NewzIntel.com

Category: Americas

  • MIL-OSI USA: Gallego Announces Over $31 Million in Water Funding Coming to Arizona

    Source: United States House of Representatives – Representative Ruben Gallego (AZ-07)

    October 23, 2024

    PHOENIX – Today, Rep. Ruben Gallego (AZ-03) announced $31,623,000 in funding from the Bipartisan Infrastructure Law is coming to Arizona for clean water and drinking water projects.

    “In Arizona, we know that securing our water future is vital to our continued success. That’s why I proudly voted for the Bipartisan Infrastructure Law,” said Rep. Gallego. “I’m glad to have secured the funding announced today, which will help ensure Arizonans have access to safe, clean water.”

    Of the $31 million, $18,258,000 will go to the Clean Water State Revolving Fund for water quality and infrastructure projects and $13,365,000 will go to the Drinking Water State Revolving Fund to maintain healthy drinking water.

    Today’s announcement builds on Rep. Gallego’s work to secure Arizona’s water future, including:

    You can learn more about Rep. Gallego’s work in his report: Securing Arizona’s Water Future.

    MIL OSI USA News –

  • MIL-OSI USA: Ciscomani, Chairman Bost Attend Veteran-Focused Events in AZ06

    Source: United States House of Representatives – Congressman Juan Ciscomani (Arizona)

    ARIZONA 6th – U.S. Congressman Juan Ciscomani (AZ-06) and House Committee on Veterans’ Affairs Chairman Mike Bost (IL-12) attended several veterans-focused events in Arizona’s 6th Congressional district, which is home to over 70,000 veterans.  

    The events included hosting a quarterly meeting with Ciscomani’s Veterans Advisory Council, touring Northstar Neurology’s facilities, attending the Cochise County Veteran StandDown Resource Fair, discussing Cochise College’s Military and Veteran Serving Program, and attending the Fort Huachuca Quarterly Installation Retirement Ceremony. 

    “As the Representative to over 70,000 veterans that call Arizona’s 6th district home, it is my duty and honor to advocate on their behalf and ensure their needs are prioritized by the federal government,” said Ciscomani. “I am grateful to Chairman Bost for his leadership and taking the time to talk directly with veterans in my district. I will continue to push for legislation, funding, and other efforts that provide comprehensive healthcare, mental health support, educational opportunities, and employment resources to our veterans to empower them to transition successfully into civilian life.” 

    “As Chairman of the House Committee on Veterans’ Affairs, I was honored to visit with my friend and colleague Rep. Juan Ciscomani in Arizona’s sixth congressional district last week to meet with his veteran community,” said Chairman Bost. “We visited with veterans from all walks of life, including veterans from the Cochise community, and veterans’ survivors to see firsthand how Arizona is leading the way to get veterans and their family’s access to the economic opportunities, education, and outside-the-box mental health support and resources they have earned. House Republicans will continue pushing to cut through the red tape and open more doors for veterans and transitioning active-duty servicemembers across the country. It goes without saying that veterans in southeastern Arizona have no better advocate than my friend, Rep. Ciscomani, fighting for them every day in DC on the issues that matter most to them.” 

    Veterans Advisory Council 

    Ciscomani, Bost hosted a quarterly meeting with Ciscomani’s Veteran Advisory Council, which is chaired by Maj. Gen. Don Shepperd (Ret.) and is comprised of veterans from the U.S. Marine Corps, U.S. Air Force, U.S. Army, and U.S. Navy. The council has identified specific areas of focus, which include which include veterans’ transition into civilian life, access to housing, mental health and suicide prevention, and workforce and education opportunities. 

    Tour of Northstar Neurology 

    Ciscomani and Bost toured Northstar Neurology, a treatment facility in Tucson founded in 2017 that provides critical help to veterans suffering with a traumatic brain injury or PTSD.  

    Cochise County Veteran StandDown Resource Fair  

    Ciscomani, Bost, and Congressman Tony Gonzales (TX-23) attended the Cochise County Veteran StandDown Resource Fair to speak directly with veterans about the most pressing issues they face and share resources Ciscomani’s office can offer to veterans.  

    Cochise College Military & Veteran Serving Program 

    Ciscomani, Bost visited Cochise College to discuss their Military and Veteran Serving Program and strong partnership with Fort Huachuca to assist active-duty members and veterans and the two new Baccalaureate programs. 

    Fort Huachuca Quarterly Installation Retirement Ceremony 

    Ciscomani, Bost attended Fort Huachuca Quarterly Installation Retirement Ceremony to celebrate military retirees.  

    Background: 

    In his freshman term in office, Congressman Ciscomani, who is a member of the House Committee on Veterans’ Affairs, has introduced ten pieces of veterans-focused legislation. These include:  

    • The VET-TEC Authorization Act of 2023 (H.R. 1669) which extends a popular program that covers costs for veterans seeking job training in high-tech industries.  

    • The VETS Opportunity Act (H.R. 7896), to expand veterans’ access to educational opportunities for in-demand skilled trade and vocational programs.   

    • The VET MEDS Act (H.R. 5470) to extend the VA’s authority to allow certain healthcare providers to conduct exams across state lines.    

    • The Veterans’ Appeals Backlog Improvement Act (H.R. 1378) to reduce wait times for veterans seeking disability claims and ensure they are processed faster.   

    • The Prioritizing Veterans’ Survivors Act (H.R. 7100) to move the Office of Survivors Assistance (OSA) back within the Office of the VA Secretary. This move ensures that OSA has direct access to the Secretary to fix policy and program-wide problems. 

    • The Rural Veterans’ Benefit Improvement Act (H.R. 8881) to ensure veterans have permanent, cross-state access to certified healthcare providers for disability claim exams.   

    • The Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act (H.R. 8371), which will be the flagship veterans’ package for the 118th Congress. It includes a number of bipartisan and bicameral proposals to reform and improve the delivery of healthcare, benefits, and services at the Department of Veterans Affairs (VA) for veterans, their families, and their survivors. This includes your effort to reauthorize the VET-TEC program.    

    • The Expanding Access for Online Veterans Student Act (H.R. 5702), which increased housing stipends for student veterans attending classes online.    

    • The Veteran Exam Expansion Act (H.R. 5938), which expands the pool of providers eligible to cross state lines when conducting disability exams for veterans.   

    • The Coordinating Care for Senior Veterans and Wounded Warriors Act (H.R. 9399) to improve healthcare coordination and management for veterans who receive services through Medicare and the Department of Veteran Affairs (VA).   

    Through casework, the Congressman’s team has returned over $5 million to constituents, including $1.9 million to the veterans of Arizona’s 6th Congressional District. This is money and benefits that were owed to constituents but were stuck in the bureaucracy of a federal agency. 

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    MIL OSI USA News –

  • MIL-OSI USA: Baldwin Announces $86 Million for Clean and Safe Drinking Water in Wisconsin Through Bipartisan Infrastructure Law

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WISCONSIN – Today, U.S. Senator Tammy Baldwin (D-WI) announced Wisconsin is receiving an additional $86 million through her Bipartisan Infrastructure Law to upgrade water infrastructure and ensure communities have access to clean and safe drinking water. The funding will help communities across Wisconsin protect local freshwater resources, replace dangerous lead pipes, address PFAS and other contaminants, and deliver safe drinking water to homes, schools, and businesses.

    “No matter your zip code, every Wisconsin family should be confident when they turn on the tap, their drinking water is clean and safe. Our Bipartisan Infrastructure Law is replacing dangerous lead pipes, protecting families from dangerous chemicals like PFAS, and delivering clean water to homes, schools, and businesses in every corner of the Badger State. I’m proud to help deliver this investment for Wisconsin families’ health and future,” said Senator Baldwin.

    “Wisconsinites deserve to be able to trust that the water coming from their tap is clean and safe to drink,” said Wisconsin Governor Tony Evers. “Thanks to the hard work of Senator Baldwin and the Biden-Harris Administration’s Investing in America Agenda, these investments will help us build upon our work to improve our state’s water infrastructure, get rid of harmful contaminants like PFAS and lead, and make a real difference for folks and families across our state.”

    The Baldwin-backed Bipartisan Infrastructure Law funds will flow through Wisconsin’s Clean Water and Drinking Water State Revolving Funds (CWSRF and DWSRF), a long-standing federal-state water investment partnership. The investment will fund state-run, low-interest loan programs that address key challenges in financing water infrastructure. Today’s announcement includes allotments for Bipartisan Infrastructure Law Clean Water General Supplemental funds for Wisconsin ($67,272,000), Emerging Contaminant funds ($5,807,000), and ($13,082,000) under the Drinking Water Emerging Contaminant Fund.

    Senator Baldwin secured key provisions of her Made in America Act in the Bipartisan Infrastructure Law, ensuring that American iron and steel are used in the construction of the water infrastructure under the CWSRF and DWSRF. In addition to today’s funding announcement, Wisconsin has so far received over $330 million for water infrastructure under the Bipartisan Infrastructure Law.

    More information about this announcement is available here. 

    MIL OSI USA News –

  • MIL-OSI USA: Senator Baldwin Leads Senate Resolution Designating October 23 National Marine Sanctuary Day

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) introduced a Senate Resolution designating October 23, 2024 as “National Marine Sanctuary Day.” The resolution highlights the role of national marine sanctuaries in increasing access to nature, protecting biodiversity, and boosting economic activity for coastal communities.

    “Wisconsin Shipwreck Coast National Marine Sanctuary is an engine for tourism and world-class research along Lake Michigan, stimulating our local economies and pioneering breakthroughs for our Great Lakes,” said Senator Baldwin. “I’m proud to have fought for and delivered a national marine sanctuary for Wisconsin, and will continue to fight to protect our nation’s natural resources and ensure generations to come can enjoy our coastlines.”

    Senator Baldwin has fought to support national marine sanctuaries, successfully leading the charge to bring a National Marine Sanctuary to Wisconsin in 2021. In October 2013, Senator Baldwin urged the National Oceanic and Atmospheric Administration (NOAA) to re-open the public nomination process for marine sanctuaries for the first time in 20 years. After the Administration announced in June 2014 that Americans would be given the opportunity to nominate nationally significant marine and Great Lakes areas as national marine sanctuaries, Wisconsin’s Lake Michigan proposal was submitted and Senator Baldwin called on NOAA to support their efforts. The Wisconsin Shipwreck Coast National Marine Sanctuary was officially designated in 2021.

    As a member of the Senate Appropriations Committee, Senator Baldwin has continued to advocate for Wisconsin’s Great Lakes by supporting robust funding for the National Marine Sanctuaries Program and by requesting federal funding for the Wisconsin Shipwreck Coast National Marine Sanctuary Foundation.

    The resolution is co-sponsored by Senators Richard Blumenthal (D-CT), Maria Cantwell (D-WA), Ben Cardin (D-MD), Martin Heinrich (D-NM), Mazie Hirono (D-HI), Patty Murray (D-WA), Alex Padilla (D-CA), Brian Schatz (D-HI), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), Peter Welch (D-VT), Cory Booker (D-NJ), and Gary Peters (D-MI).

    The resolution is supported by Alabama Coastal Foundation, Azul, California Academy of Sciences, Carolina Ocean Alliance, Creation Justice Ministries, EarthEcho International, The Florida Aquarium, Friends of the Mariana Trench, Global Rewilding Alliance, Greater Farallones Association, GreenLatinos, Guy Harvey Foundation, Healthy Ocean Coalition, Inland Ocean Coalition, Minorities in Shark Sciences, Monterey Bay Aquarium, National Aquarium, National Ocean Protection Coalition, National Wildlife Federation, Next 100 Coalition, Ocean Defense Initiative, Point Defiance Zoo & Aquarium + Northwest Trek Wildlife Park, Shark Stewards, Shedd Aquarium, South Carolina Aquarium, Surfrider Foundation, Sustainable Ocean Alliance, The Ocean Project, WILDCOAST, Wildlife Conservation Society, and World Ocean Day.

