Business Banking – Game Towne http://gametowne.com/ Tue, 22 Nov 2022 14:40:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://gametowne.com/wp-content/uploads/2021/06/icon-6-150x150.png Business Banking – Game Towne http://gametowne.com/ 32 32 CIBC Innovation Banking Provides $25 Million in Debt Financing to Podimetrics, Inc. | Company https://gametowne.com/cibc-innovation-banking-provides-25-million-in-debt-financing-to-podimetrics-inc-company/ Tue, 22 Nov 2022 14:02:25 +0000 https://gametowne.com/cibc-innovation-banking-provides-25-million-in-debt-financing-to-podimetrics-inc-company/ SOMERVILLE, Mass. & MENLO PARK, Calif.–(BUSINESS WIRE)–Nov. 22, 2022– CIBC Innovation Banking is pleased to announce $25 million in debt financing for Podimetrics Inc. (“Podimetrics”), an integrated clinical care services company that helps prevent amputations in patients with complex diabetes. Podimetrics plans to use the growth capital to expand its business operations. Founded in 2011, […]]]>

SOMERVILLE, Mass. & MENLO PARK, Calif.–(BUSINESS WIRE)–Nov. 22, 2022–

CIBC Innovation Banking is pleased to announce $25 million in debt financing for Podimetrics Inc. (“Podimetrics”), an integrated clinical care services company that helps prevent amputations in patients with complex diabetes. Podimetrics plans to use the growth capital to expand its business operations.

Founded in 2011, Podimetrics created the SmartMat™, an easy-to-use home mat that detects temperature changes in the patient’s feet and alerts Podimetrics’ clinical and patient support team to potential health issues. The company aims to drive wider adoption of the SmartMat™ to help improve care outcomes for at-risk patients with diabetic foot ulcers.

“We look forward to working with CIBC Innovation Banking as we continue to bring our technology to diabetes patients across the United States,” said Matthew Scalo, Chief Financial Officer, Podimetrics.

“CIBC Innovation Banking is proud to support Podimetrics as it continues to grow and help patients with diabetes,” said Jeff Chapman, Head, North America, Life Sciences and Healthcare, CIBC Innovation Banking. “We are thrilled to work with a company that is dedicated to providing preventative care and helping to reduce amputations in patients with diabetes.”

About CIBC Innovation Banking

CIBC Innovation Banking provides strategic advice, cash management and financing to innovative companies in North America, the UK and selected European countries at every stage of their business cycle, from start-up to IPO and beyond. With offices in Atlanta, Austin, Boston, Chicago, Denver, Durham, London, Menlo Park, Montreal, New York, Reston, Seattle, Toronto and Vancouver, the team has extensive experience and a strong collaborative approach that spans to all of CIBC’s commercial banking services. and capital markets firms in the United States, Canada, United Kingdom and certain European markets.

About Podimetry

Podimetrics is the creator of the FDA-approved SmartMat™ and integrated clinical care services that can help save the limbs and lives of patients with complex diabetes. Through partnerships with regional and national health plans and at-risk providers, such as the Veterans Health Administration, Podimetrics has helped prevent amputations associated with complex diabetes. By combining cutting-edge technology with the best clinical care services, Podimetrics achieves high patient engagement rates and enables clinicians to save limbs, lives and money, while keeping populations vulnerable. healthy at home. For more information, visit podimetrics.com or follow us on LinkedIn and Twitter.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20221115006320/en/

Katarina Milicevic, katarina.milicevic@cibc.com, 416-784-6108

KEYWORD: CALIFORNIA MASSACHUSETTS UNITED STATES NORTH AMERICA

SECTOR KEYWORD: PROFESSIONAL SERVICES HEALTH MEDICAL DEVICES DIABETES FINANCE VENTURE CAPITAL BANKING

SOURCE: CIBC Innovation Banking

Copyright BusinessWire 2022.

PUBLISHED: 11/22/2022 09:00/DISC: 11/22/2022 09:02

http://www.businesswire.com/news/home/20221115006320/en

Copyright BusinessWire 2022.

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Short-term stake in Limestone Bancorp, Inc. (NASDAQ:LMST) drops 65.4% https://gametowne.com/short-term-stake-in-limestone-bancorp-inc-nasdaqlmst-drops-65-4/ Sat, 12 Nov 2022 23:38:31 +0000 https://gametowne.com/short-term-stake-in-limestone-bancorp-inc-nasdaqlmst-drops-65-4/ Limestone Bancorp, Inc. (NASDAQ:LMST – Get Rating) was the target of a significant drop in short interest in October. As of October 31, there was selling interest totaling 3,600 shares, down 65.4% from the total of 10,400 shares as of October 15. Based on an average daily trading volume of 13,200 shares, the short-term interest […]]]>

Limestone Bancorp, Inc. (NASDAQ:LMST – Get Rating) was the target of a significant drop in short interest in October. As of October 31, there was selling interest totaling 3,600 shares, down 65.4% from the total of 10,400 shares as of October 15. Based on an average daily trading volume of 13,200 shares, the short-term interest rate ratio is currently 0.3 day. Approximately 0.1% of the company’s shares are sold short.

Limestone Bancorp is trading down 0.6%

LMST stock was down $0.15 midday Friday, hitting $25.10. The company’s stock had a trading volume of 6,841 shares, compared to an average volume of 9,479. The company’s 50-day simple moving average is $21.12 and its 200-day simple moving average is of $20.19. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt ratio of 0.90. Limestone Bancorp has a 52 week minimum of $18.25 and a 52 week maximum of $26.00. The stock has a market capitalization of $166.64 million, a PE ratio of 11.43 and a beta of 0.79.

Limestone Bancorp Inc (NASDAQ:LMST – Get Rating) last released its quarterly results on Wednesday, October 19. The company reported earnings per share of $0.76 for the quarter, beating consensus analyst estimates of $0.55 by $0.21. Limestone Bancorp had a return on equity of 13.13% and a net margin of 27.35%. The company posted revenue of $15.14 million for the quarter, versus a consensus estimate of $14.20 million. As a group, sell-side analysts expect Limestone Bancorp to post EPS of 2.39 for the current year.

Limestone Bancorp announces dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 5. Shareholders of record on Wednesday, November 16 will receive a dividend of $0.05. The ex-dividend date is Tuesday, November 15. This represents a dividend of $0.20 on an annualized basis and a dividend yield of 0.80%. Limestone Bancorp’s dividend payout ratio (DPR) is currently 9.05%.

Institutional entries and exits

Hedge funds and other institutional investors have recently been buying and selling shares of the company. Quadrant Capital Group LLC acquired a new stake in Limestone Bancorp in the third quarter worth approximately $49,000. Dimensional Fund Advisors LP increased its holdings of Limestone Bancorp shares by 1.9% in Q3. Dimensional Fund Advisors LP now owns 33,209 shares of the company valued at $652,000 after purchasing an additional 634 shares during the period. UBS Group AG increased its position in shares of Limestone Bancorp by 14.1% in the third quarter. UBS Group AG now owns 4,564 shares of the company valued at $89,000 after buying an additional 564 shares last quarter. The Manufacturers Life Insurance Company increased its stake in Limestone Bancorp by 10.2% during the third quarter. The Manufacturers Life Insurance Company now owns 169,928 shares of the company worth $3,334,000 after purchasing an additional 15,735 shares during the period. Finally, State Street Corp increased its stake in Limestone Bancorp by 27.1% during the second quarter. State Street Corp now owns 16,112 shares of the company worth $297,000 after acquiring 3,436 additional shares in the last quarter. Institutional investors hold 42.99% of the company’s shares.

About Limestone Bancorp

(Get a rating)

Limestone Bancorp, Inc operates as a bank holding company for Limestone Bank, Inc which provides a range of personal and professional banking products and services. The Company’s deposit products include savings, interest control and money market accounts, as well as fixed rate certificates with variable maturities.

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PCF lender to pull out of UK market after failed bailout https://gametowne.com/pcf-lender-to-pull-out-of-uk-market-after-failed-bailout/ Wed, 09 Nov 2022 09:23:00 +0000 https://gametowne.com/pcf-lender-to-pull-out-of-uk-market-after-failed-bailout/ PCF will not start lending again Could sell all or part of its loan portfolio The company will explore strategic transactions Nov 9 (Reuters) – PCF Group (PCF.L) is pulling out of the UK banking market and plans to delist its shares on AIM, after failing to raise capital or secure strategic options to strengthen […]]]>
  • PCF will not start lending again
  • Could sell all or part of its loan portfolio
  • The company will explore strategic transactions

Nov 9 (Reuters) – PCF Group (PCF.L) is pulling out of the UK banking market and plans to delist its shares on AIM, after failing to raise capital or secure strategic options to strengthen its retail and business lending business, the lender says.

Shares of PCF fell around 62% to 0.4 pence in early trade after the news on Wednesday, six weeks after Castle Trust Capital withdrew plans to bid on PCF.

PCF’s decision to end its lending business underscores the challenges facing smaller banks in Britain, where the costs of regulation and doing business have risen and competition from dominant competitors including Lloyds Banking Group (LLOY.L), NatWest (NWG.L) and HSBC (HSBA.L), intensified.

“This has been a very difficult strategic decision for the board to make given the implications for the business, colleagues, customers, intermediaries and shareholders,” said PCF Bank chief executive Garry Stran. , in a press release.

PCF Bank, which was established in 1994 and offers savings and finance products to around 20,000 businesses and individuals, accelerated its review in October after a drop in half-year profit at the start of the year.

He said he would manage his loan and savings portfolio positions on the decline, without specifying how long this might take, and would seek to reduce his cost base, possibly by selling all or part of his loan portfolio. .

To cancel the AIM listing, it must consult with investors.

PCF, which has a market value of just under 4 million pounds ($4.6 million), said it would continue to explore strategic deals with interested third parties and has retained support. of Somers Limited, its largest shareholder with a 73.24% stake.

Reporting by Sinchita Mitra in Bengaluru; edited by Uttaresh.V and Sinead Cruise and Barbara Lewis

Our standards: The Thomson Reuters Trust Principles.

