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  • MIL-OSI USA: WATCH: Padilla, Budget Democrats Boycott Russell Vought’s OMB Nomination Vote

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)
    After the OMB-directed federal funding freeze causes chaos, Padilla sounds alarm on Trump pick’s record of withholding federal aid

    WATCH: Padilla delivers remarks opposing Vought’s reckless nominationWASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) joined his fellow Democratic members of the Senate Budget Committee and Minority Leader Chuck Schumer (D-N.Y.) to protest the Budget Committee advancing Russell Vought’s nomination to be Director of the Office of Management and Budget (OMB) behind closed doors, despite the Trump Administration’s unprecedented attempt to freeze federal funding.
    The Monday night OMB memo paused all congressionally approved federal grants and loans, stoking widespread confusion and chaos while threatening essential services like disaster relief, health care, public safety, education, nutrition, and housing for millions of Californians.
    In his previous tenure with OMB, Vought blatantly disregarded spending laws and congressional appropriations, operating as if the President has unchecked, unilateral power to make funding decisions despite the clear language of the Constitution giving that authority to Congress. As one of the primary architects of Project 2025, Vought wrote that the OMB Director should be “aggressive in wielding the tool of apportionments on behalf of the President’s agenda,” and “defend the apportionment power against attacks from Congress.”
    His nomination poses a serious threat to Congress’ constitutional authority and to critical disaster aid for Southern California fire victims. Vought tried on numerous occasions in his previous tenure to withhold and slow the distribution of disaster relief, which was agreed to and appropriated by Congress, based on political motives. During his confirmation hearing, Vought continued to hedge on answers that he would not politicize government assistance and refused every opportunity to commit to following the law.
    Senator Padilla also spoke on the Senate floor yesterday in strong opposition to the chaotic OMB funding memo and Russell Vought’s nomination. Earlier this week, Budget Committee Democrats and Leader Schumer demanded that Chairman Lindsey Graham (R-S.C.) delay Vought’s nomination until he satisfactorily answers questions regarding his advice to the President relating to the illegal impoundment of congressionally appropriated funds through the Monday OMB directive. Padilla also questioned Vought on disaster relief funding to help Southern California recover and rebuild after the recent fires during a Senate Budget Committee nomination hearing earlier this month.
    Video of Padilla’s remarks is available here.
    A full transcript of Padilla’s remarks is available here and below:
    Thank you, Senator Luján, and I want to begin by also expressing my condolences to the victims of the crashes last night, their families. Over the coming days, we’ll hear the names, and we’ll hear the stories of those that have perished. And yes, Senator Luján, it comes at a time where we’re still grappling with the impacts of these unprecedented and devastating fires, plural, in the Los Angeles region. And I think that couldn’t underscore the stakes here any more.
    In a time of crisis, when people turn to not just local leadership, but to their federal government to be there for them, it is unconscionable that in those moments, there’s efforts to promote funding freezes, hiring freezes, and in so many ways, go back on our fundamental obligations to our constituents and to the American people.
    The past few days have been anything but business as usual. I agree: this is an attempt at a one-man government shutdown, brought to us by President Trump — an effort to block billions of dollars approved by Congress, directed by Congress, funds that would support families recovering from catastrophic wildfires, funds for law enforcement agencies that we rely on to keep our communities safe, funds to support nutrition programs for children and families that depend on us for their next meal. And you see a much longer list, just a very partial list here on the board.
    But it’s because of that real-world impact that Americans from throughout the country, they knew immediately what was at stake, and so many of them jumped into action, speaking out, writing our offices, calling our offices, to share their concerns, their questions, looking for guidance, looking for help.
    And it’s in that context that our Republican colleagues have the audacity, the nerve, to move forward with President Trump’s nominee to lead the very agency responsible for the chaos and the heartache, and not even with the courage to agree to Senator Merkley’s request to do this in a committee hearing room where we can have this conversation and vote in public.
    They’re literally in a back room, not accessible, not visible. What are they trying to hide? What are they afraid of? And so, yes, we are here in this room today because this kind of behavior cannot be business as usual. This is not the Senate. The stakes are too high. The impacts too real.
    Now, as others have said, during his previous tenure at OMB, Russell Vought tried to repeatedly politicize, withhold, and slow the distribution of federal funds, including disaster relief, including foreign aid. Through his conduct, he has demonstrated that he holds himself above the law, above the Constitution, and above the funding decisions made by Congress. Maybe that’s why President Trump likes him so much.
    But for any of my colleagues, not just Democrats, but our colleagues on the other side of the aisle too, who have worked so hard to secure funding for their constituents back home, they too should be concerned. They too should be alarmed. Consider Mr. Vought’s work from the first Trump Administration, his role in crafting Project 2025, and his arrogance during the confirmation hearing last week. It’s clear he is coming after Congress’s constitutional authority, and he intends to repeat the events of this week over and over again if he’s confirmed.
    And I say it’s “if” because there is still time. To my Republican colleagues: there is still time, you have the power to stop this if you have the courage to do so. Don’t give up that power to President Trump. Use that power for your constituents and for our country. Thank you.

    MIL OSI USA News –

  • MIL-OSI USA: Cassidy, Grassley, Heinrich Lead Reintroduction of Legislation to Combat Illegal Fentanyl

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy
    WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Chuck Grassley (R-IA), and Martin Heinrich (D-NM) led 11 colleagues in reintroducing the Halt Lethal Trafficking (HALT) Fentanyl Act. This legislation makes permanent the temporary classification of fentanyl-related substances as Schedule I of the Controlled Substances Act (CSA). Drug overdoses, largely driven by fentanyl, are the leading cause of death among young adults 18 to 45 years old. Synthetic opioids like fentanyl account for 66 percent of the total U.S. overdose deaths. The drug’s Schedule I classification is set to expire on March 31, 2025. 
    “The Biden administration’s open border was an invitation to drug cartels smuggling Chinese fentanyl into the U.S., fueling the U.S. overdose epidemic,” said Dr. Cassidy. “Law enforcement must have the tools necessary to combat this trend. We cannot let this Schedule I classification lapse.”
    “Today, roughly 150 Americans will die from fentanyl poisoning. Cartels’ fuel this crisis by marketing their poison as legitimate prescription pills. They also avoid regulation by chemically altering the drugs to create powerful fentanyl knock-offs,” said Senator Grassley. “Congress closed that loophole by temporarily classifying fentanyl related substances under Schedule 1. The HALT Fentanyl Act would make permanent fentanyl related substances’ Schedule 1 classification and ensure law enforcement has the tools they need to combat these deadly drugs.”
    “We’re losing more than 100,000 Americans each year to illicit fentanyl overdoses. I refuse to accept this reality, and that’s why I’m working to deliver tools law enforcement personnel need to keep deadly fentanyl off our streets and out of our communities,” said Senator Heinrich. “Permanently scheduling fentanyl and its analogues will help federal and local law enforcement crack down on illegal trafficking and allow prosecutors to build stronger, longer-term criminal cases. Our HALT Fentanyl Act will help stop the flow of these deadly drugs into our communities and save lives.”  
    Cassidy, Grassley, and Heinrich were joined by U.S. Senators Roger Marshall (R-KS), Todd Young (R-IN), Steve Daines (R-MT), Eric Schmitt (R-MO), Maggie Hassan (D-NH), Shelley Moore Capito (R-VW), Ruben Gallego (D-AZ), Catherine Cortez Masto (D-NV), Mike Rounds (R-SD), John Kennedy (R-LA), and Jeanne Shaheen (D-NH) in introducing the legislation.
    The legislation also removes barriers that impede the ability of researchers to conduct studies on fentanyl-related substances and allows for exemptions if such research provides evidence that it would be beneficial for specific substances to be classified differently than Schedule I, such as for medical purposes.  
    From August 2021 to August 2022, a record-breaking 107,735 Americans lost their lives to drug overdoses. The surge was primarily fueled by synthetic opioids, including illegal fentanyl, which are largely manufactured in Mexico from raw materials supplied by China. In 2022, there were over 50.6 million fentanyl-laced fake prescription pills seized by the U.S. Drug Enforcement Administration (DEA), more than doubling the amount seized in 2021. 
    Click here for a one-pager. Click here for a section-by-section.
    Background
    According to the U.S. Centers for Disease Control and Prevention (CDC), there were an estimated 107,543 drug overdose deaths in the U.S. in 2023. This was primarily fueled by synthetic opioids, including illegal fentanyl, which are largely manufactured in Mexico from raw materials supplied by China. In 2022, there were over 50.6 million fentanyl-laced fake prescription pills seized by the U.S. Drug Enforcement Administration (DEA), more than doubling the amount seized in 2021. 
    The U.S. House of Representatives passed the HALT Fentanyl Act in March 2023. 

    MIL OSI USA News –

  • MIL-OSI United Nations: Stressing Peacebuilding Commission’s Critical Role amid Rise in Conflicts Worldwide, Secretary-General Urges Increased, Innovative Funding to Support Its Work

    Source: United Nations General Assembly and Security Council

    Speakers Highlight Pact for Future’s Prioritization of Conflict Prevention, Mediation and Peacebuilding

    Amid escalating conflicts, widening geopolitical divisions and deepening climate crisis, the Peacebuilding Commission is “more critical than ever”, said the UN Chief, stressing that the Pact for the Future charts a course to reforming international cooperation by prioritizing prevention, mediation and peacebuilding.

    “Now we have the chance to consolidate and expand [the Commission’s] work,” said António Guterres, Secretary-General of the United Nations, recognizing its vital advisory role to the Security Council — including in the context of UN mission transitions.  He also commended its convening role within the UN and beyond, engaging civil society, the private sector, international and regional organizations and financial institutions.

    This year’s Review of the United Nations Peacebuilding Architecture offers an opportunity to strengthen the Commission’s role, he said, pointing to his recent report on Peacebuilding and Sustaining Peace, which suggests mobilizing political and financial support for nationally owned peacebuilding and prevention strategies.  

    On the issue of financing, he said the General Assembly’s approval of assessed contributions to the Peacebuilding Fund marks “an important step”. However, it is still a far cry from the “quantum leap” of $500 million per year that is needed.  Emphasizing that “voluntary contributions remain paramount”, he encouraged countries to provide additional support to the Fund.  Additionally, given the urgent and expanding needs for peacebuilding support, the Review of the Peacebuilding Architecture shall further examine how to ensure the Fund’s predictability, adequacy and sustainability by exploring innovative financing mechanisms, public-private partnerships and blended funding models.

    “We must never waver in our commitment to pursue, achieve and sustain peace,” he stated, noting that the UN’s peacebuilding architecture — in collaboration with UN country teams — is essential to help “translate aspirations into reality”.

    Following the Secretary-General’s opening remarks, the Commission adopted the body’s report on its eighteenth session, whose final version will be transmitted to the General Assembly and the Security Council for their respective annual consideration. 

    Election of Officers for Nineteenth Session

    The Commission also elected officers for its nineteenth session by acclamation, including Germany as Chair and Japan, Poland, Brazil and Morocco as Vice-Chairs.  Further, it re-elected the following countries to chair the Commission’s country-specific configurations:  Morocco, for the Central African Republic; Brazil, for Guinea-Bissau; and Sweden, for Liberia. 

    Outgoing Commission Chair Highlights 2024 Efforts to Address Peacebuilding Challenges

    As outgoing Chair of the Commission’s eighteenth session, the representative of Brazil noted the Commission’s “robust” mandate as a platform for countries seeking assistance for their peacebuilding and conflict-prevention priorities.  “Through the [Commission], political, technical and financial support can be mobilized, and real impact on the ground can be achieved,” he said.  In that context, he highlighted that the body’s work in 2024 focused on exploring “concrete peacebuilding challenges” and showcasing “what has worked, lessons learned, frustrations and challenges different countries face”. 

    He added that, during 2024, the Commission also engaged in preparation for the 2025 peacebuilding architecture review.  Expressing hope that Member States see such review “as an opportunity that should not be missed”, he urged better synergy between the Commission, the Peacebuilding Support Office and the Peacebuilding Fund. “We should also explore ways to provide adequate institutional support to the [Commission] at all levels,” he said, expressing hope that the Trusteeship Council room may one day be renamed the Peacebuilding Council room.

    Pointing out that the Security Council’s permanent members are also permanent Commission members, he expressed hope that those States will participate more in Commission meetings in the future.  “With great power comes great responsibility,” he observed.

    Incoming Commission Chair Cites Strong Focus in 2025 on National Ownership, Closer Relationship with Peacebuilding Fund and Improving Impact 

    The representative of Germany, Chair of the Commission’s nineteenth session, noted her intention to continue supporting a strong emphasis on national ownership, the body’s convening power and its “unique bridging role” across the pillars of the United Nations.  Also pointing to opportunities to improve the Commission’s coherence and efficacy, she said that she will ensure follow-up with countries after a Commission meeting, work on a closer relationship between the Commission and the Peacebuilding Fund, and make the Fund’s work more visible — “especially with a view to the first-time-ever use of assessed contributions”. 

    She also detailed her hope to strengthen evidence-based discussion and peer-to-peer learning and consider the question of peacebuilding impact — “to ensure that the work we do here in New York has an impact on people’s lives on the ground”.  Work will also be done to build on previous efforts to foster the Commission’s relationship with regional organizations, strengthen coherence within the UN and enhance cooperation with international financial institutions.  She added that a close, meaningful exchange with other UN bodies is “key”. 

    Assistant Secretary-General Says Commission Uniquely Positioned to Offer Platform for Member States 

    The Assistant Secretary-General of the Peacebuilding Commission said that, in the current context of the proliferation of conflict and violence worldwide, the Commission is “uniquely positioned” to offer a platform for Member States that wish to come to it.  She added that 2025 presents new opportunities to strengthen the Commission’s role, including by accompanying countries’ peacebuilding journey.

    Incoming Vice Commission Chairs and Chairs of Country-Specific Configurations Share Perspectives

    Incoming Vice Chairs for the nineteenth session echoed that sentiment, with the representative of Poland saying 2025 “presents itself as a truly unique and exceptional year”.  The Pact for the Future, adopted in 2024, must be made to work “in the best possible way”, he said, particularly in the context of strengthening peacebuilding and conflict prevention. 

    Morocco’s speaker stressed that the Commission should expand its geographic and thematic scope while upholding the principle of national ownership.  Underscoring the need to optimize the Commission’s collaboration with the Council and other UN organs, he called for a comprehensive approach towards sustaining peace by leveraging and utilizing each body’s unique characteristics in a mutually complementary manner.

    The representative of Morocco said he will work to promote reconciliation, post-conflict reconstruction, development and inclusive peace processes.  As Chair of the Commission’s country-specific configuration for the Central African Republic, he will continue to work to mobilize the necessary resources for organizing upcoming local elections in that country — a “crucial stage for strengthening local governance and legitimacy of the authorities”.

    Brazil’s delegate stated:  “Our region faces its own peacebuilding and conflict prevention challenges [while] developing solutions.”  Noting his country’s readiness to share lessons learned, he said “this exchange is most useful in our common task as peacebuilders”. 

    The representative of Sweden, Chair of the Commission’s country-specific configuration for Liberia, said that Liberia has made “remarkable gains over the years”.  Peaceful elections held in 2023 and the orderly transfer of power in 2024 “were true milestones”, he stressed, noting that the configuration’s focus for 2025 will be consolidating long-term peacebuilding gains in the country. Liberia, he added, “has important experiences and lessons learned” to share with the Commission, including sustaining peace, inclusive development and reconciliation.

    Commission Members Stress Need to Invest in Addressing Root Causes of Conflict and Violence

    In the ensuing discussion, Commission members underscored the need to invest in addressing the root causes of conflict and violence, adding that the Pact for the Future has gained recognition for conflict prevention as a universally shared responsibility.

    “2025 will be a crucial year for peacebuilding,” said the representative of the European Union, in its capacity as observer.  The Council has demonstrated overwhelming support for this agenda by holding two open debates on conflict prevention.  “We have collectively recognized that elaborating national prevention strategies, anchored in national ownership, should be an aspiration for all countries,” he stressed.  The peacebuilding architecture review is “an opportunity to consolidate these gains” and to further strengthen the Commission as “an institution that can act as a bridge at the UN”, he continued.  As the Commission’s biggest donors, the bloc and its member States have matched this political commitment with funding support.

    Spotlighting the Commission’s “significant achievements”, Australia’s delegate said it expanded its regional engagement, provided input into the review and facilitated the revised terms of reference for peacebuilding funding.  Underlining the need to strengthen the Commission’s engagement with his region, he said it should encourage Member States to present their peacebuilding priorities. 

    “Although, at times, we may have had divergent views on how peacebuilding should be conducted, we continue to agree on the foundational principles of peacebuilding,” said his counterpart from South Africa. Namely, that it should be nationally owned and led, context-specific and adaptable, and that more can be done to support peacebuilding in post-conflict contexts. 

    “It is high time to match the ambitions with the capacities,” said Egypt’s delegate, underscoring the need to expand resources and guarantee the Commission’s more structured cooperation with the Council.

    Colombia’s representative, noting that the Commission regularly invites her delegation to share his country’s “experience of peace”, said that doing so helps States “better elucidate a horizon of peace in other places”. The legitimacy of the UN and the future of multilateralism “depend on our capacity to tackle complex crises, contribute to peace and security and ensure a better life for our peoples”, she asserted. 

    The speaker for Bangladesh, noting that the Commission has “always” based its work on national ownership, said that the body should continue supporting local needs and national priorities “by bringing all stakeholders into the discussion”.  Further, the Commission should strengthen its advisory role to facilitate the smooth transition of peacekeeping operations, leading to long-lasting peace. 

    For his part, the Russian Federation’s representative said that the upcoming peacebuilding-architecture review “should not reinvent the wheel but, rather, use existing mechanisms”.  He also stressed that the Commission must not focus solely on conflict prevention, losing sight of countries affected by conflict and post-conflict countries.  “It is them that need the political and financial support so that crises don’t return,” he said.  Also emphasizing the need to avoid duplication of work, he observed:  “The strong suit of the UN system is the principle of division of labour between its main organs.”

    MIL OSI United Nations News –

  • MIL-OSI New Zealand: Govt Cuts – Workers sound alarm as Govt cuts impact services Kiwis rely on – PSA Survey

    Source: PSA

    The Government’s austerity measures are taking a toll on public servants’ wellbeing and their ability to deliver effective public services, a new PSA survey has found.
    More than 4,000 workers in public services, health, the state sector, local government, and community services responded to the survey.
    Key findings:
    – Over half of respondents have too much work to do everything well
    – More than 90% have been affected by restructuring
    – More than 40% regularly work longer hours without pay
    – 70% respond to work calls and messages outside of work hours
    – Over half are worried about losing their job
    Workers say the Government’s sweeping funding cuts are undermining their ability to do a good job. One health professional said it feels “like you are doing a disservice to people in our community as we cannot deliver the health care that they need with our waitlist and restricted service provision.”
    A respondent at a community organisation that’s had its funding significantly cut by the Government said they now spend more time chasing funding and less time providing services to the community.
    “It’s obvious now that the Government’s claim that ‘no front-line services will be affected’ is a lie,” said Duane Leo, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. “No amount of spin will stop the public from seeing that the Government is deliberately underfunding their public services and setting the table for private shareholders to enrich themselves from people’s needs.”
    The survey also shows that, like most of the country, public sector, health and community workers are struggling with cost-of-living pressures. More than half are worried about becoming unemployed and not being able to find a job, as the Government signals cuts will continue.
    Public sector, health and community workers need more certainty and better management support. They want fair treatment, better pay, career progression and to be valued. Most of all, they want the restructuring and disruption to stop, to allow them to get on with the work of delivering for their communities.
    “Public, health, and community services – and the workers that provide them – are part of a future that works for everyone in Aotearoa,” said Leo. “To get that, they need certainty, resources, leadership, and a vision for effective, universal services. This survey shows the Government isn’t providing any of this. It’s part of a mountain of evidence that this Government wants a country for the wealthy few, rather than the many.”
    About the survey
    The PSA conducted the survey in December 2024 and got 4090 responses from members across the country, working in public services, health, the state sector, local government, and community public services.
    Read the full report of the survey results attached.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: International treaty examination of the NZ – UAE Comprehensive Economic Partnership Agreement and Agreement on the Promotion and Protection of Investments

    Source: New Zealand ParliamentThe Foreign Affairs, Defence and Trade Committee is calling for submissions on its international treaty examination of the New Zealand – United Arab Emirates Comprehensive Economic Partnership Agreement, and Agreement between the Government of New Zealand and the Government of the United Arab Emirates on the Promotion and Protection of Investments.
    MIL OSI

    MIL OSI New Zealand News –

  • MIL-OSI USA: Attorney General Bonta Announces Nearly $600K Settlement with Amazon Resolving Proposition 65 and UCL Claims Relating to Sales on its Website of Skin-Lightening Face Creams Containing Mercury

    Source: US State of California

    OAKLAND – California Attorney General Rob Bonta today announced a settlement with Amazon.com, Inc. (Amazon) resolving allegations under Proposition 65 and the Unfair Competition Law arising from Amazon’s facilitation of sales into California of skin-lightening creams with high mercury levels. As part of the settlement, which is subject to court approval, Amazon will pay nearly $600,000 in civil penalties, attorneys’ fees, and costs to the Attorney General, and will agree to injunctive provisions aimed at preventing creams with high mercury levels from being sold through Amazon’s website into California. The Attorney General’s settlement will also resolve the claims of two Proposition 65 private enforcers, Larry Lee and As You Sow, the latter an environmental non-profit organization, which prior to Attorney General Bonta’s investigation had discovered that Amazon had facilitated the sale of mercury-containing face creams in California, and had litigated against the company. 

    “At the California Department of Justice, we are unwavering in our commitment to upholding laws that protect the safety and well-being of Californians,” said Attorney General Bonta. “Today’s settlement reflects that commitment, and we will continue to hold accountable those who violate our state environmental and consumer laws.”

    Mercury is a powerful neurotoxin that impairs the nervous system, and prenatal exposure can impede normal development in fetuses and young children. Exposure to mercury can lead to irritability, muscle incoordination, memory loss, brain damage, and even death. Mercury is capable of being absorbed through skin, and the transfer of mercury from a consumer’s hand to a common surface area can also create an exposure source for children and other household members.

    The Attorney General investigated Amazon for facilitating third-party sales of skin-lightening face creams that contain mercury following lawsuits by the private enforcers. The California Department of Justice’s (DOJ) investigation identified several face creams that contained very high mercury levels—ranging from 121 to 16,000 parts per million, well in excess of the U.S. Food and Drug Administration’s maximum limit of 1 part per million—and that required a warning about those mercury levels under Proposition 65. Amazon had failed to provide such warnings for creams sold through its site, thereby violating both Proposition 65 and the Unfair Competition Law. 

    Following his investigation, the Attorney General asked Amazon to cease and desist from facilitating the sale of face creams identified as containing excessive mercury. Amazon, which does not manufacture these products, agreed to implement a sale-prevention protocol, or “suppression rule,” to prevent face creams with dangerous levels of mercury from being available for sale on its website.

    Under the proposed consent judgment, Amazon will pay $218,560 in civil penalties to the Attorney General’s Office pursuant to Proposition 65 and the Unfair Competition Law, $278,942 to reimburse a portion of the Attorney General’s Office’s attorneys’ fees and costs, and $65,000 for future monitoring costs. Amazon will pay additional penalties and fees to resolve the claims of the private enforcers. The settlement also contains injunctive provisions, including that Amazon must do the following: continue to implement the suppression rule, and continuously adjust it to ensure that it remains effective; retain an independent product consultant who has significant experience with these skin-lightening products; and create a list of pre-approved brands that do not include mercury in their products. 

    A copy of the complaint and proposed consent judgment, which remain subject to court approval, can be found here and here.  

    MIL OSI USA News –

  • MIL-OSI Security: New Orleans Man Sentenced For Maintaining Drug Involved Premises

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – JENNIE L. JAMES (“JAMES”), age 67, a resident of Warren, Arkansas, was sentenced on January 28, 2025, after previously pleading guilty to maintaining a drug-involved premises, in violation of Title 21, United States Code, Section 856(a)(1).  JAMES was sentenced to twelve months and one day imprisonment, three years of supervised release, and a $100 mandatory special assessment fee.

    According to court documents, JAMES maintained her residence, and assisted her son and co-defendant, Jerad M. Barrett, in using the residence to cultivate and distribute kilogram quantities of marijuana.  Agents also located communications between JAMES and Barrett related to the distribution, packaging, and relocation of narcotics within the Eastern District of Louisiana.  During the investigation, agents recovered approximately 940 kilograms of marijuana, stored in plastic bins and barrels, both from within the residence and other storage units.

    This case was investigated by the Federal Bureau of Investigation, the Louisiana State Police, the Jefferson Parish Sheriff’s Office, and the Orleans Parish Sheriff’s Office.  The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.

    MIL Security OSI –

  • MIL-OSI Security: Hudson County Man Charged With Online Enticement Of A Minor

    Source: Office of United States Attorneys

    NEWARK, N.J. – A Hudson County man has been charged with enticing a minor to engage in criminal sexual conduct, Acting U.S. Attorney Vikas Khanna announced.

    Ryan Niksa, 34, of Jersey City, New Jersey, was charged in a one-count complaint with enticement of a minor to engage in sexual activity.  He had an initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on January 29, 2025, and was ordered detained.

