Category: Residential Housing Market

MIL-OSI: Bogota Financial Corp. Reports Results for the Three and Twelve Months Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

TEANECK, N.J., Feb. 14, 2025 (GLOBE NEWSWIRE) — Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported a net loss for the three months ended December 31, 2024 of $930,000 or $0.07 per basic and diluted share, compared to a net loss of $1.2 million or $0.09 per basic and diluted share for the comparable prior year period. The Company reported a net loss for the year ended December 31, 2024 of $2.2 million or $0.17 per basic and diluted share compared to net income of $643,000, or $0.05 per basic and diluted share, for the prior year.

On April 24, 2024, the Company announced it had received regulatory approval to repurchase up to 237,090 shares of its common stock, which was approximately 5% of its then outstanding common stock (excluding shares held by Bogota Financial, MHC). The program does not have a scheduled expiration date and the Board of Directors may suspend or discontinue the program at any time. As of December 31, 2024, 188,047 shares have been repurchased under this program at a cost of $1.4 million.

Other Financial Highlights:

Total assets increased $32.2 million, or 3.4%, to $971.5 million at December 31, 2024 from $939.3 million at December 31, 2023, largely due to an increase in cash and cash equivalents and other assets, offset by a decrease in net loans and premises and equipment.
Cash and cash equivalents increased $27.3 million, or 109.5%, to $52.2 million at December 31, 2024 from $24.9 million at December 31, 2023, as increases in deposits and borrowings and loan and security maturities outpaced loan growth.
Securities decreased $1.2 million, or 0.9%, to $140.3 million at December 31, 2024 from $141.5 million at December 31, 2023.
Net loans decreased $3.0 million, or 0.4%, to $711.7 million at December 31, 2024 from $714.7 million at December 31, 2023 due to decreases in residential and construction loans, offset by an increase in commercial real estate loans.
Total deposits at December 31, 2024 were $642.2 million, increasing $16.9 million, or 2.7%, as compared to $625.3 million at December 31, 2023, primarily due to a $14.7 million increase in interest-bearing deposits and by a $2.1 million increase in non-interest bearing checking accounts. The average rate paid on deposits increased 31 basis points to 3.73% for 2024 from 3.42% for 2023 due to higher interest rates and an increase in NOW accounts, which increased $14.1 million, or 34.0%, to $55.4 million at December 31, 2024 from $41.3 million at December 31, 2023. The yield on such accounts also increased 63 basis points to 2.53% for 2024 from 1.90% for 2023.
Federal Home Loan Bank advances increased $4.5 million, or 2.7% to $172.2 million at December 31, 2024 from $167.7 million as of December 31, 2023.

The Bank completed a balance sheet restructuring consisting of two key transactions in the fourth quarter of 2024. The Bank entered into a sale-leaseback transaction whereby the Bank sold three of its branch offices resulting in a $9.0 million pre-tax gain. Subsequently, the Bank realized a pre-tax loss of $8.9 million on the sale of approximately $66.0 million in amortized cost ($57.1 million in market value) of securities with a weighted average life of approximately 5.5 years and a weighted average yield of 1.89%. The Bank reinvested $32.7 million of these proceeds into securities with a weighted average life of approximately 29.6 years and a weighted average yield of 5.60%. As of December 31, 2024 all securities were classified as available for sale and marked to market.

Kevin Pace, President and Chief Executive Officer, said, “We were able to accomplish a key piece of our strategic plan this quarter. The sale-leaseback transaction gave us the ability to dispose of underperforming legacy investments without deteriorating regulatory capital. We were able to utilize this strategy to strengthen our balance sheet and improve future earnings. Reinvesting those funds in securities and loans at current market rates, as well as paying down higher cost borrowings, will provide both short- and long-term benefits.

“Uncertainty around rates continues to be a necessary consideration when planning for growth. The repositioning will help with this process while improving our net interest margin. We were able to achieve modest asset and deposit growth for the year while remaining focused on prudent lending practices. The high cost of funds, in particular in our competitive market, continued to pressure earnings. As we continue with our current stock buyback program, we remain committed to adding shareholder value.”

Income Statement Analysis

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

Net income increased by $248,000, or 21.0%, to a net loss of $930,000 for the three months ended December 31, 2024 from a net loss of $1.2 million for the three months ended December 31, 2023. This increase was primarily due to an increase of $1.0 million in interest income, a $1.3 million decrease in non-interest expense and a decrease of $998,000 in income tax expense, offset by a $1.5 million increase in interest expense.

Interest income increased $1.0 million, or 10.7%, from $9.6 million for the three months ended December 31, 2023 to $10.6 million for the three months ended December 31, 2024 due to higher yields on interest-earning assets and higher average balances.

Interest income on cash and cash equivalents increased $46,000, or 31.7%, to $191,000 for the three months ended December 31, 2024 from $145,000 for the three months ended December 31, 2023 due to a $4.1 million increase in the average balance to $13.5 million for the three months ended December 31, 2024 from $9.4 million for the three months ended December 31, 2023, reflecting the increase of liquidity due to lower loan originations. Due to rate cuts enacted in the third and fourth quarter of the year, the yield on cash and cash equivalents decreased 47 basis points from 6.08% for the three months ended December 31, 2023 to 5.61% for the three months ended December 31, 2024.

Interest income on loans increased $299,000, or 3.6%, to $8.5 million for the three months ended December 31, 2024 compared to $8.2 million for the three months ended December 31, 2023 due primarily to 16 basis point increase in the average yield from 4.57% for the three months ended December 31, 2023 to 4.73% for the three months ended December 31, 2024 and by a $3.0 million increase in the average balance to $717.4 million for the three months ended December 31, 2024 from $714.4 million for the three months ended December 31, 2023.

Interest income on securities increased $612,000, or 58.8%, to $1.7 million for the three months ended December 31, 2024 from $1.0 million for the three months ended December 31, 2023 primarily due to a $42.1 million increase in the average balance to $175.3 million for the three months ended December 31, 2024 from $133.2 million for the three months ended December 31, 2023 and due to a 65 basis point increase in the average yield from 3.12% for the three months ended December 31, 2023 to 3.77% for the three months ended December 31, 2024.

Interest expense increased $1.5 million, or 22.1%, from $6.6 million for the three months ended December 31, 2023 to $8.1 million for the three months ended December 31, 2024 due to higher costs on interest-bearing liabilities and by a $58.9 million increase in the average balance of interest-bearing liabilities from $747.0 million for the three months ended December 31, 2023 to $805.9 million for the three months ended December 31, 2024. During the three months ended December 31, 2024, the use of the cash flow hedges reduced the interest expense by $280,000.

Interest expense on interest-bearing deposits increased $954,000, or 18.2%, to $6.2 million for the three months ended December 31, 2024 from $5.2 million for the three months ended December 31, 2023. The increase was due to a 61 basis point increase in the average cost of deposits to 4.02% for the three months ended December 31, 2024 from 3.41% for the three months ended December 31, 2023. The increase in the average cost of deposits was due to the higher interest rate environment. The average balances of certificates of deposit increased $4.7 million to $501.8 million for the three months ended December 31, 2024 from $497.1 million for the three months ended December 31, 2023 while NOW and money market accounts and savings accounts decreased $148,000 and $430,000 for the three months ended December 31, 2024, respectively, compared to the three months ended December 31, 2023.

Interest expense on Federal Home Loan Bank borrowings increased $513,000, or 37.1%, from $1.4 million for the three months ended December 31, 2023 to $1.9 million for the three months ended December 31, 2024. The increase was due to an increase in the average balance of borrowings of $54.8 million to $192.2 million for the three months ended December 31, 2024 from $137.4 million for the three months ended December 31, 2023, which was partially offset by a decrease in the average cost of 7 basis points to 3.92% for the three months ended December 31, 2024 from 3.99% for the three months ended December 31, 2023 as new borrowings in the second half of the year were at slightly lower rates. At December 31, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value.

Net interest income decreased $439,000, or 14.9%, to $2.5 million for the three months ended December 31, 2024 from $2.9 million for the three months ended December 31, 2023. The decrease reflected a 27 basis point decrease in our net interest rate spread to 0.61% for the three months ended December 31, 2024 from 0.88% for the three months ended December 31, 2023. Our net interest margin decreased 26 basis points to 1.09% for the three months ended December 31, 2024 from 1.35% for the three months ended December 31, 2023.

We recorded a $218,000 recovery for credit losses for the three months ended December 31, 2024 compared to a no provision for credit losses for the three-month period ended December 31, 2023. The recovery in the fourth quarter of 2024 reflects the decrease in the loan and securities portfolio.

Non-interest income increased by $136,000, or 48.2%, to $419,000 for the three months ended December 31, 2024 from $283,000 for the three months ended December 31, 2023. Bank-owned life insurance income increased $16,000, or 7.7%, due to higher balances during 2024. Gain on sale of assets was $74,000 as proceeds from the sale-leaseback transaction exceeded the loss on securities.

For the three months ended December 31, 2024, non-interest expense decreased $1.3 million, or 26.9%, over the comparable December 31, 2023 period. Salaries and employee benefits decreased $776,000, or 25.2%, due to lower headcount. Professional fees decreased $141,000, or 56.9% due to lower legal costs in 2024. FDIC insurance premiums increased $12,000, or 12.1%, due to a higher assessment rate in 2024. Data processing expense increased $23,000, or 9.3%, due to higher processing costs. Director fees increased $14,000, or 9.9%, due to higher pension expense. The decrease in advertising expense of $35,000, or 36.4%, was due to reduced promotions for branch locations and less promotions on deposit and loan products. Other expense decreased $456,000, or 68.2%, as 2023 expenses were elevated due to a pending fraud claim that was under review with the insurance company.

Income tax expense increased $998,000, or 182.1%, to an expense of $450,000 for the three months ended December 31, 2024 from a benefit of $548,000 for the three months ended December 31, 2023. The increase was due to tax reserves on uncertain deferred tax assets.

Comparison of Operating Results for the Twelve Months Ended December 31, 2024 and December 31, 2023

Net income decreased by $2.8 million, or 437.8%, to a net loss of $2.2 million for the twelve months ended December 31, 2024 from net income of $643,000 for the twelve months ended December 31, 2023. This decrease was primarily due to a decrease of $4.4 million in net interest income, offset by a decrease of $1.2 million in non-interest expense and by an increase of $209,000 in non-interest income and $209,000 in income tax benefit.

Interest income increased $4.4 million, or 12.0%, from $37.3 million for the twelve months ended December 31, 2023 to $41.7 million for the twelve months ended December 31, 2024 due to increases in the average balances of and higher yields on interest-earning assets.

Interest income on cash and cash equivalents increased $38,000, or 6.7%, to $606,000 for the twelve months ended December 31, 2024 from $568,000 for the twelve months ended December 31, 2023 due to a 71 basis point increase in the average yield from 5.23% for the twelve months ended December 31, 2023 to 5.94% for the twelve months ended December 31, 2024 due to the higher interest rate environment for most of 2024. This was offset by a $671,000 decrease in the average balance to $10.2 million for the twelve months ended December 31, 2024 from $10.9 million for the twelve months ended December 31, 2023, reflecting the use of excess liquidity primarily to fund securities purchases.

Interest income on loans increased $1.4 million, or 4.3%, to $33.4 million for the twelve months ended December 31, 2024 compared to $32.0 million for the twelve months ended December 31, 2023 due primarily to a 20 basis point increase in the average yield from 4.49% for the twelve months ended December 31, 2023 to 4.69% for the twelve months ended December 31, 2024. The increase was offset by a $661,000 decrease in the average balance to $713.1 million for the twelve months ended December 31, 2024 from $713.8 million for the twelve months ended December 31, 2023.

Interest income on securities increased $2.7 million, or 66.7%, to $6.9 million for the twelve months ended December 31, 2024 from $4.2 million for the twelve months ended December 31, 2023 due to a 101 basis point increase in the average yield from 2.87% for the twelve months ended December 31, 2023 to 3.88% for the twelve months ended December 31, 2024 and by a $33.8 million increase in the average balance of securities to $178.7 million for the twelve months ended December 31, 2024 from $144.9 million for the twelve months ended December 31, 2023.

Interest expense increased $8.9 million, or 39.9%, from $22.3 million for the twelve months ended December 31, 2023 to $31.2 million for the twelve months ended December 31, 2024 due to increases in the average balance of and higher costs on interest-bearing liabilities. During the twelve months ended December 31, 2024, the use of the cash flow hedges reduced the interest expense on the Federal Home Loan Bank advances by $1.5 million.

Interest expense on interest-bearing deposits increased $6.6 million, or 36.4%, to $24.6 million for the twelve months ended December 31, 2024 from $18.0 million for the twelve months ended December 31, 2023. The increase was due to a 112 basis point increase in the average cost of interest-bearing deposits to 3.97% for the twelve months ended December 31, 2024 from 2.85% for the twelve months ended December 31, 2023, offset by a $12.3 million decrease in the average balance of interest-bearing deposits. The increase in the average cost of deposits was due to the higher interest rate environment and a change in the composition of the deposit portfolio. The average balances of certificates of deposit increased $10.2 million to $508.3 million for the twelve months ended December 31, 2024 from $498.1 million for the twelve months ended December 31, 2023 while NOW and money market accounts and savings accounts decreased $18.1 million and $4.4 million for the twelve months ended December 31, 2024, respectively, compared to the twelve months ended December 31, 2023.

Interest expense on Federal Home Loan Bank borrowings increased $2.3 million, or 54.4%, from $4.3 million for the twelve months ended December 31, 2023 to $6.6 million for the twelve months ended December 31, 2024. The increase was due to an increase in the average balance of borrowings of $59.2 million to $176.0 million for the twelve months ended December 31, 2024 from $116.8 million for the twelve months ended December 31, 2023. The increase was due to an increase in the average cost of 9 basis points to 3.76% for the twelve months ended December 31, 2024 from 3.67% for the twelve months ended December 31, 2023 due to the new borrowings at higher rates. At December 31, 2024, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value.

Net interest income decreased $4.4 million, or 29.5%, to $10.6 million for the twelve months ended December 31, 2024 from $15.0 million for the twelve months ended December 31, 2023. The decrease reflected a 62 basis point decrease in our net interest rate spread to 0.66% for the twelve months ended December 31, 2024 from 1.28% for the twelve months ended December 31, 2023. Our net interest margin decreased 55 basis points to 1.16% for the twelve months ended December 31, 2024 from 1.71% for the twelve months ended December 31, 2023.

We recorded a $148,000 recovery of credit losses for the twelve months ended December 31, 2024 compared to a $125,000 recovery for credit losses for the twelve-month period ended December 31, 2023 which reflected a decrease in the loan and securities portfolios, as well as no charge-offs during the years. This recovery was inclusive of the effect due to the transfer of certain securities from the held to maturity portfolio to the available for sale portfolio, which resulted in a $108,000 recovery for credit losses.

Non-interest income increased by $209,000, or 18.4%. Gain on sale of assets increased $74,000 while fee and service charged income increased $22,000 or 10.6%, and income related to bank owned life insurance increased $90,000, or 11.5%, due to higher balances during 2024.

For the twelve months ended December 31, 2024, non-interest expense decreased $1.2 million, or 7.4%, compared to the twelve months ended December 31, 2023. Salaries and employee benefits decreased $1.1 million, or 10.9%, as 2023 amounts included an accrual of a severance contract for the retirement of the previous President and a higher employee count when compared to 2024. Professional fees increased $129,000 or 19.5%, due to higher legal expense. Data processing increased $234,000, or 24.1%, due to higher processing costs. Other expense decreased $369,000, or 27.8%, as 2023 amounts included charges for a pending fraud claim that is under review with the insurance company.

Income tax benefit increased $209,000, or 129.1%, to a benefit of $372,000 for the twelve months ended December 31, 2024 from a benefit of $162,000 for the twelve months ended December 31, 2023. The increase in benefit was due to $3.0 million, or 629.2%, of lower taxable income. The effective tax rate for the twelve months ended December 31, 2024 and December 31, 2023 was (14.62%) and (33.76%), respectively. The benefit would have been higher but there were valuation reserves on certain deferred tax assets as of December 31, 2024.

Balance Sheet Analysis

Total assets were $971.5 million at December 31, 2024, representing an increase of $32.2 million, or 3.4%, from December 31, 2023. Cash and cash equivalents increased $27.3 million during the period primarily due to loan payments received and growth in deposits and borrowings. Net loans decreased $3.0 million, or 0.4%, due to $63.8 million in repayments, partially offset by new production of $61.2 million. Due to the interest rate environment, we have seen a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods. Securities held to maturity were reclassified to securities available for sale which decreased an aggregate $1.2 million or 0.9%, due to the repayments of mortgage-backed securities and maturities of corporate bonds. Right of use assets increased $10.8 million due to new right-of-use lease assets recognized as part of the sale-leaseback transaction.

Delinquent loans increased $1.7 million to $14.3 million, or 2.01% of total loans, at December 31, 2024. The increase was mostly due to one commercial real estate loan with a balance of $755,000 and two residential mortgages totaling $653,000, all of which are classified as nonaccrual. During the same timeframe, non-performing assets increased to $14.0 million and were 1.44% of total assets at December 31, 2024. The Company’s allowance for credit losses was 0.37% of total loans and 18.77% of non-performing loans at December 31, 2024 compared to 0.39% of total loans and 21.81% of non-performing loans at December 31, 2023. At that date, $10.9 million, or 76.0%, of the total non-performing loans consisted of one construction loan with a loan-to-value of 45%, which required no specific reserve. The Bank does not have any exposure to commercial real estate loans secured by office space.

Total liabilities increased $32.0 million, or 4.0%, to $834.2 million mainly due to a $16.8 million increase in deposits and by a $4.5 million increase in borrowings. Lease liabilities also increased $10.8 million due to new lease liabilities recognized as part of the sale-leaseback transaction. Total deposits increased $16.9 million, or 2.7%, to $642.2 million at December 31, 2024 from $625.3 million at December 31, 2023. The increase in deposits reflected increases in NOW, money market and savings accounts, which increased by $14.7 million from $101.5 million at December 31, 2023 to $116.2 million at December 31, 2024 and by an increase in non-interest bearing accounts, which increased by $2.1 million to $32.7 million from $30.6 million at December 31, 2023. At December 31, 2024, brokered deposits were $101.6 million or 15.8% of deposits and municipal deposits were $30.7 million or 4.8% of deposits. At December 31, 2024, uninsured deposits represented 6.9% of the Bank’s total deposits. Federal Home Loan Bank advances increased $4.5 million, or 2.7%. Total borrowing capacity at the Federal Home Loan Bank is $280.4 million, of which $172.2 million is advanced.

Total stockholders’ equity increased $116,000 to $137.3 million, which was largely unchanged from last year. The increase was due to a reduction in the accumulated other comprehensive loss on the securities portfolio of $2.9 million, offset by a net loss of $2.2 million and the repurchase of 221,130 shares of stock at a total cost of $1.7 million. At December 31, 2024, the Company’s ratio of average stockholders’ equity-to-average total assets was 14.10%, compared to 14.89% at December 31, 2023.

About Bogota Financial Corp.

Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from seven offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, Teaneck and Upper Saddle River, New Jersey and operates a loan production office in Spring Lake, New Jersey.

Forward-Looking Statements

This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, potential recessionary conditions, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio; changes in the quality of our loan and security portfolios, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.

The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.


BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

	As of December 31, 2024			As of December 31, 2023
ASSETS
Cash and due from banks	$	18,020,527		$	13,567,115
Interest-bearing deposits in other banks		34,211,681			11,362,356
Cash and cash equivalents		52,232,208			24,929,471

Securities available for sale		140,307,447			68,888,179
Securities held to maturity (fair value of $70,699,651 at December 31, 2023)		–			72,656,179
Loans, net of allowance $2,620,949 and $2,785,949, respectively		711,716,236			714,688,635
Premises and equipment, net		4,727,302			7,687,387
Federal Home Loan Bank (“FHLB”) stock		8,803,000			8,616,100
Accrued interest receivable		4,232,563			3,932,785
Core deposit intangibles		152,893			206,116
Bank owned life insurance		31,859,604			30,987,851
Right of use asset		10,776,596			–
Other assets		6,682,035			6,731,500
Total assets	$	971,489,884		$	939,324,203

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Deposits
Non-interest bearing	$	32,681,963		$	30,554,842
Interest bearing		609,506,079			594,792,300
		642,188,042			625,347,142

FHLB advances-short term		29,500,000			37,500,000
FHLB advances-long term		142,673,182			130,189,663
Advance payments by borrowers for taxes and insurance		2,809,205			2,733,709
Lease liability		10,780,363			–
Other liabilities		6,249,932			6,380,486
Total liabilities		834,200,724			802,151,000

Stockholders’ Equity
Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at December 31, 2024, and 2023		—			—
Common stock $0.01 par value, 30,000,000 shares authorized, 13,059,175 issued and outstanding at December 31, 2024 and 13,279,230 at December 31, 2023		130,591			132,792
Additional Paid-In capital		55,269,962			56,149,915
Retained earnings		90,006,649			92,177,068
Unearned ESOP shares (382,933 shares at December 31, 2024 and 409,750 shares at December 31, 2023)		(4,520,594	)		(4,821,798	)
Accumulated other comprehensive loss		(3,597,448	)		(6,464,774	)
Total stockholders’ equity		137,289,160			137,173,203
Total liabilities and stockholders’ equity	$	971,489,884		$	939,324,203


BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Interest income
Loans	$	8,522,844		$	8,224,488		$	33,411,221		$	32,046,033
Securities
Taxable		1,641,126			1,027,755			6,888,462			4,070,144
Tax-exempt		11,483			13,135			50,892			91,428
Other interest-earning assets		418,634			300,656			1,399,170			1,072,240
Total interest income		10,594,087			9,566,034			41,749,745			37,279,845
Interest expense
Deposits		6,200,367			5,245,865			24,584,690			18,023,772
FHLB advances		1,894,789			1,382,244			6,613,845			4,282,603
Total interest expense		8,095,156			6,628,109			31,198,535			22,306,375
Net interest income		2,498,931			2,937,925			10,551,210			14,973,470
Provision (credit) for credit losses		(218,000	)		—			(148,000	)		(125,000	)
Net interest income after provision (credit) for credit losses		2,716,931			2,937,925			10,699,210			15,098,470
Non-interest income
Fees and service charges		64,285			47,382			228,685			206,763
Gain on sale of loans		20,232			—			31,942			29,375
Gain on sale of properties		9,005,245			—			9,005,245			—
Loss on sale of securities		(8,930,843	)		—			(8,930,843	)		—
Bank-owned life insurance		223,616			207,453			871,753			781,526
Other		36,202			27,711			141,622			121,371
Total non-interest income		418,737			282,546			1,348,404			1,139,035
Non-interest expense
Salaries and employee benefits		2,345,404			3,082,176			8,750,350			9,820,128
Occupancy and equipment		348,778			359,937			1,467,517			1,474,107
FDIC insurance assessment		110,464			98,525			424,090			418,215
Data processing		274,889			251,485			1,203,181			969,398
Advertising		60,840			95,681			371,790			465,064
Director fees		155,699			141,639			622,799			619,650
Professional fees		107,129			248,526			789,646			661,045
Other		212,632			668,220			960,230			1,329,520
Total non-interest expense		3,615,835			4,946,189			14,589,603			15,757,127
(Loss) income before income taxes		(480,167	)		(1,725,718	)		(2,541,989	)		480,378
Income tax (benefit) expense		449,834			(547,958	)		(371,569	)		(162,157	)
Net (loss) income	$	(930,001	)	$	(1,177,760	)	$	(2,170,420	)	$	642,535
Earnings (loss) per Share – basic	$	(0.07	)	$	(0.09	)	$	(0.17	)	$	0.05
Earnings (loss) per Share – diluted	$	(0.07	)	$	(0.09	)	$	(0.17	)	$	0.05
Weighted average shares outstanding – basic		12,686,765			12,767,410			12,767,628			12,891,847
Weighted average shares outstanding – diluted		12,686,765			12,767,410			12,767,628			12,891,847


BOGOTA FINANCIAL CORP. SELECTED RATIOS (unaudited)

	At or For the Three Months Ended December 31,						At or For the Twelve Months Ended December 31,
	2024			2023			2024			2023
Performance Ratios ⁽¹⁾:
(Loss) return on average assets (2)		(0.09	)%		(0.51	)%		(0.22	)%		0.07	%
(Loss) return on average equity (3)		(0.68	)%		(3.43	)%		(1.59	)%		0.46	%
Interest rate spread ⁽⁴⁾		0.61	%		0.88	%		0.66	%		1.28	%
Net interest margin ⁽⁵⁾		1.09	%		1.35	%		1.16	%		1.71	%
Efficiency ratio ⁽⁶⁾		123.93	%		153.59	%		122.61	%		97.04	%
Average interest-earning assets to average interest-bearing liabilities		113.67	%		115.71	%		114.48	%		116.95	%
Net loans to deposits		110.83	%		114.29	%		110.83	%		114.29	%
Equity to assets ⁽⁷⁾		13.99	%		14.94	%		14.10	%		14.89	%
Capital Ratios:
Tier 1 capital to average assets								13.34	%		15.24	%
Asset Quality Ratios:
Allowance for credit losses as a percent of total loans								0.37	%		0.39	%
Allowance for credit losses as a percent of non-performing loans								18.77	%		21.81	%
Net charge-offs to average outstanding loans during the period								0.00	%		0.00	%
Non-performing loans as a percent of total loans								1.95	%		1.79	%
Non-performing assets as a percent of total assets								1.44	%		1.36	%

(1	)	Certain performance ratios for the three-month periods are annualized.
(2	)	Represents net income divided by average total assets.
(3	)	Represents net income divided by average stockholders’ equity.
(4	)	Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5%.
(5	)	Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2024 and 2023.
(6	)	Represents non-interest expenses divided by the sum of net interest income and non-interest income.
(7	)	Represents average stockholders’ equity divided by average total assets.

LOANS

Loans are summarized as follows at December 31, 2024 and December 31, 2023:

	December 31,			December 31,
	2024			2023
Real estate:		(unaudited)
Residential First Mortgage	$	472,747,542		$	486,052,422
Commercial Real Estate		118,008,866			99,830,514
Multi-Family Real Estate		74,152,418			75,612,566
Construction		43,183,657			49,302,040
Commercial and Industrial		6,163,747			6,658,370
Consumer		80,955			18,672
Total loans		714,337,185			717,474,584
Allowance for credit losses		(2,620,949	)		(2,785,949	)
Net loans	$	711,716,236		$	714,688,635

The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated (unaudited).

	At December 31,
	2024								2023
	Amount		Percent			Average Rate			Amount		Percent			Average Rate
	(Dollars in thousands)
Noninterest bearing demand accounts	$	32,681,963		5.09	%		—	%	$	30,554,842		4.89	%		—	%
NOW accounts		55,048,614		8.62			2.53			41,320,723		6.61			1.90
Money market accounts		24,578,021		2.18			0.58			14,641,846		2.34			0.30
Savings accounts		47,001,817		7.3			1.90			45,554,964		7.28			1.76
Certificates of deposit		482,877,627		76.81			4.37			493,274,767		78.88			4.00
Total	$	642,188,042		100.00	%		3.73	%	$	625,347,142		100.00	%		3.42	%

Average Balance Sheets and Related Yields and Rates

The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.

	Three Months Ended December 31,
	2024								2023
	Average			Interest and		Yield/			Average			Interest and		Yield/
	Balance			Dividends		Cost ⁽³⁾			Balance			Dividends		Cost ⁽³⁾
	(Dollars in thousands)
	(unaudited)
Assets:
Cash and cash equivalents	$	13,547		$	191		5.61	%	$	9,433		$	145		6.08	%
Loans		717,433			8,523		4.73	%		714,380			8,224		4.57	%
Securities		175,308			1,653		3.77	%		133,241			1,041		3.12	%
Other interest-earning assets		9,711			227		9.37	%		7,216			156		8.70	%
Total interest-earning assets		915,999			10,594		4.61	%		864,270			9,566		4.40	%
Non-interest-earning assets		63,511								56,543
Total assets	$	979,510							$	920,813
Liabilities and equity:
NOW and money market accounts	$	67,362		$	366		2.16	%	$	67,510		$	310		1.82	%
Savings accounts		44,425			213		1.91	%		44,855			205		1.81	%
Certificates of deposit		501,875			5,621		4.46	%		497,147			4,731		3.78	%
Total interest-bearing deposits		613,662			6,200		4.02	%		609,512			5,246		3.41	%
Federal Home Loan Bank advances ⁽¹⁾		192,196			1,895		3.92	%		137,445			1,382		3.99	%
Total interest-bearing liabilities		805,858			8,095		4.00	%		746,957			6,628		3.52	%
Non-interest-bearing deposits		32,734								34,835
Other non-interest-bearing liabilities		3,837								1,454
Total liabilities		842,429								783,246
Total equity		137,081								137,567
Total liabilities and equity	$	979,510							$	920,813
Net interest income				$	2,499							$	2,938
Interest rate spread ⁽²⁾							0.61	%							0.88	%
Net interest margin ⁽³⁾							1.09	%							1.35	%
Average interest-earning assets to average interest-bearing liabilities		113.67	%							115.71	%

1.	Cash flow hedges are used to manage interest rate risk. During the three months ended December 31, 2024, the net effect on interest expense on the Federal Home Loan Bank advances was a reduced expense of $280,000.
2.	Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
3.	Net interest margin represents net interest income divided by average total interest-earning assets.