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Earnings from Australian lender Westpac fall in charge, raise cost target https://gametowne.com/earnings-from-australian-lender-westpac-fall-in-charge-raise-cost-target/ Sun, 06 Nov 2022 21:43:00 +0000 https://gametowne.com/earnings-from-australian-lender-westpac-fall-in-charge-raise-cost-target/ Nov 7 (Reuters) – Australia’s third-largest lender Westpac Banking Corp (WBC.AX) reported a drop in annual profit on Monday, hurt by competition in its home lending business and a charge related to the sale of its unit of life insurance. Westpac also revised its target for incurred costs to up to A$8.6 billion by financial […]]]>

Nov 7 (Reuters) – Australia’s third-largest lender Westpac Banking Corp (WBC.AX) reported a drop in annual profit on Monday, hurt by competition in its home lending business and a charge related to the sale of its unit of life insurance.

Westpac also revised its target for incurred costs to up to A$8.6 billion by financial year 2024, citing wage increases due to a tight labor market and continued regulatory costs.

The new cost target marks a departure from its target of A$8 billion by FY24 set in May 2021, part of a cost-cutting exercise that analysts had described as ” ambitious”.

However, the bank recorded a 19% reduction in its annual operating expenses, benefiting from lower asset write-downs and lower staff costs.

The bank’s full-year profit was hit by a A$1.3 billion charge in the second half, mainly due to a loss on the sale of its life insurance business. Read more

While its second-half lending margins recovered slightly from the first half, full-year margins were still down 13 basis points from a year ago. In contrast, rival Australia and New Zealand Banking (ANZ.AX) saw only a 1 basis point contraction in margins for the year as a whole. Read more

Since May, Australian banks have followed the lead of the Reserve Bank of Australia in passing on rate hikes to their customers, boosting credit spreads in the second half of the year.

Westpac’s cash profit fell 1.4% to A$5.28 billion for the year ended September, slightly beating a Morgan Stanley estimate of A$5.23 billion.

Westpac declared a final dividend of 64 Australian cents per share, up from 60 Australian cents last year.

($1 = 1.5610 Australian dollars)

Reporting by Harshita Swaminathan and Savyata Mishra in Bengaluru; edited by David Evans and Deepa Babington

Our standards: The Thomson Reuters Trust Principles.

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ALKAMI TECHNOLOGY, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://gametowne.com/alkami-technology-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Fri, 04 Nov 2022 10:04:17 +0000 https://gametowne.com/alkami-technology-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and in our other filings with the Securities and Exchange Commission ("SEC"), including the audited […]]]>
The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our condensed consolidated
financial statements and related notes and other financial information included
elsewhere in this Quarterly Report on Form 10-Q and in our other filings with
the Securities and Exchange Commission ("SEC"), including the audited
consolidated financial statements and the accompanying notes for the fiscal year
ended December 31, 2021, which are included in our Annual Report on Form 10-K
for the year ended December 31, 2021, filed with the SEC on February 25, 2022.

Unless the context otherwise requires, all references in this report to the “Company”, “Alkami,” “we”, “us” and “our” means Alkami Technology, Inc.a
Delaware company, and its consolidated subsidiary taken as a whole.

Caution Regarding Forward-Looking Statements


Any statements made in this Quarterly Report on Form 10-Q that are not
statements of historical fact, including statements about our beliefs and
expectations, are forward-looking statements and should be evaluated as such.
Forward-looking statements include information concerning possible or assumed
future results of operations, including descriptions of our business plan and
strategies. These statements often include words such as "anticipate," "expect,"
"suggests," "plan," "believe," "intend," "estimates," "targets," "projects,"
"should," "could," "would," "may," "will," "forecast" and other similar
expressions. We base these forward-looking statements on our current
expectations, plans and assumptions that we have made in light of our experience
in the industry, as well as our perceptions of historical trends, current
conditions, expected future developments and other factors we believe are
appropriate under the circumstances at such time. Forward-looking statements are
not guarantees of future performance or results and are subject to and involve
risks, uncertainties and assumptions. Although we believe that these
forward-looking statements are based on reasonable assumptions at the time they
are made, you should be aware that many factors could affect our actual results
or results of operations and could cause actual results to differ materially
from those expressed in the forward-looking statements. The following important
factors, along with the factors discussed in "Risk Factors" in the Annual Report
on Form 10-K, may materially affect such forward-looking statements:

•our ability to manage our rapid growth;
•our ability to attract new clients and retain and broaden our existing clients'
use of our solutions;
•our ability to maintain, protect and enhance our brand;
•our ability to predict the long-term rate of client subscription renewals or
adoption of our solutions;
•the unpredictable and time-consuming nature of our sales cycles;
•our integration with and reliance on third-party software, content and
services;
•defects, errors or performance problems associated with our solutions;
•retaining our management team and key employees and recruiting and retaining
new employees;
•managing the increased complexity of our solutions and a higher volume of
implementations;
•providing client support;
•mergers and acquisitions;
•intense competition in the markets we serve;
•our focus and reliance on the financial services industry as the source of our
revenue;
•evolving technological requirements and changes and additions to our solution
offerings;
•regulations applicable to us, our clients and our solutions;
•security breaches or other compromises of our security measures or those of
third parties upon which we rely, including in connection with cybersecurity;
•increased privacy concerns and our processing and use of the personal
information of end users;
•protecting our intellectual property rights and defending ourselves against
claims that we are misappropriating the intellectual property rights of others;
•open-source software in our solutions;
•litigation or threats of litigation;
•the fluctuation of our quarterly and annual results of operations relative to
our expectations and guidance;
•the way we recognize revenue, which has the effect of delaying changes in the
subscriptions for our solutions from being reflected in our operating results;
•changes in financial accounting standards or practices;
•our limited operating history, our history of operating losses and our ability
to use our net operating loss ("NOL") carryforwards;
•our ability to raise sufficient capital and the resulting dilution and the
terms of our credit agreement;
•stock price volatility and no intention to pay dividends;
•maintaining proper and effective internal controls;
•expenses and administrative burdens as a public company; and
•anti-takeover provisions in our charter documents and Delaware law.

Given these risks and uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.


                                      17
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Insight


Alkami is a cloud-based digital banking solutions provider. We inspire and
empower community, regional and super-regional financial institutions ("FIs") to
compete with large, technologically advanced and well-resourced banks in the
United States. Our solution, the Alkami Platform, allows FIs to onboard and
engage new users, accelerate revenues and meaningfully improve operational
efficiency, all with the support of a proprietary, true cloud-based,
multi-tenant architecture. We cultivate deep relationships with our clients
through long-term, subscription-based contractual arrangements, aligning our
growth with our clients' success and generating an attractive unit economic
model.

Alkami was founded to help level the playing field for FIs. Since then, our
vision has been to create a platform that combines premium technology and
fintech solutions in one integrated ecosystem, delivered as a
software-as-a-service ("SaaS") solution and providing our clients' customers
with a single point of access to all things digital. We have invested
significant resources to build a technology stack that prioritized innovation
velocity and speed-to-market given the importance of product depth and
functionality in winning and retaining clients. In fiscal 2020, we acquired ACH
Alert, LLC ("ACH Alert") to pursue adjacent product opportunities, such as fraud
prevention and to expand our addressable market. In September 2021, we acquired
MK Decisioning Systems, LLC ("MK"), a technology platform for digital account
opening, credit card and loan origination solutions. In April 2022, we acquired
Segmint Inc. ("Segmint"), a leading cloud-based financial data analytics and
transaction data cleansing provider.

Our domain expertise in retail and business banking has enabled us to develop a
suite of products tailored to address key challenges faced by FIs. Due to our
architecture, adding products through our single code base is fast, simple and
cost-effective. The key differentiators of the Alkami Platform include:

• User Experience: Personalized and seamless digital experience across user interaction points including mobile, chat and SMS, building lasting connections between FIs and their customers.


•Integrations: Scalability and extensibility driven by more than 270 real-time
integrations to back office systems and third-party fintech solutions as of
September 30, 2022, including core systems, payment cards, mortgages, bill pay,
electronic documents, money movement, personal financial management and account
opening.

• Deep Data Capabilities: Data synced and stored from back-office systems and third-party fintech solutions and synthesized into meaningful insights, targeted content, and other monetization areas.


The Alkami Platform offers an end-to-end set of software products. Our typical
relationship with an FI begins with a set of core functional components, which
can extend over time to include a rounded suite of products across account
opening, card experience, client service, extensibility, financial wellness,
security and fraud protection, marketing and analytics and money movement.

We primarily go to market through an internal sales force. Given the long-term nature of our contracts, a typical sales cycle can range from approximately three to 12 months, with subsequent implementation time typically ranging from six to 12 months depending on the depth of integration.


We derive our Alkami Platform revenues almost entirely from multi-year contracts
that are based on an average contract life of approximately 70 months as of
September 30, 2022. We predominantly employ a per-registered-user pricing model,
with incremental fees above certain contractual minimum commitments for each
licensed solution. Our pricing is tiered, with per-registered-user discounts
applied as clients achieve higher levels of customer penetration, incentivizing
our clients to internally market and promote digital engagement.

To support our growth and capitalize on our market opportunity, we have
increased our operating expenses across all aspects of our business. In research
and development, we continue to focus on innovation and bringing novel
capabilities to our platform, extending our product depth. Similarly, we
continue to expand our sales and marketing organization focusing on new client
wins, cross-selling opportunities and client renewals.

For the three months ended September 30, 2022 and 2021, our total revenues were
$53.4 million and $39.8 million, respectively, representing a 34.3% increase
period-over-period. For the nine months ended September 30, 2022 and 2021, our
total revenues were $148.7 million and $109.7 million, respectively,
representing a 35.6% increase period-over-period. SaaS subscription revenues, as
further described below, represented 94.9% and 95.0% of total revenues for the
three and nine months ended September 30, 2022, respectively and 94.3% and 94.4%
of total revenues for the three and nine months ended September 30, 2021,
respectively. We incurred net losses of $20.0 million and $53.7 million for the
three and nine months ended September 30, 2022, respectively, and net losses of
$11.2 million and $33.5 million for the three and nine months ended September
30, 2021, respectively, largely on the basis of significant continued investment
in sales, marketing, product development and post-sales client activities.

RECENT DEVELOPMENTS


Merger with Segmint. On April 25, 2022, the Company consummated its previously
announced merger with Segmint, pursuant to the Agreement and Plan of Merger (the
"Merger Agreement"), dated March 25, 2022, with Segmint surviving as a wholly
owned subsidiary of the Company. Segmint operates a marketing analytics and
messaging delivery platform with patented software that enables financial
institutions and merchants to understand and leverage data, interact with
customers and measure results. The aggregate consideration paid in exchange for
all of the outstanding equity interests of Segmint was approximately $135.0
million. A portion of the consideration was placed into escrow to secure certain
post-closing indemnification obligations in the Merger Agreement.

