Transport – Page 2129 – NewzIntel.com

MIL-OSI USA: Cassidy, Grassley, Heinrich Lead Reintroduction of Legislation to Combat Illegal Fentanyl

US Senate News:

Source: United States Senator for Louisiana Bill Cassidy
WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Chuck Grassley (R-IA), and Martin Heinrich (D-NM) led 11 colleagues in reintroducing the Halt Lethal Trafficking (HALT) Fentanyl Act. This legislation makes permanent the temporary classification of fentanyl-related substances as Schedule I of the Controlled Substances Act (CSA). Drug overdoses, largely driven by fentanyl, are the leading cause of death among young adults 18 to 45 years old. Synthetic opioids like fentanyl account for 66 percent of the total U.S. overdose deaths. The drug’s Schedule I classification is set to expire on March 31, 2025.
“The Biden administration’s open border was an invitation to drug cartels smuggling Chinese fentanyl into the U.S., fueling the U.S. overdose epidemic,” said Dr. Cassidy. “Law enforcement must have the tools necessary to combat this trend. We cannot let this Schedule I classification lapse.”
“Today, roughly 150 Americans will die from fentanyl poisoning. Cartels’ fuel this crisis by marketing their poison as legitimate prescription pills. They also avoid regulation by chemically altering the drugs to create powerful fentanyl knock-offs,” said Senator Grassley. “Congress closed that loophole by temporarily classifying fentanyl related substances under Schedule 1. The HALT Fentanyl Act would make permanent fentanyl related substances’ Schedule 1 classification and ensure law enforcement has the tools they need to combat these deadly drugs.”
“We’re losing more than 100,000 Americans each year to illicit fentanyl overdoses. I refuse to accept this reality, and that’s why I’m working to deliver tools law enforcement personnel need to keep deadly fentanyl off our streets and out of our communities,” said Senator Heinrich. “Permanently scheduling fentanyl and its analogues will help federal and local law enforcement crack down on illegal trafficking and allow prosecutors to build stronger, longer-term criminal cases. Our HALT Fentanyl Act will help stop the flow of these deadly drugs into our communities and save lives.”
Cassidy, Grassley, and Heinrich were joined by U.S. Senators Roger Marshall (R-KS), Todd Young (R-IN), Steve Daines (R-MT), Eric Schmitt (R-MO), Maggie Hassan (D-NH), Shelley Moore Capito (R-VW), Ruben Gallego (D-AZ), Catherine Cortez Masto (D-NV), Mike Rounds (R-SD), John Kennedy (R-LA), and Jeanne Shaheen (D-NH) in introducing the legislation.
The legislation also removes barriers that impede the ability of researchers to conduct studies on fentanyl-related substances and allows for exemptions if such research provides evidence that it would be beneficial for specific substances to be classified differently than Schedule I, such as for medical purposes.
From August 2021 to August 2022, a record-breaking 107,735 Americans lost their lives to drug overdoses. The surge was primarily fueled by synthetic opioids, including illegal fentanyl, which are largely manufactured in Mexico from raw materials supplied by China. In 2022, there were over 50.6 million fentanyl-laced fake prescription pills seized by the U.S. Drug Enforcement Administration (DEA), more than doubling the amount seized in 2021.
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Background
According to the U.S. Centers for Disease Control and Prevention (CDC), there were an estimated 107,543 drug overdose deaths in the U.S. in 2023. This was primarily fueled by synthetic opioids, including illegal fentanyl, which are largely manufactured in Mexico from raw materials supplied by China. In 2022, there were over 50.6 million fentanyl-laced fake prescription pills seized by the U.S. Drug Enforcement Administration (DEA), more than doubling the amount seized in 2021.
The U.S. House of Representatives passed the HALT Fentanyl Act in March 2023.

MIL OSI USA News –

January 31, 2025

MIL-OSI New Zealand: Govt Cuts – Workers sound alarm as Govt cuts impact services Kiwis rely on – PSA Survey

Source: PSA

The Government’s austerity measures are taking a toll on public servants’ wellbeing and their ability to deliver effective public services, a new PSA survey has found.

More than 4,000 workers in public services, health, the state sector, local government, and community services responded to the survey.

Key findings:

– Over half of respondents have too much work to do everything well

– More than 90% have been affected by restructuring

– More than 40% regularly work longer hours without pay

– 70% respond to work calls and messages outside of work hours

– Over half are worried about losing their job

Workers say the Government’s sweeping funding cuts are undermining their ability to do a good job. One health professional said it feels “like you are doing a disservice to people in our community as we cannot deliver the health care that they need with our waitlist and restricted service provision.”

A respondent at a community organisation that’s had its funding significantly cut by the Government said they now spend more time chasing funding and less time providing services to the community.

“It’s obvious now that the Government’s claim that ‘no front-line services will be affected’ is a lie,” said Duane Leo, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. “No amount of spin will stop the public from seeing that the Government is deliberately underfunding their public services and setting the table for private shareholders to enrich themselves from people’s needs.”

The survey also shows that, like most of the country, public sector, health and community workers are struggling with cost-of-living pressures. More than half are worried about becoming unemployed and not being able to find a job, as the Government signals cuts will continue.

Public sector, health and community workers need more certainty and better management support. They want fair treatment, better pay, career progression and to be valued. Most of all, they want the restructuring and disruption to stop, to allow them to get on with the work of delivering for their communities.

“Public, health, and community services – and the workers that provide them – are part of a future that works for everyone in Aotearoa,” said Leo. “To get that, they need certainty, resources, leadership, and a vision for effective, universal services. This survey shows the Government isn’t providing any of this. It’s part of a mountain of evidence that this Government wants a country for the wealthy few, rather than the many.”

About the survey

The PSA conducted the survey in December 2024 and got 4090 responses from members across the country, working in public services, health, the state sector, local government, and community public services.

Read the full report of the survey results attached.

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI Security: Hudson County Man Charged With Online Enticement Of A Minor

Source: Office of United States Attorneys

NEWARK, N.J. – A Hudson County man has been charged with enticing a minor to engage in criminal sexual conduct, Acting U.S. Attorney Vikas Khanna announced.

Ryan Niksa, 34, of Jersey City, New Jersey, was charged in a one-count complaint with enticement of a minor to engage in sexual activity. He had an initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on January 29, 2025, and was ordered detained.

According to documents filed in this case and statements made in court:

Since in or around August 2024, Niksa communicated with a minor victim located in another state through social media applications and text messages. Niksa and the minor victim exchanged sexually explicit photos and videos. Niksa expressed his desire to live with the minor victim, discussed traveling to the minor victim’s home state to be with her, and discussed running away with the minor victim to another country where they could evade law enforcement.

Enticement of a minor carries a mandatory minimum penalty of 10 years in prison and a maximum potential penalty of life in prison, as well as a $250,000 fine.

Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, the Jersey City Police Department, under the direction of Director James Shea, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Alison Thompson of the Organized Crime and Gangs Unit in Newark.

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

25-027 ###

Defense counsel: Shaiba Rather, Assistant Federal Public Defender

MIL Security OSI –

January 31, 2025

MIL-OSI Security: East St. Louis Woman Sentenced to Serve 10 Years in Prison for Transporting Controlled Substances to Pemiscot County

Source: Office of United States Attorneys

CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Thursday sentenced Georgia R. Phillips, 49, of East St. Louis, Illinois, to 120 months (10 years) in federal prison for the offense of possession with intent to distribute cocaine base.

Court records reflect that Phillips was pulled over for a traffic violation on Interstate 55 in Pemiscot County last May. During the stop, officers discovered large quantities of controlled substances in her vehicle, including approximately four ounces of crack cocaine. After being placed under arrest, Phillips admitted she was traveling from East St. Louis to deliver the controlled substances to an individual in Hayti, Missouri. The pair met in prison while serving a previous sentence for a drug-trafficking crime. At her guilty plea hearing last year, Phillips admitted that she intended to distribute the controlled substances. After serving her sentence, Phillips will be placed on a three-year term of supervised release.

This case was investigated by the Pemiscot County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jack Koester handled the prosecution for the Government.

MIL Security OSI –

January 31, 2025

MIL-OSI Security: St. Louis County Felon Admits Gun Charge

Source: Office of United States Attorneys

ST. LOUIS – A convicted felon caught video calling a jail inmate while displaying firearms pleaded guilty to a gun charge Thursday.

In June of 2024, Bruce Donta Robinson, 28, contacted an inmate at a detention facility in Pulaski County, Illinois via video call. During the call, Robinson can be seen with what appeared to be two semi-automatic weapons. Robinson is a convicted felon and is thus barred from possessing firearms. He was also on supervised release from a prior gun crime at the time.

After reviewing the video call, the FBI obtained a court-approved search warrant for Robinson’s St. Louis County residence. Agents found a loaded Polymer 80 semi-automatic pistol with no serial number and a large capacity magazine, a loaded Glock .45-caliber semi-automatic pistol with a laser attachment and a stolen Rock River Arms AR-15 pistol with a large capacity magazine.

Robinson pleaded guilty to one felony count of being a felon in possession of a firearm.
The charge carries a potential penalty of up to 15 years in prison.

The FBI investigated the case. Assistant U.S. Attorney J. Christian Goeke is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

MIL Security OSI –

January 31, 2025

MIL-OSI Security: Illegal Alien from Costa Rica Sentenced for Firearm Possession

Source: Office of United States Attorneys

NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that MILTON RAYO CASTILLO (“RAYO CASTILLO”), age 26, a native of Costa Rica, was sentenced on January 28. 2025 by United States District Judge Wendy Vitter, for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A). RAYO CATILLO was sentenced to fifty-two (52) months incarceration, supervised release for three (3) years, and payment of a $100 mandatory special assessment fee.

According to the indictment, on or about March 10, 2024, RAYO CASTILLO, an alien illegally present in the United States, was found in possession of a nine-millimeter semi-automatic pistol, after brandishing the weapon at a patron at a Kenner, Louisiana restaurant.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Kenner Police Department in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.

MIL Security OSI –

January 31, 2025

MIL-OSI Security: Lawton Couple Charged with Child Sex Trafficking

Source: Office of United States Attorneys

OKLAHOMA CITY – A federal Grand Jury has charged JACKIE ANTONIO DUNCAN, 35, and NIA HALL, 30, both of Lawton, with sex trafficking of children, sex trafficking by force, fraud, or coercion, and conspiracy to commit sex trafficking, announced U.S. Attorney Robert J. Troester.

According to public record, in May 2024, two juveniles ran away from a juvenile group home in Lawton, Oklahoma, and were entered into law enforcement databases as missing juveniles. One of the juveniles was located by officers with the Plano Police Department on July 16, 2024, at a motel in Collin County, Texas, where she disclosed she and the other missing juvenile had been sex-trafficked. The juvenile told officers that after she and the other juvenile had fled the group home, they were approached by two people, later identified as Hall and Duncan, at a gas station. The juveniles began living with Hall and Duncan, who soon after transported the juveniles to various cities in Texas, where they performed sex acts for money, which Hall and Duncan kept. In return, the juveniles were provided food and shelter. The juvenile told authorities she had recently escaped Hall and Duncan’s car in the Dallas area. On September 30, 2024, the second juvenile was found and recovered in San Antonio, Texas. She recounted a similar story of being sex-trafficked by Hall and Duncan in exchange for food and shelter. During the investigation, local and federal law enforcement reviewed sex advertisements associated with Hall. These advertisements contained photos of the juveniles.

Public record further reflects that Hall and Duncan were arrested on December 16, 2024. On January 21, 2025, a federal Grand Jury returned a three-count Indictment against Duncan and Hall, charging them with sex trafficking of children; sex trafficking by force, fraud, or coercion; and conspiracy to commit sex trafficking. If found guilty, Hall and Duncan face up to life in federal prison and fines of up to $250,000 on each count.

The public is reminded these charges are merely allegations, and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case is the result of an investigation by the Bureau of Indian Affairs, FBI Oklahoma City Field Office, Lawton Police Department, Choctaw Nation Lighthorse Police Department, Oklahoma Highway Patrol, Oklahoma Bureau of Narcotics & Dangerous Drugs Control, Fort Smith Police Department, Arkansas State Police, San Antonio Police Department, Plano Police Department, and Fort Worth Police Department. Assistant U.S. Attorneys Jordan Ganz and Brandon Hale are prosecuting the case.

Reference is made to public filings for additional information.

MIL Security OSI –

January 31, 2025

MIL-OSI Security: Estill County Man Sentenced for Distributing Oxycodone Pills

Source: Office of United States Attorneys

LONDON, Ky. – An Irvine, Ky., man, Chad Newman, 40, was sentenced to 87 months in prison, by U.S. District Judge Robert E. Wier, for conspiracy to distribute oxycodone.

According to his plea agreement, from January 1, 2019, until April 11, 2023, Newman conspired with others to distribute oxycodone pills in Madison, Estill, Laurel, Clay, and Knox Counties. During this time frame, Newman obtained oxycodone 30 mg pills from a source of supply in Louisville, which he would then sell to mid-and lower-level drug traffickers and drug users throughout Southeast Kentucky.

Under federal law, Newman must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge of the DEA Louisville Field Division; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Sheriff Chris Flynn, Estill Count Sheriff’s Office, jointly announced the sentence.

The investigation was conducted by DEA, KSP, Madison County Drug Task Force, and Estill County Sheriff’s Office. Assistant U.S. Attorney Sam Dotson prosecuted the case on behalf of the United States.

— END —

MIL Security OSI –

January 31, 2025

MIL-OSI: Waldencast plc Announces Upcoming Earnings Release and Conference Call Dates

Source: GlobeNewswire (MIL-OSI)

LONDON, Jan. 30, 2025 (GLOBE NEWSWIRE) — Waldencast plc, (NASDAQ: WALD) (“Waldencast”), a global multi-brand beauty and wellness platform, announced upcoming earnings release, conference call and webcast information for the fourth quarter and full fiscal year 2024 and first, second, and third quarters of fiscal year 2025. The webcasts will be available on the Investor Relations page on the company’s website at https://ir.waldencast.com/ approximately 2 weeks prior to the events.

For the fourth quarter and full fiscal year 2024, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, March 18^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, March 19^th, 2025 at 8:30am ET.

For the first quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, May 13^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, May 14^th, 2025 at 8:30am ET.

For the second quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Monday, August 18^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Tuesday, August 19^th, 2025 at 8:30am ET.

For the third quarter of fiscal 2025, the Company plans to issue a press release detailing its financial performance after the U.S. stock market closes on Tuesday, November 11^th, 2025. The Company’s management team will conduct a conference call and webcast including a slide presentation to discuss its results, strategy and outlook on Wednesday, November 12^th, 2025 at 8:30am ET.

About Waldencast

Founded by Michel Brousset and Hind Sebti, Waldencast’s ambition is to build a global best-in-class beauty and wellness operating platform by developing, acquiring, accelerating, and scaling conscious, high-growth purpose-driven brands. Waldencast’s vision is fundamentally underpinned by its brand-led business model that ensures proximity to its customers, business agility, and market responsiveness, while maintaining each brand’s distinct DNA. The first step in realizing its vision was the business combination with Obagi Skincare and Milk Makeup. As part of the Waldencast platform, its brands will benefit from the operational scale of a multi-brand platform; the expertise in managing global beauty brands at scale; a balanced portfolio to mitigate category fluctuations; asset light efficiency; and the market responsiveness and speed of entrepreneurial indie brands. For more information please visit: https://ir.waldencast.com/.

Contacts

Investors
ICR
Allison Malkin
investors@waldencast.com

Media
ICR
Brittney Fraser/Alecia Pulman
waldencast@icrinc.com

The MIL Network –

January 31, 2025

MIL-OSI: Cipher Mining Announces $50 Million PIPE Investment from SoftBank Group

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Jan. 30, 2025 (GLOBE NEWSWIRE) — Cipher Mining Inc. (NASDAQ:CIFR) (“Cipher” or the “Company”) today announced a $50 million investment from SoftBank Group Corp. (TSE: 9984, “SoftBank”), one of the world’s most prominent investment holding companies. The $50 million PIPE investment will support Cipher’s HPC data center development business and establish SoftBank as a significant primary investor in Cipher.

“We are thrilled to welcome SoftBank as an important investor in Cipher. This investment comes at a pivotal moment in Cipher’s growth trajectory, as the Company continues to attract attention for its pipeline of sites and innovative solutions in industrial-scale data centers. SoftBank’s focus on innovation in technology and AI development aligns with our vision to establish ourselves as a leader in HPC data center development,” said Tyler Page, Cipher’s CEO.

Keefe, Bruyette, & Woods Inc. acted as financial advisor to the Company, and Latham & Watkins LLP acted as legal counsel to the Company.

About Cipher

Cipher is focused on the development and operation of industrial-scale data centers for bitcoin mining and HPC hosting. Cipher aims to be a market leader in innovation, including in bitcoin mining growth, data center construction, and as a hosting partner to the world’s largest HPC companies. To learn more about Cipher, please visit https://www.ciphermining.com/.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws of the United States. Cipher intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release that are not statements of historical fact, such as, statements about Cipher’s beliefs and expectations regarding its planned business model and strategy, its HPC data center development and management plans and objectives, are forward-looking statements and should be evaluated as such. These forward-looking statements generally are identified by the words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “strategy,” “future,” “forecasts,” “opportunity,” “predicts,” “potential,” “would,” “will likely result,” “continue,” and similar expressions (including the negative versions of such words or expressions).

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Cipher and its management, are inherently uncertain. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: volatility in the price of Cipher’s securities due to a variety of factors, including changes in the competitive and regulated industry in which Cipher operates, Cipher’s evolving business model and strategy and efforts we may make to modify aspects of its business model or engage in various strategic initiatives, variations in performance across competitors, changes in laws and regulations affecting Cipher’s business, and the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Cipher’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission (“SEC”), as any such factors may be updated from time to time in Cipher’s other filings with the SEC, including without limitation, Cipher’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Cipher assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts:
Investor Contact:
Courtney Knight
Head of Investor Relations at Cipher Mining
courtney.knight@ciphermining.com

Media Contact:
Ryan Dicovitsky / Kendal Till
Dukas Linden Public Relations
CipherMining@DLPR.com

The MIL Network –

January 31, 2025

MIL-OSI: LPL Financial Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024

Key Financial Results:

Net Income was $271 million, translating to diluted earnings per share (“EPS”) of $3.59, up 26% from a year ago
Adjusted EPS* increased 21% year-over-year to $4.25
- Gross profit* increased 22% year-over-year to $1,228 million
- Core G&A* increased 16% year-over-year to $422 million
- Adjusted EBITDA* increased 22% year-over-year to $585 million

Key Business Results:

Total advisory and brokerage assets increased 29% year-over-year to $1.7 trillion
- Advisory assets increased 30% year-over-year to $957 billion
- Advisory assets as a percentage of total assets increased to 55.0%, up from 54.3% a year ago
Total organic net new assets were $68 billion, representing 17% annualized growth
- This included $40 billion of assets from Prudential Advisors (“Prudential”), and $2 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $30 billion, translating to an 8% annualized growth rate
Recruited assets⁽¹⁾were a record of $79 billion
- This included $63 billion of assets from Prudential
Advisor count⁽²⁾was 28,888, up 5,202 sequentially and 6,228 year-over-year
- This included approximately 2,200 advisors from Atria Wealth Solutions, Inc. (“Atria”), and approximately 2,800 advisors from Prudential
Total client cash balances were $55 billion, an increase of $9 billion sequentially and $7 billion year-over-year
- Client cash balances as a percentage of total assets were 3.2%, up from 2.9% in the prior quarter and down from 3.6% a year ago

Key Capital and Liquidity Results:

Corporate cash⁽³⁾was $479 million
Leverage ratio⁽⁴⁾was 1.89x
Share repurchases were $100 million and dividends paid were $23 million

Full Year 2024

Key Financial Results:

Net Income was $1.1 billion, translating to diluted EPS of $14.03, up 2% from a year ago
Adjusted EPS* increased 5% year-over-year to $16.51
- Gross profit* increased 12% year-over-year to $4.50 billion
- Core G&A* increased 11% year-over-year to $1.52 billion
- Adjusted EBITDA* increased 7% year-over-year to $2.22 billion

Key Business & Capital and Liquidity Results:

Total organic net new assets were $141 billion, representing a 10% growth rate, up from 9% in 2023
Recruited assets for the year were a record of $149 billion, up approximately 86% from a year ago
Share repurchases were $170 million and dividends paid were $90 million

Key Updates

Large Institutions:

Prudential: Onboarded the retail wealth management business of Prudential, with $63 billion of total assets, of which $40 billion transitioned onto our platform in Q4
Wintrust Financial Corporation: In January 2025, onboarded the wealth management business of Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”), with $16 billion of brokerage and advisory assets, of which $15 billion transitioned onto our platform to-date

M&A:

Atria: Closed the acquisition of Atria, and expect to complete the conversion in mid-2025
The Investment Center, Inc. (“The Investment Center”): On track to close and convert the acquisition of The Investment Center in the first half of 2025
Liquidity & Succession: Deployed approximately $81 million of capital to close 8 deals in Q4, including two external practices

Corporate Debt:

Completed leverage-neutral refinancing of existing $1.0 billion Senior Secured Term Loan B with a new $1.0 billion Senior Unsecured Term Loan A

Core G&A:

2024 Core G&A* was $1,515 million, within our outlook range of $1,510 million to $1,525 million
- Prior to the impact of Prudential and Atria, 2024 Core G&A* increased by approximately 8%
In 2025, we plan to slow the growth of Core G&A*, as our ongoing investments to scale our business are driving greater efficiencies
- Our 2025 Core G&A* outlook range prior to Prudential and Atria is 6% to 8% year-over-year growth, or $1,560 million to $1,600 million
- Including expenses related to Prudential and Atria, our 2025 Core G&A* outlook range is $1,730 million to $1,780 million

SAN DIEGO, Jan. 30, 2025 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its fourth quarter ended December 31, 2024, reporting net income of $271 million, or $3.59 per share. This compares with $218 million, or $2.85 per share, in the fourth quarter of 2023 and $255 million, or $3.39 per share, in the prior quarter.

“2024 marked another milestone year for LPL,” said Rich Steinmeier, CEO. “We delivered double-digit organic asset growth, including the onboarding of one of our largest institutional partners, closed on our acquisition of Atria, continued to advance our pioneering Liquidity & Succession program, and reported record adjusted earnings per share. Looking ahead to 2025, our business momentum and financial strength position us well to continue expanding our leadership across the advisor-mediated marketplace and delivering long-term shareholder value.”

“In Q4, we delivered solid business and financial results,” said Matt Audette, President and CFO. “As we look ahead, we remain excited about the opportunities we have to continue to drive growth, deliver operating leverage, and create long-term shareholder value.”

Dividend Declaration

The Company’s Board of Directors declared a $0.30 per share dividend to be paid on March 25, 2025 to all stockholders of record as of March 11, 2025.

Conference Call and Additional Information

The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, January 30, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

Contacts

Investor Relations
investor.relations@lplfinancial.com

Media Relations
media.relations@lplfinancial.com

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace⁽⁵⁾, LPL supports nearly 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.7 trillion in brokerage and advisory assets on behalf of approximately 6 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”) or its affiliate LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisers and broker-dealers. Members FINRA/SIPC. LPL Financial serves as the clearing and carrying firm for accounts LPL Enterprise introduces to it.

LPL Financial and LPL Enterprise provide financial services only from the United States.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

Forward-Looking Statements

This press release contains statements regarding:

the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Prudential, The Investment Center and Wintrust;
the Company’s future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company’s ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, share-based compensation expense, depreciation and amortization and share repurchases; and
future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company’s expectations and objectives as of January 30, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

the failure to satisfy the closing conditions applicable to the Company’s purchase agreement with The Investment Center, including regulatory approvals;
difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
disruptions in the businesses of the Company that could make it more difficult to maintain relationships with advisors and their clients;
the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
changes in general economic and financial market conditions, including retail investor sentiment;
changes in interest rates and fees payable by banks participating in the Company’s client cash programs, including the Company’s success in negotiating agreements with current or additional counterparties;
the Company’s strategy and success in managing client cash program fees;
fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
changes in the growth and profitability of the Company’s fee-based offerings and asset-based revenues;
the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
the execution of the Company’s capital management plans, including its compliance with the terms of the Company’s amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company’s senior unsecured notes;
strategic acquisitions and investments, including pursuant to the Company’s Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
the price, availability and trading volumes of shares of the Company’s common stock, which will affect the timing and size of future share repurchases by the Company, if any;
the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
whether advisors affiliated with Atria, Prudential, The Investment Center, and Wintrust will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
the performance of third-party service providers to which business processes have been transitioned;
the Company’s ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
the other factors set forth in the Company’s most recent Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission.

Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company’s view as of any date subsequent to the date of this press release.


LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Three Months Ended
	December 31,		September 30,				December 31,
		2024		2024	Change			2023	Change
REVENUE
Advisory	$	1,595,834	$	1,378,050	16	%	$	1,085,497	47	%
Commission:
Sales-based		525,795		429,132	23	%		355,958	48	%
Trailing		439,668		377,400	16	%		326,454	35	%
Total commission		965,463		806,532	20	%		682,412	41	%
Asset-based:
Client cash		378,816		353,855	7	%		352,661	7	%
Other asset-based		290,962		272,336	7	%		228,473	27	%
Total asset-based		669,778		626,191	7	%		581,134	15	%
Service and fee		139,119		145,729	(5	%)		130,680	6	%
Transaction		61,535		58,546	5	%		53,858	14	%
Interest income, net		46,680		49,923	(6	%)		43,312	8	%
Other		33,942		43,423	(22	%)		66,936	(49	%)
Total revenue		3,512,351		3,108,394	13	%		2,643,829	33	%
EXPENSE
Advisory and commission		2,250,427		1,948,065	16	%		1,607,978	40	%
Compensation and benefits		321,933		266,415	21	%		270,709	19	%
Promotional		162,057		164,538	(2	%)		126,800	28	%
Depreciation and amortization		92,032		78,338	17	%		67,936	35	%
Interest expense on borrowings		81,979		67,779	21	%		54,415	51	%
Occupancy and equipment		75,538		69,879	8	%		62,103	22	%
Amortization of other intangibles		42,614		32,461	31	%		28,618	49	%
Brokerage, clearing and exchange		34,789		29,636	17	%		25,917	34	%
Professional services		32,055		26,295	22	%		21,572	49	%
Communications and data processing		18,772		17,916	5	%		17,814	5	%
Other		58,874		59,724	(1	%)		66,180	(11	%)
Total expense		3,171,070		2,761,046	15	%		2,350,042	35	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281		347,348	(2	%)		293,787	16	%
PROVISION FOR INCOME TAXES		70,532		92,045	(23	%)		76,232	(7	%)
NET INCOME	$	270,749	$	255,303	6	%	$	217,555	24	%
EARNINGS PER SHARE
Earnings per share, basic	$	3.62	$	3.41	6	%	$	2.89	25	%
Earnings per share, diluted	$	3.59	$	3.39	6	%	$	2.85	26	%
Weighted-average shares outstanding, basic		74,785		74,776	—	%		75,228	(1	%)
Weighted-average shares outstanding, diluted		75,337		75,405	—	%		76,240	(1	%)

LPL Financial Holdings Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

	Years Ended
	December 31,
		2024		2023	Change
REVENUE
Advisory	$	5,461,858	$	4,135,681	32	%
Commission:
Sales-based		1,763,232		1,252,783	41	%
Trailing		1,542,255		1,299,840	19	%
Total commission		3,305,487		2,552,623	29	%
Asset-based:
Client cash		1,426,528		1,509,869	(6	%)
Other asset-based		1,071,170		867,860	23	%
Total asset-based		2,497,698		2,377,729	5	%
Service and fee		552,020		508,437	9	%
Transaction		236,274		199,939	18	%
Interest income, net		187,606		159,415	18	%
Other		144,164		119,024	21	%
Total revenue		12,385,107		10,052,848	23	%
EXPENSE
Advisory and commission		7,751,006		5,915,807	31	%
Compensation and benefits		1,136,717		979,681	16	%
Promotional		589,339		459,233	28	%
Depreciation and amortization		308,527		246,994	25	%
Occupancy and equipment		281,210		248,620	13	%
Interest expense on borrowings		274,181		186,804	47	%
Amortization of other intangibles		135,234		107,211	26	%
Brokerage, clearing and exchange		127,941		105,984	21	%
Professional services		93,729		72,583	29	%
Communications and data processing		75,838		75,717	—	%
Other		218,493		209,439	4	%
Total expense		10,992,215		8,608,073	28	%
INCOME BEFORE PROVISION FOR INCOME TAXES		1,392,892		1,444,775	(4	%)
PROVISION FOR INCOME TAXES		334,276		378,525	(12	%)
NET INCOME	$	1,058,616	$	1,066,250	(1	%)
EARNINGS PER SHARE
Earnings per share, basic	$	14.17	$	13.88	2	%
Earnings per share, diluted	$	14.03	$	13.69	2	%
Weighted-average shares outstanding, basic		74,713		76,807	(3	%)
Weighted-average shares outstanding, diluted		75,427		77,861	(3	%)

LPL Financial Holdings Inc.
Consolidated Statements of Financial Condition
(In thousands, except share data)
(Unaudited)

	December 31, 2024			September 30, 2024			December 31, 2023
ASSETS
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash and equivalents segregated under federal or other regulations		1,597,249			1,382,867			2,007,312
Restricted cash		119,724			104,881			108,180
Receivables from clients, net		633,834			622,015			588,585
Receivables from brokers, dealers and clearing organizations		76,545			53,763			50,069
Advisor loans, net		2,281,088			1,913,363			1,479,690
Other receivables, net		902,777			802,186			743,317
Investment securities ($42,267, $94,694 and $76,088 at fair value at December 31, 2024, September 30, 2024 and December 31, 2023, respectively)		57,481			111,096			91,311
Property and equipment, net		1,210,027			1,144,676			933,091
Goodwill		2,172,873			1,868,193			1,856,648
Other intangibles, net		1,482,988			782,426			671,585
Other assets		1,815,739			1,681,455			1,390,021
Total assets	$	13,317,404		$	11,941,875		$	10,385,480
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Client payables	$	1,898,665		$	2,039,140		$	2,266,176
Payables to brokers, dealers and clearing organizations		129,228			211,054			163,337
Accrued advisory and commission expenses payable		323,996			252,881			216,541
Corporate debt and other borrowings, net		5,494,724			4,441,913			3,734,111
Accounts payable and accrued liabilities		588,450			485,927			485,963
Other liabilities		1,951,739			1,739,209			1,440,373
Total liabilities		10,386,802			9,170,124			8,306,501
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value; 600,000,000 shares authorized; 130,914,541, 130,779,259 shares and 130,233,328 shares issued at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		131			131			130
Additional paid-in capital		2,066,268			2,059,207			1,987,684
Treasury stock, at cost — 56,253,909, 55,968,552 shares and 55,576,970 shares at December 31, 2024, September 30, 2024 and December 31, 2023, respectively		(4,202,322	)		(4,102,319	)		(3,993,949	)
Retained earnings		5,066,525			4,814,732			4,085,114
Total stockholders’ equity		2,930,602			2,771,751			2,078,979
Total liabilities and stockholders’ equity	$	13,317,404		$	11,941,875		$	10,385,480

LPL Financial Holdings Inc.
Management’s Statements of Operations
(In thousands, except per share data)
(Unaudited)

Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled“Non-GAAP Financial Measures”in this release.

	Quarterly Results
	Q4 2024			Q3 2024			Change		Q4 2023			Change
Gross Profit₍₆₎
Advisory	$	1,595,834		$	1,378,050		16	%	$	1,085,497		47	%
Trailing commissions		439,668			377,400		16	%		326,454		35	%
Sales-based commissions		525,795			429,132		23	%		355,958		48	%
Advisory fees and commissions		2,561,297			2,184,582		17	%		1,767,909		45	%
Production-based payout₍₇₎		(2,248,674	)		(1,910,634	)	18	%		(1,548,540	)	45	%
Advisory fees and commissions, net of payout		312,623			273,948		14	%		219,369		43	%
Client cash₍₈₎		397,001			372,333		7	%		373,979		6	%
Other asset-based₍₉₎		290,962			272,336		7	%		228,473		27	%
Service and fee		139,119			145,729		(5	%)		130,680		6	%
Transaction		61,535			58,546		5	%		53,858		14	%
Interest income, net₍₁₀₎		28,481			31,428		(9	%)		21,975		30	%
Other revenue₍₁₁₎		32,705			3,392		n/m			4,636		n/m
Total net advisory fees and commissions and attachment revenue		1,262,426			1,157,712		9	%		1,032,970		22	%
Brokerage, clearing and exchange expense		(34,789	)		(29,636	)	17	%		(25,917	)	34	%
Gross Profit₍₆₎		1,227,637			1,128,076		9	%		1,007,053		22	%

G&A Expense
Core G&A₍₁₂₎		421,894			359,134		17	%		364,469		16	%
Regulatory charges₍₁₃₎		7,335			24,879		(71	%)		8,905		(18	%)
Promotional (ongoing)₍₁₄₎₍₁₅₎		173,191			175,605		(1	%)		138,457		25	%
Acquisition costs₍₁₅₎		37,261			22,243		68	%		34,931		7	%
Employee share-based compensation		26,067			20,289		28	%		15,535		68	%
Total G&A		665,748			602,150		11	%		562,297		18	%
Loss on extinguishment of debt		3,983			—		100	%		—		100	%
EBITDA₍₁₆₎		557,906			525,926		6	%		444,756		25	%
Depreciation and amortization		92,032			78,338		17	%		67,936		35	%
Amortization of other intangibles		42,614			32,461		31	%		28,618		49	%
Interest expense on borrowings		81,979			67,779		21	%		54,415		51	%
INCOME BEFORE PROVISION FOR INCOME TAXES		341,281			347,348		(2	%)		293,787		16	%
PROVISION FOR INCOME TAXES		70,532			92,045		(23	%)		76,232		(7	%)
NET INCOME	$	270,749		$	255,303		6	%	$	217,555		24	%
Earnings per share, diluted	$	3.59		$	3.39		6	%	$	2.85		26	%
Weighted-average shares outstanding, diluted		75,337			75,405		—	%		76,240		(1	%)
Adjusted EBITDA₍₁₆₎	$	584,783		$	566,169		3	%	$	479,687		22	%
Adjusted EPS₍₁₇₎	$	4.25		$	4.16		2	%	$	3.51		21	%

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Market Drivers
S&P 500 Index (end of period)		5,882			5,762		2%		4,770		23%
Russell 2000 Index (end of period)		2,230			2,230		—%		2,027		10%
Fed Funds daily effective rate (average bps)		466			527		(61bps)		533		(67bps)

Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0		$	892.0		7%	$	735.8		30%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%
Advisory as a % of Total Advisory and Brokerage Assets		55.0	%		56.0	%	(100bps)		54.3	%	70bps

Assets by Platform
Corporate advisory assets₍₁₉₎	$	678.3		$	618.8		10%	$	496.5		37%
Independent RIA advisory assets₍₁₉₎		278.7			273.2		2%		239.3		16%
Brokerage assets		783.7			700.1		12%		618.2		27%
Total Advisory and Brokerage Assets	$	1,740.7		$	1,592.1		9%	$	1,354.1		29%

Centrally Managed Assets
Centrally managed assets₍₂₀₎	$	160.0		$	138.1		16%	$	112.1		43%
Centrally Managed as a % of Total Advisory Assets		16.7	%		15.5	%	120bps		15.2	%	150bps

LPL Financial Holdings Inc.
Operating Metrics
(Dollars in billions, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	49.3		$	23.2		n/m	$	20.5		n/m
Organic net new brokerage assets		18.8			3.8		n/m		4.2		n/m
Total Organic Net New Assets	$	68.0		$	27.0		n/m	$	24.7		n/m

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	21.8		$	0.5		n/m	$	—		n/m
Acquired net new brokerage assets		67.5			0.1		n/m		—		n/m
Total Acquired Net New Assets	$	89.3		$	0.6		n/m	$	—		n/m

Total Net New Assets₍₂₁₎
Net new advisory assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Net new brokerage assets		86.2			3.8		n/m		4.2		n/m
Total Net New Assets	$	157.3		$	27.5		n/m	$	24.7		n/m

Net brokerage to advisory conversions₍₂₂₎	$	4.8		$	3.5		n/m	$	2.6		n/m
Organic advisory NNA annualized growth₍₂₃₎		22.1	%		11.2	%	n/m		12.4	%	n/m
Total organic NNA annualized growth₍₂₃₎		17.1	%		7.2	%	n/m		8.0	%	n/m

Net New Advisory Assets₍₂₁₎
Corporate RIA net new advisory assets	$	64.5		$	24.0		n/m	$	15.9		n/m
Independent RIA net new advisory assets		6.6			(0.3	)	n/m		4.6		n/m
Total Net New Advisory Assets	$	71.1		$	23.7		n/m	$	20.5		n/m
Centrally managed net new advisory assets₍₂₁₎	$	24.9		$	4.4		n/m	$	3.0		n/m

Net buy (sell) activity₍₂₄₎	$	38.3		$	37.7		n/m	$	32.8		n/m

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Client Cash Data
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Client Cash Balances (in billions)₍₂₅₎
Insured cash account sweep	$	38.3		$	32.1		19%	$	34.5		11%
Deposit cash account sweep		10.7			9.6		11%		9.3		15%
Total Bank Sweep		49.0			41.7		18%		43.8		12%
Money market sweep		4.3			2.3		87%		2.4		79%
Total Client Cash Sweep Held by Third Parties		53.3			44.0		21%		46.2		15%
Client cash account (CCA)₍₂₆₎		1.8			1.8		—%		2.0		(10%)
Total Client Cash Balances	$	55.1		$	45.8		20%	$	48.2		14%
Client Cash Balances as a % of Total Assets		3.2	%		2.9	%	30bps		3.6	%	(40bps)

^{Note: Totals may not foot due to rounding.}

	Three Months Ended
	December 31, 2024					September 30, 2024					December 31, 2023
Interest-Earnings Assets	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎	Average Balance (in billions)		Revenue		Net Yield (bps)₍₂₇₎
Insured cash account sweep	$	34.8	$	292,661	335	$	31.1	$	259,503	332	$	33.3	$	266,058	317
Deposit cash account sweep		9.8		83,879	340		9.2		92,765	400		8.9		84,901	379
Total Bank Sweep		44.6		376,540	336		40.3		352,268	348		42.2		350,959	330
Money market sweep		3.3		2,277	28		2.3		1,587	28		2.4		1,702	28
Total Client Cash Held By Third Parties		47.9		378,817	315		42.6		353,855	330		44.6		352,661	314
Client cash account (CCA)₍₂₆₎		1.8		18,184	407		1.6		18,478	472		1.8		21,318	475
Total Client Cash		49.7		397,001	318		44.2		372,333	335		46.4		373,979	320
Margin receivables		0.6		11,506	829		0.5		11,199	885		0.5		10,874	878
Other interest revenue		1.3		16,975	524		1.5		20,229	533		0.9		11,101	507
Total Client Cash and Interest Income, Net	$	51.6	$	425,482	329	$	46.2	$	403,761	348	$	47.7	$	395,954	329

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Monthly Metrics
(Dollars in billions, except where noted)
(Unaudited)

	December 2024		November 2024		Change	October 2024			September 2024
Advisory and Brokerage Assets₍₁₈₎
Advisory assets	$	957.0	$	973.8	(2%)	$	910.6		$	892.0
Brokerage assets		783.7		785.6	—%		762.7			700.1
Total Advisory and Brokerage Assets	$	1,740.7	$	1,759.3	(1%)	$	1,673.3		$	1,592.1

Organic Net New Assets (NNA)₍₂₁₎
Organic net new advisory assets	$	12.5	$	27.9	n/m	$	8.8		$	11.0
Organic net new brokerage assets		12.9		6.3	n/m		(0.5	)		0.5
Total Organic Net New Assets	$	25.5	$	34.2	n/m	$	8.3		$	11.4

Acquired Net New Assets₍₂₁₎
Acquired net new advisory assets	$	—	$	0.5	n/m	$	21.3		$	0.2
Acquired net new brokerage assets		0.2		0.3	n/m		67.0		$	0.1
Total Acquired Net New Assets	$	0.3	$	0.8	n/m	$	88.3		$	0.3

Total Net New Assets₍₂₁₎
Net new advisory assets	$	12.6	$	28.4	n/m	$	30.1		$	11.2
Net new brokerage assets		13.2		6.6	n/m		66.5			0.5
Total Net New Assets	$	25.8	$	35.0	n/m	$	96.6		$	11.7
Net brokerage to advisory conversions₍₂₂₎	$	2.0	$	1.7	n/m	$	1.1		$	1.2

Client Cash Balances₍₂₅₎
Insured cash account sweep	$	38.3	$	34.8	10%	$	34.7		$	32.1
Deposit cash account sweep		10.7		9.9	8%		9.7			9.6
Total Bank Sweep		49.0		44.7	10%		44.4			41.7
Money market sweep		4.3		4.3	—%		2.6			2.3
Total Client Cash Sweep Held by Third Parties		53.3		49.0	9%		47.0			44.0
Client cash account (CCA)₍₂₆₎		1.8		1.5	20%		1.3			1.8
Total Client Cash Balances		55.1		50.5	9%		48.3			45.8

Net buy (sell) activity₍₂₄₎	$	13.5	$	12.4	n/m	$	12.5		$	12.2

Market Drivers
S&P 500 Index (end of period)		5,882		6,032	(2%)		5,705			5,762
Russell 2000 Index (end of period)		2,230		2,435	(8%)		2,197			2,230
Fed Funds effective rate (average bps)		448		465	(17bps)		483			513

^{Note: Totals may not foot due to rounding.}

LPL Financial Holdings Inc.
Financial Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Commission Revenue by Product
Annuities	$	561,918		$	481,852		17%	$	408,480		38%
Mutual funds		232,529			193,451		20%		167,392		39%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		65,855			38,736		70%		36,179		82%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Commission Revenue by Sales-based and Trailing
Sales-based commissions
Annuities	$	314,591		$	265,955		18%	$	221,070		42%
Mutual funds		52,908			42,310		25%		37,016		43%
Fixed income		59,332			55,707		7%		40,441		47%
Equities		45,829			36,786		25%		29,920		53%
Other		53,135			28,374		87%		27,511		93%
Total sales-based commissions	$	525,795		$	429,132		23%	$	355,958		48%
Trailing commissions
Annuities	$	247,327		$	215,897		15%	$	187,410		32%
Mutual funds		179,621			151,141		19%		130,376		38%
Other		12,720			10,362		23%		8,668		47%
Total trailing commissions	$	439,668		$	377,400		16%	$	326,454		35%
Total commission revenue	$	965,463		$	806,532		20%	$	682,412		41%

Payout Rate₍₇₎		87.79	%		87.46	%	33bps		87.59	%	20bps

LPL Financial Holdings Inc.
Capital Management Measures
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Q4 2023
Cash and equivalents	$	967,079		$	1,474,954		$	465,671
Cash at regulated subsidiaries		(884,779	)		(992,450	)		(410,313	)
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Corporate Cash₍₃₎	$	479,438		$	708,390		$	183,685

Corporate Cash₍₃₎
Cash at the Parent	$	39,782		$	435,109		$	26,587
Excess cash at regulated subsidiaries per the Credit Agreement		397,138			225,886			128,327
Cash at non-regulated subsidiaries		42,518			47,395			28,771
Corporate Cash	$	479,438		$	708,390		$	183,685

Leverage Ratio
Total debt	$	5,517,000		$	4,469,175		$	3,757,200
Total corporate cash		479,438			708,390			183,685
Credit Agreement Net Debt	$	5,037,562		$	3,760,785		$	3,573,515
Credit Agreement EBITDA (trailing twelve months)₍₂₈₎	$	2,665,033		$	2,340,886		$	2,194,807
Leverage Ratio	1.89x			1.61x			1.63x

	December 31, 2024
Total Debt	Balance		Current Applicable Margin	Interest Rate		Maturity
Revolving Credit Facility_(a)	$	1,047,000	ABR+37.5 bps / SOFR+147.5 bps	6.007	%	5/20/2029
Broker-Dealer Revolving Credit Facility		—	SOFR+135 bps	5.840	%	5/19/2025
Senior Unsecured Term Loan A		1,020,000	SOFR+147.5 bps_(b)	6.000	%	12/5/2026
Senior Unsecured Notes		500,000	5.700% Fixed	5.700	%	5/20/2027
Senior Unsecured Notes		400,000	4.625% Fixed	4.625	%	11/15/2027
Senior Unsecured Notes		750,000	6.750% Fixed	6.750	%	11/17/2028
Senior Unsecured Notes		900,000	4.000% Fixed	4.000	%	3/15/2029
Senior Unsecured Notes		400,000	4.375% Fixed	4.375	%	5/15/2031
Senior Unsecured Notes		500,000	6.000% Fixed	6.000	%	5/20/2034
Total / Weighted Average	$	5,517,000		5.532	%

^{(a) Secured borrowing capacity of $2.25 billion at LPL Holdings, Inc. (the “Parent”).}
^{(b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.}

LPL Financial Holdings Inc.
Key Business and Financial Metrics
(Dollars in thousands, except where noted)
(Unaudited)

	Q4 2024			Q3 2024			Change	Q4 2023			Change
Advisors
Advisors		28,888			23,686		22%		22,660		27%
Net new advisors		5,202			224		n/m		256		n/m
Annualized advisory fees and commissions per advisor₍₂₉₎	$	390		$	371		5%	$	314		24%
Average total assets per advisor ($ in millions)₍₃₀₎	$	60.3		$	67.2		(10%)	$	59.8		1%
Transition assistance loan amortization ($ in millions)₍₃₁₎	$	76.3		$	69.1		10%	$	55.1		38%
Total client accounts (in millions)		10.0			8.7		15%		8.3		20%

Employees		7,780			7,342		6%		7,372		6%

Services Group
Services Group subscriptions₍₃₂₎
Professional Services		1,925			1,890		2%		1,895		2%
Business Optimizers		3,980			3,798		5%		3,363		18%
Planning and Advice		799			735		9%		548		46%
Total Services Group subscriptions		6,704			6,423		4%		5,806		15%
Services Group advisor count		4,521			4,340		4%		3,850		17%

AUM retention rate (quarterly annualized)₍₃₃₎		97.3	%		97.0	%	30bps		98.4	%	(110bps)

Capital Management
Capital expenditures ($ in millions)₍₃₄₎	$	165.5		$	147.1		13%	$	105.9		56%
Acquisitions, net ($ in millions)₍₃₅₎	$	847.9		$	34.1		n/m	$	92.9		n/m

Share repurchases ($ in millions)	$	100.0		$	—		100%	$	225.0		(56%)
Dividends ($ in millions)		22.5			22.4		—%		22.6		—%
Total Capital Returned ($ in millions)	$	122.5		$	22.4		n/m	$	247.6		(51%)

Non-GAAP Financial Measures

Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

Adjusted EPS and Adjusted net income

Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, certain regulatory charges, losses on extinguishment of debt, and amounts related to the departure of the Company’s former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

Gross profit

Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

Core G&A

Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company’s total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

EBITDA and Adjusted EBITDA

EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, certain regulatory charges, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

Credit Agreement EBITDA

Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company’s amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

Endnote Disclosures

(1) Represents the estimated total advisory and brokerage assets expected to transition to the Company’s primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.

(2) The terms “Financial Advisors” and “Advisors” refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial, an SEC-registered broker-dealer and investment advisor, or one of Atria’s seven introducing broker-dealer subsidiaries.

(3) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company’s Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria’s introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company’s Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.

(4) Compliance with the Leverage Ratio is only required under the Company’s revolving credit facility.

(5) The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.

(6) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
Total revenue_(a)	$	3,512,351		$	3,108,394	$	2,643,829
Advisory and commission expense		2,250,427			1,948,065		1,607,978
Brokerage, clearing and exchange expense		34,789			29,636		25,917
Employee deferred compensation		(502	)		2,617		2,881
Gross profit_(a)	$	1,227,637		$	1,128,076	$	1,007,053

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

Below is a calculation of gross profit for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Total revenue_(a)	$	12,385,107	$	10,052,848
Advisory and commission expense		7,751,006		5,915,807
Brokerage, clearing and exchange expense		127,941		105,984
Employee deferred compensation		4,815		4,101
Gross profit_(a)	$	4,501,345	$	4,026,956

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

(7) Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):

	Q4 2024			Q3 2024			Q4 2023
Advisory and commission expense	$	2,250,427		$	1,948,065		$	1,607,978
Less: Advisor deferred compensation		(1,753	)		(37,431	)		(59,438	)
Production-based payout	$	2,248,674		$	1,910,634		$	1,548,540

Advisory and commission revenue	$	2,561,297		$	2,184,582		$	1,767,909

Payout rate		87.79	%		87.46	%		87.59	%

(8) Below is a reconciliation of client cash revenue per Management’s Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Client cash on Management’s Statement of Operations	$	397,001		$	372,333		$	373,979
Interest income on CCA balances segregated under federal or other regulations₍₁₀₎		(18,185	)		(18,478	)		(21,318	)
Client cash on Consolidated Statements of Income	$	378,816		$	353,855		$	352,661

(9) Consists of revenue from the Company’s sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.

(10) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of interest income, net per Management’s Statements of Operations to interest income, net on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
Interest income, net on Management’s Statement of Operations	$	28,481	$	31,428	$	21,975
Interest income on CCA balances segregated under federal or other regulations₍₈₎		18,185		18,478		21,318
Interest income on deferred compensation		14		17		19
Interest income, net on Consolidated Statements of Income	$	46,680	$	49,923	$	43,312

(11) During the first quarter of 2024, the Company disaggregated the activity previously reported in the interest income and other, net line item into its interest income, net and other revenue components. Prior period amounts have been reclassified to conform to the current presentation. Below is a reconciliation of other revenue per Management’s Statements of Operations to other revenue on the Company’s consolidated statements of income for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Other revenue on Management’s Statement of Operations_(a)	$	32,705		$	3,392		$	4,636
Interest income on deferred compensation		(14	)		(17	)		(19	)
Deferred compensation		1,251			40,048			62,319
Other revenue on Consolidated Statements of Income	$	33,942		$	43,423		$	66,936

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.}

(12) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company’s total expense to core G&A for the periods presented (in thousands):

	Q4 2024			Q3 2024			Q4 2023
Core G&A Reconciliation
Total expense	$	3,171,070		$	2,761,046		$	2,350,042
Advisory and commission		(2,250,427	)		(1,948,065	)		(1,607,978	)
Depreciation and amortization		(92,032	)		(78,338	)		(67,936	)
Interest expense on borrowings		(81,979	)		(67,779	)		(54,415	)
Brokerage, clearing and exchange		(34,789	)		(29,636	)		(25,917	)
Amortization of other intangibles		(42,614	)		(32,461	)		(28,618	)
Employee deferred compensation		502			(2,617	)		(2,881	)
Loss on extinguishment of debt		(3,983	)		(—	)		(—	)
Total G&A		665,748			602,150			562,297
Promotional (ongoing)₍₁₄₎₍₁₅₎		(173,191	)		(175,605	)		(138,457	)
Acquisition costs₍₁₅₎		(37,261	)		(22,243	)		(34,931	)
Employee share-based compensation		(26,067	)		(20,289	)		(15,535	)
Regulatory charges₍₁₃₎		(7,335	)		(24,879	)		(8,905	)
Core G&A	$	421,894		$	359,134		$	364,469

Below is a reconciliation of the Company’s total expense to core G&A for the years presented (in thousands):

	Years Ended December 31,
		2024			2023
Core G&A Reconciliation
Total expense	$	10,992,215		$	8,608,073
Advisory and commission		(7,751,006	)		(5,915,807	)
Depreciation and amortization		(308,527	)		(246,994	)
Interest expense on borrowings		(274,181	)		(186,804	)
Amortization of other intangibles		(135,234	)		(107,211	)
Brokerage, clearing and exchange		(127,941	)		(105,984	)
Employee deferred compensation		(4,815	)		(4,101	)
Loss on extinguishment of debt		(3,983	)		—
Total G&A		2,386,528			2,041,172
Promotional (ongoing)₍₁₄₎₍₁₅₎		(628,938	)		(486,326	)
Regulatory charges₍₁₃₎		(47,278	)		(71,320	)
Employee share-based compensation		(88,957	)		(66,024	)
Acquisition costs₍₁₅₎		(105,905	)		(48,103	)
Core G&A	$	1,515,450		$	1,369,399

(13) Regulatory charges for the three months ended September 30, 2024 and year ended December 31, 2024 include charges related to a settlement with the SEC to resolve the Company’s civil investigation of certain elements of the Company’s Anti-Money Laundering (“AML”) compliance program. The Company has recorded an $18.0 million charge for the quarter ended September 30, 2024 and reached a settlement with the staff of the SEC and paid the civil monetary penalty in January 2025. Regulatory charges for the year ended December 31, 2023 include a $40.0 million charge to reflect the amount of the penalty related to the SEC’s civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications that was not covered by the Company’s captive insurance subsidiary. The Company reached a settlement with the staff of the SEC and paid the civil monetary penalty of $50.0 million in August 2024.

