ⁽¹⁾	$	1,254		$	1,222		$	1,254		$	1,222
	Initial public offerings
	The Nasdaq Stock Market ⁽²⁾		48			39			114			102
	Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic		1			—			7			3
	Total new listings
	The Nasdaq Stock Market ⁽²⁾		138			87			301			230
	Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic ⁽³⁾		6			3			18			16
	Number of listed companies
	The Nasdaq Stock Market ⁽⁴⁾		4,039			4,086			4,039			4,086
	Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic ⁽⁵⁾		1,186			1,236			1,186			1,236
	Index
	Number of licensed exchange traded products ⁽⁶⁾		388			366			388			366
	Period end ETP assets under management (AUM) tracking Nasdaq indexes (in billions)	$	600		$	411		$	600		$	411
	Quarterly average ETP AUM tracking Nasdaq indexes (in billions)	$	575		$	423
	TTM ⁽⁷⁾ net inflows ETP AUM tracking Nasdaq indexes (in billions)	$	62		$	24		$	62		$	24
	TTM ⁽⁷⁾ net appreciation ETP AUM tracking Nasdaq indexes (in billions)	$	143		$	78		$	143		$	78

Financial Technology
	Annualized recurring revenues (in millions) ⁽¹⁾
	Financial Crime Management Technology	$	268		$	216		$	268		$	216
	Regulatory Technology		350			132			350			132
	Capital Markets Technology		864			511			864			511
	Total Financial Technology	$	1,482		$	859		$	1,482		$	859

Market Services
	Equity Derivative Trading and Clearing
	U.S. equity options
	Total industry average daily volume (in millions)		44.5			39.6			43.3			40.4
	Nasdaq PHLX matched market share		9.4	%		11.0	%		9.9	%		11.2	%
	The Nasdaq Options Market matched market share		5.8	%		5.6	%		5.5	%		6.4	%
	Nasdaq BX Options matched market share		2.3	%		4.4	%		2.3	%		3.6	%
	Nasdaq ISE Options matched market share		6.8	%		5.7	%		6.7	%		5.8	%
	Nasdaq GEMX Options matched market share		2.7	%		3.0	%		2.6	%		2.3	%
	Nasdaq MRX Options matched market share		3.2	%		2.0	%		2.6	%		1.7	%
	Total matched market share executed on Nasdaq’s exchanges		30.2	%		31.7	%		29.6	%		31.0	%
	Nasdaq Nordic and Nasdaq Baltic options and futures
	Total average daily volume of options and futures contracts ⁽⁸⁾		213,911			245,986			235,137			298,785

	Cash Equity Trading
	Total U.S.-listed securities
	Total industry average daily share volume (in billions)		11.5			10.4			11.7			11.0
	Matched share volume (in billions)		117.4			106.7			354.3			342.2
	The Nasdaq Stock Market matched market share		15.6	%		15.5	%		15.6	%		15.9	%
	Nasdaq BX matched market share		0.3	%		0.4	%		0.4	%		0.4	%
	Nasdaq PSX matched market share		0.2	%		0.3	%		0.2	%		0.4	%
	Total matched market share executed on Nasdaq’s exchanges		16.1	%		16.2	%		16.2	%		16.7	%
	Market share reported to the FINRA/Nasdaq Trade Reporting Facility		44.7	%		40.2	%		43.0	%		35.2	%
	Total market share ⁽⁹⁾		60.8	%		56.4	%		59.2	%		51.9	%
	Nasdaq Nordic and Nasdaq Baltic securities
	Average daily number of equity trades executed on Nasdaq’s exchanges		609,167			556,257			645,622			676,132
	Total average daily value of shares traded (in billions)	$	4.1		$	3.6		$	4.5		$	4.5
	Total market share executed on Nasdaq’s exchanges		71.6	%		71.6	%		72.2	%		70.6	%

	Fixed Income and Commodities Trading and Clearing
	Fixed Income
	Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts		89,037			88,383			94,493			96,461

	(1) Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature, or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.

	(2) New listings include IPOs, issuers that switched from other listing venues, closed-end funds and separately listed ETPs. For the three months ended September 30, 2024 and 2023, IPOs included 15 and 4 SPACs, respectively. For the nine months ended September 30, 2024 and 2023, IPOs included 28 and 19 SPACs, respectively.

	(3) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.

	(4) Number of total listings on The Nasdaq Stock Market for the nine months ended September 30, 2024 and September 30, 2023 included 712 and 570 ETPs, respectively.

	(5) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.

	(6) The number of listed ETPs as of September 30, 2023 has been updated to reflect a revised methodology whereby an ETP listed on multiple exchanges is counted as one product, rather than formerly being counted per exchange. This change has no impact on reported AUM.

	(7) Trailing 12-months.

	(8) Includes Finnish option contracts traded on Eurex for which Nasdaq and Eurex had a revenue sharing arrangement, which ended in the fourth quarter of 2023.

	(9) Includes transactions executed on The Nasdaq Stock Market’s, Nasdaq BX’s and Nasdaq PSX’s systems plus trades reported through the Financial Industry Regulatory Authority/Nasdaq Trade Reporting Facility.

The MIL Network –

January 25, 2025

MIL-OSI: Virtu Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the third quarter ended September 30, 2024.

Third Quarter 2024:

Net income of $119.0 million; Normalized Adjusted Net Income¹ of $132.1 million
Basic and diluted earnings per share of $0.65 and $0.64, respectively; Normalized Adjusted EPS¹ of $0.82
Total revenues of $706.8 million; Trading income, net, of $444.0 million; Net income Margin of 16.8%²
- Adjusted Net Trading Income¹ of $388.0 million
Adjusted EBITDA¹ of $214.8 million; Adjusted EBITDA Margin¹ of 55.4%
Share buybacks of $48.4 million, or 1.7 million shares, under the Share Repurchase Program³

The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on December 15, 2024 to shareholders of record as of December 1, 2024.

Note 1: Non-GAAP financial measures. Please see “Non-GAAP Financial Measures and Other Items” for more information.
Note 2: Calculated by dividing Net income by Total revenue
Note 3: Shares repurchased calculated on a settlement date basis.

Financial Results

Third Quarter 2024:

Total revenues increased 12.2% to $706.8 million for this quarter, compared to $630.2 million for the same period in 2023. Trading income, net, increased 40.5% to $444.0 million for the quarter compared to $316.1 million for the same period in 2023. Net income totaled $119.0 million for this quarter, compared to net income of $117.6 million in the prior year quarter.

Basic and diluted earnings per share for this quarter were $0.65 and $0.64, respectively, compared to basic and diluted earnings per share of $0.63 and $0.63, respectively, for the same period in 2023.

Adjusted Net Trading Income increased 30.2% to $388.0 million for this quarter, compared to $298.0 million for the same period in 2023. Adjusted EBITDA increased 54.0% to $214.8 million for this quarter, compared to $139.5 million for the same period in 2023. Normalized Adjusted Net Income, removing one-time and non-cash items, increased 76.8% to $132.1 million for this quarter, compared to $74.7 million for the same period in 2023.

Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.82 for this quarter, compared to $0.45 for the same period in 2023.

Operating Segment Information

The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company’s capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

Corporate contains the Company’s investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and nine months ended September 30, 2024 and 2023.

Total revenues by segment
(in thousands, unaudited)

	Three Months Ended September 30, 2024								Three Months Ended September 30, 2023
	Market Making		Execution Services		Corporate		Total		Market Making		Execution Services		Corporate		Total
Trading income, net	$	440,442	$	3,555	$	—	$	443,997	$	310,523	$	5,562	$	—	$	316,085
Commissions, net and technology services		12,721		118,900		—		131,621		6,343		103,933		—		110,276
Interest and dividends income		122,065		3,164		—		125,229		124,803		2,890		—		127,693
Other, net		1,432		108		4,453		5,993		75,682		68		360		76,110
Total Revenues	$	576,660	$	125,727	$	4,453	$	706,840	$	517,351	$	112,453	$	360	$	630,164


	Nine Months Ended September 30, 2024								Nine Months Ended September 30, 2023
	Market Making		Execution Services		Corporate		Total		Market Making		Execution Services		Corporate			Total
Trading income, net	$	1,264,214	$	14,273	$	—	$	1,278,487	$	1,021,179	$	13,585	$	—		$	1,034,764
Commissions, net and technology services		29,203		347,130		—		376,333		22,677		318,546		—			341,223
Interest and dividends income		330,178		8,109		—		338,287		300,086		7,830		—			307,916
Other, net		43,855		1,063		4,639		49,557		77,580		84		(4,171	)		73,493
Total Revenues	$	1,667,450	$	370,575	$	4,639	$	2,042,664	$	1,421,522	$	340,045	$	(4,171	)	$	1,757,396

Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
(in thousands, unaudited)

	Three Months Ended September 30, 2024											Three Months Ended September 30, 2023
	Market Making			Execution Services			Corporate		Total			Market Making			Execution Services			Corporate		Total
Trading income, net	$	440,442		$	3,555		$	—	$	443,997		$	310,523		$	5,562		$	—	$	316,085
Commissions, net and technology services		12,721			118,900			—		131,621			6,343			103,933			—		110,276
Interest and dividends income		122,065			3,164			—		125,229			124,803			2,890			—		127,693
Brokerage, exchange, clearance fees and payments for order flow, net		(152,316	)		(24,429	)		—		(176,745	)		(101,077	)		(22,168	)		—		(123,245	)
Interest and dividends expense		(134,912	)		(1,158	)		—		(136,070	)		(132,523	)		(279	)		—		(132,802	)
Adjusted Net Trading Income	$	288,000		$	100,032		$	—	$	388,032		$	208,069		$	89,938		$	—	$	298,007

	Nine Months Ended September 30, 2024											Nine Months Ended September 30, 2023
	Market Making			Execution Services			Corporate		Total			Market Making			Execution Services			Corporate		Total
Trading income, net	$	1,264,214		$	14,273		$	—	$	1,278,487		$	1,021,179		$	13,585		$	—	$	1,034,764
Commissions, net and technology services		29,203			347,130			—		376,333			22,677			318,546			—		341,223
Interest and dividends income		330,178			8,109			—		338,287			300,086			7,830			—		307,916
Brokerage, exchange, clearance fees and payments for order flow, net		(394,154	)		(73,177	)		—		(467,331	)		(323,868	)		(67,370	)		—		(391,238	)
Interest and dividends expense		(382,200	)		(3,591	)		—		(385,791	)		(340,954	)		(1,942	)		—		(342,896	)
Adjusted Net Trading Income	$	847,241		$	292,744		$	—	$	1,139,985		$	679,120		$	270,649		$	—	$	949,769

Financial Condition

As of September 30, 2024, Virtu had $738.2 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,769.4 million.

Share Repurchase Program

Since inception of the program in November 2020 through settlement date October 22, 2024, the Company repurchased approximately 49.2 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,240.7 million. The Company has approximately $479.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

Earnings Conference Call Information

Virtu Financial will host a conference call to review its third quarter 2024 financial performance today, October 24th, at 8:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

Website Information

We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Financial Measures and Other Items

To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), we use the following non-GAAP measures of financial performance:

“Adjusted Net Trading Income”, which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.

“EBITDA”, which measures our operating performance by adjusting Net Income to exclude Financing interest expense on long-term borrowings, Debt issue cost related to debt refinancing, prepayment, and commitment fees, Depreciation and amortization, Amortization of purchased intangibles and acquired capitalized software, and Income tax expense, and “Adjusted EBITDA”, which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share-based compensation and other expenses, which includes reserves for legal matters, and Other, net, which includes gains and losses from strategic investments and the sales of businesses.

“Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items, and other non-cash items, assuming that all vested and unvested Virtu Financial Units have been exchanged for Class A Common Stock, and applying an effective tax rate, which was approximately 24%.

“Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except share and per share data)		2024			2023			2024			2023

Revenues:
Trading income, net	$	443,997		$	316,085		$	1,278,487		$	1,034,764
Interest and dividends income		125,229			127,693			338,287			307,916
Commissions, net and technology services		131,621			110,276			376,333			341,223
Other, net		5,993			76,110			49,557			73,493
Total revenues		706,840			630,164			2,042,664			1,757,396

Operating Expenses:
Brokerage, exchange, clearance fees and payments for order flow, net		176,745			123,245			467,331			391,238
Communication and data processing		59,601			57,066			177,110			170,837
Employee compensation and payroll taxes		107,646			97,221			314,185			296,214
Interest and dividends expense		136,070			132,802			385,791			342,896
Operations and administrative		24,939			22,416			69,346			72,204
Depreciation and amortization		16,486			15,815			48,640			47,076
Amortization of purchased intangibles and acquired capitalized software		11,848			15,967			38,688			48,007
Termination of office leases		17			364			50			314
Debt issue cost related to debt refinancing, prepayment and commitment fees		1,767			1,796			27,740			5,744
Transaction advisory fees and expenses		69			6			264			30
Financing interest expense on long-term borrowings		24,492			25,361			71,154			74,499
Total operating expenses		559,680			492,059			1,600,299			1,449,059

Income before income taxes and noncontrolling interest		147,160			138,105			442,365			308,337
Provision for income taxes		28,137			20,512			83,917			51,117
Net income	$	119,023		$	117,593		$	358,448		$	257,220

Noncontrolling interest		(59,071	)		(55,678	)		(176,093	)		(120,722	)

Net income available for common stockholders	$	59,952		$	61,915		$	182,355		$	136,498

Earnings per share:
Basic	$	0.65		$	0.63		$	1.95		$	1.36
Diluted	$	0.64		$	0.63		$	1.95		$	1.36

Weighted average common shares outstanding
Basic		87,152,658			93,408,537			88,093,082			95,376,590
Diluted		87,536,847			93,408,537			88,340,592			95,376,590

Comprehensive income:
Net income	$	119,023		$	117,593		$	358,448		$	257,220
Other comprehensive income
Foreign exchange translation adjustment, net of taxes		6,835			(4,005	)		3,745			170
Net change in unrealized cash flow hedges gain (loss), net of taxes		(19,568	)		(7,646	)		(30,931	)		(12,612	)
Comprehensive income	$	106,290		$	105,942		$	331,262		$	244,778
Less: Comprehensive income attributable to noncontrolling interest		(54,083	)		(50,832	)		(164,990	)		(115,557	)
Comprehensive income available for common stockholders	$	52,207		$	55,110		$	166,272		$	129,221

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)

The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except percentages)		2024			2023			2024			2023

Reconciliation of Trading income, net to Adjusted Net Trading Income
Trading income, net	$	443,997		$	316,085		$	1,278,487		$	1,034,764
Commissions, net and technology services		131,621			110,276			376,333			341,223
Interest and dividends income		125,229			127,693			338,287			307,916
Brokerage, exchange, clearance fees and payments for order flow, net		(176,745	)		(123,245	)		(467,331	)		(391,238	)
Interest and dividends expense		(136,070	)		(132,802	)		(385,791	)		(342,896	)
Adjusted Net Trading Income	$	388,032		$	298,007		$	1,139,985		$	949,769

Reconciliation of Net Income to EBITDA and Adjusted EBITDA
Net income		119,023			117,593			358,448			257,220
Financing interest expense on long-term borrowings		24,492			25,361			71,154			74,499
Debt issue cost related to debt refinancing, prepayment and commitment fees		1,767			1,796			27,740			5,744
Depreciation and amortization		16,486			15,815			48,640			47,076
Amortization of purchased intangibles and acquired capitalized software		11,848			15,967			38,688			48,007
Provision for income taxes		28,137			20,512			83,917			51,117
EBITDA	$	201,753		$	197,044		$	628,587		$	483,663
Severance		690			1,346			3,651			5,256
Transaction advisory fees and expenses		69			6			264			30
Termination of office leases		17			364			50			314
Other		(5,669	)		(74,599	)		(48,334	)		(67,396	)
Share based compensation		17,945			15,353			50,941			47,108
Adjusted EBITDA	$	214,805		$	139,514		$	635,159		$	468,975

Selected Operating Margins
GAAP Net income Margin (1)		16.8	%		18.7	%		17.5	%		14.6	%
Non-GAAP Net income Margin (2)		30.7	%		39.5	%		31.4	%		27.1	%
EBITDA Margin (3)		52.0	%		66.1	%		55.1	%		50.9	%
Adjusted EBITDA Margin (4)		55.4	%		46.8	%		55.7	%		49.4	%

1 Calculated by dividing Net income by Total revenue.
2 Calculated by dividing Net income by Adjusted Net Trading Income.
3 Calculated by dividing EBITDA by Adjusted Net Trading Income.
4 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.

Virtu Financial, Inc. and Subsidiaries
Reconciliation to Non-GAAP Operating Data (Unaudited)
(Continued)

The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands, except share and per share data)		2024			2023			2024			2023

Reconciliation of Net Income to Normalized Adjusted Net Income
Net income	$	119,023		$	117,593		$	358,448		$	257,220
Provision for income taxes		28,137			20,512			83,917			51,117
Income before income taxes and noncontrolling interest	$	147,160		$	138,105		$	442,365		$	308,337
Amortization of purchased intangibles and acquired capitalized software		11,848			15,967			38,688			48,007
Debt issue cost related to debt refinancing, prepayment and commitment fees		1,767			1,796			27,740			5,744
Severance		690			1,346			3,651			5,256
Transaction advisory fees and expenses		69			6			264			30
Termination of office leases		17			364			50			314
Other		(5,669	)		(74,599	)		(48,334	)		(67,396	)
Share based compensation		17,945			15,353			50,941			47,108
Normalized Adjusted Net Income before income taxes	$	173,827		$	98,338		$	515,365		$	347,400
Normalized provision for income taxes (1)		41,719			23,601			123,688			83,374
Normalized Adjusted Net Income	$	132,108		$	74,737		$	391,677		$	264,026

Weighted Average Adjusted shares outstanding (2)		161,709,295			167,164,049			162,322,747			169,101,067

Normalized Adjusted EPS	$	0.82		$	0.45		$	2.41		$	1.56

(1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
(2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company’s Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company’s Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company’s Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from the dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan during the three and six months ended September 30, 2024 and 2023.