                                      18
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Factors Affecting Our Results of Operations


Growing our FI Client Base. A key part of our strategy is to grow our FI client
base. As of September 30, 2022, we served 190 FIs through the Alkami Platform
and over 330 clients through the ACH Alert, MK and Segmint products,
representing 70.1% annual client growth since September 30, 2021. Each of our
digital banking client wins is a competitive takeaway, and as such, our
historical ability to grow our client base has been a function of product depth,
technological excellence and a sales and marketing function able to match our
solutions with the strategic objectives of our clients. Our future success will
significantly depend on our ability to continue to grow our FI client base
through competitive wins.

Deepening Client Customer Penetration. We primarily generate revenues through a
per-registered-user pricing model. Once we onboard a client, our ability to help
drive incremental client customer digital adoption translates to additional
revenues with very limited additional spend. Our FI clients are incentivized to
market and encourage digital account sign-up based on identifiable improvement
in customer engagement as well as discounts received based on certain levels of
customer penetration. We expect to continue to support digital adoption by
client customers through continued investments in new products and platform
enhancements. Our future success will depend on our ability to continue to
deepen client customer penetration.

Expanding our Product Suite. Product depth is a key determinant in winning new
clients. In a replacement market, we win based on our ability to bring a product
suite to market that is superior to the incumbent, as well as to our broader
competition. Of equal importance is the ability to cohesively deliver a deep
product suite with as little friction as possible to the client customer. The
depth of our product suite is a function of technology and platform
partnerships. Our platform model with more than 270 integrations as of September
30, 2022 enables us to deliver thousands of configurations aligned with the
digital platform strategies adopted by our clients. We expect our future success
in winning new clients to be partially driven by our ability to continue to
develop and deliver new, innovative products to FI clients in a timely manner.
Furthermore, expanding our product suite expands our RPU potential. For
additional information regarding RPU, see "Key Business Metrics."

Client Renewals. Our model and the stability of our revenue base is, in part,
driven by our ability to renew our clients. In addition to extending existing
relationships, renewals provide an opportunity to grow minimum contract value,
as over the course of a contract term our clients often grow or their needs
evolve. Client renewals are also an important lever in driving our long-term
gross margin targets. We had six and 11 client renewals in the three and nine
months ended September 30, 2022, respectively. We expect client renewals to
continue to play a key role in our future success.

Continued Leadership in Innovation. Our ability to maintain a differentiated
platform and offering is dependent upon our pace of innovation. In particular,
our single code base, built on a multi-tenant infrastructure and combined with
continuous software delivery enables us to bring new, innovative products to
market quickly and positions us with what we believe is market-leading breadth
in terms of product offerings and feature set. We remain committed to investing
in our platform, notably through our research and development spend, which was
34.1% and 32.9% of our revenues for the three and nine months ended September
30, 2022, respectively. Our future success will depend on our continued
leadership in innovation.

COVID-19 Impact. The continued global impact of COVID-19 has resulted in various
measures to combat the spread of the virus. With the development of variants,
the status of ongoing measures varies widely. We transitioned our employee base
to work-from-home in March 2020, creating challenges in executing sales and
implementations that have resurfaced due to the renewal of certain actions and
restrictions in response to the ongoing COVID-19 pandemic and which may be
exacerbated if such actions or restrictions are prolonged. We continue to face
significant uncertainty concerning the duration of the COVID-19 pandemic as well
as the severity of any future infection surges.

Components of operating results

Revenue

Our digital banking client relationships are primarily based on multi-year
contracts that have an average contract life of 70 months as of September 30,
2022. We derive the majority of our revenues from SaaS subscription services
charged for the use of our digital banking solution. For each client, we invoice
monthly a contractual minimum fee for each licensed solution. In addition, we
invoice monthly an additional subscription fee for the number of registered
users using each solution and the number of bill-pay and certain other
transactions those registered users conduct through our digital banking platform
in excess of their contractual minimum commitments. Our pricing is tiered, with
per-registered-user discounts applied as clients achieve higher levels of
customer penetration, incentivizing our clients to internally market our
products and promote digital engagement. Variable consideration earned for
subscription fees in excess of contractual minimums is recognized as revenues in
the month of actual usage. SaaS subscription services also include annual and
monthly charges for maintenance and support services which are recognized on a
straight-line basis over the contract term.

We receive implementation and other upfront fees for the implementation,
configuration and integration of our digital banking platform. We typically
invoice these services as a fixed price per contract. These fees are not
distinct from the underlying licensed SaaS subscription services. As a result,
we recognize the resulting revenues on a straight-line basis over the client's
initial agreement term for our licensed SaaS solutions, commencing upon launch.

Occasionally, our clients request custom development and other professional
services, which we provide. These are generally one-time requests and involve
unique, non-standard features, functions or integrations that are intended to
enhance or modify their licensed SaaS solutions. We recognize revenues at the
point in time the services are transferred to the client.

                                      19
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The following disaggregates our revenue for the three and nine months ended
September 30, 2022 and 2021 by main source:

                                                  Three months ended September 30,               Nine months ended September 30,
                                                     2022                    2021                   2022                    2021
(In thousands)
SaaS subscription services                    $         50,697          $    37,486          $        141,287          $   103,582
Implementation services                                  1,922                1,591                     5,503                4,604
Other services                                             793                  684                     1,942                1,538
Total revenues                                $         53,412          $    39,761          $        148,732          $   109,724


See Note 5 of the Notes to our unaudited condensed consolidated financial statements for further details.

Revenue Cost and Gross Margin


Cost of revenues is comprised primarily of salaries and other personnel-related
costs, including employee benefits, bonuses, stock-based compensation, travel
and related costs for employees supporting our SaaS subscription, implementation
and other services. This includes the costs of our implementation, client
support and client success teams, development personnel responsible for
maintaining and releasing updates to our platform, as well as third-party
cloud-based hosting services. Cost of revenues also includes the direct costs of
bill-pay services and other third-party intellectual property included in our
solutions, the amortization of acquired technology, the amortization of
capitalized internal use software, and depreciation.

We capitalize certain personnel costs directly related to the implementation of
our solutions to the extent those costs are recoverable from future revenues. We
amortize the costs for an implementation once revenue recognition commences. The
amortization period is typically five to seven years which represents the
expected period of client benefit. Other costs not directly recoverable from
future revenues are expensed in the period incurred.

We intend to continue to increase our investments in our implementation, client
support and client success teams and technology infrastructure to serve our
clients and support our growth. We expect cost of revenues to continue to grow
in absolute dollars as we grow our business, but to vary as a percentage of
revenues from period to period as a function of the utilization of
implementation and support personnel and the extent to which we recognize fees
from bill-pay services and other third-party functionality integrated into our
solutions. Our gross margin for the three and nine months ended September 30,
2022 was 51.6% and 53.6%, respectively, and 56.3% and 55.3% for the three and
nine months ended September 30, 2021, respectively.

The major components of cost of revenues represented the following percentages
of revenues for the three months ended September 30, 2022: third-party hosting
services (7.7%), the direct costs of bill-pay and other third-party intellectual
property included in our solutions (17.7%), our implementation team (10.8%), our
client success team (5.4%), our development team responsible for maintaining and
releasing updates to our platform (4.2%) and amortization of intangible assets
(2.5%). The major components of cost of revenues represented the following
percentages of revenues for the three months ended September 30, 2021:
third-party hosting services (7.9%), the direct costs of bill-pay and other
third-party intellectual property included in our solutions (17.0%), our
implementation team (9.3%), our client success team (5.4%), our development team
responsible for maintaining and releasing updates to our platform (3.8%) and
amortization of intangible assets (0.3%).

The major components of cost of revenues represented the following percentages
of revenues for the nine months ended September 30, 2022: third-party hosting
services (7.7%), the direct costs of bill-pay and other third-party intellectual
property included in our solutions (16.6%), our implementation team (10.7%), our
client success team (5.5%), our development team responsible for maintaining and
releasing updates to our platform (4.2%) and amortization of intangibles (1.7%).
The major components of cost of revenues represented the following percentages
of revenues for the nine months ended September 30, 2021: third-party hosting
services (8.8%), the direct costs of bill-pay and other third-party intellectual
property included in our solutions (16.2%), our implementation team (9.6%), our
client success team (5.7%), our development team responsible for maintaining and
releasing updates to our platform (4.1%) and amortization of intangible assets
(0.3%).

Operating Expenses

Research and Development. Research and development costs consist primarily of
personnel-related costs for our engineering, information technology and product
employees, including salaries, bonuses, other incentive-related compensation,
employee benefits and stock-based compensation. In addition, we also include
third-party contractor expenses, software development and testing tools,
allocated corporate expenses, and other expenses related to developing new
solutions and upgrading and enhancing existing solutions. We expect research and
development costs to increase as we expand our platform with new features and
functionality as well as enhance the existing Alkami Platform.

Sales and Marketing. Sales and marketing expenses consist primarily of
personnel-related costs of our sales, marketing and a portion of account
management employees, including salaries, bonuses, commissions, other
incentive-related compensation, employee benefits and stock-based compensation.
Sales and marketing expenses also include travel and related costs, outside
consulting fees and marketing programs, including lead generation, costs of our
annual client conference, advertising, trade shows and other event expenses. We
expect sales and marketing expenses will continue to increase as we expand our
direct sales teams to pursue our market opportunity.

General and Administrative. General and administrative expenses consist
primarily of personnel-related costs for our executive, finance, legal, human
resources, information technology, security and compliance and other
administrative employees, including salaries, bonuses, commissions, other
incentive-related compensation, employee benefits and stock-based compensation.
General and administrative expenses also
                                      20
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include accounting, auditing and legal professional services fees, travel and
other unallocated corporate-related expenses such as the cost of our facilities,
employee relations, corporate telecommunication and software. We expect that
general and administrative expenses will continue to increase as we scale our
business and as we incur costs associated with being a publicly traded company,
including legal, audit, business insurance and consulting fees.

Acquisition-Related Expenses, net. Acquisition-related expenses, net, include
the accrual of deferred compensation due to the former owner of ACH Alert, in
addition to acquisition-related expenses associated with the acquisitions of MK
and Segmint, primarily related to legal, consulting, and professional fees. In
addition, these expenses are inclusive of any (gain) loss on revaluation of
contingent consideration.

Amortization of acquired intangible assets. Amortization of acquired intangibles represents the amortization of intangible assets recognized in connection with our business acquisitions, which are amortized on a straight-line basis over the estimated useful lives of the related assets.

