Healthcare workforce statistics – MHWWB http://mhwwb.org/ Tue, 15 Nov 2022 21:16:10 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://mhwwb.org/wp-content/uploads/2021/10/icon-34-150x150.png Healthcare workforce statistics – MHWWB http://mhwwb.org/ 32 32 The Walton Family Foundation grant extends the NWA Kiva Hub by three years https://mhwwb.org/the-walton-family-foundation-grant-extends-the-nwa-kiva-hub-by-three-years/ Tue, 15 Nov 2022 21:16:10 +0000 https://mhwwb.org/the-walton-family-foundation-grant-extends-the-nwa-kiva-hub-by-three-years/ A grant from the Walton Family Foundation (WFF) in Bentonville extends funding through 2025 for the Northwest Arkansas center of nonprofit microcredit organization Kiva. In a press release on Tuesday (November 15), Kiva Northwest Arkansas Fayetteville-based startup Junkie Foundation partner announced a three-year grant worth $470,000. WFF will continue to provide dollar-for-dollar loan funding to […]]]>

A grant from the Walton Family Foundation (WFF) in Bentonville extends funding through 2025 for the Northwest Arkansas center of nonprofit microcredit organization Kiva.

In a press release on Tuesday (November 15), Kiva Northwest Arkansas Fayetteville-based startup Junkie Foundation partner announced a three-year grant worth $470,000. WFF will continue to provide dollar-for-dollar loan funding to each new Kiva-approved small business borrower in Washington and Benton counties.

The Northwest Arkansas hub is the first Kiva loan program in Arkansas and funds a variety of small businesses and other socially beneficial activities.

Founded in 2005, Kiva is a non-profit organization based in San Francisco with offices and employees worldwide. The NWA Kiva Hub is one of over 40 hubs across the United States and Puerto Rico. The Northwest Arkansas hub opened in December 2019.

“Since launching the NWA Kiva Hub, we have helped 80 local borrowers receive $1,000 to $15,000 in crowdfunded loans,” said Martha Londagin, NWA Kiva Hub Capital Access Manager. “Of those, 76 were borrowers who identified as Black, minority or female business owners, with 34% of them identifying as Black-owned businesses.”

Kiva offers royalty-free, interest-free loans up to $15,000, crowdsourced from lenders worldwide. Because Kiva loans have 0% interest, lenders do not benefit from their loans. Neither does Kiva, which is why it’s non-profit.

Kiva’s microcredit crowdsourcing platform aims to help alleviate poverty by providing startups and underserved entrepreneurs with the funds they need to get their businesses off the ground.

“We have already seen the impact this program can have on the 80 NWA small business owners that have been supported since 2019,” Londagin said. “These are truly life-changing loans, families and communities. It’s not just a slogan; I see lives changed every month through these loans. I believe that all of us here with the Kiva program can make a difference by nurturing and growing a more diverse community of business owners in Northwest Arkansas.”

The US Kiva Loan Repayment Rate is about 78%

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Where is OppFi going? (NYSE: OPFI) https://mhwwb.org/where-is-oppfi-going-nyse-opfi/ Sun, 13 Nov 2022 07:10:00 +0000 https://mhwwb.org/where-is-oppfi-going-nyse-opfi/ EHStock/iStock via Getty Images Subprime lending platform OppFi (NYSE:OPFI) continues to struggle against a hostile macro environment that has not only reduced its commons to a fraction of their previous highs. This should always be the case expected outcome for the bears forming the 20% short stake in the company’s float, with concerns heavily focused […]]]>

EHStock/iStock via Getty Images

Subprime lending platform OppFi (NYSE:OPFI) continues to struggle against a hostile macro environment that has not only reduced its commons to a fraction of their previous highs. This should always be the case expected outcome for the bears forming the 20% short stake in the company’s float, with concerns heavily focused on OppFi’s increasingly poor record amid a protracted recession. In fact, the company’s cash position was down to $14 million, down for six consecutive quarters from a peak of $77 million in early 2021.

However, the company’s bulls are right to draw attention to the summer’s shift of the business to a customer mix more oriented toward those with better credit ratings. This should halt the successive surge in charge-offs that threatened to reduce receivables, which now account for 80% of OppFi’s total assets. Lending model tightening hasn’t slowed growth as OppFi’s most recently reported fiscal 2022 third quarter revenue is up 35% year over year. A lawsuit by the California consumer finance regulator is still pending his way through the court OppFi faces charges for its lending practices in the golden state during the pandemic. The outcome of the legal dispute is still pending, but increases the risk for an already strained balance sheet. Therefore, the Pivot OppFi has brought two key benefits.

First, it reduces the likelihood of further legal action, since the previous model relied on charging material interest rates only to break even after large writedowns. Interest rates on loans between $2,500 and $10,000 are capped at 36% plus the federal funds rate in California, and OppFi would have struggled to break even with such a low rate for its previously targeted market segment. Second, the company expects profitability to recover over the next year as a result of these changes. Default rates for new and refinanced loans have already fallen significantly.

Sales are a hit, but net income continues to fall

OppFi’s revenue for the third quarter of fiscal 2022 was $124.2 million, a 35% increase from the year-ago quarter and a huge $14.59 million above consensus estimates. This came as net lending rose to $182.7 million, an 11% increase from the year-ago quarter. Receivables increased to $407.7 million, a 39% increase over the same period last year.

The company’s target market remains 60 million American adults who are unable to access traditional credit as banks rapidly reduced their exposure to certain market segments following the 2008 global financial crisis. 64% of US consumers live paycheck to paycheck and 56% of adults have no savings to cover a $1,000 unplanned expense. Providing finance to these relatively underserved individuals remains OppFi’s core goal, even amidst its turnaround. The company charges no late payment or NSF fees on its loans, all of which come with a no-fee prepayment option.

US Federal Reserve interest rate

trade economics

Funding its accounts receivable is the difficult part, as the company depends on the difference between the cost of financing and the interest charged on the accounts receivable. This net interest rate spread is influenced by the rising interest rate of the Fed, which was last raised by 75 basis points to 4%. The company’s ability to charge higher interest rates on its receivables is being tested by the limitations of its business pivot. A rising interest rate environment would fundamentally increase defaults while increasing OppFi funding costs.

diagram
Data from YCharts

This is combined with a fall in real incomes and negative economic growth to confound a business that was still posting net write-offs as a percentage of average receivables of 66% in the third quarter. That was up from 36% in the prior-year period and reflected the legacy customer segments the company shed as a result of its move.

A strategic hub

The company posted a net loss of $700,000 for the quarter, beating consensus but still marking a continuation of what has now been six straight quarterly trends of falling profitability. The business model was profitable in the pre-rate hike period, with management aiming to get it back to that point next year, with the commons down 57% year-to-date at a 0.17x PS ratio.

Bulls first touted deteriorating economic conditions as an opportunity, as it would inherently boost underlying demand for its subprime products. Indeed, in a previous earnings call, management stated that macroeconomic conditions of multi-decade inflation peaks and rising Fed interest rates would boost credit growth. A point that supported a decision to launch a $20 million share buyback that is now almost certainly trading at a loss. And while that was happening, billings skyrocketed accordingly.

The fulcrum should help OppFi curb payment defaults and return to profitability as revenue continues to grow. But the short-term outlook for the common stock isn’t positive, and OppFi isn’t a prudent investment right now.

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SBP’s FX reserves fall to $7.95 billion https://mhwwb.org/sbps-fx-reserves-fall-to-7-95-billion/ Fri, 11 Nov 2022 01:00:00 +0000 https://mhwwb.org/sbps-fx-reserves-fall-to-7-95-billion/ KARACHI – The central bank’s foreign exchange reserves fell by $956 million, or 10.7 percent, in the week ended November 4 on external debt payments, it said Thursday. Foreign exchange reserves held by the State Bank of Pakistan (SBP) totaled $7.95 billion. The reserves cover imports for almost five weeks. Pakistan’s total foreign exchange reserves […]]]>

KARACHI – The central bank’s foreign exchange reserves fell by $956 million, or 10.7 percent, in the week ended November 4 on external debt payments, it said Thursday.

Foreign exchange reserves held by the State Bank of Pakistan (SBP) totaled $7.95 billion. The reserves cover imports for almost five weeks. Pakistan’s total foreign exchange reserves fell $958 million, or 6.5 percent, to $13.72 billion. Reserves held by commercial banks fell $2 million to $5.76 billion.

The SBP attributed a decline in reserves to external debt servicing. “Major foreign debt repayments completed during the week include the repayment of GoP [Government of Pakistan] commercial loans. Refinancing of these loans is underway, which will improve foreign exchange reserves in the coming weeks,” the statement said.

Pakistan is facing a balance of payments crisis and the foreign exchange reserve position is deteriorating by the day. Reserves remained under pressure despite receiving $1.5 billion from the Asian Development Bank (ADB) last month. “The government has said that the decline in reserves is due to commercial loan repayments and says they would refinance these loans, which would improve reserves in the future,” said Samiullah Tariq, research director at Pak-Kuwait Investment Company .

“It should be noted that the decline in reserves is not due to the current account deficit and loan repayments, which would be offset by additional borrowing,” he added.

Pakistan is expected to receive inflows from bilateral and multilateral lenders, which will not only help the country meet its debt obligations but also improve foreign exchange reserves.

China and Saudi Arabia have asked Pakistan to provide a €13 billion financial package

Saudi Arabia’s Crown Prince Mohammed bin Salman is due to visit Pakistan this month, while Islamabad is hoping to receive a $4.2 billion bailout from Riyadh.

Pakistan will receive $500 million in co-financing for the BRACE development program from the Asian Infrastructure Investment Bank (AIIB), the country’s Finance Minister Ishaq Dar said on Wednesday.

“These funds will be received by the State Bank of Pakistan in November 2022,” Dar said in a tweet. The SBP tightened controls to stem foreign currency outflows, which would help ease pressure on foreign exchange reserves.

