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Category: Pandemic

  • MIL-OSI: West Bancorporation, Inc. Announces First Quarter 2025 Financial Results and Declares Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    WEST DES MOINES, Iowa, April 24, 2025 (GLOBE NEWSWIRE) — West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported first quarter 2025 net income of $7.8 million, or $0.46 per diluted common share, compared to fourth quarter 2024 net income of $7.1 million, or $0.42 per diluted common share, and first quarter 2024 net income of $5.8 million, or $0.35 per diluted common share. On April 23, 2025, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on May 21, 2025, to stockholders of record on May 7, 2025.

    David Nelson, President and Chief Executive Officer of the Company, commented, “In the first quarter of 2025, we have continued to see improvements in net interest margin and efficiency ratio compared to 2024, resulting in a significant improvement in net income compared to the first quarter of 2024. We are pleased with our progress in our balance sheet repricing efforts. Loan growth was modest in the first quarter, as expected with the current economic uncertainty.”

    David Nelson added, “One thing that remains the same is our best-in-class credit quality metrics. We had no loans past due greater than 90 days at March 31, 2025, and only one loan past due greater than 30 days with an insignificant balance of $181 thousand. We continue to identify high-quality opportunities for growing our core customer base in all of our markets.”

    First Quarter 2025 Financial Highlights
               
      Quarter Ended
    March 31, 2025    		   Quarter Ended
    December 31, 2024    		   Quarter Ended
    March 31, 2024
    Net income (in thousands) $7,842   $7,097   $5,809  
    Return on average equity 13.84%   12.24%   10.63%  
    Return on average assets 0.81%   0.68%   0.61%  
    Efficiency ratio (a non-GAAP measure) 56.37%   60.79%   62.04%  
    Nonperforming assets to total assets 0.00%   0.00%   0.01%  

    First Quarter 2025 Compared to Fourth Quarter 2024 Overview

    • Loans increased $11.6 million in the first quarter of 2025, primarily due to an increase in commercial loans and commercial real estate loans, partially offset by a decline in construction loans.
    • No credit loss expense on loans was recorded in the first quarter of 2025, compared to credit loss expense on loans of $1.0 million recorded in the fourth quarter of 2024. The credit loss expense on loans in the fourth quarter of 2024 was due to an adjustment to qualitative factors in the commercial real estate loan segment.
    • The allowance for credit losses to total loans was 1.01 percent at both March 31, 2025 and December 31, 2024. Nonaccrual loans at March 31, 2025 consisted of one loan with a balance of $181 thousand, compared to one loan with a balance of $133 thousand at December 31, 2024.
    • Deposits decreased $33.1 million, or 1.0 percent, in the first quarter of 2025. Brokered deposits totaled $335.5 million at March 31, 2025, compared to $266.4 million at December 31, 2024, an increase of $69.1 million. Excluding brokered deposits, deposits decreased $102.2 million, or 3.3 percent, during the first quarter of 2025. The decline in deposits was due to normal cash flow fluctuations of our core depositors. As of March 31, 2025, estimated uninsured deposits, which exclude deposits in the IntraFi® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 28.0 percent of total deposits.
    • Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.98 percent for the fourth quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $19.4 million for the fourth quarter of 2024. The increase in net interest margin and net interest income was primarily due to a decrease in deposit rates, driven by the Federal Reserve’s reductions of the federal funds target rate in the fourth quarter of 2024. The cost of deposits decreased 38 basis points in the first quarter of 2025, compared to the fourth quarter of 2024.
    • The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 60.79 percent for the fourth quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income and decrease in noninterest expense, partially offset by a decrease in trust services income.
    • The tangible common equity ratio was 5.97 percent as of March 31, 2025, compared to 5.68 percent as of December 31, 2024. The increase in the tangible common equity ratio was due to retained net income and the decrease in accumulated other comprehensive loss, which was the result of an increase in the market value of our available for sale securities portfolio.
    • Income tax expense increased $2.8 million in the first quarter of 2025 compared to the fourth quarter of 2024. This was primarily due to recording an income tax benefit of $1.8 million in the fourth quarter of 2024 for an energy related investment tax credit associated with the construction of the Company’s new headquarters building.

    First Quarter 2025 Compared to First Quarter 2024 Overview

    • Loans increased $36.3 million at March 31, 2025, or 1.2 percent, compared to March 31, 2024. The increase is primarily due to the increase in commercial real estate loans, partially offset by decreases in commercial loans and construction loans.
    • Deposits increased $259.5 million, or 8.5 percent, at March 31, 2025, compared to March 31, 2024. Included in deposits were brokered deposits totaling $335.5 million at March 31, 2025, compared to $396.4 million at March 31, 2024. Excluding brokered deposits, deposits increased $320.4 million, or 12.0 percent, as of March 31, 2025, compared to March 31, 2024. Deposit growth included a mix of public funds and commercial and consumer deposits and was used to reduce wholesale funding, build liquidity and fund loan growth.
    • Borrowed funds decreased to $391.4 million at March 31, 2025, compared to $639.7 million at March 31, 2024. The decrease was primarily attributable to a decrease of $198.5 million in federal funds purchased and other short-term borrowings and a decrease of $45.0 million in Federal Home Loan Bank advances. The decrease in borrowed funds balances was due to the increase in deposits since March 31, 2024. The reduction in the Federal Home Loan Bank advances was due to the maturity of two advances with a total balance of $45.0 million. One of these advances, with a balance of $25.0 million, was hedged with a long-term interest rate swap, which matured and was not renewed.
    • The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 62.04 percent for the first quarter of 2024. The improvement in the efficiency ratio in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to the increase in net interest income, partially offset by an increase in noninterest expense. Occupancy and equipment expense increased primarily due to the occupancy costs associated with the Company’s newly constructed headquarters.
    • Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.88 percent for the first quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $16.8 million for the first quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in deposit rates. The cost of deposits decreased by 42 basis points in the first quarter of 2025 compared to the first quarter of 2024. Also contributing to the improvement was an increase in average deposit balances of $335.2 million, in comparing the same time periods, which resulted in the reduction of higher-cost borrowed funds and an increase in interest-bearing deposits with other financial institutions.

    The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

    The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, April 24, 2025. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until May 8, 2025, by dialing 800-770-2030. The conference ID for the replay call is 7846129, followed by the # key.

    About West Bancorporation, Inc. (Nasdaq: WTBA)

    West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

    Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements.  Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; 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 several bank failures; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the 2024 presidential election; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

    WEST BANCORPORATION, INC. AND SUBSIDIARY
    Financial Information (unaudited)
    (in thousands)
        As of
    CONDENSED BALANCE SHEETS   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Assets                    
    Cash and due from banks   $ 39,253     $ 28,750     $ 34,157     $ 27,994     $ 27,071  
    Interest-bearing deposits     171,357       214,728       123,646       121,825       120,946  
    Securities available for sale, at fair value     546,619       544,565       597,745       588,452       605,735  
    Federal Home Loan Bank stock, at cost     15,216       15,129       17,195       21,065       26,181  
    Loans     3,016,471       3,004,860       3,021,221       2,998,774       2,980,133  
    Allowance for credit losses     (30,526 )     (30,432 )     (29,419 )     (28,422 )     (28,373 )
    Loans, net     2,985,945       2,974,428       2,991,802       2,970,352       2,951,760  
    Premises and equipment, net     110,270       109,985       106,771       101,965       95,880  
    Bank-owned life insurance     45,272       44,990       44,703       44,416       44,138  
    Other assets     72,737       82,416       72,547       89,046       90,981  
    Total assets   $ 3,986,669     $ 4,014,991     $ 3,988,566     $ 3,965,115     $ 3,962,692  
                         
    Liabilities and Stockholders’ Equity                    
    Deposits   $ 3,324,518     $ 3,357,596     $ 3,278,553     $ 3,180,922     $ 3,065,030  
    Federal funds purchased and other short-term borrowings     —       —       —       85,500       198,500  
    Other borrowings     391,445       392,629       438,814       439,998       441,183  
    Other liabilities     32,833       36,891       35,846       34,812       34,223  
    Stockholders’ equity     237,873       227,875       235,353       223,883       223,756  
    Total liabilities and stockholders’ equity   $ 3,986,669     $ 4,014,991     $ 3,988,566     $ 3,965,115     $ 3,962,692  
                         
        For the Quarter Ended
    AVERAGE BALANCES   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Assets   $ 3,944,789     $ 4,135,049     $ 3,973,824     $ 3,964,109     $ 3,812,199  
    Loans     3,016,119       3,007,558       2,991,272       2,994,492       2,949,672  
    Deposits     3,284,394       3,434,234       3,258,669       3,123,282       2,956,635  
    Stockholders’ equity     229,874       230,720       227,513       219,771       219,835  
    WEST BANCORPORATION, INC. AND SUBSIDIARY
    Financial Information (unaudited)
    (in thousands)
        As of
    LOANS   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Commercial   $ 531,267     $ 514,232     $ 512,884     $ 526,589     $ 544,293  
    Real estate:                    
    Construction, land and land development     451,230       508,147       520,516       496,864       465,247  
    1-4 family residential first mortgages     86,292       87,858       89,749       92,230       108,065  
    Home equity     21,961       19,294       17,140       15,264       14,020  
    Commercial     1,909,330       1,861,195       1,870,132       1,856,301       1,839,580  
    Consumer and other     19,323       17,287       14,261       15,234       12,844  
          3,019,403       3,008,013       3,024,682       3,002,482       2,984,049  
    Net unamortized fees and costs     (2,932 )     (3,153 )     (3,461 )     (3,708 )     (3,916 )
    Total loans   $ 3,016,471     $ 3,004,860     $ 3,021,221     $ 2,998,774     $ 2,980,133  
    Less: allowance for credit losses     (30,526 )     (30,432 )     (29,419 )     (28,422 )     (28,373 )
    Net loans   $ 2,985,945     $ 2,974,428     $ 2,991,802     $ 2,970,352     $ 2,951,760  
                         
    CREDIT QUALITY                    
    Pass   $ 3,011,231     $ 2,999,531     $ 3,016,493     $ 2,994,310     $ 2,983,618  
    Watch     7,991       8,349       7,956       7,651       142  
    Substandard     181       133       233       521       289  
    Doubtful     —       —       —       —       —  
    Total loans   $ 3,019,403     $ 3,008,013     $ 3,024,682     $ 3,002,482     $ 2,984,049  
                         
    DEPOSITS                    
    Noninterest-bearing demand   $ 519,771     $ 541,053     $ 525,332     $ 530,441     $ 521,377  
    Interest-bearing demand     517,409       543,855       438,402       443,658       449,946  
    Savings and money market – non-brokered     1,490,189       1,517,510       1,481,840       1,483,264       1,315,698  
    Money market – brokered     143,423       126,381       123,780       97,259       119,840  
    Total nonmaturity deposits     2,670,792       2,728,799       2,569,354       2,554,622       2,406,861  
    Time – non-brokered     461,655       488,760       407,109       353,269       381,646  
    Time – brokered     192,071       140,037       302,090       273,031       276,523  
    Total time deposits     653,726       628,797       709,199       626,300       658,169  
    Total deposits   $ 3,324,518     $ 3,357,596     $ 3,278,553     $ 3,180,922     $ 3,065,030  
                         
    BORROWINGS                    
    Federal funds purchased and other short-term borrowings   $ —     $ —     $ —     $ 85,500     $ 198,500  
    Subordinated notes, net     79,959       79,893       79,828       79,762       79,697  
    Federal Home Loan Bank advances     270,000       270,000       315,000       315,000       315,000  
    Long-term debt     41,486       42,736       43,986       45,236       46,486  
    Total borrowings   $ 391,445     $ 392,629     $ 438,814     $ 525,498     $ 639,683  
                         
    STOCKHOLDERS’ EQUITY                    
    Preferred stock   $ —     $ —     $ —     $ —     $ —  
    Common stock     3,000       3,000       3,000       3,000       3,000  
    Additional paid-in capital     35,072       35,619       34,960       34,322       33,685  
    Retained earnings     282,247       278,613       275,724       273,981       272,997  
    Accumulated other comprehensive loss     (82,446 )     (89,357 )     (78,331 )     (87,420 )     (85,926 )
    Total stockholders’ equity   $ 237,873     $ 227,875     $ 235,353     $ 223,883     $ 223,756  
    WEST BANCORPORATION, INC. AND SUBSIDIARY
    Financial Information (unaudited)
    (in thousands)
        For the Quarter Ended
    CONSOLIDATED STATEMENTS OF INCOME   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Interest income:                    
    Loans, including fees   $ 40,988     $ 41,822     $ 42,504     $ 41,700     $ 40,196  
    Securities:                    
    Taxable     2,788       2,959       3,261       3,394       3,416  
    Tax-exempt     743       795       806       808       810  
    Interest-bearing deposits     1,617       3,740       2,041       1,666       148  
    Total interest income     46,136       49,316       48,612       47,568       44,570  
    Interest expense:                    
    Deposits     21,423       25,706       26,076       23,943       21,559  
    Federal funds purchased and other short-term borrowings     —       —       115       1,950       2,183  
    Subordinated notes     1,105       1,106       1,112       1,105       1,108  
    Federal Home Loan Bank advances     2,235       2,522       2,748       2,718       2,325  
    Long-term debt     518       560       601       622       645  
    Total interest expense     25,281       29,894       30,652       30,338       27,820  
    Net interest income     20,855       19,422       17,960       17,230       16,750  
    Credit loss expense     —       1,000       —       —       —  
    Net interest income after credit loss expense     20,855       18,422       17,960       17,230       16,750  
    Noninterest income:                    
    Service charges on deposit accounts     471       462       459       462       460  
    Debit card usage fees     446       471       500       490       458  
    Trust services     777       1,051       828       794       776  
    Increase in cash value of bank-owned life insurance     282       287       287       278       274  
    Realized securities losses, net     —       (1,172 )     —       —       —  
    Other income     267       331       285       322       331  
    Total noninterest income     2,243       1,430       2,359       2,346       2,299  
    Noninterest expense:                    
    Salaries and employee benefits     7,004       7,107       6,823       7,169       6,489  
    Occupancy and equipment     1,963       2,095       1,926       1,852       1,447  
    Data processing     617       752       771       754       714  
    Technology and software     786       743       722       731       700  
    FDIC insurance     587       699       711       631       519  
    Professional fees     308       301       239       244       257  
    Director fees     206       170       223       236       199  
    Other expenses     1,592       1,532       1,477       1,577       1,543  
    Total noninterest expense     13,063       13,399       12,892       13,194       11,868  
    Income before income taxes     10,035       6,453       7,427       6,382       7,181  
    Income taxes     2,193       (644 )     1,475       1,190       1,372  
    Net income   $ 7,842     $ 7,097     $ 5,952     $ 5,192     $ 5,809  
                         
    Basic earnings per common share   $ 0.47     $ 0.42     $ 0.35     $ 0.31     $ 0.35  
    Diluted earnings per common share   $ 0.46     $ 0.42     $ 0.35     $ 0.31     $ 0.35  
    WEST BANCORPORATION, INC. AND SUBSIDIARY
    Financial Information (unaudited)
                         
        As of and for the Quarter Ended
    COMMON SHARE DATA   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Earnings per common share (basic)   $ 0.47     $ 0.42     $ 0.35     $ 0.31     $ 0.35  
    Earnings per common share (diluted)     0.46       0.42       0.35       0.31       0.35  
    Dividends per common share     0.25       0.25       0.25       0.25       0.25  
    Book value per common share(1)     14.06       13.54       13.98       13.30       13.31  
    Closing stock price     19.94       21.65       19.01       17.90       17.83  
    Market price/book value(2)     141.82 %     159.90 %     135.98 %     134.59 %     133.96 %
    Price earnings ratio(3)     10.46       12.96       13.65       14.36       12.77  
    Annualized dividend yield(4)     5.02 %     4.62 %     5.26 %     5.59 %     5.61 %
                         
    REGULATORY CAPITAL RATIOS                    
    Consolidated:                    
    Total risk-based capital ratio     12.18 %     12.11 %     11.95 %     11.85 %     11.78 %
    Tier 1 risk-based capital ratio     9.59       9.51       9.39       9.30       9.23  
    Tier 1 leverage capital ratio     8.36       7.93       8.15       8.08       8.36  
    Common equity tier 1 ratio     9.02       8.95       8.83       8.74       8.67  
    West Bank:                    
    Total risk-based capital ratio     12.90 %     12.86 %     12.73 %     12.66 %     12.63 %
    Tier 1 risk-based capital ratio     11.99       11.96       11.86       11.79       11.76  
    Tier 1 leverage capital ratio     10.46       9.97       10.29       10.25       10.65  
    Common equity tier 1 ratio     11.99       11.96       11.86       11.79       11.76  
                         
    KEY PERFORMANCE RATIOS AND OTHER METRICS                    
    Return on average assets(5)     0.81 %     0.68 %     0.60 %     0.53 %     0.61 %
    Return on average equity(6)     13.84       12.24       10.41       9.50       10.63  
    Net interest margin(7)(13)     2.28       1.98       1.91       1.86       1.88  
    Yield on interest-earning assets(8)(13)     5.04       5.02       5.16       5.13       4.99  
    Cost of interest-bearing liabilities     3.25       3.57       3.84       3.83       3.70  
    Efficiency ratio(9)(13)     56.37       60.79       63.28       67.14       62.04  
    Nonperforming assets to total assets(10)     0.00       0.00       0.01       0.01       0.01  
    ACL ratio(11)     1.01       1.01       0.97       0.95       0.95  
    Loans/total assets     75.66       74.84       75.75       75.63       75.20  
    Loans/total deposits     90.73       89.49       92.15       94.27       97.23  
    Tangible common equity ratio(12)     5.97       5.68       5.90       5.65       5.65  

    (1) Includes accumulated other comprehensive loss.
    (2) Closing stock price divided by book value per common share.
    (3) Closing stock price divided by annualized earnings per common share (basic).
    (4) Annualized dividend divided by period end closing stock price.
    (5) Annualized net income divided by average assets.
    (6) Annualized net income divided by average stockholders’ equity.
    (7) Annualized tax-equivalent net interest income divided by average interest-earning assets.
    (8) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.
    (9) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.
    (10) Total nonperforming assets divided by total assets.
    (11) Allowance for credit losses on loans divided by total loans.        
    (12) Common equity less intangible assets (none held) divided by tangible assets.
    (13) A non-GAAP measure.

    NON-GAAP FINANCIAL MEASURES

    This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

    (in thousands)   For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:                    
    Net interest income (GAAP)   $ 20,855     $ 19,422     $ 17,960     $ 17,230     $ 16,750  
    Tax-equivalent adjustment (1)     66       16       29       55       82  
    Net interest income on a FTE basis (non-GAAP)     20,921       19,438       17,989       17,285       16,832  
    Average interest-earning assets     3,717,441       3,910,978       3,749,688       3,731,674       3,595,954  
    Net interest margin on a FTE basis (non-GAAP)     2.28 %     1.98 %     1.91 %     1.86 %     1.88 %
                         
    Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:                    
    Net interest income on a FTE basis (non-GAAP)   $ 20,921     $ 19,438     $ 17,989     $ 17,285     $ 16,832  
    Noninterest income     2,243       1,430       2,359       2,346       2,299  
    Adjustment for realized securities losses, net     —       1,172       —       —       —  
    Adjustment for losses on disposal of premises and equipment, net     8       —       26       21       —  
    Adjusted income     23,172       22,040       20,374       19,652       19,131  
    Noninterest expense     13,063       13,399       12,892       13,194       11,868  
    Efficiency ratio on an adjusted and FTE basis (non-GAAP) (2)     56.37 %     60.79 %     63.28 %     67.14 %     62.04 %

    (1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.
    (2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company’s financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.

    For more information contact:
    Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766

    The MIL Network –

    April 25, 2025

  • MIL-OSI: Marquette National Corporation Declares a Dividend of $0.31 per Share

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, April 24, 2025 (GLOBE NEWSWIRE) — Marquette National Corporation (OTCQX: MNAT) today announced that its Board of Directors declared a cash dividend of $0.31 per share. The dividend will be payable on July 1, 2025 to shareholders of record on June 20, 2025. As of March 31, 2025, Marquette had 4,367,449 shares issued and outstanding.

    Marquette National Corporation is a diversified bank holding company with total assets of $2.2 billion. The Company’s banking subsidiary, Marquette Bank, is a full-service, community bank that serves the financial needs of communities in Chicagoland, offering an extensive line of financial solutions, including retail banking, real estate lending, trust, insurance, investments, wealth management and business banking to consumers and commercial customers. Marquette Bank has 20 branches located in: Chicago, Bolingbrook, Bridgeview, Evergreen Park, Hickory Hills, Lemont, New Lenox, Oak Forest, Oak Lawn, Orland Park, Summit and Tinley Park, Illinois. For more information visit: https://emarquettebank.com

    Special Note Concerning Forward-Looking Statements. 
    This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements 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,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. 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.
    A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (ii) effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations and tax regulations; (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (v) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the bank failures in 2023; (vi) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vii) increased competition in the financial services sector, including from non-bank competitors such as credit unions and fintech companies, and the inability to attract new customers; (viii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (ix) unexpected results of acquisitions which may include failure to realize the anticipated benefits of the acquisitions and the possibility that transaction costs may be greater than anticipated; (x) the loss of key executives and employees, talent shortages and employee turnover; (xi) changes in consumer spending; (xii) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xiii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiv) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xvi) the overall health of the local and national real estate market; (xvii) the ability to maintain an adequate level of allowance for credit losses on loans; (xviii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xix) 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; (xx) the level of non-performing assets on our balance sheets; (xxi) interruptions involving our information technology and communications systems or third-party servicers; (xxii) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiii) changes in the interest rates and repayment rates of the Company’s assets; (xxiv) the effectiveness of the Company’s risk management framework, and (xxv) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

    For more information:
    Patrick Hunt
    EVP & CFO
    708-364-9019
    phunt@emarquettebank.com

    This press release was published by a CLEAR® Verified individual.

    The MIL Network –

    April 24, 2025

  • MIL-OSI: Valley National Bancorp Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2025 of $106.1 million, or $0.18 per diluted common share, as compared to the fourth quarter 2024 net income of $115.7 million, or $0.20 per diluted common share, and net income of $96.3 million, or $0.18 per diluted common share, for the first quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $106.1 million, or $0.18 per diluted common share, for the first quarter 2025, $75.7 million, or $0.13 per diluted common share, for the fourth quarter 2024, and $99.4 million, or $0.19 per diluted common share, for the first quarter 2024. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

    Ira Robbins, CEO, commented, “The first quarter was highlighted by the continued improvement in our funding base. Core deposit growth has enabled us to further reduce our reliance on indirect deposits which benefited our revenue and net interest margin. We anticipate that additional core deposit growth will create a sustainable tailwind despite the volatility in the current operating environment.”

    Mr. Robbins continued, “I am generally pleased with the quarter’s results from a credit perspective. The provision for loan losses for the first quarter was at the lowest point in the last four quarters, and we anticipate further improvement throughout the remainder of the year. Non-accrual loans and early stage delinquencies also improved sequentially, and we believe our allowance coverage to total loans is at a comfortable level as of March 31, 2025. We remain on track to achieve our profitability goals for the year as we continue to benefit from the net interest income and credit cost tailwinds that we have discussed previously.”

    Key financial highlights for the first quarter 2025:

    • Net Interest Income and Margin: Our net interest margin on a tax equivalent basis increased by 4 basis points to 2.96 percent in the first quarter 2025 as compared to 2.92 percent for the fourth quarter 2024. Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. The moderate decrease in net interest income from the fourth quarter 2024 was due to the impact of two less days during the first quarter 2025. See additional details in the “Net Interest Income and Margin” section below.
    • Loan Portfolio: Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024 mostly due to normal repayment activity and selective originations within the commercial real estate (CRE) portfolio. As a result, our CRE loan concentration ratio (defined as total commercial real estate loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) declined to approximately 353 percent at March 31, 2025 from 362 percent at December 31, 2024. Partially offsetting the lower CRE loan balances, commercial and industrial (C&I) and automobile loans grew by $218.8 million and $140.2 million, respectively, at March 31, 2025 from December 31, 2024. Auto loan originations resulting from high quality consumer demand remained strong during the first quarter 2025. See the “Loans” section below for more details.
    • Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $594.1 million and $573.3 million at March 31, 2025 and December 31, 2024, respectively, representing 1.22 percent and 1.17 percent of total loans at each respective date. During the first quarter 2025, we recorded a provision for credit losses for loans of $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. See the “Credit Quality” section below for more details.
    • Credit Quality: Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024. Non-accrual loans totaled $346.5 million, or 0.71 percent of total loans, at March 31, 2025 as compared to $359.5 million, or 0.74 percent of total loans, at December 31, 2024. Net loan charge-offs totaled $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and first quarter 2024, respectively. See the “Credit Quality” section below for more details.
    • Deposits: Non-interest bearing deposits increased $199.9 million to $11.6 billion at March 31, 2025 from December 31, 2024 largely due to higher inflows of commercial customer deposits during the first quarter 2025. Savings, NOW, and money market deposits increased $108.6 million to $26.4 billion at March 31, 2025 from December 31, 2024 mostly due to new deposits from our online savings deposit product offerings. Total actual deposit balances decreased $110.0 million to $50.0 billion at March 31, 2025 as compared to $50.1 billion at December 31, 2024 as the increases in our direct customer deposits were offset by a $726.5 million decrease in indirect customer deposits (consisting largely of brokered CDs) during the first quarter 2025. See the “Deposits” section below for more details.
    • Non-Interest Income: Non-interest income increased $7.1 million to $58.3 million for the first quarter 2025 as compared to the fourth quarter 2024. The increase reflected net gains on sales of loans of $2.2 million for the first quarter 2025 as compared to net losses of $4.7 million for the fourth quarter 2024, which included $7.9 million of losses related to the sale of performing CRE loans.
    • Non-Interest Expense: Non-interest expense decreased $2.0 million to $276.6 million for the first quarter 2025 as compared to the fourth quarter 2024 largely due to decreases of $6.1 million in professional and legal expenses; and $5.6 million in technology, furniture and equipment expense, partially offset by higher amortization of tax credit investments and the normal seasonal increases in salary and employee benefits expense related to payroll taxes during the first quarter 2025. The decreases in professional and technology-related expenses were mostly due to elevated fourth quarter 2024 expenses resulting from transformation and enhancement efforts in our bank operations.
    • Income Tax Expense: Income tax expense was $33.1 million for the first quarter 2025 as compared to an income tax benefit of $26.7 million for the fourth quarter 2024, which reflected a $46.4 million total reduction in uncertain tax liability positions and related accrued interest due to statute of limitation expirations. Our effective tax rate was 23.8 percent for the first quarter 2025 compared to a negative 29.9 percent for the fourth quarter 2024.
    • Efficiency Ratio: Our efficiency ratio was 55.87 percent for the first quarter 2025 as compared to 57.21 percent and 59.10 percent for the fourth quarter 2024 and first quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
    • Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.69 percent, 5.69 percent and 7.76 percent for the first quarter 2025, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

    Net Interest Income and Margin

    Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. Interest income on a tax equivalent basis decreased $50.1 million to $786.0 million for the first quarter 2025 as compared to the fourth quarter 2024. The decrease was mostly driven by the impact of (i) two less days in the first quarter 2025, (ii) the bulk sale of certain performing CRE loans during the fourth quarter 2024, and (iii) downward repricing on adjustable rate loans. Total interest expense decreased $47.2 million to $364.6 million for the first quarter 2025 as compared to the fourth quarter 2024 mainly due to (i) the aforementioned reduction in day count, (ii) a $2.0 billion decrease in average time deposit balances (primarily related to the maturity and repayment of higher cost indirect customer CDs), and (iii) lower interest rates on many interest bearing deposit products in the first quarter 2025. See the “Deposits” and “Other Borrowings” sections below for more details.

    Net interest margin on a tax equivalent basis of 2.96 percent for the first quarter 2025 increased by 4 basis points from 2.92 percent for the fourth quarter 2024 and increased 17 basis points from 2.79 percent for the first quarter 2024. The increase as compared to the fourth quarter 2024 was mostly due to the 29 basis point decline in our cost of total average deposits, largely offset by the lower yield on average interest earning assets. The yield on average interest earning assets decreased by 22 basis points to 5.53 percent on a linked quarter basis largely due to downward repricing of our adjustable rate loans and two less days in the first quarter 2025, partially offset by higher yielding investment purchases. The overall cost of average interest bearing liabilities decreased 31 basis points to 3.54 percent for the first quarter 2025 as compared to the fourth quarter 2024 largely due to a decrease in higher cost time deposits and lower interest rates on most deposit products. Our cost of total average deposits was 2.65 percent for the first quarter 2025 as compared to 2.94 percent and 3.16 percent for the fourth quarter 2024 and the first quarter 2024, respectively.

    Loans, Deposits and Other Borrowings

    Loans. Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024. Total CRE (including construction) loans decreased $530.4 million to $29.1 billion at March 31, 2025 from December 31, 2024. The decrease was largely driven by repayment activity and continued selective origination activity within the CRE portfolio. Additionally, construction loans decreased $87.8 million to $3.0 billion at March 31, 2025 from December 31, 2024 mainly due to the migration of completed projects to permanent financing within the multifamily loan category during the first quarter 2025 and a non-performing loan totaling $10.2 million, net of $638 thousand of charge-offs, transferred to loans held for sale at March 31, 2025, partially offset by new advances. As a result of the completed construction projects, multifamily loans increased $121.1 million to $8.4 billion at March 31, 2025 from December 31, 2024. C&I loans grew by $218.8 million, or 8.8 percent on an annualized basis, to $10.2 billion at March 31, 2025 from December 31, 2024 largely due to our continued strategic focus on growth within this category. Automobile loans increased by $140.2 million, or 29.5 percent on an annualized basis, to $2.0 billion at March 31, 2025 from December 31, 2024 mainly due to high quality consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio.

    Deposits. Actual ending balances for deposits decreased $110.0 million to $50.0 billion at March 31, 2025 from December 31, 2024 mainly due to a $418.5 million decrease in time deposits, partially offset by increases of $199.9 million and $108.6 million in non-interest bearing deposits and savings, NOW and money market deposits, respectively. The decrease in time deposit balances was mainly driven by a decline of approximately $661 million in indirect (i.e., brokered) customer CDs, partially offset by deposit inflows from new retail CD offerings during the first quarter 2025. The increase in non-interest bearing was mostly due to higher commercial customer deposit inflows late in the first quarter 2025. Savings, NOW and money market deposit balances increased at March 31, 2025 from December 31, 2024 largely due to new deposits from our online savings deposit product offerings, partially offset by lower governmental deposits account balances. Total indirect customer deposits (including both brokered money market and time deposits) totaled $6.3 billion and $7.0 billion in March 31, 2025 and December 31, 2024, respectively. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 23 percent, 53 percent and 24 percent of total deposits as of March 31, 2025, respectively, as compared to 23 percent, 52 percent and 25 percent of total deposits as of December 31, 2024, respectively.

    Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $13.7 million to $59.0 million at March 31, 2025 from December 31, 2024. Long-term borrowings totaled $2.9 billion at March 31, 2025 and decreased $269.6 million as compared to December 31, 2024 due to the maturity and repayment of certain FHLB advances.

    Credit Quality

    Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $17.1 million to $356.2 million at March 31, 2025 as compared to December 31, 2024. Non-accrual loans decreased $13.0 million to $346.5 million at March 31, 2025 as compared to $359.5 million at December 31, 2024 largely driven by partial charge-offs of two non-performing C&I loan relationships during the first quarter 2025, partially offset by a moderate increase in non-performing CRE loans at March 31, 2025. Non-accrual loans represented 0.71 percent of total loans at March 31, 2025 as compared to 0.74 percent of total loans at December 31, 2024. OREO decreased $4.4 million to $7.7 million at March 31, 2025 from December 31, 2024 mostly due to the sale of one CRE property, which resulted in a $2.9 million loss for the first quarter 2025.

    Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024.

    Loans 30 to 59 days past due decreased $23.7 million to $33.4 million at March 31, 2025 as compared to December 31, 2024 largely due to a previously reported delinquent CRE loan totaling $15.4 million that was current to its contractual payments at March 31, 2025, as well as a general improvement in residential mortgage loan delinquencies in this category. Loans 60 to 89 days past due decreased $25.6 million to $10.5 million at March 31, 2025 as compared to December 31, 2024 mostly due to the renewal of an $18.6 million matured performing CRE loan reported in this delinquency category at December 31, 2024 and two CRE loans totaling $6.9 million that were reclassified to the non-accrual category during the first quarter 2025. Loans 90 days or more past due and still accruing interest increased $1.9 million to $7.8 million at March 31, 2025 as compared to December 31, 2024 mainly due to an increase in residential mortgage loans delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

    Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at March 31, 2025, December 31, 2024 and March 31, 2024:

      March 31, 2025   December 31, 2024   March 31, 2024
          Allocation       Allocation       Allocation
          as a % of       as a % of       as a % of
      Allowance   Loan   Allowance   Loan   Allowance   Loan
      Allocation   Category   Allocation   Category   Allocation   Category
      ($ in thousands)
    Loan Category:                      
    Commercial and industrial loans $ 184,700   1.82 %   $ 173,002   1.74 %   $ 138,593   1.52 %
    Commercial real estate loans:                      
    Commercial real estate   266,938   1.02       251,351   0.95       209,355   0.74  
    Construction   54,724   1.81       52,797   1.70       56,492   1.59  
    Total commercial real estate loans   321,662   1.10       304,148   1.03       265,847   0.84  
    Residential mortgage loans   48,906   0.87       58,895   1.05       44,377   0.79  
    Consumer loans:                      
    Home equity   3,401   0.56       3,379   0.56       2,809   0.50  
    Auto and other consumer   19,531   0.62       19,426   0.65       17,622   0.60  
    Total consumer loans   22,932   0.61       22,805   0.64       20,431   0.58  
    Allowance for loan losses   578,200   1.19       558,850   1.15       469,248   0.94  
    Allowance for unfunded credit commitments   15,854         14,478         18,021    
    Total allowance for credit losses for loans $ 594,054       $ 573,328       $ 487,269    
    Allowance for credit losses for loans as a % total of loans     1.22 %       1.17 %       0.98 %
                                 

    Our loan portfolio, totaling $48.7 billion at March 31, 2025, had net loan charge-offs totaling $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and the first quarter 2024, respectively. Gross loan charge-offs totaled $44.0 million for the first quarter 2025 and included $24.1 million of partial and full charge-offs related to two non-performing C&I loan relationships with combined specific reserves of $16.0 million at December 31, 2024.

    The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.22 percent at March 31, 2025, 1.17 percent at December 31, 2024, and 0.98 percent at March 31, 2024. For the first quarter 2025, the provision for credit losses for loans totaled $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. The first quarter 2025 provision reflects, among other factors, the impact of loan charge-offs, increased quantitative reserves and continued growth in the C&I loan portfolio, partially offset by a decrease in specific reserves associated with collateral dependent loans at March 31, 2025.

    Capital Adequacy

    Valley’s total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital ratios were 13.91 percent, 11.53 percent, 10.80 percent and 9.41 percent, respectively, at March 31, 2025 as compared to 13.87 percent, 11.55 percent, 10.82 percent and 9.16 percent, respectively, at December 31, 2024.

    Investor Conference Call

    Valley’s CEO, Ira Robbins, will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss Valley’s first quarter 2025 earnings. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, May 26, 2025. Investor presentation materials will be made available prior to the conference call at valley.com.

    About Valley

    As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to valley.com or call our Customer Care Center at 800-522-4100.

    Forward-Looking Statements

    The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

    • the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
    • the impact of unfavorable macroeconomic conditions or downturns, including instability or volatility in financial markets resulting from the impact of tariffs, any retaliatory actions, related market uncertainty, or other factors; debt default or rating downgrade; unanticipated loan delinquencies; loss of collateral; decreased service revenues; increased business disruptions or failures; reductions in employment; and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as legislation and policy changes under the new U.S. presidential administration, geopolitical instabilities or events, natural and other disasters, including severe weather events, health emergencies, acts of terrorism, or other external events;
    • the impact of any potential instability within the U.S. financial sector or future bank failures, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
    • the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
    • changes in the statutes, regulations, policies, or enforcement priorities of the federal bank regulatory agencies;
    • the loss of or decrease in lower-cost funding sources within our deposit base;
    • damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;
    • a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
    • higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
    • the inability to grow customer deposits to keep pace with the level of loan growth;
    • a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
    • the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
    • changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
    • greater than expected technology-related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
    • increased competitive challenges, including our ability to stay current with rapid technological changes in the financial services industry;
    • cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks, and the increasing sophistication of such attacks;
    • results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
    • application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
    • our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
    • unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;
    • our ability to successfully execute our business plan and strategic initiatives; and
    • unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.

    A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024.

    We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    -Tables to Follow-

    VALLEY NATIONAL BANCORP
    CONSOLIDATED FINANCIAL HIGHLIGHTS
     
    SELECTED FINANCIAL DATA
     
      Three Months Ended
      March 31,   December 31,   March 31,
    ($ in thousands, except for share data and stock price) 2025   2024   2024
    FINANCIAL DATA:          
    Net interest income – FTE (1) $ 421,378     $ 424,277     $ 394,847  
    Net interest income $ 420,105     $ 422,977     $ 393,548  
    Non-interest income   58,294       51,202       61,415  
    Total revenue   478,399       474,179       454,963  
    Non-interest expense   276,618       278,582       280,310  
    Pre-provision net revenue   201,781       195,597       174,653  
    Provision for credit losses   62,661       106,536       45,200  
    Income tax expense (benefit)   33,062       (26,650 )     33,173  
    Net income   106,058       115,711       96,280  
    Dividends on preferred stock   6,955       7,025       4,119  
    Net income available to common shareholders $ 99,103     $ 108,686     $ 92,161  
    Weighted average number of common shares outstanding:          
    Basic   559,613,272       536,159,463       508,340,719  
    Diluted   563,305,525       540,087,600       510,633,945  
    Per common share data:          
    Basic earnings $ 0.18     $ 0.20     $ 0.18  
    Diluted earnings   0.18       0.20       0.18  
    Cash dividends declared   0.11       0.11       0.11  
    Closing stock price – high   10.42       10.78       10.80  
    Closing stock price – low   8.56       8.70       7.43  
    FINANCIAL RATIOS:          
    Net interest margin   2.95 %     2.91 %     2.78 %
    Net interest margin – FTE (1)   2.96       2.92       2.79  
    Annualized return on average assets   0.69       0.74       0.63  
    Annualized return on avg. shareholders’ equity   5.69       6.38       5.73  
    NON-GAAP FINANCIAL DATA AND RATIOS: (2)          
    Basic earnings per share, as adjusted $ 0.18     $ 0.13     $ 0.19  
    Diluted earnings per share, as adjusted   0.18       0.13       0.19  
    Annualized return on average assets, as adjusted   0.69 %     0.48 %     0.65 %
    Annualized return on average shareholders’ equity, as adjusted   5.69       4.17       5.91  
    Annualized return on avg. tangible shareholders’ equity   7.76       8.81       8.19  
    Annualized return on average tangible shareholders’ equity, as adjusted   7.76       5.76       8.46  
    Efficiency ratio   55.87       57.21       59.10  
               
    AVERAGE BALANCE SHEET ITEMS:          
    Assets $ 61,502,768     $ 62,865,338     $ 61,256,868  
    Interest earning assets   56,891,691       58,214,783       56,618,797  
    Loans   48,654,921       49,730,130       50,246,591  
    Interest bearing liabilities   41,230,709       42,765,949       41,556,588  
    Deposits   49,139,303       50,726,080       48,575,974  
    Shareholders’ equity   7,458,177       7,255,159       6,725,695  
                           
      As Of
    BALANCE SHEET ITEMS: March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands) 2025   2024   2024   2024   2024
    Assets $ 61,865,655     $ 62,491,691     $ 62,092,332     $ 62,058,974     $ 61,000,188  
    Total loans   48,657,128       48,799,711       49,355,319       50,311,702       49,922,042  
    Deposits   49,965,844       50,075,857       50,395,966       50,112,177       49,077,946  
    Shareholders’ equity   7,499,897       7,435,127       6,972,380       6,737,737       6,727,139  
                       
    LOANS:                  
    (In thousands)                  
    Commercial and industrial $ 10,150,205     $ 9,931,400     $ 9,799,287     $ 9,479,147     $ 9,104,193  
    Commercial real estate:                  
    Non-owner occupied   11,945,222       12,344,355       12,647,649       13,710,015       14,962,851  
    Multifamily   8,420,385       8,299,250       8,612,936       8,976,264       8,818,263  
    Owner occupied   5,722,014       5,886,620       5,654,147       5,536,844       4,367,839  
    Construction   3,026,935       3,114,733       3,487,464       3,545,723       3,556,511  
    Total commercial real estate   29,114,556       29,644,958       30,402,196       31,768,846       31,705,464  
    Residential mortgage   5,636,407       5,632,516       5,684,079       5,627,113       5,618,355  
    Consumer:                  
    Home equity   602,161       604,433       581,181       566,467       564,083  
    Automobile   2,041,227       1,901,065       1,823,738       1,762,852       1,700,508  
    Other consumer   1,112,572       1,085,339       1,064,838       1,107,277       1,229,439  
    Total consumer loans   3,755,960       3,590,837       3,469,757       3,436,596       3,494,030  
    Total loans $ 48,657,128     $ 48,799,711     $ 49,355,319     $ 50,311,702     $ 49,922,042  
                       
    CAPITAL RATIOS:                  
    Book value per common share $ 12.76     $ 12.67     $ 13.00     $ 12.82     $ 12.81  
    Tangible book value per common share (2)   9.21       9.10       9.06       8.87       8.84  
    Tangible common equity to tangible assets (2)   8.61 %     8.40 %     7.68 %     7.52 %     7.62 %
    Tier 1 leverage capital   9.41       9.16       8.40       8.19       8.20  
    Common equity tier 1 capital   10.80       10.82       9.57       9.55       9.34  
    Tier 1 risk-based capital   11.53       11.55       10.29       9.98       9.78  
    Total risk-based capital   13.91       13.87       12.56       12.17       11.88  
                                           
      Three Months Ended
    ALLOWANCE FOR CREDIT LOSSES: March 31,   December 31,   March 31,
    ($ in thousands) 2025   2024   2024
    Allowance for credit losses for loans          
    Beginning balance – Allowance for credit losses for loans $ 573,328     $ 564,671     $ 465,550  
    Loans charged-off:          
    Commercial and industrial   (28,456 )     (31,784 )     (14,293 )
    Commercial real estate   (12,260 )     (69,218 )     (1,204 )
    Construction   (1,163 )     —       (7,594 )
    Residential mortgage   —       (29 )     —  
    Total consumer   (2,140 )     (2,621 )     (1,809 )
    Total loans charged-off   (44,019 )     (103,652 )     (24,900 )
    Charged-off loans recovered:          
    Commercial and industrial   810       1,452       682  
    Commercial real estate   249       3,138       241  
    Residential mortgage   168       81       25  
    Total consumer   843       673       397  
    Total loans recovered   2,070       5,344       1,345  
    Total net charge-offs   (41,949 )     (98,308 )     (23,555 )
    Provision for credit losses for loans   62,675       106,965       45,274  
    Ending balance $ 594,054     $ 573,328     $ 487,269  
    Components of allowance for credit losses for loans:          
    Allowance for loan losses $ 578,200     $ 558,850     $ 469,248  
    Allowance for unfunded credit commitments   15,854       14,478       18,021  
    Allowance for credit losses for loans $ 594,054     $ 573,328     $ 487,269  
    Components of provision for credit losses for loans:          
    Provision for credit losses for loans $ 61,299     $ 108,831     $ 46,723  
    Provision (credit) for unfunded credit commitments   1,376       (1,866 )     (1,449 )
    Total provision for credit losses for loans $ 62,675     $ 106,965     $ 45,274  
    Annualized ratio of total net charge-offs to total average loans   0.34 %     0.79 %     0.19 %
    Allowance for credit losses for loans as a % of total loans   1.22 %     1.17 %     0.98 %
                           
      As Of
    ASSET QUALITY: March 31,   December 31,   September 30,   June 30,   March 31,
    ($ in thousands) 2025   2024   2024   2024   2024
    Accruing past due loans:                  
    30 to 59 days past due:                  
    Commercial and industrial $ 3,609     $ 2,389     $ 4,537     $ 5,086     $ 6,202  
    Commercial real estate   170       20,902       76,370       1,879       5,791  
    Residential mortgage   16,747       21,295       19,549       17,389       20,819  
    Total consumer   12,887       12,552       14,672       21,639       14,032  
    Total 30 to 59 days past due   33,413       57,138       115,128       45,993       46,844  
    60 to 89 days past due:                  
    Commercial and industrial   420       1,007       1,238       1,621       2,665  
    Commercial real estate   —       24,903       43,926       —       3,720  
    Residential mortgage   7,700       5,773       6,892       6,632       5,970  
    Total consumer   2,408       4,484       2,732       3,671       1,834  
    Total 60 to 89 days past due   10,528       36,167       54,788       11,924       14,189  
    90 or more days past due:                  
    Commercial and industrial   —       1,307       1,786       2,739       5,750  
    Commercial real estate   —       —       —       4,242       —  
    Construction   —       —       —       3,990       3,990  
    Residential mortgage   6,892       3,533       1,931       2,609       2,884  
    Total consumer   864       1,049       1,063       898       731  
    Total 90 or more days past due   7,756       5,889       4,780       14,478       13,355  
    Total accruing past due loans $ 51,697     $ 99,194     $ 174,696     $ 72,395     $ 74,388  
    Non-accrual loans:                  
    Commercial and industrial $ 110,146     $ 136,675     $ 120,575     $ 102,942     $ 102,399  
    Commercial real estate   172,011       157,231       113,752       123,011       100,052  
    Construction   24,275       24,591       24,657       45,380       51,842  
    Residential mortgage   35,393       36,786       33,075       28,322       28,561  
    Total consumer   4,626       4,215       4,260       3,624       4,438  
    Total non-accrual loans   346,451       359,498       296,319       303,279       287,292  
    Other real estate owned (OREO)   7,714       12,150       7,172       8,059       88  
    Other repossessed assets   2,054       1,681       1,611       1,607       1,393  
    Total non-performing assets $ 356,219     $ 373,329     $ 305,102     $ 312,945     $ 288,773  
    Total non-accrual loans as a % of loans   0.71 %     0.74 %     0.60 %     0.60 %     0.58 %
    Total accruing past due and non-accrual loans as a % of loans   0.82       0.94 %     0.95 %     0.75 %     0.72 %
    Allowance for losses on loans as a % of non-accrual loans   166.89       155.45 %     185.05 %     171.23 %     163.33 %
                                           

    NOTES TO SELECTED FINANCIAL DATA

    (1)   Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
    (2)   Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.
         
    Non-GAAP Reconciliations to GAAP Financial Measures
     
      Three Months Ended
      March 31,   December 31,   March 31,
    ($ in thousands, except for share data) 2025
    		   2024
    		   2024
    Adjusted net income available to common shareholders (non-GAAP):          
    Net income, as reported (GAAP) $ 106,058     $ 115,711     $ 96,280  
    Add: FDIC special assessment (a)   —       —       7,394  
    Add: Losses on available for sale and held to maturity debt securities, net (b)   11       3       7  
    Add: Restructuring charge(c)   —       1,085       620  
    Add: Net losses on the sale of commercial real estate loans (d)   —       7,866       —  
    Less: Gain on sale of commercial premium finance lending division (e)   —       —       (3,629 )
    Less: Income tax benefit (f)   —       (46,431 )     —  
    Total non-GAAP adjustments to net income   11       (37,477 )     4,392  
    Income tax adjustments related to non-GAAP adjustments (g)   (3 )     (2,520 )     (1,224 )
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Dividends on preferred stock   6,955       7,025       4,119  
    Net income available to common shareholders, as adjusted (non-GAAP) $ 99,111     $ 68,689     $ 95,329  
               
    (a) Included in the FDIC insurance assessment.
    (b) Included in gains on securities transactions, net.
    (c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
    (d) Represents actual and mark to market losses on commercial real estate loan sales included in gains (losses) on sales of loans, net.
    (e) Included in gains (losses) on sales of assets, net within non-interest income.
    (f)  Represents the income tax benefit from the reduction in uncertain tax liability positions and accrued interest due to statute of limitation expirations included in income tax expense (benefit).
    (g) Calculated using the appropriate blended statutory tax rate for the applicable period.
     
    Adjusted per common share data (non-GAAP):          
    Net income available to common shareholders, as adjusted (non-GAAP) $ 99,111     $ 68,689     $ 95,329  
    Average number of shares outstanding   559,613,272       536,159,463       508,340,719  
    Basic earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.19  
    Average number of diluted shares outstanding   563,305,525       540,087,600       510,633,945  
    Diluted earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.19  
    Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):          
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Average shareholders’ equity $ 7,458,177     $ 7,255,159     $ 6,725,695  
    Less: Average goodwill and other intangible assets   1,994,061       2,000,574       2,024,999  
    Average tangible shareholders’ equity $ 5,464,116     $ 5,254,585     $ 4,700,696  
    Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)   7.76 %     5.76 %     8.46 %
    Adjusted annualized return on average assets (non-GAAP):          
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Average assets $ 61,502,768     $ 62,865,338     $ 61,256,868  
    Annualized return on average assets, as adjusted (non-GAAP)   0.69 %     0.48 %     0.65 %
                           
    Non-GAAP Reconciliations to GAAP Financial Measures (Continued)
     
      Three Months Ended
      March 31,   December 31,   March 31,
    ($ in thousands, except for share data) 2025   2024   2024
    Adjusted annualized return on average shareholders’ equity (non-GAAP):          
    Net income, as adjusted (non-GAAP) $ 106,066     $ 75,714     $ 99,448  
    Average shareholders’ equity $ 7,458,177     $ 7,255,159     $ 6,725,695  
    Annualized return on average shareholders’ equity, as adjusted (non-GAAP)   5.69 %     4.17 %     5.91 %
    Annualized return on average tangible shareholders’ equity (non-GAAP):          
    Net income, as reported (GAAP) $ 106,058     $ 115,711     $ 96,280  
    Average shareholders’ equity $ 7,458,177     $ 7,255,159     $ 6,725,695  
    Less: Average goodwill and other intangible assets   1,994,061       2,000,574       2,024,999  
    Average tangible shareholders’ equity $ 5,464,116     $ 5,254,585     $ 4,700,696  
    Annualized return on average tangible shareholders’ equity (non-GAAP)   7.76 %     8.81 %     8.19 %
               
    Efficiency ratio (non-GAAP):          
    Non-interest expense, as reported (GAAP) $ 276,618     $ 278,582     $ 280,310  
    Less: FDIC special assessment (pre-tax)   —       —       7,394  
    Less: Restructuring charge (pre-tax)   —       1,085       620  
    Less: Amortization of tax credit investments (pre-tax)   9,320       1,740       5,562  
    Non-interest expense, as adjusted (non-GAAP) $ 267,298     $ 275,757     $ 266,734  
    Net interest income, as reported (GAAP)   420,105       422,977       393,548  
    Non-interest income, as reported (GAAP)   58,294       51,202       61,415  
    Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)   11       3       7  
    Add: Net losses on the sale of commercial real estate loans (pre-tax)   —       7,866       —  
    Less: Gain on sale of premium finance division (pre-tax)   —       —       (3,629 )
    Non-interest income, as adjusted (non-GAAP) $ 58,305     $ 59,071     $ 57,793  
    Gross operating income, as adjusted (non-GAAP) $ 478,410     $ 482,048     $ 451,341  
    Efficiency ratio (non-GAAP)   55.87 %     57.21 %     59.10 %
      As of
      March 31,   December 31,   September 30,   June 30,   March 31,
    ($ in thousands, except for share data) 2025   2024   2024   2024   2024
    Tangible book value per common share (non-GAAP):                  
    Common shares outstanding   560,028,101       558,786,093       509,252,936       509,205,014       508,893,059  
    Shareholders’ equity (GAAP) $ 7,499,897     $ 7,435,127     $ 6,972,380     $ 6,737,737     $ 6,727,139  
    Less: Preferred stock   354,345       354,345       354,345       209,691       209,691  
    Less: Goodwill and other intangible assets   1,990,276       1,997,597       2,004,414       2,012,580       2,020,405  
    Tangible common shareholders’ equity (non-GAAP) $ 5,155,276     $ 5,083,185     $ 4,613,621     $ 4,515,466     $ 4,497,043  
    Tangible book value per common share (non-GAAP) $ 9.21     $ 9.10     $ 9.06     $ 8.87     $ 8.84  
    Tangible common equity to tangible assets (non-GAAP):                  
    Tangible common shareholders’ equity (non-GAAP) $ 5,155,276     $ 5,083,185     $ 4,613,621     $ 4,515,466     $ 4,497,043  
    Total assets (GAAP)   61,865,655       62,491,691       62,092,332       62,058,974       61,000,188  
    Less: Goodwill and other intangible assets   1,990,276       1,997,597       2,004,414       2,012,580       2,020,405  
    Tangible assets (non-GAAP) $ 59,875,379     $ 60,494,094     $ 60,087,918     $ 60,046,394     $ 58,979,783  
    Tangible common equity to tangible assets (non-GAAP)   8.61 %     8.40 %     7.68 %     7.52 %     7.62 %
                                           

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (in thousands, except for share data)

           
      March 31,   December 31,
      2025   2024
      (Unaudited)    
    Assets      
    Cash and due from banks $ 508,887     $ 411,412  
    Interest bearing deposits with banks   714,810       1,478,713  
    Investment securities:      
    Equity securities   74,425       71,513  
    Available for sale debt securities   3,658,704       3,369,724  
    Held to maturity debt securities (net of allowance for credit losses of $633 at March 31, 2025 and $647 at December 31, 2024)   3,545,328       3,531,573  
    Total investment securities   7,278,457       6,972,810  
    Loans held for sale (includes fair value of $8,427 at March 31, 2025 and $16,931 at December 31, 2024 for loans originated for sale)   27,377       25,681  
    Loans   48,657,128       48,799,711  
    Less: Allowance for loan losses   (578,200 )     (558,850 )
    Net loans   48,078,928       48,240,861  
    Premises and equipment, net   344,123       350,796  
    Lease right of use assets   334,013       328,475  
    Bank owned life insurance   733,135       731,574  
    Accrued interest receivable   238,326       239,941  
    Goodwill   1,868,936       1,868,936  
    Other intangible assets, net   121,340       128,661  
    Other assets   1,617,323       1,713,831  
    Total Assets $ 61,865,655     $ 62,491,691  
    Liabilities      
    Deposits:      
    Non-interest bearing $ 11,628,578     $ 11,428,674  
    Interest bearing:      
    Savings, NOW and money market   26,413,258       26,304,639  
    Time   11,924,008       12,342,544  
    Total deposits   49,965,844       50,075,857  
    Short-term borrowings   59,026       72,718  
    Long-term borrowings   2,904,567       3,174,155  
    Junior subordinated debentures issued to capital trusts   57,542       57,455  
    Lease liabilities   394,334       388,303  
    Accrued expenses and other liabilities   984,445       1,288,076  
    Total Liabilities   54,365,758       55,056,564  
    Shareholders’ Equity      
    Preferred stock, no par value; 50,000,000 authorized shares:      
    Series A (4,600,000 shares issued at March 31, 2025 and December 31, 2024)   111,590       111,590  
    Series B (4,000,000 shares issued at March 31, 2025 and December 31, 2024)   98,101       98,101  
    Series C (6,000,000 shares issued at March 31, 2025 and December 31, 2024)   144,654       144,654  
    Common stock (no par value, authorized 650,000,000 shares; issued 560,278,101 shares at March 31, 2025 and 558,786,093 shares at December 31, 2024)   196,520       195,998  
    Surplus   5,444,756       5,442,070  
    Retained earnings   1,634,690       1,598,048  
    Accumulated other comprehensive loss   (128,252 )     (155,334 )
    Treasury stock, at cost (250,000 common shares at March 31, 2025)   (2,162 )     —  
    Total Shareholders’ Equity   7,499,897       7,435,127  
    Total Liabilities and Shareholders’ Equity $ 61,865,655     $ 62,491,691  
                   

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (in thousands, except for share data)

      Three Months Ended
      March 31,   December 31,   March 31,
      2025   2024   2024
    Interest Income          
    Interest and fees on loans $ 703,609     $ 750,667     $ 771,553  
    Interest and dividends on investment securities:          
    Taxable   63,898       55,983       35,797  
    Tax-exempt   4,702       4,803       4,796  
    Dividends   5,664       5,860       6,828  
    Interest on federal funds sold and other short-term investments   6,879       17,513       9,682  
    Total interest income   784,752       834,826       828,656  
    Interest Expense          
    Interest on deposits:          
    Savings, NOW and money market   200,221       214,489       232,506  
    Time   125,069       158,716       151,065  
    Interest on short-term borrowings   2,946       293       20,612  
    Interest on long-term borrowings and junior subordinated debentures   36,411       38,351       30,925  
    Total interest expense   364,647       411,849       435,108  
    Net Interest Income   420,105       422,977       393,548  
    (Credit) provision for credit losses for available for sale and held to maturity securities   (14 )     (429 )     (74 )
    Provision for credit losses for loans   62,675       106,965       45,274  
    Net Interest Income After Provision for Credit Losses   357,444       316,441       348,348  
    Non-Interest Income          
    Wealth management and trust fees   15,031       16,425       17,930  
    Insurance commissions   3,402       3,705       2,251  
    Capital markets   6,940       7,425       5,670  
    Service charges on deposit accounts   12,726       12,989       11,249  
    Gains on securities transactions, net   46       1       49  
    Fees from loan servicing   3,215       3,071       3,188  
    Gains (losses) on sales of loans, net   2,197       (4,698 )     1,618  
    Gains (losses) on sales of assets, net   43       (20 )     3,694  
    Bank owned life insurance   4,777       3,775       3,235  
    Other   9,917       8,529       12,531  
    Total non-interest income   58,294       51,202       61,415  
    Non-Interest Expense          
    Salary and employee benefits expense   142,618       137,117       141,831  
    Net occupancy expense   25,888       26,576       24,323  
    Technology, furniture and equipment expense   29,896       35,482       35,462  
    FDIC insurance assessment   12,867       14,002       18,236  
    Amortization of other intangible assets   8,019       8,373       9,412  
    Professional and legal fees   15,670       21,794       16,465  
    Amortization of tax credit investments   9,320       1,740       5,562  
    Other   32,340       33,498       29,019  
    Total non-interest expense   276,618       278,582       280,310  
    Income Before Income Taxes   139,120       89,061       129,453  
    Income tax expense (benefit)   33,062       (26,650 )     33,173  
    Net Income   106,058       115,711       96,280  
    Dividends on preferred stock   6,955       7,025       4,119  
    Net Income Available to Common Shareholders $ 99,103     $ 108,686     $ 92,161  
                           

    VALLEY NATIONAL BANCORP
    Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and
    Net Interest Income on a Tax Equivalent Basis

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
      Average       Avg.   Average       Avg.   Average       Avg.
    ($ in thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
    Assets                                  
    Interest earning assets:                              
    Loans (1)(2) $ 48,654,921   $ 703,632     5.78 %   $ 49,730,130   $ 750,690     6.04 %   $ 50,246,591   $ 771,577     6.14 %
    Taxable investments (3)   7,100,958     69,562     3.92       6,504,106     61,843     3.80       5,094,978     42,625     3.35  
    Tax-exempt investments (1)(3)   552,291     5,952     4.31       565,877     6,080     4.30       579,842     6,071     4.19  
    Interest bearing deposits with banks   583,521     6,879     4.72       1,414,670     17,513     4.95       697,386     9,682     5.55  
    Total interest earning assets   56,891,691     786,025     5.53       58,214,783     836,126     5.75       56,618,797     829,955     5.86  
    Other assets   4,611,077             4,650,555             4,638,071        
    Total assets $ 61,502,768           $ 62,865,338           $ 61,256,868        
    Liabilities and shareholders’ equity                                  
    Interest bearing liabilities:                                  
    Savings, NOW and money market deposits $ 26,345,983   $ 200,221     3.04     $ 25,928,201   $ 214,489     3.31 %   $ 24,793,452   $ 232,506     3.75 %
    Time deposits   11,570,758     125,069     4.32       13,530,980     158,716     4.69       12,599,395     151,065     4.80  
    Short-term borrowings   307,637     2,946     3.83       72,504     293     1.62       1,537,879     20,612     5.36  
    Long-term borrowings (4)   3,006,331     36,411     4.84       3,234,264     38,351     4.74       2,625,862     30,925     4.71  
    Total interest bearing liabilities   41,230,709     364,647     3.54       42,765,949     411,849     3.85       41,556,588     435,108     4.19  
    Non-interest bearing deposits   11,222,562             11,266,899             11,183,127        
    Other liabilities   1,591,320             1,577,331             1,791,458        
    Shareholders’ equity   7,458,177             7,255,159             6,725,695        
    Total liabilities and shareholders’ equity $ 61,502,768           $ 62,865,338           $ 61,256,868        
                                       
    Net interest income/interest rate spread (5)     $ 421,378     1.99 %       $ 424,277     1.90 %       $ 394,847     1.67 %
    Tax equivalent adjustment       (1,273 )             (1,300 )             (1,299 )    
    Net interest income, as reported     $ 420,105             $ 422,977             $ 393,548      
    Net interest margin (6)         2.95             2.91             2.78  
    Tax equivalent effect         0.01             0.01             0.01  
    Net interest margin on a fully tax equivalent basis (6)         2.96 %           2.92 %           2.79 %
                                             

    _________

    (1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
    (2) Loans are stated net of unearned income and include non-accrual loans.
    (3) The yield for securities that are classified as available for sale is based on the average historical amortized cost.
    (4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition.
    (5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
    (6) Net interest income as a percentage of total average interest earning assets.
       