	Twelve Months Ended December 31,
	2024								2023
	Average			Interest and		Yield/			Average			Interest and		Yield/
	Balance			Dividends		Cost ⁽³⁾			Balance			Dividends		Cost ⁽³⁾
	(Dollars in thousands)
	(unaudited)
Assets:
Cash and cash equivalents	$	10,197		$	606		5.94	%	$	10,868		$	568		5.23	%
Loans		713,138			33,412		4.69	%		713,799			32,046		4.49	%
Securities		178,684			6,939		3.88	%		144,880			4,162		2.87	%
Other interest-earning assets		9,106			793		8.71	%		6,389			504		7.89	%
Total interest-earning assets		911,125			41,750		4.58	%		875,936			37,280		4.26	%
Non-interest-earning assets		59,511								54,925
Total assets	$	970,636							$	930,861
Liabilities and equity:
NOW and money market accounts	$	67,561		$	1,359		2.01	%	$	85,663		$	1,399		1.63	%
Savings accounts		43,975			821		1.87	%		48,351			580		1.20	%
Certificates of deposit		508,327			22,405		4.41	%		498,129			16,045		3.22	%
Total interest-bearing deposits		619,863			24,585		3.97	%		632,143			18,024		2.85	%
Federal Home Loan Bank advances ⁽¹⁾		175,997			6,614		3.76	%		116,816			4,283		3.67	%
Total interest-bearing liabilities		795,860			31,199		3.92	%		748,959			22,307		2.98	%
Non-interest-bearing deposits		31,572								38,636
Other non-interest-bearing liabilities		6,303								4,627
Total liabilities		833,735								792,222
Total equity		136,901								138,639
Total liabilities and equity	$	970,636							$	930,861
Net interest income				$	10,551							$	14,973
Interest rate spread ⁽²⁾							0.66	%							1.28	%
Net interest margin ⁽³⁾							1.16	%							1.71	%
Average interest-earning assets to average interest-bearing liabilities		114.48	%							116.95	%

1.	Cash flow hedges are used to manage interest rate risk. During the twelve months ended December 31, 2024, the net effect on interest expense on the Federal Home Loan Bank advances was a reduced expense of $1.5 million.
2.	Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
3.	Net interest margin represents net interest income divided by average total interest-earning assets.

Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

	Three Months Ended December 31,									Twelve Months Ended December 31,
	2024 Compared to Three									2024 Compared to Twelve Months
	Months Ended December 31, 2023									Ended December 31, 2023
	Increase (Decrease) Due to									Increase (Decrease) Due to
	Volume			Rate			Net			Volume			Rate			Net
	(In thousands)
	(unaudited)
Interest income:
Cash and cash equivalents	$	114		$	(68	)	$	46		$	(37	)	$	75		$	38
Loans receivable		33			266			299			(30	)		1,396			1,366
Securities		369			243			612			1,108			1,669			2,777
Other interest earning assets		58			13			71			232			57			289
Total interest-earning assets		574			454			1,028			1,273			3,197			4,470
Interest expense:
NOW and money market accounts		(5	)	$	61		$	56			(328	)		288			(40	)
Savings accounts		(12	)		20			8			(57	)		298			241
Certificates of deposit		45			845			890			335			6,025			6,360
Federal Home Loan Bank advances		676			(163	)		513			2,221			110			2,331
Total interest-bearing liabilities		704			763			1,467			2,171			6,721			8,892
Net decrease in net interest income	$	(130	)	$	(309	)	$	(439	)	$	(898	)	$	(3,524	)	$	(4,422	)

Contacts
Kevin Pace – President & CEO, 201-862-0660 ext. 1110

The MIL Network –

February 15, 2025

MIL-OSI: Pinnacle Bankshares Corporation Announces 2024 4th Quarter & Full-Year Earnings

Source: GlobeNewswire (MIL-OSI)

ALTAVISTA, Va., Feb. 14, 2025 (GLOBE NEWSWIRE) — Net income for Pinnacle Bankshares Corporation (OTCQX:PPBN), the one-bank holding company (the “Company” or “Pinnacle”) for First National Bank (the “Bank”), was $2,800,000, or $1.27 per basic and diluted share, for the fourth quarter of 2024, while net income for the year ended December 31, 2024 was $9,178,000, or $4.15 per basic and diluted share. In comparison, net income was $2,279,000, or $1.04 per basic and diluted share, and $9,762,000 or $4.45 per basic and diluted share, respectively, for the same periods of 2023. Consolidated results for 2024 are unaudited.

2024 4^thQuarter & Full-Year Highlights
Income Statement comparisons are to the 4^thQuarter & year ended December 31, 2023
Balance Sheet, Capital Ratios, and Stock Price comparisons are to December 31, 2023

Income Statement

For the 4^thQuarter of 2024:

Net Income increased $521,000, or 23%, overall and 30% excluding Bank Owned Life Insurance (BOLI) proceeds.*

For 2024:

Net Income decreased $584,000, or 6%, overall and was approximately equal to 2023 Net Income excluding BOLI proceeds.*
Return on Assets was 0.92%.
Net Interest Income increased $2.3 million, or 7% while Net Interest Margin expanded to 3.70%.
Provision for Credit Losses increased to $752,000 due to loan growth of 11%. Asset Quality remains strong with low Nonperforming Loans and no Other Real Estate Owned (OREO).
Noninterest Income increased $499,000, or 7.5%, excluding BOLI proceeds, which was driven by higher fees from Merchant Card Processing and Sales of Mortgage Loans.*
Noninterest Expense increased $2.1 million, or 7%, primarily due to higher Core Operating System expenses as well as Salaries and Employee Benefits.

Balance Sheet

Cash and Cash Equivalents increased $20.6 million, or 24%, to $108 million.
Loans increased $70.5 million, or 11%, to $712 million.
Securities decreased $57.8 million, or 25%, to $176 million due to maturing U.S. Treasury Notes. The Securities Portfolio is relatively short term in nature with $58 million in U.S. Treasury Notes maturing during the first four months of 2025 providing liquidity, funding, and optionality.
Total Assets increased $27.5 million, or 3%, to $1.04 Billion.
Deposits increased $18.5 million, or 2%, to $951 million with Deposit Accounts growing 4%.
As of year-end, Liquidity was strong at 33%, and 12% excluding Available for Sale Securities.

Capital Ratios & Stock Price

The Bank’s Leverage Ratio increased to 9.21% due primarily to profitability, while its Total Risk Based Capital Ratio decreased slightly to 13.52% due to loan growth.
Pinnacle’s Stock Price ended the year at $31.20 per share, based on the last trade, which is an increase of $7.19, or 30%. Total Return was 34.11% for 2024.

*BOLI proceeds of $779,000 and $725,000 were received during the 4^thQuarter of 2024 and 2023, respectively. BOLI proceeds of $779,000 and $1,363,000 were received during full-year 2024 and 2023, respectively.

Net Income and Profitability

Net income generated during the fourth quarter of 2024 represents a $521,000, or 23%, increase as compared to the same time period of 2023. Net of BOLI proceeds, net income generated during the fourth quarter of 2024 represents a $467,000, or 30%, increase as compared to the same time period of 2023. The increase was driven by higher net interest income and noninterest income, partially offset by higher noninterest expense and higher provision for credit losses.

Net income generated for 2024 represents a $584,000, or 6%, decrease as compared to the prior year. Net of BOLI proceeds, net income generated for 2024 and was approximately equal to the prior year. The overall decrease was driven by higher noninterest expense and provision for credit losses, partially offset by higher net interest income.

Profitability as measured by the Company’s return on average assets (“ROA”) decreased to 0.92% for 2024, as compared to 1.00% for the same time period of 2023. Correspondingly, return on average equity (“ROE”) decreased to 12.49% for 2024, as compared to 15.69% for the same time period of 2023.

“We are pleased with Pinnacle’s 2024 core performance and investments made for our future through market expansion and talent acquisition,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank. He further commented, “Our Company continues to perform very well compared to peers and has benefitted from ample liquidity, an expanding net interest margin, and strong asset quality. These factors have contributed to enhanced returns for our shareholders through increased dividends and share price appreciation.”

Net Interest Income and Margin

The Company generated $9,279,000 in net interest income for the fourth quarter of 2024, which represents a $908,000, or 11%, increase as compared to $8,371,000 for the fourth quarter of 2023. Interest income increased $1,514,000, or 14%, due to higher yields on earning assets and increased loan volume, while interest expense increased $606,000, or 23%, due to higher interest rates paid on deposits and increased certificates of deposit volume.

The Company generated $35,448,000 in net interest income for 2024, which represents a $2,276,000, or 7%, increase as compared to $33,172,000 for 2023. Interest income increased $5,855,000, or 14%, as yield on earning assets increased 54 basis points to 4.98%. Interest expense increased $3,579,000, or 41%, due to higher interest rates paid on deposits as cost to fund earning assets increased 36 basis points to 1.28%. Net interest margin increased to 3.70% for 2024 from 3.52% for 2023.

Reserves for Credit Losses and Asset Quality

Provision for credit losses was $356,000 in the fourth quarter of 2024 as compared to $4,000 in the fourth quarter of 2023. For 2024, the provision for credit losses was $752,000 as compared to $70,000 in 2023. Provision expense increased for the quarter and year as a result of higher loan volume.

The allowance for credit losses (ACL) was $5,084,000 as of December 31, 2024, which represented 0.71% of total loans outstanding. In comparison, the ACL was $4,511,000 or 0.70% of total loans outstanding as of December 31, 2023. Non-performing loans to total loans decreased to 0.22% as of December 31, 2024, compared to 0.24% as of year-end 2023. ACL coverage of non-performing loans was 321% as of December 31, 2024, compared to 290% as of year-end 2023. Management views the allowance balance as being sufficient to offset potential future losses in the loan portfolio.

Noninterest Income and Expense

Noninterest income for the fourth quarter of 2024 increased $324,000, or 14%, to $2,681,000 as compared to $2,357,000 for the fourth quarter of 2023. The increase was primarily due to a $100,000 increase in fees generated from sales of mortgage loans, a $100,000 increase in other recoveries, a $45,000 increase in BOLI returns, including earlier referenced proceeds, a $23,000 increase in merchant card fees, and a $20,000 increase in service charges on loan accounts.

Noninterest income for 2024 decreased $85,000, or 1%, to $7,879,000 as compared to $7,964,000 for 2023. The slight decrease was mainly due to a $538,000 decrease in BOLI returns, including earlier referenced proceeds, and a $106,000 decrease in interchange fees. These decreases were partially offset by a $153,000 increase in fees generated from the sale of mortgage loans, a $126,000 increase in merchant card fees, a $98,000 increase in other recoveries, a $63,000 increase in nonsufficient funds and other deposit service charges, a $58,000 increase in service charges on loan accounts, and a $53,000 increase in commissions and fees from sales of investment and insurance products. Excluding BOLI proceeds, noninterest income increased $499,000, 7.5%, year-over-year.

Noninterest expense for the fourth quarter of 2024 increased $280,000, or 3%, to $8,373,000 as compared to $8,093,000 for the fourth quarter of 2023. The increase was primarily due to a $310,000 increase in salaries and employee benefits, a $75,000 increase in occupancy expense, and a $24,000 increase in dealer loan expense partially offset by a $293,000 decrease in core operating system expenses.

Noninterest expense for 2024 increased $2,137,000, or 7%, to $31,417,000 as compared to $29,280,000 for 2023. The increase was mainly due to a $758,000 increase in salaries and employee benefits, a $401,000 increase in core operating system expenses, a $213,000 increase in occupancy expense, a $210,000 in other losses, and a $133,000 increase dealer loan expenses.

The Balance Sheet and Liquidity

Total assets as of December 31, 2024, were $1,043,994,000, up $27,465,000, or 3%, from $1,016,528,000 as of December 31, 2023. The principal components of the Company’s assets as of December 31, 2024, were $711,918,000 in total loans, $175,816,000 in securities, and $108,213,000 in cash and cash equivalents. For 2024, total loans increased $70,481,000, or 11%, from $641,437,000, securities decreased $57,762,000, or 25%, from $233,579,000, and cash and cash equivalents increased $20,624,000, or 24%, from $87,589,000.

The majority of the Company’s securities portfolio is relatively short-term in nature with forty-nine percent (49%) invested in U.S. Treasury Notes having an average maturity of less than a year with $58,000,000 maturing during the first four months of 2025. The Company’s entire securities portfolio was classified as available for sale on December 31, 2024, which provides transparency regarding unrealized losses. Unrealized losses associated within the available for sale securities portfolio were $11,817,000 as of December 31, 2024, or six percent (6%) of book value, an improvement from $14,943,000 as of December 31, 2023.

The Company had a strong liquidity ratio of 33% as of December 31, 2024. The liquidity ratio excluding the available for sale securities portfolio was 12% providing the opportunity to sell excess funds at an attractive federal funds rate. The Company has access to multiple liquidity lines of credit through its correspondent banking relationships and the Federal Home Loan Bank. None of these contingency funding sources have been utilized.

Total liabilities as of December 31, 2024 were $965,608,000, up $17,485,000, or 2%, from $948,123,000 as of December 31, 2023, as deposits increased $18,475,000, or 2%, in 2024 to $950,919,000 from $932,444,000. First National Bank’s number of deposit accounts increased 4% during the same time period as the Bank has benefited from the closures of large national bank branches and bank mergers within markets served along with its reputation for providing extraordinary customer service.

Total stockholders’ equity as of December 31, 2024 was $78,386,000 and consisted primarily of $69,035,000 in retained earnings. In comparison, as of December 31, 2023 total stockholders’ equity was $68,405,000. The increase is due primarily to 2024 profitability and an increase in the market value of the securities portfolio and pension assets. Both the Company and Bank remain “well capitalized” per all regulatory definitions.

New Full Service Branch in South Boston

On January 2, 2025, First National Bank opened a full service branch at 4027 Halifax Road, South Boston, Virginia. This is in addition to the Bank opening a Loan Production Office (LPO) at 97A Main Street, South Boston, Virginia in the third quarter of 2024. We have had great response from the South Boston and Halifax community and look forward to servicing customers with a community bank approach.

Company Information

Pinnacle Bankshares Corporation is a locally managed community banking organization serving Central and Southern Virginia. The one-bank holding company of First National Bank serves market areas consisting primarily of all or portions of the Counties of Amherst, Bedford, Campbell, Halifax, and Pittsylvania, and the Cities of Charlottesville, Danville, and Lynchburg. The Company has a total of nineteen branches with one branch in Amherst County within the Town of Amherst, two branches in Bedford County; five branches in Campbell County, including two within the Town of Altavista, where the Bank was founded; one branch in the City of Charlottesville, three branches in the City of Danville; three branches in the City of Lynchburg; and three branches in Pittsylvania County, including one within the Town of Chatham. A Loan Production Office and a full-service branch have recently been opened in the South Boston area of Halifax County. First National Bank is in its 117^th year of operation.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of federal securities laws that involve significant risks and uncertainties. Any statements contained herein that are not historical facts are forward-looking and are based on current assumptions and analysis by the Company. These forward-looking statements, including statements made in Mr. Hall’s quotes may include, but are not limited to, statements regarding the credit quality of our asset portfolio in future periods, the expected losses of nonperforming loans in future periods, returns and capital accretion during future periods, our cost of funds, the maintenance of our net interest margin, future operating results and business performance and our growth initiatives. Although we believe our plans and expectations reflected in these forward-looking statements are reasonable, our ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and we can give no assurance that these plans or expectations will be achieved. Factors that could cause actual results to differ materially from management’s expectations include, but are not limited to: changes in consumer spending and saving habits that may occur, including increased inflation; changes in general business, economic and market conditions; attracting, hiring, training, motivating and retaining qualified employees; changes in fiscal and monetary policies, and laws and regulations; changes in interest rates, inflation rates, deposit flows, loan demand and real estate values; changes in the quality or composition of the Company’s loan portfolio and the value of the collateral securing loans; changes in macroeconomic trends and uncertainty, including liquidity concerns at other financial institutions, and the potential for local and/or global economic recession; changes in demand for financial services in Pinnacle’s market areas; increased competition from both banks and non-banks in Pinnacle’s market areas; a deterioration in credit quality and/or a reduced demand for, or supply of, credit; increased information security risk, including cyber security risk, which may lead to potential business disruptions or financial losses; volatility in the securities markets generally, including in the value of securities in the Company’s securities portfolio or in the market price of Pinnacle common stock specifically; and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and you should not place undue reliance on such statements, which reflect our views as of the date of this release.

Selected Financial Highlights are shown on the next page.

Pinnacle Bankshares Corporation Selected Financial Highlights (12/31/2024 and 9/30/24 results unaudited) (In thousands, except ratios, share, and per share data)

	3 Months Ended			3 Months Ended			3 Months Ended
Income Statement Highlights	12/31/2024			9/30/2024			12/31/2023
Interest Income	$	12,543		$	12,262		$	11,029
Interest Expense		3,264			3,321			2,658
Net Interest Income		9,279			8,941			8,371
Provision for Credit Losses		356			136			4
Noninterest Income		2,681			1,763			2,357
Noninterest Expense		8,373			7,961			8,093
Net Income		2,800			2,085			2,279
Earnings Per Share (Basic)		1.27			0.94			1.04
Earnings Per Share (Diluted)		1.27			0.94			1.04

	Year Ended			Year Ended			Year Ended
Income Statement Highlights	12/31/2024			12/31/2023			12/31/2022
Interest Income	$	47,743		$	41,888		$	31,788
Interest Expense		12,295			8,716			1,348
Net Interest Income		35,448			33,172			30,440
Provision for Credit Losses		752			70			190
Noninterest Income		7,879			7,964			7,023
Noninterest Expense		31,417			29,280			27,237
Net Income		9,178			9,762			8,242
Earnings Per Share (Basic)		4.15			4.45			3.78
Earnings Per Share (Diluted)		4.15			4.45			3.78

Balance Sheet Highlights	12/31/2024			12/31/2023			12/31/2022
Cash and Cash Equivalents	$	108,213		$	87,589		$	36,521
Total Loans		711,918			641,437			632,896
Total Securities		175,816			233,579			251,114
Total Assets		1,043,994			1,016,528			969,931
Total Deposits		950,919			932,444			899,238
Total Liabilities		965,608			948,123			912,923
Stockholders’ Equity		78,386			68,405			57,008
Shares Outstanding		2,212,270			2,198,158			2,178,486

Ratios and Stock Price	12/31/2024			12/31/2023			12/31/2022
Gross Loan-to-Deposit Ratio		74.87	%		68.79	%		70.38	%
Net Interest Margin (Year-to-date)		3.70	%		3.52	%		3.18	%
Liquidity		32.60	%		37.27	%		32.68	%
Efficiency Ratio		72.49	%		71.20	%		72.71	%
Return on Average Assets (ROA)		0.92	%		1.00	%		0.82	%
Return on Average Equity (ROE)		12.49	%		15.69	%		14.62	%
Leverage Ratio (Bank)		9.21	%		8.82	%		8.06	%
Tier 1 Capital Ratio (Bank)		12.81	%		12.98	%		12.03	%
Total Capital Ratio (Bank)		13.52	%		13.67	%		12.63	%
Stock Price	$	31.20		$	24.01		$	19.20
Book Value	$	35.43		$	31.12		$	26.17


Asset Quality Highlights	12/31/2024			12/31/2023			12/31/2022
Nonaccruing Loans	$	1,582		$	1,557		$	1,561
Loans 90 Days or More Past Due and Accruing		0			0			221
Total Nonperforming Loans		1,582			1,557			1,782
Loan Modifications		109			357			1,056
Loans Individually Evaluated		2,010			2,287			2,884
Other Real Estate Owned (OREO) (Foreclosed Assets)		0			0			0
Total Nonperforming Assets		1,582			1,557			1,782
Nonperforming Loans to Total Loans		0.22	%		0.24	%		0.28	%
Nonperforming Assets to Total Assets		0.15	%		0.15	%		0.18	%
Allowance for Credit Losses	$	5,084		$	4,511		$	3,853
Allowance for Credit Losses to Total Loans		0.71	%		0.70	%		0.61	%
Allowance for Credit Losses to Nonperforming Loans		321	%		290	%		216	%

CONTACT: Pinnacle Bankshares Corporation, Bryan M. Lemley, 434-477-5882 or bryanlemley@1stnatbk.com

The MIL Network –

February 15, 2025

MIL-OSI Australia: Thousands of Central Coast first home buyers in their happy places thanks to stamp duty leg up

Source: New South Wales Premiere

Published: 14 February 2025

Released by: Minister for the Central Coast, Minister for the Hunter

More than 2,000 first home buyers have found their dream home on the Central Coast thanks to the Minns Labor Government’s signature stamp duty assistance program.

The 2,145 new homeowners on the Central Coast have saved a combined $47.6 million in stamp duty since July 2023.

The popular initiative has seen first home buyers across the Coast save an average of $22,185, significantly easing the pressure for people saving for a deposit.

The First Home Buyers Assistance Scheme provides a full exemption from stamp duty for eligible buyers purchasing up to $800,000, and a concession for purchases between $800,000 and $1 million.

In Gosford, 628 buyers have saved a combined $13.5 million, while 522 new home owners in Wyong saved $11.3 million.

In The Entrance, 307 buyers shared in $6.9 million in savings, and 65 buyers at Avoca Beach benefited by $1.3 million.

Statewide, total savings for more than 50,000 first home buyers across NSW have topped $1 billion.

The 50,000 families milestone coincides with the release of a helpful dashboard detailing the program’s impact suburb-by-suburb.

The First Home Buyers Assistance Dashboard also provides program statistics Central Coast wide – as it does for every Local Government Area and regional classification in the state. It will be updated regularly and can be viewed here: First home buyers assistance dashboard | Revenue NSW

First home buyers can learn more about the program and calculate their potential stamp duty savings here: First Home Buyers Assistance Scheme – how to apply | NSW Government

This program is just one part of a suite of reforms from the Minns Government to help address the housing crisis and ease cost of living pressures.

This includes sweeping reforms of the planning system to deliver more housing, including establishing the Housing Delivery Authority to speed up approvals.

Minister for the Central Coast David Harris said:

“This Minns Government program is fantastic news for the more than 2,000 families, couples and singles able to get into their first home sooner in our beautiful region.

“The more than $22,000 in average savings per homeowner is making a big difference for people saving up for a deposit.

“Home is where the heart is, and there’s nothing better for Coasties to have a place to call their own in a region they love.”

Minister for the Hunter and Member for Swansea Yasmin Catley said:

“Buying your first home is a major achievement and I’m thrilled the Minns Labor Government is helping so many first home buyers reach this milestone.

“Our community is a great place to live, work and play and this scheme is allowing people to build their dream life in one of the best places in NSW.”

Member for The Entrance David Mehan said:

“The Minns Labor Government’s stamp duty assistance program is making home ownership more accessible, providing real relief for local families entering the housing market.

“It’s great to see that local residents are benefiting from this fantastic initiative”

Member for Gosford Liesl Tesch said:

“With over 628 first home buyers in Gosford alone saving a combined $13.5 million dollars under this scheme, the Minns Labor Government is ensuring that families across NSW can achieve their dream of home ownership.

“I want the students that I taught to be able to make a home on the Central Coast, not be forced to leave their hometowns because they can’t afford a deposit to get into the housing market.

“This program is making home ownership a reality again for thousands of Coasties.”

MIL OSI News –

February 14, 2025
MIL-OSI: Patria Announces Changed Record Date for Previously Announced Regular Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

GRAND CAYMAN, Cayman Islands, Feb. 13, 2025 (GLOBE NEWSWIRE) — Patria Investments Limited (Nasdaq:PAX) has amended the record date of its recently declared quarterly cash dividend of US$0.15 per share from February 28, 2025 to February 25, 2025. The payment date for the quarterly dividend will remain March 17, 2025, as previously announced on February 12, 2025.

About Patria

Patria is a global alternative asset manager and industry leader in Latin America. Founded over 35 years ago, Patria has total assets under management of $41.9 billion, and offices in 13 cities on 4 continents. Patria aims to generate attractive long-term investment returns and, through a diversified platform with strategies that include Private Equity, Infrastructure, Credit, Real Estate, Public Equities and Global Private Markets Solutions, serve as the gateway to alternative investments for both local investors in Latin America, as well as global investors. Further information is available at www.patria.com.

Forward-Looking Statements

This press release may contain 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. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words, among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including but not limited to those described under the section entitled “Risk Factors” in our most recent annual report on Form 20-F, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings.

Contact: Patria Shareholder Relations
E. PatriaShareholderRelations@patria.com
T. +1 917 769 1611

The MIL Network –

February 14, 2025
MIL-OSI Security: Real Estate Executive Charged In Thirty-Million-Dollar Bank Fraud Scheme

Source: Office of United States Attorneys

Danielle Sassoon, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of KEVIN FENG GAO. The Indictment unsealed today charges GAO with committing bank fraud as part of a scheme to steal $30 million intended as an investment in Manhattan real estate. GAO will be presented today before U.S. Magistrate Judge Stewart D. Aaron.

U.S. Attorney Danielle Sassoon said: “As alleged, Kevin Gao orchestrated a complex scheme to create a fraudulent, unauthorized bank account and use the account to steal $30 million from a real estate investor. Bank fraud schemes undermine the integrity of our financial system by corrupting it for criminal purposes, and I commend the FBI and our dedicated team of prosecutors for their outstanding work in uncovering this massive fraud.”

FBI Assistant Director in Charge James E. Dennehy said: “Kevin Gao allegedly opened an unauthorized corporate bank account to intercept and steal a $30 million investment. This alleged establishment of an illicit bank account wrongfully diverted a significant sum from its intended use. The FBI remains dedicated to apprehending all individuals who implement deceitful measures to steal what is not owed to them.”

According to allegations in the Indictment:[1]

GAO carried out a fraudulent scheme to open and use an unauthorized bank account in the name of a company (the “Management Company”) that managed a real estate development project in Manhattan (the “Real Estate Project”). GAO was an executive at another company that participated in a joint venture to develop the Real Estate Project, but GAO had no authorization from the Management Company to open the account in its name (the “Fraudulent Account”).

When GAO applied to open the Fraudulent Account, GAO made false representations to employees of an FDIC-insured bank (the “Bank”), including falsely representing that GAO was opening the Fraudulent Account with the Management Company’s permission. Additionally, when a representative of the Bank asked GAO to provide a copy of the Management Company’s operating agreement, GAO provided a fraudulent document rather than the actual operating agreement.

After GAO created the Fraudulent Account, an investment company agreed to invest $30 million in the Real Estate Development managed by the Management Company. But the investment company transferred its $30 million into the Fraudulent Account created by GAO rather than a legitimate account actually held and controlled by the Management Company. GAO then dispersed the $30 million to several accounts under the control of GAO and his co-conspirators.

*   *   *

GAO, 37, of Queens, New York is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Ms. Sassoon praised the outstanding work of the FBI.

The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Christopher Brumwell and Maggie Lynaugh are in charge of the prosecution.

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

[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.

MIL Security OSI –

February 14, 2025
MIL-OSI: Key Tronic Corporation Executes New Lease to Expand Domestic Operations In Arkansas

Source: GlobeNewswire (MIL-OSI)

SPOKANE VALLEY, Wash., Feb. 13, 2025 (GLOBE NEWSWIRE) — Key Tronic Corporation, a provider of electronic manufacturing services (EMS), is expanding its clean-tech manufacturing operations in Arkansas, establishing its flagship manufacturing and research and development location in Springdale. The company anticipates investing more than $28 million in the new facility and expects to create over 400 new jobs in the next five years.

“We are pleased to announce the expansion of our U.S. manufacturing operations in Northwest Arkansas. Our new center of excellence in Springdale will provide both our employees and customers with cutting-edge technology and the increased capacity necessary to accommodate expected growth,” said Brett Larsen, CEO of Key Tronic. “We are committed to continuously investing in our capabilities and attracting innovative talent. Our people are our most valuable asset, and we are delighted to enhance our operations in a region where we have maintained a longstanding presence and a strong team and can benefit from a business-friendly environment.”

“When we invest in education and our workforce, we can attract companies like Key Tronic and ensure they have the skilled workforce they need. Arkansas LEARNS and ACCESS are laser-focused on that issue and help attract announcements like this one, which mean $28 million and nearly 400 jobs for Springdale,” said Governor Sanders.