SBP on Tuesday lowered foreign currency cash-taking limits for travel and introduced a $30,000 per person annual limit for card-based cross-border transactions. Under the revised limits, persons aged 18 and over (adults) can now withdraw the equivalent of US$5,000 in foreign currency (FCY) per visit from Pakistan. Previously, a person traveling abroad was allowed to carry a total of $10,000 worth of foreign cash.

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SB FINANCIAL GROUP, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://mhwwb.org/sb-financial-group-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Fri, 04 Nov 2022 18:42:04 +0000 https://mhwwb.org/sb-financial-group-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Cautionary Statement Regarding Forward-Looking Information This Quarterly Report on Form 10-Q, including Management's Discussion and Analysis of Financial Condition and Results of Operations, contains certain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of […]]]>

Cautionary Statement Regarding Forward-Looking Information




This Quarterly Report on Form 10-Q, including Management's Discussion and
Analysis of Financial Condition and Results of Operations, contains certain
forward-looking statements that are provided to assist in the understanding of
anticipated future financial performance. Forward-looking statements provide
current expectations or forecasts of future events and are not guarantees of
future performance. Examples of forward-looking statements include: (a)
projections of income or expense, earnings per share, the payment or non-payment
of dividends, capital structure and other financial items; (b) statements of
plans and objectives of the Company or our management or Board of Directors,
including those relating to products or services; (c) statements of future
economic performance; (d) statements regarding future customer attraction or
retention; and (e) statements of assumptions underlying such statements. Words
such as "anticipates", "believes", "plans", "intends", "expects", "projects",
"estimates", "should", "may", "would be", "will allow", "will likely result",
"will continue", "will remain", or other similar expressions are intended to
identify forward-looking statements, but are not the exclusive means of
identifying those statements. Forward-looking statements are based on
management's expectations and are subject to a number of risks and
uncertainties. Although management believes that the expectations reflected in
such forward-looking statements are reasonable, actual results may differ
materially from those expressed or implied in such statements. Risks and
uncertainties that could cause actual results to differ materially include,
without limitation:



? the ever-changing impact of the novel coronavirus (COVID-19) pandemic – the

the duration, scope and severity of which are not foreseeable, including

the possibility of a further resurgence in the spread of COVID-19 and variants

of which — to national, regional and local economies, supply chains, labor

markets and on our customers, counterparties, employees and third parties

service providers and the impact of various government responses

and non-governmental authorities on the COVID-19 pandemic, including the public

Health measures to contain the COVID-19 pandemic (e.g

such as quarantines, closures and other travel and trade restrictions,

social or other activities), the development, availability and effectiveness

    of vaccines, and the implementation of fiscal stimulus packages;


? current and future economic and financial market conditions, either national

or in the countries in which we do business, including the effects of inflation,

US Tax debts, budget and tax matters, geopolitical matters (including the

conflict a Ukraine) and, in addition, a slowdown in global economic growth

to the ongoing impact of the COVID-19 pandemic on our customers’ operations

and financial condition, any of which may adversely affect ours

The amount and composition of deposits, the quality of available securities

for purchase, the demand for credit, the ability of our borrowers to repay their loans

    loans, and the value of the collateral securing loans;



  ? changes in interest rates resulting from national and local economic

Conditions and the guidelines of the regulatory authorities, including monetary ones

policy of Board of Directors of Federal Reserve Systemwhat maybe

Negatively affect interest rates, interest margins, credit demand and interest rates

    rate sensitivity;


? the volatility of mortgage bank earnings, whether due to interest rates,

    demand, the fair value of mortgage loans, or other factors;


? Factors that may affect the performance of our loan portfolio, including

Changes in property values ​​and liquidity in our main market areas, the

financial health of our borrowers and the success of construction projects

    that we finance;


? moving away from LIBOR as the reference interest rate for financial contracts,

which could adversely affect our income and expenses and the value of various

    financial contracts;


? changes in the performance of customers, suppliers and other counterparties and

Credit rating may be different than expected due to the sequel

inflationary pressures and the ongoing impact of the COVID-19 pandemic;

? Operational Risks, Reputational Risks, Legal and Compliance Risks, and Other

risks related to potential fraud or theft by employees or outsiders,

unauthorized transactions by employees or operational errors or failures,

Disruptions or security breaches of our systems, including those resulting therefrom

   from computer viruses or cyber-attacks;




                                       31



? our ability to protect sensitive or confidential customer information

unauthorized disclosure or access via computer systems and telecommunications

    networks, including those of our third-party vendors and other service
    providers, which may prove inadequate;



  ? a failure in or breach of our operational or security systems or
    infrastructure, or those of our third-party vendors and other service
    providers, resulting in failures or disruptions in customer account

Administrative, ledger, custodial, loan or other systems, including as a

    result of cyber-attacks;


? competitive pressures and factors between financial services companies

increase significantly, including product and pricing pressures, changes

relationships with third parties and our ability to hire and retain qualified personnel

    management and banking personnel;



  ? unexpected losses of services of our key management personnel, or the
    inability to recruit and retain qualified personnel in the future;


? Risks inherent in pursuing strategic growth initiatives, including integration

    and other risks involved in past and possible future acquisitions;


? Uncertainty about the nature, timing, cost and impact of legislation or

regulatory changes in the banking industry or other impacts on the company,

including a comprehensive reform of the regulatory oversight structure of the financial sector

service industry and changes in laws and regulations related to taxes, FDIC

Insurance premiums, pensions, bankruptcy, consumer protection, rent

Regulation and Housing, Financial Accounting and Reporting, Environment

Protection, insurance, banking products and services, bank and bank holding

Corporate capital and liquidity standards, fiduciary standards, securities and

other aspects of the financial services industry and the reforms

provided for in the Coronavirus Aid, Relief and Economic Security (CARES) Act

and the successor legislation in the Consolidated Appropriations Act, 2021 and

    the American Rescue Plan Act of 2021;


? the effects of changes in federal, state and/or local tax laws may be adverse

    affect our reported financial condition or results of operations;


? The effects of changes in accounting policies and practices can be adverse

    affect our reported financial condition or results of operations;


? Litigation and regulatory compliance risk, including costs and implications

any adverse developments in any legal proceedings or other claims and the costs

and the effects of unfavorable decisions by regulators and other government agencies

    examinations or inquiries;


? continuous availability of profits and dividends state bank and excess

Capital sufficient to service our debts and pay dividends to ours

Shareholders in accordance with applicable legal and regulatory requirements;

? our ability to anticipate and successfully keep pace with technology

changes affecting the financial services industry; and

? other risks identified from time to time in the Company’s other records

the Securities and Exchange Commissionincluding the risks listed below

the heading “Item 1A. Risk Factors” of Part I of the Company’s Annual Report

   Form 10-K for the fiscal year ended December 31, 2021.




Undue reliance should not be placed on the forward-looking statements, which
speak only as of the date hereof. Except as may be required by law, the Company
undertakes no obligation to update any forward-looking statement to reflect
unanticipated events or circumstances after the date on which the statement
is
made.



                                       32





Overview of SB Financial



SB Financial Group, Inc. ("SB Financial") is an Ohio corporation and a financial
holding company registered with the Federal Reserve Board. SB Financial's
wholly-owned subsidiary, The State Bank and Trust Company ("State Bank"), is an
Ohio-chartered bank engaged in commercial banking.



Rurban Statutory Trust II ("RST II") was established in August 2005. In
September 2005, RST II completed a pooled private offering of 10,000 Trust
Preferred Securities with a liquidation amount of $1,000 per security. The
proceeds of the offering were loaned to SB Financial in exchange for junior
subordinated debentures of SB Financial with terms substantially similar to the
Trust Preferred Securities. The sole assets of RST II are the junior
subordinated debentures, and the back-up obligations, in the aggregate,
constitute a full and unconditional guarantee by SB Financial of the obligations
of RST II.


RFCBC, Inc. (“RFCBC”) is a Ohio Public company and wholly owned subsidiary of SB Finance that was incorporated Aug 2004. RFCBC acts as a loan subsidiary in the management and processing of problem loans.

State Bank Insurance, LLC (“SBI”) is a Ohio Corporation and a wholly owned subsidiary of state bank established in June 2010. SBI is an insurance company engaged in the sale of insurance products to personal and business customers state bank.

SBFG Title, LLC (“SBFG Title”) is a Ohio company that was formed March 2019. SBFG Title deals in the sale of property insurance services.

SB Captive, Inc. (“SB Captive”) is a Nevada company that was formed March 2019. SB Captive pools insurance risks among banking institutions of the same size.

Unless the context indicates otherwise, all references herein are to “we”, “us”, “our” or the “Company”. SB Finance and its consolidated subsidiaries.

Critical Accounting Principles




Note 1 to the Consolidated Financial Statements included in the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2021 describes the
significant accounting policies used in the development and presentation of the
Company's financial statements. The accounting and reporting policies of the
Company are in accordance with accounting principles generally accepted in the
United States and conform to general practices within the banking industry. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions. The
Company's financial position and results of operations can be affected by these
estimates and assumptions and are integral to the understanding of reported
results. Critical accounting policies are those policies that management
believes are the most important to the portrayal of the Company's financial
condition and results, and they require management to make estimates that are
difficult, subjective, and/or complex.



Allowance for Loan Losses - The allowance for loan losses provides coverage for
probable losses inherent in the Company's loan portfolio. Management evaluates
the adequacy of the allowance for loan losses each quarter based on changes, if
any, in underwriting activities, loan portfolio composition (including product
mix and geographic, industry or customer-specific concentrations), trends in
loan performance, regulatory guidance and economic factors. This evaluation is
inherently subjective, as it requires the use of significant management
estimates. Many factors can affect management's estimates of specific and
expected losses, including volatility of default probabilities, rating
migrations, loss severity and economic and political conditions. The allowance
is increased through provisions charged to operating earnings and reduced by net
charge-offs.



