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HOME BANCORP, INC. ANNOUNCES 2024 THIRD QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 4%

18.10.2024 by admin

LAFAYETTE, La., Oct. 17, 2024 /PRNewswire/ — Home Bancorp, Inc. (Nasdaq: “HBCP”) (the “Company”), the parent company for Home Bank, N.A. (the “Bank”) (www.home24bank.com), reported financial results for the third quarter of 2024. For the quarter, the Company reported net income of $9.4 million, or $1.18 per diluted common share (“diluted EPS”), up $1.3 million from $8.1 million, or $1.02 diluted EPS, for the second quarter of 2024.

“We are pleased with the financial results for the current quarter,” said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “While loan growth has slowed from second quarter, deposit growth continues to improve reducing our loan to deposit ratio down to 96%. Our net interest margin remains strong at 3.71% and continued to move upward through the quarter.”

Third Quarter 2024 Highlights

Loans totaled $2.7 billion at September 30, 2024, up $6.9 million, or less than 1%, (an increase of 1% on an annualized basis) from June 30, 2024.
Deposits totaled $2.8 billion at September 30, 2024, up $54.6 million, or 2% (8% on an annualized basis), from June 30, 2024.
Net interest income in the third quarter of 2024 totaled $30.4 million, up $989,000, or 3% from the prior quarter.
The net interest margin (“NIM”) was 3.71% in the third quarter of 2024 compared to 3.66% in the second quarter of 2024.
Nonperforming assets totaled $18.4 million, or 0.53% of total assets, at September 30, 2024 compared to $17.0 million, or 0.50% of total assets, at June 30, 2024.
The Company recorded a $140,000 provision to the allowance for loan losses in the third quarter of 2024, compared to a $1.3 million provision in the second quarter of 2024.
Net loan charge-offs were $74,000 for the third quarter of 2024, compared to net loan charge-offs of $510,000 during the second quarter of 2024. Annualized year-to-date net loan charge offs to average loans was 0.04%.

Loans

Loans totaled $2.7 billion at September 30, 2024, up $6.9 million, or less than 1%, from June 30, 2024. The following table summarizes the changes in the Company’s loan portfolio, net of unearned income, from June 30, 2024 through September 30, 2024.

*(dollars in thousands)*	9/30/2024	6/30/2024	Increase (Decrease)
Real estate loans:
One- to four-family first mortgage	$ 502,784	$ 446,255	$ 56,529	13 %
Home equity loans and lines	80,935	70,617	10,318	15
Commercial real estate	1,143,152	1,228,757	(85,605)	(7)
Construction and land	329,787	328,938	849	—
Multi-family residential	169,443	126,922	42,521	34
Total real estate loans	2,226,101	2,201,489	24,612	1
Other loans:
Commercial and industrial	412,753	427,339	(14,586)	(3)
Consumer	29,432	32,518	(3,086)	(9)
Total other loans	442,185	459,857	(17,672)	(4)
Total loans	$ 2,668,286	$ 2,661,346	$ 6,940	— %

The average loan yield was 6.43% for the third quarter of 2024, up 15 basis points from the second quarter of 2024. Loans grew in the third quarter of 2024 across most of our markets, with New Orleans and Houston leading the net growth.

Credit Quality and Allowance for Credit Losses

Nonperforming assets (“NPAs”) totaled $18.4 million, or 0.53% of total assets, at September 30, 2024, up $1.3 million, or 8%, from $17.0 million, or 0.50% of total assets, at June 30, 2024. The increase in NPAs during the third quarter of 2024 was primarily due to two loan relationships which were put on nonaccrual during the third quarter of 2024. During the third quarter of 2024, the Company recorded net loan charge-offs of $74,000, compared to net loan charge-offs of $510,000 during the second quarter of 2024.

The Company provisioned $140,000 to the allowance for loan losses in the third quarter of 2024. At September 30, 2024, the allowance for loan losses totaled $32.3 million, or 1.21% of total loans, compared to $32.2 million, or 1.21% of total loans, at June 30, 2024. Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

The following tables present the Company’s loan portfolio by credit quality classification as of September 30, 2024 and June 30, 2024.

	September 30, 2024
*(dollars in thousands)*		Pass	Special Mention	Substandard	Total
One- to four-family first mortgage		$ 494,180	$ 859	$ 7,745	$ 502,784
Home equity loans and lines		80,729	—	206	80,935
Commercial real estate		1,125,331	—	17,821	1,143,152
Construction and land		323,751	308	5,728	329,787
Multi-family residential		168,513	—	930	169,443
Commercial and industrial		409,388	1,248	2,117	412,753
Consumer		29,302	—	130	29,432
Total		$ 2,631,194	$ 2,415	$ 34,677	$ 2,668,286

	June 30, 2024
*(dollars in thousands)*		Pass	Special Mention	Substandard	Total
One- to four-family first mortgage		$ 437,753	$ 1,417	$ 7,085	$ 446,255
Home equity loans and lines		70,394	—	223	70,617
Commercial real estate		1,207,421	3,469	17,867	1,228,757
Construction and land		324,729	310	3,899	328,938
Multi-family residential		125,689	65	1,168	126,922
Commercial and industrial		423,673	1,493	2,173	427,339
Consumer		32,273	—	245	32,518
Total		$ 2,621,932	$ 6,754	$ 32,660	$ 2,661,346

Investment Securities

The Company’s investment securities portfolio totaled $421.8 million at September 30, 2024, an increase of $8.3 million, or 2%, from June 30, 2024. At September 30, 2024, the Company had a net unrealized loss position on its investment securities of $32.2 million, compared to a net unrealized loss of $46.6 million at June 30, 2024. The Company’s investment securities portfolio had an effective duration of 3.7 years and 4.0 years at September 30, 2024 and June 30, 2024, respectively. During the third quarter of 2024, the Company made securities purchases of $4.9 million. No other purchases or sales of securities were made during the year.

The following table summarizes the composition of the Company’s investment securities portfolio at September 30, 2024.

*(dollars in thousands)*	Amortized Cost	Fair Value
Available for sale:
U.S. agency mortgage-backed	$ 296,894	$ 273,581
Collateralized mortgage obligations	77,351	75,438
Municipal bonds	53,568	47,770
U.S. government agency	18,139	17,490
Corporate bonds	6,984	6,444
Total available for sale	$ 452,936	$ 420,723
Held to maturity:
Municipal bonds	$ 1,065	$ 1,066
Total held to maturity	$ 1,065	$ 1,066

Approximately 66% of the investment securities portfolio was pledged as of September 30, 2024 to secure public deposits and borrowings with the Federal Reserve Bank Term Funding Program (“BTFP”). The Company had $142.0 million of securities pledged to secure public deposits and $135.0 million pledged to the BTFP borrowings at September 30, 2024 and June 30, 2024.

Deposits

Total deposits were $2.8 billion at September 30, 2024, up $54.6 million, or 2%, from June 30, 2024. Non-maturity deposits increased $45.2 million, or 2%, during the third quarter of 2024 to $2.1 billion. The following table summarizes the changes in the Company’s deposits from June 30, 2024 to September 30, 2024.

*(dollars in thousands)*	9/30/2024	6/30/2024	Increase (Decrease)
Demand deposits	$ 740,854	$ 746,504	$ (5,650)	(1) %
Savings	215,815	218,307	(2,492)	(1)
Money market	452,456	427,406	25,050	6
NOW	644,061	615,809	28,252	5
Certificates of deposit	724,301	714,889	9,412	1
Total deposits	$ 2,777,487	$ 2,722,915	$ 54,572	2 %

The average rate on interest-bearing deposits increased 9 basis points from 2.69% for the second quarter of 2024 to 2.78% for the third quarter of 2024. At September 30, 2024, certificates of deposit maturing within the next 12 months totaled $680.8 million.

We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.

	September 30, 2024	June 30, 2024
Individuals	52 %	53 %
Small businesses	38	37
Public funds	7	8
Broker	3	2
Total	100 %	100 %

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $818.7 million at September 30, 2024 and $780.1 million at June 30, 2024. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin (“NIM”) increased 5 basis points from 3.66% for the second quarter of 2024 to 3.71% for the third quarter of 2024 primarily due to the increase in average interest-earning assets outpacing the increase in average interest-bearing liabilities.

The average loan yield was 6.43% for the third quarter of 2024, up 15 basis points from the second quarter of 2024, primarily due to new loan originations at higher market rates during the third quarter.

The average cost of interest-bearing deposits increased by 9 basis points in the third quarter of 2024 compared to the second quarter of 2024. The increase in deposit costs reflects the rise in market rates of interest as well as a migration to interest-bearing deposits from non-interest bearing deposits.

Average other interest-earning assets were $79.7 million for the third quarter of 2024, up $28.3 million, or 55%, from the second quarter of 2024 primarily due to a reallocation of certain other interest-earning assets.

Loan accretion income from acquired loans totaled $452,000 for the third quarter of 2024, down $38,000, or 8%, from the second quarter of 2024.

The following table summarizes the Company’s average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated. Taxable equivalent (“TE”) yields on investment securities have been calculated using a marginal tax rate of 21%.