(14) Promotional (ongoing) includes $13.4 million, $13.0 million and $12.5 million for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs. Promotional (ongoing) includes $46.6 million and $30.7 million of such support costs for the twelve months ended December 31, 2024 and 2023, respectively.

(15) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):

	Q4 2024		Q3 2024			Q4 2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	11,249	$	5,849		$	26,712
Compensation and benefits		15,950		8,352			2,829
Professional services		7,357		6,685			3,664
Promotional₍₁₄₎		2,235		1,964			863
Other		470		(607	)		863
Acquisition costs	$	37,261	$	22,243		$	34,931

The below table summarizes the primary components of acquisition costs for the years presented (in thousands):

	Years Ended December 31,
		2024		2023
Acquisition costs
Fair value mark on contingent consideration₍₃₆₎	$	41,721	$	26,712
Professional services		20,855		10,044
Compensation and benefits		34,980		6,069
Promotional₍₁₄₎		7,006		3,593
Other		1,343		1,685
Acquisition costs	$	105,905	$	48,103

(16) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):

	Q4 2024			Q3 2024		Q4 2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	270,749		$	255,303	$	217,555
Interest expense on borrowings		81,979			67,779		54,415
Provision for income taxes		70,532			92,045		76,232
Depreciation and amortization		92,032			78,338		67,936
Amortization of other intangibles		42,614			32,461		28,618
EBITDA	$	557,906		$	525,926	$	444,756
Regulatory charges₍₁₃₎		—			18,000		—
Acquisition costs₍₁₅₎		37,261			22,243		34,931
Departure of former Chief Executive Officer_(a)		(14,367	)		—		—
Loss on extinguishment of debt		3,983			—		—
Adjusted EBITDA	$	584,783		$	566,169	$	479,687

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

The below table is a reconciliation of net income to EBITDA and adjusted EBITDA for the years presented (in thousands):

		2024			2023
EBITDA and adjusted EBITDA Reconciliation
Net income	$	1,058,616		$	1,066,250
Interest expense on borrowings		274,181			186,804
Provision for income taxes		334,276			378,525
Depreciation and amortization		308,527			246,994
Amortization of other intangibles		135,234			107,211
EBITDA	$	2,110,834		$	1,985,784
Regulatory charges₍₁₃₎		18,000			40,000
Acquisition costs₍₁₅₎		105,905			48,103
Departure of former Chief Executive Officer_(a)		(14,367	)		—
Loss on extinguishment of debt		3,983			—
Adjusted EBITDA	$	2,224,355		$	2,073,887

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

(17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):

	Q4 2024						Q3 2024						Q4 2023
	Amount			Per Share			Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	270,749		$	3.59		$	255,303		$	3.39		$	217,555		$	2.85
Regulatory charges₍₁₃₎		—			—			18,000			0.24			—			—
Amortization of other intangibles		42,614			0.57			32,461			0.43			28,618			0.38
Acquisition costs₍₁₅₎		37,261			0.49			22,243			0.29			34,931			0.46
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—			—			—
Loss on extinguishment of debt		3,983			0.05			—			—			—			—
Tax benefit		(19,978	)		(0.27	)		(14,650	)		(0.19	)		(13,789	)		(0.18	)
Adjusted net income / adjusted EPS	$	320,262		$	4.25		$	313,357		$	4.16		$	267,315		$	3.51
Diluted share count		75,337						75,405						76,240
Note: Totals may not foot due to rounding.

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the years presented (in thousands, except per share data):

	Years Ended December 31,
		2024						2023
	Amount			Per Share			Amount			Per Share
Net income / earnings per diluted share	$	1,058,616		$	14.03		$	1,066,250		$	13.69
Regulatory charges₍₁₃₎		18,000			0.24			40,000			0.51
Amortization of other intangibles		135,234			1.79			107,211			1.38
Acquisition costs₍₁₅₎		105,905			1.40			48,103			0.62
Departure of former Chief Executive Officer_(a)		(14,367	)		(0.19	)		—			—
Loss on extinguishment of debt		3,983			0.05			—			—
Tax benefit		(62,089	)		(0.82	)		(37,418	)		(0.48	)
Adjusted net income / adjusted EPS	$	1,245,282		$	16.51		$	1,224,146		$	15.72
Diluted share count		75,427						77,861
Note: Totals may not foot due to rounding.

^{(a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.}

(18) Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s seven introducing broker-dealer subsidiaries.

(19) Assets on the Company’s corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company’s independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.

(20) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.

(21) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.

(22) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.

(23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.

(24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.

(25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):

		Q4 2024			Q3 2024			Q4 2023
Purchased money market funds		$	41.0		$	38.5		$	29.5

(26) During the first quarter of 2024, the Company updated its definition of client cash account balances to exclude other client payables. Prior period disclosures have been updated to reflect this change as applicable.

(27) Calculated by dividing revenue for the period by the average balance during the period.

(28) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):

	Q4 2024		Q3 2024		Q4 2023
EBITDA and Credit Agreement EBITDA Reconciliations
Net income	$	1,058,616	$	1,005,422	$	1,066,250
Interest expense on borrowings		274,181		246,618		186,804
Provision for income taxes		334,276		339,977		378,525
Depreciation and amortization		308,527		284,431		246,994
Amortization of other intangibles		135,234		121,238		107,211
EBITDA	$	2,110,834	$	1,997,686	$	1,985,784
Credit Agreement Adjustments:
Acquisition costs and other₍₁₅₎₍₃₇₎	$	223,614	$	236,007	$	110,170
Employee share-based compensation		88,957		78,425		66,024
M&A accretion₍₃₈₎		235,048		26,265		30,268
Advisor share-based compensation		2,597		2,503		2,561
Loss on extinguishment of debt		3,983		—		—
Credit Agreement EBITDA	$	2,665,033	$	2,340,886	$	2,194,807

(29) Calculated based on the average advisor count from the current period and prior periods.

(30) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.

(31) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.

(32) Refers to active subscriptions related to professional services offerings (CFO Solutions, Marketing Solutions, Admin Solutions, Advisor Institute, Bookkeeping, Partial Book Sales, CFO Essentials, Digital Marketing, Payroll Services and HR Solutions) and business optimizer offerings (M&A Solutions, Digital Office, Resilience Plans and Assurance Plans), as well as planning and advice services (Paraplanning, Tax Planning, and High Net Worth Services) for which subscriptions are the number of advisors using the service.

(33) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.

(34) Capital expenditures represent cash payments for property and equipment during the period.

(35) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period.

(36) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the consolidated statements of income.

(37) Acquisition costs and other primarily include acquisition costs, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company’s former Chief Executive Officer and related clawback of share-based compensation awards, an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with certain elements of the Company’s AML compliance program, and a $40.0 million regulatory charge recognized during the three months ended September 30, 2023 to reflect the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with records preservation requirements for business-related electronic communications stored on personal devices that have not been approved by the Company.

(38) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of the transaction.

The MIL Network –

January 31, 2025

MIL-OSI: FinWise Bancorp Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

– Loan Originations of $5.0 Billion for 2024, including $1.3 Billion for Fourth Quarter –

– Net Income of $12.7 Million for 2024, including $2.8 Million for Fourth Quarter –

– Diluted Earnings Per Share of $0.93 for 2024, including $0.20 for Fourth Quarter –

MURRAY, Utah, Jan. 30, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Loan originations totaled $1.3 billion, compared to $1.4 billion for the quarter ended September 30, 2024, and $1.2 billion for the fourth quarter of the prior year
Net interest income was $15.5 million, compared to $14.8 million for the quarter ended September 30, 2024, and $14.4 million for the fourth quarter of the prior year
Net income was $2.8 million, compared to $3.5 million for the quarter ended September 30, 2024, and $4.2 million for the fourth quarter of the prior year
Diluted earnings per share (“EPS”) were $0.20 for the quarter, compared to $0.25 for the quarter ended September 30, 2024, and $0.32 for the fourth quarter of the prior year
Efficiency ratio¹ was 64.2%, compared to 67.5% for the quarter ended September 30, 2024, and 56.0% for the fourth quarter of the prior year
Nonperforming loan balances were $36.4 million as of December 31, 2024, compared to $30.6 million as of September 30, 2024, and $27.1 million as of December 31, 2023. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively

“Our fourth quarter results capped off a strong 2024 for FinWise, as we made significant progress in our goal to expand and diversify our sources of revenue to enhance the company’s long-term growth,” said Kent Landvatter, CEO of FinWise. “We were also pleased with the rebound in loan originations from existing programs, as well as the number of new strategic programs we announced, including four new Lending programs, two of which include our Credit Enhancement product, one Payments and one Credit Card program. As we look ahead to 2025, we are excited about the outlook, and currently anticipate continued stability in originations from existing programs, acceleration in production from new and ramping programs, a strong pipeline for new partners and remain committed to generating positive operating leverage.”

____________________

¹ See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.

Selected Financial and Other Data

($ in thousands, except per share amounts)	As of and for the Three Months Ended									As of and for the Years Ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024			12/31/2023
Amount of loans originated	$	1,305,028		$	1,448,251		$	1,177,704		$	5,015,662		$	4,303,361
Net income	$	2,793		$	3,454		$	4,156		$	12,742		$	17,460
Diluted EPS	$	0.20		$	0.25		$	0.32		$	0.93		$	1.33
Return on average assets		1.6	%		2.1	%		2.9	%		2.0	%		3.5	%
Return on average equity		6.5	%		8.3	%		10.8	%		7.7	%		11.9	%
Yield on loans		14.01	%		14.16	%		16.21	%		14.47	%		17.05	%
Cost of interest-bearing deposits		4.30	%		4.85	%		4.82	%		4.57	%		4.22	%
Net interest margin		10.00	%		9.70	%		10.61	%		9.99	%		11.65	%
Efficiency ratio⁽¹⁾		64.2	%		67.5	%		56.0	%		64.9	%		53.4	%
Tangible book value per share⁽²⁾	$	13.15		$	12.90		$	12.41		$	13.15		$	12.41
Tangible shareholders’ equity to tangible assets⁽²⁾		23.3	%		24.9	%		26.5	%		23.3	%		26.5	%
Leverage ratio (Bank under CBLR)		20.6	%		20.3	%		20.7	%		20.6	%		20.7	%
Full-time equivalent employees		196			194			162			196			162

(1) This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.
(2) Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.

Net Interest Income
Net interest income was $15.5 million for the fourth quarter of 2024, compared to $14.8 million for the prior quarter and $14.4 million for the prior year period. The increase from the prior quarter was primarily due to an average balance increase in the loans held for investment (“HFI”) portfolio and a decrease in yields paid on interest-earning deposits, principally certificate of deposits. Further contributing to the increase from the prior quarter was a third quarter 2024 decrease in net interest income of $0.5 million for accrued interest not previously reversed at the time loans were deemed nonperforming. The increase from the prior year period was primarily due to increases in the average balances of loans held-for-sale and loans HFI portfolios and was partially offset by yield decreases on those same portfolios as well as decreased volumes and rates paid on the Company’s interest bearing deposits.

Loan originations totaled $1.3 billion for the fourth quarter, compared to $1.4 billion for the prior quarter of 2024 and $1.2 billion for the prior year period.

Net interest margin for the fourth quarter of 2024 was 10.00%, compared to 9.70% for the prior quarter and 10.61% for the prior year period. The increase in net interest margin from the prior quarter is primarily attributable to the current quarter decrease in the cost of certificates of deposits and the growth in the overall loan portfolio. The decrease from the prior year period is primarily attributable to the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans.

Provision for Credit Losses
The Company’s provision for credit losses was $3.9 million for the fourth quarter of 2024, compared to $2.2 million for the prior quarter and $3.2 million for the prior year period. The provision for credit losses increased when compared to the prior quarter and prior year period due primarily to a net charge-off on the non-guaranteed portion of SBA loans in the fourth quarter of 2024 of $1.0 million.

Non-interest Income

	Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Non-interest income
Strategic Program fees	$	4,899		$	4,862		$	4,229
Gain on sale of loans		872			393			440
SBA loan servicing fees, net		181			87			572
Change in fair value on investment in BFG		(200	)		(100	)		200
Credit enhancement income		25			47			—
Other miscellaneous income		(174	)		765			716
Total non-interest income	$	5,603		$	6,054		$	6,157

The decrease in non-interest income from the prior quarter and prior year period was primarily due to a decrease in other miscellaneous income resulting from the $0.9 million charge-off of unamortized premium on approximately $160.0 million of callable CDs which were called during the fourth quarter of 2024 and replaced with lower cost CDs. This decrease was partially offset by the $0.5 million gain on sale of the guaranteed portion of SBA loans that occurred during the fourth quarter of 2024.

Non-interest Expense

	Three Months Ended
($ in thousands)	12/31/2024		9/30/2024		12/31/2023
Non-interest expense
Salaries and employee benefits	$	9,375	$	9,659	$	7,396
Professional services		556		1,331		1,433
Occupancy and equipment expenses		1,094		1,046		923
Credit enhancement expense		5		3		—
Other operating expenses		2,534		2,010		1,751
Total non-interest expense	$	13,564	$	14,049	$	11,503

The decrease in non-interest expense from the prior quarter was primarily due to a decrease in salaries and employee benefits resulting from bonus accrual reductions and a decrease in professional services expense resulting from a reduction in accruals for legal services. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure.

Reflecting the expenses incurred to develop the Company’s business infrastructure, the Company’s efficiency ratio was 64.2% for the fourth quarter of 2024, compared to 67.5% for the prior quarter and 56.0% for the prior year period. As a result of the infrastructure build, the Company anticipates the efficiency ratio will remain elevated until the Company begins to realize the revenues associated with the new programs developed.

Tax Rate
The Company’s effective tax rate was 24.3% for the fourth quarter of 2024, compared to 25.1% for the prior quarter and 28.5% for the prior year period. The decrease from the prior quarter was due primarily to more favorable resolution of historical state tax matters during the fourth quarter of 2024. The decrease from the prior year period was primarily due to a reduction in permanent differences impacting income tax expense.

Net Income
Net income was $2.8 million for the fourth quarter of 2024, compared to $3.5 million for the prior quarter and $4.2 million for the prior year period. The changes in net income for the three months ended December 31, 2024 compared to the prior quarter and prior year period are the result of the factors discussed above.

Balance Sheet
The Company’s total assets were $746.0 million as of December 31, 2024, an increase from $683.0 million as of September 30, 2024 and $586.2 million as of December 31, 2023. The increase in total assets from September 30, 2024 was primarily due to continued growth in the Company’s loans HFI, net, and loans held-for-sale portfolios of $29.7 million and $7.6 million, respectively, as well as an increase of $21.5 million in interest-bearing cash deposits. The increase in total assets compared to December 31, 2023 was primarily due to increases in the Company’s loans HFI, net, and loans held-for-sale portfolios of $89.3 million and $44.1 million, respectively, as well as an increase in investment securities available-for-sale of $29.9 million, partially offset by a decrease of $17.0 million in interest-bearing deposits.

The following table shows the gross loans HFI balances as of the dates indicated:

	12/31/2024					9/30/2024					12/31/2023
($ in thousands)	Amount		% of total loans			Amount		% of total loans			Amount		% of total loans
SBA	$	255,056		54.8	%	$	251,439		57.9	%	$	239,922		64.5	%
Commercial leases		70,153		15.1	%		64,277		14.8	%		38,110		10.2	%
Commercial, non-real estate		3,691		0.8	%		3,025		0.7	%		2,457		0.7	%
Residential real estate		51,574		11.1	%		41,391		9.5	%		38,123		10.2	%
Strategic Program loans		20,122		4.3	%		19,409		4.5	%		19,408		5.2	%
Commercial real estate:
Owner occupied		41,046		8.8	%		32,480		7.5	%		20,798		5.6	%
Non-owner occupied		1,379		0.3	%		2,736		0.7	%		2,025		0.5	%
Consumer		22,212		4.8	%		19,206		4.4	%		11,372		3.1	%
Total period end loans	$	465,233		100.0	%	$	433,963		100.0	%	$	372,215		100.0	%

Note: SBA loans as of December 31, 2024, September 30, 2024 and December 31, 2023 include $158.7 million, $156.3 million and $131.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans with annual interest rates below 36% as of December 31, 2024, September 30, 2024 and December 31, 2023 was $3.1 million, $3.2 million and $3.6 million, respectively.

Total gross loans HFI as of December 31, 2024 increased compared to September 30, 2024 and December 31, 2023. The Company experienced growth across all loan portfolios, with the exception of non-owner occupied CRE, consistent with its strategy to increase its loan portfolio with higher quality, lower rate loans.

The following table shows the Company’s deposit composition as of the dates indicated:

	As of
	12/31/2024					9/30/2024					12/31/2023
($ in thousands)	Amount		Percent			Amount		Percent			Amount		Percent
Noninterest-bearing demand deposits	$	126,782		23.3	%	$	142,785		29.2	%	$	95,486		23.6	%
Interest-bearing deposits:
Demand		71,403		13.1	%		58,984		12.1	%		50,058		12.4	%
Savings		9,287		1.7	%		9,592		1.9	%		8,633		2.1	%
Money market		16,709		3.0	%		15,027		3.1	%		11,661		2.9	%
Time certificates of deposit		320,771		58.9	%		262,271		53.7	%		238,995		59.0	%
Total period end deposits	$	544,952		100.0	%	$	488,659		100.0	%	$	404,833		100.0	%

The increase in total deposits from September 30, 2024 and December 31, 2023 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from December 31, 2023 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.

Total shareholders’ equity as of December 31, 2024 increased $3.4 million to $173.7 million from $170.4 million at September 30, 2024. Compared to December 31, 2023, total shareholders’ equity increased by $18.7 million from $155.1 million. The increase from September 30, 2024 was primarily due to the Company’s net income. The increase from December 31, 2023 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG, partially offset by the repurchase of common stock under the Company’s share repurchase program.

Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

	As of
Capital Ratios	12/31/2024			9/30/2024			12/31/2023			Well-Capitalized Requirement
Leverage ratio		20.6	%		20.3	%		20.7	%		9.0	%

The leverage ratio increase from the prior quarter resulted primarily from earnings generated by operations growing at a faster pace than average assets. The slight decrease in the leverage ratio from the prior year period resulted primarily from the growth in the loan portfolio. The Bank’s capital levels remain significantly above well-capitalized guidelines as of December 31, 2024.

Share Repurchase Program
Since the share repurchase program’s inception in March 2024 through December 31, 2024, the Company has repurchased a total of 44,608 shares for $0.5 million. There were no shares repurchased during the fourth quarter of 2024.

Asset Quality
The recorded balances of nonperforming loans were $36.4 million, or 7.8% of total loans HFI, as of December 31, 2024, compared to $30.6 million, or 7.1% of total loans HFI, as of September 30, 2024 and $27.1 million, or 7.3% of total loans HFI, as of December 31, 2023. The balances of nonperforming loans guaranteed by the SBA were $19.2 million, $17.8 million, and $15.0 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. The increase in nonperforming loans from the prior periods was primarily attributable to lingering financial stress on borrowers from the longer than expected higher interest rate environment. The Company’s allowance for credit losses to total loans HFI was 2.8% as of December 31, 2024 compared to 2.9% as of September 30, 2024 and 3.5% as of December 31, 2023. The decrease in the ratio from the prior quarter and prior year period was primarily due to the increased balance of the guaranteed portion of the SBA 7(a) program loans, growth in the balances of lower risk CRE, leasing and other HFI loan portfolios, and the shift in our Strategic Program HFI loan balances to programs with lower historical losses.

The Company’s net charge-offs were $3.2 million, $2.4 million and $3.4 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The increase from the prior quarter is primarily due to charge-offs relating to SBA loans that moved to nonaccrual status in the fourth quarter as well as increased net charge-offs in the Strategic Program loans portfolio. The decrease from the prior year period is primarily due to increased recoveries during the fourth quarter of 2024.

The following table presents a summary of changes in the allowance for credit losses and asset quality ratios for the periods indicated:

	Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Allowance for credit losses:
Beginning balance	$	12,661		$	13,127		$	12,986
Provision for credit losses⁽¹⁾		3,766			1,944			3,272
Charge offs
Residential real estate		(206	)		(27	)		(104	)
Commercial real estate
Owner occupied		(411	)		(103	)		(561	)
Non-owner occupied		—			(221	)		—
Commercial and industrial		(555	)		(96	)		(281	)
Consumer		(60	)		(15	)		(22	)
Lease financing receivables					(113	)		—
Strategic Program loans		(2,528	)		(2,360	)		(2,656	)
Recoveries
Construction and land development		—			—			—
Residential real estate		6			3			3
Residential real estate multifamily		—			—			—
Commercial real estate
Owner occupied		112			219			(11	)
Non-owner occupied		—			—			—
Commercial and industrial		—			2			1
Consumer		1			4			—
Lease financing receivables		77			8			—
Strategic Program loans		313			289			261
Ending Balance	$	13,176		$	12,661		$	12,888

*Credit Quality Data*	As of and For the Three Months Ended
($ in thousands)	12/31/2024			9/30/2024			12/31/2023
Nonperforming loans:
Guaranteed	$	19,204		$	17,804		$	14,966
Unguaranteed		17,227			12,844			12,161
Total nonperforming loans	$	36,431		$	30,648		$	27,127
Allowance for credit losses	$	13,176		$	12,661		$	12,888
Net charge offs	$	3,249		$	2,409		$	3,370
Total loans held for investment	$	465,233		$	433,963		$	372,215
Total loans held for investment less guaranteed balances	$	306,482		$	277,635		$	240,471
Average loans held for investment	$	454,474		$	422,820		$	350,852
Nonperforming loans to total loans held for investment		7.8	%		7.1	%		7.3	%
Net charge offs to average loans held for investment (annualized)		2.8	%		2.3	%		3.8	%
Allowance for credit losses to loans held for investment		2.8	%		2.9	%		3.5	%
Allowance for credit losses to loans held for investment less guaranteed balances		4.3	%		4.6	%		5.4	%

(1) Excludes the provision for unfunded commitments.

Webcast and Conference Call Information
FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the fourth quarter and year ended December 31, 2024. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13750402. Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

Website Information
The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payments solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Its Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

Contacts
investors@finwisebank.com
media@finwisebank.com

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology industry, as well as the continued evolution of the regulation of this industry; (b) the ability of the Company’s Strategic Program or Fintech Banking and Payments Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Strategic Program and Fintech Banking and Payments Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) new lines of business or new products and services; (p) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest-rate and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) results of examinations of the Company by its regulators; (dd) the Company’s involvement from time to time in legal proceedings; (ee) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (ff) future equity and debt issuances; (gg) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; and (hh) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent reports on Form 10-Q and Form 8-K.

The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.

Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.