Key Tronic will be shifting its existing Arkansas operations to a new larger facility in Springdale, located at 601 W Apple Blossom Avenue later in 2025, increasing its total U.S. production capacity by approximately 40 percent.

“Crossland purchased the land in 2021 with a vision to build a modern, best-in-class facility, and we are grateful that Key Tronic has chosen this location to call home. This building is part of a larger business park, representing an investment of over $100 million in the Springdale community,” said Director of Real Estate Mattie Crossland. “Our goal is to provide spaces that allow our tenants to run their businesses efficiently while also contributing to the growth and future of the community.”

Crossland Realty Group developed the 300,000-square-foot building shell in late 2023, with Crossland Construction completing Key Tronic’s tenant improvements, slated for completion in Q3 2025.

“Key Tronic has a long history of manufacturing electronics in Arkansas, and we are proud that the company has decided to expand their presence and increase production capacity in our state,” said Clint O’Neal, Executive Director of the Arkansas Economic Development Commission. “Congratulations to the Key Tronic team and to the City of Springdale on this major economic development win.”

“Key Tronic’s decision to relocate to Springdale is a strong endorsement of our city’s talented workforce, thriving economy, and commitment to fostering business success,” said Springdale Mayor Doug Sprouse. “This investment brings significant job opportunities to our community, further strengthening Springdale’s reputation as a prime destination for industry and innovation. We proudly welcome Key Tronic and look forward to their future growth here.”

“This exciting announcement would not have been possible without the leadership of Governor Sanders and the unwavering support of the Arkansas Economic Development Commission,” said Bill Rogers, president and CEO of the Springdale Chamber of Commerce. “Thanks to our regional partners and the proactive efforts of Mayor Sprouse’s administration, we were able to roll out the red carpet for Key Tronic. We are thrilled to welcome them to Springdale and look forward to supporting their success in our community.”

“Key Tronic’s reinvestment in Northwest Arkansas highlights our region’s strong workforce and pro-growth environment,” said Nelson Peacock, president and CEO of the Northwest Arkansas Council. “As a leader in electronics manufacturing, their expansion strengthens our economy, retains quality jobs and creates new opportunities—reinforcing our position as a top destination for business and innovation.”

About Key Tronic
Founded in 1969, Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico, China and Vietnam. The Company provides its customers with full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world’s leading original equipment manufacturers. Key Tronic has operated in Arkansas since 1985.

For more information about Key Tronic visit: www.keytronic.com.

About Crossland Construction Company
Crossland is a top-ranked construction firm offering a wide range of services through its family of companies. Crossland Construction provides general contracting, construction management, and much more. Crossland Realty, a division of Crossland Construction, offers complete real estate services, guiding clients through location scouting, planning, development, construction, and leasing. Crossland is dedicated to Building So Much More for its clients and the communities they serve. Learn more: www.crossland.com

About the Arkansas Economic Development Commission
At AEDC, we know economic advancement doesn’t happen by accident. We work strategically with businesses and communities to create strong economic opportunities, making Arkansas the natural choice for success. AEDC is a division of the Arkansas Department of Commerce. To learn more, visit ArkansasEDC.com.

Forward-Looking Statements
Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Key Tronic’s opportunities and its partnership, the potential success of Key Tronic and the customer, and related revenues. Forward-looking statements include all passages containing verbs such as aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets or nouns corresponding to such verbs. Forward-looking statements also include other passages that are primarily relevant to expected future events or revenue or that can only be fully evaluated by events that will occur in the future. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to: the success and timing of our expansion plans; the success and timing of ramping; availability and timing and receipt of critical parts or components; demand from customers and sales channels; the future of the global economic environment and its impact on our customers and suppliers; the availability of a healthy workforce; the accuracy of suppliers’ and customers’ forecasts; development and success of customers’ programs and products; success of new-product introductions; the risk of legal proceedings or governmental investigations relating to the previously reported financial statement restatements and related material weaknesses, the May 2024 cybersecurity incident and the subject of the internal investigation by the Company’s Audit Committee and related or other unrelated matters; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; impact of new governmental legislation and regulation, including tax reform, tariffs and related activities, such trade negotiations and other risks; and other factors, risks, and uncertainties detailed from time to time in the Company’s SEC filings.

FOR IMMEDIATE RELEASE

CONTACTS: Anthony G. Voorhees Michael Newman

Chief Financial Officer Investor Relations

Key Tronic Corporation StreetConnect

(509) 927-5345 (206) 729-3625

The MIL Network –

February 14, 2025
MIL-OSI: Prospect’s Real Estate Platform Provides $12 Million in Preferred Equity to Class A Stabilized Cash Flowing Multifamily Property in Scottsdale

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 13, 2025 (GLOBE NEWSWIRE) — Prospect Capital Management L.P. (“Prospect”), through its real estate platform, has closed on a preferred equity investment to recapitalize the Roadrunner on McDowell, a 356-unit, Class A stabilized cash flowing multifamily property in Scottsdale, Arizona. Constructed in 2021, the property is owned by KB Development, a privately-owned multifamily operator headquartered in California with a substantial presence in the greater Phoenix area. The property is professionally managed under the leadership of Amber Foster, COO of Caspian Properties.

^{Prospect’s Real Estate Platform Provides $12 Million in Preferred Equity to Class A Stabilized Cash Flowing Multifamily Property in Scottsdale.}

“Prospect’s real estate platform is actively investing capital in high-quality multifamily assets in growth-oriented markets, with Scottsdale as a prime example of the type of submarket where we perceive attractive long-term fundamentals,” said Grier Eliasek, Prospect’s President and COO. “This transaction underscores our ability to provide flexible and strategic capital to experienced and well-capitalized sponsors, and our pipeline of similar potential transactions continues to grow.”

“Roadrunner on McDowell offers a resort-style residential experience in one of Phoenix’s most compelling submarkets,” said Joseph Ryu, Principal and head of Prospect’s real estate credit platform. “With proximity to Old Town Scottsdale, Roadrunner is a highly-amenitized asset in a desirable market with strong secular demand.”

Peter Clasquin and Ian Hawk at Lument originated the Freddie Mac senior loan.

About Prospect Capital Management L.P.

Prospect, headquartered in New York City, is an SEC-registered investment adviser that, along with its predecessors and affiliates, has 37 years of experience investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of 150 professionals and offer investment solutions across credit, private equity, and real estate.

Prospect’s real estate platform invests in U.S. commercial real estate credit including senior mortgages, mezzanine loans and preferred and other equity investments. As of December 31, 2024, Prospect and its affiliates had invested in over 32,000 multifamily units, with initial property value of $3.5 billion, and realized 36 multifamily investments.

Prospect, together with its affiliates, has $8.3 billion of regulatory assets under management as of December 31, 2024. For more information, call (212) 448-0702 or visit www.prospectcap.com.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c75059c7-fa3a-49bc-88ce-79096150dc38

The MIL Network –

February 14, 2025
MIL-OSI United Kingdom: House price report for the fourth quarter 202413 February 2025 The house price report for the fourth quarter 2024 has been published today by Statistics Jersey. The Jersey House Price Index measures the combined average price of 1- and 2-bedroom flats together with… Read more
Source: Channel Islands – Jersey

13 February 2025

The house price report for the fourth quarter 2024 has been published today by Statistics Jersey.

The Jersey House Price Index measures the combined average price of 1- and 2-bedroom flats together with 2-, 3- and 4-bedroom houses. The index includes properties transacted through the Royal Court as well as share transfer properties.
Context

2023 saw a significant proportion of transactions (39%) take place as the result of completions occurring in new developments. In contrast, 2024 saw a much lower proportion of transactions (9%) take place as the result of new developments. Adjusting for this, the level of turnover in 2024 would be 25% higher when compared to 2023 (rather than 16% lower), when excluding new builds in both years.

It is worth noting that phases one and two of the First Step scheme completed sales during Q3 2024 and Q4 2024 respectively. 33 HPI eligible properties (around 5% of annual turnover) were sold as part of the scheme and assisted with the sale of 9 further properties indirectly, because of chains started by First Step purchases.

Annual Summary

In 2024:

on a calendar year basis:

the Jersey House Price Index was 8% lower than in 2023, which was:

the largest annual decrease in price since at least 1986

all property types saw decreases in annual mean and median prices

advertised private sector rental prices were 1% lower than in 2023

turnover of properties was 16% lower compared with 2023, due to decreased sales of flats (down by 42%); 2024 saw the lowest annual turnover since at least 2002

overall housing affordability improved on an annual basis:

all property types were more affordable to purchase than in 2023

a working household with mean net income was able to service a mortgage affordably on the purchase price of a median-priced 1-bedroom flat

a working household with mean net income was not able to service a mortgage affordably on the purchase price of a median-priced house of any size or a 2-bedroom flat

the ratio of median dwelling price to equivalised median household income in Jersey was lower compared to 2023 for all property types

Quarterly Summary

In the fourth quarter of 2024:
- on a rolling four-quarter basis, the mix-adjusted average price of dwellings sold in Jersey during the year ending Q4 2024 was 1% lower when compared with the previous quarter (year ending Q3 2024)
- on a quarterly basis:
- the turnover of properties was 7% higher than in Q4 2023 and 9% higher than in the previous quarter (Q3 2024)
- overall housing market activity, on a rolling four-quarter basis, was essentially unchanged compared with the previous quarter (Q3 2024) and 23% lower than in the corresponding quarter of 2023
- on a rolling four-quarter basis, advertised private sector rental prices were essentially unchanged during the year ending Q4 2024 compared with the year ending Q3 2024
MIL OSI United Kingdom –
February 14, 2025
MIL-OSI: The net asset value of EfTEN Real Estate Fund AS shares as of 31.01.2025
Source: GlobeNewswire (MIL-OSI)

EfTEN Real Estate Fund AS generated €2,556 thousand in consolidated rental income in January. In comparison, the fund’s rental income in December 2024 was €2,861 thousand, which included €238 thousand in turnover-based rent from shopping centers recognized at the end of the year. Rental income also decreased due to a rent discount agreement in Lithuania for the next six months, under which the tenant invested €135 thousand at their own expense in the improvement of rental premises.

In January, the lease agreement between a tenant of the office building at Pärnu mnt 102 and the fund’s subsidiary ended, resulting in 2,5 thousand sqm of vacant rental space. To meet market demand, the vacant office space will be converted into smaller units and leased gradually. The design work underlying the reconstruction of the rental premises has been completed, and construction work will begin shortly.

In Menulio 11 office building, where the fund has the largest vacancy, negotiations with a potential tenant interested in 9% of the leasable area have reached the stage of redesigning the rental premises. and procurement of technical solutions.

After the disclosure of the bankruptcy proceedings of the tenant at the Laagri Hortes gardening center, several prospective tenants and buyers have approached the fund. As a result, the fund’s management believes there are several good alternatives for further action.

The fund’s consolidated EBITDA in January amounted to €2,043 thousand (December 2024: €2,448 thousand).

The weighted average interest rate on the fund’s subsidiaries’ loans decreased to 4.78% by the end of January, down by 0.11 percentage points compared to the end of December. Since the peak in interest rates in December 2023, the weighted average interest rate on bank loans has fallen by a total of 1.13 percentage points.

The fund’s consolidated cash balance increased by €1,119 thousand in January, reaching €21,626 thousand, including short-term deposits, as of January 31, 2025.

As of January 31, 2025, the fund’s net asset value per share was €20.4905, and EPRA NRV was €21.3432. The net asset value per share increased by the usual 0.6% in January.

Marilin Hein
CFO
Phone +372 6559 515
E-mail: marilin.hein@eften.ee

Attachment
- EREF_reports_monthly_01.2025
The MIL Network –
February 13, 2025

MIL-OSI: Precision Drilling Announces 2024 Fourth Quarter and Year End Unaudited Financial Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, Feb. 12, 2025 (GLOBE NEWSWIRE) — This news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release. This news release contains references to certain Financial Measures and Ratios, including Adjusted EBITDA (earnings before income taxes, gain on acquisition, loss on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals and depreciation and amortization), Funds Provided by (Used in) Operations, Net Capital Spending, Working Capital and Total Long-term Financial Liabilities. These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies. See “Financial Measures and Ratios” later in this news release.

Financial Highlights and 2025 Capital Allocation Plans

Revenue in the fourth quarter was $468 million, an 8% decrease from 2023 as activity increases in Canadian drilling, well servicing, and international were more than offset by lower activity and day rates in the U.S.
Adjusted EBITDA⁽¹⁾ was $121 million in the quarter and included $15 million of share-based compensation charges, $4 million for rig reactivation costs and $4 million of non-recurring charges. In 2023, fourth quarter Adjusted EBITDA was $151 million and included share-based compensation charges of $13 million.
Net earnings attributable to shareholders was $15 million or $1.06 per share in the fourth quarter compared to $147 million or $10.42 per share as net earnings in 2023 included an income tax recovery of $69 million and a gain on acquisition of $26 million.
In 2024, we invested $217 million into our fleet and infrastructure, including multiple contracted rig upgrades and the strategic purchase of drill pipe for use in 2025. We expect to invest $225 million into our fleet and infrastructure in 2025, which may fluctuate with activity levels and customer contract upgrade opportunities.
For the year ended December 31, 2024, we achieved our annual debt reduction and return of shareholder capital targets, reducing debt by $176 million and repurchasing $75 million of common shares while building cash by $20 million. Precision has consistently met or exceeded its capital allocation goals since implementation in 2016.
For 2025, we expect to reduce debt by at least $100 million in 2025 and have increased our long-term debt reduction target to $700 million and extended our debt reduction period to 2027. In 2025, we plan to increase direct shareholder returns to 35% to 45% of free cash flow, before debt repayments. To the extent excess cash is generated these allocations may be increased.

Operational Highlights

Demand for our services continues to be strong and in 2024 our Canadian and international drilling rig utilization days increased 12% and 37%, respectively, while our well servicing rig operating hours increased 26% over 2023.
In the fourth quarter, Canada’s activity averaged 65 active drilling rigs versus 64 in the same quarter last year. Our Super Triple and Super Single rigs remain in high demand and are nearly fully utilized. Canadian revenue per utilization day was $35,675, up from $34,616 in the fourth quarter of 2023.
Our U.S. activity has remained relatively consistent since mid-2024. We averaged 34 drilling rigs in the fourth quarter with revenue per utilization day of US$30,991 versus 45 drilling rigs at US$34,452 in 2023’s fourth quarter.
International activity increased 6% over the same period last year while revenue per utilization day was US$49,636 compared to US$49,872 in the fourth quarter of 2023.
Service rig operating hours in the fourth quarter totaled 59,834, representing a 6% increase over the same quarter last year partially driven by the CWC Energy Services Corp. (CWC) acquisition in November of 2023.

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

MANAGEMENT COMMENTARY

“Through 2024 Precision demonstrated remarkable market resilience despite weaker than expected U.S. customer demand and late year customer budget exhaustion in Canada. We continued our long-term record of meeting or exceeding our capital allocation targets every year since 2016 with $176 million of debt reduction, $75 million of share buybacks, while increasing our cash balance by $20 million. In the fourth quarter, approximately $8 million of reactivation costs and non-recurring items impacted our financial results, along with slightly lower than expected Canadian customer demand. Despite these fourth quarter headwinds we continued investing in our core business lines, including purchasing approximately $18 million of drill pipe in advance of potential tariffs, investing $3 million to begin reactivating two idle Canadian Super Single rigs to meet demand in 2025, and upgrading one rig for Canadian heavy oil pad drilling opportunities.

“The outlook for Canada remains very strong given robust heavy oil activity following the startup of the Trans Mountain pipeline expansion in May 2024 and the imminent startup of LNG Canada in mid-2025. My enthusiasm is further underpinned by the pace of rig reactivations following the seasonal Christmas break and the stable winter activity we have experienced to date with 81 rigs working since mid-January. The uncertainty introduced by potential U.S. tariffs on Canadian oil and gas exports, has been tempered and we have not experienced any change in customer demand or their longer-term capital spending plans.

“In Canada, our drilling utilization days increased 12% over 2023 and our Super Triple and Super Single rigs, which represent approximately 80% of our Canadian fleet, are nearly fully utilized. Demand for our Super Triple fleet, which is the preferred rig for Montney drilling, is driven by robust condensate fundamentals and the startup of LNG Canada this year. Demand for our Super Single fleet is driven by increased activity in heavy oil targeted areas as customers are benefiting from improved commodity pricing, following the startup of Trans Mountain, and a softening Canadian dollar.

“Internationally, our drilling utilization days increased 37% in 2024 following the recertification and reactivation of four rigs in 2023. In 2024, we had eight rigs working on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years.

“In our Completion and Production Services business, our well servicing operating hours increased 26% over 2023 levels following the successful integration of CWC, where we achieved significant operating synergies. Our Completion and Production Services Adjusted EBITDA increased 30% year over year, which was slightly below our expectation due to late year customer budget exhaustion impacting our activity and rental business. I am very pleased with how we have transformed our Completion and Production Services business with two strategic tuck-in acquisitions. The High Arctic and CWC acquisitions more than doubled our Completion and Production revenue and Adjusted EBITDA since 2021 and solidified Precision as the premier well service provider in Canada.

“During the year, Precision generated $482 million of cash provided by operations, allowing us to meet our capital return targets and invest $217 million into our fleet and infrastructure, which included multiple drilling rig upgrades and the strategic purchase of drill pipe for use in 2025. We expect to invest approximately $225 million in 2025, which reflects a weaker Canadian dollar and includes expected customer funded upgrades across our North American operations, including approximately $30 million in US fleet upgrades for customers targeting extended reach laterals.

“With sustained free cash flow as a key differentiator of our business, we remain focused on reducing debt and increasing direct returns to shareholders. In 2025, we expect to reduce debt by at least $100 million, reinforcing our commitment to achieving a sustained Net Debt to Adjusted EBITDA ratio⁽¹⁾ of below 1.0 times. As we continue to realize the benefits of lower debt levels, we have increased our long-term debt reduction target by $100 million to $700 million and extended the debt reduction period by one year to 2027. In 2025, our goal is to increase our direct capital returns to shareholders by allocating 35% to 45% of free cash flow, before debt repayments, while continuing to move towards 50% of free cash flow thereafter, with excess cash potentially used to increase these allocations.

“I would like to thank our employees for their dedication and commitment to serving our customers, and our shareholders for their continued support. With positive long-term fundamentals associated with global oil and natural gas demand and particularly the unique fundamentals driving drilling activity in our core geographic markets, I am confident we will continue to drive shareholder value,” concluded Mr. Neveu.

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

SELECT FINANCIAL AND OPERATING INFORMATION
Financial Highlights

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)		2024		2023		% Change				2024		2023		% Change
Revenue		468,171		506,871			(7.6	)		1,902,328		1,937,854			(1.8	)
Adjusted EBITDA⁽¹⁾		120,526		151,231			(20.3	)		521,221		611,118			(14.7	)
Net earnings		14,930		146,722			(89.8	)		111,330		289,244			(61.5	)
Net earnings attributable to shareholders		14,795		146,722			(89.9	)		111,195		289,244			(61.6	)
Cash provided by operations		162,791		170,255			(4.4	)		482,083		500,571			(3.7	)
Funds provided by operations⁽¹⁾		120,535		145,189			(17.0	)		463,372		533,409			(13.1	)

Cash used in investing activities		61,954		57,627			7.5			202,986		214,784			(5.5	)
Capital spending by spend category⁽¹⁾
Expansion and upgrade		21,565		24,459			(11.8	)		52,066		63,898			(18.5	)
Maintenance and infrastructure		37,335		54,388			(31.4	)		164,632		162,851			1.1
Proceeds on sale		(8,570	)	(3,117	)		174.9			(30,395	)	(23,841	)		27.5
Net capital spending⁽¹⁾		50,330		75,730			(33.5	)		186,303		202,908			(8.2	)

Net earnings attributable to shareholders per share:
Basic		1.06		10.42			(89.8	)		7.81		21.03			(62.8	)
Diluted		1.06		9.81			(89.2	)		7.81		19.53			(60.0	)
Weighted average shares outstanding:
Basic		13,982		14,084			(0.7	)		14,229		13,754			3.5
Diluted		13,987		15,509			(9.8	)		14,234		15,287			(6.9	)

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}Operating Highlights

	For the three months ended December 31,							For the year ended December 31,
	2024		2023		% Change			2024		2023		% Change
Contract drilling rig fleet		214		214		–			214		214		–
Drilling rig utilization days:
U.S.		3,084		4,138		(25.5	)		12,969		17,961		(27.8	)
Canada		6,018		5,909		1.8			23,685		21,156		12.0
International		736		693		6.2			2,928		2,132		37.3
Revenue per utilization day:
U.S. (US$)		30,991		34,452		(10.0	)		32,531		35,040		(7.2	)
Canada (Cdn$)		35,675		34,616		3.1			34,797		33,151		5.0
International (US$)		49,636		49,872		(0.5	)		51,227		50,840		0.8
Operating costs per utilization day:
U.S. (US$)		21,698		21,039		3.1			22,009		20,401		7.9
Canada (Cdn$)		21,116		19,191		10.0			20,424		19,225		6.2

Service rig fleet		170		183		(7.1	)		170		183		(7.1	)
Service rig operating hours		59,834		56,683		5.6			254,224		201,627		26.1

Drilling Activity

	Average for the quarter ended 2023								Average for the quarter ended 2024
	Mar. 31		June 30		Sept. 30		Dec. 31			Mar. 31		June 30		Sept. 30		Dec. 31
Average Precision active rig count⁽¹⁾:
U.S.		60		51		41		45			38		36		35		34
Canada		69		42		57		64			73		49		72		65
International		5		5		6		8			8		8		8		8
Total		134		98		104		117			119		93		115		107

^{(1) Average number of drilling rigs working or moving.}

Financial Position

(Stated in thousands of Canadian dollars, except ratios)	December 31, 2024		December 31, 2023⁽²⁾
Working capital⁽¹⁾		162,592		136,872
Cash		73,771		54,182
Long-term debt		812,469		914,830
Total long-term financial liabilities⁽¹⁾		888,173		995,849
Total assets		2,956,315		3,019,035
Long-term debt to long-term debt plus equity ratio ⁽¹⁾		0.33		0.37

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}^{(2) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”}

Summary for the three months ended December 31, 2024:

Revenue decreased to $468 million compared with $507 million in the fourth quarter of 2023 as a result of lower U.S. activity and day rates, partially offset by higher Canadian and international activity.
Adjusted EBITDA was $121 million in the quarter and included $15 million of share-based compensation charges, $4 million for rig reactivation costs and $4 million of non-recurring charges. In 2023, fourth quarter Adjusted EBITDA was $151 million and included share-based compensation of $13 million. Please refer to “Other Items” later in this news release for additional information on share-based compensation charges.
Adjusted EBITDA as a percentage of revenue was 26% as compared with 30% in 2023.
Net earnings attributable to shareholders was $15 million compared to $147 million in the same quarter last year as net earnings in 2023 included an income tax recovery of $69 million and a gain on acquisition of $26 million.
Generated cash provided by operations of $163 million, reduced debt by $25 million through the partial redemption of our 2026 unsecured senior notes and repayment of our U.S. Real Estate Credit Facility, repurchased $25 million of common shares under our Normal Course Issuer Bid (NCIB), and ended the quarter with $74 million of cash and more than $575 million of available liquidity.
U.S. revenue per utilization day, excluding the impact of idle but contracted rigs was US$30,813 compared with US$32,819 in 2023, a decrease of 6%. Sequentially, revenue per utilization day, excluding idle but contracted rigs, was down 6% compared with the third quarter of 2024. Fourth quarter U.S. revenue per utilization day was US$30,991 compared with US$34,452 in 2023. The decrease was primarily the result of lower fleet average day rates, idle but contracted rig revenue and recoverable costs. We recognized US$1 million of revenue from idle but contracted rigs in the quarter as compared with US$7 million in 2023.
U.S. operating costs per utilization day increased to US$21,698 compared with US$21,039 in 2023. The increase was mainly due to higher rig operating costs and fixed costs spread over lower activity, offset by lower recoverable costs and repairs and maintenance. Sequentially, operating costs per utilization day were down 2% due to lower recoverable costs.
Canadian revenue per utilization day was $35,675, an increase from the $34,616 realized in 2023 due to higher average day rates and recoverable costs. Sequentially, revenue per utilization day increased $3,350 due to higher boiler revenue and higher fleet-wide average day rates.
Canadian operating costs per utilization day increased to $21,116, compared with $19,191 in 2023, resulting from higher repairs and maintenance, rig reactivation costs and impact of labour rate increases. Sequentially, daily operating costs increased $1,668 and were the result of higher labour expenses due to rate increases, recoverable expenses and repairs and maintenance.
Internationally, fourth quarter revenue increased 6% from 2023 as we realized revenue of US$37 million versus US$35 million in the prior year. Our higher revenue was primarily the result of a 6% increase in activity, which was negatively impacted by a planned rig recertification accounting for 21 non-billable utilization days in October. International revenue per utilization day was US$49,636 compared with US$49,872 in 2023.
Completion and Production Services revenue was $69 million, an increase of $6 million from 2023, as our fourth quarter service rig operating hours increased 6%, reflecting the successful integration of the CWC acquisition in November 2023.
General and administrative expenses were $35 million as compared with $39 million in 2023 primarily due to lower non-recurring costs associated with our CWC acquisition in 2023, partially offset by higher share-based compensation charges.
Net finance charges were $16 million, a decrease of $3 million compared with 2023 as a result of lower interest expense on our outstanding debt balance.
Capital expenditures were $59 million compared with $79 million in 2023 and by spend category included $22 million for expansion and upgrades and $37 million for the maintenance of existing assets, infrastructure, and intangible assets.
Income tax expense for the quarter was $6 million as compared with a recovery of $69 million in 2023. During the fourth quarter, we continue to not recognize deferred tax assets on certain international operating losses.

Summary for the year ended December 31, 2024:

Revenue for the year was $1,902 million, comparable with 2023.
Adjusted EBITDA was $521 million as compared with $611 million in 2023. Our lower Adjusted EBITDA was primarily attributed to decreased U.S. drilling results and $13 million of higher share-based compensation, partially offset by the strengthening of Canadian and international results.
Net earnings attributable to shareholders was $111 million compared to $289 million in the prior year. Our lower current year net earnings was due to the impact of decreased U.S. drilling results, higher income tax expense of $67 million and the gain on acquisition of $26 million recognized in 2023.
Cash provided by operations was $482 million as compared with $501 million in 2023. Funds provided by operations were $463 million, a decrease of $70 million from the comparative period.
General and administrative costs were $132 million, an increase of $10 million from 2023 primarily due to higher share-based compensation charges.
Net finance charges were $70 million, $14 million lower than 2023 due to our lower interest expense on our outstanding debt balance.
Capital expenditures were $217 million in 2024, a decrease of $10 million from 2023. Capital spending by spend category included $52 million for expansion and upgrades and $165 million for the maintenance of existing assets, infrastructure, and intangible assets.
Reduced debt by $176 million from the partial redemption of our 2026 unsecured senior notes and repayment of our Canadian and U.S. Real Estate Credit Facilities.
Repurchased $75 million of common shares under our NCIB.

STRATEGY

Precision’s vision is to be globally recognized as the High Performance, High Value provider of land drilling services. We work toward this vision by defining and measuring our results against strategic priorities that we establish at the beginning of every year.

Below we summarize the results of our 2024 strategic priorities:

Concentrate organizational efforts on leveraging our scale and generating free cash flow.
- Generated cash provided from operations of $482 million, allowing us to meet our debt reduction and share repurchase goals and build our cash balance by $20 million.
- Increased utilization of our Super Single and tele double rigs, driving Canadian drilling activity up 12% over 2023.
- Successfully integrated our 2023 CWC acquisition, increasing Completion and Production Services operating hours and Adjusted EBITDA 26% and 30%, respectively, year over year. Achieved our $20 million annual synergies target from the acquisition.
- Internationally, increased our activity 37% year over year and realized US$150 million of contract drilling revenue compared to US$108 million in 2023.
Reduce debt by between $150 million and $200 million and allocate 25% to 35% of free cash flow before debt repayments for share repurchases.
- Reduced debt by $176 million and ended the year with a Net Debt to Adjusted EBITDA ratio of approximately 1.4 times. On track to achieve a sustained Net Debt to Adjusted EBITDA ratio of below 1.0 times.
- Returned $75 million to shareholders through share repurchases, achieving the midpoint of our target range.
- Renewed our NCIB in September, allowing repurchases of up to 10% of the public float.
Continue to deliver operational excellence in drilling and service rig operations to strengthen our competitive position and extend market penetration of our Alpha^TMand EverGreen^TMproducts.
- Increased our Canadian drilling rig utilization days and well service rig operating hours year over year, maintaining our position as the leading provider of high-quality and reliable services in Canada.
- Invested $52 million in expansion and upgrade capital to enhance our drilling rigs.
- Nearly doubled our EverGreen^TM revenue year over year.
- Continued to expand our EverGreen^TM product offering on our Super Single rigs with LED mast lighting and hydrogen injection systems.