The Company determines the amount of the allowance based on relative risk
characteristics of the loan portfolio. The allowance recorded for commercial
loans is based on reviews of individual credit relationships and an analysis of
the migration of commercial loans and actual loss experience. The allowance
recorded for homogeneous consumer loans is based on an analysis of loan mix,
risk characteristics of the portfolio, fraud loss and bankruptcy experiences,
and historical losses, adjusted for current trends, for each homogeneous
category or group of loans. The allowance for loan losses relating to impaired
loans is based on the loan's observable market price, the collateral for certain
collateral-dependent loans, or the discounted cash flows using the loan's
effective interest rate.



                                       33




Regardless of the extent of the Company's analysis of customer performance,
portfolio trends or risk management processes, certain inherent but undetected
losses are probable within the loan portfolio. This is due to several factors,
including inherent delays in obtaining information regarding a customer's
financial condition or changes in their unique business conditions, the
subjective nature of individual loan evaluations, collateral assessments and the
interpretation of economic trends. Volatility of economic or customer-specific
conditions affecting the identification and estimation of losses for larger
non-homogeneous credits and the sensitivity of assumptions utilized to establish
allowances for homogenous groups of loans are also factors. The Company
estimates a range of inherent losses related to the existence of these
exposures. The estimates are based upon the Company's evaluation of imprecise
risk associated with the commercial and consumer allowance levels and the
estimated impact of the current economic environment. To the extent that actual
results differ from management's estimates, additional loan loss provisions may
be required that could adversely impact earnings for future periods.



Goodwill and Other Intangibles - The Company records all assets and liabilities
acquired in purchase acquisitions, including goodwill and other intangibles, at
fair value as required. Goodwill is subject, at a minimum, to annual tests for
impairment. Other intangible assets are amortized over their estimated useful
lives using straight-line or accelerated methods, and are subject to impairment
if events or circumstances indicate a possible inability to realize the carrying
amount. The initial goodwill and other intangibles recorded and subsequent
impairment analysis requires management to make subjective judgments concerning
estimates of how the acquired asset will perform in the future. Events and
factors that may significantly affect the estimates include, among others,
customer attrition, changes in revenue growth trends, specific industry
conditions and changes in competition. A decrease in earnings resulting from
these or other factors could lead to an impairment of goodwill that could
adversely impact earnings for future periods.



Three months ended 09/30/2022 compared to Three Months Ended September 30, 2021




Net Income: Net income for the third quarter of 2022 was $3.3 million compared
to net income of $4.1 million for the third quarter of 2021, a decrease of 18.5
percent. Diluted earnings per share ("DEPS") of $0.47 were down 19.0 percent
from DEPS of $0.58 for the third quarter of 2021. Net income for the third
quarter of 2022 was positively impacted by the Company's recapture of temporary
impairment of $0.07 million on its mortgage servicing rights, while net income
for the 2021 third quarter was positively impacted by a recovery of mortgage
servicing rights of $0.25 million. Net income for the third quarter of 2022 was
negatively impacted by the significant decline in mortgage loan volume and loan
sales, as compared to the same period in 2021, as rising rates have nearly
eliminated all refinance activity and continued compression of available housing
inventory has constrained new purchase volume. Mortgage loan volume was down
over 55 percent during the third quarter of 2022, and a lower percentage of
originated volume was sold on the secondary market, as compared to the same
period in 2021. In addition, Paycheck Protection Program ("PPP") related revenue
compared to the prior year was down by $1.13 million.



Provision for Loan Losses: The third quarter provision for loan losses was zero
as compared to $0.3 million for the prior year quarter. Net recoveries for the
quarter were $23,000 compared to net recoveries of $206,000 for the year-ago
quarter. Total delinquent loans ended the quarter at $2.9 million, or 0.31
percent of total loans, which is flat to the prior year.



Asset Quality Review - For the Period Ended      September 30,       September 30,
($ in thousands)                                     2022                2021

Net recoveries - QTD/YTD                            ($23)/($19)       ($206)/($188)
Nonaccruing loans                                         3,746               3,188
Accruing Troubled Debt Restructures                         667            

805

Nonaccruing and restructured loans                        4,413            

3,993

OREO / Other Assets Owned (OAO)                             756            

1,601

Nonperforming assets                                      5,169            

5,594

Nonperforming assets/Total assets                          0.40 %              0.42 %
Allowance for loan losses/Total loans                      1.49 %              1.63 %
Allowance for loan losses/Nonperforming loans             313.2 %          
  351.5 %




                                       34




Consolidated Revenue: Total revenue, consisting of net interest income and
noninterest income, was $14.5 million for the third quarter of 2022, a decrease
of $2.2 million, or 13.2 percent, from the $16.7 million generated during the
third quarter of 2021.



Net interest income ("NII") for the third quarter of 2022 was $10.4 million,
which was up $0.4 million from the prior year third quarter's $10.0 million.
Comparing the third quarter of 2022 to the prior year third quarter, the
Company's earning assets decreased $43.8 million, but the average yield on
earning assets increased by 47 basis points. The net interest margin, for the
third quarter of 2022 was 3.46 percent compared to 3.21 percent for the third
quarter of 2021. Funding costs (interest paid to consumers and other entities)
for interest bearing liabilities for the third quarter of 2022 were 0.58 percent
compared to 0.44 percent for the prior year third quarter. PPP fees and interest
increased the 2021 net interest margin by 31 basis points.



Noninterest income was $4.0 million for the third quarter of 2022, which was
down $2.6 million from the prior year third quarter's $6.6 million. In addition
to the mortgage revenue detailed below, wealth management revenue was $0.9
million for the third quarter of 2022. Recapture of our mortgage servicing
rights impairment increased noninterest income by $0.07 million in the quarter.
Our title agency contributed revenue of $0.5 million in the third quarter of
2022, even to the prior year. Noninterest income as a percentage of average
assets for the third quarter of 2022 was 1.24 percent compared to 1.99 percent
for the prior year third quarter.



State Bank originated $68.6 million of mortgage loans for the third quarter of
2022, of which $39.2 million was sold with the remainder of loans held for
investment. This compares to $152.6 million originated for the third quarter of
2021, of which $123.1 million was sold with the remainder of loans held for
investment. These third quarter 2022 originations and subsequent sales resulted
in $0.9 million of gains, down $3.1 million from the gains for the third quarter
of 2021. Net mortgage banking revenue was $1.4 million for the third quarter of
2022 compared to $4.1 million for the third quarter of 2021. The 2022 third
quarter included a $0.07 million recapture of our mortgage servicing rights
impairment compared to a $0.25 million valuation recapture for the third quarter
of 2021. As detailed above, mortgage loan originations have decreased
significantly in 2022 as rising rates have reduced refinance activity and
compressed inventories of available housing have constrained new purchase
volume.



Consolidated Noninterest Expense:Noninterest expense for the third quarter of
2022 was $10.4 million, which was down $0.9 million compared to $11.3 million in
the prior-year third quarter. The third quarter of 2022 included lower
commission and incentives on mortgage sales, offset by higher equipment expense
due to several technology related improvements.



Income Taxes: Income taxes for the third quarter of 2022 were $0.7 million
(effective interest rate of 18.2 percent). $1.0 million (effective interest rate of 19.8 percent) for the third quarter of 2021.

Nine months over 09/30/2022 compared to Nine Months Ended September 30, 2021




Net Income: Net income for the first nine months of 2022 was $9.0 million
compared to net income of $14.9 million for the first nine months of 2021, a
decrease of 39.9 percent. DEPS of $1.27 were down 38.9 percent from DEPS of
$2.08 for the first nine months of 2021. Net income for both periods were
positively impacted by the recapture of the Company's temporary mortgage
servicing rights impairment in the amounts of $1.2 million and $2.9 million for
the first nine months of 2022 and 2021, respectively. Net income for the first
nine months of 2022 was negatively impacted by the significant decline in
mortgage loan volume and loan sales, as compared to the same period in 2021, as
rising rates reduced refinance activity and compressed inventories of available
housing constrained new purchase volume. Mortgage loan volume was down nearly 45
percent from the prior year and a lower percentage of originated volume was
sold
on the secondary market.


Credit growth since December 31, 2021 was $102.7 million with remaining balance on PPP loans up to $0.1 million at 09/30/2022.




Provision for Loan Losses: Provision for loan losses for the first nine months
of 2022 was $0.0 million, compared to $1.05 million for the year-ago period. The
Company had net recoveries of $19,000 for the first nine months of 2022 compared
to net recoveries of $188,000 for the year-ago period.



Consolidated Revenue: Total revenue, consisting of net interest income and noninterest income, was $43.0 million for the first nine months of 2022 a decrease of $9.9 millionor 18.7 percent, from $52.9 million generated in the first nine months of 2021.



                                       35





Net interest income was $28.5 million for the first nine months of 2022, which
was down $0.3 million from $28.8 million for the prior year first nine months.
Included in NII for the first nine months of 2022 was $0.1 million in fees and
interest from PPP loans compared to $3.3 million for the prior year first nine
months. Comparing the first nine months of 2022 to the first nine months of
2021, the Company's earning assets decreased $4.4 million, and the yield on
average earning assets decreased 2 basis points. The net interest margin for the
first nine months of 2022 was 3.09 percent compared to 3.12 percent for the
first nine months of 2021. Funding costs for interest bearing liabilities for
the first nine months of 2022 were 0.45 percent compared to 0.46 percent for the
prior year similar period.



Noninterest income was $14.5 million for the first nine months of 2022, which
was down $9.6 million from $24.1 million for the prior year first nine months.
In addition to the mortgage revenue detailed below, wealth management revenue
was $2.8 million. During the first nine months, we sold $3.7 million in Small
Business Administration ("SBA") loans, with gains on sale of $0.5 million. Our
title agency contributed revenue of $1.8 million in the first nine months of
2022. Noninterest income as a percentage of average assets for the first nine
months of 2022 was 1.47 percent compared to 2.44 percent for the prior year
first nine months.



