Category: Intelligence Agencies

  • MIL-OSI Video: Oak Ridge Boys Scam Warning

    Source: Federal Bureau of Investigation (FBI) (video statements)

    The Oak Ridge Boys warn their fans to be wary of scams targeting the elderly.

    https://www.youtube.com/watch?v=AS6xAOb1E2k

    MIL OSI Video

  • MIL-OSI Security: Parkersburg Man Sentenced to Prison for Role in Charleston Methamphetamine Trafficking Organization

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – Michael Dale Cain, 49, of Parkersburg, was sentenced today to eight years and one month in prison, to be followed by three years of supervised release, for conspiracy to distribute methamphetamine. Cain admitted to a role in a Drug Trafficking Organization (DTO) that distributed methamphetamine in the Charleston area.

    According to court documents and statements made in court, from in or about January 2024 to in or about May 2024, Cain conspired with others to distribute methamphetamine in Charleston and within the Southern District of West Virginia. On May 5, 2024, co-conspirator Anthony Michael Mowery arranged for Cain to travel to Charleston for the purpose of picking up approximately 3 pounds of methamphetamine from another co-conspirator, Kirt Ray King, that Cain intended to transport to Parkersburg and distribute to others. After Cain acquired the methamphetamine, he was stopped by law enforcement officers who searched his vehicle, seized the methamphetamine, and arrested Cain.

    King, 48, of Charleston, pleaded guilty on January 27, 2025, to conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine. Anthony Michael Mowery, 48, of Parkersburg, also pleaded guilty on January 27, 2025, to conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine. King and Mowery are scheduled to be sentenced on April 21, 2025.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).

    United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.

    The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-95.

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    MIL Security OSI

  • MIL-OSI Security: Former FBI Employee Sentenced for Paycheck Protection Program Fraud

    Source: Office of United States Attorneys

    SAN ANTONIO – A former FBI employee was sentenced in a federal court in San Antonio to three months of home confinement and five years of probation for one count of wire fraud related to fraudulent use of the Paycheck Protection Program (PPP).

    According to court documents, Christopher James Phillips, 41, of Schertz, formed Phillips Global Realty LLC on Dec. 20, 2019 and submitted a PPP application on May 29, 2020, using his FBI-issued credentials to confirm his identity. In his application, Phillips represented that he employed two individuals and had an average monthly payroll of $15,000. Additionally, he submitted an IRS Form 941 (Employer’s Quarterly Federal Tax Return) for the fourth quarter of 2019, claiming a payroll of $50,000 over the three-month period. IRS records indicate that Phillips did not file such a form any time between 2019 and 2022, meaning the Form 941 he submitted as part of his PPP loan application was fraudulent and the representations were false.

    Phillips also certified that PPP funds would be spent only on authorized expenses, to include payroll, utilities, rent and mortgage interest. On June 2, 2020, he received $37,500 in PPP funds. Six days later, on June 8, Phillips wired $25,000 to a personal trading account and subsequently lost all of it due to trading activities. On June 9, 2020, he made a $5,117 payment toward his personal auto loan. On June 16, 2020, he paid approximately $8,500 toward his home mortgage.

    Phillips was indicted Jan. 3, 2024 for one count of wire fraud and one count of engaging in monetary transaction over $10,000 using criminally derived proceeds. He was arrested Jan. 5, 2024 and released that day on a $30,000 bond. Phillips pleaded guilty to the wire fraud charge Sept. 18, 2024. In addition to his home confinement and probation, Phillips was ordered to pay $39,771 in restitution.

    “The United States government will aggressively prosecute criminals, even if those individuals work within our own ranks,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “As a result of his actions, Phillips is now a convicted felon and will spend the next five years under the watchful eye of the United States Probation Department. This sentencing should send a message to all government personnel who would consider using their position for personal gain. This office will carry out its duty and seek to hold you accountable for betraying the invaluable trust of the American people.”

    The FBI investigated the case.

    Assistant U.S. Attorney Justin Simmons prosecuted the case.

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    MIL Security OSI

  • MIL-OSI USA: New Jersey Man Convicted for Conspiring to Traffic Fentanyl-Related Substances and Launder Money

    Source: US State of Vermont

    A federal jury in Newark convicted a New Jersey man on Jan. 27 for conspiring to traffic fentanyl-related substances and launder money.

    According to court documents and evidence presented at trial, from approximately January 2014 through September 2020, William Panzera, 51, of North Haledon, and other members of a drug trafficking organization, agreed to import and distribute controlled substances and controlled substance analogues, including fentanyl analogues, methylenedioxymethamphetamine (MDMA), methylone, and ketamine. Co-conspirators ordered controlled substances and analogues from a source in China and paid those sources hundreds of thousands of dollars via wire transfer and cryptocurrency. The conspirators distributed the substances throughout New Jersey in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. Eight other defendants have pleaded guilty in the case.

    The jury convicted Panzera of conspiracy to distribute and possess with intent to distribute 100 grams or more of furanyl fentanyl and 100 grams or more of 4 fluoroisobutyryl fentanyl and conspiracy to commit international promotional money laundering. Panzera faces a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million for the drug trafficking conspiracy charge, and a maximum penalty of 20 years in prison and a fine of up to $500,000 for the money laundering conspiracy charge. He is scheduled to be sentenced on June 25. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Vikas Khanna for the District of New Jersey, and Special Agent in Charge Spiros Karabinas of Homeland Security Investigations (HSI) Newark made the announcement.

    HSI Newark is investigating the case. HSI Philadelphia, the FBI Newark Field Office, the U.S. Postal Inspection Service Newark Field Office, IRS Criminal Investigation, U.S. Customs and Border Protection, the Newark Police Department, and the Essex County Prosecutor’s Office provided valuable assistance.

    Money Laundering and Forfeiture Unit Chief Stephen Sola of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra for the District of New Jersey are prosecuting the case. Financial Investigator Kathryn Montemorra of the MLARS Special Financial Investigations Unit supported the investigation.

    This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

    MIL OSI USA News

  • MIL-OSI Security: U.S. Attorney’s Office Secures Sentencing of Las Cruces Man for Carjacking and Firearms Offenses

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Las Cruces man was sentenced to 10 years in federal prison for carjacking and firearms offenses stemming from a violent incident in February 2023.

    There is no parole in the federal system.

    According to court documents, on February 19, 2023, officers from the Las Cruces Police Department attempted to stop a black Cadillac sedan with no visible license plate. The vehicle refused to pull over and was later located parked in front of the Rack Room Shoes store on E. Lohman Ave.

    Officers observed Sergio Ivan Enriquez, 41, walking towards the Cadillac. Upon seeing the officers, Enriquez fled on foot. Shortly after, officers heard on the radio that an individual matching Enriquez‘s description had stolen a vehicle at gunpoint in the same parking lot.

    During the carjacking, Enriquez entered the victim’s vehicle through the front passenger door, demanding that the victim “get out or drive.” When the victim refused, Enriquez pulled out a gray handgun, forcing the victim to exit the vehicle. Enriquez then drove off in the car with the victim’s dog still inside.

    Later that day, authorities located the stolen Volkswagen, the dog, and Enriquez at a residence in Las Cruces. A search of the residence uncovered a gray handgun in the kitchen oven. Additionally, a shotgun was found in the Cadillac from which Enriquez had initially fled.

    At the time of the incident, Enriquez, previously convicted of child abuse in 2014, was prohibited from possessing firearms.

    Upon his release from prison, Enriquez will be subject to three 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 Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Las Cruces Police Department. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison prosecuted the case.

    # # #

    MIL Security OSI

  • MIL-OSI Security: Greenfield Man Sentenced to 15 Months’ Imprisonment for Paying Health Care Kickbacks

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

    Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that, on January 24, 2025, Mohammed Kazim Ali was sentenced to 15 months’ incarceration for paying healthcare kickbacks in violation of the Anti-Kickback Statute.  Ali was also ordered to pay over $2.2 million in restitution to Medicaid and Medicare as well as a $75,000 fine.

    Ali and his co-defendant, Justin Hanson, owned a Milwaukee-area clinical laboratory called Noah Associates.  According to court records, beginning in 2017, Ali and Hanson engaged in a three-year-long scheme to pay kickbacks to the owner of a Milwaukee substance use treatment clinic in exchange for referrals of Medicaid and Medicare patients for urine drug testing performed by Noah Associates.  Ali and Hanson paid over $400,000 in kickbacks to procure the tests.  The tests, however, were not ordered by any physician and were not medically necessary for the treatment of patients.  After one physician learned that his credentials were being used without his authorization to order the tests, the physician told Ali to stop.  Ali nonetheless continued to have Noah Associates accept and bill the government for tests falsely ordered under that physician’s credentials for months.  As a result of the scheme, Medicaid and Medicare paid Noah Associates over $2.2 million for the unnecessary tests.  Ali personally received over $800,000 from Noah Associates during the scheme.

    At sentencing, United States District Judge J.P. Stadtmueller emphasized the seriousness of Ali’s crime, including Ali’s manipulation and breach of trust of the Medicaid and Medicare programs to receive millions of dollars that were not truly earned.  Judge Stadtmueller further noted that Ali knew that his conduct was criminal yet still engaged in a long-running, creative fraud scheme—a decision that Judge Stadtmueller criticized as “beyond belief.”

    In addition to his sentence, Ali will also be excluded from participation in the Medicaid and Medicare programs and has shut down Noah Associates.  His co-defendant, Hanson, has also pleaded guilty for paying healthcare kickbacks and will be sentenced on March 21, 2025.

    “Paying kickbacks for patient referrals is illegal because, as this case demonstrates, kickbacks result in Medicaid and Medicare paying for unnecessary services,” said United States Attorney Haanstad.  “Rather than bill the government for tests that patients actually needed, Ali abused the Medicaid and Medicare programs for ill-gotten gains.  The United States Attorney’s Office is committed to prevent frauds against Medicaid and Medicare.”

    “This sentence demonstrates the FBI’s commitment to investigating individuals like Mr. Ali who erode the public’s trust in our healthcare systems,” said Special Agent in Charge Michael Hensle of the FBI Milwaukee Field Office. “The FBI will continue to work with our law enforcement partners to ensure that those responsible for healthcare fraud are exposed and brought to justice. The safety and well-being of Wisconsin residents remains our highest priority.”

    “Individuals and medical providers who accept kickbacks in exchange for the referral of patients covered under a Federal health care program place personal profit ahead of patient care, which can ultimately lead to the delivery of costly, medically unnecessary services,” said Mario M. Pinto, of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region.  “Our agency is committed to working with our law enforcement partners to bring those who violate laws intended to protect patients, and our Federal health care programs, to justice.”

    The Federal Bureau of Investigation and the Office of the Inspector General, Department of Health and Human Services investigated the case.  Assistant United States Attorneys Michael Carter and Julie Stewart handled the prosecution.   

    # # #

    For further information contact:

    Public Information Officer

    Kenneth.Gales@usdoj.gov

    (414) 297-1700

    Follow us on Twitter  

    MIL Security OSI

  • MIL-OSI Security: New Jersey Man Convicted for Conspiring to Traffic Fentanyl-Related Substances and Launder Money

    Source: United States Attorneys General 4

    A federal jury in Newark convicted a New Jersey man on Jan. 27 for conspiring to traffic fentanyl-related substances and launder money.

    According to court documents and evidence presented at trial, from approximately January 2014 through September 2020, William Panzera, 51, of North Haledon, and other members of a drug trafficking organization, agreed to import and distribute controlled substances and controlled substance analogues, including fentanyl analogues, methylenedioxymethamphetamine (MDMA), methylone, and ketamine. Co-conspirators ordered controlled substances and analogues from a source in China and paid those sources hundreds of thousands of dollars via wire transfer and cryptocurrency. The conspirators distributed the substances throughout New Jersey in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. Eight other defendants have pleaded guilty in the case.

    The jury convicted Panzera of conspiracy to distribute and possess with intent to distribute 100 grams or more of furanyl fentanyl and 100 grams or more of 4 fluoroisobutyryl fentanyl and conspiracy to commit international promotional money laundering. Panzera faces a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million for the drug trafficking conspiracy charge, and a maximum penalty of 20 years in prison and a fine of up to $500,000 for the money laundering conspiracy charge. He is scheduled to be sentenced on June 25. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Vikas Khanna for the District of New Jersey, and Special Agent in Charge Spiros Karabinas of Homeland Security Investigations (HSI) Newark made the announcement.

    HSI Newark is investigating the case. HSI Philadelphia, the FBI Newark Field Office, the U.S. Postal Inspection Service Newark Field Office, IRS Criminal Investigation, U.S. Customs and Border Protection, the Newark Police Department, and the Essex County Prosecutor’s Office provided valuable assistance.

    Money Laundering and Forfeiture Unit Chief Stephen Sola of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra for the District of New Jersey are prosecuting the case. Financial Investigator Kathryn Montemorra of the MLARS Special Financial Investigations Unit supported the investigation.

    This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

    MIL Security OSI

  • MIL-OSI Security: Michigan Man Charged with Drug Distribution and Loan Fraud

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

    BOSTON – A Michigan man has been charged and has agreed to plead guilty in connection with a conspiracy to import and sell illegal pharmaceuticals, including opioids, and to fund the operation of the scheme by fraudulently obtaining a Covid pandemic relief loan.

    Donald Nchamukong, 37, was charged by Information with conspiracy to smuggle goods into the United States, to commit loan fraud and to distribute controlled substances.  Nchamukong will make an initial appearance in federal court in Boston on a date to be scheduled by the Court.

    According to the charging documents, starting in 2019 and continuing to 2022, Nchamukong and a co-conspirator, Doyal Kalita, conspired to distribute drugs to persons in the United States over the internet and using call centers in India. Nchamukong allegedly used shell companies, including a purported dietary supplements company and an auto parts supplier, and associated bank and merchant accounts to process sales of illegal foreign drugs, including the Schedule IV opioid, tramadol. Nchamukong and Kalita also received shipments of tramadol from India and reshipped the drug to customers across the United States, including in Massachusetts. When the Covid-19 pandemic hit, Nchamukong and Kalita allegedly fraudulently obtained a $200,000 Economic Injury Disaster Loan to fund their illegal drug scheme.  

    Kalita was convicted in 2024 and sentenced to 10 years in prison for orchestrating the online drug distribution scheme and a technical support fraud scheme and related money laundering.

    The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000, or twice the monetary gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Leah B. Foley; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Fernando P. McMillan, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations made the announcement today. Valuable assistance was provided by Homeland Security Investigations in New York, Small Business Administration and the United States Attorney’s Office for the Eastern District of New York. Assistant U.S. Attorney Kriss Basil, Deputy Chief of the Securities, Financial, and Cyber Fraud Unit, is prosecuting the case.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, pleasehttps://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

    The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI

  • MIL-OSI USA News: Press Briefing by Press Secretary Karoline Leavitt

    Source: The White House

    1:06 P.M. EST

         MS. LEAVITT:  Good afternoon, everybody. 

    Q    Good afternoon.

    MS. LEAVITT:  How are we?  Good to see all of you.  It’s an honor to be here with all of you.  A lot of familiar faces in the room, a lot of new faces.

    And President Trump is back, and the golden age of America has most definitely begun. 

    The Senate has already confirmed five of President Trump’s exceptional Cabinet nominees: Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, CIA Director John Ratcliffe, Homeland Security Secretary Kristi Noem, and Treasury Secretary Scott Bessent.  It is imperative that the Senate continues to confirm the remainder of the president’s well-qualified nominees as quickly as possible.

    As you have seen during the past week, President Trump is hard at work fulfilling the promises that he made to the American people on the campaign trail.  Since taking the oath of office, President Trump has taken more than 300 executive actions; secured nearly $1 trillion in U.S. investments; deported illegal alien rapists, gang members, and suspected terrorists from our homeland; and restored common sense to the federal government.

    I want to take a moment to go through some of these extraordinary actions. 

    On day one, President Trump declared a national emergency at our southern border to end the four-year-long invasion of illegal aliens under the previous administration.  Additionally, President Trump signed an executive order to end catch and release and finish construction of his effective border wall.  By using every lever of his federal power, President Trump has sent a loud and clear message to the entire world: America will no longer tolerate illegal immigration. 

    And this president expects that every nation on this planet will cooperate with the repatriation of their citizens, as proven by this weekend, when President Trump swiftly directed his team to issue harsh and effective sanctions and tariffs on the Colombian government upon hearing they were denied a U.S. military aircraft full of their own citizens who were deported by this administration.  Within hours, the Colombian government agreed to all of President Trump’s demands, proving America is once again respected on the world stage.

    So, to foreign nationals who are thinking about trying to illegally enter the United States, think again.  Under this president, you will be detained, and you will be deported. 

         Every day, Americans are safer because of the violent criminals that President Trump’s administration is removing from our communities.

    On January 23rd, ICE New York arrested a Turkish national for entry without inspection who is a known or suspected terrorist.  On January 23rd, ICE San Francisco arrested a citizen of Mexico unlawfully present in the United States who has been convicted of continuous sexual abuse of a child aged 14 years or younger.  ICE Saint Paul has arrested a citizen of Honduras who was convicted of fourth-degree criminal sexual conduct with a minor.  ICE Buffalo arrested a citizen of Ecuador who has been convicted of rape. 

    ICE Boston arrested a citizen of the Dominican Republic who has a criminal conviction for second-degree murder.  This criminal was convicted of murder for beating his pregnant wife to death in front of her five-year-old son. 

         And ICE Saint Paul also arrested a citizen of Mexico who was convicted of possessing pornographic material of a minor on a work computer.

    These are the heinous individuals that this administration is removing from American communities every single day.  And to the brave state and local law enforcement officers, CBP, and ICE agents who are helping in the facilitation of this deportation operation, President Trump has your back and he is grateful for your hard work.

    On the economic front, President Trump took immediate action to lower costs for families who are suffering from four long years of the Biden administration’s destructive and inflationary policies.  President Trump ordered the heads of all executive departments and agencies to help deliver emergency price relief to the American people, untangle our economy from Biden’s regulatory constraints, and end the reckless war on American energy.

    President Trump also signed sweeping executive orders to end the weaponization of government and restore common sense to the federal bureaucracy.  He directed all federal agencies to terminate illegal diversity, equity, and inclusion programs to help return America to a merit-based society.

    President Trump also signed an executive order declaring it is now the policy of the federal government that there are only two sexes: male and female.  Sanity has been restored.

    Before I take your questions, I would like to point out to — all of you once again have access to the most transparent and accessible president in American history.  There has never been a president who communicates with the American people and the American press corps as openly and authentically as the 45th and now 47th president of the United States. 

    This past week, President Trump has held multiple news conferences, gaggled on Air Force One multiple times, and sat down for a two-part interview on Fox News, which aired last week.  As Politico summed it up best, “Trump is everywhere again,” and that’s because President Trump has a great story to tell about the legendary American revival that is well underway.

    And in keeping with this revolutionary media approach that President Trump deployed during the campaign, the Trump White House will speak to all media outlets and personalities, not just the legacy media who are seated in this room, because apporting — according to recent polling from Gallup, Americans’ trust in mass media has fallen to a record low.  Millions of Americans, especially young people, have turned from traditional television outlets and newspapers to consume their news from podcasts, blogs, social media, and other independent outlets.

    It’s essential to our team that we share President Trump’s message everywhere and adapt this White House to the new media landscape in 2025.  To do this, I am excited to announce the following changes will be made to this historic James S. Brady Briefing Room, where Mr. Brady’s legacy will endure.

    This White House believes strongly in the First Amendment, so it’s why our team will work diligently to restore the press passes of the 440 journalists whose passes were wrongly revoked by the previous administration. 

    We’re also opening up this briefing room to new media voices who produce news-related content and whose outlet is not already represented by one of the seats in this room.  We welcome independent journalists, podcasters, social media influencers, and content creators to apply for credentials to cover this White House.  And you can apply now on our new website, WhiteHouse.gov/NewMedia. 

    Starting today, this seat in the front of the room, which is usually occupied by the press secretary staff, will be called the “new media” seat.  My team will review the applications and give credentials to new media applicants who meet our criteria and pass United States Secret Service requirements to enter the White House complex.

    So, in light of these announcements, our first questions for today’s briefing will go to these new media members whose outlets, despite being some of the most viewed news websites in the country, have not been given seats in this room. 

    And before I turn to questions, I do have news directly from the president of the United States that was just shared with me in the Oval Office from President Trump directly — an update on the New Jersey drones: After research and study, the drones that were flying over New Jersey in large numbers were authorized to be flown by the FAA for research and various other reasons. 

    Many of these drones were also hobbyists — recreational and private individuals that enjoy flying drones.  In meanti- — in the — in time, it got worse, due to curiosity.  This was not the enemy.  A — a statement from the president of the United States to start this briefing with some news.

    And with that, I will turn it over to questions, and we will begin with our new media members: Mike Allen from Axios, Matt Boyle from Breitbart. 

         Mike, why don’t you go ahead.

    Q    Thank you very much.  Karoline, does the president see anything fishy about DeepSeek, either its origins or its cost?  And could China’s ability to make these models quicker, cheaper affect our thinking about expanding generation data centers, chip manufacturing?

    MS. LEAVITT:  Sure.  The president was asked about DeepSeek last night on Air Force One when he gaggled for, I think, the third or fourth time throughout the weekend with members of the traveling press corps.  The president said that he believes that this is a wake-up call to the American AI industry.  The last administration sat on their hands and allowed China to rapidly develop this AI program.

    And so, President Trump believes in restoring American AI dominance, and that’s why he took very strong executive action this past week to sign executive orders to roll back some of the onerous regulations on the AI industry.  And President Trump has also proudly appointed the first AI and crypto czar at this White House, David Sacks, whom I spoke with yesterday — very knowledgeable on this subject.  And his team is here working every single day to ensure American AI dominance.

    As for the national security implications, I spoke with NSC this morning.  They are looking into what those may be, and when I have an update, I will share it with you, Mike.

    Q    And, Karoline, you say “restore” U.S. dominance.  Is there fear that the U.S. either is falling or has fallen behind?  And how would the president make sure the U.S. stays ahead?

    MS. LEAVITT:  No.  The president is confident that we will restore American dominance in AI. 

    Matt.

    Q    Yeah.  So, Karoline, first off, thank you to you and President Trump for actually giving voices to new media outlets that represent millions and millions of Americans.  The thing I would add — the — I’ve got a two-part question for you.  The first is just: Can you expand upon what steps the White House is going to take to bring more voices, not less — which is what our founder, Andrew Breitbart, believed in — into this room, where they rightly belong?

    MS. LEAVITT:  Yeah, absolutely.  And as I said in my opening statement, Matt, it is a priority of this White House to honor the First Amendment.  And it is a fact that Americans are consuming their news media from various different platforms, especially young people.  And as the youngest press secretary in history, thanks to President Trump, I take great pride in opening up this room to new media voices to share the president’s message with as many Americans as possible.

    In doing so, number one, we will ensure that outlets like yours — Axios and Breitbart, which are widely respected and viewed outlets — have an actual seat in this room every day.  We also, again, encourage anybody in this country — whether you are a TikTok content creator, a blogger, a podcaster — if you are producing legitimate news content, no matter the medium, you will be allowed to apply for press credentials to this White House. 

    And as I said earlier, our new media website is WhiteHouse.gov/NewMedia, and so we encourage people to apply.  Again, as long as you are creating news-related content of the day and you’re a legitimate independent journalist, you’re welcome to cover this White House. 

    Q    And secondly, Karoline, you sa- — you laid out several of the actions that President Trump has taken.  Obviously, it’s a stark contrast to the previous administration and a breakneck speed from President Trump.  Can we expect that pace to continue as the hun- — the — you know, the first 100 days moves along here and beyond that?

    MS. LEAVITT:  Absolutely.  There is no doubt President Trump has always been the hardest working man in politics.  I think that’s been proven over the past week.  This president has, again, signed more than 300 executive orders.  He’s taken historic action. 

    I gaggled aboard Air Force One to mark the first 100 days of this administration — 4:00 p.m. last Friday — first 100 hours, rather.  And this president did more in the first 100 hours than the previous president did in the first 100 days. 

    So, President Trump, I think you can all expect to — for him to continue to work at this breakneck speed.  So, I hope you’re all ready to work very hard.  I know that we are.

    Zeke Miller.

    Q    Thanks, Karoline.  A question that we’ve asked your predecessors of both parties in this job.  When you’re up here in this briefing room speaking to the American public, do you view yourself and your role as speaking on — advocating on behalf of the president, or providing the unvarnished truth that is, you know, not to lie, not to obfuscate to the American people?

    MS. LEAVITT:  I commit to telling the truth from this podium every single day.  I commit to speaking on behalf of the president of the United States.  That is my job. 

    And I will say it’s very easy to speak truth from this podium when you have a president who is implementing policies that are wildly popular with the American people, and that’s exactly what this administration is doing.  It’s correcting the lies and the wrongs of the past four years, many of the lies that have been told to your faces in this very briefing room.  I will not do that.

    But since you brought up truth, Zeke, I would like to point out, while I vow to provide the truth from this podium, we ask that all of you in this room hold yourselves to that same standard.  We know for a fact there have been lies that have been pushed by many legacy media outlets in this country about this president, about his family, and we will not accept that.  We will call you out when we feel that your reporting is wrong or there is misinformation about this White House. 

    So, yes, I will hold myself to the truth, and I expect everyone in this room to do the same. 

    Q    And, Karoline, just on a substantive question.  Yesterday, the White House Office of Management and Budget directed an across-the-board freeze with — with some exceptions for individual assistance.  We understand just federal grants.

    MS. LEAVITT:  Right.

    Q    It’s caused a lot of confusion around the country among Head Start providers, among providers — from services to homeless veterans, provid- — you know, Medicaid providers, states saying they’re having trouble accessing the portal.  Could you put — help us clear up some confusion —

    MS. LEAVITT:  Yes.

    Q    — give some certainty to folks?  And then also, is that uncertainty — how does that uncertainty service the president’s voters?

    MS. LEAVITT:  Well, I think there’s only uncertainty in this room amongst the media.  There’s no uncertainty in this building. 

    So, let me provide the certainty and the clarity that all of you need.  This is not a blanket pause on federal assistance in grant programs from the Trump administration.  Individual assistance, that includes — I’m not naming everything that’s included, but just to give you a few examples — Social Security benefits, Medicare benefits, food stamps, welfare benefits — assistance that is going directly to individuals will not be impacted by this pause. 

    And I want to make that very clear to any Americans who are watching at home who may be a little bit confused about some of the media reporting: This administration — if you are receiving individual assistance from the federal government, you will still continue to receive that. 

    However, it is the responsibility of this president and this administration to be good stewards of taxpayer dollars.  That is something that President Trump campaigned on.  That’s why he has launched DOGE, the Department of Government Efficiency, who is working alongside OMB.  And that’s why OMB sent out this memo last night, because the president signed an executive order directing OMB to do just this.  And the reason for this is to ensure that every penny that is going out the door is not conflicting with the executive orders and actions that this president has taken. 

    So, what does this pause mean?  It means no more funding for illegal DEI programs.  It means no more funding for the Green New Scam that has ta- — cost American taxpayers tens of billions of dollars.  It means no more funding for transgenderism and wokeness across our federal bureaucracy and agencies.  No more funding for Green New Deal social engineering policies.  Again, people who are receiving individual asintan- — assistance, you will continue to receive that.

    And President Trump is looking out for you by issuing this pause because he is being good steward of your taxpayer dollars.

    Q    Thanks, Karoline. 

    MS. LEAVITT:  Sure.

    Q    How long is this pause going to last?  And how is the Trump administration recommending that organizations that rely on federal funding make payroll, pay their rent in the meantime?

    MS. LEAVITT:  It is a temporary pause, and the Office of Management and Budget is reviewing the federal funding that has been going out the door, again, not for individual assistance, but for all of these other programs that I mentioned.

    I also spoke with the incoming director of OMB this morning, and he told me to tell all of you that the line to his office is open for other federal government agencies across the board, and if they feel that programs are necessary and in line with the president’s agenda, then the Office of Management and Budget will review those policies. 

    I think this is a very responsible measure.  Again, the past four years, we’ve seen the Biden administration spend money like drunken sailors.  It’s a big reason we’ve had an inflation crisis in this country, and it’s incumbent upon this administration to make sure, again, that every penny is being accounted for honestly.

    Q    Why impose this pause with so little notice?  Why not give organizations more time to plan for the fact that they are about to lose, in some cases, really crucial federal funding —

    MS. LEAVITT:  There was —

    Q    — at least for a — for a period of time?

    MS. LEAVITT:  There was notice.  It was the executive order that the president signed. 

    There’s also a freeze on hiring, as you know; a regulatory freeze; and there’s also a freeze on foreign aid.  And this is a — again, incredibly important to ensure that this administration is taking into consideration how hard the American people are working.  And their tax dollars actually matter to this administration. 

    You know, just during this pause, DOGE and OMB have actually found that there was $37 million that was about to go out the door to the World Health Organization, which is an organization, as you all know, that President Trump, with the swipe of his pen in that executive order, is — no longer wants the United States to be a part of.  So, that wouldn’t be in line with the president’s agenda. 

    DOGE and OMB also found that there was about to be 50 million taxpayer dollars that went out the door to fund condoms in Gaza.  That is a preposterous waste of taxpayer money. 

    So, that’s what this pause is focused on: being good stewards of tax dollars. 

    Q    And so, this doesn’t affect —

    MS. LEAVITT:  Jennifer.

    Q    — Meals on Wheels or Head Start or disaster aid?

    MS. LEAVITT:  Again, it does not affect individual assistance that’s going to Americans.

    Q    To follow up on Nancy, do you think there will be a list of who is affected and how much money is affected?  How — how will these contractors and organizations know if they are actually being — having their funding frozen?

    And then, secondly, if you’re willing, can you just clarify, is the end goal of this to essentially challenge Congress or to — to prove that the president can withhold federal funding?  Is — in other words, is this an attempt to pick a fight to prove that he can do this?

    MS. LEAVITT:  No, absolutely not.  As it says right here in the memo, which I have — and I’d encourage all of you to read it — it says, “The American people elected President Trump to be the president of the United States and gave him a mandate to increase the impact of every federal dollar.”  “This memo requires federal agencies to identify and review all Federal financial assistance programs and supporting activities consistent with the president’s policies and requirements.” 

    The American people gave President Trump an overwhelming mandate on November 5th, and he’s just trying to ensure that the tax money going out the door in this very bankrupt city actually aligns with the will and the priorities of the American people. 

    (Cross-talk.)

    Brian Glenn.

    Q    Yes.  Welcome. 

    MS. LEAVITT:  Thank you.

    Q    You look great.  You’re doing a great job. 

    MS. LEAVITT:  Thank you.

    Q    You talked about transparency.  And some of us in this room know how just transparent President Trump has been the last five or six years; I think you’ll do the same. 

    My question is, do you think this latest incident with the president of Colombia is indicative of the global, powerful respect they have for President Trump moving forward not only to engage in — in economic diplomacy with these countries but also world peace?

    MS. LEAVITT:  Absolutely.  I’ll echo the answer that the president gave on Air Force One last night when he was asked a very similar question by one of your colleagues in the media: This signifies peace through strength is back, and this president will not tolerate illegal immigration into America’s interior. 

    And he expects every nation on this planet, again, to cooperate with the repatriation of their citizens who illegally entered into our country and broke America’s laws.  Won’t be tolerated. 

    And as you saw, the Colombian government quickly folded and agreed to all of President Trump’s demands.  Flights are underway once again.

    (Cross-talk.)

    Diana.

    Q    Two questions on deportations, if I may.  President Trump had said on the campaign trail that he would deport pro-Hamas students who are here on visas, and on his first day in office, he signed an executive order that said, quote, “The U.S. must ensure that admitted aliens and aliens otherwise already present in the U.S. do not bear hostile attitudes toward its citizens, culture, government, institutions, or founding principles.”  So, should we take this executive order as Trump saying he would be open to de- — deporting those students who are here on visas, but, you know, hold pro-Hamas sympathies?

    MS. LEAVITT:  The president is open to deporting individuals who have broken our nation’s immigrations laws.  So, if they are here illegally, then certainly he is open to deporting them, and that’s what this administration is hard at work at doing. 

    We receive data from DHS and from ICE every single day.  From what we hear on the ground, ICE agents are feeling incredibly empowered right now because they actually have a leader in this building who is supporting them in doing their jobs that they were hired to do, which is to detain, arrest, and deport illegal criminals who have invaded our nation’s borders over the past four years.  That’s what the president is committed to seeing. 

    Q    One more. 

    MS. LEAVITT:  Peter.
        
         Q    Just following up on that, Karoline —

    Q    Karoline, if I could ask you very quickly, just following up on the question on immigration.  First, President Trump, during the course of the campaign in 2024, said the following about illegal im- — immigration.  He said, “They’re going back home where they belong, and we start with the criminals.  There are many, many criminals.”  NBC News has learned that ICE arrested 1,179 undocumented immigrants on Sunday, but nearly half of them — 566 of the migrants — appear to have no prior criminal record besides entering the country illegally. 

    MS. LEAVITT:  (Laughs.)

    Q    Is the president still focused exclusiv- — which is a civil crime, not a — not a — it’s not criminal —

    MS. LEAVITT:  It’s a federal crime. 

    Q    It’s a fed- — so, I’m asking though, he said he was going to focus on those violent offenders first.  So, is violent offenders no longer the predicate for these people to be deported?

    MS. LEAVITT:  The president has said countless times on the campaign trail — I’ve been with him at the rallies; I know you’ve been there covering them too, Peter — that he is focused on launching the largest mass deportation operation in American history of illegal criminals. 

    And if you are an individual, a foreign national, who illegally enters the United States of America, you are, by definition, a criminal.  And so, therefore —

    Q    So, to be clear, it’s not exclusively —

    MS. LEAVITT:  — you are subject deportation. 

    Q    I apologize for interrupting.  So, to be clear, it’s not — violent criminals do not receive precedence in terms of the deportations taking place?

    MS. LEAVITT:  The president has also said — two things can be true at the same time.  We want to deport illegal criminals, illegal immigrants from this country.  But the president has said that, of course, the illegal dr- — criminal drug dealers, the rapists, the murderers, the individuals who have committed heinous acts on the interior of our country and who have terrorized law-abiding American citizens, absolutely, those should be the priority of ICE.  But that doesn’t mean that the other illegal criminals who entered our nation’s borders are off the table. 

    Q    Understood.  Then let me ask you a separate question about the confusion that still exists across the country right now as it relates to the — the freeze — or the pause, as it’s described.  President Trump, of course, ran — one of the key policy items was that he was going to lower prices, lower the cost of everything from groceries, as he often said.  But in many of the cases, it would seem that some of these moves could raise prices for real Americans on everything from low-income heating — that program; childcare programs.  Will nothing that the president is doing here, in terms of the freeze in these programs, raise prices on ordinary Americans?

    MS. LEAVITT:  What particular actions are you referring to that would —

    Q    I’m referring to LHEAP right now.  That’s the low-income heating program, for example.  We can talk about — there’s no clarity, so I could refer to a lot of them.  We don’t know what they are specifically.  Can you tell us that LHEAP — that LIHEAP is not one of those affected?

    MS. LEAVITT:  So, you’re asking a hypoc- — -thetical based on programs that you can’t even identify?

    Q    No, I just identified — I —

    MS. LEAVITT:  What I can tell you is that the —

    Q    Well, just to be — just to be clear, since you guys haven’t identified, let’s do it together, just for Americans at home.  Medicaid, is that affected?

    MS. LEAVITT:  I gave you a list of examples — Social Security, Medicare, welfare benefits —

    Q    Medicaid too, correct?

    MS. LEAVITT:  — food stamps — that will not be impacted by this federal pause.  I can get you the full list after this briefing from the Office of Management and Budget.

    But I do want to address the cost cutting, because that’s certainly very important, and — and cutting the cost of living in this country.  President Trump has taken historic action over the past week to do that.  He actually signed a memorandum to deliver emergency price relief for American families, which took a number of actions.  I can walk you through those. 

    He also repealed many onerous Biden administration regulations.  We know, over the past four years, American households has been essentially taxed $55,000 in regulations from the previous administration.  President Trump, with the swipe of his pen, rescinded those, which will ultimately put more money back in the pockets of the American people.  So, deregulation is a big deal. 

    And then, when it comes to energy, I mean, the president signed an executive order to declare a national energy emergency here at home, which is going to make America energy dominant.  We know that energy is one of the number-one drivers of inflation, and so that’s why the president wants to increase our energy supply: to bring down costs for Americans.  The Trump energy boom is incoming, and Americans can expect that.

    Q    Please share that memo.  Thank you.

    MS. LEAVITT:  I will.

    (Cross-talk.)

    Q    Karoline, I think — some of the confusion, I think, may be here with this pause on federal funding.  You’ve made it clear you’re not stopping funds that go directly to individuals, but there certainly are lots of organizations that receive funding and then may pass along a benefit — Meals on Wheels, for one.  They provide meals for over 2.2 million seniors. 

    What is the president’s message to Americans out there, many of whom supported him and voted for him, who are concerned that this is going to impact them directly, even if, as you said, the funding isn’t coming directly to their wallet?

    MS. LEAVITT:  I have now been asked and answered this question four times.  To individuals at home who receive direct assistance from the federal government, you will not be impacted by this federal freeze.  In fact, OMB just sent out a memo to Capitol Hill with Q and A to — to clarify some of the questions and the answers that all of you are a- — are asking me right now. 

    Again, direct assistance will not be impacted.  I’ve been asked and answered about this OMB memo.  There’s many other topics of the day. 

    Jacqui Heinrich. 

    Q    But on indirect assistance, Karoline —

    Q    Thank you, Karoline.

    Q    — if it’s going to another organization and then trickling down?

    MS. LEAVITT:  Direct assistance that is in the hands of the American people will not be impacted. 

    Again, as I said to Peter, we will continue to provide that list as it comes to fruition.  But OMB right now is focused on analyzing the federal government’s spending, which is exactly what the American people elected President Trump to do. 

    (Cross-talk.)

    Q    Thank you, Karoline.

    Q    And one question on immigration, Karoline.  On immigration. 

    Q    Thank you, Karo- —

    Q    Of the 3,500 arrests ICE has made so far since President Trump came back into office, can you just tell us the numbers?  How many have a criminal record versus those who are just in the country illegally.

    MS. LEAVITT:  All of them, because they illegally broke our nation’s laws, and, therefore, they are criminals, as far as this administration goes.  I know the last administration didn’t see it that way, so it’s a big culture shift in our nation to view someone who breaks our immigration laws as a criminal.  But that’s exactly what they are. 

    Jacqui.

