Category: Pandemic

  • MIL-OSI USA: One Step at a Time: Labyrinths (Even Temporary Ones) Are a Place for Wellness

    Source: US State of Connecticut

    For centuries, labyrinths have served as symbols of personal journeys, struggles, and triumphs. In addition to being the setting for classic myths, labyrinths are also a place where, with each thoughtful step, one can wander and process topics weighing heavily on the mind.

    UConn Department of Sociology Professor-in-Residence Phoebe Godfrey, Department of Geography, Sustainability, Community and Urban Studies Professor Carol Atkinson-Palombo, and students recently installed a temporary labyrinth on campus to raise awareness for the possibility of a permanent remembrance labyrinth on the Storrs campus. The temporary chalk labyrinth can be found in between the Austin Building and Beach Hall until the next rain. 

    Godfrey is inspired to advocate for a future labyrinth as a place on campus where people can gather, and temporary labyrinths are a great way to share the idea and purpose of the project. “My classes are all linked to helping students connect more deeply with their bodies, and the Earth as part of their and planetary well-being, and labyrinths are a great way to do this,” says Godfrey. “Many other schools have built them for similar reasons, including a small one at Eastern Connecticut State University.” 

    After the success of the buddy bench project, Godfrey connected with UConn’s Director of Site Planning & University Landscape Architect Sean Vasington with the idea. 

    Alanna Torres-Laboy ’23 (CLAS), ’25 MA, a graduate assistant in UConn’s Dean of Students Office, walks on the temporary labyrinth set up on the Founders Green on Wednesday, April 23, 2025. (Sydney Herdle/UConn Photo)

    “For decades prior to the COVID-19 pandemic and since, health care providers have emphasized the importance of natural and built environments and their influence on our overall health and wellbeing, recommending nature-based programs as one way to help alleviate stress,” Vasington says. “There is also a strong connection between the quality of the conditions and features of a campus landscape and the mental health of students, including their ability to perform to their full potential academically. UConn is fortunate to have beautiful, open grounds and forests with ample walking paths and communal sitting areas; however it can also benefit from more quiet, reflective spaces within the campus core that connect us to nature. The proposed garden and labyrinth will do just that.” 

    Godfrey also attended a conference and met with educators at the University of Massachusetts who are working toward building a permanent installation on their campus. The UMass project has been underway for almost 10 years, and was bolstered by a study that suggested that labyrinth walking can lower blood pressure and pulse rate and increase overall satisfaction.  

    As with the current labyrinth installation, in Spring 2024 a temporary labyrinth was constructed between the Austin Building and Beach Hall for Earth Day. The installation included a journal for participants to share their thoughts or reflections, and the response was greater than anticipated.  

    Godfrey says around 25 people who visited the labyrinth last year wrote in the journal about their positive experiences interacting with the labyrinth. 

    “The diverse and yet collectively positive impact of labyrinths on university students has been documented,” says Godfrey. “Positive impacts include mental health and well-being, connecting walkers to a sense of place, sacredness and an ancient practice, and offering opportunities for lessons in contemplation and self-care. These claims were and continue to be supported by our student testimonies.” 

    Ella Barnett ‘24 (CLAS) helped with the construction of the labyrinth last spring and came back this year as an alum to help and document this year’s labyrinth through photography.

    “It has been beautiful to watch the labyrinth come to life for the second year in a row. I am grateful that it is able to create a space where individuals have an excuse to connect on the simplest terms, being a human with thought on Earth,” says Barnett.  

    Eduen Smith ’25 (CLAS) also helped construct this spring’s labyrinth.

    “This pop-up labyrinth is linked to a pop-up class from last fall based on the book ‘All We Can Save.’ The signs you see at the labyrinth were made by the students in class. They showcase some excerpts from various pieces in the book,” says Smith. “For me, this labyrinth is an example of how our students should be supported. A labyrinth is a simple creation that can impact folx’s mental health in profoundly positive ways. It’d also be a great permanent addition to our campus and even help beautify it!” 

    Though the spring installation was created with spray paint, other types of temporary labyrinths can be projected by light, constructed with yarn, or made of canvas or any other material — the creative possibilities are endless. 

    The potential project was granted space behind Arjona and engineered a few years ago, but to make it happen, Godfrey says, new momentum must be generated by recognizing the value of such ancient practice for our students now and into the future.  

    “The next challenge is to raise funding to complete the design and installation. Based on the success of the previous temporary installation, we hope this Spring installation will continue to build awareness and support for our permanent version,” says Godfrey. 

    When the weather is nice, people gather around Mirror Lake or Swan Lake, and landmarks like the former beloved Swing Tree and the buddy benches serve as areas where people can sit and enjoy the scenery. The labyrinth project’s collaborators hope the plan goes forward so the labyrinth can be another place on campus where students can hang out and enjoy the outdoors. In the meantime, to alleviate the end-of-semester stress, spend some time decompressing while you explore the latest temporary labyrinth installation.  

    The importance of decompressing and living in the moment is illustrated by a quote from a student who left a reflection of their time in the labyrinth in the journal:

    “My intention entering the labyrinth was to let go of this sense of hopelessness that has taken over me recently. As I took a stone, I prepared my body to take a breath and begin the walk. As I walked through the labyrinth, I imagined each hopeless thought as a stone that was weighing me down that dropped from my shoulders with every step I took. Finally, as I reached the center of the labyrinth, I placed the stone in the middle, symbolizing my own ‘pilgrimage for hope’. I felt connected to the Earth.” 
     

     

    MIL OSI USA News

  • MIL-OSI United Nations: UN Special Envoy for Road Safety visiting Viet Nam to stop the silent pandemic on the road

    Source: United Nations Economic Commission for Europe

    The United Nations Secretary-General’s Special Envoy for Road Safety, Jean Todt, is visiting Viet Nam from to 24 April 2025 to support global and national authorities’ road safety initiatives, three years after his last visit in the country. The Special Envoy will meet members of the Government in Hanoi as well as representatives of the private and public sectors two months after the Declaration of Marrakesh where Member states further engaged to accelerate the efforts for achieving the new Decade of Action for Road Safety with the goal of halving the number of the victims on the road by 2030.

    On 27-30 April, Mr. Jean Todt will speak at the 45th General Assembly of the International Association of Francophone Mayors (AIMF), to be held in Hue. This event will bring together 450 mayors, officials, and representatives of Francophone cities. This forum will highlight the vital importance of cooperation between cities to cultivate dialogue and international solidarity, and to jointly address major global challenges at local level, including safe and sustainable mobility for all.

    The silent pandemic on the road

    The Special Envoy Jean Todt qualified road crashes as “The Silent Pandemic on the Road”. Indeed, every year, the staggering toll of road-related fatalities globally claims the lives of 1.19 million people, leaving 50 million others with severe injuries. Furthermore, road crashes are the leading cause of death for children and young adults aged 5–29 years. Road crashes are disproportionately high in Western Pacific region, with a traffic fatality rate of 15.4 deaths per 100,000 population, compared to 6.5 deaths per 100,000 in Europe or representing three time the rate in Australia (WHO 2021).

    With 18 deaths/100,000 people (WHO 2021), Viet Nam faces a tragedy on the road. Motorbikes are the most type of transport vehicles, with over 50 million motorbikes, with a danger level 4 times higher than cars, 10 times than buses, and 13 times more than urban trams (ESCAP 2020). According to the Statistic of National Traffic Safety Committee (2024), 59.84% of the road traffic crashes are related to motorcycles and motorbikes.

    Towards enhanced road safety in Viet Nam

    The good news is that solutions exist. The use of proper helmets responding to UN regulations is for example a game changer in protecting the motorbike users.

    ” When we know that quality helmets can help to reduce the risk of fatal injury by 28-64%; head injury 58-60% and brain injury 47-74% (WHO, 2023), it is urgent to act to stop the carnage on the road”, highlights the Special Envoy.

    The use of safe vehicles, better road infrastructure and design to protect cyclists and pedestrians, efficient post-crash services and law enforcement also demonstrate conclusive results in reducing drastically the fatality rate.

    The pace of infrastructure development and the limit of public transport capacity unmatched the rapid rise in the number of vehicles causes serious traffic congestion, especially in big cities. Finding solutions to increase the awareness of using public transport systems instead of individual vehicles would contribute to safer and cleaner mobility for all. Education and raising awareness campaigns are also key.

    MIL OSI United Nations News

  • MIL-OSI United Nations: In Dialogue with Turkmenistan, Experts of the Committee against Torture Commend Turkmenistan on Installing Cameras in Places of Detention, Ask about Measures to Prevent Torture in Prisons and the Treatment of Homosexual Persons

    Source: United Nations – Geneva

    The Committee against Torture today concluded its consideration of the eighth periodic report of Turkmenistan, with Committee Experts commending the State for installing cameras in places of detention, while raising questions about measures taken to prevent torture in prisons and the treatment of homosexual persons.

    Liu Huawen, Committee Expert and Country Co-Rapporteur, welcomed that Turkmenistan said it placed high value on human beings, protecting their liberty and fundamental freedoms, and that it had adopted national action plans for protecting human rights, gender equality and children’s rights, and implemented measures to prevent child labour.  It was also commendable that video cameras had been installed in places of detention. Mr. Liu asked questions relating to the operation of these cameras.

    Todd Buchwald, Committee Expert and Country Co-Rapporteur, asked what measures were in place to ensure that legal safeguards against torture were implemented in practice?  Did the State’s laws ensure that medical examinations were independent and conducted within 24 hours of admission into detention centres?  Did all detained persons have the right to challenge their detention? Were all detentions recorded in registers and were there limitations on access to registers?  What measures were in place to ensure that detained persons were informed about the reasons for their arrest promptly in a language they understood both orally and in writing? 

    Mr. Liu said homosexuality remained criminalised in the State party, with up to two years in prison for consensual same sex relations.  Were there any investigations or prosecutions for consensual same sex conduct?  United Nations treaty bodies had repeatedly recommended that the State party repeal this legislation; had any action been taken to implement these recommendations? There had been reports that people who spoke out about issues relating to homosexuality were at risk of being arrested and tortured and that homosexual prisoners were subject to humiliating anal examinations.  Could the delegation comment on these reports?  What measures would be taken to guarantee the rights of lesbian, gay, bisexual and transgender persons? 

    The delegation said Turkmenistan took measures to prevent acts of torture and harsh treatment across its territory.  Over the reporting period, it had invested around 14 million United States dollars in construction and repair work for prisons, medical equipment, and training for staff.  In 2023, the number of convicts fell by 4.5 per cent compared to the previous year, and by a further three per cent in 2024, facilitated by measures taken to provide alternatives to custodial sentences, including parole and commuted sentences.  The occupancy rate in the State’s prisons was 83 per cent.  Food, medical and hygiene supplies were provided to inmates to ensure their health at the cost of the State. 

    The delegation said the State recognised human rights but there were certain specific aspects on which they would follow their own line.  Regarding the allegations of torture and ill-treatment against homosexuals, there had been no such allegations recorded.  If specific details could be provided, more specific information could be provided. 

    Introducing the report, Vepa Hajiyev, Permanent Representative of Turkmenistan to the United Nations Office at Geneva and head of the delegation, said a new edition of the Criminal Code, which entered into force in January 2023, included a definition of torture that was fully aligned with article 1 of the Convention.  The Code established criminal liability for acts of torture and explicitly excluded any justification for such acts, including references to orders, exceptional circumstances, or threats to security. Turkmenistan had established the absolute prohibition of torture, as required by international law.

    In closing remarks, Claude Heller, Committee Chair, said the Committee would highlight several priority recommendations within the concluding observations.  The Committee hoped to continue an open, ongoing dialogue with the State party.   

    In his concluding remarks, Mr. Hajiyev expressed gratitude to the Committee for having the opportunity to present the report. Thanks to the open dialogue over the last two days, members of the delegation had identified priority areas to focus on.  There was a need to review the State’s legislation to ensure it was fully aligned with the main provisions of the Convention. 

    The delegation of Turkmenistan consisted of representatives from the Supreme Court; Prosecutor General’s Office; Ministry of Internal Affairs; Ministry of Justice; Institute of State, Law and Democracy of Turkmenistan; and the Permanent Mission of Turkmenistan to the United Nations Office at Geneva.

    The Committee will issue concluding observations on the report of Turkmenistan at the end of its eighty-second session on 2 May.  Those, and other documents relating to the Committee’s work, including reports submitted by States parties, will be available on the session’s webpage.  Summaries of the public meetings of the Committee can be found here, and webcasts of the public meetings can be found here.

    The Committee will next meet in public on Friday, 25 April at 3 p.m. to continue its consideration of the seventh periodic report of Ukraine (CAT/C/UKR/7).

    Report

    The Committee has before it the third periodic report of Turkmenistan (CAT/C/TKM/3).

    Presentation of Report

    VEPA HAJIYEV, Permanent Representative of Turkmenistan to the United Nations Office at Geneva and head of the delegation, said that following the review of Turkmenistan’s second periodic report by the Committee, the State party had developed an action plan for the implementation of the Committee’s recommendations.  Some 50 subparagraphs of the Committee’s concluding observations had been fully or partially implemented; and 16 were currently being implemented.

    State, law enforcement, and civil society institutions were carrying out practical efforts to prevent conditions that could lead to cruel, inhuman, or degrading treatment or punishment.  The State was implementing national action plans on human rights, gender equality and children’s rights, and against corruption and trafficking, which had specific goals and objectives and indicators for evaluating the results attained.

    A new edition of the Criminal Code, which entered into force in January 2023, included a definition of torture that was fully aligned with article 1 of the Convention.  The Code established criminal liability for acts of torture and explicitly excluded any justification for such acts, including references to orders, exceptional circumstances, or threats to security. Turkmenistan had established the absolute prohibition of torture, as required by international law.

    In recent years, Turkmenistan had been implementing measures to strengthen the institutional capacity of the Ombudsman.  In 2024, new departments were created within the Ombudsman’s Office and the number of staff increased.  Amendments made in 2024 to the law on the Ombudsman enhanced the Ombudsman’s ability to restore violated rights and broadened the scope for applying preventive measures.  The Ombudsman’s Office continued to closely cooperate with international organizations to bring its mandate fully in line with the Paris Principles and was developing a roadmap for upgrading its status to category “A”.

    Turkmenistan had undertaken a comprehensive set of reforms aimed at improving the judicial system and enhancing the quality of justice.  The State Concept for the Development of the Judicial System for 2022-2028 aimed to improve the legislative framework governing the functioning of the courts, the qualifications of judicial system personnel, and the material and technical infrastructure of the courts, as well as expand international legal cooperation.  In April 2025, a new edition of the law on the judiciary was adopted, which incorporated key international standards related to the independence and competence of judges, as well as measures aimed at enhancing the efficiency of the courts.

    To modernise and standardise the process of professional development for judges and judicial staff, a new procedure for organising and conducting relevant training activities was approved in 2023.  Turkmenistan was also implementing a phased digitalisation of its judiciary to enhance transparency, facilitating video and audio recording of court proceedings and digital access to judicial information and services.  Between 2020 and 2025, lawyers provided legal assistance in 530 cases of detention where unlawful actions falling under the scope of the Convention were identified.

    In line with the Committee’s concluding observations, internal regulations governing conditions of detention had been introduced.  These rules covered living conditions, medical care, and the rights to phone calls, visits, walks, and to receive parcels.  Particular attention was paid to medical supervision and the documentation of physical injuries.  Every individual admitted to a penitentiary facility underwent a mandatory medical examination.  Any injuries discovered were documented, and in cases where violence was suspected, an additional investigation was carried out. 

    Between 2020 and 2023, large-scale reconstruction and capital repairs were carried out in 12 penitentiary institutions.  These efforts aimed to bring detention conditions in line with the Mandela Rules. Monitoring visits by the Ombudsman and Public Monitoring Commissions were regularly organised – a total of 20 visits to places of detention were conducted in 2023-2024 alone.

    Criminal procedural legislation explicitly prohibited the use of evidence obtained through torture, threats, deception, or cruel treatment.  All institutions under the jurisdiction of the Ministry of Internal Affairs had implemented the practice of video recording interrogations to ensure transparency and help prevent potential abuses.

    The Criminal Code provided for liability for violent acts within the household.  A national survey was conducted in cooperation with the United Nations Population Fund on domestic violence against women, and based on its findings, a roadmap for the prevention of domestic violence for 2022–2025 was developed.  The State aimed to introduce clear definitions, establish penalties, and create comprehensive protection mechanisms for vulnerable groups, including conducting awareness-raising campaigns.  Human rights education and the prevention of torture were integral components of the training of law enforcement personnel.

    A cooperation plan between the Government and the International Committee of the Red Cross Representation for 2025 had been approved, which included seminars and lectures on international standards of law enforcement for relevant agency personnel, and awareness-raising initiatives on international norms related to the treatment of persons deprived of liberty and to penitentiary standards. Discussions were ongoing on the possible organization of visits to places of detention by the International Committee of the Red Cross.  Direct contact had also been established since 2024 with Human Rights Watch and other human rights organizations.

    Questions by Committee Experts

    TODD BUCHWALD, Committee Expert and Country Co-Rapporteur, said there were reports of numerous enforced disappearances in Turkmenistan, the victims of which remained behind bars without access to family members.  There were 162 reports of such disappearances by the Prove-They-Are-Alive campaign, including 29 persons who had died in custody. There were also reports of cruel treatment of detainees, lack of independence of the judiciary, harassment of journalists and human rights defenders, and a culture of impunity. Did the State have sufficient mechanisms to identify torture and ill-treatment?  What had the State party done to investigate the 162 reported cases of enforced disappearance?

    What measures were in place to ensure that legal safeguards against torture were implemented in practice? Did the State’s laws ensure that medical examinations were independent and conducted within 24 hours of admission into detention centres?  Did all detained persons have the right to challenge their detention?  Were all detentions recorded in registers and were there limitations on access to registers?  What measures were in place to ensure that detained persons were informed about the reasons for their arrest promptly in a language they understood both orally and in writing? 

    In which circumstances did the right to free legal assistance for accused persons apply?  There were cases in which accused persons had reportedly struggled to obtain legal representation.  How did the State ensure that lawyers were not dissuaded from representing clients seen as controversial, and that lawyers were well-trained and independent?  There were reports of closed trials; what legal rules governed such trials?  Was the right to immediately inform family members of detention provided in law and in practice?  Were officers that failed to provide these safeguards punished? How many complaints had been received related to the lack of provision of safeguards and what investigations had been carried out in response?

    Turkmenistan remained largely closed to international scrutiny.  It had issued a standing invitation to special procedures in 2018 but had not accepted all but one of the 15 requests for visits received since, and the one visit that was accepted had not yet been carried out.  How would the State party improve cooperation with special procedures? Did the International Committee of the Red Cross have access to places of deprivation of liberty?  How many meetings between representatives of international organizations and detained persons had been held in the last three years, and how were such persons protected from reprisals?

    What was the Government doing to ratify the Optional Protocol and to accept the Committee’s jurisdiction to receive individual communications?  What awareness raising campaigns was the State party carrying out regarding the Committee’s concluding observations?  Were translated versions of the concluding observations published online?  The State had not provided data in response to several of the questions posed by the Committee in the list of issues.  What measures were in place to develop the State’s capacities in data collection?

    There were concerns that the Ombudsman’s Office lacked independence and had not taken steps to address torture and ill-treatment.  Its reports failed to adequately address human rights violations, and it had not submitted a report to the Committee before the dialogue.  What was the State party doing to strengthen the mandate of the Ombudsman’s Office to investigate human rights violations?  The Office had no mandate to conduct visits to places of detention; would such a mandate be established?  Did the Ombudsman require prior permission to conduct such visits? 

    Complaints from individuals could only be considered by the Ombudsman within one year, eliminating the possibility of investigating historical crimes.  Would this rule be eliminated?  What measures were in place to ensure that complaints submitted to the Ombudsman were kept confidential?  There had been few appeals to the Ombudsman’s Office by persons deprived of liberty; why was this?  Had the Office recommended ratifying international human rights treaties and facilitating visits by special procedures?  How many times had the Ombudsman concluded that there had been a human rights violation and what actions were taken in response?

    Turkmenistan had not granted asylum to any person since 2005.  How was the State party strengthening its asylum procedures?  Did it cooperate with the United Nations High Commissioner for Refugees?  Persons unable to document their lack of nationality were denied statelessness status. Was the State party working to address this issue?

    Mr. Buchwald cited reports of prison staff torturing prisoners, including by beating a man to death with a soldering iron, denying an ill prisoner medical treatment, and torturing a man with an electric current.  How did the State party prevent torture in detention and investigate all reported cases? There were also reports of forcible transfers of critics of the State living abroad to Turkmenistan, where they were subjected to abuse and enforced disappearance, and of travel bans imposed on activists who opposed the Government.  How would the State party guarantee activists’ safety and right to travel?

    LIU HUAWEN, Committee Expert and Country Co-Rapporteur, welcomed that the State said it placed high value on human beings, protecting their liberty and fundamental freedoms, and that it had adopted national action plans for protecting human rights, gender equality and children’s rights, and implemented measures to prevent child labour. 

    The Committee also welcomed the training activities carried out for the police.  However, there was no mechanism for assessing the effectiveness of this training.  Was training mandatory and how many personnel had participated?  It was commendable that annual training was provided for judges of the Supreme Court.  What training was provided for judicial personnel in other courts and medical personnel involved in the treatment of detainees?  Did such training address the revised Istanbul Protocol? 

    The Committee was concerned by the absence of guidelines on the prohibition of torture in the healthcare sector?  Would such guidelines be developed?  Were there ongoing training programmes on the prohibition of torture for police officers and prison staff?  Were international personnel involved in the design and presentation of this training?

    It was commendable that video cameras had been installed in places of detention.  What percentage of places of deprivation of liberty had been equipped? Were all interrogations recorded? Were there consequences for failing to record interrogations?  Were there limitations on access to recordings by detained persons and their lawyers?

    How many persons were detained in Turkmenistan’s prisons and for what period of time?  What efforts were underway to expand alternatives to detention? There were reports that prisons held nearly three times their capacity, and that Turkmenistan had the fourth highest incarceration rate globally.  What steps had been taken to reduce occupancy rates?

    There were reports of failures to provide timely medical examinations and delays in isolating prisoners with tuberculosis, which increased the risk of spread of the disease.  Prisoners reportedly needed to pay for medications that should be provided for free.  Some detainees went months without being provided access to leisure facilities within prisons.  Could the delegation comment on these issues?

    Persons could reportedly be placed in solitary confinement for up to three months, left in total darkness with a lack of access to water or basic hygiene.  How was the use of solitary confinement documented and regulated? Had measures been taken to gradually end the use of prolonged solitary confinement, which was reportedly used as a tool of repression against political prisoners?  What rules governed visitation rights and phone calls for persons in solitary confinement?

    How did the State party ensure that meetings between lawyers and remand prisoners were private?  Were there provisions prohibiting the interrogation of suspects before lawyers were present?  Could refusals to give testimony be used against detainees in court?

    The Committee called for data on inter-prisoner violence and deaths in custody, and investigations into such cases. How did the State party ensure that family members could request independent autopsies of deaths in custody and that victims of violence in prisons could report the incident? Police officers had the right to use physical force to protect the rights and freedoms of citizens and prevent “socially dangerous acts” under State law.  This law seemed exceedingly broad.  Did it apply to the use of firearms?  Were there more specific rules governing the use of force?  What investigations had been carried out into excessive use of force by the police and what were their outcomes?

    There were reports that patients in psychiatric facilities were abused by staff.  What measures were in place to improve complaints mechanisms in such facilities?  How did the State party oversee involuntary hospitalisations?  In how many cases had restraints been used in psychiatric facilities, and what types of restraints were used?

    How did the State party ensure that appropriate support services were provided to victims of torture?  What measures were in place to provide redress, compensation and rehabilitation to victims?

    The Committee welcomed the criminalisation of corporal punishment in all settings and measures taken to protect children from violence, including the appointment of inspectors specialising in violence against children.  How many cases had they investigated?  The Committee also welcomed the establishment of juvenile courts.  How many cases had they assessed?  What measures were in place to prevent the detention of juveniles?

    Gender-based violence had not been established as a separate crime in the Criminal Code, though there were many cases of gender-based violence in the State.  Had the roadmap developed to prevent gender-based violence been published online?  What progress had been made in implementing it?  What were the obstacles to adopting a law on gender-based violence?  How did the State party evaluate its awareness raising activities on gender-based violence?  Were victims support services in place?  How many shelters for victims and hotlines for reporting violence had been established? 

    High school girls were reportedly subjected to forced virginity tests, and information on girls found to have had sexual relations was reportedly passed to police.  How did the State party prevent this practice?

    Other Committee Experts asked questions on the national action plan on countering terrorism and the international organizations the State party partnered with to implement the plan; how legal safeguards were ensured for persons suspected of terrorism; the number of convictions imposed under anti-terrorism legislation; reforms adopted to align the legislative framework on terrorism with the State’s international obligations; the number of juveniles, particularly girls, currently in detention and the conditions in which they were held; measures to prevent overcrowding and ensure access to healthcare in prisons; and complaints and monitoring mechanisms in place for juvenile detention.

    Responses by the Delegation

    The delegation said Turkmenistan took measures to prevent acts of torture and harsh treatment across its territory.  Over the reporting period, it had invested around 14 million United States dollars in construction and repair work for prisons, bought medical equipment, and ensured training for staff.  In 2023, the number of convicts fell by four and a half per cent compared to the previous year, and by a further three per cent in 2024, facilitated by measures taken to provide alternatives to custodial sentences, including parole and commuted sentences. 

    The occupancy rate in the State’s prisons was 83 per cent.  Food, medical and hygiene supplies were provided to inmates to ensure their health at the cost of the State.  Allegations of infected inmates not being separated from other inmates were unfounded; such inmates were transferred to prison hospitals for treatment.  The State had examined eight complaints from prisoners in 2023 and five in 2024, finding no wrongdoing by State officials in each case.  Regular training sessions were organised for prison staff, which addressed basic standards for treating inmates.  Over 2,000 training sessions were carried out between 2022 and 2024.

    Turkmenistan had continued to develop its legislation on torture and other cruel, inhuman or degrading treatment.  Between 2022 and 2024, orders were issued on strengthening supervisory work on places of deprivation of liberty and on creating a special body for regulating medical examinations in prisons.

    The Ombudsman’s Office had access to all places of deprivation of liberty and did not need prior permission to conduct visits.  It verified the sanitary norms of establishments, the right to food and healthcare, and the right to visits and to receive parcels from family members. The Office had issued recommendations on improving detention facilities and healthcare services in prisons that the Government was working to implement.  No complaints had been received by the Ombudsman on the lack of provision of parole, or from inmates in detention centres for women or juveniles.

    Work had been undertaken to ensure that police stations and remand prisons were equipped with audio-visual recording devices.  Access to recordings was given to the Ombudsman and legal counsel.

    The national action plan on gender equality for 2021-2025 included measures to combat gender-based violence against women and girls, including domestic violence.  A survey conducted by the State showed that some 12 per cent of women in Turkmenistan had been subjected to domestic violence.  A roadmap to implement the survey’s recommendations had been developed, which included plans to develop a rapid response mechanism for domestic violence. 

    The State had established a pilot system of family support centres where social workers provided support for victims of violence; this would soon be expanded.  There were also hotlines that victims could use to report violence.  The Government was studying legislation on domestic violence in other countries with a view to developing such legislation domestically.

    The delegation said Turkmenistan regularly provided information on individual cases to various United Nations structures.  Turkmenistan had given information concerning individuals to certain countries, and special procedures had closed these cases.  The State would continue to provide information to the special procedures and other interested parties.  There was no special complaints mechanism for cases of cruel or inhumane treatment, but a complaint could be submitted to authorities of law enforcement via writing or in person.  The Special Prosecutor visited places of detention to monitor the work of the penitentiary institutions. 

    According to the Criminal Code, the diagnosis of an illness could be a ground for early release, and a decision would be taken by a court.  The delegation cited several cases, including one prisoner who in 2017 was convicted of smuggling psychoactive substances, and was pardoned in 2020.  Three years later, another criminal case was initiated against him, after which he was placed on a wanted list.  He hid in a mountainous area for some time without food and medication, surviving on psychoactive substances.  When he was detained, he already had multiple forms of bodily harm, developed during his time in the mountains, and he died three days after he was detained due to an overdose from psychoactive substances. Evidence that his cause of death was bodily harm due to torture was not true and this had been confirmed by the forensic investigation.  Turkmenistan’s actions throughout all cases had been aimed at protecting its citizens.

    The memorandum on humanitarian visits had not yet been signed, as negotiations had been interrupted six years ago.  In 2024, the Turkmen side took the initiative to discuss the text again and was waiting to hear from the International Criminal Court.  The State was ready to consider requests from the International Criminal Court to visit places of detention. 

    Immediately after the appeal of the High Commissioner for Refugees to grant asylum to citizens of Afghanistan, Turkmenistan as a neighbouring country expressed willingness to make all resources available to facilitate transport to third countries.  About 150 Afghan citizens received temporary visas while they awaited permission to move to other countries.  A person had the right to continue to stay in the country until their status was determined officially, whether this was a stateless person, or an individual of another country.  During the COVID-19 pandemic, amendments were made to the law on migration which provided for the option to extend the validity of passports in emergency situations.  A passport could only be renewed twice and only in extraordinary legal circumstances.

    Not all countries of the world had the practice of issuing passports abroad, as this required significant resources and would become an additional burden on the State.  Primary requests to obtain a passport abroad could be submitted electronically.  The Government was looking to simplify the procedure for issuing passports. 

    Solitary confinement was only meted out to prisoners for intentional violations and measures.  Training courses regarding torture and solitary confinement were provided to the Ministry of Interior staff.  A learning course had been started for the doctors working in the penitentiary system to update their knowledge of tuberculosis and treatment.  Medical units were present within each penitentiary establishment.  The treatment plan for the multi-drug-resistant tuberculosis was fully functioning.  Work was ongoing to deal with cases of tuberculosis, and penitentiary administrations were responsible for ensuring the good health of convicts.

    Last month, a monitoring visit had been conducted to see seven Turkish prisoners serving sentences in Turkmenistan. There was only one establishment for juvenile offenders, and the occupancy rate was 22 per cent of its total capacity.  Juvenile female offenders were held separately from male offenders. 

    Turkmenistan had successfully implemented a national strategy to prevent violent extremism and combat terrorism and was preparing the new strategy for 2025-2030.   

    Around 94 court rooms had audio and video cameras, representing more than 90 per cent of courtrooms in the country. This work on the digitalisation of courts was continuing.  The accused had the right to view all documents related to the case, including documents and video recordings.  Relevant work was carried out to implement the provisions of the Convention.  The new version of the Criminal Code entered into force in January 2023 and punishment for certain crimes had been reduced. 

    All courts in Turkmenistan had special rooms for minors, increasing their protection.  A new provision had been introduced, in which a minor committing an offence for the first time, providing it was a medium offence or below, would not be imprisoned.  There had been a drop in the numbers of minors imprisoned by 35 per cent in 2024, compared to 2020, as a result. 

    According to the Criminal Code, data should not be considered admissible in court if acquired through violations of the law, including torture, violence or threat.  Courts now had specialised judges on family matters to ensure the best interests of children.  A lawyer was available from the moment of detention or indictment.  In the event of remand of a minor, or a person with a disability, there were specific provisions.  Use of an interpreter could be requested. 

    In each case of detention, a notification was sent in writing to the Office of the Public Prosecutor, within 24 hours from the moment of detention.  The Office of the Public Prosecutor had the right to cancel an unlawful detention.  Without the authorisation of the Public Prosecutor, a detainee needed to be released after 24 hours, with the arrest communicated to close relatives. 

    Disciplinary measures were taken against staff and other officials who breached guaranteed safeguards.  The Code of Criminal Procedure was in keeping with international treaties, which meant there were guarantees to safeguard the rights of the accused. 

    To date, Turkmenistan had two national action plans on combatting human trafficking.  The penalty for this crime had been strengthened to between 15 to 20 years in prison.  A Commission on Combatting Human Trafficking had been established in Turkmenistan, which included 13 State bodies working on this issue.  In July 2024, the first meeting of the Commission was held.  The Commission was tasked with ensuring the implementation of the national action plan, including through prevention, protection, and prosecution, providing assistance to victims, and carrying out awareness raising events.  The national action plan 2020-2025 was adopted by a decree. 

    The Ministry of Justice provided support to the Bar Association of the country.  There were six associations of lawyers in Turkmenistan.  Over the last four years, lawyers in Turkmenistan had participated in 48 training sessions on human rights and had carried out more than 3,000 visits to places to detention.  A conference had taken place where participants from many countries exchanged views on how to better protect lawyers.  The State stood ready to continue work in the legal area, promote a legal culture, and strengthen international cooperation.

    There had been no complaints recorded about forced virginity tests, but the delegation would look into any case if information was provided.  In certain cases, law enforcement bodies could ask for medical tests to be carried out in the framework of existing legislation.  A roadmap had been developed for the ratification of the Optional Protocol and work was ongoing in this respect. 

    Questions by Committee Experts

    TODD BUCHWALD, Committee Expert and Country Co-Rapporteur, said many bodies and individuals had made allegations, which the State party had denied.  The bodies making these allegations were highly credible.  The Committee recommended the ratification of the Optional Protocol to the Convention as a critical step for the State party, as well as having a regular relationship with the International Criminal Court.  Were the recommendations from Committees made available in all major newspapers? 

    The Ombudsman had not received any complaints which was concerning.  Did this suggest a need to deal more assertively with the problem?  It was positive that the Ombudsman had access to all places of deprivation of liberty; however, it was inferred that she had not visited some facilities.  Was this correct?  Was it possible to share the data responsive to the Committee’s list of issues?  There was data available on overcrowding, so it would be helpful to provide disaggregated data split by facility. 

    How was it determined whether information published by journalists was true, accurate or impartial?  What were the penalties for publishing information which was determined not to fall under this category?  What were the prospects for revising the law so there would be no statute of limitations for the crime of torture? 

    LIU HUAWEN, Committee Expert and Country Co-Rapporteur, said there had been progress in the field of family law.  Today, domestic violence was not a matter of private law, but a focus of public law.  Marriage and family membership should not deprive any person of her or his basic human rights. 

    Turkmenistan’s strict abortion restrictions could create a cruel, inhumane or degrading environment for women, with abortion banned after five weeks, which was before many women realised they were pregnant.  Reproductive health care was limited, forcing women towards unsafe methods which endangered their health and lives.  These laws contributed to preventable maternal deaths and increased health risks. It was regretful that Turkmenistan did not provide access to emergency contraceptives. 

    The Committee suggested that the State party align its legal framework with international standards.  Would the State party take concrete steps to ensure access to safe abortion nation-wide and to reduce teenage pregnancies, including by providing access to contraceptives and reproductive services? Would the State ensure that doctors and medical professionals provided safe abortions for women whose lives were at risk due to pregnancy? 

    Homosexuality remained criminalised in the State party, with up to two years in prison for consensual same sex relations.  Were there any investigations or prosecutions for consensual same sex conduct?  United Nations treaty bodies had repeatedly recommended that the State party repeal this legislation; had any action been taken to implement these recommendations?  There had been reports that people who spoke out about issues relating to homosexuality were at risk of being arrested and tortured and that homosexual prisoners were subject to humiliating anal examinations.  Could the delegation comment on these reports? 

    What measures would be taken to guarantee the rights of lesbian, gay, bisexual and transgender persons?  Would the State party provide systematic training for law enforcement officers, police officers and members of the judiciary on human rights standards for gender and sexual identity orientation?

    As a neutral country, Turkmenistan could play a more constructive and unique role in international cooperation. It was hoped Turkmenistan would make a greater contribution to global governance, including through the effective implementation of the Convention. 

    A Committee Expert asked if there was monitoring of places of deprivation of liberty where minors were held? Who carried out this monitoring activity? 

    Another Expert asked about the legislation to combat terrorism; could more specific information be provided? 

    Responses by the Delegation 

    The delegation said cooperation was something which Turkmenistan needed to improve.  The State party worked with various international organizations and human rights committees in Geneva.  All decisions and conclusions voiced within the Committee needed to be based on established and recognised standards.  Often the opinions of law enforcement bodies were interpreted objectively, and the State was trying to bridge the gap by involving representatives of civil society to enable human rights organizations to better understand the individual cases. There was a clear imbalance of information, and the State was doing its best to address this.  The State did not plan the official publication of results of the Committee’s recommendations, but if others wished to publish them, they could do so.

    The Ombudsperson visited prisons, but it was important to enhance the capacities of the institution to ensure it had greater access to places of detention.  The State recognised human rights but there were certain specific aspects on which they would follow their own line.  Regarding the allegations of torture and ill-treatment against homosexuals, there had been no such allegations recorded.  If specific details could be provided, more specific information could be provided. 

    As a neutral state, Turkmenistan was working to advocate for the values of peace and trust to ensure the Sustainable Development Goals were met.   

    Currently, Turkmenistan was a party to the 19 legal instruments combatting terrorism.  The law on combatting terrorism included legal protection of citizens for their participation in combatting terrorism. The State had extensive levels of cooperation in this area.  There were no issues of overcrowding in prisons.  The State rejected allegations that there had been an increase in the number of minors detained.  There had been single cases, which did not represent a serious problem in the country. Institutions for minors serving sentences functioning under the auspices of the Ministry of Interior were monitored by the Ombudsman and other institutions. 

    Turkmenistan worked closely with the counterterrorism mechanism of the United Nations.  A seminar had been held in Doha about the spread of terrorist ideas through the internet. 

    Women had the permission to interrupt pregnancies after the established timeframe, but this was based on an individual approach, relating to specific circumstances.  Having abortions outside of medical institutions involved serious risks to the health of women.  To prevent illegal abortions, there were special provisions in the law of responsibility.  Written agreement was required from parents only if the girl was under the age of 18. 

    In 2023, the General Prosecutor’s Office of Turkmenistan, in conjunction with the United Nations Development Programme, organised special seminars attended by over 100 participants from law enforcement agencies.  Such events, relating to refresher training, took place all over the world, including in the United States, Europe and Asia.  In March this year, Turkmenistan held a briefing relating to the presentation of a national plan on combatting trafficking. 

    Turkmenistan had ratified a significant number of legal instruments and it received bilateral requests on extradition related to criminal prosecutions, including for crimes of torture.  When a person was extradited, Turkmenistan took into account all guarantees provided in relevant United Nations Conventions. In each case, the situation of the person was reviewed to ensure the person would not be subject to torture in the country to which the person was extradited.  It was necessary to receive a written confirmation from the State that torture would not be used against those individuals. 

    Closing Remarks 

    CLAUDE HELLER, Committee Chairperson, said the delegation had 48 hours to provide the Committee with additional information.  The Committee would highlight several priority recommendations within the concluding observations.  The Committee hoped to continue an open, ongoing dialogue with the State party.   

    VEPA HAJIYEV, Permanent Representative of Turkmenistan to the United Nations Office at Geneva and head of the delegation, expressed gratitude to the Committee for having the opportunity to present the report.  Thanks to the open dialogue over the last two days, members of the delegation had identified priority areas to focus on.  The Committee’s recommendations would be thoroughly reviewed.  There was a need to review the State’s legislation to ensure it was fully aligned with the main provisions of the Convention.  Any progress required work and readiness to move forward. 

    ___________

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CAT25.007E

    MIL OSI United Nations News

  • MIL-OSI: Lakeland Financial Reports a 12% Increase in Net Interest Income and Organic Loan Growth of 4%

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, Ind., April 25, 2025 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of $20.1 million for the three months ended March 31, 2025, which represents a decrease of $3.3 million, or 14%, compared with net income of $23.4 million for the three months ended March 31, 2024. Diluted earnings per share were $0.78 for the first quarter of 2025 and decreased $0.13, or 14%, compared to $0.91 for the first quarter of 2024. On a linked quarter basis, net income decreased $4.1 million, or 17%, to $24.2 million. Diluted earnings per share decreased $0.16, or 17%, from $0.94 on a linked quarter basis.

    Pretax pre-provision earnings, which is a non-GAAP measure, were $31.0 million for the three months ended March 31, 2025, an increase of $1.7 million, or 6%, compared to $29.3 million for the three months ended March 31, 2024.

    “Our first quarter results are highlighted by double digit growth in net interest income and strong net interest margin expansion,” stated David M. Findlay, Chairman and CEO. “Further, we continued to experience healthy loan growth that was funded with equally positive deposit growth. The Lake City Bank team delivered encouraging operating results in the quarter.”

    Quarterly Financial Performance

    First Quarter 2025 versus First Quarter 2024 highlights:

    • Tangible book value per share grew by $1.80, or 7%, to $26.85
    • Average loans grew by $214.9 million, or 4%, to $5.19 billion
    • Core deposits grew by $402.5 million, or 7%, to $5.83 billion
    • Net interest margin improved 25 basis points to 3.40% versus 3.15%
    • Net interest income increased by $5.5 million, or 12%
    • Revenue grew by 6% from $60.0 million to $63.8 million
    • Provision expense of $6.8 million, compared to $1.5 million
    • Watch list loans as a percentage of total loans increased to 4.13% from 3.67%
    • Pretax, pre-provision earnings increased by $1.7 million, or 6%
    • Common equity tier 1 capital improved to 14.51%, compared to 14.21%
    • Tangible capital ratio improved to 10.09%, compared to 9.80%
    • Average equity increased by $51.0 million, or 8%

    First Quarter 2025 versus Fourth Quarter 2024 highlights:

    • Tangible book value per share grew by $0.38, or 1%, to $26.85
    • Average loans grew by $99.3 million, or 2%, to $5.19 billion
    • Net interest margin improved 15 basis points to 3.40% versus 3.25%
    • Net interest income increased by $1.2 million, or 2%
    • Provision expense of $6.8 million, compared to $3.7 million
    • Watch list loans as a percentage of total loans remained at 4.13%
    • Pretax, pre-provision earnings decreased $1.9 million, or 6%
    • Common equity tier 1 capital of 14.51%, compared to 14.64%
    • Tangible capital ratio of 10.09%, compared to 10.19%

    Capital Strength

    The company’s total capital as a percentage of risk-weighted assets improved to 15.77% at March 31, 2025, compared to 15.46% at March 31, 2024, and down from 15.90% at December 31, 2024. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect the company’s robust capital base.

    The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.09% at March 31, 2025, compared to 9.80% at March 31, 2024, and down from 10.19% at December 31, 2024. Unrealized losses from available-for-sale investment securities were $188.3 million at March 31, 2025, compared to $189.9 million at March 31, 2024 and $191.1 million at December 31, 2024. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, improved to 12.19% at March 31, 2025, compared to 12.03% at March 31, 2024, and down from 12.37% at December 31, 2024.

    As announced on April 8, 2025, the board of directors approved a cash dividend for the first quarter of $0.50 per share, payable on May 5, 2025, to shareholders of record as of April 25, 2025. The first quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the first quarter of 2024.

    The board of directors also reauthorized and extended the company’s share repurchase program through April 30, 2027 with remaining aggregate purchase price authority of $30.0 million. The company anticipates activating the share repurchase program during the second quarter of 2025.

    Kristin L. Pruitt, President commented, “We believe that the recent stock price performance, driven by the impact of tariff activity, provides us with an opportunity to return capital to shareholders at attractive prices through our repurchase plan. Further, our strong capital levels continue to provide capacity for organic loan growth in our Indiana markets. Our capital position also supports our continued growth in the dividend paid to shareholders.”

    Loan Portfolio

    Average total loans of $5.19 billion in the first quarter of 2025 increased $214.9 million, or 4%, from $4.97 billion for the first quarter of 2024, and increased $99.3 million, or 2%, from $5.09 billion for the fourth quarter of 2024. Total loans, net of deferred loan fees, increased by $224.8 million, or 4%, from $5.00 billion as of March 31, 2024, to $5.23 billion as of March 31, 2025. The increase in loans occurred across much of the portfolio with our commercial real estate and multi-family residential loan portfolio growing by $143.4 million, or 6%, our commercial and industrial loan portfolio growing by $46.3 million, or 3%, our consumer 1-4 family mortgage loans portfolio growing by $39.7 million, or 9%, and our agri-business and agricultural loan portfolio growing by $15.9 million, or 4%. These increases were offset by a decrease to other commercial loans of $25.4 million, or 21%. On a linked quarter basis, total loans, net of deferred loan fees, increased by $104.9 million, or 2%, from $5.12 billion at December 31, 2024. The linked quarter increase was primarily a result of growth in total commercial and industrial loans of $72.7 million, or 5%, growth in total commercial real estate and multi-family residential loans of $28.3 million, or 1%, and growth in our consumer 1-4 family mortgage loans portfolio of $10.0 million, or 2%.

    Commercial loan originations for the first quarter included approximately $365.0 million in loan originations, offset by approximately $268.0 million in commercial loan pay downs. Line of credit usage increased to 43% as of March 31, 2025, compared to 39% at March 31, 2024 and 41% as of December 31, 2024. Total available lines of credit contracted by $153.0 million, or 3%, as compared to a year ago, and line usage increased by $122.0 million, or 7%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $100.6 million for this sector represented 2% of total loans at March 31, 2025, a decrease of $1.1 million, or 1%, from December 31, 2024. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 214% of total risk-based capital at March 31, 2025.

    “We are encouraged by the continued organic loan growth during the quarter. In particular, we are pleased to see the upward trend in commercial line utilization, which reached 43% in the first quarter compared to 39% a year ago. Commercial and Industrial loan growth was a highlight this quarter and positively impacted our commercial line utilization,” added Findlay. “Linked quarter loan growth was largely driven by expansion in working capital lines of credit loans and construction and land development loans.”

    Diversified Deposit Base

    The bank’s diversified deposit base has grown on a year over year basis and on a linked quarter basis.

    DEPOSIT DETAIL
    (unaudited, in thousands)
     
      March 31, 2025   December 31, 2024   March 31, 2024
    Retail $ 1,787,992   30.0 %   $ 1,780,726   30.2 %   $ 1,770,007   31.5 %
    Commercial   2,336,910   39.2       2,269,049   38.4       2,117,536   37.7  
    Public funds   1,709,883   28.7       1,809,631   30.7       1,544,775   27.5  
    Core deposits   5,834,785   97.9       5,859,406   99.3       5,432,318   96.7  
    Brokered deposits   125,409   2.1       41,560   0.7       185,767   3.3  
    Total $ 5,960,194   100.0 %   $ 5,900,966   100.0 %   $ 5,618,085   100.0 %
     

    Total deposits increased $342.1 million, or 6%, from $5.62 billion as of March 31, 2024, to $5.96 billion as of March 31, 2025. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $402.5 million, or 7%. Total core deposits at March 31, 2025 were $5.83 billion and represented 98% of total deposits, as compared to $5.43 billion and 97% of total deposits at March 31, 2024. Brokered deposits were $125.4 million, or 2% of total deposits, at March 31, 2025, compared to $185.8 million, or 3% of total deposits, at March 31, 2024.

    The increase in core deposits since March 31, 2024, reflects growth in all three core deposit components. Commercial deposits grew annually by $219.4 million, or 10%, to $2.34 billion. Commercial deposits as a percentage of total deposits expanded to 39%, up from 38%. Public funds deposits grew annually by $165.1 million, or 11%, to $1.71 billion. Public funds deposits as a percentage of total deposits was 29%, up from 28%. Growth in public funds was positively impacted by the addition of new public funds customers in the Lake City Bank footprint, including their operating accounts. Retail deposits expanded by $18.0 million, or 1%, to $1.79 billion. Retail deposits as a percentage of total deposits was 30% of total deposits, down from 32%.

    On a linked quarter basis, total deposits increased $59.2 million, or 1%, from $5.90 billion at December 31, 2024, to $5.96 billion at March 31, 2025. Core deposits decreased by $24.6 million, or less than 1%, while brokered deposits increased by $83.8 million, or 202%. The linked quarter reduction in core deposits resulted primarily from a seasonal decrease in public funds deposits of $99.7 million, or 6%. Offsetting this increase was an increase in commercial deposits of $67.9 million, or 3%, and an increase in retail deposits of $7.3 million, or less than 1%.

    “Annual core deposit growth of 7% continues to provide liquidity to fund loan growth. We continue to see opportunities to gain market share in our Indiana footprint,” noted Lisa M. O’Neill, Executive Vice President and Chief Financial Officer. “Our diversified funding base is stable, and average checking account balances continue to maintain liquidity in excess of pre-pandemic levels.”

    Average total deposits were $5.87 billion for the first quarter of 2025, an increase of $244.3 million, or 4%, from $5.63 billion for the first quarter of 2024. Average interest-bearing deposits drove the increase in average total deposits and increased by $260.1 million, or 6%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $439.5 million, or 14%. Offsetting this increase was a reduction in average time deposits of $167.7 million, or 17%, and a decrease to average savings deposits of $11.8 million, or 4%. Average noninterest-bearing demand deposits decreased by $15.8 million, or 1%.

    On a linked quarter basis, average total deposits decreased by $136.4 million, or 2%, from $6.01 billion for the fourth quarter of 2024 to $5.87 billion for the first quarter of 2025. Average interest bearing deposits drove the decrease to total average deposits, which decreased by $112.8 million, or 2%. Driving the decrease to average interest bearing deposits were decreases to total average time deposits of $102.7 million, or 11%, and interest bearing checking accounts of $19.0 million, or 1%. Average noninterest bearing demand deposits decreased by $23.6 million, or 2%.

    Checking account trends as of March 31, 2025 compared to March 31, 2024, include growth of $222.5 million, or 17%, in aggregate public fund checking account balances, growth of $212.3 million, or 11%, in aggregate commercial checking account balances, and growth of $35.5 million, or 4%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 7% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during the prior twelve months.

    Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 57% as of March 31, 2025, compared to 62% at December 31, 2024, and 54% at March 31, 2024, reflecting changes in core deposits and growth in public fund deposits over those periods. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund (which insures public funds deposits in Indiana), were 29% of total deposits at March 31, 2025, compared to 32% at December 31, 2024, and 27% at March 31, 2024. At March 31, 2025, 98% of deposit accounts had deposit balances less than $250,000.

    Net Interest Margin

    Net interest margin was 3.40% for the first quarter of 2025, representing a 25 basis point increase from 3.15% for the first quarter of 2024. This improvement was driven by a reduction in the company’s funding costs, with interest expense as a percentage of average earning assets falling by 45 basis points from 2.82% for the first quarter of 2024 to 2.37% for the first quarter of 2025. Offsetting the decrease in funding costs was a decrease to earning asset yields of 20 basis points from 5.97% for the first quarter of 2024 to 5.77% for the first quarter of 2025.