State Bank originated $261.4 million of mortgage loans for the first nine months
of 2022, which resulted in $161.2 million in loan sales, with the remainder of
loans held for investment. This compares to $473.3 million originated for the
first nine months of 2021, of which $378.9 million of loans were sold with the
remainder of loans held for investment. These originations and subsequent sales
resulted in $3.7 million of gains for the first nine months of 2022, compared to
$14.1 million of gains for the first nine months of 2021. Net mortgage banking
revenue was $6.1 million for the first nine months of 2022 compared to $16.4
million for the first nine months of 2021.



Consolidated Noninterest Expense:Noninterest expense for the first nine months
of 2022 was $32.0 million, which was down $1.2 million compared to the $33.2
million in the prior-year first nine months. For the year to date in 2022, lower
incentives on mortgage activity and higher unfilled salaried positions
throughout the Company, were offset by higher data processing and professional
fee expense due to expanded implementation of technology solutions.



Income Taxes: Income taxes for the first nine months of 2022 were $2.0 million
(effective rate of 18.1 percent) compared to $3.7 million (effective rate of
19.8 percent) for the first nine months of 2021. In addition to the impact of
the lower pretax income, the first nine months of 2022 was impacted by having
additional earning assets that are tax free in nature.



Changes in Financial Position

Total assets at September 30, 2022 were $1.30 billion, a decrease of $27.5
million, or 2.1 percent, since December 31, 2021. Total loans, net of unearned
income, were $925.2 million as of September 30, 2022, up $102.7 million, or 12.5
percent, from year-end. PPP loan balances of $0.1 million and $2.0 million were
included in our total loans at September 30, 2022 and December 31, 2021,
respectively.



Total deposits at September 30, 2022 were $1.09 billion, a decrease of $27.2
million, or 2.4 percent, since 2021 year end. Borrowed funds (consisting of FHLB
advances, federal funds borrowed, REPO agreements, trust preferred securities
and subordinated debt) totaled $84.6 million at September 30, 2022. This is up
from year-end 2021 when borrowed funds totaled $50.7 million due to an increase
in REPO agreements and FHLB advances. Total equity for the Company of $114.6
million now stands at 8.8 percent of total assets compared to the December 31,
2021 level of $144.9 million and 10.9 percent of total assets. The reduction was
due to a $31.6 million increase in the unrealized loss on the Company's
investment portfolio.



The allowance for loan loss of $13.8 million is flat from the December 2021 year
end level. The Company's loan growth was offset by continued improvement of
overall asset quality metrics, including reductions in non-performing assets and
delinquencies.



                                       36





Other liabilities are down $4.3 million from December 31, 2021 due to escrow
balances held for our serviced mortgage customers at December 31 that were paid
in the first quarter of 2022, and a reclassification of deferred taxes resulting
from a change in unrealized losses in the securities portfolio.



Capital Resources



As of September 30, 2022, based on the computations for the FFIEC 041
Consolidated Reports of Condition and Income filed by State Bank with the
Federal Reserve Board, State Bank was classified as well capitalized under the
regulatory framework for prompt corrective action. To be categorized as well
capitalized, State Bank must maintain capital ratios as set forth in the table
below. There are no conditions or events since September 30, 2022 that
management believes have changed State Bank's capital classification.



state banks actual capital levels and ratios as of 09/30/2022 and
December 31, 2021 are shown in the table below. Capital levels are presented for state bank only as the company is exempt from quarterly reporting of the amount of capital at holding company level:



                                                                                          To Be Well Capitalized Under
                                                         For Capital Adequacy               Prompt Corrective Action
                                Actual                         Purposes                            Procedures
($ in thousands)         Amount         Ratio          Amount             Ratio             Amount                Ratio

As of September 30,
2022
Tier I Capital to
average assets          $ 142,787         10.95 %   $      52,136              4.0 %   $          65,170               5.0 %
Tier I Common equity
capital to
risk-weighted assets      142,787         13.32 %          48,221              4.5 %              69,653               6.5 %

Tier I Capital to
risk-weighted assets      142,787         13.32 %          64,295              6.0 %              85,727               8.0 %
Total Risk-based
capital to
risk-weighted assets      156,187         14.58 %          85,727          
   8.0 %             107,158              10.0 %

As of December 31,
2021
Tier I Capital to
average assets          $ 133,202         10.18 %   $      52,324              4.0 %   $          65,405               5.0 %
Tier I Common equity
capital to
risk-weighted assets      133,202         13.94 %          42,986              4.5 %              62,090               6.5 %

Tier I Capital to
risk-weighted assets      133,202         13.94 %          57,314              6.0 %              76,419               8.0 %
Total Risk-based
capital to
risk-weighted assets      145,165         15.20 %          76,419          
   8.0 %              95,523              10.0 %




Regulatory capital requirements commonly referred to as "Basel III" were fully
phased in as of January 1, 2019 and are reflected in the September 30, 2022
capital table above. Management opted out of the accumulated other comprehensive
income treatment under the new requirements and, as such, unrealized gains and
losses from available-for-sale securities will continue to be excluded from
State Bank's regulatory capital.



                                       37





LIQUIDITY



Liquidity relates primarily to the Company's ability to fund loan demand, meet
deposit customers' withdrawal requirements and provide for operating expenses.
Assets used to satisfy these needs consist of cash and due from banks, federal
funds sold, interest-earning deposits in other financial institutions,
securities available-for-sale and loans held for sale. These assets are commonly
referred to as liquid assets. Liquid assets totaled $276.3 million at September
30, 2022, compared to $422.9 million at December 31, 2021.



Liquidity risk arises from the possibility that the Company may not be able to
meet the Company's financial obligations and operating cash needs or may become
overly reliant upon external funding sources. In order to manage this risk, the
Board of Directors of the Company has established a Liquidity Policy that
identifies primary sources of liquidity, establishes procedures for monitoring
and measuring liquidity and quantifies minimum liquidity requirements. This
policy designates the Asset/Liability Committee ("ALCO") as the body responsible
for meeting these objectives. The ALCO reviews liquidity regularly and evaluates
significant changes in strategies that affect balance sheet or cash flow
positions. Liquidity is centrally managed on a daily basis by the Company's
Chief Financial Officer and Asset Liability Manager.



The Company's commercial real estate, first mortgage residential, agricultural
and multi-family mortgage portfolio of $730.9 million at September 30, 2022 and
$645.1 million at December 31, 2021, which can and has been used to
collateralize borrowings, is an additional source of liquidity. Management
believes the Company's current liquidity level, without these borrowings, is
sufficient to meet its liquidity needs. At September 30, 2022, all eligible
commercial real estate, first mortgage residential and multi-family mortgage
loans were pledged under an FHLB blanket lien.



The cash flow statements for the periods presented provide an indication of the
Company's sources and uses of cash, as well as an indication of the ability of
the Company to maintain an adequate level of liquidity. A discussion of the cash
flow statements for the nine months ended September 30, 2022 and 2021 follows.



The Company experienced positive cash flows from operating activities for the
nine months ended September 30, 2022 and September 30, 2021. Net cash provided
by operating activities was $12.8 million for the nine months ended September
30, 2022 and $6.0 million for the nine months ended September 30, 2021.
Highlights for the current year include $165.3 million in proceeds from the sale
of loans, which is down $213.6 million from the prior year. Originations of
loans held for sale was a use of cash of $158.3 million, which is down from the
prior year by $213.2 million. For the nine months ended September 30, 2022,
there was a gain on sale of loans of $4.2 million, and depreciation and
amortization of $1.6 million.



The Company experienced negative cash flows from investing activities for the
nine months ended September 30, 2022 and September 30, 2021. Net cash used in
investing activities was $133.0 million for the nine months ended September 30,
2022 and $77.9 million for the nine months ended September 30, 2021. Highlights
for the current year include purchases of available-for-sale securities of $50.6
million. These cash payments were offset by $29.9 million in proceeds from
maturities and sales of securities, which is down $4.7 million from the prior
year nine-month period. The Company experienced a $102.7 million increase in
loans, which is up $127.4 million from the prior year nine-month period.



The Company experienced negative cash flows from financing activities for the
nine months ended September 30, 2022 and positive cash flows for the nine months
ended September 30, 2021. Net cash used by financing activities was $1.4 million
for the nine months ended September 30, 2022 and net cash provided by financing
activities was $69.2 million for the nine months ended September 30, 2021.
Highlights for the current period include a $45.9 million decrease in
transaction deposits for the nine months ended September 30, 2022, which is down
$179.5 million from the prior year. Certificates of deposit increased by $18.7
million in the current year compared to a decrease of $71.0 million for the
prior year nine-month period. Net proceeds from Federal Home Loan Bank advances
for the nine months ended September 30, 2022 were $29.5 million, an increase of
$27.0 million from the prior year nine-month period.



                                       38





ALCO uses an economic value of equity ("EVE") analysis to measure risk in the
balance sheet incorporating all cash flows over the estimated remaining life of
all balance sheet positions. The EVE analysis calculates the net present value
of the Company's assets and liabilities in rate shock environments that range
from -400 basis points to +400 basis points. The likelihood of a significant
decrease in rates as of September 30, 2022 and December 31, 2021 was considered
unlikely given the current interest rate environment and therefore, only the
minus 100 and 200 basis point rate change was included in this analysis. The
results are reflected in the following tables for September 30, 2022 and
December 31, 2021.



