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MIL-OSI: C&F Financial Corporation Announces Net Income for 2024

Source: GlobeNewswire (MIL-OSI)

TOANO, Va., Jan. 28, 2025 (GLOBE NEWSWIRE) — C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported consolidated net income of $6.0 million for the fourth quarter of 2024, compared to $5.1 million for the fourth quarter of 2023. The Corporation reported consolidated net income of $19.9 million for the year ended December 31, 2024, compared to $23.7 million for the year ended December 31, 2023. The following table presents selected financial performance highlights for the periods indicated:


	For The Quarter Ended						For the Year Ended
Consolidated Financial Highlights (unaudited)	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Consolidated net income (000’s)	$	6,029		$	5,088		$	19,918		$	23,746

Earnings per share – basic and diluted	$	1.87		$	1.50		$	6.01		$	6.92

Annualized return on average equity		10.60	%		10.06	%		9.02	%		11.68	%
Annualized return on average tangible common equity¹		12.17	%		11.74	%		10.37	%		13.58	%
Annualized return on average assets		0.94	%		0.85	%		0.80	%		0.99	%

_________________
¹ For more information about these non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles (GAAP), please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures,” below.

“While the past year’s financial performance reflected the challenges of a dynamic interest rate environment, our fourth quarter earnings were solid, and we are optimistic of earnings momentum heading into the coming year,” commented Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation. “Our net interest margin was down for 2024, however, it stabilized in the fourth quarter, and we are cautiously optimistic about margin performance in 2025. The community banking segment delivered solid loan and deposit growth across all markets. Despite facing headwinds from higher mortgage rates and a low inventory of homes for sale, the mortgage banking segment increased its loan production and net income over 2023. While higher charge-offs weighed on profitability at the consumer finance segment, we were able to achieve significant operational efficiencies during 2024. Despite obstacles and adversities that continually confront the banking industry in general, we believe C&F is well-positioned for the future.”

Key highlights for the fourth quarter and the year ended December 31, 2024 are as follows.

Community banking segment loans grew $21.5 million, or 6.0 percent annualized, and $180.0 million, or 14.1 percent, compared to September 30, 2024 and December 31, 2023, respectively;
Consumer finance segment loans decreased $10.5 million, or 8.8 percent annualized, and $1.7 million, or less than one percent, compared to September 30, 2024 and December 31, 2023, respectively;
Deposits increased $35.0 million, or 6.6 percent annualized, and $104.7 million, or 5.1 percent, compared to September 30, 2024 and December 31, 2023, respectively;
Consolidated annualized net interest margin was 4.13 percent for the fourth quarter of 2024 compared to 4.17 percent for the fourth quarter of 2023 and 4.13 percent in the third quarter of 2024. Consolidated net interest margin was 4.12 percent for the year ended December 31, 2024 compared to 4.31 percent for the year ended December 31, 2023;
The community banking segment recorded no provision for credit losses for the fourth quarter of 2024 and $75,000 for the fourth quarter of 2023, and recorded provision for credit losses of $1.7 million and $1.6 million for the years ended December 31, 2024 and 2023, respectively;
The consumer finance segment recorded provision for credit losses of $3.5 million and $2.4 million for the fourth quarters of 2024 and 2023, respectively, and recorded provision for credit losses of $11.6 million and $6.7 million for the years ended December 31, 2024 and 2023, respectively;
The consumer finance segment experienced net charge-offs at an annualized rate of 3.40 percent of average total loans for the fourth quarter of 2024, compared to 2.72 percent for the fourth quarter of 2023. Net charge-offs as a percentage of average total loans were 2.62 percent for the year ended December 31, 2024, compared to 1.99 percent for the year ended December 31, 2023; and
Mortgage banking segment loan originations increased $32.2 million, or 32.8 percent, to $130.4 million for the fourth quarter of 2024 compared to the fourth quarter of 2023 and increased $29.0 million, or 5.8 percent, to $527.8 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.

Community Banking Segment. The community banking segment reported net income of $6.4 million for the fourth quarter of 2024, compared to $5.2 million for the same period of 2023, due primarily to:

higher interest income resulting from higher average balances of loans and the effects of higher interest rates on asset yields, offset in part by lower average balances of securities;
higher other income from bank owned life insurance policies; and
lower salaries and employee benefits expense due primarily to a reduction in headcount through attrition;

partially offset by:

higher interest expense due primarily to higher rates on deposits and higher average balances of interest-bearing deposits, offset in part by lower average balances of borrowings.

The community banking segment reported net income of $20.3 million for the year ended December 31, 2024, compared to $22.9 million for the same period of 2023, due primarily to:

higher interest expense resulting from higher rates on deposits and higher average balances of interest-bearing deposits, partially offset by lower average balances of borrowings;
higher data processing and consulting costs related to investments in operational technology to improve resilience, efficiency and customer experience;
higher occupancy expense related to branch network improvements, including the relocation of a branch and the opening of a new branch; and
higher salaries and employee benefits expense, which have generally increased in line with market conditions, offset in part by a reduction in headcount through attrition;

partially offset by:

higher interest income resulting from higher average balances of loans and the effects of higher interest rates on asset yields, offset in part by lower average balances of securities;
higher wealth management services income due primarily to higher assets under management;
higher other income from bank owned life insurance policies; and
higher investment income from other equity investments.

Average loans increased $180.8 million, or 14.4 percent, for the fourth quarter of 2024 and increased $164.0 million, or 13.5 percent, for the year ended December 31, 2024, compared to the same periods in 2023, due primarily to growth in the construction, commercial real estate, and residential mortgage segments of the loan portfolio. Average deposits increased $140.2 million, or 6.9 percent, for the fourth quarter of 2024 and increased $110.8 million, or 5.5 percent, for the year ended December 31, 2024, compared to the same periods in 2023, due primarily to higher balance of time deposits, partially offset by decreases in savings and interest-bearing demand deposits and noninterest-bearing demand deposits amid increased competition for deposits and the higher interest rate environment.

Average loan yields and average costs of interest-bearing deposits were higher for the fourth quarter and the year ended December 31, 2024, compared to the same periods of 2023, due primarily to the effects of the higher interest rate environment.

The community banking segment’s nonaccrual loans were $333,000 at December 31, 2024 compared to $406,000 at December 31, 2023. The community banking segment recorded no provision for credit losses for the fourth quarter of 2024 and $1.7 million for the year ended December 31, 2024 compared to $75,000 and $1.6 million for the same periods of 2023. At December 31, 2024, the allowance for credit losses increased to $17.4 million, compared to $16.1 million at December 31, 2023. The allowance for credit losses as a percentage of total loans decreased to 1.20 percent at December 31, 2024 from 1.26 percent at December 31, 2023. The increases in provision and allowance for credit losses are due primarily to growth in the loan portfolio. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected.

Mortgage Banking Segment. The mortgage banking segment reported net income of $87,000 and $1.1 million for the fourth quarter and year ended December 31, 2024, respectively, compared to a net loss of $103,000 and net income of $465,000 for the same periods of 2023, due primarily to:

higher gains on sales of loans and higher mortgage banking fee income due to higher volume of mortgage loan originations; and
lower occupancy expenses due to an effort to reduce overhead costs;

partially offset by:

higher variable expenses tied to mortgage loan origination volume such as commissions and bonuses, reported in salaries and employee benefits; and
lower reversal of provision for indemnifications.

The sustained elevated level of mortgage interest rates, combined with higher home prices and lower levels of inventory, led to a level of mortgage loan originations in 2024 and 2023 for the industry that is lower than recent historical averages. Mortgage loan originations for the mortgage banking segment were $130.4 million for the fourth quarter of 2024, comprised of $15.9 million refinancings and $114.5 million home purchases, compared to $98.2 million, comprised of $12.5 million refinancings and $85.7 million home purchases, for the same period in 2023. Mortgage loan originations for the mortgage banking segment were $527.8 million for the year ended December 31, 2024, comprised of $50.2 million refinancings and $477.6 million home purchases, compared to $498.8 million, comprised of $52.7 million refinancings and $446.1 million home purchases, for the same period in 2023. Mortgage loan originations in the fourth quarter of 2024 decreased $26.6 million compared to the third quarter of 2024 due in part to normal industry seasonal fluctuations. Mortgage loan segment originations include originations of loans sold to the community banking segment, at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals.

During the fourth quarter and year ended December 31, 2024, the mortgage banking segment recorded a reversal of provision for indemnification losses of $85,000 and $460,000, respectively, compared to a reversal of provision for indemnification losses of $150,000 and $585,000 in the same periods of 2023. The mortgage banking segment increased reserves for indemnification losses during 2020 based on widespread forbearance on mortgage loans and economic uncertainty related to the COVID-19 pandemic. The release of indemnification reserves in 2024 and 2023 was due primarily to improvement in the mortgage banking segment’s assessment of borrower payment performance, lower volume of mortgage loan originations in recent years and other factors affecting expected losses on mortgage loans sold in the secondary market, such as time since origination. Management believes that the indemnification reserve is sufficient to absorb losses related to loans that have been sold in the secondary market.

Consumer Finance Segment. The consumer finance segment reported net income of $272,000 and $1.4 million for the fourth quarter and year ended December 31, 2024, respectively, compared to net income of $618,000 and $2.9 million for the same periods in 2023. The decreases in consumer finance segment net income were due primarily to:

higher provision for credit losses due primarily to increased net charge-offs; and
higher interest expense on variable rate borrowings from the community banking segment as a result of higher interest rates and higher average balances of borrowings;

partially offset by:

higher interest income resulting from the effects of higher interest rates on loan yields and higher average balances of loans;
lower salaries and employee benefits expense due to an effort to reduce overhead costs; and
lower loan processing and collection expenses due primarily to efficiency initiatives within the collections department.

Average loans increased $2.5 million, or one percent, for the fourth quarter of 2024 and increased $2.9 million, or one percent, for the year ended December 31, 2024, compared to the same periods in 2023. The consumer finance segment experienced net charge-offs at a rate of 2.62 percent of average total loans for the year ended December 31, 2024, compared to 1.99 percent for the year ended December 31, 2023, due primarily to an increase in the number of delinquent loans, the number of repossessions, and the average amount charged-off when a loan was uncollectable. Higher amounts charged-off per loan resulted in part from larger loan amounts, generally purchased in 2020 and 2021 when automobile values were higher, being charged-off in the current year, with the wholesale values of automobiles having declined since then. At December 31, 2024, total delinquent loans as a percentage of total loans was 3.90 percent, compared to 4.09 percent at December 31, 2023, and 3.49 percent at September 30, 2024.

The consumer finance segment, at times, offers payment deferrals as a portfolio management technique to achieve higher ultimate cash collections on select loan accounts. A significant reliance on deferrals as a means of managing collections may result in a lengthening of the loss confirmation period, which would increase expectations of credit losses inherent in the portfolio. Average amounts of payment deferrals of automobile loans on a monthly basis, which are not included in delinquent loans, were 2.11 percent and 1.80 percent of average automobile loans outstanding during the fourth quarter and year ended December 31, 2024, respectively, compared to 2.02 percent and 1.87 percent during the same periods during 2023. The allowance for credit losses was $22.7 million at December 31, 2024 and $23.6 million at December 31, 2023. The allowance for credit losses as a percentage of total loans decreased to 4.86 percent at December 31, 2024 from 5.03 percent at December 31, 2023, primarily as a result of growth in loans with stronger credit quality while balances of loans with lower credit quality declined. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected. If loan performance deteriorates resulting in further elevated delinquencies or net charge-offs, the provision for credit losses may increase in future periods.

Liquidity. The objective of the Corporation’s liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $250,000. As of December 31, 2024, the Corporation’s uninsured deposits were approximately $640.2 million, or 29.5 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $455.2 million, or 21.0 percent of total deposits as of December 31, 2024. The Corporation’s liquid assets, which include cash and due from banks, interest-bearing deposits at other banks and nonpledged securities available for sale, were $288.1 million and borrowing availability was $606.2 million as of December 31, 2024, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $439.1 million as of December 31, 2024.

In addition to deposits, the Corporation utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home loan Bank of Atlanta (FHLB) may be used to fund the Corporation’s day-to-day operations. Short-term borrowings also include securities sold under agreements to repurchase. Total borrowings increased to $122.6 million at December 31, 2024 from $109.5 million at December 31, 2023 due primarily to higher long-term borrowings from the FHLB used in part to fund loan growth.

Additional sources of liquidity available to the Corporation include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.

Capital and Dividends. The Corporation declared cash dividends during the year ended December 31, 2024 totaling $1.76 per share, including a quarterly cash dividend of 44 cents per share during the fourth quarter of 2024, which was paid on January 1, 2025. These dividends represent a payout ratio of 23.5 percent of earnings per share for the fourth quarter of 2024 and 29.3 percent of earnings per share for the year ended December 31, 2024. The Board of Directors of the Corporation continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.

Total consolidated equity increased $9.5 million at December 31, 2024, compared to December 31, 2023, due primarily to net income and lower unrealized losses in the market value of securities available for sale, which are recognized as a component of other comprehensive income, partially offset by share repurchases and dividends paid on the Corporation’s common stock. The Corporation’s securities available for sale are fixed income debt securities and their unrealized loss position is a result of rising market interest rates since they were purchased. The Corporation expects to recover its investments in debt securities through scheduled payments of principal and interest. Unrealized losses are not expected to affect the earnings or regulatory capital of the Corporation or C&F Bank. The accumulated other comprehensive loss related to the Corporation’s securities available for sale, net of deferred income taxes, decreased to $23.7 million at December 31, 2024 compared to $25.0 million at December 31, 2023 due primarily to fluctuations in debt security market interest rates and a decrease in the balance of securities available for sale.

As of December 31, 2024, the most recent notification from the FDIC categorized the C&F Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at December 31, 2024, C&F Bank was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, C&F Bank must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Corporation and C&F Bank exceeded these ratios at December 31, 2024. For additional information, see “Capital Ratios” below. The above mentioned ratios are not impacted by unrealized losses on securities available for sale. In the event that all of these unrealized losses became realized into earnings, the Corporation and C&F Bank would both continue to exceed minimum capital requirements, including the capital conservation buffer, and be considered well capitalized.

In December 2023, the Board of Directors authorized a program, effective January 1, 2024 through December 31, 2024, to repurchase up to $10.0 million of the Corporation’s common stock (the 2024 Repurchase Program). During the fourth quarter and year ended December 31, 2024, the Corporation repurchased 11,100 shares, or $679,000, and 160,694 shares, or $7.9 million, of its common stock under the 2024 Repurchase Program, respectively. In December 2024, the Board of Directors authorized a new program, effective January 1, 2025 through December 31, 2025, to repurchase up to $5.0 million of the Corporation’s common stock through December 31, 2025 (the 2025 Repurchase Program).

About C&F Financial Corporation. The Corporation’s common stock is listed for trading on The Nasdaq Stock Market under the symbol CFFI. The common stock closed at a price of $75.40 per share on January 27, 2025. At December 31, 2024, the book value per share of the Corporation was $70.00 and the tangible book value per share was $61.86. For more information about the Corporation’s tangible book value per share, which is not calculated in accordance with GAAP, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures,” below.

C&F Bank operates 31 banking offices and four commercial loan offices located throughout eastern and central Virginia and offers full wealth management services through its subsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services through offices located in Virginia and the surrounding states. C&F Finance Company provides automobile, marine and recreational vehicle loans through indirect lending programs offered primarily in the Northeastern, Midwestern and Southern United States from its headquarters in Henrico, Virginia.

Additional information regarding the Corporation’s products and services, as well as access to its filings with the Securities and Exchange Commission (SEC), are available on the Corporation’s website at http://www.cffc.com.

Use of Certain Non-GAAP Financial Measures. The accounting and reporting policies of the Corporation conform to GAAP in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of the Corporation’s performance. These include adjusted net income, adjusted earnings per share, adjusted return on average equity, adjusted return on average assets, return on average tangible common equity (ROTCE), adjusted ROTCE, tangible book value per share, price to tangible book value ratio, and the following fully-taxable equivalent (FTE) measures: interest income on loans-FTE, interest income on securities-FTE, total interest income-FTE and net interest income-FTE.

Management believes that the use of these non-GAAP measures provides meaningful information about operating performance by enhancing comparability with other financial periods, other financial institutions, and between different sources of interest income. The non-GAAP measures used by management enhance comparability by excluding the effects of balances of intangible assets, including goodwill, that vary significantly between institutions, and tax benefits that are not consistent across different opportunities for investment. These non-GAAP financial measures should not be considered an alternative to GAAP-basis financial statements, and other bank holding companies may define or calculate these or similar measures differently. A reconciliation of the non-GAAP financial measures used by the Corporation to evaluate and measure the Corporation’s performance to the most directly comparable GAAP financial measures is presented below.

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. These forward-looking statements are based on the beliefs of the Corporation’s management, as well as assumptions made by, and information currently available to, the Corporation’s management, and reflect management’s current views with respect to certain events that could have an impact on the Corporation’s future financial performance. These statements, including without limitation statements made in Mr. Cherry’s quote and statements regarding future interest rates and conditions in the Corporation’s industries and markets, relate to expectations concerning matters that are not historical fact, may express “belief,” “intention,” “expectation,” “potential” and similar expressions, and may use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “might,” “will,” “intend,” “target,” “should,” “could,” or similar expressions. These statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those anticipated or implied by such statements. Forward-looking statements in this release may include, without limitation, statements regarding expected future operations and financial performance, expected trends in yields on loans, expected future recovery of investments in debt securities, future dividend payments, deposit trends, charge-offs and delinquencies, changes in cost of funds and net interest margin and items affecting net interest margin, strategic business initiatives and the anticipated effects thereof, changes in interest rates and the effects thereof on net interest income, mortgage loan originations, expectations regarding C&F Bank’s regulatory risk-based capital requirement levels, technology initiatives, our diversified business strategy, asset quality, credit quality, adequacy of allowances for credit losses and the level of future charge-offs, market interest rates and housing inventory and resulting effects in mortgage loan origination volume, sources of liquidity, adequacy of the reserve for indemnification losses related to loans sold in the secondary market, the effect of future market and industry trends, the effects of future interest rate fluctuations, cybersecurity risks, and inflation. Factors that could have a material adverse effect on the operations and future prospects of the Corporation include, but are not limited to, changes in:

interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds, increases in interest rates following actions by the Federal Reserve and increases or volatility in mortgage interest rates
general business conditions, as well as conditions within the financial markets
general economic conditions, including unemployment levels, inflation rates, supply chain disruptions and slowdowns in economic growth
general market conditions, including disruptions due to pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and in the Middle East) or other major events, or the prospect of these events
average loan yields and average costs of interest-bearing deposits
financial services industry conditions, including bank failures or concerns involving liquidity
labor market conditions, including attracting, hiring, training, motivating and retaining qualified employees
the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services, the Consumer Financial Protection Bureau (the CFPB) and the regulatory and enforcement activities of the CFPB
monetary and fiscal policies of the U.S. Government, including policies of the FDIC, U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System, and the effect of these policies on interest rates and business in our markets
demand for financial services in the Corporation’s market area
the value of securities held in the Corporation’s investment portfolios
the quality or composition of the loan portfolios and the value of the collateral securing those loans
the inventory level, demand and fluctuations in the pricing of used automobiles, including sales prices of repossessed vehicles
the level of automobile loan delinquencies or defaults and our ability to repossess automobiles securing delinquent automobile finance installment contracts
the level of net charge-offs on loans and the adequacy of our allowance for credit losses
the level of indemnification losses related to mortgage loans sold
demand for loan products
deposit flows
the strength of the Corporation’s counterparties
the availability of lines of credit from the FHLB and other counterparties
the soundness of other financial institutions and any indirect exposure related to the closing of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Corporation has commercial or deposit relationships
competition from both banks and non-banks, including competition in the non-prime automobile finance markets and marine and recreational vehicle finance markets
services provided by, or the level of the Corporation’s reliance upon third parties for key services
the commercial and residential real estate markets, including changes in property values
the demand for residential mortgages and conditions in the secondary residential mortgage loan markets
the Corporation’s technology initiatives and other strategic initiatives
the Corporation’s branch expansions and consolidations plans
cyber threats, attacks or events
C&F Bank’s product offerings
accounting principles, policies and guidelines, and elections by the Corporation thereunder

These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. For additional information on risk factors that could affect the forward-looking statements contained herein, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023 and other reports filed with the SEC. The Corporation undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.


C&F Financial Corporation Selected Financial Information (dollars in thousands, except for per share data) (unaudited)

Financial Condition	12/31/2024		12/31/2023
Interest-bearing deposits in other banks	$	49,423	$	58,777
Investment securities – available for sale, at fair value		418,625		462,444
Loans held for sale, at fair value		20,112		14,176
Loans, net:
Community Banking segment		1,436,226		1,257,557
Consumer Finance segment		444,085		444,931
Total assets		2,563,385		2,438,498
Deposits		2,170,860		2,066,130
Repurchase agreements		28,994		30,705
Other borrowings		93,615		78,834
Total equity		226,970		217,516


	For The				For The
	Quarter Ended				Year Ended
Results of Operations	12/31/2024		12/31/2023		12/31/2024		12/31/2023
Interest income	$	36,443	$	32,408	$	139,594	$	124,137
Interest expense		11,343		8,466		42,819		26,430
Provision for credit losses:
Community Banking segment		–		75		1,650		1,625
Consumer Finance segment		3,500		2,400		11,600		6,650
Noninterest income:
Gains on sales of loans		1,250		850		6,064		5,780
Other		5,700		6,953		24,474		23,835
Noninterest expenses:
Salaries and employee benefits		11,953		14,035		53,578		54,876
Other		9,363		9,038		36,352		35,007
Income tax expense		1,205		1,109		4,215		5,418
Net income		6,029		5,088		19,918		23,746

Fully-taxable equivalent (FTE) amounts¹
Interest income on loans-FTE		33,122		29,147		127,288		111,146
Interest income on securities-FTE		3,046		3,121		12,079		12,710
Total interest income-FTE		36,731		32,677		140,741		125,101
Net interest income-FTE		25,388		24,211		97,922		98,671

_________________
¹For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”


	For the Quarter Ended
	12/31/2024							12/31/2023
	Average			Income/		Yield/		Average			Income/		Yield/
Yield Analysis	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Securities:
Taxable	$	321,796		$	1,898	2.36	%	$	392,368		$	2,093	2.13	%
Tax-exempt		120,119			1,148	3.82			118,263			1,028	3.48
Total securities		441,915			3,046	2.76			510,631			3,121	2.44
Loans:
Community banking segment		1,438,195			20,036	5.54			1,257,418			16,813	5.30
Mortgage banking segment		30,674			486	6.30			22,288			383	6.82
Consumer finance segment		473,816			12,600	10.58			471,355			11,951	10.06
Total loans		1,942,685			33,122	6.78			1,751,061			29,147	6.60
Interest-bearing deposits in other banks		58,212			563	3.85			42,114			409	3.85
Total earning assets		2,442,812			36,731	5.98			2,303,806			32,677	5.63
Allowance for credit losses		(40,930	)						(40,614	)
Total non-earning assets		159,082							142,252
Total assets	$	2,560,964						$	2,405,444

Liabilities and Equity
Interest-bearing deposits:
Interest-bearing demand deposits	$	331,156			601	0.72		$	341,243			556	0.65
Money market deposit accounts		299,321			1,136	1.51			299,712			896	1.19
Savings accounts		176,106			26	0.06			194,476			33	0.07
Certificates of deposit		811,224			8,325	4.08			635,702			5,665	3.54
Total interest-bearing deposits		1,617,807			10,088	2.48			1,471,133			7,150	1.93
Borrowings:
Repurchase agreements		30,673			131	1.71			33,418			126	1.51
Other borrowings		93,765			1,124	4.79			98,875			1,190	4.81
Total borrowings		124,438			1,255	4.03			132,293			1,316	3.98
Total interest-bearing liabilities		1,742,245			11,343	2.59			1,603,426			8,466	2.10
Noninterest-bearing demand deposits		547,890							554,321
Other liabilities		43,379							45,462
Total liabilities		2,333,514							2,203,209
Equity		227,450							202,235
Total liabilities and equity	$	2,560,964						$	2,405,444
Net interest income				$	25,388						$	24,211
Interest rate spread						3.39	%						3.53	%
Interest expense to average earning assets						1.85	%						1.46	%
Net interest margin						4.13	%						4.17	%


	For the Year Ended
	12/31/2024							12/31/2023
	Average			Income/		Yield/		Average			Income/		Yield/
Yield Analysis	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Securities:
Taxable	$	335,647		$	7,563	2.25	%	$	428,895		$	9,110	2.12	%
Tax-exempt		119,978			4,516	3.76			108,006			3,600	3.33
Total securities		455,625			12,079	2.65			536,901			12,710	2.37
Loans:
Community banking segment		1,378,131			75,707	5.49			1,214,143			62,188	5.12
Mortgage banking segment		30,737			1,897	6.17			25,598			1,695	6.62
Consumer finance segment		476,775			49,684	10.42			473,885			47,263	9.97
Total loans		1,885,643			127,288	6.75			1,713,626			111,146	6.49
Interest-bearing deposits in other banks		37,238			1,374	3.69			35,351			1,245	3.52
Total earning assets		2,378,506			140,741	5.92			2,285,878			125,101	5.47
Allowance for loan losses		(40,736	)						(41,047	)
Total non-earning assets		156,726							148,666
Total assets	$	2,494,496						$	2,393,497

Liabilities and Equity
Interest-bearing deposits:
Interest-bearing demand deposits	$	327,700			2,170	0.66		$	354,643			2,134	0.60
Money market deposit accounts		296,278			4,313	1.46			317,601			3,017	0.95
Savings accounts		180,429			111	0.06			209,033			124	0.06
Certificates of deposit		767,721			31,465	4.10			541,252			15,112	2.79
Total interest-bearing deposits		1,572,128			38,059	2.42			1,422,529			20,387	1.43
Borrowings:
Repurchase agreements		27,754			456	1.64			32,393			399	1.23
Other borrowings		91,713			4,304	4.69			116,908			5,644	4.83
Total borrowings		119,467			4,760	3.98			149,301			6,043	4.05
Total interest-bearing liabilities		1,691,595			42,819	2.53			1,571,830			26,430	1.68
Noninterest-bearing demand deposits		536,828							575,452
Other liabilities		45,217							42,954
Total liabilities		2,273,640							2,190,236
Equity		220,856							203,261
Total liabilities and equity	$	2,494,496						$	2,393,497
Net interest income				$	97,922						$	98,671
Interest rate spread						3.39	%						3.79	%
Interest expense to average earning assets						1.80	%						1.16	%
Net interest margin						4.12	%						4.31	%


	12/31/2024
Funding Sources	Capacity		Outstanding		Available
Unsecured federal funds agreements	$	75,000	$	—	$	75,000
Borrowings from FHLB		257,734		40,000		217,734
Borrowings from Federal Reserve Bank		313,499		—		313,499
Total	$	646,233	$	40,000	$	606,233


Asset Quality	12/31/2024			12/31/2023
Community Banking
Total loans	$	1,453,605		$	1,273,629
Nonaccrual loans	$	333		$	406

Allowance for credit losses (ACL)	$	17,379		$	16,072
Nonaccrual loans to total loans		0.02	%		0.03	%
ACL to total loans		1.20	%		1.26	%
ACL to nonaccrual loans		5,218.92	%		3,958.62	%
Year-to-date net charge-offs to average loans		0.01	%		0.01	%

Consumer Finance
Total loans	$	466,793		$	468,510
Nonaccrual loans	$	614		$	892
Repossessed assets	$	779		$	646
ACL	$	22,708		$	23,579
Nonaccrual loans to total loans		0.13	%		0.19	%
ACL to total loans		4.86	%		5.03	%
ACL to nonaccrual loans		3,698.37	%		2,643.39	%
Year-to-date net charge-offs to average loans		2.62	%		1.99	%


	For The						For The
	Quarter Ended						Year Ended
Other Performance Data	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Net Income (Loss):
Community Banking	$	6,364		$	5,186		$	20,284		$	22,928
Mortgage Banking		87			(103	)		1,108			465
Consumer Finance		272			618			1,414			2,879
Other¹		(694	)		(613	)		(2,888	)		(2,526	)
Total	$	6,029		$	5,088		$	19,918		$	23,746

Net income attributable to C&F Financial Corporation	$	6,037		$	5,068		$	19,834		$	23,604

Earnings per share – basic and diluted	$	1.87		$	1.50		$	6.01		$	6.92
Weighted average shares outstanding – basic and diluted		3,226,999			3,367,931			3,299,574			3,411,995

Annualized return on average assets		0.94	%		0.85	%		0.80	%		0.99	%
Annualized return on average equity		10.60	%		10.06	%		9.02	%		11.68	%
Annualized return on average tangible common equity²		12.17	%		11.74	%		10.37	%		13.58	%
Dividends declared per share	$	0.44		$	0.44		$	1.76		$	1.76

Mortgage loan originations – Mortgage Banking	$	130,426		$	98,238		$	527,750		$	498,797
Mortgage loans sold – Mortgage Banking		154,552			109,387			522,001			498,852

_________________
¹ Includes results of the holding company that are not allocated to the business segments and elimination of inter-segment activity.
² For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”


Market Ratios	12/31/2024		12/31/2023
Market value per share	$	71.25	$	68.19
Book value per share	$	70.00	$	64.28
Price to book value ratio		1.02		1.06
Tangible book value per share¹	$	61.86	$	56.40
Price to tangible book value ratio¹		1.15		1.21
Price to earnings ratio (ttm)		11.86		9.87

_________________
¹ For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”



			Minimum Capital
Capital Ratios	12/31/2024	12/31/2023	Requirements³
C&F Financial Corporation¹
Total risk-based capital ratio	14.1%	14.8%	8.0%
Tier 1 risk-based capital ratio	11.9%	12.6%	6.0%
Common equity tier 1 capital ratio	10.7%	11.3%	4.5%
Tier 1 leverage ratio	9.8%	10.1%	4.0%

C&F Bank²
Total risk-based capital ratio	13.6%	14.1%	8.0%
Tier 1 risk-based capital ratio	12.3%	12.9%	6.0%
Common equity tier 1 capital ratio	12.3%	12.9%	4.5%
Tier 1 leverage ratio	10.1%	10.3%	4.0%

_________________
¹ The Corporation, a small bank holding company under applicable regulations and guidance, is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented above, along with the Corporation’s capital ratios as determined under those regulations.
² All ratios at December 31, 2024 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2023 are presented as filed.
³ The ratios presented for minimum capital requirements are those to be considered adequately capitalized.


	For The Quarter Ended						For The Year Ended
	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Reconciliation of Certain Non-GAAP Financial Measures
Return on Average Tangible Common Equity
Average total equity, as reported	$	227,450		$	202,235		$	220,856		$	203,261
Average goodwill		(25,191	)		(25,191	)		(25,191	)		(25,191	)
Average other intangible assets		(1,183	)		(1,439	)		(1,273	)		(1,538	)
Average noncontrolling interest		(518	)		(515	)		(649	)		(675	)
Average tangible common equity	$	200,558		$	175,090		$	193,743		$	175,857

Net income	$	6,029		$	5,088		$	19,918		$	23,746
Amortization of intangibles		64			69			260			273
Net loss (income) attributable to noncontrolling interest		8			(20	)		(84	)		(142	)
Net tangible income attributable to C&F Financial Corporation	$	6,101		$	5,137		$	20,094		$	23,877

Annualized return on average equity, as reported		10.60	%		10.06	%		12.02	%		15.58	%
Annualized return on average tangible common equity		12.17	%		11.74	%		10.37	%		13.58	%


	For The Quarter Ended				For The Year Ended
	12/31/2024		12/31/2023		12/31/2024		12/31/2023
Fully Taxable Equivalent Net Interest Income¹
Interest income on loans	$	33,075	$	29,093	$	127,089	$	110,938
FTE adjustment		47		54		199		208
FTE interest income on loans	$	33,122	$	29,147	$	127,288	$	111,146

Interest income on securities	$	2,805	$	2,906	$	11,131	$	11,954
FTE adjustment		241		215		948		756
FTE interest income on securities	$	3,046	$	3,121	$	12,079	$	12,710

Total interest income	$	36,443	$	32,408	$	139,594	$	124,137
FTE adjustment		288		269		1,147		964
FTE interest income	$	36,731	$	32,677	$	140,741	$	125,101

Net interest income	$	25,100	$	23,942	$	96,775	$	97,707
FTE adjustment		288		269		1,147		964
FTE net interest income	$	25,388	$	24,211	$	97,922	$	98,671

_________________
¹ Assuming a tax rate of 21%.


	December 31,			December 31,
*(Dollars in thousands except for per share data)*	2024			2023
Tangible Book Value Per Share
Equity attributable to C&F Financial Corporation	$	226,360		$	216,878
Goodwill		(25,191	)		(25,191	)
Other intangible assets		(1,147	)		(1,407	)
Tangible equity attributable to C&F Financial Corporation	$	200,022		$	190,280

Shares outstanding		3,233,672			3,374,098

Book value per share	$	70.00		$	64.28
Tangible book value per share	$	61.86		$	56.40

Contact:	Jason Long, CFO and Secretary
	(804) 843-2360

The MIL Network –

January 29, 2025

MIL-OSI Security: BATON ROUGE WOMAN SENTENCED TO 13 MONTHS IN FEDERAL PRISON FOR COVID-19 FRAUD

Source: Office of United States Attorneys

United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Gernesia Williams, 47, of Baton Rouge, to 13 months in federal prison following her conviction for knowing conversion of government funds. The Court further sentenced Williams to serve three years of supervised release following her term of imprisonment and ordered her to pay $110,030.47 in restitution.

According to admissions made as part of her guilty plea, between approximately April 2020 and January 2023, Williams knowingly converted more than $100,000 in loan proceeds she obtained as part of the U.S. Small Business Administration’s COVID-19 Economic Injury Disaster Loan (“EIDL”) program for her own use. As a condition to obtaining the loans, she promised to use the proceeds solely as working capital to alleviate economic injury caused by the COVID-19 pandemic. Nevertheless, Williams misspent at least $110,030.47 of the loan proceeds on herself and others, including more than $30,000 on jewelry and more than $20,000 on a destination wedding in Florida.

Anyone with information about allegations of pandemic fraud can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

This matter was investigated by the Federal Bureau of Investigation and the U.S. Treasury Inspector General for Tax Administration, and was prosecuted by Assistant United States Attorney Ben Wallace.

MIL Security OSI –

January 29, 2025

MIL-OSI: Eagle Bancorp Montana Earns $3.4 Million, or $0.44 per Diluted Share, in the Fourth Quarter of 2024 and $9.8 Million, or $1.24 per Diluted Share for the Year 2024; Declares Quarterly Cash Dividend of $0.1425 Per Share

Source: GlobeNewswire (MIL-OSI)

HELENA, Mont., Jan. 28, 2025 (GLOBE NEWSWIRE) — Eagle Bancorp Montana, Inc. (NASDAQ: EBMT), (the “Company,” “Eagle”), the holding company of Opportunity Bank of Montana (the “Bank”), today reported net income of $3.4 million, or $0.44 per diluted share, in the fourth quarter of 2024, compared to $2.7 million, or $0.34 per diluted share, in the preceding quarter, and $2.2 million, or $0.28 per diluted share, in the fourth quarter of 2023. For the year ended December 31, 2024, net income was $9.8 million, or $1.24 per diluted share, compared to $10.1 million, or $1.29 per diluted share, in 2023.

Eagle’s board of directors declared a quarterly cash dividend of $0.1425 per share on January 23, 2025. The dividend will be payable March 7, 2025, to shareholders of record February 14, 2025. The current dividend represents an annualized yield of 3.93% based on recent market prices.

“Eagle’s fourth quarter operating results were highlighted by strong quarterly deposit growth, sound revenue generation, and net interest margin expansion,” said Laura F. Clark, President and CEO. “We continue to maintain a stable core deposit base, with non-CDs representing 72.4% of total deposits at year end. Additionally, we continue to maintain quality credit. While loan growth has moderated in recent quarters, we are anticipating steady single-digit loan growth in the year ahead.”

Fourth Quarter 2024 Highlights (at or for the three-month period ended December 31, 2024, except where noted):

Net income increased 26.7% to $3.4 million, or $0.44 per diluted share, in the fourth quarter of 2024, compared to $2.7 million, or $0.34 per diluted share, in the preceding quarter, and increased 58.6% compared to $2.2 million, or $0.28 per diluted share, in the fourth quarter a year ago.
Net interest margin (“NIM”) was 3.59% in the fourth quarter of 2024, a 25 basis point increase compared to 3.34% in the preceding quarter and a 27 basis point increase compared to the fourth quarter a year ago.
Revenues (net interest income before the provision for credit losses, plus noninterest income) increased 2.8% to $21.4 million in the fourth quarter of 2024, compared to $20.8 million in the preceding quarter and increased 1.7% compared to $21.0 million in the fourth quarter a year ago.
Total loans increased 2.4% to $1.52 billion, at December 31, 2024, compared to $1.48 billion a year earlier, and decreased 0.9% compared to $1.53 billion at September 30, 2024.
Total deposits increased $46.0 million or 2.8% to $1.68 billion at December 31, 2024, compared to a year earlier, and increased $30.7 million or 1.9%, compared to September 30, 2024.
The allowance for credit losses represented 1.11% of portfolio loans and 437.7% of nonperforming loans at December 31, 2024, compared to 1.11% of portfolio loans and 195.2% of nonperforming loans at December 31, 2023.

The Company’s available borrowing capacity was approximately $404.0 million at December 31, 2024, compared to $398.5 million at December 31, 2023.

	December 31, 2024				December 31, 2023
(Dollars in thousands)	Borrowings Outstanding		Remaining Borrowing Capacity			Borrowings Outstanding		Remaining Borrowing Capacity
Federal Home Loan Bank advances	$	140,930	$	276,664		$	175,737	$	266,017
Federal Reserve Bank discount window		–		27,349			–		32,472
Correspondent bank lines of credit		–		100,000			–		100,000
Total	$	140,930	$	404,013		$	175,737	$	398,489

The Company paid a quarterly cash dividend in the fourth quarter of $0.1425 per share on December 6, 2024, to shareholders of record November 15, 2024.

Balance Sheet Results
Eagle’s total assets increased 1.3% to $2.10 billion at December 31, 2024, compared to $2.08 billion a year ago, and decreased 2.0% compared to $2.15 billion three months earlier. The investment securities portfolio totaled $292.6 million at December 31, 2024, compared to $318.3 million a year ago, and $307.0 million at September 30, 2024.

Eagle originated $68.1 million in new residential mortgages during the quarter and sold $64.0 million in residential mortgages, with an average gross margin on sale of mortgage loans of approximately 3.18%. This production compares to residential mortgage originations of $58.0 million in the preceding quarter with sales of $51.0 million and an average gross margin on sale of mortgage loans of approximately 3.31%. Mortgage volumes remain low as rates have continued to be elevated relative to rates on existing mortgages.

Total loans increased $36.2 million, or 2.4%, compared to a year ago, and decreased $14.0 million, or 0.9%, from three months earlier. Commercial real estate loans increased 6.1% to $646.0 million at December 31, 2024, compared to $608.7 million a year earlier. Commercial real estate loans were comprised of 71.4% non-owner occupied and 28.6% owner occupied at December 31, 2024. Agricultural and farmland loans increased 4.9% to $281.0 million at December 31, 2024, compared to $267.9 million a year earlier. Residential mortgage loans decreased 1.8% to $153.7 million, compared to $156.6 million a year earlier. Commercial loans increased 8.5% to $144.0 million, compared to $132.7 million a year ago. Commercial construction and development loans decreased 21.5% to $124.2 million, compared to $158.1 million a year ago. Home equity loans increased 12.2% to $97.5 million, residential construction loans increased 5.2% to $45.7 million, and consumer loans decreased 5.4% to $28.5 million, compared to a year ago.

“Similar to other community banks, our deposit mix has shifted towards higher yielding deposits over the last several quarters due to the higher interest rate environment. However, the recent Fed rate cuts have started to ease deposit pricing, and we anticipate this will continue as we move through this next rate cycle,” said Miranda Spaulding, CFO.

Total deposits increased to $1.68 billion at December 31, 2024, compared to $1.64 billion at December 31, 2023, and $1.65 billion at September 30, 2024. Noninterest-bearing checking accounts represented 24.9%, interest-bearing checking accounts represented 13.2%, savings accounts represented 12.5%, money market accounts comprised 21.8% and time certificates of deposit made up 27.6% of the total deposit portfolio at December 31, 2024. There were no brokered certificates at December 31, 2024, compared to $72.2 million at December 31, 2023, and $22.1 million at September 30, 2024. The average cost of total deposits was 1.71% in the fourth quarter of 2024, compared to 1.76% in the preceding quarter and 1.49% in the fourth quarter of 2023. The estimated amount of uninsured deposits was approximately $323.0 million, or 19% of total deposits, at December 31, 2024, compared to $307.0 million, or 18% of total deposits, at September 30, 2024.