    (Cross-talk.)

    Q    Karoline, on tariffs.

    Q    But you made a point of going with the worst first. 

    Q    On tariffs.

    Q    They all have a criminal record?

    Q    And welcome to the briefing room.

    MS. LEAVITT:  If they broke our nation’s laws, yes, they are a criminal. 

    Yes.

    Q    Thank you.  On stripping security details for figures like John Bolton, Pompeo, Brian Hook.  Senator Tom Cotton said that he’s seen the intelligence and the threat from Iran is real for anyone who played a role in the Soleimani strike.  He voiced concern it wouldn’t just impact those individuals but potentially their family, innocent bystanders, friends — anyone who is near them when they’re out in public.  Is the president open to reconsidering his decision?

    MS. LEAVITT:  The president was asked and answered this yesterday, and he was firm in his decision, despite some of the comments that you had referenced.  And he’s made it very clear that he does not believe American taxpayers should fund security details for individuals who have served in the government for the rest of their lives.  And there’s nothing stopping these individuals that you mentioned from obtaining private security. 

    That’s where the president stands on it.  I have no updates on that. 

    Q    Is there any concern that this decision might jeopardize the administration’s ability to hire the best advisers for these kinds of positions in the future?

    MS. LEAVITT:  No.  In fact, I’ve talked to the Presidential Personnel Office who has told me directly that there is such an influx of resumes for this administration that it’s incredibly overwhelming.  There is no lack of talent for the Trump administration. 

    Reagan Ree- —

    Q    And would he — would he take any responsibility —

    Q    Thanks, Karoline.

    Q    — if anything happened to these people?  Would he feel at all that his decision was a factor in that?

    MS. LEAVITT:  The president was asked and answered this yesterday.  I’d defer you to his comments.

    Q    Thanks, Karoline.

    Q    Karoline —

    MS. LEAVITT:  Reagan, since you’re in the back row, I hear y- — the back row hasn’t gotten much attention in the last four years —

    Q    Yes, thank you.

    MS. LEAVITT:  — so I’m happy to answer your question. 

    Q    And I can project.  (Laughter.)

    Does the president intend to permanently cut off funding to NGOs that are bringing illegal foreign nationals to the country, such as Catholic Charities?

         MS. LEAVITT:  I am actually quite certain that the president signed an executive order that did just that, and I can point you to that.

         Q    One more, Karoline.

    MS. LEAVITT:  Yeah.

    Q    President Trump issued an executive order on increased vetting for refugees in visa applications. 

    MS. LEAVITT:  That’s right.

    Q    Part of that order was considering an outright ban for countries that have deficient screening processes.  Has the president considered yet which countries might fall into this category?  Are countries like Afghanistan or Syria under consideration for a full ban?

    MS. LEAVITT:  Yeah.  So, the president signed an executive order to streamline the vetting for visa applicants and for illegal immigrants in this country who are coming, of course, from other nations. 

    It also directed the secretary of State to review the process and make sure that other countries around the world are being completely transparent with our nation and the individuals that they are sending here.  And so, the secretary of State has been directed to report back to the president.  I haven’t seen that report yet.  We’ve only been here for a few days.

    (Cross-talk.)

    Q    Karoline, two questions for you.  One on the freeze in federal funding.  Who advised the president on the legality of telling government agencies that they don’t have to spend money that was already appropriated by Congress?

    MS. LEAVITT:  Well, as the OMB memo states, this is certainly within the confines of the law. 

    So, White House Counsel’s Office believes that this is within the pe- — president’s power to do it, and therefore, he’s doing it.

    Q    Okay.  So, they disagree with lawmakers who say that they don’t have the power to — to freeze this funding?

    MS. LEAVITT:  Again, I would point you to the language in the memo that clearly states this is within the law.

    Q    And on what happened on Friday night.  The — the administration fired several inspectors general without giving Congress the 30-day legally required notification that they were being fired.  I think only two were left at DO- — DHS and the DOJ.  And then, yesterday, we saw several prosecutors — I believe 12 — fired from the Justice Department who worked on the investigations into the president.  As you know, they are career prosecutors; therefore, they are afforded civil service protections.  How is the administration deciding which laws to follow and which ones to ignore?

    MS. LEAVITT:  So, it is the belief of this White House and the White House Counsel’s Office that the president was within his exe- — executive authority to do that.  He is the executive of the executive branch, and, therefore, he has the power to fire anyone within the executive branch that he wishes to. 

    There’s also a case that went before the Supreme Court in 2020: Scaila [Seila] Law LLC, v. the Customs — the [Consumer Financial Protection] Bureau Protection I would advise you to look at that case, and that’s the legality that this White House has rested on. 

    Q    So, you’re confident that if they bring lawsuits against you — those prosecutors who were fired — that — that they will succeed?

    MS. LEAVITT:  We will win in court, yes.

    Q    And did he personally direct this, given they worked on the classified documents investigation and the election interference investigation?

    MS. LEAVITT:  This was a memo that went out by the Presidential Personnel Office, and the president is the leader of this White House.  So, yes.

    Q    So, it did come from him?

    MS. LEAVITT:  Yes, it came from this White House.

    (Cross-talk.)

    Q    Karoline.

    MS. LEAVITT:  Sir.

    Q    Thank you.  Congrats on your first day behind the podium.

    MS. LEAVITT:  Thank you.

    Q    President Trump ended funding for UNRWA and also designated the Houthis a foreign terrorist organization.

    MS. LEAVITT:  That’s right.

    Q    Both were decisions that the previous administration had reversed.  So, here’s my question: Will there be an investigation into who gave the previous administration this terrible advice?

    MS. LEAVITT:  Well, that’s a very good point.  I haven’t heard discussions about such an ins- — investigation, but it wouldn’t be a bad idea, considering that the Houthis cer- — certainly are terrorists.  They have launched attacks on U.S. naval ships across this world, and so I think it was a very wise move by this administration to redesignate them as a terrorist group, because they are.  And I think it was a foolish decision by the previous administration to do so. 

    As for an investigation, I’m not sure about that, but it’s not a bad idea.

    (Cross-talk.)

    Josh.

    Q    Thank you for the question.  I appreciate it.  Can you give us an update on the president’s plan for his tariff agenda?  He spoke a lot about this yesterday, and there’s a couple of dates coming up that —

    MS. LEAVITT:  Sure.

    Q    — he’s spoken to.  Number one, February 1st.  He’s alluded to both the potential for tariffs for Canada and Mexico but also China to take effect on those days.  Where is — what’s he thinking about that?

    MS. LEAVITT:  Yeah.

    Q    Should those countries expect that on the 1st?

    MS. LEAVITT:  Again, he was asked and answered this question this past weekend when he took a lot of questions from the press, and he said that the February 1st date for Canada and Mexico still holds.

    Q    And what about the China 10 percent tariff that he also had mused about last Tuesday going into effect on the same date?

    MS. LEAVITT:  Yeah, the president has said that he is very much still considering that for February 1st.

    Q    And then, separately, yesterday, he talked also about sectoral tariffs on, for instance, pharmaceuticals, as well as semiconductor computer chips.  He talked about steel, aluminum, and copper.  What’s the timeline on those?  Is that a similar sort of “coming days” thing or —

    MS. LEAVITT:  Yeah, so when the president talked about that in his speech yesterday, that actually wasn’t a new announcement.  That was within a presidential memorandum that he signed in one of the first days here in the White House on his America First trade agenda.  So, there’s more details on those tariffs in there.

    As far as a date, I don’t have a specific date to read out to you, but the president is committed to implementing tariffs effectively, just like he did in his first term.

    Q    And then — and then, finally, he also was asked on the plane when he gaggled about the potential for a universal tariff.  He was asked maybe about two and a half percent.

    MS. LEAVITT:  Yeah.

    Q    There was a report about that.  He said he wanted “much bigger than that.”  Should we understand that these tariffs would add up?  You know, in other words, you might have country-specific tariffs like Canada, Mexico, China.  You might have sectoral tariffs, like on pharmaceuticals, as well as a potential universal tariff on top of that.  Do these stack on one or the other, or would one sort of take precedence over another?

    MS. LEAVITT:  All I can point you to is what the president has said on this front: the February 1st date for Canada and Mexico and also the China tariff that he has discussed.

    He rejected the 2.5 percent tariff.  He said that was a little bit too low.  He wants it to be higher. 

    I’ll leave it to him to make any decisions on that front.

    Q    Do you have any comment on what the —

    (Cross-talk.)

    Q    — what the Mexicans and Canadians —

    MS. LEAVITT:  Phil.

    Q    — have done so far?  Do you have any comment on whether that has met the bar of what he wants to see on fentanyl?  Thank you.

    MS. LEAVITT:   I — I won’t get ahead of the president, again, on advocating to foreign nations on what they should or shouldn’t do to get away from these tariffs.  The president has made it very clear, again, that he expects every nation around this world to cooperate with the repatriation of their citizens.  And the president has also put out specific statements in terms of Canada and Mexico when it comes to what he expects in terms of border security.

    We have seen a historic level of cooperation from Mexico.  But, again, as far as I’m still tracking — and that was last night talking to the president directly — February 1st is still on the books.

    Q    Thank you.

    MS. LEAVITT:  Phil.

    Q    Thank you, Karoline.  Quick programming note, and then a question on taxes.

    MS. LEAVITT:  A programming note.

    Q    Well, in terms of programming, should —

    MS. LEAVITT:  That sounds fun. 

    Q    — we expect to see you here every day?  How frequently will these —

    Q    That’s a good question.

    Q    — press briefings be?

    MS. LEAVITT:  It is a good question, April.

    So, look, the president, as you know, is incredibly accessible.  First day here, he wanted all of you in the Oval Office.  You got a 60-minute press conference with the leader of the free world — while he was simultaneously signing executive orders, I may add.  That’s pretty impressive.  I don’t think the previous office holder would be able to pull such a thing off. 

    So, look, the president is the best spokesperson that this White House has, and I can assure you that you will be hearing from both him and me as much as possible.

    Q    And then a question about tax cuts.  You know, the president has promised to extend the tax cuts from the previous term.  I’m curious, you know, does the president support corresponding spending cuts, as some Republicans have called for in Congress?  And will the new Treasury secretary be leading those negotiations with the Hill, as Mnuchin did during the first administration?

    MS. LEAVITT:  The president is committed to both tax cuts and spending cuts.

    And he has a great team negotiating on his behalf, but there’s no better negotiator than Donald Trump, and I’m sure he’ll be involved in this reconciliation process as it moves forward.

    (Cross-talk.)

    Q    Karoline, in the announcement that you made last night on the Iron Dome, it said the president had directed that the United States will build this Iron Dome.

    MS. LEAVITT:  Yeah.

    Q    When you read into the executive order, it seemed short of that.  It asked for a series of studies —

    MS. LEAVITT:  Yeah.

    Q    — and reports back on — can you tell us whether the president has directed this and, if he is this concerned on this issue, why the suspensions that we saw listed by OMB included so many different nuclear programs, nonproliferation programs, programs to blend down nuclear weapons, and s- — and so forth?

    MS. LEAVITT:  First of all, when it comes to the Iron Dome, the executive order directed the implementation of the — of an Iron Dome.  It also, as you said, kind of directed research and studies to see if — or — or how the United States can go about doing this, particularly the Department of Defense.

    When it comes to the other question that you asked about those specific programs, again, I would say, this is not a — a ban; this is a temporary pause and a freeze to ensure that all of the money going out from Washington, D.C., is in align with the president’s agenda.

    And as the Office of Management and Budget has updates on what will be kick-started, once again, I will provide those to you. 

    Q    Can you clarify for a sec what you were saying before on Medicaid?  It wasn’t clear to me whether you were saying that no Medicaid would be cut off.  Obviously, a lot of this goes to states before it goes to individuals and so forth.  So, are you guaranteeing here that no individual now on Medicaid would see a cutoff because of the pause?

    MS. LEAVITT:  I’ll check back on that and get back to you. 

    Jon.

    Q    Thanks a lot, Karoline.  As you know, in the first week that the president was in office, signed an executive order as it relates to birthright citizenship — trying to eliminate that.  Now, 22 state attorney generals have said that this is unconstitutional.  A federal judge has just agreed with their argument.  What’s the administration’s argument for doing away with birthright citizenship?

    MS. LEAVITT:  The folks that you mentioned have a right to have that legal opinion, but it is in disagreement with the legal opinion of this administration. 

    This administration believes that birthright citizenship is unconstitutional, and that is why President Trump signed that executive order.  Illegal immigrants who come to this country and have a child are not subject to the laws of this jurisdiction.  That’s the opinion of this administration. 

    We have already appealed the rul- — the lawsuit that was filed against this administration, and we are prepared to fight this all the way to the Supreme Court if we have to, because President Trump believes that this is a necessary step to secure our nation’s borders and protect our homeland. 

    Monica.

    Q    And then on foreign policy — on foreign policy, Karoline —

    Q    Thank you, Karoline.  It’s great to see you, and you’re doing a great —

    Q    — on foreign policy, if I may.  The president’s commitment to the NATO defense Alliance, is it as strong as the prior administration?  Is it the same as when he served as president in his first term in office?

    MS. LEAVITT:  As long as NATO pays their fair share.

    And President Trump has called on NATO Allies to increase their defense spending to 5 percent.  You actually saw the head of NATO at Davos last week on Bloomberg Television saying that President Trump is right and if Europe wants to keep itself safe, they should increase their defense spending. 

    I would just add that there was no greater ally to our European allies than President Trump in his first term.  The world, for all nations in Europe, and, of course, here at home was much safer because of Presidents Tru- — Trump’s peace through strength diplomatic approach. 

    Monica.

    Q    Karoline —

    Q    Thank you.  Thank you, Karoline.  And it’s great to finally be called on as well in the briefing room.  I appreciate that. 

    MS. LEAVITT:  You’re welcome. 

    Q    Of course, we know President Trump just got back from North Carolina and California meeting with victims of natural disasters.  There’s the two-year anniversary of the East Palestine, Ohio, toxic train derailment.  Does the president have any plans to go visit the victims of that toxic spill or just visit in general?

    MS. LEAVITT:  Not — no plans that I can read out for you here.  If that changes, I will certainly keep you posted. 

    What I can tell you is that President Trump still talks about his visit to East Palestine, Ohio.  That was one of the turning points, I would say, in the previous election campaign, where Americans were reminded that President Trump is a man of the people.  And he, as a candidate, visited that town that was just derailed by the train derailment — no pun intended — and he offered support and hope, just like I saw the president do this past week. 

    It was a purposeful decision by this president, on his first domestic trip, to go to North Carolina and to California to visit with Americans who were impacted by Hurricane Helene and also by the deadly fires — a red state and a blue state, both of which feel forgotten by the previous administration and the federal government.  That has now — that has now ended under President Trump. 

    He will continue to put Americans first, whether they’re in East Palestine, in Pacific Palisades, or in North Carolina.

    (Cross-talk.)

    Sure.

    Q    Thank you, Karoline.  On California, could you please clarify what the military did with the water last night, as referenced in the president’s Truth Social post?

    MS. LEAVITT:  The water has been turned back on in California, and this comes just days after President Trump visited Pacific Palisades and, as you all saw, applied tremendous pressure on state and local officials in Pacific Palisades, including Los Angeles Mayor Karen Bass, to turn on the water and to direct that water to places in the south and in the middle of the state that have been incredibly dry, which has led to the expansion — the rapid expansion of these fires.

    Q    So, could you clarify what the military’s role was, where the water came from, and how it got there?

    MS. LEAVITT:  Again, the Army Corps of Engineers has been on the ground in California to respond to the devastation from these wildfires.  And I would point out that just days after President Trump visited the devastation from these fires, the water was turned on.  That is because of the pressure campaign he put on state and local officials there, who clearly lack all common sense. 

    And I will never forget being at that round table with the president last week and hearing the frustration in the voices of Pacific Palisades residents who feel as though their government has just gone insane.  Before President Trump showed up on the scene, Karen Bass was telling private property owners that they would have to wait 18 months to access their private property.

    So, this administration, the president and his team that’s on the ground in California — Ric Grenell, who he has designated to oversee this great crisis — ha- — will continue to put pressure on Karen Bass and state and local officials to allow residents to access their properties. 

    This is a huge part of it.  These residents want to take part in their own clearing out of their properties.  They should be able to do that.  It’s the United States of America.  What happened to our freedom?  Clearly, it’s gone in California, but not anymore under President Trump.

    Q    Karoline —

    MS. LEAVITT:  April.

    Q    Karoline, welcome to the briefing room.

    MS. LEAVITT:  Thank you.

    Q    Several questions.  One on the pause.  Will minority-serving institutions, preferably colleges and universities, have those monies held back temporarily at this moment?

    MS. LEAVITT:  Again, I have not seen the entire list, because this memo was just sent out.  So, I will provide you all with updates as we receive them.  Okay?

    Q    Karoline —

    Q    And secondly — als- —

    Q    Karoline.

    Q    Also, secondly, when it comes to immigration, there is this southern border focus.  What happens to those who have overstayed their visas?  That is part of the broken immigration system.  In 2023, there was a report by the Biden administration, the Homeland Security Department, that said overstays of visas were three times more than usual.  Will there be a focus on the overstays for visas as well?

    MS. LEAVITT:  If an individual is overstaying their visa, they are therefore an illegal immigrant residing in this country, and they are subject to deportation.  

    Q    And also, lastly —

    MS. LEAVITT:  Yes.

    Q    Lastly, as we’re dealing with anti-DEI, anti-woke efforts, we understand this administration could — is thinking about celebrating Black History Month.  Have you got any word on that?  Anything that you can offer to us?

    MS. LEAVITT:  As far as I know, this White House certainly still intends to celebrate, and we will continue to celebrate American history and the contributions that all Americans, regardless of race, religion, or creed, have made to our great country.  And America is back.

    Christian Datoc.

    Q    Thanks, Karoline.  Just real quick.  You mentioned the inflation executive order the president signed, but egg prices have skyrocketed since President Trump took office.  So, what specifically is he doing to lower those costs for Americans?

    MS. LEAVITT:  Really glad you brought this up, because there is a lot of reporting out there that is putting the onus on this White House for the increased cost of eggs.  I would like to point out to each and every one of you that, in 2024, when Joe Biden was in the Oval Office — or upstairs in the residence sleeping; I’m not so sure — egg prices increased 65 percent in this country.  We also have seen the cost of everything, not just eggs — bacon, groceries, gasoline — have increased because of the inflationary policies of the last administration.

    As far as the egg shortage, what’s also contributing to that is that the Biden administration and the Department of Agriculture directed the mass killing of more than 100 million chickens, which has led to a lack of chicken supply in this country, therefore a lack of egg supply, which is leading to the shortage.

    So, I will leave you with this point.  This is an example of why it’s so incredibly important that the Senate moves swiftly to confirm all of President Trump’s nominees, including his nominee for the United States Department of Agriculture, Brooke Rollins, who is already speaking with Kevin Hassett, who is leading the economic team here at the White House, on how we can address the egg shortage in this country.

    As for cots, I laid out — costs — I laid out the plethora of ways that President Trump has addressed saving costs for the American people over the past week.  He looks forward to continuing to doing that —

    Q    Karoline, what —

    MS. LEAVITT:  — in the days ahead.

    (Cross-talk.)

    Thank you, guys, so much.  I’ll see you soon.

    END                1:52 P.M. EST

    MIL OSI USA News

  • MIL-OSI Security: Criminal Complaint Charges Baltimore City Man with Sexual Exploitation of a Child and Receipt of Child Sexual Abuse Material

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

    Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland filed a federal criminal complaint charging Dazhon Darien, 32, of Baltimore, with sexual exploitation of a child and receiving child sexual abuse material.

    Erek L. Barron, U.S. Attorney for the District of Maryland, announced the complaint with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department. 

    According to the affidavit in support of the criminal complaint, investigators obtained search warrants for Darien’s phones and online accounts which contained child sexual abuse material.  Additionally, the affidavit further describes how Darien used CashApp to pay a minor victim to send videos of himself engaged in sexually explicit conduct.  Darien paid the victim for the videos between December 2023 and March 2024.  The affidavit also shows that Darien received other child-sexual-abuse-material files, including some that depicted prepubescent minors.

    A criminal complaint is not a finding of guilt.  An individual charged by a criminal complaint is presumed innocent until proven guilty at a later criminal proceeding.

    If convicted, Darien faces a mandatory minimum sentence of 15 years or a maximum sentence of 30 years in federal prison for sexual exploitation of a child. Additionally, Darien could receive a mandatory minimum sentence of five years or a maximum of 20 years in federal prison for receipt of child sexual abuse material.  Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after taking into account the U.S. Sentencing Guidelines and other statutory factors.

    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 the United States Attorney’s 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 victims.

    U.S. Attorney Barron commended the Baltimore FBI Field Office and the Baltimore County Police Department for their work in the investigation.  Mr. Barron also thanked Assistant U.S. Attorneys Christine Goo and Paul E. Budlow who are prosecuting the federal case.

    For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click the “Resources” tab on the left of the page for more information about Internet safety education.

    For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

    # # #

    MIL Security OSI

  • MIL-OSI Security: Former Deputy Sheriff Heads to Prison for Drug Trafficking

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

    McALLEN, Texas – A former deputy with the Hidalgo County Sheriff’s Office has been ordered to prison following his conviction of conspiracy to possess with the intent to distribute more than 500 grams of cocaine, announced acting U.S. Attorney Jennifer B. Lowery.

    Baldemar Cardenas, 39, McAllen, pleaded guilty April 1, 2022.

    Chief U.S. District Judge Randy Crane has now ordered Cardenas to serve 46 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the his position as a deputy at the time of the offense and the serious issues with law enforcement authorities assisting drug traffickers.

    At the time of his plea, Cardenas admitted that in January 2020, he conspired with a drug trafficking organization.

    Members of the group would receive kilogram quantities of highly pure cocaine. They would then utilize small portions of the drugs to create sham cocaine with very low purity.

    Cardenas ensured authorities seized the fake bundles by providing information to local law enforcement agencies. The information would enable authorities to conduct the seizure of the low purity cocaine, allow co-conspirators to avoid responsibility for stealing the cocaine from their source of supply and the distribution of the stolen cocaine for profit.

    In order to further the scheme and in exchange for compensation, Cardenas provided information to local law enforcement in January 2020 in order to effectuate the seizure of approximately 33 kilograms of sham cocaine bundles. Cardenas falsely claimed a confidential source provided the information. Based on the information he gave, law enforcement seized the multi-kilogram sham bundles of cocaine in Mission.

    Laboratory testing on the bundles revealed a cocaine purity level of only 1.5%.

    Cardenas was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

    The FBI and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Drug Enforcement Administration, Hidalgo County Sheriff’s Office and Mission Police Department. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

    Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.

    MIL Security OSI

  • MIL-OSI: Main Street Financial Services Corp. Announces Earnings for Fourth Quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    Business Highlights

    • Financial results reflect the second full quarter following the completed merger of Main Street Financial Services Corp. (Main Street) and Wayne Savings Bancshares, Inc. (Wayne) on May 31, 2024.
    • Net income for the fourth quarter of 2024 totaled $3.2 million, or $0.41 per common share
    • Annualized deposit growth of 19.7% for the quarter ended December 31, 2024
    • Reduced reliance on wholesale funding by $40 million during the fourth quarter of 2024
    • Declared cash dividend of $0.14 per share on January 10, 2025

    WOOSTER, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) — Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported a net income of $3.2 million, or $0.41 per common share, for the three months ended December 31, 2024. The return on average equity and return on average assets for the fourth quarter of 2024 was 11.69% and 0.90%, compared to 16.90% and 1.02%, for the fourth quarter of 2023.

    The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”) on February 23, 2023. On May 31, 2024 (the “Merger Date”), the Company completed the transaction, forming a financial holding company with assets of $1.4 billion. On the Merger Date, Legacy Wayne merged with and into Main Street, with Main Street surviving the merger (the “Merger”). Immediately following the Merger, Main Street’s wholly owned bank subsidiary, Main Street Bank Corp., merged with and into Wayne Savings Community Bank, with Wayne Savings Community Bank surviving the merger. Upon completion of the Merger, Wayne Savings Community Bank was renamed Main Street Bank Corp.

    The Merger was accounted for as a reverse merger using the acquisition method of accounting, therefore, Legacy Wayne was deemed the acquirer for financial reporting purposes, even though Main Street was the legal acquirer. Accordingly, Legacy Wayne’s historical financial statements are the historical financial statements of the combined company for all periods before the Merger Date. Our consolidated statements of income for the quarters ended June 30, 2024, September 30, 2024 and December 31, 2024, include the results from Main Street on and after May 31, 2024. Results for periods before May 31, 2024, reflect only those of Legacy Wayne and do not include the consolidated statements of income of Main Street. Accordingly, comparisons of our results for the quarter ended December 31, 2024, with those of prior periods may not be meaningful. The number of shares issued and outstanding, earnings per share, dividends paid and all references to share quantities of Main Street have been retrospectively adjusted to reflect the equivalent number of shares issued in the Merger.

    President and CEO James R. VanSickle commented, “I am proud of the dedication and hard work displayed by Main Street Bank’s team of community bankers throughout 2024. They have been instrumental in the improvement of our operational efficiencies, enhancement of our customer experience and delivering long-term value for our shareholders. I would like to thank our customers, shareholders and our communities for their confidence in Main Street Bank.”

    Fourth Quarter 2024 Financial Results

    Net interest income was $10.6 million for the quarter ended December 31, 2024, an increase of 103.4% from $5.2 million for the quarter ended December 31, 2023. The net interest margin of 3.19% for the fourth quarter of 2024 increased 46 basis points from 2.73% for the fourth quarter of 2023. Loan yields were 6.12% for the quarter ended December 31, 2024, an increase of 82 basis points when compared to 5.30% for the quarter ended December 31, 2023. The loan yield increase is the result of variable rate loan repricing, new loan originations at current markets rates and purchase accounting accretion on acquired loans. Investment yields increased 122 basis points to 3.59% as of December 31, 2024 when compared to the quarter ended December 31, 2023. The cost of funds for the fourth quarter of 2024, was 2.66%, an increase of 33 basis points when compared to the fourth quarter of 2023. The cost of funds increase is largely due to shifting deposit composition to higher-yielding product offerings and utilizing higher-cost wholesale funding, such FHLB advances. The cost of total deposits was 2.25% for the quarter ended December 31, 2024, a 21 basis point increase when compared to 2.04% for the quarter ended December 31, 2023. The cost of borrowings for the quarter ended December 31, 2024 totaled 5.64%, an increase of 94 basis points when compared to the quarter ended December 31, 2023.

    A provision for credit losses and unfunded commitments of $79,000 was recorded for the quarter ended December 30, 2024. During the quarter, the Company recognized $20,000 in charge-offs and $5,000 in recoveries, reflecting relatively stable asset quality.

    Noninterest income totaled $1.2 million for the quarter ended December 31, 2024, an increase of $148,000, or 14.6%, when compared to the quarter ended December 31, 2023. Noninterest income declined by $435,000 when compared to the quarter ended September 30, 2024. During the quarter ended September 30, 2024, the Company recognized a gain on the sale of investments totaling $702,000.

    Noninterest expense totaled $8.0 million for the quarter ended December 31, 2024, an increase of $4.2 million when compared to the quarter ended December 31, 2023. Noninterest expense increased by $87,000 when compared to the quarter ended September 30, 2024 due to increased incentive compensation and a charge related to the disposition of an REO property. The increase reflects a full quarter of combined expenses after completion of the merger.

    The provision for income taxes for the quarter ended December 31, 2024, decreased by $246,000 compared to the quarter ended September 30, 2024. This reduction was primarily driven by the Company’s reassessment of the West Virginia state income tax impact.

    December 31, 2024 Financial Condition

    At December 31, 2024, the Company had total assets of $1.41 billion with net loan balances totaling $1.11 billion. Loan balances remained relatively unchanged for the quarter ended December 31, 2024. As part of the merger, the Company acquired $430.8 million in loans.

    The allowance for credit losses was $11.8 million at December 31, 2024, compared to $7.3 million at December 31, 2023. The increase is a result of establishing an allowance for credit losses on the acquired non-PCD loan portfolio during the second quarter of 2024. The allowance for credit losses as a percent of total loans was 1.05%, compared to 1.09% as of December 31, 2023. The allowance for credit losses and the related provision for credit losses is based on management’s judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses.

    Total nonperforming loans (NPLs) was $6.1 million at December 31, 2024, an increase from $0.6 million at December 31, 2023. The NPL to net loan receivable ratio was 0.55% as of December 31, 2024. Past due loan balances of 30 days and more increased from $2.8 million at December 31, 2023, to $13.8 million, or 1.24% of net loans outstanding, at December 31, 2024. The increase in nonperforming and past due loans is due to the impact of the acquired loan portfolio.

    Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans and loans past due 30 or more days for Legacy Wayne and Main Street was $24.4 million and $19.1 as of December 31, 2022. Since the merger announcement on February 23, 2023, the management teams of both Main Street and Wayne invested a great deal of time ensuring our combined organization utilizes strong underwriting standards and proactively monitors credit quality. Main Street sold approximately $15.2 million of loans in August 2023 and April 2024, of which approximately $12.7 million were classified loans. As of December 31, 2024, the resultant Company has $14.8 of classified loans and $13.8 of loans past due 30 or more days.

    Total liabilities increased to $1.30 billion at December 31, 2024 with deposits totaling $1.16 billion and FHLB advances totaling $100.0 million. Deposits grew by $54.3 million, or 19.7% annualized, during the fourth quarter of 2024. As part of the merger, the Company acquired $487.4 million in deposits. As of December 31, 2024, the Company held no brokered deposits compared to $116.7 million at December 31, 2023. The Company leverages FHLB advances for short-term funding needs due to their accessibility and alignment with prevailing market rates. During the fourth quarter of 2024, the Company reduced the reliance on FHLB advances by $40 million.

    Total stockholders’ equity was $110.6 million at December 31, 2024, an increase of $57.7 million when compared to the December 31, 2023 balance. The increase was primarily driven by the merger between Main Street and Wayne. Total stockholders’ equity decreased during the fourth quarter of 2024 primarily from a decrease in accumulated other comprehensive income of $4.7 million and dividends of $1.1 million, partially offset by net income of $3.2 million.

    Main Street Financial Services Corp. is a holding company headquartered in Wooster, Ohio. Its primary subsidiary, Main Street Bank Corp. was founded in 1899 and provides full-service banking, commercial lending, and mortgage services across its branch infrastructure. Today, Main Street Bank Corp. operates 19 branch locations in Wooster, Ohio, Wheeling, West Virginia and other surrounding communities in Ohio and West Virginia. Additional information about Main Street Bank Corp. is available at www.mymainstreetbank.bank.

    Non-GAAP Disclosure
    This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which are excluding costs related to merger activities which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.

    Forward-LookingStatements
    This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined by the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company’s future operating results.  When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements.  Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control.  These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company’s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment.  Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact Information:
    Matthew Hartzler
    Senior Vice President, Chief Financial Officer
    (330) 264-5767

       
    MAIN STREET FINANCIAL SERVICES CORP.
    Condensed Consolidated Balance Sheets
    (Dollars in thousands, except share data – unaudited)
       
        December 31, 2024   December 31, 2023
    ASSETS            
                 
    Cash and cash equivalents   $ 54,422     $ 20,884  
    Securities, net (1)   163,819     86,405  
    Loans receivable, net   1,113,900     669,603  
    Federal Home Loan Bank stock   6,445     3,959  
    Premises & equipment, net   10,880     4,904  
    Bank-owned life insurance   22,155     11,706  
    Other assets   37,608     12,486  
    TOTAL ASSETS   $ 1,409,229     $ 809,947  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
                 
    Deposit accounts   $ 1,156,328     $ 693,126  
    Other short-term borrowings   28,308     8,743  
    Federal Home Loan Bank advances   100,000     47,000  
    Accrued interest payable and other liabilities   13,957     8,111  
    TOTAL LIABILITIES   1,298,593     756,980  
                 
                 
    Common stock (7,801,011 shares of $1.00 par value issued)   7,801     398  
    Additional paid-in capital   56,387     36,715  
    Retained earnings   57,356     55,342  
    Treasury Stock, at cost – 0 shares and 1,777,824 shares at December 31, 2024 and December 31, 2023, respectively.       (30,330 )
    Accumulated other comprehensive loss   (10,908 )   (9,158 )
    TOTAL STOCKHOLDERS’ EQUITY   110,636     52,967  
                 
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,409,229     $ 809,947  
                 
    (1) Includes available-for-sale and held-to-maturity classifications.
    Note: The December 31, 2023 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.
    MAIN STREET FINANCIAL SERVICES CORP.
    Condensed Consolidated Statements of Income
    (Dollars in thousands, except share data – unaudited)
                     
        Three Months Ended   Twelve Months Ended
        December 31,   December 31,
          2024       2023       2024       2023  
                     
    Interest income   $ 19,138     $ 9,545     $ 60,334     $ 35,095  
    Interest expense     8,531       4,330       27,665       12,920  
    Net interest income     10,607       5,215       32,669       22,175  
    Provision for credit losses     79       4       4,782       530  
    Net interest income after provision for credit losses     10,528       5,211       27,887       21,645  
    Non-interest income     1,165       1,017       4,158       3,017  
    Non-interest expense                
    Salaries and employee benefits     3,823       1,782       12,511       7,731  
    Net occupancy and equipment expense     1,430       625       4,399       2,431  
    Federal deposit insurance premiums     197       157       637       531  
    Franchise taxes     107       81       464       380  
    Advertising and marketing     237       44       645       223  
    Legal     143       15       651       45  
    Professional fees     260       74       1,924       239  
    ATM network     84       123       557       443  
    Auditing and accounting     130       60       516       240  
    Other     1,539       787       4,165       2,561  
    Total non-interest expense     7,950       3,748       26,469       14,824  
    Income before federal income taxes     3,743       2,480       5,576       9,838  
    Provision for federal income taxes     558       443       873       2,005  
    Net income   $ 3,185     $ 2,037     $ 4,703     $ 7,833  
                     
    Earnings per share                
    Basic   $ 0.41     $ 0.46     $ 0.76     $ 3.56  
    Diluted   $ 0.41     $ 0.46     $ 0.76     $ 3.54  
    MAIN STREET FINANCIAL SERVICES CORP.
    Selected Condensed Consolidated Financial Data
    (Dollars in thousands, except share data – unaudited)
                     
        December   September   June   March
          2024       2024       2024       2024  
                     
    Interest and dividend income   $ 19,138     $ 18,930     $ 12,572     $ 9,694  
    Interest expense     8,531       8,308       6,185       4,641  
    Net interest income     10,607       10,622       6,387       5,053  
    Provision for credit losses     79       109       4,720       (126 )
    Net interest income after provision for credit losses     10,528       10,513       1,666       5,179  
    Non-interest income     1,165       1,600       716       678  
    Non-interest expense     7,950       7,863       6,723       3,934  
    Income before federal income taxes     3,743       4,251       (4,341 )     1,923  
    Provision for federal income taxes     558       804       (873 )     384  
    Net income   $ 3,185     $ 3,446     $ (3,468 )   $ 1,539  
                     
    Earnings per share – basic   $ 0.41     $ 0.44     $ (0.68 )   $ 0.40  
    Earnings per share – diluted   $ 0.41     $ 0.44     $ (0.67 )   $ 0.40  
    Dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14  
    Return on average assets     0.90 %     1.00 %     -1.38 %     0.76 %
    Return on average equity     11.69 %     12.58 %     -17.16 %     11.63 %
    Shares outstanding at quarter end     7,801,011       7,801,011       7,787,055       3,840,575  
    Book value per share   $ 14.18     $ 14.27     $ 13.60     $ 13.81  
    Tangible equity per share   $ 12.13     $ 12.15     $ 11.49     $ 13.36  
                     
                     
        December   September   June   March
          2023       2023       2023       2023  
                     
    Interest and dividend income   $ 9,545     $ 9,078     $ 8,571     $ 7,901  
    Interest expense     4,330       3,673       2,867       2,050  
    Net interest income     5,215       5,405       5,704       5,851  
    Provision for credit losses     4       138       170       218  
    Net interest income after provision for credit losses     5,211       5,267       5,534       5,633  
    Non-interest income     1,017       691       706       603  
    Non-interest expense     3,748       3,733       3,949       3,394  
    Income before federal income taxes     2,480       2,225       2,291       2,842  
    Provision for federal income taxes     443       452       547       563  
    Net income   $ 2,037     $ 1,773     $ 1,744     $ 2,279  
                     
    Earnings per share – basic   $ 0.53     $ 0.46     $ 0.46     $ 0.60  
    Earnings per share – diluted   $ 0.53     $ 0.46     $ 0.45     $ 0.59  
    Dividends per share   $ 0.14     $ 0.14     $ 0.14     $ 0.14  
    Return on average assets     1.02 %     0.91 %     0.92 %     1.23 %
    Return on average equity     16.90 %     14.41 %     14.36 %     19.58 %
    Shares outstanding at quarter end     3,839,702       3,837,609       3,837,085       3,831,939  
    Book value per share   $ 13.80     $ 12.40     $ 12.64     $ 12.51  
    Tangible equity per share   $ 13.35     $ 11.95     $ 12.20     $ 12.06  
    MAIN STREET FINANCIAL SERVICES CORP.
    Non-GAAP reconciliation
    (Dollars in thousands, except per share data – unaudited)
         
      For three months ended   For the twelve months ended
      December,   December,
          2024       2023       2024       2023  
                     
    Net Income as reported – GAAP   $ 3,185     $ 2,037     $ 4,703     $ 7,833  
    Effect of merger related expenses (net of tax benefit)     26       353       5,769       950  
    Net Income non-GAAP   $ 3,211     $ 2,390     $ 10,472     $ 8,783  
                     
    Earnings per share – GAAP   $ 0.41     $ 0.93     $ 0.76     $ 3.56  
    Effect of merger related expenses     0.00       0.16       0.94       0.43  
    Earnings per share non-GAAP   $ 0.41     $ 1.09     $ 1.70     $ 3.99  
                     
    Return on average assets – GAAP     0.90 %     1.02 %     0.41 %     1.02 %
    Effect of merger related expenses     0.01 %     0.18 %     0.50 %     0.12 %
    Return on average assets non-GAAP     0.91 %     1.20 %     0.91 %     1.14 %
                     
    Return on average equity – GAAP     11.69 %     16.90 %     5.58 %     16.27 %
    Effect of merger related expenses     0.09 %     2.93 %     6.84 %     1.97 %
    Return on average equity non-GAAP     11.78 %     19.83 %     12.42 %     18.24 %
                     
    Efficiency Ratio – GAAP     67.54 %     60.14 %     71.87 %     58.42 %
    Effect of merger related expenses     -0.22 %     -5.66 %     -6.73 %     -3.77 %
    Efficiency Ratio non-GAAP     67.32 %     54.48 %     65.14 %     55.07 %

    The MIL Network

  • MIL-OSI: Asset Entities Passes Milestone of 9,000 Members on its TikTok Shop Creator Discord Community

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, Jan. 29, 2025 (GLOBE NEWSWIRE) — Asset Entities Inc. (“Asset Entities” or the “Company”) (NASDAQ: ASST), a provider of digital marketing and content delivery services across Discord and other social media platforms, and a Ternary Payment Platform company, today announced it has passed a total of 9,000 Members on its TikTok Shop Creator Discord community within their ecosystem.