    SHAREHOLDERS RELATIONS
    Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

    Contact: Travis Lan
      Senior Executive Vice President and
      Chief Financial Officer
      973-686-5007

    The MIL Network –

    April 24, 2025

  • MIL-OSI Economics: Thales reports its order intake and sales for the first quarter of 2025

    Source: Thales Group

    Headline: Thales reports its order intake and sales for the first quarter of 2025

    24 Apr 2025

    Share this article

    • Order intake: €3.8 billion, down -25% (-27% on an organic basis1)
    • Sales: €5.0 billion, up +12.2% (+9.9% on an organic basis)
    • All 2025 financial objectives confirmed2

    Thales (Euronext Paris: HO) today announced its order intake and sales for the first quarter of 2025.

     

    “In the first quarter of 2025, Thales recorded organic sales growth of nearly 10%, demonstrating the strong momentum of our Defence and Avionics activities, as well as the excellent visibility the Group enjoys.
    ​Order intake in the first quarter of 2025 was solid, and showed growth compared to the same periods in 2022 and 2023. The decline observed compared to the first quarter of 2024 is explained by a particularly high comparison basis.
    ​Thanks to the commitment of our teams, we confirm all our annual financial targets for 2025, including a book-to-bill ratio over 1 for the year 2025.    ” ​
    ​Patrice Caine, Chairman & Chief Executive Officer

    Order intake

    Order intake for the first quarter of 2025 amounted to €3,778 million, down -27% at constant scope and exchange rates compared to the first three months of 2024 (-25% on a reported basis) due to a very high comparison base, particularly in the Defence segment. In the first quarter of 2024, Thales had recorded, among other contracts, two contracts with a unit value exceeding €500 million each: the third phase of the contract signed by Indonesia for the acquisition of Rafale aircraft (18 out of a total of 42), as well as an order for an air surveillance system for a military customer in the Middle East. However, the Group is benefiting from a robust commercial momentum in all its activities for this first quarter of 2025, particularly in the Aerospace segment. For reference, order intake amounted to €3,422 million in Q1 2023 and €3,033 million in Q1 2022.

    During the first quarter of 2025, Thales recorded five large orders worth over €100 million each, for a total of €707 million:

    • Order from Space Norway, Northern Europe’s leading satellite operator, for the supply of a telecommunications satellite, THOR 8;
    • Order from SKY Perfect JSAT to Thales Alenia Space for JSAT-32, a geostationary telecommunications satellite;
    • Signing of a contract between Thales and the European Space Agency (ESA) to develop Argonaut, a future autonomous and versatile lunar lander designed to deliver cargo and scientific instruments to the Moon;
    • Order from the Dutch Ministry of Defence for the modernisation and support of vehicle tactical simulators;
    • Order from the French Defence Procurement Agency (DGA) for the development, production, and maintenance of vetronics equipment for various Army vehicles as part of the SCORPION programme.

    At €3,071 million, order intake with a unit value of less than €100 million was down -10% compared to the first three months of 2024; meanwhile, those with a unit value of less than €10 million were slightly up in the first quarter of 2025.

    Geographically4, order intake in mature markets amounted to €2,914 million, similar to the first quarter of 2024 (+2% on a reported basis and a decrease of -1% at constant scope and exchange rates). Order intake in emerging markets amounted to €864 million (-61% as of March 31, 2025, in organic terms), affected by a very high comparison basis in these markets from the first quarter of 2024 (contracts for the Rafale in Indonesia and for an air surveillance system for a military customer in the Middle East mentioned previously).

    Order intake in the Aerospace segment totaled €1,530 million, compared to €1,003 million in the first three months of 2024 (+45% at constant scope and exchange rates). The Avionics market continued to benefit from strong demand across its various businesses and recorded one large order with a unit value exceeding €100 million in its Training and Simulation business. In addition, Space benefited in the first quarter from favorable phasing of expected 2025 order intake, with the notification of three large orders with a unit value greater than €100 million, two related to the telecommunications business and one to the exploration business.

    At €1,302 million (compared to €3,122 million in the first three months of 2024, representing an organic change of -59%), order intake in the Defence segment compared to a very high base in Q1 2024. One large order with a unit value over €100 million was recorded in the first quarter of 2025 compared to four in the same period in 2024. The Group reaffirms its objective of a book-to-bill ratio greater than 1 for the Defence segment in 2025.

    At €922 million, order intake in the Cyber & Digital segment was structurally very close to sales as most business lines in this segment operate on short sales cycles. The order book is therefore not significant.

    Sales

    Sales for the first quarter of 2025 reached €4,960 million, compared to €4,421 million in the first quarter of 2024, up 9.9%5 at constant scope and exchange rates (up 12.2% on a reported basis).

    Geographically6, sales recorded solid growth in both mature markets (+9.7% in organic terms), notably in the United Kingdom (+14.9%) and emerging markets with organic growth of +10.5% during the period.

    Sales in the Aerospace segment amounted to €1,342 million, up 13.5% compared to the first quarter of 2024 (+8.4% at constant scope and exchange rates). This growth reflects ongoing robust demand in the Avionics market, leading the business to grow double-digit and achieve a solid performance across all activities as well as in both civil and military domains. Sales in the Space business continue to be impacted by the weak demand observed over the past two years in telecommunications satellites.

    Sales in the Defence segment totaled €2,685 million, up +16.5% compared to the first quarter of 2024 (+15.0% at constant scope and exchange rates). This growth is observed across all businesses in the Defence segment, notably in land and air systems, which benefitted from production capacity expansion projects being deployed, especially for radars’ production.

    Sales in the Cyber & Digital segment stood at €903 million, down -1.5% compared to the first three months of 2024 (-2.1% at constant scope and exchange rates), reflecting contrasting trends:

    • Cyber businesses were stable in the first quarter of 2025 (+0.2% at constant scope and exchange rates):
      • The Cyber Security Products business is recording growth, leveraging Imperva’s complementary offer. The beginning of 2025 is moreover marked by the merger of the Imperva and Thales’ sales teams, a key step in the integration process that will unlock the full potential of the business, though its execution may generate some short-term disturbances;
      • The Cyber Premium Services business was impacted by a soft market demand start this first 2025 quarter, notably in Australia, and reported a decline in sales compared to the first quarter of 2024. For this business, which represents approximately 20% of total Cyber activity, the Group’s priority is to standardise operations to improve margins and focus the sales strategy on selective profitable growth segments.
    • In Digital businesses (down -3.6% at constant scope and exchange rates):
      • Sales from Payment Services returned to positive growth in the first quarter of 2025, after five consecutive quarters of decline;
      • Sales in Identity and Biometrics solutions declined. This business faced revenues downturn due to COVID in 2020. Post pandemic, an important catch-up effect occurred through to 2024, in the travel documents segment. As a consequence, the comparison effect is not favourable as this business is now normalising to a more usual run rate.

    Outlook

    Thales continues to benefit from a strong visibility in the vast majority of its businesses and enjoys a robust medium to long-term outlook.

    The Group has initiated preliminary work to assess the impacts of the increase in tariffs, as they are stand today. Such analysis takes into account the affected flows on the one hand, and the cases of exemption from tariffs on the other hand (such as in defence activities), along with certain protective contractual conditions in our export contracts (incoterms). Furthermore, Thales is working on mitigation plans in response to these new regulations: use of specific customs programmes such as duty drawback or temporary Importations under Bonds, the redirection of certain production flows, transfer pricing, supply chain adjustments (alternate sourcing), customer surcharging…

    These estimates are based on the latest available information on announced tariffs increases and exemptions as known on April 24, 2025, and Thales’ estimates to date. At this stage, the Group estimates that the net direct impact from those elements is contained. The potential indirect impact is not known at this stage.

    As a result, assuming no new disruptions of the macroeconomic geopolitical context and the evolution of new tariffs, Thales confirms all of its 2025 financial objectives, as listed below:

    • A book-to-bill ratio above 1;
    • Organic sales growth of between +5% and +6%, corresponding to annual sales in the range of €21.7 billion to €21.9 billion7;
    • An Adjusted EBIT margin between 12.2% and 12.4%.

    ****

    This press release contains certain forward-looking statements. Although Thales believes that its expectations are based on reasonable assumptions, actual results may differ significantly from the forward-looking statements due to various risks and uncertainties, as described in the Company’s Universal Registration Document, which has been filed with the French financial markets authority (Autorité des marchés financiers – AMF).

     

    1In this press release, “organic” means “at constant scope and exchange rates”.

    2Assuming no new disruptions of the macroeconomic geopolitical context or evolution of new tariffs.

    3Mature markets: Europe, North America, Australia, New Zealand. Emerging markets: all other countries.

    4See table on page 6.

    5Taking into account a currency effect of €17 million and a net scope effect of €84 million.

    6See table on page 6.

    7 Based on April 2025 scope and year to date average foreign exchange rates as of April 2025.

    MIL OSI Economics –

    April 24, 2025

  • MIL-OSI Asia-Pac: DH supports World Immunisation Week by urging public to get vaccinated on time against serious threats posed by vaccine preventable diseases

    Source: Hong Kong Government special administrative region

    In support of World Immunisation Week organised by the World Health Organization (WHO) in the last week of April every year, the Centre for Health Protection (CHP) of the Department of Health (DH) today (April 24) reminded the public that timely vaccinations can safeguard individual and community health from serious threats posed by vaccine-preventable diseases.
     
    “Immunisation is a safe and effective public health measure. Over the past 50 years, vaccines are effective against diseases that have saved more than 150 million lives worldwide. Hong Kong has long been providing vaccinations for children since the 1950s. Building on the WHO’s Expanded Programme on Immunisation and scientific evidence, the Hong Kong Childhood Immunisation Programme has been making continuous progress in terms of vaccine variety, vaccination schedules and service network coverage. With the support of parents, schools and the healthcare sector, Hong Kong maintains a very high vaccination coverage rate, which not only keeps most of the vaccine-preventable diseases under control, but also contributed to the eradication of smallpox and poliomyelitis in Hong Kong in 1980 and 2000 respectively, followed by successful elimination of measles and rubella (German measles) in Hong Kong in 2016 and 2021 respectively. In addition, the DH has been actively adopting a public-private partnership approach in providing vaccination services through private doctors to help parents and children receive the vaccines to increase the overall vaccination coverage. Taking the seasonal influenza vaccine as an example, the uptake rate of the vaccine for most age groups in the current season has increased as compared with the previous one,” the Controller of the CHP of the DH, Dr Edwin Tsui said.
     
    The Scientific Committee on Vaccine Preventable Diseases (SCVPD) under the CHP makes recommendations on vaccines for different groups (e.g. children, pregnant women, the elderly etc) based on local epidemiology and the latest scientific evidence from a public health perspective. With reference to the recommendations of the SCVPD, the Government provides different types of vaccines and boosters for children from birth to Primary Six to protect them from 12 communicable diseases, as well as other vaccination services such as seasonal influenza vaccine, pneumococcal vaccine, and the COVID-19 vaccines for people in high-risk groups to boost their immunity and reduce the risk of infection or severe complications.
     
    “Due to a drop in vaccination coverage during the COVID-19 pandemic, there has been a recent resurgence of outbreaks of vaccine-preventable diseases outside Hong Kong. For example, measles cases in Europe, the United States and neighboring countries, such as Japan, Vietnam and Cambodia, are on the rise, where children who have not yet completed their vaccinations or have unknown vaccination status were mainly affected. For pertussis, the number of cases reported in Japan, the United States and New Zealand this year are also higher than that of the same period in previous years, with most of the affected cases being infants and adolescents, underscoring the importance of timely vaccinations for maintaining a high vaccination rate and herd immunity,” Dr Tsui said.
     
    He reminded the public to make sure that they have completed their required immunisation if they plan to visit places with outbreaks or high incidences of vaccine-preventable diseases. Anyone who has not completed immunisation or with an unknown vaccination history should consult his/her family doctor at least two weeks before travelling.
     
    The incubation period of measles is seven to 21 days. Symptoms include fever, skin rash, cough, runny nose and red eyes. While for pertussis, the infected person may initially be sneezing and have a runny nose, a low-grade fever and a mild cough. The cough gradually becomes more severe and may even lead to seizures and coma in severe cases. If such symptoms appear after returning from places where measles and pertussis are endemic, people should wear surgical masks, stay home from work or school, avoid crowded places and seek medical advice as soon as possible.
     
    For more information on the World Immunisation Week 2025, please visit the CHP website.

    MIL OSI Asia Pacific News –

    April 24, 2025

  • MIL-OSI Europe: EU Fact Sheets – Freedom of establishment and freedom to provide services – 23-04-2025

    Source: European Parliament

    The freedoms of establishment and service provision are pivotal for business and professional mobility within the EU. The complete implementation of the Services Directive is crucial for solidifying the internal market, but obstacles still persist. The COVID-19 pandemic added new challenges. In response, the European Parliament passed a resolution in February 2022, outlining how economic recovery after COVID-19 can best mitigate the negative effects on these vital freedoms.

    MIL OSI Europe News –

    April 24, 2025

  • MIL-OSI: WTW Reports First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    • Revenue1decreased 5% over prior year to $2.2 billion for the quarter due to the sale of TRANZACT
    • Organic Revenue growth of 5% for the quarter
    • Diluted Earnings per Share was $2.33 for the quarter, up 27% over prior year
    • Adjusted Diluted Earnings per Share was $3.13 for the quarter, comparable to prior year2
    • Operating Margin was 19.4% for the quarter, up 740 basis points over prior year
    • Adjusted Operating Margin was 21.6% for the quarter, up 100 basis points from prior year2

    LONDON, April 24, 2025 (GLOBE NEWSWIRE) — WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the first quarter ended March 31, 2025.

    “We had a solid start to the year, delivering results in line with our expectations and making strong progress on our strategy to accelerate our performance, enhance our efficiency and optimize our portfolio,” said Carl Hess, WTW’s chief executive officer. “We are well-positioned to help our clients navigate economic uncertainty and highly focused on driving continued growth and margin expansion, and we are confident in our outlook. I’m proud of our team’s dedication and look forward to achieving our strategic and financial goals together.”

    Consolidated Results

    As reported, USD millions, except %

    Key Metrics Q1-25 Q1-242 Y/Y Change
    Revenue1 $2,223 $2,341 Reported (5)% | CC (4)% | Organic 5%
    Income from Operations $432 $280 54%
    Operating Margin % 19.4% 12.0% 740 bps
    Adjusted Operating Income $480 $483 (1)%
    Adjusted Operating Margin % 21.6% 20.6% 100 bps
    Net Income $239 $194 23%
    Adjusted Net Income $316 $325 (3)%
    Diluted EPS $2.33 $1.83 27%
    Adjusted Diluted EPS $3.13 $3.13 0%
    1 The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. The segment discussion is on an organic basis.
    2 Refer to “WTW Non-GAAP Measures” below and the Q1-25 Supplemental Slides for recast of historical Non-GAAP measures.
       

    Revenue was $2.22 billion for the first quarter of 2025, a decrease of 5% as compared to $2.34 billion for the same period in the prior year. Excluding the impact of foreign currency, revenue decreased 4%. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

    Net Income for the first quarter of 2025 was $239 million compared to Net Income of $194 million in the prior-year first quarter. Adjusted EBITDA for the first quarter was $532 million, or 23.9% of revenue, a decrease of 3%, compared to Adjusted EBITDA of $546 million, or 23.3% of revenue, in the prior-year first quarter. The U.S. GAAP tax rate for the first quarter was 21.5%, and the adjusted income tax rate for the first quarter used in calculating adjusted diluted earnings per share was 22.7%.

    Cash Flow and Capital Allocation

    Cash flows used in operating activities were $35 million for the quarter ended March 31, 2025, compared to cash flows from operating activities of $24 million for the prior year. Free cash flow for the quarters ended March 31, 2025 and 2024 was $(86) million and $(36) million, respectively, a decrease of $50 million, primarily driven by the absence of cash collections related to TRANZACT, which the Company sold on December 31, 2024, and increased compensation payments in the current-year quarter as compared to the prior-year quarter. During the quarter ended March 31, 2025, the Company repurchased 607,221 of its outstanding shares for $200 million.

    First Quarter 2025 Segment Highlights

    Health, Wealth & Career (“HWC”)

    As reported, USD millions, except %

    Health, Wealth & Career Q1-25 Q1-24 Y/Y Change
    Total Revenue $1,165 $1,336 Reported (13)% | CC (12)% | Organic 3%
    Operating Income $311 $336 (7)%
    Operating Margin % 26.7% 25.1% 160 bps
           

    The HWC segment had revenue of $1.17 billion in the first quarter of 2025, a decrease of 13% (12% decrease constant currency and organic growth of 3%) from $1.34 billion in the prior year. Health delivered organic revenue growth in all regions driven by solid client retention, new business and geographic expansion. Wealth generated organic revenue growth from higher levels of Retirement work in Europe and International, alongside growth in our Investments business due to the success of our LifeSight solution and capital market improvements. Career had modest revenue growth as increased advisory work was tempered by some postponements amid economic uncertainty. Benefits Delivery & Outsourcing revenue grew primarily from increased project and core administration work.

    Operating margins in the HWC segment increased 160 basis points from the prior-year first quarter to 26.7%, primarily due to the sale of TRANZACT and savings from the Transformation program. Please refer to the Supplemental Slides for TRANZACT’s standalone historical financial results.

    Risk & Broking (“R&B”)

    As reported, USD millions, except %

    Risk & Broking Q1-25 Q1-24 Y/Y Change
    Total Revenue $1,027 $978 Reported 5% | CC 7% | Organic 7%
    Operating Income $226 $203 11%
    Operating Margin % 22.0% 20.8% 120 bps
           

    The R&B segment had revenue of $1.03 billion in the first quarter of 2025, an increase of 5% (7% increase constant currency and organic) from $978 million in the prior year. Corporate Risk & Broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention globally. Insurance Consulting and Technology (ICT) had organic revenue growth for the quarter driven by the Consulting and Technology practices.

    Operating margins in the R&B segment increased 120 basis points from the prior-year first quarter to 22.0%, due primarily to operating leverage driven by strong organic revenue growth and savings from the Transformation program which were partially offset by headwinds from decreased interest income and foreign currency fluctuations.

    Select 2025 Financial Considerations

    Changes to Non-GAAP financial measures:

    • All reported non-GAAP metrics will exclude non-cash net periodic pension and postretirement benefits
    • Free cash flow and free cash flow margin will capture cash outflows for capitalized software costs
    • Refer to Supplemental Slides for recast of historical Non-GAAP measures

    Business mix:

    • TRANZACT business, which contributed $1.14 to adjusted diluted earnings per share in 2024, is no longer part of the business portfolio following the completion of the TRANZACT sale in the fourth quarter of 2024
    • Reinsurance joint venture with Bain Capital expected to be a headwind on adjusted diluted earnings per share of approximately $0.25 to $0.35

    Free cash flow:

    • Expect cash outflows in 2025 from the payment of accrued costs related to the Transformation program which concluded in 2024
    • Cash taxes related to receipt of earnout from reinsurance divestiture will be classified as Cash Flows from Operating Activities on Statement of Cash Flows

    Capital allocation:

    • Expect share repurchases of ~$1.5 billion, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities

    Foreign exchange:

    • Expect a foreign currency impact on adjusted diluted earnings per share to be neutral in 2025 at today’s rates

    Adjusted operating margin outlook:

    • ~100 basis points of average annual margin expansion over next 3 years in R&B
    • Incremental annual margin expansion at HWC and enterprise levels

    The 2025 Financial Considerations above include Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained under “WTW Non-GAAP Measures” below.

    Conference Call

    The Company will host a live webcast and conference call to discuss the financial results for the first quarter 2025. It will be held on Thursday, April 24, 2025, beginning at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available on WTW’s website here. The conference call will include a question-and-answer session. To participate in the question-and-answer session, please register here. An online replay will be available at www.wtwco.com shortly after the call concludes.

    About WTW

    At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.

    WTW Non-GAAP Measures

    In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

    We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

    Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:

    • Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
    • Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
    • Net periodic pension and postretirement benefits – Adjustment to remove the recognition of net periodic pension and postretirement benefits (including pension settlements), other than service costs. We have included this adjustment as applicable in our prior-period disclosures in order to conform to the current-period presentation.

    We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

    We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

    Our non-GAAP measures and their accompanying definitions are presented as follows:

    Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.

    Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.

    Adjusted Operating Income/Margin – Income from operations adjusted for amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.

    Adjusted EBITDA/Margin – Net Income adjusted for provision for income taxes, interest expense, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.

    Adjusted Net Income – Net Income Attributable to WTW adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.

    Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.

    Adjusted Income Before Taxes – Income from operations before income taxes and interest in earnings of associates adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.

    Adjusted Income Taxes/Tax Rate – Provision for income taxes adjusted for taxes on certain items of amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, the tax effects of significant adjustments and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.

    Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations. As a result of our change in presentation, free cash flow for the prior period has been adjusted to conform to the current period, which includes the deduction of our capitalized software costs.

    Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.

    These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.

    WTW Forward-Looking Statements

    This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, that address activities, events or developments that we expect or anticipate may occur in the future, including such things as: our outlook; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; future share repurchases; financial results (including our revenue, costs or margins) and the impact of changes to tax laws on our financial results; existing and evolving business strategies including those related to acquisition and disposition; demand for our services and competitive strengths; strategic goals; the benefits of new initiatives; growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives generated from our now-completed multi-year operational transformation program or other expense savings initiatives; our recognition of future impairment charges; and plans and references to future successes, including our future financial and operating results, short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.

    There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates, changes in trade policies, increased tariffs and retaliatory actions; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including those relating to changes in trade policies and tariffs, as well as political events, war, such as the Russia-Ukraine and Israel-Hamas wars, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, such as uncertainty in the global markets, inflation, changes in interest rates and recessionary trends, changes in spending by government agencies and contractors, which could have a material adverse effect on our business, financial condition, results of operations and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity and artificial intelligence; the risks relating to the transitional arrangements in effect subsequent to our now-completed sale of TRANZACT; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing or potential future litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to make divestitures or acquisitions, including our ability to integrate or manage acquired businesses or carve-out businesses to be disposed, as well as our ability to identify and successfully execute on opportunities for strategic collaboration; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; our ability to successfully manage ongoing organizational changes, including as a result of our recently-completed multi-year operational transformation program, investments in improving systems and processes, and in connection with our acquisition and divestiture activities; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; risks relating to changes in our management structures and in senior leadership; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of global trade policies and retaliatory considerations as well as foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics changes for internal operations, maintaining industry standards and meeting client preferences; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our businesses; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least 10% of our shares; changes in accounting principles, estimates or assumptions; our recognition of future impairment charges; risks relating to or arising from environmental, social and governance (‘ESG’) practices; fluctuation in revenue against our relatively fixed or higher-than-expected expenses; the risk that investment levels increase; the laws of Ireland being different from the laws of the U.S. and potentially affording less protections to the holders of our securities; and our holding company structure potentially preventing us from being able to receive dividends or other distributions in needed amounts from our subsidiaries.

    The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at http://www.sec.gov or www.wtwco.com.

    Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.

    Our forward-looking statements speak only as of the date made and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.

    Contact

    INVESTORS
    Claudia De La Hoz | Claudia.Delahoz@wtwco.com

       
      WTW
    Supplemental Segment Information
    (In millions of U.S. dollars)
    (Unaudited)
       
    REVENUE  
                Components of Revenue Change(i)
                      Less:       Less:    
      Three Months Ended
    March 31,    		   As Reported   Currency   Constant
    Currency    		   Acquisitions/   Organic
      2025   2024   % Change   Impact   Change   Divestitures   Change
                                   
    Health, Wealth & Career                              
    Revenue excluding interest income $ 1,158     $ 1,327       (13)%       (1)%       (12)%       (14)%       3%  
    Interest income   7       9                      
    Total   1,165       1,336       (13)%       (1)%       (12)%       (14)%       3%  
                                   
    Risk & Broking                              
    Revenue excluding interest income $ 1,005     $ 950       6%       (2)%       8%       0%       8%  
    Interest income   22       28                      
    Total   1,027       978       5%       (2)%       7%       0%       7%  
                                   
    Segment Revenue $ 2,192     $ 2,314       (5)%       (2)%       (4)%       (8)%       5%  
    Corporate, reimbursable expenses and other   21       21                      
    Interest income   10       6                      
    Revenue $ 2,223     $ 2,341       (5)%       (1)%       (4)%       (8)%     5%(ii)
    (i) Components of revenue change may not add due to rounding.
    (ii) Interest income did not contribute to organic change for the three months ended March 31, 2025.
       

    BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME

      Three Months Ended March 31,
      HWC   R&B   Corporate   Total
      2025   2024   2025   2024   2025   2024   2025   2024
    Book-of-business settlements $ 2     $ —     $ —     $ 2     $ —     $ —     $ 2     $ 2  
    Interest income   7       9       22       28       10       6       39       43  
    Total $ 9     $ 9     $ 22     $ 30     $ 10     $ 6     $ 41     $ 45  
                                                                   

    SEGMENT OPERATING INCOME (i)

      Three Months Ended
    March 31,
      2025   2024
               
    Health, Wealth & Career $ 311     $ 336  
    Risk & Broking   226       203  
    Segment Operating Income $ 537     $ 539  
    (i) Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes.
       

    SEGMENT OPERATING MARGINS

      Three Months Ended March 31,
      2025   2024
    Health, Wealth & Career   26.7%       25.1%  
    Risk & Broking   22.0%       20.8%  
                   

    RECONCILIATION OF SEGMENT OPERATING INCOME TO INCOME FROM OPERATIONS BEFORE INCOME TAXES

      Three Months Ended March 31,
      2025   2024
               
    Segment Operating Income $ 537     $ 539  
    Amortization   (48 )     (60 )
    Restructuring costs   —       (18 )
    Transaction and transformation(i)   —       (125 )
    Unallocated, net(ii)   (57 )     (56 )
    Income from Operations   432       280  
    Interest expense   (65 )     (64 )
    Other (loss)/income, net   (64 )     26  
    Income from operations before income taxes and interest in earnings of associates $ 303     $ 242  
    (i) In addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program.
    (ii) Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.
       
    WTW
    Reconciliations of Non-GAAP Measures
    (In millions of U.S. dollars, except per share data)
    (Unaudited)
         
    RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE
         
      Three Months Ended March 31,
      2025   2024
               
    Net income attributable to WTW $ 235     $ 190  
    Adjusted for certain items:          
    Amortization   48       60  
    Restructuring costs   —       18  
    Transaction and transformation   —       125  
    Net periodic pension and postretirement benefits   75       (22 )
    Gain on disposal of operations   (14 )     —  
    Tax effect on certain items listed above(i)   (28 )     (46 )
    Adjusted Net Income $ 316     $ 325  
               
    Weighted-average ordinary shares, diluted   101       104  
               
    Diluted Earnings Per Share $ 2.33     $ 1.83  
    Adjusted for certain items:(ii)          
    Amortization   0.48       0.58  
    Restructuring costs   —       0.17  
    Transaction and transformation   —       1.21  
    Net periodic pension and postretirement benefits   0.74       (0.21 )
    Gain on disposal of operations   (0.14 )     —  
    Tax effect on certain items listed above(i)   (0.28 )     (0.44 )
    Adjusted Diluted Earnings Per Share(ii) $ 3.13     $ 3.13  
    (i) The tax effect was calculated using an effective tax rate for each item.
    (ii) Per share values and totals may differ due to rounding.
       

    RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

      Three Months Ended March 31,        
      2025       2024    
                               
    Net Income $ 239       10.8%     $ 194       8.3%  
    Provision for income taxes   65               48          
    Interest expense   65               64          
    Depreciation   54               59          
    Amortization   48               60          
    Restructuring costs   —               18          
    Transaction and transformation   —               125          
    Net periodic pension and postretirement benefits   75               (22 )        
    Gain on disposal of operations   (14 )             —          
    Adjusted EBITDA and Adjusted EBITDA Margin $ 532       23.9%     $ 546       23.3%  
                                   

    RECONCILIATION OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME

      Three Months Ended March 31,    
      2025           2024    
                       
    Income from operations and Operating margin $ 432       19.4%     $ 280       12.0%  
    Adjusted for certain items:                  
    Amortization   48               60      
    Restructuring costs   —               18      
    Transaction and transformation   —               125      
    Adjusted operating income and Adjusted operating income margin $ 480       21.6%     $ 483       20.6%  
                                   

    RECONCILIATION OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE

      Three Months Ended March 31,
      2025   2024
               
    Income from operations before income taxes and interest in earnings of associates $ 303     $ 242  
               
    Adjusted for certain items:          
    Amortization   48       60  
    Restructuring costs   —       18  
    Transaction and transformation   —       125  
    Net periodic pension and postretirement benefits   75       (22 )
    Gain on disposal of operations   (14 )     —  
    Adjusted income before taxes $ 412     $ 423  
               
    Provision for income taxes $ 65     $ 48  
    Tax effect on certain items listed above(i)   28       46  
    Adjusted income taxes $ 93     $ 94  
               
    U.S. GAAP tax rate   21.5 %     19.9 %
    Adjusted income tax rate   22.7 %     22.3 %
    (i) The tax effect was calculated using an effective tax rate for each item.
       

    RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW

      Years Ended December 31,
      2025   2024
               
    Cash flows (used in)/from operating activities $ (35 )   $ 24  
    Less: Additions to fixed assets and software   (51 )     (60 )
    Free Cash Flow $ (86 )   $ (36 )
                   
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Statements of Income
    (In millions of U.S. dollars, except per share data)
    (Unaudited)
         
      Three Months Ended
    March 31,
      2025   2024
    Revenue $ 2,223     $ 2,341  
               
    Costs of providing services          
    Salaries and benefits   1,324       1,342  
    Other operating expenses   365       457  
    Depreciation   54       59  
    Amortization   48       60  
    Restructuring costs   —       18  
    Transaction and transformation   —       125  
    Total costs of providing services   1,791       2,061  
               
    Income from operations   432       280  
               
    Interest expense   (65 )     (64 )
    Other (loss)/income, net   (64 )     26  
               
    INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES   303       242  
               
    Provision for income taxes   (65 )     (48 )
               
    INCOME FROM OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES   238       194  
               
    Interest in earnings of associates, net of tax   1       —  
               
    NET INCOME   239       194  
               
    Income attributable to non-controlling interests   (4 )     (4 )
               
    NET INCOME ATTRIBUTABLE TO WTW $ 235     $ 190  
               
    EARNINGS PER SHARE          
    Basic earnings per share $ 2.34     $ 1.84  
    Diluted earnings per share $ 2.33     $ 1.83  
               
    Weighted-average ordinary shares, basic   100       103  
    Weighted-average ordinary shares, diluted   101       104  
                   
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Balance Sheets
    (In millions of U.S. dollars, except share data)
    (Unaudited)
               
      March 31,   December 31,
      2025   2024
    ASSETS          
    Cash and cash equivalents $ 1,507     $ 1,890  
    Fiduciary assets   10,293       9,504  
    Accounts receivable, net   2,366       2,494  
    Prepaid and other current assets   1,295       1,217  
    Total current assets   15,461       15,105  
    Fixed assets, net   667       661  
    Goodwill   8,841       8,799  
    Other intangible assets, net   1,255       1,295  
    Right-of-use assets   487       485  
    Pension benefits assets   550       530  
    Other non-current assets   803       806  
    Total non-current assets   12,603       12,576  
    TOTAL ASSETS $ 28,064     $ 27,681  
    LIABILITIES AND EQUITY          
    Fiduciary liabilities $ 10,293     $ 9,504  
    Deferred revenue and accrued expenses   1,499       2,211  
    Current debt   549       —  
    Current lease liabilities   120       118  
    Other current liabilities   923       765  
    Total current liabilities   13,384       12,598  
    Long-term debt   4,761       5,309  
    Liability for pension benefits   552       615  
    Provision for liabilities   359       341  
    Long-term lease liabilities   498       502  
    Other non-current liabilities   296       299  
    Total non-current liabilities   6,466       7,066  
    TOTAL LIABILITIES   19,850       19,664  
    COMMITMENTS AND CONTINGENCIES          
    EQUITY(i)          
    Additional paid-in capital   11,017       10,989  
    Retained earnings   51       109  
    Accumulated other comprehensive loss, net of tax   (2,935 )     (3,158 )
    Total WTW shareholders’ equity   8,133       7,940  
    Non-controlling interests   81       77  
    Total Equity   8,214       8,017  
    TOTAL LIABILITIES AND EQUITY $ 28,064     $ 27,681  
         
    (i) Equity includes (a) Ordinary shares $0.000304635 nominal value; Authorized 1,510,003,775; Issued 99,210,847 (2025) and 99,805,780 (2024); Outstanding 99,210,847 (2025) and 99,805,780 (2024) and (b) Preference shares, $0.000115 nominal value; Authorized 1,000,000,000 and Issued none in 2025 and 2024.
         
    WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY
    Condensed Consolidated Statements of Cash Flows
    (In millions of U.S. dollars)
    (Unaudited)
         
      Years Ended March 31,
      2025   2024
    CASH FLOWS (USED IN)/FROM OPERATING ACTIVITIES          
    NET INCOME $ 239     $ 194  
    Adjustments to reconcile net income to total net cash from operating activities:          
    Depreciation   54       59  
    Amortization   48       60  
    Non-cash restructuring charges   —       11  
    Non-cash lease expense   25       27  
    Net periodic cost/(benefit) of defined benefit pension plans   88       (4 )
    Provision for doubtful receivables from clients   5       8  
    Benefit from deferred income taxes   (23 )     (9 )
    Share-based compensation   37       24  
    Net gain on disposal of operations   (14 )     —  
    Non-cash foreign exchange loss/(gain)   9       (1 )
    Other, net   9       8  
    Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:          
    Accounts receivable   162       113  
    Other assets   1       (53 )
    Other liabilities   (691 )     (426 )
    Provisions   16       13  
    Net cash (used in)/from operating activities   (35 )     24  
               
    CASH FLOWS USED IN INVESTING ACTIVITIES          
    Additions to fixed assets and software   (51 )     (60 )
    Acquisitions of operations, net of cash acquired   (1 )     (15 )
    (Purchase)/sale of investments   (32 )     1  
    Net cash used in investing activities   (84 )     (74 )
               
    CASH FLOWS FROM FINANCING ACTIVITIES          
    Senior notes issued   —       746  
    Debt issuance costs   —       (7 )
    Repayments of debt   (1 )     (1 )
    Repurchase of shares   (200 )     (101 )
    Net proceeds from fiduciary funds held for clients   315       1,011  
    Cash paid for employee taxes on withholding shares   (2 )     (5 )
    Dividends paid   (88 )     (86 )
    Acquisitions of and dividends paid to non-controlling interests   —       (1 )
    Net cash from financing activities   24       1,556  
               
    (DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   (95 )     1,506  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   80       (47 )
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD (i)   4,998       3,792  
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD (i) $ 4,983     $ 5,251  
    (i) The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosure of Cash Flow Information section.
       

    SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

      Years Ended March 31,
      2025   2024
               
    Supplemental disclosures of cash flow information:          
    Cash and cash equivalents $ 1,507     $ 1,893  
    Fiduciary funds (included in fiduciary assets)   3,476       3,358  
    Total cash, cash equivalents and restricted cash $ 4,983     $ 5,251  
               
    (Decrease)/increase in cash, cash equivalents and other restricted cash $ (411 )   $ 487  
    Increase in fiduciary funds   316       1,019  
    Total (i) $ (95 )   $ 1,506  
    (i) Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash.
       

    The MIL Network –

    April 24, 2025

  • MIL-OSI NGOs: The first 72 hours of a cholera outbreak

    Source: Médecins Sans Frontières –

    Infectious diseases specialist Diyani Dewasurendra was on assignment in Malakal, South Sudan, when a cholera outbreak began. She goes through what happened during the first 72 hours and explains why vaccination is important for bringing outbreaks under control.

    Diyani Dewasurendra, infectious disease specialist Every epidemic begins with a suspicion – a sudden rise in illness, recurring symptoms and the first severely ill patients. In crisis zones, infectious diseases can spread at lightning speed. Every minute counts when trying to contain them. The first 72 hours are critical: we need to act fast and strategically to save lives and prevent a disaster.

    Infectious diseases specialist Diyani Dewasurendra checks on a child at the MSF hospital in Malakal. South Sudan, 2023.

    Hour 0–12: first signs and initial measures

    At our hospital in Malakal, we suddenly saw a spike in children arriving with severe diarrhoea. In a region with limited access to safe water, that’s a red flag. On top of that, it was March – the final month of the dry season. Since November, there had been almost no rainfall and many water sources had dried up.

    We knew cholera was a possibility – but we had to be sure.

    We collected samples and sent them to the lab. At the same time, we began monitoring case numbers. As soon as the first tests came back positive for cholera, we had to act quickly. The outbreak was now officially confirmed – and every minute counted.

    In a region where many people lack access to clean water, a disease like cholera can escalate quickly. One of the most dangerous aspects is that the only available water source is often a river – the same river where animals bathe, where people wash themselves, and from which they drink. In situations like this, contamination with germs can have catastrophic consequences. 

    Hour 12–24: isolation and protection measures

    The top priority is to stop the disease from spreading further. We immediately set up a cholera isolation ward at the hospital. In Malakal, this was especially challenging, as we already had a separate isolation area for measles. We had to ensure that patients with the two highly contagious diseases wouldn’t come into contact and that other patients would remain protected from infection.

    At the same time, we started prevention efforts: we installed additional handwashing stations and educated the public about the importance of hygiene and handwashing.

    Our health promoters went into surrounding communities to explain the early symptoms of cholera and when to seek treatment. Cholera is a severe diarrhoeal illness and diseases like this are especially dangerous for small children. Though treatable, an infection can lead to death within just a few hours if left untreated.

    Hour 24–48: treating patients and identifying the source

    While treating the first patients, we also assessed the water supply. In many parts of South Sudan, there are no wells or pumps – people collect water from rivers or ponds, which are often contaminated.

    I remember one situation where a mass cattle die-off occurred and hundreds of carcasses were left lying along the riverbank. Yet people had no choice – they had to continue drinking from the river. Many didn’t realise that the water could be dangerous.

    Together with the World Health Organization (WHO) and other partners, we tested the water quality and investigated potential sources of contamination. We knew we couldn’t just treat the disease – we had to prevent more people from getting infected.

    That’s why we started distributing clean water. In some villages, we used charcoal filters or chlorine treatment to improve the water supply in the long term. We also installed sanitation facilities like latrines.

    Hour 48–72: vaccination campaign and epidemic control

    Now the goal was not just to slow down the outbreak, but to bring it under control. In addition to treating those already infected, the next major step was vaccination. Cholera can be contained with an oral vaccine – a major advantage, as it allows us to quickly and efficiently vaccinate large groups of people.

    Before starting the vaccination campaign for the community, we had to protect our medical teams. Doctors, nurses and support staff are in direct contact with patients, so vaccination is essential for their survival. Only after that could we begin the large-scale rollout for the affected communities.

    Education also played a crucial role. In crisis areas, people are not generally sceptical of vaccines – but often, they simply don’t know that a vaccine exists. As soon as we explained the purpose and benefits of the vaccine to the first groups, acceptance increased rapidly.

    Acting fast saves lives

    The first 72 hours of an epidemic determine whether it can be contained or spirals into a disaster. In the case of the 2023 cholera outbreak, we were able to respond quickly and limit the number of cases to 1,471. After 90 days, on 16 May 2023, intervention was closed as the cases decreased significantly and the outbreak was contained.

    This outbreak once again showed how crucial are early diagnosis, isolation, identifying the source of infection and fast vaccination. Each of these steps is vital to saving lives.

    We work under extremely difficult conditions in crisis zones, but access to vaccines remains one of our most powerful tools in the fight against epidemics. At the same time, we must not forget that long-term solutions – such as access to clean water – are just as important to prevent future outbreaks.

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    MIL OSI NGO –

    April 24, 2025

  • MIL-OSI New Zealand: Unicef – Increases in vaccine-preventable disease outbreaks threaten years of progress, warn WHO, UNICEF, Gavi

    Source: UNICEF Aotearoa NZ

     Immunization efforts are under growing threat as misinformation, population growth, humanitarian crises, and funding cuts jeopardize progress and leave millions of children, adolescents, and adults at risk, warn WHO, UNICEF, and Gavi during World Immunization Week, 24-30 April.
    Outbreaks of vaccine-preventable diseases such as measles, meningitis, and yellow fever are rising globally, and diseases like diphtheria, which have long been held at bay or virtually disappeared in many countries, are at risk of re-emerging. In response, the agencies are calling for urgent and sustained political attention and investment to strengthen immunization programmes and protect significant progress achieved in reducing child mortality over the past 50 years.
    “Vaccines have saved more than 150 million lives over the past five decades,” said WHO Director-General, Dr Tedros Adhanom Ghebreyesus. “Funding cuts to global health have put these hard-won gains in jeopardy. Outbreaks of vaccine-preventable diseases are increasing around the world, putting lives at risk and exposing countries to increased costs in treating diseases and responding to outbreaks. Countries with limited resources must invest in the highest-impact interventions – and that includes vaccines.”
    Rising outbreaks and strained health systems
    Measles is making an especially dangerous comeback. The number of cases has been increasing year on year since 2021, tracking the reductions in immunization coverage that occurred during and since the COVID-19 pandemic in many communities. Measles cases reached an estimated 10.3 million in 2023, a 20 per cent increase compared to 2022.
    The agencies warn that this upward trend likely continued into 2024 and 2025, as outbreaks have intensified around the world. In the past 12 months, 138 countries have reported measles cases, with 61 experiencing large or disruptive outbreaks – the highest number observed in any 12-month period since 2019.
    Meningitis cases in Africa also rose sharply in 2024, and the upward trend has continued into 2025. In the first three months of this year alone, more than 5,500 suspected cases and nearly 300 deaths were reported in 22 countries. This follows approximately 26,000 cases and almost 1,400 deaths across 24 countries last year.
    Yellow fever cases in the African region are also climbing, with 124 confirmed cases reported in 12 countries in 2024. This comes after dramatic declines in the disease over the past decade, thanks to global vaccine stockpiles and the use of yellow fever vaccine in routine immunization programmes. In the region of the Americas, yellow fever outbreaks have been confirmed since the beginning of this year, with a total of 131 cases in 4 countries.
    These outbreaks come amidst global funding cuts. A recent WHO rapid stock take with 108 country offices of WHO-mostly in low- and lower-middle-income countries-shows that nearly half of those countries are facing moderate to severe disruptions to vaccination campaigns, routine immunization, and access to supplies due to reduced donor funding. Disease surveillance, including for vaccine-preventable diseases, is also impacted in more than half of the countries surveyed.
    At the same time, the number of children missing routine vaccinations has been increasing in recent years, even as countries make efforts to catch up children missed during the pandemic. In 2023, an estimated 14.5 million children missed all of their routine vaccine doses-up from 13.9 million in 2022 and 12.9 million in 2019. Over half of these children live in countries facing conflict, fragility, or instability, where access to basic health services is often disrupted.
    “The global funding crisis is severely limiting our ability to vaccinate over 15 million vulnerable children in fragile and conflict-affected countries against measles,” said UNICEF Executive Director Catherine Russell. “Immunization services, disease surveillance, and the outbreak response in nearly 50 countries are already being disrupted-with setbacks at a similar level to what we saw during COVID-19. We cannot afford to lose ground in the fight against preventable diseases.”
    Continued investment in the ‘Big Catch-Up initiative’, launched in 2023 to reach children who missed vaccines during the COVID-19 pandemic, and other routine immunization programmes will be critical.
    How immunization addresses these challenges
    Joint efforts by WHO, UNICEF, Gavi and partners have helped countries expand access to vaccines and strengthen immunization systems through primary health care, even in the face of mounting challenges. Every year, vaccines save nearly 4.2 million lives against 14 diseases – with nearly half of these lives saved in the African region.
    Vaccination campaigns have led to the elimination of meningitis A in Africa’s meningitis belt, while a new vaccine that protects against five strains of meningitis holds promise for broader protection, with efforts underway to expand its use for outbreak response and prevention.
    Progress has also been made in reducing yellow fever cases and deaths through increasing routine immunization coverage and emergency vaccine stockpiles, but recent outbreaks in Africa and in the Region of the Americas highlight the risks in areas with no reported cases in the past, low routine vaccination coverage and gaps in preventive campaigns.
    In addition, the past two years have seen substantial progress in other areas of immunization. In the African region, which has the highest cervical cancer burden in the world, HPV vaccine coverage nearly doubled between 2020 and 2023 from 21 per cent to 40 per cent, reflecting a concerted global effort towards eliminating cervical cancer. The progress in immunization also includes increases in global coverage of pneumococcal conjugate vaccines, particularly in the South-East Asia Region, alongside introductions in Chad and Somalia, countries with high disease burden.
    Another milestone is the sub-national introduction of malaria vaccines in nearly 20 African countries, laying the foundation to save half a million additional lives by 2035 as more countries adopt the vaccines and scale-up accelerates as part of the tools to fight malaria.
    Call to action
    UNICEF, WHO, and Gavi urgently call for parents, the public, and politicians to strengthen support for immunization. The agencies emphasize the need for sustained investment in vaccines and immunization programmes and urge countries to honour their commitments to the Immunization Agenda 2030 (IA2030).
    As part of integrated primary healthcare systems, vaccination can protect against diseases and connect families to other essential care, such as antenatal care, nutrition or malaria screening. Immunization is a ‘best buy’ in health with a return on investment of $54 for every dollar invested and provides a foundation for future prosperity and health security.
    “Increasing outbreaks of highly infectious diseases are a concern for the whole world. The good news is we can fight back, and Gavi’s next strategic period has a clear plan to bolster our defences by expanding investments in global vaccine stockpiles and rolling out targeted preventive vaccination in countries most impacted by meningitis, yellow fever and measles,” said Dr Sania Nishtar, CEO of Gavi, the Vaccine Alliance. “These vital activities, however, will be at risk if Gavi is not fully funded for the next five years and we call on our donors to support our mission in the interests of keeping everyone, everywhere, safer from preventable diseases.”
    Gavi’s upcoming high-level pledging summit taking place on 25 June 2025 seeks to raise at least US$ 9 billion from our donors to fund our ambitious strategy to protect 500 million children, saving at least 8 million lives from 2026-2030.

    MIL OSI New Zealand News –

    April 24, 2025

  • MIL-OSI Global: Fake cures and vaccine passports for sale: the conspiracy communities in Brazil monetising the anti-vax movement – podcast

    Source: The Conversation – UK – By Gemma Ware, Host, The Conversation Weekly Podcast, The Conversation

    A protest in Brazil against mandatory COVID vaccinations and vaccine passports. Isaac Fontana / Shutterstock.com

    Few places on earth are immune to the explosion of anti-vaccination conspiracy theories and health disinformation fuelled by the COVID pandemic. But in countries like Brazil, where the disinformation flowed from the very top of government, the problem is even more acute and some people are exploiting the fear of others to make money.

    In this episode of The Conversation Weekly, we hear about new research out of Brazil into how peddlers of disinformation on social media also sell fake cures and vaccine detoxes. And we ask why some people are looking for solutions to their health problems in these dangerous chemicals and unproven protocols.

    Brazil used to be a country with a strong culture of vaccination. “It was like a ritual”, remembers Igor Sacramento, a researcher in public health at the Oswaldo Cruz Foundation in Brazil. As a child, he would go to public squares where people would be dressed in costumes, parading, alongside the vaccination drives.

    Now, anti-vax disinformation has surged in the country. Sacramento believes the big change was the election of Jair Bolsonaro in 2018, a president who publicly questioned vaccinations. “It was terrible for public health”, he says. Research showed that during the pandemic there was a persistent “Bolsonaro effect” with higher death rates from COVID in pro-Bolsonaro municipalities.

    Vaccination rates for a number of different diseases have fallen in Brazil in recent years, although they are beginning to climb again since the election of Luiz Inácio Lula da Silva for a third term as president in 2023.

    Promoting fake cures

    New research led by Ergon Cugler, a researcher at  the Brazilian Institute of Information on Science and Technology who is mapping the spread of disinformation on social media in Latin America and the Caribbean, is showing that the same people sowing fear with health disinformation are also selling fake cures.

    Cugler scraped data from more than 1,000 Telegram groups linked to disinformation and conspiracy theories topics over the last decade. Of the 5 million users in these groups, half are in Brazil. His dataset of 61 million pieces of content showed a 290% increase in anti-vaccination conspiracy narratives during the pandemic in Brazil, as well as a 15,000% increase in autism-related disinformation in Latin America and the Caribbean since the pandemic.

    Admins on these conspiracy theory communities on Telegram often post adverts, testimonials and videos promoting fake cures, vaccine detoxes and falsified vaccination passports. Cugler says:

     They spread the feeling of fear suggesting that parasites, for example, could cause diseases like diabetes. And then they offer so-called miracle cures, like deworming protocols or chlorine dioxide, and other substances, and they monetise all of those products.

    Cugler is also tracking how conspiracy theory groups discussing seemingly quite unconnected topics can be used as a way to funnel people into anti-vax groups and sell them fake cures.

    Listen to the full episode of The Conversation Weekly podcast to hear interviews with Ergon Cugler and Igor Sacramento, plus a conversation with Daniel Stycer, editor of The Conversation Brazil.

    This episode of The Conversation Weekly was written and produced by Gemma Ware with assistance from Mend Mariwany. Mixing and sound design by Eloise Stevens and theme music by Neeta Sarl.

    Listen to The Conversation Weekly via any of the apps listed above, download it directly via our RSS feed or find out how else to listen here.

    Ergon Cugler has previously received a research grant from the Brazilian Institute of Information in Science and Technology (IBICT) and is currently part of a research project funded by the National Council for Scientific and Technological Development through the Observatory of Informational Disorder and Public Policy (DesinfoPop) at the Getulio Vargas Foundation. Igor Sacramento is a researcher in residence between December 2024 and July 2025 at the École des Hautes Études en Sciences Sociales in France.

    – ref. Fake cures and vaccine passports for sale: the conspiracy communities in Brazil monetising the anti-vax movement – podcast – https://theconversation.com/fake-cures-and-vaccine-passports-for-sale-the-conspiracy-communities-in-brazil-monetising-the-anti-vax-movement-podcast-255142

    MIL OSI – Global Reports –

    April 24, 2025

  • MIL-OSI United Kingdom: Career Insight: Joe, Trainee Solicitor, HM Revenue & Customs

    Source: United Kingdom – Executive Government & Departments

    Case study

    Career Insight: Joe, Trainee Solicitor, HM Revenue & Customs

    Joe provides an insight into his training within HMRC Legal Group

    I am a fourth seat trainee in HM Revenue & Customs (HMRC) Legal Group’s European and International Law advisory team. The team advises on, drafts and helps negotiate a range of international agreements, including Free-Trade Agreements and Double Taxation Treaties.

    I studied Philosophy and Politics as my undergraduate degree, focussing my studies on human rights and the regulation of transnational enterprises. I suspected that a career in law was the best opportunity apply these interests in practice; however, as a non-law graduate I was reluctant to immediately volunteer for the expense and stress of two more years of study in the form of the GDL and LPC. So, after graduating, I moved abroad to pursue a career playing and coaching rugby; the COVID-19 pandemic put paid to that ambition but provided me the opportunity to start an online law conversion.

     I applied for the role at HMRC as I thought that first-hand experience of the legislative process and regular precedent setting litigation would provide a great opportunity to develop my career as a solicitor; but also because the tax arena seemed to offer a lot of variety, encompassing my interests in both public law and commercial questions.

    All trainees start in litigation for their first year, though pupils spend 6 months of this seconded to Chambers. My first seat was in VAT litigation so after three years of intensive study, I arrived at HMRC braced for mountains of paperwork and long days of dense tax calculations. Instead, waiting on my desk were various packets of lentil-based snacks and the deceptively knotty legal question; are these crisps, or at least similar to crisps? I spent the seat thinking about other such questions, like what distinguishes cosmetic surgery from medical care. During this seat I visited the Supreme Court assisting a senior lawyer and saw my own case feature in national newspapers.

    For my second seat I applied for HMRC’s Enforcement and Illicit Finance litigation Team. The question for this team was less frequently whether someone owes tax, but how HMRC can actually collect it from them. My tasks ranged from advocating on HMRC’s behalf in the magistrates Court to instructing counsel at fast pace on High Court Proceedings, attending the Court of Appeal and working with international law enforcement to seize overseas assets.

     As a trainee you will get give your own cases to run as part of a cross-HMRC case team with tax and policy experts, so you can stretch yourself in an environment surrounded by expert lawyers and tax professionals, who are all very generous with their time. Your role is to co-ordinate this team and ask the right questions to tease the legal arguments out of your clients. In this respect the skills I developed playing teams sports were as important as my legal knowledge.  

    In your second year you move into an advisory team. In my first six months I worked on a mix of human rights and technical tax advice as part of the Personal Tax and Welfare team. I drafted my statutory instrument, which was a particular highlight, and fed into a major budget measure. It can feel like a drastic transition from the more adversarial world of litigation, but the training is extensive with HMRC running internal induction courses alongside the wider GLP offering.

    The advisory lawyers cover a wide variety of tasks, with my final seat feeling like an entirely new role.  I didn’t study EU or International Law as part of my law conversion, but having the lawyers who drafted the treaties sat next to you in the office is always a good starting point!

    Whilst the HMRC training contract will be of particular interest for anyone who wants a career in public law, I think it is really important to understand the breadth of the department’s work. There is regular precedent setting litigation with engages questions of employment and commercial law, and advisory teams that span the breadth of civil and criminal practice.

    Updates to this page

    Published 24 April 2025

    MIL OSI United Kingdom –

    April 24, 2025

  • MIL-OSI Asia-Pac: New Director General of the Bureau of Industrial Parks, MOEA, Mr. Chih-Ching Yang, outlines three core visions to drive park optimization and innovation.

    Source: Republic of China Taiwan

    The Bureau of Industrial Parks (BIP) under the Ministry of Economic Affairs (MOEA) held an inauguration and oath-taking ceremony for BIP’s new Director General on March 26. The ceremony was presided over by MOEA Vice Minister Chien-Hsin Lai, during which outgoing Acting Director General Chi-Chuan Liu handed over the official seal to incoming Director General Chih-Ching Yang. Director General Yang will continue to lead efforts in upgrading and transforming technology industrial parks and industrial parks, with a strong focus on sustainable operations and effective management.
    Director General Yang holds a master’s degree in business administration from the National Taiwan University of Science and Technology. He began his public service career at the grassroots level in industrial services. He has served as Division Director and Deputy Director General of the Industrial Development Bureau, Chief Secretary of the MOEA, and most recently as Director-General of the Industrial Development Administration. Known for his solid academic background, strong execution skills, and proactive leadership, Director General Yang has led the Industrial Development Administration team of MOEA’s renowned “steel battalion” in advancing key initiatives such as amendments to the Industrial Innovation Act, industrial value enhancement, medical supply preparedness during the pandemic, and the dual transformation toward smart and low-carbon development. He is widely recognized in the industry as a key force in promoting sustainable park development.
    The Bureau of Industrial Parks oversees 80 parks across Taiwan. Vice Minister Lai encouraged the bureau to continue pursuing three major tasks: providing high-quality industrial spaces to support the “Five Trusted Industries”; advancing the “Extraterritorial Equivalent to Domestic” policy to expand Taiwan’s industrial reach; and implementing the “Balanced Taiwan” strategy to deepen local industrial clusters, thereby accelerating economic policy implementation.
    Director General Yang stated that building on existing foundations, he will drive optimization and innovation in park development through three core visions:
    Smart – Promoting AI integration across industries
    Safe – Creating secure and high-quality investment environments
    Sustainable – Developing low-carbon, green, and sustainable parks
    He emphasized the importance of public-private collaboration, listening to industry voices, and leveraging government support resources to create industrial bases aligned with the needs of emerging technologies. These efforts aim to accelerate industrial development and ensure the long-term sustainability of the parks.

    Spokesman: Mr. Liu Chi-Chuan (Deputy Director General, BIP)
    Contact Number: 886-7-3613349, 0911363680
    Email: lcc12@bip.gov.tw

    Contact Person: Hsiao, Yi-Chen (Personnel Office, BIP)
    Contact Number: 886-7-3611212 ext. 639
    Email: hs0218@bip.gov.tw

    MIL OSI Asia Pacific News –

    April 24, 2025

  • MIL-Evening Report: Many experienced tradies don’t have formal qualifications. Could fast-tracked recognition ease the housing crisis?

    Source: The Conversation (Au and NZ) – By Pi-Shen Seet, Professor of Entrepreneurship and Innovation, Edith Cowan University

    Once again, housing affordability is at the forefront of an Australian federal election.

    Both major parties have put housing policies at the centre of their respective campaigns. But there are still concerns too little is being done to address supply.

    One of the biggest hurdles is an ongoing shortage of skilled tradespeople, and difficulties attracting new workers. The construction industry accounts for 9% of Australia’s workforce. Yet an estimated 35% of workers lack formal qualifications.

    On Wednesday, Labor announced an election promise to fast-track formal trade qualifications for about 6,000 experienced but unqualified tradies.

    The Advanced Entry Trades Training program would start in 2026 and cost A$78 million.

    This program should help address some of the skills shortages in the sector. But it will be a long time before these benefits begin flowing through the system. And Australia is still likely to fall short of the government’s ambitious new home targets.

    Recognising skills we already have

    The Advanced Entry Trades Training program is intended to partly bridge the gap in construction skills shortages through a process called “recognition of prior learning” – and by offering free training to fill any skill gaps.

    In principle, recognition of prior learning allows individuals with substantial and relevant industry experience to attain formal qualifications without lengthy training programs.

    A similar approach was adopted in the healthcare sector as an emergency response to the pandemic, to boost the number of qualified workers.

    For the construction industry, it will encompass workers currently in the industry who have not completed an apprenticeship, as well as skilled migrants in Australia whose abilities remain unverified.

    This process can improve pay and conditions for participants. But it can also potentially fast-track their entry into the qualified workforce, addressing immediate skills shortages.



    Read more:
    A grab bag of campaign housing policies. But will they fix the affordability crisis beyond the election?

    Will it work?

    Labor’s new initiative mirrors an existing program at the state level, the New South Wales government’s Trade Pathways for Experienced Workers Program.

    According to Labor, this program saw 1,200 students earn their qualifications in an average time of seven months (as opposed to several years).

    It’s important to note this includes trades from all sectors of the NSW economy. But it is much faster than the traditional process of skill recognition. The Parkinson Review of Australia’s migration system found this process can take up to 18 months for a skilled migrant and cost over $9,000.



    Read more:
    Australia has a new National Skills Agreement. What does this mean for vocational education?

    Increased housing supply? Not soon

    Combined with other initiatives such as incentive payments for construction apprentices, the new Advanced Entry Trades Training program should help address some skills shortages in the sector.

    Australia’s peak construction industry body, Master Builders Australia, praised the proposal, citing its own analysis suggesting for every new qualified tradie, an extra 2.4 homes can be built.

    Even with these initiatives, the sector will likely fall short of the 83,000 additional skilled tradespeople needed to meet the Albanese government’s target to build 1.2 million new homes over five years.

    And it may mainly solve a categorisation issue. Currently, only about 80% of employers in the construction sector in Australia require all job applicants to hold a formal qualification.

    Crucially, it doesn’t address the core problem of attracting higher numbers of suitable people to a very traditional industry and helping them finish their qualifications. Almost half of construction sector apprentices do not complete their training.

    Other challenges

    There are other challenges for recognition of prior learning schemes more broadly.

    Research into recognition of prior learning for construction sector apprentices suggests some Australian employers and training providers may be averse to fast-tracking training. About 64% of assessed apprentices had prior experience and skills, but only 30% had their training shortened.

    These issues are even more complex when considering accelerated pathways for skilled migrants from a range of countries. There are some significant, well-documented challenges in transferring or recognising vocational qualifications across international boundaries.

    More to be done

    The Advanced Entry Trades Training program may go some way to alleviating a skills shortage in construction. But it will only partially address the broader issues of supply.

