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Category: Intelligence Agencies

  • MIL-OSI Security: Justice Department Announces Seizure of Cybercrime Websites Selling Hacking Tools to Transnational Organized Crime Groups

    Source: United States Attorneys General 1

    The Justice Department today announced the coordinated seizure of 39 domains and their associated servers in an international disruption of a Pakistan-based network of online marketplaces selling hacking and fraud-enabling tools operated by a group known as Saim Raza (also known as HeartSender). The seizures were conducted in coordination with the Dutch National Police.

    According to the affidavit filed in support of these seizures, Saim Raza has used these cybercrime websites since at least 2020 to sell phishing toolkits and other fraud-enabling tools to transnational organized crime groups, who used them to target numerous victims in the United States, resulting in over $3 million in victim losses.

    The Saim Raza-run websites operated as marketplaces that advertised and facilitated the sale of tools such as phishing kits, scam pages, and email extractors, often used to build and maintain fraud operations. Not only did Saim Raza make these tools widely available on the open internet, it also trained end users on how to use the tools against victims by linking to instructional YouTube videos on how to execute schemes using these malicious programs, making them accessible to criminal actors that lacked this technical criminal expertise. The group also advertised its tools as “fully undetectable” by antispam software.

    The transnational organized crime groups and other cybercrime actors who purchased these tools primarily used them to facilitate business email compromise schemes wherein the cybercrime actors tricked victim companies into making payments to a third party. Those payments would instead be redirected to a financial account the perpetrators controlled, resulting in significant losses to victims. These tools were also used to acquire victim user credentials and utilize those credentials to further these fraudulent schemes. The seizure of these domains is intended to disrupt the ongoing activity of these groups and stop the proliferation of these tools within the cybercriminal community.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas, and Special Agent in Charge Douglas Williams of the FBI Houston Field Office made the announcement.

    The FBI Houston Field Office is investigating the case. The Justice Department appreciates the cooperation and significant assistance law enforcement partners in the Netherlands have provided.

    Trial Attorney Gaelin Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Rodolfo Ramirez for the Southern District of Texas are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI: The Victory Bancorp, Inc. Announces 2024 Fourth Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    LIMERICK, Pa., Jan. 30, 2025 (GLOBE NEWSWIRE) — The Victory Bancorp, Inc. (OTCQX: VTYB), the holding company for The Victory Bank, today announced record growth and financial highlights for the year ended December 31, 2024.

    Financial Highlights for 2024:

    • Loan Growth: Loans increased by $26.6 million despite much higher interest rates and softening demand for loans, underlining the Bank’s commitment to a strong lending culture and continued investment in lending infrastructure.
    • Deposit Growth: Deposits grew by $33 million in 2024, driven by the bank’s focus on delivering exceptional customer service and focus on relationship banking.
    • Capital Acquisition: The Bancorp successfully issued $4.65 million of subordinated debt in the fourth quarter, of which $2.5 million was down-streamed to the bank to support growth initiatives and enhance capital strength.
    • Net consolidated earnings: Earnings rose by $83 thousand year-over-year in the fourth quarter. Compared to the third quarter, earnings remained stable, with a slight decrease from $586 thousand to $558 thousand. The return on average equity for the fourth quarter was 7.58%.
    • Book Value: Book value per common share remained nearly consistent, decreasing slightly from $14.89 in the third quarter to $14.84 in the fourth quarter. This stability reflects a solid foundation and demonstrates the company’s ability to maintain value per share despite market fluctuations.
    • Stockholders’ Equity: As of December 31, 2024, the company’s equity position grew by $1.4 million compared to the end of 2023.
    • Dividends: The bank paid a quarterly cash dividend of $0.065 per share; $0.26 per share for the calendar year

    Loan Quality Metrics: The bank maintained superior loan quality metrics that outperformed peers:

    • Losses to Average Loans at 0.0% as of December 31, 2024, compared to the peer average of 0.05% (as of September 30, 2024).
    • 30-89 Day Past Due Loans at 0.01%, significantly better than the peer average of 0.42%.
    • Non-Performing Loans at 0.05%, well below the peer average of 0.49%.

    Bank Leader, Joseph W. Major, stated, “The year 2024 has been a remarkable period of growth and achievement. Despite a challenging economic landscape, our team’s dedication and strategic initiatives have driven record results. The $26.7 million growth in our loan portfolio and $33 million increase in deposits underscore our ability to attract and retain high-value clients, and earnings showed substantial improvement based on improvements to net interest margin and overall balance sheet growth. Additionally, our successful capital acquisition strengthens our financial foundation and positions us for continued expansion.”

    “Our commitment to maintaining exceptional asset quality remains unwavering. The fact that our loan quality metrics significantly outperform peers is a testament to the vast experience of our lending and credit teams, our disciplined approach to risk management and our focus on long-term stability.”

    “We are excited about the future and remain committed to delivering exceptional value to our shareholders, clients, and communities.”

    Victory Bancorp, Inc. is traded on the OTCQX market under the symbol VTYB (https://www.otcmarkets.com) and is the parent company of The Victory Bank, a Pennsylvania state-chartered commercial bank, headquartered in Limerick, Pennsylvania, which is located just outside the Philadelphia market in Montgomery County. The Victory Bank was established in 2008 as a specialized business lender that provides high-quality banking services to small and mid-sized businesses and professionals through its three offices located in Montgomery and Berks Counties, Pennsylvania. Additional information about Victory Bancorp is available on its website, VictoryBank.com.

    This presentation may contain forward-looking statements (within the meaning of Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products, and services.

    Contact:
    Joseph W. Major    ,
    Chairman and Chief Executive Officer

    Robert H. Schultz,
    Chief Financial Officer, Chief Operating Officer

    Owen Magers
    Investor Relations
    484-791-3435

    The Victory Bancorp, Inc.
    548 N. Lewis Rd.
    Limerick, PA 19468

             
    CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)        
    (dollars in thousands, except per share data)            
        December 31,   September 30,   December 31,
    Selected Financial Data   2024   2024   2023
                 
    Investment securities $ 44,642   $ 46,110   $ 47,931  
                 
    Loans, net of allowance for loan losses   390,954     395,213     364,383  
                 
    Total assets   461,024     467,939     442,163  
                 
    Deposits   397,080     398,169     364,032  
                 
    Borrowings   15,440     24,692     36,200  
                 
    Subordinated debt   17,309     12,851     12,830  
                 
    Stockholders’ equity $ 29,337   $ 29,437   $ 27,948  
                 
    Book value per common share $ 14.84   $ 14.89   $ 14.17  
                 
    Allowance/loans   0.92 %   0.91 %   0.94 %
                 
    Nonperforming assets/total assets   0.05 %   0.04 %   0.49 %
                 
        3 Months Ended
        December 31,   September 30,
    		   December 31,
    Selected Operations Data   2024   2024   2023
                 
    Interest income $ 7,281   $ 7,526   $ 6,680  
                 
    Interest expense   3,886     4,064     3,337  
                 
    Net interest income   3,395     3,462     3,343  
                 
    Provision for loan losses   (32 )   71     170  
                 
    Other income   299     239     210  
                 
    Other expense   3,000     2,895     2,748  
                 
    Income before income taxes   726     735     635  
                 
    Income taxes   (168 )   (149 )   (160 )
                 
    Net income $ 558   $ 586   $ 475  
    Earnings per common share (basic) $ 0.28   $ 0.30   $ 0.24  
                 
    Earnings per common share (diluted) $ 0.28   $ 0.29   $ 0.23  
                 
    Return on average assets (annualized)   0.48 %   0.50 %   0.45 %
                 
    Return on average equity (annualized)   7.58 %   8.14 %   6.97 %
                 
    Net charge-offs (recoveries)/average loans   0.00 %   0.00 %   0.00 %

    The MIL Network –

  • MIL-OSI USA: Durbin Delivers Opening Statement In Senate Judiciary Committee Hearing For President Trump’s Pick To Be FBI Director, Kash Patel

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin
    January 30, 2025
    WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, today delivered an opening statement during the Senate Judiciary Committee nomination hearing for Kash Patel, President Trump’s nominee to lead the Federal Bureau of Investigation (FBI).
    Key Quotes:
    “Mr. Patel has neither the experience, the temperament, nor the judgment to lead an agency of 38,000 [people] and 400 field offices around the globe. During the time I’ve served on this Committee, I’ve had the opportunity to consider four prior FBI Director nominations. Each one was a Republican, and I voted for all of them. So, my concerns about the Director of the FBI are not partisan.”
    “As much as Republicans claim that President Biden and former Attorney General Garland weaponized the FBI, let’s look at the record: President Biden kept the FBI Director, a lifelong Republican who had been appointed by President Trump. Contrast that with President Trump, who fired his first FBI Director, James Comey, and forced out his second FBI Director, Chris Wray, for being insufficiently loyal. With Mr. Patel, obviously the President has found a loyalist.”
    “Mr. Patel’s loyalty includes touting conspiracy theories and threaten[ing to go after President Trump’s enemies.] How do we know Mr. Patel’s theories? His beliefs, what motivates him, and what he really believes? He wrote it in a book. The book [is titled] Government Gangsters, and I urge all of you to read [it] before you cast a vote for [him]. In it, Mr. Patel has published an enemies list of 60 people who he calls, ‘members of the deep state.’ This list includes many distinguished public servants who have dedicated their lives to our nation.” 
    “Then there is Mr. Patel’s plan to ‘shut down the F.B.I. Hoover Building on Day 1 and reopen it the next day as a museum of the ‘deep state.’’ And he has said, ‘We’re going to come after the people in the media, we’re going to come after you, whether it’s criminally or civilly, [and] we’re putting you all on notice.’”
    “Does this sound like the kind of nonpartisan, law enforcement professional who should lead the FBI? Not to me. This is someone who has left behind a trail of grievances throughout his life, lashing out at anyone who disrespects him or doesn’t agree with him.”
    “Mr. Patel’s record is clear: he traffics in debunked conspiracy theories that serve or benefit his political beliefs. Let’s start with January 6… I will always be grateful to the U.S. Capitol police officers who risked their lives defending me, members of Congress, and visitors of the United States Capitol on that day. Mr. Patel posted on social media, ‘Jan. 6 never an insurrection: cowards in uniform exposed.’ Let me repeat that. ‘Cowards in uniform.’ Who was in the Capitol building on January 6 in uniform—the Capitol Police were. Do you think they were cowards?… And Mr. Patel claims that the FBI, the agency he aspires to lead, ‘was planning January 6 for a year.’ Mr. Patel has gone so far as to co-produce and sell musical recordings of a song performed by January 6 rioters who violently assaulted police officers.”
    “The FBI plays a critical role in keeping Americans safe from terrorism, violent crime, and other threats. Our nation needs an FBI Director who understands the gravity of this mission and is ready on day one, not someone who is consumed by his own personal political grievances. The American people deserve an FBI Director who is focused on keeping the public safe from terrorism, drug trafficking, and violent crime, not the checklist of personal grievances we find in this book. Mr. Patel, your record makes clear that you are not that person.”
      
    Video of Durbin’s opening statement is available here.
    Audio of Durbin’s opening statement is available here.
    Footage of Durbin’s opening statement is available here for TV Stations.
    -30-

    MIL OSI USA News –

  • MIL-OSI USA: Cracked and Nulled Marketplaces Disrupted in International Cyber Operation

    Source: US State of California

    At Least 17M U.S. Victims Affected

    The Justice Department today announced its participation in a multinational operation involving actions in the United States, Romania, Australia, France, Germany, Spain, Italy, and Greece to disrupt and take down the infrastructure of the online cybercrime marketplaces known as Cracked and Nulled. The operation was announced in conjunction with Operation Talent, a multinational law enforcement operation supported by Europol to investigate Cracked and Nulled.

    Operation Talent Seizure Banner

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Trini E. Ross for the Western District of New York, U.S. Attorney Jaime Esparza for the Western District of Texas, Assistant Director Brian A. Vorndran of the FBI’s Cyber Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, and Special Agent in Charge Aaron Tapp for the FBI San Antonio Field Office made the announcement.

    Cracked

    According to seizure warrants unsealed today, the Cracked marketplace has been selling stolen login credentials, hacking tools, and servers for hosting malware and stolen data — as well as other tools for carrying out cybercrime and fraud — since March 2018. Cracked had over four million users, listed over 28 million posts advertising cybercrime tools and stolen information, generated approximately $4 million in revenue, and impacted at least 17 million victims from the United States. One product advertised on Cracked offered access to “billions of leaked websites” allowing users to search for stolen login credentials. This product was recently allegedly used to sextort and harass a woman in the Western District of New York. Specifically, a cybercriminal entered the victim’s username into the tool and obtained the victim’s credentials for an online account. Using the victim’s credentials, the subject then cyberstalked the victim and sent sexually demeaning and threatening messages to the victim. The seizure of these marketplaces is intended to disrupt this type of cybercrime and the proliferation of these tools in the cybercrime community.

    The FBI, working in coordination with foreign law enforcement partners, identified a series of servers that hosted the Cracked marketplace infrastructure and eight domain names used to operate Cracked. They also identified servers and domain names for Cracked’s payment processor, Sellix, and the server and domain name for a related bulletproof hosting service. All of these servers and domain names have been seized pursuant to domestic and international legal process. Anyone visiting any of these seized domains will now see a seizure banner that notifies them that the domain has been seized by law enforcement authorities.

    The FBI Buffalo Field Office is investigating the case.

    Senior Counsel Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Charles Kruly for the Western District of New York are prosecuting the case.

    Nulled

    The Justice Department announced the seizure of the Nulled website domain and unsealed charges against one of Nulled’s administrators, Lucas Sohn, 29, an Argentinian national residing in Spain. According to the unsealed complaint affidavit, the Nulled marketplace has been selling stolen login credentials, stolen identification documents, hacking tools, as well as other tools for carrying out cybercrime and fraud, since 2016. Nulled had over five million users, listed over 43 million posts advertising cybercrime tools and stolen information, and generated approximately $1 million in yearly revenue. One product advertised on Nulled purported to contain the names and social security numbers of 500,000 American citizens.

    The FBI, working in coordination with foreign law enforcement partners, identified the servers that hosted the Nulled marketplace infrastructure, and the domain used to operate Nulled. The servers and domain have been seized pursuant to domestic and international legal process. Anyone visiting the Nulled domain will now see a seizure banner that notifies them that the domain has been seized by law enforcement authorities.

    According to the complaint, Sohn was an active administrator of Nulled and performed escrow functions on the website. Nulled’s customers would use Sohn’s services to complete transactions involving stolen credentials and other information. For his actions, Sohn has been charged with conspiracy to traffic in passwords and similar information through which computers may be accessed without authorization; conspiracy to solicit another person for the purpose of offering an access device or selling information regarding an access device; and conspiracy to possess, transfer, or use a means of identification of another person with the intent to commit or to aid and abet or in connection with any unlawful activity that is a violation of federal law.

    If convicted, Sohn faces a maximum penalty of five years in prison for conspiracy to traffic in passwords, 10 years in prison for access device fraud, and 15 years in prison for identity fraud.

    The FBI Austin Cyber Task Force is investigating the case. The Task Force participants include the Naval Criminal Investigative Service, IRS Criminal Investigation, Defense Criminal Investigative Service, and the Department of the Army Criminal Investigation Division, among other agencies.

    Assistant U.S. Attorneys G. Karthik Srinivasan and Christopher Mangels for the Western District of Texas are prosecuting the case, with Assistant U.S. Attorney Mark Tindall for the Western District of Texas handling the forfeiture component.

    The Justice Department worked in close cooperation with investigators and prosecutors from several jurisdictions on the takedown of both the Cracked and Nulled marketplaces, including the Australian Federal Police, Europol, France’s Anti-Cybercrime Office (Office Anti-cybercriminalité) and Cyber Division of the Paris Prosecution Office, Germany’s Federal Criminal Police Office (Bundeskriminalamt) and Prosecutor General’s Office Frankfurt am Main – Cyber Crime Center (Generalstaatsanwaltschaft Frankfurt am Main – ZIT), the Spanish National Police (Policía Nacional) and Guardia Civil, the Hellenic Police (Ελληνική Αστυνομία), Italy’s Polizia di Stato and the General Inspectorate of Romanian Police (Inspectoratul General al Poliției Romane). The Justice Department’s Office of International Affairs provided significant assistance.

    A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL OSI USA News –

  • MIL-OSI Security: Former Sanger Police Officer Convicted on Eight Counts of Sexually Assaulting Women While on Duty

    Source: Office of United States Attorneys

    FRESNO, Calif — On Wednesday, a federal jury in Fresno convicted former Sanger Police Department Officer J. DeShawn Torrence, 42, of eight counts of deprivation of constitutional rights under color of law for sexually assaulting four women whom he encountered during the course of his official duties. The jury found that the offenses included kidnapping, aggravated sexual abuse, and attempted aggravated sexual abuse, and also caused bodily injury.

    Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Michele Beckwith for the Eastern District of California, and Special Agent in Charge Siddartha Patel of the FBI Sacramento Field Office made the announcement.

    The evidence at trial proved that Torrence sexually assaulted four women. He kidnapped a 21‑year-old woman who was walking to a store to buy groceries for her young children, drove her outside of town in his police car, and sexually assaulted her at an isolated dead end. Torrence forcibly raped a second victim, a 67-year-old woman, after following her into her home during a DUI investigation. With a third victim, Torrence showed up at her door in his police uniform after midnight, entered her apartment, pinned her against the kitchen counter, and sexually assaulted her. Torrence showed up multiple times at the home of a fourth victim, a domestic violence victim, supposedly to investigate a prior domestic violence incident. During those follow up visits, Torrence forced the victim to expose sensitive parts of her body for no legitimate reason, and he sexually assaulted her.

    “Law enforcement officers are entrusted with great power to protect the public and keep them safe from harm. This officer’s crimes were an egregious breach of that trust and an appalling abuse of power, as he repeatedly preyed on the women in his community and violated their civil rights,” said Acting U.S. Attorney Beckwith. “We stand ready to investigate and prosecute such crimes with all the tools we have available.”

    “The FBI Sacramento Field Office is grateful to the brave victims who came forward and trusted us to investigate the allegations of sexual abuse at the hands of a police officer,” said Special Agent in Charge Sid Patel. “The FBI is deeply committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”

    The FBI Sacramento Field Office investigated the case, with assistance from the Fresno County Sheriff’s Office. Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Karen Escobar for the Eastern District of California are prosecuting the case.

    Torrence is scheduled to be sentenced on May 7, 2025. Torrence faces a maximum penalty of life in prison and a $250,000 fine for five of the counts. The remaining counts each carry a maximum penalty of one year in prison and a fine of up to $100,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    MIL Security OSI –

  • MIL-OSI USA: Former California Police Officer Convicted on Eight Counts of Sexually Assaulting Women While on Duty

    Source: US State of Vermont

    A federal jury in Fresno, California, convicted yesterday former Sanger, California, Police Department officer J. DeShawn Torrence, 42, of eight counts of deprivation of constitutional rights under color of law for sexually assaulting four women whom he encountered during the course of his official duties. The jury found that the offenses included kidnapping, aggravated sexual abuse, and attempted aggravated sexual abuse, and caused bodily injury.

    “Law enforcement officers are entrusted with great power to protect the public and keep them safe from harm. This officer’s crimes were an egregious breach of that trust and an appalling abuse of power, as he repeatedly preyed on the women in his community and violated their civil rights,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “We stand ready to investigate and prosecute such crimes with all the tools we have available.”

    “The FBI Sacramento Field Office is grateful to the brave victims who came forward and trusted us to investigate the allegations of sexual abuse at the hands of a police officer,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The FBI is deeply committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”

    The evidence at trial proved that Torrence sexually assaulted four women. He kidnapped a 21-year-old woman who was walking to a store to buy groceries for her young children, drove her outside of town in his police car, and sexually assaulted her at an isolated dead end. Torrence forcibly raped a second victim, a 67-year-old woman, after following her into her home during a DUI investigation. With a third victim, Torrence showed up at her door in his police uniform after midnight, entered her apartment, pinned her against the kitchen counter, and sexually assaulted her. Torrence showed up multiple times at the home of a fourth victim, a domestic violence victim, supposedly to investigate a prior domestic violence incident. During those follow up visits, Torrence forced the victim to expose sensitive parts of her body for no legitimate reason, and he sexually assaulted her. The jury also heard testimony that Torrence sexually assaulted a fifth woman while acting in his capacity as a police officer.

    Five of the counts each carry a maximum penalty of life in prison and a $250,000 fine. The three remaining counts each carry a maximum penalty of one year in prison and a fine of up to $100,000. Torrence is scheduled to be sentenced on May 7.

    Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division made the announcement.

    The FBI Sacramento Field Office investigated the case, with assistance from the Fresno County Sheriff’s Office.

    Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Karen Escobar for the Eastern District of California are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI Security: Cracked and Nulled Marketplaces Disrupted in International Cyber Operation

    Source: United States Attorneys General 2

    At Least 17M U.S. Victims Affected

    The Justice Department today announced its participation in a multinational operation involving actions in the United States, Romania, Australia, France, Germany, Spain, Italy, and Greece to disrupt and take down the infrastructure of the online cybercrime marketplaces known as Cracked and Nulled. The operation was announced in conjunction with Operation Talent, a multinational law enforcement operation supported by Europol to investigate Cracked and Nulled.

    Operation Talent Seizure Banner

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Trini E. Ross for the Western District of New York, U.S. Attorney Jaime Esparza for the Western District of Texas, Assistant Director Brian A. Vorndran of the FBI’s Cyber Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, and Special Agent in Charge Aaron Tapp for the FBI San Antonio Field Office made the announcement.

    Cracked

    According to seizure warrants unsealed today, the Cracked marketplace has been selling stolen login credentials, hacking tools, and servers for hosting malware and stolen data — as well as other tools for carrying out cybercrime and fraud — since March 2018. Cracked had over four million users, listed over 28 million posts advertising cybercrime tools and stolen information, generated approximately $4 million in revenue, and impacted at least 17 million victims from the United States. One product advertised on Cracked offered access to “billions of leaked websites” allowing users to search for stolen login credentials. This product was recently allegedly used to sextort and harass a woman in the Western District of New York. Specifically, a cybercriminal entered the victim’s username into the tool and obtained the victim’s credentials for an online account. Using the victim’s credentials, the subject then cyberstalked the victim and sent sexually demeaning and threatening messages to the victim. The seizure of these marketplaces is intended to disrupt this type of cybercrime and the proliferation of these tools in the cybercrime community.

    The FBI, working in coordination with foreign law enforcement partners, identified a series of servers that hosted the Cracked marketplace infrastructure and eight domain names used to operate Cracked. They also identified servers and domain names for Cracked’s payment processor, Sellix, and the server and domain name for a related bulletproof hosting service. All of these servers and domain names have been seized pursuant to domestic and international legal process. Anyone visiting any of these seized domains will now see a seizure banner that notifies them that the domain has been seized by law enforcement authorities.

    The FBI Buffalo Field Office is investigating the case.

    Senior Counsel Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Charles Kruly for the Western District of New York are prosecuting the case.

    Nulled

    The Justice Department announced the seizure of the Nulled website domain and unsealed charges against one of Nulled’s administrators, Lucas Sohn, 29, an Argentinian national residing in Spain. According to the unsealed complaint affidavit, the Nulled marketplace has been selling stolen login credentials, stolen identification documents, hacking tools, as well as other tools for carrying out cybercrime and fraud, since 2016. Nulled had over five million users, listed over 43 million posts advertising cybercrime tools and stolen information, and generated approximately $1 million in yearly revenue. One product advertised on Nulled purported to contain the names and social security numbers of 500,000 American citizens.

    The FBI, working in coordination with foreign law enforcement partners, identified the servers that hosted the Nulled marketplace infrastructure, and the domain used to operate Nulled. The servers and domain have been seized pursuant to domestic and international legal process. Anyone visiting the Nulled domain will now see a seizure banner that notifies them that the domain has been seized by law enforcement authorities.

    According to the complaint, Sohn was an active administrator of Nulled and performed escrow functions on the website. Nulled’s customers would use Sohn’s services to complete transactions involving stolen credentials and other information. For his actions, Sohn has been charged with conspiracy to traffic in passwords and similar information through which computers may be accessed without authorization; conspiracy to solicit another person for the purpose of offering an access device or selling information regarding an access device; and conspiracy to possess, transfer, or use a means of identification of another person with the intent to commit or to aid and abet or in connection with any unlawful activity that is a violation of federal law.

    If convicted, Sohn faces a maximum penalty of five years in prison for conspiracy to traffic in passwords, 10 years in prison for access device fraud, and 15 years in prison for identity fraud.

    The FBI Austin Cyber Task Force is investigating the case. The Task Force participants include the Naval Criminal Investigative Service, IRS Criminal Investigation, Defense Criminal Investigative Service, and the Department of the Army Criminal Investigation Division, among other agencies.

    Assistant U.S. Attorneys G. Karthik Srinivasan and Christopher Mangels for the Western District of Texas are prosecuting the case, with Assistant U.S. Attorney Mark Tindall for the Western District of Texas handling the forfeiture component.

    The Justice Department worked in close cooperation with investigators and prosecutors from several jurisdictions on the takedown of both the Cracked and Nulled marketplaces, including the Australian Federal Police, Europol, France’s Anti-Cybercrime Office (Office Anti-cybercriminalité) and Cyber Division of the Paris Prosecution Office, Germany’s Federal Criminal Police Office (Bundeskriminalamt) and Prosecutor General’s Office Frankfurt am Main – Cyber Crime Center (Generalstaatsanwaltschaft Frankfurt am Main – ZIT), the Spanish National Police (Policía Nacional) and Guardia Civil, the Hellenic Police (Ελληνική Αστυνομία), Italy’s Polizia di Stato and the General Inspectorate of Romanian Police (Inspectoratul General al Poliției Romane). The Justice Department’s Office of International Affairs provided significant assistance.

    A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Announces Sentencing in Shiprock Fatal Stabbing

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Shiprock man was sentenced to 23 years in federal prison today for the fatal stabbing of John Doe at a gas station in Shiprock, New Mexico in 2021.

    There is no parole in the federal system.

    According to court documents, on October 24, 2021, following a night of drinking and socializing with friends, Marc Gene Clark, 47, an enrolled member of the Navajo Nation, confronted John Doe in the parking lot of a gas station. During the confrontation and without provocation, Clark stabbed Doe with a knife, resulting in significant blood loss and ultimately leading to Doe’s death later that day.

    Surveillance video footage captured the stabbing. Clark was subsequently arrested at a nearby laundromat by officers from the Navajo Nation Police Department, and the knife used in the stabbing was found in his possession.

    Upon his release from prison, Clark will be subject to five years of supervised release.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.

    The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorneys Matthew J. McGinley and Paul J. Mysliwiec prosecuted the case.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Former California Police Officer Convicted on Eight Counts of Sexually Assaulting Women While on Duty

    Source: United States Attorneys General 11

    A federal jury in Fresno, California, convicted yesterday former Sanger, California, Police Department officer J. DeShawn Torrence, 42, of eight counts of deprivation of constitutional rights under color of law for sexually assaulting four women whom he encountered during the course of his official duties. The jury found that the offenses included kidnapping, aggravated sexual abuse, and attempted aggravated sexual abuse, and caused bodily injury.

    “Law enforcement officers are entrusted with great power to protect the public and keep them safe from harm. This officer’s crimes were an egregious breach of that trust and an appalling abuse of power, as he repeatedly preyed on the women in his community and violated their civil rights,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “We stand ready to investigate and prosecute such crimes with all the tools we have available.”

    “The FBI Sacramento Field Office is grateful to the brave victims who came forward and trusted us to investigate the allegations of sexual abuse at the hands of a police officer,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The FBI is deeply committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”

    The evidence at trial proved that Torrence sexually assaulted four women. He kidnapped a 21-year-old woman who was walking to a store to buy groceries for her young children, drove her outside of town in his police car, and sexually assaulted her at an isolated dead end. Torrence forcibly raped a second victim, a 67-year-old woman, after following her into her home during a DUI investigation. With a third victim, Torrence showed up at her door in his police uniform after midnight, entered her apartment, pinned her against the kitchen counter, and sexually assaulted her. Torrence showed up multiple times at the home of a fourth victim, a domestic violence victim, supposedly to investigate a prior domestic violence incident. During those follow up visits, Torrence forced the victim to expose sensitive parts of her body for no legitimate reason, and he sexually assaulted her. The jury also heard testimony that Torrence sexually assaulted a fifth woman while acting in his capacity as a police officer.

    Five of the counts each carry a maximum penalty of life in prison and a $250,000 fine. The three remaining counts each carry a maximum penalty of one year in prison and a fine of up to $100,000. Torrence is scheduled to be sentenced on May 7.

    Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division made the announcement.

    The FBI Sacramento Field Office investigated the case, with assistance from the Fresno County Sheriff’s Office.

    Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Karen Escobar for the Eastern District of California are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Defense News: NSF Dahlgren and NSF Indian Head to Participate in Navy-wide Security Drills Feb. 3-14

    Source: United States Navy

    “These exercises give our Security Forces the opportunity to test and build their skills to protect our installations, missions and people,” said Capt. Jonathan Townsend, commanding officer of Naval Support Activity South Potomac (NSASP).

    The drills will feature realistic, simulated threats such as active shooters, unauthorized base access and improvised explosive devices. Base residents and personnel may notice an increased presence of law enforcement and first responders during CS-SC25. All drills will be closely supervised by members of the installation Training Team, who will wear marked safety vests. Training Areas will also be marked with signage.

    Measures have been taken to minimize disruptions to normal base operations. However, the drills will result in temporary delays at gates.

    “We’re going to strike a balance where we provide the best training possible, while continuing our support for missions and residents. I ask all personnel to be patient and to be mindful of the importance of this training evolution, as it pertains to our ability to accomplish the mission of safety and security onboard the installations,” said Townsend.

    For more information, contact the NSASP Public Affairs Office at NSASPPAO@us.navy.mil or (540) 653-8153.

    MIL Security OSI –

  • MIL-OSI Security: Pasco Man Sentenced to Over 11 Years for Possessing and Distributing Child Sexual Abuse Material

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Tampa, Florida – U.S. District Judge William Jung has sentenced Anthony Joseph Fresco (68, New Port Richey) to 11 years and 3 months in federal prison for distributing and possessing child sexual abuse material (CSAM). The court also ordered Fresco to forfeit electronic devices used in the commission of the offense, pay $33,000 in restitution to the victims, and register as a sex offender. Fresco entered a guilty plea on October 18, 2024.

    According to court documents, in January 2023, Fresco communicated with an undercover FBI agent over the internet. During their conversation, Fresco discussed his sexual desire for minors and distributed two images and one video of CSAM to the undercover agent. After a search of Fresco’s electronic devices, law enforcement discovered that Fresco had distributed images and videos of CSAM in various online groups, as well as possessed hundreds of images and videos of CSAM, including images and videos depicting the sexual abuse of infants and toddlers. 

    This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: Pennsylvania Resident Who Defrauded Allied World Insurance Company Sentenced to Prison

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that JAMES KEATING, 52, of Paoli, Pennsylvania, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 20 months of imprisonment, followed by three years of supervised release, for defrauding his former employer of more than $1.4 million.

    According to court documents and statements made in court, Keating was an Assistant Vice President and surety bond claims handler at Allied World Insurance Company (“Allied World”).  He later served in the same capacity at Crum and Forster subsidiary U.S. Fire Insurance Company, where he also handled claims on Allied World surety bonds.  All surety bond claims were handled through Allied World’s offices in Farmington, Connecticut.

    Between 2017 and 2021, Keating defrauded Allied World in two ways.  First, he used a shell company, American Construction & Industrial LLC, to bill Allied World for unnecessary claims work that was not performed and took the proceeds for himself.  Second, he solicited and received kickbacks from Allied World vendors through another Keating-owned company, Surety Risk Solutions (also known as “SRS” or “SR5”), without the knowledge of his employer.  Keating also caused these vendors to use another company in which he had an undisclosed ownership interest, Kodiak Asset Recovery, for asset searches at vastly inflated prices.  Keating profited nearly $1 million through American Construction & Industrial LLC, more than $350,000 in kickbacks through Surety Risk Solutions, and nearly $125,000 through Kodiak Asset Recovery.

    Judge Bolden ordered Keating to pay restitution of $1,226,603.97, which represents the loss to Allied World of $1,446,491.95, less $219,887.98 that he previously repaid as part of a civil judgment.

    On July 30, 2024, Keating pleaded guilty to wire fraud.

    This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David E. Novick.

    MIL Security OSI –

  • MIL-OSI Security: Waterford Woman Sentenced to Two Years in Prison for Stealing From Addiction and Mental Health Services Nonprofit

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that MICHELE DEVINE, 51, of Waterford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for embezzling from the Southeastern Regional Action Council on Substance Abuse, Inc. (“SERAC”), where she was employed as its executive director.  Judge Underhill also ordered Devine to pay a $2,000 fine and perform 300 hours of community service while on supervised release.

    According to court documents and statements made in court, SERAC, headquartered in Norwich, is a 501(c)(3) organization that serves 41 towns in southeastern and northeastern Connecticut with substance abuse, problem gambling, and mental health related services.  SERAC is primarily funded through hundreds of thousands of dollars in state and federal grants from the State of Connecticut’s Department of Mental Health and Addiction Services, and the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration.

    Devine was the executive director of SERAC until July 2022.  Beginning in approximately 2008, Devine spent thousands of dollars on purchases that did not relate SERAC but instead were personal expenses for Devine and her family, including thousands of dollars spent on home appliances; travel; timeshare fees at a Connecticut resort; stays at the Canyon Ranch in the Berkshires, Massachusetts; and private school donations.

    Judge Underhill ordered Devine to pay $397,064.93 in restitution.

    Devine was arrested on August 3, 2023.  On October 21, 2024, she pleaded guilty to wire fraud.

    Devine, who is released on a $25,000 bond, is required to report to prison on March 12.

    This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General, with the assistance of the New London State’s Attorney’s Office and the State of Connecticut Office of the Attorney General.  The case was prosecuted by Assistant U.S. Attorney Ray Miller.

    MIL Security OSI –

  • MIL-OSI Security: Boynton Beach Man Sentenced to Five Years for Distributing Videos Depicting the Sexual Abuse of Children

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Jacksonville, Florida – Chief United States District Judge Marcia Morales Howard has sentenced Timothy Burch Morris (46, Boynton Beach) to five years in federal prison for distributing over the internet two videos depicting the sexual abuse of young children. Morris was also ordered to serve a five-year term of supervised release, pay $10,000 in assessments for child victims, and register as a sex offender.

    According to court documents, on November 20, 2023, an FBI agent (UC) in Jacksonville was working in an undercover capacity on a particular social media application (app) to identify individuals who were attempting to sexually exploit children using the internet. The UC joined an online public chatroom on the app posing as an adult with access to a child. App user “timkw37138,” who was later identified as Morris, posted within this public group – “Hi all. 44 very well hung male in Florida. My PM is open.” Later that day, the UC and Morris began texting using the private messaging feature of the app. Morris typed, “I just love stroking to guys [sic] daughters,” and stated that his favorite age is “prob 13-15 give or take a couple years neither side.”

    On November 22, 2023, when asked to verify if he was “legit,” Morris sent the UC a sexually explicit photo of himself. Five minutes later, Morris distributed two videos to the UC depicting minors being sexually abused. During another online conversation on November 27, 2023, Morris sent the UC another sexually explicit photo of himself taken at his residence.

    After further investigation, FBI agents arrested Morris. During a search incident to his arrest, agents seized Morris’s cellphone which contained several sexually explicit photos of Morris that he had taken while at his home that were consistent with those sent to the UC. During an interview with law enforcement, Morris admitted having the “timkw37138” user account on the app for over five years.   

    This case was investigated by the Federal Bureau of Investigation in Jacksonville and West Palm Beach, with assistance from the Boynton Beach Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

    It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. 

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office and FBI Charge Farmington Woman with Assault and Child Abuse

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Farmington woman faces charges of assault with a dangerous weapon and child abuse stemming from an incident on the Navajo Nation.

    According to court records, on or about September 2, 2024, Tenille Quintawna Peshlakai, 32, an enrolled member of the Navajo Nation, allegedly assaulted the victim with a motor vehicle, intending to cause bodily harm, while simultaneously endangering a minor who was improperly restrained in the front passenger seat.

    Peshlakai will remain in custody pending a detention hearing scheduled for January 31, 2025. If convicted, Peshlakai faces up to 10 years in prison.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations and the New Mexico State Police. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: New Orleans Man Charged with Commodity Exchange Act Violation

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that MICHAEL BRIAN DEPETRILLO, (“DEPETRILLO”), age 43, from New Orleans, was charged, on January 27, 2025, in a bill of information with violating Title 7, United States Code, Section 13(a), the Commodity Exchange Act.

    According to the bill of information, DEPETRILLO was not properly registered as a Commodity Pool Operator (“CPO”) or an Associated Person (“AP”) of a CPO with the United States Commodity Futures Trading Commission (“CFTC”).  DEPETRILLO, through various companies including, Meteor, LLC; NOLA FX Capital Management, LLC; ELC Enterprise Solutions, LLC; and Argosapolis, LLC, acted as a CPO and AP of a CPO and embezzled client funds in violation of federal law.    DEPETRILLO, while acting as an AP of unregistered CPOs, represented to victim investors that their funds would be pooled and invested in the NOLA FX FUND, that would be used to trade foreign currency pairs on a leveraged, margined, or financed basis (“retail forex”).

    DEPETRILLO told investors that pooling their funds would be beneficial to them.  DEPETRILLO further represented to certain investors, that either METEOR or NOLA FX CAPITAL managed the NOLA FX FUND.  In at least one representation, however, DEPETRILLO identified “NOLA FX Capital,” not the NOLA FX FUND, as the pooled investment vehicle.   DEPETRILLO lured investors by claiming he was investing their funds by trading  in the foreign currency exchange, gold futures options, stocks, and cryptocurrency.  Instead of trading as promised, DEPETRILLO misappropriated pool funds.  DEPETRILLO then used these misappropriated pool funds to: (1) make lulling payments to existing pool participants; (2) pay his personal expenses, such as rent, private air travel, and online gambling; and (3) trade  in his personal trading accounts. To conceal DEPETRILLO’s misappropriation, he created and issued fictitious account statements in the names NOLA FX FUND and NOLA FX CAPITAL.  The fictitious account statements purported to show that: (1) DEPETRILLO had traded forex using pool participant funds, and (2) the NOLA FX FUND and NOLA FX CAPITAL had achieved significant trading returns for pool participants because of his profitable forex trading.  In fact, DEPETRILLO never deposited pool participant funds into trading accounts belonging to NOLA FX FUND or NOLA FX CAPITAL, and he never achieved the trading returns represented on the false account statements.  DEPETRILLO also did not set up the forex pool in the manner required by the regulations, did not receive pool participant funds in the name of the forex pool, and commingled pool participant funds with his own funds.  DEPETRILLO took in approximately $9.2 million in investor funds from approximately 60 victim investors during a seven-year period.

    If convicted, DEPETRILLO faces up to ten (10) years imprisonment, up to three (3) years of supervised release, up to a $1,000,000.00 fine, plus the amount of any proceeds, and a mandatory $100 special assessment fee.

    U.S. Attorney Duane A. Evans stated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

    The case is being investigated by the Federal Bureau of Investigation (“FBI”).  The FBI is seeking information that may help identify potential victims of DEPETRILLO’s fraudulent scheme.  FBI encourages the public to report any information to http://fbi.gov/depetrillovictims.

    The prosecution of this case is being handled by Assistant United States Attorneys Kathryn McHugh of the Financial Crimes Unit and Brian M. Klebba, Chief of the Financial Crimes Unit.

    MIL Security OSI –

  • MIL-OSI Russia: Fraudulent attack on the State University of Management: do not disclose your password for “Gosuslugi”!

    Translartion. Region: Russians Fedetion –

    Source: State University of Management – Official website of the State –

    In recent days, information attacks by fraudsters have resumed, with their victims most often being students from Russian universities.

    Students of the State University of Management are receiving calls allegedly from the GUU Testing Center demanding that they provide a password for the “Gosuslugi” portal. In fact, the Testing Center does nothing of the sort now. Be careful! These are scammers! Do not give your password to anyone under any circumstances!

    Recently, the following blackmail scheme has also been used: on behalf of university employees or security officials, information is anonymously conveyed to a potential victim that money for the Ukrainian Armed Forces was transferred from his card (or corresponding notes were made in his personal file). In order to supposedly “rehabilitate” himself, cybercriminals offer to complete tasks for the “curator”. Do not do anything under any circumstances!

    Fraudsters may have a set of personal data. By substituting numbers and forging voices, they gain the victim’s trust and put pressure on them on behalf of the rector, a representative of the FSB or the Ministry of Internal Affairs. Be extremely vigilant!

    What to do if you receive a call or message that you are not sure is authentic or that scares you, makes you wary, or calls for immediate action in your own interests: – end the conversation immediately, do not correspond with unfamiliar users; – inform your immediate supervisor or teacher about what happened; – check the identity of the contact – if the caller or writer from an unknown number introduces himself as someone you know, contact him at the current number.

    Remember that scammers are in no hurry and can “accompany” you for a long time, contacting from different numbers on behalf of different people. Do not take any urgent actions, take a break to understand the situation and not become a victim. For example, briefly describe the situation in a search engine and add the word “scammers”. Most likely, a similar scheme will already be described on the Internet, and you will see that they are trying to deceive you.

    Vigilance, caution, calmness and critical thinking will help you in any difficult situation, do not give in to panic and fear!