Shareholders’ equity was $174.8 million at December 31, 2024, compared to $169.3 million a year earlier and $177.7 million three months earlier. Book value per share was $21.77 at December 31, 2024, compared to $21.11 a year earlier and $22.17 three months earlier. Tangible book value per share, a non-GAAP financial measure calculated by dividing shareholders’ equity, less goodwill and core deposit intangible, by common shares outstanding, was $16.88 at December 31, 2024, compared to $16.05 a year earlier and $17.23 three months earlier.

Operating Results
“The higher yields on interest earning assets combined with a lower cost of funds contributed to our 25 basis point NIM expansion during the quarter, compared to the preceding quarter,” said Spaulding. “We anticipate additional improvement in our cost of funds over the next several quarters.”

Eagle’s NIM was 3.59% in the fourth quarter of 2024, a 25 basis point increase compared to 3.34% in the preceding quarter and a 27 basis point improvement compared to the fourth quarter a year ago. The interest accretion on acquired loans totaled $161,000 and resulted in a four basis-point increase in the NIM during the fourth quarter of 2024, compared to $167,000 and a three basis-point increase in the NIM during the preceding quarter. Funding costs for the fourth quarter of 2024 were 2.69%, compared to 2.89% in the third quarter of 2024 and 2.58% in the fourth quarter of 2023. Average yields on interest earning assets for the fourth quarter of 2024 increased to 5.70%, compared to 5.66% in the third quarter of 2024 and 5.36% in the fourth quarter a year ago. For the year, the NIM was 3.42% compared to 3.51% for 2023.

Net interest income, before the provision for credit losses, increased 6.3% to $16.8 million in the fourth quarter of 2024, compared to $15.8 million in the third quarter of 2024, and increased 10.5% compared to $15.2 million in the fourth quarter of 2023. For the year, net interest income increased 1.5% to $63.4 million, compared to $62.5 million in 2023.

Fourth quarter revenues increased 2.8% to $21.4 million, compared to $20.8 million in the preceding quarter and increased 1.7% compared to $21.0 million in the fourth quarter a year ago. For the year 2024, revenues were $81.2 million, compared to $85.2 million in 2023. The decrease compared to a year ago was largely due to lower volumes in mortgage banking activity.

Total noninterest income decreased 8.2% to $4.6 million in the fourth quarter of 2024, compared to $5.0 million in the preceding quarter, and decreased 21.3% compared to $5.8 million in the fourth quarter a year ago. The decrease compared to the preceding quarter was largely due to income from bank owned life insurance of $724,000 recorded during the third quarter of 2024. Net mortgage banking income, the largest component of noninterest income, totaled $2.8 million in the fourth quarter of 2024, compared to $2.6 million in the preceding quarter and $3.7 million in the fourth quarter a year ago. This decrease compared to the fourth quarter a year ago was largely driven by a decline in net gain on sale of mortgage loans, which was impacted by lower mortgage loan volumes. For the year, noninterest income decreased 21.8% to $17.8 million, compared to $22.7 million in 2023. Net mortgage banking income decreased 33.1% to $10.0 million in 2024, compared to $15.0 million in 2023. These decreases were driven by a decline in net gain on sale of mortgage loans.

Eagle’s fourth quarter noninterest expense was $17.7 million, an increase of 2.5% compared to $17.3 million in the preceding quarter and a 6.3% decrease compared to $18.9 million in the fourth quarter a year ago. Lower salaries and employee benefits contributed to the decrease compared to the year ago quarter. For the year, noninterest expense decreased 3.9% to $69.3 million, compared to $72.1 million in 2023.

For the fourth quarter of 2024, the Company recorded income tax expense of $269,000. This compared to income tax expense of $529,000 in the preceding quarter and an income tax benefit of $315,000 in the fourth quarter of 2023. The effective tax rate for the year was 14.2% compared to 13.7% for the prior year and is due to the increase in proportion of tax-exempt income compared to pretax earnings, as well as tax credits from investments in low-income housing tax credit projects.

Credit Quality
Due to muted loan growth and positive economic factors within the CECL modeling, Eagle recorded a recapture in its provision for credit losses of $36,000 during the fourth quarter of 2024. This compared to a $277,000 provision for credit losses in the preceding quarter and $270,000 in the fourth quarter a year ago. The allowance for credit losses represented 437.7% of nonperforming loans at December 31, 2024, compared to 356.7% three months earlier and 195.2% a year earlier. Nonperforming loans were $3.9 million at December 31, 2024, $4.8 million at September 30, 2024, and $8.4 million a year earlier. Net loan charge-offs totaled $44,000 in the fourth quarter of 2024, compared to net loan charge-offs of $17,000 in the preceding quarter and net loan charge-offs of $10,000 in the fourth quarter a year ago. The allowance for credit losses was $16.9 million, or 1.11% of total loans, at December 31, 2024, compared to $17.1 million, or 1.12% of total loans, at September 30, 2024, and $16.4 million, or 1.11% of total loans, a year ago.

Capital Management
The ratio of tangible common shareholders’ equity (shareholders’ equity, less goodwill and core deposit intangible) to tangible assets (total assets, less goodwill and core deposit intangible) was 6.57% at December 31, 2024, up from 6.32% a year ago and 6.56% three months earlier. This ratio is a non-GAAP financial measure. For the most comparable GAAP financial measure, see “Reconciliation of Non-GAAP Financial Measures” below. As of December 31, 2024, the Bank’s regulatory capital was in excess of all applicable regulatory requirements and is deemed well capitalized. The Bank’s Tier 1 capital to adjusted total average assets was 10.07% as of December 31, 2024.

About the Company
Eagle Bancorp Montana, Inc. is a bank holding company headquartered in Helena, Montana, and is the holding company of Opportunity Bank of Montana, a community bank established in 1922 that serves consumers and small businesses in Montana through 29 banking offices. Additional information is available on the Bank’s website at www.opportunitybank.com. The shares of Eagle Bancorp Montana, Inc. are traded on the NASDAQ Global Market under the symbol “EBMT.”

Forward Looking Statements
This release may contain certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and may be identified by the use of such words as “believe,” “will” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” These forward-looking statements include, but are not limited to statements of our goals, intentions, expectations and anticipations; statements regarding our business plans, prospects, mergers, growth and operating strategies; statements regarding the asset quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. These factors include, but are not limited to, changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements; general economic conditions and political events, either nationally or in our market areas, that are worse than expected; the emergence or continuation of widespread health emergencies or pandemics, including but not limited to vaccine efficacy and immunization rates, new variants, steps taken by governmental and other authorities to contain, mitigate and combat the pandemic, adverse effects on our employees, customers and third-party service providers, the increase in cyberattacks in the current work-from-home environment; the impact of volatility in the U.S. banking industry, including the associated impact of any regulatory changes or other mitigation efforts taken by governmental agencies in response thereto; the impact of any new regulatory, policy or enforcement developments resulting from the change in U.S. presidential administration; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions, customer behavior, adverse developments with respect to U.S. economic conditions and other uncertainties, including the impact of supply chain disruptions, inflationary pressures and labor shortages on economic conditions and our business; an inability to access capital markets or maintain deposits or borrowing costs; competition among banks, financial holding companies and other traditional and non-traditional financial service providers; loan demand or residential and commercial real estate values in Montana; the concentration of our business in Montana; our ability to continue to increase and manage our commercial real estate, commercial business and agricultural loans; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the initiation and resolution of legal proceedings (including any securities, bank operations, consumer or employee litigation); inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments; adverse changes in the securities markets that lead to impairment in the value of our investment securities and goodwill; other economic, governmental, competitive, regulatory and technological factors that may affect our operations; our ability to implement new technologies and maintain secure and reliable technology systems including those that involve the Bank’s third-party vendors and service providers; cyber incidents, or theft or loss of Company or customer data or money; our ability to appropriately address social, environmental, and sustainability concerns that may arise from our business activities; the effect of our recent or future acquisitions, including the failure to achieve expected revenue growth and/or expense savings, the failure to effectively integrate their operations, the outcome of any legal proceedings and the diversion of management time on issues related to the integration.

Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. All information set forth in this press release is current as of the date of this release and the company undertakes no duty or obligation to update this information.

Use of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States, or GAAP, in this release, including the Financial Ratios and Other Data contains non-GAAP financial measures. Non-GAAP financial measures include: 1) core efficiency ratio, 2) tangible book value per share and 3) tangible common equity to tangible assets. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance, performance trends and financial condition, and to enhance investors’ overall understanding of such financial performance. In particular, the use of tangible book value per share and tangible common equity to tangible assets is prevalent among banking regulators, investors and analysts.

The numerator for the core efficiency ratio is calculated by subtracting acquisition costs and intangible asset amortization from noninterest expense. Tangible assets and tangible common shareholders’ equity are calculated by excluding intangible assets from assets and shareholders’ equity, respectively. For these financial measures, our intangible assets consist of goodwill and core deposit intangible. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding. We believe that this measure is consistent with the capital treatment by our bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios and present this measure to facilitate the comparison of the quality and composition of our capital over time and in comparison, to our competitors.

Non-GAAP financial measures have inherent limitations, are not required to be 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. Further, the non-GAAP financial measure of tangible book value per share should not be considered in isolation or as a substitute for book value per share or total shareholders’ equity determined in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Eagle strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Reconciliation of the GAAP and non-GAAP financial measures are presented below.

Balance Sheet
(Dollars in thousands, except per share data)				(Unaudited)
	December 31,			September 30,			December 31,
	2024			2024			2023

Assets:
Cash and due from banks	$	29,824		$	22,954		$	23,243
Interest bearing deposits in banks		1,735			19,035			1,302
Federal funds sold		–			200			–
Total cash and cash equivalents		31,559			42,189			24,545
Securities available-for-sale, at fair value		292,590			306,982			318,279
Federal Home Loan Bank (“FHLB”) stock		7,778			11,218			9,191
Federal Reserve Bank (“FRB”) stock		4,131			4,131			4,131
Mortgage loans held-for-sale, at fair value		13,368			13,429			11,432
Loans:
Real estate loans:
Residential 1-4 family		153,721			156,811			156,578
Residential 1-4 family construction		45,701			52,217			43,434
Commercial real estate		645,962			644,019			608,691
Commercial construction and development		124,211			125,323			158,132
Farmland		146,610			145,356			142,590
Other loans:
Home equity		97,543			93,646			86,932
Consumer		28,513			29,445			30,125
Commercial		144,039			143,190			132,709
Agricultural		134,346			144,645			125,298
Total loans		1,520,646			1,534,652			1,484,489
Allowance for credit losses		(16,850	)		(17,130	)		(16,440	)
Net loans		1,503,796			1,517,522			1,468,049
Accrued interest and dividends receivable		12,890			14,844			12,485
Mortgage servicing rights, net		15,376			15,443			15,853
Assets held-for-sale, at cost		960			257			–
Premises and equipment, net		101,540			100,297			94,282
Cash surrender value of life insurance, net		53,232			52,852			47,939
Goodwill		34,740			34,740			34,740
Core deposit intangible, net		4,499			4,834			5,880
Other assets		26,631			26,375			28,860
Total assets	$	2,103,090		$	2,145,113		$	2,075,666

Liabilities:
Deposit accounts:
Noninterest bearing	$	419,211		$	419,760		$	418,727
Interest bearing		1,262,017			1,230,752			1,216,468
Total deposits		1,681,228			1,650,512			1,635,195
Accrued expenses and other liabilities		47,018			38,593			36,462
FHLB advances and other borrowings		140,930			219,167			175,737
Other long-term debt, net		59,149			59,111			58,999
Total liabilities		1,928,325			1,967,383			1,906,393

Shareholders’ Equity:
Preferred stock (par value $0.01 per share; 1,000,000 shares
authorized; no shares issued or outstanding)		–			–			–
Common stock (par value $0.01; 20,000,000 shares authorized;
8,507,429 shares issued; 8,027,177, 8,016,784 and 8,016,784
shares outstanding at December 31, 2024, September 30, 2024, and
December 31, 2023, respectively		85			85			85
Additional paid-in capital		108,334			109,040			108,819
Unallocated common stock held by Employee Stock Ownership Plan		(4,011	)		(4,154	)		(4,583	)
Treasury stock, at cost (480,252, 490,645 and 490,645 shares at
December 31, 2024, September 30, 2024, and December 31, 2023, respectively)		(10,761	)		(11,124	)		(11,124	)
Retained earnings		101,264			98,979			96,021
Accumulated other comprehensive loss, net of tax		(20,146	)		(15,096	)		(19,945	)
Total shareholders’ equity		174,765			177,730			169,273
Total liabilities and shareholders’ equity	$	2,103,090		$	2,145,113		$	2,075,666

Income Statement				(Unaudited)						(Unaudited)
(Dollars in thousands, except per share data)	Three Months Ended									Years Ended
	December 31,			September 30,		December 31,				December 31,
	2024			2024		2023				2024			2023
Interest and dividend income:
Interest and fees on loans	$	23,756		$	23,802		$	21,481		$	92,282		$	79,423
Securities available-for-sale		2,475			2,598			2,790			10,428			11,376
FRB and FHLB dividends		308			266			247			1,085			727
Other interest income		148			94			23			416			89
Total interest and dividend income		26,687			26,760			24,541			104,211			91,615
Interest expense:
Interest expense on deposits		7,216			7,190			6,090			27,838			17,857
FHLB advances and other borrowings		2,005			3,084			2,569			10,211			8,562
Other long-term debt		676			684			684			2,724			2,719
Total interest expense		9,897			10,958			9,343			40,773			29,138
Net interest income		16,790			15,802			15,198			63,438			62,477
(Recapture) provision for credit losses		(36	)		277			270			518			1,456
Net interest income after provision for credit losses		16,826			15,525			14,928			62,920			61,021

Noninterest income:
Service charges on deposit accounts		387			430			444			1,645			1,757
Mortgage banking, net		2,818			2,602			3,718			10,014			14,970
Interchange and ATM fees		675			662			663			2,540			2,524
Appreciation in cash surrender value of life insurance		408			1,038			301			2,054			1,466
Net loss on sale of available-for-sale securities		(141	)		–			–			(141	)		(222	)
Other noninterest income		425			251			686			1,664			2,227
Total noninterest income		4,572			4,983			5,812			17,776			22,722

Noninterest expense:
Salaries and employee benefits		9,830			9,894			11,359			39,715			42,973
Occupancy and equipment expense		2,194			2,134			1,972			8,531			8,072
Data processing		1,715			1,587			1,673			6,209			5,943
Software subscriptions		576			511			519			2,127			2,064
Advertising		466			277			445			1,312			1,375
Amortization		337			337			386			1,391			1,587
Loan costs		372			385			461			1,567			1,887
FDIC insurance premiums		287			295			288			1,165			1,150
Professional and examination fees		596			438			438			1,941			1,922
Other noninterest expense		1,323			1,412			1,350			5,348			5,116
Total noninterest expense		17,696			17,270			18,891			69,306			72,089

Income before provision for income taxes		3,702			3,238			1,849			11,390			11,654
Provision (benefit) for income taxes		269			529			(315	)		1,612			1,598
Net income	$	3,433		$	2,709		$	2,164		$	9,778		$	10,056

Basic earnings per common share	$	0.44		$	0.35		$	0.28		$	1.25		$	1.29
Diluted earnings per common share	$	0.44		$	0.34		$	0.28		$	1.24		$	1.29

Basic weighted average shares outstanding		7,862,279			7,836,921			7,809,274			7,838,822			7,793,352

Diluted weighted average shares outstanding		7,868,507			7,860,138			7,815,022			7,853,792			7,798,244

ADDITIONAL FINANCIAL INFORMATION				(Unaudited)
(Dollars in thousands, except per share data)	Three Months Ended or Years Ended
	December 31,			September 30,		December 31,
	2024			2024		2023

Mortgage Banking Activity (For the quarter):
Net gain on sale of mortgage loans	$	2,036		$	1,691	$	2,845
Net change in fair value of loans held-for-sale and derivatives		(3	)		159		(40	)
Mortgage servicing income, net		785			752		913
Mortgage banking, net	$	2,818		$	2,602	$	3,718

Mortgage Banking Activity (Year-to-date):
Net gain on sale of mortgage loans	$	6,741				$	11,396
Net change in fair value of loans held-for-sale and derivatives		(5	)				194
Mortgage servicing income, net		3,278					3,380
Mortgage banking, net	$	10,014				$	14,970

Performance Ratios (For the quarter):
Return on average assets		0.65%			0.51%		0.42%
Return on average equity		8.12%			6.56%		5.68%
Yield on average interest earning assets		5.70%			5.66%		5.36%
Cost of funds		2.69%			2.89%		2.58%
Net interest margin		3.59%			3.34%		3.32%
Core efficiency ratio*		81.26%			81.47%		88.08%

Performance Ratios (Year-to-date):
Return on average assets		0.47%					0.50%
Return on average equity		5.94%					6.33%
Yield on average interest earning assets		5.62%					5.14%
Cost of funds		2.76%					2.11%
Net interest margin		3.42%					3.51%
Core efficiency ratio*		83.62%					82.75%

* The core efficiency ratio is a non-GAAP ratio that is calculated by dividing non-interest expense, exclusive of acquisition
costs and intangible asset amortization, by the sum of net interest income and non-interest income.



ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands, except per share data)

Asset Quality Ratios and Data:	As of or for the Three Months Ended
	December 31,			September 30,		December 31,
	2024			2024		2023

Nonaccrual loans	$	3,227		$	3,859	$	8,395
Loans 90 days past due and still accruing		623			944		26
Total nonperforming loans		3,850			4,803		8,421
Other real estate owned and other repossessed assets		45			4		5
Total nonperforming assets	$	3,895		$	4,807	$	8,426

Nonperforming loans / portfolio loans		0.25%			0.31%		0.57%
Nonperforming assets / assets		0.19%			0.22%		0.41%
Allowance for credit losses / portfolio loans		1.11%			1.12%		1.11%
Allowance for credit losses/ nonperforming loans		437.66%			356.65%		195.23%
Gross loan charge-offs for the quarter	$	51		$	22	$	11
Gross loan recoveries for the quarter	$	7		$	5	$	1
Net loan charge-offs for the quarter	$	44		$	17	$	10


	December 31,			September 30,		December 31,
	2024			2024		2023
Capital Data (At quarter end):
Common shareholders’ equity (book value) per share	$	21.77		$	22.17	$	21.11
Tangible book value per share**	$	16.88		$	17.23	$	16.05
Shares outstanding		8,027,177			8,016,784		8,016,784
Tangible common equity to tangible assets***		6.57%			6.56%		6.32%

Other Information:
Average investment securities for the quarter	$	300,088		$	305,730	$	306,678
Average investment securities year-to-date	$	306,538		$	308,688	$	328,533
Average loans for the quarter ****	$	1,533,686		$	1,547,246	$	1,494,181
Average loans year-to-date ****	$	1,523,384		$	1,519,951	$	1,436,672
Average earning assets for the quarter	$	1,858,078		$	1,874,669	$	1,817,419
Average earning assets year-to-date	$	1,850,120		$	1,847,468	$	1,780,727
Average total assets for the quarter	$	2,107,357		$	2,116,839	$	2,062,267
Average total assets year-to-date	$	2,092,051		$	2,086,951	$	2,015,586
Average deposits for the quarter	$	1,671,653		$	1,622,254	$	1,626,598
Average deposits year-to-date	$	1,636,390		$	1,624,636	$	1,603,861
Average equity for the quarter	$	169,054		$	165,162	$	152,516
Average equity year-to-date	$	164,591		$	163,106	$	158,807



** The tangible book value per share is a non-GAAP ratio that is calculated by dividing shareholders’ equity,
less goodwill and core deposit intangible, by common shares outstanding.
*** The tangible common equity to tangible assets is a non-GAAP ratio that is calculated by dividing shareholders’
equity, less goodwill and core deposit intangible, by total assets, less goodwill and core deposit intangible.
**** Includes loans held for sale

Reconciliation of Non-GAAP Financial Measures

Core Efficiency Ratio				(Unaudited)						(Unaudited)
(Dollars in thousands)	Three Months Ended									Years Ended
	December 31,			September 30,			December 31,			December 31,
	2024			2024			2023			2024			2023
Calculation of Core Efficiency Ratio:
Noninterest expense	$	17,696		$	17,270		$	18,891		$	69,306		$	72,089
Intangible asset amortization		(337	)		(337	)		(386	)		(1,391	)		(1,587	)
Core efficiency ratio numerator		17,359			16,933			18,505			67,915			70,502

Net interest income		16,790			15,802			15,198			63,438			62,477
Noninterest income		4,572			4,983			5,812			17,776			22,722
Core efficiency ratio denominator		21,362			20,785			21,010			81,214			85,199

Core efficiency ratio (non-GAAP)		81.26%			81.47%			88.08%			83.62%			82.75%

Tangible Book Value and Tangible Assets	(Unaudited)
(Dollars in thousands, except per share data)	December 31,			September 30,			December 31,
	2024			2024			2023
Tangible Book Value:
Shareholders’ equity	$	174,765		$	177,730		$	169,273
Goodwill and core deposit intangible, net		(39,239	)		(39,574	)	$	(40,620	)
Tangible common shareholders’ equity (non-GAAP)	$	135,526		$	138,156		$	128,653

Common shares outstanding at end of period		8,027,177			8,016,784			8,016,784

Common shareholders’ equity (book value) per share (GAAP)	$	21.77		$	22.17		$	21.11

Tangible common shareholders’ equity (tangible book value)
per share (non-GAAP)	$	16.88		$	17.23		$	16.05

Tangible Assets:
Total assets	$	2,103,090		$	2,145,113		$	2,075,666
Goodwill and core deposit intangible, net		(39,239	)		(39,574	)		(40,620	)
Tangible assets (non-GAAP)	$	2,063,851		$	2,105,539		$	2,035,046

Tangible common shareholders’ equity to tangible assets
(non-GAAP)		6.57%			6.56%			6.32%

Contacts:	Laura F. Clark, President and CEO (406) 457-4007 Miranda J. Spaulding, SVP and CFO (406) 441-5010

The MIL Network –

January 29, 2025

MIL-OSI Global: Nutrition advice is rife with misinformation − a medical education specialist explains how to tell valid health information from pseudoscience

Source: The Conversation – USA – By Aimee Pugh Bernard, Assistant Professor of Immunology and Microbiology, University of Colorado Anschutz Medical Campus

If a health claim about a dietary intervention sounds too good to be true, it probably is.
Mizina/iStock via Getty Images Plus

The COVID-19 pandemic illuminated a vast landscape of misinformation about many topics, science and health chief among them.

Since then, information overload continues unabated, and many people are rightfully confused by an onslaught of conflicting health information. Even expert advice is often contradictory.

On top of that, people sometimes deliberately distort research findings to promote a certain agenda. For example, trisodium phosphate is a common food additive in cakes and cookies that is used to improve texture and prevent spoilage, but wellness influencers exploit the fact that a similarly named substance is used in paint and cleaning products to suggest it’s dangerous to your health.

Such claims can proliferate quickly, creating widespread misconceptions and undermining trust in legitimate scientific research and medical advice. Social media’s rise as a news and information source further fuels the spread of pseudoscientific views.

Misinformation is rampant in the realm of health and nutrition. Findings from nutrition research is rarely clear-cut because diet is just one of many behaviors and lifestyle factors affecting health, but the simplicity of using food and supplements as a cure-all is especially seductive.

I am an assistant professor specializing in medical education and science communication. I also train scientists and future health care professionals how to communicate their science to the general public.

In my view, countering the voices of social media influencers and health activists promoting pseudoscientific health claims requires leaning into the science of disease prevention. Extensive research has produced a body of evidence-based practices and public health measures that have consistently been shown to improve the health of millions of people around the world. Evaluating popular health claims against the yardstick of this work can help distinguish which ones are based on sound science.

To parse pseudoscientific claims from sound advice about health and nutrition, it’s crucial to evaluate the information’s source.
tadamichi/Getty Images

Navigating the terrain of tangled information

Conflicting information can be found on just about everything we eat and drink.

That’s because a food or beverage is rarely just good or bad. Instead, its health effects can depend on everything from the quantity a person consumes to their genetic makeup. Hundreds of scientific studies describe coffee’s health benefits and, on the flip side, its health risks. A bird’s-eye view can point in one direction or another, but news articles and social media posts often make claims based on a single study.

Things can get even more confusing with dietary supplements because people who promote them often make big claims about their health benefits. Take apple cider vinegar, for example – or ACV, if you’re in the know.

Apple cider vinegar has been touted as an all-natural remedy for a variety of ailments, including digestive issues, urinary health and weight management. Indeed, some studies have shown that it might help lower cholesterol, in addition to having other health benefits, but overall those studies have small sample sizes and are inconclusive.

Advocates of this substance often claim that one particular component of it – the cloudy sediment at the bottom of the bottle termed “the mother” – is especially beneficial because of the bacteria and yeast it contains. But there is no research that backs the claim that it offers any health benefits.

One good rule of thumb is that health hacks that promise quick fixes are almost always too good to be true. And even when supplements do offer some health benefits under specific circumstances, it’s important to remember that they are largely exempt from Food and Drug Administration regulations. That means the ingredients on their labels might contain more or less of the ingredients promised or other ingredients not listed, which can potentially cause harms such as liver toxicity.

It’s also important to keep in mind that the global dietary supplements industry is worth more than US$150 billion per year, so companies – and wellness influencers – selling supplements have a financial stake in convincing the public of their value.

Misinformation about nutrition is nothing new, but that doesn’t make it any less confusing.

How nutrition science gets twisted

There’s no doubt that good nutrition is fundamental for your health. Studies consistently show that a balanced diet containing a variety of essential nutrients can help prevent chronic diseases and promote overall well-being.

For instance, minerals such as calcium and iron support bone health and oxygen circulation in the blood, respectively. Proteins are essential for muscle repair and growth, and healthy fats, like those found in avocados and nuts, are vital for brain health.

However, pseudoscientific claims often twist such basic facts to promote the idea that specific diets or supplements can prevent or treat illness. For example, vitamin C is known to play a role in supporting the immune system and can help reduce the duration and severity of colds.

But despite assertions to the contrary, consuming large quantities of vitamin C does not prevent colds. In fact, the body needs only a certain amount of vitamin C to function properly, and any excess is simply excreted.

Companies sometimes claim their supplement is “scientifically proven” to cure illness or boost brain function, with no credible research to back it up.

Some companies overstate the benefits while underplaying the hazards.

For example, wellness influencers have promoted raw milk over pasteurized milk as a more natural and nutritious choice, but consuming it is risky. Unpasteurized milk can contain harmful bacteria that leads to gastrointestinal illness and, in some cases, much more serious and potentially life-threatening diseases such as avian influenza, or bird flu.

Such dietary myths aren’t harmless. Reliance on nutrition alone can lead to neglecting other critical aspects of health, such as regular medical checkups and lifesaving vaccinations.

The lure of dietary myths has led people with cancer to replace proven science-backed treatments, such as chemotherapy or radiation, with unproven and misleading nutrition programs.

How to spot less-than-solid science

Pseudoscience exploits your insecurities and emotions, taking advantage of your desire to live the healthiest life possible.

While the world around you may be uncertain and out of your control, you want to believe that at the very least, you have control over your own health. This is where the wellness industry steps in.

What makes pseudoscientific claims so confusing is that they use just enough scientific jargon to sound believable. Supplements or powders that claim to “boost immunity” often list ingredients such as adaptogens and superfoods. While these words sound real and convincing, they actually don’t mean anything in science. They are terms created by the wellness industry to sell products.

I’ve researched and written about reliable ways to distinguish science facts from false health claims. To stay alert and find credible information, I’d suggest you follow a few key steps.

First, check your emotions – strong emotional reactions, such as fear and anger, can be a red flag.

Next, check that the author has experience or expertise in the field of the topic. If they’re not an expert, they might not know what they are talking about. It’s always a good idea to make sure the source is reputable – ask yourself, would this source be trusted by scientists?

Finally, search for references that back up the information. If very little or nothing else exists in the science world to back up the claims, you may want to put your trust in a different source.

Following these steps will separate the facts from fake news and empower you to make evidence-based decisions.

Aimee Pugh Bernard is an unpaid board member for Immunize Colorado

– ref. Nutrition advice is rife with misinformation − a medical education specialist explains how to tell valid health information from pseudoscience – https://theconversation.com/nutrition-advice-is-rife-with-misinformation-a-medical-education-specialist-explains-how-to-tell-valid-health-information-from-pseudoscience-246478

MIL OSI – Global Reports –

January 29, 2025

MIL-OSI Russia: International Winter Academy on Nuclear Energy for Students from China Concluded

Translartion. Region: Russians Fedetion –

Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

The International Winter Academy on Energy has ended at the Institute of Energy. This project is aimed at developing international educational cooperation in energy with universities in different countries. This winter, the Nuclear Energy module was organized for Chinese students from Harbin Engineering University, Sichuan University, Shandong University, and Tsinghua University.

The staff of the Higher School of Nuclear and Thermal Energy of the Institute of Power Engineering have been conducting classes in a hybrid format since the pandemic. The transition to online classes was inevitable then, and now it has become a convenient option for students who, for various reasons, cannot come.

We will continue to accept students both online and in person, as there is demand for this. Our program is short-term, it covers both basic and special aspects of energy, so we provide some participants with the opportunity to study after their main classes and after finishing work, – said Ekaterina Sokolova, associate professor at HSE and founder of the academy.

The Winter Academy received the “status” of an academy when the organizers and founders of the project realized that education is not the only area of cooperation in which students, teachers from foreign universities and polytechnics are interested.

Now the program includes not only lectures and intensive courses, but also case studies and presentations of scientific research. The Academy participants presented projects on various topics: “Artificial Intelligence on the Path to Sustainable Energy”, “Small Modular Reactors”, “Nuclear Energy and Climate Change”, etc.

Students wrote review articles and provided examples of the latest developments in their country, Russia and the world, based on the knowledge they had gained during the program. They presented their research results on the final day at the energy forum.

The guys visited the laboratory of the Scientific and Educational Center “Thermal Physics in Power Engineering”, where Professor Vladimir Mityakov of the Higher School of Engineering and Technology gave a tour in English, showed the work of the wind tunnel and the results of experiments conducted with its help. Associate Professors of the Higher School of Engineering and Technology Khashayar Sadeghi and Hadi Seyed accompanied the students of the Academy, assistant Alexey Tarasenko gave a lecture on the basics of probabilistic safety analysis.

We would like our academy to be able to provide not only knowledge, but also the skills required for conducting scientific activities and writing articles. The guys get acquainted with the Polytechnic, with teachers and students. We hold events that teach them to work in a team, overcome the language barrier and develop the skill of communicating with future colleagues and scientists. The language of science is, first of all, the language of cooperation, both in education and in culture, – shared Ekaterina Andreyevna.

A cultural program was prepared for the Academy participants. The children visited the Hermitage and the Yusupov Palace. Senior lecturer of the Higher School of Architecture and Technical Ethics Natalia Donmez and specialist of the SPbPU History Museum Maria Zavyalova conducted a bilingual excursion dedicated to the history of the Polytechnic University.

The academy’s organizers plan to attract Russian students and students from international educational programs to obtain different opinions and come to new solutions.

In the near future, IE employees will begin preparing for the spring program on hydrogen energy, which is very popular. Scientists Competence Center for Advanced Nuclear Technologies in the Area of Sustainable Development and Decarbonization of Energy create a course taking into account the latest industry developments.

In the summer, the team is preparing for the arrival of several delegations from China and students from other countries for modules on electric power, oil and gas industry, nuclear power, and renewable energy sources.

Students can follow the updates and recruitment to the academy as tutors on the IE website.

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

MIL OSI Russia News –

January 29, 2025

MIL-OSI Global: Donors are down, but dollars are up – how US charitable giving is changing

Source: The Conversation – USA – By Una Osili, Professor of Economics and Philanthropic Studies; Associate Dean for Research and International Programs, Lilly Family School of Philanthropy, Indiana University

Although the pie is shrinking, the remaining slices are giving more.
Say-Cheese/iStock via Getty Images Plus

Although the US$557 billion Americans gave to charity in 2023 marked a 2.1% decline in inflation-adjusted terms, U.S. donations have increased significantly over the past two decades. Giving has grown by about 42% since 2003, according to the annual Giving USA report – which our team at the Indiana University Lilly Family School of Philanthropy researches and writes in partnership with the Giving USA Foundation.

While overall charitable funds have expanded according to the most recent data available, the share of Americans who give to charitable causes has fallen. It plummeted from 66.2% of all U.S. adults in 2000 to 45.8% in 2020, our team determined in a different study we released in 2024. In short, the number of dollars is up, while the share of Americans who are donors is down.

As the second Trump administration gets underway, having fewer people donating more is one reason why scholars of philanthropy like us are watching how the federal government handles tax policy and other measures that could influence charitable giving.

Decline continued when the COVID-19 pandemic began

Our latest study regarding the donors’ side of the American giving equation included data from 2020 – the first year of the COVID-19 pandemic.

We found that a long-term decline in Americans’ participation in charitable giving accelerated during the first year of the pandemic. The share of Americans who gave to charity fell from 49.6% in 2018, the prior year for which data is available, to 45.8% in 2020 – a nearly 4-percentage-point decline in two years. This data is only available for every other year.

Those findings may appear to contradict many anecdotal reports about charitable activity and other acts of generosity being on the rise at that time.

The share of Americans who give to charity had fallen by 3.5 percentage points in the prior two-year period – a sign that the pandemic may have sped up the decline in the giving participation rate.

Giving is growing more concentrated

How can the total amount contributed rise while the share of donors declines?

The answer is simple: The donors who still give to charity are giving more than they used to, even after adjusting for inflation.

The total amount the typical U.S. donor gave in a year rose from $3,131 in 2018 to $3,651 in 2020. That’s an 16.6% increase in just two years.

We also found that American donors with higher incomes, more education and more wealth are giving larger amounts than they used to.

Bouts of economic volatility and, in recent years, inflation running at levels not seen since the 1980s may have left many American families with less money to donate to charities.

Other factors include cultural shifts, a decline in religious affiliation and a loss of trust in institutions of all kinds.

What’s around the corner

Changes enacted during the first Trump administration have been reverberating in recent years, and the second Trump administration’s policies are also likely to influence giving trends.

Most of the taxpayers who had previously been able to take advantage of the charitable deduction, which reduces taxable income in accordance to the value of a taxpayer’s donations, stopped itemizing and instead took advantage of the standard deduction after President Donald Trump signed the Tax Cuts and Jobs Act into law in late 2017.

That’s because the 2017 tax reforms increased the standard deduction. As a result, many people stopped itemizing their tax returns and started using the standard deduction instead.

About 30% of taxpayers itemized in 2017, which meant they could benefit from the charitable deduction. But since 2018, only about 10% of them have been itemizing. A recent study one of us worked on determined that the tax changes reduced charitable giving by $20 billion in 2018 alone.

The White House could attempt to address the sustained decline in the share of Americans making charitable donations by considering policies that have the potential to encourage more people to give to charity.

The shrinking ranks of American donors matters because philanthropy plays a prominent role in fulfilling Americans’ spiritual, intellectual and material needs and aspirations for people of all backgrounds.

Una Osili receives funding from Bill and Melinda Foundation, Charles Stewart Mott Foundation, Fidelity Charitable Catalyst Fund, John Templeton Foundation, Google.org

Xiao “Jimmy” Han receives funding from Bill & Melinda Gates Foundation, Charles Stewart Mott Foundation, Fidelity Charitable Catalyst Fund, Google.org Charitable Giving Fund, and the John Templeton Foundation.

– ref. Donors are down, but dollars are up – how US charitable giving is changing – https://theconversation.com/donors-are-down-but-dollars-are-up-how-us-charitable-giving-is-changing-246473

MIL OSI – Global Reports –

January 29, 2025

MIL-OSI: First Financial Northwest, Inc. Reports Net Income of $1.2 Million or $0.13 per Diluted Share for the Fourth Quarter and $1.1 Million or $0.12 per Diluted Share for the Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

RENTON, Wash., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Financial Northwest, Inc. (the “Company”) (NASDAQ GS: FFNW), the holding company for First Financial Northwest Bank (the “Bank”), today reported net income for the quarter ended December 31, 2024, of $1.2 million, or $0.13 per diluted share, compared to a net loss of $608,000, or $(0.07) per diluted share, for the quarter ended September 30, 2024, and net income of $1.2 million, or $0.13 per diluted share, for the quarter ended December 31, 2023. For the twelve months ended December 31, 2024, the Company reported net income of $1.1 million, or $0.12 per diluted share, compared to net income of $6.3 million, or $0.69 per diluted share, for the year ended December 31, 2023.

The improved performance in the current quarter compared to the quarter ended September 30, 2024, was due primarily to a $1.3 million recapture of provision for credit losses. This compares to a provision for credit losses of $1.6 million in the prior quarter that mainly related to two participation loans to a single borrowing entity totaling approximately $6.0 million, where we were not the lead lender. During the quarter ended December 31, 2024, one of the two loans was paid in full and the borrower paid down the balance on the other loan using proceeds from the sale of another property. Subsequently, we received an updated appraisal of the property securing the remaining loan that confirmed a value sufficient to support the recapture of the previously allocated specific reserve for this loan.

“I am pleased to report that our net loans receivable increased $14.0 million in the quarter as our lending teams continue to focus on growing our loan portfolio. In addition, our credit quality remained strong, with only $842,000 in nonaccrual loans, representing 0.07% of our $1.16 billion total loan portfolio,” stated Joseph W. Kiley III, President and CEO.

“We continue to prepare for the closing of the sale of the Bank to Global Federal Credit Union (“Global”), as we await the final required approval from Global’s primary regulator, the National Credit Union Administration, before we can proceed towards closing the transaction,” concluded Kiley.

Highlights for the quarter and year ended December 31, 2024:

Net loans receivable totaled $1.14 billion at December 31, 2024, compared to $1.13 billion at September 30, 2024, and $1.18 billion at December 31, 2023.
Book value per common share was $17.50 at December 31, 2024, compared to $17.39 at September 30, 2024, and $17.61 at December 31, 2023.
The Bank’s Tier 1 leverage and total capital ratios were 11.2% and 16.7% at December 31, 2024, compared to 10.9% and 16.7% at September 30, 2024, and 10.2% and 16.2% at December 31, 2023, respectively.
Credit quality remained strong with nonaccrual loans totaling $842,000, or 0.07% of total loans at December 31, 2024.
A $1.3 million recapture of provision for credit losses was recorded in the current quarter, compared to a $1.6 million and no provision for credit losses recorded during the prior quarter and the same quarter a year ago, respectively. We recorded a $50,000 recapture of provision for credit losses for the year ended December 31, 2024, compared to a $208,000 recapture of provision for credit losses for the year ended December 31, 2023.

Deposits decreased $36.0 million to $1.13 billion at December 31, 2024, compared to $1.17 billion at September 30, 2024, and decreased $62.7 million compared to $1.19 billion at December 31, 2023. The decrease in deposits at December 31, 2024, compared to September 30, 2024, was due primarily to a $19.7 million decrease in noninterest-bearing demand deposits and a $15.5 million decrease in money market deposits. The decrease in deposits at December 31, 2024, from December 31, 2023, reflects declines in all deposit categories except for retail certificates of deposit which increased $91.8 million.

Federal Home Loan Bank (“FHLB”) advances totaled $110.0 million at December 31, 2024, compared to $100.0 million at September 30, 2024, and $125.0 million at December 31, 2023. Of the total FHLB advances at December 31, 2024, $100.0 million were tied to cash flow hedge agreements under which the Bank pays a fixed rate and receives a variable rate in return to assist in the Bank’s interest rate risk management efforts. These cash flow hedge agreements had a weighted average remaining term of 27.8 months and a weighted average fixed interest rate of 1.93% as of December 31, 2024. The average cost of borrowings was 2.35% for the quarter ended December 31, 2024, compared to 3.19% for the quarter ended September 30, 2024, and 2.40% for the quarter ended December 31, 2023.