    Australia’s vocational education and training systems are complex, making it difficult to predict the outcomes.

    The proposed program does not address the problem of rising construction material costs and shortages. This problem is worsened by the declining productivity of the housing construction sector, which has halved over the last 30 years.

    Declining productivity isn’t just down to skilled labour shortages. It has also been attributed to other factors such as complex planning approvals, limited innovation, and a predominance of small firms.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Many experienced tradies don’t have formal qualifications. Could fast-tracked recognition ease the housing crisis? – https://theconversation.com/many-experienced-tradies-dont-have-formal-qualifications-could-fast-tracked-recognition-ease-the-housing-crisis-255108

    MIL OSI Analysis – EveningReport.nz –

    April 24, 2025

  • MIL-OSI: Nokia Corporation Interim Report for Q1 2025

    Source: GlobeNewswire (MIL-OSI)

    Nokia Corporation

    Interim report
    24 April 2025 at 08:00 EEST

    Nokia Corporation Interim Report for Q1 2025

    Network Infrastructure delivers strong net sales growth to start 2025

    • Infinera acquisition completed during Q1, increasing Nokia’s scale in Optical Networks and with hyperscalers. Integration underway with many portfolio decisions already taken. Positive momentum with customers, with Q1 seeing strong order intake for Infinera driven by growth in hyperscalers.
    • Q1 net sales declined 3% y-o-y on a constant currency and portfolio basis (-1% reported) due to a challenging prior year comparison in Nokia Technologies. Network Infrastructure grew 11% on a constant currency and portfolio basis while Cloud and Network Services grew 8%. Mobile Networks grew 2%.
    • Comparable gross margin in Q1 decreased 820bps y-o-y to 42.3% (reported decreased 820bps to 41.5%), half of which is related to lower net sales in Nokia Technologies. It was also impacted by a contract settlement charge with net impact of EUR 120 million in Mobile Networks.
    • Q1 comparable operating margin decreased 990bps y-o-y to 3.6% (reported up 1 020bps to -1.1%), mainly due to lower gross margin and increased operating expenses resulting from targeted investments for long-term growth.
    • Q1 comparable diluted EPS for the period of EUR 0.03; reported diluted EPS for the period of EUR -0.01.
    • Q1 free cash flow of EUR 0.7 billion, net cash balance of EUR 3.0 billion.
    • Full year 2025 outlook unchanged with comparable operating profit of between EUR 1.9 billion and 2.4 billion and free cash flow conversion from comparable operating profit of between 50% and 80%.

    This is a summary of the Nokia Corporation Interim Report for Q1 2025 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group’s financial information as well as on Nokia’s outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. A video interview summarizing the key points of our Q1 results will also be published on the website. Investors should not solely rely on summaries of Nokia’s financial reports and should also review the complete reports with tables.

    JUSTIN HOTARD, PRESIDENT AND CEO, ON Q1 2025 RESULTS

    In the following quote, net sales growth rates are on a constant currency and portfolio basis.
    Since joining Nokia as President and CEO three weeks ago, I’ve had great engagements with some of our customers, partners and employees. I see great potential for Nokia, and my early focus is on capital allocation to ensure we both drive efficiency and invest sufficiently in the right growth segments for long-term value creation. I am impressed with our core technology base across our portfolio including in RAN and core as well as in IP, Optical and Fiber technologies. In speaking with customers, it is clear we play a critical role as a trusted partner operating their mobile and fixed networks and have the potential to expand our presence in hyperscale, enterprise and defense markets. Spending the time with our employees I’ve been excited by their innovative spirit, energy and drive to unlock Nokia’s full potential.

    Our first quarter financial performance saw a net sales decline of 3%. However, excluding the catch-up element of licensing deals signed in the prior year, sales grew 7%. Our operating margin declined year-on-year due to the challenging prior year comparison in Nokia Technologies and a one-time charge in Mobile Networks, while profitability improved in both Network Infrastructure and Cloud and Network Services.

    Network Infrastructure net sales grew 11% with all units contributing to growth and its backlog increased. The highlight of the first quarter was the completion of the Infinera acquisition. Our expanded Optical Networks business had a strong first quarter with 15% net sales growth along with several important design wins, particularly with hyperscalers. We have initiated the integration of Infinera and made many important roadmap decisions which we communicated to customers in early April. We are on track to deliver our synergy targets and I believe this acquisition has significant value creation potential for Nokia.

    In Mobile Networks we continue to see positive signs of stabilization with further wins in addition to those we discussed last quarter. Today we have announced an important contract extension with T-Mobile US. Regarding our financial performance, net sales grew 2% but profitability was impacted by an unexpected one-time contract settlement with a net impact of EUR 120 million. The settlement related to a project for a single customer that started shipping in 2019 and the settlement fully resolves the situation.

    Cloud and Network Services delivered net sales growth of 8% and we continue to see strong demand in the market for our 5G Core offers with additional footprint won at AT&T, Boost Mobile, Ooredoo Qatar and Telefónica. Nokia Technologies continued its execution with further deals signed in the quarter that increased the contracted annual net sales run-rate to approximately EUR 1.4 billion.

    Looking forward, we are not immune to the rapidly evolving global trade landscape however based on early customer feedback, I believe our markets should prove to be relatively resilient. In 2025, we continue to expect strong net sales growth in Network Infrastructure, growth in Cloud and Network Services and largely stable net sales for Mobile Networks. In Nokia Technologies we expect approximately EUR 1.1 billion of operating profit.

    Regarding the tariff situation, there could be some short-term disruption. We will continue to utilize the flexibility of our global manufacturing network to minimize impact of the evolving tariff landscape. Based on what we see today, we currently expect a EUR 20 to 30 million impact to our comparable operating profit in the second quarter from the current tariffs. Given the lack of visibility, we have not taken an assumption related to tariffs in the second half of 2025.

    In terms of our outlook for the financial year 2025, we will continue to focus on investing in future growth opportunities and we now have an unexpected charge impacting Mobile Networks. Considering these factors, while achieving the top-end of the range will now be more challenging, our comparable operating profit guidance remains between EUR 1.9 and 2.4 billion. Our free cash flow guidance remains between 50% and 80% of comparable operating profit.

    In the coming months I will continue to listen and learn from customers, employees, shareholders and other stakeholders. I will provide an update with our Q2 results and I look forward to presenting our complete value creation vision for Nokia at our capital markets day which we now expect to hold in November.

    Justin Hotard
    President and CEO

    FINANCIAL RESULTS

    EUR million (except for EPS in EUR) Q1’25 Q1’24 YoY change
    Reported results      
    Net sales 4 390 4 444 (1)%
    Gross margin % 41.5% 49.7% (820)bps
    Research and development expenses (1 145) (1 125) 2%
    Selling, general and administrative expenses (728) (693) 5%
    Operating (loss)/profit (48) 405 (112)%
    Operating margin % (1.1)% 9.1% (1 020)bps
    (Loss)/profit from continuing operations (60) 451  
    Profit/(loss) from discontinued operations — (13)  
    (Loss)/profit for the period (60) 438  
    EPS for the period, diluted (0.01) 0.08  
    Net cash and interest-bearing financial investments 2 988 5 137 (42)%
    Comparable results      
    Net sales 4 390 4 444 (1)%
    Constant currency and portfolio YoY change(1)             (3%)
    Gross margin % 42.3% 50.5% (820)bps
    Research and development expenses (1 115) (1 076) 4%
    Selling, general and administrative expenses (587) (584) 1%
    Operating profit 156 600 (74)%
    Operating margin % 3.6% 13.5% (990)bps
    Profit for the period 153 512 (70)%
    EPS for the period, diluted 0.03 0.09 (67)%
    Business group results Network
    Infrastructure    		 Mobile
    Networks    		 Cloud and Network Services Nokia
    Technologies    		 Group Common and Other
    EUR million Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24
    Net sales 1 722 1 439 1 729 1 682 567 546 369 757 4 23
    YoY change 20%   3%   4%   (51)%   (83)%  
    Constant currency and portfolio YoY change(1) 11%   2%   8%   (52)%   (83)%  
    Gross margin % 40.6% 40.8% 30.9% 40.9% 45.9% 39.4% 100.0% 100.0%    
    Operating profit/(loss) 135 85 (152) (32) 14 (37) 259 658 (99) (75)
    Operating margin % 7.8% 5.9% (8.8)% (1.9)% 2.5% (6.8)% 70.2% 86.9%    

    (1) This metric provides additional information on the growth of the business and adjusts for both currency impacts and portfolio changes. The full definition is provided in the Alternative performance measures section in Nokia Corporation Interim Report for Q1 2025.

    SHAREHOLDER DISTRIBUTION

    Dividend

    The Board of Directors proposes that the Annual General Meeting 2025 to be held on 29 April 2025 authorizes the Board to resolve on the distribution of an aggregate maximum of EUR 0.14 per share to be paid in respect of the financial year 2024. The authorization would be used to distribute dividend and/or assets from the reserve for invested unrestricted equity in four installments during the authorization period unless the Board decides otherwise for a justified reason. Subject to approval by the Annual General Meeting, the Board is expected to resolve on the amount and timing of each distribution so that the preliminary record and payment dates will be as set out in the Board’s proposal to the Annual General Meeting. Accordingly, the first expected record date would be 5 May 2025 and the expected payment date would be 12 May 2025. The actual dividend payment date outside Finland will be determined by the practices of the intermediary banks transferring the dividend payments.

    Share buyback program

    On 27 June 2024, Nokia announced its intention to acquire Infinera in a transaction that valued Infinera at US$1.7 billion equity value with up to 30% of the consideration to be paid in Nokia American depositary shares, depending on the elections of Infinera shareholders. To offset the dilution from the transaction to Nokia shareholders, on 22 November 2024 Nokia announced a share buyback program targeting to repurchase 150 million shares. This share buyback program was completed on 2 April 2025. Under this program, Nokia repurchased 150 million of its own shares at an average price per share of approximately EUR 4.69. The repurchases reduced the company’s unrestricted equity by approximately EUR 703 million and the repurchased shares were cancelled on 23 April 2025.

    OUTLOOK

    The outlook provided below reflects the acquisition of Infinera.

      Full Year 2025
    Comparable operating profit(1) EUR 1.9 billion to EUR 2.4 billion
    Free cash flow(1) 50% to 80% conversion from comparable operating profit

    1Please refer to Alternative performance measures section in Nokia Corporation Interim Report for Q1 2025 for a full explanation of how these terms are defined.

    The outlook and all of the underlying outlook assumptions described below are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this report.

    Along with Nokia’s official outlook targets provided above, Nokia provides the below additional assumptions that support the group level financial outlook.

      Full year 2025 Comment
    Group Common and Other operating expenses approximately EUR 400 million  
    Comparable financial income and expenses Positive EUR 50 to 150 million  
    Comparable income tax rate ~25%  
    Cash outflows related to income taxes EUR 500 million (update) Mainly reflecting evolving regional mix and the inclusion of Infinera
    Capital Expenditures EUR 650 million (update) Reflecting the inclusion of Infinera
    Recurring gross cost savings EUR 400 million Related to ongoing cost savings program and not including Infinera-related synergies
    Restructuring and associated charges related to cost savings programs EUR 250 million Related to ongoing cost savings program and not including Infinera-related synergies
    Restructuring and associated cash outflows EUR 400 million Related to ongoing cost savings program and not including Infinera-related synergies

    ADDITIONAL TOPICS

    Completion of Infinera acquisition

    On 28 February 2025, Nokia announced the completion of the acquisition of Infinera Corporation, pursuant to the definitive agreement announced on 27 June 2024. Infinera, the San Jose based global supplier of innovative open optical networking solutions and advanced optical semiconductors, has become part of the Nokia group effective as of the closing with Nokia holding 100% of its equity and voting rights. The total purchase consideration was EUR 2.5 billion, consisting of cash proceeds, Nokia shares in the form of American Depositary Shares, the fair value of the portion of Infinera’s performance and restricted shares attributable to pre-combination services that were replaced with Nokia’s share-based payment awards and the fair value of Infinera’s convertible senior notes in line with relevant bond indentures. For more information regarding the acquisition, refer to Note 3. Acquisitions in Nokia Corporation Interim Report for Q1 2025.

    “Constant currency and portfolio net sales growth” alternative performance metric

    In Q1 2025, Nokia has introduced a new alternative performance metric (APM), “constant currency and portfolio net sales growth”. Constant currency and portfolio net sales growth is presented on a constant currency basis and also assumes certain specific acquisitions had already been owned during both periods and as if disposals had already occurred in both comparison periods. This has been added to mainly consider the acquisition of Infinera and is an evolution of the constant currency APM that had been previously used.

    RISK FACTORS

    Nokia and its businesses are exposed to a number of risks and uncertainties which include but are not limited to:

    • Competitive intensity, which is expected to continue at a high level as some competitors seek to take share;
    • Changes in customer network investments related to their ability to monetize the network;
    • Our ability to ensure competitiveness of our product roadmaps and costs through additional R&D investments;
    • Our ability to procure certain standard components and the costs thereof, such as semiconductors;
    • Disturbance in the global supply chain;
    • Impact of inflation, increased global macro-uncertainty, major currency fluctuations, changes in tariffs and higher interest rates;
    • Potential economic impact and disruption of global pandemics;
    • War or other geopolitical conflicts, disruptions and potential costs thereof;
    • Other macroeconomic, industry and competitive developments;
    • Timing and value of new, renewed and existing patent licensing agreements with licensees;
    • Results in brand and technology licensing; costs to protect and enforce our intellectual property rights; on-going litigation with respect to licensing and regulatory landscape for patent licensing;
    • The outcomes of on-going and potential disputes and litigation;
    • Our ability to execute, complete, successfully integrate and realize the expected benefits from transactions;
    • Timing of completions and acceptances of certain projects;
    • Our product and regional mix;
    • Uncertainty in forecasting income tax expenses and cash outflows, over the long-term, as they are also subject to possible changes due to business mix, the timing of patent licensing cash flow and changes in tax legislation, including potential tax reforms in various countries and OECD initiatives;
    • Our ability to utilize our Finnish deferred tax assets and their recognition on our balance sheet;
    • Our ability to meet our sustainability and other ESG targets, including our targets relating to greenhouse gas emissions;

    as well the risk factors specified under Forward-looking statements of this release, and our 2024 annual report on Form 20-F published on 13 March 2025 under Operating and financial review and prospects-Risk factors.

    FORWARD-LOOKING STATEMENTS

    Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia’s current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, product launches, growth management, licenses, sustainability and other ESG targets, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of potential global pandemics, geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including “anticipate”, “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, “see”, “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above.

    ANALYST WEBCAST

    • Nokia’s webcast will begin on 24 April 2025 at 11.30 a.m. Finnish time (EEST). The webcast will last approximately 60 minutes.
    • The webcast will be a presentation followed by a Q&A session. Presentation slides will be available for download at www.nokia.com/financials.
    • A link to the webcast will be available at www.nokia.com/financials.
    • Media representatives can listen in via the link, or alternatively call +1-412-317-5619.

    FINANCIAL CALENDAR

    • Nokia’s Annual General Meeting 2025 is planned to be held on 29 April 2025.
    • Nokia plans to publish its second quarter and half year 2025 results on 24 July 2025.
    • Nokia plans to publish its third quarter and January-September 2025 results on 23 October 2025.

    About Nokia

    At Nokia, we create technology that helps the world act together.

    As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs, which is celebrating 100 years of innovation.

    With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

    Inquiries:

    Nokia
    Communications
    Phone: +358 10 448 4900
    Email: press.services@nokia.com
    Maria Vaismaa, Global Head of External Communications

    Nokia

    Investor Relations
    Phone: +358 931 580 507
    Email: investor.relations@nokia.com

    Attachment

    • 2025 Q1 Nokia_ Earnings_release_English

    The MIL Network –

    April 24, 2025

  • MIL-OSI: STMicroelectronics Reports 2025 First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    PR No: C3332C 

    STMicroelectronics Reports 2025 First Quarter Financial Results

    • Q1 net revenues $2.52 billion; gross margin 33.4%; operating income $3 million; net income $56 million
    • Business outlook at mid-point: Q2 net revenues of $2.71 billion and gross margin of 33.4%
    • Company-wide program to reshape manufacturing footprint and resize global cost base on track; annual cost savings target in the high triple-digit million-dollar range exiting 2027 confirmed.

    Geneva, April 24, 2025 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 29, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

    ST reported first quarter net revenues of $2.52 billion, gross margin of 33.4%, operating income of $3 million and net income of $56 million or $0.06 diluted earnings per share.

    Jean-Marc Chery, ST President & CEO, commented:

    • “Q1 net revenues came in line with the midpoint of our business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix.”
    • “On a year-over-year basis, Q1 net revenues decreased 27.3%, operating margin decreased to 0.1% from 15.9% and net income decreased 89.1% to $56 million.”
    • “In the first quarter, our book-to-bill ratio improved with both Automotive and Industrial above parity.”
    • “Our second quarter business outlook, at the mid-point, is for net revenues of $2.71 billion, decreasing year-over-year by 16.2% and increasing sequentially by 7.7%; gross margin is expected to be about 33.4%, impacted by about 420 basis points of unused capacity charges.”
    • “We plan to maintain our Net Capex (non-U.S. GAAP1) plan for 2025 between $2.0 billion and $2.3 billion mainly to execute the reshaping of our manufacturing footprint.”
    • “While we see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio, focus on advanced manufacturing and tightly manage our costs. In this respect our company-wide program to reshape ST manufacturing footprint and resize our global cost base is on track and we confirm the annual cost savings target in the high triple-digit million-dollar range exiting 2027.”

    Quarterly Financial Summary

    U.S. GAAP
    (US$ m, except per share data)    		 Q1 2025 Q4 2024 Q1 2024 Q/Q Y/Y
    Net Revenues $2,517 $3,321 $3,465 -24.2% -27.3%
    Gross Profit $841 $1,253 $1,444 -32.9% -41.7%
    Gross Margin 33.4% 37.7% 41.7% -430 bps -830 bps
    Operating Income $3 $369 $551 -99.2% -99.5%
    Operating Margin 0.1% 11.1% 15.9% -1,100 bps -1,580 bps
    Net Income $56 $341 $513 -83.6% -89.1%
    Diluted Earnings Per Share $0.06 $0.37 $0.54 -83.8% -88.9%

    First Quarter 2025 Summary Review
    ST made some adjustments to its segment reporting effective starting January 1, 2025. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.

    Net Revenues by Reportable Segment2 (US$ m) Q1 2025 Q4 2024 Q1 2024 Q/Q Y/Y
    Analog products, MEMS and Sensors (AM&S) segment 1,069 1,348 1,406 -20.7% -23.9%
    Power and discrete products (P&D) segment 397 602 631 -34.1% -37.1%
    Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,466 1,950 2,037 -24.8% -28.0%
    Embedded Processing (EMP) segment 742 1,002 1,047 -26.0% -29.1%
    RF & Optical Communications (RF&OC) segment 306 366 378 -16.5% -19.2%
    Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,048 1,368 1,425 -23.4% -26.5%
    Others 3 3 3 – –
    Total Net Revenues $2,517 $3,321 $3,465 -24.2% -27.3%

    Net revenues totaled $2.52 billion, representing a year-over-year decrease of 27.3%. Year-over-year net sales to OEMs and Distribution decreased 25.7% and 31.2%, respectively. On a sequential basis, net revenues decreased 24.2%, 20 basis points better than the mid-point of ST’s guidance.

    Gross profit totaled $841 million, representing a year-over-year decrease of 41.7%. Gross margin of 33.4%, 40 basis points below the mid-point of ST’s guidance, decreased 830 basis points year-over-year, mainly due to product mix and, to a lesser extent, higher unused capacity charges and lower sales price.

    Operating income decreased 99.5% to $3 million, compared to $551 million in the year-ago quarter. ST’s operating margin decreased 1,580 basis points on a year-over-year basis to 0.1% of net revenues, compared to 15.9% in the first quarter of 2024. Excluding Impairment, restructuring charges and other related phase-out costs3, operating income stood at $11 million in the first quarter.

    By reportable segment, compared with the year-ago quarter:

    In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:

    Analog products, MEMS and Sensors (AM&S) segment:

    • Revenue decreased 23.9% mainly due to a decrease in Analog.   
    • Operating profit decreased by 66.7% to $82 million. Operating margin was 7.7% compared to 17.5%.

    Power and Discrete products (P&D) segment:

    • Revenue decreased 37.1%.
    • Operating profit decreased from a positive $77 million to a negative $28 million. Operating margin was -6.9% compared to 12.1%.

    In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:

    Embedded Processing (EMP) segment:

    • Revenue decreased 29.1% mainly due to a decrease in GPAM.
    • Operating profit decreased by 71.5% to $66 million. Operating margin was 8.9% compared to 22.2%.

    RF & Optical Communications (RF&OC) segment:

    • Revenue decreased 19.2%.
    • Operating profit decreased by 59.0% to $43 million. Operating margin was 13.9% compared to 27.4%.

    Net income and diluted Earnings Per Share decreased to $56 million and $0.06 respectively compared to $513 million and $0.54 respectively in the year-ago quarter. Excluding Impairment, restructuring charges and other related phase-out costs net of the relevant tax impact, Net income and diluted Earnings Per Share2 stood at $63 million and $0.07 respectively in the first quarter of 2025.

    Cash Flow and Balance Sheet Highlights

            Trailing 12 Months
    (US$ m) Q1 2025 Q4 2024 Q1 2024 Q1 2025 Q1 2024 TTM Change
    Net cash from operating activities 574 681 859 2,680 5,531 – 51.5%
    Free cash flow (non-U.S. GAAP1) 30 128 (134) 453 1,434 – 68.4%

    Net cash from operating activities was $574 million in the first quarter compared to $859 million in the year-ago quarter.

    Net Capex (non-U.S. GAAP), was $530 million in the first quarter compared to $967 million in the year-ago quarter.

    Free cash flow (non-U.S. GAAP) was positive at $30 million in the first quarter, compared to negative $134 million in the year-ago quarter.

    Inventory at the end of the first quarter was $3.01 billion, compared to $2.79 billion in the previous quarter and $2.69 billion in the year-ago quarter. Days sales of inventory at quarter-end was 167 days, compared to 122 days for both the previous quarter and the year-ago quarter.

    In the first quarter, ST paid cash dividends to its stockholders totaling $72 million and executed a $92 million share buy-back, as part of its current share repurchase program.

    ST’s net financial position (non-U.S. GAAP4) remained strong at $3.08 billion as of March 29, 2025, compared to $3.23 billion as of December 31, 2024 and reflected total liquidity of $5.96 billion and total financial debt of $2.88 billion. Adjusted net financial position (non-U.S. GAAP1), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.71 billion as of March 29, 2025.

    Corporate developments

    On April 10, 2025, ST detailed its company-wide program to reshape manufacturing footprint and resize global cost base and confirmed the annual cost savings target in the high triple-digit million-dollar range exiting 2027. Specifically, ST disclosed further elements of its program to reshape its global manufacturing footprint.

    Business Outlook

    ST’s guidance, at the mid-point, for the 2025 second quarter is:

    • Net revenues are expected to be $2.71 billion, an increase of 7.7% sequentially, plus or minus 350 basis points.
    • Gross margin of 33.4%, plus or minus 200 basis points.
    • This outlook is based on an assumed effective currency exchange rate of approximately $1.08 = €1.00 for the 2025 second quarter and includes the impact of existing hedging contracts.
    • The second quarter will close on June 28, 2025.

    This business outlook does not include any impact for potential further changes to global trade tariffs compared to the current situation.

    Conference Call and Webcast Information

    ST will conduct a conference call with analysts, investors and reporters to discuss its first quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST’s website, https://investors.st.com, and will be available for replay until May 9, 2025.

    Use of Supplemental Non-U.S. GAAP Financial Information

    This press release contains supplemental non-U.S. GAAP financial information.

    Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST’s consolidated financial statements prepared in accordance with U.S. GAAP.

    See the Appendix of this press release for a reconciliation of ST’s non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.

    Forward-looking Information

    Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors: 

    • changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and adversely impact the demand for our products;
    • uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products;
    • customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all;
    • the ability to design, manufacture and sell innovative products in a rapidly changing technological environment;
    • changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities;
    • unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding;
    • financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
    • the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers;
    • availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation);
    • the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology;
    • theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation;
    • the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
    • changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
    • variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
    • the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
    • product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;
    • natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate;
    • increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027;
    • epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results;
    • industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers;
    • the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and
    • individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.

    Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.

    Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.

    Unfavorable changes in the above or other factors listed under “Item 3. Key Information — Risk Factors” from time to time in our Securities and Exchange Commission (“SEC”) filings, could have a material adverse effect on our business and/or financial condition.

    About STMicroelectronics

    At ST, we are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at www.st.com.

    For further information, please contact:

    INVESTOR RELATIONS:
    Jérôme Ramel
    EVP Corporate Development & Integrated External Communication
    Tel: +41 22 929 59 20
    jerome.ramel@st.com

    MEDIA RELATIONS:
    Alexis Breton
    Group VP Corporate External Communications
    Tel: + 33 6 59 16 79 08
    alexis.breton@st.com

    STMicroelectronics N.V.      
    CONSOLIDATED STATEMENTS OF INCOME      
    (in millions of U.S. dollars, except per share data ($))      
           
      Three months ended  
      March 29, March 30,  
      2025 2024  
      (Unaudited) (Unaudited)  
           
    Net sales 2,513 3,444  
    Other revenues 4 21  
    NET REVENUES 2,517 3,465  
    Cost of sales (1,676) (2,021)  
    GROSS PROFIT 841 1,444  
    Selling, general and administrative expenses (390) (425)  
    Research and development expenses (489) (528)  
    Other income and expenses, net 49 60  
    Impairment, restructuring charges and other related phase-out costs (8) –  
    Total operating expenses (838) (893)  
    OPERATING INCOME 3 551  
    Interest income, net 48 59  
    Other components of pension benefit costs (4) (4)  
    Gain (loss) on financial instruments, net 25 –  
    INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 72 606  
    Income tax expense (13) (92)  
    NET INCOME 59 514  
    Net income attributable to noncontrolling interest (3) (1)  
    NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 56 513  
           
    EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.06 0.57  
    EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.06 0.54  
           
    NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 933.6 942.3  
           
           
    STMicroelectronics N.V.      
    CONSOLIDATED BALANCE SHEETS      
    As at March 29, December 31, March 30,
    In millions of U.S. dollars 2025 2024 2024
      (Unaudited) (Audited) (Unaudited)
    ASSETS      
    Current assets:      
    Cash and cash equivalents 1,781 2,282 3,133
    Short-term deposits 1,650 1,450 1,226
    Marketable securities 2,528 2,452 1,880
    Trade accounts receivable, net 1,385 1,749 1,787
    Inventories 3,014 2,794 2,685
    Other current assets 1,050 1,007 1,183
    Total current assets 11,408 11,734 11,894
    Goodwill 299 290 298
    Other intangible assets, net 338 346 366
    Property, plant and equipment, net 11,178 10,877 10,866
    Non-current deferred tax assets 490 464 585
    Long-term investments 96 71 22
    Other non-current assets 1,114 961 942
      13,515 13,009 13,079
    Total assets 24,923 24,743 24,973
           
    LIABILITIES AND EQUITY      
    Current liabilities:      
    Short-term debt 988 990 238
    Trade accounts payable 1,373 1,323 1,642
    Other payables and accrued liabilities 1,290 1,306 1,547
    Dividends payable to stockholders 16 88 6
    Accrued income tax 72 66 133
    Total current liabilities 3,739 3,773 3,566
    Long-term debt 1,889 1,963 2,875
    Post-employment benefit obligations 392 377 372
    Long-term deferred tax liabilities 48 47 49
    Other long-term liabilities 896 904 912
      3,225 3,291 4,208
    Total liabilities 6,964 7,064 7,774
    Commitment and contingencies      
    Equity      
    Parent company stockholders’ equity      
    Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 911,281,920 shares issued, 894,410,472 shares outstanding as of March 29, 2025) 1,157 1,157 1,157
    Additional Paid-in Capital 3,142 3,088 2,931
    Retained earnings 13,514 13,459 12,982
    Accumulated other comprehensive income 495 236 468
    Treasury stock (582) (491) (463)
    Total parent company stockholders’ equity 17,726 17,449 17,075
    Noncontrolling interest 233 230 124
    Total equity 17,959 17,679 17,199
    Total liabilities and equity 24,923 24,743 24,973
           
           
           
    STMicroelectronics N.V.      
           
    SELECTED CASH FLOW DATA      
           
    Cash Flow Data (in US$ millions) Q1 2025 Q4 2024 Q1 2024
           
    Net Cash from operating activities 574 681 859
    Net Cash used in investing activities (796) (1,259) (1,254)
    Net Cash from (used in) financing activities (282) (209) 308
    Net Cash decrease (501) (795) (89)
           
    Selected Cash Flow Data (in US$ millions) Q1 2025 Q4 2024 Q1 2024
           
    Depreciation & amortization 428 451 430
    Net payment for Capital expenditures (538) (501) (994)
    Dividends paid to stockholders (72) (88) (48)
    Change in inventories, net (172) (2) (12)
           

    Appendix
    ST
    Changes to reportable segments

    Following ST’s reorganization announced in January 2024 into two Product Groups and four reportable segments, we have made further progress in analyzing our global product portfolio, resulting in the following adjustments to our segments, effective starting January 1, 2025, without modifying subtotals at Product Group level: 

    • In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
      • The transfer of VIPower products from Power and Discrete products (“P&D”) reportable segment to Analog products, MEMS and Sensors (“AM&S”) reportable segment.    
    • In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
      • the newly created ‘Embedded Processing’ (“EMP”) reportable segment includes the former ‘MCU’ segment (excluding the RF ASICs mentioned below) as well as Custom Processing products (Automotive ADAS products).
      • the newly created ‘RF & Optical Communications’ (“RF&OC”) reportable segment includes the former ‘D&RF’ segment (excluding Automotive ADAS products) as well as some RF ASICs which were previously part of the former ‘MCU’ segment.

    We believe these adjustments are critical for implementing synergies and optimizing resources, which are necessary to fully deliver the benefits expected from our new organization.

    Our four reportable segments – within each Product Group – are now as follows: 

    • In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
      • Analog products, MEMS and Sensors (“AM&S”) reportable segment, comprised of ST analog products (now including VIPower products), MEMS sensors and actuators, and optical sensing solutions.
      • Power and Discrete products (“P&D”) reportable segment, comprised of discrete and power transistor products (now excluding VIPower products).

    In this Press Release, “Analog” refers to analog products, “MEMS” to MEMS sensors and actuators and “Imaging” to optical sensing solutions.

    • In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
      • Embedded Processing (“EMP”) reportable segment, comprised of general-purpose and automotive microcontrollers, connected security products and Custom Processing Products (Automotive ADAS)
      • RF & Optical Communications (“RF&OC”) reportable segment, comprised of Space, Ranging & Connectivity products, Digital Audio & Signaling Solutions and Optical & RF COT.

    In this Press release, “GPAM” refers to General purpose & automotive microcontrollers, “Connected Security” to connected security products, “Custom Processing” to automotive ADAS products.

    Prior year comparative periods have been adjusted accordingly.

    (Appendix – continued)
    ST Supplemental Financial Information

      Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
    Net Revenues By Market Channel (%)          
    Total OEM 71% 73% 76% 73% 70%
    Distribution 29% 27% 24% 27% 30%
               
    €/$ Effective Rate 1.06 1.09 1.08 1.08 1.09
               
    Reportable Segment Data (US$ m)          
    Analog products, MEMS and Sensors (AM&S) segment          
    – Net Revenues 1,069 1,348 1,340 1,336 1,406
    – Operating Income 82 220 216 193 246
    Power and Discrete products (P&D) segment          
    – Net Revenues 397 602 652 576 631
    – Operating Income (28) 45 80 61 77
    Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group          
    – Net Revenues 1,466 1,950 1,992 1,912 2,037
    – Operating Income 54 265 296 254 323
    Embedded Processing (EMP) segment          
    – Net Revenues 742 1,002 898 906 1,047
    – Operating Income 66 181 146 126 232
    RF & Optical Communications (RF&OC) segment          
    – Net Revenues 306 366 357 410 378
    – Operating Income 43 95 84 96 103
    Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group          
    – Net Revenues 1,048 1,368 1,255 1,316 1,425
    – Operating Income 109 276 230 222 335
    Others (a)          
    – Net Revenues 3 3 4 4 3
    – Operating Income (Loss) (160) (172) (145) (101) (107)
    Total          
    – Net Revenues 2,517 3,321 3,251 3,232 3,465
    – Operating Income 3 369 381 375 551

    (a)   Net revenues of Others include revenues from sales assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment and restructuring charges, management reorganization costs, start-up and phase out costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, as well as operating earnings of other products. Others includes:

    (US$ m) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
    Unused capacity charges 123 118 104 84 63

    (Appendix – continued)
    ST Supplemental Non-U.S. GAAP Financial Information
    U.S. GAAP – Non-U.S. GAAP Reconciliation

    The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.

    ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST’s U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST’s on-going operating results, (ii) the ability to better identify trends in ST’s business and perform related trend analysis, and (iii) to facilitate a comparison of ST’s results of operations against investor and analyst financial models and valuations, which may exclude these items.

    Non-U.S. GAAP Net Earnings and Non-U.S. GAAP Earnings Per Share (non-U.S. GAAP measures)

    Operating income before impairment and restructuring charges and one-time items is used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items, such as impairment, restructuring charges and other related phase-out costs. Adjusted net earnings and earnings per share (EPS) are used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items like impairment, restructuring charges and other related phase-out costs attributable to ST and other one-time items, net of the relevant tax impact.

    Q1 2025
    (US$ m, except per share data)    		 Gross Profit Operating Income Net Earnings Corresponding Diluted EPS
    U.S. GAAP 841 3 56 0.06
    Impairment, restructuring charges and other related phase-out costs – 8 8 0.01
    Estimated income tax effect – – (1) –
    Non-U.S. GAAP 841 11 63 0.07

    (Appendix – continued)

    Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures)

    Net Financial Position, a non-U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet.

    ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited.

    (US$ m) Mar 29
    2025    		 Dec 31
    2024    		 Sep 28
    2024    		 June 29
    2024    		 Mar 30
    2024
    Cash and cash equivalents 1,781 2,282 3,077 3,092 3,133
    Short term deposits 1,650 1,450 977 975 1,226
    Marketable securities 2,528 2,452 2,242 2,218 1,880
    Total liquidity 5,959 6,184 6,296 6,285 6,239
    Short-term debt (988) (990) (1,003) (236) (238)
    Long-term debt (a) (1,889) (1,963) (2,112) (2,850) (2,875)
    Total financial debt (2,877) (2,953) (3,115) (3,086) (3,113)
    Net Financial Position (non-U.S. GAAP) 3,082 3,231 3,181 3,199 3,126
    Advances received on capital grants (377) (385) (366) (402) (351)
    Adjusted Net Financial Position (non-U.S. GAAP) 2,705 2,846 2,815 2,797 2,775

    (a)  Long-term debt contains standard conditions but does not impose minimum financial ratios. Committed credit facilities for $618 million equivalent, are currently undrawn.

    (Appendix – continued)

    Net Capex and Free Cash Flow (non-U.S. GAAP measures)

    ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-U.S. GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period.

    Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period.

    ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies.

    (US$ m) Q1
    2025    		 Q4
    2024    		 Q3
    2024    		 Q2
    2024    		 Q1
    2024
    Payment for purchase of tangible assets, as reported (587) (584) (669) (690) (1,145)
    Proceeds from sale of tangible assets, as reported 2 – 2 1 2
    Proceeds from capital grants and other contributions, as reported 47 83 66 143 149
    Advances from capital grants allocated to property, plant and equipment 8 31 36 18 27
    Net Capex (non-U.S. GAAP) (530) (470) (565) (528) (967)

    Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.

    ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.

    Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies.

    (US$ m) Q1
    2025    		 Q4
    2024    		 Q3
    2024    		 Q2
    2024    		 Q1
    2024
    Net cash from operating activities 574 681 723 702 859
    Net Capex (530) (470) (565) (528) (967)
    Payment for purchase of intangible assets, net of proceeds from sale (14) (32) (20) (15) (26)
    Payment for purchase of financial assets, net of proceeds from sale – (51) (2) – –
    Free Cash Flow (non-U.S. GAAP) 30 128 136 159 (134)

    (Appendix – continued)
    Financial Calendar

    The financial calendar for 2025 is as follows:

    March 16, 2025 – April 24,2025: Quiet period
     

    April 24,2025:

    		  

    Q1 2025 Financial Results
     

    June 16, 2025 – July 24,2025:

    		  

    Quiet period
     

    July 24,2025:

    		  

    Q2 2025 Financial Results
     

    September 16, 2025 – October 23,2025:

    		  

    Quiet period
     

    October 23,2025:

    		  

    Q3 2025 Financial Results

    These dates are preliminary and are subject to final confirmation.

    1Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
    2See Appendix for the definition of reportable segments.
    3Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
    4Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.

    Attachment

    • C3332C -Q125 Earnings PR – April 24 2025

    The MIL Network –

    April 24, 2025

  • MIL-OSI: Euronet Worldwide Reports First Quarter 2025 Financial Results – Highlighted by 18% Operating Income Growth

    Source: GlobeNewswire (MIL-OSI)

    • Record first quarter results – revenue, operating income and adjusted EBITDA
    • Operating margin expansion of 80 basis points
    • Continued expansion of its leading cross-border payments network

    LEAWOOD, Kan., April 23, 2025 (GLOBE NEWSWIRE) — Euronet Worldwide, Inc. (“Euronet” or the “Company”) (NASDAQ: EEFT), a leading global financial technology solutions and payments provider, reports first quarter 2025 financial results.

    Euronet reports the following consolidated results for the first quarter 2025 compared with the same period of 2024:

    • Revenues of $915.5 million, a 7% increase from $857.0 million (9% increase on a constant currency1 basis).
    • Operating income of $75.2 million, an 18% increase from $64.0 million (22% increase on a constant currency basis).
    • Adjusted operating income2 of $75.2 million, an 18% increase from $63.6 million (23% increase on a constant currency basis).
    • Adjusted EBITDA3 of $118.7 million, a 9% increase from $108.8 million (12% increase on a constant currency basis).
    • Net income attributable to Euronet of $38.4 million, or $0.85 diluted earnings per share, compared with $26.2 million, or $0.55 diluted earnings per share.
    • Adjusted earnings per share4 of $1.13 ($1.33 excluding a one-time operating tax charge of $0.20 per share) compared to $1.28 ($1.13 excluding a one-time operating tax benefit of $0.15 per share).

    See the reconciliation of non-GAAP items in the attached financial schedules.  

    “I am pleased that we achieved double-digit constant currency growth in adjusted operating income and adjusted EBITDA, highlighted by an 18% increase in adjusted operating income over the prior year. All segments contributed to the strong earnings.  Moreover, the contribution of double-digit earnings growth reflects the strength of our strategic focus on our global payment network which concentrates on high value, digital payments complemented by cross-border transactions.  On an apples-to-apples basis our adjusted EPS of $1.33 increased 18% from $1.13 in the first quarter of 2024,” stated Michael J. Brown, Euronet’s Chairman and Chief Executive Officer. 

    “I would offer that we do not see any direct impacts on our business as a result of the recent United States’ tariff actions.  With a good start to the year together with our diversified global business, we are reaffirming our expectation to produce 12% to 16% earnings growth for the year,” continued Mr. Brown.

    Segment and Other Results

    The EFT Processing Segment reports the following results for the first quarter 2025 compared with the same period or date in 2024:

    • Revenues of $232.5 million, a 7% increase from $217.2 million (10% increase on a constant currency basis).
    • Operating income of $23.3 million, an 8% increase from $21.5 million (13% increase on a constant currency basis).
    • Adjusted Operating income of $23.3 million, a 10% increase from $21.1 million (15% increase on a constant currency basis).
    • Adjusted EBITDA of $47.6 million, a 6% increase from $44.7 million (10% increase on a constant currency basis).
    • Transactions of 3,463 million, a 38% increase from 2,502 million.
    • Total of 55,512 installed ATMs as of March 31, 2025, a 5% increase from 53,029. We operated 51,875 active ATMs as of March 31, 2025, a 5% increase from 49,290 as of March 31, 2024.

    Constant currency revenue, operating income, and adjusted EBITDA growth in the first quarter 2025 was driven by market expansion, growth across most existing markets and the addition of access fees and interchange fees in certain markets. 

    Moreover, the EFT Processing Segment launched operations in two additional countries — Dominican Republic and Peru.

    Transaction growth outpaced revenue growth due to continued growth in high-volume low-value transactions in India. 

    The epay Segment reports the following results for the first quarter 2025 compared with the same period or date in 2024:

    • Revenues of $267.4 million, a 4% increase from $257.1 million (8% increase on a constant currency basis).
    • Operating income of $26.8 million, a 1% increase from $26.6 million (5% increase on a constant currency basis).
    • Adjusted EBITDA of $28.4 million, consistent with prior year (5% increase on a constant currency basis).
    • Transactions of 1,134 million, a 19% increase from 953 million.
    • POS terminals of approximately 735,000 as of March 31, 2025, consistent with prior year.
    • Retailer locations of approximately 358,000 as of March 31, 2025, a 4% from 345,000.

    Constant currency revenue growth was driven by continued payments, digital media and mobile growth. Operating income and adjusted EBITDA growth did not keep pace with revenue growth due to the payment of $4.5 million to resolve a non-recurring, multi-year operating tax matter during the quarter. Excluding this item, adjusted operating income would have grown 22% over the first quarter 2024 – reflecting the benefit of revenue growth and effective expense management.

    epay’s transactions benefited as well from the continuation of strong growth in high-volume low-value transactions in India. 

    The Money Transfer Segment reports the following results for the first quarter 2025 compared with the same period or date in 2024:

    • Revenues of $417.7 million, a 9% increase from $384.6 million (10% increase on a constant currency basis).
    • Operating income of $45.1 million, a 21% increase from $37.2 million (23% increase on a constant currency basis).
    • Adjusted EBITDA of $51.3 million, a 15% increase from $44.5 million (17% increase on a constant currency basis).
    • Total transactions of 44.6 million, a 10% increase from 40.6 million.
    • Network locations of approximately 624,000 as of March 31, 2025, a 7% increase from approximately 583,000.

    Constant currency revenue growth was primarily driven by double-digit growth in cross-border transactions, partially offset by a decrease in intra-US transactions. Direct-to-consumer digital transactions grew by 31%, reflecting strong consumer demand for digital products. Operating income and Adjusted EBITDA growth outpaced revenue growth due to gross margin expansion, leverage of scale and effective expense management.

    Additionally, the Money Transfer segment continued to expand its industry leading global payments network to now reach 4.0 billion bank accounts, 3.2 billion wallet accounts and 624,000 payment locations.

    Corporate and Other reports $20.0 million of expense for the first quarter 2025 compared with $21.3 million for the first quarter 2024. The decrease in corporate expenses is largely from the decrease in long-term share-based compensation.

    Balance Sheet and Financial Position
    Unrestricted cash and cash equivalents on hand was $1,393.6 million as of March 31, 2025, compared to $1,278.8 million as of December 31, 2024. Total indebtedness was $2,202.5 million as of March 31, 2025, compared to $1,949.8 million as of December 31, 2024. Availability under the Company’s revolving credit facilities was approximately $623.1 million as of March 31, 2025. The change in net debt is the result of share repurchases, the repurchase of the convertible notes, and working capital fluctuations, partially offset by cash generated from operations.

    The Company repurchased 0.6 million shares for $59.6 million during the First quarter, which will improve earnings per share by 1% for future periods.

    During the quarter, Euronet repurchased $492 million of convertible notes.

    Non-GAAP Measures
    In addition to the results presented in accordance with U.S. GAAP, the Company presents non-GAAP financial measures, such as constant currency financial measures, operating income, adjusted EBITDA, and adjusted earnings per share. These measures should be used in addition to, and not a substitute for, revenues, operating income, net income and earnings per share computed in accordance with U.S. GAAP. We believe that these non-GAAP measures provide useful information to investors regarding the Company’s performance and overall results of operations. These non-GAAP measures are also an integral part of the Company’s internal reporting and performance assessment for executives and senior management. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. The attached schedules provide a full reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measure.

    The Company does not provide a reconciliation of its forward-looking non-GAAP measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP and the related GAAP and non-GAAP reconciliation, including adjustments that would be necessary for foreign currency exchange rate fluctuations and other charges reflected in the Company’s reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.  

    (1) Constant currency financial measures are computed as if foreign currency exchange rates did not change from the prior period. This information is provided to illustrate the impact of changes in foreign currency exchange rates on the Company’s results when compared to the prior period.

    (2) Adjusted operating income is defined as operating income excluding non-cash purchase accounting adjustments.  Adjusted operating income represents a performance measure and is not intended to represent a liquidity measure. 

    (3) Adjusted EBITDA is defined as net income excluding, to the extent incurred in the period, interest expense, income tax expense, depreciation, amortization, share-based compensation and other non-cash purchase accounting adjustment, non-operating or non-recurring items that are considered expenses or income under U.S. GAAP. Adjusted EBITDA represents a performance measure and is not intended to represent a liquidity measure.

    (4) Adjusted earnings per share is defined as diluted U.S. GAAP earnings per share excluding, to the extent incurred in the period, the tax-effected impacts of: a) foreign currency exchange gains or losses, b) share-based compensation, c) acquired intangible asset amortization, d) non-cash income tax expense, e) non-cash purchase accounting adjustment f) non-cash investment gain g) other non-operating or non-recurring items and h) dilutive shares relate to the Company’s convertible bonds. Adjusted earnings per share represents a performance measure and is not intended to represent a liquidity measure. 

    Conference Call and Slide Presentation
    Euronet Worldwide will host an analyst conference call on April 24, 2025, at 9:00 a.m. Eastern Time to discuss these results. The call may also include discussion of Company developments on the Company’s operations, forward-looking information, and other material information about business and financial matters. To listen to the call via telephone please register at Euronet Worldwide First Quarter 2025 Earnings Call. The conference call will also be available via webcast at http://ir.euronetworldwide.com. Participants should register at least five minutes prior to the scheduled start time of the event. A slideshow will be included in the webcast. A webcast replay will be available beginning approximately one hour after the event at  http://ir.euronetworldwide.com and will remain available for one year.

    About Euronet Worldwide, Inc.
    Starting in Central Europe in 1994 and growing to a global real-time digital and cash payments network with millions of touchpoints today, Euronet now moves money in all the ways consumers and businesses depend upon. This includes money transfers, credit/debit card processing, ATMs, POS services, branded payments, foreign currency exchange and more. With products and services in more than 200 countries and territories provided through its own brand and branded business segments, Euronet and its financial technologies and networks make participation in the global economy easier, faster and more secure for everyone. 

    A leading global financial technology solutions and payments provider, Euronet has developed an extensive global payments network that includes 55,512 installed ATMs, approximately 1,214,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 69 countries; card software solutions; a prepaid processing network of approximately 735,000 POS terminals at approximately 358,000 retailer locations in 64 countries; and a global money transfer network of approximately 624,000 locations serving – countries and territories. Euronet serves clients from its corporate headquarters in Leawood, Kansas, USA, and 67 worldwide offices. For more information, please visit the Company’s website at www.euronetworldwide.com.

    Statements contained in this news release that concern Euronet’s or its management’s intentions, expectations, or predictions of future performance, are forward-looking statements. Euronet’s actual results may vary materially from those anticipated in such forward-looking statements as a result of a number of factors, including: conditions in world financial markets and general economic conditions, including impacts from pandemics; inflation; the war in the Ukraine and the related economic sanctions and tariffs; military conflicts in the Middle East; our ability to successfully integrate any acquired operations; economic conditions in specific countries and regions; technological developments affecting the market for our products and services; our ability to successfully introduce new products and services; foreign currency exchange rate fluctuations; the effects of any breach of our computer systems or those of our customers or vendors, including our financial processing networks or those of other third parties; interruptions in any of our systems or those of our vendors or other third parties; our ability to renew existing contracts at profitable rates; changes in fees payable for transactions performed for cards bearing international logos or over switching networks such as card transactions on ATMs; our ability to comply with increasingly stringent regulatory requirements, including anti-money laundering, anti-terrorism, anti-bribery, consumer and data protection and privacy; changes in laws and regulations affecting our business, including tax and immigration laws and any laws regulating payments, including dynamic currency conversion transactions; changes in our relationships with, or in fees charged by, our business partners; competition; the outcome of claims and other loss contingencies affecting Euronet; the cost of borrowing (including fluctuations in interest rates), availability of credit and terms of and compliance with debt covenants; and renewal of sources of funding as they expire and the availability of replacement funding. These risks and other risks are described in the Company’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Copies of these filings may be obtained via the SEC’s Edgar website or by contacting the Company. Any forward-looking statements made in this release speak only as of the date of this release. Except as may be required by law, Euronet does not intend to update these forward-looking statements and undertakes no duty to any person to provide any such update under any circumstances. The Company regularly posts important information to the investor relations section of its website.  

     
     EURONET WORLDWIDE, INC.
     Condensed Consolidated Balance Sheets
     (in millions)
           
      As of    
      March 31,   As of
      2025   December 31,
      (unaudited)   2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 1,393.6   $ 1,278.8
    ATM cash 700.3   643.8
    Restricted cash 10.8   9.2
    Settlement assets 1,418.6   1,522.7
    Trade accounts receivable, net 330.5   284.9
    Prepaid expenses and other current assets 319.9   297.1
    Total current assets 4,173.7   4,036.5
           
    Property and equipment, net 337.4   329.7
    Right of use lease asset, net 146.1   132.1
    Goodwill and acquired intangible assets, net 1,070.9   1,048.1
    Other assets, net 325.4   288.1
    Total assets $ 6,053.5   $ 5,834.5
           
    LIABILITIES AND EQUITY      
    Current liabilities:      
    Settlement obligations $ 1,418.6   $ 1,522.7
    Accounts payable and other current liabilities 843.6   841.0
    Current portion of operating lease liabilities 50.8   48.3
    Short-term debt obligations 295.4   814.0
    Total current liabilities 2,608.4   3,226.0
           
    Debt obligations, net of current portion 1,906.0   1,134.4
    Operating lease liabilities, net of current portion 97.8   87.4
    Capital lease obligations, net of current portion 1.1   1.4
    Deferred income taxes 57.3   71.8
    Other long-term liabilities 81.2   84.3
    Total liabilities 4,751.8   4,605.3
    Equity 1,301.7   1,229.2
    Total liabilities and equity $ 6,053.5   $ 5,834.5
     EURONET WORLDWIDE, INC.
     Consolidated Statements of Operations
     (unaudited – in millions, except share and per share data)
           
       Three Months Ended
      March 31,
      2025   2024
           
    Revenues $ 915.5     $ 857.0  
           
    Operating expenses:      
    Direct operating costs 561.0     533.7  
    Salaries and benefits 164.1     154.7  
    Selling, general and administrative 83.0     71.9  
    Depreciation and amortization 32.2     32.7  
    Total operating expenses 840.3     793.0  
    Operating income 75.2     64.0  
           
    Other income (expense):      
    Interest income 5.3     5.7  
    Interest expense (19.4 )   (14.9 )
    Foreign currency exchange (loss) (18.1 )   (12.5 )
    Other income (expense) 2.5     (0.1 )
    Total other income (expense), net (29.7 )   (21.8 )
    Income before income taxes 45.5     42.2  
           
    Income tax expense (7.1 )   (16.0 )
           
    Net income 38.4     26.2  
    Net loss attributable to non-controlling interests —     —  
    Net income attributable to Euronet Worldwide, Inc. $ 38.4     $ 26.2  
    Add: Interest expense from assumed conversion of convertible notes, net of tax   1.0       0.9  
    Net income for diluted earnings per share calculation $ 39.4     $ 27.1  
    Earnings per share attributable to Euronet      
    Worldwide, Inc. stockholders – diluted $ 0.85     $ 0.55  
           
    Diluted weighted average shares outstanding 46,239,523     48,962,583  
           
     EURONET WORLDWIDE, INC.
    Reconciliation of Net Income to Operating Income (Expense) to Adjusted Operating Income (Expense) and Adjusted EBITDA
     (unaudited – in millions)
                       
      Three months ended March 31, 2025
                       
      EFT Processing   epay   Money Transfer   Corporate Services   Consolidated
                       
    Net income                 $ 38.4  
                       
    Add: Income tax expense                 7.1  
    Add: Total other expense, net                  29.7  
                       
    Operating income (expense)  $ 23.3     $ 26.8     $ 45.1     $ (20.0 )   $ 75.2  
    Add: Depreciation and amortization 24.3     1.6     6.1     0.2     32.2  
    Add: Share-based compensation  —     —     0.1     11.2     11.3  
    Earnings before interest, taxes, depreciation, amortization and share-based compensation (Adjusted EBITDA) $ 47.6     $ 28.4     $ 51.3     $ (8.6 )   $ 118.7  
                       
      Three months ended March 31, 2024
                       
      EFT Processing   epay   Money Transfer   Corporate Services   Consolidated
                       
    Net income                 $ 26.2  
                       
    Add: Income tax expense                  16.0  
    Add: Total other expense, net                 21.8  
                       
    Operating income (expense) $ 21.5     $ 26.6     $ 37.2     $ (21.3 )   $ 64.0  
    Less: Non-cash purchase accounting adjustment (0.4 )   —     —     —     (0.4 )
    Adjusted operating income (1) 21.1     26.6     37.2     (21.3 )   63.6  
    Add: Depreciation and amortization 23.6     1.7     7.3     0.1     32.7  
    Add: Share-based compensation —     —     —     12.5     12.5  
    Earnings before interest, taxes, depreciation, amortization and share-based compensation, non-cash purchase accounting adjustment (Adjusted EBITDA) $ 44.7     $ 28.3     $ 44.5     $ (8.7 )   $ 108.8  

    (1) Adjusted operating income and Adjusted EBITDA are non-GAAP measures that should be considered in addition to, and not a substitute for, net income computed in accordance with U.S. GAAP.

     
     EURONET WORLDWIDE, INC.
     Reconciliation of Adjusted Earnings per Share
     (unaudited – in millions, except share and per share data)
           
       Three Months Ended
      March 31,
      2025   2024
           
    Net income attributable to Euronet Worldwide, Inc. $ 38.4     $ 26.2  
           
     Foreign currency exchange loss 18.1     12.5  
     Intangible asset amortization(1) 4.5     5.5  
     Non-cash purchase accounting adjustment(2) —     (0.4 )
     Share-based compensation(3) 11.3     12.5  
     Income tax effect of above adjustments(4) —     0.6  
     Non-cash investment gain(5) (3.0 )   —  
     Non-cash GAAP tax expense (benefit)(6) (19.3 )   2.5  
           
     Adjusted earnings(7) $ 50.0     $ 59.4  
           
     Adjusted earnings per share – diluted(7) $ 1.13     $ 1.28  
           
    Diluted weighted average shares outstanding (GAAP)   46,239,523     48,962,583  
    Effect of adjusted EPS dilution of convertible notes   (2,347,536 )     (2,781,818 )
    Effect of unrecognized share-based compensation on diluted shares outstanding    371,757     355,219  
    Adjusted diluted weighted average shares outstanding   44,263,744     46,535,984  

    (1) Intangible asset amortization of $4.5 million and $5.5 million are included in depreciation and amortization expense of $32.2 million and $32.7 million for both the three months ended March 31, 2025 and March 31, 2024, in the consolidated statements of operations.

    (2) Non-cash purchase accounting expense adjustment of $0.4 million is included in operating income for the three months ended March 31, 2024, in the consolidated statement of operations.

    (3) Share-based compensation of $11.3 million and $12.5 million are included in salaries and benefits expense of $164.1 million and $154.7 million for the three months ended March 31, 2025 and March 31, 2024, respectively, in the consolidated statements of operations.

    (4) Adjustment is the aggregate U.S. GAAP income tax effect on the preceding adjustments determined by applying the applicable statutory U.S. federal, state and/or foreign income tax rates. 

    (5) Non-cash investment gain of $3.0 million is included in other income in the consolidated statement of operations.

    (6) Adjustment is the non-cash GAAP tax impact recognized on certain items such as the utilization of certain material net deferred tax assets and amortization of indefinite-lived intangible assets.

    (7) Adjusted earnings and adjusted earnings per share are non-GAAP measures that should be considered in addition to, and not as a substitute for, net income and earnings per share computed in accordance with U.S. GAAP. 

    The MIL Network –

    April 24, 2025

  • MIL-OSI USA: “Devastating Loss”: Senator Murray Slams Trump Gutting Women’s Health Initiative—WHI is the Largest and Most Influential National Study of Women’s Health & Based out of Fred Hutch in Seattle

    US Senate News:

    Source: United States Senator for Washington State Patty Murray
    ICYMI from Science: “NIH guts its first and largest study centered on women”
    ICYMI: In Senate Forum on NIH Research, Senator Murray Highlights How Trump and Elon’s Devastating Funding Cuts and Mass Layoffs are Putting Lifesaving Research At Risk
    Washington, D.C. — Today, U.S. Senator Patty Murray (D-WA), a senior member and former Chairof the Senate Health, Education, Labor, and Pensions (HELP) Committee and former Chair of the Senate Appropriations Labor-HHS-Education & Related Agencies Subcommittee released the following statement on the Trump administration gutting the historic Women’s Health Initiative (WHI), the largest National Institutes of Health (NIH) effort studying the health needs of women. WHI has enrolled more than 160,000 participants in clinical trials and tracked the health of many thousands more over more than three decades since its inception in the early 1990s. There are currently over 42,000 participants that are actively involved. WHI’s findings have had a major influence on women’s health care, reducing rates of cancer and other diseases, and influencing clinical guidelines for multiple health factors.
    Yesterday, WHI investigators were informed that the Department of Health and Human Services (HHS) will terminate WHI Regional Center (RC) contracts at the end of their current fiscal year, September 2025. According to the WHI Funding Announcement issued yesterday, the WHI Clinical Coordinating Center, which is based at the Fred Hutchinson Cancer Research Center in Seattle, will continue operations until January 2026, after which time its funding remains uncertain. “The full implications of these funding cuts are still being determined, but these contract terminations will significantly impact ongoing research and data collection—especially the detailed participant health event data collected by RC staff. The loss of this critical data stream would severely limit WHI’s ability to generate new insights into the health of older women, one of the fastest-growing segments of our population,” the notice read.
    “This is a devastating loss for women’s health research. It’s unacceptable and truly tragic that the Trump administration has decided to pull the plug on one of the most influential studies in the world and one that has led to enormous breakthroughs in preventing chronic disease—a stated goal of HHS leadership—and helping women everywhere live healthier and longer lives.
    “The Women’s Health Initiative has not only led to major advancements in our understanding of women’s health issues, especially in older women, but it has paved the way for a generation of researchers focused on women’s health—which has long been overlooked and underfunded. Now, Trump, Elon, and our pro-disease Health Secretary RFK Jr. are taking an axe to a study that has helped millions of Americans live healthier lives and have better treatment options—yet another example of how this administration is hell-bent on cutting health research to the bone without a clue and without a care for the consequences.
    “Destroying the Women’s Health Initiative is an unbelievably shortsighted move that will have an immense long-term cost for our country—in undiscovered treatments and cures, the loss of vast amounts of data to improve women’s health, and a less healthy population overall.
    “This is an unconscionable loss—and I am calling on every one of my colleagues, especially my Republican colleagues who understand the importance of supporting research into women’s health, to join me in demanding that the Trump administration immediately reverse course.”
    Senator Murray has been leading the charge against the Trump administration’s efforts to gut lifesaving research at NIH and fire en masse more than 1,300 skilled scientists and grants administrators at the agency. When the Trump administration attempted to illegally cap indirect cost rates at 15 percent, Senator Murray immediately and forcefully condemned the move, led the entire Senate Democratic caucus in a letter decrying the proposed change, and introduced amendments to Senate Republicans’ budget resolution to reverse it, which Republicans blocked.
    As a longtime appropriator and former Chair of the Senate HELP Committee, Senator Murray has always championed women’s health care and fought to boost investments in women’s health care research in particular. As the former Chair of the Senate Appropriations Labor-HHS-Education & Related Agencies Subcommittee, Senator Murray has fought for increases in women’s health research programs across NIH, including the Implementing a Maternal Health and Pregnancy Outcomes Vision for Everyone (IMPROVE) Initiative and the Office of Research on Women’s Health. As the top Democrat on the Senate HELP Committee, Murray led negotiations and passage of the 21st Century Cures Act in 2016, bipartisan legislation that provided $4.8 billion over the next 10 years to invests in a wide range of health priorities including with regards to women’s health care. Murray leads and has repeatedly introduced the Jeanette Acosta Invest in Women’s Health Act, which would increase women’s access to preventive and lifesaving cancer screenings. Murray has also been a strong advocate for women veterans’ health care—transforming the VA over decades to meet the needs of women veterans, whether by authoring and passing the Women Veterans Health Care Improvement Act in 2010, helping to pass the Deborah Sampson Act and MAMMO Act to address gender disparities at VA and expand access to breast cancer screening and treatment at VA, or by delivering annual funding as an appropriator to help VA provide the necessary care for women veterans.
    Last year as Chair of the Senate Appropriations Committee, Senator Murray delivered a record $900 million investment in women veterans’ health care, as well as a $300 million funding boost for NIH. Senator Murray also leads landmark bipartisan legislation endorsed by Halle Berry to boost menopause research and, for the first time, coordinate the federal government’s existing programs related to menopause and mid-life women’s health. Earlier this month, Senator Murray introduced separate bipartisan legislation to require VA and the Department of Defense (DoD) to research and study the effects of menopause on women servicemembers and women veterans
    Over her years as a senior member of the Appropriations Committee, Senator Murray secured billions of dollars in increases for biomedical research at the National Institutes of Health, and during her time as Chair of the HELP Committee, she established the new ARPA-H research agency as part of her PREVENT Pandemics Act to advance some of the most cutting-edge research in the field.

