GlobeNewswire – Page 662

MIL-OSI: WENDEL: Q3 2024 Trading Update

Source: GlobeNewswire (MIL-OSI)

PRESS RELEASE – OCTOBER 24, 2024

Fully diluted¹Net Asset Value of €184.5

up +13.7 %²year-to-date (+5.3% since June 30)

With the announced acquisition of Monroe Capital, Wendel dramatically expands its Asset Management platform and rebalances its business model towards more recurring cash flows and growth

Fully diluted Net Asset Value³as of September 30, 2024: €184.5 per share

Fully diluted NAV per share up +16.1%⁴ since the start of the year when restating for the €4 dividend paid in May 2024 reflecting:
- Strong increase in Bureau Veritas’ share price (+34% YTD)
- Slight decrease in value of non-listed assets
- Positive contribution of Asset Management activities (IK Partners), reflecting the increase in market multiples

Very active implementation of new strategic directions and active portfolio rotation

Principal Investment:
- €2.3 billion proceeds and value crystallization through the sale of 9% of Bureau Veritas’ share capital and the disposal of Constantia Flexibles
- €0.7 billion invested including €625 million in Globeducate, closed on October 16
Asset Management:
- €0.4 billion invested for the acquisition of 51% of IK Partners
- $1.13 billion will be invested in equity to acquire 75% of Monroe Capital, as announced on October 22, 2024 (closing expected in the first half of 2025)

Wendel Asset Management business is now a significant performance driver

Considering the announced acquisition of Monroe Capital, Wendel’s Asset Management platform will represent c.€31bn of AuM in private assets⁵
In 2025, Wendel AM business is expected to generate c.€160m⁶ of Fee Related Earnings (“FRE”) and c.€185m of total pre-tax profit in 2025
IK Partners Fee Paying AuM up +19% over the first 9 months of 2024

Consolidated 9M 2024 sales of €5,918.1 million, up +14.6% overall and +8.9% organically

Very strong organic growth at Bureau Veritas (+10.4% over 9 months)
Solid growth at CPI (+7.9%)
ACAMS (+8%) in total over 9 months, due to the earlier timing of a flagship conference than in 2023
Encouraging first 9 months for Stahl (+1.6% total growth), with Q3 (-4.7%) impacted by a mixed environment in its industry
Scalian: slight decrease of -0.2% over 9 months

Strong financial structure and committed to remain Investment Grade

Debt maturity of 3.9 years with an average cost of 2.4%
LTV ratio at -6.8% as of September 30, 2024, and 18.9%⁷ on a pro forma basis
Pro forma total liquidity of €1.4⁸ billion as of September 30, 2024, including €0.5 billion in cash and €875 million in committed credit facility (fully undrawn)

Laurent Mignon, Wendel Group CEO, commented:

“The first nine months of 2024 have been generating good value creation for shareholders, with fully diluted Net Asset Value growing by 13.7%, driven notably by Bureau Veritas’ strong stock price and operating performances.

We continue to enhance our cash flow generation and value creation profile, by executing our strategic plan with determination, rigor and financial discipline, as demonstrated by the Monroe Capital acquisition, announced two days ago, while also focusing on premium assets in our principal investment activities, highlighted by the recent acquisition of Globeducate.

Our transformation to a dual-strategy model is now well-grounded, with top partners in asset management such as IK Partners in private equity and now Monroe Capital in private credit.

Following the investment in Globeducate and the announced acquisition of Monroe Capital, the priorities of Wendel’s teams are to create value on existing assets, to successfully build the private asset management platform around IK Partners and Monroe Capital, and to maintain a solid financial structure.”

Wendel’s net asset value as of September 30, 2024: €184.5 per share on a fully diluted basis

Wendel’s Net Asset Value (NAV) as of September 30, 2024, was prepared by Wendel to the best of its knowledge and on the basis of market data available at this date and in compliance with its methodology.

Fully diluted Net Asset Value was €184.5 per share as of September 30, 2024 (see detail in the table below), as compared to €162.3 on December 31, 2023, representing an increase of +13.7% since the start of the year and +16.1% restated for the dividend paid in 2024. Compared to the last 20-day average share price as of September 30, the discount to the September 30, 2024, fully diluted NAV per share was -50.6%.

Bureau Veritas contributed very positively to the increase in Net Asset Value: on September 30, its 20-day average share price was up strongly (+34.3%) compared to December 31, 2023. Impacts from share price movements from IHS Towers (-30.0%) and Tarkett (-2.8%) were negligible given the weight of Bureau Veritas in the NAV. Total value creation per share of listed assets was therefore +€26.1 over the first nine months of 2024 on a fully diluted basis.

Unlisted assets’ contribution to the growth of the NAV was slightly negative over the first nine months of the year with a total change per share of -€1.2, reflecting a positive evolution of the market multiples and from bolt-on acquisitions, more than entirely offset by negative FX effect and selective downward revisions of outlooks for the current year (compared to December 31, 2023).

Asset management activities were consolidated and accounted in the NAV for the first time at the end of June following the acquisition of IK Partners. There is no sponsor money included in the NAV yet, as no capital has been called. IK Partners’ valuation is up by €1.5 per share over the third quarter, driven by positive market multiples evolution.

Cash operating costs and net financing results impacted NAV by -€1.2 over 9 months, as Wendel benefited from a positive carry. The impact of year-to-date share buybacks on fully diluted NAV per share is +€1.4 per share more as of September 30, 2024, than as of December 31, 2023. Other assets and liabilities impacted NAV by -€0.5.

Total Net Asset Value increase amounted to €26.2 per share over the first nine months of the year before dividend payment.

Fully diluted NAV per share of €184.5 as of September 30, 2024

(in millions of euros)			09/30/2024		12/31/2023
Listed investments	Number of shares	Share price ⁽¹⁾	3,800	3,867
Bureau Veritas	120.3m/160.8m	€29.9/€22.2	3,591	3,575
IHS	63.0m/63.0m	$3.1/$4.4	174	251
Tarkett		€8.9/€9.1	35	40
Investment in unlisted assets ⁽²⁾			3,158	4,360
Asset Management Activities ⁽³⁾			449	–
Other assets and liabilities of Wendel and holding companies ⁽⁴⁾			95	6
Net cash position & financial assets ⁽⁵⁾			3,027	1,286
Gross asset value			10,530	9,518
Wendel bond debt			-2,386	-2,401
IK Partners transaction deferred payment			-131	–
Net Asset Value			8,012	7,118
Of which net debt			509	-1,115
Number of shares			44,430,864	44,430,554
Net Asset Value per share			€180.3	€160.2
Wendel’s 20 days share price average			€91.1	€79.9
Premium (discount) on NAV			-49.5%	-50.1%
Number of shares – fully diluted			42,469,744	43,302,016
Fully diluted Net Asset Value, per share			€184.5	€162.3
Premium (discount) on fully diluted NAV			-50.6%	-50.8%

(1) Last 20 trading days average as of September 30, 2024, and December 31, 2023.

(2) Investments in unlisted companies (Stahl, Crisis Prevention Institute, ACAMS, Scalian, Wendel Growth as of September 30, 2024, also included Constantia Flexibles as of December 31, 2023). Aggregates retained for the calculation exclude the impact of IFRS16.

(3) IK Partners’ activity, no sponsor money has been called at this stage. It is therefore not included in the NAV at this stage.

(4) Of which 1,961,120 treasury shares as of September 30, 2024, and 1,128,538 treasury shares as of December 31, 2023.

(5) Cash position and financial assets of Wendel and holdings.

Assets and liabilities denominated in currencies other than the euro have been converted at exchange rates prevailing on the date of the NAV calculation.

If co-investment and management LTIP conditions are realized, subsequent dilutive effects on Wendel’s economic ownership are accounted for in NAV calculations. See page 246 of the 2023 Universal Registration Document.

Wendel’s Principal Investments’ portfolio rotation

Since the beginning of the year, Wendel has realized a total of €2.3 billion in disposals for its own account and has invested €0.7 billion, reflecting the acceleration of the diversification of its investment portfolio, in line with the strategy announced a few months ago:

Wendel announced on January 4, 2024, that it had completed the sale of Constantia Flexibles, generating total net proceeds⁹ for Wendel of €1,121 million for its shares, i.e. a valuation over 10% higher than the latest NAV on record before the announcement of the transaction (as at March 31, 2023).
Wendel announced on April 5, 2024, that it had successfully completed the sale of 40.5 million shares in Bureau Veritas, representing c.9% of the Company’s share capital, for total proceeds of approximately €1.1 billion. The transaction was carried out at a price of €27.127, or a discount of 3% from the previous day’s share price.
Wendel Growth realized its investment in Preligens, a leader in artificial intelligence (AI) for aerospace and defence, generating net proceeds to Wendel of c.€14.6M, translating into a gross IRR of 28%¹⁰. In addition, Wendel Growth announced on June 11, 2024, the acquisition of a minority stake in YesWeHack through an equity investment of €14.5 million.
Wendel reinvested €43.7m in Scalian upon the acquisition of MANNARINO Systems & Software on June 21, 2024. This Canadian company is a leading engineering services specialist for advanced technology R&D for the aviation sector, primarily in North America, with recognized expertise in safety-critical embedded software and systems.
On October 16, 2024, Wendel completed the acquisition of c.50% of Globeducate, one of the world’s leading international K-12 education groups, from Providence Equity Partners. Wendel invested €625 million of equity, at an Enterprise Value of c.€2 billion¹¹, to join Providence, and both firms will now own c.50% of the group.

Wendel’s Asset Management platform evolution

Acquisition of Monroe Capital dramatically expands Wendel’s Asset Management platform and rebalances its business model towards more recurring cash flows and growth

Wendel announced on October 22 that it had entered into a definitive partnership agreement including the acquisition of 75% of Monroe Capital LLC (“Monroe Capital” or “the Company”), and a sponsoring program of $800 million to accelerate Monroe Capital’s growth, and will invest in GP commitment for up to $200 million.

For Wendel, the acquisition of a controlling stake in Monroe Capital, a private credit market leader focused on the U.S. lower middle market that has established an outstanding track record, would represent a significant and transformational advancement of the strategy it announced in March 2023 to develop its third-party asset management platform to complement its longstanding Principal Investment business.

With IK Partners and Monroe Capital, Wendel’s third party asset management platform will reach c.€31 billion in AUM¹², c.€ 455 million revenues, c.€160 million pre-tax FRE (c.€101 million in pre-tax FRE (Wendel share) by 2025 and is expected to reach €150 million (Wendel share) in pre-tax FRE by 2027 through double-digit organic growth.

For more information, see the October 22, 2024, announcement on http://www.wendelgroup.com.

Third Party Asset Management value creation and performance

9 months 2024 performance

Over the first nine months of 2024, IK Partners had particularly strong activity, generating a total of €126.4 million in revenue. Total Assets under Management (€13.3 billion, of which €3.3 billion of Dry Powder¹³) grew by 20% since the beginning of the year, and FPAuM¹⁴ (€9.0 billion) by 19%. Over the period, €1.7 billion of new funds were raised (IK X, PFIII and IK SO) and 7 exits have been announced, for over €1.2 billion.

Sponsor money invested by Wendel

Wendel committed €400 million in IK Partners funds, of which €300 million in IK X. These commitments have not yet been called.

Principal Investment companies’ value creation and performance

Listed Assets: 36% of Gross Asset Value

Bureau Veritas – Strong Q3 2024 organic revenue growth; refocused portfolio with ongoing acquisitions acceleration, in line with the LEAP | 28 strategy; 2024 revenue outlook upgraded

(Full consolidation)

Revenue in the first nine months of 2024 totaled € 4,569.6 million, a 5.6% increase year-to-date.

Revenue in the third quarter of 2024 amounted to € 1,547.9 million, an 8.8% increase compared to Q3 2023. Organic growth achieved a strong 13.0%, which led to 10.5% on a 9-month basis. The scope effect was a positive 0.5%, reflecting bolt-on acquisitions (contributing to +1.1%) realized in the past few quarters and partly offset by the impact of small divestments completed over the last twelve months (contributing to -0.6%). Currency fluctuations had a negative impact of 4.7%, due to the strength of the euro against most currencies.

Three businesses delivered very strong organic growth: Marine & Offshore, up 13.2%, Industry, up 23.8%, and Certification, up 17.7%. Buildings & Infrastructure further recovered, up 9.3% organically in the third quarter (after 4.3% in the first half) while both Consumer Products Services and Agri Food & Commodities grew high-single digits organically, both reflecting improving market trends.

Based on the 9-month performance, leveraging a healthy and growing sales pipeline and strong underlying market growth, Bureau Veritas now expects to deliver for the full year 2024:

9 to 10% organic revenue growth (from “high single-digit” previously);
Improvement in adjusted operating margin at constant exchange rates;
Strong cash flow, with a cash conversion above 90%.

For more information: https://group.bureauveritas.com

Tarkett – Slight organic decrease year-to-date, with Q3 2024 solid organic sales growth of +2.4%, as Sports division grew at a sustained pace in the most important quarter of the year. Activity remained sluggish in flooring, particularly in EMEA and the CIS countries

(Equity method)

Revenue in the first nine months of 2024 amounted to €2,560.7 million, down by -1.2% compared to the same period of 2023, reflecting an organic decline of -0.4%. Sales prices remained stable over the financial year, i.e. -0.3% compared to the first nine months of 2023. In Q3 2024, Group net sales came to €1,002 million, up +1.8% compared to the third quarter of 2023. Organic growth reached +2.4%. Sales prices remained broadly stable over the year, with a slight decline of -0.5% compared to the third quarter of 2023.

For more information: https://www.tarkett-group.com/en/investors/

IHS Towers (not consolidated) – IHS Towers will report its Q3 2024 results in the coming weeks

Unlisted Assets: 30% of Gross Asset Value

	Sales (in millions)
	9 months 2023	9 months 2024
Stahl	€677.3	€687.9
CPI	$103.6	$112.0
ACAMS	$67.9	$76.8
Scalian	€402.2	€401.3

Stahl – Total sales up 1.6% for the first 9 months of 2024 on the back of Q3 market challenges in the leather market for automotive and luxury goods

(full consolidation) 

Stahl, the world leader in specialty coatings for flexible materials, posted total sales of €687.9 million in the first 9 months of 2024, representing a total increase of +1.6% over the period. Organically, sales were slightly down -0.4%, in a context of tougher markets in automotive and luxury goods, while FX contributed -1.3%. The acquisition of ICP Industrial Solutions Group (ISG) in March 2023 contributed positively (+3.3%) to total sales variation.

Stahl Q3 sales were down -4.7% (-3.1% organically and -1.6% due to FX) linked to the weaker market performance of the automotive and luxury goods sectors, notably in August, which was a particularly quiet month this year as many Italian tanneries were inactive for a four-week period due to reduced activity.

On September 27, Stahl completed the acquisition of WEILBURGER Coatings, a leading German-based manufacturer of water-based and energy cured coatings for the graphic arts and packaging industry. The transaction significantly strengthens Stahl’s packaging coatings division and supports its strategy to broaden its franchise for specialty coatings for flexible materials. This acquisition strengthens Stahl’s strategic position in Europe, positioning the company as the second-largest packaging coatings player in the region. WEILBURGER Coatings posted sales of €70 million in 2023 and has over 140 employees, primarily based in Germany.

Stahl also announced it maintained its Platinum EcoVadis rating for the third consecutive year, reaffirming its commitment to sustainability. In August, Stahl was awarded the Living Wage certification strengthening its commitment to fair compensation and employee well-being.

Crisis Prevention Institute reports +8.2% revenue as compared with 9M 2023

(full consolidation)

CPI recorded first nine months 2024 revenues of $112 million, up +8.2% compared to 9M 2023, or +8.1% organically (FX impact was +0.1%), resulting from the addition of new certified instructors across end markets and geographies, and strong consumption of training materials, signifying active training of broader staff throughout the Company’s primary customers in educational, healthcare and human services settings. The company’s year-to-date results include relatively flat year-over-year revenue for the third quarter, however, reflecting what management describes as a temporary, seasonal slowdown in new certified instructors and a difficult year-over-year comparison resulting from an unusually large enterprise program added in the third quarter of 2023.

2024 continues to be a pivotal year for CPI in growing its impact and reach, including further global expansion with the opening of its first office in the United Arab Emirates, and new program launches, including Reframing Behavior, a new certification program designed to help educators build a more positive, supportive learning environment and prevent disruptive classroom behavior. In addition, regulatory and legislative actions continue to provide support for workplace violence prevention programs and related training, including expanded requirements in New York, Texas and California during 2024.

ACAMS – ACAMS reports positive total growth amid accelerated transformation

(full consolidation)

ACAMS, the global leader in training and certifications for anti-money laundering and financial crime prevention professionals, reported year-to-date bookings of $78 million, roughly flat with reported bookings for the same period in 2023, and revenue of $77 million for the first nine months of 2024, representing 8% year-over-year growth. The results for the first nine months of 2024 reflect continued growth and market expansion in North America and Europe, largely offset by declines with customers in the Asia-Pacific region. As well, the year-to-date results include the impact of ACAMS’ flagship Las Vegas conference that was held in the third quarter of 2024 and fourth quarter of 2023. Excluding the impact of this timing difference would reduce year-over-year bookings and revenue growth for the nine months ending September 30, 2024, to -0.8% and +0.3%, respectively.

The Company has made considerable progress in its transformation this year. Having largely completed its separation and transition to a stand-alone, independent company in 2023, ACAMS has made many investments instrumental to the Company’s future growth, including organizational changes led by the CEO, Neil Sternthal, who joined ACAMS in early 2024 and subsequently added several executives, including a new Chief Financial Officer and a Chief Revenue Officer, investments in the Company’s technology platform, business analytics and sales organizations, and new product development, most notably with the planned introduction of its Certified Anti-Fraud Specialist (CAFS) certification.

Scalian – Slight decrease of total sales of -0.2% year-to-date, in a context of overall market slowdown

(full consolidation since July 2023.) 

Scalian, a European leader in digital transformation, project management and operational performance consulting, reported total revenues of €401.3 million over the first 9 months in a context of continued industry slowdown, in particular supply chain tensions in the aeronautic sector as well as the turndown of the European automotive sector. Sales are down by -2.5% organically and benefited from a positive scope effect of +2.3%.

Scalian announced the acquisition of Dulin Technology in January 2024, a Spanish-based consulting firm specializing in cybersecurity for the financial sector, and MANNARINO Systems & Software in June 2024, a Canadian-based company that is a leading engineering services specialist with a unique know-how in advanced technology R&D for the aviation sector.

Agenda

Friday, December 6, 2024,

2024 Investor Day.

Wednesday, February 26, 2025

Full-Year 2024 Results – Publication of NAV as of December 31, 2024, and Full-Year consolidated financial statements (post-market release)

Thursday, April 24, 2025

Q1 2025 Trading update – Publication of NAV as of March 31, 2025 (post-market release)

Thursday, May 15, 2025

Annual General Meeting

Wednesday, July 30, 2025

H1 2025 results – Publication of NAV as of June 30, 2025, and condensed Half-Year consolidated financial statements (post-market release)

Appendix 1: Nine-month 2024 sales of Group companies

Nine-month 2024 consolidated sales

(in millions of euros)	9-month 2023	9-month 2024	Δ	Organic Δ
Bureau Veritas	4,328.0	4,569.6	+5.6%	+10.4%
Stahl ⁽¹⁾	677.3	687.9	+1.6%	-0.4%
Scalian ⁽²⁾	n.a.	409.3	n.a.	n.a.
Crisis Prevention Institute	95.6	103.1	+7.9%	+8.1%
ACAMS ⁽³⁾	62.7	70.6	+12.6%	+8.6%
IK Partners⁽⁴⁾	n.a.	77.6	n.a.	n.a.
Consolidated net sales ⁽³⁾⁽⁴⁾	5,163.5	5,918.1	+14.6%	+8.9%

(1)   Acquisition of ICP Industrial Solutions Group (ISG) since March 2023 (sales’ contribution of €70.8M vs €62.7M as of 9M 2023)
(2)   Scalian has a different reporting date to Wendel. Consequently, sale’s contribution corresponds to 9 months’ sales between October 1st 2023 and June 30 2024.
(3)   The sales include a PPA restatement for an impact of -€0.5M (vs -€3.2M as of 9M 2023). Excluding this restatement, the sales amount to €71.3M vs. €66.1M as of 9M 2023. The total growth of +12.6% include a PPA effect of +4.5% and the conference revenue which generated $5,9M while this event occurred in Q4 2023 last year.
(4)   Contribution of five months of sales

Nine-month 2024 sales of equity accounted companies

(in millions of euros)	9-month 2023	9-month 2024	Δ	Organic Δ
Tarkett⁽⁵⁾	2,592.6	2,560.7	-1.2%	-0.4%

(5) Sales price adjustments in CIS countries are historically intended to compensate for currency movements and are therefore excluded from the “organic growth” indicator.

Q3 2024 sales of Group companies

Q3 2024 consolidated sales

(in millions of euros)	Q3 2023	Q3 2024	Δ	Organic Δ
Bureau Veritas	1,423.8	1,547.9	+8.8%	+13.0%
Stahl	234.3	223.3	-4.7%	-3.1%
Scalian ⁽¹⁾	n.a.	131.1	n.a.	n.a.
Crisis Prevention Institute	42.0	41.2	-1.8%	-1.0%
ACAMS ⁽²⁾	20.2	26.1	+29.1%	+28.6%
IK Partners	n.a.	44.2	n.a.	n.a.
Consolidated net sales	1,720.2	2,013.8	+17.1%	+10.6%

(1) Scalian has a different reporting date to Wendel. Consequently, sale’s contribution corresponds to 3 months’ sales between April 1st 2024 and June 30 2024.
(2) ACAMS Q3 2024 sales includes the conference which generated $5,9M, while this event occurred in Q4 2023 last year.

Q3 2024 sales of equity accounted companies

(in millions of euros)	Q3 2023	Q3 2024	Δ	Organic Δ
Tarkett⁽³⁾	984.3	1,002.0	+1.8%	+2.4%

(3) Sales price adjustments in CIS countries are historically intended to offset exchange rate movements, and are therefore excluded from the “organic growth” indicator.

¹ Fully-diluted NAV per share assumes all treasury shares are cancelled and a complementary liability is booked to account for all LTIP related securities in the money as of the valuation date.
² +13.7% compared with fully diluted NAV of €162.3 as of Dec. 31, 2023.
³ Fully diluted of share buybacks and treasury shares. Without adjusting for dilution, NAV stands at €8,012m and €180.3 per share.
⁴ Including the €4.0 per share dividend paid in 2024, and on a non-fully diluted basis NAV is up 15.0%.
⁵ As of September 2024.
⁶ c.€101m of FRE expected in 2025, Wendel share.

⁷ Proforma of Globeducate acquisition (€-625m), sponsor money commitment in IK (€-400m), IK Partners transaction deferred payment (€-131m), Monroe Capital 75% acquisition (including estimated earnout) and GP commitments in Monroe Capital ($-200m for 2025).

⁸ Proforma of Globeducate acquisition (€-625m), sponsor money commitment in IK (€-400m), IK Partners transaction deferred payment (€-131m), Monroe Capital 75% acquisition (including estimated earnout) and GP commitments in Monroe Capital ($-200m for 2025).

⁹ Net proceeds after ticking fees, financial debt, dilution to the benefit of the Company’s minority investors, transaction costs and other debt-like adjustments.
¹⁰ Gross IRR of 28%. Net IRR of 26%.
¹¹ EV including IFRS 16 impacts. Excluding IFRS 16, EV stands at c.€1.86 billion.
¹² As of September 2024

¹³ Commitments not yet invested

¹⁴ Fee Paying AuM

Attachment

Wendel_9M_2024_EN

The MIL Network –

January 25, 2025

MIL-OSI: Westamerica Bancorporation Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

SAN RAFAEL, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Westamerica Bancorporation (NASDAQ: WABC) today declared a quarterly cash dividend of $0.44 per share on common stock outstanding to shareholders of record at the close of business November 4, 2024. The dividend is payable November 15, 2024.

Chairman, President and CEO David Payne stated, “This quarterly dividend recognizes Westamerica’s reliable earnings stream, financial strength and conservative risk profile.”

On October 17, 2024, Westamerica reported $35.1 million in net income for the three months ended September 30, 2024, or $1.31 diluted earnings per common share.

Westamerica Bancorporation, through its wholly owned subsidiary, Westamerica Bank, operates banking and trust offices throughout Northern and Central California.

Westamerica Bancorporation Web Address: www.westamerica.com

For additional information contact:
Westamerica Bancorporation
1108 Fifth Avenue, San Rafael, CA 94901
Robert A. Thorson – SVP & Treasurer
707-863-6840
investments@westamerica.com

FORWARD-LOOKING INFORMATION:

The following appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company’s control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company’s most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2023 filed on Form 10-K and quarterly report for the quarter ended June 30, 2024 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company’s business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.

Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.

The MIL Network –

January 25, 2025

MIL-OSI: SBM Offshore divests minority interest in FPSO Sepetiba

Source: GlobeNewswire (MIL-OSI)

October 24, 2024

SBM Offshore announces it has completed the divestment of a 13.5% ownership interest in the special purpose companies related to the lease and operation of the FPSO Sepetiba to China Merchants Financial Leasing (Hong Kong) Holding Co., Limited (CMFL). This follows the announcement on February 10, 2022, of an agreement whereby CMFL would acquire its ownership interest after the FPSO Sepetiba had commenced operations. SBM Offshore is operator of the FPSO and will remain the majority shareholder with 51% ownership interest.

FPSO Sepetiba is installed at the Mero unitized field located in the Santos Basin, approximately 180 kilometers offshore Rio de Janeiro in Brazil. The Mero unitized field is operated by Petrobras (38.6%), in partnership with Shell Brasil (19.3%), TotalEnergies (19.3%), CNPC (9.65%), CNOOC (9.65%) and Pré-Sal Petróleo S.A. (PPSA) (3.5%), representing the government in the non-contracted area.

Corporate Profile

SBM Offshore designs, builds, installs and operates offshore floating facilities for the offshore energy industry. As a leading technology provider, we put our marine expertise at the service of a responsible energy transition by reducing emissions from fossil fuel production, while developing cleaner solutions for alternative energy sources.

More than 7,400 SBMers worldwide are committed to sharing their experience to deliver safe, sustainable and affordable energy from the oceans for generations to come.

For further information, please visit our website at www.sbmoffshore.com.

Financial Calendar	Date	Year
Third Quarter 2024 Trading Update	November 14	2024
Full Year 2024 Earnings	February 20	2025
Annual General Meeting	April 9	2025
First Quarter 2025 Trading Update	May 15	2025
Half Year 2025 Earnings	August 7	2025

For further information, please contact:

Investor Relations

Wouter Holties
Corporate Finance & Investor Relations Manager

Media Relations

Evelyn Tachau Brown
Group Communications & Change Director

Market Abuse Regulation

This press release may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Disclaimer

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those in such statements. These statements may be identified by words such as ‘expect’, ‘should’, ‘could’, ‘shall’ and similar expressions. Such forward-looking statements are subject to various risks and uncertainties. The principal risks which could affect the future operations of SBM Offshore N.V. are described in the ‘Impact, Risk and Opportunity Management’ section of the 2023 Annual Report.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results and performance of the Company’s business may vary materially and adversely from the forward-looking statements described in this release. SBM Offshore does not intend and does not assume any obligation to update any industry information or forward-looking statements set forth in this release to reflect new information, subsequent events or otherwise.

This release contains certain alternative performance measures (APMs) as defined by the ESMA guidelines which are not defined under IFRS. Further information on these APMs is included in the Half-Year Management Report accompanying the Half Year Earnings 2024 report, available on our website https://www.sbmoffshore.com/investors/financial-disclosures.

Nothing in this release shall be deemed an offer to sell, or a solicitation of an offer to buy, any securities. The companies in which SBM Offshore N.V. directly and indirectly owns investments are separate legal entities. In this release “SBM Offshore” and “SBM” are sometimes used for convenience where references are made to SBM Offshore N.V. and its subsidiaries in general. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

“SBM Offshore^®“, the SBM logomark, “Fast4Ward^®”, “emissionZERO^®” and “F4W^®” are proprietary marks owned by SBM Offshore.

Attachment

SBM Offshore divests minority interest in FPSO Sepetiba

The MIL Network –

January 25, 2025

MIL-OSI: Alliance Witan Increases Dividend after Combination

Source: GlobeNewswire (MIL-OSI)

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

Dividend Declaration

Alliance Witan Increases Dividend after Combination

The Company declares a third interim dividend of 6.73p per share. The total of the first three interim dividends declared for 2024 is 19.97p (2023: 18.86p), representing an increase of 5.9% on the same payments for 2023. The third interim dividend is a 1.7% step up on the level of the first and second interim dividends following the combination of Alliance Trust and Witan Investment Trust to form Alliance Witan.

The dividend will be paid on 27 December 2024 to shareholders on the register at the close of business on 29 November 2024. The ex-dividend date is 28 November 2024.

Barring any unforeseen circumstances, it is anticipated that the Company’s fourth interim dividend will be at least equal to third interim dividend. This will result in a total dividend for the 2024 financial year of at least 26.70p per share, which would represent a 6.0% increase over the Company’s financial year ended 31 December 2023.

Juniper Partners Limited
Company Secretary

24 October 2024

The MIL Network –

January 25, 2025

MIL-OSI: Cointelegraph Accelerator opens applications for its upcoming cohort, offering investment to innovative projects

Source: GlobeNewswire (MIL-OSI)

DUBAI, United Arab Emirates, Oct. 24, 2024 (GLOBE NEWSWIRE) — Cointelegraph Accelerator, a startup booster leveraging Cointelegraph’s capabilities as a media and strategic partner, has announced the launch of the application process for its upcoming cohort, inviting innovative Web3 startups to apply for the program. The application period runs from October 24, 2024, to January 31, 2025, with the cohort set to commence in the first quarter of 2025.

The program supports early-stage crypto and blockchain companies by providing them with the necessary resources to scale. Selected startups receive seed investments and benefit from Cointelegraph’s extensive media reach, marketing expertise, industry connections and mentorship from seasoned professionals, positioning them for accelerated growth and success in the competitive Web3 landscape.

An accelerator designed for impact

Cointelegraph Accelerator’s program structure is crafted to offer much more than just funding. Participants receive:

An investment of up to $100,000 to scale operations to enhance product development and expand market reach.
Mentorship and advisory from industry experts, providing guidance and insights from experienced leaders to help up-and-coming Web3 startups navigate challenges, refine business strategies and capitalize on emerging opportunities.
Integration into Cointelegraph’s network enables connections with a vast array of investors, strategic partners, KOLs and thought leaders in the crypto and blockchain sectors.
Access to Cointelegraph media products allows startups to utilize Cointelegraph’s global media platform to amplify visibility, engage with a broader audience and establish a strong market presence.
Marketing expertise from a team with over 10 years of Web3 experience, including a critical assessment of value proposition, enhancement of go-to-market strategies, and best practices for PR, social media and community management

Focus areas for the cohort

The accelerator program is seeking applications from projects that are innovating within key verticals poised to shape the future of the blockchain industry:

Payments

Projects focusing on innovative payment technologies that facilitate seamless, secure and cost-effective transactions using crypto and blockchain rails. These solutions aim to enhance global commerce by making financial exchanges more accessible and efficient for individuals and businesses.

Infrastructure

Projects developing infrastructure solutions that serve as the backbone of blockchain technology. This includes advancements in blockchain protocols, DePIN, scalability solutions, infrastructure layers supporting AI and interoperability frameworks that enable other projects to build and thrive upon these foundations.

Decentralized finance (DeFi)

Projects creating decentralized protocols and platforms that provide alternatives to conventional banking, lending and investment services. By leveraging blockchain technology, these solutions aim to democratize finance, reduce reliance on intermediaries and empower users with greater control over their assets.

Real-world assets (RWA)

Projects that bring tangible items — such as securities, real estate and commodities — onto the blockchain through real-world asset tokenization. This integration allows for fractional ownership, improved liquidity and broader investment opportunities, making markets more inclusive and efficient.

Consumer Applications

Projects that develop solutions in areas like digital identity management, loyalty and rewards programs, social media platforms and content delivery networks. These applications aim to simplify user experiences, enhance security and offer new value propositions to everyday users, thereby accelerating the integration of blockchain technology into daily life.

Program Structure and Duration

The Accelerator is a 12-week intensive program conducted entirely remotely, providing flexibility and accessibility to startups worldwide. Despite being remote, the program includes offline meetups and demo days, offering valuable face-to-face networking opportunities and the chance to present projects to potential investors and partners.

During and upon completion of the program, startups will benefit from a media campaign lasting up to a year, leveraging Cointelegraph’s global reach to maintain momentum, increase brand awareness, and engage continuously with the broader blockchain community.

Inside the Cointelegraph Accelerator

Emphasizing the program’s commitment to fostering innovation in the industry, Paul Solntsev, managing director of Cointelegraph Accelerator, highlighted:

“We are excited to launch the application stage for the new cohort and support pioneering projects that will shape the future of the crypto and blockchain industry. Our accelerator is committed to providing the capital, as well as the resources, network, and mentorship necessary for these projects to thrive.”

Cointelegraph’s CEO, Yana Prikhodchenko, highlighted the profound impact of the accelerator program, saying:

“At Cointelegraph, we’re redefining the role of media in the blockchain industry by actively participating in its growth. Through our accelerator program, we go beyond traditional media business and nurture groundbreaking projects. This initiative allows us to provide tangible value to the community of founders and investors to empower the next generation of blockchain pioneers.”

About Cointelegraph Accelerator
Cointelegraph Accelerator is working with early-stage Web3 projects to boost their growth by leveraging its access to a native Web3 audience, marketing expertise, and a broad network of partners in the industry. Accelerator participants also get mentorship support over key aspects of Web3 startup growth, e.g., token launch, liquidity management, token incentives design, etc. The equity/token-based program aligns the interests of the accelerator and the participants, allowing them to build meaningful partnerships for sustainable growth.

For more information on the program and how to apply, visit the Cointelegraph Accelerator Program.

Tags: Blockchain, DeFi, Web3, Startups, Business, Cointelegraph Accelerator, Announcement

Contact:
Paul Solntsev
Head of Cointelegraph Accelerator
ps@cointelegraph.com

Disclaimer: This content is provided by Cointelegraph. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0b96b721-dd22-4a92-8c98-8b19ab8ccb28

The MIL Network –

January 25, 2025

MIL-OSI: Vanguard Announces Cash Distributions for the Vanguard ETFs

Source: GlobeNewswire (MIL-OSI)

TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — Vanguard Investments Canada Inc. today announced the final October 2024 cash distributions for certain Vanguard ETFs, listed below, that trade on Toronto Stock Exchange (TSX). Unitholders of record on October 31, 2024 will receive cash distributions payable on November 07, 2024. Details of the “per unit” distribution amounts are as follows:

Vanguard ETF^®	TSX Ticker Symbol	Distribution per Unit ($)	CUSIP	ISIN	Payment Frequency
Vanguard Retirement Income ETF Portfolio	VRIF	0.081577	92211X109	CA92211X1096	Monthly
Vanguard FTSE Canadian Capped REIT Index ETF	VRE	0.078389	92203B107	CA92203B1076	Monthly
Vanguard FTSE Canadian High Dividend Yield Index ETF	VDY	0.157956	92203Q104	CA92203Q1046	Monthly

To learn more about the TSX-listed Vanguard ETFs, please visit www.vanguard.ca

About Vanguard

Canadians own CAD $103 billion in Vanguard assets, including Canadian and U.S.-domiciled ETFs and Canadian mutual funds. Vanguard Investments Canada Inc. manages CAD $70 billion in assets (as of April 30, 2024) with 37 Canadian ETFs and six mutual funds currently available. The Vanguard Group, Inc. is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages USD $9.3 trillion (CAD $12.8 trillion) in global assets, including over USD $2.7 trillion (CAD $3.7 trillion) in global ETF assets (as of March 30, 2024). Vanguard has offices in the United States, Canada, Mexico, Europe and Australia. The firm offers 423 funds, including ETFs, to its more than 50 million investors worldwide.

Vanguard operates under a unique operating structure. Unlike firms that are publicly held or owned by a small group of individuals, The Vanguard Group, Inc. is owned by Vanguard’s U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by Vanguard clients. This unique mutual structure aligns Vanguard interests with those of its investors and drives the culture, philosophy, and policies throughout the Vanguard organization worldwide. As a result, Canadian investors benefit from Vanguard’s stability and experience, low-cost investing, and client focus. For more information, please visit vanguard.ca.

For more information, please contact:
Matt Gierasimczuk
Vanguard Canada Public Relations
Phone: 416-263-7087
matthew_gierasimczuk@vanguard.com

Important information

Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Vanguard funds are managed by Vanguard Investments Canada Inc. and are available across Canada through registered dealers.

London Stock Exchange Group companies include FTSE International Limited (“FTSE”), Frank Russell Company (“Russell”), MTS Next Limited (“MTS”), and FTSE TMX Global Debt Capital Markets Inc. (“FTSE TMX”). All rights reserved. “FTSE®”, “Russell®”, “MTS®”, “FTSE TMX®” and “FTSE Russell” and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by The Vanguard Group, Inc. (Vanguard). Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Vanguard. Vanguard ETFs are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

The MIL Network –

January 25, 2025

MIL-OSI: Gevo to Report Third Quarter 2024 Financial Results on November 7, 2024

Source: GlobeNewswire (MIL-OSI)

ENGLEWOOD, Colo., Oct. 24, 2024 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it will host a conference call on November 7, 2024, at 4:30 p.m. ET (2:30 p.m. MT) to report its financial results for the third quarter ended September 30, 2024.

To participate in the live call, please register through the following event weblink: https://register.vevent.com/register/BId0c13b561f9d442ba7211ad0cbc56dbc

After registering, participants will be provided with a dial-in number and pin.

To listen to the conference call (audio only), please register through the following event weblink: https://edge.media-server.com/mmc/p/ggx3po5y

A webcast replay will be available two hours after the conference call ends on November 7, 2024. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

About Gevo

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

Learn more at Gevo’s website: www.gevo.com.

PUBLIC AFFAIRS CONTACT
Heather Manuel
VP of Stakeholder Engagement & Partnerships
PR@gevo.com

INVESTOR CONTACT
Eric Frey, PhD
VP of Finance and Strategy
IR@gevo.com

The MIL Network –

January 25, 2025

MIL-OSI: Origin Bancorp, Inc. Reports Earnings For Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $18.6 million, or $0.60 diluted earnings per share for the quarter ended September 30, 2024, compared to net income of $21.0 million, or $0.67 diluted earnings per share, for the quarter ended June 30, 2024. Pre-tax, pre-provision (“PTPP”)⁽¹⁾ earnings was $28.3 million for the quarter ended September 30, 2024, compared to $32.0 million for the linked quarter.

“I am pleased with the balance sheet trends we showed in the third quarter,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I am confident these trends will continue and our bankers will capitalize on opportunities throughout our markets.”

⁽¹⁾ PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

Financial Highlights

Total loans held for investment (“LHFI”) were $7.96 billion at both September 30, 2024, and June 30, 2024. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.46 billion at September 30, 2024, reflecting an increase of $8.9 million, or 0.12%, compared to June 30, 2024.
Noninterest-bearing deposits were $1.89 billion at September 30, 2024, reflecting an increase of $27.1 million, or 1.5%, compared to June 30, 2024.
Net interest income was $74.8 million for the quarter ended September 30, 2024, reflecting an increase of $914,000, or 1.2%, compared to the linked quarter.
Our book value per common share was $36.76 as of September 30, 2024, reflecting an increase of $1.53, or 4.3%, compared to June 30, 2024. Tangible book value per common share⁽¹⁾ was $31.37 at September 30, 2024, reflecting an increase of $1.60, or 5.4%, compared to June 30, 2024.
Stockholders’ equity was $1.15 billion at September 30, 2024, reflecting an increase of $49.8 million, or 4.5%, compared to June 30, 2024.
At September 30, 2024, and June 30, 2024, the ratio of Company-level common equity Tier 1 capital to risk-weighted assets was 12.46%, and 12.15%, respectively, the Tier 1 leverage ratio was 10.93% and 10.70%, respectively, and the total capital ratio was 15.45% and 15.16%, respectively. The ratio of tangible common equity to tangible assets⁽¹⁾ was 9.98% at September 30, 2024, compared to 9.47% at June 30, 2024.

⁽¹⁾ Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their most directly comparable GAAP measures.

Results of Operations for the Three Months Ended September 30, 2024

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2024, was $74.8 million, an increase of $914,000, or 1.2%, compared to the quarter ended June 30, 2024, $813,000 of which was driven by one additional day in the current quarter. Higher interest rates drove a net increase of $147,000 in net interest income, which was reflected in a $1.2 million increase in interest income earned on interest-earnings assets offset by a $1.1 million increase in interest expense paid on interest-bearing liabilities.

Higher interest rates on LHFI drove a $2.0 million increase in the yield for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, $1.5 million of which was driven by real estate-based loans. The average rate on LHFI increased to 6.67% for the quarter ended September 30, 2024, compared to 6.58% for the quarter ended June 30, 2024. Higher interest rates on savings and interest-bearing transaction accounts drove a $1.1 million increase in interest expense, compared to the quarter ended June 30, 2024. The average rate on interest-bearing deposits increased to 4.01% for the quarter ended September 30, 2024, compared to 3.95% for the quarter ended June 30, 2024.

The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. The federal funds target rate range was reduced by 50 basis points on September 18, 2024, to a range of 4.75% to 5.00%, the first rate reduction since early 2020.

The NIM-FTE was 3.18% for the quarter ended September 30, 2024, representing a one- and a four-basis-point increase compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2024, was 6.09%, an increase of five and 40 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended September 30, 2024, was 4.04%, representing a six- and 45-basis point increase compared to the linked quarter and the prior year same quarter, respectively.

As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, we reversed $1.2 million of accrued loan interest during the quarter ended June 30, 2024, due to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. This reversal of accrued loan interest income negatively impacted the fully tax equivalent net interest margin (“NIM-FTE”) by five basis points for the linked quarter. Had we not experienced the reversal of the $1.2 million of accrued interest income during the quarter ended June 30, 2024, our NIM-FTE would have been 3.22% for the linked quarter, and we would have experienced a four-basis point decrease in our current NIM-FTE compared to the linked quarter. There was no equivalent interest income reversal during the current quarter and these loans remain on non-accrual.

Credit Quality

The table below includes key credit quality information:

	At and For the Three Months Ended									Change			% Change
(Dollars in thousands, unaudited)	September 30, 2024			June 30, 2024			September 30, 2023			Linked Quarter			Linked Quarter
Past due LHFI	$	38,838		$	66,276		$	20,347		$	(27,438	)	(41.4)%
Allowance for loan credit losses (“ALCL”)		95,989			100,865			95,177			(4,876	)	(4.8	)
Classified loans		107,486			118,254			64,021			(10,768	)	(9.1	)
Total nonperforming LHFI		64,273			75,812			31,608			(11,539	)	(15.2	)
Provision for credit losses		4,603			5,231			3,515			(628	)	(12.0	)
Net charge-offs		9,520			2,946			2,686			6,574		223.2
Credit quality ratios⁽¹⁾:
ALCL to nonperforming LHFI		149.35	%		133.05	%		301.12	%		16.30	%	N/A
ALCL to total LHFI		1.21			1.27			1.26			(0.06	)	N/A
ALCL to total LHFI, adjusted⁽²⁾		1.28			1.34			1.30			(0.06	)	N/A
Classified loans to total LHFI		1.35			1.49			0.85			(0.14	)	N/A
Nonperforming LHFI to LHFI		0.81			0.95			0.42			(0.14	)	N/A
Net charge-offs to total average LHFI (annualized)		0.48			0.15			0.14			0.33		N/A

___________________________

⁽¹⁾	Please see the Loan Data schedule at the back of this document for additional information.
⁽²⁾	The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, our credit metrics were negatively impacted by certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. Our investigation of this activity remains ongoing and is not final; however, as a result of a forbearance agreement with one of our impacted customer relationships, our past due LHFI declined $26.4 million when compared to the quarter ended June 30, 2024. There was no material change in the level of our nonperforming or classified LHFI principal balances between the current quarter and the linked quarter as a result of the questioned activity. We continue to work with an outside forensic accounting firm to confirm the bank’s identification and reconciliation of the activity, targeting a conclusion of this analysis by the end of this year. At this time, we believe that any ultimate loss arising from the situation will not be material to our financial position.

Past due LHFI were $38.8 million for the quarter ended September 30, 2024, compared to $66.3 million at June 30, 2024. Of the $27.4 million decrease, $26.4 million were impacted by or related to the questioned activity. The remaining net decrease in past due LHFI was primarily due to charge-offs or payoffs in commercial and industrial past due loans during the quarter ended September 30, 2024.

Nonperforming LHFI decreased $11.5 million for the quarter reflecting a decrease in the percentage of nonperforming LHFI to LHFI to 0.81% compared to 0.95% for the linked quarter. The decrease in nonperforming loans was primarily driven by three commercial and industrial loan relationships totaling $14.6 million at June 30, 2024, $10.4 million of which were charged-off and $4.2 million were paid down during the current quarter.

Classified loans decreased $10.8 million to $107.5 million at September 30, 2024, reflecting 1.35% as a percentage of total LHFI, down 14 basis points from the linked quarter. The decrease in classified loans was primarily driven by the same three commercial and industrial loan relationships mentioned in the nonperforming loan paragraph directly above.

Noninterest Income

Noninterest income for the quarter ended September 30, 2024, was $16.0 million, a decrease of $6.5 million, or 28.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $5.2 million, $725,000 and $621,000 in the change in fair value of equity investments, mortgage banking revenue and other income, respectively.

The decrease in change in fair value of equity investments was due to a $5.2 million positive valuation adjustment on a non-marketable equity security recognized during the linked quarter with no comparable amount recognized during the current quarter.

The decrease in mortgage banking revenue was primarily due to an $833,000 combined decrease in the pipeline and interest rate lock commitment fair values during the current quarter compared to the linked quarter.

The decrease in other income was primarily due to an $818,000 gain on sale of bank property recognized in the linked quarter with no comparable amount recognized in the current quarter.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2024, was $62.5 million, a decrease of $1.9 million, or 2.9% from the linked quarter. The decrease was primarily driven by a decrease of $1.6 million and in other noninterest expense.

The decrease in other expenses resulted from recognizing contingent liabilities totaling approximately $1.2 million related to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market, as described previously, in the linked quarter with no comparable liability incurred in the current quarter. Also, contributing to the quarter over quarter decline was a $357,000 decrease in corporate membership fees.

Financial Condition

Loans

Total LHFI were $7.96 billion at both September 30, 2024, and June 30, 2024, and reflected an increase of $388.7 million, or 5.1%, compared to September 30, 2023.
Total LHFI, excluding MW LOC, were $7.46 billion at September 30, 2024, representing an increase of $8.9 million, or 0.1%, from June 30, 2024, and an increase of $179.8 million, or 2.5%, from September 30, 2023.
During the quarter ended September 30, 2024, compared to the linked quarter, we experienced declines in construction/land/land development loans and MW LOC of $25.8 million and $11.3 million, respectively, partially offset by growth in multi-family real estate loans of $36.1 million.

Securities

Total securities were $1.18 billion at both September 30, 2024, and June 30, 2024, and reflected a decrease of $129.8 million, or 9.9%, compared to September 30, 2023.
Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $94.2 million at September 30, 2024, an improvement of $32.9 million, or 25.9%, from the linked quarter.
The weighted average effective duration for the total securities portfolio was 4.21 years as of September 30, 2024, compared to 4.28 years as of June 30, 2024.

Deposits

Total deposits at September 30, 2024, were $8.49 billion, a decrease of $24.3 million, or 0.3%, compared to the linked quarter, and represented an increase of $112.1 million, or 1.3%, from September 30, 2023. The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of $205.2 million in brokered (which includes both brokered time and brokered interest-bearing demand) deposits. The decrease in brokered deposits was primarily replaced with customer deposits.
Excluding brokered deposits, total deposit increased $180.9 million, or 2.3%, to $8.05 billion, primarily due to increases of $87.0 million, $64.4 million and $27.1 million in money market deposits, interest-bearing demand deposits and noninterest-bearing demand deposits, respectively.
At September 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 22.3%, compared to 21.9% and 24.0% at June 30, 2024, and September 30, 2023, respectively. Excluding brokered deposits, noninterest-bearing deposits as a percentage of total deposits were 23.5%, compared to 23.7% and 26.1% at June 30, 2024, and September 30, 2023, respectively.

Borrowings

FHLB advances and other borrowings at September 30, 2024, were $30.4 million, a decrease of $10.3 million, or 25.3%, compared to the linked quarter and represented an increase of $18.2 million, or 149.3%, from September 30, 2023.

Stockholders’ Equity

Stockholders’ equity was $1.15 billion at September 30, 2024, an increase of $49.8 million, or 4.5%, compared to $1.10 billion at June 30, 2024, and an increase of $146.7 million, or 14.7%, compared to September 30, 2023.
The increase in stockholders’ equity from the linked quarter is primarily due to a decrease in accumulated other comprehensive loss of $32.9 million and net income of $18.6 million, partially offset by dividends declared of $4.8 million during the current quarter.

Conference Call

Origin will hold a conference call to discuss its third quarter 2024 results on Thursday, October 24, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 84865 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ324.

If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

About Origin

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 60 locations from Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

Non-GAAP Financial Measures

Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, adjusted NIM-FTE, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, and core efficiency ratio.

Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high-profile bank failures, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; changes in benchmark interest rates and the resulting impacts on net interest income; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of prolonged elevated interest rates on our financial projections, models and guidance); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; a potential U.S. federal government shutdown and the resulting impacts; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors (including Origin employees) which Origin may not be able to prevent, detect or mitigate, system failures, cybersecurity threats or security breaches and the cost of defending against them; Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

Contact:

Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

Origin Bancorp, Inc.
Selected Quarterly Financial Data
(Unaudited)

	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

Income statement and share amounts	(Dollars in thousands, except per share amounts)
Net interest income	$	74,804		$	73,890		$	73,323		$	72,989		$	74,130
Provision for credit losses		4,603			5,231			3,012			2,735			3,515
Noninterest income		15,989			22,465			17,255			8,196			18,119
Noninterest expense		62,521			64,388			58,707			60,906			58,663
Income before income tax expense		23,669			26,736			28,859			17,544			30,071
Income tax expense		5,068			5,747			6,227			4,119			5,758
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
PTPP earnings⁽¹⁾	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586
Basic earnings per common share		0.60			0.68			0.73			0.43			0.79
Diluted earnings per common share		0.60			0.67			0.73			0.43			0.79
Dividends declared per common share		0.15			0.15			0.15			0.15			0.15
Weighted average common shares outstanding – basic		31,130,293			31,042,527			30,981,333			30,898,941			30,856,649
Weighted average common shares outstanding – diluted		31,239,877			31,131,829			31,078,910			30,995,354			30,943,860

Balance sheet data
Total LHFI	$	7,956,790		$	7,959,171		$	7,900,027		$	7,660,944		$	7,568,063
Total LHFI excluding MW LOC		7,461,602			7,452,666			7,499,032			7,330,978			7,281,770
Total assets		9,965,986			9,947,182			9,892,379			9,722,584			9,733,303
Total deposits		8,486,568			8,510,842			8,505,464			8,251,125			8,374,488
Total stockholders’ equity		1,145,673			1,095,894			1,078,853			1,062,905			998,945

Performance metrics and capital ratios
Yield on LHFI		6.67	%		6.58	%		6.58	%		6.46	%		6.35	%
Yield on interest-earnings assets		6.09			6.04			5.99			5.86			5.69
Cost of interest-bearing deposits		4.01			3.95			3.85			3.71			3.47
Cost of total deposits		3.14			3.08			2.99			2.84			2.61
NIM – fully tax equivalent (“FTE”)		3.18			3.17			3.19			3.19			3.14
Return on average assets (annualized) (“ROAA”)		0.74			0.84			0.92			0.55			0.96
PTPP ROAA (annualized)⁽¹⁾		1.13			1.28			1.30			0.82			1.33
Return on average stockholders’ equity (annualized) (“ROAE”)		6.57			7.79			8.57			5.26			9.52
Book value per common share	$	36.76		$	35.23		$	34.79		$	34.30		$	32.32
Tangible book value per common share⁽¹⁾		31.37			29.77			29.24			28.68			26.78
Adjusted tangible book value per common share⁽¹⁾		34.39			33.86			33.27			32.59			32.37
Return on average tangible common equity (annualized) (“ROATCE”)⁽¹⁾		7.74	%		9.25	%		10.24	%		6.36	%		11.48	%
Efficiency ratio⁽²⁾		68.86			66.82			64.81			75.02			63.59
Core efficiency ratio⁽¹⁾		67.48			65.55			65.24			70.55			60.49
Common equity tier 1 to risk-weighted assets⁽³⁾		12.46			12.15			11.97			11.83			11.46
Tier 1 capital to risk-weighted assets⁽³⁾		12.64			12.33			12.15			12.01			11.64
Total capital to risk-weighted assets⁽³⁾		15.45			15.16			14.98			15.02			14.61
Tier 1 leverage ratio⁽³⁾		10.93			10.70			10.66			10.50			10.00

__________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
⁽³⁾	September 30, 2024, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.