The following table presents a breakdown of our total deposits (unaudited):

	Dec 31, 2024		Sep 30, 2024		Dec 31, 2023		Three Month Change			One Year Change
Deposits:	(Dollars in thousands)
Noninterest-bearing demand	$	80,772	$	100,466	$	100,899	$	(19,694	)	$	(20,127	)
Interest-bearing demand		56,957		55,506		56,968		1,451			(11	)
Savings		16,277		17,031		18,886		(754	)		(2,609	)
Money market		480,520		495,978		529,411		(15,458	)		(48,891	)
Certificates of deposit, retail		448,974		447,474		357,153		1,500			91,821
Brokered deposits		47,900		50,900		130,790		(3,000	)		(82,890	)
Total deposits	$	1,131,400	$	1,167,355	$	1,194,107	$	(35,955	)	$	(62,707	)

The following tables present an analysis of total deposits by branch office (unaudited):

December 31, 2024
	Noninterest- bearing demand		Interest- bearing demand		Savings		Money market		Certificates of deposit, retail		Brokered deposits		Total
	(Dollars in thousands)
King County
Renton	$	26,242	$	14,786	$	10,197	$	284,670	$	309,858	$	–	$	645,753
Landing		3,245		1,359		170		7,958		14,965		–		27,697
Woodinville		1,738		3,168		620		8,834		11,511		–		25,871
Bothell		2,792		930		408		1,421		6,762		–		12,313
Crossroads		11,075		2,762		86		29,208		18,772		–		61,903
Kent		3,766		4,873		40		18,673		8,471		–		35,823
Kirkland		5,524		1,924		208		11,574		1,855		–		21,085
Issaquah		1,244		238		13		2,298		6,562		–		10,355
Total King County		55,626		30,040		11,742		364,636		378,756		–		840,800
Snohomish County
Mill Creek		3,184		3,496		342		16,135		12,487		–		35,644
Edmonds		7,316		8,542		338		16,482		13,003		–		45,681
Clearview		4,909		5,653		1,494		17,934		13,778		–		43,768
Lake Stevens		3,633		5,946		1,314		24,571		17,004		–		52,468
Smokey Point		2,544		1,800		1,032		36,950		9,619		–		51,945
Total Snohomish County		21,586		25,437		4,520		112,072		65,891		–		229,506
Pierce County
University Place		1,837		54		1		2,113		2,122		–		6,127
Gig Harbor		1,723		1,426		14		1,699		2,205		–		7,067
Total Pierce County		3,560		1,480		15		3,812		4,327		–		13,194

Brokered deposits		–		–		–		–		–		47,900		47,900

Total deposits	$	80,772	$	56,957	$	16,277	$	480,520	$	448,974	$	47,900	$	1,131,400

September 30, 2024
	Noninterest- bearing demand		Interest- bearing demand		Savings		Money market		Certificates of deposit, retail		Brokered deposits		Total
	(Dollars in thousands)
King County
Renton	$	29,388	$	14,153	$	10,654	$	305,836	$	315,721	$	–	$	675,752
Landing		3,442		1,660		237		8,348		12,733		–		26,420
Woodinville		1,968		2,234		959		8,852		11,522		–		25,535
Bothell		2,965		1,151		401		1,536		5,918		–		11,971
Crossroads		14,770		2,039		107		31,665		18,136		–		66,717
Kent		5,417		10,502		44		16,053		8,562		–		40,578
Kirkland		10,967		1,890		206		11,243		2,240		–		26,546
Issaquah		1,186		294		18		2,547		6,580		–		10,625
Total King County		70,103		33,923		12,626		386,080		381,412		–		884,144
Snohomish County
Mill Creek		3,990		2,171		384		14,628		10,312		–		31,485
Edmonds		9,254		6,831		330		18,549		13,281		–		48,245
Clearview		5,587		5,242		1,462		21,206		12,251		–		45,748
Lake Stevens		3,970		4,282		1,244		23,257		15,571		–		48,324
Smokey Point		2,994		1,664		969		29,353		11,387		–		46,367
Total Snohomish County		25,795		20,190		4,389		106,993		62,802		–		220,169
Pierce County
University Place		2,940		53		4		1,848		1,458		–		6,303
Gig Harbor		1,628		1,340		12		1,057		1,802		–		5,839
Total Pierce County		4,568		1,393		16		2,905		3,260		–		12,142

Brokered deposits		–		–		–		–		–		50,900		50,900

Total deposits	$	100,466	$	55,506	$	17,031	$	495,978	$	447,474	$	50,900	$	1,167,355

Net loans receivable totaled $1.14 billion at December 31, 2024, compared to $1.13 billion at September 30, 2024, and $1.18 billion at December 31, 2023. The increase in the current quarter compared to the quarter ended September 30, 2024, was due to growth in non-residential commercial real estate, construction/land, consumer and one-to-four family residential loans, partially offset by declines in multifamily and business lending. The average balance of net loans receivable totaled $1.13 billion for both the quarters ended December 31, 2024, and September 30, 2024, compared to $1.17 billion for the quarter ended December 31, 2023. For the year ended December 31, 2024, the average balance of net loans receivable was $1.14 billion, compared to $1.17 billion for the year ended December 31, 2023.

The allowance for credit losses (“ACL”) represented 1.30% of total loans receivable at December 31, 2024, compared to 1.42% of total loans receivable at September 30, 2024, and 1.28% at December 31, 2023. The change in the ACL at December 31, 2024, compared to September 30, 2024, related primarily to activity on the single lending relationship discussed above.

Nonaccrual loans totaled $842,000 at December 31, 2024, compared to $853,000 at September 30, 2024, and $220,000 at December 31, 2023. There was no other real estate owned at December 31, 2024, September 30, 2024, or December 31, 2023.

Net interest income totaled $8.4 million for the quarter ended December 31, 2024, compared to $8.5 million for the quarter ended September 30, 2024, and $9.3 million for the quarter ended December 31, 2023. The decrease in the current quarter compared to the quarter ended September 30, 2024, was primarily due to declines in interest from earning assets, partially offset by declines in interest expense. For the year ended December 31, 2024, net interest income totaled $34.8 million, compared to $40.5 million for the year ended December 31, 2023, as total interest expense increased by $5.0 million and total interest income declined by $800,000.

Total interest income decreased $419,000 to $19.0 million for the quarter ended December 31, 2024, compared to $19.4 million for the quarter ended September 30, 2024, and decreased $1.3 million compared to $20.3 million for the quarter ended December 31, 2023. The decrease in total interest income during the current quarter compared to the prior quarter was primarily due to a $250,000 or 29.0% decline in interest income earned on interest-earning deposits held with banks. This decline resulted from a 54 basis point decrease in the average yield earned on these deposits, coupled with a $13.6 million reduction in their average balance. Additionally, interest income on loans, including fees, declined by $146,000 or 0.9%, primarily due to a $2.5 million decrease in the average balance of loans and, to a lesser extent, a four basis point decrease in the yield earned on loans. The decrease in total interest income during the current quarter compared to the comparable quarter in 2023 was primarily due to declines in interest income on loans, including fees, of $631,000, investments of $449,000, and interest-earning deposits with banks of $267,000, partially offset by an increase in dividends on FHLB stock of $56,000.

Yield on loans, the largest component of our interest-earning assets, declined to 5.82% during the recent quarter, compared to 5.86% and 5.83% for the quarters ended September 30, 2024, and December 31, 2023, respectively. The yield on investment securities for the current quarter was 4.29%, down slightly from 4.30% last quarter and up from 4.11% a year ago.

Total interest expense was $10.6 million for the quarter ended December 31, 2024, down from $11.0 million for both quarters ended September 30, 2024, and December 31, 2023. The decrease from the quarter ended September 30, 2024, was due to lower interest expense related to FHLB advances and other borrowings, which declined due to a decline in the average balance of FHLB advances and other borrowings, partially offset by higher interest expense on deposits driven by an increase in the average balance of interest-bearing deposits. The decrease from the quarter ended December 31, 2023, was due to lower interest expense on deposits and FHLB advances and other borrowings, primarily as a result of lower average balances of these liabilities.

Net interest margin was 2.50% for the quarter ended December 31, 2024, compared to 2.46% for the quarter ended September 30, 2024, and 2.54% for the quarter ended December 31, 2023. The increase in the net interest margin for the quarter ended December 31, 2024, compared to the prior quarter was primarily due to a decline in the average balance of total interest-earning assets, as net interest income was relatively unchanged during the periods. The decrease in the net interest margin for the quarter ended December 31, 2024, compared to the same quarter a year ago was primarily due to a decline in net interest income, which was partially offset by a decline in the average balance of total interest-earning assets. The net interest margin for the month of December 2024 was 2.55%.

Noninterest income for the quarter ended December 31, 2024, totaled $658,000, down from $677,000 for the quarter ended September 30, 2024, and up from $633,000 for the quarter ended December 31, 2023. The decrease compared to the quarter ended September 30, 2024, was primarily due to lower loan and deposit related fees and BOLI income, partially offset by an increase in wealth management revenue. Noninterest income remained nearly flat at $2.8 million for both the years ended December 31, 2024, and December 31, 2023, as increases in BOLI income, wealth management revenue and loan related fees in the current year were nearly entirely offset by decreases in deposit related fees and other noninterest income.

Noninterest expense totaled $8.9 million for the quarter ended December 31, 2024, compared to $8.5 million for the quarter ended September 30, 2024, and $8.4 million for the quarter ended December 31, 2023. The increase from the quarter ended September 30, 2024, was primarily due to a $860,000 increase in salaries and employee benefits due to 2025 merit increases implemented in December 2024, as well as year-end accruals related to incentive compensation, partially offset by decreases in nearly all other categories, most notably professional fees and other general and administrative expenses. Incentive compensation increased due to the project that modified certain loans that would have otherwise been ineligible for Global Federal Credit Union to hold on their balance sheet. The increase compared to the quarter ended December 31, 2023, was primarily due to a $644,000 increase in salaries and employee benefits and an $87,000 increase in data processing expenses, partially offset by decreases across other expense categories. Noninterest expense totaled $36.7 million for the year ended December 31, 2024, compared to $35.7 million for the year ended December 31, 2023. The year-over-year increase was primarily due to an increase in professional fees, data processing and salaries and employee benefits, partially offset by lower marketing and other general and administrative expenses and regulatory assessments.

First Financial Northwest, Inc. is the parent company of First Financial Northwest Bank; an FDIC insured Washington State-chartered commercial bank headquartered in Renton, Washington, serving the Puget Sound Region through 15 full-service banking offices. For additional information about us, please visit our website at ffnwb.com and click on the “Investor Relations” link at the bottom of the page.

Forward-looking statements:

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events many of which are inherently uncertain and outside of our control. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about, among other things, our pending transaction with Global Federal Credit Union (“Global”) whereby Global, pursuant to the definitive purchase and assumption agreement (the “P&A Agreement”), will acquire substantially all of the assets and assume substantially all of the liabilities of the Bank, expectations of the business environment in which we operate, projections of future performance or financial items, perceived opportunities in the market, potential future credit experience, and statements regarding our mission and vision. These forward-looking statements are based on current management expectations and may, therefore, involve risks and uncertainties. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements made by, or on behalf of, us and could negatively affect our operating and stock performance. Factors that could cause our actual results to differ materially from those described in the forward-looking statements, include, but are not limited to, the following: the occurrence of any event, change or other circumstances that could give rise to the right of one or all of the parties to terminate the P&A Agreement; delays in completing the P&A Agreement; the failure to obtain necessary regulatory approvals or to satisfy any of the other conditions to the Global transaction, including the P&A Agreement, on a timely basis or at all; delays or other circumstances arising from the dissolution of the Bank and the Company following completion of the P&A Agreement; diversion of management’s attention from ongoing business operations and opportunities during the pending Global transaction; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement of the Global transaction; adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a recession or slowed economic growth; changes in the interest rate environment, including increases or decreases in the Federal Reserve benchmark rate and duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; legislative and regulatory changes; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; effects of critical accounting policies and judgments, including the use of estimates in determining the fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; the potential effects of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with or furnished to the Securities and Exchange Commission – that are available on our website at www.ffnwb.com and on the SEC’s website at www.sec.gov.

Any of the forward-looking statements that we make in this Press Release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)
Assets	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Three Month Change		One Year Change

Cash on hand and in banks	$	9,535		$	8,423		$	8,391		13.2	%	13.6	%
Interest-earning deposits with banks		36,182			72,884			22,138		(50.4	)	63.4
Investments available-for-sale, at fair value		151,642			156,609			207,915		(3.2	)	(27.1	)
Investments held-to-maturity, at amortized cost		2,468			2,462			2,456		0.2		0.5
Loans receivable, net of allowance of $15,066, $16,265 and $15,306, respectively		1,140,186			1,126,146			1,175,925		1.2		(3.0	)
Federal Home Loan Bank (“FHLB”) stock, at cost		5,853			5,403			6,527		8.3		(10.3	)
Accrued interest receivable		6,108			6,638			7,359		(8.0	)	(17.0	)
Deferred tax assets, net		2,582			2,690			2,648		(4.0	)	(2.5	)
Premises and equipment, net		18,166			18,584			19,667		(2.2	)	(7.6	)
Bank owned life insurance (“BOLI”), net		38,950			38,661			37,653		0.7		3.4
Prepaid expenses and other assets		9,676			8,898			10,478		8.7		(7.7	)
Right of use asset (“ROU”), net		2,357			2,473			2,617		(4.7	)	(9.9	)
Goodwill		889			889			889		0.0		0.0
Core deposit intangible, net		295			326			419		(9.5	)	(29.6	)
Total assets	$	1,424,889		$	1,451,086		$	1,505,082		(1.8	)	(5.3	)

Liabilities and Stockholders’ Equity

Deposits
Noninterest-bearing deposits	$	80,772		$	100,466		$	100,899		(19.6	)	(19.9	)
Interest-bearing deposits		1,050,628			1,066,889			1,093,208		(1.5	)	(3.9	)
Total deposits		1,131,400			1,167,355			1,194,107		(3.1	)	(5.3	)
FHLB advances		110,000			100,000			125,000		10.0		(12.0	)
Advance payments from borrowers for taxes and insurance		2,873			5,211			2,952		(44.9	)	(2.7	)
Lease liability, net		2,550			2,673			2,806		(4.6	)	(9.1	)
Accrued interest payable		526			294			2,739		78.9		(80.8	)
Other liabilities		15,985			15,340			15,818		4.2		1.1
Total liabilities		1,263,334			1,290,873			1,343,422		(2.1	)	(6.0	)

Commitments and contingencies

Stockholders’ Equity
Preferred stock, $0.01 par value; authorized 10,000,000 shares; no shares issued or outstanding		–			–			–		n/a		n/a
Common stock, $0.01 par value; authorized 90,000,000 shares; issued and outstanding 9,230,010 shares at December 31, 2024, 9,213,969 shares at September 30, 2024, and 9,179,510 shares at December 31, 2023		93			92			92		1.1		1.1
Additional paid-in capital		72,823			72,916			73,035		(0.1	)	(0.3	)
Retained earnings		94,892			93,692			96,206		1.3		(1.4	)
Accumulated other comprehensive loss, net of tax		(6,253	)		(6,487	)		(7,673	)	(3.6	)	(18.5	)
Total stockholders’ equity		161,555			160,213			161,660		0.8		(0.1	)
Total liabilities and stockholders’ equity	$	1,424,889		$	1,451,086		$	1,505,082		(1.8	)%	(5.3	)%

FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Consolidated Income Statements (Dollars in thousands, except per share data) (Unaudited)
	Quarter Ended
	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023		Three Month Change		One Year Change
Interest income
Loans, including fees	$	16,512		$	16,658		$	17,143	(0.9	)%	(3.7	)%
Investments		1,694			1,744			2,143	(2.9	)	(21.0	)
Interest-earning deposits with banks		613			863			880	(29.0	)	(30.3	)
Dividends on FHLB Stock		177			150			121	18.0		46.3
Total interest income		18,996			19,415			20,287	(2.2	)	(6.4	)
Interest expense
Deposits		9,956			9,748			10,281	2.1		(3.2	)
FHLB advances and other borrowings		600			1,213			731	(50.5	)	(17.9	)
Total interest expense		10,556			10,961			11,012	(3.7	)	(4.1	)
Net interest income		8,440			8,454			9,275	(0.2	)	(9.0	)
(Recapture of provision) provision for credit losses		(1,250	)		1,575			–	(179.4	)	n/a
Net interest income after (recapture of provision) provision for credit losses		9,690			6,879			9,275	40.9		4.5

Noninterest income
BOLI income		289			295			255	(2.0	)	13.3
Wealth management revenue		88			42			60	109.5		46.7
Deposit related fees		226			236			234	(4.2	)	(3.4	)
Loan related fees		44			96			60	(54.2	)	(26.7	)
Other		11			8			24	37.5		(54.2	)
Total noninterest income		658			677			633	(2.8	)	3.9

Noninterest expense
Salaries and employee benefits		5,466			4,606			4,822	18.7		13.4
Occupancy and equipment		1,154			1,183			1,231	(2.5	)	(6.3	)
Professional fees		377			585			431	(35.6	)	(12.5	)
Data processing		805			838			718	(3.9	)	12.1
Regulatory assessments		160			165			196	(3.0	)	(18.4	)
Insurance and bond premiums		114			113			113	0.9		0.9
Marketing		24			46			70	(47.8	)	(65.7	)
Other general and administrative		834			952			858	(12.4	)	(2.8	)
Total noninterest expense		8,934			8,488			8,439	5.3		5.9
Income before federal income tax provision (benefit)		1,414			(932	)		1,469	(251.7	)	(3.7	)
Federal income tax provision (benefit)		214			(324	)		275	(166.0	)	(22.2	)
Net income (loss)	$	1,200		$	(608	)	$	1,194	(297.4	)%	0.5	%

Basic earnings (loss) per share	$	0.13		$	(0.07	)	$	0.13
Diluted earnings (loss) per share	$	0.13		$	(0.07	)	$	0.13
Weighted average number of common shares outstanding		9,220,593			9,190,146			9,151,892
Weighted average number of diluted shares outstanding		9,238,565			9,190,146			9,176,724

FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Consolidated Income Statements (Dollars in thousands, except per share data) (Unaudited)
	Year Ended December 31,
		2024			2023		One Year Change
Interest income
Loans, including fees	$	66,941		$	66,938		0.0	%
Investments		7,388			8,474		(12.8	)
Interest-earning deposits with banks		2,444			2,261		8.1
Dividends on FHLB Stock		597			485		23.1
Total interest income		77,370			78,158		(1.0	)
Interest expense
Deposits		39,117			34,407		13.7
FHLB advances and other borrowings		3,490			3,208		8.8
Total interest expense		42,607			37,615		13.3
Net interest income		34,763			40,543		(14.3	)
Recapture of provision for credit losses		(50	)		(208	)	(76.0	)
Net interest income after recapture of provision for credit losses		34,813			40,751		(14.6	)

Noninterest income
BOLI		1,245			1,081		15.2
Wealth management revenue		279			253		10.3
Deposit accounts related fees		923			956		(3.5	)
Loan related fees		296			275		7.6
Other		53			208		(74.5	)
Total noninterest income		2,796			2,773		0.8

Noninterest expense
Salaries and employee benefits		20,652			20,366		1.4
Occupancy and equipment		4,789			4,748		0.9
Professional fees		3,011			2,288		31.6
Data processing		3,285			2,857		15.0
Regulatory assessments		662			763		(13.2	)
Insurance and bond premiums		477			468		1.9
Marketing		179			343		(47.8	)
Other general and administrative		3,638			3,833		(5.1	)
Total noninterest expense		36,693			35,666		2.9
Income before federal income tax (benefit) provision		916			7,858		(88.3	)
Federal income tax (benefit) provision		(156	)		1,553		(110.0	)
Net income	$	1,072		$	6,305		(83.0	)%

Basic earnings per share	$	0.12		$	0.69
Diluted earnings per share	$	0.12		$	0.69
Weighted average number of common shares outstanding		9,183,900			9,126,209
Weighted average number of diluted shares outstanding		9,238,016			9,152,617

The following table presents a breakdown of the loan portfolio (unaudited):

	December 31, 2024					September 30, 2024					December 31, 2023
	Amount			Percent		Amount			Percent		Amount			Percent
	(Dollars in thousands)
Commercial real estate:
Residential:
Multifamily	$	126,303		10.9	%	$	132,811		11.6	%	$	138,149		11.6	%
Total multifamily residential		126,303		10.9			132,811		11.6			138,149		11.6

Non-residential:
Retail		110,787		9.6			118,840		10.4			124,172		10.4
Office		73,306		6.3			73,778		6.5			72,778		6.1
Hotel / motel		72,434		6.3			54,716		4.8			63,597		5.3
Storage		32,229		2.8			32,443		2.8			33,033		2.8
Mobile home park		22,701		2.0			22,443		2.0			21,701		1.8
Warehouse		23,363		2.0			18,743		1.6			19,218		1.6
Nursing Home		9,713		0.8			11,407		1.0			11,610		1.0
Other non-residential		29,865		2.5			30,719		2.7			31,750		2.6
Total non-residential		374,398		32.3			363,089		31.8			377,859		31.6

Construction/land:
One-to-four family residential		49,674		4.3			42,846		3.8			47,149		4.0
Multifamily		7,884		0.7			7,227		0.6			4,004		0.3
Land development		9,582		0.8			10,148		0.8			9,771		0.8
Total construction/land		67,140		5.8			60,221		5.2			60,924		5.1

One-to-four family residential:
Permanent owner occupied		284,650		24.7			279,744		24.5			284,471		23.9
Permanent non-owner occupied		217,420		18.8			221,127		19.4			228,752		19.2
Total one-to-four family residential		502,070		43.5			500,871		43.9			513,223		43.1

Business
Aircraft		–		0.0			–		0.0			1,945		0.1
Small Business Administration (“SBA”)		1,729		0.2			1,745		0.2			1,794		0.3
Paycheck Protection Plan (“PPP”)		159		0.0			238		0.0			473		0.0
Other business		10,247		0.9			12,416		1.1			24,869		2.1
Total business		12,135		1.1			14,399		1.3			29,081		2.5

Consumer
Classic, collectible and other auto		59,580		5.2			58,085		5.1			58,618		5.0
Other consumer		13,626		1.2			12,935		1.1			13,377		1.1
Total consumer		73,206		6.4			71,020		6.2			71,995		6.1
Total loans		1,155,252		100.0	%		1,142,411		100.0	%		1,191,231		100.0	%
Less:
ACL		15,066					16,265					15,306
Loans receivable, net	$	1,140,186				$	1,126,146				$	1,175,925

Concentrations of credit: ⁽¹⁾
Construction loans as % of total capital		40.5	%				36.8	%				38.3	%
Total non-owner occupied commercial real estate as % of total capital		300.8	%				296.2	%				316.8	%

⁽¹⁾ Concentrations of credit percentages are for First Financial Northwest Bank only using classifications in accordance with FDIC regulatory guidelines.

FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Key Financial Measures (Unaudited)
	At or For the Quarter Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
		2024			2024			2024			2024			2023
	(Dollars in thousands, except per share data)
Performance Ratios: ⁽¹⁾
Return on assets		0.33	%		(0.17	)%		0.43	%		(0.29	)%		0.31	%
Return on equity		2.96			(1.50	)		3.88			(2.67	)		2.97
Dividend payout ratio		0.00			0.00			76.47			(108.33	)		100.00
Equity-to-assets ratio		11.34			11.04			11.10			10.91			10.74
Tangible equity ratio ⁽²⁾		11.26			10.97			11.02			10.83			10.66
Net interest margin		2.50			2.46			2.66			2.55			2.54
Average interest-earning assets to average interest-bearing liabilities		116.51			116.46			117.01			116.40			115.84
Efficiency ratio		98.20			92.96			82.35			116.97			85.17
Noninterest expense as a percent of average total assets		2.49			2.32			2.21			3.05			2.18
Book value per common share	$	17.50		$	17.39		$	17.51		$	17.46		$	17.61
Tangible book value per share ⁽²⁾		17.37			17.26			17.37			17.32			17.47

Capital Ratios: ⁽³⁾
Tier 1 leverage ratio		11.16	%		10.86	%		10.91	%		10.41	%		10.18	%
Common equity tier 1 capital ratio		15.40			15.43			15.39			14.98			14.90
Tier 1 capital ratio		15.40			15.43			15.39			14.98			14.90
Total capital ratio		16.65			16.68			16.64			16.24			16.15

Asset Quality Ratios: ⁽⁴⁾
Nonaccrual loans as a percent of total loans		0.07	%		0.07	%		0.41	%		0.02	%		0.02	%
Nonaccrual loans as a percent of total assets		0.06			0.06			0.32			0.01			0.01
ACL as a percent of total loans		1.30			1.42			1.29			1.30			1.28
Net charge-offs to average loans receivable, net		(0.00	)		0.00			0.00			0.00			0.00

Allowance for Credit Losses:
ACL – loans
Beginning balance	$	16,265		$	14,796		$	14,996		$	15,306		$	15,306
(Recapture of provision) provision for credit losses		(1,200	)		1,500			(200	)		(300	)		–
Charge-offs		–			(31	)		–			(10	)		–
Recoveries		1			–			–			–			–
Ending balance	$	15,066		$	16,265		$	14,796		$	14,996		$	15,306

Allowance for unfunded commitments
Beginning balance	$	639		$	564		$	564		$	439		$	439
(Recapture of provision) provision for credit losses		(50	)		75			–			125			–
Ending balance	$	589		$	639		$	564		$	564		$	439

(Recapture of provision) provision for credit losses
ACL – loans	$	(1,200	)	$	1,500		$	(200	)	$	(300	)	$	–
Allowance for unfunded commitments		(50	)		75			–			125			–
Total	$	(1,250	)	$	1,575		$	(200	)	$	(175	)	$	–

⁽¹⁾ Performance ratios are calculated on an annualized basis.
⁽²⁾ Non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents.
⁽³⁾ Capital ratios are for First Financial Northwest Bank only.
⁽⁴⁾ Loans are reported net of undisbursed funds.

FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Key Financial Measures (Unaudited)
	At or For the Quarter Ended
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,
		2024			2024			2024			2024			2023
	(Dollars in thousands)
Yields and Costs: ⁽¹⁾
Yield on loans		5.82	%		5.86	%		5.93	%		5.88	%		5.83	%
Yield on investments		4.29			4.30			4.38			4.11			4.11
Yield on interest-earning deposits		4.73			5.27			5.25			5.28			5.32
Yield on FHLB stock		12.87			7.73			8.63			7.79			7.29
Yield on interest-earning assets		5.63	%		5.66	%		5.73	%		5.62	%		5.56	%

Cost of interest-bearing deposits		3.77	%		3.80	%		3.71	%		3.69	%		3.62	%
Cost of borrowings		2.35			3.19			2.64			2.65			2.40
Cost of interest-bearing liabilities		3.64	%		3.72	%		3.59	%		3.58	%		3.50	%

Cost of total deposits ⁽²⁾		3.46	%		3.47	%		3.38	%		3.38	%		3.31	%
Cost of funds ⁽²⁾		3.37			3.44			3.30			3.31			3.23

Average Balances:
Loans	$	1,129,019		$	1,131,473		$	1,139,017		$	1,160,156		$	1,167,339
Investments		156,975			161,232			173,102			202,106			206,837
Interest-earning deposits		51,518			65,149			36,959			37,032			65,680
FHLB stock		5,471			7,719			6,714			6,554			6,584
Total interest-earning assets	$	1,342,983		$	1,365,573		$	1,355,792		$	1,405,848		$	1,446,440

Interest-bearing deposits	$	1,051,201		$	1,021,041		$	1,029,608		$	1,082,168		$	1,127,690
Borrowings		101,522			151,478			129,126			125,604			120,978
Total interest-bearing liabilities		1,152,723			1,172,519			1,158,734			1,207,772			1,248,668
Noninterest-bearing deposits		93,331			96,003			101,196			99,173			102,869
Total deposits and borrowings	$	1,246,054		$	1,268,522		$	1,259,930		$	1,306,945		$	1,351,537

Average assets	$	1,429,788		$	1,453,431		$	1,446,207		$	1,495,753		$	1,538,955
Average stockholders’ equity		161,093			161,569			161,057			161,823			159,659

⁽¹⁾ Yields and costs are annualized.
⁽²⁾ Includes noninterest-bearing deposits.
⁽³⁾ Includes total borrowings and deposits (including noninterest-bearing deposits).

FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Key Financial Measures (Unaudited)
	At or For the Year Ended December 31,
		2024			2023			2022			2021			2020
				(Dollars in thousands, except per share data)
Performance Ratios:
Return on assets		0.07	%		0.41	%		0.91	%		0.86	%		0.63	%
Return on equity		0.66			3.93			8.34			7.65			5.50
Dividend payout ratio		216.67			75.36			32.65			33.59			45.45
Equity-to-assets ratio		11.34			10.74			10.67			11.07			11.26
Tangible equity ratio ⁽¹⁾		11.26			10.66			10.58			10.97			11.15
Net interest margin		2.54			2.82			3.54			3.35			3.15
Average interest-earning assets to average interest-bearing liabilities		116.59			116.69			119.18			118.59			115.62
Efficiency ratio		97.69			82.34			69.04			68.32			72.39
Noninterest expense as a percent of average total assets		2.52			2.33			2.44			2.35			2.39
Book value per common share	$	17.50		$	17.61		$	17.57		$	17.30		$	16.05
Tangible book value per share ⁽¹⁾		17.37			17.47			17.41			17.13			15.88

Capital Ratios: ⁽²⁾
Tier 1 leverage ratio		11.16	%		10.18	%		10.31	%		10.34	%		10.29	%
Common equity tier 1 capital ratio		15.40			14.90			14.37			14.23			14.32
Tier 1 capital ratio		15.40			14.90			14.37			14.23			14.32
Total capital ratio		16.65			16.15			15.62			15.48			15.57

Asset Quality Ratios: ⁽³⁾
Nonaccrual loans as a percent of total loans		0.07	%		0.02	%		0.02	%		0.00	%		0.19	%
Nonaccrual loans as a percent of total assets		0.06			0.01			0.01			0.00			0.18
ACL as a percent of total loans		1.30			1.28			1.29			1.40			1.36
Net charge-offs (recoveries) to average loans receivable, net		0.00			0.00			0.00			(0.02	)		(0.00	)

ACL – loans
Beginning balance	$	15,306		$	15,227		$	15,657		$	15,174		$	13,218
Beginning balance adjustment from adoption of Topic 326		–			500			–			–			–
(Recapture of provision) provision for credit losses		(200	)		(400	)		(400	)		300			1,900
Charge-offs		(41	)		(22	)		(37	)		–			(2	)
Recoveries		1			1			7			183			58
Ending balance	$	15,066		$	15,306		$	15,227		$	15,657		$	15,174

Allowance for unfunded commitments
Beginning balance	$	439		$	247		$	281		$	351		$	428
Provision (recapture of provision) for credit losses		150			192			(34	)		(70	)		(77	)
Ending balance	$	589		$	439		$	247		$	281		$	351

(Recapture of provision) provision for credit losses
ACL – loans	$	(200	)	$	(400	)	$	(400	)	$	300		$	1,900
Allowance for unfunded commitments		150			192			(34	)		(70	)		(77	)
Total	$	(50	)	$	(208	)	$	(434	)	$	230		$	1,823

⁽¹⁾ Non-GAAP financial measures. Refer to Non-GAAP Financial Measures at the end of this press release for a reconciliation to the nearest GAAP equivalents.
⁽²⁾ Capital ratios are for First Financial Northwest Bank only.
⁽³⁾ Loans are reported net of undisbursed funds.

FIRST FINANCIAL NORTHWEST, INC. AND SUBSIDIARIES Key Financial Measures (Unaudited)
	At or For the Year Ended December 31,
		2024			2023			2022			2021			2020
	(Dollars in thousands)
Yields and Costs:
Yield on loans		5.87	%		5.71	%		4.69	%		4.57	%		4.69	%
Yield on investments		4.26			3.97			2.77			1.83			2.39
Yield on interest-earning deposits		5.12			5.06			1.28			0.12			0.21
Yield on FHLB stock		9.03			7.07			5.08			5.29			4.85
Yield on interest-earning assets		5.66	%		5.44	%		4.33	%		4.01	%		4.36	%

Cost of deposits		3.74	%		3.12	%		0.87	%		0.71	%		1.42	%
Cost of borrowings		2.75			2.52			1.70			1.39			1.31
Cost of interest-bearing liabilities		3.63	%		3.05	%		0.95	%		0.78	%		1.41	%

Cost of interest-bearing deposits		3.42	%		2.83	%		0.77	%		0.64	%		1.32	%
Cost of funds		3.35			2.80			0.86			0.71			1.32

Average Balances:
Loans	$	1,139,864		$	1,172,569		$	1,128,835		$	1,098,772		$	1,120,889
Investments		173,276			213,261			203,165			176,110			133,584
Interest-earning deposits		47,723			44,684			30,176			60,482			25,108
FHLB stock		6,614			6,857			6,256			6,271			6,600
Total interest-earning assets	$	1,367,477		$	1,437,371		$	1,368,432		$	1,341,635		$	1,286,181

Interest-bearing deposits	$	1,045,950		$	1,104,510		$	1,034,351		$	1,015,852		$	987,069
Borrowings		126,931			127,263			113,890			115,466			125,392
Total interest-bearing liabilities		1,172,881			1,231,773			1,148,241			1,131,318			1,112,461
Noninterest-bearing deposits		97,411			109,795			125,166			112,484			75,388
Total deposits and borrowings	$	1,270,292		$	1,341,568		$	1,273,407		$	1,243,802		$	1,187,849

Average assets	$	1,456,215		$	1,529,511		$	1,455,739		$	1,421,476		$	1,361,604
Average stockholders’ equity		161,385			160,428			158,685			160,041			155,587

Non-GAAP Financial Measures

In addition to financial results presented in accordance with generally accepted accounting principles (“GAAP”) utilized in the United States, this earnings release contains non-GAAP financial measures that include tangible equity, tangible assets, tangible book value per share, and the tangible equity-to-assets ratio. The Company believes that these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of goodwill and core deposit intangible, net and provides an alternative view of the Company’s performance over time and in comparison to the Company’s competitors. Non-GAAP financial measures have limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation and are not a substitute for other measures in this earnings release that are presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

The following tables provide a reconciliation between the GAAP and non-GAAP measures:

	Quarter Ended
		Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
	(Dollars in thousands, except per share data)
Tangible equity to tangible assets and tangible book value per share:
Total stockholders’ equity (GAAP)	$	161,555		$	160,213		$	160,693		$	160,183		$	161,660
Less:
Goodwill		889			889			889			889			889
Core deposit intangible, net		295			326			357			388			419
Tangible equity (Non-GAAP)	$	160,371		$	158,998		$	159,447		$	158,906		$	160,352

Total assets (GAAP)	$	1,424,889		$	1,451,086		$	1,447,753		$	1,468,350		$	1,505,082
Less:
Goodwill		889			889			889			889			889
Core deposit intangible, net		295			326			357			388			419
Tangible assets (Non-GAAP)	$	1,423,705		$	1,449,871		$	1,446,507		$	1,467,073		$	1,503,774

Common shares outstanding at period end		9,230,010			9,213,969			9,179,825			9,174,425			9,179,510

Equity-to-assets ratio (GAAP)		11.34	%		11.04	%		11.10	%		10.91	%		10.74	%
Tangible equity-to-tangible assets ratio (Non-GAAP)		11.26			10.97			11.02			10.83			10.66
Book value per common share (GAAP)	$	17.50		$	17.39		$	17.51		$	17.46		$	17.61
Tangible book value per share (Non-GAAP)		17.37			17.26			17.37			17.32			17.47

Non-GAAP Financial Measures (continued)

	Year Ended December 31,
		2024			2023			2022			2021			2020
	(Dollars in thousands, except per share data)
Tangible equity to tangible assets and tangible book value per share:
Total stockholders’ equity (GAAP)	$	161,555		$	161,660		$	160,360		$	157,879		$	156,302
Less:
Goodwill		889			889			889			889			889
Core deposit intangible		295			419			548			684			824
Tangible equity (Non-GAAP)	$	160,371		$	160,352		$	158,923		$	156,306		$	154,589

Total assets (GAAP)		1,424,889			1,505,082			1,502,916			1,426,329			1,387,669
Less:
Goodwill		889			889			889			889			889
		295			419			548			684			824
Tangible assets (Non-GAAP)	$	1,423,705		$	1,503,774		$	1,501,479		$	1,424,756		$	1,385,956

Common shares outstanding at period end		9,230,010			9,179,510			9,127,595			9,125,759			9,736,875

Equity-to-assets ratio (GAAP)		11.34	%		10.74	%		10.67	%		11.07	%		11.26	%
Tangible equity ratio (Non-GAAP)		11.26			10.66			10.58			10.97			11.15
Book value per common share (GAAP)	$	17.50		$	17.61		$	17.57		$	17.30		$	16.05
Tangible book value per share (Non-GAAP)		17.37			17.47			17.41			17.13			15.88

For more information, contact:
Joseph W. Kiley III, President and Chief Executive Officer
Rich Jacobson, Executive Vice President and Chief Financial Officer
(425) 255-4400

The MIL Network –

January 29, 2025

MIL-OSI: BCB Bancorp, Inc. Earns $3.3 Million in Fourth Quarter 2024; Reports $0.16 EPS and Declares Quarterly Cash Dividend of $0.16 Per Share

Source: GlobeNewswire (MIL-OSI)

BAYONNE, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported net income of $3.3 million for the fourth quarter of 2024, compared to $6.7 million in the third quarter of 2024, and $6.1 million for the fourth quarter of 2023. Earnings per diluted share for the fourth quarter of 2024 were $0.16, compared to $0.36 in the preceding quarter and $0.35 in the fourth quarter of 2023. Net income and earnings per diluted share for the fourth quarter of 2024, without giving effect to the Company’s unrealized losses on equity investments and the loss on sale of non-performing loans, were $4.1 million and $0.24, respectively.

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on February 24, 2025 to common shareholders of record on February 7, 2025.

“We took a number of positive actions during 2024 that have strengthened our balance sheet position. We meaningfully reduced our exposure to wholesale funding and continue to work hard on replacing higher cost funding with core deposits. Additionally, we have strengthened our capital position through positive retained earnings, favorable capital actions and selective loan growth. We have been prudently building up our CECL reserves to address asset quality issues. As we tackle and remediate credit quality issues, we are also positioning the Bank to gradually start lending and booking new business with both existing and new customers,” stated Michael Shriner, President and Chief Executive Officer.

Executive Summary

Total deposits were $2.751 billion at December 31, 2024 compared to $2.725 billion at September 30, 2024.
Net interest margin was 2.53 percent for the fourth quarter of 2024, compared to 2.58 percent for the third quarter of 2024, and 2.57 percent for the fourth quarter of 2023.
- Total yield on interest-earning assets was 5.33 percent for the fourth quarter of 2024 compared to 5.44 percent for the third quarter of 2024, and 5.33 percent for the fourth quarter of 2023.
- Total cost of interest-bearing liabilities was 3.57 percent for the fourth quarter of 2024, compared to 3.62 percent for the third quarter of 2024, and 3.45 percent for the fourth quarter of 2023.
The efficiency ratio for the fourth quarter was 62.1 percent compared to 53.2 percent in the prior quarter, and 61.0 percent in the fourth quarter of 2023.
The annualized return on average assets ratio for the fourth quarter was 0.36 percent, compared to 0.72 percent in the prior quarter, and 0.63 percent in the fourth quarter of 2023.
The annualized return on average equity ratio for the fourth quarter was 4.0 percent, compared to 8.3 percent in the prior quarter, and 7.9 percent in the fourth quarter of 2023.
The provision for credit losses was $4.2 million in the fourth quarter of 2024 compared to $2.9 million for the third quarter of 2024, and $1.9 million for the fourth quarter of 2023.
The allowance for credit losses (“ACL”) as a percentage of total loans was 1.15 percent at December 31, 2024 compared to 1.11 percent at the prior quarter-end and 1.01 percent at December 31, 2023.
Total loans receivable, net of the allowance for credit losses, of $2.996 billion at December 31, 2024, decreased 8.6 percent from $3.280 billion at December 31, 2023.

Balance Sheet Review

Total assets decreased by $233.3 million, or 6.1 percent, to $3.599 billion at December 31, 2024, from $3.832 billion at December 31, 2023. The decrease in total assets was due to a decrease in loans of $283.4 million, offset by an increase of $37.8 million in cash and cash equivalents. The decrease in loans was primarily from loan sales and payoffs/paydowns that exceeded loan originations.

Total cash and cash equivalents increased by $37.8 million, or 13.5 percent, to $317.3 million at December 31, 2024, from $279.5 million at December 31, 2023. The increase was primarily due to loan sales and payoffs/paydowns that exceeded loan originations.

Loans receivable, net, decreased by $283.4 million, or 8.6 percent, to $2.996 billion at December 31, 2024, from $3.280 billion at December 31, 2023. Total loan decreases during the period included decreases of $187.4 million in commercial real estate multi-family loans, $57.4 million in construction loans, $29.4 million in commercial business loans, $8.4 million in residential 1-4 family loans, and $1.4 million in consumer loans. Home equity loans increased $438 thousand. The allowance for credit losses on loans increased $1.2 million to $34.8 million, or 77.8 percent of non-accruing loans and 1.15 percent of gross loans, at December 31, 2024, as compared to an allowance for credit losses on loans of $33.6 million, or 178.9 percent of non-accruing loans and 1.01 percent of gross loans, at December 31, 2023.

Total investment securities increased by $14.3 million, or 14.8 percent, to $111.2 million at December 31, 2024, from $96.9 million at December 31, 2023, as excess liquidity has been deployed into the securities portfolio.

Deposits decreased by $228.2 million, or 7.7 percent, to $2.751 billion at December 31, 2024, from $2.979 billion at December 31, 2023. A majority of the decline was due to a decrease in certificates of deposit of $193.5 million. The reduction in certificates of deposit was mainly caused by the withdrawal of brokered deposits which was partially offset by an increase in retail time deposits.

Total borrowings decreased by $12.1 million to $498.3 million at December 31, 2024 from $510.4 million at December 31, 2023. The decrease in borrowings was primarily due to the maturity of $18.0 million of FHLB debt that was paid off during 2024. The weighted average interest rate of the Company’s outstanding FHLB advances was 4.35 percent at December 31, 2024 and 4.21 percent at December 31, 2023. The weighted average maturity of such FHLB advances as of December 31, 2024 was 0.97 years. The interest rate of the Company’s subordinated debt balances was 9.25 percent at December 31, 2024 and 8.36 percent at December 31, 2023.

