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MIL-OSI China: China prepares to launch Shenzhou-19 crewed spaceship

Source: China State Council Information Office 2

This photo taken on Oct. 22, 2024 shows the combination of the Shenzhou-19 crewed spaceship and a Long March-2F carrier rocket being transferred to the launch area. [Photo/Xinhua]
The combination of the Shenzhou-19 crewed spaceship and a Long March-2F carrier rocket has been transferred to the launch area, the China Manned Space Agency (CMSA) said on Tuesday.
According to the CMSA, facilities and equipment at the launch site are in good condition, while various pre-launch function checks and joint tests will be carried out as planned.
The spaceship will be launched at an appropriate time in the near future, the CMSA said.

This photo taken on Oct. 22, 2024 shows the combination of the Shenzhou-19 crewed spaceship and a Long March-2F carrier rocket being transferred to the launch area. [Photo/Xinhua]

MIL-OSI China: China’s dark energy detector granted SKA pathfinder status

Source: China State Council Information Office 2

This undated file photo shows an array of China’s Tianlai Experiment, a project aimed to test key technologies for detecting dark energy, in the Kazak Autonomous County of Barkol in northwest China’s Xinjiang Uygur Autonomous Region. [Photo/National Astronomical Observatories of the Chinese Academy of Sciences]
China’s Tianlai Experiment, a scientific project aimed at detecting dark energy using a radio telescope array, has been officially granted “pathfinder” status by the Square Kilometre Array (SKA) Observatory, according to the National Astronomical Observatories (NAOC) of the Chinese Academy of Sciences.
The SKA is a next-generation giant radio telescope array that is under construction. Once completed, it will be the world’s largest radio telescope array. China, South Africa, the United Kingdom, Australia and six other nations make up the project’s official membership.
Facilities involved in SKA-related science and technology studies are called SKA pathfinders or SKA precursors. Several radio telescopes around the world have been certified as SKA pathfinders, said Chen Xuelei, chief scientist of the Tianlai Experiment and a researcher at the NAOC, which operates the project.
The latest discoveries from these pathfinders can provide new scientific exploration opportunities for the SKA, and their related technologies may be applied to the construction of the SKA and future radio telescopes, Chen said.
Located in the Kazak Autonomous County of Barkol in northwest China’s Xinjiang Uygur Autonomous Region, the Tianlai Experiment consists of two arrays: the Tianlai cylinder array, which has three adjacent cylindrical reflectors with a total of 96 receivers, and the Tianlai dish array, which consists of 16 dishes, each six meters in diameter.
The project aims to test key technologies for detecting dark energy, which is thought to make up about 70 percent of the cosmos and drive the acceleration of its expansion.
Dark energy cannot be detected directly, but its abundance and properties can be analyzed by observing how the expansion rate of the universe changes over time. The “sound” of the Big Bang left an imprint on the matter distribution in the early universe that has now grown into large-scale structures. By studying the large-scale matter distribution, astronomers can derive these “baryon acoustic oscillations” and determine the cosmic expansion rate over time.
Tianlai, which literally means “heavenly sounds,” aims to detect these acoustic oscillations. It will search for the 21-centimeter signals emitted by hydrogen atoms, with hydrogen being the most abundant element in the universe. As the universe is expanding, these 21-centimeter signals have gradually shifted to longer wavelengths in a process referred to as “redshift.”
The Tianlai Experiment will cover a range of radio wavelengths — thereby also covering redshifted signals — to generate a map of the three-dimensional distribution of matter in the universe, Chen said.
The Tianlai research team is composed of scholars and graduate students at the NAOC and other Chinese universities, as well as experts and scholars from foreign research institutions.

MIL-OSI China: Chinese private rocket company completes static fire test of ZQ-2E rocket

Source: China State Council Information Office 2

The Chinese private rocket company LandSpace successfully conducted the static fire test on the second stage of the Zhuque-2E (ZQ-2E) carrier rocket on Monday.
The test conditions covered typical flight situations, verified the correctness of the overall and subsystem design of the ZQ-2E second stage, and examined the matching of the interfaces and operations between systems, according to the company.
ZQ-2E is a modified version of the company’s self-developed ZQ-2 carrier rocket, which is the world’s first liquid oxygen-methane rocket to enter into orbit, a breakthrough in the application of new low-cost liquid propellant for China’s launch vehicles.
According to the LandSpace, the ZQ-2E is a medium-class liquid-fueled carrier rocket with liquid oxygen and methane as propellant.
This test provided important data and technical support for the future first flight test mission and regular launch missions of the ZQ-2E carrier rocket, the company said.

MIL-OSI China: China’s air, water quality improves in first three quarters

Source: China State Council Information Office 2

New data has shown a steady improvement in China’s air and water quality in the first nine months of this year.
During the January-September 2024 period, the average density of PM2.5 in 339 Chinese cities at or above the prefecture level stood at 27 micrograms per cubic meter, down 3.6 percent year on year, Pei Xiaofei, spokesperson for the Ministry of Ecology and Environment, told a press conference on Tuesday.
The proportion of days with good air quality in these cities during this period was 85.8 percent, up 1.6 percentage points from the same period last year, Pei said.
Pei added that 88.5 percent of monitored sections had “fairly good” surface water quality — at or above Grade III in the country’s five-tier water quality system, an increase of 1.4 percentage points year on year.
The share of surface water at Grade V, the lowest level, stood at 0.7 percent, remaining flat compared with a year earlier, according to the spokesperson.
China has steadfastly advanced its “Beautiful China” initiative, emphasizing ecological and environmental protection as a top priority in its social and economic development.

MIL-OSI China: Beijing, Chengdu top China’s sci-fi city index

Source: China State Council Information Office 3

On Oct. 18, China’s latest science fiction city index was released, with Beijing and Chengdu topping the list, providing a reference for Chinese cities to develop their sci-fi industries and learn from each other.

Professor Wu Yan speaks at the release of the 2024 China Science Fiction City Index Report in Chengdu, Sichuan province, Oct. 18, 2024. [Photo courtesy of China Science Fiction Research Center]

The 2024 China Science Fiction City Index Report, compiled by the China Science Fiction Research Center, Chengdu Institute for High-Quality Development, and Shenzhen Science and Fantasy Growth Foundation, considers various factors such as economic foundation, technological innovation, cultural consumption and policy environment. The report evaluated 26 cities in China, each with a GDP exceeding 1 trillion yuan in 2023.

“We hope to build a scientific evaluation index system to comprehensively and objectively reveal the differences and characteristics of different cities in terms of sci-fi development, providing a reference for cities to develop sci-fi and learn from each other,” said Wu Yan, a Chinese sci-fi pioneer, scholar, writer and professor at the Southern University of Science and Technology’s Center for the Humanities. Wu presented the report on behalf of the project team during the 2024 TianWen Chinese Science Fiction Literature Contest awards ceremony, which was held last weekend in Chengdu, Sichuan province.

In designing the indicators, the project team followed four major principles: “scientific and practical,” “stable and dynamic,” “measurable and comparable” and “comprehensive and representative.” Based on the core concepts and strategic orientation of evaluation, they crafted three primary indicators: “industry development,” “cultural dissemination” and “fusion capabilities.”

Each primary indicator was composed of secondary indicators, such as the intensity of sci-fi film and TV consumption, and the number of sci-fi related policy documents, sci-fi writers, sci-fi books published and sci-fi events. The selection of secondary indicators focused on measurability and representativeness, aiming to systematically assess the level of sci-fi development in cities in a multi-dimensional manner.

The top 10 cities according to the selection criteria were: Beijing, Chengdu, Shanghai, Nanjing, Shenzhen, Hangzhou, Chongqing, Guangzhou, Wuhan and Changsha.

Beijing, the capital of China and the city with the most resources, scored 81.01. The city has developed a sci-fi industry that encompasses content creation, IP conversion, special effects production, hard technology and immersive experiences. In 2020, the China Association for Science and Technology and the Beijing municipal government agreed to establish a sci-fi industry cluster at Shougang Park. The following year, Shijingshan district, where the park is located, launched measures to support and fund the formation of the nation’s sci-fi industry consortium.

Chengdu, known as the “capital of Chinese sci-fi” and host of the 81st World Science Fiction Convention in 2023, scored 78.44. The magazine Science Fiction World, a leading global sci-fi publication for over 40 years which is headquartered in the city, has launched the careers of numerous prominent writers, including Liu Cixin. The city also holds prestigious awards such as the Galaxy Awards and the Chinese Nebula Awards.

In 2023, Chengdu’s sci-fi industry revenue hit 23.52 billion yuan, up by 17.49% from the previous year, showcasing robust growth. Chen Ling, secretary general of the China Science Writers Association and executive deputy director of the China Science Fiction Research Center, highlighted the crucial role Chengdu’s sci-fi industry plays in national development, adding that the city excels in reading, gaming and merchandise.

Another city worth noting is Shenzhen, which ranked first in terms of sci-fi integration capability. Over the years, the city’s substantial economic resources, robust innovation environment and talent attraction have laid a solid foundation for integrating various industries with sci-fi. Notably, in sci-fi infused technological innovation and urban construction, Shenzhen has demonstrated significant leadership.

San Feng, a sci-fi researcher and project leader of the report, explained to China.org.cn that after Beijing and Chengdu, the other eight cities in the top 10 features cities from the Yangtze River Delta and the Guangdong-Hong Kong-Macao Greater Bay Area, benefiting from unique geographical advantages and supportive policies that enhance their competitiveness and potential for sci-fi development. Cities like Shanghai, Nanjing and Hangzhou in the Yangtze River Delta are notable for their sci-fi content industry and leisure tourism, with significant advancements in sci-fi films and games. Meanwhile, the Guangdong-Hong Kong-Macao Greater Bay Area has shown strong growth in sci-fi animation, games and merchandise manufacturing.

Other cities’ sci-fi development has not yet achieved economies of scale. However, as national policies expand and regional economies develop synergistically, by leveraging local characteristics and resources, they can enhance sci-fi development, San said.

MIL-OSI China: Mainland official meets with Taiwan cultural circle personages in Beijing

Source: China State Council Information Office 3

A mainland Taiwan affairs official on Tuesday met with personages of Taiwan’s cultural circle who have traveled to Beijing to attend the first Cross-Strait Chinese Culture Summit.

Song Tao, head of both the Taiwan Work Office of the Communist Party of China Central Committee and the Taiwan Affairs Office of the State Council, met with personages including Liu Chao-Shiuan, chairman of the Foundation of Chinese Culture for Sustainable Development, ahead of the three-day summit which is set to open on Wednesday.

During the meeting, Song called for enhancing cultural exchange across the Taiwan Strait and joint efforts to promote Chinese culture.

He said that both sides of the Strait belong to one China, and that people on both sides share the Chinese culture.

Song voiced support for the cultural circle in Taiwan to counter “Taiwan independence in culture.”

He also called for closer bonds to be forged between compatriots from both sides of the Strait, and for confidence in Chinese culture to be solidified to build a more powerful source of inspiration, with the aim of realizing national rejuvenation and securing new successes in the development of Chinese culture on the journey toward national reunification.

Noting that Chinese culture is the most fundamental connection between the two sides of the Strait, Liu expressed the hope for deepening cultural exchange and mutual understanding, carrying forward the values and wisdom of Chinese culture, and enhancing the foundation for peaceful cross-Strait development.

MIL-OSI China: Hong Kong museum displays early Chinese photography collection

Source: China State Council Information Office 3

Over 500 photographs taken in the late Qing Dynasty (1644-1911) and early 20th century will be on display at the Hong Kong Museum of History from Wednesday, selected from over 24,000 photographs in a collection donated by the Moonchu Foundation on Tuesday.

The exhibits captured moments of major historical events such as the Second Opium War (1856-1860) and the First Sino-Japanese War (1894-1895), and provided records of the urban landscapes, historic buildings and people’s livelihood in those days. Most of the exhibits have never been publicly displayed before.

Highlights include a picture taken 180 years ago of Nam Van in Macao, which is one of the earliest photographs of China in existence today. Notable works like stereoscopic photos taken by American photographer James Ricalton in 1900 and landscape photographs taken by famous Chinese photographer Lai Fong are on display.

Exhibition goers can also find photos known as “Cartes de visite” in the size of a calling card, which were popular for exchanges in social gatherings during the 19th century.

The donation provides excellent materials for studying modern Chinese society and increasing the public’s understanding of Chinese history from a century ago, said Kevin Yeung, secretary for culture, sports and tourism of the Hong Kong Special Administrative Region (HKSAR) government when addressing Tuesday’s opening ceremony.

Established in 2007, Moonchu Foundation is dedicated to supporting culture and education-related research, publications and talks.

The exhibition is one of the events of the 4th Guangdong-Hong Kong-Macao Greater Bay Area Culture and Arts Festival. It will run through Feb. 3 next year.

MIL-OSI China: China’s self-developed LNG container vessel delivered

Source: China State Council Information Office 3

China’s self-developed liquefied natural gas (LNG) dual-fuel container vessel was delivered on Monday in northeast China’s port city of Dalian, according to Dalian Shipbuilding Industry Co., Ltd., its builder.

The vessel, built for the Mediterranean Shipping Company, measures 366 meters in length, 51 meters in molded breadth and 30.2 meters in molded depth, and has a design draft of 14.5 meters.

The vessel is capable of carrying 16,044 standard containers and 1,800 refrigerated containers, said the shipbuilder.

The dual-fuel design allows the vessel to be powered by LNG and marine fuel oils. Equipped with a 13,000-cubic-meter Type-B LNG fuel tank, it has a larger capacity and higher utilization rate than traditional LNG fuel tanks and consumes less traditional fuels.

The shipbuilder has applied other energy-saving measures and devices to improve the economic benefits and environmental protection performance of the vessel.

MIL-OSI China: Impressive progress made 40 years on from first Teachers’ Day

Source: People’s Republic of China – State Council News

China has made significant achievements in teacher development over the past 40 years since the country established Teachers’ Day in 1985, an education expert said.

Li Yongzhi, head of the Chinese National Academy of Educational Sciences, said the number of full-time teachers in China has doubled from approximately 9.32 million in 1985 to 18.92 million last year.

Educational qualifications have improved, too, with 78 percent of primary school teachers holding at least a bachelor’s degree last year, up 45 percentage points since 2012. For middle school teachers, the figure has reached 93 percent, an increase of 22 percentage points over the same period, Li said.

“A notable rise was seen in the number of senior teachers, including 28,125 appointed to senior positions in primary and secondary schools,” he said.

China’s teacher education system has evolved during the past decades, now comprising 226 normal (teaching) universities and nearly 600 related institutions.

Management reforms have further strengthened the teaching profession. The implementation of the Teacher Law in 1993 and recent government documents have created a robust framework for teacher management, contributing to a more equitable distribution of teaching resources across urban and rural areas, Li said.

An awarding system for teachers has been built, including titles of the “Most Beautiful Teacher”, “National Excellent Teacher”, and “National Model Teacher”.

Ten individuals and Beihang University’s electromagnetic compatibility teaching team were honored as the Most Beautiful Teachers of 2024 on the 40th Teachers’ Day in September.

Teacher compensation has also improved, with salaries for nine-year compulsory education teachers now matching local civil service averages.

Teachers have played a crucial role in the development of education, technology and talent cultivation in China, guiding the growth of 190 million primary and secondary school students.

“A large number of rural teachers are guarding the safety and growth of children in villages, playing a fundamental role in poverty alleviation and rural vitalization efforts,” Li said.

In addition, educators from higher education institutes have made a major contribution to the country’s high-level scientific innovation, with over 40 percent of academicians of the Chinese Academy of Sciences and the Chinese Academy of Engineering working at universities.

Lin Zhanxi, a professor from Fujian Agriculture and Forestry University in Fujian province, once received a globe map with every location that the juncao technology that he helped develop, marked on it as a gift from his students on a Teachers’ Day.

As a pioneer of juncao technology, a sustainable agricultural practice that involves cultivating mushroom grass along with edible fungi, Lin has dedicated years of hard work to conducting research in the toughest environments and promoting the technology where it is most needed.

Lin didn’t apply for a patent as the inventor of this technology because he thought it would be better to lower the barriers for poverty alleviation technology. He also simplified the technology to make it more accessible to ensure farmers can easily understand the method.

Last year, about two-thirds of the National Science and Technology Awards were led by university teachers, according to the Ministry of Education.

The new guideline on strengthening the construction of a high-quality professional teaching workforce has promised a strong foundation for advancing education in the new era, said Li, head of the educational science academy.

MIL-OSI: Form 8.3 – TRINITY EXPLORATION & PRODUCTION PLC

Source: GlobeNewswire (MIL-OSI)

FORM 8.3

PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY
A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE
Rule 8.3 of the Takeover Code (the “Code”)

1. KEY INFORMATION

(a) Full name of discloser:	VELAY FINANCIAL SERVICES LTD
(b) Owner or controller of interests and short positions disclosed, if different from 1(a): The naming of nominee or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named.	Not applicable
(c) Name of offeror/offeree in relation to whose relevant securities this form relates: Use a separate form for each offeror/offeree	TRINITY EXPLORATION & PRODUCTION PLC
(d) If an exempt fund manager connected with an offeror/offeree, state this and specify identity of offeror/offeree:	Not applicable
(e) Date position held/dealing undertaken: For an opening position disclosure, state the latest practicable date prior to the disclosure	21/10/2024
(f) In addition to the company in 1(c) above, is the discloser making disclosures in respect of any other party to the offer? If it is a cash offer or possible cash offer, state “N/A”	N/A

2. POSITIONS OF THE PERSON MAKING THE DISCLOSURE

If there are positions or rights to subscribe to disclose in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 2(a) or (b) (as appropriate) for each additional class of relevant security.

(a) Interests and short positions in the relevant securities of the offeror or offeree to which the disclosure relates following the dealing (if any)

Class of relevant security:	1p ordinary
	Interests		Short positions
	Number	%	Number	%
(1) Relevant securities owned and/or controlled:
(2) Cash-settled derivatives:	900 000	2.31
(3) Stock-settled derivatives (including options) and agreements to purchase/sell:
TOTAL:	900 000	2.31

All interests and all short positions should be disclosed.

Details of any open stock-settled derivative positions (including traded options), or agreements to purchase or sell relevant securities, should be given on a Supplemental Form 8 (Open Positions).

(b) Rights to subscribe for new securities (including directors’ and other employee options)

Class of relevant security in relation to which subscription right exists:
Details, including nature of the rights concerned and relevant percentages:

3. DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE

Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 3(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.

The currency of all prices and other monetary amounts should be stated.

(a) Purchases and sales

Class of relevant security	Purchase/sale	Number of securities	Price per unit

(b) Cash-settled derivative transactions

Class of relevant security	Product description e.g. CFD	Nature of dealing e.g. opening/closing a long/short position, increasing/reducing a long/short position	Number of reference securities	Price per unit
1p ordinary	Swap	Increasing long position	25 000	0.66066 GBP

(c) Stock-settled derivative transactions (including options)

(i) Writing, selling, purchasing or varying

Class of relevant security	Product description e.g. call option	Writing, purchasing, selling, varying etc.	Number of securities to which option relates	Exercise price per unit	Type e.g. American, European etc.	Expiry date	Option money paid/ received per unit

(ii) Exercise

Class of relevant security	Product description e.g. call option	Exercising/ exercised against	Number of securities	Exercise price per unit

(d) Other dealings (including subscribing for new securities)

Class of relevant security	Nature of dealing e.g. subscription, conversion	Details	Price per unit (if applicable)

4. OTHER INFORMATION

(a) Indemnity and other dealing arrangements

Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer:
Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state “none”

None

(b) Agreements, arrangements or understandings relating to options or derivatives

Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person relating to:
(i) the voting rights of any relevant securities under any option; or
(ii) the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced:
If there are no such agreements, arrangements or understandings, state “none”

None

(c) Attachments

Is a Supplemental Form 8 (Open Positions) attached?

NO

Date of disclosure:	22/10/2024
Contact name:	Arnaud STEPHANN
*Telephone number:**	00 41 22 707 42 70

Additional dealing in this security:

DATE	Buy/Sell	QTY	Price

Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service.

The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s disclosure requirements on +44 (0)20 7638 0129.

*If the discloser is a natural person, a telephone number does not need to be included, provided contact information has been provided to the Panel’s Market Surveillance Unit.

The Code can be viewed on the Panel’s website at http://www.thetakeoverpanel.org.uk.

MIL-OSI: Capital City Bank Group, Inc. Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

TALLAHASSEE, Fla., Oct. 22, 2024 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $13.1 million, or $0.78 per diluted share, for the third quarter of 2024 compared to $14.2 million, or $0.83 per diluted share, for the second quarter of 2024, and $12.7 million, or $0.74 per diluted share, for the third quarter of 2023.

QUARTER HIGHLIGHTS (3^rdQuarter 2024 versus 2^ndQuarter 2024)

Income Statement

Tax-equivalent net interest income totaled $40.3 million compared to $39.3 million for the prior quarter
- Net interest margin increased 10 basis points to 4.12% (earning asset yield up 7 basis points and total deposit cost down 3 basis points to 92 basis points)
Stable credit quality metrics and credit loss provision – net loan charge-offs were 19 basis points (annualized) of average loans – allowance coverage ratio increased to 1.11% at September 30, 2024
Noninterest income remained stable, decreasing $0.1 million, or 0.5%, and reflected a $0.4 million decline in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees
Noninterest expense increased $2.5 million, or 6.1%, due to increases in compensation (annual merit and health care) and other expenses (professional and processing). Other expense also included a $0.5 million expense related to a counterparty payment for our VISA Class B share swap

Balance Sheet

Loan balances decreased $33.2 million, or 1.2% (average), and declined $7.1 million, or 0.3% (end of period)
Deposit balances decreased by $69.0 million, or 1.9% (average), and decreased $29.5 million, or 0.8% (end of period), reflecting the seasonal decline in our public fund balances
Tangible book value per diluted share (non-GAAP financial measure) increased $0.91, or 4.2%

Commenting on the company’s results, William G. Smith, Jr., Capital City Bank Group Chairman, President, and CEO, said, “I am pleased with what we accomplished in the quarter to enhance shareowner value – 4.2% growth in tangible book value per share and a 9.5% increase in the dividend. Earnings for the quarter remained stable driven by margin expansion, stable credit, and core deposit growth. Looking ahead, I remain optimistic about our full year financial performance and beyond, driven by our balance sheet flexibility, revenue diversification, and focus on continuous improvement.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the third quarter of 2024 totaled $40.2 million, compared to $39.3 million for the second quarter of 2024, and $39.3 million for the third quarter of 2023. Compared to the second quarter of 2024, the increase was primarily due to increases in loan and investment interest income and a decrease in deposit interest expense, partially offset by a decrease in overnight funds interest income. One additional calendar day also contributed to the increase. Favorable repricing of existing adjustable/fixed rate loans at higher rates drove the increase in loan interest income. The increase in investment interest income was due to the reinvestment of maturing securities at higher rates. The decrease in deposit interest expense was attributable to lower average NOW account balances and average rate, in addition to lower rates on promotional deposit products.

Compared to the third quarter of 2023, the $0.9 million increase was primarily driven by an increase in loan interest income and to a lesser extent overnight funds interest income, partially offset by an increase in deposit interest expense. For the first nine months of 2024, tax-equivalent net interest income totaled $118.0 million compared to $120.1 million for the same period of 2023 with the decrease primarily attributable to an increase in deposit interest expense and a decrease in investment interest income, partially offset by an increase in loan interest income.