    Asset Entities announced that it had become an official TikTok Shop partner on December 11, 2024. The partnership with TikTok Shop brought Asset Entities to the forefront in signing up creators, executing campaigns with brands, connecting creators with products to sell, and utilizing the TikTok platform. Just over 30 days after announcing this pivotal partnership with TikTok Shop, the Company has now exceeded the milestone of 9,000 members on its creator community who are learning how to use TikTok Shop through the Company’s platform. This incredible achievement allows Asset Entities to collaborate with more brands simultaneously, while also increasing the GMV (Gross Merchandise Value) for brands. The TikTok Shop creators earn commissions by producing UGC content featuring products, and brands that benefit from increased revenue, as more content is shared and sales are driven by content. As a TAP (or TikTok Affiliate), Asset Entities receives a fixed negotiated commission on each sale the creators make for the brands. Increasing the TikTok shop creator community has a strong correlation with higher GMV potential for brands, thus bringing more potential revenue to the Company.

    We are excited to highlight one of our members, Kimberly, who generated over $195,000 in GMV to the brands for which she produces content, earning a commission payout of over $35,000. This is just one creator of the more than 9,000 members in our ecosystem utilizing the power of TikTok Shop and the education provided in the Company’s digital community. Kimberly works with many of the brands that are connected with Asset Entities, and we are excited for more creators in our ecosystem to see similar success.

    Image: Analytic Screenshot sent in by Kimberly within the discord community teaching our members how to grow and make money using TikTok Shop. Source: Asset Entities

    “As more brands start to realize the importance of UGC content, Asset Entities has positioned itself with its recent acquisition and through becoming an official partner of TikTok Shop to seek out additional brands for our ecosystem to increase their sales on the ever-growing market on TikTok. We are excited to see the growth in our TikTok creator numbers as we expand marketing efforts,” commented Asset Entities’ Chief Executive Officer, Arshia Sarkhani.

    To learn about Asset Entities, please go to www.assetentities.com. To learn about the Ternary payment platform, please go to www.ternarydev.com. To learn about Asset Entities 360 suite of discord services, go to https://www.ae360ddm.com/ and https://discord.gg/ae360ddm.

    About Asset Entities, Inc. 

    Asset Entities Inc. is a technology company providing social media marketing, management, and content delivery across Discord, TikTok, Instagram, X (formerly Twitter), YouTube, and other social media platforms. Asset Entities is believed to be the first publicly traded Company based on the Discord platform, where it hosts some of Discord’s largest social community-based education and entertainment servers. The Company’s AE.360.DDM suite of services is believed to be the first of its kind for the Design, Development, and Management of Discord community servers. Asset Entities’ initial AE.360.DDM customers have included businesses and celebrities. The Company also has its Ternary payment platform that is a Stripe-verified partner and CRM for Discord communities. The Company’s Social Influencer Network (SiN) service offers white-label marketing, content creation, content management, TikTok promotions, and TikTok consulting to clients in all industries and markets. The Company’s SiN influencers can increase the social media reach of client Discord servers and drives traffic to their businesses. Learn more at assetentities.com, and follow the Company on X at $ASST and @assetentities.

    Important Cautions Regarding Forward-Looking Statements

    This press release contains forward-looking statements. In addition, from time to time, representatives of the Company may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which are derived from the information currently available to the Company. Such forward-looking statements relate to future events or the Company’s future performance, including its financial performance and projections, growth in revenue and earnings, and business prospects and opportunities. Forward-looking statements can be identified by those statements that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors including those that are described in the section titled “Risk Factors” in the Company’s periodic reports which are filed with the Securities and Exchange Commission. These and other factors may cause the Company’s actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

    Company Contacts:

    Arshia Sarkhani, President and Chief Executive Officer
    Michael Gaubert, Executive Chairman
    Asset Entities Inc.
    Tel +1 (214) 459-3117 
    Email Contact

    Investor Contact:

    Skyline Corporate Communications Group, LLC
    Scott Powell, President
    1177 Avenue of the Americas, 5th Floor
    New York, NY 10036
    Office: (646) 893-5835
    Email: info@skylineccg.com

    A photo accompanying this announcement is available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/9dfd2c85-c5c2-4aea-840d-0bcdac04cecc

    The MIL Network

  • MIL-OSI: Hanover Bancorp, Inc. Reports 2024 Full Year And Fourth Quarter Results Highlighted by Fourth Quarter Robust Margin Expansion and Record Non-interest Income

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter Performance Highlights

    • Net Income: Net income for the quarter ended December 31, 2024 totaled $3.9 million or $0.52 per diluted share (including Series A preferred shares).
    • Record Non-interest Income: The Company reported record non-interest income of $4.2 million for the quarter ended December 31, 2024, an increase of $0.2 million or 5.89% from the quarter ended September 30, 2024 and $0.9 million or 28.67% from the quarter ended December 31, 2023.
    • Net Interest Income: Net interest income was $13.8 million for the quarter ended December 31, 2024, an increase of $0.7 million or 5.39% from the quarter ended September 30, 2024 and $1.1 million, or 9.08% from the quarter ended December 31, 2023.
    • Net Interest Margin: The Company’s net interest margin during the quarter ended December 31, 2024 increased to 2.53% from 2.37% in the quarter ended September 30, 2024 and 2.40% in the quarter ended December 31, 2023.
    • Strong Liquidity Position: At December 31, 2024, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $713.1 million, or approximately 283% of uninsured deposit balances.
    • Deposit Activity: Core deposits, consisting of Demand, NOW, Savings and Money Market, increased $3.1 million or 0.84% annualized from September 30, 2024 and $74.1 million or 5.36% from December 31, 2023. Demand deposits increased $5.3 million or 10.33% annualized from September 30, 2024 and $3.9 million or 1.86% from December 31, 2023. Total deposits increased $49.7 million or 2.61% from December 31, 2023. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at December 31, 2024.
    • Loan Diversification Strategy: The continued success in loan diversification resulted in C&I loans increasing by $61.0 million, or 56.52%, year over year, increasing to 8.51% of total loans at December 31, 2024. In addition, the commercial real estate concentration ratio improved, declining from 432% of capital at December 31, 2023 to 385% of capital at December 31, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans, which strategically enhances our management of liquidity and capital while producing additional non-interest income.
    • Asset Quality: At December 31, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, while the allowance for credit losses was 1.15% of total loans. Loans secured by office space accounted for 2.45% of the total loan portfolio with a total balance of $48.7 million, of which less than 1% is located in Manhattan.
    • Banking Initiatives: At December 31, 2024, the Company’s banking initiatives reflected continuing momentum:
      • SBA & USDA Banking: Gains on sale of SBA loans totaled $2.5 million for the quarter ended December 31, 2024, representing a 9.76% increase over the comparable 2023 quarter. Total SBA loans sold were $30.9 million for the quarter ended December 31, 2024, representing a 3.98% increase over the comparable 2023 quarter. Premiums earned on the sale of SBA loans increased to 9.06% for the quarter ended December 31, 2024 from 8.26% for the quarter ended December 31, 2023.
      • C&I Banking/Hauppauge Business Banking Center: The C&I Banking Team and the Hauppauge Business Banking Center increased deposits to $96.4 million as of December 31, 2024 from $44.9 million at December 31, 2023. This growth has continued since year end, with these deposits reaching $104 million at January 27, 2025. Loan originations tied to this office were $33.5 million during the fourth quarter of 2024 and $88.4 million for the full year. Momentum continues to build with deposit and C&I loan pipelines related to this office of $43 million and $112 million, respectively.
      • Residential Lending: The Bank continues to originate loans for its portfolio and for sale in the secondary market under its recently developed flow origination program. Of the $26.1 million in closed loans originated in the quarter ended December 31, 2024, $11.7 million were originated for the Bank’s portfolio and reflected a weighted average yield of 6.88% before origination and other fees, which average 50-100 bps per loan, and a weighted average LTV of 62%. The remaining $14.4 million of closed loans were originated for sale in the secondary market. Under this program, the Bank produced total gains of $0.5 million and a resulting premium of 2.42% in the fourth quarter of 2024.
    • Technology: The Company expects to complete a core processing system conversion from its existing provider to FIS Horizon on or about February 15, 2025. This conversion is expected to deliver immediate and tangible benefits to the Bank’s operations and customers, offering material improvements in user interfaces, functionality and efficiency that will better support our commitment to a digital forward future on better financial terms.
    • Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) was $23.86 at December 31, 2024, an increase of 9.97% annualized from $23.28 at September 30, 2024 and 6.00% from $22.51 at December 31, 2023.
    • Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 19, 2025 to stockholders of record on February 12, 2025.

    MINEOLA, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter and year ended December 31, 2024 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 19, 2025 to stockholders of record on February 12, 2025.

    Earnings Summary for the Quarter Ended December 31, 2024

    The Company reported net income for the quarter ended December 31, 2024 of $3.9 million or $0.52 per diluted share (including Series A preferred shares), versus $3.8 million or $0.51 per diluted share (including Series A preferred shares) in the quarter ended December 31, 2023. Returns on average assets, average stockholders’ equity and average tangible equity were 0.70%, 7.98% and 8.87%, respectively, for the quarter ended December 31, 2024, versus 0.69%, 8.10% and 9.06%, respectively, for the comparable quarter of 2023.

    While net interest income and non-interest income increased during the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023, these gains were partially offset by an increase in non-interest expenses, particularly compensation and benefits. The increase in non-interest income is primarily related to the increases in the gain on sale of loans held-for-sale and loan servicing and fee income. This increase is reflective of the strengthening of secondary market premiums in connection with sales of SBA loans and the gains on the recently developed residential loan flow program. The increase in compensation and benefits expense in the fourth quarter of 2024 versus the comparable 2023 quarter was primarily related to lower deferred loan origination costs that were offset by lower incentive compensation expense resulting from reduced lending activity.

    Net interest income was $13.8 million for the quarter ended December 31, 2024, an increase of $1.1 million, or 9.08%, versus the comparable 2023 quarter due to improvement of the Company’s net interest margin to 2.53% in the 2024 quarter from 2.40% in the comparable 2023 quarter. The yield on interest earning assets increased to 6.06% in the 2024 quarter from 5.91% in the comparable 2023 quarter, an increase of 15 basis points that was partially offset by a 5 basis point increase in the cost of interest-bearing liabilities to 4.24% in 2024 from 4.19% in the fourth quarter of 2023. The increase in the net interest margin was a result of the recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

    Earnings Summary for the Year Ended December 31, 2024

    For the year ended December 31, 2024, the Company reported net income of $12.3 million or $1.66 per diluted share (including Series A preferred shares), versus $13.6 million or $1.84 per diluted share (including Series A preferred shares) a year ago.

    The decrease in net income recorded for the year ended December 31, 2024 from the comparable 2023 period resulted from an increase in the provision for credit losses and an increase in non-interest expense, which were partially offset by an increase in non-interest income. The year-over-year increase in the provision for credit losses was primarily related to the recording of a $4.0 million provision for credit losses in the June 2024 quarter that was mainly attributable to an ACL on an individually evaluated loan of $2.5 million and $1.1 million related to ongoing enhancements to the CECL model. The increase in non-interest income is primarily related to the increases in the gain on sale of loans held-for-sale and loan servicing and fee income which were partially offset by a decrease in other operating income. In September 2023, the Company settled ongoing litigation and received a settlement payment of $975 thousand which was recorded in other operating income. The increase in non-interest expense was primarily attributed to additional staff for the SBA, C&I Banking and Operations teams. The Company’s effective tax rate decreased to 24.62% for the year ended December 31, 2024 from 25.85% in the comparable 2023 period.

    Net interest income was $53.1 million for the year ended December 31, 2024, an increase of $1.2 million, or 2.32% from the comparable 2023 period. The Company’s net interest margin was 2.44% in 2024 and 2.59% in 2023. The yield on interest earning assets increased to 6.12% in 2024 from 5.67% in 2023, an increase of 45 basis points that was offset by a 72 basis point increase in the cost of interest-bearing liabilities to 4.40% in 2024 from 3.68% in 2023 due to the rapid and significant rise in market interest rates.

    Our imminent core system conversion is expected to position us to compete more effectively across all lines of business, as customers expect greater convenience and technological capabilities, and will enable the Bank to realize operational efficiencies while maximizing our customer appeal. The substantial improvement in features and functionality expected with the conversion will be achieved on better financial terms than under our current system, enabling us to realize a material gain in performance with no adverse impact to operating expenses.

    Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased with fourth-quarter results. Notable increases in net interest margin, tangible book value, returns on average assets and average tangible equity complemented further improvement in our CRE concentration ratio and sound credit quality, bringing 2024 to a well-rounded conclusion. Building on this momentum, we enter 2025 with strong loan and deposit pipelines across our critical verticals, including C&I, SBA and Residential Banking and the benefit of diversified income streams. Ongoing performance will be enhanced by our pending core system conversion, which will deliver tangible operational efficiencies and customer benefits, and could be positively impacted by further Federal Open Market Committee (“FOMC”) rate decreases, an improved yield curve, a favorable banking environment and potential qualification for the Russell 2000, which would increase institutional ownership and enhance the liquidity of our stock. We continue to focus on scaling our key verticals while maintaining prudent expense management, which we believe will increase shareholder value through enhanced performance.”

    Balance Sheet Highlights

    Total assets at December 31, 2024 were $2.31 billion versus $2.27 billion at December 31, 2023. Total securities available for sale at December 31, 2024 were $83.8 million, an increase of $22.3 million from December 31, 2023, primarily driven by growth in U.S. Treasury securities, corporate bonds and mortgage-backed securities.

    Total deposits at December 31, 2024 were $1.95 billion, an increase of $49.7 million or 2.61%, compared to $1.90 billion at December 31, 2023. Our loan to deposit ratio was 102% at December 31, 2024 and 103% at December 31, 2023.

    The Company had $509.3 million in total municipal deposits at December 31, 2024, at a weighted average rate of 3.72% versus $528.1 million at a weighted average rate of 4.62% at December 31, 2023. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 39 customer relationships.

    Total borrowings at December 31, 2024 were $107.8 million, with a weighted average rate and term of 4.11% and 23 months, respectively. At December 31, 2024 and 2023, the Company had $107.8 million and $126.7 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at December 31, 2024 and 2023. At December 31, 2024 the Company had no borrowings outstanding from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”), while at December 31, 2023 the Company had $2.3 million in borrowings from the PPPLF. The Company had no borrowings outstanding under lines of credit with correspondent banks at December 31, 2024 and 2023.

    Stockholders’ equity was $196.6 million at December 31, 2024 compared to $184.8 million at December 31, 2023. The $11.8 million increase was primarily due to an increase of $9.4 million in retained earnings and a decrease of $1.1 million in accumulated other comprehensive loss. The increase in retained earnings was due primarily to net income of $12.3 million for the year ended December 31, 2024, which was offset by $2.9 million of dividends declared. The accumulated other comprehensive loss at December 31, 2024 was 0.68% of total equity and was comprised of a $1.0 million after tax net unrealized loss on the investment portfolio and a $0.3 million after tax net unrealized loss on derivatives.

    Loan Portfolio

    For the year ended December 31, 2024, the Bank’s loan portfolio grew to $1.99 billion, an increase of $28.3 million or 1.45%. Growth was concentrated primarily in residential, SBA and C&I loans. At December 31, 2024, the Company’s residential loan portfolio (including home equity) amounted to $729.3 million, with an average loan balance of $483 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate and multifamily loans totaled $1.09 billion at December 31, 2024, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 37% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continued to improve, decreasing to 385% of capital at December 31, 2024 from 432% of capital at December 31, 2023, with loans secured by office space accounting for 2.45% of the total loan portfolio and totaling $48.7 million. The Company’s loan pipeline with executed term sheets at December 31, 2024 is approximately $237 million, with approximately 89% being niche-residential, conventional C&I and SBA & USDA lending opportunities.

    The Bank’s investments in diversification continue to deliver results, with the volume of SBA & USDA loans originated for sale and the volume of residential loans originated for sale sustaining momentum. During the quarter ended December 31, 2024, the Company sold $19.1 million of residential loans under this program and recorded gains on sale of loans held-for-sale of $0.5 million. During the quarters ended December 31, 2024 and 2023, the Company sold approximately $30.9 million and $29.7 million, respectively, in the government guaranteed portion of SBA loans and recorded gains on sale of loans held-for-sale of $2.5 million and $2.3 million, respectively. We expect the volume of activity to increase in 2025. Because we continue to prioritize the management of liquidity and capital, new business development with respect to residential and SBA & USDA lending is largely focused on originations for sale over portfolio growth. Conversely, portfolio growth is the primary focus of our C&I Banking initiative, which continues to drive deposit and loan growth at our Hauppauge Business Banking Center and will expand with the pending launch of our Port Jefferson branch.

    Commercial Real Estate Statistics

    A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $13.5 million, all at floating interest rates, and CRE-owner occupied loans have a mix of floating rates. As shown below, 23% of the loan balances in these combined portfolios will mature in 2025 and 2026, with another 55% maturing in 2027.

    Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule   Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate   Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate
                                                     
    2025   10   $ 16,416   $ 1,642   4.30 %   2025   14   $ 19,527   $ 1,395   4.82 %
    2026   36     118,503     3,292   3.66 %   2026   20     42,901     2,145   3.67 %
    2027   71     176,490     2,486   4.30 %   2027   53     124,773     2,354   4.22 %
    2028   18     29,858     1,659   6.15 %   2028   12     10,221     852   7.14 %
    2029   6     4,957     826   7.70 %   2029   4     4,346     1,087   6.38 %
    2030+   2     639     320   4.47 %   2030+   4     1,169     292   5.41 %
    Fixed Rate   143     346,863     2,426   4.29 %   Fixed Rate   107     202,937     1,897   4.36 %
    Floating Rate   3     716     239   9.22 %   Floating Rate             %
    Total   146   $ 347,579   $ 2,381   4.30 %   Total   107   $ 202,937   $ 1,897   4.36 %
    CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate
                           
    2025   30   $ 23,439   $ 781   6.12 %
    2026   33     44,679     1,354   4.87 %
    2027   90     163,358     1,815   5.03 %
    2028   30     31,803     1,060   6.63 %
    2029   4     2,378     595   7.03 %
    2030+   12     5,745     479   6.24 %
    Fixed Rate   199     271,402     1,364   5.33 %
    Floating Rate   10     27,103     2,710   8.95 %
    Total CRE-Inv.   209   $ 298,505   $ 1,428   5.66 %


    Rental breakdown of Multi-Family portfolio

    The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 63% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens.

    Multi-Family Loan Portfolio – Loans by Rent Type
    Rent Type   # of Notes   Outstanding Loan Balance   % of Total Multi-Family   Avg Loan Size   LTV   Current DSCR   Avg # of Units
            ($000’s omitted)         ($000’s omitted)              
                                         
    Market   146   $ 347,579   63 %   $ 2,381   61.6 %   1.39   11
    Location                                    
    Manhattan   7   $ 17,840   3 %   $ 2,549   51.9 %   1.62   15
    Other NYC   93   $ 244,408   44 %   $ 2,628   61.2 %   1.38   10
    Outside NYC   46   $ 85,331   16 %   $ 1,855   64.8 %   1.39   13
                                         
    Stabilized   107   $ 202,937   37 %   $ 1,897   62.4 %   1.39   12
    Location                                    
    Manhattan   6   $ 9,035   2 %   $ 1,506   44.7 %   1.59   17
    Other NYC   89   $ 174,888   32 %   $ 1,965   63.2 %   1.38   11
    Outside NYC   12   $ 19,014   3 %   $ 1,584   64.4 %   1.40   16

    Office Property Exposure

    The Bank’s exposure to the Office market is minor at $49 million. The pool has a 1.28x weighted average DSCR, a 53% weighted average LTV and less than $400,000 of exposure in Manhattan.

    Asset Quality and Allowance for Credit Losses

    At December 31, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $16.4 million which represented 0.82% of total loans outstanding. Non-performing loans were $14.5 million at December 31, 2023 and $15.4 million at September 30, 2024.

    During the fourth quarter of 2024, the Bank recorded a provision for credit losses expense of $0.4 million. The December 31, 2024, allowance for credit losses balance was $22.8 million versus $19.7 million at December 31, 2023 and $23.4 million at September 30, 2024. The allowance for credit losses as a percent of total loans was 1.15% at December 31, 2024 and 1.17% at September 30, 2024, inclusive of a $3.2 million allowance on individually analyzed loans, versus 1.00% at December 31, 2023, which does not include the aforementioned $3.2 million allowance.

    Net Interest Margin

    The Bank’s net interest margin increased to 2.53% for the quarter ended December 31, 2024 compared to 2.37% in the quarter ended September 30, 2024 and 2.40% in the quarter ended December 31, 2023 due to the recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

    About Hanover Community Bank and Hanover Bancorp, Inc.

    Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey, with a new branch opening in Port Jefferson, New York in the first quarter of 2025.

    Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

    Non-GAAP Disclosure

    This discussion includes non-GAAP financial measures, including the Company’s tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

    With respect to the calculations of and reconciliations of TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

    Forward-Looking Statements

    This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

    Investor and Press Contact:
    Lance P. Burke
    Chief Financial Officer
    (516) 548-8500

    HANOVER BANCORP, INC.            
    STATEMENTS OF CONDITION (unaudited)            
    (dollars in thousands)            
                   
                   
        December 31,   September 30,   December 31,  
          2024       2024       2023    
    Assets              
    Cash and cash equivalents $ 162,857     $ 141,231     $ 177,207    
    Securities-available for sale, at fair value   83,755       98,359       61,419    
    Investments-held to maturity   3,758       3,828       4,041    
    Loans held for sale   12,404       16,721       8,904    
                   
    Loans, net of deferred loan fees and costs   1,985,524       2,005,813       1,957,199    
    Less: allowance for credit losses   (22,779 )     (23,406 )     (19,658 )  
    Loans, net   1,962,745       1,982,407       1,937,541    
                   
    Goodwill     19,168       19,168       19,168    
    Premises & fixed assets   15,337       16,373       15,886    
    Operating lease assets   8,337       8,776       9,754    
    Other assets   43,749       40,951       36,140    
      Assets $ 2,312,110     $ 2,327,814     $ 2,270,060    
                   
    Liabilities and stockholders’ equity            
    Core deposits $ 1,456,513     $ 1,453,444     $ 1,382,397    
    Time deposits   497,770       504,100       522,198    
    Total deposits   1,954,283       1,957,544       1,904,595    
                   
    Borrowings   107,805       125,805       128,953    
    Subordinated debentures   24,689       24,675       24,635    
    Operating lease liabilities   9,025       9,472       10,459    
    Other liabilities   19,670       17,979       16,588    
      Liabilities   2,115,472       2,135,475       2,085,230    
                   
    Stockholders’ equity   196,638       192,339       184,830    
      Liabilities and stockholders’ equity $ 2,312,110     $ 2,327,814     $ 2,270,060    
                   
    HANOVER BANCORP, INC.                
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)              
    (dollars in thousands, except per share data)                
                       
        Three Months Ended   Year Ended  
        12/31/2024   12/31/2023   12/31/2024   12/31/2023  
                       
    Interest income $ 33,057   $ 31,155   $ 133,022   $ 113,626  
    Interest expense   19,249     18,496     79,930     61,739  
      Net interest income   13,808     12,659     53,092     51,887  
    Provision for credit losses   400     200     4,940     2,132  
      Net interest income after provision for credit losses   13,408     12,459     48,152     49,755  
                       
    Loan servicing and fee income   981     778     3,690     2,809  
    Service charges on deposit accounts   136     85     469     297  
    Gain on sale of loans held-for-sale   3,014     2,326     10,940     5,841  
    Gain on sale of investments   27         31      
    Other operating income   29     65     209     1,744  
      Non-interest income   4,187     3,254     15,339     10,691  
                       
    Compensation and benefits   6,699     5,242     25,600     21,562  
    Occupancy and equipment   1,810     1,746     7,222     6,628  
    Data processing   536     530     2,096     2,063  
    Professional fees   782     729     3,079     3,191  
    Federal deposit insurance premiums   375     375     1,418     1,476  
    Other operating expenses   2,198     2,048     7,697     7,200  
      Non-interest expense   12,400     10,670     47,112     42,120  
                       
      Income before income taxes   5,195     5,043     16,379     18,326  
    Income tax expense   1,293     1,280     4,033     4,737  
                       
      Net income $ 3,902   $ 3,763   $ 12,346   $ 13,589  
                       
    Earnings per share (“EPS”):(1)                
    Basic $ 0.53   $ 0.51   $ 1.67   $ 1.85  
    Diluted $ 0.52   $ 0.51   $ 1.66   $ 1.84  
                       
    Average shares outstanding for basic EPS (1)(2)   7,427,583     7,324,133     7,403,758     7,326,903  
    Average shares outstanding for diluted EPS (1)(2)   7,456,471     7,383,529     7,432,741     7,386,299  
                       
    (1) Calculation includes common stock and Series A preferred stock.              
    (2) Average shares outstanding before subtracting participating securities.              
                       
    Note: Prior period information has been adjusted to conform to current period presentation.          
    HANOVER BANCORP, INC.                    
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)                  
    QUARTERLY TREND                    
    (dollars in thousands, except per share data)                    
                           
        Three Months Ended  
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023  
                           
    Interest income $ 33,057   $ 34,113   $ 33,420   $ 32,432   $ 31,155  
    Interest expense   19,249     21,011     20,173     19,497     18,496  
      Net interest income   13,808     13,102     13,247     12,935     12,659  
    Provision for credit losses   400     200     4,040     300     200  
      Net interest income after provision for credit losses   13,408     12,902     9,207     12,635     12,459  
                           
    Loan servicing and fee income   981     960     836     913     778  
    Service charges on deposit accounts   136     123     114     96     85  
    Gain on sale of loans held-for-sale   3,014     2,834     2,586     2,506     2,326  
    Gain on sale of investments   27         4          
    Other operating income   29     37     82     61     65  
      Non-interest income   4,187     3,954     3,622     3,576     3,254  
                           
    Compensation and benefits   6,699     6,840     6,499     5,562     5,242  
    Occupancy and equipment   1,810     1,799     1,843     1,770     1,746  
    Data processing   536     547     495     518     530  
    Professional fees   782     762     717     818     729  
    Federal deposit insurance premiums   375     360     365     318     375  
    Other operating expenses   2,198     1,930     1,751     1,818     2,048  
      Non-interest expense   12,400     12,238     11,670     10,804     10,670  
                           
      Income before income taxes   5,195     4,618     1,159     5,407     5,043  
    Income tax expense   1,293     1,079     315     1,346     1,280  
                           
      Net income $ 3,902   $ 3,539   $ 844   $ 4,061   $ 3,763  
                           
    Earnings per share (“EPS”):(1)                    
    Basic $ 0.53   $ 0.48   $ 0.11   $ 0.55   $ 0.51  
    Diluted $ 0.52   $ 0.48   $ 0.11   $ 0.55   $ 0.51  
                           
    Average shares outstanding for basic EPS (1)(2)   7,427,583     7,411,064     7,399,816     7,376,227     7,324,133  
    Average shares outstanding for diluted EPS (1)(2)   7,456,471     7,436,068     7,449,110     7,420,926     7,383,529  
                           
    (1) Calculation includes common stock and Series A preferred stock.                  
    (2) Average shares outstanding before subtracting participating securities.                  
                           
    Note: Prior period information has been adjusted to conform to current period presentation.              
    HANOVER BANCORP, INC.                
    SELECTED FINANCIAL DATA (unaudited)              
    (dollars in thousands)                
                     
                     
      Three Months Ended   Year Ended  
      12/31/2024   12/31/2023   12/31/2024   12/31/2023  
    Profitability:                
    Return on average assets   0.70 %     0.69 %     0.55 %     0.66 %  
    Return on average equity (1)   7.98 %     8.10 %     6.45 %     7.44 %  
    Return on average tangible equity (1)   8.87 %     9.06 %     7.18 %     8.33 %  
    Pre-provision net revenue to average assets   1.00 %     0.97 %     0.95 %     0.99 %  
    Yield on average interest-earning assets   6.06 %     5.91 %     6.12 %     5.67 %  
    Cost of average interest-bearing liabilities   4.24 %     4.19 %     4.40 %     3.68 %  
    Net interest rate spread (2)   1.82 %     1.72 %     1.72 %     1.99 %  
    Net interest margin (3)   2.53 %     2.40 %     2.44 %     2.59 %  
    Non-interest expense to average assets   2.21 %     1.97 %     2.11 %     2.04 %  
    Operating efficiency ratio (4)   69.01 %     67.05 %     68.88 %     67.31 %  
                     
    Average balances:                
    Interest-earning assets $ 2,169,595     $ 2,090,839     $ 2,174,000     $ 2,004,634    
    Interest-bearing liabilities   1,804,700       1,751,330       1,818,110       1,678,464    
    Loans   2,003,686       1,910,409       2,005,524       1,829,586    
    Deposits   1,853,828       1,767,753       1,840,378       1,675,913    
    Borrowings   153,126       170,793       174,327       182,307    
                     
                     
    (1) Includes common stock and Series A preferred stock.              
    (2) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (3) Represents net interest income divided by average interest-earning assets.          
    (4) Represents non-interest expense divided by the sum of net interest income and non-interest income excluding gain on sale of securities available for sale.
    HANOVER BANCORP, INC.                
    SELECTED FINANCIAL DATA (unaudited)                
    (dollars in thousands, except share and per share data)              
                     
      At or For the Three Months Ended  
      12/31/2024   9/30/2024   6/30/2024   3/31/2024  
    Asset quality:                
    Provision for credit losses – loans (1) $ 400     $ 200     $ 3,850     $ 300    
    Net (charge-offs)/recoveries   (1,027 )     (438 )     (79 )     (85 )  
    Allowance for credit losses   22,779       23,406       23,644       19,873    
    Allowance for credit losses to total loans (2)   1.15 %     1.17 %     1.17 %     0.99 %  
    Non-performing loans $ 16,368     $ 15,365     $ 15,828     $ 14,878    
    Non-performing loans/total loans   0.82 %     0.77 %     0.79 %     0.74 %  
    Non-performing loans/total assets   0.71 %     0.66 %     0.68 %     0.64 %  
    Allowance for credit losses/non-performing loans   139.17 %     152.33 %     149.38 %     133.57 %  
                     
    Capital (Bank only):                
    Tier 1 Capital $ 201,744     $ 198,196     $ 195,703     $ 195,889    
    Tier 1 leverage ratio   9.13 %     8.85 %     8.89 %     8.90 %  
    Common equity tier 1 capital ratio   13.32 %     12.99 %     12.78 %     12.99 %  
    Tier 1 risk based capital ratio   13.32 %     12.99 %     12.78 %     12.99 %  
    Total risk based capital ratio   14.58 %     14.24 %     14.21 %     14.19 %  
                     
    Equity data:                
    Shares outstanding (3)   7,427,127       7,428,366       7,402,163       7,392,412    
    Stockholders’ equity $ 196,638     $ 192,339     $ 190,072     $ 189,543    
    Book value per share (3)   26.48       25.89       25.68       25.64    
    Tangible common equity (3)   177,220       172,906       170,625       170,080    
    Tangible book value per share (3)   23.86       23.28       23.05       23.01    
    Tangible common equity (“TCE”) ratio (3)   7.73 %     7.49 %     7.38 %     7.43 %  
                     
    (1) Excludes $0, $0, $190 thousand and $0 provision for credit losses on unfunded commitments for the quarters ended 12/31/24,
    9/30/24, 6/30/24 and 3/31/24, respectively.                
    (2) Calculation excludes loans held for sale.                
    (3) Includes common stock and Series A preferred stock.                
                     
    Note: Prior period information has been adjusted to conform to current period presentation.          
    HANOVER BANCORP, INC.                
    STATISTICAL SUMMARY                
    QUARTERLY TREND                
    (unaudited, dollars in thousands, except share data)              
                       
        12/31/2024   9/30/2024   6/30/2024   3/31/2024  
                       
    Loan distribution (1):                
    Residential mortgages $ 702,832     $ 719,037     $ 733,040     $ 730,017    
    Multifamily     550,570       557,634       562,503       568,043    
    Commercial real estate   536,288       529,948       549,725       556,708    
    Commercial & industrial   168,909       171,899       139,209       123,419    
    Home equity   26,422       26,825       27,992       26,879    
    Consumer     503       470       485       449    
                       
    Total loans $ 1,985,524     $ 2,005,813 $ 2,012,954     $ 2,005,515    
                       
    Sequential quarter growth rate   -1.01 %     -0.35 %     0.37 %     2.47 %  
                       
    CRE concentration ratio   385 %     397 %     403 %     416 %  
                       
    Loans sold during the quarter $ 53,499     $ 43,537     $ 35,302     $ 26,735    
                       
    Funding distribution:                
    Demand   $ 211,656     $ 206,327     $ 199,835     $ 202,934    
    N.O.W.     692,890       621,880       661,998       708,897    
    Savings     48,885       53,024       44,821       48,081    
    Money market   503,082       572,213       571,170       493,123    
    Total core deposits   1,456,513       1,453,444       1,477,824       1,453,035    
    Time     497,770       504,100       464,105       464,227    
    Total deposits   1,954,283       1,957,544       1,941,929       1,917,262    
    Borrowings   107,805       125,805       148,953       148,953    
    Subordinated debentures   24,689       24,675       24,662       24,648    
                       
    Total funding sources $ 2,086,777     $ 2,108,024 $ 2,115,544     $ 2,090,863    
                       
    Sequential quarter growth rate – total deposits   -0.17 %     0.80 %     1.29 %     0.67 %  
                       
    Period-end core deposits/total deposits ratio   74.53 %     74.25 %     76.10 %     75.79 %  
                       
    Period-end demand deposits/total deposits ratio   10.83 %     10.54 %     10.29 %     10.58 %  
                       
    (1) Excluding loans held for sale                
    HANOVER BANCORP, INC.                    
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)(unaudited)          
    (dollars in thousands, except share and per share amounts)              
                         
                         
      12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023  
    Tangible common equity                    
    Total equity (2) $ 196,638     $ 192,339     $ 190,072     $ 189,543     $ 184,830    
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )  
    Less: core deposit intangible   (250 )     (265 )     (279 )     (295 )     (311 )  
    Tangible common equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
                         
    Tangible common equity (“TCE”) ratio                  
    Tangible common equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
    Total assets   2,312,110       2,327,814       2,331,098       2,307,508       2,270,060    
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )  
    Less: core deposit intangible   (250 )     (265 )     (279 )     (295 )     (311 )  
    Tangible assets $ 2,292,692     $ 2,308,381     $ 2,311,651     $ 2,288,045     $ 2,250,581    
    TCE ratio (2)   7.73 %     7.49 %     7.38 %     7.43 %     7.35 %  
                         
    Tangible book value per share                    
    Tangible equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
    Shares outstanding (2)   7,427,127       7,428,366       7,402,163       7,392,412       7,345,012    
    Tangible book value per share (2) $ 23.86     $ 23.28     $ 23.05     $ 23.01     $ 22.51    
                         
    (1) A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.  
                         
    (2) Includes common stock and Series A preferred stock.  
    HANOVER BANCORP, INC.                      
    NET INTEREST INCOME ANALYSIS                      
    For the Three Months Ended December 31, 2024 and 2023                    
    (unaudited, dollars in thousands)                      
                           
                           
        2024       2023  
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,003,686   $ 30,753   6.11 %   $ 1,910,409   $ 28,394   5.90 %
    Investment securities   94,886     1,381   5.79 %     56,834     940   6.56 %
    Interest-earning cash   62,850     747   4.73 %     114,033     1,570   5.46 %
    FHLB stock and other investments   8,173     176   8.57 %     9,563     251   10.41 %
    Total interest-earning assets   2,169,595     33,057   6.06 %     2,090,839     31,155   5.91 %
    Non interest-earning assets:                      
    Cash and due from banks   8,973             7,429        
    Other assets   50,068             50,677        
    Total assets $ 2,228,636           $ 2,148,945        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,152,755   $ 11,916   4.11 %   $ 1,039,062   $ 11,547   4.41 %
    Time deposits   498,819     5,642   4.50 %     541,475     5,231   3.83 %
    Total savings and time deposits   1,651,574     17,558   4.23 %     1,580,537     16,778   4.21 %
    Borrowings   128,446     1,365   4.23 %     146,167     1,392   3.78 %
    Subordinated debentures   24,680     326   5.25 %     24,626     326   5.25 %
    Total interest-bearing liabilities   1,804,700     19,249   4.24 %     1,751,330     18,496   4.19 %
    Demand deposits   202,254             187,216        
    Other liabilities   27,168             26,031        
    Total liabilities   2,034,122             1,964,577        
    Stockholders’ equity   194,514             184,368        
    Total liabilities & stockholders’ equity $ 2,228,636           $ 2,148,945        
    Net interest rate spread         1.82 %           1.72 %
    Net interest income/margin     $ 13,808   2.53 %       $ 12,659   2.40 %
                           
    HANOVER BANCORP, INC.                      
    NET INTEREST INCOME ANALYSIS                      
    For the Years Ended December 31, 2024 and 2023                    
    (unaudited, dollars in thousands)                      
                           
                           
        2024       2023  
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,005,524   $ 122,970 6.13 %   $ 1,829,586   $ 103,975 5.68 %
    Investment securities   98,238     5,992   6.10 %     26,171     1,534   5.86 %
    Interest-earning cash   60,868     3,191   5.24 %     139,006     7,243   5.21 %
    FHLB stock and other investments   9,370     869   9.27 %     9,871     874   8.85 %
    Total interest-earning assets   2,174,000     133,022   6.12 %     2,004,634     113,626   5.67 %
    Non interest-earning assets:                      
    Cash and due from banks   8,567             8,034        
    Other assets   50,461             52,953        
    Total assets $ 2,233,028           $ 2,065,621        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,160,115   $ 51,457   4.44 %   $ 1,029,415   $ 39,430   3.83 %
    Time deposits   483,668     21,060   4.35 %     466,742     14,888   3.19 %
    Total savings and time deposits   1,643,783     72,517   4.41 %     1,496,157     54,318   3.63 %
    Borrowings   149,667     6,109   4.08 %     157,701     6,124   3.88 %
    Subordinated debentures   24,660     1,304   5.29 %     24,606     1,297   5.27 %
    Total interest-bearing liabilities   1,818,110     79,930   4.40 %     1,678,464     61,739   3.68 %
    Demand deposits   196,595             179,756        
    Other liabilities   27,000             24,701        
    Total liabilities   2,041,705             1,882,921        
    Stockholders’ equity   191,323             182,700        
    Total liabilities & stockholders’ equity $ 2,233,028           $ 2,065,621        
    Net interest rate spread         1.72 %           1.99 %
    Net interest income/margin     $ 53,092   2.44 %       $ 51,887   2.59 %
                           

    The MIL Network

  • MIL-OSI: Nasdaq Reports Fourth Quarter and Full Year 2024 Results; A Year of Strong Financial Performance and Strategic Execution

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 29, 2025 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the fourth quarter and full year of 2024

    • 2024 net revenues1 were $4.6 billion, or $4.7 billion on a non-GAAP basis2, an increase of 19% over 2023, or up 9% on an adjusted3 basis. This included Solutions4 revenue increasing 25%, or up 10% on an adjusted basis.
    • Fourth quarter 2024 net revenue was $1.2 billion, an increase of 10% over the fourth quarter of 2023. This included Solutions revenue increasing 10%, or up 9% on an adjusted basis.
    • Annualized Recurring Revenue (ARR)5 of $2.8 billion increased 7% over the fourth quarter of 2023. Annualized SaaS revenues increased 14% and represented 37% of ARR.
    • Financial Technology revenue of $438 million increased 10% over the fourth quarter of 2023, or up 7% on an adjusted basis.
    • Index revenue of $188 million grew 29%, with $80 billion of net inflows over the trailing twelve months and $28 billion in the fourth quarter.
    • GAAP diluted earnings per share fell 7% in 2024 and grew 72% in the fourth quarter of 2024. Non-GAAP diluted earnings per share was flat in 2024 and grew 5% in the fourth quarter of 2024, or grew 11% and 10% on organic6 basis, respectively.
    • In the fourth quarter of 2024, the company returned $138 million to shareholders through dividends. The company also repurchased $181 million of senior unsecured notes in the fourth quarter of 2024.