    Subscribe to the TG channel “Our GUU” Date of publication: 01/30/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI United Nations: UNECE Expert Meeting on Statistical Data Editing 2024

    Source: United Nations Economic Commission for Europe

    The focus of the meeting will be on cutting edge ideas, approaches, and tools in the area of statistical data editing. In addition to the traditional presentations, the agenda of the meeting anticipates interactive discussions related to particular topics within this field.

    The target audience of the expert meeting includes senior and middle-level methodologists, statisticians and researchers, working on editing and imputation of statistical data derived from surveys, censuses, administrative and external sources.

    Document Title Documents Presentations
    Information Notice 1  PDF  
    Information Notice 2 (logistical information) PDF  
    Preliminary timetable  PDF  

    Session 1: E&I quality

    		      
    Keynote Presentation: Current work on automatic multisource editing at Statistics Netherlands. Sander Scholtus (Statistics Netherlands) Abstract   Paper Presentation
    Leveraging AI for statistical editing: the case of the BIS AI Metadata Editor – Olivier Sirello (Bank for International Settlements) Abstract Paper Presentation
    Lightning Talk: Using hidden Markov and macro integration models for combining data from different sources – Sander Scholtus (Statistics Netherlands) Abstract – Presentation

    Session 2: E&I process

    		      
    National guidelines on data editing; the foundation for building a solution for the future – Aslaug Hurlen Foss (Statistics Norway) Abstract Paper Presentation
    Moving towards the standardized process of automatic statistical data editing using machine learning techniques – Ieva Burakauskaitė (State Data Agency, Statistics Lithuania) Abstract Paper Presentation
    The editing and imputation process of the 2021 household and nuclei types reconstruction in Italy – Rosa Maria Lipsi (Istat, Italy) Abstract Paper Presentation
    Keynote Presentation: Building the new Banff: an open-source data editing system based on GSDEM concepts – Darren Gray (Statistics Canada) Abstract – Presentation

    Session 3: Imputation

    		      
    Full conditional distributions for handling restrictions in the context of automated statistical data editing – Christian Aßmann (Leibniz Institute for Educational Trajectories) Abstract Paper Presentation
    Application of the MissForest algorithm for imputing income variables in the Survey on Income and Living Conditions – Blandine Bianchi (Swiss Federal Statistical Office) Abstract Paper Presentation
    Assessment of Manual vs Automated Survey Editing and Imputation – Sean Rhodes (U.S. Department of Agriculture National Agricultural Statistics Service) Abstract Paper Presentation
    Enhancing Official Statistics through Artificial Intelligence: A Comparative Study of Imputation Techniques – Simona Cafieri (Istat, Italy) Abstract Paper Presentation
    Lightning Talk: Random forest imputation of nutritional information for statistics on food consumption in Norway – Magne Furuholmen Myhren (Statistics Norway) Abstract – Presentation

    Session 4: Selective editing and outlier detection

    		      
    Detecting Extreme Numerical Outliers in Trade Data: A Novel Method for Highly Asymmetric Distributions – Andrea Cerasa (European Commission, Joint Research Centre) Abstract Paper Presentation
    Selective editing for the production of new Services Producer Price Indices (SPPIs) from indirect data sources – Simona Rosati (Istat, Italy) Abstract Paper Presentation
    Outlier Identification and Adjustment for Time Series – Markus Fröhlich (Statistics Austria) Abstract Paper Presentation

    Session 5: International community building

    		      
    Organisational Aspects of Implementing ML Based Data Editing in Statistical Production – Steffen Moritz (Destatis) Abstract Paper Presentation
    Presentation on the various themes of AIML4OS: project overview – Alexander Kowarik (Statistics Austria) – – Presentation
    The European One-Stop-Shop for Artificial Intelligence and Machine Learning for Official Statistics (AIML4OS): WP8 Use Case focused on data editing – Steffen Moritz (Destatis, Germany) Abstract Paper Presentation
    The European One-Stop-Shop for Artificial Intelligence and Machine Learning for Official Statistics (AIML4OS): WP9 Use Case focused on imputation – David Salgado (Statistics Spain) Abstract Paper Presentation

    MIL OSI United Nations News –

  • MIL-OSI Russia: Dmitry Chernyshenko: In the Year of the Defender of the Fatherland, the International Sports Games of the Holy Blessed Prince Alexander Nevsky will be held in St. Petersburg

    Translartion. Region: Russians Fedetion –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    The first meeting of the organizing committee for the preparation and holding of the 2025 Saint Blessed Prince Alexander Nevsky International Sports Games was held under the chairmanship of Deputy Prime Minister Dmitry Chernyshenko.

    “Last year, almost 2,000 people from 68 regions took part in the Games in 6 sports. The team from St. Petersburg became the winner and holder of the Patriarch of Moscow and All Rus’ Challenge Cup. Prime Minister Mikhail Mishustin supported the initiative of Patriarch of Moscow and All Rus’ Kirill to give the competitions international status from 2025. The invitation campaign for foreign teams will start in March of this year. This time, the competitions will be held in St. Petersburg in the Year of the Defender of the Fatherland and on the days of remembrance of the Holy Blessed Prince Alexander Nevsky, which gives them special meaning,” Dmitry Chernyshenko emphasized.

    According to the Deputy Prime Minister, strengthening the moral and ethical foundations of modern sports is becoming especially relevant today. The principles of raising a harmoniously developed person form the basis of sports, the state’s youth policy, and the patriotic education of the younger generation. Promoting the cultural and historical heritage and our traditional values will strengthen Russia’s sovereignty, ensure the unity of our country, and develop human potential. All of this is among the priorities of the organizing committee.

    “The International Sports Games of the Holy Blessed Prince Alexander Nevsky are included in the unified calendar plan of the Ministry of Sports of Russia for 2025 and, I am convinced, will not only help attract young people to sports, but also strengthen spiritual and moral values. In addition, in 2025, the Games will be included in the list of significant international events and will unite athletes from Russia and friendly countries,” said Minister of Sports Mikhail Degtyarev.

    Vice-Governor of St. Petersburg Boris Piotrovsky thanked for choosing St. Petersburg as the venue for the Games, noting the city’s extensive experience in organizing international events. He said that the opening and closing ceremonies of the Games will take place in the Yubileiny sports complex, among the venues are ready-made competition facilities.

    Metropolitan Mitrofan of Murmansk and Monchegorsk, Chairman of the Patriarchal Commission on Physical Culture and Sports, also spoke about the progress of preparations and outlined recommendations for organizing the work and attracting participants from regions of Russia and other countries.

    First Deputy Chairperson of the State Duma Committee on International Affairs Svetlana Zhurova emphasized the importance of giving competitions international status and, using her personal example, spoke about the role of athletes’ participation in such events for their professional development.

    During the meeting, Dmitry Chernyshenko gave a number of instructions concerning organizational, information support and security.

    The meeting of the organizing committee was also attended by Ambassador-at-Large, Special Representative of the Minister of Foreign Affairs for International Sports Cooperation Mikhail Khorev, representatives of the Ministry of Education and Science, the Ministry of Health, Rospotrebnadzor, the FSB, Rosmolodezh, and Rossotrudnichestvo.

    The first All-Russian Sports Games of the Holy Blessed Prince Alexander Nevsky took place in 2023 in Kemerovo, the second in 2024 in Nizhny Novgorod.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News –

  • MIL-OSI Europe: Trump 2.0: the rise of an “anti-elite” elite in US politics

    Source: Universities – Science Po in English

    US president Donald Trump is surrounded by a new cohort of politicians and officials. While one of his campaign promises was to overthrow the “corrupt elites” he accuses of flooding the American political arena, his second term in office has elevated elites chosen, above all, for their political loyalty to him. Does his second term open the door to elites who can operate without concern for justice and truth?

    An article by William Genieys, CNRS Research Director at the Centre for European Studies and Comparative Politics (CEE) at Sciences Po, and Mohammad-Saïd Darviche, Senior Lecturer at the University of Montpellier, originally published by our partner The Conversation.

    The media’s focus on Trump’s comments on making Canada the 51st US state and annexing Greenland and billionaire Elon Musk’s support for some far-right parties in Europe has obscured the ambitious programme to transform the federal government that the new political elite intends to implement.

    In the wake of Trump’s inauguration on January 20, the Republican elites most loyal to the MAGA (“Make America Great Again”) leader, who staunchly oppose Democratic elites and their policies, are operating amid their party’s control over the executive and legislative branches (at least until the midterm elections in 2026), a conservative-dominated Supreme Court that includes three Trump-appointed justices, and a federal judiciary that shifted right during his first term.

    However, the political project of the Trumpist camp consists less of challenging elitism in general than attacking a specific elite: one particular to liberal democracies.

    Castigating democratic elitism

    Typical anti-elite political propaganda, along the lines of “I speak for you, the people, against the elites who betray and deceive you,” claims that a populist leader would be able to exercise power for and on behalf of the people without the mediation of an elite disconnected from their needs.

    Political theorist John Higley sees behind this form of anti-elite discourse an association between so-called “forceful leaders” and “leonine elites” (who take advantage of the former and their political success): a phenomenon that threatens the future of Western democracies.

    Since the Second World War, there has been a consensus in US politics on the idea of democratic elitism. According to this principle, elitist mediation is inevitable in mass democracies and must be based on two criteria: respect for the results of elections (which must be free and competitive); and the relative autonomy of political institutions.

    The challenge to this consensus has been growing since the 1990s with the increased polarization of American politics. It gained new momentum during and after the 2016 presidential campaign, which was marked by anti-elite rhetoric from both Republicans and Democrats (such as senators Bernie Sanders and Elizabeth Warren). At the heart of some of their diatribes was an aversion to “the Establishment” on the east and west coasts of the United States, where many prestigious financial, political and academic institutions are based, and the conspiracy notion of the “deep state”.

    The re-election of Trump, who has never admitted defeat in the 2020 presidential vote, growing political hostility and the direct involvement of tech tycoons in political communication –especially on the Republican side– further reinforce the denial of democratic elitism.

    Trump’s populism from above: a revolt of the elites

    The idea that democracy could be betrayed by “the revolt of the elites”, put forward by the US historian Christopher Lasch (1932-1994), is not new. For the anthropologist Arjun Appadurai, it is a particular feature of contemporary populism, which comes “from above.” Indeed, if the 20th century was the era of the “revolt of the masses”, the 21st century, according to Appadurai, “is characterized by the ‘revolt of the elites’.” This would explain the rise of populist autocracies (such as those currently led by Viktor Orban in Hungary, Recep Tayyip Erdogan in Turkey and Narendra Modi in India, and formerly led by Jair Bolsonaro in Brazil), but also the election successes of populist leaders in consolidated democracies (including those of Trump in the US, Giorgia Meloni in Italy, and Geert Wilders in the Netherlands, for example).

    As Appadurai explains, the success of Trumpian populism, which represents a revolt by ordinary Americans against the elites, casts a veil over the fact that, following Trump’s victory in November, “it is a new elite that has ousted from power the despised Democratic elite that had occupied the White House for nearly four years.”

    The aim of this “alter elite” is to replace the “regular” Democrat elites, but also the moderate Republicans, by deeply discrediting their values (such as liberalism and so-called “wokeism”) and their supposedly corrupt political practices. As a result, this populism “from above” carried out by the President’s supporters constitutes an alternative elite configuration, the effects of which on American democratic life could be more significant than those observed during Trump’s first term.

    Beyond the idea of a ‘Muskoligarchy’

    The idea that we are witnessing the formation of a “Muskoligarchy” –in other words, an economic elite (including tech barons such as Jeff Bezos, Mark Zuckerberg and Marc Andreessen) rallying around the figurehead of Elon Musk, whom Trump asked to lead what the president has called a “Department of Government Efficiency” (DOGE) –is seductive. It perfectly combines the vision of an alliance between a “conspiratorial, coherent, conscious” ruling class and an oligarchy made up of the “ultra-rich”. For the Financial Times columnist Martin Wolf, it is even a sign of the development of “pluto-populism”. (It is also worth noting that former president Joe Biden, in his farewell speech, referred to “an oligarchy… of extreme wealth” and “the potential rise of a tech-industrial complex.”)

    However, some observers are cautious about the advent of a “Muskoligarchy.” They point to the sociological eclecticism of the new Trumpian elite, whose facade of unity is held together above all by a political loyalty, for the time being unfailing, to the MAGA leader. The fact remains, however, that the various factions of this new “anti-elite” elite are converging around a common agenda: to rid the federal government of the supposed stranglehold of Democratic “insiders.”

    An ‘anti-elite’ elite against the ‘deep state’

    In his presidential inauguration speech in 1981, Ronald Reagan said: “Government is not the solution to our problem; government is the problem.” The anti-elitism of the Trump elite is inspired by this diagnosis, and defends a simple political programme: rid democracy of the “deep state.”

    Although the idea that the US is “beleaguered” by an “unelected and unaccountable elite” and “insiders” who subvert the general interest has been shown to be unfounded, it is nonetheless predominant in the new Trump Administration.

    This conspiracy theory has been taken to the extreme by Kash Patel, the candidate being considered to head the FBI. In his book, Government Gangsters, a veritable manifesto against the federal administration, the former lawyer writes about the need to resort to “purges” in order to bring elite Democrats to justice. He lists around 60 people, including Biden, ex-secretary of state Hillary Clinton and ex-vice president Kamala Harris.

    The appointment of Russell Vought as head of the Office of Management and Budget at the White House, a person who is known for having sought to obstruct the transition to the Biden Administration in 2021, also highlights the hard turn that the Trump administration is likely to take.

    Reshaping the state around political loyalty

    To “deconstruct the administrative state”, the “anti-elite” elites are relying on Project 2025, a 900-plus page programme report that the conservative think-tank The Heritage Foundation, which published it, says was produced by “more than 400 scholars and policy experts.” According to former Project 2025 director Paul Dans, “never before has the entire movement… banded together to construct a comprehensive plan” for this purpose. On this basis, the “anti-elite” elite want to impose loyalty to Project 2025 on federal civil servants.

    But this idea is not new. At the end of his first term, Trump issued an executive order facilitating the dismissal of statutory federal civil servants occupying “policy-related positions” and considered to be “disloyal”. The decree was rescinded by president Biden, but Trump on his first day back in office signed an executive order that seeks to void Biden’s rescindment. As President, Trump is also able to allocate senior positions within the federal administration to his supporters.

    The “anti-elite” elite not only want to reduce the size of the state, as was the case under Reagan’s “neoliberalism”, but to deconstruct and rebuild it in their own image. Their real aim is a more lasting victory: the transformation of democratic elitism into populist elitism.

    MIL OSI Europe News –

  • MIL-OSI Global: Biden targeted the online right-wing terrorism threat − now it’s up to Trump

    Source: The Conversation – USA – By Jason M. Blazakis, Professor of Practice and Director of Center on Terrorism, Extremism and Counterterrorism, Middlebury

    U.S. officials say the right-wing terrorism threat is significant. Farion_O/iStock via Getty Images

    In the waning days of the Biden administration, the U.S. Department of State took its first major step against terrorism groups primarily focused on what is called “accelerationism” – the effort to inspire independent followers to engage in violence in ways that broadly destabilize society. The U.S. government has long targeted actively violent terrorist organizations such as al-Qaida – the group behind the 9/11 attacks – and the Islamic State group, which carried out beheadings of innocent civilians in Iraq and Syria.

    Then-FBI Director Christopher Wray repeatedly warned Congress about the threat to national security from far-right accelerationist groups. In a move to respond to those warnings, the Biden administration labeled the online-only “Terrorgram Collective” and three of its leaders as specially designated global terrorists, which means their financial assets are frozen and anyone who tries to support them can be arrested.

    The Terrorgram Collective aims to destroy the current global economic and political structure and spark a war between white people and people of other racial and ethnic backgrounds. To accomplish that, it maintains an online forum on the Telegram social media platform. The forum’s posts, from leaders and followers alike, are characterized by people spouting violent rhetoric and incitement to violence against minorities, Jewish people and governments.

    Widespread radicalization

    The State Department’s action also specifically targets two U.S. citizens: Dallas Humber of California and Matthew Allison of Idaho, who allegedly played leading roles in the Terrorgram Collective and are facing federal charges for soliciting the murder of government officials.

    As my colleagues at Middlebury’s Center on Terrorism, Extremism and Counterterrorism wrote in a 2022 report, Terrorgram’s danger is primarily in its ability to spread far-right propaganda to radicalize almost anyone active on Telegram or elsewhere online.

    The State Department has not attributed specific attacks to the Terrorgram Collective but rather warns of its influence and potential to inspire attacks by people who encounter the ideas it spreads. For instance, Terrorgram material was reportedly used as the basis for writings by a 17-year-old high school student who killed two fellow students and injured a third in a Jan. 22, 2025, school shooting in Nashville, Tennessee.

    The Telegram app icon on a smartphone screen.
    Nikolas Kokovlis/NurPhoto via Getty Images

    Little targeting of fascist groups

    The Terrorgram action came seven months after the Biden administration’s labeling of a Scandinavia-based far-right extremist group, the Nordic Resistance Movement, as terrorists as well.

    These were two of just three times fascist extremist groups anywhere in the world were labeled terrorists by the U.S. government. Early in his first term, President Donald Trump’s State Department did label one far-right group as a specially designated global terrorist organization: the Russian Imperial Movement, based in Russia.

    But as the former head of the State Department office that sanctions terrorists, I know that neither Trump nor Biden marshaled the full force of the nation’s anti-terrorism efforts against these groups.

    There’s a hierarchy in the U.S. government’s labels for these organizations. That hierarchy reflects the degree of danger an organization poses as well as the strength of the U.S. response to it.

    The highest-level designation and the most significant sanctions the U.S. government can impose come from placing a group on the State Department’s list of foreign terrorist organizations. That list includes groups such as al-Qaida and the Islamic State group – also called ISIS or ISIL – which are subject to asset freezes and extended prison sentences and are barred from entering the U.S.

    The second-tier list covers what are called specially designated global terrorists, which carries similar, but less severe, restrictions.

    It’s easier to prove someone did something to support a group on the foreign terrorist organization list than to prove support for a group on the specially designated list. And jail time for foreign terrorist organization backers is typically longer.

    All three right-wing groups are on the specially designated list, though the Trump administration could upgrade them to the top-level list, as Trump has asked the State Department to do with the Houthi militants in Yemen.

    Jason M. Blazakis does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Biden targeted the online right-wing terrorism threat − now it’s up to Trump – https://theconversation.com/biden-targeted-the-online-right-wing-terrorism-threat-now-its-up-to-trump-247977

    MIL OSI – Global Reports –

  • MIL-OSI: Red River Bancshares, Inc. Reports Fourth Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ALEXANDRIA, La., Jan. 30, 2025 (GLOBE NEWSWIRE) — Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its unaudited financial results for the fourth quarter of 2024.

    Net income for the fourth quarter of 2024 was $9.3 million, or $1.37 per diluted common share (“EPS”), an increase of $552,000, or 6.3%, compared to $8.8 million, or $1.27 EPS, for the third quarter of 2024, and an increase of $1.0 million, or 12.2%, compared to $8.3 million, or $1.16 EPS, for the fourth quarter of 2023. For the fourth quarter of 2024, the quarterly return on assets was 1.18%, and the quarterly return on equity was 11.46%.

    Net income for the year ended December 31, 2024, was $34.2 million, or $4.95 EPS, a decrease of $644,000, or 1.8%, compared to $34.9 million, or $4.86 EPS, for the year ended December 31, 2023. For the year ended December 31, 2024, the return on assets was 1.11%, and the return on equity was 11.02%.

    Fourth Quarter 2024 Performance and Operational Highlights

    In the fourth quarter of 2024, the Company had an improved net interest margin, which resulted in higher net interest income and earnings, along with slightly higher loans and deposits. A significant stock repurchase transaction was completed, and a stock repurchase program for 2025 was renewed. During the fourth quarter, the target range of the federal funds rate was reduced by 50 basis points (“bps”).

    • Net income for the fourth quarter of 2024 was $9.3 million compared to $8.8 million for the prior quarter. Net income for the fourth quarter benefited from an improved net interest margin fully tax equivalent (“FTE”) and higher net interest income.
    • Net interest income and net interest margin FTE increased for the fourth quarter of 2024 compared to the prior quarter. Net interest income for the fourth quarter of 2024 was $23.7 million compared to $22.5 million for the prior quarter. Net interest margin FTE for the fourth quarter of 2024 was 3.09% compared to 2.98% for the prior quarter. These improvements were due to higher loan balances, combined with higher securities yields and lower deposit rates.
    • As of December 31, 2024, assets were $3.15 billion, which was $47.8 million, or 1.5%, higher than September 30, 2024. The increase was mainly due to a $58.0 million increase in deposits.
    • Deposits totaled $2.81 billion as of December 31, 2024, an increase of $58.0 million, or 2.1%, compared to $2.75 billion as of September 30, 2024. This increase was mainly due to the seasonal inflow of funds from public entity customers.
    • As of December 31, 2024, loans held for investment (“HFI”) were $2.08 billion, slightly higher than $2.06 billion as of September 30, 2024. In the third and fourth quarters of 2024, we closed on a high level of loan commitments, which we expect to fund over time.
    • As of December 31, 2024, total securities were $684.9 million, which was $12.8 million, or 1.8%, lower than September 30, 2024. Securities decreased mainly due to having a larger net unrealized loss on securities available-for-sale (“AFS”). New securities purchased were offset by securities maturities and principal repayments.
    • As of December 31, 2024, liquid assets, which are cash and cash equivalents, were $269.0 million, and the liquid assets to assets ratio was 8.54%. We do not have any borrowings, brokered deposits, or internet-sourced deposits.
    • In the fourth quarter of 2024, the provision for credit losses totaled $300,000. This included $200,000 for loans and $100,000 for unfunded loan commitments.
    • As of December 31, 2024, nonperforming assets (“NPA(s)”) were $3.3 million, or 0.10% of assets, and the allowance for credit losses (“ACL”) was $21.7 million, or 1.05% of loans HFI.
    • We paid a quarterly cash dividend of $0.09 per common share in the fourth quarter of 2024.
    • The 2024 stock repurchase program authorized us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2024 through December 31, 2024. Under this plan, in the fourth quarter of 2024, we repurchased 632 shares on the open market at an aggregate cost of $33,000. The 2024 stock repurchase program expired on December 31, 2024, with $1.1 million of remaining availability. On December 19, 2024, our Board of Directors approved the renewal of our stock repurchase program for 2025. The 2025 stock repurchase program authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025.
    • On November 5, 2024, we entered into a privately negotiated stock repurchase agreement for the repurchase of 50,000 shares of our common stock at a purchase price of $2.5 million. This repurchase was supplemental to our 2024 stock repurchase program.
    • In 2024, we repurchased 327,085 shares of our common stock. For the year ended December 31, 2024, these repurchases benefited earnings per share by $0.14.
    • As of December 31, 2024, capital levels were strong, with a stockholders’ equity to assets ratio of 10.15%, a leverage ratio of 11.86%, and a total risk-based capital ratio of 18.28%.
    • In the fourth quarter of 2024, we continued implementing our organic expansion plan. We purchased property in Lafayette, Louisiana and plan to build a new banking center at that location, which would be our second banking center in the Acadiana market.
    • The American Banker publication included Red River Bank in its “2024 Best Banks To Work For” ranking.

    Blake Chatelain, President and Chief Executive Officer, stated, “We are pleased to finish out 2024 with a strong fourth quarter, which included steady net interest margin improvement, higher net income, solid loan activity, and good liquidity.

    “In the fourth quarter, the Federal Reserve lowered short-term interest rates; however, longer term rates remained fairly consistent. Due to diligent balance sheet management, our net interest margin FTE increased by 11 bps and net interest income increased by 5.5% in the fourth quarter. New loan activity was very good in the fourth quarter; however, the loan portfolio was impacted by higher than normal paydowns on loans. For the second quarter in a row, we closed on a significant amount of construction loan commitments, which we expect to fund over time. Our balance sheet is well positioned for the forecasted interest rate environment and a normal shaped yield curve. This should enable us to continue improving the net interest margin slightly in the first half of 2025.

    “In the fourth quarter of 2024, we completed a third, significant private stock repurchase transaction. In 2024, we repurchased 4.6% of outstanding shares, which positively impacted earnings per share, while also maintaining strong capital levels and ratios.

    “The fourth quarter of 2024 wrapped up a good year for our Company and our communities. Our Company is well positioned for the future, with robust capital and liquidity levels combined with a great team of community bankers. We look forward to 2025 as we continue to grow and build value for our shareholders.”

    Net Interest Income and Net Interest Margin FTE

    Net interest income and net interest margin FTE increased in the fourth quarter of 2024 compared to the prior quarter. These measures were both impacted by improved yields on securities, as well as lower deposit rates. After keeping the federal funds rate consistent since the third quarter of 2023, the Federal Open Market Committee (“FOMC”) decreased the federal funds rate by 50 bps in September of 2024, and by an additional 50 bps during the fourth quarter of 2024.

    Net interest income for the fourth quarter of 2024 was $23.7 million, which was $1.2 million, or 5.5%, higher than the third quarter of 2024, due to a $729,000 increase in interest and dividend income, combined with a $501,000 decrease in interest expense. The increase in interest and dividend income was due to higher interest income on loans and securities. Loan income increased $376,000 primarily due to higher average loan balances during the fourth quarter. Securities income increased $289,000 due to reinvesting lower yielding securities cash flows into higher yielding securities. The decrease in interest expense was primarily due to lower rates on interest-bearing transaction deposits and time deposits.

    The net interest margin FTE increased 11 bps to 3.09% for the fourth quarter of 2024, compared to 2.98% for the prior quarter. This increase was due to improved yields on securities, combined with lower deposit costs. The yield on securities increased 13 bps due to reinvesting lower yielding securities cash flows into higher yielding securities. The yield on loans increased 2 bps due to higher rates on new and renewed loans compared to the existing portfolio yield. The average rate on new and renewed loans was 7.25% for the fourth quarter of 2024 and 7.89% for the prior quarter. The cost of deposits decreased 10 bps to 1.71% for the fourth quarter of 2024, compared to 1.81% for the previous quarter, due to our lowering of selected deposit rates. As a result of this change, there was a 17 bp decrease in the rate on interest-bearing transaction deposits and a 9 bp decrease on time deposits during the fourth quarter.

    The FOMC lowered the federal funds rate by 50 bps in the fourth quarter of 2024, reducing the target federal funds range to 4.25%-4.50%. The market’s expectation is that the FOMC may lower the target range of the federal funds rate by at least 25 bps in 2025. In 2025, we anticipate receiving approximately $101.0 million in securities cash flows with an average yield of 3.01%, and we project approximately $194.0 million of fixed rate loans will mature with an average yield of 6.04%. We expect to redeploy these balances into higher yielding assets. Additionally, in 2025, we expect $541.9 million of time deposits to mature with an average rate of 4.10%, which we anticipate repricing into lower cost deposits. As of December 31, 2024, floating rate loans were 16.0% of loans HFI, and floating rate transaction deposits were 8.1% of interest-bearing transaction deposits. Depending on balance sheet activity and the movement in interest rates, we expect the net interest income and net interest margin FTE to improve slightly during the first half of 2025.

    Provision for Credit Losses

    The provision for credit losses for the third and fourth quarters of 2024 was $300,000, which included $200,000 for loans and $100,000 for unfunded loan commitments for each quarter. The provision in the third and fourth quarters was due to potential economic challenges resulting from the recent inflationary environment, changing monetary policy, and loan growth. In the second half of 2024, we had an increase in unfunded loan commitments. We will continue to evaluate future provision needs in relation to current economic situations, loan growth, trends in asset quality, forecasted information, and other conditions influencing loss expectations.

    Noninterest Income

    Noninterest income totaled $5.0 million for the fourth quarter of 2024, a decrease of $424,000, or 7.8%, compared to $5.4 million for the previous quarter. The decrease was mainly due to a loss on equity securities and lower loan and deposit income.

    Equity securities are an investment in a Community Reinvestment Act (“CRA”) mutual fund consisting primarily of bonds. The gain or loss on equity securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to the fluctuations in market rates between quarters, equity securities had a loss of $91,000 in the fourth quarter of 2024, compared to a gain of $107,000 for the previous quarter.

    Loan and deposit income totaled $463,000 for the fourth quarter of 2024, a decrease of $125,000, or 21.3%, compared to $588,000 for the previous quarter. The third quarter of 2024 benefited from the receipt of a $151,000 nonrecurring loan related fee.

    Operating Expenses

    Operating expenses totaled $16.8 million for the fourth quarter of 2024, which was fairly consistent with the previous quarter. Higher occupancy and equipment expenses were offset by lower other taxes.

    Occupancy and equipment expenses totaled $1.7 million for the fourth quarter of 2024, which was $55,000, or 3.3% higher than the previous quarter. In the fourth quarter of 2024, there was $35,000 of nonrecurring expenses related to a new administrative office in the New Orleans market.

    Other taxes totaled $547,000 for the fourth quarter of 2024, a decrease of $75,000, or 12.1%, compared to $622,000 for the previous quarter. In the fourth quarter of 2024, the State of Louisiana bank stock tax expense was lower due to a $68,000 adjustment with receipt of the year-end bank stock tax invoices.

    Asset Overview

    As of December 31, 2024, assets were $3.15 billion, compared to assets of $3.10 billion as of September 30, 2024, an increase of $47.8 million, or 1.5%. In the fourth quarter, assets were mainly impacted by a $58.0 million, or 2.1%, increase in deposits. In the fourth quarter of 2024, liquid assets increased $36.3 million, or 15.6%, to $269.0 million and averaged $256.2 million for the fourth quarter. As of December 31, 2024, we had sufficient liquid assets available and $1.62 billion accessible from other liquidity sources. The liquid assets to assets ratio was 8.54% as of December 31, 2024. Total securities decreased $12.8 million, or 1.8%, to $684.9 million in the fourth quarter and were 21.7% of assets as of December 31, 2024. During the fourth quarter, loans HFI increased $19.0 million, or 0.9%, to $2.08 billion. The loans HFI to deposits ratio was 73.97% as of December 31, 2024, compared to 74.84% as of September 30, 2024.

    Securities

    Total securities as of December 31, 2024, were $684.9 million, a decrease of $12.8 million, or 1.8%, from September 30, 2024. Securities decreased mainly due to having a larger net unrealized loss on securities AFS. New securities purchased were offset by securities maturities and principal repayments.

    The estimated fair value of securities AFS totaled $550.1 million, net of $63.2 million of unrealized loss, as of December 31, 2024, compared to $560.6 million, net of $49.5 million of unrealized loss, as of September 30, 2024. As of December 31, 2024, the amortized cost of securities held-to-maturity (“HTM”) totaled $131.8 million compared to $134.1 million as of September 30, 2024. As of December 31, 2024, securities HTM had an unrealized loss of $22.8 million compared to $17.3 million as of September 30, 2024.

    As of December 31, 2024, equity securities, which is an investment in a CRA mutual fund consisting primarily of bonds, totaled $2.9 million compared to $3.0 million as of September 30, 2024.

    Loans

    Loans HFI as of December 31, 2024, were $2.08 billion, slightly higher than $2.06 billion as of September 30, 2024. In the third and fourth quarters of 2024, we closed on a high level of loan commitments, which, depending on customer activity, we expect to fund over time. Unfunded loan commitments that originated in the fourth quarter of 2024 totaled $106.2 million.

    Loans HFI by Category
      December 31, 2024   September 30, 2024   Change from
    September 30, 2024 to
    December 31, 2024
    (dollars in thousands) Amount   Percent   Amount   Percent   $ Change   % Change
    Real estate:                      
    Commercial real estate $ 884,641   42.6 %   $ 875,590   42.6 %   $ 9,051     1.0 %
    One-to-four family residential   614,551   29.6 %     616,467   30.0 %     (1,916 )   (0.3 %)
    Construction and development   155,229   7.5 %     141,525   6.9 %     13,704     9.7 %
    Commercial and industrial   327,086   15.8 %     327,069   15.9 %     17     — %
    Tax-exempt   64,930   3.1 %     66,436   3.2 %     (1,506 )   (2.3 %)
    Consumer   28,576   1.4 %     28,961   1.4 %     (385 )   (1.3 %)
    Total loans HFI $ 2,075,013   100.0 %   $ 2,056,048   100.0 %   $ 18,965     0.9 %
                                         

    Commercial real estate (“CRE”) loans are collateralized by owner occupied and non-owner occupied properties mainly in Louisiana. Non-owner occupied office loans were $56.4 million, or 2.7% of loans HFI, as of December 31, 2024, and are primarily centered in low-rise suburban areas. The average CRE loan size was $953,000 as of December 31, 2024.

    Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of December 31, 2024, total health care loans were 8.1% of loans HFI. Within the health care sector, loans to nursing and residential care facilities were 4.4% of loans HFI, and loans to physician and dental practices were 3.4% of loans HFI. The average health care loan size was $372,000 as of December 31, 2024.

    Asset Quality and Allowance for Credit Losses

    NPAs totaled $3.3 million as of December 31, 2024, an increase of $166,000, or 5.3%, from September 30, 2024, primarily due to an increase in past due loans, partially offset by payoffs and charge-offs of nonaccrual loans. The ratio of NPAs to assets was 0.10% as of December 31, 2024 and September 30, 2024.

    As of December 31, 2024, the ACL was $21.7 million. The ratio of ACL to loans HFI was 1.05% as of December 31, 2024 and 1.06% as of September 30, 2024. The net charge-offs to average loans ratio was 0.01% for the fourth quarter of 2024 and 0.00% for the third quarter of 2024.

    Deposits

    As of December 31, 2024, deposits were $2.81 billion, an increase of $58.0 million, or 2.1%, compared to September 30, 2024. Average deposits for the fourth quarter of 2024 were $2.78 billion, an increase of $53.5 million, or 2.0%, from the prior quarter. The following tables provide details on our deposit portfolio:

    Deposits by Account Type
      December 31, 2024   September 30, 2024   Change from
    September 30, 2024 to
    December 31, 2024
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Noninterest-bearing demand deposits $ 866,496   30.9 %   $ 882,394   32.1 %   $ (15,898 )   (1.8 %)
    Interest-bearing deposits:                      
    Interest-bearing demand deposits   154,720   5.5 %     163,787   6.0 %     (9,067 )   (5.5 %)
    NOW accounts   467,118   16.7 %     379,566   13.8 %     87,552     23.1 %
    Money market accounts   556,769   19.8 %     551,229   20.0 %     5,540     1.0 %
    Savings accounts   169,894   6.1 %     166,723   6.1 %     3,171     1.9 %
    Time deposits less than or equal to $250,000   403,096   14.3 %     411,361   15.0 %     (8,265 )   (2.0 %)
    Time deposits greater than $250,000   187,013   6.7 %     192,065   7.0 %     (5,052 )   (2.6 %)
    Total interest-bearing deposits   1,938,610   69.1 %     1,864,731   67.9 %     73,879     4.0 %
    Total deposits $ 2,805,106   100.0 %   $ 2,747,125   100.0 %   $ 57,981     2.1 %
                                         
    Deposits by Customer Type
      December 31, 2024   September 30, 2024   Change from
    September 30, 2024 to
    December 31, 2024
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Consumer $ 1,362,740   48.6 %   $ 1,348,281   49.1 %   $ 14,459     1.1 %
    Commercial   1,178,488   42.0 %     1,191,625   43.4 %     (13,137 )   (1.1 %)
    Public   263,878   9.4 %     207,219   7.5 %     56,659     27.3 %
    Total deposits $ 2,805,106   100.0 %   $ 2,747,125   100.0 %   $ 57,981     2.1 %
                                         

    The increase in deposits in the fourth quarter of 2024 was mainly due to the seasonal inflow of funds from public entity customers, partially offset by a decrease in commercial customer deposit balances related to normal business activity.

    The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout Louisiana. As of December 31, 2024, the average deposit account size was approximately $28,000.

    As of December 31, 2024, our estimated uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $879.8 million, or 31.4% of total deposits. This amount was estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of December 31, 2024, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $667.6 million, or 23.8% of total deposits. Our cash and cash equivalents of $269.0 million, combined with our available borrowing capacity of $1.62 billion, equaled 214.6% of our estimated uninsured deposits and 282.8% of our estimated uninsured deposits, excluding collateralized public entity deposits.

    Stockholders’ Equity

    Total stockholders’ equity as of December 31, 2024, was $319.7 million compared to $324.3 million as of September 30, 2024. The $4.6 million, or 1.4%, decrease in stockholders’ equity during the fourth quarter of 2024 was attributable to a $10.6 million, net of tax, market adjustment to accumulated other comprehensive loss related to securities, the repurchase of 50,632 shares of common stock for $2.7 million, and $610,000 in cash dividends related to a $0.09 per share cash dividend that we paid on December 19, 2024. The common stock repurchase of $2.7 million includes $213,000 of stock repurchase excise tax related to our 2023 and 2024 stock repurchases, which tax regulations require to be recorded as a reduction to shareholders’ equity. These decreases in stockholders’ equity were partially offset by $9.3 million of net income and $95,000 of stock compensation.

    Non-GAAP Disclosure

    Our accounting and reporting policies conform to United States generally accepted accounting principles (“GAAP”) and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission’s (“SEC”) rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.

    Management and the board of directors review tangible book value per share, tangible common equity to tangible assets, and realized book value per share as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner we calculate the non-GAAP financial measures that are discussed may differ from that of other companies’ reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.

    A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.

    About Red River Bancshares, Inc.

    Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.

    Forward-Looking Statements

    Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business, interest rates, and markets, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.

    Contact:
    Isabel V. Carriere, CPA, CGMA
    Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary
    318-561-4023
    icarriere@redriverbank.net 

    FINANCIAL HIGHLIGHTS (UNAUDITED)
     
        As of and for the
    Three Months Ended    		   As of and for the
    Years Ended
    (dollars in thousands, except per share data)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net Income   $ 9,306     $ 8,754     $ 8,292     $ 34,235     $ 34,879  
                         
    Per Common Share Data:                    
    Earnings per share, basic   $ 1.37     $ 1.28     $ 1.16     $ 4.96     $ 4.87  
    Earnings per share, diluted   $ 1.37     $ 1.27     $ 1.16     $ 4.95     $ 4.86  
    Book value per share   $ 47.18     $ 47.51     $ 42.85     $ 47.18     $ 42.85  
    Tangible book value per share (1)   $ 46.95     $ 47.28     $ 42.63     $ 46.95     $ 42.63  
    Realized book value per share (1)   $ 56.07     $ 54.78     $ 51.38     $ 56.07     $ 51.38  
    Cash dividends per share   $ 0.09     $ 0.09     $ 0.08     $ 0.36     $ 0.32  
    Shares outstanding     6,777,238       6,826,120       7,091,637       6,777,238       7,091,637  
    Weighted average shares outstanding, basic     6,797,469       6,851,223       7,128,988       6,898,286       7,164,314  
    Weighted average shares outstanding, diluted     6,816,299       6,867,474       7,145,870       6,918,060       7,181,728  
                         
    Summary Performance Ratios:                    
    Return on average assets     1.18 %     1.13 %     1.08 %     1.11 %     1.15 %
    Return on average equity     11.46 %     11.11 %     11.63 %     11.02 %     12.44 %
    Net interest margin     3.04 %     2.93 %     2.78 %     2.91 %     2.87 %
    Net interest margin FTE     3.09 %     2.98 %     2.82 %     2.96 %     2.91 %
    Efficiency ratio     58.71 %     60.09 %     60.51 %     60.29 %     59.39 %
    Loans HFI to deposits ratio     73.97 %     74.84 %     71.13 %     73.97 %     71.13 %
    Noninterest-bearing deposits to deposits ratio     30.89 %     32.12 %     32.71 %     30.89 %     32.71 %
    Noninterest income to average assets     0.63 %     0.70 %     0.67 %     0.66 %     0.70 %
    Operating expense to average assets     2.14 %     2.17 %     2.08 %     2.14 %     2.11 %
                         
    Summary Credit Quality Ratios:                    
    NPAs to assets     0.10 %     0.10 %     0.08 %     0.10 %     0.08 %
    Nonperforming loans to loans HFI     0.16 %     0.15 %     0.13 %     0.16 %     0.13 %
    ACL to loans HFI     1.05 %     1.06 %     1.07 %     1.05 %     1.07 %
    Net charge-offs to average loans     0.01 %     0.00 %     0.01 %     0.03 %     0.02 %
                         
    Capital Ratios:                    
    Stockholders’ equity to assets     10.15 %     10.46 %     9.71 %     10.15 %     9.71 %
    Tangible common equity to tangible assets(1)     10.11 %     10.41 %     9.67 %     10.11 %     9.67 %
    Total risk-based capital to risk-weighted assets     18.28 %     18.07 %     18.28 %     18.28 %     18.28 %
    Tier 1 risk-based capital to risk-weighted assets     17.12 %     17.05 %     17.24 %     17.12 %     17.24 %
    Common equity Tier 1 capital to risk-weighted assets     17.12 %     17.05 %     17.24 %     17.12 %     17.24 %
    Tier 1 risk-based capital to average assets     11.86 %     11.90 %     11.56 %     11.86 %     11.56 %

    (1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.