Our net interest margin for the third quarter of 2024 was 4.12%, an increase of 10 basis points over the second quarter of 2024 and an increase of nine basis points over the third quarter of 2023. For the month of September 2024, our net interest margin was 4.16%. For the first nine months of 2024, our net interest margin was 4.05% compared to 4.04% for the same period of 2023. The increase over the second quarter of 2024 reflected favorable loan and investment repricing, partially offset by a lower overnight funds rate. The increase over both prior year periods reflected higher loan rates partially offset by a higher cost of deposits. For the third quarter of 2024, our cost of funds was 93 basis points, a decrease of four basis points from the second quarter of 2024 and an increase of 27 basis points over the third quarter of 2023. Our cost of deposits (including noninterest bearing accounts) was 92 basis points, 95 basis points, and 58 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $1.2 million for the third quarter of 2024, comparable to the second quarter of 2024 and a $1.2 million decrease from the third quarter of 2023. The provision expense for the third quarter of 2024 reflected a $0.7 million increase in the provision for loans held for investment (“HFI”), a $0.6 million provision benefit for unfunded loan commitments, and a $0.1 million provision benefit for debt securities. The increase in the provision for loans HFI was primarily due to loan grade migration and slightly higher loss rates partially offset by lower loan balances. A lower level of commitments drove the provision benefit for unfunded loan commitments. For the first nine months of 2024, we recorded a provision expense for credit losses of $3.3 million compared to $7.7 million for the same period of 2023 with the decrease driven primarily by lower new loan volume in 2024. We discuss the allowance for credit losses further below.

Noninterest Income and Noninterest Expense

Noninterest income for the third quarter of 2024 totaled $19.5 million compared to $19.6 million for the second quarter of 2024 and $16.7 million for the third quarter of 2023. The slight decrease from the second quarter of 2024 reflected a $0.4 million decrease in mortgage banking revenues partially offset by a $0.3 million increase in wealth management fees. Compared to the third quarter of 2023, the $2.8 million increase was primarily attributable to a $2.1 million increase in mortgage banking revenues driven by a higher gain on sale margin, and a $0.8 million increase in wealth management fees.

For the first nine months of 2024, noninterest income totaled $57.2 million compared to $54.5 million for the same period of 2023, primarily attributable to a $3.2 million increase in mortgage banking revenues and a $1.8 million increase in wealth management fees, partially offset by a $2.1 million decrease in other income. The increase in mortgage banking revenues was due to a higher gain on sale margin. The increase in wealth management fees was primarily driven by higher retail brokerage fees and to a lesser extent trust fees, primarily attributable to both new account growth and higher account values driven by higher market returns. The decrease in other income was primarily attributable to a $1.4 million gain from the sale of mortgage servicing rights in the second quarter of 2023, and to a lesser extent a decrease in vendor bonus income and miscellaneous income.

Noninterest expense for the third quarter of 2024 totaled $42.9 million compared to $40.4 million for the second quarter of 2024 and $39.1 million for the third quarter of 2023. The $2.5 million increase over the second quarter of 2024 was primarily due to a $1.4 million increase in compensation and a $1.0 million increase in other expense. The increase in compensation reflected higher salary expense of $0.9 million and associate benefit expense of $0.5 million. The increase in salary expense was driven by annual merit adjustments, and the increase in other associate benefit expense was primarily attributable to higher health insurance cost, and to a lesser extent higher stock-based compensation expense. The increase in other expense was primarily due to a $0.5 million increase in professional fees, processing fees of $0.3 million, and higher miscellaneous expense which included a $0.5 million payment to the counterparty for our VISA Class B share swap due to revision to the share conversion rate related to additional funding by VISA of the merchant litigation reserve. Compared to the third quarter of 2023, the $3.8 million increase was primarily attributable to a $2.8 million increase in compensation expense and a $0.9 million increase in other expense. The unfavorable variance in compensation expense reflected higher salary expense of $2.2 million and associate benefit expense of $0.6 million, with the salary variance driven by merit adjustments and the associate benefit expense variance reflective of higher health insurance cost. Further, salary expense was unfavorably impacted by lower realized loan cost (credit offset to salary expense) of $1.0 million which reflected lower loan volume in 2024. The increase in other expense was attributable to a $0.6 million increase in professional fees and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in the third quarter of 2024.

For the first nine months of 2024, noninterest expense totaled $123.5 million compared to $117.1 million for the same period of 2023 with the $6.4 million increase primarily attributable to increases in compensation expense of $4.6 million, occupancy expense of $0.5 million, and other expense of $1.3 million. The increase in compensation expense reflected a $3.9 million increase in salary expense and a $0.7 million increase in associate benefit expense. The increase in salary expense was primarily due to a lower level of realized loan cost (credit offset to salary expense) of $2.9 million (lower new loan volume) and higher base salary expense of $1.9 million (primarily annual merit raises), partially offset by lower commission expense of $1.3 million (lower residential mortgage volume). The increase in occupancy was primarily attributable to an increase in maintenance agreement expense (security upgrades and addition of interactive teller machines). The increase in other expense reflected a $1.8 million gain from the sale of a banking office in the first quarter of 2023 and higher miscellaneous expense due to the aforementioned $0.5 million share swap payment in 2024, that was partially offset by lower pension plan expense (service cost) of $1.0 million.

Income Taxes

We realized income tax expense of $3.0 million (effective rate of 19.1%) for the third quarter of 2024 compared to $3.2 million (effective rate of 18.5%) for the second quarter of 2024 and $3.0 million (effective rate of 20.7%) for the third quarter of 2023. For the first nine months of 2024, we realized income tax expense of $9.7 million (effective rate of 20.1%) compared to $10.1 million (effective rate of 20.5%) for the same period of 2023. The decrease in our effective tax rate from both prior year periods was primarily due to a higher level of tax benefit accrued from investments in solar tax credit equity funds. Absent discrete items, we expect our annual effective tax rate to approximate 20-21% for 2024.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $3.883 billion for the third quarter of 2024, a decrease of $51.9 million, or 1.3%, from the second quarter of 2024, and an increase of $59.4 million, or 1.6%, over the fourth quarter of 2023. The change for both prior periods was driven by variances in deposit balances (see below – Deposits). Compared to the second quarter of 2024, the change in the earning asset mix reflected a $33.2 million decrease in loans HFI, a $11.4 million decline in investment securities, and a $5.6 million decrease increase in overnight funds sold. Compared to the fourth quarter of 2023, the change in the earning asset mix reflected a $157.1 million increase in overnight funds that was partially offset by a $17.7 million decrease in loans HFI, a $54.7 million decrease in investment securities and a $25.2 million decline in loans held for sale.

Average loans HFI decreased $33.2 million, or 1.2%, from the second quarter of 2024 and decreased $17.7 million, or 0.7%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was driven by a $19.4 million decrease in consumer loans (primarily indirect auto), commercial loans of $13.2 million, and commercial real estate loans of $7.7 million, partially offset by a $7.4 million increase in residential real estate loans. Compared to the fourth quarter of 2023, the decrease was primarily attributable to a $54.5 million decrease in consumer loans (primarily indirect auto) and commercial loans of $24.2 million (primarily tax-exempt loans) that was partially offset by a $59.2 million increase in residential real estate loans.

Period end loans HFI decreased $7.1 million, or 0.3%, from the second quarter of 2024 and decreased $50.8 million, or 1.9%, from the fourth quarter of 2023. Compared to the second quarter of 2024, the decline reflected a $20.9 million decrease in consumer loans (primarily indirect auto), a $10.4 million decrease in commercial loans, and a $3.2 million decline in commercial real estate loans, partially offset by a $10.9 million increase in residential real estate loans and a $18.1 million increase in construction loans. The decrease from the fourth quarter of 2023 was primarily attributable to a $57.7 million decrease in consumer loans (primarily indirect auto), a $30.6 million decline in commercial loans, and a $5.5 million decrease in commercial real estate loans, partially offset by a $22.2 million increase in residential real estate loans and a $22.8 million increase in construction real estate loans.

Allowance for Credit Losses

At September 30, 2024, the allowance for credit losses for loans HFI totaled $29.8 million compared to $29.2 million at June 30, 2024 and $29.9 million at December 31, 2023. Activity within the allowance is provided on Page 9. The increase in the allowance over June 30, 2024 was primarily attributable to slightly higher forecasted unemployment rate utilized in calculating loan loss rates and loan grade migration (see above – Provision for Credit Losses). Net loan charge-offs were 19 basis points of average loans for the third quarter of 2024 versus 18 basis points for the second quarter of 2024. At September 30, 2024, the allowance represented 1.11% of loans HFI compared to 1.09% at June 30, 2024, and 1.10% at December 31, 2023.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $7.2 million at September 30, 2024 compared to $6.2 million at June 30, 2024 and $6.2 million at December 31, 2023. At September 30, 2024, nonperforming assets as a percent of total assets equaled 0.17%, compared to 0.15% at June 30, 2024 and 0.15% at December 31, 2023. Nonaccrual loans totaled $6.6 million at September 30, 2024, a $1.1 million increase over June 30, 2024 and a $0.3 million increase over December 31, 2023. Further, classified loans totaled $25.5 million at September 30, 2024, a $0.1 million decrease from June 30, 2024 and a $3.3 million increase over December 31, 2023.

Deposits

Average total deposits were $3.572 billion for the third quarter of 2024, a decrease of $69.0 million, or 1.9%, from the second quarter of 2024 and an increase of $23.5 million, or 0.7%, over the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease was primarily attributable to lower NOW account balances primarily due to the seasonal decline in our public fund balances. The increase over the fourth quarter of 2023 reflected growth in both money market and certificate of deposit balances which reflected a combination of balances migrating from savings and noninterest bearing accounts, in addition to receiving new deposits from existing and new clients via various deposit strategies.

At September 30, 2024, total deposits were $3.579 billion, a decrease of $29.5 million, or 0.8%, from June 30, 2024, and a decrease of $122.7 million, or 3.3%, from December 31, 2023. The decrease from June 30, 2024 was primarily due to lower noninterest bearing, money market, and savings account balances. The decrease from December 31, 2023 was primarily due to lower NOW account balances, primarily due to the seasonal decline in our public funds, partially offset by higher money market and certificate of deposit balances from both new and existing clients. Total public funds balances were $516.2 million at September 30, 2024, $575.0 million at June 30, 2024, and $709.8 million at December 31, 2023.

Liquidity

The Bank maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $256.9 million in the third quarter of 2024 compared to $262.4 million in the second quarter of 2024 and $99.8 million in the fourth quarter of 2023. Compared to the second quarter of 2024, the decrease reflected lower average deposits (primarily seasonal public funds) that was substantially offset by a decline in average loans. Compared to the fourth quarter of 2023, the increase was primarily driven by higher average deposits and lower average investments.

At September 30, 2024, we had the ability to generate approximately $1.522 billion (excludes overnight funds position of $262 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

We also view our investment portfolio as a liquidity source as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits, and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At September 30, 2024, the weighted-average maturity and duration of our portfolio were 2.51 years and 2.17 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $15.5 million.

Capital

Shareowners’ equity was $476.5 million at September 30, 2024 compared to $461.0 million at June 30, 2024 and $440.6 million at December 31, 2023. For the first nine months of 2024, shareowners’ equity was positively impacted by net income attributable to shareowners of $39.8 million, a $8.7 million decrease in the net unrealized loss on available for sale securities, net adjustments totaling $0.9 million related to transactions under our stock compensation plans, and stock compensation accretion of $1.1 million. Shareowners’ equity was reduced by a common stock dividend of $11.0 million ($0.65 per share), the repurchase of common stock of $2.3 million (82,540 shares), a $0.6 million increase in the fair value of the interest rate swap related to subordinated debt, and a $0.7 million reclassification to temporary equity.

At September 30, 2024, our total risk-based capital ratio was 17.97% compared to 17.50% at June 30, 2024 and 16.57% at December 31, 2023. Our common equity tier 1 capital ratio was 14.88%, 14.44%, and 13.52%, respectively, on these dates. Our leverage ratio was 10.89%, 10.51%, and 10.30%, respectively, on these dates. At September 30, 2024, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 9.28% at September 30, 2024 compared to 8.91% and 8.26% at June 30, 2024 and December 31, 2023, respectively. If our unrealized held-to-maturity securities losses of $12.9 million (after-tax) were recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.00%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.2 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 63 banking offices and 105 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit http://www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: our ability to successfully manage credit risk, interest rate risk, liquidity risk, and other risks inherent to our industry; the effects of changes in the level of checking or savings account deposits and the competition for deposits on our funding costs, net interest margin and ability to replace maturing deposits and advances; legislative or regulatory changes; adverse developments in the financial services industry; inflation, interest rate, market and monetary fluctuations; uncertainty in the pricing of residential mortgage loans that we sell, as well as competition for the mortgage servicing rights related to these loans; interest rate risk and price risk resulting from retaining mortgage servicing rights and the effects of higher interest rates on our loan origination volumes; changes in monetary and fiscal policies of the U.S. Government; the cost and effects of cybersecurity incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; the effects of fraud related to debit card products; the accuracy of our financial statement estimates and assumptions; changes in accounting principles, policies, practices or guidelines; the frequency and magnitude of foreclosure of our loans; the effects of our lack of a diversified loan portfolio; the strength of the local economies in which we operate; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; our ability to retain key personnel; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest or other geopolitical events; our ability to comply with the extensive laws and regulations to which we are subject; the impact of the restatement of our previously issued consolidated statements of cash flows; any deficiencies in the processes undertaken to effect these restatements and to identify and correct all errors in our historical financial statements that may require restatement; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control or inability to remediate our existing material weaknesses in our internal controls deemed ineffective; the willingness of clients to accept third-party products and services rather than our products and services; technological changes; the outcomes of litigation or regulatory proceedings; negative publicity and the impact on our reputation; changes in consumer spending and saving habits; growth and profitability of our noninterest income; the limited trading activity of our common stock; the concentration of ownership of our common stock; anti-takeover provisions under federal and state law as well as our Articles of Incorporation and our Bylaws; other risks described from time to time in our filings with the Securities and Exchange Commission; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as amended, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

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

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023
Shareowners’ Equity (GAAP)		$	476,499	$	460,999	$	448,314	$	440,625	$	419,706
Less: Goodwill and Other Intangibles (GAAP)			92,813		92,853		92,893		92,933		92,973
Tangible Shareowners’ Equity (non-GAAP)	A		383,686		368,146		355,421		347,692		326,733
Total Assets (GAAP)			4,225,316		4,225,695		4,259,922		4,304,477		4,138,287
Less: Goodwill and Other Intangibles (GAAP)			92,813		92,853		92,893		92,933		92,973
Tangible Assets (non-GAAP)	B	$	4,132,503	$	4,132,842	$	4,167,029	$	4,211,544	$	4,045,314
Tangible Common Equity Ratio (non-GAAP)	A/B		9.28%		8.91%		8.53%		8.26%		8.08%
Actual Diluted Shares Outstanding (GAAP)	C		16,980,686		16,970,228		16,947,204		17,000,758		16,997,886
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	22.60	$	21.69	$	20.97	$	20.45	$	19.22

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

		Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)		Sep 30, 2024		Jun 30, 2024		Sep 30, 2023		Sep 30, 2024		Sep 30, 2023
EARNINGS
Net Income Attributable to Common Shareowners	$	13,118	$	14,150	$	12,655	$	39,825	$	40,539
Diluted Net Income Per Share	$	0.78	$	0.83	$	0.74	$	2.35	$	2.38
PERFORMANCE
Return on Average Assets (annualized)		1.24	%	1.33	%	1.19	%	1.26	%	1.26	%
Return on Average Equity (annualized)		10.87		12.23		11.74		11.39		13.00
Net Interest Margin		4.12		4.02		4.03		4.05		4.04
Noninterest Income as % of Operating Revenue		32.67		33.30		29.87		32.69		31.25
Efficiency Ratio		71.81	%	68.61	%	69.88	%	70.49	%	67.07	%
CAPITAL ADEQUACY
Tier 1 Capital		16.77	%	16.31	%	15.11	%	16.77	%	15.11	%
Total Capital		17.97		17.50		16.30		17.97		16.30
Leverage		10.89		10.51		9.98		10.89		9.98
Common Equity Tier 1		14.88		14.44		13.26		14.88		13.26
Tangible Common Equity ⁽¹⁾		9.28		8.91		8.08		9.28		8.08
Equity to Assets		11.28	%	10.91	%	10.14	%	11.28	%	10.14	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		452.64	%	529.79	%	619.58	%	452.64	%	619.58	%
Allowance as a % of Loans HFI		1.11		1.09		1.08		1.11		1.08
Net Charge-Offs as % of Average Loans HFI		0.19		0.18		0.17		0.20		0.16
Nonperforming Assets as % of Loans HFI and OREO		0.27		0.23		0.17		0.27		0.17
Nonperforming Assets as % of Total Assets		0.17	%	0.15	%	0.11	%	0.17	%	0.11	%
STOCK PERFORMANCE
High	$	36.67	$	28.58	$	33.44	$	36.67	$	36.86
Low		26.72		25.45		28.64		25.45		28.03
Close	$	35.29	$	28.44	$	29.83	$	35.29	$	29.83
Average Daily Trading Volume		37,151		29,861		26,774		32,720		33,936

⁽¹⁾ Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6.

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

	2024										2023
(Dollars in thousands)	Third Quarter				Second Quarter			First Quarter			Fourth Quarter			Third Quarter
ASSETS
Cash and Due From Banks	$	83,431		$	75,304		$	73,642		$	83,118		$	72,379
Funds Sold and Interest Bearing Deposits		261,779			272,675			231,047			228,949			95,119
Total Cash and Cash Equivalents		345,210			347,979			304,689			312,067			167,498

Investment Securities Available for Sale		336,187			310,941			327,338			337,902			334,052
Investment Securities Held to Maturity		561,480			582,984			603,386			625,022			632,076
Other Equity Securities		6,976			2,537			3,445			3,450			3,585
Total Investment Securities		904,643			896,462			934,169			966,374			969,713

Loans Held for Sale		31,251			24,022			24,705			28,211			34,013

Loans Held for Investment (“HFI”):
Commercial, Financial, & Agricultural		194,625			204,990			218,298			225,190			221,704
Real Estate – Construction		218,899			200,754			202,692			196,091			197,526
Real Estate – Commercial		819,955			823,122			823,690			825,456			828,234
Real Estate – Residential		1,023,485			1,012,541			1,012,791			1,001,257			966,512
Real Estate – Home Equity		210,988			211,126			214,617			210,920			203,606
Consumer		213,305			234,212			254,168			270,994			285,122
Other Loans		461			2,286			3,789			2,962			1,401
Overdrafts		1,378			1,192			1,127			1,048			1,076
Total Loans Held for Investment		2,683,096			2,690,223			2,731,172			2,733,918			2,705,181
Allowance for Credit Losses		(29,836	)		(29,219	)		(29,329	)		(29,941	)		(29,083	)
Loans Held for Investment, Net		2,653,260			2,661,004			2,701,843			2,703,977			2,676,098

Premises and Equipment, Net		81,876			81,414			81,452			81,266			81,677
Goodwill and Other Intangibles		92,813			92,853			92,893			92,933			92,973
Other Real Estate Owned		650			650			1			1			1
Other Assets		115,613			121,311			120,170			119,648			116,314
Total Other Assets		290,952			296,228			294,516			293,848			290,965
Total Assets	$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477		$	4,138,287
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,330,715		$	1,343,606		$	1,361,939		$	1,377,934		$	1,472,165
NOW Accounts		1,174,585			1,177,180			1,212,452			1,327,420			1,092,996
Money Market Accounts		401,272			413,594			398,308			319,319			304,323
Savings Accounts		507,604			514,560			530,782			547,634			571,003
Certificates of Deposit		164,901			159,624			151,320			129,515			99,958
Total Deposits		3,579,077			3,608,564			3,654,801			3,701,822			3,540,445

Repurchase Agreements		29,339			22,463			23,477			26,957			22,910
Other Short-Term Borrowings		7,929			3,307			8,409			8,384			18,786
Subordinated Notes Payable		52,887			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		794			1,009			265			315			364
Other Liabilities		71,974			69,987			65,181			66,080			75,585
Total Liabilities		3,742,000			3,758,217			3,805,020			3,856,445			3,710,977

Temporary Equity		6,817			6,479			6,588			7,407			7,604
SHAREOWNERS’ EQUITY
Common Stock		169			169			169			170			170
Additional Paid-In Capital		36,070			35,547			34,861			36,326			36,182
Retained Earnings		454,342			445,959			435,364			426,275			418,030
Accumulated Other Comprehensive Loss, Net of Tax		(14,082	)		(20,676	)		(22,080	)		(22,146	)		(34,676	)
Total Shareowners’ Equity		476,499			460,999			448,314			440,625			419,706
Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,225,316		$	4,225,695		$	4,259,922		$	4,304,477		$	4,138,287
OTHER BALANCE SHEET DATA
Earning Assets	$	3,880,769		$	3,883,382		$	3,921,093		$	3,957,452		$	3,804,026
Interest Bearing Liabilities		2,339,311			2,344,624			2,377,900			2,412,431			2,163,227
Book Value Per Diluted Share	$	28.06		$	27.17		$	26.45		$	25.92		$	24.69
Tangible Book Value Per Diluted Share⁽¹⁾		22.60			21.69			20.97			20.45			19.22
Actual Basic Shares Outstanding		16,944			16,942			16,929			16,950			16,958
Actual Diluted Shares Outstanding		16,981			16,970			16,947			17,001			16,998
⁽¹⁾ Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 6.