    Fourth Quarter and Full Year 2024 Highlights

    (US$ millions,
    except per share,
    % changes YoY)
    4Q24 Change % Adjusted
    change
    3%
    Organic
    change %
    2024 Change % Adjusted
    change
    3%
    Organic
    change %
    GAAP Solutions revenue $949 10%     $3,593 25%    
    Non-GAAP Solutions revenue $949 10% 9% 9% $3,627 26% 10% 10%
    Market Services net revenue $268 8% 12% 8% $1,020 3% 4% 3%
    GAAP net revenue $1,227 10%     $4,649 19%    
    Non-GAAP net revenue $1,227 10% 10% 9% $4,683 20% 9% 8%
    GAAP operating income $517 47%     $1,798   14%  
    Non-GAAP operating income $671 10% 13% 12% $2,521 22% 11% 9%
    ARR $2,768 7% 7% 7% $2,768 7% 7% 7%
    GAAP diluted EPS $0.61 72%     $1.93 (7)%    
    Non-GAAP diluted EPS $0.76 5%   10% $2.82 0%   11%


    Adena Friedman, Chair and CEO
    said, “2024 was a transformative year for Nasdaq. With the integration of AxiomSL and Calypso largely complete, we’ve made substantial progress as a scalable platform company. We are executing well across our strategic priorities, including driving cross-sell opportunities, innovating across our solutions, and expanding client relationships with our One Nasdaq strategy.

    Looking to 2025, we are well positioned to provide more value to our clients while driving profitable and durable growth as the trusted fabric of the world’s financial system.”

    Sarah Youngwood, Executive Vice President and CFO said, “After setting ambitious targets, Nasdaq delivered strong revenue growth and profitability across 2024 and is tracking ahead of schedule against our deleveraging and cost synergy targets.

    Our achievements this year reflect our team’s relentless focus on our clients and our ability to deliver outsized, long-term growth within our large and expanding market opportunity.”

    FINANCIAL REVIEW

    • 2024 net revenue was $4,649 million, reflecting 19% growth versus the prior year period while non-GAAP net revenue was $4,683 million. Adjusted net revenue growth was 9%.
    • Fourth quarter 2024 net revenue was $1,227 million, reflecting 10% growth versus the prior year period. Adjusted net revenue growth was also 10%.
    • Solutions revenue was $949 million in the fourth quarter of 2024, up 10% versus the prior year period, or up 9% on an adjusted basis, reflecting strong growth from Index and Financial Technology.
    • ARR grew 7% year over year in the fourth quarter of 2024 with 11% ARR growth for Financial Technology, or 12% on an organic basis, and 3% ARR growth for Capital Access Platforms.
    • Market Services net revenue was $268 million in the fourth quarter of 2024, up 8% versus the prior year period, or 12% growth on an adjusted basis. The increase was primarily driven by a $15 million increase in U.S. equity derivatives and a $14 million increase in U.S. cash equities, partly offset by a $4 million decrease in U.S. tape plan revenue.
    • 2024 GAAP operating expenses were $2,851 million, an increase of 23% versus the prior year period. The increase for the year was due to expenses related to the acquisition of Adenza, which resulted in an incremental $288 million in amortization expense of acquired intangible assets, $220 million of other AxiomSL and Calypso operating expenses, as well as organic growth driven by increased investments in technology and people to drive innovation and long-term growth, partially offset by lower merger and strategic initiative costs.
    • Fourth quarter 2024 GAAP operating expenses were $710 million, a decrease of 7% versus the prior year period. The decrease in the fourth quarter was primarily due to lower merger and strategic initiative costs and lower general and administrative expense, partially offset by expenses related to the acquisition of Adenza, which resulted in an incremental $29 million in amortization expense of acquired intangible assets, $24 million of other AxiomSL and Calypso operating expenses, as well as organic growth driven by increased investments in technology and people to drive innovation and long-term growth.
    • 2024 non-GAAP operating expenses were $2,162 million, an increase of 18% over 2023, or 6% growth on an adjusted basis. Fourth quarter 2024 non-GAAP operating expenses were $556 million, reflecting 10% growth versus the prior year period, or 6% growth on an adjusted basis. The increase for the full year and fourth quarter included $220 million and $24 million, respectively, of AxiomSL and Calypso operating expenses. The increases for the year and quarter on an adjusted basis reflected growth driven by increased investments in technology and people to drive innovation and long-term growth, as well as increased regulatory costs, partially offset by the benefit of synergies.
    • Cash flow from operations was $705 million for the fourth quarter and $1,939 million for 2024, enabling the company to make additional progress on its deleveraging plan. In the fourth quarter, the company returned $138 million to shareholders through dividends. The company also repurchased $181 million of senior unsecured notes in the fourth quarter of 2024. As of December 31, 2024, there was $1.7 billion remaining under the board authorized share repurchase program.

    2025 EXPENSE AND TAX GUIDANCE UPDATE7

    • The company is initiating its 2025 non-GAAP operating expense guidance at a range of $2,245 million to $2,325 million, and its 2025 non-GAAP tax rate guidance to be in the range of 22.5% to 24.5%.

    STRATEGIC AND BUSINESS UPDATES

    • Strong execution across Financial Technology led to double-digit ARR growth in the fourth quarter. Financial Technology ARR growth was up 12% on an organic basis, in the fourth quarter with 120 new clients, 127 upsells, and 4 cross-sells. Division revenue increased 7% on an adjusted basis. Financial Technology had an exceptional year for new bookings, including a number of sizeable and strategic enterprise deals, underscoring its leadership position and expanding Nasdaq’s right to win across its products. Fourth quarter highlights included:
      • Financial Technology continued its international expansion with several strategic enterprise deals. In the fourth quarter, Nasdaq signed a long-term agreement to provide a future-proof, regulatory management solution through AxiomSL to AuRep, a collaborative joint venture of banks and financial service providers in Austria. The companies will provide additional details on this important partnership in the coming weeks. AxiomSL also secured an upsell with Société Générale to manage its domestic regulatory reporting needs. During the quarter, Calypso also expanded its reach with international customers through upsells with a large European bank and a Middle Eastern bank.
      • Financial Crime Management Technology generated 23% ARR growth with 114% net revenue retention. In the fourth quarter, Nasdaq Verafin added 102 new SMB clients, completed a new cross-sell with a Tier 1 bank, and launched in Europe. Nasdaq Verafin’s data consortium continues to benefit from strong growth in its client base, which now represents nearly $10 trillion in assets.
      • AxiomSL and Calypso accelerated cloud bookings. Cloud bookings as a percent of AxiomSL and Calypso’s combined new annual contract value was 52% for 2024 and 60% in the fourth quarter, increasing the combined business’ cloud mix of ARR to 27% at year end.
    • Index delivered another quarter of outstanding performance benefiting from its growth strategy across innovation, globalization, and institutional client expansion. In 2024, Nasdaq’s Index business launched a record 116 new products with its clients, more than half of which were international, 27 were within the institutional insurance annuity space, and 30 were launched in partnership with new Index clients. For the year, the business had $80 billion of net inflows, including $28 billion in the fourth quarter, and reported its fifth consecutive record quarter in ETP AUM, reaching $647 billion at quarter end.
    • Nasdaq extended listing leadership in 2024 with its sixth consecutive year as the top U.S. exchange by number of IPOs and proceeds raised. For the year, Nasdaq welcomed 180 IPOs, representing $23 billion in total proceeds raised. New listings included 130 operating companies, headlined by Lineage, the largest IPO of the year. In 2024, Nasdaq had an 80% win rate among eligible operating company IPOs in the U.S. In the third quarter, Nasdaq celebrated its 500th listing transfer, bringing the cumulative market capitalization at transfer to nearly $3 trillion. The company had 14 new transfers in the fourth quarter, including Palantir, the largest transfer on a U.S. exchange in 2024, bringing the total to 30 new switches with over $180 billion in market value for the year.  
    • Market Services achieved record fourth quarter and full year net revenue. Fourth quarter net revenue benefited from momentum in U.S. cash equities, including the Closing Cross reaching a new record in fourth quarter share volume, and record U.S. equity derivatives volumes. 2024 Market Services net revenue growth reflected healthy growth in U.S. cash equities, with the Closing Cross setting full year records in both share volume and notional value traded, and index options revenue more than doubling.
    • Nasdaq successfully delivered on its 2024 strategic priorities – Integrate, Innovate, Accelerate – positioning the company to capitalize on opportunities for sustainable, scalable, and resilient growth.
      • Integrate – Nasdaq finished the year ahead of its net expense synergy and deleveraging goals. The company has fully actioned the $80 million net expense synergies goal that was announced with the acquisition of AxiomSL and Calypso, a year ahead of the initial target. Nasdaq is broadening its efficiency program beyond the Financial Technology division and now expects to action annual cost savings of $140 million by the end of 2025, inclusive of the net expense synergies related to the AxiomSL and Calypso acquisition.
      • Innovate – In 2024, Nasdaq demonstrated its innovation leadership with the launch of AI-powered solutions and product enhancements across its divisions. Nasdaq has a robust pipeline of new AI capabilities to deliver through our software and analytics solutions, with several feature launches planned for 2025. The company has advanced its focus from “exploration and experimentation” to driving “impact” as it targets AI-driven productivity enhancements across the organization.
      • Accelerate – The company continues to make progress on its One Nasdaq strategy, with 17 cross-sell deals since the Adenza acquisition across solutions such as Nasdaq Surveillance, AxiomSL, and Verafin. Nasdaq remains on track to exceed $100 million in run-rate revenue from cross-sells by the end of 2027.

    ____________
    1 Represents revenue less transaction-based expenses.
    2 Refer to our reconciliations of U.S. GAAP to non-GAAP Solutions revenue, net revenue, net income attributable to Nasdaq, diluted earnings per share, operating income, operating expenses and organic impacts included in the attached schedules.
    3Adjusted change reflects AxiomSL and Calypso on a pro forma basis (including ratable revenue recognition for AxiomSL in 2024 and 2023). Adjusted change also excludes the impacts of foreign currency except for AxiomSL and Calypso, which will be calculated on an organic basis beginning in 2025, and the previously announced one-time revenue benefits in Market Services in 4Q23 and Index in 1Q24. These results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this earnings release.
    4 Constitutes revenue from our Capital Access Platforms and Financial Technology segments.
    5 Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
    6 Organic changes reflect adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture.
    7 U.S. GAAP operating expense and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.

    ABOUT NASDAQ

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

    NON-GAAP INFORMATION

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

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

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

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

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

    Restructuring programs: In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. We further expanded this program in the fourth quarter of 2024 to accelerate our momentum and further optimize our efficiencies (efficiency program). We have incurred costs principally related to employee-related costs, contract terminations, real estate impairments and other related costs and expect to incur additional costs in these areas in an effort to accelerate efficiencies through location strategy and enhanced AI capabilities. Actions taken as part of this program will be complete by the end of 2025, while certain costs may be recognized in the first half of 2026. We expect to achieve benefits primarily in the form of expense synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In connection with the program, we expect to incur pre-tax charges principally related to employee-related costs, consulting, asset impairments and contract terminations over a two-year period. We expect to achieve benefits in the form of both increased customer engagement and operating efficiencies. Costs related to the Adenza restructuring and the divisional alignment programs are recorded as “restructuring charges” in our consolidated statements of income. We exclude charges associated with these programs for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

    WEBSITE DISCLOSURE

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

    Media Relations Contact
    Nick Jannuzzi
    +1.973.760.1741
    Nicholas.Jannuzzi.@Nasdaq.com

    Investor Relations Contact
    Ato Garrett
    +1.212.401.8737
    Ato.Garrett@Nasdaq.com

    NDAQF

    Nasdaq, Inc.
    Condensed Consolidated Statements of Income
    (in millions, except per share amounts)
     
               
      Three Months Ended   Year Ended
      December 31,   December 31,   December 31,   December 31,
       2024     2023     2024     2023 
        (unaudited)   (unaudited)   (unaudited)    
    Revenues:              
    Capital Access Platforms $ 511     $ 461     $ 1,972     $ 1,770  
    Financial Technology   438       399       1,621       1,099  
    Market Services   1,070       778       3,771       3,156  
    Other Revenues   10       10       36       39  
      Total revenues   2,029       1,648       7,400       6,064  
    Transaction-based expenses:              
    Transaction rebates   (548 )     (462 )     (2,026 )     (1,838 )
    Brokerage, clearance and exchange fees   (254 )     (69 )     (725 )     (331 )
    Revenues less transaction-based expenses   1,227       1,117       4,649       3,895  
                   
    Operating Expenses:              
    Compensation and benefits   324       305       1,324       1,082  
    Professional and contract services   44       36       152       128  
    Technology and communication infrastructure   75       65       281       233  
    Occupancy   28       30       112       129  
    General, administrative and other   24       52       109       113  
    Marketing and advertising   20       16       54       47  
    Depreciation and amortization   152       125       613       323  
    Regulatory   18       8       55       34  
    Merger and strategic initiatives   12       97       35       148  
    Restructuring charges   13       31       116       80  
      Total operating expenses   710       765       2,851       2,317  
    Operating income   517       352       1,798       1,578  
    Interest income   8       30       28       115  
    Interest expense   (101 )     (111 )     (414 )     (284 )
    Other income (loss)   7       5       21       (1 )
    Net income (loss) from unconsolidated investees   9       2       16       (7 )
    Income before income taxes   440       278       1,449       1,401  
    Income tax provision   85       81       334       344  
    Net income   355       197       1,115       1,057  
    Net loss attributable to noncontrolling interests               2       2  
    Net income attributable to Nasdaq $ 355     $ 197     $ 1,117     $ 1,059  
                   
    Per share information:              
    Basic earnings per share $ 0.62     $ 0.36     $ 1.94     $ 2.10  
    Diluted earnings per share $ 0.61     $ 0.36     $ 1.93     $ 2.08  
    Cash dividends declared per common share $ 0.24     $ 0.22     $ 0.94     $ 0.86  
                   
    Weighted-average common shares outstanding              
    for earnings per share:              
    Basic   574.8       547.1       575.4       504.9  
    Diluted   579.7       550.6       579.2       508.4  
                     
    Nasdaq, Inc.
    Revenue Detail
    (in millions)
     
               
      Three Months Ended   Year Ended
      December 31,   December 31,   December 31,   December 31,
       2024     2023     2024     2023 
      (unaudited)   (unaudited)   (unaudited)    
    CAPITAL ACCESS PLATFORMS              
    Data and Listing Services revenues $ 192     $ 189     $ 754     $ 749  
    Index revenues   188       146       706       528  
    Workflow and Insights revenues   131       126       512       493  
    Total Capital Access Platforms revenues   511       461       1,972       1,770  
                   
    FINANCIAL TECHNOLOGY              
    Financial Crime Management Technology revenues   73       60       273       223  
    Regulatory Technology revenues   98       110       352       212  
    Capital Markets Technology revenues   267       229       996       664  
    Total Financial Technology revenues   438       399       1,621       1,099  
                   
    MARKET SERVICES              
    Market Services revenues   1,070       778       3,771       3,156  
    Transaction-based expenses:              
    Transaction rebates   (548 )     (462 )     (2,026 )     (1,838 )
    Brokerage, clearance and exchange fees   (254 )     (69 )     (725 )     (331 )
    Total Market Services revenues, net   268       247       1,020       987  
                   
    OTHER REVENUES   10       10       36       39  
                   
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 1,227     $ 1,117     $ 4,649     $ 3,895  
                   
                   
    Nasdaq, Inc.
    Condensed Consolidated Balance Sheets
    (in millions)
               
          December 31,   December 31,
           2024     2023 
    Assets   (unaudited)    
    Current assets:        
      Cash and cash equivalents   $ 592     $ 453  
      Restricted cash and cash equivalents     31       20  
      Default funds and margin deposits     5,664       7,275  
      Financial investments     184       188  
      Receivables, net     1,022       929  
      Other current assets     293       231  
    Total current assets     7,786       9,096  
    Property and equipment, net     593       576  
    Goodwill     13,957       14,112  
    Intangible assets, net     6,905       7,443  
    Operating lease assets     375       402  
    Other non-current assets     779       665  
    Total assets   $ 30,395     $ 32,294  
               
    Liabilities        
    Current liabilities:        
      Accounts payable and accrued expenses   $ 269     $ 332  
      Section 31 fees payable to SEC     319       84  
      Accrued personnel costs     325       303  
      Deferred revenue     711       594  
      Other current liabilities     215       146  
      Default funds and margin deposits     5,664       7,275  
      Short-term debt     399       291  
    Total current liabilities     7,902       9,025  
    Long-term debt     9,081       10,163  
    Deferred tax liabilities, net     1,594       1,642  
    Operating lease liabilities     388       417  
    Other non-current liabilities     230       220  
    Total liabilities     19,195       21,467  
             
    Commitments and contingencies        
    Equity        
    Nasdaq stockholders’ equity:        
      Common stock     6       6  
      Additional paid-in capital     5,530       5,496  
      Common stock in treasury, at cost     (647 )     (587 )
      Accumulated other comprehensive loss     (2,099 )     (1,924 )
      Retained earnings     8,401       7,825  
    Total Nasdaq stockholders’ equity     11,191       10,816  
      Noncontrolling interests     9       11  
    Total equity     11,200       10,827  
    Total liabilities and equity   $ 30,395     $ 32,294  
               
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Net Income Attributable to Nasdaq and Diluted Earnings Per Share
    (in millions, except per share amounts)
    (unaudited)
                       
                   
           Three Months Ended   Year Ended
          December 31,   December 31,   December 31,   December 31,
           2024     2023     2024     2023 
                       
    U.S. GAAP net income attributable to Nasdaq   $ 355     $ 197     $ 1,117     $ 1,059  
    Non-GAAP adjustments:                
      Adenza purchase accounting adjustment (1)                 34        
      Amortization expense of acquired intangible assets (2)     122       95       488       206  
      Merger and strategic initiatives expense (3)     12       97       35       148  
      Restructuring charges (4)     13       31       116       80  
      Lease asset impairments (5)           1             25  
      Net (income) loss from unconsolidated investees (6)     (9 )     (2 )     (16 )     7  
      Extinguishment of debt (7)     4             4        
      Legal and regulatory matters (8)     2       23       20       12  
      Pension settlement charge (9)           9       23       9  
      Other (income) loss (10)     (6 )     3       (15 )     21  
      Total non-GAAP adjustments     138       257       689       508  
      Non-GAAP adjustment to the income tax provision (11)     (55 )     (59 )     (208 )     (134 )
      Tax on intra-group transfer of intellectual property assets (12)                 33        
      Total non-GAAP adjustments, net of tax     83       198       514       374  
    Non-GAAP net income attributable to Nasdaq   $ 438     $ 395     $ 1,631     $ 1,433  
                       
    U.S. GAAP diluted earnings per share   $ 0.61     $ 0.36     $ 1.93     $ 2.08  
      Total adjustments from non-GAAP net income above     0.15       0.36       0.89       0.74  
    Non-GAAP diluted earnings per share   $ 0.76     $ 0.72     $ 2.82     $ 2.82  
                       
    Weighted-average diluted common shares outstanding for earnings per share:     579.7       550.6       579.2       508.4  
                       
                       
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
           
    (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
           
    (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months and years ended December 31, 2024 and December 31, 2023, these costs primarily relate to the Adenza acquisition. For the year ended December 31, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the year ended December 31, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (6) We exclude our share of the earnings and losses of our equity method investments. This provides a more meaningful analysis of Nasdaq’s ongoing operating performance or comparisons in Nasdaq’s performance between periods.
                       
    (7) For the three months and year ended December 31, 2024, we recorded costs related to the early extinguishment of debt. This charge is recorded in general, administrative expense in our Condensed Consolidated Statements of Income.
                       
    (8) For the year ended December 31, 2024, these items primarily included the settlement of a Swedish Financial Supervisory Authority (SFSA) fine and accruals related to certain legal matters. For the three months and year ended December 31, 2023, these charges primarily included accruals related to certain legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. For the year ended December 31, 2023, these accruals were offset with insurance recoveries related to legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income.
                       
    (9) For the years ended December 31, 2024 and 2023 and for the three months ended December 31, 2023, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    (10) For the three months and year ended December 31, 2024, other items include net gains from strategic investments entered into through our corporate venture program, which are included in other income (loss) in our Consolidated Statements of Income. For the three months and year ended December 31, 2023, other items included certain financing costs related to the Adenza acquisition and a net loss from a strategic investments entered into through our corporate venture program.
                       
    (11) The non-GAAP adjustment to the income tax provision primarily includes the tax impact of each non-GAAP adjustment. For the three months and year ended December 31, 2024, we recorded a tax benefit related to return to provision adjustments and release of tax reserves due to lapse in statute of limitations.
                       
    (12) For the year ended December 31, 2024, the completion of an intra-group transfer of intellectual property assets to U.S. headquarters resulted in a net tax expense of $33 million.
                       
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Revenues Less Transaction-Based Expenses
    (in millions)
    (unaudited)
           
      Year Ended
      December 31, 2024
      U.S. GAAP Revenues
    Less Transaction-
    Based Expenses
    Adenza purchase
    accounting
    adjustment
    (1)
    Non-GAAP Revenues
    Less Transaction-
    Based Expenses
    CAPITAL ACCESS PLATFORMS $ 1,972 $ $ 1,972
           
    FINANCIAL TECHNOLOGY      
    Financial Crime Management Technology revenues   273     273
    Regulatory Technology revenues (1)   352   34   386
    Capital Markets Technology revenues   996     996
    Total Financial Technology revenues   1,621   34   1,655
    SOLUTIONS REVENUES   3,593   34   3,627
           
    MARKET SERVICES REVENUES, NET   1,020     1,020
    OTHER REVENUES   36     36
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 4,649 $ 34 $ 4,683
           
           
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
           
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Operating Income and Operating Margin
    (in millions)
    (unaudited)
                   
           Three Months Ended   Year Ended
          December 31,   December 31,   December 31,   December 31,
           2024     2023     2024     2023 
                       
    U.S. GAAP operating income   $ 517     $ 352     $ 1,798     $ 1,578  
    Non-GAAP adjustments:                
      Adenza purchase accounting adjustment (1)                 34        
      Amortization expense of acquired intangible assets (2)     122       95       488       206  
      Merger and strategic initiatives expense (3)     12       97       35       148  
      Restructuring charges (4)     13       31       116       80  
      Lease asset impairments (5)           1             25  
      Extinguishment of debt (6)     4             4        
      Legal and regulatory matters (7)     2       23       20       12  
      Pension settlement charge (8)           9       23       9  
      Other loss     1       5       3       7  
      Total non-GAAP adjustments     154       261       723       487  
    Non-GAAP operating income   $ 671     $ 613     $ 2,521     $ 2,065  
                     
    U.S. GAAP revenues less transaction-based expenses   $ 1,227     $ 1,117     $ 4,649     $ 3,895  
                       
    Non-GAAP revenues less transaction-based expenses   $ 1,227     $ 1,117     $ 4,683     $ 3,895  
                       
    U.S. GAAP operating margin (9)     42 %     32 %     39 %     41 %
                       
    Non-GAAP operating margin (10)     55 %     55 %     54 %     53 %
                       
    Note: The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions.
                       
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
           
    (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
                       
    (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months and years ended December 31, 2024 and December 31, 2023, these costs primarily relate to the Adenza acquisition. For the year ended December 31, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the year ended December 31, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (6) For the three months and year ended December 31, 2024, we recorded costs related to the early extinguishment of debt. This charge is recorded in general, administrative expense in our Condensed Consolidated Statements of Income.
                       
    (7) For the year ended December 31, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the three months and year ended December 31, 2023, these charges primarily included accruals related to certain legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. For the year ended December 31, 2023, these accruals were offset with insurance recoveries related to legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income.
                       
    (8) For the years ended December 31, 2024 and 2023 and for the three months ended December 31, 2023, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    (9) U.S. GAAP operating margin equals U.S. GAAP operating income divided by revenues less transaction-based expenses.
                       
    (10) Non-GAAP operating margin equals non-GAAP operating income divided by non-GAAP revenues less transaction-based expenses.
                       
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Operating Expenses
    (in millions)
    (unaudited)
                   
           Three Months Ended   Year Ended
          December 31,   December 31,   December 31,   December 31,
           2024     2023     2024     2023 
                       
    U.S. GAAP operating expenses   $ 710     $ 765     $ 2,851     $ 2,317  
    Non-GAAP adjustments:                
      Amortization expense of acquired intangible assets (1)     (122 )     (95 )     (488 )     (206 )
      Merger and strategic initiatives expense (2)     (12 )     (97 )     (35 )     (148 )
      Restructuring charges (3)     (13 )     (31 )     (116 )     (80 )
      Lease asset impairments (4)           (1 )           (25 )
      Extinguishment of debt (5)     (4 )           (4 )      
      Legal and regulatory matters (6)     (2 )     (23 )     (20 )     (12 )
      Pension settlement charge (7)           (9 )     (23 )     (9 )
      Other (loss)     (1 )     (5 )     (3 )     (7 )
      Total non-GAAP adjustments     (154 )     (261 )     (689 )     (487 )
    Non-GAAP operating expenses   $ 556     $ 504     $ 2,162     $ 1,830  
                       
                       
    (1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
           
    (2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months and years ended December 31, 2024 and December 31, 2023, these costs primarily relate to the Adenza acquisition. For the year ended December 31, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (4) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the year ended December 31, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (5) For the three months and year ended December 31, 2024, we recorded costs related to the early extinguishment of debt. This charge is recorded in general, administrative expense in our Condensed Consolidated Statements of Income.
                       
    (6) For the year ended December 31, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the three months and year ended December 31, 2023, these charges primarily included accruals related to certain legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income. For the year ended December 31, 2023, these accruals were offset with insurance recoveries related to legal matters recorded in general, administrative and other expense and professional and contract services expense in our Condensed Consolidated Statements of Income.
                       
    (7) For the years ended December 31, 2024 and 2023 and for the three months ended December 31, 2023, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    Nasdaq, Inc.
    Reconciliation of Adjusted Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
    Non-GAAP Operating Income, and Non-GAAP Operating Margin
    (in millions)
    (unaudited)
                                       
      Three Months Ended                    
      December 31,
    2024
      December 31,
    2023
      Total Variance   FX & Other (2)   Adjusted YoY
      Non-GAAP   Non-GAAP   Adenza   Pro Forma (1)   $   %   $   $   %
    CAPITAL ACCESS PLATFORMS                                  
    data                                  
    listings                                  
    Data and Listing Services revenues $ 192     $ 189     $     $ 189     $ 3     2 %   $     $ 3     2 %
    Index revenues   188       146             146       42     29 %           42     29 %
    Workflow and insights revenues   131       126             126       5     4 %           5     4 %
    Total Capital Access Platforms revenues   511       461             461       50     11 %           50     11 %
                                       
    FINANCIAL TECHNOLOGY                                  
    Financial Crime Management Technology revenues   73       60             60       13     22 %           13     22 %
    Regulatory Technology revenues   98       110       (16 )     94       4     5 %     (1 )     5     6 %
    Capital Markets Technology revenues   267       229       26       255       12     4 %           12     4 %
    Total Financial Technology revenues   438       399       10       409       29     7 %     (1 )     30     7 %
                                       
    Non-GAAP Solutions revenues (3)   949       860       10       870       79     9 %     (1 )     80     9 %
                                       
    Market Services, net revenues   268       247             247       21     8 %     (8 )     29     12 %
    Other revenues   10       10             10           (1 )%               (2 )%
    Non-GAAP Revenues less transaction-based expenses   1,227       1,117       10       1,127       100     9 %     (9 )     109     10 %
                                       
    Non-GAAP operating expenses   556       504       23       527       29     5 %     (3 )     32     6 %
    Non-GAAP operating income $ 671     $ 613     $ (13 )   $ 600     $ 71     12 %   $ (6 )   $ 77     13 %
    Non-GAAP operating margin   55 %     56 %         53 %                    
                                       
                                       
      Year Ended                    
      December 31,
    2024
      December 31,
    2023
      Total Variance   FX & Other (2)   Adjusted YoY
      Non-GAAP   Non-GAAP   Adenza   Pro Forma (1)   $   %   $   $   %
    CAPITAL ACCESS PLATFORMS                                  
    Data and Listing Services revenues $ 754     $ 749     $     $ 749     $ 5     1 %   $     $ 5     1 %
    Index revenues   706       528             528       178     34 %     16       162     31 %
    Workflow and insights revenues   512       493             493       19     4 %     1       18     4 %
    Total Capital Access Platforms revenues   1,972       1,770             1,770       202     11 %     17       185     10 %
                                       
    FINANCIAL TECHNOLOGY                                  
    Financial Crime Management Technology revenues   273       223             223       50     22 %           50     22 %
    Regulatory Technology revenues   286       212       149       361       25     7 %     1       24     7 %
    Capital Markets Technology revenues   996       664       257       921       75     8 %     1       74     8 %
    Total Financial Technology revenues   1,655       1,099       406       1,505       150     10 %     2       148     10 %
                                       
    Non-GAAP Solutions revenues (3)   3,627       2,869       406       3,275       352     11 %     19       333     10 %
                                       
    Market Services, net revenues   1,020       987             987       33     3 %     (8 )     41     4 %
    Other revenues   36       39             39       (3 )   (9 )%     (2 )     (1 )   (5 )%
    Non-GAAP Revenues less transaction-based expenses   4,683       3,895       406       4,301       382     9 %     9       373     9 %
                                       
    Operating expenses   2,162       1,830       217       2,047       115     6 %     (4 )     119     6 %
    Operating income $ 2,521     $ 2,065     $ 189     $ 2,254     $ 267     12 %   $ 13     $ 254     11 %
    Operating margin   54 %     53 %         52 %                    
                                       
                                       
                                       
    (1) Includes the pro forma results for AxiomSL and Calypso and are presented assuming AxiomSL and Calypso were included in the entire prior year quarterly and full year results and revenue for AxiomSL on-premises contracts were recognized ratably for 2024 and 2023.
    (2) Reflects the impacts from changes in foreign currency exchange rates (except for AxiomSL and Calypso, which will be calculated on an organic basis beginning in 2025) and the exclusion of a non-recurring payment received in 4Q23 recorded within our Market Services business. In addition, the full year also excludes the impact of a one-time revenue benefit related to a legal settlement to recoup revenue recorded within Index in 1Q24.
    (3) Represents Capital Access Platforms and Financial Technology Segments.
                                       
    Note: The pro forma results above are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this press release. The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions.
                                       
    Nasdaq, Inc.
    Reconciliation of Organic Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
    Non-GAAP Operating Income, and Non-GAAP Diluted Earnings Per Share
    (in millions)
    (unaudited)
                                   
      Three Months Ended                        
      December 31,
    2024
      December 31,
    2023
      Total Variance   Other Impacts (1)   Organic Impact (2)
      Non-GAAP   Non-GAAP   $   %   $   %   $   %
    CAPITAL ACCESS PLATFORMS                              
    Data and Listing Services revenues $ 192   $ 189   $ 3     2 %   $     %   $ 3     2 %
    Index revenues   188     146     42     29 %         %     42     29 %
    Workflow and Insights revenues   131     126     5     4 %         %     5     4 %
    Total Capital Access Platforms revenues   511     461     50     11 %         %     50     11 %
                                   
    FINANCIAL TECHNOLOGY                              
    Financial Crime Management Technology revenues   73     60     13     22 %         %     13     22 %
    Regulatory Technology revenues   98     110     (12 )   (10 )%     (15 )   (13 )%     3     4 %
    Capital Markets Technology revenues   267     229     38     16 %     27     12 %     11     5 %
    Total Financial Technology revenues   438     399     39     10 %     12     3 %     27     7 %
                                   
    Non-GAAP Solutions revenues (3)   949     860     89     10 %     12     1 %     77     9 %
                                   
    Market Services, net revenues   268     247     21     8 %         %     21     8 %
                                   
    Other revenues   10     10         (1 )%         %         (2 )%
                                   
    Non-GAAP Revenues less transaction-based expenses $ 1,227   $ 1,117   $ 110     10 %   $ 12     1 %   $ 98     9 %
                                   
    Non-GAAP Operating Expenses $ 556   $ 504   $ 52     10 %   $ 21     4 %   $ 31     6 %
                                   
    Non-GAAP Operating Income $ 671   $ 613   $ 58     10 %   $ (9 )   (1 )%   $ 67     12 %
                                   
    Non-GAAP diluted earnings per share $ 0.76   $ 0.72   $ 0.04     5 %   $ (0.03 )   (5 )%   $ 0.07     10 %
                                   
      Year Ended                        
      December 31,
    2024
      December 31,
    2023
      Total Variance   Other Impacts (1)   Organic Impact (2)
      Non-GAAP   Non-GAAP   $   %   $   %   $   %
    CAPITAL ACCESS PLATFORMS                              
    Data and Listing Services revenues $ 754   $ 749   $ 5     1 %   $     %   $ 5     1 %
    Index revenues   706     528     178     34 %         %     178     34 %
    Workflow and Insights revenues   512     493     19     4 %     1     %     18     4 %
    Total Capital Access Platforms revenues   1,972     1,770     202     11 %     1     %     201     11 %
                                   
    FINANCIAL TECHNOLOGY                              
    Financial Crime Management Technology revenues   273     223     50     22 %         %     50     22 %
    Regulatory Technology revenues   386     212     174     83 %     165     78 %     9     5 %
    Capital Markets Technology revenues   996     664     332     50 %     316     48 %     16     2 %
    Total Financial Technology revenues   1,655     1,099     556     51 %     481     44 %     75     7 %
                                   
    Non-GAAP Solutions revenues (3)   3,627     2,869     758     26 %     482     17 %     276     10 %
                                   
    Market Services, net revenues   1,020     987     33     3 %         %     33     3 %
                                   
    Other revenues   36     39     (3 )   (9 )%     (2 )   (4 )%     (1 )   (5 )%
                                   
    Non-GAAP Revenues less transaction-based expenses $ 4,683   $ 3,895   $ 788     20 %   $ 480     12 %   $ 308     8 %
                                   
    Non-GAAP Operating Expenses $ 2,162   $ 1,830   $ 332     18 %   $ 216     12 %   $ 116     6 %
                                   
    Non-GAAP Operating Income $ 2,521   $ 2,065   $ 456     22 %   $ 264     13 %   $ 192     9 %
                                   
    Non-GAAP diluted earnings per share $ 2.82   $ 2.82   $     %   $ (0.31 )   (11 )%   $ 0.31     11 %
                                   
    Note: The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions. The sum of the percentage changes may not tie to the percentage change in total variance due to rounding.
                                   
    (1) Primarily includes the impacts of the Adenza acquisition and changes in FX rates. The revenue adjustments related to the Adenza acquisition reflect an additional $514 million of total revenue recorded in FY 2024 and $48 million for 4Q24, partially offset by an adjustment to reported 2023 revenues related to AxiomSL ratable revenue recognition of $34 million.
    (2) Organic impact reflects adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture.
    (3) Represents Capital Access Platforms and Financial Technology Segments.
                                   