    Linked quarter net interest margin expanded by 15 basis points to 3.40% for the first quarter of 2025, compared to 3.25% for the fourth quarter of 2024. Interest expense as a percentage of average earning assets decreased 19 basis points from 2.56% to 2.37% on a linked quarter basis. Average earning asset yields decreased by 4 basis points from 5.81% to 5.77% on a linked quarter basis. The easing of monetary policy by the Federal Reserve Bank, which began in September of 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing. Notably, the deposit mix shift from noninterest bearing deposits to interest bearing deposits experienced by the company during the previous monetary tightening cycle has stabilized with noninterest bearing deposits representing 22% of total deposits at March 31, 2025, March 31, 2024 and December 31, 2024.

    “We continue to see improvements in net interest margin due to the Federal Reserve Bank’s rate easing cycle. Our deposit costs have declined more than loan yields resulting in year over year improvements in net interest margin of 25 basis points and linked quarter improvements of 15 basis points,” stated O’Neill. “Net interest margin expansion combined with healthy loan growth has contributed to double digit growth in net interest income.”

    The loan beta for the current rate-easing cycle is 37% compared to the deposit beta of 55%. The cumulative loan beta, which measures the sensitivity of a bank’s average loan yield to changes in short-term interest rates, was 56% for the recent rate-tightening cycle. The cumulative deposit beta, which measures the sensitivity of a bank’s deposit cost to changes in short-term interest rates, was 54% for the recent rate-tightening cycle.

    Net interest income was $52.9 million for the first quarter of 2025, representing an increase of $5.5 million, or 12%, as compared to the first quarter of 2024. Net interest income for the first quarter of 2025 benefited from a decrease in deposit interest expense of $4.7 million and a decrease in borrowings interest expense of $1.3 million. Offsetting these effects on net interest income was a decrease in loan interest of $910,000. On a linked quarter basis, net interest income increased $1.2 million, or 2%, from $51.7 million for the fourth quarter of 2024. On a linked quarter basis, the increase to net interest income was driven by a reduction in interest expense of $4.1 million and offset by a reduction in interest income of $2.9 million.

    Asset Quality

    The company recorded a provision for credit losses of $6.8 million in the first quarter of 2025, an increase of $5.3 million, as compared to $1.5 million in the first quarter of 2024. On a linked quarter basis, the provision expense increased by $3.1 million, from $3.7 million for the fourth quarter of 2024. Provision expense during the first quarter of 2025 was primarily attributable to an increase in the specific allocation for the previously disclosed $43.3 million nonperforming credit to an industrial company in Northern Indiana.

    The allowance for credit loss reserve to total loans was 1.77% at March 31, 2025, up from 1.46% at March 31, 2024, and 1.68% at December 31, 2024. Net charge offs in the first quarter of 2025 were $327,000 compared to $312,000 in the first quarter of 2024 and $1.4 million during the linked fourth quarter of 2024. Annualized net charge offs to average loans were 0.03% for the first quarter of 2025, compared to 0.03% for the first quarter of 2024, and 0.11% for the linked fourth quarter of 2024.

    Nonperforming assets increased $42.6 million, or 280%, to $57.9 million as of March 31, 2025, versus $15.2 million as of March 31, 2024. On a linked quarter basis, nonperforming assets increased $1.0 million, or 2%, compared to $56.9 million as of December 31, 2024. The ratio of nonperforming assets to total assets at March 31, 2025 increased to 0.84% from 0.23% at March 31, 2024, and decreased from 0.85% at December 31, 2024. The increase in nonperforming assets was primarily driven by the aforementioned credit.

    Total individually analyzed and watch list loans increased by $32.3 million, or 18%, to $215.6 million as of March 31, 2025, versus $183.3 million as of March 31, 2024. On a linked quarter basis, total individually analyzed and watch list loans increased by $4.4 million, or 2%, from $211.1 million at December 31, 2024. The linked quarter increase in total individually analyzed and watch list loans was primarily driven by the addition of five commercial relationships to the watch list with aggregate balances of $11.5 million and offset by watch list removals of two relationships with aggregate balances of $8.0 million. Watch list loans as a percentage of total loans were 4.13% at March 31, 2025, an increase of 46 basis points compared to 3.67% at March 31, 2024, and unchanged from December 31, 2024.

    “Asset quality remains stable with watch list loans as a percentage of total loans at 4.13%,” commented Findlay. “It is premature to comment on the impact of the tariff activity on our borrowers’ businesses and we are actively talking with our clients to understand the impact of this trade policy activity. As part of our internal credit administration and loan review process, we initiated a detailed plan to identify and analyze specific industries and clients that may be more sensitive to the effects of tariffs. As part of this process, our credit team is aggregating and segmenting direct and indirect exposure that our commercial and industrial borrowers have with international trading partners.”

    Investment Portfolio Overview

    Total investment securities were $1.13 billion at March 31, 2025, reflecting a decrease of $12.0 million, or 1%, as compared to $1.14 billion at March 31, 2024. On a linked quarter basis, investment securities increased $9.9 million, or 1%, due primarily to security purchases of $22.2 million, offset by improvement in the fair market value of available-for-sale securities of $2.8 million, and cash flows from calls, paydowns and maturities of $14.7 million. Investment securities represented 17% of total assets on March 31, 2025, March 31, 2024 and December 31, 2024. The company anticipates receiving principal and interest cash flows of approximately $82.3 million during the remainder of 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth and reinvestment of investment securities cash flows. Tax equivalent adjusted effective duration for the investment portfolio was 5.9 years at March 31, 2025, compared to 6.6 years at March 31, 2024 and 6.0 years December 31, 2024.

    Noninterest Income

    The company’s noninterest income decreased $1.7 million, or 13%, to $10.9 million for the first quarter of 2025, compared to $12.6 million for the first quarter of 2024. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effect of the insurance recovery recorded during the first quarter of 2024, was $11.6 million for the first quarter of 2024, a decrease of $684,000, or 6%, compared to $10.9 million for the first quarter of 2025. Wealth advisory fees increased $412,000, or 17%, driven by growth in customers and assets under management. Deposit fees increased $83,000, or 3% driven primarily by growth in our treasury management services. Other income decreased $1.3 million, or 61%. Other income during the first quarter of 2024 benefited from a $1.0 million insurance recovery related to the wire fraud loss from 2023 and death benefits received from the company’s bank owned life insurance program. Bank owned life insurance income decreased $714,000, or 69%, primarily due to a reduction in the market performance of the company’s variable bank owned life insurance policies, which are tied to the equity markets.

    Noninterest income for the first quarter of 2025 decreased by $948,000, or 8%, on a linked quarter basis from $11.9 million during the fourth quarter of 2024. Wealth advisory fees increased by $168,000, or 6%. The linked quarter decrease in noninterest income was impacted by a decrease in bank owned life insurance income, which decreased $894,000, or 74%, due to market performance of the company’s variable bank owned life insurance policies.

    “The growth of our wealth advisory business continues to positively impact revenue growth with 17% improvement in fees on a year over year basis,” added Findlay, “We continue to focus on our fee-based businesses that contribute to noninterest income and revenue growth.”

    Noninterest Expense

    Noninterest expense increased $2.1 million, or 7%, to $32.8 million for the first quarter of 2025, compared to $30.7 million during the first quarter of 2024. Salaries and benefits expense increased by $1.1 million, or 6%, driven by performance-based incentive compensation expense of $1.3 million and salary expense of $524,000. These increases were offset by reduced deferred compensation expense of $687,000, which moves in tandem with the market performance of the company’s variable bank owned life insurance. Other expense increased by $400,000, or 18%, from increased customer reimbursements for counterfeit checks and account takeover wire fraud losses. Data processing fees and supplies expense increased $426,000, or 11%, from continued investment in customer-facing and operational technology solutions.

    On a linked quarter basis, noninterest expense increased by $2.1 million, or 7%, from $30.7 million during the fourth quarter of 2024. Salaries and employee benefits increased by $641,000, or 4%, due to merit-based increases for salaries, incentive pay, and annual health insurance benefits that are funded at the beginning of each year. Data processing fees and supplies expense increased $523,000, or 14%. Corporate and business development expense increased by $456,000, or 48%, which was primarily driven by an increase in advertising expense of $462,000 during the quarter from the company’s seasonal promotional campaigns. Other expense increased $228,000, or 9%.

    The company’s efficiency ratio was 51.4% for the first quarter of 2025, compared to 51.2% for the first quarter of 2024 and 48.2% for the linked fourth quarter of 2024.

    Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $6.9 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

    This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

    LAKELAND FINANCIAL CORPORATION
    FIRSTQUARTER2025FINANCIAL HIGHLIGHTS
     
      Three Months Ended
    (Unaudited – Dollars in thousands, except per share data) March 31,   December 31,   March 31,
    END OF PERIOD BALANCES   2025       2024       2024  
    Assets $ 6,851,178     $ 6,678,374     $ 6,566,861  
    Investments   1,132,854       1,122,994       1,144,816  
    Loans   5,223,221       5,117,948       4,997,559  
    Allowance for Credit Losses   92,433       85,960       73,180  
    Deposits   5,960,194       5,900,966       5,618,085  
    Brokered Deposits   125,409       41,560       185,767  
    Core Deposits (1)   5,834,785       5,859,406       5,432,318  
    Total Equity   694,509       683,911       647,009  
    Goodwill Net of Deferred Tax Assets   3,803       3,803       3,803  
    Tangible Common Equity (2)   690,706       680,108       643,206  
    Adjusted Tangible Common
    Equity (2)
      854,585       846,040       809,395  
    AVERAGE BALANCES          
    Total Assets $ 6,762,970     $ 6,795,596     $ 6,554,468  
    Earning Assets   6,430,804       6,470,920       6,216,929  
    Investments   1,136,404       1,134,011       1,158,503  
    Loans   5,185,918       5,086,614       4,971,020  
    Total Deposits   5,874,725       6,011,122       5,630,431  
    Interest Bearing Deposits   4,616,381       4,729,201       4,356,328  
    Interest Bearing Liabilities   4,716,465       4,729,206       4,532,137  
    Total Equity   696,053       693,744       645,007  
    INCOME STATEMENT DATA          
    Net Interest Income $ 52,875     $ 51,694     $ 47,416  
    Net Interest Income-Fully Tax Equivalent   53,983       52,804       48,683  
    Provision for Credit Losses   6,800       3,691       1,520  
    Noninterest Income   10,928       11,876       12,612  
    Noninterest Expense   32,763       30,653       30,705  
    Net Income   20,085       24,190       23,401  
    Pretax Pre-Provision Earnings (2)   31,040       32,917       29,323  
    PER SHARE DATA          
    Basic Net Income Per Common Share $ 0.78     $ 0.94     $ 0.91  
    Diluted Net Income Per Common Share   0.78       0.94       0.91  
    Cash Dividends Declared Per Common Share   0.50       0.48       0.48  
    Dividend Payout   64.10 %     51.06 %     52.75 %
    Book Value Per Common Share (equity per share issued) $ 26.99     $ 26.62     $ 25.20  
    Tangible Book Value Per Common Share (2)   26.85       26.47       25.05  
    Market Value – High $ 71.77     $ 78.61     $ 73.22  
    Market Value – Low   58.24       61.10       60.56  
    Basic Weighted Average Common Shares Outstanding   25,714,818       25,686,276       25,657,063  
    Diluted Weighted Average Common Shares Outstanding   25,802,865       25,792,460       25,747,643  
               
               
      Three Months Ended
    (Unaudited – Dollars in thousands, except per share data) March 31,   December 31,   March 31,
    KEY RATIOS   2025       2024       2024  
    Return on Average Assets   1.20 %     1.42 %     1.44 %
    Return on Average Total Equity   11.70       13.87       14.59  
    Average Equity to Average Assets   10.29       10.21       9.84  
    Net Interest Margin   3.40       3.25       3.15  
    Efficiency (Noninterest Expense/Net Interest Income
    plus Noninterest Income)
      51.35       48.22       51.15  
    Loans to Deposits   87.64       86.73       88.95  
    Investment Securities to Total Assets   16.54       16.82       17.43  
    Tier 1 Leverage (3)   12.30       12.15       12.01  
    Tier 1 Risk-Based Capital (3)   14.51       14.64       14.21  
    Common Equity Tier 1 (CET1) (3)   14.51       14.64       14.21  
    Total Capital (3)   15.77       15.90       15.46  
    Tangible Capital (2)   10.09       10.19       9.80  
    Adjusted Tangible Capital (2)   12.19       12.37       12.03  
    ASSET QUALITY          
    Loans Past Due 30 – 89 Days $ 4,288     $ 4,273     $ 3,177  
    Loans Past Due 90 Days or More   7       28       7  
    Nonaccrual Loans   57,392       56,431       14,762  
    Nonperforming Loans   57,399       56,459       14,769  
    Other Real Estate Owned   284       284       384  
    Other Nonperforming Assets   193       143       78  
    Total Nonperforming Assets   57,876       56,886       15,231  
    Individually Analyzed Loans   81,346       78,647       15,181  
    Non-Individually Analyzed Watch List Loans   134,218       132,499       168,133  
    Total Individually Analyzed and Watch List Loans   215,564       211,146       183,314  
    Gross Charge Offs   508       1,657       504  
    Recoveries   181       299       192  
    Net Charge Offs/(Recoveries)   327       1,358       312  
    Net Charge Offs/(Recoveries) to Average Loans   0.03 %     0.11 %     0.03 %
    Credit Loss Reserve to Loans   1.77       1.68       1.46  
    Credit Loss Reserve to Nonperforming Loans   161.04       152.25       495.51  
    Nonperforming Loans to Loans   1.10       1.10       0.30  
    Nonperforming Assets to Assets   0.84       0.85       0.23  
    Total Individually Analyzed and Watch List Loans to Total Loans   4.13 %     4.13 %     3.67 %
    OTHER DATA          
    Full Time Equivalent Employees   647       643       628  
    Offices   54       54       53  

    __________________________________________________

    (1)   Core deposits equals deposits less brokered deposits.
    (2)   Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
    (3)   Capital ratios for March 31, 2025 are preliminary until the Call Report is filed.
         
    CONSOLIDATED BALANCE SHEETS (in thousands, except share data)      
    March 31,
    2025
      December 31,
    2024
    (Unaudited)  
    ASSETS      
    Cash and due from banks $ 89,325     $ 71,733  
    Short-term investments   145,899       96,472  
    Total cash and cash equivalents   235,224       168,205  
         
    Securities available-for-sale, at fair value   1,000,875       991,426  
    Securities held-to-maturity, at amortized cost (fair value of $109,481 and $113,107, respectively)   131,979       131,568  
    Real estate mortgage loans held-for-sale   1,295       1,700  
         
    Loans, net of allowance for credit losses of $92,433 and $85,960   5,130,788       5,031,988  
         
    Land, premises and equipment, net   60,797       60,489  
    Bank owned life insurance   113,826       113,320  
    Federal Reserve and Federal Home Loan Bank stock   21,420       21,420  
    Accrued interest receivable   28,818       28,446  
    Goodwill   4,970       4,970  
    Other assets   121,186       124,842  
    Total assets $ 6,851,178     $ 6,678,374  
         
         
    LIABILITIES      
    Noninterest bearing deposits $ 1,296,907     $ 1,297,456  
    Interest bearing deposits   4,663,287       4,603,510  
    Total deposits   5,960,194       5,900,966  
           
    Borrowings – Federal Home Loan Bank advances   108,200       0  
    Accrued interest payable   14,699       15,117  
    Other liabilities   73,576       78,380  
    Total liabilities   6,156,669       5,994,463  
         
    STOCKHOLDERS’ EQUITY      
    Common stock: 90,000,000 shares authorized, no par value      
    26,016,494 shares issued and 25,556,904 outstanding as of March 31, 2025      
    25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024   130,243       129,664  
    Retained earnings   743,650       736,412  
    Accumulated other comprehensive income (loss)   (163,879 )     (166,500 )
    Treasury stock, at cost (459,590 shares and 469,239 shares as of March 31, 2025 and December 31, 2024, respectively)   (15,594 )     (15,754 )
    Total stockholders’ equity   694,420       683,822  
    Noncontrolling interest   89       89  
    Total equity   694,509       683,911  
    Total liabilities and equity $ 6,851,178     $ 6,678,374  
     
    CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)
    Three Months Ended March 31,
      2025       2024  
    NET INTEREST INCOME      
    Interest and fees on loans      
    Taxable $ 81,740     $ 82,042  
    Tax exempt   292       900  
    Interest and dividends on securities      
    Taxable   3,389       3,039  
    Tax exempt   3,910       3,947  
    Other interest income   1,124       1,106  
    Total interest income   90,455       91,034  
     
    Interest on deposits   36,458       41,164  
    Interest on short-term borrowings   1,122       2,454  
    Total interest expense   37,580       43,618  
     
    NET INTEREST INCOME   52,875       47,416  
     
    Provision for credit losses   6,800       1,520  
     
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   46,075       45,896  
     
    NONINTEREST INCOME      
    Wealth advisory fees   2,867       2,455  
    Investment brokerage fees   452       522  
    Service charges on deposit accounts   2,774       2,691  
    Loan and service fees   2,884       2,852  
    Merchant and interchange fee income   822       863  
    Bank owned life insurance income   322       1,036  
    Mortgage banking income (loss)   (51 )     52  
    Net securities gains (losses)   0       (46 )
    Other income   858       2,187  
    Total noninterest income   10,928       12,612  
     
    NONINTEREST EXPENSE      
    Salaries and employee benefits   17,902       16,833  
    Net occupancy expense   1,980       1,740  
    Equipment costs   1,382       1,412  
    Data processing fees and supplies   4,265       3,839  
    Corporate and business development   1,406       1,381  
    FDIC insurance and other regulatory fees   800       789  
    Professional fees   2,380       2,463  
    Other expense   2,648       2,248  
    Total noninterest expense   32,763       30,705  
     
    INCOME BEFORE INCOME TAX EXPENSE   24,240       27,803  
    Income tax expense   4,155       4,402  
    NET INCOME $ 20,085     $ 23,401  
     
    BASIC WEIGHTED AVERAGE COMMON SHARES   25,714,818       25,657,063  
     
    BASIC EARNINGS PER COMMON SHARE $ 0.78     $ 0.91  
         
    DILUTED WEIGHTED AVERAGE COMMON SHARES   25,802,865       25,747,643  
         
    DILUTED EARNINGS PER COMMON SHARE $ 0.78     $ 0.91  
     
    LAKELAND FINANCIAL CORPORATION
    LOAN DETAIL
    (unaudited, in thousands)
     
      March 31,
    2025
      December 31,
    2024
      March 31,
    2024
    Commercial and industrial loans:                      
    Working capital lines of credit loans $ 716,522     13.7 %   $ 649,609     12.7 %   $ 646,459     12.9 %
    Non-working capital loans   807,048     15.5       801,256     15.6       830,817     16.6  
    Total commercial and industrial loans   1,523,570     29.2       1,450,865     28.3       1,477,276     29.5  
                         
    Commercial real estate and multi-family residential loans:                      
    Construction and land development loans   623,905     12.0       567,781     11.1       659,712     13.2  
    Owner occupied loans   804,933     15.4       807,090     15.8       833,410     16.7  
    Nonowner occupied loans   852,033     16.3       872,671     17.0       744,346     14.9  
    Multifamily loans   339,946     6.5       344,978     6.7       239,974     4.8  
    Total commercial real estate and multi-family residential loans   2,620,817     50.2       2,592,520     50.6       2,477,442     49.6  
                         
    Agri-business and agricultural loans:                      
    Loans secured by farmland   156,112     3.0       156,609     3.1       167,271     3.3  
    Loans for agricultural production   227,659     4.3       230,787     4.5       200,581     4.0  
    Total agri-business and agricultural loans   383,771     7.3       387,396     7.6       367,852     7.3  
                         
    Other commercial loans   94,927     1.8       95,584     1.9       120,302     2.4  
    Total commercial loans   4,623,085     88.5       4,526,365     88.4       4,442,872     88.8  
                         
    Consumer 1-4 family mortgage loans:                      
    Closed end first mortgage loans   265,855     5.1       259,286     5.1       260,633     5.2  
    Open end and junior lien loans   217,981     4.2       214,125     4.2       188,927     3.8  
    Residential construction and land development loans   16,359     0.3       16,818     0.3       10,956     0.2  
    Total consumer 1-4 family mortgage loans   500,195     9.6       490,229     9.6       460,516     9.2  
                       
    Other consumer loans   102,254     1.9       104,041     2.0       97,369     2.0  
    Total consumer loans   602,449     11.5       594,270     11.6       557,885     11.2  
    Subtotal   5,225,534     100.0 %     5,120,635     100.0 %     5,000,757     100.0 %
    Less:  Allowance for credit losses   (92,433 )         (85,960 )       (73,180 )  
    Net deferred loan fees   (2,313 )         (2,687 )       (3,198 )  
    Loans, net $ 5,130,788         $ 5,031,988       $ 4,924,379    
     
    LAKELAND FINANCIAL CORPORATION
    DEPOSITS AND BORROWINGS
    (unaudited, in thousands)
     
      March 31,
    2025
      December 31,
    2024
      March 31,
    2024
    Noninterest bearing demand deposits $ 1,296,907   $ 1,297,456   $ 1,254,200
    Savings and transaction accounts:          
    Savings deposits   293,768     276,179     296,671
    Interest bearing demand deposits   3,554,310     3,471,455     3,041,025
    Time deposits:          
    Deposits of $100,000 or more   602,577     642,776     805,832
    Other time deposits   212,632     213,100     220,357
    Total deposits $ 5,960,194   $ 5,900,966   $ 5,618,085
    FHLB advances and other borrowings   108,200     0     200,000
    Total funding sources $ 6,068,394   $ 5,900,966   $ 5,818,085
     

     

    LAKELAND FINANCIAL CORPORATION
    AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
    (UNAUDITED)
     
        Three Months Ended March 31, 2025   Three Months Ended December 31, 2024   Three Months Ended March 31, 2024
    (fully tax equivalent basis, dollars in thousands)   Average Balance   Interest Income   Yield (1)/
    Rate
      Average Balance   Interest Income   Yield (1)/
    Rate
      Average Balance   Interest Income   Yield (1)/
    Rate
    Earning Assets                                    
    Loans:                                    
    Taxable (2)(3)   $ 5,160,031     $ 81,740   6.42 %   $ 5,060,397     $ 83,253   6.54 %   $ 4,916,943     $ 82,042   6.71 %
    Tax exempt (1)     25,887       361   5.66       26,217       364   5.52       54,077       1,118   8.31  
    Investments: (1)                                    
    Securities     1,136,404       8,338   2.98       1,134,011       7,953   2.79       1,158,503       8,035   2.79  
    Short-term investments     2,964       28   3.83       2,765       29   4.17       2,710       33   4.90  
    Interest bearing deposits     105,518       1,096   4.21       247,530       2,881   4.63       84,696       1,073   5.10  
    Total earning assets   $ 6,430,804     $ 91,563   5.77 %   $ 6,470,920     $ 94,480   5.81 %   $ 6,216,929     $ 92,301   5.97 %
    Less:  Allowance for credit losses     (87,477 )             (84,687 )             (72,433 )        
    Nonearning Assets                                    
    Cash and due from banks     71,004               67,994               68,584          
    Premises and equipment     60,523               60,325               57,883          
    Other nonearning assets     288,116               281,044               283,505          
    Total assets   $ 6,762,970             $ 6,795,596             $ 6,554,468          
                                         
    Interest Bearing Liabilities                                    
    Savings deposits   $ 283,888     $ 42   0.06 %   $ 274,960     $ 43   0.06 %   $ 295,650     $ 49   0.07 %
    Interest bearing checking accounts     3,486,447       28,075   3.27       3,505,470       31,562   3.58       3,046,958       30,365   4.01  
    Time deposits:                                    
    In denominations under $100,000     212,934       1,832   3.49       214,429       1,921   3.56       224,139       1,918   3.44  
    In denominations over $100,000     633,112       6,509   4.17       734,342       8,150   4.42       789,581       8,832   4.50  
    Miscellaneous short-term borrowings     99,830       1,122   4.56       5       0   5.30       175,809       2,454   5.61  
    Long-term borrowings     254       0   0.00       0       0   0.00       0       0   0.00  
    Total interest bearing liabilities   $ 4,716,465     $ 37,580   3.23 %   $ 4,729,206     $ 41,676   3.51 %   $ 4,532,137     $ 43,618   3.87 %
    Noninterest Bearing Liabilities                                    
    Demand deposits     1,258,344               1,281,921               1,274,103          
    Other liabilities     92,108               90,725               103,221          
    Stockholders’ Equity     696,053               693,744               645,007          
    Total liabilities and stockholders’ equity   $ 6,762,970             $ 6,795,596             $ 6,554,468          
    Interest Margin Recap                                    
    Interest income/average earning assets         91,563   5.77 %         94,480   5.81 %         92,301   5.97 %
    Interest expense/average earning assets         37,580   2.37           41,676   2.56           43,618   2.82  
    Net interest income and margin       $ 53,983   3.40 %       $ 52,804   3.25 %       $ 48,683   3.15 %
    (1)   Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax-exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.11 million and $1.27 million in the three-month periods ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
    (2)   Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended March 31, 2025, December 31, 2024, and March 31, 2024, are included as taxable loan interest income.
    (3)   Nonaccrual loans are included in the average balance of taxable loans.
         

    Reconciliation of Non-GAAP Financial Measures

    Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended
      Mar. 31, 2025   Dec. 31, 2024   Mar. 31, 2024
    Total Equity $ 694,509     $ 683,911     $ 647,009  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167  
    Tangible Common Equity   690,706       680,108       643,206  
    Market Value Adjustment in AOCI   163,879       165,932       166,189  
    Adjusted Tangible Common Equity   854,585       846,040       809,395  
               
    Assets $ 6,851,178     $ 6,678,374     $ 6,566,861  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167  
    Tangible Assets   6,847,375       6,674,571       6,563,058  
    Market Value Adjustment in AOCI   163,879       165,932       166,189  
    Adjusted Tangible Assets   7,011,254       6,840,503       6,729,247  
               
    Ending Common Shares Issued   25,727,393       25,689,730       25,677,399  
               
    Tangible Book Value Per Common Share $ 26.85     $ 26.47     $ 25.05  
               
    Tangible Common Equity/Tangible Assets   10.09 %     10.19 %     9.80 %
    Adjusted Tangible Common Equity/Adjusted Tangible Assets   12.19 %     12.37 %     12.03 %
               
    Net Interest Income $ 52,875     $ 51,694     $ 47,416  
    Plus:  Noninterest Income   10,928       11,876       12,612  
    Minus:  Noninterest Expense   (32,763 )     (30,653 )     (30,705 )
               
    Pretax Pre-Provision Earnings $ 31,040     $ 32,917     $ 29,323  
     

    Adjusted core noninterest income, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of insurance recoveries related to the 2023 wire fraud loss for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended
      Mar. 31, 2025   Dec. 31, 2024   Mar. 31, 2024
    Noninterest Income $ 10,928     $ 11,876     $ 12,612  
    Less: Insurance Recovery   0       0       (1,000 )
    Adjusted Core Noninterest Income $ 10,928     $ 11,876     $ 11,612  
               
    Earnings Before Income Taxes $ 24,240     $ 29,226     $ 27,803  
    Adjusted Core Impact:          
    Noninterest Income   0       0       (1,000 )
    Total Adjusted Core Impact   0       0       (1,000 )
    Adjusted Earnings Before Income Taxes   24,240       29,226       26,803  
    Tax Effect   (4,155 )     (5,036 )     (4,153 )
    Core Operational Profitability (1) $ 20,085     $ 24,190     $ 22,650  
               
    Diluted Earnings Per Common Share $ 0.78     $ 0.94     $ 0.91  
    Impact of Adjusted Core Items   0.00       0.00       (0.03 )
    Core Operational Diluted Earnings Per Common Share $ 0.78     $ 0.94     $ 0.88  
               
    Adjusted Core Efficiency Ratio   51.35 %     48.22 %     52.02 %
    (1)   Core operational profitability was $751,000 lower than reported net income for the three months ended March 31, 2024.

    Contact
    Lisa M. O’Neill
    Executive Vice President and Chief Financial Officer
    (574) 267-9125
    lisa.oneill@lakecitybank.com

    The MIL Network

  • MIL-OSI United Kingdom: Leicester’s revamped Jewry Wall Museum to open in July

    Source: City of Leicester

    LEICESTER’S exciting new Roman visitor attraction is to open its doors to the public on Saturday 26 July.

    In just three months’ time, people will be able to see how the remains of the Roman bath house at Jewry Wall have been incorporated into a contemporary museum, with more than 100 Roman artefacts ­– all discovered in Leicester and Leicestershire – and the latest digital technology helping to bring Leicester’s Roman past to life.

    The Grade II listed building that housed the old museum and the former Vaughan College has been sensitively refurbished, with huge glass walls connecting the ancient Jewry Wall and the outdoor space with the modern exhibition space inside, and with a new pedestrian bridge from St Nicholas Circle making the building fully accessible for the first time.

    Inside the museum, an immersive film will welcome visitors with a journey through the excavated areas of Roman Leicester, while interactive displays, games and projections will allow visitors to explore the 2nd century site, transporting them back in time to experience everyday life in Leicester as it was around 2,000 years ago.

    Characterisations of the buildings and the people of Roman Leicester, created by artist Scott Tetlow, will help to animate the story, giving visitors an insight into the public and private lives of the residents of Ratae Corieltauvorum ­ – the Roman name for the city of Leicester.

    Managed by the same team responsible for the award-winning King Richard III Visitor Centre, the museum will also boast an attractive café – overlooking the remains of the Roman bath house – which will be open to the public every day, without the need to buy an admission ticket.

    “It’s fair to say that this project has faced more than its fair share of challenges, with a global pandemic and not one but two key contractors going out of business during the construction phase, so I’m delighted that we can now – finally – look forward to the opening of this brilliant new attraction for Leicester,” said City Mayor Peter Soulsby.

    “Everything that will be on display in the new museum has been discovered right here in Leicester and Leicestershire, from the Blackfriars Mosaic that’s been described as one of the finest mosaics found in Roman Britain, to a beautifully crafted bronze key handle that depicts a man grappling with a lion, uncovered by archaeologists right next to Jewry Wall on Great Central Street in 2016.

    “The opening of the new museum on Saturday 26 July means that Leicester can finally shout about its Roman roots, offering visitors another must-see attraction in our historic city and making local people even more proud of Leicester’s extraordinary 2,000-year history.”

    Admission tickets for Jewry Wall: A Real Roman Experience are now on sale at jewrywall.com, with the first visitors being welcomed at 10am on Saturday 26 July.

    Standard ticket prices are as follows:

    Adults (16+): £12.50

    Concessions: £11.50

    Children (5-15): £6.25

    Family tickets: £32 (2 x adults + 2 x children)

    Official carers and children under 5: free of charge

    A joint ticket is also available for those who wish to visit both the Jewry Wall Museum and the King Richard III Visitor Centre, with adult tickets for both attractions costing £23 and a family ticket priced at £62.

    All tickets provide visitors with a Roman Explorer Pass, which gives access to the museum for a whole year. Subject to conditions, people can book as many visits as they like in a 12-month period, enjoying special events and re-enactment activities without having to pay again.

    More information about Jewry Wall: A Real Roman Experience is available at jewrywall.com

    Anyone who is fascinated by Leicester’s Roman history doesn’t need to wait until July to find out more about the city’s past. Tomorrow (Saturday 26 April) and Sunday (27 April), Leicester’s historic centre will be transformed for the annual Old Town Festival, which this year has a Roman theme.

    From 10am tomorrow (Saturday), visitors will be able to help recreate the entrance to Leicester’s long-gone Roman Forum in Jubilee Square, thanks to the genius of visual artist Olivier Grossetête, step back in time to a Roman living history camp, learn to march like a legionnaire, watch Roman soldiers parade through the streets of Ratae, and return on Sunday at 3pm to help demolish the spectacular cardboard Roman Forum.

    More information about Leicester’s Old Town Festival is available at visitleicester.info

    Picture caption: City Mayor Peter Soulsby studies the extraordinary Stibbe Mosaic, discovered beneath the former Stibbe knitwear factory by archaeologists from the University of Leicester in 2016/17. The mosaic is one of more than 100 stunning Roman artefacts, all discovered in Leicester and Leicestershire, that visitors will be able to see at the new Jewry Wall Museum.

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: New sculpture provides place to reflect on COVID-19 pandemic

    Source: City of Derby

    A new sculpture has been installed at Nottingham Road Cemetery, offering a place to reflect on the COVID-19 pandemic.

    Artist Richard Janes was commissioned to design the sculpture that will serve as a place for people to come and reflect on the impacts of the pandemic in their family and community.

    Describing the sculpture, Richard said:

    The sculpture is a reflective exploration of the shared experience of the Coronavirus Pandemic and lockdown, as well as a quiet space to remember loved ones. The wing design is a modern inspiration reflecting the more traditional Victorian angels found in the Cemetery and the gothic arched gravestones. The birds, bubbles, hands and butterflies were all strong repeating themes in the design sessions, as was the use of colour – as represented in the stained-glass sections.

    It was important that the sculpture be a space for reflection and so part of the sculpture forms a seat. The designs of the seat are based on countries, as the pandemic was truly global, and people represented this in their ideas. The central section has a bronze disc which has many smaller relief sculptures which were created during the design sessions.

    Young people from the Voices In Action Youth Council, Chaddesden Park Primary School, and St Andrew’s Academy, as well as Friends of Nottingham Road Cemetery, were involved in the design process.

    At a workshop, members of the ViA Youth Council made clay models to represent the positives that they saw during the pandemic. These models have now been cast in bronze and included in the sculpture.

    The new sculpture will sit alongside other improvements in the cemetery, including tree management and bulb planting. These improvements are funded by the Our City, Our River programme (OCOR), Derby’s flood resilience project, as part of its positive legacy for the city.

    Councillor Carmel Swan, Cabinet Member for Climate Change, Transport and Sustainability, said:

    People might think OCOR is just about flood defences, but it’s much more than that. We’re building a wider legacy for the scheme that delivers real community benefits around the city, not just along the river.

    I want to thank everyone who has been involved in shaping the designs. During the pandemic we all pulled together, and the community effort behind this sculpture reflects that attitude.

    Councillor Ndukwe Onuoha, Cabinet Member for Streetpride, Public Safety, and Leisure, said: 

    Our cemeteries are special places for the people of Derby. I’m incredibly proud of all the work that has gone into this new sculpture from council officers, the artist, and community groups. With the new sculpture in place, people will now have somewhere they can go to reflect on what was a very challenging time.

    OCOR is Derby’s flood alleviation project led by Derby City Council in partnership with the Environment Agency. The project is delivering enhanced flood protection and unlocking the potential for regeneration around the city centre through new flood walls, flood gates and a state-of-the-art pumping station on the Mill Fleam. The next phase is due to begin this year at Derby Riverside.

    Beyond infrastructure improvements, OCOR has also carried out an extensive programme of biodiversity enhancements including tree planting and installing bird and bat boxes.

    MIL OSI United Kingdom

  • MIL-OSI Banking: Press Briefing Transcript: Middle East and Central Asia Department, Spring Meetings 2025

    Source: International Monetary Fund

    April 24, 2025

    Speaker: Mr.Jihad Azour, Director of Middle East and Central Asia Department, IMF

    Moderator: Ms. Angham Al Shami, Communications Officer, IMF

    MS. AL SHAMI: Good morning. Thank you for joining us in this press briefing on the Regional Economic Outlook for the Middle East and Central Asia. My name is Angham Al Shami, from the Communications Department here at the IMF. 

    If you’re joining us online, we do have Arabic and French interpretations that you can access on the IMF Regional Economic Outlook webpage and the IMF Press Center as well.  And for those of you in the room, you also have equipment to access that. 

    Today I’m joined by Jihad Azour, the Director of the Middle East and Central Asia Department, who will give us an overview of the outlook of the region, and then we will open the floor for your questions. With that, over to you, Jihad.

    MR. AZOUR: Thank you very much, Angham. Good morning, everyone, and welcome to the IMF 2025 Spring Meetings. Before answering your questions, I will briefly outline the economic outlook for the Middle East and North Africa as well as the Caucasus and Central Asia.  Let me first start with a few words on the recent developments.

    The global economy stands at a delicate crossroads.  The global recovery of recent years faces new risks as governments reorder their policy priorities.  The recent escalation in trade tensions has already damaged global growth prospects while triggering intense financial volatility.  More broadly, the extraordinary increase in global uncertainty associated with trade policy and increased geopolitical fragmentation will continue to erode confidence for quite some time and represents a serious downside risk to global growth.

    For MENA and CCA economies, these developments are adding to existing regional source of uncertainty, including ongoing conflicts, pockets of political instability and climate vulnerability.  We continue to assess the impact of recently announced U.S. tariffs on MENA and CCA economies.  While the direct effects are expected to be modest, giving limited trade exposure and exemptions for energy products, the indirect effects could be more pronounced.  Slower growth will weaken external demand and remittances, while tighter financial conditions may challenge countries with elevated public debts.  Oil exporting economies could also see fiscal and external positions deteriorate due to the lower oil prices.  Some countries may benefit from trade diversion, but such gains could be short lived in a broader environment of trade contraction. 

    Let me now turn to the Middle East and North Africa.  Last year was particularly challenging for the region.  Conflict caused severe human and economic costs.  Regional growth in 2024 reached 1.8 percent, a downgrade revision of 0.2 percentage point from the October World Economic Outlook forecast.  Conflicts weigh on growth in some oil importing countries and extended OPEC+ voluntary production cuts continue to dampen activity in oil exporting economies.  For GCC countries, strong non-oil growth and diversification efforts were largely offset by oil production cuts. 

    Despite these challenges and high uncertainty, growth is projected to pick up in 2025 and 2026, assuming oil output rebounds, conflict related impacts stabilize, progress is made on structural reform and implementation.  However, expectations have been revised down compared to the October 2024 Regional Economic Outlook, reflecting weaker global growth and more modest effect of these drivers.  We now project growth at 2.6 percent in 2025 and 3.4 percent in 2026, a downward revision of 1.3 and 1 percentage points, respectively.  Inflation is projected to continue declining across MENA economies, remaining elevated only in few cases. 

    Let me now turn to the outlook for the Caucuses and Central Asia.  In contrast, economic activity in the CCA exceeded expectations in 2024, growing by 5.4 percent, driven by spillover effects from the war in Ukraine, which boosted domestic demand.  However, as these temporary effects normalize over the next few years, growth is expected to moderate due to weaker external demand, plateauing growth of hydrocarbon production, and reduced fiscal stimulus.  Despite the moderation in overall growth, inflation is expected to increase somewhat across the region and remain elevated in a few cases, reflecting still strong domestic demand. 

    Let me now turn to the risks to the outlook.  These projections are subject to extraordinary uncertainty and the risks to the baseline forecast remain tilted to the downside.  Four key risks stand out.  First, trade tension as a further escalation could dampen global demand, delay in oil production recovery, and tighten financial conditions.  Our analysis shows that persistence spikes in uncertainty triggered by global shocks are associated with large output losses both in MENA and CCA.  The second risk is geopolitical conflict.  The third one is climate shocks.  And the last one is the reduction in official development assistance.  This could further exacerbate food insecurity and humanitarian conditions in low-income and conflict-affected economies.  However, upside risks also exist.  The swift resolution of conflict and accelerated implementation of structural reforms could substantially improve regional growth prospects.  The implications of a potential peace agreement between Russia and Ukraine for the CCA region also remain uncertain. 

    Now the question is what are the policies that we recommend for countries and how they should prioritize them.  In the face of extraordinary uncertainty, MENA and CCA economies should respond along two key dimensions, manage short term instability, and use the opportunity to advance structural reforms for long-term growth.  The first priority is adapt to the new environment.  Countries must take steps to shield their economies from the impact of worst-case scenarios and prioritize safeguarding macroeconomic and financial stability.  The appropriate policy response will vary depending on each country’s initial conditions and vulnerability to risk. 

    Turning to more the long-term, countries should transform their economies.  Recent developments underscore the urgent need to accelerate the long-discussed structural reforms agenda across the region.  To reduce vulnerabilities to shocks and seize opportunities arising from the evolving global trade and financial landscape, it is essential to enhance governance, invest in human capital, advance digitalization, and foster a dynamic private sector.  Establishing strategic trade and investment corridors with other regions such as Sub-Saharan Africa and Asia, as well as within the region, including between GCC and Central Asia or GCC and North Africa, can help mitigate exposure to external uncertainty, enable greater risk sharing, and drive sustainable economic development. 

    We will delve into these policy priorities at the launch of our Regional Economic Outlook in Dubai next week and in Samarkand, in Uzbekistan, where on May 3 we are organizing jointly with the Uzbek government a GCC-CCA Economic Conference where Ministers of Finance and Governors of Central Banks from both regions, as well as representatives of IFIs and private sectors, will discuss deepening economic ties between these two regions.  We also invite you to join us tomorrow at 2:30 p.m. at the Atrium for a public panel discussion on the economic consequences of the high uncertainty in the MENA and CCA regions. 

    Before I open the floor to questions, I want to underscore the IMF’s deep commitment to supporting countries throughout the region with policy advice, technical assistance, and, in many cases, financial support.  Since early 2020, we have approved almost $50 billion in financing to countries across the MENA region, Pakistan, and the CCA, of which 14.8 have been approved since early 2024. 

    In closing, I want to highlight our engagement to post-conflict economies.  Strengthening economic fundamentals and rebuilding institutions will be essential to successful recovery.  The IMF, in coordination with the World Bank and regional partners, has established an informal coordination group to support recovery in conflict-affected states in the Middle East.  Our focus will be on capacity building, policy guidance, and financial assistance.  We are also working closely with authorities to help stabilize their economies, restore confidence, and lay foundations for sustainable growth. 

    Again, thank you very much for joining us this morning, and now I would like to welcome your questions.               

    MS. AL SHAMI: Thank you very much, Jihad, and now we will take your questions. And let’s start with the gentleman here in the first row, please.

    QUESTIONER: Thank you, Angham and Jihad.  I’m Amir Goumaa from Asharq Bloomberg.  IMF raised the gross forecasting for Egypt dispIte the regional downgrade.  Why is that?  And how can the MENA region turn the country trade disputes into opportunities? 

    MR. AZOUR: Excuse me?

    QUESTIONER: How can the MENA region turn the current trade disputes and tariffs into opportunities?  Like how can they make the best use of it? 

    MR. AZOUR: Thank you very much for your question.

    MS. AL SHAMI: Should we take more questions on Egypt? Perhaps should we take more questions on Egypt. We’ll start with this gentleman and then the gentleman in the back.  This one first. 

    QUESTIONER: Hello everyone.  My name is Ahmad Yaqub.  I’m the managing editor of Al Youm Al-Sabah Egyptian Newspaper.  I have two questions about Egypt.  The first one is about the expected exchange rate of the Egyptian pound against the U.S. dollar by the end of 2026, the next year, and the expected inflation rate and the economic growth rate of Egypt.  The second question is the next trench of the program, current program with the Egyptian authorities.  What is the timing of the next trench and the total amount of it?  Thank you so much. 

    MS. AL SHAMI: And then the gentleman here.

    QUESTIONER: Ramy Gabr from Al-Qahera News.  The global economic outlook carries good news.  Maybe for Egypt in terms of the economic growth in 2025.  How do you see that and what’s the facts and numbers led to this outlook?  Thank you. 

    MS. AL SHAMI: Over to you.

    MR. AZOUR: Thank you very much. Yes, please.

    QUESTIONER: I’m Lauren Holtmeier from S&P Global.  I wanted to ask about the fiscal break-even prices for oil production, specifically for the countries with high fiscal break-even prices like Saudi Arabia and Iraq.  And how will the lowered expectations for oil prices over the next couple of years affect their ability and their economic outlook?  And I recognize that the answer for those two countries might be very different. 

    MR. AZOUR: Thank you very much. I had three sets of questions. One on trade and the impact of the recent trade developments on the region and how those could be turned into an opportunity.  The second set of questions were on Egypt, and the third one was on the GCC and the oil market.  Let me start with the first one. 

    Countries of the region have limited trade dependence on the U.S., and therefore the recent trade and tariff decisions will have limited direct impact on those economies.  Yet it’s important also to highlight that there would be indirect impact.  And also those indirect impact may take different channels.  One impact is the impact that this could have on financial stability and capital flows.  We saw widening of spreads over the last few years, which is an issue that could affect the capacity of emerging economies and middle-income countries who have high levels of debt.  The second potential impact is impact on oil market.  We saw some softening in the oil price, as well as the forwards of oil price are showing a certain extension of those softening over the year.  And the third type of effect is the second-round impact due to trade diversion. 

    I will maybe go into more details about what are the policies that we recommend for countries to address those challenges.  Few countries have more exposure to the U.S. trade like Pakistan or Jordan, and those are specific cases.  I can address those.  Opportunities, of course, in any change there are opportunities, and over the last few years we saw successive shocks and transformation on the geopolitical front and the geoeconomic front, and those have affected the region.  The region stands at the crossroads between East and West, and therefore trade routes, connectivity, as well as also opportunities go through this region.  This would require, as I mentioned in my opening remarks, for countries in the region to seek new opportunities in terms of strengthening their economic relationships and trade ties with regions close to them, as well as also within countries in the region, which will call for new way of increasing connectivity and cooperation in the region. 

    The second set of questions is on Egypt.  Over the last year, growth in Egypt has improved, and we expect growth for the fiscal year 2025 to reach 3.8 percent.  For comparison, in 2024 it was 2.4 percent, and we expect that the growth will keep improving in 2026 and reach 4.3 percent.  Also, inflation went down from 33 percent on average for fiscal year 2024 to 19.7 percent in 2025, and we expect it to reach 12 percent in 2026, despite the various shocks.  Those positive developments reflect the implementation of the reform program that was supported by the IMF and was augmented back in March last year in order also to help Egypt address some of the external shocks, in particular the decline in revenues from the Suez Canal. 

    As you remember, the program is based on four pillars.  One, macroeconomic stability by addressing inflation that constitutes the main issue for economic stability through tightening the monetary policy.  The second is to address the debt issue by improving the primary surplus and also through an active debt management strategy and strengthening debt management organization to reduce gradually the debt and the weight of the debt through the debt service on the economy.  The third important pillar is to preserve the economy from external shocks, and this is the role of the flexibility in the exchange rate.  Flexibility in the exchange rate in a time of high level of uncertainty plays an important way to protect the Egyptian economy from external shocks, and its flexibility has proven to be beneficial to the stability of the Egyptian economy.  The fourth pillar is growing the economy and give a bigger weight to the private sector, and we encourage the authorities to strengthen and accelerate the reinvestment strategy that would allow more investment to come to the Egyptian economy, would give more space to the private sector, and will help the Egyptian economy and the Egyptian people get better opportunities in a time where those international changes would require an acceleration of economic transformation.  The review has been completed in March, and as you know, we had also another facility that was provided to Egypt to help Egypt deal with climate issues, and our engagement with the authorities remain very active.  Shall I move to GCC? 

    MS. AL SHAMI: Yes.

    MR. AZOUR: The next trench will be with the next review. On the GCC, well, of course the direct impact of the trade shock on the region has been limited except that with the prospect of the decline in oil price, it comes at a time where we see a resumption of increase of oil production with the implementation of what has been agreed, though at a slower pace, of the December decision of the OPEC+ agreement.

    As you know, countries of the GCC have different fundamentals and different level of buffers, and therefore there is no one break-even point for all countries.  Our estimates are showing, though, that a decline in oil price of $10 would weaken the fiscal situation by somewhat between 2.3 to 2.7 percent of GDP, and it also, it has similar impact on the external account between 2.5 to 2.7 percent of GDP. 

    I would like to highlight two additional points that some countries have used the opportunity of their diversification strategy to both reduce their dependence on oil as a source of income, but also to diversify fiscally and reduce the impact of oil revenues, which we encourage other countries to follow suit. 

    MS. AL SHAMI: Thank you, Jihad. So we’ll take another round of questions from the room, and then we will turn to online. The lady in the first row, please. 

    QUESTIONER: Dr. Jihad, thank you for taking my question.  Nour Amache from Asharq Bloomberg.  I wanted to ask about Lebanon and Syria and to follow up on what my colleagues here asked about Egypt.  They were asking about the next review, if it’s in June, and the next tranche in June, if we can elaborate on that.  Now, regarding Lebanon, today the parliament passed the law of lifting bank secrecy.  Will this make or will this make the program with the IMF faster?  Will this increase the prospects of a program with Lebanon anytime soon, especially since I know the Lebanese authorities represented by the Finance Minister, the Economy Minister, and the Central Bank Governor are all here in Washington, and a lot of meetings have been undergoing?  That’s regarding Lebanon.  And regarding Syria, also a big Syrian delegation is here.  What has been reached so far with the Syrian counterparts?  Thank you. 

    MS. AL SHAMI: Thank you. One more question. Maybe we’ll go to the gentleman in the front here. 

    QUESTIONER: Thank you.  Mohammad Al-Lubani from Jordan Al-Mamlaka TV.  I’d like to ask in Arabic.  In light of our dependence on American exports, [ESQUAH] said that 25 percent of the exports go to the United States.  How would the tariffs affect Jordan, and are there any estimates of these losses by the Fund?  And what are the recommendations of the Fund in order to face these challenges? 

    MR. AZOUR: The discussions are, you know, continuing, and the engagement with the authorities is taking place during the Spring Meetings. As I mentioned earlier, we look forward to the next review to see an acceleration of the divestment strategy that is one of the key priorities because of its critical impact on sustaining growth in Egypt, providing opportunities to the private sector, and also helping in the effort that Egypt is pursuing in reducing the debt. In the context of high interest rate, it’s very important to address debt service issue, and this would be accelerated by reducing the debt.  Therefore, we look forward to see progress on the authorities’ plan in terms of divestment.

    On Lebanon, the Fund has been supportive of Lebanon, and a staff-level agreement has been reached in 2022.  Lebanon staff, Lebanon team, is and remained actively engaged with the authorities, providing technical assistance.  And recently, we had two staff visits to Lebanon and the authorities have engaged with our team in order to reactivate a potential program.  They have expressed their interest for that.  The Lebanese economic and financial situation has been made

    more challenging with the recent implications of the war and the massive destruction that in addition to the need to address the financial and economic situation, Lebanon is also facing the need to deal with the reconstruction. 

    The pillars of the program will remain valid as they were negotiated.  Macroeconomic stability, based on addressing the legacy of the financial sector.  The legacy of debt, address the debt issue.  Second pillar is to deal with the macroeconomic stability through fiscal consolidation.  Third pillar is to strengthen governance by reforming SOEs and also increasing and improving the confidence factor.  And third is to address social issues, especially now with issues related to the reconstructions.  Discussions are taking place and staff is on active dialogue with the Lebanese authorities. 

    We are in discussion and therefore I think the discussions that we are having during the Spring Meetings are giving the opportunity for us to understand what are the reform priorities of the Lebanese government.  As you know, staff had a couple of visits in the last few weeks, and we will keep our active engagement with the Lebanese authorities.