	Quarter Ended
	9/30/2024			6/30/2024
*(dollars in thousands)*	Average Balance	Interest	Average Yield/ Rate	Average Balance	Interest	Average Yield/ Rate
Interest-earning assets:
Loans receivable	$ 2,668,672	$ 43,711	6.43 %	$ 2,652,331	$ 41,999	6.28 %
Investment securities^(TE)	454,024	2,677	2.38	463,500	2,740	2.38
Other interest-earning assets	79,668	991	4.95	51,355	719	5.64
Total interest-earning assets	$ 3,202,364	$ 47,379	5.82 %	$ 3,167,186	$ 45,458	5.70 %
Interest-bearing liabilities:
Deposits:
Savings, checking, and money market	$ 1,266,465	$ 5,571	1.75 %	$ 1,260,491	$ 5,108	1.63 %
Certificates of deposit	722,717	8,337	4.59	704,690	8,026	4.58
Total interest-bearing deposits	1,989,182	13,908	2.78	1,965,181	13,134	2.69
Other borrowings	140,539	1,673	4.74	140,610	1,656	4.74
Subordinated debt	54,374	844	6.21	54,322	844	6.22
FHLB advances	56,743	572	3.99	46,499	431	3.69
Total interest-bearing liabilities	$ 2,240,838	$ 16,997	3.02 %	$ 2,206,612	$ 16,065	2.93 %
Noninterest-bearing deposits	$ 741,387			$ 751,776
Net interest spread^(TE)			2.80 %			2.77 %
Net interest margin^(TE)			3.71 %			3.66 %

Noninterest Income

Noninterest income for the third quarter of 2024 totaled $3.7 million, down $63,000, or 2%, from the second quarter of 2024. The decrease was related primarily to bank card fees (down $138,000), which was partially offset by gain on sale of loans (up $69,000) for the third quarter of 2024 compared to the second quarter of 2024.

Noninterest Expense

Noninterest expense for the third quarter of 2024 totaled $22.3 million, up $450,000, or 2%, from the second quarter of 2024. The increase was primarily related to compensation and benefits expense (up $270,000), the absence of a reversal to the allowance for credit losses on unfunded commitments ($134,000), and occupancy expense (up $129,000), which were partially offset by professional fees (down $131,000) during the third quarter of 2024.

Capital and Liquidity

At September 30, 2024, shareholders’ equity totaled $393.5 million, up $17.6 million, or 5%, compared to $375.8 million at June 30, 2024. The increase was primarily due to the the Company’s earnings of $9.4 million and a decrease in the accumulated other comprehensive loss on available for sale investments securities during the third quarter of 2024, which was partially offset by shareholder dividends and repurchases of shares of the Company’s common stock. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.32% and 15.03%, respectively, at September 30, 2024, compared to 11.22% and 14.39%, respectively, at June 30, 2024.

The following table summarizes the Company’s primary and secondary sources of liquidity which were available at September 30, 2024.

*(dollars in thousands)*		September 30, 2024
Cash and cash equivalents		$ 135,877
Unencumbered investment securities, amortized cost		59,838
FHLB advance availability		1,147,306
Amounts available from unsecured lines of credit		55,000
Federal Reserve discount window availability		500
Total primary and secondary sources of available liquidity		$ 1,398,521

Dividend and Share Repurchases

The Company announces that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.26 per share payable on November 8, 2024, to shareholders of record as of October 28, 2024.

The Company repurchased 24,473 shares of its common stock during the third quarter of 2024 at an average price per share of $38.50. An additional 313,812 shares remain eligible for purchase under the 2023 Repurchase Plan. The book value per share and tangible book value per share of the Company’s common stock was $48.75 and $38.17, respectively, at September 30, 2024.

Conference Call

Executive management will host a conference call to discuss third quarter 2024 results on Friday, October 18, 2024 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.646.357.8785 (US Local/International) or 1.800.836.8184 (US Toll Free). The investor presentation can be accessed on the day of the presentation on the Home Bancorp, Inc. website at https://home24bank.investorroom.com.

A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company’s website, https://home24bank.investorroom.com.

Non-GAAP Reconciliation

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Company’s management uses this non-GAAP financial information in its analysis of the Company’s performance. In this news release, information is included which excludes intangible assets. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company’s financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation on non-GAAP information included herein to GAAP is presented below.

	Quarter Ended
*(dollars in thousands, except per share data)*	9/30/2024	6/30/2024	9/30/2023
Reported net income	$ 9,437	$ 8,118	$ 9,754
Add: Core deposit intangible amortization, net tax	259	261	307
Non-GAAP tangible income	$ 9,696	$ 8,379	$ 10,061

Total assets	$ 3,441,990	$ 3,410,881	$ 3,317,729
Less: Intangible assets	85,361	85,690	86,749
Non-GAAP tangible assets	$ 3,356,629	$ 3,325,191	$ 3,230,980

Total shareholders’ equity	$ 393,453	$ 375,830	$ 345,332
Less: Intangible assets	85,361	85,690	86,749
Non-GAAP tangible shareholders’ equity	$ 308,092	$ 290,140	$ 258,583

Return on average equity	9.76 %	8.75 %	11.04 %
Add: Average intangible assets	3.14	2.98	4.11
Non-GAAP return on average tangible common equity	12.90 %	11.73 %	15.15 %

Common equity ratio	11.43 %	11.02 %	10.41 %
Less: Intangible assets	2.25	2.29	2.41
Non-GAAP tangible common equity ratio	9.18 %	8.73 %	8.00 %

Book value per share	$ 48.75	$ 46.51	$ 42.30
Less: Intangible assets	10.58	10.61	10.63
Non-GAAP tangible book value per share	$ 38.17	$ 35.90	$ 31.67

This news release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors – many of which are beyond our control – could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2023 describes some of these factors, including risk elements in the loan portfolio, risks related to our deposit activities, the level of the allowance for credit losses, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
*(dollars in thousands)*	9/30/2024	6/30/2024	% Change	9/30/2023
Assets
Cash and cash equivalents	$ 135,877	$ 113,462	20 %	$ 84,520
Interest-bearing deposits in banks	—	—	—	99
Investment securities available for sale, at fair value	420,723	412,472	2	427,019
Investment securities held to maturity	1,065	1,065	—	1,065
Mortgage loans held for sale	242	—	—	467
Loans, net of unearned income	2,668,286	2,661,346	—	2,569,094
Allowance for loan losses	(32,278)	(32,212)	—	(31,123)
Total loans, net of allowance for loan losses	2,636,008	2,629,134	—	2,537,971
Office properties and equipment, net	42,659	43,089	(1)	42,402
Cash surrender value of bank-owned life insurance	48,139	47,858	1	47,054
Goodwill and core deposit intangibles	85,361	85,690	—	86,749
Accrued interest receivable and other assets	71,916	78,111	(8)	90,383
Total Assets	$ 3,441,990	$ 3,410,881	1 %	$ 3,317,729

Liabilities
Deposits	$ 2,777,487	$ 2,722,915	2 %	$ 2,597,484
Other Borrowings	140,539	140,539	—	5,539
Subordinated debt, net of issuance cost	54,402	54,348	—	54,187
Federal Home Loan Bank advances	38,410	83,506	(54)	283,826
Accrued interest payable and other liabilities	37,699	33,743	12	31,361
Total Liabilities	3,048,537	3,035,051	—	2,972,397

Shareholders’ Equity
Common stock	81	81	—	81
Additional paid-in capital	166,743	165,918	—	165,149
Common stock acquired by benefit plans	(1,428)	(1,518)	6	(1,787)
Retained earnings	251,692	245,046	3	227,649
Accumulated other comprehensive loss	(23,635)	(33,697)	30	(45,760)
Total Shareholders’ Equity	393,453	375,830	5	345,332
Total Liabilities and Shareholders’ Equity	$ 3,441,990	$ 3,410,881	1 %	$ 3,317,729

HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
	Quarter Ended
*(dollars in thousands, except per share data)*	9/30/2024	6/30/2024	% Change	9/30/2023	% Change
Interest Income
Loans, including fees	$ 43,711	$ 41,999	4 %	$ 38,490	14 %
Investment securities	2,677	2,740	(2)	2,939	(9)
Other investments and deposits	991	719	38	649	53
Total interest income	47,379	45,458	4	42,078	13
Interest Expense
Deposits	13,908	13,134	6 %	8,181	70 %
Other borrowings	1,673	1,656	1	53	3057
Subordinated debt expense	844	844	—	845	—
Federal Home Loan Bank advances	572	431	33	3,490	(84)
Total interest expense	16,997	16,065	6	12,569	35
Net interest income	30,382	29,393	3	29,509	3
Provision for loan losses	140	1,261	(89)	351	(60)
Net interest income after provision for loan losses	30,242	28,132	8	29,158	4
Noninterest Income
Service fees and charges	1,291	1,239	4 %	1,277	1 %
Bank card fees	1,613	1,751	(8)	1,903	(15)
Gain on sale of loans, net	195	126	55	687	(72)
Income from bank-owned life insurance	281	271	4	265	6
Loss on sale of assets, net	(10)	(2)	(400)	—	—
Other income	322	370	(13)	267	21
Total noninterest income	3,692	3,755	(2)	4,399	(16)
Noninterest Expense
Compensation and benefits	13,058	12,788	2 %	12,492	5 %
Occupancy	2,732	2,603	5	2,410	13
Marketing and advertising	382	485	(21)	638	(40)
Data processing and communication	2,646	2,555	4	2,496	6
Professional fees	450	581	(23)	402	12
Forms, printing and supplies	188	187	1	195	(4)
Franchise and shares tax	488	487	—	542	(10)
Regulatory fees	493	509	(3)	511	(4)
Foreclosed assets, net	62	89	(30)	99	(37)
Amortization of acquisition intangible	328	329	—	389	(16)
(Reversal) provision for credit losses on unfunded commitments	—	(134)	100	—	—
Other expenses	1,431	1,329	8	1,164	23
Total noninterest expense	22,258	21,808	2	21,338	4
Income before income tax expense	11,676	10,079	16	12,219	(4)
Income tax expense	2,239	1,961	14	2,465	(9)
Net income	$ 9,437	$ 8,118	16 %	$ 9,754	(3) %

Earnings per share – basic	$ 1.19	$ 1.02	17 %	$ 1.22	(2) %
Earnings per share – diluted	$ 1.18	$ 1.02	16 %	$ 1.22	(3) %

