Taxation – Page 132 – NewzIntel.com

MIL-OSI: TruGolf Reports 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Salt Lake City, Utah, April 21, 2025 (GLOBE NEWSWIRE) — TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, announced today an overview of its 2024 results that were filed on Form 10-K on April 15, 2025. The Company reported record sales of $21.9 million, an increase of 6.2% percent as compared to 2023 sales. The gains were driven by continued enthusiastic market adoption of new hardware and software products launched earlier in 2024. Net losses narrowed by 14.5% to ($8.8) million for 2024, versus a net loss of ($10.3) million in 2023. Notably, 42% of the net loss for 2024 was due to non-cash expenses. EPS for the full year was ($0.76), a significant improvement from 2023’s ($857.35) loss per share.

Chief Executive Officer and Director Chris Jones said, “We are very pleased with our growing sales momentum for our upgraded and industry-leading golf simulators and software. Cost controls were effective and contributed to our greater cash generation in the second half of the year. We ended the year with $10.9 million in cash, and our debt went down. Interest in our franchise concept remains high and we anticipate announcing contracts for additional franchises in the United States throughout 2025. We now expect the first franchise locations to open by the end of the second quarter, with associated delivery of TruGolf simulators in the first half of 2025.”

Mr. Jones continued, “2024 saw the rollout of our new, industry-leading golf simulator products that were eagerly accepted by the market. While 2024’s sales growth was somewhat hindered by select product availability, we expect to continue setting the standard in the world of virtual golf with further hardware and software innovations arriving in 2025.”

Operations:

Gross margin for 2024 improved to 66.7% as compared to 61.9% in 2023. 2024’s loss from operations was 75% lower at ($2.1) million as compared to ($8.7) million in 2023. 2024 operating expenses declined by 22% or $4.7 million. These improvements were driven by implementing better cost controls, reducing discretionary spending and achieving greater productivity through enhanced operational efficiencies.

2024 SG&A expenses declined by 40%, or $4.4 million, in 2024 as compared to 2023. Non-cash stock compensation expense for the year was $658,000. Cash flow used in operations was $4.0 million in 2024, versus $6.1 million in 2023, an improvement of over 35%. TruGolf ended 2024 with $10.9 million in cash on the balance sheet.

As previously disclosed, on October 2, 2024, the Company received a delist determination letter from the Listing Qualifications Department (the “Staff”) of the Nasdaq Stock Market (“Nasdaq”) related to its failure to maintain stockholders’ equity for continued listing. The Company has requested a hearing to appeal the delist determination, which has been scheduled for May 15, 2025.

Disclaimer on Forward Looking Statements

This news release contains certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute “forward-looking statements” and accordingly, involve estimates, assumptions, forecasts, judgements and uncertainties. Forward-looking statements include, without limitation, the timing of new franchise openings during 2025. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ”believes,” ”estimates,” ”anticipates,” ”expects,” ”plans,” ”projects,” ”intends,” ”potential,” ”may,” ”could,” ”might,” ”will,” ”should,” ”approximately” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are available on the SEC’s website, www.sec.gov

About TruGolf:

Since 1983, TruGolf has been passionate about driving the golf industry with innovative indoor golf solutions. TruGolf builds products that capture the spirit of golf. TruGolf’s mission is to help grow the game by attempting to make it more Available, Approachable, and Affordable through technology – because TruGolf believes Golf is for Everyone. TruGolf’s team has built award-winning video games (“Links”), innovative hardware solutions, and an all-new e-sports platform to connect golfers around the world with E6 CONNECT. Since TruGolf’s beginning, TruGolf has continued to attempt to define and redefine what is possible with golf technology.

Contact: Michael Bacal
mbacal@darrowir.com
917-886-9071

TRUGOLF HOLDINGS, INC
CONSOLIDATED BALANCE SHEETS

	December 31,			December 31,
	2024			2023

ASSETS

Current Assets:
Cash and cash equivalents	$	10,882,077		$	3,297,564
Restricted cash		–			2,100,000
Marketable investment securities		–			2,478,953
Accounts receivable, net		1,399,153			2,398,872
Inventory, net		2,349,345			2,119,084
Prepaid expenses and other current assets		116,619			262,133
Other current assets		45,737			–
Total Current Assets		14,792,930			12,656,606

Property and equipment, net		143,852			234,308
Capitalized software development costs, net		1,540,121			–
Right-of-use assets		634,269			972,663
Other long-term assets		31,023			1,905,983

Total Assets	$	17,142,195		$	15,769,560

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities:
Accounts payable	$	2,819,702		$	2,059,771
Deferred revenue		3,113,010			1,704,224
Notes payable, current portion		10,001			9,425
Notes payable to related parties, current portion		2,937,000			1,237,000
Line of credit, bank		802,738			802,738
Margin line of credit account		–			1,980,937
Convertible notes payable		–			954,622
Dividend notes payable		4,023,923			–
Derivative liability		–			–
Accrued interest		661,376			459,872
Accrued and other current liabilities		999,307			1,125,495
Accrued and other current liabilities – assumed in Merger		45,008			–
Lease liability, current portion		363,102			334,255
Total Current Liabilities		15,775,167			10,668,339

Non-current Liabilities:
Notes payable, net of current portion		9,732			2,402,783
Note payables to related parties, net of current portion		624,000			861,000
PIPE loan payable, net		4,068,953			–
Dividend notes payable		–			4,023,923
Gross sales royalty payable		1,000,000			1,000,000
Lease liability, net of current portion		305,125			668,228
Other liabilities		–			63,015

Total Liabilities		21,782,977			19,687,288

Commitments and Contingencies

Stockholders’ Deficit:
Preferred stock, $0.0001 par value, 10 million shares authorized; zero shares issued and outstanding, respectively		–			–
Common stock, $0.0001 par value, 100,000,000 shares authorized:
Common stock – Series A, $0.0001 par value, 90 million shares authorized; 26,120,545 and 13,098 shares issued and outstanding, respectively		2,612			120
Common stock – Series B, $0.0001 par value, 10 million shares authorized; 1,716,860 and 1,716,860 shares issued and outstanding, respectively		172			–
Treasury stock at cost, 4,692 shares of common stock held, respectively		(2,037,000	)		(2,037,000	)
Additional paid-in capital		18,548,931			10,479,738
Accumulated other comprehensive loss		–			(1,662	)
Accumulated deficit		(21,155,497	)		(12,358,924	)
		(4,640,782	)		(3,917,728	)

Total Stockholders’ Deficit		(4,640,782	)		(3,917,728	)

Total Liabilities and Stockholders’ Deficit	$	17,142,195		$	15,769,560

TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	For the			For the
	Year Ended			Year Ended
	December 31, 2024			December 31, 2023

Revenue, net	$	21,858,864		$	20,583,851
Cost of revenue		7,271,512			7,825,768
Total gross profit		14,587,352			12,758,083

Operating expenses:
Royalties		706,214			709,640
Salaries, wages and benefits		9,314,415			9,681,323
Selling, general and administrative		6,669,684			11,027,332
Total operating expenses		16,690,313			21,418,295

Loss from operations		(2,102,962	)		(8,660,212	)

Other (expenses) income:
Interest income		106,400			108,011
Interest expense		(6,932,618	)		(1,730,908	)
Gain on fair value adjustment		142,319			–
Loss on extinguishment of debt		(270,594	)		–
Gain on investment		262,035			–
Total other expense		(6,692,458	)		(1,622,897	)

Loss from operations before provision for income taxes		(8,795,420	)		(10,283,109	)

Provision for income taxes		–			–
Net loss	$	(8,795,420	)	$	(10,283,109	)

Net loss per common share Series A – basic and diluted	$	(0.76	)	$	(857.35	)

Weighted average shares outstanding Series A – basic and diluted		11,634,761			11,994

TRUGOLF HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the			For the
	Year Ended			Year Ended
	December 31, 2024			December 31, 2023

Cash flows from operating activities:
Net loss	$	(8,795,420	)	$	(10,283,109	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		607,415			58,641
Amortization of convertible notes original issue discount		728,278			97,111
Amortization of right-of-use asset		338,394			298,208
Change in fair value of derivative liability		142,319
Fair value of warrants in excess of fair value of debt		–			93,530
Bad debt expense		767,913			681,479
Change in OCI		1,662			–
Stock issued for services		119,959			5,872,529
Stock issued for make good provisions on debt conversion		700,821			–
Stock options issued to employees		538,323			–
Changes in operating assets and liabilities:
Marketable investment securities		–			12,530
Accounts receivable, net		231,806			(1,335,714	)
Inventory, net		(230,261	)		2,396
Prepaid expenses		145,514			(114,385	)
Capitalized software, net		(2,070,742	)		–
Other current assets		(45,737	)		17,840
Other assets		13,662			(1,905,983	)
Accounts payable		494,215			596,434
Deferred revenue		1,408,786			(1,008,296	)
Accrued interest payable		201,504			615,582
Accrued and other current liabilities		(634,557	)		374,819
Other liabilities		(63,015	)		63,015
Lease liability		(334,256	)		(269,848	)
Net cash used in operating activities		(5,733,416	)		(6,133,221	)

Cash flows from investing activities:
Purchases of property and equipment		–			(127,413	)
Purchase of short-term investments		–			(2,493,145	)
Sale of short-term investments		2,478,953			–

Net cash provided by (used in) investing activities		2,478,953			(2,620,558	)

Cash flows from financing activities:
Proceeds from PIPE loans, net of discount		8,902,681			–
Proceeds from loan payable – related party		2,000,000			–
Proceeds from investment fund (PIPE)		2,112,560			–
Cash acquired in Merger		103,818			–
Debt refinance conversion		192,787			–
Proceeds from line of credit		–			1,980,937
Proceeds from notes payable		–			2,433,059
Proceeds from convertible notes		–			185,500
Costs of Merger paid from PIPE loan		(1,947,787	)		–
Repayments of line of credit		(1,980,937	)		–
Repayments of loans assumed in Merger		(100,000	)		–
Repayments of notes payable		(9,146	)		(107,569	)
Repayments of notes payable – related party		(535,000	)		(37,000	)
Dividends paid		–			40,150

Net cash provided by financing activities		8,738,976			4,495,077

Net change in cash , cash equivalents and restricted cash		5,484,513			(4,258,702	)

Cash, cash equivalents and restricted cash – beginning of year		5,397,564			9,656,266

Cash and cash equivalents – end of year	$	10,882,077		$	5,397,564

Supplemental cash flow information:
Cash paid for:
Interest	$	923,975		$	1,115,332
Income taxes	$	–		$	–
Non-cash investing and financing activities:
Derivative liability related to warrants	$	142,319		$	–
PIPE note principal converted to Class A Common Stock	$	5,832,600		$	–
Convertible notes exchanged for PIPE note	$	2,419,622		$	–
Class A Common Stock exchanged in Merger	$	3,854,573		$	–
Class A Common Stock issued in Merger	$	1,154		$	–
Class B Common Stock issued in Merger	$	172		$	–
Termination of loan payable	$	1,875,000		$	–
Conversion of dividend note payable and accrued interest	$	–		$	3,925,273
Conversion of note payable to line of credit	$	–		$	257,113
Warehouse lease	$	–		$	537,994

The MIL Network –

April 22, 2025

MIL-OSI: TrustCo Reports First Quarter 2025 Net Income of $14.3 Million From Repricing Loan Portfolio and Well-Managed Cost of Funds

Source: GlobeNewswire (MIL-OSI)

Executive Snapshot:

Bank-wide financial results:
- Key metrics for the first quarter 2025:
  - Net income of $14.3 million increased 17.7% compared to $12.1 million for the first quarter 2024
  - Net interest income of $40.4 million, up 10.4% from $36.6 million compared to the first quarter 2024
  - Average loans were up $104.7 million for the first quarter 2025 compared to the first quarter 2024
  - Average deposits were up $103.3 million for the first quarter 2025 compared to the first quarter 2024

Capital position and key ratios:
- Consolidated equity to assets increased to 10.85% as of March 31, 2025 from 10.51% as of March 31, 2024
- Book value per share as of March 31, 2025 was $36.16, up from $34.12 as of March 31, 2024
- Stock repurchase program announced authorizing for up to one million shares or approximately 5% of TrustCo’s current outstanding common stock

Trustco Financial Services and Wealth Management income:
- Fees increased to $2.1 million or 16.7% compared to first quarter 2024
- Assets under management increased to $1.2 billion or 17.4% compared first quarter 2024

GLENVILLE, N.Y., April 21, 2025 (GLOBE NEWSWIRE) —

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced a robust start to 2025, marked by significant growth in both the loan and deposit portfolios of Trustco Bank during the first quarter of 2025 compared to the first quarter of 2024. This performance underscores the Bank’s commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape. This resulted in first quarter 2025 net income of $14.3 million or $0.75 diluted earnings per share, compared to net income of $12.1 million or $0.64 diluted earnings per share for the first quarter 2024. Average loans increased $104.7 million or 2.1% for the first quarter 2025 over the same period in 2024. Average deposits increased $103.3 million or 1.9% for the first quarter 2025 over the same period in 2024.

Overview

Chairman, President, and CEO, Robert J. McCormick said “We are very pleased to announce today that tried and true Trustco Bank strategy has once again yielded exceptional results. We added loans at current market rates, which repriced our current loan portfolio higher, supporting long-term profitability. This was funded entirely by our own deposits, and we did so while holding the line on board rates. Despite aggressive market competition, we have favorably repriced our time deposits with the help of strong brand loyalty and digital engagement. These efforts yielded net income of $14.3 million and boosted all return metrics significantly year-over-year. Credit quality remains exceptional, with non-performing loans holding steady at a negligible 0.37%. The Bank also grew capital and thus maintains its position of strength. Based upon what we have seen in the first quarter, we anticipate that good things are likely in the future.”

Details

Average loans were up $104.7 million, or 2.1%, in the first quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $26.2 million, or 0.6%, and $61.0 million, or 17.3%, respectively, in the first quarter 2025 over the same period in 2024. Average commercial loans also increased $20.7 million, or 7.5%, in the first quarter 2025 over the same period in 2024. This uptick reflects a strong local economy and increased demand for credit. Average deposits were up $103.3 million, or 1.9%, for the first quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. We believe the increase in these deposits compared to the same period in 2024 continues to indicate strong customer confidence in the Bank’s competitive deposit offerings. As we move forward, despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success.

During the first quarter of 2025, the TrustCo announced a stock repurchase program of up to one million shares, or approximately 5% of TrustCo’s current outstanding shares of common stock. This repurchase initiative is part of the Bank’s broader capital management strategy and is intended to enhance shareholder value while maintaining flexibility to support future growth. As of March 31, 2025, our equity to asset ratio was 10.85%, compared to 10.51% as of March 31, 2024. Book value per share as of March 31, 2025 was $36.16, up 6.0% compared to $34.12 a year earlier.

Net interest income was $40.4 million for the first quarter 2025, an increase of $3.8 million, or 10.4%, compared to the first quarter of 2024, driven by loan growth at higher interest rates and less interest expense on deposit products, partially offset by lower investment interest income and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the first quarter 2025 was 2.64%, up 20 basis points from 2.44% in the first quarter of 2024. The yield on interest earnings assets increased to 4.13% in the first quarter of 2025, up 14 basis points from 3.99% in the first quarter of 2024. The cost of interest bearing liabilities decreased to 1.92% in the first quarter 2025, down from 1.99% in the first quarter 2024. As the Federal Reserve signals potential interest rate reductions in 2025, the Bank is proactively preparing to navigate the evolving rate environment. In this context, the Bank anticipates that a lower interest rate environment will provide opportunities to manage deposit costs more effectively, thereby supporting net interest margin. The Bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our communities’ banking needs.

Non-interest income increased to $5.0 million as compared to $4.8 million for the first quarter of 2024. This increase was primarily attributable to wealth management and financial services fees, which increased by 16.7% to $2.1 million, driven by strong client demand and higher assets under management. These revenues now represent 42.6% of non-interest income. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Non-interest expense increased $1.4 million over the first quarter of 2024 due to increases in several areas of expenses.

Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $300 thousand in the first quarter of 2025, which is the result of a provision for credit losses on loans of $100 thousand, and a provision for credit losses on unfunded commitments of $200 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.98% as of March 31, 2025 and 2024, respectively. The allowance for credit losses on loans was $50.6 million as of March 31, 2025, compared to $49.2 million as of March 31, 2024. Nonperforming loans (NPLs) were $18.8 million as of March 31, 2025, compared to $18.3 million as of March 31, 2024. NPLs were 0.37% of total loans as of March 31, 2025 and 2024. The coverage ratio, or allowance for credit losses on loans to NPLs, was 269.8% as of March 31, 2025, compared to 269.3% as of March 31, 2024. Nonperforming assets (NPAs) were $20.9 million as of March 31, 2025, compared to $20.6 million as of March 31, 2024.

A conference call to discuss first quarter 2025 results will be held at 9:00 a.m. Eastern Time on April 22, 2025. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 048251. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 486810. The call will also be audio webcast at https://events.q4inc.com/attendee/647533404,and will be available for one year.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of March 31, 2025.

In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

Forward-Looking Statements

All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks, as well as diversity, equity, and inclusion-related risks, and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings, as well as our upcoming quarterly report on Form 10-Q for the first quarter of 2025. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

TRUSTCO BANK CORP NY
GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	3/31/2025			12/31/2024			3/31/2024
Summary of operations
Net interest income	$	40,373		$	38,902		$	36,578
Provision for credit losses		300			400			600
Noninterest income		4,974			4,409			4,843
Noninterest expense		26,329			28,165			24,903
Net income		14,275			11,281			12,126

Per share
Net income per share:
– Basic	$	0.75		$	0.59		$	0.64
– Diluted		0.75			0.59			0.64
Cash dividends		0.36			0.36			0.36
Book value at period end		36.16			35.56			34.12
Market price at period end		30.48			33.31			28.16

At period end
Full time equivalent employees		740			737			761
Full service banking offices		136			136			140

Performance ratios
Return on average assets		0.93	%		0.73	%		0.80	%
Return on average equity		8.49			6.70			7.54
Efficiency ratio (GAAP)		58.06			65.03			59.94
Adjusted Efficiency ratio (1)		58.00			63.93			59.94
Net interest spread		2.21			2.15			2.00
Net interest margin		2.64			2.60			2.44
Dividend payout ratio	47.97				60.70			56.48

Capital ratios at period end
Consolidated equity to assets		10.85	%		10.84	%		10.51	%
Consolidated tangible equity to tangible assets (1)		10.84	%		10.83	%		10.50	%

Asset quality analysis at period end
Nonperforming loans to total loans		0.37	%		0.37	%		0.37	%
Nonperforming assets to total assets		0.33			0.34			0.33
Allowance for credit losses on loans to total loans		0.99			0.99			0.98
Coverage ratio (2)	2.7x			2.7x			2.7x


(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
(2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.


CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Interest and dividend income:
Interest and fees on loans	$	53,450	$	53,024	$	52,112	$	50,660	$	49,804
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		596		680		718		909		906
State and political subdivisions		–		–		–		1		–
Mortgage-backed securities and collateralized mortgage
obligations – residential		1,483		1,418		1,397		1,451		1,494
Corporate bonds		260		358		361		362		476
Small Business Administration – guaranteed
participation securities		81		84		90		94		100
Other securities		7		6		2		2		3
Total interest and dividends on securities available for sale		2,427		2,546		2,568		2,819		2,979

Interest on held to maturity securities:
obligations – residential		57		59		62		65		68
Total interest on held to maturity securities		57		59		62		65		68

Federal Home Loan Bank stock		151		152		153		147		152

Interest on federal funds sold and other short-term investments		6,732		6,128		6,174		6,894		6,750
Total interest income		62,817		61,909		61,069		60,585		59,753

Interest expense:
Interest on deposits:
Interest-bearing checking		558		397		311		288		240
Savings		734		719		770		675		712
Money market deposit accounts		1,989		2,024		2,154		2,228		2,342
Time deposits		18,983		19,680		18,969		19,400		19,677
Interest on short-term borrowings		180		187		194		206		204
Total interest expense		22,444		23,007		22,398		22,797		23,175

Net interest income		40,373		38,902		38,671		37,788		36,578

Less: Provision for credit losses		300		400		500		500		600
Net interest income after provision for credit losses		40,073		38,502		38,171		37,288		35,978

Noninterest income:
Trustco Financial Services income		2,120		1,778		2,044		1,609		1,816
Fees for services to customers		2,645		2,226		2,482		2,399		2,745
Net gains on equity securities		–		–		23		1,360		–
Other		209		405		382		283		282
Total noninterest income		4,974		4,409		4,931		5,651		4,843

Noninterest expenses:
Salaries and employee benefits		11,894		12,068		12,134		12,520		11,427
Net occupancy expense		4,554		4,563		4,271		4,375		4,611
Equipment expense		1,944		2,404		1,757		1,990		1,738
Professional services		1,726		1,782		1,863		1,570		1,460
Outsourced services		2,700		3,051		2,551		2,755		2,501
Advertising expense		361		590		339		466		408
FDIC and other insurance		1,188		1,113		1,112		797		1,094
Other real estate expense, net		28		476		204		16		74
Other		1,934		2,118		1,969		1,970		1,590
Total noninterest expenses		26,329		28,165		26,200		26,459		24,903

Income before taxes		18,718		14,746		16,902		16,480		15,918
Income taxes		4,443		3,465		4,027		3,929		3,792

Net income	$	14,275	$	11,281	$	12,875	$	12,551	$	12,126

Net income per common share:
– Basic	$	0.75	$	0.59	$	0.68	$	0.66	$	0.64

– Diluted		0.75		0.59		0.68		0.66		0.64

Average basic shares (in thousands)		19,020		19,015		19,010		19,022		19,024
Average diluted shares (in thousands)		19,044		19,045		19,036		19,033		19,032


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)
	3/31/2025			12/31/2024			9/30/2024			6/30/3024				3/31/2024
ASSETS:

Cash and due from banks	$	48,782		$	47,364		$	49,659		$	42,193		$	44,868
Federal funds sold and other short term investments		707,355			594,448			473,306			493,920			564,815
Total cash and cash equivalents		756,137			641,812			522,965			536,113			609,683

Securities available for sale:
U. S. government sponsored enterprises		65,942			85,617			90,588			106,796			128,854
States and political subdivisions		18			18			26			26			26
Mortgage-backed securities and collateralized mortgage
obligations – residential		219,333			213,128			222,841			218,311			227,078
Small Business Administration – guaranteed
participation securities		13,683			14,141			15,171			15,592			16,260
Corporate bonds		24,779			44,581			54,327			53,764			53,341
Other securities		698			700			701			688			682
Total securities available for sale		324,453			358,185			383,654			395,177			426,241

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations-residential		5,090			5,365			5,636			5,921			6,206
Total held to maturity securities		5,090			5,365			5,636			5,921			6,206

Federal Reserve Bank and Federal Home Loan Bank stock		6,507			6,507			6,507			6,507			6,203

Loans:
Commercial		302,753			286,857			280,261			282,441			279,092
Residential mortgage loans		4,380,561			4,388,302			4,382,674			4,370,640			4,354,369
Home equity line of credit		419,806			409,261			393,418			370,063			355,879
Installment loans		13,017			13,638			14,503			15,168			16,166
Loans, net of deferred net costs		5,116,137			5,098,058			5,070,856			5,038,312			5,005,506

Less: Allowance for credit losses on loans		50,606			50,248			49,950			49,772			49,220
Net loans		5,065,531			5,047,810			5,020,906			4,988,540			4,956,286

Bank premises and equipment, net		37,178			33,782			33,324			33,466			33,423
Operating lease right-of-use assets		34,968			36,627			37,958			38,376			39,647
Other assets		108,681			108,656			98,730			102,544			101,881

Total assets	$	6,338,545		$	6,238,744		$	6,109,680		$	6,106,644		$	6,179,570

LIABILITIES:
Deposits:
Demand	$	793,306		$	762,101		$	753,878		$	745,227		$	742,997
Interest-bearing checking		1,067,948			1,027,540			988,527			1,029,606			1,020,136
Savings accounts		1,094,968			1,086,534			1,092,038			1,144,427			1,155,517
Money market deposit accounts		478,872			465,049			477,113			517,445			532,611
Time deposits		2,061,576			2,049,759			1,952,635			1,840,262			1,903,908
Total deposits		5,496,670			5,390,983			5,264,191			5,276,967			5,355,169

Short-term borrowings		82,275			84,781			91,450			89,720			94,374
Operating lease liabilities		38,324			40,159			41,469			42,026			43,438
Accrued expenses and other liabilities		33,468			46,478			43,549			42,763			37,399

Total liabilities		5,650,737			5,562,401			5,440,659			5,451,476			5,530,380

SHAREHOLDERS’ EQUITY:
Capital stock		20,097			20,097			20,058			20,058			20,058
Surplus		259,182			258,874			257,644			257,490			257,335
Undivided profits		453,931			446,503			442,079			436,048			430,346
Accumulated other comprehensive loss, net of tax		(132	)		(3,861	)		(6,600	)		(14,268	)		(14,763	)
Treasury stock at cost		(45,270	)		(45,270	)		(44,160	)		(44,160	)		(43,786	)

Total shareholders’ equity		687,808			676,343			669,021			655,168			649,190

Total liabilities and shareholders’ equity	$	6,338,545		$	6,238,744		$	6,109,680		$	6,106,644		$	6,179,570

Outstanding shares (in thousands)		19,020			19,020			19,010			19,010			19,024

NONPERFORMING ASSETS

(dollars in thousands)
(Unaudited)
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Nonperforming Assets

New York and other states*
Loans in nonaccrual status:
Commercial	$	688		$	343		$	466		$	741		$	532
Real estate mortgage – 1 to 4 family		14,795			14,671			15,320			14,992			14,359
Installment		139			108			163			131			149
Total non-accrual loans		15,622			15,122			15,949			15,864			15,040
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		15,622			15,122			15,949			15,864			15,040
Other real estate owned		2,107			2,175			2,503			2,334			2,334
Total nonperforming assets	$	17,729		$	17,297		$	18,452		$	18,198		$	17,374

Florida
Loans in nonaccrual status:
Commercial	$	–		$	–		$	314		$	314		$	314
Real estate mortgage – 1 to 4 family		3,135			3,656			3,176			2,985			2,921
Installment		3			22			5			22			–
Total non-accrual loans		3,138			3,678			3,495			3,321			3,235
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		3,138			3,678			3,495			3,321			3,235
Other real estate owned		–			–			–			–			–
Total nonperforming assets	$	3,138		$	3,678		$	3,495		$	3,321		$	3,235

Total
Loans in nonaccrual status:
Commercial	$	688		$	343		$	780		$	1,055		$	846
Real estate mortgage – 1 to 4 family		17,930			18,327			18,496			17,977			17,280
Installment		142			130			168			153			149
Total non-accrual loans		18,760			18,800			19,444			19,185			18,275
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		18,760			18,800			19,444			19,185			18,275
Other real estate owned		2,107			2,175			2,503			2,334			2,334
Total nonperforming assets	$	20,867		$	20,975		$	21,947		$	21,519		$	20,609


Quarterly Net (Recoveries) Chargeoffs

New York and other states*
Commercial	$	(3	)	$	62		$	65		$	–		$	–
Real estate mortgage – 1 to 4 family		41			(316	)		104			(74	)		(78	)
Installment		4			41			11			(2	)		36
Total net chargeoffs (recoveries)	$	42		$	(213	)	$	180		$	(76	)	$	(42	)

Florida
Commercial	$	(315	)	$	314		$	–		$	–		$	–
Real estate mortgage – 1 to 4 family		–			–			–			17			–
Installment		15			1			42			7			–
Total net (recoveries) chargeoffs	$	(300	)	$	315		$	42		$	24		$	–

Total
Commercial	$	(318	)	$	376		$	65		$	–		$	–
Real estate mortgage – 1 to 4 family		41			(316	)		104			(57	)		(78	)
Installment		19			42			53			5			36
Total net (recoveries) chargeoffs	$	(258	)	$	102		$	222		$	(52	)	$	(42	)


Asset Quality Ratios

Total nonperforming loans (1)	$	18,760		$	18,800		$	19,444		$	19,185		$	18,275
Total nonperforming assets (1)		20,867			20,975			21,947			21,519			20,609
Total net (recoveries) chargeoffs (2)		(258	)		102			222			(52	)		(42	)