Origin Bancorp, Inc.
Selected Year-To-Date Financial Data
(Unaudited)

	Nine Months Ended September 30,
(Dollars in thousands, except per share amounts)		2024			2023

Income statement and share amounts
Net interest income	$	222,017		$	226,568
Provision for credit losses		12,846			14,018
Noninterest income		55,709			50,139
Noninterest expense		185,616			174,310
Income before income tax expense		79,264			88,379
Income tax expense		17,042			18,004
Net income	$	62,222		$	70,375
PTPP earnings⁽¹⁾	$	92,110		$	102,397
Basic earnings per common share		2.00			2.29
Diluted earnings per common share		2.00			2.28
Dividends declared per common share		0.45			0.45
Weighted average common shares outstanding – basic		31,051,672			30,797,399
Weighted average common shares outstanding – diluted		31,160,867			30,903,222

Performance metrics
Yield on LHFI		6.61	%		6.19	%
Yield on interest-earning assets		6.04			5.50
Cost of interest-bearing deposits		3.94			3.03
Cost of total deposits		3.07			2.22
NIM-FTE		3.18			3.24
Adjusted NIM-FTE⁽²⁾		3.18			3.21
ROAA (annualized)		0.84			0.94
PTPP ROAA (annualized)⁽¹⁾		1.24			1.37
ROAE (annualized)		7.62			9.45
ROATCE (annualized)⁽¹⁾		9.04			11.47
Efficiency ratio⁽³⁾		66.83			62.99
Core efficiency ratio⁽¹⁾		66.09			59.94

____________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Adjusted NIM-FTE is a non-GAAP financial measure and is calculated for nine months ended September 30, 2024, by removing the $20,000 net purchase accounting amortization from net interest income. And, for the nine months ended September 30, 2023, by removing the $2.2 million net purchase accounting accretion from net interest income.
⁽³⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
(Unaudited)

	Three Months Ended
	September 30, 2024		June 30, 2024		March 31, 2024			December 31, 2023			September 30, 2023

Interest and dividend income	(Dollars in thousands, except per share amounts)
Interest and fees on loans	$	133,195	$	129,879	$	127,186		$	123,673		$	121,204
Investment securities-taxable		6,536		6,606		6,849			7,024			8,194
Investment securities-nontaxable		905		893		910			1,124			1,281
Interest and dividend income on assets held in other financial institutions		3,621		4,416		3,756			3,664			4,772
Total interest and dividend income		144,257		141,794		138,701			135,485			135,451
Interest expense
Interest-bearing deposits		67,051		65,469		62,842			59,771			55,599
FHLB advances and other borrowings		482		514		518			220			3,207
Subordinated indebtedness		1,920		1,921		2,018			2,505			2,515
Total interest expense		69,453		67,904		65,378			62,496			61,321
Net interest income		74,804		73,890		73,323			72,989			74,130
Provision for credit losses		4,603		5,231		3,012			2,735			3,515
Net interest income after provision for credit losses		70,201		68,659		70,311			70,254			70,615
Noninterest income
Insurance commission and fee income		6,928		6,665		7,725			5,446			6,443
Service charges and fees		4,664		4,862		4,688			4,889			4,621
Other fee income		2,114		2,404		2,247			2,118			2,006
Mortgage banking revenue (loss)		1,153		1,878		2,398			(719	)		892
Swap fee income		106		44		57			196			366
Gain (loss) on sales of securities, net		221		—		(403	)		(4,606	)		(7,173	)
Change in fair value of equity investments		—		5,188		—			—			10,096
Other income		803		1,424		543			872			868
Total noninterest income		15,989		22,465		17,255			8,196			18,119
Noninterest expense
Salaries and employee benefits		38,491		38,109		35,818			35,931			34,624
Occupancy and equipment, net		6,298		7,009		6,645			6,912			6,790
Data processing		3,470		3,468		3,145			3,062			2,775
Office and operations		2,984		3,072		2,502			2,947			2,868
Intangible asset amortization		1,905		2,137		2,137			2,259			2,264
Regulatory assessments		1,791		1,842		1,734			1,860			1,913
Advertising and marketing		1,449		1,328		1,444			1,690			1,371
Professional services		2,012		1,303		1,231			1,440			1,409
Loan-related expenses		751		1,077		905			1,094			1,220
Electronic banking		1,308		1,238		1,239			1,103			1,384
Franchise tax expense		721		815		477			942			520
Other expenses		1,341		2,990		1,430			1,666			1,525
Total noninterest expense		62,521		64,388		58,707			60,906			58,663
Income before income tax expense		23,669		26,736		28,859			17,544			30,071
Income tax expense		5,068		5,747		6,227			4,119			5,758
Net income	$	18,601	$	20,989	$	22,632		$	13,425		$	24,313
Basic earnings per common share	$	0.60	$	0.68	$	0.73		$	0.43		$	0.79
Diluted earnings per common share		0.60		0.67		0.73			0.43			0.79

Origin Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)

(Dollars in thousands)	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Assets
Cash and due from banks	$	159,337		$	137,615		$	98,147		$	127,278		$	141,705
Interest-bearing deposits in banks		161,854			150,435			193,365			153,163			163,573
Total cash and cash equivalents		321,191			288,050			291,512			280,441			305,278
Securities:
AFS		1,160,965			1,160,048			1,190,922			1,253,631			1,290,839
Held to maturity, net of allowance for credit losses		11,096			11,616			11,651			11,615			10,790
Securities carried at fair value through income		6,533			6,499			6,755			6,808			6,772
Total securities		1,178,594			1,178,163			1,209,328			1,272,054			1,308,401
Non-marketable equity securities held in other financial institutions		67,068			64,010			53,870			55,190			63,842
Loans held for sale		7,631			18,291			14,975			16,852			14,944
Loans		7,956,790			7,959,171			7,900,027			7,660,944			7,568,063
Less: ALCL		95,989			100,865			98,375			96,868			95,177
Loans, net of ALCL		7,860,801			7,858,306			7,801,652			7,564,076			7,472,886
Premises and equipment, net		126,751			121,562			120,931			118,978			111,700
Mortgage servicing rights		—			—			—			15,637			19,189
Cash surrender value of bank-owned life insurance		40,602			40,365			40,134			39,905			39,688
Goodwill		128,679			128,679			128,679			128,679			128,679
Other intangible assets, net		39,272			41,177			43,314			45,452			42,460
Accrued interest receivable and other assets		195,397			208,579			187,984			185,320			226,236
Total assets	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	1,893,767		$	1,866,622		$	1,887,066		$	1,919,638		$	2,008,671
Interest-bearing deposits excluding brokered interest-bearing deposits		5,137,940			4,984,817			4,990,632			4,918,597			4,728,263
Time deposits		1,023,252			1,022,589			1,030,656			967,901			968,352
Brokered deposits		431,609			636,814			597,110			444,989			669,202
Total deposits		8,486,568			8,510,842			8,505,464			8,251,125			8,374,488
FHLB advances and other borrowings		30,446			40,737			13,158			83,598			12,213
Subordinated indebtedness		159,861			159,779			160,684			194,279			196,825
Accrued expenses and other liabilities		143,438			139,930			134,220			130,677			150,832
Total liabilities		8,820,313			8,851,288			8,813,526			8,659,679			8,734,358
Stockholders’ equity:
Common stock		155,837			155,543			155,057			154,931			154,534
Additional paid-in capital		535,662			532,950			530,380			528,578			525,434
Retained earnings		548,419			534,585			518,325			500,419			491,706
Accumulated other comprehensive loss		(94,245	)		(127,184	)		(124,909	)		(121,023	)		(172,729	)
Total stockholders’ equity		1,145,673			1,095,894			1,078,853			1,062,905			998,945
Total liabilities and stockholders’ equity	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303

Origin Bancorp, Inc.
Loan Data
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

LHFI	(Dollars in thousands)
Owner occupied commercial real estate	$	991,671		$	959,850		$	948,624		$	953,822		$	932,109
Non-owner occupied commercial real estate		1,533,093			1,563,152			1,472,164			1,488,912			1,503,782
Construction/land/land development		991,545			1,017,389			1,168,597			1,070,225			1,076,756
Residential real estate – single family		1,414,013			1,421,027			1,373,532			1,373,696			1,338,382
Multi-family real estate		434,317			398,202			359,765			361,239			349,787
Total real estate loans		5,364,639			5,359,620			5,322,682			5,247,894			5,200,816
Commercial and industrial		2,074,037			2,070,947			2,154,151			2,059,460			2,058,073
MW LOC		495,188			506,505			400,995			329,966			286,293
Consumer		22,926			22,099			22,199			23,624			22,881
Total LHFI		7,956,790			7,959,171			7,900,027			7,660,944			7,568,063
Less: ALCL		95,989			100,865			98,375			96,868			95,177
LHFI, net	$	7,860,801		$	7,858,306		$	7,801,652		$	7,564,076		$	7,472,886

Nonperforming assets⁽¹⁾
Nonperforming LHFI
Commercial real estate	$	2,776		$	2,196		$	4,474		$	786		$	942
Construction/land/land development		26,291			26,336			383			305			235
Residential real estate⁽²⁾		14,313			13,493			14,918			13,037			13,236
Commercial and industrial		20,486			33,608			20,560			15,897			17,072
Consumer		407			179			104			90			123
Total nonperforming loans		64,273			75,812			40,439			30,115			31,608
Repossessed assets		6,043			6,827			3,935			3,929			3,939
Total nonperforming assets	$	70,316		$	82,639		$	44,374		$	34,044		$	35,547
Classified assets	$	113,529		$	125,081		$	88,152		$	84,474		$	67,960
Past due LHFI⁽³⁾		38,838			66,276			32,835			26,043			20,347

Allowance for loan credit losses
Balance at beginning of period	$	100,865		$	98,375		$	96,868		$	95,177		$	94,353
Provision for loan credit losses		4,644			5,436			4,089			3,582			3,510
Loans charged off		11,226			3,706			6,683			3,803			3,202
Loan recoveries		1,706			760			4,101			1,912			516
Net charge-offs		9,520			2,946			2,582			1,891			2,686
Balance at end of period	$	95,989		$	100,865		$	98,375		$	96,868		$	95,177

Credit quality ratios
Total nonperforming assets to total assets		0.71	%		0.83	%		0.45	%		0.35	%		0.37	%
Nonperforming LHFI to LHFI		0.81			0.95			0.51			0.39			0.42
Past due LHFI to LHFI		0.49			0.83			0.42			0.34			0.27
ALCL to nonperforming LHFI		149.35			133.05			243.27			321.66			301.12
ALCL to total LHFI		1.21			1.27			1.25			1.26			1.26
ALCL to total LHFI, adjusted⁽⁴⁾		1.28			1.34			1.30			1.31			1.30
Net charge-offs to total average LHFI (annualized)		0.48			0.15			0.13			0.10			0.14

____________________________

⁽¹⁾	Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale.
⁽²⁾	Includes multi-family real estate.
⁽³⁾	Past due LHFI are defined as loans 30 days or more past due.
⁽⁴⁾	The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

Origin Bancorp, Inc.
Average Balances and Yields/Rates
(Unaudited)

	Three Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023
	Average Balance		Yield/Rate		Average Balance		Yield/Rate		Average Balance		Yield/Rate

Assets	(Dollars in thousands)
Commercial real estate	$	2,507,566	5.93	%	$	2,497,490	5.91	%	$	2,428,969	5.73	%
Construction/land/land development		1,019,302	7.37			1,058,972	6.98			1,044,180	7.04
Residential real estate⁽¹⁾		1,824,725	5.56			1,787,829	5.48			1,663,291	5.06
Commercial and industrial (“C&I”)		2,071,984	7.96			2,128,486	7.87			2,024,675	7.62
MW LOC		484,680	7.64			430,885	7.57			376,275	7.21
Consumer		22,739	7.93			22,396	8.06			23,704	7.74
LHFI		7,930,996	6.67			7,926,058	6.58			7,561,094	6.35
Loans held for sale		14,645	6.28			14,702	6.84			11,829	5.81
Loans receivable		7,945,641	6.67			7,940,760	6.58			7,572,923	6.35
Investment securities-taxable		1,038,634	2.50			1,046,301	2.54			1,310,459	2.48
Investment securities-nontaxable		146,619	2.46			143,232	2.51			216,700	2.35
Non-marketable equity securities held in other financial institutions		66,409	2.85			56,270	6.53			58,421	6.47
Interest-bearing balances due from banks		229,224	5.46			254,627	5.53			279,383	5.42
Total interest-earning assets		9,426,527	6.09			9,441,190	6.04			9,437,886	5.69
Noninterest-earning assets		559,309				567,035				597,678
Total assets	$	9,985,836			$	10,008,225			$	10,035,564

Liabilities and Stockholders’ Equity
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	5,177,522	3.88	%	$	5,130,224	3.80	%	$	4,728,211	3.28	%
Time deposits		1,469,849	4.47			1,534,679	4.46			1,626,935	4.04
Total interest-bearing deposits		6,647,371	4.01			6,664,903	3.95			6,355,146	3.47
FHLB advances and other borrowings		40,331	4.75			41,666	4.96			230,815	5.51
Subordinated indebtedness		159,826	4.78			159,973	4.83			196,792	5.07
Total interest-bearing liabilities		6,847,528	4.04			6,866,542	3.98			6,782,753	3.59
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,850,046				1,894,141				2,088,183
Other liabilities		162,565				163,273				151,716
Total liabilities		8,860,139				8,923,956				9,022,652
Stockholders’ Equity		1,125,697				1,084,269				1,012,912
Total liabilities and stockholders’ equity	$	9,985,836			$	10,008,225			$	10,035,564
Net interest spread			2.05	%			2.06	%			2.10	%
NIM			3.16				3.15				3.12
NIM-FTE⁽²⁾			3.18				3.17				3.14

____________________________

⁽¹⁾	Includes multi-family real estate.
⁽²⁾	In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.

Origin Bancorp, Inc.
Notable Items
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023						September 30, 2023
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	—		$	—		$	(1,206	)	$	(0.03	)	$	—		$	—		$	—		$	—		$	—		$	—
Notable provision expense items:
Provision expense related to questioned banker activity		—			—			(3,212	)		(0.08	)		—			—			—			—			—			—
Provision expense on relationships impacted by questioned banker activity		—			—			(4,131	)		(0.10	)		—			—			—			—			—			—
Notable noninterest income items:
MSR gain (impairment)		—			—			—			—			410			0.01			(1,769	)		(0.05	)		—			—
Gain (loss) on sales of securities, net		221			0.01			—			—			(403	)		(0.01	)		(4,606	)		(0.12	)		(7,173	)		(0.18	)
Gain on sub-debt repurchase		—			—			81			—			—			—			—			—			—			—
Positive valuation adjustment on non-marketable equity securities		—			—			5,188			0.13			—			—			—			—			10,096			0.26
Gain on bank property sale		—			—			800			0.02			—			—			—			—			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(848	)		(0.02	)		(1,452	)		(0.04	)		—			—			—			—			—			—
Total notable items	$	(627	)		(0.02	)	$	(3,932	)		(0.10	)	$	7			—		$	(6,375	)		(0.16	)	$	2,923			0.07

____________________________

⁽¹⁾	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.

Origin Bancorp, Inc.
Notable Items – Continued
(Unaudited)

	Nine Months Ended September 30,
		2024						2023
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	(1,206	)	$	(0.03	)	$	—		$	—
Notable provision expense items:
Provision expense related to questioned banker activity		(3,212	)		(0.08	)		—			—
Provision expense on relationships impacted by questioned banker activity		(4,131	)		(0.10	)		—			—
Notable noninterest income items:
MSR gain		410			0.01			—			—
Loss on sales of securities, net		(182	)		—			(7,029	)		(0.18	)
Gain on sub-debt repurchase		81			—			471			0.01
Positive valuation adjustment on non-marketable equity securities		5,188			0.13			10,096			0.26
Gain on bank property sale		800			0.02			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(2,300	)		(0.06	)		—			—
Total notable items	$	(4,552	)		(0.12	)	$	3,538			0.09

____________________________

⁽¹⁾	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.

Origin Bancorp, Inc.
Non-GAAP Financial Measures
(Unaudited)

	At and For the Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
Provision for credit losses		4,603			5,231			3,012			2,735			3,515
Income tax expense		5,068			5,747			6,227			4,119			5,758
PTPP earnings (non-GAAP)	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586

Calculation of PTPP ROAA:
PTPP earnings	$	28,272		$	31,967		$	31,871		$	20,279		$	33,586
Divided by number of days in the quarter		92			91			91			92			92
Multiplied by the number of days in the year		366			366			366			365			365
PTPP earnings, annualized	$	112,473		$	128,571		$	128,184		$	80,455		$	133,249

Divided by total average assets	$	9,985,836		$	10,008,225		$	9,861,236		$	9,753,847		$	10,035,564
ROAA (annualized) (GAAP)		0.74	%		0.84	%		0.92	%		0.55	%		0.96	%
PTPP ROAA (annualized) (non-GAAP)		1.13			1.28			1.30			0.82			1.33

Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share:
Total assets	$	9,965,986		$	9,947,182		$	9,892,379		$	9,722,584		$	9,733,303
Goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Other intangible assets, net		(39,272	)		(41,177	)		(43,314	)		(45,452	)		(42,460	)
Tangible assets		9,798,035			9,777,326			9,720,386			9,548,453			9,562,164

Total common stockholders’ equity	$	1,145,673		$	1,095,894		$	1,078,853		$	1,062,905		$	998,945
Goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Other intangible assets, net		(39,272	)		(41,177	)		(43,314	)		(45,452	)		(42,460	)
Tangible common equity		977,722			926,038			906,860			888,774			827,806
Accumulated other comprehensive loss		94,245			127,184			124,909			121,023			172,729
Adjusted tangible common equity		1,071,967			1,053,222			1,031,769			1,009,797			1,000,535
Divided by common shares outstanding at the end of the period		31,167,410			31,108,667			31,011,304			30,986,109			30,906,716
Book value per common share (GAAP)	$	36.76		$	35.23		$	34.79		$	34.30		$	32.32
Tangible book value per common share (non-GAAP)		31.37			29.77			29.24			28.68			26.78
Adjusted tangible book value per common share (non-GAAP)		34.39			33.86			33.27			32.59			32.37
Tangible common equity to tangible assets (non-GAAP)		9.98	%		9.47	%		9.33	%		9.31	%		8.66	%

Calculation of ROATCE:
Net income	$	18,601		$	20,989		$	22,632		$	13,425		$	24,313
Divided by number of days in the quarter		92			91			91			92			92
Multiplied by number of days in the year		366			366			366			365			365
Annualized net income	$	74,000		$	84,417		$	91,025		$	53,262		$	96,459

Total average common stockholders’ equity	$	1,125,697		$	1,084,269		$	1,062,705		$	1,013,286		$	1,012,912
Average goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Average other intangible assets, net		(40,487	)		(42,563	)		(44,700	)		(46,825	)		(43,901	)
Average tangible common equity		956,531			913,027			889,326			837,782			840,332

ROATCE (non-GAAP)		7.74	%		9.25	%		10.24	%		6.36	%		11.48	%

Calculation of core efficiency ratio:
Total noninterest expense	$	62,521		$	64,388		$	58,707		$	60,906		$	58,663
Insurance and mortgage noninterest expense		(8,448	)		(8,402	)		(8,045	)		(8,581	)		(8,579	)
Adjusted total noninterest expense		54,073			55,986			50,662			52,325			50,084

Net interest income	$	74,804		$	73,890		$	73,323		$	72,989		$	74,130
Insurance and mortgage net interest income		(2,578	)		(2,407	)		(2,795	)		(2,294	)		(2,120	)
Total noninterest income		15,989			22,465			17,255			8,196			18,119
Insurance and mortgage noninterest income		(8,081	)		(8,543	)		(10,123	)		(4,727	)		(7,335	)
Adjusted total revenue		80,134			85,405			77,660			74,164			82,794

Efficiency ratio (GAAP)		68.86	%		66.82	%		64.81	%		75.02	%		63.59	%
Core efficiency ratio (non-GAAP)		67.48			65.55			65.24			70.55			60.49

Origin Bancorp, Inc.
Non-GAAP Financial Measures – Continued
(Unaudited)

	Nine Months Ended September 30,
		2024			2023

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	62,222		$	70,375
Provision for credit losses		12,846			14,018
Income tax expense		17,042			18,004
PTPP earnings (non-GAAP)	$	92,110		$	102,397

Calculation of PTPP ROAA:
PTPP Earnings	$	92,110		$	102,397
Divided by the year-to-date number of days		274			273
Multiplied by number of days in the year		366			365
Annualized PTPP Earnings	$	123,037		$	136,904

Divided by total average assets	$	9,951,890		$	10,004,097
ROAA (annualized) (GAAP)		0.84	%		0.94	%
PTPP ROAA (annualized) (non-GAAP)		1.24			1.37

Calculation of ROATCE:
Net income	$	62,222		$	70,375
Divided by the year-to-date number of days		274			273
Multiplied by number of days in the year		366			365
Annualized net income	$	83,114		$	94,091

Total average common stockholders’ equity	$	1,091,018		$	995,395
Average goodwill		(128,679	)		(128,679	)
Average other intangible assets, net		(42,576	)		(46,391	)
Average tangible common equity		919,763			820,325

ROATCE		9.04	%		11.47	%

Calculation of core efficiency ratio:
Total noninterest expense	$	185,616		$	174,310
Insurance and mortgage noninterest expense		(24,895	)		(25,768	)
Adjusted total noninterest expense		160,721			148,542

Net interest income	$	222,017		$	226,568
Insurance and mortgage net interest income		(7,780	)		(5,187	)
Total noninterest income		55,709			50,139
Insurance and mortgage noninterest income		(26,747	)		(23,714	)
Adjusted total revenue		243,199			247,806

Efficiency ratio		66.83	%		62.99	%
Core efficiency ratio		66.09			59.94

The MIL Network –

January 25, 2025

MIL-OSI: TowneBank Reports Third Quarter 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

SUFFOLK, Va., Oct. 23, 2024 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2024 of $42.95 million, or $0.57 per diluted share, compared to $44.86 million, or $0.60 per diluted share, for the quarter ended September 30, 2023. Excluding certain items affecting comparability, core earnings (non-GAAP) were $43.39 million, or $0.58 per diluted share, in the current quarter compared to $44.88 million, or $0.60 per diluted share, for the quarter ended September 30, 2023.

“Our third quarter results continued to deliver increased net interest income and noninterest income contributions from our diverse business model which were in line with expectations. We remain committed to prudent balance sheet management strategies. We were also excited to announce our partnership with Village Bank which will meaningfully enhance our Richmond presence, which is core to our franchise future growth. Lastly, the recently released FDIC Deposit Market Share Report for 2024 continues to demonstrate the strength of our Main Street banking model and core deposit franchise, resulting in the #1 market share, or 30%, in our legacy Virginia Beach-Norfolk-Newport News, VA-NC MSA,” said G. Robert Aston, Jr., Executive Chairman.

Highlights for Third Quarter 2024:

Total revenues were $174.52 million, an increase of $1.65 million, or 0.96%, compared to third quarter 2023. Noninterest income increased $2.43 million, driven by growth in residential mortgage banking income and insurance commissions. Partially offsetting the increase in noninterest income was a $0.78 million decline in net interest income.
Total deposits were $14.36 billion, an increase of $482.37 million, or 3.48%, compared to third quarter 2023. Total deposits increased 0.63%, or $90.58 million, in comparison to June 30, 2024, 2.52% on an annualized basis.
Noninterest-bearing deposits decreased 3.99%, to $4.27 billion, compared to third quarter 2023 and represented 29.71% of total deposits. Compared to the linked quarter, noninterest-bearing deposits decreased 0.84%.
Loans held for investment were $11.41 billion, an increase of $239.55 million, or 2.14%, compared to September 30, 2023, but a decrease of $39.23 million, or 0.34%, compared to June 30, 2024.
Annualized return on common shareholders’ equity was 8.18% compared to 9.04% in third quarter 2023. Annualized return on average tangible common shareholders’ equity (non-GAAP) was 11.54% compared to 13.11% in third quarter 2023.
Net interest margin was 2.90% for the quarter and tax-equivalent net interest margin (non-GAAP) was 2.93%, including purchase accounting accretion of 3 basis points, compared to the prior year quarter net interest margin of 2.95% and tax-equivalent net interest margin (non-GAAP) of 2.98%, including purchase accounting accretion of 5 basis points.
Compared to the linked quarter, net interest margin increased 4 bp and spread increased 6 bp.
The effective tax rate was 11.52% in the quarter compared to 17.34% in third quarter 2023 and 15.93% in the linked quarter. The lower effective tax rate in the current quarter was primarily due to the impact on state and federal taxes from the increase in credits and losses related to LIHTC investment properties placed in service during the period.

“Growth has certainly been challenging in the current environment but we believe our balance sheet is well positioned to support mid-single digit growth rates as we look ahead to next year. We plan to aggressively expand Towne Insurance and evaluate other opportunities to enhance our fee-based lines of business to further drive our differentiated business model,” stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $112.28 million compared to $113.06 million for the quarter ended September 30, 2023. The decrease was driven by increased deposit costs, which were mostly offset by higher yields on earning assets.
On an average basis, loans held for investment, with a yield of 5.46%, represented 74.16% of earning assets at September 30, 2024 compared to a yield of 5.13% and 73.45% of earning assets in the third quarter of 2023.
The cost of interest-bearing deposits was 3.28% for the quarter ended September 30, 2024, compared to 2.77% in second quarter 2023. Interest expense on deposits increased $17.96 million, or 27.98%, over the prior year quarter driven by the increase in rate and growth in interest-bearing deposits.
Our total cost of deposits increased to 2.29% from 1.84% for the quarter ended September 30, 2023 due to a combination of higher interest-bearing deposit balances coupled with higher rates. The Federal Reserve Open Market Committee lowered the overnight funds rate late in the third quarter. Management is expecting the decrease to have favorable impact on deposit costs in the fourth quarter of 2024.
Average interest-earning assets totaled $15.40 billion at September 30, 2024 compared to $15.21 billion at September 30, 2023, an increase of 1.26%. The Company anticipates approximately $604 million of cash flows from its securities portfolio to be available for reinvestment in the next twenty-four months.
Average interest-bearing liabilities totaled $10.25 billion, an increase of $493.95 million, or 5.06%, from prior year, driven by deposit growth. Borrowings have declined between periods. There were no short term FHLB borrowings in the third quarter of 2024, compared to an average of $248.91 million in the prior year quarter.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was a benefit of $1.10 million compared to an expense of $1.01 million in the prior year quarter and a benefit of $177 thousand in the linked quarter.
The allowance for credit losses on loans decreased $2.36 million in third quarter 2024, compared to the linked quarter. The decrease in the allowance was driven by a modest decline in the loan portfolio, primarily in higher-risk real estate construction and development loans, combined with continued strength in credit quality, and improvements in macroeconomic forecast scenarios utilized in our model.
Net loan charge-offs were $0.68 million in the quarter compared to net recoveries of $1.07 million in the prior year quarter and $19 thousand in the linked quarter. Year-to-date 2024, net loan charge-offs were $1.18 million compared to net loan charge-offs of $2.81 million in first nine months of 2023.
The ratio of net charge-offs to average loans on an annualized basis was 0.02% in third quarter 2024, compared to (0.04)% in third quarter 2023 and 0.00% in the linked quarter.
The allowance for credit losses on loans represented 1.08% of total loans at September 30, 2024, compared to 1.12% at September 30, 2023, and 1.10% at June 30, 2024. The allowance for credit losses on loans was 18.70 times nonperforming loans compared to 17.60 times at September 30, 2023 and 19.08 times at June 30, 2024.

Quarterly Noninterest Income:

Total noninterest income was $62.24 million compared to $59.81 million in 2023, an increase of $2.43 million, or 4.06%.
Residential mortgage banking income was $11.79 million compared to $10.65 million in third quarter 2023. Loan volume increased to $598.18 million in third quarter 2024 from $520.41 million in third quarter 2023. Both, the number of loans originated and the per-loan average balance increased in third quarter 2024 compared to third quarter 2023. Refinance activities increased in the quarter after more than a year of low activity. Residential purchase activity was 91.49% of production volume in the third quarter of 2024 compared to 95.96% in third quarter 2023. Management expects mortgage production volumes to be positively impacted by any additional reductions in the Federal Reserve overnight rate.
While level with the linked quarter at 3.28%, gross margins on residential mortgage sales increased 11 basis points from 3.17% in third quarter 2023.
Total net insurance commissions increased $1.95 million, or 8.20%, to $25.73 million in third quarter 2024 compared to 2023. This increase was primarily attributable to increases in property and casualty commissions, which were driven by organic growth.
Property management fee revenue decreased 12.34%, or $1.58 million, to $11.22 million in third quarter 2024 compared to 2023. Reservation levels declined compared to the prior year.

Quarterly Noninterest Expense:

Total noninterest expense was $126.90 million compared to $117.70 million in 2023, an increase of $9.20 million, or 7.81%. This increase was primarily attributable to growth in salaries and employee benefits of $4.87 million, professional fees of $1.95 million, software of $0.66 million, data processing of $0.56 million, and advertising and marketing of $0.51 million.
Salaries and benefits expense increases were driven by an increase in banking personnel and production incentives.
Investment in technology related to banking services and information monitoring continued to drive both direct and indirect costs. Professional fees increased due to consulting and outside services. Software costs increased due to higher core system costs, while data processing increased due to higher processing costs and merchant fee increases.
Advertising and marketing increased, driven by business development.

Consolidated Balance Sheet Highlights:

Management is focused on strategic balance sheet management with a concentration on controlled loan growth and maintaining strong levels of liquidity.
Total assets were $17.19 billion for the quarter ended September 30, 2024, a $119.18 million increase compared to $17.07 billion at June 30, 2024. Total assets increased $507.66 million, or 3.04%, from $16.68 billion at September 30, 2023.
Loans held for investment declined $39.23 million, or 0.34%, compared to the linked quarter but increased $239.55 million, or 2.14%, compared to prior year. There were declines in several loan categories from the linked quarter, with the most significant decline in the real estate construction and development category. The Company continued to maintain strong credit discipline throughout the period.
Mortgage loans held for sale increased $76.27 million, or 40.56%, compared to prior year and $63.56 million, or 31.66%, compared to the linked quarter, driven by the increase in production.
Total deposits increased $482.37 million, or 3.48%, primarily in interest-bearing demand and time deposits, compared to prior year. In the linked quarter comparison, total deposits increased $90.58 million, or 2.52% on an annualized basis.
Noninterest-bearing deposits decreased $177.23 million, or 3.99%, compared to prior year and $36.15 million, or 0.84%, compared to the linked quarter, primarily in commercial and escrow accounts.
Total borrowings decreased $116.22 million, or 28.55%, compared to third quarter 2023 and $4.35 million, or 1.47%, compared to the linked quarter. Short-term FHLB advances were zero at each of September 30, 2024, and the linked quarter end, compared to $100 million at September 30, 2023.

Investment Securities:

Total investment securities were $2.60 billion compared to $2.49 billion at June 30, 2024 and $2.54 billion at September 30, 2023. The weighted average duration of the portfolio at September 30, 2024 was 3.1 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $110.62 million at September 30, 2024, compared to $172.93 million at June 30, 2024 and $238.52 million at September 30, 2023, with the changes in fair value due to the change in interest rates.

Loans and Asset Quality:

Total loans held for investment were $11.41 billion at September 30, 2024, $11.45 billion June 30, 2024, and $11.17 billion at September 30, 2023.
Nonperforming assets were $7.47 million, or 0.04% of total assets, compared to $7.88 million, or 0.05%, at September 30, 2023, and $7.16 million, or 0.04%, in the linked quarter end.
Nonperforming loans were 0.06% of period end loans at September 30, 2024, September 30, 2023, and the linked quarter end.
Foreclosed property consisted of $884 thousand in repossessed autos at September 30, 2024, compared to $276 thousand in other real estate owned and $490 thousand in repossessed autos, for a total of $766 thousand in foreclosed property at September 30, 2023.

Deposits and Borrowings:

Total deposits were $14.36 billion compared to $14.27 billion at June 30, 2024 and $13.88 billion at September 30, 2023.
The ratio of period end loans held for investment to deposits was 79.46% compared to 80.24% at June 30, 2024 and 80.49% at September 30, 2023.
Noninterest-bearing deposits were 29.71% of total deposits at September 30, 2024 compared to 30.15% at June 30, 2024 and 32.02% at September 30, 2023. Noninterest-bearing deposits declined $177.23 million, or 3.99%, compared to September 30, 2023, and $36.15 million, or 0.84%, compared to the linked quarter.
Total borrowings were $290.82 million compared to $295.17 million at June 30, 2024 and $407.03 million at September 30, 2023.

Capital:

Common equity tier 1 capital ratio of 12.63%⁽¹⁾.
Tier 1 leverage capital ratio of 10.38%⁽¹⁾.
Tier 1 risk-based capital ratio of 12.75%⁽¹⁾.
Total risk-based capital ratio of 15.53% ⁽¹⁾ .
Book value per common share was $28.59 compared to $27.62 at June 30, 2024 and $26.28 at September 30, 2023.
Tangible book value per common share (non-GAAP) was $21.65 compared to $20.65 at June 30, 2024 and $19.28 at September 30, 2023.

⁽¹⁾ Preliminary.

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Now celebrating 25 years, TowneBank operates 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.19 billion as of September 30, 2024, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to close the transaction with Village Bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; our integration of Village Bank’s business to the extent that it may take longer or be more difficult, time-consuming or costly to accomplish than expected; deposit attrition, operating costs, customer losses and business disruption following the Village Bank transaction, including adverse effects on relationships with employees and customers; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2023, and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813


TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
			2024			2024			2024			2023			2023
Income and Performance Ratios:
	Total revenue	$	174,518		$	174,970		$	167,102		$	155,546		$	172,864
	Net income		43,126			43,039			35,127			28,545			44,745
	Net income available to common shareholders		42,949			42,856			34,687			28,804			44,862
	Net income per common share – diluted		0.57			0.57			0.46			0.39			0.60
	Book value per common share		28.59			27.62			27.33			27.24			26.28
	Book value per common share – tangible ^(non-GAAP)		21.65			20.65			20.31			20.28			19.28
	Return on average assets		1.00	%		1.01	%		0.83	%		0.68	%		1.06	%
	Return on average assets – tangible ^(non-GAAP)		1.09	%		1.11	%		0.92	%		0.77	%		1.17	%
	Return on average equity		8.12	%		8.43	%		6.84	%		5.75	%		8.96	%
	Return on average equity – tangible ^(non-GAAP)		11.42	%		12.03	%		9.87	%		8.53	%		12.97	%
	Return on average common equity		8.18	%		8.49	%		6.89	%		5.79	%		9.04	%
	Return on average common equity – tangible ^(non-GAAP)		11.54	%		12.16	%		9.98	%		8.62	%		13.11	%
	Noninterest income as a percentage of total revenue		35.66	%		37.68	%		38.23	%		30.74	%		34.60	%
Regulatory Capital Ratios (1):
	Common equity tier 1		12.63	%		12.43	%		12.20	%		12.18	%		12.19	%
	Tier 1		12.75	%		12.55	%		12.32	%		12.29	%		12.31	%
	Total		15.53	%		15.34	%		15.10	%		15.06	%		15.09	%
	Tier 1 leverage ratio		10.38	%		10.25	%		10.15	%		10.17	%		10.06	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	18.70x			19.08x			18.01x			18.48x			17.60x
	Allowance for credit losses on loans to period end loans		1.08	%		1.10	%		1.10	%		1.12	%		1.12	%
	Nonperforming loans to period end loans		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%
	Nonperforming assets to period end assets		0.04	%		0.04	%		0.05	%		0.05	%		0.05	%
	Net charge-offs (recoveries) to average loans (annualized)		0.02	%		—	%		0.02	%		—	%	(0.04		)%
	Net charge-offs (recoveries)	$	677		$	(19	)	$	520		$	68		$	(1,074	)

	Nonperforming loans	$	6,588		$	6,582		$	6,987		$	6,843		$	7,110
	Foreclosed property		884			581			780			908			766
	Total nonperforming assets	$	7,472		$	7,163		$	7,767		$	7,751		$	7,876
	Loans past due 90 days and still accruing interest	$	510		$	368		$	323		$	735		$	970
	Allowance for credit losses on loans	$	123,191		$	125,552		$	125,835		$	126,461		$	125,159
Mortgage Banking:
	Loans originated, mortgage	$	421,571		$	430,398		$	289,191		$	302,616		$	348,387
	Loans originated, joint venture		176,612			196,583			135,197			126,332			172,021
	Total loans originated	$	598,182		$	626,981		$	424,388		$	428,948		$	520,408
	Number of loans originated		1,637			1,700			1,247			1,237			1,487
	Number of originators		159			169			176			181			192
	Purchase %		91.49	%		94.85	%		95.66	%		95.06	%		95.96	%
	Loans sold	$	526,998		$	605,134		$	410,895		$	468,014		$	567,291
	Rate lock asset	$	1,548		$	1,930		$	1,681		$	895		$	1,348
	Gross realized gain on sales and fees as a % of loans originated		3.28	%		3.28	%		3.34	%		3.06	%		3.17	%
Other Ratios:
	Net interest margin		2.90	%		2.86	%		2.72	%		2.83	%		2.95	%
	Net interest margin-fully tax-equivalent ^(non-GAAP)		2.93	%		2.89	%		2.75	%		2.86	%		2.98	%
	Average earning assets/total average assets		90.43	%		90.36	%		90.52	%		90.48	%		90.73	%
	Average loans/average deposits		80.07	%		80.80	%		81.48	%		80.72	%		80.75	%
	Average noninterest deposits/total average deposits		30.19	%		30.06	%		30.25	%		31.69	%		33.50	%
	Period end equity/period end total assets		12.58	%		12.24	%		12.24	%		12.21	%		11.90	%
	Efficiency ratio ^(non-GAAP)		70.93	%		68.98	%		73.25	%		76.17	%		66.21	%
	(1) Current reporting period regulatory capital ratios are preliminary.


TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
*Available-for-sale securities, at fair value*		2024			2023			2024		Q3 23		Q2 24
U.S. agency securities	$	291,814		$	300,161		$	281,934		(2.78	)%	3.50	%
U.S. Treasury notes		28,655			26,721			27,701		7.24	%	3.44	%
Municipal securities		455,722			484,587			442,474		(5.96	)%	2.99	%
Trust preferred and other corporate securities		91,525			74,024			88,228		23.64	%	3.74	%
Mortgage-backed securities issued by GSEs and GNMA		1,496,631			1,079,303			1,411,883		38.67	%	6.00	%
Allowance for credit losses		(1,171	)		(1,343	)		(1,541	)	(12.81	)%	(24.01	)%
Total	$	2,363,176		$	1,963,453		$	2,250,679		20.36	%	5.00	%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	6,703		$	475		$	1,983		1,311.16	%	238.02	%
Total gross unrealized losses		(117,319	)		(238,993	)		(174,911	)	(50.91	)%	(32.93	)%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(110,616	)	$	(238,518	)	$	(172,928	)	(53.62	)%	(36.03	)%
*Held-to-maturity securities, at amortized cost*
U.S. agency securities	$	102,428		$	101,659		$	102,234		0.76	%	0.19	%
U.S. Treasury notes		96,942			433,015			97,171		(77.61	)%	(0.24	)%
Municipal securities		5,342			5,249			5,318		1.77	%	0.45	%
Trust preferred corporate securities		2,133			2,185			2,147		(2.38	)%	(0.65	)%
Mortgage-backed securities issued by GSEs		5,577			5,746			5,618		(2.94	)%	(0.73	)%
Allowance for credit losses		(77	)		(85	)		(79	)	(9.41	)%	(2.53	)%
Total	$	212,345		$	547,769		$	212,409		(61.23	)%	(0.03	)%

Total gross unrealized gains	$	323		$	82		$	175		293.90	%	84.57	%
Total gross unrealized losses		(7,929	)		(23,505	)		(12,880	)	(66.27	)%	(38.44	)%
Net unrealized gains (losses) in HTM securities	$	(7,606	)	$	(23,423	)	$	(12,705	)	(67.53	)%	(40.13	)%
Total unrealized gains (losses) on AFS and HTM securities	$	(118,222	)	$	(261,941	)	$	(185,633	)	(54.87	)%	(36.31	)%
										% Change
Loans Held For Investment	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Real estate – construction and development	$	1,118,669		$	1,325,976		$	1,190,768		(15.63	)%	(6.05	)%
Commercial real estate – owner occupied		1,655,345			1,686,888			1,673,582		(1.87	)%	(1.09	)%
Commercial real estate – non owner occupied		3,179,699			3,025,985			3,155,958		5.08	%	0.75	%
Real estate – multifamily		750,906			542,611			682,537		38.39	%	10.02	%
Residential 1-4 family		1,891,216			1,818,843			1,887,420		3.98	%	0.20	%
HELOC		408,565			371,861			408,273		9.87	%	0.07	%
Commercial and industrial business (C&I)		1,256,511			1,237,524			1,297,538		1.53	%	(3.16	)%
Government		521,681			523,456			517,954		(0.34	)%	0.72	%
Indirect		546,887			548,621			558,216		(0.32	)%	(2.03	)%
Consumer loans and other		83,039			91,206			79,501		(8.95	)%	4.45	%
Total	$	11,412,518		$	11,172,971		$	11,451,747		2.14	%	(0.34	)%

										% Change
Deposits	Q3			Q3			Q2			Q3 24 vs.		Q3 24 vs.
		2024			2023			2024		Q3 23		Q2 24
Noninterest-bearing demand	$	4,267,628		$	4,444,861		$	4,303,773		(3.99	)%	(0.84	)%
Interest-bearing:
Demand and money market accounts		6,990,103			6,764,415			6,940,086		3.34	%	0.72	%
Savings		319,970			350,031			312,881		(8.59	)%	2.27	%
Certificates of deposits		2,785,469			2,321,498			2,715,848		19.99	%	2.56	%
Total		14,363,170			13,880,805			14,272,588		3.48	%	0.63	%


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	September 30, 2024								June 30, 2024								September 30, 2023
				Interest			Average					Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,419,428		$	156,610		5.46	%	$	11,471,669		$	155,374		5.45	%	$	11,169,924		$	144,457		5.13	%
Taxable investment securities		2,376,102			20,940		3.53	%		2,368,476			21,671		3.66	%		2,373,731			18,645		3.14	%
Tax-exempt investment securities		168,768			1,686		4.00	%		156,503			1,521		3.89	%		206,639			1,993		3.86	%
Total securities		2,544,870			22,626		3.56	%		2,524,979			23,192		3.67	%		2,580,370			20,638		3.20	%
Interest-bearing deposits		1,226,445			15,249		4.95	%		1,182,816			14,512		4.93	%		1,230,582			15,031		4.85	%
Mortgage loans held for sale		208,513			3,247		6.23	%		165,392			2,945		7.12	%		227,426			3,928		6.91	%
Total earning assets		15,399,256			197,732		5.11	%		15,344,856			196,023		5.14	%		15,208,302			184,054		4.80	%
Less: allowance for loan losses		(125,331	)							(126,792	)							(125,553	)
Total nonearning assets		1,754,216								1,764,418								1,680,110
Total assets	$	17,028,141							$	16,982,482							$	16,762,859
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	6,917,622		$	48,896		2.81	%	$	6,896,176		$	48,161		2.81	%	$	6,605,853		$	41,381		2.49	%
Savings		315,338			842		1.06	%		317,774			845		1.07	%		356,116			938		1.05	%
Certificates of deposit		2,723,437			32,390		4.73	%		2,715,615			33,017		4.89	%		2,236,102			21,852		3.88	%
Total interest-bearing deposits		9,956,397			82,128		3.28	%		9,929,565			82,023		3.32	%		9,198,071			64,171		2.77	%
Borrowings		33,867			(25	)	(0.29	)%		100,165			1,627		6.43	%		299,105			3,382		4.42	%
Subordinated debt, net		256,309			2,237		3.49	%		256,093			2,236		3.49	%		255,446			2,245		3.52	%
Total interest-bearing liabilities		10,246,573			84,340		3.27	%		10,285,823			85,886		3.36	%		9,752,622			69,798		2.84	%
Demand deposits		4,305,783								4,267,590								4,633,856
Other noninterest-bearing liabilities		370,736								383,447								389,912
Total liabilities		14,923,092								14,936,860								14,776,390
Shareholders’ equity		2,105,049								2,045,622								1,986,469
Total liabilities and equity	$	17,028,141							$	16,982,482							$	16,762,859
Net interest income (tax-equivalent basis) (4)				$	113,392							$	110,137							$	114,256
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(1,110	)							(1,089	)							(1,198	)
Net interest income (GAAP)				$	112,282							$	109,048							$	113,058

Interest rate spread (2)(4)							1.84	%							1.78	%							1.96	%
Interest expense as a percent of average earning assets							2.18	%							2.25	%							1.82	%
Net interest margin (tax-equivalent basis) (3)(4)							2.93	%							2.89	%							2.98	%
Total cost of deposits							2.29	%							2.32	%							1.84	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.


TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Nine Months Ended								Nine Months Ended
	September 30, 2024								September 30, 2023
				Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,423,458		$	463,794		5.42	%	$	11,159,329		$	417,808		5.01	%
Taxable investment securities		2,395,007			61,327		3.41	%		2,420,634			52,656		2.90	%
Tax-exempt investment securities		162,294			4,756		3.91	%		201,535			5,883		3.89	%
Total securities		2,557,301			66,083		3.45	%		2,622,169			58,539		2.98	%
Interest-bearing deposits		1,192,319			43,995		4.93	%		1,179,952			40,168		4.55	%
Mortgage loans held for sale		163,755			7,908		6.44	%		168,822			8,079		6.38	%
Total earning assets		15,336,833			581,780		5.07	%		15,130,272			524,594		4.64	%
Less: allowance for loan losses		(126,508	)							(120,420	)
Total nonearning assets		1,748,215								1,637,952
Total assets	$	16,958,540							$	16,647,804
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	6,880,752		$	145,042		2.82	%	$	6,349,422		$	96,742		2.04	%
Savings		320,696			2,569		1.07	%		376,282			2,676		0.95	%
Certificates of deposit		2,674,509			94,928		4.74	%		1,964,718			47,358		3.22	%
Total interest-bearing deposits		9,875,957			242,539		3.28	%		8,690,422			146,776		2.26	%
Borrowings		115,171			4,679		5.34	%		505,856			17,644		4.60	%
Subordinated debt, net		256,094			6,710		3.49	%		253,612			6,650		3.50	%
Total interest-bearing liabilities		10,247,222			253,928		3.31	%		9,449,890			171,070		2.42	%
Demand deposits		4,265,971								4,873,945
Other noninterest-bearing liabilities		381,547								353,459
Total liabilities		14,894,740								14,677,294
Shareholders’ equity		2,063,800								1,970,510
Total liabilities and equity	$	16,958,540							$	16,647,804
Net interest income (tax-equivalent basis)(4)				$	327,852							$	353,524
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(3,304	)							(3,477	)
Net interest income (GAAP)				$	324,548							$	350,047

Interest rate spread (2)(4)							1.76	%							2.22	%
Interest expense as a percent of average earning assets							2.21	%							1.51	%
Net interest margin (tax-equivalent basis) (3)(4)							2.86	%							3.12	%
Total cost of deposits							2.29	%							1.45	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.


TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)


	September 30,			December 31,
		2024			2023
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	131,068		$	85,584
Interest-bearing deposits at FRB		1,061,596			939,356
Interest-bearing deposits in financial institutions		103,400			103,417
Total Cash and Cash Equivalents		1,296,064			1,128,357
Securities available for sale, at fair value (amortized cost of $2,474,963 and $2,292,963, and allowance for credit losses of $1,171 and $1,498 at September 30, 2024 and December 31, 2023, respectively)		2,363,176			2,129,342
Securities held to maturity, at amortized cost (fair value $204,816 and $462,656 at September 30, 2024 and December 31, 2023, respectively)		212,422			477,592
Less: Allowance for credit losses		(77	)		(84	)
Securities held to maturity, net of allowance for credit losses		212,345			477,508
Other equity securities		12,681			13,792
FHLB stock		12,134			21,372
Total Securities		2,600,336			2,642,014
Mortgage loans held for sale		264,320			149,987
Loans, net of unearned income and deferred costs		11,412,518			11,329,021
Less: allowance for credit losses		(123,191	)		(126,461	)
Net Loans		11,289,327			11,202,560
Premises and equipment, net		365,764			337,598
Goodwill		457,619			456,335
Other intangible assets, net		63,265			64,634
BOLI		279,325			277,445
Other assets		572,000			576,109
TOTAL ASSETS	$	17,188,020		$	16,835,039

LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,267,628		$	4,342,701
Interest-bearing:
Demand and money market accounts		6,990,103			6,757,619
Savings		319,970			336,492
Certificates of deposit		2,785,469			2,456,394
Total Deposits		14,363,170			13,893,206
Advances from the FHLB		3,405			203,958
Subordinated debt, net		256,444			255,796
Repurchase agreements and other borrowings		30,970			32,826
Total Borrowings		290,819			492,580
Other liabilities		371,316			393,375
TOTAL LIABILITIES		15,025,305			14,779,161
Preferred stock, authorized and unissued shares – 2,000,000		—			—
Common stock, $1.667 par value: 150,000,000 shares authorized;
75,068,662 and 74,893,462 shares issued at
September 30, 2024 and December 31, 2023, respectively		125,139			124,847
Capital surplus		1,117,279			1,112,761
Retained earnings		985,343			921,126
Common stock issued to deferred compensation trust, at cost:
1,056,823 and 1,004,717 shares at September 30, 2024 and December 31, 2023, respectively		(22,224	)		(20,813	)
Deferred compensation trust		22,224			20,813
Accumulated other comprehensive income (loss)		(81,482	)		(118,762	)
TOTAL SHAREHOLDERS’ EQUITY		2,146,279			2,039,972
Noncontrolling interest		16,436			15,906
TOTAL EQUITY		2,162,715			2,055,878
TOTAL LIABILITIES AND EQUITY	$	17,188,020		$	16,835,039

TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
INTEREST INCOME:
Loans, including fees	$	155,792		$	143,605		$	461,316		$	415,351
Investment securities		22,334			20,292			65,257			57,519
Interest-bearing deposits in financial institutions and federal funds sold		15,249			15,031			43,995			40,168
Mortgage loans held for sale		3,247			3,928			7,908			8,079
Total interest income		196,622			182,856			578,476			521,117
INTEREST EXPENSE:
Deposits		82,128			64,171			242,539			146,776
Advances from the FHLB		29			3,438			3,408			16,838
Subordinated debt, net		2,237			2,245			6,710			6,650
Repurchase agreements and other borrowings		(54	)		(56	)		1,271			806
Total interest expense		84,340			69,798			253,928			171,070
Net interest income		112,282			113,058			324,548			350,047
PROVISION FOR CREDIT LOSSES		(1,100	)		1,007			(2,154	)		16,232
Net interest income after provision for credit losses		113,382			112,051			326,702			333,815
NONINTEREST INCOME:
Residential mortgage banking income, net		11,786			10,648			35,685			31,380
Insurance commissions and related income, net		25,727			23,777			75,297			69,098
Property management income, net		11,221			12,800			42,306			40,433
Real estate brokerage income, net		—			(63	)		—			3,562
Service charges on deposit accounts		3,117			2,823			9,548			8,577
Credit card merchant fees, net		1,830			2,006			5,042			5,232
Investment commissions, net		2,835			2,363			7,759			6,581
BOLI		1,886			1,814			6,966			5,196
Gain on sale of equity investment		20			554			20			9,386
Other income		3,814			3,084			9,345			9,083
Net gain/(loss) on investment securities		—			—			74			—
Total noninterest income		62,236			59,806			192,042			188,528
NONINTEREST EXPENSE:
Salaries and employee benefits		72,123			67,258			214,849			204,124
Occupancy		9,351			9,027			28,490			27,579
Furniture and equipment		4,657			4,100			13,769			12,733
Amortization – intangibles		3,130			3,610			9,675			10,744
Software		6,790			6,130			19,947			17,922
Data processing		4,701			4,140			13,223			11,504
Professional fees		4,720			2,770			11,689			8,948
Advertising and marketing		4,162			3,653			12,268			12,012
Other expenses		17,266			17,014			52,565			61,762
Total noninterest expense		126,900			117,702			376,475			367,328
Income before income tax expense and noncontrolling interest		48,718			54,155			142,269			155,015
Provision for income tax expense		5,592			9,410			20,977			28,424
Net income	$	43,126		$	44,745		$	121,292		$	126,591
Net income attributable to noncontrolling interest		(177	)		117			(800	)		(1,680	)
Net income attributable to TowneBank	$	42,949		$	44,862		$	120,492		$	124,911
Per common share information
Basic earnings	$	0.57		$	0.60		$	1.61		$	1.67
Diluted earnings	$	0.57		$	0.60		$	1.61		$	1.67
Cash dividends declared	$	0.25		$	0.25		$	0.75		$	0.73


TOWNEBANK
Consolidated Balance Sheets – Five Quarter Trend
(dollars in thousands, except share data)


	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
	(unaudited)			(unaudited)			(unaudited)			(audited)			(unaudited)
ASSETS
Cash and due from banks	$	131,068		$	140,028		$	75,802		$	85,584		$	83,949
Interest-bearing deposits at FRB		1,061,596			1,062,115			926,635			939,356			1,029,276
Interest-bearing deposits in financial institutions		103,400			99,303			98,673			103,417			102,527
Total Cash and Cash Equivalents		1,296,064			1,301,446			1,101,110			1,128,357			1,215,752
Securities available for sale		2,363,176			2,250,679			2,204,101			2,129,342			1,963,453
Securities held to maturity		212,422			212,488			312,510			477,592			547,854
Less: allowance for credit losses		(77	)		(79	)		(82	)		(84	)		(85	)
Securities held to maturity, net of allowance for credit losses		212,345			212,409			312,428			477,508			547,769
Other equity securities		12,681			13,566			13,661			13,792			14,062
FHLB stock		12,134			12,134			12,139			21,372			16,634
Total Securities		2,600,336			2,488,788			2,542,329			2,642,014			2,541,918
Mortgage loans held for sale		264,320			200,762			150,727			149,987			188,048
Loans, net of unearned income and deferred costs		11,412,518			11,451,747			11,452,343			11,329,021			11,172,971
Less: Allowance for credit losses		(123,191	)		(125,552	)		(125,835	)		(126,461	)		(125,159	)
Net Loans		11,289,327			11,326,195			11,326,508			11,202,560			11,047,812
Premises and equipment, net		365,764			340,348			342,569			337,598			335,522
Goodwill		457,619			457,619			457,619			456,335			456,684
Other intangible assets, net		63,265			65,460			68,758			64,634			67,496
BOLI		279,325			277,434			279,293			277,445			275,240
Other assets		572,000			610,791			615,324			576,109			551,884
TOTAL ASSETS	$	17,188,020		$	17,068,843		$	16,884,237		$	16,835,039		$	16,680,356
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,267,628		$	4,303,773		$	4,194,132		$	4,342,701		$	4,444,861
Interest-bearing:
Demand and money market accounts		6,990,103			6,940,086			6,916,701			6,757,619			6,764,415
Savings		319,970			312,881			326,179			336,492			350,031
Certificates of deposit		2,785,469			2,715,848			2,689,062			2,456,394			2,321,498
Total Deposits		14,363,170			14,272,588			14,126,074			13,893,206			13,880,805
Advances from the FHLB		3,405			3,591			3,775			203,958			104,139
Subordinated debt, net		256,444			256,227			256,011			255,796			255,580
Repurchase agreements and other borrowings		30,970			35,351			31,198			32,826			47,315
Total Borrowings		290,819			295,169			290,984			492,580			407,034
Other liabilities		371,316			411,770			401,307			393,375			408,305
TOTAL LIABILITIES		15,025,305			14,979,527			14,818,365			14,779,161			14,696,144

Preferred stock		—			—			—			—			—
Common stock, $1.667 par value		125,139			125,090			125,009			124,847			124,837
Capital surplus		1,117,279			1,115,759			1,114,038			1,112,761			1,111,152
Retained earnings		985,343			961,162			937,065			921,126			911,042
Common stock issued to deferred compensation trust, at cost		(22,224	)		(22,756	)		(20,915	)		(20,813	)		(20,740	)
Deferred compensation trust		22,224			22,756			20,915			20,813			20,740
Accumulated other comprehensive income (loss)		(81,482	)		(129,224	)		(126,586	)		(118,762	)		(179,043	)
TOTAL SHAREHOLDERS’ EQUITY		2,146,279			2,072,787			2,049,526			2,039,972			1,967,988
Noncontrolling interest		16,436			16,529			16,346			15,906			16,224
TOTAL EQUITY		2,162,715			2,089,316			2,065,872			2,055,878			1,984,212
TOTAL LIABILITIES AND EQUITY	$	17,188,020		$	17,068,843		$	16,884,237		$	16,835,039		$	16,680,356


TOWNEBANK
Consolidated Statements of Income – Five Quarter Trend (unaudited)
(dollars in thousands, except share data)


	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
INTEREST INCOME:
Loans, including fees	$	155,792		$	154,549		$	150,974		$	146,810		$	143,605
Investment securities		22,334			22,928			19,996			20,464			20,292
Interest-bearing deposits in financial institutions and federal funds sold		15,249			14,512			14,234			13,967			15,031
Mortgage loans held for sale		3,247			2,945			1,716			2,886			3,928
Total interest income		196,622			194,934			186,920			184,127			182,856
INTEREST EXPENSE:
Deposits		82,128			82,023			78,388			73,200			64,171
Advances from the FHLB		29			942			2,438			917			3,438
Subordinated debt, net		2,237			2,236			2,236			2,236			2,245
Repurchase agreements and other borrowings		(54	)		685			640			41			(56	)
Total interest expense		84,340			85,886			83,702			76,394			69,798
Net interest income		112,282			109,048			103,218			107,733			113,058
PROVISION FOR CREDIT LOSSES		(1,100	)		(177	)		(877	)		2,446			1,007
Net interest income after provision for credit losses		113,382			109,225			104,095			105,287			112,051
NONINTEREST INCOME:
Residential mortgage banking income, net		11,786			13,422			10,477			8,035			10,648
Insurance commissions and related income, net		25,727			24,031			25,539			21,207			23,777
Property management income, net		11,221			14,312			16,773			7,358			12,800
Real estate brokerage income, net		—			—			—			(32	)		(63	)
Service charges on deposit accounts		3,117			3,353			3,079			3,056			2,823
Credit card merchant fees, net		1,830			1,662			1,551			1,476			2,006
Investment commissions, net		2,835			2,580			2,343			2,380			2,363
BOLI		1,886			3,238			1,842			2,206			1,814
Other income		3,834			3,324			2,206			2,127			3,638
Net gain/(loss) on investment securities		—			—			74			—			—
Total noninterest income		62,236			65,922			63,884			47,813			59,806
NONINTEREST EXPENSE:
Salaries and employee benefits		72,123			71,349			71,377			66,035			67,258
Occupancy		9,351			9,717			9,422			9,308			9,027
Furniture and equipment		4,657			4,634			4,478			4,445			4,100
Amortization – intangibles		3,130			3,298			3,246			3,411			3,610
Software		6,790			7,056			6,100			6,743			6,130
Data processing		4,701			4,606			3,916			3,529			4,140
Professional fees		4,720			3,788			3,180			3,339			2,770
Advertising and marketing		4,162			3,524			4,582			3,377			3,653
Other expenses		17,266			16,012			19,290			21,708			17,014
Total noninterest expense		126,900			123,984			125,591			121,895			117,702
Income before income tax expense and noncontrolling interest		48,718			51,163			42,388			31,205			54,155
Provision for income tax expense		5,592			8,124			7,261			2,660			9,410
Net income		43,126			43,039			35,127			28,545			44,745
Net income attributable to noncontrolling interest		(177	)		(183	)		(440	)		259			117
Net income attributable to TowneBank	$	42,949		$	42,856		$	34,687		$	28,804		$	44,862
Per common share information
Basic earnings	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Diluted earnings	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Basic weighted average shares outstanding		74,940,827			74,925,877			74,816,420			74,773,335			74,750,294
Diluted weighted average shares outstanding		75,141,661			75,037,955			74,979,501			74,793,557			74,765,515
Cash dividends declared	$	0.25		$	0.25		$	0.25		$	0.25		$	0.25

TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Revenue
Net interest income	$	111,569		$	112,189		$	108,029		$	322,280		$	349,165		$	(26,885	)	(7.70	)%
Service charges on deposit accounts		3,117			2,823			3,352			9,548			8,577			971		11.32	%
Credit card merchant fees		1,830			2,006			1,662			5,042			5,232			(190	)	(3.63	)%
Investment commissions, net		2,835			2,363			2,580			7,759			6,581			1,178		17.90	%
Other income		4,828			4,224			4,840			13,096			12,012			1,084		9.02	%
Subtotal		12,610			11,416			12,434			35,445			32,402			3,043		9.39	%
Net gain/(loss) on investment securities		—			—			—			74			—			74		N/M
Total noninterest income		12,610			11,416			12,434			35,519			32,402			3,117		9.62	%
Total revenue		124,179			123,605			120,463			357,799			381,567			(23,768	)	(6.23	)%

Provision for credit losses		(1,043	)		1,206			(170	)		(2,189	)		16,442			(18,631	)	(113.31	)%

Expenses
Salaries and employee benefits		47,148			42,727			46,640			140,261			128,161			12,100		9.44	%
Occupancy		6,963			6,637			7,194			21,217			19,717			1,500		7.61	%
Furniture and equipment		3,878			3,273			3,810			11,336			10,150			1,186		11.68	%
Amortization of intangible assets		1,072			1,296			1,117			3,352			3,918			(566	)	(14.45	)%
Other expenses		26,674			22,595			23,587			77,215			80,215			(3,000	)	(3.74	)%
Total expenses		85,735			76,528			82,348			253,381			242,161			11,220		4.63	%
Income before income tax, corporate allocation and noncontrolling interest		39,487			45,871			38,285			106,607			122,964			(16,357	)	(13.30	)%
Corporate allocation		1,223			1,291			1,232			3,524			3,763			(239	)	(6.35	)%
Income before income tax provision and noncontrolling interest		40,710			47,162			39,517			110,131			126,727			(16,596	)	(13.10	)%
Provision for income tax expense		3,495			7,440			5,130			12,731			21,204			(8,473	)	(39.96	)%
Net income		37,215			39,722			34,387			97,400			105,523			(8,123	)	(7.70	)%
Noncontrolling interest		(29	)		—			(58	)		34			—			34		N/M
Net income attributable to TowneBank	$	37,186		$	39,722		$	34,329		$	97,434		$	105,523		$	(8,089	)	(7.67	)%

Efficiency ratio ^(non-GAAP)		68.18	%		60.86	%		67.43	%		69.89	%		62.44	%		7.45	%	11.93	%


TOWNEBANK
Realty Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Revenue
Residential mortgage brokerage income, net	$	12,211		$	10,955		$	13,996		$	37,006		$	32,964		$	4,042		12.26	%
Real estate brokerage income, net		—			(63	)		—			—			3,562			(3,562	)	(100.00	)%
Title insurance and settlement fees		—			—			—			—			443			(443	)	(100.00	)%
Property management fees, net		11,221			12,800			14,312			42,306			40,433			1,873		4.63	%
Income (loss) from unconsolidated subsidiary		51			(63	)		67			148			(884	)		1,032		116.74	%
Gain on equity investment		—			—			—			—			8,833			(8,833	)	(100.00	)%
Net interest and other income		906			1,163			1,317			3,007			1,984			1,023		51.56	%
Total revenue		24,389			24,792			29,692			82,467			87,335			(4,868	)	(5.57	)%

Provision for credit losses		(57	)		(199	)		(7	)		35			(210	)		245		116.67	%

Expenses
Salaries and employee benefits		12,355			12,881			12,370			36,913			41,670			(4,757	)	(11.42	)%
Occupancy		1,638			1,669			1,811			5,019			5,559			(540	)	(9.71	)%
Furniture and equipment		604			600			596			1,794			1,933			(139	)	(7.19	)%
Amortization of intangible assets		637			742			781			2,094			2,166			(72	)	(3.32	)%
Other expenses		8,839			9,544			9,136			26,174			27,319			(1,145	)	(4.19	)%
Total expenses		24,073			25,436			24,694			71,994			78,647			(6,653	)	(8.46	)%

Income before income tax, corporate allocation and noncontrolling interest		373			(445	)		5,005			10,438			8,898			1,540		17.31	%
Corporate allocation		(484	)		(600	)		(490	)		(1,322	)		(1,800	)		478		(26.56	)%
Income before income tax provision and noncontrolling interest		(111	)		(1,045	)		4,515			9,116			7,098			2,018		28.43	%
Provision for income tax expense		18			(99	)		1,163			2,336			1,769			567		32.05	%
Net income		(129	)		(946	)		3,352			6,780			5,329			1,451		27.23	%
Noncontrolling interest		(148	)		117			(125	)		(834	)		(1,680	)		846		(50.36	)%
Net income attributable to TowneBank	$	(277	)	$	(829	)	$	3,227		$	5,946		$	3,649		$	2,297		62.95	%

Efficiency ratio excluding gain on equity investment ^(non-GAAP)		96.09	%		99.61	%		80.54	%		84.76	%		97.43	%	(12.67		)%	(13.00	)%

TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Nine Months Ended						Increase/(Decrease)
	September 30,						June 30,			September 30,						YTD 2024 over 2023
		2024			2023			2024			2024			2023		Amount			Percent
Commission and fee income
Property and casualty	$	23,157		$	22,103		$	22,225		$	66,104		$	60,259		$	5,845		9.70	%
Employee benefits		4,483			4,245			4,404			13,712			13,393			319		2.38	%
Specialized benefit services		—			133			—			10			445			(435	)	(97.75	)%
Total commissions and fees		27,640			26,481			26,629			79,826			74,097			5,729		7.73	%

Contingency and bonus revenue		2,731			2,335			2,951			10,185			9,343			842		9.01	%
Other income		25			557			6			41			573			(532	)	(92.84	)%
Total revenue		30,396			29,373			29,586			90,052			84,013			6,039		7.19	%

Employee commission expense		4,446			4,906			4,771			13,728			14,340			(612	)	(4.27	)%
Revenue, net of commission expense		25,950			24,467			24,815			76,324			69,673			6,651		9.55	%

Salaries and employee benefits		12,620			11,650			12,339			37,675			34,293			3,382		9.86	%
Occupancy		750			721			712			2,254			2,303			(49	)	(2.13	)%
Furniture and equipment		175			227			228			639			650			(11	)	(1.69	)%
Amortization of intangible assets		1,421			1,572			1,400			4,229			4,660			(431	)	(9.25	)%
Other expenses		2,126			1,568			2,263			6,303			4,614			1,689		36.61	%
Total operating expenses		17,092			15,738			16,942			51,100			46,520			4,580		9.85	%
Income before income tax, corporate allocation and noncontrolling interest		8,858			8,729			7,873			25,224			23,153			2,071		8.94	%
Corporate allocation		(739	)		(691	)		(742	)		(2,202	)		(1,963	)		(239	)	12.18	%
Income before income tax provision and noncontrolling interest		8,119			8,038			7,131			23,022			21,190			1,832		8.65	%
Provision for income tax expense		2,079			2,069			1,831			5,910			5,451			459		8.42	%
Net income		6,040			5,969			5,300			17,112			15,739			1,373		8.72	%
Noncontrolling interest		—			—			—			—			—			—		—	%
Net income attributable to TowneBank	$	6,040		$	5,969		$	5,300		$	17,112		$	15,739		$	1,373		8.72	%

Provision for income taxes		2,079			2,069			1,831			5,910			5,451			459		8.42	%
Depreciation, amortization and interest expense		1,550			1,726			1,529			4,632			5,115			(483	)	(9.44	)%
EBITDA ^(non-GAAP)	$	9,669		$	9,764		$	8,660		$	27,654		$	26,305		$	1,349		5.13	%

Efficiency ratio ^(non-GAAP)		60.44	%		59.21	%		62.63	%		61.43	%		60.55	%		0.88	%	1.45	%


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)

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

Return on average assets (GAAP)		1.00	%		1.06	%		1.01	%		0.95	%		1.00	%
Impact of excluding average goodwill and other intangibles and amortization		0.09	%		0.11	%		0.10	%		0.09	%		0.11	%
Return on average tangible assets (non-GAAP)		1.09	%		1.17	%		1.11	%		1.04	%		1.11	%

Return on average equity (GAAP)		8.12	%		8.96	%		8.43	%		7.80	%		8.48	%
Impact of excluding average goodwill and other intangibles and amortization		3.30	%		4.01	%		3.60	%		3.31	%		3.87	%
Return on average tangible equity (non-GAAP)		11.42	%		12.97	%		12.03	%		11.11	%		12.35	%

Return on average common equity (GAAP)		8.18	%		9.04	%		8.49	%		7.86	%		8.54	%
Impact of excluding average goodwill and other intangibles and amortization		3.36	%		4.07	%		3.67	%		3.37	%		3.95	%
Return on average tangible common equity (non-GAAP)		11.54	%		13.11	%		12.16	%		11.23	%		12.49	%

Book value (GAAP)	$	28.59		$	26.28		$	27.62		$	28.59		$	26.28
Impact of excluding average goodwill and other intangibles and amortization		(6.94	)		(7.00	)		(6.97	)		(6.94	)		(7.00	)
Tangible book value (non-GAAP)	$	21.65		$	19.28		$	20.65		$	21.65		$	19.28

Efficiency ratio (GAAP)		72.71	%		68.09	%		70.86	%		72.88	%		68.20	%
Impact of exclusions	(1.78		)%	(1.88		)%	(1.88		)%	(1.86		)%	(0.82		)%
Efficiency ratio (non-GAAP)		70.93	%		66.21	%		68.98	%		71.02	%		67.38	%

Average assets (GAAP)	$	17,028,141		$	16,762,859		$	16,982,482		$	16,958,540		$	16,647,804
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible assets (non-GAAP)	$	16,505,922		$	16,236,414		$	16,457,360		$	16,435,205		$	16,121,429

Average equity (GAAP)	$	2,105,049		$	1,986,469		$	2,045,622		$	2,063,800		$	1,970,510
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible equity (non-GAAP)	$	1,582,830		$	1,460,024		$	1,520,500		$	1,540,465		$	1,444,135

Average common equity (GAAP)	$	2,088,674		$	1,969,898		$	2,029,150		$	2,047,482		$	1,954,850
Less: average goodwill and intangible assets		522,219			526,445			525,122			523,335			526,375
Average tangible common equity (non-GAAP)	$	1,566,455		$	1,443,453		$	1,504,028		$	1,524,147		$	1,428,475

Net income (GAAP)	$	42,949		$	44,862		$	42,856		$	120,492		$	124,911
Amortization of intangibles, net of tax		2,473			2,852			2,605			7,643			8,488
Tangible net income (non-GAAP)	$	45,422		$	47,714		$	45,461		$	128,135		$	133,399

Total revenue (GAAP)	$	174,518		$	172,864		$	174,970		$	516,590		$	538,575
Net (gain)/loss on investment securities		—			—			—			(74	)		—
Other nonrecurring (income) loss		(20	)		(554	)		—			(20	)		(9,386	)
Total Revenue for efficiency calculation (non-GAAP)	$	174,498		$	172,310		$	174,970		$	516,496		$	529,189

Noninterest expense (GAAP)	$	126,900		$	117,702		$	123,984		$	376,475		$	367,328
Less: amortization of intangibles		3,130			3,610			3,298			9,675			10,744
Noninterest expense net of amortization (non-GAAP)	$	123,770		$	114,092		$	120,686		$	366,800		$	356,584


TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2023			2023			2023
Net income (GAAP)	$	42,949		$	42,856		$	34,687		$	28,804		$	44,862

Adjustments
Plus: Acquisition-related expenses, net of tax		460			18			564			56			458
Plus: FDIC special assessment, net of tax		—			(310	)		1,021			4,083			—
Less: Gain on sale of equity investments, net of noncontrolling interest		(16	)		—			—			(1,846	)		(438	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	43,393		$	42,564		$	36,272		$	31,097		$	44,882
Weighted average diluted shares		75,141,661			75,037,955			74,979,501			74,793,557			74,765,515
Diluted EPS (GAAP)	$	0.57		$	0.57		$	0.46		$	0.39		$	0.60
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	0.58		$	0.57		$	0.48		$	0.42		$	0.60
Average assets	$	17,028,141		$	16,982,482		$	16,864,235		$	16,683,041		$	16,762,859
Average tangible equity	$	1,582,830		$	1,520,500			1,517,600		$	1,465,216		$	1,460,024
Average common tangible equity	$	1,566,455		$	1,504,028		$	1,501,494		$	1,449,052		$	1,443,453
Return on average assets, excluding certain items affecting comparability (non-GAAP)		1.01	%		1.01	%		0.87	%		0.74	%		1.06	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		11.53	%		11.95	%		10.29	%		9.15	%		12.97	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		11.65	%		12.08	%		10.40	%		9.25	%		13.13	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		72.45	%		70.85	%		74.84	%		78.33	%		67.76	%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Nine Months Ended
	September 30,			September 30,
		2024			2023
Net income (GAAP)	$	120,492		$	124,911

Adjustments
Plus: Acquisition-related expenses, net of tax		1,040			7,718
Plus: FDIC special assessment, net of tax		711			—
Plus: Initial provision for acquired loans, net of tax		—			3,166
Less: Gain on sale of equity investments, net of noncontrolling interest and tax		(16	)		(5,951	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	122,227		$	129,844
Weighted average diluted shares		75,043,848			74,618,743
Diluted EPS (GAAP)	$	1.61		$	1.67
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	1.63		$	1.74
Average assets	$	16,958,540		$	16,647,804
Average tangible equity	$	1,540,465		$	1,444,135
Average tangible common equity	$	1,524,147		$	1,428,475
Return on average assets, excluding certain items affecting comparability (non-GAAP)		0.96	%		1.04	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		11.26	%		12.81	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		11.38	%		12.95	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		72.68	%		67.61	%

The MIL Network –

January 25, 2025

MIL-OSI: Live Oak Bancshares, Inc. Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

WILMINGTON, N.C., Oct. 23, 2024 (GLOBE NEWSWIRE) — Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported third quarter of 2024 net income of $13.0 million, or $0.28 per diluted share.

“Live Oak delivered historic production levels this quarter as our teams continue to put capital into the hands of business owners across the country,” said Live Oak Chairman and Chief Executive Officer James S. (Chip) Mahan III. “We believe our business momentum is in an exciting place and our conservative approach to growth is driving positive operating leverage, revenue, and deeper customer relationships.”

Third Quarter 2024 Key Measures

(Dollars in thousands, except per share data)							Increase (Decrease)
	3Q 2024			2Q 2024			Dollars			Percent			3Q 2023
Total revenue⁽¹⁾	$	129,932		$	125,479		$	4,453			3.5	%	$	127,301
Total noninterest expense		77,589			77,656			(67	)		(0.1	)		74,262
Income before taxes		17,841			36,058			(18,217	)		(50.5	)		42,760
Effective tax rate		27.0	%		25.2	%		n/a			n/a			6.9	%
Net income	$	13,025		$	26,963		$	(13,938	)		(51.7	)%	$	39,793
Diluted earnings per share		0.28			0.59			(0.31	)		(52.5	)		0.88
Loan and lease production:
Loans and leases originated	$	1,757,856		$	1,171,141		$	586,715			50.1	%	$	1,073,255
% Fully funded		42.4	%		38.2	%		n/a			n/a			52.2	%
Total loans and leases:	$	10,191,868		$	9,535,766		$	656,102			6.9	%	$	8,775,235
Total assets:		12,607,346			11,868,570			738,776			6.2			10,950,460
Total deposits:		11,400,547			10,707,031			693,516			6.5			10,003,642

(1) Total revenue consists of net interest income and total noninterest income.

Loans and Leases

As of September 30, 2024, the total loan and lease portfolio was $10.19 billion, 6.9% above its level at June 30, 2024, and 16.1% above its level a year ago. Excluding historical Paycheck Protection Program loans, the third quarter of 2024 was the Company’s highest loan production quarter of all time. Compared to the second quarter of 2024, loans and leases held for investment increased $659.8 million, or 7.2%, to $9.83 billion while loans held for sale decreased $3.7 million, or 1.0%, to $360.0 million. Average loans and leases were $9.76 billion during the third quarter of 2024 compared to $9.38 billion during the second quarter of 2024.

The total loan and lease portfolio at September 30, 2024, and June 30, 2024, was comprised of 34.5% and 36.4% of guaranteed loans, respectively.

Loan and lease originations totaled $1.76 billion during the third quarter of 2024, an increase of $586.7 million, or 50.1%, from the second quarter of 2024. Loan and lease originations increased $684.6 million, or 63.8%, from the third quarter of 2023.

Deposits

Total deposits increased to $11.40 billion at September 30, 2024, an increase of $693.5 million compared to June 30, 2024, and an increase of $1.40 billion compared to September 30, 2023. The increase in total deposits from prior periods was to support growth in the loan and lease portfolio as well as the Company’s targeted liquidity levels.

Average total interest-bearing deposits for the third quarter of 2024 increased $287.5 million, or 2.8%, to $10.56 billion, compared to $10.27 billion for the second quarter of 2024. The ratio of average total loans and leases to average interest-bearing deposits was 92.5% for the third quarter of 2024, compared to 91.4% for the second quarter of 2024.

Borrowings

Borrowings totaled $115.4 million at September 30, 2024 compared to $117.7 million and $25.8 million at June 30, 2024, and September 30, 2023, respectively. During the first quarter of 2024, the Company increased long-term borrowings by $100.0 million through an unsecured 5.95% fixed rate 60-month term loan with a third party correspondent bank. This increase in borrowings was to strategically enhance capital levels in order to accommodate future growth expectations.

Net Interest Income

Net interest income for the third quarter of 2024 was $97.0 million compared to $91.3 million for the second quarter of 2024 and $89.4 million for the third quarter of 2023. The net interest margin for the third quarter of 2024 and second quarter of 2024 was 3.33% and 3.28%, respectively, an increase of five basis points quarter over quarter. During the third quarter of 2024, the average cost of interest-bearing liabilities increased by two basis points, while the average yield on interest-earning assets increased by six basis points.

The increase in net interest income for the third quarter of 2024 compared to the third quarter of 2023 was largely driven by growth in average loans and leases held for investment. Partially mitigating this increase was a decrease in the net interest margin by four basis points arising from an increase in deposits and borrowings, combined with the increase in average cost of funds, outpacing the increase in average yield on interest-earning assets.

Noninterest Income

Noninterest income for the third quarter of 2024 was $32.9 million, a decrease of $1.2 million compared to the second quarter of 2024, and a decrease of $5.0 million compared to the third quarter of 2023. The primary drivers in noninterest income changes are outlined below.

The loan servicing asset revaluation resulted in a loss of $4.2 million for the third quarter of 2024 compared to a $11.3 million gain for the third quarter of 2023. This decrease between periods was principally due to the third quarter of 2023 change in valuation techniques used to estimate the fair value of servicing rights which resulted in a nonrecurring gain of $13.7 million during that period.

Net gains on sales of loans was $16.6 million, a $2.3 million increase compared to the second quarter of 2024 and a $4.0 million increase compared to the third quarter of 2023. The increase in net gains on sales of loans for both compared periods was the result of higher levels of market premiums combined with increased loan sale volumes. The average guaranteed loan sale premium was 107%, 106% and 105% for the third and second quarters of 2024 and third quarter of 2023, respectively. The volume of guaranteed loans sold was $266.3 million for the third quarter of 2024 compared to $250.5 million sold in the second quarter of 2024 and $225.6 million sold in the third quarter of 2023.

Loans accounted for under the fair value option had a net gain of $2.3 million for the third quarter of 2024, compared to a net gain of $172 thousand for the second quarter of 2024 and a net loss of $568 thousand for the third quarter of 2023. The increased levels of net gains arising from the valuation of loans accounted for under the fair value option compared to the second quarter of 2024 was largely associated with lower market interest rates. The increase in net gains when compared to the third quarter of 2023 was principally due to the third quarter of 2023 change in valuation techniques used to estimate the fair value of loans measured at fair value, which resulted in a nonrecurring gain of $1.3 million during that period.

Management fee income decreased by $2.2 million, as compared to both the second quarter of 2024 and third quarter of 2023. This decrease was the result of a restructuring of the Canapi Funds in the third quarter of 2024. In connection with that restructuring, the Company’s subsidiary Canapi Advisors voluntarily withdrew as an advisor to the funds. The Company remains an investor in the Canapi Funds and continues its focus on new and emerging financial technology companies.

Other noninterest income for the third quarter of 2024 totaled $7.1 million compared to $11.0 million for the second quarter of 2024 and $3.5 million for the third quarter of 2023. The quarter over quarter decrease of $3.9 million was largely related to a $6.7 million gain arising from the sale of one of the Company’s aircraft in the second quarter of 2024, partially offset by a $2.4 million gain from the sale of a building in the third quarter of 2024. The $3.6 million increase compared to the third quarter of 2023 was largely related to the above mentioned $2.4 million gain from the sale of an idle building and accompanying land that was determined earlier in 2024 not to be best suited to serve the Company’s future expansion plans.

Noninterest Expense

Noninterest expense for the third quarter of 2024 totaled $77.6 million compared to $77.7 million for the second quarter of 2024 and $74.3 million for the third quarter of 2023. Compared to the third quarter of 2023, the increase in noninterest expense was principally impacted by smaller balance increases in various expense categories, partially offset by $2.2 million in decreased levels of FDIC insurance expense. The decrease in FDIC insurance expense was the product of favorable changes in the Company’s FDIC assessment rates.

Asset Quality

During the third quarter of 2024, the Company recognized net charge-offs for loans carried at historical cost of $1.7 million, compared to $8.3 million in the second quarter of 2024 and $9.1 million in the third quarter of 2023. Net charge-offs as a percentage of average held for investment loans and leases carried at historical cost, annualized, for the quarters ended September 30, 2024, June 30, 2024, and September 30, 2023, was 0.08%, 0.38% and 0.48%, respectively.

Unguaranteed nonperforming (nonaccrual) loans and leases, excluding $8.7 million and $9.6 million accounted for under the fair value option at September 30, 2024, and June 30, 2024, respectively, increased to $49.4 million, or 0.52% of loans and leases held for investment which are carried at historical cost, at September 30, 2024, compared to $37.3 million, or 0.42%, at June 30, 2024.

Provision for Credit Losses

The provision for credit losses for the third quarter of 2024 totaled $34.5 million compared to $11.8 million for the second quarter of 2024 and $10.3 million for the third quarter of 2023. The level of provision expense in the third quarter of 2024 was primarily the result of specific reserve increases on individually evaluated loans and continued growth of the loan and lease portfolio. Provision expense for three individually evaluated loan relationships amounted to $13.6 million, or 60.0% and 56.3% of the increase in the total provision for loan and lease losses when compared to the second quarter of 2024 and third quarter of 2023, respectively.

The allowance for credit losses on loans and leases totaled $168.7 million at September 30, 2024, compared to $137.9 million at June 30, 2024. The allowance for credit losses on loans and leases as a percentage of total loans and leases held for investment carried at historical cost was 1.78% and 1.57% at September 30, 2024, and June 30, 2024, respectively.

Income Tax

Income tax expense and related effective tax rate was $4.8 million and 27.0% for the third quarter of 2024, $9.1 million and 25.2% for the second quarter of 2024 and $3.0 million and 6.9% for the third quarter of 2023, respectively. The lower level of income tax expense for the third quarter of 2024 compared to the second quarter of 2024 was primarily the result of the decreased level of pretax income. The higher level of income tax expense for the third quarter of 2024 as compared to the third quarter of 2023 was primarily the result of lower levels of anticipated investment tax credits in 2024 as compared to the prior year.

Conference Call

Live Oak will host a conference call to discuss the Company’s financial results and business outlook tomorrow, October 24, 2024, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 04478. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

Live Telephone Dial-In

U.S.: 800.549.8228
International: +1 646.564.2877
Pass Code: None Required

Live Webcast Log-In

Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company’s status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of global health crises and pandemics, such as the Coronavirus Disease 2019 (COVID-19) pandemic, on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company’s ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company’s business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company’s ability to comply with regulatory requirements and expectations; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoakbank.com.

Contacts:

Live Oak Bancshares, Inc.
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended															3Q 2024 Change vs.
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023			2Q 2024			3Q 2023
Interest income																%			%
Loans and fees on loans	$	192,170		$	181,840		$	176,010		$	169,531		$	162,722			5.7			18.1
Investment securities, taxable		9,750			9,219			8,954			8,746			8,701			5.8			12.1
Other interest earning assets		7,016			7,389			7,456			8,259			9,188			(5.0	)		(23.6	)
Total interest income		208,936			198,448			192,420			186,536			180,611			5.3			15.7
Interest expense
Deposits		110,174			105,358			101,998			96,695			90,914			4.6			21.2
Borrowings		1,762			1,770			311			265			287			(0.5	)		513.9
Total interest expense		111,936			107,128			102,309			96,960			91,201			4.5			22.7
Net interest income		97,000			91,320			90,111			89,576			89,410			6.2			8.5
Provision for credit losses		34,502			11,765			16,364			8,995			10,279			193.3			235.7
Net interest income after provision for credit losses		62,498			79,555			73,747			80,581			79,131			(21.4	)		(21.0	)
Noninterest income
Loan servicing revenue		8,040			7,347			7,624			7,342			6,990			9.4			15.0
Loan servicing asset revaluation		(4,207	)		(2,878	)		(2,744	)		(3,974	)		11,335			(46.2	)		(137.1	)
Net gains on sales of loans		16,646			14,395			11,502			12,891			12,675			15.6			31.3
Net gain (loss) on loans accounted for under the fair value option		2,255			172			(219	)		(170	)		(568	)		1211.0			497.0
Equity method investments (loss) income		(1,393	)		(1,767	)		(5,022	)		47			(1,034	)		21.2			(34.7	)
Equity security investments gains (losses), net		909			161			(529	)		(384	)		(783	)		464.6			216.1
Lease income		2,424			2,423			2,453			2,439			2,498			—			(3.0	)
Management fee income		1,116			3,271			3,271			3,309			3,277			(65.9	)		(65.9	)
Other noninterest income		7,142			11,035			9,761			8,607			3,501			(35.3	)		104.0
Total noninterest income		32,932			34,159			26,097			30,107			37,891			(3.6	)		(13.1	)
Noninterest expense
Salaries and employee benefits		44,524			46,255			47,275			44,274			42,947			(3.7	)		3.7
Travel expense		2,344			2,328			2,438			1,544			2,197			0.7			6.7
Professional services expense		3,287			3,061			1,878			3,052			1,762			7.4			86.5
Advertising and marketing expense		2,473			3,004			3,692			2,501			3,446			(17.7	)		(28.2	)
Occupancy expense		2,807			2,388			2,247			2,231			2,129			17.5			31.8
Technology expense		9,081			7,996			7,723			8,402			7,722			13.6			17.6
Equipment expense		3,472			3,511			3,074			3,480			3,676			(1.1	)		(5.5	)
Other loan origination and maintenance expense		4,872			3,659			3,911			3,937			3,498			33.2			39.3
Renewable energy tax credit investment impairment (recovery)		115			170			(927	)		14,575			—			(32.4	)		100.0
FDIC insurance		1,933			2,649			3,200			4,091			4,115			(27.0	)		(53.0	)
Other expense		2,681			2,635			3,226			5,117			2,770			1.7			(3.2	)
Total noninterest expense		77,589			77,656			77,737			93,204			74,262			(0.1	)		4.5
Income before taxes		17,841			36,058			22,107			17,484			42,760			(50.5	)		(58.3	)
Income tax expense (benefit)		4,816			9,095			(5,479	)		1,321			2,967			(47.0	)		62.3
Net income	$	13,025		$	26,963		$	27,586		$	16,163		$	39,793			(51.7	)		(67.3	)
Earnings per share
Basic	$	0.28		$	0.60		$	0.62		$	0.36		$	0.89			(53.3	)		(68.5	)
Diluted	$	0.28		$	0.59		$	0.60		$	0.36		$	0.88			(52.5	)		(68.2	)
Weighted average shares outstanding
Basic		45,073,482			44,974,942			44,762,308			44,516,646			44,408,997
Diluted		45,953,947			45,525,082			45,641,210			45,306,506			45,268,745

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)

	As of the quarter ended															3Q 2024 Change vs.
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023			2Q 2024			3Q 2023
Assets																%			%
Cash and due from banks	$	666,585		$	615,449		$	597,394		$	582,540		$	534,774			8.3			24.6
Certificates of deposit with other banks		250			250			250			250			3,750			—			(93.3	)
Investment securities available-for-sale		1,233,466			1,151,195			1,120,622			1,126,160			1,099,878			7.1			12.1
Loans held for sale		359,977			363,632			310,749			387,037			572,604			(1.0	)		(37.1	)
Loans and leases held for investment⁽¹⁾		9,831,891			9,172,134			8,912,561			8,633,847			8,202,631			7.2			19.9
Allowance for credit losses on loans and leases		(168,737	)		(137,867	)		(139,041	)		(125,840	)		(121,273	)		(22.4	)		(39.1	)
Net loans and leases		9,663,154			9,034,267			8,773,520			8,508,007			8,081,358			7.0			19.6
Premises and equipment, net		267,032			267,864			258,071			257,881			258,041			(0.3	)		3.5
Foreclosed assets		8,015			8,015			8,561			6,481			6,701			—			19.6
Servicing assets		52,553			51,528			49,343			48,591			47,127			2.0			11.5
Other assets		356,314			376,370			387,059			354,476			346,227			(5.3	)		2.9
Total assets	$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		$	10,950,460			6.2			15.1
Liabilities and shareholders’ equity
*Liabilities*
Deposits:
Noninterest-bearing	$	258,844		$	264,013		$	226,668		$	259,270		$	239,536			(2.0	)		8.1
Interest-bearing		11,141,703			10,443,018			10,156,693			10,015,749			9,764,106			6.7			14.1
Total deposits		11,400,547			10,707,031			10,383,361			10,275,019			10,003,642			6.5			14.0
Borrowings		115,371			117,745			120,242			23,354			25,847			(2.0	)		346.4
Other liabilities		83,672			82,745			74,248			70,384			70,603			1.1			18.5
Total liabilities		11,599,590			10,907,521			10,577,851			10,368,757			10,100,092			6.3			14.8
*Shareholders’ equity*
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—			—			—			—			—			—
Class A common stock (voting)		361,925			356,381			349,648			344,568			340,929			1.6			6.2
Class B common stock (non-voting)		—			—			—			—			—			—			—
Retained earnings		707,026			695,172			669,307			642,817			627,759			1.7			12.6
Accumulated other comprehensive loss		(61,195	)		(90,504	)		(91,237	)		(84,719	)		(118,320	)		32.4			48.3
Total shareholders’ equity		1,007,756			961,049			927,718			902,666			850,368			4.9			18.5
Total liabilities and shareholders’ equity	$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		$	10,950,460			6.2			15.1

(1) Includes $343.4 million, $363.0 million, $379.2 million, $388.0 million and $410.1 million measured at fair value for the quarters ended September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)

	Nine Months Ended
	September 30, 2024			September 30, 2023
Interest income
Loans and fees on loans	$	550,020		$	454,136
Investment securities, taxable		27,923			24,751
Other interest earning assets		21,861			22,852
Total interest income		599,804			501,739
Interest expense
Deposits		317,530			243,512
Borrowings		3,843			2,498
Total interest expense		321,373			246,010
Net interest income		278,431			255,729
Provision for credit losses		62,631			42,328
Net interest income after provision for credit losses		215,800			213,401
Noninterest income
Loan servicing revenue		23,011			20,057
Loan servicing asset revaluation		(9,829	)		8,860
Net gains on sales of loans		42,543			33,654
Net gain (loss) on loans accounted for under the fair value option		2,208			(3,369	)
Equity method investments (loss) income		(8,182	)		(6,041	)
Equity security investments gain (losses), net		541			(585	)
Lease income		7,300			7,568
Management fee income		7,658			10,015
Other noninterest income		27,938			11,467
Total noninterest income		93,188			81,626
Noninterest expense
Salaries and employee benefits		138,054			130,778
Travel expense		7,110			7,378
Professional services expense		8,226			4,685
Advertising and marketing expense		9,169			10,058
Occupancy expense		7,442			6,259
Technology expense		24,800			23,456
Equipment expense		10,057			11,517
Other loan origination and maintenance expense		12,442			10,867
Renewable energy tax credit investment (recovery) impairment		(642	)		69
FDIC insurance		7,782			12,579
Other expense		8,542			12,035
Total noninterest expense		232,982			229,681
Income before taxes		76,006			65,346
Income tax expense		8,432			7,611
Net income	$	67,574		$	57,735
Earnings per share
Basic	$	1.50		$	1.30
Diluted	$	1.48		$	1.28
Weighted average shares outstanding
Basic		44,937,409			44,298,798
Diluted		45,707,245			45,023,739

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)

	As of and for the three months ended
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023
Income Statement Data
Net income	$	13,025		$	26,963		$	27,586		$	16,163		$	39,793
Per Common Share
Net income, diluted	$	0.28		$	0.59		$	0.60		$	0.36		$	0.88
Dividends declared		0.03			0.03			0.03			0.03			0.03
Book value		22.32			21.35			20.64			20.23			19.12
Tangible book value⁽¹⁾		22.24			21.28			20.57			20.15			19.04
Performance Ratios
Return on average assets (annualized)		0.43	%		0.93	%		0.98	%		0.58	%		1.46	%
Return on average equity (annualized)		5.21			11.39			11.93			7.36			18.68
Net interest margin		3.33			3.28			3.33			3.32			3.37
Efficiency ratio⁽¹⁾		59.72			61.89			66.89			77.88			58.34
Noninterest income to total revenue		25.35			27.22			22.46			25.16			29.76
Selected Loan Metrics
Loans and leases originated	$	1,757,856		$	1,171,141		$	805,129		$	981,703		$	1,073,255
Outstanding balance of sold loans serviced		4,452,750			4,292,857			4,329,097			4,238,328			4,028,575
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment⁽³⁾		1.78	%		1.57	%		1.63	%		1.53	%		1.56	%
Net charge-offs⁽³⁾	$	1,710		$	8,253		$	3,163		$	4,428		$	9,122
Net charge-offs to average loans and leases held for investment^{(2) (3)}		0.08	%		0.38	%		0.15	%		0.22	%		0.48	%

Nonperforming loans and leases at historical cost⁽³⁾
Unguaranteed	$	49,398		$	37,340		$	43,117		$	39,285		$	33,255
Guaranteed		166,177			122,752			105,351			95,678			65,837
Total		215,575			160,092			148,468			134,963			99,092
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment⁽³⁾		0.52	%		0.42	%		0.51	%		0.48	%		0.43	%

Nonperforming loans at fair value⁽⁴⁾
Unguaranteed	$	8,672		$	9,590		$	7,942		$	7,230		$	6,518
Guaranteed		49,822			51,570			47,620			41,244			39,378
Total		58,494			61,160			55,562			48,474			45,896
Unguaranteed nonperforming fair value loans to fair value loans held for investment⁽⁴⁾		2.53	%		2.64	%		2.09	%		1.86	%		1.59	%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		11.19	%		11.85	%		11.89	%		11.73	%		11.63	%
Tier 1 leverage capital (to average assets)		8.60			8.71			8.69			8.58			8.56

Notes to Quarterly Selected Financial Data
(1) See accompanying GAAP to Non-GAAP Reconciliation.
(2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3) Loans and leases at historical cost only (excludes loans measured at fair value).
(4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)

	Three Months Ended September 30, 2024								Three Months Ended June 30, 2024
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	519,340		$	7,016		5.37	%	$	555,570		$	7,389		5.35	%
Investment securities		1,287,410			9,750		3.01			1,263,675			9,219		2.93
Loans held for sale		409,902			9,859		9.57			387,824			9,329		9.67
Loans and leases held for investment⁽¹⁾		9,354,522			182,311		7.75			8,997,164			172,511		7.71
Total interest-earning assets		11,571,174			208,936		7.18			11,204,233			198,448		7.12
Less: Allowance for credit losses on loans and leases		(137,285	)							(136,668	)
Noninterest-earning assets		567,098								562,488
Total assets	$	12,000,987							$	11,630,053
Interest-bearing liabilities:
Interest-bearing checking	$	350,239		$	4,892		5.56	%	$	304,505		$	4,267		5.64	%
Savings		5,043,930			51,516		4.06			4,804,037			48,617		4.07
Money market accounts		134,481			190		0.56			128,625			186		0.58
Certificates of deposit		5,028,830			53,576		4.24			5,032,856			52,288		4.18
Total deposits		10,557,480			110,174		4.15			10,270,023			105,358		4.13
Borrowings		116,925			1,762		6.00			119,321			1,770		5.97
Total interest-bearing liabilities		10,674,405			111,936		4.17			10,389,344			107,128		4.15
Noninterest-bearing deposits		237,387								223,026
Noninterest-bearing liabilities		90,079								70,667
Shareholders’ equity		999,116								947,016
Total liabilities and shareholders’ equity	$	12,000,987							$	11,630,053
Net interest income and interest rate spread				$	97,000		3.01	%				$	91,320		2.97	%
Net interest margin							3.33								3.28
Ratio of average interest-earning assets to average interest-bearing liabilities							108.40	%							107.84	%

(1) Average loan and lease balances include non-accruing loans and leases.

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)

	As of and for the three months ended
	3Q 2024			2Q 2024			1Q 2024			4Q 2023			3Q 2023
Total shareholders’ equity	$	1,007,756		$	961,049		$	927,718		$	902,666		$	850,368
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,606			1,644			1,682			1,721			1,759
Tangible shareholders’ equity (a)	$	1,004,353		$	957,608		$	924,239		$	899,148		$	846,812
Shares outstanding (c)		45,151,691			45,003,856			44,938,673			44,617,673			44,480,215
Total assets	$	12,607,346		$	11,868,570		$	11,505,569		$	11,271,423		$	10,950,460
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,606			1,644			1,682			1,721			1,759
Tangible assets (b)	$	12,603,943		$	11,865,129		$	11,502,090		$	11,267,905		$	10,946,904
Tangible shareholders’ equity to tangible assets (a/b)		7.97	%		8.07	%		8.04	%		7.98	%		7.74	%
Tangible book value per share (a/c)	$	22.24		$	21.28		$	20.57		$	20.15		$	19.04
Efficiency ratio:
Noninterest expense (d)	$	77,589		$	77,656		$	77,737		$	93,204		$	74,262
Net interest income		97,000			91,320			90,111			89,576			89,410
Noninterest income		32,932			34,159			26,097			30,107			37,891
Total revenue (e)	$	129,932		$	125,479		$	116,208		$	119,683		$	127,301
Efficiency ratio (d/e)		59.72	%		61.89	%		66.89	%		77.88	%		58.34	%
Pre-provision net revenue (e-d)	$	52,343		$	47,823		$	38,471		$	26,479		$	53,039

This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business, for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

The MIL Network –

January 25, 2025

MIL-OSI: SOLOWIN HOLDINGS Announces New Equity Research Report from Diamond Equity Research

Source: GlobeNewswire (MIL-OSI)

HONG KONG, Oct. 23, 2024 (GLOBE NEWSWIRE) — SOLOWIN HOLDINGS (Nasdaq: SWIN) (“SOLOWIN” or the “Company”), a securities brokerage company that offers comprehensive financial services primarily to Chinese investors globally, today announced the release of a new research report from Diamond Equity Research, an issuer sponsored equity research firm focused on small capitalization companies, covering the Company’s ordinary shares.

The Company has worked with Diamond Equity Research to perform independent research that will create greater awareness and exposure in the investment community for the Company’s comprehensive financial services. The new report is available at https://ml.globenewswire.com/Resource/Download/e6dc93a4-4889-4bb6-a8e2-97c15cafd474.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the Company’s securities, nor shall there be any sale of such securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About SOLOWIN HOLDINGS

Solowin Holdings (NASDAQ: SWIN) is a Hong Kong based financial services firm providing a comprehensive one-stop solution for high-net-worth and institutional investors worldwide. Spanning both traditional and virtual assets, Solowin’s offerings include investment banking, wealth management, asset management, and Web3 solutions, tailored to support the next generation of investors. Solowin’s wholly owned subsidiary, Solomon JFZ (Asia) Holdings Limited (“Solomon JFZ”), is one of Hong Kong’s first batch regulated virtual asset service providers. Its advanced electronic platform, Solomon VA+, is Hong Kong’s first app to integrate traditional and virtual asset trading with wealth management services.

For more information, visit the Company’s website at https://solowin.io

Or investor relationship website at http://ir.solomonwin.com.hk

About Diamond Equity Research

Diamond Equity Research is an equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms. For more information, please visit www.diamondequityresearch.com.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the Company’s most recent annual report on Form 20-F as well as in other reports filed or furnished from time to time with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the SEC, which are available for review at www.sec.gov.

For investor and media inquiries please contact:

SOLOWIN HOLDINGS
Investor Relations Department
Email: ir@solomonwin.com.hk

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

The MIL Network –

January 25, 2025

MIL-OSI: TransAlta Declares Dividends

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Oct. 23, 2024 (GLOBE NEWSWIRE) — The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) declared a quarterly dividend of $0.06 per common share payable on January 1, 2025, to shareholders of record at the close of business on December 1, 2024.

The Board of Directors also declared the following quarterly dividend on its Cumulative Redeemable Rate Reset First Preferred Shares for the period starting from and including September 30, 2024, up to but excluding December 31, 2024:

Preferred Shares	TSX Stock Symbol	Dividend Rate	Dividend Per Share	Record Date	Payment Date
Series A	TA.PR.D	2.877%	$0.17981	December 1, 2024	December 31, 2024
Series B*	TA.PR.E	6.235%	$0.39182	December 1, 2024	December 31, 2024
Series C	TA.PR.F	5.854%	$0.36588	December 1, 2024	December 31, 2024
Series D*	TA.PR.G	7.305%	$0.45906	December 1, 2024	December 31, 2024
Series E	TA.PR.H	6.894%	$0.43088	December 1, 2024	December 31, 2024
Series G	TA.PR.J	6.773%	$0.42331	December 1, 2024	December 31, 2024

* Please note the quarterly floating rate on the Series B and Series D Preferred Shares will be reset every quarter.