    RED RIVER BANCSHARES, INC.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
     
    (in thousands) December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    ASSETS                  
    Cash and due from banks $ 30,558     $ 39,664     $ 35,035     $ 19,401     $ 53,062  
    Interest-bearing deposits in other banks   238,417       192,983       178,038       210,404       252,364  
    Securities available-for-sale, at fair value   550,148       560,555       526,890       545,967       570,092  
    Securities held-to-maturity, at amortized cost   131,796       134,145       136,824       139,328       141,236  
    Equity securities, at fair value   2,937       3,028       2,921       2,934       2,965  
    Nonmarketable equity securities   2,328       2,305       2,283       2,261       2,239  
    Loans held for sale   2,547       1,805       3,878       1,653       1,306  
    Loans held for investment   2,075,013       2,056,048       2,047,890       2,038,072       1,992,858  
    Allowance for credit losses   (21,731 )     (21,757 )     (21,627 )     (21,564 )     (21,336 )
    Premises and equipment, net   59,441       57,661       57,910       57,539       57,088  
    Accrued interest receivable   10,048       9,465       9,570       9,995       9,945  
    Bank-owned life insurance   30,380       30,164       29,947       29,731       29,529  
    Intangible assets   1,546       1,546       1,546       1,546       1,546  
    Right-of-use assets   2,733       2,853       2,973       3,091       3,629  
    Other assets   33,433       31,285       34,450       32,940       32,287  
    Total Assets $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298     $ 3,128,810  
    LIABILITIES                  
    Noninterest-bearing deposits $ 866,496     $ 882,394     $ 892,942     $ 895,439     $ 916,456  
    Interest-bearing deposits   1,938,610       1,864,731       1,823,704       1,850,452       1,885,432  
    Total Deposits   2,805,106       2,747,125       2,716,646       2,745,891       2,801,888  
    Accrued interest payable   7,583       11,751       8,747       8,959       8,000  
    Lease liabilities   2,864       2,982       3,100       3,215       3,767  
    Accrued expenses and other liabilities   14,302       15,574       13,045       15,919       11,304  
    Total Liabilities   2,829,855       2,777,432       2,741,538       2,773,984       2,824,959  
    COMMITMENTS AND CONTINGENCIES   —       —       —       —       —  
    STOCKHOLDERS’ EQUITY                  
    Preferred stock, no par value   —       —       —       —       —  
    Common stock, no par value   38,655       41,402       44,413       45,177       55,136  
    Additional paid-in capital   2,777       2,682       2,590       2,485       2,407  
    Retained earnings   338,554       329,858       321,719       314,352       306,802  
    Accumulated other comprehensive income (loss)   (60,247 )     (49,624 )     (61,732 )     (62,700 )     (60,494 )
    Total Stockholders’ Equity   319,739       324,318       306,990       299,314       303,851  
    Total Liabilities and Stockholders’ Equity $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298     $ 3,128,810  
    RED RIVER BANCSHARES, INC.
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                         
        For the Three Months Ended   For the Years Ended
    (in thousands)     December 31,
    2024    		       September 30,
    2024    		     December 31,
    2023    		     December 31,
    2024    		       December 31,
    2023    		  
    INTEREST AND DIVIDEND INCOME                                    
    Interest and fees on loans   $ 28,285     $ 27,909   $ 24,898   $ 108,969     $ 93,439  
    Interest on securities     4,623       4,334     3,656     17,089       14,291  
    Interest on federal funds sold     —       —     —     —       886  
    Interest on deposits in other banks     2,699       2,630     3,438     11,077       9,797  
    Dividends on stock     23       28     49     95       155  
    Total Interest and Dividend Income     35,630       34,901     32,041     137,230       118,568  
    INTEREST EXPENSE                    
    Interest on deposits     11,943       12,444     10,747     47,936       32,066  
    Interest on other borrowed funds     —       —     —     —       64  
    Total Interest Expense     11,943       12,444     10,747     47,936       32,130  
    Net Interest Income     23,687       22,457     21,294     89,294       86,438  
    Provision for credit losses     300       300     250     1,200       735  
    Net Interest Income After Provision for Credit Losses     23,387       22,157     21,044     88,094       85,703  
    NONINTEREST INCOME                    
    Service charges on deposit accounts     1,452       1,486     1,459     5,674       5,776  
    Debit card income, net     960       905     875     3,836       3,563  
    Mortgage loan income     652       732     441     2,490       1,965  
    Brokerage income     924       987     1,039     3,791       3,798  
    Loan and deposit income     463       588     575     2,034       2,140  
    Bank-owned life insurance income     216       217     197     851       754  
    Gain (Loss) on equity securities     (91 )     107     132     (28 )     (14 )
    SBIC income     346       301     393     1,453       2,873  
    Other income (loss)     73       96     76     340       259  
    Total Noninterest Income     4,995       5,419     5,187     20,441       21,114  
    OPERATING EXPENSES                    
    Personnel expenses     9,769       9,700     9,233     38,623       37,241  
    Occupancy and equipment expenses     1,716       1,661     1,647     6,691       6,581  
    Technology expenses     884       865     693     3,182       2,759  
    Advertising     313       317     347     1,374       1,302  
    Other business development expenses     486       521     537     2,076       1,987  
    Data processing expense     681       652     631     2,331       2,320  
    Other taxes     547       622     679     2,407       2,721  
    Loan and deposit expenses     334       294     256     895       984  
    Legal and professional expenses     658       653     664     2,657       2,378  
    Regulatory assessment expenses     428       421     423     1,654       1,645  
    Other operating expenses     1,024       1,046     913     4,264       3,955  
    Total Operating Expenses     16,840       16,752     16,023     66,154       63,873  
    Income Before Income Tax Expense     11,542       10,824     10,208     42,381       42,944  
    Income tax expense     2,236       2,070     1,916     8,146       8,065  
    Net Income   $ 9,306     $ 8,754   $ 8,292   $ 34,235     $ 34,879  
                                         
    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Three Months Ended
      December 31, 2024   September 30, 2024
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,072,858     $ 28,285   5.34 %   $ 2,054,451     $ 27,909   5.32 %
    Securities – taxable   555,622       3,636   2.62 %     545,171       3,344   2.45 %
    Securities – tax-exempt   190,470       987   2.07 %     191,285       990   2.07 %
    Interest-bearing deposits in other banks   225,660       2,699   4.74 %     194,229       2,630   5.36 %
    Nonmarketable equity securities   2,307       23   3.99 %     2,284       28   4.85 %
    Total interest-earning assets   3,046,917     $ 35,630   4.60 %     2,987,420     $ 34,901   4.59 %
    Allowance for credit losses   (21,824 )             (21,702 )        
    Noninterest-earning assets   109,992               104,599          
    Total assets $ 3,135,085             $ 3,070,317          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,263,775     $ 5,658   1.78 %   $ 1,230,487     $ 6,042   1.95 %
    Time deposits   599,910       6,285   4.17 %     597,286       6,402   4.26 %
    Total interest-bearing deposits   1,863,685       11,943   2.55 %     1,827,773       12,444   2.71 %
    Other borrowings   —       —   — %     —       —   — %
    Total interest-bearing liabilities   1,863,685     $ 11,943   2.55 %     1,827,773     $ 12,444   2.71 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   918,804               901,192          
    Accrued interest and other liabilities   29,567               28,006          
    Total noninterest-bearing liabilities   948,371               929,198          
    Stockholders’ equity   323,029               313,346          
    Total liabilities and stockholders’ equity $ 3,135,085             $ 3,070,317          
    Net interest income     $ 23,687           $ 22,457    
    Net interest spread         2.05 %           1.88 %
    Net interest margin         3.04 %           2.93 %
    Net interest margin FTE(3)         3.09 %           2.98 %
    Cost of deposits         1.71 %           1.81 %
    Cost of funds         1.56 %           1.66 %

    (1) Includes average outstanding balances of loans held for sale of $3.2 million and $3.0 million for the three months ended December 31, 2024 and September 30, 2024, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Years Ended
      December 31, 2024   December 31, 2023
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,046,339     $ 108,969   5.24 %   $ 1,943,381     $ 93,439   4.74 %
    Securities – taxable   554,194       13,098   2.36 %     605,692       10,169   1.68 %
    Securities – tax-exempt   193,368       3,991   2.06 %     202,673       4,122   2.03 %
    Federal funds sold   —       —   — %     18,594       886   4.70 %
    Interest-bearing deposits in other banks   210,959       11,077   5.22 %     188,199       9,797   5.17 %
    Nonmarketable equity securities   2,273       95   4.19 %     3,353       155   4.61 %
    Total interest-earning assets   3,007,133     $ 137,230   4.50 %     2,961,892     $ 118,568   3.96 %
    Allowance for credit losses   (21,646 )             (20,980 )        
    Noninterest-earning assets   102,951               86,939          
    Total assets $ 3,088,438             $ 3,027,851          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,246,528     $ 23,082   1.85 %   $ 1,249,259     $ 17,555   1.41 %
    Time deposits   593,817       24,854   4.19 %     470,522       14,511   3.08 %
    Total interest-bearing deposits   1,840,345       47,936   2.60 %     1,719,781       32,066   1.86 %
    Other borrowings   —       —   — %     1,151       64   5.49 %
    Total interest-bearing liabilities   1,840,345     $ 47,936   2.60 %     1,720,932     $ 32,130   1.87 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   910,507               1,004,107          
    Accrued interest and other liabilities   26,884               22,385          
    Total noninterest-bearing liabilities   937,391               1,026,492          
    Stockholders’ equity   310,702               280,427          
    Total liabilities and stockholders’ equity $ 3,088,438             $ 3,027,851          
    Net interest income     $ 89,294           $ 86,438    
    Net interest spread         1.90 %           2.09 %
    Net interest margin         2.91 %           2.87 %
    Net interest margin FTE(3)         2.96 %           2.91 %
    Cost of deposits         1.74 %           1.18 %
    Cost of funds         1.59 %           1.08 %

    (1) Includes average outstanding balances of loans held for sale of $2.9 million and $2.4 million for the years ended December 31, 2024 and 2023, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
     
    (dollars in thousands, except per share data) December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Tangible common equity          
    Total stockholders’ equity $ 319,739     $ 324,318     $ 303,851  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible common equity (non-GAAP) $ 318,193     $ 322,772     $ 302,305  
    Realized common equity          
    Total stockholders’ equity $ 319,739     $ 324,318     $ 303,851  
    Adjustments:          
    Accumulated other comprehensive (income) loss   60,247       49,624       60,494  
    Total realized common equity (non-GAAP) $ 379,986     $ 373,942     $ 364,345  
    Common shares outstanding   6,777,238       6,826,120       7,091,637  
    Book value per share $ 47.18     $ 47.51     $ 42.85  
    Tangible book value per share (non-GAAP) $ 46.95     $ 47.28     $ 42.63  
    Realized book value per share (non-GAAP) $ 56.07     $ 54.78     $ 51.38  
               
    Tangible assets          
    Total assets $ 3,149,594     $ 3,101,750     $ 3,128,810  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible assets (non-GAAP) $ 3,148,048     $ 3,100,204     $ 3,127,264  
    Total stockholders’ equity to assets   10.15 %     10.46 %     9.71 %
    Tangible common equity to tangible assets (non-GAAP)   10.11 %     10.41 %     9.67 %

    The MIL Network –

  • MIL-OSI: First Merchants Corporation Announces Fourth Quarter 2024 Earnings Per Share

    Source: GlobeNewswire (MIL-OSI)

    MUNCIE, Ind., Jan. 30, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

    Fourth Quarter 2024 Highlights:

    • Net income available to common stockholders was $63.9 million and diluted earnings per common share totaled $1.10, compared to $48.7 million and $0.84 in the third quarter of 2024, and $42.0 million and $0.71 in the fourth quarter of 2023. Excluding the impact of the branch sale and repositioning of the available for sale securities portfolio, adjusted net income available to common stockholders1was $58.1 million or $1.00 per share for the fourth quarter of 2024.
    • Strong capital position with Common Equity Tier 1 Capital Ratio of 11.43% and Tangible Common Equity to Tangible Assets Ratio of 8.81%.
    • Net interest margin was 3.28% compared to 3.23% on a linked quarter basis and 3.16% in the fourth quarter of 2023.
    • Total loans grew $185.6 million, or 5.9% annualized, on a linked quarter basis, and $368.1 million, or 2.9% during the last twelve months.
    • Total deposits increased $156.5 million, or 4.4% annualized, on a linked quarter basis, and declined $32.4 million, or 0.2%, during the last twelve months after normalizing for deposits sold during the fourth quarter.
    • Nonperforming assets to total assets were 43 basis points compared to 35 basis points on a linked quarter basis.
    • Adjusted efficiency ratio totaled 53.60%1for the quarter.
    • Completed the sale of five Illinois branches and certain loans and deposits to Old Second National Bank on December 6, 2024.

    “The fourth quarter was a strong finish to the year and showed the momentum we have built with healthy increases in core earnings, NIM and ROA,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “We restructured a portion of our securities portfolio and completed the Illinois branch sale to help prioritize our core markets. These actions and the completion of multiple technology initiatives in 2024 have positioned First Merchants to deliver strong results in 2025.”

    Fourth Quarter Financial Results:

    First Merchants Corporation (the “Corporation”) reported fourth quarter 2024 net income available to common stockholders of $63.9 million compared to $42.0 million during the same period in 2023. Diluted earnings per common share for the period totaled $1.10 compared to the fourth quarter of 2023 result of $0.71. Excluding non-core income and expenses incurred in each period, adjusted net income available to common stockholders1 for the fourth quarter 2024 was $58.1 million, or $1.00 diluted earnings per common share compared to $53.4 million, or $0.90 in the same period in 2023.

    During the quarter, the Corporation completed the sale of five Illinois branches along with loans of $7.4 million and deposits of $267.4 million, generating a gain of $20.0 million recorded in non-interest income. The sale of these branches represents the Corporation’s exit from suburban Chicago markets.

    Total assets equaled $18.3 billion and loans totaled $12.9 billion as of quarter-end. During the past twelve months, total loans grew by $368.1 million, or 2.9%. On a linked quarter basis, loans grew $185.6 million, or 5.9% annualized, with growth primarily in commercial loans.

    Investments totaling $3.5 billion decreased $350.7 million, or 9.2%, during the last twelve months and decreased $201.5 million on a linked quarter basis. The decline during the quarter was partially due to the sale of $109.6 million of available for sale securities with a weighted average tax-equivalent yield of 2.31%, which resulted in a loss of $11.6 million. The remaining decline for the quarter was due to security paydowns and maturities, as well as a decline in valuation of securities reflecting the movement of interest rates. Sales of available for sale securities in 2024 totaled $268.5 million and resulted in a loss of $20.8 million.

    Total deposits were $14.5 billion as of quarter-end and decreased by $299.8 million, or 2.0%, over the past twelve months. The decline was primarily due to the sale of the Illinois branches during the fourth quarter which included $267.4 million of deposits. Excluding this impact, deposits declined by $32.4 million in 2024. On a linked quarter basis, deposits grew by $156.5 million, or 4.4% annualized. The loan to deposit ratio increased slightly to 88.5% at period end from 88.0% in the prior quarter.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $192.8 million as of quarter-end, or 1.50% of total loans, an increase of $4.9 million from prior quarter. Loan charge-offs, net of recoveries totaled $0.8 million and provision for loans of $5.7 million was recorded during the quarter. Reserves for unfunded commitments totaled $18.0 million declining during the quarter due to reserve release of $1.5 million. Net provision for the quarter totaled $4.2 million. Non-performing assets to total assets were 43 basis points for the fourth quarter of 2024, an increase of eight basis points compared to 35 basis points in the prior quarter.

    Net interest income totaled $134.4 million for the quarter, an increase of $3.3 million, or 2.5%, compared to the prior quarter and an increase of $4.3 million, or 3.3%, compared to the fourth quarter of 2023. Fully taxable equivalent net interest margin was 3.28%, an increase of five basis points compared to the third quarter of 2024, and an increase of 12 basis points compared to the fourth quarter of 2023. The increase in net interest margin compared to the third quarter was due to lower funding costs and a more favorable earning asset and funding mix.

    Noninterest income totaled $42.7 million for the quarter, an increase of $17.9 million compared to the third quarter of 2024 and an increase of $16.3 million compared to the fourth quarter of 2023. When excluding non-core income from each period, noninterest income totaled $34.4 million for the quarter, an increase of $0.4 million compared to third quarter of 2024, and an increase of $5.6 million compared to the fourth quarter of 2023. The increase in core noninterest income over the fourth quarter of 2023 was primarily due to an increase in gains on sales of loans and CRA investment income.

    Noninterest expense totaled $96.3 million for the quarter, an increase of $1.7 million from the third quarter of 2024 and a decrease of $11.8 million from the fourth quarter of 2023. The increase in the linked quarter was from higher marketing costs and other one-time operating expenses. The decrease from the fourth quarter of 2023 was due to one-time charges incurred in the prior year which included an FDIC special assessment, early retirement and severance costs, and a lease termination.

    The Corporation’s total risk-based capital ratio totaled 13.31%, common equity tier 1 capital ratio totaled 11.43%, and the tangible common equity ratio totaled 8.81%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    1 See “Non-GAAP Financial Information” for reconciliation

    CONFERENCE CALL

    First Merchants Corporation will conduct a fourth quarter earnings conference call and webcast at 11:30 a.m. (ET) on Thursday, January 30, 2025.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register.vevent.com/register/BIc49ad0293a7844dca2e7171f51e600dd95f36e86b6)

    To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/9t5v76m2) during the time of the call. A replay of the webcast will be available until January 30, 2026.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

    CONSOLIDATED BALANCE SHEETS      
    (Dollars In Thousands) December 31,
        2024       2023  
    ASSETS      
    Cash and due from banks $ 87,616     $ 112,649  
    Interest-bearing deposits   298,891       436,080  
    Investment securities, net of allowance for credit losses of $245,000 and $245,000   3,460,695       3,811,364  
    Loans held for sale   18,663       18,934  
    Loans   12,854,359       12,486,027  
    Less: Allowance for credit losses – loans   (192,757 )     (204,934 )
    Net loans   12,661,602       12,281,093  
    Premises and equipment   129,743       133,896  
    Federal Home Loan Bank stock   41,690       41,769  
    Interest receivable   91,829       97,664  
    Goodwill and other intangibles   731,830       739,101  
    Cash surrender value of life insurance   304,906       306,301  
    Other real estate owned   4,948       4,831  
    Tax asset, deferred and receivable   92,387       99,883  
    Other assets   387,169       322,322  
    TOTAL ASSETS $ 18,311,969     $ 18,405,887  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 2,325,579     $ 2,500,062  
    Interest-bearing   12,196,047       12,321,391  
    Total Deposits   14,521,626       14,821,453  
    Borrowings:      
    Federal funds purchased   99,226       —  
    Securities sold under repurchase agreements   142,876       157,280  
    Federal Home Loan Bank advances   822,554       712,852  
    Subordinated debentures and other borrowings   93,529       158,644  
    Total Borrowings   1,158,185       1,028,776  
    Interest payable   16,102       18,912  
    Other liabilities   311,073       289,033  
    Total Liabilities   16,006,986       16,158,174  
    STOCKHOLDERS’ EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized — 600 cumulative shares      
    Issued and outstanding – 125 cumulative shares   125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized — 10,000 non-cumulative perpetual shares      
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000  
    Common Stock, $.125 stated value:      
    Authorized — 100,000,000 shares      
    Issued and outstanding – 57,974,535 and 59,424,122 shares   7,247       7,428  
    Additional paid-in capital   1,188,768       1,236,506  
    Retained earnings   1,272,528       1,154,624  
    Accumulated other comprehensive loss   (188,685 )     (175,970 )
    Total Stockholders’ Equity   2,304,983       2,247,713  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,311,969     $ 18,405,887  
     
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Twelve Months Ended
    (Dollars In Thousands, Except Per Share Amounts) December 31,   December 31,
        2024       2023       2024       2023  
    INTEREST INCOME              
    Loans:              
    Taxable $ 197,536     $ 197,523     $ 803,652     $ 747,837  
    Tax-exempt   9,020       8,197       34,262       31,954  
    Investment securities:              
    Taxable   9,024       8,644       36,086       35,207  
    Tax-exempt   12,754       13,821       53,487       58,117  
    Deposits with financial institutions   5,350       8,034       16,992       17,719  
    Federal Home Loan Bank stock   958       771       3,527       3,052  
    Total Interest Income   234,642       236,990       948,006       893,886  
    INTEREST EXPENSE              
    Deposits   89,835       96,655       386,127       306,092  
    Federal funds purchased   26       1       481       1,421  
    Securities sold under repurchase agreements   680       827       3,057       3,451  
    Federal Home Loan Bank advances   8,171       6,431       29,886       27,206  
    Subordinated debentures and other borrowings   1,560       3,013       7,341       10,316  
    Total Interest Expense   100,272       106,927       426,892       348,486  
    NET INTEREST INCOME   134,370       130,063       521,114       545,400  
    Provision for credit losses   4,200       1,500       35,700       3,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   130,170       128,563       485,414       541,900  
    NONINTEREST INCOME              
    Service charges on deposit accounts   8,124       7,690       32,606       30,837  
    Fiduciary and wealth management fees   8,665       8,187       34,215       30,840  
    Card payment fees   4,957       4,437       19,317       18,862  
    Net gains and fees on sales of loans   5,681       4,111       20,840       15,659  
    Derivative hedge fees   1,594       1,049       3,082       3,385  
    Other customer fees   316       237       1,547       1,880  
    Earnings on cash surrender value of life insurance   2,188       3,202       8,464       8,347  
    Net realized losses on sales of available for sale securities   (11,592 )     (2,317 )     (20,757 )     (6,930 )
    Gain on branch sale   19,983       —       19,983       —  
    Other income (loss)   2,826       (152 )     6,283       2,722  
    Total Noninterest Income   42,742       26,444       125,580       105,602  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   55,437       60,967       221,167       228,745  
    Net occupancy   7,335       9,089       28,387       29,859  
    Equipment   7,028       6,108       26,802       24,113  
    Marketing   2,582       2,647       7,389       7,427  
    Outside data processing fees   6,029       5,875       27,140       25,165  
    Printing and office supplies   377       402       1,462       1,552  
    Intangible asset amortization   1,771       2,182       7,271       8,743  
    FDIC assessments   3,744       7,557       15,029       14,674  
    Other real estate owned and foreclosure expenses   227       1,743       2,076       3,318  
    Professional and other outside services   3,777       3,981       14,586       16,172  
    Other expenses   7,982       7,552       27,957       28,502  
    Total Noninterest Expenses   96,289       108,103       379,266       388,270  
    INCOME BEFORE INCOME TAX   76,623       46,904       231,728       259,232  
    Income tax expense   12,274       4,425       30,326       35,446  
    NET INCOME   64,349       42,479       201,402       223,786  
    Preferred stock dividends   469       469       1,875       1,875  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 63,880     $ 42,010     $ 199,527     $ 221,911  
    Per Share Data:              
    Basic Net Income Available to Common Stockholders $ 1.10     $ 0.71     $ 3.42     $ 3.74  
    Diluted Net Income Available to Common Stockholders $ 1.10     $ 0.71     $ 3.41     $ 3.73  
    Cash Dividends Paid to Common Stockholders $ 0.35     $ 0.34     $ 1.39     $ 1.34  
    Average Diluted Common Shares Outstanding (in thousands)   58,247       59,556       58,533       59,489  
     
    FINANCIAL HIGHLIGHTS              
    (Dollars in thousands) Three Months Ended   Twelve Months Ended
      December 31,   December 31,
        2024       2023       2024       2023  
    NET CHARGE-OFFS $ 771     $ 3,148     $ 49,377     $ 25,643  
                   
    AVERAGE BALANCES:              
    Total Assets $ 18,478,303     $ 18,397,200     $ 18,400,495     $ 18,186,507  
    Total Loans   12,757,676       12,396,451       12,634,324       12,297,974  
    Total Earning Assets   17,089,198       17,222,714       17,054,267       16,991,787  
    Total Deposits   14,788,294       15,000,580       14,816,564       14,721,498  
    Total Stockholders’ Equity   2,312,270       2,130,993       2,252,491       2,127,262  
                   
    FINANCIAL RATIOS:              
    Return on Average Assets   1.39 %     0.92 %     1.09 %     1.23 %
    Return on Average Stockholders’ Equity   11.05       7.89       8.86       10.43  
    Return on Tangible Common Stockholders’ Equity   16.75       12.75       13.71       16.76  
    Average Earning Assets to Average Assets   92.48       93.62       92.68       93.43  
    Allowance for Credit Losses – Loans as % of Total Loans   1.50       1.64       1.50       1.64  
    Net Charge-offs as % of Average Loans (Annualized)   0.02       0.10       0.39       0.21  
    Average Stockholders’ Equity to Average Assets   12.51       11.58       12.24       11.70  
    Tax Equivalent Yield on Average Earning Assets   5.63       5.64       5.69       5.40  
    Interest Expense/Average Earning Assets   2.35       2.48       2.50       2.05  
    Net Interest Margin (FTE) on Average Earning Assets   3.28       3.16       3.19       3.35  
    Efficiency Ratio   48.48       63.26       53.55       55.17  
    Tangible Common Book Value Per Share $ 26.78     $ 25.06     $ 26.78     $ 25.06  
     
    NONPERFORMING ASSETS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    Nonaccrual Loans $ 73,773     $ 59,088     $ 61,906     $ 62,478     $ 53,580  
    Other Real Estate Owned and Repossessions   4,948       5,247       4,824       4,886       4,831  
    Nonperforming Assets (NPA)   78,721       64,335       66,730       67,364       58,411  
    90+ Days Delinquent   5,902       14,105       1,686       2,838       172  
    NPAs & 90 Day Delinquent $ 84,623     $ 78,440     $ 68,416     $ 70,202     $ 58,583  
                       
    Allowance for Credit Losses – Loans $ 192,757     $ 187,828     $ 189,537     $ 204,681     $ 204,934  
    Quarterly Net Charge-offs   771       6,709       39,644       2,253       3,148  
    NPAs / Actual Assets %   0.43 %     0.35 %     0.36 %     0.37 %     0.32 %
    NPAs & 90 Day / Actual Assets %   0.46 %     0.43 %     0.37 %     0.38 %     0.32 %
    NPAs / Actual Loans and OREO %   0.61 %     0.51 %     0.53 %     0.54 %     0.47 %
    Allowance for Credit Losses – Loans / Actual Loans (%)   1.50 %     1.48 %     1.50 %     1.64 %     1.64 %
    Net Charge-offs as % of Average Loans (Annualized)   0.02 %     0.21 %     1.26 %     0.07 %     0.10 %
     
    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    ASSETS                  
    Cash and due from banks $ 87,616     $ 84,719     $ 105,372     $ 100,514     $ 112,649  
    Interest-bearing deposits   298,891       359,126       168,528       410,497       436,080  
    Investment securities, net of allowance for credit losses   3,460,695       3,662,145       3,753,088       3,783,574       3,811,364  
    Loans held for sale   18,663       40,652       32,292       15,118       18,934  
    Loans   12,854,359       12,646,808       12,639,650       12,465,582       12,486,027  
    Less: Allowance for credit losses – loans   (192,757 )     (187,828 )     (189,537 )     (204,681 )     (204,934 )
    Net loans   12,661,602       12,458,980       12,450,113       12,260,901       12,281,093  
    Premises and equipment   129,743       129,582       133,245       132,706       133,896  
    Federal Home Loan Bank stock   41,690       41,716       41,738       41,758       41,769  
    Interest receivable   91,829       92,055       97,546       92,550       97,664  
    Goodwill and other intangibles   731,830       733,601       735,373       737,144       739,101  
    Cash surrender value of life insurance   304,906       304,613       306,379       306,028       306,301  
    Other real estate owned   4,948       5,247       4,824       4,886       4,831  
    Tax asset, deferred and receivable   92,387       86,732       107,080       101,121       99,883  
    Other assets   387,169       348,384       367,845       331,006       322,322  
    TOTAL ASSETS $ 18,311,969     $ 18,347,552     $ 18,303,423     $ 18,317,803     $ 18,405,887  
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 2,325,579     $ 2,334,197     $ 2,303,313     $ 2,338,364     $ 2,500,062  
    Interest-bearing   12,196,047       12,030,903       12,265,757       12,546,220       12,321,391  
    Total Deposits   14,521,626       14,365,100       14,569,070       14,884,584       14,821,453  
    Borrowings:                  
    Federal funds purchased   99,226       30,000       147,229       —       —  
    Securities sold under repurchase agreements   142,876       124,894       100,451       130,264       157,280  
    Federal Home Loan Bank advances   822,554       832,629       832,703       612,778       712,852  
    Subordinated debentures and other borrowings   93,529       93,562       93,589       118,612       158,644  
    Total Borrowings   1,158,185       1,081,085       1,173,972       861,654       1,028,776  
    Deposits and other liabilities held for sale   —       288,476       —       —       —  
    Interest payable   16,102       18,089       18,554       19,262       18,912  
    Other liabilities   311,073       292,429       329,302       327,500       289,033  
    Total Liabilities   16,006,986       16,045,179       16,090,898       16,093,000       16,158,174  
    STOCKHOLDERS’ EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized — 600 cumulative shares                  
    Issued and outstanding – 125 cumulative shares   125       125       125       125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized — 10,000 non-cumulative perpetual shares                  
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000       25,000       25,000       25,000  
    Common Stock, $.125 stated value:                  
    Authorized — 100,000,000 shares                  
    Issued and outstanding   7,247       7,265       7,256       7,321       7,428  
    Additional paid-in capital   1,188,768       1,192,683       1,191,193       1,208,447       1,236,506  
    Retained earnings   1,272,528       1,229,125       1,200,930       1,181,939       1,154,624  
    Accumulated other comprehensive loss   (188,685 )     (151,825 )     (211,979 )     (198,029 )     (175,970 )
    Total Stockholders’ Equity   2,304,983       2,302,373       2,212,525       2,224,803       2,247,713  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,311,969     $ 18,347,552     $ 18,303,423     $ 18,317,803     $ 18,405,887  
                       
    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    INTEREST INCOME                  
    Loans:                  
    Taxable $ 197,536     $ 206,680     $ 201,413     $ 198,023     $ 197,523  
    Tax-exempt   9,020       8,622       8,430       8,190       8,197  
    Investment securities:                  
    Taxable   9,024       9,263       9,051       8,748       8,644  
    Tax-exempt   12,754       13,509       13,613       13,611       13,821  
    Deposits with financial institutions   5,350       2,154       2,995       6,493       8,034  
    Federal Home Loan Bank stock   958       855       879       835       771  
    Total Interest Income   234,642       241,083       236,381       235,900       236,990  
    INTEREST EXPENSE                  
    Deposits   89,835       98,856       99,151       98,285       96,655  
    Federal funds purchased   26       329       126       —       1  
    Securities sold under repurchase agreements   680       700       645       1,032       827  
    Federal Home Loan Bank advances   8,171       8,544       6,398       6,773       6,431  
    Subordinated debentures and other borrowings   1,560       1,544       1,490       2,747       3,013  
    Total Interest Expense   100,272       109,973       107,810       108,837       106,927  
    NET INTEREST INCOME   134,370       131,110       128,571       127,063       130,063  
    Provision for credit losses   4,200       5,000       24,500       2,000       1,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   130,170       126,110       104,071       125,063       128,563  
    NONINTEREST INCOME                  
    Service charges on deposit accounts   8,124       8,361       8,214       7,907       7,690  
    Fiduciary and wealth management fees   8,665       8,525       8,825       8,200       8,187  
    Card payment fees   4,957       5,121       4,739       4,500       4,437  
    Net gains and fees on sales of loans   5,681       6,764       5,141       3,254       4,111  
    Derivative hedge fees   1,594       736       489       263       1,049  
    Other customer fees   316       344       460       427       237  
    Earnings on cash surrender value of life insurance   2,188       2,755       1,929       1,592       3,202  
    Net realized losses on sales of available for sale securities   (11,592 )     (9,114 )     (49 )     (2 )     (2,317 )
    Gain on branch sale   19,983       —       —       —       —  
    Other income (loss)   2,826       1,374       1,586       497       (152 )
    Total Noninterest Income   42,742       24,866       31,334       26,638       26,444  
    NONINTEREST EXPENSES                  
    Salaries and employee benefits   55,437       55,223       52,214       58,293       60,967  
    Net occupancy   7,335       6,994       6,746       7,312       9,089  
    Equipment   7,028       6,949       6,599       6,226       6,108  
    Marketing   2,582       1,836       1,773       1,198       2,647  
    Outside data processing fees   6,029       7,150       7,072       6,889       5,875  
    Printing and office supplies   377       378       354       353       402  
    Intangible asset amortization   1,771       1,772       1,771       1,957       2,182  
    FDIC assessments   3,744       3,720       3,278       4,287       7,557  
    Other real estate owned and foreclosure expenses   227       942       373       534       1,743  
    Professional and other outside services   3,777       3,035       3,822       3,952       3,981  
    Other expenses   7,982       6,630       7,411       5,934       7,552  
    Total Noninterest Expenses   96,289       94,629       91,413       96,935       108,103  
    INCOME BEFORE INCOME TAX   76,623       56,347       43,992       54,766       46,904  
    Income tax expense   12,274       7,160       4,067       6,825       4,425  
    NET INCOME   64,349       49,187       39,925       47,941       42,479  
    Preferred stock dividends   469       468       469       469       469  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 63,880     $ 48,719     $ 39,456     $ 47,472     $ 42,010  
    Per Share Data:                  
    Basic Net Income Available to Common Stockholders $ 1.10     $ 0.84     $ 0.68     $ 0.80     $ 0.71  
    Diluted Net Income Available to Common Stockholders $ 1.10     $ 0.84     $ 0.68     $ 0.80     $ 0.71  
    Cash Dividends Paid to Common Stockholders $ 0.35     $ 0.35     $ 0.35     $ 0.34     $ 0.34  
    Average Diluted Common Shares Outstanding (in thousands)   58,247       58,289       58,328       59,273       59,556  
    FINANCIAL RATIOS:                  
    Return on Average Assets   1.39 %     1.07 %     0.87 %     1.04 %     0.92 %
    Return on Average Stockholders’ Equity   11.05       8.66       7.16       8.47       7.89  
    Return on Tangible Common Stockholders’ Equity   16.75       13.39       11.29       13.21       12.75  
    Average Earning Assets to Average Assets   92.48       92.54       92.81       92.91       93.62  
    Allowance for Credit Losses – Loans as % of Total Loans   1.50       1.48       1.50       1.64       1.64  
    Net Charge-offs as % of Average Loans (Annualized)   0.02       0.21       1.26       0.07       0.10  
    Average Stockholders’ Equity to Average Assets   12.51       12.26       12.02       12.17       11.58  
    Tax Equivalent Yield on Average Earning Assets   5.63       5.82       5.69       5.65       5.64  
    Interest Expense/Average Earning Assets   2.35       2.59       2.53       2.55       2.48  
    Net Interest Margin (FTE) on Average Earning Assets   3.28       3.23       3.16       3.10       3.16  
    Efficiency Ratio   48.48       53.76       53.84       59.21       63.26  
    Tangible Common Book Value Per Share $ 26.78     $ 26.64     $ 25.10     $ 25.07     $ 25.06  
    LOANS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
        2024       2024       2024       2024       2023  
    Commercial and industrial loans $ 4,114,292     $ 4,041,217     $ 3,949,817     $ 3,722,365     $ 3,670,948  
    Agricultural land, production and other loans to farmers   256,312       238,743       239,926       234,431       263,414  
    Real estate loans:                  
    Construction   792,144       814,704       823,267       941,726       957,545  
    Commercial real estate, non-owner occupied   2,274,016       2,251,351       2,323,533       2,368,360       2,400,839  
    Commercial real estate, owner occupied   1,157,944       1,152,751       1,174,195       1,137,894       1,162,083  
    Residential   2,374,729       2,366,943       2,370,905       2,316,490       2,288,921  
    Home equity   659,811       641,188       631,104       618,258       617,571  
    Individuals’ loans for household and other personal expenditures   166,028       158,480       162,089       161,459       168,388  
    Public finance and other commercial loans   1,059,083       981,431       964,814       964,599       956,318  
    Loans   12,854,359       12,646,808       12,639,650       12,465,582       12,486,027  
    Allowance for credit losses – loans   (192,757 )     (187,828 )     (189,537 )     (204,681 )     (204,934 )
    NET LOANS $ 12,661,602     $ 12,458,980     $ 12,450,113     $ 12,260,901     $ 12,281,093  
     
    DEPOSITS                  
    (Dollars In Thousands) December 31,   September 30,   June 30,   March 31,   December 31,
      2024   2024   2024   2024   2023
    Demand deposits $ 7,980,061   $ 7,678,510   $ 7,757,679   $ 7,771,976   $ 7,965,862
    Savings deposits   4,522,758     4,302,236     4,339,161     4,679,593     4,516,433
    Certificates and other time deposits of $100,000 or more   1,043,068     1,277,833     1,415,131     1,451,443     1,408,985
    Other certificates and time deposits   692,068     802,949     889,949     901,280     849,906
    Brokered certificates of deposits1   283,671     303,572     167,150     80,292     80,267
    TOTAL DEPOSITS2 $ 14,521,626   $ 14,365,100   $ 14,569,070   $ 14,884,584   $ 14,821,453

    1 – Total brokered deposits of $955.7 million, which includes brokered CD’s of $283.7 million at December 31, 2024.
    2 – Total deposits at September 30, 2024 excluded $287.7 million of deposits reclassified to Deposits and other liabilities held for sale related to the Illinois branch sale. The sale of $267.4 million of deposits associated with the Illinois branch sale was subsequently completed on December 6, 2024.

    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Three Months Ended
      December 31, 2024   December 31, 2023
      Average Balance   Interest
    Income /
    Expense    		   Average
    Rate    		   Average Balance   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 522,868   $ 5,350   4.09 %   $ 700,705   $ 8,034   4.59 %
    Federal Home Loan Bank stock   41,703     958   9.19       41,792     771   7.38  
    Investment Securities:(1)                      
    Taxable   1,677,554     9,024   2.15       1,801,533     8,644   1.92  
    Tax-exempt(2)   2,089,397     16,144   3.09       2,282,233     17,495   3.07  
    Total Investment Securities   3,766,951     25,168   2.67       4,083,766     26,139   2.56  
    Loans held for sale   36,219     550   6.07       16,355     246   6.02  
    Loans:(3)                      
    Commercial   8,753,723     156,414   7.15       8,533,233     159,190   7.46  
    Real estate mortgage   2,177,351     24,401   4.48       2,118,060     21,829   4.12  
    HELOC and installment   841,537     16,171   7.69       820,728     16,258   7.92  
    Tax-exempt(2)   948,846     11,418   4.81       908,075     10,376   4.57  
    Total Loans   12,757,676     208,954   6.55       12,396,451     207,899   6.71  
    Total Earning Assets   17,089,198     240,430   5.63 %     17,222,714     242,843   5.64 %
    Total Non-Earning Assets   1,389,105             1,174,486        
    TOTAL ASSETS $ 18,478,303           $ 18,397,200        
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $ 5,564,228   $ 37,049   2.66 %   $ 5,504,725   $ 40,996   2.98 %
    Money market deposits   3,189,334     25,463   3.19       3,096,085     27,909   3.61  
    Savings deposits   1,362,705     3,102   0.91       1,587,758     3,913   0.99  
    Certificates and other time deposits   2,313,284     24,221   4.19       2,225,528     23,837   4.28  
    Total Interest-Bearing Deposits   12,429,551     89,835   2.89       12,414,096     96,655   3.11  
    Borrowings   1,049,677     10,437   3.98       1,013,856     10,272   4.05  
    Total Interest-Bearing Liabilities   13,479,228     100,272   2.98       13,427,952     106,927   3.19  
    Noninterest-bearing deposits   2,358,743             2,586,484        
    Other liabilities   328,062             251,771        
    Total Liabilities   16,166,033             16,266,207        
    STOCKHOLDERS’ EQUITY   2,312,270             2,130,993        
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,478,303     100,272       $ 18,397,200     106,927    
    Net Interest Income (FTE)     $ 140,158           $ 135,916    
    Net Interest Spread (FTE)(4)         2.65 %           2.45 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.63 %           5.64 %
    Interest Expense / Average Earning Assets         2.35 %           2.48 %
    Net Interest Margin (FTE)(5)         3.28 %           3.16 %
                           
    (1)Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2)Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $5,788 and $5,853 for the three months ended December 31, 2024 and 2023, respectively.
    (3)Non accruing loans have been included in the average balances.
    (4)Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5)Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
                           
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS            
    (Dollars in Thousands)                      
      For the Twelve Months Ended
      December 31, 2024   December 31, 2023
      Average Balance   Interest
    Income /
    Expense    		   Average
    Rate    		   Average Balance   Interest
    Income /
    Expense    		   Average
    Rate
    Assets:                      
    Interest-bearing deposits $ 418,163   $ 16,992   4.06 %   $ 431,581   $ 17,719   4.11 %
    Federal Home Loan Bank stock   41,736     3,527   8.45       41,319     3,052   7.39  
    Investment Securities:(1)                      
    Taxable   1,759,578     36,086   2.05       1,854,438     35,207   1.90  
    Tax-exempt(2)   2,200,466     67,705   3.08       2,366,475     73,566   3.11  
    Total Investment Securities   3,960,044     103,791   2.62       4,220,913     108,773   2.58  
    Loans held for sale   29,650     1,792   6.04       21,766     1,292   5.94  
    Loans:(3)                      
    Commercial   8,687,638     641,393   7.38       8,519,706     603,611   7.08  
    Real estate mortgage   2,158,743     94,890   4.40       2,035,488     82,183   4.04  
    HELOC and installment   830,079     65,577   7.90       830,006     60,751   7.32  
    Tax-exempt(2)   928,214     43,370   4.67       891,008     40,448   4.54  
    Total Loans   12,634,324     847,022   6.70       12,297,974     788,285   6.41  
    Total Earning Assets   17,054,267     971,332   5.69 %     16,991,787     917,829   5.40 %
    Total Non-Earning Assets   1,346,228             1,194,720        
    Total Assets $ 18,400,495           $ 18,186,507        
    Liabilities:                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $ 5,506,492   $ 157,984   2.87 %   $ 5,435,733   $ 138,012   2.54 %
    Money market deposits   3,061,461     106,026   3.46       2,884,271     83,777   2.90  
    Savings deposits   1,463,707     14,587   1.00       1,694,230     14,606   0.86  
    Certificates and other time deposits   2,413,900     107,530   4.45       1,923,268     69,697   3.62  
    Total Interest-Bearing Deposits   12,445,560     386,127   3.10       11,937,502     306,092   2.56  
    Borrowings   1,005,017     40,765   4.06       1,111,472     42,394   3.81  
    Total Interest-Bearing Liabilities   13,450,577     426,892   3.17       13,048,974     348,486   2.67  
    Noninterest-bearing deposits   2,371,004             2,783,996        
    Other liabilities   326,423             226,275        
    Total Liabilities   16,148,004             16,059,245        
    Stockholders’ Equity   2,252,491             2,127,262        
    Total Liabilities and Stockholders’ Equity $ 18,400,495     426,892       $ 18,186,507     348,486    
    Net Interest Income (FTE)     $ 544,440           $ 569,343    
    Net Interest Spread (FTE)(4)         2.52 %           2.73 %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.69 %           5.40 %
    Interest Expense / Average Earning Assets         2.50 %           2.05 %
    Net Interest Margin (FTE)(5)         3.19 %           3.35 %
                           
    (1)Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2)Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $23,326 and $23,943 for the years ended December 31, 2024 and 2023, respectively.
    (3)Non accruing loans have been included in the average balances.           
    (4)Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5)Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Net Income Available to Common Stockholders – GAAP $ 63,880     $ 48,719     $ 39,456     $ 47,472     $ 42,010     $ 199,527     $ 221,911  
    Adjustments:                          
    PPP loan income   —       —       —       —       (7 )     —       (49 )
    Net realized losses on sales of available for sale securities   11,592       9,114       49       2       2,317       20,757       6,930  
    Gain on branch sale   (19,983 )     —       —       —       —       (19,983 )     —  
    Non-core expenses1,2,3   762       —       —       3,481       12,682       4,243       12,682  
    Tax on adjustments   1,851       (2,220 )     (12 )     (848 )     (3,652 )     (1,229 )     (4,767 )
    Adjusted Net Income Available to Common Stockholders – Non-GAAP $ 58,102     $ 55,613     $ 39,493     $ 50,107     $ 53,350     $ 203,315     $ 236,707  
                               
    Average Diluted Common Shares Outstanding (in thousands)   58,247       58,289       58,328       59,273       59,556       58,533       59,489  
                               
    Diluted Earnings Per Common Share – GAAP $ 1.10     $ 0.84     $ 0.68     $ 0.80     $ 0.71     $ 3.41     $ 3.73  
    Adjustments:                          
    PPP loan income   —       —       —       —       —       —       —  
    Net realized losses on sales of available for sale securities   0.20       0.15       —       —       0.04       0.35       0.12  
    Gain on branch sale   (0.34 )     —       —       —       —       (0.34 )     —  
    Non-core expenses1,2,3   0.01       —       —       0.06       0.21       0.07       0.21  
    Tax on adjustments   0.03       (0.04 )     —       (0.01 )     (0.06 )     (0.02 )     (0.08 )
    Adjusted Diluted Earnings Per Common Share – Non-GAAP $ 1.00     $ 0.95     $ 0.68     $ 0.85     $ 0.90     $ 3.47     $ 3.98  

    1 – Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
    3 – Non-core expenses in 4Q23 included $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.