Allowance for credit losses on loans (1)		50,606			50,248			49,950			49,772			49,220

Nonperforming loans to total loans		0.37	%		0.37	%		0.38	%		0.38	%		0.37	%
Nonperforming assets to total assets		0.33	%		0.34	%		0.36	%		0.35	%		0.33	%
Allowance for credit losses on loans to total loans		0.99	%		0.99	%		0.99	%		0.99	%		0.98	%
Coverage ratio (1)		269.8	%		267.3	%		256.9	%		259.4	%		269.3	%
Annualized net (recoveries) chargeoffs to average loans (2)		-0.02	%		0.01	%		0.02	%		0.00	%		0.00	%
Allowance for credit losses on loans to annualized net chargeoffs (2)		N/A			123.2x			56.3x			N/A			N/A

* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end
(2) For the three-month period ended

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
INTEREST RATES AND INTEREST DIFFERENTIAL

(dollars in thousands)
(Unaudited)	Three months ended							Three months ended
	March 31, 2025							March 31, 2024
	Average			Interest		Average		Average			Interest		Average
	Balance					Rate		Balance					Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	74,680		$	596	3.19	%	$	125,973		$	906	2.88	%
Mortgage backed securities and collateralized mortgage
obligations – residential		239,509			1,483	2.46			258,814			1,494	2.30
State and political subdivisions		18			–	6.77			26			0	6.90
Corporate bonds		40,019			260	2.60			73,625			476	2.59
Small Business Administration – guaranteed
participation securities		15,003			81	2.15			18,224			100	2.20
Other		699			7	4.01			696			3	1.72

Total securities available for sale		369,928			2,427	2.62			477,358			2,979	2.50

Federal funds sold and other short-term Investments		613,646			6,732	4.45			497,652			6,750	5.45

Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations – residential		5,233			57	4.34			6,329			68	4.30

Total held to maturity securities		5,233			57	4.34			6,329			68	4.30

Federal Home Loan Bank stock		6,507			151	9.28			6,203			152	9.80

Commercial loans		297,926			4,165	5.59			277,183			3,661	5.28
Residential mortgage loans		4,385,646			42,614	3.89			4,359,476			40,415	3.71
Home equity lines of credit		413,981			6,435	6.30			353,004			5,464	6.22
Installment loans		12,967			236	7.37			16,128			264	6.58

Loans, net of unearned income		5,110,520			53,450	4.19			5,005,791			49,804	3.98

Total interest earning assets		6,105,834		$	62,817	4.13			5,993,333		$	59,753	3.99

Allowance for credit losses on loans		(50,475	)						(48,824	)
Cash & non-interest earning assets		201,154							185,230


Total assets	$	6,256,513						$	6,129,739


Liabilities and shareholders’ equity

Deposits:
Interest bearing checking accounts	$	1,038,218		$	558	0.22	%	$	990,130		$	240	0.10	%
Money market accounts		469,070			1,989	1.72			544,687			2,342	1.73
Savings		1,089,358			734	0.27			1,158,558			712	0.25
Time deposits		2,054,494			18,984	3.75			1,889,929			19,677	4.19

Total interest bearing deposits		4,651,140			22,265	1.94			4,583,304			22,971	2.02
Short-term borrowings		83,207			180	0.88			93,316			204	0.88

Total interest bearing liabilities		4,734,347		$	22,445	1.92			4,676,620		$	23,175	1.99

Demand deposits		761,800							726,299
Other liabilities		78,748							80,158
Shareholders’ equity		681,618							646,662

Total liabilities and shareholders’ equity	$	6,256,513						$	6,129,739

Net interest income				$	40,372						$	36,578

Net interest spread						2.21	%						2.00	%


Net interest margin (net interest income to
total interest earning assets)						2.64	%						2.44	%

Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)
		3/31/2025			12/31/2024			3/31/2024
Tangible Book Value Per Share

Equity (GAAP)		$	687,808		$	676,343		$	649,190
Less: Intangible assets			553			553			553
Tangible equity (Non-GAAP)		$	687,255		$	675,790		$	648,637

Shares outstanding			19,020			19,020			19,024
Tangible book value per share			36.13			35.53			34.10
Book value per share			36.16			35.56			34.12

Tangible Equity to Tangible Assets
Total Assets (GAAP)		$	6,338,545		$	6,238,744		$	6,179,570
Less: Intangible assets			553			553			553
Tangible assets (Non-GAAP)		$	6,337,992		$	6,238,191		$	6,179,017

Equity to Assets (GAAP)			10.85	%		10.84	%		10.51	%
Tangible Equity to Tangible Assets (Non-GAAP)			10.84	%		10.83	%		10.50	%

		Three months ended
Efficiency and Adjusted Efficiency Ratios		3/31/2025			12/31/2024			3/31/2024

Net interest income (GAAP)	A	$	40,373		$	38,902		$	36,578
Non-interest income (GAAP)	B		4,974			4,409			4,843
Revenue used for efficiency ratio (GAAP)	C	$	45,347		$	43,311		$	41,421

Total noninterest expense (GAAP)	D	$	26,329		$	28,165		$	24,903
Less: Other real estate expense, net	E		28			476			74
Expense used for efficiency ratio (Non-GAAP)	F	$	26,301		$	27,689		$	24,829

Efficiency Ratio (GAAP)	D/C		58.06	%		65.03	%		59.94	%
Adjusted Efficiency Ratio (Non-GAAP)	F/C		58.00	%		63.93	%		59.94	%

Subsidiary:		Trustco Bank

Contact:		Robert Leonard
		Executive Vice President
		(518) 381-3693

The MIL Network –

April 22, 2025

MIL-OSI USA: Kean Secures Reinstated Non-Profit Status for Flemington Fire Department

Source: US Representative Tom Kean, Jr. (NJ-07)

(April 21, 2025) Flemington, NJ – Congressman Tom Kean, Jr. (NJ-07) announced today that, after persistent advocacy from his office, the Flemington Fire Department has officially regained its non-profit status from the Internal Revenue Service (IRS).

Former Chief and President Robert Motzel contacted the Congressman’s office seeking help with a years-long effort to reinstate the Fire Department’s tax-exempt status. Despite prior attempts to resolve the issue through other channels, the Department had faced repeated delays and setbacks. Thanks to the sustained efforts of Congressman Kean and his casework team, the IRS notified the Department in April 2025 that its non-profit status had finally been restored.

The Flemington Fire Department, a 100% volunteer organization serving the Borough of Flemington and the surrounding communities since 1842, first lost its non-profit designation due to a clerical error. The resulting six-year delay—including during the COVID-19 pandemic—severely impacted the Department’s ability to secure vital grants, loans, and matching funds. These limitations hindered the Department’s capacity to purchase critical first responder equipment and maintain operations.

“I am pleased that we have secured a long-overdue victory for the Flemington Fire Department,” said Congressman Tom Kean, Jr. “This organization has served its community with honor and dedication for over 175 years, and the restoration of its non-profit status will ensure it can continue protecting residents with the resources it needs. I applaud the brave men and women of the Department for their unwavering service, and I’m grateful my office could play a role in delivering this critical result.”

“I’d just like to say thank you in assisting us in the process. I thought this issue would never ever get resolved,” said Former Chief Robert Motzel. “I have to say, this is such a huge relief for the dedicated volunteers of Flemington Fire Department and our community. Knowing our congressional liaisons like you and representatives like Congressman Kean Jr. are truly helping their constituents is very much appreciated and does not go unnoticed.”

“Our volunteers fire department is critical to Flemington Borough,” said Flemington Mayor Marcia Karrow. “Congressman Kean’s help in reinstating their charitable not for profit status is key in their ability to apply for important grants for fire fighting equipment that both save lives and taxpayers dollars. The Borough is very grateful for his assistance.”

Since opening in January 2023, Congressman Kean’s office has closed over 3,500 constituent cases, helping return more than $18 million to residents of New Jersey’s 7^th Congressional District.

###

MIL OSI USA News –

April 22, 2025

MIL-OSI: NorthEast Community Bancorp, Inc. Reports Results for the Three Months Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

WHITE PLAINS, N.Y., April 21, 2025 (GLOBE NEWSWIRE) — NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), generated net income of $10.6 million, or $0.80 per basic share and $0.78 per diluted share, for the three months ended March 31, 2025 compared to net income of $11.4 million, or $0.87 per basic share and $0.86 per diluted share, for the three months ended March 31, 2024.

Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated, “We are, once again, pleased to report another quarter of strong earnings due to the excellent performance of our loan portfolio. Despite the challenging economic operating environment thus far in 2025, loan demand is strong with originations and outstanding commitments robust and increasing. As in the past, construction lending in high demand-high absorption areas continues to be our focus.”

Highlights for the three months ended March 31, 2025 are as follows:

Performance metrics continue to be strong at March 31, 2025, with a return on average total assets ratio of 2.12%, a return on average shareholders’ equity ratio of 12.98%, and an efficiency ratio of 41.64%.
Asset quality metrics continued to remain strong with no non-performing loans at either March 31, 2025 or December 31, 2024, and non-performing assets to total assets of 0.26% and 0.25% at March 31, 2025 and at December 31, 2024, respectively. Our allowance for credit losses related to loans totaled $5.1 million, or 0.30% of total loans at March 31, 2025 compared to $4.9 million, or 0.27% of total loans at December 31, 2024.
We increased total stockholders’ equity by $8.9 million, or 2.8%, to $327.2 million, or 16.92% of total assets as of March 31, 2025 from $318.3 million, or 15.84% of total assets as of December 31, 2024.

Balance Sheet Summary

Total assets decreased $76.2 million, or 3.8%, to $1.9 billion at March 31, 2025, from $2.0 billion at December 31, 2024. The decrease in assets was primarily due to decreases in net loans of $87.3 million and decreases of $1.0 million in accrued interest receivable, partially offset by increases in cash and cash equivalents of $11.2 million and increases of $1.3 million in equity securities.

Cash and cash equivalents increased $11.2 million, or 14.3%, to $89.5 million at March 31, 2025 from $78.3 million at December 31, 2024. The increase in cash and cash equivalents was a result of a decrease of $87.3 million in net loans and an increase of $8.9 million in stockholders’ equity, partially offset by a decrease in deposits of $84.4 million.

Equity securities increased $1.3 million, or 5.9%, to $23.3 million at March 31, 2025 from $22.0 million at December 31, 2024. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the three months ended March 31, 2025 and market appreciation of $300,000 due to market interest rate volatility during the quarter ended March 31, 2025.

Securities held-to-maturity decreased $129,000, or 0.9%, to $14.5 million at March 31, 2025 from $14.6 million at December 31, 2024 due to $129,000 in maturities and pay-downs of various investment securities.

Loans, net of the allowance for credit losses, decreased $87.3 million, or 4.8%, to $1.7 billion at March 31, 2025 from $1.8 billion at December 31, 2024. The decrease in loans consisted of decreases of $138.9 million in construction loans, $248,000 in non-residential loans, and $36,000 in one-to-four family loans. The decrease in our construction loan portfolio was due to normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The decrease in construction loans was offset by increases of $46.4 million in multi-family loans, $4.4 million in commercial and industrial loans, and $1.5 million in consumer loans.

During the quarter ended March 31, 2025, we originated loans totaling $170.1 million consisting primarily of $110.2 million in construction loans, $49.1 million in multi-family loans, $10.1 million in commercial and industrial loans, and $730,000 in mixed-use loans. The $110.2 million in construction loans had 38.4% disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans.

The allowance for credit losses related to loans increased to $5.1 million as of March 31, 2025, from $4.8 million as of December 31, 2024. The increase in the allowance for credit losses related to loans was due to recoveries totaling $352,000 and provision for credit losses totaling $62,000, offset by charge-offs totaling $117,000.

Premises and equipment increased $84,000, or 0.3%, to $24.9 million at March 31, 2025 from $24.8 million at December 31, 2024 primarily due to the purchases of additional fixed assets.

Federal Home Loan Bank stock was $397,000, foreclosed real estate was $5.1 million, and property held for investment was $1.4 million at both March 31, 2025 and December 31, 2024.

Bank owned life insurance (“BOLI”) increased $167,000, or 0.6%, to $25.9 million at March 31, 2025 from $25.7 million at December 31, 2024 due to increases in the BOLI cash value.

Accrued interest receivable decreased $1.0 million, or 7.9%, to $12.4 million at March 31, 2025 from $13.5 million at December 31, 2024 due to a decrease in the loan portfolio.

Right of use assets — operating decreased $145,000, or 3.6%, to $3.9 million at March 31, 2025 from $4.0 million at December 31, 2024, primarily due to amortization.

Other assets decreased $328,000, or 2.8%, to $11.3 million at March 31, 2025 from $11.6 million at December 31, 2024 due to decreases of $1.7 million in tax assets and $10,000 in miscellaneous assets, partially offset by increases of $1.1 million in suspense accounts and $263,000 in prepaid expenses.

Total deposits decreased $84.4 million, or 5.1%, to $1.6 billion at March 31, 2025 from $1.7 billion at December 31, 2024. The decrease in deposits was primarily due to decreases in certificates of deposit of $125.1 million, or 12.5%, and non-interest bearing deposits of $9.9 million, or 3.5%, partially offset by increases in NOW/money market accounts of $45.9 million, or 18.8%, and savings account balances of $3.3 million, or 2.4%. The decrease of $125.1 million in certificates of deposit consisted of a decrease in retail certificates of deposit of $76.0 million, or 14.8%, and a decrease in brokered certificates of deposit of $54.8 million, or 12.6%, partially offset by an increase in non-brokered listing services certificates of deposit of $5.7 million, or 17.0%.

The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts. The decrease in brokered certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate brokered deposits on their call dates.

Advance payments by borrowers for taxes and insurance increased $680,000, or 42.0%, to $2.3 million at March 31, 2025 from $1.6 million at December 31, 2024 due primarily to accumulation of real estate tax payments from borrowers.

Lease liability – operating decreased $136,000, or 3.3%, to $4.0 million at March 31, 2025 from $4.1 million at December 31, 2024, primarily due to amortization.

Accounts payable and accrued expenses decreased $1.3 million, or 8.7%, to $13.3 million at March 31, 2025 from $14.5 million at December 31, 2024 due primarily to a decrease in accrued expense of $2.8 million, partially offset by increases in dividends payable and other payables of $806,000, suspense accounts for loan closings of $346,000, and deferred compensation of $167,000. The allowance for credit losses for off-balance sheet commitments increased $175,000, or 24.8%, to $879,000 at March 31, 2025 from $704,000 at December 31, 2024 due primarily to an increase of $101.4 million, or 18.0%, in off-balance sheet commitments.

Stockholders’ equity increased $8.9 million, or 2.8% to $327.2 million at March 31, 2025, from $318.3 million at December 31, 2024. The increase in stockholders’ equity was due to net income of $10.6 million for the quarter ended March 31, 2025, an increase of $302,000 in earned employee stock ownership plan shares coupled with a reduction of $217,000 in unearned employee stock ownership plan shares, and the amortization expense of $478,000 relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, partially offset by dividends declared of $2.7 million and $13,000 in other comprehensive loss.

Results of Operations for the Three Months Ended March 31, 2025 and 2024

Net Interest Income

Net interest income was $24.3 million for the three months ended March 31, 2025, as compared to $25.0 million for the three months ended March 31, 2024. The decrease in net interest income of $722,000, or 2.9%, was primarily due to an increase in interest expense that exceeded an increase in interest income and a decrease in the yield on interest earning assets that exceeded a decrease in the cost of funds for interest bearing liabilities.

Total interest and dividend income increased $86,000, or 0.2%, to $38.2 million for the three months ended March 31, 2025 from $38.1 million for the three months ended March 31, 2024. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $159.9 million, or 9.2%, to $1.9 billion for the three months ended March 31, 2025 from $1.7 billion for the three months ended March 31, 2024, partially offset by a decrease in the yield on interest earning assets by 72 basis points from 8.77% for the three months ended March 31, 2024 to 8.05% for the three months ended March 31, 2025.

Interest expense increased $808,000, or 6.2%, to $13.9 million for the three months ended March 31, 2025 from $13.1 million for the three months ended March 31, 2024. The increase in interest expense was due to an increase in average interest bearing liabilities of $149.7 million, or 12.2%, to $1.4 billion for the three months ended March 31, 2025 from $1.2 billion for the three months ended March 31, 2024, partially offset by a decrease in the cost of interest bearing liabilities by 24 basis points from 4.29% for the three months ended March 31, 2024 to 4.05% for the three months ended March 31, 2025.

Our net interest margin decreased 64 basis points, or 11.1%, to 5.11% for the three months ended March 31, 2025 compared to 5.75% for the three months ended March 31, 2024. The decrease in the net interest margin was due to a decrease in the yield on interest-earning assets that exceeded a decrease in the cost of funds on interest-bearing liabilities.

Credit Loss Expense

The Company recorded a credit loss expense of $237,000 for the three months ended March 31, 2025 compared to a credit loss expense reduction of $165,000 for the three months ended March 31, 2024. The credit loss expense of $237,000 for the three months ended March 31, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.

The credit loss expense for loans of $62,000 for the three months ended March 31, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the three months ended March 31, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

The credit loss expense reduction of $165,000 for the three months ended March 31, 2024 was comprised of a credit loss expense reduction for loans of $145,000, a credit loss expense reduction for held-to-maturity investment securities of $3,000, and a credit loss expense reduction for off-balance sheet commitments of $17,000. The credit loss expense reduction for loans of $145,000 for the three months ended March 31, 2024 was primarily attributed to favorable trend in the economy.

With respect to the allowance for credit losses for loans, we charged-off $117,000 during the three months ended March 31, 2025 as compared to charge-offs of $21,000 during the three months ended March 31, 2024. The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.

We recorded recoveries of $352,000 during the three months ended March 31, 2025 compared to no recoveries during the three months ended March 31, 2024. The recoveries of $352,000 during the three months ended March 31, 2025 comprised of recoveries of $350,000 regarding a previously charged-off non-residential mortgage loan and $2,000 from a previously charged-off unpaid overdraft on a demand deposit account.

Non-Interest Income

Non-interest income for the three months ended March 31, 2025 was $1.2 million compared to non-interest income of $554,000 for the three months ended March 31, 2024. The increase of $681,000, or 122.9%, in total non-interest income was primarily due to increases of $382,000 in unrealized gain/(loss) on equity securities, $278,000 in other loan fees and service charges, $11,000 in miscellaneous other non-interest income, and $10,000 in BOLI income.

The increase in unrealized gain/(loss) on equity securities was due to an unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 compared to an unrealized loss of $82,000 on equity securities during the three months ended March 31, 2024. The unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 was due to market interest rate volatility during the three months ended March 31, 2025.

The increase of $278,000 in other loan fees and service charges was due to an increase of $245,000 in other loan fees and loan servicing fees, an increase of $31,000 in ATM/debit card/ACH fees, and an increase of $2,000 in deposit account fees.

The increase in BOLI income of $10,000 was due to an increase in the yield on BOLI assets.

Non-Interest Expense

Non-interest expense increased $938,000, or 9.7%, to $10.6 million for the three months ended March 31, 2025 from $9.7 million for the three months ended March 31, 2024. The increase resulted primarily from increases of $582,000 in salaries and employee benefits, $221,000 in other operating expense, $98,000 in outside data processing expense, $40,000 in occupancy expense, $19,000 in real estate owned expense, and $14,000 in advertising expense, partially offset by a decrease of $36,000 in equipment expense.

Income Taxes

We recorded income tax expense of $4.1 million and $4.7 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025, we had approximately $204,000 in tax exempt income, compared to approximately $195,000 in tax exempt income for the three months ended March 31, 2024. Our effective income tax rates were 27.8% for the three months ended March 31, 2025 compared to 29.0% for the three months ended March 31, 2024.

Asset Quality

Non-performing assets were $5.1 million at March 31, 2025 and December 31, 2024, respectively. These non-performing assets consisted of two foreclosed properties, with one foreclosed property totaling $4.4 million located in the Bronx, New York and one foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania.

Our ratio of non-performing assets to total assets remained low at 0.26% at March 31, 2025 as compared to 0.25% at December 31, 2024.

The Company’s allowance for credit losses related to loans was $5.1 million, or 0.30% of total loans as of March 31, 2025, compared to $4.8 million, or 0.27% of total loans as of December 31, 2024. Based on a review of the loans that were in the loan portfolio at March 31, 2025, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

In addition, at March 31, 2025, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $879,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.

Capital

The Company’s total stockholders’ equity to assets ratio was 16.92% as of March 31, 2025. At March 31, 2025, the Company had the ability to borrow $941.3 million from the Federal Reserve Bank of New York, $15.5 million from the Federal Home Loan Bank of New York, and $8.0 million from Atlantic Community Bankers Bank.

The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of March 31, 2025, the Bank had a tier 1 leverage capital ratio of 15.09% and a total risk-based capital ratio of 15.10%.

The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or 10%, of the Company’s issued and outstanding common stock. The cost of the stock repurchase program totaled $23.0 million, including commission costs and Federal excise taxes. Of the total shares repurchased under this program, 957,275 of such shares were repurchased during 2023 at a total cost of $13.7 million, including commission costs and Federal excise taxes.

The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. As of March 31, 2025, the Company had repurchased 1,091,174 shares of common stock under its second repurchase program, at a cost of $17.2 million, including commission costs and Federal excise taxes.

About NorthEast Community Bancorp

NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

Forward Looking Statement

This press release contains certain forward-looking statements. 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.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC”), which are available through the SEC’s website located at www.sec.gov. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

CONTACT:		Kenneth A. Martinek
		Chairman and Chief Executive Officer

PHONE:		(914) 684-2500


NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

	March 31,			December 31,
	2025			2024
	(In thousands, except share
	and per share amounts)
ASSETS
Cash and amounts due from depository institutions	$	11,524		$	13,700
Interest-bearing deposits		77,934			64,559
Total cash and cash equivalents		89,458			78,259
Certificates of deposit		100			100
Equity securities		23,294			21,994
Securities held-to-maturity ( net of allowance for credit losses of $126 and $126, respectively )		14,487			14,616
Loans receivable		1,725,664			1,812,647
Deferred loan fees, net		(63	)		(49	)
Allowance for credit losses		(5,127	)		(4,830	)
Net loans		1,720,474			1,807,768
Premises and equipment, net		24,889			24,805
Investments in restricted stock, at cost		397			397
Bank owned life insurance		25,905			25,738
Accrued interest receivable		12,432			13,481
Real estate owned		5,120			5,120
Property held for investment		1,361			1,370
Right of Use Assets – Operating		3,856			4,001
Right of Use Assets – Financing		346			347
Other assets		11,257			11,585
Total assets	$	1,933,376		$	2,009,581
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	278,694		$	287,135
Interest bearing		1,307,321			1,383,240
Total deposits		1,586,015			1,670,375
Advance payments by borrowers for taxes and insurance		2,298			1,618
Lease Liability – Operating		3,972			4,108
Lease Liability – Financing		619			609
Accounts payable and accrued expenses		13,262			14,530
Total liabilities		1,606,166			1,691,240

Stockholders’ equity:
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding	$	—		$	—
Common stock, $0.01 par value; 75,000,000 shares authorized; 14,023,376 shares and 14,016,254 shares outstanding, respectively		140			140
Additional paid-in capital		110,871			110,091
Unearned Employee Stock Ownership Plan (“ESOP”) shares		(5,870	)		(6,088	)
Retained earnings		221,858			213,974
Accumulated other comprehensive gain		211			224
Total stockholders’ equity		327,210			318,341
Total liabilities and stockholders’ equity	$	1,933,376		$	2,009,581


NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Quarter Ended March 31,
	2025		2024
	(In thousands, except per share amounts)
INTEREST INCOME:
Loans	$	36,882	$	36,703
Interest-earning deposits		1,081		1,200
Securities		244		218
Total Interest Income		38,207		38,121
INTEREST EXPENSE:
Deposits		13,933		12,394
Borrowings		–		731
Financing lease		10		10
Total Interest Expense		13,943		13,135
Net Interest Income		24,264		24,986
Provision for (reversal of) credit loss		237		(165	)
Net Interest Income after Provision for (Reversal of) Credit Loss		24,027		25,151
NON-INTEREST INCOME:
Other loan fees and service charges		740		462
Earnings on bank owned life insurance		167		157
Unrealized gain (loss) on equity securities		300		(82	)
Other		28		17
Total Non-Interest Income		1,235		554
NON-INTEREST EXPENSES:
Salaries and employee benefits		5,933		5,351
Occupancy expense		747		707
Equipment		217		253
Outside data processing		735		637
Advertising		102		88
Real estate owned expense		30		11
Other		2,855		2,634
Total Non-Interest Expenses		10,619		9,681
INCOME BEFORE PROVISION FOR INCOME TAXES		14,643		16,024
PROVISION FOR INCOME TAXES		4,076		4,650
NET INCOME	$	10,567	$	11,374


NORTHEAST COMMUNITY BANCORP, INC. SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited)

	Quarter Ended March 31,
	2025			2024
	(In thousands, except per share amounts)
Per share data:
Earnings per share – basic	$	0.80		$	0.87
Earnings per share – diluted		0.78			0.86
Weighted average shares outstanding – basic		13,192			13,118
Weighted average shares outstanding – diluted		13,560			13,191
Performance ratios/data:
Return on average total assets		2.12	%		2.50	%
Return on average shareholders’ equity		12.98	%		15.88	%
Net interest income	$	24,264		$	24,986
Net interest margin		5.11	%		5.75	%
Efficiency ratio		41.64	%		37.91	%
Net charge-off ratio		(0.05	)%		0.00	%

Loan portfolio composition:		March 31, 2025			December 31, 2024
One-to-four family	$	3,436		$	3,472
Multi-family		253,018			206,606
Mixed-use		26,572			26,571
Total residential real estate		283,026			236,649
Non-residential real estate		29,198			29,446
Construction		1,287,225			1,426,167
Commercial and industrial		123,113			118,736
Consumer		3,102			1,649
Gross loans		1,725,664			1,812,647
Deferred loan fees, net		(63	)		(49	)
Total loans	$	1,725,601		$	1,812,598
Asset quality data:
Loans past due over 90 days and still accruing	$	–		$	–
Non-accrual loans		–			–
OREO property		5,120			5,120
Total non-performing assets	$	5,120		$	5,120

Allowance for credit losses to total loans		0.30	%		0.27	%
Allowance for credit losses to non-performing loans		0.00	%		0.00	%
Non-performing loans to total loans		0.00	%		0.00	%
Non-performing assets to total assets		0.26	%		0.25	%

Bank’s Regulatory Capital ratios:
Total capital to risk-weighted assets		15.10	%		13.92	%
Common equity tier 1 capital to risk-weighted assets		14.79	%		13.65	%
Tier 1 capital to risk-weighted assets		14.79	%		13.65	%
Tier 1 leverage ratio		15.09	%		14.44	%


NORTHEAST COMMUNITY BANCORP, INC. NET INTEREST MARGIN ANALYSIS (Unaudited)

	Quarter Ended March 31, 2025								Quarter Ended March 31, 2024
	Average Balance			Interest and dividend		Average Yield			Average Balance			Interest and dividend		Average Yield
	(In thousands, except yield/cost information)								(In thousands, except yield/cost information)
Loan receivable gross	$	1,767,849		$	36,882		8.35	%	$	1,612,343		$	36,703		9.11	%
Securities		36,751			235		2.56	%		33,848			197		2.33	%
Federal Home Loan Bank stock		397			9		9.07	%		842			21		9.98	%
Other interest-earning assets		93,476			1,081		4.63	%		91,552			1,200		5.24	%
Total interest-earning assets		1,898,473			38,207		8.05	%		1,738,585			38,121		8.77	%
Allowance for credit losses		(4,827	)							(5,091	)
Non-interest-earning assets		96,493								88,859
Total assets	$	1,990,139							$	1,822,353

Interest-bearing demand deposit	$	274,630		$	2,445		3.56	%	$	171,483		$	1,817		4.24	%
Savings and club accounts		138,903			730		2.10	%		182,771			1,202		2.63	%
Certificates of deposit		962,084			10,758		4.47	%		810,586			9,375		4.63	%
Total interest-bearing deposits		1,375,617			13,933		4.05	%		1,164,840			12,394		4.26	%
Borrowed money		–			10		0.00	%		61,092			741		4.85	%
Total interest-bearing liabilities		1,375,617			13,943		4.05	%		1,225,932			13,135		4.29	%
Non-interest-bearing demand deposit		270,874								291,909
Other non-interest-bearing liabilities		18,086								18,090
Total liabilities		1,664,577								1,535,931
Equity		325,562								286,422
Total liabilities and equity	$	1,990,139							$	1,822,353

Net interest income / interest spread				$	24,264		4.00	%				$	24,986		4.48	%
Net interest rate margin							5.11	%							5.75	%
Net interest earning assets	$	522,856							$	512,653
Average interest-earning assets
to interest-bearing liabilities		138.01	%							141.82	%

The MIL Network –

April 22, 2025

MIL-OSI Asia-Pac: Union Minister Sarbananda Sonowal leads Commencement Ceremony of Cruise Operations from MICT in Mumbai, India’s largest Cruise Terminal

Source: Government of India

Union Minister Sarbananda Sonowal leads Commencement Ceremony of Cruise Operations from MICT in Mumbai, India’s largest Cruise Terminal

Sarbananda Sonowal inaugurate renovated Fire Memorial at Victoria Docks along with two other heritage buildings in Colaba; Boost to Green Port Initiatives with Shore to Ship Electric Supply along with ‘Sagar Upavan’ Garden

Sarbananda Sonowal attends MoU signing Ceremony for Three Agreements on Strategic Development of Vadhavan Port, aimed at Port Infra Development and Cargo Handling Facilities

Sarbananda Sonowal attends MoU signing ceremony for infra projects development worth ₹5700 crores at Vadhavan Port

Posted On: 21 APR 2025 6:43PM by PIB Delhi

The Union Minister of Ports, Shipping and Waterways (MoSPW), Shri Sarbananda Sonowal flagged off Cruise Operations from the Mumbai International Cruise Terminal (MICT), India’s largest cruise terminal, in Mumbai today. The Union Minister also inaugurated renovated Fire Memorial at Victoria Docks as well as renovated two heritage buildings — Fort House Ballard Estate and Evelyn House at Colaba. Sonowal also inaugurated Sagar Upvan garden along with Shore to Ship Electric Supply under Green Port Initiative.