    On Syria.  Of course, Syria has been absent for the last 15 years due to the war, and their engagement with the institution has been fairly limited since 2011.  The last Article IV consultation with Syria took place in 2009.  The international community and the regional community has been actively engaged in order to see how we could help Syria recover from a long period of war. 

    We had a preparatory meeting preparatory meeting in AlUla back in February where regional institutions and the international community have agreed to have another follow-up coordination meeting that took place last Tuesday where representatives from international institutions, bilaterals, have convened in order to assess the needs of Syria and also to develop a framework of coordination.  The Fund is engaged to support the international community in its engagement with Syria.  We have already started our assessment of the macroeconomic situation, the institutional capacity, and we look forward to continue our engagement with the Syrian authorities. 

    MS. AL SHAMI: Then you have one more question on Jordan.

    MR. AZOUR: Yes, Jordan. In Arabic?  Okay.  Jordan is one of the countries that have been affected by the tariffs, but this is still limited because of the kind of exports or the relationship between Jordan and the United States.  And Jordan managed to overcome, in the recent years, to overcome several shocks, including shocks related to the variability and volatility and the effect of the Gaza issues on the economy of Jordan.  And the latest reviews emphasized the need for Jordan to keep stability and also, despite the external shocks, to take the needed measures in order to improve the macroeconomic situation and to reinforce the economy.  And there has been discussions about supporting Jordan through a new mechanism, the Resilience and Sustainability Facility, in order to help Jordan in the measures that would help it improve adaptation with the climate change and other shocks and other pandemics.  There is actually progress in this regard.  And there will be a review next month by the Executive Board of the Fund about Jordan. 

    MS. AL SHAMI: We’ll turn to Dania, who’s on Webex online. Dania, please go ahead. 

    QUESTIONER: Hello, can you hear me? 

    MS. AL SHAMI: Yes, you can hear you.

    QUESTIONER: Hi.  Hello Dr. Jihad, I just have a follow-up question on the break-even oil prices for the Gulf.  In the October report, countries like Saudi Arabia had a very high break-even price of around 90.  I think it was the second biggest highest in the GCC after Bahrain.  I just wanted to see, this figure is likely to increase given the high expenditures, the lower oil prices.  How will the lower oil prices — you mentioned about the impact on GDP, but the prices, I think, since the beginning of the year have dropped by more than $10.00.  So, the impact has it been considered in the Regional Economic Report?  And especially because I don’t know the report, did it include the impact of the tariffs and the impact of the increase in OPEC production from May, which is accelerated?  And just one clarification, with regards to Saudi break-even, some analysts include the expenditure of the Public Investment Fund.  Is that part of the IMF estimates for the break-even?  What’s included in the break-even?  Thank you very much. 

    MS. AL SHAMI: Thank you. Any additional questions on GCC? Okay, let’s take the gentleman in the middle. 

    QUESTIONER: Hello Mr. Azour, Madame Al Shami, thank you for the opportunity.  Philippe Hage Boutros from L’Orient-Le Jour, Lebanon.  How does the IMF assess the potential impact of declining oil revenues stemming from a possible drop in prices amid the tariff crisis on the capacity and willingness of the Gulf countries to fund international aid, particularly for countries like Lebanon and Syria that urgently need reconstruction financing?  Does it anticipate a significant or relatively limited effect?  Thank you. 

    MS. AL SHAMI: Thank you. And we had one more question on Saudi that we received online. In light of the global trade repercussions, what is the effect on the Saudi market, especially on inflation and growth?  This question comes from Mohammed Al Sulami from Al Akhbariyah in Saudi Arabia. 

    MR. AZOUR: Let me start with Dania’s question. Dania, let me start by saying that over the last few years from a fiscal perspective, Saudi has made a significant improvement through various reforms in order to diversify revenues outside oil and also reduce certain expenditures, including on the subsidy side. And this effort to diversify revenues has led to an increase of non-oil revenues in the GDP for Saudi.  Of course, the last couple of years have been beneficial in terms of providing Saudi and other GCC countries with surplus in the fiscal as well as also in the current account, which have led to increase in buffers.  Of course, still the oil sector represent an important source of revenue and it’s still also an important source of foreign currencies. 

    Coming to the fiscal strategy, Saudi has established a medium-term fiscal framework that anchors policies and also help them deal with the volatility in oil price and become less pro cyclicals.  Of course, the increase in oil price, sorry, the decline in oil price will have impact on the fiscal and will lead to a potential additional drop in fiscal situation. 

    As I mentioned earlier, a decline of $10.00 per barrel or a decline of $1 million of production will have an impact on the fiscal between 2 to 3 percent.  The decline in oil price is accompanied with a recovery in oil production and Saudi was one of the largest, I would say, contributor to the voluntary drop in oil export. 

    When it comes to the link between fiscal and the investment strategy, the investment strategy has been also put in the medium-term framework in the context of the Vision 2030 and regularly there are updates, recalibration and also phasing, based on the capacity to implement and the priorities.

    In our projections, although developments were taking place almost at the time when we were releasing our outlook, we took into consideration the new assumptions on the oil price for this year as well as also on the growth projections. 

    The second question related to Saudi.  The impact of the latest developments on the Saudi economy.  Undoubtedly, the trade relations regarding the non-oil sector is limited with the United States and therefore the impact will also be limited on trade related to tariffs, especially as oil and gas are exempt from the increase in tariffs.  But there will be an indirect impact, as we’ve said.  Saudi Arabia also has a dollarized economy, whether on the side of exports or imports, and therefore the impact will be limited. 

    On the other hand, the reduction or the depreciation of the dollar will affect services, especially tourism.  And this is a sector that Saudi Arabia is trying to develop by establishing new expansion for tourism in Saudi Arabia.

    The other related question on support to the reconstruction in the region.  Let me first say two things.  One, ODA has declined over the last few years, and more recently with the decisions to stop some of the international assistance by USAID and others.  This will have an important impact, especially on countries in fragility who depend heavily on aid.  Countries like Somalia, Sudan, countries like Yemen.  And this represents a risk not only on the fiscal side, but also on the humanitarian side on food security.  This is the first point. 

    The second point is the region is, we’re talking here about the Levant, is going through an important prospect of post-conflict recovery.  Lebanon, Syria, Palestine, and hopefully, Yemen, and Sudan.  This would require strong international and financial assistance.  Of course, this also would require to accelerate certain number of reforms that will allow the private sector to provide financing.  Those countries have strong diasporas, and the recovery could also be co-led by international assistance, also by private sector support.  And some of the reforms, be it in Lebanon or in Syria, are very important to regain confidence and will allow private sector to play its key role in recovering those economies. 

    The region has been very supportive.  And when we look at the official assistance and the interest that is being shown by several countries in the region, be it in the recent meeting that took place in Saudi Arabia, in Al Ula, where ministers of finance from the GCC and regional institutions convened in order to explore opportunities to provide more assistance to those countries. 

    Again, I think it’s very important also to highlight that assistance has to accompany reform programs that will lay the ground to strong institutions will provide confidence for both citizens and also international, private and public community, in order to accelerate the recovery. 

    MS. AL SHAMI: Thank you, Jihad. We’ll take one more round of questions.  The lady on the second row here, please. 

    QUESTIONER:  Hello, I’m Mariam Ali from Dawn News Pakistan.  My question is how will the global tariff war uniquely impact Pakistan?  Any need of buffers in place to mitigate risks to the country?  Thank you. 

    MS. AL SHAMI: Thank you. Let’s take maybe one more question. The gentleman here sitting in the front. 

    QUESTIONER: Thank you, , Director Azour.  My question is on Yemen.  Igor Naimushin, RIA News Agency, D.C. Bureau.  So, last week U.S. struck Ras Isa fuel part in Yemen.  I would like to ask you to outline what repercussions this strike will have on energy security and economic situation in Yemen and broadly in region?  And if you could, provide any details how the IMF — what is the IMF view on longer-term risks for the region as U.S. operation on Yemen continues to unfold?  Thank you. 

    MS. AL SHAMI: Thank you. We’ll take one more question from the gentleman here in the –.

    QUESTIONER: Hi, my name is Magnus Sherman.  I wanted to return to Lebanon.  The new Prime Minister has pledged to not touch the hard currency deposits.  Does the IMF support that position? 

    MS. AL SHAMI: Thank you. And we have an online question from Camille Faris Abu Rafael. How can low- and middle-income countries in MENA balance urgent social needs with long-term fiscal sustainability amid rising debt and global uncertainty and persistently high interest rates?  We’ll take these questions, and we’ll take another round.  Thank you. 

    MR. AZOUR: On Pakistan. Pakistan made significant progress in restoring macroeconomic stability over the last 18 months and the numbers are, for Pakistan, are showing improvement both in terms of growth as well as also in inflation that dropped from 12.6 percent last year in 2024 fiscal year to 6.5 percent this year, expected to stay at this level for next year.  Debt is also stabilizing in the case of Pakistan, and recently Pakistan has been upgraded by rating agencies. 

    Of course, trade tensions will affect relatively Pakistan maybe more than the average in the region.  But I would say the impact on Pakistan directly can be offset by other measures that would allow the Pakistani economy to reposition itself in a world that is in the midst of one of the largest transformation in terms of trade, economic opportunities, and to reposition itself in order to address any risks, but also to potentially benefit from change in the trade routes. 

    The question on Yemen the situation on Yemen is extremely preoccupying at the humanitarian level, both in terms of food security as well as also in terms of human suffering.  And this situation has been inflicting heavy toll on the Yemeni people for a long period of time.  Of course, broadly speaking, instability has been one of the main issues that the region is dealing with.  Instability is one of the key sources of uncertainty for the region.  Addressing this instability is key in providing security for people to improve their living conditions, providing stability for the trade routes, and also provide opportunities for people to rebuild and reconstruct.  The Fund is engaged to (A) keep a very strong contacts with Yemen, provide technical assistance at a time where we cannot provide because of the security situation, financial assistance.  Therefore, we are actively supporting through technical assistance.  And we are also in regular engagement with the authorities. 

    Our next plan is to reengage through Article IV in order to assess the economic situation in Yemen, help the internationally recognized government assess the overall debt situation and the debt liabilities in order, later on, to help Yemen deal with the debt situation, and provide right assessment for the donor community to provide assistance. 

    Political stabilization security is very important to preserve human and social conditions, and the Fund stands ready to help Yemen as well as also other countries facing fragility and conflicts in the region.  And this is something that we are increasing our resources to provide support to those countries. 

    Lebanon.  Lebanon problems are complex in terms of how to address the overall financial challenge.  The solution has to deal through a comprehensive approach with all the financial issues that Lebanon is facing.  A piecemeal approach is not what Lebanon needs today.  A reform package that restores confidence, addresses the legacy of the past, provides opportunities for the economy to recover, by also promoting the capacity of the financial system to finance the recovery, mobilize international assistance to help Lebanon dealing with the reconstruction needs, and also support the reforms are priorities that our team is currently discussing with the Lebanese authorities. 

    The question related to balancing short-term and medium-term.  I think it’s a very important question.  We live currently in a world of high uncertainty and in our outlook this spring we have — and I would encourage you to read it,  it’s very interesting piece — we have tried to assess the impact of uncertainty on the region and the uncertainty is of multiple layers.  A global uncertainty, regional, geopolitical and conflict situation, but also internal or local uncertainties.  Those are important issues for countries to address. 

    In very brief, countries need to in the short term to preserve stability and that would require to increase their buffers.  And for those who have limited buffers to accelerate fiscal consolidations to reduce the risk, address some of their financing issues, especially countries who have high level of debt and for those who have buffers, preserve those and use them when they need.  But I think what is really important, especially given the lasting negative impact of uncertainties on countries, is to address the medium-term issues.  And addressing the medium-term issues will help unlock growth, accelerating structural reforms, improving economic conditions, provide stronger social protection framework by moving from untargeted subsidies to something that is more meaningful in terms of social support would be extremely beneficial for countries in the region. 

    MS. AL SHAMI: Thank you very much, Jihad and I’m afraid we have run out of time. Thank you all for participating with us today and as always, we will be posting the transcript online.  But just a reminder that we will be launching our report next week on May 1 so stay tuned for that.  And as Jihad mentioned, please join us tomorrow at 2:30 for the seminar on how countries can navigate uncertainties.  Jihad, any last words? 

    MR. AZOUR: Only to say thank you. And thanks to our friends here, the journalists. We look forward to provide you with more details in Dubai next week with all the details, as well as also country-specific information on our Regional Economic Outlook.  And two days after that, in Samarkand, in Uzbekistan, on the outlook for Caucasus and Central Asia.  Thank you very much. 

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Angham Al Shami

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Global Banks

  • MIL-OSI Russia: Press Briefing Transcript: Middle East and Central Asia Department, Spring Meetings 2025

    Source: IMF – News in Russian

    April 24, 2025

    Speaker: Mr.Jihad Azour, Director of Middle East and Central Asia Department, IMF

    Moderator: Ms. Angham Al Shami, Communications Officer, IMF

    MS. AL SHAMI: Good morning. Thank you for joining us in this press briefing on the Regional Economic Outlook for the Middle East and Central Asia. My name is Angham Al Shami, from the Communications Department here at the IMF. 

    If you’re joining us online, we do have Arabic and French interpretations that you can access on the IMF Regional Economic Outlook webpage and the IMF Press Center as well.  And for those of you in the room, you also have equipment to access that. 

    Today I’m joined by Jihad Azour, the Director of the Middle East and Central Asia Department, who will give us an overview of the outlook of the region, and then we will open the floor for your questions. With that, over to you, Jihad.

    MR. AZOUR: Thank you very much, Angham. Good morning, everyone, and welcome to the IMF 2025 Spring Meetings. Before answering your questions, I will briefly outline the economic outlook for the Middle East and North Africa as well as the Caucasus and Central Asia.  Let me first start with a few words on the recent developments.

    The global economy stands at a delicate crossroads.  The global recovery of recent years faces new risks as governments reorder their policy priorities.  The recent escalation in trade tensions has already damaged global growth prospects while triggering intense financial volatility.  More broadly, the extraordinary increase in global uncertainty associated with trade policy and increased geopolitical fragmentation will continue to erode confidence for quite some time and represents a serious downside risk to global growth.

    For MENA and CCA economies, these developments are adding to existing regional source of uncertainty, including ongoing conflicts, pockets of political instability and climate vulnerability.  We continue to assess the impact of recently announced U.S. tariffs on MENA and CCA economies.  While the direct effects are expected to be modest, giving limited trade exposure and exemptions for energy products, the indirect effects could be more pronounced.  Slower growth will weaken external demand and remittances, while tighter financial conditions may challenge countries with elevated public debts.  Oil exporting economies could also see fiscal and external positions deteriorate due to the lower oil prices.  Some countries may benefit from trade diversion, but such gains could be short lived in a broader environment of trade contraction. 

    Let me now turn to the Middle East and North Africa.  Last year was particularly challenging for the region.  Conflict caused severe human and economic costs.  Regional growth in 2024 reached 1.8 percent, a downgrade revision of 0.2 percentage point from the October World Economic Outlook forecast.  Conflicts weigh on growth in some oil importing countries and extended OPEC+ voluntary production cuts continue to dampen activity in oil exporting economies.  For GCC countries, strong non-oil growth and diversification efforts were largely offset by oil production cuts. 

    Despite these challenges and high uncertainty, growth is projected to pick up in 2025 and 2026, assuming oil output rebounds, conflict related impacts stabilize, progress is made on structural reform and implementation.  However, expectations have been revised down compared to the October 2024 Regional Economic Outlook, reflecting weaker global growth and more modest effect of these drivers.  We now project growth at 2.6 percent in 2025 and 3.4 percent in 2026, a downward revision of 1.3 and 1 percentage points, respectively.  Inflation is projected to continue declining across MENA economies, remaining elevated only in few cases. 

    Let me now turn to the outlook for the Caucuses and Central Asia.  In contrast, economic activity in the CCA exceeded expectations in 2024, growing by 5.4 percent, driven by spillover effects from the war in Ukraine, which boosted domestic demand.  However, as these temporary effects normalize over the next few years, growth is expected to moderate due to weaker external demand, plateauing growth of hydrocarbon production, and reduced fiscal stimulus.  Despite the moderation in overall growth, inflation is expected to increase somewhat across the region and remain elevated in a few cases, reflecting still strong domestic demand. 

    Let me now turn to the risks to the outlook.  These projections are subject to extraordinary uncertainty and the risks to the baseline forecast remain tilted to the downside.  Four key risks stand out.  First, trade tension as a further escalation could dampen global demand, delay in oil production recovery, and tighten financial conditions.  Our analysis shows that persistence spikes in uncertainty triggered by global shocks are associated with large output losses both in MENA and CCA.  The second risk is geopolitical conflict.  The third one is climate shocks.  And the last one is the reduction in official development assistance.  This could further exacerbate food insecurity and humanitarian conditions in low-income and conflict-affected economies.  However, upside risks also exist.  The swift resolution of conflict and accelerated implementation of structural reforms could substantially improve regional growth prospects.  The implications of a potential peace agreement between Russia and Ukraine for the CCA region also remain uncertain. 

    Now the question is what are the policies that we recommend for countries and how they should prioritize them.  In the face of extraordinary uncertainty, MENA and CCA economies should respond along two key dimensions, manage short term instability, and use the opportunity to advance structural reforms for long-term growth.  The first priority is adapt to the new environment.  Countries must take steps to shield their economies from the impact of worst-case scenarios and prioritize safeguarding macroeconomic and financial stability.  The appropriate policy response will vary depending on each country’s initial conditions and vulnerability to risk. 

    Turning to more the long-term, countries should transform their economies.  Recent developments underscore the urgent need to accelerate the long-discussed structural reforms agenda across the region.  To reduce vulnerabilities to shocks and seize opportunities arising from the evolving global trade and financial landscape, it is essential to enhance governance, invest in human capital, advance digitalization, and foster a dynamic private sector.  Establishing strategic trade and investment corridors with other regions such as Sub-Saharan Africa and Asia, as well as within the region, including between GCC and Central Asia or GCC and North Africa, can help mitigate exposure to external uncertainty, enable greater risk sharing, and drive sustainable economic development. 

    We will delve into these policy priorities at the launch of our Regional Economic Outlook in Dubai next week and in Samarkand, in Uzbekistan, where on May 3 we are organizing jointly with the Uzbek government a GCC-CCA Economic Conference where Ministers of Finance and Governors of Central Banks from both regions, as well as representatives of IFIs and private sectors, will discuss deepening economic ties between these two regions.  We also invite you to join us tomorrow at 2:30 p.m. at the Atrium for a public panel discussion on the economic consequences of the high uncertainty in the MENA and CCA regions. 

    Before I open the floor to questions, I want to underscore the IMF’s deep commitment to supporting countries throughout the region with policy advice, technical assistance, and, in many cases, financial support.  Since early 2020, we have approved almost $50 billion in financing to countries across the MENA region, Pakistan, and the CCA, of which 14.8 have been approved since early 2024. 

    In closing, I want to highlight our engagement to post-conflict economies.  Strengthening economic fundamentals and rebuilding institutions will be essential to successful recovery.  The IMF, in coordination with the World Bank and regional partners, has established an informal coordination group to support recovery in conflict-affected states in the Middle East.  Our focus will be on capacity building, policy guidance, and financial assistance.  We are also working closely with authorities to help stabilize their economies, restore confidence, and lay foundations for sustainable growth. 

    Again, thank you very much for joining us this morning, and now I would like to welcome your questions.               

    MS. AL SHAMI: Thank you very much, Jihad, and now we will take your questions. And let’s start with the gentleman here in the first row, please.

    QUESTIONER: Thank you, Angham and Jihad.  I’m Amir Goumaa from Asharq Bloomberg.  IMF raised the gross forecasting for Egypt dispIte the regional downgrade.  Why is that?  And how can the MENA region turn the country trade disputes into opportunities? 

    MR. AZOUR: Excuse me?

    QUESTIONER: How can the MENA region turn the current trade disputes and tariffs into opportunities?  Like how can they make the best use of it? 

    MR. AZOUR: Thank you very much for your question.

    MS. AL SHAMI: Should we take more questions on Egypt? Perhaps should we take more questions on Egypt. We’ll start with this gentleman and then the gentleman in the back.  This one first. 

    QUESTIONER: Hello everyone.  My name is Ahmad Yaqub.  I’m the managing editor of Al Youm Al-Sabah Egyptian Newspaper.  I have two questions about Egypt.  The first one is about the expected exchange rate of the Egyptian pound against the U.S. dollar by the end of 2026, the next year, and the expected inflation rate and the economic growth rate of Egypt.  The second question is the next trench of the program, current program with the Egyptian authorities.  What is the timing of the next trench and the total amount of it?  Thank you so much. 

    MS. AL SHAMI: And then the gentleman here.

    QUESTIONER: Ramy Gabr from Al-Qahera News.  The global economic outlook carries good news.  Maybe for Egypt in terms of the economic growth in 2025.  How do you see that and what’s the facts and numbers led to this outlook?  Thank you. 

    MS. AL SHAMI: Over to you.

    MR. AZOUR: Thank you very much. Yes, please.

    QUESTIONER: I’m Lauren Holtmeier from S&P Global.  I wanted to ask about the fiscal break-even prices for oil production, specifically for the countries with high fiscal break-even prices like Saudi Arabia and Iraq.  And how will the lowered expectations for oil prices over the next couple of years affect their ability and their economic outlook?  And I recognize that the answer for those two countries might be very different. 

    MR. AZOUR: Thank you very much. I had three sets of questions. One on trade and the impact of the recent trade developments on the region and how those could be turned into an opportunity.  The second set of questions were on Egypt, and the third one was on the GCC and the oil market.  Let me start with the first one. 

    Countries of the region have limited trade dependence on the U.S., and therefore the recent trade and tariff decisions will have limited direct impact on those economies.  Yet it’s important also to highlight that there would be indirect impact.  And also those indirect impact may take different channels.  One impact is the impact that this could have on financial stability and capital flows.  We saw widening of spreads over the last few years, which is an issue that could affect the capacity of emerging economies and middle-income countries who have high levels of debt.  The second potential impact is impact on oil market.  We saw some softening in the oil price, as well as the forwards of oil price are showing a certain extension of those softening over the year.  And the third type of effect is the second-round impact due to trade diversion. 

    I will maybe go into more details about what are the policies that we recommend for countries to address those challenges.  Few countries have more exposure to the U.S. trade like Pakistan or Jordan, and those are specific cases.  I can address those.  Opportunities, of course, in any change there are opportunities, and over the last few years we saw successive shocks and transformation on the geopolitical front and the geoeconomic front, and those have affected the region.  The region stands at the crossroads between East and West, and therefore trade routes, connectivity, as well as also opportunities go through this region.  This would require, as I mentioned in my opening remarks, for countries in the region to seek new opportunities in terms of strengthening their economic relationships and trade ties with regions close to them, as well as also within countries in the region, which will call for new way of increasing connectivity and cooperation in the region. 

    The second set of questions is on Egypt.  Over the last year, growth in Egypt has improved, and we expect growth for the fiscal year 2025 to reach 3.8 percent.  For comparison, in 2024 it was 2.4 percent, and we expect that the growth will keep improving in 2026 and reach 4.3 percent.  Also, inflation went down from 33 percent on average for fiscal year 2024 to 19.7 percent in 2025, and we expect it to reach 12 percent in 2026, despite the various shocks.  Those positive developments reflect the implementation of the reform program that was supported by the IMF and was augmented back in March last year in order also to help Egypt address some of the external shocks, in particular the decline in revenues from the Suez Canal. 

    As you remember, the program is based on four pillars.  One, macroeconomic stability by addressing inflation that constitutes the main issue for economic stability through tightening the monetary policy.  The second is to address the debt issue by improving the primary surplus and also through an active debt management strategy and strengthening debt management organization to reduce gradually the debt and the weight of the debt through the debt service on the economy.  The third important pillar is to preserve the economy from external shocks, and this is the role of the flexibility in the exchange rate.  Flexibility in the exchange rate in a time of high level of uncertainty plays an important way to protect the Egyptian economy from external shocks, and its flexibility has proven to be beneficial to the stability of the Egyptian economy.  The fourth pillar is growing the economy and give a bigger weight to the private sector, and we encourage the authorities to strengthen and accelerate the reinvestment strategy that would allow more investment to come to the Egyptian economy, would give more space to the private sector, and will help the Egyptian economy and the Egyptian people get better opportunities in a time where those international changes would require an acceleration of economic transformation.  The review has been completed in March, and as you know, we had also another facility that was provided to Egypt to help Egypt deal with climate issues, and our engagement with the authorities remain very active.  Shall I move to GCC? 

    MS. AL SHAMI: Yes.

    MR. AZOUR: The next trench will be with the next review. On the GCC, well, of course the direct impact of the trade shock on the region has been limited except that with the prospect of the decline in oil price, it comes at a time where we see a resumption of increase of oil production with the implementation of what has been agreed, though at a slower pace, of the December decision of the OPEC+ agreement.

    As you know, countries of the GCC have different fundamentals and different level of buffers, and therefore there is no one break-even point for all countries.  Our estimates are showing, though, that a decline in oil price of $10 would weaken the fiscal situation by somewhat between 2.3 to 2.7 percent of GDP, and it also, it has similar impact on the external account between 2.5 to 2.7 percent of GDP. 

    I would like to highlight two additional points that some countries have used the opportunity of their diversification strategy to both reduce their dependence on oil as a source of income, but also to diversify fiscally and reduce the impact of oil revenues, which we encourage other countries to follow suit. 

    MS. AL SHAMI: Thank you, Jihad. So we’ll take another round of questions from the room, and then we will turn to online. The lady in the first row, please. 

    QUESTIONER: Dr. Jihad, thank you for taking my question.  Nour Amache from Asharq Bloomberg.  I wanted to ask about Lebanon and Syria and to follow up on what my colleagues here asked about Egypt.  They were asking about the next review, if it’s in June, and the next tranche in June, if we can elaborate on that.  Now, regarding Lebanon, today the parliament passed the law of lifting bank secrecy.  Will this make or will this make the program with the IMF faster?  Will this increase the prospects of a program with Lebanon anytime soon, especially since I know the Lebanese authorities represented by the Finance Minister, the Economy Minister, and the Central Bank Governor are all here in Washington, and a lot of meetings have been undergoing?  That’s regarding Lebanon.  And regarding Syria, also a big Syrian delegation is here.  What has been reached so far with the Syrian counterparts?  Thank you. 

    MS. AL SHAMI: Thank you. One more question. Maybe we’ll go to the gentleman in the front here. 

    QUESTIONER: Thank you.  Mohammad Al-Lubani from Jordan Al-Mamlaka TV.  I’d like to ask in Arabic.  In light of our dependence on American exports, [ESQUAH] said that 25 percent of the exports go to the United States.  How would the tariffs affect Jordan, and are there any estimates of these losses by the Fund?  And what are the recommendations of the Fund in order to face these challenges? 

    MR. AZOUR: The discussions are, you know, continuing, and the engagement with the authorities is taking place during the Spring Meetings. As I mentioned earlier, we look forward to the next review to see an acceleration of the divestment strategy that is one of the key priorities because of its critical impact on sustaining growth in Egypt, providing opportunities to the private sector, and also helping in the effort that Egypt is pursuing in reducing the debt. In the context of high interest rate, it’s very important to address debt service issue, and this would be accelerated by reducing the debt.  Therefore, we look forward to see progress on the authorities’ plan in terms of divestment.

    On Lebanon, the Fund has been supportive of Lebanon, and a staff-level agreement has been reached in 2022.  Lebanon staff, Lebanon team, is and remained actively engaged with the authorities, providing technical assistance.  And recently, we had two staff visits to Lebanon and the authorities have engaged with our team in order to reactivate a potential program.  They have expressed their interest for that.  The Lebanese economic and financial situation has been made

    more challenging with the recent implications of the war and the massive destruction that in addition to the need to address the financial and economic situation, Lebanon is also facing the need to deal with the reconstruction. 

    The pillars of the program will remain valid as they were negotiated.  Macroeconomic stability, based on addressing the legacy of the financial sector.  The legacy of debt, address the debt issue.  Second pillar is to deal with the macroeconomic stability through fiscal consolidation.  Third pillar is to strengthen governance by reforming SOEs and also increasing and improving the confidence factor.  And third is to address social issues, especially now with issues related to the reconstructions.  Discussions are taking place and staff is on active dialogue with the Lebanese authorities. 

    We are in discussion and therefore I think the discussions that we are having during the Spring Meetings are giving the opportunity for us to understand what are the reform priorities of the Lebanese government.  As you know, staff had a couple of visits in the last few weeks, and we will keep our active engagement with the Lebanese authorities.

    On Syria.  Of course, Syria has been absent for the last 15 years due to the war, and their engagement with the institution has been fairly limited since 2011.  The last Article IV consultation with Syria took place in 2009.  The international community and the regional community has been actively engaged in order to see how we could help Syria recover from a long period of war. 

    We had a preparatory meeting preparatory meeting in AlUla back in February where regional institutions and the international community have agreed to have another follow-up coordination meeting that took place last Tuesday where representatives from international institutions, bilaterals, have convened in order to assess the needs of Syria and also to develop a framework of coordination.  The Fund is engaged to support the international community in its engagement with Syria.  We have already started our assessment of the macroeconomic situation, the institutional capacity, and we look forward to continue our engagement with the Syrian authorities. 

    MS. AL SHAMI: Then you have one more question on Jordan.

    MR. AZOUR: Yes, Jordan. In Arabic?  Okay.  Jordan is one of the countries that have been affected by the tariffs, but this is still limited because of the kind of exports or the relationship between Jordan and the United States.  And Jordan managed to overcome, in the recent years, to overcome several shocks, including shocks related to the variability and volatility and the effect of the Gaza issues on the economy of Jordan.  And the latest reviews emphasized the need for Jordan to keep stability and also, despite the external shocks, to take the needed measures in order to improve the macroeconomic situation and to reinforce the economy.  And there has been discussions about supporting Jordan through a new mechanism, the Resilience and Sustainability Facility, in order to help Jordan in the measures that would help it improve adaptation with the climate change and other shocks and other pandemics.  There is actually progress in this regard.  And there will be a review next month by the Executive Board of the Fund about Jordan. 

    MS. AL SHAMI: We’ll turn to Dania, who’s on Webex online. Dania, please go ahead. 

    QUESTIONER: Hello, can you hear me? 

    MS. AL SHAMI: Yes, you can hear you.

    QUESTIONER: Hi.  Hello Dr. Jihad, I just have a follow-up question on the break-even oil prices for the Gulf.  In the October report, countries like Saudi Arabia had a very high break-even price of around 90.  I think it was the second biggest highest in the GCC after Bahrain.  I just wanted to see, this figure is likely to increase given the high expenditures, the lower oil prices.  How will the lower oil prices — you mentioned about the impact on GDP, but the prices, I think, since the beginning of the year have dropped by more than $10.00.  So, the impact has it been considered in the Regional Economic Report?  And especially because I don’t know the report, did it include the impact of the tariffs and the impact of the increase in OPEC production from May, which is accelerated?  And just one clarification, with regards to Saudi break-even, some analysts include the expenditure of the Public Investment Fund.  Is that part of the IMF estimates for the break-even?  What’s included in the break-even?  Thank you very much. 

    MS. AL SHAMI: Thank you. Any additional questions on GCC? Okay, let’s take the gentleman in the middle. 

    QUESTIONER: Hello Mr. Azour, Madame Al Shami, thank you for the opportunity.  Philippe Hage Boutros from L’Orient-Le Jour, Lebanon.  How does the IMF assess the potential impact of declining oil revenues stemming from a possible drop in prices amid the tariff crisis on the capacity and willingness of the Gulf countries to fund international aid, particularly for countries like Lebanon and Syria that urgently need reconstruction financing?  Does it anticipate a significant or relatively limited effect?  Thank you. 

    MS. AL SHAMI: Thank you. And we had one more question on Saudi that we received online. In light of the global trade repercussions, what is the effect on the Saudi market, especially on inflation and growth?  This question comes from Mohammed Al Sulami from Al Akhbariyah in Saudi Arabia. 

    MR. AZOUR: Let me start with Dania’s question. Dania, let me start by saying that over the last few years from a fiscal perspective, Saudi has made a significant improvement through various reforms in order to diversify revenues outside oil and also reduce certain expenditures, including on the subsidy side. And this effort to diversify revenues has led to an increase of non-oil revenues in the GDP for Saudi.  Of course, the last couple of years have been beneficial in terms of providing Saudi and other GCC countries with surplus in the fiscal as well as also in the current account, which have led to increase in buffers.  Of course, still the oil sector represent an important source of revenue and it’s still also an important source of foreign currencies. 

    Coming to the fiscal strategy, Saudi has established a medium-term fiscal framework that anchors policies and also help them deal with the volatility in oil price and become less pro cyclicals.  Of course, the increase in oil price, sorry, the decline in oil price will have impact on the fiscal and will lead to a potential additional drop in fiscal situation. 

    As I mentioned earlier, a decline of $10.00 per barrel or a decline of $1 million of production will have an impact on the fiscal between 2 to 3 percent.  The decline in oil price is accompanied with a recovery in oil production and Saudi was one of the largest, I would say, contributor to the voluntary drop in oil export. 

    When it comes to the link between fiscal and the investment strategy, the investment strategy has been also put in the medium-term framework in the context of the Vision 2030 and regularly there are updates, recalibration and also phasing, based on the capacity to implement and the priorities.

    In our projections, although developments were taking place almost at the time when we were releasing our outlook, we took into consideration the new assumptions on the oil price for this year as well as also on the growth projections. 

    The second question related to Saudi.  The impact of the latest developments on the Saudi economy.  Undoubtedly, the trade relations regarding the non-oil sector is limited with the United States and therefore the impact will also be limited on trade related to tariffs, especially as oil and gas are exempt from the increase in tariffs.  But there will be an indirect impact, as we’ve said.  Saudi Arabia also has a dollarized economy, whether on the side of exports or imports, and therefore the impact will be limited. 

    On the other hand, the reduction or the depreciation of the dollar will affect services, especially tourism.  And this is a sector that Saudi Arabia is trying to develop by establishing new expansion for tourism in Saudi Arabia.

    The other related question on support to the reconstruction in the region.  Let me first say two things.  One, ODA has declined over the last few years, and more recently with the decisions to stop some of the international assistance by USAID and others.  This will have an important impact, especially on countries in fragility who depend heavily on aid.  Countries like Somalia, Sudan, countries like Yemen.  And this represents a risk not only on the fiscal side, but also on the humanitarian side on food security.  This is the first point. 

    The second point is the region is, we’re talking here about the Levant, is going through an important prospect of post-conflict recovery.  Lebanon, Syria, Palestine, and hopefully, Yemen, and Sudan.  This would require strong international and financial assistance.  Of course, this also would require to accelerate certain number of reforms that will allow the private sector to provide financing.  Those countries have strong diasporas, and the recovery could also be co-led by international assistance, also by private sector support.  And some of the reforms, be it in Lebanon or in Syria, are very important to regain confidence and will allow private sector to play its key role in recovering those economies. 

    The region has been very supportive.  And when we look at the official assistance and the interest that is being shown by several countries in the region, be it in the recent meeting that took place in Saudi Arabia, in Al Ula, where ministers of finance from the GCC and regional institutions convened in order to explore opportunities to provide more assistance to those countries. 

    Again, I think it’s very important also to highlight that assistance has to accompany reform programs that will lay the ground to strong institutions will provide confidence for both citizens and also international, private and public community, in order to accelerate the recovery. 

    MS. AL SHAMI: Thank you, Jihad. We’ll take one more round of questions.  The lady on the second row here, please. 

    QUESTIONER:  Hello, I’m Mariam Ali from Dawn News Pakistan.  My question is how will the global tariff war uniquely impact Pakistan?  Any need of buffers in place to mitigate risks to the country?  Thank you. 

    MS. AL SHAMI: Thank you. Let’s take maybe one more question. The gentleman here sitting in the front. 

    QUESTIONER: Thank you, , Director Azour.  My question is on Yemen.  Igor Naimushin, RIA News Agency, D.C. Bureau.  So, last week U.S. struck Ras Isa fuel part in Yemen.  I would like to ask you to outline what repercussions this strike will have on energy security and economic situation in Yemen and broadly in region?  And if you could, provide any details how the IMF — what is the IMF view on longer-term risks for the region as U.S. operation on Yemen continues to unfold?  Thank you. 

    MS. AL SHAMI: Thank you. We’ll take one more question from the gentleman here in the –.

    QUESTIONER: Hi, my name is Magnus Sherman.  I wanted to return to Lebanon.  The new Prime Minister has pledged to not touch the hard currency deposits.  Does the IMF support that position? 

    MS. AL SHAMI: Thank you. And we have an online question from Camille Faris Abu Rafael. How can low- and middle-income countries in MENA balance urgent social needs with long-term fiscal sustainability amid rising debt and global uncertainty and persistently high interest rates?  We’ll take these questions, and we’ll take another round.  Thank you. 

    MR. AZOUR: On Pakistan. Pakistan made significant progress in restoring macroeconomic stability over the last 18 months and the numbers are, for Pakistan, are showing improvement both in terms of growth as well as also in inflation that dropped from 12.6 percent last year in 2024 fiscal year to 6.5 percent this year, expected to stay at this level for next year.  Debt is also stabilizing in the case of Pakistan, and recently Pakistan has been upgraded by rating agencies. 

    Of course, trade tensions will affect relatively Pakistan maybe more than the average in the region.  But I would say the impact on Pakistan directly can be offset by other measures that would allow the Pakistani economy to reposition itself in a world that is in the midst of one of the largest transformation in terms of trade, economic opportunities, and to reposition itself in order to address any risks, but also to potentially benefit from change in the trade routes. 

    The question on Yemen the situation on Yemen is extremely preoccupying at the humanitarian level, both in terms of food security as well as also in terms of human suffering.  And this situation has been inflicting heavy toll on the Yemeni people for a long period of time.  Of course, broadly speaking, instability has been one of the main issues that the region is dealing with.  Instability is one of the key sources of uncertainty for the region.  Addressing this instability is key in providing security for people to improve their living conditions, providing stability for the trade routes, and also provide opportunities for people to rebuild and reconstruct.  The Fund is engaged to (A) keep a very strong contacts with Yemen, provide technical assistance at a time where we cannot provide because of the security situation, financial assistance.  Therefore, we are actively supporting through technical assistance.  And we are also in regular engagement with the authorities. 

    Our next plan is to reengage through Article IV in order to assess the economic situation in Yemen, help the internationally recognized government assess the overall debt situation and the debt liabilities in order, later on, to help Yemen deal with the debt situation, and provide right assessment for the donor community to provide assistance. 

    Political stabilization security is very important to preserve human and social conditions, and the Fund stands ready to help Yemen as well as also other countries facing fragility and conflicts in the region.  And this is something that we are increasing our resources to provide support to those countries. 

    Lebanon.  Lebanon problems are complex in terms of how to address the overall financial challenge.  The solution has to deal through a comprehensive approach with all the financial issues that Lebanon is facing.  A piecemeal approach is not what Lebanon needs today.  A reform package that restores confidence, addresses the legacy of the past, provides opportunities for the economy to recover, by also promoting the capacity of the financial system to finance the recovery, mobilize international assistance to help Lebanon dealing with the reconstruction needs, and also support the reforms are priorities that our team is currently discussing with the Lebanese authorities. 

    The question related to balancing short-term and medium-term.  I think it’s a very important question.  We live currently in a world of high uncertainty and in our outlook this spring we have — and I would encourage you to read it,  it’s very interesting piece — we have tried to assess the impact of uncertainty on the region and the uncertainty is of multiple layers.  A global uncertainty, regional, geopolitical and conflict situation, but also internal or local uncertainties.  Those are important issues for countries to address. 

    In very brief, countries need to in the short term to preserve stability and that would require to increase their buffers.  And for those who have limited buffers to accelerate fiscal consolidations to reduce the risk, address some of their financing issues, especially countries who have high level of debt and for those who have buffers, preserve those and use them when they need.  But I think what is really important, especially given the lasting negative impact of uncertainties on countries, is to address the medium-term issues.  And addressing the medium-term issues will help unlock growth, accelerating structural reforms, improving economic conditions, provide stronger social protection framework by moving from untargeted subsidies to something that is more meaningful in terms of social support would be extremely beneficial for countries in the region. 

    MS. AL SHAMI: Thank you very much, Jihad and I’m afraid we have run out of time. Thank you all for participating with us today and as always, we will be posting the transcript online.  But just a reminder that we will be launching our report next week on May 1 so stay tuned for that.  And as Jihad mentioned, please join us tomorrow at 2:30 for the seminar on how countries can navigate uncertainties.  Jihad, any last words? 

    MR. AZOUR: Only to say thank you. And thanks to our friends here, the journalists. We look forward to provide you with more details in Dubai next week with all the details, as well as also country-specific information on our Regional Economic Outlook.  And two days after that, in Samarkand, in Uzbekistan, on the outlook for Caucasus and Central Asia.  Thank you very much. 

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Angham Al Shami

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/04/24/tr-04242025-mcd-press-briefing-sms-2025

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI Canada: B.C. officers honoured for valour, commitment to public safety

    Source: Government of Canada regional news

    On Thursday, April 24, 2025, awards were presented to the following honourees who were selected by a committee of representatives from the B.C. Association of Chiefs of Police and the Ministry of Public Safety and Solicitor General’s Police Services Division:

    AWARDS OF VALOUR:

    Barriere RCMP Detachment

    Const. Jeremy Galvin – for their courageous efforts when responding to an armed individual on the side of a highway, quickly stopping the threat.

    Bella Bella RCMP Detachment

    Cpl. Chad Fitzpatrick – for their exceptional bravery and selflessness in the face of a devastating residential fire.

    Chase RCMP Detachment

    Const. Mario Jakic – for their quick actions, preventing a woman from falling to her death, while placing themselves in harm’s way.

    Dawson Creek RCMP Detachment

    Const. Lukas Bielicz and Insp. Damon Werrell (now retired) – for their exceptional courage and swift response to a bear attack.

    Golden RCMP Detachment

    Cpl. Lucas Sovio – for their bravery and de-escalation tactics, while responding to a suicidal individual that shot at innocent people inside their home.

    Kamloops RCMP Detachment

    Const. Taylor Callens – for their bravery when rescuing a woman during a suicide attempt.

    Const. Matt James – for their exceptional courage and resilience in the face of grave danger.

    Const. Michael Scherpenisse – for their bravery and de-escalation efforts during a potential hostage situation and apprehending an armed robber.

    Constables Dylan Colbourne, Ryan Long and Howard Morine – for their outstanding bravery as they put themselves in harm’s way in pursuit of an armed suspect.

    Kelowna RCMP Detachment

    Const. Chris Carruthers – for putting themselves in harm’s way, while protecting the public and preventing further violence from a suspect.

    Keremeos RCMP Detachment

    Const. Zachary Plensky – for their incredible strength and resilience when they restrained and transported a suspect by himself, in a remote area without radio contact, while injured from the offender.

    Lower Mainland Emergency Response Team

    Constables Shawn Jones, Guillaume Lecours, Darryl Newman, Antony Scarpelli; and corporals Darren Bleker, Stephen Bodden, Joshua Cropley, Luke Johnston, Armand Pinnegar and Ian Sneddon – for their actions, while putting their lives at substantial risk during a dangerous situation and preventing further danger to the community.

    Staff Sgt. Dave Malone – for their efforts in stopping an active shooter from continuing to take the lives of innocent bystanders in the community.

    Merritt RCMP Detachment

    Constables Derek Bodner, Jerry Davey, Carly Gerein, John Julyan and Nick Maciejewski; and Sgt. Brock Hedrick – for putting their safety on the line as they pursued a property theft suspect who continuously shot at them with an automatic rifle as they fled with their young child in the vehicle. 

    Mission RCMP Detachment

    Const. Sukhdip Sidhu – for their bravery when rescuing a resident from a burning building.

    Powell River RCMP Detachment

    Const. Matthew Horsfield – for risking their safety and swimming 200 metres into a body of water to rescue a suicidal female.

    RCMP “E” Division, Explosive Disposal Unit

    Const. Tyler Folz, Cpl. Ryan Ziebart, Sgt. Peter Cucheran and Staff Sgt. Brent Elwood – for their bravery, while responding to a critical incident involving a significant explosive devices threat.

    RCMP Integrated Homicide Investigation Team

    Constables Ahmed Durrani, Hardip Gill, Jasmail Takhar; and Cpl. Harinder Sandhu – for their remarkable foresight, bravery and overwhelming sense of duty, while apprehending a violent individual after a shooting.

    Salmon Arm RCMP Detachment

    Sgt. Joseph Morrisey – for their bravery and quick action when assisting in the arrest of a violent suspect.

    Sicamous RCMP Detachment

    Reserve Const. Patrick Pyper – for risking their own safety to rescue a woman who fell through the ice on a lake at night.

    Smithers RCMP Detachment

    Const. Ashley van Leeuwen – for demonstrating exceptional bravery and composure when confronting and restraining an armed and combative suicidal male, ensuring the safety of his family and co-ordinating a safe arrest.

    Southeast District Emergency Response Team

    Const. Michael Dibblee – for putting themselves at substantial risk during the planned arrest of a violent prolific offender that had previously carried and used weapons in the commission of offences.

    Constables Paul Cooke and Lee Taylor; corporals Dave Lewis, Stephen Prior and Matthew Rattee; and Sgt. Joseph Morrisey – for their bravery when responding and apprehending two violent suspects participating in a crime spree that threatened the lives of the public.

    Squamish RCMP Detachment

    Const. Hamza Khan – for their efforts in saving a victim trapped in their car after a life-threatening car collision.

    Const. Mark McMahon – for their efforts during a high-risk arrest of multiple suspects involved in a brazen daytime shooting.

    Sunshine Coast RCMP Detachment

    Const. Joshua Jewett – for placing their own life at risk, while responding to a call of a male making threats outside a local housing facility.

    Surrey RCMP Detachment

    Const. Shannon Walker – for their exceptional courage and bravery in preventing further harm to the public, while arresting an armed subject.

    Trail RCMP Detachment

    Constables Evan Harding and Jason Zilkie – for risking their lives, while responding to a suicidal and mentally ill male behaving erratically and attempting to enter the BC Ambulance station when he produced a firearm.

    Vanderhoof RCMP Detachment

    Const. Chris Brown (now retired), Const. Mackenzie Sheridan (now retired), Cpl. J.R. (Edward) Gohn, sergeants Amy Floyd and Kyle Ushock – for their bravery and courage in the face of very dangerous circumstances with an active shooter.

    Vernon North Okanagan RCMP Detachment

    Const. Jamie Kress – for their quick efforts when responding to a call involving a suicidal female.

    AWARDS OF MERITORIOUS SERVICE:

    BC Highway Patrol – Parksville

    Sgt. Robert Haney – for their selfless and courageous actions in a situation of extremely high risk, in order to protect the public and other police officers.

    Central Highway Patrol

    Const. Amber Brunner – for their selfless and courageous actions in a situation of extremely high risk, in order to protect the public and other police officers.

    Creston RCMP Detachment

    Sgt. John Edinger and Staff Sgt. Brandon Buliziuk – for their efforts in rescuing a newborn infant with life-threatening conditions.

    Combined Forces Special Enforcement Unit B.C.

    Const. Lawrence Berceanu and Staff Sgt. Rob Angco – for their dedication during a complex, multi-jurisdictional and multi-national file involving the murder of a United Nations gang member in Phuket, Thailand, that led to the arrest and successful extradition of one of the three suspects. 

    Dawson Creek RCMP Detachment

    Cpl. Daniel Cloutier – with their police service dog, for their life-saving efforts in locating an offender.

    Golden RCMP Detachment

    Const. Brandon Churchill and Const. Katherin Robinson (now retired) – for their bravery, empathy and teamwork in responding to a suicidal female.

    Constables Robyn Diddams and Christopher Kotrba – for their bravery and de-escalation tactics when responding to a suicidal individual that shot at innocent people inside their home.

    Kamloops RCMP Detachment

    Const. Jean-Francois LaPierre – for their life-saving efforts while responding to a wounded individual.

    Sgt. Joseph Morrissey – for their selfless and courageous actions in a situation of extremely high risk, in order to protect the public and other police officers.

    Midway RCMP Detachment

    Sgt. Phil Peters – for their courageous efforts in locating a wet, hypothermic individual who was trapped in a ravine by making a fire to keep them warm and alert until search-and-rescue personnel arrived.

    Mission RCMP Detachment

    Constables Rose Foik and Daylon Robinson – for going above and beyond when responding to a dirt bike accident in rural Mission.

    Penticton RCMP Detachment

    Const. Derek Ballarin – for their efforts in saving a drowning toddler in a lake, while off duty.

    Powell River RCMP Detachment

    Const. Anthony Stewart – for their dedication and hard work during the COVID-19 pandemic, mentoring other detachment members and ranking No. 2 as a drug-recognition expert (DRE), conducting 50 DRE evaluations, which is 11 times the national average.

    RCMP “E” Division Underwater Recovery Team

    Const. Marc Leblanc – for their dedication and leadership during an underwater recovery mission, setting a new benchmark for future Underwater Recovery Team operations.

    RCMP Federal and Serious Organized Crime Division

    Sgt. Nicholas De Winter – for their dedication during a complex, multi-jurisdictional and multi-national file involving the murder of a United Nations gang member in Phuket, Thailand, that led to the arrest and successful extradition of one of the three suspects. 

    RCMP Integrated Homicide Investigation Team

    Inspectors Adam Gander and Matthew Turner; Sgt. Robert Kee, Sgt. Major Heather Lew and Sgt. Mike Lim – for their unwavering dedication and commitment during the murder investigation of a 13-year-old girl that resulted in a conviction of first-degree murder.

    Reserve Const. Thomas Kurucz and Staff Sgt. Dave Derusha – for their integral efforts in solving an eight-year-old cold case.

    RCMP Pacific Region Federal Policing Program

    Corp. Janelle Canning-Lue – for their dedication during a complex, multi-jurisdictional and multi-national file involving the murder of a United Nations gang member in Phuket, Thailand, that led to the arrest and successful extradition of one of the three suspects. 

    Vancouver Police Department

    Det. Troy Timbury – for their dedication during a complex, multi-jurisdictional and multi-national file involving the murder of a United Nations gang member in Phuket, Thailand, that led to the arrest and successful extradition of one of the three suspects. 

    Vernon RCMP Detachment

    Const. Hayley Derzak and Cpl. Darcy Reeves – placed their own lives at risk when responding to a call involving a 17-year-old male threatening to commit suicide.

    Sicamous RCMP Detachment

    Sgt. Murray McNeil – for risking their own safety to rescue a woman who fell through the ice on a lake at night.

    Southeast District Emergency Response Team

    Const. Michael Dibblee – for their selfless and courageous actions in a situation of extremely high risk, to protect the public and other police officers.

    Surrey RCMP Detachment

    Staff Sgt. Mike Spencer – for their significant contribution and leadership in preparation and execution of an operational plan for the Vaisakhi parade in Surrey.