    NET INTEREST MARGIN (“NIM”), ADJUSTED                
    (Dollars in Thousands)                
      Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Net Interest Income (GAAP) $ 134,370     $ 131,110     $ 128,571     $ 127,063     $ 130,063     $ 521,114     $ 545,400  
    Fully Taxable Equivalent (“FTE”) Adjustment   5,788       5,883       5,859       5,795       5,853       23,326       23,943  
    Net Interest Income (FTE) (non-GAAP) $ 140,158     $ 136,993     $ 134,430     $ 132,858     $ 135,916     $ 544,440     $ 569,343  
                               
    Average Earning Assets (GAAP) $ 17,089,198     $ 16,990,358     $ 17,013,984     $ 17,123,851     $ 17,222,714     $ 17,054,267     $ 16,991,787  
    Net Interest Margin (GAAP)   3.15 %     3.09 %     3.02 %     2.97 %     3.02 %     3.06 %     3.21 %
    Net Interest Margin (FTE) (non-GAAP)   3.28 %     3.23 %     3.16 %     3.10 %     3.16 %     3.19 %     3.35 %
     
    RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
    (Dollars In Thousands) Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Total Average Stockholders’ Equity (GAAP) $ 2,312,270     $ 2,251,547     $ 2,203,361     $ 2,242,139     $ 2,130,993     $ 2,252,491     $ 2,127,262  
    Less: Average Preferred Stock   (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )     (25,125 )
    Less: Average Intangible Assets, Net of Tax   (728,218 )     (729,581 )     (730,980 )     (732,432 )     (734,007 )     (730,295 )     (736,601 )
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,558,927     $ 1,496,841     $ 1,447,256     $ 1,484,582     $ 1,371,861     $ 1,497,071     $ 1,365,536  
                               
    Net Income Available to Common Stockholders (GAAP) $ 63,880     $ 48,719     $ 39,456     $ 47,472     $ 42,010     $ 199,527     $ 221,911  
    Plus: Intangible Asset Amortization, Net of Tax   1,399       1,399       1,399       1,546       1,724       5,744       6,906  
    Tangible Net Income (Non-GAAP) $ 65,279     $ 50,118     $ 40,855     $ 49,018     $ 43,734     $ 205,271     $ 228,817  
                               
    Return on Tangible Common Equity (Non-GAAP)   16.75 %     13.39 %     11.29 %     13.21 %     12.75 %     13.71 %     16.76 %
     
    EFFICIENCY RATIO – NON-GAAP                          
    (Dollars In Thousands) Three Months Ended   Twelve Months Ended
      December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
        2024       2024       2024       2024       2023       2024       2023  
    Non Interest Expense (GAAP) $ 96,289     $ 94,629     $ 91,413     $ 96,935     $ 108,103     $ 379,266     $ 388,270  
    Less: Intangible Asset Amortization   (1,771 )     (1,772 )     (1,771 )     (1,957 )     (2,182 )     (7,271 )     (8,743 )
    Less: OREO and Foreclosure Expenses   (227 )     (942 )     (373 )     (534 )     (1,743 )     (2,076 )     (3,318 )
    Adjusted Non Interest Expense (Non-GAAP) $ 94,291     $ 91,915     $ 89,269     $ 94,444     $ 104,178     $ 369,919     $ 376,209  
                               
    Net Interest Income (GAAP) $ 134,370     $ 131,110     $ 128,571     $ 127,063     $ 130,063     $ 521,114     $ 545,400  
    Plus: Fully Taxable Equivalent Adjustment   5,788       5,883       5,859       5,795       5,853       23,326       23,943  
    Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $ 140,158     $ 136,993     $ 134,430     $ 132,858     $ 135,916     $ 544,440     $ 569,343  
                               
    Non Interest Income (GAAP) $ 42,742     $ 24,866     $ 31,334     $ 26,638     $ 26,444     $ 125,580     $ 105,602  
    Less: Investment Securities (Gains) Losses   11,592       9,114       49       2       2,317       20,757       6,930  
    Adjusted Non Interest Income (Non-GAAP) $ 54,334     $ 33,980     $ 31,383     $ 26,640     $ 28,761     $ 146,337     $ 112,532  
    Adjusted Revenue (Non-GAAP) $ 194,492     $ 170,973     $ 165,813     $ 159,498     $ 164,677     $ 690,777     $ 681,875  
    Efficiency Ratio (Non-GAAP)   48.48 %     53.76 %     53.84 %     59.21 %     63.26 %     53.55 %     55.17 %
                               
    Adjusted Non Interest Expense (Non-GAAP) $ 94,291     $ 91,915     $ 89,269     $ 94,444     $ 104,178     $ 369,919     $ 376,209  
    Less: Acquisition-related Expenses   —       —       —       —       —       —       —  
    Less: Non-core Expenses1,2,3   (762 )     —       —       (3,481 )     (12,682 )     (4,243 )     (12,682 )
    Adjusted Non Interest Expense Excluding Non-core Expenses (Non-GAAP) $ 93,529     $ 91,915     $ 89,269     $ 90,963     $ 91,496     $ 365,676     $ 363,527  
                               
    Adjusted Revenue (Non-GAAP) $ 194,492     $ 170,973     $ 165,813     $ 159,498     $ 164,677     $ 690,777     $ 681,875  
    Less: Gain on Branch Sale   (19,983 )     —       —       —       —       (19,983 )     —  
    Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $ 174,509     $ 170,973     $ 165,813     $ 159,498     $ 164,677     $ 670,794     $ 681,875  
    Adjusted Efficiency Ratio (Non-GAAP)   53.60 %     53.76 %     53.84 %     57.03 %     55.56 %     54.51 %     53.31 %

    1 – Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
    3 – Non-core expenses in 4Q23 included $6.3 million from early retirement and severance costs, $4.3 million from the FDIC special assessment, and $2.1 million from a lease termination.

    For more information, contact:
    Nicole M. Weaver, Vice President and Director of Corporate Administration
    765-521-7619
    http://www.firstmerchants.com

    SOURCE: First Merchants Corporation, Muncie, Indiana

    The MIL Network –

  • MIL-OSI: NANO Nuclear Energy to Work with Thermal Engineering International to Fabricate Primary and Secondary Heat Exchangers for its Portable ODIN Microreactor

    Source: GlobeNewswire (MIL-OSI)

    New York, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear energy and technology company focused on developing clean energy solutions, today announced that it has contracted with Thermal Engineering International (TEi), a Babcock Power Inc.® company, to advance the design and fabrication of several heat exchangers for use in NANO Nuclear’s proprietary, portable ODIN nuclear microreactor in development.

    TEi is a leading supplier of heat transfer technology to the electric power generation industry, designing and fabricating surface condensers, feedwater heaters, power plant heat exchangers and moisture separator reheaters for the world’s power generation industry continuously for over 100 years.

    “We are proud to support innovative SMR developers like NANO Nuclear with their heat exchange needs,” said Ken Murakoshi, President and CEO of Thermal Engineering International Inc. “TEi is excited to contribute to the successful deployment of NANO Nuclear’s ODIN transportable reactor and help advance clean, portable energy solutions for the future.”

    Under the terms of the contract, TEi will develop detailed designs for key heat exchanger technology integral to the ODIN microreactor. This includes the eventual fabrication of both primary and secondary heat exchangers. TEi will lead a broad, cross-functional initiative, drawing on its expertise to design practical heat transfer systems in collaboration with NANO Nuclear’s world-class technical team, from procurement to the eventual fabrication of the exchangers.

    “We are very pleased to take the next step in the development of the ODIN microreactor in tandem with TEi, who we believe have valuable expertise in this sector,” said James Walker, Chief Executive Officer and Head of Reactor Development of NANO Nuclear Energy. “The design and fabrication of heat exchangers will mark a critical milestone in ODIN’s development roadmap, and TEi is well-equipped to oversee this essential phase. By designing and fabricating these heat transfer technologies, we can advance our testing and demonstration efforts that will support our prototype construction, while equipping our world-class technical teams with data that can be broadly applied to our other reactors in development.”

    Figure 1 – NANO Nuclear Energy Inc. to Work with Thermal Engineering International to Design and Fabricate Key Enabling Heat Transfer Technology for Use in its ODIN Microreactor.

    “Collaborating with an industry-leading manufacturer on the design of our heat exchangers marks a major stride in advancing the plans for our portable ODIN microreactor,” said Prof. Eugene Shwageraus, Lead of Nuclear Reactor Engineering of NANO Nuclear Energy. “By having such a reputable industry partner for both primary and secondary exchanger designs, we can optimize performance while maintaining the highest safety standards and ensure that the reactor functions at the highest achievable efficiency. We believe this collaboration will help minimize developments risks going forward and ensure we meet performance benchmarks before advancing to full demonstration.”

    The heat transfer systems are essential components within NANO Nuclear’s innovative portable ODIN microreactor and their integration marks a significant milestone in advancing NANO Nuclear’s proprietary microreactor toward demonstration, regulatory licensing and eventual market introduction. This agreement builds on the work done by NANO Nuclear’s world-class technical team and follows last year’s external technical audit of the ODIN reactor by the Idaho National Laboratory, during which crucial design solutions and the system components were examined, reassuring the design development strategy.

    “Incorporating the heat exchangers into a compact system like ODIN marks a significant milestone in advancing our proprietary microreactor design” said Prof. Ian Farnan, Lead for Nuclear Fuel Cycle, Radiation and Materials at NANO Nuclear Energy. “TEi’s expertise is well known in designing these critical heat transfer solutions. Accelerating this aspect of the compact reactor design is vital for meeting our milestones and ensuring that the microreactor meets our operational requirements.”

    About NANO Nuclear Energy, Inc.

    NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

    Led by a world-class nuclear engineering team, NANO Nuclear’s reactor products in development include “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors. NANO Nuclear is also developing patented stationary KRONOS MMR™ Energy System and space focused, portable LOKI MMR™.

    Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

    HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

    NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

    For more corporate information please visit: https://NanoNuclearEnergy.com/

    For further NANO Nuclear information, please contact:
    Email: IR@NANONuclearEnergy.com
    Business Tel: (212) 634-9206

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    Cautionary Note Regarding Forward Looking Statements

    This news release and statements of NANO Nuclear’s management in connection with this news release contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. In this press release, forward-looking statements relate to, among other things, the anticipated benefits to NANO Nuclear of its relationship with Tei as described herein (including the potential for progressing the development, demonstration, regulatory licensing and commercial deployment of the ODIN microreactor). Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network –

  • MIL-OSI: Connectone Bancorp, Inc. Reports Fourth Quarter and Full-Year 2024 Results; Declares Common and Preferred Dividends

    Source: GlobeNewswire (MIL-OSI)

    ENGLEWOOD CLIFFS, N.J., Jan. 30, 2025 (GLOBE NEWSWIRE) — ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $18.9 million for the fourth quarter of 2024 compared with $15.7 million for the third quarter of 2024 and $17.8 million for the fourth quarter of 2023. Diluted earnings per share were $0.49 for the fourth quarter of 2024 compared with $0.41 for the third quarter of 2024 and $0.46 for the fourth quarter of 2023. Full-year 2024 net income available to common stockholders was $67.8 million, compared to $81.0 million for the full-year 2023. Diluted earnings per share for the full-year 2024 were $1.76, compared with $2.07 for the full-year 2023. Return on average assets was 0.84%, 0.70% and 0.79% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Return on average tangible common equity was 8.27%, 6.93% and 8.18% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    Operating net income available to common stockholders, which excludes non-operating items, as set forth in the reconciliation of GAAP earnings to operating earnings included in the supplemental table attached hereto, was $20.2 million for the fourth quarter of 2024, $16.1 million for the third quarter of 2024 and $19.1 million for the fourth quarter of 2023. Operating diluted earnings per share were $0.52 for the fourth quarter of 2024, $0.42 for the third quarter of 2024 and $0.49 for the fourth quarter of 2023. Operating return on average assets was 0.90%, 0.72% and 0.84% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Operating return on average tangible common equity was 8.77%, 7.03% and 8.67% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

    “I’m extremely pleased with ConnectOne’s fourth quarter 2024 financial results highlighted by a 20.5% quarter-over-quarter and an 6.2% year-over-year increase in quarterly net income available to common stockholders, significant margin expansion and growth in both loans and core deposits,” stated Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “On a quarter-over-quarter basis, our loan portfolio grew by 2.0% while core deposits grew by 3.2%. The bank’s net interest margin improved by nearly 20 basis-points, benefiting from a more than 25 basis-point improvement in our cost of deposits. This improvement reflects an approximately 40% cycle-to-date beta on interest-bearing deposits and a 3.6% sequential quarterly increase in average noninterest-bearing demand deposits. Moreover, credit quality trends remain stable and, once again, tangible book value advanced despite higher longer-term interest rates.”

    “As we move into 2025, we are experiencing strong operating momentum bolstered by improving industry fundamentals, favorable economic conditions, and a potentially more supportive regulatory environment. Importantly, the proposed merger with The First of Long Island Corporation is moving forward as planned. We’re well along in the merger process and anticipate the transaction to close in the second quarter of 2025.” Mr. Sorrentino added, “The strategic rationale behind this financially attractive transaction remains highly compelling, which will meaningfully enhance ConnectOne’s presence on Long Island and further our position as a premier New York Metro community bank. We are equally excited about the opportunity to serve The First of Long Island’s clients and to leverage the expertise of its team, creating a significantly enhanced platform for sustained growth at ConnectOne.”

    Mr. Sorrentino concluded “Looking ahead, we remain focused and committed to our client-first culture and relationship banking model and are well-positioned to grow and strengthen our valuable franchise.”

    Dividend Declarations

    The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on March 3, 2025, to common stockholders of record on February 18, 2025. A dividend of $0.328125 per depositary share, representing a 1/40th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on March 3, 2025 to holders of record on February 18, 2025.

    Operating Results

    Fully taxable equivalent net interest income for the fourth quarter of 2024 was $64.7 million, an increase of $3.8 million, or 6.3%, from the third quarter of 2024, due to a 19 basis-point widening of the net interest margin to 2.86% from 2.67%. Average loans for the fourth quarter of 2024 remained essentially flat from the sequential third quarter, decreasing by $19.8 million, or 0.2%. The widening of the net interest margin was primarily due to a 27 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, partially offset by a 3 basis-point decline in the rate earned on interest-earning assets. The interest-earning asset rate for the fourth quarter of 2024 was strengthened by an increase in loan prepayment fees and recapture of nonaccrual loan interest. Excluding these aforementioned items, management estimates the net interest margin for the quarter would have been approximately 2.82%. The net interest margin, excluding any non-operating items, is expected to increase to more than 2.90% in the first quarter of 2025 as a result of further improvement in the cost of funds and the deployment of excess cash-on-hand.

    Fully taxable equivalent net interest income for the fourth quarter of 2024 increased by $3.0 million, or 4.7%, from the fourth quarter of 2023. The increase from the fourth quarter of 2023 resulted primarily from a 15 basis-point widening in the net interest margin to 2.86% from 2.71%, partially offset by a $164.7 million, or 2.0%, decrease in average loans. The widening of the net interest margin for the fourth quarter of 2024 when compared to the fourth quarter of 2023 was primarily due to a 102 basis-point decrease in the average cost of borrowings, a 9 basis-point decrease in average cost of deposits, including noninterest-bearing deposits, and a 3 basis-point increase in the loan portfolio yield, partially offset by an increase in average cash balances during the fourth quarter of 2024.

    Noninterest income was $3.7 million in the fourth quarter of 2024, $4.7 million in the third quarter of 2024 and $4.2 million in the fourth quarter of 2023. The $1.0 million decrease in noninterest income for the fourth quarter of 2024 when compared to the third quarter of 2024 was due to a $0.7 million decrease in net gains on equity securities, a $0.5 million decrease in BOLI income, primarily due to reduced death benefits, partially offset by a $0.2 million increase in net gains on sale of loans held-for-sale. The $0.5 million decrease in noninterest income for the fourth quarter of 2024 when compared to the fourth quarter of 2023 was due to a $0.9 million decrease in net gains on equity securities, partially offset a $0.3 million increase in other deposit, loan and other income and an increase in net gains on sale of loans held-for-sale of $0.1 million.

    Noninterest expenses were $38.5 million for the fourth quarter of 2024, $38.6 million for the third quarter of 2024 and $37.8 million for the fourth quarter of 2023. The $0.1 million decrease in noninterest expenses for the fourth quarter of 2024 when compared to the third quarter of 2024 was primarily due to a $0.7 million decrease in salaries and employee benefits, a $0.2 million decrease in other expenses, a $0.1 million decrease in marketing and advertising expenses and a $0.1 million decrease in occupancy and equipment expense, partially offset by a $0.5 million charge related to a branch closing, a $0.3 million increase in professional and consulting expenses, a $0.1 million increase in merger expenses and a $0.1 million increase in information and technology communications.

    The $0.7 million increase in noninterest expenses for the fourth quarter of 2024 when compared to the fourth quarter of 2023 was primarily due to a $0.9 million increase merger expenses, a $0.9 million increase in professional and consulting expenses, a $0.5 million increase in branch closing expenses, a $0.4 million increase in information technology and communications, a $0.2 million increase in salaries and employee benefits, a $0.1 million increase in marketing and advertising expenses and a $0.1 million increase in occupancy and equipment expenses, partially offset by decreases in FDIC insurance of $2.1 million and $0.3 million decrease in other expenses. The $0.9 million increase in merger expenses compared to the fourth quarter of 2023 was due to the planned merger with The First of Long Island Corporation. The $0.9 million increase in professional and consulting expenses was primarily due to increases in legal and audit accruals, as well as an increase in loan work-out expenses. The $0.5 million increase in branch closing expenses is due to the aforementioned branch closing. The $2.1 million decrease in FDIC insurance expense is due to the FDIC special assessment charge that was accrued during the fourth quarter of 2023.

    Income tax expense was $6.1 million for the fourth quarter of 2024, $6.0 million for the third quarter of 2024 and $6.2 million for the fourth quarter of 2023. The effective tax rates for the fourth quarter of 2024, third quarter of 2024 and fourth quarter of 2023 were 23%, 26% and 24%, respectively. The effective tax rate for the fourth quarter reflects a year-end adjustment for the effective tax rate for the full-year 2024. Our projected tax rate for 2025 is in the range of 26%-27%.

    Asset Quality

    The provision for credit losses was $3.5 million for the fourth quarter of 2024, $3.8 million for the third quarter of 2024 and $2.7 million for the fourth quarter of 2023, reflecting loan growth, economic outlook and specific reserves. The provision for credit losses was $13.8 million for the full-year 2024 compared to $8.2 million for the full-year 2023. The increase in the full-year 2024 provision for credit losses when compared to the full-year 2023 was primarily due to increases in specific reserves, partially offset by a decrease in the level of general reserves.

    Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), was $57.3 million as of December 31, 2024, $51.3 million as of September 30, 2024 and $52.5 million as of December 31, 2023. Nonperforming assets as a percentage of total assets was 0.58% as of December 31, 2024, 0.53% as of September 31, 2024 and 0.53% as of December 31, 2023. The ratio of nonaccrual loans to loans receivable was 0.69%, 0.63% and 0.63%, as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The annualized net loan charge-offs ratio was 0.16% for the fourth quarter of 2024, 0.17% for the third quarter of 2024 and 0.43% for the fourth quarter of 2023. The allowance for credit losses represented 1.00%, 1.02%, and 0.98% of loans receivable as of December 31, 2024, September 31, 2024, and December 31, 2023, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 144.3% as of December 31, 2024, 160.8% as of September 30, 2024 and 156.1% as of December 31, 2023. Criticized and classified loans as a percentage of loans receivable was 2.66% as of December 31, 2024, up from 2.23% as of September 30, 2024 and 1.35% as of December 31, 2023. Loans delinquent 30 to 89 days was 0.04% of loans receivable as of December 31, 2024, down from 0.16% as of September 30, 2024 and 0.30% as of December 31, 2023. The overall credit quality metrics of the Bank’s loan portfolio remain sound, with expected levels of charge-offs, nonaccruals, delinquencies, and classified loans expected to remain within historical ranges.

    Selected Balance Sheet Items

    The Company’s total assets were $9.880 billion as of December 31, 2024, compared to $9.856 billion as of December 31, 2023. Loans receivable were $8.275 billion as of December 31, 2024 and $8.345 billion as of December 31, 2023. Total deposits were $7.820 billion as of December 31, 2024 and $7.536 billion as of December 31, 2023.

    The Company’s total stockholders’ equity was $1.242 billion as of December 31, 2024 and $1.217 billion as of December 31, 2023. The increase in total stockholders’ equity was primarily due to an increase in retained earnings of $40.5 million, partially offset by an increase in accumulated other comprehensive losses of approximately $12.7 million and an increase in treasury stock of approximately $5.8 million. As of December 31, 2024, the Company’s tangible common equity ratio and tangible book value per share were 9.49% and $23.92, respectively, compared to 9.25% and $23.14, respectively, as of December 31, 2023. Total goodwill and other intangible assets were $213.0 million as of December 31, 2024, and $214.2 million as of December 31, 2023.

    Use of Non-GAAP Financial Measures

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

    Fourth Quarter 2024 Results Conference Call

    Management will also host a conference call and audio webcast at 10:00 a.m. ET on January 30, 2025 to review the Company’s financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 1691400. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the “Investor Relations” link on the Company’s website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

    A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, January 30, 2025 and ending on Thursday, February 6, 2025 by dialing 1 (609) 800-9909, access code 1691400. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

    About ConnectOne Bancorp, Inc.

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

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

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

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

             
    CONNECTONE BANCORP, INC. AND SUBSIDIARIES        
    CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION      
    (in thousands)        
             
      December 31,   December 31,  
        2024       2023    
      (unaudited)      
    ASSETS        
    Cash and due from banks $ 57,816     $ 61,421    
    Interest-bearing deposits with banks   298,672       181,293    
    Cash and cash equivalents   356,488       242,714    
             
    Investment securities   612,847       617,162    
    Equity securities   20,092       18,564    
             
    Loans held-for-sale   743       –    
             
    Loans receivable   8,274,810       8,345,145    
    Less: Allowance for credit losses – loans   82,685       81,974    
    Net loans receivable   8,192,125       8,263,171    
             
    Investment in restricted stock, at cost   40,449       51,457    
    Bank premises and equipment, net   28,447       30,779    
    Accrued interest receivable   45,498       49,108    
    Bank owned life insurance   243,672       237,644    
    Right of use operating lease assets   14,489       12,007    
    Goodwill   208,372       208,372    
    Core deposit intangibles   4,639       5,874    
    Other assets   111,739       118,751    
    Total assets $ 9,879,600     $ 9,855,603    
             
    LIABILITIES        
    Deposits:        
    Noninterest-bearing $ 1,422,044     $ 1,259,364    
    Interest-bearing   6,398,070       6,276,838    
    Total deposits   7,820,114       7,536,202    
    Borrowings   688,064       933,579    
    Subordinated debentures, net   79,944       79,439    
    Operating lease liabilities   15,498       13,171    
    Other liabilities   34,276       76,592    
    Total liabilities   8,637,896       8,638,983    
             
    COMMITMENTS AND CONTINGENCIES        
             
    STOCKHOLDERS’ EQUITY        
    Preferred stock   110,927       110,927    
    Common stock   586,946       586,946    
    Additional paid-in capital   36,347       33,182    
    Retained earnings   631,446       590,970    
    Treasury stock   (76,116 )     (70,296 )  
    Accumulated other comprehensive loss   (47,846 )     (35,109 )  
    Total stockholders’ equity   1,241,704       1,216,620    
    Total liabilities and stockholders’ equity $ 9,879,600     $ 9,855,603    
             
                     
    CONNECTONE BANCORP, INC. AND SUBSIDIARIES                
    CONSOLIDATED STATEMENTS OF INCOME                
    (dollars in thousands, except for per share data)                
                     
      Three Months Ended Year Ended  
      12/31/24   12/31/23   12/31/24   12/31/23  
    Interest income                
    Interest and fees on loans $ 118,346     $ 120,636   $ 477,859   $ 453,992    
    Interest and dividends on investment securities:                
    Taxable   4,804       4,280     18,561     16,666    
    Tax-exempt   1,109       1,166     4,503     4,641    
    Dividends   959       912     4,349     3,662    
    Interest on federal funds sold and other short-term investments   2,815       1,963     12,617     11,104    
    Total interest income   128,033       128,957     517,889     490,065    
    Interest expense                
    Deposits   58,568       59,332     244,846     206,176    
    Borrowings   4,754       7,803     25,706     28,783    
    Total interest expense   63,322       67,135     270,552     234,959    
                     
    Net interest income   64,711       61,822     247,337     255,106    
    Provision for credit losses   3,500       2,700     13,800     8,200    
    Net interest income after provision for credit losses   61,211       59,122     233,537     246,906    
                     
    Noninterest income                
    Deposit, loan and other income   1,798       1,545     6,861     6,098    
    Income on bank owned life insurance   1,656       1,635     7,142     6,316    
    Net gains on sale of loans held-for-sale   597       472     2,723     1,704    
    Net losses (gains) on equity securities   (307 )     557     2     (117 )  
    Total noninterest income   3,744       4,209     16,728     14,001    
                     
    Noninterest expenses                
    Salaries and employee benefits   22,244       22,010     90,053     88,223    
    Occupancy and equipment   2,818       2,708     11,615     10,884    
    FDIC insurance   1,800       3,900     7,200     8,365    
    Professional and consulting   2,449       1,587     8,447     7,547    
    Marketing and advertising   495       323     2,420     1,965    
    Information technology and communications   4,523       4,148     17,574     14,340    
    Merger expenses   863       –     1,605     –    
    Branch closing expenses   477       –     477     –    
    Amortization of core deposit intangibles   296       348     1,235     1,438    
    Other expenses   2,533       2,821     11,172     11,187    
    Total noninterest expenses   38,498       37,845     151,798     143,949    
                     
    Income before income tax expense   26,457       25,486     98,467     116,958    
    Income tax expense   6,086       6,213     24,674     29,955    
    Net income   20,371       19,273     73,793     87,003    
    Preferred dividends   1,509       1,509     6,036     6,036    
    Net income available to common stockholders $ 18,862     $ 17,764   $ 67,757   $ 80,967    
                     
    Earnings per common share:                
    Basic $ 0.49     $ 0.46   $ 1.77   $ 2.08    
    Diluted   0.49       0.46     1.76     2.07    
                                 
         
    ConnectOne’s management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.    
                           
    CONNECTONE BANCORP, INC.                     
    SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES                     
                           
      As of    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
    Selected Financial Data (dollars in thousands)    
    Total assets $ 9,879,600     $ 9,639,603     $ 9,723,731     $ 9,853,964     $ 9,855,603      
    Loans receivable:                      
    Commercial $ 1,522,308     $ 1,505,743     $ 1,491,079     $ 1,561,063     $ 1,564,768      
    Commercial real estate   3,384,319       3,261,160       3,274,941       3,333,488       3,342,603      
    Multifamily   2,506,782       2,482,258       2,499,581       2,507,893       2,566,904      
    Commercial construction   616,246       616,087       639,168       646,593       620,496      
    Residential   249,691       250,249       256,786       254,214       256,041      
    Consumer   1,136       835       945       850       1,029      
    Gross loans   8,280,482       8,116,332       8,162,500       8,304,101       8,351,841      
    Net deferred loan fees   (5,672 )     (4,356 )     (4,597 )     (6,144 )     (6,696 )    
    Loans receivable   8,274,810       8,111,976       8,157,903       8,297,957       8,345,145      
    Loans held-for-sale   743       –       435       –       –      
    Total loans $ 8,275,553     $ 8,111,976     $ 8,158,338     $ 8,297,957     $ 8,345,145      
                           
    Investment and equity securities $ 632,939     $ 667,112     $ 640,322     $ 638,854     $ 635,726      
    Goodwill and other intangible assets   213,011       213,307       213,604       213,925       214,246      
    Deposits:                      
    Noninterest-bearing demand $ 1,422,044     $ 1,262,568     $ 1,268,882     $ 1,290,523     $ 1,259,364      
    Time deposits   2,557,200       2,614,187       2,593,165       2,623,391       2,531,371      
    Other interest-bearing deposits   3,840,870       3,647,350       3,713,967       3,674,740       3,745,467      
    Total deposits $ 7,820,114     $ 7,524,105     $ 7,576,014     $ 7,588,654     $ 7,536,202      
                           
    Borrowings $ 688,064     $ 742,133     $ 756,144     $ 877,568     $ 933,579      
    Subordinated debentures (net of debt issuance costs)   79,944       79,818       79,692       79,566       79,439      
    Total stockholders’ equity   1,241,704       1,239,496       1,224,227       1,216,609       1,216,620      
                           
    Quarterly Average Balances                      
    Total assets $ 9,653,446     $ 9,742,853     $ 9,745,853     $ 9,860,753     $ 9,690,746      
    Loans receivable:                      
    Commercial $ 1,487,850     $ 1,485,777     $ 1,517,446     $ 1,552,360     $ 1,510,634      
    Commercial real estate (including multifamily)   5,733,188       5,752,467       5,789,498       5,890,853       5,874,854      
    Commercial construction   631,022       628,740       652,227       637,993       630,468      
    Residential   250,589       252,975       254,284       252,965       253,200      
    Consumer   5,204       7,887       5,155       5,091       6,006      
    Gross loans   8,107,853       8,127,846       8,218,610       8,339,262       8,275,162      
    Net deferred loan fees   (4,727 )     (4,513 )     (5,954 )     (6,533 )     (6,894 )    
    Loans receivable   8,103,126       8,123,333       8,212,656       8,332,729       8,268,268      
    Loans held-for-sale   498       83       169       99       31      
    Total loans $ 8,103,624     $ 8,123,416     $ 8,212,825     $ 8,332,828     $ 8,268,299      
                           
    Investment and equity securities $ 653,988     $ 650,897     $ 637,551     $ 633,270     $ 602,287      
    Goodwill and other intangible assets   213,205       213,502       213,813       214,133       214,472      
    Deposits:                      
    Noninterest-bearing demand $ 1,304,699     $ 1,259,912     $ 1,256,251     $ 1,254,201     $ 1,248,132      
    Time deposits   2,478,163       2,625,329       2,587,706       2,567,767       2,495,091      
    Other interest-bearing deposits   3,838,575       3,747,427       3,721,167       3,696,374       3,747,093      
    Total deposits $ 7,621,437     $ 7,632,668     $ 7,565,124     $ 7,518,342     $ 7,490,316      
                           
    Borrowings $ 648,300     $ 717,586     $ 787,256     $ 947,003     $ 823,123      
    Subordinated debentures (net of debt issuance costs)   79,862       79,735       79,609       79,483       79,356      
    Total stockholders’ equity   1,241,738       1,234,724       1,220,621       1,220,818       1,198,389      
                           
      Three Months Ended    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
      (dollars in thousands, except for per share data)    
    Net interest income $ 64,711     $ 60,887     $ 61,439     $ 60,300     $ 61,822      
    Provision for credit losses   3,500       3,800       2,500       4,000       2,700      
    Net interest income after provision for credit losses   61,211       57,087       58,939       56,300       59,122      
    Noninterest income                      
    Deposit, loan and other income   1,798       1,817       1,654       1,592       1,545      
    Income on bank owned life insurance   1,656       2,145       1,677       1,664       1,635      
    Net gains on sale of loans held-for-sale   597       343       1,277       506       472      
    Net (losses) gains on equity securities   (307 )     432       (209 )     86       557      
    Total noninterest income   3,744       4,737       4,399       3,848       4,209      
    Noninterest expenses                      
    Salaries and employee benefits   22,244       22,957       22,721       22,131       22,010      
    Occupancy and equipment   2,818       2,889       2,899       3,009       2,708      
    FDIC insurance   1,800       1,800       1,800       1,800       3,900      
    Professional and consulting   2,449       2,147       1,923       1,928       1,587      
    Marketing and advertising   495       635       613       677       323      
    Information technology and communications   4,523       4,464       4,198       4,389       4,148      
    Merger expenses   863       742       –       –       –      
    Branch closing expenses   477       –       –       –       –      
    Amortization of core deposit intangible   296       297       321       321       348      
    Other expenses   2,533       2,710       3,119       2,810       2,821      
    Total noninterest expenses   38,498       38,641       37,594       37,065       37,845      
                           
    Income before income tax expense   26,457       23,183       25,744       23,083       25,486      
    Income tax expense   6,086       6,022       6,688       5,878       6,213      
    Net income   20,371       17,161       19,056       17,205       19,273      
    Preferred dividends   1,509       1,509       1,509       1,509       1,509      
    Net income available to common stockholders $ 18,862     $ 15,652     $ 17,547     $ 15,696     $ 17,764      
                           
    Weighted average diluted common shares outstanding   38,519,581       38,525,484       38,448,594       38,511,747       38,651,391      
    Diluted EPS $ 0.49     $ 0.41     $ 0.46     $ 0.41     $ 0.46      
                           
    Reconciliation of GAAP Net Income to Operating Net Income:                      
    Net income $ 20,371     $ 17,161     $ 19,056     $ 17,205     $ 19,273      
    FDIC special assessment   –       –       –       –       2,100      
    Merger expenses   863       742       –       –       –      
    Branch closing expenses   477       –       –       –       –      
    Amortization of core deposit intangibles   296       297       321       321       348      
    Net losses (gains) on equity securities   307       (432 )     209       (86 )     (557 )    
    Tax impact of adjustments   (585 )     (171 )     (149 )     (66 )     (569 )    
    Operating net income $ 21,729     $ 17,597     $ 19,437     $ 17,374     $ 20,595      
    Preferred dividends   1,509       1,509       1,509       1,509       1,509      
    Operating net income available to common stockholders $ 20,220     $ 16,088     $ 17,928     $ 15,865     $ 19,086      
                           
    Operating diluted EPS (non-GAAP) (1) $ 0.52     $ 0.42     $ 0.47     $ 0.41     $ 0.49      
                           
    Return on Assets Measures                      
    Average assets $ 9,653,446     $ 9,742,853     $ 9,745,853     $ 9,860,753     $ 9,690,746      
    Return on avg. assets   0.84   %   0.70   %   0.79   %   0.70   %   0.79   %  
    Operating return on avg. assets (non-GAAP) (2)   0.90       0.72       0.80       0.71       0.84      
                           
    (1) Operating net income available to common stockholders divided by weighted average diluted shares outstanding.              
    (2) Operating net income divided by average assets.              
                           
      Three Months Ended    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
    Return on Equity Measures (dollars in thousands)    
    Average stockholders’ equity $ 1,241,738     $ 1,234,724     $ 1,220,621     $ 1,220,818     $ 1,198,389      
    Less: average preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )    
    Average common equity $ 1,130,811     $ 1,123,797     $ 1,109,694     $ 1,109,891     $ 1,087,462      
    Less: average intangible assets   (213,205 )     (213,502 )     (213,813 )     (214,133 )     (214,472 )    
    Average tangible common equity $ 917,606     $ 910,295     $ 895,881     $ 895,758     $ 872,990      
    Return on avg. common equity (GAAP)   6.64   %   5.54   %   6.36   %   5.69   %   6.48   %  
    Operating return on avg. common equity (non-GAAP) (3)   7.11       5.70       6.50       5.75       6.96      
    Return on avg. tangible common equity (non-GAAP) (4)   8.27       6.93       7.98       7.15       8.18      
    Operating return on avg. tangible common equity (non-GAAP) (5)   8.77       7.03       8.05       7.12       8.67      
                           
    Efficiency Measures                      
    Total noninterest expenses $ 38,498     $ 38,641     $ 37,594     $ 37,065     $ 37,845      
    FDIC special assessment   –       –       –       –       (2,100 )    
    Merger expenses   (863 )     (742 )     –       –       –      
    Branch closing expenses   (477 )     –       –       –       –      
    Amortization of core deposit intangibles   (296 )     (297 )     (321 )     (321 )     (348 )    
    Operating noninterest expense $ 36,862     $ 37,602     $ 37,273     $ 36,744     $ 35,397      
                           
    Net interest income (tax equivalent basis) $ 65,593     $ 61,710     $ 62,255     $ 61,111     $ 62,627      
    Noninterest income   3,744       4,737       4,399       3,848       4,209      
    Net losses (gains) on equity securities   307       (432 )     209       (86 )     (557 )    
    Operating revenue $ 69,644     $ 66,015     $ 66,863     $ 64,873     $ 66,279      
                           
    Operating efficiency ratio (non-GAAP) (6)   52.9   %   57.0   %   55.7   %   56.6   %   53.4   %  
                           
    Net Interest Margin                      
    Average interest-earning assets $ 9,117,201     $ 9,206,038     $ 9,210,050     $ 9,323,291     $ 9,172,165      
    Net interest income (tax equivalent basis)   65,593       61,710       62,255       61,111       62,627      
    Net interest margin (GAAP)   2.86   %   2.67   %   2.72   %   2.64   %   2.71   %  
                           
    (3) Operating net income available to common stockholders divided by average common equity.        
    (4) Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.        
    (5) Operating net income available to common stockholders, divided by average tangible common equity.        
    (6) Operating noninterest expense divided by operating revenue.        
                           