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

		2024						2023				Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Third Quarter		Second Quarter		First Quarter		Fourth Quarter		Third Quarter		2024		2023
INTEREST INCOME
Loans, including Fees	$	41,659	$	41,138	$	40,683	$	40,407	$	39,344	$	123,480	$	111,845
Investment Securities		4,155		4,004		4,244		4,392		4,561		12,403		14,300
Federal Funds Sold and Interest Bearing Deposits		3,514		3,624		1,893		1,385		1,848		9,031		8,741
Total Interest Income		49,328		48,766		46,820		46,184		45,753		144,914		134,886
INTEREST EXPENSE
Deposits		8,223		8,579		7,594		5,872		5,214		24,396		11,710
Repurchase Agreements		221		217		201		199		190		639		314
Other Short-Term Borrowings		52		68		39		310		440		159		1,228
Subordinated Notes Payable		610		630		628		627		625		1,868		1,800
Other Long-Term Borrowings		11		3		3		5		4		17		15
Total Interest Expense		9,117		9,497		8,465		7,013		6,473		27,079		15,067
Net Interest Income		40,211		39,269		38,355		39,171		39,280		117,835		119,819
Provision for Credit Losses		1,206		1,204		920		2,025		2,393		3,330		7,689
Net Interest Income after Provision for Credit Losses		39,005		38,065		37,435		37,146		36,887		114,505		112,130
NONINTEREST INCOME
Deposit Fees		5,512		5,377		5,250		5,304		5,456		16,139		16,021
Bank Card Fees		3,624		3,766		3,620		3,713		3,684		11,010		11,205
Wealth Management Fees		4,770		4,439		4,682		4,276		3,984		13,891		12,061
Mortgage Banking Revenues		3,966		4,381		2,878		2,327		1,839		11,225		8,072
Other		1,641		1,643		1,667		1,537		1,765		4,951		7,093
Total Noninterest Income		19,513		19,606		18,097		17,157		16,728		57,216		54,452
NONINTEREST EXPENSE
Compensation		25,800		24,406		24,407		23,822		23,003		74,613		69,965
Occupancy, Net		7,098		6,997		6,994		7,098		6,980		21,089		20,562
Other		10,023		9,038		8,770		9,038		9,122		27,831		26,539
Total Noninterest Expense		42,921		40,441		40,171		39,958		39,105		123,533		117,066
OPERATING PROFIT		15,597		17,230		15,361		14,345		14,510		48,188		49,516
Income Tax Expense		2,980		3,189		3,536		2,909		3,004		9,705		10,130
Net Income		12,617		14,041		11,825		11,436		11,506		38,483		39,386
Pre-Tax Loss Attributable to Noncontrolling Interest		501		109		732		284		1,149		1,342		1,153
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	13,118	$	14,150	$	12,557	$	11,720	$	12,655	$	39,825	$	40,539
PER COMMON SHARE
Basic Net Income	$	0.77	$	0.84	$	0.74	$	0.69	$	0.75	$	2.35	$	2.38
Diluted Net Income		0.78		0.83		0.74		0.70		0.74		2.35		2.38
Cash Dividend	$	0.23	$	0.21	$	0.21	$	0.20	$	0.20	$	0.65	$	0.56
AVERAGE SHARES
Basic		16,943		16,931		16,951		16,947		16,985		16,942		17,001
Diluted		16,979		16,960		16,969		16,997		17,025		16,966		17,031

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

		2024								2023					Nine Months Ended September 30,
(Dollars in thousands, except per share data)		Third Quarter			Second Quarter		First Quarter			Fourth Quarter			Third Quarter		2024			2023
ACL – HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,219		$	29,329	$	29,941		$	29,083		$	28,243	$	29,941		$	25,068
Transfer from Other (Assets) Liabilities		–			–		(50	)		66			–		(50	)		–
Provision for Credit Losses		1,879			1,129		932			2,354			1,993		3,940			7,175
Net Charge-Offs (Recoveries)		1,262			1,239		1,494			1,562			1,153		3,995			3,160
Balance at End of Period	$	29,836		$	29,219	$	29,329		$	29,941		$	29,083	$	29,836		$	29,083
As a % of Loans HFI		1.11%			1.09%		1.07%			1.10%			1.08%		1.11%			1.08%
As a % of Nonperforming Loans		452.64%			529.79%		431.46%			479.70%			619.58%		452.64%			619.58%
ACL – UNFUNDED COMMITMENTS
Balance at Beginning of Period		3,139		$	3,121	$	3,191		$	3,502		$	3,120	$	3,191		$	2,989
Provision for Credit Losses		(617	)		18		(70	)		(311	)		382		(669	)		513
Balance at End of Period⁽¹⁾		2,522			3,139		3,121			3,191			3,502		2,522			3,502
ACL – DEBT SECURITIES
Provision for Credit Losses	$	(56	)	$	57	$	58		$	(18	)	$	18	$	59		$	1
CHARGE-OFFS
Commercial, Financial and Agricultural	$	331		$	400	$	282		$	217		$	76	$	1,013		$	294
Real Estate – Construction		–			–		–			–			–		–			–
Real Estate – Commercial		3			–		–			–			–		3			120
Real Estate – Residential		–			–		17			79			–		17			–
Real Estate – Home Equity		23			–		76			–			–		99			39
Consumer		1,315			1,061		1,550			1,689			1,340		3,926			4,065
Overdrafts		611			571		638			602			659		1,820			2,187
Total Charge-Offs	$	2,283		$	2,032	$	2,563		$	2,587		$	2,075	$	6,878		$	6,705
RECOVERIES
Commercial, Financial and Agricultural	$	176		$	59	$	41		$	83		$	28	$	276		$	194
Real Estate – Construction		–			–		–			–			–		–			2
Real Estate – Commercial		5			19		204			16			17		228			36
Real Estate – Residential		88			23		37			34			30		148			219
Real Estate – Home Equity		59			37		24			17			53		120			209
Consumer		405			313		410			433			418		1,128			1,503
Overdrafts		288			342		353			442			376		983			1,382
Total Recoveries	$	1,021		$	793	$	1,069		$	1,025		$	922	$	2,883		$	3,545
NET CHARGE-OFFS (RECOVERIES)	$	1,262		$	1,239	$	1,494		$	1,562		$	1,153	$	3,995		$	3,160
Net Charge-Offs as a % of Average Loans HFI⁽²⁾		0.19%			0.18%		0.22%			0.23%			0.17%		0.20%			0.16%
CREDIT QUALITY
Nonaccruing Loans	$	6,592		$	5,515	$	6,798		$	6,242		$	4,694
Other Real Estate Owned		650			650		1			1			1
Total Nonperforming Assets (“NPAs”)	$	7,242		$	6,165	$	6,799		$	6,243		$	4,695

Past Due Loans 30-89 Days	$	9,388		$	5,672	$	5,392		$	6,855		$	5,577
Classified Loans		25,501			25,566		22,305			22,203			21,812

Nonperforming Loans as a % of Loans HFI		0.25%			0.21%		0.25%			0.23%			0.17%
NPAs as a % of Loans HFI and Other Real Estate		0.27%			0.23%		0.25%			0.23%			0.17%
NPAs as a % of Total Assets		0.17%			0.15%		0.16%			0.15%			0.11%

⁽¹⁾Recorded in other liabilities
⁽²⁾Annualized

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

		Third Quarter 2024							Second Quarter 2024							First Quarter 2024							Fourth Quarter 2023							Third Quarter 2023							Sep 2024 YTD							Sep 2023 YTD
(Dollars in thousands)		Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate
ASSETS:
Loans Held for Sale	$	24,570		$	720	7.49	%	$	26,281		$	517	5.26	%	$	27,314		$	563	5.99	%	$	49,790			817	6.50	%	$	62,768		$	971	6.14	%	$	26,050		$	1,800	6.22	%	$	57,438		$	2,416	5.62	%
Loans Held for Investment⁽¹⁾		2,693,533			40,985	6.09			2,726,748			40,683	6.03			2,728,629			40,196	5.95			2,711,243			39,679	5.81			2,672,653			38,455	5.71			2,716,220			121,864	6.02			2,637,911			109,688	5.56

Investment Securities
Taxable Investment Securities		907,610			4,148	1.82			918,989			3,998	1.74			952,328			4,239	1.78			962,322			4,389	1.81			1,002,547			4,549	1.80			926,241			12,385	1.78			1,034,825			14,265	1.84
Tax-Exempt Investment Securities⁽¹⁾		846			10	4.33			843			9	4.36			856			9	4.34			862			7	4.32			2,456			17	2.66			848			28	4.34			2,649			50	2.49

Total Investment Securities		908,456			4,158	1.82			919,832			4,007	1.74			953,184			4,248	1.78			963,184			4,396	1.82			1,005,003			4,566	1.81			927,089			12,413	1.78			1,037,474			14,315	1.84

Federal Funds Sold and Interest Bearing Deposits		256,855			3,514	5.44			262,419			3,624	5.56			140,488			1,893	5.42			99,763			1,385	5.51			136,556			1,848	5.37			220,056			9,031	5.48			237,987			8,741	4.91

Total Earning Assets		3,883,414		$	49,377	5.06	%		3,935,280		$	48,831	4.99	%		3,849,615		$	46,900	4.90	%		3,823,980		$	46,277	4.80	%		3,876,980		$	45,840	4.69	%		3,889,415		$	145,108	4.98	%		3,970,810		$	135,160	4.55	%

Cash and Due From Banks		70,994							74,803							75,763							76,681							75,941							73,843							75,483
Allowance for Credit Losses		(29,905	)						(29,564	)						(30,030	)						(29,998	)						(29,172	)						(29,833	)						(27,581	)
Other Assets		291,359							291,669							295,275							296,114							295,106							292,762							297,688

Total Assets	$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,218,855						$	4,226,187						$	4,316,400

LIABILITIES:
Noninterest Bearing Deposits	$	1,332,305						$	1,346,546						$	1,344,188						$	1,416,825						$	1,474,574						$	1,340,981						$	1,538,268
NOW Accounts		1,145,544		$	4,087	1.42	%		1,207,643		$	4,425	1.47	%		1,201,032		$	4,497	1.51	%		1,138,461		$	3,696	1.29	%		1,125,171		$	3,489	1.23	%		1,184,596		$	13,009	1.47	%		1,184,453		$	8,679	0.98	%
Money Market Accounts		418,625			2,694	2.56			407,387			2,752	2.72			353,591			1,985	2.26			318,844			1,421	1.77			322,623			1,294	1.59			393,294			7,431	2.52			293,089			2,249	1.03
Savings Accounts		512,098			180	0.14			519,374			176	0.14			539,374			188	0.14			557,579			202	0.14			579,245			200	0.14			523,573			544	0.14			603,643			396	0.09
Time Deposits		163,462			1,262	3.07			160,078			1,226	3.08			138,328			924	2.69			116,797			553	1.88			95,203			231	0.96			153,991			3,412	2.96			90,970			386	0.57
Total Interest Bearing Deposits		2,239,729			8,223	1.46			2,294,482			8,579	1.50			2,232,325			7,594	1.37			2,131,681			5,872	1.09			2,122,242			5,214	0.97			2,255,454			24,396	1.44			2,172,155			11,710	0.72
Total Deposits		3,572,034			8,223	0.92			3,641,028			8,579	0.95			3,576,513			7,594	0.85			3,548,506			5,872	0.66			3,596,816			5,214	0.58			3,596,435			24,396	0.91			3,710,423			11,710	0.42
Repurchase Agreements		27,126			221	3.24			26,999			217	3.24			25,725			201	3.14			26,831			199	2.94			25,356			190	2.98			26,619			639	3.21			17,588			314	2.39
Other Short-Term Borrowings		2,673			52	7.63			6,592			68	4.16			3,758			39	4.16			16,906			310	7.29			24,306			440	7.17			4,334			159	4.88			26,586			1,228	6.17
Subordinated Notes Payable		52,887			610	4.52			52,887			630	4.71			52,887			628	4.70			52,887			627	4.64			52,887			625	4.62			52,887			1,868	4.64			52,887			1,800	4.49
Other Long-Term Borrowings		795			11	5.55			258			3	4.31			281			3	4.80			336			5	4.72			387			4	4.73			447			17	5.16			433			15	4.78
Total Interest Bearing Liabilities		2,323,210		$	9,117	1.56	%		2,381,218		$	9,497	1.60	%		2,314,976		$	8,465	1.47	%		2,228,641		$	7,013	1.25	%		2,225,178		$	6,473	1.15	%		2,339,741		$	27,079	1.55	%		2,269,649		$	15,067	0.89	%

Other Liabilities		73,767							72,634							68,295							78,772							83,099							71,574							82,877

Total Liabilities		3,729,282							3,800,398							3,727,459							3,724,238							3,782,851							3,752,296							3,890,794
Temporary Equity		6,443							6,493							7,150							7,423							8,424							6,694							8,719

SHAREOWNERS’ EQUITY:		480,137							465,297							456,014							435,116							427,580							467,197							416,887

Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,215,862						$	4,272,188						$	4,190,623						$	4,166,777						$	4,218,855						$	4,226,187						$	4,316,400

Interest Rate Spread				$	40,260	3.49	%				$	39,334	3.38	%				$	38,435	3.43	%				$	39,264	3.55	%				$	39,367	3.54	%				$	118,029	3.43	%				$	120,093	3.66	%

Interest Income and Rate Earned⁽¹⁾					49,377	5.06						48,831	4.99						46,900	4.90						46,277	4.80						45,840	4.69						145,108	4.98						135,160	4.55
Interest Expense and Rate Paid⁽²⁾					9,117	0.93						9,497	0.97						8,465	0.88						7,013	0.73						6,473	0.66						27,079	0.93						15,067	0.51

Net Interest Margin				$	40,260	4.12	%				$	39,334	4.02	%				$	38,435	4.01	%				$	39,264	4.07	%				$	39,367	4.03	%				$	118,029	4.05	%				$	120,093	4.04	%

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

For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402. 8450

MIL-OSI: Dime Community Bancshares, Inc. Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Acceleration in Core Deposit Growth Drives Increase in Quarterly Net Interest Margin to 2.50%

Balance Sheet Well Positioned to Benefit From Federal Reserve Rate Cuts

HAUPPAUGE, N.Y., Oct. 22, 2024 (GLOBE NEWSWIRE) — Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $11.5 million for the quarter ended September 30, 2024, or $0.29 per diluted common share, compared to $16.7 million, or $0.43 per diluted common share, for the quarter ended June 30, 2024, and $13.2 million, or $0.34 per diluted common share for the quarter ended September 30, 2023.

Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Strong growth in low-cost core deposits drove a significant linked quarter expansion in the Net Interest Margin. Importantly, following the recent 50 basis point reduction in the Federal Funds rate, we lowered deposit costs and expect to benefit from these actions in the fourth quarter and beyond. Since the Federal Reserve rate cut in mid-September, the spread between the weighted average rate on loans and core deposits has improved by approximately 15 basis points. We anticipate the full quarter impact of this spread improvement to drive continued Net Interest Margin expansion in the fourth quarter.”

Mr. Lubow commented, “During the third quarter, our Business loan portfolio increased by over $120 million and we continue to have strong pipelines in our Middle Market and Healthcare verticals. Compared to the prior quarter, the level of net charge-offs and criticized and classified loans remained stable and we continued to prudently build our allowance for credit losses to total loans and risk-based capital levels. In conclusion, I am extremely proud of our employees for their unwavering focus on our customers and enabling us to be the premier business bank on Greater Long Island.”

Highlights for the Third Quarter of 2024 Included:

Total deposits increased $389 million compared to the second quarter of 2024;
Core deposits (excluding brokered and time deposits) increased $505 million compared to the second quarter of 2024;
The ratio of average non-interest-bearing deposits to average total deposits for the third quarter was 29% compared to 28% for the second quarter of 2024;
The cost of total deposits declined by 4 basis point versus the prior quarter;
The net interest margin increased to 2.50% for the third quarter of 2024 compared to 2.41% for the prior quarter;
The loan to deposit ratio declined to 95.4% at the end of the third quarter compared to 98.2% for the prior quarter;
Net charge-offs to average loans was 0.15% for the third quarter of 2024 compared to 0.14% for prior quarter;
The allowance for credit losses to total loans increased to 0.78% at the end of the third quarter compared to 0.72% for the prior quarter; and
The Company’s total risk based capital ratio increased to 14.76% at the end of the third quarter compared to 14.46% for the prior quarter.

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the third quarter of 2024 was $79.9 million compared to $75.5 million for the second quarter of 2024 and $76.5 million for the third quarter of 2023.

The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.


(Dollars in thousands)	Q3 2024				Q2 2024				Q3 2023
Net interest income	$	79,924			$	75,502			$	76,479
Purchase accounting amortization (accretion) on loans (“PAA”)		(266	)			(101	)			186
Adjusted net interest income excluding PAA on loans (non-GAAP)	$	79,658			$	75,401			$	76,665

Average interest-earning assets	$	12,734,246			$	12,624,556			$	12,984,061

NIM ⁽¹⁾		2.50		%		2.41		%		2.34	%
Adjusted NIM excluding PAA on loans (non-GAAP) ⁽²⁾		2.49		%		2.40		%		2.34	%

⁽¹⁾NIM represents net interest income divided by average interest-earning assets.
⁽²⁾Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.

During the quarter ended June 30, 2024, there was a recovery of interest income from a loan that was previously on non-accrual status in the amount of $1.3 million. Excluding the impact of this item, the second quarter NIM was 2.37%.

Loan Portfolio

The ending WAR on the total loan portfolio was 5.40% at September 30, 2024, a 1 basis point increase compared to the ending WAR of 5.39% on the total loan portfolio at June 30, 2024.

Outlined below are loan balances and WARs for the quarter ended as indicated.


	September 30, 2024				June 30, 2024				September 30, 2023
(Dollars in thousands)	Balance		WAR ⁽¹⁾		Balance		WAR ⁽¹⁾		Balance		WAR ⁽¹⁾
Loans held for investment balances at period end:
Business loans ⁽²⁾	$	2,653,624	6.82	%	$	2,530,896	6.92	%	$	2,271,768	6.72	%
One-to-four family residential, including condominium and cooperative apartment		934,209	4.65			906,949	4.55			892,869	4.39
Multifamily residential and residential mixed-use ⁽³⁾⁽⁴⁾		3,866,931	4.60			3,920,354	4.59			4,102,024	4.45
Non-owner-occupied commercial real estate		3,281,923	5.25			3,315,100	5.25			3,374,281	5.09
Acquisition, development, and construction		149,299	8.46			144,860	8.96			203,402	8.92
Other loans		6,058	10.71			6,699	3.39			6,267	6.28
Loans held for investment	$	10,892,044	5.40	%	$	10,824,858	5.39	%	$	10,850,611	5.20	%

⁽¹⁾ WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.
⁽²⁾ Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.
⁽³⁾ Includes loans underlying multifamily cooperatives.
⁽⁴⁾ While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations, for the quarter ended as indicated.


(Dollars in millions)	Q3 2024		Q2 2024		Q3 2023
Loan originations	$	122.7	$	162.4	$	153.4

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at September 30, 2024 were $11.42 billion, compared to $11.03 billion at June 30, 2024 and $10.53 billion at December 31, 2023.

Total Federal Home Loan Bank advances were $508.0 million at September 30, 2024 compared to $633.0 million at June 30, 2024 and $1.31 billion at December 31, 2023.

Mr. Lubow commented, “During the third quarter of 2024, we continued our strategy of utilizing core deposit growth to reduce our wholesale funding position.”

Non-Interest Income

Non-interest income was $7.6 million during the third quarter of 2024, $11.8 million during the second quarter of 2024, and $7.9 million during the third quarter of 2023. Included in non-interest income for the second quarter of 2024, was income related to the sale of premises of approximately $3.7 million.

Non-Interest Expense

Total non-interest expense was $57.7 million during the third quarter of 2024, $55.7 million during the second quarter of 2024, and $59.5 million during the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, adjusted non-interest expense was $57.4 million during the third quarter of 2024, $55.4 million during the second quarter of 2024, and $50.6 million during the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Mr. Lubow commented, “As we have communicated previously, the increase in non-interest expense has been due to the significant investments and hires in the Private and Commercial Bank and the Middle Market C&I Lending operations. Third quarter results reflected a fully-loaded run-rate for these initiatives and we expect to keep our expense base relatively flat in the fourth quarter of 2024.”

The ratio of non-interest expense to average assets was 1.71% during the third quarter of 2024, compared to 1.66% during the linked quarter and 1.73% for the third quarter of 2023. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets and severance expense, the ratio of adjusted non-interest expense to average assets was 1.70% during the third quarter of 2024, compared to 1.65% during the linked quarter and 1.48% for the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 65.9% during the third quarter of 2024, compared to 63.8% during the linked quarter and 70.5% during the third quarter of 2023. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 65.6% during the third quarter of 2024, compared to 65.9% during the linked quarter and 59.7% during the third quarter of 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for the third quarter of 2024 was 26.9% compared to 29.0% for the second quarter of 2024, and 35.1% for the third quarter of 2023.

Credit Quality

Non-performing loans were $49.5 million at September 30, 2024, compared to $24.8 million for the prior quarter.

A credit loss provision of $11.6 million was recorded during the third quarter of 2024, compared to a credit loss provision of $5.6 million during the second quarter of 2024, and a credit loss provision of $1.8 million during the third quarter of 2023.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of September 30, 2024. All risk-based regulatory capital ratios increased in the third quarter of 2024.

Dividends per common share were $0.25 during the third and second quarters of 2024, respectively.

Book value per common share was $29.31 at September 30, 2024 compared to $28.97 at June 30, 2024.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.22 at September 30, 2024 compared to $24.87 at June 30, 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 9:00 a.m. (ET) on Tuesday, October 22, 2024, during which CEO Lubow will discuss the Company’s third quarter 2024 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/hfnjf6ym. To participate via telephone, please register in advance using this link: https://register.vevent.com/register/BI017781a02def49c0ad228b72ba201600. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/hfnjf6ym.

ABOUT DIME COMMUNITY BANCSHARES, INC.
Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.7 billion in assets and the number one deposit market share among community banks on Greater Long Island⁽¹⁾.

⁽¹⁾ Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may be identified by use of words such as “annualized,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contact: Avinash Reddy
Senior Executive Vice President – Chief Financial Officer
718-782-6200 extension 5909

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands)

	September 30,			June 30,			December 31,
	2024			2024			2023
Assets:
Cash and due from banks	$	626,056		$	413,983		$	457,547
Securities available-for-sale, at fair value		774,608			819,222			886,240
Securities held-to-maturity		592,414			588,000			594,639
Loans held for sale		13,098			14,766			10,159
Loans held for investment, net:
Business loans ⁽¹⁾		2,653,624			2,530,896			2,310,379
One-to-four family and cooperative/condominium apartment		934,209			906,949			889,236
Multifamily residential and residential mixed-use ⁽²⁾⁽³⁾		3,866,931			3,920,354			4,017,703
Non-owner-occupied commercial real estate		3,281,923			3,315,100			3,381,842
Acquisition, development and construction		149,299			144,860			168,513
Other loans		6,058			6,699			5,755
Allowance for credit losses		(85,221	)		(77,812	)		(71,743	)
Total loans held for investment, net		10,806,823			10,747,046			10,701,685
Premises and fixed assets, net		35,066			36,054			44,868
Premises held for sale		—			—			905
Restricted stock		64,235			68,445			98,750
Bank Owned Life Insurance (“BOLI”)		372,367			354,761			349,816
Goodwill		155,797			155,797			155,797
Other intangible assets		4,181			4,467			5,059
Operating lease assets		48,537			51,703			52,729
Derivative assets		105,636			134,489			122,132
Accrued interest receivable		54,578			55,588			55,666
Other assets		93,133			104,442			100,013
Total assets	$	13,746,529		$	13,548,763		$	13,636,005
Liabilities:
Non-interest-bearing checking (excluding mortgage escrow deposits)	$	3,231,160		$	3,012,481		$	2,884,378
Interest-bearing checking		938,070			633,721			515,987
Savings (excluding mortgage escrow deposits)		1,845,266			2,340,222			2,335,354
Money market		3,898,509			3,607,090			3,125,996
Certificates of deposit		1,416,467			1,382,271			1,607,683
Deposits (excluding mortgage escrow deposits)		11,329,472			10,975,785			10,469,398
Non-interest-bearing mortgage escrow deposits		87,841			52,647			61,121
Interest-bearing mortgage escrow deposits		5			2			136
Total mortgage escrow deposits		87,846			52,649			61,257
FHLBNY advances		508,000			633,000			1,313,000
Subordinated debt, net		272,300			262,814			200,196
Derivative cash collateral		68,960			130,090			108,100
Operating lease liabilities		51,362			54,530			55,454
Derivative liabilities		98,108			122,567			121,265
Other liabilities		66,552			66,732			81,110
Total liabilities		12,482,600			12,298,167			12,409,780
Stockholders’ equity:
Preferred stock, Series A		116,569			116,569			116,569
Common stock		416			416			416
Additional paid-in capital		488,607			488,760			494,454
Retained earnings		827,690			826,080			813,007
Accumulated other comprehensive loss (“AOCI”), net of deferred taxes		(72,970	)		(82,780	)		(91,579	)
Unearned equity awards		(10,111	)		(12,023	)		(8,622	)
Treasury stock, at cost		(86,272	)		(86,426	)		(98,020	)
Total stockholders’ equity		1,263,929			1,250,596			1,226,225
Total liabilities and stockholders’ equity	$	13,746,529		$	13,548,763		$	13,636,005

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program (“PPP”) loans.
⁽²⁾ Includes loans underlying multifamily cooperatives.