Stockholders’ equity increased by $9.9 million, or 3.1 percent, to $323.9 million at December 31, 2024, from $314.1 million at December 31, 2023. The increase was primarily attributable to the increase in retained earnings of $5.9 million, or 4.4 percent, to $141.9 million at December 31, 2024 from $135.9 million at December 31, 2023.

Fourth Quarter 2024 Income Statement Review

Net income was $3.3 million for the quarter ended December 31, 2024 and $6.1 million for the quarter ended December 31, 2023. In the fourth quarter of 2024, the Bank recorded $2.2 million more in loan loss provisioning, and net interest income declined by $1.7 million. Non-interest income was also lower by $2.3 million. Offsetting these declines was a decrease in non-interest expense of $2.2 million. The Bank also recorded $1.3 million less for income tax provisioning.

Net interest income decreased by $1.7 million, or 7.2 percent, to $22.2 million for the fourth quarter of 2024, from $23.9 million for the fourth quarter of 2023. The decrease in net interest income resulted from lower interest income, offset by lower interest expense.

Interest income decreased by $3.1 million, or 6.1 percent, to $46.7 million for the fourth quarter of 2024, from $49.7 million for the fourth quarter of 2023. The average balance of interest-earning assets decreased $226.6 million, or 6.1 percent. The rate of return remained flat at 5.33 percent.

Interest expense declined $1.3 million, to $24.5 million, for the fourth quarter of 2024, from $25.8 million for the fourth quarter of 2023. Average interest-bearing liabilities decreased $247.2 million, or 8.3 percent. The average yield on these liabilities was 3.57 percent, versus 3.45 percent from one year earlier.

The net interest margin was 2.53 percent for the fourth quarter of 2024 compared to 2.57 percent for the fourth quarter of 2023. The decrease in the net interest margin compared to the fourth quarter of 2023 was the result of the increase in the cost of interest-bearing liabilities. The yield on interest earning assets remained the same from one year earlier.

During the fourth quarter of 2024, the Company recognized $4.1 million in net charge-offs compared to $233 thousand in net charge offs for the fourth quarter of 2023. The Bank had non-accrual loans totaling $44.7 million, or 1.48 percent of gross loans, at December 31, 2024 as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $34.8 million, or 1.15 percent of gross loans, at December 31, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The provision for credit losses on loans was $4.2 million for the fourth quarter of 2024 compared to $1.9 million for the fourth quarter of 2023. Management believes that the allowance for credit losses on loans was adequate at December 31, 2024 and December 31, 2023.

Non-interest income decreased by $2.3 million to $938 thousand for the fourth quarter of 2024 from $3.2 million in the fourth quarter of 2023. The decrease in total non-interest income was related to losses on equity investments of $661 thousand in the 2024 quarter as compared to a gain on such investments of $1.1 million in the 2023 quarter, as well as the recordation of a $570 thousand loss on the sale of a non-performing loan during the fourth quarter.

Non-interest expense decreased by $2.2 million, or 13.3 percent, to $14.4 million for the fourth quarter of 2024 from $16.6 million for the fourth quarter of 2023. The decrease in these expenses for the fourth quarter of 2024 was driven by lower salaries and benefits expense, which declined $857 thousand. The fourth quarter of 2023 salaries and benefits included a previously disclosed one-time payment of $1.17 million to a former executive officer. Professional fees, regulatory assessment fees and advertising and promotional costs also declined by $388 thousand, $373 thousand, and $191 thousand, respectively.

The income tax provision decreased by $1.3 million, or 48.4 percent, to $1.3 million for the fourth quarter of 2024. The provision was $2.6 million for the fourth quarter of 2023. The consolidated effective tax rate was 29.0 percent for the fourth quarter of 2024 and 29.9 percent for the fourth quarter of 2023.

Year-to-Date Income Statement Review

Net income decreased by $10.9 million, or 36.8 percent, to $18.6 million for the twelve months of 2024 from $29.5 million for the twelve months of 2023. The decrease in net income was driven, primarily, by lower net interest income of $12.0 million, or 11.6 percent, and an increase in the provision for credit losses by $5.5 million.

Net interest income decreased by $12.0 million, or 11.6 percent, to $92.0 million for the first twelve months of 2024 from $104.1 million for the twelve months of 2023. The decrease in net interest income resulted from an increase in interest expense of $17.7 million, partly offset by an increase in interest income of $5.6 million.

Interest income increased by $5.6 million, or 3.0 percent, to $194.0 million for the twelve months of 2024, from $188.4 million for the twelve months of 2023. The increase was due to an increase of 22 basis points on interest earning assets, from 5.16 percent to 5.38 percent. Offsetting this, somewhat, was a decrease in average interest earning assets of $47.5 million, for the comparable period, which was comprised of a decrease in average loans of $84.8 million offset by an increase in average other interest-earning assets of $37.6 million.

Interest expense increased by $17.7 million, or 21.0 percent, to $102.0 million for 2024, from $84.3 million for 2023. This increase resulted primarily from an increase in the average rate on interest-bearing liabilities of 64 basis points to 3.57 percent for the twelve months of 2024, from 2.93 percent for the twelve months of 2023. Offsetting this was a decrease in average interest bearing liabilities of $18.5 million over the same comparable time period.

Net interest margin was 2.55 percent for the twelve months of 2024, compared to 2.85 percent for the twelve months of 2023. The decrease in the net interest margin compared to the prior period was largely the result of an increase in the cost of the Bank’s interest-bearing liabilities.

During the twelve months of 2024, the Company experienced $10.4 million in net charge offs compared to $704 thousand in net charge offs for the same period in 2023. The provision for credit losses was $11.6 million for the twelve months of 2024 compared to $6.1 million for the same period in 2023.

Non-interest income decreased by $1.1 million to $2.9 million for the twelve months of 2024 from $4.1 million for the twelve months of 2023. The decrease was due to losses on sales of loans of $5.3 million. This was offset by realized and unrealized gains or losses on equity investments, which were $3.7 million greater, and income on Bank-owned Life Insurance (BOLI), which was $883 thousand higher, for the comparable period. The realized and unrealized gains or losses on equity investments are based on prevailing market conditions.

Non-interest expense decreased by $3.5 million, or 5.7 percent, to $57.1 million for the twelve months of 2024 from $60.6 million for the same period in 2023. The decrease in operating expenses for 2024 was driven primarily by decreases in salaries and employee benefits of $2.6 million and advertising and promotional costs of $485 thousand. The 2023 salaries and benefits expense included the payment to a former executive described above.

The income tax provision decreased by $4.3 million, or 36.6 percent to $7.6 million for the twelve months of 2024 from $12.0 million for the same period in 2023. The consolidated effective tax rate was 29.1 percent for the twelve months of 2024 compared to 28.9 percent for the twelve months of 2023.

Asset Quality

During the fourth quarter of 2024, the Company recognized $4.1 million in net charge offs, compared to $233 thousand in net charge offs for the fourth quarter of 2023.

The Bank had non-accrual loans totaling $44.7 million, or 1.48 percent of gross loans, at December 31, 2024, as compared to $18.8 million, or 0.57 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was $34.8 million, or 1.15 percent of gross loans, at December 31, 2024, and $33.6 million, or 1.01 percent of gross loans, at December 31, 2023. The allowance for credit losses on loans was 77.8 percent of non-accrual loans at December 31, 2024, and 178.9 percent of non-accrual loans at December 31, 2023.

About BCB Bancorp, Inc.

BCB Bancorp, Inc. is a New Jersey corporation established in 2003, and is the holding company parent of BCB Community Bank. The Company has not engaged in any significant business activity other than owning all of the outstanding common stock of the Bank. Established in 2000 and headquartered in Bayonne, N.J., the Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-three New Jersey branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four New York branch offices in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

Forward-Looking Statements

This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies 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. We intend 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 are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels and higher interest rates concerns, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, and supply chain disruptions.. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; the impact of any future pandemics or other natural disasters; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, and our other periodic reports that we file with the SEC.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.

The Company provides measurements and ratios based on tangible stockholders’ equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.


	Statements of Income – Three Months Ended,
	December 31, 2024			September 30, 2024		December 31, 2023		Dec 31, 2024 vs. Sept 30, 2024		Dec 31, 2024 vs. Dec 31, 2023
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	41,431		$	42,857	$	43,893	-3.3	%	-5.6	%
Mortgage-backed securities		473			303		293	56.1	%	61.4	%
Other investment securities		978			994		991	-1.6	%	-1.3	%
FHLB stock and other interest-earning assets		3,771			4,472		4,527	-15.7	%	-16.7	%
Total interest and dividend income		46,653			48,626		49,704	-4.1	%	-6.1	%

Interest expense:
Deposits:
Demand		5,866			5,686		5,015	3.2	%	17.0	%
Savings and club		156			146		177	6.8	%	-11.9	%
Certificates of deposit		12,218			13,670		13,308	-10.6	%	-8.2	%
		18,240			19,502		18,500	-6.5	%	-1.4	%
Borrowings		6,219			6,079		7,282	2.3	%	-14.6	%
Total interest expense		24,459			25,581		25,782	-4.4	%	-5.1	%

Net interest income		22,194			23,045		23,922	-3.7	%	-7.2	%
Provision for credit losses		4,154			2,890		1,927	43.7	%	115.6	%

Net interest income after provision for credit losses		18,040			20,155		21,995	-10.5	%	-18.0	%

Non-interest income income (loss) :
Fees and service charges		1,187			1,196		1,445	-0.8	%	-17.9	%
(Loss) gain on sales of loans		(554	)		35		11	-1682.9	%	-5136.4	%
Realized and unrealized gain (loss) on equity investments		(661	)		1,132		1,029	-158.4	%	-164.2	%
Bank-owned life insurance (“BOLI”) income		636			652		597	-2.5	%	6.5	%
Other		330			112		69	194.6	%	378.3	%
Total non-interest income		938			3,127		3,228	-70.0	%	-70.9	%

Non-interest expense:
Salaries and employee benefits		7,117			7,139		7,974	-0.3	%	-10.7	%
Occupancy and equipment		2,483			2,591		2,606	-4.2	%	-4.7	%
Data processing and communications		1,754			1,681		1,721	4.3	%	1.9	%
Professional fees		599			618		987	-3.1	%	-39.3	%
Director fees		269			351		274	-23.4	%	-1.8	%
Regulatory assessment fees		769			666		1,142	15.5	%	-32.7	%
Advertising and promotions		212			182		403	16.5	%	-47.4	%
Other real estate owned, net		–			–		4	0.0	%	-100.0	%
Other		1,164			701		1,457	66.0	%	-20.1	%
Total non-interest expense		14,367			13,929		16,568	3.1	%	-13.3	%

Income before income tax provision		4,611			9,353		8,655	-50.7	%	-46.7	%
Income tax provision		1,339			2,685		2,593	-50.1	%	-48.4	%

Net Income		3,272			6,668		6,062	-50.9	%	-46.0	%
Preferred stock dividends		475			475		182	-0.0	%	160.7	%
Net Income available to common stockholders	$	2,797		$	6,193	$	5,880	-54.8	%	-52.4	%

Net Income per common share-basic and diluted
Basic	$	0.16		$	0.36	$	0.35	-54.9	%	-52.9	%
Diluted	$	0.16		$	0.36	$	0.35	-54.9	%	-53.0	%

Weighted average number of common shares outstanding
Basic		17,056			17,039		16,876	0.1	%	1.1	%
Diluted		17,108			17,064		16,884	0.3	%	1.3	%

	Statements of Income – Twelve Months Ended,
	December 31, 2024			December 31, 2023			Dec 31, 2024 vs. Dec 31, 2023
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	172,046		$	169,559		1.5	%
Mortgage-backed securities		1,378			880		56.6	%
Other investment securities		3,953			4,226		-6.5	%
FHLB stock and other interest-earning assets		16,632			13,695		21.4	%
Total interest and dividend income		194,009			188,360		3.0	%

Interest expense:
Deposits:
Demand		22,158			16,915		31.0	%
Savings and club		620			620		0.0	%
Certificates of deposit		55,442			39,157		41.6	%
		78,220			56,692		38.0	%
Borrowings		23,768			27,606		-13.9	%
Total interest expense		101,988			84,298		21.0	%

Net interest income		92,021			104,062		-11.6	%
Provision for credit losses		11,570			6,104		89.5	%

Net interest income after provision for credit losses		80,451			97,958		-17.9	%

Non-interest income:
Fees and service charges		4,717			5,334		-11.6	%
(Loss) gain on sales of loans		(5,325	)		36		-14891.7	%
Realized and unrealized gain (loss) on equity investments		379			(3,361	)	-111.3	%
Bank-owned life insurance (“BOLI”) income		2,634			1,751		50.4	%
Other		535			251		113.1	%
Total non-interest income		2,940			4,088		-28.1	%

Non-interest expense:
Salaries and employee benefits		28,229			30,827		-8.4	%
Occupancy and equipment		10,247			10,340		-0.9	%
Data processing and communications		6,960			6,968		-0.1	%
Professional fees		2,416			2,735		-11.7	%
Director fees		1,151			1,083		6.3	%
Regulatory assessments		3,530			3,585		-1.5	%
Advertising and promotions		863			1,348		-36.0	%
Other real estate owned, net		–			7		-100.0	%
Other		3,725			3,698		0.7	%
Total non-interest expense		57,121			60,591		-5.7	%

Income before income tax provision		26,270			41,455		-36.6	%
Income tax provision		7,647			11,972		-36.1	%

Net Income		18,623			29,483		-36.8	%
Preferred stock dividends		1,832			702		160.9	%
Net Income available to common stockholders	$	16,791		$	28,781		-41.7	%

Net Income per common share-basic and diluted
Basic	$	0.99		$	1.71		-42.1	%
Diluted	$	0.99		$	1.70		-42.0	%

Weighted average number of common shares outstanding
Basic		17,007			16,870		0.8	%
Diluted		17,018			16,932		0.5	%

Statements of Financial Condition	December 31, 2024			September 30, 2024			December 31, 2023			Dec 31, 2024 vs. Sept 30, 2024		Dec 31, 2024 vs. Dec 31, 2023
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	14,075		$	12,617		$	16,597		11.6	%	-15.2	%
Interest-earning deposits		303,207			230,506			262,926		31.5	%	15.3	%
Total cash and cash equivalents		317,282			243,123			279,523		30.5	%	13.5	%

Interest-earning time deposits		735			735			735		–		–
Debt securities available for sale		101,717			98,169			87,769		3.6	%	15.9	%
Equity investments		9,472			10,133			9,093		-6.5	%	4.2	%
Loans held for sale		–			250			1,287		-100.0	%	-100.0	%
Loans receivable, net of allowance for credit losses on loans of $34,789, $34,693 and $33,608, respectively		2,996,259			3,087,914			3,279,708		-3.0	%	-8.6	%
Federal Home Loan Bank of New York (“FHLB”) stock, at cost		24,272			24,732			24,917		-1.9	%	-2.6	%
Premises and equipment, net		12,569			12,008			13,057		4.7	%	-3.7	%
Accrued interest receivable		15,176			16,496			16,072		-8.0	%	-5.6	%
Deferred income taxes		17,181			17,370			18,213		-1.1	%	-5.7	%
Goodwill and other intangibles		5,253			5,253			5,253		0.0	%	0.0	%
Operating lease right-of-use asset		12,686			13,438			12,935		-5.6	%	-1.9	%
Bank-owned life insurance (“BOLI”)		76,040			75,404			73,407		0.8	%	3.6	%
Other assets		10,476			8,745			10,428		19.8	%	0.5	%
Total Assets	$	3,599,118		$	3,613,770		$	3,832,397		-0.4	%	-6.1	%

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES
Non-interest bearing deposits	$	520,387		$	528,089		$	536,264		-1.5	%	-3.0	%
Interest bearing deposits		2,230,471			2,196,491			2,442,816		1.5	%	-8.7	%
Total deposits		2,750,858			2,724,580			2,979,080		1.0	%	-7.7	%
FHLB advances		455,361			466,424			472,811		-2.4	%	-3.7	%
Subordinated debentures		42,961			67,042			37,624		-35.9	%	14.2	%
Operating lease liability		13,139			13,878			13,315		-5.3	%	-1.3	%
Other liabilities		12,874			13,733			15,512		-6.3	%	-17.0	%
Total Liabilities		3,275,193			3,285,657			3,518,342		-0.3	%	-6.9	%

STOCKHOLDERS’ EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		–			–			–		–		–
Additional paid-in capital preferred stock		24,723			29,763			25,043		-16.9	%	-1.3	%
Common stock: no par value, 40,000 shares authorized		–			–			–		0.0	%	0.0	%
Additional paid-in capital common stock		200,935			200,605			198,923		0.2	%	1.0	%
Retained earnings		141,853			141,770			135,927		0.1	%	4.4	%
Accumulated other comprehensive loss		(5,239	)		(5,678	)		(7,491	)	-7.7	%	-30.1	%
Treasury stock, at cost		(38,347	)		(38,347	)		(38,347	)	0.0	%	0.0	%
Total Stockholders’ Equity		323,925			328,113			314,055		-1.3	%	3.1	%

Total Liabilities and Stockholders’ Equity	$	3,599,118		$	3,613,770		$	3,832,397		-0.4	%	-6.1	%

Outstanding common shares		17,063			17,048			16,904

	Three Months Ended December 31,
		2024						2023
	Average Balance		Interest Earned/Paid		Average Yield/Rate (3)		Average Balance		Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable⁽⁴⁾⁽⁵⁾	$	3,081,846	$	41,431	5.38	%	$	3,311,946	$	43,893	5.30	%
Investment Securities		110,447		1,451	5.26	%		93,638		1,284	5.48	%
Other Interest-earning assets⁽⁶⁾		309,804		3,771	4.87	%		323,064		4,527	5.61	%
Total Interest-earning assets		3,502,097		46,653	5.33	%		3,728,648		49,704	5.33	%
Non-interest-earning assets		124,554						124,809
Total assets	$	3,626,651					$	3,853,457
Interest-bearing liabilities:
Interest-bearing demand accounts	$	551,971	$	2,682	1.94	%	$	578,890	$	2,184	1.51	%
Money market accounts		380,136		3,184	3.35	%		359,366		2,832	3.15	%
Savings accounts		254,093		156	0.25	%		288,108		177	0.25	%
Certificates of Deposit		1,048,341		12,218	4.66	%		1,140,656		13,307	4.67	%
Total interest-bearing deposits		2,234,541		18,240	3.27	%		2,367,020		18,500	3.13	%
Borrowed funds		508,113		6,219	4.90	%		622,860		7,282	4.68	%
Total interest-bearing liabilities		2,742,654		24,459	3.57	%		2,989,880		25,782	3.45	%
Non-interest-bearing liabilities		560,345						557,156
Total liabilities		3,302,999						3,547,036
Stockholders’ equity		323,652						306,420
Total liabilities and stockholders’ equity	$	3,626,651					$	3,853,457
Net interest income			$	22,194					$	23,922
Net interest rate spread⁽¹⁾					1.76	%					1.88	%
Net interest margin⁽²⁾					2.53	%					2.57	%

^{(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.}
^{(2) Net interest margin represents net interest income divided by average total interest-earning assets.}
^{(3) Annualized.}
^{(4) Excludes allowance for credit losses.}
^{(5) Includes non-accrual loans.}
^{(6) Includes Federal Home Loan Bank of New York Stock.}

	Year Ended December 31,
		2024						2023
	Average Balance		Interest Earned/Paid		Average Yield/Rate (3)		Average Balance		Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable⁽⁴⁾⁽⁵⁾	$	3,196,538	$	172,046	5.38	%	$	3,281,334	$	169,559	5.17	%
Investment Securities		99,733		5,331	5.35	%		100,000		5,106	5.11	%
Other interest-earning assets⁽⁶⁾		308,248		16,632	5.40	%		270,659		13,695	5.06	%
Total Interest-earning assets		3,604,519		194,009	5.38	%		3,651,993		188,360	5.16	%
Non-interest-earning assets		124,441						123,652
Total assets	$	3,728,960					$	3,775,645
Interest-bearing liabilities:
Interest-bearing demand accounts	$	553,013	$	9,701	1.75	%	$	658,023	$	8,426	1.28	%
Money market accounts		372,205		12,457	3.35	%		334,353		8,489	2.54	%
Savings accounts		264,430		620	0.23	%		305,778		620	0.20	%
Certificates of Deposit		1,153,235		55,442	4.81	%		980,617		39,157	3.99	%
Total interest-bearing deposits		2,342,883		78,220	3.34	%		2,278,771		56,692	2.49	%
Borrowed funds		511,916		23,768	4.64	%		594,564		27,606	4.64	%
Total interest-bearing liabilities		2,854,799		101,988	3.57	%		2,873,335		84,298	2.93	%
Non-interest-bearing liabilities		554,037						602,691
Total liabilities		3,408,836						3,476,026
Stockholders’ equity		320,124						299,618
Total liabilities and stockholders’ equity	$	3,728,960					$	3,775,644
Net interest income			$	92,021					$	104,062
Net interest rate spread⁽¹⁾					1.81	%					2.22	%
Net interest margin⁽²⁾					2.55	%					2.85	%

^{(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.}
^{(2) Net interest margin represents net interest income divided by average total interest-earning assets.}
^{(3) Annualized.}
^{(4) Excludes allowance for credit losses.}
^{(5) Includes non-accrual loans.}
^{(6) Includes Federal Home Loan Bank of New York Stock.}

	Financial Condition data by quarter
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023

	(In thousands, except book values)
Total assets	$	3,599,118		$	3,613,770		$	3,793,941		$	3,849,195		$	3,832,397
Cash and cash equivalents		317,282			243,123			326,870			352,448			279,523
Securities		111,189			108,302			94,965			96,189			96,862
Loans receivable, net		2,996,259			3,087,914			3,161,925			3,226,877			3,279,708
Deposits		2,750,858			2,724,580			2,935,239			2,991,659			2,979,080
Borrowings		498,322			533,466			510,710			510,573			510,435
Stockholders’ equity		323,925			328,113			320,732			320,131			314,055
Book value per common share¹	$	17.54		$	17.50		$	17.17		$	17.24		$	17.10
Tangible book value per common share²	$	17.23		$	17.19		$	16.86		$	16.93		$	16.79

	Operating data by quarter
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
	(In thousands, except for per share amounts)
Net interest income	$	22,194		$	23,045		$	23,639		$	23,143		$	23,922
Provision for credit losses		4,154			2,890			2,438			2,088			1,927
Non-interest income (loss)		938			3,127			(3,234	)		2,109			3,228
Non-interest expense		14,367			13,929			13,987			14,838			16,568
Income tax expense		1,339			2,685			1,163			2,460			2,593
Net income	$	3,272		$	6,668		$	2,817		$	5,866		$	6,062
Net income per diluted share	$	0.16		$	0.36		$	0.14		$	0.32		$	0.35
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16

	Financial Ratios(3)
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
Return on average assets		0.36	%		0.72	%		0.30	%		0.61	%		0.63	%
Return on average stockholders’ equity		4.04	%		8.29	%		3.52	%		7.46	%		7.91	%
Net interest margin		2.53	%		2.58	%		2.60	%		2.50	%		2.57	%
Stockholders’ equity to total assets		9.00	%		9.08	%		8.45	%		8.32	%		8.19	%
Efficiency Ratio⁴		62.11	%		53.22	%		68.55	%		58.76	%		61.02	%

	Asset Quality Ratios
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
	(In thousands, except for ratio %)
Non-Accrual Loans	$	44,708		$	35,330		$	32,448		$	22,241		$	18,783
Non-Accrual Loans as a % of Total Loans		1.48	%		1.13	%		1.01	%		0.68	%		0.57	%
ACL as % of Non-Accrual Loans		77.8	%		98.2	%		108.6	%		155.4	%		178.9	%
Individually Analyzed Loans		83,399			66,048			60,798			65,731			54,019
Classified Loans		152,714			98,316			87,033			97,739			85,727

^{(1) Calculated by dividing stockholders’ equity, less preferred equity, to shares outstanding.}
^{(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”}
^{(3) Ratios are presented on an annualized basis, where appropriate.}
^{(4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”}

	Recorded Investment in Loans Receivable by quarter
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
	(In thousands)
Residential one-to-four family	$	239,870		$	241,050		$	242,706		$	244,762		$	248,295
Commercial and multi-family		2,246,677			2,296,886			2,340,385			2,392,970			2,434,115
Construction		135,434			146,471			173,207			180,975			192,816
Commercial business		342,799			371,365			375,355			378,073			372,202
Home equity		66,769			67,566			66,843			65,518			66,331
Consumer		2,235			2,309			2,053			2,847			3,643
	$	3,033,784		$	3,125,647		$	3,200,549		$	3,265,145		$	3,317,402
Less:
Deferred loan fees, net		(2,736	)		(3,040	)		(3,381	)		(3,705	)		(4,086	)
Allowance for credit losses		(34,789	)		(34,693	)		(35,243	)		(34,563	)		(33,608	)

Total loans, net	$	2,996,259		$	3,087,914		$	3,161,925		$	3,226,877		$	3,279,708

	Non-Accruing Loans in Portfolio by quarter
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
	(In thousands)
Residential one-to-four family	$	1,387		$	410		$	350		$	429		$	270
Commercial and multi-family		32,973			27,693			27,796			12,627			8,684
Construction		586			586			586			3,225			4,292
Commercial business		10,530			6,498			3,673			5,916			5,491
Home equity		231			123			43			44			46
Consumer		–			20			–			–			–
Total:	$	45,707		$	35,330		$	32,448		$	22,241		$	18,783

	Distribution of Deposits by quarter
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
	(In thousands)
Demand:
Non-Interest Bearing	$	520,387		$	528,089		$	523,816		$	531,112		$	536,264
Interest Bearing		553,731			527,862			549,239			552,295			564,912
Money Market		395,004			366,655			371,689			361,791			370,934
Sub-total:	$	1,469,122		$	1,422,606		$	1,444,744		$	1,445,198		$	1,472,110
Savings and Club		252,491			255,115			258,680			272,051			284,273
Certificates of Deposit		1,029,245			1,046,859			1,231,815			1,274,410			1,222,697
Total Deposits:	$	2,750,858		$	2,724,580		$	2,935,239		$	2,991,659		$	2,979,080

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter

	Tangible Book Value per Share
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
	(In thousands, except per share amounts)
Total Stockholders’ Equity	$	323,925		$	328,113		$	320,732		$	320,131		$	314,055
Less: goodwill		5,253			5,253			5,253			5,253			5,253
Less: preferred stock		24,723			29,763			28,403			27,733			25,043
Total tangible common stockholders’ equity		293,949			293,097			287,076			287,145			283,759
Shares common shares outstanding		17,063			17,048			17,029			16,957			16,904
Book value per common share	$	17.54		$	17.50		$	17.17		$	17.24		$	17.10
Tangible book value per common share	$	17.23		$	17.19		$	16.86		$	16.93		$	16.79

	Efficiency Ratios
	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
	(In thousands, except for ratio %)
Net interest income	$	22,194		$	23,045		$	23,639		$	23,143		$	23,922
Non-interest income (loss)		938			3,127			(3,234	)		2,109			3,228
Total income		23,132			26,172			20,405			25,252			27,150
Non-interest expense		14,367			13,929			13,987			14,838			16,568
Efficiency Ratio		62.11	%		53.22	%		68.55	%		58.76	%		61.02	%

CONTACT:	MICHAEL SHRINER,
	PRESIDENT & CEO
	JAWAD CHAUDHRY,
	EVP & CFO
	(201) 823-0700

The MIL Network –

January 29, 2025

MIL-OSI: HomeTrust Announces the Sale of Knoxville Branches to Apex Bank

Source: GlobeNewswire (MIL-OSI)

ASHEVILLE, N.C. and CAMDEN, Tenn., Jan. 28, 2025 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NASDAQ: HTBI) (“Company”), the holding company of HomeTrust Bank (“HomeTrust”), and Apex Bank (“Apex”) today announced that HomeTrust and Apex have entered into a definitive purchase and assumption agreement (the “agreement”) under which Apex will acquire HomeTrust’s two branches in Knoxville, Tennessee. Under the terms of the agreement, Apex will acquire the physical locations, related fixed assets, and substantially all the customer deposit accounts which are currently estimated at $42 million. HomeTrust will retain the loan accounts associated with the branches.

“This transaction aligns with our strategic plan to tighten our geographic footprint, improve our branch efficiencies, and allocate our capital to support our long-term growth in other core markets,” said Hunter Westbrook, HomeTrust’s President and Chief Executive Officer.

Matt Daniels, President and CEO of Apex Bank said, “Being locally owned and operated, we are excited to expand our footprint in Knoxville. This investment will allow us to better serve customers and support the community. We will continue to look for opportunities to expand our presence in the area and remain committed to providing personalized financial solutions that help individuals and businesses thrive.”

The proposed transaction, which is subject to customary closing conditions, including approval by applicable regulatory authorities, is currently anticipated to close in the second quarter of 2025.

Piper Sandler & Co. served as HomeTrust’s financial advisor for the transaction, while Silver, Freedman Taff & Tiernan LLP provided legal counsel. Baker Donelson provided legal counsel for Apex.

About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for HomeTrust Bank. As of December 31, 2024, the Company had assets of $4.6 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (the Asheville metropolitan area, the “Piedmont” region, Charlotte, and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville, and Morristown), Southwest Virginia (Roanoke Valley) and Georgia (Greater Atlanta).

About Apex Bank
Apex Bank was founded in 1931 and is headquartered in Knoxville, Tennessee. Apex Bank has experienced tremendous growth since 2008, increasing total assets from $157 million to over $1.35 billion in 2025. The bank currently has 20 retail locations and a Knoxville-based national mortgage servicing center. Apex Bank has consistently been ranked as one of the best-performing community banks in the nation for the past 16 years, including the award of Tennessee’s Top Community Bank from Independent Community Bankers of America and other leading rankings in the financial industry.

Forward-Looking Statements
This press release may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to, the impact of bank failures or adverse developments involving other banks and related negative press about the banking industry in general on investor and depositor sentiment; the remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health, both nationally and in the Company’s market areas; natural disasters, including the effects of Hurricane Helene; expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission – which are available on the Company’s website at www.htb.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

www.htb.com
www.apexbank.com

The MIL Network –

January 29, 2025

MIL-OSI: Auburn National Bancorporation, Inc. Reports Fourth Quarter and Full Year Results

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024 Highlights:

Net interest margin (tax-equivalent) improved 44 basis points to 3.09%, compared to 4Q 2023

Net interest income (tax-equivalent) increased 14% compared to 4Q 2023

Average loans increased 3% compared to 4Q 2023

Nonperforming assets were $0.5 million or 0.05% of total assets at December 31, 2024

AUBURN, Ala., Jan. 28, 2025 (GLOBE NEWSWIRE) — Auburn National Bancorporation (Nasdaq: AUBN) reported net income of $1.6 million, or $0.45 per share, for the fourth quarter of 2024, compared to $1.7 million, or $0.50 per share, for the third quarter of 2024, and a net loss of $(4.0) million, or $(1.14) per share, for the fourth quarter of 2023. The net loss for the fourth quarter of 2023 reflected the sale of $117.6 million of available-for-sale securities for an after-tax loss of $(4.7) million, or $(1.35) per share related to the Company’s balance sheet repositioning strategy. Excluding this non-routine item, net earnings for the fourth quarter of 2023 would have been $0.7 million, or $0.21 per share.

For the full year 2024, the Company reported net earnings of $6.4 million, or $1.83 per share, compared to $1.4 million, or $0.40 per share, for 2023. Excluding the loss on sale of securities related to the balance sheet repositioning strategy during 2023, described above, net earnings for the full year 2023 would have been $6.1 million, or $1.75 per share.

“Our fourth quarter and full year results reflect solid revenue growth, strong asset quality, and controlled expenses,” said David A. Hedges, President and CEO. “Except for the first quarter of 2024, following the balance sheet repositioning, our quarterly cost of deposits decreased for the first time since the third quarter of 2022. We remain optimistic that our net interest margin will continue to improve in 2025 as recent cuts in the federal funds rate should reduce our cost of deposits and still allow our earning asset yields to improve as loans and securities re-price. While the interest rate environment remains challenging for the banking industry, our capital and liquidity are strong and we are well positioned to meet the needs of our customers,” said Mr. Hedges.

Net interest income (tax-equivalent) was $7.0 million for the fourth quarter of 2024, compared to $6.8 million in the third quarter of 2024, and $6.2 million for the fourth quarter of 2023. The increase in net interest income was primarily due to improved net interest margin.

Net interest margin (tax-equivalent) was 3.09% in the fourth quarter of 2024, compared to 3.05% in the third quarter of 2024, and 2.65% in the fourth quarter of 2023. The increase in net interest margin compared to the fourth quarter of 2023 was primarily due to loan growth and the balance sheet repositioning strategy mentioned above, which resulted in a more favorable asset mix and higher yields on interest-earning assets in 2024. Average loans for the fourth quarter of 2024 were $567.6 million, a 3% increase from the fourth quarter of 2023.

Nonperforming assets were $0.5 million, or 0.05% of total assets, at December 31, 2024, compared to $0.8 million, or 0.08% of total assets at September 30, 2024, and $0.9 million, or 0.09% of total assets, at December 31, 2023.

The Company recorded a negative provision for credit losses of $(48) thousand in the fourth quarter of 2024, compared to a negative provision for credit losses of $(127) thousand in the third quarter of 2024, and a provision for credit losses of $326 thousand in the fourth quarter of 2023.

At December 31, 2024 and September 30, 2024, the Company’s allowance for credit losses was $6.9 million, or 1.22% of total loans, compared to $6.9 million, or 1.23% of total loans at December 31, 2023. Although the balance of the allowance for credit losses was largely unchanged, the decrease in the allowance for credit losses as a percentage of total loans was primarily due to improved economic forecasts.

Noninterest income was $0.8 million for both the fourth and third quarters of 2024, compared to a loss of $5.4 million in the fourth quarter of 2023. Excluding the pre-tax securities loss of $6.3 million related to the balance sheet repositioning strategy in 2023, noninterest income would have been $0.9 million for the fourth quarter of 2023.

Noninterest expense was $5.5 million in both the fourth and third quarters of 2024, compared to $5.8 million for the fourth quarter of 2023. The decrease in noninterest expense compared to the fourth quarter of 2023 was primarily related to decreases in salaries and benefits expense, net occupancy and equipment expense, and professional fees expense.

The provision for income tax expense was $0.8 million for the fourth quarter of 2024, compared to income tax expense of $0.5 million for the third quarter of 2024, and an income tax benefit of $(1.5) million for the fourth quarter of 2023.

The effective tax rate for the fourth quarter of 2024 was 34.73%, compared to 23.46% for the third quarter of 2024, and an effective tax rate of (27.53)% for the fourth quarter of 2023. The increase in the effective tax rate compared to the fourth quarter of 2023 was primarily due to an increase in pre-tax earnings in 2024 resulting from our balance sheet repositioning and the pre-tax loss incurred in the fourth quarter of 2023 from selling securities in such balance sheet repositioning. Also, the provision for income tax expense and the effective tax rates for the fourth and third quarters of 2024 included discrete tax items associated with provision to return adjustments in conjunction with the final 2023 tax return filing and the resolution of state examination activities, which resulted in additional tax expense. Excluding these discrete items, the effective tax rate for the fourth and third quarters of 2024, would have been 21.55% and 18.96%, respectively. The Company’s effective income tax rate otherwise is principally affected by tax-exempt earnings from the Company’s investments in municipal securities, bank-owned life insurance, and New Markets Tax Credits.

Total assets were $977.3 million at December 31, 2024, compared to $990.1 million at September 30, 2024 and $975.3 million at December 31, 2023. Loans, net of unearned income were $564.0 million at December 31, 2024, compared to $565.7 million at September 30, 2024 and $557.3 million at December 31, 2023. Growth in construction and land development loans since December 31, 2023 was partially offset by paydowns in commercial and industrial loans. Total deposits were $895.8 million at December 31, 2024, compared to $901.7 million at September 30, 2024 and $896.2 million at December 31, 2023. At December 31, 2024, the Company had $74.1 million of reciprocal deposits sold off-balance sheet, compared to $37.8 million at September 30, 2024, and $59.0 million at December 31, 2023. The Company had no brokered deposits, FHLB advances or other wholesale borrowings outstanding at December 31, 2024, September 30, 2024, or December 31, 2023.

At December 31, 2024, the Company’s consolidated stockholders’ equity (book value) was $78.3 million, or $22.41 per share, compared to $84.3 million, or $24.14 per share, and $76.5 million, or $21.90 per share, at December 31, 2023. The decrease from September 30, 2024 was primarily driven by other comprehensive losses of $6.7 million due to higher market interest rates that led to an increase in unrealized losses on securities available-for-sale, net of tax, and cash dividends paid of $1.0 million, partially offset by net earnings of $1.6 million during the fourth quarter of 2024. The increase from December 31, 2023 was primarily driven by net earnings of $6.4 million, which was partially offset by cash dividends paid of $3.8 million, other comprehensive losses of $0.6 million related to unrealized gains/losses on securities available-for-sale, net of tax, and a $0.3 million one-time charge for the cumulative effect to adopt a new accounting standard on January 1, 2024. Unrealized losses on securities do not affect the Bank’s capital for regulatory capital purposes.

The Company’s tangible common equity (“TCE”) ratio or total equity to total assets ratio was 8.01% at December 31, 2024, compared to 8.52% at September 30, 2024, and 7.84% at December 31, 2023. All of the Company’s marketable securities are classified as available-for-sale. Therefore, any changes in the fair value of the Company’s securities portfolio are reflected in total equity, net of tax, under generally accepted accounting principles.

The Company paid cash dividends of $0.27 per share in the fourth quarter of 2024. At December 31, 2024, the Bank’s regulatory capital ratios were well above the minimum amounts required to be “well capitalized” under current regulatory standards.

About Auburn National Bancorporation, Inc.

Auburn National Bancorporation, Inc. (the “Company”) is the parent company of AuburnBank (the “Bank”), with total assets of approximately $977 million. The Bank is an Alabama state-chartered bank that is a member of the Federal Reserve System, which has operated continuously since 1907. Both the Company and the Bank are headquartered in Auburn, Alabama. The Bank conducts its business in East Alabama, including Lee County and surrounding areas. The Bank operates seven full-service branches in Auburn, Opelika, Valley, and Notasulga, Alabama. The Bank also operates a loan production office in Phenix City, Alabama. Additional information about the Company and the Bank may be found by visiting www.auburnbank.com.

Cautionary Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, costs and revenues, the continuing effects of the COVID-19 pandemic and related government, Federal Reserve monetary and regulatory actions, including the remaining effects of pandemic-related economic stimulus and economic conditions generally and in our markets, loan demand, mortgage lending activity, changes in the mix of our earning assets (including those generating tax exempt income or tax credits) and our mix and cost of deposits and wholesale liabilities, net interest income and margin, yields on earning assets, the market values and performance of securities held, effects of inflation, including Federal Reserve monetary policies which were tightened in response to inflation beginning in 2022 through increases in the target federal funds rate and reductions in the Federal Reserve’s Treasury and mortgage-backed securities (MBS) holdings, and more recent monetary loosening through increased reinvestment of maturing Treasury securities and reinvestment in agency debt and MBS in Treasury securities beginning in June 2024 and beginning September 17, 2024, three reductions in the target federal funds rate totaling 100 basis points to a current target of 4.25-4.50%, changes in the shape of the yield curve, interest rates (generally and those applicable to our assets and liabilities) and changes in our asset values, especially investment securities, as a result of monetary policies and interest rate changes, noninterest income, loan performance, loan deferrals and modifications, nonperforming assets, other real estate owned, provision for credit losses, including the continuing effects of the application of the new CECL accounting standard adopted on January 1, 2023 and our CECL models, including possible adjustments to the fair values of securities available for sale in lieu of other-than-temporary impairments, charge-offs, collateral values, credit quality, asset sales, insurance claims, and market trends, as well as statements with respect to our objectives, expectations and intentions and other statements that are not historical facts. Actual results may differ from those set forth in the forward-looking statements.

Forward-looking statements, with respect to our beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions, involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, achievements, or financial condition of the Company or the Bank to be materially different from future results, performance, achievements, or financial condition expressed or implied by such forward-looking statements. You should not expect us to update any forward-looking statements.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, together with those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2023 and otherwise in our other SEC reports and filings.

Explanation of Certain Unaudited Non-GAAP Financial Measures

This press release contains financial information determined by methods other than U.S. generally accepted accounting principles (“GAAP”). The attached financial highlights include certain designated net interest income amounts presented on a tax-equivalent basis, a non-GAAP financial measure, and the presentation and calculation of the efficiency ratio, a non-GAAP measure. Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes the presentation of net interest income on a tax-equivalent basis provides comparability of net interest income from both taxable and tax-exempt sources and facilitates comparability within the industry. Similarly, the efficiency ratio is a common measure that facilitates comparability with other financial institutions. Although the Company believes these non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. Along with the attached financial highlights, the Company provides reconciliations between the GAAP financial measures and these non-GAAP financial measures.