      As of    
      Dec. 31,   Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,    
        2024       2024       2024       2024       2023      
    Capital Ratios and Book Value per Share (dollars in thousands, except for per share data)    
    Stockholders equity $ 1,241,704     $ 1,239,496     $ 1,224,227     $ 1,216,609     $ 1,216,620      
    Less: preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )    
    Common equity $ 1,130,777     $ 1,128,569     $ 1,113,300     $ 1,105,682     $ 1,105,693      
    Less: intangible assets   (213,011 )     (213,307 )     (213,604 )     (213,925 )     (214,246 )    
    Tangible common equity $ 917,766     $ 915,262     $ 899,696     $ 891,757     $ 891,447      
                           
    Total assets $ 9,879,600     $ 9,639,603     $ 9,723,731     $ 9,853,964     $ 9,855,603      
    Less: intangible assets   (213,011 )     (213,307 )     (213,604 )     (213,925 )     (214,246 )    
    Tangible assets $ 9,666,589     $ 9,426,296     $ 9,510,127     $ 9,640,039     $ 9,641,357      
                           
    Common shares outstanding   38,370,317       38,368,217       38,365,069       38,333,053       38,519,770      
                           
    Common equity ratio (GAAP)   11.45   %   11.71   %   11.45   %   11.22   %   11.22   %  
    Tangible common equity ratio (non-GAAP) (7)   9.49       9.71       9.46       9.25       9.25      
                           
    Regulatory capital ratios (Bancorp):                      
    Leverage ratio   11.33   %   11.10   %   10.97   %   10.73   %   10.86   %  
    Common equity Tier 1 risk-based ratio   10.97       11.07       10.90       10.70       10.62      
    Risk-based Tier 1 capital ratio   12.29       12.42       12.25       12.03       11.95      
    Risk-based total capital ratio   14.11       14.29       14.10       13.88       13.77      
                           
    Regulatory capital ratios (Bank):                      
    Leverage ratio   11.66   %   11.43   %   11.29   %   11.10   %   11.20   %  
    Common equity Tier 1 risk-based ratio   12.63       12.79       12.60       12.43       12.31      
    Risk-based Tier 1 capital ratio   12.63       12.79       12.60       12.43       12.31      
    Risk-based total capital ratio   13.60       13.77       13.58       13.41       13.28      
                           
    Book value per share (GAAP) $ 29.47     $ 29.41     $ 29.02     $ 28.84     $ 28.70      
    Tangible book value per share (non-GAAP) (8)   23.92       23.85       23.45       23.26       23.14      
                           
    Net Loan Charge-offs (Recoveries):                      
    Net loan charge-offs (recoveries):                      
    Charge-offs $ 3,363     $ 3,559     $ 3,595     $ 3,185     $ 8,960      
    Recoveries   (29 )     (53 )     (324 )     (23 )     –      
    Net loan charge-offs $ 3,334     $ 3,506     $ 3,271     $ 3,162     $ 8,960      
    Net loan charge-offs as a % of average loans receivable (annualized)   0.16   %   0.17   %   0.16   %   0.15   %   0.43   %  
                           
    Asset Quality                      
    Nonaccrual loans $ 57,310     $ 51,300     $ 46,026     $ 47,438     $ 52,524      
    Other real estate owned   –       –       –       –       –      
    Nonperforming assets $ 57,310     $ 51,300     $ 46,026     $ 47,438     $ 52,524      
                           
    Allowance for credit losses – loans (“ACL”) $ 82,685     $ 82,494     $ 82,077     $ 82,869     $ 81,974      
    Loans receivable   8,274,810       8,111,976       8,157,903       8,297,957       8,345,145      
                           
    Nonaccrual loans as a % of loans receivable   0.69   %   0.63   %   0.56   %   0.57   %   0.63   %  
    Nonperforming assets as a % of total assets   0.58       0.53       0.47       0.48       0.53      
    ACL as a % of loans receivable   1.00       1.02       1.01       1.00       0.98      
    ACL as a % of nonaccrual loans   144.3       160.8       178.3       174.7       156.1      
                           
    (7) Tangible common equity divided by tangible assets                
    (8) Tangible common equity divided by common shares outstanding at period-end                
                           
                                   
    CONNECTONE BANCORP, INC.                              
    NET INTEREST MARGIN ANALYSIS                              
    (dollars in thousands)                                
                                         
            For the Quarter Ended    
            December 31, 2024 September 30, 2024 December 31, 2023
            Average         Average         Average        
    Interest-earning assets:   Balance Interest Rate (7)   Balance Interest Rate (7)   Balance Interest Rate (7)
    Investment securities (1) (2) $ 736,131   $ 6,207   3.35 %   $ 736,946   $ 6,157   3.32 %   $ 723,433   $ 5,757   3.16 %  
    Loans receivable and loans held-for-sale (2) (3) (4)   8,103,624     118,934   5.84       8,123,416     119,805   5.87       8,268,299     121,130   5.81    
    Federal funds sold and interest-                              
    bearing deposits with banks   238,957     2,815   4.69       304,009     4,056   5.31       134,168     1,963   5.80    
    Restricted investment in bank stock   38,489     959   9.91       41,667     1,048   10.01       46,265     912   7.82    
    Total interest-earning assets   9,117,201     128,915   5.63       9,206,038     131,066   5.66       9,172,165     129,762   5.61    
    Allowance for credit losses   (83,938 )           (83,355 )           (88,861 )        
    Noninterest-earning assets     620,183             620,170             607,442          
    Total assets     $ 9,653,446           $ 9,742,853           $ 9,690,746          
                                         
    Interest-bearing liabilities:                              
    Time deposits     $ 2,478,163     27,374   4.39     $ 2,625,329     30,245   4.58     $ 2,495,091     26,486   4.21    
    Other interest-bearing deposits   3,838,575     31,194   3.23       3,747,427     33,540   3.56       3,747,093     32,846   3.48    
    Total interest-bearing deposits   6,316,738     58,568   3.69       6,372,756     63,785   3.98       6,242,184     59,332   3.77    
                                         
    Borrowings       648,300     3,430   2.10       717,586     4,239   2.35       823,123     6,467   3.12    
    Subordinated debentures, net   79,862     1,305   6.50       79,735     1,312   6.55       79,356     1,313   6.56    
    Finance lease       1,280     19   5.91       1,349     20   5.90       1,546     23   5.90    
    Total interest-bearing liabilities   7,046,180     63,322   3.58       7,171,426     69,356   3.85       7,146,209     67,135   3.73    
                                         
    Noninterest-bearing demand deposits   1,304,699             1,259,912             1,248,132          
    Other liabilities       60,829             76,791             98,016          
    Total noninterest-bearing liabilities   1,365,528             1,336,703             1,346,148          
    Stockholders’ equity     1,241,738             1,234,724             1,198,389          
    Total liabilities and stockholders’ equity $ 9,653,446           $ 9,742,853           $ 9,690,746          
                                         
    Net interest income (tax equivalent basis)     65,593             61,710             62,627        
    Net interest spread (5)       2.05 %       1.82 %       1.89 %  
                                         
    Net interest margin (6)       2.86 %       2.67 %       2.71 %  
                                         
    Tax equivalent adjustment       (882 )           (823 )           (805 )      
    Net interest income     $ 64,711           $ 60,887           $ 61,822        
                                         
    (1) Average balances are calculated on amortized cost.              
    (2) Interest income is presented on a tax equivalent basis using 21% federal tax rate.              
    (3) Includes loan fee income.              
    (4) Loans include nonaccrual loans.              
    (5) Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities and is presented on a tax equivalent basis.              
    (6) Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.               
    (7) Rates are annualized.              
                                         

    The MIL Network –

  • MIL-OSI: Grayscale Launches Grayscale® Bitcoin Miners ETF (Ticker: MNRS)

    Source: GlobeNewswire (MIL-OSI)

    STAMFORD, Conn., Jan. 30, 2025 (GLOBE NEWSWIRE) — Grayscale, an asset management firm with extensive experience in crypto investing, today announced the launch of Grayscale® Bitcoin Miners ETF (Ticker: MNRS) (the “Fund”).

    Grayscale® Bitcoin Miners ETF is Grayscale’s latest exchange-traded product offering investors exposure to Bitcoin miners and the Bitcoin mining ecosystem. The Fund specifically invests in companies that comprise the Indxx Bitcoin Miners Index, a proprietary index designed to measure the performance of global Bitcoin mining companies that generate the majority of their revenue from Bitcoin mining activities or mining-related hardware, software, services, and/or projects.

    The Bitcoin mining industry is crucial for maintaining the Bitcoin network’s transparency and long-term security and the new Fund offers investors a way to gain exposure to companies supporting this mining ecosystem. This can be appealing to those seeking an alternative to direct Bitcoin investment, as well as to those who lack access or are not yet ready to invest directly in Bitcoin or digital assets but still want exposure to companies that, we believe are correlated to Bitcoin’s price in a familiar ETF wrapper.

    “Grayscale® Bitcoin Miners ETF offers investors targeted exposure to Bitcoin Miners and the global Bitcoin Mining industry in a passively managed, rules-based, and index-tracked fund designed to evolve with the industry,” said David LaValle, Global Head of ETFs at Grayscale. “Bitcoin Miners, the backbone of the network, are well-positioned for significant growth as Bitcoin adoption and usage increases, making MNRS an appealing option for a diverse range of investors.”

    For more information about MNRS, please visit: https://etfs.grayscale.com/mnrs

    Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (8CC)-775-0313 or visit our website at etfs.grayscale.com/mnrs. Read the prospectus or summary prospectus carefully before investing.

    Investing involves risk and possible loss of principal. Shares of ETFs may trade at a premium or discount to their net asset value.

    The Fund will not invest in digital assets directly or through the use of derivatives. The Fund also will not invest in initial coin offerings. The Fund may, however, have indirect exposure to digital assets by virtue of its investments in companies that use one or more digital assets as part of their business activities or that hold digital assets as proprietary investments. Because the Fund will not invest directly in any digital assets, it will not track price movements of any digital assets.

    MNRS is distributed by Foreside Fund Services, LLC and Grayscale Advisors, LLC is the adviser.

    About Grayscale

    Grayscale Operating, LLC (“GSO”) enables investors to access the digital economy through a family of future-forward investment products. Founded in 2013, GSO has a decade-long track record and deep expertise as an asset management firm focused on crypto investing. Investors, advisors, and allocators turn to Grayscale for single asset, diversified, and thematic exposure. For more information, please follow @Grayscale or visit grayscale.com. GSO is the parent company of Grayscale Advisors, LLC.

    Media Contact

    press@grayscale.com

    Client Contact

    866-775-0313

    info@grayscale.com

    The MIL Network –

  • MIL-OSI: FirstCash Reports Record Fourth Quarter and Full-Year Operating Results; Accelerating Pawn Demand Drives Record Revenue & Earnings; Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, Jan. 30, 2025 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions, today announced operating results for the fourth quarter and full-year ended December 31, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid on February 28, 2025.

    Mr. Rick Wessel, chief executive officer, stated, “FirstCash posted record fourth quarter and full year revenues and earnings primarily fueled by exceptionally strong pawn operating results. Same-store pawn receivables increased 12% in both the U.S. and Latin America (local currency basis) compared to last year. This marked the sixth consecutive quarter of double digit same-store pawn receivable growth in the U.S. The POS payment solutions segment (“AFF”) had solid profitability as well, and posted growth in transaction volumes and door counts for the quarter and year-to-date periods.

    “A total of 16 pawn stores were added in the fourth quarter, including an acquisition of 10 stores coupled with six new store openings. For the full year, 99 pawn stores were opened or acquired, boosting the total store base to 3,026 locations. FirstCash’s cash flows and balance sheet remain strong and we believe that we are well positioned to fund further anticipated store growth in 2025 along with dividends and potential share buybacks.”

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

        Three Months Ended December 31,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $               883,811   $ 852,134   $               883,811   $ 852,134
    Net income   $                 83,547   $ 69,589   $                 95,415   $ 92,846
    Diluted earnings per share   $                     1.86   $ 1.53   $                     2.12   $ 2.04
    EBITDA (non-GAAP measure)   $               162,636   $ 145,493   $               165,685   $ 161,704
    Weighted-average diluted shares                       45,038     45,425                       45,038     45,425
     
        Twelve Months Ended December 31,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $           3,388,514   $ 3,151,796   $           3,388,514   $ 3,151,796
    Net income   $               258,815   $ 219,301   $               302,680   $ 276,874
    Diluted earnings per share   $                     5.73   $ 4.80   $                     6.70   $ 6.06
    EBITDA (non-GAAP measure)   $               551,008   $ 493,784   $               558,437   $ 511,732
    Weighted-average diluted shares                       45,168     45,693                       45,168     45,693
     

    Consolidated Operating Highlights

    • Gross revenues totaled a record $3.4 billion in 2024, an increase of 8% on both a GAAP and constant currency basis compared to last year. Revenues totaled $884 million in the fourth quarter, an increase of 4% on a GAAP basis and 7% on a constant currency basis compared to the prior-year quarter.
    • Diluted earnings per share for 2024 increased 19% over last year on a GAAP basis while adjusted diluted earnings per share increased 11% compared to the prior year. For the fourth quarter, diluted earnings per share increased 22% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 4% compared to the prior-year quarter. These results were even more impressive in light of lower foreign currency exchange rates, which reduced 2024 earnings per share by approximately $0.06 for the fourth quarter and $0.04 for the full year compared to the prior-year periods.
    • Record net income for 2024 totaled $259 million on a GAAP basis while adjusted net income was a record $303 million, which represented increases of 18% and 9%, respectively, over the prior year.
    • Adjusted EBITDA for the full year was $558 million, an increase of $47 million, or 9%, compared to the prior year.

    Store Base and Platform Growth

    • Pawn Stores – 16 pawn locations were added in Mexico during the fourth quarter, consisting of ten acquired stores and six de novo stores. For the full year, a total of 99 pawn locations were added, including 29 stores in the U.S. and 70 stores in Latin America.

      As of December 31, 2024, the Company had 3,026 locations, comprised of 1,200 U.S. locations and 1,826 locations in Latin America.

    • Retail POS Payment Solutions (AFF) Merchant Partnerships – As of December 31, 2024, there were approximately 13,600 active retail and e-commerce merchant partner locations, representing a 17% increase in the number of active merchant locations compared to a year ago. Excluding certain furniture locations closed due to bankruptcies, the number of active doors increased over 25%.

    U.S. Pawn Segment Operating Results

    • Fourth quarter 2024 segment pre-tax operating income was $112 million, an increase of $13 million, or 14%, compared to the prior-year quarter. The resulting segment pre-tax operating margin remained strong at 26% for the quarter.
    • Full year 2024 segment pre-tax operating income was $397 million, an increase of $61 million, or 18%, compared to the prior year. The resulting segment pre-tax operating margin was 25% for the full year, which equaled the prior year.
    • Pawn receivables grew significantly over the course of the fourth quarter, totaling almost $400 million by year end and increasing 15% compared to the prior year. The increase in total pawn receivables was driven by a 5% increase in the year-to-date weighted-average store count coupled with an impressive 12% same-store increase. On a two-year stacked basis, same-store pawn receivables were up 26%.
    • Pawn loan fees increased 11% for the fourth quarter and 16% for the full year, while on a same-store basis, pawn loan fee revenue increased 9% and 11% compared to both of the respective prior-year periods.
    • Retail merchandise sales increased 10% in the fourth quarter and 13% for the full year compared to the respective prior-year periods. Same-store retail sales increased 6% for both the quarter and full year compared to the respective prior-year periods, as the Company saw continued retail demand from value-conscious consumers.
    • Retail sales margins improved to a robust 43% in the fourth quarter compared to 42% in the prior-year quarter. Full year retail margins were 42% in 2024 compared to 43% in 2023.
    • Annualized inventory turnover was consistent at 2.8 times for both 2024 and 2023. Inventories aged greater than one year at December 31, 2024 remained extremely low at 1% of total inventories.
    • Operating expenses for the fourth quarter and full year increased 10% and 12%, respectively, as compared to the prior-year periods, primarily due to store additions and increased labor and variable compensation expenses. On a same-store basis, expenses increased 7% for the quarter and 5% for the full year compared to the respective prior-year periods. 

    Latin America Pawn Segment Operating Results

    Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the fourth quarter of 2024 was 20.1 pesos / dollar, an unfavorable change of 14% versus the comparable prior-year period, and for the twelve-month period ended December 31, 2024 was 18.3 pesos / dollar, an unfavorable change of 3% versus the prior-year period.

    • While fourth quarter segment pre-tax operating income decreased 4% on a U.S. dollar basis compared to last year, it increased 7% on a constant currency basis. The resulting segment pre-tax operating margin was 20% for both the fourth quarter of 2024 and 2023.
    • For the full year of 2024, segment pre-tax operating income decreased 4% on a U.S. dollar basis compared to the prior year and decreased 2% on a constant currency basis. The resulting segment pre-tax operating margin was 19%, equaling the prior year.
    • While pawn receivables at December 31, 2024 decreased 5% on a U.S. dollar basis, they increased 13% on a constant currency basis compared to the prior year. On a same-store basis, pawn receivables decreased 6% on a U.S. dollar basis but increased 12% on a constant currency basis compared to the prior year.
    • While total and same-store pawn loan fees in the fourth quarter decreased 3% in U.S. dollars, they increased 10% on a constant currency basis compared to the prior-year quarter. For the full year, both total and same-store pawn loan fees increased 4%, or 7% on a constant currency basis, compared to the prior year.
    • Although retail merchandise sales in the fourth quarter of 2024 decreased 5% compared to the prior-year quarter, they increased 7% on a constant currency basis. Same-store retail merchandise sales in the fourth quarter of 2024 decreased 6% on a U.S. dollar basis while increasing 7% on a constant currency basis compared to the prior-year quarter. For the full year, retail merchandise sales increased 2%, or 4% on a constant currency basis, compared to the prior year, while same-store retail merchandise sales increased 1%, or 4% on a constant currency basis, compared to the prior year.
    • Retail margins were 34% for the fourth quarter of 2024 and 35% for the full year, both similar to prior-period results. Annualized inventory turnover was 4.2 times in 2024 versus 4.4 times in 2023, while inventories aged greater than one year at December 31, 2024 remained extremely low at 1%.
    • Operating expenses for the fourth quarter of 2024 decreased 5% in total but increased 7% on a constant currency basis compared to the prior-year quarter while full year operating expenses increased 7%, or 9% on a constant currency basis compared to last year. The increase in constant currency expenses from all stores reflected increased store counts and higher labor costs (due primarily to further increases in the federal minimum wage and other mandated benefit programs), along with other inflationary impacts.

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

    • Fourth quarter segment pre-tax operating income totaled $39 million, a decrease of 10% compared to the prior-year quarter. The anticipated decline in earnings was reflective of lower net revenue from its furniture vertical, partially offset by strong growth in non-furniture net revenues.
    • For the full year, segment pre-tax operating income remained strong at $129 million, a nominal decrease of 3% over the prior year.
    • Segment revenues for the quarter, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, decreased 1% compared to the prior-year quarter. Revenues for the full year increased 3% compared to the prior year.
    • Gross transaction volume of lease and loan originations during the fourth quarter increased $12 million, or 4%, compared to last year, driven primarily by the 17% increase in active merchant door counts and continued growth in non-furniture verticals. Excluding furniture, fourth quarter origination volume increased approximately 36%. For the full year, overall gross transaction volume increased 5% over the prior year and was up 27%, excluding furniture.
    • Combined gross leased merchandise and finance receivables outstanding at December 31, 2024 decreased 1% compared to the December 31, 2023 balances.
    • The combined lease and loan loss provision as a percentage of the total gross transaction volume originated was 29% for both 2024 and 2023. The resulting allowance on combined leased merchandise and finance receivables at December 31, 2024 was 42% compared to 40% in the prior year.
    • The average monthly net charge-off (“NCO”) rate for combined leased merchandise and finance receivable products for the full year 2024 was 5.3% compared to the prior-year rate of 5.0%, and was in line with the Company’s targeted range for NCO’s.

    Cash Flow and Liquidity

    • Each of the Company’s three business segments generated significant operating cash flows in 2024. Consolidated operating cash flows for the full year grew 30% and totaled $540 million compared to $416 million in 2023.
    • Adjusted free cash flows (a non-GAAP measure) increased 24% to $262 million in 2024, compared to $212 million in the prior year.
    • The operating cash flows helped fund significant growth in earning assets and continued investments in the pawn store platform with a nominal increase in net debt.  Key investments made in 2024 included:
      • Pawn earning assets (pawn receivables and inventories) increased $69 million.
      • A total of 38 pawn stores were acquired for a combined cash purchase price of $76 million. 
      • 61 new, or de novo, pawn stores were added for a total investment of $19 million in fixed assets and working capital.
      • Real estate purchases totaling $86 million as the Company purchased the underlying real estate at 58 of its existing pawn stores, bringing the number of Company-owned properties to 400 locations.
    • Net debt at December 31, 2024 was $1.6 billion, a modest 5% increase over the prior year. Over $1.5 billion of the Company’s long-term financing remains fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032.
    • The Company’s net debt to adjusted EBITDA ratio was 2.8x at December 31, 2024.

    Shareholder Returns

    • The Board of Directors declared a $0.38 per share first quarter cash dividend, which will be paid on February 28, 2025 to stockholders of record as of February 14, 2025. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
    • During 2024, FirstCash repurchased $85 million of its common stock. The Company has $115 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
    • Combined shareholder payouts in the form of cash dividends and stock repurchases were over $150 million in 2024 and have totaled almost $800 million over the last five years.
    • The Company generated a 13% return on equity and a 6% return on assets in 2024. Using adjusted net income for 2024, the adjusted return on equity was 15% while the adjusted return on assets was 7%.

    2025 Outlook

    The Company’s outlook for 2025 is highly positive given the continued growth in pawn receivables and expectations for further pawn store additions and AFF merchant partner growth. Anticipated conditions and trends for 2025 include the following:

    Pawn Operations:

    • Pawn operations will continue to be the primary earnings driver, as the Company expects the contribution from the combined U.S. and Latin America pawn segments to be approximately 85% of total segment level pre-tax income for 2025.
    • The Company expects further growth in the pawn store base in 2025 through a combination of new store openings and potential acquisitions. Over the last five years, the Company has added an average of 115 new and acquired stores per year. The guidance presented below does not assume any material acquisition activity.

    U.S. Pawn

    • U.S. Pawn is anticipated to contribute approximately 65% of total segment level pre-tax income for 2025.
    • Same-store pawn loans began 2025 up 12% compared to a year ago, with January balances to date up similarly. Given the strength of the 2024 same-store results, growth rates are expected to moderate slightly over the course of the year, but still result in strong pawn fee growth that is expected to be in a range of 8% to 11% for the full year. 
    • Similar retail sales growth is projected for 2025, with retail margins expected to be in a normalized range targeted at approximately 42%.
    • Given the strong revenue momentum coupled with modest expense growth, the Company anticipates solid double-digit segment earnings growth in 2025 from this, its largest segment.

    Latin America Pawn

    • LatAm Pawn is anticipated to contribute approximately 20% of total segment level pre-tax income for 2025.
    • U.S. dollar-reported results for Latin America in 2025 are expected to be impacted by the lower exchange rate for the Mexican peso, which has most recently been in a range 20 to 21 pesos per U.S. dollar compared to the average exchange rate of 18.3 to 1 in 2024.
    • Same-store pawn receivables began 2025 down 6% on a U.S. dollar basis but up 12% on a constant currency basis. Full year pawn fee growth is expected to remain in a range of 8% to 11% on a local currency basis while it is projected to be down in a range of 2% to 5% on a U.S. dollar basis, given the current exchange rate.
    • Retail sales in Latin America are also expected to track similarly to pawn fees in 2025 with consistent retail margins.
    • While operating expenses are expected to increase by 6% to 9% in Latin America on a local currency basis (given the enacted 10% increase in the Mexico minimum wage for 2025), expenses are anticipated to decline in a range of 3% to 6% on a U.S. dollar basis, which should dampen the overall currency impact on dollar-denominated segment earnings.

    Retail POS Payment Solutions (AFF) Operations:

    • AFF is anticipated to contribute approximately 15% of total segment level pre-tax income for 2025.
    • As a result of recent merchant partner bankruptcies in the furniture sector (Conn’s HomePlus and American Freight), the Company anticipates first half 2025 origination volume being down to the prior year, given lower expected furniture originations, which are more seasonally weighted to the income tax refund season. Despite this headwind, full year origination volume for 2025 is expected to increase in a low single digit range compared to 2024, given continued growth in door counts and originations from new and other existing merchants. Excluding originations from Conn’s HomePlus and American Freight, origination volumes are expected to increase in a range of 20% to 25% over 2024.
    • While full year 2025 net revenues are forecast to decline in a range of 10% to 15% compared to the prior year due to lower LTO balances and first half originations, reduced operating expenses related to the changes in product mix and other expense reduction initiatives are expected to offset much of the decrease in net revenue. Resulting full year segment pre-tax income is expected to be flat to down only slightly compared to the prior year.

    Tax Rates and Currency:

    • The full year 2025 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24% to 25%.
    • Each full point change in the exchange rate of the Mexican peso is projected to have an annual earnings impact of approximately $0.10 per share.

    Additional Commentary and Analysis

    Mr. Wessel further commented on FirstCash’s 2024 operating results and the outlook for 2025, “Our core pawn segments continue to see exceptional growth in pawn receivables, pawn fees and retail sales. Strong sequential acceleration in same-store pawn receivable growth rates during the fourth quarter resulted in end of year increases in pawn receivables of 15% in the U.S. and 13% (constant currency basis) in Latin America compared to last year. We believe this growth continues to be driven by inflationary impacts and credit tightening for consumers with small, immediate cash needs. Furthermore, we saw excellent retail sales results in the fourth quarter, with same-store sales up 6% in the U.S. and 7% in LatAm (constant currency) compared to the prior-year quarter while maintaining strong gross margins, which we attribute to our deep value retail pricing, attractive interest-free layaway programs and excellent customer service.

    “Our industry-leading pawn operations were further expanded in 2024 as we added almost 100 locations through new store openings across all markets, coupled with strategic acquisitions in the U.S. and Mexico. Over the last five years, we have opened or acquired more than 550 pawn locations and we began 2025 with a strong pipeline of new store openings already in process. While most of our new store openings will continue to be in Latin America, we currently have three store openings slated for growth markets in the U.S. Additionally, we continue to see accretive acquisition opportunities in multiple markets which can be funded from available cash and credit facilities.

    “While a smaller component of FirstCash’s consolidated operations, AFF posted solid results in 2024 by contributing almost $130 million in segment earnings and generating meaningful cash flow. Although this was a difficult year in the retail furniture industry, given weak sales volumes and store closings at several retailers of size, AFF posted overall origination growth in 2024, driven by successful expansion in other vertical categories and its strong field sales channel.

    “We began 2025 in a strong position to again deliver meaningful earnings growth with the current momentum in our core pawn business in both the U.S. and Latin America and opportunities for additional growth through pawnshop acquisitions and de novo store openings. AFF’s prospects remain positive as well, as it continues to grow and diversify its merchant base. On a consolidated basis, our strong cash flows and balance sheet position us well to support this growth, and combined with ongoing cash dividends and potential share repurchases, are expected to drive further shareholder returns,” concluded Mr. Wessel.

    About FirstCash

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

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

    Forward-Looking Information     

    This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2025. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

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

    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (unaudited, in thousands)
     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,
        2024   2023   2024   2023
    Revenue:                
    Retail merchandise sales   $      413,671     $ 397,412     $ 1,507,096     $ 1,381,272  
    Pawn loan fees            189,984       178,238              737,126       658,536  
    Leased merchandise income            177,440       190,057              766,241       752,682  
    Interest and fees on finance receivables              70,507       59,571              245,891       233,818  
    Wholesale scrap jewelry sales              32,209       26,856              132,160       125,488  
    Total revenue            883,811       852,134           3,388,514       3,151,796  
                     
    Cost of revenue:                
    Cost of retail merchandise sold            249,831       241,402              909,685       832,393  
    Depreciation of leased merchandise              97,937       103,631              433,306       411,455  
    Provision for lease losses              33,561       34,184              163,395       175,858  
    Provision for loan losses              41,736       32,459              143,827       123,030  
    Cost of wholesale scrap jewelry sold              27,058       22,809              108,769       101,821  
    Total cost of revenue            450,123       434,485           1,758,982       1,644,557  
                     
    Net revenue            433,688       417,649           1,629,532       1,507,239  
                     
    Expenses and other income:                
    Operating expenses            226,547       216,783              900,978       832,149  
    Administrative expenses              43,636       51,887              173,199       176,315  
    Depreciation and amortization              26,434       27,635              104,941       109,161  
    Interest expense              27,197       26,586              105,226       93,243  
    Interest income                  (528 )     (216 )              (1,935 )     (1,469 )
    Loss (gain) on foreign exchange                    508       376                  2,641       (1,529 )
    Merger and acquisition expenses                      42       4,252                  2,228       7,922  
    Other expenses (income), net                    319       (1,142 )                  (522 )     (1,402 )
    Total expenses and other income            324,155       326,161           1,286,756       1,214,390  
                     
    Income before income taxes            109,533       91,488              342,776       292,849  
                     
    Provision for income taxes              25,986       21,899                83,961       73,548  
                     
    Net income   $        83,547     $ 69,589     $      258,815     $ 219,301  
     
    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands)
     
        December 31,
        2024   2023
    ASSETS        
    Cash and cash equivalents   $            175,095     $ 127,018  
    Accounts receivable, net                     73,325       71,922  
    Pawn loans                   517,867       471,846  
    Finance receivables, net                   147,501       113,901  
    Inventories                   334,580       312,089  
    Leased merchandise, net                   128,437       171,191  
    Prepaid expenses and other current assets                     26,943       38,634  
    Total current assets               1,403,748       1,306,601  
             
    Property and equipment, net                   717,916       632,724  
    Operating lease right of use asset                   324,646       328,458  
    Goodwill               1,787,172       1,727,652  
    Intangible assets, net                   228,858       277,724  
    Other assets                       9,934       10,242  
    Deferred tax assets, net                       4,712       6,514  
    Total assets   $         4,476,986     $ 4,289,915  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Accounts payable and accrued liabilities   $            171,540     $ 163,050  
    Customer deposits and prepayments                     72,703       70,580  
    Lease liability, current                     95,161       101,962  
    Total current liabilities                   339,404       335,592  
             
    Revolving unsecured credit facilities                   198,000       568,000  
    Senior unsecured notes               1,531,346       1,037,647  
    Deferred tax liabilities, net                   128,574       136,773  
    Lease liability, non-current                   225,498       215,485  
    Total liabilities               2,422,822       2,293,497  
             
    Stockholders’ equity:        
    Common stock                          575       573  
    Additional paid-in capital               1,767,569       1,741,046  
    Retained earnings               1,411,083       1,218,029  
    Accumulated other comprehensive loss                 (129,596 )     (43,037 )
    Common stock held in treasury, at cost                 (995,467 )     (920,193 )
    Total stockholders’ equity               2,054,164       1,996,418  
    Total liabilities and stockholders’ equity   $         4,476,986     $ 4,289,915  
     
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS
    (UNAUDITED)
     
    U.S. Pawn Operating Results and Margins (dollars in thousands)
     
        Three Months Ended        
        December 31,    
        2024   2023   Increase
    Revenue:                    
    Retail merchandise sales   $             267,251     $ 243,697       10 %  
    Pawn loan fees                 133,563       120,083       11 %  
    Wholesale scrap jewelry sales                   23,201       17,463       33 %  
    Total revenue                 424,015       381,243       11 %  
                         
    Cost of revenue:                    
    Cost of retail merchandise sold                 153,641       141,406       9 %  
    Cost of wholesale scrap jewelry sold                   19,755       14,941       32 %  
    Total cost of revenue                 173,396       156,347       11 %  
                         
    Net revenue                 250,619       224,896       11 %  
                         
    Segment expenses:                    
    Operating expenses                 131,439       119,627       10 %  
    Depreciation and amortization                     7,371       6,799       8 %  
    Total segment expenses                 138,810       126,426       10 %  
                         
    Segment pre-tax operating income   $             111,809     $ 98,470       14 %  
                         
    Operating metrics:                    
    Retail merchandise sales margin   43 %   42 %        
    Net revenue margin   59 %   59 %        
    Segment pre-tax operating margin   26 %   26 %        
     
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
        Twelve Months Ended        
        December 31,    
        2024   2023   Increase
    Revenue:                    
    Retail merchandise sales   $             969,371     $ 854,190       13 %  
    Pawn loan fees                 505,262       435,762       16 %  
    Wholesale scrap jewelry sales                   93,923       78,571       20 %  
    Total revenue             1,568,556       1,368,523       15 %  
                         
    Cost of revenue:                    
    Cost of retail merchandise sold                 560,970       490,544       14 %  
    Cost of wholesale scrap jewelry sold                   77,683       64,545       20 %  
    Total cost of revenue                 638,653       555,089       15 %  
                         
    Net revenue                 929,903       813,434       14 %  
                         
    Segment expenses:                    
    Operating expenses                 503,630       451,543       12 %  
    Depreciation and amortization                   28,980       25,585       13 %  
    Total segment expenses                 532,610       477,128       12 %  
                         
    Segment pre-tax operating income   $             397,293     $ 336,306       18 %  
                         
    Operating metrics:                    
    Retail merchandise sales margin   42 %   43 %        
    Net revenue margin   59 %   59 %        
    Segment pre-tax operating margin   25 %   25 %        
     
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
        As of December 31,    
        2024   2023   Increase
    Earning assets:                    
    Pawn loans   $      396,667     $ 344,152       15 %  
    Inventories          245,492       221,843       11 %  
        $      642,159     $ 565,995       13 %  
                         
    Average outstanding pawn loan amount (in ones)   $              283     $ 258       10 %  
                         
    Composition of pawn collateral:                    
    General merchandise   28 %   30 %        
    Jewelry   72 %   70 %        
        100 %   100 %        
                         
    Composition of inventories:                    
    General merchandise   41 %   43 %        
    Jewelry   59 %   57 %        
        100 %   100 %        
                         
    Percentage of inventory aged greater than one year   1 %   1 %        
                         
    Inventory turnover (trailing twelve months cost of merchandise sales divided by average inventories)   2.8 times   2.8 times        
     

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

    Latin America Pawn Segment Results

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

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

                            Constant Currency Basis
                            Three Months        
                      Ended        
        Three Months Ended           December 31,   Increase /
        December 31,       2024   (Decrease)
        2024   2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                                
    Retail merchandise sales   $        147,412     $ 155,310       (5) %   $            166,927       7 %  
    Pawn loan fees              56,421       58,155       (3) %                     63,893       10 %  
    Wholesale scrap jewelry sales                9,008       9,393       (4) %                       9,008       (4) %  
    Total revenue            212,841       222,858       (4) %                   239,828       8 %  
                                     
    Cost of revenue:                                
    Cost of retail merchandise sold              96,718       100,870       (4) %                   109,445       9 %  
    Cost of wholesale scrap jewelry sold                7,303       7,868       (7) %                       8,278       5 %  
    Total cost of revenue            104,021       108,738       (4) %                   117,723       8 %  
                                     
    Net revenue            108,820       114,120       (5) %                   122,105       7 %  
                                     
    Segment expenses:                                
    Operating expenses              60,918       63,976       (5) %                     68,628       7 %  
    Depreciation and amortization                5,170       5,466       (5) %                       5,754       5 %  
    Total segment expenses              66,088       69,442       (5) %                     74,382       7 %  
                                     
    Segment pre-tax operating income   $          42,732     $ 44,678       (4) %   $              47,723       7 %  
                                     
    Operating metrics:                                
    Retail merchandise sales margin   34 %   35 %         34 %        
    Net revenue margin   51 %   51 %         51 %        
    Segment pre-tax operating margin   20 %   20 %         20 %        
     
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
                          Constant Currency Basis
                    Twelve Months    
                    Ended    
        Twelve Months Ended         December 31,   Increase /
        December 31,   Increase / 2024   (Decrease)
        2024   2023   (Decrease) (Non-GAAP)   (Non-GAAP)
    Revenue:                              
    Retail merchandise sales   $        541,787     $ 533,612       2 %   $              556,686       4 %  
    Pawn loan fees            231,864       222,774       4 %                     238,305       7 %  
    Wholesale scrap jewelry sales              38,237       46,917       (19) %                       38,237       (19) %  
    Total revenue            811,888       803,303       1 %                     833,228       4 %  
                                   
    Cost of revenue:                              
    Cost of retail merchandise sold            350,906       345,309       2 %                     360,452       4 %  
    Cost of wholesale scrap jewelry sold              31,086       37,276       (17) %                       31,977       (14) %  
    Total cost of revenue            381,992       382,585       — %                     392,429       3 %  
                                   
    Net revenue            429,896       420,718       2 %                     440,799       5 %  
                                   
    Segment expenses:                              
    Operating expenses            259,307       243,146       7 %                     266,102       9 %  
    Depreciation and amortization              20,369       21,350       (5) %                       20,855       (2) %  
    Total segment expenses            279,676       264,496       6 %                     286,957       8 %  
                                   
    Segment pre-tax operating income   $        150,220     $ 156,222       (4) %   $              153,842       (2) %  
                                   
    Operating metrics:                              
    Retail merchandise sales margin   35 %   35 %         35 %        
    Net revenue margin   53 %   52 %         53 %        
    Segment pre-tax operating margin   19 %   19 %         18 %        
     
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
                            Constant Currency Basis
                            As of        
                            December 31,    
        As of December 31,       2024   Increase
        2024   2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Earning assets:                                
    Pawn loans   $       121,200     $ 127,694       (5) %   $           143,805     13 %  
    Inventories             89,088       90,246       (1) %                 105,686     17 %  
        $       210,288     $ 217,940       (4) %   $           249,491     14 %  
                                     
    Average outstanding pawn loan amount  (in ones)   $                 87     $ 95       (8) %   $                   103     8 %  
                                     
    Composition of pawn collateral:                                
    General merchandise   58 %   63 %                    
    Jewelry   42 %   37 %                    
        100 %   100 %                    
                                     
    Composition of inventories:                                
    General merchandise   65 %   67 %                    
    Jewelry   35 %   33 %                    
        100 %   100 %                    
                                     
    Percentage of inventory aged greater than one year   1 %   1 %                    
                                     
    Inventory turnover (trailing twelve months cost of merchandise sales divided by average inventories)   4.2 times   4.4 times                    
     
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS
    (UNAUDITED)
     
    Retail POS Payment Solutions Operating Results (dollars in thousands)
     
        Three Months Ended        
        December 31,   Increase /
        2024   2023   (Decrease)
    Revenue:                
    Leased merchandise income   $               177,440   $ 190,057     (7) %  
    Interest and fees on finance receivables                       70,507     59,571     18 %  
    Total revenue                     247,947     249,628     (1) %  
                     
    Cost of revenue:                
    Depreciation of leased merchandise                       98,266     104,114     (6) %  
    Provision for lease losses                       33,665     35,564     (5) %  
    Provision for loan losses                       41,736     32,459     29 %  
    Total cost of revenue                     173,667     172,137     1 %  
                     
    Net revenue                       74,280     77,491     (4) %  
                     
    Segment expenses:                
    Operating expenses                       34,190     33,180     3 %  
    Depreciation and amortization                             705     772     (9) %  
    Total segment expenses                       34,895     33,952     3 %  
                     
    Segment pre-tax operating income   $                 39,385   $ 43,539     (10) %  
     
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
        Twelve Months Ended        
        December 31,   Increase /
        2024   2023   (Decrease)
    Revenue:                
    Leased merchandise income   $               766,241   $ 752,682     2 %  
    Interest and fees on finance receivables                     245,891     233,818     5 %  
    Total revenue                  1,012,132     986,500     3 %  
                     
    Cost of revenue:                
    Depreciation of leased merchandise                     434,915     413,546     5 %  
    Provision for lease losses                     163,937     177,418     (8) %  
    Provision for loan losses                     143,827     123,030     17 %  
    Total cost of revenue                     742,679     713,994     4 %  
                     
    Net revenue                     269,453     272,506     (1) %  
                     
    Segment expenses:                
    Operating expenses                     138,041     137,460     — %  
    Depreciation and amortization                         2,783     3,030     (8) %  
    Total segment expenses                     140,824     140,490     — %  
                     
    Segment pre-tax operating income   $               128,629   $ 132,016     (3) %  
     
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)
     
        Three Months Ended      
        December 31, Increase /
        2024   2023   (Decrease)
    Leased merchandise   $          124,590   $ 170,278     (27) %  
    Finance receivables                 159,898     102,279     56 %  
    Total gross transaction volume   $          284,488   $ 272,557     4 %  
     
        Twelve Months Ended      
        December 31, Increase /
        2024   2023   (Decrease)
    Leased merchandise   $          568,635   $ 623,069     (9) %  
    Finance receivables                 510,231     405,765     26 %  
    Total gross transaction volume   $       1,078,866   $ 1,028,834     5 %  
     

    Retail POS Payment Solutions Earning Assets (dollars in thousands)

        As of December 31,   Increase /
        2024     2023     (Decrease)
    Leased merchandise, net:                
    Leased merchandise, before allowance for lease losses   $          209,333     $ 267,458       (22) %  
    Less allowance for lease losses                 (80,661 )     (95,752 )     (16) %  
    Leased merchandise, net   $          128,672     $ 171,706       (25) %  
                     
    Finance receivables, net:                
    Finance receivables, before allowance for loan losses   $          264,506     $ 210,355       26 %  
    Less allowance for loan losses               (117,005 )     (96,454 )     21 %  
    Finance receivables, net   $          147,501     $ 113,901       29 %  
     
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)
               
        Three Months Ended      
        December 31,   Increase /
        2024   2023   (Decrease)
    Allowance for lease losses:              
    Balance at beginning of period   $                 93,823     $ 105,472     (11) %  
    Provision for lease losses                       33,665       35,564     (5) %  
    Charge-offs                     (48,607 )     (46,986 )   3 %  
    Recoveries                         1,780       1,702     5 %  
    Balance at end of period   $                 80,661     $ 95,752     (16) %  
                   
    Leased merchandise portfolio metrics:              
    Provision rate (1)   27 %   21 %      
    Average monthly net charge-off rate (2)   7.1 %   5.8 %      
    Delinquency rate (3)   24.4 %   21.7 %      
                   
    Allowance for loan losses:              
    Balance at beginning of period   $               109,197     $ 96,684     13 %  
    Provision for loan losses                       41,736       32,459     29 %  
    Charge-offs                     (35,751 )     (34,680 )   3 %  
    Recoveries                         1,823       1,991     (8) %  
    Balance at end of period   $               117,005     $ 96,454     21 %  
                   
    Finance receivables portfolio metrics:              
    Provision rate (1)   26 %   32 %      
    Average monthly net charge-off rate (2)   4.5 %   5.2 %      
    Delinquency rate (3)   20.0 %   21.8 %      
                       
    (1)        Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.         
                       
    (2)        Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.         
                       
    (3)        Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).         
     