All currency is expressed in Canadian dollars except where noted. When the dividend payment date falls on a weekend or holiday the payment is made the following business day.

About TransAlta Corporation:

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 113 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

For more information about TransAlta, visit our web site at transalta.com.

For more information:

*Investor Inquiries:*	*Media Inquiries:*
Phone: 1-800-387-3598 in Canada and US	Phone: 1-855-255-9184
Email: investor_relations@transalta.com	Email: ta_media_relations@transalta.com

The MIL Network –

January 25, 2025

MIL-OSI: Innventure, Inc. Announces Financing Agreements to Further Strengthen Balance Sheet

Source: GlobeNewswire (MIL-OSI)

Enters $50 Million Secured Line of Credit with Western Technology Investment

Issues Approximately $11 Million of Series B Preferred Stock

ORLANDO, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — Innventure, Inc. (Nasdaq: INV) (“Innventure”), a technology commercialization platform, today announced two financing arrangements to bolster its capital position and provide additional operating flexibility.

The Company entered into a $50 million secured line of credit (the “Line of Credit”) with Western Technology Investment (“WTI”). The Company expects to draw on the Line of Credit in multiple installments through March 31, 2025, subject to the satisfaction of certain conditions and achievement of certain commercial milestones by certain dates.

Innventure also entered into investment agreements at the time of closing of the business combination the (“Business Combination”) with certain qualified investors for the issuance and sale of approximately $11 million of Series B Preferred Stock in a private placement of Series B Preferred Stock. Proceeds from this offering augmented the $11.3 million of trust assets that were not redeemed in connection with the Business Combination.

“These financing agreements are a testament to Innventure’s differentiated business model and mark a significant milestone as a newly public company,” said Bill Haskell, CEO of Innventure. “The Line of Credit and private placement, together with our conditional $75 million Standby Equity Purchase Agreement with Yorkville, strengthen Innventure’s financial position and provide even greater opportunity to continue identifying, funding and commercializing transformative technologies.”

About Innventure
Innventure founds, funds, and operates companies with a focus on transformative, sustainable technology solutions acquired or licensed from multinational corporations. Innventure takes what it believes to be breakthrough technologies from early evaluation to scaled commercialization utilizing an approach designed to help mitigate risk as it builds disruptive companies it believes have the potential to achieve a target enterprise value of at least $1 billion. Innventure defines ‘‘disruptive’’ as innovations that have the ability to significantly change the way businesses, industries, markets and/or consumers operate.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, including statements about the Company’s business model, the financial condition and prospects of the Company. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may refer to projections and forecasts. Forward-looking statements are often identified by future or conditional words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “will,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements are based on the current expectations of the Company’s management and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of this press release. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled “Risk Factors” in the Form S-4, which was filed in connection with the Business Combination and was declared effective by the Securities and Exchange Commission, and those discussed and identified in other public filings made with the Securities and Exchange Commission by the Company and the following: (a) expectations regarding the Company’s and the Innventure Companies’ (as defined below) strategies and future financial performance, including their future business plans, expansion and acquisition plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and the Company’s ability to invest in growth initiatives; (b) the implementation, market acceptance and success of the Company’s and the Innventure Companies’ business models and growth strategies; (c) the Company’s future capital requirements and sources and uses of cash; (d) the Company’s ability to meet the various conditions, including the available cash and performance targets, and access any of the installments draws under the Line of Credit; (e) the Company’s ability to meet the various conditions and satisfy the various limitations under the Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd., including exchange caps, issuances and subscriptions based on trading volumes, to access the funds available under the SEPA; (f) that the Company will have sufficient capital following the completion of the Business Combination to operate as anticipated; (g) the Company’s ability to obtain funding for its operations and future growth; (h) developments and projections relating to the Company’s and the Innventure Companies’ competitors and industry; (i) the Innventure Companies’ ability to meet, and to continue to meet, applicable regulatory requirements for the use of their products and the numerous regulatory requirements generally applicable to their products and facilities; (j) the outcome of any legal proceedings that may be instituted against the Company in connection with the completion of the Business Combination; (k) the Company’s ability to find future opportunities to license or acquire breakthrough technology solutions from multinational corporations (“MNCs”) and to satisfy the requirements imposed by or to avoid disagreements with its current and future MNC partners; (l) the risk that the Company may be deemed an investment company under the Investment Company Act, which would impose burdensome compliance requirements and restrictions on its activities; (m) the Company’s ability to sufficiently protect the intellectual property rights of itself and its subsidiaries, and to avoid or resolve in a timely and cost-effective manner any disputes that may arise relating to its use of the intellectual property of third parties; (n) the risk of a cyber-attack or a failure of the Company’s information technology and data security infrastructure; (o) the ability to recognize the anticipated benefits of the Business Combination; (p) unexpected costs related to the Business Combination; (q) geopolitical risk and changes in applicable laws or regulations; (r) potential adverse effects of other economic, business, and/or competitive factors; and (s) operational risks related to the Company and its subsidiaries.

Except to the extent required by applicable law or regulation, the Company undertakes no obligation to update statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

Media Contact: Laurie Steinberg, Solebury Strategic Communications
press@innventure.com

Investor Relations Contact: Sloan Bohlen, Solebury Strategic Communications
investorrelations@innventure.com

The MIL Network –

January 25, 2025

MIL-OSI: First Bank Announces Third Quarter 2024 Net Income of $8.2 Million

Source: GlobeNewswire (MIL-OSI)

Results reflect strong loan and deposit growth, solid asset quality, and balance sheet optimization initiatives

HAMILTON, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced results for the third quarter of 2024. Net income for the third quarter of 2024 was $8.2 million, or $0.32 per diluted share. Return on average assets, return on average equity and return on average tangible equity^[i] for the third quarter of 2024 were 0.88%, 8.15% and 9.42%, respectively. The Bank recorded a net loss of $1.3 million, or a loss of $0.05 per diluted share, and losses on average assets, equity, and tangible equityⁱ of 0.14%, 1.43%, and 1.66%, respectively, for the third quarter of 2023. Financial results for the third quarter of 2023 were negatively impacted by the Malvern Bancorp acquisition, completed in July 2023, primarily due to the merger-related expenses and the initial credit loss expense on acquired loans.

Third Quarter 2024 Performance Highlights:

Total loans of $3.09 billion at September 30, 2024 grew $89.5 million, or 11.9%, annualized, from the linked quarter ended June 30, 2024. Loan growth occurred late in the quarter, which is reflected in average loan balance increase of only $12.2 million during the quarter ended September 30, 2024. The growth was primarily driven by $56.9 million expansion within the Commercial and Industrial and Owner-occupied commercial real estate loan categories.
Total deposits of $3.05 billion at September 30, 2024 grew $82.4 million, or 11.1%, annualized, from the linked quarter. Growth occurred across all deposit categories, as non-interest bearing demand, interest bearing demand, money market and savings, and time deposits increased $19.3 million, $23.3 million, $36.3 million, and $3.6 million, respectively, from the second quarter of 2024.
Tangible book value per share^[ii] grew to $13.84 at September 30, 2024, increasing 11.2%, annualized, from $13.46 at June 30, 2024.
The Bank continued to prioritize balance sheet efficiency, selling approximately $11.7 million of investment securities during the quarter ended September 30, 2024 which resulted in a $555,000 net loss on the sale of investments during the quarter. The Bank also completed a restructuring of its bank-owned life insurance (BOLI) portfolio during the quarter which resulted in approximately $24 million in terminated policies and the acquisition of approximately $20 million in new policies. As a result of the restructure, the Bank recorded a $1.1 million enhancement to the cash surrender value and recognized additional income tax expense totaling $1.2 million.
Strong asset quality continued, with nonperforming assets decreasing by 9 basis points to 0.47% of total assets at September 30, 2024 from 0.56% at June 30, 2024.

Patrick L. Ryan, President and CEO of First Bank, reflected on the Bank’s performance, stating, “First Bank’s outstanding third quarter growth is an outcome of a well-executed long-term strategy. We have worked to build teams, products, and operating structures that promote quality growth over the long term, and the results are evident. Our teams added high-quality loans and deposits across all categories. We also continued to optimize the Bank’s efficiency as our efficiency ratio^[iii] remained below 60% for the 21st consecutive quarter. We continued to enact strategies to enhance future profitability and complement our organic growth efforts including ongoing balance sheet restructuring through the sale of certain lower-yielding investment securities, and we opportunistically restructured our BOLI policies during the quarter, an initiative that will be accretive to future earnings. The current quarter highlighted our efforts to build our core community banking customer base while we expand our specialty banking teams and continued investment in technology to improve the customer experience.”

Mr. Ryan added, “We are pleased with our ability to generate solid returns for our shareholders, including this quarter’s 11% annualized growth in tangible book value per share. We continue to explore a variety of opportunities to drive future earnings. Our recent receipt of regulatory approval to initiate stock repurchases also adds to our toolkit of options to support continued and growing returns for our shareholders.”

Income Statement

In the third quarter of 2024, the Bank’s net interest income increased to $30.1 million, growing $1.5 million, or 5.2%, compared to the same period in 2023. The increase was primarily due to net interest margin expansion in the third quarter of 2024 compared to the third quarter of 2023. Net interest income decreased $446,000, or 1.5%, from the linked second quarter of 2024. The modest decrease was primarily due to net interest margin compression and the timing of our loan growth, which occurred late in the third quarter, limiting interest income received during the quarter. During the third quarter, a $606,000 increase in interest income compared to the second quarter of 2024 was primarily related to higher earning asset balances, which was offset by a $1.1 million increase in interest expense, resulting from increased deposit costs and a higher level of average borrowings.

The Bank’s tax equivalent net interest margin of 3.49% for the third quarter of 2024 represented an increase of 13 basis points from the quarter ended September 30, 2023 and a decrease of 13 basis points from the linked quarter ended June 30, 2024. The Bank’s tax equivalent net interest margin includes the impact of amortization and accretion of premiums and discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions. Amortization of premiums and accretion of discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions totaled $3.4 million during the third quarter of 2024, compared to $2.7 million for the quarter ended September 30, 2023 and $3.6 million for the quarter ended June 30, 2024. The Bank’s net interest margin declined compared to the linked second quarter due to lower acquisition accounting accretion income, increased levels of average borrowings, lower average loan yields, and higher interest bearing deposit costs.

The Bank recorded a credit loss expense totaling $1.6 million during the third quarter of 2024, compared to $63,000 recorded during the second quarter of 2024 and $6.7 million recorded for the third quarter of 2023. The Bank’s credit loss expense for the third quarter of 2024 was commensurate with robust organic loan growth during the quarter and continued to reflect strong and stable asset quality. Credit loss expense for the third quarter of 2023 included a $5.5 million credit loss recorded to establish the allowance for credit losses on the acquired Malvern loan portfolio.

In the third quarter of 2024, the Bank recorded non-interest income of $2.5 million, compared to $193,000 during the same period in 2023 and $689,000 in the second quarter of 2024. The increase in non-interest income was primarily related to approximately $1.1 million in one-time enhancement to the cash surrender value of BOLI that resulted from the aforementioned BOLI restructuring transaction during the quarter, as well as higher yields earned on the new BOLI policies purchased during the quarter. Additionally, the Bank recorded $135,000 in net gains on the sale of loans during third quarter 2024, compared to net losses on the sale of loans totaling $900,000 and $704,000 in the linked and prior year quarters, respectively. This was partially offset by $555,000 in net losses on the sale of investment securities during third quarter 2024, while no investment securities sales were executed in the linked quarter, and $527,000 in net losses were recognized during the third quarter of 2023.

Non-interest expense for the third quarter of 2024 was $18.6 million, a decrease of $4.8 million, or 20.6%, compared to $23.4 million for the prior year quarter. Lower non-interest expense was largely due to $7.0 million in merger-related expenses recorded during the third quarter of 2023. Excluding merger-related expenses, non-interest expense grew $2.2 million, or 13.3%, including an increase of $849,000 in salaries and employee benefits due to merit increases and a larger employee base. Other real estate owned (OREO) expense totaled $662,000 during third quarter 2024, with no similar expense recorded in third quarter 2023. The increase reflects a $363,000 impairment of an OREO asset along with other legal and real estate tax expenses recorded during the quarter. Additionally, other professional fees increased $312,000 primarily related to increases in personnel placement costs, consulting fees, and tax services.

On a linked quarter basis, non-interest expense increased $691,000, or 3.8%, from $18.0 million for the second quarter of 2024. The largest impact on expenses compared to the linked quarter is the aforementioned $363,000 OREO impairment expense during third quarter 2024. Salaries and employee benefits expense increased by $207,000 primarily due to a larger employee base. These were partially offset by modest decreases in marketing and advertising costs, as well as travel and entertainment expenses.

Income tax expense for the three months ended September 30, 2024 was $4.2 million with an effective tax rate of 33.9%, compared to an income tax benefit of $78,000 for the third quarter of 2023 and an income tax expense of $2.1 million with an effective tax rate of 16.2% for the second quarter of 2024. The effective tax rate for the third quarter of 2024 included approximately $1.2 million of tax expense recorded related to the BOLI restructuring. Excluding this impact, the effective tax rate would have been approximately 24% for the third quarter of 2024. The effective tax rate for the second quarter of 2024 was lower compared to the first quarter due to the recently enacted New Jersey Corporate Transit Fee, which resulted in a change in tax rate and a revaluation of the Bank’s deferred tax assets. A tax benefit of $1.1 million was booked as a discrete item in the second quarter for this change in tax rate. With the expected negative ongoing impact of the New Jersey Corporate Transit Fee, we anticipate our future effective tax rate will range between 24% and 25%.

Balance Sheet

Total assets increased $148.3 million, or 4.1%, from December 31, 2023 to September 30, 2024. Total loans increased $66.0 million, or 2.2%, from December 31, 2023 to September 30, 2024. Growth totaling $116.3 million across the owner-occupied commercial real estate and commercial and industrial loan portfolios was partially offset by a decline of commercial investor real estate loans totaling $47.8 million, including multi-family and construction and development, during the first nine months of 2024. The Bank continues to prioritize relationship-based commercial and industrial lending while actively managing our exposure in investor real estate lending.

Total assets grew $141.9 million, or 15.6% annualized, during the quarter ended September 30, 2024. Growth included an increase of $71.5 million in cash and cash equivalents related to the opportunistic addition of FHLB advances when interest rates declined during the quarter. Total loans increased by $89.5 million, or 11.9%, annualized, during the quarter ended September 30, 2024. Growth across the owner-occupied commercial real estate and commercial and industrial loan portfolios totaled $56.9 million, while commercial investor real estate loans, including multi-family and construction and development, grew $27.5 million, and consumer and residential real estate loans grew $5.2 million.

Total deposits increased by $82.4 million, or 11.1% annualized, during the quarter ended September 30, 2024. Growth occurred across all categories, with non-interest bearing demand, interest bearing demand, money market and savings, and time deposits increasing $19.3 million, $23.3 million, $36.3 million, and $3.6 million, respectively, from the second quarter of 2024. Our team continued to focus on attracting new deposit relationships while maintaining existing core balances.

Nearly all of the Bank’s deposit growth for the first nine months of 2024 occurred during the quarter ended September 30, 2024. We also experienced a slight shift in the mix of customer balances over the nine-month period. The Bank grew non-interest bearing demand deposits by $17.3 million in a challenging interest rate environment, while total interest-bearing deposits experienced a shift toward higher-costing deposits. During the first nine months of 2024, increases in money market and savings deposits and time deposits totaled $64.2 million and $32.3 million, respectively, partially offset by a decline in interest bearing demand deposits totaling $31.3 million.

During the nine months ended September 30, 2024, stockholders’ equity increased by $31.2 million, primarily due to net income, partially offset by dividends.

As of September 30, 2024, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.53%, a Tier 1 Risk-Based capital ratio of 9.65%, a Common Equity Tier 1 Capital ratio of 9.65%, and a Total Risk-Based capital ratio of 11.55%. The tangible stockholders’ equity to tangible assets ratio^[IV] increased to 9.41% as of September 30, 2024 compared to 8.89% at December 31, 2023.

Asset Quality

First Bank’s asset quality metrics for the third quarter of 2024 remained favorable. Total nonperforming loans declined from $25.0 million at December 31, 2023 to $12.0 million at September 30, 2024, while total nonperforming assets declined from $25.0 million to $17.7 million during the same period.

The Bank recorded net charge-offs of $386,000 during the third quarter of 2024, compared to net charge-offs of $175,000 during the second quarter of 2024 and net charge-offs of $1.1 million in the third quarter of 2023. The allowance for credit losses on loans as a percentage of total loans measured 1.21% at September 30, 2024, compared to 1.21% at June 30, 2024 and 1.40% at December 31, 2023. The decline from December 31, 2023 to September 30, 2024 reflected the $5.5 million charge-off and elimination of the Bank’s reserves on a purchase credit deteriorated loan transferred to OREO during the first quarter of 2024.

Liquidity and Borrowings

The Bank increased its liquidity position in the third quarter of 2024. Total cash and cash equivalents increased by $71.5 million to $312.3 million at September 30, 2024. Borrowings increased by $49.9 million compared to June 30, 2024, as the Bank increased its FHLB borrowings.

Management believes the Bank’s current liquidity position, coupled with our various contingent funding sources, provides us with a strong liquidity base and a diverse source of funding options.

Cash Dividend Declared

On October 15, 2024, the Bank’s Board of Directors declared a quarterly cash dividend of $0.06 per share to common stockholders of record at the close of business on November 8, 2024, payable on November 22, 2024.

Share Repurchase Program

The Board of Directors has authorized and the Bank has received regulatory approvals for a new share repurchase program. The program provides for the repurchase of up to 1.0 million shares of First Bank common stock for an aggregate repurchase amount of up to $16.0 million. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time on the open market or in privately negotiated transactions. The stock repurchase program does not require First Bank to repurchase any specific number of shares, and First Bank may terminate the repurchase program at any time. The share repurchase program will expire on September 30, 2025.

Conference Call and Earnings Release Supplement

Additional details on the quarterly results and the Bank are included in the attached earnings release supplement. http://ml.globenewswire.com/Resource/Download/8c344bfa-6975-4f79-872b-2307433b1520

First Bank will host its earnings call on Thursday, October 24, 2024 at 9:00 AM Eastern Time. The direct dial toll free number for the live call is 1-800-715-9871 and the access code is 1578641. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 8550862) from one hour after the end of the conference call until January 22, 2025. Replay information will also be available on First Bank’s website at www.firstbanknj.com under the “About Us” tab. Click on “Investor Relations” to access the replay of the conference call.

About First Bank

First Bank is a New Jersey state-chartered bank with 26 full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington (2), Hamilton, Lawrence, Monroe, Morristown, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Coventry, Devon, Doylestown, Glenn Mills, Lionville, Malvern, Paoli, Trevose, Warminster and West Chester, Pennsylvania; and Palm Beach, Florida. With $3.76 billion in assets as of September 30, 2024, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank’s common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”

Forward Looking Statements

This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: changes in market interest rates on funding costs, yield on interest earning assets, credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank’s investment securities portfolio; whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, integrate acquired entities and realize anticipated efficiencies, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions in early 2023); the impact of public health emergencies, such as COVID-19, on First Bank, its operations and its customers and employees; an increase in unemployment levels and slowdowns in economic growth; First Bank’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank’s operations, including changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank’s ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.

_____________

ⁱ Return on average tangible equity is a non-U.S. GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱ Tangible book value per share is a non-U.S. GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱⁱ The efficiency ratio is a non-U.S. GAAP financial measure and is calculated by dividing non-interest expense less merger-related expenses by adjusted total revenue (net interest income plus non-interest income). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

^iv Tangible stockholders’ equity to tangible assets ratio is a non-U.S. GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus goodwill and other intangible assets). For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

FIRST BANK
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data, unaudited)

	September 30, 2024			December 31, 2023
Assets
Cash and due from banks	$	35,456		$	25,652
Restricted cash		9,200			13,770
Interest bearing deposits with banks		267,643			188,529
Cash and cash equivalents		312,299			227,951
Interest bearing time deposits with banks		743			996
Investment securities available for sale, at fair value		74,549			94,142
Investment securities held to maturity, net of allowance for credit losses of $206 at September 30, 2024 and $200 at December 31, 2023 (fair value of $39,049 and $38,486 at September 30, 2024 and December 31, 2023, respectively)		43,659			44,059
Equity securities, at fair value		1,860			1,888
Restricted investment in bank stocks		13,845			10,469
Other investments		11,141			9,841
Loans, net of deferred fees and costs		3,087,488			3,021,501
Less: Allowance for credit losses		(37,434	)		(42,397	)
Net loans		3,050,054			2,979,104
Premises and equipment, net		20,331			21,627
Other real estate owned, net		5,637			–
Accrued interest receivable		13,502			14,763
Bank-owned life insurance		84,727			86,435
Goodwill		44,166			44,166
Other intangible assets, net		9,318			10,812
Deferred income taxes, net		31,448			30,875
Other assets		40,374			32,199
Total assets	$	3,757,653		$	3,609,327

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	519,079		$	501,763
Interest bearing deposits		2,530,991			2,465,806
Total deposits		3,050,070			2,967,569
Borrowings		236,999			179,140
Subordinated debentures		29,926			55,261
Accrued interest payable		5,078			2,813
Other liabilities		33,510			33,644
Total liabilities		3,355,583			3,238,427
Stockholders’ Equity:
Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding		–			–
Common stock, par value $5 per share; 40,000,000 shares authorized; 27,367,984 shares issued and 25,186,920 shares outstanding at September 30, 2024 and 27,149,186 shares issued and 24,968,122 shares outstanding at December 31, 2023		135,415			134,552
Additional paid-in capital		124,014			122,881
Retained earnings		167,792			140,563
Accumulated other comprehensive loss		(3,773	)		(5,718	)
Treasury stock, 2,181,064 shares at September 30, 2024 and December 31, 2023		(21,378	)		(21,378	)
Total stockholders’ equity		402,070			370,900
Total liabilities and stockholders’ equity	$	3,757,653		$	3,609,327

FIRST BANK
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except for share data, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
Interest and Dividend Income
Investment securities—taxable	$	1,201		$	1,151		$	3,661		$	3,128
Investment securities—tax-exempt		35			86			109			158
Interest bearing deposits with banks, Federal funds sold and other		3,972			2,593			10,479			6,029
Loans, including fees		50,957			46,088			151,039			111,536
Total interest and dividend income		56,165			49,918			165,288			120,851

Interest Expense
Deposits		23,081			18,470			66,253			40,574
Borrowings		2,550			1,914			6,859			4,939
Subordinated debentures		440			940			1,224			1,821
Total interest expense		26,071			21,324			74,336			47,334
Net interest income		30,094			28,594			90,952			73,517
Credit loss expense		1,579			6,650			944			8,237
Net interest income after credit loss expense		28,515			21,944			90,008			65,280

Non-Interest Income
Service fees on deposit accounts		362			280			1,056			741
Loan fees		218			152			437			259
Income from bank-owned life insurance		1,819			544			3,213			1,291
Losses on sale of investment securities, net		(555	)		(527	)		(555	)		(734	)
Gains (losses) on sale of loans, net		135			(704	)		(536	)		(393	)
Gains on recovery of acquired loans		35			24			209			95
Other non-interest income		465			424			1,308			1,026
Total non-interest income		2,479			193			5,132			2,285

Non-Interest Expense
Salaries and employee benefits		10,175			9,326			30,181			25,320
Occupancy and equipment		2,080			1,915			6,188			5,107
Legal fees		245			270			801			671
Other professional fees		943			631			2,628			1,880
Regulatory fees		728			595			1,970			1,345
Directors’ fees		272			224			784			631
Data processing		800			907			2,355			2,206
Marketing and advertising		310			220			983			693
Travel and entertainment		233			140			762			519
Insurance		245			272			740			624
Other real estate owned expense, net		662			–			879			38
Merger-related expenses		–			7,028			–			7,710
Other expense		1,951			1,958			6,136			4,020
Total non-interest expense		18,644			23,486			54,407			50,764
Income Before Income Taxes		12,350			(1,349	)		40,733			16,801
Income tax expense		4,188			(78	)		8,986			4,284
Net Income (loss)	$	8,162		$	(1,271	)	$	31,747		$	12,517

Basic earnings (loss) per common share	$	0.32		$	(0.05	)	$	1.26		$	0.60
Diluted earnings (loss) per common share	$	0.32		$	(0.05	)	$	1.26		$	0.59

Basic weighted average common shares outstanding		25,172,927			23,902,478			25,114,685			20,928,847
Diluted weighted average common shares outstanding		25,342,462			23,902,478			25,265,250			21,057,655

FIRST BANK
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)

	Three Months Ended September 30,
	2024								2023
	Average						Average		Average						Average
	Balance			Interest			Rate⁽⁵⁾		Balance			Interest			Rate⁽⁵⁾
Interest earning assets
Investment securities ^{(1) (2)}	$	137,216		$	1,244		3.61	%	$	169,244		$	1,255			2.94	%
Loans ⁽³⁾		3,010,116			50,957		6.73	%		3,003,703			46,088			6.09	%
Interest bearing deposits with banks,
Federal funds sold and other		265,474			3,593		5.38	%		182,128			2,395			5.22	%
Restricted investment in bank stocks		12,768			257		8.01	%		10,284			196			7.56	%
Other investments		12,776			122		3.80	%		9,162			2			0.09	%
Total interest earning assets ⁽²⁾		3,438,350			56,173		6.50	%		3,374,521			49,936			5.87	%
Allowance for credit losses		(36,612	)							(41,216	)
Non-interest earning assets		271,105								232,045
Total assets	$	3,672,843							$	3,565,350

Interest bearing liabilities
Interest bearing demand deposits	$	587,045		$	3,974		2.69	%	$	674,417		$	4,038			2.38	%
Money market deposits		1,064,045			10,573		3.95	%		952,042			8,386			3.49	%
Savings deposits		149,057			563		1.50	%		174,412			490			1.11	%
Time deposits		690,723			7,902		4.55	%		655,288			5,556			3.36	%
Total interest bearing deposits		2,490,870			23,012		3.68	%		2,456,159			18,470			2.98	%
Borrowings		206,588			2,550		4.91	%		163,746			1,914			4.64	%
Subordinated debentures		29,908			440		5.88	%		51,101			940			7.36	%
Total interest bearing liabilities		2,727,366			26,002		3.79	%		2,671,006			21,324			3.17	%
Non-interest bearing deposits		506,084								507,866
Other liabilities		40,858								33,106
Stockholders’ equity		398,535								353,372
Total liabilities and stockholders’ equity	$	3,672,843							$	3,565,350
Net interest income/interest rate spread ⁽²⁾					30,171		2.71	%					28,612			2.70	%
Net interest margin ^{(2) (4)}							3.49	%								3.36	%
Tax equivalent adjustment ⁽²⁾					(8	)							(18	)
Net interest income				$	30,163							$	28,594

(1) Average balance of investment securities available for sale is based on amortized cost.
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
(3) Average balances of loans include loans on nonaccrual status.
(4) Net interest income divided by average total interest earning assets.
(5) Annualized.

FIRST BANK
AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
(dollars in thousands, unaudited)

	Nine Months Ended September 30,
	2024								2023
	Average						Average		Average						Average
	Balance			Interest			Rate⁽⁵⁾		Balance			Interest			Rate⁽⁵⁾
Interest earning assets
Investment securities ^{(1) (2)}	$	143,528		$	3,793		3.53	%	$	155,128		$	3,319		2.86	%
Loans ⁽³⁾		2,995,895			151,039		6.73	%		2,590,409			111,536		5.76	%
Interest bearing deposits with banks,
Federal funds sold and other		231,171			9,404		5.43	%		143,922			5,403		5.02	%
Restricted investment in bank stocks		11,461			699		8.15	%		9,327			454		6.51	%
Other investments		12,262			376		4.10	%		8,902			172		2.58	%
Total interest earning assets ⁽²⁾		3,394,317			165,311		6.51	%		2,907,688			120,884		5.56	%
Allowance for credit losses		(37,000	)							(33,664	)
Non-interest earning assets		265,368								174,246
Total assets	$	3,622,685							$	3,048,270

Interest bearing liabilities
Interest bearing demand deposits	$	599,025		$	11,453		2.55	%	$	445,318		$	6,492		1.95	%
Money market deposits		1,046,911			30,921		3.95	%		840,688			20,177		3.21	%
Savings deposits		156,416			1,756		1.50	%		155,370			1,202		1.03	%
Time deposits		680,194			22,054		4.33	%		586,827			12,703		2.89	%
Total interest bearing deposits		2,482,546			66,184		3.56	%		2,028,203			40,574		2.67	%
Borrowings		181,844			6,859		5.04	%		149,042			4,939		4.43	%
Subordinated debentures		34,071			1,224		4.79	%		36,949			1,821		6.57	%
Total interest bearing liabilities		2,698,461			74,267		3.68	%		2,214,194			47,334		2.86	%
Non-interest bearing deposits		494,971								490,211
Other liabilities		41,971								29,939
Stockholders’ equity		387,282								313,926
Total liabilities and stockholders’ equity	$	3,622,685							$	3,048,270
Net interest income/interest rate spread ⁽²⁾					91,044		2.83	%					73,550		2.70	%
Net interest margin ^{(2) (4)}							3.58	%							3.38	%
Tax equivalent adjustment ⁽²⁾					(23	)							(33	)
Net interest income				$	91,021							$	73,517

(1) Average balance of investment securities available for sale is based on amortized cost.
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
(3) Average balances of loans include loans on nonaccrual status.
(4) Net interest income divided by average total interest earning assets.
(5) Annualized.

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(in thousands, except for share and employee data, unaudited)

	As of or For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
EARNINGS
Net interest income	$	30,094		$	30,540		$	30,318		$	30,999		$	28,594
Credit loss (benefit) expense		1,579			63			(698	)		(294	)		6,650
Non-interest income		2,479			689			1,964			(3,000	)		193
Non-interest expense		18,644			17,953			17,810			17,936			23,486
Income tax expense		4,188			2,140			2,658			1,977			(78	)
Net income		8,162			11,073			12,512			8,380			(1,271	)

PERFORMANCE RATIOS
Return on average assets ⁽¹⁾		0.88	%		1.23	%		1.41	%		0.93	%		(0.14	%)
Adjusted return on average assets ^{(1) (2)}		0.93	%		1.31	%		1.39	%		1.38	%		1.07	%
Return on average equity ⁽¹⁾		8.15	%		11.52	%		13.36	%		9.06	%		(1.43	%)
Adjusted return on average equity ^{(1) (2)}		8.56	%		12.26	%		13.17	%		13.38	%		10.75	%
Return on average tangible equity ^{(1) (2)}		9.42	%		13.40	%		15.64	%		10.67	%		(1.66	%)
Adjusted return on average tangible equity ^{(1) (2)}		9.89	%		14.26	%		15.41	%		15.75	%		12.50	%
Net interest margin ^{(1) (3)}		3.49	%		3.62	%		3.64	%		3.68	%		3.36	%
Yield on loans ⁽¹⁾		6.73	%		6.81	%		6.66	%		6.49	%		6.09	%
Total cost of deposits ⁽¹⁾		3.05	%		3.01	%		2.83	%		2.63	%		2.47	%
Efficiency ratio ⁽²⁾		58.49	%		55.88	%		55.56	%		53.79	%		54.83	%

SHARE DATA
Common shares outstanding		25,186,920			25,144,983			25,096,449			24,968,122			24,926,919
Basic earnings per share	$	0.32		$	0.44		$	0.50		$	0.34		$	(0.05	)
Diluted earnings per share		0.32			0.44			0.50			0.33			(0.05	)
Adjusted diluted earnings per share ⁽²⁾		0.34			0.47			0.49			0.49			0.40
Book value per share		15.96			15.61			15.23			14.85			14.48
Tangible book value per share ⁽²⁾		13.84			13.46			13.06			12.65			12.26

MARKET DATA
Market value per share	$	15.20		$	12.74		$	13.74		$	14.70		$	10.78
Market value / Tangible book value		109.83	%		94.65	%		105.20	%		116.18	%		87.96	%
Market capitalization	$	382,841		$	320,347		$	344,825		$	367,031		$	268,712

CAPITAL & LIQUIDITY
Stockholders’ equity / assets		10.70	%		10.86	%		10.64	%		10.28	%		10.15	%
Tangible stockholders’ equity / tangible assets ⁽²⁾		9.41	%		9.50	%		9.27	%		8.89	%		8.72	%
Loans / deposits		101.23	%		101.02	%		100.75	%		101.82	%		101.80	%

ASSET QUALITY
Net charge-offs	$	386		$	175		$	5,293		$	209		$	1,122
Net charge-offs (recoveries), excluding PCD loan charge-off ⁽⁴⁾		386			175			(201	)		209			1,122
Nonperforming loans		12,014			14,227			17,054			24,989			24,158
Nonperforming assets		17,651			20,226			23,053			24,989			24,158
Net charge offs / average loans ⁽¹⁾		0.05	%		0.02	%		0.72	%		0.03	%		0.15	%
Net charge offs (recoveries), excluding PCD loan charge-off / average loans ^{(1) (4)}		0.05	%		0.02	%		(0.03	%)		0.03	%		0.15	%
Nonperforming loans / total loans		0.39	%		0.47	%		0.57	%		0.83	%		0.80	%
Nonperforming assets / total assets		0.47	%		0.56	%		0.64	%		0.69	%		0.68	%
Allowance for credit losses on loans / total loans		1.21	%		1.21	%		1.22	%		1.40	%		1.42	%
Allowance for credit losses on loans / nonperforming loans		311.59	%		254.81	%		213.42	%		169.66	%		177.50	%

OTHER DATA
Total assets	$	3,757,653		$	3,615,731		$	3,591,398		$	3,609,327		$	3,558,426
Total loans		3,087,488			2,998,029			2,992,423			3,021,501			3,020,778
Total deposits		3,050,070			2,967,634			2,970,262			2,967,569			2,967,455
Total stockholders’ equity		402,070			392,489			382,254			370,900			361,037
Number of full-time equivalent employees		313			294			288			286			286

(1) Annualized.
(2) Non-U.S. GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, “Non-U.S. GAAP Financial Measures,” for calculation and reconciliation.
(3) Tax equivalent using a federal income tax rate of 21%.
(4) Excludes $5.5 million in a PCD loan charge-off in first quarter of 2024, which was reserved for through purchase accounting marks at the time of the Malvern acquisition.

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)

	As of the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
LOAN COMPOSITION
Commercial and industrial	$	546,541		$	530,996		$	508,911		$	506,849		$	478,120
Commercial real estate:
Owner-occupied		688,988			647,625			625,643			612,352			607,888
Investor		1,170,508			1,143,954			1,172,311			1,221,702			1,269,134
Construction and development		193,460			190,108			184,816			186,829			168,192
Multi-family		267,861			270,238			279,668			271,058			275,825
Total commercial real estate		2,320,817			2,251,925			2,262,438			2,291,941			2,321,039
Residential real estate:
Residential mortgage and first lien home equity loans		143,953			144,978			154,704			156,024			158,487
Home equity–second lien loans and revolving lines of credit		49,891			46,882			45,869			44,698			46,239
Total residential real estate		193,844			191,860			200,573			200,722			204,726
Consumer and other		29,518			26,321			23,702			25,343			20,208
Total loans prior to deferred loan fees and costs		3,090,720			3,001,102			2,995,624			3,024,855			3,024,093
Net deferred loan fees and costs		(3,232	)		(3,073	)		(3,201	)		(3,354	)		(3,315	)
Total loans	$	3,087,488		$	2,998,029		$	2,992,423		$	3,021,501		$	3,020,778

LOAN MIX
Commercial and industrial		17.7	%		17.7	%		17.0	%		16.8	%		15.8	%
Commercial real estate:
Owner-occupied		22.3	%		21.6	%		20.9	%		20.3	%		20.1	%
Investor		37.9	%		38.2	%		39.2	%		40.4	%		42.0	%
Construction and development		6.3	%		6.3	%		6.2	%		6.2	%		5.6	%
Multi-family		8.7	%		9.0	%		9.3	%		9.0	%		9.1	%
Total commercial real estate		75.2	%		75.1	%		75.6	%		75.9	%		76.8	%
Residential real estate:
Residential mortgage and first lien home equity loans		4.7	%		4.8	%		5.2	%		5.1	%		5.3	%
Home equity–second lien loans and revolving lines of credit		1.6	%		1.6	%		1.5	%		1.5	%		1.5	%
Total residential real estate		6.3	%		6.4	%		6.7	%		6.6	%		6.8	%
Consumer and other		0.9	%		0.9	%		0.8	%		0.8	%		0.7	%
Net deferred loan fees and costs		(0.1	%)		(0.1	%)		(0.1	%)		(0.1	%)		(0.1	%)
Total loans		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

FIRST BANK
QUARTERLY FINANCIAL HIGHLIGHTS
(dollars in thousands, unaudited)

	As of the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
DEPOSIT COMPOSITION
Non-interest bearing demand deposits	$	519,079		$	499,765		$	470,749		$	501,763		$	493,703
Interest bearing demand deposits		597,802			574,515			580,864			629,110			623,338
Money market and savings deposits		1,235,637			1,199,382			1,219,634			1,171,440			1,228,832
Time deposits		697,552			693,972			699,015			665,256			621,582
Total Deposits	$	3,050,070		$	2,967,634		$	2,970,262		$	2,967,569		$	2,967,455

DEPOSIT MIX
Non-interest bearing demand deposits		17.0	%		16.8	%		15.8	%		16.9	%		16.6	%
Interest bearing demand deposits		19.6	%		19.4	%		19.6	%		21.2	%		21.0	%
Money market and savings deposits		40.5	%		40.4	%		41.1	%		39.5	%		41.4	%
Time deposits		22.9	%		23.4	%		23.5	%		22.4	%		21.0	%
Total Deposits		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

FIRST BANK
NON-U.S. GAAP FINANCIAL MEASURES
(in thousands, except for share data, unaudited)

	As of or For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Return on Average Tangible Equity
Net income (numerator)	$	8,162		$	11,073		$	12,512		$	8,380		$	(1,271	)

Average stockholders’ equity	$	398,535		$	386,644		$	376,542		$	366,950		$	353,372
Less: Average Goodwill and other intangible assets, net		53,823			54,347			54,790			55,324			49,491
Average Tangible stockholders’ equity (denominator)	$	344,712		$	332,297		$	321,752		$	311,626		$	303,881

Return on Average Tangible equity (1)		9.42	%		13.40	%		15.64	%		10.67	%		-1.66	%

Tangible Book Value Per Share
Stockholders’ equity	$	402,070		$	392,489		$	382,254		$	370,900		$	361,037
Less: Goodwill and other intangible assets, net		53,484			54,026			54,483			54,978			55,554
Tangible stockholders’ equity (numerator)	$	348,586		$	338,463		$	327,771		$	315,922		$	305,483

Common shares outstanding (denominator)		25,186,920			25,144,983			25,096,449			24,968,122			24,926,919

Tangible book value per share	$	13.84		$	13.46		$	13.06		$	12.65		$	12.26

Tangible Equity / Tangible Assets
Stockholders’ equity	$	402,070		$	392,489		$	382,254		$	370,900		$	361,037
Less: Goodwill and other intangible assets, net		53,484			54,026			54,483			54,978			55,554
Tangible stockholders’ equity (numerator)	$	348,586		$	338,463		$	327,771		$	315,922		$	305,483

Total assets	$	3,757,653		$	3,615,731		$	3,591,398		$	3,609,327		$	3,558,426
Less: Goodwill and other intangible assets, net		53,484			54,026			54,483			54,978			55,554
Tangible total assets (denominator)	$	3,704,169		$	3,561,705		$	3,536,915		$	3,554,349		$	3,502,872

Tangible stockholders’ equity / tangible assets		9.41	%		9.50	%		9.27	%		8.89	%		8.72	%

Efficiency Ratio
Non-interest expense	$	18,644		$	17,953		$	17,810		$	17,936		$	23,486
Less: Merger-related expenses		–			–			–			338			7,028
Adjusted non-interest expense (numerator)	$	18,644		$	17,953		$	17,810		$	17,598		$	16,458

Net interest income	$	30,094		$	30,540		$	30,318		$	30,999		$	28,594
Non-interest income		2,479			689			1,964			(3,000	)		193
Total revenue		32,573			31,229			32,282			27,999			28,787
Add: Losses on sale of investment securities, net		555			–			–			916			527
(Subtract) Add: (Gains) losses on sale of loans, net		(135	)		900			(229	)		3,799			704
Less: Bank Owned Life Insurance Enhancement		(1,116	)		–			–			–			–
Adjusted total revenue (denominator)	$	31,877		$	32,129		$	32,053		$	32,714		$	30,018

Efficiency ratio		58.49	%		55.88	%		55.56	%		53.79	%		54.83	%

(1) Annualized.

FIRST BANK
NON-U.S. GAAP FINANCIAL MEASURES
(dollars in thousands, except for share data, unaudited)

	For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023

Adjusted diluted earnings per share,
Adjusted return on average assets, and
Adjusted return on average equity

Net income	$	8,162		$	11,073		$	12,512		$	8,380		$	(1,271	)
Add: Merger-related expenses⁽¹⁾		–			–			–			267			5,552
Add: Credit loss expense on acquired loan portfolio⁽¹⁾		–			–			–			–			4,323
Add (subtract): Losses (gains) on sale of loans, net⁽¹⁾		(107	)		711			(181	)		3,001			556
Add: Losses on sale of investment securities, net⁽¹⁾		438			–			–			724			416
Add: Net Impact of Bank Owned Life Insurance Restructuring⁽²⁾		79			–			–			–			–
Adjusted net income	$	8,572		$	11,784		$	12,331		$	12,372		$	9,576

Diluted weighted average common shares outstanding		25,342,462			25,258,785			25,199,381			25,089,495			24,029,910
Average assets	$	3,672,843		$	3,618,912		$	3,575,748		$	3,561,261		$	3,565,350
Average equity	$	398,535		$	386,644		$	376,542		$	366,950		$	353,372
Average Tangible Equity	$	344,712		$	332,297		$	321,752		$	311,626		$	303,881

Adjusted diluted earnings per share	$	0.34		$	0.47		$	0.49		$	0.49		$	0.40
Adjusted return on average assets⁽³⁾		0.93	%		1.31	%		1.39	%		1.38	%		1.07	%
Adjusted return on average equity⁽³⁾		8.56	%		12.26	%		13.17	%		13.38	%		10.75	%
Adjusted return on average tangible equity⁽³⁾		9.89	%		14.26	%		15.41	%		15.75	%		12.50	%

(1) Items are tax-effected using a federal income tax rate of 21%.
(2) Includes the net impact of the new Bank Owned Life Insurance enhancement and the increased tax expense on the terminated policies.
(3) Annualized.

The MIL Network –

January 25, 2025

MIL-OSI: STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates the Merger of Atlantic Union Bankshares Corp. – AUB

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Atlantic Union Bankshares Corp. (NYSE: AUB), relating to a proposed merger with Sandy Spring Bancorp, Inc. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 shares of AUB, and cash in lieu of fractional shares.

Click here for more information https://monteverdelaw.com/case/atlantic-union-bankshares-corp/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?
When was the last time you recovered money for shareholders?
What cases did you recover money in and how much?

About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court.

No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
jmonteverde@monteverdelaw.com
Tel: (212) 971-1341

Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

The MIL Network –

January 25, 2025

MIL-OSI: Lake Shore Bancorp, Inc. Announces Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

DUNKIRK, N.Y., Oct. 23, 2024 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), reported unaudited net income of $1.3 million, or $0.24 per diluted share, for the third quarter of 2024 compared to net income of $1.1 million, or $0.19 per diluted share, for the second quarter of 2024, and $1.6 million, or $0.27 per diluted share, for the third quarter of 2023. The increase in net income during the third quarter of 2024 was primarily driven by an increase in net interest income and a reduction in non-interest expenses when compared to the previous quarter. For the first nine months of 2024, the Company reported unaudited net income of $3.5 million, or $0.62 per diluted share, as compared to $4.1 million, or $0.69 per diluted share, for the first nine months of 2023. During the first nine months of 2024, the Company repaid Federal Home Loan Bank of New York (“FHLBNY”) borrowings of $25.0 million and did not renew $16.0 million of brokered certificates of deposit (“CDs”) while growing organic deposits by 2.2%.

“I am pleased to report a solid quarter of financial results, marked by quarterly earnings growth and an uptick in the net interest margin for the first time in well over a year,” stated Kim C. Liddell, President, CEO, and Director. “These earnings reflect the Company’s ongoing focus on managing its financial performance amid challenging market conditions.”

Third Quarter 2024 and Year-to-Date Financial Highlights:

Net income increased to $1.3 million during the third quarter of 2024, an increase of $216,000, or 19.4%, when compared to the second quarter of 2024. Net income was positively impacted by an increase in net interest income of $177,000, or 3.4%, and a decrease in non-interest expenses of $84,000, or 1.7%;
Net interest margin increased to 3.28% during the third quarter of 2024, an increase of 14 basis points when compared to a net interest margin of 3.14% during the second quarter of 2024;
Efficiency ratio improved to 77.96% for the third quarter of 2024 when compared to 82.39% for the second quarter of 2024;
Did not renew $16.0 million of brokered CDs and $25.0 million of FHLBNY borrowings through organic deposit growth of 2.2% during the first nine months of 2024;
At September 30, 2024 and December 31, 2023, the Company’s percentage of uninsured deposits to total deposits was 13.4% and 12.8%, respectively; and
The Bank’s capital position remains “well capitalized” with a Tier 1 Leverage ratio of 13.37% and a Total Risk-Based capital ratio of 18.85% at September 30, 2024.

Net Interest Income

Net interest income for the third quarter of 2024 increased $177,000, or 3.4%, to $5.4 million as compared to $5.2 million for the second quarter of 2024 and decreased $912,000, or 14.5%, as compared to $6.3 million for the third quarter of 2023. Net interest margin and interest rate spread were 3.28% and 2.67%, respectively, for the third quarter of 2024 as compared to 3.14% and 2.56%, respectively, for the second quarter of 2024 and 3.74% and 3.32%, respectively, for the third quarter of 2023.

Net interest income for the first nine months of 2024 decreased $3.1 million, or 16.4%, to $15.7 million as compared to $18.8 million for the first nine months of 2023. Net interest margin and interest rate spread were 3.17% and 2.59%, respectively, for the first nine months of 2024 as compared to 3.72% and 3.36%, respectively, for the first nine months of 2023.

Interest income for the third quarter of 2024 was $8.9 million, an increase of $97,000, or 1.1%, compared to $8.8 million for the second quarter of 2024, and an increase of $130,000, or 1.5%, compared to $8.7 million for the third quarter of 2023. The increase from the prior quarter was primarily due to an 11 basis points increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $6.0 million, or 0.9%. The increase from the prior year quarter was primarily due to a 21 basis points increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $16.7 million, or 2.5%.

Interest income for the first nine months of 2024 was $26.2 million, an increase of $1.1 million, or 4.3%, compared to $25.1 million for the first nine months of 2023. The increase was primarily due to a 32 basis point increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $14.0 million, or 2.1%.

Interest expense for the third quarter of 2024 was $3.5 million, a decrease of $80,000, or 2.3%, from the second quarter of 2024, and an increase of $1.0 million, or 43.0%, from $2.4 million for the third quarter of 2023.

The decrease in interest expense when compared to the previous quarter was primarily due to a decrease in the average balance of interest-bearing liabilities of $12.0 million, or 2.3%. During the third quarter of 2024, there was a $52,000 decrease in interest expense on total deposit accounts when compared to the second quarter of 2024, due to a decrease in the average balance of total deposit accounts of $7.2 million, or 1.4% and a one basis point decrease in the average interest rate paid on total deposits. Additionally, interest expense on borrowed funds and other interest-bearing liabilities decreased by $28,000, or 15.8% during the third quarter of 2024 when compared to the second quarter of 2024, due to a decrease in the average balance of borrowed funds and other interest-bearing liabilities of $4.8 million, or 19.1%, as we reduced our FHLB borrowings.

The increase in interest expense when compared to the third quarter of 2023 was primarily due to an 86 basis points increase in the average interest rate paid on interest-bearing liabilities, partially offset by a decrease in the average balance of interest-bearing liabilities of $10.9 million, or 2.1%. During the third quarter of 2024, there was a $1.2 million increase in interest expense on total deposit accounts when compared to the third quarter of 2023 due to a 97 basis points increase in the average interest rate paid on total deposits along with an increase in average total deposit balances of $5.5 million, or 1.1%. The increase in the average interest rate paid on deposit accounts was primarily due to the increase in market interest rates and deposit competition. This increase was partially offset by a decrease in interest expense on borrowed funds and other interest-bearing liabilities of $173,000, or 53.7%, in the third quarter of 2024 when compared to the third quarter of 2023, primarily due to a $16.5 million decrease in the average balance of borrowed funds and other interest-bearing liabilities outstanding as we reduced our FHLBNY borrowings, and the average rate paid declined by 58 basis points.

Interest expense for the first nine months of 2024 was $10.5 million, an increase of $4.2 million, or 65.4%, from $6.3 million for the first nine months of 2023. The increase in interest expense was primarily due to a 109 basis points increase in average interest rate paid on interest-bearing liabilities, partially offset by a decrease in the average balance of interest-bearing liabilities of $8.0 million, or 1.5%. During the first nine months of 2024, there was a $4.6 million increase in interest expense on total deposit accounts when compared to the first nine months of 2023 due to a 122 basis points increase in the average interest rate paid on total deposits along with an increase in average total deposit balances of $6.3 million, or 1.3%. The increase in the average interest rate paid on deposit accounts was primarily due to the increase in market interest rates and deposit competition. This increase was partially offset by a decrease in interest expense on borrowed funds and other interest-bearing liabilities of $452,000, or 44.8%, during the first nine months of 2024 when compared to the first nine months of 2023, primarily due to a $14.4 million decrease in the average balance of borrowed funds and other interest-bearing liabilities outstanding along with a 45 basis points decrease in the average interest rate paid on borrowed funds and other interest bearing liabilities as we reduced our FHLBNY borrowings.

Non-Interest Income

Non-interest income was $791,000 for the third quarter of 2024, an increase of $53,000, or 7.2%, as compared to $738,000 for the second quarter of 2024, and an increase of $186,000, or 30.7%, as compared to $605,000 for the third quarter of 2023. The increase from the prior quarter was primarily due to a $67,000 increase in earnings on bank-owned life insurance during the third quarter of 2024 as the result of the recognition of a death benefit. The increase from the prior year quarter was primarily due to a $173,000 increase in earnings on bank-owned life insurance in connection with the restructuring of bank-owned life insurance during the fourth quarter of 2023 as well as an increase in service charges and fees of $28,000, or 10.9%.

Non-interest income was $2.2 million for the first nine months of 2024, an increase of $524,000, or 30.6%, as compared to the first nine months of 2023. The increase was primarily due to a $394,000 increase in earnings on bank-owned life insurance in connection with the restructuring of bank-owned life insurance during the fourth quarter of 2023 and the recognition of a death benefit in the third quarter of 2024, a favorable variance of $58,000 related to interest rate swaps during the first nine months of 2024 as a result of unwinding the swaps during 2023, and a $52,000 increase related to the loss on the sale of securities available for sale that occurred during the first nine months of 2023 as part of a balance sheet restructuring.

Non-Interest Expense

Non-interest expense was $4.8 million for the third quarter of 2024, a decrease of $84,000, or 1.7%, as compared to $4.9 million for the second quarter of 2024, and a decrease of $383,000, or 7.4%, as compared to $5.2 million for the third quarter of 2023.