Virtu Financial, Inc. and Subsidiaries Condensed Consolidated Statements of Financial Condition (Unaudited)

(in thousands, except share data)	September 30, 2024		December 31, 2023

Assets
Cash and cash equivalents	$	701,405	$	820,436
Cash and securities segregated under regulations and other		36,823		35,024
Securities borrowed		2,301,690		1,722,440
Securities purchased under agreements to resell		708,773		1,512,114
Receivables from broker-dealers and clearing organizations		1,194,193		737,724
Receivables from customers		169,565		106,245
Trading assets, at fair value		7,186,027		7,358,611
Property, equipment and capitalized software, net		93,899		100,365
Operating lease right-of-use assets		190,261		229,499
Goodwill		1,148,926		1,148,926
Intangibles (net of accumulated amortization)		214,971		257,520
Deferred taxes		122,399		133,760
Assets of business held for sale		4,637		—
Other assets		327,137		303,720
Total assets		14,400,706		14,466,384

Liabilities and equity
Liabilities
Short-term borrowings, net		128,761		—
Securities loaned		2,109,164		1,329,446
Securities sold under agreements to repurchase		1,045,811		1,795,994
Payables to broker-dealers and clearing organizations		619,640		1,167,712
Payables to customers		97,774		23,229
Trading liabilities, at fair value		6,335,171		6,071,352
Tax receivable agreement obligations		196,254		216,480
Accounts payable and accrued expenses and other liabilities		469,796		451,293
Operating lease liabilities		236,253		278,317
Long-term borrowings, net		1,741,543		1,727,205
Liabilities of business held for sale		1,184		—
Total liabilities		12,981,351		13,061,028

Total equity		1,419,355		1,405,356

Total liabilities and equity	$	14,400,706	$	14,466,384

	As of September 30, 2024
Ownership of Virtu Financial LLC Interests:	Interests		%
Virtu Financial, Inc. – Class A Common Stock and Restricted Stock Units		91,902,168		57.2	%
Non-controlling Interests (Virtu Financial LLC)		68,666,792		42.8	%
Total Virtu Financial LLC Interests		160,568,960		100.0	%

About Virtu Financial, Inc.

Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties, clients, and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; potential consequences of recent SEC proposals focused on equity markets which may, if adopted, result in reduced overall and off-exchange trading volumes and market making opportunities, impose additional or heightened regulatory obligations on market makers and other market participants, and generally increase the implicit and explicit cost as well as the complexity of the U.S. equities eco-system for all participants; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

CONTACT

Investor & Media Relations
Andrew Smith
investor_relations@virtu.com
media@virtu.com

The MIL Network –

January 25, 2025

MIL-OSI: Valley National Bancorp Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the third quarter 2024 of $97.9 million, or $0.18 per diluted common share, as compared to the second quarter 2024 net income of $70.4 million, or $0.13 per diluted common share, and net income of $141.3 million, or $0.27 per diluted common share, for the third quarter 2023. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $96.8 million, or $0.18 per diluted common share, for the third quarter 2024, $71.6 million, or $0.13 per diluted common share, for the second quarter 2024, and $136.4 million, or $0.26 per diluted common share, for the third quarter 2023. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

Ira Robbins, CEO, commented, “The third quarter’s financial results highlight the significant progress that we continue to make towards achieving our strategic balance sheet goals. On October 23, 2024, we entered into an agreement to sell performing commercial real estate loans expected to total over $800 million at a very modest discount of approximately 1 percent to a single investor. This economically compelling transaction is expected to close in the fourth quarter 2024 and reflects the strength and desirability of our commercial real estate portfolio. We have executed on a variety of strategic transactions this year that have notably strengthened our balance sheet and enhanced our financial flexibility.”

Mr. Robbins continued, “This quarter’s results also indicated the early stages of normalized profitability which we expect will accelerate as we enter 2025. Net interest income and non-interest income both improved meaningfully from the second quarter 2024, and our operating expenses were well-controlled and effectively unchanged on a year-over-year basis. While recent weather events weighed on the sequential provision improvement that we anticipated, our pre-provision earnings continued to improve during the third quarter and could set the stage for more stable results in the near future. And most importantly, our thoughts are with those affected by the recent hurricanes in our Florida markets and the other areas in the southeast. We are strongly committed to supporting our associates, clients and communities throughout the rebuilding and recovery process.”

Key financial highlights for the third quarter 2024:

Net Interest Income and Margin: Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Our net interest margin on a tax equivalent basis also increased by 2 basis points to 2.86 percent in the third quarter 2024 as compared to 2.84 percent for the second quarter 2024. The increases from the second quarter 2024 were mostly due to continued yield expansion on average loans and additional interest income and higher yields from targeted growth within our available for sale securities portfolio. See the “Net Interest Income and Margin” section below for more details.
Loan Portfolio: Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024 mostly due to the transfer of performing commercial real estate loans totaling $823.1 million, net of unearned fees, to loans held for sale at September 30, 2024 and normal repayment activity mainly within the commercial real estate non-owner occupied and multi-family loans, as we continue to actively reduce these loan categories. Our commercial and industrial loans grew $320.1 million, or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 due to solid organic growth during the third quarter 2024. Residential mortgage and total consumer loans also increased modestly during the third quarter 2024. See the “Loans” section below for more details.
Deposits: Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 as compared to $50.1 billion at June 30, 2024 mainly due to higher period-end direct commercial customer money market and non-interest bearing deposits, partially offset by a decline in time deposits. See the “Deposits” section below for more details.
Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $564.7 million and $532.5 million at September 30, 2024 and June 30, 2024, respectively, representing 1.14 percent and 1.06 percent of total loans at each respective date. During the third quarter 2024, we recorded a provision for credit losses for loans of $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The third quarter 2024 provision reflects, among other factors, increased quantitative reserves allocated to commercial real estate loans, significant commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene, which hit Florida in late September 2024.
Credit Quality: Non-accrual loans totaled $296.3 million, or 0.60 percent of total loans at September 30, 2024 as compared to $303.3 million, or 0.60 percent of total loans at June 30, 2024. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased to 0.35 percent of total loans at September 30, 2024 as compared to 0.14 percent at June 30, 2024 largely due to two well-secured commercial real estate loans at various stages of expected collection within the early stage delinquency categories. Net loan charge-offs totaled $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and third quarter 2023, respectively. The loan charge-offs in the third quarter 2024 included partial charge-offs totaling a combined $30.1 million related to two commercial real estate loan relationships. See the “Credit Quality” section below for more details.
Non-Interest Income: Non-interest income increased $9.5 million to $60.7 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to increases in other income; wealth management and trust fees; and service charges on deposits totaling $11.2 million, $2.0 million, and $1.6 million, respectively. The increases in the aforementioned categories were partially offset by a $5.8 million mark to market loss (recorded within net losses on sales of loans) associated with the performing commercial real estate loans transferred to loans held for sale at September 30, 2024, as well as lower swap fees related to commercial loan transactions (within capital market fees) and insurance commissions. The increase in other income was mostly the result of income from litigation settlements totaling $7.3 million for the third quarter 2024.
Non-Interest Expense: Non-interest expense decreased $8.0 million to $269.5 million for the third quarter 2024 as compared to the second quarter 2024 largely due to a $6.2 million decrease in technology, furniture and equipment expense and a $3.8 million decrease in professional and legal expenses, partially offset by higher net occupancy expense during the third quarter 2024.
Efficiency Ratio: Our efficiency ratio was 56.13 percent for the third quarter 2024 as compared to 59.62 percent and 56.72 percent for the second quarter 2024 and third quarter 2023, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.63 percent, 5.70 percent and 8.06 percent for the third quarter 2024, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core income and charges, were 0.62 percent, 5.64 percent and 7.97 percent for the third quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

Net Interest Income and Margin

Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Interest income on a tax equivalent basis increased $27.1 million to $861.9 million for the third quarter 2024 as compared to the second quarter 2024. The increase was mostly due to higher yields on both new loan originations and adjustable rate loans, as well as higher yields and additional interest income from targeted purchases of taxable investments within the available for sale securities portfolio during the second and third quarter 2024. Total interest expense increased $18.3 million to $450.1 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to an increase in average time deposit balances coupled with higher costs on most interest bearing deposit products. See the “Deposits” and “Other Borrowings” sections below for more details.

Net interest margin on a tax equivalent basis of 2.86 percent for the third quarter 2024 increased by 2 basis points from 2.84 percent for the second quarter 2024 and decreased 5 basis points from 2.91 percent for the third quarter 2023. The increase as compared to the second quarter 2024 was largely driven by the higher yield on average interest earning assets largely offset by an increase in the cost of average interest bearing liabilities. The yield on average interest earning assets increased by 10 basis points to 5.98 percent on a linked quarter basis largely due to higher yielding investment purchases and new loan originations during the second and third quarter 2024. The overall cost of average interest bearing liabilities increased 7 basis points to 4.22 percent for the third quarter 2024 as compared to the second quarter 2024 largely due to higher interest rates on deposits. Our cost of total average deposits was 3.25 percent for the third quarter 2024 as compared to 3.18 percent and 2.94 percent for the second quarter 2024 and the third quarter 2023, respectively.

Loans, Deposits and Other Borrowings

Loans. Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024. Commercial and industrial loans grew by $320.1 million , or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 largely due to our continued strategic focus on the expansion of new loan production within this category. Total commercial real estate (including construction) loans decreased $1.4 billion to $30.4 billion at September 30, 2024 from June 30, 2024. This decline was primarily driven by the transfer of $823.1 million of commercial real estate loans, net of unearned loan fees, from the loans held for investment portfolio to loans held for sale as of September 30, 2024. In addition, we remained highly selective on new originations and projects in an effort to reduce commercial real estate loan concentrations, mainly within the non-owner occupied and multifamily loan categories. Automobile loan balances increased by $60.9 million, or 13.8 percent on an annualized basis, to $1.8 billion at September 30, 2024 from June 30, 2024 mainly due to continued consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Other consumer loans decreased $42.4 million, or 15.3 percent on an annualized basis, to $1.1 billion at September 30, 2024 from June 30, 2024 primarily due to the negative impact of the high level of market interest rates on the demand and usage of collateralized personal lines of credit.

Deposits. Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 from June 30, 2024 mainly due to an increase of $358.3 million in savings, NOW and money market deposits and an increase of $36.0 million in non-interest bearing deposits, partially offset by a decrease of $110.5 million in time deposits. Non-interest bearing deposit and savings, NOW and money market deposit balances increased at September 30, 2024 from June 30, 2024 mostly due to increases in national specialized deposits and higher direct commercial customer deposit accounts. Total indirect customer deposits (including both brokered money market and time deposits) totaled $9.1 billion in both September 30, 2024 and June 30, 2024. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 22 percent, 50 percent and 28 percent of total deposits as of September 30, 2024, respectively, as compared to 22 percent, 49 percent and 29 percent of total deposits as of June 30, 2024, respectively.

Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $5.5 million to $58.3 million at September 30, 2024 from June 30, 2024. Long-term borrowings totaled $3.3 billion at September 30, 2024 and also remained relatively unchanged as compared to June 30, 2024.

Credit Quality

Hurricanes Helene and Milton. In the early stages of the fourth quarter 2024, the credit quality of our Florida loan portfolio has remained resilient in the aftermath of Hurricane Helene, which hit Florida in late September 2024, and Hurricane Milton, which made landfall on October 9, 2024. At this time, there have been relatively few loan concessions (mostly in the form of loan payment deferrals up to 90 days) for distressed borrowers impacted by the hurricanes. However, we continue to assess the impact of the hurricanes on our Florida client base and, where appropriate, we will work constructively with individual borrowers.

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $7.8 million to $305.1 million at September 30, 2024 as compared to June 30, 2024. Non-accrual loans decreased $7.0 million to $296.3 million at September 30, 2024 as compared to $303.3 million at June 30, 2024. Non-accrual construction and commercial real estate loans decreased $20.7 million and $9.3 million to $24.7 million and $113.8 million, respectively, at September 30, 2024 as compared to June 30, 2024 mainly due to loan payoffs during the third quarter 2024. The decreases in these loan categories were partially offset by two new non-accrual commercial and industrial loans totaling $19.0 million, as well as moderate increases in non-accrual residential mortgage and consumer loans at September 30, 2024. OREO decreased $887 thousand at September 30, 2024 from June 30, 2024 mostly due to the sale of one commercial property, which resulted in the recognition of an immaterial loss for the third quarter 2024.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $102.3 million to $174.7 million, or 0.35 percent of total loans, at September 30, 2024 as compared to $72.4 million, or 0.14 percent of total loans at June 30, 2024. Loans 30 to 59 days past due increased $69.1 million to $115.1 million at September 30, 2024 as compared to June 30, 2024 mainly due to a $74.5 million increase in commercial real estate loans, partially offset by a $7.0 million decline in consumer loan delinquencies. The increase in commercial real estate loans 30 to 59 days past due was mostly due to one new delinquent loan totaling $40.9 million, which is expected to be fully repaid, subject to the borrower’s pending sale of certain collateral, as well as a few other new loan delinquencies. Loans 60 to 89 days past due increased $42.9 million to $54.8 million at September 30, 2024 as compared to June 30, 2024 mostly due to one well-secured commercial real estate loan totaling $43.9 million currently in the process of loan modification. Loans 90 days or more past due and still accruing interest decreased $9.7 million to $4.8 million at September 30, 2024 as compared to June 30, 2024 largely due to one $4.0 million construction loan that was fully repaid and one $4.2 million commercial real estate loan that migrated from this past due category to non-accrual loans during the third quarter 2024. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at September 30, 2024, June 30, 2024 and September 30, 2023:

		September 30, 2024				June 30, 2024				September 30, 2023
				Allocation				Allocation				Allocation
				as a % of				as a % of				as a % of
		Allowance		Loan		Allowance		Loan		Allowance		Loan
		Allocation		Category		Allocation		Category		Allocation		Category
		($ in thousands)
Loan Category:
Commercial and industrial loans		$	166,365	1.70	%	$	149,243	1.57	%	$	133,988	1.44	%
Commercial real estate loans:
	Commercial real estate		249,608	0.93			246,316	0.87			191,562	0.68
	Construction		59,420	1.70			54,777	1.54			53,485	1.40
Total commercial real estate loans			309,028	1.02			301,093	0.95			245,047	0.77
Residential mortgage loans			51,545	0.91			47,697	0.85			44,621	0.80
Consumer loans:
	Home equity		3,303	0.57			3,077	0.54			3,689	0.67
	Auto and other consumer		18,086	0.63			18,200	0.63			14,830	0.52
Total consumer loans			21,389	0.62			21,277	0.62			18,519	0.55
Allowance for loan losses			548,327	1.11			519,310	1.03			442,175	0.88
Allowance for unfunded credit commitments			16,344				13,231				20,170
Total allowance for credit losses for loans		$	564,671			$	532,541			$	462,345
Allowance for credit losses for loans as a % total loans				1.14	%			1.06	%			0.92	%

Our loan portfolio, totaling $49.4 billion at September 30, 2024, had net loan charge-offs totaling $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and the third quarter 2023, respectively. Total gross loan charge-offs in the third quarter 2024 included partial charge-offs totaling $30.1 million related to two non-performing commercial real estate loan relationships that had combined specific reserves of $25.9 million within the allowance for loan losses at June 30, 2024.

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.14 percent at September 30, 2024, 1.06 percent at June 30, 2024, and 0.92 percent at September 30, 2023. For the third quarter 2024, the provision for credit losses for loans totaled $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The provision for credit losses remained somewhat elevated for the third quarter 2024 largely due to higher quantitative reserves allocated to commercial real estate loans, commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene.

The allowance for unfunded credit commitments increased to $16.3 million at September 30, 2024 from $13.2 million at June 30, 2024 mainly due to increases in both non-cancellable construction commitments and commercial and industrial standby letters of credit.

As previously noted, we are currently evaluating the impact of Hurricane Milton, and we also continue to evaluate any further impact of Hurricane Helene, on our loan portfolio. While not anticipated based on information currently available, Hurricane Milton and unexpected losses from Hurricane Helene could result in a significant increase to the current hurricane related reserves within the allowance, loan charge-offs and our provision for the fourth quarter 2024.

Capital Adequacy

Valley’s total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 12.56 percent, 9.57 percent, 10.29 percent and 8.40 percent, respectively, at September 30, 2024 as compared to 12.18 percent, 9.55 percent, 9.99 percent and 8.19 percent, respectively, at June 30, 2024. The increases in the total risk-based capital, Tier 1 capital and Tier 1 leverage ratios as compared to June 30, 2024 were largely due to Valley’s issuance of 6.0 million shares of its 8.250 percent Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C on August 5, 2024. Net proceeds to Valley after deducting underwriting discounts, commissions and offering expenses were approximately $144.7 million.

Investor Conference Call

Valley will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss the third quarter 2024 earnings and related matters. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, December 2, 2024. Investor presentation materials will be made available prior to the conference call at www.valley.com.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Care Center at 800-522-4100.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with the prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
the impact of unfavorable macroeconomic conditions or downturns, including an actual or threatened U.S. government shutdown, debt default or rating downgrade, instability or volatility in financial markets, unanticipated loan delinquencies, loss of collateral, decreased service revenues, increased business disruptions or failures, reductions in employment, and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as the outcome of the 2024 U.S. presidential election, geopolitical instabilities or events (including the Israel-Hamas war and the escalation and regional expansion thereof); natural and other disasters (including severe weather events, such as Hurricanes Helene and Milton); health emergencies; acts of terrorism; or other external events;
the impact of potential instability within the U.S. financial sector in the aftermath of the banking failures in 2023 and continued volatility thereafter, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
changes in the statutes, regulations, policy, or enforcement priorities of the federal bank regulatory agencies;
the loss of or decrease in lower-cost funding sources within our deposit base;
damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;
a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
the inability to grow customer deposits to keep pace with loan growth;
a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks;
results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;
our ability to successfully execute our business plan and strategic initiatives; and
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.