    According to documents filed in this case and statements made in court:

    Since in or around August 2024, Niksa communicated with a minor victim located in another state through social media applications and text messages. Niksa and the minor victim exchanged sexually explicit photos and videos.  Niksa expressed his desire to live with the minor victim, discussed traveling to the minor victim’s home state to be with her, and discussed running away with the minor victim to another country where they could evade law enforcement.   

    Enticement of a minor carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison, as well as a $250,000 fine.

    Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, the Jersey City Police Department, under the direction of Director James Shea, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.

    The government is represented by Assistant U.S. Attorney Alison Thompson of the Organized Crime and Gangs Unit in Newark.

    The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

    25-027                                                             ###

    Defense counsel: Shaiba Rather, Assistant Federal Public Defender

    MIL Security OSI –

  • MIL-OSI Security: Austin Area Fentanyl Dealer Sentenced to 10 Years for Selling Counterfeit Pills

    Source: Office of United States Attorneys

    AUSTIN, Texas – A Del Valle man was sentenced today to 120 months in federal prison for distributing fake oxycodone pills laced with fentanyl.

    According to court documents, between May and June 2023, Gabriel Cecilio Osorio, 22, was investigated for distributing fentanyl-laced, fake oxycodone pills. As part of the investigation, Drug Enforcement Administration agents orchestrated two controlled purchases of pills from Osorio, resulting in the acquisition of 100 pills in the first transaction and 3,000 pills in the second. DEA obtained and executed a search warrant, and on June 22, 2023, Osorio was arrested outside of his residence with approximately 5,000 pills. Inside the home, agents found another 3,700 pills, a money counter, a digital scale, four firearms, and $45,701 in cash.

    In addition to the 10-year prison term, Osorio was ordered to forfeit $45,701.00, four firearms, and assorted jewelry that were seized during the search.

    “Gabriel Osorio’s sentencing today continues this office’s work to stem the tide in the greater Austin area of the illegal drug distribution of fake pharmaceutical pills containing fentanyl,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Fentanyl poses a significant threat to communities across this district and the United States, and I am grateful to the many federal, state and local law enforcement agencies who join us in prioritizing these very serious drug crimes.”

    The DEA, Texas Department of Public Safety, the Hays County Sheriff’s Office, Bastrop County Sheriff’s Office, Williamson County Sheriff’s Office, and the Georgetown Police Department investigated the case.

    Assistant U.S. Attorney Daniel Castillo prosecuted the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Two Men Indicted for COVID Unemployment and Loan Fraud

    Source: Office of United States Attorneys

    Defendants allegedly received over $43,000 in Pandemic Unemployment Assistance funds

    BOSTON – Two men were arrested for allegedly submitting fraudulent information in an effort to obtain loans through the Pandemic Unemployment Assistance (PUA) program.

    Dominik Manigo, 25, of Weymouth, and Nelson Roche Diaz, 28, of Brockton, were indicted by a federal grand jury on one count of wire fraud conspiracy, and on one count each of wire fraud. Manigo and Roche appeared in federal court in Boston on Monday.

    According to the charging documents, in or about May 2020, Manigo and Roche allegedly submitted fraudulent claims for PUA on the Massachusetts Department of Unemployment Assistance portal. Further, Manigo and Roche allegedly submitted fraudulent letters claiming the pandemic had impacted their employment at a restaurant in Boston. Manigo and Roche each allegedly received over $43,000 in PUA and related funds.

    The charges of wire fraud and wire fraud conspiracy provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. 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; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud, Northeast Region; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; Boston Police Commissioner Michael Cox; and Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Weymouth Police Department. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics and Money Laundering Unit is prosecuting the case.

    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 https://www.justice.gov/OCDETF.

    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, please visit https://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 https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-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 Security: East St. Louis Woman Sentenced to Serve 10 Years in Prison for Transporting Controlled Substances to Pemiscot County

    Source: Office of United States Attorneys

    CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Thursday sentenced Georgia R. Phillips, 49, of East St. Louis, Illinois, to 120 months (10 years) in federal prison for the offense of possession with intent to distribute cocaine base.

    Court records reflect that Phillips was pulled over for a traffic violation on Interstate 55 in Pemiscot County last May. During the stop, officers discovered large quantities of controlled substances in her vehicle, including approximately four ounces of crack cocaine. After being placed under arrest, Phillips admitted she was traveling from East St. Louis to deliver the controlled substances to an individual in Hayti, Missouri. The pair met in prison while serving a previous sentence for a drug-trafficking crime. At her guilty plea hearing last year, Phillips admitted that she intended to distribute the controlled substances. After serving her sentence, Phillips will be placed on a three-year term of supervised release.

    This case was investigated by the Pemiscot County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jack Koester handled the prosecution for the Government.

    MIL Security OSI –

  • MIL-OSI Security: St. Louis County Felon Admits Gun Charge

    Source: Office of United States Attorneys

    ST. LOUIS – A convicted felon caught video calling a jail inmate while displaying firearms pleaded guilty to a gun charge Thursday.

    In June of 2024, Bruce Donta Robinson, 28, contacted an inmate at a detention facility in Pulaski County, Illinois via video call. During the call, Robinson can be seen with what appeared to be two semi-automatic weapons. Robinson is a convicted felon and is thus barred from possessing firearms. He was also on supervised release from a prior gun crime at the time.

    After reviewing the video call, the FBI obtained a court-approved search warrant for Robinson’s St. Louis County residence. Agents found a loaded Polymer 80 semi-automatic pistol with no serial number and a large capacity magazine, a loaded Glock .45-caliber semi-automatic pistol with a laser attachment and a stolen Rock River Arms AR-15 pistol with a large capacity magazine.
        
    Robinson pleaded guilty to one felony count of being a felon in possession of a firearm.
    The charge carries a potential penalty of up to 15 years in prison.

    The FBI investigated the case. Assistant U.S. Attorney J. Christian Goeke is prosecuting the case.

    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.

    MIL Security OSI –

  • MIL-OSI Security: Illegal Alien from Costa Rica Sentenced for Firearm Possession

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that MILTON RAYO CASTILLO (“RAYO CASTILLO”), age 26, a native of Costa Rica, was sentenced on January 28. 2025 by United States District Judge Wendy Vitter, for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A).  RAYO CATILLO was sentenced to fifty-two (52) months incarceration, supervised release for three (3) years, and payment of a $100 mandatory special assessment fee.

    According to the indictment, on or about March 10, 2024, RAYO CASTILLO, an alien illegally present in the United States, was found in possession of a nine-millimeter semi-automatic pistol, after brandishing the weapon at a patron at a Kenner, Louisiana restaurant.

    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.

    U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Kenner Police Department in investigating this matter.  Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Lawton Couple Charged with Child Sex Trafficking

    Source: Office of United States Attorneys

    OKLAHOMA CITY – A federal Grand Jury has charged JACKIE ANTONIO DUNCAN, 35, and NIA HALL, 30, both of Lawton, with sex trafficking of children, sex trafficking by force, fraud, or coercion, and conspiracy to commit sex trafficking, announced U.S. Attorney Robert J. Troester. 

    According to public record, in May 2024, two juveniles ran away from a juvenile group home in Lawton, Oklahoma, and were entered into law enforcement databases as missing juveniles. One of the juveniles was located by officers with the Plano Police Department on July 16, 2024, at a motel in Collin County, Texas, where she disclosed she and the other missing juvenile had been sex-trafficked.  The juvenile told officers that after she and the other juvenile had fled the group home, they were approached by two people, later identified as Hall and Duncan, at a gas station. The juveniles began living with Hall and Duncan, who soon after transported the juveniles to various cities in Texas, where they performed sex acts for money, which Hall and Duncan kept. In return, the juveniles were provided food and shelter. The juvenile told authorities she had recently escaped Hall and Duncan’s car in the Dallas area. On September 30, 2024, the second juvenile was found and recovered in San Antonio, Texas.  She recounted a similar story of being sex-trafficked by Hall and Duncan in exchange for food and shelter. During the investigation, local and federal law enforcement reviewed sex advertisements associated with Hall. These advertisements contained photos of the juveniles.

    Public record further reflects that Hall and Duncan were arrested on December 16, 2024. On January 21, 2025, a federal Grand Jury returned a three-count Indictment against Duncan and Hall, charging them with sex trafficking of children; sex trafficking by force, fraud, or coercion; and conspiracy to commit sex trafficking. If found guilty, Hall and Duncan face up to life in federal prison and fines of up to $250,000 on each count.

    The public is reminded these charges are merely allegations, and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. 

    This case is the result of an investigation by the Bureau of Indian Affairs, FBI Oklahoma City Field Office, Lawton Police Department, Choctaw Nation Lighthorse Police Department, Oklahoma Highway Patrol, Oklahoma Bureau of Narcotics & Dangerous Drugs Control, Fort Smith Police Department, Arkansas State Police, San Antonio Police Department, Plano Police Department, and Fort Worth Police Department. Assistant U.S. Attorneys Jordan Ganz and Brandon Hale are prosecuting the case.

    Reference is made to public filings for additional information.

    MIL Security OSI –

  • MIL-OSI Security: Owner of Retirement Services Company Sentenced to Federal Prison for Stealing Money from Clients Through Wire Fraud Scheme

    Source: Office of United States Attorneys

    ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that Jerry O. Pearson, 62, of Alexandria, Louisiana, was sentenced today by United States District Judge Dee D. Drell for committing wire fraud. Pearson was sentenced to 63 months in prison, followed by 3 years of supervised release, and ordered to pay restitution to his victims in the amount of $3,431,152.21.  

    According to information presented in court, Pearson was the owner/operator of Mid South Retirement Services, LLC (“Mid South”) located in Boyce, Louisiana, from 2012 to 2021. Pearson managed Self-Directed Individual Retirement Accounts (SDIRA). An SDIRA is an IRA held by a custodian that allows investment in a wider range of assets than most conventional IRA custodians permit. Mid South served as the custodian of SDIRAs and managed approximately $40 million in assets. Pearson was also the registered agent and manager/member of an unrelated company, Gray-Walk Farms, LLC, which was registered in the State of Louisiana and located in Alexandria. Gray-Walk Farms is unrelated to Mid South and did not provide SDIRAs. 

    Pearson created a scheme to defraud clients where he would take funds that Mid South was holding as the custodian, and transfer them to other accounts he controlled, without the client’s permission. Pearson used intermediary accounts at financial institutions in the Western District of Louisiana and elsewhere in the name of Mid South and others to move the money out of the Mid South Funding account where client funds were held. The funds would then be moved to Gray-Walk Farm’s accounts, Pearson’s personal bank accounts, or investment accounts in his name. In total, during the scheme, Pearson transferred $3,431,152.21 in client funds from the Mid South client funding bank account to other accounts he controlled. Pearson then used the funds for himself, as well as the benefit of his family and other companies that he controlled. In order to keep the scheme from being detected, Pearson would misrepresent to clients that he was investing the funds as they had directed, when, in fact, he was taking the money.  Pearson pleaded guilty on August 16, 2024, to the Bill of Information charging him with one count of wire fraud.

    “Unfortunately, there were over 70 victims who fell prey to Pearson’s schemes and lies in connection with this case and many are left without their life savings and retirement as a result of his selfish actions,” said Acting U.S. Attorney Alexander C. Van Hook. “This defendant conned many people for years, but his actions have finally caught up with him. This sentence should send a message that if you commit this type of fraud, you will go to prison.”

    “Mr. Pearson abused the trust of his clients for the benefit of himself and his family,” said Special Agent in Charge Lyonel Myrthil of FBI New Orleans. “The FBI will continue to work with partners like the Louisiana Office of Financial Institutions to bring justice to people who are victimized in cases like this.”

    The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Seth D. Reeg. The Louisiana Office of Financial Institutions was also involved in the investigation.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Estill County Man Sentenced for Distributing Oxycodone Pills

    Source: Office of United States Attorneys

    LONDON, Ky. – An Irvine, Ky., man, Chad Newman, 40, was sentenced to 87 months in prison, by U.S. District Judge Robert E. Wier, for conspiracy to distribute oxycodone. 

    According to his plea agreement, from January 1, 2019, until April 11, 2023, Newman conspired with others to distribute oxycodone pills in Madison, Estill, Laurel, Clay, and Knox Counties.  During this time frame, Newman obtained oxycodone 30 mg pills from a source of supply in Louisville, which he would then sell to mid-and lower-level drug traffickers and drug users throughout Southeast Kentucky. 

    Under federal law, Newman must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. 

    Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge of the DEA Louisville Field Division; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Sheriff Chris Flynn, Estill Count Sheriff’s Office, jointly announced the sentence.

    The investigation was conducted by DEA, KSP, Madison County Drug Task Force, and Estill County Sheriff’s Office.  Assistant U.S. Attorney Sam Dotson prosecuted the case on behalf of the United States.

    — END — 

    MIL Security OSI –

  • MIL-OSI Security: U.S. Marshals Working with Waller County to Locate Escapee

    Source: US Marshals Service

    Houston, TX – The U.S. Marshals Gulf Coast Violent Offenders and Fugitive Task Force on Jan. 27 joined the Waller County Sheriff’s Office efforts to search for a man who escaped Jan. 23 from a medical facility in Belleville. 

    Salvador Saucedo, a registered sex offender, had been arrested earlier in the day and was undergoing testing at the Mid Coast Medical Center when he escaped.  

    Saucedo was previously charged with indecency with a child in March 2024 and with stalking in May 2024 in Brazos County. He is currently charged by Waller County with resisting arrest, escape, assault on a peace officer, fugitive, and possession of a controlled substance.

    Saucedo is described as a Hispanic man who has face tattoos, missing front teeth, and brown hair with red highlights. He was last seen wearing a white head wrap, dark colored T-shirt and blue jeans. He should be considered dangerous.

    Investigators say Saucedo could be posing as a homeless person needing help or working as a day labor. He is fluent in Spanish and may be able to blend in as a migrant. He may have shaved his hair because he knows the color stands out.

    The U.S. Marshals Service (USMS) is offering a reward of up to $5,000 for information leading to Saucedo’s arrest and indictment.

    Anyone with information is urged to contact the USMS at 1-877-WANTED2 or send tips via the USMS Tips App.

    Information may also be sent to the Waller County Sheriff’s Office at (979) 826-8282. Anonymous tips can also be made by calling Waller County Crime Stoppers at (979) 826-8266.

    The USMS Gulf Coast Violent Offenders and Fugitive Task Force (GCVOFTF) combines the efforts of federal, state and local law enforcement agencies to locate and arrest the most dangerous fugitives. Operating throughout the Southern District of Texas the GCVOFTF is dedicated to reducing violent crime by locating and apprehending wanted criminals, as well as serving as the central point for agencies to share information on fugitive matters. 

    MIL Security OSI –

  • MIL-OSI Security: North Battleford — Battlefords RCMP seek public assistance locating missing 14-year-old female

    Source: Royal Canadian Mounted Police

    On January 27, Battlefords RCMP received a report of a missing 14-year-old female, Hailey Night.

    Hailey was last seen January 26 on 19th Avenue in North Battleford.

    Since she was reported missing, Battlefords RCMP have been checking places Hailey is known to visit and following up on information received. They are now asking members of the public to report information on Hailey’s whereabouts.

    Hailey is described as:

    • Height: 5’4″
    • Weight: Average build
    • Eye colour: Brown and wears glasses
    • Hair colour and style: Black and orange
    • Last seen wearing: A black hoodie, grey pants, brown and white shoes

    Hailey is known to travel to the following areas, but this has not been confirmed.

    • Calgary
    • Edmonton

    If you have seen Hailey or know where she is, contact Battlefords RCMP at 310-RCMP. Information can also be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

    MIL Security OSI –

  • MIL-OSI: Waldencast plc Announces Upcoming Earnings Release and Conference Call Dates

    Source: GlobeNewswire (MIL-OSI)

    LONDON, Jan. 30, 2025 (GLOBE NEWSWIRE) — Waldencast plc, (NASDAQ: WALD) (“Waldencast”), a global multi-brand beauty and wellness platform, announced upcoming earnings release, conference call and webcast information for the fourth quarter and full fiscal year 2024 and first, second, and third quarters of fiscal year 2025. The webcasts will be available on the Investor Relations page on the company’s website at https://ir.waldencast.com/ approximately 2 weeks prior to the events.

    For the fourth quarter and full fiscal year 2024, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, March 18th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, March 19th, 2025 at 8:30am ET.

    For the first quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, May 13th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, May 14th, 2025 at 8:30am ET.

    For the second quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Monday, August 18th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Tuesday, August 19th, 2025 at 8:30am ET.

    For the third quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, November 11th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, November 12th, 2025 at 8:30am ET.

    About Waldencast

    Founded by Michel Brousset and Hind Sebti, Waldencast’s ambition is to build a global best-in-class beauty and wellness operating platform by developing, acquiring, accelerating, and scaling conscious, high-growth purpose-driven brands. Waldencast’s vision is fundamentally underpinned by its brand-led business model that ensures proximity to its customers, business agility, and market responsiveness, while maintaining each brand’s distinct DNA. The first step in realizing its vision was the business combination with Obagi Skincare and Milk Makeup. As part of the Waldencast platform, its brands will benefit from the operational scale of a multi-brand platform; the expertise in managing global beauty brands at scale; a balanced portfolio to mitigate category fluctuations; asset light efficiency; and the market responsiveness and speed of entrepreneurial indie brands. For more information please visit: https://ir.waldencast.com/.

    Contacts

    Investors
    ICR
    Allison Malkin
    investors@waldencast.com

    Media
    ICR
    Brittney Fraser/Alecia Pulman
    waldencast@icrinc.com

    The MIL Network –

  • MIL-OSI: AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA BARBARA, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — AppFolio, Inc. (NASDAQ: APPF) (“AppFolio” or the “Company”), a technology leader powering the future of the real estate industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.

    “I am proud of our strong performance in 2024 as we continue to deliver value to our customers through differentiated industry-leading innovation,” said Shane Trigg, President and CEO, AppFolio. “Our investments in AI and the resident experience are translating into meaningful outcomes for our customers and fueling our mission to build the platform where the real estate industry comes to do business. We are acquiring, growing, and retaining customers while delivering exceptional service.”

    Financial Highlights for Fourth Quarter of 2024

    • Revenue grew 19% year-over-year to $204 million.
    • Total units under management grew 6% year-over-year to 8.7 million.
    • GAAP operating income was $23 million, or 11.3% of revenue, compared to operating income of $28 million, or 16.4% of revenue in Q4 2023.
    • Non-GAAP operating income was $41 million, or 20.2% of revenue, compared to an operating income of $42 million, or 24.3% of revenue, in Q4 2023.
    • Net cash provided by operating activities was $37 million, or 18.0% of revenue, compared to $31 million, or 18.1% of revenue, in Q4 2023.
    • Non-GAAP free cash flow was $35 million, or 17.3% of revenue, compared to $34 million, or 19.9% of revenue, in Q4 2023.

    Financial Highlights for Fiscal Year 2024

    • Revenue grew 28% year-over-year to $794 million.
    • GAAP operating income was $136 million, or 17.1% of revenue, compared to operating income of $1 million, or 0.2% of revenue, in fiscal year 2023.
    • Non-GAAP operating income was $200 million, or 25.2% of revenue, compared to operating income of $76 million, or 12.2% of revenue, in fiscal year 2023.
    • Net cash provided by operating activities was $188 million, or 23.7% of revenue, compared to $60 million, or 9.7% of revenue, in fiscal year 2023.
    • Non-GAAP free cash flow was $182 million, or 22.9% of revenue, compared to $74 million, or 11.9% of revenue, in fiscal year 2023.

    Financial Outlook
    Based on information available as of January 30, 2025, AppFolio’s outlook for fiscal year 2025 follows:

    • Full year revenue is expected to be in the range of $920 million to $940 million.
    • Full year non-GAAP operating margin as a percentage of revenue is expected to be in the range of 24.5% to 26.5%.
    • Diluted weighted average shares outstanding are expected to be approximately 37 million for the full year.

    Conference Call Information
    As previously announced, the Company will host a conference call today, January 30, 2025, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Eastern Time (ET), to discuss the Company’s fourth quarter and fiscal year 2024 financial results. A live webcast of the call will be available at: https://edge.media-server.com/mmc/p/ed7u6ptp/. To access the call by phone, please go to the following link: https://register.vevent.com/register/BIdc9c20754ec649859552be5efc7cfa83, and you will be provided with dial in details. A replay of the webcast will also be available for a limited time on AppFolio’s Investor Relations website at https://ir.appfolioinc.com/news-events/events.

    The Company also provides announcements regarding its financial results and other matters, including SEC filings, investor events, and press releases, on its Investor Relations website at https://ir.appfolioinc.com/, as a means of disclosing material nonpublic information and for complying with AppFolio’s disclosure obligations under Regulation FD.

    About AppFolio
    AppFolio is a technology leader powering the future of the real estate industry. Our innovative platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit ir.appfolioinc.com.

    Investor Relations Contact:
    Lori Barker
    ir@appfolio.com

    Use of Non-GAAP Financial Measures
    Reconciliations of current and historical non-GAAP financial measures to AppFolio’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables entitled “Statement Regarding the Use of Non-GAAP Financial Measures.”

    AppFolio is unable, at this time, to provide GAAP equivalent guidance measures on a forward-looking basis for non-GAAP operating margin because certain items that impact this measure are uncertain, out of our control, or cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

    Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements that are not statements of historical fact contained in this press release, and can be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “future’” “predicts, “projects,” “target,” “seeks,” “contemplates,” “should,” “will,” “would” or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release relate to future operating results and financial position, including the Company’s fiscal year 2025 financial outlook, anticipated future expenses and investments, the Company’s business opportunities, the impact of the Company’s strategic actions and initiatives, the potential benefits and effect of the Company’s AI and resident experience related services and their impact on the Company’s plans, objectives, expectations and capabilities.

    Forward-looking statements represent AppFolio’s current beliefs and expectations based on information currently available and speak only as of the date the statement is made. Forward-looking statements are subject to numerous known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements include those risks, uncertainties and other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 1, 2024, and the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as well as in the Company’s other filings with the SEC. You should read this press release with the understanding that the Company’s actual future results may be materially different from the results expressed or implied by these forward-looking statements.