Non-operating income (expenses)


Non-operating income (expense) consists primarily of interest income from our
cash balances, interest expense from borrowings under our revolving line of
credit, amortization of deferred debt costs, unrealized losses on marketable
securities, and changes in fair value of warrants, and tranche rights.

Provision (benefit) for income taxes


As a result of our valuation allowance, provision (benefit) for income taxes
consists primarily of state income taxes and deferred taxes related to the tax
amortization of acquired goodwill. Our effective tax rate differs from the
statutory tax rate primarily due to the impact of the valuation allowance
against our deferred tax assets.
                                      21
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Operating results


The results of operations presented below should be reviewed in conjunction with
the condensed consolidated financial statements and notes included elsewhere in
this filing. The following table presents our selected consolidated statements
of operations data for the three and nine months ended September 30, 2022 and
2021.
                                               Three months ended September 30,            Nine months ended September 30,
($ In thousands, except share and per
share amounts)                                     2022                2021                   2022                   2021
Revenues                                      $    53,412          $   

39,761 $148,732 $109,724
Revenue cost(1)(2)

                             25,844              17,387                    69,081              49,064
Gross profit                                       27,568              22,374                    79,651              60,660
Operating expenses(2):
Research and development                           18,222              12,877                    48,973              35,897
Sales and marketing                                 9,721               7,216                    27,822              17,858
General and administrative                         18,337              12,415                    54,114              34,348
Acquisition-related expenses, net                     737                 915                       155               2,177
Amortization of acquired intangibles                  370                  93                       796                 274
Total operating expenses                           47,387              33,516                   131,860              90,554
Loss from operations                              (19,819)            (11,142)                  (52,209)            (29,894)
Non-operating income (expense):
Interest income                                       851                 223                     1,383                 364
Interest expense                                   (1,185)               (300)                   (2,336)               (908)
Loss on financial instruments                         (59)                  -                      (446)             (3,035)
Loss before income taxes                          (20,212)            (11,219)                  (53,608)            (33,473)
Provision (benefit) for income taxes                 (163)                  -                        80                   -
Net loss                                      $   (20,049)         $  (11,219)         $        (53,688)         $  (33,473)

(1) Includes the amortization of technology acquired from $1.4 million and
$0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $2.6 million and $0.4 million for the nine months ended
September 30, 2022 and 2021, respectively.

(2) Includes stock-based compensation expense as follows:

                                       Three months ended September 30,     

End of nine months September 30,

                                           2022                 2021                 2022                 2021
($ in thousands)
Cost of revenues                      $      1,244          $      544          $      3,278          $    1,242
Research and development                     3,023                 793                 7,487               1,795
Sales and marketing                          1,112                 266                 2,859                 609
General and administrative                   6,535               1,748                19,332               4,147
Total stock-based compensation
expenses                              $     11,914          $    3,351          $     32,956          $    7,793



                                      22
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The following table presents our reconciliation of GAAP net loss to Adjusted EBITDA for the periods indicated.

                                                      Three months ended September 30,            Nine months ended September 30,
                                                          2022                2021                   2022                   2021
($ in thousands)
Net loss                                             $   (20,049)         $

(11,219) ($53,688) ($33,473)
Provision (benefit) for income taxes

                        (163)                  -                        80                   -
Loss on financial instruments                                 59                   -                       446               3,035
Interest expense, net                                        334                  77                       953                 544
Depreciation and amortization                              2,550                 802                     5,512               2,384
Stock-based compensation expense                          11,914               3,352                    32,956               7,793

Acquisition-related expenses, net(1)                         737                 915                       155               2,177
Adjusted EBITDA (2)                                  $    (4,618)         $   (6,073)         $        (13,586)         $  (17,540)



(1) Acquisition-related expenses, net, include the accrual of deferred
compensation due to the former owner of ACH Alert, in addition to
acquisition-related expenses associated with the acquisitions of MK and Segmint,
primarily related to legal, consulting, and professional fees. In the nine
months ended September 30, 2022, these expenses are offset by the $2.7 million
gain on contingent consideration related to the purchase of MK.

(2) Adjusted EBITDA is a non-GAAP financial measure and should not be considered
an alternative to GAAP net loss as a measure of operating performance or as a
measure of liquidity. For additional information regarding adjusted EBITDA, see
"Key Business Metrics."

Key Business Metrics

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure and should not
be considered an alternative to GAAP net loss as a measure of operating
performance or as a measure of liquidity. We define adjusted EBITDA as net loss
before provision (benefit) for income taxes; loss on financial instruments;
interest expense, net; depreciation and amortization; stock-based compensation
expense; and acquisition-related expenses, net. We believe adjusted EBITDA
provides investors and other users of our financial information consistency and
comparability with our past financial performance and facilitates
period-to-period comparisons of operations. Adjusted EBITDA was $(4.6) million
and $(13.6) million for the three and nine months ended September 30, 2022,
respectively, and $(6.1) million and $(17.5) million for the three and nine
months ended September 30, 2021, respectively.

Annual Recurring Revenue (ARR). We calculate ARR by aggregating annualized
recurring revenue related to SaaS subscription services recognized in the last
month of the reporting period as well as the next 12 months of expected
implementation services revenues for all clients on the platform in the last
month of the reporting period. We believe ARR provides important information
about our future revenue potential, our ability to acquire new clients, and our
ability to maintain and expand our relationship with existing clients. ARR was
$213.6 million as of September 30, 2022 and $154.8 million as of September 30,
2021, an increase of $58.8 million, or 38.0%.

Registered Users. We define a registered user as an individual or business
related to an account holder of an FI client on our digital banking platform who
has registered to use one or more of our solutions and has current access to use
those solutions as of the last day of the reporting period presented. We price
our digital banking platform based on the number of registered users, so as the
number of registered users of our digital banking platform increases, our ARR
grows. We believe growth in the number of registered users provides important
information about our ability to expand market adoption of our digital banking
platform and its associated software products, and therefore to grow revenues
over time. We had 13.7 million registered users as of September 30, 2022 and
11.4 million as of September 30, 2021, an increase of 2.3 million, or 20.3%.

Revenue per Registered User (RPU). We calculate RPU by dividing ARR as of the
last day of the reporting period by the number of registered users as of the
last day of the reporting period. We believe RPU provides important information
about our ability to grow the number of software products adopted by new clients
over time, as well as our ability to expand the number of software products that
our existing clients add to their contracts with us over time. RPU was $15.57 as
of September 30, 2022 and $13.57 as of September 30, 2021, an increase of $2.00,
or 14.7%.
                                      23
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Comparison of three and nine months completed September 30, 2022 and 2021

Revenues
                         Three months ended September 30,                 Change                  Nine months ended September 30,                  Change
                             2022                2021                $                %               2022                2021                $                %
($ in thousands)
Revenues                 $   53,412          $  39,761          $ 13,651            34.3  %       $  148,732          $ 109,724          $ 39,008            35.6  %

                                  September 30,
                             2022                2021
Annual Recurring Revenue
(ARR)                    $  213,640          $ 154,805          $ 58,835            38.0  %
Registered Users             13,726             11,408             2,318            20.3  %
Revenue per Registered
User (RPU)               $    15.57          $   13.57          $   2.00            14.7  %



Revenues increased $13.7 million, or 34.3%, and $39.0 million, or 35.6% for the
three and nine months ended September 30, 2022, respectively, compared to the
same periods in 2021.

The increase of $13.7 million in revenues for the three months ended September
30, 2022 was primarily due to registered user growth from new and existing
clients, RPU growth, and the acquisition of Segmint completed on April 25, 2022,
which contributed $3.3 million for the three months ended September 30, 2022.

The increase of $39.0 million in revenues for the nine months ended September
30, 2022 was primarily due to registered user growth of 2.3 million, or 20.3%,
driven by the implementation of 29 new financial institutions supporting 1.2
million digital users and increased digital user adoption from our existing
clients of 1.5 million users, or 12%, partially offset by a 0.4 million decrease
in users due to client losses. In addition, increased revenues were due to RPU
growth of 14.7%. RPU growth was primarily driven by cross-sell activity to
existing clients, higher average RPU of new clients implemented in the last 12
months on our digital banking platform compared to aggregate RPU and the
acquisition of Segmint completed on April 25, 2022, which contributed $5.6
million in the nine months ended September 30, 2022. The average RPU of users
from new clients implemented on our digital platform in the last 12 months of
$17.40 as of September 30, 2022, is 11.75% higher than the aggregate RPU as of
September 30, 2022.

Revenue Cost and Gross Margin

                                Three months ended September
                                             30,                               Change                  Nine months ended September 30,                 Change
                                   2022               2021               $                %                2022               2021                $                %
($ in thousands)
Cost of revenues               $  25,844           $ 17,387          $ 8,457             48.6  %       $  69,081           $ 49,064          $ 20,017            40.8  %
Percentage of revenues              48.4   %           43.7  %           4.7  %          10.8  %            46.4   %           44.7  %            1.7  %          3.8  %



Cost of Revenues

Cost of revenues increased $8.5 million, or 48.6%, and $20.0 million, or 40.8%,
for the three and nine months ended September 30, 2022, respectively, compared
to the same periods in 2021, generating a gross margin of 51.6% and 53.6% for
the three and nine months ended September 30, 2022, respectively, compared to a
gross margin of 56.3% and 55.3% for the same periods in 2021.

The increase in cost of revenues for the three months ended September 30, 2022
was primarily driven by a $2.7 million increase in personnel-related costs
(which includes stock-based compensation of $0.6 million) resulting from
headcount increases supporting our growth in site reliability engineering,
client implementation and client support, as well as $2.3 million in higher
costs of our third-party partners where we resell their solutions as part of the
digital platform, a $0.8 million increase in hosting costs, $0.8 million of
additional costs related to the acquisition of Segmint (which includes
stock-based compensation of $0.1 million) and $1.3 million of amortization of
intangibles, $1.1 million of which is related to the acquisition of Segmint.