    Upper Fraser Valley Regional Detachment

    Const. Henry Smith – for putting their safety at risk when jumping into freezing water to save a suicidal person.

    Cpl. Chris Gosselin (now retired) – for building strong relationships, trust and respect with 15 Indigenous communities within their detachment area. 

    Williams Lake BC Highway Patrol

    Const. Kevin Wiebe – for their heroic work when saving a trapped driver in a single motor vehicle incident where the car was on fire. 

    MIL OSI Canada News

  • MIL-OSI: Angus Gold Announces Grant of RSU’s

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, April 24, 2025 (GLOBE NEWSWIRE) — Angus Gold Inc. (TSX-V: GUS | OTC: ANGVF) (“Angus” or the “Company”) announces that it has granted a total of 680,000 restricted share units (RSU’s) to certain directors and officers of the Company under the terms of the Company’s restricted share unit plan (the “RSU Plan”).

    In accordance with the RSU Plan, once vested, each RSU represents the right to receive one common share of the Company or the equivalent cash value thereof, at the Company’s discretion.

    The RSU’s were granted as part of 2024 year-end performance bonuses.

    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. (“Wesdome”). 

    Wesdome and Angus have entered into a definitive arrangement agreement whereby Wesdome will acquire all of the issued and outstanding common shares of Angus pursuant to a plan of arrangement (the “Arrangement”). For further information see the press release of the Company dated April 7, 2025.

    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, in general, the Company’s objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: the ability to satisfy the conditions of closing for the Arrangement including the necessary shareholder and court approvals, and otherwise complete the Arrangement on the terms as announced or at all; 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.

    The MIL Network

  • MIL-OSI USA: Senator Murray Hears from Mayors and Business Leaders About How Trump’s Trade War is Hurting Border Communities in Northwest Washington

    US Senate News:

    Source: United States Senator for Washington State Patty Murray

    Canada is Washington’s largest overall trading partner, accounting for nearly $20 billion in imports and $10 billion in exports

    ***AUDIO of full roundtable discussion HERE***

    ***PHOTOS and B-ROLL HERE***

    Blaine, WA — Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, held a roundtable discussion on how Trump’s chaotic trade war and senseless tariffs are affecting Washington state’s border communities and local businesses. In the City of Blaine, which is located along the United States-Canada border, retail and service revenue has fallen 40 percent, and the City of Bellingham and other communities near the border are reporting a roughly 20 percent decrease in revenue due to Trump’s trade war and increasing anti-American sentiment from Canadian neighbors.

    Canada is Washington’s largest overall trading partner, accounting for nearly $20 billion in imports and $10 billion in exports. Senator Murray was joined for the discussion by Blaine Mayor Mary Lou Steward; Surrey (Canada) Mayor Brenda Locke; Blaine City Manager Mike Harmon; Dr. Laurie Trautman, Director of the Border Policy Research Institute; and Ali Hayton, Owner of Point Roberts Marketplace.

    On April 2nd, President Trump announced sweeping new tariffs on nearly every country, including a 10 percent baseline tariff on all imported goods, and country-specific so-called reciprocal tariffs. Just hours after the reciprocal tariff rates took effect last Wednesday, Trump abruptly changed his mind and put a 90-day pause on reciprocal tariffs. But Trump is still taxing goods from every country, across the board, at 10 percent at least. Even with his “pause,” Trump’s new tariff rates are still the highest in decades, and are estimated to cost American families more than $4,000 per year—the largest tax increase since 1968.

    “As everyone here knows, the folks just across the border in Canada are not just our neighbors—they are our friends, and some families even span the border. It’s not just personal connections that are strong here, but economic connections. Trade with Canada, and visitors and customers are a crucial part of the local economy,” said Senator Murray. “Yet, every week Trump seems to find a new way to drive a wedge between us and our Canadian allies, and a new way to drive business away from our communities. He’s whipping up a fact-free frenzy about drugs at the Canadian border. The fact is: less than 1 percent of fentanyl intercepted at the U.S. border is from Canada. He has created complete chaos and fear for every day travelers crossing our border. People coming here for work, or just for visits, have been detained. His border theatrics are scaring away tourists and scaring off business. And the pointless, painful trade war is in reality an enormous tax paid by our families.”

    “Trump is pushing away some of our most important trade partners, raising prices for families at the grocery store, and pushing small businesses to the brink—some may even shutter. All of this is incredibly harmful to our communities—it’s not the way we should treat our neighbors, and it’s catastrophic for business too,” Senator Murray continued. “I’m glad to be here to shine a spotlight the real damage Trump is doing with his tariffs, his chaos, and his attempts to bully one of our closest allies for no reason—and to listen to your stories and take them back with me to the other Washington.”

    Washington state has one of the most trade-dependent economies of any state in the country, with 40 percent of jobs tied to international commerce. Washington state is the top U.S. producer of apples, blueberries, hops, pears, spearmint oil, and sweet cherries—all of which risk losing vital export markets due to retaliatory tariffs from key trading partners including Canada. Additionally, more than 12,000 small and medium-sized companies in Washington state export goods and will struggle to absorb the impact of retaliatory tariffs. Trump’s tariffs during his first term were extremely costly for Washington state—for example, India imposed a 20 percent retaliatory tariff on U.S. apples, causing Washington apple shipments to India to fall by 99 percent and growers to lose hundreds of millions of dollars in exports.

    “We really, really depend upon Canadians coming to shop in Blaine. And part of this just is our history… We do have small businesses in town that we like to support, and over the years, the Canadians have come down and supported these immensely, in particular the gas, dairy, and shopping—Amazon parcels that are mail orders. These are all suffering. People are being laid off, and this is hurting us because the Canadian southbound traffic has dropped off to 50 percent of a decrease in the amount of traffic, so this does affect our businesses,” said Mary Lou Steward, Mayor of Blaine. “Sales tax receipts eclipse property tax receipts nearly by two to one, so sales tax is really, really important. And it takes all of Blaine’s property tax plus sales tax receipts to fund our police department… Blaine and Bellingham receive nearly the same number of Canadian visitors, however, those going to Bellingham shop and spend four to one times as much money in Bellingham as they do coming to Blaine to buy gas and eat locally.”

    “Much like during the pandemic, our border communities are being impacted disproportionately, only this time by the antagonistic approach of the Trump Administration towards Canada. These impacts are far reaching and go well beyond the immediate economic damage our communities face, affecting our social connections, and our ability to respond to natural disasters that know no borders,” said Dr. Laurie Trautman, Director of the Border Policy Research Institute. “Cross-border connections with our Canadian neighbors provide immeasurable benefits to our community- supporting our economy and our security. Travel by Canadians has dropped by over 50%, largely due to the antagonism of the Trump Administration, leaving our businesses more vulnerable and our community less secure.”

    “Senator Murray has long stood with Point Roberts, championing our unique needs during the COVID-19 pandemic, when border closures devastated our local economy and isolated our community. Her tireless efforts helped bring much-needed attention to our situation during that crisis, and her commitment remains strong today as we face new challenges brought on by international tariff disputes. Businesses in Point Roberts are struggling to navigate the uncertainty created by these trade tensions. When I reached out to Senator Murray’s office for help, their response was immediate. While it’s unclear exactly what relief might come for Point Roberts and other border towns, today’s meeting — bringing together community leaders from both sides of the border — is a hopeful step forward in rebuilding the longstanding relationships we’ve shared with our Canadian neighbors,” said Ali Hayton, Owner of Point Roberts Marketplace. “We may not yet know what the future holds, but having Senator Murray in our corner makes all the difference. Her leadership, compassion, and steadfast commitment to the people of Point Roberts are deeply appreciated.”

    Senator Murray has been a vocal opponent of Trump’s chaotic trade war and has been lifting up the voices of people in Washington state harmed by this administration’s approach to trade. Senator Murray continues to call on Republicans to end Trump’s trade war—which Congress has the power to do—and take back Congress’ Constitutionally-granted power to impose tariffs. Earlier this month, Senator Murray brought together leaders across Washington state who highlighted how Trump’s ongoing trade war is already a devastating hit to Washington state’s economy, businesses, and our agriculture sector. Senator Murray also took to the Senate floor to lay out how Trump’s chaotic trade war is seriously threatening our economy, American businesses, families’ retirement savings, and so much else. Earlier this week, Senator Murray joined her colleagues in pressing U.S. Trade Representative Ambassador Jamieson Greer on how the Trump administration’s tariffs are affecting farmers across the country. Last week, Senator Murray also held a roundtable discussion in Tacoma with local businesses and ports, toured local businesses in downtown Vancouver, and held a roundtable discussion in Vancouver with local businesses and ports, to highlight how Trump’s chaotic trade war and senseless tariffs are harming the overall economy in Washington state. Earlier this week, Senator Murray met with small business owners in Seattle’s University District to hear how Trump’s tariffs and trade war are harming them.

    MIL OSI USA News

  • MIL-OSI: Parker Increases Quarterly Cash Dividend 10% to $1.80 per Share

    Source: GlobeNewswire (MIL-OSI)

    CLEVELAND, April 24, 2025 (GLOBE NEWSWIRE) — Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that its Board of Directors has declared a quarterly cash dividend of $1.80 per share of common stock to shareholders of record as of May 9, 2025. The dividend is payable June 6, 2025. The dividend represents a 10% increase over the previous quarterly cash dividend of $1.63 per common share and will be the 300th consecutive quarterly dividend paid by the company.

    “This dividend increase reflects the Board’s confidence in our financial position and continued ability to generate strong cash flows through the business cycle,” said Jenny Parmentier, Chairman and Chief Executive Officer. “Our performance and strong balance sheet give us the flexibility to strategically deploy capital to create shareholder value, including increasing our annual per share dividend record to 69 fiscal years.”

    Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 69 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. Learn more at www.parker.com or @parkerhannifin.

    Forward-Looking Statements

    Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.

    Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and other periodic filings made with the SEC.

    ###

    The MIL Network

  • MIL-OSI Global: It’s World Immunization Week. How prepared is Canada if vaccines are needed for a new pandemic?

    Source: The Conversation – Canada – By Kelley Lee, Professor and Tier 1 Canada Research Chair in Global Health Governance; Scientific Co-Director, Bridge Research Consortium, Simon Fraser University

    With the global resurgence of many vaccine-preventable diseases, World Immunization Week (April 24-30) provides a timely opportunity for Canadians to reflect on the goal of “Immunization for All.”

    The World Health Organization (WHO) raises awareness each year of the importance of equitable access to lifesaving and health-protecting vaccines. More than 154 million lives worldwide over the past 50 years have been saved by vaccines, excluding vaccines for COVID-19, malaria, influenza, human papilloma virus, and other deadly diseases.

    Immunization programs underpin 14 of the 17 United Nations Sustainable Development Goals. The global eradication of smallpox, 99 per cent reduction of wild polio cases since 1988, and 40 per cent reduction in infant mortality are why vaccines are celebrated among public health’s greatest achievements

    Continued benefits from vaccines under threat in Canada

    Supported by a universal health-care system, strong public health infrastructure, and publicly funded programs, Canada has enjoyed a century of decline in diseases such as measles, diphtheria and pertussis thanks to vaccines.

    Recent trends, however, are cause for concern. A decline in vaccine confidence, worsening since the COVID-19 pandemic, challenges of access and the inclusion of vaccines in partisan political rhetoric have led to reduced vaccine uptake.

    In 2024, 17 per cent of Canadian parents were “really against” vaccinating their children, up from four per cent in 2019. The measles outbreak in Ontario, with more than 800 cases and 61 hospitalizations, are real consequences of these choices. The Council of Canadian Academies estimated that COVID-19 misinformation cost Canada more than 2,800 lives and $300 million in additional health-care and economic losses.

    Vaccines for future pandemics

    The spectre of a new pandemic looms with the spread of highly pathogenic avian influenza (H5N1). In the United States, infections in dairy cattle and on poultry farms continue.

    With vaccination likely playing a critical role in any public health response, the dismantling of parts of the American public health infrastructure, defunding of vaccine research and ramping up of political rhetoric against vaccines is highly concerning. The United States’s withdrawal from global health, including the termination of funding to GAVI, the Vaccine Alliance and WHO, is likely to profoundly harm global immunization programs and pandemic preparedness.

    Canada must take stock of this changing landscape. Chief Public Health Officer Theresa Tam’s 2024 report, Realizing the Future of Vaccination for Public Health, sets out a clear framework for realizing the full potential of vaccination in Canada.
    In addition to major investments in new vaccine development and biomanufacturing in Canada, this public health framework is designed to support a better co-ordinated national immunization system, concerted efforts to address public trust, and efforts to improve equitable access.

    Need for a national immunization registry

    The lack of integration of Canada’s fragmented immunization data across provinces and territories makes it more challenging to plan vaccine rollouts, identify coverage gaps or rapidly track adverse events after immunization. The Canadian Public Health Association and others have long called for a comprehensive and harmonized immunization registry as essential for a modern and responsive system.

    A national framework for vaccine data collection would allow policymakers and practitioners to make evidence-informed decisions in real time.

    Supporting public trust

    Sustaining high vaccination coverage begins with public trust in science, government and public health. While most people still trust science and scientists, what constitutes trustworthy sources of information has become a serious problem.

    Insufficient transparency around vaccine development, regulation and monitoring of adverse reactions needs addressing. Concerns about the rapid pace of scientific advances, including the 100-days mission to produce an effective vaccine for a future pandemic, must be recognized.

    With so many new vaccines expected to roll out in coming years, including new frontiers in neurodegenerative disorders and vaccines for certain cancers, a harmonized vaccine schedule would foster public trust. In this context, vaccine misinformation has become a serious problem.

    Centring equitable access and design

    The COVID-19 pandemic showed how structural inequalities reduced the ability to access vaccines.

    Initiatives during the pandemic to support equitable access — such as mobile clinics, culturally appropriate information and community-led initiatives — increased uptake. These approaches need to be extended to routine vaccination.

    Moreover, building supportive environments means incorporating an “equity by design” approach, which applies regulatory tools and systems design to support vaccine equity, from discovery to rollout means that the ability to keep vaccines refridgerated cold chains or needle delivery, for example, do not contribute to disparities of access.

    Bridge Research Consortium

    The Bridge Research Consortium (BRC) is a multidisciplinary team of social scientists and humanities scholars established in 2024 to understand the social and behavioural factors that influence new vaccine uptake in Canada.

    Bridging understandings across the “pipeline” for developing new vaccines and therapeutics, and the public health system, the BRC supports tailored and equity-informed strategies that enhance public trust and equitable access. We will hear directly from communities across the country, identify concerns in real-time, and co-develop approaches that reflect diverse perspectives. We plan to achieve this through demystifying how vaccines are developed and produced, holding deliberative dialogues that bring together diverse perspectives on challenging topics, and creating a travelling science exhibit. World Immunization Week is a timely reminder of the importance of this work to enable Canada to realize the potential benefits of vaccines.

    Immunity and Society is a new series from The Conversation Canada that presents new vaccine discoveries and immune-based innovations that are changing how we understand and protect human health. Through a partnership with the Bridge Research Consortium, these articles — written by academics in Canada at the forefront of immunology and biomanufacturing — explore the latest developments and their social impacts.

    Kelley Lee receives funding from the Canada’s Biomedical Research Fund, Canada Foundation for Innovation, and British Columbia Knowledge Development Fund to support the work of the Bridge Research Consortium. The BRC is one of 19 projects funded to support Canada’s Biomanufacturing and Life Sciences Strategy. She also receives funding from the Canadian Institutes of Health Research and New Frontiers in Research Fund to conduct research on pandemic preparedness and response. She currently serves as a Commissioner on the National University of Singapore-The Lancet Pandemic Readiness, Implementation, Monitoring and Evaluation (PRIME) Commission.

    Ève Dubé receives funding from the Canada’s Biomedical Research Fund, Canada Foundation for Innovation, to support the work of the Bridge Research Consortium. The BRC is one of 19 projects funded to support Canada’s Biomanufacturing and Life Sciences Strategy. She also receives funding from the Canadian Institutes of Health Research and the Fonds de recherche du Québec to conduct research on vaccine acceptance.

    Janice E. Graham receives funding from CIHR and PHAC.

    Noni MacDonald receives funding from CIHR, CIRN grants related to immunization as well as PHAC and CPHA consultation fees related to immunization. She is a member of the Canadian Paediatric Society and the International Pediatric Society, a donor to Canadian Public Health Association and WHO, and on board of the journal Vaccine.

    ref. It’s World Immunization Week. How prepared is Canada if vaccines are needed for a new pandemic? – https://theconversation.com/its-world-immunization-week-how-prepared-is-canada-if-vaccines-are-needed-for-a-new-pandemic-254186

    MIL OSI – Global Reports

  • MIL-OSI: MidWestOne Financial Group, Inc. Reports Financial Results For the First Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    IOWA CITY, Iowa, April 24, 2025 (GLOBE NEWSWIRE) — MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we,” “our,” or the “Company”) today reported results for the first quarter of 2025.

    First Quarter 2025 Summary1

    • Net income of $15.1 million, or $0.73 per diluted common share.
      • Net interest margin (tax equivalent) was 3.44%;2 core net interest margin expanded 10 basis points (“bps”) to 3.36%.2
      • Noninterest expenses were $36.3 million; efficiency ratio was 59.38%.2
      • Return on average assets of 1.00%.
    • Criticized loans ratio improved 54 bps to 5.47%; nonperforming assets ratio improved 7 bps to 0.33%.
    • Tangible book value per share of $23.36,2 an increase of 4.4%.
    • Common equity tier 1 (“CET1”) capital ratio improved 24 bps to 10.97%.

    CEO Commentary

    Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “We are pleased with the continued execution of our strategic plan initiatives despite a more uncertain economic environment. Our return on average assets eclipsed 1% for the second straight quarter driven by disciplined balance sheet management, core net interest margin expansion of 10 bps2 and solid expense control. Loan growth was flat in the quarter, somewhat softer than anticipated, due to pay-offs and latter quarter market volatility. The majority of our asset quality metrics improved significantly, led by reductions in nonperforming assets and criticized loans. Net charge-offs increased to 29 basis points, with the majority of the increase due to a partial charge-off on a previously reserved CRE loan as we prepare for resolution. Driven by earnings and lower accumulated other comprehensive loss, tangible book value per share increased 4.4% to $23.362 and the CET1 ratio grew to 10.97%, edging closer to our target range of 11.0%-11.50%.

    Thank you to our team members who continued to execute well and serve our customers amidst market volatility. We are pleased with the transformation of our company and our solid foundation of increased capital, earnings power, asset quality, and a premium core deposit franchise position us well for uncertain economic times and the remainder of 2025.”

    1 First Quarter Summary compares to the fourth quarter of 2024 (the “linked quarter”) unless noted.
    2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

        As of or for the quarter ended
    (Dollars in thousands, except per share amounts and as noted)   March 31,   December 31,   March 31,
        2025       2024       2024  
    Financial Results            
    Revenue   $ 57,575     $ 59,775     $ 44,481  
    Credit loss expense     1,687       1,291       4,689  
    Noninterest expense     36,293       37,372       35,565  
    Net income     15,138       16,330       3,269  
    Adjusted earnings(3)     15,301       16,112       4,504  
    Per Common Share            
    Diluted earnings per share   $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings per share(3)     0.73       0.77       0.29  
    Book value     27.85       26.94       33.53  
    Tangible book value(3)     23.36       22.37       27.14  
    Balance Sheet & Credit Quality            
    Loans In millions   $ 4,304.2     $ 4,315.6     $ 4,414.6  
    Investment securities In millions     1,305.5       1,328.4       1,862.2  
    Deposits In millions     5,489.1       5,478.0       5,585.2  
    Net loan charge-offs In millions     3.1       0.7       0.2  
    Allowance for credit losses ratio     1.25 %     1.28 %     1.27 %
    Selected Ratios            
    Return on average assets     1.00 %     1.03 %     0.20 %
    Net interest margin, tax equivalent(3)     3.44 %     3.43 %     2.33 %
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(3)     13.75 %     14.80 %     4.18 %
    Efficiency ratio(3)     59.38 %     59.06 %     71.28 %
                             

    REVENUE REVIEW

    Revenue               Change   Change
                  1Q25 vs   1Q25 vs
    (Dollars in thousands)   1Q25   4Q24   1Q24   4Q24   1Q24
    Net interest income   $           47,439   $         48,938   $        34,731   (3)%   37 %
    Noninterest income                 10,136               10,837                9,750   (6)%   4 %
    Total revenue, net of interest expense   $           57,575   $         59,775   $        44,481   (4)%   29 %
                                 

    Total revenue for the first quarter of 2025 decreased $2.2 million from the fourth quarter of 2024 due to lower net interest income and noninterest income during the quarter. When compared to the first quarter of 2024, total revenue increased $13.1 million, due to higher net interest income and higher noninterest income.

    Net interest income of $47.4 million for the first quarter of 2025 decreased $1.5 million from the fourth quarter of 2024, due to lower earning asset volumes and yields, partially offset by lower funding volumes and costs. When compared to the first quarter of 2024, net interest income increased $12.7 million, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 3.43%3 in the fourth quarter of 2024, driven by lower funding costs, partially offset by a decline in earning asset yields. Interest bearing liability costs during the first quarter of 2025 decreased 11 bps to 2.41%, due to reductions of short-term borrowings, interest bearing deposits, and long-term debt costs of 78 bps, 10 bps, and 7 bps, to 3.75%, 2.31%, and 6.41%, respectively, from the fourth quarter of 2024.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 2.33%3 in the first quarter of 2024, driven by higher earning asset yields and lower interest-bearing liability costs. Total earning assets yield increased 79 bps from the first quarter of 2024, primarily due to increases of 192 bps and 20 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 34 bps to 2.41%, due to short-term borrowing costs of 3.75%, long-term debt costs of 6.41%, and interest-bearing deposit costs of 2.31%, which decreased 107 bps, 45 bps, and 14 bps, respectively, from the first quarter of 2024.

    3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

    Noninterest Income             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Investment services and trust activities $ 3,544     $ 3,779   $ 3,503     (6)%   1 %
    Service charges and fees   2,131       2,159     2,144     (1)%   (1)%
    Card revenue   1,744       1,833     1,943     (5)%   (10)%
    Loan revenue   1,194       1,841     856     (35)%   39 %
    Bank-owned life insurance   1,057       719     660     47 %   60 %
    Investment securities gains, net   33       161     36     (80)%   (8)%
    Other   433       345     608     26 %   (29)%
    Total noninterest income $ 10,136     $ 10,837   $ 9,750     (6)%   4 %
                       
    MSR adjustment (included above in Loan revenue) $ (213 )   $ 164   $ (368 )   (230)%   (42)%
                                 

    Noninterest income for the first quarter of 2025 decreased $0.7 million from the linked quarter, primarily due to declines of $0.6 million and $0.2 million in loan revenue and investment services and trust activities revenue, respectively. The decrease in loan revenue was reflective of an unfavorable change in the fair value of our mortgage servicing rights of $0.4 million, coupled with a decrease in Small Business Administration (“SBA”) gain on sale revenue of $0.3 million. The decrease in investment services and trust activities revenue was driven by a decline in assets under administration due to market volatility. Partially offsetting these decreases was an increase of $0.3 million in bank-owned life insurance revenue, due primarily to $0.4 million of death benefit recognized in the first quarter of 2025.

    Noninterest income for the first quarter of 2025 increased $0.4 million from the first quarter of 2024 due primarily to increases of $0.4 million and $0.3 million in bank-owned life insurance and loan revenue, respectively. The bank-owned life insurance increase was due primarily to the death benefit noted above. The increase in loan revenue was due primarily to the mortgage servicing right valuation adjustment, coupled with higher SBA gain on sale revenue and other loan income. Partially offsetting these increases were decreases of $0.2 million in each of card revenue and other revenue.

    EXPENSE REVIEW

    Noninterest Expense             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Compensation and employee benefits $ 21,212   $ 20,684   $ 20,930   3 %   1 %
    Occupancy expense of premises, net   2,588     2,772     2,813   (7)%   (8)%
    Equipment   2,426     2,688     2,600   (10)%   (7)%
    Legal and professional   2,226     2,534     2,059   (12)%   8 %
    Data processing   1,698     1,719     1,360   (1)%   25 %
    Marketing   552     793     598   (30)%   (8)%
    Amortization of intangibles   1,408     1,449     1,637   (3)%   (14)%
    FDIC insurance   917     980     942   (6)%   (3)%
    Communications   159     154     196   3 %   (19)%
    Foreclosed assets, net   74     56     358   32 %   (79)%
    Other   3,033     3,543     2,072   (14)%   46 %
         Total noninterest expense $ 36,293   $ 37,372   $ 35,565   (3)%   2 %
                               
    Merger-related Expenses          
             
    (In thousands) 1Q25   4Q24   1Q24
    Compensation and employee benefits $                 —   $                 —   $               241
    Occupancy expense of premises, net                     —                       —                     152
    Equipment                     —                       21                     149
    Legal and professional                     40                       —                     573
    Data processing                     —                       10                       61
    Marketing                     —                       —                       32
    Communications                     —                       —                         1
    Other                     —                       —                     105
    Total merger-related expenses $                 40   $                 31   $            1,314
                     

    Noninterest expense for the first quarter of 2025 decreased $1.1 million from the linked quarter, primarily due to decreases in other noninterest expense, legal and professional, equipment, and occupancy expense of premises, net, of $0.5 million, $0.3 million, $0.3 million, and $0.2 million, respectively. The primary drivers of the decrease in other noninterest expense were declines in fraud loss expense of $0.3 million and customer deposit costs of $0.1 million. The $0.3 million decrease in legal and professional expense was primarily driven by lower litigation-related legal costs. The decrease in equipment of $0.3 million was primarily driven by fewer small equipment purchases, while the decrease in occupancy expense of premises, net was due primarily to lower property tax expense. Partially offsetting these decreases was an increase of $0.5 million in compensation and employee benefits which reflected an increase in equity compensation and payroll tax expenses.

    Noninterest expense for the first quarter of 2025 increased $0.7 million from the first quarter of 2024 primarily due to increases in other noninterest expense, data processing, and compensation and employee benefits of $1.0 million, $0.3 million and $0.3 million, respectively. The increase in other noninterest expense was due primarily to customer deposit costs while the increase in data processing was driven core banking system costs. The increase in compensation and employee benefits was primarily driven by medical benefits expenses, wages expense, and incentive expense due to improved performance. Partially offsetting these identified increases was a decline of $1.3 million in merger-related expenses.

    The Company’s effective tax rate was 22.7% in the first quarter of 2025 and the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.

    BALANCE SHEET REVIEW

    Total assets were $6.25 billion at March 31, 2025, compared to $6.24 billion at December 31, 2024 and $6.75 billion at March 31, 2024. The increase from December 31, 2024 was primarily due to higher cash balances, partially offset by lower securities balances. Compared to March 31, 2024, the decrease was primarily driven by the sale of assets associated with our Florida banking operations in the second quarter of 2024 coupled with the pay-off of Bank Term Funding Program (“BTFP”) borrowings with proceeds received from securities sales transactions in the fourth quarter of 2024.

    Loans Held for Investment March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Commercial and industrial $1,140,138   26.5 % $1,126,813   26.1 % $1,105,718   25.0 %
    Agricultural 131,409   3.1   119,051   2.8   113,029   2.6  
    Commercial real estate                        
    Construction and development 293,280   6.8   324,896   7.5   403,571   9.1  
    Farmland 180,633   4.2   182,460   4.2   184,109   4.2  
    Multifamily 421,204   9.8   423,157   9.8   409,504   9.3  
    Other 1,425,062   33.0   1,414,168   32.7   1,440,645   32.7  
    Total commercial real estate 2,320,179   53.8   2,344,681   54.2   2,437,829   55.3  
    Residential real estate                        
    One-to-four family first liens 471,688   11.0   477,150   11.1   495,408   11.2  
    One-to-four family junior liens 182,346   4.2   179,232   4.2   182,001   4.1  
    Total residential real estate 654,034   15.2   656,382   15.3   677,409   15.3  
    Consumer 58,424   1.4   68,700   1.6   80,661   1.8  
    Loans held for investment, net of unearned income $4,304,184   100.0 % $4,315,627   100.0 % $4,414,646   100.0 %
                             
    Total commitments to extend credit $1,080,300       $1,080,737       $1,230,612      

    Loans held for investment, net of unearned income, decreased $11.4 million, or 0.3%, to $4.30 billion from $4.32 billion at December 31, 2024, primarily due to the reclassification of $11.0 million of credit card receivables to loans held for sale in the first quarter of 2025. Management expects the credit card portfolio sale to close in the fourth quarter of 2025.

    Loans held for investment, net of unearned income, decreased $110.5 million, or 2.5%, to $4.30 billion from $4.41 billion at March 31, 2024. The decrease from the first quarter of 2024 was driven primarily by the sale of loans associated with our Florida banking operations in the second quarter of 2024, partially offset by organic loan growth and higher line of credit usage.

    Investment Securities March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Available for sale $1,305,530   100.0 % $1,328,433   100.0 % $797,230   42.8 %
    Held to maturity   %   % 1,064,939   57.2 %
    Total investment securities $1,305,530       $1,328,433       $1,862,169      

    Investment securities at March 31, 2025 were $1.31 billion, decreasing $22.9 million from December 31, 2024 and decreasing $556.6 million from March 31, 2024. The decrease from the fourth quarter of 2024 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the first quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities. 

    Deposits March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Noninterest bearing deposits $903,714   16.5 % $951,423   17.4 % $920,764   16.5 %
    Interest checking deposits 1,283,328   23.3   1,258,191   22.9   1,349,823   24.2  
    Money market deposits 1,002,066   18.3   1,053,988   19.2   1,122,717   20.1  
    Savings deposits 877,348   16.0   820,549   15.0   728,276   13.0  
    Time deposits of $250 and under 818,012   14.9   826,793   15.1   787,851   14.1  
    Total core deposits 4,884,468   89.0   4,910,944   89.6   4,909,431   87.9  
    Brokered time deposits 200,000   3.6   200,000   3.7   205,000   3.7  
    Time deposits over $250 404,674   7.4   367,038   6.7   470,805   8.4  
    Total deposits $5,489,142   100.0 % $5,477,982   100.0 % $5,585,236   100.0 %

    Total deposits increased $11.2 million, or 0.2%, to $5.49 billion, from $5.48 billion at December 31, 2024. Total deposits decreased $96.1 million, or 1.7%, from $5.59 billion at March 31, 2024, primarily due to the deposits transferred in the sale of our Florida banking operations, partially offset by organic deposit growth in our targeted metropolitan markets.

    Borrowed Funds March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Short-term borrowings $1,482   1.3 % $3,186   2.7 % $422,988   77.6 %
    Long-term debt 111,398   98.7 % 113,376   97.3 % 122,066   22.4 %
    Total borrowed funds $112,880       $116,562       $545,054      

    Borrowed funds were $112.9 million at March 31, 2025, a decrease of $3.7 million from December 31, 2024 and a decrease of $432.2 million from March 31, 2024. The decrease compared to the linked quarter was due to lower customer repurchase agreement volumes and scheduled payments on long-term debt. The decrease compared to March 31, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and $13.0 million of a revolving credit facility, as well as scheduled payments on long-term debt.

    Capital March 31,   December 31,   March 31,
    (Dollars in thousands) 2025 (1)     2024       2024  
    Total shareholders’ equity $ 579,625     $ 559,696     $ 528,040  
    Accumulated other comprehensive loss   (63,098 )     (72,762 )     (60,804 )
    MidWestOneFinancial Group, Inc. Consolidated          
    Tier 1 leverage to average assets ratio   9.50 %     9.15 %     8.16 %
    Common equity tier 1 capital to risk-weighted assets ratio   10.97 %     10.73 %     8.98 %
    Tier 1 capital to risk-weighted assets ratio   11.84 %     11.59 %     9.75 %
    Total capital to risk-weighted assets ratio   14.34 %     14.07 %     11.97 %
    MidWestOneBank          
    Tier 1 leverage to average assets ratio   10.42 %     10.12 %     9.36 %
    Common equity tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Total capital to risk-weighted assets ratio   14.21 %     14.02 %     12.25 %
    (1) Regulatory capital ratios for March 31, 2025 are preliminary          
               

    Total shareholders’ equity at March 31, 2025 increased $19.9 million from December 31, 2024, driven primarily by an increase in retained earnings and a decrease in accumulated other comprehensive loss. Total shareholders’ equity at March 31, 2025 increased $51.6 million from March 31, 2024, primarily due to increases in common stock and additional pain-in-capital stemming from the common equity capital raise in the third quarter of 2024, partially offset by a decrease in retained earnings.

    On April 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable June 16, 2025, to shareholders of record at the close of business on June 2, 2025.

    No common shares were repurchased by the Company during the period December 31, 2024 through March 31, 2025 or for the subsequent period through April 24, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company’s common shares. As of March 31, 2025, $15.0 million remained available under this program.

    CREDIT QUALITY REVIEW

    Credit Quality As of or For the Three Months Ended
    March 31,   December 31,   March 31,
    (Dollars in thousands)   2025       2024       2024  
    Credit loss expense related to loans $ 1,787     $ 1,891     $ 4,589  
    Net charge-offs   3,087       691       189  
    Allowance for credit losses   53,900       55,200       55,900  
    Pass $ 4,068,707     $ 4,056,361     $ 4,098,102  
    Special Mention   121,494       148,462       152,604  
    Classified   113,983       110,804       163,940  
    Criticized   235,477       259,266       316,544  
    Loans greater than 30 days past due and accruing $ 6,119     $ 9,378     $ 8,772  
    Nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming assets   20,889       25,184       33,164  
    Net charge-off ratio(1)   0.29 %     0.06 %     0.02 %
    Classified loans ratio(2)   2.65 %     2.57 %     3.71 %
    Criticized loans ratio(3)   5.47 %     6.01 %     7.17 %
    Nonperforming loans ratio(4)   0.41 %     0.51 %     0.66 %
    Nonperforming assets ratio(5)   0.33 %     0.40 %     0.49 %
    Allowance for credit losses ratio(6)   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual loans ratio(7)   309.47 %     254.32 %     197.53 %
    (1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
    (2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
    (3) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
    (4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
    (5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
    (6) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
    (7) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.
     

    Nonperforming loans and nonperforming assets ratios improved 10 bps and 7 bps, to 0.41% and 0.33%, respectively, compared to the linked quarter. In addition, special mention loan balances decreased $27.0 million, or 18%, while classified loan balances remained relatively stable with an increase of $3.2 million, or 3%. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios improved 25 bps and 16 bps, respectively, while the classified loan ratio improved 106 bps. Special mention loan balances decreased $31.1 million, or 20%. The net charge-off ratio increased 23 bps from the linked quarter and 27 bps from the same period in the prior year.

    As of March 31, 2025, the allowance for credit losses was $53.9 million and the allowance for credit losses ratio was 1.25%, compared with $55.2 million and 1.28%, respectively, at December 31, 2024. Credit loss expense of $1.7 million in the first quarter of 2025 primarily reflected additional reserve on pooled loans, offset by a reduction of $0.1 million in the reserve for unfunded loan commitments.

    Nonperforming Loans Roll Forward Nonaccrual   90+ Days Past Due
    & Still Accruing
      Total
    (Dollars in thousands)    
    Balance at December 31, 2024 $21,705   $142   $21,847
    Loans placed on nonaccrual or 90+ days past due & still accruing 3,121   225   3,346
    Proceeds related to repayment or sale (4,158)     (4,158)
    Loans returned to accrual status or no longer past due (336)   (49)   (385)
    Charge-offs (2,774)   (259)   (3,033)
    Transfers to foreclosed assets (141)     (141)
    Transfer to nonaccrual   (6)   (6)
    Balance at March 31, 2025 $17,417   $53   $17,470


    CONFERENCE CALL DETAILS

    The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=29396e9f&confId=80376. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 527448 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until July 24, 2025 by calling 1-866-813-9403 and using the replay access code of 162684. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

    ABOUT MIDWESTONE FINANCIAL GROUP, INC.

    MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

    Cautionary Note Regarding Forward-Looking Statements

    This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

    Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (20) changes in the business and economic conditions generally and in the financial services industry, and the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; (21) the occurrence of fraudulent activity, breaches, or failures of our or our third party vendors’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED BALANCE SHEETS

      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)   2025       2024       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $            68,545     $            71,803     $            72,173     $            66,228     $            68,430  
    Interest earning deposits in banks              182,360                  133,092                  129,695                    35,340                    29,328  
    Federal funds sold                       —                           —                           —                           —                            4  
    Total cash and cash equivalents              250,905                  204,895                  201,868                  101,568                    97,762  
    Debt securities available for sale at fair value           1,305,530               1,328,433               1,623,104                  771,034                  797,230  
    Held to maturity securities at amortized cost                       —                           —                           —               1,053,080               1,064,939  
    Total securities           1,305,530               1,328,433               1,623,104               1,824,114               1,862,169  
    Loans held for sale                13,836                         749                      3,283                      2,850                      2,329  
    Gross loans held for investment           4,315,546               4,328,413               4,344,559               4,304,619               4,433,258  
    Unearned income, net              (11,362 )                (12,786 )                (15,803 )                (17,387 )                (18,612 )
    Loans held for investment, net of unearned income           4,304,184               4,315,627               4,328,756               4,287,232               4,414,646  
    Allowance for credit losses              (53,900 )                (55,200 )                (54,000 )                (53,900 )                (55,900 )
    Total loans held for investment, net           4,250,284               4,260,427               4,274,756               4,233,332               4,358,746  
    Premises and equipment, net                90,031                    90,851                    90,750                    91,793                    95,986  
    Goodwill                69,788                    69,788                    69,788                    69,388                    71,118  
    Other intangible assets, net                23,611                    25,019                    26,469                    27,939                    29,531  
    Foreclosed assets, net                  3,419                      3,337                      3,583                      6,053                      3,897  
    Other assets              246,990                  252,830                  258,881                  224,621                  226,477  
    Total assets $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
    LIABILITIES                       
    Noninterest bearing deposits $          903,714     $          951,423     $          917,715     $          882,472     $          920,764  
    Interest bearing deposits           4,585,428               4,526,559               4,451,012               4,529,947               4,664,472  
    Total deposits           5,489,142               5,477,982               5,368,727               5,412,419               5,585,236  
    Short-term borrowings                  1,482                      3,186                  410,630                  414,684                  422,988  
    Long-term debt              111,398                  113,376                  115,051                  114,839                  122,066  
    Other liabilities                72,747                    82,089                    95,836                    96,430                    89,685  
    Total liabilities           5,674,769               5,676,633               5,990,244               6,038,372               6,219,975  
    SHAREHOLDERS’ EQUITY                       
    Common stock                21,580                    21,580                    21,580                    16,581                    16,581  
    Additional paid-in capital              414,258                  414,987                  414,965                  300,831                  300,845  
    Retained earnings              227,790                  217,776                  206,490                  306,030                  294,066  
    Treasury stock              (20,905 )                (21,885 )                (21,955 )                (22,021 )                (22,648 )
    Accumulated other comprehensive loss              (63,098 )                (72,762 )                (58,842 )                (58,135 )                (60,804 )
    Total shareholders’ equity              579,625                  559,696                  562,238                  543,286                  528,040  
    Total liabilities and shareholders’ equity $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
                                           

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

      Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except per share data)   2025     2024     2024       2024     2024
    Interest income                  
    Loans, including fees $            59,462   $            62,458   $            62,521     $            61,643   $            57,947
    Taxable investment securities                13,327                  11,320                   8,779                     9,228                   9,460
    Tax-exempt investment securities                    703                      728                   1,611                     1,663                   1,710
    Other                 1,247                   3,761                      785                        242                      418
    Total interest income                74,739                  78,267                  73,696                    72,776                  69,535
    Interest expense                  
    Deposits                25,484                  27,324                  29,117                    28,942                  27,726
    Short-term borrowings                      25                      115                   5,043                     5,409                   4,975
    Long-term debt                 1,791                   1,890                   2,015                     2,078                   2,103
    Total interest expense                27,300                  29,329                  36,175                    36,429                  34,804
    Net interest income                47,439                  48,938                  37,521                    36,347                  34,731
    Credit loss expense                 1,687                   1,291                   1,535                     1,267                   4,689
    Net interest income after credit loss expense                45,752                  47,647                  35,986                    35,080                  30,042
    Noninterest income                  
    Investment services and trust activities                 3,544                   3,779                   3,410                     3,504                   3,503
    Service charges and fees                 2,131                   2,159                   2,170                     2,156                   2,144
    Card revenue                 1,744                   1,833                   1,935                     1,907                   1,943
    Loan revenue                 1,194                   1,841                      760                     1,525                      856
    Bank-owned life insurance                 1,057                      719                      879                        668                      660
    Investment securities gains (losses), net                      33                      161              (140,182 )                        33                        36
    Other                    433                      345                      640                    11,761                      608
    Total noninterest income (loss)                10,136                  10,837              (130,388 )                  21,554                   9,750
    Noninterest expense                  
    Compensation and employee benefits                21,212                  20,684                  19,943                    20,985                  20,930
    Occupancy expense of premises, net                 2,588                   2,772                   2,443                     2,435                   2,813
    Equipment                 2,426                   2,688                   2,486                     2,530                   2,600
    Legal and professional                 2,226                   2,534                   2,261                     2,253                   2,059
    Data processing                 1,698                   1,719                   1,580                     1,645                   1,360
    Marketing                    552                      793                      619                        636                      598
    Amortization of intangibles                 1,408                   1,449                   1,470                     1,593                   1,637
    FDIC insurance                    917                      980                      923                     1,051                      942
    Communications                    159                      154                      159                        191                      196
    Foreclosed assets, net                      74                        56                      330                        138                      358
    Other                 3,033                   3,543                   3,584                     2,304                   2,072
    Total noninterest expense                36,293                  37,372                  35,798                    35,761                  35,565
    Income (loss) before income tax expense                19,595                  21,112              (130,200 )                  20,873                   4,227
    Income tax expense (benefit)                 4,457                   4,782                (34,493 )                   5,054                      958
    Net income (loss) $            15,138   $            16,330   $          (95,707 )   $            15,819   $             3,269
                       
    Earnings (loss) per common share                  
    Basic $               0.73   $               0.79   $              (6.05 )   $               1.00   $               0.21
    Diluted $               0.73   $               0.78   $              (6.05 )   $               1.00   $               0.21
    Weighted average basic common shares outstanding                20,797                  20,776                  15,829                    15,763                  15,723
    Weighted average diluted common shares outstanding                20,849                  20,851                  15,829                    15,781                  15,774
    Dividends paid per common share $            0.2425   $            0.2425   $            0.2425     $            0.2425   $            0.2425
                                   

    MIDWESTONE FINANCIAL GROUP, INC.
    FINANCIAL STATISTICS

      As of or for the Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands, except per share amounts)   2025       2024       2024  
    Earnings:          
    Net interest income $ 47,439     $ 48,938     $ 34,731  
    Noninterest income   10,136       10,837       9,750  
    Total revenue, net of interest expense   57,575       59,775       44,481  
    Credit loss expense   1,687       1,291       4,689  
    Noninterest expense   36,293       37,372       35,565  
    Income before income tax expense   19,595       21,112       4,227  
    Income tax expense   4,457       4,782       958  
    Net income $ 15,138     $ 16,330     $ 3,269  
    Adjusted earnings(1) $ 15,301     $ 16,112     $ 4,504  
    Per Share Data:          
    Diluted earnings $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings(1)   0.73       0.77       0.29  
    Book value   27.85       26.94       33.53  
    Tangible book value(1)   23.36       22.37       27.14  
    Ending Balance Sheet:          
    Total assets $ 6,254,394     $ 6,236,329     $ 6,748,015  
    Loans held for investment, net of unearned income   4,304,184       4,315,627       4,414,646  
    Total securities   1,305,530       1,328,433       1,862,169  
    Total deposits   5,489,142       5,477,982       5,585,236  
    Short-term borrowings   1,482       3,186       422,988  
    Long-term debt   111,398       113,376       122,066  
    Total shareholders’ equity   579,625       559,696       528,040  
    Average Balance Sheet:          
    Average total assets $ 6,168,546     $ 6,279,975     $ 6,635,379  
    Average total loans   4,290,710       4,307,583       4,298,216  
    Average total deposits   5,398,819       5,464,900       5,481,114  
    Financial Ratios:          
    Return on average assets   1.00 %     1.03 %     0.20 %
    Return on average equity   10.74 %     11.53 %     2.49 %
    Return on average tangible equity(1)   13.75 %     14.80 %     4.18 %
    Efficiency ratio(1)   59.38 %     59.06 %     71.28 %
    Net interest margin, tax equivalent(1)   3.44 %     3.43 %     2.33 %
    Loans to deposits ratio   78.41 %     78.78 %     79.04 %
    CET1 Ratio   10.97 %     10.73 %     8.98 %
    Common equity ratio   9.27 %     8.97 %     7.83 %
    Tangible common equity ratio(1)   7.89 %     7.57 %     6.43 %
    Credit Risk Profile:          
    Total nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming loans ratio   0.41 %     0.51 %     0.66 %
    Total nonperforming assets $ 20,889     $ 25,184     $ 33,164  
    Nonperforming assets ratio   0.33 %     0.40 %     0.49 %
    Net charge-offs $ 3,087     $ 691     $ 189  
    Net charge-off ratio   0.29 %     0.06 %     0.02 %
    Allowance for credit losses $ 53,900     $ 55,200     $ 55,900  
    Allowance for credit losses ratio   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual ratio   309.47 %     254.32 %     197.53 %
               
    (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
     

    MIDWESTONE FINANCIAL GROUP, INC.
    AVERAGE BALANCE SHEET AND YIELD ANALYSIS

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    (Dollars in thousands) Average
    Balance
      Interest
    Income/
    Expense
      Average
    Yield/
    Cost
      Average
    Balance
      Interest
    Income/
    Expense
      Average
    Yield/
    Cost
      Average Balance   Interest
    Income/
    Expense
      Average
    Yield/
    Cost
    ASSETS                                  
    Loans, including fees (1)(2)(3) $4,290,710   $60,443   5.71%   $4,307,583   $63,443   5.86%   $4,298,216   $58,867   5.51%
    Taxable investment securities 1,207,844   13,327   4.47%   1,080,716   11,320   4.17%   1,557,603   9,460   2.44%
    Tax-exempt investment securities (2)(4) 105,563   865   3.32%   109,183   896   3.26%   328,736   2,097   2.57%
    Total securities held for investment(2) 1,313,407   14,192   4.38%   1,189,899   12,216   4.08%   1,886,339   11,557   2.46%
    Other 124,133   1,247   4.07%   309,904   3,761   4.83%   30,605   418   5.49%
    Total interest earning assets(2) $5,728,250   $75,882   5.37%   $5,807,386   $79,420   5.44%   $6,215,160   $70,842   4.58%
    Other assets 440,296           472,589           420,219        
    Total assets $6,168,546           $6,279,975           $6,635,379        
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                  
    Interest checking deposits $1,240,586   $2,127   0.70%   $1,252,481   $2,205   0.70%   $1,301,470   $2,890   0.89%
    Money market deposits 1,002,743   6,333   2.56%   1,046,571   7,197   2.74%   1,102,543   8,065   2.94%
    Savings deposits 835,731   3,057   1.48%   799,931   3,158   1.57%   694,143   2,047   1.19%
    Time deposits 1,397,595   13,967   4.05%   1,410,542   14,764   4.16%   1,446,981   14,724   4.09%
    Total interest bearing deposits 4,476,655   25,484   2.31%   4,509,525   27,324   2.41%   4,545,137   27,726   2.45%
    Securities sold under agreements to repurchase 2,705   5   0.75%   3,640   8   0.87%   5,330   11   0.83%
    Other short-term borrowings   20   —%   6,465   107   6.58%   409,525   4,964   4.88%
    Total short-term borrowings 2,705   25   3.75%   10,105   115   4.53%   414,855   4,975   4.82%
    Long-term debt 113,364   1,791   6.41%   116,018   1,890   6.48%   123,266   2,103   6.86%
    Total borrowed funds 116,069   1,816   6.35%   126,123   2,005   6.32%   538,121   7,078   5.29%
    Total interest bearing liabilities $4,592,724   $27,300   2.41%   $4,635,648   $29,329   2.52%   $5,083,258   $34,804   2.75%
    Noninterest bearing deposits 922,164           955,375           935,977        
    Other liabilities 82,280           125,536           88,611        
    Shareholders’ equity 571,378           563,416           527,533        
    Total liabilities and shareholders’ equity $6,168,546           $6,279,975           $6,635,379        
    Net interest income(2)     $48,582           $50,091           $36,038    
    Net interest spread(2)         2.96%           2.92%           1.83%
    Net interest margin(2)         3.44%           3.43%           2.33%
                                       
    Total deposits(5) $5,398,819   $25,484   1.91%   $5,464,900   $27,324   1.99%   $5,481,114   $27,726   2.03%
    Cost of funds(6)         2.01%           2.09%           2.33%
    (1) Average balance includes nonaccrual loans.
    (2) Tax equivalent. The federal statutory tax rate utilized was 21%.
    (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $256 thousand, $456 thousand, and $237 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Loan purchase discount accretion was $1.2 million, $2.5 million, and $1.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Tax equivalent adjustments were $981 thousand, $985 thousand, and $920 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (4) Interest income includes tax equivalent adjustments of $162 thousand, $168 thousand, and $387 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
    (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.
       

    Non-GAAP Measures

    This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

    Tangible Common Equity/Tangible Book Value                    
    per Share/Tangible Common Equity Ratio   March 31,   December 31,   September 30,   June 30,   March 31,
    (Dollars in thousands, except per share data)     2025       2024       2024       2024       2024  
    Total shareholders’ equity   $ 579,625     $ 559,696     $ 562,238     $ 543,286     $ 528,040  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible common equity   $ 486,226     $ 464,889     $ 465,981     $ 445,959     $ 427,391  
                         
    Total assets   $ 6,254,394     $ 6,236,329     $ 6,552,482     $ 6,581,658     $ 6,748,015  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible assets   $ 6,160,995     $ 6,141,522     $ 6,456,225     $ 6,484,331     $ 6,647,366  
                         
    Book value per share   $ 27.85     $ 26.94     $ 27.06     $ 34.44     $ 33.53  
    Tangible book value per share(1)   $ 23.36     $ 22.37     $ 22.43     $ 28.27     $ 27.14  
    Shares outstanding     20,815,715       20,777,485       20,774,919       15,773,468       15,750,471  
                         
    Common equity ratio     9.27 %     8.97 %     8.58 %     8.25 %     7.83 %
    Tangible common equity ratio(2)     7.89 %     7.57 %     7.22 %     6.88 %     6.43 %
                                             

    (1) Tangible common equity divided by shares outstanding. 
    (2) Tangible common equity divided by tangible assets.  