Cash dividends declared per common share	$ 0.25	$ 0.25	— %	$ 0.25	— %

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
	Quarter Ended
*(dollars in thousands, except per share data)*	9/30/2024	6/30/2024	% Change	9/30/2023	% Change
EARNINGS DATA
Total interest income	$ 47,379	$ 45,458	4 %	$ 42,078	13 %
Total interest expense	16,997	16,065	6	12,569	35
Net interest income	30,382	29,393	3	29,509	3
Provision for loan losses	140	1,261	(89)	351	(60)
Total noninterest income	3,692	3,755	(2)	4,399	(16)
Total noninterest expense	22,258	21,808	2	21,338	4
Income tax expense	2,239	1,961	14	2,465	(9)
Net income	$ 9,437	$ 8,118	16	$ 9,754	(3)

AVERAGE BALANCE SHEET DATA
Total assets	$ 3,405,083	$ 3,367,207	1 %	$ 3,281,093	4 %
Total interest-earning assets	3,202,364	3,167,186	1	3,087,452	4
Total loans	2,668,672	2,652,331	1	2,538,218	5
PPP loans	4,470	5,156	(13)	5,869	(24)
Total interest-bearing deposits	1,989,182	1,965,181	1	1,768,639	12
Total interest-bearing liabilities	2,240,838	2,206,612	2	2,101,424	7
Total deposits	2,730,568	2,716,957	1	2,568,173	6
Total shareholders’ equity	384,518	373,139	3	350,436	10

PER SHARE DATA
Earnings per share – basic	$ 1.19	$ 1.02	17 %	$ 1.22	(2) %
Earnings per share – diluted	1.18	1.02	16	1.22	(3)
Book value at period end	48.75	46.51	5	42.30	15
Tangible book value at period end	38.17	35.90	6	31.67	21
Shares outstanding at period end	8,070,539	8,081,344	—	8,163,655	(1)
Weighted average shares outstanding
Basic	7,921,582	7,972,445	(1) %	8,006,226	(1) %
Diluted	7,966,957	8,018,908	(1)	8,038,606	(1)

SELECTED RATIOS ⁽¹⁾
Return on average assets	1.10 %	0.97 %	13 %	1.18 %	(7) %
Return on average equity	9.76	8.75	12	11.04	(12)
Common equity ratio	11.43	11.02	4	10.41	10
Efficiency ratio ⁽²⁾	65.32	65.79	(1)	62.93	4
Average equity to average assets	11.29	11.08	2	10.68	6
Tier 1 leverage capital ratio ⁽³⁾	11.32	11.22	1	10.71	6
Total risk-based capital ratio ⁽³⁾	15.03	14.39	4	13.73	9
Net interest margin ⁽⁴⁾	3.71	3.66	1	3.75	(1)

SELECTED NON-GAAP RATIOS ⁽¹⁾
Tangible common equity ratio ⁽⁵⁾	9.18 %	8.73 %	5 %	8.00 %	15 %
Return on average tangible common equity ⁽⁶⁾	12.90	11.73	10	15.15	(15)

(1)	With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.

(2)	The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income.

(3)	Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.

(4)	Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.

(5)	Tangible common equity ratio is common shareholders’ equity less intangible assets divided by total assets less intangible assets. See “Non-GAAP Reconciliation” for additional information.

(6)	Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders’ equity less average intangible assets. See “Non-GAAP Reconciliation” for additional information.

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION
(Unaudited)
	9/30/2024			6/30/2024			9/30/2023
*(dollars in thousands)*	Originated	Acquired	Total	Originated	Acquired	Total	Originated	Acquired	Total
CREDIT QUALITY ⁽¹⁾
Nonaccrual loans	$ 13,741	$ 4,314	$ 18,055	$ 12,594	$ 4,223	$ 16,817	$ 8,001	$ 3,905	$ 11,906
Accruing loans 90 days or more past due	34	—	34	1	—	1	43	—	43
Total nonperforming loans	13,775	4,314	18,089	12,595	4,223	16,818	8,044	3,905	11,949
Foreclosed assets and ORE	—	267	267	16	215	231	221	141	362
Total nonperforming assets	$ 13,775	$ 4,581	$ 18,356	$ 12,611	$ 4,438	$ 17,049	$ 8,265	$ 4,046	$ 12,311

Nonperforming assets to total assets			0.53 %			0.50 %			0.37 %
Nonperforming loans to total assets			0.53			0.49			0.36
Nonperforming loans to total loans			0.68			0.63			0.47

(1)

It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings.

HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION – CONTINUED
(Unaudited)
	9/30/2024			6/30/2024			9/30/2023
	Collectively Evaluated	Individually Evaluated	Total	Collectively Evaluated	Individually Evaluated	Total	Collectively Evaluated	Individually Evaluated	Total
ALLOWANCE FOR CREDIT LOSSES
One- to four-family first mortgage	$ 4,402	$ —	$ 4,402	$ 3,349	$ —	$ 3,349	$ 3,320	$ —	$ 3,320
Home equity loans and lines	785	—	785	705	—	705	742	—	742
Commercial real estate	13,271	200	13,471	14,957	200	15,157	14,185	230	14,415
Construction and land	5,167	—	5,167	5,304	—	5,304	5,123	—	5,123
Multi-family residential	1,079	—	1,079	582	—	582	523	—	523
Commercial and industrial	6,635	42	6,677	6,320	58	6,378	6,161	105	6,266
Consumer	697	—	697	737	—	737	734	—	734
Total allowance for loan losses	$ 32,036	$ 242	$ 32,278	$ 31,954	$ 258	$ 32,212	$ 30,788	$ 335	$ 31,123

Unfunded lending commitments⁽²⁾	2,460	—	2,460	2,460	—	2,460	2,454	—	2,454
Total allowance for credit losses	$ 34,496	$ 242	$ 34,738	$ 34,414	$ 258	$ 34,672	$ 33,242	$ 335	$ 33,577

Allowance for loan losses to nonperforming assets			175.84 %			188.94 %			252.81 %
Allowance for loan losses to nonperforming loans			178.44 %			191.53 %			260.47 %
Allowance for loan losses to total loans			1.21 %			1.21 %			1.21 %
Allowance for credit losses to total loans			1.30 %			1.30 %			1.31 %

Year-to-date loan charge-offs			$ 1,030			$ 815			$ 148
Year-to-date loan recoveries			229			88			296
Year-to-date net loan (charge-offs) recoveries			$ (801)			$ (727)			$ 148
Annualized YTD net loan (charge- offs) recoveries to average loans			(0.04) %			(0.06) %			0.01 %

(2)	The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

View original content to download multimedia:https://www.prnewswire.com/news-releases/home-bancorp-inc-announces-2024-third-quarter-results-and-increases-quarterly-dividend-by-4-302279804.html

SOURCE Home Bancorp, Inc.

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Pierre Ferragu Notes The Disconnect Between Media And Crypto-Based Polymarket On Trump-Harris Election Outcome: 'I Love The Dissonance'

18.10.2024 by admin

Pierre Ferragu, an analyst at New Street Research, recently expressed his views on the disconnect between prediction markets and the press regarding the 2024 U.S. presidential elections

What Happened: On Thursday, Ferragu took to X to highlight the contrasting narratives between the media and Polymarket— a so-called decentralized prediction market that used cryptocurrency to offer bets.

He pointed out that while Polymarket gave former President Donald Trump a greater than 60% chance of winning, the press painted a different picture, suggesting a tight race with Vice President Kamala Harris winning the popular vote, even though the Electoral College might favor the GOP nominee.

I love dissonance. Polymarket: Trump has a >60% chance to win. The press: such a tight race, but Kamala wins the popular vote, even if the Electoral College favors Trump.

Make your bets…

— Pierre Ferragu (@p_ferragu) October 17, 2024

Why It Matters: Ferragu’s observations come in the wake of Trump’s widening lead over Harris on Polymarket, with the former President having a 62% possibility of winning at the time of writing.

Similarly, Kalshi, a federally-regulated betting platform, showed 57% odds in Trump’s favor, againt Harris’ 43%.

This was in sharp contrast to national poll surveys that gave Harris an edge.

A Marist College survey finds Harris leading Trump by five points, with 52% support to Trump’s 47%. Additionally, a Reuters/Ipsos poll gave Harris a 3-point lead over her Republican rival.

The divergence comes amid speculation of a coordinated betting activity on Polymarket, where a single entity is suspected to have placed a massive $26 million bet on Trump’s victory.

Polymarket, built on Ethereum’s ETH/USD Layer-2 protocol Polygon MATIC/USD, has gained prominence as one of the world’s top prediction markets for U.S. elections.

Image Via Shutterstock

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UNITED BANCSHARES, INC. ANNOUNCES THIRD QUARTER 2024 RESULTS AND $0.22 DIVIDEND

18.10.2024 by admin

COLUMBUS GROVE, Ohio, Oct. 17, 2024 /PRNewswire/ — United Bancshares, Inc. UBOH

A quarterly cash dividend declared of $0.22 per share for shareholders of record on November 29, 2024, payable on December 16, 2024. Based on the average closing price for the third quarter, this is a 4.50% dividend yield.

Net income of $2.5 million or $0.83 per share for the 2024 third quarter. This is a $494,000 increase from $2.0 million or $0.65 per share in the comparable period in 2023. YTD 2024 net income of $6.1 million or $2.05 per share, down slightly from $6.3 million net income, but up from $2.03 per share YTD 2023.

Return on average assets of 0.83% for the 2024 third quarter, an increase from 0.73% in the comparable period in 2023. YTD 2024 return on average assets of 0.73%, down from 0.77% YTD 2023.

Return on average tangible equity of 14.96% for the 2024 third quarter, up from 14.12% in the comparable period in 2023. YTD 2024 return on average tangible equity of 12.85%, down from 14.78% YTD 2023.