                            Economic Value of Equity
                               September 30, 2022
                                ($ in thousands)



Change in rates     $ Amount      $ Change       % Change
+400 basis points   $ 291,715     $   8,927           3.16 %
+300 basis points     292,161         9,374           3.31 %
+200 basis points     290,280         7,492           2.65 %
+100 basis points     287,523         4,736           1.67 %
Base Case             282,788             -              -
-100 basis points     273,051        (9,737 )        -3.44 %
-200 basis points     257,735       (25,053 )        -8.86 %




                            Economic Value of Equity
                               December 31, 2021
                                ($ in thousands)

Change in rates     $ Amount      $ Change      % Change
+400 basis points   $ 278,254     $  35,684         14.71 %
+300 basis points     273,190        30,620         12.62 %
+200 basis points     265,711        23,142          9.54 %
+100 basis points     256,110        13,540          5.58 %
Base Case             242,570             -             -
-100 basis points     217,281       (25,289 )      -10.43 %



Off-balance sheet borrowings:

Significant additional off-balance-sheet liquidity is available in the form of
FHLB advances and unused federal funds lines from correspondent banks.
Management expects the risk of changes in off-balance-sheet arrangements to
be
immaterial to earnings.



The Company's commercial real estate, first mortgage residential, agricultural
and multi-family mortgage portfolios in the total amount of $732.4 million were
pledged to meet FHLB collateralization requirements as of September 30, 2022.
Based on the current collateralization requirements of the FHLB, the Company had
approximately $92.3 million of additional borrowing capacity at September 30,
2022. The Company also had $154.6 million in unpledged securities available to
pledge for additional borrowings.



The Company's contractual obligations as of September 30, 2022 were comprised of
long-term debt obligations, other debt obligations, operating lease obligations
and other long-term liabilities. Long-term debt obligations were comprised of
trust preferred securities of $10.3 million, and subordinated debt of $20.0
million, or $19.5 million, net of issuance costs. Total time deposits at
September 30, 2022 were $175.2 million, of which $144.2 million mature beyond
one year.


In addition, as of September 30, 2022, the Company had commitments to sell
mortgage loans totaling $9.3 million. The Company believes that it has adequate
resources to fund commitments as they arise and that it can adjust the rate on
savings certificates to retain deposits in changing interest rate environments.
If the Company requires funds beyond its internal funding capabilities, advances
from the FHLB of Cincinnati and other financial institutions are available.


                                       39





ASSET LIABILITY MANAGEMENT



Asset liability management involves developing, executing and monitoring
strategies to maintain appropriate liquidity, maximize net interest income and
minimize the impact that significant fluctuations in market interest rates would
have on current and future earnings. The business of the Company and the
composition of its balance sheet consist of investments in interest-earning
assets (primarily loans, mortgage-backed securities, and securities available
for sale) which are primarily funded by interest-bearing liabilities (deposits
and borrowings). With the exception of specific loans which are originated and
held for sale, all of the financial instruments of the Company are for other
than trading purposes. All of the Company's transactions are denominated in U.S.
dollars with no specific foreign exchange exposure. In addition, the Company has
limited exposure to commodity prices related to agricultural loans. The impact
of changes in foreign exchange rates and commodity prices on interest rates are
assumed to be insignificant. The Company's financial instruments have varying
levels of sensitivity to changes in market interest rates resulting in market
risk. Interest rate risk is the Company's primary market risk exposure; to a
lesser extent, liquidity risk also impacts market risk exposure.



Interest rate risk is the exposure of a banking institution's financial
condition to adverse movements in interest rates. Accepting this risk can be an
important source of profitability and shareholder value; however, excessive
levels of interest rate risk could pose a significant threat to the Company's
earnings and capital base. Accordingly, effective risk management that maintains
interest rate risks at prudent levels is essential to the Company's safety
and
soundness.


Evaluating a financial institution's exposure to changes in interest rates
includes assessing both the adequacy of the management process used to control
interest rate risk and the organization's quantitative level of exposure. When
assessing the interest rate risk management process, the Company seeks to ensure
that appropriate policies, procedures, management information systems and
internal controls are in place to maintain interest rate risks at prudent levels
of consistency and continuity. Evaluating the quantitative level of interest
rate risk exposure requires the Company to assess the existing and potential
future effects of changes in interest rates on its consolidated financial
condition, including capital adequacy, earnings, liquidity and asset quality
(when appropriate).



The Federal Reserve Board together with the Office of the Comptroller of the
Currency and the Federal Deposit Insurance Corporation adopted a Joint Agency
Policy Statement on Interest Rate Risk effective June 26, 1996. The policy
statement provides guidance to examiners and bankers on sound practices for
managing interest rate risk, which will form the basis for ongoing evaluation of
the adequacy of interest rate risk management at supervised institutions. The
policy statement also outlines fundamental elements of sound management that
have been identified in prior Federal Reserve Board guidance and discusses the
importance of these elements in the context of managing interest rate risk.
Specifically, the guidance emphasizes the need for active board of director and
senior management oversight and a comprehensive risk management process that
effectively identifies, measures and controls interest rate risk.



Financial institutions derive their income primarily from the excess of interest
collected over interest paid. The rates of interest an institution earns on its
assets and owes on its liabilities generally are established contractually for a
period of time. Since market interest rates change over time, an institution is
exposed to lower profit margins (or losses) if it cannot adapt to interest rate
changes. For example, assume that an institution's assets carry intermediate or
long-term fixed rates and that those assets are funded with short-term
liabilities. If market interest rates rise by the time the short-term
liabilities must be refinanced, the increase in the institution's interest
expense on its liabilities may not be sufficiently offset if assets continue to
earn at the long-term fixed rates. Accordingly, an institution's profits could
decrease on existing assets because the institution will either have lower net
interest income or possibly, net interest expense. Similar risks exist when
assets are subject to contractual interest rate ceilings, or rate-sensitive
assets are funded by longer-term, fixed-rate liabilities in a declining rate
environment.



                                       40





There are several ways an institution can manage interest rate risk including:
1) matching repricing periods for new assets and liabilities, for example, by
shortening or lengthening terms of new loans, investments, or liabilities; 2)
selling existing assets or repaying certain liabilities; and 3) hedging existing
assets, liabilities, or anticipated transactions. An institution might also
invest in more complex financial instruments intended to hedge or otherwise
change interest rate risk. Interest rate swaps, futures contracts, options on
futures contracts, and other such derivative financial instruments can be used
for this purpose. Because these instruments are sensitive to interest rate
changes, they require management's expertise to be effective. The Company does
not currently utilize any derivative financial instruments to manage interest
rate risk. As market conditions warrant, the Company may implement various
interest rate risk management strategies, including the use of derivative
financial instruments.

© Edgar Online, Source insights

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Latest financial reports published for Chico Council Races – Chico Enterprise-Record https://mhwwb.org/latest-financial-reports-published-for-chico-council-races-chico-enterprise-record/ Sat, 29 Oct 2022 11:04:11 +0000 https://mhwwb.org/latest-financial-reports-published-for-chico-council-races-chico-enterprise-record/ CHICO — The latest financial documents for the Chico City Council’s four races expired Friday and were opened for public inspection. This race consists of eight candidates spread across four districts across Chico. Of the races there are only two with incumbent incumbents. During each election cycle, candidates who have raised enough funds to meet […]]]>

CHICO — The latest financial documents for the Chico City Council’s four races expired Friday and were opened for public inspection.

This race consists of eight candidates spread across four districts across Chico. Of the races there are only two with incumbent incumbents.

During each election cycle, candidates who have raised enough funds to meet the threshold must submit a 460 document to the county or city.

This document breaks down campaign finances such as funds raised, loans, expenses, and a list of all donors. Donors can be individuals, corporations, and political action committees.

City Council races consist of the following:

District 2: Morgan Kennedy vs. Kasey Reynolds

District 3: Dale Bennett vs. Monica McDaniel

District 4: Nichole Nava vs. Addison Winslow

District 6: Jesica Giannola vs. Tom Van Overbeek

The latest documents show funds raised and spent between September 25th and October 22nd. In the previous group of 460, the money collected and spent was shown for July 1st through September 24th.

The election will take place on November 8, 2022.

DISTRICT 2

Morgan Kennedy

Previously, Kennedy raised $13,316 in cash donations and had raised $10,000 in loans plus $1,286 in donations in kind. The most recent time frame shows that she has raised an additional $3,549 without taking on any additional borrowing, bringing her total cash contributions to $28,151.

Your campaign spent $3,867.30 over the last period, for a total spend of $14,162.11.

The following donations to Kennedy’s campaign based on the latest documents:

$100-199: Priscilla Ranford, Shaun-Adrian Chpfia, Heather Spiers, Amanda Jackson, Sheldon Prasier, Joanne Brasch, Michael McGinnis, James Peck

$200-299: Carole Ross, Edward Caldwell, Scott Rushing

$500-599: Tami Ritter, California Nurses Association PAC

Kasey Reynolds

Reynolds added $13,250 to her previous $19,685, bringing her total contributions to $33,935 when accounting for a single $1,000 loan.

Your campaign spent a total of $15,747.95.

The following people and groups have recently donated to the Reynolds campaign:

$100-199: Annmarie Kelly, Greg Kelly, Richard Allen Barnett, Robert L Berry, Timothy C Colbie, Michelle Cooper, Bob Evans, Tom Fiscus, Mike Maloney, Susan Murphy, Becky Stofa, Tina Wilson, FW Zanker, Kevin Spellman, Timothy C Colbie, Catherine Leyden, Kathryn M Moran, Holly Sitton

$200-299: Great Northern Farm Management LLC, David Halimi, Georgie Bellin, Nancy Dias, Thomas Digliovanni, Curtis Grima, Tod Kimmelshue, MFC Investments, Dianna Wright, Tom Dowd, D Charlene Gonsalves, Samantha Lewis Rohwer, John N Thorpe, Ashley Petersen , David Petersen, Jolene Francis, Judy Sitton

$300-399: Sherry Brouhard

$500-599: Kirk Kimmelshue, Diane Mihanpajouh, Dawn Ostrander, Peace Officers Research Association of California PAC, Thomas T. Van Overbeek, Scott Hubbard, Stacey Hubbard, Ray Murdoch Properties, 786 Events, Marilyn S. Everett, Geoffrey Farrar, Modern Building Inc.