The MICT, developed as per Cruise Bharat Mission, was developed as per latest global standards and is expected to take a pioneering role in developing cruise tourism in India. Spread over a built up area of more than 4,15,000 Square Feet, the MICT is developed at Ballard Pier. MICT is India’s largest world class cruise terminal. Equipped with 72 Check in and Immigration counters spreading over an area of 2,07,000 Square Feet on the first two floors (G+1) while the other two floors (2 + 3) are developed as Commercial Floors. The newly inaugurated MICT is designed to handle 1 million passengers every year with an approximate 10,000 passengers per day. It can also handle 5 ships simultaneously, with 11 meters draft and upto 300 meters length. At the parking space, more than 300 vehicles can be parked simultaneously.

Speaking on the commencement of Cruise Service from MICT, the Union Minister said, “The maritime history of Mumbai is rich and an integral part of our civilisation. As a coastal hub, it has served the nation handsomely with its bustling coastal business. It is only logical that we work towards realising Prime Minister Shri Narendra Modi ji’s vision of ‘Bharat becoming a global cruise hub through its state-of-the-art infrastructure.’ Today, Mumbai, with its longstanding repute as a major maritime hub in the world, commenced Cruise Operations from the Mumbai International Cruise Terminal, providing passengers modern amenities for a better and safer experience. This adds to our existing such top class international terminals at Visakhapatnam and Chennai. In order to celebrate the heroic contribution of Mumbai Port Fire Services personnel, the newly renovated Fire Memorial at Victoria Docks celebrates their distinctive service to the nation.”

MICT has been designed with a wavy ceiling reflecting the maritime identity with functional and minimalist architecture. MICT blends modern design with Mumbai’s maritime spirit—featuring fluid architecture, rose gold accents, and a sweeping ceiling. From heritage-inspired entry to sleek interiors with wave seating, selfie points, and maritime plaques, it offers a serene yet vibrant gateway to India’s emerging global cruise hub. MICT will provide enhanced passenger experience and position Mumbai as one of major hub for cruise tourism hub. The total investment in the MICT project has been ₹556 crores.

Elaborating on the vision of Cruise Bharat Mission, the Union Minister Shri Sarbananda Sonowal said, “PM Narendra Modi ji’s call for port-led prosperity has redefined our maritime ambitions. we also give momentum to the ‘Cruise Bharat Mission’—our resolve to make Bharat one of the top cruise destinations in the world. The mission embraces three pillars—Ocean and Harbour Cruises, River and Inland Cruises, and Island and Lighthouse Cruises. With a comprehensive strategy that combines digital ease, circuit integration, environmental sustainability, and global partnerships, This is India’s cruise awakening—bold, inclusive, and future-ready. Under the visionary leadership of hon’ble Prime Minister Shri Narendra Modi ji, India’s maritime sector has witnessed an astonishing transformation. it is the story of an India that believes in its potential and invests in its people.”

The renovated Fire Memorial at Victoria Docks, which was inaugurated by the Minister, is a solemn tribute to the Mumbai Port Fire Services personnel for their distinctive service to the nation. The fire memorial is renovated with “Golden Tears” theme as the tragic event which rained golden bricks were blown in the surrounding area of Port. To promote heritage and tourism, façade lighting was inaugurated at two iconic heritage buildings of MbPA – Port House at Ballard Estate and Evelyn House at Colaba — adding to the aesthetic and historical appeal of the city’s legacy.

In a boost to Green Port Initiative, the Shore to Ship Electric Supply at MbPA will help Tug boats and Coast Guard vessels, reduce emissions, bring in operational efficiency and reduce noise pollution. MbPA’s commitment to environmental sustainability and modernisation of port infrastructure, providing shore-based electric power will significantly enhance energy efficiency and operational cleanliness.

The rejuvenated Sagar Upvan Garden at Colaba was also inaugurated today. With support from Tata Trusts, the MbPA undertook extensive repair and enhancement works, including the restoration of the compound wall, construction of facilities for gardeners, along with a 25000 KLD Sewage Treatment Plant. Rich with more than 500 varieties of plants, it has scenic views of the Arabian Sea as well as Sassoon Docks. It has lush green lawns, sea-facing benches, and pathways ideal for jogging and walking along with a living laboratory for botany students and nature enthusiasts.

Union Minister Shri Sonowal also attended MoU signing ceremony for development of Infrastructure projects with investment worth of more than ₹5700 crores at Vadhavan Port, today. The agreements were signed for development of a terminal for handling container, bulk, and liquid cargo with investment of ₹4200 crores, development of a dedicated terminal for handling bulk and liquid cargo with an investment of ₹1,000 crores and development of a liquid cargo jetty and a tank farm with a capacity of 3,00,000 CBM for handling liquefied chemicals and related products with an investment of ₹500 crores.

Speaking at the MoU signing ceremony, Shri Sarbananda Sonowal said, “Our dynamic leader, Prime Minister Narendra Modi ji has given us a vision of transforming Vadhavan Port to become one of the Top 10 Global ports. As Vadhavan Port project is likely to power up India’s current capacity by more than three times, this is all weather, green field deep draft major port is going to act as a game changer for not only India’s maritime sector, but also enable regional trade. As India is poised to become a Viksit Bharat by 2047, this port is likely to act as a major growth multiplier. In this regard, the MoUs signed today adds towards creation of infrastructure and capacity of the Vadhavan port and helps us take another step towards realising the vision of PM, Shri Narendra Modi ji.”

The inauguration of fuel dispensing infrastructure — including two HSD units, one gasoline unit, and a fast electric vehicle (EV) charger — further bolsters the port’s push towards sustainable mobility within the operational area. The event also included the formal handover of key land assets. A charge certificate of the plot at Malet Bunder was handed over to JNPA for its corporate building. Another plot at Reay Road was transferred to the Hare Krishna Mission for social and community activities. Additionally, the E Shed at Mumbai Port was handed over to M/s Ruchi India Logistics to strengthen port-led logistics operations.

Speaking on the occasion, the Union Minister of State, MoPSW, Shri Shantanu Thakur said, “The launch of the new cruise service in Mumbai, restoration of Mumbai’s maritime heritage buildings, and green port initiatives mark a transformative step forward in realising Prime Minister Shri Narendra Modi ji’s vision of a sustainable, vibrant, and tourism-driven maritime economy that honours our past while embracing a cleaner, greener future. These efforts boost coastal tourism and urban renewal. They also reinforce India’s maritime leadership globally.”

The Cruise Bharat Mission has set ambitious yet achievable goals like Development of 10 international sea cruise terminals, creation of 100 river cruise terminals, Launch of 5 marinas along our coast, Seamless integration of more than 5000 km of waterways, Aiming for 1 million sea cruise passengers and 1.5 million river cruise passengers by 2029, creation of over 400 thousand direct and indirect jobs across the cruise value chain. Since 2014, the government under the leadership of PM Shri Narendra Modi, has led to a transformation of the maritime sector. The cargo handled at the major port cargo surged from 556 MMT in 2014 to 854 MMT in 2024-25 while costal cargo grew by 119%. The inland water cargo rose from 6.89 MMT to 133 MMT—a leap of over 1800%. The cruise passengers increased from 85,000 in 2014 to 4.71 lakh today, a phenomenal growth of 454%.

Union Minister Shri Sarbananda Sonowal, who graced the occasion as the Chief Guest, was joined by Shri Shantanu Thakur, Union Minister of State, MoSPW as the Guest of Honour along with Susil Kumar Singh (IRSME), Chairman, Mumbai Port Authority (MbPA); Adesh Titarmare, IAS, Deputy Chairman, MbPA; Unmesh Sharad Wagh, IRS, Chairman, Jawaharlal Nehru Port Authority (JNPA) and Dhruv Kotak, Managing Director, J.M. Baxi among other dignitaries and senior officials of the MoPSW and MbPA.

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GDH/HR

(Release ID: 2123251) Visitor Counter : 43

MIL OSI Asia Pacific News –

April 22, 2025

MIL-OSI Security: El Paso Business Owner Sentenced to 18 Months in Federal Prison for Tax Violations

Source: Office of United States Attorneys

EL PASO, Texas – An El Paso man was sentenced in a federal court in El Paso today to 18 months in prison for failure to account for and pay over trust fund taxes.

According to court documents, Edward Dean La Puma, 58, was the founder and sole proprietor of 77 Stone, a granite countertop business, who willfully failed to account for and pay over trust fund taxes for 20 tax periods, from the first quarter of 2018 through the last quarter of 2022. His 20 violations resulted in the tax loss of $818,096.

La Puma was indicted for 20 counts April 24, 2024 and arrested May 21, 2024. He pleaded guilty to one count on Nov. 21, 2024. As part of a plea agreement, La Puma agreed to pay restitution to the IRS in the amount of $383,551.

Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.

IRS Criminal Investigation investigated the case.

Assistant U.S. Attorney Micaela Glass prosecuted the case.

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MIL Security OSI –

April 22, 2025

MIL-OSI USA: Feenstra Helps Introduce Legislation to Make Doubled Standard Deduction Permanent for Iowa Families

Source: United States House of Representatives – Representative Randy Feenstra (IA-04)

HULL, IOWA – This Congress, U.S. Rep. Randy Feenstra (R-Hull) helped introduce, alongside U.S. Rep. Max Miller (R-OH), the Permanent Tax Cuts for American Families Act, which would make the enhanced standard deduction – first established by the Tax Cuts and Jobs Act (TCJA) of 2017 – permanent.

This enhanced deduction is set to expire at the end of 2025 absent congressional action.

“In 2017, the Tax Cuts and Jobs Act nearly doubled the standard deduction that American families, farmers, and workers could claim on their federal taxes. This enhanced standard deduction increased Iowans’ non-taxable income and has let taxpayers keep more of their hard-earned money. However, if Congress fails to act before the end of this year, the standard deduction would be almost slashed in half and lead to massive tax hikes on Americans,” said Rep. Feenstra. “I’m glad to help introduce the Permanent Tax Cuts for American Families Act to maintain the increased standard deduction and prevent the largest tax hike in U.S. history on Iowa families and workers. As a member of the House Ways and Means Committee, I will continue working with my Republican colleagues and President Trump to extend the Tax Cuts and Jobs Act and advance pro-growth economic policies.”

The TCJA nearly doubled the standard deduction, raising the return from $6,500 to $12,000 for individual filers, and from $13,000 to $24,000 for joint filers. For tax year 2024, the standard deduction for married couples filing jointly was raised to $29,200 for joint filers and $14,600 for individual filers.

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MIL OSI USA News –

April 22, 2025

MIL-OSI USA: LANCASTER COUNTY – Railroad Museum of Pennsylvania to Celebrate 50th Anniversary

Source: US State of Pennsylvania

April 22, 2025 – Strasburg, PA

ADVISORY – LANCASTER COUNTY – Railroad Museum of Pennsylvania to Celebrate 50th Anniversary

Andrea Lowery, Executive Director of the Pennsylvania Historical & Museum Commission (PHMC) and Pat Browne, Secretary of the Department of Revenue, will visit the Railroad Museum of Pennsylvania to commemorate the site’s 50th anniversary with a press conference, ribbon cutting, opening a new exhibit and a new tour.

WHO:
Andrea Lowery, Executive Director, Pennsylvania Historical & Museum Commission
Pat Browne, Secretary, Department of Revenue
Scott Martin, State Senator, Commonwealth of Pennsylvania
Randall Spackman, Commissioner, Pennsylvania Historical & Museum Commission
Patrick C. Morrison, Director, Railroad Museum of Pennsylvania
Jim Donohue, Board of Directors President, Friends of the Railroad Museum
Stephen Ranck, Outreach Coordinator, Office of U. S. Representative Lloyd Smucker

WHEN:
Monday, April 22, 2025, at 11:00 AM

WHERE:
Railroad Museum of Pennsylvania
300 Gap Road
Strasburg, PA 17579

RSVP:
Press who are interested in attending please RSVP to jlosiewicz@pa.gov.

MIL OSI USA News –

April 22, 2025

MIL-OSI USA: Cassidy, Colleagues Reintroduce Bill to Expand Access to Historic Tax Credit

US Senate News:

Source: United States Senator for Louisiana Bill Cassidy
WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) re-introduced the Historic Tax Credit Growth & Opportunity (HTC-GO) Act to foster economic growth and local renewal by expanding the Historic Tax Credit.
“Our architectural heritage is a point of Louisiana pride that draws folks to visit our state and supports our economy. If we want to preserve it, we need the tools to do so. The Historic Tax Credit gives us those tools,” said Dr. Cassidy.
The HTC-GO Act:
Creates a new 30 percent transferable credit for small and rural projects while returning the base credit to be payable in the same year the revitalized property is placed into service. The bill lowers the threshold the cost of a project must meet to be eligible by eliminating the basis-adjustment requirement, which will bring the HTC in line with other credits such as the Low-Income Housing Tax Credit.
Further expands eligible renovation projects by decreasing the rehabilitation investment threshold from 100 percent to 50 percent of the project’s expenses. Project expenses would only have to exceed half of the project’s cost to qualify for the credit. It also amends rules for tax-exempt entities – such as health care centers, arts organizations, community services, and workforce training providers – to allow better access to the credit.
The bill is endorsed by the National Trust for Historic Preservation.
“The federal historic tax credit is one of our most powerful tools for historic preservation, economic development, and community revitalization,” said Carol Quillen, President and CEO of the National Trust for Historic Preservation. “The leadership of Senators Cassidy and Warner, with the strong support of long-time champions Senators Collins and Cantwell and Representatives LaHood and Souzzi, attests to the role the historic tax credit plays in reenergizing communities across the country. With the reintroduction of the Historic Tax Credit Growth and Opportunity Act, we take a crucial step towards empowering Americans in every state to invest in older and historic buildings, neighborhoods and commercial districts. These investments support small businesses, create housing, and generate economic opportunity as they build community connection and engagement. This time-tested community-serving incentive demonstrates how preservation efforts serve the public good. We’re grateful to our Congressional champions for their steadfast support of the federal historic tax credit and look forward to supporting this effort in upcoming tax discussions.”
Cassidy was joined by U.S. Senators Mark Warner (D-VA), Susan Collins (R-ME), and Maria Cantwell (D-WA) in introducing the bill.
Background
Elimination of the basis adjustment and a return to a one-year credit will increase the value of the credit and simplify transaction structures. Under current tax law, a building owner must subtract the amount of credits received from a building’s basis (the amount a property is worth for tax purposes) and receive the credit over 5 years. Eliminating this requirement will bring more value to all HTC projects by increasing the basis of rehabilitated historic buildings for building owners, providing additional depreciation and other tax benefits, and attracting more capital from tax credit investors.

MIL OSI USA News –

April 22, 2025

MIL-OSI United Kingdom: Scottish Green MSP tables ‘Mansion Tax’ proposals

Source: Scottish Greens

21 Apr 2025 Finance

The wealthiest people should pay the most to fund services.

Proposals for a ‘mansion tax’ on the sale of the million pound homes have been tabled in Parliament by Scottish Green MSP Ross Greer, with the money raised being used to protect public services.

Scottish Greens finance spokesperson Ross Greer has tabled amendments to the Housing Bill which would introduce a new band of Land and Buildings Transaction Tax on the most expensive homes.

Currently, the top rate of Land and Buildings Transaction Tax for residential properties is 12% from £750,000. The Scottish Greens are proposing a further rate from £1 million, which they have suggested be set at 15%.

Mr Greer said:

“A mansion tax on the biggest and most luxurious houses is one of many ways we can raise more money to support services like the NHS and schools while only impacting the very wealthiest people.

“There is more than enough wealth in Scotland to end injustices like child poverty tomorrow, but far too much of it is in the hands of a very small number of extremely rich people and big companies.

“The powers needed to tax them fairly mostly sit at Westminster rather than Holyrood, but we can use tools like Scottish property taxes to make sure the richest people in society pay a bit more when they are buying a new house.”

Mr Greer added:

“The Scottish Greens have already delivered an income tax system for Scotland which raises £1.7 billion more every year for public services like our schools and NHS. If we want to protect these services though, we need to go further.”

In 2023, the Scottish Greens delivered new powers to double Council Tax on second homes. The party has also doubled the Additional Dwelling Supplement, a tax paid when buying second and holiday homes.

Alongside the Mansion Tax plan, Ross Greer is also tabling proposals to end the tax exemptions currently enjoyed by two types of companies notorious for tax avoidance and property speculation and by foreign militaries buying property in Scotland, to create an additional charge for overseas buyers of Scottish properties and to allow councils to further increase Council Tax on holiday homes.

MIL OSI United Kingdom –

April 22, 2025

MIL-OSI USA: Promoting a Healthier California: Attorney General Bonta Announces New Funding Available for Local Public Agencies Through the 2025-2026 Tobacco Grant Program

Source: US State of California

Funding helps combat the illegal sale of tobacco products to youth

OAKLAND — California Attorney General Rob Bonta today announced that the California Department of Justice (DOJ) is now accepting proposals for the 2025-2026 Tobacco Grant Program, which will provide approximately $28.5 million in grant funding to eligible local agencies. The program aims to reduce the illegal sale of tobacco products, including e-cigarettes, to our youth. Any local public agency within the State of California that has authority to enforce tobacco-related state laws or local ordinances related to retail tobacco sales and marketing is eligible to apply. This may include police and sheriffs’ departments, district and city attorneys and county counsels, public health departments, cities, counties, and public school/college districts. Information on the application process is available at oag.ca.gov/tobaccogrants. DOJ will also hold a Zoom webinar on Wednesday, April 30 at 10:00 AM PT to provide guidance to those interested in applying for the Tobacco Grant Program. To RSVP for the webinar, please click here.

“At the California Department of Justice, we are committed to protecting our youth from the dangers posed by tobacco products. The reality is that, especially in recent years, companies have been aggressively going after our young people and attempting to turn as many of them as possible into regular customers,” said Attorney General Bonta. “I encourage local agencies to apply to the Tobacco Grant Program — it is a critical tool that allows us to collaborate and hold accountable those companies and individuals who violate our laws around tobacco products.”

Companies target our youth by making and marketing tobacco products with a myriad of kid-friendly flavors and loading those products with nicotine, a highly addictive chemical that harms the developing brains of children and young adults. Surveys show flavored tobacco products remain the products of choice for young people. In 2024, among students reporting current e-cigarette use, 87.6% used flavored products. Tobacco usage during adolescence increases the risk for lifelong nicotine addiction and adverse health consequences.

DOJ’s Tobacco Grant Program aims to reduce childhood addiction to tobacco products by supporting local partners who:

Enforce the statewide flavor ban and similar local flavor ordinances.
Prosecute and penalize retailers who violate statewide and local tobacco laws, including those who sell or market tobacco products to youth under the age of 21, including over the internet.
Conduct retail inspections to ensure compliance.

The program is funded by Proposition 56, the California Healthcare, Research and Prevention Tobacco Tax Act of 2016. To date, the Tobacco Grant Program has distributed approximately $212 million in grant funding to approximately 470 grantees through a competitive process.

Attorney General Bonta remains committed to combating the illegal marketing and sale of tobacco products. Just this year, he announced a lawsuit against Flumgio Technology Inc., Berkeley Int’l Business Crew, and their founder, Mr. Zaoyu Zhu, for importing, marketing, and selling the popular FLUM brand e-cigarettes, which are illegal under California’s retail flavor ban and lack Food and Drug Administration authorization. He also announced lawsuits against two California online retailers of e-cigarettes, Ejuicesteals and E-juice Vapor, Inc., alleging that they engaged in unlawful remote sales of tobacco products and failed to verify the age of California consumers properly. Finally, Assembly Bill 3218 — his sponsored bill to help ensure the successful implementation of the flavored tobacco ban — was signed into law by Governor Gavin Newsom last year.

MIL OSI USA News –

April 22, 2025

MIL-OSI Security: New Jersey Woman Sentenced to Five Years in Prison for Residential Marijuana Grows in Sacramento and Placer Counties

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

SACRAMENTO, Calif. — Xiu Ping Li, 48, residing in Skillman, New Jersey, was sentenced today by U.S. District Judge Daniel J. Calabretta to five years in prison and four years of supervised release for three counts of manufacturing marijuana, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, Li operated multiple residential marijuana grows in Sacramento and Placer Counties that yielded more than 8,000 marijuana plants and 21.4 pounds of processed marijuana found during the execution of search warrants in 2016 and 2017. Li also acknowledged using proceeds from a marijuana grow to buy another property to continue growing marijuana.

This case was the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, IRS Criminal Investigation, the Elk Grove Police Department, the Placer County Sheriff’s Office, and the Sacramento Police Department. Assistant United States Attorney Roger Yang prosecuted the case.

MIL Security OSI –

April 22, 2025

MIL-OSI Africa: Guideline to apply for R500 million spaza support fund

Source: South Africa News Agency

Government has called on eligible South African spaza shop owners in townships and rural areas who want to improve, expand, and sustain their shops to apply for assistance with the R500 million Spaza Shop Support Fund (SSSF).

This as government officially opened applications for the fund aimed at increasing the participation of South African owned spaza shops in the townships and rural areas retail trade sector.

READ | Government empowers spaza shops

What the support fund seeks to achieve:

•    It provides funding, training, business skills development, and technical support to help businesses compete effectively against larger retailers.
•    Offers funding of up to R300 000 per shop through a combination of grants and low-interest loans.
•    Assists shop owners in meeting hygiene and regulatory standards to ensure the provision of safe, high-quality products.
•    Encourage the adoption of digital payment systems, inventory management tools, and financial literacy programs to improve operational efficiency.
•    Facilitate wholesale aggregation, allowing spaza shops to access bulk purchasing advantages and competitive pricing.

What you need to qualify:

•    The owner of the spaza shop must be a South African citizen or naturalised as a South African citizen prior to 1994.
•    Spaza shops must operate within South Africa in rural and township areas and serve local communities.
•    The spaza shop must be registered with the local municipality in accordance with the relevant by-laws and business licensing requirements.
•    Registration with the Companies and Intellectual Property Commission (CIPC) will be optional based on the enterprise’s funding requirement. For enterprises receiving funding above R80 000 registration with CIPC will be required within a period of 6 months.
•    The business must have a valid registration with the South African Revenue Service (SARS) or alternatively be allowed a six-month transitional period.
•    The spaza shop must comply with all other relevant legislative and registration requirements necessary for its operation. (e.g. food preparation and health and safety standards)
•    The owner must actively manage the spaza shop.
•    Funding will prioritise entrepreneurs aged 18-35; female-owned spaza shops will receive priority consideration and businesses owned by individuals with disabilities will be given priority.

What does the support package for funding of up to R100 000 entail:

•    It includes a stock (grant) of a maximum of R40 000 for the initial purchase of stock via delivery channel partners.
•    Assets and infrastructure (blended grant and loan): a maximum R50 000 for the upgrading of building infrastructure, systems, refrigeration, shelving and security.
•    A maximum of R100 000 for training programmes that will include point of sale devices, business skills, digital literacy, credit health, food safety and business compliance.

What does the support package for funding of above R100 000 up to R300 000 for registered and compliant entities entail:

•    It includes a stock (grant) of a maximum of R40 000 for the initial purchase of stock via delivery channel partners.
•    A maximum of R250 000 for a funding split, 50% of the funding will be provided as a grant, and 50% will be provided as a free-interest loan.
•    A maximum of R100 000 for training programmes that will include point of sale devices, business skills, digital literacy, credit health, food safety and business compliance.
•    The fund will be jointly administered by the National Empowerment Fund (NEF) and the Small Enterprise Development Finance Agency (SEFDA).
•    In order to access the funding, applicants need to apply to the NEF and SEDFA through the prescribed application process outlined on the relevant institution’s website.

The following websites can be used to apply for funding:

•    Spaza Shop Support Fund – www.spazashopfund.co.za
•    NEF – www.nefcorp.co.za
•    SEDFA – https://systems.sefa.org.za/SMMEPortal/
•    Create an account on https://systemsnew.sefa.org.za/SMMEPortal/
•    Fill up all the required information on the registration page, read and accept the terms and cconditions and submit.

The contact details for the Spaza Shop Support Fund Call Centre are 011 305 8080 or via email: Spazafund@nefcorp.co.za

Contact details for the NEF Call Centre are 0861 843633, SEDFA Call Centre 012 748 9600 or an email can be sent to helpline@sefa.org.za.

Working hours: Mon – Fri: 9 am – 10 pm ; Sat: 9 am – 3 pm and Sunday: closed.

–SAnews.gov.za

MIL OSI Africa –

April 22, 2025

MIL-OSI Security: Houston ISD Official and Contractor Guilty in Nine-Year, Multimillion-Dollar Fraud Scheme

Source: Federal Bureau of Investigation (FBI) State Crime News

HOUSTON – A Houston federal jury has returned guilty verdicts against the former chief operating officer of the Houston Independent School District (HISD) and an HISD contractor, announced U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas (SDTX).

The jury deliberated for only six hours before convicting Brian Busby and Anthony Hutchison following a four-week trial. Both were convicted of conspiracy, bribery, filing false tax returns and witness tampering. Hutchison was also convicted of seven counts of wire fraud.

Over the course of the trial, the jury heard testimony from over 50 witnesses regarding the 33 charged counts involving bribery, false invoicing schemes, witness tampering and tax violations. Five former HISD officials testified, all of whom received bribe payments – Rhonda Skillern-Jones, former HISD Board of Education president; Derrick Sanders, officer of construction services; Alfred Hoskins, general manager of facilities, maintenance and operations; Gerron Hall, area manager for maintenance – south; and Luis Tovar, area manager for maintenance – north.

They described the pressure Busby put on them to provide Hutchison’s companies more work with HISD as well as larger projects following Hurricane Harvey. They recounted how they received tens of thousands of dollars over the course of 2017 and 2018 or longer.

Skillern-Jones testified Busby told her she should use Hutchison’s company on school projects with the funds remaining from the school bond passed in 2012. They agreed that if the contract was given to Hutchison, then they could make some money off the projects. Following completion of the Holland Middle School and Pleasantville Elementary School projects, Busby met with Skillern-Jones outside of a Walmart parking lot to give her $12,000 in cash from Hutchison as the bribery payment for allocating her district’s portion of bond funds for projects Hutchison performed.

Sanders, who also socialized with Busby and Hutchison, described taking trips to Las Vegas with them where he would be paid bribes and recounted their lavish purchases. On one occasion when Hutchison paid him, he exclaimed “next,” signaling Busby to come into the room for his payment.