The net interest margin is 3.12% for the 2024 third quarter, down from 3.42% in the comparable period in 2023. YTD 2024 net interest margin of 3.09%, down from 3.47% YTD 2023.

Loan growth of $13.4 million, up 2.53% annualized from December 31, 2023.

Deposit growth of $154.4 million, up 21.60% annualized from December 31, 2023.

Asset quality metrics remain strong with stable non-performing and classified loans. Charge-offs remain at historically low levels through September 30, 2024.

About The Union Bank Company:
Since 1904, The Union Bank Company has been here to provide full-service banking to the people and businesses throughout the communities we serve. Today, the bank has 14 full-service branch locations across Northwest and Central Ohio, including Bowling Green, Columbus Grove, Delphos, Findlay, Gibsonburg, Kalida, Leipsic, Lewis Center, Lima, Marion, Ottawa, Paulding and Pemberville. We have Interactive Teller Machines (ITMs) located at all of our branch locations with additional ITM only locations in Gahanna, Lima, Marion and Westerville. The Union Bank Company is headquartered in Columbus Grove, Ohio, and remains committed to providing the very best banking service and products to all the communities we serve. Learn more at www.theubank.com.

United Bancshares, Inc.
Quarterly Report
September 30, 2024

Shareholders, Clients, and Team Members:

I am pleased to report that, as a direct result of the ongoing efforts of the Company’s dedicated team members, your Company reported positive results for the three- and nine-month periods ending September 30, 2024. The third quarter improvements include net income of $0.83 per share, income before taxes of $2.7 million, return on average assets of 0.83%, and return on average tangible equity of 14.96%, which all were increases as compared to the same period in 2023. Year-to-date results include income before taxes of $6.6 million, return on average assets of 0.73%, and return on average tangible equity of 12.85%.

We reported significant growth of $154 million and $149 million in our deposit and cash positions, respectively. Of those increases, $100 million was from the Ohio Treasurer through the Bank’s participation in the Treasurer’s Ohio Homebuyer Plus program. We expect the Treasurer’s deposits to reduce throughout 2025 and land around $30 million by the end of 2025. Additionally, the Company reported a 2.53% annualized growth in loans during the first nine months of 2024.

I am also pleased to report that the Board of Directors declared a $0.22 per common share dividend payable December 16, 2024, to shareholders of record at the close of business on November 29, 2024. The dividend is 27% of the reported net income for the third quarter of 2024.

The efforts of the team and our strong corporate values of respect for and accountability to our shareholders, clients, colleagues, and communities are the foundation for the continued success of your Company. Thank you for your ongoing support and the trust you have placed in us.

Respectfully,

Brian D. Young
President & CEO

Financial Information (Unaudited)

	September 30, 2024	December 31, 2023
Cash and cash equivalents	$ 175,997,000	$ 26,915,000
Securities	249,914,000	253,588,000
Loans	722,274,000	708,828,000
Less allowance for credit losses	(8,331,000)	(8,876,000)
Other assets	90,829,000	91,043,000
Total Assets	$1,230,683,000	$1,071,498,000

Deposits	$ 1,107,211,000	$ 952,845,000
Borrowings	17,319,000	18,043,000
Other liabilities	6,221,000	6,686,000
Total Liabilities	1,130,751,000	977,574,000

Common stock and surplus	21,418,000	21,109,000
Retained earnings	122,455,000	118,300,000
Accumulated other comprehensive loss	(27,498,000)	(30,658,000)
Treasury stock	(16,443,000)	(14,827,000)
Total shareholders’ equity	99,932,000	93,924,000

Total Liabilities and Shareholders’ Equity	$1,230,683,000	$1,071,498,000

Common shares outstanding	2,977,310	3,036,757
Book value	$33.56	$30.93
Tangible book value (non-GAAP)	$23.95	$21.43
Closing price	$19.80	$19.26
Allowance for credit losses to loans (end of period)	1.16 %	1.26 %
Net loans to deposits (end of period)	64.48 %	73.46 %

	3 months ended	3 months ended	9 months ended	9 months ended
	Sept 30, 2024	Sept30, 2023	Sept 30, 2024	Sept 30, 2023
Interest income	$14,330,000	$11,975,000	$38,703,000	$34,998,000
Interest expense	5,986,000	3,801,000	15,762,000	9,833,000
Net interest income	8,344,000	8,174,000	22,941,000	25,165,000

Provision for credit losses	(288,000)	3,000	(769,000)	(93,000)
Net interest income after provision	8,632,000	8,171,000	23,710,000	25,258,000

Non-interest income	2,113,000	1,757,000	6,418,000	5,623,000
Non-interest expense	8,050,000	7,807,000	23,520,000	24,163,000
Income before federal income taxes	2,695,000	2,121,000	6,608,000	6,718,000

Federal income taxes	226,000	146,000	474,000	452,000
Net Income	$2,469,000	$1,975,000	$6,134,000	$6,266,000

Average common shares outstanding	2,980,554	3,058,686	2,999,048	3,085,189

Per Share Data:
Net income (basic)	$0.83	$0.65	$2.05	$2.03
Cash dividends declared	$0.22	$0.22	$0.66	$0.66
Dividend yield (annualized)	4.50 %	4.69 %	4.62 %	4.60 %

Performance Ratios:
Return on average assets	0.83 %	0.73 %	0.73 %	0.77 %
Return on average shareholders’ equity	10.58 %	9.31 %	8.98 %	9.77 %
Return on average tangible shareholders’ equity	14.96 %	14.12 %	12.85 %	14.78 %
Net interest margin	3.12 %	3.42 %	3.09 %	3.47 %
Net loan charge-offs (recoveries) as a percentage of average outstanding net loans	0.00 %	-0.01 %	0.00 %	-0.01 %

United Bancshares, Inc

Directors

Robert L. Benroth

Herbert H. Huffman III

H. Edward Rigel

David P. Roach

Daniel W. Schutt, Chairman

R. Steven Unverferth

Brian D. Young

Officers

Brian D. Young, President/CEO

Denise E. Giesige, Secretary

Klint D. Manz, CFO

The Union Bank Co.

Directors

Robert L. Benroth

Anthony M. V. Eramo

Herbert H. Huffman III

Kevin L. Lammon

William R. Perry

H. Edward Rigel

David P. Roach

Carol R. Russell

Daniel W. Schutt

R. Steven Unverferth

Dr. Jane M. Wood

Brian D. Young, Chairman

Investor Materials
United Bancshares, Inc. has traded its common stock on the OTCQX Markets Exchange under the symbol “UBOH”. Annual and quarterly shareholder reports, regulatory filings, press releases, and articles about United Bancshares, Inc. are available in the Investor Relations section of our website theubank.com or by calling 800-837-8111.

View original content:https://www.prnewswire.com/news-releases/united-bancshares-inc-announces-third-quarter-2024-results-and-0-22-dividend-302279744.html

SOURCE United Bancshares, Inc.

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Marijuana Stock Movers For October 17, 2024

18.10.2024 by admin

GAINERS:

LOSERS:

This article was generated by Benzinga’s automated content engine and reviewed by an editor.

Market News and Data brought to you by Benzinga APIs

Click on the image for more info.

Cannabis rescheduling seems to be right around the corner

Want to understand what this means for the future of the industry?

Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.

Get your tickets now before prices surge by following this link.

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MEDIA ADVISORY – THE GOVERNMENTS OF CANADA, QUEBEC AND THE CITY OF QUEBEC TO MAKE AN HOUSING ANNOUNCEMENT IN QUÉBEC

18.10.2024 by admin

QUÉBEC, Oct. 17, 2024 /CNW/ – Members of the media are invited to join the Honourable Jean-Yves Duclos, Minister of Public Services and Procurement, Quebec Lieutenant and Member of Parliament for Québec, on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities, and Jonatan Julien, Minister responsible for Infrastructure, Minister responsible for the Capitale-Nationale Region and MNA for Charlesbourg, on behalf of France-Élaine Duranceau, Minister responsible for Housing, and Marie-Pierre Boucher, City Councillor, District of Louis-XIV, for this event.

Journalists, photographers and cameramen are required to register at:communications@shq.gouv.qc.ca before October 18 at 8:30 am.

Date:	October 18, 2024
Time:	9:00 am ET

Location:	Registration required

SOURCE Canada Mortgage and Housing Corporation (CMHC)

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2024/17/c9695.html

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Middlefield Banc Corp. Reports 2024 Nine-Month Financial Results

18.10.2024 by admin

MIDDLEFIELD, Ohio, Oct. 17, 2024 (GLOBE NEWSWIRE) — Middlefield Banc Corp. MBCN today reported financial results for the nine months ended September 30, 2024.

2024 Nine-Month Financial Highlights (on a year-over-year basis):

Net income was $10.7 million, compared to $13.8 million
Pre-tax, pre-provision net income⁽¹⁾ was $14.7 million, compared to $19.0 million
Earnings were $1.32 per diluted share, compared to $1.70 per diluted share
Net interest income after the provision for credit losses was $42.9 million, compared to $47.4 million
Noninterest income increased 4.1% to $5.3 million, compared to $5.1 million
Total loans increased 3.9% to a record $1.50 billion, compared to $1.45 billion
Total deposits increased 3.8% to a record $1.51 billion, compared to $1.46 billion
Return on average assets annualized was 0.77%, compared to 1.06%
Return on average equity annualized was 6.90%, compared to 9.43%
Return on average tangible common equity⁽¹⁾ was 8.68%, compared to 11.92%
Nonperforming assets to total assets increased to 1.62% from 0.75%
Allowance for credit losses was 1.50% of total loans, compared to 1.45%
Equity to assets strengthened to 11.34%, compared to 10.80%
Book value increased 9.1% to $26.11 from $23.94 per share
Tangible book value⁽¹⁾ increased 12.1% to $20.87 from $18.62 per share

⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”

Ronald L. Zimmerly, Jr., President and Chief Executive Officer, stated, “We ended the third quarter of 2024 with record total assets and deposits, as well as a record book value per share. These results reflect our team’s dedication and commitment to serve customers throughout our Central, Western and Northeast Ohio markets. We ended the quarter with higher charge-offs and non-performing loans, associated with one customer. As a result, the provision for credit losses increased during the third quarter and reduced after tax earnings by $0.12 per diluted share. Despite these one-time impacts, we produced strong levels of core profitability, including the highest level of pre-tax pre-provision income in the past four quarters.”