    “National marine sanctuaries are special places in America’s waters where people show up as part of the solution to steward our blue planet,” said Joel R. Johnson, President and CEO of the National Marine Sanctuary Foundation. “From the Great Lakes to the Gulf of Mexico, the Chesapeake Bay to Pacific Islands, national marine sanctuaries connect us with wildlife and our shared history making us feel like we are part of something much greater than ourselves. Our continued support for these treasured waters is more essential than ever and makes a positive impact for present and future generations.”

    “The conservation of our special ocean and Great Lakes places is vital for the species that depend on them, the communities that rely on them, and the future generations that dream about them,” said Ayana Melvan, Director of Conservation Action of the Aquarium Conservation Partnership.

    “The ACP and its members strive to celebrate the science and stories of our National Marine Sanctuary System at every opportunity. We’re proud to stand behind the Senator’s resolution to recognize the 600,000 sq. miles and growing of marine and Great Lake waters that truly make America beautiful,” said Kim McIntyre, Executive Director of the Aquarium Conservation Partnership.

    A full version of this resolution is available here and below.

    Designating October 23, 2024, as “National Marine Sanctuary Day”.

    Whereas, on October 23, 1972, the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.) became law and ushered in a new era of ocean conservation;

    Whereas the National Marine Sanctuary System is a nationwide network that conserves spectacular oceans, coasts, and Great Lakes;

    Whereas communities across the United States can nominate their most treasured marine and Great Lakes waters for consideration as national marine sanctuaries;

    Whereas national marine sanctuaries protect biodiversity, safeguard extraordinary seascapes, historic shipwrecks, and sacred cultural places, and provide abundant recreational opportunities;

    Whereas national marine sanctuaries seek opportunities to partner with indigenous governments and communities to achieve shared conservation goals and to support the care-taking of ecological resources and cultural sites of indigenous peoples;

    Whereas national marine sanctuaries protect vital habitats for countless species of fish and wildlife, including many species that are listed as threatened or endangered;

    Whereas the conservation of marine ecosystems is vital for healthy oceans, coasts, and Great Lakes, for addressing climate change, and for sustaining productive coastal economies;

    Whereas the National Marine Sanctuary Foundation and its partners work to protect and nurture the growth of the National Marine Sanctuary System;

    Whereas national marine sanctuaries increase access to nature for all, support coastal communities, and generate billions of dollars annually in local communities by providing jobs in the United States, supporting commercial, Tribal, and recreational fisheries, bolstering tourism and recreation, engaging businesses in stewardship, and driving the growth of the blue economy;

    Whereas national marine sanctuaries connect people and communities through science, education, United States history, recreation, and stewardship and inspire community-based solutions that help individuals understand and protect the spectacular underwater habitats, wildlife, archaeological resources, and cultural seascapes of the United States;

    Whereas national marine sanctuaries are living laboratories that enable cooperative science and research that improves resource management and advances innovative public-private partnerships;

    Whereas national marine sanctuaries can help make oceans, coasts, and Great Lakes more resilient by protecting ecosystems that sequester carbon, by safeguarding coastal communities from flooding and storms, and by protecting biodiversity;

    Whereas the United States is a historic maritime Nation, and oceans, coasts, and Great Lakes are central to the way of life of the people of the United States;

    Whereas engaging communities as stewards of these protected waters makes national marine sanctuaries unique and provides a comprehensive, ecosystem-based, highly participatory approach to managing and conserving marine and Great Lakes environments for current and future generations; and

    Whereas October 23, 2024, is recognized as “National Marine Sanctuary Day” to increase awareness about the importance of the National Marine Sanctuary System and healthy oceans, coasts, and Great Lakes and to celebrate the many recreational opportunities available for the enjoyment of this network of protected waters: Now, therefore, be it

    Resolved, That the Senate—

    (1) designates October 23, 2024, as “National Marine Sanctuary Day”;

    (2) encourages the people of the United States and the world to responsibly visit, experience, recreate in, and support the treasured national marine sanctuaries of the United States;

    (3) acknowledges the importance of national marine sanctuaries in supporting community resilience, protecting biodiversity, and increasing access to nature;

    (4) recognizes the importance of national marine sanctuaries for their recreational opportunities and contributions to local and national economies across the United States;

    (5) celebrates the ability of the National Marine Sanctuary System to protect nationally significant places in oceans, coasts, and Great Lakes;

    (6) calls on the National Oceanic and Atmospheric Administration to partner with communities and to complete designations of new national marine sanctuaries; and

    (7) encourages Federal agencies to balance priorities and work together to support the priorities of the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1401 et seq.).

    MIL OSI USA News –

  • MIL-OSI USA: Baldwin Calls on Biden Administration to Investigate China’s Role in Fueling the Fentanyl Crisis

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) called on the Biden Administration to hold the People’s Republic of China (PRC) accountable for its role in actively supporting the production and export of fentanyl into the United States. Baldwin urged the Biden administration to heed the call from a group of families whose loved ones died of fentanyl overdoses and launch a formal probe into China’s role in fueling the U.S. synthetic opioid crisis.

    “I have heard from parents who have lost children, law enforcement fighting on the front lines, and advocates urging for change – all demanding we do more to stop the scourge of fentanyl. There is no doubt that the actions of the PRC have left hundreds of thousands of Americans dead and countless families in mourning,” wrote Senator Baldwin in a letter to USTR Representative Tai.

    Last week, a group of families impacted by the fentanyl crisis filed a petition under Section 301 of the Trade Act of 1974 to call on United States Trade Representative (USTR) Katherine Tai to initiate a full investigation into China’s  role in the fentanyl crisis. Over the past two decades, the PRC has become one of the most significant global centers for the manufacture, purchase, and exportation of illicit drugs and precursor chemicals. According to the petition filed by the families impacted by fentanyl, over 97 percent of all illicit fentanyl present in the U.S. originates from the PRC. The petition recommends a variety of trade countermeasures, including imposing tariffs on at least $50 billion on Chinese goods and services, and banning Chinese shipments from entering the U.S. via the de minimis loophole.

    “Despite the U.S. government’s best efforts through diplomatic channels, it has become obvious that the PRC will not voluntarily crack down on its fentanyl producers and exports. Until the PRC takes serious action to hold its own companies accountable, I urge you to seek redress for the harm inflicted upon American families. I therefore urge you to expeditiously initiate a full Section 301 investigation and consider the relief measures identified in the petition to address the injury that the PRC’s policies and actions have had on the American people and our economy,” wrote Senator Baldwin.

    Senator Baldwin has long been fighting to combat the fentanyl and opioid crisis, disrupting supply chains and bolstering support for prevention and recovery services. Senator Baldwin introduced the bipartisan Ensure Accountability in the De Minimis Act to hold countries like China accountable for sending hundreds of billions of dollars’ worth of products into the U.S. market, undermining U.S. manufacturers and letting illicit substances into our communities. Last year, Senators Baldwin and Bill Cassidy, M.D. (R-LA) introduced the De Minimis Reciprocity Act to close the de minimis loophole by excluding untrustworthy countries like China from using the de minimis channel.

    A full version of the letter is available here and below.

    Dear Ambassador Tai,

    I write to express support for a petition filed under Section 301 of the Trade Act of 1974 on behalf of families who have lost loved ones to illicit fentanyl. I ask that you review the petition and initiate a full investigation into the role of the People’s Republic of China (PRC) in the fentanyl crisis, which is devastating families and the U.S. economy.

    While Congress and the Administration have worked to hold China accountable and secure commitments from the PRC, the petition alleges that the PRC continues to actively support the production and export of illicit fentanyl to the United States and has failed to implement sufficient measures to prevent these exports. We have a responsibility to use every tool available to halt the flow of fentanyl into the United States. For that reason, I urge you to take up an investigation to examine the PRC’s acts, policies, and practices that have caused severe economic harm to the United States—to say nothing of the tragic deaths of hundreds of thousands of Americans—and consider appropriate countermeasures. As described in the petition, the economic impacts of the fentanyl crisis include undermining U.S. employment and the labor market. The need for supportive services and criminal justice expenditures also put increased pressure on state and local government budgets.

    Over the past two decades, the PRC has become one of the most significant global centers for the manufacture, purchase, and exportation of illicit drugs and precursor chemicals. According to the petition filed by Facing Fentanyl, Inc., over 97 percent of all illicit fentanyl present in the U.S. originates in the PRC. Illicit synthetic fentanyl can be produced incredibly cheaply; one kilogram can be produced for less than $1,000 and sold for $80,000. Despite its low production cost, it is 50 times stronger than heroin.

    Illicit synthetic fentanyl has been the deadliest of drugs exported by the PRC, leading to the deaths of over 70,000 Americans in 2022. In Wisconsin, synthetic opioids were identified in 91 percent of opioid overdose deaths and 73 percent of all overdose deaths in the past year. Early data indicates that the number of fentanyl deaths grew by 97 percent between 2019 and 2021. In 2022, more than 1,400 Wisconsinites died from an opioid overdose.

    While the U.S. government is actively engaging with the PRC on this issue, it is imperative that we hold China accountable for its commitment to cracking down on the flow of illicit fentanyl and precursor chemicals that are fueling this crisis. Despite productive steps, the PRC has continued to provide tax incentives and other financial support for businesses – often state-owned – that export fentanyl and the illicit chemicals necessary to produce fentanyl to the U.S and countries in the Western hemisphere. The PRC has impeded investigations and prosecutions that seek to stop illicit drug manufacturers while willfully failing to identify and prosecute companies from manufacturing, selling, and exporting fentanyl to the U.S. Furthermore, the PRC conceals business operations involved in fentanyl trade and ignores money laundering schemes by companies that profit from illicit activities.

    I have heard from parents who have lost children, law enforcement fighting on the front lines, and advocates urging for change – all demanding we do more to stop the scourge of fentanyl. There is no doubt that the actions of the PRC have left hundreds of thousands of Americans dead and countless families in mourning. Despite the U.S. government’s best efforts through diplomatic channels, it has become obvious that the PRC will not voluntarily crack down on its fentanyl producers and exports. Until the PRC takes serious action to hold its own companies accountable, I urge you to seek redress for the harm inflicted upon American. I therefore urge you to expeditiously initiate a full Section 301 investigation and consider the relief measures identified in the petition to address the injury that the PRC’s policies and actions have had on the American people and our economy.

    Thank you for your attention to this serious matter, and I look forward to continuing to work with you to halt the flow of deadly fentanyl into the United States.

    Sincerely,

    MIL OSI USA News –

  • MIL-OSI USA: QUIGLEY, SORENSEN, DURBIN, DUCKWORTH, ANNOUNCE $33.5 MILLION IN FEDERAL FUNDING FOR PEORIA AND CHICAGO AIRPORTS

    Source: United States House of Representatives – Representative Mike Quigley (IL-05)

    Today, U.S. Representatives Mike Quigley (D-IL-05), Eric Sorensen (D-IL-17) and U.S. Senators Dick Durbin (D-IL), and Tammy Duckworth (D-IL) announced $33,510,000 in federal funding from the Department of Transportation’s Airport Terminal Program.

    With today’s announced funding, General Wayne A. Downing Peoria International Airport will receive $13,510,000 for the replacement of their air traffic control tower, and Chicago O’Hare International Airport will receive $20,000,000 for an expansion to Terminal 5.

    “Throughout my career, I have worked tirelessly to ensure that travelers receive the best and most efficient service possible at O’Hare. Today’s funding announcement will build on the progress we have already made. This expansion will benefit not only our constituents but also travelers across the country, while boosting our economy. When I voted for the Bipartisan Infrastructure Law, I did so knowing it would bring vital investments like these and create lasting benefits across our state. Together, we are paving the way for a brighter future and a stronger transportation network for everyone,” said Quigley.