⁽³⁾ While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands except share and per share amounts)

	Three Months Ended								Nine Months Ended
	September 30,		June 30,			September 30,			September 30,			September 30,
	2024		2024			2023			2024			2023
Interest income:
Loans	$	151,828	$	147,099		$	142,995		$	442,492		$	409,744
Securities		7,766		7,907			7,916			23,553			24,261
Other short-term investments		4,645		4,412			6,930			18,621			16,599
Total interest income		164,239		159,418			157,841			484,666			450,604
Interest expense:
Deposits and escrow		74,025		72,878			62,507			219,972			152,395
Borrowed funds		8,764		9,033			16,925			32,494			50,855
Derivative cash collateral		1,526		2,005			1,930			5,244			4,904
Total interest expense		84,315		83,916			81,362			257,710			208,154
Net interest income		79,924		75,502			76,479			226,956			242,450
Provision (recovery) for credit losses		11,603		5,585			1,806			22,398			(950	)
Net interest income after provision (recovery)		68,321		69,917			74,673			204,558			243,400
Non-interest income:
Service charges and other fees		4,267		3,972			3,963			12,783			12,633
Title fees		190		294			291			617			829
Loan level derivative income		132		1,085			783			1,623			6,353
BOLI income		2,606		2,484			2,317			7,551			7,332
Gain on sale of Small Business Administration (“SBA”) loans		19		113			335			385			1,061
Gain on sale of residential loans		38		27			21			142			103
Fair value change in equity securities and loans held for sale		39		(416	)		(299	)		(1,219	)		(1,079	)
Net loss on sale of securities		—		—			—			—			(1,447	)
Gain (loss) on sale of other assets		2		3,695			(22	)		6,665			(22	)
Other		338		554			539			1,359			1,571
Total non-interest income		7,631		11,808			7,928			29,906			27,334
Non-interest expense:
Salaries and employee benefits		36,132		32,184			30,520			100,353			87,054
Severance		—		—			8,562			42			9,068
Occupancy and equipment		7,448		7,409			7,277			22,225			21,794
Data processing costs		4,544		4,405			4,309			13,262			12,744
Marketing		1,629		1,637			2,079			4,763			5,016
Professional services		2,036		2,766			1,277			6,269			4,876
Federal deposit insurance premiums		2,105		2,250			1,866			6,594			5,613
Loss on extinguishment of debt		1		—			—			454			—
Amortization of other intangible assets		286		285			349			878			1,075
Other		3,548		4,758			3,284			11,094			11,944
Total non-interest expense		57,729		55,694			59,523			165,934			159,184
Income before taxes		18,223		26,031			23,078			68,530			111,550
Income tax expense		4,896		7,552			8,093			19,033			31,764
Net income		13,327		18,479			14,985			49,497			79,786
Preferred stock dividends		1,822		1,822			1,822			5,465			5,465
Net income available to common stockholders	$	11,505	$	16,657		$	13,163		$	44,032		$	74,321
Earnings per common share (“EPS”):
Basic	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92
Diluted	$	0.29	$	0.43		$	0.34		$	1.13		$	1.92

Average common shares outstanding for diluted EPS		38,366,619		38,329,485			38,203,961			38,317,223			38,177,704

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SELECTED FINANCIAL HIGHLIGHTS (Dollars in thousands except per share amounts)

	At or For the Three Months Ended									At or For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Per Share Data:
Reported EPS (Diluted)	$	0.29		$	0.43		$	0.34		$	1.13		$	1.92
Cash dividends paid per common share		0.25			0.25			0.25			0.75			0.74
Book value per common share		29.31			28.97			28.03			29.31			28.03
Tangible common book value per share ⁽¹⁾		25.22			24.87			23.87			25.22			23.87
Common shares outstanding		39,152			39,148			38,811			39,152			38,811
Dividend payout ratio		86.21	%		58.14	%		73.53	%		66.37	%		38.54	%

Performance Ratios (Based upon Reported Net Income):
Return on average assets		0.39	%		0.55	%		0.44	%		0.49	%		0.78	%
Return on average equity		4.19			5.88			4.91			5.24			8.78
Return on average tangible common equity ⁽¹⁾		4.70			6.88			5.69			6.06			10.73
Net interest margin		2.50			2.41			2.34			2.37			2.52
Non-interest expense to average assets		1.71			1.66			1.73			1.63			1.56
Efficiency ratio		65.9			63.8			70.5			64.6			59.0
Effective tax rate		26.87			29.01			35.07			27.77			28.48

Balance Sheet Data:
Average assets	$	13,502,753		$	13,418,441		$	13,759,493		$	13,571,710		$	13,623,570
Average interest-earning assets		12,734,246			12,624,556			12,984,061			12,791,233			12,853,701
Average tangible common equity ⁽¹⁾		996,578			979,611			943,805			981,614			933,072
Loan-to-deposit ratio at end of period ⁽²⁾		95.4			98.2			102.0			95.4			102.0

Capital Ratios and Reserves – Consolidated: ⁽³⁾
Tangible common equity to tangible assets ⁽¹⁾		7.27	%		7.27	%		6.87	%
Tangible equity to tangible assets ⁽¹⁾		8.13			8.14			7.73
Tier 1 common equity ratio		10.16			10.06			9.67
Tier 1 risk-based capital ratio		11.28			11.17			10.76
Total risk-based capital ratio		14.76			14.46			13.33
Tier 1 leverage ratio		8.76			8.78			8.38
Consolidated CRE concentration ratio ⁽⁴⁾		487			499			547
Allowance for credit losses/ Total loans		0.78			0.72			0.67
Allowance for credit losses/ Non-performing loans		172.29			313.21			311.16

⁽¹⁾ See “Non-GAAP Reconciliation” tables for reconciliation of tangible equity, tangible common equity, and tangible assets.
⁽²⁾ Total deposits include mortgage escrow deposits, which fluctuate seasonally.
⁽³⁾ September 30, 2024 ratios are preliminary pending completion and filing of the Company’s regulatory reports.

⁽⁴⁾The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The September 30, 2024 ratio is preliminary pending completion and filing of the Company’s regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME (Dollars in thousands)

	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
					Average						Average						Average
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Interest-earning assets:
Business loans ⁽¹⁾	$	2,609,934	$	46,656	7.11	%	$	2,400,219	$	42,933	7.19	%	$	2,260,203	$	38,384	6.74	%
One-to-four family residential, including condo and coop		924,150		11,024	4.75			886,037		9,968	4.52			879,688		9,165	4.13
Multifamily residential and residential mixed-use		3,902,220		45,790	4.67			3,958,617		45,775	4.65			4,114,476		46,099	4.45
Non-owner-occupied commercial real estate		3,297,760		44,804	5.40			3,359,004		44,728	5.36			3,382,927		44,184	5.18
Acquisition, development, and construction		147,875		3,505	9.43			164,283		3,638	8.91			222,039		5,075	9.07
Other loans		4,891		49	3.99			5,100		57	4.50			6,156		88	5.67
Securities		1,493,492		7,766	2.07			1,537,487		7,907	2.07			1,619,960		7,916	1.94
Other short-term investments		353,924		4,645	5.22			313,809		4,412	5.65			498,612		6,930	5.51
Total interest-earning assets		12,734,246		164,239	5.13	%		12,624,556		159,418	5.08	%		12,984,061		157,841	4.82	%
Non-interest-earning assets		768,507						793,885						775,432
Total assets	$	13,502,753					$	13,418,441					$	13,759,493

Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking ⁽²⁾	$	798,024	$	4,635	2.31	%	$	631,403	$	1,499	0.95	%	$	786,892	$	2,896	1.46	%
Money market		3,771,562		36,841	3.89			3,495,989		33,193	3.82			2,975,267		24,275	3.24
Savings ⁽²⁾		2,102,282		19,492	3.69			2,336,202		23,109	3.98			2,342,424		20,316	3.44
Certificates of deposit		1,232,984		13,057	4.21			1,393,678		15,077	4.35			1,494,491		15,020	3.99
Total interest-bearing deposits		7,904,852		74,025	3.73			7,857,272		72,878	3.73			7,599,074		62,507	3.26
FHLBNY advances		528,652		4,455	3.35			671,242		6,429	3.85			1,250,717		14,370	4.56
Subordinated debt, net		271,450		4,307	6.31			202,232		2,604	5.18			200,232		2,553	5.06
Other short-term borrowings		131		2	6.07			—		—	—			120		2	6.61
Total borrowings		800,233		8,764	4.36			873,474		9,033	4.16			1,451,069		16,925	4.63
Derivative cash collateral		91,305		1,526	6.65			145,702		2,005	5.53			156,795		1,930	4.88
Total interest-bearing liabilities		8,796,390		84,315	3.81	%		8,876,448		83,916	3.80	%		9,206,938		81,362	3.51	%
Non-interest-bearing checking ⁽²⁾		3,209,502						3,042,382						3,065,186
Other non-interest-bearing liabilities		223,546						242,980						265,559
Total liabilities		12,229,438						12,161,810						12,537,683
Stockholders’ equity		1,273,315						1,256,631						1,221,810
Total liabilities and stockholders’ equity	$	13,502,753					$	13,418,441					$	13,759,493
Net interest income			$	79,924					$	75,502					$	76,479
Net interest rate spread					1.32	%					1.28	%					1.31	%
Net interest margin					2.50	%					2.41	%					2.34	%
Deposits (including non-interest-bearing checking accounts) ⁽²⁾	$	11,114,354	$	74,025	2.65	%	$	10,899,654	$	72,878	2.69	%	$	10,664,260	$	62,507	2.33	%

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
⁽²⁾ Includes mortgage escrow deposits.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS (Dollars in thousands)

	At or For the Three Months Ended
	September 30,			June 30,			September 30,
Asset Quality Detail	2024			2024			2023
Non-performing loans (“NPLs”)
Business loans ⁽¹⁾	$	25,411		$	20,287		$	19,555
One-to-four family residential, including condominium and cooperative apartment		3,880			3,884			2,874
Multifamily residential and residential mixed-use		—			—			—
Non-owner-occupied commercial real estate		19,509			15			15
Acquisition, development, and construction		657			657			657
Other loans		6			—			219
Total Non-accrual loans	$	49,463		$	24,843		$	23,320
Total Non-performing assets (“NPAs”)	$	49,463		$	24,843		$	23,320

Total loans 90 days delinquent and accruing (“90+ Delinquent”)	$	—		$	—		$	—

NPAs and 90+ Delinquent	$	49,463		$	24,843		$	23,320

NPAs and 90+ Delinquent / Total assets		0.36	%		0.18	%		0.17	%
Net charge-offs (“NCOs”)	$	4,199		$	3,640		$	4,864
NCOs / Average loans ⁽²⁾		0.15	%		0.14	%		0.18	%

⁽¹⁾ Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
⁽²⁾ Calculated based on annualized NCOs to average loans, excluding loans held for sale.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION
(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles (“GAAP”) (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net (gain) loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:


	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income available to common stockholders	$	11,505			$	16,657			$	13,163			$	44,032			$	74,321
Adjustments to net income ^(1):
Fair value change in equity securities and loans held for sale		(39	)			416				299				1,219				1,079
Net (gain) loss on sale of securities and other assets		(2	)			(3,695	)			22				(6,665	)			1,469
Severance		—				—				8,562				42				9,068
Loss on extinguishment of debt		1				—				—				454				—
Income tax effect of adjustments		13				1,043				(176	)			1,574				(985	)
Adjusted net income available to common stockholders (non-GAAP)	$	11,478			$	14,421			$	21,870			$	40,656			$	84,952

Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)
Adjusted EPS (Diluted)	$	0.29			$	0.37			$	0.56			$	1.04			$	2.19
Adjusted return on average assets		0.39		%		0.48		%		0.69		%		0.45		%		0.88		%
Adjusted return on average equity		4.18				5.17				7.76				4.89				9.95
Adjusted return on average tangible common equity		4.69				5.97				9.38				5.60				12.25
Adjusted non-interest expense to average assets		1.70				1.65				1.48				1.62				1.46
Adjusted efficiency ratio		65.6				65.9				59.7				65.5				54.7

⁽¹⁾ Adjustments to net income are taxed at the Company’s approximate statutory tax rate.

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):


	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Operating expense as a % of average assets – as reported	1.71		%	1.66		%	1.73		%	1.63		%	1.56		%
Loss on extinguishment of debt	—			—			—			—			—
Severance	—			—			(0.25	)		—			(0.09	)
Amortization of other intangible assets	(0.01	)		(0.01	)		—			(0.01	)		(0.01	)
Adjusted operating expense as a % of average assets (non-GAAP)	1.70		%	1.65		%	1.48		%	1.62		%	1.46		%

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):


	Three Months Ended												Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
	2024				2024				2023				2024				2023
Efficiency ratio – as reported (non-GAAP) ⁽¹⁾		65.9		%		63.8		%		70.5		%		64.6		%		59.0		%
Non-interest expense – as reported	$	57,729			$	55,694			$	59,523			$	165,934			$	159,184
Severance		—				—				(8,562	)			(42	)			(9,068	)
Loss on extinguishment of debt		(1	)			—				—				(454	)			—
Amortization of other intangible assets		(286	)			(285	)			(349	)			(878	)			(1,075	)
Adjusted non-interest expense (non-GAAP)	$	57,442			$	55,409			$	50,612			$	164,560			$	149,041
Net interest income – as reported	$	79,924			$	75,502			$	76,479			$	226,956			$	242,450
Non-interest income – as reported	$	7,631			$	11,808			$	7,928			$	29,906			$	27,334
Fair value change in equity securities and loans held for sale		(39	)			416				299				1,219				1,079
Net (gain) loss on sale of securities and other assets		(2	)			(3,695	)			22				(6,665	)			1,469
Adjusted non-interest income (non-GAAP)	$	7,590			$	8,529			$	8,249			$	24,460			$	29,882
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)	$	87,514			$	84,031			$	84,728			$	251,416			$	272,332
Adjusted efficiency ratio (non-GAAP) ⁽²⁾		65.6		%		65.9		%		59.7		%		65.5		%		54.7		%

⁽¹⁾The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
⁽²⁾The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):


	September 30,				June 30,				September 30,
	2024				2024				2023
Reconciliation of Tangible Assets:
Total assets	$	13,746,529			$	13,548,763			$	13,651,405
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible assets (non-GAAP)	$	13,586,551			$	13,388,499			$	13,490,199

Reconciliation of Tangible Common Equity – Consolidated:
Total stockholders’ equity	$	1,263,929			$	1,250,596			$	1,204,344
Goodwill		(155,797	)			(155,797	)			(155,797	)
Other intangible assets		(4,181	)			(4,467	)			(5,409	)
Tangible equity (non-GAAP)		1,103,951				1,090,332				1,043,138
Preferred stock, net		(116,569	)			(116,569	)			(116,569	)
Tangible common equity (non-GAAP)	$	987,382			$	973,763			$	926,569

Common shares outstanding		39,152				39,148				38,811

Tangible common equity to tangible assets (non-GAAP)		7.27		%		7.27		%		6.87		%
Tangible equity to tangible assets (non-GAAP)		8.13				8.14				7.73

Book value per common share	$	29.31			$	28.97			$	28.03
Tangible common book value per share (non-GAAP)		25.22				24.87				23.87

MIL-OSI: Old National Bancorp Reports Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

EVANSVILLE, Ind., Oct. 22, 2024 (GLOBE NEWSWIRE) —

Old National Bancorp (NASDAQ: ONB) reports 3Q24 net income applicable to common shares of $139.8 million, diluted EPS of $0.44; $147.2 million and $0.46 on an adjusted¹basis, respectively.

CEO COMMENTARY:

“Old National’s strong 3rd quarter was driven by a focus on our fundamentals: continuing to grow deposits and loans, effectively managing both credit and capital, and creating positive operating leverage through disciplined expense management,” said Chairman and CEO Jim Ryan. “As a result of our ability to execute on this fundamental strategy, we find ourselves well positioned to continue to invest in new markets while attracting exceptional talent to our franchise.”

THIRD QUARTER HIGHLIGHTS²:

Net Income	Net income applicable to common shares of $139.8 million; adjusted net income applicable to common shares¹ of $147.2 million
Net Income	Earnings per diluted common share (“EPS”) of $0.44; adjusted EPS¹ of $0.46

Net Interest Income/NIM	Net interest income on a fully taxable equivalent basis¹ of $397.9 million
Net Interest Income/NIM	Net interest margin on a fully taxable equivalent basis¹ (“NIM”) of 3.32%, down 1 basis point (“bp”)

Operating Performance	Pre-provision net revenue¹ (“PPNR”) of $219.7 million; adjusted PPNR¹ of $229.3 million
	Noninterest expense of $272.3 million; adjusted noninterest expense¹ of $262.8 million
	Efficiency ratio¹ of 53.8%; adjusted efficiency ratio¹ of 51.2%

Deposits and Funding	Period-end total deposits of $40.8 billion, up $0.8 billion; core deposits up $1.0 billion
Deposits and Funding	Granular low-cost deposit franchise; total deposit costs of 225 bps

Loans and Credit Quality	End-of-period total loans³ of $36.5 billion, up 2.7% annualized
	Provision for credit losses⁴ (“provision”) of $28.5 million
	Net charge-offs of $17.5 million, or 19 bps of average loans; 16 bps excluding purchased credit deteriorated (“PCD”) loans that had an allowance at acquisition
	30+ day delinquencies of 0.26% and non-performing loans of 1.22% of total loans

Return Profile & Capital	Return on average tangible common equity¹ of 16.0%; adjusted return on average tangible common equity¹ of 16.8%
Return Profile & Capital	Tangible common equity to tangible assets¹ of 7.4%, up 7.2%

Notable Items	$6.9 million of pre-tax merger-related charges $2.6 million of pre-tax separation expense⁵

¹Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release ²Comparisons are on a linked-quarter basis, unless otherwise noted ³Includes loans held-for-sale ⁴Includes the provision for unfunded commitments ⁵Expense associated with a mutual separation agreement with a former Old National executive

RESULTS OF OPERATIONS²
Old National Bancorp (“Old National”) reported third quarter 2024 net income applicable to common shares of $139.8 million, or $0.44 per diluted common share.

Included in third quarter results were pre-tax charges of $6.9 million primarily related to the April 1, 2024 acquisition of CapStar Financial Holdings, Inc. (“CapStar”) and $2.6 million of pre-tax separation expense⁵. Excluding these transactions and realized debt securities gains from the current quarter, adjusted net income¹ was $147.2 million, or $0.46 per diluted common share.

DEPOSITS AND FUNDING
Growth in deposits driven by increases in commercial and community deposits and normal seasonal patterns in public funds, partially offset by lower brokered deposits.

Period-end total deposits were $40.8 billion, up 8.5% annualized; core deposits up 10.1% annualized.
On average, total deposits for the third quarter were $40.6 billion, up 4.8% annualized.
Granular low-cost deposit franchise; total deposit costs of 225 bps.
A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

LOANS
Broad-based disciplined commercial loan growth.

Period-end total loans³ were $36.5 billion, up 2.7% annualized.
Total commercial loan production in the third quarter was $1.7 billion; period-end commercial pipeline totaled $2.8 billion.
Average total loans in the third quarter were $36.3 billion, an increase of $235.9 million.

CREDIT QUALITY
Resilient credit quality continues to be a hallmark of Old National.

Provision⁴ expense was $28.5 million compared to $36.2 million, or $20.9 million excluding $15.3 million of current expected credit loss (“CECL”) Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans in the CapStar transaction in the second quarter of 2024.
Net charge-offs were $17.5 million, or 19 bps of average loans compared to net charge-offs of 16 bps of average loans.
- Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 16 bps.
30+ day delinquencies as a percentage of loans were 0.26% compared to 0.16%.
Nonaccrual loans as a percentage of total loans were 1.22% compared to 0.94%.
Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $174.0 million.
The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $405.9 million, or 1.12% of total loans, compared to $392.1 million, or 1.08% of total loans.

NET INTEREST INCOME AND MARGIN
Higher net interest income and stable margin reflective of the rate environment.

Net interest income on a fully taxable equivalent basis¹ increased to $397.9 million compared to $394.8 million, driven by loan growth as well as higher asset yields and accretion, partly offset by higher funding costs.
Net interest margin on a fully taxable equivalent basis¹ modestly decreased 1 bps to 3.32%.
Accretion income on loans and borrowings was $15.6 million, or 13 bps of net interest margin¹, compared to $11.6 million, or 10 bps of net interest margin¹.
Cost of total deposits was 2.25%, increasing 9 bps and the cost of total interest-bearing deposits increased 9 bps to 2.93%.

NONINTEREST INCOME
Increase driven by higher service charges, mortgage fees, capital markets income, and other income.

Total noninterest income was $94.1 million compared to $87.3 million.
Noninterest income was up 7.9% driven by higher service charges, mortgage fees, capital markets income, and other income.

NONINTEREST EXPENSE
Disciplined expense management.

Noninterest expense was $272.3 million and included $6.9 million of merger-related charges and $2.6 million of pre-tax separation expense⁵.
- Excluding these items, adjusted noninterest expense¹ was $262.8 million, compared to $263.6 million.
The efficiency ratio¹ was 53.8%, while the adjusted efficiency ratio¹ was 51.2% compared to 57.2% and 52.6%, respectively.

INCOME TAXES

Income tax expense was $41.3 million, resulting in an effective tax rate of 22.3% compared to 22.5%. On an adjusted fully taxable equivalent (“FTE”) basis, the effective tax rate was 24.8% compared to 25.5%.
Income tax expense included $4.0 million of tax credit benefit compared to $3.5 million.

CAPITAL
Capital ratios remain strong.

Preliminary total risk-based capital up 23 bps to 12.94% and preliminary regulatory Tier 1 capital up 27 bps to 11.60%, as strong retained earnings drive capital.
Tangible common equity to tangible assets was 7.44% compared to 6.94%.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, October 22, 2024, to review third quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 1586600. A replay of the call will also be available from approximately noon Central Time on October 22, 2024 through November 5, 2024. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 1586600.

ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $31 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.

USE OF NON-GAAP FINANCIAL MEASURES
The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company’s operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.

The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, separation expense, debt securities gains/losses, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, FDIC special assessment expense, gain on sale of Visa Class B restricted shares, contract termination charges, expenses related to the tragic April 10, 2023 event at our downtown Louisville location (“Louisville expenses”), and property optimization charges. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company’s underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company’s underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, FDIC special assessment expense, contract termination charges, Louisville expenses, and property optimization charges, as well as adjusted noninterest income, which excludes debt securities gains/losses and the gain on sale of Visa Class B restricted shares. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management’s view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company’s use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from stockholders’ equity and retain the effect of accumulated other comprehensive loss in stockholders’ equity.

Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the “Non-GAAP Reconciliations” section for details on the calculation of these measures to the extent presented herein.