“I am pleased with the progress we are making maintaining appropriate funding costs and controlling noninterest expense, as our quarterly cost of funds declined sequentially for the first time in ten quarters, and noninterest expense was at the lowest level in six quarters. We expect the economic environment will remain fluid over the near-term, and as we look to 2025, we will continue to focus on supporting our communities, strategically allocating capital, maintaining disciplined underwriting standards, and prudently managing expenses,” concluded Mr. Zimmerly.

Income Statement
Net interest income for the nine months ended September 30, 2024, decreased $4.7 million to $45.1 million, compared to $49.8 million for the same period last year. The net interest margin for the nine months ended September 30, 2024, was 3.50%, compared to 4.09% last year. Net interest income for the 2024 third quarter decreased $894,000 to $15.1 million, compared to $16.0 million for the 2023 third quarter. The net interest margin for the 2024 third quarter was 3.46%, compared to 3.82% for the same period of 2023.

For the nine months ended September 30, 2024, noninterest income increased $211,000 to $5.3 million, compared to $5.1 million for the same period in 2023. Noninterest income for the 2024 third quarter was $1.7 million, compared to $1.8 million for the same period the previous year.

Noninterest expense for the nine months ended September 30, 2024, was $35.7 million, compared to $36.0 million for the same period in 2023. For the 2024 third quarter, noninterest expense was $11.9 million, compared to $12.1 million for the 2023 third quarter.

Net income for the nine months ended September 30, 2024, was $10.7 million, or $1.32 per diluted share, compared to $13.8 million, or $1.70 per diluted share, for the same period last year. Net income for the 2024 third quarter was $2.3 million, or $0.29 per diluted share, compared to $3.8 million, or $0.47 per diluted share, for the same period last year.

For the nine months ended September 30, 2024, pre-tax, pre-provision net income was $14.7 million, compared to $19.0 million last year. For the 2024 third quarter, pre-tax, pre-provision net income was $4.9 million, compared to $5.7 million for the same period of 2023. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet
Total assets at September 30, 2024, increased 3.6% to $1.86 billion, compared to $1.79 billion at September 30, 2023. Total loans at September 30, 2024, were $1.50 billion, compared to $1.45 billion at September 30, 2023. The 3.9% year-over-year increase in total loans was primarily due to higher non-owner occupied and residential real estate loans.

Total liabilities at September 30, 2024, increased 3.0% to $1.65 billion, compared to $1.60 billion at September 30, 2023. Total deposits at September 30, 2024, were $1.51 billion, compared to $1.46 billion at September 30, 2023. The 3.8% year-over-year increase in deposits was primarily due to growth in money market and time deposits, partially offset by declines in noninterest-bearing and interest-bearing demand and savings accounts. Noninterest-bearing demand deposits were 25.8% of total deposits at September 30, 2024, compared to 29.1% at September 30, 2023. At September 30, 2024, the Company had brokered deposits of $86.5 million, compared to $53.5 million at September 30, 2023.

The investment securities available-for-sale portfolio was $169.9 million at September 30, 2024, compared with $159.4 million at September 30, 2023.

Mr. Ranttila, Chief Financial Officer, stated, “We continue to look at opportunities to proactively strengthen our balance sheet and improve our cost of funds. In addition, since December 31, 2023, deposits have increased 6.0%, while our Federal Home Loan Bank (“FHLB”) advances have decreased by 35.0%. This is the lowest level of FHLB advances in over a year. In addition, during the quarter, we received approval to use the Federal Reserve Board’s discount window, adding a new and efficient liquidity provider. The combination of high levels of potentially liquid assets, cash flows from operations, and additional borrowing capacity continues to provide us with excellent liquidity levels to support our long-term growth strategies and our legacy of returning excess capital to shareholders.”

Middlefield’s CRE portfolio included the following categories at September 30, 2024:

	Balance		Percent of			Percent of
CRE Category	(in thousands)		CRE Portfolio			Loan Portfolio
Multi-Family	$	94,798		13.8	%		6.3	%
Office Space		75,149		10.9	%		5.0	%
Shopping Plazas		69,762		10.1	%		4.6	%
Self-Storage		56,041		8.1	%		3.7	%
Hospitality		39,840		5.8	%		2.6	%
Senior Living		23,069		3.3	%		1.5	%
Other		330,611		48.0	%		22.0	%
Total CRE	$	689,270		100.0	%		45.7	%

Stockholders’ Equity and Dividends
At September 30, 2024, stockholders’ equity was $210.7 million, compared to $193.7 million at September 30, 2023. The 8.8% year-over-year increase in stockholders’ equity was primarily from higher retained earnings and an improvement in the unrealized losses on the available-for-sale investment portfolio, partially offset by stock acquired under the Company’s stock repurchase program. On a per-share basis, shareholders’ equity at September 30, 2024, was $26.11, compared to $23.94 at September 30, 2023.

At September 30, 2024, tangible stockholders’ equity⁽¹⁾ was $168.5 million, compared to $150.6 million at September 30, 2023. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $20.87 at September 30, 2024, compared to $18.62 at September 30, 2023. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the nine months ended September 30, 2024, the Company declared cash dividends of $0.60 per share, totaling $4.8 million.

For the nine months ended September 30, 2024, the Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share. There were no repurchases during the third quarter of 2024.

At September 30, 2024, the Company’s equity-to-assets ratio was 11.34%, compared to 10.80% at September 30, 2023.

Asset Quality

For the nine months ended September 30, 2024, the Company recorded a provision for credit losses of $2.2 million, versus a provision for credit losses of $2.4 million for the same period last year. For the 2024 third quarter, the Company recorded a provision for credit losses of $2.2 million, compared to a provision for credit losses of $1.1 million for the same period of 2023.

Net charge-offs were $1.3 million, or 0.11% of average loans, annualized, for the nine months ended September 30, 2024, compared to net charge-offs of $87,000, or 0.01% of average loans, annualized, for the same period last year. Net charge-offs were $1.4 million, or 0.36% of average loans, annualized, for the 2024 third quarter, compared to net recoveries of $16,000, or 0.00% of average loans, annualized, for the same period of 2023. The higher net charge-offs were due to the partial charge-off of one loan during the 2024 third quarter.

Nonperforming loans at September 30, 2024, were $30.1 million, compared to $7.7 million at September 30, 2023. Nonperforming assets at September 30, 2024, were $30.1 million, compared to $13.5 million at September 30, 2023. The increase in nonperforming assets is primarily the result of a $13.5 million loan moved to nonaccrual in the 2024 third quarter, subsequent to the partial charge-off noted in the previous paragraph. The allowance for credit losses at September 30, 2024, stood at $22.5 million, or 1.50% of total loans, compared to $21.0 million, or 1.45% of total loans at September 30, 2023. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.

Michael Ranttila stated, “Nonperforming assets during the third quarter were impacted by a $13.5 million loan. Combined with the two previously disclosed relationships that moved to nonaccrual in the second quarter of 2024, these three customers accounted for $20.2 million of nonperforming assets at September 30, 2024. We believe these relationships do not indicate a trend in the markets we serve, our portfolio, or underwriting standards. Despite this increase, we remain well reserved for potential credit losses with an allowance for credit losses to total loans of 1.50% at September 30, 2024, which was up slightly from both the same period a year ago, and the quarter ended June 30, 2024.”

About Middlefield Banc Corp.

Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.86 billion at September 30, 2024. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

Additional information is available at www.middlefieldbank.bank

NON-GAAP FINANCIAL MEASURES

This press release includes disclosure of Middlefield Banc Corp.’s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the following Consolidated Financial Highlights tables below.

FORWARD-LOOKING STATEMENTS
This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are several important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

Company Contact:	Investor and Media Contact:
Ronald L. Zimmerly, Jr. President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 rzimmerly@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	September 30,		June 30,		March 31,		December 31,		September 30,
Balance Sheets (period end)	2024		2024		2024		2023		2023
ASSETS
Cash and due from banks	$	61,851	$	50,496	$	44,816	$	56,397	$	56,228
Federal funds sold		12,022		1,762		1,438		4,439		9,274
Cash and cash equivalents		73,873		52,258		46,254		60,836		65,502
Investment securities available for sale, at fair value		169,895		166,424		167,890		170,779		159,414
Other investments		895		881		907		955		958
Loans held for sale		249		–		–		–		632
Loans:
Commercial real estate:
Owner occupied		187,313		182,809		178,543		183,545		185,593
Non-owner occupied		407,159		385,648		398,845		401,580		382,676
Multifamily		94,798		86,951		81,691		82,506		82,578
Residential real estate		345,748		337,121		331,480		328,854		321,331
Commercial and industrial		213,172		234,702		227,433		221,508		214,334
Home equity lines of credit		137,761		131,047		129,287		127,818		127,494
Construction and other		111,550		132,530		135,716		125,105		127,106
Consumer installment		7,030		6,896		7,131		7,214		7,481
Total loans		1,504,531		1,497,704		1,490,126		1,478,130		1,448,593
Less allowance for credit losses		22,526		21,795		21,069		21,693		20,986
Net loans		1,482,005		1,475,909		1,469,057		1,456,437		1,427,607
Premises and equipment, net		20,528		20,744		21,035		21,339		21,708
Goodwill		36,356		36,356		36,356		36,356		36,197
Core deposit intangibles		5,869		6,126		6,384		6,642		6,906
Bank-owned life insurance		35,049		34,802		34,575		34,349		34,153
Other real estate owned		–		–		–		–		5,792
Accrued interest receivable and other assets		32,916		34,686		34,210		35,190		34,551
TOTAL ASSETS	$	1,857,635	$	1,828,186	$	1,816,668	$	1,822,883	$	1,793,420