    The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)
    (in thousands)
        December 31,
    2024    		   December 31,
    2023
    Assets        
    Current assets        
    Cash and cash equivalents   $ 42,504   $ 49,509
    Investment securities—current     235,745     162,196
    Accounts receivable, net     24,346     20,709
    Prepaid expenses and other current assets     32,807     39,943
    Total current assets     335,402     272,357
    Property and equipment, net     24,483     28,362
    Operating lease right-of-use assets     17,472     19,285
    Capitalized software development costs, net     15,429     21,562
    Goodwill     96,410     56,060
    Intangible assets, net     49,057     2,357
    Deferred income taxes     76,910     —
    Other long-term assets     11,515     8,906
    Total assets   $ 626,678   $ 408,889
    Liabilities and Stockholders’ Equity        
    Current liabilities        
    Accounts payable   $ 2,378   $ 1,141
    Accrued employee expenses     30,157     35,567
    Accrued expenses     14,658     21,723
    Other current liabilities     16,087     11,335
    Total current liabilities     63,280     69,766
    Operating lease liabilities     37,476     41,114
    Deferred tax liabilities     —     697
    Other liabilities     6,632     —
    Total liabilities     107,388     111,577
    Stockholders’ equity     519,290     297,312
    Total liabilities and stockholders’ equity   $ 626,678   $ 408,889
     
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)
    (in thousands, except per share amounts)
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023     2024       2023
    Revenue(1) $ 203,664     $ 171,830   $ 794,202     $ 620,445
    Costs and operating expenses:              
    Cost of revenue (exclusive of depreciation and amortization)(2)   76,189       61,275     282,067       238,076
    Sales and marketing(2)   33,436       21,501     110,597       107,602
    Research and product development(2)   42,296       34,847     160,375       151,364
    General and administrative(2)   23,449       19,035     85,974       93,452
    Depreciation and amortization   5,336       6,933     19,545       28,988
    Total costs and operating expenses   180,706       143,591     658,558       619,482
    Income from operations   22,958       28,239     135,644       963
    Other income, net   697       286     697       3
    Interest income, net   3,499       2,404     13,981       7,031
    Income before provision for income taxes   27,154       30,929     150,322       7,997
    (Benefit from) provision for income taxes   (75,580 )     661     (53,746 )     5,295
    Net income $ 102,734     $ 30,268   $ 204,068     $ 2,702
    Net income per common share:              
    Basic $ 2.82     $ 0.85   $ 5.63     $ 0.08
    Diluted $ 2.79     $ 0.83   $ 5.55     $ 0.07
    Weighted average common shares outstanding              
    Basic   36,374       35,812     36,252       35,629
    Diluted   36,783       36,596     36,782       36,417
     

    (1) The following table presents our revenue categories:

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023     2024       2023
    Core solutions $ 47,631     $ 41,252   $ 180,605     $ 156,692
    Value Added Services   153,334       127,990     605,011       454,098
    Other   2,699       2,588     8,586       9,655
    Total revenue $ 203,664     $ 171,830   $ 794,202     $ 620,445
     

    (2) Includes stock-based compensation expense as follows:

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023     2024       2023
    Costs and operating expenses:                      
    Cost of revenue (exclusive of depreciation and amortization) $ 1,261     $ 798   $ 4,522     $ 3,703
    Sales and marketing   2,746       1,081     8,030       5,983
    Research and product development   5,789       5,123     25,414       20,974
    General and administrative   6,228       5,430     22,361       21,704
    Total stock-based compensation expense $ 16,024     $ 12,432   $ 60,327     $ 52,364
     
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Cash from operating activities              
    Net income (loss) $ 102,734     $ 30,268     $ 204,068     $ 2,702  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:              
    Depreciation and amortization   4,986       6,385       17,790       26,500  
    Amortization of operating lease right-of-use assets   489       514       2,030       2,132  
    Gain on lease modification   —       —       —       (4,281 )
    Deferred income taxes   (76,937 )     (494 )     (76,937 )     (490 )
    Stock-based compensation, including as amortized   16,374       12,980       62,081       54,852  
    Other   (2,074 )     (1,590 )     (8,220 )     (3,108 )
    Changes in operating assets and liabilities:              
    Accounts receivable   1,489       (349 )     (3,383 )     (4,206 )
    Prepaid expenses and other assets   3,015       (12,781 )     4,126       (13,493 )
    Accounts payable   1,850       (80 )     1,559       (1,565 )
    Operating lease liabilities   53       576       (3,143 )     (2,504 )
    Accrued expenses and other liabilities   (15,413 )     (4,246 )     (11,812 )     3,744  
    Net cash provided by operating activities   36,566       31,183       188,159       60,283  
    Cash from investing activities              
    Purchases of available-for-sale investments   (51,854 )     (86,821 )     (317,173 )     (195,740 )
    Proceeds from sales of available-for-sale investments   9,984       —       9,984       1,013  
    Proceeds from maturities of available-for-sale investments   76,280       58,130       240,035       152,382  
    Purchases of property and equipment   (195 )     (3,109 )     (2,016 )     (9,041 )
    Capitalization of software development costs   (1,058 )     (1,431 )     (5,170 )     (4,825 )
    Proceeds from equity-method investment   —       —       —       629  
    Cash paid in business acquisition, net of cash acquired   (77,421 )     —       (77,421 )     —  
    Net cash used in investing activities   (44,264 )     (33,231 )     (151,761 )     (55,582 )
    Cash from financing activities              
    Proceeds from stock option exercises   11       410       3,924       2,595  
    Tax withholding for net share settlement   (12,226 )     (8,790 )     (47,327 )     (28,556 )
    Net cash used in financing activities   (12,215 )     (8,380 )     (43,403 )     (25,961 )
    Net decrease in cash, cash equivalents and restricted cash   (19,913 )     (10,428 )     (7,005 )     (21,260 )
    Cash, cash equivalents and restricted cash              
    Beginning of period   62,667       60,187       49,759       71,019  
    End of period $ 42,754     $ 49,759     $ 42,754     $ 49,759  
     
    RECONCILIATION FROM GAAP TO NON-GAAP RESULTS
    (UNAUDITED)
    (in thousands, except per share data)
          Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
            2024       2023       2024       2023  
    Costs and operating expenses:          
      GAAP cost of revenue (exclusive of depreciation and amortization) $ 76,189     $ 61,275     $ 282,067     $ 238,076  
        Stock-based compensation expense   (1,261 )     (798 )     (4,522 )     (3,703 )
        Workforce reduction costs   —       —       —       (2,135 )
      Non-GAAP cost of revenue (exclusive of depreciation and amortization) $ 74,928     $ 60,477     $ 277,545     $ 232,238  
      GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue   37 %     36 %     36 %     38 %
      Non-GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue   37 %     35 %     35 %     37 %
                       
      GAAP sales and marketing $ 33,436     $ 21,501     $ 110,597     $ 107,602  
        Stock-based compensation expense   (2,746 )     (1,081 )     (8,030 )     (5,983 )
        Workforce reduction costs   —       —       —       (3,401 )
      Non-GAAP sales and marketing $ 30,690     $ 20,420     $ 102,567     $ 98,218  
      GAAP sales and marketing as a percentage of revenue   16 %     13 %     14 %     17 %
      Non-GAAP sales and marketing as a percentage of revenue   15 %     12 %     13 %     16 %
                       
      GAAP research and product development $ 42,296     $ 34,847     $ 160,375     $ 151,364  
        Stock-based compensation expense   (5,789 )     (5,123 )     (25,414 )     (20,974 )
        Workforce reduction costs   —       —       —       (2,635 )
      Non-GAAP research and product development $ 36,507     $ 29,724     $ 134,961     $ 127,755  
      GAAP research and product development as a percentage of revenue   21 %     20 %     20 %     24 %
      Non-GAAP research and product development as a percentage of revenue   18 %     17 %     17 %     21 %
                       
      GAAP general and administrative $ 23,449     $ 19,035     $ 85,974     $ 93,452  
        Stock-based compensation expense   (6,228 )     (5,430 )     (22,361 )     (21,704 )
        Gain on lease modification   —       —       —       4,281  
        CEO separation costs, net   —       —       —       (11,520 )
        Workforce reduction costs   —       —       —       (2,106 )
      Non-GAAP general and administrative $ 17,221     $ 13,605     $ 63,613     $ 62,403  
      GAAP general and administrative as a percentage of revenue   12 %     11 %     11 %     15 %
      Non-GAAP general and administrative as a percentage of revenue   8 %     8 %     8 %     10 %
                       
      GAAP depreciation and amortization $ 5,336     $ 6,933     $ 19,545     $ 28,988  
        Amortization of stock-based compensation capitalized in software development costs   (350 )     (548 )     (1,754 )     (2,489 )
        Amortization of purchased intangibles   (1,744 )     (619 )     (2,100 )     (2,476 )
      Non-GAAP depreciation and amortization $ 3,242     $ 5,766     $ 15,691     $ 24,023  
      GAAP depreciation and amortization as a percentage of revenue   3 %     4 %     2 %     5 %
      Non-GAAP depreciation and amortization as a percentage of revenue   2 %     3 %     2 %     4 %
                                     
          Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
            2024       2023       2024       2023  
    Income from operations:              
      GAAP income from operations $ 22,958     $ 28,239     $ 135,644     $ 963  
        Stock-based compensation expense   16,024       12,432       60,327       52,364  
        Amortization of stock-based compensation capitalized in software development costs   350       548       1,754       2,489  
        Amortization of purchased intangibles   1,744       619       2,100       2,476  
        Gain on lease modification   —       —       —       (4,281 )
        CEO separation costs, net   —       —       —       11,520  
        Workforce reduction costs   —       —       —       10,278  
      Non-GAAP income from operations $ 41,076     $ 41,838     $ 199,825     $ 75,809  
                       
    Operating margin:              
      GAAP operating margin   11.3 %     16.4 %     17.1 %     0.2 %
        Stock-based compensation expense as a percentage of revenue   7.8       7.2       7.6       8.4  
        Amortization of stock-based compensation capitalized in software development costs as a percentage of revenue   0.2       0.3       0.2       0.4  
        Amortization of purchased intangibles as a percentage of revenue   0.9       0.4       0.3       0.4  
        Gain on lease modification as a percentage of revenue   —       —       —       (0.7 )
        CEO separation costs, net as a percentage of revenue   —       —       —       1.9  
        Workforce reduction costs as a percentage of revenue   —       —       —       1.8  
      Non-GAAP operating margin   20.2 %     24.3 %     25.2 %     12.2 %
                       
    Net income (loss):              
      GAAP net income $ 102,734     $ 30,268     $ 204,068     $ 2,702  
        Stock-based compensation expense   16,024       12,432       60,327       52,364  
        Amortization of stock-based compensation capitalized in software development costs   350       548       1,754       2,489  
        Amortization of purchased intangibles   1,744       619       2,100       2,476  
        Gain on lease modification   —       —       —       (4,281 )
        CEO separation costs, net   —       —       —       11,520  
        Workforce reduction costs   —       —       —       10,278  
        Income tax effect of adjustments   (86,898 )     (11,556 )     (107,372 )     (15,415 )
      Non-GAAP net income $ 33,954     $ 32,311     $ 160,877     $ 62,133  
                       
    Net income per share, basic:              
      GAAP net income per share, basic $ 2.82     $ 0.85     $ 5.63     $ 0.08  
        Non-GAAP adjustments to net income   (1.89 )     0.05       (1.19 )     1.66  
      Non-GAAP net income per share, basic $ 0.93     $ 0.90     $ 4.44     $ 1.74  
                       
    Net income per share, diluted:              
      GAAP net income per share, diluted $ 2.79     $ 0.83     $ 5.55     $ 0.07  
        Non-GAAP adjustments to net income   (1.87 )     0.05       (1.18 )     1.64  
      Non-GAAP net income per share, diluted $ 0.92     $ 0.88     $ 4.37     $ 1.71  
                       
      Weighted-average shares used in GAAP per share calculation              
        Basic   36,374       35,812       36,252       35,629  
        Diluted   36,783       36,596       36,782       36,417  
                       
      Weighted-average shares used in non-GAAP per share calculation              
        Basic   36,374       35,812       36,252       35,629  
        Diluted   36,783       36,596       36,782       36,417  
                                       
          Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
            2024       2023       2024       2023  
    Free cash flow:        
      GAAP net cash provided by operating activities $ 36,566     $ 31,183     $ 188,159     $ 60,283  
        Purchases of property and equipment   (195 )     (3,109 )     (2,016 )     (9,041 )
        Capitalized software development costs   (1,058 )     (1,431 )     (5,170 )     (4,825 )
        CEO separation costs payment   —       —       —       14,926  
        Partial lease termination payment   —       —       —       2,851  
        Severance payments for workforce reduction   —       7,624       566       9,425  
      Non-GAAP free cash flow $ 35,313     $ 34,267     $ 181,539     $ 73,619  
                       
    Free cash flow margin:            
      GAAP net cash provided by operating activities as a percentage of revenue   18.0 %     18.1 %     23.7 %     9.7 %
        Purchases of property and equipment as a percentage of revenue   (0.1 )     (1.8 )     (0.3 )     (1.4 )
        Capitalized software development costs as a percentage of revenue   (0.6 )     (0.8 )     (0.6 )     (0.8 )
        CEO separation costs payment as a percentage of revenue   —       —       —       2.4  
        Partial lease termination payment as a percentage of revenue   —       —       —       0.5  
        Severance payments for workforce reduction as a percentage of revenue   —       4.4       0.1       1.5  
      Non-GAAP free cash flow margin   17.3 %     19.9 %     22.9 %     11.9 %
       

    Statement Regarding the Use of Non-GAAP Financial Measures

    We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

    • Non-GAAP presentation of income (loss) from operations, costs and operating expenses, operating margin, net income (loss), and net income (loss) per share. These measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of stock-based compensation capitalized in software development costs, amortization of purchased intangibles, CEO separation costs, net, gain on lease modification, workforce reduction costs, and the related income tax effect of these adjustments, as applicable and described below. Non-GAAP operating margin is calculated as non-GAAP operating income (loss) from operations as a percentage of revenue.
    • Non-GAAP free cash flow. Non-GAAP free cash flow is defined as net cash from operating activities, less purchases of property and equipment, capitalization of software development costs, payments for separation costs and lease termination payments and severance payments for workforce reduction. We use free cash flow to evaluate our generation of cash from operations that is available for purposes other than capital expenditures and capitalized software development costs. Additionally, we believe that information regarding free cash flow provides investors with a perspective on the cash available to fund ongoing operations. We review cash flows generated from operations after taking into consideration capital expenditures and the capitalization of software development costs due to the fact that these expenditures are considered to be a necessary component of ongoing operations. Free cash flow margin is calculated as free cash flow as a percentage of revenue.

    We use each of these non-GAAP financial measures internally to assess and compare operating results across reporting periods, for internal budgeting and forecasting purposes, and to evaluate our financial performance. We believe these adjustments also provide useful supplemental information to investors and facilitate the analysis of our operating results and comparison of operating results across reporting periods.

    In particular, we believe these non-GAAP financial measures are useful to investors and others in assessing our operating performance due to the following factors:

    • Stock-based compensation expense and amortization of stock-based compensation capitalized in software development costs. We utilize stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of our stockholders while ensuring long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses, which include costs related to our workforce reduction, vary for reasons that are generally unrelated to financial and operational performance in any particular period.
    • Amortization of purchased intangibles. We view amortization of purchased intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.
    • CEO separation costs, net. We incurred one-time separation costs associated with our former Chief Executive Officer’s Transition and Separation Agreement, dated March 1, 2023. We have excluded these costs, as we do not consider such amounts to be part of the ongoing operation of our business.
    • Gain on lease modification. In January 2023 and June 2023, we amended our San Diego lease. We have excluded any gain related to the remeasurement of the lease liability, as we do not consider such amounts to be part of the ongoing operation of our business.
    • Workforce reduction costs. We incurred one-time severance and related personnel costs associated with our workforce reduction in the third quarter of 2023. We have excluded these costs, along with the subsequent cash payments, as we do not consider such amounts to be part of the ongoing operation of our business.
    • Income tax effects of adjustments. We utilize a fixed long-term projected tax rate in our computation of non-GAAP income tax effects to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a financial projection that excludes the direct impact of other non-GAAP adjustments. The projected rate, which we have determined to be 25%, considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. We periodically re-evaluate this tax rate, as necessary, for significant events, based on relevant tax law changes, and material changes in the forecasted geographic earnings mix.

    Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and can exclude expenses that may have a material impact on our reported financial results. As such, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the tables above. We encourage investors to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

    The MIL Network –

  • MIL-OSI: AMSC to Report Third Quarter Fiscal Year 2024 Financial Results on February 5, 2025

    Source: GlobeNewswire (MIL-OSI)

    AYER, Mass., Jan. 30, 2025 (GLOBE NEWSWIRE) — AMSC® (NASDAQ: AMSC), a leading system provider of megawatt-scale power resiliency solutions that orchestrate the rhythm and harmony of power on the grid™ and protect and expand the capability of our Navy’s fleet, announced today that it plans to release its third quarter fiscal year 2024 financial results after the market close on Wednesday, February 5, 2025. In conjunction with this announcement, AMSC management will participate in a conference call with investors and covering analysts beginning at 10:00 a.m. Eastern Time on Thursday, February 6, 2025. On this call, management will discuss the Company’s recent accomplishments, financial results, and business outlook.

    Those who wish to listen to the live or archived conference call webcast should visit the “Investors” section of the Company’s website at https://www.amsc.com. The live call can be accessed 15 minutes prior to the scheduled start time by dialing 1-844-481-2802 or 1-412-317-0675 and asking to join the AMSC call.

    A replay of the call may be accessed 2 hours following the call by dialing 1-877-344-7529 and using conference passcode 9514460.

    About AMSC (Nasdaq: AMSC)

    AMSC generates the ideas, technologies and solutions that meet the world’s demand for smarter, cleaner … better energy™. Through its Gridtec™ Solutions, AMSC provides the engineering planning services and advanced grid systems that optimize network reliability, efficiency and performance. Through its Marinetec™ Solutions, AMSC provides ship protection systems and is developing propulsion and power management solutions designed to help fleets increase system efficiencies, enhance power quality and boost operational safety. Through its Windtec® Solutions, AMSC provides wind turbine electronic controls and systems, designs and engineering services that reduce the cost of wind energy. The Company’s solutions are enhancing the performance and reliability of power networks, increasing the operational safety of navy fleets, and powering gigawatts of renewable energy globally. Founded in 1987, AMSC is headquartered near Boston, Massachusetts with operations in Asia, Australia, Europe and North America. For more information, please visit www.amsc.com.

    ©2024 AMSC. AMSC, American Superconductor, NEPSI, Neeltran, D-VAR, D-VAR VVO, Amperium, Gridtec, Marinetec, Windtec, Orchestrate the Rhythm and Harmony of Power on the Grid and Smarter, Cleaner … Better Energy are trademarks or registered trademarks of American Superconductor Corporation. All other brand names, product names, trademarks, or service marks belong to their respective holders.

    The MIL Network –

  • MIL-OSI: Financial Institutions, Inc. Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, N.Y., Jan. 30, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the fourth quarter and year ended December 31, 2024.

    These results reflect the Company’s previously disclosed balance sheet restructuring plan, which was executed in December following its successful and oversubscribed underwritten public common stock offering. As part of the restructuring, the Bank sold $653.5 million of available-for-sale (“AFS”) investment securities, which resulted in a pre-tax loss on the sale of securities of $100.2 million in the fourth quarter. The after-tax impact of the loss of approximately $75 million was entirely funded by a portion of the capital raised through the Company’s equity offering that was downstreamed to the Bank. The net proceeds from the pre-tax sale of the securities were reinvested into higher yielding, agency wrapped investment securities.

    The Company reported a net loss of $65.7 million in the fourth quarter of 2024, compared to net income of $13.5 million in the third quarter of 2024 and net income of $9.8 million in the fourth quarter of 2023. After preferred dividends, net loss available to common shareholders was $66.1 million, or ($4.02) per diluted share, in the fourth quarter of 2024, compared to net income of $13.1 million, or $0.84 per diluted share, in the third quarter of 2024, and net income of $9.4 million, or $0.61 per diluted share, in the fourth quarter of 2023. The Company recorded a provision for credit losses of $6.5 million in the current quarter, compared to $3.1 million in the linked quarter and $5.3 million in the prior year quarter.

    The Company reported a full year 2024 net loss of $24.5 million, compared to net income of $50.3 million in 2023. After preferred dividends, net loss available to common shareholders was $26.0 million, or ($1.66) per diluted share, for 2024 compared to net income available to common shareholders of $48.8 million, or $3.15 per diluted share, in 2023. Provision for credit losses was $6.2 million in 2024 and $13.7 million in 2023.

    Fourth Quarter and Full Year 2024 Key Results:

    • Net interest margin was up to 2.91% for the fourth quarter, up two basis points from the linked quarter and up 13 basis points from the year-ago quarter. Full year net interest margin of 2.86% compares to 2.94% in 2023.
    • Net interest income of $41.6 million in the fourth quarter of 2024 increased $952 thousand, or 2.3%, and $1.7 million, or 4.4%, from the linked and year-ago quarters, respectively. Full year net interest income of $163.6 million was down $2.1 million, or 1.3%, from 2023.
    • Total loans were $4.48 billion at December 31, 2024, reflecting an increase of $76.2 million, or 1.7%, during the quarter and an increase of $17.1 million, or 0.4%, during the year. Commercial loans totaled $2.86 billion at December 31, 2024, reflecting an increase of $104.8 million, or 3.8%, during the quarter and an increase of $123.9 million, or 4.5%, during the year.
    • Total deposits were $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024, primarily due to seasonal public deposit outflows, and down $108.2 million, or 2.1%, from the prior year end, driven by a reduction in brokered deposits.
    • Provision for credit losses of $6.5 million in the current quarter was driven by a combination of factors, including the impact of loan growth during the period, an increase in net charge-offs relative to the linked quarter, and higher qualitative factors overall.
    • Allowance for credit losses on loans to total loans was 1.07% at year-end 2024, compared to 1.01% at September 30, 2024 and 1.14% one year prior.
    • The Company reported stable credit quality metrics, as measured by annual net charge-offs to average loans of 0.20% for both 2024 and 2023.

    “Our Company navigated an incredibly dynamic 2024, rising above challenges to execute strategic initiatives that position us well not only heading into 2025, but for years to come. Our successful equity offering in the fourth quarter enabled us to undertake a balance sheet restructuring that is expected to contribute meaningfully to earnings, net interest margin, efficiency ratio, return on average assets and the quality of capital moving forward,” said President and Chief Executive Officer Martin K. Birmingham. “We believe these measures will allow us to accelerate operating performance with minimal downside risk, supporting our plans for continued organic growth.”

    “While loan growth was modest in 2024, in part reflecting the intentional reduction of our consumer indirect balances that partially offset commercial growth of 4.5% during the year, we remain enthused about organic growth opportunities in our core markets, as we finished 2024 with a strong fourth quarter from a commercial loan production standpoint, and we remain keenly focused on driving credit-disciplined loan growth to ensure the continued strength and stability of our asset quality metrics.”

    Chief Financial Officer and Treasurer W. Jack Plants II added, “As a result of our strategic actions through the course of the year, from the sale of our insurance subsidiary in April, to our successful and oversubscribed equity offering in December, our regulatory and tangible capital positions improved meaningfully and core operations have strong momentum to start 2025. We reported a common equity tier 1 ratio of 10.88%, up 145 basis points, and a tangible common equity ratio of 8.40%, up 240 basis points, both from year-end 2023. The upsizing of our equity offering provides us ample dry powder that we are committed to deploying thoughtfully, in a way that supports our long-term value creation objectives.”

    Capital Raise and Subsequent Balance Sheet Restructuring

    As previously disclosed, the Company completed an underwritten common stock offering on December 13, 2024. Through the public offering, the Company sold 4,600,000 shares of common stock, 600,000 shares of which were sold pursuant to the exercise of the underwriters’ overallotment option. Net proceeds from the capital raise were approximately $108.5 million.

    As expected, a portion of the proceeds was used to fund losses associated with a strategic investment securities restructuring. In late December, the Company completed its previously disclosed balance sheet restructuring plan, through which the Bank sold $653.5 million of AFS securities with a weighted average book yield of 1.74% for a pre-tax loss of $100.2 million. The after-tax impact of the loss was approximately $75 million. The Bank utilized net proceeds from the sale of securities to purchase higher-yielding agency wrapped investment securities with a face value of $566.2 million and a weighted average book yield of 5.16%, coupled with an additional $76.4 million of agency wrapped securities with a weighted average yield of 5.45%. Following the transactions, the AFS portfolio has an average duration of approximately 6.2 years and a tax equivalent yield of 4.25%. The cumulative tangible book value earnback from the restructuring is expected to be approximately 3.75 years.

    Net Interest Income and Net Interest Margin

    Net interest income was $41.6 million for the fourth quarter of 2024, an increase of $1.0 million from the third quarter of 2024 and an increase of $1.7 million from the fourth quarter of 2023.

    Average interest-earning assets for the current quarter were $5.72 billion, an increase of $104.1 million from the third quarter of 2024 due to a $72.1 million increase in the average balance of Federal Reserve interest-earning cash, a $19.2 million increase in average loans and a $12.8 million increase in the average balance of investment securities. Average interest-earning assets for the current quarter were $10.9 million lower than the fourth quarter of 2023 due to a $39.9 million decrease in the average balance of investment securities, partially offset by a $19.0 million increase in the average balance of Federal Reserve interest-earning cash and a $10.0 million increase in average loans.

    Average interest-bearing liabilities for the current quarter were $4.48 billion, an increase of $76.0 million from the third quarter of 2024, primarily due to a $65.8 million increase in average interest-bearing demand deposits, a $53.4 million increase in average savings and money market deposits, and a $29.3 million increase in average time deposits, partially offset by a $72.6 million decrease in average short-term borrowings. Average interest-bearing liabilities for the fourth quarter of 2024 were $18.3 million lower than the year-ago quarter, due to a $56.5 million decrease in average savings and money market deposits, a $27.8 million decrease in average borrowings, and a $23.3 million decrease in average interest-bearing demand deposits, partially offset by a $89.2 million increase in average time deposits.

    Net interest margin was 2.91% in the current quarter as compared to 2.89% in the third quarter of 2024 and 2.78% in the fourth quarter of 2023. The linked quarter expansion was primarily due to a reduction in funding costs that outpaced a reduction in the average yield on interest-earning assets, reflecting the Federal Reserve interest rate cuts in the latter part of 2024 and the repricing of both loans and deposits, along with a reduction in both the average balance and average rate on short-term borrowings. Expansion from the prior year quarter was due to an increase in the average yield on interest-earning assets, as the overall cost of funds remained flat.

    Net interest income was $163.6 million for the full year 2024, down $2.1 million from 2023. Net interest margin was 2.86% for the full year 2024, compared to 2.94% for 2023.

    Noninterest (Loss) Income

    The Company reported a loss for noninterest income of $91.0 million for the fourth quarter of 2024, compared to noninterest income of $9.4 million in the third quarter of 2024 and $15.4 million in the fourth quarter of 2023.

    • A net loss on investment securities of $100.1 million was recognized in the fourth quarter of 2024 compared to a net loss of $3.6 million in the fourth quarter of 2023, due to previously disclosed securities portfolio restructurings in both periods. 
    • Investment advisory income of $2.6 million was $242 thousand lower than the third quarter of 2024 and $114 thousand lower than the fourth quarter of 2023.
    • Given the previously disclosed insurance subsidiary asset sale on April 1, 2024, the Company recorded insurance income of $3 thousand in both the current and linked quarters, and $1.6 million in the year-ago quarter.
    • Income from company owned life insurance of $1.4 million was flat with the third quarter of 2024 and $7.7 million lower than the fourth quarter of 2023, due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023.
    • Income from investments in limited partnerships of $837 thousand was $437 thousand higher than the third quarter of 2024 and $165 thousand higher than the fourth quarter of 2023. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments.

    The Company recorded a loss for noninterest income of $46.7 million for the full year 2024, compared to income of $48.2 million in 2023.

    • A net loss on investment securities of $100.1 million was recognized in 2024, compared to a net loss of $3.6 million in 2023, due to the previously disclosed securities portfolio restructurings in both years.
    • The Company’s sale of the assets of its insurance subsidiary generated a $13.7 million gain in 2024. The $4.6 million decline in insurance income year-over-year was also attributable to the transaction.
    • Income from company owned life insurance of $5.5 million was $6.6 million lower than in 2023 due to a normalized crediting rate associated with the separate account policies purchased in the fourth quarter of 2023.

    Noninterest Expense

    Noninterest expense was $36.4 million in the fourth quarter of 2024, compared to $32.5 million in the third quarter of 2024 and $35.0 million in the fourth quarter of 2023, with the increases over both the linked and prior year periods primarily driven by nonrecurring expenses.