    Nasdaq, Inc.
    Key Drivers Detail
    (unaudited)
                     
        Three Months Ended   Year Ended
        December 31,   December 31,   December 31,   December 31,
         2024     2023     2024     2023 
    Capital Access Platforms              
      Annualized recurring revenues (in millions) (1) $ 1,268     $ 1,235     $ 1,268     $ 1,235  
      Initial public offerings              
      The Nasdaq Stock Market (2)   66       28       180       130  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic   7       4       14       7  
      Total new listings              
      The Nasdaq Stock Market (2)   162       100       463       330  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (3)   13       7       31       23  
      Number of listed companies              
      The Nasdaq Stock Market (4)   4,075       4,044       4,075       4,044  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (5)   1,174       1,218       1,174       1,218  
      Index              
      Number of licensed exchange traded products (6)   401       364       401       364  
      Period end ETP assets under management (AUM) tracking Nasdaq indexes (in billions) $ 647     $ 473     $ 647     $ 473  
      Total average ETP AUM tracking Nasdaq indexes (in billions) $ 632     $ 436     $ 558     $ 396  
      TTM (7) net inflows ETP AUM tracking Nasdaq indexes (in billions) $ 80     $ 31     $ 80     $ 31  
      TTM (7) net appreciation ETP AUM tracking Nasdaq indexes (in billions) $ 110     $ 128     $ 110     $ 128  
                     
    Financial Technology              
      Annualized recurring revenues (in millions) (1)              
      Financial Crime Management Technology $ 278     $ 226     $ 278     $ 226  
      Regulatory Technology   354       325       354       325  
      Capital Markets Technology   868       799       868       799  
      Total Financial Technology $ 1,500     $ 1,350     $ 1,500     $ 1,350  
                     
    Market Services              
      Equity Derivative Trading and Clearing              
      U.S. equity options              
      Total industry average daily volume (in millions)   47.5       40.2       44.4       40.4  
      Nasdaq PHLX matched market share   10.5 %     11.5 %     10.0 %     11.3 %
      The Nasdaq Options Market matched market share   5.2 %     5.5 %     5.5 %     6.1 %
      Nasdaq BX Options matched market share   1.8 %     2.4 %     2.1 %     3.3 %
      Nasdaq ISE Options matched market share   7.2 %     6.1 %     6.9 %     5.9 %
      Nasdaq GEMX Options matched market share   2.6 %     2.7 %     2.6 %     2.4 %
      Nasdaq MRX Options matched market share   3.0 %     2.6 %     2.7 %     2.0 %
      Total matched market share executed on Nasdaq’s exchanges   30.3 %     30.8 %     29.8 %     31.0 %
      Nasdaq Nordic and Nasdaq Baltic options and futures              
      Total average daily volume of options and futures contracts (8)   228,955       327,680       233,610       301,320  
                     
      Cash Equity Trading              
      Total U.S.-listed securities              
      Total industry average daily share volume (in billions)   13.6       11.2       12.2       11.0  
      Matched share volume (in billions)   125.2       113.3       479.4       455.6  
      The Nasdaq Stock Market matched market share   14.0 %     15.4 %     15.1 %     15.8 %
      Nasdaq BX matched market share   0.3 %     0.4 %     0.3 %     0.4 %
      Nasdaq PSX matched market share   0.1 %     0.3 %     0.2 %     0.3 %
      Total matched market share executed on Nasdaq’s exchanges   14.4 %     16.1 %     15.6 %     16.5 %
      Market share reported to the FINRA/Nasdaq Trade Reporting Facility   47.6 %     40.9 %     44.3 %     36.7 %
      Total market share (9)   62.0 %     57.0 %     59.9 %     53.2 %
      Nasdaq Nordic and Nasdaq Baltic securities              
      Average daily number of equity trades executed on Nasdaq’s exchanges   669,234       637,403       651,455       666,411  
      Total average daily value of shares traded (in billions) $ 4.5     $ 4.5     $ 4.5     $ 4.5  
      Total market share executed on Nasdaq’s exchanges   70.9 %     72.0 %     71.9 %     71.0 %
                     
      Fixed Income and Commodities Trading and Clearing              
      Fixed Income              
      Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts   91,471       93,128       93,747       95,625  
                     
      (1) Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature, or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
      (2) New listings include IPOs, issuers that switched from other listing venues, closed-end funds and separately listed ETPs. For the three months ended December 31, 2024 and 2023, IPOs included 22 and 8 SPACs, respectively. For the years ended December 31, 2024 and 2023, IPOs included 50 and 27 SPACs, respectively.
      (3) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
      (4) Number of total listings on The Nasdaq Stock Market for the twelve months ended December 31, 2024 and December 31, 2023 included 768 and 600 ETPs, respectively.
      (5) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
      (6) The number of listed ETPs as of December 31, 2023 has been updated to reflect a revised methodology whereby an ETP listed on multiple exchanges is counted as one product, rather than formerly being counted per exchange. This change has no impact on reported AUM.
      (7) Trailing 12-months.
      (8) Includes Finnish option contracts traded on Eurex for which Nasdaq and Eurex had a revenue sharing arrangement, which ended in the fourth quarter of 2023.
      (9) Includes transactions executed on The Nasdaq Stock Market’s, Nasdaq BX’s and Nasdaq PSX’s systems plus trades reported through the Financial Industry Regulatory Authority/Nasdaq Trade Reporting Facility.

    The MIL Network

  • MIL-OSI: Bitget Lists Foresight Ventures-backed Analog (ANLOG) on Launchpool

    Source: GlobeNewswire (MIL-OSI)

    VICTORIA, Seychelles, Jan. 29, 2025 (GLOBE NEWSWIRE) — Bitget, the leading cryptocurrency exchange and Web3 company, has announced the listing of ANLOG token. Eligible users will have the opportunity to lock Bitcoin (BTC) and Ethereum (ETH) to participate in a reward pool of 23,333,431 ANLOG tokens. The locking period will run from February 6, 2025, at 11:00 UTC to February 11, 2025, at 11:00 UTC.

    Analog operates as a suite of omni-chain interoperability protocols designed to simplify access to Web3 data and facilitate seamless cross-chain communication. With a total token supply of 9,057,971,000 ANLOG, the project aims to address critical challenges in blockchain interoperability, enabling more efficient data sharing and communication across decentralized networks.

    The Launchpool campaign is structured into two locking pools: one for BTC and another for ETH. Each pool offers 11,666,715 and 11,666,716 ANLOG tokens, respectively. Rewards will be distributed hourly based on the proportion of assets locked by each participant relative to the total locked in the pool. Bitget will take hourly snapshots of locked volumes, with airdrops calculated and distributed accordingly. Participants can unlock their tokens at any time, and all locked assets will be automatically returned to their spot accounts once the locking period concludes.

    This initiative marks a pivotal step for Analog as it prepares to expand its ecosystem and enhance cross-chain functionality. The integration with Bitget Launchpool provides users with an early opportunity to engage with the project while contributing to its growing community.

    Analog has secured $5 million in a recent funding round, bringing its total funding to $21 million and valuing the company at $300 million. This investment precedes the launch of its native token, ANLOG, scheduled for February 6, 2025. The round attracted backing from top VCs such as Foresight Ventures, Gate Ventures, BackerDAO, and Black Label Ventures. Previously, Bitget listed ANLOG for pre-market trading allowing users to engage in ANLOG transactions ahead of its official spot market debut.

    For more information about ANALOG tokens on Launchpool, please visit here.

    About Bitget

    Established in 2018, Bitget is the world’s leading cryptocurrency exchange and Web3 company. Serving over 100 million users in 150+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions, while offering real-time access to Bitcoin price, Ethereum price, and other cryptocurrency prices. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, token swap, NFT Marketplace, DApp browser, and more.
    Bitget is at the forefront of driving crypto adoption through strategic partnerships, such as its role as the Official Crypto Partner of the World’s Top Football League, LALIGA, in EASTERN, SEA and LATAM market, as well as a global partner of Turkish National athletes Buse Tosun Çavuşoğlu (Wrestling world champion), Samet Gümüş (Boxing gold medalist) and İlkin Aydın (Volleyball national team), to inspire the global community to embrace the future of cryptocurrency.

    For more information, visit: Website | Twitter | Telegram | LinkedIn | Discord | Bitget Wallet
    For media inquiries, please contact: media@bitget.com

    Risk Warning: Digital asset prices are subject to fluctuation and may experience significant volatility. Investors are advised to only allocate funds they can afford to lose. The value of any investment may be impacted, and there is a possibility that financial objectives may not be met, nor the principal investment recovered. Independent financial advice should always be sought, and personal financial experience and standing carefully considered. Past performance is not a reliable indicator of future results. Bitget accepts no liability for any potential losses incurred. Nothing contained herein should be construed as financial advice. For further information, please refer to our Terms of Use.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5058f6ab-1940-4b1b-b389-12436d7d813d

    The MIL Network

  • MIL-OSI Security: Nigerian who defrauded U.S. pandemic aid programs of more than $1 million sentenced to 54 months in prison

    Source: United States Department of Justice (National Center for Disaster Fraud)

    Defendant defrauded Americans for a decade with trove of over 14,000 stolen identities

    Tacoma – The second of two Nigerian men residing in Canada who defrauded pandemic aid programs of millions was sentenced today in U.S. District Court in Tacoma to 54 months in prison for wire fraud and aggravated identity theft announced U.S. Attorney Tessa M. Gorman. Fatiu Ismaila Lawal, 46, was extradited from Canada last July, and pleaded guilty in September 2024. At today’s sentencing hearing U.S. District Judge Tiffany M. Cartwright said, the crime required substantial planning. “This took advantage of programs designed to help people who were really struggling in an international emergency,” Judge Cartwright said.

    “This defendant made it his full-time job to defraud the U.S. for years before the pandemic, but he kicked it into high gear once critical aid to Americans workers was flowing,” said U.S. Attorney Gorman. “His fraud included using stolen identities of Washington residents to file dozens of unemployment claims in the first few weeks of the pandemic, contributing to the flood of fraudulent claims that caused the state to pause all unemployment payments. In this way his fraud harmed all Washingtonians who desperately needed assistance at the onset of the pandemic.”

    According to records filed in the case, Lawal, and codefendant Sakiru Olanrewaju Ambali, 46, used the stolen identities of thousands of workers to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.7 million, primarily from pandemic unemployment benefits. Lawal admits that he personally submitted claims for $1,345,472.

    Lawal personally submitted at least 790 unemployment claims using the stolen identities of 790 workers. He submitted claims for pandemic unemployment benefits to New York, Maryland, Michigan, Nevada, California, Washington and some 19 other states. Lawal also established four internet domain names that were subsequently used for fraud – creating some 800 different email addresses that were used in this scheme.

    Additionally, between 2018 and November 2022, Lawal used stolen personal information to submit 3,000 income tax returns for $7.5 million in refunds. The IRS detected the fraud and paid just $30,000.

    “While Mr. Lawal may not have secured the $7.5 million he sought from fraudulent tax refunds, each of the 3,000 returns he filed represents a life he disrupted,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office.

    Lawal and co-defendant Ambali also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration (SBA). The pair submitted some 38 applications, but SBA caught most of the fraud and paid only $2,500.

    Lawal and Ambali had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.

    Evidence gathered in the case shows that Lawal personally received a substantial portion of the criminal proceeds. Lawal was ordered to pay restitution of $1,345,472.

    Co-defendant Ambali was sentenced to 42 months in prison in March 2024.

    In asking for a 65-month prison sentence, the government argued, “During major disasters and nationwide emergencies, it is particularly importantfor the government to be able to disburse aid quickly to real victims to mitigate the impact of the crisis. The actual monetary loss to the government comes secondary to the fact that a real person or business behind each stolen identity had difficulty accessing assistance because a fraudulent claim was already paid in their identity. These difficulties were further compounded by the onslaught of fraudulent claims that clogged the infrastructure in place to distribute the aid. The estimated loss from these fraudulent pandemic unemployment claims is over $100 billion.”

    The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Internal Revenue Service Criminal Investigation (IRS-CI), Washington State Employment Security Division (ESD), and the Small Business Administration (SBA).

    The case was prosecuted by Assistant United States Attorney Cindy Chang of the Western District of Washington. DOJ’s Office of International Affairs assisted with extradition on this matter.

    The COVID-19 Fraud Enforcement Task Force was established to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

    Anyone with information about allegations of attempted fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

    MIL Security OSI

  • MIL-OSI USA: On the Senate Floor, Cortez Masto Calls Out Trump’s Anti-Law Enforcement Pardons

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto

    “Earlier today, my Democratic colleagues and I co-sponsored a resolution to condemn these pardons. One would think that my Republican colleagues who claim to be pro-law enforcement would sign onto this resolution and stand against any action that harms our police.”
    Washington, D.C. – U.S. Senator Cortez Masto (D-Nev.) blasted President Trump on the Senate floor for pardoning a drug trafficking kingpin and the violent criminals who assaulted police officers on January 6, 2021. A former prosecutor and Nevada attorney general, Cortez Masto urged her supposedly pro-law enforcement Republican colleagues to join her resolution condemning these pardons.
    Below are her remarks as prepared for delivery:
    Mr. President, I’m so appreciative of my colleagues coming down here to talk about not only the January 6 pardons that President Trump has done but to stand with the men and women in law enforcement.
    When I’m home, quite often I will hear at times that “well, Democrats don’t support law enforcement, they don’t support the men and women who keep our communities safe.” And that’s just not true, as you can see today.
    But here’s what I know, and this is why this was devastating to so many men and women who not only are Capitol Police officers right here, who defended our Capitol on January 6, who stand to protect us, but for all of the men and women in law enforcement across this country who are paying attention and watching what this president does.
    Will he have their back when the time comes? Will he be there to truly support them in their time of need when they’re doing their job like he says he will?
    Now, we’ve spent the last decade hearing Donald Trump talk about “law and order” and cracking down on crime. Last fall, on a national podcast, he called for giving our law enforcement their “dignity back”. Just last week at a White House press conference, he claimed to be a friend of the police.
    Well, Donald Trump has been in office for just one week, and already his actions are making it clear that he doesn’t mean what he says. In fact, from his actions we’ve seen so far, he’s actively working against our men and women in law enforcement – not only here who work at this Capitol, but across this country.
    Let me put this in starker terms that I think my Republican colleagues will understand. Mr. President, Nevada families across my state have been torn apart by dangerous drugs like methamphetamines and opioids. And that’s true for so many families across the country.
    It doesn’t matter if they’re Democrats, Republicans, Libertarians, or independents – illicit drug trafficking is impacting everyone in this country.
    But last week, Donald Trump pardoned the founder of Silk Road, an underground internet site that oversaw the trafficking of $200 million in illegal drugs and other illicit trade.
    The founder was convicted by a jury of his peers and sentenced to life in prison for participating in a criminal organization and distributing narcotics on the internet.
    Americans died after purchasing illicit drugs on his website. A website that was specifically designed to skirt the law and support criminal activity.
    But now, this founder is walking free because of Donald Trump.
    Donald Trump giving a full, unconditional pardon to this drug dealer and criminal profiteer is a slap in the face to the victims of this crisis, and to law enforcement who work to protect our communities and to take drug traffickers like him off our streets.
    What Donald Trump has done is not law and order, it’s chaos.
    And it’s not just with this one pardon.
    Donald Trump has also pardoned more than 130 individuals who were convicted of assaulting police officers right here at the Capitol on January 6, 2021.
    I was here that day. I remember running into a Capitol Police officer who was pepper-sprayed by a rioter in Donald Trump’s mob. And at the same time that he was washing out his eyes, he was saying to us senators, “Don’t worry. I’ve got your back, and I am standing guard.” And he ran back out to the front of the Capitol. He was doing his job.
    That day, those rioters and insurrectionists brought weapons and zip ties to the Capitol, they used WD-40 and bear spray on our officers, and they assaulted Capitol Police with American flags.
    This isn’t some political conspiracy – these insurrectionists posted videos online of themselves shoving, punching, and attacking our law enforcement.
    And now, instead of serving their time and facing the consequences for the dangerous actions they committed against our police officers, Donald Trump is telling them that not only were they wrongfully punished, but in fact, their behavior on that day is encouraged – as long as they’re doing his bidding.
    Criminals convicted of attacking law enforcement are giving TV interviews saying that President Trump’s pardons have vindicated their actions.
    This is an endorsement of political violence, and it’s an insult to the men and women who risk their lives every day to keep our families safe.
    I know many law enforcement officers personally. As a former prosecutor and attorney general of the state of Nevada, I’ve spent most of my life working with some great men and women in law enforcement.
    And by the way, I’m married to one. My husband worked in federal law enforcement his entire career. His priority was doing his job and keeping people safe, because that’s what our law enforcement is trained to do. To put their lives on the line every single time to keep our communities safe.
    And it’s not just about the officers – it’s about their families. When you are the spouse or the loved one of an officer who gets that call, sometimes in the middle of the night, and they leave to address some crime or issue and keep your community safe, you don’t know if they’re coming back.
    There are two calls that are the worst kind you can get as the spouse of a law enforcement officer. The first one is from your spouse saying “I’m in the hospital, but don’t worry, everything’s okay.” The second one is not from your spouse, but it’s from another law enforcement officer telling you that your husband or wife went out on a call and didn’t come back.
    The sacrifices of not only our officers but their loved ones need to be considered. And if we truly believe in law and order and we truly believe that we should support them because they put their lives on the line every single day, then we should have their backs. No matter your politics, we should always be there to support them.
    I will always stand up for law enforcement.
    I’ve passed legislation to support public safety under administrations of both parties. And I will always speak out when our leaders act against law enforcement, whether they’re a Democrat or a Republican.
    I disagreed with President Biden granting pardons to his family, I disagreed when he granted clemency for Leonard Peltier, who was convicted of murdering two FBI agents. And I disagree with President Biden in commuting the sentence of Adrian Peeler, who was convicted of drug trafficking and murder.
    I also spoke out when President Biden nominated Adeel Mangi to be a federal judge. I did not support him because of his affiliation with a group that wanted to let cop killers out of prison.
    That was me standing up for law enforcement.
    So believe me when I say, this is not partisan; this is about standing up for the men and women who put their lives on the line for us every day.
    This shouldn’t be hard. You commit a violent crime in our community, you should face the consequences.
    Don’t take my word for it – the Fraternal Order of Police, which is the largest organization of sworn law enforcement officers in the world, has condemned Trump’s pardoning of those who assaulted Capitol Police officers on January 6.
    But there are too many members of this body, who had the benefit of those Capitol Police officers on January 6 protecting their lives, who have been oddly silent.
    Earlier today, my Democratic colleagues and I co-sponsored a resolution to condemn these pardons. One would think that my Republican colleagues who claim to be pro-law enforcement would sign onto this resolution and stand against any action that harms our police.
    If we truly believe in law and order and we want to work together to keep our communities safe, we have to not only talk about it, we have to act.
    Because the American people deserve better. The American people deserve a president who isn’t going to release violent criminals back into our communities. The American people deserve safety – and our law enforcement, who maintain that safety, deserve to know we have their backs.

    MIL OSI USA News

  • MIL-OSI: First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    JEFFERSONVILLE, Ind., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Savings Financial Group, Inc. (NASDAQ: FSFG – news) (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $6.2 million, or $0.89 per diluted share, for the quarter ended December 31, 2024, compared to net income of $920,000, or $0.13 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the Company reported net income of $4.3 million (non-GAAP measure)(1) and net income per diluted share of $0.62 (non-GAAP measure)(1) for the quarter ended December 31, 2024 compared to $920,000, or $0.13 per diluted share for the quarter ended December 31, 2023. The core banking segment reported net income of $6.4 million, or $0.91 per diluted share, for the quarter ended December 31, 2024, compared to $4.0 million, or $0.59 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the core banking segment reported net income of $4.5 million, or $0.64 per diluted share for the quarter ended December 31, 2024 (non-GAAP measure)(1) compared to $4.0 million, or $0.59 per diluted share for the quarter ended December 31, 2023.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the first fiscal quarter, which included a bulk sale of first lien home equity lines of credit and continued improvement in our net interest margin. The bulk sale is part of a strategic initiative to transition the first lien home equity line of credit business to an originate for sale model during fiscal 2025 in order to enhance noninterest income, moderate the loan to deposit ratio, decrease reliance on noncore funding, and generate capital. The surplus capital generated from the bulk sale and potential future flow sales may be used to retire high-cost subordinated debt and repurchase Company common shares. We are optimistic regarding the remainder of fiscal 2025 as we continue to focus on asset quality, select loan growth opportunities, and capital and liquidity management. We’ll continue to evaluate options and strategies that we believe will maximize shareholder value.”

    (1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.

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

    Net interest income increased $1.3 million, or 9.6%, to $15.5 million for the three months ended December 31, 2024 as compared to the same period in 2023. The tax equivalent net interest margin for the three months ended December 31, 2024 was 2.75% as compared to 2.69% for the same period in 2023. The increase in net interest income was due to a $3.8 million increase in interest income, partially offset by a $2.4 million increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

    The Company recognized a reversal of provision for credit losses for loans and securities of $490,000 and $7,000, respectively, and a provision for unfunded lending commitments of $46,000 for the three months ended December 31, 2024, compared to a provision for credit losses for loans of $470,000 and reversal of provision for unfunded lending commitments of $58,000 for the same period in 2023. The reversal of provisions during the 2024 period was due primarily to the bulk sale of approximately $87.2 million of home equity lines of credit during the quarter ended December 31, 2024, which resulted in the reversals of $980,000 in allowance for credit losses for loans and $129,000 in allowance for unfunded lending commitments. The Company recognized net charge-offs totaling $119,000 for the three months ended December 31, 2024, of which $52,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $9,000 in 2023. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $374,000 from $16.9 million at September 30, 2024 to $16.6 million at December 31, 2024.

    Noninterest income increased $3.3 million for the three months ended December 31, 2024 as compared to the same period in 2023. The increase was due primarily to a $2.5 million net gain on sale of loans due to the aforementioned bulk loan sale and $403,000 in net gains on equity securities during the three months ended December 31, 2024 with no corresponding gains for 2023.

    Noninterest expense decreased $1.1 million for the three months ended December 31, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits, occupancy and equipment and professional fee expenses of $487,000, $405,000 and $385,000, respectively. These decreases were primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

    The Company recognized income tax expense of $848,000 for the three months ended December 30, 2024 as compared to income tax benefit of $476,000 for the same period in 2023. The increase is due primarily to higher taxable income in the 2024 period, due primarily to the aforementioned net gain on sale of loans. The effective tax rate for 2024 was 12.0%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2024 and 2023 periods.

    Comparison of Financial Condition at December 31, 2024 and September 30, 2024

    Total assets decreased $61.6 million, from $2.45 billion at September 30, 2024 to $2.39 billion at December 31, 2024. Net loans held for investment decreased $79.3 million during the three months ended December 31, 2024 due primarily to the $87.2 million bulk sale of residential real estate home equity line of credit loans.

    Total liabilities decreased $60.5 million due primarily to decreases in total deposits of $48.1 million, which included a decrease in brokered deposits of $72.1 million and a decrease in FHLB borrowings of $6.6 million. The decrease in brokered deposits and FHLB borrowings was due primary to repayments as a result of the aforementioned bulk loan sale. As of December 31, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.1% of total deposits and 13.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

    Total stockholders’ equity decreased $1.1 million, from $177.1 million at September 30, 2024 to $176.0 million at December 31, 2024, due primarily to a $6.6 million increase in accumulated other comprehensive loss, partially offset by an increase in retained net income of $5.2 million. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the three months ended December 31, 2024, which resulted in a decrease in the fair value of securities available for sale. At December 31, 2024 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

    First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

    This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

    Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.

    Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

    Contact:
    Tony A. Schoen, CPA
    Chief Financial Officer
    812-283-0724

    FIRST SAVINGS FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS
    (Unaudited)
           
           
      Three Months Ended
    OPERATING DATA: December 31,
    (In thousands, except share and per share data)   2024       2023  
           
    Total interest income $ 32,449     $ 28,655  
    Total interest expense   16,987       14,542  
           
    Net interest income   15,462       14,113  
           
    Provision (credit) for credit losses – loans   (490 )     470  
    Provision (credit) for unfunded lending commitments   46       (58 )
    Credit for credit losses – securities   (7 )      
           
    Total provision (credit) for credit losses   (451 )     412  
           
    Net interest income after provision (credit) for credit losses   15,913       13,701  
           
    Total noninterest income   6,103       2,782  
    Total noninterest expense   14,943       16,039  
           
    Income before income taxes   7,073       444  
    Income tax expense (benefit)   848       (476 )
           
    Net income $ 6,225     $ 920  
           
    Net income per share, basic $ 0.91     $ 0.13  
    Weighted average shares outstanding, basic   6,851,153       6,823,948  
           
    Net income per share, diluted $ 0.89     $ 0.13  
    Weighted average shares outstanding, diluted   6,969,223       6,839,704  
           
           
    Performance ratios (annualized)  
    Return on average assets   1.02 %     0.16 %
    Return on average equity   14.07 %     2.42 %
    Return on average common stockholders’ equity   14.07 %     2.42 %
    Net interest margin (tax equivalent basis)   2.75 %     2.69 %
    Efficiency ratio   69.29 %     94.93 %
           
              QTD
    FINANCIAL CONDITION DATA: December 31,
      September 30,
      Increase
    (In thousands, except per share data)   2024       2024     (Decrease)
               
    Total assets $ 2,388,735     $ 2,450,368     $ (61,633 )
    Cash and cash equivalents   76,224       52,142       24,082  
    Investment securities   242,634       249,719       (7,085 )
    Loans held for sale   24,441       25,716       (1,275 )
    Gross loans   1,905,199       1,985,146       (79,947 )
    Allowance for credit losses   20,685       21,294       (609 )
    Interest earning assets   2,234,258       2,277,512       (43,254 )
    Goodwill   9,848       9,848        
    Core deposit intangibles   357       398       (41 )
    Loan servicing rights   2,661       2,754       (93 )
    Noninterest-bearing deposits   183,239       191,528       (8,289 )
    Interest-bearing deposits (retail)   1,212,527       1,180,196       32,331  
    Interest-bearing deposits (brokered)   437,008       509,157       (72,149 )
    Federal Home Loan Bank borrowings   295,000       301,640       (6,640 )
    Subordinated debt and other borrowings   48,642       48,603       39  
    Total liabilities   2,212,708       2,273,253       (60,545 )
    Accumulated other comprehensive loss   (17,789 )     (11,195 )     (6,594 )
    Total stockholders’ equity   176,027       177,115       (1,088 )
               
    Book value per share $ 25.48     $ 25.72       (0.24 )
    Tangible book value per share (non-GAAP) (1)   24.00       24.23       (0.23 )
               
    Non-performing assets:        
    Nonaccrual loans – SBA guaranteed $ 4,444     $ 5,036     $ (592 )
    Nonaccrual loans   12,124       11,906       218  
    Total nonaccrual loans $ 16,568     $ 16,942     $ (374 )
    Accruing loans past due 90 days                
    Total non-performing loans   16,568       16,942       (374 )
    Foreclosed real estate   444       444        
    Total non-performing assets $ 17,012     $ 17,386     $ (374 )
               
    Asset quality ratios:        
    Allowance for credit losses as a percent of total gross loans   1.09 %     1.07 %     0.01 %
    Allowance for credit losses as a percent of nonperforming loans   124.85 %     125.69 %     (0.84 %)
    Nonperforming loans as a percent of total gross loans   0.87 %     0.85 %     0.02 %
    Nonperforming assets as a percent of total assets   0.71 %     0.71 %     0.00 %
               
    (1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
    The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
             
      Three Months Ended
    Net Income December 31,
    (In thousands)   2024       2023  
             
    Net income attributable to the Company (non-GAAP) $ 4,308     $ 920  
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect   1,869        
    Plus: Reversal of provision for credit losses, loans, net of tax effect   735        
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect   97        
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect   302        
    Less: Adjustments to sick pay contingent liability, net of tax effect   (296 )      
    Less: Compensation expense associated with loan sale, net of tax effect   (790 )      
    Net income attributable to the Company (GAAP) $ 6,225     $ 920  
             
    Net Income per Share, Diluted    
             
    Net income per share attributable to the Company, diluted (non-GAAP) $ 0.62     $ 0.13  
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect   0.26        
    Plus: Reversal of provision for credit losses, loans, net of tax effect   0.11        
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect   0.01        
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect   0.04        
    Less: Adjustments to sick pay contingent liability, net of tax effect   (0.04 )      
    Less: Compensation expense associated with loan sale, net of tax effect   (0.11 )      
    Net income per share, diluted (GAAP) $ 0.89     $ 0.13  
             
    Core Bank Segment Net Income    
    (In thousands)      
             
    Net income attributable to the Core Bank (non-GAAP) $ 4,452     $ 4,048  
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect   1,869        
    Plus: Reversal of provision for credit losses, loans, net of tax effect   735        
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect   97        
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect   302        
    Less: Adjustments to sick pay contingent liability, net of tax effect   (296 )      
    Less: Compensation expense associated with loan sale, net of tax effect   (790 )      
    Net income attributable to the Core Bank (GAAP) $ 6,369     $ 4,048  
             
    Core Bank Segment Net Income per Share, Diluted
             
    Core Bank net income per share, diluted (non-GAAP) $ 0.64     $ 0.59  
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect   0.26        
    Plus: Reversal of provision for credit losses, loans, net of tax effect   0.11        
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect   0.01        
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect   0.04        
    Less: Adjustments to sick pay contingent liability, net of tax effect   (0.04 )      
    Less: Compensation expense associated with loan sale, net of tax effect   (0.11 )      
    Core Bank net income per share, diluted (GAAP) $ 0.91     $ 0.59  
             
               
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED): Three Months Ended    
    Efficiency Ratio   2024      
    (In thousands)   2024       2023      
               
    Net interest income (GAAP) $ 15,462     $ 14,113      
               
    Noninterest income (GAAP)   6,103       2,782      
               
    Noninterest expense (GAAP)   14,943       16,039      
               
    Efficiency ratio (GAAP)   69.29 %     94.93 %    
               
    Noninterest income (GAAP) $ 6,103     $ 2,782      
    Less: Gain on sale of loans, home equity lines of credit   (2,492 )          
    Less: Gain on sale of equity securities (Visa Class B-2 shares)   (403 )          
    Noninterest income (Non-GAAP)   3,208       2,782      
               
    Noninterest expense (GAAP) $ 14,943     $ 16,039      
    Less: Adjustments to sick pay contingent liability   (395 )          
    Less: Compensation expense associated with loan sale   (1,053 )          
    Noninterest expense (Non-GAAP) $ 13,495     $ 16,039      
               
    Efficiency ratio (excluding nonrecurring items) (non-GAAP)   72.28 %     94.93 %    
               
    Tangible Book Value Per Share December 31,
      September 30,
      Increase
    (In thousands, except share and per share data)   2024       2024     (Decrease)
               
    Stockholders’ equity (GAAP) $ 176,027     $ 177,115     $ (1,088 )
    Less: goodwill and core deposit intangibles   (10,205 )     (10,246 )     41  
    Tangible stockholders’ equity (non-GAAP) $ 165,822     $ 166,869     $ (1,047 )
               
    Outstanding common shares   6,909,173       6,887,106     $ 22,067  
               
    Tangible book value per share (non-GAAP) $ 24.00     $ 24.23     $ (0.23 )
               
    Book value per share (GAAP) $ 25.48     $ 25.72     $ (0.24 )
               
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): As of
    Summarized Consolidated Balance Sheets December 31,
      September 30,
      June 30,
      March 31,   December 31,
    (In thousands, except per share data)   2024       2024       2024       2024       2023  
                       
    Total cash and cash equivalents $ 76,224     $ 52,142     $ 42,423     $ 62,969     $ 33,366  
    Total investment securities   242,634       249,719       238,785       240,142       246,801  
    Total loans held for sale   24,441       25,716       125,859       19,108       22,866  
    Total loans, net of allowance for credit losses   1,884,514       1,963,852       1,826,980       1,882,458       1,841,953  
    Loan servicing rights   2,661       2,754       2,860       3,028       3,711  
    Total assets   2,388,735       2,450,368       2,393,491       2,364,983       2,308,092  
                       
    Retail deposits $ 1,395,766     $ 1,371,724     $ 1,312,997     $ 1,239,271     $ 1,180,951  
    Brokered deposits   437,008       509,157       399,151       548,175       502,895  
    Total deposits   1,832,774       1,880,881       1,712,148       1,787,446       1,683,846  
    Federal Home Loan Bank borrowings   295,000       301,640       425,000       315,000       356,699  
                       
    Common stock and additional paid-in capital $ 28,382     $ 27,725     $ 27,592     $ 27,475     $ 27,397  
    Retained earnings – substantially restricted   178,526       173,337       170,688       167,648       163,753  
    Accumulated other comprehensive loss   (17,789 )     (11,195 )     (17,415 )     (17,144 )     (13,606 )
    Unearned stock compensation   (973 )     (901 )     (999 )     (1,096 )     (1,194 )
    Less treasury stock, at cost   (12,119 )     (11,851 )     (11,866 )     (11,827 )     (11,827 )
    Total stockholders’ equity   176,027       177,115       168,000       165,056       164,523  
                       
    Outstanding common shares   6,909,173       6,887,106       6,883,656       6,883,160       6,883,160  
                       
                       
      Three Months Ended
    Summarized Consolidated Statements of Income December 31,   September 30,
      June 30,   March 31,   December 31,
    (In thousands, except per share data)   2024       2024       2024       2024       2023  
                       
    Total interest income $ 32,449     $ 32,223     $ 31,094     $ 30,016     $ 28,655  
    Total interest expense   16,987       17,146       16,560       15,678       14,542  
    Net interest income   15,462       15,077       14,534       14,338       14,113  
    Provision (credit) for credit losses – loans   (490 )     1,808       501       713       470  
    Provision (credit) for unfunded lending commitments   46       (262 )     158       (259 )     (58 )
    Provision (credit) for credit losses – securities   (7 )     (86 )     84       23        
    Total provision (credit) for credit losses   (451 )     1,460       743       477       412  
                       
    Net interest income after provision for credit losses   15,913       13,617       13,791       13,861       13,701  
                       
    Total noninterest income   6,103       2,842       3,196       3,710       2,782  
    Total noninterest expense   14,943       12,642       12,431       11,778       16,039  
    Income before income taxes   7,073       3,817       4,556       5,793       444  
    Income tax expense (benefit)   848       145       483       866       (476 )
    Net income   6,225       3,672       4,073       4,927       920  
                       
                       
    Net income per share, basic $ 0.91     $ 0.54     $ 0.60     $ 0.72     $ 0.13  
    Weighted average shares outstanding, basic   6,851,153       6,832,626       6,832,452       6,832,130       6,823,948  
                       
    Net income per share, diluted $ 0.89     $ 0.53     $ 0.60     $ 0.72     $ 0.13  
    Weighted average shares outstanding, diluted   6,969,223       6,894,532       6,842,336       6,859,611       6,839,704  
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Noninterest Income Detail December 31,   September 30,
      June 30,   March 31,   December 31,
    (In thousands)   2024       2024       2024       2024       2023  
                       
    Service charges on deposit accounts $ 567     $ 552     $ 538     $ 387     $ 473  
    ATM and interchange fees   665       642       593       585       449  
    Net unrealized gain on equity securities   78       28       419       6       38  
    Net gain on equity securities   403                          
    Net gain on sales of loans, Small Business Administration   711       647       581       951       834  
    Net gain on sales of loans, home equity lines of credit   2,492                          
    Mortgage banking income   78       6       49       53       89  
    Increase in cash surrender value of life insurance   361       363       353       333       329  
    Gain on life insurance   108                          
    Commission income   210       294       220       220       222  
    Real estate lease income   121       122       154       115       115  
    Net gain (loss) on premises and equipment   45       (4 )           120        
    Other income   264       192       289       940       233  
    Total noninterest income $ 6,103     $ 2,842     $ 3,196     $ 3,710     $ 2,782  
                       
                       
      Three Months Ended
      December 31,   September 30,
      June 30,   March 31,   December 31,
    Consolidated Performance Ratios (Annualized)   2024       2024       2024       2024       2023  
                       
    Return on average assets   1.02 %     0.61 %     0.69 %     0.92 %     0.16 %
    Return on average equity   14.07 %     8.52 %     9.86 %     13.06 %     2.42 %
    Return on average common stockholders’ equity   14.07 %     8.52 %     9.86 %     13.06 %     2.42 %
    Net interest margin (tax equivalent basis)   2.75 %     2.72 %     2.67 %     2.66 %     2.69 %
    Efficiency ratio   69.29 %     70.55 %     70.11 %     65.26 %     94.93 %
                       
                       
      As of or for the Three Months Ended
      December 31,   September 30,
      June 30,   March 31,   December 31,
    Consolidated Asset Quality Ratios   2024       2024       2024       2024       2023  
                       
    Nonperforming loans as a percentage of total loans   0.87 %     0.85 %     0.91 %     0.82 %     0.83 %
    Nonperforming assets as a percentage of total assets   0.71 %     0.71 %     0.72 %     0.68 %     0.69 %
    Allowance for credit losses as a percentage of total loans   1.09 %     1.07 %     1.07 %     1.02 %     1.01 %
    Allowance for credit losses as a percentage of nonperforming loans   124.85 %     125.69 %     118.12 %     124.01 %     121.16 %
    Net charge-offs to average outstanding loans   0.01 %     0.02 %     0.01 %     0.01 %     0.00 %
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Segmented Statements of Income Information December 31,   September 30,
      June 30,   March 31,   December 31,
    (In thousands)   2024       2024       2024       2024       2023  
                       
    Core Banking Segment:              
    Net interest income $ 13,756     $ 14,083     $ 13,590     $ 13,469     $ 13,113  
    Provision (credit) for credit losses – loans   (745 )     1,339       320       909       (49 )
    Provision (credit) for unfunded lending commitments   (75 )     78       64       (259 )      
    Provision (credit) for credit losses – securities   (7 )     (86 )     84       23        
    Net interest income after provision for credit losses   14,583       12,752       13,122       12,796       13,162  
    Noninterest income   5,253       2,042       2,474       2,537       1,679  
    Noninterest expense   12,574       10,400       10,192       10,093       10,252  
    Income before income taxes   7,262       4,394       5,404       5,240       4,589  
    Income tax expense   893       301       689       729       541  
    Net income $ 6,369     $ 4,093     $ 4,715     $ 4,511     $ 4,048  
                       
    SBA Lending Segment (Q2):              
    Net interest income $ 1,706     $ 994     $ 944     $ 869     $ 1,003  
    Provision (credit) for credit losses – loans   255       469       181       (196 )     461  
    Provision (credit) for unfunded lending commitments   121       (340 )     94              
    Net interest income after provision for credit losses   1,330       865       669       1,065       542  
    Noninterest income   850       800       722       1,173       1,003  
    Noninterest expense   2,369       2,242       2,239       1,685       2,146  
    Income (loss) before income taxes   (189 )     (577 )     (848 )     553       (601 )
    Income tax expense (benefit)   (45 )     (156 )     (206 )     137       (131 )
    Net income (loss) $ (144 )   $ (421 )   $ (642 )   $ 416     $ (470 )
                       
    Mortgage Banking Segment: (2)              
    Net interest income (loss) $     $     $     $     $ (3 )
    Provision for credit losses – loans                            
    Provision for unfunded lending commitments                            
    Net interest income (loss) after provision for credit losses                           (3 )
    Noninterest income                           100  
    Noninterest expense                           3,641  
    Loss before income taxes                           (3,544 )
    Income tax benefit                           (886 )
    Net loss $     $     $     $     $ (2,658 )
                       