The decrease from the prior quarter was primarily related to a decrease in FDIC insurance expense of $154,000, or 54.2% and a decrease in professional services expense of $36,000, or 9.1%. These decreases were partially offset by an increase in salaries and employee benefit costs and other expenses.

The decrease from the prior year quarter was primarily related to a decrease in FDIC insurance expense of $165,000, or 55.9%, and a decrease in advertising expense of $146,000, or 93.0%, as a result of a decrease in marketing spending. As a result of management’s efforts to rationalize staffing and optimize operating expenses, salaries and employee benefits decreased by $31,000, or 1.1%.

Non-interest expense was $14.7 million for the first nine months of 2024, a decrease of $1.9 million, or 11.5%, as compared to $16.6 million for the first nine months of 2023. The decrease related primarily to a decline in professional services expense of $1.0 million, or 48.0%, as a result of a decrease in the use of external consultants. Additionally, advertising costs decreased by $435,000, or 84.6%, due to a decrease in marketing spending, and FDIC insurance costs decreased by $133,000, or 16.1%. As a result of management’s efforts to rationalize staffing and optimize operating expenses, salaries and employee benefits decreased by $208,000, or 2.5% and occupancy and equipment expenses decreased by $148,000, or 6.7%. These decreases were partially offset by an increase in data processing costs of $51,000, or 4.0%.

Credit Quality

The Company’s allowance for credit losses on loans was $5.5 million at September 30, 2024 as compared to $6.5 million at December 31, 2023. The Company’s allowance for credit losses on unfunded commitments was $574,000 at September 30, 2024 as compared to $485,000 at December 31, 2023.

Non-performing assets as a percentage of total assets increased to 0.57% at September 30, 2024 as compared to 0.47% at December 31, 2023 as a result of a decrease in total assets of $27.5 million and an increase in non-performing assets of $628,000. The Company’s allowance for credit losses on loans as a percent of net loans was 1.01% at September 30, 2024 and 1.16% at December 31, 2023. The decline in the allowance for credit losses to net loans and the corresponding credit to the provision for credit losses recognized was primarily due to a decrease in the quantitative loss factors derived from historical loss rates calculated in the vintage model as well as a decrease in the qualitative loss factor derived from forecasting economic trends.

Balance Sheet Summary

Total assets at September 30, 2024 were $697.6 million, a $27.5 million decrease, or 3.8%, as compared to $725.1 million at December 31, 2023. Cash and cash equivalents decreased by $3.7 million, or 7.0%, from $53.7 million at December 31, 2023 to $50.0 million at September 30, 2024. The decrease was primarily due to the repayment of $25.0 million of FHLBNY borrowings and the nonrenewal of $16.0 million of brokered CDs, partially offset by organic deposit growth of $12.6 million, or 2.2%, and loan repayments, net of originations, of $16.8 million, or 3.0%. Securities available for sale were $58.8 million at September 30, 2024 as compared to $60.4 million at December 31, 2023. Loans receivable, net at September 30, 2024 and December 31, 2023 were $539.0 million and $555.8 million, respectively.

Total deposits, excluding brokered CDs, at September 30, 2024 were $587.6 million, an increase of $12.6 million, or 2.2%, compared to $574.9 million at December 31, 2023. Total deposits at September 30, 2024 were $587.6 million, a decrease of $3.4 million, or 0.6%, due to the nonrenewal of $16.0 million in brokered CDs, compared to $590.9 million at December 31, 2023. Total borrowings decreased to $10.3 million at September 30, 2024, a decrease of $25.0 million, or 70.9% as compared to $35.3 million as of December 31, 2023 as we reduced our FHLBNY borrowings.

Stockholders’ equity at September 30, 2024 was $89.9 million, a $3.6 million increase, or 4.2%, as compared to $86.3 million at December 31, 2023. The increase in stockholders’ equity was primarily attributed to $3.5 million in net income earned during the first nine months of 2024.

About Lake Shore

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

Safe-Harbor

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

Source: Lake Shore Bancorp, Inc.
Category: Financial

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

Selected Financial Condition Data	As of		As of
	September 30,		December 31,
	2024		2023
	(Unaudited)
	(Dollars in thousands)

Total assets	$	697,596	$	725,118
Cash and cash equivalents		49,981		53,730
Securities available for sale, at fair value		58,782		60,442
Loans receivable, net		539,005		555,828
Deposits		587,563		590,924
Long-term debt		10,250		35,250
Stockholders’ equity		89,877		86,273

Condensed Statements of Income
		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2024				2023				2024				2023
	(Unaudited)
	(Dollars in thousands, except per share amounts)

Interest income	$		8,851		$		8,721		$		26,215		$		25,142
Interest expense			3,468				2,426				10,492				6,342
Net interest income			5,383				6,295				15,723				18,800
(Credit) provision for credit losses			(229	)			(199	)			(866	)			(1,011	)
Net interest income after (credit) provision for credit losses			5,612				6,494				16,589				19,811
Total non-interest income			791				605				2,236				1,712
Total non-interest expense			4,813				5,196				14,706				16,614
Income before income taxes			1,590				1,903				4,119				4,909
Income tax expense			258				332				657				838
Net income	$		1,332		$		1,571		$		3,462		$		4,071
Basic and diluted earnings per share	$		0.24		$		0.27		$		0.62		$		0.69

	Three Months Ended							Three Months Ended
	September 30, 2024							September 30, 2023
	Average		Interest Income/		Yield/			Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾			Balance		Expense		Rate⁽²⁾
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits & federal funds sold	$	54,527	$	716		5.25	%	$	43,374	$	559		5.16	%
Securities⁽¹⁾		59,536		405		2.72	%		65,019		463		2.85	%
Loans, including fees		542,612		7,730		5.70	%		565,011		7,699		5.45	%
Total interest-earning assets		656,675		8,851		5.39	%		673,404		8,721		5.18	%
Other assets		48,797							45,506
Total assets	$	705,472						$	718,910

Interest-bearing liabilities
Demand & NOW accounts	$	66,739	$	15		0.09	%	$	76,171	$	19		0.10	%
Money market accounts		145,641		986		2.71	%		123,998		405		1.31	%
Savings accounts		57,772		10		0.07	%		69,327		13		0.08	%
Time deposits		219,166		2,308		4.21	%		214,282		1,667		3.11	%
Total deposits		489,318		3,319		2.71	%		483,778		2,104		1.74	%
Borrowed funds & other interest-bearing liabilities		20,479		149		2.91	%		36,953		322		3.49	%
Total interest-bearing liabilities		509,797		3,468		2.72	%		520,731		2,426		1.86	%
Other non-interest bearing liabilities		107,327							114,152
Stockholders’ equity		88,348							84,027
Total liabilities & stockholders’ equity	$	705,472						$	718,910
Net interest income			$	5,383						$	6,295
Interest rate spread						2.67	%						3.32	%
Net interest margin						3.28	%						3.74	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities results in rates of 3.11% and 3.24% for the three months ended September 30, 2024 and 2023, respectively.
(2) Annualized.

	Nine Months Ended							Nine Months Ended
	September 30, 2024							September 30, 2023
	Average		Interest Income/		Yield/			Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾			Balance		Expense		Rate⁽²⁾
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits & federal funds sold	$	50,409	$	1,962		5.19	%	$	34,214	$	1,214		4.73	%
Securities⁽¹⁾		60,082		1,243		2.76	%		70,268		1,502		2.85	%
Loans, including fees		549,925		23,010		5.58	%		569,977		22,426		5.25	%
Total interest-earning assets		660,416		26,215		5.29	%		674,459		25,142		4.97	%
Other assets		49,771							45,690
Total assets	$	710,187						$	720,149

Interest-bearing liabilities
Demand & NOW accounts	$	67,882	$	48		0.09	%	$	77,948	$	57		0.10	%
Money market accounts		142,078		2,899		2.72	%		133,491		1,091		1.09	%
Savings accounts		60,319		31		0.07	%		72,111		35		0.06	%
Time deposits		223,108		6,956		4.16	%		203,527		4,149		2.72	%
Total deposits		493,387		9,934		2.68	%		487,077		5,332		1.46	%
Borrowed funds & other interest-bearing liabilities		25,099		558		2.96	%		39,451		1,010		3.41	%
Total interest-bearing liabilities		518,486		10,492		2.70	%		526,528		6,342		1.61	%
Other non-interest bearing liabilities		104,728							110,108
Stockholders’ equity		86,973							83,513
Total liabilities & stockholders’ equity	$	710,187						$	720,149
Net interest income			$	15,723						$	18,800
Interest rate spread						2.59	%						3.36	%
Net interest margin						3.17	%						3.72	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities results in rates of 3.14% and 3.26% for the nine months ended September 30, 2024 and 2023, respectively.
(2) Annualized.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2024			2023			2024			2023
	(Unaudited)
Selected Financial Ratios:
Return on average assets		0.76	%		0.87	%		0.65	%		0.75	%
Return on average equity		6.03	%		7.48	%		5.31	%		6.50	%
Average interest-earning assets to average interest-bearing liabilities		128.81	%		129.32	%		127.37	%		128.10	%
Interest rate spread		2.67	%		3.32	%		2.59	%		3.36	%
Net interest margin		3.28	%		3.74	%		3.17	%		3.72	%
Efficiency ratio		77.96	%		75.30	%		81.89	%		81.00	%

	As of			As of
	September 30,			December 31,
	2024			2023
	(Unaudited)

Asset Quality Ratios:
Non-performing loans as a percentage of net loans		0.74	%		0.60	%
Non-performing assets as a percentage of total assets		0.57	%		0.47	%
Allowance for credit losses as a percentage of net loans		1.01	%		1.16	%
Allowance for credit losses as a percentage of non-performing loans		137.03	%		193.09	%

	As of				As of
	September 30,				December 31,
	2024				2023
		(Unaudited)

Share and Capital Information:
Common stock, number of shares outstanding			5,737,036			5,686,288
Treasury stock, number of shares held			1,099,478			1,150,226
Book value per share	$		15.67		$	15.17
Tier 1 leverage ratio			13.37	%		12.68	%
Total risk-based capital ratio			18.85	%		17.77	%

The MIL Network –

January 25, 2025

MIL-OSI: CVB Financial Corp. Reports Earnings for the Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

Third Quarter 2024

Net Earnings of $51 million, or $0.37 per share
Return on Average Assets of 1.23%
Return on Average Tangible Common Equity of 14.93%
Net Interest Margin of 3.05%

Ontario, CA, Oct. 23, 2024 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended September 30, 2024.

CVB Financial Corp. reported net income of $51.2 million for the quarter ended September 30, 2024, compared with $50.0 million for the second quarter of 2024 and $57.9 million for the third quarter of 2023. Diluted earnings per share were $0.37 for the third quarter, compared to $0.36 for the prior quarter and $0.42 for the same period last year. Net income of $51.2 million for the third quarter of 2024 produced an annualized return on average equity (“ROAE”) of 9.40%, an annualized return on average tangible common equity (“ROATCE”) of 14.93%, and an annualized return on average assets (“ROAA”) of 1.23%.

David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “We are pleased with our third quarter results. The Bank continues to execute on our strategy of banking the best small to medium sized businesses in the markets we serve. The results in the third quarter represent our 190^th consecutive quarter of profitability. I am very proud of the commitment of our associates to our mission and the loyalty of our customers to our shared vision of success.“

Highlights for the Third Quarter of 2024

Net interest margin of 3.05%
Efficiency Ratio of 46.5%
TCE Ratio = 9.7% & CET1 Ratio > 15%
Net income grew by 2.4%, compared to the second quarter of 2024
Deposits and customer repurchase agreements increased $408 million compared to the end of the second quarter of 2024
Noninterest-bearing deposits were 59% of total deposits
Early redemption of $1.3 billion of Bank Term Funding Program borrowings
Sold $312 million in AFS securities for a loss of $11.6 million
Executed the sale and leaseback of two buildings generating gains of $9.1 million
Loans declined by $109 million, or 1.3% from the end of the second quarter of 2024
Net recoveries were $156,000 for the third quarter of 2024

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
	(Dollars in thousands, except per share amounts)
Net interest income	$	113,619		$	110,849		$	123,371		$	336,929		$	368,634
Recapure of (provision for) credit losses		–			–			(2,000	)		–			(4,000	)
Noninterest income		12,834			14,424			14,309			41,371			40,167
Noninterest expense		(58,835	)		(56,497	)		(55,058	)		(175,103	)		(163,956	)
Income taxes		(16,394	)		(18,741	)		(22,735	)		(53,339	)		(67,918	)
Net earnings	$	51,224		$	50,035		$	57,887		$	149,858		$	172,927
Earnings per common share:
Basic	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24
Diluted	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24

NIM		3.05	%		3.05	%		3.31	%		3.06	%		3.32	%
ROAA		1.23	%		1.24	%		1.40	%		1.23	%		1.41	%
ROAE		9.40	%		9.57	%		11.33	%		9.43	%		11.50	%
ROATCE		14.93	%		15.51	%		18.82	%		15.19	%		19.24	%
Efficiency ratio		46.53	%		45.10	%		39.99	%		46.29	%		40.11	%

Net Interest Income
Net interest income was $113.6 million for the third quarter of 2024. This represented a $2.8 million, or 2.50%, increase from the second quarter of 2024, and a $9.8 million, or 7.90%, decrease from the third quarter of 2023. The quarter-over-quarter increase in net interest income was primarily due to a $7.0 million increase in interest income resulting from a $513 million average increase in our interest-earning balances due from the Federal Reserve, partially offset by a $3.8 million increase in interest on deposits. The decline in net interest income compared to the third quarter of 2023 was primarily due to a 26 basis point decline in net interest margin.

Net Interest Margin
Our tax equivalent net interest margin was 3.05% for both the second and third quarters of 2024, compared to 3.31% for the third quarter of 2023. Our cost of funds compared to the second quarter of 2024 increased nine basis points, which was offset by a six basis point increase in our interest-earning asset yield. The six basis point increase in our interest-earning asset yield was due to a five basis point increase in loan yields and funds on deposit at the Federal Reserve increasing as a percentage of earnings assets to 8.2%, from 4.8% in the prior quarter. Average funds held at the Federal Reserve of $1.22 billion, grew by $513 million from the second quarter of 2024, earning 5.4% on average for the third quarter. Our cost of funds increased in the third quarter to 1.47%, as our cost of deposits and customer repurchase agreements increased by 14 basis points to 1.01%. The cost of interest-bearing non-maturity deposits increased from the prior quarter by 22 basis points. On average, borrowings decreased by $121 million compared to the second quarter, while continuing to have an average cost of 4.77%. The 26 basis point decrease in net interest margin compared to the third quarter of 2023, was primarily the result of a 55 basis point increase in cost of funds. This increase in cost of funds from the prior year quarter was the result of a 46 basis point increase in the cost of deposits and an increase in the level of borrowings, which grew on average by $411 million. A 25 basis point increase in earning asset yields over the prior year quarter partially offset the increase in funding costs. The higher earning asset yields, included higher loan yields, which grew from 5.07% for the third quarter of 2023 to 5.31% for the third quarter of 2024. The higher earning asset yield was also the result of the increase in average funds held at the Federal Reserve, which grew from 3.1% of earning assets in the third quarter of 2023 to 8.2% in the third quarter of 2024.

Earning Assets and Deposits
On average, total earning assets grew by $262 million, or 1.79%, quarter-over-quarter. This growth includes the $513 million increase in average funds on deposit at the Federal Reserve. Investment securities and loans declined on average by $126.9 million and $126.3 million, respectively, when compared to the second quarter of 2024. The decline in investment securities includes the impact of selling approximately $300 million of AFS securities during the third quarter. Compared to the third quarter of 2023, the mix of assets changed modestly, with the average balance of investment securities decreasing by $462.6 million, declining from 37% to 34% of total earning assets. Conversely, the average amount of funds held at the Federal Reserve increased by $748.8 million, growing from 3.1% of total earning assets in the third quarter of 2023 to 8.2% for the third quarter of 2024. Noninterest-bearing deposits declined on average by $28.4 million, or 0.40%, from the second quarter of 2024 and interest-bearing deposits and customer repurchase agreements increased on average by $279.2 million. Compared to the third quarter of 2023, total deposits and customer repurchase agreements declined on average by $503.7 million, or 3.90%, including a decline of $688 million, or 8.8%, in noninterest-bearing deposits. Non-maturity interest-bearing deposits and customer repurchase agreements decreased by $247.5 million on average, while time deposits grew on average by $431.9 million. On average, noninterest-bearing deposits were 59.10% of total deposits during the most recent quarter, compared to 60.20% for the second quarter of 2024 and 62.09% for the third quarter of 2023.

		Three Months Ended
SELECTED FINANCIAL HIGHLIGHTS		September 30, 2024				June 30, 2024				September 30, 2023
		(Dollars in thousands)
Yield on average investment securities (TE)			2.67		%		2.71		%		2.64		%
Yield on average loans			5.31		%		5.26		%		5.07		%
Yield on average earning assets (TE)			4.43		%		4.37		%		4.18		%
Cost of deposits			0.98		%		0.88		%		0.52		%
Cost of funds			1.47		%		1.38		%		0.92		%
Net interest margin (TE)			3.05		%		3.05		%		3.31		%

Average Earning Asset Mix		Avg		% of Total		Avg		% of Total		Avg		% of Total
	Total investment securities	$	5,080,033	34.01	%	$	5,206,959	35.49	%	$	5,542,590	37.20	%
	Interest-earning deposits with other institutions		1,232,551	8.25	%		716,916	4.89	%		473,391	3.18	%
	Loans		8,605,270	57.61	%		8,731,587	59.51	%		8,862,462	59.48	%
	Total interest-earning assets		14,935,866				14,673,474				14,900,003

Provision for Credit Losses
There was no provision for credit losses in the third and second quarter of 2024, compared to $2.0 million in provision in the third quarter of 2023. Net recoveries for the third quarter of 2024 were $156,000, compared to net charge-offs $31,000 in the prior quarter. Allowance for credit losses represented 0.97% of gross loans at September 30, 2024, compared to 0.95% at June 30, 2024.

Noninterest Income
Noninterest income was $12.8 million for the third quarter of 2024, compared with $14.4 million for the second quarter of 2024 and $14.3 million for the third quarter of 2023. During the third quarter of 2024, the Bank executed sale-leaseback transactions with the sale of two buildings, which operate as Banking Centers, and were simultaneously leased back, resulting in a pre-tax net gain of $9.1 million. The gains on selling the buildings were offset by realizing a pre-tax net loss of $11.6 million on the sale of $312 million of AFS securities. Third quarter income from Bank Owned Life Insurance (“BOLI”) increased by $557,000 from the second quarter of 2024 and increased by $2 million compared to the third quarter of 2023. We experienced $320,000 in death benefits that exceeded the asset value on certain policies in the third quarter of 2024, compared to no death benefits in the second quarter of 2024 and no death benefits in the third quarter of 2023. The year-over-year increase of $2 million in BOLI income was primarily due to the restructuring and enhancements in BOLI policies during the fourth quarter of 2023. Trust and investment service fees grew by 4.0% or $137,000 compared to the prior quarter and by 9.8% or $319,000 compared to the third quarter of 2023.

Noninterest Expense
Noninterest expense for the third quarter of 2024 was $58.8 million, compared to $56.5 million for the second quarter of 2024 and $55.0 million for the third quarter of 2023. The $2.3 million quarter-over-quarter increase included a $1.2 million increase in staff related expense, as annual salary increases took effect in July. The $690,000 quarter-over-quarter increase in regulatory assessments was due to the $700,000 accrual adjustment in the second quarter of 2024 related the FDIC special assessment. There was a $750,000 recapture of provision for unfunded loan commitments in the third quarter of 2024, compared to a $500,000 recapture of provision in the second quarter of 2024 and $900,000 recaptured in the third quarter of 2023. Occupancy and equipment expense grew by $432,000 or 7%, compared to the prior quarter, including the impact of the two buildings that were sold and leased back during the third quarter.

The $3.8 million increase in noninterest expense year-over-year included increased staff related expenses of $1.9 million, or 5.48%. Professional services increased $738,000, including a $627,000 increase in legal expense year-over-year. Occupancy and equipment expense increased by $586,000, or 10.43% and software expense increased $258,000, or 7% year-over-year. As a percentage of average assets, noninterest expense was 1.42% for the third quarter of 2024, compared to 1.40% for the second quarter of 2024 and 1.33% for the third quarter of 2023. The efficiency ratio for the third quarter of 2024 was 46.53%, compared to 45.10% for the second quarter of 2024 and 39.99% for the third quarter of 2023.

Income Taxes
Our effective tax rate for the nine months ended September 30, 2024 was 26.25%, compared with 28.20% for the same period of 2023. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

BALANCE SHEET HIGHLIGHTS

Assets
The Company reported total assets of $15.4 billion at September 30, 2024. This represented a decrease of $748.3 million, or 4.63%, from total assets of $16.15 billion at June 30, 2024. The decrease in assets included a $416.9 million decrease in interest-earning balances due from the Federal Reserve, a $304.8 million decrease in investment securities, and a $109.4 million decrease in net loans.

Total assets decreased by $617.8 million, or 3.86%, from total assets of $16.02 billion at December 31, 2023. The decrease in assets included a $549.9 million decrease in investment securities, and a $328.4 million decrease in net loans, partially offset by a $142.9 million increase in interest-earning balances due from the Federal Reserve.

Total assets at September 30, 2024 decreased by $499.8 million, or 3.14%, from total assets of $15.90 billion at September 30, 2023. The decrease in assets was primarily due to a $491.8 million decrease in investment securities and a $299.0 million decrease in net loans, partially offset by an increase of $188.6 million in interest-earning balances due from the Federal Reserve and a $57.1 million increase in the cash surrender value of BOLI.

Sale-Leaseback Transaction
During the third quarter of 2024, the Bank executed sale-leaseback transactions and sold two buildings, that are utilized as Banking Centers, for an aggregate sale price of $17 million. The Bank simultaneously entered into lease agreements with the respective purchasers for initial terms of 15 and 18 years. These sale-leaseback transactions resulted in a pre-tax net gain of $9.1 million for the third quarter of 2024. The Bank also recorded Right of Use (“ROU”) assets and corresponding operating lease liabilities each totaling $11.2 million.

Investment Securities and BOLI
Total investment securities were $4.87 billion at September 30, 2024, a decrease of $549.9 million, or 10.14% from December 31, 2023, and a decrease of $491.8 million, or 9.17%, from $5.36 billion at September 30, 2023.

At September 30, 2024, investment securities available-for-sale (“AFS”) totaled $2.47 billion, inclusive of a pre-tax net unrealized loss of $367.7 million. AFS securities decreased by $280.2 million from the prior quarter end, by $490.5 million, or 16.59%, from December 31, 2023 and decreased by $407.6 million, or 14.19%, from $2.87 billion at September 30, 2023. Pre-tax unrealized loss decreased by $120.2 million from the end of the prior quarter, and declined by $82.1 million from December 31, 2023 and by $260.7 million from September 30, 2023.

Concurrent with the sale-leaseback transactions during the third quarter of 2024, the Bank sold AFS securities with a book value of $312 million, resulting in a net pre-tax loss of $11.6 million.

At September 30, 2024, investment securities held-to-maturity (“HTM”) totaled $2.41 billion, a decrease of $24.6 million from the prior quarter end, a $59.4 million, or 2.41% decline from December 31, 2023, and a decrease of $84.2 million, or 3.38%, from September 30, 2023.

Combined, the AFS and HTM investments in mortgage backed securities (“MBS”) and collateralized mortgage obligations (“CMO”) totaled $3.82 billion or approximately 78% of the total investment securities at September 30, 2024. Virtually all of our MBS and CMO are issued or guaranteed by government or government sponsored enterprises, which have the implied guarantee of the U.S. Government. In addition, at September 30, 2024, we had $552.6 million of Government Agency securities that represent approximately 11.3% of the total investment securities.

Our combined AFS and HTM municipal securities totaled $485.7 million as of September 30, 2024, or 10% of our total investment portfolio. These securities are located in 35 states. Our largest concentrations of holdings by state, as a percentage of total municipal bonds, are located in Texas at 16.09%, Minnesota at 11.07%, and California at 9.71%.

At September 30, 2024, the Company had $316.6 million of Bank Owned Life insurance (“BOLI”), compared to $308.7 million at December 31, 2023 and $259.5 million at September 30, 2023. The $57.1 million increase in value of BOLI, when compared to September 30, 2023, was primarily due to a restructuring of the Company’s life insurance policies at the end of 2023, including a $4.5 million write-down in value on surrender policies that was offset by a $10.9 million enhancement to cash surrender values, as well as additional policy purchases totaling $41 million. This restructuring has increased returns on our BOLI policies resulting in additional non-taxable noninterest income in 2024.

Loans
Total loans and leases, at amortized cost, of $8.57 billion at September 30, 2024 decreased by $109.3 million, or 1.26%, from June 30, 2024. The quarter-over quarter decrease in loans included decreases of $46.3 million in commercial real estate loans, $37.5 million in construction loans, $19.7 million in commercial and industrial loans, and $8.1 million in dairy & livestock and agribusiness loans.

Total loans and leases, at amortized cost, decreased by $332.3 million, or 3.73%, from December 31, 2023. The decrease in total loans included decreases of $165.9 million in commercial real estate loans, $70.5 million in dairy & livestock and agribusiness loans, $52.0 million in construction loans, and $33.4 million in commercial and industrial loans.

Total loans and leases, at amortized cost, decreased by $305.1 million, or 3.44%, from September 30, 2023. The $305.1 million decrease included decreases of $224.4 million in commercial real estate loans, $48.3 million in construction loans, $13.1 million in SBA loans, $9.0 million in dairy & livestock and agribusiness loans, and $8.0 million in municipal lease financings.

Asset Quality
During the third quarter of 2024, we experienced credit charge-offs of $26,000 and total recoveries of $182,000, resulting in net recoveries of $156,000. The allowance for credit losses (“ACL”) totaled $82.9 million at September 30, 2024, compared to $82.8 million at June 30, 2024 and $89.0 million at September 30, 2023. At September 30, 2024, ACL as a percentage of total loans and leases outstanding was 0.97%. This compares to 0.95% at June 30, 2024 and 0.98% at December 31, 2023 and 1.00% at September 30, 2023.

Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

Nonperforming Assets and Delinquency Trends

September 30,
2024

June 30,
2024

September 30,
2023

Nonperforming loans

(Dollars in thousands)

Commercial real estate

$

18,794

$

21,908

$

3,655

SBA

151

337

1,050

Commercial and industrial

2,825

2,712

4,672

Dairy & livestock and agribusiness

143

–

243

SFR mortgage

–

339

Consumer and other loans

–

4

Total

$

21,913

$

24,957

$

9,963

[1]

% of Total loans

0.26

%

0.29

%

0.11

%

OREO

Commercial real estate

$

–

$

–

$

–

Commercial and industrial

647

–

SFR mortgage

–

Total

$

647

$

647

$

–

Total nonperforming assets

$

22,560

$

25,604

$

9,963

% of Nonperforming assets to total assets

0.15

%

0.16

%

0.06

%

Past due 30-89 days (accruing)

Commercial real estate

$

30,701

$

43

$

136

SBA

–

Commercial and industrial

64

103

–

Dairy & livestock and agribusiness

–

SFR mortgage

–

Consumer and other loans

–

Total

$

30,765

$

146

$

136

% of Total loans

0.36

%

0.00

%

0.00

%

Classified Loans

$

124,606

$

124,728

$

92,246

[1] Includes $2.6 million of nonaccrual loans past due 30-89 days.

The $3.0 million decrease in nonperforming loans from June 30, 2024 was primarily due to the payoff of one nonperforming commercial real estate loans totaling $2.3 million and $1.4 million in paydowns of nonperforming commercial real estate loans associated with two relationships. Past due loans grew to more than $30 million on September 30, 2024. Classified loans are loans that are graded “substandard” or worse. Classified loans decreased $122,000 quarter-over-quarter, primarily due to a $668,000 net decrease in classified commercial real estate loans, which included the payoff of 4 loans totaling $11.5 million that were partially offset by the addition of six classified commercial real estate loans in the third quarter of 2024. Classified dairy & livestock and agribusiness loans declined by $3.5 million due to paydowns and classified commercial and industrial loans increased $3.5 million primarily due to the addition of one classified commercial and industrial loan.

Deposits & Customer Repurchase Agreements
Deposits of $12.07 billion and customer repurchase agreements of $394.5 million totaled $12.47 billion at September 30, 2024. This represented a net increase of $407.9 million compared to June 30, 2024. Total deposits at September 30, 2024 included $400 million in brokered time deposits. Total deposits and customer repurchase agreements increased $761.7 million, or 6.51%, when compared to $11.71 billion at December 31, 2023 partially due to the growth in brokered deposits, and decreased $161.3 million, or 1.28% when compared to $12.63 billion at September 30, 2023.

Noninterest-bearing deposits were $7.14 billion at September 30, 2024, an increase of $46.7 million, or 0.66%, when compared to $7.09 billion at June 30, 2024. Noninterest-bearing deposits decreased by $69.4 million, or 0.96% when compared to $7.21 billion at December 31, 2023, and decreased by $449.8 million, or 5.93% when compared to $7.59 billion at September 30, 2023. At September 30, 2024, noninterest-bearing deposits were 59.12% of total deposits, compared to 60.13% at June 30, 2024, 63.03% at December 31, 2023, and 61.39% at September 30, 2023.

Borrowings
As of September 30, 2024, total borrowings consisted of $500 million of FHLB advances. The FHLB advances include maturities of $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027. During the third quarter of 2024, we repaid the $1.3 billion of borrowings from the Federal Reserve’s Bank Term Funding Program, with a cost of 4.76%, that were scheduled to mature in January of 2025.

Capital
The Company’s total equity was $2.20 billion at September 30, 2024. This represented an overall increase of $119.9 million from total equity of $2.08 billion at December 31, 2023. Increases to equity included $149.9 million in net earnings and a $48.7 million increase in other comprehensive income, that were partially offset by $83.9 million in cash dividends. We engaged in no stock repurchases during the first nine months of 2024. Our tangible book value per share at September 30, 2024 was $10.17.

Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards.

			CVB Financial Corp. Consolidated
Capital Ratios	Minimum Required Plus Capital Conservation Buffer		September 30, 2024		December 31, 2023		September 30, 2023

Tier 1 leverage capital ratio	4.0	%	10.6	%	10.3	%	10.0	%
Common equity Tier 1 capital ratio	7.0	%	15.8	%	14.6	%	14.4	%
Tier 1 risk-based capital ratio	8.5	%	15.8	%	14.6	%	14.4	%
Total risk-based capital ratio	10.5	%	16.6	%	15.5	%	15.3	%

Tangible common equity ratio			9.7	%	8.5	%	7.7	%

CitizensTrust

As of September 30, 2024, CitizensTrust had approximately $4.7 billion in assets under management and administration, including $3.3 billion in assets under management. Revenues were $3.6 million for the third quarter of 2024, compared to $3.2 million for the same period of 2023. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

Corporate Overview
CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

Conference Call
Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, October 24, 2024 to discuss the Company’s third quarter 2024 financial results. The conference call can be accessed live by registering at: https://register.vevent.com/register/BI6b56a1a5e9bf45efa402c04252b87308

The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

Safe Harbor
Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target, key personnel and customers into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits (including low cost deposits) or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; systemic or non-systemic bank failures or crises; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2023 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)


	September 30, 2024			December 31, 2023			September 30, 2023

Cash and due from banks	$	200,651		$	171,396		$	176,488
Interest-earning balances due from Federal Reserve		252,809			109,889			64,207
Total cash and cash equivalents		453,460			281,285			240,695
Interest-earning balances due from depository institutions		24,338			8,216			4,108
Investment securities available-for-sale		2,465,585			2,956,125			2,873,163
Investment securities held-to-maturity		2,405,254			2,464,610			2,489,441
Total investment securities		4,870,839			5,420,735			5,362,604
Investment in stock of Federal Home Loan Bank (FHLB)		18,012			18,012			18,012
Loans and lease finance receivables		8,572,565			8,904,910			8,877,632
Allowance for credit losses		(82,942	)		(86,842	)		(88,995	)
Net loans and lease finance receivables		8,489,623			8,818,068			8,788,637
Premises and equipment, net		36,275			44,709			44,561
Bank owned life insurance (BOLI)		316,553			308,706			259,468
Intangibles		11,130			15,291			16,736
Goodwill		765,822			765,822			765,822
Other assets		417,164			340,149			402,372
Total assets	$	15,403,216		$	16,020,993		$	15,903,015
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,136,824		$	7,206,175		$	7,586,649
Investment checking		504,028			552,408			560,223
Savings and money market		3,745,707			3,278,664			3,906,187
Time deposits		685,930			396,395			305,727
Total deposits		12,072,489			11,433,642			12,358,786
Customer repurchase agreements		394,515			271,642			269,552
Other borrowings		500,000			2,070,000			1,120,000
Other liabilities		238,381			167,737			203,276
Total liabilities		13,205,385			13,943,021			13,951,614
Stockholders’ Equity
Stockholders’ equity		2,472,660			2,401,541			2,378,539
Accumulated other comprehensive loss, net of tax		(274,829	)		(323,569	)		(427,138	)
Total stockholders’ equity		2,197,831			2,077,972			1,951,401
Total liabilities and stockholders’ equity	$	15,403,216		$	16,020,993		$	15,903,015

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
(Unaudited)
(Dollars in thousands)


	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Assets
Cash and due from banks	$	162,383		$	162,724		$	176,133		$	162,385		$	176,559
Interest-earning balances due from Federal Reserve		1,216,671			704,023			467,873			786,282			285,573
Total cash and cash equivalents		1,379,054			866,747			644,006			948,667			462,132
Interest-earning balances due from depository institutions		15,880			12,893			5,518			13,161			7,630
Investment securities available-for-sale		2,661,990			2,764,096			3,040,965			2,774,981			3,139,369
Investment securities held-to-maturity		2,418,043			2,442,863			2,501,625			2,439,427			2,524,799
Total investment securities		5,080,033			5,206,959			5,542,590			5,214,408			5,664,168
Investment in stock of FHLB		18,012			18,012			21,560			18,012			27,460
Loans and lease finance receivables		8,605,270			8,731,587			8,862,462			8,720,058			8,905,697
Allowance for credit losses		(82,810	)		(82,815	)		(86,986	)		(83,788	)		(86,222	)
Net loans and lease finance receivables		8,522,460			8,648,772			8,775,476			8,636,270			8,819,475
Premises and equipment, net		38,906			43,624			45,315			42,291			45,731
Bank owned life insurance (BOLI)		315,435			312,645			258,485			312,574			257,358
Intangibles		11,819			13,258			17,526			13,216			19,256
Goodwill		765,822			765,822			765,822			765,822			765,822
Other assets		365,740			390,834			357,280			368,951			343,782
Total assets	$	16,513,161		$	16,279,566		$	16,433,578		$	16,333,372		$	16,412,814
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,124,952		$	7,153,315		$	7,813,120		$	7,153,557		$	7,908,749
Interest-bearing		4,931,220			4,728,864			4,769,897			4,705,566			4,624,848
Total deposits		12,056,172			11,882,179			12,583,017			11,859,123			12,533,597
Customer repurchase agreements		363,959			287,128			340,809			320,280			461,478
Other borrowings		1,729,405			1,850,330			1,318,098			1,856,771			1,273,521
Other liabilities		196,832			157,463			164,624			174,328			133,046
Total liabilities		14,346,368			14,177,100			14,406,548			14,210,502			14,401,642
Stockholders’ Equity
Stockholders’ equity		2,479,766			2,456,945			2,383,922			2,456,348			2,357,028
Accumulated other comprehensive loss, net of tax		(312,973	)		(354,479	)		(356,892	)		(333,478	)		(345,856	)
Total stockholders’ equity		2,166,793			2,102,466			2,027,030			2,122,870			2,011,172
Total liabilities and stockholders’ equity	$	16,513,161		$	16,279,566		$	16,433,578		$	16,333,372		$	16,412,814

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)


	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Interest income:
Loans and leases, including fees	$	114,929		$	114,200		$	113,190		$	345,478		$	332,574
Investment securities:
Investment securities available-for-sale		20,178			21,225			22,441			62,849			61,393
Investment securities held-to-maturity		13,284			13,445			13,576			40,131			41,272
Total investment income		33,462			34,670			36,017			102,980			102,665
Dividends from FHLB stock		375			377			598			1,171			1,430
Interest-earning deposits with other institutions		16,986			9,825			6,422			32,884			11,583
Total interest income		165,752			159,072			156,227			482,513			448,252
Interest expense:
Deposits		29,821			25,979			16,517			77,166			32,647
Borrowings and customer repurchase agreements		22,312			22,244			16,339			68,418			46,971
Total interest expense		52,133			48,223			32,856			145,584			79,618
Net interest income before provision for (recapture of) credit losses		113,619			110,849			123,371			336,929			368,634
Provision for (recapture of) credit losses		–			–			2,000			–			4,000
Net interest income after provision for (recapture of) credit losses		113,619			110,849			121,371			336,929			364,634
Noninterest income:
Service charges on deposit accounts		5,120			5,117			5,062			15,273			15,244
Trust and investment services		3,565			3,428			3,246			10,217			9,475
Loss on sale of AFS investment securities		(11,582	)		–			–			(11,582	)		–
Gain on sale leaseback transactions		9,106			–			–			9,106			–
Other		6,625			5,879			6,001			18,357			15,448
Total noninterest income		12,834			14,424			14,309			41,371			40,167
Noninterest expense:
Salaries and employee benefits		36,647			35,426			34,744			108,474			103,539
Occupancy and equipment		6,204			5,772			5,618			17,541			16,585
Professional services		2,855			2,726			2,117			7,836			6,375
Computer software expense		3,906			3,949			3,648			11,380			10,372
Marketing and promotion		1,964			1,956			1,628			5,550			4,664
Amortization of intangible assets		1,286			1,437			1,567			4,161			5,006
(Recapture of) provision for unfunded loan commitments		(750	)		(500	)		(900	)		(1,250	)		–
Other		6,723			5,731			6,636			21,411			17,415
Total noninterest expense		58,835			56,497			55,058			175,103			163,956
Earnings before income taxes		67,618			68,776			80,622			203,197			240,845
Income taxes		16,394			18,741			22,735			53,339			67,918
Net earnings	$	51,224		$	50,035		$	57,887		$	149,858		$	172,927

Basic earnings per common share	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24
Diluted earnings per common share	$	0.37		$	0.36		$	0.42		$	1.07		$	1.24
Cash dividends declared per common share	$	0.20		$	0.20		$	0.20		$	0.60		$	0.60

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Interest income – tax equivalent (TE)	$	166,285		$	159,607		$	156,771		$	484,120		$	449,888
Interest expense		52,133			48,223			32,856			145,584			79,618
Net interest income – (TE)	$	114,152		$	111,384		$	123,915		$	338,536		$	370,270

Return on average assets, annualized		1.23	%		1.24	%		1.40	%		1.23	%		1.41	%
Return on average equity, annualized		9.40	%		9.57	%		11.33	%		9.43	%		11.50	%
Efficiency ratio [1]		46.53	%		45.10	%		39.99	%		46.29	%		40.11	%
Noninterest expense to average assets, annualized		1.42	%		1.40	%		1.33	%		1.43	%		1.34	%
Yield on average loans		5.31	%		5.26	%		5.07	%		5.29	%		4.99	%
Yield on average earning assets (TE)		4.43	%		4.37	%		4.18	%		4.38	%		4.04	%
Cost of deposits		0.98	%		0.88	%		0.52	%		0.87	%		0.35	%
Cost of deposits and customer repurchase agreements		1.01	%		0.87	%		0.51	%		0.87	%		0.34	%
Cost of funds		1.47	%		1.38	%		0.92	%		1.39	%		0.75	%
Net interest margin (TE)		3.05	%		3.05	%		3.31	%		3.06	%		3.32	%
[1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.

Tangible Common Equity Ratio (TCE) [2]
CVB Financial Corp. Consolidated		9.71	%		8.68	%		7.73	%
Citizens Business Bank		9.59	%		8.57	%		7.63	%
[2] (Capital – [GW+Intangibles])/(Total Assets – [GW+Intangibles])

Weighted average shares outstanding
Basic		138,649,763			138,583,510			138,345,000			138,415,424			138,360,531
Diluted		138,839,499			138,669,058			138,480,633			138,548,651			138,481,462
Dividends declared	$	27,977		$	28,018		$	27,901		$	83,881		$	83,695
Dividend payout ratio [3]		54.62	%		56.00	%		48.20	%		55.97	%		48.40	%
[3] Dividends declared on common stock divided by net earnings.

Number of shares outstanding – (end of period)		139,678,314			139,677,162			139,337,699
Book value per share	$	15.73		$	15.12		$	14.00
Tangible book value per share	$	10.17		$	9.55		$	8.39

	September 30, 2024			December 31, 2023			September 30, 2023
	September 30, 2024			December 31, 2023			September 30, 2023
Nonperforming assets:
Nonaccrual loans	$	21,913		$	21,302		$	9,963
Other real estate owned (OREO), net		647			–			–
Total nonperforming assets	$	22,560		$	21,302		$	9,963
Modified loans/performing troubled debt restructured loans (TDR) [4]	$	15,769		$	9,460		$	7,304

[4] Effective January 1, 2023, performing and nonperforming TDRs are reflected as Loan Modifications to borrowers experiencing financial difficulty.

Percentage of nonperforming assets to total loans outstanding and OREO		0.26	%		0.24	%		0.11	%
Percentage of nonperforming assets to total assets		0.15	%		0.13	%		0.06	%
Allowance for credit losses to nonperforming assets		367.65	%		407.67	%		893.26	%

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Allowance for credit losses:
Beginning balance	$	82,786		$	82,817		$	86,967		$	86,842		$	85,117
Total charge-offs		(26	)		(51	)		(26	)		(4,344	)		(224	)
Total recoveries on loans previously charged-off		182			20			54			444			102
Net recoveries (charge-offs)		156			(31	)		28			(3,900	)		(122	)
Provision for (recapture of) credit losses		–			–			2,000			–			4,000
Allowance for credit losses at end of period	$	82,942		$	82,786		$	88,995		$	82,942		$	88,995

Net recoveries (charge-offs) to average loans		0.002	%		-0.000	%		0.000	%		-0.045	%		-0.001	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in millions)

Allowance for Credit Losses by Loan Type

	September 30, 2024					December 31, 2023					September 30, 2023
	Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type			Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type			Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type

Commercial real estate	$	69.7		1.05	%	$	69.5		1.02	%	$	70.9		1.04	%
Construction		0.5		3.07	%		1.3		1.91	%		1.0		1.59	%
SBA		2.5		0.92	%		2.7		0.99	%		3.0		1.08	%
Commercial and industrial		5.3		0.56	%		9.1		0.94	%		9.3		0.99	%
Dairy & livestock and agribusiness		3.8		1.12	%		3.1		0.75	%		3.6		1.01	%
Municipal lease finance receivables		0.2		0.28	%		0.2		0.29	%		0.3		0.33	%
SFR mortgage		0.4		0.16	%		0.5		0.20	%		0.5		0.20	%
Consumer and other loans		0.5		0.99	%		0.4		0.85	%		0.4		0.82	%

Total	$	82.9		0.97	%	$	86.8		0.98	%	$	89.0		1.00	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

Quarterly Common Stock Price

		2024					2023						2022
Quarter End	High		Low			High			Low			High			Low
March 31,	$	20.45	$	15.95		$	25.98		$	16.34		$	24.37		$	21.36
June 30,	$	17.91	$	15.71		$	16.89		$	10.66		$	25.59		$	22.37
September 30,	$	20.29	$	16.08		$	19.66		$	12.89		$	28.14		$	22.63
December 31,	$	–	$	–		$	21.77		$	14.62		$	29.25		$	25.26

Quarterly Consolidated Statements of Earnings

			Q3			Q2			Q1			Q4			Q3
				2024			2024			2024			2023			2023
Interest income
Loans and leases, including fees			$	114,929		$	114,200		$	116,349		$	115,721		$	113,190
Investment securities and other				50,823			44,872			41,340			42,357			43,037
Total interest income				165,752			159,072			157,689			158,078			156,227
Interest expense
Deposits				29,821			25,979			21,366			18,888			16,517
Borrowings and customer repurchase agreements				22,312			22,244			23,862			19,834			16,339
Total interest expense				52,133			48,223			45,228			38,722			32,856
Net interest income before (recapture of)
provision for credit losses				113,619			110,849			112,461			119,356			123,371
(Recapture of) provision for credit losses				–			–			–			(2,000	)		2,000
Net interest income after (recapture of)
provision for credit losses				113,619			110,849			112,461			121,356			121,371

Noninterest income				12,834			14,424			14,113			19,163			14,309
Noninterest expense				58,835			56,497			59,771			65,930			55,058
Earnings before income taxes				67,618			68,776			66,803			74,589			80,622
Income taxes				16,394			18,741			18,204			26,081			22,735
Net earnings			$	51,224		$	50,035		$	48,599		$	48,508		$	57,887

Effective tax rate				24.25	%		27.25	%		27.25	%		34.97	%		28.20	%

Basic earnings per common share			$	0.37		$	0.36		$	0.35		$	0.35		$	0.42
Diluted earnings per common share			$	0.37		$	0.36		$	0.35		$	0.35		$	0.42

Cash dividends declared per common share			$	0.20		$	0.20		$	0.20		$	0.20		$	0.20

Cash dividends declared			$	27,977		$	28,018		$	27,886		$	27,945		$	27,901

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Loan Portfolio by Type
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023

Commercial and industrial	$	6,618,637		$	6,664,925		$	6,720,538		$	6,784,505		$	6,843,059
Construction		14,755			52,227			58,806			66,734			63,022
SBA		272,001			267,938			268,320			270,619			283,124
SBA – PPP		1,255			1,757			2,249			2,736			3,233
Commercial and industrial		936,489			956,184			963,120			969,895			938,064
Dairy & livestock and agribusiness		342,445			350,562			351,624			412,891			351,463
Municipal lease finance receivables		67,585			70,889			72,032			73,590			75,621
SFR mortgage		267,181			267,593			276,475			269,868			268,171
Consumer and other loans		52,217			49,771			57,549			54,072			51,875
Gross loans, at amortized cost		8,572,565			8,681,846			8,770,713			8,904,910			8,877,632
Allowance for credit losses		(82,942	)		(82,786	)		(82,817	)		(86,842	)		(88,995	)
Net loans	$	8,489,623		$	8,599,060		$	8,687,896		$	8,818,068		$	8,788,637



Deposit Composition by Type and Customer Repurchase Agreements

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

Noninterest-bearing	$	7,136,824		$	7,090,095		$	7,112,789		$	7,206,175		$	7,586,649
Investment checking		504,028			515,930			545,066			552,408			560,223
Savings and money market		3,745,707			3,409,320			3,561,512			3,278,664			3,906,187
Time deposits		685,930			774,980			675,554			396,395			305,727
Total deposits		12,072,489			11,790,325			11,894,921			11,433,642			12,358,786

Customer repurchase agreements		394,515			268,826			275,720			271,642			269,552
Total deposits and customer repurchase agreements	$	12,467,004		$	12,059,151		$	12,170,641		$	11,705,284		$	12,628,338

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Nonperforming Assets and Delinquency Trends
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Nonperforming loans:
Commercial real estate	$	18,794		$	21,908		$	10,661		$	15,440		$	3,655
Construction		–			–			–			–			–
SBA		151			337			54			969			1,050
Commercial and industrial		2,825			2,712			2,727			4,509			4,672
Dairy & livestock and agribusiness		143			–			60			60			243
SFR mortgage		–			–			308			324			339
Consumer and other loans		–			–			–			–			4
Total	$	21,913		$	24,957		$	13,810		$	21,302		$	9,963		[1]
% of Total loans		0.26	%		0.29	%		0.16	%		0.24	%		0.11	%

Past due 30-89 days (accruing):
Commercial real estate	$	30,701		$	43		$	19,781		$	300		$	136
Construction		–			–			–			–			–
SBA		–			–			408			108			–
Commercial and industrial		64			103			6			12			–
Dairy & livestock and agribusiness		–			–			–			–			–
SFR mortgage		–			–			–			201			–
Consumer and other loans		–			–			–			18			–
Total	$	30,765		$	146		$	20,195		$	639		$	136
% of Total loans		0.36	%		0.00	%		0.23	%		0.01	%		0.00	%

OREO:
Commercial real estate	$	–		$	–		$	–		$	–		$	–
SBA		–			–			–			–			–
Commercial and industrial		647			647			647			–			–
SFR mortgage		–			–			–			–			–
Total	$	647		$	647		$	647		$	–		$	–
Total nonperforming, past due, and OREO	$	53,325		$	25,750		$	34,652		$	21,941		$	10,099
% of Total loans		0.62	%		0.30	%		0.40	%		0.25	%		0.11	%

[1] Includes $2.6 million of nonaccrual loans past due 30-89 days.

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

Regulatory Capital Ratios



			CVB Financial Corp. Consolidated
Capital Ratios	Minimum Required Plus Capital Conservation Buffer		September 30, 2024		December 31, 2023		September 30, 2023

Tier 1 leverage capital ratio	4.0	%	10.6	%	10.3	%	10.0	%
Common equity Tier 1 capital ratio	7.0	%	15.8	%	14.6	%	14.4	%
Tier 1 risk-based capital ratio	8.5	%	15.8	%	14.6	%	14.4	%
Total risk-based capital ratio	10.5	%	16.6	%	15.5	%	15.3	%

Tangible common equity ratio			9.7	%	8.5	%	7.7	%

Tangible Book Value Reconciliations (Non-GAAP)

The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of tangible book value to the Company stockholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of September 30, 2024, December 31, 2023 and September 30, 2023.


		September 30, 2024			December 31, 2023			September 30, 2023
		(Dollars in thousands, except per share amounts)

Stockholders’ equity	$	2,197,831		$	2,077,972		$	1,951,401
Less: Goodwill		(765,822	)		(765,822	)		(765,822	)
Less: Intangible assets		(11,130	)		(15,291	)		(16,736	)
Tangible book value	$	1,420,879		$	1,296,859		$	1,168,843
Common shares issued and outstanding		139,678,314			139,344,981			139,337,699
Tangible book value per share	$	10.17		$	9.31		$	8.39

Return on Average Tangible Common Equity Reconciliations (Non-GAAP)

The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company’s average stockholders’ equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.

		Three Months Ended												Nine Months Ended
		September 30,			June 30,			September 30,			September 30,				September 30,
			2024			2024			2023			2024				2023
		(Dollars in thousands)

	Net Income	$	51,224		$	50,035		$	57,887		$	149,858			$	172,927
	Add: Amortization of intangible assets		1,286			1,437			1,567			4,161				5,006
	Less: Tax effect of amortization of intangible assets [1]		(380	)		(425	)		(463	)		(1,230	)			(1,480	)
	Tangible net income	$	52,130		$	51,047		$	58,991		$	152,789			$	176,453

	Average stockholders’ equity	$	2,166,793		$	2,102,466		$	2,027,030		$	2,122,870			$	2,011,172
	Less: Average goodwill		(765,822	)		(765,822	)		(765,822	)		(765,822	)			(765,822	)
	Less: Average intangible assets		(11,819	)		(13,258	)		(17,526	)		(13,216	)			(19,256	)
	Average tangible common equity	$	1,389,152		$	1,323,386		$	1,243,682		$	1,343,832			$	1,226,094

	Return on average equity, annualized [2]		9.40	%		9.57	%		11.33	%		9.43	%			11.50	%
	Return on average tangible common equity, annualized [2]		14.93	%		15.51	%		18.82	%		15.19	%			19.24	%


	[1] Tax effected at respective statutory rates.
	[2] Annualized where applicable.