    • Salaries and employee benefits expense of $17.2 million was $1.3 million higher than the third quarter of 2024 and $683 thousand lower than the fourth quarter of 2023. The increase from the linked quarter was primarily due to a $1.3 million nonrecurring settlement accounting adjustment in the Company’s pension plan. The year-over-year decrease was primarily due to the timing of the insurance subsidiary asset sale and the Company’s previously disclosed fourth quarter 2023 organizational changes.
    • Computer and data processing expense of $6.6 million was $1.3 million higher than the third quarter of 2024 and $1.0 million higher than the fourth quarter of 2023, due to nonrecurring project related expenses.
    • FDIC assessments expense of $1.6 million was $459 thousand higher than the linked quarter and $235 thousand higher than the year-ago quarter, primarily due to an increase in the FDIC assessment rate due to the securities loss recognized in the fourth quarter of 2024.
    • Other expense of $4.2 million was up $837 thousand and $519 thousand from the linked and year-ago quarters, respectively. The increases from both the linked and year-ago periods were due in part to New York State capital base tax, while the timing of charitable contributions also contributed to the linked quarter variance.

    Noninterest expense was $155.9 million for the full year 2024, $18.7 million higher than 2023, driven by the Company’s previously disclosed deposit-related fraud event.

    • Salaries and employee benefits expense of $66.1 million decreased $5.8 million from the prior year, reflective of both the timing of the insurance subsidiary asset sale and previously disclosed fourth quarter 2023 organizational changes.
    • Computer and data processing expense of $22.7 million was $2.6 million higher than 2023, primarily due to the Company’s investments in data efficiency and marketing technology.
    • Professional services expense of $7.7 million was $2.4 million higher than 2023, primarily attributable to legal expenses associated with the Company’s previously disclosed fraud event.
    • Deposit-related charged off items totaled $20.3 million in 2024, up $19.1 million from the prior year, as a result of the previously disclosed fraud matter.
    • Other expense of $15.3 million was up $1.0 million from 2023, primarily due to the previously mentioned New York State capital base tax.

    Income Taxes

    Income tax benefit was $26.6 million for the fourth quarter of 2024, reflective of the net loss reported for the period, compared to expense of $1.1 million in the third quarter of 2024, and expense of $5.2 million in the fourth quarter of 2023. During the fourth quarter of 2023, the Company incurred additional taxes of approximately $5.4 million associated with the capital gains of the previously mentioned company owned life insurance surrender coupled with a 10% modified endowment contract penalty that is typical of general account surrenders. The Company also recognized federal and state tax benefits related to tax credit investments placed in service and/or amortized during the fourth quarter of 2024, third quarter of 2024, and fourth quarter of 2023, resulting in income tax expense reductions of $1.2 million, $1.3 million, and $901 thousand, respectively.

    The effective tax rate was -28.8% for the fourth quarter of 2024, 7.4% for the third quarter of 2024, and 34.5% for the fourth quarter of 2023. The effective tax rate fluctuates on a quarterly basis primarily due to the level of pre-tax (loss) earnings and may differ from statutory rates because of interest income from tax-exempt securities, earnings on company owned life insurance and the impact of tax credit investments. The effective tax rate for full year 2024 was -45.7%, reflecting the impact of the previously mentioned securities transaction loss, compared to 20.3% in 2023.

    Balance Sheet and Capital Management

    Total assets were $6.11 billion at December 31, 2024, down $45.1 million from September 30, 2024, and down $49.7 million from December 31, 2023.

    Investment securities were $1.03 billion at December 31, 2024, up $19.0 million from September 30, 2024, and down $8.8 million from December 31, 2023.

    Total loans were $4.48 billion at December 31, 2024, an increase of $76.2 million, or 1.7%, from September 30, 2024, and an increase of $17.1 million, or 0.4%, from December 31, 2023.

    • Commercial business loans totaled $665.3 million, up $10.8 million, or 1.7%, from September 30, 2024, and down $70.4 million, or 9.6%, from December 31, 2023.
    • Commercial mortgage loans totaled $2.20 billion, up $94.0 million, or 4.5%, from September 30, 2024, and up $194.3 million, or 9.7%, from December 31, 2023.
    • Residential real estate loans totaled $650.2 million, up $2.0 million, or 0.3%, from September 30, 2024, and up $384 thousand, or 0.1%, from December 31, 2023.
    • Consumer indirect loans totaled $845.8 million, down $28.9 million, or 3.3%, from September 30, 2024, and down $103.1 million, or 10.9%, from December 31, 2023.

    Total deposits were $5.10 billion at December 31, 2024, down $201.9 million, or 3.8%, from September 30, 2024, and down $108.2 million, or 2.1%, from December 31, 2023. The decrease from September 30, 2024 was primarily the result of a reduction in brokered deposits between periods as well as seasonal outflows of public and reciprocal deposits. The decrease from December 31, 2023 was driven by a reduction in brokered deposits. Public deposit balances represented 21% of total deposits at December 31, 2024, 22% at September 30, 2024 and 20% at December 31, 2023.

    Short-term borrowings were $99.0 million at December 31, 2024, compared to $55.0 million at September 30, 2024 and $185.0 million at December 31, 2023. Short-term borrowings and brokered deposits have historically been utilized to manage the seasonality of public deposits.

    Shareholders’ equity was $586.1 million at December 31, 2024, compared to $500.3 million at September 30, 2024, and $454.8 million at December 31, 2023. Both the linked quarter and year-over-year increases were primarily driven by additional paid-in-capital resulting from the common stock capital raise executed in the fourth quarter of 2024 and decreases in accumulated other comprehensive loss between periods following the investment securities restructuring.

    Common book value per share was $28.33 at December 31, 2024, a decrease of $2.89, or 9.3%, from $31.22 at September 30, 2024, and a decrease of $0.07, or 0.2%, from $28.40 at December 31, 2023. Tangible common book value per share(1) was $25.31 at December 31, 2024, a decrease of $1.97, or 7.2%, from $27.28 at September 30, 2024, and an increase of $1.62, or 6.8%, from $23.69 at December 31, 2023. Per share data variances were attributable to the higher number of shares outstanding at year-end 2024 as a result of the equity offering. The common equity to assets ratio was 9.31% at December 31, 2024, compared to 7.85% at September 30, 2024, and 7.10% at December 31, 2023. Tangible common equity to tangible assets(1), or the TCE ratio, was 8.40%, 6.93% and 6.00% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The increases in both ratios from the comparable dates were attributable to the aforementioned additional capital and the decrease in accumulated other comprehensive loss.

    During the fourth quarter of 2024, the Company declared a common stock dividend of $0.30 per common share, consistent with the linked and prior year quarters.

    The Company’s regulatory capital ratios at December 31, 2024 improved in comparison to the prior quarter and prior year due in part to the fourth quarter capital raise. All ratios continued to exceed all regulatory capital requirements to be considered well capitalized.

    • Leverage Ratio was 9.43% compared to 8.98% and 8.18% at September 30, 2024, and December 31, 2023, respectively.
    • Common Equity Tier 1 Capital Ratio was 10.88% compared to 10.28% and 9.43% at September 30, 2024, and December 31, 2023, respectively.
    • Tier 1 Capital Ratio was 11.21% compared to 10.62% and 9.76% at September 30, 2024, and December 31, 2023, respectively.
    • Total Risk-Based Capital Ratio was 13.60% compared to 12.95% and 12.13% at September 30, 2024, and December 31, 2023, respectively.

    Credit Quality

    Non-performing loans were $41.4 million, or 0.92% of total loans, at December 31, 2024, as compared to $40.7 million, or 0.93% of total loans, at September 30, 2024, and $26.7 million, or 0.60% of total loans, at December 31, 2023. The increase in non-performing loans from December 31, 2023 was primarily driven by one commercial loan relationship that was placed on nonaccrual during the third quarter of 2024. Net charge-offs were $2.8 million, representing 0.25% of average loans on an annualized basis, for the current quarter, as compared to net charge-offs of $1.7 million, or an annualized 0.15% of average loans, in the third quarter of 2024 and net charge-offs of $4.2 million, or an annualized 0.38%, in the fourth quarter of 2023.

    At December 31, 2024, the allowance for credit losses on loans to total loans ratio was 1.07%, compared to 1.01% at September 30, 2024 and 1.14% at December 31, 2023.

    Provision for credit losses was $6.5 million in the current quarter, compared to $3.1 million in the linked quarter and $5.3 million in the prior year quarter. Provision for credit losses on loans was $6.1 million in the current quarter, compared to $2.4 million in the third quarter of 2024 and $5.7 million in the fourth quarter of 2023. The allowance for unfunded commitments, also included in provision for credit losses as required by the current expected credit loss standard (“CECL”), totaled a provision of $321 thousand in the fourth quarter of 2024, a provision of $713 thousand in the third quarter of 2024, and a credit of $403 thousand in the fourth quarter of 2023. The provision for credit losses for the fourth quarter of 2024 was driven by a combination of factors, including the impact of loan growth during the quarter, an increase in net charge-offs as compared to the third quarter, and higher qualitative factors overall.

    The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was 116% at December 31, 2024, 110% at September 30, 2024, and 192% at December 31, 2023, with the year-over-year decrease reflective of the higher level of nonperforming loans reported at year-end.

    Subsequent Events

    The Company is required, under generally accepted accounting principles, to evaluate subsequent events through the filing of its consolidated financial statements for the year ended December 31, 2024, in its Annual Report on Form 10-K. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2024, and will adjust amounts preliminarily reported, if necessary.

    Conference Call

    The Company will host an earnings conference call and audio webcast on January 31, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 393817. The webcast replay will be available on the Company’s website for at least 30 days.

    About Financial Institutions, Inc.

    Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.1 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

    Non-GAAP Financial Information

    In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.

    The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    Safe Harbor Statement

    This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “believe,” “anticipate,” “continue,” “estimate,” “expect,” “focus,” “forecast,” “intend,” “may,” “plan,” “preliminary,” “should,” “target” or “will.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: additional information regarding the deposit fraudulent activity; changes in interest rates; inflation; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company’s customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company’s compliance with regulatory requirements; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

    (1) See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.

    For additional information contact:
    Kate Croft
    Director of Investor and External Relations
    (716) 817-5159
    klcroft@five-starbank.com

     
    FINANCIAL INSTITUTIONS, INC.
    Selected Financial Information (Unaudited)
    (Amounts in thousands, except per share amounts)
        2024     2023  
    SELECTED BALANCE SHEET DATA:   December 31,     September 30,     June 30,     March 31,     December 31,  
    Cash and cash equivalents   $ 87,321     $ 249,569     $ 146,347     $ 237,038     $ 124,442  
    Investment securities:                              
    Available for sale     911,105       886,816       871,635       923,761       887,730  
    Held-to-maturity, net     116,001       121,279       128,271       143,714       148,156  
    Total investment securities     1,027,106       1,008,095       999,906       1,067,475       1,035,886  
    Loans held for sale     2,280       2,495       2,099       504       1,370  
    Loans:                              
    Commercial business     665,321       654,519       713,947       707,564       735,700  
    Commercial mortgage–construction     582,619       533,506       518,013       528,694       493,003  
    Commercial mortgage–multifamily     470,954       467,527       463,171       453,027       452,155  
    Commercial mortgage–non-owner occupied     857,987       814,392       814,953       798,637       788,515  
    Commercial mortgage–owner occupied     288,036       290,216       289,733       264,698       271,646  
    Residential real estate loans     650,206       648,241       647,675       648,160       649,822  
    Residential real estate lines     75,552       76,203       75,510       75,668       77,367  
    Consumer indirect     845,772       874,651       894,596       920,428       948,831  
    Other consumer     42,757       43,734       43,870       45,170       45,100  
    Total loans     4,479,204       4,402,989       4,461,468       4,442,046       4,462,139  
    Allowance for credit losses–loans     48,041       44,678       43,952       43,075       51,082  
    Total loans, net     4,431,163       4,358,311       4,417,516       4,398,971       4,411,057  
    Total interest-earning assets     5,602,570       5,666,972       5,709,148       5,857,616       5,702,904  
    Goodwill and other intangible assets, net     60,758       60,867       60,979       72,287       72,504  
    Total assets     6,111,187       6,156,317       6,131,772       6,298,598       6,160,881  
    Deposits:                              
    Noninterest-bearing demand     950,351       978,660       939,346       972,801       1,010,614  
    Interest-bearing demand     705,195       793,996       711,580       798,831       713,158  
    Savings and money market     1,904,013       2,027,181       2,007,256       2,064,539       2,084,444  
    Time deposits     1,545,172       1,506,764       1,475,139       1,560,586       1,404,696  
    Total deposits     5,104,731       5,306,601       5,133,321       5,396,757       5,212,912  
    Short-term borrowings     99,000       55,000       202,000       133,000       185,000  
    Long-term borrowings, net     124,842       124,765       124,687       124,610       124,532  
    Total interest-bearing liabilities     4,405,912       4,507,706       4,520,662       4,681,566       4,511,830  
    Shareholders’ equity     586,108       500,342       467,667       445,734       454,796  
    Common shareholders’ equity     568,823       483,050       450,375       428,442       437,504  
    Tangible common equity (1)     508,065       422,183       389,396       356,155       365,000  
    Accumulated other comprehensive loss   $ (52,604 )   $ (102,029 )   $ (125,774 )   $ (126,264 )   $ (119,941 )
                                   
    Common shares outstanding     20,077       15,474       15,472       15,447       15,407  
    Treasury shares     623       625       627       653       692  
    CAPITAL RATIOS AND PER SHARE DATA:                              
    Leverage ratio     9.43 %     8.98 %     8.61 %     8.03 %     8.18 %
    Common equity Tier 1 capital ratio     10.88 %     10.28 %     10.03 %     9.43 %     9.43 %
    Tier 1 capital ratio     11.21 %     10.62 %     10.36 %     9.76 %     9.76 %
    Total risk-based capital ratio     13.60 %     12.95 %     12.65 %     12.04 %     12.13 %
    Common equity to assets     9.31 %     7.85 %     7.34 %     6.80 %     7.10 %
    Tangible common equity to tangible assets (1)     8.40 %     6.93 %     6.41 %     5.72 %     6.00 %
                                   
    Common book value per share   $ 28.33     $ 31.22     $ 29.11     $ 27.74     $ 28.40  
    Tangible common book value per share (1)   $ 25.31     $ 27.28     $ 25.17     $ 23.06     $ 23.69  
                                             
    1.      See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
     
     
    FINANCIAL INSTITUTIONS, INC.
    Selected Financial Information (Unaudited)
    (Amounts in thousands, except per share amounts)
        Year Ended     2024     2023  
        December 31,     Fourth     Third     Second     First     Fourth  
    SELECTED INCOME STATEMENT DATA:   2024     2023     Quarter     Quarter     Quarter     Quarter     Quarter  
    Interest income   $ 313,231     $ 286,133     $ 78,119     $ 77,911     $ 78,788     $ 78,413     $ 76,547  
    Interest expense     149,642       120,418       36,486       37,230       37,595       38,331       36,661  
    Net interest income     163,589       165,715       41,633       40,681       41,193       40,082       39,886  
    Provision (benefit) for credit losses     6,150       13,681       6,461       3,104       2,041       (5,456 )     5,271  
    Net interest income after provision (benefit) for credit losses     157,439       152,034       35,172       37,577       39,152       45,538       34,615  
    Noninterest (loss) income:                                          
    Service charges on deposits     4,233       4,625       1,074       1,103       979       1,077       1,168  
    Insurance income     2,144       6,708       3       3       4       2,134       1,615  
    Card interchange income     7,855       8,220       2,045       1,900       2,008       1,902       2,080  
    Investment advisory     10,713       10,955       2,555       2,797       2,779       2,582       2,669  
    Company owned life insurance     5,487       12,106       1,425       1,404       1,360       1,298       9,132  
    Investments in limited partnerships     2,382       1,783       837       400       803       342       672  
    Loan servicing     716       479       295       88       158       175       84  
    Income (loss) from derivative instruments, net     726       1,350       (37 )     212       377       174       (68 )
    Net gain on sale of loans held for sale     618       566       186       220       124       88       217  
    Net loss on investment securities     (100,055 )     (3,576 )     (100,055 )     –       –       –       (3,576 )
    Net gain (loss) on other assets     13,614       (6 )     (19 )     138       13,508       (13 )     (37 )
    Net (loss) gain on tax credit investments     (775 )     (252 )     (636 )     (170 )     406       (375 )     (207 )
    Other     5,661       5,286       1,291       1,345       1,508       1,517       1,619  
    Total noninterest (loss) income     (46,681 )     48,244       (91,036 )     9,440       24,014       10,901       15,368  
    Noninterest expense:                                          
    Salaries and employee benefits     66,126       71,889       17,159       15,879       15,748       17,340       17,842  
    Occupancy and equipment     14,361       14,798       3,791       3,370       3,448       3,752       3,739  
    Professional services     7,702       5,259       1,571       1,965       1,794       2,372       1,415  
    Computer and data processing     22,689       20,110       6,608       5,353       5,342       5,386       5,562  
    Supplies and postage     1,935       1,873       504       519       437       475       455  
    FDIC assessments     5,284       4,902       1,551       1,092       1,346       1,295       1,316  
    Advertising and promotions     1,573       1,926       465       371       440       297       370  
    Amortization of intangibles     552       910       109       112       114       217       221  
    Deposit-related charged-off items     20,341       1,201       354       410       398       19,179       223  
    Restructuring charges     35       114       35       –       –       –       188  
    Other     15,286       14,243       4,235       3,398       3,953       3,700       3,716  
    Total noninterest expense     155,884       137,225       36,382       32,469       33,020       54,013       35,047  
    (Loss) income before income taxes     (45,126 )     63,053       (92,246 )     14,548       30,146       2,426       14,936  
    Income tax (benefit) expense     (20,604 )     12,789       (26,559 )     1,082       4,517       356       5,156  
    Net (loss) income     (24,522 )     50,264       (65,687 )     13,466       25,629       2,070       9,780  
    Preferred stock dividends     1,459       1,459       365       365       364       365       365  
    Net (loss) income available to common shareholders   $ (25,981 )   $ 48,805     $ (66,052 )   $ 13,101     $ 25,265     $ 1,705     $ 9,415  
    FINANCIAL RATIOS:                                          
    Earnings (loss) per share–basic   $ (1.66 )   $ 3.17     $ (4.02 )   $ 0.85     $ 1.64     $ 0.11     $ 0.61  
    Earnings (loss) per share–diluted   $ (1.66 )   $ 3.15     $ (4.02 )   $ 0.84     $ 1.62     $ 0.11     $ 0.61  
    Cash dividends declared on common stock   $ 1.20     $ 1.20     $ 0.30     $ 0.30     $ 0.30     $ 0.30     $ 0.30  
    Common dividend payout ratio     -72.29 %     37.85 %     -7.46 %     35.29 %     18.29 %     272.73 %     49.18 %
    Dividend yield (annualized)     4.40 %     5.63 %     4.37 %     4.69 %     6.25 %     6.41 %     5.59 %
    Return on average assets (annualized)     -0.40 %     0.83 %     -4.27 %     0.89 %     1.68 %     0.13 %     0.63 %
    Return on average equity (annualized)     -5.15 %     11.86 %     -50.51 %     11.08 %     22.93 %     1.83 %     9.28 %
    Return on average common equity (annualized)     -5.66 %     12.01 %     -52.54 %     11.18 %     23.51 %     1.57 %     9.31 %
    Return on average tangible common equity (annualized) (1)     -6.58 %     14.64 %     -59.82 %     12.87 %     27.51 %     1.88 %     11.37 %
    Efficiency ratio (2)     71.75 %     62.96 %     71.74 %     64.70 %     50.58 %     105.77 %     59.48 %
    Effective tax rate     -45.7 %     20.3 %     -28.8 %     7.4 %     15.0 %     18.7 %     34.5 %
                                                             
    1.      See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
    2.      The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.
     
     
    FINANCIAL INSTITUTIONS, INC.
    Selected Financial Information (Unaudited)
    (Amounts in thousands)
        Year Ended     2024     2023  
        December 31,     Fourth     Third     Second     First     Fourth  
    SELECTED AVERAGE BALANCES:   2024     2023     Quarter     Quarter     Quarter     Quarter     Quarter  
    Federal funds sold and interest-earning deposits   $ 115,635     $ 80,415     $ 121,530     $ 49,476     $ 134,123     $ 158,075     $ 102,487  
    Investment securities (1)     1,171,083       1,249,928       1,159,863       1,147,052       1,194,808       1,182,993       1,199,766  
    Loans:                                          
    Commercial business     689,585       698,861       658,038       673,830       704,272       722,720       702,222  
    Commercial mortgage–construction     509,461       364,967       558,200       513,768       495,177       470,115       438,768  
    Commercial mortgage–multifamily     465,244       461,954       458,691       467,801       466,501       468,028       467,226  
    Commercial mortgage–non-owner occupied     837,495       837,860       843,034       826,275       837,209       843,526       840,226  
    Commercial mortgage–owner occupied     270,646       243,574       288,502       285,061       260,495       248,172       249,013  
    Residential real estate loans     648,604       612,767       649,549       647,844       648,099       648,921       640,955  
    Residential real estate lines     75,951       76,350       76,164       75,671       75,575       76,396       76,741  
    Consumer indirect     894,720       997,538       858,854       881,133       905,056       934,380       965,571  
    Other consumer     45,790       28,741       43,333       43,789       44,552       51,535       43,664  
    Total loans     4,437,496       4,322,612       4,434,365       4,415,172       4,436,936       4,463,793       4,424,386  
    Total interest-earning assets     5,724,214       5,652,955       5,715,758       5,611,700       5,765,867       5,804,861       5,726,639  
    Goodwill and other intangible assets, net     64,247       72,965       60,824       60,936       62,893       72,409       72,628  
    Total assets     6,129,414       6,025,383       6,121,385       6,018,390       6,153,429       6,225,760       6,127,190  
    Interest-bearing liabilities:                                          
    Interest-bearing demand     734,731       818,541       757,221       691,412       741,006       749,512       780,546  
    Savings and money market     2,012,215       1,781,776       1,992,360       1,938,935       2,036,772       2,081,815       2,048,822  
    Time deposits     1,511,507       1,477,596       1,545,071       1,515,745       1,505,665       1,479,133       1,455,867  
    Short-term borrowings     126,192       186,910       56,513       129,130       140,110       179,747       84,587  
    Long-term borrowings, net     124,679       121,903       124,795       124,717       124,640       124,562       124,484  
    Total interest-bearing liabilities     4,509,324       4,386,726       4,475,960       4,399,939       4,548,193       4,614,769       4,494,306  
    Noninterest-bearing demand deposits     953,341       1,030,648       947,127       952,970       950,819       962,522       1,006,465  
    Total deposits     5,211,794       5,108,561       5,241,779       5,099,062       5,234,262       5,272,982       5,291,700  
    Total liabilities     5,652,983       5,601,697       5,603,999       5,535,112       5,703,929       5,770,725       5,708,861  
    Shareholders’ equity     476,431       423,686       517,386       483,278       449,500       455,035       418,329  
    Common equity     459,139       406,394       500,096       465,986       432,208       437,743       401,037  
    Tangible common equity (2)     394,892       333,429       439,272       405,050       369,315       365,334       328,409  
    Common shares outstanding:                                          
    Basic     15,683       15,376       16,415       15,464       15,444       15,403       15,393  
    Diluted     15,683       15,475       16,415       15,636       15,556       15,543       15,511  
    SELECTED AVERAGE YIELDS:
    (Tax equivalent basis)    		                                          
    Investment securities (3)     2.20 %     1.92 %     2.38 %     2.14 %     2.17 %     2.09 %     2.03 %
    Loans     6.36 %     5.98 %     6.28 %     6.42 %     6.40 %     6.33 %     6.21 %
    Total interest-earning assets     5.48 %     5.07 %     5.45 %     5.53 %     5.50 %     5.43 %     5.32 %
    Interest-bearing demand     1.18 %     0.87 %     1.34 %     1.05 %     1.18 %     1.11 %     1.26 %
    Savings and money market     3.03 %     2.32 %     2.94 %     3.07 %     3.01 %     3.08 %     3.01 %
    Time deposits     4.66 %     3.98 %     4.53 %     4.72 %     4.72 %     4.68 %     4.57 %
    Short-term borrowings     2.67 %     3.69 %     0.15 %     2.64 %     2.75 %     3.42 %     1.38 %
    Long-term borrowings, net     5.03 %     5.06 %     5.03 %     5.03 %     5.02 %     5.02 %     5.05 %
    Total interest-bearing liabilities     3.32 %     2.75 %     3.24 %     3.37 %     3.32 %     3.34 %     3.24 %
    Net interest rate spread     2.16 %     2.32 %     2.21 %     2.16 %     2.18 %     2.09 %     2.08 %
    Net interest margin     2.86 %     2.94 %     2.91 %     2.89 %     2.87 %     2.78 %     2.78 %
                                                             
    1.      Includes investment securities at adjusted amortized cost.
    2.      See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
    3.      The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%.
     