2025 Strategic Priorities

Maximize free cash flow through disciplined capital deployment and strict cost management.

Enhance shareholder returns through debt reduction and share repurchases.

Reduce debt by at least $100 million in 2025 and debt by $700 million between 2022 and 2027, while remaining committed to achieving a sustained Net Debt to Adjusted EBITDA ratio of below 1.0 times.
Allocate 35% to 45% of free cash flow, before debt repayments, directly to shareholders and continue moving direct shareholder capital returns toward 50% of free cash flow thereafter.
Grow revenue in existing service lines through contracted upgrades, optimized pricing and utilization, and opportunistic consolidating tuck-in acquisitions.

OUTLOOK

The long-term outlook for global energy demand remains positive with rising demand for all types of energy including oil and natural gas driven by economic growth, increasing demand from third-world regions, and emerging energy sources of power demand. Oil prices are constructive as OPEC+ continues to honour its production quotas, producers remain committed to returning capital to shareholders versus increasing production, and geopolitical issues continue to threaten supply. In Canada, the Trans Mountain pipeline expansion, which became operational in May of 2024, combined with the imminent startup of LNG Canada are projected to provide significant tidewater access for Canadian crude oil and natural gas, supporting additional Canadian drilling activity. In the U.S., the next wave of Liquefied Natural Gas (LNG) export terminals is expected to add approximately 11 bcf/d of export capacity from 2025 to 2028, supporting additional U.S. natural gas drilling activity. Coal retirements and a build-out of artificial intelligence data centers could provide further support for natural gas drilling.

Our Canadian drilling activity continues to be robust in 2025 and we currently have 81 rigs operating and expect this activity level to continue until spring breakup. Our Super Single fleet is near full utilization as heavy oil customers are benefiting from improved commodity pricing and a weak Canadian dollar. Our Super Triple fleet, the preferred rig for Montney drilling, is also nearly fully utilized, and with the expected startup of LNG Canada in mid-2025, rig demand could exceed supply. Overall, we expect our Canadian drilling activity to be up year over year with near full utilization of our Super Series rigs, which should support day rates and increase demand for term contracts as customers secure rigs to ensure fulfillment of their development programs. The uncertainty introduced by potential U.S. tariffs on Canadian oil and gas exports, has been tempered and we have not experienced any change in customer demand or their longer-term plans.

In the U.S., we currently have 34 rigs earning revenue, which has been relatively consistent since mid-2024. Drilling activity growth remains constrained as producers continue to focus on shareholder returns rather than growth, while volatile commodity prices, customer consolidation, and drilling and completion efficiencies have restricted activity growth. If commodity prices remain stable and around today’s level, we expect drilling demand to begin to improve in the second half and gain momentum through the remainder of 2025 as new LNG export capacity is added and customers seek to maintain or possibly increase production levels.

Internationally, we have eight rigs working on term contracts, five in Kuwait and three in the Kingdom of Saudi Arabia. The majority of these rigs are under five-year term contracts that extend into 2027 and 2028, providing predictable cash flow for the next few years. We continue to bid our remaining idle rigs within the region and remain optimistic in our ability to secure rig reactivations.

As the premier well service provider in Canada, the outlook for this business remains positive. We expect the Trans Mountain pipeline expansion and LNG Canada to drive more service-related activity, while increased regulatory spending requirements are expected to result in more abandonment work. Customer demand should remain strong, and with continued labour constraints, we expect firm pricing into the foreseeable future.

Contracts

The following chart outlines the average number of drilling rigs under term contract by quarter as at February 12, 2025. For those quarters ending after December 31, 2024, this chart represents the minimum number of term contracts from which we will earn revenue. We expect the actual number of contracted rigs to vary in future periods as we sign additional term contracts.

As at February 12, 2025	Average for the quarter ended 2024								Average		Average for the quarter ended 2025								Average
	Mar. 31		June 30		Sept. 30		Dec. 31		2024		Mar. 31		June 30		Sept. 30		Dec. 31		2025
Average rigs under term contract:
U.S.		20		17		17		16		18		15		13		8		6		11
Canada		24		22		23		23		23		20		19		18		14		18
International		8		8		8		8		8		8		8		7		7		8
Total		52		47		48		47		49		43		40		33		27		37

SEGMENTED FINANCIAL RESULTS

Precision’s operations are reported in two segments: Contract Drilling Services, which includes our drilling rig, oilfield supply and manufacturing divisions; and Completion and Production Services, which includes our service rig, rental and camp and catering divisions.

	For the three months ended December 31,									For the year ended December 31,
(Stated in thousands of Canadian dollars)		2024		2023			% Change				2024		2023			% Change
Revenue:
Contract Drilling Services		402,610			446,503			(9.8	)		1,617,735			1,704,265			(5.1	)
Completion and Production Services		68,830			62,459			10.2			294,817			240,716			22.5
Inter-segment eliminations		(3,269	)		(2,091	)		56.3			(10,224	)		(7,127	)		43.5
		468,171			506,871			(7.6	)		1,902,328			1,937,854			(1.8	)
Adjusted EBITDA:⁽¹⁾
Contract Drilling Services		125,683			162,459			(22.6	)		532,345			630,761			(15.6	)
Completion and Production Services		15,895			12,193			30.4			66,681			51,224			30.2
Corporate and Other		(21,052	)		(23,421	)		(10.1	)		(77,805	)		(70,867	)		9.8
		120,526			151,231			(20.3	)		521,221			611,118			(14.7	)

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

SEGMENT REVIEW OF CONTRACT DRILLING SERVICES

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2024		2023		% Change				2024		2023		% Change
Revenue		402,610		446,503			(9.8	)		1,617,735		1,704,265			(5.1	)
Expenses:
Operating		264,858		270,303			(2.0	)		1,041,068		1,030,053			1.1
General and administrative		12,069		13,741			(12.2	)		44,322		43,451			2.0
Adjusted EBITDA⁽¹⁾		125,683		162,459			(22.6	)		532,345		630,761			(15.6	)
Adjusted EBITDA as a percentage of revenue⁽¹⁾		31.2	%	36.4	%					32.9	%	37.0	%

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

United States onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		38		602		60		744
June 30		36		583		51		700
September 30		35		565		41		631
December 31		34		569		45		603
Year to date average		36		580		49		670

^{(1) United States lower 48 operations only.}
^{(2) Baker Hughes rig counts.}

Canadian onshore drilling statistics:⁽¹⁾	2024				2023
	Precision		Industry⁽²⁾		Precision		Industry⁽²⁾
Average number of active land rigs for quarters ended:
March 31		73		208		69		221
June 30		49		134		42		117
September 30		72		207		57		188
December 31		65		194		64		181
Year to date average		65		186		58		177

^{(1) Canadian operations only.}
^{(2) Baker Hughes rig counts.}

SEGMENT REVIEW OF COMPLETION AND PRODUCTION SERVICES

	For the three months ended December 31,								For the year ended December 31,
(Stated in thousands of Canadian dollars, except where noted)		2024		2023		% Change				2024		2023		% Change
Revenue		68,830		62,459			10.2			294,817		240,716			22.5
Expenses:
Operating		50,714		48,297			5.0			217,842		181,622			19.9
General and administrative		2,221		1,969			12.8			10,294		7,870			30.8
Adjusted EBITDA⁽¹⁾		15,895		12,193			30.4			66,681		51,224			30.2
Adjusted EBITDA as a percentage of revenue⁽¹⁾		23.1	%	19.5	%					22.6	%	21.3	%
Well servicing statistics:
Number of service rigs (end of period)		170		183			(7.1	)		170		183			(7.1	)
Service rig operating hours		59,834		56,683			5.6			254,224		201,627			26.1
Service rig operating hour utilization		38	%	38	%					42	%	42	%

^{(1) See “FINANCIAL MEASURES AND RATIOS.”}

OTHER ITEMS

Share-based Incentive Compensation Plans

We have several cash and equity-settled share-based incentive plans for non-management directors, officers, and other eligible employees. Our accounting policies for each share-based incentive plan can be found in our 2023 Annual Report.

A summary of expense amounts under these plans during the reporting periods are as follows:

For the three months ended
December 31,

For the year ended
December 31,

(Stated in thousands of Canadian dollars)

2024

2023

2024

2023

Cash settled share-based incentive plans

14,018

11,972

42,828

32,063

Equity settled share-based incentive plans

1,071

697

4,588

2,531

Total share-based incentive compensation plan expense

15,089

12,669

47,416

34,594

Allocated:

Operating

3,709

2,765

11,868

9,497

General and Administrative

11,380

9,904

35,548

25,097

15,089

12,669

47,416

34,594

FINANCIAL MEASURES AND RATIOS

Non-GAAP Financial Measures

We reference certain Non-Generally Accepted Accounting Principles (Non-GAAP) measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

Adjusted EBITDA

We believe Adjusted EBITDA (earnings before income taxes, gain on acquisition, loss on investments and other assets, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals and depreciation and amortization), as reported in our Condensed Interim Consolidated Statements of Net Earnings and our reportable operating segment disclosures, is a useful measure because it gives an indication of the results from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

The most directly comparable financial measure is net earnings.

	For the three months ended December 31,					For the year ended December 31,
(Stated in thousands of Canadian dollars)		2024		2023			2024		2023
Adjusted EBITDA by segment:
Contract Drilling Services		125,683		162,459			532,345		630,761
Completion and Production Services		15,895		12,193			66,681		51,224
Corporate and Other		(21,052	)	(23,421	)		(77,805	)	(70,867	)
Adjusted EBITDA		120,526		151,231			521,221		611,118
Depreciation and amortization		82,210		78,734			309,314		297,557
Gain on asset disposals		(1,913	)	(8,883	)		(16,148	)	(24,469	)
Loss on asset decommissioning		—		9,592			—		9,592
Foreign exchange		1,487		(773	)		2,259		(1,667	)
Finance charges		16,281		19,468			69,753		83,414
Gain on repurchase of unsecured notes		—		—			—		(137	)
Loss on investments and other assets		1,814		735			1,484		6,810
Gain on acquisition		—		(25,761	)		—		(25,761	)
Incomes taxes		5,717		(68,603	)		43,229		(23,465	)
Net earnings		14,930		146,722			111,330		289,244
Non-controlling interests		135		—			135		—
Net earnings attributable to shareholders		14,795		146,722			111,195		289,244


*Funds Provided by (Used in) Operations*	We believe funds provided by (used in) operations, as reported in our Condensed Interim Consolidated Statements of Cash Flows, is a useful measure because it provides an indication of the funds our principal business activities generate prior to consideration of working capital changes, which is primarily made up of highly liquid balances. The most directly comparable financial measure is cash provided by (used in) operations.

*Net Capital Spending*	We believe net capital spending is a useful measure as it provides an indication of our primary investment activities. The most directly comparable financial measure is cash provided by (used in) investing activities. Net capital spending is calculated as follows:
		For the three months ended December 31,					For the year ended December 31,
(Stated in thousands of Canadian dollars)			2024		2023			2024		2023
Capital spending by spend category
Expansion and upgrade			21,565		24,459			52,066		63,898
Maintenance, infrastructure and intangibles			37,335		54,388			164,632		162,851
			58,900		78,847			216,698		226,749
Proceeds on sale of property, plant and equipment			(8,570	)	(3,117	)		(30,395	)	(23,841	)
Net capital spending			50,330		75,730			186,303		202,908
Business acquisitions			—		646			—		28,646
Proceeds from sale of investments and other assets			—		—			(3,623	)	(10,013	)
Purchase of investments and other assets			718		61			725		5,343
Receipt of finance lease payments			(208	)	(191	)		(799	)	(255	)
Changes in non-cash working capital balances			11,114		(18,619	)		20,380		(11,845	)
Cash used in investing activities			61,954		57,627			202,986		214,784

Working Capital

We define working capital as current assets less current liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Working capital is calculated as follows:

	December 31,		December 31,
(Stated in thousands of Canadian dollars)		2024		2023
Current assets		501,284		510,881
Current liabilities		338,692		374,009
Working capital		162,592		136,872

Total Long-term Financial Liabilities

We define total long-term financial liabilities as total non-current liabilities less deferred tax liabilities, as reported in our Condensed Interim Consolidated Statements of Financial Position.

Total long-term financial liabilities is calculated as follows:

	December 31,		December 31,
(Stated in thousands of Canadian dollars)		2024		2023
Total non-current liabilities		935,624		1,069,364
Deferred tax liabilities		47,451		73,515
Total long-term financial liabilities		888,173		995,849

Non-GAAP Ratios
We reference certain additional Non-GAAP ratios that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Adjusted EBITDA % of Revenue*			We believe Adjusted EBITDA as a percentage of consolidated revenue, as reported in our Condensed Interim Consolidated Statements of Net Earnings, provides an indication of our profitability from our principal business activities prior to consideration of how our activities are financed and the impact of foreign exchange, taxation and depreciation and amortization charges.

*Long-term debt to long-term debt plus equity*			We believe that long-term debt (as reported in our Condensed Interim Consolidated Statements of Financial Position) to long-term debt plus equity (total shareholders’ equity as reported in our Condensed Interim Consolidated Statements of Financial Position) provides an indication of our debt leverage.

*Net Debt to Adjusted EBITDA*			We believe that the Net Debt (long-term debt less cash, as reported in our Condensed Interim Consolidated Statements of Financial Position) to Adjusted EBITDA ratio provides an indication of the number of years it would take for us to repay our debt obligations.

Supplementary Financial Measures
We reference certain supplementary financial measures that are not defined terms under IFRS to assess performance because we believe they provide useful supplemental information to investors.

*Capital Spending by Spend Category*			We provide additional disclosure to better depict the nature of our capital spending. Our capital spending is categorized as expansion and upgrade, maintenance and infrastructure, or intangibles.

CHANGE IN ACCOUNTING POLICY

Precision adopted Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants – Amendments to IAS 1, as issued in 2020 and 2022. These amendments apply retrospectively for annual reporting periods beginning on or after January 1, 2024 and clarify requirements for determining whether a liability should be classified as current or non-current. Due to this change in accounting policy, there was a retrospective impact on the comparative Statement of Financial Position pertaining to the Corporation’s Deferred Share Unit (DSU) plan for non-management directors which are redeemable in cash or for an equal number of common shares upon the director’s retirement. In the case of a director retiring, the director’s respective DSU liability would become payable and the Corporation would not have the right to defer settlement of the liability for at least twelve months. As such, the liability is impacted by the revised policy. The following changes were made to the Statement of Financial Position:

As at January 1, 2023, accounts payable and accrued liabilities increased by $12 million and non-current share-based compensation liability decreased by $12 million.
As at December 31, 2023, accounts payable and accrued liabilities increased by $8 million and non-current share-based compensation liability decreased by $8 million.

The Corporation’s other liabilities were not impacted by the amendments. The change in accounting policy will also be reflected in the Corporation’s consolidated financial statements as at and for the year ending December 31, 2024.

PARTNERSHIP

On September 26, 2024, Precision formed a strategic Partnership with two Indigenous partners to provide well servicing operations in northeast British Columbia. Precision contributed $4 million in assets to the Partnership. Profit attributable to Non-Controlling Interests (NCI) was $0.1 million in 2024.

Precision holds a controlling interest in the Partnership and the portions of the net earnings and equity not attributable to Precision’s controlling interest are shown separately as NCI in the Consolidated Statements of Net Earnings and Consolidated Statements of Financial Position.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements contained in this release, including statements that contain words such as “could”, “should”, “can”, “anticipate”, “estimate”, “intend”, “plan”, “expect”, “believe”, “will”, “may”, “continue”, “project”, “potential” and similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information and statements”).

In particular, forward-looking information and statements include, but are not limited to, the following:

our strategic priorities for 2025;
our capital expenditures, free cash flow allocation and debt reduction plans for 2025 through to 2027;
anticipated activity levels, demand for our drilling rigs, day rates and daily operating margins in 2025;
the average number of term contracts in place for 2025;
customer adoption of Alpha^TM technologies and EverGreen^TM suite of environmental solutions;
timing and amount of synergies realized from acquired drilling and well servicing assets; and
potential commercial opportunities and rig contract renewals.

These forward-looking information and statements are based on certain assumptions and analysis made by Precision in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. These include, among other things:

our ability to react to customer spending plans as a result of changes in oil and natural gas prices;
the status of current negotiations with our customers and vendors;
customer focus on safety performance;
existing term contracts are neither renewed nor terminated prematurely;
our ability to deliver rigs to customers on a timely basis;
the impact of an increase/decrease in capital spending; and
the general stability of the economic and political environments in the jurisdictions where we operate.

Undue reliance should not be placed on forward-looking information and statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to:

volatility in the price and demand for oil and natural gas;
fluctuations in the level of oil and natural gas exploration and development activities;
fluctuations in the demand for contract drilling, well servicing and ancillary oilfield services;
our customers’ inability to obtain adequate credit or financing to support their drilling and production activity;
changes in drilling and well servicing technology, which could reduce demand for certain rigs or put us at a competitive advantage;
shortages, delays and interruptions in the delivery of equipment supplies and other key inputs;
liquidity of the capital markets to fund customer drilling programs;
availability of cash flow, debt and equity sources to fund our capital and operating requirements, as needed;
the impact of weather and seasonal conditions on operations and facilities;
competitive operating risks inherent in contract drilling, well servicing and ancillary oilfield services;
ability to improve our rig technology to improve drilling efficiency;
general economic, market or business conditions;
the availability of qualified personnel and management;
a decline in our safety performance which could result in lower demand for our services;
changes in laws or regulations, including changes in environmental laws and regulations such as increased regulation of hydraulic fracturing or restrictions on the burning of fossil fuels and greenhouse gas emissions, which could have an adverse impact on the demand for oil and natural gas;
terrorism, social, civil and political unrest in the foreign jurisdictions where we operate;
fluctuations in foreign exchange, interest rates and tax rates; and
other unforeseen conditions which could impact the use of services supplied by Precision and Precision’s ability to respond to such conditions.

Readers are cautioned that the forgoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect our business, operations or financial results are included in reports on file with applicable securities regulatory authorities, including but not limited to Precision’s Annual Information Form for the year ended December 31, 2023, which may be accessed on Precision’s SEDAR+ profile at www.sedarplus.ca or under Precision’s EDGAR profile at www.sec.gov. The forward-looking information and statements contained in this release are made as of the date hereof and Precision undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by law.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(Stated in thousands of Canadian dollars)	December 31, 2024			December 31, 2023⁽¹⁾			January 1, 2023⁽¹⁾
ASSETS
Current assets:
Cash	$	73,771		$	54,182		$	21,587
Accounts receivable		378,712			421,427			413,925
Inventory		43,300			35,272			35,158
Assets held for sale		5,501			—			—
Total current assets		501,284			510,881			470,670
Non-current assets:
Income tax recoverable		—			682			1,602
Deferred tax assets		6,559			73,662			455
Property, plant and equipment		2,356,173			2,338,088			2,303,338
Intangibles		12,997			17,310			19,575
Right-of-use assets		66,032			63,438			60,032
Finance lease receivables		4,806			5,003			—
Investments and other assets		8,464			9,971			20,451
Total non-current assets		2,455,031			2,508,154			2,405,453
Total assets	$	2,956,315		$	3,019,035		$	2,876,123

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	314,355		$	350,749		$	404,350
Income taxes payable		3,778			3,026			2,991
Current portion of lease obligations		20,559			17,386			12,698
Current portion of long-term debt		—			2,848			2,287
Total current liabilities		338,692			374,009			422,326

Non-current liabilities:
Share-based compensation		13,666			16,755			47,836
Provisions and other		7,472			7,140			7,538
Lease obligations		54,566			57,124			52,978
Long-term debt		812,469			914,830			1,085,970
Deferred tax liabilities		47,451			73,515			28,946
Total non-current liabilities		935,624			1,069,364			1,223,268
Equity:
Shareholders’ capital		2,301,729			2,365,129			2,299,533
Contributed surplus		77,557			75,086			72,555
Deficit		(900,834	)		(1,012,029	)		(1,301,273	)
Accumulated other comprehensive income		199,020			147,476			159,714
Total equity attributable to shareholders		1,677,472			1,575,662			1,230,529
Non-controlling interest		4,527			—			—
Total equity		1,681,999			1,575,662			1,230,529
Total liabilities and equity	$	2,956,315		$	3,019,035		$	2,876,123

^{(1) Comparative period figures were restated due to a change in accounting policy. See “CHANGE IN ACCOUNTING POLICY.”}

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF NET EARNINGS (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars, except per share amounts)	2024			2023			2024			2023


Revenue	$	468,171		$	506,871		$	1,902,328		$	1,937,854
Expenses:
Operating		312,303			316,509			1,248,686			1,204,548
General and administrative		35,342			39,131			132,421			122,188
Earnings before income taxes, loss on investments and other assets, gain on acquisition, gain on repurchase of unsecured senior notes, finance charges, foreign exchange, loss on asset decommissioning, gain on asset disposals, and depreciation and amortization		120,526			151,231			521,221			611,118
Depreciation and amortization		82,210			78,734			309,314			297,557
Gain on asset disposals		(1,913	)		(8,883	)		(16,148	)		(24,469	)
Loss on asset decommissioning		—			9,592			—			9,592
Foreign exchange		1,487			(773	)		2,259			(1,667	)
Finance charges		16,281			19,468			69,753			83,414
Gain on repurchase of unsecured senior notes		—			—			—			(137	)
Gain on acquisition		—			(25,761	)		—			(25,761	)
Loss on investments and other assets		1,814			735			1,484			6,810
Earnings before income taxes		20,647			78,119			154,559			265,779
Income taxes:
Current		2,811			486			7,470			4,494
Deferred		2,906			(69,089	)		35,759			(27,959	)
		5,717			(68,603	)		43,229			(23,465	)
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Attributable to:
Shareholders of Precision Drilling Corporation	$	14,795		$	146,722		$	111,195		$	289,244
Non-controlling interests	$	135		$	—		$	135		$	—
Net earnings per share attributable to shareholders:
Basic	$	1.06		$	10.42		$	7.81		$	21.03
Diluted	$	1.06		$	9.81		$	7.81		$	19.53

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Unrealized gain (loss) on translation of assets and liabilities of operations denominated in foreign currency		89,412			(36,755	)		119,821			(33,433	)
Foreign exchange gain (loss) on net investment hedge with U.S. denominated debt		(49,744	)		22,679			(69,027	)		21,195
Tax related to net investment hedge of long-term debt		750			—			750			—
Comprehensive income	$	55,348		$	132,646		$	162,874		$	277,006
Attributable to:
Shareholders of Precision Drilling Corporation	$	55,213		$	132,646		$	162,739		$	277,006
Non-controlling interests	$	135		$	—		$	135		$	—

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended December 31,						Year Ended December 31,
(Stated in thousands of Canadian dollars)	2024			2023			2024			2023
Cash provided by (used in):
Operations:
Net earnings	$	14,930		$	146,722		$	111,330		$	289,244
Adjustments for:
Long-term compensation plans		4,398			(2,541	)		18,888			6,659
Depreciation and amortization		82,210			78,734			309,314			297,557
Gain on asset disposals		(1,913	)		(8,883	)		(16,148	)		(24,469	)
Loss on asset decommissioning		—			9,592			—			9,592
Foreign exchange		1,477			(853	)		2,442			(866	)
Finance charges		16,281			19,468			69,753			83,414
Income taxes		5,717			(68,603	)		43,229			(23,465	)
Other		(392	)		(9	)		(272	)		(229	)
Loss on investments and other assets		1,814			735			1,484			6,810
Gain on acquisition		—			(25,761	)		—			(25,761	)
Gain on repurchase of unsecured senior notes		—			—			—			(137	)
Income taxes paid		(1,617	)		(708	)		(6,459	)		(3,103	)
Income taxes recovered		27			17			85			24
Interest paid		(2,806	)		(3,335	)		(72,241	)		(83,037	)
Interest received		409			614			1,967			1,176
Funds provided by operations		120,535			145,189			463,372			533,409
Changes in non-cash working capital balances		42,256			25,066			18,711			(32,838	)
Cash provided by operations		162,791			170,255			482,083			500,571

Investments:
Purchase of property, plant and equipment		(58,900	)		(78,582	)		(216,647	)		(224,960	)
Purchase of intangibles		—			(265	)		(51	)		(1,789	)
Proceeds on sale of property, plant and equipment		8,570			3,117			30,395			23,841
Proceeds from sale of investments and other assets		—			—			3,623			10,013
Business acquisitions		—			(646	)		—			(28,646	)
Purchase of investments and other assets		(718	)		(61	)		(725	)		(5,343	)
Receipt of finance lease payments		208			191			799			255
Changes in non-cash working capital balances		(11,114	)		18,619			(20,380	)		11,845
Cash used in investing activities		(61,954	)		(57,627	)		(202,986	)		(214,784	)

Financing:
Issuance of long-term debt		17,078			—			27,978			162,649
Repayments of long-term debt		(41,813	)		(86,699	)		(204,319	)		(375,237	)
Repurchase of share capital		(25,023	)		(17,004	)		(75,488	)		(29,955	)
Issuance of common shares from the exercise of options		—			—			686			—
Debt amendment fees		(46	)		—			(1,363	)		—
Lease payments		(3,266	)		(3,010	)		(13,271	)		(9,423	)
Funding from non-controlling interest		—			—			4,392			—
Cash used in financing activities		(53,070	)		(106,713	)		(261,385	)		(251,966	)
Effect of exchange rate changes on cash		1,700			(798	)		1,877			(1,226	)
Increase in cash		49,467			5,117			19,589			32,595
Cash, beginning of period		24,304			49,065			54,182			21,587
Cash, end of period	$	73,771		$	54,182		$	73,771		$	54,182

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus			Accumulated Other Comprehensive Income		Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2024	$	2,365,129		$	75,086		$	147,476	$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662
Net earnings for the period		—			—			—		111,195			111,195			135		111,330
Other comprehensive income for the period		—			—			51,544		—			51,544			—		51,544
Share options exercised		978			(292	)		—		—			686			—		686
Settlement of Executive Performance and Restricted Share Units		21,846			(1,479	)		—		—			20,367			—		20,367
Share repurchases		(86,570	)		—			—		—			(86,570	)		—		(86,570	)
Redemption of non-management directors share units		346			(346	)		—		—			—			—		—
Share-based compensation expense		—			4,588			—		—			4,588			—		4,588
Funding from non-controlling interest		—			—			—		—			—			4,392		4,392
Balance at December 31, 2024	$	2,301,729		$	77,557		$	199,020	$	(900,834	)	$	1,677,472		$	4,527	$	1,681,999

	Attributable to shareholders of the Corporation
(Stated in thousands of Canadian dollars)	Shareholders’ Capital			Contributed Surplus		Accumulated Other Comprehensive Income			Deficit			Total			Non- controlling interest		Total Equity
Balance at January 1, 2023	$	2,299,533		$	72,555	$	159,714		$	(1,301,273	)	$	1,230,529		$	—	$	1,230,529
Net earnings for the period		—			—		—			289,244			289,244			—		289,244
Other comprehensive income for the period		—			—		(12,238	)		—			(12,238	)		—		(12,238	)
Acquisition share consideration		75,588			—		—			—			75,588			—		75,588
Settlement of Executive Performance and Restricted Share Units		19,206			—		—			—			19,206			—		19,206
Share repurchases		(29,955	)		—		—			—			(29,955	)		—		(29,955	)
Redemption of non-management directors share units		757			—		—			—			757			—		757
Share-based compensation expense		—			2,531		—			—			2,531			—		2,531
Balance at December 31, 2023	$	2,365,129		$	75,086	$	147,476		$	(1,012,029	)	$	1,575,662		$	—	$	1,575,662

2024 FOURTH QUARTER AND YEAR-END RESULTS CONFERENCE CALL AND WEBCAST

Precision Drilling Corporation has scheduled a conference call and webcast to begin promptly at 11:00 a.m. MT (1:00 p.m. ET) on Thursday, February 13, 2025.

To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

https://register.vevent.com/register/BI9168b4c0516f4409ab4f297340994ebc

The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

https://edge.media-server.com/mmc/p/8hij84aa

About Precision

Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

Additional Information

For further information, please contact:

Lavonne Zdunich, CPA, CA
Vice President, Investor Relations
403.716.4500

800, 525 – 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
Website: www.precisiondrilling.com

The MIL Network –

February 13, 2025

MIL-OSI Russia: Government meeting (2025, No. 4)

Translartion. Region: Russians Fedetion –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

1. On the draft federal law “On Amendments to Article 19 of the Law of the Russian Federation “On the Status of Judges in the Russian Federation” and Article 1 of the Federal Law “On Social Guarantees and Compensations for Military Personnel Serving in Military Formations of the Russian Federation Stationed in the Territories of the Republic of Belarus, the Republic of Kazakhstan and the Kyrgyz Republic, as well as Persons Working in These Formations”

The bill is aimed at establishing a uniform level of social protection for judges of military courts stationed outside the territory of the Russian Federation.