        Three Months Ended
    Return on Average Tangible Equity   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net income   $ 15,138     $ 16,330     $ 3,269  
    Intangible amortization, net of tax(1)     1,047       1,075       1,228  
    Tangible net income   $ 16,185     $ 17,405     $ 4,497  
                 
    Average shareholders’ equity   $ 571,378     $ 563,416     $ 527,533  
    Average intangible assets, net     (94,169 )     (95,498 )     (95,296 )
    Average tangible equity   $ 477,209     $ 467,918     $ 432,237  
                 
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(2)     13.75 %     14.80 %     4.18 %
                             

    (1) The income tax rate utilized was the blended marginal tax rate.  
    (2) Annualized tangible net income divided by average tangible equity.

    Net Interest Margin, Tax Equivalent/
    Core Net Interest Margin
      Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net interest income   $ 47,439     $ 48,938     $ 34,731  
    Tax equivalent adjustments:            
    Loans(1)     981       985       920  
    Securities(1)     162       168       387  
    Net interest income, tax equivalent   $ 48,582     $ 50,091     $ 36,038  
    Loan purchase discount accretion     (1,166 )     (2,496 )     (1,152 )
    Core net interest income   $ 47,416     $ 47,595     $ 34,886  
                 
    Net interest margin     3.36 %     3.35 %     2.25 %
    Net interest margin, tax equivalent(2)     3.44 %     3.43 %     2.33 %
    Core net interest margin(3)     3.36 %     3.26 %     2.26 %
    Average interest earning assets   $ 5,728,250     $ 5,807,386     $ 6,215,160  
                             

    (1) The federal statutory tax rate utilized was 21%.  
    (2) Annualized tax equivalent net interest income divided by average interest earning assets.  
    (3) Annualized core net interest income divided by average interest earning assets.   

          Three Months Ended
    Loan Yield, Tax Equivalent / Core Yield on Loans   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Loan interest income, including fees     $ 59,462     $ 62,458     $ 57,947  
    Tax equivalent adjustment(1)       981       985       920  
    Tax equivalent loan interest income     $ 60,443     $ 63,443     $ 58,867  
    Loan purchase discount accretion       (1,166 )     (2,496 )     (1,152 )
    Core loan interest income     $ 59,277     $ 60,947     $ 57,715  
                   
    Yield on loans       5.62 %     5.77 %     5.42 %
    Yield on loans, tax equivalent(2)       5.71 %     5.86 %     5.51 %
    Core yield on loans(3)       5.60 %     5.63 %     5.40 %
    Average loans     $ 4,290,710     $ 4,307,583     $ 4,298,216  
                               

    (1) The federal statutory tax rate utilized was 21%.  
    (2) Annualized tax equivalent loan interest income divided by average loans.  
    (3) Annualized core loan interest income divided by average loans.  

          Three Months Ended
    Efficiency Ratio   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Total noninterest expense     $ 36,293     $ 37,372     $ 35,565  
    Amortization of intangibles       (1,408 )     (1,449 )     (1,637 )
    Merger-related expenses       (40 )     (31 )     (1,314 )
    Noninterest expense used for efficiency ratio     $ 34,845     $ 35,892     $ 32,614  
                   
    Net interest income, tax equivalent(1)     $ 48,582     $ 50,091     $ 36,038  
    Plus: Noninterest income       10,136       10,837       9,750  
    Less: Investment securities gains, net       33       161       36  
    Net revenues used for efficiency ratio     $ 58,685     $ 60,767     $ 45,752  
                   
    Efficiency ratio (2)       59.38 %     59.06 %     71.28 %
                               

    (1) The federal statutory tax rate utilized was 21%.    
    (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.  

          Three Months Ended
    Adjusted Earnings   March 31,   December 31,   March 31,
    (Dollars in thousands, except per share data)     2025       2024     2024  
    Net income     $         15,138     $         16,330   $           3,269  
    Less: Investment securities gains, net of tax(1)                        25                      119                      27  
    Less: Mortgage servicing rights (loss) gain, net of tax(1)                     (158 )                    122                   (276 )
    Plus: Merger-related expenses, net of tax(1)                        30                        23                    986  
    Adjusted earnings     $         15,301     $         16,112   $           4,504  
                   
    Weighted average diluted common shares outstanding                 20,849                 20,851               15,774  
                   
    Earnings per common share – diluted     $             0.73     $             0.78   $             0.21  
    Adjusted earnings per common share(2)     $             0.73     $             0.77   $             0.29  
                             

    (1) The income tax rate utilized was the blended marginal tax rate.      
    (2) Adjusted earnings divided by weighted average diluted common shares outstanding.  

    Category: Earnings

    This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.

    Source: MidWestOne Financial Group, Inc.

    Industry: Banks

    Contact:

      Charles N. Reeves Barry S. Ray
      Chief Executive Officer Chief Financial Officer
      319.356.5800   319.356.5800
         

    The MIL Network

  • MIL-OSI: Glacier Bancorp, Inc. Announces Results For the Quarter and Period Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    1st Quarter 2025 Highlights:

    • Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 66 percent from the prior year first quarter diluted earnings per share of $0.29 per share.
    • Net income was $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent, from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the prior year first quarter net income of $32.6 million.
    • The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent.
    • Total deposits of $20.634 billion increased $87.1 million, or 2 percent annualized, during the current quarter.
    • The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.
    • The total earning asset yield of 4.61 percent in the current quarter increased 4 basis points from the prior quarter earning asset yield of 4.57 percent and increased 30 basis points from the prior year first quarter earning asset yield of 4.31 percent.
    • The total core deposit cost (including non-interest bearing deposits) of 1.25 percent in the current quarter decreased 4 basis point from the prior quarter total core deposit cost of 1.29 percent.
    • The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis point from the prior quarter total cost of funding of 1.71 percent.
    • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 160 consecutive quarterly dividends and has increased the dividend 49 times.
    • The Company announced the signing of a definitive agreement to acquire Bank of Idaho Holding Co., the bank holding company for Bank of Idaho (collectively, “BOID”) which had total assets of $1.3 billion as of March 31, 2025. This will be the Company’s 26th bank acquisition since 2000 and its 12th announced transaction in the past 10 years.

    Financial Summary  

      At or for the Three Months ended
    (Dollars in thousands, except per share and market data) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Operating results          
    Net income $ 54,568     61,754     32,627  
    Basic earnings per share $ 0.48     0.54     0.29  
    Diluted earnings per share $ 0.48     0.54     0.29  
    Dividends declared per share $ 0.33     0.33     0.33  
    Market value per share          
    Closing $ 44.22     50.22     40.28  
    High $ 52.81     60.67     42.75  
    Low $ 43.18     43.70     34.74  
    Selected ratios and other data          
    Number of common stock shares outstanding   113,517,944     113,401,955     113,388,590  
    Average outstanding shares – basic   113,451,199     113,398,213     112,492,142  
    Average outstanding shares – diluted   113,546,365     113,541,026     112,554,402  
    Return on average assets (annualized)   0.80 %   0.87 %   0.47 %
    Return on average equity (annualized)   6.77 %   7.62 %   4.25 %
    Efficiency ratio   65.49 %   60.50 %   74.41 %
    Loan to deposit ratio   83.64 %   84.17 %   82.04 %
    Number of full time equivalent employees   3,457     3,441     3,438  
    Number of locations   227     227     232  
    Number of ATMs   286     284     285  
                       

    KALISPELL, Mont., April 24, 2025 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the $32.6 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 65 percent from the prior year first quarter diluted earnings per share of $0.29. “We are very pleased with the long-term positive trends we see in our Company. Deposit costs are decreasing, loan yields are increasing, and margin continues to grow,” said Randy Chesler, President and Chief Executive Officer. “While uncertainty about the economy persists, we remain optimistic about our customers’ ability to quickly adapt to a changing environment.”

    On January 13, 2025, the Company announced the signing of a definitive agreement to acquire BOID with 15 branches across eastern Idaho, Boise and eastern Washington. As of March 31, 2025, BOID had total assets of $1.3 billion, total loans of $1.1 billion and total deposits of $1.1 billion. Upon closing of the transaction, the BOID operations will join three existing Glacier Bank divisions. The Eastern Idaho operations of Bank of Idaho will join Citizens Community Bank, the Boise operations will join Mountain West Bank and the Eastern Washington operations will join Wheatland Bank. The acquisition has received all required regulatory approvals and is scheduled to close on April 30, 2025, subject to satisfaction of the remaining conditions set forth in the merger agreement and the approval by the BOID shareholders.

    Asset Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Cash and cash equivalents $ 981,485     848,408     788,660     133,077     192,825  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073     (72,893 )   (456,761 )
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583     (33,272 )   (190,008 )
    Total debt securities   7,433,887     7,540,052     8,080,656     (106,165 )   (646,769 )
    Loans receivable                  
    Residential real estate   1,850,079     1,858,929     1,752,514     (8,850 )   97,565  
    Commercial real estate   10,952,809     10,963,713     10,672,269     (10,904 )   280,540  
    Other commercial   3,121,477     3,119,535     3,030,608     1,942     90,869  
    Home equity   920,132     930,994     883,062     (10,862 )   37,070  
    Other consumer   374,021     388,678     394,049     (14,657 )   (20,028 )
    Loans receivable   17,218,518     17,261,849     16,732,502     (43,331 )   486,016  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )   (4,359 )   (11,621 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723     (47,690 )   474,395  
    Other assets   2,435,389     2,458,719     2,419,131     (23,330 )   16,258  
    Total assets $ 27,858,879     27,902,987     27,822,170     (44,108 )   36,709  
                                   

    The Company continues to maintain a strong cash position of $981 million at March 31, 2025 which was an increase of $133 million over the prior quarter and an increase of $193 million over the prior year first quarter. Total debt securities of $7.434 billion at March 31, 2025 decreased $106 million, or 1 percent, during the current quarter and decreased $647 million, or 8 percent, from the prior year first quarter. Debt securities represented 27 percent of total assets at March 31, 2025 and December 31, 2024 compared to 29 percent at March 31, 2024.

    The loan portfolio of $17.219 billion at March 31, 2025 decreased $43 million, or 25 basis points, during the current quarter and increased $486 million, or 3 percent, from the prior year first quarter. Excluding the Rocky Mountain Bank (“RMB”) acquisition on July 19, 2024, the loan portfolio organically increased $214 million, or 1 percent, since the prior year first quarter. Excluding the RMB acquisition, the loan category with the largest dollar increase in the last twelve months was commercial real estate which increased $159 million, or 1 percent.

    Credit Quality Summary

      At or for the
    Three Months ended
      At or for the
    Year ended
      At or for the
    Three Months ended
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Allowance for credit losses          
    Balance at beginning of period $ 206,041     192,757     192,757  
    Acquisitions       3     3  
    Provision for credit losses   6,154     27,179     9,091  
    Charge-offs   (3,897 )   (18,626 )   (4,295 )
    Recoveries   2,102     4,728     1,223  
    Balance at end of period $ 210,400     206,041     198,779  
    Provision for credit losses          
    Loan portfolio $ 6,154     27,179     9,091  
    Unfunded loan commitments   1,660     1,127     (842 )
    Total provision for credit losses $ 7,814     28,306     8,249  
    Other real estate owned $ 1,085     1,085     432  
    Other foreclosed assets   68     79     459  
    Accruing loans 90 days or more past due   5,289     6,177     3,796  
    Non-accrual loans   32,896     20,445     20,738  
    Total non-performing assets $ 39,338     27,786     25,425  
    Non-performing assets as a percentage of subsidiary assets   0.14 %   0.10 %   0.09 %
    Allowance for credit losses as a percentage of non-performing loans   551 %   774 %   810 %
    Allowance for credit losses as a percentage of total loans   1.22 %   1.19 %   1.19 %
    Net charge-offs as a percentage of total loans   0.01 %   0.08 %   0.02 %
    Accruing loans 30-89 days past due $ 46,458     32,228     62,423  
    U.S. government guarantees included in non-performing assets $ 685     748     1,490  
                       

    Non-performing assets as a percentage of subsidiary assets at March 31, 2025 was 0.14 percent compared to 0.10 percent in the prior quarter and 0.09 percent in the prior year first quarter. Non-performing assets of $39.3 million at March 31, 2025 increased $11.6 million, or 42 percent, over the prior quarter and increased $13.9 million, or 55 percent, over the prior year first quarter. The increase in the non-performing loans in the current quarter was primarily attributable to a single credit relationship.

    Early stage delinquencies (accruing loans 30-89 days past due) as a percentage of loans at March 31, 2025 were 0.27 percent compared to 0.19 percent for the prior quarter end and 0.37 percent for the prior year first quarter. Early stage delinquencies of $46.5 million at March 31, 2025 increased $14.2 million from the prior quarter and decreased $16.0 million from prior year first quarter.

    The current quarter credit loss expense of $7.8 million included $6.2 million of provision for credit losses on loans and $1.7 million of provision for credit losses on unfunded commitments.

    The allowance for credit losses (“ACL”) on loans as a percentage of total loans outstanding at March 31, 2025 was 1.22 percent compared to 1.19 percent at year end and the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts, actual results, and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

    Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

    (Dollars in thousands) Provision for
    Credit Losses Loans
      Net Charge-Offs   ACL
    as a Percent
    of Loans
      Accruing
    Loans 30-89
    Days Past Due
    as a Percent of
    Loans
      Non-Performing
    Assets to
    Total Subsidiary
    Assets
    First quarter 2025 $ 6,154   $ 1,795   1.22 %   0.27 %   0.14 %
    Fourth quarter 2024   6,041     5,170   1.19 %   0.19 %   0.10 %
    Third quarter 2024   6,981     2,766   1.19 %   0.33 %   0.10 %
    Second quarter 2024   5,066     2,890   1.19 %   0.29 %   0.06 %
    First quarter 2024   9,091     3,072   1.19 %   0.37 %   0.09 %
    Fourth quarter 2023   4,181     3,695   1.19 %   0.31 %   0.09 %
    Third quarter 2023   5,095     2,209   1.19 %   0.09 %   0.15 %
    Second quarter 2023   5,254     2,473   1.19 %   0.16 %   0.12 %
                                 

    Net charge-offs for the current quarter were $1.8 million compared to $5.2 million in the prior quarter and $3.1 million for the prior year first quarter. The current quarter net charge-offs included $1.9 million in deposit overdraft net charge-offs and $78 thousand of net loan recoveries.

    Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on the regulatory classification of loans is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

    Liability Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Deposits                  
    Non-interest bearing deposits $ 6,100,548   6,136,709   6,055,069   (36,161 )   45,479  
    NOW and DDA accounts   5,676,177   5,543,512   5,376,605   132,665     299,572  
    Savings accounts   2,896,378   2,845,124   2,949,908   51,254     (53,530 )
    Money market deposit accounts   2,816,874   2,878,213   3,002,942   (61,339 )   (186,068 )
    Certificate accounts   3,140,333   3,139,821   3,039,190   512     101,143  
    Core deposits, total   20,630,310   20,543,379   20,423,714   86,931     206,596  
    Wholesale deposits   3,740   3,615   3,809   125     (69 )
    Deposits, total   20,634,050   20,546,994   20,427,523   87,056     206,527  
    Repurchase agreements   1,849,070   1,777,475   1,540,008   71,595     309,062  
    Deposits and repurchase agreements, total   22,483,120   22,324,469   21,967,531   158,651     515,589  
    Federal Home Loan Bank advances   1,520,000   1,800,000   2,140,157   (280,000 )   (620,157 )
    Other borrowed funds   82,443   83,341   88,814   (898 )   (6,371 )
    Subordinated debentures   133,145   133,105   132,984   40     161  
    Other liabilities   352,563   338,218   381,977   14,345     (29,414 )
    Total liabilities $ 24,571,271   24,679,133   24,711,463   (107,862 )   (140,192 )
                             

    Total deposits of $20.634 billion at March 31, 2025 increased $87.1 million, or 2 percent annualized, from the prior quarter and increased $207 million, or 1 percent, from the prior year first quarter. Total repurchase agreements of $1.849 billion at March 31, 2025 increased $71.6 million, or 4 percent, from the prior quarter and increased $309 million, or 20 percent, from the prior year first quarter. Total deposits organically decreased $190 million, or 1 percent, from the prior year first quarter and total deposits and repurchase agreements organically increased $115 million, or 52 basis points, from the prior year first quarter. Non-interest bearing deposits represented 30 percent of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024. Federal Home Loan Bank (“FHLB”) advances of $1.520 billion decreased $280 million, or 16 percent, from the prior quarter and decreased $620 million, or 29 percent, from the prior year first quarter.

    Stockholders’ Equity Summary

                  $ Change from
    (Dollars in thousands, except per share data) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Common equity $ 3,550,719     3,533,150     3,483,012     17,569   67,707  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )   46,185   109,194  
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707     63,754   176,901  
    Goodwill and intangibles, net   (1,099,229 )   (1,102,500 )   (1,069,808 )   3,271   (29,421 )
    Tangible stockholders’ equity $ 2,188,379     2,121,354     2,040,899     67,025   147,480  
    Stockholders’ equity to total assets   11.80 %   11.55 %   11.18 %          
    Tangible stockholders’ equity to total tangible assets   8.18 %   7.92 %   7.63 %          
    Book value per common share $ 28.96     28.43     27.43     0.53   1.53  
    Tangible book value per common share $ 19.28     18.71     18.00      0.57   1.28  
                                 

    Tangible stockholders’ equity of $2.188 billion at March 31, 2025 increased $67.0 million, or 3 percent, compared to the prior quarter and was primarily the result of a decrease in unrealized loss on the available-for-sale debt securities and earnings retention. Tangible stockholders’ equity at March 31, 2025 increased $147 million, or 7 percent, compared to the prior year first quarter and was primarily due to the decrease in unrealized loss on the available-for-sale debt securities and earnings retention. The increase was partially offset by the increase in goodwill and core deposits associated with the RMB acquisition. Tangible book value per common share of $19.28 at the current quarter end increased $0.57 per share, or 3 percent, from the prior quarter and increased $1.28 per share, or 7 percent, from the prior year first quarter.

    Cash Dividends
    On March 26, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable April 17, 2025 to shareholders of record on April 8, 2025. The dividend was the Company’s 160th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

    Operating Results for Three Months Ended March 31, 2025 
    Compared to December 31, 2024, and March 31, 2024

    Income Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Net interest income                  
    Interest income $ 289,925     297,036     279,402     (7,111 )   10,523  
    Interest expense   99,946     105,593     112,922     (5,647 )   (12,976 )
    Total net interest income   189,979     191,443     166,480     (1,464 )   23,499  
                       
    Non-interest income                  
    Service charges and other fees   18,818     20,322     18,563     (1,504 )   255  
    Miscellaneous loan fees and charges   4,664     4,541     4,362     123     302  
    Gain on sale of loans   4,311     3,926     3,362     385     949  
    Gain on sale of securities           16         (16 )
    Other income   4,849     2,760     3,686     2,089     1,163  
    Total non-interest income   32,642     31,549     29,989     1,093     2,653  
    Total income $ 222,621     222,992     196,469     (371 )   26,152  
    Net interest margin (tax-equivalent)   3.04 %   2.97 %   2.59 %        
                               

    Net Interest Income
    Net interest income of $190 million for the current quarter decreased $1.5 million, or 1 percent, from the prior quarter net interest income of $191 million and increased $23.5 million, or 14 percent, from the prior year first quarter net interest income of $166 million. The current quarter interest income of $290 million decreased $7.1 million, or 2 percent, over the prior quarter and was primarily driven by fewer days in the current quarter coupled with decreased average interest-bearing cash balances. The current quarter interest income increased $10.5 million, or 4 percent, over the prior year first quarter primarily due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.

    The current quarter interest expense of $99.9 million decreased $5.6 million, or 5 percent, over the prior quarter and was primarily attributable to a decrease in deposit costs. The current quarter interest expense decreased $13.0 million, or 11 percent, over the prior year first quarter and was primarily the result of lower average wholesale borrowings and a decrease in deposit costs. Core deposit cost (including non-interest bearing deposits) was 1.25 percent for the current quarter compared to 1.29 percent in the prior quarter and 1.34 percent for the prior year first quarter. The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis points from the prior quarter and decreased 16 basis point from the prior year first quarter.

    The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and was primarily driven by an increase in loan yields and a decrease in total cost of funding. The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent and was primarily driven by the increase in loan yields and the decrease in core deposit cost. Core net interest margin excludes the impact from discount accretion and non-accrual interest. Excluding the 5 basis points from discount accretion, the core net interest margin was 2.99 percent in the current quarter compared to 2.97 percent in the prior quarter and 2.59 in the prior year first quarter. “The Company’s net interest margin increased for the fifth consecutive quarter,” said Ron Copher, Chief Financial Officer. “The continued increase in loan yields and decrease in the deposit costs contributed to the 7 basis points increase in the net interest margin as it expanded to 3.04 percent in the current quarter.”

    Non-interest Income
    Non-interest income for the current quarter totaled $32.6 million, which was an increase of $1.1 million, or 3 percent, over the prior quarter and an increase of $2.7 million, or 9 percent, over the prior year first quarter. Service charges and other fees of $18.8 million for the current quarter decreased $1.5 million, or 7 percent, compared to the prior quarter and increased $255 thousand, or 1 percent, compared to the prior year first quarter. Gain on the sale of residential loans of $4.3 million for the current quarter increased $385 thousand, or 10 percent, compared to the prior quarter and increased $949 thousand, or 28 percent, from the prior year first quarter. Other income of $4.8 million increased $2.1 million, or 75 percent, over the prior quarter primarily due to other income of $1.1 million related to bank owned life insurance proceeds coupled with an increase in income from equity investments and other one-time adjustments. Other income increased $1.2 million, or 32 percent, over the prior year first quarter primarily due to the current quarter proceeds from bank owned life insurance.

    Non-interest Expense Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Compensation and employee benefits $ 91,443   81,600   85,789   9,843     5,654  
    Occupancy and equipment   12,294   11,589   11,883   705     411  
    Advertising and promotions   4,144   3,725   3,983   419     161  
    Data processing   9,138   9,145   9,159   (7 )   (21 )
    Other real estate owned and foreclosed assets   63   30   25   33     38  
    Regulatory assessments and insurance   5,534   5,890   7,761   (356 )   (2,227 )
    Intangibles amortization   3,270   3,613   2,760   (343 )   510  
    Other expenses   25,432   25,373   30,483   59     (5,051 )
    Total non-interest expense $ 151,318   140,965   151,843   10,353     (525 )
                             

    Total non-interest expense of $151 million for the current quarter increased $10.4 million, or 7 percent, over the prior quarter and decreased $525 thousand, or 35 basis points, over the prior year first quarter. Compensation and employee benefits of $91.4 million increased by $9.8 million, or 12 percent, over the prior quarter and was primarily attributable to increased performance-related compensation. Compensation and employee benefits increased $5.6 million, or 7 percent, from the prior year first quarter and was primarily driven by annual salary increases and increases in staffing levels from prior year acquisitions. Regulatory assessment and insurance expense of $5.5 million decreased $2.2 million from the prior year first quarter as a result of adjustments to the FDIC special assessment.

    Other expenses of $25.4 million increased $59 thousand, or 23 basis points, from the prior quarter. Other expenses decreased $5.1 million, or 17 percent, from the prior year first quarter and was primarily driven by a decrease in acquisition-related expense. Acquisition-related expense was $587 thousand in the current quarter compared to $491 thousand in the prior quarter and $5.7 million in the prior year first quarter. The current quarter other expenses included $1.2 million of gain from the sale of a former branch facility compared to a $2.1 million gain in the prior quarter and a $989 thousand gain in the prior year first quarter.

    Federal and State Income Tax Expense

    Tax expense during the first quarter of 2025 was $8.9 million, a decrease of $2.8 million, or 24 percent, compared to the prior quarter and an increase of $5.2 million, or 138 percent, from the prior year first quarter. The effective tax rate in the current quarter was 14.1 percent compared to 16.0 percent in the prior quarter. The lower tax expense and lower effective tax rate in the current quarter compared to the prior quarter was the result of a combination of higher federal income tax credits and a decrease in income before income tax expense.

    Efficiency Ratio
    The efficiency ratio was 65.49 percent in the current quarter compared to 60.50 percent in the prior quarter and 74.41 percent in the prior year first quarter. The increase from the prior quarter was principally driven by the decrease in net interest income combined with an increase in non-interest expense. The decrease from the prior year first quarter was principally due to the increase in net interest income.

    Forward-Looking Statements  
    This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “will,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:

    • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
    • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
    • legislative or regulatory changes, including increased FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;
    • risks related to overall economic conditions, including the impact on the economy of an uncertain interest rate environment, inflationary pressures and the potential for significant changes in economic and trade policies in the new administration;
    • risks to the Company’s business and the business of the Company’s customers arising from current or future tariffs or other trade restrictions, labor or supply chain issues, change in labor force, or geopolitical instability, including the wars in Ukraine and the Middle East;
    • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any pending or future acquisitions;
    • costs or difficulties related to the completion and integration of pending or future acquisitions;
    • impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
    • reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
    • deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company’s ability to obtain and maintain customers;
    • changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
    • risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
    • risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
    • material failure, potential interruption or breach in security of the Company’s systems or changes in technology which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
    • risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
    • success in managing risks involved in any of the foregoing; and
    • effects of any reputational damage to the Company resulting from any of the foregoing.

    The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

    Conference Call Information
    A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 25, 2025. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register-conf.media-server.com/register/BI3016c4b5b4bd4b0aac8f022e74f4c1d4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/ejk9q5pb

    About Glacier Bancorp, Inc.
    Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), The Foothills Bank (Yuma, AZ), Valley Bank (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

    CONTACT: Randall M. Chesler, CEO
    (406) 751-4722
    Ron J. Copher, CFO
    (406) 751-7706
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Financial Condition
               
    (Dollars in thousands, except per share data) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Assets          
    Cash on hand and in banks $ 322,253     268,746     232,064  
    Interest bearing cash deposits   659,232     579,662     556,596  
    Cash and cash equivalents   981,485     848,408     788,660  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073  
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583  
    Total debt securities   7,433,887     7,540,052     8,080,656  
    Loans held for sale, at fair value   40,523     33,060     27,035  
    Loans receivable   17,218,518     17,261,849     16,732,502  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723  
    Premises and equipment, net   411,095     411,968     379,826  
    Right-of-use assets, net   54,441     56,252     63,447  
    Other real estate owned and foreclosed assets   1,153     1,164     891  
    Accrued interest receivable   103,992     99,262     106,063  
    Deferred tax asset   122,942     138,955     161,327  
    Intangibles, net   47,911     51,182     46,046  
    Goodwill   1,051,318     1,051,318     1,023,762  
    Non-marketable equity securities   88,134     99,669     111,129  
    Bank-owned life insurance   191,044     189,849     186,625  
    Other assets   322,836     326,040     312,980  
    Total assets $ 27,858,879     27,902,987     27,822,170  
    Liabilities          
    Non-interest bearing deposits $ 6,100,548     6,136,709     6,055,069  
    Interest bearing deposits   14,533,502     14,410,285     14,372,454  
    Securities sold under agreements to repurchase   1,849,070     1,777,475     1,540,008  
    FHLB advances   1,520,000     1,800,000     2,140,157  
    Other borrowed funds   82,443     83,341     88,814  
    Subordinated debentures   133,145     133,105     132,984  
    Accrued interest payable   30,231     33,626     32,584  
    Other liabilities   322,332     304,592     349,393  
    Total liabilities   24,571,271     24,679,133     24,711,463  
    Commitments and Contingent Liabilities            
    Stockholders’ Equity          
    Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding            
    Common stock, $0.01 par value per share, 234,000,000 shares authorized   1,135     1,134     1,134  
    Paid-in capital   2,449,311     2,448,758     2,443,584  
    Retained earnings – substantially restricted   1,100,273     1,083,258     1,038,294  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707  
    Total liabilities and stockholders’ equity $ 27,858,879     27,902,987     27,822,170  
                       
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Operations
     
      Three Months ended
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Interest Income          
    Investment securities $ 45,646   50,381   56,218
    Residential real estate loans   24,275   23,960   20,764
    Commercial loans   197,388   199,260   181,472
    Consumer and other loans   22,616   23,435   20,948
    Total interest income   289,925   297,036   279,402
    Interest Expense          
    Deposits   62,865   67,079   67,196
    Securities sold under agreements to repurchase   13,733   14,822   12,598
    Federal Home Loan Bank advances   20,719   21,848   4,249
    FRB Bank Term Funding       27,097
    Other borrowed funds   402   348   344
    Subordinated debentures   2,227   1,496   1,438
    Total interest expense   99,946   105,593   112,922
    Net Interest Income   189,979   191,443   166,480
    Provision for credit losses   7,814   8,534   8,249
    Net interest income after provision for credit losses   182,165   182,909   158,231
    Non-Interest Income          
    Service charges and other fees   18,818   20,322   18,563
    Miscellaneous loan fees and charges   4,664   4,541   4,362
    Gain on sale of loans   4,311   3,926   3,362
    Gain on sale of securities       16
    Other income   4,849   2,760   3,686
    Total non-interest income   32,642   31,549   29,989
    Non-Interest Expense          
    Compensation and employee benefits   91,443   81,600   85,789
    Occupancy and equipment   12,294   11,589   11,883
    Advertising and promotions   4,144   3,725   3,983
    Data processing   9,138   9,145   9,159
    Other real estate owned and foreclosed assets   63   30   25
    Regulatory assessments and insurance   5,534   5,890   7,761
    Intangibles amortization   3,270   3,613   2,760
    Other expenses   25,432   25,373   30,483
    Total non-interest expense   151,318   140,965   151,843
    Income Before Income Taxes   63,489   73,493   36,377
    Federal and state income tax expense   8,921   11,739   3,750
    Net Income $ 54,568   61,754   32,627
                 
    Glacier Bancorp, Inc.
    Average Balance Sheets
       
      Three Months ended
      March 31, 2025   December 31, 2024
    (Dollars in thousands) Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
      Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,885,146   $ 23,960   5.08 %
    Commercial loans 1   14,091,210     198,921   5.73 %     14,059,864     200,956   5.69 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,324,341     23,435   7.04 %
    Total loans 2   17,279,394     245,812   5.77 %     17,269,351     248,351   5.72 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,615,474     14,501   3.59 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     7,314,265     38,189   2.09 %
    Total earning assets   25,830,807     293,346   4.61 %     26,199,090     301,041   4.57 %
    Goodwill and intangibles   1,100,801             1,104,362        
    Non-earning assets   847,855             888,404        
    Total assets $ 27,779,463           $ 28,191,856        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $   %   $ 6,343,443   $   %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,491,451     15,768   1.14 %
    Savings accounts   2,861,675     5,159   0.73 %     2,824,126     5,316   0.75 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,878,415     14,232   1.97 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,174,923     31,716   3.97 %
    Total core deposits   20,378,809     62,825   1.25 %     20,712,358     67,032   1.29 %
    Wholesale deposits 6   3,600     40   4.53 %     3,654     47   4.95 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,866,705     14,821   3.16 %
    FHLB advances   1,744,000     20,719   4.75 %     1,800,000     21,848   4.75 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     216,874     1,845   3.38 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,599,591     105,593   1.71 %
    Other liabilities   326,764             369,700        
    Total liabilities   24,512,019             24,969,291        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,222,565        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,191,856        
    Net interest income (tax-equivalent)     $ 193,400           $ 195,448    
    Net interest spread (tax-equivalent)         2.93 %           2.86 %
    Net interest margin (tax-equivalent)         3.04 %           2.97 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.1 million on tax-exempt debt securities income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    4 Includes interest income of $6.1 million and $9.2 million on average interest-bearing cash balances of $559.5 million and $759.7 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    5 Includes tax effect of $150 thousand and $203 thousand on federal income tax credits for the three months ended March 31, 2025 and December 31, 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       
    Glacier Bancorp, Inc.
    Average Balance Sheets (continued)
       
      Three Months ended
      March 31, 2025   March 31, 2024
    (Dollars in thousands) Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
      Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,747,184   $ 20,764   4.75 %
    Commercial loans 1   14,091,210     198,921   5.73 %     13,513,426     183,045   5.45 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,283,388     20,948   6.56 %
    Total loans 2   17,279,394     245,812   5.77 %     16,543,998     224,757   5.46 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,720,370     15,157   3.52 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     8,176,974     43,477   2.13 %
    Total earning assets   25,830,807     293,346   4.61 %     26,441,342     283,391   4.31 %
    Goodwill and intangibles   1,100,801             1,051,954        
    Non-earning assets   847,855             611,550        
    Total assets $ 27,779,463           $ 28,104,846        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $   %   $ 5,966,546   $   %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,275,703     15,918   1.21 %
    Savings accounts   2,861,675     5,159   0.73 %     2,900,649     5,655   0.78 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,948,294     14,393   1.96 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,000,713     31,175   4.18 %
    Total core deposits   20,378,809     62,825   1.25 %     20,091,905     67,141   1.34 %
    Wholesale deposits 6   3,600     40   4.53 %     3,965     55   5.50 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,513,397     12,598   3.35 %
    FHLB advances   1,744,000     20,719   4.75 %     350,754     4,249   4.79 %
    FRB Bank Term Funding         %     2,483,077     27,097   4.39 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     218,271     1,782   3.28 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,661,369     112,922   1.84 %
    Other liabilities   326,764             356,554        
    Total liabilities   24,512,019             25,017,923        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,086,923        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,104,846        
    Net interest income (tax-equivalent)     $ 193,400           $ 170,469    
    Net interest spread (tax-equivalent)         2.93 %           2.47 %
    Net interest margin (tax-equivalent)         3.04 %           2.59 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.6 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.2 million on tax-exempt debt securities income for the three months ended March 31, 2025 and 2024, respectively.
    4 Includes interest income of $6.1 million and $15.3 million on average interest-bearing cash balances of $559.5 million and $1.12 billion for the three months ended March 31, 2025 and 2024, respectively.
    5 Includes tax effect of $150 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2025 and 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       

    Glacier Bancorp, Inc.
    Loan Portfolio by Regulatory Classification

      Loans Receivable, by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Custom and owner occupied construction $ 233,584     $ 242,844     $ 273,835     (4)%   (15)%
    Pre-sold and spec construction   200,921       191,926       223,294     5 %   (10)%
    Total residential construction   434,505       434,770       497,129     %   (13)%
    Land development   177,448       197,369       215,828     (10)%   (18)%
    Consumer land or lots   197,553       187,024       188,635     6 %   5 %
    Unimproved land   115,528       113,532       103,032     2 %   12 %
    Developed lots for operative builders   64,782       61,661       47,591     5 %   36 %
    Commercial lots   95,574       99,243       92,748     (4)%   3 %
    Other construction   714,151       693,461       915,782     3 %   (22)%
    Total land, lot, and other construction   1,365,036       1,352,290       1,563,616     1 %   (13)%
    Owner occupied   3,182,589       3,197,138       3,057,348     %   4 %
    Non-owner occupied   4,054,107       4,053,996       3,920,696     %   3 %
    Total commercial real estate   7,236,696       7,251,134       6,978,044     %   4 %
    Commercial and industrial   1,392,365       1,395,997       1,371,201     %   2 %
    Agriculture   1,016,081       1,024,520       929,420     (1)%   9 %
    First lien   2,499,494       2,481,918       2,276,638     1 %   10 %
    Junior lien   85,343       76,303       51,579     12 %   65 %
    Total 1-4 family   2,584,837       2,558,221       2,328,217     1 %   11 %
    Multifamily residential   874,071       895,242       881,117     (2)%   (1)%
    Home equity lines of credit   989,043       1,005,783       947,652     (2)%   4 %
    Other consumer   188,388       209,457       223,566     (10)%   (16)%
    Total consumer   1,177,431       1,215,240       1,171,218     (3)%   1 %
    States and political subdivisions   1,001,058       983,601       848,454     2 %   18 %
    Other   176,961       183,894       191,121     (4)%   (7)%
    Total loans receivable, including loans held for sale   17,259,041       17,294,909       16,759,537     %   3 %
    Less loans held for sale 1   (40,523 )     (33,060 )     (27,035 )   23 %   50 %
    Total loans receivable $ 17,218,518     $ 17,261,849     $ 16,732,502     %   3 %

    ______________________________

    1 Loans held for sale are primarily first lien 1-4 family loans.
       
    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification
                   
       

    Non-performing Assets, by Loan Type

      Non-
    Accrual
    Loans
      Accruing
    Loans 90
    Days
    or More Past
    Due
      Other real estate
    owned and foreclosed assets
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Mar 31,
    2025
      Mar 31,
    2025
      Mar 31,
    2025
    Custom and owner occupied construction $ 194   198   210   194    
    Pre-sold and spec construction   2,896   2,132   1,049   2,133   763  
    Total residential construction   3,090   2,330   1,259   2,327   763  
    Land development   935   966   28   935    
    Consumer land or lots   173   78   144   173    
    Developed lots for operative builders   531   531   608     531  
    Commercial lots   47   47   2,205     47  
    Total land, lot and other construction   1,686   1,622   2,985   1,108   578  
    Owner occupied   3,601   2,979   1,501   3,073   96   432
    Non-owner occupied   2,235   2,235   8,853   1,582     653
    Total commercial real estate   5,836   5,214   10,354   4,655   96   1,085
    Commercial and Industrial   12,367   2,069   1,698   11,640   727  
    Agriculture   2,382   2,335   2,855   2,090   292  
    First lien   8,752   9,053   2,930   6,796   1,956  
    Junior lien   296   315   69   296    
    Total 1-4 family   9,048   9,368   2,999   7,092   1,956  
    Multifamily residential   400   389   395   400    
    Home equity lines of credit   3,479   3,465   1,892   2,726   753  
    Other consumer   1,003   955   927   858   77   68
    Total consumer   4,482   4,420   2,819   3,584   830   68
    Other   47   39   61     47  
    Total $ 39,338   27,786   25,425   32,896   5,289   1,153
                             

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)

      Accruing 30-89 Days Delinquent Loans,  by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Custom and owner occupied construction $ 786   $ 969   $ 4,784   (19)%   (84)%
    Pre-sold and spec construction       564     1,181   (100)%   (100)%
    Total residential construction   786     1,533     5,965   (49)%   (87)%
    Land development       1,450     59   (100)%   (100)%
    Consumer land or lots   1,026     402     332   155 %   209 %
    Unimproved land   32     36     575   (11)%   (94)%
    Developed lots for operative builders       214       (100)%   n/m
    Commercial lots   189         1,225   n/m   (85)%
    Other construction           1,248   n/m   (100)%
    Total land, lot and other construction   1,247     2,102     3,439   (41)%   (64)%
    Owner occupied   3,786     2,867     2,991   32 %   27 %
    Non-owner occupied   346     5,037     18,118   (93)%   (98)%
    Total commercial real estate   4,132     7,904     21,109   (48)%   (80)%
    Commercial and industrial   5,358     6,194     14,806   (13)%   (64)%
    Agriculture   5,731     744     3,922   670 %   46 %
    First lien   14,826     6,326     5,626   134 %   164 %
    Junior lien   1,023     214     145   378 %   606 %
    Total 1-4 family   15,849     6,540     5,771   142 %   175 %
    Home equity lines of credit   6,993     3,731     3,668   87 %   91 %
    Other consumer   1,824     1,775     1,948   3 %   (6)%
    Total consumer   8,817     5,506     5,616   60 %   57 %
    States and political subdivisions   3,220           n/m   n/m
    Other   1,318     1,705     1,795   (23)%   (27)%
    Total $ 46,458   $ 32,228   $ 62,423   44 %   (26)%

    ______________________________

    n/m – not measurable

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)
               
      Net Charge-Offs (Recoveries), Year-to-Date
    Period Ending, By Loan Type
      Charge-Offs   Recoveries
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Mar 31,
    2025
      Mar 31,
    2025
    Pre-sold and spec construction $     (4 )   (4 )    
    Pre-sold and spec construction $     (4 )   (4 )    
    Land development   (341 )   1,095     (1 )     341
    Consumer land or lots   (3 )   (22 )   (1 )     3
    Unimproved land       1,338          
    Commercial lots       319          
    Total land, lot and other construction   (344 )   2,730     (2 )     344
    Owner occupied   (1 )   (73 )   (3 )     1
    Non-owner occupied   (6 )   2     (1 )     6
    Total commercial real estate   (7 )   (71 )   (4 )     7
    Commercial and industrial   92     1,422     328     421   329
    Agriculture   (1 )   64     68       1
    First lien   (69 )   32     (4 )     69
    Junior lien   (5 )   (65 )   (5 )     5
    Total 1-4 family   (74 )   (33 )   (9 )     74
    Home equity lines of credit   (20 )   69     5       20
    Other consumer   276     1,078     251     331   55
    Total consumer   256     1,147     256     331   75
    Other   1,873     8,643     2,439     3,145   1,272
    Total $ 1,795     13,898     3,072     3,897   2,102
                               

    Visit our website at www.glacierbancorp.com 

    The MIL Network

  • MIL-OSI: OceanFirst Financial Corp. Announces First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    RED BANK, N.J., April 24, 2025 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025, a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Performance Ratios (Annualized):   2025   2024   2024
    Return on average assets   0.62 %   0.61 %   0.82 %
    Return on average stockholders’ equity   4.85     4.88     6.65  
    Return on average tangible stockholders’ equity (a)   7.05     7.12     9.61  
    Return on average tangible common equity (a)   7.40     7.47     10.09  
    Efficiency ratio   65.67     67.86     59.56  
    Net interest margin   2.90     2.69     2.81  

    (a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.

    Core earnings1 for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter.

    Core earnings PTPP1 for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter. Selected performance metrics are as follows:

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Core Ratios(Annualized):     2025       2024       2024  
    Return on average assets     0.62 %     0.65 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       8.91  
    Return on average tangible common equity     7.34       7.89       9.36  
    Efficiency ratio     65.81       67.74       61.05  
    Core diluted earnings per share   $ 0.35     $ 0.38     $ 0.44  
    Core PTPP diluted earnings per share     0.56       0.51       0.62  

    Key developments for the recent quarter are described below:

    • Margin Expansion: Net interest margin increased 21 basis points to 2.90%, from 2.69%, and net interest income increased by $3.3 million to $86.7 million driven by a decrease in total cost of deposits to 2.06% from 2.32% in the linked quarter.
    • Commercial Loans: Commercial and industrial loans increased $95.1 million, or 6.1% as compared to the linked quarter. Additionally, the total commercial loan pipeline increased 90% to $375.6 million from $197.5 million in the linked quarter.
    • Provision for Credit Losses: Provision for credit losses was $5.3 million reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. This resulted in an increase of five basis points in the allowance for loan credit losses to total loans to 0.78%. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the Company’s loan portfolio.

    Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect a meaningful expansion of net interest income and net interest margin, continued strong asset quality metrics, and further capital accretion, including share repurchases.” Mr. Maher added, “Additionally, we understand the increased market uncertainty and volatility, but we have confidence that the Company is well-positioned. Finally, we are pleased that the first quarter talent recruiting season has resulted in a robust addition of commercial banking talent. Reflecting the strength of the commercial banking platform we have built, 36 highly experienced commercial bankers have joined OceanFirst this year.”

    The Company’s Board of Directors declared its 113th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 16, 2025 to common stockholders of record on May 5, 2025. The Company’s Board of Directors also previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2025 to preferred stockholders of record on April 30, 2025. The Company has notified the preferred stockholders that it intends to redeem the Series A Preferred Stock in full on May 15, 2025.

    1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Results of Operations

    The current quarter was impacted by a decrease in average interest earning assets and liabilities, benefited from funding cost repricing efforts, and included a sale of non-performing residential and consumer loans of $5.1 million, which had related charge-offs of $720,000. Additionally, the current quarter included non-recurring benefits of $842,000 in other income and $1.3 million in normal incentive related adjustments.

    Net Interest Income and Margin

    Three months ended March 31, 2025 vs. March 31, 2024

    Net interest income increased to $86.7 million, from $86.2 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.90%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.03% and 0.04%, respectively. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in yield on average interest-earning assets.

    Average interest-earning assets decreased by $238.4 million primarily due to a decrease in commercial loans and securities. The average yield for interest-earning assets decreased to 5.13%, from 5.26%.

    The cost of average interest-bearing liabilities decreased to 2.78%, from 3.03%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 25 basis points to 2.06%, from 2.31%. Average interest-bearing liabilities decreased by $226.1 million, primarily due to decreases in savings, time deposits and other borrowings, largely offset by an increase in FHLB advances.

    Three months ended March 31, 2025 vs. December 31, 2024

    Net interest income increased by $3.3 million and net interest margin increased to 2.90%, from 2.69%, primarily reflecting the impact of deposit repricing. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.03% in the current quarter and none in the prior quarter.

    Average interest-earning assets decreased by $219.5 million, primarily due to decreases in securities and interest-earning cash deposits. The yield on average interest-earning assets decreased to 5.13%, from 5.15%.

    Average interest-bearing liabilities decreased by $211.3 million, primarily due to decreases in deposits and other borrowings, partly offset by an increase in FHLB advances. The total cost of average interest-bearing liabilities decreased to 2.78%, from 3.04%, primarily due to lower cost of deposits. The total cost of deposits decreased to 2.06%, from 2.32%.

    Provision for Credit Losses

    Provision for credit losses for the quarter ended March 31, 2025 was $5.3 million, as compared to $591,000 for the corresponding prior year period and $3.5 million for the linked quarter. The linked quarter included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden. The current quarter provision was primarily driven by elevated uncertainty around macroeconomic conditions.

    Net loan charge-offs were $636,000 for the quarter ended March 31, 2025, as compared to net loan charge-offs of $349,000 for the corresponding prior year period and net loan recoveries of $158,000 in the linked quarter. The current quarter includes charge-offs of $720,000 related to the sale of $5.1 million non-performing residential and consumer loans. Refer to “Results of Operations” section for further discussion.

    Non-interest Income

    Three months ended March 31, 2025 vs. March 31, 2024

    Other income decreased to $11.3 million, as compared to $12.3 million. Other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of the Company’s trust business.

    Excluding non-core operations, other income increased by $1.8 million. The primary drivers were increases related to net gain on sale of loans of $501,000, commercial loan swap income of $482,000, and an increase in non-recurring other income of $842,000 as noted above.

    Three months ended March 31, 2025 vs. December 31, 2024

    Excluding non-core operations, other income decreased by $1.2 million from $12.2 million in the linked quarter. The primary drivers were decreases in fees and service charges of $1.5 million, primarily due to lower title fee income as a result of seasonality, and income from bank owned life insurance of $686,000, related to non-recurring death benefits of $768,000 in the linked quarter. This was partly offset by increases in commercial loan swap income of $534,000 and non-recurring other income of $842,000 noted above.

    Non-interest Expense

    Three months ended March 31, 2025 vs. March 31, 2024

    Operating expenses increased to $64.3 million, as compared to $58.7 million. Operating expenses in the prior year were adversely impacted by non-core operations of $418,000 from an FDIC special assessment.

    Excluding non-core operations, operating expenses increased by $6.0 million. The primary driver was an increase in compensation and benefits of $4.0 million, mostly due to acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in other operating expenses of $1.0 million, due to additional loan servicing expense, and increases in data processing expense of $691,000, partly due to acquisitions at the end of the prior year.

    Three months ended March 31, 2025 vs. December 31, 2024

    Operating expenses in the linked quarter were $64.8 million and were adversely impacted by non-core items of $110,000 from merger-related expenses. Excluding non-core operations, operating expenses decreased by $445,000. This included a decrease in normal incentive related adjustments of $1.3 million, offset by annual merit increases during the year. Additionally, there were decreases in other operating expense of $840,000, mostly related to lower title costs and marketing of $507,000. This was partly offset by an increase in federal deposit insurance and regulatory assessments of $466,000.

    Income Tax Expense

    The provision for income taxes was $6.8 million for the quarter ended March 31, 2025, as compared to $10.6 million for the same prior year period and $5.1 million for the linked quarter. The effective tax rate was 24.1% for the quarter ended March 31, 2025, as compared to 27.1% for the same prior year period and 18.7% for the linked quarter. The prior year’s effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. The linked quarter’s effective tax rate was positively impacted by utilization of higher tax credits.

    Financial Condition

    March 31, 2025 vs. December 31, 2024

    Total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $81.3 million to $746.2 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $40.4 million to $1.01 billion, from $1.05 billion, primarily due to principal repayments. Loans held-for-sale decreased by $11.5 million to $9.7 million from $21.2 million. Total loans increased by $7.2 million to $10.13 billion, from $10.12 billion, while the loan pipeline increased by $197.8 million to $504.4 million, from $306.7 million. Other assets decreased by $14.9 million to $170.8 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

    Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, from $10.07 billion, primarily due to increases in non-interest bearing, savings and time deposits. Time deposits increased to $2.12 billion, from $2.08 billion, representing 20.8% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $295.8 million, offset by a decrease in retail time deposits of $251.1 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $181.6 million to $891.0 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

    Other liabilities decreased by $58.0 million to $240.4 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

    Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2025, including the Company’s estimated common equity tier one capital ratio which remained at 11.2%.

    Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. During the quarter ended March 31, 2025, the Company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The Company had 1,228,863 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

    The Company’s tangible common equity2 increased by $7.3 million to $1.12 billion. The Company’s stockholders’ equity to assets ratio was 12.84% at March 31, 2025, and tangible common equity to tangible assets ratio increased by 14 basis points during the quarter to 8.76%, primarily due to the drivers described above.

    Book value per common share increased to $29.27, as compared to $29.08. Tangible book value per common share2 increased to $19.16, as compared to $18.98.

    2 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Asset Quality

    March 31, 2025 vs. December 31, 2024

    The Company’s non-performing loans increased to $37.0 million, from $35.5 million, and represented 0.37% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 213.14%, as compared to 207.19%. The level of 30 to 89 days delinquent loans increased to $46.2 million, from $36.6 million, primarily related to commercial loans. Criticized and classified assets, including other real estate owned, decreased to $151.2 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to “Provision for Credit Losses” section for further discussion.

    The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $29.2 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 269.43%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $35.8 million, from $33.6 million.