    MIL OSI USA News –

    April 24, 2025

  • MIL-OSI Asia-Pac: President Lai delivers remarks at International Holocaust Remembrance Day event

    Source: Republic of China Taiwan

    Details
    2025-04-23
    President Lai pays respects to Pope Francis  
    On the morning of April 23, President Lai Ching-te visited the Taipei Archdiocesan Curia to pay respects in a memorial ceremony for His Holiness Pope Francis. As officiant of the ceremony, President Lai burned incense and presented flowers, fruits, and wine to pay his respects to Pope Francis. At the direction of the master of ceremonies, the president then bowed three times in front of Pope Francis’s memorial portrait, conveying his grief and deep respect for the late pope. After hearing of Pope Francis’s passing on April 21, President Lai promptly requested the Ministry of Foreign Affairs to express sincere condolences from the people and government of Taiwan to the Vatican. The president also instructed Minister of Foreign Affairs Lin Chia-lung (林佳龍) to convey condolences to the Holy See’s Apostolic Nunciature in Taiwan.  

    Details
    2025-04-23
    President Lai meets US CNAS NextGen fellows
    On the morning of April 23, President Lai Ching-te met with fellows from the Shawn Brimley Next Generation National Security Leaders Program (NextGen) run by the Center for a New American Security (CNAS). In remarks, President Lai thanked the government of the United States for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. The president pointed out that we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US, and form a “Taiwan investment in the US team” to expand investment and bring about even closer Taiwan-US trade cooperation, allowing us to reduce the trade deficit and generate development that benefits both sides. A translation of President Lai’s remarks follows: Ms. Michèle Flournoy, chair of the CNAS Board of Directors, is a good friend of Taiwan, and she has made major contributions to Taiwan-US relations through her long-time efforts on various aspects of our cooperation. I am happy to welcome Chair Flournoy, who is once again leading a NextGen Fellowship delegation to Taiwan. CNAS is a prominent think tank focusing on US national security and defense policy based in Washington, DC. Its NextGen Fellowship has fostered talented individuals in the fields of national security and foreign affairs. This year’s delegation is significantly larger than those of the past, demonstrating the increased importance that the next generation of US leaders attach to Taiwan. On behalf of the people of Taiwan, I extend my sincerest welcome to you all. The Taiwan Strait, an issue of importance for our guests, has become a global issue. There is a high degree of international consensus that peace and stability across the Taiwan Strait are indispensable elements in global security and prosperity. Facing military threats from China, Taiwan proposed the Four Pillars of Peace action plan. First, we are actively implementing military reforms, enhancing whole-of-society defense resilience, and working to increase our defense budget to more than 3 percent of GDP. Second, we are strengthening our economic resilience. As Taiwan’s economy must keep advancing, we can no longer put all our eggs in one basket. We are taking action to remain firmly rooted in Taiwan while expanding our global presence and marketing worldwide. In these efforts, we are already seeing results. Third, we are standing side-by-side with other democratic countries to demonstrate the strength of deterrence and achieve our goal of peace through strength. And fourth, Taiwan is willing, under the principles of parity and dignity, to conduct exchanges and cooperate with China towards achieving peace and stability in the Taiwan Strait. This April 10 marked the 46th anniversary of the enactment of the Taiwan Relations Act. We thank the US government for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. We look forward to Taiwan and the US continuing to strengthen collaboration on the development of both our defense industries as well as the building of non-red supply chains. This will yield even more results and further deepen our economic and trade partnership. The US is now the main destination for outbound investment from Taiwan. Moving forward, we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US. And our government will form a “Taiwan investment in the US team” to expand investment. We hope this will bring Taiwan-US economic and trade cooperation even closer and, through mutually beneficial assistance, allow us to generate development that benefits both our sides while reducing our trade deficit. In closing, thank you once again for visiting Taiwan. We hope your trip is fruitful and leaves you with a deep impression of Taiwan. We also hope that going forward you continue supporting Taiwan and advancing even greater development for Taiwan-US ties.  Chair Flournoy then delivered remarks, first thanking President Lai for making time to receive their delegation. Referring to President Lai’s earlier remarks, she said that it is quite an impressive group, as past members of this program have gone on to become members of the US Congress, leading government experts, and leaders in the think-tank world and in the private sector. She remarked that investing in this group is a wonderful privilege for her and that they appreciate President Lai’s agreeing to take the time to engage in exchange with them. Chair Flournoy emphasized that they are visiting Taiwan at a critical moment, when there is so much change and volatility in the geostrategic environment, a lot of uncertainty, and a lot of unpredictability. She stated that given our shared values, our shared passion for democracy and human rights, and our shared interests in peace and stability in the Indo-Pacific region, this is an important time for dialogue, collaboration, and looking for additional opportunities where we can work together towards regional peace and stability.

    Details
    2025-04-18
    President Lai meets US delegation from Senate Foreign Relations Subcommittee on East Asia and the Pacific
    On the afternoon of April 18, President Lai Ching-te met with a delegation led by Senator Pete Ricketts, chairman of the United States Senate Foreign Relations Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy. In remarks, President Lai said we hope to promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US, to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation. The president said that by deepening cooperation, Taiwan and the US will be better positioned to work together on building non-red supply chains. He said a more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. A translation of President Lai’s remarks follows: I warmly welcome you all to Taiwan. I want to take this opportunity to especially thank Chairman Pete Ricketts and Ranking Member Chris Coons for their high regard and support for Taiwan. Chairman Ricketts has elected to visit Taiwan on his first overseas trip since taking up his new position in January. Ranking Member Coons made a dedicated trip to Taiwan in 2021 to announce a donation of COVID-19 vaccines on behalf of the US government. He also visited last May, soon after my inauguration, continuing to deepen Taiwan-US exchanges. Thanks to support from Chairman Ricketts and Ranking Member Coons, the US Congress has continued to introduce many concrete initiatives and resources to assist Taiwan through the National Defense Authorization Act and Consolidated Appropriations Act, bringing the Taiwan-US partnership even closer. For this, I want to again express my gratitude. There has long been bipartisan support in the US Congress for maintaining security in the Taiwan Strait. Faced with China’s persistent political and military intimidation, Taiwan will endeavor to reform national defense and enhance whole-of-society defense resilience. We will also make special budget allocations to ensure that our defense budget exceeds 3 percent of GDP, up from the current 2.5 percent, so as to enhance Taiwan’s self-defense capabilities. We look forward to Taiwan and the US continuing to work together to maintain peace and stability in the region. We will also promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US. We hope to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation, jointly promoting prosperity and development. We believe that by deepening cooperation through the Taiwan plus one policy, Taiwan and the US will be better positioned to work together on building non-red supply chains. A more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. In closing, I wish Chairman Ricketts and Ranking Member Coons a smooth and successful visit. Chairman Ricketts then delivered remarks, first thanking President Lai for his hospitality. He said that he and his delegation have had a wonderful time meeting with government officials, industry representatives, and the team at the American Institute in Taiwan. Highlighting that Taiwan has long been a friend and partner of the US, he said their bipartisan delegation to Taiwan emphasizes long-time bipartisan support in the US Congress for Taiwan, and though administrations change, that bipartisan support remains. Chairman Ricketts stated that the US is committed to peace and stability in the Indo-Pacific and that they want to see peace across the Taiwan Strait. He also stated that the US opposes any unilateral change in the status of Taiwan and that they expect any differences between Taiwan and China to be resolved peacefully without coercion or the threat of force. To that end, he said, the US will continue to assist Taiwan in its self-defense and will also step up by bolstering its own defense capabilities, noting that there is broad consensus on this in the US Congress. Chairman Ricketts stated that they want to see Taiwan participate in international organizations and memberships where appropriate, and encourage Taiwan to reach out to current and past diplomatic allies to strengthen those bilateral relationships. He pointed out that the long economic relationship between the US and Taiwan is important for our as well as the entire world’s security and prosperity. He also noted that there are many opportunities for us to continue to grow the economic relationship that will help create more prosperity for our respective peoples and ensure that we are more secure in the world. Chairman Ricketts emphasized that they made this trip early on in the new US administration to work with Taiwan to develop three points: security, diplomatic relations, and the economy. He stated that in the face of rising aggression from communist China, the US will provide commensurate help to Taiwan in self-defense and that they will continue to provide the services and tools needed. In closing, Chairman Ricketts once again thanked President Lai for the hospitality and said he looks forward to dialogue on how we can continue these relationships. Ranking Member Coons then delivered remarks. Mentioning that their delegation also visited the Philippines on this trip, he said that there and in Taiwan, they have been focused on peace, stability, and security, and the ways for deepening and strengthening economic and security relations. He noted that 46 years ago, the US Senate passed the Taiwan Relations Act, adding that it was strongly bipartisan when enacted and that support for it is still strongly bipartisan today. Its core commitment, he said, is that the US will be engaged and will be a partner in ensuring that any dispute or challenge across the strait will be resolved peacefully, and that Taiwan will have the resources it needs for its self-defense. Ranking Member Coons said that between people, friendships are deepest and most enduring when they are based not just on interests but on values, and that the same is true between the US and Taiwan. Free press, free enterprise, free societies, democracy – these core shared values, he said, anchor our friendship and partnership, making them deeper. He remarked that they are grateful for the significant investment in the US being made by companies from Taiwan, but what anchors our partnership, in addition to these important investments and investments being made by Taiwan in its own security, are the values that mobilize our free-enterprise spirit and our commitment to free societies. In Europe in recent years, Ranking Member Coons said, an aggressive nation has tried to change boundaries and change history by force. He said that the US and dozens of countries committed to freedom have come to the aid of Ukraine to defend it, help it stabilize, and secure its future. So too in this region of the world, he added, the US and a bipartisan group in the US Senate are committed to stable, secure, peaceful relations and to deterring any unilateral effort to change the status quo by force. In closing, he said he is grateful for a chance to return to Taiwan after the pandemic and that he looks forward to our conversation, our partnership, and the important work we have in front of us. The delegation was accompanied to the Presidential Office by American Institute in Taiwan Taipei Office Director Raymond Greene.

    Details
    2025-04-17
    President Lai meets New Zealand delegation from All-Party Parliamentary Group on Taiwan  
    On the morning of April 17, President Lai Ching-te met with a delegation from New Zealand’s All-Party Parliamentary Group on Taiwan. In remarks, President Lai thanked the government of New Zealand for reiterating the importance of peace and stability across the Taiwan Strait on multiple occasions since last year. He also stated that this year, the Taiwan-New Zealand economic cooperation agreement (ANZTEC) is being implemented in its complete form. The president expressed hope that deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among our indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. A translation of President Lai’s remarks follows: I extend a warm welcome to all of our guests. New Zealand’s All-Party Parliamentary Group on Taiwan was established in 2023, marking a significant milestone in the deepening of Taiwan-New Zealand relations. I would like to thank Members of Parliament Stuart Smith and Tangi Utikere for leading this delegation, and thank all our guests for demonstrating support for Taiwan through action. We currently face a rapidly changing international landscape. Authoritarian regimes continue to converge and expand. Democracies must actively cooperate and jointly safeguard peace, stability, and the prosperous development of the Indo-Pacific region. Since last year, the government of New Zealand has on multiple occasions reiterated the importance of peace and stability across the Taiwan Strait. On behalf of the people of Taiwan, I would like to express our sincere gratitude for these statements and demonstrations of support. This year, ANZTEC is being implemented in its complete form. We look forward to exploring even more diverse markets with New Zealand. Deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. Taiwan and New Zealand share the universal values of democracy, freedom, and respect for human rights, and parliamentary diplomacy is a tradition practiced by democracies around the world. Looking ahead, our parliamentary exchanges and mutual visits are bound to become more frequent. This will enable us to explore even more opportunities for cooperation and further deepen and solidify the democratic partnership between Taiwan and New Zealand. Thank you once again for making the long journey to visit us. I wish you a fruitful and successful trip. I also hope that everyone can take time to see more of Taiwan, try our local cuisine, and learn more about our culture. I hope our guests will fall in love with Taiwan. MP Smith then delivered remarks, saying that it is a great pleasure and an honor to be received by President Lai. The MP, noting that President Lai already covered many of the points he planned to make, went on to say that New Zealand and Taiwan share many values. He indicated that both are trading nations that rely on easy access for imports and exports, and that is why freedom of navigation is so important. That is why New Zealand had a naval vessel sail through the Taiwan Strait, he said, to underline the importance of freedom of navigation and our mutual security. MP Smith said that they look forward to building stronger relationships and enhancing the trade between our two nations. He added that New Zealand has much to offer in the field of geothermal energy to assist Taiwan, and mentioned that New Zealand is third largest in terms of the number of rocket launchers for satellites, which could assist Taiwan with communications in the future. New Zealand has other products as well, he said, but looks for assistance from Taiwan’s technology and technological sector. Lastly, MP Smith stated that he looks forward to a long and prosperous relationship between Taiwan and New Zealand. MP Utikere then delivered remarks, indicating that like Taiwan, New Zealand is a nation that is surrounded by ocean, which means that they rely on strong partnerships with communities of interest all around the globe. He said that the all-party parliamentary friendship group that was established and that they are a part of goes a long way in ensuring that a secure relationship between our two parliaments can continue to prosper. The MP also thanked Taiwan’s Representative to New Zealand Joanne Ou (歐江安) and her team for their work, which has ensured the success of the delegation’s visit. He said that the delegation experienced meetings with ministers in Taiwan’s government, members of the legislature, and those from the non-government organization sector as well. He also said that they enjoyed the opportunity to visit Wulai, and that the strength of the connections between the indigenous peoples of Taiwan and the indigenous peoples of Aotearoa New Zealand is something that certainly landed with members of the delegation. MP Utikere noted that he will take up President Lai’s offer on experiencing more of Taiwan, and will spend a few extra days in Tainan, which he understands has a very special place in the president’s heart, adding that he looks forward to his time and experiences there. The MP concluded his remarks by saying that this will be a relationship that continues to go from strength to strength. After their remarks, the New Zealand delegation sang the Māori song “Tutira Mai Nga Iwi” to extend best wishes to Taiwan. Also in attendance at the meeting were New Zealand Members of Parliament Jamie Arbuckle, Greg Fleming, Hamish Campbell, Cameron Luxton, and Helen White.  

    Details
    2025-04-15
    President Lai meets delegation led by Tuvalu Deputy Prime Minister Panapasi Nelesone 
    On the afternoon of April 15, President Lai Ching-te met with a delegation led by Tuvalu Deputy Prime Minister and Minister of Finance and Economic Development Panapasi Nelesone and his wife. In remarks, President Lai thanked Tuvalu for its staunch and long-term backing of Taiwan’s international participation. The president said he looks forward to our nations deepening bilateral ties in such areas as agriculture, medicine, education, and information and communications technology and working together toward greater peace, prosperity, and development in the Pacific region. A translation of President Lai’s remarks follows: I extend a very warm welcome to Deputy Prime Minister Nelesone and Madame Corinna Ituaso Laafai as they lead this delegation to Taiwan. Our distinguished guests are the first delegation from Tuvalu that I have received at the Presidential Office this year. During my visit to Tuvalu last year, I met and exchanged views with Deputy Prime Minister Nelesone and the ministers present. I am delighted to meet you again today and thank you once again for the hospitality you accorded my delegation. The culture of Tuvalu and the warmth of its people are not easily forgotten. Tuvalu’s support for Taiwan has also touched us deeply. I want to take this opportunity to thank Tuvalu for staunchly backing Taiwan’s international participation over the past several decades. Our two countries have supported each other like family and have together made contributions in the international arena. Last Tuesday, I received the credentials of Ambassador Lily Tangisia Faavae and expressed my hope for Taiwan and Tuvalu continuing to deepen bilateral relations. This visit by Deputy Prime Minister Nelesone is an important step in that regard. Our two countries will be signing a labor cooperation agreement and an agreement concerning the recognition of training and certification of seafarers. This will expand bilateral cooperation at multiple levels and bring our relations even closer. Taiwan and Tuvalu are maritime nations and share the values of democracy and freedom. Our two countries have stood shoulder to shoulder to protect marine resources and address the challenges posed by climate change and authoritarianism, and we aspire to work toward greater peace, prosperity, and development in the Pacific region. Our nations have produced fruitful results in such areas as agriculture, medicine, education, and information and communications technology. I anticipate that, with the support of Deputy Prime Minister Nelesone and our distinguished guests, we can continue to employ a more diverse range of strategies to begin a new chapter in our diplomatic partnership. Together, we can make even greater and more concrete contributions to regional development. Deputy Prime Minister Nelesone then delivered remarks, first thanking President Lai for his kind words of welcome and the warm hospitality extended to his delegation. On behalf of the government and people of Tuvalu, he conveyed their gratitude to the president and the people of Taiwan for the generous support, as well as for the enduring friendship we share. He said that Taiwan’s steadfast commitment to our bilateral relationship has been instrumental in advancing our shared values of democracy, resilience, and sustainable development. From vital development assistance to cooperation in health, education, and climate change resilience, he added, Taiwan’s contributions have made a significant impact on the lives of the people of Tuvalu.  For Taiwan’s recent generous donation of shoes for Tuvaluan primary school students, Deputy Prime Minister Nelesone expressed thanks to President Lai. He commented that these gifts, which underscore a deep commitment to the welfare of their youth, transcend mere material support; they are symbols of care, friendship, and hope for the future generations. Noting that our bilateral relationship is built on mutual respect, shared values, and a common vision for sustainable development in the Pacific, he expressed confidence that this partnership will continue to flourish and will serve as a beacon of cooperation and solidarity within our region.  The delegation also included Tuvalu Minister of Foreign Affairs, Labour, and Trade Paulson Panapa; Minister of Public Works, Infrastructure Development and Water Ampelosa Tehulu, and was accompanied to the Presidential Office by Tuvalu Ambassador Faavae.

    Details
    2025-04-06
    President Lai delivers remarks on US tariff policy response
    On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.

    MIL OSI Asia Pacific News –

    April 24, 2025

  • MIL-OSI United Nations: 24 April 2025 News release Increases in vaccine-preventable disease outbreaks threaten years of progress, warn WHO, UNICEF, Gavi

    Source: World Health Organisation

    Immunization efforts are under growing threat as misinformation, population growth, humanitarian crises and funding cuts jeopardize progress and leave millions of children, adolescents and adults at risk, warn WHO, UNICEF, and Gavi during World Immunization Week, 24–30 April.

    Outbreaks of vaccine-preventable diseases such as measles, meningitis and yellow fever are rising globally, and diseases like diphtheria, that have long been held at bay or virtually disappeared in many countries, are at risk of re-emerging. In response, the agencies are calling for urgent and sustained political attention and investment to strengthen immunization programmes and protect significant progress achieved in reducing child mortality over the past 50 years.

    “Vaccines have saved more than 150 million lives over the past five decades,” said WHO Director-General, Dr Tedros Adhanom Ghebreyesus. “Funding cuts to global health have put these hard-won gains in jeopardy. Outbreaks of vaccine-preventable diseases are increasing around the world, putting lives at risk and exposing countries to increased costs in treating diseases and responding to outbreaks. Countries with limited resources must invest in the highest-impact interventions – and that includes vaccines.”

    Rising outbreaks and strained health systems

    Measles is making an especially dangerous comeback. The number of cases has been increasing year on year since 2021, tracking the reductions in immunization coverage that occurred during and since the COVID-19 pandemic in many communities. Measles cases reached an estimated 10.3 million in 2023, a 20% increase compared to 2022.

    The agencies warn that this upward trend likely continued into 2024 and 2025, as outbreaks have intensified around the world. In the past 12 months, 138 countries have reported measles cases, with 61 experiencing large or disruptive outbreaks – the highest number observed in any 12-month period since 2019.

    Meningitis cases in Africa also rose sharply in 2024, and the upward trend has continued into 2025. In the first three months of this year alone, more than 5500 suspected cases and nearly 300 deaths were reported in 22 countries. This follows approximately 26 000 cases and almost 1400 deaths across 24 countries last year.

    Yellow fever cases in the African region are also climbing, with 124 confirmed cases reported in 12 countries in 2024. This comes after dramatic declines in the disease over the past decade, thanks to global vaccine stockpiles and use of yellow fever vaccine in routine immunization programmes. In the WHO Region of the Americas, yellow fever outbreaks have been confirmed since the beginning of this year, with a total of 131 cases in 4 countries.

    These outbreaks come amidst global funding cuts. A recent WHO rapid stock take with 108 country offices of WHO – mostly in low- and lower-middle-income countries – shows that nearly half of those countries are facing moderate to severe disruptions to vaccination campaigns, routine immunization and access to supplies due to reduced donor funding. Disease surveillance, including for vaccine-preventable diseases, is also impacted in more than half of the countries surveyed.

    At the same time, the number of children missing routine vaccinations has been increasing in recent years, even as countries make efforts to catch up children missed during the pandemic. In 2023, an estimated 14.5 million children missed all of their routine vaccine doses – up from 13.9 million in 2022 and 12.9 million in 2019. Over half of these children live in countries facing conflict, fragility, or instability, where access to basic health services is often disrupted.

    “The global funding crisis is severely limiting our ability to vaccinate over 15 million vulnerable children in fragile and conflict-affected countries against measles,” said UNICEF Executive Director Catherine Russell. “Immunization services, disease surveillance, and the outbreak response in nearly 50 countries are already being disrupted – with setbacks at a similar level to what we saw during COVID-19. We cannot afford to lose ground in the fight against preventable diseases.”

    Continued investment in the ‘Big Catch-Up initiative’, launched in 2023 to reach children who missed vaccines during the COVID-19 pandemic, and other routine immunization programmes will be critical.

    How immunization addresses these challenges

    Joint efforts by WHO, UNICEF, Gavi and partners have helped countries expand access to vaccines and strengthen immunization systems through primary health care, even in the face of mounting challenges. Every year, vaccines save nearly 4.2 million lives against 14 diseases – with nearly half of these lives saved in the African Region.

    Vaccination campaigns have led to the elimination of meningitis A in Africa’s meningitis belt, while a new vaccine that protects against five strains of meningitis holds promise for broader protection, with efforts underway to expand its use for outbreak response and prevention.

    Progress has also been made in reducing yellow fever cases and deaths through increasing routine immunization coverage and emergency vaccine stockpiles, but recent outbreaks in Africa and in the Region of the Americas highlight the risks in areas with no reported cases in the past, low routine vaccination coverage and gaps in preventive campaigns.

    In addition, the past two years have seen substantial progress in other areas of immunization. In the African Region, which has the highest cervical cancer burden in the world, HPV vaccine coverage nearly doubled between 2020 and 2023 from 21% to 40%, reflecting a concerted global effort towards eliminating cervical cancer. The progress in immunization also includes increases in global coverage of pneumococcal conjugate vaccines, particularly in the South-East Asia Region, alongside introductions in Chad and Somalia, countries with high disease burden.

    Another milestone is the sub-national introduction of malaria vaccines in nearly 20 African countries, laying the foundation to save half a million additional lives by 2035 as more countries adopt the vaccines and scale-up accelerates as part of the tools to fight malaria.

    Call to action

    UNICEF, WHO, and Gavi urgently call for parents, the public, and politicians to strengthen support for immunization. The agencies emphasize the need for sustained investment in vaccines and immunization programmes and urge countries to honour their commitments to the Immunization Agenda 2030 (IA2030).

    As part of integrated primary health-care systems, vaccination can protect against diseases and connect families to other essential care, such as antenatal care, nutrition or malaria screening. Immunization is a ‘best buy’ in health with a return on investment of $54 for every dollar invested and provides a foundation for future prosperity and health security.

    “Increasing outbreaks of highly infectious diseases are a concern for the whole world. The good news is we can fight back, and Gavi’s next strategic period has a clear plan to bolster our defences by expanding investments in global vaccine stockpiles and rolling out targeted preventive vaccination in countries most impacted by meningitis, yellow fever and measles,” said Dr Sania Nishtar, CEO of Gavi, the Vaccine Alliance. “These vital activities, however, will be at risk if Gavi is not fully funded for the next five years and we call on our donors to support our mission in the interests of keeping everyone, everywhere, safer from preventable diseases.”

    Gavi’s upcoming high-level pledging summit taking place on 25 June 2025 seeks to raise at least US$ 9 billion from our donors to fund our ambitious strategy to protect 500 million children, saving at least 8 million lives from 2026–2030.

    #####

    Notes to editor:

    Download multimedia content here: https://weshare.unicef.org/Package/2AM4086M4S1G

    About WHO
    Dedicated to the health and well-being of all people and guided by science, the World Health Organization leads and champions global efforts to give everyone, everywhere, an equal chance at a safe and healthy life. We are the UN agency for health. We connect nations, partners and people on the front lines in 150+ locations – leading the world’s response to health emergencies, preventing disease, addressing the root causes of health issues and expanding access to medicines and health care. Our mission is to promote health, keep the world safe and serve the vulnerable. www.who.int

    About UNICEF
    UNICEF works in some of the world’s toughest places, to reach the world’s most disadvantaged children. Across more than 190 countries and territories, we work for every child, everywhere, to build a better world for everyone. For more information about UNICEF and its work, visit: www.unicef.org.

    About Gavi, the Vaccine Alliance
    Gavi, the Vaccine Alliance is a public-private partnership that helps vaccinate more than half the world’s children against some of the world’s deadliest diseases. Since its inception in 2000, Gavi has helped to immunize a whole generation – over 1.1 billion children – and prevented more than 18.8 million future deaths, helping to halve child mortality in 78 lower income countries. Gavi also plays a key role in improving global health security by supporting health systems as well as funding global stockpiles for Ebola, cholera, meningococcal and yellow fever vaccines. After two decades of progress, Gavi is now focused on protecting the next generation, above all the zero-dose children who have not received even a single vaccine shot. The Vaccine Alliance employs innovative finance and the latest technology – from drones to biometrics – to save lives, prevent outbreaks before they can spread and help countries on the road to self-sufficiency. Learn more at www.gavi.org.

    MIL OSI United Nations News –

    April 24, 2025

  • MIL-OSI Russia: Transcript of April 2025 Fiscal Monitor Press Briefing

    Source: IMF – News in Russian

    April 23, 2025

    Speakers:

    Vitor Gaspar, Director, Fiscal Affairs Department
    Era Dabla‑Norris, Deputy Director, Fiscal Affairs Department
    Davide Furceri, Division Chief, Fiscal Affairs Department

    Moderator: Tatiana Mossot, Moderator, Senior Communications Officer

    The Moderator: Good morning, good afternoon, and good evening for our viewers around the world. I am Tatiana Mossot with the IMF Communications Department, and I will be your host for today’s press briefing on the Spring Meetings 2025 Fiscal Monitor named “Fiscal Policy Under Uncertainty.” I am pleased to introduce the Director of the IMF Fiscal Affairs Department, Vitor Gaspar. He is joined by Era Dabla‑Norris, Deputy Director of the Fiscal Affairs Department, and Davide Furceri, Division Chief of the Fiscal Affairs Department. Good morning, Vitor, Era, and Davide.

    Before taking your questions, let me start our briefing by turning to Vitor for his opening remarks. Vitor, the floor is yours.

    Mr. Vitor Gaspar: Good morning. Many thanks for your kind introduction. Thank you all for your interest in the Fiscal Monitor, covering fiscal policies around the world. Since the last Fiscal Monitor in October 2024, global economic prospects have significantly deteriorated and risks to the economic outlook are elevated and tilted to the downside. Uncertainty is very high, and confidence has been weakening. Financial markets have partially corrected, and financing conditions have tightened.

    Global public debt is very high and rising. According to the WEO reference projection in 2025, it will rise above 95 percent of GDP. It is higher and growing faster than pre‑pandemic. It will be approaching 100 percent of GDP by the end of the decade, surpassing the pandemic peak, but global numbers hide a wide diversity across countries. In the figure, every bubble represents a country. The larger the bubble, the larger the country’s GDP. The figure shows debt levels on the vertical axis and debt growth on the horizontal axis compared to pre‑pandemic. The higher the bubble in the figure, the more debt has increased compared to 2019.

    119 countries are above the horizontal axis. For these countries, public debt is higher than pre‑pandemic. The further to the right in the figure, the faster debt grows compared to pre‑pandemic trends. Bubbles as you can see are all over the chart. That illustrates a wide diversity across countries. Therefore, fiscal policies must vary in line with country‑specific factors and circumstances, but in the face of turbulent and threatening times ahead, resilience is needed everywhere. Countries should redouble efforts to keep their own fiscal house in order.

    Let us zoom in on the top, the right top quadrant. Countries in the quadrant have public debt higher and rising faster. This group includes 59 countries. That is about one third of the 175 countries in the chart. But their economies represent 80 percent of world GDP. Their economic weight makes them the main drivers of global trends. You can see many large bubbles in this quadrant. No surprise. Most large economies, including the largest, are there.

    Now, let us focus on the remaining two thirds of countries in the world. There are 116 countries in the group that represent about 20 percent of world GDP. In the chart that you are looking at, the blue line represents all countries except for the 59 that I have mentioned before. The two lines in the chart representing the world and representing the remaining 116 countries evolve similarly up to the year of the pandemic. After 2020, as you can see, the trends diverge. The two lines actually cross in 2023. For these 116 countries, aggregate public debt is now well below pandemic levels, but going forward, it is very flat, indicating a stabilization of public debt at high levels. But the distinctive feature of the current conjuncture is uncertainty. One must go beyond referenced projections.

    In the words of the Managing Director, trade policy uncertainty is off the charts. Upside risk to public debt projections dominates the outlook. The October 2024 Fiscal Monitor introduced a novel tool to quantify the distribution of debt risks around the referenced projection. We call it public debt at risk. According to this tool, global public debt three years ahead would come at 117 percent of GDP in a severe adverse scenario.

    Recent developments with sharpening, increasing, and persistent uncertainty, tightening financing conditions push public debt at risk even higher. In a fast-changing and perilous world, Ministers of Finance must act urgently and decisively. They face stark tradeoffs and painful choices. Policymakers should invest their political capital in building confidence and trust. That starts with keeping their own houses in order. That is especially important in a situation that tested the resilience of individual economies, not to mention the entire system. Putting the house in order involves three policy priorities.

    First, fiscal policy should be part of overall stability‑oriented macroeconomic policies. Second, fiscal policy should in most countries aim at reducing public debt and rebuilding buffers to create space to respond to spending pressures and other economic shocks through a credible medium‑term framework. Third, fiscal policy should, together with other threshold policies, aim at improving potential growth, thereby easing policy tradeoffs. In these times of high uncertainty, fiscal policy must be an anchor for confidence and stability that can contribute to a competitive economy, delivering growth and prosperity for all.

    Ministers of Finance must build trust, tax fairly, spend wisely and take the long view. My colleagues and I are ready to answer any questions that you may have.

    The Moderator: Thank you, Vitor. We will now open the floor to your questions, but before we do that, a couple of ground rules, please. If you want to ask a question, please raise your hand first, wait until I call you and a colleague will give you the microphone. When you ask your questions, please identify yourself and the network you are working for. And for colleagues online, please ask your questions on Webex, and we will come to you.

    QUESTION: According to the report, tariffs and trade tensions have increased uncertainty and risks to economic growth. How can affected countries manage the negative impact on public confidence and growth, especially considering the high level of public debt and financial challenges they are already facing?

    Mr. Vitor Gaspar: Thank you very much for your question. That allows me to summarize again the top‑level message from the Fiscal Monitor. Global public debt, as you said, is high, rising, and we always emphasize it is also risky. It rose above $100 trillion in 2024, and that was a headline six months ago. In the IMF referenced projections, that will continue rising, approaching 100 percent of GDP by the end of the decade.

    But what we emphasize most at this point in time is the unusually elevated degree of uncertainty. To repeat the quote from the Managing Director, “Trade policy uncertainty is literally off the charts.” There is, therefore, a sense of urgency in policymaking. According to our public‑debt‑at‑risk tool, our estimates for three years ahead point to debt at risk at 117 percent of GDP for the world, which is a level that has not been seen in many decades.

    But even that extreme adverse scenario may be under‑estimating tail risks because trade and geoeconomic uncertainty has escalated, financing conditions tightened, financial market volatility is visible from headlines, and spending pressures have intensified further. So, in those conditions, the point about countries keeping their own houses in order is crucial, and that is instrumental to deliver resilience and sustained growth from a long‑term perspective.

    The Moderator: Thank you, Vitor. As you may have seen, there are two chapters, the second one is on emerging markets. And I think Era and Davide; we have some questions for you too.

    QUESTION: Given the current global economic slow‑down, what are the specific challenges and impacts faced by emerging and developing countries and what policy measures can be implemented to mitigate these effects?

    Ms. Era Dabla‑Norris: Let me start with what we see as some of the key sources of uncertainty that emerging market and developing economies are facing. Vitor had laid out some of the broader issues but let me highlight three. So, in addition to the fact that we see growth prospects being marked down across the board, and we see that emerging markets and developing economies could be impacted through trade, financial and commodity channels, let me highlight three specific risks. The first is escalating uncertainty about tariffs and associated policies. In the Fiscal Monitor, we find that geoeconomic uncertainty, in particular, an escalation of geoeconomic uncertainty actually can push up debt over the medium term by about 4.5 percentage points. For emerging market economies in particular, it could be as high as 6 percent of GDP.

    Why is this the case? Because essentially, with higher geoeconomic uncertainty, that can dampen growth prospects, it lowers revenues because consumption production tends to fall. It also leads to higher spending, so as a result, fiscal positions deteriorate and debt increases. That is one important source of risks.

    A second source of risks is more volatile financial conditions. In the U.S., for instance, or other systemically important economies can spillover into emerging market and developing economies. And it can do so by raising sovereign borrowing costs. So, our analysis in the Fiscal Monitor shows that at 100 basis point increase in U.S. nominal Treasury yields translates into 100 basis point increase in emerging market economies’ borrowing costs. And this lasts for several months.

    A third source of risk is that we have seen that debt levels are high in many emerging markets and developing economies, so interest expenses are commensurately very high, and they are eating up a larger share of the budget. So, our analysis shows that 1 percentage point of GDP increase in interest expenses results in crowding out of other essential items within the budget, such as social spending and infrastructure investment. So, as Vitor pointed out, in this environment, it is very, very important for countries to put their own fiscal house in order.

    What does that mean? Country specifics will vary, but what it really means is that countries need to think about putting in place a gradual fiscal adjustment within a credible medium‑term fiscal framework. For EMDEs, where tax revenues are low, they can mobilize additional revenues by expanding the tax base. They can eliminate energy subsidies and other types of subsidies that can be distortionary. They can find ways to reprioritize spending. And most importantly, they can think about the policies that are needed to boost growth because that really can help ease these fiscal tradeoffs.

    QUESTION: My question is about energy subsidies and perhaps pension reforms, which are not related to emerging markets but pretty much the same problem. It is when the margin exists in many countries when you want to have some fiscal space. But in those many countries you have already social tensions that are quite high, so what are the possibilities for countries to make those reforms that are highly unpopular most of the time if they want to have this margin created?

    Ms. Dabla‑Norris: Let me talk about energy subsidies and my colleague Davide can speak a little bit about pension reforms. As you correctly pointed out, countries need to reduce debt. They need to create fiscal space. And energy subsidies and pension reforms can be important reforms that countries can undertake to generate fiscal savings. So, when we look at energy subsidy reforms in particular, energy, they account for about 1.5 percent of GDP on average in emerging markets and developing economies. And reforming them can have tremendous benefits for the economy. So let me enumerate some of them.

    First, it increases energy efficiency in the economy. Secondly, it generates fiscal savings that can then be used to increase other types of social spending and needed priority infrastructure investments. And finally, many of these subsidies tend to be highly regressive, so they do not necessarily benefit the poorest segment or the most vulnerable segments of society.

    In our Fiscal Monitor Chapter 2, what we did is we developed a novel real‑time measure of public sentiment. This is the sentiment of households, civil society organizations, and other stakeholders to gauge how governments can leverage strategies in order to make these kinds of reforms acceptable. There are a number of things that we found that are specific to energy subsidy reforms that I would like to talk about.

    The first is that we found that reforms that are—or changes that take place gradually have greater success of being implemented. To give you an example, Colombia very recently had an energy subsidy reform. They implemented it over a two‑year period, that was preannounced, so that people had time to adjust.

    A second strategy that we found successful—to be successful in shaping the acceptability of these reforms is that there was timely implementation of accompanying measures. And countries that put in place accompanying measures to really protect and support the most vulnerable, countries that put in place measures up‑front and invested in social programs and social infrastructure that was very visible to the public had a greater chance of succeeding.

    We also found that policies that were well‑communicated, that built consensus, that explained the tradeoffs to people had a much higher success of being accepted by the general public. For example, Morocco made it very clear that there was going to be a comprehensive communication strategy at the very beginning, at the very outset, and the message that was conveyed was that subsidies were a poor instrument for providing social support. A host of these strategies can be used by countries to implement these politically challenging reforms.

    Mr. Davide Furceri: The chapter also deals with pension reforms. We know that in many countries, spending on pensions is quite high. Just to give you a couple of numbers, in the case of advanced economies, it is 8 percent of GDP; in emerging market, about four. This spending is projected to increase due to increasing life expectancy and retirement. Reforming the pension system is important to generate fiscal savings but also to sustain labor‑force participation, as well as employment.

    Some of the key messages that we find in the chapter on reforms touch upon some of the issues that Era mentioned, gradual and timly of the reform. But for pension, what we find is that strategic communication and stakeholder engagement has been especially important. Indeed, there are cases of countries that have succeeded in implementing significant reform, for example, presenting an increasing retirement age as part of the reform that was trying to sustain adequate benefit levels. Or in some cases they were creating bipartisan commissions where they were engaging with stakeholders to hear their concerns and think about implementing the reform in the best way.

    An important issue when we think about pension reform is strengthening financial literacy and making sure that various stakeholders will talk about the potential benefits and cost of various pension schemes. Thank you.

    The Moderator: Very last one before we move to the U.S. and the other countries and regional and then we will move to other topics.

    QUESTION: I still want to focus on Chapter 2 because we are talking about developing economies and public sentiment. Era, when you were talking, you talked about subsidies being discretionary, not making the budgets, you know, complete and all of that, but we also know for many developing countries and even frontier economies, they are under pressure to cut back energy subsidies to ease debt burdens, yet these same subsidies often help keep the lights on for millions of families, low‑income families and businesses. You talked about growth earlier on. So, without these low‑income businesses, how would you also get growth? How does the IMF suggest governments manage this delicate balance and enable these countries to rationalize subsidies while safeguarding energy subsidies and cushioning the most vulnerable without leaving them behind because we are torn between having to think that subsidies are really 100 percent bad, so I really wanted to comment on that.

    Then on Nigeria, energy subsidy reforms that were seen have sparked protests and public frustrations, reflecting a top balance between fiscal responsibility and social equity. How do you think that Nigeria can navigate this difficult path and what specific measures can the IMF suggest ensuring that these reforms are fair, inclusive and accepted by the public. Thank you.

    Ms. Era Dabla‑Norris: Let me talk in more detail about subsidies. Thank you for your question. These are challenging reforms to undertake. Why? Because they impact people’s, small firms’ pocketbooks immediately. An increase in energy prices as the government is moving towards cost recovery, pricing impacts pocketbooks immediately. This is a very tangible impact. Whereas the benefits that I spoke of, which are energy efficiency, the ability to reallocate fiscal savings take time to materialize. They are much more diffuse. Everyone benefits from those, but the pocket impact is felt immediately. This is why it is important as we note in our chapter, this is why it is important to have—for governments to think about a comprehensive strategy on how to implement these reforms. When you look at public sentiment across different sort of steps of these reforms, what we find that is really important is that countries that put in place compensatory mechanisms — whether this is cash transfers or more targeted transfers — really for those people who need it most have an easier time in carrying out these types of reforms. So in environments where the public does not trust the government, where there is weak accountability, doing these things up‑front in a very visible way, increasing support for social programs makes it very tangible to the public that the government is going to be doing this, and it is going to be accountable, if you will, for the fiscal savings that will be generated.

    QUESTION: Good morning. As risks for the fiscal outlook have intensified and debt levels may rise even further, as stated in the Fiscal Monitor, how worried are you about any sort of global debt crisis or regional crises that can appear, considering slower growth and new spending pressures on countries?

    Mr. Vitor Gaspar: As you heard yesterday, recession and crisis more than an individual nature are not in our reference projections, although, of course, part of the role of the Fiscal Monitor is precisely to systemically look at risks and vulnerabilities, and our public‑debt‑at‑risk tool is one of the instruments to do exactly that.

    Now, one point which I believe is very important is that precisely because risks and uncertainty are so elevated right now, there is a sense of urgency in policy action. Why? Because there is still time to adopt policies that improve resilience, and there is still time to think through what are the most relevant vulnerability scenarios that apply to individual countries, to regions, or even to broader systems. And it is very important to do that result systemically so that one is ready if and when a crisis comes. Our experience during the pandemic showed that countries that had easy access to financial markets and ample fiscal space did substantially better than others at managing the shocks associated with the pandemic.

    The Moderator: Thank you. We will get back to this part of the room.

    QUESTION: My question is that you just mentioned the public debt remains very elevated and also this would cause fiscal space to continue to narrow down in many countries, including some major economies. So, what consequence will this bring to the world global economy if this kind of situation continues to develop?

    Mr. Vitor Gaspar: So I think that the answer that I gave to the question just now applies, given these elevated risks and uncertainties, it is crucial that countries focus on keeping their own house in order since situations around the world are so diverse, as Era emphasized, that will imply different policies in different countries. But the crucial thing is that in a situation that is as fast changing as the one we are facing now and where risks and uncertainties are so elevated, there is an urgency in acting to improve fiscal space, build buffers, and, therefore, be in a position to ensure resilience and sustain growth.

    The Moderator: Thank you. We will get back to this part of the room. The gentleman with the red shirt, please.

    QUESTION: Thank you very much. Allow me to back‑pedal to the EMDEs. The Fiscal Monitor speaks about the need to widen the tax base. A number of frontier market economies have been rolling out significant economic present stacks and minimum top‑up tax in line with the Pillar 1 and Pillar 2. But now this puts them in the cross‑hairs with the Trump administration, and many are now wondering whether they should be rolling back. So which pathway does the Fund see sustainable, considering many are looking at preferential access to the American market?

    Mr. Davide Furceri: Regarding the tax, I think it is important to make three important points. The first is that in the current situation where many emerging market and developing countries are characterized by three factors, one, foreign aid is declining; second, we have seen that increasing financial volatility can increase interest rates in these countries. This is in a situation where interest rates over revenue for many countries is about 10 percent of GDP. Third, [volatile] financial conditions also implies that less flows will go to these countries. The point that we make in the Fiscal Monitor is that revenue and revenue mobilization can be a stable source for financing significant spending for social benefit or public investment. How we should strengthen revenue mobilization, typically there are three sorts of arrows that you can go. One is expanding the tax base. Second, eliminate tax exemptions. Third, which is also important, and that the IMF does a lot of work in terms of capacity development is strengthening tax administrations. When we think about the tax strategy, we have to consider all of these three elements, and for many emerging markets and developing countries, there are significant potential tax gains that can be achieved.

    The Moderator: Yes, please.

    Mr. Vitor Gaspar: Just one word of addition. Davide correctly pointed out these three very important elements, broadening the tax base, dealing with tax expenditures and strengthening revenue administration. Yesterday I participated in a high‑level panel precisely on the mobilization of resources, and these three elements were repeated by the Ministers of Pakistan, Paraguay and Rwanda, and they found this frame relevant in their own experience of trying to improve the capacity of their countries to mobilize revenues.

    The Moderator: We have two questions online. I think this one will be for you, Era, about Spain. Yesterday they revised upwards the growth of Spain and have already highlighted the good performance of the Spanish economy. What should this country do with these good growth results regarding its fiscal policies in the short and medium term? And we will have another one for South Africa online.

    Ms. Era Dabla‑Norris: Thank you for the question. Given Spain’s relatively strong fiscal position as well as economic position, there is scope now to front‑load some of the adjustment that they were thinking about because public debt levels in Spain still remain very high, although they have come down from the pandemic peaks. They still remain very high. This would be really important to put debt firmly down on a downward trajectory.

    Accumulative adjustment of about 3 percent of GDP over the next three years, say 2025 to 2029, similar to the one that was envisaged in terms of magnitude by the authorities but more frontloaded, would help achieve the goal. Now, as Vitor has pointed out, we are encouraging countries to bring debt down for a number of reasons. This is important because you want to reduce debt risks. This is important because countries should either expand or replenish the buffers that were diminished in the wake of the pandemic and also because of ongoing uncertainties. Finally, because countries will need—countries like Spain will need to spend on other areas, population aging, climate, defense and such.

    The Moderator: Just before we go to South Africa, any other European question? One time, two time, no European question in the room. OK.

    QUESTION: Thank you. The question on South Africa but also on the broader region: On South Africa, the IMF is quite significantly more pessimistic on the fiscal trajectory than our own government, which sees debt stabilizing, whereas the IMF sees it rising close to 90 percent of GDP at the end of the decade. Why are you so much more pessimistic of the authorities’ promised consolidation? But also on the region, sub‑Saharan Africa more broadly, how do you see the impact of what is happening globally on the region’s ability to borrow and particularly to borrow in international markets, and given a lot of the countries in the region are in debt distress or close to debt distress, what impact will that have on the economies of the sub‑Saharan Africa? Thank you.

    The Moderator: Thank you very much.

    Ms. Era Dabla‑Norris: Thank you very much. Briefly on South Africa, the general government deficit in South Africa was about 6 percent of GDP in 2024. We project the fiscal deficit in 2025, although this is subject to considerable—all projections are subject to considerable uncertainties at this juncture to be around 6.6 percent of GDP. This is mainly driven by higher spending. Some of the differences stem from the fact that our projections are based on much more conservative assumptions regarding the buoyancy of the tax system, as well as the extent of primary spending compression that can be undertaken. So that really accounts for differences in projections between the two countries and also the path of debt going forward. Let me turn it over to Davide.

    Mr. Davide Furceri: Yes, more broadly and on financing costs for sub‑Saharan African regions, let me point out two factors. The first is that, of course, we have seen interest rates rising. So, this increasing interest rate in many countries, including South Africa, is basically driven by two factors. You have sort of an interest rate in main advanced economies that has been on a rising trend. On the positive side, in many countries, especially those with better fiscal positions, you actually have seen spreads, so the difference between the domestic interest rate and the foreign interest rate declines. However, and this is something that we point out in the Fiscal Monitor, that increased risk, increase of risk of uncertainty, financial market volatility, can turn things around. In other words, we see that increasing financial market volatility globally can lead to an increase in spreads.

    The second point is that one part we have seen for many low‑income countries since the pandemic is they are relying much more on domestic issuance of debt rather than on the foreign market. This is on one hand sort of offset some of the challenges like to the global environment but also increase some sort of domestic vulnerability, because sometimes the interest rates rise. There are things that are important to think about this strategy. But definitely, as we mentioned, interest rate is a source of rising in terms of revenue is a source of concern. Let me make the point again that we made, I think strengthening fiscal buffers, revenue mobilization are important elements to reduce — to have this trend to decline.

    The Moderator: Thank you. I believe we received some questions for Latin America and, yes, there are some reporters in the room. Yes, please, the lady in the third row here.

    QUESTION: Thank you. You already talked about emerging markets, but focusing on Latin America, I want to know which one—you already have talked about it too, but which one is the biggest fiscal risk and what should economies in Latin America should be thinking about doing in terms of growing and accepting new investment, for example, to confront the situation abroad? Thank you.

    Ms. Era Dabla‑Norris: Thank you for your question. Many of the risks that other emerging market economies face, countries in Latin America obviously also face, we have already talked at length about that. But I am going to talk about a few things that are specific to many of the countries in Latin America. So, there is two challenges that limit fiscal flexibility in Latin America. The first is that there are spending rigidities. What I mean by that is there is a lot of amounts of spending that is mandatory, on pensions, on wages, on transfers. This leaves very little room for fiscal flexibility.

    At the same time, like many other emerging markets and developing economies, spending pressures are on the rise. There are growing demands for social services, for infrastructure, for adopting to climate change, and all of these are putting pressures on the budget. Now, when you look at what has happened since the pandemic, countries have made ambitious plans to consolidate their budget. There have been ambitious announcements of fiscal consolidation plans, but at the same time expenditure increases have outpaced revenue gains. So, for many countries in the region, we see debt levels continuing to rise. And the challenge here is that we are in a world with greater uncertainty than we were even six months ago. So, it is really important for countries in the region to implement at a minimum the announced fiscal consolidation plan and to do this within credible medium‑term frameworks. Many countries in Latin America and the Caribbean region have fiscal rules. So to implement these rules, to spend efficiently, to think about the types of fiscal reforms that are needed, whether it is revenue mobilization in countries where revenue‑to‑GDP ratios are low, whether it is spending prioritization or reprioritization, to create the room that is needed for priority investments and social spending and infrastructure and such.

    The Moderator: Thank you. One last question.

    QUESTION: I am from Thailand. I want to ask about the overall trend of the public debt, especially for the ASEAN 5. It would be great if you could mention specifically on Thailand.

    The Moderator: I think we had the Nigeria question to answer too, and we will close there. Thank you.

    Mr. Davide Furceri: Let me start with Nigeria. So, Nigeria managed to do a very difficult reform that was important to deliver fiscal savings. The authorities also scaled up transfers, technical transfers. What we think there is, what is important to act on two pillars. One is to generate additional fiscal savings. We mentioned revenue mobilization. To really scale up spending on social protection, spending on investment, in a way as was mentioned, many countries, they need to spend, and there I want to go back to Vitor’s first remarks. We encourage countries to spend very wisely. Strengthening prioritization in terms of spending, strengthening the efficiency of spending is important. Final important message we would like to give for Nigeria but also for other countries is that fiscal institutions are very important. Having a medium‑term fiscal framework, Public Financial Management are key important because on the one hand they try to help the fiscal anchor, so they set apart for the fiscal adjustment, but also reduce the fiscal uncertainty per se. So as Vitor mentioned, we want the fiscal to be a source of stability and not a source of uncertainty, and that is where fiscal institutions have an important role to play.

    The Moderator: Thank you. Very quickly, Era.

    Ms. Era Dabla‑Norris: On ASEAN, there is a huge variation in fiscal positions across the region. On average, the ASEAN region debt‑to‑GDP ratios are lower than they are in other emerging market and developing economies. That said, in Thailand, relative to the other countries in ASEAN, debt levels are slightly more elevated, over 60 percent of GDP. Our advice has been that fiscal policy should be prudent and parsimonious, given all the reasons we have discussed over the course of this morning. So, measures that are needed to smooth adjustment in light of higher tariffs should be thought of in a wise way, temporary, targeted measures in the context of tariff uncertainty, and ongoing consolidation plans implemented to bring debt down in a sustainable manner.

    The Moderator: Thank you very much

    IMF Communications Department
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    https://www.imf.org/en/News/Articles/2025/04/24/tr-042325-fm-press-briefing

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    April 24, 2025

  • MIL-OSI Economics: Transcript of April 2025 Fiscal Monitor Press Briefing

    Source: International Monetary Fund

    April 23, 2025

    Speakers:

    Vitor Gaspar, Director, Fiscal Affairs Department
    Era Dabla‑Norris, Deputy Director, Fiscal Affairs Department
    Davide Furceri, Division Chief, Fiscal Affairs Department

    Moderator: Tatiana Mossot, Moderator, Senior Communications Officer

    The Moderator: Good morning, good afternoon, and good evening for our viewers around the world. I am Tatiana Mossot with the IMF Communications Department, and I will be your host for today’s press briefing on the Spring Meetings 2025 Fiscal Monitor named “Fiscal Policy Under Uncertainty.” I am pleased to introduce the Director of the IMF Fiscal Affairs Department, Vitor Gaspar. He is joined by Era Dabla‑Norris, Deputy Director of the Fiscal Affairs Department, and Davide Furceri, Division Chief of the Fiscal Affairs Department. Good morning, Vitor, Era, and Davide.

    Before taking your questions, let me start our briefing by turning to Vitor for his opening remarks. Vitor, the floor is yours.

    Mr. Vitor Gaspar: Good morning. Many thanks for your kind introduction. Thank you all for your interest in the Fiscal Monitor, covering fiscal policies around the world. Since the last Fiscal Monitor in October 2024, global economic prospects have significantly deteriorated and risks to the economic outlook are elevated and tilted to the downside. Uncertainty is very high, and confidence has been weakening. Financial markets have partially corrected, and financing conditions have tightened.

    Global public debt is very high and rising. According to the WEO reference projection in 2025, it will rise above 95 percent of GDP. It is higher and growing faster than pre‑pandemic. It will be approaching 100 percent of GDP by the end of the decade, surpassing the pandemic peak, but global numbers hide a wide diversity across countries. In the figure, every bubble represents a country. The larger the bubble, the larger the country’s GDP. The figure shows debt levels on the vertical axis and debt growth on the horizontal axis compared to pre‑pandemic. The higher the bubble in the figure, the more debt has increased compared to 2019.

    119 countries are above the horizontal axis. For these countries, public debt is higher than pre‑pandemic. The further to the right in the figure, the faster debt grows compared to pre‑pandemic trends. Bubbles as you can see are all over the chart. That illustrates a wide diversity across countries. Therefore, fiscal policies must vary in line with country‑specific factors and circumstances, but in the face of turbulent and threatening times ahead, resilience is needed everywhere. Countries should redouble efforts to keep their own fiscal house in order.

    Let us zoom in on the top, the right top quadrant. Countries in the quadrant have public debt higher and rising faster. This group includes 59 countries. That is about one third of the 175 countries in the chart. But their economies represent 80 percent of world GDP. Their economic weight makes them the main drivers of global trends. You can see many large bubbles in this quadrant. No surprise. Most large economies, including the largest, are there.

    Now, let us focus on the remaining two thirds of countries in the world. There are 116 countries in the group that represent about 20 percent of world GDP. In the chart that you are looking at, the blue line represents all countries except for the 59 that I have mentioned before. The two lines in the chart representing the world and representing the remaining 116 countries evolve similarly up to the year of the pandemic. After 2020, as you can see, the trends diverge. The two lines actually cross in 2023. For these 116 countries, aggregate public debt is now well below pandemic levels, but going forward, it is very flat, indicating a stabilization of public debt at high levels. But the distinctive feature of the current conjuncture is uncertainty. One must go beyond referenced projections.

    In the words of the Managing Director, trade policy uncertainty is off the charts. Upside risk to public debt projections dominates the outlook. The October 2024 Fiscal Monitor introduced a novel tool to quantify the distribution of debt risks around the referenced projection. We call it public debt at risk. According to this tool, global public debt three years ahead would come at 117 percent of GDP in a severe adverse scenario.

    Recent developments with sharpening, increasing, and persistent uncertainty, tightening financing conditions push public debt at risk even higher. In a fast-changing and perilous world, Ministers of Finance must act urgently and decisively. They face stark tradeoffs and painful choices. Policymakers should invest their political capital in building confidence and trust. That starts with keeping their own houses in order. That is especially important in a situation that tested the resilience of individual economies, not to mention the entire system. Putting the house in order involves three policy priorities.

    First, fiscal policy should be part of overall stability‑oriented macroeconomic policies. Second, fiscal policy should in most countries aim at reducing public debt and rebuilding buffers to create space to respond to spending pressures and other economic shocks through a credible medium‑term framework. Third, fiscal policy should, together with other threshold policies, aim at improving potential growth, thereby easing policy tradeoffs. In these times of high uncertainty, fiscal policy must be an anchor for confidence and stability that can contribute to a competitive economy, delivering growth and prosperity for all.

    Ministers of Finance must build trust, tax fairly, spend wisely and take the long view. My colleagues and I are ready to answer any questions that you may have.

    The Moderator: Thank you, Vitor. We will now open the floor to your questions, but before we do that, a couple of ground rules, please. If you want to ask a question, please raise your hand first, wait until I call you and a colleague will give you the microphone. When you ask your questions, please identify yourself and the network you are working for. And for colleagues online, please ask your questions on Webex, and we will come to you.

    QUESTION: According to the report, tariffs and trade tensions have increased uncertainty and risks to economic growth. How can affected countries manage the negative impact on public confidence and growth, especially considering the high level of public debt and financial challenges they are already facing?

    Mr. Vitor Gaspar: Thank you very much for your question. That allows me to summarize again the top‑level message from the Fiscal Monitor. Global public debt, as you said, is high, rising, and we always emphasize it is also risky. It rose above $100 trillion in 2024, and that was a headline six months ago. In the IMF referenced projections, that will continue rising, approaching 100 percent of GDP by the end of the decade.

    But what we emphasize most at this point in time is the unusually elevated degree of uncertainty. To repeat the quote from the Managing Director, “Trade policy uncertainty is literally off the charts.” There is, therefore, a sense of urgency in policymaking. According to our public‑debt‑at‑risk tool, our estimates for three years ahead point to debt at risk at 117 percent of GDP for the world, which is a level that has not been seen in many decades.

    But even that extreme adverse scenario may be under‑estimating tail risks because trade and geoeconomic uncertainty has escalated, financing conditions tightened, financial market volatility is visible from headlines, and spending pressures have intensified further. So, in those conditions, the point about countries keeping their own houses in order is crucial, and that is instrumental to deliver resilience and sustained growth from a long‑term perspective.

    The Moderator: Thank you, Vitor. As you may have seen, there are two chapters, the second one is on emerging markets. And I think Era and Davide; we have some questions for you too.

    QUESTION: Given the current global economic slow‑down, what are the specific challenges and impacts faced by emerging and developing countries and what policy measures can be implemented to mitigate these effects?

    Ms. Era Dabla‑Norris: Let me start with what we see as some of the key sources of uncertainty that emerging market and developing economies are facing. Vitor had laid out some of the broader issues but let me highlight three. So, in addition to the fact that we see growth prospects being marked down across the board, and we see that emerging markets and developing economies could be impacted through trade, financial and commodity channels, let me highlight three specific risks. The first is escalating uncertainty about tariffs and associated policies. In the Fiscal Monitor, we find that geoeconomic uncertainty, in particular, an escalation of geoeconomic uncertainty actually can push up debt over the medium term by about 4.5 percentage points. For emerging market economies in particular, it could be as high as 6 percent of GDP.

    Why is this the case? Because essentially, with higher geoeconomic uncertainty, that can dampen growth prospects, it lowers revenues because consumption production tends to fall. It also leads to higher spending, so as a result, fiscal positions deteriorate and debt increases. That is one important source of risks.

    A second source of risks is more volatile financial conditions. In the U.S., for instance, or other systemically important economies can spillover into emerging market and developing economies. And it can do so by raising sovereign borrowing costs. So, our analysis in the Fiscal Monitor shows that at 100 basis point increase in U.S. nominal Treasury yields translates into 100 basis point increase in emerging market economies’ borrowing costs. And this lasts for several months.

    A third source of risk is that we have seen that debt levels are high in many emerging markets and developing economies, so interest expenses are commensurately very high, and they are eating up a larger share of the budget. So, our analysis shows that 1 percentage point of GDP increase in interest expenses results in crowding out of other essential items within the budget, such as social spending and infrastructure investment. So, as Vitor pointed out, in this environment, it is very, very important for countries to put their own fiscal house in order.

    What does that mean? Country specifics will vary, but what it really means is that countries need to think about putting in place a gradual fiscal adjustment within a credible medium‑term fiscal framework. For EMDEs, where tax revenues are low, they can mobilize additional revenues by expanding the tax base. They can eliminate energy subsidies and other types of subsidies that can be distortionary. They can find ways to reprioritize spending. And most importantly, they can think about the policies that are needed to boost growth because that really can help ease these fiscal tradeoffs.

    QUESTION: My question is about energy subsidies and perhaps pension reforms, which are not related to emerging markets but pretty much the same problem. It is when the margin exists in many countries when you want to have some fiscal space. But in those many countries you have already social tensions that are quite high, so what are the possibilities for countries to make those reforms that are highly unpopular most of the time if they want to have this margin created?