A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

-Tables to Follow-

VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

SELECTED FINANCIAL DATA

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands, except for share data and stock price)	2024			2024			2023			2024			2023
FINANCIAL DATA:
Net interest income – FTE⁽¹⁾	$	411,812		$	402,984		$	413,657		$	1,209,643		$	1,272,390
Net interest income	$	410,498		$	401,685		$	412,418		$	1,205,731		$	1,268,203
Non-interest income		60,671			51,213			58,664			173,299			173,038
Total revenue		471,169			452,898			471,082			1,379,030			1,441,241
Non-interest expense		269,471			277,497			267,133			827,278			822,270
Pre-provision net revenue		201,698			175,401			203,949			551,752			618,971
Provision for credit losses		75,024			82,070			9,117			202,294			29,604
Income tax expense		28,818			22,907			53,486			84,898			162,410
Net income		97,856			70,424			141,346			264,560			426,957
Dividends on preferred stock		6,117			4,108			4,127			14,344			12,031
Net income available to common shareholders	$	91,739		$	66,316		$	137,219		$	250,216		$	414,926
Weighted average number of common shares outstanding:
Basic		509,227,538			509,141,252			507,650,668			508,904,353			507,580,197
Diluted		511,342,932			510,338,502			509,256,599			510,713,205			509,204,051
Per common share data:
Basic earnings	$	0.18		$	0.13		$	0.27		$	0.49		$	0.82
Diluted earnings		0.18			0.13			0.27			0.49			0.81
Cash dividends declared		0.11			0.11			0.11			0.33			0.33
Closing stock price – high		9.34			8.02			10.30			10.80			12.59
Closing stock price – low		6.58			6.52			7.63			6.52			6.59
FINANCIAL RATIOS:
Net interest margin		2.85	%		2.83	%		2.90	%		2.82	%		2.99	%
Net interest margin – FTE⁽¹⁾		2.86			2.84			2.91			2.83			3.00
Annualized return on average assets		0.63			0.46			0.92			0.57			0.93
Annualized return on avg. shareholders’ equity		5.70			4.17			8.56			5.20			8.72
NON-GAAP FINANCIAL DATA AND RATIOS:⁽²⁾
Basic earnings per share, as adjusted	$	0.18		$	0.13		$	0.26		$	0.50		$	0.84
Diluted earnings per share, as adjusted		0.18			0.13			0.26			0.50			0.84
Annualized return on average assets, as adjusted		0.62	%		0.47	%		0.89	%		0.58	%		0.96	%
Annualized return on average shareholders’ equity, as adjusted		5.64			4.24			8.26			5.27			8.94
Annualized return on avg. tangible shareholders’ equity		8.06			5.95			12.39			7.40			12.71
Annualized return on average tangible shareholders’ equity, as adjusted		7.97			6.05			11.95			7.50			13.04
Efficiency ratio		56.13			59.62			56.72			58.26			55.34

AVERAGE BALANCE SHEET ITEMS:
Assets	$	62,242,022		$	61,518,639		$	61,391,688		$	61,674,588		$	61,050,973
Interest earning assets		57,651,650			56,772,950			56,802,565			57,016,790			56,510,997
Loans		50,126,963			50,020,901			50,019,414			50,131,468			49,120,153
Interest bearing liabilities		42,656,956			41,576,344			40,829,078			41,932,616			39,802,966
Deposits		50,409,234			49,383,209			49,848,446			49,459,617			48,165,152
Shareholders’ equity		6,862,555			6,753,981			6,605,786			6,781,022			6,531,424

	As Of
BALANCE SHEET ITEMS:	September 30,			June 30,			March 31,			December			September 30,
(In thousands)	2024			2024			2024			2023			2023
Assets	$	62,092,332		$	62,058,974		$	61,000,188		$	60,934,974		$	61,183,352
Total loans		49,355,319			50,311,702			49,922,042			50,210,295			50,097,519
Deposits		50,395,966			50,112,177			49,077,946			49,242,829			49,885,314
Shareholders’ equity		6,972,380			6,737,737			6,727,139			6,701,391			6,627,299

LOANS:
(In thousands)
Commercial and industrial	$	9,799,287		$	9,479,147		$	9,104,193		$	9,230,543		$	9,274,630
Commercial real estate:
Non-owner occupied		12,647,649			13,710,015			14,962,851			15,078,464			14,741,668
Multifamily		8,612,936			8,976,264			8,818,263			8,860,219			8,863,529
Owner occupied		5,654,147			5,536,844			4,367,839			4,304,556			4,435,853
Construction		3,487,464			3,545,723			3,556,511			3,726,808			3,833,269
Total commercial real estate		30,402,196			31,768,846			31,705,464			31,970,047			31,874,319
Residential mortgage		5,684,079			5,627,113			5,618,355			5,569,010			5,562,665
Consumer:
Home equity		581,181			566,467			564,083			559,152			548,918
Automobile		1,823,738			1,762,852			1,700,508			1,620,389			1,585,987
Other consumer		1,064,838			1,107,277			1,229,439			1,261,154			1,251,000
Total consumer loans		3,469,757			3,436,596			3,494,030			3,440,695			3,385,905
Total loans	$	49,355,319		$	50,311,702		$	49,922,042		$	50,210,295		$	50,097,519

CAPITAL RATIOS:
Book value per common share	$	13.00		$	12.82		$	12.81		$	12.79		$	12.64
Tangible book value per common share⁽²⁾		9.06			8.87			8.84			8.79			8.63
Tangible common equity to tangible assets⁽²⁾		7.68	%		7.52	%		7.62	%		7.58	%		7.40	%
Tier 1 leverage capital		8.40			8.19			8.20			8.16			8.08
Common equity tier 1 capital		9.57			9.55			9.34			9.29			9.21
Tier 1 risk-based capital		10.29			9.99			9.78			9.72			9.64
Total risk-based capital		12.56			12.18			11.88			11.76			11.68

	Three Months Ended									Nine Months Ended
ALLOWANCE FOR CREDIT LOSSES:	September 30,			June 30,			September 30,			September 30,
($ in thousands)	2024			2024			2023			2024			2023
Allowance for credit losses for loans
Beginning balance	$	532,541		$	487,269		$	458,676		$	465,550		$	483,255
Impact of the adoption of ASU No. 2022-02		—			—			—			—			(1,368	)
Beginning balance, adjusted		532,541			487,269			458,676			465,550			481,887
Loans charged-off:
Commercial and industrial		(7,501	)		(14,721	)		(7,487	)		(36,515	)		(37,399	)
Commercial real estate		(33,292	)		(22,144	)		(255	)		(56,640	)		(2,320	)
Construction		(4,831	)		(212	)		—			(12,637	)		(9,906	)
Residential mortgage		—			—			(20	)		—			(169	)
Total consumer		(2,597	)		(1,262	)		(1,156	)		(5,668	)		(3,024	)
Total loans charged-off		(48,221	)		(38,339	)		(8,918	)		(111,460	)		(52,818	)
Charged-off loans recovered:
Commercial and industrial		3,162			742			3,043			4,586			6,615
Commercial real estate		66			150			5			457			33
Construction		1,535			—			—			1,535			—
Residential mortgage		29			5			30			59			186
Total consumer		521			603			362			1,521			1,513
Total loans recovered		5,313			1,500			3,440			8,158			8,347
Total net charge-offs		(42,908	)		(36,839	)		(5,478	)		(103,302	)		(44,471	)
Provision for credit losses for loans		75,038			82,111			9,147			202,423			24,929
Ending balance	$	564,671		$	532,541		$	462,345		$	564,671		$	462,345
Components of allowance for credit losses for loans:
Allowance for loan losses	$	548,327		$	519,310		$	442,175		$	548,327		$	442,175
Allowance for unfunded credit commitments		16,344			13,231			20,170			16,344			20,170
Allowance for credit losses for loans	$	564,671		$	532,541		$	462,345		$	564,671		$	462,345
Components of provision for credit losses for loans:
Provision for credit losses for loans	$	71,925		$	86,901		$	11,221		$	205,549		$	29,359
Provision (credit) for unfunded credit commitments		3,113			(4,790	)		(2,074	)		(3,126	)		(4,430	)
Total provision for credit losses for loans	$	75,038		$	82,111		$	9,147		$	202,423		$	24,929
Annualized ratio of total net charge-offs to total average loans		0.34	%		0.29	%		0.04	%		0.27	%		0.12	%
Allowance for credit losses for loans as a % of total loans		1.14	%		1.06	%		0.92	%		1.14	%		0.92	%

	As Of
ASSET QUALITY:	September 30,			June 30,			March 31,			December 31,			September 30,
($ in thousands)	2024			2024			2024			2023			2023
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial	$	4,537		$	5,086		$	6,202		$	9,307		$	10,687
Commercial real estate		76,370			1,879			5,791			3,008			8,053
Residential mortgage		19,549			17,389			20,819			26,345			13,159
Total consumer		14,672			21,639			14,032			20,554			15,509
Total 30 to 59 days past due		115,128			45,993			46,844			59,214			47,408
60 to 89 days past due:
Commercial and industrial		1,238			1,621			2,665			5,095			5,720
Commercial real estate		43,926			—			3,720			1,257			2,620
Residential mortgage		6,892			6,632			5,970			8,200			9,710
Total consumer		2,732			3,671			1,834			4,715			1,720
Total 60 to 89 days past due		54,788			11,924			14,189			19,267			19,770
90 or more days past due:
Commercial and industrial		1,786			2,739			5,750			5,579			6,629
Commercial real estate		—			4,242			—			—			—
Construction		—			3,990			3,990			3,990			3,990
Residential mortgage		1,931			2,609			2,884			2,488			1,348
Total consumer		1,063			898			731			1,088			391
Total 90 or more days past due		4,780			14,478			13,355			13,145			12,358
Total accruing past due loans	$	174,696		$	72,395		$	74,388		$	91,626		$	79,536
Non-accrual loans:
Commercial and industrial	$	120,575		$	102,942		$	102,399		$	99,912		$	87,655
Commercial real estate		113,752			123,011			100,052			99,739			83,338
Construction		24,657			45,380			51,842			60,851			62,788
Residential mortgage		33,075			28,322			28,561			26,986			21,614
Total consumer		4,260			3,624			4,438			4,383			3,545
Total non-accrual loans		296,319			303,279			287,292			291,871			258,940
Other real estate owned (OREO)		7,172			8,059			88			71			71
Other repossessed assets		1,611			1,607			1,393			1,444			1,314
Total non-performing assets	$	305,102		$	312,945		$	288,773		$	293,386		$	260,325
Total non-accrual loans as a % of loans		0.60	%		0.60	%		0.58	%		0.58	%		0.52	%
Total accruing past due and non-accrual loans as a % of loans		0.95			0.75			0.72			0.76			0.68
Allowance for losses on loans as a % of non-accrual loans		185.05			171.23			163.33			152.83			170.76

NOTES TO SELECTED FINANCIAL DATA

(1)		Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
(2)		Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

Non-GAAP Reconciliations to GAAP Financial Measures

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands, except for share data)	2024			2024			2023			2024			2023
Adjusted net income available to common shareholders (non-GAAP):
Net income, as reported (GAAP)	$	97,856		$	70,424		$	141,346		$	264,560		$	426,957
Add: FDIC Special assessment ^(a)		—			1,363			—			8,757			—
Add: Losses on available for sale and held to maturity debt securities, net ^(b)		1			4			443			12			476
Add: Restructuring charge ^(c)		—			334			(675	)		954			10,507
Add: Mark to market loss on commercial real estate loans transferred to loans held for sale ^(d)		5,794			—			—			5,794			—
Add: Provision for credit losses for available for sale securities ^(e)		—			—			—			—			5,000
Add: Merger related expenses ^(f)		—			—			—			—			4,133
Less: Litigation settlements ^(g)		(7,334	)		—			—			(7,334	)		—
Less: Gain on sale of commercial premium finance lending division ^(h)		—			—			—			(3,629	)		—
Less: Net gains on sales of office buildings ^(h)		—			—			(6,721	)		—			(6,721	)
Total non-GAAP adjustments to net income		(1,539	)		1,701			(6,953	)		4,554			13,395
Income tax adjustments related to non-GAAP adjustments ⁽ⁱ⁾		437			(482	)		1,970			(1,269	)		(2,378	)
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Dividends on preferred stock		6,117			4,108			4,127			14,344			12,031
Net income available to common shareholders, as adjusted (non-GAAP)	$	90,637		$	67,535		$	132,236		$	253,501		$	425,943
__________
(a) Included in the FDIC insurance expense.
(b) Included in gains (losses) on securities transactions, net.
(c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
(d) Included in (losses) gains on sales of loans, net.
(e) Included in provision for credit losses for available for sale and held to maturity securities (tax disallowed).
(f) Included in salary and employee benefits expense during the first quarter 2023.
(g) Represents recoveries from legal settlements included in other income.
(h) Included in gains (losses) on sales of assets, net within non-interest income.
(i) Calculated using the appropriate blended statutory tax rate for the applicable period.

Adjusted per common share data (non-GAAP):
Net income available to common shareholders, as adjusted (non-GAAP)	$	90,637		$	67,535		$	132,236		$	253,501		$	425,943
Average number of shares outstanding		509,227,538			509,141,252			507,650,668			508,904,353			507,580,197
Basic earnings, as adjusted (non-GAAP)	$	0.18		$	0.13		$	0.26		$	0.50		$	0.84
Average number of diluted shares outstanding		511,342,932			510,338,502			509,256,599			510,713,205			509,204,051
Diluted earnings, as adjusted (non-GAAP)	$	0.18		$	0.13		$	0.26		$	0.50		$	0.84
Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Average shareholders’ equity	$	6,862,555		$	6,753,981		$	6,605,786		$	6,781,022		$	6,531,424
Less: Average goodwill and other intangible assets		2,008,692			2,016,766			2,042,486			2,016,790			2,051,727
Average tangible shareholders’ equity	$	4,853,863		$	4,737,215		$	4,563,300		$	4,764,232		$	4,479,697
Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)		7.97	%		6.05	%		11.95	%		7.50	%		13.04	%

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
($ in thousands, except for share data)	2024			2024			2023			2024			2023
Adjusted annualized return on average assets (non-GAAP):
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Average assets	$	62,242,022		$	61,518,639		$	61,391,688		$	61,674,588		$	61,050,973
Annualized return on average assets, as adjusted (non-GAAP)		0.62	%		0.47	%		0.89	%		0.58	%		0.96	%
Adjusted annualized return on average shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	96,754		$	71,643		$	136,363		$	267,845		$	437,974
Average shareholders’ equity	$	6,862,555		$	6,753,981		$	6,605,786		$	6,781,022		$	6,531,424
Annualized return on average shareholders’ equity, as adjusted (non-GAAP)		5.64	%		4.24	%		8.26	%		5.27	%		8.94	%
Annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as reported (GAAP)	$	97,856		$	70,424		$	141,346		$	264,560		$	426,957
Average shareholders’ equity	$	6,862,555		$	6,753,981		$	6,605,786		$	6,781,022		$	6,531,424
Less: Average goodwill and other intangible assets		2,008,692			2,016,766			2,042,486			2,016,790			2,051,727
Average tangible shareholders’ equity	$	4,853,863		$	4,737,215		$	4,563,300		$	4,764,232		$	4,479,697
Annualized return on average tangible shareholders’ equity (non-GAAP)		8.06	%		5.95	%		12.39	%		7.40	%		12.71	%
Efficiency ratio (non-GAAP):
Non-interest expense, as reported (GAAP)	$	269,471		$	277,497		$	267,133		$	827,278		$	822,270
Less: FDIC Special assessment (pre-tax)		—			1,363			—			8,757			—
Less: Restructuring charge (pre-tax)		—			334			(675	)		954			10,507
Less: Merger-related expenses (pre-tax)		—			—			—			—			4,133
Less: Amortization of tax credit investments (pre-tax)		5,853			5,791			4,191			17,206			13,462
Non-interest expense, as adjusted (non-GAAP)	$	263,618		$	270,009		$	263,617		$	800,361		$	794,168
Net interest income, as reported (GAAP)		410,498			401,685			412,418			1,205,731			1,268,203
Non-interest income, as reported (GAAP)		60,671			51,213			58,664			173,299			173,038
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)		1			4			443			12			476
Add: Mark-to-market loss on commercial real estate loans transferred to loans held for sale (pre-tax)		5,794			—			—			5,794			—
Less: Litigation settlements (pre-tax)		(7,334	)		—			—			(7,334	)		—
Less: Gain on sale of premium finance division (pre-tax)		—			—			—			(3,629	)		—
Less: Net gains on sales of office buildings (pre-tax)		—			—			(6,721	)		—			(6,721	)
Non-interest income, as adjusted (non-GAAP)	$	59,132		$	51,217		$	52,386		$	168,142		$	166,793
Gross operating income, as adjusted (non-GAAP)	$	469,630		$	452,902		$	464,804		$	1,373,873		$	1,434,996
Efficiency ratio (non-GAAP)		56.13	%		59.62	%		56.72	%		58.26	%		55.34	%

	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
($ in thousands, except for share data)	2024			2024			2024			2023			2023
Tangible book value per common share (non-GAAP):
Common shares outstanding		509,252,936			509,205,014			508,893,059			507,709,927			507,660,742
Shareholders’ equity (GAAP)	$	6,972,380		$	6,737,737		$	6,727,139		$	6,701,391		$	6,627,299
Less: Preferred stock		354,345			209,691			209,691			209,691			209,691
Less: Goodwill and other intangible assets		2,004,414			2,012,580			2,020,405			2,029,267			2,038,202
Tangible common shareholders’ equity (non-GAAP)	$	4,613,621		$	4,515,466		$	4,497,043		$	4,462,433		$	4,379,406
Tangible book value per common share (non-GAAP)	$	9.06		$	8.87		$	8.84		$	8.79		$	8.63
Tangible common equity to tangible assets (non-GAAP):
Tangible common shareholders’ equity (non-GAAP)	$	4,613,621		$	4,515,466		$	4,497,043		$	4,462,433		$	4,379,406
Total assets (GAAP)		62,092,332			62,058,974			61,000,188			60,934,974			61,183,352
Less: Goodwill and other intangible assets		2,004,414			2,012,580			2,020,405			2,029,267			2,038,202
Tangible assets (non-GAAP)	$	60,087,918		$	60,046,394		$	58,979,783		$	58,905,707		$	59,145,150
Tangible common equity to tangible assets (non-GAAP)		7.68	%		7.52	%		7.62	%		7.58	%		7.40	%

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data)

	September 30,			December 31,
	2024			2023
	(Unaudited)
Assets
Cash and due from banks	$	511,945		$	284,090
Interest bearing deposits with banks		527,960			607,135
Investment securities:
Equity securities		73,071			64,464
Trading debt securities		3,996			3,973
Available for sale debt securities		2,602,260			1,296,576
Held to maturity debt securities (net of allowance for credit losses of $1,076 at September 30, 2024 and $1,205 at December 31, 2023)		3,573,960			3,739,208
Total investment securities		6,253,287			5,104,221
Loans held for sale (includes fair value of $17,153 at September 30, 2024 and $20,640 at December 31, 2023 for loans originated for sale)		843,201			30,640
Loans		49,355,319			50,210,295
Less: Allowance for loan losses		(548,327	)		(446,080	)
Net loans		48,806,992			49,764,215
Premises and equipment, net		356,649			381,081
Lease right of use assets		335,032			343,461
Bank owned life insurance		730,081			723,799
Accrued interest receivable		250,131			245,498
Goodwill		1,868,936			1,868,936
Other intangible assets, net		135,478			160,331
Other assets		1,472,640			1,421,567
Total Assets	$	62,092,332		$	60,934,974
Liabilities
Deposits:
Non-interest bearing	$	11,153,754		$	11,539,483
Interest bearing:
Savings, NOW and money market		25,069,405			24,526,622
Time		14,172,807			13,176,724
Total deposits		50,395,966			49,242,829
Short-term borrowings		58,268			917,834
Long-term borrowings		3,274,340			2,328,375
Junior subordinated debentures issued to capital trusts		57,368			57,108
Lease liabilities		394,971			403,781
Accrued expenses and other liabilities		939,039			1,283,656
Total Liabilities		55,119,952			54,233,583
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at September 30, 2024 and December 31, 2023)		111,590			111,590
Series B (4,000,000 shares issued at September 30, 2024 and December 31, 2023)		98,101			98,101
Series C (6,000,000 shares issued at September 30, 2024)		144,654			—
Common stock (no par value, authorized 650,000,000 shares; issued 509,252,936 shares at September 30, 2024 and 507,896,910 shares at December 31, 2023)		178,661			178,187
Surplus		5,002,718			4,989,989
Retained earnings		1,551,428			1,471,371
Accumulated other comprehensive loss		(114,772	)		(146,456	)
Treasury stock, at cost (186,983 common shares at December 31, 2023)		—			(1,391	)
Total Shareholders’ Equity		6,972,380			6,701,391
Total Liabilities and Shareholders’ Equity	$	62,092,332		$	60,934,974