    Explanation of Non-GAAP Financial Measures

    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, 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. 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, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

    Annual Meeting

    The Company previously announced that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com – Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2025 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

    Conference Call

    As previously announced, the Company will host an earnings conference call on Friday, April 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 934356. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (855) 762-8306, from one hour after the end of the call until May 2, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com

    Forward-Looking Statements

    In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A – Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

     
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (dollars in thousands)
     
        March 31,   December 31,   March 31,
          2025       2024       2024  
        (Unaudited)       (Unaudited)
    Assets            
    Cash and due from banks   $ 163,721     $ 123,615     $ 130,422  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses of $898 at March 31, 2025, $967 at December 31, 2024, and $1,058 at March 31, 2024 (estimated fair value of $926,075 at March 31, 2025, $952,917 at December 31, 2024, and $1,029,965 at March 31, 2024)     1,005,476       1,045,875       1,128,666  
    Equity investments     87,365       84,104       103,201  
    Restricted equity investments, at cost     102,172       108,634       85,689  
    Loans receivable, net of allowance for loan credit losses of $78,798 at March 31, 2025, $73,607 at December 31, 2024, and $67,173 at March 31, 2024     10,058,072       10,055,429       10,068,209  
    Loans held-for-sale     9,698       21,211       4,702  
    Interest and dividends receivable     44,843       45,914       52,502  
    Other real estate owned     1,917       1,811        
    Premises and equipment, net     114,588       115,256       119,211  
    Bank owned life insurance     269,398       270,208       266,615  
    Assets held for sale                 28  
    Goodwill     523,308       523,308       506,146  
    Intangibles     11,740       12,680       8,669  
    Other assets     170,812       185,702       199,974  
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    Liabilities and Stockholders’ Equity            
    Deposits   $ 10,177,023     $ 10,066,342     $ 10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       658,436  
    Securities sold under agreements to repurchase with customers     65,132       60,567       66,798  
    Other borrowings     197,808       197,546       425,722  
    Advances by borrowers for taxes and insurance     28,789       23,031       28,187  
    Other liabilities     240,388       298,393       337,147  
    Total liabilities     11,600,161       11,718,490       11,753,141  
    Stockholders’ equity:            
    OceanFirst Financial Corp. stockholders’ equity     1,708,322       1,701,650       1,665,112  
    Non-controlling interest     795       1,107       725  
    Total stockholders’ equity     1,709,117       1,702,757       1,665,837  
    Total liabilities and stockholders’ equity   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except per share amounts)
     
        For the Three Months Ended,
        March 31,   December 31,   March 31,
          2025       2024       2024  
        |———————- (Unaudited) ———————-|
    Interest income:            
    Loans   $ 133,019     $ 135,438     $ 137,121  
    Debt securities     17,270       19,400       19,861  
    Equity investments and other     3,414       4,782       4,620  
    Total interest income     153,703       159,620       161,602  
    Interest expense:            
    Deposits     51,046       59,889       59,855  
    Borrowed funds     16,005       16,402       15,523  
    Total interest expense     67,051       76,291       75,378  
    Net interest income     86,652       83,329       86,224  
    Provision for credit losses     5,340       3,467       591  
    Net interest income after provision for credit losses     81,312       79,862       85,633  
    Other income:            
    Bankcard services revenue     1,463       1,595       1,416  
    Trust and asset management revenue     406       416       526  
    Fees and service charges     4,712       6,207       4,473  
    Net gain on sales of loans     858       1,076       357  
    Net gain (loss) on equity investments     205       (5 )     1,923  
    Net loss from other real estate operations     (16 )     (20 )      
    Income from bank owned life insurance     1,852       2,538       1,862  
    Commercial loan swap income     620       86       138  
    Other     1,153       339       1,591  
    Total other income     11,253       12,232       12,286  
    Operating expenses:            
    Compensation and employee benefits     36,740       36,602       32,759  
    Occupancy     5,497       5,280       5,199  
    Equipment     921       1,026       1,130  
    Marketing     1,108       1,615       990  
    Federal deposit insurance and regulatory assessments     2,983       2,517       3,135  
    Data processing     6,647       6,366       5,956  
    Check card processing     1,170       1,134       1,050  
    Professional fees     2,425       2,620       2,732  
    Amortization of intangibles     940       876       844  
    Merger related expenses           110        
    Other operating expense     5,863       6,703       4,877  
    Total operating expenses     64,294       64,849       58,672  
    Income before provision for income taxes     28,271       27,245       39,247  
    Provision for income taxes     6,808       5,083       10,637  
    Net income     21,463       22,162       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       (57 )
    Net income attributable to OceanFirst Financial Corp.     21,509       21,909       28,667  
    Dividends on preferred shares     1,004       1,004       1,004  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 27,663  
    Basic earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Average basic shares outstanding     58,102       58,026       58,789  
    Average diluted shares outstanding     58,111       58,055       58,791  
    OceanFirst Financial Corp.
    SELECTEDLOANAND DEPOSIT DATA
    (dollars in thousands)
     
    LOANS RECEIVABLE   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Commercial:                    
    Commercial real estate – investor   $ 5,200,137     $ 5,287,683     $ 5,273,159     $ 5,324,994     $ 5,322,755  
    Commercial and industrial:                    
    Commercial and industrial – real estate (1)     896,647       902,219       841,930       857,710       914,582  
    Commercial and industrial – non-real estate (1)     748,575       647,945       660,879       616,400       677,176  
    Total commercial and industrial     1,645,222       1,550,164       1,502,809       1,474,110       1,591,758  
        Total commercial     6,845,359       6,837,847       6,775,968       6,799,104       6,914,513  
    Consumer:                    
    Residential real estate     3,053,318       3,049,763       3,003,213       2,977,698       2,965,276  
    Home equity loans and lines and other consumer (“other consumer”)     226,633       230,462       242,975       242,526       245,859  
        Total consumer     3,279,951       3,280,225       3,246,188       3,220,224       3,211,135  
        Total loans     10,125,310       10,118,072       10,022,156       10,019,328       10,125,648  
    Deferred origination costs (fees), net     11,560       10,964       10,508       10,628       9,734  
    Allowance for loan credit losses     (78,798 )     (73,607 )     (69,066 )     (68,839 )     (67,173 )
        Loans receivable, net   $ 10,058,072     $ 10,055,429     $ 9,963,598     $ 9,961,117     $ 10,068,209  
    Mortgage loans serviced for others   $ 222,963     $ 191,279     $ 142,394     $ 104,136     $ 89,555  
      At March 31, 2025 Average Yield                    
    Loan pipeline (2):                      
    Commercial 7.37 %   $ 375,622     $ 197,491     $ 199,818     $ 166,206     $ 66,167  
    Residential real estate 6.41       116,121       97,385       137,978       80,330       57,340  
    Other consumer 8.51       12,681       11,783       13,788       12,586       13,030  
    Total 7.18 %   $ 504,424     $ 306,659     $ 351,584     $ 259,122     $ 136,537  
      For the Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
      2025     2024       2024       2024       2024  
      Average Yield                    
    Loan originations:                      
    Commercial (3) 7.61 %   $ 233,968     $ 268,613     $ 245,886     $ 56,053     $ 123,010  
    Residential real estate 6.53       167,162       235,370       169,273       121,388       78,270  
    Other consumer 8.49       15,825       11,204       15,760       16,970       11,405  
    Total 7.21 %   $ 416,955     $ 515,187     $ 430,919     $ 194,411     $ 212,685  
    Loans sold     $ 104,991    (4) $ 127,508     $ 65,296     $ 45,045     $ 29,965  
    (1) During the quarter ended March 31, 2025, the Company retrospectively reclassified loans which were previously referred to as ‘commercial real estate – owner occupied’ and ‘commercial and industrial’ to ‘commercial and industrial – real estate’ and ‘commercial and industrial – non-real estate’, respectively. Collectively, these loans are referred to as ‘commercial and industrial’.
    (2) Loan pipeline includes loans approved but not funded.
    (3) Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    (4) Excludes sale of non-performing residential and consumer loans of $5.1 million for the three months ended March 31, 2025.

     

    DEPOSITS   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Type of Account                    
    Non-interest-bearing   $ 1,660,738     $ 1,617,182     $ 1,638,447     $ 1,632,521     $ 1,639,828  
    Interest-bearing checking     4,006,653       4,000,553       3,896,348       3,667,837       3,865,699  
    Money market     1,337,570       1,301,197       1,288,555       1,210,312       1,150,979  
    Savings     1,052,504       1,066,438       1,071,946       1,115,688       1,260,309  
    Time deposits (1)     2,119,558       2,080,972       2,220,871       2,367,659       2,320,036  
    Total deposits   $ 10,177,023     $ 10,066,342     $ 10,116,167     $ 9,994,017     $ 10,236,851  
    (1) Includes brokered time deposits of $370.5 million, $74.7 million, $201.0 million, $401.6 million, and $543.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

     

    OceanFirst Financial Corp.
    ASSET QUALITY
    (dollars in thousands)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
    ASSET QUALITY(1)     2025       2024       2024       2024       2024  
    Non-performing loans:                    
    Commercial real estate – investor   $ 23,595     $ 17,000     $ 12,478     $ 19,761     $ 21,507  
    Commercial and industrial:                    
    Commercial and industrial – real estate     4,690       4,787       4,368       4,081       3,355  
    Commercial and industrial – non-real estate     22       32       122       434       567  
    Total commercial and industrial     4,712       4,819       4,490       4,515       3,922  
    Residential real estate     5,709       10,644       9,108       7,213       7,181  
    Other consumer     2,954       3,064       2,063       1,933       2,401  
    Total non-performing loans(1)   $ 36,970     $ 35,527     $ 28,139     $ 33,422     $ 35,011  
    Other real estate owned     1,917       1,811                    
    Total non-performing assets   $ 38,887     $ 37,338     $ 28,139     $ 33,422     $ 35,011  
    Delinquent loans 30 to 89 days   $ 46,246     $ 36,550     $ 15,458     $ 9,655     $ 17,534  
    Modifications to borrowers experiencing financial difficulty(2)                    
    Non-performing (included in total non-performing loans above)   $ 8,307     $ 3,232     $ 3,043     $ 3,210     $ 3,467  
    Performing     27,592       27,631       20,652       20,529       8,579  
    Total modifications to borrowers experiencing financial difficulty(2)   $ 35,899     $ 30,863     $ 23,695     $ 23,739     $ 12,046  
    Allowance for loan credit losses   $ 78,798     $ 73,607     $ 69,066     $ 68,839     $ 67,173  
    Allowance for loan credit losses as a percent of total loans receivable(3)     0.78 %     0.73 %     0.69 %     0.69 %     0.66 %
    Allowance for loan credit losses as a percent of total non-performing loans(3)     213.14       207.19       245.45       205.97       191.86  
    Non-performing loans as a percent of total loans receivable     0.37       0.35       0.28       0.33       0.35  
    Non-performing assets as a percent of total assets     0.29       0.28       0.21       0.25       0.26  
    Supplemental PCD and non-performing loans                    
    PCD loans, net of allowance for loan credit losses   $ 21,737     $ 22,006     $ 15,323     $ 16,058     $ 16,700  
    Non-performing PCD loans     7,724       7,931       2,887       2,841       3,525  
    Delinquent PCD and non-performing loans 30 to 89 days     10,489       2,997       1,279       1,188       2,088  
    PCD modifications to borrowers experiencing financial difficulty(2)     22       23       24       26       25  
    Asset quality, excluding PCD loans(4)                    
    Non-performing loans(1)     29,246       27,596       25,252       30,581       31,486  
    Non-performing assets     31,163       29,407       25,252       30,581       31,486  
    Delinquent loans 30 to 89 days (excludes non-performing loans)     35,757       33,553       14,179       8,467       15,446  
    Modifications to borrowers experiencing financial difficulty(2)     35,877       30,840       23,671       23,713       12,021  
    Allowance for loan credit losses as a percent of total non-performing loans(3)     269.43 %     266.73 %     273.51 %     225.10 %     213.34 %
    Non-performing loans as a percent of total loans receivable     0.29       0.27       0.25       0.31       0.31  
    Non-performing assets as a percent of total assets     0.23       0.22       0.19       0.23       0.23  
    (1) The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $5.1 million and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.
    (2) Balances have been revised to represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023.
    (3) Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.6 million, $6.0 million, $5.7 million, $6.1 million and $7.0 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
    (4) All balances and ratios exclude PCD loans.
    NET LOAN (CHARGE-OFFS) RECOVERIES   For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Net loan (charge-offs) recoveries:                    
    Loan charge-offs   $ (798 )   $ (55 )   $ (124 )   $ (1,600 )   $ (441 )
    Recoveries on loans     162       213       212       148       92  
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    Net loan (charge-offs) recoveries to average total loans (annualized)     0.03 %     NM *     NM *     0.06 %     0.01 %
    Net loan (charge-offs) recoveries detail:                    
    Commercial   $ 25     $ 92     $ 129     $ (1,576 ) (1) $ (35 )
    Residential real estate     (720 ) (2)   (17 )     (6 )     87       66  
    Other consumer     59       83       (35 )     37       (380 )
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    (1) The three months ended June 30, 2024 included a charge-off related to a single commercial real estate relationship of $1.6 million.
    (2) The three months ended March 31, 2025 included charge-offs of $720,000 related to the sale of non-performing residential loans.
    * Not meaningful as amounts are net loan recoveries.

     

    OceanFirst Financial Corp.
    ANALYSIS OF NET INTEREST INCOME
     
        For the Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
    (dollars in thousands)   Average
    Balance
      Interest   Average
    Yield/
    Cost (1)
      Average
    Balance
      Interest   Average
    Yield/
    Cost (1)
      Average
    Balance
      Interest   Average
    Yield/
    Cost (1)
    Assets:                                    
    Interest-earning assets:                                    
    Interest-earning deposits and short-term investments   $ 95,439     $ 983   4.18 %   $ 195,830     $ 2,415   4.91 %   $ 163,192     $ 2,226   5.49 %
    Securities (2)     2,003,206       19,701   3.99       2,116,911       21,767   4.09       2,098,421       22,255   4.27  
    Loans receivable, net (3)                                    
    Commercial     6,781,005       98,260   5.88       6,794,158       101,003   5.91       6,925,048       104,421   6.06  
    Residential real estate     3,065,679       31,270   4.08       3,049,092       30,455   4.00       2,974,468       28,596   3.85  
    Other consumer     228,553       3,489   6.19       236,161       3,980   6.70       248,396       4,104   6.65  
    Allowance for loan credit losses, net of deferred loan costs and fees     (61,854 )             (60,669 )             (59,141 )        
    Loans receivable, net     10,013,383       133,019   5.37       10,018,742       135,438   5.38       10,088,771       137,121   5.46  
    Total interest-earning assets     12,112,028       153,703   5.13       12,331,483       159,620   5.15       12,350,384       161,602   5.26  
    Non-interest-earning assets     1,199,865               1,213,569               1,206,336          
    Total assets   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Liabilities and Stockholders’ Equity:                                    
    Interest-bearing liabilities:                                    
    Interest-bearing checking   $ 4,135,952       21,433   2.10 %   $ 4,050,428       22,750   2.23 %   $ 3,925,965       20,795   2.13 %
    Money market     1,322,003       9,353   2.87       1,325,119       10,841   3.25       1,092,003       9,172   3.38  
    Savings     1,058,015       1,785   0.68       1,070,816       2,138   0.79       1,355,718       4,462   1.32  
    Time deposits     1,916,109       18,475   3.91       2,212,750       24,160   4.34       2,414,063       25,426   4.24  
    Total     8,432,079       51,046   2.46       8,659,113       59,889   2.75       8,787,749       59,855   2.74  
    FHLB Advances     996,293       11,359   4.62       854,748       10,030   4.67       644,818       7,771   4.85  
    Securities sold under agreements to repurchase     64,314       428   2.70       76,856       513   2.66       68,500       411   2.41  
    Other borrowings     283,150       4,218   6.04       396,412       5,859   5.88       500,901       7,341   5.89  
    Total borrowings     1,343,757       16,005   4.83       1,328,016       16,402   4.91       1,214,219       15,523   5.14  
    Total interest-bearing liabilities     9,775,836       67,051   2.78       9,987,129       76,291   3.04       10,001,968       75,378   3.03  
    Non-interest-bearing deposits     1,597,972               1,627,376               1,634,583          
    Non-interest-bearing liabilities     222,951               227,221               247,129          
    Total liabilities     11,596,759               11,841,726               11,883,680          
    Stockholders’ equity     1,715,134               1,703,326               1,673,040          
    Total liabilities and equity   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Net interest income       $ 86,652           $ 83,329           $ 86,224    
    Net interest rate spread (4)           2.35 %           2.11 %           2.23 %
    Net interest margin (5)           2.90 %           2.69 %           2.81 %
    Total cost of deposits (including non-interest-bearing deposits)           2.06 %           2.32 %           2.31 %
    (1) Average yields and costs are annualized.
    (2) Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
    (3) Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
    (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income divided by average interest-earning assets.

     

    OceanFirst Financial Corp.
    SELECTED QUARTERLY FINANCIAL DATA
    (in thousands, except per share amounts)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Financial Condition Data:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       911,753       721,484       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses     1,005,476       1,045,875       1,075,131       1,105,843       1,128,666  
    Equity investments     87,365       84,104       95,688       104,132       103,201  
    Restricted equity investments, at cost     102,172       108,634       98,545       92,679       85,689  
    Loans receivable, net of allowance for loan credit losses     10,058,072       10,055,429       9,963,598       9,961,117       10,068,209  
    Deposits     10,177,023       10,066,342       10,116,167       9,994,017       10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       891,860       789,337       658,436  
    Securities sold under agreements to repurchase and other borrowings     262,940       258,113       501,090       504,490       492,520  
    Total stockholders’ equity     1,709,117       1,702,757       1,694,508       1,676,669       1,665,837  
        For the Three Months Ended,
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Operating Data:                    
    Interest income   $ 153,703     $ 159,620     $ 161,525     $ 159,426     $ 161,602  
    Interest expense     67,051       76,291       79,306       77,163       75,378  
    Net interest income     86,652       83,329       82,219       82,263       86,224  
    Provision for credit losses (excluding Spring Garden)     5,340       2,041       517       3,114       591  
    Spring Garden opening provision for credit losses           1,426                    
    Net interest income after provision for credit losses     81,312       79,862       81,702       79,149       85,633  
    Other income (excluding equity investments and sale of trust)     11,048       12,237       11,826       10,098       9,201  
    Net gain (loss) on equity investments     205       (5 )     1,420       887       1,923  
    Net gain on sale of trust business                 1,438             1,162  
    Operating expenses (excluding FDIC special assessment and merger related expenses)     64,294       64,739       62,067       58,620       58,254  
    FDIC special assessment                             418  
    Merger related expenses           110       1,669              
    Income before provision for income taxes     28,271       27,245       32,650       31,514       39,247  
    Provision for income taxes     6,808       5,083       7,464       7,082       10,637  
    Net income     21,463       22,162       25,186       24,432       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       70       59       (57 )
    Net income attributable to OceanFirst Financial Corp.   $ 21,509     $ 21,909     $ 25,116     $ 24,373     $ 28,667  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.42     $ 0.40     $ 0.47  
    Net accretion/amortization of purchase accounting adjustments included in net interest income   $ 219     $ 20     $ 741     $ 1,086     $ 921  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
        2025   2024   2024   2024   2024
    Selected Financial Ratios and Other Data (1) (2):                    
    Performance Ratios (Annualized):                    
    Return on average assets (3)   0.62 %   0.61 %   0.71 %   0.70 %   0.82 %
    Return on average tangible assets (3) (4)   0.65     0.64     0.74     0.73     0.85  
    Return on average stockholders’ equity (3)   4.85     4.88     5.68     5.61     6.65  
    Return on average tangible stockholders’ equity (3) (4)   7.05     7.12     8.16     8.10     9.61  
    Return on average tangible common equity (3) (4)   7.40     7.47     8.57     8.51     10.09  
    Stockholders’ equity to total assets   12.84     12.69     12.56     12.59     12.41  
    Tangible stockholders’ equity to tangible assets (4)   9.19     9.06     9.10     9.08     8.92  
    Tangible common equity to tangible assets (4)   8.76     8.62     8.68     8.64     8.49  
    Net interest rate spread   2.35     2.11     2.06     2.11     2.23  
    Net interest margin   2.90     2.69     2.67     2.71     2.81  
    Operating expenses to average assets   1.96     1.90     1.89     1.75     1.74  
    Efficiency ratio (5)   65.67     67.86     65.77     62.86     59.56  
    Loan-to-deposit ratio   99.50     100.50     99.10     100.30     98.90  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Trust and Asset Management:                    
    Wealth assets under administration and management (“AUA/M”)   $ 149,106     $ 147,956     $ 152,797     $ 150,519     $ 236,891  
    Nest Egg AUA/M     453,803       431,434       430,413       403,647       407,478  
    Total AUA/M     602,909       579,390       583,210       554,166       644,369  
    Per Share Data:                    
    Cash dividends per common share   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20  
    Book value per common share at end of period     29.27       29.08       29.02       28.67       28.32  
    Tangible book value per common share at end of period (4)     19.16       18.98       19.28       18.93       18.63  
    Common shares outstanding at end of period     58,383,525       58,554,871       58,397,094       58,481,418       58,812,498  
    Preferred shares outstanding at end of period     57,370       57,370       57,370       57,370       57,370  
    Number of full-service customer facilities:     39       39       39       39       39  
    Quarterly Average Balances                    
    Total securities   $ 2,003,206     $ 2,116,911     $ 2,063,633     $ 2,058,711     $ 2,098,421  
    Loans receivable, net     10,013,383       10,018,742       9,958,794       10,012,491       10,088,771  
    Total interest-earning assets     12,112,028       12,331,483       12,232,672       12,203,776       12,350,384  
    Total goodwill and intangibles     535,657       534,942       513,731       514,535       515,356  
    Total assets     13,311,893       13,545,052       13,438,696       13,441,218       13,556,720  
    Time deposits     1,916,109       2,212,750       2,339,370       2,337,458       2,414,063  
    Total deposits (including non-interest-bearing deposits)     10,030,051       10,286,489       10,175,856       10,173,315       10,422,332  
    Total borrowings     1,343,757       1,328,016       1,333,245       1,325,372       1,214,219  
    Total interest-bearing liabilities     9,775,836       9,987,129       9,874,358       9,872,522       10,001,968  
    Non-interest bearing deposits     1,597,972       1,627,376       1,634,743       1,626,165       1,634,583  
    Stockholders’ equity     1,715,134       1,703,326       1,689,035       1,674,453       1,673,040  
    Tangible stockholders’ equity (4)     1,179,477       1,168,384       1,175,304       1,159,918       1,157,684  
                         
    Quarterly Yields and Costs                    
    Total securities     3.99 %     4.09 %     4.23 %     4.22 %     4.27 %
    Loans receivable, net     5.37       5.38       5.46       5.46       5.46  
    Total interest-earning assets     5.13       5.15       5.26       5.25       5.26  
    Time deposits     3.91       4.34       4.58       4.46       4.24  
    Total cost of deposits (including non-interest-bearing deposits)     2.06       2.32       2.44       2.37       2.31  
    Total borrowed funds     4.83       4.91       5.07       5.19       5.14  
    Total interest-bearing liabilities     2.78       3.04       3.20       3.14       3.03  
    Net interest spread     2.35       2.11       2.06       2.11       2.23  
    Net interest margin     2.90       2.69       2.67       2.71       2.81  
    (1) With the exception of end of quarter ratios, all ratios are based on average daily balances.
    (2) Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
    (3) Ratios for each period are based on net income available to common stockholders.
    (4) Tangible stockholders’ equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, intangibles and preferred equity. Refer to “Non-GAAP Reconciliation.”
    (5) Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.
    OceanFirst Financial Corp.
    OTHER ITEMS
    (dollars in thousands, except per share amounts)
     
    NON-GAAP RECONCILIATION
     
        For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Core Earnings:                    
    Net income available to common stockholders (GAAP)   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    (Less) add non-recurring and non-core items:                    
    Spring Garden opening provision for credit losses           1,426                    
    Net (gain) loss on equity investments     (205 )     5       (1,420 )     (887 )     (1,923 )
    Net gain on sale of trust business                 (1,438 )           (1,162 )
    FDIC special assessment                             418  
    Merger related expenses           110       1,669              
    Income tax expense (benefit) on items     49       (388 )     270       188       642  
    Core earnings (Non-GAAP)   $ 20,349     $ 22,058     $ 23,193     $ 22,670     $ 25,638  
    Income tax expense   $ 6,808     $ 5,083     $ 7,464     $ 7,082     $ 10,637  
    Provision for credit losses     5,340       3,467       517       3,114       591  
    Less: non-core provision for credit losses           1,426                    
    Less: income tax expense (benefit) on non-core items     49       (388 )     270       188       642  
    Core earnings PTPP (Non-GAAP)   $ 32,448     $ 29,570     $ 30,904     $ 32,678     $ 36,224  
    Core earnings diluted earnings per share   $ 0.35     $ 0.38     $ 0.39     $ 0.39     $ 0.44  
    Core earnings PTPP diluted earnings per share   $ 0.56     $ 0.51     $ 0.53     $ 0.56     $ 0.62  
                         
    Core Ratios (Annualized):                    
    Return on average assets     0.62 %     0.65 %     0.69 %     0.68 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       7.85       7.86       8.91  
    Return on average tangible common equity     7.34       7.89       8.24       8.26       9.36  
    Efficiency ratio     65.81       67.74       66.00       63.47       61.05  
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Tangible Equity:                    
    Total stockholders’ equity   $ 1,709,117     $ 1,702,757     $ 1,694,508     $ 1,676,669     $ 1,665,837  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible stockholders’ equity     1,174,069       1,166,769       1,181,306       1,162,664       1,151,022  
    Less:                    
    Preferred stock     55,527       55,527       55,527       55,527       55,527  
    Tangible common equity   $ 1,118,542     $ 1,111,242     $ 1,125,779     $ 1,107,137     $ 1,095,495  
                         
    Tangible Assets:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible assets   $ 12,774,230     $ 12,885,259     $ 12,975,281     $ 12,807,750     $ 12,904,163  
                         
    Tangible stockholders’ equity to tangible assets     9.19 %     9.06 %     9.10 %     9.08 %     8.92 %
    Tangible common equity to tangible assets     8.76 %     8.62 %     8.68 %     8.64 %     8.49 %


    C
    ompany Contact:

    Patrick S. Barrett
    Chief Financial Officer
    OceanFirst Financial Corp.
    Tel: (732) 240-4500, ext. 27507
    Email: pbarrett@oceanfirst.com

    The MIL Network

  • MIL-OSI USA: Senator Reverend Warnock Hosts Passport Services Day in Atlanta

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia
    Senator Reverend Warnock’s constituent services team partnered with the Atlanta Passport Agency to assist with passport renewals and first-time applicants
    The one-day-only event helped 163 Georgians receive passport services
    Event is latest effort by Senator Reverend Warnock and his office to provide quality, accessible, and personable constituent services
    Atlanta, GA – Today, U.S. Senator Reverend Raphael Warnock (D-GA) hosted an in-person Passport Services Day in Atlanta, Georgia in conjunction with the Atlanta Passport Agency. Staff from Senator Warnock’s office and the Atlanta Passport Agency assisted 163 Georgians with passport renewals, and helped first-time applicants take the needed steps to obtain a passport. 
    “As a Senator for all Georgians, providing Georgians with quality, accessible, and personable constituent services will always be a top priority for me. Georgians in need of passport services or other federal inquiries should contact my office to see how we may be of service to you,” said Senator Reverend Warnock.
    With summer travel around the corner, this event aimed to bridge the gap between federal resources and communities across the metro-Atlanta area. In May 2024, Senator Warnock hosted his inaugural Passport Services Day, helping over 100 Georgians with passport renewals or first-time applications. In 2023, amid a historic, post-pandemic spike in passport applications that caused delays and disruptions to Georgians planning to travel internationally, Senator Warnock’s office assisted over 2,800 Georgians seeking passport assistance.

    MIL OSI USA News

  • MIL-OSI Economics: Zoom still faces challenging environment despite its profound metamorphosis, says GlobalData

    Source: GlobalData

    Zoom still faces challenging environment despite its profound metamorphosis, says GlobalData

    Posted in Technology

    Zoom has announced new and upcoming features for the Workplace platform powered by both generative AI (GenAI) and agentic AI. The volume, breadth, and quality of features unveiled are impressive. Collectively, the changes further propel a dramatic transformation that has been taking place at Zoom over roughly the past year and a half. Despite the dramatic transformation Zoom has made in relatively short order, the company still faces a challenging environment, according to GlobalData, a leading data and analytics company.

    Gregg Willsky, Principal Analyst, Enterprise Technology & Services at GlobalData, comments: “After its video meetings capability became renowned virtually overnight in the dark, nascent days of the COVID-19 pandemic, Zoom ignited a steady evolution of its platform. With the October 2023 introduction of Zoom AI Companion, that evolution followed a sharp trajectory upward and morphed into a full-blown renaissance marked by the introduction of GenAI features. Zoom has now entered a new chapter with the announcement of agentic AI capabilities.”

    Two noteworthy examples of agentic AI features are the Custom AI Companion add-on and Zoom Tasks with AI Companion. The Custom AI Companion add-on is intriguing because it enables organizations to tailor Zoom AI Companion to fit the specific needs of their business or industry. The greatest value of Zoom Tasks with AI Companion lies in its ability to make users more productive by automatically detecting tasks from meeting summaries, chats, and emails and completing them on their behalf.

    Willsky continues: “In addition to team collaboration capabilities evident in the Custom AI Companion add-on and Zoom Tasks with AI Companion, Zoom displayed sharp dexterity and diversity with features that touch upon a range of additional areas including contact center, sales, and industry verticals.

    “New features allow contact center supervisors to optimize staffing levels and permit agents to indicate preferred start times. Revenue Accelerator enhancements help sales reps identify and manage deals more efficiently. Frontline workers in industries such as retail and manufacturing, along with healthcare clinicians, have access to features that increase their efficiency by saving time.”

    Zoom confronts entrenched, imposing players such as Microsoft, Cisco, and Google while also tangling with wholly capable rivals such as RingCentral and 8×8.

    Willsky concludes: “Like Zoom, each is aggressively fortifying their platforms and spreading enhancements across collaboration, contact center, and other areas. What makes Zoom unique, however, is that it has managed to widely distance itself from its original, narrow identity – that of a video platform – and done so in only a handful of years. That bodes well for its future.”

    MIL OSI Economics

  • MIL-OSI Asia-Pac: India Achieves Breakthrough in Gene Therapy for Haemophilia, Dr. Jitendra Singh Reviews BRIC-inStem Trials

    Source: Government of India

    India Achieves Breakthrough in Gene Therapy for Haemophilia, Dr. Jitendra Singh Reviews BRIC-inStem Trials

    “Not Just Science, It’s Nation-Building”: Minister Hails Biotech’s Role in Future Economy

    From Lab to Life: Bengaluru’s BRIC-inStem Leads India’s Bio-Revolution with Gene Therapy, Regenerative Science

    Posted On: 24 APR 2025 4:30PM by PIB Delhi

    Union Minister of State (Independent Charge) for Science and Technology; Earth Sciences and Minister of State for PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Dr. Jitendra Singh inspected the various facilities at BRIC-inStem and reviewed ongoing clinical trials in collaboration with premier medical institutes and hospitals, including the landmark first-in-human gene therapy trial for Haemophilia conducted with CMC Vellore. Calling it a “milestone in India’s scientific journey,” the Minister hailed the institute’s contributions to preventive and regenerative healthcare.

    During his visit, Dr. Jitendra Singh underscored the strategic importance of biotechnology in shaping India’s future economy and public health infrastructure. “This is not just about science—it’s about nation-building,” he said, commending the Department of Biotechnology’s (DBT) recent successes and its emergence from relative obscurity into national relevance.

    India’s biotechnology sector has seen an extraordinary leap, growing 16-fold in the past decade to reach $165.7 billion in 2024, with a vision to touch $300 billion by 2030. The Minister credited this growth to enabling policy reforms, including the recently approved BIO-E3 Policy that aims to boost economy, employment, and environment through biotechnology. “We now have over 10,000 biotech startups compared to just 50 a decade ago,” he pointed out.

    Dr. Jitendra Singh praised the creation of the Biotechnology Research and Innovation Council (BRIC) that unified 14 autonomous institutions under one umbrella. “BRIC-inStem is at the cutting edge of fundamental and translational science,” he said, highlighting innovations like the germicidal anti-viral mask during the COVID-19 pandemic and the ‘Kisan Kavach’ that protects farmers from neurotoxic pesticides.

     

    A highlight of the visit was BRIC-inStem’s Biosafety Level III laboratory, a key national facility for studying high-risk pathogens under India’s One Health Mission. “The recent pandemic taught us that we must always be prepared. Facilities like this will help us stay a step ahead,” Dr. Jitendra Singh stated.

    The Minister also praised the newly launched Centre for Research Application and Training in Embryology (CReATE), which addresses birth defects and infertility by advancing developmental biology research. “With about 3 to 4 percent of babies born with some form of defect, this centre is vital for improving maternal and neonatal health outcomes,” he said.

    Calling for greater collaboration between scientific and medical institutions, he suggested that BRIC-inStem explore MD-PhD programs, integrate more with clinical research, and enhance visibility through coordinated communication strategies. “What’s being done here should echo across the country—not for publicity, but because the nation needs it,” he said.

    Dr. Jitendra Singh concluded by noting that India’s economy of the future would be bio-driven, with institutions like BRIC-inStem serving as torchbearers of this transformation. “As Mark Twain said, the economy is too serious a subject to be left to economists alone. Biotechnology is not just a science anymore—it is a pillar of our national strategy.”

     

    *****

    NKR/PSM

    (Release ID: 2124073) Visitor Counter : 18

    MIL OSI Asia Pacific News

  • MIL-OSI Security: Federal Law Enforcement Officer Arrested for Allegedly Fraudulently Obtaining COVID-19 Business-Relief Funds for Shell Companies

    Source: Office of United States Attorneys

    LOS ANGELES – A United States Customs and Border Protection (CBP) officer has been arrested on a five-count federal grand jury indictment alleging he fraudulently obtained nearly $150,000 in COVID-19 pandemic business-relief loan funds for two of his sham businesses, the Justice Department announced today.

    Amer Aldarawsheh, 45, of Moreno Valley, is charged with five counts of wire fraud.

    He was arrested Wednesday morning and pleaded not guilty to all the charges against him at his arraignment Wednesday afternoon in United States District Court in downtown Los Angeles. A federal magistrate judge ordered Aldarawsheh released on $30,000 bond and scheduled a June 16 in U.S. District Court in Riverside.

    According to the indictment unsealed Wednesday, Aldarawsheh owned and purportedly operated two businesses:  Nahar Enterprises Inc., a San Bernardino based business he described as a trucking and freight company, and Ameral, which he described as an automotive repair company.

    From July 2020 to December 2021, Aldarawsheh made false statements to the Small Business Administration (SBA) to fraudulently obtain a loan under the Economic Injury Disaster Loan Program (EIDL), which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 authorized the SBA to provide EIDL loans of up to $2 million to eligible small businesses experiencing substantial financial disruption during the COVID-19 pandemic.

    Aldarawsheh applied to the SBA for EIDL loans on behalf of his two companies, neither of which had substantial business or employees. EIDL loans were supposed to be used by the recipient to only pay certain authorized business expenses.   Instead, Aldarawsheh knowingly misappropriated and misused the EIDL funds he received from the SBA for his own personal benefit, including in December 2020, causing the transfer of $149,900 in SBA COVID-19 EIDL loan funds to be wired from the SBA to a bank account under his control.

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

    If convicted, Aldarawsheh would face a statutory maximum sentence of 20 years in federal prison for each count.

    The United States Custom and Border Protection Office of Professional Responsibility, Small Business Administration Office of Inspector General, and Federal Bureau of Investigation investigated this matter.

    Assistant United States Attorneys Laura A. Alexander and Michael J. Morse of the Public Corruption and Civil Rights Section are prosecuting this case.

    MIL Security OSI

  • MIL-OSI Security: Miramar Mayoral Candidate Pleads Guilty to Covid-19 Relief Fraud

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

    MIAMI – The owner of Theophin Consulting LLC has pleaded guilty to wire fraud for fraudulently obtaining Covid-19 relief loan proceeds under the Paycheck Protection Program (“PPP”) program.

    Rudy Theophin, 41, of Miramar, Fla., was the president and sole owner of Theophin Consulting LLC. In June 2020, Theophin submitted an online PPP loan application for $123,675 through the U.S. Small Business Administration (SBA) to provide relief for the economic effect caused by the Covid-19 pandemic. The loan application and supporting documentation falsely stated the number of employees and the average monthly payroll for Theophin Consulting. Once approved, Theophin transferred a portion of the funds to another person, another portion to an investment account in his name, and he used the remaining funds toward the purchase of a condominium. Theophin ran for mayor of Miramar in 2023.

    A sentencing hearing is set on July 15 in Fort Lauderdale before U.S. District Court Judge Rodney Smith. Theophin faces up to 20 years in prison.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.

    IRS-CI investigated the case. Assistant U.S. Attorney Christopher Killoran is prosecuting the case. Assistant U.S. Attorney Jorge Delgado is handling asset forfeiture. 

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60233.

    ###

    MIL Security OSI

  • MIL-OSI: C&F Financial Corporation Announces Net Income for First Quarter

    Source: GlobeNewswire (MIL-OSI)

    TOANO, Va., April 24, 2025 (GLOBE NEWSWIRE) — C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported consolidated net income of $5.4 million for the first quarter of 2025, compared to $3.4 million for the first quarter of 2024. The following table presents selected financial performance highlights for the periods indicated:

        For The Quarter Ended  
    Consolidated Financial Highlights (unaudited)   3/31/2025     3/31/2024  
    Consolidated net income (000’s)   $ 5,395     $ 3,435  
                     
    Earnings per share – basic and diluted   $ 1.66     $ 1.01  
                     
    Annualized return on average equity     9.35 %     6.33 %
    Annualized return on average tangible common equity1     10.65 %     7.30 %
    Annualized return on average assets     0.84 %     0.57 %

    ________________________
    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.

    Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation, commented, “We are pleased with our first quarter results. Net income increased across all of our business segments compared to the same quarter last year. Both loan and deposit growth at the community banking segment was strong and loan originations at the mortgage banking segment increased when compared to the first quarter of last year. Despite a decrease in the average balance of loans at the consumer finance segment, we were able to increase net income by continuing to focus on efficiencies. Consolidated margins grew slightly as higher cost time deposits continue to reprice downward. Despite the economic uncertainties, we are optimistic about our earnings for 2025.”

    Key highlights for the first quarter of 2025 are as follows.

    • Community banking segment loans grew $27.6 million, or 7.6 percent annualized, and $139.9 million, or 10.4 percent, compared to December 31, 2024 and March 31, 2024, respectively;
    • Consumer finance segment loans decreased $4.7 million, or 4.0 percent annualized, and $14.0 million, or 2.9 percent, compared to December 31, 2024 and March 31, 2024, respectively;
    • Deposits increased $45.8 million, or 8.4 percent annualized, and $128.7 million, or 6.2 percent, compared to December 31, 2024 and March 31, 2024, respectively;
    • Consolidated annualized net interest margin was 4.16 percent for the first quarter of 2025 compared to 4.09 percent for the first quarter of 2024 and 4.13 percent in the fourth quarter of 2024;
    • The community banking segment recorded provision for credit losses of $100,000 and $500,000 for the first quarters of 2025 and 2024, respectively;
    • The consumer finance segment recorded provision for credit losses of $2.9 million and $3.0 million for the first quarters of 2025 and 2024, respectively;
    • The consumer finance segment experienced net charge-offs at an annualized rate of 2.64 percent of average total loans for the first quarter of 2025, compared to 2.54 percent for the first quarter of 2024; and
    • Mortgage banking segment loan originations increased $19.5 million, or 20.6 percent, to $113.8 million for the first quarter of 2025 compared to the first quarter of 2024 and decreased $16.7 million, or 12.8 percent compared to the fourth quarter of 2024.

    Community Banking Segment. The community banking segment reported net income of $5.4 million for the first quarter of 2025, compared to $4.0 million for the same period of 2024, due primarily to:

    • higher interest income resulting from higher average balances of loans and the effects of higher average interest rates on asset yields; and
    • lower provision for credit losses due primarily to lower loan growth;

    partially offset by:

    • higher interest expense due primarily to higher average balances of interest-bearing deposits and higher average rates on deposits; and
    • higher marketing and advertising expenses related to the strategic marketing initiative, which began in the second half of 2024.

    Average loans increased $165.3 million, or 12.7 percent, for the first quarter of 2025, compared to the same period in 2024, due primarily to growth in the construction, commercial real estate, land acquisition and development and builder lines segments of the loan portfolio. Average deposits increased $131.6 million, or 6.4 percent, for the first quarter of 2025, compared to the same period in 2024, due primarily to higher balance of time deposits and noninterest-bearing demand deposits.

    Average interest-earning asset yields were higher for the first quarter of 2025, compared to the same period of 2024, due primarily to a shift in the mix of the loan portfolio, renewals of fixed rate loans originated during periods of lower interest rates and purchases of securities available for sale in the overall higher interest rate environment. Average costs of interest-bearing deposits were higher for the first quarter of 2025, compared to the same period of 2024, due primarily to the continued effects of a shift in the mix of deposits with customers seeking higher yielding opportunities as a result of higher interest rates paid on time deposits.

    The community banking segment’s nonaccrual loans were $1.2 million at March 31, 2025 compared to $333,000 at December 31, 2024. The increase in nonaccrual loans compared to December 31, 2024 is due primarily to the downgrade of one residential mortgage relationship in the first quarter of 2025. The community banking segment recorded $100,000 in provision for credit losses for the first quarter of 2025, compared to $500,000 for the same period of 2024. At March 31, 2025, the allowance for credit losses increased to $17.5 million, compared to $17.4 million at December 31, 2024, due primarily to growth in the loan portfolio and increased macroeconomic uncertainties. The allowance for credit losses as a percentage of total loans decreased to 1.18 percent at March 31, 2025 from 1.20 percent at December 31, 2024 due primarily to growth in loans with shorter expected lives, which resulted in lower estimated losses over the life of the loan. 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 $431,000 for the first quarter of 2025, compared to $294,000 for the same period of 2024, due primarily to:

    • higher gains on sales of loans and higher mortgage banking fee income due to higher volume of mortgage loan originations;

    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.

    Despite the sustained elevated level of mortgage interest rates, higher home prices and low levels of inventory, mortgage banking segment loan originations increased for the first quarter of 2025 compared to the same period of 2024. Mortgage loan originations for the mortgage banking segment were $113.8 million for the first quarter of 2025, comprised of $12.1 million refinancings and $101.7 million home purchases, compared to $94.3 million, comprised of $7.5 million refinancings and $86.8 million home purchases, for the same period in 2024. Mortgage loan originations in the first quarter of 2025 decreased $16.7 million compared to the fourth 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 first quarter of 2025, the mortgage banking segment recorded a reversal of provision for indemnification losses of $25,000, compared to a reversal of provision for indemnification losses of $140,000 in the same period of 2024. The allowance for indemnifications was $1.32 million and $1.35 million at March 31, 2025 and December 31, 2024, respectively. The release of indemnification reserves in 2025 and 2024 was due primarily to lower volume of mortgage loan originations in recent years, improvement in the mortgage banking segment’s assessment of borrower payment performance 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 $226,000 for the first quarter of 2025, compared to net loss of $63,000 for the same period in 2024, due primarily to:

    • lower interest expense on borrowings from the community banking segment as a result of lower average balances of borrowings;
    • lower salaries and employee benefits expense due to an effort to reduce overhead costs; and
    • higher interest income resulting from the effects of higher interest rates on loan yields, partially offset by lower average balances of loans.

    Average loans decreased $8.3 million, or 1.8 percent, for the first quarter of 2025, compared to the same period in 2024. The consumer finance segment experienced net charge-offs at an annualized rate of 2.64 percent of average total loans for the first quarter of 2025, compared to 2.54 percent for the first quarter of 2024, due primarily to an increase in delinquent loans, repossessions and the average amount charged-off when a loan was uncollectable. At March 31, 2025, total delinquent loans as a percentage of total loans was 3.05 percent, compared to 3.90 percent at December 31, 2024, and 2.78 percent at March 31, 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 1.75 percent of average automobile loans outstanding during the first quarter of 2025, compared to 1.62 percent during the same period during 2024. The allowance for credit losses was $22.5 million at March 31, 2025 and $22.7 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 4.88 percent at March 31, 2025 compared to 4.86 percent at December 31, 2024. 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 March 31, 2025, the Corporation’s uninsured deposits were approximately $644.4 million, or 29.1 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $496.6 million, or 22.4 percent of total deposits as of March 31, 2025. 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 $315.0 million and borrowing availability was $598.7 million as of March 31, 2025, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $417.1 million as of March 31, 2025.

    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 decreased to $119.5 million at March 31, 2025 from $122.6 million at December 31, 2024 due primarily to fluctuations in short-term borrowings.

    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, the issuance of brokered certificates of deposit and the capacity to borrow additional funds.

    Capital and Dividends. During the first quarter of 2025, the Corporation increased its quarterly cash dividend by 5 percent, to 46 cents per share, compared to the previous quarterly dividend. This dividend, which was paid to shareholders on April 1, 2025, represents a payout ratio of 27.7 percent of earnings per share for the first quarter of 2025. 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 levels and requirements, and expected future earnings.

    Total consolidated equity increased $8.3 million at March 31, 2025, compared to December 31, 2024, 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 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 increased 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 $19.1 million at March 31, 2025 compared to $23.7 million at December 31, 2024 due primarily to fluctuations in debt security market interest rates and a decrease in the balance of securities available for sale in an unrealized loss position as a result of maturities, calls and paydowns.

    As of March 31, 2025, the most recent notification from the FDIC categorized C&F Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at March 31, 2025, 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 March 31, 2025. 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 become 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 2024, the Board of Directors authorized a program, effective January 1, 2025 through December 31, 2025, to repurchase up to $5.0 million of the Corporation’s common stock (the 2025 Repurchase Program). During the first quarter of 2025, the Corporation did not make any repurchases of its common stock under 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 $65.33 per share on April 23, 2025. At March 31, 2025, the book value per share of the Corporation was $72.51 and the tangible book value per share was $64.39. 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 Mid-Atlantic, Midwest 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 may 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, or more important than, 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, changes in trade policy and the implementation of tariffs, war and other military conflicts or other major events, or the prospect of these events
    • average loan yields and average costs of interest-bearing deposits and borrowings
    • 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 expansion, relocation and consolidation 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, 2024 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   3/31/2025    12/31/2024    3/31/2024  
    Interest-bearing deposits in other banks   $ 62,490   $ 49,423   $ 39,303  
    Investment securities – available for sale, at fair value     431,513     418,625     430,421  
    Loans held for sale, at fair value     27,278     20,112     22,622  
    Loans, net:                    
    Community Banking segment     1,463,679     1,436,226     1,324,690  
    Consumer Finance segment     439,604     444,085     452,537  
    Total assets     2,612,530     2,563,374     2,469,751  
    Deposits     2,216,654     2,170,860     2,087,932  
    Repurchase agreements     25,909     28,994     27,803  
    Other borrowings     93,546     93,615     93,772  
    Total equity     235,271     226,970     216,949  
      For The  
      Quarter Ended  
    Results of Operations 3/31/2025     3/31/2024  
    Interest income $ 35,988     $ 32,708  
    Interest expense   10,978       9,550  
    Provision for credit losses:              
    Community Banking segment   100       500  
    Consumer Finance segment   2,900       3,000  
    Noninterest income:              
    Gains on sales of loans   1,847       1,288  
    Other   5,726       6,204  
    Noninterest expenses:              
    Salaries and employee benefits   13,483       14,252  
    Other   9,576       8,898  
    Income tax expense   1,129       565  
    Net income   5,395       3,435  
                   
    Fully-taxable equivalent (FTE) amounts1              
    Interest income on loans-FTE   32,428       29,636  
    Interest income on securities-FTE   3,346       3,098  
    Total interest income-FTE   36,276       32,993  
    Net interest income-FTE   25,298       23,443  

    ________________________
    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  
          3/31/2025      3/31/2024     
        Average      Income/      Yield/   Average      Income/      Yield/  
    Yield Analysis   Balance     Expense     Rate   Balance     Expense     Rate  
    Assets                                  
    Securities:                                  
    Taxable   $ 339,450     $ 2,193   2.58 % $ 365,244     $ 1,980   2.17 %
    Tax-exempt     119,033       1,153   3.87     120,920       1,118   3.70  
    Total securities     458,483       3,346   2.92     486,164       3,098   2.55  
    Loans:                                  
    Community banking segment     1,467,555       19,966   5.52     1,302,260       17,331   5.35  
    Mortgage banking segment     20,968       339   6.56     17,700       281   6.39  
    Consumer finance segment     465,526       12,123   10.56     473,848       12,024   10.21  
    Total loans     1,954,049       32,428   6.73     1,793,808       29,636   6.64  
    Interest-bearing deposits in other banks     55,830       502   3.65     28,417       259   3.67  
    Total earning assets     2,468,362       36,276   5.95     2,308,389       32,993   5.75  
    Allowance for credit losses     (40,605 )               (40,292 )            
    Total non-earning assets     154,554                 156,800              
    Total assets   $ 2,582,311               $ 2,424,897              
                                       
    Liabilities and Equity                                  
    Interest-bearing deposits:                                  
    Interest-bearing demand deposits   $ 332,341       600   0.67   $ 335,570       553   0.66  
    Savings and money market deposit accounts     489,217       1,205   1.00     484,645       1,061   0.88  
    Certificates of deposit     821,949       7,964   3.93     705,167       6,916   3.94  
    Total interest-bearing deposits     1,643,507       9,769   2.40     1,525,382       8,530   2.25  
    Borrowings:                                  
    Repurchase agreements     28,192       112   1.59     27,997       111   1.59  
    Other borrowings     93,597       1,097   4.69     78,445       909   4.64  
    Total borrowings     121,789       1,209   3.97     106,442       1,020   3.83  
    Total interest-bearing liabilities     1,765,296       10,978   2.51     1,631,824       9,550   2.35  
    Noninterest-bearing demand deposits     545,346                 531,885              
    Other liabilities     40,874                 44,125              
    Total liabilities     2,351,516                 2,207,834              
    Equity     230,795                 217,063              
    Total liabilities and equity   $ 2,582,311               $ 2,424,897              
    Net interest income         $ 25,298             $ 23,443      
    Interest rate spread               3.44 %             3.40 %
    Interest expense to average earning assets               1.79 %             1.66 %
    Net interest margin               4.16 %             4.09 %
                                       
                       
        3/31/2025
    Funding Sources    Capacity      Outstanding      Available
    Unsecured federal funds agreements   $ 75,000   $   $ 75,000
    Borrowings from FHLB     248,508     40,000     208,508
    Borrowings from Federal Reserve Bank     315,221         315,221
    Total   $ 638,729   $ 40,000   $ 598,729
                       
    Asset Quality   3/31/2025   12/31/2024  
    Community Banking              
    Total loans   $ 1,481,190   $ 1,453,605  
    Nonaccrual loans   $ 1,189   $ 333  
                   
    Allowance for credit losses (ACL)   $ 17,511   $ 17,379  
    Nonaccrual loans to total loans     0.08 %   0.02 %
    ACL to total loans     1.18 %   1.20 %
    ACL to nonaccrual loans     1,472.75 %   5,218.92 %
    Annualized year-to-date net charge-offs to average loans     0.01 %   0.01 %
                   
    Consumer Finance              
    Total loans   $ 462,136   $ 466,793  
    Nonaccrual loans   $ 975   $ 614  
    Repossessed assets   $ 976   $ 779  
    ACL   $ 22,532   $ 22,708  
    Nonaccrual loans to total loans     0.21 %   0.13 %
    ACL to total loans     4.88 %   4.86 %
    ACL to nonaccrual loans     2,310.97 %   3,698.37 %
    Annualized year-to-date net charge-offs to average loans     2.64 %   2.62 %
                   
      For The
      Quarter Ended
    Other Performance Data 3/31/2025   3/31/2024
    Net Income (Loss):          
    Community Banking $ 5,445     $ 4,012  
    Mortgage Banking   431       294  
    Consumer Finance   226       (63 )
    Other1   (707 )     (808 )
    Total $ 5,395     $ 3,435  
               
    Net income attributable to C&F Financial Corporation $ 5,368     $ 3,401  
               
    Earnings per share – basic and diluted $ 1.66     $ 1.01  
    Weighted average shares outstanding – basic and diluted   3,234,935       3,370,934  
               
    Annualized return on average assets   0.84 %     0.57 %
    Annualized return on average equity   9.35 %     6.33 %
    Annualized return on average tangible common equity2   10.65 %     7.30 %
    Dividends declared per share $ 0.46     $ 0.44  
               
    Mortgage loan originations – Mortgage Banking $ 113,750     $ 94,346  
    Mortgage loans sold – Mortgage Banking   106,431       86,079  

    ________________________
    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 3/31/2025   12/31/2024
    Market value per share $ 67.39     $ 71.25  
    Book value per share $ 72.51     $ 70.00  
    Price to book value ratio   0.93       1.02  
    Tangible book value per share1 $ 64.39     $ 61.86  
    Price to tangible book value ratio1   1.05       1.15  
    Price to earnings ratio (ttm)   11.16       11.86  

    ________________________
    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   3/31/2025   12/31/2024   Requirements3
    C&F Financial Corporation1                    
    Total risk-based capital ratio     14.1 %   14.1 %   8.0 %
    Tier 1 risk-based capital ratio     11.9 %   11.9 %   6.0 %
    Common equity tier 1 capital ratio     10.8 %   10.7 %   4.5 %
    Tier 1 leverage ratio     9.9 %   9.8 %   4.0 %
                         
    C&F Bank2                    
    Total risk-based capital ratio     13.7 %   13.5 %   8.0 %
    Tier 1 risk-based capital ratio     12.4 %   12.3 %   6.0 %
    Common equity tier 1 capital ratio     12.4 %   12.3 %   4.5 %
    Tier 1 leverage ratio     10.3 %   10.1 %   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 March 31, 2025 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2024 are presented as filed.
    3 The ratios presented for minimum capital requirements are those to be considered adequately capitalized.