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Twelve Months Ended        
        December 31,       Increase /
        2024   2023   (Decrease)
    Allowance for lease losses:                
    Balance at beginning of period   $                 95,752     $ 79,576       20 %  
    Provision for lease losses                     163,937       177,418       (8) %  
    Charge-offs                   (186,123 )     (167,952 )     11 %  
    Recoveries                         7,095       6,710       6 %  
    Balance at end of period   $                 80,661     $ 95,752       (16) %  
                     
    Leased merchandise portfolio metrics:                
    Provision rate (1) 29 %   28 %        
    Average monthly net charge-off rate (2) 6.3 %   5.4 %        
    Delinquency rate (3) 24.4 %   21.7 %        
                     
    Allowance for loan losses:                
    Balance at beginning of period   $                 96,454     $ 84,833       14 %  
    Provision for loan losses                     143,827       123,030       17 %  
    Charge-offs                   (130,812 )     (117,961 )     11 %  
    Recoveries                         7,536       6,552       15 %  
    Balance at end of period   $               117,005     $ 96,454       21 %  
                     
    Finance receivables portfolio metrics:                
    Provision rate (1) 28 %   30 %        
    Average monthly net charge-off rate (2) 4.3 %   4.7 %        
    Delinquency rate (3) 20.0 %   21.8 %        
     
    (1)        Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
     
    (2)        Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
     
    (3)        Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).
     

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

    Pawn Operations

    As of December 31, 2024, the Company operated 3,026 pawn store locations comprised of 1,200 stores in 29 U.S. states and the District of Columbia, 1,725 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

    The following tables detail pawn store count activity for the three and twelve months ended December 31, 2024:

        Three Months Ended December 31, 2024
        U.S.   Latin America   Total
    Total locations, beginning of period   1,201     1,824     3,025  
    New locations opened   —     6     6  
    Locations acquired   —     10     10  
    Consolidation of existing pawn locations (1)   (1 )   (14 )   (15 )
    Total locations, end of period   1,200     1,826     3,026  
                 
                 
        Twelve Months Ended December 31, 2024
        U.S.   Latin America   Total
    Total locations, beginning of period   1,183     1,814     2,997  
    New locations opened   1     60     61  
    Locations acquired   28     10     38  
    Consolidation of existing pawn locations (1) (2)   (12 )   (58 )   (70 )
    Total locations, end of period   1,200     1,826     3,026  
     

    (1)        Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

    (2)        Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023, which the Company elected to consolidate with other stores in this market. The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

    Retail POS Payment Solutions

    As of December 31, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,600 active retail merchant partner locations, which is net of the closing of approximately 1,000 Conn’s HomePlus and American Freight locations due to bankruptcy during the fourth quarter of 2024. This compares to the active door count of approximately 11,600 locations at December 31, 2023. 

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

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

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

    The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (1) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (2) to improve comparability of current periods presented with prior periods.

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

    Adjusted Net Income and Adjusted Diluted Earnings Per Share

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

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

        Three Months Ended December 31,   Twelve Months Ended December 31,
        2024   2023   2024   2023   2024   2023   2024   2023
        In
    Thousands    		   In
    Thousands    		   Per
    Share    		   Per
    Share    		   In
    Thousands    		   In
    Thousands    		   Per
    Share    		   Per
    Share
    Net income and diluted earnings per share, as reported   $      83,547   $ 69,589     $      1.86   $ 1.53     $    258,815   $ 219,301     $      5.73   $ 4.80  
    Adjustments, net of tax:                                
    Merger and acquisition expenses                    31     3,271                 —     0.07                1,706     6,089              0.04     0.13  
    Non-cash foreign currency loss (gain) related to lease liability                  504     (607 )            0.01     (0.01 )              2,627     (1,778 )            0.06     (0.04 )
    AFF purchase accounting and other adjustments              9,572     21,472              0.21     0.47              38,289     54,341              0.85     1.19  
    Other expenses (income), net              1,761     (879 )            0.04     (0.02 )              1,243     (1,079 )            0.02     (0.02 )
    Adjusted net income and diluted earnings per share   $      95,415   $ 92,846     $      2.12   $ 2.04     $    302,680   $ 276,874     $      6.70   $ 6.06  
     

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

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

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

        Three Months Ended   Twelve Months Ended
        December 31,   December 31,
        2024   2023   2024   2023
    Net income   $         83,547     $ 69,589     $       258,815     $ 219,301  
    Income taxes             25,986       21,899               83,961       73,548  
    Depreciation and amortization             26,434       27,635             104,941       109,161  
    Interest expense             27,197       26,586             105,226       93,243  
    Interest income                (528 )     (216 )             (1,935 )     (1,469 )
    EBITDA           162,636       145,493             551,008       493,784  
    Adjustments:                        
    Merger and acquisition expenses                     42       4,252                 2,228       7,922  
    Non-cash foreign currency loss (gain) related to lease liability                  720       (867 )               3,755       (2,540 )
    AFF purchase accounting and other adjustments (1)                     —       13,968                       —       13,968  
    Other expenses (income), net               2,287       (1,142 )               1,446       (1,402 )
    Adjusted EBITDA   $       165,685     $ 161,704     $       558,437     $ 511,732  
     

    (1)        For the three and twelve months ended December 31, 2023, amount represents other non-recurring costs included in administrative expenses related to a discontinued finance product.

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

    Free Cash Flow and Adjusted Free Cash Flow

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

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

        Three Months Ended   Twelve Months Ended
        December 31,   December 31,
        2024   2023   2024   2023
    Cash flow from operating activities   $        198,149     $ 99,105     $        539,958     $ 416,142  
    Cash flow from investing activities:                
    Pawn loans, net (1)                 (2,276 )     24,448                 (71,999 )     (34,978 )
    Finance receivables, net               (53,128 )     (27,448 )            (139,314 )     (115,442 )
    Purchases of furniture, fixtures, equipment and improvements               (12,213 )     (13,425 )               (68,245 )     (60,148 )
    Free cash flow              130,532       82,680                260,400       205,574  
    Merger and acquisition expenses paid, net of tax benefit                        31       3,271                     1,706       6,089  
    Adjusted free cash flow   $        130,563     $ 85,951     $        262,106     $ 211,663  
     

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

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

    Adjusted Return on Equity and Adjusted Return on Assets

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

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

        Twelve Months Ended
        December 31, 2024
    Adjusted net income (1)   $ 302,680  
           
    Average stockholders’ equity (average of five most recent quarter-end balances)   $ 2,014,721  
    Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)   15 %
           
    Average total assets (average of five most recent quarter-end balances)   $ 4,345,922  
    Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)   7 %
     
    (1)       See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.
     

    Constant Currency Results

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

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

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     
    Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso
     
        December 31,   Favorable /
        2024   2023   (Unfavorable)
    Mexican peso / U.S. dollar exchange rate:                
    End-of-period   20.3   16.9     (20) %  
    Three months ended   20.1   17.6     (14) %  
    Twelve months ended   18.3   17.8     (3) %  
                     
    Guatemalan quetzal / U.S. dollar exchange rate:                
    End-of-period   7.7   7.8     1 %  
    Three months ended   7.7   7.8     1 %  
    Twelve months ended   7.8   7.8     — %  
                     
    Colombian peso / U.S. dollar exchange rate:                
    End-of-period   4,409   3,822     (15) %  
    Three months ended   4,348   4,070     (7) %  
    Twelve months ended   4,071   4,328     6 %  
     

    FIRSTCASH HOLDINGS, INC.
    INTERSEGMENT TRANSACTIONS
    (UNAUDITED)

    Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. For the three months ended December 31, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $1.0 million and $1.6 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $266.3 million and $242.1 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $0.5 million and $0.9 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $153.1 million and $140.5 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $0.3 million and $0.5 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $97.9 million and $103.6 million, respectively.
    • Retail POS payment solutions provision for lease losses includes $0.1 million and $1.4 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $33.6 million and $34.2 million, respectively.

    For the twelve months ended December 31, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $4.1 million and $6.5 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $965.3 million and $847.7 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $2.2 million and $3.5 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $558.8 million and $487.1 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $1.6 million and $2.1 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $433.3 million and $411.5 million, respectively.
    • Retail POS payment solutions provision for lease losses includes $0.5 million and $1.6 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $163.4 million and $175.9 million, respectively.

    As of December 31, 2024 and 2023, these intersegment amounts are as follows:

    • Retail POS payment solutions leased merchandise, net includes $0.2 million and $0.5 million, respectively. Excluding these intersegment transactions, consolidated net leased merchandise totaled $128.4 million and $171.2 million, respectively.

    For further information, please contact: 
    Gar Jackson
    Global IR Group
    Phone:    (817) 886-6998
    Email:     gar@globalirgroup.com

    Doug Orr, Executive Vice President and Chief Financial Officer
    Phone:    (817) 258-2650
    Email:     investorrelations@firstcash.com
    Website:  investors.firstcash.com

    The MIL Network –

  • MIL-OSI: Check Point Software Reports Fourth Quarter and 2024 Full Year Results

    Source: GlobeNewswire (MIL-OSI)

    TEL AVIV, Israel, Jan. 30, 2025 (GLOBE NEWSWIRE) — Check Point® Software Technologies Ltd. (NASDAQ: CHKP), today announced its financial results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Highlights

    • Calculated Billings* reached $959 million, an 11 percent increase year over year
    • Remaining Performance Obligation (RPO)**: $2.5 billion, a 12 percent increase year over year
    • Total Revenues: $704 million, a 6 percent increase year over year
    • Product, License & Subscription Revenues: $463 million, a 9 percent increase year over year
    • GAAP Operating Income: $254 million, representing 36 percent of revenues
    • Non-GAAP Operating Income: $306 million, representing 44 percent of revenues
    • GAAP EPS: $2.30, a 7 percent increase year over year
    • Non-GAAP EPS: $2.70, a 5 percent increase year over year

    Full Year 2024 Highlights

    • Calculated Billings* reached $2,658 million, a 9 percent increase year over year
    • Total Revenues: $2,565 million, a 6 percent increase year over year
    • Security Subscriptions Revenues: $1,104 million, a 13 percent increase year over year
    • GAAP EPS: $7.46, a 5 percent increase year over year
    • Non-GAAP EPS: $9.16, a 9 percent increase year over year

    “We delivered exceptional fourth quarter results, a wonderful way to transition into my new Executive Chairman role. The success in the quarter was underscored by strong 8 percent revenue growth in our core Quantum Force appliance business, our industry leading Harmony E-mail solution, and expanded adoption of the Infinity platform,” said, Gil Shwed, Founder and Chairman of the Board of Check Point Software. “I would like to thank Check Point’s customers, partners, and the Global Check Point Team for their contributions to our continued success. I look forward to Check Point achieving new heights under the leadership of our new Chief Executive Officer, Nadav Zafrir,” concluded, Mr. Shwed.

    “I would like to thank Gil and the Board for the opportunity to lead such an exemplary organization. 2024 was a successful year and provides a great springboard for 2025 and beyond,” stated Nadav Zafrir, Chief Executive Officer of Check Point Software. “My first one hundred days are focused on meeting with customers and partners to understand the key challenges they face in today’s unprecedented threat environment. From my conversations so far, I have become increasingly confident that Check Point is uniquely positioned to address the cybersecurity demands of enterprises worldwide. Check Point’s future is bright, and we are focused on driving market share expansion and taking growth to the next levels,” stated Mr. Zafrir.

    “After a successful fourth quarter and 2024, we are starting 2025 with an expanded executive team to balance our corporate and Go-To-Market leadership roles, and bring even more attention to customer facing functions,” said Nadav Zafrir, CEO of Check Point Software. Among the new roles joining the executive team is that of Chief Revenue Officer. Itai Greenberg will serve in this role, driving our global top-line revenue across our platform worldwide. He brings more than two decades of experience in product management and sales roles, having most recently served as Check Point’s Chief Strategy Officer and head of the Cloud and SASE businesses. Replacing Itai in the role of Chief Strategy Officer, we welcome Roi Karo to Check Point. Roi brings more than two decades of expertise in security, AI, and big data with a focus on strategy and planning.

    In conclusion, after three successful years as Check Point’s President, Rupal Hollenbeck has chosen to conclude her tenure at the end of the first quarter and will remain available to support the smooth transition of the new executive team members. “I want to thank Rupal for her incredible work and dedication over the last three years during which the Go-To-Market organizations composition, reach, and focus was transformed all around the world. We wish her all the best in her future endeavors,” said Nadav Zafrir, CEO of Check Point Software. “We welcome Itai and Roi into their new executive team roles. I am excited about the opportunities before us, and I am more confident than ever that the best of Check Point is yet to come,” concluded, Mr. Zafrir.

    Financial Highlights Commentary

    • Cash Balances, Marketable Securities & Short-Term Deposits: $2,784 million as of December 31, 2024, compared to $2,960 million as of December 31, 2023. The decrease in cash is primarily a result of $186 million net of cash consideration utilized for Cyberint Ltd. acquisition in 2024.
    • Share Repurchase Program: During the fourth quarter of 2024, the company repurchased approximately 1.7 million shares at a total cost of approximately $325 million. During full year 2024, we repurchased approximately 7.7 million shares at a total cost of approximately $1,300 million.
    • Cash Flow: Cash flow from operations was $1,059, which included $18 million of costs related to our currency hedging transactions, and acquisition-related costs were insignificant. This compares to $1,035 million in 2023, which included $39 million of costs related to our currency hedging transactions and $25 million in costs related to acquisitions.

    For information regarding the non-GAAP financial measures discussed in this release, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures, please see “Use of Non-GAAP Financial Information” and “Reconciliation of GAAP to Non-GAAP Financial Information.”

    Conference Call and Webcast Information
    Check Point will host a conference call with the investment community on January 30, 2025, at 8:30 AM ET/5:30 AM PT. To listen to the live webcast or replay, please visit the website www.checkpoint.com/ir.
    First Quarter 2025 Investor Conference Participation Schedule

    • Wolfe Research March Madness 1×1 Conference
      February 27, 2025, NY, NY – 1×1 meetings
    • Susquehanna Technology Conference
      February 27, 2025, NY, NY – 1×1 meetings
    • Raymond James 2025 Institutional Investor Conference
      March 3, 2025, Orlando, FL – Fireside & 1×1 meetings
    • Morgan Stanley 2025 Media, Telecommunications & Technology Conference
      March 4, 2025, SF, CA – Fireside & 1×1 meetings
    • Roth Capital Partners 37thAnnual Conference
      March 17-18, 2025, Dana Point, CA – 1×1 meetings

    Members of Check Point’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Check Point’s conference presentations are expected to be available via webcast on the company’s web site. To hear these presentations and access the most updated information please visit the company’s web site at www.checkpoint.com/ir. The schedule is subject to change.

    Follow Check Point via:
    Twitter: http://www.twitter.com/checkpointsw
    Facebook: https://www.facebook.com/checkpointsoftware
    Blog: http://blog.checkpoint.com
    YouTube: http://www.youtube.com/user/CPGlobal
    LinkedIn: https://www.linkedin.com/company/check-point-software-technologies

    About Check Point Software Technologies Ltd.
    Check Point Software Technologies Ltd. (http://www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Core Services for collaborative security operations and services.

    Legal Notice Regarding Forward-Looking Statements
    This press release contains forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our management transitions, expectations regarding our products and solutions, and our participation in investor conferences and Check Point Experience (CPX) events and other events during the first quarter of 2025. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; customer acceptance and purchase of our existing solutions and new solutions; the market for IT security continuing to develop; competition from other products and services; appointments and departures of our executive officers; and general market, political, economic, and business conditions, including acts of terrorism or war. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2024. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.

    Use of Non-GAAP Financial Information
    In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Check Point uses non-GAAP measures of operating income, net income and earnings per diluted share, which are adjustments from results based on GAAP to exclude, as applicable, stock-based compensation expenses, amortization of intangible assets and acquisition related expenses and the related tax affects. Check Point’s management believes the non-GAAP financial information provided in this release is useful to investors’ understanding and assessment of Check Point’s ongoing core operations and prospects for the future. Historically, Check Point has also publicly presented these supplemental non-GAAP financial measures to assist the investment community to see the company “through the eyes of management,” and thereby enhance understanding of its operating performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.

    * Calculated Billings is a measure that we defined as total revenues recognized in accordance with GAAP plus the change in Total Deferred Revenues during the period

    ** Remaining Performance Obligation (RPO) is a measure that represents the total value of non-cancellable contracted products and/or services that are yet to be recognized as Revenue as of the period

     
    CHECK POINT SOFTWARE TECHNOLOGIES LTD.
    CONSOLIDATED STATEMENT OF INCOME
     
    (Unaudited, in millions, except per share amounts)
           
      Three Months Ended   Year Ended
      December 31,   December 31,
      2024   2023   2024   2023
    Revenues:              
    Products and licenses $ 170.6   $ 158.3   $ 507.9   $ 497.4
    Security subscriptions   292.2     265.8     1,104.2     981.2
    Total revenues from products and security subscriptions   462.8     424.1     1,612.1     1,478.6
    Software updates and maintenance   240.9     239.4     952.9     936.1
    Total revenues   703.7     663.5     2,565.0     2,414.7
                   
    Operating expenses:              
    Cost of products and licenses   29.6     28.0     97.8     99.3
    Cost of security subscriptions   19.7     17.2     72.6     57.0
    Total cost of products and security subscriptions   49.3     45.2     170.4     156.3
    Cost of Software updates and maintenance   33.4     30.5     123.9     112.3
    Amortization of technology   7.6     5.8     25.0     14.0
    Total cost of revenues   90.3     81.5     319.3     282.6
                   
    Research and development   101.1     100.0     394.9     368.9
    Selling and marketing   232.1     200.5     862.9     747.1
    General and administrative   25.9     29.7     111.9     117.0
    Total operating expenses   449.4     411.7     1,689.0     1,515.6
                   
    Operating income   254.3     251.8     876.0     899.1
    Financial income, net   24.5     18.4     96.1     76.5
    Income before taxes on income   278.8     270.2     972.1     975.6
    Taxes on income (tax benefit)   21.3     21.0     126.4     135.3
    Net income $ 257.5   $ 249.2   $ 845.7   $ 840.3
                           
    Basic earnings per share $ 2.36   $ 2.19   $ 7.65   $ 7.19
    Number of shares used in computing basic earnings per share   109.2     114.0     110.6     116.9
                           
    Diluted earnings per share $ 2.30   $ 2.15   $ 7.46   $ 7.10
    Number of shares used in computing diluted earnings per share   112.1     115.9     113.4     118.3
     
     
    CHECK POINT SOFTWARE TECHNOLOGIES LTD.
    SELECTED FINANCIAL METRICS
     (Unaudited, in millions, except per share amounts)
             
        Three Months Ended   Year Ended
        December 31,   December 31,
        2024   2023   2024   2023
                     
    Revenues   $ 703.7   $ 663.5   $ 2,565.0   $ 2,414.7
    Non-GAAP operating income     306.4     308.6     1,097.5     1,079.1
    Non-GAAP net income     303.2     298.5     1,039.1     997.1
    Diluted Non-GAAP Earnings per share   $ 2.70   $ 2.57   $ 9.16   $ 8.42
    Number of shares used in computing diluted Non-GAAP Earnings per share     112.1     115.9     113.4     118.3
                             
     
    CHECK POINT SOFTWARE TECHNOLOGIES LTD.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (Unaudited, in millions, except per share amounts)
             
        Three Months Ended   Year Ended
        December 31,   December 31,
          2024       2023       2024       2023  
                     
    GAAP operating income   $ 254.3     $ 251.8     $ 876.0     $ 899.1  
    Stock-based compensation (1)     29.8       39.9       149.7       145.3  
    Amortization of intangible assets and acquisition related expenses (2)     22.3       16.9       71.8       34.7  
    Non-GAAP operating income   $ 306.4     $ 308.6     $ 1,097.5     $ 1,079.1  
                     
    GAAP net income   $ 257.5     $ 249.2     $ 845.7     $ 840.3  
    Stock-based compensation (1)     29.8       39.9       149.7       145.3  
    Amortization of intangible assets and acquisition related expenses (2)     22.3       16.9       71.8       34.7  
    Taxes on the above items (3)     (6.4 )     (7.5 )     (28.1 )     (23.2 )
                                     
    Non-GAAP net income   $ 303.2     $ 298.5     $ 1,039.1     $ 997.1  
                     
    Diluted GAAP Earnings per share   $ 2.30     $ 2.15     $ 7.46     $ 7.10  
    Stock-based compensation (1)     0.26       0.34       1.32       1.23  
    Amortization of intangible assets and acquisition related expenses (2)     0.20       0.15       0.63       0.29  
    Taxes on the above items (3)     (0.06 )     (0.07 )     (0.25 )     (0.20 )
    Diluted Non-GAAP Earnings per share   $ 2.70     $ 2.57     $ 9.16     $ 8.42  
                     
    Number of shares used in computing diluted Non-GAAP Earnings per share     112.1       115.9       113.4       118.3  
                     
    (1) Stock-based compensation:                
    Cost of products and licenses   $ 0.1     $ 0.1     $ 0.4     $ 0.4  
    Cost of software updates and maintenance     2.0       2.4       8.2       7.3  
    Research and development     10.8       14.2       53.1       48.7  
    Selling and marketing     12.0       15.2       58.2       56.3  
    General and administrative     4.9       8.0       29.8       32.6  
          29.8       39.9       149.7       145.3  
                     
    (2) Amortization of intangible assets and acquisition related expenses:                
    Amortization of technology-cost of revenues     7.6       5.8       25.0       14.0  
    Research and development     1.7       2.0       6.5       7.0  
    Selling and marketing     13.0       9.1       40.3       13.7  
          22.3       16.9       71.8       34.7  
    (3) Taxes on the above items     (6.4 )     (7.5 )     (28.1 )     (23.2 )
    Total, net   $ 45.7     $ 49.3     $ 193.4     $ 156.8  
     
     
    CHECK POINT SOFTWARE TECHNOLOGIES LTD.
    CONDENSED CONSOLIDATED BALANCE SHEET DATA
     
    (In millions)
     
    ASSETS
               
          December 31,   December 31,
          2024
    (Unaudited)    		   2023
    (Audited)
    Current assets:          
    Cash and cash equivalents     $ 506.2   $ 537.7
    Marketable securities and short-term deposits       865.7     992.3
    Trade receivables, net       728.8     657.7
    Prepaid expenses and other current assets       92.7     70.0
    Total current assets       2,193.4     2,257.7
               
    Long-term assets:          
    Marketable securities       1,411.9     1,429.7
    Property and equipment, net       80.8     80.4
    Deferred tax asset, net       63.6     81.8
    Goodwill and other intangible assets, net       1,897.1     1,748.5
    Other assets       96.6     97.4
    Total long-term assets       3,550.0     3,437.8
               
    Total assets     $ 5,743.4   $ 5,695.5
     
               
    LIABILITIES AND
    SHAREHOLDERS’ EQUITY
               
    Current liabilities:          
    Deferred revenues     $ 1,471.3     $ 1,413.8  
    Trade payables and other accrued liabilities       472.9       502.3  
    Total current liabilities       1,944.2       1,916.1  
               
    Long-term liabilities:          
    Long-term deferred revenues       529.0       493.9  
    Income tax accrual       448.5       436.1  
    Other long-term liabilities       32.3       28.4  
            1,009.8       958.4  
               
    Total liabilities       2,954.0       2,874.5  
               
    Shareholders’ equity:          
    Share capital       0.8       0.8  
    Additional paid-in capital       3,052.8       2,732.5  
    Treasury shares at cost       (14,267.7 )     (13,041.2 )
    Accumulated other comprehensive gain (loss)       (10.3 )     (39.2 )
    Retained earnings       14,013.8       13,168.1  
    Total shareholders’ equity       2,789.4       2,821.0  
                       
    Total liabilities and shareholders’ equity     $ 5,743.4     $ 5,695.5  
    Total cash and cash equivalents, marketable securities, and short-term deposits     $ 2,783.8     $ 2,959.7  
     
     
    CHECK POINT SOFTWARE TECHNOLOGIES LTD.
    SELECTED CONSOLIDATED CASH FLOW DATA
     
    (Unaudited, in millions)
     
      Three Months Ended   Year Ended
      December 31,   December 31,
        2024       2023       2024       2023  
    Cash flow from operating activities:              
    Net income $ 257.5     $ 249.2     $ 845.7     $ 840.3  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation of property and equipment   6.3       5.7       24.0       23.1  
    Amortization of intangible assets   19.2       13.5       59.6       24.3  
    Stock-based compensation   29.8       39.9       149.7       145.3  
    Realized loss on marketable securities   –       –       –       6.7  
    Increase in trade and other receivables, net   (337.1 )     (324.3 )     (78.9 )     (61.0 )
    Increase in deferred revenues, trade payables and other accrued liabilities   273.0       270.6       59.7       65.5  
    Deferred income taxes, net   0.3       (18.8 )     (1.0 )     (9.5 )
    Net cash provided by operating activities   249.0       235.8       1,058.8       1,034.7  
                   
    Cash flow from investing activities:              
    Payment in conjunction with acquisitions, net of acquired cash   –       (3.8 )     (185.8 )     (458.8 )
    Investment in property and equipment   (6.5 )     (4.7 )     (24.2 )     (18.6 )
    Net cash used in investing activities   (6.5 )     (8.5 )     (210.0 )     (477.4 )
                   
    Cash flow from financing activities:              
    Proceeds from issuance of shares upon exercise of options   9.0       16.0       258.6       133.7  
    Purchase of treasury shares   (325.0 )     (313.2 )     (1,299.9 )     (1,287.6 )
    Payments related to shares withheld for taxes   (1.5 )     (1.2 )     (18.6 )     (11.0 )
    Net cash used in financing activities   (317.5 )     (298.4 )     (1,059.9 )     (1,164.9 )
                   
    Unrealized gain (loss) on marketable securities, net   (14.0 )     42.1       35.2       64.1  
                   
    Decrease in cash and cash equivalents, marketable securities, and short-term deposits   (89.0 )     (29.0 )     (175.9 )     (543.5 )
                   
    Cash and cash equivalents, marketable securities, and short-term deposits at the beginning of the period   2,872.8       2,988.7       2,959.7       3,503.2  
                   
    Cash and cash equivalents, marketable securities, and short-term deposits at the end of the period $ 2,783.8     $ 2,959.7     $ 2,783.8     $ 2,959.7  
     
       
    Investors: Kip E. Meintzer
    Check Point Software Technologies, Ltd.
    +1.650.628.2040
    ir@checkpoint.com    		 Media: Gil Messing
    Check Point Software Technologies, Ltd.
    +1.650.628.2260
    press@checkpoint.com

    The MIL Network –

  • MIL-OSI: Karolinska Development’s portfolio company Dilafor advances tafoxiparin following successful meetings with FDA and European regulatory authorities

    Source: GlobeNewswire (MIL-OSI)

    STOCKHOLM, SWEDEN – January 30, 2025. Karolinska Development AB (Nasdaq Stockholm: KDEV) today announces that its portfolio company Dilafor has successfully completed regulatory meetings with the U.S. Food and Drug Administration, FDA, and European Health Agencies, regarding the continued development of the company’s drug candidate tafoxiparin. The completed meetings mark the end of a comprehensive dialogue with regulatory authorities in the US and EU to reach an alignment between the authorities on designing pivotal clinical Phase 3 studies in Europe and the US to evaluate tafoxiparin as a new potential treatment for priming of labor.

    Dilafor has completed interactions with US and European authorities during 2023 – 2024 to achieve an alignment in the regulatory process ahead of the upcoming clinical phase 3 trials with the company’s drug candidate tafoxiparin, developed for priming of labor. Positive outcomes from scientific advice meetings with the FDA and the EMA, were followed by a Simultaneous National Scientific Advice, SNSA, including five key national EU authorities, in December 2024. The meetings resulted in an agreement on the overall study design; in particular the primary endpoint, inclusion criteria, and the performance of the study. Following this positive development, Dilafor will now finalize the detailed planning for pivotal Phase 3 studies in the US and Europe.

    “There is generally a lack of new product development in the obstetrical area, and tafoxiparin represents a new principle and mode of action compared to available therapies. The extensive interactions with regulatory bodies in the US and Europe have been extremely helpful and have led to an alignment on the design of a Phase 3 program. Along the way, the FDA has been clear that they share the view on tafoxiparin’s mode of action resulting in priming of labor,” says Lena Degling Wikingsson, CEO, Dilafor.

    Currently, more than 30 percent of term pregnant women are induced into labor. Existing interventions require fetal and maternal surveillance in hospital due to maternal and fetal high risk of complications, generating high healthcare costs. National guidance for labor induction have recently been revised to encourage delivery at 39 weeks of gestation in the US and at 40–41 weeks in Europe. The change in routines is supported by strong scientific publications and has been shown to reduce the risk of stillbirth, neonatal complications, operative deliveries leading to improved maternal and neonatal outcomes. The new guidance will lead to a further increase in the number of deliveries requiring labor induction. To reduce the constraints at the obstetrical clinics a new, safe home-based treatment option for labor priming may be a future solution.

    Tafoxiparins novel mechanism of action represents a potential breakthrough in obstetrical care by mimicking the natural priming of labor process. The drug candidate uniquely initiates both cervical ripening and myometrial remodeling over several days, initiating a spontaneous onset of labor leading to a vaginal delivery without traditional mechanical or pharmacological interventions. Tafoxiparin is the first drug developed for self-administration by the mother using a daily autoinjector at home, marking a possible improvement in quality of life for the pregnant woman and her family. Moreover, the tafoxiparin drug candidate has in Phase 2 studies demonstrated potential to reduce fetal and maternal complications and associated healthcare expenses.

    “We are seeing a clear trend towards earlier induction of labor in both Europe and the US as it has been shown to reduce infant mortality and the risk of complications during delivery radically. This is putting pressure on an already strained maternity care system with increased hospitalization. The aim of tafoxiparin is to enable treatment at home to start a natural process of labor priming resulting in spontaneous onset of labor,” says Viktor Drvota, CEO, Karolinska Development.

    Karolinska Development’s direct ownership in Dilafor amounts to 3% and indirect ownership interest via KDev Investment in Dilafor amounts to 29%.

    For further information, please contact:

    Viktor Drvota, CEO, Karolinska Development AB
    Phone: +46 73 982 52 02, e-mail: viktor.drvota@karolinskadevelopment.com 

    Johan Dighed, General Counsel and Deputy CEO, Karolinska Development AB
    Phone: +46 70 207 48 26, e-mail: johan.dighed@karolinskadevelopment.com

    TO THE EDITORS

    About Karolinska Development AB

    Karolinska Development AB (Nasdaq Stockholm: KDEV) is a Nordic life sciences investment company. The company focuses on identifying breakthrough medical innovations in the Nordic region that are developed by entrepreneurs and leadership teams. The Company invests in the creation and growth of companies that advance these assets into commercial products that are designed to make a difference to patient’s lives while providing an attractive return on investment to shareholders.

    Karolinska Development has access to world-class medical innovations at the Karolinska Institutet and other leading universities and research institutes in the Nordic region. The Company aims to build companies around scientists who are leaders in their fields, supported by experienced management teams and advisers, and co-funded by specialist international investors, to provide the greatest chance of success.

    Karolinska Development has a portfolio of eleven companies targeting opportunities in innovative treatment for life-threatening or serious debilitating diseases.

    The Company is led by an entrepreneurial team of investment professionals with a proven track record as company builders and with access to a strong global network.

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

    Attachment

    The MIL Network –

  • MIL-OSI: SHELL PLC 4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    Source: GlobeNewswire (MIL-OSI)

                                 
    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS    		        
                                                         
     
    SUMMARY OF UNAUDITED RESULTS
    Quarters $ million   Full year
    Q4 2024 Q3 2024 Q4 2023 %¹   Reference 2024 2023 %
    928    4,291    474    -78 Income/(loss) attributable to Shell plc shareholders   16,093    19,359    -17
    3,661    6,028    7,306    -39 Adjusted Earnings A 23,716    28,250    -16
    14,281    16,005    16,335    -11 Adjusted EBITDA A 65,803    68,538    -4
    13,162    14,684    12,575    -10 Cash flow from operating activities   54,684    54,191    +1
    (4,431)   (3,857)   (5,657)     Cash flow from investing activities   (15,154)   (17,734)    
    8,731    10,827    6,918      Free cash flow G 39,530    36,457     
    6,924    4,950    7,113      Cash capital expenditure C 21,084    24,392     
    9,401    9,570    10,897    -2 Operating expenses F 36,918    39,960    -8
    9,138    8,864    10,565    +3 Underlying operating expenses F 35,707    39,201    -9
    11.3% 12.8% 12.8%   ROACE2 D 11.3% 12.8%  
    77,078    76,613    81,541      Total debt E 77,078    81,541     
    38,809    35,234    43,542      Net debt E 38,809    43,542     
    17.7% 15.7% 18.8%   Gearing E 17.7% 18.8%  
    2,815    2,801    2,827    +1 Oil and gas production available for sale (thousand boe/d)   2,836    2,791    +2
    0.15    0.69    0.07 -78 Basic earnings per share ($)   2.55    2.88    -11
    0.60    0.96    1.11    -38 Adjusted Earnings per share ($) B 3.76    4.20    -10
    0.3580    0.3440    0.3440    +4 Dividend per share ($)   1.3900    1.2935    +7

    1.Q4 on Q3 change

    2.Effective first quarter 2024, the definition has been amended and comparative information has been revised. See Reference D.

    Quarter Analysis1

    Income attributable to Shell plc shareholders, compared with the third quarter 2024, reflected higher exploration well write-offs, lower margins from crude and oil products trading and optimisation, lower Marketing margins and volumes, lower LNG trading and optimisation margins, lower realised oil prices, and unfavourable tax movements.

    Fourth quarter 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals of $2.2 billion, and net losses related to sale of assets. These items are included in identified items amounting to a net loss of $2.8 billion in the quarter. This compares with identified items in the third quarter 2024 which amounted to a net loss of $1.3 billion.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items.

    Cash flow from operating activities for the fourth quarter 2024 was $13.2 billion, and primarily driven by Adjusted EBITDA, and working capital inflows of $2.4 billion partly offset by tax payments of $2.9 billion, and outflows relating to the timing impact of payments relating to emission certificates and biofuel programmes of $1.4 billion. The working capital inflows mainly reflected accounts receivable and payable movements, and initial margin inflow.

    Cash flow from investing activities for the quarter was an outflow of $4.4 billion, and included cash capital expenditure of $6.9 billion, partly offset by net other investing cash inflows of $1.1 billion, and divestment proceeds of $0.8 billion.

    Net debt and Gearing: At the end of the fourth quarter 2024, net debt was $38.8 billion, compared with $35.2 billion at the end of the third quarter 2024, mainly reflecting lease additions of $5.4 billion, share buybacks, cash dividends paid to Shell plc shareholders, and interest payments, partly offset by free cash flow. Gearing was 17.7% at the end of the fourth quarter 2024, compared with 15.7% at the end of the third quarter 2024, mainly driven by higher net debt.

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    Shareholder distributions

    Total shareholder distributions in the quarter amounted to $5.7 billion comprising repurchases of shares of $3.6 billion and cash dividends paid to Shell plc shareholders of $2.1 billion. Dividends declared to Shell plc shareholders for the fourth quarter 2024 amount to $0.3580 per share. Shell has now completed $3.5 billion of share buybacks announced in the third quarter 2024 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the first quarter 2025 results announcement.

    Full Year Analysis1

    Income attributable to Shell plc shareholders, compared with the full year 2023, reflected lower LNG trading and optimisation margins, lower realised prices, lower refining margins, as well as lower trading and optimisation margins of power and pipeline gas in Renewables and Energy Solutions, partly offset by lower operating expenses, and higher realised Chemicals margins.

    By focusing the portfolio and simplifying the organisation, $3.1 billion of pre-tax structural cost reductions3 were delivered through 2024 compared with 2022 levels, with $2.1 billion in the full year 2024.

    Full year 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals of $4.4 billion, reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures, unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, and charges related to redundancy and restructuring. These charges, reclassifications and movements are included in identified items amounting to a net loss of $7.4 billion. This compares with identified items in the full year 2023 which amounted to a net loss of $8.2 billion.

    Adjusted Earnings and Adjusted EBITDA2 for the full year 2024 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for identified items and the cost of supplies adjustment of positive $0.3 billion.

    Cash flow from operating activities for the full year 2024 was $54.7 billion, and primarily driven by Adjusted EBITDA, and working capital inflows of $2.1 billion, partly offset by tax payments of $12.0 billion.

    Cash flow from investing activities for the full year 2024 was an outflow of $15.2 billion and included cash capital expenditure of $21.1 billion, partly offset by divestment proceeds of $2.8 billion, and interest received of $2.4 billion.

    This Unaudited Condensed Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 4 . Details of progress to date on the financial targets that were announced during Capital Markets Day in June 2023 is available at https://www.shell.com/progress-on-cmd24.html 4.

    1.All earnings amounts are shown post-tax, unless stated otherwise.

    2.Adjusted EBITDA is without taxation.

    3.See Reference J.

    4.Not incorporated by reference.

    FOURTH QUARTER 2024 PORTFOLIO DEVELOPMENTS

    Upstream

    In October 2024, we announced the start of production of the floating production storage and offloading facility (FPSO) Marechal Duque de Caxias in the Mero field, in the pre-salt area of the Santos Basin, offshore Brazil. Also known as Mero-3, the FPSO has an operational capacity of 180,000 barrels of oil per day (Shell share 19.3%).

    In December 2024, we, along with Equinor ASA, announced the combination of our UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer. On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%). Completion of the transaction remains subject to approvals and is expected by the end of 2025.

    In December 2024, we announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria. Shell (55%) operates the Bonga field in partnership with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), on behalf of the Nigerian National Petroleum Company Limited.

    In January 2025, we announced the start of production at the Shell-operated Whale floating production facility in the Gulf of Mexico. The Whale development is owned by Shell (60%, operator) and Chevron U.S.A. Inc. (40%).

             Page 2

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    Chemicals and Products

    In January 2025, CNOOC and Shell Petrochemicals Company Limited (CSPC), a 50:50 joint venture between Shell and CNOOC Petrochemicals Investment Ltd, has taken a FID to expand its petrochemical complex in Daya Bay, Huizhou, south China.

    Renewables and Energy Solutions

    In October 2024, we signed an agreement to acquire a 100% equity stake in RISEC Holdings, LLC, which owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, USA. The deal was completed in January 2025.

             Page 2

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    PERFORMANCE BY SEGMENT

                                                         
     
    INTEGRATED GAS        
    Quarters $ million   Full year
    Q4 2024 Q3 2024 Q4 2023 %¹   Reference 2024 2023 %
    1,744    2,631    1,733    -34 Segment earnings   9,590    7,058    +36
    (421)   (240)   (2,235)     Of which: Identified items A (1,800)   (6,861)    
    2,165    2,871    3,968    -25 Adjusted Earnings A 11,390    13,919    -18
    4,568    5,234    6,584    -13 Adjusted EBITDA A 20,978    23,773    -12
    4,391    3,623    3,597    +21 Cash flow from operating activities A 16,909    17,520    -3
    1,337    1,236    1,196      Cash capital expenditure C 4,766    4,196     
    116    136    113    -15 Liquids production available for sale (thousand b/d)   132    128    +2
    4,574    4,669    4,570    -2 Natural gas production available for sale (million scf/d)   4,769    4,700    +1
    905    941    901    -4 Total production available for sale (thousand boe/d)   954    939    +2
    7.06    7.50    7.06    -6 LNG liquefaction volumes (million tonnes)   29.09    28.29    +3
    15.50    17.04    18.09    -9 LNG sales volumes (million tonnes)   65.82    67.09    -2

    1.Q4 on Q3 change

    Integrated Gas includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver these to market. Integrated Gas also includes the marketing, trading and optimisation of LNG.

    Quarter Analysis1

    Segment earnings, compared with the third quarter 2024, reflected the net effect of lower contributions from trading and optimisation mainly driven by the comparative (non-cash) impact of expiring hedging contracts and slightly higher realised prices (decrease of $340 million), lower volumes (decrease of $283 million), and higher exploration well write-offs (increase of $275 million), partly offset by lower operating expenses (decrease of $97 million).

    Fourth quarter 2024 segment earnings also included impairment charges of $339 million and a loss of $96 million related to sale of assets, partly offset by favourable movements of $109 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and favourable movements are part of identified items and compare with the third quarter 2024 which included unfavourable movements of $213 million due to the fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

    Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, net cash inflows related to derivatives of $120 million and working capital inflows of $114 million, partly offset by tax payments of $635 million.

    Total oil and gas production, compared with the third quarter 2024, decreased by 4% mainly due to planned maintenance in Pearl GTL (Qatar). LNG liquefaction volumes decreased by 6% mainly due to lower feedgas supply and fewer cargoes due to the timing of liftings.

    Full Year Analysis1

    Segment earnings, compared with the full year 2023, reflected the combined effect of lower contributions from trading and optimisation and lower realised prices (decrease of $3,819 million), partly offset by higher volumes (increase of $514 million), lower operating expenses (decrease of $478 million), and favourable deferred tax movements ($399 million).

    Full year 2024 segment earnings also included unfavourable movements of $1,088 million relating to an accounting mismatch due to fair value accounting of commodity derivatives, impairment charges of $363 million, and a net loss of $96 million related to sale of assets. These unfavourable movements and charges are part of identified items and compare with the full year 2023 which included unfavourable movements of $4,407 million due to the fair value accounting of commodity derivatives, and net impairment charges and reversals of $2,247 million. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

             Page 3

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

    Cash flow from operating activities for the full year 2024 was primarily driven by Adjusted EBITDA, and working capital inflows of $467 million, partly offset by tax payments of $2,955 million and net cash outflows related to derivatives of $1,466 million.