    “By improving and modernizing airport infrastructure, we are laying the foundation for increased connectivity and reliability,” said Durbin. “Today’s announced federal funding for upgrading our airports across Illinois will enhance the travel experience for passengers and promote economic growth. I will continue working with Senator Duckworth and our Congressional colleagues to ensure Illinois airports have the necessary federal resources to keep passengers safe and connected.”

    “Illinois’s airports are critical economic engines for our state,” Duckworth said. “This funding will help improve and modernize O’Hare and Downing International Airports and, after years of neglecting our nation’s infrastructure, I’m proud every day to see the Bipartisan Infrastructure Law at work rebuilding infrastructure all across our country. I will continue to work alongside Senator Durbin and the Illinois delegation to make traveling safer and more reliable for all passengers while ensuring that our communities are receiving the much-needed federal resources they deserve.”

    “This important funding coming to Peoria International Airport is about connecting my neighbors in Central Illinois to the world. The new air traffic control tower will allow controllers to see the end points of both runways and all taxiways, making it safer for travelers and airport staff. I am grateful to Senators Durbin and Duckworth for their support of this project as we continue our work to keep air travel safe and open Peoria to new destinations,” said Sorensen.

    Durbin and Duckworth previously worked to secure a provision in the Bipartisan Infrastructure Law (BIL) to make Peoria’s airport-owned air traffic control tower (ATCT) eligible for federal funding. Following the enactment of the Bipartisan Infrastructure Law, the ATCT has received $29 million in federal funding across two previous grants.

    Durbin and Duckworth helped secure two previous BIL Airport Terminal Program grants for Chicago O’Hare International Airport for the Terminal 3 Project totaling $90 million, a 2023 grant of $50 million and a 2024 grant of $40 million.

    MIL OSI USA News –

  • MIL-OSI USA: Newhouse Introduces Bill To Reform Telework Locality Pay for Federal Employees

    Source: United States House of Representatives – Congressman Dan Newhouse (4th District of Washington)

    Headline: Newhouse Introduces Bill To Reform Telework Locality Pay for Federal Employees

    This week, Rep. Dan Newhouse (WA-04) introduced The Federal Employee Return to Work Act to crack down on wasteful government spending and incentivize federal employees to return to in-person work. Federal employees who telework from home currently receive annual locality bonuses despite not being required to physically attend their offices located in a high-cost-of-living area. This bill is the House companion to U.S. Senator Bill Cassidy of Louisiana’s bill.

    “The federal government pays for massive offices for agency employees in Washington, D.C. and we now know that 17 of the 24 federal agencies are using less than a quarter of their space because of work from home employees,” said Rep. Newhouse.

    Newhouse continued, “If agencies wish to allow their employees to work from home, that is within their right to do so. But if they do, then the government should not be paying locality bonuses to those employees and they should be treated like any other work from home federal employee that doesn’t receive such a bonus. Taxpayers pay for federal buildings and salaries; it is time to stop wasting their money on empty buildings and unneeded work from home bonuses.”

    U.S. Senator Bill Cassidy (R-LA) said, “Federal employees get paid extra to work in higher-cost cities. But what if they don’t show up to work? Why should they get paid?” said Dr. Cassidy. “If you don’t show up for work, you don’t get paid at the same rate just for teleworking.”

    The U.S. Government Accountability Office (GAO) found that 17 of the 24 federal agencies were using 25% or less of their headquarters building’s capacity at the beginning of 2023. 

    GAO identified six agencies that were on average 91% vacant while their employees still received a 16.44% locality bonus compared to the rest of the country, regardless of their in-office attendance. These agencies included the Social Security Administration, the Small Business Administration, and the Department of Housing and Urban Development.

    The bill excludes certain federal employees who telework at least one day a week from receiving raises and special locality bonuses for their office location being in a high-cost-of-living area despite working from home.

    In the bill, the term “covered employee” means “an employee who teleworks not fewer than 1 day, or in the case of an alternative work schedule, not less than 20 percent a week.” The term does not include an employee who teleworks not fewer than 1 day a week; is disabled and receives reasonable accommodations; is a member of the Foreign Service; Federal law enforcement; Armed Services; or any other employee, the official worksite of whom is not described in section 531.605(a)(1) of title 5.

    If the employee meets the definition of “covered employee,” then they may not receive an annual adjustment under section 5303 of title 5. They shall be paid at the rate of basic pay under the applicable grade under the locality pay area designated as “Rest of U.S.”

    Full bill text can be found here.

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    MIL OSI USA News –

  • MIL-OSI USA: NASA Invites Media to 2024 von Braun Space Exploration Symposium

    Source: NASA

    Media are invited to attend the 2024 von Braun Space Exploration Symposium Monday Oct. 28 to Wednesday, Oct. 30 at the University of Alabama in Huntsville.
    Organized by the American Astronautical Society in collaboration with NASA’s Marshall Space Flight Center in Huntsville, the annual symposium gathers leaders from across government, industry, policy, and academia to discuss the current landscape of space exploration and chart a path forward amid the challenges that lie ahead.
    The theme of this year’s event is “Expanding Exploration: From Vision to Reality,” focusing on NASA’s and Marshall’s plans for the future and the broader discourse about exploration and discovery, technology, the workforce, and other elements of the space ecosystem.
    Media members interested should register with the astronautical society as a media representative under these guidelines for in-person or online attendance.
    Marshall Center Director Joseph Pelfrey will deliver opening remarks on Oct. 28, followed by panels on Artemis, artificial intelligence, and workforce development. NASA Deputy Associate Administrator Casey Swails will deliver a keynote address to close out the first day.
    Panels on, Oct. 29, will focus on space nuclear propulsion, science, and lunar logistics and mobility. Col. Eric Zarybnisky, Office of Space Launch director at the National Reconnaissance Office, will provide the luncheon keynote.
    The third and final day of the symposium Oct. 30, will include discussions on nuclear propulsion, space technology, and human exploration beyond low-Earth orbit. NASA Associate Administrator Jim Free and Wayne Hale, who retired in 2010 as the deputy associate administrator of strategic partnerships at NASA Headquarters in Washington, will lead a discussion and present awards at the closing luncheon.
    To arrange interviews with NASA Marshall speakers, contact Hannah Maginot, 256-932-1937, or Molly Porter, 256-424-5158.
    For more information on NASA’s Marshall Space Flight Center, visit:
    https://www.nasa.gov/marshall
    Hannah MaginotMarshall Space Flight Center, Huntsville, Ala.hannah.l.maginot@nasa.gov256-932-1937
    Molly PorterMarshall Space Flight Center, Huntsville, Ala.molly.a.porter@nasa.gov256-424-5158

    MIL OSI USA News –

  • MIL-OSI: Origin Bancorp, Inc. Reports Earnings For Third Quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    RUSTON, La., Oct. 23, 2024 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $18.6 million, or $0.60 diluted earnings per share for the quarter ended September 30, 2024, compared to net income of $21.0 million, or $0.67 diluted earnings per share, for the quarter ended June 30, 2024. Pre-tax, pre-provision (“PTPP”)(1) earnings was $28.3 million for the quarter ended September 30, 2024, compared to $32.0 million for the linked quarter.

    “I am pleased with the balance sheet trends we showed in the third quarter,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “I am confident these trends will continue and our bankers will capitalize on opportunities throughout our markets.”

    (1) PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

    Financial Highlights

    • Total loans held for investment (“LHFI”) were $7.96 billion at both September 30, 2024, and June 30, 2024. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.46 billion at September 30, 2024, reflecting an increase of $8.9 million, or 0.12%, compared to June 30, 2024.
    • Noninterest-bearing deposits were $1.89 billion at September 30, 2024, reflecting an increase of $27.1 million, or 1.5%, compared to June 30, 2024.
    • Net interest income was $74.8 million for the quarter ended September 30, 2024, reflecting an increase of $914,000, or 1.2%, compared to the linked quarter.
    • Our book value per common share was $36.76 as of September 30, 2024, reflecting an increase of $1.53, or 4.3%, compared to June 30, 2024. Tangible book value per common share(1) was $31.37 at September 30, 2024, reflecting an increase of $1.60, or 5.4%, compared to June 30, 2024.
    • Stockholders’ equity was $1.15 billion at September 30, 2024, reflecting an increase of $49.8 million, or 4.5%, compared to June 30, 2024.
    • At September 30, 2024, and June 30, 2024, the ratio of Company-level common equity Tier 1 capital to risk-weighted assets was 12.46%, and 12.15%, respectively, the Tier 1 leverage ratio was 10.93% and 10.70%, respectively, and the total capital ratio was 15.45% and 15.16%, respectively. The ratio of tangible common equity to tangible assets(1) was 9.98% at September 30, 2024, compared to 9.47% at June 30, 2024.

    (1) Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures. Please see the last few pages of this document for a reconciliation of these alternative financial measures to their most directly comparable GAAP measures.

    Results of Operations for the Three Months Ended September 30, 2024

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended September 30, 2024, was $74.8 million, an increase of $914,000, or 1.2%, compared to the quarter ended June 30, 2024, $813,000 of which was driven by one additional day in the current quarter. Higher interest rates drove a net increase of $147,000 in net interest income, which was reflected in a $1.2 million increase in interest income earned on interest-earnings assets offset by a $1.1 million increase in interest expense paid on interest-bearing liabilities.

    Higher interest rates on LHFI drove a $2.0 million increase in the yield for the quarter ended September 30, 2024, compared to the quarter ended June 30, 2024, $1.5 million of which was driven by real estate-based loans. The average rate on LHFI increased to 6.67% for the quarter ended September 30, 2024, compared to 6.58% for the quarter ended June 30, 2024. Higher interest rates on savings and interest-bearing transaction accounts drove a $1.1 million increase in interest expense, compared to the quarter ended June 30, 2024. The average rate on interest-bearing deposits increased to 4.01% for the quarter ended September 30, 2024, compared to 3.95% for the quarter ended June 30, 2024.

    The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. The federal funds target rate range was reduced by 50 basis points on September 18, 2024, to a range of 4.75% to 5.00%, the first rate reduction since early 2020.

    The NIM-FTE was 3.18% for the quarter ended September 30, 2024, representing a one- and a four-basis-point increase compared to the linked quarter and the prior year same quarter, respectively. The yield earned on interest-earning assets for the quarter ended September 30, 2024, was 6.09%, an increase of five and 40 basis points compared to the linked quarter and the prior year same quarter, respectively. The average rate paid on total interest-bearing liabilities for the quarter ended September 30, 2024, was 4.04%, representing a six- and 45-basis point increase compared to the linked quarter and the prior year same quarter, respectively.

    As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, we reversed $1.2 million of accrued loan interest during the quarter ended June 30, 2024, due to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. This reversal of accrued loan interest income negatively impacted the fully tax equivalent net interest margin (“NIM-FTE”) by five basis points for the linked quarter. Had we not experienced the reversal of the $1.2 million of accrued interest income during the quarter ended June 30, 2024, our NIM-FTE would have been 3.22% for the linked quarter, and we would have experienced a four-basis point decrease in our current NIM-FTE compared to the linked quarter. There was no equivalent interest income reversal during the current quarter and these loans remain on non-accrual.