For additional information, contact:
David A. Hedges
President and CEO
(334) 821-9200

Financial Highlights (unaudited)
			Quarter ended												Year ended December 31,
(Dollars in thousands, except per share amounts)				December 31, 2024				September 30, 2024				December 31, 2023				2024				2023
Results of Operations
Net interest income (a)			$	6,988			$	6,811			$	6,154			$	27,204			$	26,745
Less: tax-equivalent adjustment				19				21				95				79				417
	Net interest income (GAAP)			6,969				6,790				6,059				27,125				26,328
Noninterest income				845				846				(5,429	)			3,474				(2,981	)
	Total revenue			7,814				7,636				630				30,599				23,347
Provision for credit losses				(48	)			(127	)			326				36				135
Noninterest expense				5,472				5,500				5,803				22,166				22,594
Income tax expense (benefit)				830				531				(1,514	)			2,000				(777	)
Net earnings (loss)			$	1,560			$	1,732			$	(3,985	)		$	6,397			$	1,395

Per share data:
Basic and diluted net earnings (loss):			$	0.45			$	0.50			$	(1.14	)		$	1.83			$	0.40
Cash dividends declared			$	0.27			$	0.27			$	0.27			$	1.08			$	1.08
Weighted average shares outstanding:				3,493,699				3,493,699				3,493,614				3,493,690				3,498,030
Shares outstanding, at period end				3,493,699				3,493,699				3,493,614				3,493,699				3,493,614
Book value			$	22.41			$	24.14			$	21.90			$	22.41			$	21.90
Common stock price:
	High		$	24.57			$	24.35			$	21.99			$	24.57			$	24.50
	Low			20.06				17.50				19.72				16.63				18.80
	Period-end		$	23.49			$	22.90			$	21.28			$	23.49			$	21.28
		To earnings ratio (c)		12.77		x		91.60		x		53.20		x		12.84		x		53.20		x
		To book value		105		%		95		%		97		%		105		%		97		%
Performance ratios:
Return on average equity (annualized):				7.49		%		9.10		%		(26.40	)	%		8.21		%		2.05		%
Return on average assets (annualized):				0.63		%		0.71		%		(1.56	)	%		0.65		%		0.14		%
Dividend payout ratio				60.00		%		54.00		%		(23.68	)	%		59.02		%		270.00		%
Other financial data:
Net interest margin (a)				3.09		%		3.05		%		2.65		%		3.06		%		2.89		%
Effective income tax rate				34.73		%		23.46		%		(27.53	)	%		23.82		%		(125.73	)	%
Efficiency ratio (b)				69.86		%		71.83		%		800.41		%		72.25		%		95.08		%
Asset Quality:
Nonperforming assets:
	Nonperforming (nonaccrual) loans		$	503			$	775			$	911			$	503			$	911
		Total nonperforming assets	$	503			$	775			$	911			$	503			$	911

Net (recoveries) charge-offs			$	(16	)		$	60			$	173			$	(14	)		$	46
Allowance for credit losses as a % of:
	Loans			1.22		%		1.22		%		1.23		%		1.22		%		1.23		%
	Nonperforming loans			1,366		%		887		%		753		%		1,366		%		753		%
Nonperforming assets as a % of:
	Loans and other real estate owned			0.09		%		0.14		%		0.16		%		0.09		%		0.16		%
	Total assets			0.05		%		0.08		%		0.09		%		0.05		%		0.09		%
Nonperforming loans as a % of total loans				0.09		%		0.14		%		0.16		%		0.09		%		0.16		%
Net (recoveries) charge-offs
as a % of average loans				(0.01	)	%		0.04		%		0.13		%		—		%		0.01		%

Selected average balances:
Securities			$	255,168			$	251,723			$	354,065			$	258,155			$	387,488
Loans, net of unearned income				567,634				571,651				550,938				568,378				523,838
Total assets				991,275				982,656				1,020,476				982,268				1,021,808
Total deposits				904,605				904,860				953,674				902,429				946,791
Total stockholders’ equity				83,325				76,113				60,372				77,921				68,066
Selected period end balances:
Securities			$	243,012			$	258,285			$	270,910			$	243,012			$	270,910
Loans, net of unearned income				564,017				565,699				557,294				564,017				557,294
Allowance for credit losses				6,871				6,876				6,863				6,871				6,863
Total assets				977,324				990,143				975,255				977,324				975,255
Total deposits				895,824				901,724				896,243				895,824				896,243
Total stockholders’ equity				78,292				84,336				76,507				78,292				76,507

(a) Tax equivalent. See “Explanation of Certain Unaudited Non-GAAP Financial Measures” and “Reconciliation of
	GAAP to non-GAAP Measures (unaudited).”
(b) Efficiency ratio is the result of noninterest expense divided by the sum of noninterest income and tax-equivalent
	net interest income. See “Reconciliation of GAAP to non-GAAP Measures (unaudited)” below.
(c) Calculated by dividing period end share price by earnings per share for the previous four quarters.

Reconciliation of GAAP to non-GAAP Measures (unaudited):

Quarter ended December 31,

Years ended December 31,

(Dollars in thousands, except per share amounts)

2023

2022

2023

2022

Net interest income, as reported (GAAP)

$

6,059

$

7,471

$

26,328

$

27,166

Tax-equivalent adjustment

95

117

417

456

Net interest income (tax-equivalent)

$

6,154

$

7,588

$

26,745

$

27,622

The MIL Network –

January 29, 2025

MIL-OSI: Angus Gold Extends New High-Gold Zone at Dorset West, Intersects 3.2 g/t Au over 13.7 metres including 16.2 g/t Au over 2.0 metres, Golden Sky Project, Wawa

Source: GlobeNewswire (MIL-OSI)

TORONTO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Angus Gold Inc. (TSX-V: GUS | OTC: ANGVF) (“Angus” or the “Company”) is pleased to announce assay results from eleven (11) exploration holes that were completed on the Dorset Zone as part of its 2024 Fall drilling program at the Golden Sky Project in Wawa, Ontario. The new high-grade gold zone on Dorset’s west end, where Angus previously intersected 7.0 g/t Au over 12.4 metres in Hole GS-24-136, approximately 500 metres to the west of the historical Dorset resource (see News Release of May 7, 2024), is now defined over 100 metres of strike length. In addition, with these drilling results, the Dorset Gold Zone has now been intersected along 2 kilometres of strike length.

Highlights:

High-Grade Dorset West gold mineralization is now defined over 100m of strike length:
- 13.7 metres of mineralization grading 3.2 g/t Au, including 2.0 metres of 16.2 g/t Au in Hole GS24-171;
- 8.0 metres of mineralization grading 1.6 g/t Au, including 2.9 metres of 3.9 g/t Au in Hole GS24-172;
- 2.1 metres of mineralization grading 5.3 g/t Au, in Hole GS24-173;
- 9.1 metres of mineralization grading 4.3 g/t Au, including 3.7 metres of 7.2 g/t Au in Hole GS24-179
Dorset Gold Trend now defined for 2 kilometres of strike length of continuous mineralization.
15,000 metres of drilling planned for the Golden Sky Project in 2025.
Fully funded 2025 exploration budget.

Breanne Beh, Chief Executive Officer of Angus, states: “We are extremely pleased with the continued delivery of step-out results from our new high-grade Dorset West Zone. We have now defined this new zone over 100m of strike-length and are excited to be returning to the area to begin our 2025 drilling campaign, announced on January 14, 2025. The Dorset Gold Trend has grown from 750 metres of strike length to 2 kilometres since Angus acquired the project in 2020. We continue to be encouraged with the consistency of the mineralization and look forward to expanding the zone as we continue to explore the entirety of the 7.0 kilometres of potential strike length of the shear zone that hosts the Dorset Deposit.”

The goal of the Dorset West fall drill program was to complete step-out holes to the east and west of the high-grade intercept of 7.0 g/t Au over 12.4 metres in Hole GS-24-136. Eleven (11) holes were completed, eight (8) of which returned gold intersections and three (3) of which hosted visible gold. The most notable intercepts were in GS-24-171 and GS-24-179. GS-24-171, a 50-metre step-out to the west of GS-24-136, returned 13.7 metres grading 3.2 g/t Au including 2.0 metres of 16.2 g/t Au. GS-24-179, a 75m step-out west of GS-24-136, returned 9.1 metres grading 4.3 g/t Au including 3.7 metres grading 7.2 g/t Au. The gold mineralization in both of these holes was hosted in quartz veins within a metasedimentary rock package, the same geologic setting as the mineralization in GS-24-136. These results begin to show consistency in this new high-grade zone that is completely open to the west with minimal historic drilling completed along the structural corridor for 2 kilometres.

Selected drill results from the 11 holes at the Golden Sky drilling program are, as follows:

Hole Number	From (m)	To (m)	Length (m)	Au g/t	Area
GS-24-171	121.9	122.7	0.8	2.2	Dorset West
GS-24-171	209.2	222.9	13.7	3.2
including	220.9	222.9	2.0	16.2
GS-24-171	252.7	255.0	2.3	1.7
GS-24-172	86.1	90.1	4.0	1.1	Dorset West
including	87.10	87.60	0.5	2.3
GS-24-172	244.0	252.0	8.0	1.6
including	247.7	250.6	2.9	3.9
GS-24-173	221.9	224.0	2.1	5.3	Dorset West
GS-24-176	187.7	188.6	0.9	5.3	Dorset West
GS-24-176	200.5	201.5	1.0	8.2	Dorset West
GS-24-179	105.9	106.4	0.5	2.2	Dorset West
GS-24-179	204.0	213.1	9.1	4.3
including	208.0	211.7	3.7	7.2

(1) Assay results presented over core length. Additional drilling will be necessary to constrain the true width of the mineralized envelope of the gold system.

The 2025 drilling campaign at the Golden Sky project is planned to be 15,000 metres and will test targets along the Dorset Zone mineralized structural corridor in addition to the BIF Gold Zone and the Eagle River Splay exploration area.

Figure 1: Dorset West Fall 2024 Drill Results Map

Figure 2: Dorset Structural Corridor Map

The Golden Sky Project
The 100%-owned Golden Sky Project is located within the Mishibishu Lake Greenstone Belt of Northern Ontario, which is host to Wesdome’s high-grade Eagle River and the Mishi open-pit gold mines. The Company’s 290-square-kilometres land package is located approximately 50 kilometres west of the town of Wawa and is situated immediately between the two Wesdome mines.

The ongoing drill program on the Golden Sky Project is focused on the Dorset Gold Zone, which hosts a historic gold resource; the BIF Zone, a new gold zone discovery in a large banded iron formation; as well as the Eagle River Splay deformation zone, which shows potential for another extensive gold system. Angus’ drill programs on the near-surface Dorset Gold Zone have been successful at extending the strike length of the previously modelled zone from 750 metres to 1.7 kilometres. The Dorset Gold Zone historic estimated resource (using a 0.50 g/t Au cut-off) consists of an indicated resource of 40,000 ounces of gold (780,000 tonnes grading 1.4 g/t Au), and an inferred resource of 180,000 ounces of gold (4,760,000 tonnes grading 1.2 g/t Au). For greater details on the Golden Sky Project, please refer to the NI 43-101 technical report for the Golden Sky Project entitled, ’NI 43-101 Technical Report Wawa Property Ontario, Canada’ dated February 18, 2020, and available on the Company’s SEDAR profile.

Qualified Person
The scientific and technical content of this press release has been reviewed and approved by Breanne Beh, P.Geo, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and Chief Geologist for the Company.

Quality Control
During the last drilling program, assay samples were taken from the NQ core by sawing the drill core in half, with one-half sent to a certified commercial laboratory and the other half retained for future reference. A strict QA/QC program was applied to all samples; which includes insertion of mineralized standards and blank samples for each batch of 20 samples. The gold analyses were completed by fire-assay with an atomic absorption finish on 50 grams of materials. Repeats were carried out by fire-assay followed by gravimetric testing on each sample containing 3.0 g/t gold or more.

About Angus Gold:
Angus Gold Inc. is a Canadian mineral exploration company focused on the acquisition, exploration, and development of highly prospective gold properties. The Company’s flagship project is the Golden Sky Project in Wawa, Ontario. The Project is immediately adjacent to the Eagle River Mine of Wesdome Gold Mines Ltd.

On behalf of Angus Gold Inc.,

Breanne Beh
President and Chief Executive Officer

INQUIRIES:
Lindsay Dunlop, Vice President Investor Relations
Email: info@angusgold.com
Phone: 647-259-1790
Company Website: www.angusgold.com

TSXV: GUS | USOTC: ANGVF

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This News Release includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to anticipate and counteract the effects of COVID-19 pandemic on the business of the Company, including without limitation the effects of COVID-19 on the capital markets, commodity prices supply chain disruptions, restrictions on labour and workplace attendance and local and international travel, failure to receive requisite approvals in respect of the transactions contemplated by the Agreement, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company’s public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Figures accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/5f6f7570-eb7e-4755-9872-9285c63d2fac
https://www.globenewswire.com/NewsRoom/AttachmentNg/db616132-c341-48ef-b341-7bc6280b6078

The MIL Network –

January 29, 2025

MIL-OSI: CareCloud to Present at The Microcap Conference 2025

Source: GlobeNewswire (MIL-OSI)

Somerset, NJ, Jan. 28, 2025 (GLOBE NEWSWIRE) — CareCloud, Inc. (the “Company”) (Nasdaq: CCLD, CCLDO, CCLDP), a leading provider of healthcare technology and generative AI solutions for medical practices and health systems nationwide, is pleased to announce its participation in The Microcap Conference 2025, the premier event for growth-focused companies and investors. The conference will take place January 28-30, 2025 at the Borgata Hotel Spa & Casino in Atlantic City, NJ.

CareCloud’s management team will deliver a corporate presentation highlighting the Company’s recent developments, innovative solutions, and strategic growth initiatives. Additionally, the team will participate in one-on-one meetings with institutional and individual investors to explore opportunities and discuss CareCloud’s roadmap for continued growth and value creation.

“We are excited to discuss CareCloud’s many recent milestones, including the imminent resumption of our Preferred Stock dividends in February 2025, the overwhelming support we received from shareholders in our most recent proxy to increase our authorized common shares, and our strong profitability growth during 2024,” said Stephen Snyder, Co-CEO of CareCloud. “These achievements, together with our stock performance over the last year, reflect investor confidence in our strategy and execution.”

About The Microcap Conference 2025

The Microcap Conference is the largest independent microcap event in the U.S., bringing together top-tier investors and executives from growth-oriented companies. The event provides an unparalleled platform for companies to showcase their value propositions through corporate presentations, expert panels, and networking opportunities.

The 2025 conference highlights include:

Keynote Speakers: Renowned industry leaders, including Jon Ledecky, Co-Owner of the New York Islanders, and Tom Gardner, CEO of Motley Fool, will share their insights on investing and market trends.
Expert Panels and Presentations: Financial commentators Ron Insana (CNBC) and Charlie Gasparino (FOX Business) will cover pressing topics, including capital formation, regulatory updates, and equity market trends.
Entertainment Headliner: Comedian and Netflix star Tom Papa will headline an evening performance, adding a touch of entertainment to the event.

Hosted by DealFlow Events, The Microcap Conference is celebrated for combining high-quality financial insights with engaging networking and entertainment experiences. For more information, visit The Microcap Conference.

About CareCloud

CareCloud brings disciplined innovation to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health at www.carecloud.com.

To listen to video presentations by CareCloud’s management team, read recent press releases and view our latest investor presentation, please visit ir.carecloud.com.

Follow CareCloud on LinkedIn, X and Facebook.

Forward-Looking Statements

This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, the impact of pandemics on our financial performance and business activities, and the expected results from the integration of our acquisitions.

These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

SOURCE CareCloud

Company Contact:
Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
nroth@carecloud.com

Investor Contact:
Stephen Snyder
Co-Chief Executive Officer
CareCloud, Inc.
ir@carecloud.com

The MIL Network –

January 29, 2025

MIL-OSI: Capital City Bank Group, Inc. Reports Fourth Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

TALLAHASSEE, Fla., Jan. 28, 2025 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.1 million, or $0.77 per diluted share, for the fourth quarter of 2024 compared to $13.1 million, or $0.77 per diluted share, for the third quarter of 2024, and $11.7 million, or $0.70 per diluted share, for the fourth quarter of 2023.

For the full year of 2024, net income attributable to common shareowners totaled $52.9 million, or $3.12 per diluted share, compared to net income of $52.3 million, or $3.07 per diluted share, for the same period of 2023.

QUARTER HIGHLIGHTS (4^thQuarter 2024 versus 3^rdQuarter 2024)

Income Statement

Tax-equivalent net interest income totaled $41.2 million compared to $40.3 million for the prior quarter
- Net interest margin increased 5 basis points to 4.17% (total deposit costs down 6 basis points partially offset by a 1 basis point decrease in earning asset yield).
Stable credit quality metrics and credit loss provision – net loan charge-offs were 25 basis points (annualized) of average loans – allowance coverage ratio was 1.10% at December 31, 2024
Noninterest income decreased $0.8 million, or 3.9%, driven by lower mortgage banking revenues
Noninterest expense decreased $1.1 million, or 2.7%, primarily due to lower other expense which included a gain from the sale of a banking office

Balance Sheet

Loan balances decreased $16.1 million, or 0.6% (average), and $31.5 million, or 1.2% (end of period)
Deposit balances increased $28.4 million, or 0.8% (average), and increased $92.9 million, or 2.6% (end of period), reflective of the seasonal increase in public fund balances
Tangible book value per share increased $1.05, or 4.6%, due in part to a favorable year-end re-measurement adjustment for the pension plan ($0.60 per diluted share)

FULL YEAR 2024 HIGHLIGHTS

Income Statement

Tax-equivalent net interest income totaled $159.2 million for 2024 compared to $159.4 million for 2023 driven by higher yields across our earning assets, partially offset by higher deposit cost which was well controlled at 89 basis points for the year – net interest margin was 4.08% for 2024 compared to 4.05% for 2023
Credit quality metrics remained strong throughout the year – allowance coverage ratio remained stable at 1.10% – net loan charge-offs were 21 basis points of average loans for 2024 versus 18 basis points for 2023
Noninterest income increased $4.4 million, or 6.1%, driven by higher mortgage banking revenues and wealth management fees
Noninterest expense increased $8.3 million, or 5.3%, primarily due to higher compensation expense reflective of higher incentive compensation, merit raises, and higher health insurance costs

Balance Sheet

Loan balances increased $50.1 million, or 1.9% (average), and decreased $82.4 million, or 3.0% (end of period)
Deposit balances decreased $72.2 million, or 2.0% (average), and decreased $29.8 million, or 0.8% (end of period)
Tangible book value per share increased $3.20, or 15.6%, driven by strong earnings and favorable investment security and pension plan accumulated other comprehensive loss adjustments

“In 2024, we delivered record earnings and advanced our commitment to creating shareholder value, which is demonstrated by a 15.6% increase in tangible book value per share, a 15.8% increase in the dividend, and the repurchase of 83,000 shares,” said William G. Smith, Jr., President, Chairman and CEO of Capital City Bank Group. “Our associates also earned us recognition for the 12^th consecutive year as one of the best banks to work for—an achievement that underscores the strength of our organization and the core values we embrace. We remain focused on soundness, profitability, growth, and making strategic investments that add long-term value. Our fortress balance sheet, diversified revenues, and growth markets together position us well for 2025 and beyond.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the fourth quarter of 2024 totaled $41.2 million, compared to $40.3 million for the third quarter of 2024, and $39.3 million for the fourth quarter of 2023. For 2024, tax-equivalent net interest income totaled $159.2 million compared to $159.4 million for 2023. Compared to the third quarter of 2024, the increase reflected higher investment securities interest due to new investment purchases at higher yields, in addition to lower deposit interest expense, partially offset by lower loan interest due to lower balances. Compared to 2023, the slight decrease reflected an increase in deposit interest expense and a decrease in investment securities interest that was offset by increases in loan interest and overnight funds interest.

Our net interest margin for the fourth quarter of 2024 was 4.17%, an increase of five basis points over the third quarter of 2024 and an increase of 10 basis points over the fourth quarter of 2023. For the month of December 2024, our net interest margin was 4.18%. For 2024, our net interest margin was 4.08%, an increase of three basis points over 2023. Compared to the third quarter of 2024, the increase reflected higher yield in the investment portfolio driven by new purchases during the quarter, in addition to lower deposit interest expense. The increase over 2023 reflected a combination of earning assets re-pricing at higher interest rates and higher average loan balances, partially offset by a higher cost of deposits. For the fourth quarter of 2024, our cost of funds was 88 basis points, a decrease of five basis points from the third quarter of 2024 and an increase of 15 basis points over the fourth quarter of 2023. Our total cost of deposits (including noninterest bearing accounts) was 86 basis points, 92 basis points, and 66 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $0.7 million for the fourth quarter of 2024 compared to $1.2 million for the third quarter of 2024 and $2.0 million for the fourth quarter of 2023. Compared to the third quarter of 2024, the provision expense reflected a $0.8 million decrease in the provision for loans held for investment (“HFI”) and a $0.3 million decrease in the provision benefit for unfunded loan commitments. The decrease in the provision for loans HFI was primarily due to lower loan balances and slightly lower loss rates.

For 2024, we recorded a provision expense for credit losses of $4.0 million compared to $9.7 million for 2023. The decrease reflected a $4.5 million decrease in the provision for loans HFI and a $1.2 million decrease in the provision for unfunded loan commitments. The decrease in the provision for loans HFI was primarily due to lower new loan volume and loan balances in 2024 and favorable loan grade migration. The decrease in the provision for unfunded loan commitments reflected a lower level of loan commitments. We discuss the allowance for credit losses further below.

Noninterest Income and Noninterest Expense

Noninterest income for the fourth quarter of 2024 totaled $18.8 million compared to $19.5 million for the third quarter of 2024 and $17.2 million for the fourth quarter of 2023. Compared to the third quarter of 2024, the $0.7 million decrease from the third quarter of 2024 reflected a $0.8 million decrease in mortgage banking revenues attributable to lower production volume and a $0.3 million decrease in deposit fees that was partially offset by a $0.4 million increase in wealth management fees, primarily from retail brokerage. The $1.6 million increase over the fourth quarter of 2023 was driven by higher mortgage banking revenues of $0.8 million driven by a higher gain on sale margin and wealth management fees of $0.9 million, primarily from retail brokerage and to a lesser extent trust.

For 2024, noninterest income totaled $76.0 million compared to $71.6 million for 2023, primarily attributable to a $3.9 million increase in mortgage banking revenues and a $2.8 million increase in wealth management fees, partially offset by a $2.2 million decrease in other income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The increase in wealth management fees was primarily driven by higher retail brokerage fees and to a lesser extent trust fees, primarily attributable to both new account growth and higher account values driven by higher market returns. The decrease in other income was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights in 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.

Noninterest expense for the fourth quarter of 2024 totaled $41.8 million compared to $42.9 million for the third quarter of 2024 and $40.0 million for the fourth quarter of 2023. The $1.1 million decrease from the third quarter of 2024 was primarily attributable to lower other expense of $1.2 million and occupancy expense of $0.2 million that was partially offset by a $0.3 million increase in compensation expense. The decrease in other expense was primarily attributable to a $1.0 million decrease in other real estate expense driven by the sale of a banking office and lower miscellaneous expense of $0.5 million which reflected a non-routine VISA Class B swap payment in the third quarter of 2024. The decrease in occupancy expense reflected lower property tax and software license expense. The increase in compensation was driven by higher incentive plan compensation. Compared to the fourth quarter of 2023, the $1.8 million increase was driven by a $2.3 million increase in compensation expense that was partially offset by a $0.2 million decrease in occupancy expense and a $0.3 million decrease in other expense. The unfavorable variance in compensation expense reflected a $1.4 million increase in salary expense and a $0.9 million increase in other benefit expense with the salary expense driven by higher incentive compensation and merit adjustments and the associate benefit expense reflective of higher health insurance cost.

For 2024, noninterest expense totaled $165.3 million compared to $157.0 million for 2023, primarily attributable to increases in compensation expense of $6.9 million, occupancy expense of $0.3 million, and other expense of $1.1 million. The increase in compensation reflected a $5.4 million increase in salary expense and a $1.6 million increase in other associate benefit expense. The increase in salary expense was primarily due to a lower level of realized loan cost (credit offset to salary expense) of $3.1 million (lower new loan volume), higher base salary expense of $2.2 million (primarily annual merit raises), and a $1.2 million increase in cash incentive compensation that was partially offset by lower commission expense of $1.4 million (lower residential mortgage volume). The unfavorable variance in other associate benefit expense was due to a $0.9 million increase in associate insurance cost and a $0.6 million increase in stock compensation expense. The increase in occupancy expense was attributable to increases in software license and maintenance agreement expenses. The increase in other expense was driven by a $1.1 million increase in other real estate expense and a $1.4 million increase in processing expense that was partially offset by a $1.4 million decrease in miscellaneous expense. The increase in other real estate expense reflected a lower level of gains from the sale of banking offices in 2024. The increase in processing expense reflected both inflationary increases on contract renewals and the outsourcing of our core processing system. The decrease in miscellaneous expense was attributable to lower pension plan expense for the non-service related component of the plan.

Income Taxes

We realized income tax expense of $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024 compared to $3.0 million (effective rate of 19.1%) for the third quarter of 2024 and $2.9 million (effective rate of 20.3%) for the fourth quarter of 2023. Compared to the third quarter of 2024, the increase in our effective tax rate was attributable to a lower than projected level of pre-tax income from Capital City Home Loans (“CCHL”) in relation to our consolidated income as the non-controlling interest adjustment for CCHL is accounted for as a permanent tax adjustment. Further, we realized a higher than projected Internal Revenue Code (“IRC”) Section 162(m) limitation related to current and future compensation. For 2024, we realized income tax expense of $13.9 million (effective rate of 21.2%) compared to $13.0 million (effective rate of 20.4%) for 2023 with the increase in the effective tax rate primarily attributable to a higher IRC Section 162(m) limitation and lower tax-exempt interest income. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.922 billion for the fourth quarter of 2024, an increase of $38.5 million, or 1.0 %, over the third quarter of 2024, and an increase of $97.9 million, or 2.6%, over the fourth quarter of 2023. The increase over both prior periods was primarily driven by higher deposit balances (see below – Deposits). Compared to the third quarter of 2024, the change in earning asset mix was primarily attributable to a $41.4 million increase in short term investments (overnight funds sold), a $6.7 million increase in investment securities, and $6.5 million increase in loans held for sale, partially offset by a $16.1 million decrease in loans HFI. Compared to the fourth quarter of 2023, the change in earning asset mix reflected a $198.4 million increase in short term investments (overnight funds sold) that was partially offset by a $48.0 million decrease in investment securities, a $33.8 million decrease in loans HFI, and a $18.7 million decrease in loans held for sale.

Average loans HFI for the fourth quarter of 2024 decreased $16.1 million, or 0.6%, from the third quarter of 2024 and decreased $33.8 million, or 1.3%, from the fourth quarter of 2023. Compared to the third quarter of 2024, the decline was primarily attributable to decreases in consumer loans (primarily indirect auto) of $18.3 million and commercial mortgage real estate loans of $24.1 million, partially offset by increases in construction real estate loans of $13.1 million, and residential real estate loans of $11.6 million. Compared to the fourth quarter of 2023, the decrease was driven by decreases in consumer loans (primarily indirect auto) of $72.8 million, commercial loans of $30.2 million, and commercial mortgage real estate loans of $25.3 million, partially offset by increases in residential real estate loans of $70.8 million, construction real estate loans of $16.6 million, and home equity loans of $10.2 million.

Loans HFI at December 31, 2024 decreased $31.5 million, or 1.2%, from September 30, 2024 and decreased $82.4 million, or 3.0%, from December 31, 2023. Compared to September 30, 2024, the decrease was driven by decreases in commercial mortgage real estate loans of $40.9 million, consumer loans (primarily indirect auto) of $13.8 million, and commercial loans of $5.4 million, partially offset by increases in home equity loans of $9.1 million, other loans of $13.5 million, and residential real estate loans of $5.0 million. Compared to December 31, 2023, the decrease was primarily attributable to decreases in consumer loans (primarily indirect auto) of $71.5 million, commercial mortgage real estate loans of $46.4 million, and commercial loans of $36.0 million, partially offset by increases in residential real estate loans of $27.2 million, construction real estate loans of $23.9 million, and home equity loans of $9.1 million.

Allowance for Credit Losses

At December 31, 2024, the allowance for credit losses for loans HFI totaled $29.3 million compared to $29.8 million at September 30, 2024 and $29.9 million at December 31, 2023. Activity within the allowance is provided on Page 9. The decreases in the allowance from September 30, 2024 and December 31, 2023 were primarily attributable to lower loan balances and favorable loan migration. Net loan charge-offs were 25 basis points of average loans for the fourth quarter of 2024 versus 19 basis points for the third quarter of 2024. For 2024, net loan charge-offs were 21 basis points of average loans compared to 18 basis points in 2023. At December 31, 2024, the allowance represented 1.10% of loans HFI compared to 1.11% at September 30, 2024, and 1.10% at December 31, 2023.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $6.7 million at December 31, 2024 compared to $7.2 million at September 30, 2024 and $6.2 million at December 31, 2023. At December 31, 2024, nonperforming assets as a percent of total assets equaled 0.15%, compared to 0.17% at September 30, 2024 and 0.15% at December 31, 2023. Nonaccrual loans totaled $6.3 million at December 31, 2024, a $0.3 million decrease from September 30, 2024 and a $0.1 million increase over December 31, 2023. Further, classified loans totaled $19.9 million at December 31, 2024, a $5.6 million decrease from September 30, 2024 and a $2.3 million decrease from December 31, 2023.

Deposits

Average total deposits were $3.600 billion for the fourth quarter of 2024, an increase of $28.4 million, or 0.8%, over the third quarter of 2024 and an increase of $51.9 million, or 1.5%, over the fourth quarter of 2023. Compared to the third quarter of 2024, the increase was primarily attributable to higher NOW account balances which reflected the seasonal inflow of public funds from municipal clients as they receive their tax receipts beginning in late November. The increase over the fourth quarter of 2023 reflected higher NOW, MMA, and certificates of deposit (“CD”) balances that were partially offset by decreases in noninterest bearing and savings balances. During 2024, we realized a re-mix in deposits as rate sensitive clients sought higher yield deposit products. Average core deposit balances (total deposits less public funds) increased $20.3 million over the third quarter of 2024 and $28.4 million over the fourth quarter of 2023.

At December 31, 2024, total deposits were $3.672 billion, an increase of $92.9 million, or 2.6%, over September 30, 2024 and a decrease of $29.8 million, or 0.8%, from December 31, 2023. Compared to the third quarter of 2024, the increase was primarily due to a $110.7 million increase in NOW account balances which reflected the aforementioned seasonal inflow of public funds balances. The decrease from the fourth quarter of 2023 was driven by lower noninterest bearing, NOW, and savings account balances that were partially offset by higher MMA and CD balances which reflected the aforementioned re-mix in balances during 2024. Core deposit balances (total deposits less public funds) decreased $50.3 million from the third quarter of 2024 and increased $21.9 million over the fourth quarter of 2023.

Liquidity

The Bank maintained an average net overnight funds (deposits with banks plus FED funds sold less FED funds purchased) sold position of $298.3 million in the fourth quarter of 2024 compared to $256.9 million in the third quarter of 2024 and $99.8 million in the fourth quarter of 2023. Compared to both prior periods, the increases reflected growth in average core and public fund deposit balances.

At December 31, 2024, we had the ability to generate approximately $1.535 billion (excludes overnight funds position of $321 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

We also view our investment portfolio as a liquidity source and have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At December 31, 2024, the weighted-average maturity and duration of our portfolio were 2.54 years and 2.19 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $19.2 million.

Capital

Shareowners’ equity was $495.3 million at December 31, 2024 compared to $476.5 million at September 30, 2024 and $440.6 million at December 31, 2023. For the fourth quarter of 2024, shareowners’ equity was positively impacted by net income attributable to common shareowners of $13.1 million, a net $7.6 million decrease in the accumulated other comprehensive loss, the issuance of stock of $0.9 million, stock compensation accretion of $0.7 million, and a $0.4 million reclassification from temporary equity (concurrent with the agreement to assign the minority membership interest (49%) in Capital City Home Loans, LLC, temporary equity was reclassified to other liabilities and included a $0.4 million net credit to retained earnings to account for the difference between the fair value and the book value of the minority interest). The net favorable change in accumulated other comprehensive loss reflected a $10.1 million decrease in the pension plan loss from the year-end re-measurement of the plan and a $0.7 million increase in the fair value of the interest rate swap related to subordinated debt, that was partially offset by a $3.2 million increase in the investment securities loss. Shareowners’ equity was reduced by common stock dividends of $3.9 million ($0.23 per share).

For the full year 2024, shareowners’ equity was positively impacted by net income attributable to common shareowners of $52.9 million, a net $15.7 million decrease in the accumulated other comprehensive loss, the issuance of stock of $3.1 million, and stock compensation accretion of $1.9 million. The net favorable change in accumulated other comprehensive loss reflected a $10.1 million decrease in the pension plan loss from the year-end re-measurement of the plan and a $5.6 million decrease in the investment securities loss. Shareowners’ equity was reduced by common stock dividends of $14.9 million ($0.88 per share), the repurchase of stock of $2.3 million (82,540 shares), net adjustments totaling $1.4 million related to transactions under our stock compensation plans, and a $0.3 million reclassification from temporary equity.

At December 31, 2024, our total risk-based capital ratio was 18.77% compared to 17.97% at September 30, 2024 and 16.57% at December 31, 2023. Our common equity tier 1 capital ratio was 15.64%, 14.88%, and 13.52%, respectively, on these dates. Our leverage ratio was 11.05%, 10.89%, and 10.30%, respectively, on these dates. At December 31, 2024, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio was 9.55% at December 31, 2024 compared to 9.28% and 8.26% at September 30, 2024 and December 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $16.0 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.17%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.3 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 63 banking offices and 104 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding costs, net interest margin and ability to replace maturing deposits and advances; legislative or regulatory changes; adverse developments in the financial services industry generally; inflation, interest rate, market and monetary fluctuations; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans; interest rate risk and price risk resulting from retaining mortgage servicing rights and the effects of higher interest rates on our loan origination volumes; changes in monetary and fiscal policies of the U.S. Government; the cost and effects of cybersecurity incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; the effects of fraud related to debit card products; the accuracy of our financial statement estimates and assumptions; changes in accounting principles, policies, practices or guidelines; the frequency and magnitude of foreclosure of our loans; the effects of our lack of a diversified loan portfolio; the strength of the local economies in which we operate; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; our ability to retain key personnel; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest or other geopolitical events; our ability to comply with the extensive laws and regulations to which we are subject; the impact of the restatement of our previously issued consolidated statements of cash flows and any deficiencies in the processes undertaken to effect such restatements; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; the willingness of clients to accept third-party products and services rather than our products and services; technological changes; the outcomes of litigation or regulatory proceedings; negative publicity and the impact on our reputation; changes in consumer spending and saving habits; growth and profitability of our noninterest income; the limited trading activity of our common stock; the concentration of ownership of our common stock; anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because it allows investors to more easily compare our capital adequacy to other companies in the industry.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023
Shareowners’ Equity (GAAP)		$	495,317		$	476,499		$	460,999		$	448,314		$	440,625
Less: Goodwill and Other Intangibles (GAAP)			92,773			92,813			92,853			92,893			92,933
Tangible Shareowners’ Equity (non-GAAP)	A		402,544			383,686			368,146			355,421			347,692
Total Assets (GAAP)			4,307,142			4,225,316			4,225,695			4,259,922			4,304,477
Less: Goodwill and Other Intangibles (GAAP)			92,773			92,813			92,853			92,893			92,933
Tangible Assets (non-GAAP)	B	$	4,214,369		$	4,132,503		$	4,132,842		$	4,167,029		$	4,211,544
Tangible Common Equity Ratio (non-GAAP)	A/B		9.55	%		9.28	%		8.91	%		8.53	%		8.26	%
Actual Diluted Shares Outstanding (GAAP)	C		17,018,122			16,980,686			16,970,228			16,947,204			17,000,758
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	23.65		$	22.60		$	21.69		$	20.97		$	20.45

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
*Unaudited*

		Three Months Ended						Twelve Months Ended
(Dollars in thousands, except per share data)		Dec 31, 2024		Sep 30, 2024		Dec 31, 2023		Dec 31, 2024		Dec 31, 2023
EARNINGS
Net Income Attributable to Common Shareowners	$	13,090	$	13,118	$	11,720		52,915	$	52,258
Diluted Net Income Per Share	$	0.77	$	0.77	$	0.70		3.12	$	3.07
PERFORMANCE
Return on Average Assets (annualized)		1.22	%	1.24	%	1.12	%	1.25	%	1.22	%
Return on Average Equity (annualized)		10.60		10.87		10.69		11.18		12.40
Net Interest Margin		4.17		4.12		4.07		4.08		4.05
Noninterest Income as % of Operating Revenue		31.34		32.67		30.46		32.34		31.05
Efficiency Ratio		69.74	%	71.81	%	70.82	%	70.30	%	67.99	%
CAPITAL ADEQUACY
Tier 1 Capital		17.58	%	16.77	%	15.37	%	17.58	%	15.37	%
Total Capital		18.77		17.97		16.57		18.77		16.57
Leverage		11.05		10.89		10.30		11.05		10.30
Common Equity Tier 1		15.64		14.88		13.52		15.64		13.52
Tangible Common Equity ⁽¹⁾		9.55		9.28		8.26		9.55		8.26
Equity to Assets		11.50	%	11.28	%	10.24	%	11.50	%	10.24	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		464.14	%	452.64	%	479.70	%	464.14	%	479.70	%
Allowance as a % of Loans HFI		1.10		1.11		1.10		1.10		1.10
Net Charge-Offs as % of Average Loans HFI		0.25		0.19		0.23		0.21		0.18
Nonperforming Assets as % of Loans HFI and OREO		0.25		0.27		0.23		0.25		0.23
Nonperforming Assets as % of Total Assets		0.15	%	0.17	%	0.15	%	0.15	%	0.15	%
STOCK PERFORMANCE
High	$	40.86	$	36.67	$	32.56		40.86	$	36.86
Low		33.00		26.72		26.12		25.45		26.12
Close	$	36.65	$	35.29	$	29.43		36.65	$	29.43
Average Daily Trading Volume		27,484		37,151		33,297		31,390		33,775

⁽¹⁾ Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 7.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
*Unaudited*

	2024												2023
(Dollars in thousands)	Fourth Quarter				Third Quarter			Second Quarter			First Quarter			Fourth Quarter
ASSETS
Cash and Due From Banks	$	70,543		$	83,431		$	75,304		$	73,642		$	83,118
Funds Sold and Interest Bearing Deposits		321,311			261,779			272,675			231,047			228,949
Total Cash and Cash Equivalents		391,854			345,210			347,979			304,689			312,067

Investment Securities Available for Sale		403,345			336,187			310,941			327,338			337,902
Investment Securities Held to Maturity		567,155			561,480			582,984			603,386			625,022
Other Equity Securities		2,399			6,976			2,537			3,445			3,450
Total Investment Securities		972,899			904,643			896,462			934,169			966,374

Loans Held for Sale		28,672			31,251			24,022			24,705			28,211

Loans Held for Investment (“HFI”):
Commercial, Financial, & Agricultural		189,208			194,625			204,990			218,298			225,190
Real Estate – Construction		219,994			218,899			200,754			202,692			196,091
Real Estate – Commercial		779,095			819,955			823,122			823,690			825,456
Real Estate – Residential		1,028,498			1,023,485			1,012,541			1,012,791			1,001,257
Real Estate – Home Equity		220,064			210,988			211,126			214,617			210,920
Consumer		199,479			213,305			234,212			254,168			270,994
Other Loans		14,006			461			2,286			3,789			2,962
Overdrafts		1,206			1,378			1,192			1,127			1,048
Total Loans Held for Investment		2,651,550			2,683,096			2,690,223			2,731,172			2,733,918
Allowance for Credit Losses		(29,251	)		(29,836	)		(29,219	)		(29,329	)		(29,941	)
Loans Held for Investment, Net		2,622,299			2,653,260			2,661,004			2,701,843			2,703,977

Premises and Equipment, Net		81,952			81,876			81,414			81,452			81,266
Goodwill and Other Intangibles		92,773			92,813			92,853			92,893			92,933
Other Real Estate Owned		367			650			650			1			1
Other Assets		116,326			115,613			121,311			120,170			119,648
Total Other Assets		291,418			290,952			296,228			294,516			293,848
Total Assets	$	4,307,142		$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,306,254		$	1,330,715		$	1,343,606		$	1,361,939		$	1,377,934
NOW Accounts		1,285,281			1,174,585			1,177,180			1,212,452			1,327,420
Money Market Accounts		404,396			401,272			413,594			398,308			319,319
Savings Accounts		506,766			507,604			514,560			530,782			547,634
Certificates of Deposit		169,280			164,901			159,624			151,320			129,515
Total Deposits		3,671,977			3,579,077			3,608,564			3,654,801			3,701,822

Repurchase Agreements		26,240			29,339			22,463			23,477			26,957
Other Short-Term Borrowings		2,064			7,929			3,307			8,409			8,384
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		794			794			1,009			265			315
Other Liabilities		57,863			71,974			69,987			65,181			66,080
Total Liabilities		3,811,825			3,742,000			3,758,217			3,805,020			3,856,445

Temporary Equity		–			6,817			6,479			6,588			7,407
SHAREOWNERS’ EQUITY
Common Stock		170			169			169			169			170
Additional Paid-In Capital		37,684			36,070			35,547			34,861			36,326
Retained Earnings		463,949			454,342			445,959			435,364			426,275
Accumulated Other Comprehensive Loss, Net of Tax		(6,486	)		(14,082	)		(20,676	)		(22,080	)		(22,146	)
Total Shareowners’ Equity		495,317			476,499			460,999			448,314			440,625
Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,307,142		$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477
OTHER BALANCE SHEET DATA
Earning Assets	$	3,974,431		$	3,880,769		$	3,883,382		$	3,921,093		$	3,957,452
Interest Bearing Liabilities		2,447,708			2,339,311			2,344,624			2,377,900			2,412,431
Book Value Per Diluted Share	$	29.11		$	28.06		$	27.17		$	26.45		$	25.92
Tangible Book Value Per Diluted Share⁽¹⁾		23.65			22.60			21.69			20.97			20.45
Actual Basic Shares Outstanding		16,975			16,944			16,942			16,929			16,950
Actual Diluted Shares Outstanding		17,018			16,981			16,970			16,947			17,001
⁽¹⁾ Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 7.


CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
*Unaudited*

		2024									2023		Twelve Months Ended December 31,
(Dollars in thousands, except per share data)		Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter		2024		2023
INTEREST INCOME
Loans, including Fees	$	41,453		$	41,659	$	41,138	$	40,683	$	40,407	$	164,933	$	152,250
Investment Securities		4,694			4,155		4,004		4,244		4,392		17,097		18,692
Federal Funds Sold and Interest Bearing Deposits		3,596			3,514		3,624		1,893		1,385		12,627		10,126
Total Interest Income		49,743			49,328		48,766		46,820		46,184		194,657		181,068
INTEREST EXPENSE
Deposits		7,766			8,223		8,579		7,594		5,872		32,162		17,582
Repurchase Agreements		199			221		217		201		199		838		513
Other Short-Term Borrowings		83			52		68		39		310		242		1,538
Subordinated Notes Payable		581			610		630		628		627		2,449		2,427
Other Long-Term Borrowings		11			11		3		3		5		28		20
Total Interest Expense		8,640			9,117		9,497		8,465		7,013		35,719		22,080
Net Interest Income		41,103			40,211		39,269		38,355		39,171		158,938		158,988
Provision for Credit Losses		701			1,206		1,204		920		2,025		4,031		9,714
Net Interest Income after Provision for Credit Losses		40,402			39,005		38,065		37,435		37,146		154,907		149,274
NONINTEREST INCOME
Deposit Fees		5,207			5,512		5,377		5,250		5,304		21,346		21,325
Bank Card Fees		3,697			3,624		3,766		3,620		3,713		14,707		14,918
Wealth Management Fees		5,222			4,770		4,439		4,682		4,276		19,113		16,337
Mortgage Banking Revenues		3,118			3,966		4,381		2,878		2,327		14,343		10,400
Other		1,516			1,641		1,643		1,667		1,537		6,467		8,630
Total Noninterest Income		18,760			19,513		19,606		18,097		17,157		75,976		71,610
NONINTEREST EXPENSE
Compensation		26,108			25,800		24,406		24,407		23,822		100,721		93,787
Occupancy, Net		6,893			7,098		6,997		6,994		7,098		27,982		27,660
Other		8,781			10,023		9,038		8,770		9,038		36,612		35,576
Total Noninterest Expense		41,782			42,921		40,441		40,171		39,958		165,315		157,023
OPERATING PROFIT		17,380			15,597		17,230		15,361		14,345		65,568		63,861
Income Tax Expense		4,219			2,980		3,189		3,536		2,909		13,924		13,040
Net Income		13,161			12,617		14,041		11,825		11,436		51,644		50,821
Pre-Tax Loss (Income) Attributable to Noncontrolling Interest		(71	)		501		109		732		284		1,271		1,437
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	13,090		$	13,118	$	14,150	$	12,557	$	11,720	$	52,915	$	52,258
PER COMMON SHARE
Basic Net Income	$	0.77		$	0.77	$	0.84	$	0.74	$	0.69	$	3.12	$	3.08
Diluted Net Income		0.77			0.77		0.83		0.74		0.70		3.12		3.07
Cash Dividend	$	0.23		$	0.23	$	0.21	$	0.21	$	0.20	$	0.88	$	0.76
AVERAGE SHARES
Basic		16,946			16,943		16,931		16,951		16,947		16,943		16,987
Diluted		16,990			16,979		16,960		16,969		16,997		16,969		17,023

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES (“ACL”)
AND CREDIT QUALITY
*Unaudited*

		2024												2023			Twelve Months Ended December 31,
(Dollars in thousands, except per share data)		Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter			2024			2023
ACL – HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,836		$	29,219		$	29,329		$	29,941		$	29,083		$	29,941		$	25,068
Transfer from Other Liabilities		–			–			–			(50	)		66			(50	)		66
Provision for Credit Losses		1,085			1,879			1,129			932			2,354			5,025			9,529
Net Charge-Offs (Recoveries)		1,670			1,262			1,239			1,494			1,562			5,665			4,722
Balance at End of Period	$	29,251		$	29,836		$	29,219		$	29,329		$	29,941		$	29,251		$	29,941
As a % of Loans HFI		1.10	%		1.11	%		1.09	%		1.07	%		1.10	%		1.10	%		1.10	%
As a % of Nonperforming Loans		464.14	%		452.64	%		529.79	%		431.46	%		479.70	%		464.14	%		479.70	%
ACL – UNFUNDED COMMITMENTS
Balance at Beginning of Period		2,522		$	3,139		$	3,121		$	3,191		$	3,502		$	3,191		$	2,989
Provision for Credit Losses		(367	)		(617	)		18			(70	)		(311	)		(1,036	)		202
Balance at End of Period⁽¹⁾		2,155			2,522			3,139			3,121			3,191			2,155			3,191
ACL – DEBT SECURITIES
Provision for Credit Losses	$	(17	)	$	(56	)	$	57		$	58		$	(18	)	$	42		$	(17	)
CHARGE-OFFS
Commercial, Financial and Agricultural	$	499		$	331		$	400		$	282		$	217		$	1,512		$	511
Real Estate – Construction		47			–			–			–			–			47			–
Real Estate – Commercial		–			3			–			–			–			3			120
Real Estate – Residential		44			–			–			17			79			61			79
Real Estate – Home Equity		33			23			–			76			–			132			39
Consumer		1,307			1,315			1,061			1,550			1,689			5,233			5,754
Overdrafts		574			611			571			638			602			2,394			2,789
Total Charge-Offs	$	2,504		$	2,283		$	2,032		$	2,563		$	2,587		$	9,382		$	9,292
RECOVERIES
Commercial, Financial and Agricultural	$	103		$	176		$	59		$	41		$	83		$	379		$	277
Real Estate – Construction		3			–			–			–			–			3			2
Real Estate – Commercial		33			5			19			204			16			261			52
Real Estate – Residential		28			88			23			37			34			176			253
Real Estate – Home Equity		17			59			37			24			17			137			226
Consumer		352			405			313			410			433			1,480			1,936
Overdrafts		298			288			342			353			442			1,281			1,824
Total Recoveries	$	834		$	1,021		$	793		$	1,069		$	1,025		$	3,717		$	4,570
NET CHARGE-OFFS (RECOVERIES)	$	1,670		$	1,262		$	1,239		$	1,494		$	1,562		$	5,665		$	4,722
Net Charge-Offs as a % of Average Loans HFI⁽²⁾		0.25	%		0.19	%		0.18	%		0.22	%		0.23	%		0.21	%		0.18	%
CREDIT QUALITY
Nonaccruing Loans	$	6,302		$	6,592		$	5,515		$	6,798		$	6,242
Other Real Estate Owned		367			650			650			1			1
Total Nonperforming Assets (“NPAs”)	$	6,669		$	7,242		$	6,165		$	6,799		$	6,243

Past Due Loans 30-89 Days	$	4,311		$	9,388		$	5,672		$	5,392		$	6,855
Classified Loans		19,896			25,501			25,566			22,305			22,203

Nonperforming Loans as a % of Loans HFI		0.24	%		0.25	%		0.21	%		0.25	%		0.23	%
NPAs as a % of Loans HFI and Other Real Estate		0.25	%		0.27	%		0.23	%		0.25	%		0.23	%
NPAs as a % of Total Assets		0.15	%		0.17	%		0.15	%		0.16	%		0.15	%

⁽¹⁾Recorded in other liabilities
⁽²⁾Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
*Unaudited*

		Fourth Quarter 2024							Third Quarter 2024							Second Quarter 2024							First Quarter 2024							Fourth Quarter 2023							Full Year 2024							Full Year 2023
(Dollars in thousands)		Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate
ASSETS:
Loans Held for Sale	$	31,047		$	976	7.89	%	$	24,570		$	720	7.49	%	$	26,281		$	517	5.26	%	$	27,314			563	5.99	%	$	49,790		$	817	6.50	%	$	27,306		$	2,776	6.72	%	$	55,510		$	3,232	5.82	%
Loans Held for Investment⁽¹⁾		2,677,396			40,521	6.07			2,693,533			40,985	6.09			2,726,748			40,683	6.03			2,728,629			40,196	5.95			2,711,243			39,679	5.81			2,706,461			162,385	6.03			2,656,394			149,366	5.62

Investment Securities
Taxable Investment Securities		914,353			4,688	2.04			907,610			4,148	1.82			918,989			3,998	1.74			952,328			4,239	1.78			962,322			4,389	1.81			923,253			17,073	1.85			1,016,550			18,652	1.83
Tax-Exempt Investment Securities⁽¹⁾		849			9	4.31			846			10	4.33			843			9	4.36			856			9	4.34			862			7	4.32			848			37	4.34			2,199			59	2.68

Total Investment Securities		915,202			4,697	2.04			908,456			4,158	1.82			919,832			4,007	1.74			953,184			4,248	1.78			963,184			4,396	1.82			924,101			17,110	1.85			1,018,749			18,711	1.83

Federal Funds Sold and Interest Bearing Deposits		298,255			3,596	4.80			256,855			3,514	5.44			262,419			3,624	5.56			140,488			1,893	5.42			99,763			1,385	5.51			239,712			12,627	5.27			203,147			10,126	4.98

Total Earning Assets		3,921,900		$	49,790	5.05	%		3,883,414		$	49,377	5.06	%		3,935,280		$	48,831	4.99	%		3,849,615		$	46,900	4.90	%		3,823,980		$	46,277	4.80	%		3,897,580		$	194,898	5.00	%		3,933,800		$	181,435	4.61	%

Cash and Due From Banks		73,992							70,994							74,803							75,763							76,681							73,881							75,786
Allowance for Credit Losses		(30,107	)						(29,905	)						(29,564	)						(30,030	)						(29,998	)						(29,902	)						(28,190	)
Other Assets		293,884							291,359							291,669							295,275							296,114							293,044							297,290

Total Assets	$	4,259,669						$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,234,603						$	4,278,686

LIABILITIES:
Noninterest Bearing Deposits	$	1,323,556						$	1,332,305						$	1,346,546						$	1,344,188						$	1,416,825						$	1,336,601						$	1,507,657
NOW Accounts		1,182,073		$	3,826	1.29	%		1,145,544		$	4,087	1.42	%		1,207,643		$	4,425	1.47	%		1,201,032		$	4,497	1.51	%		1,138,461		$	3,696	1.29	%		1,183,962		$	16,835	1.42	%		1,172,861		$	12,375	1.06	%
Money Market Accounts		422,615			2,526	2.38			418,625			2,694	2.56			407,387			2,752	2.72			353,591			1,985	2.26			318,844			1,421	1.77			400,664			9,957	2.49			299,581			3,670	1.22
Savings Accounts		504,859			179	0.14			512,098			180	0.14			519,374			176	0.14			539,374			188	0.14			557,579			202	0.14			518,869			723	0.14			592,033			598	0.10
Time Deposits		167,321			1,235	2.94			163,462			1,262	3.07			160,078			1,226	3.08			138,328			924	2.69			116,797			553	1.88			157,342			4,647	2.95			97,480			939	0.96
Total Interest Bearing Deposits		2,276,868			7,766	1.36			2,239,729			8,223	1.46			2,294,482			8,579	1.50			2,232,325			7,594	1.37			2,131,681			5,872	1.09			2,260,837			32,162	1.42			2,161,955			17,582	0.81
Total Deposits		3,600,424			7,766	0.86			3,572,034			8,223	0.92			3,641,028			8,579	0.95			3,576,513			7,594	0.85			3,548,506			5,872	0.66			3,597,438			32,162	0.89			3,669,612			17,582	0.48
Repurchase Agreements		28,018			199	2.82			27,126			221	3.24			26,999			217	3.24			25,725			201	3.14			26,831			199	2.94			26,970			838	3.11			19,917			513	2.57
Other Short-Term Borrowings		6,510			83	5.06			2,673			52	7.63			6,592			68	4.16			3,758			39	4.16			16,906			310	7.29			4,882			242	4.94			24,146			1,538	6.37
Subordinated Notes Payable		52,887			581	4.30			52,887			610	4.52			52,887			630	4.71			52,887			628	4.70			52,887			627	4.64			52,887			2,449	4.56			52,887			2,427	4.53
Other Long-Term Borrowings		794			11	5.57			795			11	5.55			258			3	4.31			281			3	4.80			336			5	4.72			534			28	5.31			408			20	4.77
Total Interest Bearing Liabilities		2,365,077		$	8,640	1.45	%		2,323,210		$	9,117	1.56	%		2,381,218		$	9,497	1.60	%		2,314,976		$	8,465	1.47	%		2,228,641		$	7,013	1.25	%		2,346,110		$	35,719	1.52	%		2,259,313		$	22,080	0.98	%

Other Liabilities		73,130							73,767							72,634							68,295							78,772							71,964							81,842

Total Liabilities		3,761,763							3,729,282							3,800,398							3,727,459							3,724,238							3,754,675							3,848,812
Temporary Equity		6,763							6,443							6,493							7,150							7,423							6,712							8,392

SHAREOWNERS’ EQUITY:		491,143							480,137							465,297							456,014							435,116							473,216							421,482

Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,259,669						$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,234,603						$	4,278,686

Interest Rate Spread				$	41,150	3.59	%				$	40,260	3.49	%				$	39,334	3.38	%				$	38,435	3.43	%				$	39,264	3.55	%				$	159,179	3.47	%				$	159,355	3.63	%

Interest Income and Rate Earned⁽¹⁾					49,790	5.05						49,377	5.06						48,831	4.99						46,900	4.90						46,277	4.80						194,898	5.00						181,435	4.61
Interest Expense and Rate Paid⁽²⁾					8,640	0.88						9,117	0.93						9,497	0.97						8,465	0.88						7,013	0.73						35,719	0.92						22,080	0.56

Net Interest Margin				$	41,150	4.17	%				$	40,260	4.12	%				$	39,334	4.02	%				$	38,435	4.01	%				$	39,264	4.07	%				$	159,179	4.08	%				$	159,355	4.05	%

⁽¹⁾Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
⁽²⁾Rate calculated based on average earning assets.

For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450

The MIL Network –

January 29, 2025

MIL-OSI: Sandy Spring Bancorp Announces Fourth Quarter Results

Source: GlobeNewswire (MIL-OSI)

OLNEY, Md., Jan. 28, 2025 (GLOBE NEWSWIRE) — Sandy Spring Bancorp, Inc. (Nasdaq-SASR), the parent company of Sandy Spring Bank, reported a net loss of $39.5 million ($0.87 per diluted common share) for the quarter ended December 31, 2024, compared to net income of $16.2 million ($0.36 per diluted common share) for the third quarter of 2024 and $26.1 million ($0.58 per diluted common share) for the fourth quarter of 2023. The current quarter’s net loss is a result of a $54.4 million goodwill impairment charge determined during our annual goodwill impairment test based on the terms of the merger agreement with Atlantic Union Bankshares Corporation (“AUB”). The goodwill impairment is a non-cash charge and has no impact on the Company’s regulatory capital ratios, cash flows, core operating performance or liquidity position.

The current quarter’s core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the quarter ended September 30, 2024 and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. Core earnings exclude the goodwill impairment charge, merger and acquisition expense, and the after-tax impact of amortization of intangibles, investment securities gains or losses and other non-recurring or extraordinary items. The current quarter’s increase in core earnings as compared to the linked quarter was driven by higher net interest income coupled with higher non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense. The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023.

“We are pleased with our fourth quarter results, most notably our improved net interest margin, growth in core earnings, and reductions in brokered deposits,” said Daniel J. Schrider, Chair, President and CEO of Sandy Spring Bank. “We remain focused on serving our clients and building communities in the Greater Washington region.”

Fourth Quarter Highlights

Total assets at December 31, 2024 decreased by 2% to $14.1 billion compared to $14.4 billion at September 30, 2024. This decline is predominantly driven by a $200.0 million reduction in FHLB advances and a resulting $231.4 million decline in cash and cash equivalents quarter-over-quarter.

Total loans remained level at $11.5 billion as of December 31, 2024 compared to September 30, 2024. During the current quarter, AD&C and commercial business loans and lines increased by $71.7 million and $32.2 million, respectively, while the commercial investor real estate segment declined by $88.9 million. Total residential mortgage and consumer loan portfolios increased by $19.6 million during this period.

Total deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. Interest-bearing deposits increased $106.1 million, while noninterest-bearing deposits declined $98.1 million. Growth in interest-bearing deposits was mainly experienced within interest checking accounts, which grew $122.9 million during the current quarter, while decline in noninterest-bearing deposit categories was driven by lower balances in commercial checking accounts. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and represented 94% of total deposits as of December 31, 2024.

The ratio of non-performing loans to total loans was 1.03% at December 31, 2024 compared to 1.09% at September 30, 2024 and 0.81% at December 31, 2023. The current quarter’s decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status.

Net interest income for the fourth quarter of 2024 grew $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. Compared to the previous quarter, interest income increased by $1.0 million, while interest expense decreased by $3.7 million.

The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. Compared to the linked quarter, the rate paid on interest-bearing liabilities decreased 23 basis points, driven by a 26 basis point decline in the rate on interest-bearing deposits, while the yield on interest-earning assets declined by six basis points. The decline in the rate paid on interest-bearing deposits was attributable to a 50 basis point reduction in the federal funds rate during the current quarter and the associated actions taken by management to re-price the Company’s funding base.

Provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million in the previous quarter and a credit of $2.6 million in the prior year quarter. The current quarter’s provision expense is mainly attributable to a slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of recession. In addition, during the current quarter, the provision for unfunded commitments declined by $0.2 million, a result of higher utilization rates on lines of credit.

Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The quarter-over-quarter increase was mainly due to an increase in income from bank-owned life insurance driven by one-time mortality proceeds received during the current quarter in combination with higher swap fees and higher wealth management income, which was partially offset by lower income from mortgage banking activities.

Non-interest expense for the fourth quarter of 2024 increased by $61.3 million compared to the third quarter of 2024 and $67.1 million compared to the prior year quarter, due to the goodwill impairment charge of $54.4 million incurred during the current quarter. Excluding the goodwill impairment charge, adjusted non-interest expense was $79.8 million during the current quarter compared to $72.9 million in the linked quarter. This quarterly increase in adjusted non-interest expense was primarily due to a combination of merger and acquisition expense associated with the pending merger with AUB along with higher salaries and compensation benefits, partially offset by lower professional fees and services.

We perform an annual goodwill impairment test as of October 1st of each year. During the current year, we utilized the terms incorporated in the merger agreement between the Company and AUB. The implied value of the Company utilized the stock conversion ratio in the merger agreement and used a weighted average approach to consider both AUB’s most recent closing stock price prior to the merger announcement date, as well as the forward sale price for AUB common stock under the forward sale agreement announced simultaneous with the merger agreement. This valuation method resulted in the estimated fair value of the Company being below its book value and required the recording of a goodwill impairment charge of $54.4 million.

Return on average assets (“ROA”) for the quarter ended December 31, 2024 was (1.09)% and return on average tangible common equity (“ROTCE”) was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88%, respectively, for the previous quarter and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.

The GAAP efficiency ratio was 124.61% for the fourth quarter of 2024, compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. An elevated GAAP efficiency ratio for the current quarter was the result of higher non-interest expense due to the $54.4 million goodwill impairment charge. The non-GAAP efficiency ratio was 67.16% for the fourth quarter of 2024 compared to 69.06% for the third quarter of 2024 and 66.16% for the prior year quarter.

Balance Sheet and Credit Quality

Total assets were $14.1 billion at December 31, 2024, as compared to $14.4 billion at September 30, 2024. At December 31, 2024, total loans remained stable at $11.5 billion compared to the previous quarter. During this period, the growth in AD&C and commercial business loans and lines of $71.7 million or 6% and $32.2 million or 2%, respectively, was mostly offset by the decline in commercial investor real estate loans of $88.9 million or 2%. Total residential mortgage and consumer loan portfolios increased by $19.6 million or 1%.

Deposits stayed relatively unchanged at $11.7 billion at December 31, 2024 compared to September 30, 2024. During this period, noninterest-bearing deposits decreased $98.1 million or 3%, while interest-bearing deposits increased $106.1 million or 1%. The decline in noninterest-bearing deposit categories was driven by decreases in commercial checking accounts. Growth in interest-bearing deposits was seen predominantly in interest checking accounts, which grew $122.9 million or 8% during the current quarter. Total deposits, excluding brokered deposits, increased by $32.0 million quarter-over-quarter and remained at 94% of total deposits as of December 31, 2024 compared to September 30, 2024, reflecting continued strength and stability of the core deposit base. Total uninsured deposits at December 31, 2024 were approximately 37% of total deposits.

Total borrowings decreased $201.7 million or 23% at December 31, 2024 as compared to the previous quarter, primarily driven by a $200.0 million reduction in FHLB advances, of which $150 million related to scheduled maturities, while $50 million was prepaid generating a $0.5 million gain on debt extinguishment. At December 31, 2024, available unused sources of liquidity, which consist of available FHLB borrowings, fed funds, funds through the Federal Reserve Bank’s discount window, as well as excess cash and unpledged investment securities, totaled $6.3 billion or 147% of uninsured deposits.

The tangible common equity to tangible assets ratio was 8.84% at December 31, 2024, compared to 8.83% at September 30, 2024.

At December 31, 2024, the Company had a total risk-based capital ratio of 15.38%, a common equity tier 1 risk-based capital ratio of 11.36%, a tier 1 risk-based capital ratio of 11.36%, and a tier 1 leverage ratio of 9.39%. These risk-based capital ratios compare to a total risk-based capital ratio of 15.53%, a common equity tier 1 risk-based capital ratio of 11.27%, a tier 1 risk-based capital ratio of 11.27%, and a tier 1 leverage ratio of 9.59% at September 30, 2024. All of these ratios remain well in excess of the mandated minimum regulatory requirements.

Non-performing loans include non-accrual loans and accruing loans 90 days or more past due. At December 31, 2024, non-performing loans totaled $119.4 million, compared to $125.3 million at September 30, 2024 and $91.8 million at December 31, 2023. The ratio of non-performing loans to total loans was 1.03% compared to 1.09% on a linked quarter basis. These levels of non-performing loans compare to 0.81% at December 31, 2023. The current quarter’s decline in non-performing loans was mainly related to pay downs on several non-accrual loans along with a single commercial real estate loan that returned to an accrual status based on the borrower’s historical payment performance. Total net charge-offs for the current quarter amounted to $1.7 million compared to $0.7 million for the third quarter of 2024 and net recoveries of $0.1 million for the fourth quarter of 2023.

At December 31, 2024, the allowance for credit losses was $134.4 million or 1.16% of outstanding loans and 113% of non-performing loans, compared to $131.4 million or 1.14% of outstanding loans and 105% of non-performing loans at the end of the previous quarter and $120.9 million or 1.06% of outstanding loans and 132% of non-performing loans at the end of the fourth quarter of 2023. The increase in the allowance for the current quarter compared to the previous quarter mainly reflects slight deterioration in the projected economic variables coupled with higher qualitative adjustments, partially offset by lower probability of economic recession.

Income Statement Review

Quarterly Results

Net loss was $39.5 million ($0.87 per diluted common share) for the three months ended December 31, 2024 compared to net income of $16.2 million ($0.36 per diluted common share) for the three months ended September 30, 2024 and $26.1 million ($0.58 per diluted common share) for the prior year quarter. The current quarter’s net loss is predominantly related to the $54.4 million goodwill impairment charge. The current quarter’s core earnings were $21.0 million ($0.47 per diluted common share), compared to $17.9 million ($0.40 per diluted common share) for the previous quarter and $27.1 million ($0.60 per diluted common share) for the quarter ended December 31, 2023. The increase in the current quarter’s core earnings compared to the linked quarter was driven primarily by higher net interest income and non-interest income, and lower provision for credit losses, partially offset by higher adjusted non-interest expense.

Net interest income for the fourth quarter of 2024 increased $4.7 million or 6% compared to the previous quarter and $4.4 million or 5% compared to the fourth quarter of 2023. During the current quarter, interest income increased $1.0 million, while interest expense declined $3.7 million. The higher interest rate environment during the current year was primarily responsible for a $5.4 million year-over-year increase in interest income, which outpaced the $1.0 million year-over-year growth in interest expense.

The net interest margin was 2.53% for the fourth quarter of 2024 compared to 2.44% for the third quarter of 2024 and 2.45% for the fourth quarter of 2023. The increase in the net interest margin during the current quarter was a result of a 23 basis point decrease in the rate paid on interest-bearing liabilities, driven by a 26 basis point decline in the rate paid on interest-bearing deposits, while the yield earned on interest-earning assets declined by six basis points. As compared to the prior year quarter, the yield on interest-earning assets increased eight basis points, while the rate paid on interest-bearing liabilities declined nine basis points, resulting in net interest margin increase of eight basis points.

The total provision for credit losses was $4.5 million for the fourth quarter of 2024 compared to $6.3 million for the previous quarter and a credit of $3.4 million for the fourth quarter of 2023. The provision for credit losses directly attributable to the funded loan portfolio was $4.7 million for the current quarter compared to $6.3 million for the third quarter of 2024 and a credit of $2.6 million for the fourth quarter of 2023. The current quarter’s provision is mainly a reflection of a slight deterioration in the projected economic variables along with higher qualitative adjustments, partially offset by lower probability of economic recession. In addition, during the current quarter, the reserve for unfunded commitments declined to $1.3 million from $1.5 million in the previous quarter due to higher utilization rates on lines of credit.

Non-interest income for the fourth quarter of 2024 increased by 10% or $1.9 million compared to the linked quarter and grew by 31% or $5.1 million compared to the prior year quarter. The current quarter’s increase in non-interest income as compared to the previous quarter was mainly driven by the $1.9 million increase in income from bank owned life insurance, generated by one-time mortality proceeds, $0.4 million of swap fee income, and $0.2 million increase in wealth management income, due to the overall favorable market performance, partially offset by $0.4 million decrease in income from mortgage banking activities, due to lower sales volumes.

Non-interest expense for the fourth quarter of 2024 increased $61.3 million or 84% compared to the third quarter of 2024 and $67.1 million or 100% compared to the fourth quarter of 2023. The increase over the comparative quarters was primarily due to the goodwill impairment charge of $54.4 million in the fourth quarter of 2024. Excluding the goodwill impairment charge, adjusted non-interest expense increased $6.9 million or 9% compared to the linked quarter. This quarter-over-quarter increase is predominantly attributable to $4.2 million in merger and acquisition expenses incurred during the current quarter, a $3.3 million increase in salaries and benefits, due to an increase in employee incentive compensation, and a $0.7 million increase in marketing expense. These increases were partially offset by the $1.8 million reduction in professional fees and services.

For the fourth quarter of 2024, the GAAP efficiency ratio was 124.61% compared to 72.12% for the third quarter of 2024 and 68.33% for the fourth quarter of 2023. The non-GAAP efficiency ratio was 67.16% for the current quarter as compared to 69.06% for the third quarter of 2024 and 66.16% for the fourth quarter of 2023.

ROA for the quarter ended December 31, 2024 was (1.09)% and ROTCE was 5.46% compared to 0.46% and 5.88%, respectively, for the third quarter of 2024 and 0.73% and 9.26%, respectively, for the fourth quarter of 2023. On a non-GAAP basis, the current quarter’s core ROA was 0.58% and core ROTCE was 6.80% compared to 0.50% and 5.88% for the third quarter of 2024 and 0.76% and 9.26%, respectively, for the fourth quarter of 2023.

Explanation of Non-GAAP Financial Measures

This news release contains financial information and performance measures determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

Tangible common equity and related measures are non-GAAP measures that exclude the impact of goodwill and other intangible assets.
The non-GAAP efficiency ratio excludes goodwill impairment loss, merger and acquisition expense, amortization of intangible assets, investment securities gains/(losses), pension settlement expense, severance expense, contingent payment expense, and includes tax-equivalent income.
Core earnings and the related measures of core earnings per diluted common share, core return on average assets and core return on average tangible common equity reflect net income exclusive of goodwill impairment loss, merger and acquisition expense, and after-tax impact of amortization of intangible assets, investment securities gains/(losses) and other non-recurring or extraordinary items.
Pre-tax pre-provision net income excludes income tax expense and the provision (credit) for credit losses.

These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the non-GAAP Reconciliation tables included with this release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

About Sandy Spring Bancorp, Inc.

Sandy Spring Bancorp, Inc., headquartered in Olney, Maryland, is the holding company for Sandy Spring Bank, a premier community bank in the Greater Washington, D.C. region. With over 50 locations, the bank offers a broad range of commercial and retail banking, mortgage, private banking, and trust services throughout Maryland, Virginia, and Washington, D.C. Through its subsidiaries, Rembert Pendleton Jackson and West Financial Services, Inc., Sandy Spring Bank also offers a comprehensive menu of wealth management services.

Source: Sandy Spring Bancorp, Inc.
Code: SASR-E

For additional information or questions, please contact:
	Daniel J. Schrider, Chair, President & Chief Executive Officer, or
	Charles S. Cullum, E.V.P. & Chief Financial Officer
	Sandy Spring Bancorp
	17801 Georgia Avenue
	Olney, Maryland 20832
	1-800-399-5919
	Email:	DSchrider@sandyspringbank.com
		CCullum@sandyspringbank.com

	Website:	www.sandyspringbank.com
	Media Contact:
	Jennifer E. Schell, Division Executive, Marketing & Corporate Communications
	301-774-6400 x8331
	jschell@sandyspringbank.com

Forward-Looking Statements

Sandy Spring Bancorp’s forward-looking statements are subject to significant risks and uncertainties that may cause actual results to differ materially from those in such statements. These risks and uncertainties include, but are not limited to, the risks identified in our quarterly and annual reports and the following: changes in general business and economic conditions nationally or in the markets that we serve; changes in consumer and business confidence, investor sentiment, or consumer spending or savings behavior; changes in the level of inflation; changes in the demand for loans, deposits and other financial services that we provide; the possibility that future credit losses may be higher than currently expected; the impact of the interest rate environment on our business, financial condition and results of operations; the impact of compliance with changes in laws, regulations and regulatory interpretations, including changes in income taxes; changes in credit ratings assigned to us or our subsidiaries; competitive pressures among financial services companies; the ability to attract, develop and retain qualified employees; our ability to maintain the security of our data processing and information technology systems; the impact of changes in accounting policies, including the introduction of new accounting standards; the impact of judicial or regulatory proceedings; the impact of fiscal and governmental policies of the United States federal government; the impact of health emergencies, epidemics or pandemics; the effects of climate change; and the impact of natural disasters, extreme weather events, military conflict, terrorism or other geopolitical events; the possibility that the Company’s pending merger with AUB does not close when expected or at all because required regulatory or other approvals or conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger); the risk that the benefits from the merger may not be fully realized or may take longer to realize than expected; and the risk of disruption to the Company’s business as a result of the pendency of the merger;. Sandy Spring Bancorp provides greater detail regarding some of these factors in its Form 10-K for the year ended December 31, 2023 and its Form 10-Q for the quarter ended September 30, 2024, including in the Risk Factors section of those reports, and in its other SEC reports. Sandy Spring Bancorp’s forward-looking statements may also be subject to other risks and uncertainties, including those that it may discuss elsewhere in this news release or in its filings with the SEC, accessible on the SEC’s Web site at www.sec.gov.

Sandy Spring Bancorp, Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS – UNAUDITED

	Three Months Ended December 31,						% Change		Year Ended December 31,						% Change
(Dollars in thousands, except per share data)		2024			2023		% Change			2024			2023		% Change
Results of operations:
Net interest income	$	86,086		$	81,696		5	%	$	327,126		$	354,550		(8	)%
Provision/ (credit) for credit losses		4,468			(3,445	)	N/M			14,192			(17,561	)	N/M
Non-interest income		21,646			16,560		31			79,315			67,078		18
Non-interest expense		134,241			67,142		100			343,288			275,054		25
Income/ (loss) before income tax expense		(30,977	)		34,559		N/M			48,961			164,135		(70	)
Net income/ (loss)		(39,453	)		26,100		N/M			19,935			122,844		(84	)

Net income/ (loss) attributable to common shareholders	$	(39,457	)	$	26,066		N/M		$	19,902		$	122,621		(84	)
Pre-tax pre-provision net income/ (loss) ⁽¹⁾	$	(26,509	)	$	31,114		N/M		$	63,153		$	146,574		(57	)

Return on average assets		(1.09	)%		0.73	%				0.14	%		0.87	%
Return on average common equity		(9.70	)%		6.70	%				1.25	%		8.04	%
Return on average tangible common equity ⁽¹⁾		5.46	%		9.26	%				6.73	%		11.06	%
Net interest margin		2.53	%		2.45	%				2.46	%		2.67	%
Efficiency ratio – GAAP basis ⁽²⁾		124.61	%		68.33	%				84.46	%		65.24	%
Efficiency ratio – Non-GAAP basis ⁽²⁾		67.16	%		66.16	%				67.07	%		60.99	%

Per share data:
Basic net income/ (loss) per common share	$	(0.87	)	$	0.58		N/M		$	0.44		$	2.74		(84	)%
Diluted net income/ (loss) per common share	$	(0.87	)	$	0.58		N/M		$	0.44		$	2.73		(84	)
Weighted average diluted common shares		45,133,834			45,009,574		—			45,227,487			44,947,263		1
Dividends declared per share	$	0.34		$	0.34		—		$	1.36		$	1.36		—
Book value per common share	$	34.51		$	35.36		(2	)	$	34.51		$	35.36		(2	)
Tangible book value per common share ⁽¹⁾	$	26.99		$	26.64		1		$	26.99		$	26.64		1
Outstanding common shares		45,140,417			44,913,561		1			45,140,417			44,913,561		1

Financial condition at period-end:
Investment securities	$	1,418,244		$	1,414,453		—	%	$	1,418,244		$	1,414,453		—	%
Loans		11,537,966			11,366,989		2			11,537,966			11,366,989		2
Assets		14,127,480			14,028,172		1			14,127,480			14,028,172		1
Deposits		11,745,665			10,996,538		7			11,745,665			10,996,538		7
Stockholders’ equity		1,558,011			1,588,142		(2	)		1,558,011			1,588,142		(2	)

Capital ratios:
Tier 1 leverage ⁽³⁾		9.39	%		9.51	%				9.39	%		9.51	%
Common equity tier 1 capital to risk-weighted assets ⁽³⁾		11.36	%		10.90	%				11.36	%		10.90	%
Tier 1 capital to risk-weighted assets ⁽³⁾		11.36	%		10.90	%				11.36	%		10.90	%
Total regulatory capital to risk-weighted assets ⁽³⁾		15.38	%		14.92	%				15.38	%		14.92	%
Tangible common equity to tangible assets ⁽⁴⁾		8.84	%		8.77	%				8.84	%		8.77	%
Average equity to average assets		11.26	%		10.97	%				11.31	%		10.87	%

Credit quality ratios:
Allowance for credit losses to loans		1.16	%		1.06	%				1.16	%		1.06	%
Non-performing loans to total loans		1.03	%		0.81	%				1.03	%		0.81	%
Non-performing assets to total assets		0.87	%		0.65	%				0.87	%		0.65	%
Allowance for credit losses to non-performing loans		112.59	%		131.59	%				112.59	%		131.59	%
Annualized net charge-offs/ (recoveries) to average loans ⁽⁵⁾		0.06	%		—	%				0.03	%		0.01	%

N/M – not meaningful

(1)	Represents a non-GAAP measure.
(2)	The efficiency ratio – GAAP basis is non-interest expense divided by net interest income plus non-interest income from the Condensed Consolidated Statements of Income. The traditional efficiency ratio – Non-GAAP basis excludes goodwill impairment loss, merger and acquisition expense, intangible asset amortization, pension settlement expense, severance expense and contingent payment expense from non-interest expense; and investment securities gains/ (losses) from non-interest income; and adds the tax-equivalent adjustment to net interest income. See the Reconciliation Table included with these Financial Highlights.
(3)	Estimated ratio at December 31, 2024.
(4)	The tangible common equity to tangible assets ratio is a non-GAAP ratio that divides assets excluding goodwill and other intangible assets into stockholders’ equity after deducting goodwill and other intangible assets. See the Reconciliation Table included with these Financial Highlights.
(5)	Calculation utilizes average loans, excluding residential mortgage loans held-for-sale.

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE – UNAUDITED (CONTINUED)
OPERATING EARNINGS – METRICS

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands)		2024			2023			2024			2023
Core earnings (non-GAAP):
Net income/ (loss) (GAAP)	$	(39,453	)	$	26,100		$	19,935		$	122,844
Plus/ (less) non-GAAP adjustments:
Merger, acquisition and disposal expense⁽²⁾		4,164			—			4,164			—
Amortization of intangible assets (net of tax)⁽¹⁾		1,937			1,047			6,801			3,898
Goodwill impairment loss⁽²⁾		54,391			—			54,391			—
Severance expense (net of tax)⁽¹⁾		—			—			—			1,445
Pension settlement expense (net of tax)⁽¹⁾		—			—			—			6,088
Investment securities gains/ losses		—			—			—			—
Contingent payment expense (net of tax)⁽¹⁾		—			—			—			27
Core earnings (Non-GAAP)	$	21,039		$	27,147		$	85,291		$	134,302

Core earnings per diluted common share (non-GAAP):
Weighted average common shares outstanding – diluted (GAAP)		45,133,834			45,009,574			45,227,487			44,947,263

Earnings/ (loss) per diluted common share (GAAP)	$	(0.87	)	$	0.58		$	0.44		$	2.73
Core earnings per diluted common share (non-GAAP)	$	0.47		$	0.60		$	1.89		$	2.99

Core return on average assets (non-GAAP):
Average assets (GAAP)	$	14,362,321		$	14,090,423		$	14,129,795		$	14,055,645

Return on average assets (GAAP)		(1.09	)%		0.73	%		0.14	%		0.87	%
Core return on average assets (non-GAAP)		0.58	%		0.76	%		0.60	%		0.96	%

Return/ Core return on average tangible common equity (non-GAAP):
Net Income/ (loss) (GAAP)	$	(39,453	)	$	26,100		$	19,935		$	122,844
Plus: Amortization of intangible assets (net of tax)⁽¹⁾		1,937			1,047			6,801			3,898
Plus: Goodwill impairment loss⁽²⁾		54,391			—			54,391			—
Net income adjusted (non-GAAP)	$	16,875		$	27,147		$	81,127		$	126,742

Average total stockholders’ equity (GAAP)	$	1,617,633		$	1,546,312		$	1,597,456		$	1,528,242
Average goodwill		(356,341	)		(363,436	)		(361,653	)		(363,436	)
Average other intangible assets, net		(30,885	)		(20,162	)		(30,178	)		(18,596	)
Average tangible common equity (non-GAAP)	$	1,230,407		$	1,162,714		$	1,205,625		$	1,146,210

Return on average tangible common equity (non-GAAP)		5.46	%		9.26	%		6.73	%		11.06	%
Core return on average tangible common equity (non-GAAP)		6.80	%		9.26	%		7.07	%		11.72	%

(1)	Tax adjustments have been determined using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively.
(2)	Adjustment is not tax-effected as it represents a tax nondeductible item.