FORWARD-LOOKING STATEMENTS
This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “should,” “would,” and “will,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the expected cost savings, synergies and other financial benefits from the merger (the “Merger”) between Old National and CapStar Financial Holdings, Inc. not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses and the success of revenue-generating and cost reduction initiatives; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; political and economic uncertainty and instability; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2023 and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

CONTACTS:
Media: Kathy Schoettlin		Investors: Lynell Durchholz
(812) 465-7269		(812) 464-1366
Kathy.Schoettlin@oldnational.com		Lynell.Durchholz@oldnational.com


Financial Highlights (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Income Statement
Net interest income	$	391,724		$	388,421		$	356,458		$	364,408		$	375,086		$	1,136,603		$	1,138,745
FTE adjustment^1,3		6,144			6,340			6,253			6,100			5,837			18,737			17,328
Net interest income – tax equivalent basis³		397,868			394,761			362,711			370,508			380,923			1,155,340			1,156,073
Provision for credit losses		28,497			36,214			18,891			11,595			19,068			83,602			47,292
Noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Noninterest expense		272,283			282,999			262,317			284,235			244,776			817,599			742,071
Net income available to common shareholders	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411
Per Common Share Data
Weighted average diluted shares		317,331			316,461			292,207			292,029			291,717			308,605			291,809
EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49		$	1.21		$	1.50
Cash dividends		0.14			0.14			0.14			0.14			0.14			0.42			0.42
Dividend payout ratio²		32	%		38	%		35	%		32	%		29	%		35	%		28	%
Book value	$	19.20		$	18.28		$	18.24		$	18.18		$	17.07		$	19.20		$	17.07
Stock price		18.66			17.19			17.41			16.89			14.54			18.66			14.54
Tangible book value³		11.97			11.05			11.10			11.00			9.87			11.97			9.87
Performance Ratios
ROAA		1.08	%		0.92	%		0.98	%		1.09	%		1.22	%		0.99	%		1.25	%
ROAE		9.4	%		8.2	%		8.7	%		10.2	%		11.4	%		8.8	%		11.7	%
ROATCE³		16.0	%		14.1	%		14.9	%		18.1	%		20.2	%		15.0	%		20.8	%
NIM (FTE)		3.32	%		3.33	%		3.28	%		3.39	%		3.49	%		3.31	%		3.59	%
Efficiency ratio³		53.8	%		57.2	%		58.3	%		59.0	%		51.7	%		56.4	%		51.9	%
NCOs to average loans		0.19	%		0.16	%		0.14	%		0.12	%		0.24	%		0.16	%		0.19	%
ACL on loans to EOP loans		1.05	%		1.01	%		0.95	%		0.93	%		0.93	%		1.05	%		0.93	%
ACL⁴ to EOP loans		1.12	%		1.08	%		1.03	%		1.03	%		1.03	%		1.12	%		1.03	%
NPLs to EOP loans		1.22	%		0.94	%		0.98	%		0.83	%		0.80	%		1.22	%		0.80	%
Balance Sheet (EOP)
Total loans	$	36,400,643		$	36,150,513		$	33,623,319		$	32,991,927		$	32,577,834		$	36,400,643		$	32,577,834
Total assets		53,602,293			53,119,645			49,534,918			49,089,836			49,059,448			53,602,293			49,059,448
Total deposits		40,845,746			39,999,228			37,699,418			37,235,180			37,252,676			40,845,746			37,252,676
Total borrowed funds		5,449,096			6,085,204			5,331,161			5,331,147			5,556,010			5,449,096			5,556,010
Total shareholders’ equity		6,367,298			6,075,072			5,595,408			5,562,900			5,239,537			6,367,298			5,239,537
Capital Ratios
Risk-based capital ratios (EOP):
Tier 1 common equity		11.00	%		10.73	%		10.76	%		10.70	%		10.41	%		11.00	%		10.41	%
Tier 1 capital		11.60	%		11.33	%		11.40	%		11.35	%		11.06	%		11.60	%		11.06	%
Total capital		12.94	%		12.71	%		12.74	%		12.64	%		12.32	%		12.94	%		12.32	%
Leverage ratio (average assets)		9.05	%		8.90	%		8.96	%		8.83	%		8.70	%		9.05	%		8.70	%
Equity to assets (averages)³		11.60	%		11.31	%		11.32	%		10.81	%		10.88	%		11.41	%		10.95	%
TCE to TA³		7.44	%		6.94	%		6.86	%		6.85	%		6.15	%		7.44	%		6.15	%
Nonfinancial Data
Full-time equivalent employees		4,105			4,267			3,955			3,940			3,981			4,105			3,981
Banking centers		280			280			258			258			257			280			257
¹ Calculated using the federal statutory tax rate in effect of 21% for all periods.
² Cash dividends per common share divided by net income per common share (basic).
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures. September 30, 2024 capital ratios are preliminary.
⁴ Includes the allowance for credit losses on loans and unfunded loan commitments.

FTE – Fully taxable equivalent basis ROAA – Return on average assets ROAE – Return on average equity ROATCE – Return on average tangible common equity
NCOs – Net Charge-offs ACL – Allowance for Credit Losses EOP – End of period actual balances NPLs – Non-performing Loans TCE – Tangible common equity TA – Tangible assets


Income Statement (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Interest income	$	679,925		$	663,663		$	595,981		$	589,751		$	576,519		$	1,939,569		$	1,617,070
Less: interest expense		288,201			275,242			239,523			225,343			201,433			802,966			478,325
Net interest income		391,724			388,421			356,458			364,408			375,086			1,136,603			1,138,745
Provision for credit losses		28,497			36,214			18,891			11,595			19,068			83,602			47,292
Net interest income after provision for credit losses		363,227			352,207			337,567			352,813			356,018			1,053,001			1,091,453
Wealth and investment services fees		29,117			29,358			28,304			27,656			26,687			86,779			80,128
Service charges on deposit accounts		20,350			19,350			17,898			18,667			18,524			57,598			53,278
Debit card and ATM fees		11,362			10,993			10,054			10,700			10,818			32,409			31,453
Mortgage banking revenue		7,669			7,064			4,478			3,691			5,063			19,211			12,628
Capital markets income		7,426			4,729			2,900			5,416			5,891			15,055			19,003
Company-owned life insurance		5,315			5,739			3,434			3,773			3,740			14,488			11,624
Gain on sale of Visa Class B restricted shares		—			—			—			21,635			—			—			—
Other income		12,975			10,036			10,470			9,381			10,456			33,481			30,574
Debt securities gains (losses), net		(76	)		2			(16	)		(825	)		(241	)		(90	)		(5,440	)
Total noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Salaries and employee benefits		147,494			159,193			149,803			141,649			131,541			456,490			404,715
Occupancy		27,130			26,547			27,019			26,514			25,795			80,696			80,162
Equipment		9,888			8,704			8,671			8,769			8,284			27,263			23,394
Marketing		11,036			11,284			10,634			10,813			9,448			32,954			28,698
Technology		23,343			24,002			20,023			20,493			20,592			67,368			59,850
Communication		4,681			4,480			4,000			4,212			4,075			13,161			12,768
Professional fees		7,278			10,552			6,406			8,250			5,956			24,236			19,085
FDIC assessment		11,722			9,676			11,313			27,702			9,000			32,711			29,028
Amortization of intangibles		7,411			7,425			5,455			5,869			6,040			20,291			18,286
Amortization of tax credit investments		3,277			2,747			2,749			7,200			2,644			8,773			8,167
Other expense		19,023			18,389			16,244			22,764			21,401			53,656			57,918
Total noninterest expense		272,283			282,999			262,317			284,235			244,776			817,599			742,071
Income before income taxes		185,082			156,479			152,772			168,672			192,180			494,333			582,630
Income tax expense		41,280			35,250			32,488			36,192			44,304			109,018			133,118
Net income	$	143,802		$	121,229		$	120,284		$	132,480		$	147,876		$	385,315		$	449,512
Preferred dividends		(4,034	)		(4,033	)		(4,034	)		(4,034	)		(4,034	)		(12,101	)		(12,101	)
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411

EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49		$	1.21		$	1.50
Weighted Average Common Shares Outstanding
Basic		315,622			315,585			290,980			290,701			290,648			307,426			290,763
Diluted		317,331			316,461			292,207			292,029			291,717			308,605			291,809
Common shares outstanding (EOP)		318,955			318,969			293,330			292,655			292,586			318,955			292,586


End of Period Balance Sheet (unaudited)
($ in thousands)
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Assets
Cash and due from banks	$	498,120		$	428,665		$	350,990		$	430,866		$	381,343
Money market and other interest-earning investments		693,450			804,381			588,509			744,192			1,282,087
Investments:
Treasury and government-sponsored agencies		2,335,716			2,207,004			2,243,754			2,453,950			2,515,249
Mortgage-backed securities		6,085,826			5,890,371			5,566,881			5,245,691			4,906,290
States and political subdivisions		1,665,128			1,678,597			1,672,061			1,693,819			1,705,200
Other securities		783,079			775,623			760,847			779,048			751,404
Total investments		10,869,749			10,551,595			10,243,543			10,172,508			9,878,143
Loans held-for-sale, at fair value		62,376			66,126			19,418			32,006			122,033
Loans:
Commercial		10,408,095			10,332,631			9,648,269			9,512,230			9,333,448
Commercial and agriculture real estate		16,356,216			16,016,958			14,653,958			14,140,629			13,916,221
Residential real estate		6,757,896			6,894,957			6,661,379			6,699,443			6,696,288
Consumer		2,878,436			2,905,967			2,659,713			2,639,625			2,631,877
Total loans		36,400,643			36,150,513			33,623,319			32,991,927			32,577,834
Allowance for credit losses on loans		(380,840	)		(366,335	)		(319,713	)		(307,610	)		(303,982	)
Premises and equipment, net		599,528			601,945			564,007			565,396			565,607
Goodwill and other intangible assets		2,305,084			2,306,204			2,095,511			2,100,966			2,106,835
Company-owned life insurance		863,723			862,032			767,423			767,902			774,517
Accrued interest receivable and other assets		1,690,460			1,714,519			1,601,911			1,591,683			1,675,031
Total assets	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448

Liabilities and Equity
Noninterest-bearing demand deposits	$	9,429,285		$	9,336,042		$	9,257,709		$	9,664,247		$	10,091,352
Interest-bearing:
Checking and NOW accounts		7,314,245			7,680,865			7,236,667			7,331,487			7,495,417
Savings accounts		4,781,447			4,983,811			5,020,095			5,099,186			5,296,985
Money market accounts		11,601,461			10,485,491			10,234,113			9,561,116			8,793,218
Other time deposits		6,010,070			5,688,432			4,760,659			4,565,137			4,398,182
Total core deposits		39,136,508			38,174,641			36,509,243			36,221,173			36,075,154
Brokered deposits		1,709,238			1,824,587			1,190,175			1,014,007			1,177,522
Total deposits		40,845,746			39,999,228			37,699,418			37,235,180			37,252,676

Federal funds purchased and interbank borrowings		135,263			250,154			50,416			390			918
Securities sold under agreements to repurchase		244,626			240,713			274,493			285,206			279,061
Federal Home Loan Bank advances		4,471,153			4,744,560			4,193,039			4,280,681			4,412,576
Other borrowings		598,054			849,777			813,213			764,870			863,455
Total borrowed funds		5,449,096			6,085,204			5,331,161			5,331,147			5,556,010
Accrued expenses and other liabilities		940,153			960,141			908,931			960,609			1,011,225
Total liabilities		47,234,995			47,044,573			43,939,510			43,526,936			43,819,911
Preferred stock, common stock, surplus, and retained earnings		6,971,054			6,866,480			6,375,036			6,301,709			6,208,352
Accumulated other comprehensive income (loss), net of tax		(603,756	)		(791,408	)		(779,628	)		(738,809	)		(968,815	)
Total shareholders’ equity		6,367,298			6,075,072			5,595,408			5,562,900			5,239,537
Total liabilities and shareholders’ equity	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Three Months Ended							Three Months Ended							Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average			Income¹/		Yield/		Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	904,176		$	11,696	5.15	%	$	814,944		$	11,311	5.58	%	$	980,813		$	13,194	5.34	%
Investments:
Treasury and government-sponsored agencies		2,255,629			21,851	3.87	%		2,208,935			21,531	3.90	%		2,376,864			23,037	3.88	%
Mortgage-backed securities		5,977,058			48,425	3.24	%		5,828,225			47,904	3.29	%		5,079,091			33,237	2.62	%
States and political subdivisions		1,668,454			14,042	3.37	%		1,686,994			14,290	3.39	%		1,737,037			14,220	3.27	%
Other securities		785,107			12,547	6.39	%		788,571			12,583	6.38	%		793,196			10,127	5.11	%
Total investments		10,686,248			96,865	3.63	%		10,512,725			96,308	3.66	%		9,986,188			80,621	3.23	%
Loans:²
Commercial		10,373,340			183,878	7.09	%		10,345,098			183,425	7.09	%		9,612,102			163,869	6.82	%
Commercial and agriculture real estate		16,216,842			274,832	6.78	%		15,870,809			260,407	6.56	%		13,711,156			219,575	6.41	%
Residential real estate loans		6,833,597			67,084	3.93	%		6,952,942			67,683	3.89	%		6,712,269			62,775	3.74	%
Consumer		2,891,260			51,714	7.12	%		2,910,331			50,869	7.03	%		2,614,928			42,322	6.42	%
Total loans		36,315,039			577,508	6.36	%		36,079,180			562,384	6.24	%		32,650,455			488,541	5.98	%

Total earning assets	$	47,905,463		$	686,069	5.73	%	$	47,406,849		$	670,003	5.66	%	$	43,617,456		$	582,356	5.34	%

Less: Allowance for credit losses on loans		(366,667	)						(331,043	)						(300,071	)

Non-earning Assets:
Cash and due from banks	$	413,583						$	430,256						$	382,755
Other assets		5,394,032							5,341,022							4,960,383

Total assets	$	53,346,411						$	52,847,084						$	48,660,523

Interest-Bearing Liabilities:
Checking and NOW accounts	$	7,551,264		$	29,344	1.55	%	$	8,189,454		$	34,398	1.69	%	$	7,515,439		$	25,531	1.35	%
Savings accounts		4,860,161			5,184	0.42	%		5,044,800			5,254	0.42	%		5,414,775			4,268	0.31	%
Money market accounts		11,064,433			106,148	3.82	%		10,728,156			102,560	3.84	%		7,979,999			65,549	3.26	%
Other time deposits		5,928,241			64,435	4.32	%		5,358,103			56,586	4.25	%		4,229,692			37,110	3.48	%
Total interest-bearing core deposits		29,404,099			205,111	2.78	%		29,320,513			198,798	2.73	%		25,139,905			132,458	2.09	%
Brokered deposits		1,829,218			24,616	5.35	%		1,244,237			17,008	5.50	%		1,183,228			14,970	5.02	%
Total interest-bearing deposits		31,233,317			229,727	2.93	%		30,564,750			215,806	2.84	%		26,323,133			147,428	2.22	%

Federal funds purchased and interbank borrowings		14,549			292	7.98	%		148,835			1,986	5.37	%		62,921			910	5.74	%
Securities sold under agreements to repurchase		239,524			612	1.02	%		249,939			639	1.03	%		302,305			710	0.93	%
Federal Home Loan Bank advances		4,572,046			47,719	4.15	%		4,473,978			44,643	4.01	%		4,537,250			40,382	3.53	%
Other borrowings		754,544			9,851	5.19	%		891,609			12,168	5.49	%		841,307			12,003	5.66	%
Total borrowed funds		5,580,663			58,474	4.17	%		5,764,361			59,436	4.15	%		5,743,783			54,005	3.73	%

Total interest-bearing liabilities	$	36,813,980		$	288,201	3.11	%	$	36,329,111		$	275,242	3.05	%	$	32,066,916		$	201,433	2.49	%

Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits	$	9,371,698						$	9,558,675						$	10,338,267
Other liabilities		970,662							980,322							961,268
Shareholders’ equity		6,190,071							5,978,976							5,294,072

Total liabilities and shareholders’ equity	$	53,346,411						$	52,847,084						$	48,660,523

Net interest rate spread						2.62	%						2.61	%						2.85	%

Net interest margin (GAAP)						3.27	%						3.28	%						3.44	%

Net interest margin (FTE)³						3.32	%						3.33	%						3.49	%

FTE adjustment				$	6,144						$	6,340						$	5,837

¹ Interest income is reflected on a FTE basis.
² Includes loans held-for-sale.
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Nine Months Ended							Nine Months Ended
	September 30, 2024							September 30, 2023
	Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	825,743		$	32,992	5.34	%	$	736,225		$	25,258	4.59	%
Investments:
Treasury and government-sponsored agencies		2,275,607			66,648	3.91	%		2,266,177			58,923	3.47	%
Mortgage-backed securities		5,721,725			135,217	3.15	%		5,268,509			102,618	2.60	%
States and political subdivisions		1,678,504			42,308	3.36	%		1,771,155			43,306	3.26	%
Other securities		781,385			37,303	6.37	%		785,474			28,726	4.88	%
Total investments	$	10,457,221		$	281,476	3.59	%	$	10,091,315		$	233,573	3.09	%
Loans:²
Commercial		10,087,322			534,566	7.07	%		9,644,541			475,210	6.57	%
Commercial and agriculture real estate		15,488,010			765,325	6.59	%		13,180,509			598,337	6.05	%
Residential real estate loans		6,826,809			197,770	3.86	%		6,626,551			181,592	3.65	%
Consumer		2,815,837			146,177	6.93	%		2,612,519			120,428	6.16	%
Total loans		35,217,978			1,643,838	6.22	%		32,064,120			1,375,567	5.72	%

Total earning assets	$	46,500,942		$	1,958,306	5.62	%	$	42,891,660		$	1,634,398	5.08	%

Less: Allowance for credit losses on loans		(337,168	)						(301,909	)

Non-earning Assets:
Cash and due from banks	$	402,213						$	412,998
Other assets		5,232,807							4,917,592

Total assets	$	51,798,794						$	47,920,341

Interest-Bearing Liabilities:
Checking and NOW accounts	$	7,627,029		$	88,994	1.56	%	$	7,793,561		$	69,248	1.19	%
Savings accounts		4,976,361			15,455	0.41	%		5,791,780			9,745	0.22	%
Money market accounts		10,571,821			302,921	3.83	%		6,577,317			120,917	2.46	%
Other time deposits		5,327,361			168,453	4.22	%		3,660,156			79,032	2.89	%
Total interest-bearing core deposits		28,502,572			575,823	2.70	%		23,822,814			278,942	1.57	%
Brokered deposits		1,375,231			55,149	5.36	%		879,886			32,053	4.87	%
Total interest-bearing deposits		29,877,803			630,972	2.82	%		24,702,700			310,995	1.68	%

Federal funds purchased and interbank borrowings		77,262			3,239	5.60	%		306,480			11,404	4.97	%
Securities sold under agreements to repurchase		261,818			2,168	1.11	%		351,362			2,389	0.91	%
Federal Home Loan Bank advances		4,477,851			133,529	3.98	%		4,699,074			123,466	3.51	%
Other borrowings		823,746			33,058	5.36	%		806,575			30,071	4.98	%
Total borrowed funds		5,640,677			171,994	4.07	%		6,163,491			167,330	3.63	%

Total interest-bearing liabilities		35,518,480			802,966	3.02	%		30,866,191			478,325	2.07	%

Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits	$	9,396,081						$	10,864,375
Other liabilities		971,687							944,619
Shareholders’ equity		5,912,546							5,245,156

Total liabilities and shareholders’ equity	$	51,798,794						$	47,920,341

Net interest rate spread						2.60	%						3.01	%

Net interest margin (GAAP)						3.26	%						3.54	%

Net interest margin (FTE)³						3.31	%						3.59	%

FTE adjustment				$	18,737						$	17,328

¹ Interest income is reflected on a FTE.
² Includes loans held-for-sale.
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.


Asset Quality (EOP) (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
Allowance for credit losses:
Beginning allowance for credit losses on loans	$	366,335		$	319,713		$	307,610		$	303,982		$	300,555		$	307,610		$	303,671
Allowance established for acquired PCD loans		2,803			23,922			—			—			—			26,725			—
Provision for credit losses on loans		29,176			36,745			23,853			13,329			23,115			89,774			46,520
Gross charge-offs		(18,965	)		(17,041	)		(14,020	)		(13,202	)		(22,750	)		(50,026	)		(55,261	)
Gross recoveries		1,491			2,996			2,270			3,501			3,062			6,757			9,052
NCOs		(17,474	)		(14,045	)		(11,750	)		(9,701	)		(19,688	)		(43,269	)		(46,209	)
Ending allowance for credit losses on loans	$	380,840		$	366,335		$	319,713		$	307,610		$	303,982		$	380,840		$	303,982
Beginning allowance for credit losses on unfunded commitments	$	25,733		$	26,264		$	31,226		$	32,960		$	37,007		$	31,226		$	32,188
Provision (release) for credit losses on unfunded commitments		(679	)		(531	)		(4,962	)		(1,734	)		(4,047	)		(6,172	)		772
Ending allowance for credit losses on unfunded commitments	$	25,054		$	25,733		$	26,264		$	31,226		$	32,960		$	25,054		$	32,960
Allowance for credit losses	$	405,894		$	392,068		$	345,977		$	338,836		$	336,942		$	405,894		$	336,942
Provision for credit losses on loans	$	29,176		$	36,745		$	23,853		$	13,329		$	23,115		$	89,774		$	46,520
Provision (release) for credit losses on unfunded commitments		(679	)		(531	)		(4,962	)		(1,734	)		(4,047	)		(6,172	)		772
Provision for credit losses	$	28,497		$	36,214		$	18,891		$	11,595		$	19,068		$	83,602		$	47,292
NCOs / average loans¹		0.19	%		0.16	%		0.14	%		0.12	%		0.24	%		0.16	%		0.19	%
Average loans¹	$	36,299,544		$	36,053,845		$	33,242,739		$	32,752,406		$	32,639,812		$	35,202,727		$	32,057,989
EOP loans¹		36,400,643			36,150,513			33,623,319			32,991,927			32,577,834			36,400,643			32,577,834
ACL on loans / EOP loans¹		1.05	%		1.01	%		0.95	%		0.93	%		0.93	%		1.05	%		0.93	%
ACL / EOP loans¹		1.12	%		1.08	%		1.03	%		1.03	%		1.03	%		1.12	%		1.03	%
Underperforming Assets:
Loans 90 days and over (still accruing)	$	1,177		$	5,251		$	2,172		$	961		$	1,192		$	1,177		$	1,192
Nonaccrual loans		443,597			340,181			328,645			274,821			261,346			443,597			261,346
Foreclosed assets		4,077			8,290			9,344			9,434			9,761			4,077			9,761
Total underperforming assets	$	448,851		$	353,722		$	340,161		$	285,216		$	272,299		$	448,851		$	272,299
Classified and Criticized Assets:
Nonaccrual loans	$	443,597		$	340,181		$	328,645		$	274,821		$	261,346		$	443,597		$	261,346
Substandard loans (still accruing)		1,074,243			841,087			626,157			599,358			563,427			1,074,243			563,427
Loans 90 days and over (still accruing)		1,177			5,251			2,172			961			1,192			1,177			1,192
Total classified loans – “problem loans”		1,519,017			1,186,519			956,974			875,140			825,965			1,519,017			825,965
Other classified assets		59,485			60,772			54,392			48,930			48,998			59,485			48,998
Special Mention		837,543			967,655			827,419			843,920			775,526			837,543			775,526
Total classified and criticized assets	$	2,416,045		$	2,214,946		$	1,838,785		$	1,767,990		$	1,650,489		$	2,416,045		$	1,650,489
Loans 30-89 days past due (still accruing)	$	91,750		$	51,712		$	53,112		$	71,868		$	56,772		$	91,750		$	56,772
Nonaccrual loans / EOP loans¹		1.22	%		0.94	%		0.98	%		0.83	%		0.80	%		1.22	%		0.80	%
ACL / nonaccrual loans		92	%		115	%		105	%		123	%		129	%		92	%		129	%
Under-performing assets/EOP loans¹		1.23	%		0.98	%		1.01	%		0.86	%		0.84	%		1.23	%		0.84	%
Under-performing assets/EOP assets		0.84	%		0.67	%		0.69	%		0.58	%		0.56	%		0.84	%		0.56	%
30+ day delinquencies/EOP loans¹		0.26	%		0.16	%		0.16	%		0.22	%		0.18	%		0.26	%		0.18	%

¹ Excludes loans held-for-sale.


Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended																Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
		2024			2024			2024			2023			2023				2024			2023
Earnings Per Share:
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842			$	373,214		$	437,411
Adjustments:
Merger-related charges		6,860			19,440			2,908			5,529			6,257				29,208			23,187
Tax effect¹		(1,528	)		(4,413	)		(710	)		(1,343	)		(1,042	)			(6,651	)		(4,491	)
Merger-related charges, net		5,332			15,027			2,198			4,186			5,215				22,557			18,696
Separation expense		2,646			—			—			—			—				2,646			—
Tax effect¹		(589	)		—			—			—			—				(589	)		—
Separation expense, net		2,057			—			—			—			—				2,057			—
Debt securities (gains) losses		76			(2	)		16			825			241				90			5,440
Tax effect¹		(17	)		1			(4	)		(200	)		(40	)			(20	)		(1,175	)
Debt securities (gains) losses, net		59			(1	)		12			625			201				70			4,265
CECL Day 1 non-PCD provision expense		—			15,312			—			—			—				15,312			—
Tax effect¹		—			(3,476	)		—			—			—				(3,476	)		—
CECL Day 1 non-PCD provision expense, net		—			11,836			—			—			—				11,836			—
Distribution of excess pension assets		—			—			13,318			—			—		—		13,318			—
Tax effect¹		—			—			(3,250	)		—			—		—		(3,250	)		—
Distribution excess pension assets, net		—			—			10,068			—			—				10,068			—
FDIC special assessment		—			—			2,994			19,052			—				2,994			—
Tax effect¹		—			—			(731	)		(4,628	)		—				(731	)		—
FDIC special assessment, net		—			—			2,263			14,424			—				2,263			—
Gain on sale of Visa Class B restricted shares		—			—			—			(21,635	)		—				—			—
Tax effect¹		—			—			—			5,255			—				—			—
Gain on sale of Visa Class B restricted shares, net		—			—			—			(16,380	)		—				—			—
Contract termination charge		—			—			—			4,413			—				—			—
Tax effect¹		—			—			—			(1,072	)		—				—			—
Contract termination charge, net		—			—			—			3,341			—				—			—
Louisville expenses		—			—			—			—			—				—			3,361
Tax effect¹		—			—			—			—			—				—			(392	)
Louisville expenses, net		—			—			—			—			—				—			2,969
Property optimization charges		—			—			—			—			—				—			1,559
Tax effect¹		—			—			—			—			—				—			(315	)
Property optimization charges, net		—			—			—			—			—				—			1,244
Total adjustments, net		7,448			26,862			14,541			6,196			5,416				48,851			27,174
Net income applicable to common shares, adjusted	$	147,216		$	144,058		$	130,791		$	134,642		$	149,258			$	422,065		$	464,585
Weighted average diluted common shares outstanding		317,331			316,461			292,207			292,029			291,717				308,605			291,809
EPS, diluted	$	0.44		$	0.37		$	0.40		$	0.44		$	0.49			$	1.21		$	1.50
Adjusted EPS, diluted	$	0.46		$	0.46		$	0.45		$	0.46		$	0.51			$	1.37		$	1.59
NIM:
Net interest income	$	391,724		$	388,421		$	356,458		$	364,408		$	375,086			$	1,136,603		$	1,138,745
Add: FTE adjustment²		6,144			6,340			6,253			6,100			5,837				18,737			17,328
Net interest income (FTE)	$	397,868		$	394,761		$	362,711		$	370,508		$	380,923			$	1,155,340		$	1,156,073
Average earning assets	$	47,905,463		$	47,406,849		$	44,175,079		$	43,701,283		$	43,617,456			$	46,500,942		$	42,891,660
NIM (GAAP)		3.27	%		3.28	%		3.23	%		3.34	%		3.44	%			3.26	%		3.54	%
NIM (FTE)		3.32	%		3.33	%		3.28	%		3.39	%		3.49	%			3.31	%		3.59	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
PPNR:
Net interest income (FTE)²	$	397,868		$	394,761		$	362,711		$	370,508		$	380,923		$	1,155,340		$	1,156,073
Add: Noninterest income		94,138			87,271			77,522			100,094			80,938			258,931			233,248
Total revenue (FTE)		492,006			482,032			440,233			470,602			461,861			1,414,271			1,389,321
Less: Noninterest expense		(272,283	)		(282,999	)		(262,317	)		(284,235	)		(244,776	)		(817,599	)		(742,071	)
PPNR	$	219,723		$	199,033		$	177,916		$	186,367		$	217,085		$	596,672		$	647,250
Adjustments:
Gain on sale of Visa Class B restricted shares	$	—		$	—		$	—		$	(21,635	)	$	—		$	—		$	—
Debt securities (gains) losses		76			(2	)		16			825			241			90			5,440
Noninterest income adjustments		76			(2	)		16			(20,810	)		241			90			5,440
Adjusted noninterest income		94,214			87,269			77,538			79,284			81,179			259,021			238,688
Adjusted revenue	$	492,082		$	482,030		$	440,249		$	449,792		$	462,102		$	1,414,361		$	1,394,761
Adjustments:
Merger-related charges	$	6,860		$	19,440		$	2,908		$	5,529		$	6,257		$	29,208		$	23,187
Separation expense		2,646			—			—			—			—			2,646			—
Distribution of excess pension assets		—			—			13,318			—			—			13,318			—
FDIC Special Assessment		—			—			2,994			19,052			—			2,994			—
Contract termination charges		—			—			—			4,413			—			—			—
Louisville expenses		—			—			—			—			—			—			3,361
Property optimization charges		—			—			—			—			—			—			1,559
Noninterest expense adjustments		9,506			19,440			19,220			28,994			6,257			48,166			28,107
Adjusted total noninterest expense		(262,777	)		(263,559	)		(243,097	)		(255,241	)		(238,519	)		(769,433	)		(713,964	)
Adjusted PPNR	$	229,305		$	218,471		$	197,152		$	194,551		$	223,583		$	644,928		$	680,797
Efficiency Ratio:
Noninterest expense	$	272,283		$	282,999		$	262,317		$	284,235		$	244,776		$	817,599		$	742,071
Less: Amortization of intangibles		(7,411	)		(7,425	)		(5,455	)		(5,869	)		(6,040	)		(20,291	)		(18,286	)
Noninterest expense, excl. amortization of intangibles		264,872			275,574			256,862			278,366			238,736			797,308			723,785
Less: Amortization of tax credit investments		(3,277	)		(2,747	)		(2,749	)		(7,200	)		(2,644	)		(8,773	)		(8,167	)
Less: Noninterest expense adjustments		(9,506	)		(19,440	)		(19,220	)		(28,994	)		(6,257	)		(48,166	)		(28,107	)
Adjusted noninterest expense, excluding amortization	$	252,089		$	253,387		$	234,893		$	242,172		$	229,835		$	740,369		$	687,511
Total revenue (FTE)²	$	492,006		$	482,032		$	440,233		$	470,602		$	461,861		$	1,414,271		$	1,389,321
Less: Debt securities (gains) losses		76			(2	)		16			825			241			90			5,440
Total revenue excl. debt securities (gains) losses		492,082			482,030			440,249			471,427			462,102			1,414,361			1,394,761
Less: Gain on sale of Visa Class B restricted shares		—			—			—			(21,635	)		—			—			—
Total adjusted revenue	$	492,082		$	482,030		$	440,249		$	449,792		$	462,102		$	1,414,361		$	1,394,761
Efficiency Ratio		53.8	%		57.2	%		58.3	%		59.0	%		51.7	%		56.4	%		51.9	%
Adjusted Efficiency Ratio		51.2	%		52.6	%		53.4	%		53.8	%		49.7	%		52.3	%		49.3	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,			September 30,
		2024			2024			2024			2023			2023			2024			2023
ROAE and ROATCE:
Net income applicable to common shares	$	139,768		$	117,196		$	116,250		$	128,446		$	143,842		$	373,214		$	437,411
Amortization of intangibles		7,411			7,425			5,455			5,869			6,040			20,291			18,286
Tax effect¹		(1,853	)		(1,856	)		(1,364	)		(1,467	)		(1,510	)		(5,073	)		(4,572	)
Amortization of intangibles, net		5,558			5,569			4,091			4,402			4,530			15,218			13,714
Net income applicable to common shares, excluding intangibles amortization		145,326			122,765			120,341			132,848			148,372			388,432			451,125
Total adjustments, net (see pg.12)		7,448			26,862			14,541			6,196			5,416			48,851			27,174
Adjusted net income applicable to common shares, excluding intangibles amortization	$	152,774		$	149,627		$	134,882		$	139,044		$	153,788		$	437,283		$	478,299
Average shareholders’ equity	$	6,190,071		$	5,978,976		$	5,565,542		$	5,281,487		$	5,294,072		$	5,912,546		$	5,245,156
Less: Average preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Average shareholders’ common equity	$	5,946,352		$	5,735,257		$	5,321,823		$	5,037,768		$	5,050,353		$	5,668,827		$	5,001,437
Average goodwill and other intangible assets		(2,304,597	)		(2,245,405	)		(2,098,338	)		(2,103,935	)		(2,109,944	)		(2,216,437	)		(2,115,953	)
Average tangible shareholder’s common equity	$	3,641,755		$	3,489,852		$	3,223,485		$	2,933,833		$	2,940,409		$	3,452,390		$	2,885,484
ROAE		9.4	%		8.2	%		8.7	%		10.2	%		11.4	%		8.8	%		11.7	%
ROAE, adjusted		9.9	%		10.0	%		9.8	%		10.7	%		11.8	%		9.9	%		12.4	%
ROATCE		16.0	%		14.1	%		14.9	%		18.1	%		20.2	%		15.0	%		20.8	%
ROATCE, adjusted		16.8	%		17.2	%		16.7	%		19.0	%		20.9	%		16.9	%		22.1	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
Tangible Common Equity:
Shareholders’ equity	$	6,367,298		$	6,075,072		$	5,595,408		$	5,562,900		$	5,239,537
Less: Preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Shareholders’ common equity	$	6,123,579		$	5,831,353		$	5,351,689		$	5,319,181		$	4,995,818
Less: Goodwill and other intangible assets		(2,305,084	)		(2,306,204	)		(2,095,511	)		(2,100,966	)		(2,106,835	)
Tangible shareholders’ common equity	$	3,818,495		$	3,525,149		$	3,256,178		$	3,218,215		$	2,888,983

Total assets	$	53,602,293		$	53,119,645		$	49,534,918		$	49,089,836		$	49,059,448
Less: Goodwill and other intangible assets		(2,305,084	)		(2,306,204	)		(2,095,511	)		(2,100,966	)		(2,106,835	)
Tangible assets	$	51,297,209		$	50,813,441		$	47,439,407		$	46,988,870		$	46,952,613

Risk-weighted assets³	$	40,584,608		$	40,627,117		$	37,845,139		$	37,407,347		$	37,501,646

Tangible common equity to tangible assets		7.44	%		6.94	%		6.86	%		6.85	%		6.15	%
Tangible common equity to risk-weighted assets³		9.41	%		8.68	%		8.60	%		8.60	%		7.70	%
Tangible Common Book Value:
Common shares outstanding		318,955			318,969			293,330			292,655			292,586
Tangible common book value	$	11.97		$	11.05		$	11.10		$	11.00		$	9.87

¹ Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state).
² Calculated using the federal statutory tax rate in effect of 21% for all periods.
³ September 30, 2024 figures are preliminary.

MIL-OSI: Gabelli Funds to Host 48th Annual Automotive Symposium at The Encore at Wynn, Las Vegas, Nevada

Source: GlobeNewswire (MIL-OSI)

GREENWICH, Conn., Oct. 22, 2024 (GLOBE NEWSWIRE) — Gabelli Funds will host its 48^th Annual Automotive Symposium on November 4^th and 5^th, 2024 at the Encore at Wynn in Las Vegas, Nevada. This two-day symposium will feature presentations by senior managements of leading automotive and trucking companies, with a lineup that enables investors to understand ever-changing dynamics within the automotive industry.

Presenting attendees, which include original equipment suppliers, automotive retailers, aftermarket service participants and next-gen tech companies driving vehicle electrification will provide a “cradle to grave” look at the automotive ecosystem and help investors understand “What’s Next?” for the automotive space.

Agenda

	Monday, November 4		Tuesday, November 5
11:00AM	Gabelli Auto Team	8:20AM	Introduction
11:20	NN, Inc. (NASDAQ: NNBR)	8:30	Dorman Products, Inc. (NASDAQ: DORM)
11:50	MP Materials Corp. (NYSE: MP)	9:00	AutoNation, Inc. (NYSE: AN)
12:10PM	Lunch Break	9:30	PHINIA Inc. (NYSE: PHIN)
12:30	Gentex Corporation (NASDAQ: GNTX)	10:00	AutoZone, Inc. (NYSE: AZO)
1:00	Garrett Motion Inc. (NASDAQ: GTX)	10:30	Standard Motor Products, Inc. (NYSE: SMP)
1:30	Donaldson Company, Inc. (NYSE: DCI)	11:00	Genuine Parts Company (NYSE: GPC)
2:00	MEMA / AASA	11:30	Monro, Inc. (NASDAQ: MNRO)
3:00	Dana Incorporated (NYSE: DAN)	12:00PM	Lunch Break
3:30	Rush Enterprises, Inc. (NASDAQ: RUSHA/RUSHB)	12:15	Keynote – EVolving Landscape in Auto Repair
4:00	Penske Automotive Group, Inc. (NYSE: PAG)	1:00	Motorcar Parts of America, Inc. (NASDAQ: MPAA)
4:30	Myers Industries, Inc. (NYSE: MYE)	1:30	O’Reilly Automotive, Inc. (NASDAQ: ORLY)
TBD	Gabelli Funds’ Cocktail Reception	2:00	CarParts.com, Inc. (NASDAQ: PRTS)
		2:30	Strattec Security Corporation (NASDAQ: STRT)

The Encore at Wynn, Las Vegas, NV
Monday, November 4^th and Tuesday, November 5^th

Registration link: CLICK HERE

For general inquiries, contact:
James Carey, Associate – Private Wealth Management, 914-921-8318, jcarey@gabelli.com
Miles McQuillen, AVP – Private Wealth Management, 914-921-5112, mmcquillen@gabelli.com

Gabelli Funds, LLC is a registered investment adviser with the Securities and Exchange Commission and is a wholly owned subsidiary of GAMCO Investors, Inc.

Contact:

Brian Sponheimer
Portfolio Manager
(914) 921-8336

MIL-OSI: First Financial Corporation Reports Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

TERRE HAUTE, Ind., Oct. 22, 2024 (GLOBE NEWSWIRE) — First Financial Corporation (NASDAQ:THFF) today announced results for the third quarter of 2024. During the quarter, the Corporation closed its acquisition of SimplyBank, Dayton, Tennessee. The quarter was impacted by purchase accounting adjustments and charges, which are reflected in the results.

Net income was $8.7 million compared to $16.3 million reported for the same period of 2023;
Diluted net income per common share of $0.74 compared to $1.37 for the same period of 2023;
Return on average assets was 0.64% compared to 1.35% for the three months ended September 30, 2023;
Credit loss provision was $9.4 million compared to provision of $1.2 million for the third quarter 2023; and
Pre-tax, pre-provision net income was $19.9 million compared to $20.5 million for the same period in 2023.¹

The Corporation further reported results for the nine months ended September 30, 2024:

Net income was $31.0 million compared to $48.3 million reported for the same period of 2023;
Diluted net income per common share of $2.63 compared to $4.02 for the same period of 2023;
Return on average assets was 0.82% compared to 1.33% for the nine months ended September 30, 2023;
Credit loss provision was $14.2 million compared to provision of $4.8 million for the nine months ended September 30, 2023; and
Pre-tax, pre-provision net income was $51.1 million compared to $63.1 million for the same period in 2023.¹

________________
¹Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release.

Average Total Loans

Average total loans for the third quarter of 2024 were $3.71 billion versus $3.15 billion for the comparable period in 2023, an increase of $558 million or 17.74%. On a linked quarter basis, average loans increased $508 million or 15.89% from $3.20 billion as of June 30, 2024. Increases in average loans over both periods were mostly a result of the acquisition of SimplyBank as further detailed in Total Loans Outstanding section below.

Total Loans Outstanding

Total loans outstanding as of September 30, 2024, were $3.72 billion compared to $3.12 billion as of September 30, 2023, an increase of $598 million or 19.17%. On a linked quarter basis, total loans increased $511 million or 15.96% from $3.20 billion as of June 30, 2024. The main driver of the increase was $467 million in loans acquired in the SimplyBank acquisition. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

Norman D. Lowery, President and Chief Executive Officer, commented, “During the quarter, we closed the acquisition of SimplyBank, which gives us access to very attractive markets in Southeast Tennessee and Northwest Georgia. We also experienced another sound quarter of loan and net interest income growth. During the quarter our net interest margin expanded, and we expect continued improvement in coming quarters.”

Average Total Deposits

Average total deposits for the quarter ended September 30, 2024, were $4.71 billion versus $4.00 billion as of September 30, 2023, an increase of $705 million or 17.63%. Increases in average deposits over both periods were mostly a result of the acquisition of SimplyBank as further detailed in Total Deposits section below.

Total Deposits

Total deposits were $4.72 billion as of September 30, 2024, compared to $4.04 billion as of September 30, 2023, a $676 million increase, or 16.74%. On a linked quarter basis, total deposits increased $585.2 million, or 14.16%. $622 million in deposits were acquired in the SimplyBank acquisition. Non-interest bearing deposits were $831.6 million, and time deposits were $791.1 million as of September 30, 2024, compared to $770.5 million and $471.6 million, respectively for the same period of 2023.

Shareholders’ Equity

Shareholders’ equity at September 30, 2024, was $566.0 million compared to $470.2 million on September 30, 2023. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.45 per share quarterly dividend in July and declared a $0.45 quarterly dividend, which was paid on October 15, 2024.

Book Value Per Share

Book Value per share was $47.93 as of September 30, 2024, compared to $40.00 as of September 30, 2023, an increase of $7.93 per share, or 19.82%. Tangible Book Value per share was $37.84 as of September 30, 2024, compared to $32.10 as of September 30, 2023, an increase of $5.74 per share, or 17.88%.

Tangible Common Equity to Tangible Asset Ratio

The Corporation’s tangible common equity to tangible asset ratio was 8.33% at September 30, 2024, compared to 8.04% at September 30, 2023.

Net Interest Income

Net interest income for the third quarter of 2024 was $47.2 million, compared to $41.2 million reported for the same period of 2023, an increase of $6.0 million, or 14.63%.

Net Interest Margin

The net interest margin for the quarter ended September 30, 2024, was 3.78% compared to the 3.74% reported at September 30, 2023. On a linked quarterly basis, the net interest margin increased 21 basis points from 3.57% at June 30, 2024.

Nonperforming Loans

Nonperforming loans as of September 30, 2024, were $14.1 million versus $12.6 million as of September 30, 2023. The increase was due primarily to the SimplyBank acquisition. The ratio of nonperforming loans to total loans and leases was 0.38% as of September 30, 2024, versus 0.40% as of September 30, 2023.

Credit Loss Provision

The provision for credit losses for the three months ended September 30, 2024, was $9.4 million, compared to $1.2 million for the third quarter 2023. The Corporation recorded $5.5 million in provision for the acquisition of SimplyBank. The increase in provision was also related to one previously identified credit, reflecting further deterioration in collateral values during the quarter.

Net Charge-Offs

Third quarter net charge-offs were $4.6 million compared to $2.1 million in the same period of 2023.

Allowance for Credit Losses

The Corporation’s allowance for credit losses as of September 30, 2024, was $46.2 million compared to $39.0 million as of September 30, 2023. The allowance for credit losses as a percent of total loans was 1.24% as of September 30, 2024, compared to 1.25% as of September 30, 2023. On a linked quarter basis, the allowance for credit losses as a percent of total loans increased 4 basis points from 1.20% as of June 30, 2024. The Corporation recorded $8.5 million in allowance for the acquisition of SimplyBank, which included $3 million to record purchased credit deteriorated (“PCD”) reserves.

Non-Interest Income

Non-interest income for the three months ended September 30, 2024 and 2023 was $11.2 million and $11.6 million, respectively.

Non-Interest Expense

Non-interest expense for the three months ended September 30, 2024, was $38.6 million compared to $32.3 million in 2023. This includes $844 thousand of acquisition-related expenses during the quarter, as well as an overall increase in operating expenses as a result of the acquisition.

Efficiency Ratio

The Corporation’s efficiency ratio was 64.43% for the quarter ending September 30, 2024, versus 59.57% for the same period in 2023.

Income Taxes

Income tax expense for the three months ended September 30, 2024, was $1.7 million versus $3.0 million for the same period in 2023. The effective tax rate for 2024 was 16.44% compared to 17.37% for 2023.

About First Financial Corporation

First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 83 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. Additional information is available at http://www.first-online.bank.