    Credit Quality

    The table below includes key credit quality information:

      At and For the Three Months Ended   Change   % Change
    (Dollars in thousands, unaudited) September 30,
    2024    		   June 30,
    2024    		   September 30,
    2023    		   Linked
    Quarter    		   Linked
    Quarter
    Past due LHFI $ 38,838     $ 66,276     $ 20,347     $ (27,438 )   (41.4)%
    Allowance for loan credit losses (“ALCL”)   95,989       100,865       95,177       (4,876 )   (4.8 )
    Classified loans   107,486       118,254       64,021       (10,768 )   (9.1 )
    Total nonperforming LHFI   64,273       75,812       31,608       (11,539 )   (15.2 )
    Provision for credit losses   4,603       5,231       3,515       (628 )   (12.0 )
    Net charge-offs   9,520       2,946       2,686       6,574     223.2  
    Credit quality ratios(1):                  
    ALCL to nonperforming LHFI   149.35 %     133.05 %     301.12 %     16.30 %   N/A
    ALCL to total LHFI   1.21       1.27       1.26       (0.06 )   N/A
    ALCL to total LHFI, adjusted(2)   1.28       1.34       1.30       (0.06 )   N/A
    Classified loans to total LHFI   1.35       1.49       0.85       (0.14 )   N/A
    Nonperforming LHFI to LHFI   0.81       0.95       0.42       (0.14 )   N/A
    Net charge-offs to total average LHFI (annualized)   0.48       0.15       0.14       0.33     N/A

    ___________________________

    (1) Please see the Loan Data schedule at the back of this document for additional information.
    (2)  The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       

    As discussed in our June 30, 2024, Origin Bancorp, Inc. Earnings Release, our credit metrics were negatively impacted by certain questioned activity involving a single banker, who has since been terminated, in our East Texas market. Our investigation of this activity remains ongoing and is not final; however, as a result of a forbearance agreement with one of our impacted customer relationships, our past due LHFI declined $26.4 million when compared to the quarter ended June 30, 2024. There was no material change in the level of our nonperforming or classified LHFI principal balances between the current quarter and the linked quarter as a result of the questioned activity. We continue to work with an outside forensic accounting firm to confirm the bank’s identification and reconciliation of the activity, targeting a conclusion of this analysis by the end of this year. At this time, we believe that any ultimate loss arising from the situation will not be material to our financial position.

    Past due LHFI were $38.8 million for the quarter ended September 30, 2024, compared to $66.3 million at June 30, 2024. Of the $27.4 million decrease, $26.4 million were impacted by or related to the questioned activity. The remaining net decrease in past due LHFI was primarily due to charge-offs or payoffs in commercial and industrial past due loans during the quarter ended September 30, 2024.

    Nonperforming LHFI decreased $11.5 million for the quarter reflecting a decrease in the percentage of nonperforming LHFI to LHFI to 0.81% compared to 0.95% for the linked quarter. The decrease in nonperforming loans was primarily driven by three commercial and industrial loan relationships totaling $14.6 million at June 30, 2024, $10.4 million of which were charged-off and $4.2 million were paid down during the current quarter.

    Classified loans decreased $10.8 million to $107.5 million at September 30, 2024, reflecting 1.35% as a percentage of total LHFI, down 14 basis points from the linked quarter. The decrease in classified loans was primarily driven by the same three commercial and industrial loan relationships mentioned in the nonperforming loan paragraph directly above.

    Noninterest Income

    Noninterest income for the quarter ended September 30, 2024, was $16.0 million, a decrease of $6.5 million, or 28.8%, from the linked quarter. The decrease from the linked quarter was primarily driven by decreases of $5.2 million, $725,000 and $621,000 in the change in fair value of equity investments, mortgage banking revenue and other income, respectively.

    The decrease in change in fair value of equity investments was due to a $5.2 million positive valuation adjustment on a non-marketable equity security recognized during the linked quarter with no comparable amount recognized during the current quarter.

    The decrease in mortgage banking revenue was primarily due to an $833,000 combined decrease in the pipeline and interest rate lock commitment fair values during the current quarter compared to the linked quarter.

    The decrease in other income was primarily due to an $818,000 gain on sale of bank property recognized in the linked quarter with no comparable amount recognized in the current quarter.

    Noninterest Expense

    Noninterest expense for the quarter ended September 30, 2024, was $62.5 million, a decrease of $1.9 million, or 2.9% from the linked quarter. The decrease was primarily driven by a decrease of $1.6 million and in other noninterest expense.

    The decrease in other expenses resulted from recognizing contingent liabilities totaling approximately $1.2 million related to certain questioned activity involving a single banker, who has since been terminated, in our East Texas market, as described previously, in the linked quarter with no comparable liability incurred in the current quarter. Also, contributing to the quarter over quarter decline was a $357,000 decrease in corporate membership fees.

    Financial Condition

    Loans

    • Total LHFI were $7.96 billion at both September 30, 2024, and June 30, 2024, and reflected an increase of $388.7 million, or 5.1%, compared to September 30, 2023.
    • Total LHFI, excluding MW LOC, were $7.46 billion at September 30, 2024, representing an increase of $8.9 million, or 0.1%, from June 30, 2024, and an increase of $179.8 million, or 2.5%, from September 30, 2023.
    • During the quarter ended September 30, 2024, compared to the linked quarter, we experienced declines in construction/land/land development loans and MW LOC of $25.8 million and $11.3 million, respectively, partially offset by growth in multi-family real estate loans of $36.1 million.

    Securities

    • Total securities were $1.18 billion at both September 30, 2024, and June 30, 2024, and reflected a decrease of $129.8 million, or 9.9%, compared to September 30, 2023.
    • Accumulated other comprehensive loss, net of taxes, primarily associated with the available for sale (“AFS”) portfolio, was $94.2 million at September 30, 2024, an improvement of $32.9 million, or 25.9%, from the linked quarter.
    • The weighted average effective duration for the total securities portfolio was 4.21 years as of September 30, 2024, compared to 4.28 years as of June 30, 2024.

    Deposits

    • Total deposits at September 30, 2024, were $8.49 billion, a decrease of $24.3 million, or 0.3%, compared to the linked quarter, and represented an increase of $112.1 million, or 1.3%, from September 30, 2023. The decrease in the current quarter compared to the linked quarter was primarily due to a decrease of $205.2 million in brokered (which includes both brokered time and brokered interest-bearing demand) deposits. The decrease in brokered deposits was primarily replaced with customer deposits.
    • Excluding brokered deposits, total deposit increased $180.9 million, or 2.3%, to $8.05 billion, primarily due to increases of $87.0 million, $64.4 million and $27.1 million in money market deposits, interest-bearing demand deposits and noninterest-bearing demand deposits, respectively.
    • At September 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 22.3%, compared to 21.9% and 24.0% at June 30, 2024, and September 30, 2023, respectively. Excluding brokered deposits, noninterest-bearing deposits as a percentage of total deposits were 23.5%, compared to 23.7% and 26.1% at June 30, 2024, and September 30, 2023, respectively.

    Borrowings

    • FHLB advances and other borrowings at September 30, 2024, were $30.4 million, a decrease of $10.3 million, or 25.3%, compared to the linked quarter and represented an increase of $18.2 million, or 149.3%, from September 30, 2023.

    Stockholders’ Equity

    • Stockholders’ equity was $1.15 billion at September 30, 2024, an increase of $49.8 million, or 4.5%, compared to $1.10 billion at June 30, 2024, and an increase of $146.7 million, or 14.7%, compared to September 30, 2023.
    • The increase in stockholders’ equity from the linked quarter is primarily due to a decrease in accumulated other comprehensive loss of $32.9 million and net income of $18.6 million, partially offset by dividends declared of $4.8 million during the current quarter.

    Conference Call

    Origin will hold a conference call to discuss its third quarter 2024 results on Thursday, October 24, 2024, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (800) 528-1066 (U.S. Toll Free), enter Conference ID: 84865 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ324.

    If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

    About Origin

    Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 60 locations from Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

    Non-GAAP Financial Measures

    Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, adjusted NIM-FTE, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, tangible common equity to tangible assets, ROATCE, and core efficiency ratio.

    Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

    Forward-Looking Statements

    This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin’s future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the effects of declines in the real estate market, high-profile bank failures, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; changes in benchmark interest rates and the resulting impacts on net interest income; deterioration of Origin’s asset quality; factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; changes in the value of collateral securing Origin’s loans; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; Origin’s ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of prolonged elevated interest rates on our financial projections, models and guidance); the effectiveness of Origin’s risk management framework and quantitative models; Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; the impact of labor pressures; changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; changes in management personnel; Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; increasing costs as Origin grows deposits; operational risks associated with Origin’s business; significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which Origin operates and in which its loans are concentrated; Origin’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the credit risk associated with the substantial amount of commercial real estate, construction and land development, and commercial loans in Origin’s loan portfolio; changes in laws, rules, regulations, interpretations or policies relating to financial institutions, and potential expenses associated with complying with such regulations; periodic changes to the extensive body of accounting rules and best practices; further government intervention in the U.S. financial system; a deterioration of the credit rating for U.S. long-term sovereign debt or actions that the U.S. government may take to avoid exceeding the debt ceiling; a potential U.S. federal government shutdown and the resulting impacts; compliance with governmental and regulatory requirements, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and others relating to banking, consumer protection, securities, and tax matters; Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; changes in the utility of Origin’s non-GAAP liquidity measurements and its underlying assumptions or estimates; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations; natural disasters and adverse weather events, acts of terrorism, an outbreak of hostilities (including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environments), regional or national protests and civil unrest (including any resulting branch closures or property damage), widespread illness or public health outbreaks or other international or domestic calamities, and other matters beyond Origin’s control; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors (including Origin employees) which Origin may not be able to prevent, detect or mitigate, system failures, cybersecurity threats or security breaches and the cost of defending against them; Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

    Contact:

    Investor Relations
    Chris Reigelman
    318-497-3177
    chris@origin.bank

    Media Contact
    Ryan Kilpatrick
    318-232-7472
    rkilpatrick@origin.bank

    Origin Bancorp, Inc.
    Selected Quarterly Financial Data
    (Unaudited)

      Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
                       
    Income statement and share amounts (Dollars in thousands, except per share amounts)
    Net interest income $ 74,804     $ 73,890     $ 73,323     $ 72,989     $ 74,130  
    Provision for credit losses   4,603       5,231       3,012       2,735       3,515  
    Noninterest income   15,989       22,465       17,255       8,196       18,119  
    Noninterest expense   62,521       64,388       58,707       60,906       58,663  
    Income before income tax expense   23,669       26,736       28,859       17,544       30,071  
    Income tax expense   5,068       5,747       6,227       4,119       5,758  
    Net income $ 18,601     $ 20,989     $ 22,632     $ 13,425     $ 24,313  
    PTPP earnings(1) $ 28,272     $ 31,967     $ 31,871     $ 20,279     $ 33,586  
    Basic earnings per common share   0.60       0.68       0.73       0.43       0.79  
    Diluted earnings per common share   0.60       0.67       0.73       0.43       0.79  
    Dividends declared per common share   0.15       0.15       0.15       0.15       0.15  
    Weighted average common shares outstanding – basic   31,130,293       31,042,527       30,981,333       30,898,941       30,856,649  
    Weighted average common shares outstanding – diluted   31,239,877       31,131,829       31,078,910       30,995,354       30,943,860  
                       
    Balance sheet data                  
    Total LHFI $ 7,956,790     $ 7,959,171     $ 7,900,027     $ 7,660,944     $ 7,568,063  
    Total LHFI excluding MW LOC   7,461,602       7,452,666       7,499,032       7,330,978       7,281,770  
    Total assets   9,965,986       9,947,182       9,892,379       9,722,584       9,733,303  
    Total deposits   8,486,568       8,510,842       8,505,464       8,251,125       8,374,488  
    Total stockholders’ equity   1,145,673       1,095,894       1,078,853       1,062,905       998,945  
                       