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Interest Income
Interest and fees on loans	$	786,680		$	770,964		$	753,638		$	2,329,197		$	2,124,036
Interest and dividends on investment securities:
Taxable		49,700			40,460			32,383			125,957			96,591
Tax-exempt		4,855			4,799			4,585			14,450			15,485
Dividends		5,929			6,341			5,299			19,098			18,001
Interest on federal funds sold and other short-term investments		13,385			10,902			17,113			33,969			66,594
Total interest income		860,549			833,466			813,018			2,522,671			2,320,707
Interest Expense
Interest on deposits:
Savings, NOW and money market		235,371			231,597			201,916			699,474			517,524
Time		174,741			160,442			164,336			486,248			370,398
Interest on short-term borrowings		451			691			5,189			21,754			89,345
Interest on long-term borrowings and junior subordinated debentures		39,488			39,051			29,159			109,464			75,237
Total interest expense		450,051			431,781			400,600			1,316,940			1,052,504
Net Interest Income		410,498			401,685			412,418			1,205,731			1,268,203
(Credit) provision for credit losses for available for sale and held to maturity securities		(14	)		(41	)		(30	)		(129	)		4,675
Provision for credit losses for loans		75,038			82,111			9,147			202,423			24,929
Net Interest Income After Provision for Credit Losses		335,474			319,615			403,301			1,003,437			1,238,599
Non-Interest Income
Wealth management and trust fees		15,125			13,136			11,417			46,191			32,180
Insurance commissions		2,880			3,958			2,336			9,089			7,895
Capital markets		6,347			7,779			7,141			19,796			35,000
Service charges on deposit accounts		12,826			11,212			10,952			35,287			31,970
Gains (losses) on securities transactions, net		47			3			(398	)		99			197
Fees from loan servicing		3,443			2,691			2,681			9,322			8,054
(Losses) gains on sales of loans, net		(3,644	)		884			2,023			(1,142	)		3,752
Gains (losses) on sales of assets, net		55			(2	)		6,653			3,747			6,938
Bank owned life insurance		5,387			4,545			2,709			13,167			7,736
Other		18,205			7,007			13,150			37,743			39,316
Total non-interest income		60,671			51,213			58,664			173,299			173,038
Non-Interest Expense
Salary and employee benefits expense		138,832			140,815			137,292			421,478			431,872
Net occupancy expense		26,973			24,252			24,675			75,548			73,880
Technology, furniture and equipment expense		28,962			35,203			37,320			99,627			106,304
FDIC insurance assessment		14,792			14,446			7,946			47,474			27,527
Amortization of other intangible assets		8,692			8,568			9,741			26,672			30,072
Professional and legal fees		14,118			17,938			17,109			48,521			55,329
Amortization of tax credit investments		5,853			5,791			4,191			17,206			13,462
Other		31,249			30,484			28,859			90,752			83,824
Total non-interest expense		269,471			277,497			267,133			827,278			822,270
Income Before Income Taxes		126,674			93,331			194,832			349,458			589,367
Income tax expense		28,818			22,907			53,486			84,898			162,410
Net Income		97,856			70,424			141,346			264,560			426,957
Dividends on preferred stock		6,117			4,108			4,127			14,344			12,031
Net Income Available to Common Shareholders	$	91,739		$	66,316		$	137,219		$	250,216		$	414,926

VALLEY NATIONAL BANCORP
Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and
Net Interest Income on a Tax Equivalent Basis

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average					Avg.		Average					Avg.		Average					Avg.
($ in thousands)	Balance		Interest			Rate		Balance		Interest			Rate		Balance		Interest			Rate
Assets
Interest earning assets:
Loans ⁽¹⁾⁽²⁾	$	50,126,963	$	786,704		6.28	%	$	50,020,901	$	770,987		6.17	%	$	50,019,414	$	753,662		6.03	%
Taxable investments ⁽³⁾		5,977,211		55,629		3.72			5,379,101		46,801		3.48			4,915,778		37,682		3.07
Tax-exempt investments ⁽¹⁾⁽³⁾		573,059		6,145		4.29			575,272		6,075		4.22			620,439		5,800		3.74
Interest bearing deposits with banks		974,417		13,385		5.49			797,676		10,902		5.47			1,246,934		17,113		5.49
Total interest earning assets		57,651,650		861,863		5.98			56,772,950		834,765		5.88			56,802,565		814,257		5.73
Other assets		4,590,372							4,745,689							4,589,123
Total assets	$	62,242,022						$	61,518,639						$	61,391,688
Liabilities and shareholders’ equity
Interest bearing liabilities:
Savings, NOW and money market deposits	$	25,017,504	$	235,371		3.76	%	$	24,848,266	$	231,597		3.73	%	$	23,016,737	$	201,916		3.51	%
Time deposits		14,233,209		174,741		4.91			13,311,381		160,442		4.82			14,880,311		164,336		4.42
Short-term borrowings		81,251		451		2.22			97,502		691		2.83			436,518		5,189		4.75
Long-term borrowings ⁽⁴⁾		3,324,992		39,488		4.75			3,319,195		39,051		4.71			2,495,512		29,159		4.67
Total interest bearing liabilities		42,656,956		450,051		4.22			41,576,344		431,781		4.15			40,829,078		400,600		3.92
Non-interest bearing deposits		11,158,521							11,223,562							11,951,398
Other liabilities		1,563,990							1,964,752							2,005,426
Shareholders’ equity		6,862,555							6,753,981							6,605,786
Total liabilities and shareholders’ equity	$	62,242,022						$	61,518,639						$	61,391,688

Net interest income/interest rate spread ⁽⁵⁾			$	411,812		1.76	%			$	402,984		1.73	%			$	413,657		1.81	%
Tax equivalent adjustment				(1,314	)						(1,299	)						(1,239	)
Net interest income, as reported			$	410,498						$	401,685						$	412,418
Net interest margin ⁽⁶⁾						2.85							2.83							2.90
Tax equivalent effect						0.01							0.01							0.01
Net interest margin on a fully tax equivalent basis ⁽⁶⁾						2.86	%						2.84	%						2.91	%

_________

(1)	Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
(2)	Loans are stated net of unearned income and include non-accrual loans.
(3)	The yield for securities that are classified as available for sale is based on the average historical amortized cost.
(4)	Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition.
(5)	Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(6)	Net interest income as a percentage of total average interest earning assets.

SHAREHOLDERS RELATIONS
Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

Contact:		Michael D. Hagedorn
		Senior Executive Vice President and
		Chief Financial Officer
		973-872-4885

The MIL Network –

January 25, 2025

MIL-OSI: Nasdaq Announces Quarterly Dividend of $0.24 Per Share

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Nasdaq, Inc. (Nasdaq: NDAQ) has declared a regular quarterly dividend of $0.24 per share on the company’s outstanding common stock. The dividend is payable on December 20, 2024 to shareholders of record at the close of business on December 6, 2024. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.

About Nasdaq

Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

Cautionary Note Regarding Forward-Looking Statements

Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, information regarding our dividend program and future payment obligations. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Relations Contacts:

Nick Jannuzzi
+1.973.760.1741
Nicholas.Jannuzzi@Nasdaq.com

Nick Eghtessad
+1.929.996.8894
Nick.Eghtessad@Nasdaq.com

Investor Relations Contact:

Ato Garrett
+1.212.401.8737
Ato.Garrett@Nasdaq.com

-NDAQF-

The MIL Network –

January 25, 2025

MIL-OSI: Invesco Ltd: Form 8.3 – PRS REIT PLC/The; Opening Position Disclosure

Source: GlobeNewswire (MIL-OSI)

FORM 8.3

OPENING POSITION DISCLOSURE BY
A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE
Rule 8.3 of the Takeover Code (the “Code”)

1.

KEY INFORMATION

(a)

Full name of discloser:

Invesco Ltd.

(b)

Owner or controller of interests and short positions disclosed, if different from 1(a):
The naming of nominee or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named.

(c)

Name of offeror/offeree in relation to whose relevant securities this form relates:
Use a separate form for each offeror/offeree

PRS REIT plc, The

(d)

If an exempt fund manager connected with an offeror/offeree, state this and specify identity of offeror/offeree:

(e)

Date position held/dealing undertaken:
For an opening position disclosure, state the latest practicable date prior to the disclosure

23.10.2024

(f)

In addition to the company in 1(c) above, is the discloser making disclosures in respect of any other party to the offer?
If it is a cash offer or possible cash offer, state “N/A”

N/A

2.

POSITIONS OF THE PERSON MAKING THE DISCLOSURE

If there are positions or rights to subscribe to disclose in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 2(a) or (b) (as appropriate) for each additional class of relevant security.

(a)

Interests and short positions in the relevant securities of the offeror or offeree to which the disclosure relates following the dealing (if any)

Class of relevant security:

1p ordinary GB00BF01NH51

Interests

Short Positions

Number

%

Number

%

(1)

Relevant securities owned and/or controlled:

71,666,700

13.04

(2)

Cash-settled derivatives:

(3)

Stock-settled derivatives (including options) and agreements to purchase/sell:

Total

71,666,700

13.04

All interests and all short positions should be disclosed.

Details of any open stock-settled derivative positions (including traded options), or agreements to purchase or sell relevant securities, should be given on a Supplemental Form 8 (Open Positions).

(b)

Rights to subscribe for new securities (including directors’ and other employee options)

Class of relevant security in relation to which subscription right exists:

Details, including nature of the rights concerned and relevant percentages:

3.

DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE

Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 3(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.

The currency of all prices and other monetary amounts should be stated.

(a)

Purchases and sales

Class of relevant security

Purchase/sale

Number of securities

Price per unit

(b)

Cash-settled derivative transactions

Class of relevant security

Product description e.g. CFD

Nature of dealing e.g. opening/closing a long/short position, increasing/reducing a long/short position

Number of reference securities

Price per unit

(c)

Stock-settled derivative transactions (including options)

(i)

Writing, selling, purchasing or varying

Class of relevant security

Product description e.g. call option

Writing, purchasing, selling, varying etc.

Number of securities to which option relates

Exercise price per unit

Type e.g. American, European etc.

Expiry date

Option money paid/ received per unit

(ii)

Exercise

Class of relevant security

Product description e.g. call option

Exercising/ exercised against

Number of securities

Exercise price per unit

(d)

Other dealings (including subscribing for new securities)

Class of relevant security

Nature of dealing e.g. subscription, conversion

Details

Price per unit (if applicable)

4.

OTHER INFORMATION

(a)

Indemnity and other dealing arrangements

Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer:
Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state “none”

None

(b)

Agreements, arrangements, or understandings relating to options or derivatives

Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person relating to:
(i) the voting rights of any relevant securities under any option; or
(ii) the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced:
If there are no such agreements, arrangements or understandings, state “none”

None

(c)

Attachments

Is a Supplemental Form 8 (Open Positions) attached?

NO

Date of disclosure

24.10.2024

Contact name

Philippa Holmes

Telephone number

+441491417447

Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service.

The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s disclosure requirements on +44 (0)20 7638 0129.

The Code can be viewed on the Panel’s website at www.thetakeoverpanel.org.uk.

The MIL Network –

January 25, 2025

MIL-OSI: AGF Investments Announces October 2024 Cash Distributions for AGF Enhanced U.S. Equity Income Fund, AGF Total Return Bond Fund and AGF Systematic Global Infrastructure ETF

Source: GlobeNewswire (MIL-OSI)

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — AGF Investments Inc. (AGF Investments) today announced the October 2024 cash distributions for AGF Enhanced U.S. Equity Income Fund*, AGF Total Return Bond Fund* and AGF Systematic Global Infrastructure ETF, which pay monthly distributions. Unitholders of record on October 31, 2024 will receive cash distributions payable on November 6, 2024.

Details regarding the final “per unit” distribution amounts are as follows:

ETF	Ticker	Exchange	Cash Distribution Per Unit ($)
AGF Enhanced U.S. Equity Income Fund*	AENU	Cboe Canada Inc.	$0.138874
AGF Total Return Bond Fund*	ATRB	Cboe Canada Inc.	$0.123000
AGF Systematic Global Infrastructure ETF	QIF	Cboe Canada Inc.	$0.138692

*AGF Enhanced U.S. Equity Income Fund and AGF Total Return Bond Fund are mutual funds with an ETF series option.

Further information about the AGF ETFs can be found at AGF.com.

This information is not intended to provide legal, accounting, tax, investment, financial, or other advice, and should not be relied upon for providing such advice. Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With nearly $51 billion in total assets under management and fee-earning assets, AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

About AGF Investments

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.

AGF Investments entities only provide investment advisory services or offers investment funds in the jurisdiction where such firm and/or product is registered or authorized to provide such services.

AGF Investments Inc. is a wholly-owned subsidiary of AGF Management Limited and conducts the management and advisory of mutual funds in Canada.

Media Contact
Amanda Marchment
Director, Corporate Communications
416-865-4160
amanda.marchment@agf.com

The MIL Network –

January 25, 2025

MIL-OSI: TeraWulf Inc. Announces Upsize and Pricing of $425 Million Convertible Notes Offering

Source: GlobeNewswire (MIL-OSI)

EASTON, Md., Oct. 24, 2024 (GLOBE NEWSWIRE) — TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced the upsize and pricing of its offering of $425 million aggregate principal amount of 2.75% Convertible Senior Notes due 2030 (the “Convertible Notes”). The Convertible Notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

Key Elements of the Transaction:

$425 million 2.75% Convertible Senior Notes offering (32.50% conversion premium)
Capped call transactions entered into in connection with the 2.75% Convertible Senior Notes due 2030 with an initial cap price of $12.80 per share of common stock, which represents a 100% premium to the closing sale price of TeraWulf’s common stock on October 23, 2024
Concurrent repurchase of approximately $115 million of common stock

TeraWulf has granted the initial purchasers of the Convertible Notes a 13-day option to purchase up to an additional $75 million aggregate principal amount of the Convertible Notes. The offering is expected to close on October 25, 2024, subject to satisfaction of customary closing conditions.

Use of Proceeds:

The Company anticipates that the aggregate net proceeds from the offering will be approximately $414.9 million (or approximately $488.1 million if the initial purchasers exercise in full their option to purchase additional notes), after deducting the initial purchasers’ discounts and commissions payable by TeraWulf. The Company intends to use approximately $51 million of the net proceeds from the offering to pay the cost of the capped call transactions (as described below), $115 million to repurchase shares of the Company’s common stock (the “common stock”), and the remainder for general corporate purposes, which may include working capital, strategic acquisitions, expansion of data center infrastructure to support HPC activities and expansion of existing assets.

Additional Details of the Convertible Notes:

The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest at a rate of 2.75% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2025. The Convertible Notes will mature on February 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to November 1, 2029, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the Convertible Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

The Convertible Notes will be convertible into cash in respect of the aggregate principal amount of the Convertible Notes to be converted and cash, shares of the common stock or a combination of cash and shares of the common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The conversion rate will initially be 117.9245 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $8.48 per share of the common stock). The initial conversion price of the Convertible Notes represents a premium of approximately 32.50% to the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024. The conversion rate will be subject to adjustment in certain circumstances. In addition, upon conversion in connection with certain corporate events or a notice of redemption, the Company will increase the conversion rate.

The Company may not redeem the Convertible Notes prior to November 6, 2027. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, on or after November 6, 2027, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption to holders at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

Holders of the Convertible Notes will have the right to require the Company to repurchase all or a portion of their Convertible Notes upon the occurrence of a fundamental change (as defined in the indenture governing the Convertible Notes) at a cash repurchase price of 100% of their principal amount plus any accrued and unpaid interest, if any, to, but excluding the applicable repurchase date.

Capped Call Transactions:

In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “option counterparties”). The cap price of the capped call transactions will initially be $12.80 per share of common stock, which represents a premium of 100% over the last reported sale price of the common stock of $6.40 per share on The Nasdaq Capital Market on October 23, 2024 and will be subject to customary anti-dilution adjustments. If the initial purchasers of the Convertible Notes exercise their option to purchase additional Convertible Notes, the Company expects to use a portion of the net proceeds from the sale of the additional Convertible Notes to enter into additional capped call transactions with the option counterparties.

The capped call transactions are expected generally to reduce potential dilution to the common stock upon conversion of any Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.

In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase shares of the common stock and/or enter into various derivative transactions with respect to the common stock concurrently with or shortly after the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) the market price of the common stock or the Convertible Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or purchasing or selling shares of the common stock or other securities of the Company in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so on each exercise date for the capped call transactions or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the Convertible Notes). This activity could also cause or avoid an increase or decrease in the market price of the common stock or the Convertible Notes, which could affect holders of the Convertible Notes’ ability to convert the Convertible Notes and, to the extent the activity occurs following conversion of the Convertible Notes or during any observation period related to a conversion of the Convertible Notes, it could affect the amount and value of the consideration that holders of the Convertible Notes will receive upon conversion of such Convertible Notes.

Share Repurchases:

The Company entered into transactions to repurchase approximately 17.97 million shares of the common stock for an aggregate purchase price of approximately $115 million from purchasers of the Convertible Notes in privately negotiated transactions effected concurrently with the pricing of the Convertible Notes, and the purchase price per share of the common stock repurchased in such transactions will equal the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024.

The Convertible Notes and any shares of common stock issuable upon conversion of the Convertible Notes, if any, have not been registered under the Securities Act, securities laws of any other jurisdiction, and the Convertibles Notes and such shares of common stock may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Convertible Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Convertible Notes, nor shall there be any sale of the Convertible Notes or common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About TeraWulf

TeraWulf develops, owns, and operates environmentally sustainable, next-generation data center infrastructure in the United States, specifically designed for Bitcoin mining and high-performance computing. Led by a team of seasoned energy entrepreneurs, the Company owns and operates the Lake Mariner facility situated on the expansive site of a now retired coal plant in Western New York. Currently, TeraWulf generates revenue primarily through Bitcoin mining, leveraging predominantly zero-carbon energy sources, including nuclear and hydroelectric power. Committed to environmental, social, and governance (ESG) principles that align with its business objectives, TeraWulf aims to deliver industry-leading economics in mining and data center operations at an industrial scale.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts, such as statements concerning the terms of the notes and the capped call transactions, the completion, timing and size of the offering of the notes and the capped call transactions, and the anticipated use of proceeds from the offering (including the proposed share repurchases). All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of cryptocurrency mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining, and/or regulation regarding safety, health, environmental and other matters, which could require significant expenditures; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) adverse geopolitical or economic conditions, including a high inflationary environment; (8) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (9) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its growth strategy; (10) employment workforce factors, including the loss of key employees; (11) litigation relating to TeraWulf and/or its business; and (12) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

Investors:
Investors@terawulf.com

Media:
media@terawulf.com

The MIL Network –

January 25, 2025

MIL-OSI: Orezone Provides Hard Rock Expansion Update for Its Bomboré Gold Mine

Source: GlobeNewswire (MIL-OSI)

VANCOUVER, British Columbia, Oct. 24, 2024 (GLOBE NEWSWIRE) — Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) (“Orezone”) is pleased to provide an update on the hard rock expansion at its Bomboré Gold Mine. The hard rock expansion is forecasted to increase annual gold production to over 170,000 ounces, an approximate 50% increase from current levels, with first gold planned in Q4-2025.