    Total oil and gas production, compared with the full year 2023, increased by 2% mainly due to ramp-up of fields in Oman and Australia. LNG liquefaction volumes increased by 3% mainly due to lower maintenance in Australia.

    1.All earnings amounts are shown post-tax, unless stated otherwise.

    2.Adjusted EBITDA is without taxation.

             Page 4

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                                         
     
    UPSTREAM          
    Quarters $ million   Full year
    Q4 2024 Q3 2024 Q4 2023 %¹   Reference 2024 2023 %
    1,031    2,289    2,151    -55 Segment earnings   7,772    8,539    -9
    (651)   (153)   (909)     Of which: Identified items A (623)   (1,267)    
    1,682    2,443    3,060    -31 Adjusted Earnings A 8,395    9,806    -14
    7,676    7,871    7,872    -2 Adjusted EBITDA A 31,264    30,622    +2
    4,509    5,268    5,787    -14 Cash flow from operating activities A 21,244    21,450    -1
    2,076    1,974    2,436      Cash capital expenditure C 7,890    8,343     
    1,332    1,321    1,361    +1 Liquids production available for sale (thousand b/d)   1,320    1,325    —
    3,056    2,844    2,952    +7 Natural gas production available for sale (million scf/d)   2,964    2,754    +8
    1,859    1,811    1,870    +3 Total production available for sale (thousand boe/d)   1,831    1,800    +2

    1.Q4 on Q3 change

    The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.

    Quarter Analysis1

    Segment earnings, compared with the third quarter 2024, reflected higher operating expenses (increase of $291 million), higher exploration well write-offs (increase of $283 million), unfavourable tax movements ($245 million) and lower realised liquids prices (decrease of $227 million), partly offset by higher volumes (increase of $370 million).

    Fourth quarter 2024 segment earnings also included a loss of $161 million related to the impact of the weakening Brazilian real on a deferred tax position, and net impairment charges and reversals of $152 million. These charges are part of identified items, and compare with the third quarter 2024 which included charges of $138 million related to redundancy and restructuring and charges of $104 million related to decommissioning provisions.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

    Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $2,019 million and working capital outflows of $611 million.

    Total production, compared with the third quarter 2024, increased mainly due to new oil production and lower scheduled maintenance.

    Full Year Analysis1

    Segment earnings, compared with the full year 2023, reflected unfavourable tax movements ($1,289 million), lower realised prices (decrease of $949 million) and higher exploration well write-offs (increase of $541 million), partly offset by the comparative favourable impact of $962 million mainly relating to gas storage effects.

    Full year 2024 segment earnings also included a loss of $325 million related to the impact of the weakening Brazilian real on a deferred tax position, net impairment charges and reversals of $323 million and charges of $214 million related to redundancy and restructuring, partly offset by gains of $638 million related to the impact of inflationary adjustments in Argentina on a deferred tax position. These charges and gains are part of identified items, and compare with the full year 2023 which included net impairment charges and reversals of $642 million, and net charges of $295 million related to the impact of the weakening Argentine peso and strengthening Brazilian real on a deferred tax position.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

    Cash flow from operating activities for the full year 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $7,851 million and the timing impact of dividends (net of profits) from joint ventures and associates of $946 million.

    Total production, compared with the full year 2023, increased mainly due to new oil production, partly offset by field decline.

    1.All earnings amounts are shown post-tax, unless stated otherwise.

    2.Adjusted EBITDA is without taxation.

             Page 5

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                                         
     
    MARKETING        
    Quarters $ million   Full year
    Q4 2024 Q3 2024 Q4 2023 %¹   Reference 2024 2023 %
    103    760    226    -86 Segment earnings2   1,894    3,058    -38
    (736)   (422)   (567)     Of which: Identified items2 A (1,991)   (254)    
    839    1,182    794    -29 Adjusted Earnings2 A 3,885    3,312    +17
    1,709    2,081    1,500    -18 Adjusted EBITDA2 A 7,476    6,337    +18
    1,363    2,722    1,767    -50 Cash flow from operating activities2 A 7,363    5,561    +32
    811    525    1,385      Cash capital expenditure2 C 2,445    5,790     
    2,795    2,945    2,997    -5 Marketing sales volumes (thousand b/d)2   2,843    3,045    -7

    1.Q4 on Q3 change

    2.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.

    The Marketing segment comprises the Mobility, Lubricants, and Sectors and Decarbonisation businesses. The Mobility business operates Shell’s retail network including electric vehicle charging services and the Wholesale commercial fuels business which provides fuels for transport, industry and heating. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors and Decarbonisation business sells fuels, speciality products and services including low-carbon energy solutions to a broad range of commercial customers including the aviation, marine, and agricultural sectors.

    Quarter Analysis1

    Segment earnings, compared with the third quarter 2024, reflected lower Marketing margins (decrease of $395 million) mainly due to seasonal impact of lower volumes and lower Mobility unit margins as well as lower Sectors and Decarbonisation and Lubricants margins. These were partly offset by lower operating expenses (decrease of $118 million).

    Fourth quarter 2024 segment earnings also included impairment charges of $458 million, and net losses of $247 million related to sale of assets. These charges are part of identified items, and compare with the third quarter 2024 impairment charges of $179 million, charges of $98 million related to redundancy and restructuring, and net losses of $84 million related to sale of assets.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

    Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, working capital inflows of $845 million, and dividends (net of profits) from joint ventures and associates of $172 million. These inflows were partly offset by outflows relating to the timing impact of payments relating to emission certificates and biofuel programmes of $1,187 million and tax payments of $130 million.

    Marketing sales volumes (comprising hydrocarbon sales), compared with the third quarter 2024, decreased mainly due to seasonality.

    Full Year Analysis1

    Segment earnings, compared with the full year 2023, reflected higher Marketing margins (increase of $483 million) including higher unit margins in Lubricants and Mobility partly offset by lower Sectors and Decarbonisation margins. Segment earnings also reflected lower operating expenses (decrease of $449 million). These were partly offset by unfavourable tax movements ($157 million) and higher depreciation charges (increase of $142 million).

    Full year 2024 segment earnings also included impairment charges of $1,423 million mainly relating to an asset in the Netherlands, net losses of $386 million related to the sale of assets and charges of $215 million related to redundancy and restructuring. These charges are part of identified items and compare with the full year 2023 which included net impairment charges and reversals of $466 million, and charges of $113 million related to redundancy and restructuring partly offset by gains of $298 million related to indirect tax credits.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

    Cash flow from operating activities for the full year 2024 was primarily driven by Adjusted EBITDA, working capital inflows of $998 million, and dividends (net of profits) from joint ventures and associates of $262 million. These inflows

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    were partly offset by tax payments of $562 million, non-cash cost of supplies adjustment of $254 million, and outflows relating to the timing impact of payments relating to emission certificates and biofuel programmes of $221 million.

    Marketing sales volumes (comprising hydrocarbon sales), compared with the full year 2023, decreased mainly in Mobility including increased focus on value over volume.

    1.All earnings amounts are shown post-tax, unless stated otherwise.

    2.Adjusted EBITDA is without taxation.

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                                         
     
    CHEMICALS AND PRODUCTS        
    Quarters $ million   Full year
    Q4 2024 Q3 2024 Q4 2023 %¹   Reference 2024 2023 %
    (328)   341    (1,828)   -196 Segment earnings2   1,757    1,482    +19
    (99)   (122)   (1,857)     Of which: Identified items2 A (1,177)   (2,135)    
    (229)   463    29    -150 Adjusted Earnings2 A 2,934    3,617    -19
    475    1,240    670    -62 Adjusted EBITDA2 A 6,783    7,489    -9
    2,032    3,321    1,150    -39 Cash flow from operating activities2 A 7,253    7,513    -3
    1,392    761    986      Cash capital expenditure2 C 3,290    3,013     
    1,215    1,305    1,315    -7 Refinery processing intake (thousand b/d)   1,344    1,349    —
    2,926    3,015    2,588    -3 Chemicals sales volumes (thousand tonnes)   11,875    11,245    +6

    1.Q4 on Q3 change

    2.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.

    The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the pipeline business, trading and optimisation of crude oil, oil products and petrochemicals, and Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).

    Quarter Analysis1

    Segment earnings, compared with the third quarter 2024, reflected lower Products margins (decrease of $442 million) mainly driven by lower margins from trading and optimisation. Segment earnings also reflected lower Chemicals margins (decrease of $138 million) mainly due to lower realised prices. In addition, the fourth quarter 2024 reflected unfavourable tax movements ($67 million).

    Fourth quarter 2024 segment earnings also included net impairment charges and reversals of $224 million, partly offset by favourable deferred tax movements of $114 million. These charges and favourable movements are part of identified items, and compare with the third quarter 2024 which included charges of $101 million related to redundancy and restructuring, and net impairment charges and reversals of $92 million, partly offset by favourable movements of $95 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the fourth quarter 2024, Chemicals had negative Adjusted Earnings of $258 million and Products had positive Adjusted Earnings of $29 million.

    Cash flow from operating activities for the quarter was primarily driven by working capital inflows of $1,394 million, Adjusted EBITDA, net cash inflows relating to commodity derivatives of $230 million, dividends (net of profits) from joint ventures and associates of $139 million, and non-cash cost of supplies adjustment of $73 million. These inflows were partly offset by outflows relating to the timing impact of payments relating to emission certificates and biofuel programmes of $371 million.

    Chemicals manufacturing plant utilisation was 75% compared with 76% in the third quarter 2024.

    Refinery utilisation was 76% compared with 81% in the third quarter 2024, mainly due to higher planned maintenance.

    Full Year Analysis1

    Segment earnings, compared with the full year 2023, reflected lower Products margins (decrease of $1,832 million), mainly driven by lower refining margins, and unfavourable tax movements ($248 million). These were partly offset by lower operating expenses (decrease of $812 million) and higher Chemicals margins (increase of $602 million).

    Full year 2024 segment earnings also included net impairment charges and reversals of $1,176 million mainly relating to assets in Singapore, charges of $142 million related to redundancy and restructuring, and unfavourable movements of $86 million relating to an accounting mismatch due to fair value accounting of commodity derivatives, partly offset by favourable deferred tax movements of $114 million. These charges and movements are part of identified items, and compare with the full year 2023 which included net impairment charges and reversals of $2,195 million mainly relating to

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    the Chemicals assets in Singapore, and charges of $82 million related to redundancy and restructuring partly offset by favourable movements of $214 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the full year 2024, Chemicals had negative Adjusted Earnings of $432 million and Products had positive Adjusted Earnings of $3,366 million.

    Cash flow from operating activities for the full year 2024 was primarily driven by Adjusted EBITDA, working capital inflows of $524 million, dividends (net of profits) from joint ventures and associates of $304 million and net cash inflows relating to commodity derivatives of $219 million. These inflows were partly offset by cash outflows relating to legal provisions of $215 million, tax payments of $146 million, cash outflows relating to the timing impact of payments relating to emission certificates and biofuel programmes of $114 million, and non-cash cost of supplies adjustment of $109 million.

    Chemicals manufacturing plant utilisation was 76% compared with 68% in the full year 2023, mainly due to economic optimisation in the full year 2023. The increase was also driven by ramp-up of Shell Polymers Monaca and lower unplanned maintenance in the full year 2024.

    Refinery utilisation was 85% compared with 85% in the full year 2023.

    1.All earnings amounts are shown post-tax, unless stated otherwise.

    2.Adjusted EBITDA is without taxation.

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    RENEWABLES AND ENERGY SOLUTIONS        
    Quarters $ million   Full year
    Q4 2024 Q3 2024 Q4 2023 %¹   Reference 2024 2023 %
    (1,226)   (481)   (272)   -155 Segment earnings   (1,229)   3,089    -140
    (914)   (319)   (445)     Of which: Identified items A (732)   2,333     
    (311)   (162)   173    -92 Adjusted Earnings A (497)   756    -166
    (123)   (75)   253    -64 Adjusted EBITDA A (22)   1,481    -101
    850    (364)   (1,265)   +333 Cash flow from operating activities A 3,798    2,984    +27
    1,277    409    1,026      Cash capital expenditure C 2,549    2,681     
    76    79    68    -4 External power sales (terawatt hours)2   306    279    +10
    165    148    175    +11 Sales of pipeline gas to end-use customers (terawatt hours)3   652    738    -12

    1.Q4 on Q3 change

    2.Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.

    3.Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.

    Renewables and Energy Solutions includes activities such as renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.

    Quarter Analysis1

    Segment earnings, compared with the third quarter 2024, reflected unfavourable one-off tax movements ($107 million), and higher operating expenses (increase of $71 million).

    Fourth quarter 2024 segment earnings also included impairment charges of $996 million mainly relating to renewable generation assets in North America, partly offset by favourable movements of $50 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and favourable movements are part of identified items and compare with the third quarter 2024 which included unfavourable movements of $279 million due to the fair value accounting of commodity derivatives. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. Most Renewables and Energy Solutions activities were loss-making in the fourth quarter 2024.

    Cash flow from operating activities for the quarter was primarily driven by net cash inflows related to derivatives of $533 million, and working capital inflows of $353 million, partly offset by Adjusted EBITDA.

    Full Year Analysis1

    Segment earnings, compared with the full year 2023, reflected lower margins (decrease of $1,719 million) mainly from trading and optimisation primarily in Europe due to lower volatility, partly offset by lower operating expenses (decrease of $632 million).

    Full year 2024 segment earnings also included net impairment charges and reversals of $1,085 million mainly relating to renewable generation assets in North America, partly offset by favourable movements of $300 million relating to an accounting mismatch due to fair value accounting of commodity derivatives and a net gain on sale of assets of $94 million. These net charges and favourable movements are part of identified items and compare with the full year 2023 which included favourable movements of $2,756 million due to the fair value accounting of commodity derivatives partly offset by net impairment charges and reversals of $669 million. As part of Shell’s normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

    Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. Most Renewables and Energy Solutions activities were loss-making for the full year 2024, which was partly offset by positive Adjusted Earnings from trading and optimisation.

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    Cash flow from operating activities for the full year 2024 was primarily driven by net cash inflows related to derivatives of $3,012 million, and working capital inflows of $923 million, partly offset by tax payments of $457 million and Adjusted EBITDA.

    1.All earnings amounts are shown post-tax, unless stated otherwise.

    2.Adjusted EBITDA is without taxation.

    Additional Growth Measures

                                                         
    Quarters     Full year
    Q4 2024 Q3 2024 Q4 2023 %¹     2024 2023 %
            Renewable power generation capacity (gigawatt):        
    3.4    3.4    2.5    — – In operation2   3.4    2.5    +34
    4.0    3.9    4.1    +2 – Under construction and/or committed for sale3   4.0    4.1    -1

    1.Q4 on Q3 change

    2.Shell’s equity share of renewable generation capacity post commercial operation date. It excludes Shell’s equity share of associates where information cannot be obtained.

    3.Shell’s equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements (PPA). It excludes Shell’s equity share of associates where information cannot be obtained.

                                             
     
    CORPORATE      
    Quarters $ million   Full year
    Q4 2024 Q3 2024 Q4 2023   Reference 2024 2023
    (335)   (647)   (629)   Segment earnings1   (2,992)   (2,944)  
    45    (3)   (19)   Of which: Identified items A (1,024)   (69)  
    (380)   (643)   (609)   Adjusted Earnings1 A (1,968)   (2,875)  
    (24)   (346)   (544)   Adjusted EBITDA1 A (675)   (1,164)  
    16    115    1,540    Cash flow from operating activities A (1,882)   (832)  

    1.From the first quarter 2024, Shell’s longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.

    The Corporate segment covers the non-operating activities supporting Shell. It comprises Shell’s holdings and treasury organisation, headquarters and central functions, self-insurance activities and centrally managed longer-term innovation portfolio. All finance expense, income and related taxes are included in Corporate segment earnings rather than in the earnings of business segments.

    Quarter Analysis1

    Segment earnings, compared with the third quarter 2024, reflected favourable tax movements and favourable currency exchange rate effects.

    Adjusted EBITDA2 was mainly driven by favourable currency exchange rate effects.

    Full Year Analysis1

    Segment earnings, compared with the full year 2023, were primarily driven by favourable tax movements, favourable net interest movements and favourable currency exchange rate effects.

    Full year 2024 segment earnings also included reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These reclassifications are included in identified items.

    Adjusted EBITDA2 was mainly driven by favourable currency exchange rate effects and lower operating expenses.

    1.All earnings amounts are shown post-tax, unless stated otherwise.

    2.Adjusted EBITDA is without taxation.

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    PRELIMINARY RESERVES UPDATE

    When final volumes are reported in the 2024 Annual Report and Accounts and 2024 Form 20-F, Shell expects that SEC proved oil and gas reserves additions before taking into account production will be approximately 0.9 billion boe, and that 2024 production will be approximately 1.1 billion boe. As a result, total proved reserves on an SEC basis are expected to be approximately 9.6 billion boe1, 2, 3. Acquisitions and divestments of 2024 reserves are expected to account for a net increase of approximately 0.05 billion boe.

    The proved Reserves Replacement Ratio on an SEC basis is expected to be 85% for the year (106% without debooking Groundbirch because of the low average AECO price in 2024) and 108% for the 3-year average. Excluding the impact of acquisitions and divestments, the proved Reserves Replacement Ratio is expected to be 80% (102% without debooking Groundbirch) for the year and 68% for the 3-year average.

    Further information will be provided in the 2024 Annual Report and Accounts and 2024 Form 20-F.

    1.Pursuant to our 2017 agreement with Canadian Natural Resources Limited, our remaining mining interest and associated synthetic crude oil reserves will be swapped for an additional 10% interest in the Scotford upgrader and Quest CCS project. The transaction is expected to close by the end of the first quarter 2025, subject to regulatory approvals. The associated proved reserves at December 31, 2024 are 0.7 billion barrels (of which 50% attributable to non-controlling interest).

    2.On January 16, 2024, we announced an agreement to sell our Nigerian onshore subsidiary The Shell Petroleum Development Company of Nigeria Limited (SPDC) which holds a 30% interest in the SPDC JV to Renaissance, subject to various conditions. As of December 31, 2024, we had proved reserves of 0.5 billion boe in SPDC.

    3.In December 2024, we, along with Equinor ASA, announced the combination of our UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer. On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%) and 0.16 billion boe (as of December 31, 2024) of Shell’s proved reserves will be contributed to the new joint venture alongside proved reserves contributed by Equinor. Subsequently, Shell will report 50% of the proved reserves of the new joint venture as part of Shell’s share of proved reserves from joint ventures and associates.

             Page 12

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    OUTLOOK FOR THE FIRST QUARTER 2025

    Full year 2024 cash capital expenditure was $21 billion. Our cash capital expenditure range for the full year 2025 is expected to be lower than our 2024 range, with more guidance to come at the Capital Markets Day 2025.

    Integrated Gas production is expected to be approximately 930 – 990 thousand boe/d. First quarter 2025 outlook reflects Pearl GTL back in operation after a major turnaround. LNG liquefaction volumes are expected to be approximately 6.6 – 7.2 million tonnes.

    Upstream production is expected to be approximately 1,750 – 1,950 thousand boe/d.

    Marketing sales volumes are expected to be approximately 2,500 – 3,000 thousand b/d.

    Refinery utilisation is expected to be approximately 80% – 88%. Chemicals manufacturing plant utilisation is expected to be approximately 78% – 86%.

    Corporate Adjusted Earnings were a net expense of $380 million1 for the fourth quarter 2024. Corporate Adjusted Earnings2 are expected to be a net expense of approximately $400 – $600 million in the first quarter 2025.

    1.From the first quarter 2024, Shell’s longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.

    2.For the definition of Adjusted Earnings and the most comparable GAAP measure please see reference A.

    FORTHCOMING EVENTS

               
     
    Date Event
    February 25, 2025 Shell LNG Outlook 2025 publication
       
    March 25, 2025 Publication of Annual Report and Accounts and filing of Form 20-F for the year ended December 31, 2024
    March 25, 2025 Capital Markets Day 2025
    May 2, 2025 First quarter 2025 results and dividends
    May 20, 2025 Annual General Meeting
    July 31, 2025 Second quarter 2025 results and dividends
    October 30, 2025 Third quarter 2025 results and dividends

             Page 13

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                                       
     
    CONSOLIDATED STATEMENT OF INCOME    
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    66,281    71,089    78,732    Revenue1 284,312    316,620   
    (156)   933    768    Share of profit/(loss) of joint ventures and associates 2,993    3,725   
    683    440    631    Interest and other income/(expenses)2 1,724    2,838   
    66,807    72,462    80,131    Total revenue and other income/(expenses) 289,029    323,183   
    43,610    48,225    54,745    Purchases 188,120    212,883   
    5,839    6,138    6,807    Production and manufacturing expenses 23,379    25,240   
    3,231    3,139    3,621    Selling, distribution and administrative expenses 12,439    13,433   
    331    294    469    Research and development 1,099    1,287   
    861    305    467    Exploration 2,411    1,750   
    7,520    5,916    11,221    Depreciation, depletion and amortisation2 26,872    31,290   
    1,213    1,174    1,166    Interest expense 4,787    4,673   
    62,605    65,190    78,496    Total expenditure 259,107    290,556   
    4,205    7,270    1,635    Income/(loss) before taxation 29,922    32,627   
    3,164    2,879    1,099    Taxation charge/(credit)2 13,401    12,991   
    1,041    4,391    536    Income/(loss) for the period 16,521    19,636   
    113    100    62    Income/(loss) attributable to non-controlling interest 427    277   
    928    4,291    474    Income/(loss) attributable to Shell plc shareholders 16,093    19,359   
    0.15    0.69    0.07    Basic earnings per share ($)3 2.55    2.88   
    0.15    0.68    0.07    Diluted earnings per share ($)3 2.53    2.85   

    1.See Note 2 “Segment information”.

    2.See Note 8 “Other notes to the unaudited Condensed Consolidated Financial Statements”.

    3.See Note 4 “Earnings per share”.

                                       
     
    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME    
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    1,041    4,391    536    Income/(loss) for the period 16,521    19,636   
          Other comprehensive income/(loss) net of tax:    
          Items that may be reclassified to income in later periods:    
    (4,899)   2,947    2,571    – Currency translation differences1 (3,248)   1,397   
    (11)   35    29    – Debt instruments remeasurements 5    41   
    224    (75)   11    – Cash flow hedging gains/(losses) 216    71   
    —    —    —    – Net investment hedging gains/(losses) —    (44)  
    (50)   (2)   (53)   – Deferred cost of hedging (73)   (148)  
    (91)   35    135    – Share of other comprehensive income/(loss) of joint ventures and associates (118)   18   
    (4,827)   2,940    2,692    Total (3,217)   1,335   
          Items that are not reclassified to income in later periods:    
    239    419    (1,207)   – Retirement benefits remeasurements 1,407    (1,083)  
    (50)   80    (84)   – Equity instruments remeasurements 28    (99)  
    46    (53)   (186)   – Share of other comprehensive income/(loss) of joint ventures and associates 47    (201)  
    235    446    (1,477)   Total 1,482    (1,383)  
    (4,592)   3,386    1,215    Other comprehensive income/(loss) for the period (1,735)   (48)  
    (3,552)   7,777    1,750    Comprehensive income/(loss) for the period 14,786    19,588   
    50    177    96    Comprehensive income/(loss) attributable to non-controlling interest 407    312   
    (3,602)   7,600    1,654    Comprehensive income/(loss) attributable to Shell plc shareholders 14,379    19,276   

    1.See Note 8 “Other notes to the unaudited Condensed Consolidated Financial Statements”.

             Page 14

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                     
     
    CONDENSED CONSOLIDATED BALANCE SHEET
    $ million    
      December 31, 2024 December 31, 2023
    Assets    
    Non-current assets    
    Goodwill 16,032    16,660   
    Other intangible assets 9,480    10,253   
    Property, plant and equipment 185,219    194,835   
    Joint ventures and associates 23,445    24,457   
    Investments in securities 2,255    3,246   
    Deferred tax 6,857    6,454   
    Retirement benefits1 10,003    9,151   
    Trade and other receivables 6,018    6,298   
    Derivative financial instruments² 374    801   
      259,681    272,155   
    Current assets    
    Inventories 23,426    26,019   
    Trade and other receivables 45,860    53,273   
    Derivative financial instruments² 9,673    15,098   
    Cash and cash equivalents 39,110    38,774   
      118,069    133,164   
    Assets classified as held for sale1 9,857    951   
      127,926    134,115   
    Total assets 387,607    406,270   
    Liabilities    
    Non-current liabilities    
    Debt 65,448    71,610   
    Trade and other payables 3,290    3,103   
    Derivative financial instruments² 2,185    2,301   
    Deferred tax 13,505    15,347   
    Retirement benefits1 6,752    7,549   
    Decommissioning and other provisions 21,227    22,531   
      112,408    122,441   
    Current liabilities    
    Debt 11,630    9,931   
    Trade and other payables 60,693    68,237   
    Derivative financial instruments² 7,391    9,529   
    Income taxes payable 4,648    3,422   
    Decommissioning and other provisions 4,469    4,041   
      88,831    95,160   
    Liabilities directly associated with assets classified as held for sale1 6,203    307   
      95,034    95,467   
    Total liabilities 207,442    217,908   
    Equity attributable to Shell plc shareholders 178,303    186,607   
    Non-controlling interest 1,861    1,755   
    Total equity 180,165    188,362   
    Total liabilities and equity 387,607    406,270   

    1.    See Note 8 “Other notes to the unaudited Condensed Consolidated Financial Statements”.

    2.    See Note 7 “Derivative financial instruments and debt excluding lease liabilities”.

             Page 15

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                                         
     
    CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
      Equity attributable to Shell plc shareholders      
    $ million Share capital1 Shares held in trust Other reserves² Retained earnings Total Non-controlling interest   Total equity
    At January 1, 2024 544    (997)   21,145    165,915    186,607    1,755      188,362   
    Comprehensive income/(loss) for the period —    —    (1,715)   16,093    14,378    407      14,785   
    Transfer from other comprehensive income —    —    193    (193)   —    —      —   
    Dividends³ —    —    —    (8,669)   (8,669)   (308)     (8,976)  
    Repurchases of shares4 (34)   —    34    (14,057)   (14,057)   —      (14,057)  
    Share-based compensation —    194    109    (354)   (52)   —      (52)  
    Other changes —    —    —    96    96    7      103   
    At December 31, 2024 510    (804)   19,766    158,832    178,303    1,861      180,165   
    At January 1, 2023 584    (726)   21,132    169,482    190,472    2,125      192,597   
    Comprehensive income/(loss) for the period —    —    (83)   19,359    19,276    312      19,588   
    Transfer from other comprehensive income —    —    (112)   112    —    —      —   
    Dividends3 —    —    —    (8,389)   (8,389)   (764)     (9,153)  
    Repurchases of shares4 (40)   —    40    (14,571)   (14,571)   —      (14,571)  
    Share-based compensation —    (271)   168    (85)   (188)   —      (188)  
    Other changes —    —    —    7    7    82      89   
    At December 31, 2023 544    (997)   21,145    165,915    186,607    1,755      188,362   

    1.    See Note 5 “Share capital”.

    2.    See Note 6 “Other reserves”.

    3.    The amount charged to retained earnings is based on prevailing exchange rates on payment date.

    4.     Includes shares committed to repurchase under an irrevocable contract and repurchases subject to settlement at the end of the quarter.

             Page 16

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                             
     
    CONSOLIDATED STATEMENT OF CASH FLOWS    
    Quarters $ million Full year
    Q4 2024   Q3 2024 Q4 2023   2024 2023
    4,205      7,270    1,635    Income before taxation for the period 29,922    32,627   
            Adjustment for:    
    665      554    571    – Interest expense (net) 2,415    2,360   
    7,520      5,916    11,221    – Depreciation, depletion and amortisation1 26,872    31,290   
    649      150    243    – Exploration well write-offs 1,622    868   
    288      154    (222)   – Net (gains)/losses on sale and revaluation of non-current assets and businesses 288    (246)  
    156      (933)   (768)   – Share of (profit)/loss of joint ventures and associates (2,993)   (3,725)  
    1,241      860    1,145    – Dividends received from joint ventures and associates 3,632    3,674   
    131      2,705    4,088    – (Increase)/decrease in inventories 1,273    6,325   
    751      4,057    (704)   – (Increase)/decrease in current receivables 6,578    12,401   
    1,524      (4,096)   (701)   – Increase/(decrease) in current payables2 (5,789)   (11,581)  
    111      735    328    – Derivative financial instruments 2,484    (5,723)  
    (58)     125    (68)   – Retirement benefits (326)   (37)  
    (256)     359    430    – Decommissioning and other provisions2 (828)   220   
    (856)     (144)   (1,021)   – Other1 1,536    (550)  
    (2,910)     (3,028)   (3,604)   Tax paid (12,002)   (13,712)  
    13,162      14,684    12,575    Cash flow from operating activities 54,684    54,191   
    (6,486)     (4,690)   (6,960)      Capital expenditure (19,601)   (22,993)  
    (421)     (222)   (109)      Investments in joint ventures and associates (1,404)   (1,202)  
    (17)     (38)   (44)      Investments in equity securities (80)   (197)  
    (6,924)     (4,950)   (7,113)   Cash capital expenditure (21,084)   (24,392)  
    493      94    540    Proceeds from sale of property, plant and equipment and businesses 1,621    2,565   
    305      94    49    Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans 590    474   
    6      6    24    Proceeds from sale of equity securities 582    51   
    581      593    568    Interest received 2,399    2,124   
    1,762      1,074    960    Other investing cash inflows1 4,576    4,269   
    (655)     (769)   (685)   Other investing cash outflows (3,838)   (2,825)  
    (4,431)     (3,857)   (5,657)   Cash flow from investing activities (15,154)   (17,734)  
    65      (89)   (27)   Net increase/(decrease) in debt with maturity period within three months (310)   (211)  
            Other debt:    
    (13)     78    64    – New borrowings 363    1,029   
    (2,664)     (1,322)   (4,054)   – Repayments (9,672)   (10,650)  
    (1,379)     (979)   (1,366)   Interest paid (4,557)   (4,441)  
    (833)     652    702    Derivative financial instruments (594)   723   
    (10)     —    (1)   Change in non-controlling interest (15)   (22)  
            Cash dividends paid to:    
    (2,114)     (2,167)   (2,201)   – Shell plc shareholders (8,668)   (8,393)  
    (53)     (92)   (128)   – Non-controlling interest (295)   (764)  
    (3,579)     (3,537)   (3,977)   Repurchases of shares (13,898)   (14,617)  
    (309)     6    (714)   Shares held in trust: net sales/(purchases) and dividends received (789)   (889)  
    (10,889)     (7,452)   (11,703)   Cash flow from financing activities (38,434)   (38,235)  
    (985)     729    529    Effects of exchange rate changes on cash and cash equivalents (761)   306   
    (3,142)     4,105    (4,256)   Increase/(decrease) in cash and cash equivalents 336    (1,472)  
    42,252      38,148    43,031    Cash and cash equivalents at beginning of period 38,774    40,246   
    39,110      42,252    38,774    Cash and cash equivalents at end of period 39,110    38,774   

    1.See Note 8 “Other notes to the unaudited Condensed Consolidated Financial Statements”.

    2.To further enhance consistency between working capital and the Balance Sheet and the Statement of Cash Flows, from January 1, 2024, onwards movements in current other provisions are recognised in ‘Decommissioning and other provisions’ instead of ‘Increase/(decrease) in current payables’. Comparatives for the fourth quarter 2023 and the full year 2023 have been reclassified accordingly by $653 million and $693 million respectively to conform with current period presentation.

             Page 17

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    1. Basis of preparation

    These unaudited Condensed Consolidated Financial Statements of Shell plc (“the Company”) and its subsidiaries (collectively referred to as “Shell”) have been prepared on the basis of the same accounting principles as those used in the Company’s Annual Report and Accounts (pages 244 to 316) for the year ended December 31, 2023, as filed with the Registrar of Companies for England and Wales and as filed with the Autoriteit Financiële Markten (the Netherlands) and Form 20-F (pages 217 to 290) for the year ended December 31, 2023, as filed with the US Securities and Exchange Commission, and should be read in conjunction with these filings.

    The financial information presented in the unaudited Condensed Consolidated Financial Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory accounts for the year ended December 31, 2023, were published in Shell’s Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell’s Form 20-F. The auditor’s report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act. The statutory accounts for the year ended December 31, 2024, will be delivered to the Registrar of Companies for England and Wales in due course.

    2. Segment information

    Segment earnings are presented on a current cost of supplies basis (CCS earnings), which is the earnings measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance. On this basis, the purchase price of volumes sold during the period is based on the current cost of supplies during the same period after making allowance for the tax effect. CCS earnings therefore exclude the effect of changes in the oil price on inventory carrying amounts. Sales between segments are based on prices generally equivalent to commercially available prices.

    From the first quarter 2024, Wholesale commercial fuels forms part of Mobility with inclusion in the Marketing segment (previously Chemicals and Products segment). The change in segmentation reflects the increasing alignment between the economic characteristics of Wholesale commercial fuels and other Mobility businesses, and is consistent with changes in the information provided to the Chief Operating Decision Maker. Prior period comparatives have been revised to conform with current year presentation with an offsetting impact between the Marketing and the Chemicals and Products segment (see below). Also, from the first quarter 2024, Shell’s longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments (see below).

             Page 18

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                       
     
    REVENUE AND CCS EARNINGS BY SEGMENT    
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
          Third-party revenue    
    9,294    9,748    10,437    Integrated Gas 37,290    37,645   
    1,652    1,605    1,263    Upstream 6,606    6,475   
    27,524    30,519    31,761    Marketing2 120,088    130,560   
    19,992    22,608    24,957    Chemicals and Products2 90,918    97,079   
    7,808    6,599    10,302    Renewables and Energy Solutions 29,366    44,819   
    10    10    11    Corporate 43    42   
    66,281    71,089    78,732    Total third-party revenue1 284,312    316,620   
          Inter-segment revenue    
    2,024    2,131    2,614    Integrated Gas 8,715    11,560   
    9,931    9,618    10,948    Upstream 39,939    41,230   
    984    1,235    1,243    Marketing2 4,937    5,299   
    8,656    9,564    10,163    Chemicals and Products2 38,381    42,816   
    1,879    1,131    1,567    Renewables and Energy Solutions 4,971    4,707   
    —    —    —    Corporate —    —   
          CCS earnings    
    1,744    2,631    1,733    Integrated Gas 9,590    7,058   
    1,031    2,289    2,151    Upstream 7,772    8,539   
    103    760    226    Marketing2 1,894    3,058   
    (328)   341    (1,828)   Chemicals and Products2 1,757    1,482   
    (1,226)   (481)   (272)   Renewables and Energy Solutions (1,229)   3,089   
    (335)   (647)   (629)   Corporate3 (2,992)   (2,944)  
    989    4,894    1,381    Total CCS earnings4 16,792    20,281   

    1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives.

    2.From January 1, 2024, onwards Wholesale commercial fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the fourth quarter 2023 and the full year 2023 have been reclassified accordingly, by $5,332 million and $21,702 million respectively for Third-party revenue and by $82 million and $104 million respectively for CCS earnings to conform with current period presentation. For Inter-segment revenue the reallocation and revision of comparative figures for the fourth quarter 2023 and the full year 2023 led to an increase in inter-segment revenue in the Marketing segment of $1,058 million and $4,675 million respectively and an increase in the Chemicals and Products segment of $9,553 million and $40,564 million respectively.

    3.From January 1, 2024, onwards costs for Shell’s centrally managed longer-term innovation portfolio are reported as part of the Corporate segment. Prior period comparatives for Corporate for the fourth quarter 2023 and the full year 2023 have been revised by $43 million and $133 million respectively, with a net offsetting impact in all other segments to conform with current period presentation.

    4.See Note 3 “Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt”.

             Page 19

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    Cash capital expenditure is a measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.

                                       
     
    CASH CAPITAL EXPENDITURE BY SEGMENT
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
          Capital expenditure    
    1,123    1,090    1,034    Integrated Gas 4,095    3,491   
    2,205    1,998    2,547    Upstream 7,738    8,249   
    798    488    1,383    Marketing1 2,357    5,741   
    1,121    748    983    Chemicals and Products1 2,943    2,928   
    1,214    327    932    Renewables and Energy Solutions 2,338    2,314   
    25    39    81    Corporate 129    270   
    6,486    4,690    6,960    Total capital expenditure 19,601    22,993   
          Add: Investments in joint ventures and associates    
    214    147    162    Integrated Gas 671    705   
    (117)   (37)   (111)   Upstream 150    94   
    13    37    2    Marketing 88    49   
    271    13    2    Chemicals and Products 347    84   
    36    59    56    Renewables and Energy Solutions 138    261   
    4    3    (2)   Corporate 9    9   
    421    222    109    Total investments in joint ventures and associates 1,404    1,202   
          Add: Investments in equity securities    
    —    —    —    Integrated Gas —    —   
    (11)   12    —    Upstream 1    —   
    —    —    —    Marketing —    —   
    —    —    —    Chemicals and Products —    2   
    28    23    38    Renewables and Energy Solutions 73    106   
    —    3    6    Corporate 6    89   
    17    38    44    Total investments in equity securities 80    197   
          Cash capital expenditure    
    1,337    1,236    1,196    Integrated Gas 4,766    4,196   
    2,076    1,974    2,436    Upstream 7,890    8,343   
    811    525    1,385    Marketing1 2,445    5,790   
    1,392    761    986    Chemicals and Products1 3,290    3,013   
    1,277    409    1,026    Renewables and Energy Solutions 2,549    2,681   
    30    45    85    Corporate 144    368   
    6,924    4,950    7,113    Total Cash capital expenditure 21,084    24,392   

    1.From January 1, 2024, onwards Wholesale commercial fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the fourth quarter 2023 and the full year 2023 have been reclassified accordingly by $46 million and $178 million respectively for capital expenditure and cash capital expenditure to conform with current period presentation.

             Page 20

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    3. Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt

                                       
     
    RECONCILIATION OF INCOME FOR THE PERIOD TO CCS EARNINGS    
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    928    4,291    474    Income/(loss) attributable to Shell plc shareholders 16,093    19,359   
    113    100    62    Income/(loss) attributable to non-controlling interest 427    277   
    1,041    4,391    536    Income/(loss) for the period 16,521    19,636   
          Current cost of supplies adjustment:    
    (84)   668    1,089    Purchases 389    815   
    23    (162)   (263)   Taxation (91)   (203)  
    9    (2)   19    Share of profit/(loss) of joint ventures and associates (26)   33   
    (52)   503    846    Current cost of supplies adjustment 272    645   
          Of which:    
    (45)   477    811    Attributable to Shell plc shareholders 257    650
    (7)   26    34    Attributable to non-controlling interest 14    (5)
    989    4,894    1,381    CCS earnings 16,792    20,281   
          Of which:    
    883    4,768    1,285    CCS earnings attributable to Shell plc shareholders 16,351    20,008   
    106    126    97    CCS earnings attributable to non-controlling interest 442    273   
                                       
     
    RECONCILIATION OF OPERATING EXPENSES    
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    5,839    6,138    6,807    Production and manufacturing expenses 23,379    25,240   
    3,231    3,139    3,621    Selling, distribution and administrative expenses 12,439    13,433   
    331    294    469    Research and development 1,099    1,287   
    9,401    9,570    10,897    Operating expenses 36,918    39,960   
                                       
     
    RECONCILIATION OF TOTAL DEBT    
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    December 31, 2024 September 30, 2024 December 31, 2023   December 31, 2024 December 31, 2023
    11,630    12,015    9,931    Current debt 11,630    9,931   
    65,448    64,597    71,610    Non-current debt 65,448    71,610   
    77,078    76,613    81,541    Total debt 77,078    81,541   

    4. Earnings per share

                                       
     
    EARNINGS PER SHARE
    Quarters   Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    928    4,291    474    Income/(loss) attributable to Shell plc shareholders ($ million) 16,093    19,359   
               
          Weighted average number of shares used as the basis for determining:    
    6,148.4    6,256.5    6,558.3    Basic earnings per share (million) 6,299.6    6,733.5   
    6,213.9    6,320.9    6,631.1    Diluted earnings per share (million) 6,363.7    6,799.8   

             Page 21

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    5. Share capital

                             
     
    ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH
      Number of shares   Nominal value
    ($ million)
    At January 1, 2024 6,524,109,049      544     
    Repurchases of shares (409,077,891)     (34)    
    At December 31, 2024 6,115,031,158      510     
    At January 1, 2023 7,003,503,393      584     
    Repurchases of shares (479,394,344)     (40)    
    At December 31, 2023 6,524,109,049      544     

    At Shell plc’s Annual General Meeting on May 21, 2024, the Board was authorised to allot ordinary shares in Shell plc, and to grant rights to subscribe for, or to convert, any security into ordinary shares in Shell plc, up to an aggregate nominal amount of approximately €150 million (representing approximately 2,147 million ordinary shares of €0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 20, 2025, or the end of the Annual General Meeting to be held in 2025, unless previously renewed, revoked or varied by Shell plc in a general meeting.