    Performance metrics and capital ratios                  
    Yield on LHFI   6.67 %     6.58 %     6.58 %     6.46 %     6.35 %
    Yield on interest-earnings assets   6.09       6.04       5.99       5.86       5.69  
    Cost of interest-bearing deposits   4.01       3.95       3.85       3.71       3.47  
    Cost of total deposits   3.14       3.08       2.99       2.84       2.61  
    NIM – fully tax equivalent (“FTE”)   3.18       3.17       3.19       3.19       3.14  
    Return on average assets (annualized) (“ROAA”)   0.74       0.84       0.92       0.55       0.96  
    PTPP ROAA (annualized)(1)   1.13       1.28       1.30       0.82       1.33  
    Return on average stockholders’ equity (annualized) (“ROAE”)   6.57       7.79       8.57       5.26       9.52  
    Book value per common share $ 36.76     $ 35.23     $ 34.79     $ 34.30     $ 32.32  
    Tangible book value per common share(1)   31.37       29.77       29.24       28.68       26.78  
    Adjusted tangible book value per common share(1)   34.39       33.86       33.27       32.59       32.37  
    Return on average tangible common equity (annualized) (“ROATCE”)(1)   7.74 %     9.25 %     10.24 %     6.36 %     11.48 %
    Efficiency ratio(2)   68.86       66.82       64.81       75.02       63.59  
    Core efficiency ratio(1)   67.48       65.55       65.24       70.55       60.49  
    Common equity tier 1 to risk-weighted assets(3)   12.46       12.15       11.97       11.83       11.46  
    Tier 1 capital to risk-weighted assets(3)   12.64       12.33       12.15       12.01       11.64  
    Total capital to risk-weighted assets(3)   15.45       15.16       14.98       15.02       14.61  
    Tier 1 leverage ratio(3)   10.93       10.70       10.66       10.50       10.00  

    __________________________

    (1) PTPP earnings, PTPP ROAA, tangible book value per common share, adjusted tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
    (2) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (3) September 30, 2024, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
       

    Origin Bancorp, Inc.
    Selected Year-To-Date Financial Data
    (Unaudited)

      Nine Months Ended September 30,
    (Dollars in thousands, except per share amounts)   2024       2023  
           
    Income statement and share amounts  
    Net interest income $ 222,017     $ 226,568  
    Provision for credit losses   12,846       14,018  
    Noninterest income   55,709       50,139  
    Noninterest expense   185,616       174,310  
    Income before income tax expense   79,264       88,379  
    Income tax expense   17,042       18,004  
    Net income $ 62,222     $ 70,375  
    PTPP earnings(1) $ 92,110     $ 102,397  
    Basic earnings per common share   2.00       2.29  
    Diluted earnings per common share   2.00       2.28  
    Dividends declared per common share   0.45       0.45  
    Weighted average common shares outstanding – basic   31,051,672       30,797,399  
    Weighted average common shares outstanding – diluted   31,160,867       30,903,222  
           
    Performance metrics      
    Yield on LHFI   6.61 %     6.19 %
    Yield on interest-earning assets   6.04       5.50  
    Cost of interest-bearing deposits   3.94       3.03  
    Cost of total deposits   3.07       2.22  
    NIM-FTE   3.18       3.24  
    Adjusted NIM-FTE(2)   3.18       3.21  
    ROAA (annualized)   0.84       0.94  
    PTPP ROAA (annualized)(1)   1.24       1.37  
    ROAE (annualized)   7.62       9.45  
    ROATCE (annualized)(1)   9.04       11.47  
    Efficiency ratio(3)   66.83       62.99  
    Core efficiency ratio(1)   66.09       59.94  

    ____________________________

    (1) PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
    (2) Adjusted NIM-FTE is a non-GAAP financial measure and is calculated for nine months ended September 30, 2024, by removing the $20,000 net purchase accounting amortization from net interest income. And, for the nine months ended September 30, 2023, by removing the $2.2 million net purchase accounting accretion from net interest income.
    (3) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
       

    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income
    (Unaudited)

      Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
                       
    Interest and dividend income (Dollars in thousands, except per share amounts)
    Interest and fees on loans $ 133,195   $ 129,879   $ 127,186     $ 123,673     $ 121,204  
    Investment securities-taxable   6,536     6,606     6,849       7,024       8,194  
    Investment securities-nontaxable   905     893     910       1,124       1,281  
    Interest and dividend income on assets held in other financial institutions   3,621     4,416     3,756       3,664       4,772  
    Total interest and dividend income   144,257     141,794     138,701       135,485       135,451  
    Interest expense                  
    Interest-bearing deposits   67,051     65,469     62,842       59,771       55,599  
    FHLB advances and other borrowings   482     514     518       220       3,207  
    Subordinated indebtedness   1,920     1,921     2,018       2,505       2,515  
    Total interest expense   69,453     67,904     65,378       62,496       61,321  
    Net interest income   74,804     73,890     73,323       72,989       74,130  
    Provision for credit losses   4,603     5,231     3,012       2,735       3,515  
    Net interest income after provision for credit losses   70,201     68,659     70,311       70,254       70,615  
    Noninterest income                  
    Insurance commission and fee income   6,928     6,665     7,725       5,446       6,443  
    Service charges and fees   4,664     4,862     4,688       4,889       4,621  
    Other fee income   2,114     2,404     2,247       2,118       2,006  
    Mortgage banking revenue (loss)   1,153     1,878     2,398       (719 )     892  
    Swap fee income   106     44     57       196       366  
    Gain (loss) on sales of securities, net   221     —     (403 )     (4,606 )     (7,173 )
    Change in fair value of equity investments   —     5,188     —       —       10,096  
    Other income   803     1,424     543       872       868  
    Total noninterest income   15,989     22,465     17,255       8,196       18,119  
    Noninterest expense                  
    Salaries and employee benefits   38,491     38,109     35,818       35,931       34,624  
    Occupancy and equipment, net   6,298     7,009     6,645       6,912       6,790  
    Data processing   3,470     3,468     3,145       3,062       2,775  
    Office and operations   2,984     3,072     2,502       2,947       2,868  
    Intangible asset amortization   1,905     2,137     2,137       2,259       2,264  
    Regulatory assessments   1,791     1,842     1,734       1,860       1,913  
    Advertising and marketing   1,449     1,328     1,444       1,690       1,371  
    Professional services   2,012     1,303     1,231       1,440       1,409  
    Loan-related expenses   751     1,077     905       1,094       1,220  
    Electronic banking   1,308     1,238     1,239       1,103       1,384  
    Franchise tax expense   721     815     477       942       520  
    Other expenses   1,341     2,990     1,430       1,666       1,525  
    Total noninterest expense   62,521     64,388     58,707       60,906       58,663  
    Income before income tax expense   23,669     26,736     28,859       17,544       30,071  
    Income tax expense   5,068     5,747     6,227       4,119       5,758  
    Net income $ 18,601   $ 20,989   $ 22,632     $ 13,425     $ 24,313  
    Basic earnings per common share $ 0.60   $ 0.68   $ 0.73     $ 0.43     $ 0.79  
    Diluted earnings per common share   0.60     0.67     0.73       0.43       0.79  
                                       

    Origin Bancorp, Inc.
    Consolidated Balance Sheets
    (Unaudited)

    (Dollars in thousands) September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
    Assets                  
    Cash and due from banks $ 159,337     $ 137,615     $ 98,147     $ 127,278     $ 141,705  
    Interest-bearing deposits in banks   161,854       150,435       193,365       153,163       163,573  
    Total cash and cash equivalents   321,191       288,050       291,512       280,441       305,278  
    Securities:                  
    AFS   1,160,965       1,160,048       1,190,922       1,253,631       1,290,839  
    Held to maturity, net of allowance for credit losses   11,096       11,616       11,651       11,615       10,790  
    Securities carried at fair value through income   6,533       6,499       6,755       6,808       6,772  
    Total securities   1,178,594       1,178,163       1,209,328       1,272,054       1,308,401  
    Non-marketable equity securities held in other financial institutions   67,068       64,010       53,870       55,190       63,842  
    Loans held for sale   7,631       18,291       14,975       16,852       14,944  
    Loans   7,956,790       7,959,171       7,900,027       7,660,944       7,568,063  
    Less: ALCL   95,989       100,865       98,375       96,868       95,177  
    Loans, net of ALCL   7,860,801       7,858,306       7,801,652       7,564,076       7,472,886  
    Premises and equipment, net   126,751       121,562       120,931       118,978       111,700  
    Mortgage servicing rights   —       —       —       15,637       19,189  
    Cash surrender value of bank-owned life insurance   40,602       40,365       40,134       39,905       39,688  
    Goodwill   128,679       128,679       128,679       128,679       128,679  
    Other intangible assets, net   39,272       41,177       43,314       45,452       42,460  
    Accrued interest receivable and other assets   195,397       208,579       187,984       185,320       226,236  
    Total assets $ 9,965,986     $ 9,947,182     $ 9,892,379     $ 9,722,584     $ 9,733,303  
    Liabilities and Stockholders’ Equity                  
    Noninterest-bearing deposits $ 1,893,767     $ 1,866,622     $ 1,887,066     $ 1,919,638     $ 2,008,671  
    Interest-bearing deposits excluding brokered interest-bearing deposits   5,137,940       4,984,817       4,990,632       4,918,597       4,728,263  
    Time deposits   1,023,252       1,022,589       1,030,656       967,901       968,352  
    Brokered deposits   431,609       636,814       597,110       444,989       669,202  
    Total deposits   8,486,568       8,510,842       8,505,464       8,251,125       8,374,488  
    FHLB advances and other borrowings   30,446       40,737       13,158       83,598       12,213  
    Subordinated indebtedness   159,861       159,779       160,684       194,279       196,825  
    Accrued expenses and other liabilities   143,438       139,930       134,220       130,677       150,832  
    Total liabilities   8,820,313       8,851,288       8,813,526       8,659,679       8,734,358  
    Stockholders’ equity:                  
    Common stock   155,837       155,543       155,057       154,931       154,534  
    Additional paid-in capital   535,662       532,950       530,380       528,578       525,434  
    Retained earnings   548,419       534,585       518,325       500,419       491,706  
    Accumulated other comprehensive loss   (94,245 )     (127,184 )     (124,909 )     (121,023 )     (172,729 )
    Total stockholders’ equity   1,145,673       1,095,894       1,078,853       1,062,905       998,945  
    Total liabilities and stockholders’ equity $ 9,965,986     $ 9,947,182     $ 9,892,379     $ 9,722,584     $ 9,733,303  
                                           

    Origin Bancorp, Inc.
    Loan Data
    (Unaudited)

      At and For the Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
                       
    LHFI (Dollars in thousands)
    Owner occupied commercial real estate $ 991,671     $ 959,850     $ 948,624     $ 953,822     $ 932,109  
    Non-owner occupied commercial real estate   1,533,093       1,563,152       1,472,164       1,488,912       1,503,782  
    Construction/land/land development   991,545       1,017,389       1,168,597       1,070,225       1,076,756  
    Residential real estate – single family   1,414,013       1,421,027       1,373,532       1,373,696       1,338,382  
    Multi-family real estate   434,317       398,202       359,765       361,239       349,787  
    Total real estate loans   5,364,639       5,359,620       5,322,682       5,247,894       5,200,816  
    Commercial and industrial   2,074,037       2,070,947       2,154,151       2,059,460       2,058,073  
    MW LOC   495,188       506,505       400,995       329,966       286,293  
    Consumer   22,926       22,099       22,199       23,624       22,881  
    Total LHFI   7,956,790       7,959,171       7,900,027       7,660,944       7,568,063  
    Less: ALCL   95,989       100,865       98,375       96,868       95,177  
    LHFI, net $ 7,860,801     $ 7,858,306     $ 7,801,652     $ 7,564,076     $ 7,472,886  
                       
    Nonperforming assets(1)                  
    Nonperforming LHFI                  
    Commercial real estate $ 2,776     $ 2,196     $ 4,474     $ 786     $ 942  
    Construction/land/land development   26,291       26,336       383       305       235  
    Residential real estate(2)   14,313       13,493       14,918       13,037       13,236  
    Commercial and industrial   20,486       33,608       20,560       15,897       17,072  
    Consumer   407       179       104       90       123  
    Total nonperforming loans   64,273       75,812       40,439       30,115       31,608  
    Repossessed assets   6,043       6,827       3,935       3,929       3,939  
    Total nonperforming assets $ 70,316     $ 82,639     $ 44,374     $ 34,044     $ 35,547  
    Classified assets $ 113,529     $ 125,081     $ 88,152     $ 84,474     $ 67,960  
    Past due LHFI(3)   38,838       66,276       32,835       26,043       20,347  
                       