Site works are well-advanced with the plant-site area cleared and all major earthworks complete. Laydown areas have been prepared and are ready to receive construction equipment, offices, and major plant deliveries. Camp upgrades for construction supervision and teams are also now operational.

Engineering and Procurement

Lycopodium Minerals Canada (“Lycopodium”) was awarded the engineering and procurement contract and is ahead of schedule on both activities. Lycopodium was selected due to their successful track record of designing and constructing numerous gold plants in West Africa, including the Company’s Phase I oxide plant that is currently in operation and exceeding nameplate design.

In terms of procurement, the Company has placed over 50% of all packages including CIL tank platework and 95% of all process equipment. This includes the purchase of a 9MW 26’ diameter SAG mill. The SAG mill is a new, pre-owned mill that was never installed and carries a full warranty by the supplier. Substantial savings in costs and schedule are being realized from the purchase of this manufactured mill. The mill shells, heads and ring gear are now being packaged for shipment later this quarter which is well ahead of schedule.

Site Construction Activities

The concrete installation contract was recently awarded with mobilization of the batch plant and equipment scheduled for mid-November, three months ahead of schedule.

The tank platework supply was awarded in September, and bids for the structural steel and general platework are under evaluation and will be awarded in November.

The main Structural, Mechanical, and Piping installation contract is expected to be awarded in Q1-2025, which again will be ahead of schedule.

Mining Fleet and Explosives Magazine

The first shipment of the hard rock fleet by the mining contractor, which includes new trucks and excavators, has arrived in Burkina Faso and will be transported to site in late October. This early delivery will allow for systematic training of operators well ahead of the start of hard rock mining and will facilitate more cost-effective mining of the lower transition material in the near-term. The remaining hard rock fleet will be delivered to site over the coming six to eight months.

The explosives magazine is in the final stages of completion. Once in service, the Company will be able to purchase and store bulk explosives for mixing and preparation at site, eliminating the need for the more costly pre-mix batch deliveries. A full-service team from AECI will be on site to mix and supply the downhole explosives for blasting of transition and hard rock material.

Patrick Downey, President & CEO stated, “I am extremely pleased with the fast progress made to date on the hard rock expansion. The team has focused on critical areas to accelerate site activities and to meet or exceed key milestones. We look forward to sharing regular updates on this important expansion.”

Figure 1: Hard Rock Plant Area

About Orezone Gold Corporation

Orezone Gold Corporation (TSX: ORE OTCQX: ORZCF) is a West African gold producer engaged in mining, developing, and exploring its flagship Bomboré Gold Mine in Burkina Faso. The Bomboré mine achieved commercial production on its oxide operations on December 1, 2022, and is now focused on its staged hard rock expansion that is expected to materially increase annual and life-of-mine gold production from the processing of hard rock mineral reserves. Orezone is led by an experienced team focused on social responsibility and sustainability with a proven track record in project construction and operations, financings, capital markets and M&A.

The technical report entitled Bomboré Phase II Expansion, Definitive Feasibility Study is available on SEDAR+ and the Company’s website.

Patrick Downey
President and Chief Executive Officer

Vanessa Pickering
Manager, Investor Relations

Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
info@orezone.com / www.orezone.com

For further information please contact Orezone at +1 (778) 945 8977 or visit the Company’s website at www.orezone.com.

The Toronto Stock Exchange neither approves nor disapproves the information contained in this news release.

QUALIFIED PERSONS

Dale Tweed, P. Eng., VP Engineering and Rob Henderson, P. Eng. VP Technical Services of Orezone, are Qualified Persons under NI 43-101 and have reviewed and approved the scientific and technical information contained in this news release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain information that may constitute “forward-looking information” within the meaning of applicable Canadian Securities laws and “forward-looking statements” within the meaning of applicable U.S. securities laws (together, “forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “possible” and other similar words, or statements that certain events or conditions “may”, “will”, “could”, or “should” occur. Forward-looking statements in this press release include, but are not limited to, statements with respect to the hard rock expansion including the increase in gold production.

All such forward-looking statements are based on certain assumptions and analyses made by management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management and the qualified persons believe are appropriate in the circumstances.

All forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements including, but not limited to, delays caused by pandemics, terrorist or other violent attacks (including cyber security attacks), the failure of parties to contracts to honour contractual commitments, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, the possibility of unanticipated costs and expenses, accidents and equipment breakdowns, political risk, unanticipated changes in key management personnel and general economic, market or business conditions, the failure of exploration programs, including drilling programs, to deliver anticipated results and the failure of ongoing and uncertainties relating to the availability and costs of financing needed in the future, and other factors described in the Company’s most recent annual information form and management discussion and analysis filed on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking statements.

Although the forward-looking statements contained in this press release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this press release.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a33214c6-4db5-42c0-8910-83291abd3045

The MIL Network –

January 25, 2025

MIL-OSI: Foodrella Tteokbokki Captivates Global Taste Buds

Source: GlobeNewswire (MIL-OSI)

SEOUL, KOREA, Oct. 24, 2024 (GLOBE NEWSWIRE) — Foodrella, a Korean food brand, has launched a product that allows global consumers to create authentic K-food with a simple recipe.

Once considered a casual snack, tteokbokki has now become deeply embedded in the culinary cultures of the U.S., Europe, and Asia, positioning itself as a pioneer in the globalization of Korean food. Driven by the rising popularity of K-pop and Korean dramas, interest in tteokbokki has surged, especially after K-pop stars were seen enjoying the dish. This has significantly increased demand among international fans eager to experience Korean culture.

In response to this trend, Foodrella’s tteokbokki mix was created to allow consumers to make the dish effortlessly, using just the mix without needing additional seasoning. Since its debut on Amazon, the product has received widespread acclaim from global consumers, offering them an easy way to enjoy K-food at home.

Hanmi F3 Co., Ltd., the manufacturer of Foodrella, was founded in 1987. Specializing in the production of sauces, seasonings, food coatings, beverage bases, bakery & dessert mixes, and pickles, the company primarily caters to the restaurant and cafe franchise sectors. Hanmi F3 is dedicated to quality and safety, earning recognition as a leading domestic food manufacturer, with growing attention in international markets.

Hanmi F3 uses only the finest premium ingredients, ensuring that even with simple processes, its products offer exceptional culinary experiences that add real value to customers’ businesses. The company focuses on providing customized solutions to meet diverse customer needs, while continuously improving products to maintain the highest quality standards.

A representative from Foodrella stated, “We will continue to focus on developing products tailored to global tastes, aiming to establish tteokbokki not just as a snack, but as a dish enjoyed in everyday life by consumers around the world. We plan to expand the market by diversifying both our recipes and product offerings.” The representative also added, “By adopting localized strategies based on the preferences of consumers in different regions, we aim to introduce new tteokbokki products that can be integrated with a variety of local cuisines.”

Instagram: https://www.instagram.com/foodrella.official/

Kakao: https://pf.kakao.com/_thqNC

Facebook: https://www.facebook.com/foodrella

Media Contact

Brand: Foodrella

Contact: Jason Shin

Email: ssw@foodrella.com

Website: https://foodrella.com

The MIL Network –

January 25, 2025

MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

FAIR LAWN, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $6.2 million, or $0.06 per basic and diluted share, for the quarter ended September 30, 2024, as compared to $9.1 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2023. The income for the quarter ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense.

For the nine months ended September 30, 2024, the Company reported net income of $9.6 million, or $0.09 per basic and diluted share, as compared to $29.5 million, or $0.29 per basic and diluted share, for the nine months ended September 30, 2023. Earnings for the nine months ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense. Non-interest income for the 2023 period included a $10.8 million loss on securities transactions.

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The third quarter earnings have been challenged by continuing pressure on funding costs. Our net interest margin, which has increased 9 basis points since the first quarter of 2024, and our expense management, we believe, will contribute to improved earnings on a go forward basis. The Company’s balance sheet and capital remain strong. We successfully closed the merger and performed the system conversion of Freehold Bank into Columbia Bank in October 2024. This was the final step of our fourth completed merger over the last five years.”

Results of Operations for the Three Months Ended September 30, 2024 and September 30, 2023

Net income of $6.2 million was recorded for the quarter ended September 30, 2024, a decrease of $2.9 million, or 32.3%, compared to $9.1 million for the quarter ended September 30, 2023. The decrease in net income was primarily attributable to a $3.2 million decrease in net interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $376,000 increase in non-interest income, and a $1.6 million decrease in income tax expense.

Net interest income was $45.3 million for the quarter ended September 30, 2024, a decrease of $3.2 million, or 6.7%, from $48.5 million for the quarter ended September 30, 2023. The decrease in net interest income was primarily attributable to a $20.7 million increase in interest expense on deposits and borrowings, partially offset by a $17.5 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $171,000 for the quarter ended September 30, 2024, compared to $83,000 for the quarter ended September 30, 2023.

The average yield on loans for the quarter ended September 30, 2024 increased 53 basis points to 5.00%, as compared to 4.47% for the quarter ended September 30, 2023, as interest income was influenced by rising interest rates and the average balance of loans. The average yield on securities for the quarter ended September 30, 2024 increased 53 basis points to 2.90%, as compared to 2.37% for the quarter ended September 30, 2023, as new securities purchased during the 2024 period were at higher rates. The average yield on other interest-earning assets for the quarter ended September 30, 2024 increased 81 basis points to 6.72%, as compared to 5.91% for the quarter ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

Total interest expense was $70.6 million for the quarter ended September 30, 2024, an increase of $20.7 million, or 41.6%, from $49.9 million for the quarter ended September 30, 2023. The increase in interest expense was primarily attributable to a 90 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 17 basis point increase in the average cost of borrowings, coupled with an increase in the average balance of borrowings. Interest expense on deposits increased $16.3 million, or 45.3%, and interest expense on borrowings increased $4.5 million, or 31.9%.

The Company’s net interest margin for the quarter ended September 30, 2024 decreased 22 basis points to 1.84%, when compared to 2.06% for the quarter ended September 30, 2023. The weighted average yield on interest-earning assets increased 53 basis points to 4.70% for the quarter ended September 30, 2024, as compared to 4.17% for the quarter ended September 30, 2023. The average cost of interest-bearing liabilities increased 82 basis points to 3.52% for the quarter ended September 30, 2024, as compared to 2.70% for the quarter ended September 30, 2023. The increase in yields for the quarter ended September 30, 2024 was due to the impact of market interest rate increases in 2023. The net interest margin decreased for the quarter ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets. The Company’s net interest margin for the quarter ended September 30, 2024 when compared to the quarter ended March 31, 2024 increased 9 basis points from 1.75% to 1.84%.

The provision for credit losses for the quarter ended September 30, 2024 was $4.1 million, an increase of $1.7 million, from $2.4 million for the quarter ended September 30, 2023. The increase in provision for credit losses during the quarter was primarily attributable to net charge-offs totaling $2.7 million and an increase in the loan performance qualitative factors.

Non-interest income was $9.0 million for the quarter ended September 30, 2024, an increase of $376,000, from $8.6 million for the quarter ended September 30, 2023. The increase was primarily attributable to an increase of $347,000 in demand deposit account fees, mainly related to commercial account treasury services.

Non-interest expense was $42.8 million for the quarter ended September 30, 2024, a decrease of $76,000, from $42.9 million for the quarter ended September 30, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.0 million, partially offset by an increase in data processing fees of $666,000, and federal deposit insurance premiums of $317,000. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024. Data processing and software expenses increased due to costs related to cybersecurity and technology enhancements, and federal deposit insurance premiums increased due to the 2024 quarter including an increase in a one-time special assessment charge.

Income tax expense was $1.1 million for the quarter ended September 30, 2024, a decrease of $1.6 million, as compared to income tax expense of $2.7 million for the quarter ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 15.5% and 22.9% for the quarters ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 quarter was primarily impacted by permanent income tax differences.

Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023

Net income of $9.6 million was recorded for the nine months ended September 30, 2024, a decrease of $19.9 million, or 67.6%, compared to $29.5 million for the nine months ended September 30, 2023. The decrease in net income was primarily attributable to a $29.0 million decrease in net interest income and a $7.9 million increase in provision for credit losses, partially offset by a $9.5 million increase in non-interest income and a $7.8 million decrease in income tax expense.

Net interest income was $131.6 million for the nine months ended September 30, 2024, a decrease of $29.0 million, or 18.1%, from $160.5 million for the nine months ended September 30, 2023. The decrease in net interest income was primarily attributable to a $79.4 million increase in interest expense on deposits and borrowings, partially offset by a $50.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $875,000 for the nine months ended September 30, 2024, compared to $339,000 for the nine months ended September 30, 2023.

The average yield on loans for the nine months ended September 30, 2024 increased 55 basis points to 4.91%, as compared to 4.36% for the nine months ended September 30, 2023, as interest income was influenced by higher interest rates and loan growth. The average yield on securities for the nine months ended September 30, 2024 increased 40 basis points to 2.82%, as compared to 2.42% for the nine months ended September 30, 2023, as a number of adjustable rate securities tied to various indexes repriced higher during the nine months, and new securities purchased during the 2024 period were at higher yields. The average yield on other interest-earning assets for the nine months ended September 30, 2024 increased 90 basis points to 6.35%, as compared to 5.45% for the nine months ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

Total interest expense was $206.2 million for the nine months ended September 30, 2024, an increase of $79.4 million, 62.5%, from $126.9 million for the nine months ended September 30, 2023. The increase in interest expense was primarily attributable to a 134 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 25 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings. Interest expense on deposits increased $68.7 million, or 84.1%, and interest expense on borrowings increased $10.6 million, or 23.6%.

The Company’s net interest margin for the nine months ended September 30, 2024 decreased 47 basis points to 1.80%, when compared to 2.27% for the nine months ended September 30, 2023. The weighted average yield on interest-earning assets increased 55 basis points to 4.61% for the nine months ended September 30, 2024, as compared to 4.06% for the nine months ended September 30, 2023. The average cost of interest-bearing liabilities increased 118 basis points to 3.47% for the nine months ended September 30, 2024, as compared to 2.29% for the nine months ended September 30, 2023. The increase in yields for the nine months ended September 30, 2024 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the nine months ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

The provision for credit losses for the nine months ended September 30, 2024 was $11.6 million, an increase of $7.9 million, from $3.6 million for the nine months ended September 30, 2023. The increase in provision for credit losses was primarily attributable to net charge-offs totaling $8.2 million and an increase in the loan performance qualitative factors.

Non-interest income was $25.6 million for the nine months ended September 30, 2024, an increase of $9.5 million, from $16.1 million for the nine months ended September 30, 2023. The increase was primarily attributable to a decrease in the loss on securities transactions of $9.6 million.

Non-interest expense was $134.7 million for the nine months ended September 30, 2024, an increase of $321,000, from $134.4 million for the nine months ended September 30, 2023. The increase was primarily attributable to an increase in federal deposit insurance premiums of $2.1 million, due to the 2024 period including an increase in a one-time special assessment charge. In addition, there was an increase in professional fees of $4.9 million, an increase in data processing and software expenses of $1.1 million, an increase in merger-related expense of $457,000, and an increase in other non-interest expense of $1.2 million, partially offset by a decrease in compensation and employee benefits expense of $9.5 million. Professional fees included an increase in legal, regulatory and compliance-related costs while data processing and software expenses increased due to costs related to cybersecurity and technology enhancements. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024.

Income tax expense was $1.3 million for the nine months ended September 30, 2024, a decrease of $7.8 million, as compared to income tax expense of $9.1 million for the nine months ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 11.8% and 23.6% for the nine months ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 period was also impacted by permanent income tax differences.

Balance Sheet Summary

Total assets increased $40.9 million, or 0.4%, to $10.7 billion at September 30, 2024 as compared to $10.6 billion at December 31, 2023. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $178.9 million, and an increase in other assets of $21.3 million, partially offset by a decrease in cash and cash equivalents of $139.7 million, and a decrease in loans receivable, net, of $20.7 million.

Cash and cash equivalents decreased $139.7 million, or 33.0%, to $283.5 million at September 30, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $283.5 million and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from principal repayments on securities of $119.3 million, and repayments on loans receivable.

Debt securities available for sale increased $178.9 million, or 16.4%, to $1.3 billion at September 30, 2024 from $1.1 billion at December 31, 2023. The increase was attributable to the purchases of debt securities available for sale of $266.9 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in gross unrealized losses on securities of $34.3 million, partially offset by repayments on securities of $107.8 million, maturities of securities of $10.0 million, and the sale of one corporate debt security with a carrying value of $4.8 million, resulting in a loss of $1.3 million.

Loans receivable, net, decreased $20.7 million, or 0.3%, with a balance of $7.8 billion at both September 30, 2024 and December 31, 2023. One-to-four family real estate loans, multifamily loans, commercial real estate loans, and home equity loans and advances decreased $55.6 million, $10.2 million, $64.3 million, and $5.6 million, respectively, partially offset by increases in construction loans of $67.3 million and commercial business loans of $53.4 million. The allowance for credit losses for loans increased $3.4 million to $58.5 million at September 30, 2024 from $55.1 million at December 31, 2023.

Other assets increased $21.3 million or 6.9%, to $329.7 million at September 30, 2024 compared to $308.4 million at December 31, 2023, primarily due to a $10.4 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations and a $12.6 million increase in the Company’s collateral posting with certain of its derivative counterparties.

Total liabilities increased $2.1 million, or 0.02%, totaling $9.6 billion at both September 30, 2024 and December 31, 2023. The increase was primarily attributable to an increase in total deposits of $111.5 million, or 1.4%, partially offset by a decrease in borrowings of $108.1 million, or 7.1%. The increase in total deposits primarily consisted of an increase in certificates of deposit and interest-bearing demand deposits of $195.7 million, and $13.8 million, respectively, partially offset by decreases in non-interest-bearing demand deposits, money market accounts, and savings and club accounts of $31.2 million, $16.3 million, and $50.5 million, respectively. The Bank has priced select certificates of deposit accounts very competitively to the market to attract new customers. The $108.1 million decrease in borrowings was primarily driven by a net decrease in short-term borrowings of $167.8 million and repayments of $175.5 million in maturing long-term borrowings, partially offset by an increase in long-term borrowings of $235.2 million.