Contact:
David A. Brager
President and Chief Executive Officer
(909) 980-4030

The MIL Network –

January 25, 2025

MIL-OSI: Brookfield Real Assets Income Fund Inc. Announces Quarterly Webcast

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Brookfield Public Securities Group LLC (“PSG”) will host a webcast for Brookfield Real Assets Income Fund Inc. (NYSE: RA) (the “Fund”) on Wednesday, October 30, 2024 at 4:30pm ET. PSG will provide an update on the Fund and on general market conditions.

There will be an opportunity to ask questions about the Fund during the call. Questions may also be submitted ahead of the call by sending an e-mail to ir@brookfieldoaktree.com.

Registration and Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1690860&tp_key=3c44dc9cca

Audio only: +1 323-794-2442 or 800-289-0462
Event Code: 612518

It is not necessary to dial into the audio conference, unless you are unable to join via the webcast URL.

A replay will be available via this link shortly following the webcast. A transcript of the webcast will also be available by calling 855-777-8001 or by sending an e-mail request to the Fund at ir@brookfieldoaktree.com.

Brookfield Real Assets Income Fund Inc is managed by Brookfield Public Securities Group LLC (PSG). The Fund uses its website as a channel of distribution of material information about the Fund. Financial and other material information regarding the Fund is routinely posted on and accessible at https://www.brookfieldoaktree.com/fund/brookfield-real-assets-income-fund-inc

Contact information:

Investing involves risk; principal loss is possible.

A fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Read the prospectus carefully before investing.

Brookfield Real Assets Income Fund Inc. is distributed by Foreside Fund Services, LLC.

Quasar Distributors, LLC, provides filing administration for Brookfield Real Assets Income Fund Inc.

The MIL Network –

January 25, 2025

MIL-OSI: Update: Eagle Bancorp, Inc. Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

BETHESDA, Md., Oct. 23, 2024 (GLOBE NEWSWIRE) — Eagle Bancorp, Inc. (“Eagle”, the “Company”) (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the third quarter ended September 30, 2024.

Eagle reported net income of $21.8 million or $0.72 per share for the third quarter 2024, compared to a net loss of $83.8 million during the second quarter in which the Company recorded a $104.2 million impairment in the value of goodwill. Operating net income¹ in the second quarter, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per share per diluted share. Pre-provision net revenue (“PPNR”)¹ in the third quarter was $35.2 million compared to a pre-provision net loss of $69.8 million for the prior quarter, or $34.4 million of PPNR when adjusted to exclude the impairment charge on goodwill¹.

The $1.4 million increase in operating net income¹ over the prior quarter is attributed to a positive variance of $2.2 million related to the change in provision for unfunded commitments; $1.6 million increase in non-interest income; and a $490 thousand increase in net interest income, offset by a $1.3 million increase in operating non-interest expense, adjusted to exclude the impairment charge on goodwill, and a $1.1 million increase in provision for credit losses.

“We continue to strategically position the Company for future growth as evidenced by actions taken during the quarter with the refinancing of our maturing subordinated debt and the recalibration of our common dividend strategy,” said Susan G. Riel, President and Chief Executive Officer of the Company. “We announced the addition of Evelyn Lee to our senior leadership as our Chief Lending Officer for our commercial lending team. As a 25 year banker in the Washington D.C. market, I am excited about accomplishing our strategic goal of continuing to build out our commercial banker group and pursuing diversification of the loan portfolio and growing our relationship deposits,” added Ms. Riel.

Eric R. Newell, Chief Financial Officer of the Company said, “Raising senior debt in the third quarter demonstrates the confidence debt investors have in our vision and the future of the Company. Operating performance was stable from last quarter evidenced by operating net income¹ increasing $1.4 million to $21.8 million in the third quarter. We continued to build our reserve for credit losses, with coverage as a percentage of total held for investment loans at 1.40% increasing 7 basis points from last quarter. Common equity tier one capital increased to 14.5% and our tangible common equity¹ ratio exceeds 10%.”

Ms. Riel added, “I thank all of our employees for their hard work and their commitment to a culture of respect, diversity and inclusion in both the workplace and the communities we serve.”

Third Quarter 2024 Highlights

The Company repaid $70 million of maturing subordinated debt and issued $77.7 million of 10% unsecured senior debt maturing September 30, 2029.
During the quarter, the Company announced a recalibration of the common stock dividend to $0.165 per share from $0.45 per share in the second quarter an action estimated to retain an additional $32 million of capital annually to meet growth and investment objectives.
The ACL as a percentage of total loans held for investment was 1.40% at quarter-end; up from 1.33% at the prior quarter-end. Performing office coverage² was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Nonperforming assets increased $38.2 million to $137.1 million as of September 30, 2024 and were 1.22% of total assets compared to 0.88% as of June 30, 2024. Inflows to non-performing loans in the quarter totaled $45.5 million offset by $9 million of outflows, of which $5 million was the loan held for sale at June 30, 2024 and an increase of other real estate owned of $2.0 million. The inflows were predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
Substandard loans declined $17.0 million to $391.3 million and special mention loans increased $57.1 million to $365.0 million at September 30, 2024.
Net charge-offs for the third quarter were 0.26% compared to 0.11% for the second quarter 2024. Of the total $5.3 million of net charge offs in the quarter, $3.8 million is associated with a senior living property that has not stabilized.
The net interest margin (“NIM”) decreased slightly to 2.37% for the third quarter 2024, compared to 2.40% for the prior quarter, primarily due to continued decline in average non-interest bearing deposits. Net interest income increased $490 thousand from the second quarter to $71.8 million in the third quarter.
At quarter-end, the common equity ratio, tangible common equity ratio¹, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.86%, 10.86%, and 14.54%, respectively.
Total estimated insured deposits at quarter-end were $6.4 billion, or 74.5% of deposits, stable from the second quarter total of 72.5% of deposits.
Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end compared to $4.0 billion at June 30, 2024.

Income Statement

Net interest income was $71.8 million for the third quarter 2024, compared to $71.4 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and average loans partially offset by higher average interest-bearing deposits and higher rates paid on those deposits in the third quarter from the prior quarter.
Provision for credit losses was $10.1 million for the third quarter 2024, compared to $9.0 million for the prior quarter. The increase in the provision quarter over quarter reflects higher net charge-offs in the third quarter from the prior quarter. Reserve for unfunded commitments was a reversal of $1.6 million due to lower unfunded commitments in our construction portfolio. This compared to a reserve for unfunded commitments in the prior quarter of $0.6 million.
Noninterest income was $6.95 million for the third quarter 2024, compared to $5.33 million for the prior quarter. The primary driver for the increase was higher swap fee income.
Noninterest expense was $43.6 million for the third quarter 2024, compared to $146.5 million for the prior quarter. The decrease over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. When excluding the goodwill impairment charge, the increase quarter over quarter was associated with increased FDIC insurance expense.

Loans and Funding

Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.
At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.

Total deposits at quarter-end were $8.5 billion, up $273.5 million, or 3.3%, from the prior quarter-end. The increase was primarily attributable to an increase in time deposits from the company’s digital acquisition channel. Period end deposits have increased $165 million when compared to prior year comparable period end of September 30, 2023.
Other short-term borrowings were $1.2 billion at September 30, 2024, down 25.3% from the prior quarter-end as maturing FHLB borrowings were paid down with increased cash from deposits.

Asset Quality

Allowance for credit losses was 1.40% of total loans held for investment at September 30, 2024, compared to 1.33% at the prior quarter-end. Performing office coverage was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
Net charge-offs were $5.3 million for the quarter compared to $2.3 million in the second quarter of 2024.
Nonperforming assets were $137.1 million at September 30, 2024.
- NPAs as a percentage of assets were 1.22% at September 30, 2024, compared to 0.88% at the prior quarter-end. At September 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $2.7 million. The increase in NPAs was predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
- Loans 30-89 days past due were $56.3 million at September 30, 2024, compared to $8.4 million at the prior quarter-end. Of the total increase, $25 million was brought current subsequent to quarter-end.

Capital

Total shareholders’ equity was $1.2 billion at September 30, 2024, up 4.8% from the prior quarter-end. The increase in shareholders’ equity of $56.0 million was primarily due to increased valuations of available-for-sale securities and an increase in retained earnings.
Book value per share and Tangible book value per share³ was $40.61, up $1.86 from the prior quarter-end.

Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended September 30, 2024 as compared to the three months ended June 30, 2024 and September 30, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the SEC.

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.

Conference call: Eagle Bancorp will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 2024 at 10:00 a.m. Eastern Time.

The listen-only webcast can be accessed at:

https://edge.media-server.com/mmc/p/79xpxyi2
For analysts who wish to participate in the conference call, please register at the following URL:
https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083

A replay of the conference call will be available on the Company’s website through November 7, 2024: https://www.eaglebankcorp.com/

Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “can,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including volatility in interest rates and interest rate policy; the current inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Interest Income
Interest and fees on loans	$	139,836		$	137,616		$	132,273
Interest and dividends on investment securities		12,578			12,405			13,732
Interest on balances with other banks and short-term investments		21,296			19,568			15,067
Interest on federal funds sold		103			142			77
Total interest income		173,813			169,731			161,149
Interest Expense
Interest on deposits		81,190			76,846			70,929
Interest on customer repurchase agreements		332			330			311
Interest on other short-term borrowings		20,448			21,202			18,152
Interest on long-term borrowings	$	—			—			1,038
Total interest expense		101,970			98,378			90,430
Net Interest Income		71,843			71,353			70,719
Provision for Credit Losses		10,094			8,959			5,644
Provision (Reversal) for Credit Losses for Unfunded Commitments		(1,593	)		608			(839	)
Net Interest Income After Provision for Credit Losses		63,342			61,786			65,914

Noninterest Income
Service charges on deposits		1,747			1,653			1,631
Gain on sale of loans		20			37			(5	)
Net gain on sale of investment securities		3			3			5
Increase in cash surrender value of bank-owned life insurance		731			709			669
Other income		4,450			2,930			4,047
Total noninterest income		6,951			5,332			6,347
Noninterest Expense
Salaries and employee benefits		21,675			21,770			21,549
Premises and equipment expenses		2,794			2,894			3,095
Marketing and advertising		1,588			1,662			768
Data processing		3,435			3,495			3,194
Legal, accounting and professional fees		3,433			2,705			2,162
FDIC insurance		7,399			5,917			3,342
Goodwill impairment		—			104,168			—
Other expenses		3,290			3,880			3,523
Total noninterest expense		43,614			146,491			37,633
(Loss) Income Before Income Tax Expense		26,679			(79,373	)		34,628
Income Tax Expense		4,864			4,429			7,245
Net (Loss) Income	$	21,815		$	(83,802	)	$	27,383

(Loss) Earnings Per Common Share
Basic	$	0.72		$	(2.78	)	$	0.91
Diluted	$	0.72		$	(2.78	)	$	0.91

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
	September 30,			June 30,			September 30,
		2024			2024			2023
Assets
Cash and due from banks	$	16,383		$	10,803		$	8,625
Federal funds sold		9,610			5,802			13,611
Interest-bearing deposits with banks and other short-term investments		584,491			526,228			235,819
Investment securities available-for-sale at fair value (amortized cost of $1,550,038, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively)		1,433,006			1,584,435			1,474,945
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,237, $2,012 and $2,010, respectively (fair value of $868,425, $856,275 and $923,313, respectively)		961,925			982,955			1,032,485
Federal Reserve and Federal Home Loan Bank stock		37,728			54,274			25,689
Loans held for sale		—			5,000			—
Loans		7,970,269			8,001,739			7,916,391
Less: allowance for credit losses		(111,867	)		(106,301	)		(83,332	)
Loans, net		7,858,402			7,895,438			7,833,059
Premises and equipment, net		8,291			8,788			11,216
Operating lease right-of-use assets		15,167			16,250			20,151
Deferred income taxes		74,381			86,236			98,987
Bank-owned life insurance		115,064			114,333			112,234
Goodwill and intangible assets, net		21			129			105,239
Other real estate owned		2,743			773			1,487
Other assets		167,840			174,396			190,667
Total Assets	$	11,285,052		$	11,465,840		$	11,164,214
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing demand	$	1,609,823		$	1,693,955		$	2,072,665
Interest-bearing transaction		903,300			1,123,980			932,779
Savings and money market		3,316,819			3,165,314			3,129,773
Time deposits		2,710,908			2,284,099			2,241,089
Total deposits		8,540,850			8,267,348			8,376,306
Customer repurchase agreements		32,040			39,220			25,689
Other short-term borrowings		1,240,000			1,659,979			1,300,001
Long-term borrowings		75,812			—			69,887
Operating lease liabilities		18,755			20,016			24,422
Reserve for unfunded commitments		5,060			6,653			6,183
Other liabilities		147,111			139,348			145,842
Total Liabilities		10,059,628			10,132,564			9,948,330
Shareholders’ Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,173,200 30,180,482, and 30,185,732, respectively		298			297			296
Additional paid-in capital		382,284			380,142			372,394
Retained earnings		967,019			949,863			1,054,699
Accumulated other comprehensive loss		(124,177	)		(160,843	)		(211,505	)
Total Shareholders’ Equity		1,225,424			1,169,459			1,215,884
Total Liabilities and Shareholders’ Equity	$	11,285,052		$	11,302,023		$	11,164,214

Loan Mix and Asset Quality (Dollars in thousands)

	September 30,					June 30,					September 30,
		2024					2024					2023
	Amount		%			Amount		%			Amount		%
Loan Balances – Period End:
Commercial	$	1,154,349		14	%	$	1,238,261		15	%	$	1,418,760		18	%
PPP loans		348		—	%		407		—	%		588		—	%
Income producing – commercial real estate		4,155,120		52	%		4,217,525		53	%		4,147,301		52	%
Owner occupied – commercial real estate		1,276,240		16	%		1,263,714		16	%		1,182,959		15	%
Real estate mortgage – residential		57,223		1	%		61,338		1	%		76,511		1	%
Construction – commercial and residential		1,174,591		15	%		1,063,764		13	%		904,282		11	%
Construction – C&I (owner occupied)		100,662		1	%		99,526		1	%		129,616		2	%
Home equity		51,567		1	%		52,773		1	%		53,917		1	%
Other consumer		169		—	%		4,431		—	%		2,457		—	%
Total loans	$	7,970,269		100	%	$	8,001,739		100	%	$	7,916,391		100	%

	Three Months Ended or As Of
	September 30,		June 30,		September 30,
		2024		2024		2023
Asset Quality:
Net charge-offs	$	5,303	$	2,285	$	340
Nonperforming loans	$	134,371	$	98,169	$	70,148
Other real estate owned	$	2,743	$	773	$	1,757
Nonperforming assets	$	137,114	$	98,942	$	71,905
Special mention	$	364,983	$	307,906	$	158,182
Substandard	$	391,301	$	408,311	$	219,001

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended
	September 30, 2024								June 30, 2024
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,455,007		$	19,568		5.41	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		8,045			100		5.00	%
Loans ^{(1) (2)}	$	8,026,524			139,835		6.93	%		8,003,206			137,516		6.91	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,478,856			7,048		1.92	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		995,274			5,357		2.16	%
Federal funds sold		10,003			103		4.10	%		13,058			142		4.37	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,953,446		$	169,731		5.71	%
Total noninterest earning assets		397,006								510,725
Less: allowance for credit losses		(108,998	)							(102,671	)
Total noninterest earning assets		288,008								408,054
TOTAL ASSETS	$	12,360,899							$	12,361,500

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,636,795		$	16,100		3.96	%
Savings and money market		3,254,128			34,896		4.27	%		3,321,001			33,451		4.05	%
Time deposits		2,517,944			31,698		5.01	%		2,215,693			27,295		4.95	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		7,173,489			76,846		4.31	%
Customer repurchase agreements		38,045			332		3.47	%		38,599			330		3.44	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,682,684			21,202		5.07	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,894,772		$	98,378		4.45	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,051,777
Other liabilities		160,272								151,324
Total noninterest bearing liabilities		2,075,938								2,203,101
Shareholders’ equity		1,201,477								1,263,627
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	12,361,500
Net interest income				$	71,843							$	71,353
Net interest spread							1.26	%							1.26	%
Net interest margin							2.37	%							2.40	%
Cost of funds							3.69	%							3.61	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.8 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended September 30,
		2024								2023
	Average Balance			Interest		Average Yield/Rate			Average Balance			Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest bearing deposits with other banks and other short-term investments	$	1,577,464		$	21,296		5.37	%	$	1,127,451		$	15,067		5.30	%
Loans held for sale ⁽¹⁾		4,936			1		0.08	%		—			—		—	%
Loans ^{(1) (2)}		8,026,524			139,835		6.93	%		7,795,144			132,273		6.73	%
Investment securities available-for-sale ⁽²⁾		1,479,598			7,336		1.97	%		1,554,348			8,126		2.07	%
Investment securities held-to-maturity ⁽²⁾		974,366			5,242		2.14	%		1,047,515			5,606		2.12	%
Federal funds sold		10,003			103		4.10	%		7,728			77		3.95	%
Total interest earning assets		12,072,891		$	173,813		5.73	%		11,532,186		$	161,149		5.54	%
Total noninterest earning assets		397,006								489,683
Less: allowance for credit losses		(108,998	)							(78,964	)
Total noninterest earning assets		288,008								410,719
TOTAL ASSETS	$	12,360,899							$	11,942,905

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest bearing transaction	$	1,656,676		$	14,596		3.51	%	$	1,421,522		$	12,785		3.57	%
Savings and money market		3,254,128			34,896		4.27	%		3,113,755			32,855		4.19	%
Time deposits		2,517,944			31,698		5.01	%		2,162,582			25,289		4.64	%
Total interest bearing deposits		7,428,748			81,190		4.35	%		6,697,859			70,929		4.20	%
Customer repurchase agreements		38,045			332		3.47	%		36,082			311		3.42	%
Other short-term borrowings		1,615,867			20,448		5.03	%		1,610,097			19,190		4.73	%
Long-term borrowings		824			—		—	%		—			—		—	%
Total interest bearing liabilities		9,083,484		$	101,970		4.47	%		8,344,038		$	90,430		4.30	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,915,666								2,248,782
Other liabilities		160,272								114,923
Total noninterest bearing liabilities		2,075,938								2,363,705
Shareholders’ equity		1,201,477								1,235,162
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	12,360,899							$	11,942,905
Net interest income				$	71,843							$	70,719
Net interest spread							1.26	%							1.24	%
Net interest margin							2.37	%							2.43	%
Cost of funds							3.69	%							3.39	%

(1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively.
(2) Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			June 30,			March 31,			December 31,
Income Statements:		2024			2024			2024			2023			2023			2023			2023			2022
Total interest income	$	173,813		$	169,731		$	175,602		$	167,421		$	161,149		$	156,510		$	140,247		$	129,130
Total interest expense		101,970			98,378			100,904			94,429			90,430			84,699			65,223			43,530
Net interest income		71,843			71,353			74,698			72,992			70,719			71,811			75,024			85,600
Provision (reversal) for credit losses		10,094			8,959			35,175			14,490			5,644			5,238			6,164			(464	)
Provision (reversal) for credit losses for unfunded commitments		(1,593	)		608			456			(594	)		(839	)		318			848			161
Net interest income after provision for (reversal of) credit losses		63,342			61,786			39,067			59,096			65,914			66,255			68,012			85,903
Noninterest income before investment gain (loss)		6,948			5,329			3,585			2,891			6,342			8,593			3,721			5,326
Net gain (loss) on sale of investment securities		3			3			4			3			5			2			(21	)		3
Total noninterest income		6,951			5,332			3,589			2,894			6,347			8,595			3,700			5,329
Salaries and employee benefits		21,675			21,770			21,726			18,416			21,549			21,957			24,174			23,691
Premises and equipment expenses		2,794			2,894			3,059			2,967			3,095			3,227			3,317			3,292
Marketing and advertising		1,588			1,662			859			1,071			768			884			636			1,290
Goodwill impairment		—			104,168			—			—			—			—			—			—
Other expenses		17,557			15,997			14,353			14,644			12,221			11,910			12,457			10,645
Total noninterest expense		43,614			146,491			39,997			37,098			37,633			37,978			40,584			38,918
(Loss) income before income tax expense		26,679			(79,373	)		2,659			24,892			34,628			36,872			31,128			52,314
Income tax expense		4,864			4,429			2,997			4,667			7,245			8,180			6,894			10,121
Net (loss) income	$	21,815		$	(83,802	)	$	(338	)	$	20,225		$	27,383		$	28,692		$	24,234		$	42,193
Per Share Data:
(Loss) earnings per weighted average common share, basic	$	0.72		$	(2.78	)	$	(0.01	)	$	0.68		$	0.91		$	0.94		$	0.78		$	1.32
(Loss) earnings per weighted average common share, diluted	$	0.72		$	(2.78	)	$	(0.01	)	$	0.67		$	0.91		$	0.94		$	0.78		$	1.32
Weighted average common shares outstanding, basic		30,173,852			30,185,609			30,068,173			29,925,557			29,910,218			30,454,766			31,109,267			31,819,631
Weighted average common shares outstanding, diluted		30,241,699			30,185,609			30,068,173			29,966,962			29,944,692			30,505,468			31,180,346			31,898,619
Actual shares outstanding at period end		30,173,200			30,180,482			30,185,732			29,925,612			29,917,982			29,912,082			31,111,647			31,346,903
Book value per common share at period end	$	40.61		$	38.75		$	41.72		$	42.58		$	40.64		$	40.78		$	39.92		$	39.18
Tangible book value per common share at period end ⁽¹⁾	$	40.61		$	38.74		$	38.26		$	39.08		$	37.12		$	37.29		$	36.57		$	35.86
Dividend per common share	$	0.165		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45		$	0.45
Performance Ratios (annualized):
Return on average assets		0.70	%		(2.73	)%		(0.01	)%		0.65	%		0.91	%		0.96	%		0.86	%		1.49	%
Return on average common equity		7.22	%		(26.67	)%		(0.11	)%		6.48	%		8.80	%		9.24	%		7.92	%		13.57	%
Return on average tangible common equity ⁽¹⁾		7.22	%		(28.96	)%		(0.11	)%		7.08	%		9.61	%		10.08	%		8.65	%		14.82	%
Net interest margin		2.37	%		2.40	%		2.43	%		2.45	%		2.43	%		2.49	%		2.77	%		3.14	%
Efficiency ratio ⁽²⁾		55.4	%		191.0	%		51.1	%		48.9	%		48.8	%		47.2	%		51.6	%		42.8	%
Other Ratios:
Allowance for credit losses to total loans ⁽³⁾		1.40	%		1.33	%		1.25	%		1.08	%		1.05	%		1.00	%		1.01	%		0.97	%
Allowance for credit losses to total nonperforming loans		83	%		110	%		109	%		131	%		119	%		268	%		1,160	%		1,151	%
Nonperforming assets to total assets		1.22	%		0.88	%		0.79	%		0.57	%		0.64	%		0.28	%		0.08	%		0.08	%
Net charge-offs (recoveries) (annualized) to average total loans ⁽³⁾		0.26	%		0.11	%		1.07	%		0.60	%		0.02	%		0.29	%		0.05	%		0.05	%
Tier 1 capital (to average assets)		10.94	%		10.58	%		10.26	%		10.73	%		10.96	%		10.84	%		11.42	%		11.63	%
Total capital (to risk weighted assets)		15.74	%		15.07	%		14.87	%		14.79	%		14.54	%		14.51	%		14.74	%		14.94	%
Common equity tier 1 capital (to risk weighted assets)		14.54	%		13.92	%		13.80	%		13.90	%		13.68	%		13.55	%		13.75	%		14.03	%
Tangible common equity ratio ⁽¹⁾		10.86	%		10.35	%		10.03	%		10.12	%		10.04	%		10.21	%		10.36	%		10.18	%
Average Balances (in thousands):
Total assets	$	12,360,899		$	12,361,500		$	12,784,470		$	12,283,303		$	11,942,905		$	11,960,111		$	11,426,056		$	11,255,956
Total earning assets	$	12,072,891		$	11,953,446		$	12,365,497		$	11,837,722		$	11,532,186		$	11,546,050		$	11,004,817		$	10,829,703
Total loans ⁽³⁾	$	8,026,524		$	8,003,206		$	7,988,941		$	7,963,074		$	7,795,144		$	7,790,555		$	7,712,023		$	7,379,198
Total deposits	$	9,344,414		$	9,225,266		$	9,501,661		$	9,471,369		$	8,946,641		$	8,514,938		$	8,734,125		$	9,524,139
Total borrowings	$	1,654,736		$	1,721,283		$	1,832,947		$	1,401,917		$	1,646,179		$	2,102,507		$	1,359,463		$	411,060
Total shareholders’ equity	$	1,201,477		$	1,263,627		$	1,289,656		$	1,238,763		$	1,235,162		$	1,245,647		$	1,240,978		$	1,233,705

(1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3) Excludes loans held for sale.

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)

	September 30,			June 30,			September 30,
		2024			2024			2023
Tangible common equity
Common shareholders’ equity	$	1,225,424		$	1,169,459		$	1,215,884
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible common equity	$	1,225,403		$	1,169,330		$	1,110,645

Tangible common equity ratio
Total assets	$	11,285,052		$	11,302,023		$	11,164,214
Less: Intangible assets		(21	)		(129	)		(105,239	)
Tangible assets	$	11,285,031		$	11,301,894		$	11,058,975

Tangible common equity ratio		10.86	%		10.35	%		10.04	%

Per share calculations
Book value per common share	$	40.61		$	38.75		$	40.64
Less: Intangible book value per common share		—			(0.01	)		(3.52	)
Tangible book value per common share	$	40.61		$	38.74		$	37.12

Shares outstanding at period end		30,173,200			30,180,482			29,917,982

	Three Months Ended
	September 30,			June 30,			September 30,
		2024			2024			2023
Average tangible common equity
Average common shareholders’ equity	$	1,201,477		$	1,263,627		$	1,235,162
Less: Average intangible assets		(24	)		(99,827	)		(104,639	)
Average tangible common equity	$	1,201,453		$	1,163,800		$	1,130,523

Return on average tangible common equity
Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Return on average tangible common equity		7.22	%	(28.96)%				9.61	%

Net (loss) income	$	21,815		$	(83,802	)	$	27,383
Add back of goodwill impairment	$	—			104,168			—
Operating net (loss) income (Non-GAAP)		21,815			20,366			27,383
Operating Return on average tangible common equity (Non-GAAP)		7.22	%		7.04	%		9.61	%

Efficiency ratio
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Operating revenue	$	78,794		$	76,685		$	77,066
Noninterest expense	$	43,614		$	146,491		$	37,633
Add back of goodwill impairment		—			(104,168	)		—
Operating Noninterest expense (Non-GAAP)		43,614			42,323			37,633

Efficiency ratio		55.35	%		191.03	%		48.83	%
Operating Efficiency ratio (Non-GAAP)		55.35	%		55.19	%		48.83	%

Pre-provision net revenue
Net interest income	$	71,843		$	71,353		$	70,719
Noninterest income		6,951			5,332			6,347
Less: Noninterest expense		(43,614	)		(146,491	)		(37,633	)
Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433

Pre-provision net revenue	$	35,180		$	(69,806	)	$	39,433
Add back of goodwill impairment	$	—		$	104,168		$	—
Operating Pre-provision net revenue (Non-GAAP)	$	35,180		$	34,362		$	39,433

Tangible common equity, tangible common equity to tangible assets (the “tangible common equity ratio”), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders’ equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders’ equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

	Three Months Ended
	September 30,		June 30,			September 30,
		2024		2024			2023
Net (loss) income	$	21,815	$	(83,802	)	$	27,383
Add back of goodwill impairment		—		104,168			—
Operating Net (loss) income (Non-GAAP)	$	21,815	$	20,366		$	27,383

(Loss) earnings per share (diluted)⁴	$	0.72	$	(2.78	)	$	0.91
Add back of goodwill impairment per share (diluted)		—		3.45			—
Operating earnings (loss) per share (diluted) (Non-GAAP)	$	0.72	$	0.67		$	0.91

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management’s evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company’s goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company’s performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

_______________¹ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
²Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
³ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
⁴ For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

EAGLE BANCORP, INC.
CONTACT:
Eric R. Newell
240.497.1796

For the September 30, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/d55e221f-6ef9-45bd-8784-011bf19dce58

The MIL Network –

January 25, 2025

MIL-OSI: SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of Sandy Spring Bancorp, Inc. – SASR

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Sandy Spring Bancorp, Inc. (Nasdaq: SASR), relating to a proposed merger with Atlantic Union Bankshares Corp. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 Atlantic Union shares, and cash in lieu of fractional shares.

Click here for more information https://monteverdelaw.com/case/sandy-spring-bancorp-inc/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?
When was the last time you recovered money for shareholders?
What cases did you recover money in and how much?

About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court.

No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
jmonteverde@monteverdelaw.com
Tel: (212) 971-1341

Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

The MIL Network –

January 25, 2025

MIL-OSI: STOCKHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of SecureWorks Corp. – SCWX

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating SecureWorks Corp. (Nasdaq: SCWX), relating to a proposed merger with Sophos Inc. Under the terms of the agreement, all SecureWorks shares will automatically be converted into the right to receive $8.50 in cash.

Click here for more information https://monteverdelaw.com/case/secureworks-corp/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?
When was the last time you recovered money for shareholders?
What cases did you recover money in and how much?

About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court.

No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
jmonteverde@monteverdelaw.com
Tel: (212) 971-1341

Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

The MIL Network –

January 25, 2025

MIL-OSI: ChampionX Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Revenue of $906.5 million
Net income attributable to ChampionX of $72.0 million
Adjusted net income of $85.9 million
Adjusted EBITDA of $197.5 million
Income before income taxes margin of 11.2%
Adjusted EBITDA margin of 21.8%
Cash from operating activities of $141.3 million and free cash flow of $108.1 million

THE WOODLANDS, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced third quarter of 2024 results. Revenue was $906.5 million, net income attributable to ChampionX was $72.0 million, and adjusted EBITDA was $197.5 million. Income before income taxes margin was 11.2% and adjusted EBITDA margin was 21.8%. Cash from operating activities was $141.3 million and free cash flow was $108.1 million.

CEO Commentary

“The third quarter demonstrated the resiliency of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated robust free cash flow. These results were the direct result of our employees around the world remaining laser-focused on serving our customers well, and I am grateful to them for their dedication to our corporate purpose of improving lives,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the third quarter of 2024, we generated revenue of $907 million, which decreased 4% year-over-year, as growth in North America, Middle East & Africa, Europe, and Asia Pacific was offset by Latin America, which was impacted by lower sales in Mexico. Revenue from all areas other than Mexico increased 6% year-over-year. Our revenue increased 1% sequentially, with both North America and international revenues increasing slightly versus the second quarter. North America revenues were up 2% sequentially, driven primarily by higher sales volumes in our artificial lift business. International revenues were up 1% sequentially, driven, in part, by the contribution of RMSpumptools, which was acquired during the quarter. We generated net income attributable to ChampionX of $72 million, income before income taxes margin of 11.2%, and we delivered adjusted EBITDA of $198 million, representing a 21.8% adjusted EBITDA margin, our highest level as ChampionX, which speaks to the productivity and profitability focus of our team.

“Cash flow from operating activities was $141 million during the third quarter, which represented 196% of net income attributable to ChampionX, and we generated strong free cash flow of $108 million, which represented 55% of our adjusted EBITDA for the period. We remain confident in achieving at least 50% adjusted EBITDA to free cash flow conversion for 2024. Our balance sheet and financial position remain strong, ending the third quarter with approximately $1.1 billion of liquidity, including $389 million of cash and $671 million of available capacity on our revolving credit facility.”

Agreement to be Acquired by SLB

On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions. It is currently anticipated that the closing of the transaction will occur in the first quarter of 2025.

ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its third quarter 2024 results.

Production Chemical Technologies

Production Chemical Technologies revenue in the third quarter of 2024 was $559.5 million, a decrease of $10.0 million, or 2%, sequentially, due primarily to lower international sales volumes.

Segment operating profit was $87.3 million and adjusted segment EBITDA was $120.6 million. Segment operating profit margin was 15.6%, an increase of 60 basis points, sequentially, and adjusted segment EBITDA margin was 21.6%, an increase of 94 basis points, sequentially. The sequential increase in segment operating profit margin and adjusted segment EBITDA margin was driven by strong cost management, productivity improvements, and favorable product mix.

Production & Automation Technologies

Production & Automation Technologies revenue in the third quarter of 2024 was $275.7 million, an increase of $31.2 million, or 13%, sequentially, due primarily to higher artificial lift systems demand in North America, and the acquisition of RMSpumptools, which was completed during the quarter. Revenue from digital products was $57.9 million in the third quarter of 2024, an increase of 7% sequentially, driven by increased customer activity in North America.

Segment operating profit was $34.1 million and adjusted segment EBITDA was $69.6 million. Segment operating profit margin was 12.4%, an increase of 330 basis points, sequentially, and adjusted segment EBITDA margin was 25.2%, an increase of 118 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes, productivity improvements, and favorable product mix.

Drilling Technologies

Drilling Technologies revenue in the third quarter of 2024 was $51.8 million, a decrease of $1.1 million, or 2%, sequentially, driven by lower sales volumes in the bearings product line associated with customers managing inventory levels.

Segment operating profit was $11.5 million and adjusted segment EBITDA was $12.9 million. Segment operating profit margin was 22.2%, compared to 22.4% in the prior quarter, and adjusted segment EBITDA margin was 24.8%, a decrease of 2 basis points, sequentially, due primarily to lower volumes.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the third quarter 2024 was $20.5 million, a decrease of $6.6 million, or 24%, sequentially, driven by lower sales volumes in the U.S. and internationally.

Segment operating profit was $1.7 million and adjusted segment EBITDA was $3.3 million. Segment operating profit margin was 8.2%, a decrease of 793 basis points, sequentially, and adjusted segment EBITDA margin was 16.0%, a decrease of 592 basis points, sequentially. The decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower volumes.

Other Business Highlights

ChampionX won the Gulf Energy Information Excellence Award for best coating / corrosion advancement technology for its AnX coiled rod product line. The company was a finalist in four additional categories: SMARTEN™ XE ESP control system in the best controls, instrumentation, automation technology category; Pump Checker™ gas lift analysis module in the best digital transformation – upstream category; Chemical Technologies Decarbonization Program in the best HSE contribution category; and the ChampionX Diversity, Equality, and Inclusion programs in the DE&I in energy category.

Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

In the Asia Pacific region, ChampionX secured a significant new contract to provide both engineering services and the initial chemical supply for a new Floating Production Storage and Offloading (FPSO) unit, set to be deployed at a large gas condensate field in Australasia. Operations are scheduled to begin in the first half of 2025 and contribute significantly to regional Liquified Natural Gas (LNG) production capacity. This strategic win further strengthens our presence in the region and reinforces our commitment to delivering innovative, high-quality solutions to our upstream customers.
ChampionX was awarded a large first-fill contract to supply multiple production chemicals for corrosion inhibitors, scale inhibitors, and biocides for a major onshore oil and gas incremental project in Saudi Arabia.
ChampionX has secured a first-fill contract to supply production chemicals for a significant gas development program in Qatar.
ChampionX secured a multi-million-dollar order for a novel application of UltraFab in Carbon Capture, Utilization, and Storage (CCUS) for delivery in 2025.
ChampionX recently completed the pre-commission cleaning, chemical treatment, and readiness work for the 303-mile natural gas Mountain Valley Pipeline connecting Marcellus and Utica shale production to markets in the Mid- and South-Atlantic regions.
In the Canadian oil sands, ChampionX completed a steam additive first-fill program for a major technology development trial, leading to additional market interest.
ChampionX was awarded a three-year contract extension from a major producer in the San Juan Basin in California, recognizing our service, people, and commitment to helping the producer achieve their strategic goals as reasons for the extension.
As part of an initiative to expand our technology into adjacent markets, ChampionX Reservoir Chemical Technologies was awarded business with a premier supplier of local sand used for hydraulic fracturing in the Permian Basin. Our solution affords the supplier a significant savings on sand drying costs and is designed to increase operational throughput.

Other Business Highlights: Production & Automation Technologies

In the third quarter, ChampionX completed the acquisition of RMSpumptools, a provider of advanced mechanical and electrical solutions for complex ESP systems. The acquisition expands ChampionX’s international footprint while providing greater opportunities for RMSpumptools in North America. Soon after the acquisition close, our Permian ESP team collaborated with RMSpumptools to deliver a sand control solution to a major oil company operating in the Permian basin.
ChampionX Artificial Lift expanded its Latin America footprint into Ecuador with a contract award for two 400HP multiplex surface pump systems for jet lift applications. This accomplishment is the result of a strengthening partnership with a Latin America independent operator that is expanding its operations from Colombia to Ecuador. Unlike typical systems, the surface pump and oil vessel required for jet lifted wells will be built on one skid with all the necessary piping, which reduces assembly time at the wellsite.
Building on the combined strengths of our XSPOC artificial lift software and the acquisition of Artificial Lift Performance Limited Pump Checker software, ChampionX introduced ALLY™ production optimization digital solutions, debuting a modern interface with user-friendly dashboards and intuitive workflows, paired with powerful performance—ingesting, processing, and displaying more data than ever before. It is a one-stop-shop for production teams to manage and optimize their producing assets, regardless of lift type or equipment provider. Building on the launch of this new digital solution, in the third quarter ChampionX secured seven new clients for our production optimization software solution.
ChampionX launched the PCS Ferguson new generation SMARTEN™ Unify control system, which is engineered to deliver sophisticated digital automation and optimization capabilities at a cost of ownership that fits within the narrow economic profile of plunger lifted wells. SMARTEN Unify provides enhanced visibility to what is happening “live” at any second in a plunger lift system, eliminating the need for operating based on calculated guesses.

Other Business Highlights: Drilling Technologies

Drilling Technologies’ diamond bearings products continue to see positive test results in additional downhole drilling and completion tools applications.
Drilling Technologies’ diamond inserts business had significant new products launches with four major customers.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

About ChampionX

ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on January 24, 2024 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 6, 2024, and each of their respective, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s subsequent Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Investor Contact: Byron Pope
byron.pope@championx.com
281-602-0094

Media Contact: John Breed
john.breed@championx.com
281-403-5751

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(in thousands, except per share amounts)		2024			2024			2023			2024			2023
Revenue	$	906,533		$	893,272		$	939,783		$	2,721,946		$	2,814,730
Cost of goods and services		608,764			613,426			647,923			1,845,127			1,957,309
Gross profit		297,769			279,846			291,860			876,819			857,421
Costs and expenses:
Selling, general and administrative expense		180,501			182,995			162,317			535,910			485,617
(Gain) loss on sale-leaseback transaction and disposal group		57			—			—			(29,826	)		12,965
Interest expense, net		14,137			15,421			13,744			43,493			40,754
Foreign currency transaction (gains) losses, net		3,505			(2,767	)		7,992			793			21,683
Other expense (income), net		(2,176	)		938			(1,994	)		1,689			(13,494	)
Income before income taxes		101,745			83,259			109,801			324,760			309,896
Provision for income taxes		28,078			27,868			29,009			82,542			69,334
Net income		73,667			55,391			80,792			242,218			240,562
Net income attributable to noncontrolling interest		1,659			2,822			3,081			4,718			3,522
Net income attributable to ChampionX	$	72,008		$	52,569		$	77,711		$	237,500		$	237,040

Earnings per share attributable to ChampionX:
Basic	$	0.38		$	0.28		$	0.40		$	1.25		$	1.20
Diluted	$	0.37		$	0.27		$	0.39		$	1.23		$	1.18

Weighted-average shares outstanding:
Basic		190,496			190,426			195,881			190,575			197,058
Diluted		193,362			193,257			199,592			193,655			201,025

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands)	September 30, 2024			December 31, 2023
*ASSETS*
Current Assets:
Cash and cash equivalents	$	389,109		$	288,557
Receivables, net		434,107			534,534
Inventories, net		546,817			521,549
Prepaid expenses and other current assets		68,218			80,777
Total current assets		1,438,251			1,425,417

Property, plant and equipment, net		760,775			773,552
Goodwill		729,783			669,064
Intangible assets, net		270,361			243,553
Other non-current assets		178,490			130,116
Total assets	$	3,377,660		$	3,241,702

*LIABILITIES AND EQUITY*
Current Liabilities:
Current portion of long-term debt	$	6,203		$	6,203
Accounts payable		455,485			451,680
Other current liabilities		278,498			324,866
Total current liabilities		740,186			782,749

Long-term debt		592,161			594,283
Other long-term liabilities		246,296			203,639
Stockholders’ equity:
ChampionX stockholders’ equity		1,814,310			1,676,622
Noncontrolling interest		(15,293	)		(15,591	)
Total liabilities and equity	$	3,377,660		$	3,241,702

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Nine Months Ended September 30,
(in thousands)		2024			2023
Cash flows from operating activities:
Net income	$	242,218		$	240,562
Depreciation and amortization		183,291			177,226
(Gain) loss on sale-leaseback transaction and disposal group		(29,826	)		12,965
Loss on Argentina Blue Chip Swap transaction		7,086			—
Deferred income taxes		(16,810	)		(15,380	)
Loss (gain) on disposal of fixed assets		868			(1,480	)
Receivables		115,269			85,181
Inventories		(40,118	)		(50,011	)
Accounts payable		(30,577	)		(7,018	)
Other assets		6,665			17,470
Leased assets		(24,193	)		(38,597	)
Other operating items, net		(31,442	)		(49,600	)
Net cash flows provided by operating activities		382,431			371,318

Cash flows from investing activities:
Capital expenditures		(101,403	)		(110,965	)
Proceeds from sale of fixed assets		9,323			12,328
Proceeds from sale-leaseback transaction		44,292			—
Purchase of investments		(31,526	)		—
Sale of investments		24,358			—
Acquisitions, net of cash acquired		(123,269	)		—
Net cash used for investing activities		(178,225	)		(98,637	)

Cash flows from financing activities:
Proceeds from long-term debt		—			15,500
Repayment of long-term debt		(4,652	)		(43,625	)
Repurchases of common stock		(49,399	)		(159,730	)
Dividends paid		(52,430	)		(48,309	)
Other		3,854			(384	)
Net cash used for financing activities		(102,627	)		(236,548	)

Effect of exchange rate changes on cash and cash equivalents		(1,027	)		(1,314	)

Net increase in cash and cash equivalents		100,552			34,819
Cash and cash equivalents at beginning of period		288,557			250,187
Cash and cash equivalents at end of period	$	389,109		$	285,006

CHAMPIONX CORPORATION
BUSINESS SEGMENT DATA
(UNAUDITED)

	Three Months Ended
	September 30,			June 30,			September 30,
(in thousands)		2024			2024			2023
Segment revenue:
Production Chemical Technologies	$	559,539		$	569,577		$	604,254
Production & Automation Technologies		275,700			244,487			256,148
Drilling Technologies		51,792			52,888			54,869
Reservoir Chemical Technologies		20,531			27,123			25,093
Corporate and other		(1,029	)		(803	)		(581	)
Total revenue	$	906,533		$	893,272		$	939,783

Income before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	87,260		$	85,388		$	94,560
Production & Automation Technologies		34,136			22,207			28,299
Drilling Technologies		11,501			11,863			12,255
Reservoir Chemical Technologies		1,675			4,363			2,461
Total segment operating profit		134,572			123,821			137,575
Corporate and other		18,690			25,141			14,030
Interest expense, net		14,137			15,421			13,744
Income before income taxes	$	101,745		$	83,259		$	109,801

Operating profit margin / income before income taxes margin:
Production Chemical Technologies		15.6	%		15.0	%		15.6	%
Production & Automation Technologies		12.4	%		9.1	%		11.0	%
Drilling Technologies		22.2	%		22.4	%		22.3	%
Reservoir Chemical Technologies		8.2	%		16.1	%		9.8	%
ChampionX Consolidated		11.2	%		9.3	%		11.7	%

Adjusted EBITDA
Production Chemical Technologies	$	120,622		$	117,421		$	133,101
Production & Automation Technologies		69,604			58,848			59,288
Drilling Technologies		12,867			13,149			13,786
Reservoir Chemical Technologies		3,292			5,954			4,198
Corporate and other		(8,873	)		(12,139	)		(12,837	)
Adjusted EBITDA	$	197,512		$	183,233		$	197,536

Adjusted EBITDA margin
Production Chemical Technologies		21.6	%		20.6	%		22.0	%
Production & Automation Technologies		25.2	%		24.1	%		23.1	%
Drilling Technologies		24.8	%		24.9	%		25.1	%
Reservoir Chemical Technologies		16.0	%		22.0	%		16.7	%
ChampionX Consolidated		21.8	%		20.5	%		21.0	%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended
	September 30,			June 30,			September 30,
(in thousands)		2024			2024			2023
Net income attributable to ChampionX	$	72,008		$	52,569		$	77,711
Pre-tax adjustments:
(Gain) loss on sale leaseback transaction and disposal group⁽¹⁾		57			—			—
Russia sanctions compliance and impacts⁽²⁾		109			32			95
Restructuring and other related charges		5,317			7,927			1,228
Merger transaction costs⁽³⁾		8,312			15,059			—
Acquisition costs and related adjustments⁽⁴⁾		753			574			—
Intellectual property defense		69			531			220
Merger-related indemnification responsibility		—			—			722
Tulsa, Oklahoma storm damage		—			—			1,895
Foreign currency transaction (gains) losses, net		3,505			(2,767	)		7,992
Loss on Argentina Blue Chip Swap transaction		—			2,994			—
Tax impact of adjustments		(4,259	)		(5,722	)		(2,702	)
Adjusted net income attributable to ChampionX		85,871			71,197			87,161
Tax impact of adjustments		4,259			5,722			2,702
Net income attributable to noncontrolling interest		1,659			2,822			3,081
Depreciation and amortization		63,508			60,203			61,839
Provision for income taxes		28,078			27,868			29,009
Interest expense, net		14,137			15,421			13,744
Adjusted EBITDA	$	197,512		$	183,233		$	197,536

_______________________

⁽¹⁾	Amount represents the gain on the sale and leaseback of certain buildings and land.
⁽²⁾	Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.
⁽³⁾	Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.
⁽⁴⁾	Includes costs incurred for the acquisition of businesses.

	Three Months Ended
	September 30,			June 30,			September 30,
(in thousands)		2024			2024			2023
Diluted earnings per share attributable to ChampionX	$	0.37		$	0.27		$	0.39
Per share adjustments:
(Gain) loss on sale leaseback transaction and disposal group		—			—			—
Russia sanctions compliance and impacts		—			—			—
Restructuring and other related charges		0.03			0.04			0.01
Merger transaction costs		0.04			0.08			—
Acquisition costs and related adjustments		—			—			—
Intellectual property defense		—			—			—
Merger-related indemnification responsibility		—			—			0.01
Tulsa, Oklahoma storm damage		—			—			0.01
Foreign currency transaction (gains) losses, net		0.02			(0.01	)		0.04
Loss on Argentina Blue Chip Swap transaction		—			0.02			—
Tax impact of adjustments		(0.02	)		(0.03	)		(0.02	)
Adjusted diluted earnings per share attributable to ChampionX	$	0.44		$	0.37		$	0.44

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)

	Three Months Ended
	September 30,			June 30,			September 30,
(in thousands)		2024			2024			2023
Production Chemical Technologies
Segment operating profit	$	87,260		$	85,388		$	94,560
Non-GAAP adjustments		7,073			5,851			9,079
Depreciation and amortization		26,289			26,182			29,462
Segment adjusted EBITDA	$	120,622		$	117,421		$	133,101

Production & Automation Technologies
Segment operating profit	$	34,136		$	22,207		$	28,299
Non-GAAP adjustments		1,656			6,000			2,089
Depreciation and amortization		33,812			30,641			28,900
Segment adjusted EBITDA	$	69,604		$	58,848		$	59,288

Drilling Technologies
Segment operating profit	$	11,501		$	11,863		$	12,255
Non-GAAP adjustments		54			—			(8	)
Depreciation and amortization		1,312			1,286			1,539
Segment adjusted EBITDA	$	12,867		$	13,149		$	13,786

Reservoir Chemical Technologies
Segment operating profit	$	1,675		$	4,363		$	2,461
Non-GAAP adjustments		3			11			72
Depreciation and amortization		1,614			1,580			1,665
Segment adjusted EBITDA	$	3,292		$	5,954		$	4,198

Corporate and other
Segment operating profit	$	(32,827	)	$	(40,562	)	$	(27,774	)
Non-GAAP adjustments		9,336			12,488			920
Depreciation and amortization		481			514			273
Interest expense, net		14,137			15,421			13,744
Segment adjusted EBITDA	$	(8,873	)	$	(12,139	)	$	(12,837	)

Free Cash Flow

	Three Months Ended
	September 30,			June 30,			September 30,
(in thousands)		2024			2024			2023
Free Cash Flow
Cash flows from operating activities	$	141,298		$	67,625		$	163,030
Less: Capital expenditures, net of proceeds from sale of fixed assets		(33,248	)		(29,310	)		(48,469	)
Free cash flow	$	108,050		$	38,315		$	114,561

Cash From Operating Activities to Revenue Ratio
Cash flows from operating activities	$	141,298		$	67,625		$	163,030
Revenue	$	906,533		$	893,272		$	939,783

Cash from operating activities to revenue ratio		16	%		8	%		17	%

Free Cash Flow to Revenue Ratio
Free cash flow	$	108,050		$	38,315		$	114,561
Revenue	$	906,533		$	893,272		$	939,783

Free cash flow to revenue ratio		12	%		4	%		12	%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	108,050		$	38,315		$	114,561
Adjusted EBITDA	$	197,512		$	183,233		$	197,536

Free cash flow to adjusted EBITDA ratio		55	%		21	%		58	%

The MIL Network –

January 25, 2025

MIL-OSI: Brown & Brown, Inc. announces 15% increase in quarterly cash dividend rate

Source: GlobeNewswire (MIL-OSI)

DAYTONA BEACH, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE: BRO) today announced that the board of directors has declared a regular quarterly cash dividend of $0.15 per share. The dividend is payable on November 13, 2024, to shareholders of record on November 6, 2024. The dividend represents a 15% increase from the previous regular quarterly cash dividend of $0.13 per share and is Brown & Brown’s 31st consecutive annual dividend increase.

About Brown & Brown, Inc.

Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm, delivering risk management solutions to individuals and businesses since 1939. With over 16,000 teammates and 500+ locations worldwide, we are committed to providing innovative strategies to help protect what our customers value most. For more information or to find an office near you, please visit bbinsurance.com.

For more information:

R. Andrew Watts
Chief Financial Officer
(386) 239-5770

The MIL Network –

January 25, 2025

MIL-OSI: Parker Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

CLEVELAND, Oct. 23, 2024 (GLOBE NEWSWIRE) — Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that its Board of Directors has declared a regular quarterly cash dividend of $1.63 per share of common stock to shareholders of record as of November 8, 2024. The dividend is payable December 6, 2024.

This is the company’s 298^th consecutive quarterly dividend. Parker has increased its annual dividends per share paid to shareholders for 68 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 Index.

Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.

###

The MIL Network –

January 25, 2025

MIL-OSI: Bold Eagle Acquisition Corp., Led by Eagle Equity Partners’ Harry Sloan, Jeff Sagansky and Eli Baker, Announces Pricing of $250 million IPO

Source: GlobeNewswire (MIL-OSI)

Bold Eagle Will Feature a Warrantless Structure

Each Unit Includes One Class A Ordinary Share and
One Eagle Share Right to Receive 1/20th of a Class A Ordinary Share

Sponsor to Reduce Founder Shares in an Amount Equal to the Shares Underlying the Eagle Share Rights

NEW YORK, NY, Oct. 23, 2024 (GLOBE NEWSWIRE) — Bold Eagle Acquisition Corp. (the “Company”), the ninth public acquisition vehicle sponsored by Eagle Equity Partners, which is led by Harry Sloan, Jeff Sagansky and Eli Baker, today announced the pricing on October 23, 2024 of its initial public offering of 25,000,000 units at a price of $10.00 per unit. Each unit consists of one Class A ordinary share and one Eagle Share Right to receive one twentieth of one Class A ordinary share upon the consummation of an initial business combination. There are no warrants issued publicly or privately in connection with this offering and, after the closing of the initial public offering, the Company’s sponsor will reduce its founder shares in an amount equal to the Class A ordinary shares underlying the Eagle Share Rights. An amount equal to $10.00 per unit will be deposited into a trust account upon the closing of the offering. The units will be listed on the Nasdaq Global Market (“Nasdaq”) and trade under the ticker symbol “BEAGU” beginning on October 24, 2024. After the securities comprising the units begin separate trading, the Class A ordinary shares and Eagle Share Rights are expected to be listed on Nasdaq under the symbols “BEAG” and “BEAGR,” respectively. The offering is expected to close on October 25, 2024.