    Allowance for loan credit losses                  
    Balance at beginning of period $ 100,865     $ 98,375     $ 96,868     $ 95,177     $ 94,353  
    Provision for loan credit losses   4,644       5,436       4,089       3,582       3,510  
    Loans charged off   11,226       3,706       6,683       3,803       3,202  
    Loan recoveries   1,706       760       4,101       1,912       516  
    Net charge-offs   9,520       2,946       2,582       1,891       2,686  
    Balance at end of period $ 95,989     $ 100,865     $ 98,375     $ 96,868     $ 95,177  
                       
    Credit quality ratios                  
    Total nonperforming assets to total assets   0.71 %     0.83 %     0.45 %     0.35 %     0.37 %
    Nonperforming LHFI to LHFI   0.81       0.95       0.51       0.39       0.42  
    Past due LHFI to LHFI   0.49       0.83       0.42       0.34       0.27  
    ALCL to nonperforming LHFI   149.35       133.05       243.27       321.66       301.12  
    ALCL to total LHFI   1.21       1.27       1.25       1.26       1.26  
    ALCL to total LHFI, adjusted(4)   1.28       1.34       1.30       1.31       1.30  
    Net charge-offs to total average LHFI (annualized)   0.48       0.15       0.13       0.10       0.14  

    ____________________________

    (1) Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale.
    (2) Includes multi-family real estate.
    (3) Past due LHFI are defined as loans 30 days or more past due.
    (4) The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       

    Origin Bancorp, Inc.
    Average Balances and Yields/Rates
    (Unaudited)

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average Balance   Yield/Rate   Average Balance   Yield/Rate   Average Balance   Yield/Rate
                           
    Assets (Dollars in thousands)
    Commercial real estate $ 2,507,566   5.93 %   $ 2,497,490   5.91 %   $ 2,428,969   5.73 %
    Construction/land/land development   1,019,302   7.37       1,058,972   6.98       1,044,180   7.04  
    Residential real estate(1)   1,824,725   5.56       1,787,829   5.48       1,663,291   5.06  
    Commercial and industrial (“C&I”)   2,071,984   7.96       2,128,486   7.87       2,024,675   7.62  
    MW LOC   484,680   7.64       430,885   7.57       376,275   7.21  
    Consumer   22,739   7.93       22,396   8.06       23,704   7.74  
    LHFI   7,930,996   6.67       7,926,058   6.58       7,561,094   6.35  
    Loans held for sale   14,645   6.28       14,702   6.84       11,829   5.81  
    Loans receivable   7,945,641   6.67       7,940,760   6.58       7,572,923   6.35  
    Investment securities-taxable   1,038,634   2.50       1,046,301   2.54       1,310,459   2.48  
    Investment securities-nontaxable   146,619   2.46       143,232   2.51       216,700   2.35  
    Non-marketable equity securities held in other financial institutions   66,409   2.85       56,270   6.53       58,421   6.47  
    Interest-bearing balances due from banks   229,224   5.46       254,627   5.53       279,383   5.42  
    Total interest-earning assets   9,426,527   6.09       9,441,190   6.04       9,437,886   5.69  
    Noninterest-earning assets   559,309         567,035         597,678    
    Total assets $ 9,985,836       $ 10,008,225       $ 10,035,564    
                           
    Liabilities and Stockholders’ Equity                    
    Liabilities                      
    Interest-bearing liabilities                      
    Savings and interest-bearing transaction accounts $ 5,177,522   3.88 %   $ 5,130,224   3.80 %   $ 4,728,211   3.28 %
    Time deposits   1,469,849   4.47       1,534,679   4.46       1,626,935   4.04  
    Total interest-bearing deposits   6,647,371   4.01       6,664,903   3.95       6,355,146   3.47  
    FHLB advances and other borrowings   40,331   4.75       41,666   4.96       230,815   5.51  
    Subordinated indebtedness   159,826   4.78       159,973   4.83       196,792   5.07  
    Total interest-bearing liabilities   6,847,528   4.04       6,866,542   3.98       6,782,753   3.59  
    Noninterest-bearing liabilities                      
    Noninterest-bearing deposits   1,850,046         1,894,141         2,088,183    
    Other liabilities   162,565         163,273         151,716    
    Total liabilities   8,860,139         8,923,956         9,022,652    
    Stockholders’ Equity   1,125,697         1,084,269         1,012,912    
    Total liabilities and stockholders’ equity $ 9,985,836       $ 10,008,225       $ 10,035,564    
    Net interest spread     2.05 %       2.06 %       2.10 %
    NIM     3.16         3.15         3.12  
    NIM-FTE(2)     3.18         3.17         3.14  

    ____________________________

    (1) Includes multi-family real estate.
    (2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
       

    Origin Bancorp, Inc.
    Notable Items
    (Unaudited)

      At and For the Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)
                                           
      (Dollars in thousands, except per share amounts)
    Notable interest income items:                                    
    Interest income reversal on relationships impacted by questioned banker activity $ —     $ —     $ (1,206 )   $ (0.03 )   $ —     $ —     $ —     $ —     $ —     $ —  
    Notable provision expense items:                                    
    Provision expense related to questioned banker activity   —       —       (3,212 )     (0.08 )     —       —       —       —       —       —  
    Provision expense on relationships impacted by questioned banker activity   —       —       (4,131 )     (0.10 )     —       —       —       —       —       —  
    Notable noninterest income items:                                    
    MSR gain (impairment)   —       —       —       —       410       0.01       (1,769 )     (0.05 )     —       —  
    Gain (loss) on sales of securities, net   221       0.01       —       —       (403 )     (0.01 )     (4,606 )     (0.12 )     (7,173 )     (0.18 )
    Gain on sub-debt repurchase   —       —       81       —       —       —       —       —       —       —  
    Positive valuation adjustment on non-marketable equity securities   —       —       5,188       0.13       —       —       —       —       10,096       0.26  
    Gain on bank property sale   —       —       800       0.02       —       —       —       —       —       —  
    Notable noninterest expense items:                                    
    Operating expense related to questioned banker activity   (848 )     (0.02 )     (1,452 )     (0.04 )     —       —       —       —       —       —  
    Total notable items $ (627 )     (0.02 )   $ (3,932 )     (0.10 )   $ 7       —     $ (6,375 )     (0.16 )   $ 2,923       0.07  

    ____________________________

    (1) The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
       

    Origin Bancorp, Inc.
    Notable Items – Continued
    (Unaudited)

      Nine Months Ended September 30,
        2024       2023  
      $ Impact   EPS Impact(1)   $ Impact   EPS Impact(1)
                   
      (Dollars in thousands, except per share amounts)
    Notable interest income items:              
    Interest income reversal on relationships impacted by questioned banker activity $ (1,206 )   $ (0.03 )   $ —     $ —  
    Notable provision expense items:              
    Provision expense related to questioned banker activity   (3,212 )     (0.08 )     —       —  
    Provision expense on relationships impacted by questioned banker activity   (4,131 )     (0.10 )     —       —  
    Notable noninterest income items:              
    MSR gain   410       0.01       —       —  
    Loss on sales of securities, net   (182 )     —       (7,029 )     (0.18 )
    Gain on sub-debt repurchase   81       —       471       0.01  
    Positive valuation adjustment on non-marketable equity securities   5,188       0.13       10,096       0.26  
    Gain on bank property sale   800       0.02       —       —  
    Notable noninterest expense items:        
    Operating expense related to questioned banker activity   (2,300 )     (0.06 )     —       —  
    Total notable items $ (4,552 )     (0.12 )   $ 3,538       0.09  

    ____________________________

    (1) The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
       

    Origin Bancorp, Inc.
    Non-GAAP Financial Measures
    (Unaudited)

      At and For the Three Months Ended
      September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
                       
      (Dollars in thousands, except per share amounts)
    Calculation of PTPP earnings:                  
    Net income $ 18,601     $ 20,989     $ 22,632     $ 13,425     $ 24,313  
    Provision for credit losses   4,603       5,231       3,012       2,735       3,515  
    Income tax expense   5,068       5,747       6,227       4,119       5,758  
    PTPP earnings (non-GAAP) $ 28,272     $ 31,967     $ 31,871     $ 20,279     $ 33,586  
                       
    Calculation of PTPP ROAA:                  
    PTPP earnings $ 28,272     $ 31,967     $ 31,871     $ 20,279     $ 33,586  
    Divided by number of days in the quarter   92       91       91       92       92  
    Multiplied by the number of days in the year   366       366       366       365       365  
    PTPP earnings, annualized $ 112,473     $ 128,571     $ 128,184     $ 80,455     $ 133,249  
                       
    Divided by total average assets $ 9,985,836     $ 10,008,225     $ 9,861,236     $ 9,753,847     $ 10,035,564  
    ROAA (annualized) (GAAP)   0.74 %     0.84 %     0.92 %     0.55 %     0.96 %
    PTPP ROAA (annualized) (non-GAAP)   1.13       1.28       1.30       0.82       1.33  
                       
    Calculation of tangible common equity to tangible common assets, book value per common share and adjusted tangible book value per common share:
    Total assets $ 9,965,986     $ 9,947,182     $ 9,892,379     $ 9,722,584     $ 9,733,303  
    Goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Other intangible assets, net   (39,272 )     (41,177 )     (43,314 )     (45,452 )     (42,460 )
    Tangible assets   9,798,035       9,777,326       9,720,386       9,548,453       9,562,164  
                       
    Total common stockholders’ equity $ 1,145,673     $ 1,095,894     $ 1,078,853     $ 1,062,905     $ 998,945  
    Goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Other intangible assets, net   (39,272 )     (41,177 )     (43,314 )     (45,452 )     (42,460 )
    Tangible common equity   977,722       926,038       906,860       888,774       827,806  
    Accumulated other comprehensive loss   94,245       127,184       124,909       121,023       172,729  
    Adjusted tangible common equity   1,071,967       1,053,222       1,031,769       1,009,797       1,000,535  
    Divided by common shares outstanding at the end of the period   31,167,410       31,108,667       31,011,304       30,986,109       30,906,716  
    Book value per common share (GAAP) $ 36.76     $ 35.23     $ 34.79     $ 34.30     $ 32.32  
    Tangible book value per common share (non-GAAP)   31.37       29.77       29.24       28.68       26.78  
    Adjusted tangible book value per common share (non-GAAP)   34.39       33.86       33.27       32.59       32.37  
    Tangible common equity to tangible assets (non-GAAP)   9.98 %     9.47 %     9.33 %     9.31 %     8.66 %
                                           
    Calculation of ROATCE:                
    Net income $ 18,601     $ 20,989     $ 22,632     $ 13,425     $ 24,313  
    Divided by number of days in the quarter   92       91       91       92       92  
    Multiplied by number of days in the year   366       366       366       365       365  
    Annualized net income $ 74,000     $ 84,417     $ 91,025     $ 53,262     $ 96,459  
                       
    Total average common stockholders’ equity $ 1,125,697     $ 1,084,269     $ 1,062,705     $ 1,013,286     $ 1,012,912  
    Average goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Average other intangible assets, net   (40,487 )     (42,563 )     (44,700 )     (46,825 )     (43,901 )
    Average tangible common equity   956,531       913,027       889,326       837,782       840,332  
                       
    ROATCE (non-GAAP)   7.74 %     9.25 %     10.24 %     6.36 %     11.48 %
                       
    Calculation of core efficiency ratio:                  
    Total noninterest expense $ 62,521     $ 64,388     $ 58,707     $ 60,906     $ 58,663  
    Insurance and mortgage noninterest expense   (8,448 )     (8,402 )     (8,045 )     (8,581 )     (8,579 )
    Adjusted total noninterest expense   54,073       55,986       50,662       52,325       50,084  
                       