FINWISE BANCORP CONSOLIDATED BALANCE SHEETS ($ in thousands; Unaudited)

	12/31/2024		9/30/2024		12/31/2023
ASSETS
Cash and cash equivalents
Cash and due from banks	$	9,600	$	7,705	$	411
Interest-bearing deposits		99,562		78,063		116,564
Total cash and cash equivalents		109,162		85,768		116,975
Investment securities available-for-sale, at fair value		29,930		30,472		—
Investment securities held-to-maturity, at cost		12,565		13,270		15,388
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost		349		349		238
Strategic Program loans held-for-sale, at lower of cost or fair value		91,588		84,000		47,514
Loans held for investment, net		447,812		418,065		358,560
Credit enhancement asset		111		86		—
Premises and equipment, net		16,328		17,099		14,630
Accrued interest receivable		3,566		3,098		3,573
SBA servicing asset, net		3,273		3,261		4,231
Investment in Business Funding Group (“BFG”), at fair value		7,700		7,900		4,200
Operating lease right-of-use (“ROU”) assets		3,564		3,735		4,293
Income tax receivable, net		8,868		3,317		2,400
Other assets		11,160		12,611		14,219
Total assets	$	745,976	$	683,031	$	586,221

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest-bearing	$	126,782	$	142,785	$	95,486
Interest-bearing		418,170		345,874		309,347
Total deposits		544,952		488,659		404,833
Accrued interest payable		1,494		647		619
Income taxes payable, net		4,423		—		1,873
Deferred taxes, net		899		1,036		748
PPP Liquidity Facility		64		106		190
Operating lease liabilities		5,302		5,542		6,296
Other liabilities		15,122		16,671		16,606
Total liabilities		572,256		512,661		431,165

Shareholders’ equity
Common stock		13		13		12
Additional paid-in-capital		56,926		56,214		51,200
Retained earnings		116,594		113,801		103,844
Accumulated other comprehensive income, net of tax		187		342		—
Total shareholders’ equity		173,720		170,370		155,056
Total liabilities and shareholders’ equity	$	745,976	$	683,031	$	586,221

FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited)

	Three Months Ended
	12/31/2024			9/30/2024			12/31/2023
Interest income
Interest and fees on loans	$	18,388		$	17,590		$	16,192
Interest on securities		401			298			101
Other interest income		573			1,036			1,759
Total interest income		19,362			18,924			18,052

Interest expense
Interest on deposits		3,833			4,161			3,685
Total interest expense		3,833			4,161			3,685
Net interest income		15,529			14,763			14,367

Provision for credit losses		3,878			2,157			3,210
Net interest income after provision for credit losses		11,651			12,606			11,157

Non-interest income
Strategic Program fees		4,899			4,862			4,229
Gain on sale of loans, net		872			393			440
SBA loan servicing fees, net		181			87			572
Change in fair value on investment in BFG		(200	)		(100	)		200
Credit enhancement income		25			47			—
Other miscellaneous (loss) income		(174	)		765			716
Total non-interest income		5,603			6,054			6,157

Non-interest expense
Salaries and employee benefits		9,375			9,659			7,396
Professional services		556			1,331			1,433
Occupancy and equipment expenses		1,094			1,046			923
Credit enhancement expense		5			3			—
Other operating expenses		2,534			2,010			1,751
Total non-interest expense		13,564			14,049			11,503
Income before income taxes		3,690			4,611			5,811

Provision for income taxes		897			1,157			1,655
Net income	$	2,793		$	3,454		$	4,156

Earnings per share, basic	$	0.21		$	0.26		$	0.33
Earnings per share, diluted	$	0.20		$	0.25		$	0.32

Weighted average shares outstanding, basic		12,659,986			12,658,557			12,261,101
Weighted average shares outstanding, diluted		13,392,411			13,257,835			12,752,051
Shares outstanding at end of period		13,211,640			13,211,160			12,493,565

FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts)

	Years Ended
	12/31/2024			12/31/2023
	(Unaudited)
Interest income
Interest and fees on loans	$	68,892		$	58,445
Interest on securities		897			338
Other interest income		4,563			5,751
Total interest income		74,352			64,534

Interest expense
Interest on deposits		15,440			9,974
Other interest expense		—			1
Total interest expense		15,440			9,975
Net interest income		58,912			54,559

Provision for credit losses		11,573			11,638
Net interest income after provision for credit losses		47,339			42,921

Non-interest income
Strategic Program fees		17,762			15,914
Gain on sale of loans, net		2,036			1,684
SBA loan servicing fees, net		1,137			1,842
Change in fair value on investment in BFG		(624	)		(600	)
Credit enhancement income		111			—
Other miscellaneous income		2,063			2,616
Total non-interest income		22,485			21,456

Non-interest expense
Salaries and employee benefits		35,205			25,751
Professional services		4,736			4,961
Occupancy and equipment expenses		4,240			3,312
Credit enhancement expense		8			—
Other operating expenses		8,646			6,540
Total non-interest expense		52,835			40,564
Income before income taxes		16,989			23,813

Provision for income taxes		4,247			6,353
Net income	$	12,742		$	17,460

Earnings per share, basic	$	0.98		$	1.38
Earnings per share, diluted	$	0.93		$	1.33

Weighted average shares outstanding, basic		12,612,455			12,488,564
Weighted average shares outstanding, diluted		13,228,869			12,909,648
Shares outstanding at end of period		13,211,640			12,493,565

FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Three Months Ended
	12/31/2024							9/30/2024							12/31/2023
	Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate
Interest earning assets:
Interest-bearing deposits	$	52,375	$	573		4.35	%	$	78,967	$	1,036		5.22	%	$	125,462	$	1,759		5.56	%
Investment securities		43,212		401		3.69	%		33,615		298		3.53	%		15,670		101		2.56	%
Strategic Program loans held-for-sale		67,676		5,040		29.63	%		70,123		4,913		27.87	%		45,370		4,307		37.66	%
Loans held for investment		454,474		13,348		11.68	%		422,820		12,677		11.93	%		350,852		11,885		13.44	%
Total interest earning assets		617,737		19,362		12.47	%		605,525		18,924		12.43	%		537,354		18,052		13.33	%
Noninterest-earning assets		55,767							56,290							32,202
Total assets	$	673,504						$	661,815						$	569,556
Interest-bearing liabilities:
Demand	$	57,305	$	617		4.28	%	$	55,562	$	547		3.92	%	$	47,784	$	562		4.67	%
Savings		9,192		9		0.40	%		9,538		18		0.76	%		8,096		13		0.65	%
Money market accounts		15,726		147		3.73	%		13,590		127		3.72	%		13,419		53		1.55	%
Certificates of deposit		272,799		3,060		4.46	%		262,537		3,469		5.26	%		234,088		3,057		5.18	%
Total deposits		355,022		3,833		4.30	%		341,227		4,161		4.85	%		303,387		3,685		4.82	%
Other borrowings		79		—		0.35	%		112		—		0.35	%		206		—		0.35	%
Total interest-bearing liabilities		355,101		3,833		4.29	%		341,339		4,161		4.85	%		303,593		3,685		4.82	%
Noninterest-bearing deposits		119,945							127,561							92,767
Noninterest-bearing liabilities		27,636							25,536							21,099
Shareholders’ equity		170,823							167,379							152,097
Total liabilities and shareholders’ equity	$	673,505						$	661,815						$	569,556
Net interest income and interest rate spread			$	15,529		8.18	%			$	14,763		7.58	%			$	14,367		8.51	%
Net interest margin						10.00	%						9.70	%						10.61	%
Ratio of average interest-earning assets to average interest- bearing liabilities						173.96	%						177.40	%						177.00	%

FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Years Ended
	12/31/2024							12/31/2023
	Average Balance		Interest		Average Yield/Rate			Average Balance		Interest		Average Yield/Rate
Interest earning assets:
Interest-bearing deposits	$	87,086	$	4,563		5.24	%	$	110,866	$	5,751		5.19	%
Investment securities		26,691		897		3.36	%		14,731		338		2.30	%
Loans held for sale		58,896		17,698		30.05	%		39,090		15,051		38.50	%
Loans held for investment		417,207		51,194		12.27	%		303,784		43,394		14.28	%
Total interest earning assets		589,880		74,352		12.60	%		468,472		64,534		13.78	%
Noninterest-earning assets		47,598							25,269
Total assets	$	637,478						$	493,740
Interest-bearing liabilities:
Demand	$	59,317	$	2,108		3.55	%	$	45,454	$	1,856		4.08	%
Savings		9,574		66		0.69	%		8,207		51		0.62	%
Money market accounts		12,284		452		3.68	%		13,665		362		2.65	%
Certificates of deposit		256,575		12,814		4.99	%		168,887		7,705		4.56	%
Total deposits		337,750		15,440		4.57	%		236,213		9,974		4.22	%
Other borrowings		126		—		0.34	%		251		1		0.35	%
Total interest-bearing liabilities		337,876		15,440		4.57	%		236,464		9,975		4.22	%
Noninterest-bearing deposits		107,760							93,126
Noninterest-bearing liabilities		26,634							17,250
Shareholders’ equity		165,208							146,901
Total liabilities and shareholders’ equity	$	637,478						$	493,740
Net interest income and interest rate spread			$	58,912		8.03	%			$	54,559		9.56	%
Net interest margin						9.99	%						11.65	%
Ratio of average interest-earning assets to average interest- bearing liabilities						174.58	%						198.12	%

Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited)

Efficiency ratio	Three Months Ended									Years Ended
	12/31/2024			9/30/2024			12/31/2023			12/31/2024				12/31/2023
($ in thousands)
Non-interest expense	$	13,564		$	14,049		$	11,503		$	52,835		$	40,564

Net interest income		15,529			14,763			14,367			58,912			54,559
Total non-interest income		5,603			6,054			6,157			22,485			21,456
Adjusted operating revenue	$	21,132		$	20,817		$	20,524		$	81,397		$	76,015
Efficiency ratio		64.2	%		67.5	%		56.0	%		64.9	%		53.4	%

FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement . When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans HFI and average yield on loans HFI:

	As of and for the Three Months Ended								As of and for the Year Ended
($ in thousands; unaudited)	12/31/2024								12/31/2024
	Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI			Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI
Before adjustment for credit enhancement	$	454,474	$	13,348			11.68	%	$	417,207	$	51,194			12.27	%
Less: credit enhancement expense				(5	)							(8	)
Net of adjustment for credit enhancement expenses	$	454,474	$	13,343			11.68	%	$	417,207	$	51,186			12.27	%

Total interest income on loans HFI net of credit enhancement expense and the average yield on loans HFI are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans HFI and the respective average yield on loans HFI, the most directly comparable GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:

	As of and for the Three Months Ended								As of and for the Year Ended
	12/31/2024								12/31/2024
($ in thousands; unaudited)	Total Average Interest- Earning Assets		Net Interest Income			Net Interest Margin			Total Average Interest- Earning Assets		Net Interest Income			Net Interest Margin
Before adjustment for credit enhancement	$	617,737	$	15,529			10.00	%	$	589,880	$	58,912			9.99	%
Less: credit enhancement expense				(5	)							(8	)
Net of adjustment for credit enhancement expenses	$	617,737	$	15,524			10.00	%	$	589,880	$	58,904			9.99	%

Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:


($ in thousands; unaudited)	Three Months Ended December 31, 2024			Year Ended December 31, 2024
Total non-interest expense	$	13,564		$	52,835
Less: credit enhancement expense		(5	)		(8	)
Total non-interest expense less credit enhancement expenses	$	13,559		$	52,827

Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.

Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:


($ in thousands; unaudited)	Three Months Ended December 31, 2024			Year Ended December 31, 2024
Total non-interest income	$	5,603		$	22,485
Less: credit enhancement income		(25	)		(111	)
Total non-interest income less credit enhancement income	$	5,578		$	22,374

Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:


($ in thousands; unaudited)	As of December 31, 2024
Allowance for credit losses	$	(13,176	)
Less: allowance for credit losses related to credit enhanced loans		(111	)
Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans	$	(13,065	)

The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held for investment with credit enhancement as of December 31, 2024 was approximately $0.9 million.

The MIL Network –

January 31, 2025

MIL-OSI USA: Markey, Pressley Bill Renaming Post Office on Dorchester Ave Signed into Law Last Month by President Biden

US Senate News:

Source: United States Senator for Massachusetts Ed Markey
Washington (January, 29, 2025) – Today, Senator Edward J. Markey (D-Mass.) and Congresswoman Ayanna Pressley (MA-07) marked the Lunar New Year by celebrating the enactment of their legislation to name the U.S. Postal Service office on Dorchester Avenue in Boston after the late Caroline Chang (1940-2018), a community leader and lifelong AAPI activist in Boston’s Chinatown community. The bill passed the House in February of last year and was signed into law by President Biden in November.
“I am proud that our legislation to honor community leader, public servant, and activist Caroline Chang is law,” said Senator Markey. “Caroline Chang played an instrumental role in Boston’s Asian American community and her decades of public service to her community will now finally be physically memorialized.”
“Who we honor in our federal buildings and monuments matters, and I am so thrilled that Caroline Chang is getting the recognition she deserves for her lifelong service to Boston, the Massachusetts 7th, and our Commonwealth,” said Congresswoman Pressley. “I was especially honored to celebrate the Lunar New Year with Caroline’s family and celebrate the enactment of this bill, the very first federal building in the Commonwealth to be named in honor of an AAPI individual. This is a living tribute to her life, values, and incredible impact she’s had on Boston’s Chinatown community and beyond. I’m grateful to Caroline’s family, our community partners, our Senate colleagues, and President Biden for working with us to get this bill over the finish line.”
“Caroline dedicated her life to ensure all people were treated equally and fairly. Born to an immigrant family, Caroline spoke for those who couldn’t speak for themselves. She saw firsthand, discrimination towards her community and did something about it. She recognized the deficiencies in health care in minority neighborhoods, and did something about it. She recognized shortages in affordable housing, and did something about it. Her career and achievements will forever be remembered through the dedication of this post office in her name,” said Russell Eng, Caroline Chang’s nephew. “Our family is proud of Caroline’s work, and are very grateful to Congresswoman Pressley, her incredible staff, the Massachusetts delegation to Congress and the Senate, President Biden for signing this law, and especially the Asian Community of Massachusetts for nominating her.
“The Asian American community is forever great full for the work of Caroline Chang in uplifting the needs and rights of the Chinese Immigrant community. She is a pioneer in our community to fight for equal access to government resources for the public good. Many of our non profit community organizations such as South Cove Health Center, Asian American Civil Association, Asian American Community Development Corporation and Chinese Historical Society are the fruit of Caroline’s work,” said Suzanne Lee, Founder of Chinese Progressive Association. “We are excited to have the Post Office named in honor of her. There’s no better representation of public service than Caroline Chang.”
There are currently 617 postal facilities in Massachusetts. Of those facilities renamed, only one honors a woman and five honor a person of color. With the enactment of this bill, the USPS office at 25 Dorchester Avenue is now the first federal building in Massachusetts to be named after an AAPI individual.
Caroline Chang spent her life serving the Boston Chinatown community. Born and raised in Chinatown, Caroline served as an interpreter in her early life for community members seeking medical care. In 1970, Boston Mayor Kevin White appointed Chang as the manager of Chinatown’s Little City Hall, where she advocated on behalf of residents. Chang went on to receive her law degree from Suffolk Law School in 1970 and spent more than 30 years with the United States Department of Health and Human Services as the Regional Manager for the Office for Civil Rights, making her the highest-ranking Asian American in the federal government in New England at the time.
Throughout her years of public service, Caroline Chang played a founding role in several organizations that continue to serve the Boston Chinatown community, including:
The South Cove Community Health Center
The Asian Community Development Corporation (ACDC)
The Chinese Historical Society of New England (CHSNE)
The Harry H. Dow Memorial Legal Assistance Fund
The Asian American Civic Association (AACA)
The Greater Boston Chinese Golden Age Center
A copy of the bill text can be found here, and Caroline’s biography is available here.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Welch Speaks on the Senate Floor About the Ceasefire in Gaza

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) last night took to the Senate floor to express his relief by the announcement of a ceasefire in Gaza and stress the importance of creating a viable, secure, independent, and demilitarized Palestinian state.
Senator Welch emphasized that there is no solution that offers lasting peace, and continued U.S. support, other than two independent states.
Watch Senator Welch’s speech below:
Senator Welch’s remarks, as delivered, can be read here and below:
“Like all of us I was enormously relieved by the announcement of a ceasefire in Gaza, the gradual release of hostages, and a surge in humanitarian aid for the two million desperate Palestinians who are trapped inside Gaza.
“Despite the daunting challenges ahead and the many factors that could derail negotiations to implement Stage Two of the agreement, I’m cautiously hopeful that this could be the beginning of the end of a war that has traumatized millions of Palestinians and Israelis for more than 16 months.
“There will come a time for the accounting of the conduct of the war, which has caused such appalling loss of Palestinian and Israeli lives, including tens of thousands of children, of health workers, aid workers, and journalists, and massive destruction of property, including practically every hospital, every school, and university in Gaza. These things must not be forgotten, and that means investigating and holding people accountable under the laws of war.
“But today, I want to speak briefly on an issue that is key to the lasting peace between Palestinians and Israelis that we seek. And that is the creation of a viable, secure, independent, and demilitarized Palestinian state.
“The war in Gaza was triggered, of course, by the merciless slaughter on October 7, 2023, of 1,200 innocent Israelis, Americans and others, and the abduction of some 250 hostages, many of whom have died. But as we all know, the Middle East conflict began many decades earlier. And some would say centuries ago. Ethnic hatred and religious intolerance passed down from one generation to the next have fueled seemingly endless violence perpetrated by extremists on both sides. And it’s created a chronic state of insecurity for Israelis, and insecurity and humiliation, poverty, and hopelessness for Palestinians.
“In the West Bank, Israel’s ever-expanding settlement construction—in violation of UN resolutions and contrary to U.S. policy—has created a patchwork of separate and unequal enclaves and illegal outposts, provoking frequent acts of deadly violence by Israeli settlers and also by Palestinian extremists.
“Gaza, with the overt support of the Netanyahu government, became an open-air prison for two million impoverished Palestinians dependent on international aid and under the ruthless control of Hamas.
“And throughout this period, the wealthy Arab states have called for a Palestinian state. But they have expended minimal political capital or resources in furtherance of that goal. A lot of talk, very little action.
“Successive Palestinian leaders have squandered opportunities to make necessary political and economic reforms, while Mr. Netanyahu has worked to create conditions on the ground that would actually make a Palestinian state impossible.
“Despite this grim reality—and it is a grim reality—the attention focused on the remarkable life of President Jimmy Carter after his death on December 29th, reminded us that even in the most difficult circumstances peace is possible between long-standing enemies. It happened. But that possibility depends on the quality of leadership.
“If there ever were a time when the leaders of Israel, the Palestinian Authority, their Arab neighbors, and the United States should put the interests of regional peace and economic cooperation and development, including an independent Palestinian state, over personal and political ambition—it is now. It is now.
“Gaza is in ruins. Hamas and Hezbollah—still a threat—pose less of a threat than at any time in recent history. The horrific Assad regime is gone. Iran is also weaker. Most Israelis, Palestinians, Lebanese, Syrians want peace. But given the absence of visionary and courageous leaders in Israel and the Palestinian Authority, the possibility that a path to a Palestinian state will emerge really does depend on the Trump Administration using its diplomatic influence far more forcefully and effectively than previous U.S. administrations—including the first Trump Administration—were willing to do.
“We’ve got to act. And it will require the same of Congress, which in the past has restricted itself to enacting tighter and tighter sanctions on the Palestinians causing increasing desperation and resentment for innocent Palestinians, while at the same time, opposing any incentives on Israel to stop settlement construction and settler violence.
“There are those who believe that because of Israel’s construction of settlements, walls, fences, separate highways, factories, and farms in the West Bank, that the West Bank and Gaza can never be reconfigured into a viable Palestinian state. Having seen a current map of the West Bank, I can certainly understand that.
“But others reject the very idea of a Palestinian state as incompatible with Israel’s security, without proposing any alternative that would preserve Israel as a democracy in which all its citizens, regardless of ethnicity; religion, have equal rights. Given Hamas’ horrific attack on October 7th, I can also easily understand that.
“Then, on January 25th, President Trump called for “cleaning out” of Gaza, suggesting that a million and half Palestinians should be resettled in Jordan and Egypt. And you know, seriously, there’s just so many things wrong and unrealistic with that reprehensible and unworkable idea that it barely deserves a response, beyond the predictable and immediate repudiation by all those who would be impacted. It’s not serious.
“But to me, as elusive as it may seem, there really is no solution that offers lasting peace, and continued U.S. support, other than two independent states—Israel and Palestine, side-by-side. A Palestinian state will only be possible if both sides are pressured to make the difficult compromises both sides they so far refused to make. And only the United States and our heretofore reluctant Arab allies can exert the kind of pressure that’s necessary to bring people to an agreement.
“Mr. President, there have been far too many missed opportunities and disappointments since the Oslo and Camp David Accords, and far too much needless death and destruction resulting from the unchecked ambitions of leaders motivated by their worst instincts. History will judge us whether we seize this moment to finally chart a different course. A course that does enable Israelis and Palestinians to finally accept that there is no turning back the clock, that both are there to stay, and that as many Palestinian and Israeli neighbors have shown throughout years of conflict and loss, they have far more in common than their differences.
“Mr. President, I yield back.”

MIL OSI USA News –

January 31, 2025

MIL-OSI Submissions: OPEC Fund and Mauritania strengthen cooperation with US$120 million-partnership agreement

Source: The OPEC Fund for International Development

January 30, 2025: The OPEC Fund for International Development (OPEC Fund) and the Islamic Republic of Mauritania have signed a landmark Country Partnership Framework Agreement to cooperate on key development initiatives during the period 2025-2027, earmarking US$120 million in new development financing focusing on the country’s development priorities.

The funding will finance critical projects that contribute to projects promoting renewable energy, clean water, food security, improved transport and clean cooking. In addition the OPEC Fund is pledging to provide up to US$500,000 in grants for capacity-building, project preparation and technical assistance.

OPEC Fund President Abdulhamid Alkhalifa said during a visit to the capital Nouakchott: “We are proud to help improve the lives of people and communities for a more resilient future.

Our commitment to Mauritania is focused on bolstering key sectors of the economy. Technical assistance and strong project preparation are vital to mobilize additional development funding, enable public-private partnerships (PPPs) and attract private sector investment.”

An OPEC Fund delegation led by President Alkhalifa is visiting Mauritania from January 30-31, 2025. The delegation expects to meet Mauritanian President Mohamed Ould Ghazouani, Prime Minister El Moctar Ould Djay, Minister of Economy and Finance Sid’Ahmed Ould Bouh and other government officials to discuss implementation of the Country Partnership Framework Agreement and explore opportunities for further cooperation.

The OPEC Fund’s financing will support key projects that align with the country’s objectives of advancing clean energy, food security, water & sanitation while supporting sustainable and inclusive development and strengthening infrastructure for women and youth in particular. Joint initiatives also aim to strengthen Mauritania’s PPP regulatory framework and boost private sector investment.

The Country Partnership Framework Agreement underscores the longstanding relationship between the OPEC Fund and Mauritania, with more than US$250 million in loans provided to the country for various infrastructure and development projects to date.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively.

The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world.

The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education.

To date, the OPEC Fund has committed more than US$29 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.

MIL OSI – Submitted News –

January 31, 2025

MIL-OSI New Zealand: Miners celebrate support for economic growth – Straterra

Source: Straterra Inc

Miners are celebrating the Government’s support for growing mining’s contribution to the economy with the release of a minerals strategy and critical minerals list today, says Straterra chief executive Josie Vidal.

“The Government is listening, so this is a good day – not just for miners, but also all the businesses that make mining possible, including those producing mining equipment, technology, and services,” Vidal says. “They provide jobs and contribute to the economy. We have been asking for some years for buy-in from the Government to support mining growth that benefits workers in New Zealand, and their communities.

“It is great to see facts, evidence, and science being used in decision making to further develop mining. Let’s be clear, that is not at the expense of the environment and there won’t be a mine on every corner.

“The strategy has been developed through consultation and it is important it has a clear vision. We need this to put a marker in the ground for global markets indicating that we can be part of the minerals supply chain. Minerals are needed for energy, technology, medicine, transport, infrastructure, communications, and food production.

“Identifying critical minerals helps with this. New Zealand has its own unique path and that includes acknowledgement that some of what is already mined here is critical to our economy. So, the list released today rightly includes gold and metallurgical coal.

“While thermal coal not on the list, it does not mean it is not critical, and the strategy acknowledges the role thermal coal plays in keeping the lights on and businesses running. Coal is critical to national energy security and users of coal energy face a supply risk if domestic miners are forced to exit the market before affordable alternative fuel sources are readily available.

“Productivity is at the heart of the strategy and mining is one of the most productive sectors in New Zealand, which translates into high wages.

“The strategy recognises the value of responsible mining and New Zealand can be proud our strict employment and health and safety laws and stringent environmental regulations that back that.

“What has been missing is an enabling business environment. The Fast-track Approvals Act is a game changer and there is interest in it from law makers around the globe.

“We also need investment and with that, basics such as banking and insurance. While on the investment front there is plenty of interest in New Zealand mining, is disappointing to see debanking of coal mining in New Zealand due to arbitrary moral judgements. If banks start making ‘moral’ judgements, where does that end? I fail to see how banks can refuse to do business with legal and legitimate business entities.

“We must not go backwards now on political whims. The foundations are starting to form to enable the mining sector to double the value of exports and contribute to economic growth, jobs, and regional development and to do what benefits New Zealanders.”

Straterra is the industry association representing New Zealand’s minerals and mining sector.

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI New Zealand: Housing Market – Housing market close to a trough – CoreLogic

Source: CoreLogic

Property values in Aotearoa New Zealand edged -0.1% lower in January, marking the fifth month in a row with limited movement.

The CoreLogic Home Value Index (HVI) shows that after a cumulative decline of -4.1% over the six months from March to August, there has only been a further combined fall of -0.4% since then – a potential sign that a rebound in prices could be taking shape.

The national median value now stands at $803,819, which is -17.5% below the record highs from late 2021/early 2022, but still 16.3% above the pre-COVID level from March 2020.

Around the main centres, it was a broadly flat month in January, with Tauranga and Ōtepoti Dunedin both seeing growth of +0.1%, and Tāmaki Makaurau Auckland and Ōtautahi Christchurch at -0.1%. Kirikiriroa Hamilton stood out, growing +0.5%, while Te Whanganui-a-Tara Wellington remained soft (-0.6%).

CoreLogic NZ Chief Property Economist, Kelvin Davidson said the recent stability in property values at the national level could be a sign of future growth potential.
“Since the ‘mini downturn’ seen through the middle part of last year petered out in August, national property values have been in a holding pattern – not moving clearly in either direction,” he said.

“But with mortgage rates having dropped significantly from their peaks, property sales volumes have continued to rise in recent months and may well start to reduce the available stock of listings on the market in the near term.”

“That would create more competitive pressure amongst buyers, and it wouldn’t be a surprise to see property values start to rise again shortly.”

He noted some caution was still warranted.

“After all, not all areas have stopped falling, including Wellington. Given that the economy remains soft and the labour market subdued, it is unlikely we will see a sharp upturn in values.”

He also noted debt to income ratio caps will also play a role in dampening the market in 2025.

Index results for January 2025 – national and main centres

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Aotearoa New Zealand

-0.1%

-0.3%

-4.3%

-17.5%

-4.5%

16.3%

$803,819

Tāmaki Makaurau Auckland

-0.1%

-0.3%

-6.5%

-22.1%

-6.5%

8.5%

$1,069,140

Kirikiriroa Hamilton

0.5%

1.6%

-1.6%

-12.0%

-1.7%

20.0%

$748,944

Tauranga

0.1%

0.5%

-3.6%

-17.1%

-3.8%

21.1%

$904,920

Te-Whanganui-a-Tara Wellington*

-0.6%

-1.7%

-7.4%

-25.1%

-8.5%

4.8%

$790,007

Ōtautahi Christchurch

-0.1%

-0.1%

0.0%

-6.8%

-1.1%

41.0%

$661,721

Ōtepoti Dunedin

0.1%

0.1%

0.9%

-10.8%

-1.2%

11.1%

$611,677

Tāmaki Makaurau Auckland

Tamaki Makaurau Auckland’s sub-markets were a mixed bag in January, with North Shore recording a 0.3% rise, and Waitakere and Manukau flat (with Auckland City only down slightly, by -0.1%). However, in the more outlying areas the value patterns were weaker, with falls of between -0.3% and -0.5% in Papakura, Franklin, and Rodney.

Over a slightly longer three-month horizon, there have been signs of growth in North Shore and Waitakere (0.8% and 0.7% respectively), although other parts of Auckland have remained more subdued.
Mr Davidson commented: “It would appear that the downwards momentum across many parts of Auckland is slowing, and North Shore certainly looks to be a market worth keeping an eye on as a possible guide to where the rest of the city goes in the next few months.”

“Even so, with buyers still having plenty of choice, not least because of the pipeline of new property still being completed in Auckland, it’s difficult to see a broad-based upturn kicking off anytime soon.”