Bold Eagle Acquisition Corp. is a blank check company whose business purpose is to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company’s efforts to identify a prospective initial business combination target will not be limited to a particular industry, sector or geographic region. While the Company may pursue an initial business combination opportunity in any industry or sector, it intends to capitalize on the ability of its management team to identify and combine with a business or businesses that can benefit from its management team’s established global relationships and operating experience.

The Company’s sponsor is Eagle Equity Partners IV, LLC, of which Harry Sloan, Jeff Sagansky and Eli Baker are Managing Members. Harry Sloan and Jeff Sagansky are the Co-Chairmen of the Company. Joining Mr. Sloan and Mr. Sagansky in the management of the Company is Eli Baker, the Chief Executive Officer, who has served in various capacities in seven of Eagle Equity’s prior public acquisition vehicles, most recently as Chief Executive Officer of Screaming Eagle Acquisition Corp. Also joining Mr. Sloan, Mr. Sagansky and Mr. Baker in the management of the Company is Ryan O’Connor, the Chief Financial Officer, who previously served as the Vice President of Finance of Screaming Eagle Acquisition Corp.

UBS Investment Bank and Jefferies are acting as the representatives of the underwriters for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,750,000 units at the initial public offering price to cover over-allotments, if any.

The offering is being made only by means of a prospectus. When available, copies of the prospectus may be obtained from UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone at (888) 827-7275 or by email at ol-prospectusrequest@ubs.com or from Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone: 877-821-7388 or by email: Prospectus_Department@Jefferies.com.

A registration statement relating to these securities has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on October 23, 2024. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities 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.

Cautionary Note Concerning Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering and search for an initial business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement for the initial public offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

# # #

INVESTOR AND MEDIA CONTACT:

Ryan O’Connor
t. (424) 284-3519
e. roconnor@eaglesinvest.com

The MIL Network –

January 25, 2025

MIL-OSI: Northfield Bancorp, Inc. Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

NOTABLE ITEMS FOR THE QUARTER INCLUDE:

DILUTED EARNINGS PER SHARE WERE $0.16 FOR THE CURRENT QUARTER COMPARED TO $0.14 FOR THE TRAILING QUARTER, AND $0.19 FOR THE THIRD QUARTER OF 2023.
NET INTEREST MARGIN REMAINED RELATIVELY STABLE AT 2.08% FOR THE CURRENT QUARTER AS COMPARED TO 2.09% FOR THE TRAILING QUARTER.
AVERAGE YIELD ON INTEREST-EARNING ASSETS DECREASED ONE BASIS POINT TO 4.38%, WHILE THE AVERAGE COST OF INTEREST-BEARING LIABILITIES REMAINED STABLE AT 2.95% FOR THE CURRENT QUARTER AS COMPARED TO THE TRAILING QUARTER.
DEPOSITS (EXCLUDING BROKERED) DECREASED MODESTLY BY $5.1 MILLION, OR LESS THAN 1% ANNUALIZED, COMPARED TO JUNE 30, 2024, AND INCREASED $15.0 MILLION, OR 0.5% ANNUALIZED, FROM DECEMBER 31, 2023. COST OF DEPOSITS AT SEPTEMBER 30, 2024 WAS 2.07% AS COMPARED TO 2.10% AT JUNE 30, 2024.
LOAN BALANCES DECLINED BY $27.2 MILLION, OR 2.7% ANNUALIZED, FROM JUNE 30, 2024, WITH DECREASES IN COMMERCIAL, MULTIFAMILY AND RESIDENTIAL REAL ESTATE LOANS OFFSET BY INCREASES IN HOME EQUITY, CONSTRUCTION AND LAND, AND COMMERCIAL AND INDUSTRIAL LOANS.
ASSET QUALITY REMAINS STRONG DESPITE AN INCREASE IN NON-PERFORMING LOANS IN THE CURRENT QUARTER. NON-PERFORMING LOANS TO TOTAL LOANS WAS 0.75% AT SEPTEMBER 30, 2024 AND 0.42% AT JUNE 30, 2024.
THE COMPANY MAINTAINED STRONG LIQUIDITY WITH APPROXIMATELY $597 MILLION IN UNPLEDGED AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE-FOR-PLEDGE OF APPROXIMATELY $699 MILLION.
THE COMPANY REPURCHASED 560,683 SHARES FOR A COST OF $6.3 MILLION. THERE IS NO REMAINING CAPACITY UNDER THE CURRENT REPURCHASE PROGRAM.
CASH DIVIDEND DECLARED OF $0.13 PER SHARE OF COMMON STOCK, PAYABLE ON NOVEMBER 20, 2024, TO STOCKHOLDERS OF RECORD AS OF NOVEMBER 6, 2024.

WOODBRIDGE, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (the “Company”), the holding company for Northfield Bank, reported net income of $6.5 million, or $0.16 per diluted share for the three months ended September 30, 2024, compared to $6.0 million, or $0.14 per diluted share, for the three months ended June 30, 2024, and $8.2 million, or $0.19 per diluted share, for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net income totaled $18.7 million, or $0.45 per diluted share, compared to $29.4 million, or $0.67 per diluted share, for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, net income reflected $795,000, or $0.02 per share, of additional tax expense related to options that expired in June 2024, and $683,000, or $0.01 per share, of severance expense related to staffing realignments. For the nine months ended September 30, 2023, net income reflected $440,000, or $0.01 per share of severance expense. The decrease in net income for the nine months ended September 30, 2024, compared to the comparable prior year period was primarily the result of a decrease in net interest income, which was negatively impacted by higher funding costs, partially offset by improved interest and non-interest income.

Commenting on the quarter, Steven M. Klein, the Company’s Chairman, President and Chief Executive Officer stated, “In the third quarter, the Northfield team continued to focus on financial performance, serving the businesses and consumers in our marketplace, and improving upon our operating efficiencies.” Mr. Klein continued, “We delivered solid financial performance for the quarter, increasing our net income, and earnings per share, as we manage our strong capital levels, core deposit and loan relationships, asset quality, and operating expenses. While significant risks remain, the decrease in short-term market interest rates late in the third quarter should provide increased economic activity in our marketplace and opportunities for our Company.”

Mr. Klein further noted, “I am pleased to announce that the Board of Directors has declared a cash dividend of $0.13 per common share, payable on November 20, 2024 to stockholders of record on November 6, 2024.”

Results of Operations

Comparison of Operating Results for the Nine Months Ended September 30, 2024 and 2023

Net income was $18.7 million and $29.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Significant variances from the comparable prior year period are as follows: a $10.9 million decrease in net interest income, a $1.3 million increase in the provision for credit losses on loans, a $1.5 million increase in non-interest income, a $3.2 million increase in non-interest expense, and a $3.1 million decrease in income tax expense.

Net interest income for the nine months ended September 30, 2024, decreased $10.9 million, or 11.4%, to $84.8 million, from $95.7 million for the nine months ended September 30, 2023 due to a $34.8 million increase in interest expense, which was partially offset by a $23.9 million increase in interest income. The increase in interest expense was largely driven by the cost of interest-bearing liabilities, which increased by 96 basis points to 2.93% for the nine months ended September 30, 2024, from 1.97% for the nine months ended September 30, 2023, driven primarily by a 114 basis point increase in the cost of interest-bearing deposits from 1.42% to 2.56% for the nine months ended September 30, 2024, and a 31 basis point increase in the cost of borrowings from 3.58% to 3.89% due to rising market interest rates and a shift in the composition of the deposit portfolio towards higher-costing certificates of deposit and a greater reliance on borrowings. The increase in interest expense was also due to a $277.1 million, or 7.0%, increase in the average balance of interest-bearing liabilities, including an increase of $149.8 million in the average balance of borrowed funds and a $127.1 million increase in average interest-bearing deposits. The increase in interest income was primarily due to a $156.1 million, or 2.9%, increase in the average balance of interest-earning assets coupled with a 47 basis point increase in the yield on interest-earning assets, which increased to 4.35% for the nine months ended September 30, 2024, from 3.88% for the nine months ended September 30, 2023, due to the rising rate environment. The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of interest-earning deposits in financial institutions of $111.7 million, the average balance of other securities of $91.6 million, and the average balance of mortgage-backed securities of $88.5 million, partially offset by a decrease in the average balance of loans of $133.4 million.

Net interest margin decreased by 34 basis points to 2.07% for the nine months ended September 30, 2024, from 2.41% for the nine months ended September 30, 2023. The decrease in net interest margin was primarily due to interest-bearing liabilities repricing at a faster rate than interest-earning assets. The net interest margin was negatively affected by approximately 12 basis points due to a $300 million low risk leverage strategy implemented in the first quarter of 2024. In January 2024, the Company borrowed $300.0 million from the Federal Reserve Bank through the Bank Term Funding Program at favorable terms and conditions and invested the proceeds in interest-bearing deposits in other financial institutions and investment securities. The Company accreted interest income related to purchased credit-deteriorated (“PCD”) loans of $1.1 million for the nine months ended September 30, 2024, as compared to $1.0 million for the nine months ended September 30, 2023. Net interest income for the nine months ended September 30, 2024, included loan prepayment income of $648,000 as compared to $1.3 million for the nine months ended September 30, 2023.

The provision for credit losses on loans increased by $1.3 million to $2.3 million for the nine months ended September 30, 2024, compared to $1.1 million for the nine months ended September 30, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was related to a single commercial and industrial relationship totaling $12.5 million that experienced credit deterioration and was placed on non-accrual during the current quarter, which has a specific reserve of $1.3 million and incurred a charge-off of $878,000. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our Current Expected Credit Loss (“CECL”) model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial and home equity and lines of credit portfolios related to an increase in non-performing loans in these portfolios and higher loan balances. Net charge-offs were $4.7 million for the nine months ended September 30, 2024, primarily due to $3.9 million in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $5.2 million for the nine months ended September 30, 2023. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio, which totaled $31.0 million at September 30, 2024.

Non-interest income increased by $1.5 million, or 18.7%, to $9.8 million for the nine months ended September 30, 2024, compared to $8.3 million for the nine months ended September 30, 2023. The increase was primarily due to increases of $790,000 in fees and service charges for customer services, related to an increase in overdraft fees and service charges on deposit accounts, $260,000 in income on bank owned life insurance, and $874,000 in gains on trading securities, net. Partially offsetting the increases was a $303,000 decrease in other income, primarily due to lower swap fee income. Gains on trading securities in the nine months ended September 30, 2024, were $1.6 million, as compared to $723,000 in the nine months ended September 30, 2023. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the plan. The participants of this plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the plan.

Non-interest expense increased $3.2 million, or 5.2%, to $65.7 million for the nine months ended September 30, 2024, compared to $62.5 million for the nine months ended September 30, 2023. The increase was primarily due to a $3.3 million increase in employee compensation and benefits, primarily attributable to higher salary expense, related to annual merit increases and higher medical expense, and an increase of $874,000 in deferred compensation expense, which is described above, and had no effect on net income. Employee compensation and benefits expense also includes severance expense of $683,000 for the nine months ended September 30, 2024, as compared to $440,000 for the nine months ended September 30, 2023. During the second quarter of 2024, due to current economic conditions, the Company implemented a workforce reduction plan which included modest layoffs and staffing realignments. The annual estimated cost savings of this plan is $2.0 million, pre-tax. Partially offsetting the increase was a $461,000 decrease in stock compensation expense related to performance stock awards not expected to vest. Additionally, non-interest expense included a $727,000 increase in credit loss expense/(benefit) for off-balance sheet exposure due to a provision of $337,000 recorded during the nine months ended September 30, 2024, as compared to a benefit of $390,000 for the comparative prior year period. The benefit in the prior year period was attributable to a decrease in the pipeline of loans committed and awaiting closing. Partially offsetting the increases was a $552,000 decrease in advertising expense due to a change in marketing strategy and the timing of specific deposit and lending campaigns.

The Company recorded income tax expense of $7.9 million for the nine months ended September 30, 2024, compared to $11.0 million for the nine months ended September 30, 2023, with the decrease due to lower taxable income partially offset by a higher effective tax rate. The effective tax rate for the nine months ended September 30, 2024, was 29.7% compared to 27.2% for the nine months ended September 30, 2023. In June 2024, options granted in 2014 expired and resulted in additional tax expense of $795,000, contributing to the higher effective tax rate for the nine months ended September 30, 2024.

Comparison of Operating Results for the Three Months Ended September 30, 2024 and 2023

Net income was $6.5 million and $8.2 million for the quarters ended September 30, 2024 and September 30, 2023, respectively. Significant variances from the comparable prior year quarter are as follows: a $1.5 million decrease in net interest income, a $2.4 increase in the provision for credit losses on loans, a $1.5 million increase in non-interest income, a $189,000 decrease in non-interest expense, and a $513,000 decrease in income tax expense.

Net interest income for the quarter ended September 30, 2024, decreased $1.5 million, or 4.9%, to $28.2 million, from $29.7 million for the quarter ended September 30, 2023, due to an $8.0 million increase in interest expense, partially offset by an $6.6 million increase in interest income. The increase in interest expense was largely driven by the impact of rising market interest rates and a $227.0 million, or 5.7%, increase in the average balance of interest-bearing liabilities, including increases of $158.4 million and $68.4 million in the average balance of interest-bearing deposits and borrowed funds, respectively. The increase in interest income was primarily due to a $155.1 million, or 3.0%, increase in the average balance of interest-earning assets coupled with a 38 basis point increase in yields on interest-earning assets due to the rising rate environment. The increase in the average balance of interest-earning assets was due to increases in the average balance of mortgage-backed securities of $240.3 million, the average balance of other securities of $64.0 million, and the average balance of interest-earning deposits in financial institutions of $26.8 million, partially offset by decreases in the average balance of loans outstanding of $172.8 million and the average balance of Federal Home Loan Bank of New York stock of $3.2 million.

Net interest margin decreased by 17 basis points to 2.08% for the quarter ended September 30, 2024, from 2.25% for the quarter ended September 30, 2023, primarily due to the cost of interest-bearing liabilities increasing faster than the repricing of interest-earning assets. The cost of interest-bearing liabilities increased by 64 basis points to 2.95% for the quarter ended September 30, 2024, from 2.31% for the quarter ended September 30, 2023, driven primarily by a 77 basis point increase in the cost of interest-bearing deposits from 1.82% to 2.59%, and a 30 basis point increase in the cost of borrowings from 3.63% to 3.93%. The increase in the cost of interest-bearing liabilities was partially offset by an increase in the yield on interest-earning assets, which increased by 38 basis points to 4.38% for the quarter ended September 30, 2024, from 4.00% for the quarter ended September 30, 2023. Net interest income for the quarter ended September 30, 2024, included loan prepayment income of $87,000, as compared to $183,000 for the quarter ended September 30, 2023. The Company accreted interest income related to PCD loans of $327,000 for the quarter ended September 30, 2024, as compared to $325,000 for the quarter ended September 30, 2023.

The provision for credit losses on loans increased by $2.4 million to $2.5 million for the quarter ended September 30, 2024, from a provision of $188,000 for the quarter ended September 30, 2023, primarily due to an increase in the specific reserve component of the allowance for credit losses, which was partially offset by a decrease in the general reserve component of the allowance for credit losses. The increase in the specific reserve was related to a single commercial and industrial relationship that experienced credit deterioration and was placed on non-accrual during the current quarter, which has a specific reserve of $1.3 million and incurred a charge-off of $878,000. The decline in the general reserve component of the allowance for credit losses resulted from a decline in loan balances and an improvement in the macroeconomic forecast for the current period within our CECL model, partially offset by an increase in reserves related to changes in model assumptions, including the slowing of prepayment speeds, and an increase in reserves in the commercial and industrial portfolio related to an increase in non-performing loans and higher loan balances. Net charge-offs were $2.1 million for the quarter ended September 30, 2024, and included $1.4 million in net charge-offs on small business unsecured loans, as compared to net charge-offs of $2.9 million for the quarter ended September 30, 2023.

Non-interest income increased by $1.5 million, or 68.7%, to $3.6 million for the quarter ended September 30, 2024, from $2.1 million for the quarter ended September 30, 2023, primarily due to a $294,000 increase in fees and service charges, primarily related to higher overdraft fees, a $1.0 million increase in gains on trading securities, net, and a $185,000 increase in other income, primarily due to higher swap fee income. For the quarter ended September 30, 2024, gains on trading securities, net, were $710,000, compared to losses of $295,000 in the quarter ended September 30, 2023. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of, changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the Plan.

Non-interest expense decreased by $189,000, or 0.9%, to $20.4 million for the quarter ended September 30, 2024, from $20.6 million for the quarter ended September 30, 2023. The decrease was primarily due to decreases of $386,000 in occupancy expense, attributable to lower real estate taxes, common area maintenance and electricity costs, $214,000 in data processing costs, attributable to a decrease in ongoing core processing costs related to a prior technology-related contract renewed at favorable terms, and $132,000 in advertising expense. Partially offsetting the decreases was a $504,000 increase in compensation and employee benefits, which included a $1.0 million increase in expense related to the Company’s deferred compensation plan which is described above, and had no effect on net income, that was offset by lower medical expense.

The Company recorded income tax expense of $2.4 million for the quarter ended September 30, 2024, compared to $2.9 million for the quarter ended September 30, 2023, with the decrease due to lower taxable income. The effective tax rate for the quarter ended September 30, 2024 was 26.6%, compared to 26.0% for the quarter ended September 30, 2023.

Comparison of Operating Results for the Three Months Ended September 30, 2024 and June 30, 2024

Net income was $6.5 million and $6.0 million for the quarters ended September 30, 2024, and June 30, 2024, respectively. Significant variances from the prior quarter are as follows: an $458,000 decrease in net interest income, a $3.2 million increase in the provision for credit losses on loans, a $719,000 increase in non-interest income, a $2.6 million decrease in non-interest expense, and an $850,000 decrease in income tax expense.

Net interest income for the quarter ended September 30, 2024, decreased by $458,000, or 1.6%, primarily due to a $902,000 decrease in interest income, partially offset by a $444,000 decrease in interest expense on deposits and borrowings. The decrease in interest income was primarily due to a $124.4 million decrease in the average balance of interest-earning assets. The decrease in the average balance of interest-earning assets was primarily due to decreases in the average balance of interest-earning deposits in financial institutions of $91.6 million, the average balance of other securities of $60.5 million, and the average balance of loans outstanding of $48.1 million, partially offset by an increase in the average balance of mortgage-backed securities of $76.5 million. The decrease in interest expense on deposits and borrowings was primarily due to a $105.8 million, or 2.5%, decrease in the average balance of interest-bearing liabilities attributable to a $73.2 million decrease in the average balance of interest-bearing deposits and a $32.7 million decrease in the average balance of borrowed funds.

Net interest margin decreased by one basis point to 2.08% from 2.09% for the quarter ended June 30, 2024, primarily due to a one basis point decrease in yields on interest-earning assets whereas the cost of interest-bearing liabilities remained level. Net interest income for the quarter ended September 30, 2024, included loan prepayment income of $87,000 as compared to $210,000 for the quarter ended June 30, 2024. The Company accreted interest income related to PCD loans of $327,000 for the quarter ended September 30, 2024, as compared to $321,000 for the quarter ended June 30, 2024.

The provision for credit losses on loans increased by $3.2 million to $2.5 million for the quarter ended September 30, 2024, from a benefit of $618,000 for the quarter ended June 30, 2024. The increase in the provision for the current quarter was primarily due to an increase in the specific reserve component of the allowance for credit losses, attributable to a single commercial and industrial relationship that experienced credit deterioration and was placed on non-accrual during the current quarter, higher reserves related to changes in model assumptions during the current quarter, including the slowing of prepayment speeds and higher net-charge-offs. Net charge-offs were $2.1 million for the quarter ended September 30, 2024, as compared to net charge-offs of $1.6 million for the quarter ended June 30, 2024.

Non-interest income increased by $719,000, or 25.1%, to $3.6 million for the quarter ended September 30, 2024, from $2.9 million for the quarter ended June 30, 2024. The increase was primarily due to a $522,000 increase in gains on sales of trading securities, net, and a $192,000 increase in other income, primarily due to higher swap fee income. For the quarter ended September 30, 2024, gains on trading securities, net, were $710,000, compared to gains of $188,000 for the quarter ended June 30, 2024.

Non-interest expense decreased by $2.6 million, or 11.4%, to $20.4 million for the quarter ended September 30, 2024, from $23.0 million for the quarter ended June 30, 2024. The decrease was primarily due to a $2.0 million decrease in compensation and employee benefits, primarily attributable to a decrease in salaries and medical expense due to lower employee headcount, partially offset by a $522,000 increase in expense related to the Company’s deferred compensation plan which had no effect on net income. Also contributing to the decrease were decreases of $192,000 in occupancy expense, $397,000 in data processing costs, attributable to a decrease in ongoing core processing costs resulting from a prior technology-related contract renewed at favorable terms, $200,000 in advertising expense, and $122,000 in other non-interest expense. Partially offsetting the decreases was a $262,000 increase in professional fees, primarily due to an increase in outsourced audit services.

The Company recorded income tax expense of $2.4 million for the quarter ended September 30, 2024, compared to $3.2 million for the quarter ended June 30, 2024. The effective tax rate for the quarter ended September 30, 2024 was 26.6%, compared to 35.0% for the quarter ended June 30, 2024. During the quarter ended June 30, 2024, options granted in 2014 expired and resulted in additional tax expense of $795,000, contributing to the higher effective tax rate for the quarter ended June 30, 2024.

Financial Condition

Total assets increased by $132.5 million, or 2.4%, to $5.73 billion at September 30, 2024, from $5.60 billion at December 31, 2023. The increase was primarily due to increases in available-for-sale debt securities of $268.0 million, or 33.7%, and cash and cash equivalents of $3.4 million, or 1.5%, partially offset by a decrease in loans receivable of $139.7 million, or 3.3%.

Cash and cash equivalents increased by $3.4 million, or 1.5%, to $232.9 million at September 30, 2024, from $229.5 million at December 31, 2023. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities.

Loans held-for-investment, net, decreased by $139.7 million, or 3.3%, to $4.06 billion at September 30, 2024 from $4.20 billion at December 31, 2023, primarily due to decreases in multifamily, commercial and one-to-four family residential real estate loans, partially offset by increases in home equity and lines of credit, construction and land, and commercial and industrial loans. The decrease in loan balances reflects the Company remaining strategically focused on both managing the concentration of its commercial and multifamily real estate loan portfolios and disciplined loan pricing, as well as lower customer demand in the recent elevated interest rate environment. Multifamily loans decreased $110.1 million, or 4.0%, to $2.64 billion at September 30, 2024 from $2.75 billion at December 31, 2023, commercial real estate loans decreased $51.4 million, or 5.5%, to $878.2 million at September 30, 2024 from $929.6 million at December 31, 2023, one-to-four family residential loans decreased $11.1 million, or 6.9%, to $149.7 million at September 30, 2024 from $160.8 million at December 31, 2023, and other loans decreased $925,000, or 35.8%, to $1.7 million at September 30, 2024 from $2.6 million at December 31, 2023. Partially offsetting these decreases were increases in commercial and industrial loans of $19.1 million, or 12.3%, to $174.4 million at September 30, 2024 from $155.3 million at December 31, 2023, home equity and lines of credit of $8.4 million, or 5.2%, to $171.9 million at September 30, 2024 from $163.5 million at December 31, 2023, and construction and land loans of $2.1 million, or 6.6%, to $33.0 million at September 30, 2024 from $31.0 million at December 31, 2023.

As of September 30, 2024, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 447%. Management believes that Northfield Bank (the “Bank”) maintains appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which include monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company’s ability to pay dividends, and overall profitability.

Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York State subject to some form of rent regulation limiting rent increases for rent stabilized multifamily properties. At September 30, 2024, office-related loans represented $183.6 million, or 4.5% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 59%. Approximately 41% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are: 50.7% in New York, 47.8% in New Jersey and 1.5% in Pennsylvania. At September 30, 2024, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $29.9 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms. At September 30, 2024, multifamily loans that have some form of rent stabilization or rent control totaled approximately $447.5 million, or approximately 11% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 51%. At September 30, 2024, our largest rent-regulated loan had a principal balance of $16.9 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.

PCD loans totaled $9.3 million and $9.9 million at September 30, 2024 and December 31, 2023, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $327,000 and $1.1 million attributable to PCD loans for the three and nine months ended September 30, 2024, respectively, as compared to $325,000 and $1.0 million for the three and nine months ended September 30, 2023, respectively. PCD loans had an allowance for credit losses of approximately $2.9 million at September 30, 2024.

Loan balances are summarized as follows (dollars in thousands):

	September 30, 2024		June 30, 2024		December 31, 2023
Real estate loans:
Multifamily	$	2,640,944	$	2,665,202	$	2,750,996
Commercial mortgage		878,173		896,157		929,595
One-to-four family residential mortgage		149,682		151,948		160,824
Home equity and lines of credit		171,946		167,852		163,520
Construction and land		33,024		32,607		30,967
Total real estate loans		3,873,769		3,913,766		4,035,902
Commercial and industrial loans		174,253		165,586		154,984
PPP loans		160		202		284
Other loans		1,660		2,322		2,585
Total commercial and industrial, PPP, and other loans		176,073		168,110		157,853
Loans held-for-investment, net (excluding PCD)		4,049,842		4,081,876		4,193,755
PCD loans		9,264		9,344		9,899
Total loans held-for-investment, net	$	4,059,106	$	4,091,220	$	4,203,654

The Company’s available-for-sale debt securities portfolio increased by $268.0 million, or 33.7%, to $1.06 billion at September 30, 2024, from $795.5 million at December 31, 2023. The increase was primarily attributable to purchases of securities, partially offset by paydowns, maturities and calls. At September 30, 2024, $869.4 million of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $74.9 million in U.S. Government agency securities, $118.5 million in corporate bonds, substantially all of which were investment grade, and $684,000 in municipal bonds at September 30, 2024. Unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $19.6 million and $219,000, respectively, at September 30, 2024, and $32.5 million and $279,000, respectively, at December 31, 2023.

Equity securities were $10.7 million at September 30, 2024 and $10.6 million at December 31, 2023. Equity securities are primarily comprised of an investment in a Small Business Administration Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program.

Total liabilities increased $132.3 million, or 2.7%, to $5.03 billion at September 30, 2024, from $4.90 billion at December 31, 2023. The increase was primarily attributable to an increase in borrowings of $131.6 million, partially offset by a decrease in total deposits of $2.9 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity.

Deposits decreased $2.9 million, or 0.1%, to $3.88 billion at September 30, 2024 as compared to December 31, 2023. Brokered deposits decreased by $17.9 million, or 17.9%, due to maturities that were replaced by borrowings. Deposits, excluding brokered deposits, increased $15.0 million, or 0.4%. The increase in deposits, excluding brokered deposits, was primarily attributable to increases of $80.9 million in time deposits, partially offset by decreases of $14.9 million in transaction accounts, $14.7 million in savings accounts, and $36.3 million in money market accounts. Growth in time deposits was attributable to the current interest rate environment and offering competitive interest rates to attract deposits. Estimated gross uninsured deposits at September 30, 2024 were $1.71 billion. This total includes fully collateralized uninsured governmental deposits and intercompany deposits of $859.3 million, leaving estimated uninsured deposits of approximately $852.2 million, or 22.0%, of total deposits. At December 31, 2023, estimated uninsured deposits totaled $869.9 million, or 22.4% of total deposits.

Deposit account balances are summarized as follows (dollars in thousands):

	September 30, 2024		June 30, 2024		December 31, 2023
Transaction:
Non-interest bearing checking	$	681,741	$	685,574	$	694,903
Negotiable orders of withdrawal and interest-bearing checking		1,230,176		1,251,342		1,231,943
Total transaction		1,911,917		1,936,916		1,926,846
Savings and money market:
Savings		911,067		916,598		925,744
Money market		265,800		255,550		302,122
Brokered money market		—		—		50,000
Total savings		1,176,867		1,172,148		1,277,866
Certificates of deposit:
$250,000 and under		585,606		568,809		525,454
Over $250,000		119,033		120,601		98,269
Brokered		82,146		—		50,000
Total certificates of deposit		786,785		689,410		673,723
Total deposits	$	3,875,569	$	3,798,474	$	3,878,435

Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

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

Business customers	$	869,990	$	866,403	$	893,296
Municipal (governmental) customers	$	799,249	$	815,086	$	768,556

Borrowed funds increased to $1.05 billion at September 30, 2024, from $920.5 million at December 31, 2023. The increase in borrowings for the period was primarily due to a $205.5 million increase in borrowings under the Federal Reserve Bank Term Funding Program, which included favorable terms and conditions as compared to FHLB advances. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies.

The following table sets forth borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at September 30, 2024 (dollars in thousands):

Year	Amount ⁽¹⁾	Weighted Average Rate
2024	$25,000	4.71%
2025	483,184	4.00%
2026	148,000	4.36%
2027	173,000	3.19%
2028	154,288	3.96%
	$983,472	3.92%

__________________________________________________
⁽¹⁾ Borrowings maturing in 2025 include $300.0 million of FRB borrowings that can be repaid without any penalty.

Total stockholders’ equity increased by $119,000 to $699.6 million at September 30, 2024, from $699.4 million at December 31, 2023. The increase was attributable to net income of $18.7 million for the nine months ended September 30, 2024, a $14.1 million increase in accumulated other comprehensive income, associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio due to the increase in market interest rates, and a $1.9 million increase in equity award activity, partially offset by $18.1 million in stock repurchases and $16.5 million in dividend payments. On April 24, 2024, the Board of Directors of the Company approved a $5.0 million stock repurchase program, which was completed in May 2024, and on June 14, 2024, the Board of Directors of the Company approved a $10.0 million stock repurchase program. During the nine months ended September 30, 2024, the Company repurchased 1.8 million of its common stock outstanding at an average price of $10.03 for a total of $18.1 million pursuant to the approved stock repurchase programs. As of September 30, 2024, the Company had no remaining capacity under its current repurchase program.

The Company’s most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the FHLB and Federal Reserve Bank of New York utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. The Company’s on-hand liquidity ratio as of September 30, 2024 was 16.4%.

The Company had the following primary sources of liquidity at September 30, 2024 (dollars in thousands):

Cash and cash equivalents⁽¹⁾	$	218,733
Corporate bonds⁽²⁾	$	104,633
Multifamily loans⁽²⁾	$	699,343
Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)⁽²⁾	$	491,985

__________________________________________________
(1) Excludes $14.2 million of cash at Northfield Bank.
(2) Represents estimated remaining borrowing potential.

The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. The CBLR replaces the risk-based and leverage capital requirements in the generally applicable capital rules. At September 30, 2024, the Company and the Bank’s estimated CBLR ratios were 12.03% and 12.26%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9%.

Asset Quality

The following table details total non-accrual loans (excluding PCD), non-performing assets, loans over 90 days delinquent on which interest is accruing, and accruing loans 30 to 89 days delinquent at September 30, 2024, June 30, 2024, and December 31, 2023 (dollars in thousands):

	September 30, 2024			June 30, 2024			December 31, 2023
Non-accrual loans:
Held-for-investment
Real estate loans:
Multifamily	$	2,651		$	2,691		$	2,709
Commercial		8,823			10,244			6,491
One-to-four family residential		66			69			104
Home equity and lines of credit		1,123			1,124			499
Commercial and industrial		15,117			2,570			305
Other		6			6			7
Total non-accrual loans		27,786			16,704			10,115
Loans delinquent 90 days or more and still accruing:
Held-for-investment
Real estate loans:
Multifamily		—			—			201
Commercial		1,161			—			—
One-to-four family residential		304			136			406
Home equity and lines of credit		343			467			711
Commercial and industrial		835			—			—
Total loans held-for-investment delinquent 90 days or more and still accruing		2,643			603			1,318
Total non-performing loans/assets	$	30,429		$	17,307		$	11,433
Non-performing loans to total loans		0.75	%		0.42	%		0.27	%
Non-performing assets to total assets		0.53	%		0.30	%		0.20	%
Accruing loans 30 to 89 days delinquent	$	16,057		$	6,265		$	8,683

The Company’s non-performing loans at September 30, 2024 totaled $30.4 million, or 0.75%, of total loans as compared to $11.4 million, or 0.27%, at December 31, 2023. The $19.0 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial and industrial loans of $15.6 million and an increase of $3.5 million in non-performing commercial real estate loans. One commercial and industrial relationship with an outstanding balance of $12.5 million at September 30, 2024, experienced credit deterioration and was placed on non-accrual status during the third quarter of 2024. The loan is currently in the process of being restructured and we expect to receive a partial payment of $10.0 million on or before October 31, 2024, with the remaining $2.5 million to be repaid over three years. The loan was individually evaluated for impairment, we charged off $878,000 and provided a specific reserve of $1.3 million. Additionally, management evaluated the collateral from the Company and assets subject to personal guarantees and, based on current estimates, believes there is adequate collateral and assets to support the current value of the loan absent the expected repayment of $10.0 million. Another commercial and industrial relationship with an outstanding balance of $750,000 is in the process of maturity extension. Additionally, there was an increase in non-performing unsecured small business loans. Unsecured small business loans totaled $31.0 million and $37.4 million at September 30, 2024 and December 31, 2023, respectively. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio.

The increase in non-performing commercial real estate loans was primarily attributable to one loan with a balance of $4.4 million, which was put on non-accrual status during the first quarter of 2024. Based on the results of the impairment analysis for this loan, no impairment reserve was necessary as the loan is adequately covered by collateral (a private residence and retail property, both located in New Jersey), with aggregate appraised values totaling $8.7 million.

Accruing Loans 30 to 89 Days Delinquent

Loans 30 to 89 days delinquent and on accrual status totaled $16.1 million, $6.3 million and $8.7 million at September 30, 2024, June 30, 2024, and December 31, 2023, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at September 30, 2024, June 30, 2024, and December 31, 2023 (dollars in thousands):

	September 30, 2024		June 30, 2024		December 31, 2023
Held-for-investment
Real estate loans:
Multifamily	$	2,259	$	168	$	740
Commercial		5,689		1,557		1,010
One-to-four family residential		2,286		1,769		3,339
Home equity and lines of credit		1,369		786		817
Commercial and industrial loans		4,450		1,977		2,767
Other loans		4		8		10
Total delinquent accruing loans held-for-investment	$	16,057	$	6,265	$	8,683

The increase in multifamily delinquent loans was primarily due to two relationships totaling $1.5 million that became current subsequent to September 30, 2024. The increase in commercial real estate delinquent loans was primarily due to two participation loans totaling $5.6 million that matured, and the lead bank is in the process of extending their maturity and should become current in the fourth quarter of 2024. The increase in commercial and industrial delinquent loans from December 31, 2023, was primarily due to two loans to one borrower totaling $1.5 million which we expect to become current in the fourth quarter of 2024, and, to a lesser extent, an increase in delinquencies in unsecured small business loans.

Subsequent to the quarter end, $1.1 million of home equity and lines of credit loans, $1.5 million of one-to-four family residential loans, and $1.5 million of commercial and industrial loans became current.

PCD Loans (Held-for-Investment)

The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.3 million at September 30, 2024 and $9.9 million at December 31, 2023, respectively) as accruing, even though they may be contractually past due. At September 30, 2024, 2.1% of PCD loans were past due 30 to 89 days, and 24.6% were past due 90 days or more, as compared to 2.9% and 27.1%, respectively, at December 31, 2023.

Our multifamily loan portfolio at September 30, 2024 totaled $2.64 billion, or 65% of our total loan portfolio, of which $447.5 million, or 11%, included loans collateralized by properties in New York with units subject to some percentage of rent regulation. The table below sets forth details about our multifamily loan portfolio in New York (dollars in thousands).

% Rent Regulated	Balance		% Portfolio Total NY Multifamily Portfolio		Average Balance		Largest Loan		LTV^*	Debt Service Coverage Ratio (DSCR)^*	30-89 Days Delinquent		Non-Accrual		Special Mention		Substandard
0	$	286,728	39.1	%	$	1,166	$	16,603	51.0%	1.57x	$	1,709	$	534	$	782	$	874
>0-10		4,745	0.7			1,582		2,128	51.4	1.46		—		—		—		—
>10-20		18,681	2.5			1,437		2,865	49.2	1.59		—		—		—		—
>20-30		19,585	2.7			2,176		5,512	54.1	1.64		—		—		—		—
>30-40		15,183	2.1			1,265		3,088	48.3	1.63		—		—		—		—
>40-50		22,208	3.0			1,306		2,740	48.2	1.84		—		—		—		—
>50-60		9,452	1.3			1,575		2,341	39.9	2.03		—		—		—		—
>60-70		19,201	2.6			3,200		11,339	53.0	1.46		—		—		—		—
>70-80		22,405	3.1			2,489		4,914	48.0	1.53		—		—		—		—
>80-90		20,820	2.8			1,157		3,148	46.6	1.71		—		—		—		—
>90-100		295,256	40.1			1,779		16,909	52.6	1.65		—		2,117		1,204		4,482
Total	$	734,264	100.0	%	$	1,454	$	16,909	51.2%	1.62x	$	1,709	$	2,651	$	1,986	$	5,356

The table below sets forth our New York rent-regulated loans by county (dollars in thousands).

County	Balance		LTV^*	DSCR^*
Bronx	$	118,400	51.7%	1.64x
Kings		191,745	51.5%	1.66
Nassau		2,176	36.2%	1.88
New York		49,871	47.3%	1.64
Queens		38,864	44.3%	1.81
Richmond		28,790	60.6%	1.64
Westchester		17,689	61.8%	1.37
Total	$	447,535	51.4%	1.65x

* Weighted Average

None of the loans that are rent-regulated in New York are interest only. During the remainder of 2024, one loan with an aggregate principal balance of $1.8 million will re-price.

About Northfield Bank

Northfield Bank, founded in 1887, operates 38 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

Forward-Looking Statements: This release may contain certain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong. They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, changes in liquidity, the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, competition among depository and other financial institutions, including with respect to fees and interest rates, changes in laws or government regulations or policies affecting financial institutions, including changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, changes in asset quality, prepayment speeds, charge-offs and/or credit loss provisions, our ability to access cost-effective funding, changes in the value of our goodwill or other intangible assets, changes in regulatory fees, assessments and capital requirements, inflation and changes in the interest rate environment that reduce our margins, reduce the fair value of financial instruments or reduce our ability to originate loans, cyber security and fraud risks against our information technology and those of our third-party providers and vendors, the effects of war, conflict, and acts of terrorism, our ability to successfully integrate acquired entities, adverse changes in the securities markets, and the effects of the COVID-19 pandemic. Consequently, no forward-looking statement can be guaranteed. Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.


(Tables follow)

NORTHFIELD BANCORP, INC. SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA (Dollars in thousands, except per share amounts) (unaudited)

							At or For the
	At or For the Three Months Ended						Nine Months Ended
	September 30,				June 30		September 30,
	2024		2023		2024		2024		2023
Selected Financial Ratios:
Performance Ratios ⁽¹⁾
Return on assets (ratio of net income to average total assets)	0.46	%	0.59	%	0.41	%	0.43	%	0.71	%
Return on equity (ratio of net income to average equity)	3.74		4.74		3.45		3.59		5.69
Average equity to average total assets	12.24		12.49		12.00		12.09		12.44
Interest rate spread	1.42		1.69		1.44		1.42		1.91
Net interest margin	2.08		2.25		2.09		2.07		2.41
Efficiency ratio ⁽²⁾	64.07		64.65		72.89		69.44		60.06
Non-interest expense to average total assets	1.43		1.49		1.60		1.53		1.50
Non-interest expense to average total interest-earning assets	1.50		1.56		1.68		1.60		1.57
Average interest-earning assets to average interest-bearing liabilities	128.75		132.21		128.47		128.63		133.66
Asset Quality Ratios:
Non-performing assets to total assets	0.53		0.19		0.30		0.53		0.19
Non-performing loans ⁽³⁾ to total loans ⁽⁴⁾	0.75		0.24		0.42		0.75		0.24
Allowance for credit losses to non-performing loans	115.67		378.67		200.96		115.67		378.67
Allowance for credit losses to total loans held-for-investment, net ⁽⁵⁾	0.87		0.91		0.85		0.87		0.91

(1)	Annualized where appropriate.
(2)	The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
(3)	Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCD loans), and are included in total loans held-for-investment, net.
(4)	Includes originated loans held-for-investment, PCD loans, acquired loans and loans held-for-sale.
(5)	Includes originated loans held-for-investment, PCD loans, and acquired loans.


NORTHFIELD BANCORP, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share and per share amounts) (unaudited)

	September 30, 2024			June 30, 2024			December 31, 2023
ASSETS:
Cash and due from banks	$	14,193		$	14,575		$	13,889
Interest-bearing deposits in other financial institutions		218,733			138,914			215,617
Total cash and cash equivalents		232,926			153,489			229,506
Trading securities		13,759			12,939			12,549
Debt securities available-for-sale, at estimated fair value		1,063,486			1,119,439			795,464
Debt securities held-to-maturity, at amortized cost		9,681			9,749			9,866
Equity securities		10,699			13,964			10,629
Loans held-for-sale		4,897			—			—
Loans held-for-investment, net		4,059,106			4,091,220			4,203,654
Allowance for credit losses		(35,197	)		(34,780	)		(37,535	)
Net loans held-for-investment		4,023,909			4,056,440			4,166,119
Accrued interest receivable		19,299			19,343			18,491
Bank-owned life insurance		174,482			173,483			171,543
Federal Home Loan Bank of New York stock, at cost		37,269			41,785			39,667
Operating lease right-of-use assets		28,943			29,305			30,202
Premises and equipment, net		22,973			23,628			24,771
Goodwill		41,012			41,012			41,012
Other assets		47,516			51,785			48,577
Total assets	$	5,730,851		$	5,746,361		$	5,598,396

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits	$	3,875,569		$	3,798,474		$	3,878,435
Securities sold under agreements to repurchase		—			—			25,000
Federal Home Loan Bank advances and other borrowings		990,871			1,089,727			834,272
Subordinated debentures, net of issuance costs		61,386			61,331			61,219
Lease liabilities		33,529			34,035			35,205
Advance payments by borrowers for taxes and insurance		22,492			26,113			25,102
Accrued expenses and other liabilities		47,440			43,657			39,718
Total liabilities		5,031,287			5,053,337			4,898,951

STOCKHOLDERS’ EQUITY:
Total stockholders’ equity		699,564			693,024			699,445
Total liabilities and stockholders’ equity	$	5,730,851		$	5,746,361		$	5,598,396

Total shares outstanding		42,904,342			43,466,961			44,524,929
Tangible book value per share ⁽¹⁾	$	15.35		$	15.00		$	14.78

(1)

Tangible book value per share is calculated based on total stockholders’ equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $90, $111, and $154 at September 30, 2024, June 30, 2024, and December 31, 2023, respectively, and are included in other assets.


NORTHFIELD BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except share and per share amounts) (unaudited)

	For the Three Months Ended									For the Nine Months Ended
	September 30,						June 30,			September 30,
		2024			2023			2024			2024			2023
Interest income:
Loans	$	46,016		$	46,213		$	45,967		$	138,030		$	135,220
Mortgage-backed securities		8,493			3,664			7,355			20,246			11,170
Other securities		2,684			1,095			3,506			10,031			3,593
Federal Home Loan Bank of New York dividends		914			933			935			2,819			2,125
Deposits in other financial institutions		1,211			831			2,457			7,060			2,225
Total interest income		59,318			52,736			60,220			178,186			154,333
Interest expense:
Deposits		20,304			13,614			20,664			60,241			31,918
Borrowings		9,949			8,593			10,041			30,653			24,182
Subordinated debt		836			837			828			2,492			2,484
Total interest expense		31,089			23,044			31,533			93,386			58,584
Net interest income		28,229			29,692			28,687			84,800			95,749
Provision/(benefit) for credit losses		2,542			188			(618	)		2,339			1,082
Net interest income after (benefit)/provision for credit losses		25,687			29,504			29,305			82,461			94,667
Non-interest income:
Fees and service charges for customer services		1,611			1,317			1,570			4,796			4,006
Income on bank-owned life insurance		999			920			976			2,939			2,679
(Losses)/gains on available-for-sale debt securities, net		(7	)		—			1			(6	)		(17	)
Gains/(losses) on trading securities, net		710			(295	)		188			1,597			723
Gain on sale of loans		—			99			51			51			134
Other		265			80			73			441			744
Total non-interest income		3,578			2,121			2,859			9,818			8,269
Non-interest expense:
Compensation and employee benefits		11,424			10,920			13,388			37,577			34,310
Occupancy		3,030			3,416			3,222			9,805			10,032
Furniture and equipment		450			479			477			1,411			1,393
Data processing		1,780			1,994			2,177			6,104			6,308
Professional fees		943			883			681			2,433			2,622
Advertising		282			414			482			1,282			1,834
Federal Deposit Insurance Corporation insurance		626			591			649			1,863			1,763
Credit loss expense/(benefit) for off-balance sheet exposures		151			160			103			337			(390	)
Other		1,692			1,710			1,814			4,891			4,598
Total non-interest expense		20,378			20,567			22,993			65,703			62,470
Income before income tax expense		8,887			11,058			9,171			26,576			40,466
Income tax expense		2,364			2,877			3,214			7,882			11,019
Net income	$	6,523		$	8,181		$	5,957		$	18,694		$	29,447
Net income per common share:
Basic	$	0.16		$	0.19		$	0.14		$	0.45		$	0.67
Diluted	$	0.16		$	0.19		$	0.14		$	0.45		$	0.67
Basic average shares outstanding		41,028,213			42,866,246			41,999,541			41,794,149			43,848,873
Diluted average shares outstanding		41,088,637			42,918,174			42,002,650			41,829,230			43,927,350


NORTHFIELD BANCORP, INC. ANALYSIS OF NET INTEREST INCOME (Dollars in thousands) (unaudited)

	For the Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾
Interest-earning assets:
Loans ⁽²⁾	$	4,079,974	$	46,016	4.49	%	$	4,128,105	$	45,967	4.48	%	$	4,252,752	$	46,213	4.31	%
Mortgage-backed securities ⁽³⁾		901,042		8,493	3.75			824,498		7,355	3.59			660,753		3,664	2.20
Other securities ⁽³⁾		273,312		2,684	3.91			333,855		3,506	4.22			209,341		1,095	2.08
Federal Home Loan Bank of New York stock		38,044		914	9.56			38,707		935	9.72			41,278		933	8.97
Interest-earning deposits in financial institutions		99,837		1,211	4.83			191,470		2,457	5.16			73,005		831	4.52
Total interest-earning assets		5,392,209		59,318	4.38			5,516,635		60,220	4.39			5,237,129		52,736	4.00
Non-interest-earning assets		275,342						265,702						248,315
Total assets	$	5,667,551					$	5,782,337					$	5,485,444

Interest-bearing liabilities:
Savings, NOW, and money market accounts	$	2,417,725	$	12,717	2.09	%	$	2,490,372	$	13,183	2.13	%	$	2,408,218	$	8,865	1.46	%
Certificates of deposit		700,763		7,587	4.31			701,272		7,481	4.29			551,904		4,749	3.41
Total interest-bearing deposits		3,118,488		20,304	2.59			3,191,644		20,664	2.60			2,960,122		13,614	1.82
Borrowed funds		1,008,338		9,949	3.93			1,041,035		10,041	3.88			939,922		8,593	3.63
Subordinated debt		61,350		836	5.42			61,294		828	5.43			61,127		837	5.43
Total interest-bearing liabilities		4,188,176		31,089	2.95			4,293,973		31,533	2.95			3,961,171		23,044	2.31
Non-interest bearing deposits		683,283						691,384						739,266
Accrued expenses and other liabilities		102,233						103,082						100,103
Total liabilities		4,973,692						5,088,439						4,800,540
Stockholders’ equity		693,859						693,898						684,904
Total liabilities and stockholders’ equity	$	5,667,551					$	5,782,337					$	5,485,444

Net interest income			$	28,229					$	28,687					$	29,692
Net interest rate spread ⁽⁴⁾					1.42	%					1.44	%					1.69	%
Net interest-earning assets ⁽⁵⁾	$	1,204,033					$	1,222,662					$	1,275,958
Net interest margin ⁽⁶⁾					2.08	%					2.09	%					2.25	%
Average interest-earning assets to interest-bearing liabilities					128.75	%					128.47	%					132.21	%

(1)	Average yields and rates are annualized.
(2)	Includes non-accruing loans.
(3)	Securities available-for-sale and other securities are reported at amortized cost.
(4)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)	Net interest margin represents net interest income divided by average total interest-earning assets.

	For the Nine Months Ended
	September 30, 2024						September 30, 2023
	Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾
Interest-earning assets:
Loans ⁽²⁾	$	4,127,409	$	138,030	4.47	%	$	4,260,827	$	135,220	4.24	%
Mortgage-backed securities ⁽³⁾		791,850		20,246	3.42			703,320		11,170	2.12
Other securities ⁽³⁾		332,831		10,031	4.03			241,280		3,593	1.99
Federal Home Loan Bank of New York stock		38,781		2,819	9.71			41,093		2,125	6.91
Interest-earning deposits in financial institutions		184,420		7,060	5.11			72,683		2,225	4.09
Total interest-earning assets		5,475,291		178,186	4.35			5,319,203		154,333	3.88
Non-interest-earning assets		269,180						244,319
Total assets	$	5,744,471					$	5,563,522

Interest-bearing liabilities:
Savings, NOW, and money market accounts	$	2,457,320	$	38,231	2.08	%	$	2,443,400	$	19,194	1.05	%
Certificates of deposit		685,510		22,010	4.29			572,283		12,724	2.97
Total interest-bearing deposits		3,142,830		60,241	2.56			3,015,683		31,918	1.42
Borrowed funds		1,052,589		30,653	3.89			902,802		24,182	3.58
Subordinated debt		61,294		2,492	5.43			61,164		2,484	5.43
Total interest-bearing liabilities	$	4,256,713		93,386	2.93		$	3,979,649		58,584	1.97
Non-interest bearing deposits		691,406						788,991
Accrued expenses and other liabilities		101,639						102,765
Total liabilities		5,049,758						4,871,405
Stockholders’ equity		694,713						692,117
Total liabilities and stockholders’ equity	$	5,744,471					$	5,563,522

Net interest income			$	84,800					$	95,749
Net interest rate spread ⁽⁴⁾					1.42	%					1.91	%
Net interest-earning assets ⁽⁵⁾	$	1,218,578					$	1,339,554
Net interest margin ⁽⁶⁾					2.07	%					2.41	%
Average interest-earning assets to interest-bearing liabilities					128.63	%					133.66	%

(1)	Average yields and rates are annualized.
(2)	Includes non-accruing loans.
(3)	Securities available-for-sale and other securities are reported at amortized cost.
(4)	Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5)	Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6)	Net interest margin represents net interest income divided by average total interest-earning assets.

Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519

The MIL Network –

January 25, 2025

MIL-OSI: Northrim BanCorp Earns $8.8 Million, or $1.57 Per Diluted Share, in Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

ANCHORAGE, Alaska, Oct. 23, 2024 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, compared to $9.0 million, or $1.62 per diluted share, in the second quarter of 2024, and $8.4 million, or $1.48 per diluted share, in the third quarter a year ago. The increase in third quarter 2024 profitability as compared to the third quarter a year ago was primarily the result of an increase in mortgage banking income and higher net interest income, which was only partially offset by higher other operating expenses and a higher provision for credit losses.