	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
LIABILITIES
Deposits:
Noninterest-bearing demand	$	390,933		$	387,024		$	390,185		$	401,384		$	424,055
Interest-bearing demand		218,002			206,542			209,015			205,582			243,973
Money market		376,619			355,630			318,823			274,682			275,766
Savings		199,984			192,472			196,721			210,639			216,453
Time		327,231			327,876			332,165			334,315			296,732
Total deposits		1,512,769			1,469,544			1,446,909			1,426,602			1,456,979
Federal Home Loan Bank advances		106,000			125,000			137,000			163,000			118,000
Other borrowings		11,711			11,762			11,812			11,862			11,912
Accrued interest payable and other liabilities		16,450			15,092			15,372			15,738			12,780
TOTAL LIABILITIES		1,646,930			1,621,398			1,611,093			1,617,202			1,599,671
STOCKHOLDERS’ EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,950,342
shares issued, 8,071,032 shares outstanding as of September 30, 2024		161,916			161,823			161,823			161,388			161,312
Additional paid-in capital		108			–			–			–			–
Retained earnings		106,067			105,342			102,791			100,237			98,717
Accumulated other comprehensive loss		(16,477	)		(19,468	)		(18,130	)		(16,090	)		(26,426	)
Treasury stock, at cost; 1,879,310 shares as of September 30, 2024		(40,909	)		(40,909	)		(40,909	)		(39,854	)		(39,854	)
TOTAL STOCKHOLDERS’ EQUITY		210,705			206,788			205,575			205,681			193,749
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,857,635		$	1,828,186		$	1,816,668		$	1,822,883		$	1,793,420

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended													For the Nine Months Ended
	September 30,		June 30,			March 31,			December 31,			September 30,		September 30,			September 30,
Statements of Income	2024		2024			2024			2023			2023		2024			2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	23,441	$	23,422		$	22,395		$	22,027		$	20,899	$	69,258		$	59,935
Interest-earning deposits in other institutions		348		386			437			370			300		1,171			920
Federal funds sold		143		122			152			94			266		417			678
Investment securities:
Taxable interest		528		505			467			479			477		1,500			1,415
Tax-exempt interest		962		966			972			976			980		2,900			2,938
Dividends on stock		191		198			189			144			148		578			326
Total interest and dividend income		25,613		25,599			24,612			24,090			23,070		75,824			66,212
INTEREST EXPENSE
Deposits		8,792		8,423			7,466			6,522			5,632		24,681			12,472
Short-term borrowings		1,575		1,920			1,993			2,013			1,258		5,488			3,373
Other borrowings		173		173			184			179			213		530			539
Total interest expense		10,540		10,516			9,643			8,714			7,103		30,699			16,384
NET INTEREST INCOME		15,073		15,083			14,969			15,376			15,967		45,125			49,828
Provision (Recovery of) for credit losses		2,234		87			(136	)		554			1,127		2,185			2,449
NET INTEREST INCOME AFTER PROVISION
(RECOVERY OF) FOR CREDIT LOSSES		12,839		14,996			15,105			14,822			14,840		42,940			47,379
NONINTEREST INCOME
Service charges on deposit accounts		959		971			909			997			954		2,839			2,880
Gain (loss) on equity securities		14		(27	)		(52	)		(4	)		48		(65	)		(157	)
(Loss) gain on other real estate owned		–		–			–			(172	)		–		–			2
Earnings on bank-owned life insurance		246		227			227			196			207		700			627
Gain on sale of loans		56		69			10			23			45		135			74
Revenue from investment services		206		269			204			193			190		679			550
Gross rental income		3		–			67			132			110		70			290
Other income		259		251			431			237			263		941			822
Total noninterest income		1,743		1,760			1,796			1,602			1,817		5,299			5,088
NONINTEREST EXPENSE
Salaries and employee benefits		6,201		6,111			6,333			6,646			5,994		18,645			17,865
Occupancy expense		627		601			552			512			699		1,780			2,054
Equipment expense		203		261			240			273			297		704			969
Data processing costs		1,248		1,168			1,249			1,348			1,209		3,665			3,415
Ohio state franchise tax		399		397			397			397			398		1,193			1,180
Federal deposit insurance expense		255		256			251			285			207		762			576
Professional fees		539		557			558			660			545		1,654			1,633
Advertising expense		283		508			419			162			414		1,210			1,315
Software amortization expense		74		21			22			22			24		117			73
Core deposit intangible amortization		257		258			258			264			265		773			794
Gross other real estate owned expenses		–		–			99			120			195		99			390
Merger-related costs		–		–			–			–			22		–			472
Other expense		1,785		1,764			1,587			1,483			1,849		5,136			5,228
Total noninterest expense		11,871		11,902			11,965			12,172			12,118		35,738			35,964
Income before income taxes		2,711		4,854			4,936			4,252			4,539		12,501			16,503
Income taxes		371		690			769			709			703		1,830			2,678
NET INCOME	$	2,340	$	4,164		$	4,167		$	3,543		$	3,836	$	10,671		$	13,825
PTPP ⁽¹⁾	$	4,945	$	4,941		$	4,800		$	4,806		$	5,666	$	14,686		$	18,952

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts, unaudited)

	For the Three Months Ended															For the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2024			2024			2024			2023			2023			2024			2023
Per common share data
Net income per common share – basic	$	0.29		$	0.52		$	0.52		$	0.44		$	0.47		$	1.32		$	1.71
Net income per common share – diluted	$	0.29		$	0.52		$	0.51		$	0.44		$	0.47		$	1.32		$	1.70
Dividends declared per share	$	0.20		$	0.20		$	0.20		$	0.25		$	0.20		$	0.60		$	0.60
Book value per share (period end)	$	26.11		$	25.63		$	25.48		$	25.41		$	23.94		$	26.11		$	23.94
Tangible book value per share (period end) ^{(1) (2)}	$	20.87		$	20.37		$	20.18		$	20.10		$	18.62		$	20.87		$	18.62
Dividends declared	$	1,615		$	1,613		$	1,613		$	2,023		$	1,619		$	4,841		$	4,841
Dividend yield		2.76	%		3.34	%		3.37	%		3.06	%		3.12	%		2.78	%		3.16	%
Dividend payout ratio		69.02	%		38.74	%		38.71	%		57.10	%		42.21	%		45.37	%		35.02	%
Average shares outstanding – basic		8,071,032			8,067,144			8,091,203			8,093,478			8,092,494			8,076,440			8,106,517
Average shares outstanding – diluted		8,105,131			8,072,499			8,096,317			8,116,261			8,101,306			8,110,539			8,115,329
Period ending shares outstanding		8,071,032			8,067,144			8,067,144			8,095,252			8,092,576			8,071,032			8,092,576
Selected ratios
Return on average assets (Annualized)		0.50	%		0.91	%		0.92	%		0.78	%		0.86	%		0.77	%		1.06	%
Return on average equity (Annualized)		4.45	%		8.15	%		8.16	%		7.13	%		7.73	%		6.90	%		9.43	%
Return on average tangible common equity^{(1) (3)}		5.58	%		10.29	%		10.30	%		9.11	%		9.91	%		8.68	%		11.92	%
Efficiency⁽⁴⁾		67.93	%		67.97	%		68.68	%		68.99	%		65.65	%		68.19	%		63.10	%
Equity to assets at period end		11.34	%		11.31	%		11.32	%		11.28	%		10.80	%		11.34	%		10.80	%
Noninterest expense to average assets		0.66	%		0.64	%		0.66	%		0.68	%		0.68	%		1.94	%		2.06	%

⁽¹⁾ See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.

⁽²⁾ Calculated by dividing tangible common equity by shares outstanding.

⁽³⁾ Calculated by dividing annualized net income for each period by average tangible common equity.

⁽⁴⁾ The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income.

	For the Three Months Ended															For the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
Yields	2024			2024			2024			2023			2023			2024			2023
Interest-earning assets:
Loans receivable ⁽¹⁾		6.19	%		6.27	%		6.11	%		6.01	%		5.82	%		6.19	%		5.75	%
Investment securities ^{(1) (2)}		3.59	%		3.59	%		3.52	%		3.52	%		3.51	%		3.57	%		3.54	%
Interest-earning deposits with other banks		4.27	%		4.59	%		4.88	%		3.71	%		4.13	%		4.58	%		3.85	%
Total interest-earning assets		5.84	%		5.92	%		5.77	%		5.64	%		5.49	%		5.84	%		5.41	%
Deposits:
Interest-bearing demand deposits		2.16	%		1.93	%		1.86	%		1.67	%		1.51	%		1.99	%		1.20	%
Money market deposits		3.93	%		3.95	%		3.81	%		3.58	%		2.94	%		3.90	%		2.29	%
Savings deposits		0.71	%		0.64	%		0.58	%		0.59	%		0.58	%		0.64	%		0.80	%
Certificates of deposit		4.49	%		4.57	%		4.06	%		3.68	%		3.27	%		4.37	%		2.50	%
Total interest-bearing deposits		3.17	%		3.15	%		2.88	%		2.56	%		2.16	%		3.07	%		1.70	%
Non-Deposit Funding:
Borrowings		5.54	%		5.60	%		5.61	%		5.57	%		5.66	%		5.58	%		5.30	%
Total interest-bearing liabilities		3.41	%		3.45	%		3.23	%		2.96	%		2.48	%		3.37	%		2.03	%
Cost of deposits		2.33	%		2.30	%		2.08	%		1.81	%		1.53	%		2.24	%		1.16	%
Cost of funds		2.58	%		2.61	%		2.42	%		2.18	%		1.80	%		2.54	%		1.42	%
Net interest margin ⁽³⁾		3.46	%		3.51	%		3.54	%		3.63	%		3.82	%		3.50	%		4.09	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(unaudited)