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Rodney

-0.5%

-1.8%

-7.0%

-21.5%

-7.1%

14.3%

$1,216,586

Te Raki Paewhenua North Shore

0.3%

0.8%

-3.6%

-18.0%

-3.6%

10.1%

$1,291,965

Waitakere

0.0%

0.7%

-5.1%

-23.8%

-5.1%

7.4%

$942,671

Auckland City

-0.1%

-0.8%

-8.1%

-23.1%

-8.1%

4.1%

$1,131,326

Manukau

0.0%

0.0%

-6.4%

-22.9%

-6.4%

12.1%

$1,014,115

Papakura

-0.4%

-0.9%

-7.2%

-23.4%

-7.5%

12.6%

$815,455

Franklin

-0.3%

-0.5%

-5.8%

-22.7%

-5.8%

16.3%

$900,200

Te Whanganui-a-Tara Wellington

The wider Te Whanganui-a-Tara Wellington area still stands out in terms of lingering property value weakness. Indeed, values dipped across the board in January, ranging from fairly modest declines in Kapiti Coast and Porirua, up to drops of 0.6% in Lower Hutt and 0.7% in Wellington City itself.

As Mr Davidson noted: “Parts of the Wellington area may be showing signs of optimism, or at least less pessimism.”

“But the latest data still shows that values in and around the Capital are generally facing continued downwards pressure, linked to the elevated level of listings available on the market, and presumably also the underlying concerns about public sector employment.”

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Kāpiti Coast

-0.1%

0.0%

-4.5%

-21.9%

-6.7%

13.5%

$808,515

Porirua

-0.2%

0.2%

-3.7%

-22.4%

-4.7%

11.0%

$752,261

Te Awa Kairangi ki Uta Upper Hutt

-0.4%

-1.4%

-6.1%

-24.2%

-6.9%

7.1%

$708,418

Te Awa Kairangi ki Tai Lower Hutt

-0.6%

-1.8%

-6.7%

-26.3%

-8.1%

6.7%

$670,538

Wellington City

-0.7%

-2.1%

-8.6%

-25.3%

-9.8%

2.4%

$886,088

Regional results

The early signs of some modest gains in property values that had started to become evident around regional areas in November and December have continued into January. That being said, Gisborne did drop by -0.5%, and Palmerston North and Invercargill also edged lower in January. But seven of the other eight markets covered in this section were either flat or rose by up to 0.3%, with New Plymouth showing a more robust 0.9% increase.

“It remains early in the process, but there are signs in a number of provincial areas that lower mortgage rates have brought the falls in property values to an end, and some modest growth might even have restarted in certain markets,” Mr Davidson said.

“Again, there’s cause for caution about how strong or sudden an upturn in property values might be in 2025, especially with the unemployment rate still rising. But the first signs of growth nevertheless seem to be emerging.”

Month

Quarter

Annual

From post-COVID peak

From 2024 mini peak

From pre-COVID levels

Median value

Ahuriri Napier

0.2%

1.3%

-3.6%

-19.1%

-3.6%

14.5%

$689,554

Te Papaioea Palmerston North

-0.2%

-0.7%

-3.4%

-19.0%

-3.8%

15.1%

$601,785

Heretaunga Hastings

0.1%

-0.6%

-4.9%

-18.9%

-4.9%

22.0%

$690,337

Whangārei

0.3%

-0.2%

-5.8%

-20.8%

-5.8%

12.8%

$719,145

Whanganui

0.1%

-0.2%

2.5%

-13.3%

-1.7%

28.8%

$486,074

Rotorua

0.0%

-0.1%

-0.4%

-13.5%

-1.5%

22.5%

$608,130

Tūranganui-a-Kiwa Gisborne

-0.5%

-1.6%

-7.8%

-17.9%

-8.5%

23.7%

$581,918

Whakatū Nelson

0.1%

-0.3%

1.7%

-11.7%

-0.3%

15.6%

$742,790

Ngāmotu New Plymouth

0.9%

0.9%

0.6%

-1.0%

-1.0%

48.1%

$703,040

Waihōpai Invercargill

-0.2%

-0.5%

2.5%

-2.8%

-0.5%

27.7%

$468,161

Tāhuna Queenstown

0.1%

0.4%

2.4%

-5.1%

-0.7%

31.5%

$1,631,244

Property market outlook

Looking ahead, Mr Davidson noted that the continued slowdown in net migration continues to dampen overall population growth and marginal demand for property, especially in the rental sector.
He said that would likely weigh on investor sentiment in the near term.

“Even so, the tax rules have become more favourable for mortgaged investors again, and of course lower interest rates are shrinking the top-ups from other income that are typically required to sustain rental property cashflows. Some extra demand from investors this year is firmly on the cards, although the debt to income ratio rules will be something this group may have to weigh up too.”

“Other buyer groups will also tend to target property in a lower mortgage rate environment, and certainly conditions remain favourable for first home buyers too. A more liquid and faster-moving market may also help existing owner-occupiers to get their house sold and allow them to press ahead with the next purchase.”

“All in all, 2025 looks set to be a stronger year for the property market than 2024, but the slowly emerging growth in values in some areas is not universal yet, and the upturn this year could well be more muted than in the past,” he concluded.

For more property news and insights, visit www.corelogic.co.nz/news-research.

Notes:

The CoreLogic Hedonic Home Value Index (HVI) is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling. By separating each property into its various formational and locational attributes, observed sales values for each property can be distinguished between those attributed to the property’s attributes and those resulting from changes in the underlying residential property market. Additionally, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the entire residential property stock can be accurately tracked through time.

The detailed ‘frequently asked questions’ and methodological information can be found at: https://www.corelogic.co.nz/our-data/hedonic-index

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI New Zealand: First Responders – Tiwai Peninsula vegetation fire update #2

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand crews are back on Tiwai Peninsula in Invercargill today, where the large vegetation fire has not grown further overnight.

The fire grew to 1,200 hectares yesterday in hot, windy conditions but was contained by the end of the day.

Incident Controller Hamish Angus says there will be 35 firefighters on site today, with support from five helicopters, the Department of Conservation and local forestry companies.

“Our focus today is on knocking out those remaining hotspots,” he says.

“We’re expecting winds to pick up over the next few days, so we want to make sure there’s nothing left here that could get the fire under way again.

“It’s too early to say what caused the fire, but we will have fire investigators here today looking into that.”

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI New Zealand: Fire Safety – Fire restrictions eased in parts of Mid-South Canterbury

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand has revoked the restrictions on lighting outdoor fires in the lower-lying areas of Mid-South Canterbury from 8am on Friday 31 January.

Mid-South Canterbury District Manager Rob Hands says that as fire danger has eased in these areas after recent rainfall, they are now back in an open fire season until further notice.

In a restricted fire season, people need a permit from Fire and Emergency to light an outdoor fire.

In an open season, permits are not needed, but people are asked to take reasonable precautions when lighting fires.

“As well as the rain we’ve now had, the outlook for the next few weeks is cooler and damper, which means there’s less chance of a wildfire starting and spreading through vegetation,” Rob Hands says.

The areas in Mid-South Canterbury which have moved to an open fire season include Cattle Creek, Waihaorunga, Waimate Coastal, Waimate, Timaru Coastal, Albury, Cannington, Clayton, Geraldine Plains, Mt Somers, Ashburton Plains, and Ashburton Coastal.

The Mackenzie Basin and high country – including Rangitata and Rakaia Gorges, and Ashburton Lakes – remain in a restricted fire season, as those areas continue to be affected by hot, dry conditions.

Rob Hands says people should not become careless with fires, just because the season has changed.

“While rain has reduced the fire risk in the low-lying areas, people must take care to prevent unwanted fires getting started,” he says.

“Even if you are in an open season, you should go to www.checkitsalright.nz to see if it’s safe to have an outdoor fire at your location.”

MIL OSI New Zealand News –

January 31, 2025

MIL-OSI: Credit Acceptance Announces Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Southfield, Michigan, Jan. 30, 2025 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $151.9 million, or $12.26 per diluted share, for the three months ended December 31, 2024 compared to consolidated net income of $93.6 million, or $7.29 per diluted share, for the same period in 2023. Adjusted net income, a non-GAAP financial measure, for the three months ended December 31, 2024 was $126.0 million, or $10.17 per diluted share, compared to $129.1 million, or $10.06 per diluted share, for the same period in 2023. The following table summarizes our financial results:

(In millions, except per share data)	For the Three Months Ended						For the Years Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
GAAP net income	$	151.9	$	78.8	$	93.6	$	247.9	$	286.1
GAAP net income per diluted share	$	12.26	$	6.35	$	7.29	$	19.88	$	21.99

Adjusted net income	$	126.0	$	109.1	$	129.1	$	478.9	$	535.6
Adjusted net income per diluted share	$	10.17	$	8.79	$	10.06	$	38.41	$	41.17

Our results for the fourth quarter of 2024 in comparison to the fourth quarter of 2023 included:

A smaller decline in forecasted collection rates
A decline in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $31.1 million, or 0.3%, compared to a decrease in forecasted collection rates during the fourth quarter of 2023 that decreased forecasted net cash flows from our loan portfolio by $57.0 million, or 0.6%.

A decrease in forecasted profitability for Consumer Loans assigned in 2021 through 2024
Forecasted profitability was lower than our estimates at December 31, 2023, due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the fourth quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.

Slower growth in Consumer Loan assignment unit volume and an increase in the average balance of our loan portfolio
Unit volume growth slowed significantly year-over-year, growing 0.3% as compared to 26.7% in the fourth quarter of 2023. The average balance of our loan portfolio, which is our largest-ever, increased 14.0% and 16.5% on a GAAP and adjusted basis, respectively, as compared to the fourth quarter of 2023.

An increase in the initial spread on Consumer Loan assignments
The initial spread increased to 22.4% compared to 21.7% on Consumer Loans assigned in the fourth quarter of 2023.

An increase in our average cost of debt
Our average cost of debt increased from 6.3% to 7.2%, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.

A decrease in common shares outstanding due to stock repurchases
Since the fourth quarter of 2023, we have repurchased approximately 590,000 shares, or 4.7% of the shares outstanding as of December 31, 2023.

Our results for the fourth quarter of 2024 in comparison to the third quarter of 2024 included:

A smaller decline in forecasted collection rates
A decline in forecasted collection rates decreased forecasted net cash flows from our loan portfolio by $31.1 million, or 0.3%, compared to a decrease in forecasted collection rates during the third quarter of 2024 that decreased forecasted net cash flows from our loan portfolio by $62.8 million, or 0.6%.

A decrease in forecasted profitability for Consumer Loans assigned in 2022
Forecasted profitability was lower than our estimates at September 30, 2024, due to the decline in forecasted collection rates.

Slower growth in Consumer Loan assignment unit volume and an increase in the average balance of our loan portfolio
Unit volume growth slowed significantly year-over-year, growing 0.3% as compared to 17.7% in the third quarter of 2024. The average balance of our loan portfolio, which is our largest-ever, increased 1.8% and 1.6% on a GAAP and adjusted basis, respectively, as compared to the third quarter of 2024.

An increase in the initial spread on Consumer Loan assignments
The initial spread increased to 22.4% compared to 21.9% on Consumer Loans assigned in the third quarter of 2024.

Consumer Loan Metrics

Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested.

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of December 31, 2024, with the aggregated forecasts as of September 30, 2024, as of December 31, 2023, and at the time of assignment, segmented by year of assignment:

	Forecasted Collection Percentage as of (1)								Current Forecast Variance from
Consumer Loan Assignment Year	December 31, 2024		September 30, 2024		December 31, 2023		Initial Forecast		September 30, 2024		December 31, 2023		Initial Forecast
2015	65.3	%	65.3	%	65.2	%	67.7	%	0.0	%	0.1	%	-2.4	%
2016	63.9	%	63.9	%	63.8	%	65.4	%	0.0	%	0.1	%	-1.5	%
2017	64.7	%	64.7	%	64.7	%	64.0	%	0.0	%	0.0	%	0.7	%
2018	65.5	%	65.5	%	65.5	%	63.6	%	0.0	%	0.0	%	1.9	%
2019	67.2	%	67.2	%	66.9	%	64.0	%	0.0	%	0.3	%	3.2	%
2020	67.7	%	67.6	%	67.6	%	63.4	%	0.1	%	0.1	%	4.3	%
2021	63.8	%	63.8	%	64.5	%	66.3	%	0.0	%	-0.7	%	-2.5	%
2022	60.2	%	60.6	%	62.7	%	67.5	%	-0.4	%	-2.5	%	-7.3	%
2023	64.3	%	64.3	%	67.4	%	67.5	%	0.0	%	-3.1	%	-3.2	%
2024 (2)	66.5	%	66.6	%	—		67.2	%	-0.1	%	—		-0.7	%

^{(1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}
^{(2) The forecasted collection rate for 2024 Consumer Loans as of December 31, 2024 includes both Consumer Loans that were in our portfolio as of September 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:}

	Forecasted Collection Percentage as of						Current Forecast Variance from
2024 Consumer Loan Assignment Period	December 31, 2024		September 30, 2024		Initial Forecast		September 30, 2024		Initial Forecast
January 1, 2024 through September 30, 2024	66.4	%	66.6	%	67.3	%	-0.2	%	-0.9	%
October 1, 2024 through December 31, 2024	66.8	%	—		66.9	%	—		-0.1	%

Consumer Loans assigned in 2018 through 2020 have yielded forecasted collection results significantly better than our initial estimates, while Consumer Loans assigned in 2015, 2016, and 2021 through 2023 have yielded forecasted collection results significantly worse than our initial estimates. For all other assignment years presented, actual results have been close to our initial estimates. For the three months ended December 31, 2024, forecasted collection rates declined for Consumer Loans assigned in 2022 and 2024 and were generally consistent with expectations at the start of the period for all other assignment years presented. For the year ended December 31, 2024, forecasted collection rates improved for Consumer Loans assigned in 2019, declined for Consumer Loans assigned in 2021 through 2024, and were generally consistent with expectations at the start of the period for all other assignment years presented.

The changes in forecasted collection rates for the three months and years ended December 31, 2024 and 2023 impacted forecasted net cash flows (forecasted collections less forecasted dealer holdback payments) as follows:

(Dollars in millions)	For the Three Months Ended December 31,						For the Years Ended December 31,
Increase (Decrease) in Forecasted Net Cash Flows		2024			2023			2024			2023
Dealer loans	$	(31.6)		$	(36.0)		$	(204.6)		$	(125.3)
Purchased loans		0.5			(21.0)			(109.4)			(81.0)
Total	$	(31.1)		$	(57.0)		$	(314.0)		$	(206.3)
% change from forecast at beginning of period		-0.3	%		-0.6	%		-3.1	%		-2.3	%

During the second quarter of 2024, we applied an adjustment to our methodology for forecasting the amount of future net cash flows from our loan portfolio, which reduced the forecasted collection rates for Consumer Loans assigned in 2022 through 2024. Consumer Loans assigned in 2022 had continued to underperform our expectations for several quarters. Consumer Loans assigned in 2023 had also begun exhibiting similar trends of underperformance, although not as severe as Consumer Loans assigned in 2022. During the second quarter of 2024, we determined that we had sufficient Consumer Loan performance experience to estimate the magnitude by which we expected Consumer Loans assigned in 2022 through 2024 would likely underperform our historical collection rates on Consumer Loans with similar characteristics. Accordingly, we applied an adjustment to Consumer Loans assigned in 2022 through 2024 to reduce forecasted collection rates to what we believed the ultimate collection rates would be based on these trends. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of this forecast adjustment during the second quarter of 2024 reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased provision for credit losses by $127.5 million.

During the second quarter of 2023, we adjusted our methodology for forecasting the amount and timing of future net cash flows from our loan portfolio through the utilization of more recent Consumer Loan performance and Consumer Loan prepayment data. We had experienced a decrease in Consumer Loan prepayments to below-average levels and as a result, slowed our forecasted net cash flow timing. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. Changes in the amount and timing of forecasted net cash flows are recognized in the period of change as a provision for credit losses. The implementation of the adjustment to our forecasting methodology during the second quarter of 2023 reduced forecasted net cash flows by $44.5 million, or 0.5%, and increased provision for credit losses by $71.3 million.

We have experienced increased levels of uncertainty associated with our estimate of the amount and timing of future net cash flows from our loan portfolio since the beginning of 2020, with realized collections underperforming our expectations during the early stages of the COVID-19 pandemic, outperforming our expectations following the distribution of federal stimulus payments and enhanced unemployment benefits, and underperforming our expectations during the current economic environment. The quarterly changes to our forecast of future net cash flows from our loan portfolio from January 1, 2020 through December 31, 2024 are shown in the following table:

(Dollars in millions)	Increase (Decrease) in Forecasted Net Cash Flows
Three Months Ended	Total Loans		% Change from Forecast at Beginning of Period
March 31, 2020	$	(206.5)	-2.3	%
June 30, 2020		24.4	0.3	%
September 30, 2020		138.5	1.5	%
December 31, 2020		(2.7)	0.0	%
March 31, 2021		107.4	1.1	%
June 30, 2021		104.5	1.1	%
September 30, 2021		82.3	0.9	%
December 31, 2021		31.9	0.3	%
March 31, 2022		110.2	1.2	%
June 30, 2022		(43.4)	-0.5	%
September 30, 2022		(85.4)	-0.9	%
December 31, 2022		(41.1)	-0.5	%
March 31, 2023		9.4	0.1	%
June 30, 2023		(89.3)	-0.9	%
September 30, 2023		(69.4)	-0.7	%
December 31, 2023		(57.0)	-0.6	%
March 31, 2024		(30.8)	-0.3	%
June 30, 2024		(189.3)	-1.7	%
September 30, 2024		(62.8)	-0.6	%
December 31, 2024		(31.1)	-0.3	%

The following table presents information on Consumer Loan assignments for each of the last 10 years:

	Average					Total Assignment Volume
Consumer Loan Assignment Year	Consumer Loan (1)		Advance (2)		Initial Loan Term (in months)	Unit Volume	Dollar Volume (2) (in millions)
2015	$	16,354	$	7,272	50	298,288	$	2,167.0
2016		18,218		7,976	53	330,710		2,635.5
2017		20,230		8,746	55	328,507		2,873.1
2018		22,158		9,635	57	373,329		3,595.8
2019		23,139		10,174	57	369,805		3,772.2
2020		24,262		10,656	59	341,967		3,641.2
2021		25,632		11,790	59	268,730		3,167.8
2022		27,242		12,924	60	280,467		3,625.3
2023		27,025		12,475	61	332,499		4,147.8
2024 (3)		26,497		11,961	61	386,126		4,618.4

^{(1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.}
^{(2)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(3)   The averages for 2024 Consumer Loans include both Consumer Loans that were in our portfolio as of September 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides averages for each of these segments:}

	Average
2024 Consumer Loan Assignment Period	Consumer Loan		Advance		Initial Loan Term (in months)
January 1, 2024 through September 30, 2024	$	26,564	$	12,018	61
October 1, 2024 through December 31, 2024		26,236		11,739	61

The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of December 31, 2024, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

	Forecasted Collection % as of						Spread % as of
Consumer Loan Assignment Year	December 31, 2024		Initial Forecast		Advance % (1)		December 31, 2024		Initial Forecast		% of Forecast Realized (2)
2015	65.3	%	67.7	%	44.5	%	20.8	%	23.2	%	99.7	%
2016	63.9	%	65.4	%	43.8	%	20.1	%	21.6	%	99.5	%
2017	64.7	%	64.0	%	43.2	%	21.5	%	20.8	%	99.2	%
2018	65.5	%	63.6	%	43.5	%	22.0	%	20.1	%	98.6	%
2019	67.2	%	64.0	%	44.0	%	23.2	%	20.0	%	96.9	%
2020	67.7	%	63.4	%	43.9	%	23.8	%	19.5	%	92.4	%
2021	63.8	%	66.3	%	46.0	%	17.8	%	20.3	%	83.6	%
2022	60.2	%	67.5	%	47.4	%	12.8	%	20.1	%	66.0	%
2023	64.3	%	67.5	%	46.2	%	18.1	%	21.3	%	43.1	%
2024 (3)	66.5	%	67.2	%	45.1	%	21.4	%	22.1	%	15.1	%

^{(1)   Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(2)   Presented as a percentage of total forecasted collections.}
^{(3)   The forecasted collection rate, advance rate and spread for 2024 Consumer Loans as of December 31, 2024 include both Consumer Loans that were in our portfolio as of September 30, 2024 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates, advance rates, and spreads for each of these segments:}

	Forecasted Collection % as of						Spread % as of
2024 Consumer Loan Assignment Period	December 31, 2024		Initial Forecast		Advance %		December 31, 2024		Initial Forecast
January 1, 2024 through September 30, 2024	66.4	%	67.3	%	45.3	%	21.1	%	22.0	%
October 1, 2024 through December 31, 2024	66.8	%	66.9	%	44.5	%	22.3	%	22.4	%

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2020 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of December 31, 2024 and the advance rate ranges from 12.8% to 23.8%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spread with respect to 2022 Consumer Loans has been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2024 Consumer Loans relative to 2023 Consumer Loans as of December 31, 2024 was primarily a result of Consumer Loan performance, as the performance of 2023 Consumer Loans has been lower than our initial estimates by a greater margin than 2024 Consumer Loans. Additionally, 2024 Consumer Loans had a higher initial spread, which was primarily due to a decrease in the advance rate.

The following table compares our forecast of aggregate Consumer Loan collection rates as of December 31, 2024 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

	Dealer Loans						Purchased Loans
	Forecasted Collection Percentage as of (1)						Forecasted Collection Percentage as of (1)
Consumer Loan Assignment Year	December 31, 2024		Initial Forecast		Variance		December 31, 2024		Initial Forecast		Variance
2015	64.6	%	67.5	%	-2.9	%	69.0	%	68.5	%	0.5	%
2016	63.1	%	65.1	%	-2.0	%	66.1	%	66.5	%	-0.4	%
2017	64.1	%	63.8	%	0.3	%	66.3	%	64.6	%	1.7	%
2018	64.9	%	63.6	%	1.3	%	66.8	%	63.5	%	3.3	%
2019	66.8	%	63.9	%	2.9	%	67.9	%	64.2	%	3.7	%
2020	67.5	%	63.3	%	4.2	%	67.9	%	63.6	%	4.3	%
2021	63.5	%	66.3	%	-2.8	%	64.3	%	66.3	%	-2.0	%
2022	59.5	%	67.3	%	-7.8	%	62.1	%	68.0	%	-5.9	%
2023	63.1	%	66.8	%	-3.7	%	67.7	%	69.4	%	-1.7	%
2024	65.4	%	66.3	%	-0.9	%	70.7	%	70.7	%	0.0	%

^{(1) The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of December 31, 2024 for dealer loans and purchased loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

	Dealer Loans						Purchased Loans
Consumer Loan Assignment Year	Forecasted Collection % (1)		Advance % (1)(2)		Spread %		Forecasted Collection % (1)		Advance % (1)(2)		Spread %
2015	64.6	%	43.4	%	21.2	%	69.0	%	50.2	%	18.8	%
2016	63.1	%	42.1	%	21.0	%	66.1	%	48.6	%	17.5	%
2017	64.1	%	42.1	%	22.0	%	66.3	%	45.8	%	20.5	%
2018	64.9	%	42.7	%	22.2	%	66.8	%	45.2	%	21.6	%
2019	66.8	%	43.1	%	23.7	%	67.9	%	45.6	%	22.3	%
2020	67.5	%	43.0	%	24.5	%	67.9	%	45.5	%	22.4	%
2021	63.5	%	45.1	%	18.4	%	64.3	%	47.7	%	16.6	%
2022	59.5	%	46.4	%	13.1	%	62.1	%	50.1	%	12.0	%
2023	63.1	%	44.8	%	18.3	%	67.7	%	49.8	%	17.9	%
2024	65.4	%	44.1	%	21.3	%	70.7	%	48.9	%	21.8	%

^{(1) The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.}
^{(2) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.}

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of December 31, 2024 on 2024 dealer loans was 21.3%, as compared to a spread of 18.3% on 2023 dealer loans. The increase was primarily due to Consumer Loan performance, as the performance of 2023 dealer loans has been lower than our initial estimates by a greater margin than 2024 dealer loans.

The spread as of December 31, 2024 on 2024 purchased loans was 21.8%, as compared to a spread of 17.9% on 2023 purchased loans. The increase was primarily a result of a higher initial spread on 2024 purchased loans, due to a higher initial forecast and lower advance rate. Additionally, the performance of 2023 purchased loans has been lower than our initial estimates.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last eight quarters as compared to the same period in the previous year:

	Year over Year Percent Change
Three Months Ended	Unit Volume		Dollar Volume (1)
March 31, 2023	22.8	%	18.6	%
June 30, 2023	12.8	%	8.3	%
September 30, 2023	13.0	%	10.5	%
December 31, 2023	26.7	%	21.3	%
March 31, 2024	24.1	%	20.2	%
June 30, 2024	20.9	%	16.3	%
September 30, 2024	17.7	%	12.2	%
December 31, 2024	0.3	%	-4.9	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs, (2) the amount of capital available to fund new loans, and (3) our assessment of the volume that our infrastructure can support. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital and infrastructure constraints.