Hoskins testified his maintenance team did not want to use Just Construction because it was often more expensive than other vendors, but Busby pressured him to give Hutchison’s company more work. Testimony further revealed they would bypass the rotation or bid process in selecting vendors and just provide work directly to Hutchison’s companies.

The jury also saw a handwritten ledger seized from Hutchison’s residence which contained detailed notes of all HISD projects awarded to Just Construction. It included entries for bribe payments and locations where they were made.

Detailed evidence also revealed the extensive invoicing fraud scheme Hutchison perpetrated through his company Southwest Wholesale. Since 2015, Southwest Wholesale had been the exclusive mowing and landscape contractor for HISD. The jury heard testimony demonstrating how Hutchison continuously overbilled for years for the approximately 150 schools he was contracted to mow. He also similarly charged HISD over twice the cost of what he paid for the supplies and marked that inflated charge up 20%. He consistently overbilled HISD over the course of years for a loss in excess of $6 million.

Busby also made excessive cash deposits to over 18 bank accounts which was far more than his legitimate income. He attempted to explain it based on other sources of income, but the jury was not convinced it accounted for the close to $3 million cash deposits made over the course of five years that were not declared in his income tax returns for 2015-2019.

Hutchison similarly filed false tax returns in 2017 and 2018 wherein he deducted improper business expenses. Specifically, Hutchison obtained cash he used to pay bribes to HISD officials by writing company checks to vendors, who cashed the checks and provided the cash to him. He falsely stated on the memo line that they were in payment for work performed on HISD properties. He then caused the checks to be improperly deducted on corporate tax returns as business expenses. In reality, they were cashed to pay extensive gambling debts and cash bribe payments.

Hoskins also testified about the steps Busby and Hutchison took to interfere with the investigation. Specifically, Busby called Hoskins and told him to tell investigators Busby had nothing to do with the award of the maintenance contract to Hutchison and his company. Hoskins also described how Hutchison advised him that police had a handwritten ledger with numbers on it and that Hoskins should say it was for gambling.

“HISD is the largest school district in the state, and the people of Houston trusted that district officials would spend their tax dollars wisely and carefully. Instead, Busby and Hutchinson defrauded the school district and the taxpayers of millions of dollars, doing so to line their own pockets,” said Ganjei. “People need to have faith in their public institutions, and they can become understandably cynical when they hear of public servants stealing from school kids by taking bribes and over-billing. SDTX aimed to restore that public trust by bringing this multi-year investigation to trial, which lasted over four weeks and involved over 50 witnesses. I’m proud of the trial team for delivering justice here, and I thank our incredible law enforcement partners. Most of all, I’d like to thank the jury for devoting their precious time and attention over the past month. This case demonstrates that theft from schools won’t be tolerated and that the public can have confidence in their institutions.”

“For years, Busby and Hutchison defrauded the largest public school system in Texas out of millions of dollars – money that was intended to benefit the students of HISD,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “In turn, Busby and Hutchison also defrauded the taxpayers whose hard-earned dollars were fraudulently diverted for their greed and personal gain. Public corruption cases like this one are challenging to investigate and prove and erode the trust we place on our public servants. At the end of the day, we want to make sure corrupt individuals like Busby and Hutchison are brought to justice. Today’s guilty verdict is a step towards that justice. I’m proud of FBI Houston’s public corruption squad for the results of its years-long investigation and thank them, and the U.S. Attorney’s Office, for their commitment to this case and to its thousands of victims.”

U.S. District Judge Andrew Hanen presided over the trial and has set sentencing for July 28. At that time, Busby and Hutchison face up to five, 10 and 20 years, respectively, for the conspiracy, bribery and witness tampering charges. Hutchison also faces up to 20 years for each count of wire fraud. All charges also carry a $250,000 maximum possible fine.

Skillern-Jones, 39, Houston; Sanders, 50, Hoskins, 58, Hall, 48, all of Missouri City; and Tovar, 39, Huffman have pleaded guilty to the conspiracy charges. They face up to five years in prison.

Busby and Hutchison were permitted to remain on bond pending sentencing.

The FBI and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Robert S. Johnson and Heather R. Winter are prosecuting the case.

MIL Security OSI –

April 22, 2025

MIL-OSI USA: Congress.gov New, Tip, and Top – April 2025

Source: US Global Legal Monitor

In our last Congress.gov release, we announced improved access to Congressional Research Service (CRS) products on Congress.gov. Building on those improvements, you can now filter your search results for CRS products by topic. You can also now set up a saved search email alert for CRS products and even download an audio file of a CRS product.

In addition, in this release, we are enhancing access to historical Senate Executive Journals in Congress.gov. These journals are now available in a convenient, page-turner environment that allows you to flip through the pages sequentially and jump to a particular page. You can find the complete list of enhancements below.

You can filter search results for CRS Products by topic on Congress.gov.

Enhancements

New – Historical Senate Executive Journals

Historical Senate Executive Journals from the 1st (1789 – 1791) through the 43rd Congress (1873 – 1875) are available to browse and search.
Find links to the Senate Executive Journal in the Congressional Activity section of the Browse page.
Using the search bar, select All Congresses and enter your word or phrase query. Check Senate Executive Journal under the Journals filter on your search results page.
Select a search result from the list to view a text version of the Senate Executive Journal page. Use the View Source Images link to display an image of the original print page.

Enhancement – CRS Products – Search

Filter search results from the CRS Products landing page search form by topic.
Search results sorted by relevancy display active reports before archived reports.

Enhancement – CRS Products – Saved Search Alerts

Include the CRS Products collection in your saved search and set up an alert to receive an email when a new CRS product matches your search query.

Enhancement – CRS Products – ReadSpeaker

Download an audio file to listen to the text of any CRS Product at your convenience.

Congress.gov Tip

There are several different ways to search Congress.gov. How do you know which one is best for your research? Check out “How to Pick a Search Page.”

Most-Viewed Bills

The most-viewed bills for the week of April 13, 2025 are below.

1.	H.R.22 [119th]	SAVE Act
2.	H.R.8281 [118th]	SAVE Act
3.	H.Con.Res.14 [119th]	Establishing the congressional budget for the United States Government for fiscal year 2025 and setting forth the appropriate budgetary levels for fiscal years 2026 through 2034.
4.	H.R.10127 [118th]	Restoring Trade Fairness Act
5.	H.R.1526 [119th]	NORRA of 2025
6.	H.R.1332 [118th]	Thirty-Two Hour Workweek Act
7.	H.R.2315 [119th]	Fairness for High-Skilled Americans Act of 2025
8.	H.R.561 [119th]	Overtime Pay Tax Relief Act of 2025
9.	H.Res.294 [119th]	Providing for consideration of the joint resolution (S.J. Res. 18) disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to “Overdraft Lending: Very Large Financial Institutions”; providing for consideration of the joint resolution (S.J. Res. 28) disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications”; providing for consideration of the bill (H.R. 1526) to amend title 28, United States Code, to limit the authority of district courts to provide injunctive relief, and for other purposes; providing for consideration of the bill (H.R. 22) to amend the National Voter Registration Act of 1993 to require proof of United States citizenship to register an individual to vote in elections for Federal office, and for other purposes; and for other purposes.
10.	H.R.482 [119th]	No Tax on Tips Act

Subscribe to In Custodia Legis – it’s free! – to receive interesting posts drawn from the Law Library of Congress’s vast collections and our staff’s expertise in U.S., foreign, and international law.

MIL OSI USA News –

April 22, 2025

MIL-OSI Security: Executive Vice President of Insurance Brokerage Pleads Guilty in $133 Million Affordable Care Act Fraud Scheme

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

A Florida executive pleaded guilty today for his role in a scheme to submit fraudulent applications to enroll consumers in Affordable Care Act insurance plans (ACA plans) that were fully subsidized by the government. The purpose of the scheme was to obtain millions of dollars in commission payments from the insurance company that operated the ACA plans. The federal government paid at least $133,900,000 in subsidies for fraudulently enrolled individuals.

According to court documents, Dafud Iza, 54, an executive vice president of an insurance brokerage firm, participated in a scheme to fraudulently enroll ineligible individuals into ACA plans that offered tax credits to eligible enrollees. These tax credits, or “subsidies,” could be paid by the federal government directly to insurance plans as a payment toward the plan’s monthly premium. The scheme involved submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Iza and his accomplices deceptively marketed subsidized ACA plans to ineligible consumers and falsely inflated consumers’ incomes to obtain the federal subsidies.

In furtherance of the scheme, Iza and his accomplices targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and knew that “street marketers” working on their behalf offered bribes to induce those individuals to enroll in subsidized ACA plans. Marketers working for Iza’s accomplices coached consumers on how to respond to application questions to maximize the subsidy amount paid by the federal government and provided addresses and social security numbers that did not match the consumers purportedly applying.

Iza pleaded guilty to one count of major fraud against the United States and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Acting Special Agent in Charge Brett Skiles of the FBI Miami Field Office; Acting Special Agent in Charge Jesus Barranco of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office; and Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.

The FBI, HHS-OIG, and IRS-CI are investigating the case.

Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

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

MIL Security OSI –

April 22, 2025

MIL-OSI: Blue Mountain Solidifies Executive Leadership with Seasoned GTM Appointments to Drive Next Phase of Growth and Innovation

Source: GlobeNewswire (MIL-OSI)

STATE COLLEGE, Pa., April 21, 2025 (GLOBE NEWSWIRE) — Blue Mountain, the leader in GMP-compliant Enterprise Asset Management (EAM) software for life sciences, is pleased to announce the appointment of Keith Pensabene as Chief Revenue Officer (CRO) and Christian Rockwell as Chief Marketing Officer (CMO). These strategic additions to the executive leadership team reinforce Blue Mountain’s commitment to growth, innovation, and delivering exceptional value to its customers.

Keith Pensabene brings extensive experience in revenue generation, sales leadership, and business development within the Life Sciences sector. Coming from leading companies including Accenture, IQVIA, Pilgrim QMS, and STARLIMS, Keith joined Blue Mountain as Chief Growth Officer where he was responsible for building strategic go-to-market partnerships to accelerate the company’s global footprint. As CRO, he will be responsible for driving Blue Mountain’s revenue strategy, optimizing sales performance, and expanding market opportunities. Pensabene’s proven track record of success in scaling businesses and fostering strong client relationships will be instrumental in accelerating the company’s growth trajectory.

Further bolstering the leadership team, Christian Rockwell brings a wealth of experience in building marketing organizations to support high growth technology businesses at companies including Advarra, Sparta Systems, Misys and Oracle. As CMO, Rockwell will oversee all aspects of marketing, including brand positioning, product marketing, digital marketing, and go-to-market initiatives. His expertise in executing data-driven marketing strategies will support Blue Mountain’s mission to enhance its industry presence as the market leader and connect with a broader audience.

“We are thrilled to welcome Keith and Christian to their roles at Blue Mountain,” said David Rode, CEO at Blue Mountain. “Their leadership, industry expertise, and strategic vision will be invaluable as we continue to innovate and scale as a business. We look forward to their contributions in driving sustainable growth and strengthening our market position.”

About Blue Mountain

Blue Mountain is the leader in enterprise asset management for Life Sciences. For over 35 years, Blue Mountain has been committed to delivering innovative and high-quality solutions that ensure regulatory compliance, enable operational efficiency and equipment uptime, and provide insights that optimize asset lifecycle management. Trusted by more than 400 Life Sciences companies, the Blue Mountain industry-leading cloud platform helps companies master end-to-end GMP asset management from set-up to installation and from training to validation. Blue Mountain is backed by Accel-KKR and headquartered in State College, PA.

For more information, please visit www.coolblue.com and follow the company on LinkedIn.

Media Contact:

Christian Rockwell
carockwell@coolblue.com

The MIL Network –

April 22, 2025

MIL-OSI Security: Miske Enterprise Member Sentenced to Seven Years in Federal Prison for Racketeering Conspiracy and Role in Kidnapping and Murder of Johnathan Fraser

Source: Federal Bureau of Investigation (FBI) State Crime News

HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Delia Fabro-Miske, 30, of Honolulu, was sentenced yesterday in federal court by U.S. District Judge Derrick K. Watson to 84 months of imprisonment, followed by 3 years of supervised release for racketeering conspiracy. Fabro-Miske pled guilty on January 12, 2024, in the middle of jury selection, to conspiring to conduct and participate in the conduct of the affairs of a racketeering enterprise, the “Miske Enterprise,” through racketeering activity that included bank fraud, obstruction of justice, and wire fraud.

Fabro-Miske admitted that she and codefendant Michael J. Miske committed bank fraud by submitting fraudulent paperwork in order to obtain leases for two vehicles that were used for one of Miske’s businesses. Fabro-Miske also obstructed a joint investigation into another of Miske’s businesses, Kamaaina Termite and Pest Control (“KTPC”), which was conducted by the Environmental Protection Agency and the Hawaii Department of Agriculture (“HDA”). At Miske’s direction, Fabro-Miske submitted to HDA falsified fumigation logs, which claimed that she was the certified applicator of chemicals on hundreds of jobs. In reality, most of the listed jobs were completed by unlicensed applicators. Fabro-Miske also fraudulently obtained Social Security Administration (“SSA”) survivor benefits at Miske’s direction by having her wages at KTPC decreased below the SSA benefits income threshold. At the same time, Miske paid Fabro-Miske in benefits that were not reported to the SSA or Internal Revenue Service.

Additionally, according to information provided to the Court, in or about 2017, Miske placed Fabro-Miske in charge of his businesses in an attempt to preserve and conceal his assets in anticipation of federal prosecution. In practice, Fabro-Miske carried out Miske’s wishes and acted at his direction. Fabro-Miske assisted in a fraudulent scheme committed through Miske’s businesses, which involved submitting false filings to the Department of Commerce and Consumer Affairs that permitted the businesses to operate under fraudulently obtained and maintained licenses. Miske Enterprise members then falsely represented to customers that Miske’s businesses were properly licensed. Between 2017 and 2020, the businesses generated millions of dollars in income annually. As the head of Miske’s businesses, Fabro-Miske was also responsible for the proper and safe application of pesticides and other chemicals at customers’ homes. Information provided to the Court, however, showed that fumigations were regularly conducted without proper supervision or chemicals. Chief Judge Watson stated that Fabro-Miske’s work at Miske’s businesses “funded any number of crimes that we heard months and months of testimony” about in Miske’s trial, and her assistance “allowed Mr. Miske to run rampant in this community.”

Finally, the Court determined that Fabro-Miske was also responsible for participating in a conspiracy with other Miske Enterprise members to kidnap and murder 21-year-old Johnathan Fraser. According to information provided to the Court, Caleb Miske – Miske’s son and Fabro-Miske’s husband – and Fraser were driving together when the two were involved in a car crash in November 2015. Caleb Miske ultimately passed away from his injuries, and Miske blamed Fraser for his son’s death and enlisted several Miske Enterprise members to assist in his plan to murder Fraser. As part of that plan, Miske directed Fabro-Miske to rekindle her friendship with Fraser and his girlfriend and to lure them into living with her at an apartment paid for by Miske. On July 30, 2016, Fabro-Miske took Fraser’s girlfriend on a “spa day” paid for by Miske, ensuring that Fraser would be isolated when he was kidnapped. Fraser was never seen again after that day. Due to Miske’s death in December 2024, Chief Judge Watson explained that “the person most involved in Mr. Fraser’s demise will not ever be sentenced by this Court.” While Chief Judge Watson found that Fabro-Miske did not “directly and personally kill” Fraser and determined her to be a minimal participant in the kidnapping and murder conspiracy, he noted that there was “no doubt” that her actions led to Fraser’s murder and that the circumstances painted a “strong and clear picture” of a conspiracy to commit kidnapping murder in aid of racketeering.

Fabro-Miske was charged alongside twelve other defendants, all of whom pled guilty except for Miske, who proceeded to trial and was found guilty of racketeering conspiracy, murder, and 11 other felony charges on July 18, 2024. Seven other members and associates of the Miske Enterprise pled guilty to various offenses in related cases.

“Delia Fabro-Miske was an integral member of the Miske Enterprise, which terrorized, exploited, and defrauded our community for decades. She participated in Miske’s bank frauds, social security fraud, falsification of fumigation records, and the concealment of Miske’s illegally obtained assets, and was a vital cog in the plot to murder of Johnathan Fraser. Fabro-Miske’s sentence yesterday demonstrates that those who occupy even the lower rungs of Hawaii’s criminal enterprises will pay a steep price when they face justice in federal court,” said Acting U.S. Attorney Ken Sorenson. “The dismantling of the Miske Enterprise represents one of the most significant law enforcement efforts in the history of Hawaii law enforcement, and it would not have been possible without the tremendous and dedicated work of our partners at the Honolulu Division of the Federal Bureau of Investigation, Internal Revenue Service, Homeland Security Investigations, and Environmental Protection Agency, among many others.”

“Ms. Fabro-Miske was a key member in the Miske Enterprise fraud schemes, actively participating in defrauding the government and taxpayers,” said FBI Honolulu Special Agent in Charge David Porter. “This sentencing reflects years of collaboration between FBI Honolulu and our law enforcement partners. The FBI remains steadfast in its commitment to dismantle violent criminal enterprises, hold their members accountable, and pursue justice for victims.”

“Our investigators follow the money because criminal organizations profit at the expense of public safety,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Ms. Fabro-Miske’s racketeering conviction is a reminder that, in the end, crime really doesn’t pay.”

“The sentencing of Ms. Fabro-Miske underscores HSI’s commitment to disrupting and dismantling criminal organizations in Hawaii,” said HSI Special Agent in Charge Lucy Cabral-DeArmas. “HSI will continue to hold accountable those who significantly harm our communities by breaking federal laws. By bringing justice to the Miske Enterprise, HSI sends the message that we will not tolerate any violent activity on our islands.”

“By falsifying documents, defendant obstructed EPA and the state’s criminal investigation of a pesticide applicator that illegally applied restricted use pesticides,” said Benjamin Carr, Special Agent in Charge for the Environmental Protection Agency’s Criminal Investigation Division in Hawaii. “Yesterday’s sentencing reflects the seriousness of defendant’s fraudulent conduct and the importance of complying with pesticide reporting requirements so EPA and Hawaii Department of Agriculture can keep our communities safe.”

This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligencedriven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Criminal Investigation Division of the Environmental Protection Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Honolulu Police Department, the Drug Enforcement Administration, the Coast Guard Investigative Service, the United States Marshals Service Fugitive Task Force, the Cybercrime Lab of the Department of Justice Criminal Division Computer Crime and Intellectual Property Section, the Hawaii Criminal Justice Data Center, the Honolulu Fire Department, the Hawaii National Guard, 93rd Civil Support Team, the Office of Investigations–Office of the Inspector General for the Social Security Administration, and the Department of Justice Office of the Inspector General.

Assistant U.S. Attorneys Mark Inciong, Michael Nammar, KeAupuni Akina, and Aislinn Affinito prosecuted the case.

MIL Security OSI –

April 22, 2025

MIL-OSI Global: Endowments aren’t blank checks – but universities can rely on them more heavily in turbulent times

Source: The Conversation – USA – By Ellen P. Aprill, Senior Scholar in Residence at the UCLA Law School’s Lowell Milken Center For Philanthropy And Nonprofit Law, University of California, Los Angeles

The Trump administration is demanding that at least 60 U.S. colleges and universities change their policies or lose out on billions of dollars in federal funding.

In Harvard University’s case, the government has accused the Ivy league school – so far without providing any specific evidence – of violating some students’ civil rights by allowing other students to engage in what the authorities characterize as antisemitic speech. The government has demanded broad oversight of Harvard’s admissions policies, along with changes in its hiring processes and campus culture.

Harvard stands to lose out on more than US$2.2 billion. It may seem to be better insulated from this pressure than many other schools because it has the nation’s largest educational endowment – a reservoir of stocks, bonds and other financial assets that helps fund its operations, research and scholarships. Harvard’s endowment totaled more than $53 billion in 2024.

As a nonprofit law scholar, who served in the Treasury Department’s Office of Tax Policy in the 1980s, I study and write about both state and federal law as it applies to nonprofit organizations. I believe that the law permits most colleges and universities to increase spending from their endowments in light of the financial pressures so many of them are facing.

Precedents for boosting endowment spending

Not all endowments are alike.

They tend to be composed of an array of smaller funds, some of which are subject to legal restrictions that make it impossible for the schools they support to freely use those assets.

Universities must respect the limits donors put on their gifts, such as tying them to specific scholarships, funding jobs held by certain kinds of professors or supporting the construction or maintenance of a particular building.

It’s up to a university’s governing board to decide how much of the school’s endowment will be spent in a given year.

As Harvard’s financial report for its 2024 fiscal year puts it: “There is a common misconception that endowments, including Harvard’s, can easily be accessed like checking accounts.” That is definitely not the case.

Nonetheless, some college and university boards did allow increased endowment spending at the height of the COVID-19 pandemic and the Great Recession, which lasted from late 2007 until mid-2009.

During that downturn and the financial crisis that precipitated it, the value of endowments, along with most financial assets, plummeted.

About 80% of Harvard’s 14,000 separate endowment funds are reserved for “specific programs, departments or purposes.” But others are less restricted, Harvard has stated in the financial reports it makes available to the public.

While it’s always important to proceed with care when spending money reserved for use on a rainy day or to ensure the long-term existence of a revered institution, most colleges and universities are freer to dip into their endowments than they may realize when conditions get stormy.

Leeway in an important law

In all states except Pennsylvania, U.S. endowments are subject to a 2006 model law known as the Uniform Prudent Management of Institutional Funds Act.

Under this law, managing and investing an endowment requires the university to consider its charitable purposes and financial needs, while respecting the intentions of the donors who provided its assets. These are state laws, not federal statutes. In most states, a university may spend as much of an endowment fund as it deems “prudent.”

Exercising that prudence requires the consideration of several factors.

They include the purposes of the institution as a whole and the particular endowment fund, prevailing economic conditions, and what other financial resources the institution can tap. However, in almost one-third of states, including California and New York, annually spending more than 7% of an endowment’s fair market value, measured by a three-year average, is presumed to be imprudent.

But that isn’t a legal maximum because the model law’s drafters noted that “circumstances in a particular year” could easily void that presumption. Based on my study of nonprofit law, including the laws that apply to higher education, I’m confident that this caveat could easily apply to the Trump administration’s education-related spending cuts in 2025, just as it did during the pandemic and the Great Recession.

What’s more, endowment spending rate by universities in 2024 was 4.8%. As a result, many universities, including those in states with a 7% cap on prudent spending, will likely be able to increase their use of endowment funds to maintain their budgets at prior levels.

In addition, living donors can release any restriction they placed on the funds they gave universities that are still held in their endowments. Even when those funds are from donors who have died, a university can ask a court to release restrictions that have become impractical or wasteful.

The Uniform Prudent Management of Institutional Funds Act also permits institutions to lift restrictions on all endowment funds that are more than 20 years old and relatively small. This amount varies from state to state and typically ranges between $25,000 and $100,000

Archon Fung, a John F. Kennedy School of Government professor, addresses students, faculty and other members of the Harvard University community on April 17, 2025.
AP Photo/Charles Krupa

A bias toward accumulating

In addition to Harvard, other examples of the largest higher education endowments include Yale with $41 billion, Princeton with $34 billion and Columbia, which has some $15 billion. All three are among the 60 schools the Education Department is investigating for allegedly failing to “protect Jewish students on campus.”

Why do the boards of even these universities tend to hesitate to dip deeply into their endowments when their revenue declines?

One explanation is that because endowments can enhance a university’s prestige, its leaders and endowment donors have a bias toward accumulating rather than spending. Another is that board members have an obligation to protect their institutions’ long-term viability. Boards also bear a responsibility to preserve funds for a future rainy day, no matter how severe the current turbulence may be, how large the endowment has become or how successful the school’s current fundraising efforts are.

That may explain why Harvard is reportedly in talks with investment banks about issuing $750 million in bonds that will allow the school to meet its spending needs without dipping so deeply into its endowment.

More attacks could be on the way

At the same time, the Trump administration’s trade, fiscal and other policies may continue to roil financial markets, reducing the value of university endowments, for months or years to come.

The federal government is reportedly looking into whether it can revoke Harvard’s tax-exempt status, a drastic move that would have no comparable precedents.

In mid-April 2025, Harvard began to push back on the Trump administration’s demands, saying that they violate the free speech rights protected by the Constitution’s First Amendment and “invade university freedoms long recognized by the Supreme Court.” Harvard’s donors have responded to the resistance of the school’s leaders with a flurry of new gifts.

In my view, it’s reasonable for colleges and universities to consider stepping up their endowment spending due to the Trump administration’s actions that could interfere with higher education revenue. Increasing endowment payouts now could ease, although not fully solve, the mounting crises that colleges and universities of all kinds now face.

The John F. Kennedy School of Government, commonly referred to as Harvard Kennedy School, is a member of The Conversation U.S.

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

– ref. Endowments aren’t blank checks – but universities can rely on them more heavily in turbulent times – https://theconversation.com/endowments-arent-blank-checks-but-universities-can-rely-on-them-more-heavily-in-turbulent-times-254909

MIL OSI – Global Reports –

April 22, 2025

MIL-OSI: TransUnion Appoints Brian Silver Executive Vice President of Marketing Solutions

Source: GlobeNewswire (MIL-OSI)

CHICAGO, April 21, 2025 (GLOBE NEWSWIRE) — Brian Silver joined TransUnion (NYSE: TRU) as Executive Vice President of Marketing Solutions, effective April 7, 2025. He reports to the newly appointed Chief Global Solutions Officer, Mohamed Abdelsadek.

As Executive Vice President, Silver will drive the vision, strategy and innovation behind TransUnion’s TruAudience® products. TruAudience enables data-driven marketing and measurement with a suite of privacy-first identity resolution, data enrichment, audience targeting and advanced analytics solutions.

“TruAudience is a leading solution suite for marketing, powered by TransUnion’s OneTru platform—giving it amazing potential for continuing innovation,” said Abdelsadek. “Brian’s deep knowledge and experience are essential in steering that innovation to address the evolving challenges marketers face in identifying audiences and measuring campaigns in a privacy-focused environment.”

Matt Spiegel, EVP of TruAudience Growth Strategy, added, “Brian is an amazing addition for TransUnion. I look forward to working closely with him, Mohamed, and the market-facing teams to drive growth of the TruAudience portfolio.”

Silver joins TransUnion from Oracle Advertising, where he served as Global Vice President, Strategy and Business Development. Over the past 25 years, Silver has established himself as a leader in identity-based digital marketing. His past roles include serving as President at LiveIntents; Vice President, Global Revenue Operations at Verizon Media; and Vice President, Global Business Planning and Operations, Communications Products, at Yahoo!.

“I am thrilled to join TransUnion and lead the TruAudience team in driving forward our vision and strategy,” said Silver. “With the power of TransUnion’s OneTru platform, we are uniquely positioned to solve for the identity resolution, audience discovery, and measurement challenges required to deliver effective marketing. I look forward to leveraging my experience to help our clients achieve their goals and drive business growth for TransUnion.”

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business

Contact	Dave Blumberg
	TransUnion
E-mail	david.blumberg@transunion.com
Telephone	312-972-6646

The MIL Network –

April 22, 2025

MIL-OSI: Private Bancorp of America, Inc. Announces Strong Net Income and Earnings Per Share for First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Highlights

Net income for the first quarter of 2025 was $10.6 million, compared to $10.7 million in the prior quarter and $7.9 million in the first quarter of 2024. Net income for the first quarter of 2025 represents a return on average assets of 1.74% and a return on average tangible common equity of 18.74%
Diluted earnings per share for the first quarter of 2025 was $1.80, compared to $1.82 in the prior quarter and $1.36 in the first quarter of 2024
Total deposits were $2.19 billion as of March 31, 2025, an increase of $57.7 million or 2.7% from December 31, 2024, which included a reduction in brokered deposits of $96.9 million. Total deposits increased 15.1% year over year. Core deposits were $2.05 billion as of March 31, 2025, an increase of $154.6 million or 8.2% from December 31, 2024. Core deposits increased 27.5% year over year
Total cost of deposits was 2.22% for the first quarter of 2025, a decrease from 2.36% in the prior quarter and 2.61% in the first quarter of 2024. The spot rate for total deposits was 2.11% as of March 31, 2025, compared to 2.29% at December 31, 2024. Total cost of funding sources was 2.29% for the first quarter of 2025, a decrease from 2.45% in the prior quarter and 2.70% in the first quarter of 2024
Loans held-for-investment (“HFI”) totaled $2.08 billion as of March 31, 2025, a decrease of $6.5 million or 0.3% from December 31, 2024. Loans HFI increased 9.0% year over year
Net interest margin was 4.61% for the first quarter of 2025, compared to 4.67% in the prior quarter and 4.31% in the first quarter of 2024
Provision for credit losses for the first quarter of 2025 was $0.3 million, compared to $17 thousand for the prior quarter and $0.2 million for the first quarter of 2024. The allowance for loan losses was 1.27% of loans HFI as of March 31, 2025 compared to 1.31% at December 31, 2024
As of March 31, 2025, criticized and classified loans totaled $40.8 million, or 1.96% of total loans, up from $24.7 million, or 1.18% of total loans, in the prior quarter
Tangible book value per share was $40.29 as of March 31, 2025, an increase of $1.89 since December 31, 2024 primarily as a result of strong earnings. Tangible book value per share increased 4.9% quarter-over-quarter and 20.1% year over year.