	For the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Asset quality data	2024			2024			2024			2023			2023
(Dollar amounts in thousands, unaudited)
Nonperforming loans	$	30,078		$	15,961		$	10,831		$	10,877		$	7,717
Other real estate owned		–			–			–			–			5,792
Nonperforming assets	$	30,078		$	15,961		$	10,831		$	10,877		$	13,509
Allowance for credit losses	$	22,526		$	21,795		$	21,069		$	21,693		$	20,986
Allowance for credit losses/total loans		1.50	%		1.46	%		1.41	%		1.47	%		1.45	%
Net charge-offs (recoveries):
Quarter-to-date	$	1,377		$	(29	)	$	(68	)	$	(117	)	$	(16	)
Year-to-date		1,285			(97	)		(68	)		(31	)		87
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date		0.36	%		(0.01	%)		(0.02	%)		(0.03	%)		0.00	%
Year-to-date		0.11	%		(0.01	%)		(0.02	%)		0.00	%		0.01	%
Nonperforming loans/total loans		2.00	%		1.07	%		0.73	%		0.74	%		0.53	%
Allowance for credit losses/nonperforming loans		74.89	%		136.55	%		194.52	%		199.44	%		271.95	%
Nonperforming assets/total assets		1.62	%		0.87	%		0.60	%		0.60	%		0.75	%

MIDDLEFIELD BANC CORP.
GAAP to Non-GAAP Reconciliations

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity	For the Three Months Ended
(Dollar amounts in thousands, unaudited)	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		2023		2023
Stockholders’ equity	$	210,705	$	206,788	$	205,575	$	205,681	$	193,749
Less goodwill and other intangibles		42,225		42,482		42,740		42,998		43,103
Tangible common equity	$	168,480	$	164,306	$	162,835	$	162,683	$	150,646
Shares outstanding		8,071,032		8,067,144		8,067,144		8,095,252		8,092,576
Tangible book value per share	$	20.87	$	20.37	$	20.18	$	20.10	$	18.62

Reconciliation of Average Equity to Return on Average Tangible Common Equity	For the Three Months Ended															For the Nine Months Ended

	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
	2024			2024			2024			2023			2023			2024			2023
Average stockholders’ equity	$	209,096		$	205,379		$	205,342		$	197,208		$	196,795		$	206,691		$	196,074
Less average goodwill and other intangibles		42,350			42,607			42,654			42,972			43,232			42,512			41,018
Average tangible common equity	$	166,746		$	162,772		$	162,688		$	154,236		$	153,563		$	164,179		$	155,056
Net income	$	2,340		$	4,164		$	4,167		$	3,543		$	3,836		$	10,671		$	13,825
Return on average tangible common equity (annualized)		5.58	%		10.29	%		10.30	%		9.11	%		9.91	%		8.68	%		11.92	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)	For the Three Months Ended											For the Nine Months Ended

	September 30,		June 30,		March 31,			December 31,		September 30,		September 30,		September 30,
	2024		2024		2024			2023		2023		2024		2023
Net income	$	2,340	$	4,164	$	4,167		$	3,543	$	3,836	$	10,671	$	13,825
Add income taxes		371		690		769			709		703		1,830		2,678
Add provision (recovery of) for credit losses		2,234		87		(136	)		554		1,127		2,185		2,449
PTPP	$	4,945	$	4,941	$	4,800		$	4,806	$	5,666	$	14,686	$	18,952

MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended
	September 30,							September 30,
	2024							2023
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,507,518	$	23,441		6.19	%	$	1,425,375	$	20,899		5.82	%
Investment securities ^{(1) (2)}		193,659		1,490		3.59	%		193,966		1,457		3.51	%
Interest-earning deposits with other banks ⁽³⁾		63,580		682		4.27	%		68,587		714		4.13	%
Total interest-earning assets		1,764,757		25,613		5.84	%		1,687,928		23,070		5.49	%
Noninterest-earning assets		86,733							88,058
Total assets	$	1,851,490						$	1,775,986
Interest-bearing liabilities:
Interest-bearing demand deposits	$	217,124	$	1,181		2.16	%	$	256,153	$	975		1.51	%
Money market deposits		362,545		3,583		3.93	%		259,802		1,928		2.94	%
Savings deposits		198,775		357		0.71	%		225,216		327		0.58	%
Certificates of deposit		325,240		3,671		4.49	%		291,409		2,402		3.27	%
Short-term borrowings		113,812		1,575		5.51	%		91,201		1,258		5.47	%
Other borrowings		11,739		173		5.86	%		11,940		213		7.08	%
Total interest-bearing liabilities		1,229,235		10,540		3.41	%		1,135,721		7,103		2.48	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		396,456							431,775
Other liabilities		16,703							11,695
Stockholders’ equity		209,096							196,795
Total liabilities and stockholders’ equity	$	1,851,490						$	1,775,986
Net interest income			$	15,073						$	15,967
Interest rate spread ⁽⁴⁾						2.43	%						3.01	%
Net interest margin ⁽⁵⁾						3.46	%						3.82	%
Ratio of average interest-earning assets to average interest-bearing liabilities						143.57	%						148.62	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $270 for the three months ended September 30, 2024 and 2023, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Three Months Ended
	September 30,							June 30,
	2024							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,507,518	$	23,441		6.19	%	$	1,503,440	$	23,422		6.27	%
Investment securities^{(1) (2)}		193,659		1,490		3.59	%		193,688		1,471		3.59	%
Interest-earning deposits with other banks ⁽³⁾		63,580		682		4.27	%		61,891		706		4.59	%
Total interest-earning assets		1,764,757		25,613		5.84	%		1,759,019		25,599		5.92	%
Noninterest-earning assets		86,733							84,495
Total assets	$	1,851,490						$	1,843,514
Interest-bearing liabilities:
Interest-bearing demand deposits	$	217,124	$	1,181		2.16	%	$	209,965	$	1,009		1.93	%
Money market deposits		362,545		3,583		3.93	%		337,937		3,320		3.95	%
Savings deposits		198,775		357		0.71	%		192,577		305		0.64	%
Certificates of deposit		325,240		3,671		4.49	%		333,542		3,789		4.57	%
Short-term borrowings		113,812		1,575		5.51	%		138,656		1,920		5.57	%
Other borrowings		11,739		173		5.86	%		11,791		173		5.90	%
Total interest-bearing liabilities		1,229,235		10,540		3.41	%		1,224,468		10,516		3.45	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		396,456							396,626
Other liabilities		16,703							17,041
Stockholders’ equity		209,096							205,379
Total liabilities and stockholders’ equity	$	1,851,490						$	1,843,514
Net interest income			$	15,073						$	15,083
Interest rate spread ⁽⁴⁾						2.43	%						2.47	%
Net interest margin⁽⁵⁾						3.46	%						3.51	%
Ratio of average interest-earning assets to average interest-bearing liabilities						143.57	%						143.66	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $289 for the three months ended September 30, 2024 and June 30, 2024, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Nine Months Ended
	September 30,							September 30,
	2024							2023
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,495,834	$	69,258		6.19	%	$	1,395,438	$	59,935		5.75	%
Investment securities^{(1) (2)}		193,719		4,400		3.57	%		194,109		4,353		3.54	%
Interest-earning deposits with other banks⁽³⁾		63,203		2,166		4.58	%		66,730		1,924		3.85	%
Total interest-earning assets		1,752,756		75,824		5.84	%		1,656,277		66,212		5.41	%
Noninterest-earning assets		86,473							89,567
Total assets	$	1,839,229						$	1,745,844
Interest-bearing liabilities:
Interest-bearing demand deposits	$	212,699	$	3,167		1.99	%	$	216,044	$	1,934		1.20	%
Money market deposits		332,987		9,730		3.90	%		234,236		4,005		2.29	%
Savings deposits		197,477		951		0.64	%		267,951		1,608		0.80	%
Certificates of deposit		330,884		10,833		4.37	%		263,448		4,925		2.50	%
Short-term borrowings		132,275		5,488		5.54	%		86,670		3,373		5.20	%
Other borrowings		11,790		530		6.00	%		11,990		539		6.01	%
Total interest-bearing liabilities		1,218,112		30,699		3.37	%		1,080,339		16,384		2.03	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		397,764							458,086
Other liabilities		16,662							11,345
Stockholders’ equity		206,691							196,074
Total liabilities and stockholders’ equity	$	1,839,229						$	1,745,844
Net interest income			$	45,125						$	49,828
Interest rate spread⁽⁴⁾						2.47	%						3.38	%
Net interest margin⁽⁵⁾						3.50	%						4.09	%
Ratio of average interest-earning assets to average interest-bearing liabilities						143.89	%						153.31	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $851 and $824 for the nine months ended September 30, 2024 and September 30, 2023, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

Uncategorized

Bitcoin, Ethereum Muted, Dogecoin Rallies As Market Maintains 'Greed' Sentiment: Analyst Predicts New Peak For King Crypto As US Elections And Potential Fed Rate Cut Looms

18.10.2024 by admin

Bitcoin and Ethereum continued trading flat even as equities notched fresh record highs. However, Dogecoin moved higher on Thursday.

Cryptocurrency	Gains +/-	Price (Recorded at 9:30 p.m. EDT)
Bitcoin BTC/USD	+0.29%	$67,713.61
Ethereum ETH/USD	-0.46%	$2,606.32
Dogecoin DOGE/USD	+8.86%	$0.1353

What Happened: Bitcoin wiggled in a narrow range of $66,800-$67,400 for much of the day before kissing $68,000 overnight. The world’s largest cryptocurrency was up over 12% in the last week.