Unit volumes grew 0.3% while dollar volume declined 4.9% during the fourth quarter of 2024 as the number of active dealers grew 4.7% and the average unit volume per active dealer declined 3.7%. Dollar volume declined while unit volume grew modestly during the fourth quarter of 2024 due to a decrease in the average advance paid, resulting from decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended January 28, 2025 decreased 3.2% compared to the same period in 2024.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended December 31,				For the Years Ended December 31,
	2024	2023	% Change		2024	2023	% Change
Consumer Loan unit volume	78,911	78,652	0.3	%	386,126	332,499	16.1	%
Active dealers (1)	10,149	9,693	4.7	%	15,463	14,174	9.1	%
Average volume per active dealer	7.8	8.1	-3.7	%	25.0	23.5	6.4	%

Consumer Loan unit volume from dealers active both periods	61,222	64,393	-4.9	%	339,361	304,779	11.3	%
Dealers active both periods	6,294	6,294	—		10,637	10,637	—
Average volume per dealer active both periods	9.7	10.2	-4.9	%	31.9	28.7	11.3	%

Consumer loan unit volume from dealers not active both periods	17,689	14,259	24.1	%	46,765	27,720	68.7	%
Dealers not active both periods	3,855	3,399	13.4	%	4,826	3,537	36.4	%
Average volume per dealer not active both periods	4.6	4.2	9.5	%	9.7	7.8	24.4	%

^{(1) Active dealers are dealers who have received funding for at least one Consumer Loan during the period.}

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended December 31,						For the Years Ended December 31,
	2024		2023		% Change		2024		2023		% Change
Consumer Loan unit volume from new active dealers	2,733		3,307		-17.4	%	43,985		46,741		-5.9	%
New active dealers (1)	902		975		-7.5	%	4,330		4,070		6.4	%
Average volume per new active dealer	3.0		3.4		-11.8	%	10.2		11.5		-11.3	%

Attrition (2)	-18.1	%	-17.4	%			-8.3	%	-7.3	%

^{(1) New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.}
^{(2) Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.}

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last eight quarters:

	Unit Volume				Dollar Volume (1)
Three Months Ended	Dealer Loans		Purchased Loans		Dealer Loans		Purchased Loans
March 31, 2023	72.1	%	27.9	%	68.1	%	31.9	%
June 30, 2023	72.4	%	27.6	%	68.6	%	31.4	%
September 30, 2023	74.8	%	25.2	%	71.7	%	28.3	%
December 31, 2023	77.2	%	22.8	%	75.0	%	25.0	%
March 31, 2024	78.2	%	21.8	%	76.6	%	23.4	%
June 30, 2024	78.5	%	21.5	%	77.3	%	22.7	%
September 30, 2024	79.5	%	20.5	%	78.4	%	21.6	%
December 31, 2024	78.7	%	21.3	%	77.7	%	22.3	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under our portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under our purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

As of December 31, 2024 and December 31, 2023, the net dealer loans receivable balance was 72.3% and 67.7%, respectively, of the total net loans receivable balance.

Financial Results

(Dollars in millions, except per share data)	For the Three Months Ended December 31,						For the Years Ended December 31,
		2024		2023	% Change			2024		2023	% Change
GAAP average debt	$	6,202.5	$	4,986.3	24.4	%	$	5,849.7	$	4,785.7	22.2	%
GAAP average shareholders’ equity		1,712.3		1,734.3	-1.3	%		1,652.1		1,722.9	-4.1	%
Average capital	$	7,914.8	$	6,720.6	17.8	%	$	7,501.8	$	6,508.6	15.3	%
GAAP net income	$	151.9	$	93.6	62.3	%	$	247.9	$	286.1	-13.4	%
Diluted weighted average shares outstanding		12,388,072		12,837,181	-3.5	%		12,469,283		13,010,735	-4.2	%
GAAP net income per diluted share	$	12.26	$	7.29	68.2	%	$	19.88	$	21.99	-9.6	%

The increase in GAAP net income for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

An increase in finance charges of 14.7% ($66.6 million), primarily due to an increase in the average balance of our loan portfolio.
A decrease in provision for credit losses of 24.6% ($40.3 million), due to:
- A decrease in provision for credit losses on forecast changes of $31.4 million, due to a smaller decline in Consumer Loan performance.
- A decrease in provision for credit losses on new Consumer Loan assignments of $8.9 million, primarily due a 13.1% decrease in the average provision per Consumer Loan assignment. The decrease in average provision per new Consumer Loan assignment was primarily due to a decrease in the average advance rate for 2024 Consumer Loans.
- The following table summarizes each component of provision for credit losses:

(In millions)	For the Three Months Ended December 31,
Provision for Credit Losses		2024		2023	Change
Forecast changes	$	62.9	$	94.3	$	(31.4)
New Consumer Loan assignments		60.5		69.4		(8.9)
Total	$	123.4	$	163.7	$	(40.3)

An increase in premiums earned of 14.8% ($3.2 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
An increase in operating expenses of 6.4% ($7.3 million), primarily due to:
- An increase in salaries and wages expense of 17.4% ($11.5 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.
- A decrease in general and administrative expenses of 19.7% ($5.4 million), primarily due to a decrease in legal expenses.
An increase in provision for income taxes of 75.4% ($17.2 million), primarily due to an increase in pre-tax income.
An increase in interest expense of 41.2% ($32.5 million), due to:
- An increase in our average outstanding debt balance, which increased interest expense by $19.0 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.
- An increase in our average cost of debt, which increased interest expense by $13.5 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.

The decrease in GAAP net income for the year ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

An increase in interest expense of 57.4% ($153.0 million), due to:
- An increase in our average cost of debt, which increased interest expense by $93.7 million, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
- An increase in our average outstanding debt balance, which increased interest expense by $59.3 million, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.
An increase in provision for credit losses of 10.7% ($78.5 million), primarily due to an increase in provision for credit losses on forecast changes of $80.1 million, due to a greater decline in Consumer Loan performance and slower net cash flow timing during 2024 compared to 2023.

During 2024, we decreased our estimate of future net cash flows by $314.0 million, or 3.1%, to reflect a decline in forecasted collection rates during the period, and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments, which remain below historical averages. Historically, Consumer Loan prepayments have been lower in periods with less availability of consumer credit. The $314.0 million decrease in forecasted net cash flows for 2024 was composed of an ordinary decrease in forecasted net cash flows of $166.8 million, or 1.7%, and an adjustment applied to our forecasting methodology during the second quarter of 2024, which upon implementation, reduced forecasted net cash flows by $147.2 million, or 1.4%, and increased our provision for credit losses by $127.5 million.

During 2023, we decreased our estimate of future net cash flows by $206.3 million, or 2.3%, to reflect a decline in forecasted collection rates during the period and slowed our forecasted net cash flow timing to reflect a decrease in Consumer Loan prepayments. The $206.3 million decrease in forecasted net cash flows for 2023 was composed of an ordinary decrease in forecasted net cash flows of $161.8 million, or 1.8%, and an adjustment to our forecasting methodology during the second quarter of 2023, which upon implementation, decreased our estimate of future net cash flows by $44.5 million, or 0.5%, and increased our provision for credit losses by $71.3 million.

The following table summarizes each component of provision for credit losses:

(In millions)	For the Years Ended December 31,
Provision for Credit Losses		2024		2023	Change
Forecast changes	$	493.8	$	413.7	$	80.1
New Consumer Loan assignments		320.9		322.5		(1.6)
Total	$	814.7	$	736.2	$	78.5

An increase in operating expenses of 9.2% ($42.4 million), primarily due to:
- An increase in salaries and wages expense of 10.3% ($29.0 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) fringe benefits, primarily due to higher medical claims, and (iii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders.
- An increase in general and administrative expense of 12.3% ($10.7 million), primarily due to increases in legal and technology systems expenses.
A loss on sale of building of $23.7 million related to the sale of one of our two office buildings. The building was sold to reduce excess office space and eliminate the associated annual operating costs of approximately $2.1 million.
An increase in premiums earned of 20.7% ($16.5 million), primarily due to growth in the size of our reinsurance portfolio, which resulted from growth in new Consumer Loan assignments and an increase in the average premium written per reinsured vehicle service contract in recent periods.
An increase in finance charges of 13.5% ($237.3 million), primarily due to an increase in the average balance of our loan portfolio.

Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” and “Senior Notes Adjustment” sections. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted interest expense (after-tax), adjusted net income plus adjusted interest expense (after-tax), adjusted return on capital, adjusted revenue, operating expenses, adjusted loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months and year ended December 31, 2024, compared to the same periods in 2023, include the following:

(Dollars in millions, except per share data)	For the Three Months Ended December 31,								For the Years Ended December 31,
		2024			2023		% Change			2024			2023		% Change
Adjusted average capital	$	8,633.3		$	7,234.3		19.3	%	$	8,140.5		$	6,909.8		17.8	%
Adjusted net income	$	126.0		$	129.1		-2.4	%	$	478.9		$	535.6		-10.6	%
Adjusted interest expense (after-tax)	$	85.7		$	63.4		35.2	%	$	323.0		$	209.5		54.2	%
Adjusted net income plus adjusted interest expense (after-tax)	$	211.7		$	192.5		10.0	%	$	801.9		$	745.1		7.6	%
Adjusted return on capital		9.8	%		10.6	%	-7.5	%		9.9	%		10.8	%	-8.3	%
Cost of capital		7.4	%		7.6	%	-2.6	%		7.4	%		7.0	%	5.7	%
Economic profit	$	51.3		$	55.9		-8.2	%	$	200.3		$	260.5		-23.1	%
Diluted weighted average shares outstanding		12,388,072			12,837,181		-3.5	%		12,469,283			13,010,735		-4.2	%
Adjusted net income per diluted share	$	10.17		$	10.06		1.1	%	$	38.41		$	41.17		-6.7	%
Economic profit per diluted share	$	4.14		$	4.35		-4.8	%	$	16.06		$	20.02		-19.8	%

Economic profit decreased 8.2% and 23.1% for the three months and year ended December 31, 2024, as compared to the same periods in 2023. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months and year ended December 31, 2024, as compared to the same periods in 2023:

(In millions)	Year over Year Change in Economic Profit
	For the Three Months Ended December 31, 2024		For the Year Ended December 31, 2024
Decrease in adjusted return on capital	$	(17.9)	$	(76.0)
Decrease (increase) in cost of capital		2.5		(30.5)
Increase in adjusted average capital		10.8		46.3
Decrease in economic profit	$	(4.6)	$	(60.2)

The decrease in economic profit for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

A decrease in our adjusted return on capital of 80 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 150 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the third quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 50 basis points as operating expenses grew by 6.4% while adjusted average capital grew by 19.3%.
An increase in adjusted average capital of 19.3%, primarily due to an increase in the average balance of our loan portfolio.

The decrease in economic profit for the year ended December 31, 2024, as compared to the same period in 2023, was primarily a result of the following:

A decrease in our adjusted return on capital of 90 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 140 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing since the first quarter of 2023. The slower forecasted net cash flow timing was primarily a result of a decrease in Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 40 basis points as operating expenses grew by 9.2% while adjusted average capital grew by 17.8%.
An increase in our cost of capital, primarily due to an increase in our cost of debt, primarily as a result of higher interest rates on recently completed or extended secured financings and recently issued senior notes and the repayment of older secured financings and senior notes with lower interest rates.
An increase in adjusted average capital of 17.8%, primarily due to an increase in the average balance of our loan portfolio.

The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

	For the Three Months Ended
	Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Adjusted revenue as a percentage of adjusted average capital (1)	18.4	%	18.2	%	19.6	%	19.8	%	20.2	%	20.7	%	21.2	%	20.6	%
Operating expenses as a percentage of adjusted average capital (1)	5.6	%	6.2	%	6.2	%	6.7	%	6.3	%	6.3	%	6.9	%	7.2	%
Adjusted return on capital (1)	9.8	%	9.3	%	10.3	%	10.1	%	10.6	%	11.1	%	11.1	%	10.3	%
Percentage change in adjusted average capital compared to the same period in the prior year	19.3	%	19.4	%	17.6	%	14.6	%	11.5	%	8.8	%	6.2	%	1.0	%

^{(1) Annualized.}

The increase in adjusted return on capital for the three months ended December 31, 2024, as compared to the three months ended September 30, 2024, was primarily due to a decrease in operating expenses, which increased adjusted return on capital by 40 basis points, as operating expenses declined by 6.0% while adjusted average capital grew by 2.9%. The $7.8 million decrease in operating expenses was primarily due to a decrease in legal expenses.

The following tables provide a reconciliation of non-GAAP measures to GAAP measures. Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data)	For the Three Months Ended
	Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Adjusted net income
GAAP net income (loss)	$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2		$	99.5
Floating yield adjustment (after-tax)		(116.8)			(115.1)			(96.1)			(92.4)			(83.9)			(76.4)			(73.9)			(75.9)
GAAP provision for credit losses (after-tax)		95.0			142.2			246.9			143.2			126.1			142.1			192.9			105.8
Loss on sale of building (after-tax) (1)		—			—			18.3			—			—			—			—			—
Senior notes adjustment (after-tax)		—			—			—			—			(2.6)			(0.5)			(0.6)			(0.5)
Income tax adjustment (2)		(4.1)			3.2			4.4			2.3			(4.1)			3.5			(0.6)			(1.9)
Adjusted net income	$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0		$	127.0

Adjusted net income per diluted share (3)	$	10.17		$	8.79		$	10.29		$	9.28		$	10.06		$	10.70		$	10.69		$	9.71
Diluted weighted average shares outstanding		12,388,072			12,415,143			12,282,174			12,646,529			12,837,181			13,039,638			13,099,961			13,073,316

Adjusted revenue
GAAP total revenue	$	565.9		$	550.3		$	538.2		$	508.0		$	491.6		$	478.6		$	477.9		$	453.8
Floating yield adjustment		(151.8)			(149.4)			(124.8)			(120.0)			(108.9)			(99.3)			(96.1)			(98.4)
GAAP provision for claims		(17.7)			(18.5)			(20.3)			(17.0)			(16.6)			(16.5)			(19.7)			(17.9)
Adjusted revenue	$	396.4		$	382.4		$	393.1		$	371.0		$	366.1		$	362.8		$	362.1		$	337.5

Adjusted average capital
GAAP average debt	$	6,202.5		$	6,071.1		$	5,818.2		$	5,306.8		$	4,986.3		$	4,831.4		$	4,730.3		$	4,594.7
Deferred debt issuance adjustment		—			—			—			—			20.9			24.5			24.0			21.2
Senior notes debt adjustment		—			—			—			—			2.8			3.4			3.4			3.4
Adjusted average debt		6,202.5			6,071.1			5,818.2			5,306.8			5,010.0			4,859.3			4,757.7			4,619.3
GAAP average shareholders’ equity		1,712.3			1,594.2			1,623.5			1,678.5			1,734.3			1,731.3			1,752.6			1,673.3
Senior notes equity adjustment		—			—			—			—			2.0			2.9			3.4			4.0
Income tax adjustment (4)		(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)
Floating yield adjustment		837.0			840.8			710.1			641.0			606.5			548.9			433.9			373.7
Adjusted average equity		2,430.8			2,316.5			2,215.1			2,201.0			2,224.3			2,164.6			2,071.4			1,932.5
Adjusted average capital	$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1		$	6,551.8

Adjusted revenue as a percentage of adjusted average capital (5)		18.4	%		18.2	%		19.6	%		19.8	%		20.2	%		20.7	%		21.2	%		20.6	%

Adjusted loans receivable
GAAP loans receivable, net	$	7,850.3		$	7,781.5		$	7,547.7		$	7,345.6		$	6,955.3		$	6,780.5		$	6,610.3		$	6,500.3
Floating yield adjustment		1,072.4			1,100.8			1,065.6			869.7			803.8			748.9			663.7			509.2
Adjusted loans receivable	$	8,922.7		$	8,882.3		$	8,613.3		$	8,215.3		$	7,759.1		$	7,529.4		$	7,274.0		$	7,009.5

Adjusted interest expense (after-tax)
GAAP interest expense	$	111.3		$	111.2		$	104.5		$	92.5		$	78.8		$	70.5		$	62.8		$	54.4
Senior notes adjustment		—			—			—			—			3.5			0.7			0.7			0.7
Adjusted interest expense (pre-tax)		111.3			111.2			104.5			92.5			82.3			71.2			63.5			55.1
Adjustment to record tax effect (2)		(25.6)			(25.6)			(24.0)			(21.3)			(18.9)			(16.4)			(14.6)			(12.7)
Adjusted interest expense (after-tax)	$	85.7		$	85.6		$	80.5		$	71.2		$	63.4		$	54.8		$	48.9		$	42.4

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   Net income per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per diluted share information may not equal year-to-date net income per diluted share.}
^{(4)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(5)   Annualized.}

(Dollars in millions)	For the Three Months Ended
	Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Adjusted return on capital (1)
Adjusted net income	$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0		$	127.0
Adjusted interest expense (after-tax)		85.7			85.6			80.5			71.2			63.4			54.8			48.9			42.4
Adjusted net income plus adjusted interest expense (after-tax)	$	211.7		$	194.7		$	206.9		$	188.6		$	192.5		$	194.3		$	188.9		$	169.4

Reconciliation of GAAP return on equity to adjusted return on capital (4)
GAAP return on equity (2)		35.5	%		19.8	%		-11.6	%		15.3	%		21.6	%		16.4	%		5.1	%		23.8	%
Non-GAAP adjustments		-25.7	%		-10.5	%		21.9	%		-5.2	%		-11.0	%		-5.3	%		6.0	%		-13.5	%
Adjusted return on capital (1)		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%		10.3	%

Economic profit
Adjusted return on capital		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%		10.3	%
Cost of capital (3) (4)		7.4	%		7.3	%		7.5	%		7.3	%		7.6	%		7.1	%		6.7	%		6.6	%
Adjusted return on capital in excess of cost of capital		2.4	%		2.0	%		2.8	%		2.8	%		3.0	%		4.0	%		4.4	%		3.7	%
Adjusted average capital	$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1		$	6,551.8
Economic profit	$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1		$	61.4

Reconciliation of GAAP net income (loss) to economic profit
GAAP net income (loss)	$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2		$	99.5
Non-GAAP adjustments		(25.9)			30.3			173.5			53.1			35.5			68.7			117.8			27.5
Adjusted net income		126.0			109.1			126.4			117.4			129.1			139.5			140.0			127.0
Adjusted interest expense (after-tax)		85.7			85.6			80.5			71.2			63.4			54.8			48.9			42.4
Adjusted net income plus adjusted interest expense (after-tax)		211.7			194.7			206.9			188.6			192.5			194.3			188.9			169.4
Less: cost of capital		160.4			153.3			150.7			137.2			136.6			125.2			114.8			108.0
Economic profit	$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1		$	61.4

Economic profit per diluted share (5)	$	4.14		$	3.33		$	4.58		$	4.06		$	4.35		$	5.30		$	5.66		$	4.70

Operating expenses as a percentage of adjusted average capital (4)		5.6	%		6.2	%		6.2	%		6.7	%		6.3	%		6.3	%		6.9	%		7.2	%

Percentage change in adjusted average capital compared to the same period in the prior year		19.3	%		19.4	%		17.6	%		14.6	%		11.5	%		8.8	%		6.2	%		1.0	%

^{(1) Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.}
^{(2) Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.}
^{(3) The cost of capital includes both a cost of equity and a cost of debt. The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt. The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)]. For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Three Months Ended
	Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023		Mar. 31, 2023
Average 30-year Treasury rate	4.4	%	4.3	%	4.6	%	4.3	%	4.7	%	4.2	%	3.8	%	3.8	%
Pre-tax average cost of debt (4)	7.2	%	7.3	%	7.2	%	7.0	%	6.3	%	5.9	%	5.3	%	4.8	%

^{(4) Annualized.}
^{(5) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

(In millions, except share and per share data)	For the Years Ended December 31,
		2024			2023
Adjusted net income
GAAP net income	$	247.9		$	286.1
Floating yield adjustment (after-tax)		(420.4)			(310.1)
GAAP provision for credit losses (after-tax)		627.3			566.9
Loss on sale of building (after-tax) (1)		18.3			—
Senior notes adjustment (after-tax)		—			(4.2)
Income tax adjustment (2)		5.8			(3.1)
Adjusted net income	$	478.9		$	535.6

Adjusted net income per diluted share	$	38.41		$	41.17
Diluted weighted average shares outstanding		12,469,283			13,010,735

Adjusted average capital
GAAP average debt	$	5,849.7		$	4,785.7
Deferred debt issuance adjustment		—			22.7
Senior notes debt adjustment		—			3.2
Adjusted average debt		5,849.7			4,811.6
GAAP average shareholders’ equity		1,652.1			1,722.9
Senior notes equity adjustment		—			3.1
Income tax adjustment (3)		(118.5)			(118.5)
Floating yield adjustment		757.2			490.7
Adjusted average equity		2,290.8			2,098.2
Adjusted average capital	$	8,140.5		$	6,909.8

Adjusted interest expense (after-tax)
GAAP interest expense	$	419.5		$	266.5
Senior notes adjustment		—			5.6
Adjusted interest expense (pre-tax)		419.5			272.1
Adjustment to record tax effect (2)		(96.5)			(62.6)
Adjusted interest expense (after-tax)	$	323.0		$	209.5

Adjusted return on capital (5)
Adjusted net income	$	478.9		$	535.6
Adjusted interest expense (after-tax)		323.0			209.5
Adjusted net income plus adjusted interest expense (after-tax)	$	801.9		$	745.1

Reconciliation of GAAP return on equity to adjusted return on capital
GAAP return on equity (4)		15.0	%		16.6	%
Non-GAAP adjustments		-5.1	%		-5.8	%
Adjusted return on capital (5)		9.9	%		10.8	%

Economic profit
Adjusted return on capital		9.9	%		10.8	%
Cost of capital (6)		7.4	%		7.0	%
Adjusted return on capital in excess of cost of capital		2.5	%		3.8	%
Adjusted average capital	$	8,140.5		$	6,909.8
Economic profit	$	200.3		$	260.5

Reconciliation of GAAP net income to economic profit
GAAP net income	$	247.9		$	286.1
Non-GAAP adjustments		231.0			249.5
Adjusted net income		478.9			535.6
Adjusted interest expense (after-tax)		323.0			209.5
Adjusted net income plus adjusted interest expense (after-tax)		801.9			745.1
Less: cost of capital		601.6			484.6
Economic profit	$	200.3		$	260.5

Economic profit per diluted share (7)	$	16.06		$	20.02

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)        Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(4)   Calculated by dividing GAAP net income by GAAP average shareholders’ equity.}
^{(5)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense after-tax divided by adjusted average capital.}
^{(6)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Years Ended December 31,
	2024		2023
Average 30-year Treasury rate	4.4	%	4.1	%
Pre-tax average cost of debt	7.2	%	5.5	%

^{(7) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; and
finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Senior Notes Adjustment (applied in periods prior to December 31, 2023)

This non-GAAP adjustment modifies our GAAP financial results to treat the issuance of certain senior notes as a refinancing of certain previously issued senior notes. Our historical adjusted financial information reflects application of the senior notes adjustment as described below in connection with (i) the issuance by us in 2014 of $300.0 million principal amount of 6.125% senior notes due 2021 (the “2021 senior notes”) and the related retirement of our 9.125% senior notes due 2017 (the “2017 senior notes”) and (ii) the issuance by us in 2019 of $400.0 million principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”) and the related retirement of the 2021 senior notes and our 7.375% senior notes due 2023 (the “2023 senior notes”).

We issued the 2024 senior notes on December 18, 2019. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of the 2021 senior notes, of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of the 2023 senior notes on March 15, 2020. Under GAAP, the fourth quarter of 2019 included (i) a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of 2021 senior notes in the fourth quarter of 2019 and the redemption of the remaining 2021 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.3 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020. Under GAAP, the first quarter of 2020 included (i) a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of 2023 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.4 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020.

We issued the 2021 senior notes on January 22, 2014. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of the 2017 senior notes. Under GAAP, the first quarter of 2014 included (i) a pre-tax loss on extinguishment of debt of $21.8 million related to the redemption of the 2017 senior notes in the first quarter of 2014 and (ii) additional interest expense of $1.4 million on $276.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2021 senior notes to the redemption of the 2017 senior notes.

Under our non-GAAP approach, the loss on extinguishment of debt and additional interest expense that were recognized for GAAP purposes were in each case deferred as debt issuance costs to be recognized ratably as interest expense over the term of the newly issued notes. In addition, for adjusted average capital purposes, the impact of additional outstanding debt related to the lag from the issuance of the new notes to the redemption of the previously issued notes was in each case deferred to be recognized ratably over the term of the newly issued notes. Upon the issuance of the 2024 senior notes in the fourth quarter of 2019, the outstanding unamortized balances of the non-GAAP adjustments related to the 2021 senior notes were deferred and were recognized ratably over the term of the 2024 senior notes, until the repurchase and redemption of the 2024 senior notes in December 2023.

We believe the application of the senior notes adjustment as described above provides a more accurate reflection of the performance of our business, since we were recognizing the costs incurred with these transactions in a manner consistent with how we recognize the costs incurred when we periodically refinance our other debt facilities. We have determined not to apply the senior notes adjustment in connection with the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes, because the adjustment would not be material.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2024, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
We are dependent on our senior management and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.
The concentration in several states of automobile dealers who participate in our programs could adversely affect us.
Reliance on our outsourced business functions could adversely affect our business.
Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.
We may be unable to execute our business strategy due to current economic conditions.
Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.
Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.
A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
The terms of our debt limit how we conduct our business.
A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.
Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.
We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.
Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.
We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.

Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.
We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.
Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.
Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.

Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.
Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
The regulations to which we are or may become subject could result in a material adverse effect on our business.

Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Webcast Details

We will host a webcast on January 30, 2025 at 5:00 p.m. Eastern Time to discuss our fourth quarter and full year results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website.