     
    FINANCIAL INSTITUTIONS, INC.
    Selected Financial Information (Unaudited)
    (Amounts in thousands)
        Year Ended     2024     2023  
        December 31,     Fourth     Third     Second     First     Fourth  
    ASSET QUALITY DATA:   2024     2023     Quarter     Quarter     Quarter     Quarter     Quarter  
    Allowance for Credit Losses – Loans                                          
    Beginning balance   $ 51,082     $ 45,413     $ 44,678     $ 43,952     $ 43,075     $ 51,082     $ 49,630  
    Net loan charge-offs (recoveries):                                          
    Commercial business     98       (109 )     131       (3 )     7       (37 )     (50 )
    Commercial mortgage–construction     –       980       –       –       –       –       980  
    Commercial mortgage–multifamily     12       –       –       13       –       –       –  
    Commercial mortgage–non-owner occupied     (8 )     (875 )     (5 )     (1 )     (1 )     (1 )     13  
    Commercial mortgage–owner occupied     (4 )     (70 )     (1 )     (2 )     (2 )     –       –  
    Residential real estate loans     95       89       (4 )     (1 )     96       4       22  
    Residential real estate lines     –       41       –       –       –       –       –  
    Consumer indirect     7,927       7,595       2,557       1,553       844       2,973       3,174  
    Other consumer     566       893       100       106       178       182       82  
    Total net charge-offs (recoveries)     8,686       8,544       2,778       1,665       1,122       3,121       4,221  
    Provision for credit losses – loans     5,645       14,213       6,141       2,391       1,999       (4,886 )     5,673  
    Ending balance   $ 48,041     $ 51,082     $ 48,041     $ 44,678     $ 43,952     $ 43,075     $ 51,082  
                                               
    Net charge-offs (recoveries) to average loans (annualized):                                          
    Commercial business     0.01 %     -0.02 %     0.80 %     0.00 %     0.00 %     -0.02 %     -0.03 %
    Commercial mortgage–construction     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.20 %
    Commercial mortgage–multifamily     0.00 %     0.00 %     0.00 %     0.01 %     0.00 %     0.00 %     0.00 %
    Commercial mortgage–non-owner occupied     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Commercial mortgage–owner occupied     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Residential real estate loans     0.01 %     0.01 %     0.00 %     0.00 %     0.06 %     0.00 %     0.01 %
    Residential real estate lines     0.00 %     0.05 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Consumer indirect     0.89 %     0.76 %     1.18 %     0.70 %     0.38 %     1.28 %     1.30 %
    Other consumer     1.23 %     3.11 %     0.91 %     0.95 %     1.62 %     1.41 %     0.75 %
    Total loans     0.20 %     0.20 %     0.25 %     0.15 %     0.10 %     0.28 %     0.38 %
                                               
    Supplemental information (1)                                          
    Non-performing loans:                                          
    Commercial business   $ 5,609     $ 5,664     $ 5,609     $ 5,752     $ 5,680     $ 5,956     $ 5,664  
    Commercial mortgage–construction     20,280       5,320       20,280       20,280       4,970       5,320       5,320  
    Commercial mortgage–multifamily     –       189       –       71       183       185       189  
    Commercial mortgage–non-owner occupied     4,773       4,651       4,773       4,903       4,919       4,929       4,651  
    Commercial mortgage–owner occupied     354       403       354       366       380       392       403  
    Residential real estate loans     6,918       6,364       6,918       5,790       5,961       6,797       6,364  
    Residential real estate lines     253       221       253       232       183       235       221  
    Consumer indirect     3,157       3,814       3,157       3,291       2,897       2,880       3,814  
    Other consumer     62       34       62       57       36       36       34  
    Total non-performing loans     41,406       26,660       41,406       40,742       25,209       26,730       26,660  
    Foreclosed assets     60       142       60       109       63       140       142  
    Total non-performing assets   $ 41,466     $ 26,802     $ 41,466     $ 40,851     $ 25,272     $ 26,870     $ 26,802  
                                               
    Total non-performing loans to total loans     0.92 %     0.60 %     0.92 %     0.93 %     0.57 %     0.60 %     0.60 %
    Total non-performing assets to total assets     0.68 %     0.44 %     0.68 %     0.66 %     0.41 %     0.43 %     0.44 %
    Allowance for credit losses–loans to total loans     1.07 %     1.14 %     1.07 %     1.01 %     0.99 %     0.97 %     1.14 %
    Allowance for credit losses–loans to non-performing loans     116 %     192 %     116 %     110 %     174 %     161 %     192 %
                                                             
    1.      At period end.
                                                             
     
    FINANCIAL INSTITUTIONS, INC.
    Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
    (In thousands, except per share amounts)
        Year Ended     2024     2023  
        December 31,     Fourth     Third     Second     First     Fourth  
        2024     2023     Quarter     Quarter     Quarter     Quarter     Quarter  
    Ending tangible assets:                                          
    Total assets               $ 6,111,187     $ 6,156,317     $ 6,131,772     $ 6,298,598     $ 6,160,881  
    Less: Goodwill and other intangible assets, net                 60,758       60,867       60,979       72,287       72,504  
    Tangible assets               $ 6,050,429     $ 6,095,450     $ 6,070,793     $ 6,226,311     $ 6,088,377  
                                               
    Ending tangible common equity:                                          
    Common shareholders’ equity               $ 568,823     $ 483,050     $ 450,375     $ 428,442     $ 437,504  
    Less: Goodwill and other intangible assets, net                 60,758       60,867       60,979       72,287       72,504  
    Tangible common equity               $ 508,065     $ 422,183     $ 389,396     $ 356,155     $ 365,000  
                                               
    Tangible common equity to tangible assets (1)                 8.40 %     6.93 %     6.41 %     5.72 %     6.00 %
                                               
    Common shares outstanding                 20,077       15,474       15,472       15,447       15,407  
    Tangible common book value per share (2)               $ 25.31     $ 27.28     $ 25.17     $ 23.06     $ 23.69  
                                               
    Average tangible assets:                                          
    Average assets   $ 6,129,414     $ 6,025,383     $ 6,121,385     $ 6,018,390     $ 6,153,429     $ 6,225,760     $ 6,127,190  
    Less: Average goodwill and other intangible assets, net     64,247       72,965       60,824       60,936       62,893       72,409       72,628  
    Average tangible assets   $ 6,065,167     $ 5,952,418     $ 6,060,561     $ 5,957,454     $ 6,090,536     $ 6,153,351     $ 6,054,562  
                                               
    Average tangible common equity:                                          
    Average common equity   $ 459,139     $ 406,394     $ 500,096     $ 465,986     $ 432,208     $ 437,743     $ 401,037  
    Less: Average goodwill and other intangible assets, net     64,247       72,965       60,824       60,936       62,893       72,409       72,628  
    Average tangible common equity   $ 394,892     $ 333,429     $ 439,272     $ 405,050     $ 369,315     $ 365,334     $ 328,409  
                                               
    Net (loss) income available to common shareholders   $ (25,981 )   $ 48,805     $ (66,052 )   $ 13,101     $ 25,265     $ 1,705     $ 9,415  
    Return on average tangible common equity (3)     -6.58 %     14.64 %     -59.82 %     12.87 %     27.51 %     1.88 %     11.37 %
                                               
    1.      Tangible common equity divided by tangible assets.
    2.      Tangible common equity divided by common shares outstanding.
    3.      Net income available to common shareholders (annualized) divided by average tangible common equity.
     

    The MIL Network –

  • MIL-OSI: Zoom to Release Financial Results for the Fourth Quarter and Full Fiscal Year 2025

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — Zoom Communications, Inc. (NASDAQ: ZM) today announced it will release its financial results for the fourth quarter and full fiscal year 2025 on Monday, February 24, 2025, after the market closes.

    A live Zoom Webinar of the event can be accessed at 2:00 pm PT / 5:00 pm ET through Zoom’s investor relations website at https://investors.zoom.us. A replay will be available approximately two hours after the conclusion of the live event.

    About Zoom
    Zoom’s mission is to provide an AI-first work platform for human connection. Reimagine teamwork with Zoom Workplace — Zoom’s open collaboration platform with AI Companion empowers teams to be more productive. Together with Zoom Workplace, Zoom’s Business Services for sales, marketing, and customer experience teams, including Zoom Contact Center, strengthen customer relationships throughout the customer lifecycle. Founded in 2011, Zoom is publicly traded (NASDAQ:ZM) and headquartered in San Jose, California. Get more information at zoom.com.

    Public Relations
    Colleen Rodriguez
    Head of Global PR for Zoom
    press@zoom.us

    Investor Relations
    Charles Eveslage
    Head of Investor Relations for Zoom
    investors@zoom.us

    The MIL Network –

  • MIL-OSI: GSI Technology, Inc. Reports Third Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    SUNNYVALE, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — GSI Technology, Inc. (NASDAQ: GSIT) today reported financial results for its third fiscal quarter ended December 31, 2024.

    Summary Financial Results Table (in thousands, except per share amounts)

      Three Months Ended   Nine Months Ended
      Dec. 31, 2024   Sept. 30, 2024   Dec. 31, 2023   Dec. 31, 2024   Dec. 31, 2023
    Net revenues $ 5,414     $ 4,550     $ 5,318     $ 14,635     $ 16,613  
    Gross margin (%)   54.0 %     38.6 %     55.9 %     46.7 %     55.2 %
    Operating expenses $ 6,978     $ 7,341     $ 9,660     $ 15,400     $ 25,082  
    Operating loss $ (4,055 )   $ (5,584 )   $ (6,685 )   $ (8,559 )   $ (15,917 )
    Net loss $ (4,029 )   $ (5,458 )   $ (6,601 )   $ (8,409 )   $ (15,766 )
    Net loss per share, diluted $ (0.16 )   $ (0.21 )   $ (0.26 )   $ (0.33 )   $ (0.63 )
                                           

    Lee-Lean Shu, Chairman and Chief Executive Officer, stated, “In the third quarter, revenue reached $5.4 million, up 2% year-over-year and 19% sequentially. Our core SRAM sales are strengthening as customer orders rebound due to normalized inventory levels and increasing demand from a key customer whose systems are integral to manufacturing leading AI chips. We anticipate this customer to become our largest revenue contributor in fiscal 2025.”

    Mr. Shu concluded, “The development of our APU technology is progressing steadily. The Gemini-II chip is on track for a February tape-out with availability in May, aligning with a milestone with the Space Development Agency SBIR. The latest version of Gemini-II takes AI to the next level by combining advanced neural networks with cutting-edge radar imaging technology, like Synthetic Aperture Radar (SAR), designed to tackle important challenges in defense and aerospace. We can leverage Gemini-II’s architecture to accelerate the development of Plato, our next-generation chip, with a cost-effective, faster-to-market strategy. Plato’s ultra-low-power design will target rapidly growing markets for edge AI and large language model solutions. Additionally, increased operational efficiency and SRAM sales improvement position us for stability as we continue to evaluate strategic alternatives.”

    Commenting on the outlook for GSI’s fourth quarter of fiscal 2025, Mr. Shu stated, “Our current expectations for the upcoming fourth quarter is for net revenues in a range of $5.4 million to $6.2 million, with gross margin of approximately 55% to 57%.”

    Third Quarter Fiscal Year 2025 Summary Financials

    The Company reported net revenues of $5.4 million for the third quarter of fiscal 2025, compared to $5.3 million for the third quarter of fiscal 2024 and $4.6 million for the second quarter of fiscal 2025. Gross margin was 54.0% in the third quarter of fiscal 2025 compared to 55.9% in the third quarter of fiscal 2024 and 38.6% in the preceding second quarter of fiscal 2025. The sequential increase in gross margin in the third quarter of fiscal 2025 was primarily due to higher revenue, product mix and severance costs associated with manufacturing workforce reductions in the prior quarter.

    In the third quarter of fiscal 2025, sales to Nokia were $239,000, or 4.4% of net revenues, compared to $807,000, or 15.2% of net revenues, in the same period a year ago and $812,000, or 17.8% of net revenues, in the prior quarter. Military/defense sales were 30.0% of third quarter shipments compared to 28.2% of shipments in the comparable period a year ago and 40.2% of shipments in the prior quarter. SigmaQuad sales were 39.1% of third quarter shipments compared to 46.9% in the third quarter of fiscal 2024 and 38.6% in the prior quarter.

    Total operating expenses in the third quarter of fiscal 2025 were $7.0 million, compared to $9.7 million in the third quarter of fiscal 2024 and $7.3 million in the prior quarter. Research and development expenses were $4.0 million in the third quarter of fiscal 2025, compared to $7.0 million in the prior-year period and $4.8 million in the prior quarter. Selling, general and administrative expenses were $3.0 million in the quarter ended December 31, 2024, compared to $2.7 million in the prior-year period and $2.6 million in the previous quarter.

    Third quarter fiscal 2025 operating loss was $(4.1) million compared to an operating loss of $(6.7) million in the prior-year period and $(5.6) million in the prior quarter. Third quarter fiscal 2025 net loss included interest and other income of $70,000 and a tax provision of $44,000, compared to $155,000 in interest and other income and a tax provision of $71,000 for the same period a year ago. In the preceding second quarter, net loss included interest and other income of $149,000 and a tax provision of $23,000.

    Net loss in the third quarter of fiscal 2025 was $(4.0) million, or $(0.16) per diluted share, compared to a net loss of $(6.6) million, or $(0.26) per diluted share, for the third quarter of fiscal 2024 and a net loss of $(5.5) million, or $(0.21) per diluted share, for the second quarter of fiscal 2025.

    Total third quarter pre-tax stock-based compensation expense was $429,000 compared to $649,000 in the comparable quarter a year ago and $663,000 in the prior quarter.

    At December 31, 2024, the Company had $15.1 million in cash and cash equivalents, compared to $14.4 million at March 31, 2024. Working capital was $17.9 million as of December 31, 2024 versus $19.1 million at March 31, 2024. Stockholders’ equity as of December 31, 2024 was $29.9 million, compared to $36.0 million as of the fiscal year ended March 31, 2024.

    Conference Call

    Management will conduct a conference call to review the Company’s financial results for the third quarter of fiscal year 2025 and its current outlook for the fourth quarter of fiscal 2025 at 1:30 p.m. Pacific time (4:30 p.m. Eastern Time) today.

    To participate in the call, please dial 1-877-407-3982 in the U.S. or 1-201-493-6780 for international approximately 10 minutes prior to the above start time and provide Conference ID 13751185. The call will also be streamed live via the internet at www.gsitechnology.com.

    A replay will be available from January 30, 2025, at 7:30 p.m. Eastern Time through February 6, 2025, at 11:59 p.m. Eastern Time by dialing toll-free for the U.S. 1-844-512-2921 or international 1-412-317-6671 and entering pin number 13751185. A webcast of the call will be archived on the Company’s investor relations website under the Events and Presentations tab.

    About GSI Technology

    Founded in 1995, GSI Technology, Inc. is a leading provider of semiconductor memory solutions. GSI’s resources are focused on bringing new products to market that leverage existing core strengths, including radiation-hardened memory products for extreme environments and Gemini-I, the associative processing unit designed to deliver performance advantages for diverse artificial intelligence applications. GSI Technology is headquartered in Sunnyvale, California, and has sales offices in the Americas, Europe, and Asia. For more information, please visit www.gsitechnology.com.

    Forward-Looking Statements

    The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding GSI Technology’s expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to GSI Technology as of the date hereof, and GSI Technology assumes no obligation to update any such forward-looking statements. Forward-looking statements involve a variety of risks and uncertainties, which could cause actual results to differ materially from those projected. These risks include those associated with the normal quarterly and fiscal year-end closing process. Examples of risks that could affect our current expectations regarding future revenues and gross margins include those associated with fluctuations in GSI Technology’s operating results; GSI Technology’s historical dependence on sales to a limited number of customers and fluctuations in the mix of customers and products in any period; global public health crises that reduce economic activity; the rapidly evolving markets for GSI Technology’s products and uncertainty regarding the development of these markets; the need to develop and introduce new products to offset the historical decline in the average unit selling price of GSI Technology’s products; the challenges of rapid growth followed by periods of contraction; intensive competition; delays or unanticipated costs that may be encountered in the development of new products based on our in-place associative computing technology and the establishment of new markets and customer and partner relationships for the sale of such products; and delays or unexpected challenges related to the establishment of customer relationships and orders for GSI Technology’s radiation-hardened and tolerant SRAM products. Many of these risks are currently amplified by and will continue to be amplified by, or in the future may be amplified by, economic and geopolitical conditions, such as changing interest rates, worldwide inflationary pressures, military conflicts and declines in the global economic environment. Further information regarding these and other risks relating to GSI Technology’s business is contained in the Company’s filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.

    Source: GSI Technology, Inc.

    Contacts:

    Investor Relations:

    Hayden IR
    Kim Rogers
    385-831-7337
    kim@haydenir.com

    Media Relations:

    Finn Partners for GSI Technology
    Ricca Silverio
    415-348-2724
    gsi@finnpartners.com

    Company:

    GSI Technology, Inc.
    Douglas M. Schirle
    Chief Financial Officer
    408-331-9802

    GSI TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data)
    (Unaudited)
                       
            Three Months Ended   Nine Months Ended
            Dec. 31,
    		   Sept. 30,
    		   Dec. 31,   Dec. 31,
    		   Dec. 31,
              2024       2024       2023       2024       2023  
                       
    Net revenues $ 5,414     $ 4,550     $ 5,318     $ 14,635     $ 16,613  
    Cost of goods sold   2,491       2,793       2,343       7,794       7,448  
                       
    Gross profit    2,923       1,757       2,975       6,841       9,165  
                       
    Operating expenses:            
                       
      Research & development   4,037       4,788       6,976       13,039       16,871  
      Selling, general and administrative   2,997       2,553       2,684       8,154       8,211  
      Gain from sale of assets   (56 )     –       –       (5,793 )     –  
          Total operating expenses   6,978       7,341       9,660       15,400       25,082  
                       
    Operating loss   (4,055 )     (5,584 )     (6,685 )     (8,559 )     (15,917 )
                       
    Interest and other income, net   70       149       155       274       306  
                       
    Loss before income taxes   (3,985 )     (5,435 )     (6,530 )     (8,285 )     (15,611 )
    Provision for income taxes   44       23       71       124       155  
    Net loss   $ (4,029 )   $ (5,458 )   $ (6,601 )   $ (8,409 )   $ (15,766 )
                       
                       
    Net loss per share, basic $ (0.16 )   $ (0.21 )   $ (0.26 )   $ (0.33 )   $ (0.63 )
    Net loss per share, diluted $ (0.16 )   $ (0.21 )   $ (0.26 )   $ (0.33 )   $ (0.63 )
                       
    Weighted-average shares used in            
         computing per share amounts:            
                       
    Basic     25,546       25,467       25,256       25,463       25,094  
    Diluted     25,546       25,467       25,256       25,463       25,094  
                       
                       
    Stock-based compensation included in the Condensed Consolidated Statements of Operations:  
                       
            Three Months Ended   Nine Months Ended
            Dec. 31,
    		   Sept. 30,
    		   Dec. 31,   Dec. 31,
    		   Dec. 31,
              2024       2024       2023       2024       2023  
                       
    Cost of goods sold $ 50     $ 51     $ 51     $ 157     $ 175  
    Research & development   121       336       325       747       1,080  
    Selling, general and administrative   258       276       273       846       890  
            $ 429     $ 663     $ 649     $ 1,750     $ 2,145  
                       
    GSI TECHNOLOGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
    (Unaudited)
             
        Dec. 31, 2024   March 31, 2024
    Cash and cash equivalents $ 15,085   $ 14,429
    Accounts receivable   3,583     3,118
    Inventory   3,885     4,977
    Other current assets   1,267     1,954
    Assets held for sale   –     5,629
    Net property and equipment   883     1,148
    Operating lease right-of-use assets   9,858     1,553
    Other assets   9,572     9,656
    Total assets $ 44,133   $ 42,464
             
    Current liabilities $ 5,900   $ 5,365
    Long-term liabilities   8,300     1,129
    Stockholders’ equity   29,933     35,970
    Total liabilities and stockholders’ equity $ 44,133   $ 42,464
             

    The MIL Network –

  • MIL-OSI: Cipher Mining Announces $50 Million PIPE Investment from SoftBank Group

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 30, 2025 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ:CIFR) (“Cipher” or the “Company”) today announced a $50 million investment from SoftBank Group Corp. (TSE: 9984, “SoftBank”), one of the world’s most prominent investment holding companies. The $50 million PIPE investment will support Cipher’s HPC data center development business and establish SoftBank as a significant primary investor in Cipher.

    “We are thrilled to welcome SoftBank as an important investor in Cipher. This investment comes at a pivotal moment in Cipher’s growth trajectory, as the Company continues to attract attention for its pipeline of sites and innovative solutions in industrial-scale data centers. SoftBank’s focus on innovation in technology and AI development aligns with our vision to establish ourselves as a leader in HPC data center development,” said Tyler Page, Cipher’s CEO.

    Keefe, Bruyette, & Woods Inc. acted as financial advisor to the Company, and Latham & Watkins LLP acted as legal counsel to the Company.

    About Cipher

    Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction, and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. Cipher intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about Cipher’s beliefs and expectations regarding its planned business model and strategy, its HPC data center development and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

    These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), as any such factors may be updated from time to time in Cipher’s other filings with the SEC, including without limitation, Cipher’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

    Contacts:
    Investor Contact:
    Courtney Knight
    Head of Investor Relations at Cipher Mining
    courtney.knight@ciphermining.com

    Media Contact:
    Ryan Dicovitsky / Kendal Till
    Dukas Linden Public Relations
    CipherMining@DLPR.com

    The MIL Network –

  • MIL-OSI: LPL Financial Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter 2024

    Key Financial Results:

    • Net Income was $271 million, translating to diluted earnings per share (“EPS”) of $3.59, up 26% from a year ago
    • Adjusted EPS* increased 21% year-over-year to $4.25
      • Gross profit* increased 22% year-over-year to $1,228 million
      • Core G&A* increased 16% year-over-year to $422 million
      • Adjusted EBITDA* increased 22% year-over-year to $585 million

    Key Business Results:

    • Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion
      • Advisory assets increased 30% year-over-year to $957 billion
      • Advisory assets as a percentage of total assets increased to 55.0%, up from 54.3% a year ago
    • Total organic net new assets were $68 billion, representing 17% annualized growth
      • This included $40 billion of assets from Prudential Advisors (“Prudential”), and $2 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $30 billion, translating to an 8% annualized growth rate
    • Recruited assets(1)were a record of $79 billion
      • This included $63 billion of assets from Prudential
    • Advisor count(2)was 28,888, up 5,202 sequentially and 6,228 year-over-year
      • This included approximately 2,200 advisors from Atria Wealth Solutions, Inc. (“Atria”), and approximately 2,800 advisors from Prudential
    • Total client cash balances were $55 billion, an increase of $9 billion sequentially and $7 billion year-over-year
      • Client cash balances as a percentage of total assets were 3.2%, up from 2.9% in the prior quarter and down from 3.6% a year ago

    Key Capital and Liquidity Results:

    • Corporate cash(3)was $479 million
    • Leverage ratio(4)was 1.89x
    • Share repurchases were $100 million and dividends paid were $23 million

    Full Year 2024

    Key Financial Results:

    • Net Income was $1.1 billion, translating to diluted EPS of $14.03, up 2% from a year ago
    • Adjusted EPS* increased 5% year-over-year to $16.51
      • Gross profit* increased 12% year-over-year to $4.50 billion
      • Core G&A* increased 11% year-over-year to $1.52 billion
      • Adjusted EBITDA* increased 7% year-over-year to $2.22 billion

    Key Business & Capital and Liquidity Results:

    • Total organic net new assets were $141 billion, representing a 10% growth rate, up from 9% in 2023
    • Recruited assets for the year were a record of $149 billion, up approximately 86% from a year ago
    • Share repurchases were $170 million and dividends paid were $90 million

    Key Updates

    Large Institutions:

    • Prudential: Onboarded the retail wealth management business of Prudential, with $63 billion of total assets, of which $40 billion transitioned onto our platform in Q4
    • Wintrust Financial Corporation: In January 2025, onboarded the wealth management business of Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”), with $16 billion of brokerage and advisory assets, of which $15 billion transitioned onto our platform to-date

    M&A:

    • Atria: Closed the acquisition of Atria, and expect to complete the conversion in mid-2025
    • The Investment Center, Inc. (“The Investment Center”): On track to close and convert the acquisition of The Investment Center in the first half of 2025
    • Liquidity & Succession: Deployed approximately $81 million of capital to close 8 deals in Q4, including two external practices

    Corporate Debt:

    • Completed leverage-neutral refinancing of existing $1.0 billion Senior Secured Term Loan B with a new $1.0 billion Senior Unsecured Term Loan A

    Core G&A:

    • 2024 Core G&A* was $1,515 million, within our outlook range of $1,510 million to $1,525 million
      • Prior to the impact of Prudential and Atria, 2024 Core G&A* increased by approximately 8%
    • In 2025, we plan to slow the growth of Core G&A*, as our ongoing investments to scale our business are driving greater efficiencies
      • Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million
      • Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million

    SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its fourth quarter ended December 31, 2024, reporting net income of $271 million, or $3.59 per share. This compares with $218 million, or $2.85 per share, in the fourth quarter of 2023 and $255 million, or $3.39 per share, in the prior quarter.

    “2024 marked another milestone year for LPL,” said Rich Steinmeier, CEO. “We delivered double-digit organic asset growth, including the onboarding of one of our largest institutional partners, closed on our acquisition of Atria, continued to advance our pioneering Liquidity & Succession program, and reported record adjusted earnings per share. Looking ahead to 2025, our business momentum and financial strength position us well to continue expanding our leadership across the advisor-mediated marketplace and delivering long-term shareholder value.”