Total stockholders’ equity increased $38.8 million, or 3.7%, to $1.1 billion at September 30, 2024 as compared to $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to net income of $9.6 million, a $5.5 million increase in stock based compensation and an increase of $27.7 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income. These increases were partially offset by the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

Asset Quality

The Company’s non-performing loans at September 30, 2024 totaled $28.0 million, or 0.36% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $15.4 million increase in non-performing loans was primarily attributable to an increase in non-performing one-to-four family real estate loans of $4.2 million, an increase in non-performing commercial real estate loans of $6.7 million, and an increase in non-performing commercial business loans of $4.5 million. One borrower with an outstanding $5.7 million commercial real estate loan and a related $3.5 million commercial business loan was placed on non-accrual status, representing approximately 60% of the increase in non-performing loans during the 2024 period. This borrower is a healthcare facility that was acquired by another healthcare provider in 2024. The acquiring entity has strong cash flow, has guaranteed the commercial business loan and has provided cash collateral. The Company has the first lien on the healthcare facility which has a 2024 appraised value of approximately $18.5 million along with additional collateral. One commercial real estate loan for $2.0 million secured by a medical condominium was transferred to other real estate owned in May 2024, and a related commercial business loan to the same borrower for $54,000 was charged-off during the nine months ended September 30, 2024.

The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 27 loans at September 30, 2024. Non-performing assets as a percentage of total assets totaled 0.28% and 0.12% at September 30, 2024 and December 31, 2023, respectively.

For the quarter ended September 30, 2024, net charge-offs totaled $2.7 million, as compared to $1.7 million in net charge-offs recorded for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net charge-offs totaled $8.2 million, as compared to $2.3 million in net charge-offs recorded for the nine months ended September 30, 2023. Net charge-offs recorded for the nine months ended September 30, 2024 included charge-offs related to 15 commercial business loans totaling $7.7 million. The majority of these loans have continued making monthly payments, and management expects additional recoveries from these borrowers on a go forward basis.

The Company’s allowance for credit losses on loans was $58.5 million, or 0.75% of total gross loans, at September 30, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 68 branches. With approximately 215,000 accounts, the average deposit account balance was approximately $37,000 at September 30, 2024.

Deposit balances are summarized as follows:

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

Non-interest-bearing demand	$	1,406,152		—	%	$	1,405,441		—	%
Interest-bearing demand		1,980,298		2.41			1,904,483		2.37
Money market accounts		1,239,204		2.92			1,246,663		3.17
Savings and club deposits		649,858		0.79			673,031		0.83
Certificates of deposit		2,682,547		4.45			2,551,929		4.34
Total deposits	$	7,958,059		2.62	%	$	7,781,547		2.56	%

The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at September 30, 2024. As of September 30, 2024, the Company had immediate access to approximately $2.6 billion of funding, with additional unpledged loan collateral in excess of $1.8 billion.

At September 30, 2024, the Company’s non-performing commercial real estate loans totaled $9.4 million, or 0.12%, of the total loans receivable loan portfolio balance.

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

	At September 30, 2024
	(Dollars in thousands)
	Balance		% of Gross Loans			Weighted Average Loan to Value Ratio			Weighted Average Debt Service Coverage
Multifamily Real Estate	$	1,399,000		17.8	%		61.0	%		1.62	x

Owner Occupied Commercial Real Estate	$	683,523		8.7	%		53.6	%		2.10	x

Investor Owned Commercial Real Estate:
Retail / Shopping centers	$	484,121		6.2	%		51.7	%		1.59	x
Mixed Use		211,853		2.7			58.1			1.61
Industrial / Warehouse		389,470		5.0			54.9			1.70
Non-Medical Office		197,768		2.5			54.2			1.64
Medical Office		126,947		1.6			57.9			1.50
Single Purpose		94,497		1.2			54.5			3.23
Other		124,580		1.6			52.0			1.67
Total	$	1,629,236		20.7	%		54.3	%		1.72	x

Total Multifamily and Commercial Real Estate Loans	$	3,711,759		47.2	%		56.7	%		1.75	x

As of September 30, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

About Columbia Financial, Inc.

The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 68 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

Forward Looking Statements

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

Non-GAAP Financial Measures

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

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

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


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

	September 30,		December 31,
	2024		2023
Assets	(Unaudited)
Cash and due from banks	$	283,391	$	423,140
Short-term investments		110		109
Total cash and cash equivalents		283,501		423,249

Debt securities available for sale, at fair value		1,272,464		1,093,557
Debt securities held to maturity, at amortized cost (fair value of $367,559, and $357,177 at September 30, 2024 and December 31, 2023, respectively)		401,331		401,154
Equity securities, at fair value		4,504		4,079
Federal Home Loan Bank stock		75,847		81,022

Loans receivable		7,857,190		7,874,537
Less: allowance for credit losses		58,495		55,096
Loans receivable, net		7,798,695		7,819,441

Accrued interest receivable		41,659		39,345
Office properties and equipment, net		82,248		83,577
Bank-owned life insurance		272,970		268,362
Goodwill and intangible assets		121,569		123,350
Other real estate owned		1,974		—
Other assets		329,741		308,432
Total assets	$	10,686,503	$	10,645,568

Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	7,958,059	$	7,846,556
Borrowings		1,420,640		1,528,695
Advance payments by borrowers for taxes and insurance		42,793		43,509
Accrued expenses and other liabilities		185,861		186,473
Total liabilities		9,607,353		9,605,233

Stockholders’ equity:
Total stockholders’ equity		1,079,150		1,040,335
Total liabilities and stockholders’ equity	$	10,686,503	$	10,645,568

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Interest income:	(Unaudited)						(Unaudited)
Loans receivable	$	97,863		$	87,548		$	286,064		$	252,026
Debt securities available for sale and equity securities		9,592			6,147			26,618			21,043
Debt securities held to maturity		2,616			2,434			7,487			7,338
Federal funds and interest-earning deposits		3,850			747			11,872			3,360
Federal Home Loan Bank stock dividends		1,966			1,529			5,759			3,661
Total interest income		115,887			98,405			337,800			287,428
Interest expense:
Deposits		52,196			35,918			150,440			81,733
Borrowings		18,416			13,965			55,805			45,158
Total interest expense		70,612			49,883			206,245			126,891

Net interest income		45,275			48,522			131,555			160,537

Provision for credit losses		4,103			2,379			11,575			3,632

Net interest income after provision for credit losses		41,172			46,143			119,980			156,905

Non-interest income:
Demand deposit account fees		1,695			1,348			4,698			3,815
Bank-owned life insurance		1,669			2,014			5,253			5,670
Title insurance fees		688			629			1,935			1,840
Loan fees and service charges		951			969			3,290			3,366
Loss on securities transactions		—			—			(1,256	)		(10,847	)
Change in fair value of equity securities		(27	)		(81	)		425			249
Gain on sale of loans		459			397			825			1,060
Other non-interest income		3,543			3,326			10,440			10,977
Total non-interest income		8,978			8,602			25,610			16,130

Non-interest expense:
Compensation and employee benefits		27,738			28,765			82,910			92,383
Occupancy		5,594			5,845			17,621			17,337
Federal deposit insurance premiums		1,518			1,201			5,752			3,624
Advertising		766			834			2,053			2,307
Professional fees		2,454			2,490			11,597			6,741
Data processing and software expenses		4,125			3,459			12,006			10,885
Merger-related expenses		23			14			737			280
Other non-interest expense, net		616			302			2,063			861
Total non-interest expense		42,834			42,910			134,739			134,418

Income before income tax expense		7,316			11,835			10,851			38,617

Income tax expense		1,131			2,705			1,281			9,100

Net income	$	6,185		$	9,130		$	9,570		$	29,517

Earnings per share-basic	$	0.06		$	0.09		$	0.09		$	0.29
Earnings per share-diluted	$	0.06		$	0.09		$	0.09		$	0.29
Weighted average shares outstanding-basic		101,623,160			101,968,294			101,673,619			102,993,215
Weighted average shares outstanding-diluted		101,832,048			102,097,491			101,813,253			103,257,616

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Average Balances/Yields

	For the Three Months Ended September 30,
	2024								2023
	Average Balance			Interest and Dividends		Yield / Cost			Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,791,131		$	97,863		5.00	%	$	7,763,368		$	87,548		4.47	%
Securities		1,676,781			12,208		2.90	%		1,437,944			8,581		2.37	%
Other interest-earning assets		344,560			5,816		6.72	%		152,900			2,276		5.91	%
Total interest-earning assets		9,812,472			115,887		4.70	%		9,354,212			98,405		4.17	%
Non-interest-earning assets		870,155								844,884
Total assets	$	10,682,627							$	10,199,096

Interest-bearing liabilities:
Interest-bearing demand	$	1,970,444		$	14,581		2.94	%	$	2,054,464		$	10,274		1.98	%
Money market accounts		1,250,676			8,256		2.63	%		1,049,277			7,763		2.94	%
Savings and club deposits		658,628			1,313		0.79	%		758,999			691		0.36	%
Certificates of deposit		2,589,190			28,046		4.31	%		2,296,573			17,190		2.97	%
Total interest-bearing deposits		6,468,938			52,196		3.21	%		6,159,313			35,918		2.31	%
FHLB advances		1,497,580			18,249		4.85	%		1,142,484			13,508		4.69	%
Notes payable		—			—		—	%		29,925			297		3.94	%
Junior subordinated debentures		7,028			164		9.28	%		7,315			160		8.68	%
Other borrowings		217			3		5.50	%		—			—		—	%
Total borrowings		1,504,825			18,416		4.87	%		1,179,724			13,965		4.70	%
Total interest-bearing liabilities		7,973,763		$	70,612		3.52	%		7,339,037		$	49,883		2.70	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,411,622								1,498,726
Other non-interest-bearing liabilities		235,990								241,463
Total liabilities		9,621,375								9,079,226
Total stockholders’ equity		1,061,252								1,119,870
Total liabilities and stockholders’ equity	$	10,682,627							$	10,199,096

Net interest income				$	45,275							$	48,522
Interest rate spread							1.18	%							1.47	%
Net interest-earning assets	$	1,838,709							$	2,015,175
Net interest margin							1.84	%							2.06	%
Ratio of interest-earning assets to interest-bearing liabilities		123.06	%							127.46	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Average Balances/Yields

	For the Nine Months Ended September 30,
	2024								2023
	Average Balance			Interest and Dividends		Yield / Cost			Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,789,356		$	286,064		4.91	%	$	7,725,121		$	252,026		4.36	%
Securities		1,618,319			34,105		2.82	%		1,569,999			28,381		2.42	%
Other interest-earning assets		370,749			17,631		6.35	%		172,151			7,021		5.45	%
Total interest-earning assets		9,778,424			337,800		4.61	%		9,467,271			287,428		4.06	%
Non-interest-earning assets		864,036								835,459
Total assets	$	10,642,460							$	10,302,730

Interest-bearing liabilities:
Interest-bearing demand	$	1,972,520		$	41,673		2.82	%	$	2,244,978		$	25,465		1.52	%
Money market accounts		1,235,520			25,349		2.74	%		894,520			15,334		2.29	%
Savings and club deposits		673,930			3,920		0.78	%		819,804			1,384		0.23	%
Certificates of deposit		2,550,634			79,498		4.16	%		2,165,778			39,550		2.44	%
Total interest-bearing deposits		6,432,604			150,440		3.12	%		6,125,080			81,733		1.78	%
FHLB advances		1,507,045			55,316		4.90	%		1,254,637			43,806		4.67	%
Notes payable		—			—		—	%		30,148			895		3.97	%
Junior subordinated debentures		7,023			486		9.24	%		7,377			457		8.28	%
Other borrowings		73			3		5.49	%		—			—		—	%
Total borrowings		1,514,141			55,805		4.92	%		1,292,162			45,158		4.67	%
Total interest-bearing liabilities		7,946,745		$	206,245		3.47	%		7,417,242		$	126,891		2.29	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,406,666								1,572,497
Other non-interest-bearing liabilities		243,848								225,629
Total liabilities		9,597,259								9,215,368
Total stockholders’ equity		1,045,201								1,087,362
Total liabilities and stockholders’ equity	$	10,642,460							$	10,302,730

Net interest income				$	131,555							$	160,537
Interest rate spread							1.15	%							1.77	%
Net interest-earning assets	$	1,831,679							$	2,050,029
Net interest margin							1.80	%							2.27	%
Ratio of interest-earning assets to interest-bearing liabilities		123.05	%							127.64	%

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

	Average Yields/Costs by Quarter
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Yield on interest-earning assets:
Loans		5.00	%		4.93	%		4.79	%		4.66	%		4.47	%
Securities		2.90			2.89			2.65			2.58			2.37
Other interest-earning assets		6.72			6.30			6.06			5.64			5.91
Total interest-earning assets		4.70	%		4.64	%		4.50	%		4.39	%		4.17	%

Cost of interest-bearing liabilities:
Total interest-bearing deposits		3.21	%		3.14	%		3.02	%		2.76	%		2.31	%
Total borrowings		4.87			4.92			4.98			4.96			4.70
Total interest-bearing liabilities		3.52	%		3.49	%		3.38	%		3.18	%		2.70	%

Interest rate spread		1.18	%		1.15	%		1.12	%		1.21	%		1.47	%
Net interest margin		1.84	%		1.81	%		1.75	%		1.85	%		2.06	%

Ratio of interest-earning assets to interest-bearing liabilities		123.06	%		123.03	%		123.06	%		125.32	%		127.46	%

COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Selected Financial Highlights

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
SELECTED FINANCIAL RATIOS ⁽¹⁾:
Return on average assets		0.23	%		0.17	%		(0.04	)%		0.25	%		0.36	%
Core return on average assets		0.23	%		0.20	%		0.02	%		0.38	%		0.36	%
Return on average equity		2.32	%		1.77	%		(0.45	)%		2.31	%		3.23	%
Core return on average equity		2.29	%		2.06	%		0.18	%		3.55	%		3.24	%
Core return on average tangible equity		2.58	%		2.34	%		0.20	%		3.99	%		3.64	%
Interest rate spread		1.18	%		1.15	%		1.12	%		1.21	%		1.47	%
Net interest margin		1.84	%		1.81	%		1.75	%		1.85	%		2.06	%
Non-interest income to average assets		0.33	%		0.35	%		0.28	%		0.42	%		0.33	%
Non-interest expense to average assets		1.60	%		1.74	%		1.74	%		1.80	%		1.67	%
Efficiency ratio		78.95	%		86.83	%		91.96	%		84.82	%		75.12	%
Core efficiency ratio		79.14	%		85.34	%		88.39	%		76.93	%		75.09	%
Average interest-earning assets to average interest-bearing liabilities		123.06	%		123.03	%		123.06	%		125.32	%		127.46	%
Net charge-offs to average outstanding loans		0.14	%		0.03	%		0.26	%		0.01	%		0.09	%

⁽¹⁾ Ratios are annualized when appropriate.

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

Non-accrual loans	$	28,014		$	25,281		$	22,935		$	12,618		$	15,150
90+ and still accruing		—			—			—			—			—
Non-performing loans		28,014			25,281			22,935			12,618			15,150
Real estate owned		1,974			1,974			—			—			—
Total non-performing assets	$	29,988		$	27,255		$	22,935		$	12,618		$	15,150

Non-performing loans to total gross loans		0.36	%		0.33	%		0.30	%		0.16	%		0.19	%
Non-performing assets to total assets		0.28	%		0.25	%		0.22	%		0.12	%		0.15	%
Allowance for credit losses on loans (“ACL”)	$	58,495		$	57,062		$	55,401		$	55,096		$	54,113
ACL to total non-performing loans		208.81	%		225.71	%		241.56	%		436.65	%		357.18	%
ACL to gross loans		0.75	%		0.73	%		0.71	%		0.70	%		0.69	%

LOAN DATA:
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(In thousands)
Real estate loans:
One-to-four family	$	2,737,190		$	2,764,177		$	2,778,932		$	2,792,833		$	2,791,939
Multifamily		1,399,000			1,409,316			1,429,369			1,409,187			1,417,233
Commercial real estate		2,312,759			2,316,252			2,318,178			2,377,077			2,374,488
Construction		510,439			462,880			437,566			443,094			390,940
Commercial business loans		586,447			554,768			538,260			533,041			546,750
Consumer loans:
Home equity loans and advances		261,041			260,427			260,786			266,632			267,016
Other consumer loans		2,877			2,689			2,601			2,801			2,586
Total gross loans		7,809,753			7,770,509			7,765,692			7,824,665			7,790,952
Purchased credit deteriorated loans		11,795			12,150			14,945			15,089			15,228
Net deferred loan costs, fees and purchased premiums and discounts		35,642			36,352			34,992			34,783			34,360
Allowance for credit losses		(58,495	)		(57,062	)		(55,401	)		(55,096	)		(54,113	)
Loans receivable, net	$	7,798,695		$	7,761,949		$	7,760,228		$	7,819,441		$	7,786,427

CAPITAL RATIOS:
	September 30,			December 31,
	2024 ⁽¹⁾			2023
Company:
Total capital (to risk-weighted assets)		14.37	%		14.08	%
Tier 1 capital (to risk-weighted assets)		13.59	%		13.32	%
Common equity tier 1 capital (to risk-weighted assets)		13.50	%		13.23	%
Tier 1 capital (to adjusted total assets)		10.16	%		10.04	%

Columbia Bank:
Total capital (to risk-weighted assets)		14.44	%		14.02	%
Tier 1 capital (to risk-weighted assets)		13.61	%		13.22	%
Common equity tier 1 capital (to risk-weighted assets)		13.61	%		13.22	%
Tier 1 capital (to adjusted total assets)		9.62	%		9.48	%

Freehold Bank:
Total capital (to risk-weighted assets)		25.98	%		22.49	%
Tier 1 capital (to risk-weighted assets)		25.41	%		21.81	%
Common equity tier 1 capital (to risk-weighted assets)		25.41	%		21.81	%
Tier 1 capital (to adjusted total assets)		16.63	%		15.27	%

⁽¹⁾ Estimated ratios at September 30, 2024

Reconciliation of GAAP to Non-GAAP Financial Measures

Book and Tangible Book Value per Share
	September 30,			December 31,
	2024			2023
	(Dollars in thousands)

Total stockholders’ equity	$	1,079,150		$	1,040,335
Less: goodwill		(110,715	)		(110,715	)
Less: core deposit intangible		(9,496	)		(11,155	)
Total tangible stockholders’ equity	$	958,939		$	918,465

Shares outstanding		104,725,436			104,918,905

Book value per share	$	10.30		$	9.92
Tangible book value per share	$	9.16		$	8.75