To participate in the webcast by telephone, you must pre-register at https://register.vevent.com/register/BIa9a65d89cd7e4a4192d3cecb8f0d2b67, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(Dollars in millions, except per share data)	For the Three Months Ended December 31,				For the Years Ended December 31,
		2024		2023		2024		2023
Revenue:
Finance charges	$	518.2	$	451.6	$	1,992.7	$	1,755.4
Premiums earned		24.8		21.6		96.1		79.6
Other income		22.9		18.4		73.6		66.9
Total revenue		565.9		491.6		2,162.4		1,901.9
Costs and expenses:
Salaries and wages		77.6		66.1		309.2		280.2
General and administrative		22.0		27.4		97.9		87.2
Sales and marketing		22.0		20.8		94.4		91.7
Total operating expenses		121.6		114.3		501.5		459.1

Provision for credit losses on forecast changes		62.9		94.3		493.8		413.7
Provision for credit losses on new Consumer Loan assignments		60.5		69.4		320.9		322.5
Total provision for credit losses		123.4		163.7		814.7		736.2

Interest		111.3		78.8		419.5		266.5
Provision for claims		17.7		16.6		73.5		70.7
Loss on sale of building		—		—		23.7		—
Loss on extinguishment of debt		—		1.8		—		1.8
Total costs and expenses		374.0		375.2		1,832.9		1,534.3
Income before provision for income taxes		191.9		116.4		329.5		367.6
Provision for income taxes		40.0		22.8		81.6		81.5
Net income	$	151.9	$	93.6	$	247.9	$	286.1

Net income per share:
Basic	$	12.39	$	7.33	$	20.12	$	22.09
Diluted	$	12.26	$	7.29	$	19.88	$	21.99

Weighted average shares outstanding:
Basic		12,256,198		12,775,616		12,323,261		12,953,424
Diluted		12,388,072		12,837,181		12,469,283		13,010,735

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)	As of
	December 31, 2024		December 31, 2023
ASSETS:
Cash and cash equivalents	$	343.7	$	13.2
Restricted cash and cash equivalents		501.3		457.7
Restricted securities available for sale		106.4		93.2

Loans receivable		11,289.1		10,020.1
Allowance for credit losses		(3,438.8)		(3,064.8)
Loans receivable, net		7,850.3		6,955.3

Property and equipment, net		14.7		46.5
Income taxes receivable		4.2		4.3
Other assets		34.0		40.0
Total assets	$	8,854.6	$	7,610.2

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Liabilities:
Accounts payable and accrued liabilities	$	315.8	$	318.8
Revolving secured lines of credit		0.1		79.2
Secured financing		5,361.5		3,990.9
Senior notes		991.3		989.0
Mortgage note		—		8.4
Deferred income taxes, net		319.1		389.2
Income taxes payable		117.2		81.0
Total liabilities		7,105.0		5,856.5

Shareholders’ Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued		—		—
Common stock, $.01 par value, 80,000,000 shares authorized, 12,048,151 and 12,522,397 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively		0.1		0.1
Paid-in capital		335.1		279.0
Retained earnings		1,414.7		1,475.6
Accumulated other comprehensive loss		(0.3)		(1.0)
Total shareholders’ equity		1,749.6		1,753.7
Total liabilities and shareholders’ equity	$	8,854.6	$	7,610.2

The MIL Network –

January 31, 2025

MIL-OSI: Medallion Bank Reports 2024 Fourth Quarter and Full-Year Results and Declares Series F Preferred Stock Dividend

Source: GlobeNewswire (MIL-OSI)

SALT LAKE CITY, Jan. 30, 2025 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank specializing in consumer loans for the purchase of recreational vehicles, boats, and home improvements, as well as loan products and services offered through fintech strategic partners, today announced its results for the quarter and year ended December 31, 2024. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

2024 Fourth Quarter Highlights

Net income of $15.6 million, compared to $21.9 million in the prior year quarter.
Net interest income of $53.1 million, compared to $48.9 million in the prior year quarter.
Net interest margin of 8.28%, compared to 8.62% in the prior year quarter.
Total provision for credit losses was $20.5 million, compared to $9.7 million in the prior year quarter. Total provision for credit losses included $0.9 million of net taxi medallion recoveries, compared to $12.0 million of net taxi medallion recoveries in the prior year quarter.
Annualized net charge-offs were 3.28% of average loans outstanding, compared to 1.04% in the prior year quarter.
In December 2024, the Bank signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value.

2024 Full-Year Highlights

Net income of $60.6 million, compared to net income of $79.9 million in 2023.
Net interest income of $204.7 million, compared to $188.9 million in 2023.
Net interest margin of 8.48%, compared to 8.84% in 2023.
Total provision for credit losses was $75.8 million, compared to $36.5 million in 2023. Total provision for credit losses included $4.9 million of net taxi medallion recoveries, compared to $18.1 million of net taxi medallion recoveries in 2023.
Total net charge-offs were 2.82% of average loans outstanding, compared to 1.52% in 2023.
Return on assets and return on equity were 2.52% and 16.62%, respectively, compared to 3.74% and 24.57% in 2023.
Total loan portfolio grew 13% to $2.4 billion.
Total assets were $2.5 billion, total capital was $382.4 million, and the Tier 1 leverage ratio was 15.68% as of December 31, 2024.

Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “We finished 2024 on a solid note, with quarterly earnings of $15.6 million and net interest income above $53 million. Volumes in our strategic partnership business tripled to $124 million from $40 million in the third quarter. As anticipated, recreation and home improvement loan volumes slowed with the winter season, and loan delinquency and net charge-offs rose in the quarter as is expected. With record recreation loan originations of more than $526 million in 2024, we initiated another loan sale — our fifth since 2016 — in preparation for the projected demand from our customers in 2025. We view loan sales as an efficient method to recycle capital that can also generate earnings when demand exceeds our capacity. Reclassifying these recreation loans as held for sale resulted in a release of $3.9 million in related allowance for credit losses. As we look ahead, our priorities remain constant: loan originations of predictable credit quality and managed growth that continues to deliver increasing net interest income while maintaining or growing our market position.”

Recreation Lending Segment

The Bank’s recreation loan portfolio grew 15% to $1.543 billion as of December 31, 2024, compared to $1.336 billion at December 31, 2023. Loan originations were $72.2 million in the fourth quarter 2024, compared to $62.7 million in the prior year quarter. For the year, loan originations were $526.6 million, compared to $447.0 million in 2023.
Net interest income was $39.4 million for the fourth quarter 2024, compared to $36.2 million in the prior year quarter. For the year, net interest income was $153.1 million, compared to $140.3 million in 2023.
Recreation loans were 65% of loans receivable as of December 31, 2024, compared to 64% at December 31, 2023.
Annualized net charge-offs were 4.35% of average recreation loans outstanding in the fourth quarter 2024, compared to 4.23% in the prior year quarter. For the year, total net charge-offs were 3.72% of average recreation loans outstanding, compared to 3.04% in 2023.
The provision for recreation credit losses was $17.7 million in the fourth quarter 2024, compared to $14.8 million in the prior year quarter. For the year, the provision for recreation credit losses was $68.0 million, compared to $44.6 million in 2023. The provisions for the three and twelve months ended December 31, 2024 included $3.9 million of allowance for credit losses released as $121 million of recreation loans were reclassified as held for sale.
The recreation allowance for credit losses was 5.00% of the outstanding balance as of December 31, 2024, compared to 4.31% of the outstanding balance as of December 31, 2023. The Bank does not record an allowance for loans held for sale, so the allowance as of December 31, 2024 relates only to the remaining recreation loans held for investment.

Home Improvement Lending Segment

The Bank’s home improvement loan portfolio grew 9% to $827.2 million as of December 31, 2024, compared to $760.6 million at December 31, 2023. Loan originations were $82.5 million in the fourth quarter 2024, compared to $66.0 million in the prior year quarter. For the year, loan originations were $298.7 million, compared to $357.4 million in 2023.
Net interest income was $13.1 million for the fourth quarter 2024, compared to $12.2 million in the prior year quarter. For the year, net interest income was $50.2 million, compared to $46.6 million in 2023.
Home improvement loans were 35% of loans receivable as of December 31, 2024, compared to 36% at December 31, 2023.
Annualized net charge-offs were 1.75% of average home improvement loans outstanding in the fourth quarter 2024, compared to 1.67% in the prior year quarter. For the year, total net charge-offs were 1.78% of average home improvement loans outstanding, compared to 1.33% in 2023.
The provision for home improvement credit losses was $4.4 million in the fourth quarter 2024, compared to $6.9 million in the prior year quarter. For the year, the provision for home improvement credit losses was $13.5 million, compared to $17.6 million in 2023.
The home improvement allowance for credit losses was 2.48% of the outstanding balance at December 31, 2024, compared to 2.76% of the outstanding balance at December 31, 2023.

Series F Preferred Stock Dividend

On January 23, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.50 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is payable on April 1, 2025, to holders of record at the close of business on March 17, 2025.

About Medallion Bank

Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

For more information, visit www.medallionbank.com

Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “continue,” “may,” “maintain” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2023, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

MEDALLION BANK STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended December 31,				For the Years Ended December 31,
(In thousands)	2024		2023		2024		2023
Interest income
Loan interest including fees	$	71,577	$	61,668	$	268,914	$	231,496
Investments		1,564		1,585		6,306		5,171
Total interest income		73,141		63,253		275,220		236,667
Interest expense		20,039		14,401		70,509		47,785
Net interest income		53,102		48,852		204,711		188,882
Provision for credit losses		20,500		9,717		75,845		36,457
Net interest income after provision for credit losses		32,602		39,135		128,866		152,425
Other non-interest income		16		839		2,134		2,102
Non-interest expense
Salaries and benefits		5,014		4,997		19,985		19,001
Loan servicing		3,173		2,903		12,248		11,626
Collection costs		1,517		1,492		6,095		5,965
Regulatory fees		969		692		3,795		3,176
Professional fees		508		631		1,694		2,243
Information technology		329		281		1,186		1,031
Occupancy and equipment		541		206		1,167		830
Other		938		818		3,624		3,524
Total non-interest expense		12,989		12,020		49,794		47,396
Income before income taxes		19,629		27,954		81,206		107,131
Provision for income taxes		4,040		6,011		20,624		27,279
Net income	$	15,589	$	21,943	$	60,582	$	79,852
Less: Preferred stock dividends		1,512		1,512		6,047		6,047
Net income attributable to common shareholder	$	14,077	$	20,431	$	54,535	$	73,805

MEDALLION BANK
BALANCE SHEETS
(UNAUDITED)

(In thousands)	December 31, 2024			December 31, 2023
Assets
Cash and federal funds sold	$	126,196		$	110,043
Investment securities, available-for-sale		54,805			54,282
Loans held for sale, at the lower of amortized cost or fair value		128,226			—

Loan receivables, inclusive of net deferred loan acquisition cost and fees		2,249,613			2,100,338
Allowance for credit losses		(91,638	)		(79,283	)
Loans, net		2,157,975			2,021,055
Loan collateral in process of foreclosure		3,326			4,165
Fixed assets and right-of-use lease assets, net		9,126			8,140
Deferred tax assets		14,036			12,761
Accrued interest receivable		15,083			13,439
Other assets		40,326			38,171
Total assets	$	2,549,099		$	2,262,056
Liabilities and Shareholders’ Equity
Liabilities
Deposits and other funds borrowed	$	2,125,071		$	1,866,657
Accrued interest payable		5,586			4,029
Income tax payable		17,951			21,219
Other liabilities		17,204			17,509
Due to affiliates		910			849
Total liabilities		2,166,722			1,910,263
Shareholder’s Equity
Series E Preferred stock		26,303			26,303
Series F Preferred stock		42,485			42,485
Common stock		1,000			1,000
Additional paid in capital		77,500			77,500
Accumulated other comprehensive loss, net of tax		(4,480	)		(4,529	)
Retained earnings		239,569			209,034
Total shareholders’ equity		382,377			351,793
Total liabilities and shareholders’ equity	$	2,549,099		$	2,262,056

The MIL Network –

January 31, 2025

MIL-OSI USA: Kennedy backs bill to crack down on fentanyl, help law enforcement tackle opioid crisis

US Senate News:

Source: United States Senator John Kennedy (Louisiana)

WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Judiciary Committee, today joined Sens. Chuck Grassley (R-Iowa), Bill Cassidy (R-La.) and Martin Heinrich (D-N.M.) in introducing the Halt All Lethal Trafficking of (HALT) Fentanyl Act, which would permanently list fentanyl-related substances as Schedule I substances under the Controlled Substances Act.

“Americans know the carnage of fentanyl all too well. The HALT Fentanyl Act would save lives in Louisiana and across the country by empowering law enforcement to seek justice against dealers who work with cartels to profit off feeding poison to Americans,” said Kennedy.

Fentanyl is a scheduled substance, but Mexican drug cartels make small chemical tweaks to fentanyl to produce drugs—fentanyl-related substances—with similar dangerous effects that are not controlled.

In response to this crisis, the DEA exercised its authority to temporarily classify fentanyl-related substances as Schedule I under the Controlled Substances Act. That temporary scheduling order will expire on March 31, 2025 if Congress does not act.

Under the HALT Fentanyl Act, fentanyl-related substances would remain Schedule I. In addition, the bill clarifies that the mandatory minimum penalties that apply to fentanyl also apply to the trafficking of fentanyl-related substances.

“Today, roughly 150 Americans will die from fentanyl poisoning. Cartels fuel this crisis by marketing their poison as legitimate prescription pills. They also avoid regulation by chemically altering the drugs to create powerful fentanyl knock-offs. Congress closed that loophole by temporarily classifying fentanyl related substances under Schedule 1. The HALT Fentanyl Act would make permanent fentanyl related substances’ Schedule 1 classification and ensure law enforcement has the tools they need to combat these deadly drugs,” said Grassley.

“The Biden administration’s open border was an invitation to drug cartels smuggling Chinese fentanyl into the U.S., fueling the U.S. overdose epidemic. Law enforcement must have the tools necessary to combat this trend. We cannot let this Schedule I classification lapse,” said Cassidy.

“We’re losing more than 100,000 Americans each year to illicit fentanyl overdoses. I refuse to accept this reality, and that’s why I’m working to deliver tools law enforcement personnel need to keep deadly fentanyl off our streets and out of our communities. Permanently scheduling fentanyl and its analogues will help federal and local law enforcement crack down on illegal trafficking and allow prosecutors to build stronger, longer-term criminal cases. Our HALT Fentanyl Act will help stop the flow of these deadly drugs into our communities and save lives,” said Heinrich.

Background:

The Centers for Disease Control and Prevention estimated that in 2023 there were 81,083 overdose deaths in the U.S. that involved opioids.

In March 2023, Kennedy introduced the Fairness in Fentanyl Sentencing Act, which would have made sure fentanyl-trafficking sentences reflected the deadliness of the substance. Senate Democrats blocked the bill in May 2023.

In 2024, U.S. Customs and Border Protection seized 21,889 pounds of fentanyl, enough to kill more than 4.9 billion people (assuming a lethal dose of two milligrams)—or enough to wipe out the entire U.S. population more than 14 times over.

Sens. Roger Marshall (R-Kan.), Todd Young (R-Ind.), Steve Daines (R-Mont.), Eric Schmitt (R-Mo.), Maggie Hassan (D-N.H.), Shelley Moore Capito (R-W.Va.), Ruben Gallego (D-Ariz.), Catherine Cortez Masto (D-Nev.), Mike Rounds (R-S.D.) and Jeanne Shaheen (D-N.H.) cosponsored the legislation.

The full bill text is available here.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Tillis Introduces Kash Patel at Nomination Hearing to be Director of the FBI

US Senate News:

Source: United States Senator for North Carolina Thom Tillis

WASHINGTON, D.C. – Today, Senator Thom Tillis, a member of the Senate Judiciary Committee, introduced Kash Patel at his nomination hearing before the Senate Judiciary Committee to be the Director of the Federal Bureau of Investigation (FBI).

Watch the introduction here.

Read Senator Tillis’ statement below:

Chairman Grassley, Ranking Member Durbin and my colleagues on the Senate Judiciary Committee, it’s my honor to introduce Kash Patel, President Trump’s nominee to be FBI Director. I’ve completed due diligence on his life and career, and I’m convinced Kash possesses significant expertise and an ironclad commitment to justice. I have concluded he’s an outstanding choice to lead the FBI.

Kash’s parents are Indian immigrants of Gujarati ancestry. The Gujarat state is a melting pot of religions, including Hinduism, Islam, and Jainism, with temples, mosques, and other religious sites scattered across the state. His father was raised in Uganda, but his family fled the country to escape repression under Idi Amin. His mother was born and raised in Tanzania. They met and married in India and ultimately made their way to New York City by way of Canada, where his parents along with 7 brothers and sisters, their spouses, and at least a half dozen kids lived under the same roof. His parents raised Kash in the Hindu faith, and they instilled in him the values of hard work and education. Kash is a devout Hindu, and consistent with his faith, he has shown respect to people of all faiths.

Kash attended the University of Richmond, where he earned his bachelor’s degree in criminal justice and history. He went to Pace University School of Law, where he earned his JD and an International Law Certificate from the University College of London, Faculty of Laws.

Kash began his career as a public defender in Florida where he led or co-led more than 60 jury trials to verdict in state and federal courts. Kash has clearly demonstrated devotion to upholding the rule of law and defending the rights of individuals.

Kash led the defense of Jose Buitrago in United States v. Buitrago, a high-profile drug case in Florida in 2015. Buitrago was one of the Colombian nationals arrested in a major drug bust involving Operation BACRIM. Kash and his co-counsel successfully argued that key evidence was withheld by the prosecution, leading to Buitrago’s release. I suspect some of Kash’s disdain for prosecutorial misconduct stems from this firsthand experience.

Kash was hired as senior counsel on the House Permanent Select Committee on Intelligence in 2017. He told me he distinctly remembers my friend Trey Gowdy’s comment shortly after they were introduced. He said, “Kash, Congress is where righteous investigations go to die, I hope you’re ready.” Kash wasready and he went on to establish a solid reputation for pursuing the facts. From there, he held senior posts at the NSC, DoD, and DNI.

Since leaving the administration after 2020, Kash has written articles and books on national security, law, and governance. Through his work as an author, Kash continues to advocate for justice and transparency and to be ever vigilant in defending our great democracy and the rule of law.

Colleagues, I’ve created a Kash BINGO that is available to any of my colleagues who would like on the other side of the aisle. Some may view this as an unserious caricature and not appropriate for this committee, but sadly I consider it a serious caricature of what I expect to be witnessed today. I think we will have words like “enemies list” and “deep state”, but the fact of the matter is some people will be here to substantiate a false narrative. At worst, they may just be going through an unfounded litany of quote and half quote and half-truths, some that have already been dispelled in the Chairman’s opening statement.

In my 10 years in the Senate, I hope I have established a reputation for being fair, doing my homework, and taking tough positions that have been met with harsh criticism. Heck, I’ve been censured by my party for taking tough positions, and I stand by those positions today and my position to support Kash Patel.

When President Trump announced his intent to nominate Kash, I contacted Trey Gowdy and others who’ve worked with Kash, and they gave glowing recommendations. So, I called Kash on December 2^nd and offered to help with his nomination. Since then, we’ve spent hours together in person and on the phone.

I’ve asked him difficult questions and I’ve urged him to reach out to members across the aisle. He’s met with 60 members of the U.S. Senate, including several members of this committee.

Chair Grassley, Ranking Member Durbin, friends, and colleagues on the committee. I’ve completed my due diligence on Kash Patel, and I am honored to provide my strongest recommendation for his confirmation.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Senators Coons, Lankford introduce bill to incentivize charitable giving through tax code

US Senate News:

Source: United States Senator for Delaware Christopher Coons

WASHINGTON – U.S. Senators Chris Coons (D-Del.) and James Lankford (R-Okla.) reintroduced the Charitable Act to reward Americans who give to charity and incentivize more people to donate to worthy causes. Under this new bill, Americans who donate to charities, houses of worship, religious organizations, and other nonprofits of their choice would be able to deduct that donation from their federal taxes, even if they take the standard, non-itemized deduction.

A similar provision was first enacted in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which passed in 2020. As a result of that legislation, 90 million taxpayers benefitted from the deduction, and households making between $30,000 and $100,000 increased their charitable giving the most. Charitable organizations received $30 billion in increased donations.

“Delawareans have always risen to the occasion in support of our communities,” said Senator Coons. “Last year, Americans demonstrated our generosity by donating a collective $557 billion to charities, houses of worship, and nonprofits. I am proud to reintroduce the Charitable Act with Senator Lankford to help the federal government encourage even more Americans to embrace the civic virtue of giving to those in need.”

“America’s first safety net should never be the government—government is the least efficient caregiver by far. Our families, churches, and other nonprofits do incredible work to lift up those who need it most. Updating the tax law to incentivize giving empowers Americans to make an even bigger impact for the homeless, hurting, and hungry,” said Senator Lankford.

This bill is supported by numerous organizations, including The National Council of Nonprofits (25,000 member organizations), Charitable Giving Coalition (175 member organizations), the Nonprofit Alliance, Faith & Giving Coalition, Leadership 18, Independent Sector, YMCA, Council on Foundations, American Endowment Foundation, Philanthropy Southwest, Christian Alliance for Orphans, Ethics & Religious Liberty Commission, United Philanthropy Forum, National Association of Charitable Gift Planners, Association of Art Museum Directors, the Evangelical Council for Financial Accountability, Association of Fundraising Professionals, Council for Advancement and Support of Education, Americans for the Arts, American Heart Association, Oklahoma Center for Nonprofits, Delaware Alliance for Nonprofit Advancement, Maryland Nonprofits, Boys and Girls Club of America, March of Dimes, and Habitat for Humanity.

In addition to Senators Coons and Lankford, the Charitable Act is supported by Senators Catherine Cortez Masto (D-Nev.), John Hickenlooper (D-Colo.), Pete Ricketts (R-Neb.), Amy Klobuchar (D-Minn.), Raphael Warnock (D-Ga.), Jeanne Shaheen (D-N.H.), John Curtis (R-Utah), Marsha Blackburn (R-Tenn.), Jerry Moran (R-Kan.), Katie Britt (R-Ala.), and Tim Scott (R-S.C.).

“Nonprofits are the backbone of our communities, addressing critical needs and enhancing the quality of life for all. The Charitable Act is a vital step in restoring a proven incentive that encourages generosity and empowers nonprofits to meet growing demands, even in challenging times. We applaud Senators Lankford and Coons for their leadership and steadfast commitment to strengthening the nonprofit sector, ensuring we can continue to deliver essential services and drive positive change,” said Sheila Bravo, President and CEO, Delaware Alliance for Nonprofit Advancement.

“Bravo to Senators Lankford and Coons on this much-needed support for America’s nonprofits. They both understand from personal experience the key role the nonprofit sector plays both as a provider of critical services to millions of Americans and as a major employer in Oklahoma and nationwide. In this era of historic inflation and ever-rising costs, the need for nonprofit services has not declined—in fact, we are needed more than ever. The Charitable Act will help recreate an environment of years past where charitable givers at every level can feel incentivized and appreciated—after all, we are all in this together,” said Marnie Taylor, President & CEO, Oklahoma Center for Nonprofits.

“Faith & Giving heartily thanks and commends Senators James Lankford and Chris Coons for reintroducing the Charitable Act to restore a charitable deduction for taxpayers who do not itemize. Giving by individuals is the financial lifeblood of many thousands of American faith communities and faith-based organizations. Yet since 2017 individual giving to religion has fallen billions of dollars short of keeping pace with inflation. No single policy is more important for restoring the health of individual giving and faith-based charities than a non-itemizer charitable deduction like the one Congress created to stimulate giving in 2020 and 2021,” Brian Walsh, Executive Director, Faith & Giving.

“Nonprofits need tools like the nonitemizer deduction proposed by the Charitable Act to meet growing and changing community needs,” said YMCA of the USA President and CEO Suzanne McCormick. “We saw this policy unlock more giving when it was enacted temporarily during the pandemic, and we know that making it permanent will help YMCAs serve and support more neighbors every day. Senators Lankford and Coons recognize the important role nonprofits play in communities and understand that the universal charitable deduction helps nonprofits like the Y make their communities stronger. I’m grateful for their leadership.”

“The temporary non-itemizer charitable deduction implemented in 2020 and 2021 led to an additional $18 billion in donations to nonprofits. As nonprofits are faced with higher demand for services, increased costs, workforce challenges, and declining donations, the Charitable Act presents an opportunity to reinstate that incentive and provide nonprofits with more resources to carry out their mission. The networks of the National Council of Nonprofits enthusiastically endorse this vital legislation and appreciate leaders like Senator Lankford and Senator Coons who continue to be stalwart champions for these efforts and the nonprofit sector,” said Diane Yentel, President & CEO, National Council of Nonprofits.

“Generosity is a core American value that should be incentivized to help meet the evolving needs of communities,” said Kathleen Enright, Council on Foundations President and CEO. “The temporary non-itemizer deduction in the CARES Act successfully sparked more people to give. We hope Congress will cement this effective policy into law and inspire many more generous Americans to give charitably to support one another and the causes they value. We thank the House and Senate sponsors of the Charitable Act for their leadership on this issue.”

For quotes from other organizations and non-profit leaders, please click here.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Under questioning from Senator Coons, FBI Director nominee Patel refuses to assert FBI’s independence or demonstrate willingness to resign over illegal directives

US Senate News:

Source: United States Senator for Delaware Christopher Coons

WASHINGTON – U.S. Senator Chris Coons (D-Del.) questioned President Donald Trump’s nominee for FBI Director, Kash Patel, at his Senate Judiciary Committee confirmation hearing today, where he pressed him on whether his allegiance to President Trump would mean the end of the Bureau’s independence and whether he’d resign if asked by the White House to do something illegal.

Senator Coons pressed Patel on several issues at the hearing today. Under questioning, Patel stated that, as FBI Director, he would answer to the President. In contrast, Attorney General nominee Pam Bondi said that, if confirmed, she would answer directly to the Constitution and the American people.

Senator Coons also asked Patel, as he asked FBI Directors Chris Wray and James Comey during their own confirmations, about whether Patel would resign rather than carry out an illegal order from Trump, as Wray and Comey committed to doing. Patel repeatedly refused to make the same commitment.

A video and full transcript of Senator Coons’ comments are available below.

WATCH HERE.

Sen. Coons: We had a constructive conversation last week, I appreciate your taking the time. In particular, a conversation about the prosecution of the World Cup bombing in Uganda that took the life of a Delawarean whose family I knew, I found moving. But the role you have been nominated for is central – central to our security as a nation, central to the protection of our constitutional rights, and I voted to confirm Trump’s previous FBI director, Chris Wray. I believe he’s lived up to the bureau’s motto of serving with fidelity, bravery and integrity, and I also think my vote for him and for many of Trump’s cabinet in the first term shows I take my constitutional advice and consent rule seriously and do not reflexively vote against his nominees.

I look at three factors when I assess a nominee. Qualifications and experience; policy views and whether they are in the best interest of the American people; and character and capacity to do the job independently where called for. My colleagues have referenced quotes from Attorney General Barr, National Security Advisor Bolton.

The FBI is enormous: 38,000 agents, $9 billion budget. I am troubled by your lack of senior law enforcement leadership. We disagree on some important policy views. But the thing that bothers me the most is a whole series of statements you have made in a variety of settings that suggest you would struggle to be independent from White House direction or control, as has long been the modern history of the FBI.

Who does the director of the FBI work for, Mr. Patel?

Mr. Patel: Senator, thank you for that question. The immediate report for the Director of the FBI is into the Office of the Deputy Attorney General. Then, that report is taken into the Office of the Attorney General and ultimately the White House in the chain of command there.