        For The Quarter Ended
        3/31/2025   3/31/2024
    Reconciliation of Certain Non-GAAP Financial Measures        
    Return on Average Tangible Common Equity            
    Average total equity, as reported   $ 230,795     $ 217,063  
    Average goodwill     (25,191 )     (25,191 )
    Average other intangible assets     (1,118 )     (1,366 )
    Average noncontrolling interest     (637 )     (649 )
    Average tangible common equity   $ 203,849     $ 189,857  
                 
    Net income   $ 5,395     $ 3,435  
    Amortization of intangibles     62       65  
    Net income attributable to noncontrolling interest     (27 )     (34 )
    Net tangible income attributable to C&F Financial Corporation   $ 5,430     $ 3,466  
                 
    Annualized return on average equity, as reported     9.35 %     6.33 %
    Annualized return on average tangible common equity     10.65 %     7.30 %
                     
        For The Quarter Ended
        3/31/2025   3/31/2024
    Fully Taxable Equivalent Net Interest Income1                
    Interest income on loans   $ 32,382     $ 29,586  
    FTE adjustment     46       50  
    FTE interest income on loans   $ 32,428     $ 29,636  
                     
    Interest income on securities   $ 3,104     $ 2,863  
    FTE adjustment     242       235  
    FTE interest income on securities   $ 3,346     $ 3,098  
                     
    Total interest income   $ 35,988     $ 32,708  
    FTE adjustment     288       285  
    FTE interest income   $ 36,276     $ 32,993  
                     
    Net interest income   $ 25,010     $ 23,158  
    FTE adjustment     288       285  
    FTE net interest income   $ 25,298     $ 23,443  

    ____________________
    1 Assuming a tax rate of 21%.

        3/31/2025   12/31/2024
    Tangible Book Value Per Share        
    Equity attributable to C&F Financial Corporation   $ 234,634     $ 226,360  
    Goodwill     (25,191 )     (25,191 )
    Other intangible assets     (1,084 )     (1,147 )
    Tangible equity attributable to C&F Financial Corporation   $ 208,359     $ 200,022  
                 
    Shares outstanding     3,235,781       3,233,672  
                 
    Book value per share   $ 72.51     $ 70.00  
    Tangible book value per share   $ 64.39     $ 61.86  
                     
    Contact:     Jason Long, CFO and Secretary
    (804) 843-2360
         

    The MIL Network

  • MIL-OSI Global: Mohammed Sami emerges as favourite in predictable Turner prize 2025 shortlist

    Source: The Conversation – UK – By Martin Lang, Senior Lecturer and Programme Leader in Fine Art , University of Lincoln

    The Turner prize is the world’s most prestigious award for contemporary art. Named after the renowned British painter J.M.W. Turner, the prize used to be a huge media affair. After it relaunched in 1991, it had a full live feature on Channel 4 (back in the day when most people only had four television channels) presented by British art critic Matthew Collings, and the prize was announced over the years by major celebrities, such as Madonna.

    Famous for courting controversy, the Turner prize shortlist was often featured on the front pages of tabloid newspapers – Tracey Emin’s “unmade bed” being a point in case. In more recent years, the prize has become less controversial and shifted towards more political themes, following certain trends such as new media and identity politics.

    Originally, the prize was limited to a British artist under the age of 50, but the age limit was removed in 2017 to accommodate Lubaina Himid (then 63) who was seen as emblematic of overlooked artists (in particular women of colour).

    Organised by the Tate which appoints a jury to select the shortlist, this year’s panel includes Andrew Bonacina (independent curator), Sam Lackey (director of the Liverpool Biennale), Priyesh Mistry (associate curator of modern and contemporary projects at the National Gallery, London), and Habda Rashid (senior curator of modern and contemporary art at the Fitzwilliam Museum, Cambridge).


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    The criteria for selection are straightforward: the artist must be based in Britain and have had an outstanding exhibition in the last 12 months. Since this exhibition could take place anywhere in the world, it’s not uncommon for the British public not to have seen it, and this is the case this year. On the 250th anniversary of J.M.W. Turner’s birthday, the shortlist for the 2025 Turner Prize was announced at Tate Britain, with four artists shortlisted: Nnena Kalu, Rene Matić, Mohammed Sami and Zadie Xa.

    Nnena Kalu was selected for her show at Manifesta 15 in Barcelona, supplemented by work at the Walker Art Gallery, Liverpool. Kalu creates colourful cocoon-like hanging sculptures that are wrapped and woven, and respond to the architectural space in which they hang.

    Much will be made of Kalu’s identity as a black, learning-disabled, female artist, but this doesn’t really need to come into the assessment of her work, which is really an exploration of colour, gesture and repetition.

    Rene Matić was nominated for their show at CCA Berlin. Matić’s work addresses race, gender and class from personal experience, reflecting concerns that are so commonplace in contemporary art that – ironically for one of the youngest-ever Turner Prize nominees – they now seem behind the curve, like a pastiche.

    Unlike Kalu, Matić’s installations and photography place identity front and centre, predictably from a personal point of view. This is supposed to make a powerful statement about the intersectionality of modern life, but is hardly an original position today.

    Mohammed Sami was nominated for his exhibition at Blenheim Palace, which, while in England, was easily missed by art lovers.

    Sami’s paintings depict interiors that evoke memory and loss. His use of shadows and the absence of human presence create a sinister atmosphere, adding depth to his exploration of personal and collective histories and to the genre of the interior.

    Zadie Xa was nominated for her show at the Sharjah Biennial 16. Xa’s interdisciplinary approach combines sound, textiles and mural painting to delve into her Korean heritage, including themes like shamanism.

    Her work pushes the boundaries of painting, integrating it with other media – such as sound, textiles and murals – to create immersive experiences.

    This year’s Turner prize is notable for including painting for the first time since before the pandemic – perhaps a nod to Turner himself in this anniversary year. Sami’s oil on canvas contrast with Xa’s interdisciplinary methods, highlighting the diversity of contemporary art practices. Kalu and Matić provide installations, photography and text art diversifying the shortlist in terms of medium.

    The four shortlisted artists will be exhibited together at Cartwright Hall Art Gallery, Bradford in September, and the winner will be announced on December 9. While the line-up is stronger than others in recent years, it is still somewhat predictable and lacks the excitement and controversies of years gone by.

    Mohammed Sami is by far the best artist on the shortlist and is already emerging as a clear favourite to win. Although the 2017 winner Lubaina Himid’s work included elements of painting, if Sami does win, he would be the first painter to win the prize since Tomma Abts in 2006.

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

    ref. Mohammed Sami emerges as favourite in predictable Turner prize 2025 shortlist – https://theconversation.com/mohammed-sami-emerges-as-favourite-in-predictable-turner-prize-2025-shortlist-255248

    MIL OSI – Global Reports

  • MIL-OSI Global: Hyper-individualistic and focused on worth, the manosphere is a product of neoliberalism

    Source: The Conversation – UK – By Sophie Lively, PhD Candidate in Human Geography, Newcastle University

    Marina April/Shutterstock

    Netflix’s hit drama, Adolescence, has reignited debates about the impact of the manosphere and violence against women.

    Many of the responses focus on trying to change the behaviour of boys and young men: encouraging them to find better role models, or to learn from the media about the harms of toxic influencers.

    But the problem is a wider one. The manosphere is a range of interconnected online misogynistic communities.

    My ongoing PhD research is analysing masculinity, class and nationalism and exploring how these narratives appear in the everyday lives of men. I argue that responding to the harm that stems from these online communities requires an understanding of the manosphere as a product of a global, neoliberal, capitalist system built on inequality and division.

    Neoliberalism can be described as “capitalism on steroids”. It’s a hyper-individualistic and market-driven ideology that fosters a culture of competition.

    Neoliberalism encourages us to see ourselves as isolated individuals, responsible for our own success or failure. Among many other things research has shown that one of its outcomes is a profound loneliness. This is something that the manosphere exploits.

    Role models are important, but the disconnect felt by so many today won’t be fixed by better role models within the same system. For example, black feminist thought, which recognises the way racism and sexism intersect and can offer extensive structural critiques, shows us that efforts to end violence against women must take place alongside work to change wider systems. So to start preventing violence we must first deal with root causes, such as poverty and inequality.

    Measuring people by ‘value’

    The manosphere picks up on messages around failing. Alongside hate-filled and misogynistic content, shame-based narratives from the manosphere suggest that boys and men are losers, weak and lazy if they aren’t “succeeding”. This is deeply damaging to all who find themselves drawn to such messages.

    The concept of self-worth regularly appears in the manosphere, but it’s largely in relation to wealth or productivity: hustle harder, rise and grind, make money. These ideas don’t just exist in these online spaces. Similar language – self-investment, output, productivity, personal growth, efficiency – has become part of our everyday way of talking about ourselves and others.

    The wellness industry promises us we can “glow up”. Self-help books and hustle culture encourage us to be better and produce more. Lifestyle influencers demonstrate how to turn our everyday existence into a marketable product.

    This way of thinking turns people into products. It’s not about who you are – it’s about what you produce. Today’s far-right (of which the manosphere is part) capitalises on these ideas and the obsession with economic value.

    There are versions of this aimed at women and girls, such as “cleanfluencers”, who reframe housework not only as a consumable personal brand but also as glamorous and fun.

    But the hustle culture messaging central to the manosphere is particularly distinct in its hypermasculine messaging centred on “self-improvement” which advocates working harder and longer while being ruthless and dominant.

    A focus on domination and individual success encourages young boys and men to see their self-worth tied up in that and that alone. This message extends beyond the manosphere and is part of the very system with which we all exist.

    Resisting the system

    Those captivated by manosphere narratives are victims as well as perpetrators. This doesn’t excuse their actions, or mean they shouldn’t be held accountable. How we care for each other within a capitalist society isn’t easy or straightforward.

    Too often, though, discussion focuses solely on punitive responses, such as advocating for longer prison sentences. If we only focus on punishment, we miss the bigger picture. We need to find more inclusive ways of talking about, and responding to, harm – while rethinking what it means to truly care for each other.

    Abolitionist movements strive to create systems which improve people’s health and safety and build a future without prisons. They seek to build responses to harm that are founded on education and community accountability – where communities take responsibility for identifying issues they need to address.

    Abolitionist approaches advocate for expanding support networks and investing in resources deemed appropriate by survivors. Proposals like this work towards preventing violence. Their community focus means they address the isolating effects of neoliberalism at the same time.

    We also can’t convince ourselves that once the likes of Andrew Tate and others involved in the manosphere disappear, women and girls will no longer suffer such extreme levels of misogyny and violence at the hands of boys and men.

    This is because we exist within a system built on inequality and violence. It’s a system which rewards competition over cooperation, greed over care and one which is harmful to us all.

    Sophie Lively receives funding from the Economic and Social Research Council as part of Northern Ireland and North East Doctoral Training Partnership.

    ref. Hyper-individualistic and focused on worth, the manosphere is a product of neoliberalism – https://theconversation.com/hyper-individualistic-and-focused-on-worth-the-manosphere-is-a-product-of-neoliberalism-254339

    MIL OSI – Global Reports

  • MIL-OSI Economics: Spring Meetings 2025 Press Briefing Transcript: Intergovernmental Group of Twenty-Four (G24)

    Source: International Monetary Fund

    April 24, 2025

    SPEAKERS:

    Chair: Pablo Quirno, Secretary of Finance, Ministry of Economy of Argentina

    First Vice‑Chair:  Olawale Edun, Federal Minister of Finance of Nigeria

    Second Vice‑Chair: Jameel Ahmad, Governor, State Bank of Pakistan

    Director: Iyabo Masha, G‑24 Secretariat

    MODERATOR:

    Pavis Devahasadin, Communications Officer, IMF

    Mr. Devahasadin: Good morning, ladies and gentlemen. My name is Pavis Devahasadin, Communication Officer from the IMF’s Communication Department. I would like to welcome everyone here in this room and our online audience to the press conference on the Intergovernmental Group of 24 on International Monetary Affairs and Development or G‑24.

    Before we begin, I would like to remind you that we have simultaneous translation in English, French and Spanish. It is my honor to introduce the distinguished panel at this table, the Chair of the Ministry of the G‑24 at the center is Mr. Pablo Quirno, Secretary of Finance of Argentina. To his right is Mr. Vice Chair, Mr. Olawale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy. To the left of Mr. Chair is Second‑Vice Chair Mr. Jameel Ahmad, Governor of the State Bank of Pakistan. Of course, at the other end of the table is Director of G‑24 Secretariat Ms. Iyabo Masha. Without further ado, may I invite Mr. Quirno to give some remarks. Mr. Chair, the floor is yours.

    Mr. Quirno (Argentina): Thank you, Pavis. Dear members of the press, I would like to extend a warm welcome to each and every one of you as we gather for this press conference. You have at your disposal our comprehensive communiqué and press release encapsulating the discussions held today. Allow me to briefly highlight the key takeaways.

    We are witnessing a major transition in how the global economy works and processes of change such as these always involve intervals of great volatility and uncertainty. Our communiqué reflects that the recent economic developments have driven uncertainty to elevated levels. In this context, emerging market and developing economies face additional challenges stemming from both external conditions and domestic factors.

    On the external front, many EMDEs continue to face elevated public debt levels and rising debt servicing burdens. The prevailing environment of still tight global financial conditions is exacerbating these challenges, constraining fiscal space, and forcing difficult tradeoffs between repaying creditors and investing in critical areas for productivity, growth and development. These also represent a risk to macroeconomic stability, as debt maturities and rising debt service payments hinder fiscal consolidation plans, which are necessary to tackle domestic imbalances, maintain price stability, and foster a stable macroeconomic environment for investment and growth.

    On the domestic front, weak fiscal fundamentals are at the core of macroeconomic instability, while many of us face longstanding structural policy challenges that hold back productivity and competitiveness.

    The building up of external and fiscal imbalances amid public spending pressures that exceed revenues and with constrained access to international financial markets further erodes macroeconomic stability.

    Furthermore, domestic environments perceived as unsafe for investment dominated by overly complex legislation and inefficient and burdensome tax systems add to macroeconomic instability to further discourage much‑needed private capital inflows.

    As stated in the communiqué, domestic policymaking is the first line of defense. The best way to enhance short‑term domestic responsiveness, as well as medium‑term growth capacity is through solid macroeconomic frameworks combined with clear rules that foster a predictable environment for private investment.

    Pivoting to our fiscal consolidation to set debt on a sustainable path and rebuild buffers while advancing with productivity‑enhancing‑market reoriented structural reforms must remain priorities for the domestic policymaking. Whereas doing so while maintaining social cohesion and protecting the most vulnerable can be challenging, it can be achieved with careful policy calibration.

    But as these measures may take some time to deliver, mobilizing sufficient international support is also crucial to help countries meet their financing needs while they navigate the waters towards a healthier economy. The Bretton Woods Institutions remain crucial, necessitating decisive actions to fortify the Global Financial Safety Net and broaden development finance. The IMF’s role as a centerpiece of the Global Financial Safety Net is vital in addressing multilateral challenges and supporting vulnerable countries. We appreciate the IMF’s recent reforms to better support EMDEs, such as the recent review of the charges and surcharges policies.

    However, countries with limited access to affordable short‑term and crisis‑related liquidity continue to face vulnerabilities. It is essential to address liquidity pressures and strengthen crisis prevention and response capabilities, including enhancing existing financial safety nets. Surveillance and internal and external stability should be intensified, including on spillover effects from systematically important countries. The World Bank has made progress in implementing the Evolution Program, but further progress is required in operationalizing key aspects of the framework of financial incentives and reducing IBRD loan pricing. Faster implementation of the remaining G‑20 Independent Experts Groups Recommendations on MDB reforms is needed, including mitigating currency risks through local currency lending and domestic capital market reforms, de‑risking private‑sector investment, and increasing capital within the WBG and across the MDB system.

    Swift progress on the 2025 shareholding review is necessary to address misalignments, strengthen voice and representation, enhance IBRD legitimacy, and ensure equitable voting power.

    In sum, the path to sharp growth and a steady growing economy is multifaceted. We must do our part and commit to strengthen fiscal and monetary frameworks, build robust institutions, and embrace structural reforms that promote competitiveness, productivity gains, and job creation, but at the same time we need global financial institutions that recognize domestic efforts and are willing and well‑prepared to step up for these countries. Thank you, and with these remarks, I am now ready to entertain your questions.

    Mr. Devahasadin: Thank you, Mr. Chair. Before we begin the Q&A section, I kindly ask that all questions remain within the scope of the G‑24’s mandate and responsibilities. Other questions outside of its purview, of course, should be raised during the regional press conferences that are going to be taking place in the coming days. And please kindly identify yourself, your organization, your news outlet, and specify to whom your questions would like to be addressing. With that, any questions? Yes, sir.

    QUESTION: Good morning to everybody. Mr. Quirno, you just said that the Bretton Woods Institutions are crucial. Does any of you feel that their role, their functioning is endangered currently? Thank you for answering this question.

    Mr. Devahasadin: Thank you.

    Mr. Quirno: I think globally we are facing a period of volatility and uncertainty. As such, the Bretton Woods Institutions are crucial in providing the safety net and the channels of communication that remain open among the different countries that participate in those institutions. And I think the role is very, very important. And we do not see them—I mean, we are always rebalancing their role and their task, and it is something that is a process that we do constantly. At the end of the day, the role is vital. It is very important, and we do not see them at risk as you put it.

    Mr. Devahasadin: Minister Edun.

    Mr. Edun (Nigeria): Thank you. I agree with the Chair that there is nothing that we have heard that says that the Bretton Woods Institutions stands ready to do anything other than on the one hand, provide safety net. On the other hand, continue to provide development finance. If anything, this time of heightened global uncertainty, what we have heard from them is that they stand ready and are very much willing and capable to help countries to navigate this particular time and to continue to encourage good policymaking, to encourage resilience, building of resilience, building of buffers and effectively staying the course for those who are actually on a path that will take them further along the road to growth development and reduction of poverty.

    Mr. Devahasadin: Thank you. Governor Ahmad or Ms. Masha, would you like to add anything?

    Mr. Ahmad: No, it is OK. I think we fully agree with the views expressed by the Chair and the Vice. I think the increased uncertainty and the prevailing situation, it has become much more important for the Bretton Woods Institutions to continue to play their role and particularly as the financial safety net providers and also as the development partners. I think they have a role which will continue to be there, and they will be contributing in the performance of the road previously—that they have been doing previously, so I fully agree.

    Mr. Devahasadin: Thank you. Ms. Masha?

    Ms. Masha (G-24 Secretariat): Yes. We believe that the organizations are very useful, and the usefulness is very much appreciated, and so we do not have any uncertainty about their continued relevance. And we do hope that whatever actions countries are taking, the advanced economies are taking, they will factor into their decision the very good usefulness of these organizations. Thank you.

    Mr. Devahasadin: Thank you. Going back to the floor. Any question? Right here, lady with the glasses.

    QUESTION: My question is for Mr. Jameel Ahmad. What steps is the State Bank of Pakistan taking? Is it engaging with other central banks to mitigate risks, particularly in the G‑24 framework? Thank you.

    Mr. Ahmad: I think as initially said that if there is any specific questions pertaining to the State Bank, we can discuss that during the separate conferences, which we have, but for the time being, since we are in the G-24 platform, we are coordinating with other central banks, and we discussed all these issues during the yesterday’s Deputies Meeting as well as today’s meeting also of the G-24. These are the issues faced by the G-24 members and have been thoroughly discussed and the stance has been agreed upon. This is what is contained in the communiqué which is being issued today.

    Mr. Devahasadin: Going back to the floor, maybe in the midsection I saw some hands. I will start with you in the black. Thank you. We are going to make our way back. Yes.

    QUESTION: So, I have a couple questions for everyone here. First of all, how concerned are your members from the fallout from tariffs and what are they trying to do to try to mitigate the impacts? Also, are you planning to work more closely with each other, for instance, increasing trade with each other? And lastly, specifically, are you planning on working more closely with China, for instance?

    Mr. Devahasadin: Just to add to that, I got an advanced question Sri Lanka. In the light of reciprocal tariff currently in place, what strategy is the G‑24 considering as a working group to alleviate the pressure on emerging economies? So that is related to your question as well. Mr. Chair.

    Mr. Quirno: Thank you. Thank you for the questions. I think that it is important to understand that the G‑24 is a very diverse group of countries, and everyone, each of us has its own peculiarities, strengths, and weaknesses in the midst of the current trade situation. So, what I would say is that the fallout of this uncertainty that we are facing creates more volatility. And as emerging market countries and developing countries, what you face is a situation in which, in addition to the trade tensions, you have a situation on the capital markets and the capital flows, things that are based on the uncertainty. What happens is flows are expecting a solution. As one of the members said today, we can deal with good news. We can deal with bad news. We need to know what to do under uncertainty. You know, as we are going through this process of trade negotiations globally and as definitions are set, then we will know how to react. In the meantime, as we said in the communiqué and as we said in my opening remarks, the first line of defense, the thing that is within our country’s contro, is around the domestic agenda. We need to bring resilience into our own economies in such a way that we have a fiscal path that is credible, that we have sound monetary policies as well that back that fiscal consolidation program, because at the end of the day that is what investors are looking at.

    Investors are looking at the different countries’ situation and see how they can cope with this level of uncertainties. We have faced different levels, different crises in the past — globally, the pandemic being the last one. And we have, as a collective number of countries, been able to achieve a level of resilience that is very good. I mean, that resilience is being tested once again. That is why we also need to work in conjunction among the different countries, not only G‑24 but in a global context to address the situation. But I think the homework also needs to be consolidated at home in order to then continue moving forward. And as such, we are also obviously fostering our trade relationships among the different countries. We are doing it among the G‑24, among G‑20, so there are various areas of cooperation and consolidation there as well.

    Mr. Devahasadin: Any perspective from Ms. Masha in terms of coordination, collaboration across nations?

    Ms. Masha: Well, I think the Chair has pointed out some of those issues regarding macroeconomic stability, that is when these shocks manifest, there’s need for fiscal policies, sound monetary policies. But more along that line, it also provides opportunities for countries to pivot towards a different development pathway. Maybe going into sectors that are going to satisfy domestic demand will make them less prone to external shocks and diversifying their markets, the different markets, so they can better cope with the future tariff or trade policies. Thank you.

    Mr. Devahasadin: Thank you. Going back to the floor, I see hands right there all the way in the back, the lady in beige. We will come back to the front.

    QUESTION: Thank you for taking our questions. A question for everyone, sort of piggybacking off of my colleague’s question on tariffs. How does the G‑24 weigh the inflationary risks versus risks of recession from the current tariff environment? And then one for the Argentina Secretary, you spoke about debt maturities and rising debt payments, more than 4 billion in debt many coming due for Argentina in July right after an ambitious reserve target accumulation from the IMF. How does Argentina plan to confront those payments and is there a target that it is looking back to return to capital markets? Thank you.

    Mr. Quirno: In terms of the first question related to inflationary pressures and related to the trade situation, we had this morning the World Economic Outlook conference in which we had details on that perspective, but I think also it is very early to tell on how this is going to at the end of the day be moving forward. We are not in the business—at least I am not in the business of projecting inflation in my own country. It is very difficult to try to project inflationary pressures on a global basis, but I think it is—as I said before, we are living in uncertain times. We expect that trade negotiations that are currently underway reach a good point that is satisfactory to everyone involved, and that will normalize trade flows from that perspective onwards. In terms of Argentina—I mean, despite the fact that it is a common theme throughout the G‑24—what we are trying to do in Argentina for the last 15 months is basically gain our credibility back. And as such, we have elected a very conservative and unorthodox approach to the problems that Argentina had. And one of the problems that Argentina had was on the fiscal front. And we have done a tremendous fiscal consolidation. We put our house in order, on the monetary front as well. And that track record is one that will put us in a path to regaining market access eventually.

    Having said that, from my perspective, as the CFO of the country, what I can say is that we work at it very conservatively. I am not assuming that Argentina will be able to re‑access markets at a given time. But we have certainty that the maturities are coming due. That is why we have worked in the past in showing our willingness to pay. We have honored all our commitments. We have now a new IMF program, which has started to work very well, as expected. And in addition to that, because of that conservative, look, we have already accumulated reserves. The Treasury has bought a significant amount of dollars that it has at the central bank to honor those obligations. So, we do not expect to—we cannot speculate about when Argentina will be able to re‑access international markets. When those will happen, when that situation happens, we will address it. But in the meantime, we still work as if we have no access, and we have to pay down our obligations as we did in this last 15 months.

    Mr. Devahasadin: Thank you, I see three remaining hands. I will come back to the front with the lady in the brown jacket first and then I go to that side of the room. I see two hands. Please keep your questions short. We have limited time. Thank you.

    QUESTION: Hi. My question is regarding—we have seen the U.S. called back on some of the financings that it gives to developing economies, so in terms of financing the sustainable development goals, as well as climate action, could you talk about some of the challenges there?

    Mr. Devahasadin: Are your questions related to climate so we can collect them both? Anyone on climate here.

    Mr. Quirno: We face several challenges and as such, for that, many countries rely on the World Bank and the IMF, to basically be able to develop tools to finance that development, finance climate action, to finance infrastructure, and as such, we are at a period in which you have to—countries have to balance that in turn with their own macroeconomic situation in that respect. We need to—we have many of our countries in the G‑24 have significant natural resources that need to be developed. Those are the ones that are part of the transition energy, for example. And those are situations in which you cannot access private financing. The role of development financing in terms of climate, in terms of energy transition, et cetera, is very important. But those are challenges that are on the table that we need to address, and we are addressing together as a group and as an individual country as well.

    Mr. Devahasadin: Thank you. Go back to the floor. Gentleman back here and we can go all the way back to you, sir.

    QUESTION: Thank you. Two questions. You brought back fiscal discipline to Argentina, but can you quantify the harmful effects on the lives of the citizens? That is what want to talk about, the strikes, the protests, the fact that people do not have money in their pockets. Secondly, you also talked about building resilience, how do we build resilience where most of the countries in the G‑24 have one similar problem, a lot of visionless leadership, definitely, and a lot of poverty. Our arms are already tied behind our hands economically. How do you expect us to build resilience?  We are just led to the slaughter slap.

    Mr. Devahasadin: Thank you. Can I go all the way back to the back, the gentleman in the back, please?

    QUESTION: Thank you for taking my question. I wanted to touch on debt restructuring. In October you called on the reform of the Common Framework, and I am curious to know more about what sort of reform moves you have seen since then and also what types of reforms the G‑24 would like to see to the Common Framework. Thank you.

    Mr. Quirno: To the first question, I hate to make reference to Argentina, but the question was directly addressed to that situation. Argentina was facing a very dire situation—55 percent poverty rate before this administration took office. We have worked very, very strongly to do a couple of things that basically went straight to address that situation by having done our fiscal consolidation. We basically reduced 5 percentage points of GDP deficit in a month, something that has not been done probably anywhere else in the world so far. But we did it because we knew that we had no alternative. And at the end of the day, what happened is that the myth is that by doing such an adjustment, you would enter into a deep recession. Argentina rebounded out of its recession that was two and a half years long two months after that fiscal consolidation.

    Since then, real wages have increased for 10 months straight. Poverty levels have been reduced from 54 percent to 38 percent in about a year. And economic activity has increased 6 percent December 2024 from December 2023 when we took over. It can be done. That is the message. You know, there is preoccupations before, during such a big adjustment as we did, but it pays out. It takes the political will to do it. Everyone knows what needs to be done on the fiscal and monetary fronts. The books have been written about it. What happens is you need the political willingness to attack the problem because that may hurt politicians when they make those decisions. We have a very strong leadership in President Milei — the one that has said we need to go in this. What he has said is we need to take care of the most vulnerable. We doubled in real terms, while being able to achieve our financial surplus. We were able to double in real terms the assistance to the most vulnerable. And that is something that basically shows the amount of corruption and intermediation that was on the social plans that the national government was spending on. So now those funds have been redirected. It is funny that we doubled the expenditures in real terms, but the amount that people received more than tripled. We spent 100, and we are now spending 200 in real terms. People got 60. They received 60, and then they are receiving 200. That is a big—very big realization from the most vulnerable population that they have been robbed for years. Because by maintaining fiscal consolidation, by maintaining a financial surplus, we were still able to double the assistance to the most vulnerable.

    Mr. Devahasadin: We go to Ms. Masha on debt restructuring because you spoke about it last time.

    Ms. Masha: Debt restructuring?

    Mr. Devahasadin: The Common Framework. Yes, the progress on that.

    Ms. Masha: I want to add a little to what the Chair said in response to the question before I go to the Common Framework.

    Mr. Devahasadin: Yes.

    Ms. Masha: That is just to say that the G‑24 member countries, we have some of the largest economies in the world as members of G‑24, and the good thing is that the growth, the size of their economy, most of them over the past two or three decades, China, India and Brazil. So that takes a lot of vision. That takes a lot of implementations of the right policies. So, it is not quite a visionless leadership, but they have had to take policies that enable the countries to achieve what they have been able to achieve over such a short period of time.

    On the Common Framework — where we are on the Common Framework is that some countries have used it. Some have found it beneficial. The only complaint—well, some of the complaints we have heard about is that the process takes a very long time. And during that long time, they are not able to access the market, or they have to take some difficult decisions when they do not know how it is going to play out. And we also made that position known. The second, the other issue is we need more participation of the private market, maybe of also multilateral development banks, and also to have some precise idea of how it will play out. Some middle‑income countries have been asked to be a part of it. That is not really in discussion now, but all in all, countries have benefited from it, but there could be more benefit. Thank you.

    Mr. Devahasadin: Mr. Chair, you would like to add anything?

    Mr. Quirno (Argentina): No.

    Mr. Devahasadin: We are out of time. Unfortunately, Minister Edun had another obligation. If you have any follow‑up question, send it to press@G24.org. That was in the advisory, how to contact the G‑24. The communiqué should have been posted on IMF.org and the transcript of this press conference will be made available later. Thank you very much for joining this press conference and have a good rest of your day. Thank you.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    MIL OSI Economics

  • MIL-OSI Russia: Spring Meetings 2025 Press Briefing Transcript: Intergovernmental Group of Twenty-Four (G24)

    Source: IMF – News in Russian

    April 24, 2025

    SPEAKERS:

    Chair: Pablo Quirno, Secretary of Finance, Ministry of Economy of Argentina

    First Vice‑Chair:  Olawale Edun, Federal Minister of Finance of Nigeria

    Second Vice‑Chair: Jameel Ahmad, Governor, State Bank of Pakistan

    Director: Iyabo Masha, G‑24 Secretariat

    MODERATOR:

    Pavis Devahasadin, Communications Officer, IMF

    Mr. Devahasadin: Good morning, ladies and gentlemen. My name is Pavis Devahasadin, Communication Officer from the IMF’s Communication Department. I would like to welcome everyone here in this room and our online audience to the press conference on the Intergovernmental Group of 24 on International Monetary Affairs and Development or G‑24.

    Before we begin, I would like to remind you that we have simultaneous translation in English, French and Spanish. It is my honor to introduce the distinguished panel at this table, the Chair of the Ministry of the G‑24 at the center is Mr. Pablo Quirno, Secretary of Finance of Argentina. To his right is Mr. Vice Chair, Mr. Olawale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy. To the left of Mr. Chair is Second‑Vice Chair Mr. Jameel Ahmad, Governor of the State Bank of Pakistan. Of course, at the other end of the table is Director of G‑24 Secretariat Ms. Iyabo Masha. Without further ado, may I invite Mr. Quirno to give some remarks. Mr. Chair, the floor is yours.

    Mr. Quirno (Argentina): Thank you, Pavis. Dear members of the press, I would like to extend a warm welcome to each and every one of you as we gather for this press conference. You have at your disposal our comprehensive communiqué and press release encapsulating the discussions held today. Allow me to briefly highlight the key takeaways.

    We are witnessing a major transition in how the global economy works and processes of change such as these always involve intervals of great volatility and uncertainty. Our communiqué reflects that the recent economic developments have driven uncertainty to elevated levels. In this context, emerging market and developing economies face additional challenges stemming from both external conditions and domestic factors.

    On the external front, many EMDEs continue to face elevated public debt levels and rising debt servicing burdens. The prevailing environment of still tight global financial conditions is exacerbating these challenges, constraining fiscal space, and forcing difficult tradeoffs between repaying creditors and investing in critical areas for productivity, growth and development. These also represent a risk to macroeconomic stability, as debt maturities and rising debt service payments hinder fiscal consolidation plans, which are necessary to tackle domestic imbalances, maintain price stability, and foster a stable macroeconomic environment for investment and growth.

    On the domestic front, weak fiscal fundamentals are at the core of macroeconomic instability, while many of us face longstanding structural policy challenges that hold back productivity and competitiveness.

    The building up of external and fiscal imbalances amid public spending pressures that exceed revenues and with constrained access to international financial markets further erodes macroeconomic stability.

    Furthermore, domestic environments perceived as unsafe for investment dominated by overly complex legislation and inefficient and burdensome tax systems add to macroeconomic instability to further discourage much‑needed private capital inflows.

    As stated in the communiqué, domestic policymaking is the first line of defense. The best way to enhance short‑term domestic responsiveness, as well as medium‑term growth capacity is through solid macroeconomic frameworks combined with clear rules that foster a predictable environment for private investment.

    Pivoting to our fiscal consolidation to set debt on a sustainable path and rebuild buffers while advancing with productivity‑enhancing‑market reoriented structural reforms must remain priorities for the domestic policymaking. Whereas doing so while maintaining social cohesion and protecting the most vulnerable can be challenging, it can be achieved with careful policy calibration.

    But as these measures may take some time to deliver, mobilizing sufficient international support is also crucial to help countries meet their financing needs while they navigate the waters towards a healthier economy. The Bretton Woods Institutions remain crucial, necessitating decisive actions to fortify the Global Financial Safety Net and broaden development finance. The IMF’s role as a centerpiece of the Global Financial Safety Net is vital in addressing multilateral challenges and supporting vulnerable countries. We appreciate the IMF’s recent reforms to better support EMDEs, such as the recent review of the charges and surcharges policies.

    However, countries with limited access to affordable short‑term and crisis‑related liquidity continue to face vulnerabilities. It is essential to address liquidity pressures and strengthen crisis prevention and response capabilities, including enhancing existing financial safety nets. Surveillance and internal and external stability should be intensified, including on spillover effects from systematically important countries. The World Bank has made progress in implementing the Evolution Program, but further progress is required in operationalizing key aspects of the framework of financial incentives and reducing IBRD loan pricing. Faster implementation of the remaining G‑20 Independent Experts Groups Recommendations on MDB reforms is needed, including mitigating currency risks through local currency lending and domestic capital market reforms, de‑risking private‑sector investment, and increasing capital within the WBG and across the MDB system.

    Swift progress on the 2025 shareholding review is necessary to address misalignments, strengthen voice and representation, enhance IBRD legitimacy, and ensure equitable voting power.

    In sum, the path to sharp growth and a steady growing economy is multifaceted. We must do our part and commit to strengthen fiscal and monetary frameworks, build robust institutions, and embrace structural reforms that promote competitiveness, productivity gains, and job creation, but at the same time we need global financial institutions that recognize domestic efforts and are willing and well‑prepared to step up for these countries. Thank you, and with these remarks, I am now ready to entertain your questions.

    Mr. Devahasadin: Thank you, Mr. Chair. Before we begin the Q&A section, I kindly ask that all questions remain within the scope of the G‑24’s mandate and responsibilities. Other questions outside of its purview, of course, should be raised during the regional press conferences that are going to be taking place in the coming days. And please kindly identify yourself, your organization, your news outlet, and specify to whom your questions would like to be addressing. With that, any questions? Yes, sir.

    QUESTION: Good morning to everybody. Mr. Quirno, you just said that the Bretton Woods Institutions are crucial. Does any of you feel that their role, their functioning is endangered currently? Thank you for answering this question.

    Mr. Devahasadin: Thank you.

    Mr. Quirno: I think globally we are facing a period of volatility and uncertainty. As such, the Bretton Woods Institutions are crucial in providing the safety net and the channels of communication that remain open among the different countries that participate in those institutions. And I think the role is very, very important. And we do not see them—I mean, we are always rebalancing their role and their task, and it is something that is a process that we do constantly. At the end of the day, the role is vital. It is very important, and we do not see them at risk as you put it.

    Mr. Devahasadin: Minister Edun.

    Mr. Edun (Nigeria): Thank you. I agree with the Chair that there is nothing that we have heard that says that the Bretton Woods Institutions stands ready to do anything other than on the one hand, provide safety net. On the other hand, continue to provide development finance. If anything, this time of heightened global uncertainty, what we have heard from them is that they stand ready and are very much willing and capable to help countries to navigate this particular time and to continue to encourage good policymaking, to encourage resilience, building of resilience, building of buffers and effectively staying the course for those who are actually on a path that will take them further along the road to growth development and reduction of poverty.

    Mr. Devahasadin: Thank you. Governor Ahmad or Ms. Masha, would you like to add anything?

    Mr. Ahmad: No, it is OK. I think we fully agree with the views expressed by the Chair and the Vice. I think the increased uncertainty and the prevailing situation, it has become much more important for the Bretton Woods Institutions to continue to play their role and particularly as the financial safety net providers and also as the development partners. I think they have a role which will continue to be there, and they will be contributing in the performance of the road previously—that they have been doing previously, so I fully agree.

    Mr. Devahasadin: Thank you. Ms. Masha?

    Ms. Masha (G-24 Secretariat): Yes. We believe that the organizations are very useful, and the usefulness is very much appreciated, and so we do not have any uncertainty about their continued relevance. And we do hope that whatever actions countries are taking, the advanced economies are taking, they will factor into their decision the very good usefulness of these organizations. Thank you.

    Mr. Devahasadin: Thank you. Going back to the floor. Any question? Right here, lady with the glasses.

    QUESTION: My question is for Mr. Jameel Ahmad. What steps is the State Bank of Pakistan taking? Is it engaging with other central banks to mitigate risks, particularly in the G‑24 framework? Thank you.

    Mr. Ahmad: I think as initially said that if there is any specific questions pertaining to the State Bank, we can discuss that during the separate conferences, which we have, but for the time being, since we are in the G-24 platform, we are coordinating with other central banks, and we discussed all these issues during the yesterday’s Deputies Meeting as well as today’s meeting also of the G-24. These are the issues faced by the G-24 members and have been thoroughly discussed and the stance has been agreed upon. This is what is contained in the communiqué which is being issued today.

    Mr. Devahasadin: Going back to the floor, maybe in the midsection I saw some hands. I will start with you in the black. Thank you. We are going to make our way back. Yes.

    QUESTION: So, I have a couple questions for everyone here. First of all, how concerned are your members from the fallout from tariffs and what are they trying to do to try to mitigate the impacts? Also, are you planning to work more closely with each other, for instance, increasing trade with each other? And lastly, specifically, are you planning on working more closely with China, for instance?

    Mr. Devahasadin: Just to add to that, I got an advanced question Sri Lanka. In the light of reciprocal tariff currently in place, what strategy is the G‑24 considering as a working group to alleviate the pressure on emerging economies? So that is related to your question as well. Mr. Chair.

    Mr. Quirno: Thank you. Thank you for the questions. I think that it is important to understand that the G‑24 is a very diverse group of countries, and everyone, each of us has its own peculiarities, strengths, and weaknesses in the midst of the current trade situation. So, what I would say is that the fallout of this uncertainty that we are facing creates more volatility. And as emerging market countries and developing countries, what you face is a situation in which, in addition to the trade tensions, you have a situation on the capital markets and the capital flows, things that are based on the uncertainty. What happens is flows are expecting a solution. As one of the members said today, we can deal with good news. We can deal with bad news. We need to know what to do under uncertainty. You know, as we are going through this process of trade negotiations globally and as definitions are set, then we will know how to react. In the meantime, as we said in the communiqué and as we said in my opening remarks, the first line of defense, the thing that is within our country’s contro, is around the domestic agenda. We need to bring resilience into our own economies in such a way that we have a fiscal path that is credible, that we have sound monetary policies as well that back that fiscal consolidation program, because at the end of the day that is what investors are looking at.

    Investors are looking at the different countries’ situation and see how they can cope with this level of uncertainties. We have faced different levels, different crises in the past — globally, the pandemic being the last one. And we have, as a collective number of countries, been able to achieve a level of resilience that is very good. I mean, that resilience is being tested once again. That is why we also need to work in conjunction among the different countries, not only G‑24 but in a global context to address the situation. But I think the homework also needs to be consolidated at home in order to then continue moving forward. And as such, we are also obviously fostering our trade relationships among the different countries. We are doing it among the G‑24, among G‑20, so there are various areas of cooperation and consolidation there as well.

    Mr. Devahasadin: Any perspective from Ms. Masha in terms of coordination, collaboration across nations?

    Ms. Masha: Well, I think the Chair has pointed out some of those issues regarding macroeconomic stability, that is when these shocks manifest, there’s need for fiscal policies, sound monetary policies. But more along that line, it also provides opportunities for countries to pivot towards a different development pathway. Maybe going into sectors that are going to satisfy domestic demand will make them less prone to external shocks and diversifying their markets, the different markets, so they can better cope with the future tariff or trade policies. Thank you.

    Mr. Devahasadin: Thank you. Going back to the floor, I see hands right there all the way in the back, the lady in beige. We will come back to the front.

    QUESTION: Thank you for taking our questions. A question for everyone, sort of piggybacking off of my colleague’s question on tariffs. How does the G‑24 weigh the inflationary risks versus risks of recession from the current tariff environment? And then one for the Argentina Secretary, you spoke about debt maturities and rising debt payments, more than 4 billion in debt many coming due for Argentina in July right after an ambitious reserve target accumulation from the IMF. How does Argentina plan to confront those payments and is there a target that it is looking back to return to capital markets? Thank you.

    Mr. Quirno: In terms of the first question related to inflationary pressures and related to the trade situation, we had this morning the World Economic Outlook conference in which we had details on that perspective, but I think also it is very early to tell on how this is going to at the end of the day be moving forward. We are not in the business—at least I am not in the business of projecting inflation in my own country. It is very difficult to try to project inflationary pressures on a global basis, but I think it is—as I said before, we are living in uncertain times. We expect that trade negotiations that are currently underway reach a good point that is satisfactory to everyone involved, and that will normalize trade flows from that perspective onwards. In terms of Argentina—I mean, despite the fact that it is a common theme throughout the G‑24—what we are trying to do in Argentina for the last 15 months is basically gain our credibility back. And as such, we have elected a very conservative and unorthodox approach to the problems that Argentina had. And one of the problems that Argentina had was on the fiscal front. And we have done a tremendous fiscal consolidation. We put our house in order, on the monetary front as well. And that track record is one that will put us in a path to regaining market access eventually.

    Having said that, from my perspective, as the CFO of the country, what I can say is that we work at it very conservatively. I am not assuming that Argentina will be able to re‑access markets at a given time. But we have certainty that the maturities are coming due. That is why we have worked in the past in showing our willingness to pay. We have honored all our commitments. We have now a new IMF program, which has started to work very well, as expected. And in addition to that, because of that conservative, look, we have already accumulated reserves. The Treasury has bought a significant amount of dollars that it has at the central bank to honor those obligations. So, we do not expect to—we cannot speculate about when Argentina will be able to re‑access international markets. When those will happen, when that situation happens, we will address it. But in the meantime, we still work as if we have no access, and we have to pay down our obligations as we did in this last 15 months.

    Mr. Devahasadin: Thank you, I see three remaining hands. I will come back to the front with the lady in the brown jacket first and then I go to that side of the room. I see two hands. Please keep your questions short. We have limited time. Thank you.

    QUESTION: Hi. My question is regarding—we have seen the U.S. called back on some of the financings that it gives to developing economies, so in terms of financing the sustainable development goals, as well as climate action, could you talk about some of the challenges there?

    Mr. Devahasadin: Are your questions related to climate so we can collect them both? Anyone on climate here.

    Mr. Quirno: We face several challenges and as such, for that, many countries rely on the World Bank and the IMF, to basically be able to develop tools to finance that development, finance climate action, to finance infrastructure, and as such, we are at a period in which you have to—countries have to balance that in turn with their own macroeconomic situation in that respect. We need to—we have many of our countries in the G‑24 have significant natural resources that need to be developed. Those are the ones that are part of the transition energy, for example. And those are situations in which you cannot access private financing. The role of development financing in terms of climate, in terms of energy transition, et cetera, is very important. But those are challenges that are on the table that we need to address, and we are addressing together as a group and as an individual country as well.

    Mr. Devahasadin: Thank you. Go back to the floor. Gentleman back here and we can go all the way back to you, sir.

    QUESTION: Thank you. Two questions. You brought back fiscal discipline to Argentina, but can you quantify the harmful effects on the lives of the citizens? That is what want to talk about, the strikes, the protests, the fact that people do not have money in their pockets. Secondly, you also talked about building resilience, how do we build resilience where most of the countries in the G‑24 have one similar problem, a lot of visionless leadership, definitely, and a lot of poverty. Our arms are already tied behind our hands economically. How do you expect us to build resilience?  We are just led to the slaughter slap.

    Mr. Devahasadin: Thank you. Can I go all the way back to the back, the gentleman in the back, please?

    QUESTION: Thank you for taking my question. I wanted to touch on debt restructuring. In October you called on the reform of the Common Framework, and I am curious to know more about what sort of reform moves you have seen since then and also what types of reforms the G‑24 would like to see to the Common Framework. Thank you.

    Mr. Quirno: To the first question, I hate to make reference to Argentina, but the question was directly addressed to that situation. Argentina was facing a very dire situation—55 percent poverty rate before this administration took office. We have worked very, very strongly to do a couple of things that basically went straight to address that situation by having done our fiscal consolidation. We basically reduced 5 percentage points of GDP deficit in a month, something that has not been done probably anywhere else in the world so far. But we did it because we knew that we had no alternative. And at the end of the day, what happened is that the myth is that by doing such an adjustment, you would enter into a deep recession. Argentina rebounded out of its recession that was two and a half years long two months after that fiscal consolidation.

    Since then, real wages have increased for 10 months straight. Poverty levels have been reduced from 54 percent to 38 percent in about a year. And economic activity has increased 6 percent December 2024 from December 2023 when we took over. It can be done. That is the message. You know, there is preoccupations before, during such a big adjustment as we did, but it pays out. It takes the political will to do it. Everyone knows what needs to be done on the fiscal and monetary fronts. The books have been written about it. What happens is you need the political willingness to attack the problem because that may hurt politicians when they make those decisions. We have a very strong leadership in President Milei — the one that has said we need to go in this. What he has said is we need to take care of the most vulnerable. We doubled in real terms, while being able to achieve our financial surplus. We were able to double in real terms the assistance to the most vulnerable. And that is something that basically shows the amount of corruption and intermediation that was on the social plans that the national government was spending on. So now those funds have been redirected. It is funny that we doubled the expenditures in real terms, but the amount that people received more than tripled. We spent 100, and we are now spending 200 in real terms. People got 60. They received 60, and then they are receiving 200. That is a big—very big realization from the most vulnerable population that they have been robbed for years. Because by maintaining fiscal consolidation, by maintaining a financial surplus, we were still able to double the assistance to the most vulnerable.

    Mr. Devahasadin: We go to Ms. Masha on debt restructuring because you spoke about it last time.

    Ms. Masha: Debt restructuring?

    Mr. Devahasadin: The Common Framework. Yes, the progress on that.

    Ms. Masha: I want to add a little to what the Chair said in response to the question before I go to the Common Framework.

    Mr. Devahasadin: Yes.

    Ms. Masha: That is just to say that the G‑24 member countries, we have some of the largest economies in the world as members of G‑24, and the good thing is that the growth, the size of their economy, most of them over the past two or three decades, China, India and Brazil. So that takes a lot of vision. That takes a lot of implementations of the right policies. So, it is not quite a visionless leadership, but they have had to take policies that enable the countries to achieve what they have been able to achieve over such a short period of time.

    On the Common Framework — where we are on the Common Framework is that some countries have used it. Some have found it beneficial. The only complaint—well, some of the complaints we have heard about is that the process takes a very long time. And during that long time, they are not able to access the market, or they have to take some difficult decisions when they do not know how it is going to play out. And we also made that position known. The second, the other issue is we need more participation of the private market, maybe of also multilateral development banks, and also to have some precise idea of how it will play out. Some middle‑income countries have been asked to be a part of it. That is not really in discussion now, but all in all, countries have benefited from it, but there could be more benefit. Thank you.