The increase in cost of revenues for the nine months ended September 30, 2022
was primarily driven by an $7.0 million increase in personnel-related costs
(which includes stock-based compensation of $1.8 million) resulting from
headcount increases supporting our growth in the following teams: site
reliability engineering, client implementation and client support, as well as
$6.6 million in higher costs of our third-party partners where we resell their
solutions as part of the digital platform, $1.4 million in incremental hosting
costs incurred from an increase in revenues derived from existing and new client
growth, $0.4 million in higher consulting costs, $0.3 million in higher travel
costs and $0.3 million in higher computer hardware and software costs. In
addition, we incurred $1.5 million of additional costs related to the
acquisition of Segmint (which includes stock-based compensation of $0.2 million)
and $2.2 million of amortization of intangibles, $1.7 million of which is
related to the acquisition of Segmint. We expect the cost of revenues will
continue to increase as SaaS subscription services and the associated
implementation services increase over time.
                                      24
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Operating Expenses
                                       Three months ended September
                                                    30,                               Change                  Nine months ended September 30,                   Change
                                          2022               2021                $                %                2022               2021                $                %
($ in thousands)
Research and development              $  18,222           $ 12,877          $  5,345            41.5  %       $   48,973           $ 35,897          $ 13,076             36.4  %
Sales and marketing                       9,721              7,216             2,505            34.7  %           27,822             17,858             9,964             55.8  %
General and administrative               18,337             12,415             5,922            47.7  %           54,114             34,348            19,766             57.5  %
Acquisition-related expenses, net           737                915              (178)          (19.5) %              155              2,177            (2,022)           (92.9) %
Amortization of acquired intangibles        370                 93               277           297.8  %              796                274               522            190.5  %
Total operating expenses              $  47,387           $ 33,516          $ 13,871            41.4  %       $  131,860           $ 90,554          $ 41,306             45.6  %
Percentage of revenues                     88.7   %           84.3  %                                               88.7   %           82.5  %



Research and Development

Research and development expenses increased $5.3 million, or 41.5%, and
$13.1 million, or 36.4%, for the three and nine months ended September 30, 2022,
respectively, compared to the same periods in 2021. For the three months ended
September 30, 2022, the increase was primarily due to a $3.8 million increase in
personnel-related costs (which includes stock-based compensation of $1.5
million) resulting from headcount growth in our engineering, information
technology and product teams dedicated to platform enhancements and innovation.
In addition, we incurred $1.9 million of additional costs related to the Segmint
acquisition (which includes stock-based compensation of $0.7 million). These
increases are partially offset by $0.5 million in lower consulting costs.

For the nine months ended September 30, 2022, the increase was primarily due to
a $8.8 million increase in personnel-related costs (which includes stock-based
compensation of $4.5 million) resulting from headcount growth in our
engineering, information technology and product teams dedicated to platform
enhancements and innovation, as well as $0.5 million in higher consulting costs,
$0.4 million in higher hosting costs, and $3.0 million of additional costs
related to the Segmint acquisition (which includes stock-based compensation of
$1.2 million).

Sales and Marketing

Sales and marketing expenses increased $2.5 million, or 34.7%, and $10.0
million, or 55.8%, for the three and nine months ended September 30, 2022,
respectively, compared to the same periods in 2021. For the three months ended
September 30, 2022, the increase was primarily due to a $1.9 million increase in
personnel-related costs (which includes stock-based compensation of $0.7
million) resulting from headcount growth in our sales and marketing teams. In
addition, we incurred $1.0 million of additional costs related to the Segmint
acquisition (which includes stock-based compensation of $0.2 million), $0.4
million in higher consulting costs, and $0.4 million in higher travel costs for
the sales team, partially offset by $1.1 million in lower costs related to
timing of our annual client conference.

For the nine months ended September 30, 2022, the increase was primarily due to
a $6.2 million increase in personnel-related costs (which includes stock-based
compensation of $2.0 million) resulting from headcount growth in our sales and
marketing teams. In addition, we incurred $1.8 million of additional costs
related to the Segmint acquisition (which includes stock-based compensation of
$0.3 million), $0.6 million in higher consulting costs, $0.6 million in higher
travel costs for the sales team and $0.8 million in higher costs related to
industry conferences and trade shows as we return to pre-COVID-19 pandemic sales
activities such as our in-person client conference, Co:Lab.

General and administrative


General and administrative expenses increased $5.9 million, or 47.7%, and $19.8
million, or 57.5%, for the three and nine months ended September 30, 2022,
respectively, compared to the same periods in 2021. For the three months ended
September 30, 2022, the increase was primarily due to a $4.9 million increase in
personnel-related and other costs (which includes stock-based compensation of
$4.6 million). In addition, we incurred $0.6 million of additional costs related
to the Segmint acquisition (which includes stock-based compensation of $0.2
million), $0.2 million in higher audit and consulting costs, and $0.3 million in
higher software costs.

For the nine months ended September 30, 2022, the increase in general and
administrative expenses was primarily due to a $16.1 million increase in
personnel-related and other costs (which includes stock-based compensation of
$14.9 million). In addition, we incurred $0.9 million of additional costs
related to the Segmint acquisition (which includes stock-based compensation of
$0.3 million), $1.5 million of increased insurance costs for public company
director and officer coverage and $1.0 million in higher software costs.

Acquisition-related costs, net


Acquisition-related expenses, net decreased $0.2 million and $2.0 million for
the three and nine months ended September 30, 2022, respectively, compared to
the same periods in 2021. For the three months ended September 30, 2022, the
decrease was primarily due to expenses incurred for the MK acquisition that
closed in the three months ended September 30, 2021. For the nine months ended
September 30, 2022, the decrease was primarily due to the $2.7 million gain on
contingent consideration related to the purchase of MK, partially offset by $0.8
million of increased acquisition expenses related to legal, consulting, and
professional fees for the acquisition of Segmint.

                                      25
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Amortization of acquired intangible assets


Amortization of acquired intangibles increased $0.3 million and $0.5 million for
the three and nine months ended September 30, 2022, respectively, compared to
the same periods in 2021, primarily due to additional amortization of intangible
assets related to the acquisitions of MK in September 2021 and Segmint in April
2022.

Net non-operating income (expenses)


Non-operating expense increased $0.3 million for the three months ended
September 30, 2022, compared to same period in 2021, the increase was primarily
due to $0.3 million in higher net interest expense. Non-operating expense
decreased $2.2 million for the nine months ended September 30, 2022, compared to
same period in 2021, primarily due $3.0 million in non-operating loss related to
the increase in fair value of our warrant liabilities for the nine months ended
September 30, 2021, partially offset by higher net interest expense of $0.4
million and $0.4 million of unrealized losses on marketable securities for the
nine months ended September 30, 2022.

Provision (benefit) for income taxes


The Company recorded an income tax benefit of $0.2 million and an income tax
expense of $0.1 million for the three and nine months ended September 30, 2022,
respectively, resulting in an effective tax rate of 0.8% and (0.2)%,
respectively, compared to no income tax expense for the three and nine months
ended September 30, 2021.

The difference in the effective tax rate for the three and nine months ended
September 30, 2022 as compared to the same periods in 2021 is primarily due to
state income taxes and deferred taxes related to the tax amortization of
acquired goodwill. This was partially offset by a $0.3 million deferred tax
benefit attributable to the partial release of the Company's pre-existing
valuation allowance related to the Segmint business combination, recorded in the
three months ended September 30, 2022.

Our effective tax rate differs from the statutory tax rate primarily due to the impact of the full valuation allowance on the Company’s deferred tax assets.

Cash and capital resources


As of September 30, 2022, we had $208.9 million in cash and cash equivalents and
marketable securities, and an accumulated deficit of $367.5 million. Our net
losses have been driven by our investments in developing our digital banking
platform, expanding our sales, marketing and implementation organizations and
scaling our administrative functions to support our rapid growth.

We have financed our operations primarily through the net proceeds we have
received from the sales of our redeemable convertible preferred stock and common
stock, cash generated from the sale of SaaS subscription services and borrowings
under our Amended Credit Agreement (as defined below).

On April 15, 2021, we completed our initial public offering ("IPO"), in which we
issued and sold 6,900,000 shares of our common stock, including 900,000 shares
of common stock that were sold pursuant to the exercise in full of the
underwriters' option to purchase additional shares of common stock at $30.00 per
share. Our IPO resulted in net proceeds of $192.8 million after deducting
underwriting discounts, commissions and other offering costs. With the proceeds
from our IPO, the Company paid in full accumulated dividends on our previously
outstanding shares of Series B redeemable convertible preferred stock, which
totaled approximately $5.0 million.

Our future capital requirements will depend on many factors, including revenue
growth and costs incurred to support client usage and growth in our client base,
increased research and development expenses to support the growth of our
business and related infrastructure, increased general and administrative
expenses associated with being a publicly traded company, investments in office
facilities and other capital expenditure requirements and any potential future
acquisitions or other strategic transactions.

We believe that our existing cash resources, including our Amended Credit
Agreement, will be sufficient to finance our continued operations, growth
strategy, planned capital expenditures and the additional expenses we expect to
incur as a public company for the short term (at least the next 12 months) and
longer term. We may from time to time seek to raise additional capital to
support our growth. Any equity financing we may undertake could be dilutive to
our existing stockholders, and any additional debt financing we may undertake
could require debt service and financial and operational requirements that could
adversely affect our business.

                                      26
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Cash flow

The following table summarizes our cash flows for the periods indicated:

                                                   Nine months ended September 30,
(in thousands)                                           2022               

2021

Net cash used in operating activities       $        (24,045)                  $ (16,802)
Net cash used in investing activities               (247,674)               

(20,471)

Net cash provided by financing activities             62,893                

186 886

Net cash used in operating activities


During the nine months ended September 30, 2022, net cash used in operating
activities was $24.0 million, which consisted of a net loss of $53.7 million,
adjusted by non-cash charges of $36.8 million and net cash outflows from the
change in net operating assets and liabilities of $7.2 million. The non-cash
charges were primarily comprised of depreciation and amortization expense of
$5.5 million, stock-based compensation expense of $33.6 million, and net other
changes in non-cash charges of $0.4 million, partially offset by a gain on
revaluation of contingent consideration of $2.7 million. The net cash outflows
from the change in our net operating assets and liabilities were primarily due
to a $3.7 million increase in accounts receivable, a $2.8 million increase in
prepaid expenses and other current assets, a $3.8 million increase in deferred
implementation costs, and a net $0.5 million in other balance sheet changes,
partially offset by a $3.6 million increase in accounts payable and accrued
liabilities.

During the nine months ended September 30, 2021, net cash used in operating
activities was $16.8 million, which consisted of a net loss of $33.5 million,
adjusted by non-cash charges of $13.3 million and net cash inflows from the
change in net operating assets and liabilities of $3.4 million. The non-cash
charges were primarily comprised of a non-operating loss related to the increase
in fair value of warrant liabilities of $3.0 million, depreciation and
amortization expense of $2.4 million, and stock-based compensation expense of
$7.8 million. The net cash inflows from the change in our net operating assets
and liabilities were primarily due to a $12.8 million increase in accounts
payable and accrued liabilities, partially offset by a $5.7 million increase in
accounts receivable, a $0.7 million increase in prepaid expenses and other
current assets, and a net $3.0 million in other balance sheet changes.