Sen. Coons: So the FBI works for the White House?

Mr. Patel: No, the FBI is a member of the Department of Justice, and has been the long-standing application—

Sen Coons: And who does the Department of Justice work for?

Mr. Patel: They are in the executive branch, as all members do at the White House.

Sen. Coons: Attorney General Bondi gave a different answer when I asked her the same question— that they work for the Constitution and the American people. President Trump has made clear in public statements he wants to use the FBI to persecute political adversaries. He has publicly said that folks ranging from Liz Cheney, to Adam Kinzinger, to former Vice President Harris should be investigated and criminally prosecuted. If President Trump were to order you to open an investigation into any of these individuals, let’s say, Vice President Harris, would you?

Mr. Patel: Senator, this question speaks directly to my ability to leave political bias and allow independent behavior to be the only guiding light. As a public defender, I learned that in the harshest of arenas. And any law enforcement investigation, if I’m confirmed at the FBI, will only be launched on the following qualification: a factual, articulatable, legal basis to do so. The president has said publicly that he will allow the FBI to remain independent, and I have said as much as well.

Sen. Coons: So, if FBI agents brought to you a factual legal basis, a predication, and you are about to refer it to a prosecutor, and you get a call from the White House saying, “don’t proceed, this is a major donor, this is someone close to the president, this is inappropriate.” What would you do?

Mr. Patel: Simple. You – I think you answered it partially in your, in your question. The line agents, the brick agents who are trained to bring investigations on behalf of the FBI will make that decision-making process, and they will only have my full support so long as it upholds absolutely every value of the Constitution, and that’s it.

Sen. Coons: So your predecessor – I went back and looked, and I asked the same questions of Director Comey and Director Wray. Director Wray, quoting former Attorney General Bell, said you should be willing to resign if necessary over conduct if you are pressed to engage in it that’s unethical, illegal or unconstitutional. If pressed by the president, would you resign?

Mr. Patel: Senator, my answer simply is I would never do anything unconstitutional or unlawful, and I never have in my 16 years of government service.

Sen. Coons: Would you be willing to resign the post of FBI Director if pressed and given no choice but to obey the order or resign?

Mr. Patel: Senator, I will always obey the law.

Sen. Coons: Does obeying the law require you to – as Attorney General Bell said, as FBI Director Wray said – refuse the order or resign?

Mr. Patel: I don’t – I’m not familiar with the extent of the law you are referring to, but my answer is simple in my 16 years of government service. We will simply follow the law, and I have done that in Obama Justice Department [sic], Republican Justice Departments, in the Obama military, in Republican civilian capacity. I have never once wavered from my constitutional oath of office.

Sen. Coons: Mr. Patel, your predecessors in this role have been clear that they would be willing to resign if forced or directed to do something unethical or illegal. I’ll proceed.

One of your past statements that is concerning me – it’s both a post on Truth Social and something you said in a podcast, The Sean Morgan Report: that your predecessor, Chris Wray, has broken the law. We need to prosecute him. The FBI should go after people like him. And the month before this, in July 2023, you said there should be a criminal referral for FBI Director Wray. If confirmed, are you going to follow through on these previous statements that Director Wray needs to be prosecuted?

Mr. Patel: Senator, this reminds me of the conversation you and I had, which I greatly appreciated. There is enough violent crime in this country, and enough national security threats to this country, that the FBI is going to be busy going forward preventing 100,000 overdoses, 100,000 rapes, and 17,000 homicides.

Sen. Coons: We agree that prosecuting violent crimes should be the principal focus of the FBI. What I’m trying to get to, Mr. Patel, is a whole series of very troubling – to me and many others – statements you’ve made about instead using it to pursue those who might be viewed as political opponents.

Mr. Patel: And as I told you in your office, I have no interest, no desire, and will not if confirmed, go backwards. There will be no politicization at the FBI, there will be no retributive actions taken by any FBI, should I be confirmed as the FBI director. I told you that in your office, and I will tell you that again today.

Sen. Coons: Thank you for that statement. As the Co-chair of the Law Enforcement Caucus with Senator Cornyn, one of the things I’ve worked hard on and I hope to continue to being able to work hard on with this administration is partnership between federal, state, and local law enforcement to pursue violent crime. You did say, as my colleague asked, and I’d look for a longer answer, that you want to close the FBI’s bureau headquarters on day one.

How would shutting down the FBI headquarters impact its ability to prosecute violent crime and drug traffickers? How is that possibly a serious proposal, Mr. Patel?

Mr. Patel: Thank you for bringing that up and allowing me to answer. It was to highlight the significantly greater point that I was actually making in that interview, which is well documented over and over again. 38,000 FBI employees – 7,500 FBI employees work in the Washington field office and Hoover Building alone. If you increase the aperture just slightly to encompass the National Capital Region, that is 11,000 FBI employees working in the National Capital Region. A third of the workforce for the FBI works in Washington, D.C. I am fully committed to having that workforce go out into the interior of the country where I live, west of the Mississippi, and work with sheriff’s departments and local officers and having one agent prevent one homicide and having one agent in Washington prevent one rape, and I will do that over and over and over again, because the American people deserve the resources not in Washington D.C., but in the rest of the country.

Sen. Coons: And Mr. Patel, frankly, if that had been your statement, that would be something that would be defensible. It’s the rest of it, saying you’re going to turn it into a Museum of the Deep State, that causes repeated questions and concerns from people like myself. Thank you, Mr. Patel.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Luján, Wyden, Finance Democrats Press RFK Jr. to Reject Big Pharma Pause on Medicare Negotiation

US Senate News:

Source: United States Senator Ben Ray Luján (D-New Mexico)

Following Noncommittal Answer in Committee and Statement by CMS, Finance Democrats Press for Commitment to Continuing Medicare Drug Price Negotiation on Schedule

Washington, D.C. – U.S. Senator Ben Ray Luján (D-N.M.), Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), and all Democratic members of the Senate Committee on Finance sent a letter to Robert F. Kennedy Jr. pressing him to answer nearly a dozen questions regarding his views on Medicare drug price negotiation and confirm he will not pause negotiations, as CEOs representing the largest pharmaceutical companies have requested.

“As a result of the Inflation Reduction Act, which passed without a single Republican vote, Medicare drug price negotiation is a powerful tool available right now to President Trump to make good on his long-standing promise to stand up to Big Pharma,” the Senators wrote. “On behalf of the tens of millions of Americans who count on Medicare, Democrats on the Senate Finance Committee want to know whether the Trump Administration will follow through on negotiating with Big Pharma to deliver the lower costs promised to the American people.”

The letter, sent to Kennedy in his capacity as the nominee to be secretary of the Department of Health and Human Services (HHS), asks whether he will follow the Inflation Reduction Act’s statutory requirements related to Medicare drug price negotiation, whether the Trump administration will continue to defend the law in court against attacks by Big Pharma, and other questions. Yesterday, the Centers for Medicare & Medicaid Services (CMS) released a concerning statement that appeared to open the door to Big Pharma’s requests.

“Contrary to what you suggested in today’s hearing, the Trump Administration’s statement is far from an embrace of drug price negotiation and appears to be opening the door to changes that could undermine Medicare’s ability to get the best price possible on drugs,” the Senators continued.

The full letter can be found here.

MIL OSI USA News –

January 31, 2025

MIL-OSI United Nations: DR Congo: Hospitals overwhelmed, food running out: Goma faces ‘devastation’

Source: United Nations 4

30 January 2025 Peace and Security

After days of intense fighting, the humanitarian situation in Goma, capital of the eastern Democratic Republic of the Congo (DRC), has reached alarming levels – with humanitarian needs now massive and response capacities severely strained.

The World Food Programme (WFP) warned on Thursday that food supplies are running dangerously low, as water and electricity outages exacerbate the crisis.

The seizure and closure of Goma’s airport by Rwanda-backed M23 rebels has further interfered with aid delivery, while the blocking of roads and lake transport restrictions have left thousands stranded.

The rebel group has taken control of most of Goma since entering the city on Monday in the biggest escalation of a decades-long conflict springing from the Rwandan genocide against the Tutsis, and a continuing struggle for control of rich mineral resources in the region among a plethora of armed groups.

Fleeing by boat

Families attempting to flee the violence across Lake Kivu are resorting to unsafe makeshift boats, putting their lives at risk.

At the same time, the UN aid coordination office, OCHA, reports that humanitarian workers have been unable to leave their shelters in Goma for over 24 hours due to the insecurity, severely affecting emergency response efforts.

Tom Fletcher, the emergency relief chief, has allocated $17 million from the UN’s Central Emergency Relief Fund (CERF) to support lifesaving assistance – yet access to those in need remains uncertain.

Hospitals overwhelmed

Medical facilities in Goma – and second city Bukavu to the south – are overwhelmed, with over 2,000 injuries reported since the beginning of January, including many from gunshot wounds. Hospitals lack adequate medical supplies, fuel and staff to manage the growing influx of patients.

The World Health Organization (WHO), International Committee of the Red Cross (ICRC), and Médecins Sans Frontières (MSF) are urgently working to bolster healthcare services, but with supply chains disrupted and facilities at capacity, response efforts are severely strained.

Additionally, health authorities warn of an increasing risk of disease outbreaks, including cholera, measles and mpox, due to mass displacement, unsafe water sources and inadequate sanitation.

Escalating insecurity in North Kivu

In the village of Kiziba, on the outskirts of Goma, civilians are reporting armed men in military uniforms carrying out widespread looting, extortion and sexual violence, according to Radio Okapi, the station run by UN peacekeeping mission in DRC, MONUSCO.

Meanwhile, Stéphane Dujarric, the Secretary-General Spokesperson reported that other armed groups in the east, including Zaïre and the CODECO militias, have increased attacks against the population in Djugu territory in the past month, robbing civilians.

At least six people have been killed since last weekend and as a result, many have stopped using roads in the area, which also prevents them from going to their fields or to markets.

Reports indicate that some roads have reopened, but mass displacement continues, with at least 700,000 people now internally displaced within North Kivu and South Kivu.

MONUSCO/Aubin Mukoni

Military uniforms and personal possessions litter the streets of Goma in the eastern DR Congo following an attack by a rebel armed group.

Peacekeepers’ response

Peacekeepers with (MONUSCO) have launched the second phase of an operation called Horizon of Peace in Djugu territory, aiming to contain an escalation of violence by armed groups, according to Mr. Dujarric.

MONUSCO peacekeepers have stepped up patrols on several roads in the territory to support the free movement of people and goods.

Calls for international action

Bruno Lemarquis, the UN’s Humanitarian Coordinator for DR Congo, has issued a strong plea for immediate international support. “I call on the international community to step up its support in the face of a worsening humanitarian crisis,” he stated.

Emergency food agency WFP has reiterated its readiness to resume food distributions as soon as security conditions permit, but without immediate access, thousands remain at risk of starvation and disease.

MONUSCO/Aubin Mukoni

UN peacekeepers return to base after patrolling the streets of Goma.

MIL OSI United Nations News –

January 31, 2025

MIL-OSI USA: 25+ Years of National Recognition for Diabetes Education

Source: US State of Connecticut

The American Diabetes Association recognizes UConn Health’s Diabetes Self-Management Education Program for offering high-quality education for patient self-care and support services.

Luriza Glynn, nurse practitioner and UConn Health’s Diabetes Self-Management Education Program cooridnator (right), speaks with a patient about her insulin pump. (2019 file photo by Chris DeFrancesco)

The recertification under ADA’s Education Recognition Program is in recognition of the educational services at UConn Health meeting the ADA’s national standards for diabetes self-management education programs.

“This recognition is a testimony of the dedication to clinical excellence and in patient-centered delivery of care,” says Dr. Francisco Celi, endocrinologist and chair of the UConn School of Medicine’s Department of Medicine. “Our diabetes educators provide an invaluable contribution to the care of our patients, enabling to develop a truly personalized holistic care plan which include lifestyle modifications, dietary education, and effective use of the medications. Very often our diabetes educators uncover unrecognized barriers which prevent the optimal management of diabetes. By addressing these challenges we can be more effective in treating patients living with diabetes.”

Dr. Parvathy Madhavan, one of UConn Health’s endocrinologists who specializes in diabetes, meets with a patient. (Tina Encarnacion/UConn Health Photo)

ADA-recognized programs provide evidence-based and outcome-driven intervention and ensure a staff of knowledgeable health professionals will teach participants self-care skills that will promote better management of their diabetes treatment regimen, covering the following topics:

Diabetes disease process
Nutritional management
Physical activity
Medications
Monitoring
Preventing, detecting, and treating acute complications
Preventing, detecting, and treating chronic complications through risk reduction
Goal setting and problem solving
Psychological adjustment
Preconception care, management during pregnancy, and gestational management

Dr. Pooja Luthra specializes in diabetes and metabolism, endocrine neoplasia, endocrinology, and osteoporosis at UConn Health. (Tina Encarnacion/UConn Health photo)

“Empowering lives, one step at a time,” says Dr. Pooja Luthra, endocrinologist and physician lead of UConn Health’s Diabetes Self-Management Education Program. “We are proud to be recognized by the American Diabetes Association for our commitment to excellence in diabetes education. Together, we make a difference.”

UConn Health’s program has earned this distinction continuously since its first ADA recognition in 2000.

“For 25 years, UConn Health’s ADA-recognized diabetes education program has been a cornerstone of support, guidance, and empowerment for individuals managing diabetes,” says Luriza Glynn, nurse practitioner and program coordinator. “This milestone reflects UConn Health’s unwavering commitment to providing high-quality, evidence-based education that improves lives. As we celebrate this achievement, we honor the dedication of our educators, the resilience of our patients, and the continued innovation that drives us forward. Here’s to 25 years of impact and many more to come!”

Many of those who care for people with diabetes at UConn Health during Diabetes Awareness Month November 2023 (Photo provided by Luriza Glynn)

Barbara Eichorst, the ADA’s vice president of health programs, says, “Diabetes self-management education and support (DSMES) is an essential part of managing diabetes and is as effective as diabetes medication. Therefore, all people with diabetes benefit from it. We applaud UConn Health’s Diabetes Self-Management Education Program for its commitment to providing value-based interventions such as DSMES, maximizing corresponding outcomes, and patient experience.”

“This is a major accomplishment and the standards required by the American Diabetes Association are high,” says Anne Horbatuck, chief operating officer of the UConn Medical Group and vice president for ambulatory operations. “This honor demonstrates the quality, dedication, and hard work by the leaders, Dr. Pooja Luthra and Luriza Glynn, APRN, diabetes education coordinator, and the whole team. This program has had huge success improving patient outcomes and providing education to our patients to better manage their diabetes and improve their overall health.”

Learn more about diabetes care at UConn Health.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: UConn Cancer Center Provides Free Screenings at UConn Huskies Coaches vs. Cancer Game

Source: US State of Connecticut

Imagine discovering cancer early—potentially saving your life—simply because you attended a basketball game where cancer screenings were offered.

That would be an incredible story a powerful reminder of how important outreach events can be. Early cancer detection dramatically improves survival rates, and offering screenings in unexpected but accessible places, like a sports arena, breaks down barriers for people who might not otherwise seek care.

Lauren Rondinone, Dr. John Birk, Stephanie McGinn, Allison Rinaldi, Jillian Fal from gastroenterology.

On Wednesday, January 29, as thousands of UConn Huskies fans filed into the XL Center in Hartford, Connecticut to watch the men’s basketball team take on DePaul, they probably weren’t thinking about cancer. However, as the official healthcare provider of UConn Athletics, UConn Health teamed up for the annual Coaches for Cancer game to provide fans with free education and access to cancer screenings.

Coaches vs. Cancer is a nationwide initiative that empowers basketball coaches, their teams and their local communities to make a difference in the fight against cancer. The main goal is to increase cancer awareness, promote healthy living, and fundraise through activities.

Jessica Santos-Martinez, Rosa Agosto and Maggie Donohue helped fans navigate questions about breast cancer and mammograms

“It’s not just about the medical aspect; it’s about meeting people where they are and creating opportunities for proactive health care. This kind of initiative combines community engagement with life-saving interventions—it’s a win for all,” says Omar Ibrahim, director of Interventional Pulmonary at UConn Health.

Before the doors opened at 6:30 p.m., where fans would find Andrea Hurley, wife of head coach Dan Hurley, creating memorial buttons to wear during the game, doctors, medical students, and residents from UConn Dermatology and the Carole and Ray Neag Comprehensive Cancer Center at UConn Health (Cancer Center) offered skin cancer screenings in the XL Center Atrium.

Once in the arena, doctors and medical professionals were on hand to provide information about colon, lung and breast cancer while determining the need for potential screenings. Fans were encouraged prior to and during the game to take the opportunity to learn more about cancer prevention and protecting their health.

Dr. Philip Kerr, Seda Gul Sahin, James Mackenzie, Tim Klufas, Aziz Khan, Sueheidi Santiago, Tannaz Sedghi, Sonal Muzumdar, Lauren Skudalski

“Regular cancer screenings are crucial for early detection, significantly increasing the chances of successful treatment and survival by identifying cancers before they develop symptoms, allowing for timely intervention and potentially life-saving care,” says Kim Hamilton, program coordinator, Community Outreach and Engagement at the Cancer Center.

Kateri of Southbury emphasized the importance of events like this in raising awareness, sharing that early detection allowed her to receive treatment and reach one year in remission. “After my diagnosis, I made it my mission to spread awareness—that’s why events like this matter.”

“The Community Outreach and Engagement team at the Carole and Ray Neag Comprehensive Cancer Center was thrilled to join Andrea Hurley’s cancer screening initiative at the Coaches vs. Cancer game. Hundreds of fans and staff stopped by for information and to schedule screenings for skin, lung, breast, and colon cancer. We’re proud to be the official healthcare provider of the UConn Huskies,” said Julie Dudek, academic administrative manager, Cancer Center.

“UConn Health’s Cancer Center was excited to partner with UConn Athletics and Andrea Hurley to provide cancer screening education and skin cancer checks at the American Cancer Society Coaches vs Cancer game. We look forward to continuing this partnership with Mrs. Hurley and at other UConn Athletics sporting events,” says Hamilton.

MIL OSI USA News –

January 31, 2025

MIL-OSI USA: Teamwork is also Behind the Scenes at UConn Health

Source: US State of Connecticut

When you are expecting to have a surgery, the Central Sterile Processing Department and its dozens of staffers are preparing behind the scenes all the tools that are needed by your surgeons and for you too! Preparations even start the night before at the UConn Health Surgery Center as well as the UConn John Dempsey Hospital’s OR.

In fact, Central Sterile is “central” to the operating room and a procedure’s safety and success. All medical and surgical supplies, both sterile and nonsterile, are cleaned, prepared, processed, stored, and issued for patient care by this Department.

Volodymyr Levytskyy, assistant supervisor of Central Sterile, sterilizing the prepared instrument cases for use in surgery and procedures at UConn Health (January 9. 2025. Tina Encarnacion/UConn Health Photo).

The Department is home to three huge washers, four sterilizers, and hundreds of instruments that need to be processed daily for approximately twenty-five operations occurring each day.

All surgical instruments and tools are washed after each surgery to be decontaminated by hand, washed in the washer disinfectors, hand assembled, wrapped, and labeled by staffers before finally being placed in the sterilizers.

The Department services not only the operating rooms needs, but also urgent care centers around the State of Connecticut, UConn Health’s vast outpatient care facilities, and even the UConn dental school’s clinics.

A new digital system called T Doc has recently launched to replace the long standing, traditional paper tracking process for surgical instruments. It is further enhancing UConn Health’s regulatory compliance and tracking of instruments. Instruments can now be scanned to identify when they have been sterilized, what sterilization parameters were used and where the item should be stored after sterilization.

“Central Sterile is one of the most highly regulated areas of a health system,” stresses Ellen Benson, RN associate director of Procedural Services and manager of the Sterile Processing Department at UConn Health. All instruments are tracked to ensure sterility, the rooms are monitored to ensure that they maintain the correct temperature and humidity for storing instruments and even the water supply is closely monitored.

Ryley Finn, with fellow instrument tech Elzbieta Brzostek-Parciak, and supervisor Minnie Torres (January 9, 2025. (Tina Encarnacion/UConn Health Photo).

“It’s all about patient safety,” says Benson. “Patient safety all starts with Central Sterile ensuring that instruments are cleaned and sterilized properly; the first step in helping to prevent surgical site infections. It takes a village. No surgery can be performed without the instruments. Without the Central Sterile team, we just can’t do surgery.”

The instrument techs know the ins and outs about all the instruments used across the surgical specialties, and are constantly learning about new tools and their individual required cleaning and sterilization processes.

“I always see the instrument techs reaching out to each other for advice, sharing knowledge, and helping each other. It’s true teamwork!” says Benson. “They work so hard!”

Benson has been in health care for 42 years and has spent the last 35 years at UConn Health inside the operating rooms.

“It’s a huge team effort across the board in the OR. There are a lot of people supporting our patients behind the scenes for their journey in the operating room. Our volume has increased significantly over the years. We have never been busier than we are today.”

She adds, “It takes many people to get a patient through surgery. We have doctors, nurses, surgical techs and other support staff all working together for the patients.”

From X-ray, the blood bank, to the labs – the team is very tightly woven with everyone across the hospital.

T Doc, a new digital system for tracking surgical instruments, has successfully launched (January 9. 2025. Tina Encarnacion/UConn Health Photo).

Additionally, there is always the unexpected for the Central Sterile team to handle.

“We get a lot of patients from the ED who may need surgery urgently, patients experiencing a stroke, appendicitis, or a herniated disc. They come straight to us, we get ready quickly and we take good care of them!” says Benson.

Benson and her team know that when patients come to the hospital for care, it can be one of the most vulnerable times in their life. Some surgeries are elective, and they are able to “cure” their problem and send them home, others are diagnosed with illness that require additional care.

“We are here to support our patients and their families, who are waiting, hoping, and worrying. Spending a few minutes with family members goes a long way to make them feel more at ease. It’s amazing what 5 minutes of your time, and offering a piece of candy or a drink of water can do for a family member to make them feel comforted,” says Benson.

Minnie Torres of Harwinton has worked for UConn Health for 16 years. She worked her way up from an instrument tech in the Department to now supervisor of Central Sterile the last four years.

“It’s very rewarding to work in Central Sterile. I’m very proud of the work we do. Also, the people I work with at UConn Health make it worth while too. We cheer each other on,” says Torres.

“Everyone in Central Sterile comes together as a fast-paced team each day and jumps in to help and get everything washed, sterilized, and processed. Our work is tedious but exciting. At the end of the day our jobs are very fulfilling as we are making a true difference in the lives of others.”

Torres adds, “When people hear you work at UConn, they are wowed. They know we work hard, and we hit the ground running every day.”

Central Sterile has a family-like atmosphere. Ryley Finn, Elzbieta Brzostek-Parciak, and Minnie Torres (January 9, 2025. Tina Encarnacion/UConn Health Photo).

Ryley Finn of Farmington has served as an instrument tech in the Department for the last two years.

“I wanted to learn, so I came to work here at UConn Health,” says Finn. “I really like it here and I like my colleagues. I am always learning new things.”

Finn loves the opportunity she and her colleagues at UConn Health have to watch surgeries and the instruments used in action to get a full picture of the OR process and to better understand how each instrument they prepare for use works.

“To see how the tools work in action is really cool and how we play a critical role to help patients during surgery,” says Finn.

To keep up with the growing patient volumes and demands for UConn Health clinical and surgical services soon Central Sterile will be moving toward a 24/7 operation. UConn Health is renovating the older Connecticut Tower space of the department and the team is looking forward into moving back into that space.

“I am so proud of the Central Sterile team,” says Benson. “We have the best team.”

“That’s Mom,” Torres and Finn heartwarmingly refer to Benson as.

“My colleagues are my family too. We will always be there to support each other,” says Benson.

Thank you Central Sterile for all you do!

This content is part of a collaborative initiative of the Office of Diversity and Inclusion, with UConn Health’s Chief Diversity Officer Dr. Jeffrey Hines, to celebrate the institution’s shared values and its workforce. Send your word-of-the-month nominations to thehub@uchc.edu

MIL OSI USA News –

January 31, 2025

	Month	Quarter	Annual	From post-COVID peak	From 2024 mini peak	From pre-COVID levels	Median value
Aotearoa New Zealand	-0.1%	-0.3%	-4.3%	-17.5%	-4.5%	16.3%	$803,819
Tāmaki Makaurau Auckland	-0.1%	-0.3%	-6.5%	-22.1%	-6.5%	8.5%	$1,069,140
Kirikiriroa Hamilton	0.5%	1.6%	-1.6%	-12.0%	-1.7%	20.0%	$748,944
Tauranga	0.1%	0.5%	-3.6%	-17.1%	-3.8%	21.1%	$904,920
Te-Whanganui-a-Tara Wellington*	-0.6%	-1.7%	-7.4%	-25.1%	-8.5%	4.8%	$790,007
Ōtautahi Christchurch	-0.1%	-0.1%	0.0%	-6.8%	-1.1%	41.0%	$661,721
Ōtepoti Dunedin	0.1%	0.1%	0.9%	-10.8%	-1.2%	11.1%	$611,677

	Month	Quarter	Annual	From post-COVID peak	From 2024 mini peak	From pre-COVID levels	Median value
Rodney	-0.5%	-1.8%	-7.0%	-21.5%	-7.1%	14.3%	$1,216,586
Te Raki Paewhenua North Shore	0.3%	0.8%	-3.6%	-18.0%	-3.6%	10.1%	$1,291,965
Waitakere	0.0%	0.7%	-5.1%	-23.8%	-5.1%	7.4%	$942,671
Auckland City	-0.1%	-0.8%	-8.1%	-23.1%	-8.1%	4.1%	$1,131,326
Manukau	0.0%	0.0%	-6.4%	-22.9%	-6.4%	12.1%	$1,014,115
Papakura	-0.4%	-0.9%	-7.2%	-23.4%	-7.5%	12.6%	$815,455
Franklin	-0.3%	-0.5%	-5.8%	-22.7%	-5.8%	16.3%	$900,200

Category: Transport

Source: PSA

Source: Straterra Inc

Source: Fire and Emergency New Zealand

Source: Fire and Emergency New Zealand

Fleeing by boat

Hospitals overwhelmed

Escalating insecurity in North Kivu

Peacekeepers’ response

Calls for international action