    Mr. Devahasadin: Mr. Chair, you would like to add anything?

    Mr. Quirno (Argentina): No.

    Mr. Devahasadin: We are out of time. Unfortunately, Minister Edun had another obligation. If you have any follow‑up question, send it to press@G24.org. That was in the advisory, how to contact the G‑24. The communiqué should have been posted on IMF.org and the transcript of this press conference will be made available later. Thank you very much for joining this press conference and have a good rest of your day. Thank you.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Pavis Devahasadin

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/04/24/tr-04242025-g24-press-briefing

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI United Nations: 24 April 2025 Departmental update Learning 4 Impact: strengthening frontline and community-focused learning for health emergencies

    Source: World Health Organisation

    The WHO Health Emergencies Programme, with the support of the WHO Academy, recently hosted Learning 4 Impact 2025, a series of virtual workshops that aims to catalyse build back better holistic learning programmes to address post-pandemic challenges.

    The world is not on track to achieve its health-related Sustainable Development Goal (SDG) and targets by 2030; progress is at half the required rate of change. The increasing number of global crises and the danger of future pandemics underscore the urgent need for health systems to strengthen both technical capacity and community engagement.

    Addressing critical skills gaps among health and care workers is crucial to meeting these emergency needs in the future, but there is a chronic shortage of public health professionals and health workers around the world. According to WHO estimates, there will be a shortfall of at least 10 million health workers by 2030.

    In addition, the International Health Regulations (IHR) are undergoing several amendments in response to the lessons learned during the COVID-19 pandemic. Member States agreed to a package of amendments to the IHR in 2024 that should come into force in mid-2025. This will result in a new demand for training from Member States to implement the new and updated IHR core capacities.

    The Learning 4 Impact series, which took place over the course of February and March, is focused on the training needs of health and care workers, particularly those in low- and middle-income countries (LMICs), who serve on the frontline of public health emergency response. The workshops were aimed at IHR focal points and those working in community protection in WHO Member States, as well as WHO technical staff and partners across the globe.

    Competency-based learning for better community protection

    Within the context of WHO’s Health Emergency Preparedness, Response and Resilience (HEPR) framework, community protection plays a critical role in ensuring that emergency preparedness and response efforts are grounded in the realities of the people they serve. Community-centred approaches are essential for effective leadership in health emergencies, ensuring that interventions are trusted, inclusive and responsive to local needs.

    “Community protection is a cornerstone of emergency response. Strengthening the learning ecosystem for those working with and within communities helps us build trust, respond more effectively and ultimately save lives. This is a crucial step towards embedding community protection into the way we prepare for and respond to public health threats,” said Dr Kai von Harbou, Unit Head for Community Protection and Resilience in the WHO Health Emergencies Programme.

    Throughout the five virtual workshops, 600 participants worked together to map existing health learning products, provide insights on preliminary learning needs analyses for their countries, and identified and redefined target health learning audiences

    Community health workers (CHWs) were identified as a key learning audience, particularly in LMICs where they often serve as the first point of contact in health emergencies. Their learning needs were systematically mapped and prioritized, recognizing the crucial role CHWs play in community engagement, disease detection, risk communication and basic service delivery during crises.

    “Community health workers often operate with limited resources, unclear roles in emergency protocols and without adequate training. By investing in structured, competency-based learning the Community Protection and Resilience Unit empowers CHWs to act confidently and effectively in times of crisis – an investment that strengthens both response outcomes and long-term community resilience,” Dr von Harbou added.

    Lifelong learning for better health outcomes

    Together with key experts from the WHO Academy, participants also discussed innovative strategies and modalities that can improve the health learning experience. Following these workshops, both the IHR and community protection focal points plan to conduct more extensive learning needs analyses with their respective target learners and develop curriculum plans in collaboration with WHO. Feedback from post-webinar evaluation surveys was mainly positive. One of the participants said, “I love the fact that the Organization takes time to get feedback from the Member States on the strategies that are used so as to improve their work. This is really good.”

    Head of the Learning Design and Production Unit at the WHO Academy Melinda Frost says that to reach the SDG health targets, health systems and health and care workers need to make better use of evidence-based solutions and focus on competency-based learning.

    “Learning needs to be continuous. Health-care practices are consistently evolving, and we need to ensure that our health and care professionals continually acquire the new skills needed to deliver programmes and services for essential public health functions,” she said. “Our aim is to reach learners in LMICs, where the need is greatest. This is the Academy’s priority – to reach learners in these countries, driving equity in access to learning for health and care workers globally.”  

    MIL OSI United Nations News

  • MIL-OSI: ACNB Corporation Reports 2025 First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    GETTYSBURG, Pa., April 24, 2025 (GLOBE NEWSWIRE) — ACNB   Corporation   (NASDAQ:   ACNB)   (“ACNB”   or   the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced a net loss of $272 thousand, or $0.03 diluted loss per share, for the three months ended March 31, 2025 compared to net income of $6.8 million, or $0.80 diluted earnings per share, for the three months ended March 31, 2024 and compared to net income of $6.6 million, or $0.77 diluted earnings per share, for the three months ended December 31, 2024.

    Financial results for the three months ended March 31, 2025 were impacted by two discrete items that were related to the acquisition of Traditions Bancorp, Inc. (“Traditions”): a provision for credit losses on non- purchase credit deteriorated (“PCD”) loans of $4.2 million, net of taxes, and merger-related expenses, net of taxes, totaling $6.2 million.

    2025 First Quarter Highlights

    • ACNB closed the acquisition of Traditions effective February 1, 2025 (“Acquisition”). This strategic acquisition will result in a premier community bank that is locally headquartered, managed, and focused.
    • Traditions contributed, after acquisition accounting adjustments, $877.7 million in assets, $648.5 million in loans and $741.5 million in deposits at the Acquisition date.
    • Fully taxable equivalent (“FTE”) net interest margin was 4.07% for the three months ended March 31, 2025 compared to 3.81% for the three months ended December 31, 2024 and 3.77% for the three months ended March 31, 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.5 million for the three months ended March 31, 2025.
    • The allowance for credit losses was $24.6 million at March 31, 2025 compared to $17.3 million at December 31, 2024 and $20.2 million at March 31, 2024. The increases from both prior periods were driven primarily by an initial allowance for credit losses of $5.5 million for non-PCD loans and $1.5 million for accruing PCD loans at the Acquisition date.
    • Tangible common equity to tangible assets ratio1 of 9.33% at March 31, 2025 compared to 10.72% at December 31, 2024 and 9.61% at March 31, 2024. The net unrealized loss on the available for sale securities portfolio was $39.7 million at March 31, 2025 compared to a net unrealized loss of $47.7 million at December 31, 2024 and a net unrealized loss of $53.0 million at March 31, 2024.
    • As announced on Form 8-K on April 23, 2025, the Board of Directors approved and declared a regular quarterly cash dividend of $0.34 per share of ACNB Corporation common stock for the second quarter, reflecting a $0.02, or 6.3%, increase over the same quarter of 2024. ACNB repurchased 75,872 shares of ACNB common stock in open market transactions during the three months ended March 31, 2025.

    “At ACNB Corporation, we remain focused on executing our strategic plan to be the community bank of choice in the markets that we serve by building relationships and finding solutions for our customers. As a result, we are pleased to share our first quarter operating results. The quarter represents a solid start to a new year and exciting opportunities for our future,” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

    “We are pleased and excited to welcome Traditions Bancorp, Inc. shareholders, employees and customers to the ACNB family as we successfully completed our acquisition in the first quarter. In addition, at the close of the acquisition, three former Traditions directors, Eugene J, Draganosky, Elizabeth F. Carson and John M. Polli joined the Boards of Directors of ACNB Corporation and ACNB Bank. We believe this combination brings together organizations that are unified by a shared vision to banking to create an even stronger community bank and substantially enhance our presence in York and Lancaster counties.”

    Mr. Helt continued, “We are cautiously optimistic for the remainder of 2025 in spite of the uncertain economic headwinds as a result of ongoing tariff turmoil. We are not only focused on the challenges, but also the exciting opportunities that lie ahead and are fully committed to the continued growth and profitability of ACNB Corporation and to enhancing long term shareholder value.”

    Acquisition Update

    During the first quarter of 2025, ACNB acquired Traditions, holding company for Traditions Bank, York, Pennsylvania. Traditions was merged with and into a wholly-owned subsidiary of ACNB Corporation immediately followed by the merger of Traditions Bank with and into ACNB Bank effective February 1, 2025. ACNB Bank is operating the former Traditions Bank offices as “Traditions Bank, A Division of ACNB Bank”. The acquisition method of accounting was used to account for the acquisition. ACNB recorded the assets and liabilities of Traditions at their respective fair values as of February 1, 2025. The transaction was valued at approximately $83.8 million and substantially expanded ACNB’s footprint in the York and Lancaster, Pennsylvania markets. Traditions contributed, after acquisition accounting adjustments, $877.7 million in assets, $648.5 million in loans and $741.5 million in deposits at the Acquisition date. The excess of the merger consideration over the fair value of Traditions assets acquired and liabilities assumed resulted in goodwill of $20.3 million.

    As of March 31, 2025, total acquisition accounting adjustments on loans were $24.5 million. The majority of the loan acquisition accounting adjustments are expected to accrete back through as income as loans pay off or mature. Total acquisition accounting adjustments on time deposits were $226 thousand as of March 31, 2025. The acquisition accounting adjustments on time deposits are expected to amortize as an expense over the life of the time deposits. The core deposit intangible was $18.3 million as of March 31, 2025.

    ________________________________________
    1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.

    The core deposit intangible is expected to amortize as an expense over an expected life of 10 years using sum of the year’s digits method. The acquisition accounting adjustments are subject to refinement for up to one year from the acquisition date as allowable by U.S. Generally Accepted Accounting Principles (“GAAP”).

    ACNB recorded an allowance for credit losses of $6.9 million at the Acquisition date, comprised of $5.5 million for non-PCD loans, which was recognized through the provision for credit losses, and $1.5 million for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans.

    ACNB completed, following the Acquisition date, the sale of approximately $98.0 million of Traditions’ investments with a yield of 5.03%. With the proceeds from the sale, ACNB paid off $40.2 million of Federal Home Loan Bank (“FHLB”) borrowings with a cost of 4.73% and invested the remainder of the proceeds into investment securities with a yield of 5.07%.

    ACNB’s financial results for any periods ended prior to February 1, 2025 reflect ACNB on a standalone basis. As a result, ACNB’s financial results for the three months ended March 31, 2025 may not be directly comparable to prior reported periods.

    Net Interest Income and Margin

    Net interest income for the three months ended March 31, 2025 totaled $27.1 million, an increase of $6.5 million from the three months ended March 31, 2024 and an increase of $6.0 million from the three months ended December 31, 2024. The increases were driven primarily by the Acquisition. The FTE net interest margin for the three months ended March 31, 2025 was 4.07%, a 30 basis points increase from the three months ended March 31, 2024 and a 26 basis points increase from the three months ended December 31, 2024. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $1.5 million for the three months ended March 31, 2025. For the three months ended March 31, 2025, total average loans increased $499.3 million compared to three months ended March 31, 2024 and increased $461.3 million compared to the three months ended December 31, 2024. The yield on total loans was 6.08% for the three months ended March 31, 2025, an increase of 71 basis points compared to the three months ended March 31, 2024 and an increase of 47 basis points from the three months ended December 31, 2024. The increases in total average loans and yields on total loans were driven primarily by the Acquisition. For the three months ended March 31, 2025, total average interest-bearing deposits increased $421.8 million from the three months ended March 31, 2024 and increased $406.8 million from the three months ended December 31, 2024. The average rate paid on interest-bearing deposits was 1.38% for the three months ended March 31, 2025, an increase of 73 basis points from the three months ended March 31, 2024 and an increase of 42 basis points from the three months ended December 31, 2024. The increases in average interest-bearing deposits and average rate paid on interest-bearing deposits were driven primarily by the Acquisition. For the three months ended March 31, 2025, total average noninterest-bearing demand deposits increased $26.3 million from the three months ended March 31, 2024 and increased $48.0 million from the three months ended December 31, 2024. The increase in total average noninterest-bearing demand deposits was driven primarily by the Acquisition.

    Noninterest Income

    Noninterest income for the three months ended March 31, 2025 was $7.2 million, an increase of $1.5 million from the three months ended March 31, 2024 and an increase of $1.4 million from the three months ended December 31, 2024. Gain from mortgage loans held for sale for the three months ended March 31, 2025 was $855 thousand, an increase $807 thousand from the three months ended March 31, 2024 and increase of $748 thousand from the three months ended December 31, 2024. Earnings on investment in bank-owned life insurance for the three months ended March 31, 2025 was $580 thousand, an increase of $103 thousand from the three months ended March 31, 2024 and increase of $74 thousand from the three months ended December 31, 2024. The increases in gain from mortgage loans held for sale and earnings on investment in bank-owned life insurance for three months ended March 31, 2025 compared to the three months ended March 31, 2024 and three months ended December 31, 2024 were driven primarily by the Acquisition. Wealth management income was $1.1 million for the three months ended March 31, 2025, an increase of $98 thousand from three months ended March 31, 2024 and an increase of $53 thousand from the three months ended December 31, 2024. The increases in wealth management income were driven primarily by increased sales activity and market performance. Gain on life insurance proceeds was $254 thousand for the three months ended March 31, 2025 as a result of a death benefit paid on a life insurance policy.

    Noninterest Expense

    Noninterest expense for the three months ended March 31, 2025 increased $11.7 million from the three months ended March 31, 2024 and increased $10.9 million from the three months ended December 31, 2024. The increases were driven primarily by the Acquisition. Merger-related expense totaled $8.0 million for the three months ended March 31, 2025 compared to none for the three months ended March 31, 2024 and $885 thousand for the three months ended December 31, 2024. Salaries and employee benefits expense increased $1.7 million during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and increased $2.5 million compared to three months ended December 31, 2024 driven primarily by higher base wages as a result of the Acquisition, higher restricted stock compensation and higher payroll taxes. Net occupancy increased $312 thousand for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and increased $346 thousand compared to three months ended December 31, 2024 driven primarily by the Acquisition and higher snow removal costs. Equipment expense increased $551 thousand for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 driven primarily by the Acquisition. Equipment expense decreased $44 thousand for the three months ended March 31, 2025 compared to the three months ended December 31, 2024 as the prior quarter included incremental expenses of $355 thousand for the purchase of office equipment related to Acquisition. Intangible assets amortization increased $536 thousand during the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and increased $553 thousand compared to the three months ended December 31, 2024 driven by the Acquisition.

    Loans and Asset Quality

    Total loans outstanding were $2.32 billion at March 31, 2025, an increase of $639.3 million from December 31, 2024 and an increase of $657.2 million from March 31, 2024. The increases from both December 31, 2024 and March 31, 2024 were driven primarily by the Acquisition. The allowance for credit losses was $24.6 million at March 31, 2025, an increase of $7.4 million compared to December 31, 2024 and $4.5 million compared to March 31, 2024. The increase was driven primarily by an initial $5.5 million allowance for credit losses for non-PCD loans, which was recognized through the provision for credit losses, and a $1.5 million allowance for credit loss for accruing PCD loans, which was recognized as an acquisition accounting adjustment to the amortized cost basis of the acquired loans, at the Acquisition date. Reversal of $480 thousand was booked to unfunded commitments for the three months ended March 31, 2025 compared to a provision of $44 thousand and a reversal of $151 thousand for the three months ended December 31, 2024 and March 31, 2024, respectively.

    Non-performing loans were $10.0 million, or 0.43%, of total loans, net of unearned income, at March 31, 2025 compared to $6.8 million, or 0.40%, of total loans at December 31, 2024 and $3.9 million, or 0.24%, of total loans at March 31, 2024. The increase in non-performing loans at March 31, 2025 compared to March 31, 2024 was driven primarily by one long-standing commercial relationship in the healthcare industry, comprised of both owner-occupied commercial real estate and commercial and industrial loans, that moved into non-performing loan status during 2024 and by the Acquisition. The increase in non-performing loans at March 31, 2025 compared to the three months ended December 31, 2024 was driven primarily by the Acquisition. Annualized net charge-offs for the three months ended March 31, 2025 were 0.01% of total average loans compared to 0.04% for the three months ended December 31, 2024 and 0.00% for the three months ended March 31, 2024.

    Deposits and Borrowings

    Total deposits totaled $2.54 billion at March 31, 2025, an increase of $747.5 million from December 31, 2024 and an increase of $704.8 million from March 31, 2024. Included in total deposits at March 31, 2025 were $1.98 billion of interest-bearing deposits, which increased $636.3 million from December 31, 2024 and increased $641.7 million from March 31, 2024. Time deposits, included in interest-bearing deposits, increased $204.1 million and $219.8 million since December 31, 2024 and March 31, 2024, respectively. In January 2025, ACNB Bank issued $20.0 million in brokered time deposits to offset seasonal fluctuations in commercial deposits during the quarter, and ACNB assumed, as a result of the Acquisition, $15.0 million of brokered time deposits of which $5.0 million matured in February 2025. Total noninterest-bearing deposits were $562.7 million at March 31, 2025 compared to $451.5 million at December 31, 2024 and $499.6 million at March 31, 2024. The increases in total deposits, interest-bearing deposits, time deposits and noninterest-bearing deposits were driven primarily by the Acquisition.

    Total borrowings were $299.5 million at March 31, 2025, an increase of $28.4 million compared to December 31, 2024 and an increase of $26.9 million compared to March 31, 2024. The increases in total borrowings were driven primarily by general balance sheet management.

    Stockholders’ Equity

    Total stockholders’ equity was $386.9 million at March 31, 2025 compared to $303.3 million at December 31, 2024 and $279.9 million at March 31, 2024. The increase at March 31, 2025 compared to December 31, 2024 and March 31, 2025 was driven primarily by the equity issued in the Acquisition slightly offset by dividends paid of $3.4 million, common stock repurchased of $3.1 million and a $272 thousand net loss for the three months ended March 31, 2025. Tangible book value1 per share was $28.23, $29.51 and $26.70 at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. ACNB repurchased 75,872 shares of ACNB common stock in open market transactions during the three months ended March 31, 2025. As of March 31, 2025, there were 111,795 shares remaining under the current previously disclosed plan.

    ________________________________________
    1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.

    About ACNB Corporation

    ACNB Corporation, headquartered in Gettysburg, PA, is the $3.27 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 33 community banking offices and one loan office located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York, and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster, MD and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

    SAFE HARBOR AND FORWARD-LOOKING STATEMENTS – Should there be a material subsequent event prior to the filing of the Quarterly Report on Form 10-Q with the Securities and Exchange Commission, the financial information reported in this press release is subject to change to reflect the subsequent event. In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; banking instability caused by bank failures and financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of the Corporation’s consolidated financial statements when filed with the SEC. Accordingly, the financial information in this announcement is subject to change. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

    ACNB #2025-10
    April 24, 2025

     
     
    ACNB Corporation Financial Highlights
    Selected Financial Data by Respective Quarter End
    (Unaudited)
     
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    BALANCE SHEET DATA          
    Assets $         3,270,041     $         2,394,830     $         2,420,914     $         2,457,753     $         2,414,288    
    Investment securities   521,306       459,472       483,604       483,868       490,626    
    Total loans, net of unearned income   2,322,209       1,682,910       1,677,112       1,679,600       1,664,980    
    Allowance for credit losses   (24,646 )     (17,280 )     (17,214 )     (17,162 )     (20,172 )  
    Deposits   2,540,009       1,792,501       1,791,317       1,838,588       1,835,224    
    Allowance for unfunded commitments   1,883       1,394       1,349       1,310       1,569    
    Borrowings   299,531       271,159       293,091       304,286       272,605    
    Stockholders’ equity   386,883       303,273       306,755       289,331       279,920    
    INCOME STATEMENT DATA          
    Interest and dividend income $         36,290     $         27,381     $         27,241     $         26,869     $         25,974    
    Interest expense   9,200       6,269       6,299       5,905       5,381    
    Net interest income   27,090       21,112       20,942       20,964       20,593    
    Provision for (reversal of) credit losses   5,968       249       81       (2,990 )     223    
    (Reversal of) provision for unfunded commitments   (480 )     44       40       (259 )     (151 )  
    Net interest income after provisions for (reversal of) credit losses and unfunded commitments   21,602       20,819       20,821       24,213       20,521    
    Noninterest income   7,184       5,803       6,833       6,427       5,667    
    Noninterest expenses   29,335       18,388       18,244       16,391       17,662    
    (Loss) income before income taxes   (549 )     8,234       9,410       14,249       8,526    
    Income tax (benefit) expense   (277 )     1,639       2,206       2,970       1,758    
    Net (loss) income $         (272 )   $         6,595     $         7,204     $         11,279     $         6,768    
    PROFITABILITY RATIOS          
    Total loans, net of unearned income to deposits   91.43   %   93.89   %   93.62   %   91.35   %   90.72   %
    Return on average assets (annualized)   (0.04 )     1.08       1.17       1.86       1.12    
    Return on average equity (annualized)   (0.31 )     8.57       9.63       16.12       9.76    
    Efficiency ratio1   60.13       63.83       60.56       58.61       66.18    
    FTE Net interest margin   4.07       3.81       3.77       3.82       3.77    
    Yield on average earning assets   5.45       4.93       4.90       4.89       4.74    
    Yield on investment securities   2.91       2.58       2.59       2.65       2.70    
    Yield on total loans   6.08       5.61       5.56       5.53       5.37    
    Cost of funds   1.45       1.19       1.19       1.12       1.02    
    PER SHARE DATA          
    Diluted (loss) earnings per share $         (0.03 )   $         0.77     $         0.84     $         1.32     $         0.80    
    Cash dividends paid per share   0.32       0.32       0.32       0.32       0.30    
    Tangible book value per share1   28.23       29.51       29.90       27.82       26.70    
    CAPITAL RATIOS2
    Tier 1 leverage ratio   11.81   %   12.52   %   12.46   %   12.25   %   11.91   %
    Common equity tier 1 ratio   13.65       16.27       16.07       15.78       15.40    
    Tier 1 risk based capital ratio   13.86       16.56       16.36       16.07       15.69    
    Total risk based capital ratio   15.45       18.36       18.15       17.86       17.68    
    CREDIT QUALITY                                        
    Net charge-offs to average loans outstanding (annualized)   0.01   %   0.04   %   0.01   %   0.00   %   0.00   %
    Total non-performing loans to total loans, net of unearned income3   0.43       0.40       0.39       0.19       0.24    
    Total non-performing assets to total assets4   0.32       0.30       0.29       0.14       0.18    
    Allowance for credit losses to total loans, net of unearned income   1.06       1.03       1.03       1.02       1.21    

    ________________________________________
    1 Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.
    2 Regulatory capital ratios as of March 31, 2025 are preliminary.
    3 Non-performing Loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.
    4 Non-performing Assets consists of Non-performing Loans and Foreclosed assets held for resale.

     
    Consolidated Statements of Condition
    (Unaudited)
     
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 March 31, 2024
    ASSETS      
    Cash and due from banks $         23,422   $         16,352   $         17,395  
    Interest-bearing deposits with banks   100,141     30,910     35,740  
    Total Cash and Cash Equivalents   123,563     47,262     53,135  
    Equity securities with readily determinable fair values   933     919     918  
    Investment securities available for sale, at estimated fair value   455,819     393,975     425,114  
    Investment securities held to maturity, at amortized cost (fair value $56,219, $56,924 and $58,084)   64,554     64,578     64,594  
    Loans held for sale   21,413     426     88  
    Total loans, net of unearned income   2,322,209     1,682,910     1,664,980  
    Less: Allowance for credit losses   (24,646 )   (17,280 )   (20,172 )
    Loans, net   2,297,563     1,665,630     1,644,808  
    Premises and equipment, net   32,398     25,454     25,916  
    Right of use asset   5,440     2,663     2,447  
    Restricted investment in bank stocks   13,560     10,853     10,877  
    Investment in bank-owned life insurance   98,814     81,850     80,348  
    Investments in low-income housing partnerships   846     877     971  
    Goodwill   64,449     44,185     44,185  
    Intangible assets, net   25,835     7,838     8,761  
    Foreclosed assets held for resale   438     438     467  
    Other assets   64,416     47,882     51,659  
    Total Assets $         3,270,041   $         2,394,830   $         2,414,288  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Deposits:      
    Noninterest-bearing $         562,700   $         451,503   $         499,583  
    Interest-bearing   1,977,309     1,340,998     1,335,641  
    Total Deposits   2,540,009     1,792,501     1,835,224  
    Short-term borrowings   44,188     15,826     17,303  
    Long-term borrowings   255,343     255,333     255,302  
    Lease liability   5,790     2,764     2,447  
    Allowance for unfunded commitments   1,883     1,394     1,569  
    Other liabilities   35,945     23,739     22,523  
    Total Liabilities   2,883,158     2,091,557     2,134,368  
           
    Stockholders’ Equity:      
    Preferred Stock, $2.50 par value; 20,000,000 shares authorized; no shares outstanding at March 31, 2025, December 31, 2024 and March 31, 2024            
    Common stock, $2.50 par value; 20,000,000 shares authorized; 11,011,051, 8,945,293, and 8,928,441 shares issued; 10,543,671, 8,553,785, and 8,539,575 shares outstanding at March 31, 2025, December 31, 2024 and March 31, 2024, respectively   27,521     22,357     22,315  
    Treasury stock, at cost; 467,380, 391,508, and 388,866 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively   (14,309 )   (11,203 )   (11,101 )
    Additional paid-in capital   178,011     99,163     97,818  
    Retained earnings   230,978     234,624     217,712  
    Accumulated other comprehensive loss   (35,318 )   (41,668 )   (46,824 )
    Total Stockholders’ Equity   386,883     303,273     279,920  
    Total Liabilities and Stockholders’ Equity $         3,270,041   $         2,394,830   $         2,414,288  
     
    Consolidated Income Statements
    (Unaudited)
     
       Three Months Ended March 31,
    (Dollars in thousands, except per share data)   2025     2024  
    INTEREST AND DIVIDEND INCOME    
    Loans, including fees    
    Taxable $         31,676   $         21,470  
    Tax-exempt   292     319  
    Investment securities:    
    Taxable   2,902     2,911  
    Tax-exempt   288     284  
    Dividends   340     240  
    Other   792     750  
    Total Interest and Dividend Income   36,290     25,974  
    INTEREST EXPENSE    
    Deposits   5,996     2,160  
    Short-term borrowings   294     339  
    Long-term borrowings   2,910     2,882  
    Total Interest Expense   9,200     5,381  
    Net Interest Income   27,090     20,593  
    Provision for credit losses   5,968     223  
    Reversal of provision for unfunded commitments   (480 )   (151 )
    Net Interest Income after Provisions for (Reversal of) Credit Losses and Unfunded Commitments   21,602     20,521  
    NONINTEREST INCOME    
    Insurance commissions   2,147     2,115  
    Service charges on deposits   1,094     991  
    Wealth management   1,060     962  
    Gain from mortgage loans held for sale   855     48  
    ATM debit card charges   831     819  
    Earnings on investment in bank-owned life insurance   580     477  
    Gain on life insurance proceeds   254      
    Net gains on sales or calls of investment securities       69  
    Net gains (losses) on equity securities   14     (10 )
    Other   349     196  
    Total Noninterest Income   7,184     5,667  
    NONINTEREST EXPENSES    
    Salaries and employee benefits   12,861     11,168  
    Equipment   2,280     1,729  
    Net occupancy   1,442     1,130  
    Professional services   577     616  
    Other tax   527     370  
    FDIC and regulatory   401     375  
    Intangible assets amortization   857     321  
    Merger-related   8,031      
    Other   2,359     1,953  
    Total Noninterest Expenses   29,335     17,662  
    (Loss) Income Before Income Taxes   (549 )   8,526  
    Income tax (benefit) expense   (277 )   1,758  
    Net (Loss) Income $         (272 ) $         6,768  
    PER SHARE DATA    
    Basic (loss) earnings $         (0.03 ) $         0.80  
    Diluted (loss) earnings $         (0.03 ) $         0.80  
    Weighted average shares basic   9,806,299     8,493,104  
    Weighted average shares diluted   9,823,475     8,511,648  
                                                                                   
    Average Balances, Income and Expenses, Yields and Rates
                                                                                   
      Three months ended
    March 31, 2025
      Three months ended
    December 31, 2024
      Three months ended
    September 30, 2024
      Three months ended
    June 30, 2024
      Three months ended
    March 31, 2024
    (Dollars in thousands)   Average
    Balance
        Interest1 Yield/
    Rate
          Average
    Balance
        Interest1 Yield/
    Rate
          Average
    Balance
        Interest1 Yield/
    Rate
          Average
    Balance
        Interest1 Yield/
    Rate
          Average
    Balance
        Interest1 Yield/
    Rate
     
    ASSETS                                                                              
    Loans:                                                                              
    Taxable $ 2,080,231   $ 31,676 6.18 %   $ 1,619,245   $ 23,294 5.72 %   $ 1,618,879   $ 23,108 5.68 %   $ 1,612,380   $ 22,675 5.66 %   $ 1,573,109   $ 21,470 5.49 %
    Tax-exempt   57,969     370 2.59       57,683     366 2.52       62,401     394 2.51       64,276     396 2.48       65,825     404 2.47  
    Total Loans2   2,138,200     32,046 6.08       1,676,928     23,660 5.61       1,681,280     23,502 5.56       1,676,656     23,071 5.53       1,638,934     21,874 5.37  
    Investment Securities:                              
    Taxable   447,986     3,242 2.93       431,338     2,786 2.57       441,135     2,868 2.59       442,390     2,913 2.65       467,466     3,151 2.71  
    Tax-exempt   54,659     365 2.71       54,453     359 2.62       54,549     359 2.62       54,644     359 2.64       54,740     359 2.64  
    Total Investments3   502,645     3,607 2.91       485,791     3,145 2.58       495,684     3,227 2.59       497,034     3,272 2.65       522,206     3,510 2.70  
    Interest-bearing deposits with banks   73,181     792 4.39       60,104     728 4.82       48,794     670 5.46       50,851     684 5.41       54,156     750 5.57  
    Total Earning Assets   2,714,026     36,445 5.45       2,222,823     27,533 4.93       2,225,758     27,399 4.90       2,224,541     27,027 4.89       2,215,296     26,134 4.74  
    Cash and due from banks   20,603         20,413         21,684         21,041         20,540      
    Premises and equipment   29,903         25,679         25,716         25,903         26,102      
    Other assets   224,522         181,180         184,105         187,937         187,075      
    Allowance for credit losses   (19,939 )       (17,153 )       (17,147 )       (20,124 )       (19,963 )    
    Total Assets $ 2,969,115       $ 2,432,942       $ 2,440,116       $ 2,439,298       $ 2,429,050      
    LIABILITIES                                        
    Interest-bearing demand deposits $ 573,341     $         524   0.37 %   $ 519,833     $         511   0.39 %   $ 518,368     $         552   0.42 %   $ 513,163     $         275   0.22 %   $ 512,701     $         264   0.21 %
    Money markets   447,297       1,984   1.80       251,781       747   1.18       246,653       692   1.12       248,191       613   0.99       248,297       536   0.87  
    Savings deposits   331,103       27   0.03       315,512       34   0.04       318,291       26   0.03       327,274       30   0.04       335,215       29   0.03  
    Time deposits   410,749       3,461   3.42       268,559       1,987   2.94       258,053       1,842   2.84       263,045       1,725   2.64       244,481       1,331   2.19  
    Total Interest-Bearing Deposits   1,762,490       5,996   1.38       1,355,685       3,279   0.96       1,341,365       3,112   0.92       1,351,673       2,643   0.79       1,340,694       2,160   0.65  
    Short-term borrowings   38,721       294   3.08       23,087       12   0.21       38,666       204   2.10       37,256       304   3.28       47,084       339   2.90  
    Long-term borrowings   257,558       2,910   4.58       255,326       2,978   4.64       255,316       2,983   4.65       255,305       2,958   4.66       248,701       2,882   4.66  
    Total Borrowings   296,279       3,204   4.39       278,413       2,990   4.27       293,982       3,187   4.31       292,561       3,262   4.48       295,785       3,221   4.38  
    Total Interest-Bearing Liabilities   2,058,769       9,200   1.81       1,634,098       6,269   1.53       1,635,347       6,299   1.53       1,644,234       5,905   1.44       1,636,479       5,381   1.32  
    Noninterest-bearing demand deposits   512,966           464,949           477,350           485,351           486,648        
    Other liabilities   36,934           27,887           29,946           28,348           26,904        
    Stockholders’ Equity   360,446           306,008           297,473           281,365           279,019        
    Total Liabilities and Stockholders’ Equity $ 2,969,115         $ 2,432,942         $ 2,440,116         $ 2,439,298         $ 2,429,050        
    Taxable Equivalent Net Interest Income       27,245           21,264           21,100           21,122           20,753    
    Taxable Equivalent Adjustment       (155 )         (152 )         (158 )         (158 )         (160 )  
    Net Interest Income     $ 27,090         $ 21,112         $ 20,942         $ 20,964         $ 20,593    
    Cost of Funds       1.45 %         1.19 %         1.19 %         1.12 %         1.02 %
    FTE Net Interest Margin       4.07 %         3.81 %         3.77 %         3.82 %         3.77 %

    ________________________________________
    1 Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.
    2 Average balances include non-accrual loans and are net of unearned income.
    3 Average balances of investment securities is computed at fair value.


    Non-GAAP
    Reconciliation

    Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non- GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.

      Three Months Ended
    (Dollars in thousands, except per share data) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024
    Tangible book value per share          
    Stockholders’ equity $         386,883     $         303,273     $         306,755     $         289,331     $         279,920    
    Less: Goodwill and intangible assets   (90,284 )     (52,023 )     (52,327 )     (52,631 )     (52,946 )  
    Tangible common stockholders’ equity (numerator) $         296,599     $         251,250     $         254,428     $         236,700     $         226,974    
    Shares outstanding, less unvested shares, end of period (denominator)   10,506,822       8,515,347       8,510,187       8,507,191       8,501,137    
    Tangible book value per share $         28.23     $         29.51     $         29.90     $         27.82     $         26.70    
    Tangible common equity to tangible assets (TCE/TA Ratio)          
    Tangible common stockholders’ equity (numerator) $         296,599     $         251,250     $         254,428     $         236,700     $         226,974    
    Total assets $         3,270,041     $         2,394,830     $         2,420,914     $         2,457,753     $         2,414,288    
    Less: Goodwill and intangible assets   (90,284 )     (52,023 )     (52,327 )     (52,631 )     (52,946 )  
    Total tangible assets (denominator) $         3,179,757     $         2,342,807     $         2,368,587     $         2,405,122     $         2,361,342    
    Tangible common equity to tangible assets   9.33   %   10.72   %   10.74   %   9.84   %   9.61   %
    Efficiency Ratio          
    Noninterest expense $         29,335     $         18,388     $         18,244     $         16,391     $         17,662    
    Less: Intangible amortization   857       304       304       315       321    
    Less: Merger-related expense   8,031       885       1,137       23          
    Noninterest expense (numerator) $         20,447     $         17,199     $         16,803     $         16,053     $         17,341    
    Net interest income $         27,090     $         21,112     $         20,942     $         20,964     $         20,593    
    Plus: Total noninterest income   7,184       5,803       6,833       6,427       5,667    
    Less: Gain on life insurance proceeds   254                            
    Less: Net gains on sales or calls of securities                           69    
    Less: Net gains (losses) on equity securities   14       (28 )     28       1       (10 )  
    Total revenue (denominator) $         34,006     $         26,943     $         27,747     $         27,390     $         26,201    
    Efficiency ratio   60.13   %   63.83   %   60.56   %   58.61   %   66.18   %
    Contact: Jason H. Weber
      EVP/Treasurer & Chief Financial Officer
      717.339.5090
      jweber@acnb.com
       

    The MIL Network

  • MIL-OSI Global: How do children learn to read? This literacy expert says ‘there are as many ways as there are students’

    Source: The Conversation – USA – By K. Dara Hill, Professor of Reading and Language Arts, University of Michigan-Dearborn

    Not all children learn to read in the same way, but schools tend to adopt a single approach to literacy. luckyvector/iStock via Getty Images Plus

    Five years after the pandemic forced children into remote instruction, two-thirds of U.S. fourth graders still cannot read at grade level. Reading scores lag 2 percentage points below 2022 levels and 4 percentage points below 2019 levels.

    This data from the 2024 report of National Assessment of Educational Progress, a state-based ranking sometimes called “America’s report card,” has concerned educators scrambling to boost reading skills.

    Many school districts have adopted an evidence-based literacy curriculum called the “science of reading” that features phonics as a critical component.

    Phonics strategies begin by teaching children to recognize letters and make their corresponding sounds. Then they advance to manipulating and blending first-letter sounds to read and write simple, consonant-vowel-consonant words – such as combining “b” or “c” with “-at” to make “bat” and “cat.” Eventually, students learn to merge more complex word families and to read them in short stories to improve fluency and comprehension.

    Proponents of the curriculum celebrate its grounding in brain science, and the science of reading has been credited with helping Louisiana students outperform their pre-pandemic reading scores last year.

    In practice, Louisiana used a variety of science of reading approaches beyond phonics. That’s because different students have different learning needs, for a variety of reasons.

    Yet as a scholar of reading and language who has studied literacy in diverse student populations, I see many schools across the U.S. placing a heavy emphasis on the phonics components of the science of reading.

    If schools want across-the-board gains in reading achievement, using one reading curriculum to teach every child isn’t the best way. Teachers need the flexibility and autonomy to use various, developmentally appropriate literacy strategies as needed.

    Phonics fails some students

    Phonics programs often require memorizing word families in word lists. This works well for some children: Research shows that “decoding” strategies such as phonics can support low-achieving readers and learners with dyslexia.

    However, some students may struggle with explicit phonics instruction, particularly the growing population of neurodivergent learners with autism spectrum disorder or attention deficit hyperactivity disorder. These students learn and interact differently than their mainstream peers in school and in society. And they tend to have different strengths and challenges when it comes to word recognition, reading fluency and comprehension.

    This was the case with my own child. He had been a proficient reader from an early age, but struggles emerged when his school adopted a phonics program to balance out its regular curriculum, a flexible literature-based curriculum called Daily 5 that prioritizes reading fluency and comprehension.

    I worked with his first grade teacher to mitigate these challenges. But I realized that his real reading proficiency would likely not have been detected if the school had taught almost exclusively phonics-based reading lessons.

    Another weakness of phonics, in my experience, is that it teaches reading in a way that is disconnected from authentic reading experiences. Phonics often directs children to identify short vowel sounds in word lists, rather than encounter them in colorful stories. Evidence shows that exposing children to fun, interesting literature promotes deep comprehension.

    Balanced literacy

    To support different learning styles, educators can teach reading in multiple ways. This is called balanced literacy, and for decades it was a mainstay in teacher preparation and in classrooms.

    Balanced literacy prompts children to learn words encountered in authentic literature during guided, teacher-led read-alouds – versus learning how to decode words in word lists. Teachers use multiple strategies to promote reading acquisition, such as blending the letter sounds in words to support “decoding” while reading.

    Another balanced literacy strategy that teachers can apply in phonics-based strategies while reading aloud is called “rhyming word recognition.” The rhyming word strategy is especially effective with stories whose rhymes contribute to the deeper meaning of the story, such as Marc Brown’s “Arthur in a Pickle.”

    The rhyming structure of ‘Arthur in a Pickle’ helps children learn to read entire words, versus word parts.

    After reading, teachers may have learners arrange letter cards to form words, then tap the letter cards while saying and blending each sound to form the word. Similar phonics strategies include tracing and writing letters to form words that were encountered during reading.

    There is no one right way to teach literacy in a developmentally appropriate, balanced literacy framework. There are as many ways as there are students.

    What a truly balanced curriculum looks like

    The push for the phonics-based component of the science of reading is a response to the discrediting of the Lucy Calkins Reading Project, a balanced literacy approach that uses what’s called “cueing” to teach young readers. Teachers “cue” students to recognize words with corresponding pictures and promote guessing unfamiliar words while reading based on context clues.

    A 2024 class action lawsuit filed by Massachusetts families claimed that this faulty curriculum and another cueing-based approach called Fountas & Pinnell had failed readers for four decades, in part because they neglect scientifically backed phonics instruction.

    But this allegation overlooks evidence that the Calkins curriculum worked for children who were taught basic reading skills at home. And a 2021 study in Georgia found modest student achievement gains of 2% in English Language Arts test scores among fourth graders taught with the Lucy Calkins method.

    Nor is the method unscientific. Using picture cues with corresponding words is supported by the predictable language theory of literacy.

    This approach is evident in Eric Carle’s popular children’s books. Stories such as the “Very Hungry Caterpillar” and “Brown Bear, Brown Bear What do you See?” have vibrant illustrations of animals and colors that correspond with the text. The pictures support children in learning whole words and repetitive phrases, suchg as, “But he was still hungry.”

    Teacher-led read-alouds have been a mainstay learn-to-read activity in U.S. classrooms for decades.
    H. Armstrong Roberts/ClassicStock/Getty Images

    The intention here is for learners to acquire words in the context of engaging literature. But critics of Calkins contend that “cueing” during reading is a guessing game. They say readers are not learning the fundamentals necessary to identify sounds and word families on their way to decoding entire words and sentences.

    As a result, schools across the country are replacing traditional learn-to-read activities tied to balanced literacy approaches with the science of reading. Since its inception in 2013, the phonics-based curriculum has been adopted by 40 states and the Disctrict of Columbia.

    Recommendations for parents, educators and policymakers

    The most scientific way to teach reading, in my opinion, is by not applying the same rigid rules to every child. The best instruction meets students where they are, not where they should be.

    Here are five evidence-based tips to promote reading for all readers that combine phonics, balanced literacy and other methods.

    1. Maintain the home-school connection. When schools send kids home with developmentally appropriate books and strategies, it encourages parents to practice reading at home with their kids and develop their oral reading fluency. Ideally, reading materials include features that support a diversity of learning strategies, including text, pictures with corresponding words and predictable language.

    2. Embrace all reading. Academic texts aren’t the only kind of reading parents and teachers should encourage. Children who see menus, magazines and other print materials at home also acquire new literacy skills.

    3. Make phonics fun. Phonics instruction can teach kids to decode words, but the content is not particularly memorable. I encourage teachers to teach phonics on words that are embedded in stories and texts that children absolutely love.

    4. Pick a series. High-quality children’s literature promotes early literacy achievement. Texts that become increasingly more complex as readers advance, such as the “Arthur” step-into-reading series, are especially helpful in developing reading comprehension. As readers progress through more complex picture books, caregivers and teachers should read aloud the “Arthur” novels until children can read them independently. Additional popular series that grow with readers include “Otis,” “Olivia,” “Fancy Nancy” and “Berenstain Bears.”

    5. Tutoring works. Some readers will struggle despite teachers’ and parents’ best efforts. In these cases, intensive, high-impact tutoring can help. Sending students to one session a week of at least 30 minutes is well documented to help readers who’ve fallen behind catch up to their peers. Many nonprofit organizations, community centers and colleges offer high-impact tutoring.

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

    ref. How do children learn to read? This literacy expert says ‘there are as many ways as there are students’ – https://theconversation.com/how-do-children-learn-to-read-this-literacy-expert-says-there-are-as-many-ways-as-there-are-students-246468

    MIL OSI – Global Reports

  • MIL-OSI Global: Pope Francis’ death right after Easter sounds miraculous – but patients and caregivers often work together to delay dying

    Source: The Conversation – USA – By Michelle Riba, Clinical Professor of Psychiatry, University of Michigan

    Pope Francis died after celebrating Easter with his congregants. AP Photo/Gregorio Borgia

    On the morning of Easter Monday, after his final public address the day prior, Pope Francis died at age 88, closing 12 years of leading the Catholic Church. He joins the phenomena of people “holding on” until after an anticipated date or event, such as the holidays or a birthday, before dying.

    It sometimes seems like some patients are able to stay alive out of sheer willpower. But for many people, behind the scenes are a village of people and an ongoing series of conversations that help patients be able to celebrate their child’s graduation or travel to a place they’ve always wanted to go.

    We asked Dr. Michelle Riba, director of the psycho-oncology program at the University of Michigan Rogel Cancer Center, to explain how meaning matters just as much as medicine at the end of life.

    What factors come into play at the end of life?

    Psychosocial factors that affect a person’s mental health and well-being – such as stress, social support, depression and anxiety, and socioeconomic status – play an important part of all parts of life, but especially at the end of life. End of life refers to the days, weeks or months after somebody is told that they have a disease that can be fatal.

    Questions about meaning and what’s important to a patient and their family are important at all times. But when somebody is diagnosed with a grave illness, these questions become particularly important to acknowledge in medical conversations. As many doctors like to say, patients aren’t the disease, they have a disease.

    We want to give patients control about how they want to live their lives in the most meaningful way, especially at the end. And this includes how they want to use their time, energy and resources, who they want to spend their time with and where they want to be.

    How does the ‘will to live’ affect treatment and survival?

    There was a new movement starting in the 1960s to 1970s that believed a person’s attitude and outlook on life could affect their health and longevity. People like minister Norman Vincent Peale promoted the idea that a positive mindset could help improve outcomes. Psychologist Martin Seligman developed the field of positive psychology that focused on subjective well-being by promoting resilience and human flourishing. The idea that you could do better if you were optimistic resonated with many people, including physicians.

    Then surgeon Bernie Siegel proposed the specific idea that staying positive after a cancer diagnosis could extend your life, and that became a major focus of the movement. However, there was little to no data to support his claims. The studies researchers conducted to figure out whether it was true that people who were more positive lived longer or had a lower prevalence of cancer than those who did not were either flawed or did not consistently show this effect.

    Eventually Siegel’s ideas were disproved. But for a long time, they affected how patients felt about themselves and how their families addressed illness. My own patients would tell me, “How can I be positive? I can’t eat, I’m in pain and I’m sick.” They felt guilty that they couldn’t feel positive and optimistic, and that caused extra stress and reduced their quality of life.

    Learning about what matters most to a patient requires asking them.
    FG Trade/E+ via Getty Images

    Additionally, the social determinants of health – such as a patient’s environment, race, education and wealth – are also very important to their health and longevity. Having a good social life, money and not being discriminated against makes it easier to stay positive and do better in life. During the COVID-19 pandemic, people were less likely to do well if you didn’t have money, or if you were a certain race.

    Research shows that patients who have severe mental illness such as schizophrenia and bipolar disorder often live about 20 years less than somebody who doesn’t. And it’s not just because of the disease. Having a severe mental illness means that you probably can’t work, you probably don’t have financial means, and you may not have family support.

    How can doctors help patients feel like they have more control?

    In studying how patients could feel more confident, physicians like me realized that having control over their destiny, if you will, didn’t necessarily mean patients had to stay positive. Rather, it meant understanding the things that gave them joy and meaning before their diagnosis, and how clinicians could help them continue to do these things.

    For example, a patient who could no longer work because of their cancer or their treatments might miss their sense of routine. Working with them to make a schedule of all their medical appointments and enjoyable activities might help them take control over their days. The structure may provide meaning and help them cope better.

    A marathon runner who loses their ability to balance due to a brain tumor is another example. If this patient found meaning and pleasure in running but could no longer run, what could we do to help them regain some of this joy? This might look like starting physical therapy and rehab, or finding alternative activities they can do.

    If going to their place of worship is important to a patient but they’re no longer able to, we could see if their rabbi, imam or minister could see them at their home.

    Additionally, helping patients continue doing what’s meaningful for them also gives them hope. It helps them know that their physicians feel they’re worth doing that for, and that there’s a life beyond cancer treatment.

    How do a patient’s goals factor into their treatment plan?

    When doctors give patients hope, patients tend to have better outcomes. That doesn’t mean we’re telling patients something false, or that they’re going to live a longer time. Rather, doctors can help patients improve or maintain their quality of life and achieve certain goals.

    For example, a patient may be thinking of attending their child’s graduation two months from now. Their care team can talk to them about how they might be able to do this, or think of other ways they can celebrate.

    Feeling supported during a serious illness can make a big difference.
    Joshua Hoehne/Unsplash, CC BY-SA

    My mother passed away from cancer a month after I graduated high school. I remember she couldn’t participate in a lot of senior prom activities, like helping me get a dress or do my hair. But my date and I and another couple were allowed to go to her hospital room just before the prom so she could see us all dressed up. And it was one of the most meaningful moments of my life. Though she couldn’t be there for graduation or all the other preparations and celebrations, it mattered to my mother and me that she was able to see my friends and me before prom. Also, very meaningfully, my friends were so kind and thoughtful to make that effort on our behalf.

    There have been observations that some patients with terminal illness manage to hold on until after a certain holiday or date. A 1988 study found that the number of Jewish people who died before Passover was lower than expected, and the number of deaths after Passover was higher than expected. While this study had flaws and limitations, other researchers have made similar observations for deaths for specific groups after holidays like Christmas, the Mid-Autumn Festival and birthdays.

    But these studies don’t address whether those specific holidays were actually what these patients really cared about. It may be that people made it through something else important to them. It may be that they were able to be with the people they loved at the end. It may be something else entirely. We don’t really know what’s important for someone unless we ask.

    Allowing patients and their families to think about what matters most to them and how we can help them achieve their goals is part of our job as physicians.

    How do you balance a patient’s medical care with their goals?

    Being diagnosed with a terminal illness can be a traumatic event. Patients often can remember where and when they heard the news about a certain illness or scan or problem. How to help people process, understand and live with this to the best of their ability is really the key to having the best quality of life. This means giving them choices and helping them see some ways to address it for themselves and their families.

    Sometimes that can be really hard. For patients who really want to travel somewhere, we might figure out a way to defer specific treatments or procedures, or set up appointments for them to be done at the local hospital or clinic. But there’s not much we can do for a patient who wants to attend their young child’s wedding when that won’t be for decades in the future. The medical team does everything it can within reason, and it tries to make sure the patients and their loved ones understand the risks and benefits.

    Receiving bad news can be a traumatic event.
    Maskot/DigitalVision via Getty Images

    Doctors and patients may also have different goals that can be difficult to meet at the same time. Figuring out how to juggle these agendas and listening to each other during these conversations can be challenging but important.

    Everybody is trying to do what they think is right and best for the patient. This means taking care of the whole person, not just the disease. Whether that means reaching a certain holiday or special event, or just gathering together with the people they love, taking the time and effort to understand what is important for the patient and their family is key to good care.

    Michelle Riba chairs the National Comprehensive Cancer Network Distress Guidelines.

    ref. Pope Francis’ death right after Easter sounds miraculous – but patients and caregivers often work together to delay dying – https://theconversation.com/pope-francis-death-right-after-easter-sounds-miraculous-but-patients-and-caregivers-often-work-together-to-delay-dying-254970

    MIL OSI – Global Reports