    Ms. Dabla‑Norris: Let me talk about energy subsidies and my colleague Davide can speak a little bit about pension reforms. As you correctly pointed out, countries need to reduce debt. They need to create fiscal space. And energy subsidies and pension reforms can be important reforms that countries can undertake to generate fiscal savings. So, when we look at energy subsidy reforms in particular, energy, they account for about 1.5 percent of GDP on average in emerging markets and developing economies. And reforming them can have tremendous benefits for the economy. So let me enumerate some of them.

    First, it increases energy efficiency in the economy. Secondly, it generates fiscal savings that can then be used to increase other types of social spending and needed priority infrastructure investments. And finally, many of these subsidies tend to be highly regressive, so they do not necessarily benefit the poorest segment or the most vulnerable segments of society.

    In our Fiscal Monitor Chapter 2, what we did is we developed a novel real‑time measure of public sentiment. This is the sentiment of households, civil society organizations, and other stakeholders to gauge how governments can leverage strategies in order to make these kinds of reforms acceptable. There are a number of things that we found that are specific to energy subsidy reforms that I would like to talk about.

    The first is that we found that reforms that are—or changes that take place gradually have greater success of being implemented. To give you an example, Colombia very recently had an energy subsidy reform. They implemented it over a two‑year period, that was preannounced, so that people had time to adjust.

    A second strategy that we found successful—to be successful in shaping the acceptability of these reforms is that there was timely implementation of accompanying measures. And countries that put in place accompanying measures to really protect and support the most vulnerable, countries that put in place measures up‑front and invested in social programs and social infrastructure that was very visible to the public had a greater chance of succeeding.

    We also found that policies that were well‑communicated, that built consensus, that explained the tradeoffs to people had a much higher success of being accepted by the general public. For example, Morocco made it very clear that there was going to be a comprehensive communication strategy at the very beginning, at the very outset, and the message that was conveyed was that subsidies were a poor instrument for providing social support. A host of these strategies can be used by countries to implement these politically challenging reforms.

    Mr. Davide Furceri: The chapter also deals with pension reforms. We know that in many countries, spending on pensions is quite high. Just to give you a couple of numbers, in the case of advanced economies, it is 8 percent of GDP; in emerging market, about four. This spending is projected to increase due to increasing life expectancy and retirement. Reforming the pension system is important to generate fiscal savings but also to sustain labor‑force participation, as well as employment.

    Some of the key messages that we find in the chapter on reforms touch upon some of the issues that Era mentioned, gradual and timly of the reform. But for pension, what we find is that strategic communication and stakeholder engagement has been especially important. Indeed, there are cases of countries that have succeeded in implementing significant reform, for example, presenting an increasing retirement age as part of the reform that was trying to sustain adequate benefit levels. Or in some cases they were creating bipartisan commissions where they were engaging with stakeholders to hear their concerns and think about implementing the reform in the best way.

    An important issue when we think about pension reform is strengthening financial literacy and making sure that various stakeholders will talk about the potential benefits and cost of various pension schemes. Thank you.

    The Moderator: Very last one before we move to the U.S. and the other countries and regional and then we will move to other topics.

    QUESTION: I still want to focus on Chapter 2 because we are talking about developing economies and public sentiment. Era, when you were talking, you talked about subsidies being discretionary, not making the budgets, you know, complete and all of that, but we also know for many developing countries and even frontier economies, they are under pressure to cut back energy subsidies to ease debt burdens, yet these same subsidies often help keep the lights on for millions of families, low‑income families and businesses. You talked about growth earlier on. So, without these low‑income businesses, how would you also get growth? How does the IMF suggest governments manage this delicate balance and enable these countries to rationalize subsidies while safeguarding energy subsidies and cushioning the most vulnerable without leaving them behind because we are torn between having to think that subsidies are really 100 percent bad, so I really wanted to comment on that.

    Then on Nigeria, energy subsidy reforms that were seen have sparked protests and public frustrations, reflecting a top balance between fiscal responsibility and social equity. How do you think that Nigeria can navigate this difficult path and what specific measures can the IMF suggest ensuring that these reforms are fair, inclusive and accepted by the public. Thank you.

    Ms. Era Dabla‑Norris: Let me talk in more detail about subsidies. Thank you for your question. These are challenging reforms to undertake. Why? Because they impact people’s, small firms’ pocketbooks immediately. An increase in energy prices as the government is moving towards cost recovery, pricing impacts pocketbooks immediately. This is a very tangible impact. Whereas the benefits that I spoke of, which are energy efficiency, the ability to reallocate fiscal savings take time to materialize. They are much more diffuse. Everyone benefits from those, but the pocket impact is felt immediately. This is why it is important as we note in our chapter, this is why it is important to have—for governments to think about a comprehensive strategy on how to implement these reforms. When you look at public sentiment across different sort of steps of these reforms, what we find that is really important is that countries that put in place compensatory mechanisms — whether this is cash transfers or more targeted transfers — really for those people who need it most have an easier time in carrying out these types of reforms. So in environments where the public does not trust the government, where there is weak accountability, doing these things up‑front in a very visible way, increasing support for social programs makes it very tangible to the public that the government is going to be doing this, and it is going to be accountable, if you will, for the fiscal savings that will be generated.

    QUESTION: Good morning. As risks for the fiscal outlook have intensified and debt levels may rise even further, as stated in the Fiscal Monitor, how worried are you about any sort of global debt crisis or regional crises that can appear, considering slower growth and new spending pressures on countries?

    Mr. Vitor Gaspar: As you heard yesterday, recession and crisis more than an individual nature are not in our reference projections, although, of course, part of the role of the Fiscal Monitor is precisely to systemically look at risks and vulnerabilities, and our public‑debt‑at‑risk tool is one of the instruments to do exactly that.

    Now, one point which I believe is very important is that precisely because risks and uncertainty are so elevated right now, there is a sense of urgency in policy action. Why? Because there is still time to adopt policies that improve resilience, and there is still time to think through what are the most relevant vulnerability scenarios that apply to individual countries, to regions, or even to broader systems. And it is very important to do that result systemically so that one is ready if and when a crisis comes. Our experience during the pandemic showed that countries that had easy access to financial markets and ample fiscal space did substantially better than others at managing the shocks associated with the pandemic.

    The Moderator: Thank you. We will get back to this part of the room.

    QUESTION: My question is that you just mentioned the public debt remains very elevated and also this would cause fiscal space to continue to narrow down in many countries, including some major economies. So, what consequence will this bring to the world global economy if this kind of situation continues to develop?

    Mr. Vitor Gaspar: So I think that the answer that I gave to the question just now applies, given these elevated risks and uncertainties, it is crucial that countries focus on keeping their own house in order since situations around the world are so diverse, as Era emphasized, that will imply different policies in different countries. But the crucial thing is that in a situation that is as fast changing as the one we are facing now and where risks and uncertainties are so elevated, there is an urgency in acting to improve fiscal space, build buffers, and, therefore, be in a position to ensure resilience and sustain growth.

    The Moderator: Thank you. We will get back to this part of the room. The gentleman with the red shirt, please.

    QUESTION: Thank you very much. Allow me to back‑pedal to the EMDEs. The Fiscal Monitor speaks about the need to widen the tax base. A number of frontier market economies have been rolling out significant economic present stacks and minimum top‑up tax in line with the Pillar 1 and Pillar 2. But now this puts them in the cross‑hairs with the Trump administration, and many are now wondering whether they should be rolling back. So which pathway does the Fund see sustainable, considering many are looking at preferential access to the American market?

    Mr. Davide Furceri: Regarding the tax, I think it is important to make three important points. The first is that in the current situation where many emerging market and developing countries are characterized by three factors, one, foreign aid is declining; second, we have seen that increasing financial volatility can increase interest rates in these countries. This is in a situation where interest rates over revenue for many countries is about 10 percent of GDP. Third, [volatile] financial conditions also implies that less flows will go to these countries. The point that we make in the Fiscal Monitor is that revenue and revenue mobilization can be a stable source for financing significant spending for social benefit or public investment. How we should strengthen revenue mobilization, typically there are three sorts of arrows that you can go. One is expanding the tax base. Second, eliminate tax exemptions. Third, which is also important, and that the IMF does a lot of work in terms of capacity development is strengthening tax administrations. When we think about the tax strategy, we have to consider all of these three elements, and for many emerging markets and developing countries, there are significant potential tax gains that can be achieved.

    The Moderator: Yes, please.

    Mr. Vitor Gaspar: Just one word of addition. Davide correctly pointed out these three very important elements, broadening the tax base, dealing with tax expenditures and strengthening revenue administration. Yesterday I participated in a high‑level panel precisely on the mobilization of resources, and these three elements were repeated by the Ministers of Pakistan, Paraguay and Rwanda, and they found this frame relevant in their own experience of trying to improve the capacity of their countries to mobilize revenues.

    The Moderator: We have two questions online. I think this one will be for you, Era, about Spain. Yesterday they revised upwards the growth of Spain and have already highlighted the good performance of the Spanish economy. What should this country do with these good growth results regarding its fiscal policies in the short and medium term? And we will have another one for South Africa online.

    Ms. Era Dabla‑Norris: Thank you for the question. Given Spain’s relatively strong fiscal position as well as economic position, there is scope now to front‑load some of the adjustment that they were thinking about because public debt levels in Spain still remain very high, although they have come down from the pandemic peaks. They still remain very high. This would be really important to put debt firmly down on a downward trajectory.

    Accumulative adjustment of about 3 percent of GDP over the next three years, say 2025 to 2029, similar to the one that was envisaged in terms of magnitude by the authorities but more frontloaded, would help achieve the goal. Now, as Vitor has pointed out, we are encouraging countries to bring debt down for a number of reasons. This is important because you want to reduce debt risks. This is important because countries should either expand or replenish the buffers that were diminished in the wake of the pandemic and also because of ongoing uncertainties. Finally, because countries will need—countries like Spain will need to spend on other areas, population aging, climate, defense and such.

    The Moderator: Just before we go to South Africa, any other European question? One time, two time, no European question in the room. OK.

    QUESTION: Thank you. The question on South Africa but also on the broader region: On South Africa, the IMF is quite significantly more pessimistic on the fiscal trajectory than our own government, which sees debt stabilizing, whereas the IMF sees it rising close to 90 percent of GDP at the end of the decade. Why are you so much more pessimistic of the authorities’ promised consolidation? But also on the region, sub‑Saharan Africa more broadly, how do you see the impact of what is happening globally on the region’s ability to borrow and particularly to borrow in international markets, and given a lot of the countries in the region are in debt distress or close to debt distress, what impact will that have on the economies of the sub‑Saharan Africa? Thank you.

    The Moderator: Thank you very much.

    Ms. Era Dabla‑Norris: Thank you very much. Briefly on South Africa, the general government deficit in South Africa was about 6 percent of GDP in 2024. We project the fiscal deficit in 2025, although this is subject to considerable—all projections are subject to considerable uncertainties at this juncture to be around 6.6 percent of GDP. This is mainly driven by higher spending. Some of the differences stem from the fact that our projections are based on much more conservative assumptions regarding the buoyancy of the tax system, as well as the extent of primary spending compression that can be undertaken. So that really accounts for differences in projections between the two countries and also the path of debt going forward. Let me turn it over to Davide.

    Mr. Davide Furceri: Yes, more broadly and on financing costs for sub‑Saharan African regions, let me point out two factors. The first is that, of course, we have seen interest rates rising. So, this increasing interest rate in many countries, including South Africa, is basically driven by two factors. You have sort of an interest rate in main advanced economies that has been on a rising trend. On the positive side, in many countries, especially those with better fiscal positions, you actually have seen spreads, so the difference between the domestic interest rate and the foreign interest rate declines. However, and this is something that we point out in the Fiscal Monitor, that increased risk, increase of risk of uncertainty, financial market volatility, can turn things around. In other words, we see that increasing financial market volatility globally can lead to an increase in spreads.

    The second point is that one part we have seen for many low‑income countries since the pandemic is they are relying much more on domestic issuance of debt rather than on the foreign market. This is on one hand sort of offset some of the challenges like to the global environment but also increase some sort of domestic vulnerability, because sometimes the interest rates rise. There are things that are important to think about this strategy. But definitely, as we mentioned, interest rate is a source of rising in terms of revenue is a source of concern. Let me make the point again that we made, I think strengthening fiscal buffers, revenue mobilization are important elements to reduce — to have this trend to decline.

    The Moderator: Thank you. I believe we received some questions for Latin America and, yes, there are some reporters in the room. Yes, please, the lady in the third row here.

    QUESTION: Thank you. You already talked about emerging markets, but focusing on Latin America, I want to know which one—you already have talked about it too, but which one is the biggest fiscal risk and what should economies in Latin America should be thinking about doing in terms of growing and accepting new investment, for example, to confront the situation abroad? Thank you.

    Ms. Era Dabla‑Norris: Thank you for your question. Many of the risks that other emerging market economies face, countries in Latin America obviously also face, we have already talked at length about that. But I am going to talk about a few things that are specific to many of the countries in Latin America. So, there is two challenges that limit fiscal flexibility in Latin America. The first is that there are spending rigidities. What I mean by that is there is a lot of amounts of spending that is mandatory, on pensions, on wages, on transfers. This leaves very little room for fiscal flexibility.

    At the same time, like many other emerging markets and developing economies, spending pressures are on the rise. There are growing demands for social services, for infrastructure, for adopting to climate change, and all of these are putting pressures on the budget. Now, when you look at what has happened since the pandemic, countries have made ambitious plans to consolidate their budget. There have been ambitious announcements of fiscal consolidation plans, but at the same time expenditure increases have outpaced revenue gains. So, for many countries in the region, we see debt levels continuing to rise. And the challenge here is that we are in a world with greater uncertainty than we were even six months ago. So, it is really important for countries in the region to implement at a minimum the announced fiscal consolidation plan and to do this within credible medium‑term frameworks. Many countries in Latin America and the Caribbean region have fiscal rules. So to implement these rules, to spend efficiently, to think about the types of fiscal reforms that are needed, whether it is revenue mobilization in countries where revenue‑to‑GDP ratios are low, whether it is spending prioritization or reprioritization, to create the room that is needed for priority investments and social spending and infrastructure and such.

    The Moderator: Thank you. One last question.

    QUESTION: I am from Thailand. I want to ask about the overall trend of the public debt, especially for the ASEAN 5. It would be great if you could mention specifically on Thailand.

    The Moderator: I think we had the Nigeria question to answer too, and we will close there. Thank you.

    Mr. Davide Furceri: Let me start with Nigeria. So, Nigeria managed to do a very difficult reform that was important to deliver fiscal savings. The authorities also scaled up transfers, technical transfers. What we think there is, what is important to act on two pillars. One is to generate additional fiscal savings. We mentioned revenue mobilization. To really scale up spending on social protection, spending on investment, in a way as was mentioned, many countries, they need to spend, and there I want to go back to Vitor’s first remarks. We encourage countries to spend very wisely. Strengthening prioritization in terms of spending, strengthening the efficiency of spending is important. Final important message we would like to give for Nigeria but also for other countries is that fiscal institutions are very important. Having a medium‑term fiscal framework, Public Financial Management are key important because on the one hand they try to help the fiscal anchor, so they set apart for the fiscal adjustment, but also reduce the fiscal uncertainty per se. So as Vitor mentioned, we want the fiscal to be a source of stability and not a source of uncertainty, and that is where fiscal institutions have an important role to play.

    The Moderator: Thank you. Very quickly, Era.

    Ms. Era Dabla‑Norris: On ASEAN, there is a huge variation in fiscal positions across the region. On average, the ASEAN region debt‑to‑GDP ratios are lower than they are in other emerging market and developing economies. That said, in Thailand, relative to the other countries in ASEAN, debt levels are slightly more elevated, over 60 percent of GDP. Our advice has been that fiscal policy should be prudent and parsimonious, given all the reasons we have discussed over the course of this morning. So, measures that are needed to smooth adjustment in light of higher tariffs should be thought of in a wise way, temporary, targeted measures in the context of tariff uncertainty, and ongoing consolidation plans implemented to bring debt down in a sustainable manner.

    The Moderator: Thank you very much

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Tatiana Mossot

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

    @IMFSpokesperson

    MIL OSI Economics –

    April 24, 2025

  • MIL-OSI Security: Pontiac Man Pleads Guilty in $4M Identity Theft and Unemployment Fraud Case

    Source: Office of United States Attorneys

    DETROIT – A Pontiac man has pleaded guilty to committing aggravated identity theft and wire fraud as part of large-scale, multi-state Unemployment Insurance benefit fraud scheme in which he and co-conspirators fraudulently obtained debit cards loaded with more than $4 million in Pandemic Unemployment Assistance funds, Acting United States Attorney Julie A. Beck announced today.

    Joining in the announcement were Megan Howell, Acting Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Division, Charles Miller, Special Agent-in-Charge, Internal Revenue Service – Criminal Investigations, Douglas Zloto, Special Agent-in-Charge, U.S. Secret Service, Sean McStravick, Acting Inspector-in-Charge, U.S. Postal Service, Office of Inspector General, and Director Jason Palmer, State of Michigan Unemployment Insurance Agency.

    Terrance Calhoun, Jr., 36, of Pontiac, Michigan, pleaded guilty to committing aggravated identity theft, wire fraud, conspiracy to commit wire fraud, and to possessing 15 or more unauthorized access devices, all in relation to acts of unemployment insurance fraud.

    According to his plea agreement, Calhoun Jr., and others, used stolen personal identification and filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Arizona, and Maryland over a six-month period in the names of other individuals without their knowledge or consent. Those false claims resulted in hundreds of debit cards loaded with over $4 million in unemployment insurance funds being mailed to addresses controlled by Calhoun Jr. and his co-conspirators. Roughly $1.6 million dollars in purchases and cash withdrawals were then successfully made from the cards.

    As described within a prior complaint, when agents executed search warrants at the principal mailing addresses used for the fraudulent unemployment insurance benefit claims, including the residence of Calhoun Jr., agents seized numerous documents containing the personal identification information of other individuals, multiple debit cards in the names of numerous other individuals, and firearms.

    Calhoun now faces a possible sentence of up to 20-years’ imprisonment for each of the wire fraud counts to which he has pleaded guilty, a possible sentence of up to 10-years’ imprisonment for possessing 15 or more unauthorized access devices, and a mandatorily consecutive 2-year sentence for the aggravated identity theft charge to which he has pleaded guilty.

    Sentencing is set for August 27, 2025 before United States District Court Judge Judith E. Levy.

    “Taxpayer money diverted into the pockets of criminals means less money going to Michiganders who actually need help getting through difficult financial times and who follow the rules when seeking assistance,” said Acting US Attorney Beck.  “These charges reflect our office’s ongoing commitment to the community by investigating such schemes and bringing those who commit these crimes to justice.”

    “Terrance Calhoun Jr and his co-conspirators engaged in a scheme to defraud state workforce agencies in Michigan, Arizona, and Maryland by filing hundreds of fraudulent unemployment insurance (UI) claims.  As a result, Calhoun enriched himself by stealing taxpayer resources intended for unemployed American workers.  We will continue to work with our law enforcement partners to protect the integrity of the UI program from those who seek to exploit it,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    “Individuals who commit identity theft and unemployment insurance fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation (IRS-CI).  “Terrance Calhoun, Jr. and Jermaine Arnett demonstrated a blatant disregard of the integrity of the multiple states’ unemployment insurance systems and caused immeasurable hardship to innocent victims. IRS-CI remains committed to the pursuit of identity theft and financial fraud, and together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar crimes accountable.”

    “The FBI in Michigan, alongside our law enforcement partners, remains steadfast in protecting the community and investigating individuals who violate federal law,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office. “Today’s guilty plea by Terrance Calhoun, whose involvement in a multi-state fraud scheme, is a clear reminder that bad actors will be stopped, and we will ensure integrity will prevail.”

    The case was jointly investigated by agents from the Department of Labor Office of the Inspector General, the Internal Revenue Service – Criminal Investigations Division, the Federal Bureau of Investigation, the Bureau of Immigration and Customs Enforcement, the United States Secret Service, the United States Postal Service Office of the Inspector General, and the State of Michigan -Unemployment Insurance Agency. The case is being prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan.

    MIL Security OSI –

    April 24, 2025

  • MIL-OSI: CVB Financial Corp. Reports Earnings for the First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025

    • Net Earnings of $51.1 million, or $0.36 per share
    • Return on Average Assets of 1.37%
    • Return on Average Tangible Common Equity of 14.51%
    • Net Interest Margin of 3.31%

    ONTARIO, CA, April 23, 2025 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended March 31, 2025.

    CVB Financial Corp. reported net income of $51.1 million for the quarter ended March 31, 2025, compared with $50.9 million for the fourth quarter of 2024 and $48.6 million for the first quarter of 2024. Diluted earnings per share were $0.36 for the first quarter, compared to $0.36 for the prior quarter and $0.35 for the same period last year.

    For the first quarter of 2025, annualized return on average equity (“ROAE”) was 9.31%, annualized return on average tangible common equity (“ROATCE”) was 14.51%, and an annualized return on average assets (“ROAA”) was 1.37%.

    David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “Citizens Business Bank’s performance in the first quarter demonstrates our continued financial strength and focus on our vision of serving the comprehensive financial needs of small to medium sized businesses and their owners. Our consistent financial performance is highlighted by our 192 consecutive quarters, or 48 years, of profitability, and our 142 consecutive quarters of paying cash dividends. I would like to thank our customers and associates for their continuing commitment and loyalty.”

    Highlights for the First Quarter of 2025

    • Pretax income was $69.5 million, up $1.5 million or 2%, from the prior quarter
    • Efficiency ratio of 46.7%
    • Net gain of $2.2 million on sale of $19.3 million of OREO assets
    • Net interest margin of 3.31%, increased by 13 basis points compared to the fourth quarter of 2024
    • Cost of funds decreased to 1.04% from 1.13% in the fourth quarter of 2024
    • Noninterest bearing deposits grew by $147 million from the end of 2024
    • Dairy and Livestock loans decreased by $168 million or 44% from the end of 2024
    • Net Recoveries of $130,000 and $2 million recapture of credit losses
    • TCE Ratio of 10.0% & CET1 Ratio of 16.5%

    INCOME STATEMENT HIGHLIGHTS

      Three Months Ended  
      March 31, 2025
    		   December 31, 2024
    		   March 31, 2024
    		  
      (Dollars in thousands, except per share amounts)  
    Net interest income $ 110,444     $ 110,418     $ 112,461    
    Recapure of (provision for) credit losses   2,000       3,000       –    
    Noninterest income   16,229       13,103       14,113    
    Noninterest expense   (59,144 )     (58,480 )     (59,771 )  
    Income taxes   (18,425 )     (17,183 )     (18,204 )  
    Net earnings $ 51,104     $ 50,858     $ 48,599    
    Earnings per common share:            
    Basic $ 0.37     $ 0.36     $ 0.35    
    Diluted $ 0.36     $ 0.36     $ 0.35    
                 
    NIM   3.31 %     3.18 %     3.10 %  
    ROAA   1.37 %     1.30 %     1.21 %  
    ROAE   9.31 %     9.14 %     9.31 %  
    ROATCE   14.51 %     14.31 %     15.13 %  
    Efficiency ratio   46.69 %     47.34 %     47.22 %  
                 

    Net Interest Income
    Net interest income was $110.4 million for the first quarter of 2025, essentially equal to the fourth quarter of 2024, and a $2.02 million, or 1.79%, decrease from the first quarter of 2024. Compared to the prior quarter, net interest income in the first quarter of 2025 was impacted by a 13-basis point increase in net interest margin that was offset by a $405.6 million decline in earning assets.

    The decline in net interest income of $2 million compared to the first quarter of 2024 was the net result of a $1.09 billion decline in earning assets partially offset by a 21-basis point increase in net interest margin. The decrease in earning assets was primarily due to the deleveraging strategy deployed in the second half of 2024, which resulted in the Company’s borrowings declining by $1.48 billion.

    Net Interest Margin
    Our tax equivalent net interest margin was 3.31% for the first quarter of 2025, compared to 3.18% for the fourth quarter of 2024 and 3.10% for the first quarter of 2024. The 13 basis points increase in our net interest margin compared to the fourth quarter of 2024, was the combined result of a four-basis point increase in our interest-earning assets and a nine-basis point decrease in our cost of funds, including a seven-basis point decrease in cost of deposits. The four-basis point increase in our interest-earning asset yield was primarily due to a seven-basis point increase in loan yields and a five-basis points increase in investment securities yields. We experienced an increase in yields on investments in the first quarter of 2025, as a result of the sale of lower-yielding available-for-sale (“AFS”) securities and the purchase of higher-yielding AFS securities during the fourth quarter of 2024. However, this increase in investment yields was partially offset by a decrease during the first quarter of 2025 in the positive carry on our fair value hedging instruments that pay a fixed interest rate while receiving daily SOFR.

    Net interest margin for the first quarter of 2025 increased by 21-basis points compared to the first quarter of 2024, primarily as a result of 27-basis point decrease in cost of funds from 1.31% for the first quarter of 2024 to 1.04% for the first quarter of 2025. The decrease in cost of funds was primarily due to a $1.48 billion decline in borrowings, which had an average cost of 4.76% in the first quarter of 2024. For the first quarter of 2025, the Company had average borrowings of $513 million at a cost of 4.61% and average deposits and customer repos of $12.19 billion at a cost of .87%, which compares to the first quarter of 2024 in which borrowings averaged $2 billion at a cost of 4.76% and average deposits and customer repos of $11.95 billion at a cost of .73%. The decrease in cost of funds was offset by lower interest earning asset yields that declined by 6 basis points from 4.34% in the first quarter of 2024 to 4.28% in the first quarter of 2025. The lower earning asset yields included lower loan yields, which declined from 5.30% for the first quarter of 2024 to 5.22% for the first quarter of 2025.

    Earning Assets and Deposits
    On average, earning assets decreased by $405.6 million compared to the fourth quarter of 2024 and declined by $1.09 billion when compared to the first quarter of 2024. The decline in earning assets from the fourth quarter of 2024 was primarily a $323 million decrease in funds held at the Federal Reserve, as well as a $55 million average decline in outstanding loans. Compared to the first quarter of 2024, the average balance of outstanding loans was $357 million lower, investment securities decreased by $449.0 million and the average amount of funds held at the Federal Reserve decreased by $272.0 million. Noninterest-bearing deposits declined on average by $109.7 million, or 1.54%, from the fourth quarter of 2024 and interest-bearing deposits and customer repurchase agreements declined on average by $270.9 million. Compared to the first quarter of 2024, total deposits and customer repurchase agreements increased on average by $243.9 million, or 2.04%, including an increase of $420.2 million in interest-bearing deposits and customer repurchase agreements. On average, noninterest-bearing deposits were 59.01% of total deposits during the most recent quarter, compared to 58.74% for the fourth quarter of 2024 and 61.72% for the first quarter of 2024.

        Three Months Ended  
    SELECTED FINANCIAL HIGHLIGHTS March 31, 2025   December 31, 2024   March 31, 2024  
        (Dollars in thousands)  
    Yield on average investment securities (TE)   2.63%       2.58%       2.64%    
    Yield on average loans   5.22%       5.15%       5.30%    
    Yield on average earning assets (TE)   4.28%       4.24%       4.34%    
    Cost of deposits   0.86%       0.93%       0.74%    
    Cost of funds   1.04%       1.13%       1.31%    
    Net interest margin (TE)   3.31%       3.18%       3.10%    
                               
    Average Earning Asset Mix Avg   % of Total   Avg   % of Total   Avg   % of Total
      Total investment securities $ 4,908,718   36.21 %   $ 4,936,514   35.36 %   $ 5,357,708   36.59 %  
      Interest-earning deposits with other institutions   162,389   1.20 %     485,103   3.47 %     444,101   3.03 %  
      Loans   8,467,465   62.46 %     8,522,587   61.04 %     8,824,579   60.26 %  
      Total interest-earning assets   13,556,584         13,962,216         14,644,400      
                               


    Provision for Credit Losses
    There was a $2.0 million recapture of provision for credit losses in the first quarter of 2025, compared to a $3.0 million recapture of provision for credit losses in the fourth quarter of 2024 and no provision in the first quarter of 2024. Net recoveries for the first quarter of 2025 were $130,000 compared to net recoveries of $180,000 in the prior quarter. Allowance for credit losses represented 0.94% of gross loans at March 31, 2025 and December 31, 2024.

    Noninterest Income
    Noninterest income was $16.2 million for the first quarter of 2025, compared with $13.1 million for the fourth quarter of 2024 and $14.1 million for the first quarter of 2024. During the first quarter of 2025, the Bank sold four OREO properties resulting in a gain of $2.2 million. Income from Bank Owned Life Insurance (“BOLI”) increased in the first quarter of 2025 by $445,000 from the fourth quarter of 2024 and decreased by $762,000 compared to the first quarter of 2024. Compared to the fourth quarter of 2024 and the first quarter of 2024, income from various equity investments increased by $750,000 and $450,000, respectively.

    Noninterest Expense
    Noninterest expense for the first quarter of 2025 was $59.1 million, compared to $58.5 million for the fourth quarter of 2024 and $59.8 million for the first quarter of 2024. The $664,000 quarter-over-quarter increase includes a $500,000 provision for unfunded loan commitments in the first quarter of 2025, compared to no provision or recapture of provision in the first and fourth quarter of 2024. Salaries and employee benefit costs increased $479,000, as the first quarter of each calendar year reflects higher payroll taxes than the fourth quarter of the prior year. Offsetting those quarter-over-quarter increases was a decline in legal expenses of $326,000.

    The year-over-year decrease in noninterest expense of $627,000 was impacted by the higher level of assessment expense in the first quarter of 2024, in which we had an additional accrual of $2.3 million associated with the 2023 FDIC special assessment. The decline in assessment expense was offset by increases in software expenses of $696,000 and occupancy expenses of $433,000, as well as the $500,000 recapture of provision for unfunded loan commitments in the first quarter of 2025. As a percentage of average assets, noninterest expense was 1.58% for the first quarter of 2025, compared to 1.49% for the fourth quarter of 2024 and 1.48% for the first quarter of 2024. The efficiency ratio for the first quarter of 2025 was 46.69%, compared to 47.34% for the fourth quarter of 2024 and 47.22% for the first quarter of 2024.

    Income Taxes
    Our effective tax rate for the quarter ended March 31, 2025 was 26.50%, compared with 25.25% for the fourth quarter of 2024, and 27.25% for the same period of 2024. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

    BALANCE SHEET HIGHLIGHTS

    Assets
    The Company reported total assets of $15.26 billion at March 31, 2025. This represented an increase of $102.9 million, or 0.68%, from total assets of $15.15 billion at December 31, 2024. The increase in assets included a $290.3 million increase in interest-earning balances due from the Federal Reserve, offset by a $27.6 million decrease in investment securities, and a $170.9 million decrease in net loans.

    Total assets at March 31, 2025 decreased by $1.2 billion, or 7.36%, from total assets of $16.47 billion at March 31, 2024. The decrease in assets was primarily due to a decrease of $476.5 million in interest-earning balances due from the Federal Reserve, a decrease of $397.5 million in investment securities and a $402.5 million decrease in net loans.

    Investment Securities
    Total investment securities were $4.89 billion at March 31, 2025, a decrease of $27.6 million, or 0.56% from December 31, 2024, and a decrease of $397.5 million, or 7.51%, from $5.29 billion at March 31, 2024.  

    At March 31, 2025, investment securities held-to-maturity (“HTM”) totaled $2.36 billion, a decrease of $20.5 million, or 0.86% from December 31, 2024, and a decrease of $95.4 million, or 3.89%, from March 31, 2024.

    At March 31, 2025, investment securities available-for-sale (“AFS”) totaled $2.54 billion, inclusive of a pre-tax net unrealized loss of $338.4 million. AFS securities decreased by $7.0 million, or 0.28% from December 31, 2024 and decreased by $302.0 million, or 10.65%, from $2.84 billion at March 31, 2024. The pre-tax unrealized loss decreased by $58.9 million from December 31, 2024 and decreased by $97.2 million from March 31, 2024.

    Loans
    Total loans and leases, at amortized cost, of $8.36 billion at March 31, 2025 decreased by $172.8 million, or 2.02%, from December 31, 2024. The quarter-over quarter decrease in loans included decreases of $16.8 million in commercial real estate loans and $167.8 million in dairy & livestock loans, partially offset by an increase of $17.1 million in commercial and industrial loans.

    Total loans and leases, at amortized cost, decreased by $407.1 million, or 4.64%, from March 31, 2024. The $407.1 million decrease included decreases of $229.9 million in commercial real estate loans, $43.1 million in construction loans, $20.8 million in commercial and industrial loans, $99.1 million in dairy & livestock and agribusiness loans, $6.8 million in municipal lease financings, and $7.0 million in SFR mortgage loans.

    Asset Quality
    During the first quarter of 2025, we experienced credit charge-offs of $40,000 and total recoveries of $170,000, resulting in net recoveries of $130,000. The allowance for credit losses (“ACL”) totaled $78.3 million at March 31, 2025, compared to $80.1 million at December 31, 2024 and $82.8 million at March 31, 2024. At March 31, 2025, ACL as a percentage of total loans and leases outstanding was 0.94%. This compares to 0.94% and 0.94% at December 31, 2024 and March 31, 2024, respectively.

    Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

    Nonperforming Assets and Delinquency Trends March 31, 2025
    		   December 31, 2024
    		   March 31, 2024
    Nonperforming loans   (Dollars in thousands)
    Commercial real estate   $ 24,379     $ 25,866     $ 10,661  
    SBA     1,024       1,529       54  
    Commercial and industrial     173       340       2,727  
    Dairy & livestock and agribusiness     60       60       60  
    SFR mortgage     –       –       308  
    Consumer and other loans     –       –       –  
    Total   $ 25,636     $ 27,795     $ 13,810  
    % of Total loans     0.31 %     0.33 %     0.16 %
    OREO            
    Commercial real estate   $ 495     $ 18,656     $ –  
    Commercial and industrial     –       –       647  
    SFR mortgage     –       647       –  
    Total   $ 495     $ 19,303     $ 647  
                 
    Total nonperforming assets   $ 26,131     $ 47,098     $ 14,457  
    % of Nonperforming assets to total assets     0.17 %     0.31 %     0.09 %
                 
    Past due 30-89 days (accruing)            
    Commercial real estate   $ –     $ –     $ 19,781  
    SBA     718       88       408  
    Commercial and industrial     –       399       6  
    Dairy & livestock and agribusiness     –       –       –  
    SFR mortgage     –       –       –  
    Consumer and other loans     –       –       –  
    Total   $ 718     $ 487     $ 20,195  
    % of Total loans     0.01 %     0.01 %     0.23 %
    Total nonperforming, OREO, and past due   $ 26,849     $ 47,585     $ 34,652  
                 
    Classified Loans   $ 94,169     $ 89,549     $ 103,080  
     

    The $21.0 million decrease in nonperforming assets from December 31, 2024 was primarily due to the sale of $19.3 million of OREO at a net gain of $2.2 million during the first quarter of 2025. Classified loans are loans that are graded “substandard” or worse. Classified loans increased $4.6 million quarter-over-quarter, primarily due to increases of $6.5 million in classified dairy and livestock loans.

    Deposits & Customer Repurchase Agreements
    Deposits of $12.0 billion and customer repurchase agreements of $276.2 million totaled $12.27 billion at March 31, 2025. This represented a net increase of $55.8 million compared to December 31, 2024. Total deposits and customer repurchase agreements increased $95.4 million, or .78% when compared to $12.17 billion at March 31, 2024.

    Noninterest-bearing deposits were $7.18 billion at March 31, 2025, an increase of $147.2 million, or 2.09%, when compared to $7.04 billion at December 31, 2024. Noninterest-bearing deposits increased by $71.5 million, or 1.00% when compared to $7.11 billion at March 31, 2024. At March 31, 2025, noninterest-bearing deposits were 59.92% of total deposits, compared to 58.90% at December 31, 2024 and 59.80% at
    March 31, 2024.

    Borrowings
    As of March 31, 2025, total borrowings consisted of $500 million of FHLB advances. The FHLB advances include maturities of $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027. Total borrowings decreased by $1.5 billion from March 31, 2024. The $2.0 billion of borrowings at March 31, 2024 consisted of one-year advances from the Federal Reserve’s Bank Term Funding Program, at an average cost of approximately 4.75%, all of which were redeemed before the end of 2024.

    Capital
    The Company’s total equity was $2.23 billion at March 31, 2025. This represented an overall increase of $42.1 million from total equity of $2.19 billion at December 31, 2024. Increases to equity included $51.1 million in net earnings and a $34.8 million increase in other comprehensive income that were partially offset by $27.9 million in cash dividends. During the first quarter of 2025, we repurchased, under our stock repurchase plan, 782,063 shares of common stock, at an average repurchase price of $19.55, totaling $15.3 million.   Our tangible book value per share at March 31, 2025 was $10.45.

    Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards.

            CVB Financial Corp. Consolidated  
    Capital Ratios   Minimum Required Plus Capital Conservation Buffer   March 31, 2025   December 31, 2024   March 31, 2024  
                       
    Tier 1 leverage capital ratio   4.0%   11.8%   11.5%   10.5%  
    Common equity Tier 1 capital ratio   7.0%   16.5%   16.2%   14.9%  
    Tier 1 risk-based capital ratio   8.5%   16.5%   16.2%   14.9%  
    Total risk-based capital ratio   10.5%   17.3%   17.1%   15.8%  
                       
    Tangible common equity ratio       10.0%   9.8%   8.3%  
                       

    CitizensTrust
    As of March 31, 2025 CitizensTrust had approximately $4.7 billion in assets under management and administration, including $3.38 billion in assets under management. Revenues were $3.4 million for the first quarter of 2025, compared to $3.5 million in the fourth quarter of 2024 and $3.2 million for the first quarter of 2024. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

    Corporate Overview
    CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

    Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

    Conference Call

    Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, April 24, 2025, to discuss the Company’s first quarter 2025 financial results. The conference call can be accessed live by registering at: https://register-conf.media-server.com/register/BI643a97d119af4b899539fee84f093408

    The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

    Safe Harbor
    Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, the impact of monetary, fiscal and trade policies, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

    General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, immigration, trade, tariff, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target and key personnel into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the transition away from USD LIBOR and uncertainties regarding potential alternative reference rates, including SOFR; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state in employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing.

    Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2024 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

    The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

    Contact:
    David A. Brager
    President and Chief Executive Officer
    (909) 980-4030

    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
                 
                 
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Assets            
    Cash and due from banks   $ 187,981     $ 153,875     $ 131,955  
    Interest-earning balances due from Federal Reserve     341,108       50,823       817,634  
    Total cash and cash equivalents     529,089       204,698       949,589  
    Interest-earning balances due from depository institutions     3,451       480       12,632  
    Investment securities available-for-sale     2,535,066       2,542,115       2,837,100  
    Investment securities held-to-maturity     2,359,141       2,379,668       2,454,586  
    Total investment securities     4,894,207       4,921,783       5,291,686  
    Investment in stock of Federal Home Loan Bank (FHLB)     18,012       18,012       18,012  
    Loans and lease finance receivables     8,363,632       8,536,432       8,770,713  
    Allowance for credit losses     (78,252 )     (80,122 )     (82,817 )
    Net loans and lease finance receivables     8,285,380       8,456,310       8,687,896  
    Premises and equipment, net     26,772       27,543       43,448  
    Bank owned life insurance (BOLI)     318,301       316,248       310,744  
    Intangibles     8,812       9,967       13,853  
    Goodwill     765,822       765,822       765,822  
    Other assets     406,745       432,792       374,464  
    Total assets   $ 15,256,591     $ 15,153,655     $ 16,468,146  
    Liabilities and Stockholders’ Equity            
    Liabilities:            
    Deposits:            
    Noninterest-bearing   $ 7,184,267     $ 7,037,096     $ 7,112,789  
    Investment checking     533,220       551,305       545,066  
    Savings and money market     3,710,612       3,786,387       3,561,512  
    Time deposits     561,822       573,593       675,554  
    Total deposits     11,989,921       11,948,381       11,894,921  
    Customer repurchase agreements     276,163       261,887       275,720  
    Other borrowings     500,000       500,000       1,995,000  
    Other liabilities     262,088       257,071       215,680  
    Total liabilities     13,028,172       12,967,339       14,381,321  
    Stockholders’ Equity            
    Stockholders’ equity     2,505,719       2,498,380       2,422,110  
    Accumulated other comprehensive loss, net of tax     (277,300 )     (312,064 )     (335,285 )
    Total stockholders’ equity     2,228,419       2,186,316       2,086,825  
    Total liabilities and stockholders’ equity   $ 15,256,591     $ 15,153,655     $ 16,468,146  
                 
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
                 
                 
        Three Months Ended
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Assets            
    Cash and due from banks   $ 154,328     $ 152,966     $ 162,049  
    Interest-earning balances due from Federal Reserve     161,432       484,038       433,421  
    Total cash and cash equivalents     315,760       637,004       595,470  
    Interest-earning balances due from depository institutions     957       1,065       10,680  
    Investment securities available-for-sale     2,539,211       2,542,649       2,900,097  
    Investment securities held-to-maturity     2,369,507       2,393,865       2,457,611  
    Total investment securities     4,908,718       4,936,514       5,357,708  
    Investment in stock of FHLB     18,012       18,012       18,012  
    Loans and lease finance receivables     8,467,465       8,522,587       8,824,579  
    Allowance for credit losses     (80,113 )     (82,960 )     (85,751 )
    Net loans and lease finance receivables     8,387,352       8,439,627       8,738,828  
    Premises and equipment, net     27,408       29,959       44,380  
    Bank owned life insurance (BOLI)     316,643       316,938       309,609  
    Intangibles     9,518       10,650       14,585  
    Goodwill     765,822       765,822       765,822  
    Other assets     419,116       406,898       350,319  
    Total assets   $ 15,169,306     $ 15,562,489     $ 16,205,413  
    Liabilities and Stockholders’ Equity            
    Liabilities:            
    Deposits:            
    Noninterest-bearing   $ 7,006,357     $ 7,116,050     $ 7,182,718  
    Interest-bearing     4,866,318       4,998,424       4,454,135  
    Total deposits     11,872,675       12,114,474       11,636,853  
    Customer repurchase agreements     317,322       456,145       309,272  
    Other borrowings     513,078       500,000       1,991,978  
    Other liabilities     239,283       278,314       168,442  
    Total liabilities     12,942,358       13,348,933       14,106,545  
    Stockholders’ Equity            
    Stockholders’ equity     2,523,923       2,507,060       2,432,075  
    Accumulated other comprehensive loss, net of tax     (296,975 )     (293,504 )     (333,207 )
    Total stockholders’ equity     2,226,948       2,213,556       2,098,868  
    Total liabilities and stockholders’ equity   $ 15,169,306     $ 15,562,489     $ 16,205,413  
                 
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
                 
                 
        Three Months Ended
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Interest income:            
    Loans and leases, including fees   $ 109,071     $ 110,277     $ 116,349  
    Investment securities:            
    Investment securities available-for-sale     18,734       18,041       21,446  
    Investment securities held-to-maturity     13,021       13,020       13,402  
    Total investment income     31,755       31,061       34,848  
    Dividends from FHLB stock     379       380       419  
    Interest-earning deposits with other institutions     1,797       5,881       6,073  
    Total interest income     143,002       147,599       157,689  
    Interest expense:            
    Deposits     25,322       28,317       21,366  
    Borrowings and customer repurchase agreements     6,800       8,291       23,862  
    Other     436       573       –  
    Total interest expense     32,558       37,181       45,228  
    Net interest income before (recapture of) provision for credit losses     110,444       110,418       112,461  
    (Recapture of) provision for credit losses     (2,000 )     (3,000 )     –  
    Net interest income after (recapture of) provision for credit losses     112,444       113,418       112,461  
    Noninterest income:            
    Service charges on deposit accounts     4,908       5,097       5,036  
    Trust and investment services     3,411       3,512       3,224  
    Loss on sale of AFS investment securities     –       (16,735 )     –  
    Gain on OREO, net     2,183       –       –  
    Gain on sale leaseback transactions     –       16,794       –  
    Other     5,727       4,435       5,853  
    Total noninterest income     16,229       13,103       14,113  
    Noninterest expense:           .
    Salaries and employee benefits     36,477       35,998       36,401  
    Occupancy and equipment     5,998       5,866       5,565  
    Professional services     2,081       2,646       2,255  
    Computer software expense     4,221       3,921       3,525  
    Marketing and promotion     1,988       1,757       1,630  
    Amortization of intangible assets     1,155       1,163       1,438  
    Provision for unfunded loan commitments     500       –       –  
    Other     6,724       7,129       8,957  
    Total noninterest expense     59,144       58,480       59,771  
    Earnings before income taxes     69,529       68,041       66,803  
    Income taxes     18,425       17,183       18,204  
    Net earnings   $ 51,104     $ 50,858     $ 48,599  
                 
    Basic earnings per common share   $ 0.37     $ 0.36     $ 0.35  
    Diluted earnings per common share   $ 0.36     $ 0.36     $ 0.35  
    Cash dividends declared per common share   $ 0.20     $ 0.20     $ 0.20  
                 
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
                 
        Three Months Ended
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Interest income – tax equivalent (TE)   $ 143,525     $ 148,128     $ 158,228  
    Interest expense     32,558       37,181       45,228  
    Net interest income – (TE)   $ 110,967     $ 110,947     $ 113,000  
                 
    Return on average assets, annualized     1.37 %     1.30 %     1.21 %
    Return on average equity, annualized     9.31 %     9.14 %     9.31 %
    Efficiency ratio [1]     46.69 %     47.34 %     47.22 %
    Noninterest expense to average assets, annualized     1.58 %     1.49 %     1.48 %
    Yield on average loans     5.22 %     5.15 %     5.30 %
    Yield on average earning assets (TE)     4.28 %     4.24 %     4.34 %
    Cost of deposits     0.86 %     0.93 %     0.74 %
    Cost of deposits and customer repurchase agreements     0.87 %     0.97 %     0.73 %
    Cost of funds     1.04 %     1.13 %     1.31 %
    Net interest margin (TE)     3.31 %     3.18 %     3.10 %
    [1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.
                 
    Tangible Common Equity Ratio (TCE) [2]            
    CVB Financial Corp. Consolidated     10.04 %     9.81 %     8.33 %
    Citizens Business Bank     9.92 %     9.64 %     8.23 %
    [2] (Capital – [GW+Intangibles])/(Total Assets – [GW+Intangibles])
                 
    Weighted average shares outstanding            
    Basic     138,973,996       138,661,665       138,428,596  
    Diluted     139,294,401       139,102,524       138,603,324  
    Dividends declared   $ 27,853     $ 27,978     $ 27,886  
    Dividend payout ratio [3]     54.50 %     55.01 %     57.38 %
    [3] Dividends declared on common stock divided by net earnings.
                 
    Number of shares outstanding – (end of period)     139,089,612       139,689,686       139,641,884  
    Book value per share   $ 16.02     $ 15.65     $ 14.94  
    Tangible book value per share   $ 10.45     $ 10.10     $ 9.36  
                 
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
           
    Nonperforming assets:            
    Nonaccrual loans   $ 25,636     $ 27,795     $ 13,810  
    Other real estate owned (OREO), net     495       19,303       647  
    Total nonperforming assets   $ 26,131     $ 47,098     $ 14,457  
    Modified loans/performing troubled debt restructured loans (TDR) [4]   $ 11,949     $ 6,467     $ 10,765  
                 
    [4] Effective January 1, 2023, performing and nonperforming TDRs are reflected as Loan Modifications to borrowers experiencing financial difficulty.
                 
    Percentage of nonperforming assets to total loans outstanding and OREO     0.31 %     0.55 %     0.16 %
    Percentage of nonperforming assets to total assets     0.17 %     0.31 %     0.09 %
    Allowance for credit losses to nonperforming assets     299.46 %     170.12 %     572.85 %
                 
        Three Months Ended
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Allowance for credit losses:            
    Beginning balance   $ 80,122     $ 82,942     $ 86,842  
    Total charge-offs     (40 )     (64 )     (4,267 )
    Total recoveries on loans previously charged-off     170       244       242  
    Net recoveries (charge-offs)     130       180       (4,025 )
    (Recapture of) provision for credit losses     (2,000 )     (3,000 )     –  
    Allowance for credit losses at end of period   $ 78,252     $ 80,122     $ 82,817  
                 
    Net recoveries (charge-offs) to average loans     0.002 %     0.002 %     -0.046 %
                             
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in millions)
                                   
    Allowance for Credit Losses by Loan Type                          
                                   
        March 31, 2025   December 31, 2024   March 31, 2024
        Allowance
    For Credit
    Losses    		   Allowance
    as a % of
    Total Loans
    by Respective
    Loan Type    		   Allowance
    For Credit
    Losses    		   Allowance
    as a % of
    Total Loans
    by Respective
    Loan Type    		   Allowance
    For Credit
    Losses    		   Allowance
    as a % of
    Total Loans
    by Respective
    Loan Type
                                   
    Commercial real estate   $ 65.3       1.01 %   $ 66.2       1.02 %   $ 69.4       1.03 %
    Construction     0.2       1.52 %     0.3       1.94 %     1.3       2.20 %
    SBA     2.6       0.96 %     2.6       0.96 %     2.5       0.94 %
    Commercial and industrial     6.1       0.65 %     6.1       0.66 %     5.1       0.53 %
    Dairy & livestock and agribusiness     2.8       1.12 %     3.6       0.86 %     3.3       0.92 %
    Municipal lease finance receivables     0.2       0.32 %     0.2       0.31 %     0.2       0.27 %
    SFR mortgage     0.5       0.16 %     0.5       0.16 %     0.5       0.17 %
    Consumer and other loans     0.6       0.94 %     0.6       1.04 %     0.5       0.97 %
                                   
    Total   $ 78.3       0.94 %   $ 80.1       0.94 %   $ 82.8       0.94 %
                                   
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
                             
    Quarterly Common Stock Price
                             
          2025       2024       2023  
    Quarter End   High   Low   High   Low   High   Low
    March 31,   $ 21.71     $ 18.22     $ 20.45     $ 15.95     $ 25.98     $ 16.34  
    June 30,   $ –     $ –     $ 17.91     $ 15.71     $ 16.89     $ 10.66  
    September 30,   $ –     $ –     $ 20.29     $ 16.08     $ 19.66     $ 12.89  
    December 31,   $ –     $ –     $ 24.58     $ 17.20     $ 21.77     $ 14.62  
                             
    Quarterly Consolidated Statements of Earnings
                             
            Q1   Q4   Q3   Q2   Q1
              2025       2024       2024       2024       2024  
    Interest income                        
    Loans and leases, including fees       $ 109,071     $ 110,277     $ 114,929     $ 114,200     $ 116,349  
    Investment securities and other         33,931       37,322       50,823       44,872       41,340  
    Total interest income         143,002       147,599       165,752       159,072       157,689  
    Interest expense                        
    Deposits         25,322       28,317       29,821       25,979       21,366  
    Borrowings and customer repurchase agreements     6,800       8,291       22,312       22,244       23,862  
    Other         436       573       –       –       –  
    Total interest expense         32,558       37,181       52,133       48,223       45,228  
    Net interest income before (recapture of)                    
    provision for credit losses         110,444       110,418       113,619       110,849       112,461  
    (Recapture of) provision for credit losses     (2,000 )     (3,000 )     –       –       –  
    Net interest income after (recapture of)                    
    provision for credit losses         112,444       113,418       113,619       110,849       112,461  
                             
    Noninterest income         16,229       13,103       12,834       14,424       14,113  
    Noninterest expense         59,144       58,480       58,835       56,497       59,771  
    Earnings before income taxes         69,529       68,041       67,618       68,776       66,803  
    Income taxes         18,425       17,183       16,394       18,741       18,204  
    Net earnings       $ 51,104     $ 50,858     $ 51,224     $ 50,035     $ 48,599  
                             
    Effective tax rate         26.50 %     25.25 %     24.25 %     27.25 %     27.25 %
                             
    Basic earnings per common share       $ 0.37     $ 0.36     $ 0.37     $ 0.36     $ 0.35  
    Diluted earnings per common share     $ 0.36     $ 0.36     $ 0.37     $ 0.36     $ 0.35  
                             
    Cash dividends declared per common share   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20  
                             
    Cash dividends declared       $ 27,853     $ 27,978     $ 27,977     $ 28,018     $ 27,886  
                             
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
                         
    Loan Portfolio by Type
        March 31,   December 31,   September 30,
    		   June 30,   March 31,
          2025       2024       2024       2024       2024  
                         
    Commercial real estate   $ 6,490,604     $ 6,507,452     $ 6,618,637     $ 6,664,925     $ 6,720,538  
    Construction     15,706       16,082       14,755       52,227       58,806  
    SBA     271,844       273,013       272,001       267,938       268,320  
    SBA – PPP     179       774       1,255       1,757       2,249  
    Commercial and industrial     942,301       925,178       936,489       956,184       963,120  
    Dairy & livestock and agribusiness     252,532       419,904       342,445       350,562       351,624  
    Municipal lease finance receivables     65,203       66,114       67,585       70,889       72,032  
    SFR mortgage     269,493       269,172       267,181       267,593       276,475  
    Consumer and other loans     55,770       58,743       52,217       49,771       57,549  
    Gross loans, at amortized cost     8,363,632       8,536,432       8,572,565       8,681,846       8,770,713  
    Allowance for credit losses     (78,252 )     (80,122 )     (82,942 )     (82,786 )     (82,817 )
    Net loans   $ 8,285,380     $ 8,456,310     $ 8,489,623     $ 8,599,060     $ 8,687,896  
                         
                         
                         
    Deposit Composition by Type and Customer Repurchase Agreements
                         
        March 31,   December 31,   September 30,
    		   June 30,   March 31,
          2025       2024       2024       2024       2024  
                         
    Noninterest-bearing   $ 7,184,267     $ 7,037,096     $ 7,136,824     $ 7,090,095     $ 7,112,789  
    Investment checking     533,220       551,305       504,028       515,930       545,066  
    Savings and money market     3,710,612       3,786,387       3,745,707       3,409,320       3,561,512  
    Time deposits     561,822       573,593       685,930       774,980       675,554  
    Total deposits     11,989,921       11,948,381       12,072,489       11,790,325       11,894,921  
                         
    Customer repurchase agreements     276,163       261,887       394,515       268,826       275,720  
    Total deposits and customer repurchase agreements   $ 12,266,084     $ 12,210,268     $ 12,467,004     $ 12,059,151     $ 12,170,641  
                         
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
                         
    Nonperforming Assets and Delinquency Trends
        March 31,   December 31,   September 30,
    		   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Nonperforming loans:                    
    Commercial real estate   $ 24,379     $ 25,866     $ 18,794     $ 21,908     $ 10,661  
    Construction     –       –       –       –       –  
    SBA     1,024       1,529       151       337       54  
    Commercial and industrial     173       340       2,825       2,712       2,727  
    Dairy & livestock and agribusiness     60       60       143       –       60  
    SFR mortgage     –       –       –       –       308  
    Consumer and other loans     –       –       –       –       –  
    Total   $ 25,636     $ 27,795     $ 21,913     $ 24,957     $ 13,810  
    % of Total loans     0.31 %     0.33 %     0.26 %     0.29 %     0.16 %
                         
    Past due 30-89 days (accruing):                    
    Commercial real estate   $ –     $ –     $ 30,701     $ 43     $ 19,781  
    Construction     –       –       –       –       –  
    SBA     718       88       –       –       408  
    Commercial and industrial     –       399       64       103       6  
    Dairy & livestock and agribusiness     –       –       –       –       –  
    SFR mortgage     –       –       –       –       –  
    Consumer and other loans     –       –       –       –       –  
    Total   $ 718     $ 487     $ 30,765     $ 146     $ 20,195  
    % of Total loans     0.01 %     0.01 %     0.36 %     0.00 %     0.23 %
                         
    OREO:                    
    Commercial real estate   $ 495     $ 18,656     $ –     $ –     $ –  
    SBA     –       –       –       –       –  
    Commercial and industrial     –       –       –       –       –  
    SFR mortgage     –       647       647       647       647  
    Total   $ 495     $ 19,303     $ 647     $ 647     $ 647  
    Total nonperforming, past due, and OREO   $ 26,849     $ 47,585     $ 53,325     $ 25,750     $ 34,652  
    % of Total loans     0.32 %     0.56 %     0.62 %     0.30 %     0.40 %
     
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
                     
    Regulatory Capital Ratios
                     
                     
                     
            CVB Financial Corp. Consolidated
    Capital Ratios   Minimum Required Plus
    Capital Conservation Buffer    		   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
                     
    Tier 1 leverage capital ratio     4.0 %     11.8 %     11.5 %     10.5 %
    Common equity Tier 1 capital ratio     7.0 %     16.5 %     16.2 %     14.9 %
    Tier 1 risk-based capital ratio     8.5 %     16.5 %     16.2 %     14.9 %
    Total risk-based capital ratio     10.5 %     17.3 %     17.1 %     15.8 %
                     
    Tangible common equity ratio         10.0 %     9.8 %     8.3 %
                     
    Tangible Book Value Reconciliations (Non-GAAP)
                           
    The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of tangible book value to the Company stockholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of March 31, 2025, December 31, 2024 and March 31, 2024.
     
     
        March 31,
    2025    		       December 31,
    2024    		       March 31,
    2024    		  
        (Dollars in thousands, except per share amounts)
                           
    Stockholders’ equity $ 2,228,419     $ 2,186,316     $ 2,086,825  
    Less: Goodwill   (765,822 )     (765,822 )     (765,822 )
    Less: Intangible assets   (8,812 )     (9,967 )     (13,853 )
    Tangible book value $ 1,453,785     $ 1,410,527     $ 1,307,150  
    Common shares issued and outstanding   139,089,612       139,689,686       139,641,884  
    Tangible book value per share $ 10.45     $ 10.10     $ 9.36  
     
    Return on Average Tangible Common Equity Reconciliations (Non-GAAP)
     
    The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company’s average stockholders’ equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.
                             
                             
        Three Months Ended
          March 31,       December 31,       March 31,    
          2025       2024       2024    
        (Dollars in thousands)    
                               
    Net Income   $ 51,104     $ 50,858     $ 48,599    
    Add: Amortization of intangible assets     1,155       1,163       1,438    
    Less: Tax effect of amortization of intangible assets (1)     (341 )     (344 )     (425 )  
    Tangible net income   $ 51,918     $ 51,677     $ 49,612    
                               
    Average stockholders’ equity   $ 2,226,948     $ 2,213,556     $ 2,098,868    
    Less: Average goodwill     (765,822 )     (765,822 )     (765,822 )  
    Less: Average intangible assets     (9,518 )     (10,650 )     (14,585 )  
    Average tangible common equity   $ 1,451,608     $ 1,437,084     $ 1,318,461    
                               
    Return on average equity, annualized (2)     9.31 %     9.14 %     9.31 %  
    Return on average tangible common equity, annualized (2)     14.51 %     14.31 %     15.13 %  
                               
                               
    (1) Tax effected at respective statutory rates.                          
    (2) Annualized where applicable.                          

    The MIL Network –

    April 24, 2025

  • MIL-OSI USA: Oregon State Treasury Completes Total Of $1.48 Billion In Bond Sales Despite Historic Market Instability

    Source: US State of Oregon

    ast week, the Oregon State Treasury successfully completed two major bond sales through its Buy Oregon Bonds Program, providing nearly $1.5 billion for statewide projects and programs, including affordable housing, educational facility improvements, pollution control, and agricultural grant programs.

    “Oregon bonds continue to attract strong investor demand, offering a solid investment opportunity even amid ongoing volatility in national financial markets driven by federal policy shifts and tariff-related challenges,” said Oregon State Treasurer Elizabeth Steiner, MD. “The strong performance and investor response to these offerings demonstrates Oregon’s fiscal resilience and Treasury’s thoughtful stewardship of the state’s debt.”

    Amid historic market instability not seen since the COVID-19 pandemic, Treasury’s Debt Management team worked closely with financial partners to monitor conditions and time the sales for optimal results. This diligent work, combined with the state’s strong credit ratings, contributed to the oversubscription of both sales and secured low-cost financing, saving Oregon millions of dollars.

    The first sale, a $925 million General Obligation Bond issuance, featured 3rd-party verified Sustainability Bonds and lower denomination offerings to broaden investor participation. Proceeds from this sale will fund approximately 20 projects and programs across 12 state agencies, including affordable housing, pollution control, and capital improvements to the State Capitol, K-12 schools, public universities, and other state facilities.

    The sale’s Sustainability Bonds component, totaling $301 million, will support Oregon’s Permanent Supportive Housing and Local Innovation and Fast Track Housing Programs. Kestrel, an approved verifier accredited by the Climate Bonds Initiative, awarded the accreditation following an independent external review, in which they determined the projects and associated Series B Bonds would address housing needs in Oregon, meet green building requirements, and advance Oregon’s goal of reducing statewide energy consumption and greenhouse gas emissions.