    “In Q4, we delivered solid business and financial results,” said Matt Audette, President and CFO. “As we look ahead, we remain excited about the opportunities we have to continue to drive growth, deliver operating leverage, and create long-term shareholder value.”

    Dividend Declaration

    The Company’s Board of Directors declared a $0.30 per share dividend to be paid on March 25, 2025 to all stockholders of record as of March 11, 2025.

    Conference Call and Additional Information

    The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, January 30, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

    Contacts

    Investor Relations
    investor.relations@lplfinancial.com

    Media Relations
    media.relations@lplfinancial.com

    About LPL Financial

    LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace(5), LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

    Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”) or its affiliate LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisers and broker-dealers. Members FINRA/SIPC. LPL Financial serves as the clearing and carrying firm for accounts LPL Enterprise introduces to it.

    LPL Financial and LPL Enterprise provide financial services only from the United States.

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

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

    Forward-Looking Statements

    This press release contains statements regarding:

    • the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Prudential, The Investment Center and Wintrust;
    • the Company’s future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company’s ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, share-based compensation expense, depreciation and amortization and share repurchases; and
    • future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

    These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company’s expectations and objectives as of January 30, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

    • the failure to satisfy the closing conditions applicable to the Company’s purchase agreement with The Investment Center, including regulatory approvals;
    • difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
    • disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients;
    • the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
    • changes in general economic and financial market conditions, including retail investor sentiment;
    • changes in interest rates and fees payable by banks participating in the Company’s client cash programs, including the Company’s success in negotiating agreements with current or additional counterparties;
    • the Company’s strategy and success in managing client cash program fees;
    • fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
    • effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
    • whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
    • changes in the growth and profitability of the Company’s fee-based offerings and asset-based revenues;
    • the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
    • the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
    • changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
    • the execution of the Company’s capital management plans, including its compliance with the terms of the Company’s amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company’s senior unsecured notes;
    • strategic acquisitions and investments, including pursuant to the Company’s Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
    • the price, availability and trading volumes of shares of the Company’s common stock, which will affect the timing and size of future share repurchases by the Company, if any;
    • the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
    • whether advisors affiliated with Atria, Prudential, The Investment Center, and Wintrust will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
    • the performance of third-party service providers to which business processes have been transitioned;
    • the Company’s ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
    • the other factors set forth in the Company’s most recent Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. 

    Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company’s view as of any date subsequent to the date of this press release.

     
    LPL Financial Holdings Inc.
    Consolidated Statements of Income
    (In thousands, except per share data)
    (Unaudited)
     
        Three Months Ended   Three Months Ended  
        December 31, September 30,   December 31,  
          2024     2024   Change   2023   Change
    REVENUE            
    Advisory   $ 1,595,834   $ 1,378,050   16 % $ 1,085,497   47 %
    Commission:            
    Sales-based     525,795     429,132   23 %   355,958   48 %
    Trailing     439,668     377,400   16 %   326,454   35 %
    Total commission     965,463     806,532   20 %   682,412   41 %
    Asset-based:            
    Client cash     378,816     353,855   7 %   352,661   7 %
    Other asset-based     290,962     272,336   7 %   228,473   27 %
    Total asset-based     669,778     626,191   7 %   581,134   15 %
    Service and fee     139,119     145,729   (5 %)   130,680   6 %
    Transaction     61,535     58,546   5 %   53,858   14 %
    Interest income, net     46,680     49,923   (6 %)   43,312   8 %
    Other     33,942     43,423   (22 %)   66,936   (49 %)
    Total revenue     3,512,351     3,108,394   13 %   2,643,829   33 %
    EXPENSE            
    Advisory and commission     2,250,427     1,948,065   16 %   1,607,978   40 %
    Compensation and benefits     321,933     266,415   21 %   270,709   19 %
    Promotional     162,057     164,538   (2 %)   126,800   28 %
    Depreciation and amortization     92,032     78,338   17 %   67,936   35 %
    Interest expense on borrowings     81,979     67,779   21 %   54,415   51 %
    Occupancy and equipment     75,538     69,879   8 %   62,103   22 %
    Amortization of other intangibles     42,614     32,461   31 %   28,618   49 %
    Brokerage, clearing and exchange     34,789     29,636   17 %   25,917   34 %
    Professional services     32,055     26,295   22 %   21,572   49 %
    Communications and data processing     18,772     17,916   5 %   17,814   5 %
    Other     58,874     59,724   (1 %)   66,180   (11 %)
    Total expense     3,171,070     2,761,046   15 %   2,350,042   35 %
    INCOME BEFORE PROVISION FOR INCOME TAXES     341,281     347,348   (2 %)   293,787   16 %
    PROVISION FOR INCOME TAXES     70,532     92,045   (23 %)   76,232   (7 %)
    NET INCOME   $ 270,749   $ 255,303   6 % $ 217,555   24 %
    EARNINGS PER SHARE            
    Earnings per share, basic   $ 3.62   $ 3.41   6 % $ 2.89   25 %
    Earnings per share, diluted   $ 3.59   $ 3.39   6 % $ 2.85   26 %
    Weighted-average shares outstanding, basic     74,785     74,776   — %   75,228   (1 %)
    Weighted-average shares outstanding, diluted     75,337     75,405   — %   76,240   (1 %)
    LPL Financial Holdings Inc.
    Consolidated Statements of Income
    (In thousands, except per share data)
    (Unaudited)
     
        Years Ended  
        December 31,  
          2024     2023   Change
    REVENUE        
    Advisory   $ 5,461,858   $ 4,135,681   32 %
    Commission:        
    Sales-based     1,763,232     1,252,783   41 %
    Trailing     1,542,255     1,299,840   19 %
    Total commission     3,305,487     2,552,623   29 %
    Asset-based:        
    Client cash     1,426,528     1,509,869   (6 %)
    Other asset-based     1,071,170     867,860   23 %
    Total asset-based     2,497,698     2,377,729   5 %
    Service and fee     552,020     508,437   9 %
    Transaction     236,274     199,939   18 %
    Interest income, net     187,606     159,415   18 %
    Other     144,164     119,024   21 %
    Total revenue     12,385,107     10,052,848   23 %
    EXPENSE        
    Advisory and commission     7,751,006     5,915,807   31 %
    Compensation and benefits     1,136,717     979,681   16 %
    Promotional     589,339     459,233   28 %
    Depreciation and amortization     308,527     246,994   25 %
    Occupancy and equipment     281,210     248,620   13 %
    Interest expense on borrowings     274,181     186,804   47 %
    Amortization of other intangibles     135,234     107,211   26 %
    Brokerage, clearing and exchange     127,941     105,984   21 %
    Professional services     93,729     72,583   29 %
    Communications and data processing     75,838     75,717   — %
    Other     218,493     209,439   4 %
    Total expense     10,992,215     8,608,073   28 %
    INCOME BEFORE PROVISION FOR INCOME TAXES     1,392,892     1,444,775   (4 %)
    PROVISION FOR INCOME TAXES     334,276     378,525   (12 %)
    NET INCOME   $ 1,058,616   $ 1,066,250   (1 %)
    EARNINGS PER SHARE        
    Earnings per share, basic   $ 14.17   $ 13.88   2 %
    Earnings per share, diluted   $ 14.03   $ 13.69   2 %
    Weighted-average shares outstanding, basic     74,713     76,807   (3 %)
    Weighted-average shares outstanding, diluted     75,427     77,861   (3 %)
    LPL Financial Holdings Inc.
    Consolidated Statements of Financial Condition
    (In thousands, except share data)
    (Unaudited)
     
        December 31, 2024 September 30, 2024 December 31, 2023
    ASSETS
    Cash and equivalents   $ 967,079   $ 1,474,954   $ 465,671  
    Cash and equivalents segregated under federal or other regulations     1,597,249     1,382,867     2,007,312  
    Restricted cash     119,724     104,881     108,180  
    Receivables from clients, net     633,834     622,015     588,585  
    Receivables from brokers, dealers and clearing organizations     76,545     53,763     50,069  
    Advisor loans, net     2,281,088     1,913,363     1,479,690  
    Other receivables, net     902,777     802,186     743,317  
    Investment securities ($42,267, $94,694 and $76,088 at fair value at December 31, 2024, September 30, 2024 and December 31, 2023, respectively)     57,481     111,096     91,311  
    Property and equipment, net     1,210,027     1,144,676     933,091  
    Goodwill     2,172,873     1,868,193     1,856,648  
    Other intangibles, net     1,482,988     782,426     671,585  
    Other assets     1,815,739     1,681,455     1,390,021  
    Total assets   $ 13,317,404   $ 11,941,875   $ 10,385,480  
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    LIABILITIES:        
    Client payables   $ 1,898,665   $ 2,039,140   $ 2,266,176  
    Payables to brokers, dealers and clearing organizations     129,228     211,054     163,337  
    Accrued advisory and commission expenses payable     323,996     252,881     216,541  
    Corporate debt and other borrowings, net     5,494,724     4,441,913     3,734,111  
    Accounts payable and accrued liabilities     588,450     485,927     485,963  
    Other liabilities     1,951,739     1,739,209     1,440,373  
    Total liabilities     10,386,802     9,170,124     8,306,501  
    STOCKHOLDERS’ EQUITY:        
    Common stock, $0.001 par value; 600,000,000 shares authorized; 130,914,541, 130,779,259 shares and 130,233,328 shares issued at December 31, 2024, September 30, 2024 and December 31, 2023, respectively     131     131     130  
    Additional paid-in capital     2,066,268     2,059,207     1,987,684  
    Treasury stock, at cost — 56,253,909, 55,968,552 shares and 55,576,970 shares at December 31, 2024, September 30, 2024 and December 31, 2023, respectively     (4,202,322 )   (4,102,319 )   (3,993,949 )
    Retained earnings     5,066,525     4,814,732     4,085,114  
    Total stockholders’ equity     2,930,602     2,771,751     2,078,979  
    Total liabilities and stockholders’ equity   $ 13,317,404   $ 11,941,875   $ 10,385,480  
    LPL Financial Holdings Inc.
    Management’s Statements of Operations
    (In thousands, except per share data)
    (Unaudited)
     
    Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled“Non-GAAP Financial Measures”in this release.
     
        Quarterly Results
        Q4 2024 Q3 2024 Change Q4 2023 Change
    Gross Profit(6)            
    Advisory   $ 1,595,834   $ 1,378,050   16 % $ 1,085,497   47 %
    Trailing commissions     439,668     377,400   16 %   326,454   35 %
    Sales-based commissions     525,795     429,132   23 %   355,958   48 %
    Advisory fees and commissions     2,561,297     2,184,582   17 %   1,767,909   45 %
    Production-based payout(7)     (2,248,674 )   (1,910,634 ) 18 %   (1,548,540 ) 45 %
    Advisory fees and commissions, net of payout     312,623     273,948   14 %   219,369   43 %
    Client cash(8)     397,001     372,333   7 %   373,979   6 %
    Other asset-based(9)     290,962     272,336   7 %   228,473   27 %
    Service and fee     139,119     145,729   (5 %)   130,680   6 %
    Transaction     61,535     58,546   5 %   53,858   14 %
    Interest income, net(10)     28,481     31,428   (9 %)   21,975   30 %
    Other revenue(11)     32,705     3,392   n/m     4,636   n/m  
    Total net advisory fees and commissions and attachment revenue     1,262,426     1,157,712   9 %   1,032,970   22 %
    Brokerage, clearing and exchange expense     (34,789 )   (29,636 ) 17 %   (25,917 ) 34 %
    Gross Profit(6)     1,227,637     1,128,076   9 %   1,007,053   22 %
                 
    G&A Expense            
    Core G&A(12)     421,894     359,134   17 %   364,469   16 %
    Regulatory charges(13)     7,335     24,879   (71 %)   8,905   (18 %)
    Promotional (ongoing)(14)(15)     173,191     175,605   (1 %)   138,457   25 %
    Acquisition costs(15)     37,261     22,243   68 %   34,931   7 %
    Employee share-based compensation     26,067     20,289   28 %   15,535   68 %
    Total G&A     665,748     602,150   11 %   562,297   18 %
    Loss on extinguishment of debt     3,983     —   100 %   —   100 %
    EBITDA(16)     557,906     525,926   6 %   444,756   25 %
    Depreciation and amortization     92,032     78,338   17 %   67,936   35 %
    Amortization of other intangibles     42,614     32,461   31 %   28,618   49 %
    Interest expense on borrowings     81,979     67,779   21 %   54,415   51 %
    INCOME BEFORE PROVISION FOR INCOME TAXES     341,281     347,348   (2 %)   293,787   16 %
    PROVISION FOR INCOME TAXES     70,532     92,045   (23 %)   76,232   (7 %)
    NET INCOME   $ 270,749   $ 255,303   6 % $ 217,555   24 %
    Earnings per share, diluted   $ 3.59   $ 3.39   6 % $ 2.85   26 %
    Weighted-average shares outstanding, diluted     75,337     75,405   — %   76,240   (1 %)
    Adjusted EBITDA(16)   $ 584,783   $ 566,169   3 % $ 479,687   22 %
    Adjusted EPS(17)   $ 4.25   $ 4.16   2 % $ 3.51   21 %
    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
     
        Q4 2024 Q3 2024 Change Q4 2023 Change
    Market Drivers            
    S&P 500 Index (end of period)     5,882     5,762   2%   4,770   23%
    Russell 2000 Index (end of period)     2,230     2,230   —%   2,027   10%
    Fed Funds daily effective rate (average bps)     466     527   (61bps)   533   (67bps)
                 
    Advisory and Brokerage Assets(18)            
    Advisory assets   $ 957.0   $ 892.0   7% $ 735.8   30%
    Brokerage assets     783.7     700.1   12%   618.2   27%
    Total Advisory and Brokerage Assets   $ 1,740.7   $ 1,592.1   9% $ 1,354.1   29%
    Advisory as a % of Total Advisory and Brokerage Assets     55.0 %   56.0 % (100bps)   54.3 % 70bps
                 
    Assets by Platform            
    Corporate advisory assets(19)   $ 678.3   $ 618.8   10% $ 496.5   37%
    Independent RIA advisory assets(19)     278.7     273.2   2%   239.3   16%
    Brokerage assets     783.7     700.1   12%   618.2   27%
    Total Advisory and Brokerage Assets   $ 1,740.7   $ 1,592.1   9% $ 1,354.1   29%
                 
    Centrally Managed Assets            
    Centrally managed assets(20)   $ 160.0   $ 138.1   16% $ 112.1   43%
    Centrally Managed as a % of Total Advisory Assets     16.7 %   15.5 % 120bps   15.2 % 150bps
    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
     
        Q4 2024 Q3 2024 Change Q4 2023 Change
    Organic Net New Assets (NNA)(21)            
    Organic net new advisory assets   $ 49.3   $ 23.2   n/m $ 20.5   n/m
    Organic net new brokerage assets     18.8     3.8   n/m   4.2   n/m
    Total Organic Net New Assets   $ 68.0   $ 27.0   n/m $ 24.7   n/m
                 
    Acquired Net New Assets(21)            
    Acquired net new advisory assets   $ 21.8   $ 0.5   n/m $ —   n/m
    Acquired net new brokerage assets     67.5     0.1   n/m   —   n/m
    Total Acquired Net New Assets   $ 89.3   $ 0.6   n/m $ —   n/m
                 
    Total Net New Assets(21)            
    Net new advisory assets   $ 71.1   $ 23.7   n/m $ 20.5   n/m
    Net new brokerage assets     86.2     3.8   n/m   4.2   n/m
    Total Net New Assets   $ 157.3   $ 27.5   n/m $ 24.7   n/m
                 
    Net brokerage to advisory conversions(22)   $ 4.8   $ 3.5   n/m $ 2.6   n/m
    Organic advisory NNA annualized growth(23)     22.1 %   11.2 % n/m   12.4 % n/m
    Total organic NNA annualized growth(23)     17.1 %   7.2 % n/m   8.0 % n/m
                 
    Net New Advisory Assets(21)            
    Corporate RIA net new advisory assets   $ 64.5   $ 24.0   n/m $ 15.9   n/m
    Independent RIA net new advisory assets     6.6     (0.3 ) n/m   4.6   n/m
    Total Net New Advisory Assets   $ 71.1   $ 23.7   n/m $ 20.5   n/m
    Centrally managed net new advisory assets(21)   $ 24.9   $ 4.4   n/m $ 3.0   n/m
                 
    Net buy (sell) activity(24)   $ 38.3   $ 37.7   n/m $ 32.8   n/m
     
    Note: Totals may not foot due to rounding.
    LPL Financial Holdings Inc.
    Client Cash Data
    (Dollars in thousands, except where noted)
    (Unaudited)
     
        Q4 2024 Q3 2024 Change Q4 2023 Change
    Client Cash Balances (in billions)(25)            
    Insured cash account sweep   $ 38.3   $ 32.1   19% $ 34.5   11%
    Deposit cash account sweep     10.7     9.6   11%   9.3   15%
    Total Bank Sweep     49.0     41.7   18%   43.8   12%
    Money market sweep     4.3     2.3   87%   2.4   79%
    Total Client Cash Sweep Held by Third Parties     53.3     44.0   21%   46.2   15%
    Client cash account (CCA)(26)     1.8     1.8   —%   2.0   (10%)
    Total Client Cash Balances   $ 55.1   $ 45.8   20% $ 48.2   14%
    Client Cash Balances as a % of Total Assets     3.2 %   2.9 % 30bps   3.6 % (40bps)
     
    Note: Totals may not foot due to rounding.
      Three Months Ended
      December 31, 2024 September 30, 2024 December 31, 2023
    Interest-Earnings Assets Average Balance (in billions) Revenue Net Yield (bps)(27) Average Balance (in billions) Revenue Net Yield (bps)(27) Average Balance (in billions) Revenue Net Yield (bps)(27)
    Insured cash account sweep $ 34.8 $ 292,661 335 $ 31.1 $ 259,503 332 $ 33.3 $ 266,058 317
    Deposit cash account sweep   9.8   83,879 340   9.2   92,765 400   8.9   84,901 379
    Total Bank Sweep   44.6   376,540 336   40.3   352,268 348   42.2   350,959 330
    Money market sweep   3.3   2,277 28   2.3   1,587 28   2.4   1,702 28
    Total Client Cash Held By Third Parties   47.9   378,817 315   42.6   353,855 330   44.6   352,661 314
    Client cash account (CCA)(26)   1.8   18,184 407   1.6   18,478 472   1.8   21,318 475
    Total Client Cash   49.7   397,001 318   44.2   372,333 335   46.4   373,979 320
    Margin receivables   0.6   11,506 829   0.5   11,199 885   0.5   10,874 878
    Other interest revenue   1.3   16,975 524   1.5   20,229 533   0.9   11,101 507
    Total Client Cash and Interest Income, Net $ 51.6 $ 425,482 329 $ 46.2 $ 403,761 348 $ 47.7 $ 395,954 329
     
    Note: Totals may not foot due to rounding.
    LPL Financial Holdings Inc.
    Monthly Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
     
        December 2024 November 2024 Change October 2024 September 2024
    Advisory and Brokerage Assets(18)            
    Advisory assets   $ 957.0   $ 973.8   (2%) $ 910.6   $ 892.0  
    Brokerage assets     783.7     785.6   —%   762.7     700.1  
    Total Advisory and Brokerage Assets   $ 1,740.7   $ 1,759.3   (1%) $ 1,673.3   $ 1,592.1  
                 
    Organic Net New Assets (NNA)(21)            
    Organic net new advisory assets   $ 12.5   $ 27.9   n/m $ 8.8   $ 11.0  
    Organic net new brokerage assets     12.9     6.3   n/m   (0.5 )   0.5  
    Total Organic Net New Assets   $ 25.5   $ 34.2   n/m $ 8.3   $ 11.4  
                 
    Acquired Net New Assets(21)            
    Acquired net new advisory assets   $ —   $ 0.5   n/m $ 21.3   $ 0.2  
    Acquired net new brokerage assets     0.2     0.3   n/m   67.0   $ 0.1  
    Total Acquired Net New Assets   $ 0.3   $ 0.8   n/m $ 88.3   $ 0.3  
                 
    Total Net New Assets(21)            
    Net new advisory assets   $ 12.6   $ 28.4   n/m $ 30.1   $ 11.2  
    Net new brokerage assets     13.2     6.6   n/m   66.5     0.5  
    Total Net New Assets   $ 25.8   $ 35.0   n/m $ 96.6   $ 11.7  
    Net brokerage to advisory conversions(22)   $ 2.0   $ 1.7   n/m $ 1.1   $ 1.2  
                 
    Client Cash Balances(25)            
    Insured cash account sweep   $ 38.3   $ 34.8   10% $ 34.7   $ 32.1  
    Deposit cash account sweep     10.7     9.9   8%   9.7     9.6  
    Total Bank Sweep     49.0     44.7   10%   44.4     41.7  
    Money market sweep     4.3     4.3   —%   2.6     2.3  
    Total Client Cash Sweep Held by Third Parties     53.3     49.0   9%   47.0     44.0  
    Client cash account (CCA)(26)     1.8     1.5   20%   1.3     1.8  
    Total Client Cash Balances     55.1     50.5   9%   48.3     45.8  
                 
    Net buy (sell) activity(24)   $ 13.5   $ 12.4   n/m $ 12.5   $ 12.2  
                 
    Market Drivers            
    S&P 500 Index (end of period)     5,882     6,032   (2%)   5,705     5,762  
    Russell 2000 Index (end of period)     2,230     2,435   (8%)   2,197     2,230  
    Fed Funds effective rate (average bps)     448     465   (17bps)   483     513  
     
    Note: Totals may not foot due to rounding.
    LPL Financial Holdings Inc.
    Financial Measures
    (Dollars in thousands, except where noted)
    (Unaudited)
     
        Q4 2024 Q3 2024 Change Q4 2023 Change
    Commission Revenue by Product            
    Annuities   $ 561,918   $ 481,852   17% $ 408,480   38%
    Mutual funds     232,529     193,451   20%   167,392   39%
    Fixed income     59,332     55,707   7%   40,441   47%
    Equities     45,829     36,786   25%   29,920   53%
    Other     65,855     38,736   70%   36,179   82%
    Total commission revenue   $ 965,463   $ 806,532   20% $ 682,412   41%
                 
    Commission Revenue by Sales-based and Trailing      
    Sales-based commissions            
    Annuities   $ 314,591   $ 265,955   18% $ 221,070   42%
    Mutual funds     52,908     42,310   25%   37,016   43%
    Fixed income     59,332     55,707   7%   40,441   47%
    Equities     45,829     36,786   25%   29,920   53%
    Other     53,135     28,374   87%   27,511   93%
    Total sales-based commissions   $ 525,795   $ 429,132   23% $ 355,958   48%
    Trailing commissions            
    Annuities   $ 247,327   $ 215,897   15% $ 187,410   32%
    Mutual funds     179,621     151,141   19%   130,376   38%
    Other     12,720     10,362   23%   8,668   47%
    Total trailing commissions   $ 439,668   $ 377,400   16% $ 326,454   35%
    Total commission revenue   $ 965,463   $ 806,532   20% $ 682,412   41%
                 
    Payout Rate(7)     87.79 %   87.46 % 33bps   87.59 % 20bps
    LPL Financial Holdings Inc.
    Capital Management Measures
    (Dollars in thousands, except where noted)
    (Unaudited)
     
        Q4 2024 Q3 2024 Q4 2023
    Cash and equivalents   $ 967,079   $ 1,474,954   $ 465,671  
    Cash at regulated subsidiaries     (884,779 )   (992,450 )   (410,313 )
    Excess cash at regulated subsidiaries per the Credit Agreement     397,138     225,886     128,327  
    Corporate Cash(3)   $ 479,438   $ 708,390   $ 183,685  
             
    Corporate Cash(3)        
    Cash at the Parent   $ 39,782   $ 435,109   $ 26,587  
    Excess cash at regulated subsidiaries per the Credit Agreement     397,138     225,886     128,327  
    Cash at non-regulated subsidiaries     42,518     47,395     28,771  
    Corporate Cash   $ 479,438   $ 708,390   $ 183,685  
             
    Leverage Ratio        
    Total debt   $ 5,517,000   $ 4,469,175   $ 3,757,200  
    Total corporate cash     479,438     708,390     183,685  
    Credit Agreement Net Debt   $ 5,037,562   $ 3,760,785   $ 3,573,515  
    Credit Agreement EBITDA (trailing twelve months)(28)   $ 2,665,033   $ 2,340,886   $ 2,194,807  
    Leverage Ratio   1.89x 1.61x 1.63x
        December 31, 2024  
    Total Debt   Balance Current Applicable
    Margin    		 Interest Rate Maturity
    Revolving Credit Facility(a)   $ 1,047,000   ABR+37.5 bps / SOFR+147.5 bps 6.007 % 5/20/2029
    Broker-Dealer Revolving Credit Facility     —   SOFR+135 bps 5.840 % 5/19/2025
    Senior Unsecured Term Loan A     1,020,000   SOFR+147.5 bps(b) 6.000 % 12/5/2026
    Senior Unsecured Notes     500,000   5.700% Fixed 5.700 % 5/20/2027
    Senior Unsecured Notes     400,000   4.625% Fixed 4.625 % 11/15/2027
    Senior Unsecured Notes     750,000   6.750% Fixed 6.750 % 11/17/2028
    Senior Unsecured Notes     900,000   4.000% Fixed 4.000 % 3/15/2029
    Senior Unsecured Notes     400,000   4.375% Fixed 4.375 % 5/15/2031
    Senior Unsecured Notes     500,000   6.000% Fixed 6.000 % 5/20/2034
    Total / Weighted Average   $ 5,517,000     5.532 %  
     
    (a) Secured borrowing capacity of $2.25 billion at LPL Holdings, Inc. (the “Parent”).
    (b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.
    LPL Financial Holdings Inc.
    Key Business and Financial Metrics
    (Dollars in thousands, except where noted)
    (Unaudited)
     
        Q4 2024 Q3 2024 Change Q4 2023 Change
    Advisors            
    Advisors     28,888     23,686   22%   22,660   27%
    Net new advisors     5,202     224   n/m   256   n/m
    Annualized advisory fees and commissions per advisor(29)   $ 390   $ 371   5% $ 314   24%
    Average total assets per advisor ($ in millions)(30)   $ 60.3   $ 67.2   (10%) $ 59.8   1%
    Transition assistance loan amortization ($ in millions)(31)   $ 76.3   $ 69.1   10% $ 55.1   38%
    Total client accounts (in millions)     10.0     8.7   15%   8.3   20%
                 
    Employees     7,780     7,342   6%   7,372   6%
                 
    Services Group            
    Services Group subscriptions(32)            
    Professional Services     1,925     1,890   2%   1,895   2%
    Business Optimizers     3,980     3,798   5%   3,363   18%
    Planning and Advice     799     735   9%   548   46%
    Total Services Group subscriptions     6,704     6,423   4%   5,806   15%
    Services Group advisor count     4,521     4,340   4%   3,850   17%
                 
    AUM retention rate (quarterly annualized)(33)     97.3 %   97.0 % 30bps   98.4 % (110bps)
                 
    Capital Management            
    Capital expenditures ($ in millions)(34)   $ 165.5   $ 147.1   13% $ 105.9   56%
    Acquisitions, net ($ in millions)(35)   $ 847.9   $ 34.1   n/m $ 92.9   n/m
                 
    Share repurchases ($ in millions)   $ 100.0   $ —   100% $ 225.0   (56%)
    Dividends ($ in millions)     22.5     22.4   —%   22.6   —%
    Total Capital Returned ($ in millions)   $ 122.5   $ 22.4   n/m $ 247.6   (51%)


    Non-GAAP Financial Measures

    Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

    Adjusted EPS and Adjusted net income

    Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, certain regulatory charges, losses on extinguishment of debt, and amounts related to the departure of the Company’s former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

    Gross profit

    Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

    Core G&A

    Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company’s total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

    EBITDA and Adjusted EBITDA

    EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, certain regulatory charges, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

    Credit Agreement EBITDA

    Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company’s amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

    Endnote Disclosures

    (1) Represents the estimated total advisory and brokerage assets expected to transition to the Company’s primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.