2. On the draft federal law “On the creation of state information systems to combat offenses (crimes) committed using information and telecommunications technologies, and on amendments to certain legislative acts of the Russian Federation”

The bill is aimed at preventing, suppressing and increasing liability for illegal acts committed using information technologies.

3. On the draft federal law “On the ratification of the Protocol on Amendments to the Agreement between the Government of the Russian Federation and the Government of the People’s Republic of China on the facilitation of travel for citizens”

The bill aims to ratify the protocol signed in Moscow on August 21, 2024.

4. On the draft federal law “On Amendments to Articles 2463 and 427 of Part Two of the Tax Code of the Russian Federation”

The bill is aimed at eliminating the constraints affecting the investment attractiveness of the preferential regime created in the Kuril Islands in accordance with Federal Law No. 50-FZ of March 9, 2022 “On Amendments to Part Two of the Tax Code of the Russian Federation”.

5. On the draft federal law “On Amendments to Articles 247 and 2593 of Part One, Articles 689 and 700 of Part Two and Article 1137 of Part Three of the Civil Code of the Russian Federation”

The bill is aimed at amending parts one, two and three of the Civil Code of the Russian Federation in terms of displaying in the Unified State Register of Real Estate information on the existence of rights of third parties in relation to real estate objects that are not their owners.

6. On the allocation of budgetary allocations to the Ministry of Agriculture of Russia in 2025 from the reserve fund of the Government of the Russian Federation for the provision of one-time financial assistance in the form of a subsidy from the federal budget to the budget of the Kursk region

The draft order is aimed at improving the financial condition of agricultural producers in the Kursk region.

Moscow, February 12, 2025

The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

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

MIL OSI Russia News –

February 13, 2025
MIL-Evening Report: To achieve real growth, the NZ government needs to relax the rules around housing

Source: The Conversation (Au and NZ) – By James Graham, Senior Lecturer in Economics, University of Sydney

Ufuk Zivana/Shutterstock

Prime Minister Christopher Luxon wants New Zealand to “go for growth”.

But his plan, focused on reforming foreign investment, planning and competition laws, as well as boosting the tourism and mining sectors, is hampered by a fundamental reality of New Zealand’s economy: much of the country’s capital is tied up in unproductive (and expensive) housing.

While this issue is not new, with New Zealand’s economy once described as “a housing market with bits tacked on”, the solution may lie in making housing more readily available through deregulation and policy reform. This would free up capital for drivers of growth such as infrastructure and business investment.

Household capital allocation March, 2021. Data source: RBNZ Household Balance Sheet.
Author provided

The temptation of housing

Rapidly growing house prices over the past two decades have provided strong incentives to direct investment to the housing market.

On average, the price of a typical house has grown by around 8% per year, far outpacing household income growth. For example, in 2005 the median house price was roughly five times the average household income. By the middle of the pandemic house values had ballooned to nine times the average income.

Soaring prices have made residential investment extremely profitable for a long time. This means savings and investments have tended to flow into residential property rather than other productive sectors of the economy.

Constraints on housing supply

The problem is that in recent decades additional residential investment has not led to a substantial increase in new homes.

Local and central government rules and regulations have long hampered the construction of new houses. Instead, more investment in real estate has generally led to even higher prices.

As concerning as this is, it does not mean investments in housing have been misplaced. Rather, high prices and profits are what the market required in order to encourage those willing to build (few that there are) despite the costs, delays and uncertainties associated with bureaucratic battles with councils, planners and local NIMBY groups.

Banning property speculation might have kept prices down and reallocated investment to other productive uses. But in the absence of those speculators, the supply constraints would not have been any looser. Lower prices mean lower returns over building costs, leading to even fewer houses built.

Shifting capital out of the housing market in this way would not have benefited the country – we might have produced more and goods and services but fewer homes in which to live.

Christopher Luxon is pushing forward his plan for growth focused on reforming foreign investment, planning and competition laws, as well as boosting the tourism and mining sectors.
Hagen Hopkins/Getty Images

Reforming housing supply

Fortunately, New Zealand has made meaningful progress on housing supply recently. For example, Auckland and Lower Hutt changed zoning laws in the 2010s making it easier to build, and Wellington City has recently followed suit.

These changes have led to local construction booms and, crucially, lower house prices and rents.

More recently, central governments of both stripes introduced policies like the National Policy Statement on Urban Development, Medium Density Residential Standards, and housing growth targets for local councils.

These reforms make it easier to build, reduce house prices and mean less investment capital is required for each new house built. So these policies have the dual benefit of improving housing affordability and freeing up capital for other productive sectors of the economy.

As prices come down, New Zealanders will no longer need to pour nine times their income into a home.

That will free up funds for investments in new bridges and tunnels, small businesses, and exciting new startups that will help drive innovation and generate the long-run growth we seek.

New Zealand need not give up its housing dreams in order to get business moving. Rather, it can do both.

All that requires is for local and central government to continue to let people build the housing they want so that we can free up the capital our infrastructure and businesses need.

James Graham has received research funding from the Australian Housing and Urban Research Institute and is a member of Sydney YIMBY.

– ref. To achieve real growth, the NZ government needs to relax the rules around housing – https://theconversation.com/to-achieve-real-growth-the-nz-government-needs-to-relax-the-rules-around-housing-249000

MIL OSI Analysis – EveningReport.nz –

February 13, 2025

MIL-OSI: Municipality Finance Plc Financial Statements Bulletin 1 January–31 December 2024

Source: GlobeNewswire (MIL-OSI)

Municipality Finance Plc
Financial Statements Bulletin
12 February 2025 at 5:00 pm (EET)

Municipality Finance Plc Financial Statements Bulletin 1 January–31 December 2024

In brief: MuniFin Group in 2024

The Group’s net operating profit excluding unrealised fair value changes* increased by 2.9% (3.2%) in January–December and amounted to EUR 181 million (EUR 176 million). Net interest income* was at the same level as in year before and totalled EUR 260 million (EUR 259 million). Net operating profit excluding unrealised fair value changes was boosted by lower expenses and increased other income compared to the previous period.
Net operating profit* amounted to EUR 166 million (EUR 139 million). Unrealised fair value changes amounted to EUR -16 million (EUR -37 million) in the financial year. Unrealised fair value changes were influenced in particular by changes in interest rates and credit risk spreads in the Group’s main funding markets.
Costs* in the financial year amounted to EUR 81 million (EUR 82 million).
The Group’s leverage ratio remained at a strong level, standing at 12.3% (12.0%) at the end of December.
At the end of December, the Group’s CET1 capital ratio was very strong at 107.7% (103.4%). CET1 capital ratio was over seven times the required minimum of 15.0% (13.9%), taking capital buffers into account.
Long-term customer financing (long-term loans and leased assets) excluding unrealised fair value changes* totalled EUR 35,787 million (EUR 32,948 million) at the end of December and saw an increase of 8.6% (7.5%). New long-term customer financing* increased by 17.1% (0.0%) in January–December 2024 and amounted to EUR 5,056 million (EUR 4,319 million). Short-term customer financing* totalled EUR 1,825 million (EUR 1,575 million).
Of all long-term customer financing, the amount of green finance* aimed at environmentally sustainable investments totalled EUR 6,817 million (EUR 4,795 million), and the amount of social finance* aimed at investments promoting equality and communality totalled EUR 2,536 million (EUR 2,234 million) at the end of December. The total amount of this financing increased by 33.1% (41.0%) from the previous year. The ratio of green and social finance to long-term customer financing excluding unrealised fair value changes* grew by 4.8% percentage points to 26.1% (21.3%).
In 2024, new long-term funding* reached EUR 8,922 million (EUR 10,087 million). At the end of December, the total funding* was EUR 46,737 million (EUR 43,320 million), of which long-term funding* made up EUR 43,328 million (EUR 39,332 million).
The Group’s total liquidity* is very strong, standing at EUR 11,912 million (EUR 11,633 million) at the end of the financial year. The Liquidity Coverage Ratio (LCR) stood at 341% (409%) and the Net Stable Funding Ratio (NSFR) at 124% (124%) at the end of the year.
In early 2024, MuniFin reviewed the future and development potential of the consulting services offered by its subsidiary company Financial Advisory Services Inspira Plc (Inspira) and decided to discontinue Inspira’s consulting services in summer 2024.
The Board of Directors proposes to the Annual General Meeting to be held in spring 2025 a dividend of EUR 1.86 per share, totalling EUR 72.7 million. The total dividend payment in 2024 was EUR 1.69 per share, totalling EUR 66.0 million.
Outlook for 2025: The Group expects its net operating profit excluding unrealised fair value changes to be at the same level or lower in 2025 as in 2024. The Group expects its capital adequacy ratio and leverage ratio to remain strong. The valuation principles set in the IFRS framework may cause significant but temporary unrealised fair value changes, some of which increase the volatility of net operating profit and make it more difficult to estimate.

Comparison figures deriving from the income statement and figures describing the change during the financial year are based on figures reported for the corresponding period in 2023. Comparison figures deriving from the balance sheet and other cross-sectional items are based on the figures of 31 December 2023 unless otherwise stated.

* Alternative performance measure.

Key figures (Group)

	Jan–Dec 2024	Jan–Dec 2023	Change, %
Net operating profit excluding unrealised fair value changes (EUR million)*	181	176	2.9
Net operating profit (EUR million)*	166	139	19.5
Net interest income (EUR million)*	260	259	0.3
New long-term customer financing (EUR million)*	5,056	4,319	17.1
New long-term funding (EUR million)*	8,922	10,087	-11.6
Cost-to-income ratio, %*	27.7	32.2	-14.0**
Return on equity (ROE), %*	7.2	6.6	9.3**
	31 Dec 2024	31 Dec 2023	Change, %
Long-term customer financing (EUR million)*	35,173	32,022	9.8
Green and social finance (EUR million)*	9,353	7,029	33.1
Balance sheet total (EUR million)	53,092	49,736	6.7
CET1 capital (EUR million)	1,646	1,550	6.2
Tier 1 capital (EUR million)	1,646	1,550	6.2
Total own funds (EUR million)	1,646	1,550	6.2
CET1 capital ratio, %	107.7	103.4	4.2**
Tier 1 capital ratio, %	107.7	103.4	4.2**
Total capital ratio, %	107.7	103.4	4.2**
Leverage ratio, %	12.3	12.0	2.5**
Personnel	178	185	-3.8

* Alternative performance measure.
** Change in ratio.

Comment on the 2024 financial year by President and CEO Esa Kallio

The operating environment in global economy and international politics went through a whirlwind of changes in 2024. Even in the turmoil, Finland stood steady and secure: our society is built on long-standing practices and institutions that have been developed together and tried and tested over time. This stability also helps safeguard MuniFin’s strong performance through shifts in the operating environment. Finnish society must continue to operate in broad collaboration and develop the structures of society in the long term. Sometimes this requires difficult decisions in society in the short term.

In 2024, the demand for MuniFin’s financing was especially high in the affordable social housing sector. In the future, however, the sector will be facing reductions on interest subsidy loan authorisations.

The Finnish system for affordable social housing is a success story that has served as a model across Europe – and will hopefully continue to do so, especially now that the rising cost of living has led to a surge in homelessness in many countries. Our state-subsidised housing production system has proven effective in reducing homelessness and regional segregation, increasing the supply of affordable social housing in growth centres, advancing municipalities’ housing policy goals of ensuring a diverse housing structure, and providing high-quality housing also to students, senior citizens and people with disabilities.

Especially in the past couple of years, affordable housing production has also significantly supported the vitality of the Finnish construction sector, helping offset the slump in housing construction. Finland’s well-functioning system should not be changed; rather, the current model and level of housing production subsidies should be kept as they are. Timely investments into affordable social housing production can also help level out construction cycles and support employment.

In 2024, MuniFin reached new milestones in sustainable investments. In October, we issued our tenth green bond, the high demand of which was once again testament to our strong position as an international forerunner in the financial sector. Moreover, sustainable finance made up the majority of the new long-term customer financing we granted in 2024.

Information on the Group results

Consolidated income statement	Jan–Dec 2024	Jan–Dec 2023	Change, %	Jul–Dec 2024	Jul–Dec 2023	Change, %
(EUR million)
Net interest income	260	259	0.3	132	135	-2.4
Other income	2	0	>100	1	-1	>100
Income excluding unrealised fair value changes	262	259	1.1	132	134	-1.4
Commission expenses	-17	-16	8.2	-9	-8	11.2
HR expenses	-21	-20	2.0	-10	-10	-4.3
Other items in administrative expenses	-23	-20	12.4	-12	-11	12.0
Depreciation and impairment on tangible and intangible assets	-6	-7	-7.8	-3	-3	-14.3
Other operating expenses	-14	-19	-27.0	-7	-7	-0.6
Costs	-81	-82	-1.9	-40	-39	3.0
Credit loss and impairments on financial assets	0	-1	-72.9	-1	-1	-38.7
Net operating profit excluding unrealised fair value changes	181	176	2.9	92	95	-2.8
Unrealised fair value changes	-16	-37	-58.4	-31	-33	-3.6
Net operating profit	166	139	19.5	61	62	-2.4
Income tax expense	-33	-28	17.3	-12	-12	-2.3
Profit for the period	133	111	20.1	48	50	-2.4

The Group’s net operating profit excluding unrealised fair value changes

MuniFin Group’s core business operations remained strong in 2024. The Group’s net operating profit excluding unrealised fair value changes increased by 2.9% (3.2%) and amounted to EUR 181 million (EUR 176 million). The growth was influenced both by an increase in other income and a decrease in costs as net interest income remained at the level of previous year.

The Group’s income excluding unrealised fair value changes was EUR 262 million (EUR 259 million) and grew by 1.1% (6.5%). Net interest income grew by 0.3% (7.5%), totalling EUR 260 million (EUR 259 million). Net interest income was positively affected by growing business volumes. The increase in funding costs due to the market conditions and the shape of the yield curve slowed the growth of net interest income.

Other income totalled EUR 2.0 million (EUR 0.1 million). It consisted mainly of the billing of MuniFin’s digital services and the turnover of the subsidiary company Inspira from the early part of the year. In the previous year, negative realised FX rate changes reduced other income. At 0.8% (0.1%), other income relative to income excluding unrealised fair value changes forms only a minor part of the Group’s income.

The Group’s costs were EUR 81 million (EUR 82 million), down by 1.9% from the year before (+12.4%). The reduction in expenses was due to the fact that no contribution fee was collected for the Single Resolution Fund in 2024.

Commission expenses totalled EUR 17 million (EUR 16 million), of which EUR 14 million (EUR 13 million) consisted of the guarantee commission collected by the Municipal Guarantee Board for guaranteeing MuniFin’s funding.

HR and administrative expenses grew by 7.2% (9.0%) and reached EUR 44 million (EUR 41 million). HR expenses comprised EUR 21 million (EUR 20 million) and other administrative expenses EUR 23 million (EUR 20 million). The average number of employees in the Group was 187 (183) during the financial year. Other items in administrative expenses grew by 12.4% (8.8%), mainly due to the increased costs of maintaining and developing information systems.

During the financial year, depreciation and impairment of tangible and intangible assets totalled EUR 6 million (EUR 7 million).

Other operating expenses were EUR 14 million (EUR 19 million). The main reason for this decrease is that there was no contribution fee to the Single Resolution Fund in 2024. Other operating expenses excluding fees collected by authorities grew by 22.1% (9.9%) to EUR 11 million (EUR 9 million).

Credit loss and impairments on financial assets were EUR 0.3 million (EUR 1.2 million). This item consists of expected credit losses (ECL). The Group updated the model used to estimate the probability of default and the forward-looking macro scenarios during the financial year. The Group’s management has assessed the impact of general cost inflation and increased interest rates on customer financing receivables and credit risk and decided to release the additional discretionary provision in full at the end of 2024 (the amount of the additional discretionary provision was EUR 0.6 million at the end of 2023, and in June 2024, EUR 0.4 million of the additional provision was released). The update of the probability of default model increased expected credit losses by EUR 0.9 million euros, as the amount of exposures that moved from stage 1 to stage 2 increased. Most of the transferred exposures were subject to the previous additional discretionary provision. Therefore, the Group’s management considered that there is no longer a basis for recording a group-specific additional provision.

The Group’s overall credit risk position has remained low. The amount of forborne loans was EUR 561 million (EUR 497 million), while non-performing exposures amounted to EUR 292 million (EUR 142 million) at the end of the year. These non-performing exposures represented 0.8% (0.4%) of total customer exposures. At the end of December, the Group had EUR 13 million in receivables due to the insolvency of customers, for which the collateral realisation process is ongoing, or the credit receivable is due for payment by the guarantor (there were no such receivables at the end of 2023). All the Group’s customer financing receivables are from Finnish municipalities, joint municipal authorities, wellbeing services counties or joint county authorities, or accompanied by a securing municipal, joint municipal authority, wellbeing services county or joint county authority guarantee or a state deficiency guarantee supplementing real estate collateral, and therefore no final credit losses will arise. According to the management’s assessment, all receivables from customers will be fully recovered. During the Group’s history of 35 years, it has never recognised any final credit losses in its customer financing.

The credit risk of the Group’s liquidity portfolio has likewise remained at a low level, and the average credit rating of the debt securities in the portfolio is AA+ (AA+).

The Group’s profit and unrealised fair value changes

The Group’s net operating profit was EUR 166 million (EUR 139 million). Unrealised fair value changes decreased the Group’s net operating profit by EUR 16 million (in 2023: decreased by EUR 37 million). In January–December, unrealised fair value changes in hedge accounting amounted to EUR -12 million (EUR -27 million) and unrealised net result on financial assets and liabilities through profit or loss to EUR -4 million (EUR -10 million).

The Group’s effective tax rate in the financial year was 19.9% (20.2%). Taxes in the Consolidated income statement amounted to EUR 33 million (EUR 28 million). After taxes, the Group’s profit for the financial year was EUR 133 million (EUR 111 million).

The Group’s full-year return on equity (ROE) was 7.2% (6.6%). Excluding unrealised fair value changes, the ROE was 7.9% (8.4%).

The Group’s other comprehensive income includes unrealised fair value changes of EUR 169 million (EUR 109 million). During the financial year, the most significant item affecting the other comprehensive income was net change in fair value due to changes in own credit risk of financial liabilities designated at fair value through profit or loss totalling EUR 137 million (EUR 75 million). The cost-of-hedging amounted to EUR 30 million (EUR 25 million). Net change in fair value of financial assets at fair value through other comprehensive income was EUR 2 million (EUR 8 million).

On the whole, unrealised fair value changes net of deferred tax affected the Group’s equity by EUR 122 million (EUR 57 million) and CET1 capital net of deferred tax in capital adequacy by EUR 13 million (EUR -3 million). The cumulative effect of unrealised fair value changes on the Group’s own funds in capital adequacy calculations was EUR 58 million (EUR 45 million).

Unrealised fair value changes reflect the temporary impact of market conditions on the valuation levels of financial instruments at the time of reporting. The value changes may vary significantly from one reporting period to another, causing volatility in profit, equity and own funds in capital adequacy calculations. The effect on individual contracts will be removed by the end of the contract period. In the financial year, unrealised fair value changes were influenced in particular by changes in interest rates and credit risk spreads in the Group’s main funding markets.

In accordance with its risk management principles, the Group uses derivatives to financially hedge against interest rate, exchange rate and other market and price risks. Cash flows under agreements are hedged, but due to the generally used valuation methods, changes in fair value differ between the financial instrument and the respective hedging derivative. Changes in the shape of the interest rate curve and credit risk spreads in different currencies affect the valuations, which cause the fair values of hedged assets and liabilities and hedging instruments to behave in different ways. In practice, the changes in valuations are not realised on a cash basis because the Group holds financial instruments and their hedging derivatives almost always until the maturity date. The counterparty credit risk related to derivatives is comprehensively covered by collateral management. Changes in credit risk spreads are not expected to be materialised as credit losses for the Group, because the Group’s liquidity reserve has been invested in instruments with low credit risk.

The Parent Company and subsidiary company Inspira’s results

In 2024, MuniFin’s net interest income amounted to EUR 260 million (EUR 259 million) and net operating profit to EUR 166 million (EUR 139 million).

The turnover of MuniFin’s subsidiary company, Financial Advisory Services Inspira Ltd, was EUR 0.4 million (EUR 1.4 million), and its net operating result amounted to EUR -0.5 million (EUR 0.0 million). The Group discontinued Inspira’s advisory services in the spring. In the future, the subsidiary company will provide some of the digital added value services MuniFin offers to its customers.

The Group’s financial performance in July–December

In the second half of 2024, the Group’s net operating profit excluding unrealised fair value changes amounted to EUR 92 million (Jul–Dec 2023: EUR 95 million), remaining almost at the same level as in the year before. Net interest income totalled EUR 132 million (Jul–Dec 2023: EUR 135 million) and costs EUR 40 million (Jul–Dec 2023: EUR 39 million) in July–December. Unrealised fair value changes weakened the net operating profit by EUR 31 million (in the comparison period Jul–Dec 2023: weakened by EUR 33 million). The Group’s net operating profit amounted to EUR 61 million (Jul–Dec 2023: EUR 62 million) in July–December.

In the second half of the year, the Group’s net operating profit excluding unrealised fair value changes increased by 3.1% from the first half. Net interest income went up by 2.4% from the first half of the year. Costs amounted to EUR 40 million in July–December and to EUR 41 million in January–June. The Group’s net operating profit totalled EUR 61 million in July– December, decreasing by 42.4% from January–June. In the second half of the year, unrealised fair value changes affected the net operating profit by EUR -31 million, while in the first half of the year, their effect was EUR 16 million.

Outlook for 2025

Europe’s economy is starting 2025 off from a weaker position than anticipated. Business cycle expectations are subdued, and the global operating environment is fraught with uncertainty. Donald Trump’s presidential administration is expected to pursue protectionist trade policies, which could, at worst, severely slow down the euro area’s economic recovery.

However, if Europe is exempted from the planned universal tariff on all US imports and the euro continues to weaken, businesses in the euro area could even find new opportunities to expand their market share in the US. Europe could also suffer negative economic effects if capital needed to improve productivity is increasingly allocated to strengthening military defence and supply security. The political turmoil in France and Germany adds another layer of uncertainty into the euro area economy.

To counterbalance the growing economic uncertainty, the European Central Bank is expected to continue brisk interest rate cuts in 2025. Short-term market rates are projected to come down to about two per cent or even slightly below that by mid-year.

The sharp interest rate cuts will be the most crucial booster for the Finnish economy in 2025. Although the overall tone of the economic turnround is still relatively subdued, the simultaneous recovery of demand drivers could boost annual GDP growth to surprisingly strong figures. Even so, macroeconomic forecasts continue to be very uncertain. Finland’s two most important export markets, the US and Germany, both entail considerable risks, and a sharperthan-expected decline in employment casts a shadow over the recovery of the domestic market. From the Group’s perspective, the 2024 rise in credit risk spreads is expected to push up the cost of funding, weakening the Group’s net interest income in 2025.

Municipalities are undergoing sizeable adjustment programmes, but their financing deficit is nevertheless expected to grow again in 2025. Municipal finances are strained by several factors: central government transfer cuts resulting from the balancing of health and social services reform transfers, increased net investments, health and social services facilities that are left unused by wellbeing services counties but continue to incur maintenance, conversion and demolition costs, as well as uncertainty surrounding the actual costs of the employment services reform. In addition, the weakened employment outlook poses a serious risk to tax revenues.

Privately funded housing production is expected to take an upward turn in 2025, but its volume will nevertheless remain well below normal levels. The housing market is starting to gradually pick up, and housing prices are expected to start rising moderately from 2025 onwards. In contrast, state-subsidised housing production will see fewer building starts due to reductions on interest subsidy loan authorisations. In March 2025, the Housing Finance and Development Centre of Finland (Ara) will cease to operate as an independent government agency and its operations will instead be integrated under the Ministry of the Environment. This change does not mean the end of state-subsidised housing production; rather, it aims to improve the administration of affordable social housing production. According to MuniFin’s analysis, the integration will not have a direct effect on MuniFin’s business. Interest subsidy loans will continue to be granted to state-subsidised housing production, but the related processes will be administered at the Ministry of the Environment. MuniFin will monitor the practical implications closely. With the managing authority changing, the Company may need to make changes to some of its processes in response.

Considering the above-mentioned circumstances, the Group expects its net operating profit excluding unrealised fair value changes to be at the same level or lower in 2025 as in 2024. The Group expects its capital adequacy ratio and leverage ratio to remain strong. The valuation principles set in the IFRS framework may cause significant but temporary unrealised fair value changes, some of which increase the volatility of net operating profit and make it more difficult to estimate.

These estimates are based on a current assessment of the development of MuniFin Group’s operations and the operating environment.

Municipality Finance Plc

Further information:

Esa Kallio, President and CEO, tel. +358 50 337 7953

Harri Luhtala, Executive Vice President, Finance, CFO, tel. +358 50 592 9454

MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The owners of the company include Finnish municipalities, the public sector pension fund Keva and the State of Finland. The Group’s balance sheet is over EUR 53 billion.

MuniFin’s customers include municipalities, joint municipal authorities, wellbeing services counties, joint county authorities, corporate entities under the control of the above-mentioned organisations, and affordable social housing. Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.

MuniFin’s customers are domestic, but the Company operates in a completely global business environment. The Company is an active Finnish bond issuer in international capital markets and the first Finnish green and social bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.

Read more: www.munifin.fi

Attachment

MuniFin_Financial_Statements_Bulletin_2024

The MIL Network –

February 13, 2025

MIL-OSI: Logansport Financial Corp. Reports Earnings for the Three and Twelve Months Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

LOGANSPORT, Ind., Feb. 12, 2025 (GLOBE NEWSWIRE) — Logansport Financial Corp., (OTCBB: LOGN), parent company of Logansport Savings Bank, reported net earnings for the three and twelve months ended December 31, 2024.

Net earnings for the three months ended December 31, 2024 totaled $445,000, compared to the $295,000 in net earnings reported for the three months ended December 31, 2023.

Net earnings for the year ended December 31, 2024 totaled $1,254,000, compared to the $1,791,000 reported for the year ended December 31, 2023. Earnings per share was $2.05 for December 31, 2024, compared to $2.93 for December 31, 2023. Return on Assets finished the year at 0.475% for 2024 compared to 0.723% for 2023. The Return on Equity finished the year at 6.14% for December 31, 2024, compared to 8.65% for December 31, 2023.

The statements contained in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involves a number of risks and uncertainties. A number of factors could cause results to differ materially from the objectives and estimates expressed in such forward-looking statements. These factors include, but are not limited to, changes in the financial condition of issuers of the Company’s investments and borrowers, changes in economic conditions in the Company’s market area, changes in policies of regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, changes in the position of banking regulators on the adequacy of our allowance for loan losses, and competition, all or some of which could cause actual results to differ materially from historical earnings and those presently anticipated or projected. These factors should be considered in evaluation of forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Logansport Financial Corp.
Selected Financial Data
(Dollars in thousands except for share data)


	12/31/2024		12/31/2023

Total Assets	$263,860		$247,713

Loans receivable, net		175,742		168,672
Allowance for loan losses		1,954		2,553
Cash and cash equivalents		14,992		4,810
Interest Bearing Time Deposits in banks		–		–
Securities available for sale		54,567		59,404
Federal Home Loan Bank stock		3,082		3,082
Deposits		225,904		207,779
FHLB borrowings and note payable		15,000		15,000
Accrued Interest and other liabilities		2,525		2,266
Shareholders’ equity		20,431		20,717
Shares Issued and Outstanding		611,597		611,334
Nonperforming loans		2,907		504
Real Estate Owned		–		–

	Three months ended 12/31				Year ended 12/31
		2024		2023		2024			2023

Interest income	$3,559		$3,254		$12,981			$11,967
Interest expense		1,552		1,554		6,209			4,897
Net interest income		2,007		1,700		6,772			7,070
Provision for loan losses		–		–		(79	)		–
Net interest income after provision		2,007		1,700		6,851			7,070
Gain on sale of loans		133		36		393			170
Other income		211		179		999			1,018
General, admin. & other expense		1,797		1,580		6,968			6,247
Earnings before income taxes		554		335		1,275			2,011
Income tax expense		109		40		21			220
Net earnings	$445		$295		$1,254			$1,791

Earnings per share					$2.05			$2.93
Weighted avg. shares o/s-diluted						608,124			608,272

Contact: Kristie Richey
Chief Financial Officer
Phone-574-722-3855
Fax-574-722-3857

The MIL Network –

February 13, 2025

MIL-OSI New Zealand: Housing Market – Subtle turning point for property sellers – CoreLogic

Source: CoreLogic

New Zealand’s property market is showing early signs of a gentle turnaround, giving resellers a glimmer of renewed leverage after a prolonged downturn.