    (2) National mortgage banking operations were ceased in the quarter ended December 31, 2023 and subsequent immaterial mortgage lending activity is reported within the Core Banking segment.
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Segmented Statements of Income Information December 31,   September 30,
      June 30,   March 31,   December 31,
    (In thousands, except percentage data)   2024       2024       2024       2024       2023  
                       
    Net Income (Loss) Per Share by Segment            
    Net income per share, basic – Core Banking $ 0.93     $ 0.60     $ 0.69     $ 0.66     $ 0.59  
    Net income (loss) per share, basic – SBA Lending (Q2)   (0.02 )     (0.06 )     (0.09 )     0.06       (0.07 )
    Net loss per share, basic – Mortgage Banking   0.00       0.00       0.00       0.00       (0.40 )
    Total net income (loss) per share, basic $ 0.91     $ 0.54     $ 0.60     $ 0.72     $ 0.12  
                       
    Net Income (Loss) Per Diluted Share by Segment          
    Net income per share, diluted – Core Banking $ 0.91     $ 0.59     $ 0.69     $ 0.66     $ 0.59  
    Net income (loss) per share, diluted – SBA Lending (Q2)   (0.02 )     (0.06 )     (0.09 )     0.06       (0.07 )
    Net loss per share, diluted – Mortgage Banking   0.00       0.00       0.00       0.00       (0.40 )
    Total net income (loss) per share, diluted $ 0.89     $ 0.53     $ 0.60     $ 0.72     $ 0.12  
                       
    Return on Average Assets by Segment (annualized) (3)          
    Core Banking   1.09 %     0.71 %     0.83 %     0.80 %     0.73 %
    SBA Lending   (0.55 %)     (1.71 %)     (2.91 %)     1.81 %     (2.11 %)
                       
    Efficiency Ratio by Segment (annualized) (3)            
    Core Banking   66.15 %     64.50 %     63.45 %     63.06 %     69.31 %
    SBA Lending   92.68 %     124.97 %     134.39 %     82.52 %     106.98 %
                       
                       
      Three Months Ended
    Noninterest Expense Detail by Segment December 31,   September 30,
      June 30,   March 31,   December 31,
    (In thousands)   2024       2024       2024       2024       2023  
                       
    Core Banking Segment:              
    Compensation $ 7,245     $ 5,400     $ 5,587     $ 5,656     $ 5,691  
    Occupancy   1,577       1,554       1,573       1,615       1,481  
    Advertising   338       399       253       205       189  
    Other   3,414       3,047       2,779       2,617       2,891  
    Total Noninterest Expense $ 12,574     $ 10,400     $ 10,192     $ 10,093     $ 10,252  
                       
    SBA Lending Segment (Q2):              
    Compensation $ 1,931     $ 1,854     $ 1,893     $ 1,933     $ 1,826  
    Occupancy   59       55       51       58       91  
    Advertising   14       17       12       7       10  
    Other   365       316       283       (313 )     219  
    Total Noninterest Expense $ 2,369     $ 2,242     $ 2,239     $ 1,685     $ 2,146  
                       
    Mortgage Banking Segment: (2)              
    Compensation $     $     $     $     $ 2,146  
    Occupancy                           469  
    Advertising                           119  
    Other                           907  
    Total Noninterest Expense $     $     $     $     $ 3,641  
                       
    (3) Ratios for Mortgage Banking Segment are not considered meaningful due to cessation of national mortgage banking operations in the quarter ended December 31, 2023.
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):    
      Three Months Ended
    SBA Lending (Q2) Data December 31,   September 30,   June 30,   March 31,    December 31,
    (In thousands, except percentage data) 2024   2024    2024   2024   2023
                                 
    Final funded loans guaranteed portion sold, SBA $ 10,785     $ 10,880     $ 7,515     $ 15,144     $ 14,098  
                                 
    Gross gain on sales of loans, SBA $ 1,141     $ 1,029     $ 811     $ 1,443     $ 1,303  
    Weighted average gross gain on sales of loans, SBA 10.58 %   9.46 %   10.79 %   9.53 %   9.24 %
                                 
    Net gain on sales of loans, SBA (4) $ 711     $ 647     $ 581     $ 951     $ 834  
    Weighted average net gain on sales of loans, SBA 6.59 %   5.95 %   7.73 %   6.28 %   5.92 %
                                 
                                 
    (4) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Summarized Consolidated Average Balance Sheets December 31,   September 30,
      June 30,   March 31,   December 31,
    (In thousands)   2024       2024       2024       2024       2023  
    Interest-earning assets                
    Average balances:                
    Interest-bearing deposits with banks $ 21,102     $ 16,841     $ 26,100     $ 24,587     $ 20,350  
    Loans   2,010,082       1,988,997       1,943,716       1,914,609       1,857,654  
    Investment securities – taxable   101,960       99,834       101,350       102,699       103,728  
    Investment securities – nontaxable   160,929       158,917       157,991       157,960       159,907  
    FRB and FHLB stock   24,986       24,986       24,986       24,986       24,968  
    Total interest-earning assets $ 2,319,059     $ 2,289,575     $ 2,254,143     $ 2,224,841     $ 2,166,607  
                       
    Interest income (tax equivalent basis):            
    Interest-bearing deposits with banks $ 210     $ 209     $ 324     $ 261     $ 249  
    Loans   29,617       29,450       28,155       27,133       26,155  
    Investment securities – taxable   914       910       918       923       942  
    Investment securities – nontaxable   1,715       1,685       1,665       1,662       1,687  
    FRB and FHLB stock   493       471       519       499       74  
    Total interest income (tax equivalent basis) $ 32,949     $ 32,725     $ 31,581     $ 30,478     $ 29,107  
                       
    Weighted average yield (tax equivalent basis, annualized):          
    Interest-bearing deposits with banks   3.98 %     4.96 %     4.97 %     4.25 %     4.89 %
    Loans   5.89 %     5.92 %     5.79 %     5.67 %     5.63 %
    Investment securities – taxable   3.59 %     3.65 %     3.62 %     3.59 %     3.63 %
    Investment securities – nontaxable   4.26 %     4.24 %     4.22 %     4.21 %     4.22 %
    FRB and FHLB stock   7.89 %     7.54 %     8.31 %     7.99 %     1.19 %
    Total interest-earning assets   5.68 %     5.72 %     5.60 %     5.48 %     5.37 %
                       
    Interest-bearing liabilities              
    Interest-bearing deposits $ 1,671,156     $ 1,563,258     $ 1,572,871     $ 1,549,012     $ 1,389,384  
    Federal Home Loan Bank borrowings   315,583       378,956       351,227       333,275       440,786  
    Subordinated debt and other borrowings   48,616       48,576       48,537       48,497       48,458  
    Total interest-bearing liabilities $ 2,035,355     $ 1,990,790     $ 1,972,635     $ 1,930,784     $ 1,878,628  
                       
    Interest expense:                
    Interest-bearing deposits $ 13,606     $ 12,825     $ 12,740     $ 12,546     $ 9,989  
    Federal Home Loan Bank borrowings   2,617       3,521       3,021       2,298       3,769  
    Subordinated debt and other borrowings   764       800       799       833       784  
    Total interest expense $ 16,987     $ 17,146     $ 16,560     $ 15,677     $ 14,542  
                       
    Weighted average cost (annualized):            
    Interest-bearing deposits   3.26 %     3.28 %     3.24 %     3.24 %     2.88 %
    Federal Home Loan Bank borrowings   3.32 %     3.72 %     3.44 %     2.76 %     3.42 %
    Subordinated debt and other borrowings   6.29 %     6.59 %     6.58 %     6.87 %     6.47 %
    Total interest-bearing liabilities   3.34 %     3.45 %     3.36 %     3.25 %     3.10 %
                       
    Net interest income (taxable equivalent basis) $ 15,962     $ 15,579     $ 15,021     $ 14,801     $ 14,565  
    Less: taxable equivalent adjustment   (500 )     (502 )     (487 )     (463 )     (452 )
    Net interest income $ 15,462     $ 15,077     $ 14,534     $ 14,338     $ 14,113  
                       
    Interest rate spread (tax equivalent basis, annualized)   2.34 %     2.27 %     2.24 %     2.23 %     2.27 %
                       
    Net interest margin (tax equivalent basis, annualized)   2.75 %     2.72 %     2.67 %     2.66 %     2.69 %

    The MIL Network

  • MIL-OSI Russia: Financial news: 01/28/2025, 14:47 the values of the lower limit of the repo price corridor, the rollover rate and the range of interest rate risk assessment of the CIAN security (CIAN-addr) were changed.

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    01/28/2025 14:47

    In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC) on 28.01.2025, 14-47 (Moscow time), the values of the lower limit of the repo price corridor with settlement code Y0/Y1Dt (up to -20.0%), the transfer rate and the range of interest rate risk assessment (up to -0.56 rubles, equivalent to a rate of 57.72%) of the CIAN security (CIAN-addr) were changed.

    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.

    Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

    HTTPS: //VVV. MOEX.K.M.M.

    MIL OSI Russia News

  • MIL-OSI Russia: Financial news: 01/28/2025, 10-36 the values of the lower limit of the repo price corridor, the transfer rate and the range of interest rate risk assessment of the CIAN security (CIAN-addr) were changed.

    Translartion. Region: Russians Fedetion –

    Source: Moscow Exchange – Moscow Exchange –

    01/28/2025 10:36

    In accordance with the Methodology for determining the risk parameters of the stock market and deposit market of Moscow Exchange PJSC by NCO NCC (JSC) on 28.01.2025, 10-36 (Moscow time), the values of the lower limit of the repo price corridor with settlement code Y0/Y1Dt (up to -20.0%), the transfer rate and the range of interest rate risk assessment (up to -0.39 rubles, equivalent to a rate of 46.36%) of the CIAN security (CIAN-addr) were changed.

    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.

    Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

    HTTPS: //VVV. MEEX.K.M.M.

    MIL OSI Russia News

  • MIL-OSI Australia: Minister Rishworth interview on ABC News Breakfast

    Source: Ministers for Social Services

    E&OE TRANSCRIPT

    Topics: Updated Australia’s Disability Strategy; Inflation; AI chatbot DeepSeek; Election.

    JAMES GLENDAY, HOST:    Now, Australians with disability are the focus of the Federal Government today as it commits to additional changes, months after a scathing Royal Commission was handed down. An updated Disability Strategy will be launched by the Social Services Minister, Amanda Rishworth, who I am happy to say, joins us now from Geelong. Minister, good morning.

    AMANDA RISHWORTH, MINISTER FOR SOCIAL SERVICES:    Great to be with you.

    JAMES GLENDAY:    So, there’s a specific focus on homelessness in this updated Strategy. How many people are going to be covered by this document?

    AMANDA RISHWORTH:    This Strategy is actually a Strategy for all people with disability. The 5.5 million Australians living with disability. We know that if they are going to be able to fully participate in community life, then we need to make sure that our communities, our housing, is more accessible. And so that is what the Strategy is all about. How do we make our communities, our homes, more accessible. There has been a lot of consultation done with people with disability and it was highlighted that while housing has been a focus of Australia’s Disability Strategy, that homelessness and the prevention of homelessness for people with disability needed to be a focus as well. And so, what the Strategy will do is actually get all levels of government, state government and Commonwealth government, making sure that when it comes to homelessness services, there will be a particular focus on meeting the needs of people with disability. And when it comes to building homes, that there will be a focus in making sure that those homes are more accessible as well, so that people with disability have more choice over where they live.

    JAMES GLENDAY:    We’re going to have more on this story on the ABC throughout the day. And thank you for persisting through that alarm behind you there, Minister. Just on another topic, of course, cost of living is a very, very big issue for a lot of Australians at the moment. And some key inflation figures are out today. Are you expecting that data will be enough to convince the Reserve Bank to deliver that much anticipated first rate cut?

    AMANDA RISHWORTH:    First, I’d say obviously the Reserve Bank is independent, it makes its own decisions. But I would say what our Government has been doing is really focused on fighting inflation. Of course, we inherited a situation where inflation had a six in front of it and was going up. The most recent figures, it had a two in front of it and is coming down. We’ve also seen wages up and of course unemployment low. So, we’ve been working really hard to make sure that we are fighting inflation, at the same time supporting people with cost of living measures and making sure that we’re seeing wages go up and of course, making sure there’s jobs for people. So, this has been the really important work our Government’s been doing and doing what we can to fight inflation and give the best possible conditions for the Reserve Bank to make its decision.

    JAMES GLENDAY:    You would have seen yesterday, no doubt, that a lot of people have been downloading a new Chinese AI chatbot, DeepSeek, which has triggered a share market sell off. Some analysts this morning arguing this is good for competition in the global AI arms race. Others that this is a potential risk to national security. What is your view?

    AMANDA RISHWORTH:    Well, firstly, I would say broadly AI has so much potential to help us in our daily lives and have an impact. In fact, when we think about people with disability, I’ve seen circumstances where AI has helped them do their job. So, it has a lot of potential if it’s used safely, responsibly and ethically. And so, I think the question’s got to be how we are preparing our country for these new AI tools that will be coming out. And we’re doing that in a number of ways. Whether it’s the ethics code, whether it’s the safety standards or indeed the mandatory guardrails. These are all important pieces of legislative and regulatory architecture that we need to have in place to make sure that people can trust AI. So, these are the challenges we’ve got. So, AI presents a huge opportunity but we do need to make sure that the guardrails are in place to make sure it’s done ethically and safely, importantly as well.

    JAMES GLENDAY:    Just on a guardrail, TikTok, another Chinese-owned app is banned from Government devices in Australia which probably tells us all we really need to know about what security agencies think of the app. Do you expect that this new chatbot, this new DeepSeek, will be subjected to similar rules pretty quickly?

    AMANDA RISHWORTH:    We get very good advice through our security agencies. I won’t predict what those agencies will do. But we have got incredibly good cyber capabilities that apply to Government but also support businesses in the community as well. So, we’ve taken cyber and the threat that cyber can have on our community very seriously which is why we’ve put together a cyber strategy. We have a whole range of things of security in place. So, look, I will wait. I have to be honest, I haven’t quite caught up with the revolution. I mean I haven’t downloaded any of these things yet. I’m still old school. I write my speeches myself.

    JAMES GLENDAY:    It’s not on your phone. I’m sure we’re going to hear more on this later. It is outside your portfolio, so that’s fair enough. Just finally Minister, this caught my eye and the election is not too far away. I read that in your South Australian electorate, your main opponent for the Liberal Party is going to be another Rishworth. Your cousin, in fact. How do you feel about that?

    AMANDA RISHWORTH:    Oh, look, I haven’t been in contact with my opponent. It’s a democracy. Anyone can run. So, you know. I’ll be putting what I stand for and my record forward at this election and I’m really proud to stand by the fact that I’ve fought very hard for my electorate every single day I’ve been the local member. I’ll be standing on that record and my commitment to my community.

    JAMES GLENDAY:    Are you sure? Are you worried at all, though? There’s going to be two Rishworths. Is there a risk of confusion? Could you bleed a few per cent of the vote? I know you’ve got a very safe seat.

    AMANDA RISHWORTH:    Oh, well, look, I’ll have to be honest. My community knows me. They know what I stand for. I’ve been out and about, and so I’ll be making sure that people know what I stand for. And I think, when they go into the ballot box, they’ll be making a considered choice and I hope they will vote for me.

    JAMES GLENDAY:    All right, Social Services Minister Amanda Rishworth, thank you for your time this morning and thank you for taking so many questions outside your portfolio area.

    AMANDA RISHWORTH:    Thank you.

    MIL OSI News

  • MIL-OSI Security: Former Minneapolis Mayoral Aide and Safari Restaurant Co-Owner Both Plead Guilty in $250 Million Feeding Our Future Fraud Scheme

    Source: Office of United States Attorneys

    MINNEAPOLIS –Two more defendants pleaded guilty for their roles in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, from approximately April 2020 through January 2022, Abdulkadir Nur Salah, 38, of Columbia Heights, Minnesota, and Abdi Nur Salah, 37, of St. Paul, Minnesota, knowingly participated in a scheme to defraud a federal child nutrition program designed to provide free meals to children in need. The co-conspirators obtained, misappropriated, and laundered millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the Covid-19 pandemic. Rather than feed children, the defendants took advantage of the Covid-19 pandemic—and the resulting program changes—to enrich themselves by fraudulently misappropriating millions of dollars in federal child nutrition program funds.

    According to court documents, Abdulkadir Nur Salah was co-owner and operator of Safari Restaurant, a site that received more than $16 million in fraudulent Federal Child Nutrition Program funds. Abdi Nur Salah registered Stigma-Free International, a non-profit entity used to carry out the fraud scheme with sites throughout Minnesota, including in Willmar, Mankato, St. Cloud, Waite Park, and St. Paul. Abdi Salah also worked for the City of Minneapolis as a Senior Policy Aide to the Mayor. 

    As part of their plea agreement entered today, each defendant agreed that a variety of assets and money were derived specifically from their fraud scheme and are thus subject to forfeiture to the United States. For Abdulkadir Salah that includes: $309,993.51 seized from Bell Bank account for Cosmopolitan Business Solutions d/b/a Safari Restaurant; $435,512.44 seized from Bell Bank account for 3017 LLC; $472,889.08 seized from Northeast Bank account for 3017 LLC; real estate property located at 2722 Park Avenue South, Minneapolis, Minnesota. For Abdi Salah, that includes $343,418.98 seized from Star Choice Credit Union account for Stone Bridge Development, LLC; real estate properties located at 8432 Noble Avenue, North Brooklyn Park, Minnesota (known previously as Kelly’s 19th Hole) and 2529 12th Avenue South, Minneapolis, Minnesota. 

    Both pleaded guilty today in U.S. District Court before Chief Judge Patrick J. Schiltz. Their sentencing hearings will be scheduled at a later date.

    The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

    Assistant U.S. Attorneys for the District of Minnesota Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
     

    MIL Security OSI

  • MIL-OSI Security: Washington man admits illegal possession of firearms after being removed from Amtrak train in Montana

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    MISSOULA —A Washington man with a bank robbery conviction admitted today to illegally possessing firearms after law enforcement removed him from an Amtrak train in Libby and found him in possession of multiple guns, U.S. Attorney Jesse Laslovich said.

    The defendant, Mallory Nehemiah Brown, 43, of Auburn, Washington, pleaded guilty to prohibited person in possession of a firearm. Brown faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.

    U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for May 29 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Brown was detained pending further proceedings.

    The government alleged in court documents that in 2004, Brown was convicted of bank robbery in federal district court in California and prohibited from possessing a firearm or ammunition. On Jan. 8, 2024, Brown boarded an Amtrak train in Seattle, Washington, with a black duffel bag and several long boxes. Brown placed his bags and boxes on the luggage rack. The train was bound for Washington, D.C., with a stop in Chicago, Illinois. On Jan. 9, 2024, the train stopped in Libby based on a complaint by other passengers about Brown. Law enforcement removed Brown from the train. The train conductor located Brown’s bags. Inside, he discovered four firearms, ammunition, magazines, a suppressor, eight firearms receivers, night vision goggles, a tactical vest and other assorted accessories. The four firearms were identified as a .22LR HV rifle, which had a serial number; a 12-gauge pump shotgun with an obliterated serial number; a 12-gauge semi-auto shot gun with no visible serial number; and a 9mm semi-auto pistol with no visible serial number. Brown denied the bags belonged to him, however, several Amtrak employees identified Brown as the person who loaded the bags on the train. One of the boxes had a shipping label on it addressed to “Mallory Brown.”

    The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Libby Police Department, Lincoln County Sheriff’s Office, FBI and Montana Probation and Parole conducted the investigation.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    MIL Security OSI

  • MIL-OSI Security: Man Admits Transporting Minor to Super Bowl, St. Louis for Prostitution

    Source: Office of United States Attorneys

    ST. LOUIS – A Missouri man pleaded guilty Tuesday and admitted transporting a minor across state lines for sex.

    JoeMarius Green, 24, pleaded guilty in U.S. District Court in St. Louis to one felony count of transporting a minor across state lines to engage in prostitution. Green’s co-defendant, Chantel Robinson, 20, pleaded guilty in November to one felony count of possession of child pornography.

    Green admitted as part of his plea that he took a female minor and others from Dallas to Kansas City on Feb. 12, 2023, to engage in prostitution during the Super Bowl. After about four days, Green took the victim and others to a St. Louis area hotel for the same reason. Green admitted managing the online prostitution ads, renting hotel rooms, setting price points for sex acts and taking all cash proceeds from the victim’s commercial sex acts.

    Robinson admitted engaging in commercial sex acts, taking sexually explicit and sexually suggestive photos of minors and posting online advertisements for commercial sex acts. She oversaw the prostitution activities of minors when Green was absent.

    Green is scheduled to be sentenced on June 25. The charge carries a penalty of 10 years to life in prison. Robinson is scheduled to be sentenced April 8. Her charge carries a penalty of up to 20 years in prison.

    The St. Louis County Police Department and the FBI investigated the case.  Assistant U.S. Attorney Dianna Edwards is prosecuting the case.

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

    MIL Security OSI

  • MIL-OSI Security: Woman Sentenced for Fraud Scheme Involving Claims for Unnecessary Respiratory Tests Submitted with COVID-19 Tests

    Source: United States Attorneys General

    A California woman was sentenced today to nine years in prison for her role in fraudulently submitting claims to governmental and private insurance programs during the COVID‑19 pandemic for expensive respiratory pathogen panel (RPP) tests that were medically unnecessary and never ordered by health care providers.

    According to court documents, Lourdes Navarro, 66, of Glendale, and Imran Shams owned and controlled Matias Clinical Laboratory, doing business as Health Care Providers Laboratory (HCPL). Navarro and Shams conspired to obtain nasal swab specimens that enabled HCPL to test for COVID-19, as well as to obtain testing orders from physicians and other medical professionals. The specimens were collected from, among others, residents and staff at nursing homes, assisted living facilities, rehabilitation facilities, and similar types of facilities, and from students and staff at primary and secondary schools, for the purported purpose of conducting screening tests to identify and isolate individuals infected with COVID-19. However, Navarro and Shams caused HCPL to perform RPP tests on most of the specimens, even though only COVID-19 testing had been ordered and there was no medical justification for conducting RPP tests on asymptomatic individuals who needed only COVID-19 screening tests. Through HCPL, Navarro and Shams billed approximately $369 million for the RPP tests to Medicare, the Health Resources and Services Administration COVID-19 Uninsured Program, and a private health insurance company, and were reimbursed approximately $46.7 million for fraudulent claims.

    Navarro was also ordered to forfeit $11,662,939 in funds that the government had previously seized from three bank accounts. The total amount seized and forfeited from Navarro and Shams is $14,518,485. Navarro also was ordered to pay $46,735,400 in restitution.

    Navarro pleaded guilty on Oct. 5, 2023, to conspiracy to commit health care fraud and wire fraud. Shams pleaded guilty on Jan. 24, 2023, in the Central District of California to conspiracy to commit health care fraud and concealment of his exclusion from Medicare and was sentenced to 10 years in prison on Jan. 30, 2024. In addition, on May 29, 2024, Shams was sentenced to five years in prison in connection with his 2017 plea in the Eastern District of New York to conspiracy to commit money laundering, conspiracy to pay and receive kickbacks, and defrauding the United States by obstructing the lawful functions of the IRS, of which three years were ordered to run consecutive to the Central District of California sentence.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Rochelle Wong of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

    The FBI and HHS-OIG investigated the case.

    Trial Attorneys Gary A. Winters and Raymond E. Beckering III of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Maxwell Coll for the Central District of California handled the financial penalties.

    The Justice Department’s COVID-19 Fraud Enforcement Task Force marshals the resources of the department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, visit www.justice.gov/coronavirus.

    MIL Security OSI

  • MIL-OSI Security: Belcourt Man Sentenced to Life in Federal Prison for Sexual Abuse and Domestic Assault by Strangulation

    Source: Office of United States Attorneys

    Fargo – United States Attorney Mac Schneider announced that Justin Lee Baker, age 44, from Belcourt, ND, appeared in federal court on January 28, 2025, before District Court Judge Peter Welte and was sentenced to life in federal prison, and $400 in special assessment fees for the offenses of sexual abuse by threat of death or serious bodily injury (two counts) and assault of a spouse, intimate partner, or dating partner by strangulation (two counts).

    As noted in court documents, in or about August 2020, law enforcement in Belcourt, ND, was dispatched to a residence for a report of a domestic disturbance.  Jane Doe 1 reported she had been severely beaten by her boyfriend, identified as Baker. Law enforcement observed extensive bruising throughout Jane Doe 1’s face, neck, chest, arms, and legs, as well as a laceration on top of her head.  In or about August 2023, Jane Doe 1 was interviewed by the Federal Bureau of Investigation regarding the incident.  In addition to describing the physical assault she previously reported, Jane Doe 1 described being sexually assaulted by Baker including him using objects causing excruciating pain.  Jane Doe 1 believed Baker was going to kill her. Jane Doe 1 indicated Baker had strangled her and she had lost consciousness during the course of the assault. 

    Through the course of the investigation, the Federal Bureau of Investigations identified several other women physically and sexually assaulted by Baker, including Jane Doe 2.  Jane Doe 2 was interviewed in August 2023.  She described being held captive in Baker’s camper and being physically and sexually assaulted.  Jane Doe 2 described Baker “wailing” on her, strangling her, and sexually assaulting her with his penis.  Jane Doe 2 stated the assault caused her to lose consciousness and extreme pain. Jane Doe 2 stated Baker threatened she would be “six feet under” and Jane Doe 2 feared Baker would kill her. 

    “This sentence is a fitting one considering the brutality and depravity of the defendant’s crimes against his domestic partners and women in the community,” Schneider said. “Domestic violence and sexual abuse are serious crimes, and as this case shows we will not hesitate to bring abusers to federal court to face justice where our office has jurisdiction. I give credit to our career prosecutors and partners in the FBI for obtaining this result and removing this individual from the community.”  

    “The horrendous sexual abuse committed by Justin Lee Baker is cruel and reprehensible,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “This sentencing sends a clear message: the FBI will relentlessly pursue those who prey on others, especially the innocent and defenseless, and ensure they are held accountable.”

    This case was investigated by the Federal Bureau of Investigation.

    # # #

    MIL Security OSI

  • MIL-OSI: First Busey Corporation Announces 2024 Fourth Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    CHAMPAIGN, Ill., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE)

    Net Income of $28.1 million
    Diluted EPS of $0.49

    FOURTH QUARTER 2024 HIGHLIGHTS

    • Adjusted net income1 of $30.7 million, or $0.53 per diluted common share
    • Adjusted noninterest income1 of $35.4 million, or 30.3% of total revenue
    • Record high quarterly and annual revenue of $17.0 million and $65.0 million, respectively, for the Wealth Management segment
    • Tangible book value per common share1 of $17.88 at December 31, 2024, compared to $16.62 at December 31, 2023, a year-over-year increase of 7.6%
    • Tangible common equity1 increased to 8.76% of tangible assets at December 31, 2024, compared to 7.75% at December 31, 2023
    • Received stockholder approvals for the CrossFirst Bankshares, Inc. merger in December 2024, followed by remaining requisite regulatory approvals in January 2025

    For additional information, please refer to the 4Q24 Earnings Investor Presentation.

    MESSAGE FROM OUR CHAIRMAN & CEO

    Fourth Quarter Financial Results

    Net income for First Busey Corporation (“Busey,” “Company,” “we,” “us,” or “our”) was $28.1 million for the fourth quarter of 2024, or $0.49 per diluted common share, compared to $32.0 million, or $0.55 per diluted common share, for the third quarter of 2024, and $25.7 million, or $0.46 per diluted common share, for the fourth quarter of 2023. Adjusted net income1, which excludes the impact of acquisition and restructuring expenses, was $30.7 million, or $0.53 per diluted common share, for the fourth quarter of 2024, compared to $33.5 million, or $0.58 per diluted common share, for the third quarter of 2024 and $29.1 million or $0.52 per diluted common share for the fourth quarter of 2023. Annualized return on average assets and annualized return on average tangible common equity1 were 0.93% and 10.86%, respectively, for the fourth quarter of 2024. Annualized adjusted return on average assets1 and annualized adjusted return on average tangible common equity1 were 1.01% and 11.87%, respectively, for the fourth quarter of 2024.

    Taking into account our fourth quarter results, full year 2024 net income and adjusted net income1 were $113.7 million, or $1.98 per diluted common share, and $119.8 million, or $2.08 per diluted common share, respectively. Return on average assets and adjusted return on average assets1 were 0.94% and 0.99%, respectively. Return on average tangible common equity1 and adjusted return on average tangible common equity1 were 11.65% and 12.28%, respectively.

    Full year 2024 net income and adjusted net income1 include $6.1 million of net securities losses and $7.7 million in gains on the sale of mortgage servicing rights. Net income and adjusted net income1 for 2024 were further impacted by a one-time deferred tax valuation adjustment of $1.4 million resulting from a change to our Illinois apportionment rate due to recently enacted regulations. Excluding the tax-effected impact of these items, further adjusted net income1 would have been $120.0 million, equating to adjusted diluted earnings per common share1 of $2.09.

    Pre-provision net revenue1 was $38.8 million for the fourth quarter of 2024, compared to $41.7 million for the third quarter of 2024 and $32.9 million for the fourth quarter of 2023. Pre-provision net revenue to average assets1 was 1.28% for the fourth quarter of 2024, compared to 1.38% for the third quarter of 2024, and 1.06% for the fourth quarter of 2023. Adjusted pre-provision net revenue1 was $42.0 million for the fourth quarter of 2024, compared to $44.1 million for the third quarter of 2024 and $40.2 million for the fourth quarter of 2023. Adjusted pre-provision net revenue to average assets1 was 1.38% for the fourth quarter of 2024, compared to 1.46% for the third quarter of 2024 and 1.30% for the fourth quarter of 2023.

    Taking into account our fourth quarter results, full year 2024 pre-provision net revenue1 and adjusted pre-provision net revenue1 were $168.0 million and $167.3 million, respectively. Pre-provision net revenue to average assets1 and adjusted pre-provision net revenue to average assets1 were each 1.39%.

    Our fee-based businesses continue to add revenue diversification. Total noninterest income was $35.2 million for the fourth quarter of 2024, compared to $35.8 million for the third quarter of 2024 and $31.3 million for the fourth quarter of 2023. Fourth quarter results included $0.2 million in net securities losses. Adjusted noninterest income1 was $35.4 million, or 30.3% of operating revenue1, during the fourth quarter of 2024, compared to $35.0 million, or 29.8% of operating revenue1, for the third quarter of 2024 and $30.5 million, or 28.3% of operating revenue1, for the fourth quarter of 2023. Wealth management fees and wealth management referral income included in other noninterest income contributed $17.0 million and payment technology solutions contributed $5.1 million to our consolidated noninterest income for the fourth quarter of 2024, representing 62.3% of adjusted noninterest income1 on a combined basis.

    For the full year 2024, total noninterest income was $139.7 million. Wealth management fees and wealth management referral income included in other noninterest income contributed $65.0 million and payment technology solutions contributed $22.0 million to our consolidated noninterest income for 2024, representing 63.0% of adjusted noninterest income1 on a combined basis.

    Busey views certain non-operating items, including acquisition-related expenses and restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). Non-operating pretax adjustments for acquisition and restructuring expenses1 were $3.6 million in the fourth quarter of 2024. Busey believes that its non-GAAP measures (which are identified with the endnote labeled as 1) facilitate the assessment of its financial results and peer comparability. For more information and a reconciliation of these non-GAAP measures in tabular form, see “Non-GAAP Financial Information.

    We remain focused on prudently managing our expense base and operating efficiency in the current operating environment. Noninterest expense was $78.2 million in the fourth quarter of 2024, compared to $75.9 million in the third quarter of 2024 and $75.0 million in the fourth quarter of 2023. Adjusted core expense1, which excludes the amortization of intangible assets and new markets tax credits, acquisition and restructuring expenses, and the provision for unfunded commitments, was $72.6 million in the fourth quarter of 2024, compared to $71.0 million in the third quarter of 2024 and $65.2 million in the fourth quarter of 2023. The year-over-year comparable period growth in adjusted core expense can be attributed primarily to the acquisition of Merchants and Manufacturers Bank Corporation (“M&M”) and general inflationary pressures on compensation and benefits and to a lesser extent certain other expense categories.

    Quarterly pre-tax expense synergies resulting from our acquisition of M&M are anticipated to be $1.6 million to $1.7 million per quarter when fully realized. Quarterly run-rate savings are projected to be achieved by the first quarter of 2025. During the fourth quarter of 2024, we achieved approximately 86% of the full quarterly savings.

    Planned Partnership with CrossFirst

    On August 26, 2024, Busey and CrossFirst Bankshares, Inc. (“CrossFirst”) entered into an agreement and plan of merger (the “merger agreement”) pursuant to which CrossFirst will merge with and into Busey (the “merger”) and CrossFirst’s wholly-owned subsidiary, CrossFirst Bank, will merge with and into Busey Bank. This partnership will create a premier commercial bank in the Midwest, Southwest, and Florida, with 77 full-service locations across 10 states—Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas—and approximately $20 billion in combined assets, $17 billion in total deposits, $14 billion in total loans, and $14 billion in wealth assets under care.

    Under the terms of the merger agreement, CrossFirst stockholders will have the right to receive for each share of CrossFirst common stock 0.6675 of a share of Busey’s common stock. Upon completion of the transaction, Busey’s stockholders will own approximately 63.5% of the combined company and CrossFirst’s stockholders will own approximately 36.5% of the combined company, on a fully-diluted basis. Busey common stock will continue to trade on the Nasdaq under the “BUSE” stock ticker symbol.

    On December 20, 2024, Busey and CrossFirst stockholders voted to approve the merger. On January 16, 2025, Busey received regulatory approval from the Board of Governors of the Federal Reserve System for the merger. Busey and CrossFirst intend to close the merger on March 1, 2025, subject to the satisfaction of the remaining customary closing conditions. The transaction has also been approved by the Illinois Department of Financial and Professional Regulation and the Kansas Office of the State Bank Commissioner. The combined holding company will continue to operate under the First Busey Corporation name and the combined bank will operate under the Busey Bank name. It is anticipated that CrossFirst Bank will merge with and into Busey Bank in mid-2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank. In connection with this merger, Busey incurred one-time pretax acquisition-related expenses of $2.4 million during the fourth quarter of 2024 and $3.9 million for the full year.

    For further details on the merger, see Busey’s Current Report on Form 8‑K announcing the merger, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 27, 2024.

    Busey’s Conservative Banking Strategy

    Busey’s financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.

    The quality of our core deposit franchise is a critical value driver of our institution. Our granular deposit base continues to position us well, with core deposits1 representing 96.5% of our deposits as of December 31, 2024. Our retail deposit base was comprised of more than 251,000 accounts with an average balance of $22 thousand and an average tenure of 16.9 years as of December 31, 2024. Our commercial deposit base was comprised of more than 32,000 accounts with an average balance of $98 thousand and an average tenure of 12.8 years as of December 31, 2024. We estimate that 30% of our deposits were uninsured and uncollateralized2 as of December 31, 2024, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

    Asset quality remains strong by both Busey’s historical and current industry trends. Non-performing assets increased to $23.3 million during the fourth quarter of 2024, representing 0.19% of total assets. The increase relates to one Commercial Real Estate loan that was classified in the fourth quarter of 2023 and was moved to non-accrual during the fourth quarter of 2024. This loan carries a remaining balance of $15.0 million following a $3.0 million charge-off in the fourth quarter of 2024. Busey’s results for the fourth quarter of 2024 include a $1.3 million provision expense for credit losses and a $0.5 million provision release for unfunded commitments. The allowance for credit losses was $83.4 million as of December 31, 2024, representing 1.08% of total portfolio loans outstanding, and providing coverage of 3.59 times our non-performing loan balance. Including the charge-off for the Commercial Real Estate loan mentioned above, Busey’s net charge-offs totaled $2.9 million for the fourth quarter of 2024. As of December 31, 2024, our commercial real estate loan portfolio of investor-owned office properties within Central Business District3 areas was minimal at $2.0 million. Our credit performance continues to reflect our highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with our company.

    The strength of our balance sheet is also reflected in our capital foundation. In the fourth quarter of 2024, our Common Equity Tier 1 ratio4 was 14.10% and our Total Capital to Risk Weighted Assets ratio4 was 18.53%. Our regulatory capital ratios continue to provide a buffer of more than $610 million above levels required to be designated well-capitalized. Our Tangible Common Equity ratio1 was 8.76% during the fourth quarter of 2024, compared to 8.96% for the third quarter of 2024 and 7.75% for the fourth quarter of 2023. Busey’s tangible book value per common share1 was $17.88 at December 31, 2024, compared to $18.19 at September 30, 2024, and $16.62 at December 31, 2023, reflecting a 7.6% year-over-year increase. During the fourth quarter of 2024, we paid a common share dividend of $0.24.

    Community Banking

    In the last two months of 2024, Busey offered a new, short-term Express Microloan product, created to help small businesses thrive. With a competitive 4.99% fixed interest rate, flexible terms and loans of up to $10,000, existing Busey customers with business checking accounts were invited to apply—allowing them to manage expenses, refinance debt, invest in new opportunities, and enhance operations. Busey originated more than 100 Express Microloans in 60-days, meeting the needs of our small business customers.

    As we reflect back on 2024 and look ahead to 2025, we feel confident that we are well positioned to produce quality growth and profitability. The pending CrossFirst transaction fits with our acquisition strategy and we are excited to welcome our CrossFirst colleagues into the Busey family. We are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal stockholders.