DISTRICT 3

Dale Bennett

Bennett, a sitting councilman, has raised a total of $18,123, with $1,949 from the last period. Bennet had previously taken out a $10,000 loan.

His campaign spent $4,947.75.

Bennett’s most recent donors are as follows:

$100-199: Cleanrite Inc., Tim Colbie, Don Fowler, Tovey Giezentanner, William Knudsen, Mark Pierce, Charles Priddy, Raymond Sandelman, Stuart Thompson

$200-299: Tom Dowd, Dino Corbin, Robert Harp, Frank Solinsky

Monica McDaniel

McDaniel has raised a total of $15,368, of which $8,201 is from the last period. She has yet to borrow and has received a total of $2,130 in donations in kind.

Of that amount, her campaign spent $7,344.37.

The following people have donated to McDaniel:

$100-199: Michael Magliari, Lisa Freeman-Wood, Savannah McDaniel Berg, Ann Schwab, David Waldron, Melissa Hormann, Katy O’Bryan, Ann Schulte, Mary Smith-Peters, Susan Steiner, Elizabeth Devereaux, Bryce Goldstein, Sheldon Prasier, Stephen Cummins, Karl Ory, Muir Hughes, Robert Davidson, Mary Latimer, Dale Steiner, Steve Watson, Margaret Worley, Abbie Moriarty, James Peck

$200-299: Pat Macias, Dennis Deromedi, Butte County Healthcare Coalition, William Sheridan, Michael McGinnis, Robert Dresden, Todd Hall, Erin Hannigan

$300-399: Susan Schrader, Nancy Patton

$500-599: Warren Haskell, California Nurses Association PAC, California Real Estate PAC, Linda Barker

DISTRICT 4

Nichole Nava

Nava has raised a total of $25,070 through cash donations with no credit received. In the last period, Nava raised $7,970.

Your cash payments total $12,999.47.

Nava’s donors are as follows:

$100-199: Lauren Avilla, Bill Donovan, John Kermen, Kathryn Moran, Damon Posey, Phyllis Sandy, Marilyn Scocozza, Kevin Spellman, Gerard Vanderleun, Dianna Wright

$200-299: SF Bud Caldwell, Connelly for District 1, Patrick Conroy, Steven Depa, Tom Dowd, D. Charlene Gonsalves, Tod Kimmelshue, Samantha Lewis Rohwer, Mary Murphy-Waldorf

$500-599: California Real Estate PAC, Sheryl Campbel, Chico Farm & Orchard Inc., Lewis Everett, Barry Jones, Kent Needham, Peace Officers Research Association of California PAC, Ray Murdoch Properties, Gilberto Sanchez

Addison Winslow

Winslow has donated a total of $24,192.27 with a $1,700 loan and $6,586 more recently.

His campaign spent $21,573.80.

The following people have donated to Winslow:

$100-199: Bryce Goldstein, Michael Magliari, Jade Huston, Charlie Yarbrough, Robert Jones, Seana O’Shaughnessy, Ann Schwab, Margaret Worley, Lawrence Halstead, Tami Ritter, Alexandra Brown, Theresa Glaske, Charles Withuhn, Michael McGinnis

$200-299: Nicole Earl, Kim Nott, Lawrence Janeway, Sheldon Prasier, Steve Kennedy, Howard Nathan, Richard Harriman, Monica McDaniel, Adam Fedeli, Daniel Gonzales

$300-399: Scott Gründl, Scott Rushing

$500-599: California Nurses Association PAC, Karl Ory

DISTRICT 6

Jessica Giannola

So far, Giannola has raised $9,136, of which $3,068 was raised in the last period. She has received $716 in donations in kind.

Your campaign spent $5,481.88

The following are Giannola’s campaign donors:

$100-199: Democratic Action Club by Chico PAC, Martha Dunlap, Kathleen Hassig, Heather Schlaff, Priscilla L. Hanford, John Merz, Lollie De Young

$200-299: Dennis Deromedi, Felipe Garcia

$500-599: No to Butte County Gerrymandering, California Nurses Association PAC, Linda Baker

Tom van Overbeek

Van Overbeek raised the most money with total contributions of $66,266.22. He has recently received $4,321.22 in donations and taken out $20,000 in loans.

Van Overbeek spent a total of $51,818.98.

Van Overbeek’s donors are as follows:

$100-199: Richard Barnett, Josh FW Cook, Law Firms of Ferris & Selby, Rolls Anderson and Rolls Civil Engineers

$200-299: Kathleen Crader, Lance Tennis, Joan Stewart, Frank Solinsky

$500-599: California Real Estate PAC, Doug LaMalfa Committee, James Ledgerwood, Peace Officers Research Association of California PAC, Randall Schiff, Barbara Weibel

]]>
First Northern Community Bancorp reports third quarter 2022 results https://mhwwb.org/first-northern-community-bancorp-reports-third-quarter-2022-results/ Wed, 26 Oct 2022 23:32:00 +0000 https://mhwwb.org/first-northern-community-bancorp-reports-third-quarter-2022-results/ Net loan growth excluding PPP lending increased 28.8% year-on-year1 DIXON, California, October 26, 2022–(BUSINESS WIRE)–First Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company of First Northern Bank (“First Northern” or the “Bank”), today reported net income of $11.2 million, or 0, $80 per diluted share for the nine months ended September 30, 2022, up […]]]>

Net loan growth excluding PPP lending increased 28.8% year-on-year1

DIXON, California, October 26, 2022–(BUSINESS WIRE)–First Northern Community Bancorp (the “Company”, OTCQB: FNRN), holding company of First Northern Bank (“First Northern” or the “Bank”), today reported net income of $11.2 million, or 0, $80 per diluted share for the nine months ended September 30, 2022, up 1.5% from net income of $11.0 million or $0.77 per diluted share for the nine months ended September 30, 2022 September 2021.

Net income for the quarter ended September 30, 2022 was $4.6 million, or $0.33 per diluted share, an increase of 1.3% from net income of $4.5 million, or $0 $.32 per diluted share for the quarter ended September 30, 2021.

The provision for credit losses totaled $300,000 for the three months ended September 30, 2022 compared to a release of the provision for credit losses of $1,800,000 for the same period in 2021. The provision for credit losses was in the nine months ended September 30, 2022 for a total of $900,000. compared to a $1,500,000 release of the provision for credit losses for the same period in 2021. The current period provision for credit losses is primarily due to current year lending growth. The release of the provision for loan losses in the prior period was primarily due to a decrease in the specific provision for loans to a borrower.

Total assets as of September 30, 2022 were $1.93 billion, an increase of $8.2 million or 0.4% compared to September 30, 2021. Total deposits as of September 30, 2022 were 1 $.80 billion, up $49.9 million, or 2.9%. , compared to September 30, 2021. Total net loans (including loans totaling $0.5 million granted under the SBA’s Paycheck Protection Program (PPP)) as of September 30, 2022 were $971.2 million, an increase of $145.6 million, or 17.6%, compared to total net loans (including loans held for sale and loans totaling $72.0 million included in the of the SBA’s PPP) of $825.6 million as of September 30, 2021. The increase in net lending was primarily due to originations of commercial real estate, agricultural and residential mortgage loans, partially offset by repayments, and the ordinance and the SBA -Reimbursement for loans granted under the SBA’s PPP.

Excluding PPP loans, net loan growth as of September 30, 2022 was $217.10 million or 28.8% compared to September 30, 2021.1 The company continued to be “well capitalized” according to regulatory definitions, exceeding the 10% risk-based total capital ratio as of September 30, 2022.

Commenting on the company’s financial results, President & Chief Executive Officer Louise Walker said, “We remain focused on executing our strategic initiatives and are closely monitoring the risks associated with the continued impact of high inflation on both residential and commercial customers . With consistent earnings, a solid credit portfolio and excellent liquidity, we believe we are well positioned to help our clients navigate the challenging economic environment.”

About First Northern Bank

First Northern Bank is an independent community bank specializing in relationship banking. Headquartered in Solano County since 1910, the bank serves Solano, Yolo, Sacramento, Placer and Contra Costa Counties and the western slope of El Dorado County. Experts are available for small business, commercial, real estate and agribusiness lending and mortgage lending. The bank is a preferred lender of the SBA. Non-FDIC-insured investment and brokerage services are available at all branches including Dixon, Davis, West Sacramento, Fairfield, Vacaville, Winters, Woodland, Sacramento, Roseville, Auburn and Rancho Cordova. The bank also has a commercial credit office in Walnut Creek. Small business real estate mortgage and loan officers are available by appointment at any of the bank’s 11 branches. First Northern is managed by Bauer Financial for the period ended June 30, 2022 (www.veribanc.com) and (www.bauerfinancial.com). You can find the bank online at thatsmybank.comon Facebook and further LinkedIn.

Forward-Looking Statements

This press release and other public statements may contain certain “forward-looking statements” about First Northern Community Bancorp and its subsidiaries (the “Company”). These forward-looking statements are based on management’s current expectations, including but not limited to statements regarding the implementation of strategic initiatives and the Company’s competitive position, and are subject to certain risks, uncertainties and changes in circumstances. Actual results could differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. With the many challenges and uncertainties arising from the coronavirus pandemic, such as B. the magnitude and duration of the impact on public health, the US and California economies, financial markets and consumer and corporate customers and customers, including economic activity, employment levels and market liquidity, and on our business, results of operations and financial condition and the various actions being taken by governments, regulators and others in response to the challenges and uncertainties, our forward-looking statements are subject to the risk that conditions will differ materially from those we currently anticipate. More detailed information regarding these risk factors is contained in the Company’s most recent reports on Forms 10-K and 10-Q, as amended, which identify important risk factors that may exist cause actual results to differ materially from those contained in the forward-looking statements. The financial information contained in this press release should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s most recent Reports on Form 10-K and Form 10-Q and all Reports on Form 8-K. The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made. For more information about the company, please read the company’s filings with the SEC, available at www.sec.gov.