Reconciliation of Core Net Income
	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024		2023
	(In thousands)

Net income	$	6,185		$	9,130	$	9,570	$	29,517
Add: loss on securities transactions, net of tax		—			—		1,130		9,249
Less/add: FDIC special assessment, net of tax		(107	)		—		385		—
Add: severance expense from reduction in workforce, net of tax		—			—		67		1,390
Add: merger-related expenses, net of tax		19			11		691		241
Add: litigation expenses, net of tax		—			—		—		262
Core net income	$	6,097		$	9,141	$	11,843	$	40,659

Return on Average Assets
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Net income	$	6,185		$	9,130		$	9,570		$	29,517

Average assets	$	10,682,627		$	10,199,096		$	10,642,460		$	10,302,730

Return on average assets		0.23	%		0.36	%		0.12	%		0.38	%

Core net income	$	6,097		$	9,141		$	11,843		$	40,659

Core return on average assets		0.23	%		0.36	%		0.15	%		0.53	%

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

Return on Average Equity
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Total average stockholders’ equity	$	1,061,252		$	1,119,870		$	1,045,201		$	1,087,362
Add: loss on securities transactions, net of tax		—			—			1,130			9,249
Less/add: FDIC special assessment, net of tax		(107	)		—			385			—
Add: severance expense from reduction in workforce, net of tax		—			—			67			1,390
Add: merger-related expenses, net of tax		19			11			691			241
Add: litigation expenses, net of tax		—			—			—			262
Core average stockholders’ equity	$	1,061,164		$	1,119,881		$	1,047,474		$	1,098,504

Return on average equity		2.32	%		3.23	%		1.22	%		3.63	%

Core return on core average equity		2.29	%		3.24	%		1.51	%		4.95	%

Return on Average Tangible Equity
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Total average stockholders’ equity	$	1,061,252		$	1,119,870		$	1,045,201		$	1,087,362
Less: average goodwill		(110,715	)		(110,715	)		(110,715	)		(110,715	)
Less: average core deposit intangible		(9,842	)		(12,109	)		(10,391	)		(12,989	)
Total average tangible stockholders’ equity	$	940,695		$	997,046		$	924,095		$	963,658

Core return on average tangible equity		2.58	%		3.64	%		1.71	%		5.64	%

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

Efficiency Ratios
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	(Dollars in thousands)

Net interest income	$	45,275		$	48,522		$	131,555		$	160,537
Non-interest income		8,978			8,602			25,610			16,130
Total income	$	54,253		$	57,124		$	157,165		$	176,667

Non-interest expense	$	42,834		$	42,910		$	134,739		$	134,418

Efficiency ratio		78.95	%		75.12	%		85.73	%		76.09	%

Non-interest income	$	8,978		$	8,602		$	25,610		$	16,130
Add: loss on securities transactions		—			—			1,256			10,847
Core non-interest income	$	8,978		$	8,602		$	26,866		$	26,977

Non-interest expense	$	42,834		$	42,910		$	134,739		$	134,418
Add/less: FDIC special assessment, net		126			—			(439	)		—
Less: severance expense from reduction in workforce		—			—			(74	)		(1,605	)
Less: merger-related expenses		(23	)		(14	)		(737	)		(280	)
Less: litigation expenses		—			—			—			(317	)
Core non-interest expense	$	42,937		$	42,896		$	133,489		$	132,216

Core efficiency ratio		79.14	%		75.09	%		84.26	%		70.51	%

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

The MIL Network –

January 25, 2025

MIL-OSI: Independent Bank Corporation Reports 2024 Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

Third Quarter Highlights

Highlights for the third quarter of 2024 include:

Increases in net interest income of $0.5 million (or 4.9% annualized) from June 30, 2024;
An increase in tangible book value per share of $3.69 (22.3%) over the third quarter of 2023;
Net growth in core deposits of $100.1 million (or 8.9% annualized) from June 30, 2024;
Net growth in loans of $90.4 million (or 9.3% annualized) from June 30, 2024; and
The payment of a 24 cent per share dividend on common stock on August 15, 2024.

GRAND RAPIDS, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2024 net income of $13.8 million, or $0.65 per diluted share, versus net income of $17.5 million, or $0.83 per diluted share, in the prior-year period.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased with our third quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall loans increased 9.3% (annualized), while core deposits are up 8.9% (annualized). We were able to generate net interest income growth on both a linked quarter basis and on a year over year quarterly basis. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. Our credit metrics continue to be excellent, with watch credits and non-performing assets near historic lows. These fundamentals continue to drive good growth in tangible book value per share (22%) compared to the prior year quarter. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the on-going strategic initiative to add talented bankers to our team, we are optimistic about continuing these growth trends for the remainder of the year and into 2025.”

Significant items impacting comparable third quarter 2024 and 2023 results include the following:

Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024, as compared to $1.6 million ($0.06 per diluted share, after taxes) for the three-months ended September 30, 2023.

Operating Results

The Company’s net interest income totaled $41.9 million during the third quarter of 2024, an increase of $2.4 million, or 6.2% from the year-ago period, and an increase of $0.5 million, or 1.2%, from the second quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.37% during the third quarter of 2024, compared to 3.23% in the year-ago period, and 3.40% in the second quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. The increase in net interest income compared to the linked quarter was due to an increase in average interest earning assets that was partially offset by a decrease in the net interest margin. Average interest-earning assets were $4.99 billion in the third quarter of 2024, compared to $4.89 billion in the year ago quarter and $4.89 billion in the second quarter of 2024.

Non-interest income totaled $9.5 million for the third quarter of 2024, compared to $15.6 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

Net gains on mortgage loans in the third quarters of 2024 and 2023, were approximately $2.2 million and $2.1 million, respectively. The comparative quarterly increase in net gains on mortgage loans was primarily due to an increase in both gain on sale margin on mortgage loans sold and a increase in the volume of mortgage loans sold.

Mortgage loan servicing, net, generated income (expense) of $(3.1) million and $2.7 million in the third quarters of 2024 and 2023, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Mortgage loan servicing, net activity is summarized in the following table:

	Three months ended						Nine months ended
	9/30/2024			9/30/2023			9/30/2024			9/30/2023
	(In thousands)
Mortgage loan servicing, net:
Revenue, net	$	2,248		$	2,197		$	6,681		$	6,612
Fair value change due to price		(4,155	)		1,556			(1,979	)		3,364
Fair value change due to pay-downs		(1,223	)		(1,085	)		(3,016	)		(2,908	)
Total	$	(3,130	)	$	2,668		$	1,686		$	7,068

Non-interest expenses totaled $32.6 million in the third quarter of 2024, compared to $32.0 million in the year-ago period.

The Company recorded income tax expense of $3.5 million in the third quarter of 2024. This compares to an income tax expense of $4.1 million in the third quarter of 2023. The changes in income tax expense principally reflect changes in pre-tax earnings in 2024 relative to 2023.

Asset Quality

A breakdown of non-performing loans by loan type is as follows:

	9/30/2024			12/31/2023			9/30/2023
Loan Type	(Dollars in thousands)
Commercial	$	59		$	28		$	31
Mortgage		6,525			6,425			6,137
Installment		666			970			801
Sub total		7,250			7,423			6,969
Less – government guaranteed loans		2,102			2,191			2,254
Total non-performing loans	$	5,148		$	5,232		$	4,715
Ratio of non-performing loans to total portfolio loans		0.13	%		0.14	%		0.13	%
Ratio of non-performing assets to total assets		0.11	%		0.11	%		0.10	%
Ratio of allowance for credit losses to total non-performing loans		1115.85	%		1044.69	%		1176.99	%

The provision for credit losses was an expense of $1.49 million and $1.35 million in the third quarters of 2024 and 2023, respectively. We recorded loan net charge offs (recoveries) of $0.31 million and $(0.18) million in the third quarters of 2024 and 2023, respectively. At September 30, 2024, the allowance for credit losses for loans totaled $57.4 million, or 1.46% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.

Balance Sheet, Capital and Liquidity

Total assets were $5.26 billion at September 30, 2024, a decrease of $4.5 million from December 31, 2023. Loans, excluding loans held for sale, were $3.94 billion at September 30, 2024, compared to $3.79 billion at December 31, 2023. Deposits totaled $4.63 billion at September 30, 2024, an increase of $4.0 million from December 31, 2023. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal and time deposits that were partially offset by a decrease in non-interest bearings deposits and brokered time deposits.

Cash and cash equivalents totaled $121.6 million at September 30, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $589.0 million at September 30, 2024, versus $679.4 million at December 31, 2023.

Total shareholders’ equity was $452.4 million at September 30, 2024, or 8.60% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $422.5 million at September 30, 2024, or $20.22 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decrease in accumulated other comprehensive loss.

The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios	9/30/2024			12/31/2023			Well Capitalized Minimum

Tier 1 capital to average total assets		9.36	%		8.80	%		5.00	%
Tier 1 common equity to risk-weighted assets		11.74	%		11.21	%		6.50	%
Tier 1 capital to risk-weighted assets		11.74	%		11.21	%		8.00	%
Total capital to risk-weighted assets		13.00	%		12.46	%		10.00	%

At September 30, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.11 billion and $471.7 million, respectively. We also had approximately $771.3 million in fair value of unpledged securities AFS and HTM at September 30, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $718.0 million.

Share Repurchase Plan

On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2024. The Company did not repurchase any shares of common stock during the first nine months of 2024.

Earnings Conference Call

Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, October 24, 2024.

To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 957797). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/824908063.

A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 159381). The replay will be available through October 31, 2024.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

For more information, please visit our Web site at: IndependentBank.com.

Forward-Looking Statements
This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition

	September 30, 2024			December 31, 2023
	(Unaudited)
	(In thousands, except share amounts)
Assets
Cash and due from banks	$	61,503		$	68,208
Interest bearing deposits		60,057			101,573
Cash and Cash Equivalents		121,560			169,781
Securities available for sale		588,950			679,350
Securities held to maturity (fair value of $314,638 at September 30, 2024 and $318,606 at December 31, 2023)		343,362			353,988
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		16,099			16,821
Loans held for sale, carried at fair value		14,029			12,063
Loans
Commercial		1,825,247			1,679,731
Mortgage		1,511,400			1,485,872
Installment		605,640			625,298
Total Loans		3,942,287			3,790,901
Allowance for credit losses		(57,444	)		(54,658	)
Net Loans		3,884,843			3,736,243
Other real estate and repossessed assets, net		781			569
Property and equipment, net		35,250			35,523
Bank-owned life insurance		54,017			54,341
Capitalized mortgage loan servicing rights, carried at fair value		40,204			42,243
Other intangibles		1,617			2,004
Goodwill		28,300			28,300
Accrued income and other assets		130,256			132,500
Total Assets	$	5,259,268		$	5,263,726
Liabilities and Shareholders’ Equity
Deposits
Non-interest bearing	$	1,023,739		$	1,076,093
Savings and interest-bearing checking		1,947,571			1,905,701
Reciprocal		995,469			832,020
Time		620,446			524,325
Brokered time		39,650			284,740
Total Deposits		4,626,875			4,622,879
Other borrowings		—			50,026
Subordinated debt		39,567			39,510
Subordinated debentures		39,779			39,728
Accrued expenses and other liabilities		100,678			107,134
Total Liabilities		4,806,899			4,859,277

Shareholders’ Equity
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding		—			—
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,893,800 shares at September 30, 2024 and 20,835,633 shares at December 31, 2023		318,216			317,483
Retained earnings		192,405			159,108
Accumulated other comprehensive loss		(58,252	)		(72,142	)
Total Shareholders’ Equity		452,369			404,449
Total Liabilities and Shareholders’ Equity	$	5,259,268		$	5,263,726

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations

	Three Months Ended								Nine Months Ended
	September 30,			June 30,			September 30,		September 30,
	2024			2024			2023		2024			2023
	(Unaudited)
	(In thousands, except per share amounts)
Interest Income
Interest and fees on loans	$	58,410		$	56,786		$	51,419	$	170,239		$	143,392
Interest on securities
Taxable		4,502			4,713			5,865		14,466			17,668
Tax-exempt		3,404			3,400			3,409		10,195			9,775
Other investments		2,018			1,439			1,739		4,898			3,481
Total Interest Income		68,334			66,338			62,432		199,798			174,316
Interest Expense
Deposits		24,462			22,876			20,743		70,148			51,964
Other borrowings and subordinated debt and debentures		2,018			2,116			2,262		6,253			6,134
Total Interest Expense		26,480			24,992			23,005		76,401			58,098
Net Interest Income		41,854			41,346			39,427		123,397			116,218
Provision for credit losses		1,488			19			1,350		2,251			6,827
Net Interest Income After Provision for Credit Losses		40,366			41,327			38,077		121,146			109,391
Non-interest Income
Interchange income		4,146			3,401			4,100		10,698			10,660
Service charges on deposit accounts		3,085			2,937			3,309		8,894			9,300
Net gains (losses) on assets
Mortgage loans		2,177			1,333			2,099		4,874			5,475
Equity securities at fair value		(8	)		2,693			—		2,685			—
Securities available for sale		(145	)		—			—		(414	)		(222	)
Mortgage loan servicing, net		(3,130	)		2,091			2,668		1,686			7,068
Other		3,383			2,717			3,435		8,818			9,298
Total Non-interest Income		9,508			15,172			15,611		37,241			41,579
Non-interest Expense
Compensation and employee benefits		20,048			21,251			19,975		62,069			59,916
Data processing		3,379			3,257			3,071		9,891			8,953
Occupancy, net		1,893			1,886			1,971		5,853			5,975
Interchange expense		1,149			1,127			1,119		3,373			3,222
Furniture, fixtures and equipment		932			948			927		2,834			2,782
FDIC deposit insurance		664			695			677		2,141			2,209
Loan and collection		657			699			520		1,868			1,718
Advertising		581			788			360		1,860			1,286
Legal and professional		687			544			543		1,717			1,623
Communications		519			499			568		1,633			1,871
Costs (recoveries) related to unfunded lending commitments		113			(137	)		451		(676	)		76
Other		1,961			1,776			1,854		5,546			5,610
Total Non-interest Expense		32,583			33,333			32,036		98,109			95,241
Income Before Income Tax		17,291			23,166			21,652		60,278			55,729
Income tax expense		3,481			4,638			4,109		11,949			10,405
Net Income	$	13,810		$	18,528		$	17,543	$	48,329		$	45,324
Net Income Per Common Share
Basic	$	0.66		$	0.89		$	0.84	$	2.31		$	2.16
Diluted	$	0.65		$	0.88		$	0.83	$	2.29		$	2.14

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Net interest income	$	41,854		$	41,346		$	40,197		$	40,111		$	39,427
Provision for credit losses		1,488			19			744			(617	)		1,350
Non-interest income		9,508			15,172			12,561			9,097			15,611
Non-interest expense		32,583			33,333			32,193			31,878			32,036
Income before income tax		17,291			23,166			19,821			17,947			21,652
Income tax expense		3,481			4,638			3,830			4,204			4,109
Net income	$	13,810		$	18,528		$	15,991		$	13,743		$	17,543

Basic earnings per share	$	0.66		$	0.89		$	0.77		$	0.66		$	0.84
Diluted earnings per share		0.65			0.88			0.76			0.65			0.83
Cash dividend per share		0.24			0.24			0.24			0.23			0.23

Average shares outstanding		20,896,019			20,901,741			20,877,067			20,840,680			20,922,431
Average diluted shares outstanding		21,115,273			21,105,387			21,079,607			21,049,030			21,114,445

Performance Ratios
Return on average assets		1.04	%		1.44	%		1.24	%		1.04	%		1.34	%
Return on average equity		12.54			17.98			15.95			14.36			18.68
Efficiency ratio (1)		62.82			61.49			60.26			64.27			57.52

As a Percent of Average Interest-Earning Assets (1)
Interest income		5.48	%		5.45	%		5.34	%		5.29	%		5.10	%
Interest expense		2.11			2.05			2.04			2.03			1.87
Net interest income		3.37			3.40			3.30			3.26			3.23

Average Balances
Loans	$	3,909,954		$	3,849,199		$	3,810,526		$	3,764,752		$	3,694,534
Securities		933,750			944,435			999,140			1,027,240			1,071,211
Total earning assets		4,985,842			4,893,367			4,910,669			4,928,697			4,892,208
Total assets		5,275,623			5,181,317			5,201,452			5,233,666			5,192,114
Deposits		4,616,119			4,531,917			4,561,645			4,612,797			4,577,796
Interest bearing liabilities		3,689,684			3,611,972			3,627,446			3,635,771			3,554,179
Shareholders’ equity		438,077			414,549			403,225			379,614			372,667

(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(unaudited)
	(Dollars in thousands except per share data)
End of Period
Capital
Tangible common equity ratio		8.08	%		7.63	%		7.41	%		7.15	%		6.67	%
Tangible common equity ratio excluding accumulated other comprehensive loss		8.99			8.76			8.57			8.31			8.20
Average equity to average assets		8.30			8.00			7.75			7.25			7.18
Total capital to risk-weighted assets (2)		14.25			14.21			13.85			13.71			13.58
Tier 1 capital to risk-weighted assets (2)		12.06			12.01			11.65			11.50			11.37
Common equity tier 1 capital to risk-weighted assets (2)		11.16			11.09			10.73			10.58			10.44
Tier 1 capital to average assets (2)		9.63			9.59			9.29			9.03			8.94
Common shareholders’ equity per share of common stock	$	21.65		$	20.60		$	19.88		$	19.41		$	17.99
Tangible common equity per share of common stock		20.22			19.16			18.44			17.96			16.53
Total shares outstanding		20,893,800			20,899,358			20,903,677			20,835,633			20,850,455

Selected Balances
Loans	$	3,942,287		$	3,851,889		$	3,839,965		$	3,790,901		$	3,741,486
Securities		932,312			936,194			963,577			1,033,338			1,043,540
Total earning assets		4,964,784			4,979,555			4,949,496			4,954,696			4,884,720
Total assets		5,259,268			5,277,500			5,231,255			5,263,726			5,200,018
Deposits		4,626,875			4,614,328			4,582,414			4,622,879			4,585,612
Interest bearing liabilities		3,682,482			3,694,025			3,677,060			3,676,050			3,573,187
Shareholders’ equity		452,369			430,459			415,570			404,449			374,998

(2) September 30, 2024 are Preliminary.

Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation

Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
	(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent (“FTE”)

Net interest income	$	41,854		$	39,427		$	123,397		$	116,218
Add: taxable equivalent adjustment		158			202			513			722
Net interest income – taxable equivalent	$	42,012		$	39,629		$	123,910		$	116,940
Net interest margin (GAAP) (1)		3.35	%		3.21	%		3.34	%		3.25	%
Net interest margin (FTE) (1)		3.37	%		3.23	%		3.35	%		3.26	%

(1) Annualized.