Sandy Spring Bancorp, Inc. and Subsidiaries
RECONCILIATION TABLE – UNAUDITED

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands)		2024			2023			2024			2023
Pre-tax pre-provision net income:
Net income/ (loss) (GAAP)	$	(39,453	)	$	26,100		$	19,935		$	122,844
Plus/ (less) non-GAAP adjustments:
Income tax expense		8,476			8,459			29,026			41,291
Provision/ (credit) for credit losses		4,468			(3,445	)		14,192			(17,561	)
Pre-tax pre-provision net income/ (loss) (non-GAAP)	$	(26,509	)	$	31,114		$	63,153		$	146,574

Efficiency ratio (GAAP):
Non-interest expense	$	134,241		$	67,142		$	343,288		$	275,054

Net interest income plus non-interest income	$	107,732		$	98,256		$	406,441		$	421,628

Efficiency ratio (GAAP)		124.61	%		68.33	%		84.46	%		65.24	%

Efficiency ratio (Non-GAAP):
Non-interest expense	$	134,241		$	67,142		$	343,288		$	275,054
Less non-GAAP adjustments:
Amortization of intangible assets		2,599			1,403			9,126			5,223
Merger, acquisition and disposal expense		4,164			—			4,164			—
Goodwill impairment loss		54,391			—			54,391			—
Severance expense		—			—			—			1,939
Pension settlement expense		—			—			—			8,157
Contingent payment expense		—			—			—			36
Non-interest expense – as adjusted	$	73,087		$	65,739		$	275,607		$	259,699

Net interest income plus non-interest income	$	107,732		$	98,256		$	406,441		$	421,628
Plus non-GAAP adjustment:
Tax-equivalent income		1,100			1,113			4,459			4,157
Less/ (plus) non-GAAP adjustment:
Investment securities gains/ (losses)		—			—			—			—
Net interest income plus non-interest income – as adjusted	$	108,832		$	99,369		$	410,900		$	425,785

Efficiency ratio (Non-GAAP)		67.16	%		66.16	%		67.07	%		60.99	%

Tangible common equity ratio:
Total stockholders’ equity	$	1,558,011		$	1,588,142		$	1,558,011		$	1,588,142
Goodwill		(309,045	)		(363,436	)		(309,045	)		(363,436	)
Other intangible assets, net		(30,748	)		(28,301	)		(30,748	)		(28,301	)
Tangible common equity	$	1,218,218		$	1,196,405		$	1,218,218		$	1,196,405

Total assets	$	14,127,480		$	14,028,172		$	14,127,480		$	14,028,172
Goodwill		(309,045	)		(363,436	)		(309,045	)		(363,436	)
Other intangible assets, net		(30,748	)		(28,301	)		(30,748	)		(28,301	)
Tangible assets	$	13,787,687		$	13,636,435		$	13,787,687		$	13,636,435

Tangible common equity ratio		8.84	%		8.77	%		8.84	%		8.77	%

Outstanding common shares		45,140,417			44,913,561			45,140,417			44,913,561
Tangible book value per common share	$	26.99		$	26.64		$	26.99		$	26.64

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION – UNAUDITED

(Dollars in thousands)	December 31, 2024			December 31, 2023
Assets
Cash and due from banks	$	80,698		$	82,257
Federal funds sold		—			245
Interest-bearing deposits with banks		438,265			463,396
Cash and cash equivalents		518,963			545,898
Residential mortgage loans held for sale (at fair value)		22,757			10,836
SBA loans held for sale		715			—
Investments held-to-maturity (fair values of $177,854 and $200,411 at December 31, 2024 and December 31, 2023, respectively)		215,747			236,165
Investments available-for-sale (at fair value)		1,140,783			1,102,681
Other investments, at cost		61,714			75,607
Total loans		11,537,966			11,366,989
Less: allowance for credit losses – loans		(134,401	)		(120,865	)
Net loans		11,403,565			11,246,124
Premises and equipment, net		55,998			59,490
Other real estate owned		3,265			—
Accrued interest receivable		45,627			46,583
Goodwill		309,045			363,436
Other intangible assets, net		30,748			28,301
Other assets		318,553			313,051
Total assets	$	14,127,480		$	14,028,172

Liabilities
Noninterest-bearing deposits	$	2,804,930		$	2,914,161
Interest-bearing deposits		8,940,735			8,082,377
Total deposits		11,745,665			10,996,538
Securities sold under retail repurchase agreements		68,911			75,032
Federal Reserve Bank borrowings		—			300,000
Advances from FHLB		250,000			550,000
Subordinated debt		371,400			370,803
Total borrowings		690,311			1,295,835
Accrued interest payable and other liabilities		133,493			147,657
Total liabilities		12,569,469			12,440,030

Stockholders’ equity
Common stock — par value $1.00; shares authorized 100,000,000; shares issued and outstanding 45,140,417 and 44,913,561 at December 31, 2024 and December 31, 2023, respectively.		45,140			44,914
Additional paid in capital		748,905			742,243
Retained earnings		856,613			898,316
Accumulated other comprehensive loss		(92,647	)		(97,331	)
Total stockholders’ equity		1,558,011			1,588,142
Total liabilities and stockholders’ equity	$	14,127,480		$	14,028,172

Sandy Spring Bancorp, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands, except per share data)		2024			2023			2024		2023
Interest income:
Interest and fees on loans	$	153,262		$	148,655		$	609,571	$	579,960
Interest on mortgage loans held for sale		249			199			1,050		896
Interest on SBA loans held for sale		21			—			23		—
Interest on deposits with banks		7,997			8,456			25,398		22,435
Interest and dividend income on investment securities:
Taxable		7,821			6,454			29,140		26,992
Tax-advantaged		1,697			1,848			7,082		7,224
Interest on federal funds sold		—			4			8		17
Total interest income		171,047			165,616			672,272		637,524
Interest expense:
Interest on deposits		76,111			69,813			303,173		225,028
Interest on retail repurchase agreements and federal funds purchased		369			4,075			5,259		14,452
Interest on advances from FHLB		3,865			6,086			20,259		27,709
Interest on subordinated debt		4,616			3,946			16,455		15,785
Total interest expense		84,961			83,920			345,146		282,974
Net interest income		86,086			81,696			327,126		354,550
Provision/ (credit) for credit losses		4,468			(3,445	)		14,192		(17,561	)
Net interest income after provision/ (credit) for credit losses		81,618			85,141			312,934		372,111
Non-interest income:
Service charges on deposit accounts		2,998			2,749			11,763		10,447
Mortgage banking activities		1,091			792			5,615		5,536
Wealth management income		10,920			9,219			42,071		36,633
Income from bank owned life insurance		3,213			1,207			7,496		4,210
Bank card fees		457			454			1,750		1,769
Other income		2,967			2,139			10,620		8,483
Total non-interest income		21,646			16,560			79,315		67,078
Non-interest expense:
Salaries and employee benefits		44,309			35,482			159,858		160,192
Occupancy expense of premises		4,727			4,558			19,005		18,778
Equipment expenses		4,252			3,987			15,924		15,675
Marketing		2,013			1,242			5,363		5,103
Outside data services		3,228			3,000			12,642		11,186
FDIC insurance		2,761			2,615			11,396		9,461
Amortization of intangible assets		2,599			1,403			9,126		5,223
Merger, acquisition and disposal expense		4,164			—			4,164		—
Professional fees and services		4,805			5,628			21,208		17,982
Goodwill impairment loss		54,391			—			54,391		—
Other expenses		6,992			9,227			30,211		31,454
Total non-interest expense		134,241			67,142			343,288		275,054
Income/ (loss) before income tax expense		(30,977	)		34,559			48,961		164,135
Income tax expense		8,476			8,459			29,026		41,291
Net income/ (loss)	$	(39,453	)	$	26,100		$	19,935	$	122,844

Net income per share amounts:
Basic net income/ (loss) per common share	$	(0.87	)	$	0.58		$	0.44	$	2.74
Diluted net income/ (loss) per common share	$	(0.87	)	$	0.58		$	0.44	$	2.73
Dividends declared per share	$	0.34		$	0.34		$	1.36	$	1.36

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

		2024												2023
(Dollars in thousands, except per share data)	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Profitability for the quarter:
Tax-equivalent interest income	$	172,147		$	171,219		$	166,252		$	167,113		$	166,729		$	163,479		$	159,156		$	152,317
Interest expense		84,961			88,686			84,828			86,671			83,920			77,330			67,679			54,045
Tax-equivalent net interest income		87,186			82,533			81,424			80,442			82,809			86,149			91,477			98,272
Tax-equivalent adjustment		1,100			1,121			1,139			1,099			1,113			1,068			1,006			970
Provision/ (credit) for credit losses		4,468			6,316			1,020			2,388			(3,445	)		2,365			5,055			(21,536	)
Non-interest income		21,646			19,715			19,587			18,367			16,560			17,391			17,176			15,951
Non-interest expense		134,241			72,937			68,104			68,006			67,142			72,471			69,136			66,305
Income/ (loss) before income tax expense		(30,977	)		21,874			30,748			27,316			34,559			27,636			33,456			68,484
Income tax expense		8,476			5,665			7,941			6,944			8,459			6,890			8,711			17,231
Net income/ (loss)	$	(39,453	)	$	16,209		$	22,807		$	20,372		$	26,100		$	20,746		$	24,745		$	51,253
GAAP financial performance:
Return on average assets	(1.09)%				0.46	%		0.66	%		0.58	%		0.73	%		0.58	%		0.70	%		1.49	%
Return on average common equity	(9.70)%				4.01	%		5.81	%		5.17	%		6.70	%		5.35	%		6.46	%		13.93	%
Return on average tangible common equity		5.46	%		5.88	%		8.27	%		7.39	%		9.26	%		7.42	%		8.93	%		19.10	%
Net interest margin		2.53	%		2.44	%		2.46	%		2.41	%		2.45	%		2.55	%		2.73	%		2.99	%
Efficiency ratio – GAAP basis		124.61	%		72.12	%		68.19	%		69.60	%		68.33	%		70.72	%		64.22	%		58.55	%
Non-GAAP financial performance:
Pre-tax pre-provision net income/ (loss)	$	(26,509	)	$	28,190		$	31,768		$	29,704		$	31,114		$	30,001		$	38,511		$	46,948
Core after-tax earnings	$	21,039		$	17,936		$	24,400		$	21,916		$	27,147		$	27,766		$	27,136		$	52,253
Core return on average assets		0.58	%		0.50	%		0.70	%		0.63	%		0.76	%		0.78	%		0.77	%		1.52	%
Core return on average common equity		5.17	%		4.44	%		6.21	%		5.56	%		6.97	%		7.16	%		7.09	%		14.20	%
Core return on average tangible common equity		6.80	%		5.88	%		8.27	%		7.39	%		9.26	%		9.51	%		9.43	%		19.11	%
Core earnings per diluted common share	$	0.47		$	0.40		$	0.54		$	0.49		$	0.60		$	0.62		$	0.60		$	1.16
Efficiency ratio – Non-GAAP basis		67.16	%		69.06	%		65.31	%		66.73	%		66.16	%		60.91	%		60.68	%		56.87	%
Per share data:
Net income/ (loss) attributable to common shareholders	$	(39,457	)	$	16,205		$	22,800		$	20,346		$	26,066		$	20,719		$	24,712		$	51,084
Basic net income/ (loss) per common share	$	(0.87	)	$	0.36		$	0.51		$	0.45		$	0.58		$	0.46		$	0.55		$	1.14
Diluted net income/ (loss) per common share	$	(0.87	)	$	0.36		$	0.51		$	0.45		$	0.58		$	0.46		$	0.55		$	1.14
Weighted average diluted common shares		45,133,834			45,242,920			45,145,214			45,086,471			45,009,574			44,960,455			44,888,759			44,872,582
Dividends declared per share	$	0.34		$	0.34		$	0.34		$	0.34		$	0.34		$	0.34		$	0.34		$	0.34
Non-interest income:
Service charges on deposit accounts		2,998			3,009			2,939			2,817			2,749			2,704			2,606			2,388
Mortgage banking activities		1,091			1,529			1,621			1,374			792			1,682			1,817			1,245
Wealth management income		10,920			10,738			10,455			9,958			9,219			9,391			9,031			8,992
Income from bank owned life insurance		3,213			1,307			1,816			1,160			1,207			845			1,251			907
Bank card fees		457			435			445			413			454			450			447			418
Other income		2,967			2,697			2,311			2,645			2,139			2,319			2,024			2,001
Total non-interest income	$	21,646		$	19,715		$	19,587		$	18,367		$	16,560		$	17,391		$	17,176		$	15,951
Non-interest expense:
Salaries and employee benefits	$	44,309		$	41,030		$	37,821		$	36,698		$	35,482		$	44,853		$	40,931		$	38,926
Occupancy expense of premises		4,727			4,657			4,805			4,816			4,558			4,609			4,764			4,847
Equipment expenses		4,252			3,841			3,868			3,963			3,987			3,811			3,760			4,117
Marketing		2,013			1,320			1,288			742			1,242			729			1,589			1,543
Outside data services		3,228			3,025			3,286			3,103			3,000			2,819			2,853			2,514
FDIC insurance		2,761			2,773			2,951			2,911			2,615			2,333			2,375			2,138
Amortization of intangible assets		2,599			2,323			2,135			2,069			1,403			1,245			1,269			1,306
Merger, acquisition and disposal expense		4,164			—			—			—			—			—			—			—
Professional fees and services		4,805			6,577			4,946			4,880			5,628			4,509			4,161			3,684
Goodwill impairment loss		54,391			—			—			—			—			—			—			—
Other expenses		6,992			7,391			7,004			8,824			9,227			7,563			7,434			7,230
Total non-interest expense	$	134,241		$	72,937		$	68,104		$	68,006		$	67,142		$	72,471		$	69,136		$	66,305

Sandy Spring Bancorp, Inc. and Subsidiaries
HISTORICAL TRENDS – QUARTERLY FINANCIAL DATA – UNAUDITED

		2024												2023
(Dollars in thousands, except per share data)	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Balance sheets at quarter end:
Commercial investor real estate loans	$	4,779,593		$	4,868,467		$	4,933,329		$	4,997,879		$	5,104,425		$	5,137,694		$	5,131,210		$	5,167,456
Commercial owner-occupied real estate loans		1,748,772			1,737,327			1,747,708			1,741,113			1,755,235			1,760,384			1,770,135			1,769,928
Commercial AD&C loans		1,327,292			1,255,609			1,184,296			1,090,259			988,967			938,673			1,045,742			1,046,665
Commercial business loans		1,653,135			1,620,926			1,601,510			1,509,592			1,504,880			1,454,709			1,423,614			1,437,478
Residential mortgage loans		1,537,589			1,529,786			1,521,890			1,511,624			1,474,521			1,432,051			1,385,743			1,328,524
Residential construction loans		49,028			53,639			78,027			97,685			121,419			160,345			190,690			223,456
Consumer loans		442,557			426,167			417,161			416,132			417,542			416,436			422,505			421,734
Total loans		11,537,966			11,491,921			11,483,921			11,364,284			11,366,989			11,300,292			11,369,639			11,395,241
Allowance for credit losses – loans		(134,401	)		(131,428	)		(125,863	)		(123,096	)		(120,865	)		(123,360	)		(120,287	)		(117,613	)
Residential mortgage loans held for sale		22,757			21,489			18,961			16,627			10,836			19,235			21,476			16,262
SBA loans held for sale		715			425			—			—			—			—			—			—
Investment securities		1,418,244			1,440,488			1,401,511			1,405,490			1,414,453			1,392,078			1,463,554			1,528,336
Total assets		14,127,480			14,383,073			14,008,343			13,888,133			14,028,172			14,135,085			13,994,545			14,129,007
Noninterest-bearing demand deposits		2,804,930			2,903,063			2,931,405			2,817,928			2,914,161			3,013,905			3,079,896			3,228,678
Total deposits		11,745,665			11,737,694			11,340,228			11,227,200			10,996,538			11,151,012			10,958,922			11,075,991
Customer repurchase agreements		68,911			70,767			75,038			71,529			75,032			66,581			74,510			47,627
Total stockholders’ equity		1,558,011			1,628,837			1,599,004			1,589,364			1,588,142			1,537,914			1,539,032			1,536,865
Quarterly average balance sheets:
Commercial investor real estate loans	$	4,825,594		$	4,874,003		$	4,964,406		$	5,057,334		$	5,125,028		$	5,125,459		$	5,146,632		$	5,136,204
Commercial owner-occupied real estate loans		1,739,686			1,741,663			1,734,106			1,746,042			1,755,048			1,769,717			1,773,039			1,769,680
Commercial AD&C loans		1,300,966			1,253,035			1,133,506			1,030,763			960,646			995,682			1,057,205			1,082,791
Commercial business loans		1,606,641			1,579,001			1,551,798			1,508,336			1,433,035			1,442,518			1,441,489			1,444,588
Residential mortgage loans		1,535,924			1,526,445			1,518,748			1,491,277			1,451,614			1,406,929			1,353,809			1,307,761
Residential construction loans		47,788			64,684			86,638			110,456			142,325			174,204			211,590			223,313
Consumer loans		433,185			421,003			417,206			417,539			419,299			421,189			423,306			424,122
Total loans		11,489,784			11,459,834			11,406,408			11,361,747			11,286,995			11,335,698			11,407,070			11,388,459
Residential mortgage loans held for sale		13,768			19,889			14,497			8,142			10,132			13,714			17,480			8,324
SBA loans held for sale		591			65			—			—			—			—			—
Investment securities		1,542,401			1,531,378			1,538,624			1,536,127			1,544,173			1,589,342			1,639,324			1,679,593
Interest-earning assets		13,713,618			13,474,697			13,292,995			13,411,810			13,462,583			13,444,117			13,423,589			13,316,165
Total assets		14,362,321			14,136,037			13,956,261			14,061,935			14,090,423			14,086,342			14,094,653			13,949,276
Noninterest-bearing demand deposits		2,813,545			2,783,906			2,790,620			2,730,295			2,958,254			3,041,101			3,137,971			3,480,433
Total deposits		11,807,983			11,483,524			11,245,476			11,086,145			11,089,587			11,076,724			10,928,038			11,049,991
Customer repurchase agreements		65,253			63,436			62,161			72,836			66,622			67,298			58,382			60,626
Total interest-bearing liabilities		9,792,134			9,600,905			9,441,015			9,583,074			9,418,666			9,332,617			9,257,652			8,806,720
Total stockholders’ equity		1,617,633			1,607,377			1,579,582			1,584,902			1,546,312			1,538,553			1,535,465			1,491,929
Financial measures:
Average equity to average assets		11.26	%		11.37	%		11.32	%		11.27	%		10.97	%		10.92	%		10.89	%		10.70	%
Average investment securities to average earning assets		11.25	%		11.36	%		11.57	%		11.45	%		11.47	%		11.82	%		12.21	%		12.61	%
Average loans to average earning assets		83.78	%		85.05	%		85.81	%		84.71	%		83.84	%		84.32	%		84.98	%		85.52	%
Loans to assets		81.67	%		79.90	%		81.98	%		81.83	%		81.03	%		79.94	%		81.24	%		80.65	%
Loans to deposits		98.23	%		97.91	%		101.27	%		101.22	%		103.37	%		101.34	%		103.75	%		102.88	%
Assets under management	$	6,577,150		$	6,567,752		$	6,215,697		$	6,165,509		$	5,999,520		$	5,536,499		$	5,742,888		$	5,477,560
Capital measures:
Tier 1 leverage⁽¹⁾		9.39	%		9.59	%		9.70	%		9.56	%		9.51	%		9.50	%		9.42	%		9.44	%
Common equity tier 1 capital to risk-weighted assets⁽¹⁾		11.36	%		11.27	%		11.28	%		10.96	%		10.90	%		10.83	%		10.65	%		10.53	%
Tier 1 capital to risk-weighted assets⁽¹⁾		11.36	%		11.27	%		11.28	%		10.96	%		10.90	%		10.83	%		10.65	%		10.53	%
Total regulatory capital to risk-weighted assets⁽¹⁾		15.38	%		15.53	%		15.49	%		15.05	%		14.92	%		14.85	%		14.60	%		14.43	%
Book value per common share	$	34.51		$	36.10		$	35.45		$	35.37		$	35.36		$	34.26		$	34.31		$	34.37
Outstanding common shares		45,140,417			45,125,078			45,109,671			44,940,147			44,913,561			44,895,158			44,862,369			44,712,497

(1)	Estimated ratio at December 31, 2024.

Sandy Spring Bancorp, Inc. and Subsidiaries
LOAN PORTFOLIO QUALITY DETAIL – UNAUDITED

		2024								2023
(Dollars in thousands)	December 31,		September 30,		June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
Non-performing assets:
Loans 90 days past due:
Commercial real estate:
Commercial investor real estate	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	215
Commercial owner-occupied real estate		—		—		—		—		—		—		—		—
Commercial AD&C		—		—		—		—		—		—		—		—
Commercial business		—		—		—		20		20		415		29		3,002
Residential real estate:
Residential mortgage		232		399		338		340		342		—		692		352
Residential construction		—		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—		—
Total loans 90 days past due		232		399		338		360		362		415		721		3,569
Non-accrual loans:
Commercial real estate:
Commercial investor real estate		58,071		57,578		55,498		55,579		58,658		20,108		20,381		15,451
Commercial owner-occupied real estate		7,008		9,639		9,403		4,394		4,640		4,744		4,846		4,949
Commercial AD&C		31,314		31,816		2,127		556		1,259		1,422		569		—
Commercial business		7,590		9,044		8,455		7,164		10,051		9,671		9,393		9,443
Residential real estate:
Residential mortgage		10,939		11,996		12,228		11,835		12,332		10,766		10,153		8,935
Residential construction		521		539		539		542		443		449		—		—
Consumer		3,697		4,258		4,400		4,011		4,102		4,187		3,396		4,900
Total non-accrual loans		119,140		124,870		92,650		84,081		91,485		51,347		48,738		43,678
Total non-performing loans		119,372		125,269		92,988		84,441		91,847		51,762		49,459		47,247
Other real estate owned (OREO)		3,265		3,265		2,700		2,700		—		261		611		645
Total non-performing assets	$	122,637	$	128,534	$	95,688	$	87,141	$	91,847	$	52,023	$	50,070	$	47,892

	For the Quarter Ended,
(Dollars in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			z	September 30, 2023			June 30, 2023			March 31, 2023
Analysis of non-accrual loan activity:
Balance at beginning of period	$	124,870		$	92,650		$	84,081		$	91,485		$	51,347			$	48,738		$	43,678		$	34,782
Non-accrual balances transferred to OREO		—			(565	)		—			(2,700	)		—				—			—			—
Non-accrual balances charged-off		(1,698	)		(787	)		—			(1,550	)		—				(183	)		(2,049	)		(126	)
Net payments or draws		(5,065	)		(3,095	)		(1,427	)		(4,017	)		(7,619	)			(1,545	)		(1,654	)		(10,212	)
Loans placed on non-accrual		2,847			36,667			10,038			1,490			47,920				4,967			9,276			19,714
Non-accrual loans brought current		(1,814	)		—			(42	)		(627	)		(163	)			(630	)		(513	)		(480	)
Balance at end of period	$	119,140		$	124,870		$	92,650		$	84,081		$	91,485			$	51,347		$	48,738		$	43,678

Analysis of allowance for credit losses – loans:
Balance at beginning of period	$	131,428		$	125,863		$	123,096		$	120,865		$	123,360			$	120,287		$	117,613		$	136,242
Provision/ (credit) for credit losses – loans		4,653			6,310			2,961			3,331			(2,574	)			3,171			4,454			(18,945	)
Less loans charged-off, net of recoveries:
Commercial real estate:
Commercial investor real estate		(3	)		397			(3	)		(2	)		(3	)			(3	)		(14	)		(5	)
Commercial owner-occupied real estate		(30	)		(27	)		(27	)		(27	)		(27	)			(25	)		(27	)		(26	)
Commercial AD&C		(23	)		111			(23	)		(283	)		—				—			—			—
Commercial business		1,656			250			(28	)		1,550			(105	)			15			363			(127	)
Residential real estate:
Residential mortgage		(7	)		(35	)		39			(6	)		(6	)			(4	)		35			21
Residential construction		—			—			—			—			—				—			—			—
Consumer		87			49			236			(132	)		62				115			1,423			(179	)
Net charge-offs/ (recoveries)		1,680			745			194			1,100			(79	)			98			1,780			(316	)
Balance at the end of period	$	134,401		$	131,428		$	125,863		$	123,096		$	120,865			$	123,360		$	120,287		$	117,613

Asset quality ratios:
Non-performing loans to total loans		1.03	%		1.09	%		0.81	%		0.74	%		0.81	%			0.46	%		0.44	%		0.41	%
Non-performing assets to total assets		0.87	%		0.89	%		0.68	%		0.63	%		0.65	%			0.37	%		0.36	%		0.34	%
Allowance for credit losses to total loans		1.16	%		1.14	%		1.10	%		1.08	%		1.06	%			1.09	%		1.06	%		1.03	%
Allowance for credit losses to non-performing loans		112.59	%		104.92	%		135.35	%		145.78	%		131.59	%			238.32	%		243.21	%		248.93	%
Annualized net charge-offs/ (recoveries) to average loans		0.06	%		0.03	%		0.01	%		0.04	%		—	%			—	%		0.06	%		(0.01	)%

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

	Three Months Ended December 31,
		2024							2023
(Dollars in thousands and tax-equivalent)	Average Balances			Interest ⁽¹⁾		Annualized Average Yield/Rate		Average Balances			Interest ⁽¹⁾		Annualized Average Yield/Rate
Assets
Commercial investor real estate loans	$	4,825,594		$	57,898	4.77	%	$	5,125,028		$	60,909	4.72	%
Commercial owner-occupied real estate loans		1,739,686			21,497	4.92			1,755,048			21,011	4.75
Commercial AD&C loans		1,300,966			24,303	7.43			960,646			20,510	8.47
Commercial business loans		1,606,641			26,374	6.53			1,433,035			23,822	6.60
Total commercial loans		9,472,887			130,072	5.46			9,273,757			126,252	5.40
Residential mortgage loans		1,535,924			14,676	3.82			1,451,614			12,984	3.58
Residential construction loans		47,788			672	5.59			142,325			1,515	4.22
Consumer loans		433,185			8,496	7.80			419,299			8,543	8.08
Total residential and consumer loans		2,016,897			23,844	4.72			2,013,238			23,042	4.56
Total loans ⁽²⁾		11,489,784			153,916	5.33			11,286,995			149,294	5.25
Residential mortgage loans held for sale		13,768			249	7.24			10,132			199	7.86
SBA loans held for sale		591			21	14.50			—			—	—
Taxable securities		1,214,327			7,821	2.58			1,193,408			6,454	2.16
Tax-advantaged securities		328,074			2,143	2.61			350,765			2,322	2.64
Total investment securities ⁽³⁾		1,542,401			9,964	2.58			1,544,173			8,776	2.27
Interest-bearing deposits with banks		667,074			7,997	4.77			621,007			8,456	5.40
Federal funds sold		—			—	—			276			4	5.43
Total interest-earning assets		13,713,618			172,147	5.00			13,462,583			166,729	4.92

Less: allowance for credit losses – loans		(131,565	)						(121,851	)
Cash and due from banks		77,280							89,143
Premises and equipment, net		56,925							69,162
Other assets		646,063							591,386
Total assets	$	14,362,321						$	14,090,423

Liabilities and Stockholders’ Equity
Interest-bearing demand deposits	$	1,519,835		$	6,510	1.70	%	$	1,474,748		$	5,612	1.51	%
Regular savings deposits		1,763,353			13,768	3.11			1,153,610			9,715	3.34
Money market savings deposits		3,116,359			26,657	3.40			2,697,930			24,456	3.60
Time deposits		2,594,891			29,176	4.47			2,805,045			30,030	4.25
Total interest-bearing deposits		8,994,438			76,111	3.37			8,131,333			69,813	3.41
Repurchase agreements		65,253			327	2.00			66,622			354	2.11
Federal funds purchased and Federal Reserve Bank borrowings		3,525			42	4.69			300,000			3,721	4.92
Advances from FHLB		357,609			3,865	4.30			550,000			6,086	4.39
Subordinated debt		371,309			4,616	4.97			370,711			3,946	4.26
Total borrowings		797,696			8,850	4.41			1,287,333			14,107	4.35
Total interest-bearing liabilities		9,792,134			84,961	3.45			9,418,666			83,920	3.54

Noninterest-bearing demand deposits		2,813,545							2,958,254
Other liabilities		139,009							167,191
Stockholders’ equity		1,617,633							1,546,312
Total liabilities and stockholders’ equity	$	14,362,321						$	14,090,423

Tax-equivalent net interest income and spread				$	87,186	1.55	%				$	82,809	1.38	%
Less: tax-equivalent adjustment					1,100							1,113
Net interest income				$	86,086						$	81,696

Interest income/earning assets						5.00	%						4.92	%
Interest expense/earning assets						2.47							2.47
Net interest margin						2.53	%						2.45	%

(1)	Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $1.1 million and $1.1 million in 2024 and 2023, respectively.
(2)	Non-accrual loans are included in the average balances.
(3)	Available-for-sale investments are presented at amortized cost.

Sandy Spring Bancorp, Inc. and Subsidiaries
CONSOLIDATED AVERAGE BALANCES, YIELDS AND RATES – UNAUDITED

	Year Ended December 31,
		2024							2023
(Dollars in thousands and tax-equivalent)	Average Balances			Interest ⁽¹⁾		Annualized Average Yield/Rate		Average Balances			Interest ⁽¹⁾		Annualized Average Yield/Rate
Assets
Commercial investor real estate loans	$	4,929,894		$	234,402	4.75	%	$	5,133,279		$	237,976	4.64	%
Commercial owner-occupied real estate loans		1,740,376			84,587	4.86			1,766,839			82,049	4.64
Commercial AD&C loans		1,180,100			93,082	7.89			1,023,669			81,515	7.96
Commercial business loans		1,561,616			105,400	6.75			1,440,382			92,080	6.39
Total commercial loans		9,411,986			517,471	5.50			9,364,169			493,620	5.27
Residential mortgage loans		1,518,170			56,644	3.73			1,380,496			48,909	3.54
Residential construction loans		77,276			3,880	5.02			187,599			6,817	3.63
Consumer loans		422,260			34,189	8.10			421,963			32,946	7.81
Total residential and consumer loans		2,017,706			94,713	4.69			1,990,058			88,672	4.46
Total loans ⁽²⁾		11,429,692			612,184	5.36			11,354,227			582,292	5.13
Residential mortgage loans held for sale		14,089			1,050	7.45			12,421			896	7.21
SBA loans held for sale		165			23	14.17			—			—	—
Taxable securities		1,200,218			29,140	2.43			1,254,739			26,992	2.15
Tax-advantaged securities		336,913			8,928	2.65			357,933			9,049	2.53
Total investment securities ⁽³⁾		1,537,131			38,068	2.48			1,612,672			36,041	2.23
Interest-bearing deposits with banks		492,649			25,398	5.16			432,392			22,435	5.19
Federal funds sold		216			8	3.79			393			17	4.26
Total interest-earning assets		13,473,942			676,731	5.02			13,412,105			641,681	4.78

Less: allowance for credit losses – loans		(125,131	)						(124,624	)
Cash and due from banks		81,761							93,494
Premises and equipment, net		58,571							69,886
Other assets		640,652							604,784
Total assets	$	14,129,795						$	14,055,645

Liabilities and Stockholders’ Equity
Interest-bearing demand deposits	$	1,480,668		$	25,368	1.71	%	$	1,429,219		$	16,077	1.12	%
Regular savings deposits		1,643,305			56,365	3.43			784,575			17,546	2.24
Money market savings deposits		2,914,712			105,847	3.63			2,974,580			93,432	3.14
Time deposits		2,588,713			115,593	4.47			2,695,232			97,973	3.64
Total interest-bearing deposits		8,627,398			303,173	3.51			7,883,606			225,028	2.85
Repurchase agreements		65,913			1,370	2.08			63,259			915	1.45
Federal funds purchased and Federal Reserve Bank borrowings		75,227			3,889	5.17			273,508			13,537	4.95
Advances from FHLB		465,164			20,259	4.36			615,082			27,709	4.50
Subordinated debt		371,085			16,455	4.43			370,487			15,785	4.26
Total borrowings		977,389			41,973	4.29			1,322,336			57,946	4.38
Total interest-bearing liabilities		9,604,787			345,146	3.59			9,205,942			282,974	3.07

Noninterest-bearing demand deposits		2,779,696							3,152,699
Other liabilities		147,856							168,762
Stockholders’ equity		1,597,456							1,528,242
Total liabilities and stockholders’ equity	$	14,129,795						$	14,055,645

Tax-equivalent net interest income and spread				$	331,585	1.43	%				$	358,707	1.71	%
Less: tax-equivalent adjustment					4,459							4,157
Net interest income				$	327,126						$	354,550

Interest income/earning assets						5.02	%						4.78	%
Interest expense/earning assets						2.56							2.11
Net interest margin						2.46	%						2.67	%

(1)	Tax-equivalent income has been adjusted using the combined marginal federal and state rate of 25.48% and 25.37% for 2024 and 2023, respectively. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $4.5 million and $4.2 million in 2024 and 2023, respectively.
(2)	Non-accrual loans are included in the average balances.
(3)	Available-for-sale investments are presented at amortized cost.

The MIL Network –

January 29, 2025

MIL-OSI: Provident Financial Holdings Reports Second Quarter of Fiscal Year 2025 Results

Source: GlobeNewswire (MIL-OSI)

Net Income of $872,000 in the December 2024 Quarter, Down 54% from the Sequential Quarter and 59% from the Comparable Quarter Last Year

Net Interest Margin of 2.91% in the December 2024 Quarter, Up Seven Basis Points from the Sequential Quarter and 13 Basis Points from the Comparable Quarter Last Year

Loans Held for Investment of $1.05 Billion at December 31, 2024, Unchanged from June 30, 2024

Total Deposits of $867.5 Million at December 31, 2024, Down 2% from June 30, 2024

Non-Performing Assets to Total Assets Ratio of 0.20% at December 31, 2024, Unchanged from June 30, 2024

Non-Interest Expenses Remain Well Controlled

RIVERSIDE, Calif., Jan. 28, 2025 (GLOBE NEWSWIRE) — Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced earnings for the second quarter of the fiscal year ending June 30, 2025.

The Company reported net income of $872,000, or $0.13 per diluted share (on 6.79 million average diluted shares outstanding), for the quarter ended December 31, 2024, down 59 percent from net income of $2.14 million, or $0.31 per diluted share (on 6.98 million average diluted shares outstanding), in the comparable period a year ago. The decrease in earnings was due primarily to a $586,000 provision for credit losses, in contrast to a $720,000 recovery of credit losses in the comparable period a year ago, and a $450,000 increase in non-interest expenses (primarily attributable to higher salaries and employee benefits and other operating expenses).

“I am pleased with the progress we have made in our fundamental operating results. Net interest income increased by approximately two percent from the prior sequential quarter and was largely the result of an expanding net interest margin. Growth in the loans held for investment portfolio, which increased from the September 30, 2024 balance, also contributed to this improvement. Credit quality remains strong; however, the increase in mortgage interest rates has resulted in a longer estimated average life of our loan portfolio and a corresponding provision for credit losses. Additionally, we remain active in our stock repurchase plan with our Board of Directors recently approving a new plan, demonstrating our commitment to sound capital management practices,” stated Donavon P. Ternes, President and Chief Executive Officer of the Company. “As I described last quarter, our business model performs better in a flat or upward-sloping yield curve environment. Now that the Federal Open Market Committee has implemented looser monetary policy and the inverted yield curve has reversed course, we are transitioning back to less restrictive operating strategies,” concluded Ternes.

Return on average assets was 0.28 percent for the second quarter of fiscal 2025, compared to 0.61 percent in the first quarter of fiscal 2025 and 0.66 percent for the second quarter of fiscal 2024. Return on average stockholders’ equity for the second quarter of fiscal 2025 was 2.66 percent, compared to 5.78 percent for the first quarter of fiscal 2025 and 6.56 percent for the second quarter of fiscal 2024.

On a sequential quarter basis, the $872,000 net income for the second quarter of fiscal 2025 reflects a 54 percent decrease from $1.90 million in the first quarter of fiscal 2025. The decrease was primarily attributable to a $586,000 provision for credit losses, in contrast to a $697,000 recovery of credit losses, and a $271,000 increase in non-interest expense (primarily due to an increase in salaries and employee benefits), partly offset by a $143,000 increase in net interest income (primarily due to a higher net interest margin). The increase in salaries and employee benefits expense was primarily attributable to higher employee compensation. Diluted earnings per share for the second quarter of fiscal 2025 were $0.13 per share, down 54 percent from $0.28 per share in the first quarter of fiscal 2025.

For the six months ended December 31, 2024, net income decreased $1.13 million, or 29 percent, to $2.77 million from $3.90 million in the comparable period in fiscal 2024. Diluted earnings per share for the six months ended December 31, 2024 decreased 27 percent to $0.41 per share (on 6.83 million average diluted shares outstanding) from $0.56 per share (on 7.00 million average diluted shares outstanding) for the comparable six-month period last year. The decrease in earnings was primarily attributable to a $1.12 million increase in non-interest expense (primarily due to an increase in salaries and employee benefits and other operating expenses) and a $538,000 decrease in net interest income, partly offset by a $118,000 increase in non-interest income.

In the second quarter of fiscal 2025, net interest income decreased slightly to $8.76 million from $8.77 million for the same quarter last year. The slight decrease in net interest income was due to a lower average balance of interest-earning assets, partly offset by a higher net interest margin. The average balance of interest-earning assets decreased five percent to $1.20 billion in the second quarter of fiscal 2025 from $1.26 billion in the same quarter last year, primarily due to decreases in the average balance of loans receivable, investment securities and interest-earning deposits. The net interest margin for the second quarter of fiscal 2025 increased 13 basis points to 2.91 percent from 2.78 percent in the same quarter last year. The increase in net interest margin was due to increased yields on interest-earning assets outpacing increased funding costs. The average yield on interest-earning assets increased 33 basis points to 4.66 percent in the second quarter of fiscal 2025 from 4.33 percent in the same quarter last year. In contrast, our average funding costs increased by 23 basis points to 1.92 percent in the second quarter of fiscal 2025 from 1.69 percent in the same quarter last year.

Interest income on loans receivable increased $541,000, or four percent, to $13.05 million in the second quarter of fiscal 2025 from $12.51 million in the same quarter of fiscal 2024. The increase was due to a higher average loan yield, partly offset by a lower average loan balance. The average yield on loans receivable increased 33 basis points to 4.99 percent in the second quarter of fiscal 2025 from 4.66 percent in the same quarter last year. Adjustable-rate loans of approximately $100.7 million repriced upward in the second quarter of fiscal 2025 by approximately 15 basis points from a weighted average rate of 7.83 percent to 7.98 percent. The average balance of loans receivable decreased $27.8 million, or three percent, to $1.05 billion in the second quarter of fiscal 2025 from $1.07 billion in the same quarter last year. Total loans originated for investment in the second quarter of fiscal 2025 were $36.4 million, up 80 percent from $20.2 million in the same quarter last year, while loan principal payments received in the second quarter of fiscal 2025 were $34.3 million, up 93 percent from $17.8 million in the same quarter last year.

Interest income from investment securities decreased $53,000, or 10 percent, to $471,000 in the second quarter of fiscal 2025 from $524,000 for the same quarter of fiscal 2024. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $23.4 million, or 16 percent, to $123.8 million in the second quarter of fiscal 2025 from $147.2 million in the same quarter last year. The decrease in the average balance was due to scheduled principal payments and prepayments of investment securities. The average yield on investment securities increased 10 basis points to 1.52 percent in the second quarter of fiscal 2025 from 1.42 percent for the same quarter last year. The increase in the average yield was primarily attributable to a lower premium amortization during the current quarter in comparison to the same quarter last year ($97,000 vs. $137,000) due to lower total principal repayments ($5.3 million vs. $5.9 million) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

In the second quarter of fiscal 2025, the Bank received $213,000 in cash dividends from the Federal Home Loan Bank (“FHLB”) – San Francisco stock and other equity investments, up eight percent from $197,000 in the same quarter last year, resulting in an average yield of 8.38 percent in the second quarter of fiscal 2025 compared to 8.29 percent in the same quarter last year. The average balance of FHLB – San Francisco stock and other equity investments in the second quarter of fiscal 2025 was $10.2 million, up from $9.5 million in the same quarter of fiscal 2024.

Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank (“FRB”) of San Francisco, was $287,000 in the second quarter of fiscal 2025, down $148,000 or 34 percent from $435,000 in the same quarter of fiscal 2024. The decrease was due to a lower average balance and, to a lesser extent, a lower average yield. The average balance of the Company’s interest-earning deposits decreased $7.8 million, or 25 percent, to $23.7 million in the second quarter of fiscal 2025 from $31.5 million in the same quarter last year. The average yield earned on interest-earning deposits in the second quarter of fiscal 2025 was 4.74 percent, down 67 basis points from 5.41 percent in the same quarter last year. The decrease in the average yield was due to a lower average interest rate on the FRB’s reserve balances resulting from decreases in the targeted federal funds rate during the comparable periods.

Interest expense on deposits for the second quarter of fiscal 2025 was $2.67 million, an increase of $401,000 or 18 percent from $2.27 million for the same period last year. The increase was attributable to higher rates paid on deposits, partly offset by a lower average balance. The average cost of deposits was 1.23 percent in the second quarter of fiscal 2025, up 24 basis points from 0.99 percent in the same quarter last year. The increase in the average cost of deposits was primarily attributable to an increase in higher cost time deposits, particularly brokered certificates of deposit. The average balance of deposits decreased $51.5 million, or six percent, to $863.1 million in the second quarter of fiscal 2025 from $914.6 million in the same quarter last year.