    6. Other reserves

                                             
     
    OTHER RESERVES
    $ million Merger reserve Share premium reserve Capital redemption reserve Share plan reserve Accumulated other comprehensive income Total
    At January 1, 2024 37,298    154    236    1,308    (17,851)   21,145   
    Other comprehensive income/(loss) attributable to Shell plc shareholders —    —    —    —    (1,715)   (1,715)  
    Transfer from other comprehensive income —    —    —    —    193    193   
    Repurchases of shares —    —    34    —    —    34   
    Share-based compensation —    —    —    109    —    109   
    At December 31, 2024 37,298    154    270    1,416    (19,373)   19,766   
    At January 1, 2023 37,298    154    196    1,140    (17,656)   21,132   
    Other comprehensive income/(loss) attributable to Shell plc shareholders —    —    —    —    (83)   (83)  
    Transfer from other comprehensive income —    —    —    —    (112)   (112)  
    Repurchases of shares —    —    40    —    —    40   
    Share-based compensation —    —    —    168    —    168   
    At December 31, 2023 37,298    154    236    1,308    (17,851)   21,145   

    The merger reserve and share premium reserve were established as a consequence of Shell plc (formerly Royal Dutch Shell plc) becoming the single parent company of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans.

    7. Derivative financial instruments and debt excluding lease liabilities

    As disclosed in the Consolidated Financial Statements for the year ended December 31, 2023, presented in the Annual Report and Accounts and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at December 31, 2024, are consistent with those used in the year ended December 31, 2023, though the carrying amounts of derivative financial instruments have changed since that

             Page 22

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    date. The movement of the derivative financial instruments between December 31, 2023 and December 31, 2024 is a decrease of $5,425 million for the current assets and a decrease of $2,138 million for the current liabilities.

    The table below provides the comparison of the fair value with the carrying amount of debt excluding lease liabilities, disclosed in accordance with IFRS 7 Financial Instruments: Disclosures.

                     
     
    DEBT EXCLUDING LEASE LIABILITIES
    $ million December 31, 2024 December 31, 2023
    Carrying amount1 48,376    53,832   
    Fair value2 44,119    50,866   

    1.    Shell issued no debt under the US shelf or under the Euro medium-term note programmes during the year 2024.

    2.     Mainly determined from the prices quoted for these securities.

    8. Other notes to the unaudited Condensed Consolidated Financial Statements

    Consolidated Statement of Income

    Interest and other income

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    683    440    631    Interest and other income/(expenses) 1,724    2,838   
          Of which:    
    548    619    595    Interest income 2,372    2,313   
    25    4    14    Dividend income (from investments in equity securities) 83    49   
    (288)   (154)   222    Net gains/(losses) on sales and revaluation of non-current assets and businesses (288)   257   
    267    (189)   (398)   Net foreign exchange gains/(losses) on financing activities (1,025)   (458)  
    131    159    199    Other 582    677   

    Depreciation, depletion and amortisation

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    7,520    5,916    11,221    Depreciation, depletion and amortisation 26,872    31,290   
          Of which:    
    5,829 5,578 5,986 Depreciation 22,703    23,106   
    1,797 340 5,508 Impairments 4,502    8,947   
    (106) (2) (273) Impairment reversals (333)   (762)  

    Impairments recognised in the fourth quarter 2024 of $2,659 million pre-tax ($2,245 million post-tax), of which $1,797 million recognised in depreciation, depletion and amortisation and $863 million recognised in share of profit of joint ventures and associates, mainly relate to Renewables and Energy Solutions ($1,068 million pre-tax; $1,000 million post-tax), Integrated Gas ($532 million pre-tax; $345 million post-tax), Marketing ($495 million pre-tax; $459 million post-tax), Chemicals and Products ($315 million pre-tax; $247 million post-tax) and Upstream ($248 million pre-tax; $194 million post-tax). The impairment in Renewables and Energy Solutions was principally triggered by a portfolio choice regarding renewable generation assets in North America. The impairments in other segments relate to various smaller impairments.

    Impairments recognised in the third quarter 2024 of $340 million pre-tax ($290 million post-tax) mainly relate to various

    assets in Marketing and Chemicals and Products.

    Impairments recognised in the fourth quarter 2023 of $5,508 million pre-tax ($4,044 million post-tax) relate to various

    assets in Chemicals and Products ($2,490 million), Upstream ($1,161 million), Integrated Gas ($873 million), Renewables

    and Energy Solutions ($614 million) and Marketing ($370 million).

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    Taxation charge/credit

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    3,164    2,879    1,099    Taxation charge/(credit) 13,401    12,991   
          Of which:    
    3,125 2,834 1,099 Income tax excluding Pillar Two income tax 13,150    12,991   
    39 45 — Income tax related to Pillar Two income tax 251    —

    On June 20, 2023, the UK substantively enacted Pillar Two Model Rules, effective as from January 1, 2024.

    As required by IAS 12 Income Taxes, Shell has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

    Consolidated Statement of Comprehensive Income

    Currency translation differences

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    (4,899)   2,947    2,571    Currency translation differences (3,248)   1,397   
          Of which:    
    (5,028) 2,912 2,578 Recognised in Other comprehensive income (4,504)   1,396   
    129 35 (7) (Gain)/loss reclassified to profit or loss 1,256    1

    Condensed Consolidated Balance Sheet

    Retirement benefits

                     
     
    $ million    
      December 31, 2024 December 31, 2023
    Non-current assets    
    Retirement benefits 10,003    9,151   
    Non-current liabilities    
    Retirement benefits 6,752    7,549   
    Surplus/(deficit) 3,251    1,602   

    Amounts recognised in the Balance Sheet in relation to defined benefit plans include both plan assets and obligations that are presented on a net basis on a plan-by-plan basis. The change in the net retirement benefit asset as at December 31, 2024, is mainly driven by an increase of the market yield on high-quality corporate bonds in the USA, the UK and Eurozone since December 31, 2023, partly offset by losses on plan assets.

    Assets classified as held for sale

                       
       
    $ million      
      December 31, 2024 December 31, 2023  
    Assets classified as held for sale 9,857    951     
    Liabilities directly associated with assets classified as held for sale 6,203    307     

    Assets classified as held for sale and associated liabilities at December 31, 2024 principally relate to Shell’s UK offshore oil and gas assets in Upstream, mining interests in Canada in Chemicals and Products and an energy and chemicals park in Chemicals and Products in Singapore. Upon completion of the sale, Shell’s UK offshore assets will be derecognised in exchange for a 50% interest in a newly formed joint venture.

    The major classes of assets and liabilities classified as held for sale at December 31, 2024, are Property, plant and equipment ($8,283 million; December 31, 2023: $250 million), Inventories ($1,180 million; December 31, 2023:

             Page 24

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    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    $463 million), Decommissioning and other provisions ($3,053 million; December 31, 2023: $75 million), deferred tax liabilities ($2,042 million; December 31, 2023: nil) and Debt ($624 million; December 31, 2023: $84 million).

    Consolidated Statement of Cash Flows

    Cash flow from operating activities – Other

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    (856)   (144)   (1,021)   Other 1,536    (550)  

    ‘Cash flow from operating activities – Other’ for the fourth quarter 2024 includes $1,447 million of net outflows (third quarter 2024: $432 million net inflows; fourth quarter 2023: $875 million net outflows) due to the timing of payments relating to emission certificates and biofuel programmes in Europe and North America and $672 million in relation to reversal of currency exchange losses on Cash and cash equivalents (third quarter 2024: $539 million gains; fourth quarter 2023: $398 million gains).

    Cash flow from investing activities – Other investing cash inflows

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    1,762    1,074    960    Other investing cash inflows 4,576    4,269   

    ‘Cash flow from investing activities – Other investing cash inflows’ for the fourth quarter 2024 mainly relates to the sale of pension-related debt securities and repayments of short-term loans.

    9. Post-balance sheet events

    On January 23, 2025, Shell announced changes to the Executive Committee. In line with the company’s ongoing transformation, Shell will continue to evolve its structure to enable Shell’s strategy to deliver more value with less emissions. As a result, Trading and Supply will move up to the Executive Committee and out of the Downstream, Renewables and Energy Solutions directorate with effect from April 1, 2025. These changes will not affect Shell’s financial reporting segments.

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    ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES

    A.Adjusted Earnings, Adjusted earnings before interest, taxes, depreciation and amortisation (“Adjusted EBITDA”) and Cash flow from operating activities

    The “Adjusted Earnings” measure aims to facilitate a comparative understanding of Shell’s financial performance from period to period by removing the effects of oil price changes on inventory carrying amounts and removing the effects of identified items. These items are in some cases driven by external factors and may, either individually or collectively, hinder the comparative understanding of Shell’s financial results from period to period. This measure excludes earnings attributable to non-controlling interest.

    We define “Adjusted EBITDA” as “Income/(loss) for the period” adjusted for current cost of supplies; identified items; tax charge/(credit); depreciation, amortisation and depletion; exploration well write-offs and net interest expense. All items include the non-controlling interest component. Management uses this measure to evaluate Shell’s performance in the period and over time.

                                       
         
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    928    4,291    474    Income/(loss) attributable to Shell plc shareholders 16,093    19,359   
    113    100    62    Income/(loss) attributable to non-controlling interest 427    277   
    (45)   477    811    Add: Current cost of supplies adjustment attributable to Shell plc shareholders 257    650   
    (7)   26    34    Add: Current cost of supplies adjustment attributable to non-controlling interest 14    (5)  
    989    4,894    1,381    CCS earnings 16,792    20,281   
                                                   
     
    Q4 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    CCS earnings 989 1,744 1,031 103 (328) (1,226) (335)
    Less: Identified items (2,778) (421) (651) (736) (99) (914) 45
    Less: CCS earnings attributable to non-controlling interest 106            
    Add: Identified items attributable to non-controlling interest —            
    Adjusted Earnings 3,661            
    Add: Non-controlling interest 106            
    Adjusted Earnings plus non-controlling interest 3,766 2,165 1,682 839 (229) (311) (380)
    Add: Taxation charge/(credit) excluding tax impact of identified items 3,371 635 2,618 266 (198) 97 (46)
    Add: Depreciation, depletion and amortisation excluding impairments 5,829 1,440 2,803 587 896 96 8
    Add: Exploration well write-offs 649 277 372        
    Add: Interest expense excluding identified items 1,213 54 201 17 16 2 923
    Less: Interest income 548 3 — — 10 7 529
    Adjusted EBITDA 14,281 4,568 7,676 1,709 475 (123) (24)
    Less: Current cost of supplies adjustment before taxation (75)     (2) (73)    
    Joint ventures and associates (dividends received less profit) 451 110 (22) 172 139 51 —
    Derivative financial instruments 319 120 (28) (8) 230 533 (527)
    Taxation paid (2,910) (635) (2,019) (130) 36 (41) (120)
    Other (1,461) 114 (486) (1,227) (313) 77 375
    (Increase)/decrease in working capital 2,407 114 (611) 845 1,394 353 312
    Cash flow from operating activities 13,162 4,391 4,509 1,363 2,032 850 16

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    Q3 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    CCS earnings 4,894 2,631 2,289 760 341 (481) (647)
    Less: Identified items (1,259) (240) (153) (422) (122) (319) (3)
    Less: CCS earnings attributable to non-controlling interest 126            
    Add: Identified items attributable to non-controlling interest —            
    Adjusted Earnings 6,028            
    Add: Non-controlling interest 126            
    Adjusted Earnings plus non-controlling interest 6,153 2,871 2,443 1,182 463 (162) (643)
    Add: Taxation charge/(credit) excluding tax impact of identified items 3,571 949 2,413 322 (73) (1) (39)
    Add: Depreciation, depletion and amortisation excluding impairments 5,578 1,369 2,691 564 862 86 6
    Add: Exploration well write-offs 150 2 148 — — — —
    Add: Interest expense excluding identified items 1,173 49 183 13 14 2 912
    Less: Interest income 619 5 8 — 25 — 581
    Adjusted EBITDA 16,005 5,234 7,871 2,081 1,240 (75) (346)
    Less: Current cost of supplies adjustment before taxation 665     334 331    
    Joint ventures and associates (dividends received less profit) (62) (146) (90) 51 63 61 —
    Derivative financial instruments 133 (373) 47 98 88 (106) 380
    Taxation paid (3,028) (814) (2,074) (241) 23 (33) 112
    Other (365) (32) (406) 275 107 (75) (234)
    (Increase)/decrease in working capital 2,665 (247) (78) 792 2,131 (136) 204
    Cash flow from operating activities 14,684 3,623 5,268 2,722 3,321 (364) 115
                                                   
     
    Q4 2023 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    CCS earnings 1,381 1,733 2,151 226 (1,828) (272) (629)
    Less: Identified items (6,033) (2,235) (909) (567) (1,857) (445) (19)
    Less: CCS earnings attributable to non-controlling interest 97            
    Add: Identified items attributable to non-controlling interest (11)            
    Adjusted Earnings 7,306            
    Add: Non-controlling interest 108            
    Adjusted Earnings plus non-controlling interest 7,414 3,968 3,060 794 29 173 (609)
    Add: Taxation charge/(credit) excluding tax impact of identified items 2,121 1,065 1,560 128 (271) (4) (358)
    Add: Depreciation, depletion and amortisation excluding impairments 5,986 1,457 2,951 569 915 89 6
    Add: Exploration well write-offs 243 63 180 — — — —
    Add: Interest expense excluding identified items 1,165 36 135 10 21 1 961
    Less: Interest income 595 4 14 1 24 7 544
    Adjusted EBITDA 16,335 6,584 7,872 1,500 670 253 (544)
    Less: Current cost of supplies adjustment before taxation 1,109     572 537    
    Joint ventures and associates (dividends received less profit) 246 208 (250) 32 225 29 1
    Derivative financial instruments (1,030) (1,596) 52 4 293 (268) 487
    Taxation paid (3,604) (731) (2,015) (282) (270) (413) 108
    Other (947) (229) 388 (508) (422) 146 (322)
    (Increase)/decrease in working capital 2,683 (639) (260) 1,593 1,191 (1,012) 1,810
    Cash flow from operating activities 12,575 3,597 5,787 1,767 1,150 (1,265) 1,540

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    Full year 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    CCS earnings 16,792 9,590 7,772 1,894 1,757 (1,229) (2,992)
    Less: Identified items (7,347) (1,800) (623) (1,991) (1,177) (732) (1,024)
    Less: CCS earnings attributable to non-controlling interest 442            
    Add: Identified items attributable to non-controlling interest 18            
    Adjusted Earnings 23,716            
    Add: Non-controlling interest 424            
    Adjusted Earnings plus non-controlling interest 24,139 11,390 8,395 3,885 2,934 (497) (1,968)
    Add: Taxation charge/(credit) excluding tax impact of identified items 15,013 3,520 9,865 1,305 364 87 (128)
    Add: Depreciation, depletion and amortisation excluding impairments 22,703 5,594 10,971 2,235 3,495 383 25
    Add: Exploration well write-offs 1,622 291 1,331        
    Add: Interest expense excluding identified items 4,697 189 720 52 70 6 3,660
    Less: Interest income 2,372 8 18 1 79 2 2,265
    Adjusted EBITDA 65,803 20,978 31,264 7,476 6,783 (22) (675)
    Less: Current cost of supplies adjustment before taxation 363     254 109    
    Joint ventures and associates (dividends received less profit) (328) (137) (946) 262 304 190 —
    Derivative financial instruments 1,472 (1,466) 24 59 219 3,012 (376)
    Taxation paid (12,002) (2,955) (7,851) (562) (146) (457) (31)
    Other (1,961) 23 (1,464) (616) (321) 152 264
    (Increase)/decrease in working capital 2,062 467 216 998 524 923 (1,065)
    Cash flow from operating activities 54,684 16,909 21,244 7,363 7,253 3,798 (1,882)
                                                   
     
    Full year 2023 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    CCS earnings 20,281 7,058 8,539 3,058 1,482 3,089 (2,944)
    Less: Identified items (8,252) (6,861) (1,267) (254) (2,135) 2,333 (69)
    Less: CCS earnings attributable to non-controlling interest 273            
    Add: Identified items attributable to non-controlling interest (11)            
    Adjusted Earnings 28,250            
    Add: Non-controlling interest 284            
    Adjusted Earnings plus non-controlling interest 28,534 13,919 9,806 3,312 3,617 756 (2,875)
    Add: Taxation charge/(credit) excluding tax impact of identified items 13,674 3,837 8,280 936 287 341 (8)
    Add: Depreciation, depletion and amortisation excluding impairments 23,106 5,756 11,309 2,048 3,582 392 19
    Add: Exploration well write-offs 867 121 746 — — — —
    Add: Interest expense excluding identified items 4,669 146 507 50 60 4 3,902
    Less: Interest income 2,313 6 27 9 57 12 2,201
    Adjusted EBITDA 68,538 23,773 30,622 6,337 7,489 1,481 (1,164)
    Less: Current cost of supplies adjustment before taxation 848     478 370    
    Joint ventures and associates (dividends received less profit) 79 241 (692) 117 310 102 3
    Derivative financial instruments (6,142) (4,668) 51 (14) 518 (1,988) (41)
    Taxation paid (13,712) (3,574) (8,470) (760) (467) (762) 322
    Other (865) (313) (142) (486) (138) 450 (237)
    (Increase)/decrease in working capital 7,145 2,061 82 845 172 3,701 284
    Cash flow from operating activities 54,191 17,520 21,450 5,561 7,513 2,984 (832)

    Identified Items

    Identified items comprise: divestment gains and losses, impairments, redundancy and restructuring, provisions for onerous contracts, fair value accounting of commodity derivatives and certain gas contracts and the impact of exchange rate movements and inflationary adjustments on certain deferred tax balances, and other items. Identified items in the tables below are presented on a net basis.

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    Q4 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Identified items included in Income/(loss) before taxation              
    Divestment gains/(losses) (288) (99) (66) (216) 42 51 —
    Impairment reversals/(impairments) (2,554) (523) (183) (493) (288) (1,065) (1)
    Redundancy and restructuring (175) (27) (62) (70) (5) (11) (1)
    Provisions for onerous contracts — — — — — — —
    Fair value accounting of commodity derivatives and certain gas contracts 209 136 (14) 58 (38) 67 —
    Other (200) — (165) (33) (2) — —
    Total identified items included in Income/(loss) before taxation (3,008) (514) (491) (753) (291) (958) (2)
    Less: total identified items included in Taxation charge/(credit) (230) (92) 160 (17) (191) (43) (47)
    Identified items included in Income/(loss) for the period              
    Divestment gains/(losses) (321) (96) (51) (247) 33 40 —
    Impairment reversals/(impairments) (2,170) (339) (152) (458) (224) (996) (1)
    Redundancy and restructuring (115) (16) (34) (52) (3) (8) (1)
    Provisions for onerous contracts — — — — — — —
    Fair value accounting of commodity derivatives and certain gas contracts 184 109 (4) 46 (17) 50 —
    Impact of exchange rate movements and inflationary adjustments on tax balances (210) (57) (199) — — — 46
    Other (147) (22) (212) (25) 113 — —
    Impact on CCS earnings (2,778) (421) (651) (736) (99) (914) 45
    Impact on CCS earnings attributable to non-controlling interest — — — — — — —
    Impact on CCS earnings attributable to Shell plc shareholders (2,778) (421) (651) (736) (99) (914) 45

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    Q3 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Identified items included in Income/(loss) before taxation              
    Divestment gains/(losses) (154) 1 (2) (110) (19) (20) (3)
    Impairment reversals/(impairments) (338) (6) (3) (195) (120) (14) —
    Redundancy and restructuring (552) (69) (189) (136) (141) (26) 10
    Provisions for onerous contracts (7) — — (7) — — —
    Fair value accounting of commodity derivatives and certain gas contracts (602) (252) (13) (78) 126 (385) —
    Other1 (136) — (141) (1) (11) 16 —
    Total identified items included in Income/(loss) before taxation (1,789) (327) (348) (526) (165) (430) 7
    Less: total identified items included in Taxation charge/(credit) (530) (87) (195) (104) (43) (111) 10
    Identified items included in Income/(loss) for the period              
    Divestment gains/(losses) (129) 1 (6) (84) (15) (23) (2)
    Impairment reversals/(impairments) (288) (4) (2) (179) (92) (10) —
    Redundancy and restructuring (397) (48) (138) (98) (101) (19) 7
    Provisions for onerous contracts (5) — — (5) — — —
    Fair value accounting of commodity derivatives and certain gas contracts (456) (213) (3) (56) 95 (279) —
    Impact of exchange rate movements and inflationary adjustments on tax balances 120 24 104 — — — (8)
    Other (105) — (108) — (8) 12 —
    Impact on CCS earnings (1,259) (240) (153) (422) (122) (319) (3)
    Impact on CCS earnings attributable to non-controlling interest — — — — — — —
    Impact on CCS earnings attributable to Shell plc shareholders (1,259) (240) (153) (422) (122) (319) (3)

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    Q4 2023 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Identified items included in Income/(loss) before taxation              
    Divestment gains/(losses) 222 (21) 134 (30) (33) 168 5
    Impairment reversals/(impairments) (5,348) (873) (988) (460) (2,391) (636) —
    Redundancy and restructuring (275) (1) (11) (128) (102) (31) (2)
    Provisions for onerous contracts — — — — — — —
    Fair value accounting of commodity derivatives and certain gas contracts (1,357) (1,708) 60 (47) 199 138 —
    Other (33) 57 (170) 2 77 — —
    Total identified items included in Income/(loss) before taxation (6,792) (2,545) (974) (664) (2,250) (361) 2
    Less: total identified items included in Taxation charge/(credit) (759) (309) (65) (96) (394) 84 22
    Identified items included in Income/(loss) for the period              
    Divestment gains/(losses) 227 (13) 128 (23) (26) 158 3
    Impairment reversals/(impairments) (3,935) (547) (454) (415) (1,968) (551) —
    Redundancy and restructuring (206) — (6) (96) (78) (24) (1)
    Provisions for onerous contracts — — — — — — —
    Fair value accounting of commodity derivatives and certain gas contracts (1,336) (1,587) 21 (34) 138 125 —
    Impact of exchange rate movements and inflationary adjustments on tax balances (363) 31 (373) — — — (21)
    Other (419) (119) (225) 2 77 (154) —
    Impact on CCS earnings (6,033) (2,235) (909) (567) (1,857) (445) (19)
    Impact on CCS earnings attributable to non-controlling interest (11) — — (11) — — —
    Impact on CCS earnings attributable to Shell plc shareholders (6,022) (2,235) (909) (556) (1,857) (445) (19)

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    Full year 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Identified items included in Income/(loss) before taxation              
    Divestment gains/(losses) (288) (100) 89 (400) 6 119 (3)
    Impairment reversals/(impairments) (5,051) (555) (362) (1,747) (1,205) (1,181) (1)
    Redundancy and restructuring (1,012) (106) (320) (296) (195) (97) 2
    Provisions for onerous contracts (24) (3) (14) (7) — — —
    Fair value accounting of commodity derivatives and certain gas contracts (1,012) (1,286) (58) 49 (117) 399 —
    Other1 (1,481) (126) (436) (1) 146 39 (1,103)
    Total identified items included in Income/(loss) before taxation (8,867) (2,176) (1,100) (2,402) (1,364) (720) (1,105)
    Less: total identified items included in Taxation charge/(credit) (1,521) (376) (477) (411) (187) 12 (81)
    Identified items included in Income/(loss) for the period              
    Divestment gains/(losses) (319) (96) 67 (386) 4 94 (2)
    Impairment reversals/(impairments) (4,371) (363) (323) (1,423) (1,176) (1,085) (1)
    Redundancy and restructuring (712) (71) (214) (215) (142) (71) 1
    Provisions for onerous contracts (19) (3) (11) (5) — — —
    Fair value accounting of commodity derivatives and certain gas contracts (849) (1,088) (14) 40 (86) 300 —
    Impact of exchange rate movements and inflationary adjustments on tax balances 363 (49) 313 — — — 99
    Other1 (1,440) (130) (440) (1) 223 30 (1,122)
    Impact on CCS earnings (7,347) (1,800) (623) (1,991) (1,177) (732) (1,024)
    Impact on CCS earnings attributable to non-controlling interest 18 — — — 18 — —
    Impact on CCS earnings attributable to Shell plc shareholders (7,365) (1,800) (623) (1,991) (1,195) (732) (1,024)

    1.Corporate includes reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These currency translation differences were previously recognised in other comprehensive income and accumulated in equity as part of accumulated other comprehensive income.

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    Full year 2023 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Identified items included in Income/(loss) before taxation              
    Divestment gains/(losses) 257 (22) 209 1 (46) 109 5
    Impairment reversals/(impairments) (8,300) (3,147) (1,187) (509) (2,690) (767) —
    Redundancy and restructuring (329) (1) (21) (150) (106) (32) (18)
    Provisions for onerous contracts (24) — — — (24) — —
    Fair value accounting of commodity derivatives and certain gas contracts (419) (4,755) 447 20 276 3,593 —
    Other 82 32 (615) 300 (43) 408 —
    Total identified items included in Income/(loss) before taxation (8,732) (7,892) (1,166) (339) (2,632) 3,311 (14)
    Less: total identified items included in Taxation charge/(credit) (481) (1,031) 100 (85) (497) 978 55
    Identified items included in Income/(loss) for the period              
    Divestment gains/(losses) 277 (14) 208 1 (35) 113 3
    Impairment reversals/(impairments) (6,219) (2,247) (642) (466) (2,195) (669) —
    Redundancy and restructuring (241) — (9) (113) (82) (24) (12)
    Provisions for onerous contracts (18) — — — (18) — —
    Fair value accounting of commodity derivatives and certain gas contracts (1,284) (4,407) 127 26 214 2,756 —
    Impact of exchange rate movements and inflationary adjustments on tax balances (355) — (295) — — — (60)
    Other (412) (193) (656) 298 (19) 158 —
    Impact on CCS earnings (8,252) (6,861) (1,267) (254) (2,135) 2,333 (69)
    Impact on CCS earnings attributable to non-controlling interest (11) — — (11) — — —
    Impact on CCS earnings attributable to Shell plc shareholders (8,240) (6,861) (1,267) (242) (2,135) 2,333 (69)

    The identified items categories above may include after-tax impacts of identified items of joint ventures and associates which are fully reported within “Share of profit/(loss) of joint ventures and associates” in the Consolidated Statement of Income, and fully reported as identified items included in Income/(loss) before taxation in the table above. Identified items related to subsidiaries are consolidated and reported across appropriate lines of the Consolidated Statement of Income. Only pre-tax identified items reported by subsidiaries are taken into account in the calculation of underlying operating expenses (Reference F).

    Provisions for onerous contracts: Provisions for onerous contracts that relate to businesses that Shell has exited or to redundant assets or assets that cannot be used.

    Fair value accounting of commodity derivatives and certain gas contracts: In the ordinary course of business, Shell enters into contracts to supply or purchase oil and gas products, as well as power and environmental products. Shell also enters into contracts for tolling, pipeline and storage capacity. Derivative contracts are entered into for mitigation of resulting economic exposures (generally price exposure) and these derivative contracts are carried at period-end market price (fair value), with movements in fair value recognised in income for the period. Supply and purchase contracts entered into for operational purposes, as well as contracts for tolling, pipeline and storage capacity, are, by contrast, recognised when the transaction occurs; furthermore, inventory is carried at historical cost or net realisable value, whichever is lower. As a consequence, accounting mismatches occur because: (a) the supply or purchase transaction is recognised in a different period, or (b) the inventory is measured on a different basis. In addition, certain contracts are, due to pricing or delivery conditions, deemed to contain embedded derivatives or written options and are also required to be carried at fair value even though they are entered into for operational purposes. The accounting impacts are reported as identified items.

    Impact of exchange rate movements and inflationary adjustments on tax balances represents the impact on tax balances of exchange rate movements and inflationary adjustments arising on (a) the conversion to dollars of the local currency tax base of non-monetary assets and liabilities, as well as losses (this primarily impacts the Upstream and Integrated Gas segments) and (b) the conversion of dollar-denominated inter-segment loans to local currency, leading to taxable exchange rate gains or losses (this primarily impacts the Corporate segment).

    Other identified items represent other credits or charges that based on Shell management’s assessment hinder the comparative understanding of Shell’s financial results from period to period.

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    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    B.    Adjusted Earnings per share

    Adjusted Earnings per share is calculated as Adjusted Earnings (see Reference A), divided by the weighted average number of shares used as the basis for basic earnings per share (see Note 4).

    C.    Cash capital expenditure

    Cash capital expenditure represents cash spent on maintaining and developing assets as well as on investments in the period. Management regularly monitors this measure as a key lever to delivering sustainable cash flows. Cash capital expenditure is the sum of the following lines from the Consolidated Statement of Cash Flows: Capital expenditure, Investments in joint ventures and associates and Investments in equity securities.

    See Note 2 “Segment information” for the reconciliation of cash capital expenditure.

    D.    Capital employed and Return on average capital employed

    Return on average capital employed (“ROACE”) measures the efficiency of Shell’s utilisation of the capital that it employs. Effective first quarter 2024, the definition of capital employed has been amended to reflect the deduction of cash and cash equivalents. In addition, the numerator applied to ROACE on an Adjusted Earnings plus non-controlling interest basis has been amended to remove interest on cash and cash equivalents for consistency with the revised capital employed definition. Comparative information has been revised to reflect the updated definition. Also, the presentation of ROACE on a net income basis has been discontinued, as this measure is not routinely used by management in assessing the efficiency of capital employed.

    The measure refers to Capital employed which consists of total equity, current debt, and non-current debt reduced by cash and cash equivalents.

    Management believes that the updated methodology better reflects Shell’s approach to managing capital employed, including the management of cash and cash equivalents alongside total debt and equity as part of the financial framework.

    In this calculation, the sum of Adjusted Earnings (see Reference A) plus non-controlling interest (NCI) excluding identified items for the current and previous three quarters, adjusted for after-tax interest expense and after-tax interest income, is expressed as a percentage of the average capital employed excluding cash and cash equivalents for the same period.

                           
     
    $ million Quarters
      Q4 2024 Q3 2024 Q4 2023
    Current debt 9,931 10,119 9,001
    Non-current debt 71,610 72,028 74,794
    Total equity 188,362 192,943 192,597
    Less: Cash and cash equivalents (38,774) (43,031) (40,246)
    Capital employed – opening 231,128 232,059 236,146
    Current debt 11,630 12,015 9,931
    Non-current debt 65,448 64,597 71,610
    Total equity 180,165 189,538 188,362
    Less: Cash and cash equivalents (39,110) (42,252) (38,774)
    Capital employed – closing 218,132 223,898 231,128
    Capital employed – average 224,630 227,979 233,637

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    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                           
     
    $ million Quarters
      Q4 2024 Q3 2024 Q4 2023
    Adjusted Earnings – current and previous three quarters (Reference A) 23,716 27,361 28,250
    Add: Income/(loss) attributable to NCI – current and previous three quarters 427 376 277
    Add: Current cost of supplies adjustment attributable to NCI – current and previous three quarters 14 56 (5)
    Less: Identified items attributable to NCI (Reference A) – current and previous three quarters 18 7 (11)
    Adjusted Earnings plus NCI excluding identified items – current and previous three quarters 24,139 27,787 28,534
    Add: Interest expense after tax – current and previous three quarters 2,701 2,698 2,728
    Less: Interest income after tax on cash and cash equivalents – current and previous three quarters 1,389 1,392 1,287
    Adjusted Earnings plus NCI excluding identified items before interest expense and interest income – current and previous three quarters 25,452 29,093 29,975
    Capital employed – average 224,630 227,979 233,637
    ROACE on an Adjusted Earnings plus NCI basis 11.3% 12.8% 12.8%

    E.    Net debt and gearing

    Net debt is defined as the sum of current and non-current debt, less cash and cash equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risk relating to debt, and associated collateral balances. Management considers this adjustment useful because it reduces the volatility of net debt caused by fluctuations in foreign exchange and interest rates, and eliminates the potential impact of related collateral payments or receipts. Debt-related derivative financial instruments are a subset of the derivative financial instrument assets and liabilities presented on the balance sheet. Collateral balances are reported under “Trade and other receivables” or “Trade and other payables” as appropriate.

    Gearing is a measure of Shell’s capital structure and is defined as net debt (total debt less cash and cash equivalents) as a percentage of total capital (net debt plus total equity).

                           
     
    $ million  
      December 31, 2024 September 30, 2024 December 31, 2023
    Current debt 11,630    12,015    9,931   
    Non-current debt 65,448    64,597    71,610   
    Total debt 77,078    76,613    81,541   
    Of which lease liabilities 28,702    25,590    27,709   
    Add: Debt-related derivative financial instruments: net liability/(asset) 2,469    1,694    1,835   
    Add: Collateral on debt-related derivatives: net liability/(asset) (1,628)   (821)   (1,060)  
    Less: Cash and cash equivalents (39,110)   (42,252)   (38,774)  
    Net debt 38,809    35,234    43,542   
    Total equity 180,165    189,538    188,362   
    Total capital 218,974    224,772    231,902   
    Gearing 17.7  % 15.7  % 18.8  %

    F.    Operating expenses and Underlying operating expenses

    Operating expenses

    Operating expenses is a measure of Shell’s cost management performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses.

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    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                                   
     
    Q4 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Production and manufacturing expenses 5,839 982 2,470 270 1,632 480 5
    Selling, distribution and administrative expenses 3,231 39 96 2,258 471 241 126
    Research and development 331 40 69 73 46 37 66
    Operating expenses 9,401 1,061 2,635 2,602 2,149 757 196
                                                   
     
    Q3 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Production and manufacturing expenses 6,138 1,164 2,394 367 1,766 453 (6)
    Selling, distribution and administrative expenses 3,139 (1) (39) 2,408 453 209 110
    Research and development 294 27 75 55 34 22 81
    Operating expenses 9,570 1,190 2,430 2,830 2,253 684 185
                                                   
     
    Q4 2023 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Production and manufacturing expenses 6,807 1,187 2,595 433 1,815 732 44
    Selling, distribution and administrative expenses1 3,621 39 109 2,520 530 271 153
    Research and development1 469 42 102 67 52 93 112
    Operating expenses 10,897 1,268 2,806 3,021 2,397 1,096 309
                                                   
     
    Full year 2024 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Production and manufacturing expenses 23,379 4,153 9,351 1,322 6,605 1,934 14
    Selling, distribution and administrative expenses 12,439 164 176 9,149 1,637 887 426
    Research and development 1,099 125 263 209 151 94 257
    Operating expenses 36,918 4,441 9,791 10,681 8,392 2,915 698
                                                   
     
    Full year 2023 $ million
      Total Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate
    Production and manufacturing expenses 25,240 4,529 9,186 1,463 7,394 2,610 58
    Selling, distribution and administrative expenses1 13,433 154 325 9,426 2,023 1,058 446
    Research and development1 1,287 126 318 252 181 96 314
    Operating expenses 39,960 4,808 9,829 11,141 9,598 3,763 818

    1.From the first quarter 2024, Wholesale commercial fuels forms part of Mobility with inclusion in the Marketing segment (previously Chemicals and Products segment). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact between Marketing and Chemicals and Products segments (see Note 2). Also, from the first quarter 2024, Shell’s longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments (see Note 2).

    Underlying operating expenses

    Underlying operating expenses is a measure aimed at facilitating a comparative understanding of performance from period to period by removing the effects of identified items, which, either individually or collectively, can cause volatility, in some cases driven by external factors.

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    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

                                       
         
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    9,401    9,570    10,897    Operating expenses 36,918    39,960   
    (174)   (552)   (274)   Redundancy and restructuring (charges)/reversal (1,009)   (325)  
    (88)   (154)   (58)   (Provisions)/reversal (454)   (434)  
    —    —    —    Other 252    —   
    (262)   (706)   (332)   Total identified items (1,210)   (758)  
    9,138    8,864    10,565    Underlying operating expenses 35,707    39,201   

    G.    Free cash flow and Organic free cash flow

    Free cash flow is used to evaluate cash available for financing activities, including dividend payments and debt servicing, after investment in maintaining and growing the business. It is defined as the sum of “Cash flow from operating activities” and “Cash flow from investing activities”.

    Cash flows from acquisition and divestment activities are removed from Free cash flow to arrive at the Organic free cash flow, a measure used by management to evaluate the generation of free cash flow without these activities.

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    13,162    14,684    12,575    Cash flow from operating activities 54,684    54,191   
    (4,431)   (3,857)   (5,657)   Cash flow from investing activities (15,154)   (17,734)  
    8,731    10,827    6,918    Free cash flow 39,530    36,457   
    805    194    612    Less: Divestment proceeds (Reference I) 2,793    3,091   
    1    —    —    Add: Tax paid on divestments (reported under “Other investing cash outflows”) 1    —   
    525    —    206    Add: Cash outflows related to inorganic capital expenditure1 776    2,522   
    8,453    10,633    6,511    Organic free cash flow2 37,514    35,888   

    1.Cash outflows related to inorganic capital expenditure includes portfolio actions which expand Shell’s activities through acquisitions and restructuring activities as reported in capital expenditure lines in the Consolidated Statement of Cash Flows.

    2.Free cash flow less divestment proceeds, adding back outflows related to inorganic expenditure.

    H.    Cash flow from operating activities and cash flow from operating activities excluding working capital movements

    Working capital movements are defined as the sum of the following items in the Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables.

    Cash flow from operating activities excluding working capital movements is a measure used by Shell to analyse its operating cash generation over time excluding the timing effects of changes in inventories and operating receivables and payables from period to period.

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    13,162    14,684    12,575    Cash flow from operating activities 54,684    54,191   
    131    2,705    4,088    (Increase)/decrease in inventories 1,273    6,325   
    751    4,057    (704)   (Increase)/decrease in current receivables 6,578    12,401   
    1,524    (4,096)   (701)   Increase/(decrease) in current payables1 (5,789)   (11,581)  
    2,407    2,665    2,683    (Increase)/decrease in working capital 2,062    7,145   
    10,755    12,019    9,891    Cash flow from operating activities excluding working capital movements 52,622    47,052   

    1.To further enhance consistency between working capital and the Balance Sheet and the Statement of Cash Flows, from January 1, 2024, onwards movements in current other provisions are recognised in ‘Decommissioning and other provisions’ instead of ‘Increase/(decrease) in current payables’. Comparatives for the fourth quarter 2023 and the full year 2023 have been reclassified accordingly by $653 million and $693 million respectively to conform with current period presentation.

             Page 37

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    I.    Divestment proceeds

    Divestment proceeds represent cash received from divestment activities in the period. Management regularly monitors this measure as a key lever to deliver free cash flow.

                                       
     
    Quarters $ million Full year
    Q4 2024 Q3 2024 Q4 2023   2024 2023
    493    94 540 Proceeds from sale of property, plant and equipment and businesses 1,621 2,565
    305    94 49 Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans 590 474
    6    6 24 Proceeds from sale of equity securities 582 51
    805    194 612 Divestment proceeds 2,793 3,091

    J.    Structural cost reduction

    The structural cost reduction target is used for the purpose of demonstrating how management drives cost discipline across the entire organisation, simplifying our processes and portfolio, and streamlining the way we work.

    Structural cost reduction describes the decrease in underlying operating expenses as a result of operational efficiencies, divestments, workforce reductions and other cost-saving measures that are expected to be sustainable compared with 2022 levels.

    The total change between periods in underlying operating expenses will reflect both structural cost reductions and other changes in spend, including market factors, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations.

    Structural cost reductions are stewarded internally to support management’s oversight of spending over time. 2025 target reflects annualised saving achieved by end-2025.

                           
     
    $ million
      2024 2023 Total1
    Underlying Operating expenses current year 35,707    39,201     
    Underlying Operating expenses previous year 39,201    39,456     
    Total decrease in Underlying operating expenses (3,494)   (255)   (3,749)  
    Of which:      
    Structural cost reduction (2,132)   (987)   (3,119)  
    (Decrease)/Increase of underlying operating expenses except structural cost reduction (1,362)   732    (630)  

    1.Structural cost reductions up to 2024 compared with 2022.

             Page 38

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

    CAUTIONARY STATEMENT

    All amounts shown throughout this Unaudited Condensed Financial Report are unaudited. All peak production figures in Portfolio Developments are quoted at 100% expected production. The numbers presented throughout this Unaudited Condensed Financial Report may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.

    The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this Unaudited Condensed Financial Report, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. “Subsidiaries”, “Shell subsidiaries” and “Shell companies” as used in this Unaudited Condensed Financial Report, refer to entities over which Shell plc either directly or indirectly has control. The terms “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

    Forward-Looking Statements

    This Unaudited Condensed Financial Report contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; “anticipate”; “believe”; “commit”; “commitment”; “could”; “estimate”; “expect”; “goals”; “intend”; “may”; “milestones”; “objectives”; “outlook”; “plan”; “probably”; “project”; “risks”; “schedule”; “seek”; “should”; “target”; “will”; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Unaudited Condensed Financial Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine war, and a significant cyber security breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this Unaudited Condensed Financial Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2023 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this Unaudited Condensed Financial Report and should be considered by the reader. Each forward-looking statement speaks only as of the date of this Unaudited Condensed Financial Report, January 30, 2025. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this Unaudited Condensed Financial Report.

    Shell’s Net Carbon Intensity

    Also, in this Unaudited Condensed Financial Report we may refer to Shell’s “Net Carbon Intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “Net Carbon Intensity” or NCI is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

    Shell’s Net-Zero Emissions Target

    Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

    Forward-Looking Non-GAAP measures

    This Unaudited Condensed Financial Report may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

    The contents of websites referred to in this Unaudited Condensed Financial Report do not form part of this Unaudited Condensed Financial Report.

    We may have used certain terms, such as resources, in this Unaudited Condensed Financial Report that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

    This Unaudited Condensed Financial Report contains inside information.

    January 30, 2025

             Page 39

    SHELL PLC
    4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS

         
    The information in this Unaudited Condensed Financial Report reflects the unaudited consolidated financial position and results of Shell plc. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.

    Contacts:

    – Sean Ashley, Company Secretary

    – Media: International +44 (0) 207 934 5550; USA +1 832 337 4355

    LEI number of Shell plc: 21380068P1DRHMJ8KU70

    Classification: Inside Information

             Page 40

    The MIL Network –