    Later in the week, Treasury took advantage of another favorable market window to issue $555 million in Lottery Revenue Bonds. These proceeds will support approximately 34 projects and programs from nine (9) state agencies. Fund projects include city and community college capital improvements, such as the construction of a new ballpark for the Hillsboro Hops minor league baseball team and renovations to the Center for Native Arts And Cultures, as well as seismic improvements to transportation infrastructure and statewide programs like the agricultural irrigation modernization grants program.

    The sale also included a $250 million refunding of existing state debt component to reduce debt service costs and increase capacity for future infrastructure investments. The refunding is projected to yield approximately $11.2 million in present value savings.

    “The proceeds from these bond sales will support vital projects that improve the quality of life for Oregonians, invest in our schools, expand affordable housing, and strengthen our state’s infrastructure,” said Treasurer Steiner. “These investments reflect Oregon’s commitment to developing resilient communities and promoting the well-being of Oregonians.”

    For more information about the Buy Oregon Bonds Program and upcoming bond offerings visit: www.BuyOregonBonds.com

    MIL OSI USA News –

    April 24, 2025

  • MIL-OSI: Live Oak Bancshares, Inc. Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, N.C., April 23, 2025 (GLOBE NEWSWIRE) — Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported first quarter of 2025 net income attributable to the Company of $9.7 million, or $0.21 per diluted share.

    Live Oak’s performance in the quarter compared to the fourth quarter of 2024, includes these notable items:

    • Record first quarter production of $1.40 billion accompanied by strong deposit growth of $635.5 million, with total assets growing by 5.0% to $13.60 billion
    • Net interest income increased 3.1% and net interest margin increased 5 basis points from 3.15% to 3.20%
    • 1.5% decline in revenue and 3.4% increase in noninterest expenses generated 10% decline in pre-provision net revenue1
    • Provision expense for credit losses of $29.0 million, principally driven by loan growth amid a challenging macroeconomic environment, where elevated interest rates and inflationary pressures placed financial strain on some small business borrowers
    • Two key initiatives saw positive momentum — non-interest bearing deposit growth and small dollar loan production

    “Live Oak Bank demonstrated strong growth across our lending and deposit franchises in the first quarter, all while navigating the current small business credit cycle and a backdrop of economic uncertainty,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We have an unwavering dedication to small business and staying close to our customers in these turbulent times remains paramount. Small business is the backbone of America, and we continue to support our nation’s entrepreneurs with the capital they need to create jobs, drive innovation, and serve their communities well.”

    Conference Call

    Live Oak will host a conference call to discuss the Company’s financial results and business outlook tomorrow, April 24, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 75855. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

    Live Telephone Dial-In

    U.S.: 800.549.8228
    International: +1 646.564.2877
    Pass Code: None Required

    Live Webcast Log-In

    Webcast Link: investor.liveoakbank.com
    Registration: Name and Email Required
    Multi-Factor Code: Provided After Registration

    (1) See accompanying GAAP to Non-GAAP Reconciliation.

       
    First Quarter 2025 Key Measures  
       
    (Dollars in thousands, except per share data)       Increase (Decrease)    
      1Q 2025   4Q 2024   Dollars   Percent   1Q 2024
    Total revenue (1) $ 126,113     $ 128,067     $ (1,954 )   (1.5 )%   $ 116,208  
    Total noninterest expense   84,017       81,257       2,760     3.4       77,737  
    Income before taxes   13,132       13,229       (97 )   (0.7 )     22,107  
    Effective tax rate   26.4 %     25.6 %     n/a     n/a     (24.8 )%
    Net income attributable to Live Oak Bancshares, Inc. $ 9,717     $ 9,900     $ (183 )   (1.8 )%   $ 27,586  
    Diluted earnings per share   0.21       0.22       (0.01 )   (5 )     0.60  
    Loan and lease production:                        
    Loans and leases originated $ 1,396,223     $ 1,421,118     $ (24,895 )   (1.8 )%   $ 805,129  
    % Fully funded   46.0 %     42.4 %     n/a     n/a       43.8 %
    Total loans and leases: $ 11,061,866     $ 10,579,376     $ 482,490     4.6 %   $ 9,223,310  
    Total assets:   13,595,704       12,943,380       652,324     5.0       11,505,569  
    Total deposits:   12,395,945       11,760,494       635,451     5.4       10,383,361  

    (1) Total revenue consists of net interest income and total noninterest income.


    Important Note Regarding Forward-Looking Statements

    Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company’s status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company’s ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company’s business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company’s ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

    About Live Oak Bancshares, Inc.

    Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank.

    Contacts:

    Walter J. Phifer | CFO | Investor Relations | 910.202.6926
    Claire Parker | Corporate Communications | Media Relations | 910.597.1592

     
    Live Oak Bancshares, Inc.
    Quarterly Statements of Income (unaudited)
    (Dollars in thousands, except per share data)
     
      Three Months Ended   1Q 2025 Change vs.
      1Q 2025   4Q 2024   3Q 2024   2Q 2024   1Q 2024   4Q 2024   1Q 2024
    Interest income                     %   %
    Loans and fees on loans $ 195,616     $ 194,821     $ 192,170     $ 181,840     $ 176,010     0.4     11.1  
    Investment securities, taxable   11,089       10,490       9,750       9,219       8,954     5.7     23.8  
    Other interest earning assets   6,400       7,257       7,016       7,389       7,456     (11.8 )   (14.2 )
    Total interest income   213,105       212,568       208,936       198,448       192,420     0.3     10.7  
    Interest expense                          
    Deposits   110,888       113,357       110,174       105,358       101,998     (2.2 )   8.7  
    Borrowings   1,685       1,737       1,762       1,770       311     (3.0 )   441.8  
    Total interest expense   112,573       115,094       111,936       107,128       102,309     (2.2 )   10.0  
    Net interest income   100,532       97,474       97,000       91,320       90,111     3.1     11.6  
    Provision for loan and lease credit losses   28,964       33,581       34,502       11,765       16,364     (13.7 )   77.0  
    Net interest income after provision for loan and lease credit losses   71,568       63,893       62,498       79,555       73,747     12.0     (3.0 )
    Noninterest income                          
    Loan servicing revenue   8,298       8,524       8,040       7,347       7,624     (2.7 )   8.8  
    Loan servicing asset revaluation   (4,728 )     (2,326 )     (4,207 )     (2,878 )     (2,744 )   (103.3 )   (72.3 )
    Net gains on sales of loans   18,648       18,356       16,646       14,395       11,502     1.6     62.1  
    Net (loss) gain on loans accounted for under the fair value option   (1,034 )     195       2,255       172       (219 )   (630.3 )   (372.1 )
    Equity method investments (loss) income   (2,239 )     (2,739 )     (1,393 )     (1,767 )     (5,022 )   18.3     55.4  
    Equity security investments (losses) gains, net   20       12       909       161       (529 )   66.7     (103.8 )
    Lease income   2,573       2,456       2,424       2,423       2,453     4.8     4.9  
    Management fee income   —       —       1,116       3,271       3,271     —     (100.0 )
    Other noninterest income   4,043       6,115       7,142       11,035       9,761     (33.9 )   (58.6 )
    Total noninterest income   25,581       30,593       32,932       34,159       26,097     (16.4 )   (2.0 )
    Noninterest expense                          
    Salaries and employee benefits   48,008       45,214       44,524       46,255       47,275     6.2     1.6  
    Travel expense   2,795       2,628       2,344       2,328       2,438     6.4     14.6  
    Professional services expense   3,024       2,797       3,287       3,061       1,878     8.1     61.0  
    Advertising and marketing expense   3,665       1,979       2,473       3,004       3,692     85.2     (0.7 )
    Occupancy expense   2,737       2,558       2,807       2,388       2,247     7.0     21.8  
    Technology expense   9,251       9,406       9,081       7,996       7,723     (1.6 )   19.8  
    Equipment expense   3,745       3,769       3,472       3,511       3,074     (0.6 )   21.8  
    Other loan origination and maintenance expense   4,585       4,812       4,872       3,659       3,911     (4.7 )   17.2  
    Renewable energy tax credit investment (recovery) impairment   —       1,172       115       170       (927 )   (100.0 )   (100.0 )
    FDIC insurance   3,551       3,053       1,933       2,649       3,200     16.3     11.0  
    Other expense   2,656       3,869       2,681       2,635       3,226     (31.4 )   (17.7 )
    Total noninterest expense   84,017       81,257       77,589       77,656       77,737     3.4     8.1  
    Income before taxes   13,132       13,229       17,841       36,058       22,107     (0.7 )   (40.6 )
    Income tax expense   3,464       3,386       4,816       9,095       (5,479 )   2.3     (163.2 )
    Net income   9,668       9,843       13,025       26,963       27,586     (1.8 )   (65.0 )
    Net loss attributable to non-controlling interest   49       57       —       —       —     (14.0 )   100.0  
    Net income attributable to Live Oak Bancshares, Inc. $ 9,717     $ 9,900     $ 13,025     $ 26,963     $ 27,586     (1.8 )   (64.8 )
    Earnings per share                          
    Basic $ 0.21     $ 0.22     $ 0.28     $ 0.60     $ 0.62     (4.5 )   (66.1 )
    Diluted $ 0.21     $ 0.22     $ 0.28     $ 0.59     $ 0.60     (4.5 )   (65.0 )
    Weighted average shares outstanding                          
    Basic   45,377,965       45,224,470       45,073,482       44,974,942       44,762,308          
    Diluted   45,754,499       46,157,979       45,953,947       45,525,082       45,641,210          
     
    Live Oak Bancshares, Inc.
    Quarterly Balance Sheets (unaudited)
    (Dollars in thousands)
     
      As of the quarter ended   1Q 2025 Change vs.
      1Q 2025   4Q 2024   3Q 2024   2Q 2024   1Q 2024   4Q 2024   1Q 2024
    Assets                     %   %
    Cash and due from banks $ 744,263     $ 608,800     $ 666,585     $ 615,449     $ 597,394     22.3     24.6  
    Certificates of deposit with other banks   250       250       250       250       250     —     —  
    Investment securities available-for-sale   1,312,680       1,248,203       1,233,466       1,151,195       1,120,622     5.2     17.1  
    Loans held for sale   367,955       346,002       359,977       363,632       310,749     6.3     18.4  
    Loans and leases held for investment (1)   10,693,911       10,233,374       9,831,891       9,172,134       8,912,561     4.5     20.0  
    Allowance for credit losses on loans and leases   (190,184 )     (167,516 )     (168,737 )     (137,867 )     (139,041 )   (13.5 )   (36.8 )
    Net loans and leases   10,503,727       10,065,858       9,663,154       9,034,267       8,773,520     4.4     19.7  
    Premises and equipment, net   259,113       264,059       267,032       267,864       258,071     (1.9 )   0.4  
    Foreclosed assets   2,108       1,944       8,015       8,015       8,561     8.4     (75.4 )
    Servicing assets   56,911       56,144       52,553       51,528       49,343     1.4     15.3  
    Other assets   348,697       352,120       356,314       376,370       387,059     (1.0 )   (9.9 )
    Total assets $ 13,595,704     $ 12,943,380     $ 12,607,346     $ 11,868,570     $ 11,505,569     5.0     18.2  
    Liabilities and shareholders’ equity                          
    Liabilities                          
    Deposits:                          
    Noninterest-bearing $ 386,108     $ 318,890     $ 258,844     $ 264,013     $ 226,668     21.1     70.3  
    Interest-bearing   12,009,837       11,441,604       11,141,703       10,443,018       10,156,693     5.0     18.2  
    Total deposits   12,395,945       11,760,494       11,400,547       10,707,031       10,383,361     5.4     19.4  
    Borrowings   110,247       112,820       115,371       117,745       120,242     (2.3 )   (8.3 )
    Other liabilities   58,065       66,570       83,672       82,745       74,248     (12.8 )   (21.8 )
    Total liabilities   12,564,257       11,939,884       11,599,590       10,907,521       10,577,851     5.2     18.8  
    Shareholders’ equity                          
    Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding   —       —       —       —       —     —     —  
    Class A common stock (voting)   370,513       365,607       361,925       356,381       349,648     1.3     6.0  
    Class B common stock (non-voting)   —       —       —       —       —     —     —  
    Retained earnings   724,215       715,767       707,026       695,172       669,307     1.2     8.2  
    Accumulated other comprehensive loss   (67,698 )     (82,344 )     (61,195 )     (90,504 )     (91,237 )   17.8     25.8  
    Total shareholders’ equity attributed to Live Oak Bancshares, Inc.   1,027,030       999,030       1,007,756       961,049       927,718     2.8     10.7  
    Non-controlling interest   4,417       4,466       —       —       —     (1.1 )   100.0  
    Total shareholders’ equity   1,031,447       1,003,496       1,007,756       961,049       927,718     2.8     11.2  
    Total liabilities and shareholders’ equity $ 13,595,704     $ 12,943,380     $ 12,607,346     $ 11,868,570     $ 11,505,569     5.0     18.2  

    (1) Includes $316.8 million, $328.7 million, $343.4 million, $363.0 million and $379.2 million measured at fair value for the quarters ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024 respectively.

     
    Live Oak Bancshares, Inc.
    Quarterly Selected Financial Data
    (Dollars in thousands, except per share data)
     
      As of and for the three months ended
      1Q 2025   4Q 2024   3Q 2024   2Q 2024   1Q 2024
    Income Statement Data                  
    Net income attributable to Live Oak Bancshares, Inc. $ 9,717     $ 9,900     $ 13,025     $ 26,963     $ 27,586  
    Per Common Share                  
    Net income, diluted $ 0.21     $ 0.22     $ 0.28     $ 0.59     $ 0.60  
    Dividends declared   0.03       0.03       0.03       0.03       0.03  
    Book value   22.62       22.12       22.32       21.35       20.64  
    Tangible book value (1)   22.55       22.05       22.24       21.28       20.57  
    Performance Ratios                  
    Return on average assets (annualized)   0.30 %     0.31 %     0.43 %     0.93 %     0.98 %
    Return on average equity (annualized)   3.78       3.85       5.21       11.39       11.93  
    Net interest margin   3.20       3.15       3.33       3.28       3.33  
    Efficiency ratio (1)   66.62       63.45       59.72       61.89       66.89  
    Noninterest income to total revenue   20.28       23.89       25.35       27.22       22.46  
    Selected Loan Metrics                  
    Loans and leases originated $ 1,396,223     $ 1,421,118     $ 1,757,856     $ 1,171,141     $ 805,129  
    Outstanding balance of sold loans serviced   4,949,962       4,715,895       4,452,750       4,292,857       4,329,097  
    Asset Quality Ratios                  
    Allowance for credit losses to loans and leases held for investment (3)   1.83 %     1.69 %     1.78 %     1.57 %     1.63 %
    Net charge-offs (3) $ 6,774     $ 33,566     $ 1,710     $ 8,253     $ 3,163  
    Net charge-offs to average loans and leases held for investment (2) (3)   0.27 %     1.39 %     0.08 %     0.38 %     0.15 %
                       
    Nonperforming loans and leases at historical cost (3)                  
    Unguaranteed $ 99,907     $ 81,412     $ 49,398     $ 37,340     $ 43,117  
    Guaranteed   322,993       222,885       166,177       122,752       105,351  
    Total   422,900       304,297       215,575       160,092       148,468  
    Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)   0.96 %     0.82 %     0.52 %     0.42 %     0.51 %
                       
    Nonperforming loans at fair value (4)                  
    Unguaranteed $ 9,938     $ 9,115     $ 8,672     $ 9,590     $ 7,942  
    Guaranteed   58,100       54,873       49,822       51,570       47,620  
    Total   68,038       63,988       58,494       61,160       55,562  
    Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)   3.14 %     2.77 %     2.53 %     2.64 %     2.09 %
                       
    Capital Ratios                  
    Common equity tier 1 capital (to risk-weighted assets)   10.70 %     11.04 %     11.19 %     11.85 %     11.89 %
    Tier 1 leverage capital (to average assets)   8.03       8.21       8.60       8.71       8.69  

    Notes to Quarterly Selected Financial Data
    (1) See accompanying GAAP to Non-GAAP Reconciliation.
    (2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
    (3) Loans and leases at historical cost only (excludes loans measured at fair value).
    (4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

     
    Live Oak Bancshares, Inc.
    Quarterly Average Balances and Net Interest Margin
    (Dollars in thousands)
     
      Three Months Ended
    March 31, 2025    		   Three Months Ended
    December 31, 2024
      Average
    Balance    		   Interest   Average
    Yield/Rate    		   Average
    Balance    		   Interest   Average
    Yield/Rate
    Interest-earning assets:                      
    Interest-earning balances in other banks $ 581,267     $ 6,400   4.47 %   $ 603,758     $ 7,257   4.78 %
    Investment securities   1,379,797       11,089   3.26       1,340,027       10,490   3.11  
    Loans held for sale   407,953       8,612   8.56       339,394       7,361   8.63  
    Loans and leases held for investment (1)   10,388,872       187,004   7.30       10,030,353       187,460   7.44  
    Total interest-earning assets   12,757,889       213,105   6.77       12,313,532       212,568   6.87  
    Less: Allowance for credit losses on loans and leases   (165,320 )             (155,498 )        
    Noninterest-earning assets   534,133               551,265          
    Total assets $ 13,126,702             $ 12,709,299          
    Interest-bearing liabilities:                      
    Interest-bearing checking $ 350,491     $ 3,929   4.55 %   $ 350,304     $ 4,350   4.94 %
    Savings   5,540,147       51,604   3.78       5,333,338       52,308   3.90  
    Money market accounts   127,908       120   0.38       138,021       176   0.51  
    Certificates of deposit   5,563,004       55,235   4.03       5,376,290       56,523   4.18  
    Total deposits   11,581,550       110,888   3.88       11,197,953       113,357   4.03  
    Borrowings   111,919       1,685   6.11       114,561       1,737   6.03  
    Total interest-bearing liabilities   11,693,469       112,573   3.90       11,312,514       115,094   4.05  
    Noninterest-bearing deposits   342,482               281,874          
    Noninterest-bearing liabilities   58,739               83,373          
    Shareholders’ equity   1,027,547               1,028,426          
    Non-controlling interest   4,465               3,112          
    Total liabilities and shareholders’ equity $ 13,126,702             $ 12,709,299          
    Net interest income and interest rate spread     $ 100,532   2.87 %       $ 97,474   2.82 %
    Net interest margin         3.20             3.15  
    Ratio of average interest-earning assets to average interest-bearing liabilities         109.10 %           108.85 %

    (1) Average loan and lease balances include non-accruing loans and leases.

     
    Live Oak Bancshares, Inc.
    GAAP to Non-GAAP Reconciliation
    (Dollars in thousands)
     
      As of and for the three months ended
      1Q 2025   4Q 2024   3Q 2024   2Q 2024   1Q 2024
    Total shareholders’ equity $ 1,031,447     $ 1,003,496     $ 1,007,756     $ 961,049     $ 927,718  
    Less:                  
    Goodwill   1,797       1,797       1,797       1,797       1,797  
    Other intangible assets   1,529       1,568       1,606       1,644       1,682  
    Tangible shareholders’ equity (a) $ 1,028,121     $ 1,000,131     $ 1,004,353     $ 957,608     $ 924,239  
    Shares outstanding (c)   45,589,633       45,359,425       45,151,691       45,003,856       44,938,673  
    Total assets $ 13,595,704     $ 12,943,380     $ 12,607,346     $ 11,868,570     $ 11,505,569  
    Less:                  
    Goodwill   1,797       1,797       1,797       1,797       1,797  
    Other intangible assets   1,529       1,568       1,606       1,644       1,682  
    Tangible assets (b) $ 13,592,378     $ 12,940,015     $ 12,603,943     $ 11,865,129     $ 11,502,090  
    Tangible shareholders’ equity to tangible assets (a/b)   7.56 %     7.73 %     7.97 %     8.07 %     8.04 %
    Tangible book value per share (a/c) $ 22.55     $ 22.05     $ 22.24     $ 21.28     $ 20.57  
    Efficiency ratio:                  
    Noninterest expense (d) $ 84,017     $ 81,257     $ 77,589     $ 77,656     $ 77,737  
    Net interest income   100,532       97,474       97,000       91,320       90,111  
    Noninterest income   25,581       30,593       32,932       34,159       26,097  
    Total revenue (e) $ 126,113     $ 128,067     $ 129,932     $ 125,479     $ 116,208  
    Efficiency ratio (d/e)   66.62 %     63.45 %     59.72 %     61.89 %     66.89 %
    Pre-provision net revenue (e-d) $ 42,096     $ 46,810     $ 52,343     $ 47,823     $ 38,471  
                                           

    This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

    The MIL Network –

    April 24, 2025

  • MIL-OSI: TowneBank Reports First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    SUFFOLK, Va., April 23, 2025 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended March 31, 2025 of $50.59 million, or $0.67 per diluted share, compared to $34.69 million, or $0.46 per diluted share, for the quarter ended March 31, 2024. Excluding certain items affecting comparability, core earnings (non-GAAP) were $50.98 million, or $0.68 per diluted share, in the current quarter compared to $36.27 million, or $0.48 per diluted share, for the quarter ended March 31, 2024.

    “Our Company had a very strong start to the year earning $0.67 per share and delivering nearly 7% annualized loan growth. Our continued focus on measured growth aligned with a deliberate strategy to maintain healthy liquidity and capital levels should position our Company well during periods of economic uncertainty. While growth could be challenged in the short run, we believe our conservative Main Street approach to relationship banking coupled with our diversified fee income businesses can serve as a pillar of strength for our members, shareholders and the communities we serve,” said G. Robert Aston, Jr., Executive Chairman.

    Highlights for First Quarter 2025:

    • Total revenues were $192.04 million, an increase of $24.94 million, or 14.93%, compared to first quarter 2024. Net interest income increased $17.26 million, driven primarily by lower deposit costs, while noninterest income increased $7.68 million.
    • Total deposits were $14.61 billion, an increase of $482.47 million, or 3.42%, compared to first quarter 2024. Total deposits increased 1.19%, or $171.25 million, in comparison to December 31, 2024, 4.81% on an annualized basis.
    • Noninterest-bearing deposits increased 2.85%, to $4.31 billion, compared to first quarter 2024 and represented 29.53% of total deposits. Compared to the linked quarter, noninterest-bearing deposits increased 1.42%.
    • Loans held for investment were $11.65 billion, an increase of $200.40 million, or 1.75%, compared to March 31, 2024, and $193.69 million, 1.69%, or 6.86% on an annualized basis, compared to December 31, 2024.
    • Annualized return on common shareholders’ equity was 9.57% compared to 6.89% in first quarter 2024. Annualized return on average tangible common shareholders’ equity (non-GAAP) was 13.21% compared to 9.98% in first quarter 2024.
    • Net interest margin was 3.14% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.17%, including purchase accounting accretion of 3 basis points, compared to the prior year quarter net interest margin of 2.72% and tax-equivalent net interest margin (non-GAAP) of 2.75%, including purchase accounting accretion of 4 basis points.
    • Compared to the linked quarter, net interest margin increased 15 basis points and spread increased 26 basis points.  
    • The effective tax rate was 13.95% in the quarter compared to 17.31% in first quarter 2024 and 13.92% in the linked quarter. The lower effective tax rate in the current quarter as compared to first quarter 2024 was primarily due to the impact on state and federal taxes from the increase in credits and losses related to tax advantaged investment properties placed in service over the past 12 months and purchase accounting adjustments for a prior partnership acquisition.   

    “We were pleased to close our partnership with Village Bank and Trust Financial Corp. on April 1, 2025 followed by our latest announcement of the signing of a definitive agreement with Old Point Financial Corporation. Both transactions are strategically important for our Company and follow our disciplined model of targeting partnerships that enhance shareholder returns with low execution risk,” stated William I. Foster III, President and Chief Executive Officer.

    Quarterly Net Interest Income:

    • Net interest income was $120.48 million compared to $103.22 million for the quarter ended March 31, 2024.
    • On an average basis, loans held for investment, with a yield of 5.38%, represented 74.15% of earning assets at March 31, 2025 compared to a yield of 5.37% and 74.54% of earning assets at March 31, 2024.
    • The cost of interest-bearing deposits was 2.69% for the quarter ended March 31, 2025, compared to 3.24% in first quarter 2024. Interest expense on deposits decreased $11.26 million, or 14.36%, from the prior year quarter driven by decreases in rate.
    • Our total cost of deposits decreased to 1.89% from 2.26% for the quarter ended March 31, 2024 due to lower interest-bearing deposit rates. The Federal Reserve Open Market Committee lowered the overnight funds rate a total of 100 basis points in the last four months of 2024.
    • Average interest-earning assets totaled $15.55 billion at March 31, 2025 compared to $15.27 billion at March 31, 2024, an increase of 1.84%. The Company anticipates approximately $760 million of cash flows from its securities portfolio to be available for reinvestment in the next 24 months.
    • Average interest-bearing liabilities totaled $10.42 billion, an increase of $212.32 million, or 2.08%, from prior year, driven by demand and money market deposit growth. Borrowings have declined between periods. There were no short term FHLB borrowings in first quarter 2025, compared to an average of $174.73 million in the prior year quarter.

    Quarterly Provision for Credit Losses:

    • The quarterly provision for credit losses was an expense of $2.42 million compared to a benefit of $0.88 million in the prior year quarter and an expense of $1.61 million in the linked quarter.
    • The allowance for credit losses on loans increased $2.21 million in first quarter 2025, compared to the linked quarter. The increase in the allowance was driven by increases in the loan portfolio combined with a continuation of our use of higher weightings of more adverse macroeconomic forecast scenarios utilized in our model.
    • Net loan charge-offs were $626 thousand in the quarter compared to $520 thousand in the prior year quarter and $382 thousand in the linked quarter.
    • The ratio of net charge-offs to average loans on an annualized basis was 0.02% in first quarter 2025, compared to 0.02% in first quarter 2024 and 0.01% in the linked quarter.
    • The allowance for credit losses on loans represented 1.08% of total loans at March 31, 2025, compared to 1.10% at March 31, 2024, and 1.08% at December 31, 2024. The allowance for credit losses on loans was 19.15 times nonperforming loans compared to 18.01 times at March 31, 2024 and 16.69 times at December 31, 2024.

    Quarterly Noninterest Income:

    • Total noninterest income was $71.57 million compared to $63.88 million in 2024, an increase of $7.68 million, or 12.02%.
    • Total net insurance commissions increased $0.89 million, or 3.47%, to $26.42 million in first quarter 2025 compared to 2024. This increase was primarily attributable to increases in property and casualty commissions, which were driven by organic growth.
    • Property management fee revenue increased 16.26%, or $2.73 million, to $19.50 million in first quarter 2025 compared to 2024. Future reservations increased compared to the prior year, primarily driven by an acquisition in 2024.
    • Residential mortgage banking income was $10.36 million compared to $10.48 million in first quarter 2024. Loan volume increased to $445.19 million in first quarter 2025 from $424.39 million in first quarter 2024. Residential purchase activity was 89.94% of production volume in the first quarter of 2025 compared to 95.66% in first quarter 2024.
    • At 3.18% gross margins on residential mortgage sales decreased 7 basis points from the linked quarter and 16 basis points from 3.34% in first quarter 2024.

    Quarterly Noninterest Expense:

    • Total noninterest expense was $130.54 million compared to $125.59 million in 2024, an increase of $4.95 million, or 3.94%.   This increase was primarily attributable to growth in salaries and employee benefits of $3.70 million.
    • Salaries and benefits expense increases were driven by annual base salary adjustments that went into effect October 2024, an increase in banking personnel, and production incentives.

    Consolidated Balance Sheet Highlights:

    • Total assets were $17.51 billion for the quarter ended March 31, 2025, a $264.99 million increase compared to $17.25 billion at December 31, 2024. Total assets increased $627.64 million, or 3.72%, from $16.88 billion at March 31, 2024.
    • Loans held for investment increased $193.69 million, or 1.69%, compared to the linked quarter and $200.40 million, or 1.75%, compared to prior year. Real estate construction and development loans declined, but were offset by growth in non owner occupied and multifamily commercial real estate. The Company continues to maintain a strong credit discipline.
    • Mortgage loans held for sale increased $17.78 million, or 11.80%, compared to prior year but decreased $31.95 million, or 15.94%, compared to the linked quarter, driven by production levels.
    • Total deposits increased $482.47 million, or 3.42%, driven by interest-bearing demand deposits, compared to prior year. In the linked quarter comparison, total deposits increased $171.25 million, or 4.81% on an annualized basis.
    • Noninterest-bearing deposits increased $119.42 million, or 2.85%, compared to prior year and $60.50 million, or 1.42%, or 5.77% on an annualized basis, compared to the linked quarter.
    • Total borrowings decreased $6.88 million, or 2.37%, compared to first quarter 2024 and $12.80 million, or 4.31%, compared to the linked quarter, due to declines in repurchase agreements and other borrowings.

    Investment Securities:

    • Total investment securities were $2.70 billion compared to $2.59 billion at December 31, 2024 and $2.54 billion at March 31, 2024. The weighted average duration of the portfolio at March 31, 2025 was 3.3 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $119.25 million at March 31, 2025, compared to $155.28 million at December 31, 2024 and $170.84 million at March 31, 2024, with the changes in fair value due to the change in interest rates.

    Loans and Asset Quality:

    • Total loans held for investment were $11.65 billion at March 31, 2025, $11.46 billion at December 31, 2024, and $11.45 billion at March 31, 2024.
    • Nonperforming assets were $7.37 million, or 0.04% of total assets, compared to $7.77 million, or 0.05%, at March 31, 2024, and $7.87 million, or 0.05%, in the linked quarter end.
    • Nonperforming loans were 0.06% of period end loans at March 31, 2025, March 31, 2024, and the linked quarter end.
    • Foreclosed property consisted of $235 thousand in other real estate owned and $551 thousand in repossessed autos, for a total of $786 thousand in foreclosed property at March 31, 2025, compared to $175 thousand in other real estate owned and $605 thousand in repossessed autos, for a total of $780 thousand in foreclosed property at March 31, 2024.

    Deposits and Borrowings:

    • Total deposits were $14.61 billion compared to $14.44 billion at December 31, 2024 and $14.13 billion at March 31, 2024.
    • The ratio of period end loans held for investment to deposits was 79.77% compared to 79.37% at December 31, 2024 and 81.07% at March 31, 2024.
    • Noninterest-bearing deposits were 29.53% of total deposits at March 31, 2025 compared to 29.46% at December 31, 2024 and 29.69% at March 31, 2024. Noninterest-bearing deposits increased $119.42 million, or 2.85%, compared to March 31, 2024, and $60.50 million, or 1.42%, or 5.77% on an annualized basis, compared to the linked quarter.
    • Total borrowings were $284.10 million compared to $296.90 million at December 31, 2024 and $290.98 million at March 31, 2024.

    Capital:

    • Common equity tier 1 capital ratio of 12.75%(1).
    • Tier 1 leverage capital ratio of 10.61%(1).
    • Tier 1 risk-based capital ratio of 12.87%(1).
    • Total risk-based capital ratio of 15.65% (1) .
    • Book value per common share was $29.19 compared to $28.43 at December 31, 2024 and $27.33 at March 31, 2024.
    • Tangible book value per common share (non-GAAP) was $22.36 compared to $21.55 at December 31, 2024 and $20.31 at March 31, 2024.

    (1) Preliminary.

    About TowneBank:
    Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

    Today, TowneBank operates over 55 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.51 billion as of March 31, 2025, TowneBank is one of the largest banks headquartered in Virginia.

    Non-GAAP Financial Measures:
    This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

    Forward-Looking Statements:
    This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the 2023 bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, trade restrictions and tariffs, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to successfully integrate the businesses of Old Point Financial Corporation (“Old Point”), a pending merger, and Village Bank and Trust Financial Corp. (“Village”), a recently completed merger, to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected, our ability to close the transaction with Old Point when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; deposit attrition, operating costs, customer losses, and business disruption associated with pending or recently completed acquisitions, including reputational risk and adverse effects on relationships with employees, customers or other business partners, that may be greater than expected; costs or difficulties related to the integration of the businesses we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; the diversion of management’s attention and time from ongoing business operations and opportunities on merger related matters; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area, including any adverse impact of actual and proposed cuts to federal spending, including defense, security and military spending, on the Greater Hampton Roads economy. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2024 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

    Media contact:
    G. Robert Aston, Jr., Executive Chairman, 757-638-6780
    William I. Foster III, President and Chief Executive Officer, 757-417-6482

    Investor contact:
    William B. Littreal, Chief Financial Officer, 757-638-6813

     
    TOWNEBANK
    Selected Financial Highlights (unaudited)
    (dollars in thousands, except per share data)
         
        Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
        2025       2024       2024       2024       2024  
    Income and Performance Ratios:                  
      Total revenue $ 192,044     $ 177,160     $ 174,518     $ 174,970     $ 167,102  
      Net income   50,887       41,441       43,126       43,039       35,127  
      Net income available to common shareholders   50,592       41,265       42,949       42,856       34,687  
      Net income per common share – diluted   0.67       0.55       0.57       0.57       0.46  
      Book value per common share   29.19       28.43       28.59       27.62       27.33  
      Book value per common share – tangible (non-GAAP)   22.36       21.55       21.65       20.65       20.31  
      Return on average assets   1.19 %     0.95 %     1.00 %     1.01 %     0.83 %
      Return on average assets – tangible (non-GAAP)   1.29 %     1.03 %     1.09 %     1.11 %     0.92 %
      Return on average equity   9.50 %     7.64 %     8.12 %     8.43 %     6.84 %
      Return on average equity – tangible (non-GAAP)   13.08 %     10.68 %     11.42 %     12.03 %     9.87 %
      Return on average common equity   9.57 %     7.70 %     8.18 %     8.49 %     6.89 %
      Return on average common equity – tangible (non-GAAP)   13.21 %     10.79 %     11.54 %     12.16 %     9.98 %
      Noninterest income as a percentage of total revenue   37.27 %     33.36 %     35.66 %     37.68 %     38.23 %
    Regulatory Capital Ratios (1):                  
      Common equity tier 1   12.75 %     12.77 %     12.63 %     12.43 %     12.20 %
      Tier 1   12.87 %     12.89 %     12.76 %     12.55 %     12.32 %
      Total   15.65 %     15.68 %     15.54 %     15.34 %     15.10 %
      Tier 1 leverage ratio   10.61 %     10.36 %     10.38 %     10.25 %     10.15 %
    Asset Quality:                  
      Allowance for credit losses on loans to nonperforming loans 19.15x   16.69x   18.70x   19.08x   18.01x
      Allowance for credit losses on loans to period end loans   1.08 %     1.08 %     1.08 %     1.10 %     1.10 %
      Nonperforming loans to period end loans   0.06 %     0.06 %     0.06 %     0.06 %     0.06 %
      Nonperforming assets to period end assets   0.04 %     0.05 %     0.04 %     0.04 %     0.05 %
      Net charge-offs (recoveries) to average loans (annualized)   0.02 %     0.01 %     0.02 %     — %     0.02 %
      Net charge-offs (recoveries) $ 626     $ 382     $ 677     $ (19 )   $ 520  
                         
      Nonperforming loans $ 6,586     $ 7,424     $ 6,588     $ 6,582     $ 6,987  
      Foreclosed property   786       443       884       581       780  
      Total nonperforming assets $ 7,372     $ 7,867     $ 7,472     $ 7,163     $ 7,767  
      Loans past due 90 days and still accruing interest $ 15     $ 1,264     $ 510     $ 368     $ 323  
      Allowance for credit losses on loans $ 126,131     $ 123,923     $ 123,191     $ 125,552     $ 125,835  
    Mortgage Banking:                  
      Loans originated, mortgage $ 300,699     $ 385,238     $ 421,571     $ 430,398     $ 289,191  
      Loans originated, joint venture   144,495       180,188       176,612       196,583       135,197  
      Total loans originated $ 445,194     $ 565,426     $ 598,183     $ 626,981     $ 424,388  
      Number of loans originated   1,181       1,489       1,637       1,700       1,247  
      Number of originators   161       160       159       169       176  
      Purchase %   89.94 %     89.46 %     91.49 %     94.85 %     95.66 %
      Loans sold $ 475,518     $ 629,120     $ 526,998     $ 605,134     $ 410,895  
      Rate lock asset $ 1,880     $ 1,150     $ 1,548     $ 1,930     $ 1,681  
      Gross realized gain on sales and fees as a % of loans originated   3.18 %     3.25 %     3.28 %     3.28 %     3.34 %
    Other Ratios:                  
      Net interest margin   3.14 %     2.99 %     2.90 %     2.86 %     2.72 %
      Net interest margin-fully tax-equivalent (non-GAAP)   3.17 %     3.02 %     2.93 %     2.89 %     2.75 %
      Average earning assets/total average assets   90.32 %     90.57 %     90.43 %     90.36 %     90.52 %
      Average loans/average deposits   80.01 %     78.71 %     80.07 %     80.80 %     81.48 %
      Average noninterest deposits/total average deposits   29.68 %     30.14 %     30.19 %     30.06 %     30.25 %
      Period end equity/period end total assets   12.66 %     12.50 %     12.58 %     12.24 %     12.24 %
      Efficiency ratio (non-GAAP)   67.10 %     70.28 %     70.93 %     68.98 %     73.25 %
      (1) Current reporting period regulatory capital ratios are preliminary.            
    TOWNEBANK
    Selected Data (unaudited)
    (dollars in thousands)
     
    Investment Securities             % Change
      Q1   Q1   Q4   Q1 25 vs.   Q1 25 vs.
    Available-for-sale securities, at fair value   2025       2024       2024     Q1 24   Q4 24
    U.S. agency securities $ 320,190     $ 294,723     $ 293,917     8.64 %   8.94 %
    U.S. Treasury notes   78,184       27,534       28,429     183.95 %   175.01 %
    Municipal securities   439,379       447,323       439,115     (1.78 )%   0.06 %
    Trust preferred and other corporate securities   98,463       87,983       95,279     11.91 %   3.34 %
    Mortgage-backed securities issued by GSEs and GNMA   1,535,217       1,347,920       1,497,951     13.90 %   2.49 %
    Allowance for credit losses   (1,262 )     (1,382 )     (1,326 )   (8.68 )%   (4.83 )%
    Total $ 2,470,171     $ 2,204,101     $ 2,353,365     12.07 %   4.96 %
    Gross unrealized gains (losses) reflected in financial statements            
    Total gross unrealized gains $ 5,909     $ 1,868     $ 2,572     216.33 %   129.74 %
    Total gross unrealized losses   (125,156 )     (172,708 )     (157,851 )   (27.53 )%   (20.71 )%
    Net unrealized gains (losses) and other adjustments on AFS securities $ (119,247 )   $ (170,840 )   $ (155,279 )   (30.20 )%   (23.20 )%
    Held-to-maturity securities, at amortized cost                  
    U.S. agency securities $ 92,805     $ 102,042     $ 102,622     (9.05 )%   (9.57 )%
    U.S. Treasury notes   96,481       197,356       96,710     (51.11 )%   (0.24 )%
    Municipal securities   5,390       5,294       5,366     1.81 %   0.45 %
    Trust preferred corporate securities   2,107       2,159       2,121     (2.41 )%   (0.66 )%
    Mortgage-backed securities issued by GSEs   5,235       5,659       5,533     (7.49 )%   (5.39 )%
    Allowance for credit losses   (68 )     (82 )     (77 )   (17.07 )%   (11.69 )%
    Total $ 201,950     $ 312,428     $ 212,275     (35.36 )%   (4.86 )%
                       
    Total gross unrealized gains $ 176     $ 265     $ 178     (33.58 )%   (1.12 )%
    Total gross unrealized losses   (6,563 )     (14,262 )     (8,647 )   (53.98 )%   (24.10 )%
    Net unrealized gains (losses) in HTM securities $ (6,387 )   $ (13,997 )   $ (8,469 )   (54.37 )%   (24.58 )%
    Total unrealized gains (losses) on AFS and HTM securities $ (125,634 )   $ (184,837 )   $ (163,748 )   (32.03 )%   (23.28 )%
                  % Change
    Loans Held For Investment Q1   Q1   Q4   Q1 25 vs.   Q1 25 vs.
        2025       2024       2024     Q1 24   Q4 24
    Real estate – construction and development $ 1,006,086     $ 1,255,741     $ 1,082,161     (19.88 )%   (7.03 )%
    Commercial real estate – owner occupied   1,654,401       1,700,753       1,628,731     (2.73 )%   1.58 %
    Commercial real estate – non owner occupied   3,329,728       3,178,947       3,196,665     4.74 %   4.16 %
    Real estate – multifamily   841,330       595,075       801,079     41.38 %   5.02 %
    Residential 1-4 family   1,886,107       1,882,296       1,891,470     0.20 %   (0.28 )%
    HELOC   429,152       386,361       410,594     11.08 %   4.52 %
    Commercial and industrial business (C&I)   1,337,254       1,288,550       1,280,394     3.78 %   4.44 %
    Government   511,676       528,341       513,039     (3.15 )%   (0.27 )%
    Indirect   570,795       555,482       567,245     2.76 %   0.63 %
    Consumer loans and other   86,217       80,797       87,677     6.71 %   (1.67 )%
    Total $ 11,652,746     $ 11,452,343     $ 11,459,055     1.75 %   1.69 %
                       
                  % Change
    Deposits Q1   Q1   Q4   Q1 25 vs.   Q1 25 vs.
        2025       2024       2024     Q1 24   Q4 24
    Noninterest-bearing demand $ 4,313,553     $ 4,194,132     $ 4,253,053     2.85 %   1.42 %
    Interest-bearing:                  
    Demand and money market accounts   7,463,355       6,916,701       7,329,669     7.90 %   1.82 %
    Savings   312,151       326,179       311,841     (4.30 )%   0.10 %
    Certificates of deposits   2,519,489       2,689,062       2,542,735     (6.31 )%   (0.91 )%
    Total   14,608,548       14,126,074       14,437,298     3.42 %   1.19 %
    TOWNEBANK
    Average Balances, Yields and Rate Paid (unaudited)
    (dollars in thousands)
     
      Three Months Ended   Three Months Ended   Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
          Interest   Average       Interest   Average       Interest   Average
      Average   Income/   Yield/   Average   Income/   Yield/   Average   Income/   Yield/
      Balance   Expense   Rate (1)   Balance   Expense   Rate (1)   Balance   Expense   Rate (1)
    Assets:                                  
    Loans (net of unearned income
    and deferred costs)    		 $ 11,527,915     $ 153,068     5.38 %   $ 11,455,253     $ 155,710     5.41 %   $ 11,379,323     $ 151,811     5.37 %
    Taxable investment securities   2,478,048       21,301     3.44 %     2,421,253       20,722     3.42 %     2,440,652       18,716     3.07 %
    Tax-exempt investment securities   176,081       1,860     4.23 %     176,266       1,832     4.16 %     161,538       1,549     3.84 %
    Total securities   2,654,129       23,161     3.49 %     2,597,519       22,554     3.47 %     2,602,190       20,265     3.12 %
    Interest-bearing deposits   1,199,650       11,801     3.99 %     1,451,121       15,796     4.33 %     1,167,322       14,234     4.90 %
    Mortgage loans held for sale   164,358       2,653     6.46 %     209,315       3,088     5.90 %     116,868       1,716     5.87 %
    Total earning assets   15,546,052       190,683     4.97 %     15,713,208       197,148     4.99 %     15,265,703       188,026     4.95 %
    Less: allowance for loan losses   (124,265 )             (123,068 )             (127,413 )        
    Total nonearning assets   1,790,075               1,758,988               1,725,945          
    Total assets $ 17,211,862             $ 17,349,128             $ 16,864,235          
    Liabilities and Equity:                                  
    Interest-bearing deposits                                  
    Demand and money market $ 7,279,365     $ 40,606     2.26 %   $ 7,157,076     $ 43,894     2.44 %   $ 6,828,053     $ 47,985     2.83 %
    Savings   312,118       714     0.93 %     315,414       777     0.98 %     329,036       881     1.08 %
    Certificates of deposit   2,540,438       25,813     4.12 %     2,694,236       31,214     4.61 %     2,583,938       29,522     4.60 %
    Total interest-bearing deposits   10,131,921       67,133     2.69 %     10,166,726       75,885     2.97 %     9,741,027       78,388     3.24 %
    Borrowings   29,606       (300 )   (4.05 )%     36,708       (151 )   (1.61 )%     212,375       3,078     5.73 %
    Subordinated debt, net   260,070       2,304     3.54 %     257,667       2,261     3.51 %     255,878       2,236     3.50 %
    Total interest-bearing liabilities   10,421,597       69,137     2.69 %     10,461,101       77,995     2.97 %     10,209,280       83,702     3.30 %
    Demand deposits   4,276,586               4,386,911               4,224,104          
    Other noninterest-bearing liabilities   353,665               353,005               390,576          
    Total liabilities   15,051,848               15,201,017               14,823,960          
    Shareholders’ equity   2,160,014               2,148,111               2,040,275          
    Total liabilities and equity $ 17,211,862             $ 17,349,128             $ 16,864,235          
    Net interest income (tax-equivalent basis) (4)     $ 121,546             $ 119,153             $ 104,324      
    Reconciliation of Non-GAAP Financial Measures                                
    Tax-equivalent basis adjustment       (1,068 )             (1,096 )             (1,106 )    
    Net interest income (GAAP)     $ 120,478             $ 118,057             $ 103,218      
                                       
    Interest rate spread (2)(4)         2.28 %           2.02 %           1.65 %
    Interest expense as a percent of average earning assets       1.80 %           1.97 %           2.21 %
    Net interest margin (tax-equivalent basis) (3)(4)       3.17 %           3.02 %           2.75 %
    Total cost of deposits         1.89 %           2.07 %           2.26 %
                                       

    (1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
    (2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
    (3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
    (4) Non-GAAP.

    TOWNEBANK
    Consolidated Balance Sheets
    (dollars in thousands, except share data)
       
         
      March 31,   December 31,
        2025       2024  
      (unaudited)   (audited)
    ASSETS      
    Cash and due from banks $ 126,526     $ 108,750  
    Interest-bearing deposits at FRB   1,090,555       1,127,878  
    Interest-bearing deposits in financial institutions   100,249       102,847  
    Total Cash and Cash Equivalents   1,317,330       1,339,475  
    Securities available for sale, at fair value (amortized cost of $2,590,680 and $2,509,970, and allowance for credit losses of $1,262 and $1,326 at March 31, 2025 and December 31, 2024, respectively)   2,470,171       2,353,365  
    Securities held to maturity, at amortized cost (fair value of $195,631 and $203,883 at March 31, 2025 and December 31, 2024, respectively)   202,018       212,352  
    Less: allowance for credit losses   (68 )     (77 )
    Securities held to maturity, net of allowance for credit losses   201,950       212,275  
    Other equity securities   12,223       12,100  
    FHLB stock   12,425       12,136  
    Total Securities   2,696,769       2,589,876  
    Mortgage loans held for sale   168,510       200,460  
    Loans, net of unearned income and deferred costs   11,652,746       11,459,055  
    Less: allowance for credit losses   (126,131 )     (123,923 )
    Net Loans   11,526,615       11,335,132  
    Premises and equipment, net   373,111       368,876  
    Goodwill   457,619       457,619  
    Other intangible assets, net   57,145       60,171  
    BOLI   280,344       279,802  
    Other assets   634,437       615,479  
    TOTAL ASSETS $ 17,511,880     $ 17,246,890  
           
    LIABILITIES AND EQUITY      
    Deposits:      
    Noninterest-bearing demand $ 4,313,553     $ 4,253,053  
    Interest-bearing:      
    Demand and money market accounts   7,463,355       7,329,669  
    Savings   312,151       311,841  
    Certificates of deposit   2,519,489       2,542,735  
    Total Deposits   14,608,548       14,437,298  
    Advances from the FHLB   3,029       3,218  
    Subordinated debt, net   260,198       260,001  
    Repurchase agreements and other borrowings   20,875       33,683  
    Total Borrowings   284,102       296,902  
    Other liabilities   402,252       357,063  
    TOTAL LIABILITIES   15,294,902       15,091,263  
    Preferred stock, authorized and unissued shares – 2,000,000   —       —  
    Common stock, $1.667 par value: 150,000,000 shares authorized;      
    75,392,225 and 75,255,205 shares issued at      
    March 31, 2025 and December 31, 2024, respectively   125,679       125,455  
    Capital surplus   1,123,330       1,122,147  
    Retained earnings   1,039,518       1,007,775  
    Common stock issued to deferred compensation trust, at cost:      
    1,049,002 and 1,046,121 shares at March 31, 2025 and December 31, 2024, respectively   (21,969 )     (21,868 )
    Deferred compensation trust   21,969       21,868  
    Accumulated other comprehensive income (loss)   (87,869 )     (116,045 )
    TOTAL SHAREHOLDERS’ EQUITY   2,200,658       2,139,332  
    Noncontrolling interest   16,320       16,295  
    TOTAL EQUITY   2,216,978       2,155,627  
    TOTAL LIABILITIES AND EQUITY $ 17,511,880     $ 17,246,890  
    TOWNEBANK
    Consolidated Statements of Income (unaudited)
    (dollars in thousands, except per share data)
           
           
      Three Months Ended
      March 31,
        2025       2024  
    INTEREST INCOME:      
    Loans, including fees $ 152,322     $ 150,974  
    Investment securities   22,839       19,996  
    Interest-bearing deposits in financial institutions and federal funds sold   11,801       14,234  
    Mortgage loans held for sale   2,653       1,716  
    Total interest income   189,615       186,920  
    INTEREST EXPENSE:      
    Deposits   67,133       78,388  
    Advances from the FHLB   25       2,438  
    Subordinated debt, net   2,304       2,236  
    Repurchase agreements and other borrowings   (325 )     640  
    Total interest expense   69,137       83,702  
    Net interest income   120,478       103,218  
    PROVISION FOR CREDIT LOSSES   2,420       (877 )
    Net interest income after provision for credit losses   118,058       104,095  
    NONINTEREST INCOME:      
    Residential mortgage banking income, net   10,361       10,477  
    Insurance commissions and related income, net   26,424       25,539  
    Property management income, net   19,500       16,773  
    Service charges on deposit accounts   3,327       3,079  
    Credit card merchant fees, net   1,697       1,551  
    Investment commissions, net   3,075       2,343  
    BOLI   1,872       1,842  
    Gain on sale of equity investment   2,000       —  
    Other income   3,310       2,206  
    Net gain on investment securities   —       74  
    Total noninterest income   71,566       63,884  
    NONINTEREST EXPENSE:      
    Salaries and employee benefits   75,078       71,377  
    Occupancy   9,333       9,422  
    Furniture and equipment   4,621       4,478  
    Amortization – intangibles   3,026       3,246  
    Software   6,293       6,100  
    Data processing   3,835       3,916  
    Professional fees   2,653       3,180  
    Advertising and marketing   4,472       4,582  
    FDIC and other insurance   2,860       4,358  
    Acquisition related expenses   420       595  
    Other expenses   17,945       14,337  
    Total noninterest expense   130,536       125,591  
    Income before income tax expense and noncontrolling interest   59,088       42,388  
    Provision for income tax expense   8,201       7,261  
    Net income $ 50,887     $ 35,127  
    Net income attributable to noncontrolling interest   (295 )     (440 )
    Net income attributable to TowneBank $ 50,592     $ 34,687  
    Per common share information      
    Basic earnings $ 0.67     $ 0.46  
    Diluted earnings $ 0.67     $ 0.46  
    Cash dividends declared $ 0.25     $ 0.25  
    TOWNEBANK
    Consolidated Balance Sheets – Five Quarter Trend
    (dollars in thousands, except share data)
     
                       
      March 31,   December 31,   September 30,   June 30,   March 31,
        2025       2024       2024       2024       2024  
      (unaudited)   (audited)   (unaudited)   (unaudited)   (unaudited)
    ASSETS                  
    Cash and due from banks $ 126,526     $ 108,750     $ 131,068     $ 140,028     $ 75,802  
    Interest-bearing deposits at FRB   1,090,555       1,127,878       1,061,596       1,062,115       926,635  
    Interest-bearing deposits in financial institutions   100,249       102,847       103,400       99,303       98,673  
    Total Cash and Cash Equivalents   1,317,330       1,339,475       1,296,064       1,301,446       1,101,110  
    Securities available for sale   2,470,171       2,353,365       2,363,176       2,250,679       2,204,101  
    Securities held to maturity   202,018       212,352       212,422       212,488       312,510  
    Less: allowance for credit losses   (68 )     (77 )     (77 )     (79 )     (82 )
    Securities held to maturity, net of allowance for credit losses   201,950       212,275       212,345       212,409       312,428  
    Other equity securities   12,223       12,100       12,681       13,566       13,661  
    FHLB stock   12,425       12,136       12,134       12,134       12,139  
    Total Securities   2,696,769       2,589,876       2,600,336       2,488,788       2,542,329  
    Mortgage loans held for sale   168,510       200,460       264,320       200,762       150,727  
    Loans, net of unearned income and deferred costs   11,652,746       11,459,055       11,412,518       11,451,747       11,452,343  
    Less: allowance for credit losses   (126,131 )     (123,923 )     (123,191 )     (125,552 )     (125,835 )
    Net Loans   11,526,615       11,335,132       11,289,327       11,326,195       11,326,508  
    Premises and equipment, net   373,111       368,876       365,764       340,348       342,569  
    Goodwill   457,619       457,619       457,619       457,619       457,619  
    Other intangible assets, net   57,145       60,171       63,265       65,460       68,758  
    BOLI   280,344       279,802       279,325       277,434       279,293  
    Other assets   634,437       615,479       572,000       610,791       615,324  
    TOTAL ASSETS $ 17,511,880     $ 17,246,890     $ 17,188,020     $ 17,068,843     $ 16,884,237  
    LIABILITIES AND EQUITY                  
    Deposits:                  
    Noninterest-bearing demand $ 4,313,553     $ 4,253,053     $ 4,267,628     $ 4,303,773     $ 4,194,132  
    Interest-bearing:                  
    Demand and money market accounts   7,463,355       7,329,669       6,990,103       6,940,086       6,916,701  
    Savings   312,151       311,841       319,970       312,881       326,179  
    Certificates of deposit   2,519,489       2,542,735       2,785,469       2,715,848       2,689,062  
    Total Deposits   14,608,548       14,437,298       14,363,170       14,272,588       14,126,074  
    Advances from the FHLB   3,029       3,218       3,405       3,591       3,775  
    Subordinated debt, net   260,198       260,001       256,444       256,227       256,011  
    Repurchase agreements and other borrowings   20,875       33,683       30,970       35,351       31,198  
    Total Borrowings   284,102       296,902       290,819       295,169       290,984  
    Other liabilities   402,252       357,063       371,316       411,770       401,307  
    TOTAL LIABILITIES   15,294,902       15,091,263       15,025,305       14,979,527       14,818,365  
                       
    Preferred stock   —       —       —       —       —  
    Common stock, $1.667 par value   125,679       125,455       125,139       125,090       125,009  
    Capital surplus   1,123,330       1,122,147       1,117,279       1,115,759       1,114,038  
    Retained earnings   1,039,518       1,007,775       985,343       961,162       937,065  
    Common stock issued to deferred compensation                  
    trust, at cost   (21,969 )     (21,868 )     (22,224 )     (22,756 )     (20,915 )
    Deferred compensation trust   21,969       21,868       22,224       22,756       20,915  
    Accumulated other comprehensive income (loss)   (87,869 )     (116,045 )     (81,482 )     (129,224 )     (126,586 )
    TOTAL SHAREHOLDERS’ EQUITY   2,200,658       2,139,332       2,146,279       2,072,787       2,049,526  
    Noncontrolling interest   16,320       16,295       16,436       16,529       16,346  
    TOTAL EQUITY   2,216,978       2,155,627       2,162,715       2,089,316       2,065,872  
    TOTAL LIABILITIES AND EQUITY $ 17,511,880     $ 17,246,890     $ 17,188,020     $ 17,068,843     $ 16,884,237  
    TOWNEBANK
    Consolidated Statements of Income – Five Quarter Trend (unaudited)
    (dollars in thousands, except share data)
       
       
      Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
        2025       2024       2024       2024       2024  
    INTEREST INCOME:                  
    Loans, including fees $ 152,322     $ 154,933     $ 155,792     $ 154,549     $ 150,974  
    Investment securities   22,839       22,236       22,334       22,928       19,996  
    Interest-bearing deposits in financial institutions and federal funds sold   11,801       15,796       15,249       14,512       14,234  
    Mortgage loans held for sale   2,653       3,087       3,247       2,945       1,716  
    Total interest income   189,615       196,052       196,622       194,934       186,920  
    INTEREST EXPENSE:                  
    Deposits   67,133       75,885       82,128       82,023       78,388  
    Advances from the FHLB   25       26       29       942       2,438  
    Subordinated debt, net   2,304       2,261       2,237       2,236       2,236  
    Repurchase agreements and other borrowings   (325 )     (177 )     (54 )     685       640  
    Total interest expense   69,137       77,995       84,340       85,886       83,702  
    Net interest income   120,478       118,057       112,282       109,048       103,218  
    PROVISION FOR CREDIT LOSSES   2,420       1,606       (1,100 )     (177 )     (877 )
    Net interest income after provision for credit losses   118,058       116,451       113,382       109,225       104,095  
    NONINTEREST INCOME:                  
    Residential mortgage banking income, net   10,361       11,272       11,786       13,422       10,477  
    Insurance commissions and related income, net   26,424       23,265       25,727       24,031       25,539  
    Property management income, net   19,500       8,186       11,221       14,312       16,773  
    Service charges on deposit accounts   3,327       3,289       3,117       3,353       3,079  
    Credit card merchant fees, net   1,697       1,486       1,830       1,662       1,551  
    Investment commissions, net   3,075       3,195       2,835       2,580       2,343  
    BOLI   1,872       4,478       1,886       3,238       1,842  
    Other income   5,310       3,932       3,834       3,324       2,206  
    Net gain on investment securities   —       —       —       —       74  
    Total noninterest income   71,566       59,103       62,236       65,922       63,884  
    NONINTEREST EXPENSE:                  
    Salaries and employee benefits   75,078       74,399       72,123       71,349       71,377  
    Occupancy   9,333       9,819       9,351       9,717       9,422  
    Furniture and equipment   4,621       4,850       4,657       4,634       4,478  
    Amortization – intangibles   3,026       3,095       3,130       3,298       3,246  
    Software   6,293       6,870       6,790       7,056       6,100  
    Data processing   3,835       3,788       4,701       4,606       3,916  
    Professional fees   2,653       3,446       4,720       3,788       3,180  
    Advertising and marketing   4,472       3,359       4,162       3,524       4,582  
    Other expenses   21,225       17,815       17,266       16,012       19,290  
    Total noninterest expense   130,536       127,441       126,900       123,984       125,591  
    Income before income tax expense and noncontrolling interest   59,088       48,113       48,718       51,163       42,388  
    Provision for income tax expense   8,201       6,672       5,592       8,124       7,261  
    Net income   50,887       41,441       43,126       43,039       35,127  
    Net income attributable to noncontrolling interest   (295 )     (176 )     (177 )     (183 )     (440 )
    Net income attributable to TowneBank $ 50,592     $ 41,265     $ 42,949     $ 42,856     $ 34,687  
    Per common share information                  
    Basic earnings $ 0.67     $ 0.55     $ 0.57     $ 0.57     $ 0.46  
    Diluted earnings $ 0.67     $ 0.55     $ 0.57     $ 0.57     $ 0.46  
    Basic weighted average shares outstanding   75,149,668       75,034,688       74,940,827       74,925,877       74,816,420  
    Diluted weighted average shares outstanding   75,527,713       75,309,989       75,141,661       75,037,955       74,979,501  
    Cash dividends declared $ 0.25     $ 0.25     $ 0.25     $ 0.25     $ 0.25  
    TOWNEBANK
    Banking Segment Financial Information (unaudited)
    (dollars in thousands)
     
               
      Three Months Ended   Increase/(Decrease)
      March 31,   December 31,   YTD 2025 over 2024
        2025       2024       2024     Amount   Percent
    Revenue                  
    Net interest income $ 119,584     $ 102,682     $ 117,137     $ 16,902     16.46 %
    Service charges on deposit accounts   3,327       3,079       3,289       248     8.05 %
    Credit card merchant fees   1,697       1,551       1,486       146     9.41 %
    Investment commissions, net   3,075       2,343       3,195       732     31.24 %
    Other income   6,495       3,429       6,456       3,066     89.41 %
    Subtotal   14,594       10,402       14,426       4,192     40.30 %
    Net gain/(loss) on investment securities   —       74       —       (74 )   N/M
    Total noninterest income   14,594       10,476       14,426       4,118     39.31 %
    Total revenue   134,178       113,158       131,563       21,020     18.58 %
                       