Net cash used in investment activities


During the nine months ended September 30, 2022, net cash used in investing
activities was $247.7 million, primarily consisting of $164.1 million for the
purchase of marketable securities, $131.3 million related to our acquisition of
Segmint, $2.8 million related to capitalized software development costs, and
capital expenditures related to updates for computer and other equipment of
$1.0 million, partially offset by $51.5 million in proceeds from maturities and
redemptions of marketable securities.

In the nine months ended September 30, 2021the net cash used in investing activities was $20.5 millioncomposed mainly of $18 million for the purchase of MK, $0.3 million related to the finalization of working capital adjustments on our acquisition of ACH Alert, $1.3 million related to capitalized software development costs and capital expenditures related to computer and other equipment updates of $0.9 million.

Net cash provided by financing activities


For the nine months ended September 30, 2022, net cash provided by financing
activities was $62.9 million, which was primarily due to proceeds of $85.0
million from issuance of long-term debt, $2.1 million from the exercise of stock
options to purchase 0.9 million shares of our common stock, and proceeds from
issuances under the Employee Stock Purchase Plan ("ESPP") of $1.8 million,
partially offset by $24.7 million of principal payments on debt, payments for
taxes related to net settlement of equity awards of $0.6 million, and debt
issuance costs paid of $0.8 million.

For the nine months ended September 30, 2021, net cash provided by financing
activities was $186.9 million, which was primarily due to the receipt of
proceeds from our IPO of $192.8 million and proceeds of $6.4 million from the
exercise of stock options to purchase 4.1 million shares of our common stock,
partially offset by the cash payment of our Series B dividend of $5.0 million
upon the consummation of our IPO, the $4.5 million payment of deferred IPO
issuance costs, and the repurchase of shares of our common stock in the amount
of $3.5 million.

Amended Credit Agreement

On April 29, 2022, we entered into an amended and restated credit agreement with
Silicon Valley Bank, Comerica Bank, and Canadian Imperial Bank of Commerce (the
"Amended Credit Agreement"). The Amended Credit Agreement amends and restates
the prior credit facility provided by Silicon Valley Bank and KeyBank National
Association. The Amended Credit Agreement matures on April 29, 2025. The Amended
Credit Agreement includes the following, among other features:

• Revolving facility: the amended credit agreement provides $40.0 million in total commitments for secured revolving loans (“Amended Revolving Facility”).


•Term Loan: A term loan of $85.0 million (the "Amended Term Loan") was borrowed
on the closing date of the Amended Credit Agreement. The additional proceeds
received from the Amended Term Loan were used to replenish cash used to fund the
acquisition of Segmint, which closed on April 25, 2022.

• Accordion Feature: The Amended Credit Agreement also allows us, subject to certain conditions, to request additional revolving loan commitments in an aggregate principal amount of up to $50.0 million.

                                      27
--------------------------------------------------------------------------------


Amended Revolving Facility loans under the Amended Credit Agreement may be
voluntarily prepaid and re-borrowed. Principal payments on the Amended Term Loan
are due in quarterly installments equal to an initial amount of approximately
$1.1 million, beginning on June 30, 2023 and continuing through March 31, 2024,
and increasing to approximately $2.1 million beginning on June 30, 2024 through
the Amended Credit Agreement maturity date. Once repaid or prepaid, the Amended
Term Loan may not be re-borrowed.

Borrowings under the Amended Credit Agreement bear interest at a variable rate
based upon the Secured Overnight Financing Rate ("SOFR") plus a margin of 3.00%
to 3.50% per annum depending on the applicable recurring revenue leverage ratio.
If the SOFR rate is ever less than 0%, then the SOFR rate shall be deemed to be
0%. The Amended Credit Agreement is subject to certain liquidity and operating
covenants and includes customary representations and warranties, affirmative and
negative covenants and events of default.

Obligations under the Amended Credit Agreement are secured by our subsidiaries and secured by all or substantially all of our assets and the assets of our subsidiaries pursuant to an amended and restated security and surety agreement executed in concurrently with the Amended Credit Agreement.


The Amended Credit Agreement contains customary affirmative and negative
covenants, as well as (i) an annual recurring revenue growth covenant requiring
the loan parties to have recurring revenues in any four consecutive fiscal
quarter period in an amount that is 10% greater than the recurring revenues for
the corresponding four consecutive quarter period in the previous year and (ii)
a liquidity (defined as the aggregate amount of cash in bank accounts subject to
a control agreement plus availability under the Revolving Facility) covenant,
requiring the loan parties to have liquidity, tested on the last day of each
calendar month, of $15.0 million or more. The Amended Credit Agreement also
contains customary events of default, which if they occur, could result in the
termination of commitments under the Amended Credit Agreement, the declaration
that all outstanding loans are immediately due and payable in whole or in part,
and the requirement to maintain cash collateral deposits in respect of
outstanding letters of credit.

Total interest expense, including commitment fees and unused line fees, for the
three and nine months ended September 30, 2022 was $1.2 million and $2.3
million, respectively, and $0.3 million and $0.9 million for the three and nine
months ended September 30, 2021, respectively. In conjunction with closing the
Amended Credit Agreement in 2022, we incurred issuance costs of $0.8 million,
which were deferred and were scheduled to be amortized over the three-year term.
Unamortized debt issuance costs totaled $0.5 million and $0.1 million as of
September 30, 2022 and December 31, 2021, respectively. Amortization expense was
less than $0.7 million and $0.9 million for the three and nine months ended
September 30, 2022, respectively. Amortization expense was $0.2 million and
$0.6 million for the three and nine months ended September 30, 2021,
respectively.

Contractual obligations and commitments


There were no material changes to our contractual obligations and commitments as
of September 30, 2022 compared to those discussed as of December 31, 2021 in our
Annual Report on Form 10-K for the year ended December 31, 2021, filed with the
SEC on February 25, 2022.

Off-balance sheet arrangements


We did not have during the periods presented, and we do not currently have, any
off-balance sheet financing arrangements or any relationships with
unconsolidated entities or financial partnerships, including entities sometimes
referred to as structured finance or special purpose entities, that were
established for the purpose of facilitating off-balance sheet arrangements or
other contractually narrow or limited purposes.

Critical Accounting Policies and Significant Judgments and Estimates


In preparing our unaudited condensed consolidated financial statements in
conformity with GAAP, we must make decisions that impact the reported amounts of
assets, liabilities, revenues and expenses, and the related disclosures. Such
decisions include the selection of the appropriate accounting principles to be
applied and the assumptions on which to base accounting estimates. In reaching
such decisions, we apply judgments based on our understanding and analysis of
relevant circumstances, historical experience, and actuarial valuations. Actual
amounts could differ from those estimated at the time the condensed consolidated
financial statements are prepared.

There have been no material changes to our critical accounting policies and
estimates as compared to the critical accounting policies and estimates
described in "Management's Discussion and Analysis of Financial Condition and
Results of Operations" set forth in our Annual Report on Form 10-K for the year
ended December 31, 2021, filed with the SEC on February 25, 2022.

Recently issued accounting pronouncements

See Note 2 of the Notes to our unaudited condensed consolidated financial statements included elsewhere in this report for a discussion of recent accounting pronouncements and future application of accounting standards.

Emerging Growth Company Status


We are an "emerging growth company," as defined in the JOBS Act. Under the JOBS
Act, emerging growth companies can delay adopting new or revised accounting
standards issued subsequent to the enactment of the JOBS Act until such time as
those standards apply to private companies. We have elected to use this extended
transition period to enable us to comply with new or revised accounting
standards that have different effective dates for public and private companies
until the earlier of the date we (i) are no longer an emerging growth company or
(ii) affirmatively and irrevocably opt out of the extended transition period
provided in the JOBS Act. As a result, our consolidated financial statements may
not be comparable to companies that comply with new or revised accounting
pronouncements as of public company effective dates.
                                      28

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© Edgar Online, source Previews

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Tips for starting a new business https://gametowne.com/tips-for-starting-a-new-business/ Tue, 01 Nov 2022 22:01:18 +0000 https://gametowne.com/tips-for-starting-a-new-business/ Despite the setbacks of recent years, Australia’s small business sector is thriving. More and more people are starting their own business and the trend looks set to continue. Studies show projections that about 3.5 million small businesses will be created over the next 10 years, bringing $370 billion in value to the economy. Let’s look […]]]>

Despite the setbacks of recent years, Australia’s small business sector is thriving. More and more people are starting their own business and the trend looks set to continue.

Studies show projections that about 3.5 million small businesses will be created over the next 10 years, bringing $370 billion in value to the economy.

Let’s look at some things to consider if you’re considering starting your own business and how to set yourself up for success.

Why do you want to do it?

Before you begin, it’s important to determine if owning and running your own business is the right thing for you. Everyone has their own reason for settling; for example, maybe you are looking for more flexibility, are unemployed and need a job, want to be your own boss, or have you spotted an opportunity and want to fill an unmet need.

Asking yourself a few key questions at the outset helps you plan your business model and gives you a foundation to build on.

  • How good is my business idea?
  • Can I get access to money to start?
  • How will I manage finances?
  • Am I ready to ask for help?
  • How will I promote my idea?

Make a plan

A business plan is essential, it will define your goals and objectives and help you make key decisions, including how to accept payments, attract customers, manage your finances and even obtain funding to get started. It will also establish if there is a need for the business in the first place through research and surveys, helping to define the strategies and deadlines that need to be implemented and met.

More importantly, banks and investors often need a viable business plan before deciding whether to provide capital for a new venture.

Ask for help

Relying on your business community for advice can help save you time when a problem arises and prevent you from making mistakes that could be avoided.

Data shows that most people rely on internet searches or social media to find out how to start a business. Few people think of talking to their bank when getting started, despite the availability of dedicated experts to guide new business owners.

Talking to a business banking expert can help you understand what financial assistance you may need, whether you need to apply for a business loan, equipment financing, or inquire about government support available to contractors.

Financial direction

Being in charge of your company’s finances and knowing how to manage your cash flow is essential. A basic need for any new business is also to choose the right account to ensure that day-to-day business transactions can be processed.