LA JOLLA, Calif., April 21, 2025 (GLOBE NEWSWIRE) — Private Bancorp of America, Inc. (OTCQX: PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the first fiscal quarter ended March 31, 2025. The Company reported net income of $10.6 million, or $1.80 per diluted share, for the first quarter of 2025, compared to $10.7 million, or $1.82 per diluted share, in the prior quarter, and $7.9 million, or $1.36 per diluted share, in the first quarter of 2024.

Rick Sowers, President and CEO of the Company and the Bank stated, “We continue to be pleased by the Company and the Team’s performance. Strong growth in core deposits over the past year continues and we remain focused on building strong Relationships with our Clients. Loan demand was soft in Q1, as Clients and financial markets digest the current economy and prospects for future growth and stability. We remain optimistic that markets will settle, and demand will return. In the meantime, we are focused on providing the Distinctively Different Service our Clients and Prospects are seeking, getting more efficient and effective in our business through technology, continuous process improvement and building a strong Team throughout the Bank.”

Sowers added, “The Bank was recognized throughout the last year for superior financial performance and industry leading service metrics. These recognitions highlight CalPrivate Bank’s dedication to excellence, innovation, delivering Client-focused banking solutions and enhancing shareholder value:

#1 for both Return on Assets (ROA) and Return on Equity (ROE) among banks with less than $5 billion in assets
#1 SBA 504 Community Bank Lender in the United States
#10 Best U.S. Bank by Bank Director’s RankingBanking^®
Client Net Promoter Score of 81 (World Class)
Bauer 5 Star Rating
2025 Best 50 OTCQX

“As Los Angeles continues to tackle the enormous task of cleaning up after the devastating fires, CalPrivate Bank remains committed to being a partner to our Clients and the Communities we serve.”

“As our economy transitions based on priorities of the new administration in Washington DC, and global economic uncertainties increase, management and the board are diligently assessing and acting upon potential future risks and market opportunities. The Bank continues to produce top tier financial results by seeking improved productivity through technology investments, streamlined systems and processes, and hiring top bankers in existing and potential new markets and market segments. We continue to prioritize unparalleled Client service and creative Solutions for our loyal and growing client base. We continue to support a broad range of non-profit organizations in the communities we serve, both through team member volunteering activities and financial resources. Our Team takes great pride in doing well for shareholders by doing good for clients and community,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

STATEMENT OF INCOME

Net Interest Income

Net interest income for the first quarter of 2025 totaled $27.7 million, an increase of $0.3 million or 1.2% from the prior quarter and an increase of $5.0 million or 21.8% from the first quarter of 2024. The increase from the prior quarter was due to a $0.5 million decrease in interest expense, resulting from a 22 basis point reduction in the cost of interest-bearing liabilities, primarily driven by a 14 basis point decrease in the cost of total deposits.

Net Interest Margin

Net interest margin for the first quarter of 2025 was 4.61%, compared to 4.67% for the prior quarter and 4.31% in the first quarter of 2024. The 6 basis point decrease in net interest margin from the prior quarter was primarily due to lower yields on interest-earning assets and a decrease in prepayment-penalty fees. The yield on interest-earning assets was 6.70% for the first quarter of 2025 compared to 6.89% for the prior quarter, and the cost of interest-bearing liabilities was 3.14% for the first quarter of 2025 compared to 3.36% in the prior quarter. The cost of total deposits was 2.22% for the first quarter of 2025 compared to 2.36% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.99% in the first quarter of 2025 compared to 2.07% in the prior quarter. The spot rate for total deposits was 2.11% as of March 31, 2025, compared to 2.29% at December 31, 2024.

Provision for Credit Losses

Provision expense for credit losses for the first quarter of 2025 was $0.3 million, compared to $17 thousand in the prior quarter and $0.2 million in the first quarter of 2024. The provision expense for loans HFI for the first quarter of 2025 was $0.5 million, primarily reflecting heightened macroeconomic uncertainty incorporated into our forecasts. This was offset by a $0.2 million reversal for unfunded commitments due to increased line of credit utilization that resulted in lower unfunded commitment balances. For more details, please refer to the “Asset Quality” section below.

Noninterest Income

Noninterest income was $1.6 million for the first quarter of 2025, compared to $1.9 million in the prior quarter and $1.4 million in the first quarter of 2024. SBA loan sales for the first quarter of 2025 were $8.3 million with a 10.86% average trade premium resulting in a net gain on sale of $469 thousand, compared with $14.9 million with a 11.45% average trade premium resulting in a net gain on sale of $932 thousand in the prior quarter.

Noninterest Expense

Noninterest expense was $14.1 million for the first quarter of 2025, compared to $14.2 million in the prior quarter and $12.8 million in the first quarter of 2024. The efficiency ratio was 47.90% for the first quarter of 2025 compared to 48.34% in the prior quarter and 52.84% in the first quarter of 2024. The slight decrease in the efficiency ratio from the prior quarter was due to the decrease in noninterest expense.

The Company remains committed to making investments in the business, including technology, marketing, and staffing. Inflationary pressures and low unemployment continue to have an impact on rising wages as well as increased costs related to third party service providers, which we proactively monitor and manage.

Provision for Income Tax Expense

Provision for income tax expense was $4.4 million for the first quarter of 2025, compared to $4.5 million for the prior quarter. The effective tax rate for the first quarter of 2025 was 29.5%, compared to 29.6% in the prior quarter and 29.5% in the first quarter of 2024.

STATEMENT OF FINANCIAL CONDITION

As of March 31, 2025, total assets were $2.48 billion, an increase of $58.9 million since December 31, 2024. The increase in assets from the prior quarter was primarily due to higher cash and due from banks and investment securities, partially offset by lower loans receivable. Our total cash and due from banks increased to $218.5 million as of March 31, 2025, an increase of $54.6 million or 33.3% since December 31, 2024, primarily due to strong growth in core deposits along with lower loan demand. Investment securities available-for-sale (“AFS”) were $156.3 million as of March 31, 2025, an increase of $11.1 million or 7.6% since December 31, 2024, primarily as a result of new securities purchased. As of March 31, 2025, the net unrealized loss on the AFS investment securities portfolio, which is comprised mostly of US Treasury and Government Agency debt, was $10.1 million (pre-tax) compared to a loss of $12.1 million (pre-tax) as of December 31, 2024. The average duration of the Bank’s AFS portfolio is 3.8 years. The Company has no held-to-maturity securities. Loans HFI totaled $2.08 billion as of March 31, 2025, a decrease of $6.5 million or 0.3% since December 31, 2024, reflecting lower loan production as borrowers deferred new financings amid economic and interest-rate uncertainty as well as wildfire-related disruptions in Southern California.

Total deposits were $2.19 billion as of March 31, 2025, an increase of $57.7 million since December 31, 2024. During the quarter, core deposits increased by $154.6 million, which was driven by a $108.9 million increase in interest-bearing core deposits (including balances in the Intrafi ICS and CDARS programs) and a $45.7 million increase in noninterest-bearing core deposits. The deposit mix has continued to shift due to short-term interest rates remaining elevated compared to recent years. Noninterest-bearing deposits represent 29.2% of total core deposits. Offsetting the increase to total deposits from core deposits, brokered deposits decreased by $96.9 million. Uninsured deposits, net of collateralized and fiduciary deposit accounts, represent 50.1% of total deposits as of March 31, 2025.

As of March 31, 2025, total available liquidity was $2.1 billion or 192.8% of uninsured deposits, net of collateralized and fiduciary deposit accounts. Total available liquidity is comprised of $366 million of on-balance sheet liquidity (cash and investment securities) and $1.8 billion of unused borrowing capacity.

Asset Quality and Allowance for Credit Losses (“ACL”)

As of March 31, 2025, the allowance for loan losses was $26.4 million or 1.27% of loans HFI, compared to $27.3 million or 1.31% of loans HFI as of December 31, 2024. The decrease in the coverage ratio from December 31, 2024 is due primarily to a $1.1 million partial charge-off of a nonaccrual loan that previously had a specific reserve of $2.0 million. The Company continues to have strong credit metrics and its nonperforming assets are 0.63% of total assets as of March 31, 2025 compared to 0.47% as of December 31, 2024. The reserve for unfunded commitments was $1.3 million as of March 31, 2025, compared to $1.5 million as of December 31, 2024. The decrease in the reserve for unfunded commitments was due to lower unfunded commitment balances (driven by higher credit line usage). Given the credit quality of the loan portfolio, management believes we are sufficiently reserved.

At March 31, 2025 and December 31, 2024, there were no doubtful credits and classified assets were $27.8 million and $14.9 million, respectively. Total classified assets consisted of 20 loans as of March 31, 2025, which included 17 loans totaling $24.7 million secured by real estate with a weighted average LTV of 52.7%, of which 11 loans totaling $16.4 million had SBA guarantees. The remaining three loans were $3.1 million of commercial and industrial loans, one of which was an unsecured loan on nonaccrual status with a carrying value of $1.5 million and a specific reserve of $1.0 million (net of a $1.1 million partial charge off).

The Bank’s loan portfolio does include assets that are in the affected areas of Los Angeles devastated by wildfires. However, based on assessments performed to date, management does not believe there is a material impact to the financial statements.

Capital Ratios ⁽²⁾

The Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:

	March 31, 2025⁽²⁾	December 31, 2024
CalPrivate Bank
Tier I leverage ratio	10.35%	10.39%
Tier I risk-based capital ratio	11.75%	11.29%
Total risk-based capital ratio	13.00%	12.54%

(2) March 31, 2025 capital ratios are preliminary and subject to change.

About Private Bancorp of America, Inc. (OTCQX: PBAM)

PBAM is the holding company for CalPrivate Bank, which operates offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo, and Beverly Hills, as well as through efficient digital banking services. CalPrivate Bank is driven by its core values of building client Relationships based on superior funding Solutions, unparalleled Service, and mutual Trust. The Bank caters to high-net-worth individuals, professionals, closely-held businesses, and real estate entrepreneurs, delivering a Distinctly Different™ personalized banking experience while leveraging cutting-edge technology to enhance our clients’ evolving needs. CalPrivate Bank is in the top tier of customer service survey ratings in the nation, scoring almost 3x higher than the median domestic bank. The Bank offers comprehensive deposit and treasury services, rapid and creative loan options including various portfolio and government-guaranteed lending programs, cross border banking, and innovative, unique technologies that drive enhanced client performance. CalPrivate Bank has been recognized by Bank Director’s RankingBanking® as the 10^th best bank in the country and the #1 bank in its asset class for both return on assets (ROA) and return on equity (ROE). CalPrivate Bank was also ranked in the top 5% of banks in the U.S. with assets between $2B and $10B by American Banker. Additionally, CalPrivate Bank is a Bauer Financial 5-star rated bank, an SBA Preferred Lender, and has been honored as Community Bank 504 Lender of the Year by the NADCO Community Impact Awards, exemplifying excellence in the banking industry. These prestigious rankings highlight the Bank’s commitment to delivering exceptional banking services and setting new industry standards.

CalPrivate Bank’s website is www.calprivate.bank.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP, including adjusted income before provision for income taxes, adjusted net income, adjusted diluted earnings per share (“Adjusted EPS”), efficiency ratio, adjusted efficiency ratio, pretax pre-provision net revenue, average tangible common equity, adjusted return on average assets, return on average tangible common equity and adjusted return on average tangible common equity. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s results of operations and financial condition and to enhance investors’ overall understanding of such results of operations and financial condition, to permit investors to effectively analyze financial trends of our business activities, and to enhance comparability with peers across the financial services sector. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of the most comparable GAAP financial measures to non-GAAP financial measures is included in the accompanying financial tables.

Investor Relations Contacts

Rick Sowers
President and Chief Executive Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(424) 303-4894

Cory Stewart
Executive Vice President and Chief Financial Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(206) 293-3669

Safe Harbor Paragraph

This communication contains expressions of expectations, both implied and explicit, that are “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We caution you that a number of important factors could cause actual results to differ materially from those in the forward-looking statements, especially given the current turmoil in the banking and financial markets. These factors include the effects of depositors withdrawing funds unexpectedly, counterparties being unable to provide liquidity sources that we believe should be available, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, including competition in lending and deposit acquisition, the unpredictability of fee income from participation in SBA loan programs, the effects of bank failures, liquidations and mergers in our markets and nationally, our ability to successfully integrate and develop business through the addition of new personnel, whether our efforts to expand loan, product and service offerings will prove profitable, system failures and data security, whether we can effectively secure and implement new technology solutions, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forward-looking statements, and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise. These factors could cause actual results to differ materially from what we anticipate or project. You should not place undue reliance on any such forward-looking statement, which speaks only as of the date on which it was made. Although we believe in good faith the assumptions and bases supporting our forward-looking statements to be reasonable, there can be no assurance that those assumptions and bases will prove accurate.

PRIVATE BANCORP OF AMERICA, INC. CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands)

	Mar 31, 2025			Dec 31, 2024			Mar 31, 2024
Assets
Cash and due from banks	$	34,720		$	16,528		$	13,136
Interest-bearing deposits in other financial institutions		16,155			10,419			34,790
Interest-bearing deposits at Federal Reserve Bank		167,606			136,929			93,575
Total cash and due from banks		218,481			163,876			141,501
Interest-bearing time deposits with other institutions		4,213			4,189			4,032
Investment debt securities available for sale		156,346			145,238			114,067
Loans held for sale		2,066			3,008			383
Loans, net of deferred fees and costs and unaccreted discounts		2,078,653			2,085,149			1,906,992
Allowance for loan losses		(26,437	)		(27,267	)		(24,693	)
Loans held-for-investment, net of allowance		2,052,216			2,057,882			1,882,299
Federal Home Loan Bank stock, at cost		9,586			9,586			8,915
Operating lease right of use assets		6,383			6,819			2,765
Premises and equipment, net		2,432			2,335			1,804
Servicing assets, net		1,993			2,087			2,203
Accrued interest receivable		8,148			7,993			7,931
Other assets		21,009			20,998			21,877
Total assets	$	2,482,873		$	2,424,011		$	2,187,777

Liabilities and Shareholders’ Equity
Liabilities
Noninterest bearing	$	599,095		$	553,405		$	516,294
Interest bearing		1,593,014			1,581,054			1,388,381
Total deposits		2,192,109			2,134,459			1,904,675
FHLB borrowings		16,000			28,000			53,000
Other borrowings		17,970			17,969			17,963
Accrued interest payable and other liabilities		21,559			20,049			18,107
Total liabilities		2,247,638			2,200,477			1,993,745

Shareholders’ equity
Common stock		76,156			75,377			74,105
Additional paid-in capital		3,712			4,393			4,108
Retained earnings		162,462			152,252			124,464
Accumulated other comprehensive (loss) income, net		(7,095	)		(8,488	)		(8,645	)
Total shareholders’ equity		235,235			223,534			194,032
Total liabilities and shareholders’ equity	$	2,482,873		$	2,424,011		$	2,187,777

PRIVATE BANCORP OF AMERICA, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts)

	For the three months ended
	Mar 31, 2025		Dec 31, 2024		Mar 31, 2024
Interest Income
Loans	$	36,565	$	37,259	$	33,006
Investment securities		1,505		1,510		979
Deposits in other financial institutions		2,198		1,661		1,799
Total interest income		40,268		40,430		35,784

Interest Expense
Deposits		11,899		12,297		12,130
Borrowings		637		726		886
Total interest expense		12,536		13,023		13,016

Net interest income		27,732		27,407		22,768
Provision for credit losses		299		17		233
Net interest income after provision for credit losses		27,433		27,390		22,535

Noninterest income:
Service charges on deposit accounts		557		558		388
Net gain on sale of loans		469		932		681
Other noninterest income		587		456		357
Total noninterest income		1,613		1,946		1,426

Noninterest expense:
Compensation and employee benefits		9,748		9,539		8,861
Occupancy and equipment		844		847		770
Data processing		1,326		1,195		1,058
Professional services		508		573		488
Other expenses		1,629		2,036		1,606
Total noninterest expense		14,055		14,190		12,783
Income before provision for income taxes		14,991		15,146		11,178
Provision for income taxes		4,429		4,488		3,294
Net income	$	10,562	$	10,658	$	7,884
Net income available to common shareholders	$	10,482	$	10,573	$	7,832

Earnings per share
Basic earnings per share	$	1.83	$	1.85	$	1.38
Diluted earnings per share	$	1.80	$	1.82	$	1.36

Average shares outstanding		5,734,688		5,716,291		5,679,843
Diluted average shares outstanding		5,826,229		5,813,197		5,754,937

PRIVATE BANCORP OF AMERICA, INC. Consolidated average balance sheet, interest, yield and rates (Unaudited) (Dollars in thousands)

	For the three months ended
	Mar 31, 2025							Dec 31, 2024							Mar 31, 2024
	Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate
Interest-Earnings Assets
Deposits in other financial institutions	$	202,907	$	2,198		4.39	%	$	143,053	$	1,661		4.62	%	$	135,511	$	1,799		5.34	%
Investment securities		157,747		1,505		3.82	%		155,768		1,510		3.88	%		119,690		979		3.27	%
Loans, including LHFS		2,078,588		36,565		7.13	%		2,036,178		37,259		7.28	%		1,868,308		33,006		7.11	%
Total interest-earning assets		2,439,242		40,268		6.70	%		2,334,999		40,430		6.89	%		2,123,509		35,784		6.78	%
Noninterest-earning assets		28,536							24,951							25,469
Total Assets	$	2,467,778						$	2,359,950						$	2,148,978

Interest-Bearing Liabilities
Interest bearing DDA, excluding brokered		244,301		970		1.61	%		178,811		634		1.41	%		109,838		441		1.61	%
Savings & MMA, excluding brokered		955,259		6,830		2.90	%		904,191		6,991		3.08	%		765,770		6,421		3.37	%
Time deposits, excluding brokered		196,375		1,956		4.04	%		191,794		2,004		4.16	%		155,703		1,583		4.09	%
Total deposits, excluding brokered		1,395,935		9,756		2.83	%		1,274,796		9,629		3.00	%		1,031,311		8,445		3.29	%
Total brokered deposits		183,059		2,143		4.75	%		218,792		2,668		4.85	%		287,885		3,685		5.15	%
Total Interest-Bearing Deposits		1,578,994		11,899		3.06	%		1,493,588		12,297		3.28	%		1,319,196		12,130		3.70	%

FHLB advances		24,122		272		4.57	%		29,446		343		4.63	%		49,935		614		4.95	%
Other borrowings		17,981		365		8.23	%		17,967		383		8.48	%		17,962		272		6.09	%
Total Interest-Bearing Liabilities		1,621,097		12,536		3.14	%		1,541,001		13,023		3.36	%		1,387,093		13,016		3.77	%

Noninterest-bearing deposits		594,408							577,462							553,541
Total Funding Sources		2,215,505		12,536		2.29	%		2,118,463		13,023		2.45	%		1,940,634		13,016		2.70	%

Noninterest-bearing liabilities		21,542							21,524							18,018
Shareholders’ equity		230,731							219,963							190,326

Total Liabilities and Shareholders’ Equity	$	2,467,778						$	2,359,950						$	2,148,978

Net interest income/spread			$	27,732		4.41	%			$	27,407		4.44	%			$	22,768		4.08	%
Net interest margin						4.61	%						4.67	%						4.31	%

PRIVATE BANCORP OF AMERICA, INC. Condensed Balance Sheets (Unaudited) (Dollars in thousands, except per share amounts)

	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Assets
Cash and due from banks	$	218,481		$	163,876		$	207,174		$	158,377		$	141,501
Interest-bearing time deposits with other institutions		4,213			4,189			4,124			4,097			4,032
Investment securities		156,346			145,238			141,100			121,725			114,067
Loans held for sale		2,066			3,008			2,040			–			383
Total loans held-for-investment		2,078,653			2,085,149			2,012,457			1,979,720			1,906,992
Allowance for loan losses		(26,437	)		(27,267	)		(26,594	)		(26,591	)		(24,693	)
Loans held-for-investment, net of allowance		2,052,216			2,057,882			1,985,863			1,953,129			1,882,299
Operating lease right of use assets		6,383			6,819			4,344			4,719			2,765
Premises and equipment, net		2,432			2,335			2,345			2,207			1,804
Other assets and interest receivable		40,736			40,664			39,383			41,430			40,926
Total assets	$	2,482,873		$	2,424,011		$	2,386,373		$	2,285,684		$	2,187,777

Liabilities and Shareholders’ Equity
Liabilities
Noninterest Bearing	$	599,095		$	553,405		$	584,292		$	557,055		$	516,294
Interest Bearing		1,593,014			1,581,054			1,522,839			1,444,671			1,388,381
Total Deposits		2,192,109			2,134,459			2,107,131			2,001,726			1,904,675
Borrowings		33,970			45,969			45,967			65,965			70,963
Accrued interest payable and other liabilities		21,559			20,049			19,062			16,551			18,107
Total liabilities		2,247,638			2,200,477			2,172,160			2,084,242			1,993,745
Shareholders’ equity
Common stock		76,156			75,377			74,688			74,636			74,105
Additional paid-in capital		3,712			4,393			4,271			3,717			4,108
Retained earnings		162,462			152,252			141,623			132,179			124,464
Accumulated other comprehensive (loss) income		(7,095	)		(8,488	)		(6,369	)		(9,090	)		(8,645	)
Total shareholders’ equity		235,235			223,534			214,213			201,442			194,032
Total liabilities and shareholders’ equity	$	2,482,873		$	2,424,011		$	2,386,373		$	2,285,684		$	2,187,777

Book value per common share	$	40.63		$	38.76		$	37.21		$	35.03		$	33.94
Tangible book value per common share⁽¹⁾	$	40.29		$	38.40		$	36.87		$	34.65		$	33.55
Shares outstanding		5,789,306			5,766,810			5,756,207			5,751,143			5,717,519

(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.


PRIVATE BANCORP OF AMERICA, INC. Condensed Statements of Income (Unaudited) (Dollars in thousands, except per share amounts)

	For the three months ended
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Interest income	$	40,268	$	40,430	$	40,018	$	38,662	$	35,784
Interest expense		12,536		13,023		14,311		13,992		13,016
Net interest income		27,732		27,407		25,707		24,670		22,768
Provision for credit losses		299		17		304		2,136		233
Net interest income after provision for credit losses		27,433		27,390		25,403		22,534		22,535

Service charges on deposit accounts		557		558		504		430		388
Net gain on sale of loans		469		932		587		661		681
Other noninterest income		587		456		343		447		357
Total noninterest income		1,613		1,946		1,434		1,538		1,426

Compensation and employee benefits		9,748		9,539		9,422		8,836		8,861
Occupancy and equipment		844		847		818		822		770
Data processing		1,326		1,195		1,238		1,183		1,058
Professional services		508		573		252		424		488
Other expenses		1,629		2,036		1,695		1,697		1,606
Total noninterest expense		14,055		14,190		13,425		12,962		12,783

Income before provision for income taxes		14,991		15,146		13,412		11,110		11,178
Income taxes		4,429		4,488		3,959		3,283		3,294
Net income	$	10,562	$	10,658	$	9,453	$	7,827	$	7,884
Net income available to common shareholders	$	10,482	$	10,573	$	9,373	$	7,761	$	7,832

Earnings per share
Basic earnings per share	$	1.83	$	1.85	$	1.64	$	1.36	$	1.38
Diluted earnings per share	$	1.80	$	1.82	$	1.63	$	1.35	$	1.36

Average shares outstanding		5,734,688		5,716,291		5,707,723		5,702,938		5,679,843
Diluted average shares outstanding		5,826,229		5,813,197		5,767,401		5,762,616		5,754,937

	Performance Ratios
	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
ROAA		1.74	%		1.80	%		1.62	%		1.40	%		1.48	%
ROAE		18.56	%		19.28	%		18.00	%		15.81	%		16.66	%
ROATCE⁽¹⁾		18.74	%		19.46	%		18.18	%		15.99	%		16.86	%
Net interest margin		4.61	%		4.67	%		4.44	%		4.48	%		4.31	%
Net interest spread		4.41	%		4.44	%		4.20	%		4.24	%		4.08	%
Efficiency ratio⁽¹⁾		47.90	%		48.34	%		49.46	%		49.46	%		52.84	%
Noninterest expense / average assets		2.31	%		2.39	%		2.29	%		2.32	%		2.39	%

(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.