Investor Contact:
Rodger A. McHargue
Chief Financial Officer
P: 812-238-6334
E: rmchargue@first-online.com


	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
END OF PERIOD BALANCES
Assets	$	5,483,351	$	4,891,068	$	4,784,806	$	5,483,351	$	4,784,806
Deposits	$	4,717,489	$	4,132,327	$	4,040,995	$	4,717,489	$	4,040,995
Loans, including net deferred loan costs	$	3,715,235	$	3,204,009	$	3,117,626	$	3,715,235	$	3,117,626
Allowance for Credit Losses	$	46,169	$	38,334	$	39,034	$	46,169	$	39,034
Total Equity	$	565,951	$	530,670	$	470,168	$	565,951	$	470,168
Tangible Common Equity ^(a)	$	446,786	$	438,569	$	377,367	$	446,786	$	377,367

AVERAGE BALANCES
Total Assets	$	5,483,572	$	4,813,308	$	4,814,251	$	5,033,748	$	4,828,165
Earning Assets	$	5,165,520	$	4,556,839	$	4,575,996	$	4,762,940	$	4,590,258
Investments	$	1,342,037	$	1,279,278	$	1,351,433	$	1,309,879	$	1,384,941
Loans	$	3,705,779	$	3,197,695	$	3,147,317	$	3,361,207	$	3,104,623
Total Deposits	$	4,705,614	$	4,113,826	$	4,000,302	$	4,288,426	$	4,124,520
Interest-Bearing Deposits	$	4,403,454	$	3,413,752	$	3,222,633	$	3,714,432	$	3,309,111
Interest-Bearing Liabilities	$	157,227	$	152,303	$	309,948	$	176,985	$	197,142
Total Equity	$	546,912	$	517,890	$	493,764	$	529,174	$	494,428

INCOME STATEMENT DATA
Net Interest Income	$	47,170	$	39,294	$	41,150	$	125,384	$	127,672
Net Interest Income Fully Tax Equivalent ^(b)	$	48,630	$	40,673	$	42,539	$	129,600	$	131,774
Provision for Credit Losses	$	9,400	$	2,966	$	1,200	$	14,166	$	4,800
Non-interest Income	$	11,223	$	9,905	$	11,627	$	30,559	$	31,455
Non-interest Expense	$	38,564	$	32,651	$	32,265	$	104,637	$	95,932
Net Income	$	8,741	$	11,369	$	16,285	$	31,034	$	48,252

PER SHARE DATA
Basic and Diluted Net Income Per Common Share	$	0.74	$	0.96	$	1.37	$	2.63	$	4.02
Cash Dividends Declared Per Common Share	$	0.45	$	0.45	$	—	$	1.35	$	0.54
Book Value Per Common Share	$	47.93	$	44.92	$	40.00	$	47.93	$	40.00
Tangible Book Value Per Common Share ^(c)	$	36.22	$	36.04	$	33.69	$	37.84	$	32.10
Basic Weighted Average Common Shares Outstanding		11,808		11,814		11,901		11,809		11,993

________________
(a) Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholder’s equity.
(b) Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest income fully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of tax exempt income by dividing tax exempt income by the net of tax rate of 75%.
(c) Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividing average tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assets from average shareholder’s equity.


Key Ratios	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Return on average assets	0.64	%	0.94	%	1.35	%	0.82	%	1.33	%
Return on average common shareholder’s equity	6.39	%	8.78	%	13.19	%	7.80	%	12.98	%
Efficiency ratio	64.43	%	64.56	%	59.57	%	65.33	%	58.77	%
Average equity to average assets	9.97	%	10.76	%	10.26	%	10.51	%	10.24	%
Net interest margin ^(a)	3.78	%	3.57	%	3.74	%	3.63	%	3.83	%
Net charge-offs to average loans and leases	0.49	%	0.59	%	0.24	%	0.43	%	0.24	%
Credit loss reserve to loans and leases	1.24	%	1.20	%	1.25	%	1.24	%	1.25	%
Credit loss reserve to nonperforming loans	326.65	%	240.85	%	310.19	%	326.65	%	310.19	%
Nonperforming loans to loans and leases	0.38	%	0.50	%	0.40	%	0.38	%	0.40	%
Tier 1 leverage	10.25	%	12.14	%	11.72	%	10.25	%	11.72	%
Risk-based capital – Tier 1	13.63	%	14.82	%	14.61	%	13.63	%	14.61	%

________________
(a) Net interest margin is calculated on a tax equivalent basis.



Asset Quality	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
	2024		2024		2023		2024		2023
Accruing loans and leases past due 30-89 days	$	16,391	$	14,913	$	15,961	$	16,391	$	15,961
Accruing loans and leases past due 90 days or more	$	1,517	$	1,353	$	1,370	$	1,517	$	1,370
Nonaccrual loans and leases	$	12,617	$	14,563	$	11,214	$	12,617	$	11,214
Other real estate owned	$	169	$	170	$	63	$	169	$	63
Nonperforming loans and other real estate owned	$	14,303	$	16,086	$	12,647	$	14,303	$	12,647
Total nonperforming assets	$	17,179	$	18,978	$	15,671	$	17,179	$	15,671
Gross charge-offs	$	6,936	$	6,091	$	3,601	$	16,219	$	11,520
Recoveries	$	2,365	$	1,414	$	1,528	$	5,449	$	5,975
Net charge-offs/(recoveries)	$	4,571	$	4,677	$	2,073	$	10,770	$	5,545


Non-GAAP Reconciliations	Three Months Ended September 30,
	2024		2023
($in thousands, except EPS)
Income before Income Taxes	$	10,429	$	19,312
Provision for credit losses		9,400		1,200
Provision for unfunded commitments		100		—
Pre-tax, Pre-provision Income	$	19,929	$	20,512


Non-GAAP Reconciliations	Nine Months Ended September 30,
	2024			2023
($ in thousands, except EPS)
Income before Income Taxes	$	37,140		$	58,395
Provision for credit losses		14,166			4,800
Provision for unfunded commitments		(200	)		(100	)
Pre-tax, Pre-provision Income	$	51,106		$	63,095


CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data)

	September 30,			December 31,
	2024			2023
	(unaudited)
ASSETS
Cash and due from banks	$	77,312		$	76,759
Federal funds sold		1,356			282
Securities available-for-sale		1,271,992			1,259,137
Loans:
Commercial		2,112,738			1,817,526
Residential		924,276			695,788
Consumer		671,353			646,758
		3,708,367			3,160,072
(Less) plus:
Net deferred loan costs		6,868			7,749
Allowance for credit losses		(46,169	)		(39,767	)
		3,669,066			3,128,054
Restricted stock		15,366			15,364
Accrued interest receivable		25,386			24,877
Premises and equipment, net		82,213			67,286
Bank-owned life insurance		128,242			114,122
Goodwill		93,363			86,985
Other intangible assets		25,802			5,586
Other real estate owned		169			107
Other assets		93,084			72,587
TOTAL ASSETS	$	5,483,351		$	4,851,146

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	831,575		$	750,335
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		159,618			92,921
Other interest-bearing deposits		3,726,296			3,246,812
		4,717,489			4,090,068
Short-term borrowings		84,363			67,221
FHLB advances		30,456			108,577
Other liabilities		85,092			57,304
TOTAL LIABILITIES		4,917,400			4,323,170

Shareholders’ equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-16,165,023 in 2024 and 16,137,220 in 2023
Outstanding shares-11,808,304 in 2024 and 11,795,024 in 2023		2,016			2,014
Additional paid-in capital		144,785			144,152
Retained earnings		677,155			663,726
Accumulated other comprehensive income/(loss)		(102,800	)		(127,087	)
Less: Treasury shares at cost-4,356,719 in 2024 and 4,342,196 in 2023		(155,205	)		(154,829	)
TOTAL SHAREHOLDERS’ EQUITY		565,951			527,976
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,483,351		$	4,851,146


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2024		2023			2024		2023
						(unaudited)
INTEREST INCOME:
Loans, including related fees	$	61,367	$	49,146		$	162,878	$	140,220
Securities:
Taxable		6,319		6,164			18,083		18,631
Tax-exempt		2,715		2,661			7,919		7,937
Other		1,294		752			2,989		2,864
TOTAL INTEREST INCOME		71,695		58,723			191,869		169,652
INTEREST EXPENSE:
Deposits		22,197		13,627			59,622		35,111
Short-term borrowings		993		1,923			2,928		4,025
Other borrowings		1,335		2,023			3,935		2,844
TOTAL INTEREST EXPENSE		24,525		17,573			66,485		41,980
NET INTEREST INCOME		47,170		41,150			125,384		127,672
Provision for credit losses		9,400		1,200			14,166		4,800
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		37,770		39,950			111,218		122,872
NON-INTEREST INCOME:
Trust and financial services		1,251		1,140			3,903		3,642
Service charges and fees on deposit accounts		8,139		7,099			21,576		20,971
Other service charges and fees		191		213			700		613
Securities gains (losses), net		103		—			104		—
Interchange income		177		—			490		47
Loan servicing fees		274		447			957		997
Gain on sales of mortgage loans		411		321			886		811
Other		677		2,407			1,943		4,374
TOTAL NON-INTEREST INCOME		11,223		11,627			30,559		31,455
NON-INTEREST EXPENSE:
Salaries and employee benefits		18,521		17,159			53,231		51,263
Occupancy expense		2,556		2,389			7,116		7,120
Equipment expense		4,280		3,580			12,736		10,404
FDIC Expense		558		613			1,721		1,977
Other		12,649		8,524			29,833		25,168
TOTAL NON-INTEREST EXPENSE		38,564		32,265			104,637		95,932
INCOME BEFORE INCOME TAXES		10,429		19,312			37,140		58,395
Provision for income taxes		1,688		3,027			6,106		10,143
NET INCOME		8,741		16,285			31,034		48,252
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		31,628		(34,934	)		24,067		(36,504	)
Change in funded status of post retirement benefits, net of taxes		73		146			220		440
COMPREHENSIVE INCOME (LOSS)	$	40,442	$	(18,503	)	$	55,321	$	12,188
PER SHARE DATA
Basic and Diluted Earnings per Share	$	0.74	$	1.37		$	2.63	$	4.02
Weighted average number of shares outstanding (in thousands)		11,808		11,901			11,809		11,993

MIL-OSI: QNB Corp. Reports Earnings for Third Quarter 2024

Source: GlobeNewswire (MIL-OSI)

QUAKERTOWN, Pa., Oct. 22, 2024 (GLOBE NEWSWIRE) — QNB Corp. (the “Company” or “QNB”) (OTC Bulletin Board: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the third quarter of 2024 of $3,338,000, or $0.91 per share on a diluted basis. This compares to net income of $2,344,000, or $0.65 per share on a diluted basis, for the same period in 2023. For the nine months ended September 30, 2024, QNB reported net income of $8,397,000, or $2.29 per share on a diluted basis. This compares to net income of $8,349,000, or $2.32 per share on a diluted basis, reported for the same period in 2023.

For the third quarter of 2024, the annualized rate of return on average assets and average shareholders’ equity was 0.72% and 8.13%, respectively, compared with 0.52% and 5.88%, respectively, for the third quarter 2023.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended September 30, 2024, in comparison with the same period in 2023, due primarily to improvement in the interest margin causing a $1,182,000 increase in net interest income, decreased provision for credit losses on loans and unfunded commitments of $300,000 and a decrease in non-interest expense of $37,000; this was partly offset by a decrease in non-interest income of $96,000. The change in contribution from QNB Corp. for the quarter ended September 30, 2024, compared with the same period in 2023, is primarily due to more gains on sales from the equities portfolio and less unrealized losses on the equity portfolio; partly offset by interest expense on subordinated debt held at the holding company.

The following table presents disaggregated net income (loss):

	Three months ended,								Nine months ended,
	9/30/2024			9/30/2023		Variance			9/30/2024			9/30/2023			Variance
QNB Bank	$	3,394,000		$	2,334,000	$	1,060,000		$	8,466,000		$	8,568,000		$	(102,000	)
QNB Corp		(56,000	)		10,000		(66,000	)		(69,000	)		(219,000	)		150,000
Consolidated net income	$	3,338,000		$	2,344,000	$	994,000		$	8,397,000		$	8,349,000		$	48,000

Total assets as of September 30, 2024 were $1,841,563,000 compared with $1,706,318,000 at December 31, 2023. Total available-for-sale debt securities increased $19,855,000, or 7.9%, to $510,036,000, primarily due to purchases of higher-yielding securities partly offset be the sales of lower-yielding securities and payments. Loans receivable increased $77,828,000, or 7.1%, to $1,171,361,000. Total deposits increased $137,571,000, or 9.2%, to $1,626,284,000. Short-term borrowing declined $71,176,000, or 75.6%. During the third quarter of 2024, the QNB Corp. issued $40,000,000 of subordinated debt; the carrying value net of deferred costs was $39,030,000 at September 30, 2024.

“We continue to experience strong growth in customer loan and deposit balances, which has led to improvement in our net interest income and margin. Growth combined with solid liquidity and good asset quality, has our franchise positioned for positive momentum,” stated David W. Freeman, President and Chief Executive Officer. Freeman continued, “Our successful Sub-Debt issuance has further strengthened our Capital position and will enable continued growth in the future. I am optimistic that we are well positioned to capitalize on the foundation we have built.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended September 30, 2024 totaled $11,127,000, an increase of $914,000, from the same period in 2023. Net interest margin was 2.48% for the third quarter of 2024 and 2.38% for the same period in 2023. Net interest margin was 2.45% for the nine months ended September 30, 2024, compared with 2.40% for the same period in 2023.

The yield on earning assets was 4.86% for the third quarter 2024, compared with 4.28% in the third quarter of 2023; an increase of 58 basis points. For the nine-month period ended September 30, 2024, the yield on earning assets was 4.71%, compared with 3.97% for the same period in 2023. The cost of interest-bearing liabilities was 2.90% for the quarter ended September 30, 2024, compared with 2.35% for the same period in 2023, an increase of 55 basis points. For the nine-month period ended September 30, 2024, the cost of interest-bearing liabilities was 2.77% compared with 1.96% for the same period in 2023.

Proceeds from the growth in average deposits and proceeds from the issuance of subordinated debt and the sale and payments received on investment securities over the past year were invested in loans and other interest earning assets, and used to pay down short-term borrowings. Loan growth was primarily in commercial real estate, which comprised 45% of average earning assets in the third quarter of 2024 compared with 42% for the same period in 2023, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 47 basis-point increase in the yield on loans. The decline in the available-for-sale portfolio was primarily in mortgage-backed securities, which comprised 19% of average earnings assets in the third quarter of 2024 compared with 23% for the same period in 2023. The 40-basis point increase in rate on investments was primarily due to the impact of the interest rate swaps entered into at the end of the second quarter of 2023, contributing to the increase in net interest margin. The 55 basis-point increase in the rate paid on deposits and the issuance of subordinated debt were the primary contributors to the increase in the cost of funds of 55 basis points.

Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses

QNB recorded $154,000 in provision for credit losses on loans in the third quarter of 2024 compared to $452,000 in provision in the third quarter of 2023. QNB’s allowance for credit losses on loans of $8,987,000 represents 0.77% of loans receivable at September 30, 2024, compared to $8,852,000, or 0.81% of loans receivable at December 31, 2023. Net loan charge-offs were $25,000 for the quarter ended September 30, 2024, compared with $275,000 for the same period in 2023. Annualized net loan charge-offs for the quarter ended September 30, 2024 were 0.01% and 0.10% for the quarter ended September 30, 2023, of average loans receivable, respectively. Net loan charge-offs were $58,000 for the nine months ended September 30, 2024, compared with recoveries of $219,000 for the same period in 2023 were primarily due to two large commercial customers. Annualized net loan charge-offs for the nine months ended September 30, 2024 were 0.01% compared to annualized net recoveries of 0.03% for the same period in 2023, of average loans receivable, respectively.

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $1,696,000, or 0.14% of loans receivable at September 30, 2024, compared with $1,940,000, or 0.18% of loans receivable at December 31, 2023. In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At September 30, 2024, $1,021,000, or approximately 60% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $26,883,000 at September 30, 2024, compared with $11,747,000 at December 31, 2023; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,967,000 for the third quarter of 2024 compared with $1,755,000 for the same period in 2023. There was a net realized gain of $224,000 on the sale of investments for the quarter ended September 30, 2024 compared to a net gain of $131,000 on the sales of securities in the same period in 2023. Unrealized net gain on investment equity securities was $143,000 for the quarter ended September 30, 2024 compared to a net loss of $138,000 for the same period in 2023. During the third quarter of 2024 the Bank sold lower yielding securities to better position its net interest margin.

Fees for service to customers increased $48,000 for the quarter ended September 30, 2024, as overdraft fees decreased $16,000 and other deposit-related fees increased $32,000. Retail brokerage and advisory income decreased $80,000 to $139,000 for the same period, due to a decrease in customer balances following employee turnover. Other non-interest income decreased $151,000 for the same period due to a sales tax refund of $115,000 received in 2023 and a decline in merchant fee income of $16,000 due to value.

For the nine months ended September 30, 2024, non-interest income was $5,268,000 an increase of $714,000 compared to the same period in 2023, primarily due to the change in fair value of the equities portfolio of $1,783,000. QNB completed the exchange offer to convert the Bank’s Visa B-1 shares to B-2 and C shares in the second quarter of 2024; the fair value of the Visa C shares was a gain of $1,419,000 at September 30, 2024. Realized loss on sale of securities was $495,000, a decline of $680,000 for the nine months ended September 30, 2024, compared with the same period in 2023. Net gain on sale of loans increased $27,000 when comparing the nine months ended September 30, 2024 with the same period in 2023. Increases in non-interest income for the nine months ended September 30, 2024 compared to the same period in 2023 comprise: fees for services to customers which increased $79,000. Decreases in non-interest income comprised: ATM and debit card fees, retail brokerage and advisory income, and other which decreased $16,000, $297,000 and $182,000, respectively. Other non-interest income decreased the $182,000 due primarily to a sales tax refund of $115,000 received in 2023, losses on disposals of furniture and equipment, mortgage servicing fees and letter of credit fees.

Non-Interest Expense

Total non-interest expense was $8,636,000 for the third quarter of 2024 compared with $8,671,000 for the same period in 2023. Salaries and benefits expense decreased $321,000, or 6.5%, to $4,650,000 when comparing the two quarters. Salary expense and related payroll taxes increased $77,000, or 1.9%, to $4,209,000 during the third quarter of 2024 compared to the same period in 2023. Benefits expense decreased $400,000, or 81.1%, when comparing the two periods primarily due to a reduction in medical costs and stop-loss reimbursements.

Net occupancy and furniture and equipment expense increased $27,000, or 1.8%, to $1,531,000 for the third quarter of 2024 primarily due to software maintenance costs partly offset by a reduction in repairs and maintenance. Other non-interest expense increased $259,000, or 11.8%, when comparing third quarter of 2024 with the same period in 2023 due to an increase in Bank shares tax of $89,000, due to the timing of tax credits received, an increase of $50,000 in debit card expense, an increase in FDIC insurance of $67,000, an increase in third-party services of $69,000, and an increase in write-offs due to fraud on customer accounts of $44,000, partly offset by decreases in director fees of $16,000, a decrease in marketing expense of $19,000 and a reduction loan-related costs of $23,000.

For the nine months ended September 30, 2024, non-interest expense was $26,403,000, an increase of $1,040,000, or 4.1%, compared to the same period in 2023.

Income Taxes

Provision for income taxes increased $467,000 to $961,000 in the third quarter of 2024 due to increased pre-tax income, compared with the same period in 2023. The effective tax rates for the quarter ended September 30, 2024 was 22.4% compared with 17.4% for the same period in 2023. The effective tax rates for the nine months ended September 30, 2024 was 20.5% compared with 18.9% for the same period in 2023.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including “Item lA. Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands)
Balance Sheet (Period End)	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23
Assets	$	1,841,563		$	1,761,487		$	1,716,081		$	1,706,318		$	1,684,392
Cash and cash equivalents		104,232			76,909			50,963			62,657			55,141
Investment securities
Debt securities, AFS		510,036			460,418			481,596			490,181			505,390
Equity securities		2,760			7,233			6,217			5,910			4,765
Loans held-for-sale		294			786			—			549			446
Loans receivable		1,171,361			1,162,310			1,122,616			1,093,533			1,060,450
Allowance for loan losses		(8,987	)		(8,858	)		(8,738	)		(8,852	)		(8,542	)
Net loans		1,162,374			1,153,452			1,113,878			1,084,681			1,051,908
Deposits		1,626,284			1,572,839			1,536,188			1,488,713			1,483,333
Demand, non-interest bearing		190,240			190,333			188,260			185,098			192,226
Interest-bearing demand, money market and savings		1,055,409			1,003,813			990,451			988,634			1,000,921
Time		380,635			378,693			357,477			314,981			290,186
Short-term borrowings		22,918			49,066			55,088			94,094			96,703
Long-term debt		30,000			30,000			20,000			20,000			20,000
Subordinated debt		39,030			—			—			—			—
Shareholders’ equity		105,340			96,885			93,686			90,824			74,081

Asset Quality Data (Period End)
Non-accrual loans	$	1,696		$	2,078		$	2,001		$	1,940		$	1,893
Loans past due 90 days or more and still accruing		—			—			—			—			—
Non-performing loans		1,696			2,078			2,001			1,940			1,893
Other real estate owned and repossessed assets		—			—			—			—			—
Non-performing assets	$	1,696		$	2,078		$	2,001		$	1,940		$	1,893

Allowance for credit losses on loans	$	8,987		$	8,858		$	8,738		$	8,852		$	8,542

Non-performing loans / Loans excluding held-for-sale		0.14	%		0.18	%		0.18	%		0.18	%		0.18	%
Non-performing assets / Assets		0.09	%		0.12	%		0.12	%		0.11	%		0.11	%
Allowance for credit losses on loans / Loans excluding held-for-sale		0.77	%		0.76	%		0.78	%		0.81	%		0.81	%

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands, except per share data)	Three months ended,															Nine months ended,
For the period:	9/30/24			6/30/24			3/31/24			12/31/23			9/30/23			9/30/24			9/30/23
Interest income	$	21,945		$	20,345		$	19,569		$	19,257		$	18,497		$	61,859		$	49,825
Interest expense		10,818			9,753			9,401			9,065			8,284			29,972			19,862
Net interest income		11,127			10,592			10,168			10,192			10,213			31,887			29,963
Provision for credit losses		159			114			(86	)		293			459			187			(1,137	)
Net interest income after provision for credit losses		10,968			10,478			10,254			9,899			9,754			31,700			31,100
Non-interest income:
Fees for services to customers		469			427			420			414			421			1,316			1,237
ATM and debit card		691			705			636			687			685			2,032			2,048
Retail brokerage and advisory income		139			126			93			207			219			358			655
Net realized (loss) gain on investment securities		224			(1,096	)		377			(2,262	)		131			(495	)		185
Unrealized gain (loss) on equity securities		143			1,016			(30	)		904			(138	)		1,129			(654	)
Net gain on sale of loans		19			(2	)		15			11			4			32			5
Other		282			289			325			322			433			896			1,078
Total non-interest income		1,967			1,465			1,836			283			1,755			5,268			4,554
Non-interest expense:
Salaries and employee benefits		4,650			5,038			4,974			4,717			4,971			14,662			14,309
Net occupancy and furniture and equipment		1,531			1,481			1,515			1,477			1,504			4,527			4,348
Other		2,455			2,415			2,344			2,552			2,196			7,214			6,706
Total non-interest expense		8,636			8,934			8,833			8,746			8,671			26,403			25,363
Income before income taxes		4,299			3,009			3,257			1,436			2,838			10,565			10,291
Provision for income taxes		961			544			663			302			494			2,168			1,942
Net income	$	3,338		$	2,465		$	2,594		$	1,134		$	2,344		$	8,397		$	8,349