There are a multitude of accounts aimed at small business owners. Look for ones that don’t charge fees, as well as other features like cybersecurity protection for digital payments. CommBank Business transaction account is a good example that allows you to see your cash flow at a glance, without high fees. Plus one Smart terminal can help you stay connected, ensuring you’re always ready to accept payments.

You may also need to ensure that you have quick access to finance, whether to purchase assets such as goods, vehicles and equipment, or to pay staff and suppliers.

Look for options that offer no deposit or monthly fees, as well as those that provide access to funds locked on unpaid bills, such as CommBank. Working capital flow cash solution.*

Marketing and customer relations

No business will be successful if it can’t connect effectively with customers and customers, backed by a marketing plan that will grow your business with customer referrals and repeat customers.

There are many ways to get clients; advertising, social media and word of mouth. How you choose to acquire new customers is up to you, but it’s best to have a plan for each method. If you rely on the Internet for leads, support, and delivery, there are excellent business offers tailored to different business needs.

Shop around and set yourself up for success early on, while laying the foundation for future growth and expansion.

Get more in business with CommBank

CommBank makes day-to-day business banking easier by giving you greater control, services and tools to start, manage and grow your business.
Visit commbank.com.au/business to find out more.

What you need to know :

This article has been prepared without considering your individual or professional needs and objectives. You can view the
Terms and Conditions for Business and Savings Accountsour Financial Services Guide and the Electronic Banking General Terms and Conditions and should consider them before making any decision regarding such products and services. Bank fees and charges may apply.
*Requests for financing are subject to the Bank’s eligibility and suitability criteria and normal credit approval processes. The minimum value of nominated invoices is $15,000 per month. A minimum facility limit of $50,000 or more applies to Stream’s working capital. Full terms and conditions, interest rate, set-up fee and line charge are included in the loan offer, you should consider them before making any decision on these products. Bank fees and charges may apply.

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Absa Bank-MEST Hackathon focuses on fintech and banking industry solutions https://gametowne.com/absa-bank-mest-hackathon-focuses-on-fintech-and-banking-industry-solutions/ Sun, 30 Oct 2022 09:39:03 +0000 https://gametowne.com/absa-bank-mest-hackathon-focuses-on-fintech-and-banking-industry-solutions/ Absa Bank and Meltwater Entrepreneurial School of Technology (MEST) hosted a transformational Hackathon event focused on finding solutions to challenges in fintech and the banking space. The three-day residential event was part of a partnership between the two companies to support start-up businesses in Ghana with skills training and insight into digital technology. The aim […]]]>

Absa Bank and Meltwater Entrepreneurial School of Technology (MEST) hosted a transformational Hackathon event focused on finding solutions to challenges in fintech and the banking space.

The three-day residential event was part of a partnership between the two companies to support start-up businesses in Ghana with skills training and insight into digital technology.

The aim is to unlock new opportunities by co-creating and producing the next generation of innovative entrepreneurs in Ghana and on the continent.

A total of 20 teams of five participants each (comprising thinkers, innovators and designers) came together to deliver innovative products and services that meet the needs of Absa’s customers.

Absa Bank’s digital transformation team selected key topics around SME financing, environmental and sustainable solutions in banking; mass market financial services and agribusiness value chain banking.

These topics were presented to the participating teams to choose the most appropriate ones and work to provide suitable solutions.

The winning team, Team Insyt, who took home a cash prize of ¢50,000, developed a solution to help banks make better data-driven credit decisions.

Their rationale was underscored by the fact that more than 80% of loan applications are rejected because traditional banks lack sufficient data to make better credit decisions.

Commenting on the competition, Absa Bank’s Head of Corporate Banking Grace Anim-Yeboah said:

“That’s what we mean by bringing possibilities to life. The relentless innovation displayed by the participating teams is a testament to the talent we have in the country.

“The solutions they have offered for the fintech and banking space are immense, and we are happy to be a part of them. Our partnership with MEST will provide many opportunities for startups and the use of next-gen ideas for the socio-economic growth of Ghana.

MEST Director of Programs, Femi Adewumi said, “It was inspiring to see the MEST campus filled with one hundred young creative minds from eleven African countries, tackling issues in the banking and finance space. .

“The excitement and energy was palpable. The Absa – MEST partnership has proven to be very progressive. We see a lot of opportunities available for many fintech and banking startups in Ghana and MEST is always happy to be a facilitator.

Beyond the competition, Absa Bank’s digital transformation team brings together all the solutions delivered by the teams to select a few that are commercially implementable for Absa’s clients and customers.

DISCLAIMER: The views, comments, opinions, contributions and statements made by readers and contributors on this platform do not necessarily represent the views or policies of Multimedia Group Limited.

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Horizon Bank increases quarterly profit by 3.3% year-on-year https://gametowne.com/horizon-bank-increases-quarterly-profit-by-3-3-year-on-year/ Thu, 27 Oct 2022 21:17:00 +0000 https://gametowne.com/horizon-bank-increases-quarterly-profit-by-3-3-year-on-year/ Horizon Bank reported a profit of $23.8 million in the third quarter. That’s up 3.3% year-over-year, but down 4.2% from the second quarter. The Michigan City-based bank earned 55 cents per share, down from 52 cents in the third quarter of last year, but down from 57 cents in the second quarter. “We are proud […]]]>

Horizon Bank reported a profit of $23.8 million in the third quarter.

That’s up 3.3% year-over-year, but down 4.2% from the second quarter.

The Michigan City-based bank earned 55 cents per share, down from 52 cents in the third quarter of last year, but down from 57 cents in the second quarter.

“We are proud of the performance of our merchant banking and consumer finance teams who delivered annualized loan growth of 7.8% in the third quarter, excluding PPP loans and commercial equity loans sold,” said said Chairman and CEO Craig Dwight. “This continued strong loan growth drove higher net interest income and more than offset headwinds from lower residential mortgage activity and wealth management fees, as well as higher cost funds due to rapidly rising interest rates.”

People also read…

In the third quarter, Horizon Bank posted a return of 1.24% on average assets and 18.71% on average tangible equity.

It grew lending 14.5% year-over-year and 7.9% quarter-over-quarter. Commercial loans rose 13.8% to a record $2.35 billion, while consumer loans rose 31.7% year-over-year to a record 899 .9 million.

“As the current economic environment continues to face rising inflation and supply chain disruption, we remain focused on positioning ourselves to continue to meet the changing needs of our customers,” said Dwight. “We believe our investments in talent to enhance our capabilities and prepare for the future support our disciplined growth trajectory, and with the benefit of our strong balance sheet and strong asset quality metrics, will continue to improve. our performance through the end of 2022 and into 2023.”

Net interest income increased by $387,000 in the third quarter. Dwight attributed it to strong loan growth.

“To support this level of growth, we had to increase borrowings and this impacted the adjusted net interest margin by four basis points in the quarter,” he said. “The overall cost of funds has been contained at 0.69%, which provides a strong margin for new loans to come. aggressively seek lower cost deposit funding Horizon’s deposit betas were 23% for the third quarter and in line with our expectation of around 35%, however additional pressure is expected as the Board of Governors Federal Reserve will likely continue to rapidly raise rates over the next few months.”

Horizon Bank made significant progress in the third quarter toward reducing its annualized ratio of non-interest expense to average assets to below 2%. It reached 1.99% at the end of the third quarter.

“We remain disciplined and focused on expense management, a critical part of our strategy given the economic uncertainty and rising inflation,” Dwight said. “However, we are confident in our ability to continue to reduce our annualized target to less than 2%. We expect the higher expense rate we incurred in the third quarter to be significantly reduced from the first. quarter of 2023. Additionally, in 2023, we expect to see the full year benefits of seven additional branch closures and associated cost savings.”

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PEOPLES BANCORP INC. AND LIMESTONE BANCORP, INC. ANNOUNCE A FINAL MERGER AGREEMENT https://gametowne.com/peoples-bancorp-inc-and-limestone-bancorp-inc-announce-a-final-merger-agreement/ Tue, 25 Oct 2022 10:10:00 +0000 https://gametowne.com/peoples-bancorp-inc-and-limestone-bancorp-inc-announce-a-final-merger-agreement/ MARIETTA, Ohioand LOUISVILLE, Ky., October 25, 2022 /PRNewswire/ — Peoples Bancorp Inc. (“People”) (NASDAQ: PEBO) and Limestone Bancorp, Inc. (“Limestone”) (NASDAQ: LMST), jointly announced today the signing of a definitive agreement and a plan of merger (the “Merger Agreement”) under which Peoples will acquire, in an all-stock merger, Limestone, a bank holding company headquartered in […]]]>

MARIETTA, Ohioand LOUISVILLE, Ky., October 25, 2022 /PRNewswire/ — Peoples Bancorp Inc. (“People”) (NASDAQ: PEBO) and Limestone Bancorp, Inc. (“Limestone”) (NASDAQ: LMST), jointly announced today the signing of a definitive agreement and a plan of merger (the “Merger Agreement”) under which Peoples will acquire, in an all-stock merger, Limestone, a bank holding company headquartered in Louisville, Kentucky, and the parent company of Limestone Bank, Inc. (“Limestone Bank”). Pursuant to the Merger Agreement, Limestone will merge with and into Peoples (the “Merger”), and Limestone Bank will subsequently merge with and into Peoples’ wholly owned subsidiary, Peoples Bank, in a transaction valued at approximately $208.2 million.

Following the Merger, the combined company will have approximately $8.5 billion in total assets, $5.7 billion of total loans and $7.1 billion in total depots with 150 locations in Ohio, West Virginia, Kentucky, Maryland, Virginia and WashingtonCC

Limestone, through its community banking subsidiary and 226 associates, operates 20 branches in 14 Kentucky counties. From September 30, 2022Limestone had, on a consolidated basis, $1.5 billion of total assets, which included $1.1 billion in total net loans, and $1.2 billion in total deposits.