PRIVATE BANCORP OF AMERICA, INC. (Unaudited)

	Selected Quarterly Average Balances
	(Dollars in thousands)
	For the three months ended
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Total assets	$	2,467,778	$	2,359,950	$	2,328,399	$	2,241,860	$	2,148,978
Earning assets	$	2,439,242	$	2,334,999	$	2,303,537	$	2,216,185	$	2,123,509
Total loans, including loans held for sale	$	2,078,588	$	2,036,178	$	1,989,748	$	1,939,746	$	1,868,308
Total deposits	$	2,173,402	$	2,071,050	$	2,047,197	$	1,961,099	$	1,872,737
Total shareholders’ equity	$	230,731	$	219,963	$	208,889	$	199,088	$	190,326

	Loan Balances by Type
	(Dollars in thousands)
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Commercial Real Estate (CRE):
Investor owned	$	577,512	$	572,659	$	560,481	$	566,314	$	573,587
Owner occupied		228,232		223,442		221,364		216,876		216,123
Multifamily		163,218		162,330		175,387		177,390		175,629
Secured by single family		200,650		198,579		190,738		181,744		157,092
Land and construction		70,293		62,638		68,186		58,109		35,975
SBA secured by real estate		402,524		401,990		395,646		388,271		385,416
Total CRE		1,642,429		1,621,638		1,611,802		1,588,704		1,543,822
Commercial business:
Commercial and industrial		417,258		441,182		383,874		378,161		352,417
SBA non-real estate secured		17,004		20,205		15,101		10,758		8,657
Total commercial business		434,262		461,387		398,975		388,919		361,074
Consumer		1,962		2,124		1,680		2,097		2,096
Total loans held for investment	$	2,078,653	$	2,085,149	$	2,012,457	$	1,979,720	$	1,906,992

	Deposits by Type
	(Dollars in thousands)
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Noninterest-bearing DDA	$	599,095	$	553,405	$	584,292	$	557,055	$	516,294
Interest-bearing DDA, excluding brokered		257,720		251,594		182,268		156,253		117,129
Savings & MMA, excluding brokered		981,491		887,740		920,219		861,508		812,841
Time deposits, excluding brokered		210,845		201,851		186,583		168,664		160,605
Total deposits, excluding brokered		2,049,151		1,894,590		1,873,362		1,743,480		1,606,869
Total brokered deposits		142,958		239,869		233,769		258,246		297,806
Total deposits	$	2,192,109	$	2,134,459	$	2,107,131	$	2,001,726	$	1,904,675

PRIVATE BANCORP OF AMERICA, INC. (Unaudited)

	Rollforward of Allowance for Credit Losses
	(Dollars in thousands)
	For the three months ended
	Mar 31, 2025			Dec 31, 2024		Sep 30, 2024		Jun 30, 2024			Mar 31, 2024
Allowance for loan losses:
Beginning balance	$	27,267		$	26,594	$	26,591	$	24,693		$	24,476
Provision for loan losses		460			673		3		1,994			251
Net (charge-offs) recoveries		(1,290	)		–		–		(96	)		(34	)
Ending balance		26,437			27,267		26,594		26,591			24,693
Reserve for unfunded commitments		1,348			1,509		2,165		1,865			1,723
Total allowance for credit losses	$	27,785		$	28,776	$	28,759	$	28,456		$	26,416

	Asset Quality
	(Dollars in thousands)
	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Total loans held-for-investment	$	2,078,653		$	2,085,149		$	2,012,457		$	1,979,720		$	1,906,992
Allowance for loan losses	$	(26,437	)	$	(27,267	)	$	(26,594	)	$	(26,591	)	$	(24,693	)
30-89 day past due loans	$	2,399		$	1,952		$	–		$	–		$	–
90+ day past due loans	$	13,223		$	11,512		$	11,512		$	2,500		$	3,530
Nonaccrual loans	$	15,565		$	11,512		$	11,512		$	2,500		$	4,656
NPAs / Assets		0.63	%		0.47	%		0.48	%		0.11	%		0.21	%
NPLs / Total loans held-for-investment & OREO		0.75	%		0.55	%		0.57	%		0.13	%		0.24	%
Net quarterly charge-offs (recoveries)	$	1,290		$	–		$	–		$	96		$	34
Net charge-offs (recoveries) /avg loans (annualized)		0.25	%		0.00	%		0.00	%		0.02	%		0.01	%
Allowance for loan losses to loans HFI		1.27	%		1.31	%		1.32	%		1.34	%		1.29	%
Allowance for loan losses to nonaccrual loans		169.85	%		236.86	%		231.01	%		1,063.64	%		530.35	%

PRIVATE BANCORP OF AMERICA, INC.
(Unaudited)

The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity, and return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

	GAAP to Non-GAAP Reconciliation
	(Dollars in thousands)

	For the three months ended
	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Efficiency Ratio
Noninterest expense	$	14,055		$	14,190		$	13,425		$	12,962		$	12,783
Net interest income		27,732			27,407			25,707			24,670			22,768
Noninterest income		1,613			1,946			1,434			1,538			1,426
Total net interest income and noninterest income		29,345			29,353			27,141			26,208			24,194
Efficiency ratio (non-GAAP)		47.90	%		48.34	%		49.46	%		49.46	%		52.84	%

Pretax pre-provision net revenue
Net interest income	$	27,732		$	27,407		$	25,707		$	24,670		$	22,768
Noninterest income		1,613			1,946			1,434			1,538			1,426
Total net interest income and noninterest income		29,345			29,353			27,141			26,208			24,194
Less: Noninterest expense		14,055			14,190			13,425			12,962			12,783
Pretax pre-provision net revenue (non-GAAP)	$	15,290		$	15,163		$	13,716		$	13,246		$	11,411

Return and Adjusted Return on Average Assets, Average Equity, Average Tangible Equity
Net income	$	10,562		$	10,658		$	9,453		$	7,827		$	7,884
Average assets		2,467,778			2,359,950			2,328,399			2,241,860			2,148,978
Average shareholders’ equity		230,731			219,963			208,889			199,088			190,326
Less: Average intangible assets		2,098			2,028			2,051			2,163			2,208
Average tangible common equity (non-GAAP)		228,633			217,935			206,838			196,925			188,118

Return on average assets		1.74	%		1.80	%		1.62	%		1.40	%		1.48	%
Return on average equity		18.56	%		19.28	%		18.00	%		15.81	%		16.66	%
Return on average tangible common equity (non-GAAP)		18.74	%		19.46	%		18.18	%		15.99	%		16.86	%

Tangible book value per share
Total equity		235,235			223,534			214,213			201,442			194,032
Less: Total intangible assets		1,993			2,087			2,006			2,164			2,203
Total tangible equity		233,242			221,447			212,207			199,278			191,829
Shares outstanding		5,789,306			5,766,810			5,756,207			5,751,143			5,717,519
Tangible book value per share (non-GAAP)	$	40.29		$	38.40		$	36.87		$	34.65		$	33.55

The MIL Network –

April 22, 2025

MIL-OSI: Capital City Bank Group, Inc. Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

TALLAHASSEE, Fla., April 21, 2025 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $16.9 million, or $0.99 per diluted share, for the first quarter of 2025 compared to $13.1 million, or $0.77 per diluted share, for the fourth quarter of 2024, and $12.6 million, or $0.74 per diluted share, for the first quarter of 2024.

QUARTER HIGHLIGHTS (1^stQuarter 2025 versus 4^thQuarter 2024)

Income Statement

Tax-equivalent net interest income totaled $41.6 million compared to $41.2 million for the prior quarter
- Net interest margin increased five basis points to 4.22% (earning asset yield up one basis point and total deposit cost down four basis points to 82 basis points)
Improved credit quality metrics – net loan charge-offs were nine basis points (annualized) of average loans – allowance coverage ratio increased to 1.12% at March 31, 2025
Noninterest income increased $1.1 million, or 6.1%, and reflected a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees
Noninterest expense decreased $3.1 million, or 7.4%, primarily due to a $3.1 million decrease in other expense which included a higher level of gains from the sale of banking facilities, namely the sale of our operations center building in the first quarter

Balance Sheet

Loan balances decreased $11.5 million, or 0.4% (average), and increased $9.2 million, or 0.4% (end of period)
Deposit balances increased by $65.1 million, or 1.8% (average), and increased $111.9 million, or 3.0% (end of period), largely due to the seasonal increase in our public fund balances
Tangible book value per diluted share (non-GAAP financial measure) increased $0.94, or 4.0%

“I am pleased with our first quarter performance, which reflects strong core fundamentals and strategic execution driven by a 2.6% increase in revenues, solid growth in deposit balances, and improvement in credit quality metrics,” said William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO. “First quarter earnings also included a $0.17 per diluted share gain from the sale of our operations center building. Our strong balance sheet and revenue diversification provides us with the flexibility to navigate ongoing uncertainty in market and economic conditions.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the first quarter of 2025 totaled $41.6 million, compared to $41.2 million for the fourth quarter of 2024, and $38.4 million for the first quarter of 2024. Compared to both prior periods, the increase was driven by higher investment securities interest due to new investment purchases at higher yields, in addition to lower deposit interest expense, partially offset by lower loan interest due to lower average loan balances and interest rates. Two less calendar days also contributed to the decline in loan interest compared to the fourth quarter of 2024. Higher overnight funds interest also contributed to the increase over the first quarter of 2024 reflective of a higher level of average earning assets.

Our net interest margin for the first quarter of 2025 was 4.22%, an increase of five basis points over the fourth quarter of 2024 and an increase of 21 basis points over the first quarter of 2024. For the month of March 2025, our net interest margin was 4.22%. The increase in net interest margin over the fourth quarter of 2024 reflected a higher yield in the investment portfolio driven by new purchases during the quarter and a lower cost of deposits, partially offset by a lower overnight funds rate. The increase over the first quarter of 2024 reflected favorable investment repricing, a lower cost of deposits, and a higher overnight funds rate, partially offset by lower average loan balances for both prior periods. For the first quarter of 2025, our cost of funds was 84 basis points, a decrease of four basis points from the fourth quarter of 2024 and the first quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 82 basis points, 86 basis points, and 85 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $0.8 million for the first quarter of 2025 compared to $0.7 million for the fourth quarter of 2024 and $0.9 million for the first quarter of 2024. For the first quarter of 2025, we recorded a provision expense of $1.1 million for loans held for investment (“HFI”) and a provision benefit of $0.3 million for unfunded loan commitments, which was comparable to the fourth quarter of 2024. We discuss the various factors that impacted our provision expense in detail below under the heading Allowance for Credit Losses.

Noninterest Income and Noninterest Expense

Noninterest income for the first quarter of 2025 totaled $19.9 million compared to $18.8 million for the fourth quarter of 2024 and $18.1 million for the first quarter of 2024. The $1.1 million, or 6.1%, increase over the fourth quarter of 2024 was primarily due to a $0.7 million increase in mortgage banking revenues and a $0.5 million increase in wealth management fees, partially offset by a $0.1 million decrease in deposits fees. The increase in mortgage revenues was driven by an increase in rate locks and a higher gain on sale margin. The increase in wealth management fees was attributable to a $0.5 million increase in insurance commission revenue. Compared to the first quarter of 2024, the $1.8 million, or 10.0%, increase was driven by a $1.1 million increase in wealth management fees and a $0.9 million increase in mortgage banking revenues, partially offset by a $0.2 million decrease in deposit fees. The increase in wealth management fees reflected higher retail brokerage fees of $0.6 million, insurance commission revenue of $0.3 million, and trust fees of $0.2 million. The increase in mortgage revenues was driven by an increase in loan fundings and a higher gain on sale margin.

Noninterest expense for the first quarter of 2025 totaled $38.7 million compared to $41.8 million for the fourth quarter of 2024 and $40.2 million for the first quarter of 2024. The $3.1 million, or 7.4%, decrease from the fourth quarter of 2024, reflected a $3.1 million decrease in other expense, a $0.1 million decrease in occupancy expense, and a $0.1 million increase in compensation expense. The decrease in other expense was driven by a $3.5 million decrease in other real estate expense which reflected higher gains from the sale of banking facilities, primarily the sale of our operations center building in the first quarter of 2025, partially offset by a $0.5 million increase in charitable contribution expense. The slight decrease in occupancy expense was due to lower maintenance/repairs for buildings and furniture/fixtures. The slight net decrease in compensation expense reflected a $0.2 million increase in salary expense offset by a $0.1 million decrease in associate benefit expense.

Income Taxes

We realized income tax expense of $5.1 million (effective rate of 23.3%) for the first quarter of 2025 compared to $4.2 million (effective rate of 24.3%) for the fourth quarter of 2024 and $3.5 million (effective rate of 23.0%) for the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease in our effective tax rate was primarily due to a discrete item in the first quarter of 2025 related to an excess tax benefit for stock compensation. Absent discrete items, we expect our annual effective tax rate to approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.994 billion for the first quarter of 2025, an increase of $72.0 million, or 1.8%, over the fourth quarter of 2024, and an increase of $144.3 million, or 3.7%, over the first quarter of 2024. The increase over both prior periods was driven by higher deposit balances (see below – Deposits). Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $67.1 million increase in investment securities and a $22.7 million increase in overnight funds sold partially offset by a $11.5 million decrease in loans HFI and a $6.3 million decrease in loans held for sale (“HFS”). Compared to the first quarter of 2024, the change in the earning asset mix reflected a $180.5 million increase in overnight funds and a $29.1 million increase in investment securities that was partially offset by a $62.7 million decrease in loans HFI and a $2.6 million decrease in HFS.

Average loans HFI decreased $11.5 million, or 0.4%, from the fourth quarter of 2024 and decreased $62.7 million, or 2.3%, from the first quarter of 2024. Compared to the fourth quarter of 2024, the decrease was primarily attributable to declines in construction loans of $8.6 million, commercial loans of $5.7 million, and consumer loans of $2.1 million, partially offset by a $6.6 million increase in home equity loans. Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $58.8 million, commercial loans of $32.9 million, and commercial real estate mortgage loans of $23.1 million, partially offset by increases in residential real estate loans of $28.9 million, construction loans of $11.5 million, and home equity loans of $10.4 million.

Loans HFI at March 31, 2025 increased $9.2 million, or 0.3%, over December 31, 2024 and decreased $70.4 million, or 2.6%, from March 31, 2024. Compared to December 31, 2024, the increase was primarily attributable to increases in commercial real estate mortgage loans of $27.8 million and residential real estate loans of $12.1 million, consumer loans (primarily indirect auto) of $6.7 million, and home equity loans of $5.9 million, partially offset by decreases in construction loans of $27.7 million, commercial loans of $4.8 million, and other loans of $10.8 million. Compared to the first quarter of 2024, the decline was driven by decreases in consumer loans (primarily indirect auto) of $48.0 million, commercial loans of $33.9 million, commercial real estate mortgage loans of $16.7 million, and construction loans of $10.4 million, partially offset by increases in residential real estate loans of $27.8 million and home equity loans of $11.4 million.

Allowance for Credit Losses

At March 31, 2025, the allowance for credit losses for loans HFI totaled $29.7 million compared to $29.3 million at December 31, 2024 and $29.3 million at March 31, 2024. Activity within the allowance is provided on Page 9. The increase in the allowance over December 31, 2024 reflected higher loan balances and higher loan loss rates, partially offset by a lower level of net loan charge-offs. The increase in the allowance over March 31, 2024 was primarily due to higher loss rates. Net loan charge-offs were nine basis points of average loans for the first quarter of 2025 versus 25 basis points for the fourth quarter of 2024 and 22 basis points for the first quarter of 2024. At March 31, 2025, the allowance represented 1.12% of loans HFI compared to 1.10% at December 31, 2024, and 1.07% at March 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $4.4 million at March 31, 2025 compared to $6.7 million at December 31, 2024 and $6.8 million at March 31, 2024. At March 31, 2025, nonperforming assets as a percent of total assets was 0.10%, compared to 0.15% at December 31, 2024 and 0.16% at March 31, 2024. Nonaccrual loans totaled $4.3 million at March 31, 2025, a $2.0 million decrease from December 31, 2024 and a $2.5 million decrease from March 31, 2024. Further, classified loans totaled $19.2 million at March 31, 2025, a $0.7 million decrease from December 31, 2024 and a $3.1 million decrease from March 31, 2024.

Deposits

Average total deposits were $3.665 billion for the first quarter of 2025, an increase of $65.1 million, or 1.8%, over the fourth quarter of 2024 and an increase of $89.0 million, or 2.5%, over the first quarter of 2024. Compared to the fourth quarter of 2024, the increase was primarily attributable to higher NOW account balances largely due to the seasonal increase in our public fund balances. The increase over the first quarter of 2024 reflected growth in NOW, money market and certificate of deposit account balances which was mainly due to a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.

At March 31, 2025, total deposits were $3.784 billion, an increase of $111.9 million, or 3.0%, over December 31, 2024, and an increase of $129.1 million, or 3.5%, over March 31, 2024. The increase over December 31, 2024 was due to higher balances in all deposit categories. The increase over March 31, 2024 was primarily due to higher NOW account balances, largely due to the seasonal increase in public funds and increases in money market and certificates of deposit, partially offset by lower savings account balances. Total public funds balances were $648.0 million at March 31, 2025, $660.9 million at December 31, 2024, and $615.0 million at March 31, 2024.

Liquidity

The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $320.9 million in the first quarter of 2025 compared to $298.3 million in the fourth quarter of 2024 and $140.5 million in the first quarter of 2024. Compared to both prior periods, the increase reflected higher average deposits (primarily seasonal public funds) and lower average loans.

At March 31, 2025, we had the ability to generate approximately $1.540 billion (excludes overnight funds position of $446 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At March 31, 2025, the weighted-average maturity and duration of our portfolio were 2.64 years and 2.10 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.4 million.

Capital

Shareowners’ equity was $512.6 million at March 31, 2025 compared to $495.3 million at December 31, 2024 and $448.3 million at March 31, 2024. For the first three months of 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $16.9 million, a net $3.6 million decrease in the accumulated other comprehensive loss, the issuance of stock of $2.4 million, and stock compensation accretion of $0.4 million. The net favorable change in accumulated other comprehensive loss reflected a $4.1 million decrease in the investment securities loss that was partially offset by a $0.5 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by a common stock dividend of $4.1 million ($0.24 per share) and net adjustments totaling $1.9 million related to transactions under our stock compensation plans.

At March 31, 2025, our total risk-based capital ratio was 19.20% compared to 18.64% at December 31, 2024 and 16.84% at March 31, 2024. Our common equity tier 1 capital ratio was 16.08%, 15.54%, and 13.82%, respectively, on these dates. Our leverage ratio was 11.17%, 11.05%, and 10.45%, respectively, on these dates. At March 31, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 9.61% at March 31, 2025 compared to 9.51% and 8.53% at December 31, 2024 and March 31, 2024, respectively. If our unrealized held-to-maturity securities losses of $12.1 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.33%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.5 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 62 banking offices and 105 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes; the cost and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; government intervention in the U.S. financial system; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

For Information Contact:

Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

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

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Shareowners’ Equity (GAAP)		$	512,575	$	495,317	$	476,499	$	460,999	$	448,314
Less: Goodwill and Other Intangibles (GAAP)			92,733		92,773		92,813		92,853		92,893
Tangible Shareowners’ Equity (non-GAAP)	A		419,842		402,544		383,686		368,146		355,421
Total Assets (GAAP)			4,461,233		4,324,932		4,225,316		4,225,695		4,259,922
Less: Goodwill and Other Intangibles (GAAP)			92,733		92,773		92,813		92,853		92,893
Tangible Assets (non-GAAP)	B	$	4,368,500	$	4,232,159	$	4,132,503	$	4,132,842	$	4,167,029
Tangible Common Equity Ratio (non-GAAP)	A/B		9.61%		9.51%		9.28%		8.91%		8.53%
Actual Diluted Shares Outstanding (GAAP)	C		17,072,330		17,018,122		16,980,686		16,970,228		16,947,204
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	24.59	$	23.65	$	22.60	$	21.69	$	20.97

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

		Three Months Ended
(Dollars in thousands, except per share data)		Mar 31, 2025		Dec 31, 2024		Mar 31, 2024
EARNINGS
Net Income Attributable to Common Shareowners	$	16,858	$	13,090	$	12,557	$
Diluted Net Income Per Share	$	0.99	$	0.77	$	0.74	$
PERFORMANCE
Return on Average Assets (annualized)		1.58	%	1.22	%	1.21	%
Return on Average Equity (annualized)		13.32		10.60		11.07
Net Interest Margin		4.22		4.17		4.01
Noninterest Income as % of Operating Revenue		32.39		31.34		32.06
Efficiency Ratio		62.93	%	69.74	%	71.06	%
CAPITAL ADEQUACY
Tier 1 Capital		18.01	%	17.46	%	15.67	%
Total Capital		19.20		18.64		16.84
Leverage		11.17		11.05		10.45
Common Equity Tier 1		16.08		15.54		13.82
Tangible Common Equity ⁽¹⁾		9.61		9.51		8.53
Equity to Assets		11.49	%	11.45	%	10.52	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		692.10	%	464.14	%	431.46	%
Allowance as a % of Loans HFI		1.12		1.10		1.07
Net Charge-Offs as % of Average Loans HFI		0.09		0.25		0.22
Nonperforming Assets as % of Loans HFI and OREO		0.17		0.25		0.25
Nonperforming Assets as % of Total Assets		0.10	%	0.15	%	0.16	%
STOCK PERFORMANCE
High	$	38.27	$	40.86	$	31.34	$
Low		33.00		33.00		26.59
Close	$	35.96	$	36.65	$	27.70	$
Average Daily Trading Volume		24,486		27,484		31,023

⁽¹⁾ Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.

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

	2025				2024
(Dollars in thousands)	First Quarter				Fourth Quarter			Third Quarter			Second Quarter			First Quarter
ASSETS
Cash and Due From Banks	$	78,521		$	70,543		$	83,431		$	75,304		$	73,642
Funds Sold and Interest Bearing Deposits		446,042			321,311			261,779			272,675			231,047
Total Cash and Cash Equivalents		524,563			391,854			345,210			347,979			304,689

Investment Securities Available for Sale		461,224			403,345			336,187			310,941			327,338
Investment Securities Held to Maturity		517,176			567,155			561,480			582,984			603,386
Other Equity Securities		2,315			2,399			6,976			2,537			3,445
Total Investment Securities		980,715			972,899			904,643			896,462			934,169

Loans Held for Sale (“HFS”):		21,441			28,672			31,251			24,022			24,705

Loans Held for Investment (“HFI”):
Commercial, Financial, & Agricultural		184,393			189,208			194,625			204,990			218,298
Real Estate – Construction		192,282			219,994			218,899			200,754			202,692
Real Estate – Commercial		806,942			779,095			819,955			823,122			823,690
Real Estate – Residential		1,040,594			1,028,498			1,023,485			1,012,541			1,012,791
Real Estate – Home Equity		225,987			220,064			210,988			211,126			214,617
Consumer		206,191			199,479			213,305			234,212			254,168
Other Loans		3,227			14,006			461			2,286			3,789
Overdrafts		1,154			1,206			1,378			1,192			1,127
Total Loans Held for Investment		2,660,770			2,651,550			2,683,096			2,690,223			2,731,172
Allowance for Credit Losses		(29,734	)		(29,251	)		(29,836	)		(29,219	)		(29,329	)
Loans Held for Investment, Net		2,631,036			2,622,299			2,653,260			2,661,004			2,701,843

Premises and Equipment, Net		80,043			81,952			81,876			81,414			81,452
Goodwill and Other Intangibles		92,733			92,773			92,813			92,853			92,893
Other Real Estate Owned		132			367			650			650			1
Other Assets		130,570			134,116			115,613			121,311			120,170
Total Other Assets		303,478			309,208			290,952			296,228			294,516
Total Assets	$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695		$	4,259,922
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,363,739		$	1,306,254		$	1,330,715		$	1,343,606		$	1,361,939
NOW Accounts		1,292,654			1,285,281			1,174,585			1,177,180			1,212,452
Money Market Accounts		445,999			404,396			401,272			413,594			398,308
Savings Accounts		511,265			506,766			507,604			514,560			530,782
Certificates of Deposit		170,233			169,280			164,901			159,624			151,320
Total Deposits		3,783,890			3,671,977			3,579,077			3,608,564			3,654,801

Repurchase Agreements		22,799			26,240			29,339			22,463			23,477
Other Short-Term Borrowings		14,401			2,064			7,929			3,307			8,409
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		794			794			794			1,009			265
Other Liabilities		73,887			75,653			71,974			69,987			65,181
Total Liabilities		3,948,658			3,829,615			3,742,000			3,758,217			3,805,020

Temporary Equity		–			–			6,817			6,479			6,588
SHAREOWNERS’ EQUITY
Common Stock		171			170			169			169			169
Additional Paid-In Capital		38,576			37,684			36,070			35,547			34,861
Retained Earnings		476,715			463,949			454,342			445,959			435,364
Accumulated Other Comprehensive Loss, Net of Tax		(2,887	)		(6,486	)		(14,082	)		(20,676	)		(22,080	)
Total Shareowners’ Equity		512,575			495,317			476,499			460,999			448,314
Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695		$	4,259,922
OTHER BALANCE SHEET DATA
Earning Assets	$	4,108,969		$	3,974,431		$	3,880,769		$	3,883,382		$	3,921,093
Interest Bearing Liabilities		2,511,032			2,447,708			2,339,311			2,344,624			2,377,900
Book Value Per Diluted Share	$	30.02		$	29.11		$	28.06		$	27.17		$	26.45
Tangible Book Value Per Diluted Share⁽¹⁾		24.59			23.65			22.60			21.69			20.97
Actual Basic Shares Outstanding		17,055			16,975			16,944			16,942			16,929
Actual Diluted Shares Outstanding		17,072			17,018			16,981			16,970			16,947

⁽¹⁾ Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 5.

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

		2025		2024
(Dollars in thousands, except per share data)		First Quarter		Fourth Quarter			Third Quarter		Second Quarter		First Quarter
INTEREST INCOME
Loans, including Fees	$	40,478	$	41,453		$	41,659	$	41,138	$	40,683
Investment Securities		5,808		4,694			4,155		4,004		4,244
Federal Funds Sold and Interest Bearing Deposits		3,496		3,596			3,514		3,624		1,893
Total Interest Income		49,782		49,743			49,328		48,766		46,820
INTEREST EXPENSE
Deposits		7,383		7,766			8,223		8,579		7,594
Repurchase Agreements		164		199			221		217		201
Other Short-Term Borrowings		117		83			52		68		39
Subordinated Notes Payable		560		581			610		630		628
Other Long-Term Borrowings		11		11			11		3		3
Total Interest Expense		8,235		8,640			9,117		9,497		8,465
Net Interest Income		41,547		41,103			40,211		39,269		38,355
Provision for Credit Losses		768		701			1,206		1,204		920
Net Interest Income after Provision for Credit Losses		40,779		40,402			39,005		38,065		37,435
NONINTEREST INCOME
Deposit Fees		5,061		5,207			5,512		5,377		5,250
Bank Card Fees		3,514		3,697			3,624		3,766		3,620
Wealth Management Fees		5,763		5,222			4,770		4,439		4,682
Mortgage Banking Revenues		3,820		3,118			3,966		4,381		2,878
Other		1,749		1,516			1,641		1,643		1,667
Total Noninterest Income		19,907		18,760			19,513		19,606		18,097
NONINTEREST EXPENSE
Compensation		26,248		26,108			25,800		24,406		24,407
Occupancy, Net		6,793		6,893			7,098		6,997		6,994
Other		5,660		8,781			10,023		9,038		8,770
Total Noninterest Expense		38,701		41,782			42,921		40,441		40,171
OPERATING PROFIT		21,985		17,380			15,597		17,230		15,361
Income Tax Expense		5,127		4,219			2,980		3,189		3,536
Net Income		16,858		13,161			12,617		14,041		11,825
Pre-Tax (Income) Loss Attributable to Noncontrolling Interest		–		(71	)		501		109		732
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	16,858	$	13,090		$	13,118	$	14,150	$	12,557
PER COMMON SHARE
Basic Net Income	$	0.99	$	0.77		$	0.77	$	0.84	$	0.74
Diluted Net Income		0.99		0.77			0.77		0.83		0.74
Cash Dividend	$	0.24	$	0.23		$	0.23	$	0.21	$	0.21
AVERAGE SHARES
Basic		17,027		16,946			16,943		16,931		16,951
Diluted		17,044		16,990			16,979		16,960		16,969

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

		2025			2024
(Dollars in thousands, except per share data)		First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
ACL – HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,251		$	29,836		$	29,219		$	29,329		$	29,941
Transfer from Other (Assets) Liabilities		–			–			–			–			(50	)
Provision for Credit Losses		1,083			1,085			1,879			1,129			932
Net Charge-Offs (Recoveries)		600			1,670			1,262			1,239			1,494
Balance at End of Period	$	29,734		$	29,251		$	29,836		$	29,219		$	29,329
As a % of Loans HFI		1.12	%		1.10	%		1.11	%		1.09	%		1.07	%
As a % of Nonperforming Loans		692.10	%		464.14	%		452.64	%		529.79	%		431.46	%
ACL – UNFUNDED COMMITMENTS
Balance at Beginning of Period		2,155		$	2,522		$	3,139		$	3,121		$	3,191
Provision for Credit Losses		(323	)		(367	)		(617	)		18			(70	)
Balance at End of Period⁽¹⁾		1,832			2,155			2,522			3,139			3,121
ACL – DEBT SECURITIES
Provision for Credit Losses	$	8		$	(17	)	$	(56	)	$	57		$	58
CHARGE-OFFS
Commercial, Financial and Agricultural	$	168		$	499		$	331		$	400		$	282
Real Estate – Construction		–			47			–			–			–
Real Estate – Commercial		–			–			3			–			–
Real Estate – Residential		8			44			–			–			17
Real Estate – Home Equity		–			33			23			–			76
Consumer		865			1,307			1,315			1,061			1,550
Overdrafts		570			574			611			571			638
Total Charge-Offs	$	1,611		$	2,504		$	2,283		$	2,032		$	2,563
RECOVERIES
Commercial, Financial and Agricultural	$	75		$	103		$	176		$	59		$	41
Real Estate – Construction		–			3			–			–			–
Real Estate – Commercial		3			33			5			19			204
Real Estate – Residential		119			28			88			23			37
Real Estate – Home Equity		9			17			59			37			24
Consumer		481			352			405			313			410
Overdrafts		324			298			288			342			353
Total Recoveries	$	1,011		$	834		$	1,021		$	793		$	1,069
NET CHARGE-OFFS (RECOVERIES)	$	600		$	1,670		$	1,262		$	1,239		$	1,494
Net Charge-Offs as a % of Average Loans HFI⁽²⁾		0.09	%		0.25	%		0.19	%		0.18	%		0.22	%
CREDIT QUALITY
Nonaccruing Loans	$	4,296		$	6,302		$	6,592		$	5,515		$	6,798
Other Real Estate Owned		132			367			650			650			1
Total Nonperforming Assets (“NPAs”)	$	4,428		$	6,669		$	7,242		$	6,165		$	6,799

Past Due Loans 30-89 Days	$	3,735		$	4,311		$	9,388		$	5,672		$	5,392
Classified Loans		19,194			19,896			25,501			25,566			22,305