Share and Per Share Data:
Net income – basic	$	0.91		$	0.67		$	0.71		$	0.31		$	0.65		$	2.29		$	2.32
Net income – diluted	$	0.91		$	0.67		$	0.71		$	0.31		$	0.65		$	2.29		$	2.32
Book value	$	28.57		$	26.34		$	25.57		$	24.86		$	20.35		$	28.57		$	20.35
Cash dividends	$	0.37		$	0.37		$	0.37		$	0.37		$	0.37		$	1.11		$	1.11
Average common shares outstanding -basic		3,679,799			3,665,695			3,655,176			3,642,096			3,613,230			3,666,937			3,600,137
Average common shares outstanding -diluted		3,682,773			3,665,695			3,655,176			3,642,096			3,613,230			3,666,937			3,600,137
Selected Ratios:
Return on average assets		0.72	%		0.55	%		0.59	%		0.25	%		0.52	%		0.62	%		0.64	%
Return on average shareholders’ equity		8.13	%		6.14	%		6.53	%		2.83	%		5.88	%		6.95	%		7.13	%
Net interest margin (tax equivalent)		2.48	%		2.46	%		2.39	%		2.36	%		2.38	%		2.45	%		2.40	%
Efficiency ratio (tax equivalent)		65.28	%		73.26	%		72.73	%		82.38	%		71.59	%		70.28	%		72.55	%
Average shareholders’ equity to total average assets		8.80	%		8.97	%		8.98	%		8.93	%		8.91	%		8.92	%		9.01	%
Net loan charge-offs (recoveries)	$	25		$	12		$	21		$	(19	)	$	275		$	58		$	(219	)
Net loan charge-offs (recoveries) – annualized / Average loans excluding held-for-sale		0.01	%		0.00	%		0.01	%		-0.01	%		0.10	%		0.01	%		-0.03	%
Balance Sheet (Average)
Assets	$	1,856,034		$	1,798,040		$	1,778,585		$	1,779,627		$	1,773,138		$	1,811,051		$	1,737,417
Investment securities (AFS & Equities)		552,323			569,135			578,615			604,292			624,423			566,638			636,498
Loans receivable		1,158,731			1,139,874			1,108,836			1,072,616			1,039,170			1,135,898			1,029,042
Deposits		1,600,925			1,542,661			1,497,692			1,490,244			1,488,632			1,547,290			1,443,816
Shareholders’ equity		163,274			161,340			159,739			158,987			158,063			161,458			156,499

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Three Months Ended
	September 30, 2024								September 30, 2023
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	12,811			4.94	%	$	159	$	7,111			5.17	%	$	92
U.S. Government agencies		75,956			1.18			224		101,947			1.11			283
State and municipal		105,674			3.74			989		109,157			3.30			901
Mortgage-backed and CMOs		345,119			2.84			2,453		394,607			2.53			2,500
Corporate debt securities and mutual funds		8,804			5.97			131		6,648			4.40			73
Equities		3,959			4.61			46		4,953			4.70			59
Total investment securities		552,323			2.90			4,002		624,423			2.50			3,908
Loans:
Commercial real estate		819,091			5.60			11,525		722,833			5.10			9,288
Residential real estate		110,760			4.21			1,165		107,332			3.81			1,022
Home equity loans		66,239			6.84			1,138		57,694			6.65			967
Commercial and industrial		140,980			7.61			2,696		128,601			7.23			2,343
Consumer loans		3,613			7.75			70		3,823			7.53			73
Tax-exempt loans		18,305			3.88			179		19,630			3.59			178
Total loans, net of unearned income*		1,158,988			5.76			16,773		1,039,913			5.29			13,871
Other earning assets		95,780			5.43			1,307		62,420			5.48			862
Total earning assets		1,807,091			4.86			22,082		1,726,756			4.28			18,641
Cash and due from banks		15,540								15,679
Allowance for loan losses		(8,860	)							(8,396	)
Other assets		42,263								39,099
Total assets	$	1,856,034							$	1,773,138

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	356,763			1.00	%		898	$	319,335			0.74	%		600
Municipals		154,619			4.69			1,823		157,391			4.63			1,837
Money market		238,494			3.56			2,132		201,277			3.01			1,527
Savings		278,247			1.28			896		325,567			1.27			1,038
Time < $100		178,228			4.12			1,846		128,884			2.92			947
Time $100 through $250		152,416			4.64			1,777		106,920			3.69			996
Time > $250		49,506			4.61			573		43,856			3.41			377
Total interest-bearing deposits		1,408,273			2.81			9,945		1,283,230			2.26			7,322
Short-term borrowings		34,078			2.18			186		95,568			3.07			740
Long-term debt		30,000			4.75			364		20,000			4.36			222
Subordinated debt		13,716			9.42			323		—			—			—
Total interest-bearing liabilities		1,486,067			2.90			10,818		1,398,798			2.35			8,284
Non-interest-bearing deposits		192,652								205,402
Other liabilities		14,041								10,875
Shareholders’ equity		163,274								158,063
Total liabilities and
shareholders’ equity	$	1,856,034							$	1,773,138
Net interest rate spread					1.96	%							1.93	%
Margin/net interest income					2.48	%	$	11,264					2.38	%	$	10,357
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Nine Months Ended
	September 30, 2024								September 30, 2023
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	8,820			5.10	%	$	337	$	3,618			4.97	%	$	134
U.S. Government agencies		81,800			1.17			718		101,945			1.11			849
State and municipal		107,237			3.56			2,860		109,877			2.64			2,173
Mortgage-backed and CMOs		355,878			2.72			7,262		405,979			1.96			5,971
Corporate debt securities and mutual funds		7,416			5.78			321		6,637			4.41			219
Equities		5,487			3.87			159		8,442			4.07			257
Total investment securities		566,638			2.74			11,657		636,498			2.01			9,603
Loans:
Commercial real estate		798,714			5.47			32,701		700,375			4.79			25,091
Residential real estate		109,463			4.07			3,337		106,817			3.67			2,943
Home equity loans		64,700			6.83			3,307		57,317			6.44			2,762
Commercial and industrial		141,148			7.57			7,997		141,176			7.55			7,977
Consumer loans		3,679			7.78			214		3,942			7.15			211
Tax-exempt loans		18,410			3.86			532		19,984			3.53			527
Total loans, net of unearned income*		1,136,114			5.65			48,088		1,029,611			5.13			39,511
Other earning assets		61,999			5.45			2,530		27,195			5.67			1,153
Total earning assets		1,764,751			4.71			62,275		1,693,304			3.97			50,267
Cash and due from banks		13,880								14,046
Allowance for loan losses		(8,897	)							(8,871	)
Other assets		41,317								38,938
Total assets	$	1,811,051							$	1,737,417

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	337,632			0.89	%		2,243	$	314,012			0.52	%		1,227
Municipals		139,810			4.76			4,987		128,270			4.34			4,163
Money market		232,140			3.57			6,196		169,308			2.30			2,913
Savings		288,885			1.28			2,769		363,496			1.18			3,208
Time < $100		168,894			3.98			5,027		113,951			2.30			1,960
Time $100 through $250		141,156			4.53			4,790		104,697			3.42			2,676
Time > $250		50,855			4.49			1,709		36,590			2.80			767
Total interest-bearing deposits		1,359,372			2.72			27,721		1,230,324			1.84			16,914
Short-term borrowings		57,880			2.33			1,010		112,724			2.99			2,518
Long-term debt		26,058			4.63			918		14,267			3.98			430
Subordinated debt		4,605			9.35			323		—			—			—
Total interest-bearing liabilities		1,447,915			2.77			29,972		1,357,315			1.96			19,862
Non-interest-bearing deposits		187,918								213,492
Other liabilities		13,760								10,111
Shareholders’ equity		161,458								156,499
Total liabilities and
shareholders’ equity	$	1,811,051							$	1,737,417
Net interest rate spread					1.94	%							2.01	%
Margin/net interest income					2.45	%	$	32,303					2.40	%	$	30,405
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

MIL-OSI Submissions: Stats NZ information release: Household labour force survey estimated working-age population: September 2024 quarter

Source: Statistics New Zealand

Household labour force survey estimated working-age population: September 2024 quarter – information release – 2 October 2024 – The household labour force survey estimated working-age population table shows the population benchmarks used to produce household labour force survey estimates for the upcoming labour market statistics release.

Visit Statistics NZ’s website to read this information release:

Household labour force survey estimated working-age population: September 2024 quarter

MIL OSI –

MIL-OSI Submissions: Census results reflect Aotearoa New Zealand’s diversity – Stats NZ media and information release: 2023 Census population, dwelling, and housing highlights

Source: Statistics New Zealand

Census results reflect Aotearoa New Zealand’s diversity – media release – 3 October 2024 – Aotearoa New Zealand continues to become more culturally diverse, according to 2023 Census data released by Stats NZ today.

The 2023 Census showed that people living in Aotearoa New Zealand identified with a wide range of ethnicities – and spoke over 150 languages. Additionally, while most of the population were born here, New Zealand was also home to people born in a diverse range of countries.

“Just under 30 percent of New Zealanders were born overseas, and the census recorded well over 200 different birthplaces,” deputy government statistician and deputy chief executive insights and statistics Rachael Milicich said.

“Pretty much every part of the world is represented here, from people born in Iceland in the north, to Argentina in the south.”

Of the census usually resident population count, 3.5 million people were born in New Zealand and 1.4 million were born overseas.

Visit Statistics NZ’s website to read this news story and information release:

MIL OSI –

MIL-OSI Submissions: Home ownership increases and housing quality improves – Stats NZ media and information release: 2023 Census population, dwelling, and housing highlights

Source: Statistics New Zealand

Home ownership increases and housing quality improves – media release – 3 October 2024 – 2023 Census data shows home ownership has increased and housing quality has improved, according to statistics released by Stats NZ today.

Around two-thirds of households in Aotearoa New Zealand (1,175,217 or 66.0 percent) now own their home or hold it in a family trust, compared with 64.5 percent in 2018.

“This increase in home ownership, although small, is a reversal of the falling rates we have seen since home ownership peaked in the early 1990s,” Stats NZ principal analyst Rosemary Goodyear said.

Visit Statistics NZ’s website to read this news story and information release:

MIL OSI –

MIL-OSI Submissions: 2023 Census shows 1 in 20 adults belong to Aotearoa New Zealand’s LGBTIQ+ population – Stats NZ media and information release: 2023 Census population, dwelling, and housing highlights

Source: Statistics New Zealand

2023 Census shows 1 in 20 adults belong to Aotearoa New Zealand’s LGBTIQ+ population – media release – 3 October 2024 – Confidentialised data from the 2023 Census found that 172,383 people (4.9 percent of adults) belonged to the LGBTIQ+ (or Rainbow) population, according to data released by Stats NZ today.

LGBTIQ+ includes people who are lesbian, gay, bisexual, transgender, non-binary, intersex, or have other minority genders or sexual identities.

Gender, sex, and LGBTIQ+ concepts in the 2023 Census has further information. LGBTIQ+ status is derived for all usual residents aged 15 years and older who responded to the census.

The 2023 Census was the first census to collect data from New Zealanders about their gender, sexual identity, and whether they have a variation of sex characteristics.

“Census data is for everyone in Aotearoa New Zealand, so it is important that Rainbow communities can see themselves in the data for the first time. We thank those who have advocated for and contributed to the delivery of this data over the years,” deputy government statistician and deputy chief executive insights and statistics Rachael Milicich said.

Visit Statistics NZ’s website to read this news story and information release:

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MIL-OSI Submissions: Stats NZ information release: International migration: August 2024

Source: Statistics New Zealand

International migration: August 2024 – information release – 11 October 2024 – Key facts. Annual migration – Provisional estimates for the August 2024 year compared with the August 2023 year were:

migrant arrivals: 188,100 (± 1,100), down 17 percent
migrant departures: 134,300 (± 1,000), up 37 percent
annual net migration: gain of 53,800 (± 1,500), compared with a net gain of 127,700 (± 300).

The 134,300 migrant departures in the August 2024 year are, provisionally, the highest on record for an annual period.

Annual migrant arrivals provisionally peaked at 236,200 in the year ended October 2023.

Annual net migration provisionally peaked in the year ended October 2023, with a gain of 136,400.

Visit Statistics NZ’s website to read this information release and to download CSV files:

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MIL-OSI Submissions: Stats NZ information release: Electronic card transactions: September 2024

Source: Statistics New Zealand

Electronic card transactions: September 2024 – information release – 14 October 2024 – The electronic card transactions (ECT) series cover debit, credit, and charge card transactions with New Zealand-based merchants. The series can be used to indicate changes in consumer spending and economic activity.

Key facts
All figures are seasonally adjusted unless otherwise specified.

Values are at the national level and are not adjusted for price changes.

September 2024 month
Changes in the value of electronic card transactions for the September 2024 month (compared with August 2024) were:

spending in the retail industries was unchanged
spending in the core retail industries increased 0.3 percent ($19 million).

Visit Statistics NZ’s website to read this information release and to download CSV files:

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MIL-OSI New Zealand: Health – New Zealand should heed UK concerns with physician associates, invest in growing workforce

Source: General Practice Owners Association of Aotearoa New Zealand

New Zealand should heed British concerns with physician associates and invest in growing the number of GPs, rather than spending time and money writing regulations to create a lesser role.

“It’s telling that the British Medical Association (BMA) committee voted in favour of stopping hiring physician associates in general practice, and for existing roles to be phased out,” said Dr Angus Chambers, Chair of General Practice Owners Association of Aotearoa New Zealand.

The British vote came on the same day that New Zealand doctors, nurses, practice owners and their professional bodies called on the government to pause regulation of physician associates to fill workplace shortages.

“Similar concerns are being aired in Britain and New Zealand because physician associates are a distraction from focussing on the root problems in our primary health system – underfunding, which results in under resourcing due to insufficient retention and recruitment.

That’s why GPs are retiring, general practices are closing, reducing their services, and exiting after-hours care. And that’s why patients are waiting weeks for appointments, can’t enrol with their local GP, and hospital emergency departments have long wait times.

“Writing regulations to support the establishment of physician associates is a political diversion from tacking these fundamental problems.

“GenPro doesn’t want to criticise the work of physician associates, many of whom contribute to general practice patient care, but is frustrated by the government’s willingness to support PA regulations when it is doing nothing to help fix the broken funding model impacting patient care in our communities.

“GenPro supports a multi-disciplinary approach to patient care and recognises the crucial roles that different staff perform. This is not about job patch protection as some claim, but we are concerned at the government choosing to invest now in this nascent workforce, rather than in GPs, which are in crisis.

“This short-term approach appeals because it gives the appearance of driving down costs, but is instead a diversion from the importance of supporting general practices, which contribute more in the long term through, for example, reducing demands on hospitals.

“The government should focus on properly funding general practice so we can rebuild our depleted and over-stretched work force, rather than wasting time and money on regulating a new profession when there is a fit-for-purpose existing solution.

“The government must as a matter of urgency increase its support of primary healthcare, overhaul the current out-of-date funding model, and help increase the supply of medical professionals into primary healthcare,” said Dr Chambers.

GenPro, which represents about half of all general practices in Aotearoa, is ready to work with the Minister of Health and the Health NZ Commissioner to develop the solutions needed.

Read the Arawhata Wetland decision report https://www.epa.govt.nz/fast-track-consenting/referred-projects/arawhata-wetland/the-decision/

MIL-OSI New Zealand: Environment – Arawhata wetland granted fast-track consent – EPA

Source: Environmental Protection Authority

An independent panel has granted resource consent, subject to conditions, to create and maintain a wetland in the Arawhata Stream catchment of Lake Horowhenua.

Manawatū-Whanganui Regional Council applied for resource consent under the COVID-19 Recovery (Fast-track Consenting) Act 2020.

The project includes restoration of previously drained natural wetlands on 119 hectares of land in the Arawhata Stream catchment of Lake Horowhenua. It is designed to filter phosphorus that is bound to sediment. It will also reduce the concentrations of nitrogen in the ground and surface water before it reaches the lake.

The resource consent conditions are in the decision report on the page linked below.

The decision comes 150 working days after the application was lodged with the Environmental Protection Authority.

The Environmental Protection Authority is not involved in the decision-making. We provide procedural advice and administrative support to the panel convenor, Judge Laurie Newhook, and the expert consenting panel he appoints.

MIL-OSI New Zealand: Defence News – Manawanui update – Two containers successfully removed from reef, work in progress to remove the third

Source: New Zealand Defence Force

Manawanui update – Two containers successfully removed from reef, work in progress to remove the third:

Two containers have been removed, one carrying food and the other empty.

The food was safely buried at a landfill. The two containers were taken to a biosecurity compound at the port for safe disposal. The remaining container is empty.

“The teams on the ground have been working since this morning’s high tide to float and tow the third container to shore,” says NZDF Senior National Representative Commodore Andrew Brown.

“However, conditions are challenging, with strong currents and winds making the task especially difficult.”

“The container is also damaged, which makes it less buoyant than the others.”

“The work will continue tonight, and we are able to work on this tomorrow, if necessary, in agreement with the Samoan authorities.”

“Safety is paramount. We need to proceed with care and keep people safe.”

During CHOGM we will continue to monitor the vessel and shoreline.

MIL-OSI New Zealand: First Responders – Waikato wetland fire update #4

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand crews are continuing to battle a large vegetation fire in scrub and wetlands near Meremere in North Waikato.

Incident Commander Mark Tinworth says the fire now has a perimeter of 10 kilometres, and has burned through around 477 hectares in the Island Block area, including the Whangamarino wetlands.

“It’s continuing to spread through the wetlands, but it’s not threatening any residential or commercial properties at present,” he said.

“Island Block Road is now closed to all except for emergency vehicles and residents, so we urge people to avoid the area if they can.

“There’s a lot of smoke coming off the burning areas, and we advise people to keep car doors and windows shut if they have to drive near the area.”

The Whangamarino wetland is a Department of Conservation area of environmental significance. Fire and Emergency is working collaboratively with the Department of Conservation and mana whenua to ensure cultural and environmental values are considered in firefighter tactics.

“We’re working really hard to contain it as quickly as possible, but we are expecting it to take another day or so to bring it under control,” Mark Tinworth said. “This is a really beautiful part of the country with considerable environmental value, and we’re doing our best to prevent it from being destroyed.”

Fire and Emergency is also working alongside local businesses to make sure they have plans in place for removing any dangerous material if the fire gets too close to those locations.

Fire and Emergency New Zealand was alerted to the fire off Island Block Road around 1.15pm on Monday, and fire crews are being supported by eight helicopters, two fixed-wing aircraft, and around 40 personnel.

Water for the fire trucks and helicopter buckets was temporarily sourced from the local reticulated supply, but is now being sourced from a pond on a local farm.

Fire investigators are at the site today and the origin and cause of the fire are yet to be confirmed.

MIL-OSI New Zealand: Federated Farmers – Government intervenes to stop out-of-control councils

Source: Federated Farmers

Federated Farmers says the Government stepping in to stop regional councils from notifying new freshwater regulations is a win for both farmers and common sense.

“Regional councils have been totally out of control pushing ahead with expensive and impractical new freshwater rules,” says Federated Farmers vice president Colin Hurst.

“It has never made any sense for councils to rush through these rules before the new National Policy Statement for Freshwater Management (NPS-FM) has been put in place.

“The Government stepping in and intervening is a pragmatic move that will be welcome news for farmers and ratepayers across the country.”

Hurst says Federated Farmers has been incredibly vocal in calling for the Government to stop councils notifying these new rules.

“This is a huge win for Federated Farmers and our members across the country,” Hurst says.

“Councils have been pouring ratepayers’ money down the drain working on these new rules when they know all too well there are changes coming.

“It makes much more sense to wait for changes to both the NPS-FM and the Resource Management Act to be finalised.

“Last month we wrote to Environment Minister Penny Simmonds and recommended that Section 80A of the RMA should be amended to prevent councils from notifying new freshwater regional regulations and policy statements.

“Farmers up and down the country will be breathing a deep sigh of relief this afternoon, because the Government have done just that.”

Hurst says this means no more unworkable rules or regulations will be imposed on farmers by regional councils until the Government has clarified the law.

He says the announcement comes just in time to stop Otago Regional Council, who are due to meet tomorrow to vote on whether they will notify a new land and water plan.

“These changes have arrived just in time to prevent them from doing so.

“Federated Farmers has led the charge in Otago calling for the regional council to be transparent about the true costs and implications of their plan.

“That advocacy seems to have been a real catalyst for action that will have far-reaching implications for other communities.

“This change introduced to Parliament today will prevent regional councils across the country from notifying regional plans and regional policy statements that give effect to the unworkable NPS-FM 2020.”

In the Government’s announcement today, it said it will move to add an amendment to the Resource Management Act Amendment Bill, currently before Parliament, which will restrict councils’ ability to notify freshwater plans before the gazettal of the replacement NPS-FM.

MIL-OSI New Zealand: Activist News – Will Christchurch become first New Zealand city to sanction Israel? – PSNA

Source: Palestine Solidarity Network Aotearoa

Tomorrow morning (Wednesday 23 October) Christchurch City Council is due to vote on a resolution to amend its procurement policy to exclude companies building and maintaining illegal Israeli settlements in the occupied Palestinian territories.

The resolution was proposed by PSNA in a presentation to council in June and a positive recommendation is finally coming to council tomorrow.

The details of the agenda item are on Pages 13 to 23 here: Agenda of Finance and Performance Committee – Wednesday, 23 October 2024

“We are delighted the council is to consider this motion tomorrow” says PSNA National Chair John Minto. “If it passes Christchurch will be the first city in New Zealand to end Israeli impunity for war crimes” (Building settlements on occupied land belonging to others is a war crime under international law)

The motion would bring council policy in line with UN Security Council resolution 2334 which was co-sponsored by a previous National government in 2016. It will also mean Christchurch will be the first city council in the country to adopt the policy (Environment Canterbury voted in this policy earlier this year).

“Today Israel is running riot across the Middle East because it has never been held to account for 76 years of flagrant breaches of international law,” says Minto.

“The motion is a small but significant step in sanctioning Israel. Many more steps must follow”.

PSNA National Chair John Minto and University of Canterbury lecturer Josephine Varghese will be speaking to councillors in support of the motion at around 9.40am backed up with supporters in the public gallery.

We hope the media will report this important development in holding Israel to account.

John Minto

National Chair

Palestine Solidarity Network Aotearoa

MIL-OSI New Zealand: Employment Disputes – PSA members ready to support nationwide hui opposing Government’s anti-worker agenda – PSA

Source: PSA

PSA members will join thousands of workers to take part in nationwide hui on Wednesday 23 October 2024t o fight back against government policies that undermine workers’ rights and Te Tiriti o Waitangi Hui are being held in 13 centres across the country, and will be attended by workers from across a wide range of sectors.

National Secretary Duane Leo says the Public Service Association Te Pūkenga Here Tikanga Mahi fully supports the October 23 Fight Back Together hui across the motu, alongside other unions.

“PSA members have been on the receiving end of attacks from the coalition Government, which have led to mass layoffs, cuts to services we all rely on, and relentless attacks on Te Tiriti and Māori rights,” Leo says.

The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central and local government, the health sector and community organisations.

“PSA members come to work every day to make a difference. We help deliver the community, local government, health and public services that keep Aotearoa running. These services ensure everyone gets the support they need to live healthy, safe and empowered lives – not just those who can afford to pay.

“Government cuts and unprecedented attacks on the services we provide are doing long term damage and risk eroding public faith in these services.

“Workers who keep their jobs are shouldering additional workloads. This has health and safety impacts as well as threats to service delivery.

“Cutting the jobs and livelihoods of thousands of New Zealanders, scrapping fair pay agreements, reintroducing 90-day trials, and hiring freezes across the health system make this the most anti-worker government we’ve seen in decades.

“It’s time to fight back together against the Government’s cuts and attacks on Te Tiriti and to fight back together for better investment in public health, community and local government services,” Leo says.

The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central and local government, the health sector and community organisations.