1 The presentation of net loan growth excluding loans under the SBA’s PPP is a non-GAAP financial measure. Management believes this non-GAAP financial measure is useful to investors given the near-term and non-recurring impact of loans granted under the SBA’s PPP on the company’s financial statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221026006134/en/

contacts

Louise A Walker
President & Chief Executive Officers
First Bancorp of the Northern Community
& First North Bank
PO Box 547
Dixon, California
678-3041

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Yieldstreet Review 2022: Invest in Alternative Assets https://mhwwb.org/yieldstreet-review-2022-invest-in-alternative-assets/ Sat, 22 Oct 2022 13:31:46 +0000 https://mhwwb.org/yieldstreet-review-2022-invest-in-alternative-assets/ invest your money is an important part of maintaining your financial health. And while you’re putting money into them stock market is a common way to grow your money and Build your wealthit’s certainly not the only way to invest. Once you feel secure in your finances, you might consider diving into alternative investments. Alternative […]]]>

invest your money is an important part of maintaining your financial health. And while you’re putting money into them stock market is a common way to grow your money and Build your wealthit’s certainly not the only way to invest.

Once you feel secure in your finances, you might consider diving into alternative investments. Alternative investments are asset classes that exclude stocks, bonds and cash. Collectibles such as fine wines, coins, stamps and vintage cars can be an alternative investment. Private debt and real estate are other common alternative assets to invest in.

The options can be overwhelming and you might not even know where to start. yield road is a platform that will help you get started by giving you access to many different types of alternative wealth transactions and all the necessary details to help you with your investments.

Under, Choose reviews how the site works and what you need to know to get started.

Yieldstreet review

This is how Yield Street works

yield road gives investors the opportunity to participate in crowdfunding for alternative investments on the platform. Crowdfunding is the process of raising small amounts of money from a large number of people. So instead of having one person invest $50,000, crowdfunding allows 50 people to invest at least $1,000 to achieve the same goal.

Yieldstreet also offers retail investors the opportunity to invest in private structured credit deals where an investor receives a guaranteed minimum return and is protected against the risk of a decline in earnings. However, these offerings are usually only available to institutional investors or hedge funds. The platform secures investments across deals that include commercial real estate, art and marine projects.

The minimum investment is usually around $10,000, which might not be the best for those who don’t have a lot of extra cash Invest beyond their IRA or brokerage account. As of October 2022, according to Yieldstreet, over $4 billion had been invested in their platform, with a 9.61% net annual return.

It’s also important to note that most listings on Yieldstreet are only available to accredited investors who have been identified by the Securities and Exchange Commission (SEC) as individuals with net worth greater than $1 million — excluding the value of your primary residence — or one year defines earnings in the past two years of at least $200,000 for individuals and over $300,000 for couples. The other option would be having specific certificates or credentials, such as B. Series 7, Series 65, and Series 82 licenses. So if you don’t meet these criteria, you probably won’t be able to participate in most opportunities on the platform.

However, in August 2020, Yieldstreet established the Prism Fund, which is available to non-accredited investors. The minimum investment amount for assets within the Prism Fund is $2,500, making it a bit more accessible.

You can Sign up to invest on Yieldstreet’s website via Apple ID, email or Google. After you choose your sign-up method, the site will ask you a few questions to determine if you are an accredited investor. If you meet the criteria, you can start customizing your Yieldstreet dashboard to suit your investing preferences and needs.

What forms of investment are offered?

Details of each investment Yielstreet offers can be found on its website. It currently offers investments in Real Estate Investment Trusts (REITs), art, supply chain financial investments and more. You will find details about the offering size, maximum and minimum acceptable investments, expected annual return on investment and term. The platform will also explain the risks of the investment and any favorable highlights.

Debt securities are another form of alternative investment offered by Yieldstreet. A promissory note is an obligation for a borrower to repay a sum of money with interest within a specified period of time, e.g. B. six months or a year – similar to a loan. In this case, individuals invest in the likelihood of earning a return when lending money to a borrower.

Those who invest money in the short-term or structured notes offered by the site receive a return on their investment and interest payments over the life of the loans – but it’s important to note that there is always a risk of default. Because of this, every investment offering on Yieldstreet is backed by underlying assets such as a court settlement or real estate, meaning the company has the funds to recover any defaulted loans to fund investments.

For those interested in investing in art, masterpieces is another platform where you can invest in pieces by famous artists. You can buy fractional pieces of art for as little as $20. Read more in our Masterpieces review.

fees

Yieldstreet has an annual management fee that averages between 0% and 2.5%. There may also be facilities with flat annual fees – such fees will be disclosed on the individual offering pages. Depending on the legal structure of the offering, investors may also be charged annual fund charges and specific information on these charges can also be found on the individual offering pages.

Who is this best for?

Yieldstreet is ideal for accredited investors looking to diversify their portfolios with alternative investments. Non-accredited investors will also be accommodated on the platform through the Prism Fund, but it is important to ensure you have exhausted other traditional investment accounts beforehand.

Since you may need to lock up your money for potentially long periods of time, you want to be relatively stable in your current financial situation. It is important that, before investing in alternative investments, you fully funded emergency fundcontribute at least enough to get those Employer Match for your 401(k)contribution to a Roth IRA and have an additional savings pad on the side.

It may be worth considering using a Robo Advisorhow wealth front or improvementto invest your money before you start buying alternative investments. That create platforms a diversified portfolio of ETFs for you based on your risk appetite and investment horizon.

Another important thing to keep in mind is to ensure that less than 10% of your portfolio consists of alternative investments such as those offered by Yieldstreet. In this way you keep your entire assets diversified and in balance.

bottom line

Editorial note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of Select’s editorial team and has not been reviewed, approved, or otherwise endorsed by any third party.

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Ohio Democratic Rep. Emilia Sykes outsells GOP rival Madison Gesiotto Gilbert in race for 13th congressional district https://mhwwb.org/ohio-democratic-rep-emilia-sykes-outsells-gop-rival-madison-gesiotto-gilbert-in-race-for-13th-congressional-district/ Mon, 17 Oct 2022 20:47:00 +0000 https://mhwwb.org/ohio-democratic-rep-emilia-sykes-outsells-gop-rival-madison-gesiotto-gilbert-in-race-for-13th-congressional-district/ WASHINGTON, DC — Akron Democratic Rep. Emilia Sykes raised more money for her congressional campaign in the 13th district in the third quarter of the year than her Republican rival, Northern Canton prosecutor Madison Gesiotto Gilbert, but ended September with less money in the bank . Her race is among the most competitive in the […]]]>

WASHINGTON, DC — Akron Democratic Rep. Emilia Sykes raised more money for her congressional campaign in the 13th district in the third quarter of the year than her Republican rival, Northern Canton prosecutor Madison Gesiotto Gilbert, but ended September with less money in the bank . Her race is among the most competitive in the state this year.

The reconfigured seat they plan to represent includes all of Summit County, northern Stark County and a portion of Portage County. Unlike most of Ohio’s congressional districts, it was not attracted to strongly favoring either political party.

Campaign finance reports filed with the Federal Elections Commission over the weekend showed Sykes raised $902,776 during the quarter. The majority of her $1,007,823 in spending went on television advertising. At the end of the quarter, it still owed nearly $50,000 on media production to a California provider and had $490,400 in the bank.

Her prominent donors included Akron’s Ann Amer Brenner ($3,000), Texas billionaire Robert Bass ($2,900), Chicago Newsweb founder Fred Eychaner ($2,900), Mallard Investments Inc. President Timothy F. Wuliger from Moreland Hills ($2,900) and former Forest City Enterprises executive James Ratner from Shaker Heights ($2,900). The Congressional Committee of Republican House Speaker Steny Hoyer gave her $2,000, Summit County Probate Judge Elinor M. Stormer gave her $1,000, and former US Rep. Betty Sutton of Copley Township, who is currently an Ohio Circuit Court of Appeals judge , $500.

Gesiotto Gilbert reported that he raised $710,587 for the quarter, spent $464,020 and ended the quarter with $672,099 in the bank. She still has a $250,000 campaign loan on her. She has spent more than $100,000 on digital consulting, more than $35,000 on media videography and more than $33,000 on digital advertising.

She received donations from Cleveland Browns owners James and Dee Haslam ($2,900) and H. Ross Perot, Jr., a Texas real estate developer ($2,900). Political action committees associated with Timken Co. and US Senator Rob Portman each donated $5,000 to her campaign. Former US Rep. Jim Renacci of Wadsworth, who defeated Sutton a decade earlier, gave Gesiotto Gilbert $1,000, and she got $250 from Shay Hawkins of Broadview Heights, a former Renacci aide whom she defeated in the GOP primary .

In the neighboring 7th congressional district — an open congressional seat pulled in favor of Republicans — President Donald Trump’s former White House adviser Max Miller reported raising $539,925 and spending $469,090 during the quarter have. The GOP nominee loaned his campaign $325,000 during the period and owed a total of $975,000 in debt. His campaign had $320,356 in the bank in the weeks leading up to the election.

He spent more than $200,000 on advertising and donated $25,000 to the National Republican Congressional Committee

The Democrat contender for the seat, Bay Village podcaster Matthew Diemer, raised $82,227 in the quarter, spent $81,061 and had $29,449 in the bench at the end of September. His campaign contributions included $2,500 from America Works PAC, which is affiliated with Democratic US Senator Sherrod Brown. Diemer’s campaign featured $31,600 in credit from the candidate.