Nonperforming Loans as a % of Loans HFI		0.16	%		0.24	%		0.25	%		0.21	%		0.25	%
NPAs as a % of Loans HFI and Other Real Estate		0.17	%		0.25	%		0.27	%		0.23	%		0.25	%
NPAs as a % of Total Assets		0.10	%		0.15	%		0.17	%		0.15	%		0.16	%

⁽¹⁾Recorded in other liabilities
⁽²⁾Annualized

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

		First Quarter 2025							Fourth Quarter 2024							Third Quarter 2024							Second Quarter 2024							First Quarter 2024
(Dollars in thousands)		Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate
ASSETS:
Loans Held for Sale	$	24,726		$	490	8.04	%	$	31,047		$	976	7.89	%	$	24,570		$	720	7.49	%	$	26,281			517	5.26	%	$	27,314		$	563	5.99	%
Loans Held for Investment⁽¹⁾		2,665,910			40,029	6.09			2,677,396			40,521	6.07			2,693,533			40,985	6.09			2,726,748			40,683	6.03			2,728,629			40,196	5.95

Investment Securities
Taxable Investment Securities		981,485			5,802	2.38			914,353			4,688	2.04			907,610			4,148	1.82			918,989			3,998	1.74			952,328			4,238	1.78
Tax-Exempt Investment Securities⁽¹⁾		845			9	4.32			849			9	4.31			846			10	4.33			843			9	4.36			856			10	4.34

Total Investment Securities		982,330			5,811	2.38			915,202			4,697	2.04			908,456			4,158	1.82			919,832			4,007	1.74			953,184			4,248	1.78

Federal Funds Sold and Interest Bearing Deposits		320,948			3,496	4.42			298,255			3,596	4.80			256,855			3,514	5.44			262,419			3,624	5.56			140,488			1,893	5.42

Total Earning Assets		3,993,914		$	49,826	5.06	%		3,921,900		$	49,790	5.05	%		3,883,414		$	49,377	5.06	%		3,935,280		$	48,831	4.99	%		3,849,615		$	46,900	4.90	%

Cash and Due From Banks		73,467							73,992							70,994							74,803							75,763
Allowance for Credit Losses		(30,008	)						(30,107	)						(29,905	)						(29,564	)						(30,030	)
Other Assets		297,660							293,884							291,359							291,669							295,275

Total Assets	$	4,335,033						$	4,259,669						$	4,215,862						$	4,272,188						$	4,190,623

LIABILITIES:
Noninterest Bearing Deposits	$	1,317,425						$	1,323,556						$	1,332,305						$	1,346,546						$	1,344,188
NOW Accounts		1,249,955		$	3,854	1.25	%		1,182,073		$	3,826	1.29	%		1,145,544		$	4,087	1.42	%		1,207,643		$	4,425	1.47	%		1,201,032		$	4,497	1.51	%
Money Market Accounts		420,059			2,187	2.11			422,615			2,526	2.38			418,625			2,694	2.56			407,387			2,752	2.72			353,591			1,985	2.26
Savings Accounts		507,676			176	0.14			504,859			179	0.14			512,098			180	0.14			519,374			176	0.14			539,374			188	0.14
Time Deposits		170,367			1,166	2.78			167,321			1,235	2.94			163,462			1,262	3.07			160,078			1,226	3.08			138,328			924	2.69
Total Interest Bearing Deposits		2,348,057			7,383	1.28			2,276,868			7,766	1.36			2,239,729			8,223	1.46			2,294,482			8,579	1.50			2,232,325			7,594	1.37
Total Deposits		3,665,482			7,383	0.82			3,600,424			7,766	0.86			3,572,034			8,223	0.92			3,641,028			8,579	0.95			3,576,513			7,594	0.85
Repurchase Agreements		29,821			164	2.23			28,018			199	2.82			27,126			221	3.24			26,999			217	3.24			25,725			201	3.14
Other Short-Term Borrowings		7,437			117	6.39			6,510			83	5.06			2,673			52	7.63			6,592			68	4.16			3,758			39	4.16
Subordinated Notes Payable		52,887			560	4.23			52,887			581	4.30			52,887			610	4.52			52,887			630	4.71			52,887			628	4.70
Other Long-Term Borrowings		794			11	5.68			794			11	5.57			795			11	5.55			258			3	4.31			281			3	4.80
Total Interest Bearing Liabilities		2,438,996		$	8,235	1.37	%		2,365,077		$	8,640	1.45	%		2,323,210		$	9,117	1.56	%		2,381,218		$	9,497	1.60	%		2,314,976		$	8,465	1.47	%

Other Liabilities		65,211							73,130							73,767							72,634							68,295

Total Liabilities		3,821,632							3,761,763							3,729,282							3,800,398							3,727,459
Temporary Equity		–							6,763							6,443							6,493							7,150

SHAREOWNERS’ EQUITY:		513,401							491,143							480,137							465,297							456,014

Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,335,033						$	4,259,669						$	4,215,862						$	4,272,188						$	4,190,623

Interest Rate Spread				$	41,591	3.69	%				$	41,150	3.59	%				$	40,260	3.49	%				$	39,334	3.38	%				$	38,435	3.43	%

Interest Income and Rate Earned⁽¹⁾					49,826	5.06						49,790	5.05						49,377	5.06						48,831	4.99						46,900	4.90
Interest Expense and Rate Paid⁽²⁾					8,235	0.84						8,640	0.88						9,117	0.93						9,497	0.97						8,465	0.88

Net Interest Margin				$	41,591	4.22	%				$	41,150	4.17	%				$	40,260	4.12	%				$	39,334	4.02	%				$	38,435	4.01	%

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

The MIL Network –

April 21, 2025

MIL-OSI: HBT Financial, Inc. Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

First Quarter Highlights

Net income of $19.1 million, or $0.60 per diluted share; return on average assets (“ROAA”) of 1.54%; return on average stockholders’ equity (“ROAE”) of 13.95%; and return on average tangible common equity (“ROATCE”)⁽¹⁾ of 16.20%
Adjusted net income⁽¹⁾ of $19.3 million; or $0.61 per diluted share; adjusted ROAA⁽¹⁾ of 1.55%; adjusted ROAE⁽¹⁾ of 14.08%; and adjusted ROATCE⁽¹⁾ of 16.36%
Asset quality remained exceptional with nonperforming assets to total assets of 0.11% and net charge-offs to average loans of 0.05%, on an annualized basis
Net interest margin increased 16 basis points to 4.12% and net interest margin (tax-equivalent basis)⁽¹⁾increased 15 basis point to 4.16%

BLOOMINGTON, Ill., April 21, 2025 (GLOBE NEWSWIRE) — HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $19.1 million, or $0.60 diluted earnings per share, for the first quarter of 2025. This compares to net income of $20.3 million, or $0.64 diluted earnings per share, for the fourth quarter of 2024, and net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “We are off to a great start in 2025 with strong first quarter results. Despite the economic outlook recently becoming more uncertain, leading to interest rate volatility and stock market declines, we still believe that 2025 will be a solid year for HBT. Our credit discipline, strong profitability and solid balance sheet give us confidence that we are prepared for a variety of economic environments.

We continued to report solid profitability with adjusted net income⁽¹⁾ of $19.3 million, or $0.61 per diluted share, an adjusted ROAA⁽¹⁾ of 1.55% and an adjusted ROATCE⁽¹⁾ of 16.36%. Our net interest margin on a tax-equivalent basis⁽¹⁾ increased by 15 basis points, with 5 basis points of that increase related to higher nonaccrual interest recoveries and loan fees, as average loan balances were higher, loans and securities continued to reprice higher, and deposits repriced lower. Our strong profitability coupled with an improvement in our accumulated other comprehensive income due to lower interest rates, resulted in a $0.63 increase in our tangible book value per share⁽¹⁾ to $15.43. Tangible book value per share increased by 4.3% for the quarter and 17.0% over the last year.

Our balance sheet remains strong with all capital ratios increasing during the quarter and asset quality improving with nonperforming assets to total assets declining to only 0.11%. Loans at quarter-end were down only slightly while average loans for the quarter were up 2.2%. Deposits were up 1.5% at quarter-end and average deposits for the quarter were up 1.1%. Deposit growth was aided by moving most of our repurchase agreements into interest-bearing demand deposits. Our capital levels and operational structure support attractive acquisition opportunities should the right opportunity arise and markets stabilize.”
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Adjusted Net Income

In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, realized gains (losses) on sales of securities, mortgage servicing rights fair value adjustments, and the tax effect of these pre-tax adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $19.3 million, or $0.61 adjusted diluted earnings per share, for the first quarter of 2025. This compares to adjusted net income of $19.5 million, or $0.62 adjusted diluted earnings per share, for the fourth quarter of 2024, and adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2025 was $48.7 million, an increase of 2.8% from $47.4 million for the fourth quarter of 2024. The increase was primarily attributable to higher average loan balances, a decrease in deposit costs, and higher yields on loans and debt securities. Additionally, a $0.6 million increase in nonaccrual interest recoveries and loan fees contributed to the increase in net interest income.

Relative to the first quarter of 2024, net interest income increased 4.3% from $46.7 million. The increase was primarily attributable to higher average loan balances, a decrease in deposit costs, and higher yields on debt securities. Also contributing was a $0.7 million increase in nonaccrual interest recoveries and loan fees.

Net interest margin for the first quarter of 2025 was 4.12%, compared to 3.96% for the fourth quarter of 2024, and net interest margin (tax-equivalent basis)⁽¹⁾ for the first quarter of 2025 was 4.16%, compared to 4.01% for the fourth quarter of 2024. The increase was primarily attributable to higher yields on interest-earning assets, which increased 9 basis points to 5.34%, and lower funding costs, which decreased 7 basis points to 1.32%. Additionally, an increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 5 basis points of the increase in net interest margin.

Relative to the first quarter of 2024, net interest margin increased 18 basis points from 3.94% and net interest margin (tax-equivalent basis)⁽¹⁾ increased 17 basis points from 3.99%. These increases were primarily attributable to higher yields on interest-earning assets, a decrease in funding costs, and an increase in nonaccrual interest recoveries and loan fees. Additionally, an increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 6 basis points of the increase in net interest margin.
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Noninterest Income

Noninterest income for the first quarter of 2025 was $9.3 million, a 20.0% decrease from $11.6 million for the fourth quarter of 2024. The decrease was primarily attributable to changes in the mortgage servicing rights (“MSR”) fair value adjustment, with a $0.3 million negative MSR fair value adjustment included in the first quarter 2025 results compared to a $1.3 million positive MSR fair value adjustment included in the fourth quarter 2024 results. Further contributing to the decrease was a $0.3 million decrease in wealth management fees, primarily driven by a seasonal decrease in farm management income, a $0.3 million decrease in income on bank owned life insurance, primarily due to the absence of a $0.2 million gain on life insurance proceeds included in the fourth quarter 2024 results, and a $0.2 million decrease in card income. Partially offsetting these decreases was the absence of a $0.3 million realized loss on sale of debt securities included in the fourth quarter 2024 results.

Relative to the first quarter of 2024, noninterest income increased 65.4% from $5.6 million. The increase was primarily attributable to the absence of $3.4 million in realized losses on the sale of debt securities included in the first quarter 2024 results.

Noninterest Expense

Noninterest expense for the first quarter of 2025 was $31.9 million, a 3.3% increase from $30.9 million for the fourth quarter of 2024. The increase was primarily attributable to a $1.3 million increase in salaries expense, primarily driven by seasonal variations in vacation accruals and annual merit increases which took effect in early March, and a $0.6 million increase in employee benefits expense, primarily attributable to higher medical benefit costs. Partially offsetting these increases were a $0.3 million decrease in other noninterest expense and a $0.3 million decrease in data processing expense.

Relative to the first quarter of 2024, noninterest expense increased 2.1% from $31.3 million. The increase was primarily attributable to a $0.5 million increase in employee benefits expense, primarily driven by increased medical benefit costs, and a $0.4 million increase in salaries expense. Partially offsetting these increases was a $0.2 million decrease in data processing expense.

Income Taxes

During the first quarter of 2025 our effective tax rate decreased to 25.2% when compared to 26.0% during the fourth quarter of 2024. This decrease was primarily related to a $0.2 million tax benefit from stock-based compensation that vested during the quarter. Additionally, during the second quarter of 2025, we expect to recognize an additional $0.3 million of tax expense related to the reversal of a stranded tax effect included in accumulated other comprehensive income in connection with the maturity of a derivative designated as a cash flow hedge.

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.46 billion at March 31, 2025, compared with $3.47 billion at December 31, 2024, and $3.35 billion at March 31, 2024. Total loans as of March 31, 2025 were nearly unchanged when compared to December 31, 2024 with a $23.2 million increase in grain elevator lines of credit in the commercial and industrial segment, due to seasonally higher line utilization, partially offset by a $12.0 million reduction on two lines of credit that funded shortly before and paid off after December 31, 2024, as noted in the previous quarter’s earnings release. Larger payoffs in the one-to-four family residential, multi-family, and commercial real estate – non-owner occupied segments were partially offset by draws on existing loans in the construction and development segment and new originations in the municipal, consumer, and other segment. Additionally, average loan balances increased $73.4 million, or 2.2%, from the fourth quarter of 2024 to the first quarter of 2025.

Deposits

Total deposits were $4.38 billion at March 31, 2025, compared with $4.32 billion at December 31, 2024, and $4.36 billion at March 31, 2024. The $66.3 million increase from December 31, 2024 was primarily attributable to higher balances maintained in existing retail accounts. Additionally, the vast majority of repurchase agreement account balances at December 31, 2024 were transitioned to reciprocal interest-bearing demand deposit accounts during the first quarter of 2025.

Asset Quality

Nonperforming assets totaled $5.6 million, or 0.11% of total assets, at March 31, 2025, compared with $8.0 million, or 0.16% of total assets, at December 31, 2024, and $9.9 million, or 0.20% of total assets, at March 31, 2024. Additionally, of the $5.1 million of nonperforming loans held as of March 31, 2025, $1.4 million is either wholly or partially guaranteed by the U.S. government. The $2.5 million decrease in nonperforming assets from December 31, 2024 was primarily attributable to the pay-off of a $1.6 million nonaccrual commercial real estate – non-owner occupied credit.

The Company recorded a provision for credit losses of $0.6 million for the first quarter of 2025. The provision for credit losses primarily reflects a $0.8 million increase in required reserves resulting from changes in qualitative factors; a $0.1 million increase in required reserves driven by changes within the portfolio; and a $0.3 million decrease in specific reserves.

The Company had net charge-offs of $0.4 million, or 0.05% of average loans on an annualized basis, for the first quarter of 2025, compared to net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the fourth quarter of 2024, and net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024.

The Company’s allowance for credit losses was 1.22% of total loans and 825% of nonperforming loans at March 31, 2025, compared with 1.21% of total loans and 549% of nonperforming loans at December 31, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $3.2 million as of March 31, 2025, compared with $3.1 million as of December 31, 2024.

Capital

As of March 31, 2025, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

	March 31, 2025		For Capital Adequacy Purposes With Capital Conservation Buffer

Total capital to risk-weighted assets	16.85	%	10.50	%
Tier 1 capital to risk-weighted assets	14.77		8.50
Common equity tier 1 capital ratio	13.48		7.00
Tier 1 leverage ratio	11.64		4.00

The ratio of tangible common equity to tangible assets⁽¹⁾ increased to 9.73% as of March 31, 2025, from 9.42% as of December 31, 2024, and tangible book value per share⁽¹⁾ increased by $0.63 to $15.43 as of March 31, 2025, when compared to December 31, 2024.

During the first quarter of 2025, the Company did not repurchase shares of its common stock under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15.0 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2026. As of March 31, 2025, the Company had $15.0 million remaining under the stock repurchase program.
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

About HBT Financial, Inc.

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of March 31, 2025, HBT Financial had total assets of $5.1 billion, total loans of $3.5 billion, and total deposits of $4.4 billion.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include adjusted net income, adjusted earnings per share, adjusted ROAA, pre-provision net revenue, pre-provision net revenue less charge-offs (recoveries), adjusted pre-provision net revenue, adjusted pre-provision net revenue less charge-offs (recoveries), net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), adjusted efficiency ratio (tax-equivalent basis), the ratio of tangible common equity to tangible assets, tangible book value per share, adjusted ROAE, ROATCE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the “Reconciliation of Non-GAAP Financial Measures” tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (ii) effects on the U.S. economy resulting from the threat or implementation of, or changes to, existing policies and executive orders including tariffs, immigration policy, regulatory or other governmental agencies, foreign policy and tax regulations; (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new and revised accounting policies and practices, as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (v) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the bank failures in 2023; (vi) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vii) changes in interest rates and prepayment rates of the Company’s assets; (viii) increased competition in the financial services sector, including from non-bank competitors such as credit unions and fintech companies, and the inability to attract new customers; (ix) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (x) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (xi) the loss of key executives and employees, talent shortages and employee turnover; (xii) changes in consumer spending; (xiii) unexpected outcomes or costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xiv) the economic impact on the Company and its customers of climate change, natural disasters and of exceptional weather occurrences such as tornadoes, floods and blizzards; (xv) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xvi) credit risks and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio (including commercial real estate loans) and large loans to certain borrowers; (xvii) the overall health of the local and national real estate market; (xviii) the ability to maintain an adequate level of allowance for credit losses on loans; (xix) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xx) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xxi) the level of nonperforming assets on our balance sheet; (xxii) interruptions involving our information technology and communications systems or third-party servicers; (xxiii) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiv) the effectiveness of the Company’s risk management framework, and (xxv) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

CONTACT:
Peter Chapman
HBTIR@hbtbank.com
(309) 664-4556


HBT Financial, Inc. Unaudited Consolidated Financial Summary

	As of or for the Three Months Ended
(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			March 31, 2024
Interest and dividend income	$	63,138		$	62,798		$	61,961
Interest expense		14,430			15,397			15,273
Net interest income		48,708			47,401			46,688
Provision for credit losses		576			725			527
Net interest income after provision for credit losses		48,132			46,676			46,161
Noninterest income		9,306			11,630			5,626
Noninterest expense		31,935			30,908			31,268
Income before income tax expense		25,503			27,398			20,519
Income tax expense		6,428			7,126			5,261
Net income	$	19,075		$	20,272		$	15,258

Earnings per share – diluted	$	0.60		$	0.64		$	0.48

Adjusted net income ⁽¹⁾	$	19,253		$	19,546		$	18,073
Adjusted earnings per share – diluted ⁽¹⁾		0.61			0.62			0.57

Book value per share	$	17.86		$	17.26		$	15.71
Tangible book value per share ⁽¹⁾		15.43			14.80			13.19

Shares of common stock outstanding		31,631,431			31,559,366			31,612,888
Weighted average shares of common stock outstanding, including all dilutive potential shares		31,711,671			31,702,864			31,803,187

SUMMARY RATIOS
Net interest margin *		4.12	%		3.96	%		3.94	%
Net interest margin (tax-equivalent basis) * ⁽¹⁾⁽²⁾		4.16			4.01			3.99

Efficiency ratio		53.85	%		51.16	%		58.41	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾⁽²⁾		53.35			50.68			57.78

Loan to deposit ratio		78.95	%		80.27	%		76.73	%

Return on average assets *		1.54	%		1.61	%		1.23	%
Return on average stockholders’ equity *		13.95			14.89			12.42
Return on average tangible common equity * ⁽¹⁾		16.20			17.40			14.83

Adjusted return on average assets * ⁽¹⁾		1.55	%		1.56	%		1.45	%
Adjusted return on average stockholders’ equity * ⁽¹⁾		14.08			14.36			14.72
Adjusted return on average tangible common equity * ⁽¹⁾		16.36			16.77			17.57

CAPITAL
Total capital to risk-weighted assets		16.85	%		16.51	%		15.79	%
Tier 1 capital to risk-weighted assets		14.77			14.50			13.77
Common equity tier 1 capital ratio		13.48			13.21			12.44
Tier 1 leverage ratio		11.64			11.51			10.65
Total stockholders’ equity to total assets		11.10			10.82			9.85
Tangible common equity to tangible assets ⁽¹⁾		9.73			9.42			8.40

ASSET QUALITY
Net charge-offs (recoveries) to average loans *		0.05	%		0.08	%		(0.02)	%
Allowance for credit losses to loans, before allowance for credit losses		1.22			1.21			1.22
Nonperforming loans to loans, before allowance for credit losses		0.15			0.22			0.29
Nonperforming assets to total assets		0.11			0.16			0.20

____________________________________

* Annualized measure.

(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.


HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Statements of Income

	Three Months Ended
(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			March 31, 2024
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	53,369		$	52,587		$	51,926
Federally tax exempt		1,168			1,199			1,094
Debt securities:
Taxable		6,936			6,829			6,204
Federally tax exempt		469			482			597
Interest-bearing deposits in bank		1,065			1,520			1,952
Other interest and dividend income		131			181			188
Total interest and dividend income		63,138			62,798			61,961
INTEREST EXPENSE
Deposits		12,939			13,672			13,593
Securities sold under agreements to repurchase		22			179			152
Borrowings		109			115			125
Subordinated notes		470			470			470
Junior subordinated debentures issued to capital trusts		890			961			933
Total interest expense		14,430			15,397			15,273
Net interest income		48,708			47,401			46,688
PROVISION FOR CREDIT LOSSES		576			725			527
Net interest income after provision for credit losses		48,132			46,676			46,161
NONINTEREST INCOME
Card income		2,548			2,797			2,616
Wealth management fees		2,841			3,138			2,547
Service charges on deposit accounts		1,944			2,080			1,869
Mortgage servicing		990			1,158			1,055
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Gains on sale of mortgage loans		252			409			298
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Unrealized gains (losses) on equity securities		8			(83	)		(16	)
Gains (losses) on foreclosed assets		13			7			87
Gains (losses) on other assets		54			2			(635	)
Income on bank owned life insurance		164			415			164
Other noninterest income		800			691			943
Total noninterest income		9,306			11,630			5,626
NONINTEREST EXPENSE
Salaries		17,053			15,784			16,657
Employee benefits		3,285			2,649			2,805
Occupancy of bank premises		2,625			2,773			2,582
Furniture and equipment		445			460			550
Data processing		2,717			2,998			2,925
Marketing and customer relations		1,144			948			996
Amortization of intangible assets		695			709			710
FDIC insurance		562			557			560
Loan collection and servicing		383			653			452
Foreclosed assets		5			31			49
Other noninterest expense		3,021			3,346			2,982
Total noninterest expense		31,935			30,908			31,268
INCOME BEFORE INCOME TAX EXPENSE		25,503			27,398			20,519
INCOME TAX EXPENSE		6,428			7,126			5,261
NET INCOME	$	19,075		$	20,272		$	15,258

EARNINGS PER SHARE – BASIC	$	0.60		$	0.64		$	0.48
EARNINGS PER SHARE – DILUTED	$	0.60		$	0.64		$	0.48
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,584,989			31,559,366			31,662,954


HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Balance Sheets

(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024
ASSETS
Cash and due from banks	$	25,005		$	29,552		$	19,989
Interest-bearing deposits with banks		186,586			108,140			240,223
Cash and cash equivalents		211,591			137,692			260,212

Interest-bearing time deposits with banks		—			—			515
Debt securities available-for-sale, at fair value		706,135			698,049			669,020
Debt securities held-to-maturity		490,398			499,858			517,472
Equity securities with readily determinable fair value		3,323			3,315			3,324
Equity securities with no readily determinable fair value		2,629			2,629			2,622
Restricted stock, at cost		5,086			5,086			5,155
Loans held for sale		2,721			1,586			3,479

Loans, before allowance for credit losses		3,461,778			3,466,146			3,345,962
Allowance for credit losses		(42,111	)		(42,044	)		(40,815	)
Loans, net of allowance for credit losses		3,419,667			3,424,102			3,305,147

Bank owned life insurance		24,153			23,989			24,069
Bank premises and equipment, net		67,272			66,758			64,755
Bank premises held for sale		190			317			317
Foreclosed assets		460			367			277
Goodwill		59,820			59,820			59,820
Intangible assets, net		17,148			17,843			19,972
Mortgage servicing rights, at fair value		18,519			18,827			19,081
Investments in unconsolidated subsidiaries		1,614			1,614			1,614
Accrued interest receivable		22,735			24,770			23,117
Other assets		38,731			46,280			60,542
Total assets	$	5,092,192		$	5,032,902		$	5,040,510

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,065,874		$	1,046,405		$	1,047,074
Interest-bearing		3,318,716			3,271,849			3,313,500
Total deposits		4,384,590			4,318,254			4,360,574

Securities sold under agreements to repurchase		2,698			28,969			31,864
Federal Home Loan Bank advances		7,209			13,231			12,725
Subordinated notes		39,573			39,553			39,494
Junior subordinated debentures issued to capital trusts		52,864			52,849			52,804
Other liabilities		40,201			35,441			46,368
Total liabilities		4,527,135			4,488,297			4,543,829

Stockholders’ Equity
Common stock		329			328			328
Surplus		297,024			297,297			296,054
Retained earnings		329,169			316,764			278,353
Accumulated other comprehensive income (loss)		(38,446	)		(46,765	)		(56,048	)
Treasury stock at cost		(23,019	)		(23,019	)		(22,006	)
Total stockholders’ equity		565,057			544,605			496,681
Total liabilities and stockholders’ equity	$	5,092,192		$	5,032,902		$	5,040,510
SHARES OF COMMON STOCK OUTSTANDING		31,631,431			31,559,366			31,612,888


HBT Financial, Inc. Unaudited Consolidated Financial Summary

(dollars in thousands)	March 31, 2025		December 31, 2024		March 31, 2024

LOANS
Commercial and industrial	$	441,261	$	428,389	$	402,206
Commercial real estate – owner occupied		321,990		322,316		294,967
Commercial real estate – non-owner occupied		891,022		899,565		890,251
Construction and land development		376,046		374,657		345,991
Multi-family		424,096		431,524		421,573
One-to-four family residential		455,376		463,968		485,948
Agricultural and farmland		292,240		293,375		287,205
Municipal, consumer, and other		259,747		252,352		217,821
Total loans	$	3,461,778	$	3,466,146	$	3,345,962

(dollars in thousands)	March 31, 2025		December 31, 2024		March 31, 2024

DEPOSITS
Noninterest-bearing deposits	$	1,065,874	$	1,046,405	$	1,047,074
Interest-bearing deposits:
Interest-bearing demand		1,143,677		1,099,061		1,139,172
Money market		812,146		820,825		802,685
Savings		575,558		566,533		602,739
Time		787,335		785,430		713,142
Brokered		—		—		55,762
Total interest-bearing deposits		3,318,716		3,271,849		3,313,500
Total deposits	$	4,384,590	$	4,318,254	$	4,360,574


HBT Financial, Inc. Unaudited Consolidated Financial Summary

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
(dollars in thousands)	Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *

ASSETS
Loans	$	3,460,906		$	54,537	6.39	%	$	3,387,541		$	53,786	6.32	%	$	3,371,219		$	53,020	6.33	%
Debt securities		1,204,424			7,405	2.49			1,208,404			7,311	2.41			1,213,947			6,801	2.25
Deposits with banks		120,014			1,065	3.60			149,691			1,520	4.04			167,297			1,952	4.69
Other		12,677			131	4.19			12,698			181	5.68			12,986			188	5.82
Total interest-earning assets		4,798,021		$	63,138	5.34	%		4,758,334		$	62,798	5.25	%		4,765,449		$	61,961	5.23	%
Allowance for credit losses		(42,061	)						(40,942	)						(40,238	)
Noninterest-earning assets		276,853							277,074							278,253
Total assets	$	5,032,813						$	4,994,466						$	5,003,464

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,120,608		$	1,453	0.53	%	$	1,088,082		$	1,351	0.49	%	$	1,127,684		$	1,311	0.47	%
Money market		807,728			4,397	2.21			787,768			4,444	2.24			812,684			4,797	2.37
Savings		569,494			370	0.26			562,833			389	0.27			611,224			443	0.29
Time		784,099			6,719	3.48			796,494			7,439	3.72			664,498			5,925	3.59
Brokered		—			—	—			3,261			49	5.96			82,150			1,117	5.47
Total interest-bearing deposits		3,281,929			12,939	1.60			3,238,438			13,672	1.68			3,298,240			13,593	1.66
Securities sold under agreements to repurchase		8,754			22	1.02			31,624			179	2.26			32,456			152	1.89
Borrowings		12,890			109	3.41			13,370			115	3.42			13,003			125	3.87
Subordinated notes		39,563			470	4.82			39,543			470	4.73			39,484			470	4.78
Junior subordinated debentures issued to capital trusts		52,856			890	6.83			52,841			961	7.23			52,796			933	7.11
Total interest-bearing liabilities		3,395,992		$	14,430	1.72	%		3,375,816		$	15,397	1.81	%		3,435,979		$	15,273	1.79	%
Noninterest-bearing deposits		1,045,733							1,041,471							1,036,402
Noninterest-bearing liabilities		36,373							35,644							37,107
Total liabilities		4,478,098							4,452,931							4,509,488
Stockholders’ Equity		554,715							541,535							493,976
Total liabilities and stockholders’ equity	$	5,032,813						$	4,994,466						$	5,003,464

Net interest income/Net interest margin ⁽¹⁾				$	48,708	4.12	%				$	47,401	3.96	%				$	46,688	3.94	%
Tax-equivalent adjustment ⁽²⁾					545	0.04						562	0.05						575	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	49,253	4.16	%				$	47,963	4.01	%				$	47,263	3.99	%
Net interest rate spread ⁽⁴⁾						3.62	%						3.44	%						3.44	%
Net interest-earning assets ⁽⁵⁾	$	1,402,029						$	1,382,518						$	1,329,470
Ratio of interest-earning assets to interest-bearing liabilities		1.41							1.41							1.39
Cost of total deposits						1.21	%						1.27	%						1.26	%
Cost of funds						1.32							1.39							1.37

____________________________________

* Annualized measure.