        Van A. Dukeman
      Chairman and Chief Executive Officer
      First Busey Corporation
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
    (dollars in thousands, except per share amounts)
                       
      Three Months Ended   Years Ended
      December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    EARNINGS & PER SHARE AMOUNTS                  
    Net income $ 28,105     $ 32,004     $ 25,749     $ 113,691     $ 122,565  
    Diluted earnings per common share   0.49       0.55       0.46       1.98       2.18  
    Cash dividends paid per share   0.24       0.24       0.24       0.96       0.96  
    Pre-provision net revenue1, 2   38,828       41,744       32,909       167,996       158,502  
    Operating revenue2   116,995       117,688       107,888       460,671       444,034  
                       
    Net income by operating segment:                  
    Banking   30,856       33,221       25,164       117,266       123,853  
    FirsTech   (723 )     (61 )     325       (670 )     830  
    Wealth Management   5,853       5,618       4,233       22,030       18,804  
                       
    AVERAGE BALANCES                  
    Cash and cash equivalents $ 776,572     $ 502,127     $ 608,647     $ 555,281     $ 330,952  
    Investment securities   2,597,309       2,666,269       2,995,223       2,726,488       3,188,815  
    Loans held for sale   6,306       11,539       1,679       8,012       1,885  
    Portfolio loans   7,738,772       7,869,798       7,736,010       7,804,629       7,759,472  
    Interest-earning assets   11,048,350       10,942,745       11,235,326       10,999,424       11,181,010  
    Total assets   12,085,993       12,007,702       12,308,491       12,051,871       12,246,218  
                       
    Noninterest-bearing deposits   2,724,344       2,706,858       2,827,696       2,738,892       3,018,563  
    Interest-bearing deposits   7,325,662       7,296,921       7,545,234       7,301,124       7,052,370  
    Total deposits   10,050,006       10,003,779       10,372,930       10,040,016       10,070,933  
                       
    Federal funds purchased and securities sold under agreements to repurchase   135,728       132,688       182,735       147,786       200,894  
    Interest-bearing liabilities   7,763,729       7,731,459       8,054,663       7,763,084       7,825,459  
    Total liabilities   10,689,054       10,643,325       11,106,074       10,709,447       11,048,707  
    Stockholders’ equity – common   1,396,939       1,364,377       1,202,417       1,342,424       1,197,511  
    Tangible common equity2   1,029,539       994,657       846,948       975,823       838,164  
                       
    PERFORMANCE RATIOS                  
    Pre-provision net revenue to average assets1, 2, 3   1.28 %     1.38 %     1.06 %     1.39 %     1.29 %
    Return on average assets3   0.93 %     1.06 %     0.83 %     0.94 %     1.00 %
    Return on average common equity3   8.00 %     9.33 %     8.50 %     8.47 %     10.23 %
    Return on average tangible common equity2, 3   10.86 %     12.80 %     12.06 %     11.65 %     14.62 %
    Net interest margin2, 4   2.95 %     3.02 %     2.75 %     2.95 %     2.89 %
    Efficiency ratio2   64.45 %     62.15 %     66.89 %     61.76 %     61.65 %
    Adjusted noninterest income to operating revenue2   30.27 %     29.77 %     28.31 %     29.97 %     27.79 %
                       
    NON-GAAP FINANCIAL INFORMATION                  
    Adjusted pre-provision net revenue1, 2 $ 41,958     $ 44,104     $ 40,223     $ 167,317     $ 172,290  
    Adjusted net income2   30,725       33,533       29,123       119,805       126,012  
    Adjusted diluted earnings per share2   0.53       0.58       0.52       2.08       2.24  
    Adjusted pre-provision net revenue to average assets2, 3   1.38 %     1.46 %     1.30 %     1.39 %     1.41 %
    Adjusted return on average assets2, 3   1.01 %     1.11 %     0.94 %     0.99 %     1.03 %
    Adjusted return on average tangible common equity2, 3   11.87 %     13.41 %     13.64 %     12.28 %     15.03 %
    Adjusted net interest margin2, 4   2.92 %     2.97 %     2.74 %     2.92 %     2.87 %
    Adjusted efficiency ratio2   61.40 %     60.50 %     62.98 %     61.03 %     60.68 %

    ___________________________________________

    1. Net interest income plus noninterest income, excluding securities gains and losses, less noninterest expense.
    2. See Non-GAAP Financial Information for reconciliation.
    3. For quarterly periods, measures are annualized.
    4. On a tax-equivalent basis, assuming a federal income tax rate of 21%.
    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
    (dollars in thousands, except per share amounts)
               
      As of
      December 31,
    2024
      September 30,
    2024
      December 31,
    2023
    ASSETS          
    Cash and cash equivalents $ 697,659     $ 553,709     $ 719,581  
    Debt securities available for sale   1,810,221       1,818,117       2,087,571  
    Debt securities held to maturity   826,630       838,883       872,628  
    Equity securities   15,862       10,315       9,812  
    Loans held for sale   3,657       11,523       2,379  
               
    Commercial loans   5,552,288       5,631,281       5,635,048  
    Retail real estate and retail other loans   2,144,799       2,177,816       2,015,986  
    Portfolio loans   7,697,087       7,809,097       7,651,034  
               
    Allowance for credit losses   (83,404 )     (84,981 )     (91,740 )
    Restricted bank stock   49,930       6,000       6,000  
    Premises and equipment, net   118,820       120,279       122,594  
    Right of use assets   10,608       11,100       11,027  
    Goodwill and other intangible assets, net   365,975       368,249       353,864  
    Other assets   533,677       524,548       538,665  
    Total assets $ 12,046,722     $ 11,986,839     $ 12,283,415  
               
    LIABILITIES & STOCKHOLDERS’ EQUITY          
    Liabilities          
    Deposits:          
    Noninterest-bearing deposits $ 2,719,907     $ 2,683,543     $ 2,834,655  
    Interest-bearing checking, savings, and money market deposits   5,771,948       5,739,773       5,637,227  
    Time deposits   1,490,635       1,519,925       1,819,274  
    Total deposits   9,982,490       9,943,241       10,291,156  
               
    Securities sold under agreements to repurchase   155,610       128,429       187,396  
    Short-term borrowings               12,000  
    Long-term debt   227,723       227,482       240,882  
    Junior subordinated debt owed to unconsolidated trusts   74,815       74,754       71,993  
    Lease liabilities   11,040       11,470       11,308  
    Other liabilities   211,775       198,579       196,699  
    Total liabilities   10,663,453       10,583,955       11,011,434  
               
    Stockholders’ equity          
    Retained earnings   294,054       279,868       237,197  
    Accumulated other comprehensive income (loss)   (207,039 )     (170,913 )     (218,803 )
    Other stockholders’ equity1   1,296,254       1,293,929       1,253,587  
    Total stockholders’ equity   1,383,269       1,402,884       1,271,981  
    Total liabilities & stockholders’ equity $ 12,046,722     $ 11,986,839     $ 12,283,415  
               
    SHARE AND PER SHARE AMOUNTS          
    Book value per common share $ 24.31     $ 24.67     $ 23.02  
    Tangible book value per common share2 $ 17.88     $ 18.19     $ 16.62  
    Ending number of common shares outstanding   56,895,981       56,872,241       55,244,119  

    ___________________________________________

    1. Net balance of common stock ($0.001 par value), additional paid-in capital, and treasury stock.
    2. See Non-GAAP Financial Information for reconciliation.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    (dollars in thousands, except per share amounts)
                       
      Three Months Ended   Years Ended
      December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    INTEREST INCOME                  
    Interest and fees on loans $ 106,120     $ 111,336     $ 101,425   $ 426,422     $ 385,848  
    Interest and dividends on investment securities   16,788       18,072       20,634     73,970       82,994  
    Dividend income on bank stock   557       106       212     848       1,170  
    Other interest income   7,851       5,092       6,641     22,441       10,531  
    Total interest income $ 131,316     $ 134,606     $ 128,912   $ 523,681     $ 480,543  
                       
    INTEREST EXPENSE                  
    Deposits $ 44,152     $ 46,634     $ 45,409   $ 178,463     $ 123,985  
    Federal funds purchased and securities sold under agreements to repurchase   915       981       1,431     4,308       5,203  
    Short-term borrowings   25       26       248     701       12,775  
    Long-term debt   3,183       3,181       3,475     12,950       14,106  
    Junior subordinated debt owed to unconsolidated trusts   1,463       1,137       1,004     4,648       3,853  
    Total interest expense $ 49,738     $ 51,959     $ 51,567   $ 201,070     $ 159,922  
                       
    Net interest income $ 81,578     $ 82,647     $ 77,345   $ 322,611     $ 320,621  
    Provision for credit losses   1,273       2       455     8,590       2,399  
    Net interest income after provision for credit losses $ 80,305     $ 82,645     $ 76,890   $ 314,021     $ 318,222  
                       
    NONINTEREST INCOME                  
    Wealth management fees $ 16,786     $ 15,378     $ 13,715   $ 63,630     $ 57,309  
    Fees for customer services   7,911       8,168       7,484     30,933       29,044  
    Payment technology solutions   5,094       5,265       5,420     21,983       21,192  
    Mortgage revenue   496       355       218     2,075       1,089  
    Income on bank owned life insurance   1,080       1,189       1,019     5,130       4,701  
    Realized net gains (losses) on the sale of mortgage servicing rights         (18 )         7,724        
    Net securities gains (losses)   (196 )     822       761     (6,102 )     (2,199 )
    Other noninterest income   4,050       4,686       2,687     14,309       10,078  
    Total noninterest income $ 35,221     $ 35,845     $ 31,304   $ 139,682     $ 121,214  
                       
    NONINTEREST EXPENSE                  
    Salaries, wages, and employee benefits $ 45,458     $ 44,593     $ 42,730   $ 175,619     $ 162,597  
    Data processing expense   6,564       6,910       6,236     27,124       23,708  
    Net occupancy expense of premises   4,794       4,633       4,318     18,737       18,214  
    Furniture and equipment expense   1,650       1,647       1,694     6,805       6,759  
    Professional fees   4,938       3,118       2,574     12,804       7,147  
    Amortization of intangible assets   2,471       2,548       2,479     10,057       10,432  
    Interchange expense   1,305       1,352       1,355     6,001       6,864  
    FDIC insurance   1,330       1,413       1,167     5,603       5,650  
    Other noninterest expense   9,657       9,712       12,426     37,649       44,161  
    Total noninterest expense $ 78,167     $ 75,926     $ 74,979   $ 300,399     $ 285,532  
                       
    Income before income taxes $ 37,359     $ 42,564     $ 33,215   $ 153,304     $ 153,904  
    Income taxes   9,254       10,560       7,466     39,613       31,339  
    Net income $ 28,105     $ 32,004     $ 25,749   $ 113,691     $ 122,565  
                       
    SHARE AND PER SHARE AMOUNTS                  
    Basic earnings per common share $ 0.49     $ 0.56     $ 0.46   $ 2.01     $ 2.21  
    Diluted earnings per common share $ 0.49     $ 0.55     $ 0.46   $ 1.98     $ 2.18  
    Weighted average number of common shares outstanding, basic   57,061,542       57,033,359       55,403,662     56,610,032       55,432,322  
    Weighted average number of common shares outstanding, diluted   57,934,812       57,967,848       56,333,033     57,543,001       56,256,148  
                                         

    BALANCE SHEET STRENGTH

    Our balance sheet remains a source of strength. Total assets were $12.05 billion as of December 31, 2024, compared to $11.99 billion as of September 30, 2024, and $12.28 billion as of December 31, 2023.

    We remain steadfast in our conservative approach to underwriting and disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters, and this approach has impacted loan growth as predicted. Portfolio loans totaled $7.70 billion at December 31, 2024, compared to $7.81 billion at September 30, 2024, and $7.65 billion at December 31, 2023.

    Average portfolio loans were $7.74 billion for both the fourth quarter of 2024 and the fourth quarter of 2023, compared to $7.87 billion for the third quarter of 2024. Average interest-earning assets were $11.05 billion for the fourth quarter of 2024, compared to $10.94 billion for the third quarter of 2024, and $11.24 billion for the fourth quarter of 2023.

    Total deposits were $9.98 billion at December 31, 2024, compared to $9.94 billion at September 30, 2024, and $10.29 billion at December 31, 2023. Average deposits were $10.05 billion for the fourth quarter of 2024, compared to $10.00 billion for the third quarter of 2024 and $10.37 billion for the fourth quarter of 2023. Deposit fluctuations over the last several quarters were driven by a number of elements, including (1) seasonal factors, including ordinary course public fund flows and fluctuations in the normal course of business operations of certain core commercial customers, (2) the macroeconomic environment, including prevailing interest rates and inflationary pressures, (3) depositors moving some funds to accounts at competitors offering above-market rates, and (4) deposits moving within the Busey ecosystem between deposit accounts and our wealth management group. Core deposits1 accounted for 96.5% of total deposits as of December 31, 2024. Cost of deposits was 1.75% in the fourth quarter of 2024, which represents a decrease of 10 basis points from the third quarter of 2024. Excluding time deposits, Busey’s cost of deposits was 1.38% in the fourth quarter of 2024, a decrease of 12 basis points from the third quarter of 2024. Busey Bank continues to offer savings account specials to customers with larger account balances, with the intention of migrating maturing CDs to these managed rate products. Spot rates on total deposit costs, including noninterest bearing deposits, decreased by 13 basis points from 1.80% at September 30, 2024, to 1.67% at December 31, 2024. Spot rates on interest bearing deposits decreased by 17 basis points from 2.46% at September 30, 2024, to 2.29% at December 31, 2024.

    There were no short term borrowings as of December 31 or September 30, 2024, compared to $12.0 million at December 31, 2023. We had no borrowings from the Federal Home Loan Bank (“FHLB”) at the end of the fourth quarter of 2024, the third quarter of 2024, or the fourth quarter of 2023. We have sufficient on- and off-balance sheet liquidity5 to manage deposit fluctuations and the liquidity needs of our customers. As of December 31, 2024, our available sources of on- and off-balance sheet liquidity totaled $6.19 billion. We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the fourth quarter of 2024 had a weighted average term of 7.6 months at a rate of 3.58%, 128 basis points below our average marginal wholesale equivalent-term funding cost during the quarter. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were approximately $132.5 million in the fourth quarter of 2024. Cash flows from our securities portfolio are expected to be approximately $353.8 million for 2025, with a current book yield of 1.87%, and approximately $288.3 million for 2026, with a current book yield of 2.03%.

    ASSET QUALITY

    Credit quality continues to be strong. Loans 30-89 days past due totaled $8.1 million as of December 31, 2024, compared to $10.1 million as of September 30, 2024, and $5.8 million as of December 31, 2023. Non-performing loans were $23.2 million as of December 31, 2024, compared to $8.2 million as of September 30, 2024, and $7.8 million as of December 31, 2023. The increase relates to one Commercial Real Estate loan that was classified in the fourth quarter of 2023 and was moved to non-accrual during the fourth quarter of 2024. This loan carries a remaining balance of $15.0 million following a $3.0 million charge-off in the fourth quarter of 2024. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.30% as of December 31, 2024, compared to 0.11% as of September 30, 2024, and 0.10% as of December 31, 2023. Non-performing assets were 0.19% of total assets for the fourth quarter of 2024, compared to 0.07% for the third quarter of 2024 and 0.06% for the fourth quarter of 2023. Our total classified assets were $85.3 million at December 31, 2024, compared to $89.0 million at September 30, 2024, and $72.3 million at December 31, 2023. Our ratio of classified assets to estimated bank Tier 1 capital4 and reserves remains low by historical standards, at 5.6% as of December 31, 2024, compared to 5.9% as of September 30, 2024, and 5.0% as of December 31, 2023.

    Net charge-offs were $2.9 million for the fourth quarter of 2024, compared to $0.2 million for the third quarter of 2024, and $0.4 million for the fourth quarter of 2023. The fourth quarter charge-off relates to the Commercial Real Estate loan mentioned above. The allowance as a percentage of portfolio loans was 1.08% as of December 31, 2024, compared to 1.09% as of September 30, 2024, and 1.20% as of December 31, 2023. The ratio was impacted in 2024 by the acquisition of M&M’s Life Equity Loan® portfolio, as Busey did not record an allowance for credit loss for these loans due to no expected credit loss at default, as permitted under the practical expedient provided within the Accounting Standards Codification 326-20-35-6. The allowance coverage for non-performing loans was 3.59 times as of December 31, 2024, compared to 10.34 times as of September 30, 2024, and 11.74 times as of December 31, 2023.

    Busey maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.

    ASSET QUALITY (unaudited)
    (dollars in thousands)
               
      As of
      December 31,
    2024
      September 30,
    2024
      December 31,
    2023
    Total assets $ 12,046,722     $ 11,986,839     $ 12,283,415  
    Portfolio loans   7,697,087       7,809,097       7,651,034  
    Loans 30 – 89 days past due   8,124       10,141       5,779  
    Non-performing loans:          
    Non-accrual loans   22,088       8,192       7,441  
    Loans 90+ days past due and still accruing   1,149       25       375  
    Non-performing loans $ 23,237     $ 8,217     $ 7,816  
    Non-performing loans, segregated by geography:          
    Illinois / Indiana $ 19,558     $ 3,981     $ 3,715  
    Missouri   3,016       3,530       3,836  
    Florida   663       706       265  
    Other non-performing assets   63       64       125  
    Non-performing assets $ 23,300     $ 8,281     $ 7,941  
               
    Allowance for credit losses $ 83,404     $ 84,981     $ 91,740  
               
    RATIOS          
    Non-performing loans to portfolio loans   0.30 %     0.11 %     0.10 %
    Non-performing assets to total assets   0.19 %     0.07 %     0.06 %
    Non-performing assets to portfolio loans and other non-performing assets   0.30 %     0.11 %     0.10 %
    Allowance for credit losses to portfolio loans   1.08 %     1.09 %     1.20 %
    Coverage ratio of the allowance for credit losses to non-performing loans   3.59 x     10.34 x     11.74 x
    NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) (unaudited)
    (dollars in thousands)
                       
      Three Months Ended   Years Ended
      December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    Net charge-offs (recoveries) $ 2,850   $ 247   $ 425   $ 18,169   $ 2,267
    Provision expense (release)   1,273     2     455     8,590     2,399
                                 

    NET INTEREST MARGIN AND NET INTEREST INCOME

    Net interest margin1 was 2.95% for the fourth quarter of 2024, compared to 3.02% for the third quarter of 2024 and 2.75% for the fourth quarter of 2023. Excluding purchase accounting accretion, adjusted net interest margin1 was 2.92% for the fourth quarter of 2024, compared to 2.97% in the third quarter of 2024 and 2.74% in the fourth quarter of 2023. Net interest income was $81.6 million in the fourth quarter of 2024, compared to $82.6 million in the third quarter of 2024 and $77.3 million in the fourth quarter of 2023.

    After raising federal funds rates by a total of 525 basis points between March 2022 and July 2023, the Federal Open Market Committee (“FOMC”) lowered rates by 100 basis points beginning in September 2024. In anticipation of the FOMC pivot to an easing cycle, we limited our exposure to term funding structures and intentionally priced savings specials to encourage maturing CD balances to migrate to managed rate non-maturity products. Beginning in September we began lowering rates on special priced deposit accounts and other managed rate products to benefit from the FOMC rate cuts. In addition, approximately 7% of our deposit portfolio is indexed and immediately repriced with the rate cuts by the FOMC. CD balances comprise only 15% of the total deposit funding base. If rates move lower in 2025, we have the ability to reprice CD balances due to the short duration term structure of the portfolio. Approximately 58% of Busey’s non-maturity deposits are at rack rates with a weighted average rate of 0.01%. We continue to offer CD specials with shorter term structures as well as offering attractive premium savings rates to encourage rotation of maturing CD deposits into nimble pricing products. Components of the 7 basis point decrease in net interest margin1 during the fourth quarter of 2024 include:

    • Reduced non-maturity deposit funding costs contributed +9 basis points
    • Increased cash and securities portfolio yield contributed +6 basis points
    • Reduced time deposit funding costs contributed +1 basis point
    • Decreased loan portfolio and held for sale loan yields contributed -20 basis points
    • Decreased purchase accounting contributed -2 basis points
    • Increased borrowing expense -1 basis point

    Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 2.0% over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet restructuring strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have provided funding flows, and we had excess earning cash during the fourth quarter of 2024. Our cumulative interest-bearing non-maturity tightening cycle deposit beta peaked at 41% during the third quarter of 2024. Our total deposit beta for the completed tightening cycle was 34%. Since the onset of the current easing cycle, we have reduced our interest-bearing non-maturity deposit cost of funds by 18 basis points, which represents a 26% easing cycle beta. Deposit betas were calculated based on an average federal funds rate of 4.82% during the fourth quarter of 2024. The average federal funds rate has decreased by 68 basis points since the end of the tightening cycle that concluded in the third quarter of 2024.

    NONINTEREST INCOME

    Noninterest income was $35.2 million for the fourth quarter of 2024, as compared to $35.8 million for the third quarter of 2024 and $31.3 million for the fourth quarter of 2023. Excluding the impact of net securities gains and losses and immaterial follow-on adjustments from the previously announced mortgage servicing rights sale, adjusted noninterest income1 was $35.4 million, or 30.3% of operating revenue1, during the fourth quarter of 2024, $35.0 million, or 29.8% of operating revenue, for the third quarter of 2024, and $30.5 million, or 28.3% of operating revenue, for the fourth quarter of 2023.

    Consolidated wealth management fees were $16.8 million for the fourth quarter of 2024, compared to $15.4 million for the third quarter of 2024 and $13.7 million for the fourth quarter of 2023. On a segment basis, Wealth Management generated $17.0 million in revenue during the fourth quarter of 2024, a 22.7% increase over revenue of $13.8 million for the fourth quarter of 2023. Fourth quarter of 2024 results marked a new record high reported quarterly revenue for the Wealth Management operating segment. The Wealth Management operating segment generated net income of $5.9 million in the fourth quarter of 2024, compared to $5.6 million in the third quarter of 2024 and $4.2 million in the fourth quarter of 2023. Busey’s Wealth Management division ended the fourth quarter of 2024 with $13.83 billion in assets under care, compared to $13.69 billion at the end of the third quarter of 2024 and $12.14 billion at the end of the fourth quarter of 2023. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark6 over the last three and five years.

    Payment technology solutions revenue was $5.1 million for the fourth quarter of 2024, compared to $5.3 million for the third quarter of 2024 and $5.4 million for the fourth quarter of 2023. Excluding intracompany eliminations, the FirsTech operating segment generated revenue of $5.4 million during the fourth quarter of 2024, compared to $5.6 million in the third quarter of 2024 and $5.8 million in the fourth quarter of 2023.

    Wealth management fees, wealth management referral income included in other noninterest income, and payment technology solutions represented 62.3% of adjusted noninterest income1 for the fourth quarter of 2024.

    Fees for customer services were $7.9 million for the fourth quarter of 2024, compared to $8.2 million in the third quarter of 2024 and $7.5 million in the fourth quarter of 2023.

    Other noninterest income was $4.1 million in the fourth quarter of 2024, compared to $4.7 million in the third quarter of 2024 and $2.7 million in the fourth quarter of 2023. The third quarter of 2024 benefited from $0.8 million in revenue associated with certain wealth management activities that was reported as other noninterest income; in comparison, other noninterest income from wealth management activities was $0.2 million for the fourth quarter of 2024 and $0.1 million for the fourth quarter of 2023. Compared to the prior quarter, we also saw decreases in venture capital income and swap origination fee income, which were mostly offset by increases in commercial loan sales gains. When compared with the fourth quarter of 2023, increases in other noninterest income were primarily attributable to increases in commercial loan sales gains and venture capital income, as well as the addition of Life Equity Loan® servicing income beginning in the second quarter of 2024.

    OPERATING EFFICIENCY

    Noninterest expense was $78.2 million in the fourth quarter of 2024, compared to $75.9 million in the third quarter of 2024 and $75.0 million for the fourth quarter of 2023. The efficiency ratio1 was 64.5% for the fourth quarter of 2024, compared to 62.1% for the third quarter of 2024, and 66.9% for the fourth quarter of 2023. Adjusted core expense1 was $72.6 million in the fourth quarter of 2024, compared to $71.0 million in the third quarter of 2024 and $65.2 million in the fourth quarter of 2023. The adjusted core efficiency ratio1 was 61.8% for the fourth quarter of 2024, compared to 60.2% for the third quarter of 2024, and 60.1% for the fourth quarter of 2023. We expect to continue to prudently manage our expenses and to realize the full extent of M&M acquisition synergies in 2025.

    Noteworthy components of noninterest expense are as follows:

    • Salaries, wages, and employee benefits expenses were $45.5 million in the fourth quarter of 2024, compared to $44.6 million in the third quarter of 2024 and $42.7 million in the fourth quarter of 2023. Busey recorded $0.2 million of non-operating salaries, wages, and employee benefit expenses in the fourth quarter of 2024, compared to $0.1 million in the third quarter of 2024 and $3.8 million in the fourth quarter of 2023. Our associate-base consisted of 1,509 full-time equivalents as of December 31, 2024, compared to 1,510 as of September 30, 2024, and 1,479 as of December 31, 2023. The increase in our associate-base in 2024 was largely due to the M&M acquisition.
    • Data processing expense was $6.6 million in the fourth quarter of 2024, compared to $6.9 million in the third quarter of 2024 and $6.2 million in the fourth quarter of 2023. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
    • Professional fees were $4.9 million in the fourth quarter of 2024, compared to $3.1 million in the third quarter of 2024 and $2.6 million in the fourth quarter of 2023. Busey recorded $3.0 million of non-operating professional fees in the fourth quarter of 2024, as compared to $1.4 million in the third quarter of 2024 and $0.4 million in the fourth quarter of 2023. Fourth quarter of 2024 non-operating professional fees consisted of $1.9 million related to merger activities and $1.1 million in restructuring activities related to corporate strategy advisement.
    • Other noninterest expense was $9.7 million for both the third and fourth quarters of 2024, compared to $12.4 million in the fourth quarter of 2023. Busey recorded $0.3 million of non-operating costs in other noninterest expense in the fourth quarter of 2024, compared to $0.4 million in the third quarter of 2024 and $0.1 million in the fourth quarter of 2023. In connection with Busey’s adoption of ASU 2023-02 on January 1, 2024, Busey began recording amortization of New Markets Tax Credits as income tax expense instead of other operating expense, which resulted in a decrease to other operating expenses of $2.3 million compared to the fourth quarter of 2023. Other items contributing to the fluctuations in other noninterest expense included the provision for unfunded commitments, mortgage servicing rights valuation expenses, fixed asset impairment, marketing, business development, and expenses related to recruiting and onboarding.

    Busey’s effective tax rate for the fourth quarter of 2024 was 24.8%, which was lower than the combined federal and state statutory rate of approximately 28.0% due to the impact of tax exempt interest income, such as municipal bond interest, bank owned life insurance income, and investments in various federal and state tax credits. Busey’s effective tax rate for the full year 2024 was 25.8%. In the second quarter of 2024, Busey recorded a one-time deferred tax valuation adjustment of $1.4 million resulting from a change to our Illinois apportionment rate due to recently enacted regulations. These newly enacted regulations are expected to lower our tax obligation in future periods. Excluding the impact of the one-time deferred tax valuation adjustment, our effective tax rate for the full year 2024 would have been 24.9%.

    Effective tax rates were higher in 2024, compared to 2023, due to the adoption of ASU 2023-02 in January 2024. Upon adoption of ASU 2023-02 Busey elected to use the proportional amortization method of accounting for equity investments made primarily for the purpose of receiving income tax credits. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense as opposed to being presented on a gross basis on the income statement as a component of noninterest expense and income tax expense.

    CAPITAL STRENGTH

    Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. On January 31, 2025, Busey will pay a cash dividend of $0.25 per common share to stockholders of record as of January 24, 2025, which represents a 4.2% increase from the previous quarterly dividend of $0.24 per share. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

    As of December 31, 2024, Busey continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. Busey’s Common Equity Tier 1 ratio is estimated4 to be 14.10% at December 31, 2024, compared to 13.78% at September 30, 2024, and 13.09% at December 31, 2023. Our Total Capital to Risk Weighted Assets ratio is estimated4 to be 18.53% at December 31, 2024, compared to 18.19% at September 30, 2024, and 17.44% at December 31, 2023.

    Busey’s tangible common equity1 was $1.02 billion at December 31, 2024, compared to $1.04 billion at September 30, 2024, and $925.0 million at December 31, 2023. Tangible common equity1 represented 8.76% of tangible assets at December 31, 2024, compared to 8.96% at September 30, 2024, and 7.75% at December 31, 2023. Busey’s tangible book value per common share1 was $17.88 at December 31, 2024, compared to $18.19 at September 30, 2024, and $16.62 at December 31, 2023, reflecting a 7.6% year-over-year increase. The ratios of tangible common equity to tangible assets1 and tangible book value per common share have been impacted by the fair value adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of stockholder’s equity.

    FOURTH QUARTER EARNINGS INVESTOR PRESENTATION

    For additional information on Busey’s financial condition and operating results, please refer to the Q4 2024 Earnings Investor Presentation furnished via Form 8-K on January 28, 2025, in connection with this earnings release.

    CORPORATE PROFILE

    As of December 31, 2024, First Busey Corporation (Nasdaq: BUSE) was an $12.05 billion financial holding company headquartered in Champaign, Illinois.

    Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $12.01 billion as of December 31, 2024, and is headquartered in Champaign, Illinois. Busey Bank currently has 62 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, three in Southwest Florida, and one in Indianapolis. More information about Busey Bank can be found at busey.com.

    Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $13.83 billion as of December 31, 2024. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

    Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

    For the first time, Busey was named among the World’s Best Banks for 2024 by Forbes, earning a spot on the list among 68 U.S. banks and 403 banks worldwide. Additionally, Busey Bank was honored to be named among America’s Best Banks by Forbes magazine for the third consecutive year. Ranked 40th overall in 2024, Busey was the second-ranked bank headquartered in Illinois of the six banks that made this year’s list and the highest-ranked bank of those with more than $10 billion in assets. Busey is humbled to be named among the 2024 Best Banks to Work For by American Banker, the 2024 Best Places to Work in Money Management by Pensions and Investments, the 2024 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2024 Best Places to Work in Indiana by the Indiana Chamber of Commerce, and the 2024 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized globally, nationally and locally for our engaged culture of integrity and commitment to community development.

    For more information about us, visit busey.com.

    Category: Financial
    Source: First Busey Corporation

    Contacts:

    Jeffrey D. Jones, Chief Financial Officer
    217-365-4130

    NON-GAAP FINANCIAL INFORMATION

    This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring noninterest items and provide additional perspective on Busey’s performance over time.

    Below is a reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, average tangible common equity, return on average tangible common equity, adjusted return on average tangible common equity; net income and net security gains and losses in the case of further adjusted net income and further adjusted diluted earnings per share; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest income, adjusted noninterest expense, noninterest expense excluding non-operating adjustments, adjusted core expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; net interest income, total noninterest income, net securities gains and losses, and net gains and losses on the sale of mortgage servicing rights in the case of operating revenue and adjusted noninterest income to operating revenue; total assets and goodwill and other intangible assets in the case of tangible assets; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; and total deposits in the case of core deposits and core deposits to total deposits.

    These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
     
    Pre-Provision Net Revenue and Related Measures
                         
        Three Months Ended   Years Ended
    (dollars in thousands)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    Net interest income (GAAP)   $ 81,578     $ 82,647     $ 77,345     $ 322,611     $ 320,621  
    Total noninterest income (GAAP)     35,221       35,845       31,304       139,682       121,214  
    Net security (gains) losses (GAAP)     196       (822 )     (761 )     6,102       2,199  
    Total noninterest expense (GAAP)     (78,167 )     (75,926 )     (74,979 )     (300,399 )     (285,532 )
    Pre-provision net revenue (Non-GAAP) [a]   38,828       41,744       32,909       167,996       158,502  
    Acquisition and restructuring expenses     3,585       1,935       4,237       8,140       4,328  
    Provision for unfunded commitments     (455 )     407       818       (1,095 )     461  
    Amortization of New Markets Tax Credits                 2,259             8,999  
    Realized (gain) loss on the sale of mortgage service rights           18             (7,724 )      
    Adjusted pre-provision net revenue (Non-GAAP) [b] $ 41,958     $ 44,104     $ 40,223     $ 167,317     $ 172,290  
                         
    Average total assets (GAAP) [c]   12,085,993       12,007,702       12,308,491       12,051,871       12,246,218  
                         
    Pre-provision net revenue to average total assets (Non-GAAP)1 [a÷c]   1.28 %     1.38 %     1.06 %     1.39 %     1.29 %
    Adjusted pre-provision net revenue to average total assets (Non-GAAP)1 [b÷c]   1.38 %     1.46 %     1.30 %     1.39 %     1.41 %

    ___________________________________________

    1. For quarterly periods, measures are annualized.
     
    Adjusted Net Income, Average Tangible Common Equity, and Related Ratios
                         
        Three Months Ended   Years Ended
    (dollars in thousands, except per share amounts)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    Net income (GAAP) [a] $ 28,105     $ 32,004     $ 25,749     $ 113,691     $ 122,565  
    Acquisition expenses:                    
    Salaries, wages, and employee benefits     247       73             1,457        
    Data processing     14       90             548        
    Professional fees, occupancy, furniture and fixtures, and other     2,208       1,772       266       4,896       357  
    Restructuring expenses:                    
    Salaries, wages, and employee benefits                 3,760       123       3,760  
    Professional fees, occupancy, furniture and fixtures, and other     1,116             211       1,116       211  
    Acquisition and restructuring expenses     3,585       1,935       4,237       8,140       4,328  
    Related tax benefit1     (965 )     (406 )     (863 )     (2,026 )     (881 )
    Adjusted net income (Non-GAAP) [b] $ 30,725     $ 33,533     $ 29,123     $ 119,805     $ 126,012  
                         
    Weighted average number of common shares outstanding, diluted (GAAP) [c]   57,934,812       57,967,848       56,333,033       57,543,001       56,256,148  
    Diluted earnings per common share (GAAP) [a÷c] $ 0.49     $ 0.55     $ 0.46     $ 1.98     $ 2.18  
    Adjusted diluted earnings per common share (Non-GAAP) [b÷c] $ 0.53     $ 0.58     $ 0.52     $ 2.08     $ 2.24  
                         
    Average total assets (GAAP) [d]   12,085,993       12,007,702       12,308,491       12,051,871       12,246,218  
    Return on average assets (GAAP)2 [a÷d]   0.93 %     1.06 %     0.83 %     0.94 %     1.00 %
    Adjusted return on average assets (Non-GAAP)2 [b÷d]   1.01 %     1.11 %     0.94 %     0.99 %     1.03 %
                         
    Average common equity (GAAP)   $ 1,396,939     $ 1,364,377     $ 1,202,417     $ 1,342,424     $ 1,197,511  
    Average goodwill and other intangible assets, net     (367,400 )     (369,720 )     (355,469 )     (366,601 )     (359,347 )
    Average tangible common equity (Non-GAAP) [e] $ 1,029,539     $ 994,657     $ 846,948     $ 975,823     $ 838,164  
                         
    Return on average tangible common equity (Non-GAAP)2 [a÷e]   10.86 %     12.80 %     12.06 %     11.65 %     14.62 %
    Adjusted return on average tangible common equity (Non-GAAP)2 [b÷e]   11.87 %     13.41 %     13.64 %     12.28 %     15.03 %

    ___________________________________________

    1. Year-to-date tax benefits were calculated by multiplying year-to-date acquisition and restructuring expenses by tax rates of 24.9% and 20.4% for the years ended December 31, 2024 and 2023, respectively. Quarterly tax benefits were calculated as the year-to-date tax benefit amounts less the sum of amounts applied to previous quarters during the year, equating to tax rates of 26.9%, 21.0%, and 20.4% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
    2. For quarterly periods, measures are annualized.
    Further Adjusted Net Income and Related Measures
                         
        Three Months Ended   Years Ended
    (dollars in thousands, except per share amounts)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    Adjusted net income (Non-GAAP)1   $ 30,725     $ 33,533     $ 29,123     $ 119,805     $ 126,012  
    Further non-GAAP adjustments:                    
    Net securities (gains) losses     196       (822 )     (761 )     6,102       2,199  
    Realized net (gains) losses on the sale of mortgage servicing rights           18             (7,724 )      
    Tax effect for further non-GAAP adjustments2     (49 )     199       171       419       (448 )
    Tax effected further non-GAAP adjustments3     147       (605 )     (590 )     (1,203 )     1,751  
    Further adjusted net income (Non-GAAP)3 [a] $ 30,872     $ 32,928     $ 28,533     $ 118,602     $ 127,763  
    One-time deferred tax valuation adjustment4                       1,446        
    Further adjusted net income, excluding one-time deferred tax valuation adjustment (Non-GAAP)3 [b] $ 30,872     $ 32,928     $ 28,533     $ 120,048     $ 127,763  
                         
    Weighted average number of common shares outstanding, diluted [c]   57,934,812       57,967,848       56,333,033       57,543,001       56,256,148  
                         
    Further adjusted diluted earnings per common share (Non-GAAP)3 [a÷c] $ 0.53     $ 0.57     $ 0.51     $ 2.06     $ 2.27  
    Further adjusted diluted earnings per common share, excluding one-time deferred tax valuation adjustment (Non-GAAP)3 [b÷c] $ 0.53     $ 0.57     $ 0.51     $ 2.09     $ 2.27  

    ___________________________________________

    1. Adjusted net income is a non-GAAP measure. See the previous table for a reconciliation to the nearest GAAP measure.
    2. Tax effects for further non-GAAP adjustments were calculated by multiplying further non-GAAP adjustments by the effective income tax rate for each period. Effective income tax rates that were used to calculate the tax effect were 24.8%, 24.8%, and 22.5% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and were 25.8% and 20.4% for the years ended December 31, 2024 and 2023, respectively.
    3. Tax-effected measure.
    4. An estimated one-time deferred tax valuation adjustment of $1.4 million resulted from a change to our Illinois apportionment rate due to recently enacted regulations.
    Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin
                         
        Three Months Ended   Years Ended
    (dollars in thousands)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    Net interest income (GAAP)   $ 81,578     $ 82,647     $ 77,345     $ 322,611     $ 320,621  
    Tax-equivalent adjustment1     446       396       501       1,693       2,173  
    Tax-equivalent net interest income (Non-GAAP) [a]   82,024       83,043       77,846       324,304       322,794  
    Purchase accounting accretion related to business combinations     (812 )     (1,338 )     (384 )     (3,166 )     (1,477 )
    Adjusted net interest income (Non-GAAP) [b] $ 81,212     $ 81,705     $ 77,462     $ 321,138     $ 321,317  
                         
    Average interest-earning assets (GAAP) [c]   11,048,350       10,942,745       11,235,326       10,999,424       11,181,010  
                         
    Net interest margin (Non-GAAP)2 [a÷c]   2.95 %     3.02 %     2.75 %     2.95 %     2.89 %
    Adjusted net interest margin (Non-GAAP)2 [b÷c]   2.92 %     2.97 %     2.74 %     2.92 %     2.87 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    2. For quarterly periods, measures are annualized.
    Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Adjusted Core Expense, and Efficiency Ratios
                         
        Three Months Ended   Years Ended
    (dollars in thousands)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    Net interest income (GAAP) [a] $ 81,578     $ 82,647     $ 77,345     $ 322,611     $ 320,621  
    Tax-equivalent adjustment1     446       396       501       1,693       2,173  
    Tax-equivalent net interest income (Non-GAAP) [b]   82,024       83,043       77,846       324,304       322,794  
                         