“We are excited about our partnership with Limestone and our entry into strategically important markets in Kentucky. We view Limestone’s corporate culture and philosophy to be very similar to ours and have been impressed with what John Taylor and his team were able to accomplish,” said chuck sulerzyski, President and CEO of Peoples. “Over the years, we have expanded our presence in Kentucky to 25 branches, with Limestone adding an additional 20 branches to our Kentucky footprint. We look forward to welcoming Limestone shareholders, employees and customers to the Peoples team, and are excited to offer additional locations to new and existing Peoples Bank customers. »

John TaylorChairman and CEO of Limestone, said, “People is an exceptional organization with exceptional leadership. Our shareholders, customers and employees will benefit from Peoples’ track record of profitable growth and successful acquisitions, as well as the opportunities this merger of our banks presents. We are excited about Peoples’ extensive product line, which will allow us to offer new products and services, including insurance and investment products, to our valued customers in the communities we serve. Peoples’ community banking model, culture and commitment to high quality customer service makes Peoples a great partner for Limestone. »

Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both companies, Limestone shareholders will receive 0.90 shares of Peoples common stock for each share of Limestone common stock, and the merger should qualify as a tax-free reorganization for Limestone shareholders. Based on Peoples closing price of $30.28 per share at October 21, 2022the overall value of the transaction is approximately $208.2 millionWhere $27.25 per share. The transaction is expected to be immediately accretive to Peoples’ estimated earnings before one-time costs, with a tangible book value of approximately 2.8 years (including interest rate marks) and an internal rate of return greater than 20% .

The acquisition is expected to close in the second quarter of 2023, subject to the satisfaction of customary closing conditions, including regulatory approvals and approval from Peoples and Limestone shareholders.

Peoples was advised by Raymond James & Associates, Inc. and the law firm Dinsmore & Shohl LLP. Limestone was advised by Piper Sandler & Co. and the law firm wyattTarrant & Combs, LLP.

Important information for investors and shareholders
:

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Peoples. Peoples will file a registration statement on Form S-4 and other documents regarding the proposed transaction referenced in this press release with the Securities and Exchange Commission (“SEC”) to register the shares of Peoples common stock for issuance to stockholders. of Limestone. The registration statement will include a joint proxy statement/prospectus, which will be sent to shareholders of Peoples and Limestone prior to their respective special meetings of shareholders to be held to consider the proposed merger. Investors and security holders are urged to read the proxy statement/prospectus and any other relevant documents to be filed with the SEC in connection with the proposed transaction, as they contain important information about Peoples, Limestone and the proposed transaction. Investors and security holders may obtain a free copy of these documents (when available) at the website operated by the SEC at www.sec.gov. These documents may also be obtained, free of charge, by making a request to Peoples Bancorp Inc., 138 Putnam Street, PO Box 738, Marietta, Ohio 45750, Attn: Investor Relations.

Peoples and Limestone and certain of their directors and executive officers may be considered participants in the solicitation of proxies from Limestone shareholders in connection with the proposed merger. Information about the directors and executive officers of Peoples is set forth in the Proxy Circular for Peoples’ 2022 Annual Meeting of Stockholders, as filed with the SEC on Schedule 14A on March 17, 2022. Information about Limestone’s directors and officers is set forth in the proxy statement for Limestone’s 2022 annual meeting of stockholders, as filed with the SEC on Schedule 14A on April 15, 2022. Additional information regarding the interests of such participants and other persons who may be considered participants in the transaction may be obtained by reading the proxy statement/prospectus relating to the proposed merger when it becomes available. Free copies of this document may be obtained as described in the preceding paragraph.

About Peoples Bancorp Inc.:

Peoples is a diversified financial services holding company that offers a full range of banking, trust and investment, insurance, premium financing and equipment rental solutions through its subsidiaries. Peoples is headquartered in Marietta, Ohio since 1902. The peoples had $7.0 billion of total assets at September 30, 2022and 130 sites, including 113 multi-service bank branches in Ohio, West Virginia, Kentucky, Virginia, washington d.c. and Maryland. The people’s vision is to be the best community bank in America.

Peoples is a member of the Russell 3000 Index of publicly traded US companies. Peoples provides services through Peoples Bank (which includes divisions of Peoples Investment Services, Peoples Premium Finance and NSL), Peoples Insurance Agency, LLC and Vantage Financial, LLC (“Vantage”).

About Limestone Bancorp, Inc.:

Limestone is a Louisville, Kentucky– bank holding company with $1.5 billion active at September 30, 2022. It operates banking centers in 14 counties through its wholly owned subsidiary Limestone Bank. Limestone markets include metropolitan areas Louisville in Jefferson County and the surrounding counties of Bullit and Henry and extend south along the Interstate 65 corridor. The limestone serves the South Central, South and West Kentucky banking centers in Bare, Butler, Davies, edmonson, Green, Hardin, Stag, Ohioand Warren counties. Limestone also has banking centers in Lexington, Kentuckythe second largest city in the state, and Frankfurt, Kentucky, the state capital. Limestone Bank is a traditional community bank offering a wide range of personal and business banking products and services.

Safe Harbor Statement:

Statements made in this press release that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934 , as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including, but not limited to, the success and completion of the transaction contemplated in this release, which includes maintaining relationships with acquired customers, adverse changes in economic conditions, the impact of competitive products and pricing, and the other risks set forth in the Company’s filings with the SEC. Therefore, actual results may differ materially from the forward-looking statements contained in this press release. These factors are not necessarily all of the factors that could cause the actual results, performance or achievements of Peoples or the combined company to differ materially from those expressed or implied by any of the forward-looking statements. Other unknown or unpredictable factors could also adversely affect the results of Peoples or the combined company.

Peoples and Limestone encourages readers of this press release to understand that forward-looking statements are strategic objectives rather than absolute targets of future performance. The Companies undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unforeseen events, except as required by applicable legal requirements. If Peoples or Limestone updates one or more forward-looking statements, no inference should be drawn that Peoples or Limestone will make additional updates with respect to such or other forward-looking statements. Copies of documents filed with the SEC are available free of charge on the SEC’s website at http://www.sec.gov and/or on Peoples’ website (with respect to documents filed by Peoples with the SEC) and on the Limestone website (with respect to filings).

SOURCE Peoples Bancorp Inc.

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Lloyds Banking Group is also Saf https://gametowne.com/lloyds-banking-group-is-also-saf/ Sat, 22 Oct 2022 01:54:35 +0000 https://gametowne.com/lloyds-banking-group-is-also-saf/ British Prime Minister Liz Truss was kicked out by bond market vigilantes earlier this week. As we do not yet know who will be the next leader of the country, owner of Lloyds Banking Group PLC (LSE: LLOY, Financial) (LYG, financial) could be considered a somewhat contrarian gamble. Fundamentally, however, retail banking is in good […]]]>

British Prime Minister Liz Truss was kicked out by bond market vigilantes earlier this week. As we do not yet know who will be the next leader of the country, owner of Lloyds Banking Group PLC (LSE: LLOY, Financial) (LYG, financial) could be considered a somewhat contrarian gamble.

Fundamentally, however, retail banking is in good shape and well positioned to benefit from the UK macro situation. Lloyds’ balance sheet is now very positive as interest rates rise, as its funding is heavily weighted to long-term cash deposits, well matched with assets of similar duration.

It’s no wonder this stock is one of the gurus

David Herro (Trades, Portfolio) the main financial holdings of its Oakmark International Fund. I think Lloyds has been overlooked by the market, but it’s a good carry trade as the stock should follow the hawkish interest rate environment. Higher interest rates will bring margin and revenue growth to the UK’s largest retail bank.

Expressed in dollars for Lloyds’ US Certificate of Deposit, the stock is down nearly 29% year-to-date, largely due to the weak pound. Similarly, London-listed shares are down 12.5% ​​as fears over the UK economy and general political instability have deterred investors. Additionally, the high volatility of UK government bonds, known locally as gilts, and rising gilt yields spooked some investors. As UK banks are large owners of gilts, jumps in yields or lower bond prices would mean Tier 1 base capital levels would fall. With the respected Jeremy Hunt now in place as UK Chancellor of the Exchequer or Finance Minister, things appear to have calmed down in government bond markets, helped by Bank of England actions to ensure order.

More fundamentally for Lloyds, and something the bank can control, is that its very size is a competitive advantage. Rivals such as Monzo failed to gain traction and upset Britain’s big five banks – Barclays PLC (BCS, Financial), Lloyds, HSBC Holdings PLC (HSBC, Financial), Banco Santander SA (SAN, financial) and NatWest Group PLC (NWG, Financial). Deposits are sticky, giving these big banks a financial edge. UK consumers have also been saving more thanks to the economic uncertainty and as a result that money is ending up in higher deposits in banks.

We can see this in the latest Money & Credit report from the Bank of England. Households increased their cash levels to the highest rate since 2010 and paid off their debts. Deposits recorded net flows of 4.3 billion pounds ($4.8 billion) in July, compared to 2.6 billion pounds in June. In addition, term deposits increased by £2.8 billion to the highest levels since November 2010. Savers are depositing more now that short-term interest rates are approaching zero. This demonstrates that banks like Lloyds are now much less dependent on capital markets.

Net interest margins

Lloyds’ position as the UK’s largest mortgage lender also gives it economies of scale. If demand for mortgages drops, the bank is confident that it can cut mortgage rates to regain market share. On the other hand, he can manage the risk if he is worried about credit risk by increasing his margins for new loans.

The bank is poised to gain market share from smaller, specialist lenders as these groups rely more on capital markets for funding, and its cost of capital is rising faster than those from sticky deposits including Lloyds. benefits. Lloyds’ market share in the UK mortgage market has remained stable at around 18%, with NatWest holding the second-largest share at around 12%.

A Berenberg research report sent to me recently noted that for every one percentage point increase in interest rates, UK bank revenues can increase by four to eight percentage points, which probably means an 8-20% increase in pre-tax profits.

Lloyds focused on mortgages, so it has a relatively small commercial banking business and no investment banking to speak of. Lending outside of mortgages has been quiet and the bank has been focused on building up capital reserves, so the rise in interest rates hasn’t really affected growth in non-mortgage lending, as it it was already such a small line of income. The bank’s focus on cost control during the pandemic has given it a very strong balance sheet now. He also has a high Piotroski F-Score of 8.

The bank announced a loan-to-deposit ratio of 95% as of June 30, which is a conservative figure. Generally, less than 100% is good, while more than 100% is bad, as this indicates that the loans are not funded by volatile capital markets.

Currently, the UK labor market is quite tight and wage growth is strong. The country’s current shortfall in housing supply means Lloyds’ mortgage-dominated asset base should be resilient even in a downturn. This makes Lloyds less risky than Barclays, which has a much larger credit card business where writedowns could develop.

Evaluation and conclusion

Lloyds is trading on a forward price-to-earnings ratio of 6.4. It has a tangible price-to-book ratio of just 0.7 and a dividend yield of 5.1%, which is near a one-year high. All of these metrics are better than its industry peers, according to data from GuruFocus.

With the pound potentially stabilizing at current levels, Lloyds looks pretty cheap.

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