Tangible Common Equity Ratio

	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
	(Dollars in thousands)
Common shareholders’ equity	$	452,369		$	430,459		$	415,570		$	404,449		$	374,998
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		1,617			1,746			1,875			2,004			2,141
Tangible common equity		422,452			400,413			385,395			374,145			344,557
Addition:
Accumulated other comprehensive loss for regulatory purposes		52,454			65,030			65,831			66,344			86,507
Tangible common equity excluding other comprehensive loss adjustments	$	474,906		$	465,443		$	451,226		$	440,489		$	431,064

Total assets	$	5,259,268		$	5,277,500		$	5,231,255		$	5,263,726		$	5,200,018
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		1,617			1,746			1,875			2,004			2,141
Tangible assets		5,229,351			5,247,454			5,201,080			5,233,422			5,169,577
Addition:
Net unrealized losses on available for sale securities and derivatives, net of tax		52,454			65,030			65,831			66,344			86,507
Tangible assets excluding other comprehensive loss adjustments	$	5,281,805		$	5,312,484		$	5,266,911		$	5,299,766		$	5,256,084

Common equity ratio		8.60	%		8.16	%		7.94	%		7.68	%		7.21	%
Tangible common equity ratio		8.08	%		7.63	%		7.41	%		7.15	%		6.67	%
Tangible common equity ratio excluding other comprehensive loss		8.99	%		8.76	%		8.57	%		8.31	%		8.20	%

Tangible Common Equity per Share of Common Stock:

Common shareholders’ equity	$	452,369		$	430,459		$	415,570		$	404,449		$	374,998
Tangible common equity	$	422,452		$	400,413		$	385,395		$	374,145		$	344,557
Shares of common stock outstanding (in thousands)		20,894			20,899			20,904			20,836			20,850

Common shareholders’ equity per share of common stock	$	21.65		$	20.60		$	19.88		$	19.41		$	17.99
Tangible common equity per share of common stock	$	20.22		$	19.16		$	18.44		$	17.96		$	16.53

The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

Contact:	William B. Kessel, President and CEO, 616.447.3933
	Gavin A. Mohr, Chief Financial Officer, 616.447.3929

The MIL Network –

January 25, 2025

MIL-OSI: Hanmi Financial Declares Cash Dividend of $0.25 per share

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Oct. 24, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. The dividend will be paid on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements

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

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

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

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

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

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

Source: Hanmi Bank

The MIL Network –

January 25, 2025

MIL-OSI: NANO Nuclear Energy Announces Pricing of Upsized $36 Million Underwritten Offering

Source: GlobeNewswire (MIL-OSI)

New York, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear”), a vertically integrated advanced nuclear energy and technology company developing portable clean nuclear energy solutions, today announced that it has priced an upsized firm commitment, registered underwritten public offering of 2,117,646 shares of common stock and common stock purchase warrants to purchase 1,058,823 shares of common stock.

Each share and associated warrant is being sold at a public offering price of $17.00, for gross proceeds of approximately $36 million, before deducting underwriting discounts and offering expenses. In addition, NANO Nuclear has granted the underwriter a 30-day overallotment option to purchase up to an additional 317,646 shares common stock and/or common stock purchase warrants to purchase 158,823 shares of common stock at the public offering price for gross proceeds of up to $5.4 million, less underwriting discounts and expenses.

While the shares and associated warrants were marketed as a unit, such units have no stand-alone rights and will not be certificated or issued as stand-alone securities.

The warrants are exercisable immediately, have a term of five years, and have an exercise price of $17.00 per share. The warrants will not trade on any market.

The Benchmark Company, LLC is acting as sole book-running manager for the offering.

NANO Nuclear intends to use the net proceeds from this offering for (i) research and development of its products and technologies, including its ‘ZEUS’ and ‘ODIN’ microreactors and nuclear fuel transportation design optimization, fuel facility investigations and development, test work and scoping studies, and other technology research and development; (ii) marketing, promotion and business development activities; and (iii) regulatory compliance, intellectual property protection, hiring additional employees, retaining additional contractors and building out NANO Nuclear’s new Nuclear Technology Headquarters in Oak Ridge, Tennessee. NANO Nuclear may also use a portion of the net proceeds to acquire, license and invest in complementary products, technologies, or additional businesses, although NANO Nuclear currently has no agreements or commitments with respect to any such transaction.

The offering is expected to close on or about October 25, 2024, subject to the satisfaction of customary closing conditions.

Registration statements relating to these securities were previously filed with the U.S. Securities and Exchange Commission (“SEC”) and have become effective. The offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from The Benchmark Company, LLC, 150 East 58th St., 17th Floor, New York, NY 10155, by telephone: (212) 312-6700, or by email at Prospectus@benchmarkcompany.com.

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

About NANO Nuclear Energy Inc.

NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across four business lines: (i) cutting edge portable microreactor technology, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation and (iv) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

Led by a world-class nuclear engineering team, NANO Nuclear’s products in technical development are “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.

Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

For further information, please contact:

Email: IR@NANONuclearEnergy.com
Business Tel: (212) 634-9206

Cautionary Note Regarding Forward Looking Statements

This news release and statements of NANO Nuclear’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements (including statements related to the public offering, including the proposed use of proceeds from such offering, as described herein) related to future events, which may impact our expected future business and financial performance, and often contain words such as “seek,” “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, some of which may be beyond our control. Readers are cautioned that actual results may differ materially and adversely from the results implied in forward-looking statements. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology, including difficulties with design and testing, cost overruns, regulatory delays and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (vi) similar risks and uncertainties associated with the business of a start-up business operating a highly regulated industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all of the factors that could cause actual results to differ from those discussed in any forward-looking statement, and the Company therefore encourages investors to review other factors that may affect future results in the Company’s filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Readers are cautioned not to place undue reliance on forward-looking statements, which apply only as of the date of this news release, and forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

Attachment

NANO Nuclear Energy Inc.

The MIL Network –

January 25, 2025

MIL-OSI: Key Advocates Urge CMS to Clarify that Fully Implanted Active Middle Ear Hearing Devices are Prosthetic Devices for Purposes of Medicare Coverage

Source: GlobeNewswire (MIL-OSI)

Twelve Members of the Independence Through Enhancement of Medicare and Medicaid (ITEM) Coalition Sign Letter to CMS Seeking Clarification of Prior Decision Making and Action to Bring Novel Hearing Technology to Medicare Beneficiaries

WHITE BEAR LAKE, Minnesota, Oct. 24, 2024 (GLOBE NEWSWIRE) — Envoy Medical®, Inc. (“Envoy Medical”) (NASDAQ: “COCH”), a hearing health company focused on fully implanted hearing systems, expresses gratitude to the Independence Through Enhancement of Medicare and Medicaid (“ITEM”) Coalition and the twelve ITEM member signatories for sending a strong letter to CMS supporting a reconsideration of the benefit category for fully implanted active middle ear hearing devices.

The letter states in part: “[W]e request that you please provide an explanation as to CMS’ reasoning for determining that fully implanted active middle ear hearing devices do not qualify as an exception to the hearing aid exclusion under statute. In addition, we believe CMS has the authority to reconsider their decision and urge you to clarify that this technology qualifies as a prosthetic device for purposes of Medicare coverage.”
ITEM is a national consumer- and clinician-led coalition advocating for access to and coverage of assistive devices, technologies, and related services for people with injuries, illnesses, disabilities, and chronic conditions of all ages. Members represent individuals with a wide range of disabling conditions, as well as the providers who serve them.

In the letter to CMS, ITEM referenced the profound impact that hearing loss has on quality of life of Medicare beneficiaries. The Hearing Loss Association of America (HLAA) and Alexander Graham Bell Association for the Deaf and Hard of Hearing (AGBA) were two of the twelve organizations willing to lend their voice and influence to the Medicare beneficiaries with significant hearing loss who want access to novel hearing implants.

“We are grateful that the ITEM Coalition took up such a critically important issue and that twelve coalition member organizations signed the letter urging CMS to do the right thing,” commented Brent Lucas, Envoy Medical CEO. “It especially hits home that the Coalition’s mission is in their name — ‘Independence Through Enhancement of Medicare and Medicaid’ – and we strongly believe that fully implanted hearing devices can help Medicare beneficiaries with hearing impairments significantly regain, or maintain, a level of independence that is good for them and for society as a whole.”

Envoy Medical is one of the few companies worldwide that has a fully implanted active middle ear implant and is currently the only company that has an FDA-approved, fully implanted active middle ear hearing device.

About the Esteem® Fully Implanted Active Middle Ear Implant (FI-AMEI)

The Esteem fully implanted active middle ear implant (FI-AMEI) is the only FDA-approved, fully implanted* hearing device for adults diagnosed with moderate to severe sensorineural hearing loss allowing for 24/7 hearing capability using the ear’s natural anatomy. The Esteem FI-AMEI hearing implant is invisible and requires no externally worn components and nothing is placed in the ear canal for it to function. Unlike hearing aids, you never put it on or take it off. You can’t lose it. You don’t clean it. The Esteem FI-AMEI hearing implant offers true 24/7 hearing.

*Once activated, the external Esteem FI-AMEI Personal Programmer is not required for daily use.

Important safety information for the Esteem FI-AMEI can be found at: https://www.envoymedical.com/safety-information.

About the Fully Implanted Acclaim® Cochlear Implant

We believe the fully implanted Acclaim Cochlear Implant (“Acclaim CI”) will be a first-of-its-kind fully implanted cochlear implant. Envoy Medical’s fully implanted technology includes a sensor designed to leverage the natural anatomy of the ear instead of a microphone to capture sound.

The Acclaim CI is designed to address severe to profound sensorineural hearing loss that is not adequately addressed by hearing aids. The Acclaim CI is expected to be indicated for adults who have been deemed adequate candidates by a qualified physician.

The Acclaim Cochlear Implant received the Breakthrough Device Designation from the U.S. Food and Drug Administration (FDA) in 2019. We believe the Acclaim CI was the first hearing-focused device to receive Breakthrough Device Designation.

CAUTION The fully implanted Acclaim Cochlear Implant is an investigational device. Limited by Federal (or United States) law to investigational use.

Additional Information and Where to Find It

Copies of the documents filed by Envoy Medical with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-Looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Such statements may include, but are not limited to, statements regarding the expectations of Envoy Medical concerning the outlook for its business, productivity, plans and goals for future operational improvements and capital investments; the potential for passage of legislation or change to CMS’ position related to reimbursement for active middle ear hearing devices; the impact that such proposed legislation might have on the hearing health market, reimbursement for the Esteem FI-AMEI device, and the Envoy Medical business, and future market conditions or economic performance, as well as any information concerning possible or assumed future operations of Envoy Medical. The forward-looking statements contained in this press release reflect Envoy Medical’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause its actual results to differ significantly from those expressed in any forward-looking statement. Envoy Medical does not guarantee that the events described will happen as described (or that they will happen at all). These forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to changes in the market price of shares of Envoy Medical’s Class A Common Stock; changes in or removal of Envoy Medical’s shares inclusion in any index; Envoy Medical’s success in retaining or recruiting, or changes required in, its officers, key employees or directors; unpredictability in the medical device industry, the regulatory process to approve medical devices, and the clinical development process of Envoy Medical products; competition in the medical device industry, and the failure to introduce new products and services in a timely manner or at competitive prices to compete successfully against competitors; disruptions in relationships with Envoy Medical’s suppliers, or disruptions in Envoy Medical’s own production capabilities for some of the key components and materials of its products; changes in the need for capital and the availability of financing and capital to fund these needs; changes in interest rates or rates of inflation; legal, regulatory and other proceedings could be costly and time-consuming to defend; changes in applicable laws or regulations, or the application thereof on Envoy Medical; a loss of any of Envoy Medical’s key intellectual property rights or failure to adequately protect intellectual property rights; the effects of catastrophic events, including war, terrorism and other international conflicts; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements” in the Annual Report on Form 10-K filed by Envoy Medical on April 1, 2024, and in other reports Envoy Medical files, with the SEC. If any of these risks materialize or Envoy Medical’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. While forward-looking statements reflect Envoy Medical’s good faith beliefs, they are not guarantees of future performance. Envoy Medical disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Envoy Medical.

###

Investor Contact:
CORE IR
516-222-2560
investorrelations@envoymedical.com

The MIL Network –

January 25, 2025

MIL-OSI: Equipment Leasing and Finance Association CapEx Finance Index: September 2024

Source: GlobeNewswire (MIL-OSI)

********************************************************************************************************
Note to readers: ELFA has updated the name of the Monthly Leasing and Finance Index (MLFI-25) to the CapEx Finance Index (CFI) to better reflect what it measures and how it impacts the broader U.S. economy.
********************************************************************************************************

WASHINGTON, Oct. 24, 2024 (GLOBE NEWSWIRE) —

Demand for equipment picked up. New business volume grew by $10.0 billion from August to September, a monthly increase of 2.2% before rounding. Growth in business volume has been uneven in 2024 but continues to hover around historic highs. The September release suggests that equipment investment continued to expand at a healthy pace at the end of the third quarter.

Bank lending drove new business growth. The sub-index for business volume at banks grew by 10.9% from August to September, which was more than enough to offset the contraction in activity at captives and independents, which declined by 2.3% and 9.8%, respectively. The figure below shows that bank activity has lagged other sources over the last few years, but the latest data suggests that banks may be easing back into the lending and leasing market.

Lenders continue to add headcount. The 12-month change in employment was just over 1.0%, slightly slowing from the 1.2% pace recorded in August. Employment has been a source of strength this year, following nearly five years of persistent declines in headcount.

Credit approvals remained steady. The percentage of credit applications approved ticked down 0.7 percentage points to 75.6%. The approval rate has been hovering around 75% for most of 2024.

Lender balance sheets improved for a second consecutive month. The percentage of credit lines over 30 days past due and charge-offs declined. Both have been trending up over the last two years as borrowing conditions tightened due to the rapid increase in interest rates.

Industry Confidence
The Monthly Confidence Index from ELFA’s affiliate, the Equipment Leasing & Finance Foundation, is 61.8 in October, steady with the September index of 61.9, which was the highest level since January 2022.

Industry Voices

“Our latest CapEx Finance Survey showed that equipment demand continued to defy high interest rates in September. The uptick in bank lending was particularly encouraging and is something I will be watching closely as we approach the end of the year. I wouldn’t be surprised if the next few surveys show a cooling in lending volumes as election uncertainty peaks and some businesses wait for rates to drop further. That said, balance sheets continued to improve, and the percentage of approved new credit applications remained healthy, signs that lenders and borrowers are in a great position to weather any gusts that might come along in the fourth quarter.”
ELFA President and CEO, Leigh Lytle

“A healthy increase in YOY business volume, especially in August and September, validates our 12-month increase in headcount as we continue strengthening our value proposition for all of CEFI’s stakeholders. A decreasing interest rate environment driving increased business volume and net interest margin will enhance bottom-line returns for CEFI and the industry until competitors become more aggressive.” Ricardo E. Rios, CFA, CLFP, President & COO, Commercial Equipment Finance, Inc (CEFI)

About ELFA’s CFI
The CFI is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce’s durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The CFI consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/CFI.

About ELFA
The Equipment Leasing and Finance Association (ELFA) represents financial services companies and manufacturers in the $1 trillion U.S. equipment finance sector. ELFA’s 575 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses’ success, U.S. economic growth, manufacturing and jobs at http://www.elfaonline.org.

Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, avogt@elfaonline.org

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/cee789e6-c777-4190-9b5d-4361b6712379

https://www.globenewswire.com/NewsRoom/AttachmentNg/721cf1e0-33c3-4767-882b-bceb720b01b1

The MIL Network –

January 25, 2025

MIL-OSI: CareCloud To Announce Third Quarter 2024 Results on November 12, 2024

Source: GlobeNewswire (MIL-OSI)

SOMERSET, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology and generative AI solutions for medical practices and health systems nationwide, will release its financial results for the quarter ended September 30, 2024 before the market opens on Tuesday, November 12, 2024. The Company will follow with a conference call for investors at 8:30 a.m. Eastern Time.

The live webcast of the conference call and related presentation slides can be accessed at ir.carecloud.com/events. An audio-only option is available by dialing 201-389-0920 and referencing “CareCloud Third Quarter 2024 Earnings Call.” Investors who opt for audio-only will need to download the related slides at ir.carecloud.com/events.

A replay of the conference call and related presentation slides will be available approximately one hour after conclusion of the call at the same link. An audio-only option can also be accessed by dialing 412-317-6671 and providing the access code 13749163.

About CareCloud

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

Follow CareCloud on LinkedIn, X and Facebook.

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

SOURCE CareCloud

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

Investor Contact:
Stephen Snyder
President
CareCloud, Inc.
ir@carecloud.com

The MIL Network –

January 25, 2025

MIL-OSI: authID to Report Third Quarter 2024 Financial Results on November 7, 2024

Source: GlobeNewswire (MIL-OSI)

DENVER, Oct. 24, 2024 (GLOBE NEWSWIRE) — authID^® (Nasdaq: AUID) (“authID”), a leading provider of secure identity verification and authentication solutions, today announced the Company will report financial results for the third quarter ended September 30, 2024 on Thursday, November 7, 2024. Following issuance of the results release, authID Chief Executive Officer, Rhon Daguro and Chief Financial Officer, Ed Sellitto will host a conference call and webcast at 5:00 p.m. EDT to discuss the financial results and provide a corporate update.

To participate on the live conference call, please dial: (646) 968-2525 in the U.S. or +1 (888) 596-4144 internationally and reference the conference ID 8624132. To avoid delays, participants are encouraged to dial into the conference call 15-minutes ahead of the scheduled start time. A live webcast of the call will be available on the “Events & Presentations” page of the Company’s website at investors.authid.ai. Only participants on the live conference call will be able to ask questions.

A replay of the event and a copy of the presentation will also be available for 90 days at authID’s Investor Relations Events.

About authID Inc.

authID (Nasdaq: AUID) ensures enterprises “Know Who’s Behind the Device™” for every customer or employee login and transaction through its easy-to-integrate, patented, biometric identity platform. authID quickly and accurately verifies a user’s identity and eliminates any assumption of ‘who’ is behind a device to prevent cybercriminals from compromising account openings or taking over accounts. Combining secure digital onboarding, FIDO2 passwordless login, and biometric authentication and account recovery, with a fast, accurate, user-friendly experience, authID delivers biometric identity processing in 700ms. Binding a biometric root of trust for each user to their account, authID stops fraud at onboarding, detects and stops deepfakes, eliminates password risks and costs, and provides the fastest, frictionless, and the more accurate user identity experience demanded by today’s digital ecosystem. Discover how authID can help your organization secure your workforce or consumer applications against identity fraud, cyberattacks and account takeover at www.authID.ai.

Investor Relations Contact

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

The MIL Network –

January 25, 2025

Category: GlobeNewswire