    Total noninterest income (GAAP)     35,221       35,845       31,304       139,682       121,214  
    Net security (gains) losses (GAAP)     196       (822 )     (761 )     6,102       2,199  
    Noninterest income excluding net securities gains and losses (Non-GAAP) [c]   35,417       35,023       30,543       145,784       123,413  
    Realized net (gains) losses on the sale of mortgage servicing rights (GAAP)           18             (7,724 )      
    Adjusted noninterest income (Non-GAAP) [d] $ 35,417     $ 35,041     $ 30,543     $ 138,060     $ 123,413  
                         
    Tax-equivalent revenue (Non-GAAP) [e = b+c] $ 117,441     $ 118,066     $ 108,389     $ 470,088     $ 446,207  
    Adjusted tax-equivalent revenue (Non-GAAP) [f = b+d]   117,441       118,084       108,389       462,364       446,207  
    Operating revenue (Non-GAAP) [g = a+d]   116,995       117,688       107,888       460,671       444,034  
                         
    Adjusted noninterest income to operating revenue (Non-GAAP) [d÷g]   30.27 %     29.77 %     28.31 %     29.97 %     27.79 %
                         
    Total noninterest expense (GAAP)   $ 78,167     $ 75,926     $ 74,979     $ 300,399     $ 285,532  
    Amortization of intangible assets (GAAP) [h]   (2,471 )     (2,548 )     (2,479 )     (10,057 )     (10,432 )
    Noninterest expense excluding amortization of intangible assets (Non-GAAP) [i]   75,696       73,378       72,500       290,342       275,100  
    Non-operating adjustments:                    
    Salaries, wages, and employee benefits     (247 )     (73 )     (3,760 )     (1,580 )     (3,760 )
    Data processing     (14 )     (90 )           (548 )      
    Professional fees, occupancy, furniture and fixtures, and other     (3,324 )     (1,772 )     (477 )     (6,012 )     (568 )
    Adjusted noninterest expense (Non-GAAP) [j]   72,111       71,443       68,263       282,202       270,772  
    Provision for unfunded commitments     455       (407 )     (818 )     1,095       (461 )
    Amortization of New Markets Tax Credits                 (2,259 )           (8,999 )
    Adjusted core expense (Non-GAAP) [k] $ 72,566     $ 71,036     $ 65,186     $ 283,297     $ 261,312  
                         
    Noninterest expense, excluding non-operating adjustments (Non-GAAP) [j-h] $ 74,582     $ 73,991     $ 70,742     $ 292,259     $ 281,204  
                         
    Efficiency ratio (Non-GAAP) [i÷e]   64.45 %     62.15 %     66.89 %     61.76 %     61.65 %
    Adjusted efficiency ratio (Non-GAAP) [j÷f]   61.40 %     60.50 %     62.98 %     61.03 %     60.68 %
    Adjusted core efficiency ratio (Non-GAAP) [k÷f]   61.79 %     60.16 %     60.14 %     61.27 %     58.56 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    Tangible Book Value and Tangible Book Value Per Common Share
                 
        As of
    (dollars in thousands, except per share amounts)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
    Total stockholders’ equity (GAAP)   $ 1,383,269     $ 1,402,884     $ 1,271,981  
    Goodwill and other intangible assets, net (GAAP)     (365,975 )     (368,249 )     (353,864 )
    Tangible book value (Non-GAAP) [a] $ 1,017,294     $ 1,034,635     $ 918,117  
                 
    Ending number of common shares outstanding (GAAP) [b]   56,895,981       56,872,241       55,244,119  
                 
    Tangible book value per common share (Non-GAAP) [a÷b] $ 17.88     $ 18.19     $ 16.62  
    Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets
                 
        As of
    (dollars in thousands)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
    Total assets (GAAP)   $ 12,046,722     $ 11,986,839     $ 12,283,415  
    Goodwill and other intangible assets, net (GAAP)     (365,975 )     (368,249 )     (353,864 )
    Tax effect of other intangible assets1     6,379       7,178       6,888  
    Tangible assets (Non-GAAP)2 [a] $ 11,687,126     $ 11,625,768     $ 11,936,439  
                 
    Total stockholders’ equity (GAAP)   $ 1,383,269     $ 1,402,884     $ 1,271,981  
    Goodwill and other intangible assets, net (GAAP)     (365,975 )     (368,249 )     (353,864 )
    Tax effect of other intangible assets1     6,379       7,178       6,888  
    Tangible common equity (Non-GAAP)2 [b] $ 1,023,673     $ 1,041,813     $ 925,005  
                 
    Tangible common equity to tangible assets (Non-GAAP)2 [b÷a]   8.76 %     8.96 %     7.75 %

    ___________________________________________

    1. Net of estimated deferred tax liability, calculated using an estimated tax rate of 26.73% as of December 31, 2024, and 28% as of September 30, 2024, and December 31, 2023.
    2. Tax-effected measure.
    Core Deposits and Related Ratios
                 
        As of
    (dollars in thousands)   December 31,
    2024
      September 30,
    2024
      December 31,
    2023
    Portfolio loans (GAAP) [a] $ 7,697,087     $ 7,809,097     $ 7,651,034  
                 
    Total deposits (GAAP) [b] $ 9,982,490     $ 9,943,241     $ 10,291,156  
    Brokered deposits, excluding brokered time deposits of $250,000 or more     (13,090 )     (13,089 )     (6,001 )
    Time deposits of $250,000 or more     (334,503 )     (338,808 )     (386,286 )
    Core deposits (Non-GAAP) [c] $ 9,634,897     $ 9,591,344     $ 9,898,869  
                 
    RATIOS            
    Core deposits to total deposits (Non-GAAP) [c÷b]   96.52 %     96.46 %     96.19 %
    Portfolio loans to core deposits (Non-GAAP) [a÷c]   79.89 %     81.42 %     77.29 %
                             

    FORWARD-LOOKING STATEMENTS

    This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

    A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) risks related to the proposed transaction with CrossFirst, including (i) the possibility that the proposed transaction will not close when expected or at all because conditions to the closing are not satisfied on a timely basis or at all; (ii) the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Busey and CrossFirst do business; (iii) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (iv) diversion of management’s attention from ongoing business operations and opportunities; (v) the possibility that Busey may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all, and to successfully integrate CrossFirst’s operations with those of Busey or that such integration may be more difficult, time consuming or costly than expected; (vi) revenues following the proposed transaction may be lower than expected; and (vii) stockholder litigation that could prevent or delay the closing of the proposed transaction or otherwise negatively impact our business and operations; (2) the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (3) effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations, and tax regulations; (4) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (5) changes in state and federal laws, regulations, and governmental policies concerning Busey’s general business (including changes in response to the failures of other banks or as a result changes in policies implemented by the new presidential administration); (6) changes in accounting policies and practices; (7) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (8) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (9) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (10) the loss of key executives or associates; (11) changes in consumer spending; (12) unexpected outcomes of existing or new litigation, investigations, or inquiries involving Busey (including with respect to Busey’s Illinois franchise taxes); (13) fluctuations in the value of securities held in Busey’s securities portfolio; (14) concentrations within Busey’s loan portfolio (including commercial real estate loans), large loans to certain borrowers, and large deposits from certain clients; (15) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (16) the level of non-performing assets on Busey’s balance sheets; (17) interruptions involving information technology and communications systems or third-party servicers; (18) breaches or failures of information security controls or cybersecurity-related incidents; and (19) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

    Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

    END NOTES

    1 Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see Non-GAAP Financial Information.”
    2 Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250 thousand FDIC insurance limit, less intercompany accounts and collateralized accounts (including preferred deposits).
    3 Central Business District areas within Busey’s footprint include downtown St. Louis, downtown Indianapolis, and downtown Chicago.
    4 Capital amounts and ratios for the fourth quarter of 2024 are not yet finalized and are subject to change.
    5 On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
    6 The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    Performance Highlights for the Fourth Quarter of 2024

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

    Declaration of Quarterly Dividend

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

    Annual Meeting Date Set

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

    Results of Operations

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

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

    Net Interest Income and Net Interest Margin

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

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

    Provision for Credit Losses on Loans

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

    Non-Interest Income and Expense

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

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

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

    Income Tax Expense

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

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

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

    Net Interest Income and Net Interest Margin

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

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

    Provision for Credit Losses on Loans

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

    Non-Interest Income and Expense

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

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

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

    Income Tax Expense

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

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

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

    Net Interest Income and Net Interest Margin

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

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

    Provision for Credit Losses on Loans

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

    Non-Interest Income and Expense

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

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

    Income Tax Expense

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

    Asset Quality

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

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

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

        December 31, 2024   September 30, 2024   December 31, 2023  
        Number
    of
    Loans
      Principal
    Balance
    of Loans
      Number
    of
    Loans
      Principal
    Balance
    of Loans
      Number
    of
    Loans
      Principal
    Balance
    of Loans
     
        (Dollars in thousands)
    Accruing past due loans:                          
    30 to 59 days past due:                          
    Commercial mortgage loans   7   $ 8,538     2   $ 430     1   $ 825    
    Multi-family mortgage loans                   1     3,815    
    Construction loans                          
    Residential mortgage loans   22     6,388     23     5,020     13     3,429    
    Total mortgage loans   29     14,926     25     5,450     15     8,069    
    Commercial loans   23     4,248     14     1,952     6     998    
    Consumer loans   47     3,152     53     4,073     31     875    
    Total 30 to 59 days past due   99   $ 22,326     92   $ 11,475     52   $ 9,942    
                               
    60 to 89 days past due:                          
    Commercial mortgage loans   4   $ 3,954     1   $ 641       $    
    Multi-family mortgage loans                   1     1,635    
    Construction loans                          
    Residential mortgage loans   17     5,049     11     1,991     8     1,208    
    Total mortgage loans   21     9,003     12     2,632     9     2,843    
    Commercial loans   9     2,377     9     1,240     3     198    
    Consumer loans   15     856     10     606     5     275    
    Total 60 to 89 days past due   45     12,236     31     4,478     17     3,316    
    Total accruing past due loans   144   $ 34,562     123   $ 15,953     69   $ 13,258    
                               
    Non-accrual:                          
    Commercial mortgage loans   17   $ 20,883     17   $ 13,969     7   $ 5,151    
    Multi-family mortgage loans   6     7,498     6     7,578     1     744    
    Construction loans   2     13,246     2     13,151     1     771    
    Residential mortgage loans   23     4,535     24     5,211     7     853    
    Total mortgage loans   48     46,162     49     39,909     16     7,519    
    Commercial loans   65     24,243     69     48,592     26     41,487    
    Consumer loans   23     1,656     32     1,433     10     633    
    Total non-accrual loans   136   $ 72,061     150   $ 89,934     52   $ 49,639    
                               
    Non-performing loans to total loans         0.39 %         0.47 %         0.46 %  
    Allowance for loan losses to total non-performing loans         268.43 %         217.09 %         215.96 %  
    Allowance for loan losses to total loans         1.04 %         1.02 %         0.99 %  
     

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

    Balance Sheet Summary

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

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

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

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

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

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

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

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

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

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

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

    About the Company

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

    Post Earnings Conference Call

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

    Forward Looking Statements

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

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

    Footnotes

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

    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in Thousands, except share data) (Unaudited)
     
      At or for the
    Three months ended
      At or for the
    Year ended
      December 31,   September 30,   December 31,   December 31,   December 31,
        2024       2024       2023       2024       2023  
    Statement of Income                  
    Net interest income $ 181,737     $ 183,701     $ 95,788     $ 600,614     $ 399,454  
    Provision for credit losses   8,880       9,299       (863 )     87,564       28,168  
    Non-interest income   24,175       26,855       18,968       94,113       79,829  
    Non-interest expense   134,323       136,002       75,851       457,548       275,336  
    Income before income tax expense   62,709       65,255       39,768       149,615       175,779  
    Net income   48,524       46,405       27,312       115,525       128,398  
    Diluted earnings per share $ 0.37     $ 0.36     $ 0.36     $ 1.05     $ 1.71  
    Interest rate spread   2.63 %     2.65 %     2.33 %     2.63 %     2.63 %
    Net interest margin   3.28 %     3.31 %     2.92 %     3.26 %     3.16 %
                       
    Profitability                  
    Annualized return on average assets   0.81 %     0.76 %     0.77 %     0.57 %     0.92 %
    Annualized adjusted return on average assets (1)   1.05 %     0.95 %     0.83 %     0.78 %     0.97 %
    Annualized return on average equity   7.36 %     6.94 %     6.60 %     5.07 %     7.81 %
    Annualized adjusted return on average equity (1)   9.53 %     8.62 %     7.10 %     6.95 %     8.22 %
    Annualized return on average tangible equity (3)   12.21 %     12.06 %     9.32 %     8.58 %     11.01 %
    Annualized adjusted return on average tangible equity (1)   15.39 %     14.53 %     9.99 %     11.29 %     11.54 %
    Annualized adjusted non-interest expense to average assets (4)   1.90 %     1.98 %     1.98 %     1.97 %     1.90 %
    Efficiency ratio (4)   55.43 %     57.20 %     61.32 %     57.67 %     55.19 %
                       
    Asset Quality                  
    Non-accrual loans     $ 89,934         $ 72,061     $ 49,639  
    90+ and still accruing                        
    Non-performing loans       88,061           72,061       49,639  
    Foreclosed assets       9,801           9,473       11,651  
    Non-performing assets       97,862           81,534       61,290  
    Non-performing loans to total loans       0.47 %         0.39 %     0.46 %
    Non-performing assets to total assets       0.41 %         0.34 %     0.43 %
    Allowance for loan losses     $ 191,175         $ 193,432     $ 107,200  
    Allowance for loan losses to total non-performing loans       217.09 %         268.43 %     215.96 %
    Allowance for loan losses to total loans       1.02 %         1.04 %     0.99 %
    Net loan charge-offs $ 5,493       6,756     $ 4,010     $ 14,560     $ 8,129  
    Annualized net loan charge offs to average total loans   0.12 %     0.14 %     0.16 %     0.09 %     0.08 %
                       
    Average Balance Sheet Data                  
    Assets $ 23,908,514     $ 24,248,038     $ 14,114,626     $ 20,382,148     $ 13,915,467  
    Loans, net   18,487,443       18,531,939       10,660,201       15,600,431       10,367,620  
    Earning assets   21,760,458       21,809,226       12,823,541       18,403,149       12,637,224  
    Savings and demand deposits   15,581,608       15,394,715       9,210,315       13,103,803       9,358,290  
    Borrowings   1,711,806       2,125,149       1,873,822       1,983,674       1,636,572  
    Interest-bearing liabilities   17,093,382       17,304,569       10,020,726       14,596,325       9,671,794  
    Stockholders’ equity   2,624,019       2,660,470       1,642,854       2,279,525       1,644,529  
    Average yield on interest-earning assets   5.66 %     5.84 %     5.04 %     5.68 %     4.87 %
    Average cost of interest-bearing liabilities   3.03 %     3.19 %     2.71 %     3.05 %     2.24 %
     

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

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

    (1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
        2024   2024   2023   2024   2023
    Net Income   $ 48,524     $ 46,405     $ 27,312     $ 115,525     $ 128,398  
    Merger-related transaction costs     20,184       15,567       2,477       56,867       7,826  
    Less: income tax expense     (5,819 )     (4,306 )     (465 )     (14,010 )     (1,480 )
    Annualized adjusted net income   $ 62,889     $ 57,666     $ 29,324     $ 158,382     $ 134,744  
    Less: Amortization of Intangibles (net of tax)   $ 6,649     $ 8,551     $ 504     $ 20,226     $ 2,064  
    Annualized adjusted net income for annualized adjusted return on average tangible equity   $ 69,538     $ 66,216     $ 29,828     $ 178,607     $ 136,808  
                         
    Annualized Adjusted Return on Average Assets     1.05 %     0.95 %     0.83 %     0.78 %     0.97 %
    Annualized Adjusted Return on Average Equity     9.53 %     8.62 %     7.10 %     6.95 %     8.22 %
    Annualized Adjusted Return on Average Tangible Equity     15.39 %     14.53 %     9.99 %     11.29 %     11.54 %
                         
    (2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Net income   $ 48,524     $ 46,405     $ 27,312     $ 115,525     $ 128,398  
    Adjustments to net income:                    
    Provision charge (benefit) for credit losses     8,880       9,299       (863 )     87,564       28,168  
    Net loss on Lakeland bond sale                       2,839        
    Merger-related transaction costs     20,184       15,567       2,477       56,867       7,826  
    Contingent litigation reserves                 3,000             3,000  
    Income tax expense     14,185       18,850       12,456       34,090       47,381  
    Adjusted PTPP income   $ 91,773     $ 90,121     $ 44,382     $ 296,885     $ 214,773  
                         
    Annualized Adjusted PTPP income   $ 365,097     $ 358,525     $ 176,081     $ 296,885     $ 214,773  
    Average assets   $ 23,908,514     $ 24,248,038     $ 14,114,626     $ 20,382,148     $ 13,915,467  
    Average equity   $ 2,624,019     $ 2,660,470     $ 1,642,854     $ 2,279,525     $ 1,644,529  
    Average tangible equity   $ 1,797,994     $ 1,813,327     $ 1,184,444     $ 1,581,339     $ 1,185,026  
                         
    Annualized Adjusted PTPP return on average assets     1.53 %     1.48 %     1.25 %     1.46 %     1.54 %
    Annualized PTPP return on average equity     13.91 %     13.48 %     10.72 %     13.02 %     13.06 %
    Annualized PTPP return on average tangible equity     20.31 %     19.77 %     14.87 %     18.77 %     18.12 %
                         
    (3) Annualized Return on Average Tangible Equity  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Total average stockholders’ equity   $ 2,624,019     $ 2,660,470     $ 1,642,854     $ 2,279,525     $ 1,644,529  
    Less: total average intangible assets     826,025       847,143       458,410       698,186       459,503  
    Total average tangible stockholders’ equity   $ 1,797,994     $ 1,813,327     $ 1,184,444     $ 1,581,339     $ 1,185,026  
                         
    Net income   $ 48,524     $ 46,405     $ 27,312     $ 115,525     $ 128,398  
    Less: Amortization of Intangibles, net of tax     6,649       8,551       504       20,226       2,064  
    Total net income (loss)   $ 55,173     $ 54,956     $ 27,816     $ 135,751     $ 130,462  
                         
    Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)     12.21 %     12.06 %     9.32 %     8.58 %     11.01 %
                         
    (4) Annualized Adjusted Non-Interest Expense to Average Assets  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Reported non-interest expense   $ 134,323     $ 136,002     $ 75,851     $ 457,548     $ 275,336  
    Adjustments to non-interest expense:                    
    Merger-related transaction costs     20,184       15,567       2,477       56,867       7,826  
    Contingent litigation reserves                 3,000             3,000  
    Adjusted non-interest expense   $ 114,139     $ 120,435     $ 70,374     $ 400,681     $ 264,510  
                         
    Annualized adjusted non-interest expense   $ 454,075     $ 479,122     $ 279,201     $ 400,681     $ 264,510  
    Average assets   $ 23,908,514     $ 24,248,038     $ 14,114,626     $ 20,382,148     $ 13,915,467  
    Annualized adjusted non-interest expense/average assets     1.90 %     1.98 %     1.98 %     1.97 %     1.90 %
                         
    (5) Efficiency Ratio Calculation  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Net interest income   $ 181,737     $ 183,701     $ 95,788     $ 600,614     $ 399,454  
    Non-interest income     24,175       26,855       18,968       94,113       79,829  
    Adjustments to non-interest income:                    
    Net loss (gain) on securities transactions     14       (2 )     7       2,986       (30 )
    Adjusted non-interest income     24,189       26,853       18,975       97,099       79,799  
    Total income   $ 205,912     $ 210,554     $ 114,756     $ 694,727     $ 479,283  
                         
    Adjusted non-interest expense   $ 114,139     $ 120,435     $ 70,374     $ 400,681     $ 264,510  
                         
    Efficiency ratio (adjusted non-interest expense/income)     55.43 %     57.20 %     61.32 %     57.67 %     55.19 %
                         
    (6) Book and Tangible Book Value per Share  
                    December 31,   December 31,
                      2024       2023  
    Total stockholders’ equity               $ 2,601,207     $ 1,690,596  
    Less: total intangible assets                 819,230       457,942  
    Total tangible stockholders’ equity               $ 1,781,977     $ 1,232,654  
                         
    Shares outstanding                 130,489,493       75,537,186  
                         
    Book value per share (total stockholders’ equity/shares outstanding)               $ 19.93     $ 22.38  
    Tangible book value per share (total tangible stockholders’ equity/shares outstanding)               $ 13.66     $ 16.32  
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Financial Condition
    December 31, 2024 (Unaudited) and December 31, 2023
    (Dollars in Thousands)
           
    Assets December 31, 2024   December 31, 2023
    Cash and due from banks $ 166,914     $ 180,241  
    Short-term investments   25       14  
    Total cash and cash equivalents   166,939       180,255  
    Available for sale debt securities, at fair value   2,768,915       1,690,112  
    Held to maturity debt securities, (net of $14,000 allowance as of December 31, 2024 (unaudited) and $31,000 allowance as of December 31, 2023)   327,623       363,080  
    Equity securities, at fair value   19,762       1,270  
    Federal Home Loan Bank stock   112,115       79,217  
    Loans held for sale   162,453       1,785  
    Loans held for investment   18,659,370       10,871,916  
    Less allowance for credit losses   193,432       107,200  
    Net loans   18,628,391       10,766,501  
    Foreclosed assets, net   9,473       11,651  
    Banking premises and equipment, net   119,622       70,998  
    Accrued interest receivable   91,160       58,966  
    Intangible assets   819,230       457,942  
    Bank-owned life insurance   405,893       243,050  
    Other assets   582,702       287,768  
    Total assets $ 24,051,825     $ 14,210,810  
           
    Liabilities and Stockholders’ Equity      
    Deposits:      
    Demand deposits $ 13,775,991     $ 8,020,889  
    Savings deposits   1,679,667       1,175,683  
    Certificates of deposit of $250,000 or more   789,342       218,549  
    Other time deposits   2,378,813       877,393  
    Total deposits   18,623,813       10,292,514  
    Mortgage escrow deposits   42,247       36,838  
    Borrowed funds   2,020,435       1,970,033  
    Subordinated debentures   401,608       10,695  
    Other liabilities   362,515       210,134  
    Total liabilities   21,450,618       12,520,214  
           
    Stockholders’ equity:      
    Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued          
    Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,489,493 shares outstanding as of December 31, 2024 and 75,537,186 outstanding as of December 31, 2023.   1,376       832  
    Additional paid-in capital   1,834,495       989,058  
    Retained earnings   989,111       974,542  
    Accumulated other comprehensive loss   (135,355 )     (141,115 )
    Treasury stock   (88,420 )     (127,825 )
    Unallocated common stock held by the Employee Stock Ownership Plan         (4,896 )
    Common Stock acquired by the Directors’ Deferred Fee Plan         (2,694 )
    Deferred Compensation – Directors’ Deferred Fee Plan         2,694  
    Total stockholders’ equity   2,601,207       1,690,596  
    Total liabilities and stockholders’ equity $ 24,051,825     $ 14,210,810  
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Income
    Three months ended December 31, 2024, September 30, 2024 (Unaudited) and December 31, 2023,
    and year ended December 31, 2024 (Unaudited) and 2023
    (Dollars in Thousands, except per share data)
                       
      Three Months Ended   Year Ended
      December 31,   September 30,   December 31,   December 31,   December 31,
        2024       2024     2023       2024       2023  
    Interest and dividend income:                  
    Real estate secured loans $ 194,236     $ 197,857   $ 109,112     $ 655,868     $ 408,942  
    Commercial loans   75,978       81,183     34,939       251,793       128,854  
    Consumer loans   10,815       12,947     5,020       36,635       18,439  
    Available for sale debt securities, equity securities and Federal Home Loan Bank stock   27,197       25,974     12,042       85,895       46,790  
    Held to maturity debt securities   2,125       2,136     2,303       8,885       9,362  
    Deposits, federal funds sold and other short-term investments   1,596       2,425     755       7,062       3,433  
    Total interest income   311,947       322,522     164,171       1,046,138       615,820  
                       
    Interest expense:                  
    Deposits   105,922       110,009     50,579       349,523       159,459  
    Borrowed funds   15,652       19,923     17,527       73,523       55,856  
    Subordinated debt   8,636       8,889     277       22,478       1,051  
    Total interest expense   130,210       138,821     68,383       445,524       216,366  
    Net interest income   181,737       183,701     95,788       600,614       399,454  
    Provision charge (benefit) for credit losses   8,880       9,299     (863 )     87,564       28,168  
    Net interest income after provision for credit losses   172,857       174,402     96,651       513,050       371,286  
                       
    Non-interest income:                  
    Fees   9,687       9,816     6,102       34,114       24,396  
    Wealth management income   7,655       7,620     6,843       30,533       27,669  
    Insurance agency income   3,289       3,631     2,759       16,201       13,934  
    Bank-owned life insurance   2,261       4,308     1,644       11,709       6,482  
    Net (loss) gain on securities transactions   (14 )     2     (7 )     (2,986 )     30  
    Other income   1,297       1,478     1,627       4,542       7,318  
    Total non-interest income   24,175       26,855     18,968       94,113       79,829  
                       
    Non-interest expense:                  
    Compensation and employee benefits   59,937       63,468     38,773       218,341       148,497  
    Net occupancy expense   12,562       12,790     7,797       45,014       32,271  
    Data processing expense   9,881       10,481     6,457       35,579       22,993  
    FDIC Insurance   3,411       4,180     2,890       12,964       8,578  
    Amortization of intangibles   9,511       12,231     721       28,931       2,952  
    Advertising and promotion expense   1,485       1,524     1,100       5,146       4,822  
    Merger-related expenses   20,184       15,567     2,477       56,867       7,826  
    Other operating expenses   17,352       15,761     15,636       54,706       47,397  
    Total non-interest expense   134,323       136,002     75,851       457,548       275,336  
    Income before income tax expense   62,709       65,255     39,768       149,615       175,779  
    Income tax expense   14,185       18,850     12,456       34,090       47,381  
    Net income $ 48,524     $ 46,405   $ 27,312     $ 115,525     $ 128,398  
                       
    Basic earnings per share $ 0.37     $ 0.36   $ 0.36     $ 1.05     $ 1.72  
    Average basic shares outstanding   130,067,244       129,941,845     74,995,705       109,668,911       74,844,489  
                       
    Diluted earnings per share $ 0.37     $ 0.36   $ 0.36     $ 1.05     $ 1.71  
    Average diluted shares outstanding   130,163,872       130,004,870     75,041,545       109,712,732       74,873,256  
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Quarterly Average Balances
    (Dollars in Thousands) (Unaudited)
     
      December 31, 2024   September 30, 2024   December 31, 2023
      Average Balance   Interest   Average
    Yield/Cost
      Average Balance   Interest   Average
    Yield/Cost
      Average Balance   Interest   Average
    Yield/Cost
    Interest-Earning Assets:                                  
    Deposits $ 117,998   $ 1,596   5.38 %   $ 179,313   $ 2,425   5.38 %   $ 54,998   $ 745   5.37 %
    Federal funds sold and other short-term investments         %           %     838     10   4.39 %
    Available for sale debt securities   2,720,065     25,063   3.69 %     2,644,262     24,884   3.72 %     1,647,906     9,858   2.39 %
    Held to maturity debt securities, net (1)   328,147     2,125   2.59 %     342,217     2,136   2.50 %     364,433     2,303   2.53 %
    Equity securities, at fair value   19,920       %     19,654       %     1,016       %
    Federal Home Loan Bank stock   86,885     2,134   9.82 %     91,841     1,090   4.75 %     94,149     2,184   9.28 %
    Net loans: (2)                                  
    Total mortgage loans   13,287,942     194,236   5.75 %     13,363,265     197,857   5.83 %     8,028,300     109,112   5.34 %
    Total commercial loans   4,587,048     75,978   6.54 %     4,546,088     81,183   7.05 %     2,329,430     34,939   5.90 %
    Total consumer loans   612,453     10,815   7.02 %     622,586     12,947   8.27 %     302,471     5,020   6.58 %
    Total net loans   18,487,443     281,029   5.99 %     18,531,939     291,987   6.21 %     10,660,201     149,071   5.50 %
    Total interest-earning assets $ 21,760,458   $ 311,947   5.66 %   $ 21,809,226   $ 322,522   5.84 %   $ 12,823,541   $ 164,171   5.04 %
                                       
    Non-Interest Earning Assets:                                  
    Cash and due from banks   159,151             341,505             111,610        
    Other assets   1,988,905             2,097,307             1,179,475        
    Total assets $ 23,908,514           $ 24,248,038           $ 14,114,626        
                                       
    Interest-Bearing Liabilities:                                  
    Demand deposits $ 10,115,827   $ 71,265   2.80 %   $ 9,942,053   $ 74,864   3.00 %   $ 5,856,916   $ 39,648   2.69 %
    Savings deposits   1,677,725     968   0.23 %     1,711,502     1006   0.23 %     1,183,857     602   0.20 %
    Time deposits   3,187,172     33,689   4.21 %     3,112,598     34,139   4.36 %     1,095,468     10,329   3.74 %
    Total Deposits   14,980,724     105,922   2.81 %     14,766,153     110,009   2.96 %     8,136,241     50,579   2.47 %
    Borrowed funds   1,711,806     15,652   3.64 %     2,125,149     19,923   3.73 %     1,873,822     17,527   3.71 %
    Subordinated debentures   400,852     8,636   8.57 %     413,267     8,889   8.56 %     10,663     277   10.27 %
    Total interest-bearing liabilities   17,093,382     130,210   3.03 %     17,304,569     138,821   3.19 %     10,020,726     68,383   2.71 %
                                       
    Non-Interest Bearing Liabilities:                                  
    Non-interest bearing deposits   3,788,056             3,741,160             2,169,542        
    Other non-interest bearing liabilities   403,057             541,839             281,504        
    Total non-interest bearing liabilities   4,191,113             4,282,999             2,451,046        
    Total liabilities   21,284,495             21,587,568             12,471,772        
    Stockholders’ equity   2,624,019             2,660,470             1,642,854        
    Total liabilities and stockholders’ equity $ 23,908,514           $ 24,248,038           $ 14,114,626        
                                       
    Net interest income     $ 181,737           $ 183,701           $ 95,788    
    Net interest rate spread         2.63 %           2.65 %           2.33 %
    Net interest-earning assets $ 4,667,076           $ 4,504,657           $ 2,802,815        
    Net interest margin (3)         3.28 %           3.31 %           2.92 %
    Ratio of interest-earning assets to total interest-bearing liabilities 1.27x           1.26x           1.28x        
     
       
    (1 ) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2 ) Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
    (3 ) Annualized net interest income divided by average interest-earning assets.
         
    The following table summarizes the quarterly net interest margin for the previous five quarters.      
           
      12/31/24   9/30/24   6/30/24   3/31/24   12/31/23
      4th Qtr.   3rd Qtr.   2nd Qtr.   1st Qtr.   4th Qtr.
    Interest-Earning Assets:                  
    Securities 3.78 %   3.69 %   3.40 %   2.87 %   2.79 %
    Net loans 5.99 %   6.21 %   6.05 %   5.51 %   5.50 %
    Total interest-earning assets 5.66 %   5.84 %   5.67 %   5.06 %   5.04 %
                       
    Interest-Bearing Liabilities:                  
    Total deposits 2.81 %   2.96 %   2.84 %   2.60 %   2.47 %
    Total borrowings 3.64 %   3.73 %   3.83 %   3.60 %   3.71 %
    Total interest-bearing liabilities 3.03 %   3.19 %   3.09 %   2.80 %   2.71 %
                       
    Interest rate spread 2.63 %   2.65 %   2.58 %   2.26 %   2.33 %
    Net interest margin 3.28 %   3.31 %   3.21 %   2.87 %   2.92 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities 1.27x   1.26x   1.25x   1.28x   1.28x
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Average Year to Date Balances
    (Dollars in Thousands) (Unaudited)
                           
      December 31, 2024   December 31, 2023
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
    Interest-Earning Assets:                      
    Deposits $ 36,932   $ 7,062   5.23 %   $ 65,991   $ 3,421   5.18 %
    Federal funds sold and other short-term investments         %     255     12   4.55 %
    Available for sale debt securities   2,323,158     77,617   3.32 %     1,745,105     40,678   2.33 %
    Held to maturity debt securities, net (1)   344,903     8,885   2.58 %     375,436     9,362   2.49 %
    Equity securities, at fair value   12,367       %     1,020       %
    Federal Home Loan Bank stock   85,358     8,278   9.70 %     81,797     6,112   7.47 %
    Net loans: (2)                      
    Total mortgage loans   11,333,540     655,868   5.79 %     7,813,764     408,942   5.23 %
    Total commercial loans   3,768,388     251,793   6.68 %     2,251,175     128,854   5.72 %
    Total consumer loans   498,503     36,635   7.35 %     302,681     18,439   6.09 %
    Total net loans   15,600,431     944,296   6.05 %     10,367,620     556,235   5.37 %
    Total interest-earning assets $ 18,403,149   $ 1,046,138   5.68 %   $ 12,637,224   $ 615,820   4.87 %
                           
    Non-Interest Earning Assets:                      
    Cash and due from banks   233,829             119,232        
    Other assets   1,745,170             1,159,011        
    Total assets $ 20,382,148           $ 13,915,467        
                           
    Interest-Bearing Liabilities:                      
    Demand deposits $ 8,480,380   $ 245,874   2.90 %   $ 5,747,671   $ 125,471   2.18 %
    Savings deposits   1,502,852     3,443   0.23 %     1,282,062     2,184   0.17 %
    Time deposits   2,367,144     100,206   4.23 %     994,901     31,804   3.20 %
    Total deposits   12,350,376     349,523   2.83 %     8,024,634     159,459   1.99 %
    Borrowed funds   1,983,674     73,523   3.71 %     1,636,572     55,856   3.41 %
    Subordinated debentures   262,275     22,478   8.57 %     10,588     1,051   9.92 %
    Total interest-bearing liabilities $ 14,596,325   $ 445,524   3.05 %   $ 9,671,794   $ 216,366   2.24 %
                           
    Non-Interest Bearing Liabilities:                      
    Non-interest bearing deposits   3,120,571             2,328,557        
    Other non-interest bearing liabilities   385,727             270,587        
    Total non-interest bearing liabilities   3,506,298             2,599,144        
    Total liabilities   18,102,623             12,270,938        
    Stockholders’ equity   2,279,525             1,644,529        
    Total liabilities and stockholders’ equity $ 20,382,148           $ 13,915,467        
                           
    Net interest income     $ 600,614           $ 399,454    
    Net interest rate spread         2.63 %           2.63 %
    Net interest-earning assets $ 3,806,824           $ 2,965,430        
    Net interest margin (3)         3.26 %           3.16 %
    Ratio of interest-earning assets to total interest-bearing liabilities 1.26x           1.31x        
                           
                           
    (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
    (3) Annualized net interest income divided by average interest-earning assets.
     
    The following table summarizes the year-to-date net interest margin for the previous three years.
                 
      Year Ended  
      December 31,
    2024
      December 31,
    2023
      December 31,
    2022
     
    Interest-Earning Assets:            
    Securities 3.43 %   2.62 %   1.86 %  
    Net loans 6.05 %   5.37 %   4.26 %  
    Total interest-earning assets 5.68 %   4.87 %   3.76 %  
                 
    Interest-Bearing Liabilities:            
    Total deposits 2.83 %   1.99 %   0.47 %  
    Total borrowings 3.71 %   3.41 %   1.23 %  
    Total interest-bearing liabilities 3.05 %   2.24 %   0.54 %  
                 
    Interest rate spread 2.63 %   2.63 %   3.22 %  
    Net interest margin 3.26 %   3.16 %   3.37 %  
                 
    Ratio of interest-earning assets to interest-bearing liabilities 1.26x   1.31x   1.38x  
                 

    The MIL Network

  • MIL-OSI USA: Woman Sentenced for Fraud Scheme Involving Claims for Unnecessary Respiratory Tests Submitted with COVID-19 Tests

    Source: US State of California

    A California woman was sentenced today to nine years in prison for her role in fraudulently submitting claims to governmental and private insurance programs during the COVID‑19 pandemic for expensive respiratory pathogen panel (RPP) tests that were medically unnecessary and never ordered by health care providers.

    According to court documents, Lourdes Navarro, 66, of Glendale, and Imran Shams owned and controlled Matias Clinical Laboratory, doing business as Health Care Providers Laboratory (HCPL). Navarro and Shams conspired to obtain nasal swab specimens that enabled HCPL to test for COVID-19, as well as to obtain testing orders from physicians and other medical professionals. The specimens were collected from, among others, residents and staff at nursing homes, assisted living facilities, rehabilitation facilities, and similar types of facilities, and from students and staff at primary and secondary schools, for the purported purpose of conducting screening tests to identify and isolate individuals infected with COVID-19. However, Navarro and Shams caused HCPL to perform RPP tests on most of the specimens, even though only COVID-19 testing had been ordered and there was no medical justification for conducting RPP tests on asymptomatic individuals who needed only COVID-19 screening tests. Through HCPL, Navarro and Shams billed approximately $369 million for the RPP tests to Medicare, the Health Resources and Services Administration COVID-19 Uninsured Program, and a private health insurance company, and were reimbursed approximately $46.7 million for fraudulent claims.

    Navarro was also ordered to forfeit $11,662,939 in funds that the government had previously seized from three bank accounts. The total amount seized and forfeited from Navarro and Shams is $14,518,485. Navarro also was ordered to pay $46,735,400 in restitution.

    Navarro pleaded guilty on Oct. 5, 2023, to conspiracy to commit health care fraud and wire fraud. Shams pleaded guilty on Jan. 24, 2023, in the Central District of California to conspiracy to commit health care fraud and concealment of his exclusion from Medicare and was sentenced to 10 years in prison on Jan. 30, 2024. In addition, on May 29, 2024, Shams was sentenced to five years in prison in connection with his 2017 plea in the Eastern District of New York to conspiracy to commit money laundering, conspiracy to pay and receive kickbacks, and defrauding the United States by obstructing the lawful functions of the IRS, of which three years were ordered to run consecutive to the Central District of California sentence.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Rochelle Wong of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

    The FBI and HHS-OIG investigated the case.

    Trial Attorneys Gary A. Winters and Raymond E. Beckering III of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Maxwell Coll for the Central District of California handled the financial penalties.

    The Justice Department’s COVID-19 Fraud Enforcement Task Force marshals the resources of the department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, visit www.justice.gov/coronavirus.

    MIL OSI USA News