    Provision for credit losses   2,367       (976 )     1,525       3,343     (342.52 )%
                       
    Expenses                  
    Salaries and employee benefits   49,684       46,474       50,130       3,210     6.91 %
    Occupancy   6,979       7,061       7,362       (82 )   (1.16 )%
    Furniture and equipment   3,808       3,648       4,087       160     4.39 %
    Amortization of intangible assets   981       1,162       1,027       (181 )   (15.58 )%
    Software   4,022       4,054       4,548       (32 )   (0.79 )%
    Data processing   2,609       2,548       2,581       61     2.39 %
    Accounting and professional fees   2,010       2,659       2,649       (649 )   (24.41 )%
    Advertising and marketing   2,897       3,008       1,985       (111 )   (3.69 )%
    FDIC and other insurance   2,590       4,122       2,244       (1,532 )   (37.17 )%
    Acquisition related   420       147       268       273     185.71 %
    Other expenses   11,971       10,415       11,315       1,556     14.94 %
    Total expenses   87,971       85,298       88,196       2,673     3.13 %
    Income before income tax, corporate allocation and noncontrolling interest   43,840       28,836       41,842       15,004     52.03 %
    Corporate allocation   1,396       1,069       1,172       327     30.59 %
    Income before income tax provision and noncontrolling interest   45,236       29,905       43,014       15,331     51.27 %
    Provision for income tax expense   4,681       4,105       5,275       576     14.03 %
    Net income   40,555       25,800       37,739       14,755     57.19 %
    Noncontrolling interest   42       120       (63 )     (78 )   (65.00 )%
    Net income attributable to TowneBank $ 40,597     $ 25,920     $ 37,676     $ 14,677     56.62 %
                       
    Efficiency ratio (non-GAAP)   64.83 %     74.40 %     66.26 %   (9.57 )%   (12.86 )%
    TOWNEBANK
    Mortgage Segment Financial Information (unaudited)
    (dollars in thousands)
     
           
      Three Months Ended   Increase/(Decrease)
      March 31,   December 31,   YTD 2025 over 2024
        2025       2024       2024     Amount   Percent
    Revenue                  
    Residential mortgage brokerage income, net $ 10,580     $ 10,798     $ 11,580     $ (218 )   (2.02 )%
    Income (loss) from unconsolidated subsidiary   42       30       68       12     40.00 %
    Net interest and other income   1,110       768       1,661       342     44.53 %
    Total revenue   11,732       11,596       13,309       136     1.17 %
                       
    Provision for credit losses   53       99       81       (46 )   (46.46 )%
                       
    Expenses                  
    Salaries and employee benefits   7,031       6,656       6,712       375     5.63 %
    Occupancy   939       1,061       981       (122 )   (11.50 )%
    Furniture and equipment   195       178       158       17     9.55 %
    Amortization of intangible assets   —       144       —       (144 )   (100.00 )%
    Software   727       787       719       (60 )   (7.62 )%
    Data processing   163       148       194       15     10.14 %
    Accounting and professional fees   226       234       252       (8 )   (3.42 )%
    Advertising and marketing   389       382       406       7     1.83 %
    FDIC and other insurance   96       102       112       (6 )   (5.88 )%
    Acquisition related   —       —       —       —     N/M
    Other expenses   2,461       2,222       2,652       239     10.76 %
    Total expenses   12,227       11,914       12,186       313     2.63 %
                       
    Income before income tax, corporate allocation and noncontrolling interest   (548 )     (417 )     1,042       (131 )   31.41 %
    Corporate allocation   (350 )     (348 )     (437 )     (2 )   0.57 %
    Income before income tax provision and noncontrolling interest   (898 )     (765 )     605       (133 )   17.39 %
    Provision for income tax expense   (240 )     (202 )     121       (38 )   18.81 %
    Net income   (658 )     (563 )     484       (95 )   16.87 %
    Noncontrolling interest   (117 )     (115 )     (156 )     (2 )   1.74 %
    Net income attributable to TowneBank $ (775 )   $ (678 )   $ 328     $ (97 )   14.31 %
                       
    Efficiency ratio excluding gain on equity investment (non-GAAP)   104.22 %     101.50 %     91.56 %     2.72 %   2.68 %
    TOWNEBANK
    Resort Property Management Segment Financial Information (unaudited)
    (dollars in thousands)
     
               
      Three Months Ended   Increase/(Decrease)
      March 31,   December 31,   YTD 2025 over 2024
        2025       2024       2024     Amount   Percent
    Revenue                  
    Property management fees, net $ 19,500     $ 16,773     $ 8,186     $ 2,727     16.26 %
    Net interest and other income   13       16       3       (3 )   (18.75 )%
    Total revenue   19,513       16,789       8,189       2,724     16.22 %
                       
    Expenses                  
    Salaries and employee benefits   5,448       5,532       4,796       (84 )   (1.52 )%
    Occupancy   614       508       640       106     20.87 %
    Furniture and equipment   405       416       435       (11 )   (2.64 )%
    Amortization of intangible assets   637       533       637       104     19.51 %
    Software   859       608       939       251     41.28 %
    Data processing   944       1,102       896       (158 )   (14.34 )%
    Accounting and professional fees   126       152       304       (26 )   (17.11 )%
    Advertising and marketing   892       1,038       807       (146 )   (14.07 )%
    FDIC and other insurance   67       35       70       32     91.43 %
    Acquisition related   —       447       —       (447 )   (100.00 )%
    Other expenses   2,613       942       466       1,671     177.39 %
    Total expenses   12,605       11,313       9,990       1,292     11.42 %
                       
    Income before income tax, corporate allocation and noncontrolling interest   6,908       5,476       (1,801 )     1,432     26.15 %
    Corporate allocation   (320 )     —       —       (320 )   N/M
    Income before income tax provision and noncontrolling interest   6,588       5,476       (1,801 )     1,112     20.31 %
    Provision for income tax expense   1,629       1,358       (337 )     271     19.96 %
    Net income   4,959       4,118       (1,464 )     841     20.42 %
    Noncontrolling interest   (220 )     (445 )     43       225     (50.56 )%
    Net income attributable to TowneBank $ 4,739     $ 3,673     $ (1,421 )   $ 1,066     29.02 %
                       
    Efficiency ratio excluding gain on equity investment (non-GAAP)   61.33 %     64.21 %     114.21 %   (2.88 )%   (4.49 )%
    TOWNEBANK
    Insurance Segment Financial Information (unaudited)
    (dollars in thousands)
     
               
      Three Months Ended   Increase/(Decrease)
      March 31,   December 31,   YTD 2025 over 2024
        2025       2024       2024     Amount   Percent
    Commission and fee income                  
    Property and casualty $ 23,322     $ 20,722     $ 20,576     $ 2,600     12.55 %
    Employee benefits   4,725       4,826       4,335       (101 )   (2.09 )%
    Specialized benefit services   —       9       1       (9 )   (100.00 )%
    Total commissions and fees   28,047       25,557       24,912       2,490     9.74 %
                       
    Contingency and bonus revenue   3,620       4,503       2,924       (883 )   (19.61 )%
    Other income   4       11       221       (7 )   (63.64 )%
    Total revenue   31,671       30,071       28,057       1,600     5.32 %
                       
    Employee commission expense   5,050       4,512       3,958       538     11.92 %
    Revenue, net of commission expense   26,621       25,559       24,099       1,062     4.16 %
                       
    Salaries and employee benefits   12,915       12,715       12,761       200     1.57 %
    Occupancy   801       792       836       9     1.14 %
    Furniture and equipment   213       236       170       (23 )   (9.75 )%
    Amortization of intangible assets   1,408       1,407       1,431       1     0.07 %
    Software   685       651       664       34     5.22 %
    Data processing   119       118       117       1     0.85 %
    Accounting and professional fees   291       135       241       156     115.56 %
    Advertising and marketing   294       154       161       140     90.91 %
    FDIC and other insurance   107       99       108       8     8.08 %
    Acquisition related   —       1       —       (1 )   (100.00 )%
    Other expenses   900       758       580       142     18.73 %
    Total operating expenses   17,733       17,066       17,069       667     3.91 %
    Income before income tax, corporate allocation and noncontrolling interest   8,888       8,493       7,030       395     4.65 %
    Corporate allocation   (726 )     (721 )     (735 )     (5 )   0.69 %
    Income before income tax provision and noncontrolling interest   8,162       7,772       6,295       390     5.02 %
    Provision for income tax expense   2,131       2,000       1,613       131     6.55 %
    Net income   6,031       5,772       4,682       259     4.49 %
    Noncontrolling interest   —       —       —       —     N/M
    Net income attributable to TowneBank $ 6,031     $ 5,772     $ 4,682     $ 259     4.49 %
                    0      
    Provision for income taxes   2,131       2,000       1,613       131     6.55 %
    Depreciation, amortization and interest expense   1,527       1,553       1,550       (26 )   (1.67 )%
    EBITDA (non-GAAP) $ 9,689     $ 9,325     $ 7,845     $ 364     3.90 %
                       
    Efficiency ratio (non-GAAP)   61.32 %     61.27 %     65.48 %     0.05 %   0.08 %
    TOWNEBANK
    Reconciliation of Non-GAAP Financial Measures
    (dollars in thousands)
     
      Three Months Ended
      March 31,   March 31,   December 31,
        2025       2024       2024  
               
    Return on average assets (GAAP)   1.19 %     0.83 %     0.95 %
    Impact of excluding average goodwill and other
     intangibles and amortization    		   0.10 %     0.09 %     0.08 %
    Return on average tangible assets (non-GAAP)   1.29 %     0.92 %     1.03 %
               
    Return on average equity (GAAP)   9.50 %     6.84 %     7.64 %
    Impact of excluding average goodwill and other
     intangibles and amortization    		   3.58 %     3.03 %     3.04 %
    Return on average tangible equity (non-GAAP)   13.08 %     9.87 %     10.68 %
               
    Return on average common equity (GAAP)   9.57 %     6.89 %     7.70 %
    Impact of excluding average goodwill and other
     intangibles and amortization    		   3.64 %     3.09 %     3.09 %
    Return on average tangible common equity
    (non-GAAP)    		   13.21 %     9.98 %     10.79 %
               
    Book value (GAAP) $ 29.19     $ 27.33     $ 28.43  
    Impact of excluding average goodwill and other
     intangibles and amortization    		   (6.83 )     (7.02 )     (6.88 )
    Tangible book value (non-GAAP) $ 22.36     $ 20.31     $ 21.55  
               
    Efficiency ratio (GAAP)   67.97 %     75.16 %     71.94 %
    Impact of exclusions (0.87 )%   (1.91 )%   (1.66 )%
    Efficiency ratio (non-GAAP)   67.10 %     73.25 %     70.28 %
               
    Average assets (GAAP) $ 17,211,862     $ 16,864,235     $ 17,349,128  
    Less: average goodwill and intangible assets   516,661       522,675       519,691  
    Average tangible assets (non-GAAP) $ 16,695,201     $ 16,341,560     $ 16,829,437  
               
    Average equity (GAAP) $ 2,160,014     $ 2,040,275     $ 2,148,111  
    Less: average goodwill and intangible assets   516,661       522,675       519,691  
    Average tangible equity (non-GAAP) $ 1,643,353     $ 1,517,600     $ 1,628,420  
               
    Average common equity (GAAP) $ 2,143,806     $ 2,024,169     $ 2,131,778  
    Less: average goodwill and intangible assets   516,661       522,675       519,691  
    Average tangible common equity (non-GAAP) $ 1,627,145     $ 1,501,494     $ 1,612,087  
               
    Net income (GAAP) $ 50,592     $ 34,687     $ 41,265  
    Amortization of intangibles, net of tax   2,391       2,564       2,445  
    Tangible net income (non-GAAP) $ 52,983     $ 37,251     $ 43,710  
               
    Total revenue (GAAP) $ 192,044     $ 167,102     $ 177,160  
    Net (gain)/loss on investment securities/equity investments   (2,000 )     (74 )     (218 )
    Total revenue for efficiency calculation (non-GAAP) $ 190,044     $ 167,028     $ 176,942  
               
    Noninterest expense (GAAP) $ 130,536     $ 125,591     $ 127,441  
    Less: amortization of intangibles   3,026       3,246       3,095  
    Noninterest expense net of amortization (non-GAAP) $ 127,510     $ 122,345     $ 124,346  
    TOWNEBANK
    Reconciliation of Non-GAAP Financial Measures
    (dollars in thousands, except per share data)
                       
                       
    Reconciliation of GAAP Earnings to Operating
    Earnings Excluding Certain Items Affecting
    Comparability    		 Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
        2025       2024       2024       2024       2024  
    Net income available to common shareholders (GAAP) $ 50,592     $ 41,265     $ 42,949     $ 42,856     $ 34,687  
                       
    Adjustments                  
    Plus: Acquisition-related expenses, net of tax   389       250       460       18       564  
    Plus: Initial provision for acquired loans, net of tax   —       —       —       —       —  
    Plus: FDIC special assessment, net of tax   —       —       —       (310 )     1,021  
    Less: Gain on sale of equity investments, net of noncontrolling interest   —       (99 )     (16 )     —       —  
    Core operating earnings, excluding certain items affecting comparability (non-GAAP) $ 50,981     $ 41,416     $ 43,393     $ 42,564     $ 36,272  
    Annualized interest impact of Series IV Notes, net of tax   42       —       —       —       —  
    Core net income for diluted earnings (non-GAAP) $ 51,023     $ 41,416     $ 43,393     $ 42,564     $ 36,272  
                       
    Weighted average diluted shares   75,527,713       75,309,989       75,141,661       75,037,955       74,979,501  
    Diluted EPS (GAAP) $ 0.67     $ 0.55     $ 0.57     $ 0.57     $ 0.46  
    Diluted EPS, excluding certain items affecting
     comparability (non-GAAP)    		 $ 0.68     $ 0.55     $ 0.58     $ 0.57     $ 0.48  
    Average assets $ 17,211,862     $ 17,349,128     $ 17,028,141     $ 16,982,482     $ 16,864,235  
    Average tangible equity $ 1,643,353     $ 1,628,420     $ 1,582,830     $ 1,520,500     $ 1,517,600  
    Average common tangible equity $ 1,627,145     $ 1,612,087     $ 1,566,455     $ 1,504,028     $ 1,501,494  
    Return on average assets, excluding certain items affecting comparability (non-GAAP)   1.20 %     0.95 %     1.01 %     1.01 %     0.87 %
    Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)   13.17 %     10.72 %     11.53 %     11.95 %     10.29 %
    Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)   13.30 %     10.82 %     11.65 %     12.08 %     10.40 %
    Efficiency ratio, excluding certain items affecting comparability (non-GAAP)   66.87 %     70.12 %     70.67 %     68.96 %     72.89 %

    The MIL Network –

    April 24, 2025

  • MIL-OSI: Brookline Bancorp Announces First Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income of $19.1 million, EPS of $0.21

    Operating Earnings of $20.0 million, Operating EPS of $0.22

    Quarterly Dividend of $0.135

    BOSTON, April 23, 2025 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, compared to net income of $17.5 million, or $0.20 per basic and diluted share, for the fourth quarter of 2024, and $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024. The Company reported operating earnings after tax (non-GAAP) of $20.0 million, or $0.22 per basic and diluted share, for the first quarter of 2025, compared to operating earnings after tax (non-GAAP) of $20.7 million, or $0.23 per basic and diluted share, for the fourth quarter of 2024, and $14.7 million, or $0.16 per basic and diluted share, for the first quarter of 2024.

    Commenting on the first quarter’s performance, Mr. Perrault stated, “We are pleased to report solid earnings for the first quarter of the year. Despite external economic headwinds, our bankers continue to perform well and grow deposits. The contraction in our loan portfolios is intentional as we reduce our commercial real estate exposure while increasing our participation in the C&I markets.”

    BALANCE SHEET

    Total assets at March 31, 2025 were $11.5 billion, representing a decrease of $385.5 million from $11.9 billion at December 31, 2024, primarily driven by a reduction of cash and cash equivalents and loans and leases. Total assets decreased $22.9 million from March 31, 2024.

    At March 31, 2025, total loans and leases were $9.6 billion, representing a decrease of $136.6 million from December 31, 2024, and a decrease of $12.4 million from March 31, 2024.

    Total investment securities at March 31, 2025 decreased $12.7 million to $882.4 million from $895.0 million at December 31, 2024, and increased $16.6 million from $865.8 million at March 31, 2024. Total cash and cash equivalents at March 31, 2025 decreased $186.1 million to $357.5 million from $543.7 million at December 31, 2024, and increased $55.7 million from $301.9 million at March 31, 2024. As of March 31, 2025, total investment securities and total cash and cash equivalents represented 10.8 percent of total assets, compared to 12.1 percent and 10.1 percent as of December 31, 2024 and March 31, 2024, respectively.

    Total deposits at March 31, 2025 increased $9.8 million to $8.9 billion from December 31, 2024, primarily driven by an increase of $113.8 million in customer deposits partially offset by a decline of $104.0 million in brokered deposits. Total deposits increased $192.8 million from $8.7 billion at March 31, 2024, primarily driven by an increase of $398.8 million in customer deposits partially offset by a decline of $206.0 million in brokered deposits.

    Total borrowed funds at March 31, 2025 decreased $364.0 million to $1.2 billion from December 31, 2024, and decreased $206.1 million from $1.4 billion at March 31, 2024.

    The ratio of stockholders’ equity to total assets was 10.77 percent at March 31, 2025, as compared to 10.26 percent at December 31, 2024, and 10.35 percent at March 31, 2024. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.73 percent at March 31, 2025, as compared to 8.27 percent at December 31, 2024, and 8.25 percent at March 31, 2024. Tangible book value per common share (non-GAAP) increased $0.22 from $10.81 at December 31, 2024 to $11.03 at March 31, 2025, and increased $0.56 from $10.47 at March 31, 2024.

    NET INTEREST INCOME

    Net interest income increased $0.8 million to $85.8 million during the first quarter of 2025 from $85.0 million for the quarter ended December 31, 2024. The net interest margin increased 10 basis points to 3.22 percent for the three months ended March 31, 2025 from 3.12 percent for the three months ended December 31, 2024, primarily driven by lower funding costs partially offset by lower yields on loans and leases.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended March 31, 2025 decreased $0.9 million to $5.7 million from $6.6 million for the quarter ended December 31, 2024. The decrease was primarily driven by a decline of $1.0 million in loan level derivative income, net.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $6.0 million for the quarter ended March 31, 2025, compared to $4.1 million for the quarter ended December 31, 2024. The increase in provision was largely driven by deterioration in a single commercial credit that required a specific reserve.

    Total net charge-offs for the first quarter of 2025 were $7.6 million, compared to $7.3 million in the fourth quarter of 2024. The $7.6 million in net charge-offs was driven by one large $7.1 million charge-off in commercial loans, the majority of which was previously reserved for. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis increased to 31 basis points for the first quarter of 2025 from 30 basis points for the fourth quarter of 2024.

    The allowance for loan and lease losses represented 1.29 percent of total loans and leases at March 31, 2025, compared to 1.28 percent at December 31, 2024, and 1.24 percent at March 31, 2024.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.65 percent at March 31, 2025, a decrease from 0.71 percent at December 31, 2024. Total nonaccrual loans and leases decreased $6.2 million to $63.1 million at March 31, 2025 from $69.3 million at December 31, 2024. The ratio of nonperforming assets to total assets was 0.56 percent at March 31, 2025, a decrease from 0.59 percent at December 31, 2024. Total nonperforming assets decreased $6.4 million to $64.0 million at March 31, 2025 from $70.5 million at December 31, 2024.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended March 31, 2025 decreased $3.7 million to $60.0 million from $63.7 million for the quarter ended December 31, 2024. The decrease was primarily driven by a decrease of $2.4 million in merger and acquisition expense related to the previously announced proposed merger of the Company with Berkshire Hills Bancorp, Inc. (“Berkshire”), and a decrease of $1.3 million in compensation and employee benefits expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 25.0 percent for the three months ended March 31, 2025 compared to 26.4 percent for the three months ended December 31, 2024 and 24.7 percent for the three months ended March 31, 2024.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.66 percent during the first quarter 2025 from 0.61 percent for the fourth quarter of 2024.

    The annualized return on average stockholders’ equity increased to 6.19 percent during the first quarter of 2025 from 5.69 percent for the fourth quarter of 2024. The annualized return on average tangible stockholders’ equity (non-GAAP) increased to 7.82 percent for the first quarter of 2025 from 7.21 percent for the fourth quarter of 2024.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended March 31, 2025. The dividend will be paid on May 23, 2025 to stockholders of record on May 9, 2025.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, April 24, 2025 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/955891780. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 941481). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode:324302.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.5 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the “banks”). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

    FORWARD-LOOKING STATEMENTS

    Certain statements contained in this press release that are not historical facts may constitute 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, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of the Company or Berkshire to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Company; delays in completing the proposed transaction with Berkshire; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction) or stockholder approvals, or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties’ ability to pursue certain business opportunities and strategic transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; changes in interest rates; general economic conditions (including the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    BASIS OF PRESENTATION

    The Company’s consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period’s presentation.

    NON-GAAP FINANCIAL MEASURES

    The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders’ equity, operating return on average tangible stockholders’ equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders’ equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company’s GAAP to the non-GAAP measures is attached.

    INVESTOR RELATIONS:
    Contact: Carl M. Carlson
    Brookline Bancorp, Inc.
    Co-President and Chief Financial and Strategy Officer
    (617) 425-5331
    carl.carlson@brkl.com
       
     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Selected Financial Highlights (Unaudited)
                                 
      At and for the Three Months Ended
      March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     March 31,
    2024    		  
      (Dollars In Thousands Except per Share Data)
    Earnings Data:                        
    Net interest income $ 85,830     $ 84,988     $ 83,008     $ 80,001     $ 81,588  
    Provision for credit losses on loans 5,974     4,141     4,832     5,607     7,423  
    Provision (recovery) of credit losses on investments 12     (104 )   (172 )   (39 )   (44 )
    Non-interest income 5,660     6,587     6,348     6,396     6,284  
    Non-interest expense 60,022     63,719     57,948     59,184     61,014  
    Income before provision for income taxes 25,482     23,819     26,748     21,645     19,479  
    Net income 19,100     17,536     20,142     16,372     14,665  
                                 
    Performance Ratios:                            
    Net interest margin (1) 3.22 %   3.12 %   3.07 %   3.00 %   3.06 %
    Interest-rate spread (1) 2.38 %   2.35 %   2.26 %   2.14 %   2.21 %
    Return on average assets (annualized) 0.66 %   0.61 %   0.70 %   0.57 %   0.51 %
    Return on average tangible assets (annualized) (non-GAAP) 0.68 %   0.62 %   0.72 %   0.59 %   0.53 %
    Return on average stockholders’ equity (annualized) 6.19 %   5.69 %   6.63 %   5.49 %   4.88 %
    Return on average tangible stockholders’ equity (annualized) (non-GAAP) 7.82 %   7.21 %   8.44 %   7.04 %   6.26 %
    Efficiency ratio (2) 65.60 %   69.58 %   64.85 %   68.50 %   69.44 %
                                 
    Per Common Share Data:                            
    Net income — Basic $ 0.21     $ 0.20     $ 0.23     $ 0.18     $ 0.16  
    Net income — Diluted 0.21     0.20     0.23     0.18     0.16  
    Cash dividends declared 0.135     0.135     0.135     0.135     0.135  
    Book value per share (end of period) 13.92     13.71     13.81     13.48     13.43  
    Tangible book value per share (end of period) (non-GAAP) 11.03     10.81     10.89     10.53     10.47  
    Stock price (end of period) 10.90     11.80     10.09     8.35     9.96  
                                 
    Balance Sheet:                            
    Total assets $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292     $ 11,542,731  
    Total loans and leases 9,642,722     9,779,288     9,755,236     9,721,137     9,655,086  
    Total deposits 8,911,452     8,901,644     8,732,271     8,737,036     8,718,653  
    Total stockholders’ equity 1,240,182     1,221,939     1,230,362     1,198,480     1,194,231  
                                 
    Asset Quality:                            
    Nonperforming assets $ 64,021     $ 70,452     $ 72,821     $ 62,683     $ 42,489  
    Nonperforming assets as a percentage of total assets 0.56 %   0.59 %   0.62 %   0.54 %   0.37 %
    Allowance for loan and lease losses $ 124,145     $ 125,083     $ 127,316     $ 121,750     $ 120,124  
    Allowance for loan and lease losses as a percentage of total loans and leases 1.29 %   1.28 %   1.31 %   1.25 %   1.24 %
    Net loan and lease charge-offs $ 7,597     $ 7,252     $ 3,808     $ 8,387     $ 8,781  
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.31 %   0.30 %   0.16 %   0.35 %   0.36 %
                                 
    Capital Ratios:                            
    Stockholders’ equity to total assets 10.77 %   10.26 %   10.54 %   10.30 %   10.35 %
    Tangible stockholders’ equity to tangible assets (non-GAAP) 8.73 %   8.27 %   8.50 %   8.23 %   8.25 %
                                 
    (1) Calculated on a fully tax-equivalent basis.
    (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.
                                 
     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets (Unaudited)
                 
      March 31,
    2025    		 December 31,
    2024    		   September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
    ASSETS (In Thousands Except Share Data)
    Cash and due from banks $ 78,741     $ 64,673     $ 82,168     $ 60,067     $ 45,708  
    Short-term investments   278,805       478,997       325,721       283,017       256,178  
    Total cash and cash equivalents   357,546       543,670       407,889       343,084       301,886  
    Investment securities available-for-sale   882,353       895,034       855,391       856,439       865,798  
    Total investment securities   882,353       895,034       855,391       856,439       865,798  
    Allowance for investment security losses   (94 )     (82 )     (186 )     (359 )     (398 )
    Net investment securities   882,259       894,952       855,205       856,080       865,400  
    Loans and leases held-for-sale   —       —       —       —       6,717  
    Loans and leases:            
    Commercial real estate loans   5,580,982       5,716,114       5,779,290       5,782,111       5,755,239  
    Commercial loans and leases   2,512,912       2,506,664       2,453,038       2,443,530       2,416,904  
    Consumer loans   1,548,828       1,556,510       1,522,908       1,495,496       1,482,943  
    Total loans and leases   9,642,722       9,779,288       9,755,236       9,721,137       9,655,086  
    Allowance for loan and lease losses   (124,145 )     (125,083 )     (127,316 )     (121,750 )     (120,124 )
    Net loans and leases   9,518,577       9,654,205       9,627,920       9,599,387       9,534,962  
    Restricted equity securities   67,537       83,155       82,675       78,963       74,709  
    Premises and equipment, net of accumulated depreciation   84,439       86,781       86,925       88,378       89,707  
    Right-of-use asset operating leases   44,144       43,527       41,934       35,691       33,133  
    Deferred tax asset   52,176       56,620       50,827       60,032       60,484  
    Goodwill   241,222       241,222       241,222       241,222       241,222  
    Identified intangible assets, net of accumulated amortization   16,030       17,461       19,162       20,830       22,499  
    Other real estate owned and repossessed assets   917       1,103       1,579       1,974       1,817  
    Other assets   255,022       282,630       261,383       309,651       310,195  
    Total assets $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292     $ 11,542,731  
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Deposits:            
    Demand checking accounts $ 1,664,629     $ 1,692,394     $ 1,681,858     $ 1,638,378     $ 1,629,371  
    NOW accounts   625,492       617,246       637,374       647,370       654,748  
    Savings accounts   1,793,852       1,721,247       1,736,989       1,735,857       1,727,893  
    Money market accounts   2,183,855       2,116,360       2,041,185       2,073,557       2,065,569  
    Certificate of deposit accounts   1,878,665       1,885,444       1,819,353       1,718,414       1,670,147  
    Brokered deposit accounts   764,959       868,953       815,512       923,460       970,925  
    Total deposits   8,911,452       8,901,644       8,732,271       8,737,036       8,718,653  
    Borrowed funds:            
    Advances from the FHLB   957,848       1,355,926       1,345,003       1,265,079       1,150,153  
    Subordinated debentures and notes   84,362       84,328       84,293       84,258       84,223  
    Other borrowed funds   113,617       79,592       68,251       80,125       127,505  
    Total borrowed funds   1,155,827       1,519,846       1,497,547       1,429,462       1,361,881  
    Operating lease liabilities   45,330       44,785       43,266       37,102       34,235  
    Mortgagors’ escrow accounts   15,264       15,875       14,456       17,117       16,245  
    Reserve for unfunded credits   5,296       5,981       6,859       11,400       15,807  
    Accrued expenses and other liabilities   146,518       195,256       151,960       204,695       201,679  
    Total liabilities   10,279,687       10,683,387       10,446,359       10,436,812       10,348,500  
    Stockholders’ equity:            
    Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively   970       970       970       970       970  
    Additional paid-in capital   903,696       902,584       901,562       904,775       903,726  
    Retained earnings   465,898       458,943       453,555       445,560       441,285  
    Accumulated other comprehensive income   (42,498 )     (52,882 )     (38,081 )     (61,693 )     (60,841 )
    Treasury stock, at cost;            
    7,037,610, 7,019,384, 7,015,843, 7,373,009, and 7,354,399 shares, respectively   (87,884 )     (87,676 )     (87,644 )     (91,132 )     (90,909 )
    Total stockholders’ equity   1,240,182       1,221,939       1,230,362       1,198,480       1,194,231  
    Total liabilities and stockholders’ equity $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292     $ 11,542,731  
                 
                 
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
       
      Three Months Ended
      March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
      (In Thousands Except Share Data)
    Interest and dividend income:          
    Loans and leases $ 143,309   $ 147,436     $ 149,643     $ 145,585     $ 145,265  
    Debt securities   6,765     6,421       6,473       6,480       6,878  
    Restricted equity securities   1,203     1,460       1,458       1,376       1,492  
    Short-term investments   2,451     2,830       1,986       1,914       1,824  
    Total interest and dividend income   153,728     158,147       159,560       155,355       155,459  
    Interest expense:          
    Deposits   53,478     56,562       59,796       59,721       56,884  
    Borrowed funds   14,420     16,597       16,756       15,633       16,987  
    Total interest expense   67,898     73,159       76,552       75,354       73,871  
    Net interest income   85,830     84,988       83,008       80,001       81,588  
    Provision for credit losses on loans   5,974     4,141       4,832       5,607       7,423  
    Provision (recovery) of credit losses on investments   12     (104 )     (172 )     (39 )     (44 )
    Net interest income after provision for credit losses   79,844     80,951       78,348       74,433       74,209  
    Non-interest income:          
    Deposit fees   2,361     2,297       2,353       3,001       2,897  
    Loan fees   393     439       464       702       789  
    Loan level derivative income, net   70     1,115       —       106       437  
    Gain on sales of loans and leases held-for-sale   24     406       415       130       —  
    Other   2,812     2,330       3,116       2,457       2,161  
    Total non-interest income   5,660     6,587       6,348       6,396       6,284  
    Non-interest expense:          
    Compensation and employee benefits   35,853     37,202       35,130       34,762       36,629  
    Occupancy   5,721     5,393       5,343       5,551       5,769  
    Equipment and data processing   7,012     6,780       6,831       6,732       7,031  
    Professional services   1,726     1,345       2,143       1,745       1,900  
    FDIC insurance   2,037     2,017       2,118       2,025       1,884  
    Advertising and marketing   868     1,303       859       1,504       1,574  
    Amortization of identified intangible assets   1,430     1,701       1,668       1,669       1,708  
    Merger and restructuring expense   971     3,378       —       823       —  
    Other   4,404     4,600       3,856       4,373       4,519  
    Total non-interest expense   60,022     63,719       57,948       59,184       61,014  
    Income before provision for income taxes   25,482     23,819       26,748       21,645       19,479  
    Provision for income taxes   6,382     6,283       6,606       5,273       4,814  
    Net income $ 19,100   $ 17,536     $ 20,142     $ 16,372     $ 14,665  
    Earnings per common share:          
    Basic $ 0.21   $ 0.20     $ 0.23     $ 0.18     $ 0.16  
    Diluted $ 0.21   $ 0.20     $ 0.23     $ 0.18     $ 0.16  
    Weighted average common shares outstanding during the period:        
    Basic   89,103,510     89,098,443       89,033,463       88,904,692       88,894,577  
    Diluted   89,567,747     89,483,964       89,319,611       89,222,315       89,181,508  
    Dividends paid per common share $ 0.135   $ 0.135     $ 0.135     $ 0.135     $ 0.135  
               
               
     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (Unaudited)
       
      At and for the Three Months Ended
      March 31,
    2025    		 December 31,
    2024    		   September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
      (Dollars in Thousands)
    NONPERFORMING ASSETS:            
    Loans and leases accounted for on a nonaccrual basis:            
    Commercial real estate mortgage $ 10,842     $ 11,525     $ 11,595     $ 11,659     $ 18,394  
    Multi-family mortgage   6,576       6,596       1,751       —       —  
    Total commercial real estate loans   17,418       18,121       13,346       11,659       18,394  
                 
    Commercial   7,415       14,676       15,734       16,636       3,096  
    Equipment financing   32,975       31,509       37,223       27,128       13,668  
    Total commercial loans and leases   40,390       46,185       52,957       43,764       16,764  
                 
    Residential mortgage   3,962       3,999       3,862       4,495       4,563  
    Home equity   1,333       1,043       1,076       790       950  
    Other consumer   1       1       1       1       1  
    Total consumer loans   5,296       5,043       4,939       5,286       5,514  
                 
    Total nonaccrual loans and leases   63,104       69,349       71,242       60,709       40,672  
                 
    Other real estate owned   700       700       780       780       780  
    Other repossessed assets   217       403       799       1,194       1,037  
    Total nonperforming assets $ 64,021     $ 70,452     $ 72,821     $ 62,683     $ 42,489  
                 
    Loans and leases past due greater than 90 days and still accruing $ 3,009     $ 811     $ 16,091     $ 4,994     $ 363  
                 
    Nonperforming loans and leases as a percentage of total loans and leases   0.65 %     0.71 %     0.73 %     0.62 %     0.42 %
    Nonperforming assets as a percentage of total assets   0.56 %     0.59 %     0.62 %     0.54 %     0.37 %
                 
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:        
    Allowance for loan and lease losses at beginning of period $ 125,083     $ 127,316     $ 121,750     $ 120,124     $ 117,522  
    Charge-offs   (9,073 )     (8,414 )     (4,183 )     (8,823 )     (5,390 )
    Recoveries   1,476       1,162       375       436       309  
    Net charge-offs   (7,597 )     (7,252 )     (3,808 )     (8,387 )     (5,081 )
    Provision for loan and lease losses excluding unfunded commitments *   6,659       5,019       9,374       10,013       7,683  
    Allowance for loan and lease losses at end of period $ 124,145     $ 125,083     $ 127,316     $ 121,750     $ 120,124  
                 
    Allowance for loan and lease losses as a percentage of total loans and leases   1.29 %     1.28 %     1.31 %     1.25 %     1.24 %
                 
    NET CHARGE-OFFS:            
    Commercial real estate loans $ —     $ —     $ —     $ 3,819     $ 606  
    Commercial loans and leases **   7,647       7,257       3,797       4,571       8,179  
    Consumer loans   (50 )     (5 )     11       (3 )     (4 )
    Total net charge-offs $ 7,597     $ 7,252     $ 3,808     $ 8,387     $ 8,781  
                 
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.31 %     0.30 %     0.16 %     0.35 %     0.36 %
                 
    *Provision for loan and lease losses does not include (credit) provision of $(0.7 million), $(0.9 million), $(4.5 million), $(4.4 million), and $(0.3 million) for credit losses on unfunded commitments during the three months ended March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
    ** The balance at March 31, 2024 includes a $3.7 million charge-off on a letter of credit which impacted the provision.
                 
     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
     
      Three Months Ended
      March 31, 2025 December 31, 2024 March 31, 2024
      Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost Average Balance Interest (1) Average Yield/ Cost
      (Dollars in Thousands)
    Assets:                  
    Interest-earning assets:                  
    Investments:                  
    Debt securities (2) $ 888,913   $ 6,814 3.07 %   $ 856,065   $ 6,463 3.02 %   $ 893,228   $ 6,927 3.10 %
    Restricted equity securities (2)   69,784     1,204 6.90 %     75,879     1,459 7.69 %     76,335     1,493 7.82 %
    Short-term investments   202,953     2,451 4.83 %     236,784     2,830 4.78 %     130,768     1,824 5.58 %
    Total investments   1,161,650     10,469 3.60 %     1,168,728     10,752 3.68 %     1,100,331     10,244 3.72 %
    Loans and Leases:                  
    Commercial real estate loans (3)   5,651,390     77,243 5.47 %     5,752,591     81,195 5.52 %     5,761,735     81,049 5.56 %
    Commercial loans (3)   1,237,078     19,698 6.37 %     1,170,295     19,750 6.61 %     1,026,467     17,507 6.75 %
    Equipment financing (3)   1,281,425     25,965 8.11 %     1,310,143     26,295 8.03 %     1,374,426     26,895 7.83 %
    Consumer loans (3)   1,548,973     20,861 5.41 %     1,529,654     20,881 5.44 %     1,482,819     19,978 5.40 %
    Total loans and leases   9,718,866     143,767 5.92 %     9,762,683     148,121 6.07 %     9,645,447     145,429 6.03 %
    Total interest-earning assets   10,880,516     154,236 5.67 %     10,931,411     158,873 5.81 %     10,745,778     155,673 5.79 %
    Non-interest-earning assets   662,814         649,161         671,407      
    Total assets $ 11,543,330       $ 11,580,572       $ 11,417,185      
                       
    Liabilities and Stockholders’ Equity:                  
    Interest-bearing liabilities:                  
    Deposits:                  
    NOW accounts $ 628,346     1,005 0.65 %   $ 630,408     1,056 0.67 %   $ 671,914     1,261 0.75 %
    Savings accounts   1,743,688     10,173 2.37 %     1,741,355     10,896 2.49 %     1,694,220     11,352 2.69 %
    Money market accounts   2,187,581     13,587 2.52 %     2,083,033     13,856 2.65 %     2,076,303     15,954 3.09 %
    Certificates of deposit   1,886,386     19,593 4.21 %     1,857,483     20,691 4.43 %     1,624,118     16,672 4.13 %
    Brokered deposit accounts   767,275     9,120 4.82 %     797,910     10,063 5.02 %     896,784     11,645 5.22 %
    Total interest-bearing deposits   7,213,276     53,478 3.01 %     7,110,189     56,562 3.16 %     6,963,339     56,884 3.29 %
    Borrowings                  
    Advances from the FHLB   1,007,508     11,847 4.70 %     1,144,157     13,958 4.77 %     1,164,534     14,633 4.97 %
    Subordinated debentures and notes   84,345     1,701 8.07 %     84,311     1,944 9.22 %     84,206     1,377 6.54 %
    Other borrowed funds   71,462     872 4.95 %     65,947     695 4.20 %     93,060     977 4.22 %
    Total borrowings   1,163,315     14,420 4.96 %     1,294,415     16,597 5.02 %     1,341,800     16,987 5.01 %
    Total interest-bearing liabilities   8,376,591     67,898 3.29 %     8,404,604     73,159 3.46 %     8,305,139     73,871 3.58 %
    Non-interest-bearing liabilities:                  
    Demand checking accounts   1,680,527         1,693,138         1,631,472      
    Other non-interest-bearing liabilities   251,011         250,303         278,670      
    Total liabilities   10,308,129         10,348,045         10,215,281      
    Stockholders’ equity   1,235,201         1,232,527         1,201,904      
    Total liabilities and equity $ 11,543,330       $ 11,580,572       $ 11,417,185      
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)     86,338 2.38 %       85,714 2.35 %       81,802 2.21 %
    Less adjustment of tax-exempt income     508       726       214  
    Net interest income   $ 85,830     $ 84,988     $ 81,588  
    Net interest margin (5)     3.22 %       3.12 %       3.06 %
                       
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) 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 (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
                       
     
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
     
            At and for the
    Three Months Ended
    March 31,
              2025       2024  
    Reconciliation Table – Non-GAAP Financial Information     (Dollars in Thousands Except Share Data)
             
    Reported Pretax Income     $ 25,482     $ 19,479  
    Add:          
    Merger and restructuring expense       971       —  
    Operating Pretax Income       $ 26,453     $ 19,479  
    Effective tax rate         24.3 %     24.7 %
    Provision for income taxes         6,416       4,814  
    Operating earnings after tax     $ 20,037     $ 14,665  
               
    Operating earnings per common share:          
    Basic       $ 0.22     $ 0.16  
    Diluted       $ 0.22     $ 0.16  
               
    Weighted average common shares outstanding during the period:        
    Basic         89,103,510       88,894,577  
    Diluted         89,567,747       89,181,508  
               
    Return on average assets *       0.66 %     0.51 %
    Add:          
    Merger and restructuring expense (after-tax) *       0.03 %     — %
    Operating return on average assets *       0.69 %     0.51 %
               
    Return on average tangible assets *       0.68 %     0.53 %
    Add:          
    Merger and restructuring expense (after-tax) *       0.03 %     — %
    Operating return on average tangible assets *       0.71 %     0.53 %
               
               
    Return on average stockholders’ equity *       6.19 %     4.88 %
    Add:          
    Merger and restructuring expense (after-tax) *       0.24 %     — %
    Operating return on average stockholders’ equity *       6.43 %     4.88 %
               
               
    Return on average tangible stockholders’ equity *       7.82 %     6.26 %
    Add:          
    Merger and restructuring expense (after-tax) *       0.30 %     — %
    Operating return on average tangible stockholders’ equity *       8.12 %     6.26 %
               
    * Ratios at and for the three months ended are annualized.        
             
      At and for the Three Months Ended
      March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024    		 March 31,
    2024
      (Dollars in Thousands)
               
    Net income, as reported $ 19,100     $ 17,536     $ 20,142     $ 16,372     $ 14,665  
               
    Average total assets $ 11,543,330     $ 11,580,572     $ 11,451,338     $ 11,453,394     $ 11,417,185  
    Less: Average goodwill and average identified intangible assets, net   257,941       259,496       261,188       262,859       264,536  
    Average tangible assets $ 11,285,389     $ 11,321,076     $ 11,190,150     $ 11,190,535     $ 11,152,649  
               
    Return on average tangible assets (annualized)   0.68 %     0.62 %     0.72 %     0.59 %     0.53 %
               
    Average total stockholders’ equity $ 1,235,201     $ 1,232,527     $ 1,216,037     $ 1,193,385     $ 1,201,904  
    Less: Average goodwill and average identified intangible assets, net   257,941       259,496       261,188       262,859       264,536  
    Average tangible stockholders’ equity $ 977,260     $ 973,031     $ 954,849     $ 930,526     $ 937,368  
               
    Return on average tangible stockholders’ equity (annualized)   7.82 %     7.21 %     8.44 %     7.04 %     6.26 %
               
    Total stockholders’ equity $ 1,240,182     $ 1,221,939     $ 1,230,362     $ 1,198,480     $ 1,194,231  
    Less:          
    Goodwill   241,222       241,222       241,222       241,222       241,222  
    Identified intangible assets, net   16,030       17,461       19,162       20,830       22,499  
    Tangible stockholders’ equity $ 982,930     $ 963,256     $ 969,978     $ 936,428     $ 930,510  
               
    Total assets $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292     $ 11,542,731  
    Less:          
    Goodwill   241,222       241,222       241,222       241,222       241,222  
    Identified intangible assets, net   16,030       17,461       19,162       20,830       22,499  
    Tangible assets $ 11,262,617     $ 11,646,643     $ 11,416,337     $ 11,373,240     $ 11,279,010  
               
    Tangible stockholders’ equity to tangible assets   8.73 %     8.27 %     8.50 %     8.23 %     8.25 %
               
    Tangible stockholders’ equity $ 982,930     $ 963,256     $ 969,978     $ 936,428     $ 930,510  
               
    Number of common shares issued   96,998,075       96,998,075       96,998,075       96,998,075       96,998,075  
    Less:          
    Treasury shares   7,037,610       7,019,384       7,015,843       7,373,009       7,354,399  
    Unvested restricted shares   855,860       880,248       883,789       713,443       749,099  
    Number of common shares outstanding   89,104,605       89,098,443       89,098,443       88,911,623       88,894,577  
               
    Tangible book value per common share $ 11.03     $ 10.81     $ 10.89     $ 10.53     $ 10.47  
               

    PDF available: http://ml.globenewswire.com/Resource/Download/e23d70f5-f96e-4a22-ac83-0bee735aa434

    The MIL Network –

    April 24, 2025

  • MIL-OSI: Origin Bancorp, Inc. Reports Earnings For First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    RUSTON, La., April 23, 2025 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $22.4 million, or $0.71 diluted earnings per share (“EPS”) for the quarter ended March 31, 2025, compared to net income of $14.3 million, or $0.46 diluted earnings per share, for the quarter ended December 31, 2024. Pre-tax, pre-provision (“PTPP”)(1) earnings were $32.0 million for the quarter ended March 31, 2025, compared to $12.6 million for the linked quarter.

    “Origin reported solid results for the quarter, and I am proud of how our bankers remain responsive to our customers and communities,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “During last quarter’s earnings call, we introduced Optimize Origin, which is our plan to deliver sustainable elite-level financial performance. I am pleased with the overwhelming focus and commitment our employees have on accomplishing this goal and the progress we have made since launch.”

    (1) PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

             

    Optimize Origin

    • In January 2025, we announced our initiative to drive elite financial performance and enhance our award-winning culture.
    • Built on three primary pillars:
      • Productivity, Delivery & Efficiency
      • Balance Sheet Optimization
      • Culture & Employee Engagement
    • Established near term target of greater than a 1% ROAA run rate by 4Q25 and an ultimate target of top quartile ROAA.
    • Near term target is being achieved in part by branch consolidation, headcount reduction, securities optimization, capital optimization, cash/liquidity management, mortgage restructuring, as well as other opportunistic efficiency optimizations throughout the organization.
    • We believe the actions we have taken will drive earnings improvement of approximately $23.4 million annually on a pre-tax pre-provision basis.
             

    Financial Highlights

    • Net interest income was $78.5 million for the quarter ended March 31, 2025, reflecting an increase of $110,000, or 0.1%, compared to the linked quarter and is at its highest level in eight quarters.
    • Net income was $22.4 million for the quarter ended March 31, 2025, reflecting an increase of $8.1 million, or 57.0% compared to the linked quarter.
    • Our fully tax equivalent net interest margin (“NIM-FTE”) expanded 11 basis points for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024. This expansion was driven primarily by a 34 basis point reduction in rates paid on interest-bearing liabilities, offset by a 12 basis point decline in our yield earned on interest-earning assets.
    • Return on average assets (“ROAA”), annualized, was 0.93% for the quarter ended March 31, 2025, a 63.2% increase when compared to 0.57% in the linked quarter. PTPP ROAA(1), annualized, was 1.32% for the quarter ended March 31, 2025, reflecting an increase of 164.0% compared to 0.50% in the linked quarter.
    • Total loans held for investment (“LHFI”) were $7.59 billion at March 31, 2025, reflecting an increase of $11.8 million, or 0.2%, compared to December 31, 2024. Average LHFI were $7.50 billion for the quarter ended March 31, 2025, reflecting a decrease of $298.2 million, or 3.83%, compared to the quarter ended December 31, 2024.
    • Total deposits were $8.34 billion at March 31, 2025, reflecting an increase of $115.3 million, or 1.4%, compared to December 31, 2024. Deposits, excluding brokered deposits, were $8.29 billion at March 31, 2025, reflecting an increase of $145.5 million, or 1.8%, compared to December 31, 2024.

    (1) PTPP ROAA is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

    Results of Operations for the Quarter Ended March 31, 2025

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended March 31, 2025, was $78.5 million, an increase of $110,000, or 0.1%, compared to the quarter ended December 31, 2024. The increase was primarily driven by a $7.7 million decrease in interest expense paid on interest-bearing deposits and increases of $1.4 million and $1.3 million in interest income earned on investment securities and average interest-earning balances due from banks, partially offset by a decrease of $9.9 million in interest income earned on LHFI.

    The decrease in average rates of interest-bearing deposits during the quarter ended March 31, 2025, and two fewer days in the current quarter, reduced interest expense by $5.8 million and $1.2 million, respectively, when compared to the quarter ended December 31, 2024. The average rate on interest-bearing deposits was 3.23% for the quarter ended March 31, 2025, a decrease of 38 basis points, from 3.61% for the quarter ended December 31, 2024.

    The $1.4 million increase in interest income earned on investment securities was primarily driven by the bond portfolio optimization strategy we executed during the quarter ended December 31, 2024, in which we replaced securities with a total book value of $188.2 million and a weighted average yield of 1.51% with new securities totaling $173.7 million with a weighted average yield of 5.22%.

    The $1.3 million increase in interest income earned on average interest-earning balances due from banks was primarily driven by a $149.0 million increase in average interest-earning balances due from banks which led to a $1.8 million increase in interest income, partially offset by a reduction in average yield.

    The decrease in average LHFI principal balance, the impact of two fewer calendar days and a decline in average rates during the quarter ended March 31, 2025, resulted in decreases to interest income of $5.5 million, $2.6 million and $1.8 million, respectively, when compared to the quarter ended December 31, 2024. The decrease in average LHFI principal balance was primarily driven by decreases of $170.2 million and $114.4 million in mortgage warehouse lines of credit (“MW LOC”) and average construction/land/land development loan balances. The average rate on LHFI was 6.33% for the quarter ended March 31, 2025, a decrease of 14 basis points, compared to 6.47% for the quarter ended December 31, 2024.

    The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. On September 18, 2024, the Federal Reserve reduced the federal funds target rate range by 50 basis points, to a range of 4.75% to 5.00%, marking the first rate reduction since early 2020. Subsequently, it implemented two additional reductions, with the current federal funds target range set to 4.25% to 4.50% on December 18, 2024. The Federal Reserve maintained this target range throughout the first quarter of 2025. In total, the federal funds target range has decreased 100 basis points from its recent cycle high.

    Our NIM-FTE was 3.44% for the quarter ended March 31, 2025, representing 11- and 25-basis-point increases compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended March 31, 2025, was 5.79%, a decrease of 12 and 20 basis points compared to the linked quarter and the quarter ended March 31, 2024. The average rate paid on total interest-bearing liabilities for the quarter ended March 31, 2025, was 3.30%, representing 34- and 58-basis point decreases compared to the linked quarter and the quarter ended March 31, 2024, respectively.

    Credit Quality

    The table below includes key credit quality information:

      At and For the Three Months Ended   Change   % Change
    (Dollars in thousands, unaudited) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   Linked
    Quarter    		   Linked
    Quarter
    Past due LHFI $ 72,774     $ 42,437     $ 32,835     $ 30,337     71.5 %
    Allowance for loan credit losses (“ALCL”)   92,011       91,060       98,375       951     1.0  
    Classified loans   127,676       118,782       84,217       8,894     7.5  
    Total nonperforming LHFI   81,368       75,002       40,439       6,366     8.5  
    Provision (benefit) for credit losses   3,444       (5,398 )     3,012       8,842     N/M  
    Net charge-offs (recoveries)   2,728       (560 )     2,582       3,288     N/M  
    Credit quality ratios(1):                    
    ALCL to nonperforming LHFI   113.08 %     121.41 %     243.27 %     (8.33 )%   N/A  
    ALCL to total LHFI   1.21       1.20       1.25       0.01     N/A  
    ALCL to total LHFI, adjusted(2)   1.28       1.25       1.30       0.03     N/A  
    Classified loans to total LHFI   1.68       1.57       1.07       0.11     N/A  
    Nonperforming LHFI to LHFI   1.07       0.99       0.51       0.08     N/A  
    Net charge-offs to total average LHFI (annualized)   0.15       (0.03 )     0.13       0.18     N/A  
                                       

    ___________________________

      N/M = Not meaningful.
      N/A = Not applicable.
    (1) Please see the Loan Data schedule at the back of this document for additional information.
    (2) The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       

    Past due loans increased $30.3 million for the current quarter compared to the linked quarter. The increase was primarily due to 11 relationships totaling $39.8 million. The increase in past due loan relationships primarily consisted of residential real estate totaling $18.0 million, commercial real estate totaling $8.3 million, commercial and industrial totaling $9.7 million and construction/land/land development totaling $3.9 million. These increases were partially offset by a $4.5 million decrease in three previously past due residential real estate relationships, one of which paid off during the current quarter.

    Nonperforming LHFI increased $6.4 million for the current quarter compared to the linked quarter, evidenced by an increase in the percentage of nonperforming LHFI to LHFI to 1.07% compared to 0.99% for the linked quarter. The increase in nonperforming loans was primarily driven by two loan relationships totaling $8.2 million at March 31, 2025, with residential real estate loans totaling $5.1 million of the increase. The increase in nonperforming loans was partially offset by one residential real estate loan relationship totaling $2.1 million that paid off during the current quarter, but was considered nonperforming at December 31, 2024.

    Classified loans increased $8.9 million to $127.7 million at March 31, 2025, compared to $118.8 million at December 31, 2024. As discussed in previous filings, our classified and nonperforming LHFI were negatively impacted beginning in the second quarter of 2024 as a result of litigation against the bank brought in response to certain questioned activity involving a former banker in our East Texas market. We continue to work toward a resolution in this matter.

    Our results included a credit loss provision expense of $3.4 million during the quarter ended March 31, 2025, which includes a $3.7 million provision for loan credit losses, compared to provision release of $5.5 million for the linked quarter. Our allowance for credit losses increased $1.0 million during the current quarter, primarily driven by the $1.4 million increase in the individually evaluated portion of the reserve as a result of the increase in nonperforming loans.

    Net charge-offs increased $3.3 million for the quarter ended March 31, 2025, when compared to the quarter ended December 31, 2024, primarily due to total charge-offs of $4.8 million in the current quarter, consisting primarily of two commercial and industrial loan relationships with charge-offs totaling $2.6 million.

    Noninterest Income

    Noninterest income for the quarter ended March 31, 2025, was $15.6 million, an increase of $15.9 million from the linked quarter, primarily driven by the $14.6 million loss on sales of securities, net, in the linked quarter and the $2.5 million increase in insurance commission and fee income in the current quarter. These increases were offset by a decrease of $1.6 million in limited partnership investment (loss) income.

    The loss on sales of securities, net, during the linked quarter was due to the execution of the bond portfolio optimization strategy security sale, with no such sale in the current quarter.

    The increase in insurance commission and fee income was primarily driven by a seasonal increase in annual contingency fee income recognized in the first quarter.

    The decrease in limited partnership investment income (loss) was due to $1.6 million in fair value adjustments on multiple limited partnership investments.

    Noninterest Expense

    Noninterest expense for the quarter ended March 31, 2025, was $62.1 million, a decrease of $3.4 million, or 5.1% from the linked quarter. The decrease was primarily driven by decreases of $3.1 million, $814,000 and $796,000 in other noninterest expense, professional services and advertising and marketing expense, respectively, that was partially offset by an increase of $1.3 million in salaries and employee benefit expense.

    The decrease in other noninterest expense was primarily due to $3.1 million in contingency expense recorded during the linked quarter. There was no such contingency reserve recorded in the current quarter.

    The $814,000 decrease in professional services was primarily due to a decrease of $668,000 in forensic accounting fees compared to the linked quarter.

    The $796,000 decrease in advertising and marketing was primarily due to a decrease in targeted marketing efforts in the current quarter compared to the prior quarter.

    The $1.3 million increase in salaries and employee benefit expense was primarily due to an Employee Retention Credit (“ERC”) of $1.7 million that was recorded in the linked quarter and related to the operations of BTH Bank, N.A., which we acquired in 2022. The ERC is a refundable tax credit for certain eligible businesses that had employees affected during the COVID-19 pandemic. This was partially offset by a decrease in incentive compensation due to the adjustment of the incentive compensation accrual during the current quarter.

    Financial Condition

    Loans

    • Total LHFI at March 31, 2025, were $7.59 billion, an increase of $11.8 million, or 0.2%, from $7.57 billion at December 31, 2024, and a decrease of $314.5 million, or 4.0%, compared to March 31, 2024.
    • The primary driver of the increase during the quarter ended March 31, 2025, compared to the linked quarter, were increases in multi-family real estate, MW LOC, residential real estate – single family and commercial and industrial loans of $64.3 million, $55.1 million, $33.1 million and $19.5 million, respectively. These increases were partially offset by decreases of $93.6 million and $65.4 million in total commercial real estate and construction/land/land development loans, respectively.

    Securities

    • Total securities at March 31, 2025 were $1.18 billion, an increase of $58.8 million, or 5.3%, from $1.12 billion at December 31, 2024, and a decrease of $30.4 million, or 2.5%, compared to March 31, 2024.
    • The increase in securities was due to purchases of $73.1 million in the current quarter. This was partially offset by maturities, scheduled principal payments and calls.
    • Accumulated other comprehensive loss, net of taxes, primarily associated with unrealized losses within the available for sale portfolio, was $90.4 million at March 31, 2025, a decrease of $15.6 million, or 14.7% , from the linked quarter.
    • The weighted average effective duration for the total securities portfolio was 4.10 years as of March 31, 2025, compared to 4.46 years as of December 31, 2024.

    Deposits

    • Total deposits at March 31, 2025, were $8.34 billion, an increase of $115.3 million, or 1.4%, compared to the linked quarter, and a decrease of $167.1 million, or 2.0%, from March 31, 2024. The increase in the current quarter compared to the linked quarter was primarily due to an increase of $278.9 million in money market deposits. The increase was partially offset by decreases of $78.0 million and $67.1 million in time deposits (excluding brokered time deposits) and interest-bearing demand deposits, respectively.
    • At March 31, 2025, noninterest-bearing deposits as a percentage of total deposits were 22.7%, compared to 23.1% and 22.2% at December 31, 2024, and March 31, 2024, respectively. Excluding brokered deposits, noninterest-bearing deposits as a percentage of total deposits were 22.8%, compared to 23.3% and 23.9% at December 31, 2024, and March 31, 2024, respectively.

    Subordinate debentures

    • Total subordinated debentures at March 31, 2025, were $89.6 million, a decrease of $70.3 million, or 44.0%, from $159.9 million at December 31, 2024, and a decrease of $71.1 million, or 44.2%, compared to March 31, 2024.
    • The decrease was due to the redemption of $70.0 million in subordinated debentures in conjunction with our Optimize Origin initiative, as forecasted in our fourth quarter 2024 investor presentation. We recognized $681,000 in original issue discount amortization related to the redemption during the current quarter. Based upon our forecast, the redemption is expected to result in approximately $2.1 million in annualized future interest expense savings.

    Conference Call

    Origin will hold a conference call to discuss its first quarter 2025 results on Thursday, April 24, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (888) 700-7550 (U.S. Toll Free), enter Conference ID: 66134 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ125.

    If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

    About Origin

    Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 55 locations in Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

    Non-GAAP Financial Measures

    Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio.

    Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin Bancorp, Inc’s (“Origin”, “we”, “our” or the “Company”) future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: (1) the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the impact of tariffs, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; (2) changes in benchmark interest rates and the resulting impacts on net interest income; (3) deterioration of Origin’s asset quality; (4) factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; (5) the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; (6) changes in the value of collateral securing Origin’s loans; (7) the impact of generative artificial intelligence; (8) Origin’s ability to anticipate interest rate changes and manage interest rate risk; (9) the impact of heightened regulatory requirements, reduced debit interchange and overdraft income and the possibility of facing related adverse business consequences if our total assets grow in excess of $10 billion as of December 31 of any calendar year; (10) the effectiveness of Origin’s risk management framework and quantitative models; (11) Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; (12) the impact of labor pressures; (13) changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; (14) changes in management personnel; (15) Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; (16) increasing costs as Origin grows deposits; (17) operational risks associated with Origin’s business; (18) significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; (19) increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; (20) compliance with governmental and regulatory requirements and changes in laws, rules, regulations, interpretations or policies relating to financial institutions; (21) periodic changes to the extensive body of accounting rules and best practices; (22) further government intervention in the U.S. financial system; (23) a deterioration of the credit rating for U.S. long-term sovereign debt; (24) Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; (25) natural disasters and other adverse weather events, pandemics, acts of terrorism, war, and other matters beyond Origin’s control; (26) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (27) fraud or misconduct by internal or external actors (including Origin employees); (28) cybersecurity threats or security breaches and the cost of defending against them; (29) Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and (30) potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

    This press release contains projected financial information with respect to Origin, including with respect to certain goals and strategic initiatives of Origin and the anticipated benefits thereof. This projected financial information constitutes forward-looking information and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to significant business, economic (including interest rate), competitive, and other risks and uncertainties. Actual results may differ materially from the results contemplated by the projected financial information contained herein and the inclusion of such projected financial information in this release should not be regarded as a representation by any person that such actions will be taken or accomplished or that the results reflected in such projected financial information with respect thereto will be achieved.