    Net interest income $ 74,804     $ 73,890     $ 73,323     $ 72,989     $ 74,130  
    Insurance and mortgage net interest income   (2,578 )     (2,407 )     (2,795 )     (2,294 )     (2,120 )
    Total noninterest income   15,989       22,465       17,255       8,196       18,119  
    Insurance and mortgage noninterest income   (8,081 )     (8,543 )     (10,123 )     (4,727 )     (7,335 )
    Adjusted total revenue   80,134       85,405       77,660       74,164       82,794  
                       
    Efficiency ratio (GAAP)   68.86 %     66.82 %     64.81 %     75.02 %     63.59 %
    Core efficiency ratio (non-GAAP)   67.48       65.55       65.24       70.55       60.49  
                                           

    Origin Bancorp, Inc.
    Non-GAAP Financial Measures – Continued
    (Unaudited)

      Nine Months Ended September 30,
        2024       2023  
           
      (Dollars in thousands, except per share amounts)
    Calculation of PTPP earnings:      
    Net income $ 62,222     $ 70,375  
    Provision for credit losses   12,846       14,018  
    Income tax expense   17,042       18,004  
    PTPP earnings (non-GAAP) $ 92,110     $ 102,397  
           
    Calculation of PTPP ROAA:      
    PTPP Earnings $ 92,110     $ 102,397  
    Divided by the year-to-date number of days   274       273  
    Multiplied by number of days in the year   366       365  
    Annualized PTPP Earnings $ 123,037     $ 136,904  
           
    Divided by total average assets $ 9,951,890     $ 10,004,097  
    ROAA (annualized) (GAAP)   0.84 %     0.94 %
    PTPP ROAA (annualized) (non-GAAP)   1.24       1.37  
           
    Calculation of ROATCE:    
    Net income $ 62,222     $ 70,375  
    Divided by the year-to-date number of days   274       273  
    Multiplied by number of days in the year   366       365  
    Annualized net income $ 83,114     $ 94,091  
           
    Total average common stockholders’ equity $ 1,091,018     $ 995,395  
    Average goodwill   (128,679 )     (128,679 )
    Average other intangible assets, net   (42,576 )     (46,391 )
    Average tangible common equity   919,763       820,325  
           
    ROATCE   9.04 %     11.47 %
           
    Calculation of core efficiency ratio:      
    Total noninterest expense $ 185,616     $ 174,310  
    Insurance and mortgage noninterest expense   (24,895 )     (25,768 )
    Adjusted total noninterest expense   160,721       148,542  
           
    Net interest income $ 222,017     $ 226,568  
    Insurance and mortgage net interest income   (7,780 )     (5,187 )
    Total noninterest income   55,709       50,139  
    Insurance and mortgage noninterest income   (26,747 )     (23,714 )
    Adjusted total revenue   243,199       247,806  
           
    Efficiency ratio   66.83 %     62.99 %
    Core efficiency ratio   66.09       59.94  

    The MIL Network –

  • MIL-OSI: TowneBank Reports Third Quarter 2024 Earnings

    Source: GlobeNewswire (MIL-OSI)

    SUFFOLK, Va., Oct. 23, 2024 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended September 30, 2024 of $42.95 million, or $0.57 per diluted share, compared to $44.86 million, or $0.60 per diluted share, for the quarter ended September 30, 2023.   Excluding certain items affecting comparability, core earnings (non-GAAP) were $43.39 million, or $0.58 per diluted share, in the current quarter compared to $44.88 million, or $0.60 per diluted share, for the quarter ended September 30, 2023.

    “Our third quarter results continued to deliver increased net interest income and noninterest income contributions from our diverse business model which were in line with expectations. We remain committed to prudent balance sheet management strategies. We were also excited to announce our partnership with Village Bank which will meaningfully enhance our Richmond presence, which is core to our franchise future growth. Lastly, the recently released FDIC Deposit Market Share Report for 2024 continues to demonstrate the strength of our Main Street banking model and core deposit franchise, resulting in the #1 market share, or 30%, in our legacy Virginia Beach-Norfolk-Newport News, VA-NC MSA,” said G. Robert Aston, Jr., Executive Chairman.

    Highlights for Third Quarter 2024:

    • Total revenues were $174.52 million, an increase of $1.65 million, or 0.96%, compared to third quarter 2023. Noninterest income increased $2.43 million, driven by growth in residential mortgage banking income and insurance commissions. Partially offsetting the increase in noninterest income was a $0.78 million decline in net interest income.
    • Total deposits were $14.36 billion, an increase of $482.37 million, or 3.48%, compared to third quarter 2023. Total deposits increased 0.63%, or $90.58 million, in comparison to June 30, 2024, 2.52% on an annualized basis.
    • Noninterest-bearing deposits decreased 3.99%, to $4.27 billion, compared to third quarter 2023 and represented 29.71% of total deposits. Compared to the linked quarter, noninterest-bearing deposits decreased 0.84%.
    • Loans held for investment were $11.41 billion, an increase of $239.55 million, or 2.14%, compared to September 30, 2023, but a decrease of $39.23 million, or 0.34%, compared to June 30, 2024.
    • Annualized return on common shareholders’ equity was 8.18% compared to 9.04% in third quarter 2023. Annualized return on average tangible common shareholders’ equity (non-GAAP) was 11.54% compared to 13.11% in third quarter 2023.
    • Net interest margin was 2.90% for the quarter and tax-equivalent net interest margin (non-GAAP) was 2.93%, including purchase accounting accretion of 3 basis points, compared to the prior year quarter net interest margin of 2.95% and tax-equivalent net interest margin (non-GAAP) of 2.98%, including purchase accounting accretion of 5 basis points.
    • Compared to the linked quarter, net interest margin increased 4 bp and spread increased 6 bp.  
    • The effective tax rate was 11.52% in the quarter compared to 17.34% in third quarter 2023 and 15.93% in the linked quarter. The lower effective tax rate in the current quarter was primarily due to the impact on state and federal taxes from the increase in credits and losses related to LIHTC investment properties placed in service during the period.

    “Growth has certainly been challenging in the current environment but we believe our balance sheet is well positioned to support mid-single digit growth rates as we look ahead to next year. We plan to aggressively expand Towne Insurance and evaluate other opportunities to enhance our fee-based lines of business to further drive our differentiated business model,” stated William I. Foster III, President and Chief Executive Officer.

    Quarterly Net Interest Income:

    • Net interest income was $112.28 million compared to $113.06 million for the quarter ended September 30, 2023. The decrease was driven by increased deposit costs, which were mostly offset by higher yields on earning assets.
    • On an average basis, loans held for investment, with a yield of 5.46%, represented 74.16% of earning assets at September 30, 2024 compared to a yield of 5.13% and 73.45% of earning assets in the third quarter of 2023.
    • The cost of interest-bearing deposits was 3.28% for the quarter ended September 30, 2024, compared to 2.77% in second quarter 2023. Interest expense on deposits increased $17.96 million, or 27.98%, over the prior year quarter driven by the increase in rate and growth in interest-bearing deposits.
    • Our total cost of deposits increased to 2.29% from 1.84% for the quarter ended September 30, 2023 due to a combination of higher interest-bearing deposit balances coupled with higher rates.   The Federal Reserve Open Market Committee lowered the overnight funds rate late in the third quarter. Management is expecting the decrease to have favorable impact on deposit costs in the fourth quarter of 2024.
    • Average interest-earning assets totaled $15.40 billion at September 30, 2024 compared to $15.21 billion at September 30, 2023, an increase of 1.26%. The Company anticipates approximately $604 million of cash flows from its securities portfolio to be available for reinvestment in the next twenty-four months.
    • Average interest-bearing liabilities totaled $10.25 billion, an increase of $493.95 million, or 5.06%, from prior year, driven by deposit growth. Borrowings have declined between periods. There were no short term FHLB borrowings in the third quarter of 2024, compared to an average of $248.91 million in the prior year quarter.

    Quarterly Provision for Credit Losses:

    • The quarterly provision for credit losses was a benefit of $1.10 million compared to an expense of $1.01 million in the prior year quarter and a benefit of $177 thousand in the linked quarter.
    • The allowance for credit losses on loans decreased $2.36 million in third quarter 2024, compared to the linked quarter. The decrease in the allowance was driven by a modest decline in the loan portfolio, primarily in higher-risk real estate construction and development loans, combined with continued strength in credit quality, and improvements in macroeconomic forecast scenarios utilized in our model.
    • Net loan charge-offs were $0.68 million in the quarter compared to net recoveries of $1.07 million in the prior year quarter and $19 thousand in the linked quarter.   Year-to-date 2024, net loan charge-offs were $1.18 million compared to net loan charge-offs of $2.81 million in first nine months of 2023.
    • The ratio of net charge-offs to average loans on an annualized basis was 0.02% in third quarter 2024, compared to (0.04)% in third quarter 2023 and 0.00% in the linked quarter.
    • The allowance for credit losses on loans represented 1.08% of total loans at September 30, 2024, compared to 1.12% at September 30, 2023, and 1.10% at June 30, 2024. The allowance for credit losses on loans was 18.70 times nonperforming loans compared to 17.60 times at September 30, 2023 and 19.08 times at June 30, 2024.

    Quarterly Noninterest Income:

    • Total noninterest income was $62.24 million compared to $59.81 million in 2023, an increase of $2.43 million, or 4.06%.
    • Residential mortgage banking income was $11.79 million compared to $10.65 million in third quarter 2023. Loan volume increased to $598.18 million in third quarter 2024 from $520.41 million in third quarter 2023. Both, the number of loans originated and the per-loan average balance increased in third quarter 2024 compared to third quarter 2023. Refinance activities increased in the quarter after more than a year of low activity. Residential purchase activity was 91.49% of production volume in the third quarter of 2024 compared to 95.96% in third quarter 2023.   Management expects mortgage production volumes to be positively impacted by any additional reductions in the Federal Reserve overnight rate.
    • While level with the linked quarter at 3.28%, gross margins on residential mortgage sales increased 11 basis points from 3.17% in third quarter 2023.
    • Total net insurance commissions increased $1.95 million, or 8.20%, to $25.73 million in third quarter 2024 compared to 2023. This increase was primarily attributable to increases in property and casualty commissions, which were driven by organic growth.
    • Property management fee revenue decreased 12.34%, or $1.58 million, to $11.22 million in third quarter 2024 compared to 2023. Reservation levels declined compared to the prior year.

    Quarterly Noninterest Expense:

    • Total noninterest expense was $126.90 million compared to $117.70 million in 2023, an increase of $9.20 million, or 7.81%. This increase was primarily attributable to growth in salaries and employee benefits of $4.87 million, professional fees of $1.95 million, software of $0.66 million, data processing of $0.56 million, and advertising and marketing of $0.51 million.
    • Salaries and benefits expense increases were driven by an increase in banking personnel and production incentives.
    • Investment in technology related to banking services and information monitoring continued to drive both direct and indirect costs. Professional fees increased due to consulting and outside services.   Software costs increased due to higher core system costs, while data processing increased due to higher processing costs and merchant fee increases.
    • Advertising and marketing increased, driven by business development.

    Consolidated Balance Sheet Highlights:

    • Management is focused on strategic balance sheet management with a concentration on controlled loan growth and maintaining strong levels of liquidity.
    • Total assets were $17.19 billion for the quarter ended September 30, 2024, a $119.18 million increase compared to $17.07 billion at June 30, 2024. Total assets increased $507.66 million, or 3.04%, from $16.68 billion at September 30, 2023.
    • Loans held for investment declined $39.23 million, or 0.34%, compared to the linked quarter but increased $239.55 million, or 2.14%, compared to prior year. There were declines in several loan categories from the linked quarter, with the most significant decline in the real estate construction and development category.   The Company continued to maintain strong credit discipline throughout the period.
    • Mortgage loans held for sale increased $76.27 million, or 40.56%, compared to prior year and $63.56 million, or 31.66%, compared to the linked quarter, driven by the increase in production.
    • Total deposits increased $482.37 million, or 3.48%, primarily in interest-bearing demand and time deposits, compared to prior year. In the linked quarter comparison, total deposits increased $90.58 million, or 2.52% on an annualized basis.
    • Noninterest-bearing deposits decreased $177.23 million, or 3.99%, compared to prior year and $36.15 million, or 0.84%, compared to the linked quarter, primarily in commercial and escrow accounts.
    • Total borrowings decreased $116.22 million, or 28.55%, compared to third quarter 2023 and $4.35 million, or 1.47%, compared to the linked quarter. Short-term FHLB advances were zero at each of September 30, 2024, and the linked quarter end, compared to $100 million at September 30, 2023.