Transaction account balances, or “core deposits,” decreased $21.6 million, or four percent, to $592.9 million at December 31, 2024 from $614.5 million at June 30, 2024, while time deposits increased slightly to $274.6 million at December 31, 2024 from $273.9 million at June 30, 2024. As of December 31, 2024, brokered certificates of deposit totaled $143.8 million, up $12.0 million or nine percent from $131.8 million at June 30, 2024. The weighted average cost of brokered certificates of deposit was 4.56 percent and 5.18 percent (including broker fees) at December 31, 2024 and June 30, 2024, respectively.

Interest expense on borrowings, consisting of FHLB advances, for the second quarter of fiscal 2025 decreased $30,000, or one percent, to $2.59 million from $2.62 million for the same period last year. The decrease in interest expense on borrowings was primarily the result of a lower average balance, partly offset by a higher average cost. The average balance of borrowings decreased $3.8 million, or two percent, to $226.7 million in the second quarter of fiscal 2025 from $230.5 million in the same quarter last year. The average cost of borrowings increased two basis points to 4.53 percent in the second quarter of fiscal 2025 from 4.51 percent in the same quarter last year.

At December 31, 2024, the Bank had approximately $246.2 million of remaining borrowing capacity at the FHLB. Additionally, the Bank has an unused secured borrowing facility of approximately $198.5 million with the FRB of San Francisco and an unused unsecured federal funds borrowing facility of $50.0 million with its correspondent bank. The total available borrowing capacity across all sources totaled approximately $494.7 million at December 31, 2024.

The Bank continues to work with both the FHLB and FRB of San Francisco to ensure that its borrowing capacity is continuously reviewed and updated in order to be accessed seamlessly should the need arise.

During the second quarter of fiscal 2025, the Company recorded a provision for credit losses of $586,000 (which included a $41,000 recovery of unfunded commitment reserves), in contrast to a $720,000 recovery of credit losses recorded during the same period last year and a $697,000 recovery of credit losses recorded in the first quarter of fiscal 2025 (sequential quarter). The provision for credit losses recorded in the second quarter of fiscal 2025 was primarily attributable to a longer estimated life of the loan portfolio resulting from lower loan prepayment estimates (attributable to higher interest rates) and a slight increase in the outstanding balance of loans held for investment at December 31, 2024 from September 30, 2024.

Non-performing assets, comprised solely of non-accrual loans with underlying collateral located in California, decreased $66,000 or three percent to $2.5 million, which represented 0.20 percent of total assets at December 31, 2024, compared to $2.6 million, which represented 0.20 percent of total assets at June 30, 2024. At both December 31, 2024 and June 30, 2024, non-performing loans were comprised of 10 single-family loans. At both December 31, 2024 and June 30, 2024, there was no real estate owned and no loans past due by 90 days or more that were accruing interest. For the quarters ended December 31, 2024 and 2023, there were no loan charge-offs.

The recent wildfires in Los Angeles, California did not have a material impact on the Company’s operations or the Bank’s customers. The Bank’s branches and facilities remained operational throughout the wildfire events, and there were no significant disruptions to customer services or business activities observed. Additionally, the Bank has not identified any significant credit exposure or financial impact attributable to the wildfires at this time.

Classified assets were $5.8 million at December 31, 2024, consisting of $631,000 of loans in the special mention category and $5.1 million of loans in the substandard category. Classified assets at June 30, 2024 were $5.8 million, consisting of $1.1 million of loans in the special mention category and $4.7 million of loans in the substandard category.

The allowance for credit losses on loans held for investment was $7.0 million, or 0.66 percent of gross loans held for investment, at December 31, 2024, down from $7.1 million, or 0.67 percent of gross loans held for investment, at June 30, 2024. The decrease in the allowance for credit losses was due primarily to a shorter estimated life of the loan portfolio, partly offset by a slightly higher balance of loans held for investment. Management believes that, based on currently available information, the allowance for credit losses is sufficient to absorb expected losses inherent in loans held for investment at December 31, 2024.

Non-interest income decreased by $30,000, or three percent, to $845,000 in the second quarter of fiscal 2025 from $875,000 in the same period last year, due primarily to decreases in loan servicing and other fess, deposit fees and card and processing fees, partly offset by an increase in other fees. On a sequential quarter basis, non-interest income decreased $54,000, or six percent, primarily due to decreases in loan servicing and other fess, deposit fees and card and processing fees, partly offset by an increase in other fees.

Non-interest expense increased $450,000, or six percent, to $7.79 million in the second quarter of fiscal 2025 from $7.34 million for the same quarter last year, primarily due to higher salaries and employee benefits expenses and other operating expenses. The higher salaries and employee benefits expenses was primarily due to higher compensation expenses, retirement plan benefit expenses and executive search agency costs, partly offset by a lower accrual adjustment for the supplemental executive retirement plans expense. On a sequential quarter basis, non-interest expense increased $271,000, or four percent as compared to $7.52 million in the first quarter of fiscal 2025, due primarily to higher salaries and employee benefits expenses. The higher salaries and employee benefits expenses was primarily due to higher compensation expenses, a higher accrual adjustment for the supplemental executive retirement plans expense and executive search agency costs.

The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the second quarter of fiscal 2025 was 81.15 percent, an increase from 76.11 percent in the same quarter last year and 79.06 percent in the first quarter of fiscal 2025 (sequential quarter). The increase in the efficiency ratio during the current quarter in comparison to the comparable quarter last year was due to higher non-interest expense and, to a lesser extent, a lower net interest income and non-interest income.

The Company’s provision for income taxes was $352,000 for the second quarter of fiscal 2025, down 60 percent from $884,000 in the same quarter last year and down 55 percent from $789,000 for the first quarter of fiscal 2025 (sequential quarter). The decrease during the current quarter compared to both the sequential quarter and same quarter last year was due to a decrease in pre-tax income. The effective tax rate in the second quarter of fiscal 2025 was 28.8 percent as compared to 29.2 percent in the same quarter last year and 29.3 percent for the first quarter of fiscal 2025 (sequential quarter).

The Company repurchased 63,556 shares of its common stock pursuant to its current stock repurchase program at an average cost of $16.04 per share during the quarter ended December 31, 2024. As of December 31, 2024, a total of 31,919 shares remained available for future purchase under the Company’s current repurchase program, which expires on September 26, 2025.

The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire).

The Company will host a conference call for institutional investors and bank analysts on Tuesday, January 28, 2025 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-800-715-9871 and referencing Conference ID number 7361828. An audio replay of the conference call will be available through Tuesday, February 4, 2025 by dialing 1-800-770-2030 and referencing Conference ID number 7361828.

For more financial information about the Company please visit the website at www.myprovident.com and click on the “Investor Relations” section.

Safe-Harbor Statement

This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to: adverse economic conditions in our local market areas or other markets where we have lending relationships; effects of employment levels, labor shortages, inflation, a recession or slowed economic growth; changes in the interest rate environment, including the increases and decreases in the Board of Governors of the Federal Reserve Board (the “Federal Reserve”) benchmark rate and the duration of such levels, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the Federal Reserve monetary policy; the effects of any Federal government shutdown; credit risks of lending activities, including loan delinquencies, write-offs, changes in our ACL, and provision for credit losses; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; quality and composition of our securities portfolio and the impact of adverse changes in the securities markets; fluctuations in deposits; secondary market conditions for loans and our ability to sell loans in the secondary market; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; expectations regarding key growth initiatives and strategic priorities; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; results of examinations of us by regulatory authorities, which may the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; use of estimates in determining the fair value of assets, which may prove incorrect; disruptions or security breaches, or other adverse events, failures or interruptions in or attacks on our information technology systems or on our third-party vendors; the potential imposition of new tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; staffing fluctuations in response to product demand or corporate implementation strategies; our ability to pay dividends on our common stock; environmental, social and governance goals; effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with and furnished to the Securities and Exchange Commission (“SEC”), which are available on our website at www.myprovident.com and on the SEC’s website at www.sec.gov.

We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements whether as a result of new information, future events or otherwise. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us and could negatively affect our operating and stock price performance.


Contacts:	Donavon P. Ternes	TamHao B. Nguyen
	President and	Senior Vice President and
	Chief Executive Officer	Chief Financial Officer


PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Financial Condition (Unaudited –In Thousands, Except Share and Per Share Information)

	December 31,			September 30,			June 30,			March 31,			December 31,
		2024		2024			2024			2024			2023
Assets
Cash and cash equivalents	$	45,539		$	48,193		$	51,376		$	51,731		$	46,878
Investment securities – held to maturity, at cost with no allowance for credit losses		118,888			124,268			130,051			135,971			141,692
Investment securities – available for sale, at fair value		1,750			1,809			1,849			1,935			1,996
Loans held for investment, net of allowance for credit losses of $6,956, $6,329, $7,065, $7,108 and $7,000, respectively; includes $1,016, $1,082, $1,047, $1,054 and $1,092 of loans held at fair value, respectively		1,053,603			1,048,633			1,052,979			1,065,761			1,075,765
Accrued interest receivable		4,167			4,287			4,287			4,249			4,076
FHLB – San Francisco stock and other equity investments, includes $650, $565, $540, $0 and $0 of other equity investments at fair value, respectively		10,218			10,133			10,108			9,505			9,505
Premises and equipment, net		9,474			9,615			9,313			9,637			9,598
Prepaid expenses and other assets		11,327			10,442			12,237			11,258			11,583
Total assets	$	1,254,966		$	1,257,380		$	1,272,200		$	1,290,047		$	1,301,093

Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing deposits	$	85,399		$	86,458		$	95,627		$	91,708		$	94,030
Interest-bearing deposits		782,116			777,406			792,721			816,414			817,950
Total deposits		867,515			863,864			888,348			908,122			911,980

Borrowings		245,500			249,500			238,500			235,000			242,500
Accounts payable, accrued interest and other liabilities		13,321			14,410			15,411			17,419			16,952
Total liabilities		1,126,336			1,127,774			1,142,259			1,160,541			1,171,432

Stockholders’ equity:
Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding)		—			—			—			—			—
Common stock, $.01 par value; (40,000,000 shares authorized; 18,229,615, 18,229,615, 18,229,615, 18,229,615 and 18,229,615 shares issued respectively; 6,705,691, 6,769,247, 6,847,821, 6,896,297 and 6,946,348 shares outstanding, respectively)		183			183			183			183			183
Additional paid-in capital		98,747			98,711			98,532			99,591			99,565
Retained earnings		210,779			210,853			209,914			208,923			208,396
Treasury stock at cost (11,523,924, 11,460,368, 11,381,794, 11,333,318, and 11,283,267 shares, respectively)		(181,094	)		(180,155	)		(178,685	)		(179,183	)		(178,476	)
Accumulated other comprehensive income (loss), net of tax		15			14			(3	)		(8	)		(7	)
Total stockholders’ equity		128,630			129,606			129,941			129,506			129,661
Total liabilities and stockholders’ equity	$	1,254,966		$	1,257,380		$	1,272,200		$	1,290,047		$	1,301,093


PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited – In Thousands, Except Per Share Information)

	For the Quarter Ended					Six Months Ended
	December 31,					December 31,
	2024		2023			2024			2023
Interest income:
Loans receivable, net	$	13,050	$	12,509		$	26,073		$	24,685
Investment securities		471		524			953			1,048
FHLB – San Francisco stock and other equity investments		213		197			423			376
Interest-earning deposits		287		435			647			898
Total interest income		14,021		13,665			28,096			27,007

Interest expense:
Checking and money market deposits		51		72			104			129
Savings deposits		117		73			229			111
Time deposits		2,506		2,128			5,165			3,918
Borrowings		2,588		2,618			5,223			4,936
Total interest expense		5,262		4,891			10,721			9,094

Net interest income		8,759		8,774			17,375			17,913
Provision for (recovery of) credit losses		586		(720	)		(111	)		(175	)
Net interest income, after provision for (recovery of) credit losses		8,173		9,494			17,486			18,088

Non-interest income:
Loan servicing and other fees		60		124			164			103
Deposit account fees		282		299			580			587
Card and processing fees		300		333			620			686
Other		203		119			380			250
Total non-interest income		845		875			1,744			1,626

Non-interest expense:
Salaries and employee benefits		4,826		4,569			9,459			8,683
Premises and occupancy		917		903			1,868			1,806
Equipment		379		346			722			633
Professional		412		410			838			882
Sales and marketing		187		181			360			349
Deposit insurance premiums and regulatory assessments		190		209			373			406
Other		883		726			1,697			1,441
Total non-interest expense		7,794		7,344			15,317			14,200
Income before income taxes		1,224		3,025			3,913			5,514
Provision for income taxes		352		884			1,141			1,611
Net income	$	872	$	2,141		$	2,772		$	3,903

Basic earnings per share	$	0.13	$	0.31		$	0.41		$	0.56
Diluted earnings per share	$	0.13	$	0.31		$	0.41		$	0.56
Cash dividends per share	$	0.14	$	0.14		$	0.28		$	0.28


PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations – Sequential Quarters (Unaudited – In Thousands, Except Per Share Information)

	For the Quarter Ended
	December 31,		September 30,			June 30,			March 31,		December 31,
	2024		2024			2024			2024		2023
Interest income:
Loans receivable, net	$	13,050	$	13,023		$	12,826		$	12,683	$	12,509
Investment securities		471		482			504			517		524
FHLB – San Francisco stock and other equity investments		213		210			207			210		197
Interest-earning deposits		287		360			379			397		435
Total interest income		14,021		14,075			13,916			13,807		13,665

Interest expense:
Checking and money market deposits		51		53			71			90		72
Savings deposits		117		112			105			97		73
Time deposits		2,506		2,659			2,657			2,488		2,128
Borrowings		2,588		2,635			2,632			2,573		2,618
Total interest expense		5,262		5,459			5,465			5,248		4,891

Net interest income		8,759		8,616			8,451			8,559		8,774
Provision for (recovery of) credit losses		586		(697	)		(12	)		124		(720	)
Net interest income, after provision for (recovery of) credit losses		8,173		9,313			8,463			8,435		9,494

Non-interest income:
Loan servicing and other fees		60		104			142			92		124
Deposit account fees		282		298			278			289		299
Card and processing fees		300		320			381			317		333
Other		203		177			666			150		119
Total non-interest income		845		899			1,467			848		875

Non-interest expense:
Salaries and employee benefits		4,826		4,633			4,419			4,540		4,569
Premises and occupancy		917		951			945			835		903
Equipment		379		343			347			329		346
Professional		412		426			327			321		410
Sales and marketing		187		173			193			167		181
Deposit insurance premiums and regulatory assessments		190		183			184			190		209
Other		883		814			757			786		726
Total non-interest expense		7,794		7,523			7,172			7,168		7,344
Income before income taxes		1,224		2,689			2,758			2,115		3,025
Provision for income taxes		352		789			805			620		884
Net income	$	872	$	1,900		$	1,953		$	1,495	$	2,141

Basic earnings per share	$	0.13	$	0.28		$	0.28		$	0.22	$	0.31
Diluted earnings per share	$	0.13	$	0.28		$	0.28		$	0.22	$	0.31
Cash dividends per share	$	0.14	$	0.14		$	0.14		$	0.14	$	0.14


PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands, Except Share and Per Share Information)

	As of and For the
	Quarter Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
SELECTED FINANCIAL RATIOS:
Return on average assets		0.28	%		0.66	%		0.45	%		0.60	%
Return on average stockholders’ equity		2.66	%		6.56	%		4.22	%		5.98	%
Stockholders’ equity to total assets		10.25	%		9.97	%		10.25	%		9.97	%
Net interest spread		2.74	%		2.64	%		2.70	%		2.70	%
Net interest margin		2.91	%		2.78	%		2.87	%		2.83	%
Efficiency ratio		81.15	%		76.11	%		80.11	%		72.68	%
Average interest-earning assets to average interest-bearing liabilities		110.52	%		110.27	%		110.43	%		110.22	%

SELECTED FINANCIAL DATA:
Basic earnings per share	$	0.13		$	0.31		$	0.41		$	0.56
Diluted earnings per share	$	0.13		$	0.31		$	0.41		$	0.56
Book value per share	$	19.18		$	18.67		$	19.18		$	18.67
Shares used for basic EPS computation		6,744,653			6,968,460			6,788,889			6,992,565
Shares used for diluted EPS computation		6,792,759			6,980,856			6,827,921			7,004,042
Total shares issued and outstanding		6,705,691			6,946,348			6,705,691			6,946,348

LOANS ORIGINATED FOR INVESTMENT:
Mortgage loans:
Single-family	$	29,583		$	8,660		$	52,032		$	21,112
Multi-family		6,495			6,608			11,685			11,721
Commercial real estate		365			4,936			1,625			5,875
Commercial business loans		—			—			50			—
Total loans originated for investment	$	36,443		$	20,204		$	65,392		$	38,708


PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands, Except Share and Per Share Information)

	As of and For the
	Quarter			Quarter			Quarter			Quarter			Quarter
	Ended			Ended			Ended			Ended			Ended
	12/31/24			09/30/24			06/30/24			03/31/24			12/31/23
SELECTED FINANCIAL RATIOS:
Return on average assets		0.28	%		0.61	%		0.62	%		0.47	%		0.66	%
Return on average stockholders’ equity		2.66	%		5.78	%		5.96	%		4.57	%		6.56	%
Stockholders’ equity to total assets		10.25	%		10.31	%		10.21	%		10.04	%		9.97	%
Net interest spread		2.74	%		2.66	%		2.54	%		2.55	%		2.64	%
Net interest margin		2.91	%		2.84	%		2.74	%		2.74	%		2.78	%
Efficiency ratio		81.15	%		79.06	%		72.31	%		76.20	%		76.11	%
Average interest-earning assets to average interest-bearing liabilities		110.52	%		110.34	%		110.40	%		110.28	%		110.27	%

SELECTED FINANCIAL DATA:
Basic earnings per share	$	0.13		$	0.28		$	0.28		$	0.22		$	0.31
Diluted earnings per share	$	0.13		$	0.28		$	0.28		$	0.22		$	0.31
Book value per share	$	19.18		$	19.15		$	18.98		$	18.78		$	18.67
Average shares used for basic EPS		6,744,653			6,833,125			6,867,521			6,919,397			6,968,460
Average shares used for diluted EPS		6,792,759			6,863,083			6,893,813			6,935,053			6,980,856
Total shares issued and outstanding		6,705,691			6,769,247			6,847,821			6,896,297			6,946,348

LOANS ORIGINATED FOR INVESTMENT:
Mortgage loans:
Single-family	$	29,583		$	22,449		$	10,862		$	8,946		$	8,660
Multi-family		6,495			5,190			4,526			5,865			6,608
Commercial real estate		365			1,260			1,710			2,172			4,936
Construction		—			—			1,480			—			—
Commercial business loans		—			50			—			1,250			—
Total loans originated for investment	$	36,443		$	28,949		$	18,578		$	18,233		$	20,204


PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands)

	As of			As of			As of			As of			As of
	12/31/24			09/30/24			06/30/24			03/31/24			12/31/23
ASSET QUALITY RATIOS AND DELINQUENT LOANS:
Recourse reserve for loans sold	$	23		$	23		$	26		$	31		$	31
Allowance for credit losses on loans held for investment	$	6,956		$	6,329		$	7,065		$	7,108		$	7,000
Non-performing loans to loans held for investment, net		0.24	%		0.20	%		0.25	%		0.21	%		0.16	%
Non-performing assets to total assets		0.20	%		0.17	%		0.20	%		0.17	%		0.13	%
Allowance for credit losses on loans to gross loans held for investment		0.66	%		0.61	%		0.67	%		0.67	%		0.65	%
Net loan charge-offs (recoveries) to average loans receivable (annualized)		—	%		—	%		—	%		—	%		—	%
Non-performing loans	$	2,530		$	2,106		$	2,596		$	2,246		$	1,750
Loans 30 to 89 days delinquent	$	3		$	2		$	1		$	388		$	340


	Quarter		Quarter			Quarter			Quarter		Quarter
	Ended		Ended			Ended			Ended		Ended
	12/31/24		09/30/24			06/30/24			03/31/24		12/31/23
(Recovery) recourse provision for loans sold	$	—	$	(3	)	$	(5	)	$	—	$	(2	)
Provision for (recovery of) credit losses	$	586	$	(697	)	$	(12	)	$	124	$	(720	)
Net loan charge-offs (recoveries)	$	—	$	—		$	—		$	—	$	—


	As of		As of		As of		As of		As of
	12/31/2024		09/30/2024		06/30/2024		03/31/2024		12/31/2023
REGULATORY CAPITAL RATIOS (BANK):
Tier 1 leverage ratio	9.81	%	9.63	%	10.02	%	9.70	%	9.48	%
Common equity tier 1 capital ratio	18.60	%	18.36	%	19.29	%	18.77	%	18.20	%
Tier 1 risk-based capital ratio	18.60	%	18.36	%	19.29	%	18.77	%	18.20	%
Total risk-based capital ratio	19.67	%	19.35	%	20.38	%	19.85	%	19.24	%


	As of December 31,
	2024				2023
	Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾
INVESTMENT SECURITIES:
Held to maturity (at cost):
U.S. SBA securities	$	385	5.35	%	$	630	5.85	%
U.S. government sponsored enterprise MBS		114,817	1.59			137,205	1.50
U.S. government sponsored enterprise CMO		3,686	2.14			3,857	2.17
Total investment securities held to maturity	$	118,888	1.62	%	$	141,692	1.54	%

Available for sale (at fair value):
U.S. government agency MBS	$	1,152	4.46	%	$	1,314	3.47	%
U.S. government sponsored enterprise MBS		518	6.90			584	5.61
Private issue CMO		80	6.09			98	4.67
Total investment securities available for sale	$	1,750	5.26	%	$	1,996	4.16	%
Total investment securities	$	120,638	1.67	%	$	143,688	1.57	%

⁽¹⁾Weighted-average yield earned on all instruments included in the balance of the respective line item.


PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands)

	As of December 31,
	2024					2023
	Balance			Rate⁽¹⁾		Balance			Rate⁽¹⁾
LOANS HELD FOR INVESTMENT:
Mortgage loans:
Single-family (1 to 4 units)	$	533,140		4.60	%	$	521,944		4.32	%
Multi-family (5 or more units)		433,724		5.48			458,502		5.00
Commercial real estate		77,984		6.72			88,640		6.20
Construction		1,480		11.00			2,534		8.88
Other		90		5.25			102		5.25
Commercial business loans		4,371		9.67			1,616		10.50
Consumer loans		59		17.75			68		18.50
Total loans held for investment		1,050,848		5.15	%		1,073,406		4.79	%

Advance payments of escrows		321					106
Deferred loan costs, net		9,390					9,253
Allowance for credit losses on loans		(6,956	)				(7,000	)
Total loans held for investment, net	$	1,053,603				$	1,075,765
Purchased loans serviced by others included above	$	1,749		5.72	%	$	10,239		5.59	%

⁽¹⁾Weighted-average yield earned on all instruments included in the balance of the respective line item.


	As of December 31,
	2024				2023
	Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾
DEPOSITS:
Checking accounts – noninterest-bearing	$	85,399	—	%	$	94,030	—	%
Checking accounts – interest-bearing		251,024	0.04			275,396	0.04
Savings accounts		232,917	0.20			256,578	0.14
Money market accounts		23,527	0.29			31,637	0.82
Time deposits		274,648	3.61			254,339	3.76
Total deposits⁽²⁾⁽³⁾	$	867,515	1.22	%	$	911,980	1.13	%

Brokered CDs included in time deposits above	$	143,775	4.56	%	$	122,700	5.26	%

BORROWINGS:
Overnight	$	15,000	4.66	%	$	—	—	%
Three months or less		40,000	3.98			67,500	4.35
Over three to six months		22,500	4.17			32,500	5.00
Over six months to one year		59,000	5.05			40,000	5.21
Over one year to two years		94,000	4.46			67,500	4.14
Over two years to three years		—	—			20,000	4.72
Over three years to four years		15,000	4.41			—	—
Over four years to five years		—	—			15,000	4.41
Over five years		—	—			—	—
Total borrowings⁽⁴⁾	$	245,500	4.51	%	$	242,500	4.55	%

     ⁽¹⁾Weighted-average rate paid on all instruments included in the balance of the respective line item.
     ⁽²⁾Includes uninsured deposits of approximately $134.7 million and $140.3 million at December 31, 2024 and 2023, respectively.
     ⁽³⁾The average balance of deposit accounts was approximately $35 thousand and $34 thousand at December 31, 2024 and 2023, respectively.
     ⁽⁴⁾The Bank had approximately $246.2 million and $266.5 million of remaining borrowing capacity at the FHLB – San Francisco, approximately $198.5 million and $183.0 million of borrowing capacity at the FRB of San Francisco and $50.0 million and $50.0 million of borrowing capacity with its correspondent bank at December 31, 2024 and 2023, respectively.


PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands)

	For the Quarter Ended					For the Quarter Ended
	December 31, 2024					December 31, 2023
	Balance		Rate⁽¹⁾			Balance		Rate⁽¹⁾
SELECTED AVERAGE BALANCE SHEETS:

Loans receivable, net	$	1,046,797		4.99	%	$	1,074,592	4.66	%
Investment securities		123,826		1.52			147,166	1.42
FHLB – San Francisco stock and other equity investments		10,172		8.38			9,505	8.29
Interest-earning deposits		23,700		4.74			31,473	5.41
Total interest-earning assets	$	1,204,495		4.66	%	$	1,262,736	4.33	%
Total assets	$	1,234,768				$	1,293,471

Deposits⁽²⁾	$	863,106		1.23	%	$	914,629	0.99	%
Borrowings		226,707		4.53			230,546	4.51
Total interest-bearing liabilities⁽²⁾	$	1,089,813		1.92	%	$	1,145,175	1.69	%
Total stockholders’ equity	$	131,135				$	130,614

⁽¹⁾Weighted-average yield earned or rate paid on all instruments included in the balance of the respective line item.
⁽²⁾Includes the average balance of noninterest-bearing checking accounts of $86.2 million and $99.4 million during the quarters ended December 31, 2024 and 2023, respectively; and the average balance of uninsured deposits (adjusted lower by collateralized deposits) of $130.2 million and $139.3 million in the quarters ended December 31, 2024 and 2023, respectively.


	Six Months Ended					Six Months Ended
	December 31, 2024					December 31, 2023
	Balance		Rate⁽¹⁾			Balance		Rate⁽¹⁾
SELECTED AVERAGE BALANCE SHEETS:

Loans receivable, net	$	1,047,964		4.98	%	$	1,073,600	4.60	%
Investment securities		126,698		1.50			150,439	1.39
FHLB – San Francisco stock and other equity investments		10,146		8.34			9,505	7.91
Interest-earning deposits		25,015		5.06			32,758	5.36
Total interest-earning assets	$	1,209,823		4.64	%	$	1,266,302	4.27	%
Total assets	$	1,239,950				$	1,296,811

Deposits⁽²⁾	$	871,844		1.25	%	$	927,406	0.89	%
Borrowings		223,723		4.63			221,501	4.42
Total interest-bearing liabilities⁽²⁾	$	1,095,567		1.94	%	$	1,148,907	1.57	%
Total stockholders’ equity	$	131,317				$	130,578

⁽¹⁾Weighted-average yield earned or rate paid on all instruments included in the balance of the respective line item.
⁽²⁾Includes the average balance of noninterest-bearing checking accounts of $88.4 million and $102.8 million during the six months ended December 31, 2024 and 2023, respectively; and the average balance of uninsured deposits (adjusted lower by collateralized deposits) of $125.7 million and $139.1 million in the six months ended December 31, 2024 and 2023, respectively.

ASSET QUALITY:


	As of		As of		As of		As of		As of
	12/31/24		09/30/24		06/30/24		03/31/24		12/31/23
Loans on non-accrual status
Mortgage loans:
Single-family	$	2,530	$	2,106	$	2,596	$	2,246	$	1,750
Total		2,530		2,106		2,596		2,246		1,750

Accruing loans past due 90 days or more:		—		—		—		—		—
Total		—		—		—		—		—

Total non-performing loans ⁽¹⁾		2,530		2,106		2,596		2,246		1,750

Real estate owned, net		—		—		—		—		—
Total non-performing assets	$	2,530	$	2,106	$	2,596	$	2,246	$	1,750

⁽¹⁾The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.

The MIL Network –

January 29, 2025

MIL-OSI Economics: January 2025 euro area bank lending survey

Source: European Central Bank

28 January 2025

Credit standards tightened for firms in the fourth quarter of 2024, driven by higher perceived risks and lower risk tolerance
Credit standards remained unchanged for loans to households for house purchase but continued to tighten for consumer credit
Housing loan demand continued to rebound strongly, while demand for firm loans remained weak

According to the January 2025 bank lending survey (BLS), euro area banks reported a renewed net tightening of credit standards – banks’ internal guidelines or loan approval criteria – for loans or credit lines to enterprises in the fourth quarter of 2024 (net percentage of banks of 7%; Chart 1). Banks also reported broadly unchanged credit standards for loans to households for house purchase (net percentage of 1%), whereas credit standards for consumer credit and other lending to households tightened further (net percentage of 6%). For firms, the net tightening followed the unchanged credit standards seen in the third quarter and was higher than banks had expected in the previous survey round. It was driven by higher perceived risks related to the economic outlook, the industry-and-firm-specific situation and banks’ lower risk tolerance. For loans to households for house purchase, the stability of credit standards, after three quarters of easing, was in contrast to the strong net easing that banks had expected in the previous quarter. Credit standards tightened further for consumer credit, mainly owing to higher perceived risks. For the first quarter of 2025, banks expect a further net tightening of credit standards for loans to firms and consumer credit, and a small net tightening for loans to households for house purchase.

Banks’ overall terms and conditions – the actual terms and conditions agreed in loan contracts – remained broadly unchanged for loans to firms and consumer credit, but eased strongly for housing loans. For loans to firms, the contribution to easing from lower lending rates and narrower margins on average loans was broadly offset by stricter collateral requirements and other terms and conditions, such as loan covenants, to compensate for the higher perceived risks. For housing loans, lower lending rates and margins on average loans were the main drivers of the net easing. For consumer credit, lending rates had an easing impact, offset by widening loan margins.

In the fourth quarter of 2024, demand from firms for loans or the drawing of credit lines increased slightly (Chart 2), while remaining weak overall. Loan demand from firms was supported mainly by declining interest rates, with fixed investment having a still-muted impact after its small positive contribution in the previous quarter. Net demand for housing loans continued to increase strongly, driven mainly by declining interest rates, substantiating still further the signs of a rebound from the strong declines seen in housing loan demand over previous years. Demand for consumer credit and other lending to households increased slightly, supported by declining interest rates, whereas spending on durable goods and consumer confidence, among other factors, dampened demand for consumer credit. In the first quarter of 2025, banks expect loan demand to remain broadly unchanged for firms and to increase further for households, especially for housing loans.

Euro area banks’ access to funding worsened somewhat for retail funding, money markets and debt securities in the fourth quarter of 2024. In the first quarter of 2025, banks expect access to funding to remain broadly unchanged across all market segments.

In response to the new regulatory or supervisory requirements in 2024, euro area banks reported a net increase in their required capital as well as increases in their liquid and risk-weighted assets. Banks also reported a net tightening impact on credit standards stemming from the requirements, especially for loans to firms, with further net tightening expected in 2025.

Euro area banks reported that non-performing loan ratios and other indicators of credit quality had a net tightening impact on their credit standards for loans to firms and consumer credit in the second half of 2024, the largest since the height of the pandemic and the period of balance sheet clean-up in 2014-17. By contrast, for housing loans credit quality had a neutral impact on bank lending conditions. Banks expect these developments to continue in the first half of 2025.

Banks’ credit standards tightened further in all main economic sectors in the second half of 2024, especially in commercial real estate (CRE), wholesale and retail trade, construction and energy-intensive manufacturing. Banks also reported a net decrease in loan demand in CRE, construction and energy-intensive manufacturing. For the first half of 2025, banks expect a further net tightening of credit standards in most economic sectors, except for services. They expect muted loan demand in all sectors but residential real estate, for which they expect a moderate increase.

Banks reported that the changes in excess liquidity held with the Eurosystem had a neutral impact on bank lending conditions in the second half of 2024. They expect similar effects in the first half of 2025.

The quarterly BLS was developed by the Eurosystem to improve its understanding of bank lending behaviour in the euro area. The results reported in the January 2025 survey relate to changes observed in the fourth quarter of 2024 and changes expected in the first quarter of 2025, unless otherwise indicated. The January 2025 survey round was conducted between 10 December 2024 and 7 January 2025. A total of 155 banks were surveyed in this round, with a response rate of 99%.

Chart 1

Changes in credit standards for loans or credit lines to enterprises, and contributing factors

(net percentages of banks reporting a tightening of credit standards, and contributing factors)

Source: ECB (BLS).

Notes: Net percentages are defined as the difference between the sum of the percentages of banks responding “tightened considerably” and “tightened somewhat” and the sum of the percentages of banks responding “eased somewhat” and “eased considerably”. The net percentages for “Other factors” refer to an average of the further factors which were mentioned by banks as having contributed to changes in credit standards.

Chart 2

Changes in demand for loans or credit lines to enterprises, and contributing factors

(net percentages of banks reporting an increase in demand, and contributing factors)

Source: ECB (BLS).

Notes: Net percentages for the questions on demand for loans are defined as the difference between the sum of the percentages of banks responding “increased considerably” and “increased somewhat” and the sum of the percentages of banks responding “decreased somewhat” and “decreased considerably”. The net percentages for “Other factors” refer to an average of the further factors which were mentioned by banks as having contributed to changes in loan demand.

For media queries, please contact William Lelieveldt, tel.: +49 69 1344 7316.

Notes

A report on this survey round is available on the ECB’s website, along with a copy of the questionnaire, a glossary of BLS terms and a BLS user guide with information on the BLS series keys.
The euro area and national data series are available on the ECB’s website via the ECB Data Portal. National results, as published by the respective national central banks, can be obtained via the ECB’s website.
For more detailed information on the BLS, see Köhler-Ulbrich, P., Dimou, M., Ferrante, L. and Parle, C., “Happy anniversary, BLS – 20 years of the euro area bank lending survey”, Economic Bulletin, Issue 7, ECB, 2023; and Huennekes, F. and Köhler-Ulbrich, P., “What information does the euro area bank lending survey provide on future loan developments?”, Economic Bulletin, Issue 8, ECB, 2022.

MIL OSI Economics –

January 28, 2025

MIL-OSI Asia-Pac: To reimagine, reinvent, and reposition ISI as a globally recognized institution: Indian Statistical Institute poised to embrace the transformative vision as it approaches its centenary in 2031

Source: Government of India (2)

Posted On: 28 JAN 2025 1:19PM by PIB Delhi

The Indian Statistical Institute, established in 1931 by the visionary statistician Prof. Prasanta Chandra Mahalanobis, has played a pivotal role in statistical research, education, training and its application. Having been declared as an institution of national importance through the Indian Statistical Institute Act of 1959, the Institute has been a leader in advancing statistical methods and their application across various disciplines. The ISI Council is the governing body of the Institute. In terms of the provision of the ISI Act and ISI Regulations, a newly constituted Council has been set up for the term 2024-26. During the 1^stMeeting of the Council held on 26 October 2024, the members of the Council elected Dr. Koppillil Radhakrishnan, as the Chairman of the ISI, Council. Dr. Radhakrishnan is a Padma Bhushan awardee and an Indian Space Scientist, who headed the Indian Space Research Organisation (ISRO) as Chairman of the Space Commission and Secretary of the Department of Space, Government of India.

As per the provisions of the ISI Act, 1959, the Central Government (MoSPI) constitutes Committees at regularintervals for reviewing the performance of the ISI and for making recommendations about its future course. Under this provision, the 4^thReview Committee of the Indian Statistical Institutewas constituted in 2020. The Committee submitted its comprehensive report to the Government of India, charting a transformative roadmap for this esteemed Institution of National Importance. Headed by the distinguished scientist and former Director-General of the Council of Scientific and Industrial Research (CSIR), Dr. R.A. Mashelkar, the Committee, through interactions with multiple stakeholders, conducted an extensive review of ISI’s functioning, achievements and challenges, and arrived at the report culminating in a series of actionable recommendations aimed at rejuvenating the Institute’s role in advancing statistical sciences and its applications in India and globally.

Based on the theme ‘Reimagine, Reinvent and Reposition’, the Committee proposed 61 recommendations addressing governance, academic programs, research priorities, infrastructure, and financial sustainability of the Institute. The Committeehad extensive Stakeholder Consultations in the online mode due to the raging pandemic, engagingvirtually with faculty, students, alumni, and administrative staff to gather insights into ISI’s functioning, challenges, and aspirations.They also consulted industry experts, government representatives, and other academic institutions to understand and assess the external expectations from ISI. The Committee held virtual meetings to deliberate on findings and draft recommendations and undertook an evidence-basedevaluation of ISI’s performance over the past decade, including its research output, academic programs, infrastructure, and outreach efforts andbenchmarked ISI against leading global institutions to identify gaps and opportunities.

The Committee proposed a comprehensive set of recommendations to reimagine, reinvent, and reposition ISI as a globally recognized institution. It emphasized the need for governance reforms and strengthening accountability through performance-based evaluations and establishing clear work norms for faculty and staff. The committee recommended expanding academic programs to include cutting-edge fields like data science and machine learning, increasing student intake and faculty numbers to scale the institute’s impact, and promoting interdisciplinary and large-scale research projects with national and international relevance. It called for modernizing administrative processes and research methodologies using advanced digital tools and building world-class computing and laboratory infrastructure to support innovative research.

The recommendations also included establishing robust partnerships with industry and government to address real-world challenges and generate revenue, establishing more enabling structures like the technology innovation hub, enhancing visibility through targeted outreach and brand-building initiatives, and encouraging resource generation through research grants, industry collaborations, and alumni contributions. The committee stressed the importance of increasing autonomy in managing internal revenue and recruitment processes. Infrastructure development was also a priority, with a focus on upgrading physical facilities, including campuses, laboratories, and student housing, and establishing new centers focused on emerging disciplines and regional outreach.

The Committee’s recommendations are aimed at reimagining, reinventing, and repositioning ISI as a globally recognized institution and included recommendations in the area of Governance Reforms, Academic and Research Enhancements, Digital Transformation, Industry and Government Engagement, Financial Sustainability and Infrastructure Development.

ISI has commenced implementation of these recommendations, demonstrating their commitment towards strengthening the Institute’s excellence in addressing the nation’s socio-economic development needs. During the2^ndMeeting of the Council held on 23 January 2025, the Council of the Institute under the Chairmanship of Dr. Koppillil Radhakrishnan reviewed the status of implementation of the recommendations of the 4^thReview Committee.The Institute’sCouncil is committed to implement the Committee’s recommendations in a phased manner with focus on:

Short-Term Initiatives: Immediate steps to address critical issues, such as faculty recruitment, infrastructure upgradation, and governance reforms.
Medium-Term Goals: Enhancing academic and research programs, scaling outreach efforts, and improving financial sustainability.
Long-Term Vision: Transforming ISI into a global leader by its centenary year in 2031, with a focus on impactful research, innovative education, and strong industry connections.

ISI has commenced work on improving its structure, strengthening research and ensuring robust academic and administrative frameworks. Significant restructuring has been undertaken to align the Institute’s various Divisions with contemporary requirements. The Centre for AI and ML (CAIML) has aligned its initiatives with the National AI Policy, emphasizing strategic relevance. Efforts are also underway to operationalize the Interdisciplinary Centre for Applied Statistics and Biostatistics. The Research Centre for Economics and Data Analysis has been invigorated with dedicated leadership assignments, ensuring forward momentum. Faculty recruitment and promotions have been prioritized, with streamlined processes nearing finalization. Formalization of teaching benchmarks highlight ISI’s to academic excellence.

While certain actions remain under discussion, the groundwork has been laid for transformative changes. ISI has also adopted advanced digital teaching methods, introducing online and hybrid courses as part of a broader academic enhancement strategy. These initiatives are complemented by expedited decision-making processes within the Academic Council, fostering agility in program development and revision. Infrastructure and governance improvements remain a focal point, with e-governance initiatives progressing in alignment with MoSPI. Revenue generation efforts, including consultancy rules and facility usage charges, have been implemented to strengthen financial sustainability.

While many recommendations have been fully implemented, others are actively in progress. These actions, signal a forward-looking approach and underline the Government’s dedication to strengthen ISI as a global leader in statistical science and related disciplines.The Government recognizes ISI’s rich legacy of excellence and its critical role in supporting India’s economic and social development and is committed to providing the necessary support to realize the 4^th Review Committee’s vision and roadmap.

The Government of India’s support for implementing these recommendations reflects its commitment to empower the ISI as a cornerstone of the nation’s knowledge ecosystem. As the Institute approaches its centenary in 2031, the Institute is poised to embrace this transformative vision and emerge as a beacon of excellence on the global stage.

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MIL OSI Asia Pacific News –

January 28, 2025

MIL-OSI Europe: January 2025 euro area bank lending survey

Source: European Central Bank

28 January 2025

Credit standards tightened for firms in the fourth quarter of 2024, driven by higher perceived risks and lower risk tolerance
Credit standards remained unchanged for loans to households for house purchase but continued to tighten for consumer credit
Housing loan demand continued to rebound strongly, while demand for firm loans remained weak