CoreLogic NZ’s latest Pain & Gain report for Q4 2024 shows the proportion of properties being resold for more than the original purchase price was 91.0%, up from 90.1% in Q3 2024.
However, that’s still low compared to the post-COVID boom when more than 99% of properties typically sold for a profit.

CoreLogic NZ Chief Property Economist Kelvin Davidson said the small rise suggests resale conditions are gradually improving, aligning with broader signs of a market turnaround.

“While profits are down from the peak, most property resellers continue to see gains.

“The latest increase in the frequency of resale profits supports other indicators that the market may have found a floor, largely due to recent mortgage rate falls.

“However, with property values still about 18% below their peak and the overhang of listings keeping buyers in a strong position, selling conditions remain subdued, he said.

Regaining ground
Mr Davidson said while buyers still have the upper hand, resellers may be regaining ground as profits grow.

“In Q4, the typical size of reseller gains ticked up to $289,500 from $279,000 in the third quarter of last year.

“While the figure is still low compared to the peak in late 2021 of $440,000, it’ still larger than anything we saw prior to Q4 2020.

“On the flipside, the median resale loss was unchanged at $55,000 in Q4, remaining within the $50,000–$60,000 range seen over the past two years,” he said.

Mr Davidson added that although these profits are still significant and losses small, it’s important to acknowledge two extra factors.

“Hold period plays a key role, and even in a downturn, anybody who has owned property for several years will still tend to make a profit. For owner-occupiers it’s not necessarily a cash windfall either. Indeed, most equity will just need to be recycled back into the next purchase.”

Holding out
In Q4 2024, sellers who resold for a gross profit held their properties for a median of 9 years, up from 8.6 years the previous quarter.

Mr Davidson said this could reflect caution amid softer market conditions, with many choosing to wait for more favourable opportunities.
“In some cases, particularly for investors, a target return strategy has meant holding properties longer due to the slower housing market over the past 2-3 years.

“However, it may also reflect weaker housing sentiment and greater caution, with owners opting to ride out the current soft patch before testing the market,” he said.

Losses ease
Mr Davidson said resale performance across property types suggested a turning point, with incurred losses starting to ease.

“In the fourth quarter of the year apartment resales incurred a loss on 29.5% of deals, compared to 8.3% for standalone houses.”

“Although the apartment figure clearly remains high, it dropped from 31.8% in the third quarter of last year. Whereas the ‘pain’ percentage of houses fell from 9.1% in Q3,” he said.

Falling rates to boost confidence
Looking ahead, Mr Davidson expects that lower mortgage rates will push up house prices to some extent in 2025, which will tend to strengthen the position for property resellers.

“But any turning point for house prices won’t be sudden or strong, and lingering weakness in the labour market alongside an abundance of listings should mean finance-approved buyers continue to see good opportunities,” he concluded.

Read CoreLogic’s latest Pain & Gain report at www.corelogic.co.nz/news-research/reports/pain-and-gain-report.

About CoreLogic
CoreLogic NZ is a leading, independent provider of property data and analytics. We help people build better lives by providing rich, up-to-the-minute property insights that inform the very best property decisions. Formed in 2014 following the merger of two companies that had strong foundations in New Zealand’s property industry – Terralink Ltd and PropertyIQ NZ Ltd – we have the most comprehensive property database with coverage of 99% of the NZ property market and more than 500 million decision points in our database.
We provide services across a wide range of industries, including Banking & Finance, Real Estate, Government, Insurance and Construction. Our diverse, innovative solutions help our clients identify and manage growth opportunities, improve performance and mitigate risk. We also operate consumer-facing portal propertyvalue.co.nz – providing important insights for people looking to buy or sell their home or investment property. We are a wholly owned subsidiary of CoreLogic, Inc – one of the largest data and analytics companies in the world with offices in New Zealand, Australia, the United States and United Kingdom. For more information visit corelogic.co.nz.

MIL OSI New Zealand News –

February 13, 2025
MIL-OSI: Patria Reports Fourth Quarter & Full Year 2024 Earnings Results

Source: GlobeNewswire (MIL-OSI)

GRAND CAYMAN, Cayman Islands, Feb. 12, 2025 (GLOBE NEWSWIRE) — Patria (Nasdaq:PAX) reported today its unaudited results for the fourth quarter and full year ended December 31, 2024. The full detailed presentation of Patria’s fourth quarter and full year 2024 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.

Alex Saigh, Patria’s CEO, said: “The fourth quarter capped a very exciting and transformational year for Patria. We raised $5.5 billion in 2024, inclusive of $300 million in our Advisory business, exceeding our $5 billion target. A wide variety of strategies and products, most of which did not exist at the time of our IPO four years ago, contributed to our fundraising. Our Fee Earning AUM reached $33 billion representing year-over-year growth of 38%, and we achieved our target FRE of $170 million for the full year, reflecting 15% year-over-year growth. Also, we generated Performance Related Earnings, or PRE, of $41 million, primarily reflecting the sale of Aguas Pacifico, a highly successful infrastructure investment in our Infrastructure Fund III. Overall, driven by strong FRE growth and PRE, we delivered $89 million of Distributable Earnings or $0.58 per share in the quarter and $189 million or $1.24 per share for the full year. As we look ahead to 2025, we believe we are well positioned to generate the $6 billion of fundraising and $200 to $225 million of FRE we are targeting for the full year. Our success highlights how the increased diversification of our platform and the investments we are making in distribution and new product development are translating into stronger and more diverse growth for the firm, leaving us very excited about what lies ahead.”

Financial Highlights (reported in $ USD)

IFRS results included $56.8 million of net income attributable to Patria in Q4 2024 and $73.4 million for the full year. Patria generated Fee Related Earnings of $54.8 million in Q4 2024, up 18% from $46.7 million in Q4 2023, with an FRE margin of 59%. For the full year 2024, Patria generated Fee Related Earnings of $170.1 million, up 15% from $147.7 million in 2023, with an FRE margin of 57%. Distributable Earnings were $89.1 million for Q4 2024, or $0.58 per share, and $189.2 million for the full year, or $1.24 per share.

Dividends

Patria declared a quarterly dividend of $0.15 per share to record holders of common stock at the close of business on February 28th, 2025. This dividend will be paid on March 17th, 2024.

Conference Call

Patria will host its fourth quarter and full year 2024 earnings conference call via public webcast on February 12th, 2025, at 9:00 a.m. ET. To register and join, please use the following link:

https://edge.media-server.com/mmc/p/e5czewmy/

For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ shortly after the call’s completion.

About Patria

Patria is a global alternative asset manager and industry leader in Latin America. Founded over 35 years ago, Patria has total assets under management of $41.9 billion, and offices in 13 cities on 4 continents. Patria aims to generate attractive long-term investment returns and, through a diversified platform with strategies that include Private Equity, Infrastructure, Credit, Real Estate, Public Equities and Global Private Markets Solutions, serve as the gateway to alternative investments for both local investors in Latin America, as well as global investors. Further information is available at www.patria.com.

Forward-Looking Statements

This press release may contain 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. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words, among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including but not limited to those described under the section entitled “Risk Factors” in our most recent annual report on Form 20-F, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings.

Contact

Patria Shareholder Relations
E. PatriaShareholderRelations@patria.com
T. +1 917 769 1611

The MIL Network –

February 13, 2025
MIL-OSI Australia: Commonsense changes to help more Australians into a home

Source: Australian Ministers for Education

Financial regulators will update their guidance to make it easier for Australians with a HELP debt to responsibly take out a mortgage and buy a home, and also unlock the construction of more units, following a request from the Albanese Government.

We’re tackling this housing challenge from every possible angle.

These are commonsense changes that will help more Australians into a home.

I’ve agreed these changes in discussions with regulators and convened the banks to discuss them.

People with a HELP debt should be treated fairly when they want to buy a house and we’re working with the regulators to make sure they are.

By unlocking more finance from the banks we’ll see more housing projects get off the ground more quickly.

Currently, a barrier for young Australians to get into the housing market is the reluctance of banks to give them a mortgage.

The ABA has indicated that one reason for this uncertainty is the interpretation of lending regulations and guidance by APRA and ASIC.

APRA has confirmed it will start consultation soon on the treatment of HELP debts in serviceability requirements and debt reporting.

ASIC has confirmed it will move to quickly implement changes to its guidance on the treatment of HELP debts, following targeted consultation.

The government has also asked APRA to update and clarify its regulatory guidance to help unlock the construction of more units.

Some lenders have interpreted advice issued by APRA in 2017, that finance for construction of new unit blocks should depend on all properties being pre-sold. Lenders have indicated this is a barrier to financing.

The interpretation of this guidance as “100% pre-sales” by some lenders has limited housing supply, as smaller developers often don’t have the capital to finance the start of construction without support from the banks.

APRA has confirmed it will communicate to banks that while it expects banks to consider the extent of presales as part of prudent credit risk management, APRA does not expect 100% pre-sales.

ASIC has confirmed it will move to quickly implement changes to its guidance on responsible lending laws.

Helping more Australians into homes is one of the Albanese Government’s highest priorities.

This is all part of our comprehensive Homes for Australia plan which includes the biggest home building program of any government in history.

Peter Dutton’s cuts to housing would mean fewer homes when Australia desperately needs more.

MIL OSI News –

February 12, 2025
MIL-OSI Global: Struggling with money? Here are 5 tips for growing your income from a financial expert

Source: The Conversation – Canada – By Lisa Kramer, Professor of Finance, University of Toronto

Whether you are just starting or looking to advance your financial skills, there are steps you can take to improve your financial situation. (Shutterstock)

Personal finance can often feel overwhelming, with many Millennial and Gen Z individuals struggling with student loans, the high cost of living, housing market challenges and a general sense of financial anxiety. But just as any challenge can be overcome through skill development and persistence, so can your finances.

Whether you are just starting or looking to advance your financial skills, there are steps you can take to improve your financial situation. From basic recommendations to more advanced strategies, here are some ways to get yourself on the path to financial stability.

Ready to make a change? The Quarter Life Glow-up is a new, six-week newsletter course from The Conversation’s UK and Canada editions.

Every week, we’ll bring you research-backed advice and tools to help improve your relationships, your career, your free time and your mental health – no supplements or skincare required. Sign up here to start your glow-up at any time.

1. Create a budget

The first step to mastering your finances is working out where your money is going. You may discover, as my now-husband realized when he was a graduate student, that you’re spending a third of your food expenditures on coffee.

Once you determine where your money is going, you can reign in some of your expenses and ensure some money is left over each month to devote to debt repayment or savings. Creating a budget is essential for doing this.

The Government of Canada has an online budget planner tool available, as does the United States Federal Trade Commission and the United Kingdom government’s Money and Pensions Service.

Once your budget is made, you can focus on reducing discretionary costs and redirect those savings toward your financial goals.

Create a realistic budget that aligns with your financial goals.
(Shutterstock)

2. Boosting your income

It can be difficult to reduce expenses in an inflationary environment — especially when the cost of basic needs like food and shelter are becoming increasingly expensive in Canada, the United States and elsewhere.

But you can still find ways to boost your income without necessarily getting a second or third job.

Read more:
Maths that will help you as an adult: from baking a cake to asking for a pay rise

It can be daunting to ask your employer for a raise, but you’re much more likely to get one if you ask. Arm yourself with quantifiable evidence about your productivity and work ethic. Then, rehearse your request with a mentor who is further along on your career path.

If you don’t succeed on your first try, use the experience to understand how to secure a raise in the future. Another way to get a raise? While still employed — and on your own time, not company time — look for a new job, get an offer and use it as leverage to politely negotiate a raise. If you’re still unsuccessful, it may be time to move on to that new job.

3. Build your pension

Older generations are more likely to have worked in jobs that came with defined-benefit pensions, a type of pension plan that provides someone with a stream of income after they retire.

These days, jobs are less likely to come with such perks. A recent World Bank report found about half of gig workers worldwide have no retirement plan; in some countries, that figure is as high as 75 per cent.

It’s important to check if your current employer offers a defined contribution pension plan, which involves you and your employer contributing to a saving account that grows over time.

Even if you don’t have access to such a plan, consider using a robo-advisor to replicate one of its key features by setting up an automatic monthly contribution to an investment account. Then, you can increase the amount you contribute every time you get a raise.

You should also consider allocating that investment to a well-diversified stock index, or to a blend of stocks and bonds if you are relatively risk averse. An exchange-traded fund, also known as an ETF, is a low-cost way to do this compared to buying mutual funds. While the value of your investment may go up and down over the short term, it is likely to perform well over the long term.

Talking to a financial advisor is always a good idea if you feel stuck.
(Shutterstock)

4. Steady does it

Once you have set up automatic contributions and established a routine of increasing them over time, you will see your investment account balance start to grow. Even if you can put away only small amounts each month in the beginning, you’ll develop good financial habits.

Your next task should be avoiding the temptation of timing the ups and downs of financial markets by actively trading. To dodge this common pitfall, avoid examining the balance of your investment account on a month-to-month basis and keep contributing, regardless of whatever may be happening in financial markets.

Read more:
If you have money anxiety, knowing your financial attachment style can help

Ironically, overconfident investors often underperform the market when they try — and fail — to outperform by frequently trading their investment holdings. Successful investors understand the most reliable path to wealth accumulation is paved with a buy-and-hold mentality, meaning you should purchase investments with the intention of keeping them long-term rather than frequently buying and selling.

5. Imagine the future

When you’re young, it can be hard to identify with an abstract future version of yourself in retirement. Your golden years may be decades in the future, and it can seem like you have ages to prepare for whatever life will bring you at that stage in life.

However, research shows that the clearer you can mentally picture your future self, the more motivated you will be to make sensible saving and retirement planning decisions for your future self.

Try imagining what your life will be like when you’re retired, or what you will look like. Will you have grey hair or wrinkles? How will you spend your time? Picture your future self in retirement and the kind of life you would like to have.

Meet the challenge head-on

If you still find yourself overwhelmed by these tips and don’t know where to begin, consider contacting a fee-only financial advisor to analyze your situation and provide you with personalized advice.

Remember, no matter what financial challenge you may face, it’s simply a new opportunity to overcome. With the right strategies and support, you’ll be able to tackle any financial hurdles and work toward a more secure future for yourself.

Achieving financial stability is a journey that requires ongoing effort and dedication. Each milestone you reach brings you closer to your ultimate goal.

Lisa Kramer has received funding from the Social Sciences and Humanities Research Council of Canada and the Canadian Securities Institute Research Foundation.

– ref. Struggling with money? Here are 5 tips for growing your income from a financial expert – https://theconversation.com/struggling-with-money-here-are-5-tips-for-growing-your-income-from-a-financial-expert-234623

MIL OSI – Global Reports –

February 12, 2025
MIL-OSI United Kingdom: Manchester’s First Street Hub reaches completion milestone
Source: United Kingdom – Executive Government & Departments

A new state-of-the-art government office building in Manchester’s city centre has hit a key stage in its construction.
A new state-of-the-art government office building in Manchester’s city centre has hit a key stage in its construction.

The Government Property Agency (GPA) has confirmed it has accepted the handover of its new hub in First Street after the building reached practical completion of its Category A (Cat A) fit out and lease commencement. Works were completed by BAM Construct UK appointed by developer Ask Real Estate.

This latest milestone continues the countdown to ready for service, with the nine-storey circa 12,000 square metre building now ready for the internal fit-out to commence.

Once complete the hub will accommodate around 2,600 civil servants from departments including the Ministry for Housing, Communities and Local Government (MHCLG), the Department for Business and Trade (DBT), the Office for Standards in Education (OFSTED), and the Department for Education (DfE). It is expected that more than 150 roles will be relocated to Manchester from across several different government departments and agencies once the hub is operational.

The building forms part of the Government Hubs Programme supporting economic growth across the UK. The programme is rationalising the government’s estate in towns and cities across the UK, playing a pivotal role in delivering modern, customer-focused and varied workspaces where civil servants can thrive. The design recognises that different types of work require different spaces to enable collaboration, creativity and community regardless of how people choose to work.

Parliamentary Secretary for the Cabinet Office, Georgia Gould, said:

It’s great to see the Manchester First Street Hub move onto this next stage of construction.

UK Government Hubs across the country help to consolidate our estate. Not only cutting waste by removing old inefficient buildings from our portfolio, but also giving people across the country the chance to work in the Civil Service, and driving economic growth in the local area.

Georgina Dunn, the GPA’s Interim Director of Capital Projects, said:

It’s very gratifying to reach this significant stage in the programme. This new state-of-the-art office will provide a home for civil servants from across the government in Manchester, making it one of the largest hubs for cross-departmental collaboration and operation outside London. The GPA remains immensely proud of the industry-leading sustainability, accessibility and workplace standards delivered by the Government Hubs Programme.

A competitive tender process for the subsequent fit-out works has completed with the GPA due to make an announcement in the next few weeks.

John Hughes, Managing Director at Ask Real Estate said:

Bringing the GPA hub to practical completion is a huge testament to our commitment to driving sustainability in the workplace sector. Achieving a NABERS 5.5 Design for Performance rating – the first building in Manchester City Centre to reach this milestone – supports the high ambitions set by HM Government.

First Street and its extended neighbourhood will be boosted significantly when the GPA takes occupation.

The £105m development was forward-funded by Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension funds, which will use the secure, long-dated and index-linked cashflows to pay the pensions of its policyholders over the coming decades.

James Agar, Head of Real Estate Origination at PIC, added:

We are delighted to have reached practical completion on such an important project for PIC. The First Street hub is a great example of what can be achieved through public private partnerships.

The sustainability and ESG focus of this best-in-class building are clear to see, these were a key element of our investment case for the asset which will help us to pay the pensions of our policy holders.

The building deepens our relationship with the GPA and will assist the UK Government in delivering the transition to Net Zero. We look forward to the GPA taking formal occupation of the building and welcoming more than 2,500 civil servants to the site.

The First Street Hub is in the heart of Manchester and a few minutes’ walk from Oxford Road and Deansgate rail stations. It has been designed to be class-leading, meeting inclusive and accessible design standards.

Lead developer Ask Real Estate and its joint venture partner, Richardson, secured a full pre-let of the Grade A BREEAM Excellent office building to the GPA which then signed a lease with building owners PIC in 2022.

For more information contact the GPA’s comms team: comms@gpa.gov.uk

Share this page

The following links open in a new tab

Share on Facebook (opens in new tab)

Share on Twitter (opens in new tab)

Updates to this page

Published 11 February 2025
MIL OSI United Kingdom –
February 11, 2025
MIL-OSI China: China Harbour’s moduling building factory begins operations in Saudi Arabia

Source: China State Council Information Office 3

A moduling building factory under China Harbour Engineering Company’s (CHEC) Sedra project in Saudi Arabia has officially commenced operations.

Spanning approximately 200,000 square meters, the factory will supply prefabricated components for the Sedra project’s fully modular villas, while laying the industrial foundation for future prefabricated construction initiatives in Saudi Arabia, the CHEC announced in a statement on Sunday.

The facility is equipped with an independently developed production management system and advanced robotics, enabling a fully digitalized workflow covering design, production, and storage.

At the inauguration ceremony on Sunday, Iain McBride, head of commercial at Saudi ROSHN Real Estate Company, praised the factory’s remarkable speed of completion, commending its design, construction quality, and safety standards.

“We look forward to deepening our collaboration with China Harbour in alignment with Vision 2030, the subsequent phases of the Sedra project, and expansion plans, working together to create a new chapter of mutually beneficial cooperation between China and Saudi Arabia,” he said.

Yang Zhiyuan, general manager of CHEC (Middle East), said China Harbour will continue working closely with Saudi Arabia’s Public Investment Fund and ROSHN to establish a leading prefabricated construction production base in the Middle East.

MIL OSI China News –

February 11, 2025

MIL-OSI: F&M Bank Welcomes Peter Schork as Regional President for Toledo, Ohio & Southeast Michigan

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, Feb. 10, 2025 (GLOBE NEWSWIRE) — F&M Bank (“F&M”), an Archbold, Ohio-based bank owned by Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) announced that Peter Schork has joined F&M as Regional President of the Toledo, Ohio, and Southeastern Michigan regions.

Lars Eller, President and CEO of F&M stated, “As a proven community banker, Peter brings a wealth of experience to F&M. His leadership, deep market knowledge, and commitment to building strong relationships will be an invaluable resource to F&M as we continue to grow and serve our communities. We look forward to the impact he will make in driving success for our customers, employees, and stakeholders.”

In his new role, Peter will oversee F&M’s presence in the Toledo, Ohio, and Birmingham, Michigan markets, including offices in Waterville, Swanton, Perrysburg, Sylvania, and Downtown Toledo, as well as F&M’s Loan Production Office in Troy and its Birmingham, Michigan location.

Peter brings over 25 years of banking and financial experience to F&M. Prior to joining the Company, he served as the Ann Arbor President for Oxford Bank and co-founded the Ann Arbor State Bank serving as its President and CEO. In addition to his community bank experience, Peter was the CFO at Catalyst Commercial Real Estate, and the President of a Michigan-based title, mortgage, and real estate company. In addition to his business experience, Peter is a proud supporter of various community organizations. Currently, he serves on the Michigan Theater Board of Trustees, is a member of the Ray and Eleanor Cross Foundation and the Kiwanis Club of Ann Arbor and is a Board Member and Treasurer for the Homeless/Unhoused Mission. Peter holds a Master of Business Administration (M.B.A.) with a specialization in Finance from Eastern Michigan University.

About F&M Bank:
F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe harbor statement
Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

__________________________________________

Company Contact:	Investor and Media Contact:
Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e11179be-cf20-449e-9416-ca1e8ff1fd2f

The MIL Network –

February 11, 2025

MIL-OSI: Apollo Commercial Real Estate Finance, Inc. Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) — Apollo Commercial Real Estate Finance, Inc. (the “Company” or “ARI”) (NYSE:ARI) today reported results for the quarter and year ended December 31, 2024.

Net income (loss) attributable to common stockholders per diluted share of common stock was $0.27 and ($0.97) for the quarter and year ended December 31, 2024, respectively. Distributable Earnings (a non-GAAP financial measure defined below) and Distributable Earnings prior to net realized loss on investments per diluted share of common stock were $0.32 and $0.32 for the quarter ended December 31, 2024, respectively, and $0.43 and $1.33 for the year ended December 31, 2024, respectively.

Commenting on 2024 performance, Stuart Rothstein, Chief Executive Officer and President of the Company, said:
“ARI had an active year of capital deployment in 2024, continuing to benefit from the strength and breadth of Apollo’s real estate credit origination capabilities. A resurgence in real estate transaction activity over the past year led to $2.5bn of repayments in ARI’s portfolio and we successfully redeployed that capital into new vintage, attractively priced loans.”

ARI issued a detailed presentation of the Company’s quarter and year ended December 31, 2024 results, which can be viewed at www.apollocref.com.

Conference Call and Webcast
The Company will hold a conference call to review fourth quarter and year end results on February 11, 2025 at 10am ET. To register for the call, please use the following link:

https://register.vevent.com/register/BI38e4ed2c79b3458581a16a9a003e6be1

After you register, you will receive a dial-in number and unique pin. The Company will also post a link in the Stockholders’ section on ARI’s website for a live webcast. For those unable to listen to the live call or webcast, there will be a webcast replay link posted in the Stockholders’ section on ARI’s website approximately two hours after the call.

Distributable Earnings
“Distributable Earnings,” a non-GAAP financial measure, is defined as net income available to common stockholders, computed in accordance with GAAP, adjusted for (i) equity-based compensation expense (a portion of which may become cash-based upon final vesting and settlement of awards should the holder elect net share settlement to satisfy income tax withholding), (ii) any unrealized gains or losses or other non-cash items (including depreciation and amortization related to real estate owned) included in net income available to common stockholders, (iii) unrealized income from unconsolidated joint ventures, (iv) foreign currency gains (losses), other than (a) realized gains/(losses) related to interest income, and (b) forward point gains/(losses) realized on the Company’s foreign currency hedges, and (v) provision for current expected credit losses.

As a REIT, U.S. federal income tax law generally requires the Company to distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains, and that the Company pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its net taxable income. Given these requirements and the Company’s belief that dividends are generally one of the principal reasons shareholders invest in a REIT, the Company generally intends over time to pay dividends to its stockholders in an amount equal to its net taxable income, if and to the extent authorized by the Company’s board of directors. Distributable Earnings is a key factor considered by the Company’s board of directors in setting the dividend and as such the Company believes Distributable Earnings is useful to investors.

During the year ended December 31, 2024, the Company recorded in the consolidated statement of operations realized losses on the sale of a commercial mortgage loan secured by a hotel in Honolulu, Hawaii, and the extinguishment of a commercial mortgage loan secured by a portfolio of eight hospitals in Massachusetts.

The Company believes it is useful to its investors to also present Distributable Earnings prior to net realized loss on investments and gain on extinguishment of debt, in applicable periods, to reflect its operating results because (i) the Company’s operating results are primarily comprised of earning interest income on its investments net of borrowing and administrative costs, which comprise the Company’s ongoing operations and (ii) it has been a useful factor related to the Company’s dividend per share because it is one of the considerations when a dividend is determined. The Company believes that its investors use Distributable Earnings and Distributable Earnings prior to net realized loss on investments and realized gain on extinguishment of debt, or a comparable supplemental performance measure, to evaluate and compare the performance of the Company and its peers.

A significant limitation associated with Distributable Earnings as a measure of the Company’s financial performance over any period is that it excludes unrealized gains (losses) from investments. In addition, the Company’s presentation of Distributable Earnings may not be comparable to similarly titled measures of other companies, that use different calculations. As a result, Distributable Earnings should not be considered as a substitute for the Company’s GAAP net income as a measure of its financial performance or any measure of its liquidity under GAAP. Distributable Earnings are reduced for realized losses on loans which include losses that management believes are near certain to be realized.

A reconciliation of Distributable Earnings to GAAP net income (loss) available to common stockholders is included in the detailed presentation of the Company’s quarter and year ended December 31, 2024 results, which can be viewed at www.apollocref.com.

About Apollo Commercial Real Estate Finance, Inc.
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, Inc., a high-growth, global alternative asset manager with approximately $751 billion of assets under management at December 31, 2024.

Additional information can be found on the Company’s website at www.apollocref.com.

Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These forward-looking statements include information about possible or assumed future results of the Company’s business, financial condition, liquidity, results of operations, plans and objectives. When used in this release, the words believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: higher interest rates and inflation; market trends in the Company’s industry, real estate values, the debt securities markets or the general economy; the timing and amounts of expected future fundings of unfunded commitments; the return on equity; the yield on investments; the ability to borrow to finance assets; the Company’s ability to deploy the proceeds of its capital raises or acquire its target assets; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. For a further list and description of such risks and uncertainties, see the reports filed by the Company with the Securities and Exchange Commission. The forward-looking statements, and other risks, uncertainties and factors are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company. Forward-looking statements are not predictions of future events. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CONTACT: Hilary Ginsberg

Investor Relations

(212) 822-0767

The MIL Network –

February 11, 2025

MIL-OSI: Prospect Capital Announces Financial Results for Fiscal December 2024 Quarter

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended December 31, 2024.

FINANCIAL RESULTS

All amounts in $000’s except per share amounts (on weighted average basis for period numbers)	Quarter Ended	Quarter Ended	Quarter Ended
	December 31, 2024	September 30, 2024	December 31, 2023

Net Investment Income (“NII”)	$86,431	$89,877	$96,927
NII per Common Share	$0.20	$0.21	$0.24
Interest as % of Total Investment Income	91.0%	94.0%	92.3%

Net Income (Loss) Applicable to Common Shareholders	$(30,993)	$(165,069)	$(51,436)
Net Income (Loss) per Common Share	$(0.07)	$(0.38)	$(0.13)

Distributions to Common Shareholders	$65,554	$77,358	$74,056
Distributions per Common Share	$0.15	$0.18	$0.18
Cumulative Paid and Declared Distributions to Common Shareholders⁽¹⁾	$4,445,060	$4,384,924	$4,162,509
Cumulative Paid and Declared Distributions per Common Share⁽¹⁾	$21.39	$21.25	$20.76
Multiple of Net Asset Value (“NAV”) per Common Share⁽¹⁾	2.7x	2.6x	2.3x

Total Assets	$7,234,855	$7,592,705	$7,781,214
Total Liabilities	$2,164,305	$2,469,590	$2,596,824
Preferred Stock	$1,630,514	$1,612,302	$1,500,741
Net Asset Value (“NAV”) to Common Shareholders	$3,440,036	$3,510,813	$3,683,649
NAV per Common Share	$7.84	$8.10	$8.92

Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments	$1,879,738	$1,631,291	$1,187,740

Net of Cash Debt to Total Assets	28.1%	29.7%	31.2%
Net of Cash Debt to Equity Ratio⁽²⁾	39.8%	43.7%	46.2%
Net of Cash Asset Coverage of Debt Ratio⁽²⁾	351%	329%	316%

Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity	91.9%	86.0%	78.4%
Unsecured and Non-Recourse Debt as % of Total Debt	100.0%	100.0%	100.0%

⁽¹⁾	Declared dividends are through the April 2025 distribution. February through April 2025 distributions are estimated based on shares outstanding as of 2/7/2025.
⁽²⁾	Including our preferred stock as equity.

CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

Prospect is declaring distributions to common shareholders as follows:

Monthly Cash Common Shareholder Distribution	Record Date	Payment Date	Amount ($ per share)
February 2025	2/26/2025	3/20/2025	$0.0450
March 2025	3/27/2025	4/17/2025	$0.0450
April 2025	4/28/2025	5/20/2025	$0.0450

Prospect expects to declare May 2025, June 2025, July 2025, and August 2025 distributions to common shareholders in May 2025.

Taking into account past distributions and our current share count for declared distributions, since inception through our April 2025 declared distribution, Prospect will have distributed $21.39 per share to original common shareholders, representing 2.7 times December 2024 common NAV per share, aggregating $4.4 billion in cumulative distributions to all common shareholders.

Since Prospect’s initial public offering in July 2004 through December 31, 2024, Prospect has invested over $21 billion across over 400 investments, exiting over 300 of these investments.

Drivers focused on optimizing our business include: (1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans, including sometimes with selected equity investments, (2) continued amortization of our subordinated structured notes portfolio, (3) prudent exits of equity linked assets (including real estate properties and corporate investments), (4) enhancement of portfolio company operating performance, and (5) greater utilization of our cost efficient revolving floating rate credit facility.

In our middle market lending strategy, we recently provided a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear Holdings, LLC (“Taos Footwear”), aggregating $65 million, in collaboration with Taos Footwear’s founder and leadership team. Taos Footwear is a leading, innovative footwear brand providing customers with stylish and supportive footwear products. Taos Footwear is renowned for its supportive footbed that has reshaped the lifestyle footwear industry over the past 20 years.

Examples of similar recent investments in our middle market lending strategy with both first lien senior secured debt and equity linked investments include Druid City Infusion, LLC (an infusion therapy services company with multiple locations across the South and Mountain West regions of the United States), Discovery Point Retreat, LLC (a rapidly growing detox and rehabilitation provider in North Texas), The RK Logistics Group, Inc. (a logistics service provider of turnkey inventory management and transportation services focused on technology and other sectors), and iQor Holdings, Inc. (a provider of customer experience services and business process outsourcing services).

Our subordinated structured notes portfolio as of December 31, 2024 represented 5.8% of our investment portfolio, a reduction of 210 basis points from 7.9% as of December 31, 2023. Since the inception of this strategy in 2011 and through December 31, 2024, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times. The remaining subordinated structured notes portfolio had a trailing twelve month average cash yield of 24.4% and an annualized GAAP yield of 3.9% (in each case as of December 31, 2024, based on fair value, and excluding investments being redeemed), with the difference between cash yield and GAAP yield representing amortization of our cost basis.

In our real estate property portfolio at National Property REIT Corp. (“NPRC”), since the inception of this strategy in 2012 and through December 31, 2024, we have exited 51 property investments (including two exits in the December 2024 quarter) that have earned an unlevered investment-level gross cash IRR of 24.3% and cash on cash multiple of 2.5 times. The remaining real estate property portfolio included 59 properties and paid us an income yield of 6.9% for the quarter ended December 31, 2024. Our aggregate investments in the related portfolio company had a $522 million unrealized gain as of December 31, 2024.

Our senior management team and employees own 28.7% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or approximately $1.0 billion of our common equity as measured at NAV.

PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

All amounts in $000’s except per unit amounts	As of	As of	As of
All amounts in $000’s except per unit amounts	December 31, 2024	September 30, 2024	December 31, 2023

Total Investments (at fair value)	$7,132,928	$7,476,641	$7,631,846
Number of Portfolio Companies	114	117	126
Number of Industries	33	33	36

First Lien Debt	64.9%	64.9%	58.7%
Second Lien Debt	10.2%	11.1%	15.5%
Subordinated Structured Notes	5.8%	6.2%	7.9%
Unsecured Debt	0.1%	0.1%	0.1%
Equity Investments	19.0%	17.7%	17.8%
Mix of Investments with Underlying Collateral Security	80.9%	82.2%	82.1%

Annualized Current Yield – All Investments	9.1%	9.7%	10.1%
Annualized Current Yield – Performing Interest Bearing Investments	11.2%	11.8%	12.3%

Non-Accrual Loans as % of Total Assets ⁽¹⁾	0.4%	0.5%	0.2%

Middle-Market Loan Portfolio Company Weighted Average EBITDA⁽²⁾	$101,644	$104,682	$109,719
Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio⁽²⁾	6.1x	5.7x	5.4x

⁽¹⁾	Calculated at fair value.
⁽²⁾	For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of the release.

During the March 2025 (to date), December 2024, and September 2024 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:

All amounts in $000’s	Quarter Ended	Quarter Ended	Quarter Ended
All amounts in $000’s	March 31, 2025 (to date)	December 31, 2024	September 30, 2024

Total Originations	$110,724	$134,956	$290,639

Middle-Market Lending	86.4%	67.7%	85.8%
Middle-Market Lending / Buyouts	—%	14.5%	6.1%
Real Estate	13.6%	17.8%	7.8%
Subordinated Structured Notes	—%	—%	—%

Total Repayments and Sales	$19,480	$383,363	$282,328

Originations, Net of Repayments and Sales	$91,244	$(248,407)	$8,311

For additional disclosure see “Primary Origination Strategies” at the end of this release.

CAPITAL AND LIQUIDITY

Our multi-year, long-term laddered and diversified historical funding profile has included a $2.1 billion revolving credit facility (aggregate commitments with 48 current lenders), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and, after we retire our upcoming $156.2 million convertible bond maturity due March 2025 (utilizing existing liquidity on hand), will have just $3.9 million remaining of debt maturing during calendar year 2025.

On June 28, 2024, we completed an extension and upsizing of our Revolving Credit Facility (the “Revolving Credit Facility”), which extended the term of the Facility five years and the revolving period to four years from such date. The Facility includes a revolving period that extends through June 28, 2028, followed by an additional one-year amortization period. The interest rate for amounts drawn under the Facility remained unchanged from prior to the extension and upsizing and is one-month SOFR plus 2.05%.

Our total unfunded eligible commitments to portfolio companies totals approximately $62 million, of which $29 million are considered at our sole discretion, representing 0.9% and 0.4% of our total assets as of December 31, 2024, respectively.

	As of	As of
All amounts in $000’s	December 31, 2024	September 30, 2024
Net of Cash Debt to Total Assets Ratio	28.1%	29.7%
Net of Cash Debt to Equity Ratio⁽¹⁾	39.8%	43.7%
% of Interest-Bearing Assets at Floating Rates	79.8%	81.0%
Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity	91.9%	86.0%

Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments	$1,879,738	$1,631,291

Unencumbered Assets	$4,763,601	$4,852,971
% of Total Assets	65.8%	63.9%

⁽¹⁾	Including our preferred stock as equity.

The below table summarizes our December 2024 quarter term debt issuance and repurchase/repayment activity:

All amounts in $000’s	Principal	Coupon	Maturity
Debt Issuances
Prospect Capital InterNotes®	$41,759	6.625% – 7.75%	January 2027 – December 2034
Total Debt Issuances	$41,759

Debt Repurchases/Repayments
Prospect Capital InterNotes®	$1,187	2.25% – 6.63%	May 2026 – December 2051
2026 Notes	$11,443	3.706%	January 2026
Total Debt Repurchases/Repayments	$12,630

Net Debt Repurchases/Repayments	$29,129

We currently have four separate unsecured debt issuances aggregating approximately $1.1 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At December 31, 2024, $644 million of program notes were outstanding with laddered maturities through March 2052.

At December 31, 2024 our weighted average cost of unsecured debt financing was 4.49%, an increase of 0.07% from September 30, 2024, and an increase of 0.34% from December 31, 2023.

We have raised significant capital from our existing $2.25 billion perpetual preferred stock offering programs. The preferred stock provides Prospect with a diversified source of programmatic capital without creating scheduled maturity risk due to the perpetual term of multiple preferred tranches.

DIVIDEND REINVESTMENT PLAN

We have adopted a dividend reinvestment plan (also known as our “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.

HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN

Shares held with a broker or financial institution

Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the “Prospect Capital Corporation DRIP through DTC” that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker’s own “synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.

Shares registered directly with our transfer agent

If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, Equiniti Trust Company, LLC by calling (888) 888-0313 or by mailing Equiniti Trust Company LLC, PO Box 10027, Newark, New Jersey 07101.

EARNINGS CONFERENCE CALL

Prospect will host an earnings call on Tuesday, February 11, 2025 at 9:00 a.m. Eastern Time. Dial 888-338-7333. For a replay after February 11, 2025 visit www.prospectstreet.com or call 877-344-7529 with passcode 2146236.

PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data)

	December 31, 2024		June 30, 2024
	(Unaudited)		(Audited)
Assets
Investments at fair value:
Control investments (amortized cost of $3,323,998 and $3,280,415, respectively)	$	3,772,329	$	3,872,575
Affiliate investments (amortized cost of $11,735 and $11,594, respectively)	20,212		18,069
Non-control/non-affiliate investments (amortized cost of $3,689,972 and $4,155,165, respectively)	3,340,387		3,827,599
Total investments at fair value (amortized cost of $7,025,705 and $7,447,174, respectively)	7,132,928		7,718,243
Cash and cash equivalents (restricted cash of $1,508 and $3,974, respectively)	59,760		85,872
Receivables for:
Interest, net	18,428		26,936
Other	1,914		1,091
Deferred financing costs on Revolving Credit Facility	21,180		22,975
Prepaid expenses	641		1,162
Due from broker	—		734
Due from Affiliate	4		79
Total Assets	7,234,855		7,857,092
Liabilities
Revolving Credit Facility	301,522		794,796
Public Notes (less unamortized discount and debt issuance costs of $10,075 and $12,433, respectively)	966,197		987,567
Prospect Capital InterNotes® (less unamortized debt issuance costs of $9,299 and $7,999, respectively)	634,535		496,029
Convertible Notes (less unamortized debt issuance costs of $166 and $649, respectively)	156,002		155,519
Due to Prospect Capital Management	50,700		58,624
Interest payable	23,214		21,294
Dividends payable	20,076		25,804
Due to Prospect Administration	5,070		5,433
Accrued expenses	4,028		3,591
Due to broker	2,762		10,272
Other liabilities	199		242
Total Liabilities	2,164,305		2,559,171
Commitments and Contingencies
Preferred Stock, par value $0.001 per share (847,900,000 and 647,900,000 shares of preferred stock authorized, with 80,000,000 and 80,000,000 as Series A1, 80,000,000 and 80,000,000 as Series M1, 80,000,000 and 80,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 80,000,000 and 80,000,000 as Series A3, 80,000,000 and 80,000,000 as Series M3, 90,000,000 and 80,000,000 as Series A4, 90,000,000 and 80,000,000 as Series M4, 20,000,000 and 20,000,000 as Series AA2, 20,000,000 and 20,000,000 as Series MM2, 90,000,000 and 0 as Series A5, and 90,000,000 and 0 as Series M5, each as of December 31, 2024 and June 30, 2024; 27,968,443 and 28,932,457 Series A1 shares issued and outstanding, 1,309,907 and 1,788,851 Series M1 shares issued and outstanding, 0 and 0 Series M2 shares issued and outstanding, 0 and 0 Series AA1 shares issued and outstanding, 0 and 0 Series MM1 shares issued and outstanding, 163,000 and 164,000 Series A2 shares issued and outstanding, 5,251,157 and 5,251,157 Series A shares issued and outstanding, 24,476,826 and 24,810,648 Series A3 shares issued and outstanding, 2,732,317 and 3,351,101 Series M3 shares issued and outstanding, 2,192,884 and 1,401,747 Series M4 shares issued and outstanding, 7,012,458 and 3,766,166 Series A4 issued and outstanding, 0 and 0 Series AA2 shares issued and outstanding, 0 and 0 Series MM2 shares issued and outstanding, 0 and 0 Series A5 issued and outstanding, and 0 and 0 Series M5 issued and outstanding as of December 31, 2024 and June 30, 2024, respectively) at carrying value plus cumulative accrued and unpaid dividends	1,630,514		1,586,188
Net Assets Applicable to Common Shares	$	3,440,036	$	3,711,733
Components of Net Assets Applicable to Common Shares and Net Assets, respectively
Common stock, par value $0.001 per share (1,152,100,000 and 1,352,100,000 common shares authorized; 438,851,578 and 424,846,963 issued and outstanding, respectively)	439		425
Paid-in capital in excess of par	4,267,636		4,208,607
Total distributable (loss)	(828,039)		(497,299)
Net Assets Applicable to Common Shares	$	3,440,036	$	3,711,733
Net Asset Value Per Common Share	$	7.84	$	8.74

PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited)

	Three Months Ended December 31,				Six Months Ended December 31,
	2024		2023		2024		2023
Investment Income
Interest income (excluding payment-in-kind (“PIK”) interest income):
Control investments	$	57,386	$	41,690	$	109,768	$	90,816
Non-control/non-affiliate investments	87,159		105,749		182,069		212,105
Structured credit securities	4,054		8,882		8,233		25,569
Total interest income (excluding PIK interest income)	148,599		156,321		300,070		328,490
PIK interest income:
Control investments	13,884		26,834		33,594		50,951
Non-control/non-affiliate investments	6,315		11,476		19,749		17,637
Total PIK Interest Income	20,199		38,310		53,343		68,588
Total interest income	168,798		194,631		353,413		397,078
Dividend income:
Control investments	4,387		—		4,387		227
Affiliate investments	—		—		141		1,307
Non-control/non-affiliate investments	2,574		1,340		4,843		2,865
Total dividend income	6,961		1,340		9,371		4,399
Other income:
Control investments	8,416		11,616		15,383		41,361
Non-control/non-affiliate investments	1,291		3,355		3,607		4,349
Total other income	9,707		14,971		18,990		45,710
Total Investment Income	185,466		210,942		381,774		447,187
Operating Expenses
Base management fee	37,069		39,087		75,675		78,376
Income incentive fee	13,632		18,325		29,312		43,942
Interest and credit facility expenses	37,979		40,044		77,739		80,637
Allocation of overhead from Prospect Administration	5,708		12,252		11,416		14,365
Audit, compliance and tax related fees	80		479		1,800		1,496
Directors’ fees	150		131		300		266
Other general and administrative expenses	4,417		3,697		9,224		5,566
Total Operating Expenses	99,035		114,015		205,466		224,648
Net Investment Income	86,431		96,927		176,308		222,539
Net Realized and Net Change in Unrealized Gains (Losses) from Investments
Net realized gains (losses)
Control investments	3		—		6,370		(147)
Non-control/non-affiliate investments	(46,656)		123		(153,393)		(207,219)
Net realized gains (losses)	(46,653)		123		(147,023)		(207,366)
Net change in unrealized gains (losses)
Control investments	30,419		(99,441)		(143,829)		(117,235)
Affiliate investments	(1,446)		1,751		2,002		2,588
Non-control/non-affiliate investments	(69,053)		(27,051)		(22,020)		188,535
Net change in unrealized gains (losses)	(40,080)		(124,741)		(163,847)		73,888
Net Realized and Net Change in Unrealized Gains (Losses) from Investments	(86,733)		(124,618)		(310,870)		(133,478)
Net realized gains (losses) on extinguishment of debt	236		(53)		484		(144)
Net Increase (Decrease) in Net Assets Resulting from Operations	(66)		(27,744)		(134,078)		88,917
Preferred Stock dividends	(26,228)		(24,070)		(53,385)		(47,221)
Net gain (loss) on redemptions of Preferred Stock	(906)		378		1,398		879
Gain (loss) on Accretion to Redemption Value of Preferred Stock	(3,793)		—		(9,997)		—
Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders	$	(30,993)	$	(51,436)	$	(196,062)	$	42,575

PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE (in actual dollars)

	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
Per Share Data
Net asset value per common share at beginning of period	$	8.10		$	9.25		$	8.74		$	9.24
Net investment income⁽¹⁾	0.20			0.24			0.41			0.54
Net realized and change in unrealized gains (losses)⁽¹⁾	(0.21)			(0.30)			(0.74)			(0.33)
Net increase (decrease) from operations	(0.01)			(0.06)			(0.33)			0.21
Distributions of net investment income to preferred stockholders	(0.06)		₍₄₎	(0.07)		₍₃₎	(0.12)		₍₄₎	(0.12)		₍₃₎
Distributions of capital gains to preferred stockholders	—		₍₄₎	—		₍₃₎	—		₍₄₎	—		₍₃₎
Total distributions to preferred stockholders	(0.06)			(0.07)			(0.12)			(0.12)
Net increase (decrease) from operations applicable to common stockholders	(0.07)			(0.13)			(0.45)			0.10		₍₇₎
Distributions of net investment income to common stockholders	(0.15)		₍₄₎	(0.18)		₍₃₎	(0.33)		₍₄₎	(0.34)		₍₃₎
Return of capital to common stockholders	—		₍₄₎	—		₍₃₎	—		₍₄₎	(0.02)		₍₃₎₍₆₎
Total distributions to common stockholders	(0.15)			(0.18)			(0.33)			(0.36)
Common stock transactions⁽²⁾	(0.04)			(0.02)			(0.13)			(0.06)
Net asset value per common share at end of period	$	7.84		$	8.92		$	7.84	₍₇₎	$	8.92	₍₇₎

⁽¹⁾	Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses (gains) from extinguishment of debt and realized gains (losses) from the repurchases and redemptions of preferred stock.

⁽²⁾	Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.

⁽³⁾	Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2024.

⁽⁴⁾	Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2025.

⁽⁵⁾	Diluted net decrease from operations applicable to common stockholders was $0.07 for the three months ended December 31, 2024. Diluted net decrease from operations applicable to common stockholders was $0.13 for the three months ended December 31, 2023. Diluted net decrease from operations applicable to common stockholders was $0.45 for the six months ended December 31, 2024. Diluted net increase from operations applicable to common stockholders was $0.10 for the six months ended December 31, 2023.

⁽⁶⁾	The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2023 and our Form 10-Q filing for December 31, 2023. Certain reclassifications have been made in the presentation of prior period amounts.

⁽⁷⁾	Does not foot due to rounding.

MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA, NET LEVERAGE AND INTERNAL RATE OF RETURN

Middle-Market Loan Portfolio Company Weighted Average Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Loan Portfolio Company Weighted Average EBITDA (“Middle-Market Portfolio EBITDA”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal.

Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC’s middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC’s investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, rated secured structured notes, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC’s exposure to the interest payment and principal repayment risk of PSEC’s middle-market loan portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.

Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC’s middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within PSEC’s middle-market loan portfolio.

These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and other nonrecurring transaction expenses.

Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.

Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

PRIMARY ORIGINATION STRATEGIES

Lending to Companies – We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.

Lending to Companies and Purchasing Controlling Equity Positions in Such Companies – This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in operating companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers and the opportunity for management to continue on in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.

Purchasing Controlling Equity Positions and Lending to Real Estate Companies – We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing and senior living. NPRC seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition. Additionally, NPRC makes investments in rated secured structured notes (primarily debt of structured credit). NPRC also purchases loans originated by certain consumer loan facilitators. It purchases each loan in its entirety (i.e., a “whole loan”). The borrowers are consumers, and the loans are typically serviced by the facilitators of the loans.

Investing in Structured Credit – We make investments in structured credit, often taking a significant position in subordinated structured notes (equity). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.

About Prospect Capital Corporation

Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

For additional information, contact:

Grier Eliasek, President and Chief Operating Officer
grier@prospectcap.com
Telephone (212) 448-0702

The MIL Network –

February 11, 2025

MIL-OSI: F&M Bank Welcomes Peter Schork as Market President for Toledo, OH & Birmingham, MI

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, Feb. 10, 2025 (GLOBE NEWSWIRE) — F&M Bank (“F&M”), an Archbold, Ohio-based bank owned by Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) announced that Peter Schork has joined F&M as Market President of the Toledo, Ohio and Birmingham, Michigan markets.

Peter brings over 25 years of banking and financial experience to F&M. Prior to joining the Company, he served as the Ann Arbor President for Oxford Bank and co-founded the Ann Arbor State Bank serving as its President and CEO. In addition to his community bank experience, Peter was the CFO at Catalyst Commercial Real Estate, and the President of a Michigan based title, mortgage, and real estate company. In addition to his business experience, Peter is a proud supporter of various community organizations. Currently he serves on the Michigan Theater Board of Trustees, is a member of the Ray and Eleanor Cross Foundation and the Kiwanis Club of Ann Arbor and is a Board Member and Treasurer for the Homeless/Unhoused Mission. Peter holds a Master of Business Administration (M.B.A.) with a specialization in Finance from Eastern Michigan University.

Company Contact: Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Investor and Media Contact: Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e11179be-cf20-449e-9416-ca1e8ff1fd2f

The MIL Network –

February 11, 2025

MIL-OSI New Zealand: Housing Market Trends – Intriguing year ahead for the housing market – Quality Valuation

Source: Quality Valuation (QV)

One month in and QV operation manager James Wilson says 2025 is already shaping up to be an intriguing year for the housing market – though you wouldn’t necessarily know it from looking at our latest figures.

The latest QV House Price Index shows that residential property values have once again increased slightly, edging upward by an average of 1.3% nationally in the January quarter. The average home is now worth $913,567, which is just 1.3% less than the same time last year and 14.1% below the market’s peak in late 2021.

“On the surface, we’re seeing a continuation in 2025 of the overwhelmingly flat theme that we saw throughout much of last year. This is to be expected, given the economic factors at play – namely high interest rates and credit constraints, sustained weakness in the labour market, and an oversupply of properties available for sale,” Mr Wilson said.

“However, we are also seeing less home value reductions now and what little growth there is does appear to be trending ever so slightly upward. At the same time, mortgage rates are falling and property sales volumes are building, which could pave the way for more substantial growth later this year. That won’t happen overnight, of course, but we will be actively monitoring this space with interest – as I’m sure many sellers, purchasers and investors will be throughout 2025.”

Of the main urban areas QV monitors across New Zealand Aotearoa, only three have recorded modest reductions this quarter – Whangarei (-0.3%), Hastings (-0.3%), and Queenstown (-1.5%). Otherwise, Auckland (1.4%), Hamilton (2.3%), Tauranga (1.4%), Napier (2.9%), Dunedin (2.3%) and especially Invercargill (3.8%) all recorded above-average increases in home value throughout the three months to the end of January 2025.

“Value strengthening across these main urban areas throughout the summer has propped up the nationwide results to some degree, with increased competition amongst buyers helping to stabilise and slowly strengthen home values,” said Mr Wilson.

However, he pointed out that there had also been an “uptick” this year in the number of properties available for sale across most centres nationwide, providing buyers with ample choice.

“Summer is traditionally the peak season for buying and selling, so it’s unsurprising to see more buyers and sellers in the market, especially as economic circumstances improve. What will be interesting to see is how long it takes for this excess stock to be absorbed, because that’s when we will see demand start to push prices up in a more substantial way. Once again, this will not happen overnight, but further interest rate reductions will certainly quicken the process.”

“For now, the cost of borrowing remains relatively restrictive, and the economy and therefore job market is still doing it tough. Investors and owner-occupiers are showing increasing interest in the property market but remain cautious overall, while first-home buyers are continuing to make up a larger proportion of the market in the meantime,” Mr Wilson concluded.

Download a high resolution version of the latest QV value map here. (ref. https://qv.us9.list-manage.com/track/click?u=7ea78a69a1f7991bf60632008&id=1c4137c6c2&e=12a3161b1f )

Northland

It has been a relatively flat start to the year for Northland’s housing market.

Home values eased downward by 0.2% across the wider region in January. And even on a longer timescale of a quarter, home values are only 0.6% higher than they were three months ago.

The average home value in the Far North is now $686,294, which is 2.8% lower than the same time last year. In Whangarei, the average value is $716,289, which is 3% less than the same time last year. The average home in Kaipara is worth $842,269, down 1.1% over the last 12 months.

Auckland

All bar one of the Super City’s seven former local council areas recorded a small rise in average home value this quarter.

The largest gains occurred this quarter on the North Shore (2.6%), in Auckland’s central suburbs (1.8%) and in Manukau (1.8%). Papakura was the lone exception; its average home value reduced by 0.8% to $880,173.

Taken as a whole, the region’s average home value increased by 1.4% throughout the January quarter to $1,245,951 – up slightly from the 1.3% quarterly growth recorded back in December. The average home in the Auckland region is now worth 3.5% less than the same time last year, and 19.2% less than the market’s peak in late 2021. The one-month change was just 0.1%.

Local QV registered valuer Hugh Robson said activity levels still remained relatively low, despite there being a growing number of properties available for purchase.

“January has tended to be a very quiet month, possibly due to the summer holidays. Reports from agents have been mixed – some say it is pretty dead, while others think it’s slowly picking up. We should have a better idea of the market by the end of February,” he said.

Bay of Plenty

It hasn’t been the hottest start to summer for Tauranga’s housing market.

Home values have increased by an average of just 1.4% this quarter. The city’s average home value is now $1,017,097, which is 1.1% less than the same time last year.

Meanwhile, average home values have also increased this quarter in Rotorua (0.6%), Whakatane (1%) and especially Opotiki (2.2%).

Waikato

The housing market remains flat-to-gently-rising across the wider Waikato region.

Home values have lifted by 1.2% on average this quarter, with Thames-Coromandel (3.1%), Hauraki (2.7%), Hamilton (2.1%) and South Waikato (5.9%) performing above average.

However, a number of districts have recorded average home value reductions this quarter, including Matamata-Piako (-0.2%), Waipa (-1.8%), Otorohanga (-1.5%), Waitomo (-0.1%) and Taupo (-2.1%).

Taranaki

‘Flat’ remains the best word to describe the current home value trend in Taranaki.

Although values have increased modestly across the region by 1.3% this quarter, there was no growth on average during the month of January itself.

New Plymouth’s average home value is now $720,831, which is 0.7% higher than the same time last year. South Taranaki and Stratford are both still showing negative home value growth annually of 0.3% and 2.3% respectively.

Hawke’s Bay

The twin cities of Napier and Hastings have recorded very different quarters.

The average home value increased by 2.9% to $753,155 this quarter in Napier, and it reduced by 0.3% to $771,382 this quarter in Hastings.

Annually, home values in Napier are now 1% lower on average, and they are 3.2% less than the same time last year in Hastings.

Palmerston North

Home values continue to gently rise in Palmerston North.

January marked Palmerston North’s fourth month of growth in a row. The city’s average home value increased by 1.1% this quarter to reach $638,441.

That figure is 1.1% lower than at the same time last year and 17.7% less than the local housing market’s peak three years ago.

Wairarapa

Home values have gently fallen across the Wairarapa region during the month of January.

Masterton’s average home value decreased by 1.1% to $574,342 last month. At the same time, Carterton’s average home value also decreased by 0.6% to $629,499, and the average home value in South Wairarapa reduced by 1.1% to $771,529.

Wellington

Home values remain relatively static in the Wellington region.

The average home increased in value by just 0.5% throughout the three months to the end of January 2025 to reach $841,903. That figure is now 3% lower than the same time last year, and 23% lower than the market’s peak in late 2021.

Breaking the region down by local council area, the average home values in Kapiti Coast (3%) and Hutt City (0.9%) experienced some growth this quarter. Porirua (-0.3%) and Upper Hutt (-0.6%) recorded small quarterly losses, while Wellington City broke even.

QV senior consultant David Cornford said the region continued to face challenges. “While interest rates have decreased, other market forces such as high stock levels, increasing unemployment, lower net migration, and job insecurity is resulting in a largely soft market for the time being.”

“Wellington ended the year with a significant number of unsold properties. Now we are seeing a high number of properties being brought to the market in the New Year, increasing stock levels further. This is providing buyers with plenty of choice, reaffirming the fact that it remains a buyers’ market. Buyers generally have a lack of urgency and continue to take a cautious approach in their decisions,” Mr Cornford concluded.

Nelson

Nelson’s average home value has increased slightly for four consecutive months now.

Our latest figures show that the city’s average home increased in value by 1.2% this quarter to reach $789,580, including by 1% in the month of January itself. That average value is now 2% higher than the same time last year.