    (2) The terms “Financial Advisors” and “Advisors” refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial, an SEC-registered broker-dealer and investment advisor, or one of Atria’s seven introducing broker-dealer subsidiaries.

    (3) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company’s Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria’s introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company’s Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.

    (4) Compliance with the Leverage Ratio is only required under the Company’s revolving credit facility.

    (5) The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.

    (6) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    Total revenue(a)   $ 3,512,351   $ 3,108,394   $ 2,643,829  
    Advisory and commission expense     2,250,427     1,948,065     1,607,978  
    Brokerage, clearing and exchange expense     34,789     29,636     25,917  
    Employee deferred compensation     (502 )   2,617     2,881  
    Gross profit(a)   $ 1,227,637   $ 1,128,076   $ 1,007,053  

    (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.

    Below is a calculation of gross profit for the years presented (in thousands):

        Years Ended December 31,
          2024     2023  
    Total revenue(a)   $ 12,385,107   $ 10,052,848  
    Advisory and commission expense     7,751,006     5,915,807  
    Brokerage, clearing and exchange expense     127,941     105,984  
    Employee deferred compensation     4,815     4,101  
    Gross profit(a)   $ 4,501,345   $ 4,026,956  

    (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.

    (7) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):

        Q4 2024 Q3 2024 Q4 2023
    Advisory and commission expense   $ 2,250,427   $ 1,948,065   $ 1,607,978  
    Less: Advisor deferred compensation     (1,753 )   (37,431 )   (59,438 )
    Production-based payout   $ 2,248,674   $ 1,910,634   $ 1,548,540  
             
    Advisory and commission revenue   $ 2,561,297   $ 2,184,582   $ 1,767,909  
             
    Payout rate     87.79 %   87.46 %   87.59 %

    (8) Below is a reconciliation of client cash revenue per Management’s Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company’s consolidated statements of income for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    Client cash on Management’s Statement of Operations   $ 397,001   $ 372,333   $ 373,979  
    Interest income on CCA balances segregated under federal or other regulations(10)     (18,185 )   (18,478 )   (21,318 )
    Client cash on Consolidated Statements of Income   $ 378,816   $ 353,855   $ 352,661  

    (9) Consists of revenue from the Company’s sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.

    (10) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of interest income, net per Management’s Statements of Operations to interest income, net on the Company’s consolidated statements of income for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    Interest income, net on Management’s Statement of Operations   $ 28,481   $ 31,428   $ 21,975  
    Interest income on CCA balances segregated under federal or other regulations(8)     18,185     18,478     21,318  
    Interest income on deferred compensation     14     17     19  
    Interest income, net on Consolidated Statements of Income   $ 46,680   $ 49,923   $ 43,312  

    (11) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of other revenue per Management’s Statements of Operations to other revenue on the Company’s consolidated statements of income for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    Other revenue on Management’s Statement of Operations(a)   $ 32,705   $ 3,392   $ 4,636  
    Interest income on deferred compensation     (14 )   (17 )   (19 )
    Deferred compensation     1,251     40,048     62,319  
    Other revenue on Consolidated Statements of Income   $ 33,942   $ 43,423   $ 66,936  

    (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.

    (12) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company’s total expense to core G&A for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    Core G&A Reconciliation        
    Total expense   $ 3,171,070   $ 2,761,046   $ 2,350,042  
    Advisory and commission     (2,250,427 )   (1,948,065 )   (1,607,978 )
    Depreciation and amortization     (92,032 )   (78,338 )   (67,936 )
    Interest expense on borrowings     (81,979 )   (67,779 )   (54,415 )
    Brokerage, clearing and exchange     (34,789 )   (29,636 )   (25,917 )
    Amortization of other intangibles     (42,614 )   (32,461 )   (28,618 )
    Employee deferred compensation     502     (2,617 )   (2,881 )
    Loss on extinguishment of debt     (3,983 )   (— )   (— )
    Total G&A     665,748     602,150     562,297  
    Promotional (ongoing)(14)(15)     (173,191 )   (175,605 )   (138,457 )
    Acquisition costs(15)     (37,261 )   (22,243 )   (34,931 )
    Employee share-based compensation     (26,067 )   (20,289 )   (15,535 )
    Regulatory charges(13)     (7,335 )   (24,879 )   (8,905 )
    Core G&A   $ 421,894   $ 359,134   $ 364,469  

    Below is a reconciliation of the Company’s total expense to core G&A for the years presented (in thousands):

        Years Ended December 31,
          2024     2023  
    Core G&A Reconciliation      
    Total expense   $ 10,992,215   $ 8,608,073  
    Advisory and commission     (7,751,006 )   (5,915,807 )
    Depreciation and amortization     (308,527 )   (246,994 )
    Interest expense on borrowings     (274,181 )   (186,804 )
    Amortization of other intangibles     (135,234 )   (107,211 )
    Brokerage, clearing and exchange     (127,941 )   (105,984 )
    Employee deferred compensation     (4,815 )   (4,101 )
    Loss on extinguishment of debt     (3,983 )   —  
    Total G&A     2,386,528     2,041,172  
    Promotional (ongoing)(14)(15)     (628,938 )   (486,326 )
    Regulatory charges(13)     (47,278 )   (71,320 )
    Employee share-based compensation     (88,957 )   (66,024 )
    Acquisition costs(15)     (105,905 )   (48,103 )
    Core G&A   $ 1,515,450   $ 1,369,399  

    (13) Regulatory charges for the three months ended September 30, 2024 and year ended December 31, 2024 include charges related to a settlement with the SEC to resolve the Company’s civil investigation of certain elements of the Company’s Anti-Money Laundering (“AML”) compliance program. The Company has recorded an $18.0 million charge for the quarter ended September 30, 2024 and reached a settlement with the staff of the SEC and paid the civil monetary penalty in January 2025. Regulatory charges for the year ended December 31, 2023 include a $40.0 million charge to reflect the amount of the penalty related to the SEC’s civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications that was not covered by the Company’s captive insurance subsidiary. The Company reached a settlement with the staff of the SEC and paid the civil monetary penalty of $50.0 million in August 2024.

    (14) Promotional (ongoing) includes $13.4 million, $13.0 million and $12.5 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs. Promotional (ongoing) includes $46.6 million and $30.7 million of such support costs for the twelve months ended December 31, 2024 and 2023, respectively.

    (15) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    Acquisition costs        
    Fair value mark on contingent consideration(36)   $ 11,249   $ 5,849   $ 26,712  
    Compensation and benefits     15,950     8,352     2,829  
    Professional services     7,357     6,685     3,664  
    Promotional(14)     2,235     1,964     863  
    Other     470     (607 )   863  
    Acquisition costs   $ 37,261   $ 22,243   $ 34,931  

    The below table summarizes the primary components of acquisition costs for the years presented (in thousands):

        Years Ended December 31,
          2024     2023  
    Acquisition costs      
    Fair value mark on contingent consideration(36)   $ 41,721   $ 26,712  
    Professional services     20,855     10,044  
    Compensation and benefits     34,980     6,069  
    Promotional(14)     7,006     3,593  
    Other     1,343     1,685  
    Acquisition costs   $ 105,905   $ 48,103  

    (16) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    EBITDA and adjusted EBITDA Reconciliation        
    Net income   $ 270,749   $ 255,303   $ 217,555  
    Interest expense on borrowings     81,979     67,779     54,415  
    Provision for income taxes     70,532     92,045     76,232  
    Depreciation and amortization     92,032     78,338     67,936  
    Amortization of other intangibles     42,614     32,461     28,618  
    EBITDA   $ 557,906   $ 525,926   $ 444,756  
    Regulatory charges(13)     —     18,000     —  
    Acquisition costs(15)     37,261     22,243     34,931  
    Departure of former Chief Executive Officer(a)     (14,367 )   —     —  
    Loss on extinguishment of debt     3,983     —     —  
    Adjusted EBITDA   $ 584,783   $ 566,169   $ 479,687  

    (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

    The below table is a reconciliation of net income to EBITDA and adjusted EBITDA for the years presented (in thousands):

          2024     2023  
    EBITDA and adjusted EBITDA Reconciliation      
    Net income   $ 1,058,616   $ 1,066,250  
    Interest expense on borrowings     274,181     186,804  
    Provision for income taxes     334,276     378,525  
    Depreciation and amortization     308,527     246,994  
    Amortization of other intangibles     135,234     107,211  
    EBITDA   $ 2,110,834   $ 1,985,784  
    Regulatory charges(13)     18,000     40,000  
    Acquisition costs(15)     105,905     48,103  
    Departure of former Chief Executive Officer(a)     (14,367 )   —  
    Loss on extinguishment of debt     3,983     —  
    Adjusted EBITDA   $ 2,224,355   $ 2,073,887  

    (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

    (17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

        Q4 2024 Q3 2024 Q4 2023
        Amount Per Share Amount Per Share Amount Per Share
    Net income / earnings per diluted share   $ 270,749   $ 3.59   $ 255,303   $ 3.39   $ 217,555   $ 2.85  
    Regulatory charges(13)     —     —     18,000     0.24     —     —  
    Amortization of other intangibles     42,614     0.57     32,461     0.43     28,618     0.38  
    Acquisition costs(15)     37,261     0.49     22,243     0.29     34,931     0.46  
    Departure of former Chief Executive Officer(a)     (14,367 )   (0.19 )   —     —     —     —  
    Loss on extinguishment of debt     3,983     0.05     —     —     —     —  
    Tax benefit     (19,978 )   (0.27 )   (14,650 )   (0.19 )   (13,789 )   (0.18 )
    Adjusted net income / adjusted EPS   $ 320,262   $ 4.25   $ 313,357   $ 4.16   $ 267,315   $ 3.51  
    Diluted share count     75,337       75,405       76,240    
    Note: Totals may not foot due to rounding.              

    (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

    Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the years presented (in thousands, except per share data):

        Years Ended December 31,
          2024     2023  
        Amount Per Share Amount Per Share
    Net income / earnings per diluted share   $ 1,058,616   $ 14.03   $ 1,066,250   $ 13.69  
    Regulatory charges(13)     18,000     0.24     40,000     0.51  
    Amortization of other intangibles     135,234     1.79     107,211     1.38  
    Acquisition costs(15)     105,905     1.40     48,103     0.62  
    Departure of former Chief Executive Officer(a)     (14,367 )   (0.19 )   —     —  
    Loss on extinguishment of debt     3,983     0.05     —     —  
    Tax benefit     (62,089 )   (0.82 )   (37,418 )   (0.48 )
    Adjusted net income / adjusted EPS   $ 1,245,282   $ 16.51   $ 1,224,146   $ 15.72  
    Diluted share count     75,427       77,861    
    Note: Totals may not foot due to rounding.          

    (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.

    (18) Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s seven introducing broker-dealer subsidiaries.

    (19) Assets on the Company’s corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company’s independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.

    (20) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.

    (21) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

    (22) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

    (23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

    (24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

    (25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

        Q4 2024 Q3 2024 Q4 2023
    Purchased money market funds   $ 41.0   $ 38.5   $ 29.5  

    (26) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

    (27) Calculated by dividing revenue for the period by the average balance during the period.

    (28) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):

        Q4 2024 Q3 2024 Q4 2023
    EBITDA and Credit Agreement EBITDA Reconciliations        
    Net income   $ 1,058,616   $ 1,005,422   $ 1,066,250  
    Interest expense on borrowings     274,181     246,618     186,804  
    Provision for income taxes     334,276     339,977     378,525  
    Depreciation and amortization     308,527     284,431     246,994  
    Amortization of other intangibles     135,234     121,238     107,211  
    EBITDA   $ 2,110,834   $ 1,997,686   $ 1,985,784  
    Credit Agreement Adjustments:        
    Acquisition costs and other(15)(37)   $ 223,614   $ 236,007   $ 110,170  
    Employee share-based compensation     88,957     78,425     66,024  
    M&A accretion(38)     235,048     26,265     30,268  
    Advisor share-based compensation     2,597     2,503     2,561  
    Loss on extinguishment of debt     3,983     —     —  
    Credit Agreement EBITDA   $ 2,665,033   $ 2,340,886   $ 2,194,807  

    (29) Calculated based on the average advisor count from the current period and prior periods.

    (30) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.

    (31) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.

    (32) Refers to active subscriptions related to professional services offerings (CFO Solutions, Marketing Solutions, Admin Solutions, Advisor Institute, Bookkeeping, Partial Book Sales, CFO Essentials, Digital Marketing, Payroll Services and HR Solutions) and business optimizer offerings (M&A Solutions, Digital Office, Resilience Plans and Assurance Plans), as well as planning and advice services (Paraplanning, Tax Planning, and High Net Worth Services) for which subscriptions are the number of advisors using the service.

    (33) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.

    (34) Capital expenditures represent cash payments for property and equipment during the period.

    (35) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period.

    (36) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the consolidated statements of income.

    (37) Acquisition costs and other primarily include acquisition costs, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company’s former Chief Executive Officer and related clawback of share-based compensation awards, an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with certain elements of the Company’s AML compliance program, and a $40.0 million regulatory charge recognized during the three months ended September 30, 2023 to reflect the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices that have not been approved by the Company.

    (38) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of the transaction.

    The MIL Network –

  • MIL-OSI: FinWise Bancorp Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    – Loan Originations of $5.0 Billion for 2024, including $1.3 Billion for Fourth Quarter –

    – Net Income of $12.7 Million for 2024, including $2.8 Million for Fourth Quarter –

    – Diluted Earnings Per Share of $0.93 for 2024, including $0.20 for Fourth Quarter –

    MURRAY, Utah, Jan. 30, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter and fiscal year ended December 31, 2024.

    Fourth Quarter 2024 Highlights

    • Loan originations totaled $1.3 billion, compared to $1.4 billion for the quarter ended September 30, 2024, and $1.2 billion for the fourth quarter of the prior year
    • Net interest income was $15.5 million, compared to $14.8 million for the quarter ended September 30, 2024, and $14.4 million for the fourth quarter of the prior year
    • Net income was $2.8 million, compared to $3.5 million for the quarter ended September 30, 2024, and $4.2 million for the fourth quarter of the prior year
    • Diluted earnings per share (“EPS”) were $0.20 for the quarter, compared to $0.25 for the quarter ended September 30, 2024, and $0.32 for the fourth quarter of the prior year
    • Efficiency ratio1 was 64.2%, compared to 67.5% for the quarter ended September 30, 2024, and 56.0% for the fourth quarter of the prior year
    • Nonperforming loan balances were $36.4 million as of December 31, 2024, compared to $30.6 million as of September 30, 2024, and $27.1 million as of December 31, 2023. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively

    “Our fourth quarter results capped off a strong 2024 for FinWise, as we made significant progress in our goal to expand and diversify our sources of revenue to enhance the company’s long-term growth,” said Kent Landvatter, CEO of FinWise. “We were also pleased with the rebound in loan originations from existing programs, as well as the number of new strategic programs we announced, including four new Lending programs, two of which include our Credit Enhancement product, one Payments and one Credit Card program. As we look ahead to 2025, we are excited about the outlook, and currently anticipate continued stability in originations from existing programs, acceleration in production from new and ramping programs, a strong pipeline for new partners and remain committed to generating positive operating leverage.”

    ____________________

    1 See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.

    Selected Financial and Other Data

    ($ in thousands, except per share amounts) As of and for the Three Months Ended   As of and for the Years Ended
      12/31/2024   9/30/2024   12/31/2023   12/31/2024   12/31/2023
    Amount of loans originated $ 1,305,028     $ 1,448,251     $ 1,177,704     $ 5,015,662     $ 4,303,361  
    Net income $ 2,793     $ 3,454     $ 4,156     $ 12,742     $ 17,460  
    Diluted EPS $ 0.20     $ 0.25     $ 0.32     $ 0.93     $ 1.33  
    Return on average assets   1.6 %     2.1 %     2.9 %     2.0 %     3.5 %
    Return on average equity   6.5 %     8.3 %     10.8 %     7.7 %     11.9 %
    Yield on loans   14.01 %     14.16 %     16.21 %     14.47 %     17.05 %
    Cost of interest-bearing deposits   4.30 %     4.85 %     4.82 %     4.57 %     4.22 %
    Net interest margin   10.00 %     9.70 %     10.61 %     9.99 %     11.65 %
    Efficiency ratio(1)   64.2 %     67.5 %     56.0 %     64.9 %     53.4 %
    Tangible book value per share(2) $ 13.15     $ 12.90     $ 12.41     $ 13.15     $ 12.41  
    Tangible shareholders’ equity to tangible assets(2)   23.3 %     24.9 %     26.5 %     23.3 %     26.5 %
    Leverage ratio (Bank under CBLR)   20.6 %     20.3 %     20.7 %     20.6 %     20.7 %
    Full-time equivalent employees   196       194       162       196       162  
                                           

    (1) This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.
    (2) Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.

    Net Interest Income
    Net interest income was $15.5 million for the fourth quarter of 2024, compared to $14.8 million for the prior quarter and $14.4 million for the prior year period. The increase from the prior quarter was primarily due to an average balance increase in the loans held for investment (“HFI”) portfolio and a decrease in yields paid on interest-earning deposits, principally certificate of deposits. Further contributing to the increase from the prior quarter was a third quarter 2024 decrease in net interest income of $0.5 million for accrued interest not previously reversed at the time loans were deemed nonperforming. The increase from the prior year period was primarily due to increases in the average balances of loans held-for-sale and loans HFI portfolios and was partially offset by yield decreases on those same portfolios as well as decreased volumes and rates paid on the Company’s interest bearing deposits.

    Loan originations totaled $1.3 billion for the fourth quarter, compared to $1.4 billion for the prior quarter of 2024 and $1.2 billion for the prior year period.

    Net interest margin for the fourth quarter of 2024 was 10.00%, compared to 9.70% for the prior quarter and 10.61% for the prior year period. The increase in net interest margin from the prior quarter is primarily attributable to the current quarter decrease in the cost of certificates of deposits and the growth in the overall loan portfolio. The decrease from the prior year period is primarily attributable to the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans.

    Provision for Credit Losses
    The Company’s provision for credit losses was $3.9 million for the fourth quarter of 2024, compared to $2.2 million for the prior quarter and $3.2 million for the prior year period. The provision for credit losses increased when compared to the prior quarter and prior year period due primarily to a net charge-off on the non-guaranteed portion of SBA loans in the fourth quarter of 2024 of $1.0 million.

    Non-interest Income

      Three Months Ended
    ($ in thousands) 12/31/2024   9/30/2024   12/31/2023
    Non-interest income          
    Strategic Program fees $ 4,899     $ 4,862     $ 4,229  
    Gain on sale of loans   872       393       440  
    SBA loan servicing fees, net   181       87       572  
    Change in fair value on investment in BFG   (200 )     (100 )     200  
    Credit enhancement income   25       47       —  
    Other miscellaneous income   (174 )     765       716  
    Total non-interest income $ 5,603     $ 6,054     $ 6,157  
     

    The decrease in non-interest income from the prior quarter and prior year period was primarily due to a decrease in other miscellaneous income resulting from the $0.9 million charge-off of unamortized premium on approximately $160.0 million of callable CDs which were called during the fourth quarter of 2024 and replaced with lower cost CDs. This decrease was partially offset by the $0.5 million gain on sale of the guaranteed portion of SBA loans that occurred during the fourth quarter of 2024.

    Non-interest Expense

      Three Months Ended
    ($ in thousands) 12/31/2024   9/30/2024   12/31/2023
    Non-interest expense          
    Salaries and employee benefits $ 9,375     $ 9,659     $ 7,396  
    Professional services   556       1,331       1,433  
    Occupancy and equipment expenses   1,094       1,046       923  
    Credit enhancement expense   5       3       —  
    Other operating expenses   2,534       2,010       1,751  
    Total non-interest expense $ 13,564     $ 14,049     $ 11,503  
     

    The decrease in non-interest expense from the prior quarter was primarily due to a decrease in salaries and employee benefits resulting from bonus accrual reductions and a decrease in professional services expense resulting from a reduction in accruals for legal services. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure.

    Reflecting the expenses incurred to develop the Company’s business infrastructure, the Company’s efficiency ratio was 64.2% for the fourth quarter of 2024, compared to 67.5% for the prior quarter and 56.0% for the prior year period. As a result of the infrastructure build, the Company anticipates the efficiency ratio will remain elevated until the Company begins to realize the revenues associated with the new programs developed.

    Tax Rate
    The Company’s effective tax rate was 24.3% for the fourth quarter of 2024, compared to 25.1% for the prior quarter and 28.5% for the prior year period. The decrease from the prior quarter was due primarily to more favorable resolution of historical state tax matters during the fourth quarter of 2024. The decrease from the prior year period was primarily due to a reduction in permanent differences impacting income tax expense.

    Net Income
    Net income was $2.8 million for the fourth quarter of 2024, compared to $3.5 million for the prior quarter and $4.2 million for the prior year period. The changes in net income for the three months ended December 31, 2024 compared to the prior quarter and prior year period are the result of the factors discussed above.

    Balance Sheet
    The Company’s total assets were $746.0 million as of December 31, 2024, an increase from $683.0 million as of September 30, 2024 and $586.2 million as of December 31, 2023. The increase in total assets from September 30, 2024 was primarily due to continued growth in the Company’s loans HFI, net, and loans held-for-sale portfolios of $29.7 million and $7.6 million, respectively, as well as an increase of $21.5 million in interest-bearing cash deposits. The increase in total assets compared to December 31, 2023 was primarily due to increases in the Company’s loans HFI, net, and loans held-for-sale portfolios of $89.3 million and $44.1 million, respectively, as well as an increase in investment securities available-for-sale of $29.9 million, partially offset by a decrease of $17.0 million in interest-bearing deposits.

    The following table shows the gross loans HFI balances as of the dates indicated:

      12/31/2024   9/30/2024   12/31/2023
    ($ in thousands) Amount   % of total
    loans    		   Amount   % of total
    loans    		   Amount   % of total
    loans
    SBA $ 255,056       54.8 %   $ 251,439       57.9 %   $ 239,922       64.5 %
    Commercial leases   70,153       15.1 %     64,277       14.8 %     38,110       10.2 %
    Commercial, non-real estate   3,691       0.8 %     3,025       0.7 %     2,457       0.7 %
    Residential real estate   51,574       11.1 %     41,391       9.5 %     38,123       10.2 %
    Strategic Program loans   20,122       4.3 %     19,409       4.5 %     19,408       5.2 %
    Commercial real estate:                      
    Owner occupied   41,046       8.8 %     32,480       7.5 %     20,798       5.6 %
    Non-owner occupied   1,379       0.3 %     2,736       0.7 %     2,025       0.5 %
    Consumer   22,212       4.8 %     19,206       4.4 %     11,372       3.1 %
    Total period end loans $ 465,233       100.0 %   $ 433,963       100.0 %   $ 372,215       100.0 %
     

    Note: SBA loans as of December 31, 2024, September 30, 2024 and December 31, 2023 include $158.7 million, $156.3 million and $131.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans with annual interest rates below 36% as of December 31, 2024, September 30, 2024 and December 31, 2023 was $3.1 million, $3.2 million and $3.6 million, respectively.