The congressional district they wish to represent includes western and southern Cuyahoga counties, Medina and Wayne counties, and northern Holmes counties.

In the safe Democratic 11th congressional district, which includes the rest of Cuyahoga County, incumbent Democratic Rep. Shontel Brown of Warrensville Heights raised $192,069, spent $174,093 and had $413,847 left over the quarter. The Republican seeking the seat, former East Cleveland Mayor Eric Brewer, did not file a report with the Federal Election Commission.

In the Republican 14th congressional district demographic, which includes all of Lake, Geauga and Ashtabula counties and portions of Portage and Trumbull counties, incumbent GOP Rep. Dave Joyce of South Russell raised $455,892, spent $228,861 and enacted during the quarter the bank for more than 2.2 million US dollars. The Democrat seeking the seat, retired US Navy orderly Matthew Kilboy of Deerfield Township raised $36,109 in the quarter, spent $33,375 and had $16,191 in the bank. Kilboy has loaned his own campaign more than $13,000.

Bowling Green GOP Rep. Bob Latta raised $307,529 for re-election in the quarter, spent $125,995 and had nearly $1.2 million remaining. Democratic challenger Craig Swartz, an Upper Sandusky real estate agent, had raised $26,495 during the quarter, spent $25,223 and had $6,611 in the bank. It showed that the campaign owed Swartz himself $1,250.

The demographically Republican 5th District they contest includes Lorain, Mercer, Van Wert, Paulding, Putnam, Henry, Hancock, Seneca, Crawford and Huron counties and portions of Wood and Wyandot counties.

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JPM (JPMorgan Chase) Earnings Q3 2022 https://mhwwb.org/jpm-jpmorgan-chase-earnings-q3-2022/ Fri, 14 Oct 2022 09:58:32 +0000 https://mhwwb.org/jpm-jpmorgan-chase-earnings-q3-2022/ Jamie Dimon, CEO of JPMorgan Chase, says during the Senate Committee on Banking, Housing and Urban Affairs hearing entitled “Annual Oversight of the Nations Largest Banks” on Thursday, March 22. Tom Williams | CQ Roll Call, Inc. | Getty Images JPMorgan Chase results released on Friday beat analysts’ estimates as the largest US bank by […]]]>

Jamie Dimon, CEO of JPMorgan Chase, says during the Senate Committee on Banking, Housing and Urban Affairs hearing entitled “Annual Oversight of the Nations Largest Banks” on Thursday, March 22.

Tom Williams | CQ Roll Call, Inc. | Getty Images

JPMorgan Chase results released on Friday beat analysts’ estimates as the largest US bank by assets used rising interest rates to generate more interest income.

Here are the numbers:

  • Earnings: $3.12 per share, beating the estimate of $2.88 by analysts polled by Refinitiv.
  • Revenue: $33.49 billion, beating the estimate of $32.1 billion.

The bank said third-quarter earnings fell 17% year over year to $9.74 billion, or $3.12 a share, as the company increased reserves for bad loans by a net $808 million. dollar has spiked. Excluding a loss of 24 cents per share, which was linked to losses in investment securities, the bank posted earnings of $3.36 per share, far beating analysts’ estimate.

Revenue rose 10% to $33.49 billion in the quarter thanks to higher interest rates as the Federal Reserve fights inflation. Net interest income rose 34% to $17.6 billion for the period, driven by higher interest rates and a growing loan portfolio. That exceeded analysts’ expectations by more than $600 million.

Shares of the New York-based bank rose 2.6%.

Jamie Dimon, CEO of JPMorgan, noted that while consumers and businesses were financially resilient over the period, the economic picture darkened:

“We have significant headwinds immediately ahead – stubbornly high inflation leading to higher global interest rates, the uncertain impact of quantitative tightening, the war in Ukraine increasing all geopolitical risks, and the fragile state of oil supplies and prices. ‘ Dimon said in the statement. “While we hope for the best, we always remain vigilant and prepared for poor results.”

The first signs of these headwinds began to appear during the quarter. JPMorgan posted losses of $959 million in equities after deciding to sell government and mortgage bonds to reposition its portfolio.

Analysts were concerned about the impact a slowing economy would have on the bank. If the U.S. unemployment rate rises to 5 to 6 percent, the bank would likely need to increase its loan loss reserves by about $5 to $6 billion over a few quarters, Dimon said in a conference call on Friday.

JPMorgan, the largest US bank by assets, is being closely watched for clues as to how banks are navigating a confusing environment.

On the one hand, unemployment remains low, meaning consumers and businesses have little trouble paying off loans. Rising interest rates mean that banks’ lending business is becoming more profitable in their core business. And volatility in financial markets has been a boon for fixed income traders.

But investors have been dumping bank stocks of late, pushing JPMorgan and others to fresh 52-week lows this week on fears the Federal Reserve will inadvertently trigger a recession. Investment banking and mortgage lending revenues have fallen sharply and companies may report write-downs as financial assets fall.

In addition, banks have been expected to increase loan loss reserves as fears of a recession mount; According to analysts, the six largest US banks by assets are expected to collectively set aside $4.5 billion in reserves.

That jibes with the cautious tone of Dimon, who said this week he sees a recession hitting the US in the next six to nine months.

Last month, JPMorgan President Daniel Pinto warned that third-quarter investment banking earnings are headed for a fall of up to 50% on a slump in IPO activity and debt and stock issuance. To offset this, trading revenue was heading for a 5% year-over-year increase on strong activity in the fixed income space, he said.

This guidance proved correct; The bank said investment banking fees fell 47% in the quarter, while trading revenue rose 8%.

JPMorgan shares are down 31% this year through Thursday, worse than the 25% drop KBW banking index.

MorganStanley published results below expectations due to sharp declines in investment banking and wealth management revenues. Wells Fargo and Citigroup also released mixed results Friday. Bank of America is scheduled to report on Monday, followed by Goldman Sachs on Tuesday.

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The 401(k) Industry Introduces Old Retirement Account Rollover Plans https://mhwwb.org/the-401k-industry-introduces-old-retirement-account-rollover-plans/ Thu, 06 Oct 2022 19:22:26 +0000 https://mhwwb.org/the-401k-industry-introduces-old-retirement-account-rollover-plans/ JGI | Jamie Grill | mix pictures | Getty 401(k) plans include a whopping $7.7 trillion in retirement savings. But withdrawals from small accounts pull billions out of the system each year and can hurt investors’ chances of a safe retirement, research shows. A trio of the industry’s biggest 401(k) administrators – Fidelity Investments, Vanguard […]]]>

JGI | Jamie Grill | mix pictures | Getty

401(k) plans include a whopping $7.7 trillion in retirement savings. But withdrawals from small accounts pull billions out of the system each year and can hurt investors’ chances of a safe retirement, research shows.

A trio of the industry’s biggest 401(k) administrators – Fidelity Investments, Vanguard Group and Alight Solutions – have come together to change that.

Along with Retirement Clearinghouse, they’ve formed a consortium – Portability Services Network, LLC – to automatically reconnect workers to old 401(k) accounts that they may have lost or left behind after leaving work.

The partnership, which the companies describe as a first of its kind for the industry, aims to fix what they see as structural flaws in the current US pension system

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If employees leave 401(k) accounts with less than $1,000, current rules allow employers to withdraw the funds and write a check. There may be taxes and penalties associated with this payout if the funds are not transferred to a new qualifying retirement plan within a short window of time.

Employers generally cannot cash out accounts of $1,000 or more. But they can move those with $1,000 to $5,000 from a 401(k) to an individual retirement account, where — unless the employee takes action — monies are often invested in cash on their behalf by default, a strategy unrelated to construction A nest egg is compatible for decades, experts said.

Payouts initiated by employees and employers are a “serious problem” that resulted in $92.4 billion being drained from 401(k) plans in 2015, according to the latest findings Data from the Employee Benefit Research Institute.

Automatically reconnecting workers with accounts with less than $5,000 could save $1.5 trillion remaining in the pension system over 40 years, according to the EBRI.

“Billions of dollars are left behind or simply paid out, and [workers] pay taxes on it and spend it, which isn’t good for their long-term retirement savings,” said Philip Chao, a board-certified financial planner and founder of Experiential Wealth in Cabin John, Maryland.

How the new consortium will work

If the participant moves outside the universe of these three companies, they haven’t really improved the result.

Philip Chao

Founder of Experiential Wealth

From today’s perspective, there’s a flaw: The only way companies can facilitate the transaction is when workers move to or from an employer with a retirement plan managed by Fidelity, Vanguard, or Alight.

“If the participant moves outside of the universe of these three companies, they haven’t really improved the outcome,” Chao said.

Corporations account for about 44 million people, or about 40% of all investors in workplace pension plans. They work in tandem with 48,000 employer-sponsored retirement plans.

Their goal is to expand the list of companies in the consortium to increase the number of investors who can benefit.

Contain “leaks” as auto-enrollment after 401(k) increases

Martin Leigh | Image source | Getty Images

So-called “leaks” from the pension system due to payouts have become a more pervasive problem as workers change jobs more frequently and more employers automatically enroll workers in their company’s 401(k), Chao said. The latter dynamic increases the number of savers overall, but can also create many small accounts that their owners are unaware of.

The Retirement Clearinghouse serves as an engine that facilitates transfers between administrators and will manage day-to-day operations, Gray said. The companies charge workers a one-time fee for the service: 5% of the account balance, up to a maximum of $30. Accounts with less than $50 will not be charged.

The fee is expected to decrease over time, Gray said. The service is intended as a support scheme for savers in retirement and the consortium is operating at breakeven costs, he added.

Administrators can also benefit from keeping more money in the system. Many companies generate income based on a percentage of assets in a retirement plan; If more money stayed in the system, more revenue would likely follow.

But the industry has shifted from an asset-based charging model to one that charges based on the total number of investors in a plan, meaning the new service isn’t necessarily a “financial win” for administrators, Gray said.

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