    Contact:

    Investor Relations
    Chris Reigelman
    318-497-3177
    chris@origin.bank

    Media Contact
    Ryan Kilpatrick
    318-232-7472
    rkilpatrick@origin.bank

    Origin Bancorp, Inc.
    Selected Quarterly Financial Data
    (Unaudited)
     
      Three Months Ended
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Income statement and share amounts (Dollars in thousands, except per share amounts)
    Net interest income $ 78,459     $ 78,349     $ 74,804     $ 73,890     $ 73,323  
    Provision (benefit) for credit losses   3,444       (5,398 )     4,603       5,231       3,012  
    Noninterest income   15,602       (330 )     15,989       22,465       17,255  
    Noninterest expense   62,068       65,422       62,521       64,388       58,707  
    Income before income tax expense   28,549       17,995       23,669       26,736       28,859  
    Income tax expense   6,138       3,725       5,068       5,747       6,227  
    Net income $ 22,411     $ 14,270     $ 18,601     $ 20,989     $ 22,632  
    PTPP earnings(1) $ 31,993     $ 12,597     $ 28,272     $ 31,967     $ 31,871  
    Basic earnings per common share   0.72       0.46       0.60       0.68       0.73  
    Diluted earnings per common share   0.71       0.46       0.60       0.67       0.73  
    Dividends declared per common share   0.15       0.15       0.15       0.15       0.15  
    Weighted average common shares outstanding – basic   31,205,752       31,155,486       31,130,293       31,042,527       30,981,333  
    Weighted average common shares outstanding – diluted   31,412,010       31,308,805       31,239,877       31,131,829       31,078,910  
                       
    Balance sheet data                  
    Total LHFI $ 7,585,526     $ 7,573,713     $ 7,956,790     $ 7,959,171     $ 7,900,027  
    Total LHFI excluding MW LOC   7,181,395       7,224,632       7,461,602       7,452,666       7,499,032  
    Total assets   9,750,372       9,678,702       9,965,986       9,947,182       9,892,379  
    Total deposits   8,338,412       8,223,120       8,486,568       8,510,842       8,505,464  
    Total stockholders’ equity   1,180,177       1,145,245       1,145,673       1,095,894       1,078,853  
                       
    Performance metrics and capital ratios                  
    Yield on LHFI   6.33 %     6.47 %     6.67 %     6.58 %     6.58 %
    Yield on interest-earnings assets   5.79       5.91       6.09       6.04       5.99  
    Cost of interest-bearing deposits   3.23       3.61       4.01       3.95       3.85  
    Cost of total deposits   2.52       2.79       3.14       3.08       2.99  
    NIM – fully tax equivalent (“FTE”)   3.44       3.33       3.18       3.17       3.19  
    Return on average assets (annualized) (“ROAA”)   0.93       0.57       0.74       0.84       0.92  
    PTPP ROAA (annualized)(1)   1.32       0.50       1.13       1.28       1.30  
    Return on average stockholders’ equity (annualized) (“ROAE”)   7.79       4.94       6.57       7.79       8.57  
    Book value per common share $ 37.77     $ 36.71     $ 36.76     $ 35.23     $ 34.79  
    Tangible book value per common share(1)   32.43       31.38       31.37       29.77       29.24  
    Adjusted tangible book value per common share(1)   35.33       34.78       34.39       33.86       33.27  
    Return on average tangible common equity (annualized) (“ROATCE”)(1)   9.09 %     5.78 %     7.74 %     9.25 %     10.24 %
    Efficiency ratio(2)   65.99       83.85       68.86       66.82       64.81  
    Core efficiency ratio(1)   65.33       82.79       67.48       65.55       65.24  
    Common equity tier 1 to risk-weighted assets(3)   13.57       13.32       12.46       12.15       11.97  
    Tier 1 capital to risk-weighted assets(3)   13.76       13.52       12.64       12.33       12.15  
    Total capital to risk-weighted assets(3)   15.81       16.44       15.45       15.16       14.98  
    Tier 1 leverage ratio(3)   11.47       11.08       10.93       10.70       10.66  
                                           

    ___________________________

    (1) PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
    (2) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (3) March 31, 2025, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
       
    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income
    (Unaudited)
     
      Three Months Ended
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Interest and dividend income (Dollars in thousands, except per share amounts)
    Interest and fees on loans $ 117,075     $ 127,021     $ 133,195   $ 129,879   $ 127,186  
    Investment securities-taxable   8,076       6,651       6,536     6,606     6,849  
    Investment securities-nontaxable   968       964       905     893     910  
    Interest and dividend income on assets held in other financial institutions   6,424       5,197       3,621     4,416     3,756  
    Total interest and dividend income   132,543       139,833       144,257     141,794     138,701  
    Interest expense                  
    Interest-bearing deposits   51,779       59,511       67,051     65,469     62,842  
    FHLB advances and other borrowings   96       88       482     514     518  
    Subordinated indebtedness   2,209       1,885       1,920     1,921     2,018  
    Total interest expense   54,084       61,484       69,453     67,904     65,378  
    Net interest income   78,459       78,349       74,804     73,890     73,323  
    Provision (benefit) for credit losses   3,444       (5,398 )     4,603     5,231     3,012  
    Net interest income after provision for credit losses   75,015       83,747       70,201     68,659     70,311  
    Noninterest income                  
    Insurance commission and fee income   7,927       5,441       6,928     6,665     7,725  
    Service charges and fees   4,716       4,801       4,664     4,862     4,688  
    Other fee income   2,301       2,152       2,114     2,404     2,247  
    Mortgage banking revenue   915       1,151       1,153     1,878     2,398  
    Swap fee income   533       116       106     44     57  
    (Loss) gain on sales of securities, net   —       (14,617 )     221     —     (403 )
    Limited partnership investment (loss) income   (1,692 )     (62 )     375     68     138  
    Change in fair value of equity investments   —       —       —     5,188     —  
    Other income   902       688       428     1,356     405  
    Total noninterest income (loss)   15,602       (330 )     15,989     22,465     17,255  
    Noninterest expense                  
    Salaries and employee benefits   37,731       36,405       38,491     38,109     35,818  
    Occupancy and equipment, net   8,544       7,913       6,298     7,009     6,645  
    Data processing   2,957       3,414       3,470     3,468     3,145  
    Office and operations   2,972       2,883       2,984     3,072     2,502  
    Intangible asset amortization   1,761       1,800       1,905     2,137     2,137  
    Regulatory assessments   1,392       1,535       1,791     1,842     1,734  
    Advertising and marketing   1,133       1,929       1,449     1,328     1,444  
    Professional services   1,250       2,064       2,012     1,303     1,231  
    Electronic banking   1,354       1,377       1,308     1,238     1,239  
    Loan-related expenses   599       431       751     1,077     905  
    Franchise tax expense   675       884       721     815     477  
    Other expenses   1,700       4,787       1,341     2,990     1,430  
    Total noninterest expense   62,068       65,422       62,521     64,388     58,707  
    Income before income tax expense   28,549       17,995       23,669     26,736     28,859  
    Income tax expense   6,138       3,725       5,068     5,747     6,227  
    Net income $ 22,411     $ 14,270     $ 18,601   $ 20,989   $ 22,632  
                                       
    Origin Bancorp, Inc.
    Consolidated Balance Sheets
    (Unaudited)
                       
    (Dollars in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Assets                  
    Cash and due from banks $ 112,888     $ 132,991     $ 159,337     $ 137,615     $ 98,147  
    Interest-bearing deposits in banks   373,314       337,258       161,854       150,435       193,365  
    Total cash and cash equivalents   486,202       470,249       321,191       288,050       291,512  
    Securities:                  
    AFS   1,161,368       1,102,528       1,160,965       1,160,048       1,190,922  
    Held to maturity, net of allowance for credit losses   11,094       11,095       11,096       11,616       11,651  
    Securities carried at fair value through income   6,512       6,512       6,533       6,499       6,755  
    Total securities   1,178,974       1,120,135       1,178,594       1,178,163       1,209,328  
    Non-marketable equity securities held in other financial institutions   71,754       71,643       67,068       64,010       53,870  
    Loans held for sale   10,191       10,494       7,631       18,291       14,975  
    LHFI   7,585,526       7,573,713       7,956,790       7,959,171       7,900,027  
    Less: ALCL   92,011       91,060       95,989       100,865       98,375  
    LHFI, net of ALCL   7,493,515       7,482,653       7,860,801       7,858,306       7,801,652  
    Premises and equipment, net   123,847       126,620       126,751       121,562       120,931  
    Cash surrender value of bank-owned life insurance   41,021       40,840       40,602       40,365       40,134  
    Goodwill   128,679       128,679       128,679       128,679       128,679  
    Other intangible assets, net   38,212       37,473       39,272       41,177       43,314  
    Accrued interest receivable and other assets   177,977       189,916       195,397       208,579       187,984  
    Total assets $ 9,750,372     $ 9,678,702     $ 9,965,986     $ 9,947,182     $ 9,892,379  
    Liabilities and Stockholders’ Equity                  
    Noninterest-bearing deposits $ 1,888,808     $ 1,900,651     $ 1,893,767     $ 1,866,622     $ 1,887,066  
    Interest-bearing deposits excluding brokered interest-bearing deposits, if any   5,536,636       5,301,243       5,137,940       4,984,817       4,990,632  
    Time deposits   862,968       941,000       1,023,252       1,022,589       1,030,656  
    Brokered deposits   50,000       80,226       431,609       636,814       597,110  
    Total deposits   8,338,412       8,223,120       8,486,568       8,510,842       8,505,464  
    FHLB advances and other borrowings   12,488       12,460       30,446       40,737       13,158  
    Subordinated indebtedness   89,599       159,943       159,861       159,779       160,684  
    Accrued expenses and other liabilities   129,696       137,934       143,438       139,930       134,220  
    Total liabilities   8,570,195       8,533,457       8,820,313       8,851,288       8,813,526  
    Stockholders’ equity:                  
    Common stock   156,220       155,988       155,837       155,543       155,057  
    Additional paid-in capital   538,790       537,366       535,662       532,950       530,380  
    Retained earnings   575,578       557,920       548,419       534,585       518,325  
    Accumulated other comprehensive loss   (90,411 )     (106,029 )     (94,245 )     (127,184 )     (124,909 )
    Total stockholders’ equity   1,180,177       1,145,245       1,145,673       1,095,894       1,078,853  
      Total liabilities and stockholders’ equity $ 9,750,372     $ 9,678,702     $ 9,965,986     $ 9,947,182     $ 9,892,379  
                                           
    Origin Bancorp, Inc.
    Loan Data
    (Unaudited)
       
      At and For the Three Months Ended
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    LHFI (Dollars in thousands)
    Owner occupied commercial real estate $ 937,985     $ 975,947     $ 991,671     $ 959,850     $ 948,624  
    Non-owner occupied commercial real estate   1,445,864       1,501,484       1,533,093       1,563,152       1,472,164  
    Construction/land/land development   798,609       864,011       991,545       1,017,389       1,168,597  
    Residential real estate – single family   1,465,192       1,432,129       1,414,013       1,421,027       1,373,532  
    Multi-family real estate   489,765       425,460       434,317       398,202       359,765  
    Total real estate loans   5,137,415       5,199,031       5,364,639       5,359,620       5,322,682  
    Commercial and industrial   2,022,085       2,002,634       2,074,037       2,070,947       2,154,151  
    MW LOC   404,131       349,081       495,188       506,505       400,995  
    Consumer   21,895       22,967       22,926       22,099       22,199  
    Total LHFI   7,585,526       7,573,713       7,956,790       7,959,171       7,900,027  
    Less: ALCL   92,011       91,060       95,989       100,865       98,375  
    LHFI, net $ 7,493,515     $ 7,482,653     $ 7,860,801     $ 7,858,306     $ 7,801,652  
                       
    Nonperforming assets(1)                  
    Nonperforming LHFI                  
    Commercial real estate $ 5,465     $ 4,974     $ 2,776     $ 2,196     $ 4,474  
    Construction/land/land development   17,694       18,505       26,291       26,336       383  
    Residential real estate(2)   40,749       36,221       14,313       13,493       14,918  
    Commercial and industrial   17,325       15,120       20,486       33,608       20,560  
    Consumer   135       182       407       179       104  
    Total nonperforming LHFI   81,368       75,002       64,273       75,812       40,439  
    Other real estate owned/repossessed assets   1,990       3,635       6,043       6,827       3,935  
    Total nonperforming assets $ 83,358     $ 78,637     $ 70,316     $ 82,639     $ 44,374  
    Classified assets $ 129,666     $ 122,417     $ 113,529     $ 125,081     $ 88,152  
    Past due LHFI(3)   72,774       42,437       38,838       66,276       32,835  
                       
    Allowance for loan credit losses                  
    Balance at beginning of period $ 91,060     $ 95,989     $ 100,865     $ 98,375     $ 96,868  
    Provision (benefit) for loan credit losses   3,679       (5,489 )     4,644       5,436       4,089  
    Loans charged off   4,848       2,025       11,226       3,706       6,683  
    Loan recoveries   2,120       2,585       1,706       760       4,101  
    Net charge-offs (recoveries)   2,728       (560 )     9,520       2,946       2,582  
    Balance at end of period $ 92,011     $ 91,060     $ 95,989     $ 100,865     $ 98,375  
                       
    Credit quality ratios                  
    Total nonperforming assets to total assets   0.85 %     0.81 %     0.71 %     0.83 %     0.45 %
    Nonperforming LHFI to LHFI   1.07       0.99       0.81       0.95       0.51  
    Past due LHFI to LHFI   0.96       0.56       0.49       0.83       0.42  
    ALCL to nonperforming LHFI   113.08       121.41       149.35       133.05       243.27  
    ALCL to total LHFI   1.21       1.20       1.21       1.27       1.25  
    ALCL to total LHFI, adjusted(4)   1.28       1.25       1.28       1.34       1.30  
    Net charge-offs (recoveries) to total average LHFI (annualized)   0.15       (0.03 )     0.48       0.15       0.13  
                                           

    ___________________________

    (1) Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale, if any.
    (2) Includes multi-family real estate.
    (3) Past due LHFI are defined as loans 30 days or more past due.
    (4) The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       
    Origin Bancorp, Inc.
    Average Balances and Yields/Rates
    (Unaudited)
       
      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
      Average Balance   Yield/Rate   Average Balance   Yield/Rate   Average Balance   Yield/Rate
                           
    Assets (Dollars in thousands)
    Commercial real estate $ 2,448,099   5.82 %   $ 2,499,279   5.89 %   $ 2,438,476   5.84 %
    Construction/land/land development   821,754   6.87       936,134   6.92       1,130,355   7.25  
    Residential real estate(1)   1,909,922   5.53       1,847,399   5.50       1,739,105   5.40  
    Commercial and industrial (“C&I”)   2,004,034   7.37       2,028,290   7.68       2,121,502   7.89  
    MW LOC   289,521   7.07       459,716   7.26       306,248   7.59  
    Consumer   22,709   7.45       23,393   7.64       23,319   8.07  
    LHFI   7,496,039   6.33       7,794,211   6.47       7,759,005   6.58  
    Loans held for sale   8,590   6.18       10,981   6.81       12,906   5.86  
    Loans receivable   7,504,629   6.33       7,805,192   6.47       7,771,911   6.58  
    Investment securities-taxable   1,021,904   3.21       1,002,216   2.64       1,095,480   2.51  
    Investment securities-nontaxable   140,875   2.79       149,307   2.57       148,077   2.47  
    Non-marketable equity securities held in other financial institutions   71,669   2.35       69,070   2.78       58,455   3.77  
    Interest-earning balances due from banks   543,821   4.48       394,790   4.75       240,432   5.37  
    Total interest-earning assets   9,282,898   5.79       9,420,575   5.91       9,314,355   5.99  
    Noninterest-earning assets   525,317         557,968         546,881    
    Total assets $ 9,808,215       $ 9,978,543       $ 9,861,236    
                           
    Liabilities and Stockholders’ Equity                    
    Liabilities                      
    Interest-bearing liabilities                      
    Savings and interest-bearing transaction accounts $ 5,538,710   3.14 %   $ 5,341,028   3.48 %   $ 5,009,117   3.69 %
    Time deposits   972,176   3.69       1,213,565   4.20       1,563,992   4.35  
    Total interest-bearing deposits   6,510,886   3.23       6,554,593   3.61       6,573,109   3.85  
    FHLB advances and other borrowings   14,148   2.75       12,698   2.76       42,284   4.92  
    Subordinated indebtedness   124,133   7.22       159,910   4.69       165,252   4.91  
    Total interest-bearing liabilities   6,649,167   3.30       6,727,201   3.64       6,780,645   3.88  
    Noninterest-bearing liabilities                      
    Noninterest-bearing deposits   1,837,365         1,940,689         1,866,496    
    Other liabilities   154,934         161,425         151,390    
    Total liabilities   8,641,466         8,829,315         8,798,531    
    Stockholders’ Equity   1,166,749         1,149,228         1,062,705    
    Total liabilities and stockholders’ equity $ 9,808,215       $ 9,978,543       $ 9,861,236    
    Net interest spread     2.49 %       2.27 %       2.11 %
    NIM     3.43         3.31         3.17  
    NIM-FTE(2)     3.44         3.33         3.19  
                                 

    ___________________________

    (1) Includes multi-family real estate.
    (2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
       
    Origin Bancorp, Inc.
    Notable Items
    (Unaudited)
       
      At and For the Three Months Ended
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
      $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)
                                           
      (Dollars in thousands, except per share amounts)
    Notable interest income items:                                    
    Interest income reversal on relationships impacted by questioned banker activity $ —     $ —     $ —     $ —     $ —     $ —     $ (1,206 )   $ (0.03 )   $ —     $ —  
    Notable interest expense items:                                    
    OID amortization – subordinated debenture redemption   (681 )     (0.02 )     —       —       —       —       —       —       —       —  
    Notable provision expense items:                                    
    Provision release (expense) related to questioned banker activity   —       —       3,212       0.08       —       —       (3,212 )     (0.08 )     —       —  
    Provision release (expense) on relationships impacted by questioned banker activity   375       0.01       —       —       —       —       (4,131 )     (0.11 )     —       —  
    Notable noninterest income items(2):                                
    MSR gain (impairment)   —       —       —       —       —       —       —       —       410       0.01  
    (Loss) gain on sales of securities, net   —       —       (14,617 )     (0.37 )     221       0.01       —       —       (403 )     (0.01 )
    Gain on sub-debt repurchase   —       —       —       —       —       —       81       —       —       —  
    Positive valuation adjustment on non-marketable equity securities   —       —       —       —       —       —       5,188       0.13       —       —  
    Net (loss) gain on OREO properties(2)   (212 )     (0.01 )     198       —       —       —       800       0.02       —       —  
    BOLI payout   208       0.01       —       —       —       —       —       —       —       —  
    Notable noninterest expense items:                                
    Operating expense related to questioned banker activity   (543 )     (0.01 )     (4,069 )     (0.10 )     (848 )     (0.02 )     (1,452 )     (0.04 )     —       —  
    Operating expense related to strategic Optimize Origin initiatives   (1,615 )     (0.04 )     (1,121 )     (0.03 )     —       —       —       —       —       —  
    Employee Retention Credit   213       0.01       1,651       0.04       —       —       —       —       —       —  
    Total notable items $ (2,255 )     (0.06 )   $ (14,746 )     (0.37 )   $ (627 )     (0.02 )   $ (3,932 )     (0.10 )   $ 7       —  
                                                                                   

    ___________________________

    (1) The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
    (2) The $212,000 net (loss) gain on OREO properties for the quarter ended March 31, 2025, includes a $444,000 expected insurance settlement recovery that was included in noninterest income on the face of the income statement and a $148,000 repair cost that was included in noninterest expense.
       
    Origin Bancorp, Inc.
    Non-GAAP Financial Measures
    (Unaudited)
     
      At and For the Three Months Ended
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
      (Dollars in thousands, except per share amounts)
    Calculation of PTPP earnings:                  
    Net income $ 22,411     $ 14,270     $ 18,601     $ 20,989     $ 22,632  
    Provision (benefit) for credit losses   3,444       (5,398 )     4,603       5,231       3,012  
    Income tax expense   6,138       3,725       5,068       5,747       6,227  
    PTPP earnings (non-GAAP) $ 31,993     $ 12,597     $ 28,272     $ 31,967     $ 31,871  
                       
    Calculation of PTPP ROAA:                  
    PTPP earnings $ 31,993     $ 12,597     $ 28,272     $ 31,967     $ 31,871  
    Divided by number of days in the quarter   90       92       92       91       91  
    Multiplied by the number of days in the year   365       366       366       366       366  
    PTPP earnings, annualized $ 129,749     $ 50,114     $ 112,473     $ 128,571     $ 128,184  
                       
    Divided by total average assets $ 9,808,215     $ 9,978,543     $ 9,985,836     $ 10,008,225     $ 9,861,236  
    ROAA (annualized) (GAAP)   0.93 %     0.57 %     0.74 %     0.84 %     0.92 %
    PTPP ROAA (annualized) (non-GAAP)   1.32       0.50       1.13       1.28       1.30  
                       
    Calculation of tangible book value per common share and adjusted tangible book value per common share:
    Total common stockholders’ equity $ 1,180,177     $ 1,145,245     $ 1,145,673     $ 1,095,894     $ 1,078,853  
    Goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Other intangible assets, net   (38,212 )     (37,473 )     (39,272 )     (41,177 )     (43,314 )
    Tangible common equity   1,013,286       979,093       977,722       926,038       906,860  
    Accumulated other comprehensive loss   90,411       106,029       94,245       127,184       124,909  
    Adjusted tangible common equity   1,103,697       1,085,122       1,071,967       1,053,222       1,031,769  
    Divided by common shares outstanding at the end of the period   31,244,006       31,197,574       31,167,410       31,108,667       31,011,304  
    Book value per common share (GAAP) $ 37.77     $ 36.71     $ 36.76     $ 35.23     $ 34.79  
    Tangible book value per common share (non-GAAP)   32.43       31.38       31.37       29.77       29.24  
    Adjusted tangible book value per common share (non-GAAP)   35.33       34.78       34.39       33.86       33.27  
                       
    Calculation of ROATCE:                
    Net income $ 22,411     $ 14,270     $ 18,601     $ 20,989     $ 22,632  
    Divided by number of days in the quarter   90       92       92       91       91  
    Multiplied by number of days in the year   365       366       366       366       366  
    Annualized net income $ 90,889     $ 56,770     $ 74,000     $ 84,417     $ 91,025  
                       
    Total average common stockholders’ equity $ 1,166,749     $ 1,149,228     $ 1,125,697     $ 1,084,269     $ 1,062,705  
    Average goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Average other intangible assets, net   (38,254 )     (38,646 )     (40,487 )     (42,563 )     (44,700 )
    Average tangible common equity   999,816       981,903       956,531       913,027       889,326  
                       
    ROATCE (non-GAAP)   9.09 %     5.78 %     7.74 %     9.25 %     10.24 %
    Calculation of core efficiency ratio:                  
    Total noninterest expense $ 62,068     $ 65,422     $ 62,521     $ 64,388     $ 58,707  
    Insurance and mortgage noninterest expense   (8,230 )     (8,497 )     (8,448 )     (8,402 )     (8,045 )
    Adjusted total noninterest expense   53,838       56,925       54,073       55,986       50,662  
                       
    Net interest income $ 78,459     $ 78,349     $ 74,804     $ 73,890     $ 73,323  
    Insurance and mortgage net interest income   (2,815 )     (2,666 )     (2,578 )     (2,407 )     (2,795 )
    Total noninterest income   15,602       (330 )     15,989       22,465       17,255  
    Insurance and mortgage noninterest income   (8,842 )     (6,592 )     (8,081 )     (8,543 )     (10,123 )
    Adjusted total revenue   82,404       68,761       80,134       85,405       77,660  
                       
    Efficiency ratio (GAAP)   65.99 %     83.85 %     68.86 %     66.82 %     64.81 %
    Core efficiency ratio (non-GAAP)   65.33       82.79       67.48       65.55       65.24  

    The MIL Network –

    April 24, 2025

  • MIL-OSI Economics: Hilco offers Lakeland a lifeline, but it must adapt, says GlobalData

    Source: GlobalData

    Hilco offers Lakeland a lifeline, but it must adapt, says GlobalData

    Posted in Retail

    Following the news of Lakeland being close to agreeing a Hilco-financed management buyout;

    Oliver Maddison, Retail Analyst at GlobalData, a leading data and analytics company, offers his view:

    “Lakeland’s inability to adapt has meant that it has struggled to compete for some time; it took a global pandemic for it to start taking online seriously, meaning its website offers less functionality than its rivals, which combined with its low store count of just 58, has made it inconvenient to shop at. This left it vulnerable to competition from the likes of Dunelm, which has over 200 stores and online penetration of 41%; rival kitchen specialist ProCook, which grew its Q4 online sales by 23.4%; and the grocers, which offer readily available ranges of low-cost cookware.

    “Its lack of agility meant that it was unable to adapt its offering to changing circumstances. Lakeland made hay out of its ‘Smart Save’ campaign, promoting energy-saving electrical items like air fryers and heated airers when energy prices were high, but failed to shift the campaign’s focus to other more relevant areas, such as its cooking and baking range, when energy prices normalised but inflation remained elevated.”

    Maddison concludes: “As a proportion of its revenues, Lakeland’s operating costs (52.0%) are much higher than rivals like Dunelm (38.6%), even though gross margins are similar (50.8% vs 52.8% respectively), exposing Lakeland’s operational inefficiencies. Tellingly, the only years between 2018 and 2023 that Lakeland made a profit were during 2020 and 2021, when its operating costs were effectively subsidised through policies such as the furlough scheme. Especially with increases to NICs and the minimum wage, cost control will be at the top of the agenda for Lakeland’s new ownership.”

    MIL OSI Economics –

    April 24, 2025

  • MIL-OSI Europe: REPORT on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VII – Committee of the Regions – A10-0046/2025

    Source: European Parliament

    2. MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

    with observations forming an integral part of the decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VII – Committee of the Regions

    (2024/2026(DEC))

    The European Parliament,

    – having regard to its decision on discharge in respect of the implementation of the general budget of the European Union for the financial year 2023, Section VII – Committee of the Regions,

    – having regard to Rule 102 of and Annex V to its Rules of Procedure,

    – having regard to the report of the Committee on Budgetary Control (A10-0046/2025),

    A. whereas in the context of the discharge procedure, the discharge authority wishes to stress the particular importance of further strengthening the democratic legitimacy of the Union institutions by improving transparency and accountability, and implementing the concept of performance-based budgeting and good governance of human resources;

    B. whereas the Committee of the Regions (the ‘Committee’) is a political assembly of 329 members elected in the regions, cities, villages and municipalities of the 27 Member States of the Union, operating as a consultative body for the Union institutions, with the mission of contributing to the Union policy shaping and decision making process from the point of view of the local and regional authorities, and at the same time contributing to make the Union more effective and closer to the citizens;

    C. whereas the consultation of the Committee by the Commission or the Council is mandatory in certain cases, while the Committee may also adopt opinions on its own initiative and enjoys a wide area for referral, as set out in the Treaties, allowing it to be consulted by Parliament;

    D. whereas the Committee’s activities are defined on the basis of its overall political strategy as set out in its resolution of 2 July 2020 on its priorities for 2020-2025[7], and whereas the Committee adopted three political priorities for the 2020-2025 mandate, accompanied by three communication campaigns: Bringing Europe closer to people, Building resilient regional and local communities, and Promoting cohesion as a fundamental value of the EU;

    E. whereas the local and regional administrations account for one third of public spending, half of public investment and one fourth of tax revenues and, in many Member States, hold competencies in key areas such as education, economic development and cohesion, environment, social protection, health and services of general interest, hence the coordination of local, regional, national and European levels increases the legitimacy of the legislation, improves ownership and pursues more effectively the benefit of citizens;

    F. whereas the Committee pursues its political goal to strengthen its involvement in the entire Union political and legislative cycle while making more tangible the connection with Union citizens using the Committee’s members as powerful multipliers in their communities and in their national associations of local and regional authorities;

    G. whereas the Committee identified eleven key priority areas to make its action more strategic and impactful in 2023: (1) Follow-up to the Conference on the Future of Europe, Active Subsidiarity and Better Regulation; (2) Ukraine and Enlargement; (3) Energy and climate crisis; (4) Environment; (5) Cohesion Policy – Ramping up Cohesion policy implementation and shaping its future for the post-2027 period; (6) Multi-annual Financial Framework; (7) Economic governance for a fair and sustainable Europe; (8) European Year of Skills 2023; (9) Partnership for Regional Innovation and the promotion of territorial missions; (10) Civil protection; (11) Food security;

    H. whereas Regulation (EU) 2021/1060[8], governing Union cohesion policy and funding between 2021 and 2027, that entered into force in July 2021, encompasses references to the partnership and multilevel governance principle, supported by the Committee and Parliament and entailing the involvement of regions and their local and regional authorities; strongly supports the strengthening of Union investments linked to regional and local resilience in the next Multiannual Financial Framework (MFF);

    I. whereas the over 400 national and regional programmes in place for the delivery of Union cohesion policy in the 2021-2027 programming period will make available around EUR 380 billion, under different funds, to tackle the economic, social and environmental challenges that Union regions, cities, villages and municipalities are facing;

    J. whereas, on 19 February 2021, Regulation (EU) 2021/241[9], establishing the Union’s Recovery and Resilience Facility, entered into force, providing the legal basis for distributing funds and loans of up to EUR 672,5 billion (in 2018 prices) to the Member States between 2021 and 2026 and also aiming to support economic, social and territorial cohesion and to address disparities between the regions of the Union;

    K. whereas, as a Union institution within the meaning of the Financial Regulation, the Committee is required to adopt its own annual accounts, prepared in accordance with the accounting rules adopted by the Commission’s accounting officer (European Union Accounting Rules) and based on the International Public Sector Accounting Standards, which are ultimately consolidated into those of the Union;

    1. Notes that the budget of the Committee falls under MFF Heading 7 ‘European public administration’ (‘Heading 7’), which amounted to a total of EUR 12,3 billion, i.e., 6,4 % of Union budget spending, in 2023; notes that, in 2023, the budget of the Committee represented 0,95 % of MFF Heading 7 appropriations;

    2. Notes that the Court of Auditors (the ‘Court’), in its annual report (the ‘Court’s report’) for the financial year 2023, examined a sample of 70 transactions under Heading 7, of which 21 (30 %) contained errors; further notes that for five of those errors, which were quantified by the Court, the Court estimated a level of error below the materiality threshold;

    3. Notes from the Court’s report its observation that administrative expenditure comprises expenditure on human resources including pensions, which in 2023 accounted for about 70 % of the total administrative expenditure, and expenditure on buildings, equipment, energy, communications and information technology; welcomes the Court’s renewed opinion that, overall, administrative spending is low risk;

    4. Notes with regret from the Court’s report its opinion regarding a transaction made by the Committee in 2023, whereby the 10-year duration of a building maintenance contract was not sufficiently justified;

    Budgetary and financial management

    5. Notes from the Committee’s annual activity report for 2023  that the final adopted budget of the Committee was EUR 116 675 392 in 2023, including the Amending Budget 4/2023 (salary and energy related), representing an increase of EUR 6 698 534 (i.e., +6,10 %) compared to 2022; notes with satisfaction that the rate of the Committee’s budget implementation of current year commitment appropriations increased from 99,20 % in 2022 to 99,9 % in 2023, and the current year payment appropriations execution rate increased from 88 % in 2022 to 91,20 % in 2023; welcomes further an increase in the execution rate of C8 appropriations from 81,60 % in 2022 to 85 % in 2023; considers that these high execution rates are on the one hand a sign of good budgetary and financial management by the Committee, on the account of strengthened budget execution monitoring, timely budget forecasting and reallocation of resources to address unforeseen events, but on the other hand could also be a sign that the Committee needs additional resources; calls on the Commission and the budgetary authority to take this into account in the framework of the budgetary procedure;

    6. Notes that in the course of 2023, the Committee implemented 31 transfers for a total of EUR 2,84 million, of which 25 internal transfers for a total of EUR 0,98 million and six external transfers for a total of EUR 1,86 million, of which approximately EUR 0,8 million transferred to budget lines covering contracts impacted by high inflation/indexation; notes that impact of Russia’s war of aggression against Ukraine continued to create budgetary pressure for the Committee in 2023; notes in this context that the Committee was most affected by the high inflation rate, directly or indirectly, in areas such as travel costs (missions), energy, rents and lease of buildings, maintenance contracts, construction projects and paper and offset plates;

    7. Notes an increase by approximately 20 % of payments made for the members of the Committee, from EUR 6 573 307 in 2022 to EUR 7 955 968 in 2023, with payments made for travel expenses (8 119 payments), travel allowances (4 449 payments), meeting allowances for in-person participation (7 845 payments) and remote participation (152 payments);

    8. Notes that the mission’s budget (current year appropriations) remained stable, with EUR 420 833 in 2023 (compared to EUR 419 657 in 2022) and execution rate of approximately 80 % in 2023 (similar to 2022); notes that, despite an increase in the average cost of accommodation and travel costs, the Committee’s missions budget remained stable due to a reduction of 13 % in the number of missions carried out in 2023 compared to 2022; welcomes that the allowance for the Committee’s Presidency (President and First Vice-President) for travel and meeting expenses, financed from the general budget for members’ expenses, decreased from EUR 71 810 to EUR 62 268, representing a 13 % reduction between 2022 and 2023; encourages the Committee to further rationalize and reduce expenditure in this area, ensuring optimal allocation of resources in line with the principles of sound financial management;

    9. Observes with concern an increase in the current year appropriations for interpreting services of approximately 19 %, from EUR 3,494 million in 2022 to EUR 4,167 million in 2022; asks the Committee to explain the reasons for that increase, given the fact that at the same time the Committee has reported savings in connection with the use of remote interpretation in 2023;

    10. Notes that until 23 July 2023, the flat-rate remote meeting allowance paid by the Committee to its members, their alternates, as well as to rapporteurs’ experts and speakers invited to attend remote or hybrid meetings was EUR 200; notes further that on that date, new rules on the matter entered into force setting the flat-rate remote meeting allowance at 50 % of the regular meeting allowance, with the latter being EUR 359 and the former EUR 179,50; notes in this context a significant decrease in the total amount paid for remote meeting allowances from EUR 1 742 000 in 2021 and EUR 489 600 in 2022 to EUR 32 632 in 2023, while the overall expenditure linked to budget line 1004 (‘Travel and subsistence allowances, attendance at meetings and associated expenditure’) has increased considerably from approximately EUR 6,6 million in 2022 to approximately EUR 8 million in 2023, mainly due to a strong return to in-person meetings in 2023 and the increase in the travel related prices in the aftermath of the Covid-19 pandemic;

    11. Expresses concern over the significant increase in travel and meeting allowances paid to Committee members, rising from EUR 6,6 million in 2022 to EUR 8 million in 2023; calls on the Committee to adopt a clear cost-efficiency strategy for travel expenditures, including greater use of remote participation and hybrid meetings to reduce unnecessary costs and emissions while maintaining political engagement;

    12. Regrets that the average time for payment increased from 17,87 days in 2022 to 21,88 days in 2023; understands nevertheless that that increase is the result of the fact that in 2023 the Committee processed and paid a record number of invoices, i.e., 5 723 compared to 4 260 in 2022; notes in this context that the share of commercial invoices received electronically by the Committee has increased from 68 % in 2022 to 76 % in 2023 and continued to increase in 2024;

    Internal management, performance and internal control

    13. Acknowledges that the Committee plays a fundamental role in contributing to the Union’s policy development and decision-making processes by representing the interests of local and regional authorities within the Union; notes that for 2023, as part of its annual operational plan, the reporting of the performance of the Committee was based on 25 objectives, the achievement of which was assessed through 80 quantitative indicators, whereas the targets of the majority of those indicators (approximately 75 %) was achieved with a level of 90 % or more;

    14. Recalls that the Committee contributes to the Union policy and decision making process from the perspective of the regional and local authorities within the Union and provides a framework to enhance cooperation between the local, regional, national and European levels and to bring Europe closer to its citizens; regrets that budget limitations have impaired the Committee’s ability to fully deliver on its objective of bringing citizens closer to the Union, limiting the Committee’s added value;

    15. Considering the important role of the Committee in increasing the democratic legitimacy of Union legislation by providing an active coordination of regional and local authorities, supports the Committee in its effort to provide more territorial impact assessments (TIA), also in line with the Conference on the Future of Europe final report and recommendations;

    16. Commends the Committee for its political achievements in its key priority areas in 2023; notes that the Committee pursues its mission through opinions, which refer to legislative proposals made by the Commission (referrals), own-initiative opinions, which call on the Union institutions to take action, and through resolutions, which highlight the Committee’s positions on specific topics; notes that, in 2023, the Committee adopted 53 opinions and 6 resolutions, a decrease from 55 opinions and 8 resolutions adopted in 2022 despite the increase in appropriations and staff; encourages the Committee to continue to work on the performance improvement as well as effectiveness improvement; welcomes the Committee’s efforts to introduce reformative and innovative solutions, streamline the administration and avoid overlapping roles with other bodies;

    17. Appreciates that in 2023 the Committee continued implementing measures to modernise its administration and enhance cost-effectiveness in the context of the ‘Going for IMPact’ programme; notes in this context the progress made with regard to digitalisation and workflow optimisation, the modernisation of the Committee’s planning and reporting instruments, the creation of a central meeting service, and the enhancement of cooperation with other institutions or bodies (e.g., the European Economic and Social Committee (‘EESC’), Commission, Parliament, Office for Infrastructure and Logistics), among others; commends the Committee for having implemented almost 90 % of the simplification projects launched in 2021, in the areas of administrative processes, written procedures and (internal) legal documents;

    18. Notes with satisfaction from the Committee’s replies to the questionnaire submitted by the Parliament’s Committee on Budgetary Control for the 2023 budgetary discharge (the ‘Questionnaire’) that, thanks to the ‘Going for IMPact’ programme, the Committee has managed in 2023 to align its objectives to the available resources which were under pressure as a result of the inflationary effects of the war in Ukraine; commends in particular the progress made by the Committee in implementing ‘Project Convergence’ (a SharePoint-based tool for planning, reporting, risk assessment, and business continuity) and the new business continuity policy;

    19. Acknowledges the impact of the Committee’s work, in particular its opinions, some which were reflected in resolutions, positions, proposals, reports, reviews, conclusions or trilogues of the Commission, Parliament or the Council in 2023; invites the Committee to continue on the path of providing useful and relevant input, such as data from the ground and analysis, to Union institutions and other beneficiaries of Union policies; welcomes the Committee’s strengthened involvement along the whole political and legislative cycle of the Union through cooperation agreements and action plans with the Commission, Parliament and the European Investment Bank; considers that members of the Committee and of the EESC should be invited to relevant parliamentary meetings on matters within their remit; notes that, in 2023, Committee members also met the Council and Permanent Representations and participated in the events organised by the Council’s Presidency, in order to ensure that the Committee’s positions are reflected in the Union’s legislation; congratulates the Committee for strengthening its involvement in legislative trilogues, notably by being granted access, for the first time, to trilogue documents in 2023;

    20. Calls on the Committee to ensure stronger involvement of regional and local governments in Union decision-making by creating structured consultation mechanisms with regional and local authorities, including parliaments, municipalities, and local civil society organizations before issuing opinions; urges the Committee to advocate for a mandatory consultation process on legislative matters that significantly impact regional development and cohesion policy;

    21. Notes with regard to its new internal control framework, that the Committee implemented a new methodology on ex post controls as of 2023, aiming to simplify and align the approach to the practice of the other Union institutions, with the ex post controls now being centralised instead of the prior decentralised practice; notes that, in 2023, ex post controls focused on the basic salary and the time worked, with 55 files having been verified, and that the statistical estimate of the error affecting the reference population was 0 %; notes further that in 2023 the Committee renewed its compliance and effectiveness exercise to assess the extent of the Committee’s compliance with certain internal control standards and the effectiveness of their implementation; commends the Committee for reporting an improvement in this matter compared to the results of the 2022 exercise; encourages the Committee to continue its efforts to further step up the level of compliance and the degree of effectiveness of the internal control measures in place; notes with satisfaction, as regards the new sensitive posts policy, that in 2023 the Committee ran a screening exercise to identify the level of risk of each post and, thus, the sensitivity level thereof, as well as the necessary measures to mitigate those risks;

    22. Notes that the Committee launched in 2023 two new audits: one on the compliance of various functions (e.g., risk management, planning, control system) with the relevant data protection legislation and another one on the performance of the IT organisation in Joint Services (the Committee and the EESC’s new joint Directorate for Innovation and IT); notes that for each of those audits: 11 recommendations were issued and seven recommendations were considered very important; notes further that following the audit on management of the vacant posts launched in 2022, 10 recommendations were issued, three of which were very important; calls on the Committee to implement all pending recommendations as soon as possible and keep the discharge authority informed of progress in this matter;

    Human resources, equality and staff well-being

    23. Notes that, at the end of 2023, the Committee had a total of 559 members of staff (seconded national experts, interim, intra muros and trainees not included), compared to 533 in 2022; notes that 74 contract agents, compared to 56 contract agents in 2022 and 96 temporary agents, compared to 89 temporary agents in 2022, were employed by the Committee at the end of 2023, out of which 21 contract agents had an open-ended contract, 53 contract agents had a time-limited contract, 53 temporary agents were on permanent posts with time-limited contract, 50 temporary agents had an open-ended contract and 3 temporary agents held a temporary position (in two cases with an indefinite contract and, in the case of the Secretary-General, for a fixed duration of five years); notes, in addition, that the Committee employed 5 interim agents and 12 external members of staff working on-site, excluding external service providers in the fields of logistics and IT; hopes that the increase in staff has its reasonable justification; notes that in 2023 the occupation rate of the posts in the establishment plan was 98 % (an increase from 96 % in 2022) and the turnover rate was 6,6 % (a decrease from 10,80 % in 2022), respectively;

    24. Observes an increased reliance of the Committee on contract agents and temporary agents (representing up to 26 % of the Committee’s staff); notes from the Questionnaire that said reliance is due in particular to the absence of EPSO reserve lists for generalist administrator profiles since 2018; is worried that the Committee’s long-term stability and business continuity are threatened by the absence of attractiveness of the time-limited contracts offered; underlines the importance of permanent staff in maintaining skills, continuity and productive working environment; notes that the Committee organised an internal competition for generalists across five grades (AST/SC1, AST1, AST3, AD5, and AD7) in 2024; supports the Committee in its endeavours to respond to those challenges; asks the Committee to report to the discharge authority on such competitions organised in 2024;

    25. Notes that, at the end of 2023, the Committee employed 56,9 % women and 43,1 % men; regrets that the Committee has not yet achieved gender parity in leadership positions, but acknowledges the significant progress made under the Committee’s five-year diversity and inclusion strategy and action plan for 2022-2026, including a marked increase in the proportion of women in senior management positions from 37,5 % in 2022 to 44,4 % in 2023; recommends measures to enhance inclusivity in vacancy notices and to encourage greater female participation in senior and middle management roles, including through gender balance targets, balanced representation on selection boards, targeted training opportunities for female staff aspiring to managerial positions, and the promotion of more flexible working arrangements; encourages the Committee to continue its efforts for achieving gender balance and requires, in this context, Member States to nominate both a male and a female candidate for appointments for Committee membership to improve representation at all levels;

    26. Notes that, as a result of a pilot project on a hybrid working regime and a staff satisfaction survey launched in 2022, the Committee adopted on 1 January 2024 a decision which provides for a hybrid working regime and a personalised weekly working schedule for each staff, as well as the possibility to work from home for up to 60 % of staff’s working time (except for staff categories incompatible with telework) and work from outside the city of employment for up to 15 days per year; recognises that these measures aim to enhance work-life balance while maintaining operational efficiency and staff satisfaction;

    27. Notes with satisfaction that the Committee’s hybrid working regime has had a positive impact with regard to short-term sick leave, whereas: – the number of staff without sick leave increased from 71 (or 12 % of all staff) in 2018 to 211 (or 36 % of all staff) in 2023; – the number of staff on sick leave for less than seven days decreased from 257 (or 46 % of all staff) in 2018 to 201 (or 35 % of all staff) in 2023 and; – the number of staff on sick leave for a duration between 7,5 and 21 days decreased from 140 (or 25 % of all staff) in 2018 to 92 (or 16 % of all staff) in 2023; invites the Committee to monitor the impact of the new working regime and keep this topic in upcoming staff satisfaction surveys; notes with satisfaction that 90,25 % (82 % in the case of managers) of those that responded to the staff survey of December 2022 indicated their satisfaction with the flexible arrangements;

    28. Notes with concern that 18 cases of burnout were reported in the Committee in 2023, representing an increase from 16 cases in 2022; underlines the significant social and professional impact of burnout on staff well-being and performance; notes further that the Committee managed to reintegrate 16 members of staff in 2023 after long-term absence as a result of burnout, thanks to a personalised follow-up of long-term sickness leave; welcomes the preventive actions taken by the Committee to reduce psychosocial risks and burnout; appreciates in this regard the proactive approach of the medical service and the awareness-raising conferences, trainings and courses organised by the Committee; stresses, however, the need for further strengthening of efforts to address the root causes of burnout and to foster a healthier work environment;

    29. Notes that in 2023 the Committee continued to raise awareness of the measures put in place to prevent and combat harassment in the workplace, in accordance with its Decision of 26 April 2021 on protecting dignity at work, managing conflict and combatting harassment, notably through dedicated guidance, internal communication and the organisation of several information sessions for staff and managers; welcomes in particular the organisation of five training sessions on ‘Preventing psychological and sexual harassment’ and ‘Respect and Dignity for a high-performing team’ in 2023 and recommends continuity of this initiative; further notes with satisfaction that no new, ongoing, or closed cases concerning sexual harassment were reported during the year;

    30. Commends the Committee for its actions taken in 2023 in connection with the integration of persons with disabilities, such as making accessible the Committee’s buildings to persons with reduced mobility and ensuring that all job vacancies are accessible to candidates with disabilities;

    31. Notes that, in 2023, the Committee was employing staff representing all Union nationalities (and one staff member of Ukrainian nationality), with some of them being overrepresented (e.g., Belgium); welcomes the additional efforts of the Committee aiming at balancing the geographical distribution among staff by targeting a wider audience through the publication on its website and social media of calls for expression of interest for contract and temporary staff; regrets the persistent lack of geographical balance within the Committee’s staff, with certain nationalities remaining overrepresented in comparison to others; encourages the Committee to intensify its efforts to achieve a more balanced geographical distribution, particularly at the management level; asks the Committee to keep the discharge authority informed of the outcome of this type of action;

    32. Welcomes the participation of the Committee’s Traineeships Office, for the second consecutive time, in the session titled ‘Opportunities for young Roma’ in April 2023; commends the initiative to present the Committee’s traineeships scheme to young and motivated Roma and non-Roma participants, reflecting a strong commitment to promoting inclusivity, diversity, and equal opportunities; encourages the continuation and expansion of such initiatives to further engage underrepresented communities and foster a more inclusive European workforce;

    33. Welcomes the progress made with regard to gender balance in management, with an increase of the percentage of women both in middle management positions (from 29,7 % in 2022 to 32,5 % in 2023) and in senior management positions (from 37,5 % in 2022 to 44,4 % in 2023);

    Ethical framework and transparency

    34. Welcomes the work done by the Committees in 2023 to consolidate ethical rules and practices into a single ethical legal framework (Decision n⁰ 157/2023) covering disciplinary procedure, dignity at work, conflict management, combatting harassment, outside activities and whistleblowing among others; notes that that work culminated with a decision (n⁰ 157/2023) which was the outcome of comprehensive consultations with different stakeholders, as well as a follow-up to an internal survey on staff ethics awareness and the implementation of an internal audit recommendation on that topic; commends the Committee for continuing to offer training courses on ethics, integrity and respect and dignity at work to different groups of staff ranging from newcomers, managers and staff overall in 2023;

    35. Notes that the European Anti-Fraud Office (OLAF) processed two cases in 2023: one case on alleged outside gainful activities of a Committee member and another case on allegations of recidivism on unauthorised external activities by a staff member; notes that in the former case no OLAF investigation was opened on the grounds of lack of proportionality between the resources needed to conduct an investigation and the expected results, while the Committee considered that there were no conflicts of interest on the grounds that Committee members do not receive any remuneration from the Union, nor are they required to declare their professional activities, for which they may be paid for local or regional mandates that those members may have; notes with regard to the latter case that OLAF opened an investigation which was concluded with two recommendations, which the Committee implemented by opening a disciplinary procedure against the staff member concerned and by recovering gains in connection with that person’s unauthorised outside activities; recalls that the case closed in 2022 on allegations of financial wrongdoings, harassment and mismanagement in a Committee-EESC joint service, gave rise to a conflict-management exercise involving the persons concerned and to a five-point action plan; notes with satisfaction from the Committee’s follow-up report to Parliament’s discharge decision covering the Committee’s budget implementation year 2022 that that action plan was fully implemented by the end of 2023;

    36. Recalls that the Committee adopted Regulation n⁰ 6/2023 of 4 July 2023 laying down transparency measures that focus on office-holding members and rapporteurs; commends in this context the Committee for having formally joined the EU Transparency Register on 1 January 2024;

    37. Urges the Committee to enhance the detection and prevention of conflicts of interest by introducing a mandatory cooling-off period for outgoing members before they can engage in lobbying or advisory roles involving Union institutions; calls for the proactive publication of all recusal decisions taken by Committee members due to conflicts of interest;

    38. Welcomes the Committee’s renewed efforts in the area of detection and prevention of conflicts of interest in 2023; notes that thanks to its Decision n⁰157/2023, the Committee defined the concept of conflicts of interest and has put in place a mechanism to detect and prevent it whereby staff are required to declare whether they might have a conflict of interest (potential or possible), by filling in a form at various key moments of their career or professional activities; notes with satisfaction from the Questionnaire that the annual information regarding the occupation activities of former senior officials is published in a transparent way on the Committee’s website; notes that the Committee did not detect any situations of conflicts of interest which would have required follow-up by the administration in 2023;

    39. Notes that no cases of whistleblowing were reported to the Committee in 2023, except for information received from OLAF about a whistleblowing case against a staff member of the Committee, which was eventually dismissed by OLAF; notes that the Committee did not adopt any new measures concerning whistleblowing in 2023 and continued to rely on the measures in place since 2015 and to promote them through ethics training and awareness raising; supports regular mandatory ethic trainings both for staff as well as for management level;

    40. Notes that the Committee has had in place a range of anti-fraud measures and actions applicable to its members and its staff which are implemented by different services; observes that no anti-fraud strategy was in place in 2023 despite Parliament’s requests in previous discharge resolutions; notes with satisfaction, following Parliament’s recommendation, and as indicated in the Questionnaire, the Committee’s commitment to further strengthen the existing anti-fraud measures by adopting an anti-fraud strategy in 2025; encourages the Committee to facilitate regular and compulsory anti-fraud trainings as part of the strategy; asks the Committee to keep the discharge authority informed on this matter;

    Digitalisation, cybersecurity and data protection

    41. Notes that the combined IT budget of the Committee and the EESC was EUR 12,7 million in 2023, compared to EUR 11,712 million in 2022, i.e., an increase of 8,40 %, whereas EUR 350 000 of that budget was paid for cybersecurity in 2023;

    42. Welcomes the Committee’s new ‘Digital Strategy 2024-2026’ adopted at the end of 2023; commends in this context the Committee for its digitalisation progress made in 2023 in different areas such as the administrative processes (including staff selection), procurement and interpretation, among others; calls on the Committee to accelerate digital transformation efforts by ensuring the full implementation of electronic workflows, e-signatures, and digital case management tools by 2026, reducing paper-based processes in line with sustainability commitments, shifting towards a more paperless administration;

     

    43. Notes with satisfaction that 90 % of the projects for simplification through digitalisation under the ‘Going for impact’ initiative were fully implemented by the end of 2023; notes in addition that further efficiencies were tapped due to an IT project to define the best tool for the electronic management of form-based workflows with, as a result, many of the Committee’s processes having begun to be simplified and digitalised through Microsoft 365 tools; notes with satisfaction that the Committee uses procurement modules such as e-Tendering, e-Notices, e-Submission, MyWorkplace, as well as the qualified electronic signature, for the signature of contracts, introduced in 2023; welcomes the adoption by the Committee of internal guidelines on use of artificial intelligence laying the ground for possible future solutions and encourages introduction of regular mandatory trainings on safe use of artificial intelligence;

    44. Notes further that the European Data Protection Supervisor (‘EDPS’) did not conduct any investigation or enquiry into the processing of personal data by the Committee in 2023; notes that in 2023 the EDPS launched a general questionnaire on the designation and position of the data protection officer (DPO), which was answered by the Committee’s DPO;

    45. Notes that the Committee did not encounter any cyber-attacks in 2023, other than certain denial of service attacks against the Committee’s externally hosted website; notes from the Questionnaire of the Committee’s tools and strategies for real-time threat monitoring and identifying vulnerabilities in the Committee’s systems; commends the Committee for adhering to standards in matters related to cybersecurity-related risk assessments, as well as for having put in place a system based on incident response plans, recovery measures and lessons learned; notes with satisfaction that the Committee and the EESC adopted the NIST Cybersecurity Framework with focus, in 2023, on the principles: ‘protect’ and ‘detect’; encourages the Committee to raise the cybersecurity awareness of their members and staff, to carry out regular risk assessments of its IT infrastructure and to ensure regular audits and tests of its cyber defences;

    Buildings

    46. Notes that the Committee’s budget (current year appropriations) in 2023 was EUR 18,594 million (compared to EUR 18,930 million in 2022) with a payment execution rate of 93,70 % (compared to 82,60 % in 2022); notes with satisfaction that, as result of exchanging the B68 and TRE74 buildings for the VMA building in 2022, savings were achieved due to lower costs of renting the entire VMA in 2023;

    47. Notes that renovation works of the VMA (third to ninth floor) continued in 2023; notes further a low payment execution rate with regard to the C8 appropriations (carried over from 2022 to 2023), i.e., 18,90 %, used for the fitting-out of the VMA premises; understands the Committee’s explanation for that low rate whereas the contractor was not able to finish parts of the renovation works in the VMA buildings; reiterates its call to the Committee to provide the discharge authority with an update on the return on investment in relation to the smart technologies installed in the VMA;

    48. Welcomes the commitment of the Committee and the EESC to apply systematically the ‘design for all’ principle to their infrastructure, ensuring accessibility of their building by design; notes that the Committees took a range of different measures to ensure accessibility of their buildings to people with various kinds of disabilities (wheelchair users, blind and visually impaired people, deaf persons, elderly people with muscular or vascular problems);

    Environment and sustainability

    49. Notes that the Committee continued to implement a variety of green practices in 2023, such as the use of innovative energy-efficient building installations, the purchase of 100 % green electricity, the replacement of paperless workflows with digital signatures, the application of environmental criteria in all tender procedures (with customised green criteria for calls for tender above EUR 60 000), a focus on waste reduction and increase in the recycling rate, the implementation of measures for a more sustainable travel by staff, including financial contributions by the Committee to its staff’s public transport costs, the use of full remote interpretation for statutory meetings, and other energy saving measures; notes with satisfaction from the Questionnaire a reduction of carbon emissions linked to the Committee’s administration’s activities by 18 % compared to 2019;

    50. Notes with satisfaction from the questionnaire that, thanks to its energy saving measures, the Committee’s energy consumption was reduced by an estimated 3,4 % in 2023 compared to 2022, corresponding to a financial gain of EUR 64 240; congratulates the Committees for having exceeded the EMAS objectives for 2021-2025 in all areas (electricity, gas, water, waste, waste sorting, paper for office use, CO2 emissions);

    Interinstitutional cooperation

    51. Welcomes the budgetary and administrative savings achieved through interinstitutional cooperation, and in particular the close cooperation established at administrative level with the EESC, with which the Committee shares premises and joint services in the areas of translation, infrastructure, logistics and IT, with 470 members of staff and approximately EUR 60 million (excluding salary related expenditures) pooled together by both institutions in 2023; notes with satisfaction that the Committee further extended its cooperation with the EESC by exploiting additional synergies through joint medical services and joint central data protection register and processing operations based on the Joint Controllership Arrangement signed by the Committee and the EESC in 2023; reiterates its call on the Committee to pursue and expand that cooperation in other areas with a view to avoiding duplication and further rationalising the operating costs of services available in the premises shared by the Committee and the EESC; invites the Committee and the EESC to explore the possibility of setting up a single administration for their joint services, keeping separate directorates or units for the services dealing with matters related to their specific and independent mandates; encourages the Committee and the EESC to continue their efforts to develop further cooperation and synergies;

    52. Welcomes the Committee’s search for synergies by purchasing services from other institutions through service-level agreements and by participating in interinstitutional coordination bodies and interinstitutional procurement procedures; welcomes the efficiency gains, with regard to the communication for the 2024 European elections, reported by the Committee in the Questionnaire; notes that those gains were possible because the Committee signed with Parliament a Memorandum of Understanding in February 2024 and a new Cooperation Agreement (CP) in May 2024; notes further that the CP also covered cooperation at political and administrative level between the two institutions;

    53. Calls on the Committee to deepen its cooperation with Parliament and the Commission by establishing a structured annual dialogue between Committee representatives and Union legislators on key legislative files affecting regional development, climate policy, and social cohesion; urges the Committee to explore joint initiatives with Parliament’s Committees on Regional Development (REGI) and on the Environment, Climate and Food Safety (ENVI) to promote sustainable regional investments;

    54. Notes that the Committee cooperates with the Commission (for an annual fee) for the handling of HR matters and the use of various IT platforms for financial management and HR; notes further that the Committee holds its plenary sessions in the premises of Parliament and the Commission to compensate for the lack of capacity in its own conference rooms and buys interpreting services from those two institutions; 

    55. Welcomes the reviewing in 2023 of the Cooperation Agreement of the Committee with Parliament in view of its final signature in 2024; supports the cooperation of the Committee with several parliamentary committees, intergroups and directorates-general of Parliament and convene to considers vital that members of the Committee and EESC be regularly and systematically invited to relevant parliamentary exchanges, including committee meetings, on issues they are dealing with;

    Communication

    56. Notes that the Committee’s communication activities focus on relationship with press, organisation of events and digital content and social media with a total budget (current year appropriations) of approximately EUR 2,8 million in 2023; regrets a very low payment execution rate in those areas (ranging from 24,70 % to 48,20 %); notes nevertheless a high execution rate with regard to C8 appropriations (carried over from 2022 to 2023) of between 98 % and 100 %; calls on the Committee to take measures for improving its budgetary planning with regard to communication related budgetary items;

    57. Notes with satisfaction the Committee’s achievements in promoting Union policies and programs at local and regional level, improving the outreach of its consultative works and enhancing its visibility and impact; notes that the Committee’s communication strategy seeks to strengthen its institutional and political profile as the voice of the Union’s regions, cities, villages, and municipalities, while showcasing the essential contributions of its members in connecting Union policies with citizens and fostering engagement at the local and regional level; notes in this context the Committee’s communication actions in 2023 in areas such as: – cohesion (e.g., the ‘Promoting cohesion as a fundamental value of the Union’s campaign in the framework of the EURegionsWeek with more than 8 000 participants); – climate change (e.g., the ‘Building resilient and innovative local communities’ campaign); – democracy (e.g., the ‘A new chapter for EU democracy’ campaign with 1 400 registrations for participation at the 14th EuropCom conference); – rural development (the ‘2023 LEADER European Congress’ conference) in 2023; commends the Committee for the increase in the number of persons registered in the Network of Regional and Local EU Councillors (from 2 307 in 2022 to 3 000 in 2023) and the number of participants in the Young Elected Politicians programme (from 775 in 2022 to 836 in 2023);

    58. Welcomes the Committee’s efforts to increase outreach to regional governments and local communities, including the expansion of the Network of Regional and Local EU Councillors and the Young Elected Politicians program; calls on the Committee to allocate additional resources to support regional capacity-building programs that empower local governments to better implement Union policies;

    59. Notes the Committee’s success with regard to media outreach as shown by the overall metrics for 2023, such as: 13 210 media mentions, 129 % increase on web visitors and 11 % increase on followers; notes that in terms of digital engagement, the Committee fell short of achieving its target for 2023; notes that, at the end of 2023, the Committee had 200 000 followers on its social media channels, i.e., 15 % more than in 2022 of which 57 603 followers (+5 %) on X (ex-Twitter), 61 170 (+5 %) on Facebook, 68 613 (+31 %) on LinkedIn and 15 392 (+47 %) on Instagram;

    60. Notes with satisfaction from the Questionnaire the Committee’s initiatives to raise awareness about the specific measures of the Digital Services Act and the Digital Markets Acts, as well as cybersecurity and online safety; acknowledges the Committee’s role in advancing the Union’s path to a digital future; commends in this context the Committee for organising in 2023 the Digital Masterclass series, for both staff and external audiences.

    MIL OSI Europe News –

    April 24, 2025
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