Dividends per share in the third quarter of 2024 increased to $0.62 per share as compared to $0.61 per share in the second quarter of 2024 and $0.60 per share in the third quarter of 2023.

“We had strong deposit-funded loan growth in the third quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Deposits and loans both increased 7% from the end of the second quarter. Our deposit market share increased by 4% in the past year and by 42% in the past five years as our investments in people, expanded branch network, and differentiated service continue to attract new customers and strengthen existing relationships.”

Third Quarter 2024 Highlights:

Net interest income in the third quarter of 2024 increased 7% to $28.8 million compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023.

Net interest margin on a tax equivalent basis (“NIMTE”)^* was 4.35% for the third quarter of 2024, up 5-basis points from the second quarter of 2024 and up 14-basis points from the third quarter a year ago.

Return on average assets (“ROAA”) was 1.22% and return on average equity (“ROAE”) was 13.69% for the third quarter of 2024.

Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.

Total deposits were $2.63 billion at September 30, 2024, up 7% from the preceding quarter, and up 8% from $2.43 billion a year ago. Non-interest bearing demand deposits increased 8% from the preceding quarter and decreased slightly year-over-year to $763.6 million at September 30, 2024 and represent 29% of total deposits.

The average cost of interest-bearing deposits was 2.24% at September 30, 2024, up from 2.21% at June 30, 2024 and 1.75% at September 30, 2023.

Mortgage loan originations increased to $248.0 million in the third quarter of 2024, up from $181.5 million in the second quarter of 2024 and $153.4 million in the third quarter a year ago. Mortgage loans funded for sale were $210.0 million in the third quarter of 2024, compared to $152.3 million in the second quarter of 2024 and $131.9 million in the third quarter of 2023.

Financial Highlights	Three Months Ended
(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024		March 31, 2024					December 31, 2023			September 30, 2023
Total assets	$2,963,392			$2,821,668		$2,759,560					$2,807,497			$2,790,189
Total portfolio loans	$2,007,565			$1,875,907		$1,811,135					$1,789,497			$1,720,091
Total deposits	$2,625,567			$2,463,806		$2,434,083					$2,485,055			$2,427,930
Total shareholders’ equity	$260,050			$247,200		$239,327					$234,718			$225,259
Net income	$8,825			$9,020		$8,199					$6,613			$8,374
Diluted earnings per share	$1.57			$1.62		$1.48					$1.19			$1.48
Return on average assets		1.22	%		1.31		%		1.19	%		0.93	%		1.22	%
Return on average shareholders’ equity		13.69	%		14.84		%		13.84	%		11.36	%		14.67	%
NIM		4.29	%		4.24		%		4.16	%		4.06	%		4.15	%
NIMTE^*		4.35	%		4.30		%		4.22	%		4.12	%		4.21	%
Efficiency ratio		66.11	%		68.78		%		68.93	%		72.21	%		66.64	%
Total shareholders’ equity/total assets		8.78	%		8.76		%		8.67	%		8.36	%		8.07	%
Tangible common equity/tangible assets^*		8.28	%		8.24		%		8.14	%		7.84	%		7.54	%
Book value per share	$47.27			$44.93				$43.52			$42.57			$40.60
Tangible book value per share^*	$44.36			$42.03				$40.61			$39.68			$37.72
Dividends per share	$0.62			$0.61				$0.61			$0.60			$0.60
Common stock outstanding		5,501,943			5,501,562				5,499,578			5,513,459			5,548,436

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

Alaska Economic Update
(Note: sources for information included in this section are included on page 12.)

The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in August of 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.8% or 6,400 jobs between August of 2023 and August of 2024.

According to the DOL, the Construction sector had the largest growth in new jobs through August compared to the prior year. The Construction sector added 2,600 positions for a year over year growth rate of 12.9% between August of 2023 and 2024. The larger Health Care sector grew by 2,000 jobs for an annual growth rate of 4.9% over the same period. The Oil & Gas sector increased by 6.5% or 500 new direct jobs. Professional and Business Services added 1,000 jobs year over year through August of 2024, up 3.4%. The Government sector grew by 700 jobs for 0.9% growth, adding 500 Federal jobs and 200 Local government positions in Alaska. The only sectors to decline between August 2023 and August 2024 were Manufacturing (primarily seafood processing) shrinking 1,300 positions and Information, down 200 jobs.

Alaska’s Gross State Product (“GSP”) in the second quarter of 2024, was estimated to be $69.8 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. However, in the second quarter of 2024 Alaska decreased at an annualized rate of 1.1%, compared to the average U.S. growth rate of 3%. Alaska’s real GSP decline in the second quarter of 2024 was primarily caused by a slowdown in the Mining, Oil & Gas; and Transportation and Warehousing sectors.

The BEA also calculated Alaska’s seasonally adjusted personal income at $55.4 billion in the second quarter of 2024. This was an annualized improvement of 4% for Alaska, compared to the national average of 5.3%.

The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April of 2024 and averaged $74.06 in September of this year. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 479 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2023 and declined to 461 thousand bpd in Alaska’s fiscal year 2024. Starting in fiscal year 2025 it is projected to grow to 477 thousand bpd. The DOR projects the number to grow rapidly and reach 640 thousand bpd by fiscal year 2033. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay.

According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 5.2% in 2023 to $480,207, following a 7.6% increase in 2022. This was the sixth consecutive year of price increases. In the first nine months of 2024 the average price continues to increase 6.8% to an average sale of
$512,815.

The average sales price for single family homes in the Matanuska Susitna Borough rose 4% in 2023 to $397,589, after increasing 9.9% in 2022. This continues a trend of average price increases for more than a decade in the region. In the first nine months of 2024 the average sales price increased 4.6% in the Matanuska Susitna Borough to $415,709. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

The Alaska Multiple Listing Services reported a 1.2% decrease in the number of units sold in Anchorage when comparing January to September of 2023 and 2024. There were 5.4% less homes sold in the Matanuska Susitna Borough for the same nine month time period in 2024 compared to the prior year.

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

Review of Income Statement

Consolidated Income Statement

In the third quarter of 2024, Northrim generated a ROAA of 1.22% and a ROAE of 13.69%, compared to 1.31% and 14.84%, respectively, in the second quarter of 2024 and 1.22% and 14.67%, respectively, in the third quarter a year ago.

Net Interest Income/Net Interest Margin

Net interest income increased 7% to $28.8 million in the third quarter of 2024 compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023. Interest expense on deposits increased to $10.1 million in the third quarter of 2024 compared to $9.5 million in the second quarter and $7.1 million in the third quarter of 2023.

NIMTE^* was 4.35% in the third quarter of 2024 up from 4.30% in the preceding quarter and 4.21% in the third quarter a year ago. NIMTE^* increased 14 basis points in the third quarter of 2024 compared to the third quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the third quarter of 2024 was 7.24% compared to 7.90% in the second quarter of 2024 and 7.44% in the third quarter a year ago. The yield on the investment portfolio in the third quarter of 2024 decreased slightly to 2.80% from 2.82% in the second quarter of 2024 and increased from 2.43% in the third quarter of 2023. “We continue to see the benefit of new loan volume and repricing outweigh the modest increase in deposit costs in the third quarter of 2024,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE^* continues to remain above the peer average of 3.13% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of June 30, 2024.

Provision for Credit Losses

Northrim recorded a provision for credit losses of $2.1 million in the third quarter of 2024, which was comprised of of a $325,000 provision for credit losses on unfunded commitments and a provision for credit losses on loans of $1.7 million. The provision for unfunded commitments was primarily due to an increase in unfunded commitments, as well as an increase in estimated loss rates due to changes in mix and management’s assessment of economic conditions. The increase to the provision for credit losses on loans was primarily a result of loan growth, as well as an increase in the provision for loans individually evaluated and an increase in estimated loss rates. This compares to a benefit to the provision for credit losses of $120,000 in the second quarter of 2024, and provision for credit losses of $1.2 million in the third quarter a year ago.

Nonperforming loans, net of government guarantees, increased slightly during the quarter to $5.0 million at September 30, 2024, compared to $4.8 million at June 30, 2024, and decreased from $5.1 million at September 30, 2023.

The allowance for credit losses on loans was 394% of nonperforming loans, net of government guarantees, at the end of the third quarter of 2024, compared to 365% three months earlier and 326% a year ago.

Other Operating Income

In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $11.6 million, or 29% of total third quarter 2024 revenues, as compared to $9.6 million, or 26% of revenues in the second quarter of 2024, and $8.0 million, or 23% of revenues in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the preceding quarter and the third quarter of 2023 was primarily the result of an increase in mortgage banking income due to a higher volume of mortgage activity. See further discussion regarding mortgage activity during the second quarter contained under “Home Mortgage Lending” below. The fair market value of marketable equity securities increased $576,000 in the third quarter of 2024 compared to a decrease of $60,000 in the prior quarter and an increase of $12,000 in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the third quarter a year ago was due primarily to an increase in mortgage banking income as a result of higher volume of mortgage activity due to our expansion in Arizona, Colorado, and the Pacific Northwest markets, as well as an increase in fair value of marketable equity securities.

Other Operating Expenses

Operating expenses were $26.7 million in the third quarter of 2024, compared to $25.2 million in the second quarter of 2024, and $22.9 million in the third quarter of 2023. The increase in other operating expenses in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to an increase in salaries and other personnel expense, including $653,000 in mortgage commissions expense due to higher mortgage volume and a $979,000 increase in profit share expense, which was partially offset by a $836,000 decrease in medical claims expense. The increase in other operating expenses in the third quarter of 2024 compared to a year ago was primarily due to an increase in salaries and other personnel expense, as well as an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022.

Income Tax Provision

In the third quarter of 2024, Northrim recorded $2.8 million in state and federal income tax expense for an effective tax rate of 24.2%, compared to $2.5 million, or 21.9% in the second quarter of 2024 and $1.9 million, or 18.4% in the third quarter a year ago. The increase in the tax rate in the third quarter of 2024 as compared to the third quarter of 2023 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2024 as compared to 2023.

Community Banking

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

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

Net interest income in the Community Banking segment totaled $25.9 million in the third quarter of 2024, compared to $24.3 million in the second quarter of 2024 and $24.1 million in the third quarter of 2023. Net interest income increased 7% in the third quarter of 2024 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by higher interest expense on deposits and borrowings and lower interest income on portfolio investments.

Other operating expenses in the Community Banking segment totaled $19.1 million in the third quarter of 2024, up $588,000 or 3% from $18.5 million in the second quarter of 2024, and up $2.1 million or 13% from $16.9 million in the third quarter a year ago. The increase in the third quarter of 2024 as compared to the prior quarter was mostly due to an increases in salaries and other personnel expense, marketing expense, and professional fees. The increase in the third quarter of 2024 as compared to the third quarter a year ago was primarily due to an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022, as well as increases in salaries and other personnel expense and marketing expense.

The following tables provide highlights of the Community Banking segment of Northrim:

	Three Months Ended
	September		March 31,		December		September
(Dollars in thousands, except per share data)	30, 2024	June 30, 2024		2024		31, 2023		30, 2023
Net interest income	$25,901	$24,278	$24,215		$24,456		$24,050
(Benefit) provision for credit losses	1,492	(184)		197		885		1,190
Other operating income	4,540	3,693		3,813		4,048		3,597
Other operating expense	19,085	18,497		17,552		18,516		16,946
Income before provision for income taxes	9,864	9,658		10,279		9,103		9,511
Provision for income taxes	2,316	2,004		2,242		1,941		1,709
Net income	$7,548	$7,654	$8,037		$7,162		$7,802
Weighted average shares outstanding, diluted	5,583,055	5,558,580		5,554,930		5,578,491		5,624,906
Diluted earnings per share	$1.34	$1.37	$1.45		$1.29		$1.39

	Year-to-date
(Dollars in thousands, except per share data)	September 30, 2024		September 30, 2023
Net interest income	$	74,394	$	71,502
Provision for credit losses		1,505		2,957
Other operating income		12,046		9,564
Other operating expense		55,134		52,168
Income before provision for income taxes		29,801		25,941
Provision for income taxes		6,562		5,216
Net income Community Banking segment	$	23,239	$	20,725
Weighted average shares outstanding, diluted		5,574,135		5,688,687
Diluted earnings per share	$	4.16	$	3.64

Home Mortgage Lending

During the third quarter of 2024, mortgage loans funded for sale increased to $210.0 million, compared to $152.3 million in the second quarter of 2024, and $131.9 million in the third quarter of 2023.

During the third quarter of 2024, the Bank purchased Residential Mortgage-originated loans of $38.1 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.59%, up from $29.2 million and 6.82% in the second quarter of 2024, and up from $21.6 million and 6.60% in the third quarter of 2023. The increase in mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $2.9 million to total revenue in the third quarter of 2024, up from $2.8 million in the prior quarter, and up from $2.3 million in the third quarter a year ago.

The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 20% of Residential Mortgage’s $248 million total production in the third quarter of 2024, 22% of $182 million total production in the second quarter of 2024, and 8% of $153 million total production in the third quarter of 2023.

The net change in fair value of mortgage servicing rights decreased mortgage banking income by $968,000 during the third quarter of 2024 compared to a decrease of $81,000 for the second quarter of 2024 and a decrease of $310,000 for the third quarter of 2023. Mortgage servicing revenue increased to $2.6 million in the third quarter of 2024 from $2.2 million in the prior quarter and from $2.4 million in the third quarter of 2023 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the third quarter of 2024, the Company’s servicing portfolio increased $64.8 million, which included $87.3 million in new mortgage loans, net of amortization and payoffs of $22.5 million as compared to a net increase of $41.8 million in the second quarter of 2024 and $58.2 million in the third quarter of 2023.

As of September 30, 2024, Northrim serviced 4,187 loans in its $1.17 billion home-mortgage-servicing portfolio, a 6% increase compared to the $1.10 billion serviced as of the end of the second quarter of 2024, and a 19% increase from the $982.1 million serviced a year ago.

The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

	Three Months Ended
		September						March 31,			December			September
(Dollars in thousands, except per share data)		30, 2024		June 30, 2024				2024			31, 2023			30, 2023
Mortgage commitments	$77,591			$88,006			$56,208			$22,926			$50,128
Mortgage loans funded for sale	$209,960			$152,339			$84,324			$79,742			$131,863
Mortgage loans funded for investment		38,087			29,175			17,403			27,114			21,585
Total mortgage loans funded	$248,047			$181,514			$101,727			$106,856			$153,448
Mortgage loan refinances to total fundings		6	%		6	%		4	%		4	%		5	%
Mortgage loans serviced for others	$1,166,585			$1,101,800			$1,060,007			$1,044,516			$982,098
Net realized gains on mortgage loans sold	$5,079			$3,188			$1,980			$1,462			$2,491
Change in fair value of mortgage loan commitments, net		60			391			386			(296	)		(289	)
Total production revenue		5,139			3,579			2,366			1,166			2,202
Mortgage servicing revenue		2,583			2,164			1,561			2,180			2,396
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(566	)		239			289			(707	)		—
Other²		(402	)		(320	)		(314	)		(301	)		(310	)
Total mortgage servicing revenue, net		1,615			2,083			1,536			1,172			2,086
Other mortgage banking revenue		293			222			129			99			117
Total mortgage banking income	$7,047			$5,884			$4,031			$2,437			$4,405

Net interest income	$2,941			$2,775			$2,232			$2,276			$2,300
Provision (benefit) for credit losses		571			64			(48	)		—			—
Mortgage banking income		7,047			5,884			4,031			2,437			4,405
Other operating expense		7,643			6,697			6,086			5,477			5,951
Income (loss) before provision for income taxes		1,774			1,898			225			(764	)		754
Provision (benefit) for income taxes		497			532			63			(215	)		182
Net income (loss)	$1,277			$1,366			$162				($549	)	$572
Weighted average shares outstanding, diluted		5,583,055			5,558,580			5,554,930			5,578,491			5,624,906
Diluted earnings per share	$0.23			$0.25			$0.03				($0.10	)	$0.09

¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

	Year-to-date
(Dollars in thousands, except per share data)	September 30, 2024			September 30, 2023
Mortgage loans funded for sale	$446,623			$296,412
Mortgage loans funded for investment		84,665			119,144
Total mortgage loans funded	$531,288			$415,556
Mortgage loan refinances to total fundings		6	%		5	%

Net realized gains on mortgage loans sold	$10,247			$6,366
Change in fair value of mortgage loan commitments, net		837			194
Total production revenue		11,084			6,560
Mortgage servicing revenue		6,308			5,188
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(38	)		(215	)
Other²		(1,036	)		(1,464	)
Total mortgage servicing revenue, net		5,234			3,509
Other mortgage banking revenue		644			257
Total mortgage banking income	$16,962			$10,326
Net interest income	$7,948			$5,022
Provision for credit losses		587			—
Mortgage banking income		16,962			10,326
Other operating expense		20,426			18,020
Income before provision for income taxes		3,897			(2,672	)
Provision for income taxes		1,092			(728	)
Net (loss) income Home Mortgage Lending segment	$2,805				($1,944	)
Weighted average shares outstanding, diluted		5,574,135			5,688,687
Diluted (loss) earnings per share	$0.51				($0.34	)

¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

Balance Sheet Review

Northrim’s total assets were $2.96 billion at September 30, 2024, up 5% from the preceding quarter and up 6% from a year ago. Northrim’s loan-to-deposit ratio was 76% at September 30, 2024, consistent with 76% at June 30, 2024,
and up from 71% at September 30, 2023.

At September 30, 2024, our liquid assets, investments, and loans maturing within one year were $1.07 billion and our funds available for borrowing under our existing lines of credit were $641.7 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

Average interest-earning assets were $2.67 billion in the third quarter of 2024, up 4% from $2.57 billion in the second quarter of 2024 and up 6% from $2.52 billion in the third quarter a year ago. The average yield on interest- earning assets was 5.92% in the third quarter of 2024, up from 5.83% in the preceding quarter and 5.48% in the third quarter a year ago.

Average investment securities decreased to $619.0 million in the third quarter of 2024, compared to $640.0 million in the second quarter of 2024 and $715.8 million in the third quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.80% for the third quarter of 2024, down from 2.82% in the preceding quarter

and up from 2.43% in the year ago quarter. The average estimated duration of the investment portfolio at September 30, 2024, was approximately 2.3 years compared to approximately 2.8 years at September 30, 2023. As of September 30, 2024, $105.1 million of available for sale securities with a weighted average yield of 0.61% are scheduled to mature in the next six months, $73.0 million with a weighted average yield of 2.48% are scheduled to mature in six months to one year, and $177.8 million with a weighted average yield of 1.31% are scheduled to mature in the following year, representing a total of $355.9 million or 13% of earning assets that are scheduled to mature in the next 24 months.

Total unrealized losses, net of tax, on available for sale securities decreased by $7.6 million in the third quarter of 2024 resulting in total unrealized loss, net of tax, of $7.6 million compared to $15.2 million at June 30, 2024, and $26.5 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $2.1 million at September 30, 2024, compared to $3.0 million at June 30, 2024, and $4.5 million a year ago.

Average interest bearing deposits in other banks increased to $28.4 million in the third quarter of 2024 from $17.4 million in the second quarter of 2024 and decreased from $42.3 million in the third quarter of 2023, as deposit balances increased and cash was used to fund the loan growth and provide liquidity.

Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.76 billion at September 30, 2024, up $105.2 million or 6% from the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $33.2 million, construction loans increasing by $31.4 million, and commercial real estate owner-occupied loans increasing $29.0 million from the preceding quarter. Average portfolio loans in the third quarter of 2024 were $1.93 billion, which was up 5% from the preceding quarter and up 14% from a year ago. Yields on average portfolio loans in the third quarter of 2024 increased to 6.91% from 6.87% in the second quarter and from 6.61% in the third quarter of 2023. The increase in the yield on portfolio loans in the third quarter of 2024 compared to the second quarter of 2024 and the third quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.43% in the third quarter of 2024 as compared to 8.26% in the second quarter of 2024 and 7.75% in the third quarter of 2023. The drop in yields on new loan production was largely related to the large volume of new commercial real estate versus commercial loans, as noted above, as well as slightly better credit quality of the loans originated in the third quarter of 2024.

Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.63 billion at September 30, 2024, up 7% from $2.46 billion at June 30, 2024, and up 8% from $2.43 billion a year ago. “The increase in deposits in the third quarter of 2024 were consistent with our customers’ business cycles and a result of continued acquisition of new relationships,” said Ballard. At September 30, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $48,000 as of September 30, 2024. Northrim had 22 customers with balances over $10 million as of September 30, 2024, which accounted for $978.4 million, or 38%, of total deposits. Demand deposits increased by 8% from the prior quarter and decreased slightly year-over-year to
$763.6 million at September 30, 2024. Demand deposits remained consistent at 29% of total deposits at both September 30, 2024 and June 30, 2024 down from 31% of total deposits at September 30, 2023. Average interest- bearing deposits were up 4% to $1.80 billion with an average cost of 2.24% in the third quarter of 2024, compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024, and up 11% compared to $1.62 billion and an average cost of 1.75% in the third quarter of 2023. Uninsured deposits totaled $1.12 billion or 43% of total deposits as of September 30, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. Since interest rates began increasing in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

Shareholders’ equity was $260.1 million, or $47.27 book value per share, at September 30, 2024, compared to $247.2 million, or $44.93 book value per share, at June 30, 2024 and $225.3 million, or $40.60 book value per share, a year ago. Tangible book value per share^* was $44.36 at September 30, 2024, compared to $42.03 at June

30, 2024, and $37.72 per share a year ago. The increase in shareholders’ equity in the third quarter of 2024 as compared to the second quarter of 2024 was largely the result of earnings of $8.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $7.6 million, net of tax, which were only partially offset by dividends paid of $3.4 million. The Company did not repurchase any shares of common stock in the third quarter of 2024 and has 110,000 shares remaining under the current share repurchase program as of September 30, 2024. Tangible common equity to tangible assets^* was 8.28% as of September 30, 2024, compared to 8.24% as of June 30, 2024 and 7.54% as of September 30, 2023. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 11.53% at September 30, 2024, compared to 11.68% at June 30, 2024, and 11.67% at September 30, 2023.

Asset Quality

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

Nonperforming assets (“NPAs”) net of government guarantees were $5.3 million at September 30, 2024, up from $5.1 million at June 30, 2024 and $5.2 million a year ago. Of the NPAs at September 30, 2024, $3.0 million, or 61%, are nonaccrual loans related to three commercial relationships.

Net adversely classified loans were $6.5 million at September 30, 2024, as compared to $7.1 million at June 30, 2024, and $7.3 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $96,000 in the third quarter of 2024, compared to net loan recoveries of $26,000 in the second quarter of 2024, and net loan recoveries of $96,000 in the third quarter of 2023. Additionally, Northrim had 11 loan modifications to borrowers experiencing financial difficulty totaling $3.1 million, net of government guarantees in the third quarter of 2024.

Northrim had $127.4 million, or 6% of portfolio loans, in the Healthcare sector, $110.4 million, or 5% of portfolio loans, in the Tourism sector, $96.6 million, or 5% of portfolio loans, in the Accommodations sector, $83.6 million, or 4% of portfolio loans, in the Fishing sector, $70.6 million, or 3% of portfolio loans, in the Aviation (non-tourism) sector, $67.7 million, or 3% of portfolio loans, in the Retail sector, and $53.1 million, or 3% in the Restaurants and Breweries sector as of September 30, 2024.

Northrim estimates that $82.0 million, or approximately 4% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of September 30, 2024, and $1.6 million of these loans are adversely classified. As of September 30, 2024, Northrim has an additional $29.7 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches in Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula, Juneau, Fairbanks, Nome, Kodiak, Ketchikan, and Sitka, serving 90% of Alaska’s population; and an asset-based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.

www.northrim.com

Forward-Looking Statement

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

References:

https://www.bea.gov/

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

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

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

www.mba.org

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

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

Income Statement

(Dollars in thousands, except per share data)	Three Months Ended								Year-t			o-date
(Unaudited)	September 30,		June 30,			September 30,			September 30,			September 30,
		2024		2024			2023			2024			2023
Interest Income:
Interest and fees on loans	$34,863		$32,367			$29,097			$97,680			$79,104
Interest on portfolio investments		4,164		4,310			4,727			12,994			14,018
Interest on deposits in banks		389		232			584			1,459			2,901
Total interest income		39,416		36,909			34,408			112,133			96,023
Interest Expense:
Interest expense on deposits		10,123		9,476			7,138			28,779			17,835
Interest expense on borrowings		451		380			920			1,012			1,664
Total interest expense		10,574		9,856			8,058			29,791			19,499
Net interest income		28,842		27,053			26,350			82,342			76,524
(Benefit) provision for credit losses		2,063		(120	)		1,190			2,092			2,957
Net interest income after provision for credit losses		26,779		27,173			25,160			80,250			73,567
Other Operating Income:
Mortgage banking income		7,047		5,884			4,405			16,962			10,326
Bankcard fees		1,196		1,105			1,022			3,218			2,916
Purchased receivable income		1,033		1,242			1,180			3,620			3,175
Service charges on deposit accounts		605		572			550			1,726			1,512
Unrealized gain (loss) on marketable equity securities		576		(60	)		12			830			(445	)
Other income		1,130		834			833			2,652			2,406
Total other operating income		11,587		9,577			8,002			29,008			19,890
Other Operating Expense:
Salaries and other personnel expense		17,549		16,627			15,657			49,593			46,324
Data processing expense		2,618		2,601			2,589			7,878			7,321
Occupancy expense		1,911		1,843			1,857			5,716			5,611
Professional and outside services		903		726			803			2,384			2,326
Marketing expense		860		690			499			2,063			1,996
Insurance expense		596		692			640			2,067			1,844
OREO expense, net rental income and gains on sale		2		2			(784	)		(387	)		(766	)
Intangible asset amortization expense		—		—			4			—			11
Other operating expense		2,289		2,013			1,631			6,246			5,521
Total other operating expense		26,728		25,194			22,896			75,560			70,188

Income before provision for income taxes		11,638		11,556			10,266			33,698			23,269
Provision for income taxes		2,813		2,536			1,892			7,654			4,488
Net income	$8,825		$9,020			$8,374			$26,044			$18,781
Basic EPS	$1.60		$1.64			$1.50			$4.73			$3.34
Diluted EPS	$1.57		$1.62			$1.48			$4.67			$3.30
Weighted average shares outstanding, basic		5,501,943		5,500,588			5,569,238			5,500,703			5,630,948
Weighted average shares outstanding, diluted		5,583,055		5,558,580			5,624,906			5,574,135			5,688,687

Balance Sheet (Dollars in thousands) (Unaudited)	September 30,			June 30,			September 30,
		2024			2024			2023
Assets:
Cash and due from banks	$42,805			$33,364			$31,276
Interest bearing deposits in other banks		60,071			21,058			79,952
Investment securities available for sale, at fair value		545,210			584,964			652,150
Investment securities held to maturity		36,750			36,750			36,750
Marketable equity securities, at fair value		12,957			12,381			10,615
Investment in Federal Home Loan Bank stock		4,318			4,929			6,334
Loans held for sale		97,937			85,926			63,151

Portfolio loans		2,007,565			1,875,907			1,720,091
Allowance for credit losses, loans		(19,528	)		(17,694	)		(16,491	)
Net portfolio loans		1,988,037			1,858,213			1,703,600
Purchased receivables, net		23,564			25,722			34,578
Mortgage servicing rights, at fair value		21,570			21,077			19,396
Other real estate owned, net		—			—			150
Premises and equipment, net		39,625			40,393			40,920
Lease right of use asset		7,616			8,244			9,673
Goodwill and intangible assets		15,967			15,967			15,973
Other assets		66,965			72,680			85,671
Total assets	$2,963,392			$2,821,668			$2,790,189
Liabilities:
Demand deposits	$763,595			$704,471			$764,647
Interest-bearing demand		979,238			906,010			875,814
Savings deposits		245,043			238,156			265,799
Money market deposits		201,821			195,159			230,814
Time deposits		435,870			420,010			290,856
Total deposits		2,625,567			2,463,806			2,427,930
Other borrowings		13,354			43,961			63,781
Junior subordinated debentures		10,310			10,310			10,310
Lease liability		7,635			8,269			9,673
Other liabilities		46,476			48,122			53,236
Total liabilities		2,703,342			2,574,468			2,564,930
Shareholders’ Equity:
Total shareholders’ equity		260,050			247,200			225,259
Total liabilities and shareholders’ equity	$2,963,392			$2,821,668			$2,790,189

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Composition of Portfolio Loans

		September 30, 2024				June 30, 2024					March 31, 2024					December 31, 2023					September 30, 2023
	Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total
Commercial loans	$492,414			24	%	$495,781			26	%	$475,220			26	%	$486,057			27	%	$492,145			28	%
Commercial real estate:
Owner occupied properties		412,827		20	%		383,832		20	%		372,507		20	%		368,357		20	%		359,019		21	%
Nonowner occupied and
multifamily properties		584,302		31	%		551,130		30	%		529,904		30	%		519,115		30	%		509,939		30	%
Residential real estate:
1-4 family properties
secured by first liens		248,514		12	%		222,026		12	%		218,552		12	%		203,534		11	%		180,719		10	%
1-4 family properties
secured by junior liens &
revolving secured by first liens		45,262		2	%		41,258		2	%		35,460		2	%		33,783		2	%		27,342		2	%
1-4 family construction		39,794		2	%		29,510		2	%		27,751		2	%		31,239		2	%		32,374		2	%
Construction loans		185,362		9	%		154,009		8	%		153,537		8	%		149,788		8	%		120,909		7	%
Consumer loans		7,836		—	%		6,679		—	%		6,444		—	%		6,180		—	%		5,930		—	%
Subtotal		2,016,311					1,884,225					1,819,375					1,798,053					1,728,377
Unearned loan fees, net		(8,746	)				(8,318	)				(8,240	)				(8,556	)				(8,286	)
Total portfolio loans	$2,007,565					$1,875,907					$1,811,135					$1,789,497					$1,720,091

Composition of Deposits

	September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023
	Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total
Demand deposits	$763,595		29	%	$704,471		29	%	$714,244		29	%	$749,683		31	%	$764,647		31	%
Interest-bearing demand		979,238	37	%		906,010	36	%		889,581	37	%		927,291	37	%		875,814	36	%
Savings deposits		245,043	9	%		238,156	10	%		246,902	10	%		255,338	10	%		265,799	11	%
Money market deposits		201,821	8	%		195,159	8	%		209,785	9	%		221,492	9	%		230,814	10	%
Time deposits		435,870	17	%		420,010	17	%		373,571	15	%		331,251	13	%		290,856	12	%
Total deposits	$2,625,567				$2,463,806				$2,434,083				$2,485,055				$2,427,930

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Asset Quality

		September 30, 2024		June 30, 2024		September 30, 2023
Nonaccrual loans	$4,944			$4,830		$6,492
Loans 90 days past due and accruing		17		17		28
Total nonperforming loans		4,961		4,847		6,520
Nonperforming loans guaranteed by government		—		—		(1,455)
Net nonperforming loans		4,961		4,847		5,065
Other real estate owned	—			—		150
Repossessed assets	297			297		—
Net nonperforming assets	$5,258			$5,144		$5,215
Nonperforming loans, net of government guarantees / portfolio loans		0.25	%	0.26	%	0.29	%
Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees		0.26	%	0.28	%	0.31	%
Nonperforming assets, net of government guarantees / total assets		0.18	%	0.18	%	0.19	%
Nonperforming assets, net of government guarantees / total assets net of government guarantees		0.19	%	0.19	%	0.19	%
Adversely classified loans, net of government guarantees	$6,503			$7,068		$7,250
Special mention loans, net of government guarantees	$9,641			$8,902		$5,457
Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans		0.08	%	0.03	%	—	%
Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees		0.09	%	0.04	%	—	%
Allowance for credit losses / portfolio loans		0.97	%	0.94	%	0.96	%
Allowance for credit losses / portfolio loans, net of government guarantees		1.04	%	1.01	%	1.02	%
Allowance for credit losses / nonperforming loans, net of government guarantees		394	%	365	%	326	%
Gross loan charge-offs for the quarter	$15			$—		$91
Gross loan recoveries for the quarter		($111)		($26)		($187)
Net loan (recoveries) charge-offs for the quarter		($96)		($26)		($96)
Net loan charge-offs (recoveries) year-to-date		($164)		($68)		($134)
Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter		—	%	—	%	(0.01)	%
Net loan charge-offs (recoveries) year-to-date / average loans, year-to-date annualized		(0.01)	%	(0.01)	%	(0.01)	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates

	Three Months Ended
	September 30, 2024					June 30, 2024					September 30, 2023
	Average Balance			Average Tax Equivalent Yield/Rate		Average Balance			Average Tax Equivalent Yield/Rate		Average Balance			Average Tax Equivalent Yield/Rate
Assets
Interest bearing deposits in other banks	$	28,409		5.28	%	$	17,352		5.27	%	$	42,273		5.39	%
Portfolio investments		619,012		2.80	%		639,980		2.82	%		715,767		2.43	%
Loans held for sale		93,689		6.20	%		65,102		6.08	%		62,350		6.34	%
Portfolio loans		1,933,181		6.91	%		1,845,832		6.87	%		1,695,736		6.61	%
Total interest-earning assets		2,674,291		5.92	%		2,568,266		5.83	%		2,516,126		5.48	%
Nonearning assets		196,266					204,509					205,770
Total assets	$	2,870,557				$	2,772,775				$	2,721,896
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	1,796,107		2.24	%	$	1,725,013		2.21	%	$	1,619,478		1.75	%
Borrowings		43,555		4.07	%		38,390		3.92	%		76,681		4.73	%
Total interest-bearing liabilities		1,839,662		2.29	%		1,763,403		2.25	%		1,696,159		1.88	%
Noninterest-bearing demand deposits		722,000					706,339					747,147
Other liabilities		52,387					58,549					52,078
Shareholders’ equity		256,508					244,484					226,512
Total liabilities and shareholders’ equity	$	2,870,557				$	2,772,775				$	2,721,896
Net spread				3.63	%				3.58	%				3.60	%
NIM				4.29	%				4.24	%				4.15	%
NIMTE^*				4.35	%				4.30	%				4.21	%
Cost of funds				1.64	%				1.60	%				1.31	%
Average portfolio loans to average
interest-earning assets		72.29	%				71.87	%				67.39	%
Average portfolio loans to average total deposits		76.77	%				75.92	%				71.65	%
Average non-interest deposits to average
total deposits		28.67	%				29.05	%				31.57	%
Average interest-earning assets to average
interest-bearing liabilities		145.37	%				145.64	%				148.34	%

Additional Financial Information
(Dollars in thousands) (Unaudited)

Average Balances, Yields, and Rates

	Year-to-date
	September 30, 2024					September 30, 2023
	Average			Average Tax Equivalent		Average			Average Tax Equivalent
	Balance			Yield/Rate		Balance			Yield/Rate
Assets
Interest bearing deposits in other banks	$35,747			5.34	%	$79,362			4.82	%
Portfolio investments		643,221		2.82	%		723,693		2.41	%
Loans held for sale		63,917		6.14	%		40,433		6.06	%
Portfolio loans		1,857,756		6.85	%		1,608,293		6.46	%
Total interest-earning assets		2,600,641		5.81	%		2,451,781		5.30	%
Nonearning assets		200,619					192,430
Total assets	$2,801,260					$2,644,211
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$1,751,179			2.20	%	$1,577,308			1.51	%
Borrowings		35,327		3.76	%		52,075		4.23	%
Total interest-bearing liabilities		1,786,506		2.23	%		1,629,383		1.60	%
Noninterest-bearing demand deposits		711,197					746,251
Other liabilities		57,097					42,596
Shareholders’ equity		246,460					225,981
Total liabilities and shareholders’ equity	$2,801,260					$2,644,211
Net spread				3.58	%				3.70	%
NIM				4.23	%				4.17	%
NIMTE^*				4.29	%				4.24	%
Cost of funds				1.59	%				1.10	%
Average portfolio loans to average interest-earning assets		71.43	%				65.60	%
Average portfolio loans to average total deposits		75.45	%				69.22	%
Average non-interest deposits to average total deposits		28.88	%				32.12	%
Average interest-earning assets to average interest-bearing liabilities		145.57	%				150.47	%

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

Capital Data (At quarter end)


			September 30, 2024		June 30, 2024		September 30, 2023
Book value per share			$47.27		$44.93		$40.60
Tangible book value per share^*			$44.36		$42.03		$37.72
Total shareholders’ equity/total assets			8.78	%	8.76	%		8.07		%
Tangible Common Equity/Tangible Assets^*			8.28	%	8.24	%		7.54		%
Tier 1 Capital / Risk Adjusted Assets			11.53	%	11.68	%		11.67		%
Total Capital / Risk Adjusted Assets			12.50	%	12.58	%		12.58		%
Tier 1 Capital / Average Assets			9.08	%	9.17	%		9.02		%
Shares outstanding			5,501,943		5,501,562			5,548,436
Total unrealized loss on AFS debt securities, net of income taxes			($7,617)		($15,197)			($26,526		)
Total unrealized gain on derivatives and hedging activities, net of income taxes			$863		$1,212		$1,485

Profitability Ratios
	September 30, 2024	June 30, 2024	March 31, 2024		December 31, 2023		September 30, 2023
For the quarter:
NIM	4.29%	4.24%	4.16%		4.06%				4.15%
NIMTE^*	4.35%	4.30%	4.22%		4.12%				4.21%
Efficiency ratio	66.11%	68.78%	68.93%		72.21%				66.64%
Return on average assets	1.22%	1.31%	1.19%		0.93%				1.22%
Return on average equity	13.69%	14.84%	13.84%		11.36%				14.67%

	September 30,		September 30,
	2024		2023
Year-to-date:
NIM	4.23	%	4.17	%
NIMTE^*	4.29	%	4.24	%
Efficiency ratio	67.86	%	72.79	%
Return on average assets	1.24	%	0.95	%
Return on average equity	14.12	%	11.11	%

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

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

Net interest margin on a tax equivalent basis

Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2024 and 2023. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

	Three Months Ended
		September 30,						March 31,			December			September 30,
		2024		June 30, 2024				2024			31, 2023			2023
Net interest income	$28,842			$27,053			$26,447			$26,732			$26,350
Divided by average interest-bearing assets		2,674,291			2,568,266			2,558,558			2,612,297			2,516,126
Net interest margin (“NIM”)²		4.29	%		4.24	%		4.16	%		4.06	%		4.15	%

Net interest income	$28,842			$27,053			$26,447			$26,732			$26,350
Plus: reduction in tax expense related to tax-exempt interest income		385			378			379			374			373
		$29,227			$27,431			$26,826			$27,106			$26,723
Divided by average interest-bearing assets NIMTE²		2,674,291			2,568,266			2,558,558			2,612,297			2,516,126
		4.35	%		4.30	%		4.22	%		4.12	%		4.21	%

	Year-to-date
	September 30,			September 30,
		2024			2023
Net interest income	$82,342			$76,524
Divided by average interest-bearing assets		2,600,641			2,451,781
Net interest margin (“NIM”)³		4.23	%		4.17	%
Net interest income Plus: reduction in tax expense related to	$82,342			$76,524
tax-exempt interest income		1,142			1,202
	$83,484			$77,726
Divided by average interest-bearing assets		2,600,641			2,451,781
NIMTE³		4.29	%		4.24	%

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

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

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

Tangible Book Value Per Share

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

		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Total shareholders’ equity	$260,050		$247,200		$239,327		$234,718		$225,259
Divided by shares outstanding		5,502		5,502		5,500		5,513		5,548
Book value per share	$47.27		$44.93		$43.52		$42.57		$40.60

		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
Total shareholders’ equity	$260,050		$247,200		$239,327		$234,718		$225,259
Less: goodwill and intangible assets		15,967		15,967		15,967		15,967		15,973
	$244,083		$231,233		$223,360		$218,751		$209,286
Divided by shares outstanding		5,502		5,502		5,500		5,513		5,548
Tangible book value per share	$44.36		$42.03		$40.61		$39.68		$37.72

Tangible Common Equity to Tangible Assets

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

Northrim BanCorp, Inc.	September 30,			March 31,		December			September 30,
	2024	June 30, 2024		2024			31, 2023			2023
Total shareholders’ equity	$260,050	$247,200	$239,327			$234,718			$225,259
Total assets	2,963,392	2,821,668		2,759,560			2,807,497			2,790,189
Total shareholders’ equity to total assets	8.78 %	8.76 %		8.67	%		8.36	%		8.07	%
Northrim BanCorp, Inc.	September 30,		March 31,			December			September 30,
	2024	June 30, 2024		2024			31, 2023			2023
Total shareholders’ equity	$260,050	$247,200	$239,327			$234,718			$225,259
Less: goodwill and other intangible assets, net	15,967	15,967		15,967			15,967			15,973
Tangible common shareholders’ equity	$244,083	$231,233	$223,360			$218,751			$209,286
Total assets	$2,963,392	$2,821,668	$2,759,560			$2,807,497			$2,790,189
Less: goodwill and other intangible assets, net	15,967	15,967		15,967			15,967			15,973
Tangible assets	$2,947,425	$2,805,701	$2,743,593			$2,791,530			$2,774,216
Tangible common equity ratio	8.28 %	8.24 %		8.14	%		7.84	%		7.54	%

Note Transmitted on GlobeNewswire on October 23, 2024, at 2:30 pm Alaska Standard Time.


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

The MIL Network –

January 25, 2025

MIL-OSI: NEWS RELEASE: Calgary hosts Canada’s largest clean energy conference

Source: GlobeNewswire (MIL-OSI)

PHOTO: Vittoria Bellissimo, CanREA’s President and CEO, delivered opening remarks at Electricity Transformation Canada 2024 in Calgary, Alberta.

CALGARY, Alberta, Oct. 23, 2024 (GLOBE NEWSWIRE) — More than 2,600 people attended Canada’s premier clean-energy industry conference and exhibition, the flagship conference of the Canadian Renewable Energy Association (CanREA), held again this year in Calgary, Alberta.

Held from October 21 to 23, Electricity Transformation Canada (ETC) 2024 offered an in-depth educational program in which more than 125 speakers covered topics focusing on the risks and opportunities facing the industry, the affordability of renewables, growth across Canada, and much more.

The three-day conference also featured more than 150 exhibitors showcasing new and innovative technology solutions from distributors, engineers, investors, installers and manufacturers in the sector of wind energy, solar energy, energy storage and other clean energy technologies.

“We have now entered the Age of Electricity, in which affordability is paramount—and CanREA members are building the lowest-cost electricity generation sources in the world today. Complemented by energy storage, wind and solar will accelerate our transition to a sustainable energy future,” said Vittoria Bellissimo, CanREA’s President and CEO, in her opening remarks on Monday night.

Her remarks echoed the International Energy Agency’s new World Energy Outlook, released last week, which states that clean energy is entering the energy system at an unprecedented rate, including more than 560 GW of new renewables capacity added in 2023, investment flows to clean energy projects approaching 2 trillion USD each year, and electricity use growing at twice the pace of overall energy demand over the last decade.

“Globally, there has never been so much investment in new, affordable, clean sources of electricity,” Bellissimo pointed out, adding that, here in Canada, we need to make a commitment to clean energy, with a diverse energy strategy that will allow us to meet a rising demand for electricity.

“In Canada, provinces across the country are actively investing in renewables and energy storage, with more than 10,000 MW of upcoming procurements currently either underway, being procured, or being planned, representing well over $20B in investment,” she said.

These procurements are all tracked in CanREA’s clean-energy procurement calendar, a central resource for wind, solar and energy storage procurement opportunities across Canada. CanREA launched a beta version of this calendar on day three of ETC, which is available here: https://renewablesassociation.ca/canreas-clean-energy-procurement-calendar/

With electricity’s role in Canada’s energy landscape growing ever-more significant, the discussions at ETC are more timely than ever.

Don’t miss out next year, when ETC 2025 will be held October 6 to 8 at the Enercare Center in Toronto, Ontario.

Quotes

“We have now entered the Age of Electricity, in which affordability is paramount—and CanREA members are building the lowest-cost electricity generation sources in the world today. Complemented by energy storage, wind and solar will accelerate our transition to a sustainable energy future. Globally, there has never been so much investment in new, affordable, clean sources of electricity. In Canada, provinces across the country are actively investing in renewables and energy storage, with more than 10,000 MW of upcoming procurements currently either underway, being procured, or being planned, representing well over $20B in investment.”

—Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association (CanREA)

For interview opportunities, please contact:

Bridget Wayland, Senior Director of Communications
Canadian Renewable Energy Association
communications@renewablesassociation.ca

About Electricity Transformation Canada (ETC)

Electricity Transformation Canada (ETC) is presented by the Canadian Renewable Energy Association (CanREA), in partnership with RE+ Events, the Italian German Exhibition Group and Deutsche Messe. CanREA is the voice of wind energy, solar energy, and energy storage in Canada. RE+ Events is a global event management organization with a focus on the clean energy industry. The Italian German Exhibition Group is one of the world’s largest and most active event organizers. Deutsche Messe, based in Germany, is one of the leading trade-fair companies worldwide.

ETC’s mission is to support the accelerated transformation of Canada’s electricity sector by advancing innovative and practical solutions for a sustainable and resilient energy system. ETC aims to inspire attendees with a shared vision of innovation and collaboration to help Canada’s clean energy industry move forward. For more information: https://electricity-transformation.ca/

About CanREA

The Canadian Renewable Energy Association (CanREA) is the voice for wind energy, solar energy and energy storage solutions that will power Canada’s energy future. We work to create the conditions for a modern energy system through stakeholder advocacy and public engagement. Our diverse members are uniquely positioned to deliver clean, low-cost, reliable, flexible and scalable solutions for Canada’s energy needs. For more information on how Canada can use wind energy, solar energy and energy storage to help achieve its net-zero commitments, consult “Powering Canada’s Journey to Net-Zero: CanREA’s 2050 Vision.” Follow us on Twitter/X and LinkedIn. Subscribe to our newsletter here. Learn more at renewablesassociation.ca.mailto:bwayland@renewablesassociation.ca

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b3c64cd3-0d5d-4ec8-99b9-5ffad12e094c

The MIL Network –

January 25, 2025

MIL-OSI: ACAMS Announces Hong Kong Scholarship Recipients for the Certified Global Sanctions Specialist (CGSS) Certification

Source: GlobeNewswire (MIL-OSI)

HONG KONG, Oct. 24, 2024 (GLOBE NEWSWIRE) — ACAMS, a leading global membership organization dedicated to the fight against illicit finance, in partnership with the ACAMS Hong Kong Chapter, is pleased to announce the recipients of its CGSS scholarship program for Hong Kong permanent residents. The program aims to cultivate local talent in sanctions compliance, arming them with the expertise, resources and peer support to excel in their careers and reinforce AFC efforts in Asia.

This initiative is timely as Hong Kong navigates the evolving sanctions landscape, requiring compliance professionals with advanced skills and up-to-date knowledge.

Five AFC professionals who are permanent residents of Hong Kong and work in sanctions functions or at financial institutions were awarded:

CGSS exam package, including all study materials;
Virtual classroom;
One-year ACAMS membership.

The latest CGSS certification program features up-to-date, real-world case studies and a flexible modular format to support practical learning for busy professionals. CGSS-certified individuals are equipped with specialized skills to better manage sanctions risk, establish an effective sanctions compliance program and demonstrate compliance with constantly evolving regulatory requirements.

“We are delighted to support these talented individuals as they advance their careers and amplify anti-financial crime efforts in Hong Kong and the region,” said Neil Sternthal, ACAMS CEO. “The modular format of the Certified Global Sanctions Specialist (CGSS) certification is specifically designed to accommodate the demanding schedules of AFC professionals while ensuring they receive targeted training to effectively combat financial crime.”

Moray Taylor-Smith and Ajay Budhrani, Co-Chairs of the Hong Kong Chapter, added: “The financial crime landscape is increasingly complex, particularly with the rise of digital assets, sophisticated laundering schemes and evolving sanctions regimes. By investing in motivated and capable talent through this scholarship, we are strengthening the region’s defenses and empowering the next generation of AFC leaders to make a significant impact.”

Scholarship submissions were reviewed by a select panel of judges: Moray Taylor-Smith, Hong Kong Chapter Co-Chair and Executive Director of Security, Integrity and Information Security, The Hong Kong Jockey Club; Jude Jung, Consultant of AFC Solutions, ACAMS for the Republic of Korea; Justin Lam, Head of Transaction and Fraud Monitoring, a retail bank in Hong Kong; and Tony Tse T F, Chief Inspector, Hong Kong Police Force.

More details about the scholarship recipients and judges are available here.

Find out more about the ACAMS Scholarship initiative here.

About ACAMS®

ACAMS is a leading international membership organization dedicated to providing opportunities for anti-financial crime education, best practices, and peer-to-peer networking to AFC professionals globally. With over 110,000 members across 200+ jurisdictions and territories, ACAMS is committed to the mission of ending financial crime through the provision of anti-money laundering/counterterrorism-financing and sanctions knowledge-sharing, thought leadership, risk-mitigation services, ESG initiatives, and platforms for public-private dialogue. The association’s CAMS certification is the gold-standard qualification for AFC professionals, while its CGSS and CCAS certifications are for sanctions professionals and AFC practitioners working in the crypto space, respectively. ACAMS’ 60+ Chapters globally further amplify the association’s mission through training and networking initiatives. Visit acams.org for more information.

About the CGSS Certification

Developed for professionals with 18 months to two years of experience in financial crime compliance, the CGSS certification helps them demonstrate the knowledge necessary to manage risks related to sanctions and ensure greater sanctions compliance. CGSS has been developed with active input from a cohort of recognized sanctions and AFC subject matter experts, including those from regulatory and law enforcement backgrounds. CGSS answers the need for an in-depth training program in sanctions compliance, to help industry professionals better respond to the current challenges. It can be deployed to teams globally, ensuring they are trained against the same standards and their specialized knowledge is formally recognized. CGSS-certified teams enable organizations to better manage sanctions risk, establish an effective sanctions compliance program and demonstrate compliance with constantly evolving regulatory requirements.

About the ACAMS Hong Kong Chapter

The ACAMS Hong Kong Chapter was founded in March 2012 to facilitate cooperation between private and public sector professionals in deterring financial crime. The Chapter’s mission is to strive for excellence in preventing money laundering and the financing of terrorism, by creating a forum in Hong Kong and Asia for training and the exchange of ideas within the financial services community. In 2021, it won the title of “ACAMS Chapter of the Year.”

Find out more about the ACAMS Hong Kong Chapter here.

Media Contact:
Rose Dahlan
rdahlan@acams.org

The MIL Network –

January 25, 2025

MIL-OSI: Faircourt Asset Management Inc. Announces October Distribution

Source: GlobeNewswire (MIL-OSI)

Toronto, ON, Oct. 23, 2024 (GLOBE NEWSWIRE) — Faircourt Asset Management Inc., as Manager of the Faircourt Fund (NEO:FGX), is pleased to announce the monthly distribution payable on the Shares of the below listed Fund.

Faircourt Funds	Trading Symbol	Distribution Amount (per share/unit)	Ex-Dividend Date	Record Date	Payable Date
Faircourt Gold Income Corp.	FGX	$0.024	October 31, 2024	October 31, 2024	November 14, 2024

Faircourt Asset Management Inc. is the Investment Advisor for Faircourt Gold Income Corp.

This press release is not for distribution in the United States or over United States wire services.

For further information on the Faircourt Funds, please visit www.faircourtassetmgt.com or
please contact 1-800-831-0304.

You will usually pay brokerage fees to your dealer if you purchase or sell Shares of the Fund on the NEO Exchange or other alternative Canadian trading system (an “exchange”). If the Shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying Shares of the Fund and may receive less than the current net asset value when selling them.

There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in the public filings available at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

The MIL Network –

January 25, 2025

Category: GlobeNewswire