It is slightly more growth than in our previous QV House Price Index, which showed values grew by an average of 0.7% in the December quarter and by 0.2% in December itself.

West Coast

Housing figures on the West Coast continue to fluctuate from month to month as a result of low sales volumes.

However, on a longer time scale of a year, it is clear to see that home values in the region continue to hold up better than anywhere else. Average home values in Buller ($390,710), Grey ($461,806), and Westland ($470,108) are now 10.5%, 12.4%, and 8.5% higher annually respectively.

This is compared to a 1.3% annual decline in average home value nationally.

Canterbury

Christchurch’s average home value has increased slightly for the fourth straight month.

The city recorded a small 1.3% rise in average home value in the January quarter to reach $769,857. That figure is now 0.6% higher than the same time last year.

The average home value also lifted 1.3% to $717,399 this quarter in Waimakariri. Hurunui ($640,980) and Selwyn’s ($842,275) average home values also recorded smaller increases of 0.2% and 0.4% respectively.

Local QV senior consultant Olivia Brownie described these latest figures as being a “blend of stability and modest growth”. “As expected, we saw a dip in sales over the holiday period, yet a slight increase in the overall average home value,” she said.

“We anticipate a bit more growth over the summer months, attributed to factors such as lower mortgage rates and increased summer buyer activity. However, we still face market challenges and balancing growth prospects with prevailing economic challenges.”

Meanwhile, across the wider Canterbury region this quarter, the average home value in Ashburton increased by 0.8% to $569,159 and decreased by 1% to $530,585 in Timaru.

Otago

Residential property values also remain relatively stable across the Otago region.

Our latest QV House Price Index shows values in the region increased on average by just 0.5% this quarter. Central Otago (3.3%) and Dunedin (2.3%) performed above average; Clutha (-2%), Waitaki (-0.3%) and Queenstown (-1.5%) performed below average.

In the region’s largest city, Dunedin, the average home value is now $651,130, following three straight months of modest growth. The average home is now worth 2.8% more than the same time last year.

“The property market in Dunedin has been relatively stable compared to other New Zealand cities, showing resilience amid broader national trends,” said local QV registered valuer Rebecca Johnston. “It’s continues to be a buyers’ market with stable – albeit minimal – growth.”

“Demand appears to have weakened for higher density new build two-bedroom townhouses within the last several months, indicating that this market is currently somewhat saturated presently in Dunedin. Developers have recently introduced two-yearly rental guarantees, which have already been established in higher density townhouse developments areas elsewhere in the country.”

Queenstown

The average home value in Queenstown has experienced another small dip.

Our latest figures show that the average value reduced by 1.5% this quarter to $1,826,298. It follows a similar reduction of 1.4% in the three months to the end of December.

However, the tourist town’s average home value is still 1.1% higher than the same time last year.

Invercargill

Invercargill’s average home value has crossed the $500,000 mark for the first time.

Our latest QV House Price Index shows that the city’s average home value has increased this quarter by 3.8% to $500,286. That figure is 7.2% higher than the same time last year and now sits 0.4% above the local market’s previous peak in 2022.

Local QV registered valuer Andrew Ronald commented: “Invercargill’s housing market continues to demonstrate surprising resilience compared to New Zealand’s other main urban areas. I credit that to the strong local economy, which has been less affected by the current strong economic headwinds, and to the relatively low cost of home ownership here by national standards.”

“Looking ahead, I expect local home values will continue to slowly grow throughout 2025, despite relatively high interest rates and credit constraints continuing to put a dampener on things in the short and medium term.”

MIL OSI New Zealand News –

February 11, 2025
MIL-OSI USA: Governor Newsom announces appointments 2.7.25

Source: US State of California 2

Feb 7, 2025

SACRAMENTO – Governor Gavin Newsom today announced the following appointments:

Khalil “KC” Mohseni, of Sacramento, has been appointed Commissioner of the California Department of Financial Protection and Innovation, where he has been the Chief Deputy Director since 2023. Mohseni was the Chief Operating Officer at the State Controller’s Office from 2022 to 2023. He was the Deputy Director of Administration at the California Department of Housing and Community Development from 2020 to 2022. Mohseni was a Project Director of Business at the Business, Consumer Services, and Housing Agency from 2018 to 2019. He was the Chief Fiscal officer at the Board of State and Community Corrections from 2015 to 2018. Mohseni earned a Juris Doctor degree from the University of California, Davis School of Law, and a Bachelor of Arts degree in Political Science from the University of California, Irvine. This position requires Senate confirmation, and the compensation is $224,868. Mohseni is registered without party preference.

Kelly Madsen, of Elk Grove, has been appointed Director of Enterprise Risk Management and Compliance at the California Housing Finance Agency, where she has been the Deputy Director of Innovation and Special Initiatives since 2024. Madsen was a Business Manager at the Waverley Street Foundation in 2023. She was the Director of Scheduling at the Office of Governor Gavin Newsom from 2021 to 2022. Madsen was a Digital Advertising Consultant and Operations Manager at Psyberware from 2017 to 2021. She was a Product Data Analyst at Viator from 2015 to 2018. Madsen held two positions at the California Department of Education, Office of State Superintendent of Public Instruction Tom Torlakson from 2011 to 2014, including Strategic Initiatives Coordinator and Policy Advisor from 2012 to 2014 and Director of Scheduling from 2011 to 2012. She was the Director of Scheduling at the Office of Governor Arnold Schwarzenegger from 2008 to 2010. Madsen earned a Bachelor of Arts degree in Political Science from the University of California, Davis. This position does not require Senate confirmation, and the compensation is $152,988. Madsen is a Democrat.

Adam P. Romero, of Los Angeles, has been appointed Chief Deputy Director at the Department of Industrial Relations. Romero has been Deputy Director of Executive Programs at the California Civil Rights Department since 2020. He was an Adjunct Professor at University of California, Los Angeles School of Law from 2017 to 2020. Romero held several roles at The Williams Institute at University of California, Los Angeles School of Law from 2014 to 2020, including Director of Legal Scholarship and Federal Policy, Arnold D. Kassoy Scholar of Law, and Senior Counsel. He was Senior Associate at Wilmer Cutler Pickering Hale and Dorr from 2010 to 2014. Romero served as a Law Clerk for the Honorable Judge Shira A. Scheindlin at the U.S. District Court, Southern District of New York from 2009 to 2010 and for the Honorable Judge M. Margaret McKeown at the U.S. Court of Appeals, Ninth Circuit from 2008 to 2009. He is a member of the Chancery Club of Los Angeles. Romero earned a Juris Doctor degree from Yale Law School and a Bachelor of Arts degree in Government from Cornell University. This position does not require Senate confirmation, and the compensation is $190,008. Romero is a Democrat.

Janus Norman, of Sacramento, has been appointed to the California Workforce Development Board. Norman has been President and Chief Executive Officer of the California Broadband and Video Association since 2022. He was Senior Vice President at the California Medical Association from 2013 to 2022. Norman was a Field Representative at the American Federation of State, County and Municipal Employees – AFL-CIO from 2010 to 2013. He was a Government Analyst at the Judicial Council of California from 2008 to 2010. Norman was a Senior Consultant for the California State Assembly from 2002 to 2008. He earned a Master of Business Administration degree from the University of Southern California and a Bachelor of Arts degree in Communication Studies from California State University, Sacramento. This position does not require Senate confirmation, and the compensation is $100 per diem. Norman is a Democrat.

Hala Hijazi, of San Francisco, has been appointed to the California Workforce Development Board. Hijazi has been the Founder and Chief Operating Officer at Impact Strategies-SF since 2014. She was a Business Development Manager in the Infrastructure and Labor Division at the San Francisco Public Utilities Commission from 2007 to 2014. Hijazi was a Project Director for the San Francisco Department of Public Works from 2004 to 2007. She was Deputy Director of Marketing for the Mayor’s Office of Economic Development and Special Assistant to the Mayor at the Office of San Francisco Mayor Willie L. Brown, Jr. from 1997 to 2004. Hijazi is the Founder of Professionals VIP Network/Impact Council and San Francisco Bay Area AMEMSA Advisory Board and Muslim Impact Council, Chair of the Board of Directors at Reproductive Freedom for All California PrivacyPAC and Director of the San Francisco Chapter of the Truman National Security Project. She is a Member of the Board of Directors at the American Red Cross, Northern California Coastal Region and Interfaith Center at the Presidio, an Advisor to the Human Rights Studies Program at University of California, Davis and a Member of the Regional Advisory Council for DignityMoves, Democratic National Committee’s Finance Committee, San Francisco Police Department Police Chief’s Community Policing Advisory Forum, and the Leadership Circle at Foreign Policy for America. She earned a Bachelor of Arts degree in Sociology from University of California, Davis. This position does not require Senate confirmation, and the compensation is $100 per diem. Hijazi is a Democrat.

Charles “Chuck” Poss III, of Huntington Beach, has been appointed to the California Apprenticeship Council. Poss has been the President at Earth Construction and Mining since 2004. He was the Chief Estimator and Senior Project Manager at C.W. Poss Inc. from 1980 to 2004. Poss earned a Bachelor of Science degree in Construction Engineering from Purdue University. This position does not require Senate confirmation, and the compensation is $100 per diem. Poss is a Republican.

Alejandro “Alex” Beltran, of Antelope, has been appointed to the California Apprenticeship Council. Beltran has been the Director of Training at the Finishing Trades Institute of Northern California and Nevada since 2008. He was a Journey Worker at Sacramento Glazing from 1997 to 2008. Beltran is a member of the Glaziers Local Union 767, District Council 16 International Union of Partners and Allied Trades. This position does not require Senate confirmation, and the compensation is $100 per diem. Beltran is a Democrat.

Adhitya “Adhi” Nagraj, of Oakland, has been reappointed to the California Housing Partnership Corporation, where he has served since 2016. Nagraj has been the Chief Development Officer at McCormack Baron Salazar since 2022. He was Senior Vice President at McCormack Baron Salazar from 2019 to 2022. Nagraj was the San Francisco Director at SPUR from 2018 to 2019. He was the Director of Real Estate Development at BRIDGE Housing Corporation from 2013 to 2018. Nagraj earned a Juris Doctor degree from Columbia Law School. This position requires Senate confirmation, and there is no compensation. Nagraj is a Democrat.

Pamela Daniels, of El Granada, has been reappointed to the Board of Chiropractic Examiners, where she has served since 2021. Daniels has been a Chiropractor at Daniels Chiropractic Inc. since 2003, where she is also the Owner and Founder. Daniels earned a Doctor of Chiropractic degree from Palmer College of Chiropractic West and a Master of Science degree in Clinical Neuroscience from the Carrick Institute. She is a member of the California Chiropractic Association. This position does not require Senate confirmation, and the compensation is $100 per diem. Daniels is a Democrat.

Sergio F. Azzolino, of San Francisco, has been appointed to the Board of Chiropractic Examiners, where he previously served from 2012 to 2021. Azzolino has been the Clinic Director of Azzolino Chiropractic Neurology & Integrative Wellness since 1995 and an Assistant Professor of Clinical Neurology at the Carrick Institute since 2009. He is President of the American Board of Chiropractic Neurology. Azzolino earned a Doctor of Chiropractic degree from Life Chiropractic College West. This position does not require Senate confirmation, and the compensation is $100 per diem. Azzolino is registered without party preference.

Press Releases, Recent News

Recent news

Feb 7, 2025

News SACRAMENTO – Governor Gavin Newsom today announced that he has signed the following bills: SBX1-1 by Senator Scott Wiener (D-San Francisco) – Budget Act of 2024.SBX1-2 by Senator Scott Wiener (D-San Francisco) – Budget Act of 2024. A signing message can be found…

Feb 7, 2025

News LOS ANGELES — Governor Gavin Newsom, LA28 Chairperson and President Casey Wasserman, Dodgers Chairman Mark Walter, and NBA legend Earvin “Magic” Johnson have teamed up through LA Rises to release a new PSA warning fire victims about predatory real estate…

Feb 7, 2025

News What you need to know: Governor Newsom has made the recovery for Los Angeles his top priority – directing a whole-of-government response to support communities and survivors. LOS ANGELES – In the one month following the Los Angeles firestorms, Governor Gavin…

MIL OSI USA News –

February 9, 2025
MIL-OSI Security: Dumfries man pleads guilty to nearly $150,000 fraud of COVID relief program

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

ALEXANDRIA, Va. – A Dumfries man pled guilty today to wire fraud in connection with his fraudulent application for and receipt of funds through a COVID-19 relief program.

According to court documents, in 2021, Kingsley Apenteng, 40, was the registered owner of Pioneers Real Estate LLC (Pioneers). From at least 2017 through 2021, Pioneers had no employees, transacted no business, and was completely inactive.

In March 2021, Apenteng completed and signed a loan application seeking $149,740.00 for Pioneers through the Paycheck Protection Program (PPP), a COVID-19 relief program intended to provide loans to certain businesses to help them retain their employees or stay afloat during the pandemic. Apenteng falsely claimed on the application that, during all of 2019 and the first quarter of 2020, Pioneers had nine employees and paid them, on average, a combined payroll of $59,896 per month. Apenteng falsely certified on the application that the PPP loan funds he was requesting would be used to pay the wages of those employees.

Apenteng prepared fraudulent tax return forms to support the PPP application. Apenteng filled out five IRS Forms 941 for Pioneers, one for each quarter of 2019 and the first quarter of 2020. To make these forms appear legitimate, Apenteng falsely claimed that they had been prepared by a professional tax preparer. Apenteng wrote the name of a real tax preparer, forged that person’s digital signature, and entered that person’s business information.

Apenteng also fraudulently altered a bank account statement. After downloading a PDF of a monthly statement for Pioneers’ bank account, Apenteng used a computer program to alter the date and transaction information on the statement to make it appear that Pioneers paid payroll to employees during the first quarter of 2020.

On or around March 10, 2021, Apenteng caused the fraudulent PPP loan application, tax forms, and bank statement to be electronically submitted to a lender and to the Small Business Administration (SBA). Based on the false claims in those fraudulent documents, Apenteng’s PPP loan application was approved and Apenteng received PPP loan funds in the amount of $149,740.00 on April 28, 2021.

On Nov. 2, 2021, Apenteng submitted a loan forgiveness application to the SBA for the Pioneers PPP loan. Apenteng again falsely claimed that Pioneers had nine employees and claimed that he spent all the PPP loan funds on their wages. On Nov. 9, 2021, the SBA approved Apenteng’s loan forgiveness application and reimbursed the lender for the full amount of the loan. Apenteng never repaid any portion of the PPP loan.

Apenteng is scheduled to be sentenced on May 6 and faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.

Assistant U.S. Attorney Jordan Harvey is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-21.

MIL Security OSI –

February 8, 2025
MIL-OSI USA: PSA: Earvin “Magic” Johnson warns Los Angeles fire victims about property predators

Source: US State of California 2

Feb 7, 2025

LOS ANGELES — Governor Gavin Newsom, LA28 Chairperson and President Casey Wasserman, Dodgers Chairman Mark Walter, and NBA legend Earvin “Magic” Johnson have teamed up through LA Rises to release a new PSA warning fire victims about predatory real estate speculators, and highlighting protections under the Governor’s recent executive order. The order bans unsolicited, undervalued offers for three months in fire-affected communities to prevent opportunistic investors from exploiting families in crisis.

“Too many of you are getting hit up out of the blue by people making unasked-for, lowball offers on your property. You do not need to take these offers. This is your land, and you know what it’s worth.”

“Those kinds of offers are currently illegal, because of Governor Gavin Newsom’s executive order – and if you get one, you can report it to law enforcement agencies, like the LA District Attorney or the California Attorney General.”

Earvin “Magic” Johnson

The PSA, which can be downloaded here for TV networks to air statewide, features Magic Johnson urging homeowners to beware of predatory investors and know their rights under the Governor’s new order. In the video, Johnson emphasizes the importance of protecting communities from displacement and ensuring families receive fair treatment as they navigate the recovery process.

LA Rises, a unified recovery initiative co-chaired by Johnson, brings together private sector leaders to support rebuilding efforts in Los Angeles. The initiative also supports unified communication efforts to arm Angelenos with up-to-date, factual information, timelines for rebuilding, and available resources.

Governor’s order tackles predators

The Governor’s executive order, issued earlier this month, bars opportunist and predatory investors from making unsolicited undervalue offers to those impacted by the firestorms to buy their land, taking advantage by offering fast cash for destroyed property. Specifically it:

✅ Makes unsolicited, undervalued offers to buy property unlawful for three months in fire-affected zip codes.
✅ Directs the Department of Real Estate and other agencies to provide public resources on homeowners’ rights and enforcement measures.
✅ Enables prosecution of violators by the Attorney General and local district attorneys.

Report low-ball offers

California law makes it a misdemeanor to violate a Governor’s order during a state of emergency, which can be prosecuted by the Attorney General or local district attorneys. To protect yourself and others from real estate speculation, contact your law enforcement agencies:

California Attorney General’s Office:
Violations can be reported at oag.ca.gov/report
Phone: (800) 952-5225

LA District Attorney’s Office:
Phone: (800) 380-3811

To submit a complaint, visit the California Department of Real Estate’s LA WildFire Updates page

Californians can go to CA.gov/LAfires – a hub for information and resources from state, local and federal government.

Governor Newsom has issued a number of executive orders in response to the Los Angeles firestorms to help aid in rebuilding and recovery, create more temporary housing, and protect survivors from exploitation and price gouging.

Press Releases, Recent News

Recent news

Feb 7, 2025

News What you need to know: Governor Newsom has made the recovery for Los Angeles his top priority – directing a whole-of-government response to support communities and survivors. LOS ANGELES – In the one month following the Los Angeles firestorms, Governor Gavin…

Feb 6, 2025

News What you need to know: Governor Newsom signed an executive order to launch key initiatives to continue adapting to future extreme firestorm events in urban communities and leading the way to build a more resilient state. Sacramento, California – Adding to…

Feb 6, 2025

News What you need to know: Building on yesterday’s positive meetings on Capitol Hill and with President Trump, Governor Newsom continued his bipartisan outreach in meetings with House and Senate leadership that focused on securing critical disaster aid for the…

MIL OSI USA News –

February 8, 2025
MIL-OSI Economics: Overall Housing Sentiment Ticks Higher Despite Consumers’ Growing Affordability Concerns
Source: Fannie Mae

WASHINGTON, DC – The Fannie Mae (FNMA/OTCQB) Home Purchase Sentiment Index® (HPSI) increased 0.3 points in January to 73.4, bouncing back slightly after falling last month for the first time since July. Improvements in consumer optimism toward both homebuying and home-selling conditions, along with even greater expectations that home prices will rise over the next 12 months, drove the increase. However, after a surge in mortgage rate optimism in the second half of last year, January saw a 13-percentage-point decline in the net share of consumers who believe mortgage rates will go down in the next 12 months. In addition, the share of consumers who expect rental prices will go up increased 8 percentage points from last month to 65%. Year over year, the HPSI is up 2.7 points.

“Consumers seem increasingly pessimistic that housing affordability conditions will improve across the board, as a growing share expects home prices, rent prices, and mortgage rates will all go up,” said Kim Betancourt, Vice President of Multifamily Economics and Strategic Research. “The lower optimism toward the mortgage rate outlook was largely expected, as rates have continued to stay elevated and even crossed the 7% threshold in mid-January. As noted in our latest forecast, we currently expect mortgage rates to end 2025 around 6.5%, relatively little changed from where we are today, which will likely continue to hinder relief for housing affordability and home sales activity.”

Betancourt continued: “On the rental side, consumers have indicated a sharply growing expectation over the past two months that rent prices will increase. This mirrors our expectation that multifamily rents will grow between 2.0% and 2.5% this year — up from an estimated 1.0% last year. Even though it remains relatively cheaper for consumers to rent than buy in nearly every U.S. metro, we expect affordability issues will remain a real challenge for both renters and homeowners alike for the foreseeable future.”

Home Purchase Sentiment Index – Component Highlights
Fannie Mae’s Home Purchase Sentiment Index (HPSI) increased 0.3 points in January to 73.4. The HPSI is up 2.7 points compared to the same time last year. Read the full research report for additional information.
- Good/Bad Time to Buy: The percentage of respondents who say it is a good time to buy a home (22%) and the percentage who say it is a bad time to buy (78%) both stayed the same from last month. The net share of those who say it is a good time to buy increased 2 percentage points month over month to -55%.
- Good/Bad Time to Sell: The percentage of respondents who say it is a good time to sell a home (63%) and the percentage who say it’s a bad time to sell (36%) both remained unchanged month over month. The net share of those who say it is a good time to sell increased 1 percentage point month over month to 28%.
- Home Price Expectations: The percentage of respondents who say home prices will go up in the next 12 months increased from 38% to 43%, while the percentage who say home prices will go down decreased from 27% to 22%. The share who think home prices will stay the same decreased from 35% to 34%. As a result, the net share of those who say home prices will go up in the next 12 months increased 9 percentage points month over month to 20%.
- Mortgage Rate Expectations: The percentage of respondents who say mortgage rates will go down in the next 12 months decreased from 42% to 35%, while the percentage who expect mortgage rates to go up increased from 25% to 32%. The share who think mortgage rates will stay the same increased from 32% to 33%. As a result, the net share of those who say mortgage rates will go down over the next 12 months decreased 13 percentage points month over month to 3%.
- Job Loss Concern: The percentage of employed respondents who say they are not concerned about losing their job in the next 12 months increased from 77% to 78%, while the percentage who say they are concerned stayed at 22%. As a result, the net share of those who say they are not concerned about losing their job increased 2 percentage points month over month to 56%.
- Household Income: The percentage of respondents who say their household income is significantly higher than it was 12 months ago remained at 17%, while the percentage who say their household income is significantly lower decreased from 11% to 9%. The percentage who say their household income is about the same increased from 70% to 73%, a new survey high. As a result, the net share of those who say their household income is significantly higher than it was 12 months ago increased 2 percentage points month over month to 8%.
About Fannie Mae’s Home Purchase Sentiment Index
The Home Purchase Sentiment Index® (HPSI) distills information about consumers’ home purchase sentiment from Fannie Mae’s National Housing Survey® (NHS) into a single number. The HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions and complements existing data sources to inform housing-related analysis and decision-making. The HPSI is constructed from answers to six NHS questions that solicit consumers’ evaluations of housing market conditions and address topics that are related to their home purchase decisions. The questions ask consumers whether they think that it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher or lower than they were a year earlier.

About Fannie Mae’s National Housing Survey
The National Housing Survey (NHS) is a monthly attitudinal survey, launched in 2010, which polls a representative sample of adult household financial decision makers in the United States, to assess their attitudes toward owning and renting a home, purchase and rental prices, household finances, and overall confidence in the economy. Each respondent is asked more than 100 questions, making the NHS one of the most detailed longitudinal surveys of its kind to track attitudinal shifts, six of which are used to construct the HPSI (findings are compared with the same survey conducted monthly beginning June 2010). For more information, please see the Technical Notes.

Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to support the housing market. The January 2025 National Housing Survey was conducted between January 2, 2025, and January 21, 2025. Most of the data collection occurred during the first two weeks of this period. The latest NHS was fielded exclusively through AmeriSpeak®, NORC at the University of Chicago’s probability-based panel, in coordination with Fannie Mae and PSB Insights. Calculations are made using unrounded and weighted respondent-level data to help ensure precision in NHS results from wave to wave. As a result, minor differences in calculated data (summarized results, net calculations, etc.) of up to 1 percentage point may occur due to rounding.

Detailed HPSI & NHS Findings
For detailed findings from the Home Purchase Sentiment Index and National Housing Survey, as well as a brief HPSI overview and detailed white paper, technical notes on the NHS methodology, and questions asked of respondents associated with each monthly indicator, please visit the Surveys page on fanniemae.com. Also available on the site are in-depth special topic studies, which provide a detailed assessment of combined data results from three monthly studies of NHS results.

To receive e-mail updates with other housing market research from Fannie Mae’s Economic and Strategic Research Group, please click here.

About the ESR Group
Fannie Mae’s Economic and Strategic Research Group, led by Chief Economist Mark Palim, studies current data, analyzes historical and emerging trends, and conducts surveys of consumer and mortgage lender groups to provide forecasts and analyses on the economy, housing, and mortgage markets.
MIL OSI Economics –
February 8, 2025
MIL-OSI: MREL and MDIV Earn FundGrade A+® Ratings For 2024

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 07, 2025 (GLOBE NEWSWIRE) — Middlefield is pleased to announce that two of its core ETFs—Middlefield Real Estate Dividend ETF (MREL) and Middlefield Sustainable Global Dividend ETF (MDIV)—have been awarded the Fundata FundGrade A+® rating for 2024. This prestigious distinction is given to Canadian investment funds that have consistently delivered the best risk-adjusted returns over an entire calendar year.

“Receiving the FundGrade A+® award for both MREL and MDIV reflects our disciplined investment approach and commitment to delivering consistent, risk-adjusted returns for our investors,” said Dean Orrico, President and CEO of Middlefield. “Real estate and dividend-focused equities help create more resilient portfolios by providing reliable income streams, managing risk, and enhancing stability. In light of the current uncertain market backdrop, we believe these strategies are excellent diversifiers for investor portfolios, and we look forward to building on this success in 2025.”

About the Award-Winning Funds

Middlefield Real Estate Dividend ETF (MREL)
MREL is designed to provide investors with stable monthly income and long-term capital appreciation by investing in a diversified portfolio of high-quality global real estate companies. Since its launch in 2011, the fund has taken an actively managed approach, leveraging the expertise of Middlefield’s investment team to identify leading real estate businesses with growing cash flows and increasing dividends. For the second consecutive year, MREL has earned the FundGrade A+® rating, reinforcing its consistent performance and ability to navigate various market cycles.

Middlefield Sustainable Global Dividend ETF (MDIV)
MDIV is a high-conviction portfolio of global companies diversified across geographies and industries, with a focus on businesses that pay and grow dividends. Since its inception in 2013, the fund has prioritized large capitalization, high quality companies with durable business models and a strong track record of earnings growth.

Additionally, Middlefield’s flagship North American fund, Income Plus Class, finished 2024 with a Fundata FundGrade A® rating, which is awarded to funds that substantially outperform their peers, ranking in the top 10% of their category.

Learn more about MREL
Learn more about MDIV
Learn more about Income Plus

For any questions or media requests, please contact Cassandra Coleman at ccoleman@middlefield.com.

Founded in 1979, Middlefield is a Toronto-based asset manager specializing in innovative investment solutions. Over the past 45 years, we have developed a disciplined investment process across six core equity income mandates: Real Estate, Healthcare, Innovation, Infrastructure, Energy, and Diversified Income. We focus on high-quality companies with strong cash flow and dividend growth potential.

Our investment solutions include award-winning ETFs and Mutual Funds, designed to meet the needs of advisors, institutional investors, and individual investors. Backed by a dedicated team, we strive to deliver superior returns through expertise and disciplined portfolio management.

Disclosure: FundGrade A+^® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+^® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+^® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+^® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+^® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

Performance for Funds: Middlefield Real Estate Dividend ETF (MREL) won the 2024 FundGrade A+® in the Real Estate Equity Category, out of 29 funds. The FundGrade A+® performance start date was 12/31/2014 and the FundGrade A+® performance end date was 12/31/2024. Performance for the fund for the period ended December 31, 2024 is as follows: 7.0% (1 year), -3.4% (3 years), 3.4% (5 years), 6.3% (10 years) and since inception 7.2% (since inception – April 20, 2011). Middlefield Sustainable Global Dividend ETF (MDIV) won the 2024 FundGrade A+® in the Global Dividend & Income Equity Category, out of 39 funds. The FundGrade A+® performance start date was 12/31/2014 and the FundGrade A+® performance end date was 12/31/2024. Performance for the fund for the period ended December 31, 2024 is as follows: 43.7% (1 year), 13.1% (3 years), 14.0% (5 years), 11.8% (10 years) and since inception 12.6% (since inception – March 22, 2013).

Disclaimer: Please consult your advisor and read the prospectus document before investing. There may be commissions, trailing commissions, management fees and expenses associated with ETF investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

The MIL Network –

February 8, 2025

CONTACTS:	Anthony G. Voorhees	Michael Newman
	Chief Financial Officer	Investor Relations
	Key Tronic Corporation	StreetConnect
	(509) 927-5345	(206) 729-3625

CONTACT:		Hilary Ginsberg
		Investor Relations
		(212) 822-0767

Category: Residential Housing Market

13 February 2025

Context

Annual Summary

Quarterly Summary

The temptation of housing

Constraints on housing supply

Reforming housing supply

1. Create a budget

2. Boosting your income

3. Build your pension

4. Steady does it

5. Imagine the future

Meet the challenge head-on

Share this page

Updates to this page

Recent news

Governor’s order tackles predators

Report low-ball offers

Recent news