(1)   Net interest margin represents net interest income divided by average total interest-earning assets.
(2)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(4)   Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)   Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.


HBT Financial, Inc. Unaudited Consolidated Financial Summary

(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

NONPERFORMING ASSETS
Nonaccrual	$	5,102		$	7,652		$	9,657
Past due 90 days or more, still accruing		4			4			—
Total nonperforming loans		5,106			7,656			9,657
Foreclosed assets		460			367			277
Total nonperforming assets	$	5,566		$	8,023		$	9,934

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	1,350		$	1,573		$	2,676

Allowance for credit losses	$	42,111		$	42,044		$	40,815
Loans, before allowance for credit losses		3,461,778			3,466,146			3,345,962

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.22	%		1.21	%		1.22	%
Allowance for credit losses to nonaccrual loans		825.38			549.45			422.65
Allowance for credit losses to nonperforming loans		824.74			549.16			422.65
Nonaccrual loans to loans, before allowance for credit losses		0.15			0.22			0.29
Nonperforming loans to loans, before allowance for credit losses		0.15			0.22			0.29
Nonperforming assets to total assets		0.11			0.16			0.20
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.16			0.23			0.30

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	42,044		$	40,966		$	40,048
Provision for credit losses		496			1,771			560
Charge-offs		(665	)		(1,086	)		(227	)
Recoveries		236			393			434
Ending balance	$	42,111		$	42,044		$	40,815

Net charge-offs (recoveries)	$	429		$	693		$	(207	)
Average loans		3,460,906			3,387,541			3,371,219

Net charge-offs (recoveries) to average loans *		0.05	%		0.08	%		(0.02)	%

____________________________________

* Annualized measure.

	Three Months Ended
(dollars in thousands)	March 31, 2025		December 31, 2024			March 31, 2024

PROVISION FOR CREDIT LOSSES
Loans	$	496	$	1,771		$	560
Unfunded lending-related commitments		80		(1,046	)		(33	)
Total provision for credit losses	$	576	$	725		$	527

Reconciliation of Non-GAAP Financial Measures –
Adjusted Net Income and Adjusted Return on Average Assets

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Net income	$	19,075		$	20,272		$	15,258
Less: adjustments
Gains (losses) on closed branch premises		59			—			(635	)
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Total adjustments		(249	)		1,016			(3,937	)
Tax effect of adjustments ⁽¹⁾		71			(290	)		1,122
Total adjustments after tax effect		(178	)		726			(2,815	)
Adjusted net income	$	19,253		$	19,546		$	18,073

Average assets	$	5,032,813		$	4,994,466		$	5,003,464

Return on average assets *		1.54	%		1.61	%		1.23	%
Adjusted return on average assets *		1.55			1.56			1.45

____________________________________

* Annualized measure.

(1) Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share — Basic and Diluted

	Three Months Ended
(dollars in thousands, except per share amounts)	March 31, 2025		December 31, 2024		March 31, 2024

Numerator:
Net income	$	19,075	$	20,272	$	15,258

Adjusted net income	$	19,253	$	19,546	$	18,073

Denominator:
Weighted average common shares outstanding		31,584,989		31,559,366		31,662,954
Dilutive effect of outstanding restricted stock units		126,682		143,498		140,233
Weighted average common shares outstanding, including all dilutive potential shares		31,711,671		31,702,864		31,803,187

Earnings per share – basic	$	0.60	$	0.64	$	0.48
Earnings per share – diluted	$	0.60	$	0.64	$	0.48

Adjusted earnings per share – basic	$	0.61	$	0.62	$	0.57
Adjusted earnings per share – diluted	$	0.61	$	0.62	$	0.57

Reconciliation of Non-GAAP Financial Measures –
Pre-Provision Net Revenue, Pre-Provision Net Revenue Less Net Charge-offs (Recoveries),
Adjusted Pre-Provision Net Revenue, and Adjusted Pre-Provision Net Revenue Less Net Charge-offs (Recoveries)

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Net interest income	$	48,708		$	47,401		$	46,688
Noninterest income		9,306			11,630			5,626
Noninterest expense		(31,935	)		(30,908	)		(31,268	)
Pre-provision net revenue		26,079			28,123			21,046
Less: adjustments
Gains (losses) on closed branch premises		59			—			(635	)
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Total adjustments		(249	)		1,016			(3,937	)
Adjusted pre-provision net revenue	$	26,328		$	27,107		$	24,983

Pre-provision net revenue	$	26,079		$	28,123		$	21,046
Less: net charge-offs (recoveries)		429			693			(207	)
Pre-provision net revenue less net charge-offs	$	25,650		$	27,430		$	21,253

Adjusted pre-provision net revenue	$	26,328		$	27,107		$	24,983
Less: net charge-offs (recoveries)		429			693			(207	)
Adjusted pre-provision net revenue less net charge-offs	$	25,899		$	26,414		$	25,190

Reconciliation of Non-GAAP Financial Measures –
Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Net interest income (tax-equivalent basis)
Net interest income	$	48,708		$	47,401		$	46,688
Tax-equivalent adjustment ⁽¹⁾		545			562			575
Net interest income (tax-equivalent basis) ⁽¹⁾	$	49,253		$	47,963		$	47,263

Net interest margin (tax-equivalent basis)
Net interest margin *		4.12	%		3.96	%		3.94	%
Tax-equivalent adjustment * ⁽¹⁾		0.04			0.05			0.05
Net interest margin (tax-equivalent basis) * ⁽¹⁾		4.16	%		4.01	%		3.99	%

Average interest-earning assets	$	4,798,021		$	4,758,334		$	4,765,449

____________________________________

* Annualized measure.

(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Efficiency Ratio (Tax-equivalent Basis) and Adjusted Efficiency Ratio (Tax-equivalent Basis)

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Total noninterest expense	$	31,935		$	30,908		$	31,268
Less: amortization of intangible assets		695			709			710
Noninterest expense excluding amortization of intangible assets	$	31,240		$	30,199		$	30,558

Net interest income	$	48,708		$	47,401		$	46,688
Total noninterest income		9,306			11,630			5,626
Operating revenue		58,014			59,031			52,314
Tax-equivalent adjustment ⁽¹⁾		545			562			575
Operating revenue (tax-equivalent basis) ⁽¹⁾		58,559			59,593			52,889
Less: adjustments to noninterest income
Gains (losses) on closed branch premises		59			—			(635	)
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Total adjustments to noninterest income		(249	)		1,016			(3,937	)
Adjusted operating revenue (tax-equivalent basis) ⁽¹⁾	$	58,808		$	58,577		$	56,826

Efficiency ratio		53.85	%		51.16	%		58.41	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾		53.35			50.68			57.78
Adjusted efficiency ratio (tax-equivalent basis) ⁽¹⁾		53.12			51.55			53.77

____________________________________
(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			March 31, 2024

Tangible Common Equity
Total stockholders’ equity	$	565,057		$	544,605		$	496,681
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		17,148			17,843			19,972
Tangible common equity	$	488,089		$	466,942		$	416,889

Tangible Assets
Total assets	$	5,092,192		$	5,032,902		$	5,040,510
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		17,148			17,843			19,972
Tangible assets	$	5,015,224		$	4,955,239		$	4,960,718

Total stockholders’ equity to total assets		11.10	%		10.82	%		9.85	%
Tangible common equity to tangible assets		9.73			9.42			8.40

Shares of common stock outstanding		31,631,431			31,559,366			31,612,888

Book value per share	$	17.86		$	17.26		$	15.71
Tangible book value per share		15.43			14.80			13.19

Reconciliation of Non-GAAP Financial Measures –
Return on Average Tangible Common Equity,
Adjusted Return on Average Stockholders’ Equity and Adjusted Return on Average Tangible Common Equity

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Average Tangible Common Equity
Total stockholders’ equity	$	554,715		$	541,535		$	493,976
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		17,480			18,170			20,334
Average tangible common equity	$	477,415		$	463,545		$	413,822

Net income	$	19,075		$	20,272		$	15,258
Adjusted net income		19,253			19,546			18,073

Return on average stockholders’ equity *		13.95	%		14.89	%		12.42	%
Return on average tangible common equity *		16.20			17.40			14.83

Adjusted return on average stockholders’ equity *		14.08	%		14.36	%		14.72	%
Adjusted return on average tangible common equity *		16.36			16.77			17.57

____________________________________

* Annualized measure.

The MIL Network –

April 21, 2025

MIL-OSI United Kingdom: £3 Million Pound Boost for Dundee Pensioners

Source: Scotland – City of Dundee

Over £3 million has been put into the pockets of Dundee pensioners, thanks to city-wide efforts encouraging people to apply for Pension Credit.

The council’s Council Advice Services Team has been running a campaign with Dundee Citizens Advice Bureau and Brooksbank to maximize the income of as many citizens of Dundee as possible over the state pension age.

Since the launch of this campaign, over £3,148,494 has been awarded to the citizens of Dundee through various benefits. With the average Pension Credit award being £68 per week, and an average backdated pension credit award of over £900.

The council continue to identify and contact households who might be entitled to Pension Credit and to reach as many people as possible.

Pension Credit is a payment for those whose income is less than the UK Government states someone over Pension age should receive.

Entitlement to Pension Credit depends on a person’s circumstances and looks at all the income in the household as well as savings over a certain amount. Whilst savings are considered, there is no upper threshold, so having savings does not necessarily mean there would be no entitlement.

Pension Credit also gives eligibility to free NHS dental treatment, NHS glasses, free TV License for over 75s, amongst other benefits. Anyone looking to get a benefits check should contact us on cas@dundeecity.gov.uk or our Older Peoples Take-up Campaign line on 01382 434474.

Dundee Council Leader, Mark Flynn said: “Getting over £3 million pounds back into the pockets of pensioners in the city is a fantastic achievement.

“We are aware of the rising cost of living and implications this has, particularly for pensioners. That’s why campaigns like this are so important and make a real difference to people’s lives.

“Our teams are here to help. It’s not only Pension Credit we’ve supported people to claim, but we have also helped people across the city get Attendance Allowance awards, Universal Credit and Council Tax Reduction.

“Every year billions of pounds of benefits go unclaimed. That’s why it’s so important we continue to run campaigns like this, reaching out directly to the community to help people claim the money they are entitled to.

“I want to thank the team who have carried out this work, it is clearly making a significant and positive difference to the lives of Dundee pensioners.

“I would encourage anyone who thinks they are eligible to come forward, the council and partners are here to help.”

MIL OSI United Kingdom –

April 21, 2025

MIL-OSI Asia-Pac: InvestHK visits India to promote Hong Kong’s business advantages and opportunities (with photo)

Source: Hong Kong Government special administrative region

â€‹Associate Director-General of Investment Promotion at Invest Hong Kong (InvestHK) Mr Charles Ng will commence his duty visit to Mumbai and New Delhi in India today (April 20), highlighting Hong Kong’s unrivalled role as a gateway for Indian companies to expand into Mainland China and across North Asia and Southeast Asia.

A highlight of the visit is the event Gateway to Growth: Exploring Business & Investment Opportunities in and via Hong Kong, jointly organised by InvestHK, the Hong Kong Economic and Trade Office in Singapore, and the Hong Kong Trade Development Council. As a keynote speaker, Mr Ng will update the participants on the latest developments in Hong Kong’s business landscape, as well as the strategic advantages of establishing operations in Hong Kong for Indian companies.

Mr Ng said, “As one of the fastest-growing economies in the world, India is not only a major start-up base but also is home to numerous high-net-worth individuals and wealthy families seeking diversified investment opportunities. Hong Kong is uniquely positioned to meet these needs. Our vibrant start-up ecosystem, boasting nearly 4 700 ventures in AI, healthtech, fintech, Web3 and other cutting-edge fields offers exceptional opportunities for Indian start-ups and investors alike. Moreover, our New Capital Investment Entrant Scheme offers an attractive pathway for Indian wealthy families looking to combine investment with the option of living in the city.”

Mr Ng’s visit includes high-level discussions with prominent Indian firms and investors focusing on establishing a presence in Hong Kong to capitalise on its strategic advantages for global growth. Hong Kong’s business-friendly environment, characterised by clear and transparent regulations, a simple and low tax regime, robust capital markets and free capital flows, positions the city as the ideal platform for Indian companies exploring expansion opportunities.

Mr Ng added, “With its unique position at the heart of Asia, world-class financial infrastructure, and deep connectivity with Mainland China and global markets, Hong Kong can empower Indian businesses to scale regionally and compete globally. This visit underscores InvestHK’s commitment to strengthening Hong Kong–India ties by fostering greater investment and innovation between the two places.”

The economic synergy between Hong Kong and India is profound. In 2024, India ranked as Hong Kong’s ninth-largest trading partner, with bilateral trade amounting to approximately US$26 billion. Hong Kong is home to a vibrant and long-standing Indian community of over 42 000 people. Bilateral ties have been further reinforced by the Comprehensive Avoidance of Double Taxation Agreement, signed in March 2018 and enhanced through a protocol in November 2018, which provides a robust framework for cross-border trade and investment.

MIL OSI Asia Pacific News –

April 20, 2025

MIL-OSI China: China’s general public budget spending up 4.2% in Q1

Source: China State Council Information Office

China’s general public budget spending rose 4.2 percent year on year to 7.2815 trillion yuan (about 1.01 trillion U.S. dollars) in the first quarter of the year, according to data released by the Ministry of Finance on Friday.

Notable growth was observed in spending on education, social security and employment, as well as energy-saving initiatives and environmental protection during the period.

Data showed that China’s general public budget revenue decreased by 1.1 percent year on year to 6.0189 trillion yuan in the first three months of the year.

Despite the decline, the country’s stamp tax revenue saw a substantial increase of 21.1 percent year on year, reaching 107.5 billion yuan. Revenue from stock trading stamp taxes surged by 60.6 percent from the previous year to 41.1 billion yuan, reflecting heightened enthusiasm in Chinese stock trading during the period.

MIL OSI China News –

April 19, 2025

MIL-OSI USA: Hoyer Statement on Tax Day

Source: United States House of Representatives – Congressman Steny H Hoyer (MD-05)

WASHINGTON, DC – Congressman Steny H. Hoyer (MD-05) released the following statement today on Tax Day to highlight the continued attacks on the Internal Revenue Service (IRS) by the Trump Administration:

“Today is the last day for most Americans to file their tax returns. The vast majority of them do so dutifully not only because the law requires it of them but also because they recognize it as an integral part of healthy civic life in our country.

“The Trump Administration and Republicans in Congress have made it harder for working Americans to file their taxes and easier for the wealthiest tax cheats to get out of paying their fair share. Today, the Internal Revenue Service is an agency in turmoil. By cutting IRS funding and purging staff at the height of tax season, Donald Trump, Elon Musk, and Office of Management and Budget Director Russell Vought have deleted the people throughout our nation who provide customer service to taxpayers, hear tax disputes, crack down on tax fraud, and ensure Americans get their tax refunds on time.

“Trump and Musk’s DOGE henchmen have also accessed taxpayers’ private data, including their Social Security numbers, addresses, financial history, and much more. Furthermore, they intend to breach longstanding legal firewalls, sharing rather than protecting sensitive taxpayer data. Every American who cares about their personal privacy ought to be outraged by these unprecedented breaches.

“Meanwhile, Republicans continue their assault on the IRS’s enforcement budget. Even though studies indicate $1 invested in examining tax returns for millionaires yields $12 in federal revenue, the agency has been desperately understaffed and underfunded for decades. Further cuts and fewer employees will only make it harder for the IRS to enforce our existing tax laws – especially among the wealthiest individuals and corporations who know how to cover their tracks.

“Hardworking American taxpayers shouldn’t have to bear additional costs just so the wealthy can get out of paying what they legally owe.”

MIL OSI USA News –

April 19, 2025

MIL-OSI Security: California Man Sentenced to 38 Months in Federal Prison for Conspiracy to Commit Money Laundering

Source: Office of United States Attorneys

DENVER – The U.S. Attorney’s Office for the District of Colorado announces Juan Demetrio Villalpando Dominguez, 65, of California, was sentenced to 38 months in federal prison after pleading guilty to one count of conspiracy to commit money laundering.

According to the plea agreement, the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) and U.S. Department of Homeland Security (DHS) conducted long-term, overlapping investigations of Villalpando Dominguez’s son, Juan Demetrio Villalpando, Jr. a/k/a “Junior,” and others. Two confidential sources made controlled purchases of narcotics in furtherance of the investigations. These controlled purchases were often negotiated with Mexico-based sources of supply and carried out by the suppliers’ associates in the Denver metropolitan area.

Drug proceeds collected from Juan Demetrio Villalpando Jr.’s customers by one confidential informant were aggregated and then sent in packages addressed to an uncharged person. The true recipient of the money, however, was Villalpando Dominguez. Villalpando Dominguez would then arrange for his son, Juan Demetrio Villalpando Jr., to receive the money in Mexico.

“Money laundering is a serious offense that enables drug traffickers to peddle their deadly wares,” said Acting U.S. Attorney J. Bishop Grewell. “We will hold offenders accountable.”

“Facilitating drug trafficking by funneling illegal proceeds back to Mexico perpetuates the scourge of the drug epidemic in our communities,” said Amanda Prestegard, IRS-CI Special Agent in Charge, Denver Field Office. “Removing these money launderers from the streets and putting them in prison is a result of the hard work of CI special agents, who proudly provide financial expertise as we work alongside our law enforcement partners to bring criminals to justice and keep our communities safe.”

“Dismantling cartels requires more than seizing drugs – it includes cutting off the flow of illicit money that fuels their operations. That’s why targeting the money laundering component of these networks is a key priority,” said FBI Denver Special Agent in Charge Mark Michalek. “With our partners at IRS-CI and ICE, the FBI continues to take a strategic, coordinated approach to bring these complex criminal enterprises to justice and safeguard all Americans from the devastating impact of illegal drugs.”

United States District Judge Charlotte N. Sweeney presided over the sentencing.

The FBI, IRS-CI, and DHS conducted the investigation in this case. The prosecution was handled by Assistant United States Attorneys Alexander Duncan and Michael Houlihan, as well as by former Assistant United States Attorney Cyrus Y. Chung.

This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Case No.: 23-cr-00106-CNS

MIL Security OSI –

April 19, 2025

MIL-OSI Security: Los Angeles Man Sentenced for Money Laundering

Source: Office of United States Attorneys

SACRAMENTO, Calif. — Daniel Hooker, 36, of Los Angeles, was sentenced today by U.S. District Judge Dena Coggins to 27 months in prison, for his role in a money laundering conspiracy, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, from August 2023 through March 2024, Hooker and three co‑conspirators conducted multiple financial transactions involving funds they believed to be proceeds of cocaine trafficking. Their belief as to the nature of the funds was based on representations of an individual working at the direction of law enforcement. On two different occasions in 2023 and 2024, Hooker met the individual in a parking lot in Rancho Cordova and accepted a total of $100,000 in cash to be laundered. After those meetings in Rancho Cordova, Hooker wired funds from a bank account he controlled into a bank account designated by the individual in an effort to complete the laundering. In total, the conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the conspirators laundered approximately $811,000.

This case was the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen and Whitnee Goins prosecuted the case.

MIL Security OSI –

April 19, 2025

MIL-OSI Security: KDY Crew Member Sentenced to 180 Months for Armed Carjacking and Marijuana Distribution

Source: Office of United States Attorneys

WASHINGTON – Jovan Terrell Williams, 20, of the District of Columbia, was sentenced today in U.S. District Court to 180-months in federal prison in connection with the November 2023 armed carjacking of a Chevrolet Corvette and for his participation in the Kennedy Street Crew drug trafficking conspiracy.

The sentencing was announced by U.S. Attorney Edward R. Martin, Jr., ATF Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms, and Explosives – Washington Field Division, Special Agent in Charge Ibrar A. Mian of the Drug Enforcement Administration (DEA) Washington Division, Special Agent in Charge Kareem Carter, of the Internal Revenue Service – Criminal Investigation Washington D.C. Field Office, and Chief Pamela Smith of the Metropolitan Police Department.

Williams, aka “Chewy,” pleaded guilty on September 5, 2024, to carjacking while armed and conspiracy to distribute more than 100 kilos of marijuana. In addition to the 180-month prison term, U.S. District Judge Beryl A. Howell ordered Williams to serve five years of supervised release.

Williams is the last of 17 KDY members to be sentenced in this case. Yesterday, on April 17, co-defendant and KDY leader Kenneth Ademola Olugbenga, 29, was sentenced to 160 months in prison.

According to court documents, Williams was a member of the Kennedy Street Crew, a violent drug trafficking organization which operated open-air drug markets on an 11-block stretch of Kennedy Street in Northwest, as well as surrounding streets. Like many drug trafficking organizations (DTOs), KDY armed itself with fire power to facilitate the drug trade, defend its territory from rival crews, and commit other violent crimes. Following a takedown operation in June 2023, most defendants charged by indictment for their roles in the KDY DTO were apprehended. Williams, however, remained a fugitive for months.

On November 17, 2023, at approximately 7:40 p.m., Williams—while still a fugitive—carjacked an individual at gunpoint on the 1800 block of Half Street, SW, stealing the victim’s 2021 Chevrolet Corvette. Williams was armed and wearing a ski mask when he and two associates ran from stolen Audi and Lexus sedans and advanced towards the owner of the Corvette, who knelt in surrender.

While pointing a gun at the car owner, Williams took the keys to the Corvette, a Tesla key attached to an Apple Air Tag, and Apple Air Pods. Williams and his associates then drove away in the stolen cars. Approximately 40 minutes later, the stolen Audi and Lexus were used in an armed robbery of three individuals on 8^th and P Streets NW.

Later that evening, at 9:53 p.m., law enforcement tracked the Apple Air Tag stolen from the carjacking victim to an apartment building on the 4700 block of Benning Road NE. Officers found and arrested Williams and two associates in the building’s laundry room. Following the arrests, officers recovered a “ghost gun” from inside a washing machine. In a hole in the laundry room’s ceiling, officers found three more concealed firearms: a black pistol, a black Glock 19 with an obliterated serial number, and another black pistol outfitted with a “switch” that would allow it to fire as a machine gun.

Earlier that year, on January 26, 2023, law enforcement executing a residential search warrant encountered Williams along with several other KDY crew members on the 1700 block of D Street, NE. Also in the residence, law enforcement recovered 10 firearms, assorted ammunition, 21 kilos of marijuana packed in suitcases, and 40 grams of fentanyl-laced pills. The firearms included a privately manufactured AR-style .223 caliber pistol (a ghost gun) modified to fire as a machine gun, and a Draco 7.62 x 39mm pistol. DNA profiles obtained from both firearms linked both weapons to Williams, who acknowledged that he possessed them in connection with the drug trafficking conspiracy.

This investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This case was investigated by ATF’s Washington Field Division, the Metropolitan Police Department, the DEA’s Washington Division, and the FBI Washington Field Office Violent Crimes Task Force, with assistance from the IRS-Criminal Investigation Washington, D.C. Office.

The matter is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey and Sitara Witanachchi of the of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.

KDY DEFENDANTS

NAME	AGE	SENTENCES
Kenneth Ademola Olugbenga	29	Sentenced March 17, 2025, to 160 Months in Prison after Pleading Guilty to Conspiracy to Distribute and Possess with the Intent to Distribute 500 Grams or more of Cocaine Base, and a Detectable Amount of Marijuana; and Possessing a Firearm in Furtherance of a Drug Trafficking Offense.
Khali Ahmed Brown, aka “Migo Lee”	24	Sentenced January 16, 2025, to 168 Months after Pleading Guilty to Conspiracy to Distribute 100 Kilograms or More of Marijuana and 400 Grams or More of Fentanyl and Oxycodone; Possession of a Firearm in Furtherance of a Drug Trafficking Offense; and Assault with a Dangerous Weapon.
Keion Michael Brown	21	Sentenced January 16, 2025, to 147 Months for Conspiracy to Distribute 100 Kilograms or More of Marijuana and Oxycodone and Possessing a Firearm in Furtherance of a Drug Trafficking Crime.
Miasiah Jamal Brown, aka “Michael Jamal Crawford”	23	Sentenced August 16, 2024, to Five Years for Possessing a Firearm in Furtherance of a Drug Trafficking Crime.
Tristan Miles Ware, aka “Greedy”	24	Sentenced December 13, 2024, to 120 Months for Conspiracy to Distribute 100 Kilos of Marijuana; and Possessing a Firearm During a Drug Trafficking Crime.
Jovan Williams, aka “Chewy” and “Choo”	20	Sentenced April 18, 2025 to 180 Months for Conspiracy to Distribute 100 Kilograms or More of Marijuana and Armed Carjacking.
Herman Eric-Bibmin Signou, aka “Herman Signour”	25	Sentenced March 22, 2024, to 40 Months for Conspiracy to Distribute and Possess with Intent to Distribute 100 Kilograms of More of Marijuana
Cameron Xavier Reid	28	Sentenced May 31, 2024, to 60 Months for Conspiracy to Distribute 100 Kilograms of More of Marijuana.
Warren Lawrence Fields, III, aka B-Dub	26	Sentenced May 16, 2024, to 60 Months for Possessing a Firearm During a Drug Trafficking Offense and for Conspiracy to Commit Money Laundering.
Juwan Demetrius Clark, aka “Squirrel”	28	Sentenced January 10, 2025, to 37 Months for Conspiracy to Commit Money Laundering.
Aaron DeAndre Mercer, aka “Curby,”	34	Sentenced September 13, 2024, to 120 Months for Conspiracy to Distribute 400 Grams or More of Fentanyl, Marijuana, and Cocaine Base.
David Penn, aka “Turtle”	32	Sentenced November 15, 2024, to 220 Months for Conspiracy to Distribute Marijuana, 40 Grams or More of Fentanyl, and a Mixture of Cocaine Base; and Two Counts of Possessing a Firearm in Furtherance of a Drug Trafficking Offense.
Ronald Lynn Dorsey, aka “Ron G” and “HBGeezy”	31	Sentenced September 13, 2024, to 30 Months for Conspiracy to Commit Money Laundering.
Antonio Reginald Bailey, aka “Boy Boy,” and “Fellow King”	24	Sentenced February 8, 2024, to 24 Months for Receiving a Firearm While Under Indictment.
Anthony Trayon Bailey, aka “Fat Ant,” and “Bizzle”	29	Sentenced April 26, 2024, to 15 Months for Conspiracy to Distribute 100 Kilograms or More of Marijuana, 400 Grams or More of Fentanyl, and a Mixture and Substance Containing a Detectable Amount of Cocaine Base.
Angel Enrique Suncar, aka “Coqui”	31	Sentenced December 12, 2024, to 60 Months for Possessing a Firearm During a Drug Trafficking Crime.
Adebayo Adediji Green	31	Sentenced August 16, 2024, to 60 Months for Possessing a Firearm in Furtherance of a Drug Trafficking Crime.

Defendant Cameron Reid is from Falmouth, VA; all remaining defendants are from Washington, D.C.

23cr202

MIL Security OSI –

April 19, 2025

Category: Taxation

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