Dogecoin spiked over 8% in the last 24 hours, extending a bullish trajectory that has seen the world’s biggest meme coin gain around 26% over the week. Notably, on Thursday, Tesla and SpaceX CEO Elon Musk referenced the Department of Government Efficiency (DOGE) during a town hall in Pennsylvania, where he expressed support for the GOP presidential candidate Donald Trump

Cryptocurrency liquidations exceeded $168 million in the last 24 hours, with over $121 million in upside bets getting wiped out.

Bitcoin’s Open Interest rose by just 0.53% in the last 24 hours. Additionally, more number of institutional investors and top trader accounts on Binance were shorting Bitcoin than those taking long positions on the asset.

Market sentiment continued to be one of “Greed,” according to the Cryptocurrency Fear & Greed Index.

Top Gainers (24-Hours)

Cryptocurrency	Gains +/-	Price (Recorded at 9:30 p.m. EDT)
Popcat (POPCAT)	+10.63%	$1.35
Dogecoin (DOGE)	+8.86%	$0.1358
Litecoin (LTC)	+4.29%	$73.50

The global cryptocurrency stood at $2.32 trillion, following a marginal decrease of 0.05% in the last 24 hours.

Stocks inched higher on Thursday. The Dow Jones Industrial Average rose 161.35 points, or 0.37%, to close at a new record high of 43,239.05. The tech-heavy Nasdaq Composite closed just above the flatline to hit 18,373.61, while the S&P 500 closed down 0.02% to 5,841.47.

AI juggernaut Nvidia Corp. NVDA ended the day 0.89% higher, likely contributing to tech gains. Nvidia’s rise, in turn, was due to Taiwan Semiconductor Manufacturing Co.’s TSM stronger-than-expected third-quarter revenue.

Additionally, retail sales in September bettered estimates, boosting confidence in the state of the economy.

See More: Best Cryptocurrency Scanners

Analyst Notes: Widely followed cryptocurrency analyst Michaël van de Poppe doubled down on his previous bullish estimates for King Crypto, citing U.S. elections and a potential rate cut by the Federal Reserve.

“Just a few weeks shy of the elections and a potential renewed rate cut from the [Federal Reserve]. The ATH for Bitcoin is close,” the analyst projected.

His predictions were echoed by another analyst, Aaron Crypto, who stated that $70,000-$71,000 could be the final resistance level for Bitcoin.

$BTC Wyckoff Accumulation Update 🚨

Up $3,500 since my last tweet 🚀

◾ $70,000-$71,000 still seems like the final resistance level.

IMO, a move towards $71,000 followed by a quick dump and then break the previous ATH is a highly likely scenario.

A new ATH is coming… pic.twitter.com/GXOg6tXeNt

— Aaron Crypto (@AaronRijfers) October 17, 2024

“IMO, a move towards $71,000 followed by a quick dump and then break the previous ATH is a highly likely scenario. A new ATH is coming soon,” the analyst added.

Photo by Avi Rozen on Shutterstock

Uncategorized

3 Stock-Split Stocks That Offer Up to 111% Upside, According to Select Wall Street Analysts

18.10.2024 by admin

Although the two-year anniversary of Wall Street’s bull market is largely due to excitement surrounding artificial intelligence (AI), it’d be a mistake to overlook the key role stock-split euphoria has played in lifting select market leaders in 2024.

A stock split is a tool available to publicly traded companies that allows them to cosmetically adjust their share price and outstanding share count by the same factor. These changes are surface-scratching in the sense that they don’t alter a company’s market cap or its operating performance.

A U.S. coin split in half that's set atop a paper stock certificate of a publicly traded company. — Image source: Getty Images.

While splits come in two varieties — forward and reverse — investors overwhelmingly favor one over the other. Since reverse splits (the type designed to increase a company’s share price) are usually conducted from a position of operating weakness, it’s the type of split most investors avoid. Meanwhile, forward splits, which lower a company’s share price to make it more nominally affordable for everyday investors, are typically undertaken by businesses with well-defined competitive advantages. This is the type of split investors flock to.

Over the last nine months, more than a dozen brand-name businesses have completed a stock split. However, the outlook for these stock-split stocks differs quite a bit, based on the price targets issued by select Wall Street analysts.

In particular, three industry-leading stock-split stocks offer implied upside of up to 111%.

Nvidia: Implied upside of 45%

Perhaps it comes as no surprise that one of the stock-split stocks with the most robust upside potential, based on the forecast of at least one Wall Street analyst, is the company leading the AI revolution, Nvidia (NASDAQ: NVDA). Nvidia joined this elite club of stock-split stocks in June with a historic 10-for-1 forward split.

Analyst Hans Mosesmann of Rosenblatt Securities foresees this transformational company reaching $200 per share, which would represent a 45% return from its closing price on Oct. 14 and make Nvidia a roughly $5 trillion business.

Nvidia’s near-parabolic move higher is the result of its hardware becoming the “brains” of AI-accelerated data centers. Demand for the company’s H100 graphics processing unit (GPU) and successor Blackwell GPU architecture have been robust, which has left little room for external competitors.

When an in-demand good or service is in short supply, the laws of economics state that the price of that good service will climb until demand levels off. Nvidia’s H100 has been commanding anywhere from a 100% to 300% price premium over other AI-GPUs, which has helped push the company’s adjusted gross margin notably higher.

Additionally, Nvidia’s CUDA software platform is doing its part to keep the company’s customers loyal to its ecosystem. CUDA is the toolkit developers rely on to build large language models and squeeze as much computing power as possible out of their Nvidia GPUs.

But while Mosesmann’s target of 45% additional upside appears reachable, there are also reasons to believe Nvidia’s stock has peaked. For instance, no game-changing innovation, spanning three decades, has avoided a bubble-bursting event early in its expansion.

Furthermore, internal competition is picking up in a big way. With Nvidia’s four-largest customers developing AI-GPUs of their own, Nvidia may find that future order opportunities for its hardware are limited.

A person pressing the satellite radio button on their in-car dashboard. — Image source: Sirius XM.

Sirius XM Holdings: Implied upside of 60%

A second stock-split stock that can skyrocket, according to the view of one Wall Street analyst, is satellite-radio operator Sirius XM Holdings (NASDAQ: SIRI). Sirius XM is the only high-profile stock-split stock of 2024 that completed a reverse split (1-for-10).

Benchmark analyst Matthew Harrigan believes shares of Sirius XM are headed to $43. If accurate, this would imply upside of 60%, based on where the company’s stock closed out the Oct. 14 trading session.

Though the company’s subscriber figures have declined in back-to-back quarters, which is mostly a function of tepid auto sales, it nevertheless brings well-defined competitive advantages to the table.

The most obvious competitive edge for Sirius XM is that it’s a legal monopoly. While being the only licensed satellite-radio operator doesn’t mean the company is free of competition for listeners, it does afford Sirius XM substantial subscription pricing power.

Sirius XM’s omnichannel presence is another source of strength. Most traditional radio operators generate almost all of their revenue from advertising. Though this strategy works great during long-winded economic expansions, it can lead to problems during inevitable recessions.

Through the first-half of 2024, Sirius XM generated less than 20% of its net sales from ads and close to 77% from subscriptions. A subscription-driven model leads to highly predictable cash flow and makes it less likely that Sirius XM will see wild fluctuations in revenue and profits during shifts in the economic cycle.

The final factor on Sirius XM’s side is its historically cheap valuation. Even following a nice bounce from a recent decade-low closing price, shares of the company are valued at roughly 8 times forward-year earnings. This represents a bargain for long-term-minded investors.

Super Micro Computer: Implied upside of 111%

But the stock-split stock that offers the most robust upside, according to the prognostication of one Wall Street analyst, is customizable rack server and storage solutions specialist Super Micro Computer (NASDAQ: SMCI). Super Micro completed its first-ever forward split, 10-for-1, following the close of trading on Sept. 30.

Wall Street’s biggest Super Micro Computer bull is analyst Ananda Baruah of Loop Capital. Baruah’s $100 price target, which has been split-adjusted down from $1,000, implies scorching-hot upside potential of up to 111%.

Although Nvidia’s AI-GPUs are the hottest thing since sliced bread, there’s an opportunity for businesses throughout the data-center economy to thrive. Super Micro happens to be one of the go-to providers of customizable rack servers used in high-compute data centers. Its servers also incorporate the H100 GPU, which is presumably lifting demand for the company’s infrastructure solutions.

The revenue acceleration for Super Micro has been eyepopping. Net sales surged 110% in fiscal 2024 (ended June 30) to $14.94 billion, with the company guiding net revenue to a range of $26 billion to $30 billion in fiscal 2025. The upper bound would represent back-to-back years of triple-digit growth.

Nevertheless, it’s not all peaches and cream for this infrastructure colossus. Noted short-seller Hindenburg Research has alleged “accounting manipulation” at Super Micro, which the company has denied. Despite this denial, the U.S. Justice Department has reportedly opened an early stage probe into the company, and Super Micro has delayed the filing of its annual report. It’s not the best look for an S&P 500 company.

It’s also worth pointing out that Super Micro Computer is somewhat at the mercy of its suppliers. Just as incorporating Nvidia’s H100 GPUs has made its customizable rack servers a top choice for businesses building out their AI-accelerated data centers, the backlog of this in-demand GPU could put a low ceiling on Super Micro’s upside.

Until the company’s accounting questions are resolved and its annual report is filed with the Securities and Exchange Commission, triple-digit upside for its stock doesn’t seem attainable.

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Sean Williams has positions in Sirius XM. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

3 Stock-Split Stocks That Offer Up to 111% Upside, According to Select Wall Street Analysts was originally published by The Motley Fool