    Total gross loans HFI as of December 31, 2024 increased compared to September 30, 2024 and December 31, 2023. The Company experienced growth across all loan portfolios, with the exception of non-owner occupied CRE, consistent with its strategy to increase its loan portfolio with higher quality, lower rate loans.

    The following table shows the Company’s deposit composition as of the dates indicated:

      As of
    ​ 12/31/2024   9/30/2024   12/31/2023
    ($ in thousands) Amount   Percent   Amount   Percent   Amount   Percent
    Noninterest-bearing demand deposits $ 126,782       23.3 %   $ 142,785       29.2 %   $ 95,486       23.6 %
    Interest-bearing deposits:                      
    Demand   71,403       13.1 %     58,984       12.1 %     50,058       12.4 %
    Savings   9,287       1.7 %     9,592       1.9 %     8,633       2.1 %
    Money market   16,709       3.0 %     15,027       3.1 %     11,661       2.9 %
    Time certificates of deposit   320,771       58.9 %     262,271       53.7 %     238,995       59.0 %
    Total period end deposits $ 544,952       100.0 %   $ 488,659       100.0 %   $ 404,833       100.0 %
     

    The increase in total deposits from September 30, 2024 and December 31, 2023 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from December 31, 2023 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.

    Total shareholders’ equity as of December 31, 2024 increased $3.4 million to $173.7 million from $170.4 million at September 30, 2024. Compared to December 31, 2023, total shareholders’ equity increased by $18.7 million from $155.1 million. The increase from September 30, 2024 was primarily due to the Company’s net income. The increase from December 31, 2023 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG, partially offset by the repurchase of common stock under the Company’s share repurchase program.

    Bank Regulatory Capital Ratios
    The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

      As of    
    Capital Ratios 12/31/2024   9/30/2024   12/31/2023   Well-Capitalized Requirement
    Leverage ratio   20.6 %     20.3 %     20.7 %     9.0 %
                                   

    The leverage ratio increase from the prior quarter resulted primarily from earnings generated by operations growing at a faster pace than average assets. The slight decrease in the leverage ratio from the prior year period resulted primarily from the growth in the loan portfolio. The Bank’s capital levels remain significantly above well-capitalized guidelines as of December 31, 2024.

    Share Repurchase Program
    Since the share repurchase program’s inception in March 2024 through December 31, 2024, the Company has repurchased a total of 44,608 shares for $0.5 million. There were no shares repurchased during the fourth quarter of 2024.

    Asset Quality
    The recorded balances of nonperforming loans were $36.4 million, or 7.8% of total loans HFI, as of December 31, 2024, compared to $30.6 million, or 7.1% of total loans HFI, as of September 30, 2024 and $27.1 million, or 7.3% of total loans HFI, as of December 31, 2023. The balances of nonperforming loans guaranteed by the SBA were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The increase in nonperforming loans from the prior periods was primarily attributable to lingering financial stress on borrowers from the longer than expected higher interest rate environment. The Company’s allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024 compared to 2.9% as of September 30, 2024 and 3.5% as of December 31, 2023. The decrease in the ratio from the prior quarter and prior year period was primarily due to the increased balance of the guaranteed portion of the SBA 7(a) program loans, growth in the balances of lower risk CRE, leasing and other HFI loan portfolios, and the shift in our Strategic Program HFI loan balances to programs with lower historical losses.

    The Company’s net charge-offs were $3.2 million, $2.4 million and $3.4 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The increase from the prior quarter is primarily due to charge-offs relating to SBA loans that moved to nonaccrual status in the fourth quarter as well as increased net charge-offs in the Strategic Program loans portfolio. The decrease from the prior year period is primarily due to increased recoveries during the fourth quarter of 2024.

    The following table presents a summary of changes in the allowance for credit losses and asset quality ratios for the periods indicated:

      Three Months Ended
    ​($ in thousands) 12/31/2024   9/30/2024   12/31/2023
    Allowance for credit losses:          
    Beginning balance $ 12,661     $ 13,127     $ 12,986  
    Provision for credit losses(1)   3,766       1,944       3,272  
    Charge offs          
    Residential real estate   (206 )     (27 )     (104 )
    Commercial real estate          
    Owner occupied   (411 )     (103 )     (561 )
    Non-owner occupied   —       (221 )     —  
    Commercial and industrial   (555 )     (96 )     (281 )
    Consumer   (60 )     (15 )     (22 )
    Lease financing receivables       (113 )     —  
    Strategic Program loans   (2,528 )     (2,360 )     (2,656 )
    Recoveries          
    Construction and land development   —       —       —  
    Residential real estate   6       3       3  
    Residential real estate multifamily   —       —       —  
    Commercial real estate          
    Owner occupied   112       219       (11 )
    Non-owner occupied   —       —       —  
    Commercial and industrial   —       2       1  
    Consumer   1       4       —  
    Lease financing receivables   77       8       —  
    Strategic Program loans   313       289       261  
    Ending Balance $ 13,176     $ 12,661     $ 12,888  
               
    Credit Quality Data As of and For the Three Months Ended
    ($ in thousands) 12/31/2024   9/30/2024   12/31/2023
    Nonperforming loans:          
    Guaranteed $ 19,204     $ 17,804     $ 14,966  
    Unguaranteed   17,227       12,844       12,161  
    Total nonperforming loans $ 36,431     $ 30,648     $ 27,127  
    Allowance for credit losses $ 13,176     $ 12,661     $ 12,888  
    Net charge offs $ 3,249     $ 2,409     $ 3,370  
    Total loans held for investment $ 465,233     $ 433,963     $ 372,215  
    Total loans held for investment less guaranteed balances $ 306,482     $ 277,635     $ 240,471  
    Average loans held for investment $ 454,474     $ 422,820     $ 350,852  
    Nonperforming loans to total loans held for investment   7.8 %     7.1 %     7.3 %
    Net charge offs to average loans held for investment (annualized)   2.8 %     2.3 %     3.8 %
    Allowance for credit losses to loans held for investment   2.8 %     2.9 %     3.5 %
    Allowance for credit losses to loans held for investment less guaranteed balances   4.3 %     4.6 %     5.4 %

    (1) Excludes the provision for unfunded commitments.

    Webcast and Conference Call Information
    FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the fourth quarter and year ended December 31, 2024. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

    The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13750402. Please dial the number 10 minutes prior to the scheduled start time.

    A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

    Website Information
    The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

    About FinWise Bancorp
    FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payments solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Its Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

    Contacts
    investors@finwisebank.com
    media@finwisebank.com

    “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
    This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

    There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology industry, as well as the continued evolution of the regulation of this industry; (b) the ability of the Company’s Strategic Program or Fintech Banking and Payments Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Strategic Program and Fintech Banking and Payments Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) new lines of business or new products and services; (p) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest-rate and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) results of examinations of the Company by its regulators; (dd) the Company’s involvement from time to time in legal proceedings; (ee) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (ff) future equity and debt issuances; (gg) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; and (hh) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent reports on Form 10-Q and Form 8-K.

    The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.

    Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.

    FINWISE BANCORP
    CONSOLIDATED BALANCE SHEETS
    ($ in thousands; Unaudited)
     
      12/31/2024   9/30/2024   12/31/2023
    ASSETS          
    Cash and cash equivalents          
    Cash and due from banks $ 9,600     $ 7,705     $ 411  
    Interest-bearing deposits   99,562       78,063       116,564  
    Total cash and cash equivalents   109,162       85,768       116,975  
    Investment securities available-for-sale, at fair value   29,930       30,472       —  
    Investment securities held-to-maturity, at cost   12,565       13,270       15,388  
    Investment in Federal Home Loan Bank (“FHLB”) stock, at cost   349       349       238  
    Strategic Program loans held-for-sale, at lower of cost or fair value   91,588       84,000       47,514  
    Loans held for investment, net   447,812       418,065       358,560  
    Credit enhancement asset   111       86       —  
    Premises and equipment, net   16,328       17,099       14,630  
    Accrued interest receivable   3,566       3,098       3,573  
    SBA servicing asset, net   3,273       3,261       4,231  
    Investment in Business Funding Group (“BFG”), at fair value   7,700       7,900       4,200  
    Operating lease right-of-use (“ROU”) assets   3,564       3,735       4,293  
    Income tax receivable, net   8,868       3,317       2,400  
    Other assets   11,160       12,611       14,219  
    Total assets $ 745,976     $ 683,031     $ 586,221  
    ​          
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Liabilities          
    Deposits          
    Noninterest-bearing $ 126,782     $ 142,785     $ 95,486  
    Interest-bearing   418,170       345,874       309,347  
    Total deposits   544,952       488,659       404,833  
    Accrued interest payable   1,494       647       619  
    Income taxes payable, net   4,423       —       1,873  
    Deferred taxes, net   899       1,036       748  
    PPP Liquidity Facility   64       106       190  
    Operating lease liabilities   5,302       5,542       6,296  
    Other liabilities   15,122       16,671       16,606  
    Total liabilities   572,256       512,661       431,165  
               
    Shareholders’ equity          
    Common stock   13       13       12  
    Additional paid-in-capital   56,926       56,214       51,200  
    Retained earnings   116,594       113,801       103,844  
    Accumulated other comprehensive income, net of tax   187       342       —  
    Total shareholders’ equity   173,720       170,370       155,056  
    Total liabilities and shareholders’ equity $ 745,976     $ 683,031     $ 586,221  
    FINWISE BANCORP
    CONSOLIDATED STATEMENTS OF INCOME
    ($ in thousands, except per share amounts; Unaudited)
     
      Three Months Ended
      12/31/2024   9/30/2024   12/31/2023
    Interest income          
    Interest and fees on loans $ 18,388     $ 17,590     $ 16,192  
    Interest on securities   401       298       101  
    Other interest income   573       1,036       1,759  
    Total interest income   19,362       18,924       18,052  
               
    Interest expense          
    Interest on deposits   3,833       4,161       3,685  
    Total interest expense   3,833       4,161       3,685  
    Net interest income   15,529       14,763       14,367  
               
    Provision for credit losses   3,878       2,157       3,210  
    Net interest income after provision for credit losses   11,651       12,606       11,157  
               
    Non-interest income          
    Strategic Program fees   4,899       4,862       4,229  
    Gain on sale of loans, net   872       393       440  
    SBA loan servicing fees, net   181       87       572  
    Change in fair value on investment in BFG   (200 )     (100 )     200  
    Credit enhancement income   25       47       —  
    Other miscellaneous (loss) income   (174 )     765       716  
    Total non-interest income   5,603       6,054       6,157  
               
    Non-interest expense          
    Salaries and employee benefits   9,375       9,659       7,396  
    Professional services   556       1,331       1,433  
    Occupancy and equipment expenses   1,094       1,046       923  
    Credit enhancement expense   5       3       —  
    Other operating expenses   2,534       2,010       1,751  
    Total non-interest expense   13,564       14,049       11,503  
    Income before income taxes   3,690       4,611       5,811  
               
    Provision for income taxes   897       1,157       1,655  
    Net income $ 2,793     $ 3,454     $ 4,156  
               
    Earnings per share, basic $ 0.21     $ 0.26     $ 0.33  
    Earnings per share, diluted $ 0.20     $ 0.25     $ 0.32  
               
    Weighted average shares outstanding, basic   12,659,986       12,658,557       12,261,101  
    Weighted average shares outstanding, diluted   13,392,411       13,257,835       12,752,051  
    Shares outstanding at end of period   13,211,640       13,211,160       12,493,565  
    FINWISE BANCORP
    CONSOLIDATED STATEMENTS OF INCOME
    ($ in thousands, except per share amounts)
     
      Years Ended
      12/31/2024   12/31/2023
      (Unaudited)    
    Interest income      
    Interest and fees on loans $ 68,892     $ 58,445  
    Interest on securities   897       338  
    Other interest income   4,563       5,751  
    Total interest income   74,352       64,534  
           
    Interest expense      
    Interest on deposits   15,440       9,974  
    Other interest expense   —       1  
    Total interest expense   15,440       9,975  
    Net interest income   58,912       54,559  
           
    Provision for credit losses   11,573       11,638  
    Net interest income after provision for credit losses   47,339       42,921  
           
    Non-interest income      
    Strategic Program fees   17,762       15,914  
    Gain on sale of loans, net   2,036       1,684  
    SBA loan servicing fees, net   1,137       1,842  
    Change in fair value on investment in BFG   (624 )     (600 )
    Credit enhancement income   111       —  
    Other miscellaneous income   2,063       2,616  
    Total non-interest income   22,485       21,456  
           
    Non-interest expense      
    Salaries and employee benefits   35,205       25,751  
    Professional services   4,736       4,961  
    Occupancy and equipment expenses   4,240       3,312  
    Credit enhancement expense   8       —  
    Other operating expenses   8,646       6,540  
    Total non-interest expense   52,835       40,564  
    Income before income taxes   16,989       23,813  
           
    Provision for income taxes   4,247       6,353  
    Net income $ 12,742     $ 17,460  
           
    Earnings per share, basic $ 0.98     $ 1.38  
    Earnings per share, diluted $ 0.93     $ 1.33  
           
    Weighted average shares outstanding, basic   12,612,455       12,488,564  
    Weighted average shares outstanding, diluted   13,228,869       12,909,648  
    Shares outstanding at end of period   13,211,640       12,493,565  
    FINWISE BANCORP
    AVERAGE BALANCES, YIELDS, AND RATES
    ($ in thousands; Unaudited)
     
    ​ Three Months Ended
    ​ 12/31/2024   9/30/2024   12/31/2023
      Average Balance   Interest   Average
    Yield/Rate    		   Average
    Balance    		   Interest   Average
    Yield/Rate    		   Average
    Balance    		   Interest   Average
    Yield/Rate
    Interest earning assets:                                  
    Interest-bearing deposits $ 52,375     $ 573       4.35 %   $ 78,967     $ 1,036       5.22 %   $ 125,462     $ 1,759       5.56 %
    Investment securities   43,212       401       3.69 %     33,615       298       3.53 %     15,670       101       2.56 %
    Strategic Program loans held-for-sale   67,676       5,040       29.63 %     70,123       4,913       27.87 %     45,370       4,307       37.66 %
    Loans held for investment   454,474       13,348       11.68 %     422,820       12,677       11.93 %     350,852       11,885       13.44 %
    Total interest earning assets   617,737       19,362       12.47 %     605,525       18,924       12.43 %     537,354       18,052       13.33 %
    Noninterest-earning assets   55,767               56,290               32,202          
    Total assets $ 673,504             $ 661,815             $ 569,556          
    Interest-bearing liabilities:                                  
    Demand $ 57,305     $ 617       4.28 %   $ 55,562     $ 547       3.92 %   $ 47,784     $ 562       4.67 %
    Savings   9,192       9       0.40 %     9,538       18       0.76 %     8,096       13       0.65 %
    Money market accounts   15,726       147       3.73 %     13,590       127       3.72 %     13,419       53       1.55 %
    Certificates of deposit   272,799       3,060       4.46 %     262,537       3,469       5.26 %     234,088       3,057       5.18 %
    Total deposits   355,022       3,833       4.30 %     341,227       4,161       4.85 %     303,387       3,685       4.82 %
    Other borrowings   79       —       0.35 %     112       —       0.35 %     206       —       0.35 %
    Total interest-bearing liabilities   355,101       3,833       4.29 %     341,339       4,161       4.85 %     303,593       3,685       4.82 %
    Noninterest-bearing deposits   119,945               127,561               92,767          
    Noninterest-bearing liabilities   27,636               25,536               21,099          
    Shareholders’ equity   170,823               167,379               152,097          
    Total liabilities and shareholders’ equity $ 673,505             $ 661,815             $ 569,556          
    Net interest income and interest rate spread     $ 15,529       8.18 %       $ 14,763       7.58 %       $ 14,367       8.51 %
    Net interest margin           10.00 %             9.70 %             10.61 %
    Ratio of average interest-earning assets to average interest- bearing liabilities           173.96 %             177.40 %             177.00 %
    FINWISE BANCORP
    AVERAGE BALANCES, YIELDS, AND RATES
    ($ in thousands; Unaudited)
     
    ​ Years Ended
    ​ 12/31/2024   12/31/2023
      Average
    Balance    		   Interest   Average
    Yield/Rate    		   Average
    Balance    		   Interest   Average
    Yield/Rate
    Interest earning assets:                      
    Interest-bearing deposits $ 87,086     $ 4,563       5.24 %   $ 110,866     $ 5,751       5.19 %
    Investment securities   26,691       897       3.36 %     14,731       338       2.30 %
    Loans held for sale   58,896       17,698       30.05 %     39,090       15,051       38.50 %
    Loans held for investment   417,207       51,194       12.27 %     303,784       43,394       14.28 %
    Total interest earning assets   589,880       74,352       12.60 %     468,472       64,534       13.78 %
    Noninterest-earning assets   47,598               25,269          
    Total assets $ 637,478             $ 493,740          
    Interest-bearing liabilities:                      
    Demand $ 59,317     $ 2,108       3.55 %   $ 45,454     $ 1,856       4.08 %
    Savings   9,574       66       0.69 %     8,207       51       0.62 %
    Money market accounts   12,284       452       3.68 %     13,665       362       2.65 %
    Certificates of deposit   256,575       12,814       4.99 %     168,887       7,705       4.56 %
    Total deposits   337,750       15,440       4.57 %     236,213       9,974       4.22 %
    Other borrowings   126       —       0.34 %     251       1       0.35 %
    Total interest-bearing liabilities   337,876       15,440       4.57 %     236,464       9,975       4.22 %
    Noninterest-bearing deposits   107,760               93,126          
    Noninterest-bearing liabilities   26,634               17,250          
    Shareholders’ equity   165,208               146,901          
    Total liabilities and shareholders’ equity $ 637,478             $ 493,740          
    Net interest income and interest rate spread     $ 58,912       8.03 %       $ 54,559       9.56 %
    Net interest margin           9.99 %             11.65 %
    Ratio of average interest-earning assets to average interest- bearing liabilities           174.58 %             198.12 %
    Reconciliation of Non-GAAP to GAAP Financial Measures
    (Unaudited)
     
    Efficiency ratio Three Months Ended   Years Ended
      12/31/2024   9/30/2024   12/31/2023   12/31/2024     12/31/2023  
    ​($ in thousands)                      
    Non-interest expense $ 13,564     $ 14,049     $ 11,503     $ 52,835     $ 40,564  
                           
    Net interest income   15,529       14,763       14,367       58,912       54,559  
    Total non-interest income   5,603       6,054       6,157       22,485       21,456  
    Adjusted operating revenue $ 21,132     $ 20,817     $ 20,524     $ 81,397     $ 76,015  
    Efficiency ratio   64.2 %     67.5 %     56.0 %     64.9 %     53.4 %
     

    FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement . When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.

    The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans HFI and average yield on loans HFI:

      As of and for the Three Months Ended   As of and for the Year Ended
    ($ in thousands; unaudited) 12/31/2024   12/31/2024
      Total
    Average
    Loans HFI    		   Total
    Interest
    Income on
    Loans HFI    		   Average
    Yield on
    Loans HFI    		   Total
    Average
    Loans HFI    		   Total
    Interest
    Income on
    Loans HFI    		   Average
    Yield on
    Loans HFI
    Before adjustment for credit enhancement $ 454,474     $ 13,348       11.68 %   $ 417,207     $ 51,194       12.27 %
    Less: credit enhancement expense       (5 )             (8 )    
    Net of adjustment for credit enhancement expenses $ 454,474     $ 13,343       11.68 %   $ 417,207     $ 51,186       12.27 %
     
     

    Total interest income on loans HFI net of credit enhancement expense and the average yield on loans HFI are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans HFI and the respective average yield on loans HFI, the most directly comparable GAAP measures.

    The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:

      As of and for the Three Months Ended   As of and for the Year Ended
      12/31/2024   12/31/2024
    ($ in thousands; unaudited) Total
    Average
    Interest-
    Earning
    Assets    		   Net Interest
    Income    		   Net Interest
    Margin    		   Total
    Average
    Interest-
    Earning
    Assets    		   Net Interest
    Income    		   Net Interest
    Margin
    Before adjustment for credit enhancement $ 617,737     $ 15,529       10.00 %   $ 589,880     $ 58,912       9.99 %
    Less: credit enhancement expense       (5 )             (8 )    
    Net of adjustment for credit enhancement expenses $ 617,737     $ 15,524       10.00 %   $ 589,880     $ 58,904       9.99 %
     

    Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

    Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:

           
    ($ in thousands; unaudited) Three Months Ended
    December 31, 2024    		   Year Ended
    December 31, 2024
    Total non-interest expense $ 13,564     $ 52,835  
    Less: credit enhancement expense   (5 )     (8 )
    Total non-interest expense less credit enhancement expenses $ 13,559     $ 52,827  
     

    Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.

    Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:

           
    ($ in thousands; unaudited) Three Months Ended December 31, 2024   Year Ended December 31, 2024
    Total non-interest income $ 5,603     $ 22,485  
    Less: credit enhancement income   (25 )     (111 )
    Total non-interest income less credit enhancement income $ 5,578     $ 22,374  
     

    Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

    The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:

       
    ($ in thousands; unaudited) As of December 31, 2024
    Allowance for credit losses $ (13,176 )
    Less: allowance for credit losses related to credit enhanced loans   (111 )
    Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans $ (13,065 )
     

    The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held for investment with credit enhancement as of December 31, 2024 was approximately $0.9 million.

    The MIL Network –

  • MIL-OSI: HP Inc. Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    PALO ALTO, Calif., Jan. 30, 2025 (GLOBE NEWSWIRE) — HP Inc. (NYSE: HPQ) has declared a cash dividend of $0.2894 per share on the company’s common stock.

    The dividend, the second in HP’s fiscal year 2025, is payable on April 2, 2025, to stockholders of record as of the close of business on March 12, 2025. HP has approximately 0.9 billion shares of common stock outstanding.

    About HP Inc.

    HP Inc. (NYSE: HPQ) is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most. Operating in more than 170 countries, HP delivers a wide range of innovative and sustainable devices, services and subscriptions for personal computing, printing, 3D printing, hybrid work, gaming, and more. For more information, please visit: http://www.hp.com.

    The MIL Network –

  • MIL-OSI: Ellomay Capital Announces Results of Extraordinary General Meeting of Shareholders

    Source: GlobeNewswire (MIL-OSI)

    Tel-Aviv, Israel, Jan. 30, 2025 (GLOBE NEWSWIRE) — Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe, Israel and the USA, today announced that at the extraordinary general meeting of the Company’s shareholders, held on January 30, 2025 (the “EGM”), the Company’s shareholders approved the terms of service and compensation of Mr. Ben Sheizaf, the Company’s Chairman of the Board.

    For more information, please see the Company’s Notice and Proxy Statement relating to the EGM, submitted on Form 6-K to the Securities and Exchange Commission on December 23, 2024.

    About Ellomay Capital Ltd.

    Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe, USA and Israel.

    To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy, Spain, the Netherlands and Texas, USA, including:

      ● Approximately 353.9 MW of operating solar power plants in Spain (including a 300 MW solar plant in owned by Talasol, which is 51% owned by the Company) and approximately 38 MW of operating solar power plants in Italy;
         
      ● 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW, representing about 6%-8% of Israel’s total current electricity consumption;
         
      ● Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively;
         
      ● 83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;
         
      ● Solar projects in Italy with an aggregate capacity of 195 MW that have reached “ready to build” status; and
         
      ● Solar projects in the Dallas Metropolitan area, Texas, USA with an aggregate capacity of 49 MW that are under construction.

    For more information about Ellomay, visit http://www.ellomay.com.

    Information Relating to Forward-Looking Statements

    This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements. The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including changes in electricity prices and demand, regulatory changes increases in interest rates and inflation, changes in the supply and prices of resources required for the operation of the Company’s facilities (such as waste and natural gas) and in the price of oil, the impact of the war and hostilities in Israel and Gaza, the impact of the continued military conflict between Russia and Ukraine, technical and other disruptions in the operations or construction of the power plants owned by the Company and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. These and other risks and uncertainties associated with the Company’s business are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact:
    Kalia Rubenbach (Weintraub)
    CFO
    Tel: +972 (3) 797-1111
    Email: hilai@ellomay.com

    The MIL Network –

  • MIL-OSI: Employers Holdings, Inc. Schedules Fourth Quarter and Full-Year 2024 Earnings Release and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    RENO, Nev., Jan. 30, 2025 (GLOBE NEWSWIRE) — Employers Holdings, Inc. (the “Company”) (NYSE:EIG) today announced that it will release its fourth quarter and full-year 2024 financial results after market close on Thursday, February 20, 2025, after which these materials will be available on the Company’s website at www.employers.com through the “Investors” link.

    Conference Call Details
    The Company will then review these financial results via a conference call and webcast on Friday, February 21, 2025, at 11:00 a.m. EST / 8:00 a.m. PST.

    To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number. The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

    An archived version of the webcast will be accessible on the Company’s website following the live call.

    About EMPLOYERS

    Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

    EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

    EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company, and Cerity Insurance Company, all rated A (Excellent) by A.M. Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

    Contact: Michael Paquette mpaquette@employers.com

    The MIL Network –