    Investment Securities:

    • Total investment securities were $2.60 billion compared to $2.49 billion at June 30, 2024 and $2.54 billion at September 30, 2023. The weighted average duration of the portfolio at September 30, 2024 was 3.1 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $110.62 million at September 30, 2024, compared to $172.93 million at June 30, 2024 and $238.52 million at September 30, 2023, with the changes in fair value due to the change in interest rates.

    Loans and Asset Quality:

    • Total loans held for investment were $11.41 billion at September 30, 2024, $11.45 billion June 30, 2024, and $11.17 billion at September 30, 2023.
    • Nonperforming assets were $7.47 million, or 0.04% of total assets, compared to $7.88 million, or 0.05%, at September 30, 2023, and $7.16 million, or 0.04%, in the linked quarter end.
    • Nonperforming loans were 0.06% of period end loans at September 30, 2024, September 30, 2023, and the linked quarter end.
    • Foreclosed property consisted of $884 thousand in repossessed autos at September 30, 2024, compared to $276 thousand in other real estate owned and $490 thousand in repossessed autos, for a total of $766 thousand in foreclosed property at September 30, 2023.

    Deposits and Borrowings:

    • Total deposits were $14.36 billion compared to $14.27 billion at June 30, 2024 and $13.88 billion at September 30, 2023.
    • The ratio of period end loans held for investment to deposits was 79.46% compared to 80.24% at June 30, 2024 and 80.49% at September 30, 2023.
    • Noninterest-bearing deposits were 29.71% of total deposits at September 30, 2024 compared to 30.15% at June 30, 2024 and 32.02% at September 30, 2023. Noninterest-bearing deposits declined $177.23 million, or 3.99%, compared to September 30, 2023, and $36.15 million, or 0.84%, compared to the linked quarter.
    • Total borrowings were $290.82 million compared to $295.17 million at June 30, 2024 and $407.03 million at September 30, 2023.

    Capital:

    • Common equity tier 1 capital ratio of 12.63%(1).
    • Tier 1 leverage capital ratio of 10.38%(1).
    • Tier 1 risk-based capital ratio of 12.75%(1).
    • Total risk-based capital ratio of 15.53% (1) .
    • Book value per common share was $28.59 compared to $27.62 at June 30, 2024 and $26.28 at September 30, 2023.
    • Tangible book value per common share (non-GAAP) was $21.65 compared to $20.65 at June 30, 2024 and $19.28 at September 30, 2023.

    (1) Preliminary.

    About TowneBank:
    Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

    Now celebrating 25 years, TowneBank operates 50 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, LLC, and Towne Vacations. With total assets of $17.19 billion as of September 30, 2024, TowneBank is one of the largest banks headquartered in Virginia.

    Non-GAAP Financial Measures:
    This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

    Forward-Looking Statements:
    This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the recent bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to close the transaction with Village Bank when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; our integration of Village Bank’s business to the extent that it may take longer or be more difficult, time-consuming or costly to accomplish than expected; deposit attrition, operating costs, customer losses and business disruption following the Village Bank transaction, including adverse effects on relationships with employees and customers; costs or difficulties related to the integration of the businesses we have acquired may be greater than expected; expected growth opportunities or cost savings associated with pending or recently completed acquisitions may not be fully realized or realized within the expected time frame; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2023, and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

    Media contact:
    G. Robert Aston, Jr., Executive Chairman, 757-638-6780
    William I. Foster III, President and Chief Executive Officer, 757-417-6482

    Investor contact:
    William B. Littreal, Chief Financial Officer, 757-638-6813

     
    TOWNEBANK
    Selected Financial Highlights (unaudited)
    (dollars in thousands, except per share data)
         
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
    Income and Performance Ratios:                  
      Total revenue $ 174,518     $ 174,970     $ 167,102     $ 155,546     $ 172,864  
      Net income   43,126       43,039       35,127       28,545       44,745  
      Net income available to common shareholders   42,949       42,856       34,687       28,804       44,862  
      Net income per common share – diluted   0.57       0.57       0.46       0.39       0.60  
      Book value per common share   28.59       27.62       27.33       27.24       26.28  
      Book value per common share – tangible (non-GAAP)   21.65       20.65       20.31       20.28       19.28  
      Return on average assets   1.00 %     1.01 %     0.83 %     0.68 %     1.06 %
      Return on average assets – tangible (non-GAAP)   1.09 %     1.11 %     0.92 %     0.77 %     1.17 %
      Return on average equity   8.12 %     8.43 %     6.84 %     5.75 %     8.96 %
      Return on average equity – tangible (non-GAAP)   11.42 %     12.03 %     9.87 %     8.53 %     12.97 %
      Return on average common equity   8.18 %     8.49 %     6.89 %     5.79 %     9.04 %
      Return on average common equity – tangible (non-GAAP)   11.54 %     12.16 %     9.98 %     8.62 %     13.11 %
      Noninterest income as a percentage of total revenue   35.66 %     37.68 %     38.23 %     30.74 %     34.60 %
    Regulatory Capital Ratios (1):                  
      Common equity tier 1   12.63 %     12.43 %     12.20 %     12.18 %     12.19 %
      Tier 1   12.75 %     12.55 %     12.32 %     12.29 %     12.31 %
      Total   15.53 %     15.34 %     15.10 %     15.06 %     15.09 %
      Tier 1 leverage ratio   10.38 %     10.25 %     10.15 %     10.17 %     10.06 %
    Asset Quality:                  
      Allowance for credit losses on loans to nonperforming loans 18.70x   19.08x   18.01x   18.48x   17.60x
      Allowance for credit losses on loans to period end loans   1.08 %     1.10 %     1.10 %     1.12 %     1.12 %
      Nonperforming loans to period end loans   0.06 %     0.06 %     0.06 %     0.06 %     0.06 %
      Nonperforming assets to period end assets   0.04 %     0.04 %     0.05 %     0.05 %     0.05 %
      Net charge-offs (recoveries) to average loans (annualized)   0.02 %     — %     0.02 %     — %   (0.04 )%
      Net charge-offs (recoveries) $ 677     $ (19 )   $ 520     $ 68     $ (1,074 )
                         
      Nonperforming loans $ 6,588     $ 6,582     $ 6,987     $ 6,843     $ 7,110  
      Foreclosed property   884       581       780       908       766  
      Total nonperforming assets $ 7,472     $ 7,163     $ 7,767     $ 7,751     $ 7,876  
      Loans past due 90 days and still accruing interest $ 510     $ 368     $ 323     $ 735     $ 970  
      Allowance for credit losses on loans $ 123,191     $ 125,552     $ 125,835     $ 126,461     $ 125,159  
    Mortgage Banking:                  
      Loans originated, mortgage $ 421,571     $ 430,398     $ 289,191     $ 302,616     $ 348,387  
      Loans originated, joint venture   176,612       196,583       135,197       126,332       172,021  
      Total loans originated $ 598,182     $ 626,981     $ 424,388     $ 428,948     $ 520,408  
      Number of loans originated   1,637       1,700       1,247       1,237       1,487  
      Number of originators   159       169       176       181       192  
      Purchase %   91.49 %     94.85 %     95.66 %     95.06 %     95.96 %
      Loans sold $ 526,998     $ 605,134     $ 410,895     $ 468,014     $ 567,291  
      Rate lock asset $ 1,548     $ 1,930     $ 1,681     $ 895     $ 1,348  
      Gross realized gain on sales and fees as a % of loans originated   3.28 %     3.28 %     3.34 %     3.06 %     3.17 %
    Other Ratios:                  
      Net interest margin   2.90 %     2.86 %     2.72 %     2.83 %     2.95 %
      Net interest margin-fully tax-equivalent (non-GAAP)   2.93 %     2.89 %     2.75 %     2.86 %     2.98 %
      Average earning assets/total average assets   90.43 %     90.36 %     90.52 %     90.48 %     90.73 %
      Average loans/average deposits   80.07 %     80.80 %     81.48 %     80.72 %     80.75 %
      Average noninterest deposits/total average deposits   30.19 %     30.06 %     30.25 %     31.69 %     33.50 %
      Period end equity/period end total assets   12.58 %     12.24 %     12.24 %     12.21 %     11.90 %
      Efficiency ratio (non-GAAP)   70.93 %     68.98 %     73.25 %     76.17 %     66.21 %
      (1) Current reporting period regulatory capital ratios are preliminary.            
     
    TOWNEBANK
    Selected Data (unaudited)
    (dollars in thousands)
     
    Investment Securities             % Change
      Q3   Q3   Q2   Q3 24 vs.   Q3 24 vs.
    Available-for-sale securities, at fair value   2024       2023       2024     Q3 23   Q2 24
    U.S. agency securities $ 291,814     $ 300,161     $ 281,934     (2.78 )%   3.50 %
    U.S. Treasury notes   28,655       26,721       27,701     7.24 %   3.44 %
    Municipal securities   455,722       484,587       442,474     (5.96 )%   2.99 %
    Trust preferred and other corporate securities   91,525       74,024       88,228     23.64 %   3.74 %
    Mortgage-backed securities issued by GSEs and GNMA   1,496,631       1,079,303       1,411,883     38.67 %   6.00 %
    Allowance for credit losses   (1,171 )     (1,343 )     (1,541 )   (12.81 )%   (24.01 )%
    Total $ 2,363,176     $ 1,963,453     $ 2,250,679     20.36 %   5.00 %
    Gross unrealized gains (losses) reflected in financial statements            
    Total gross unrealized gains $ 6,703     $ 475     $ 1,983     1,311.16 %   238.02 %
    Total gross unrealized losses   (117,319 )     (238,993 )     (174,911 )   (50.91 )%   (32.93 )%
    Net unrealized gains (losses) and other adjustments on AFS securities $ (110,616 )   $ (238,518 )   $ (172,928 )   (53.62 )%   (36.03 )%
    Held-to-maturity securities, at amortized cost                  
    U.S. agency securities $ 102,428     $ 101,659     $ 102,234     0.76 %   0.19 %
    U.S. Treasury notes   96,942       433,015       97,171     (77.61 )%   (0.24 )%
    Municipal securities   5,342       5,249       5,318     1.77 %   0.45 %
    Trust preferred corporate securities   2,133       2,185       2,147     (2.38 )%   (0.65 )%
    Mortgage-backed securities issued by GSEs   5,577       5,746       5,618     (2.94 )%   (0.73 )%
    Allowance for credit losses   (77 )     (85 )     (79 )   (9.41 )%   (2.53 )%
    Total $ 212,345     $ 547,769     $ 212,409     (61.23 )%   (0.03 )%
                       
    Total gross unrealized gains $ 323     $ 82     $ 175     293.90 %   84.57 %
    Total gross unrealized losses   (7,929 )     (23,505 )     (12,880 )   (66.27 )%   (38.44 )%
    Net unrealized gains (losses) in HTM securities $ (7,606 )   $ (23,423 )   $ (12,705 )   (67.53 )%   (40.13 )%
    Total unrealized gains (losses) on AFS and HTM securities $ (118,222 )   $ (261,941 )   $ (185,633 )   (54.87 )%   (36.31 )%
                  % Change
    Loans Held For Investment Q3   Q3   Q2   Q3 24 vs.   Q3 24 vs.
        2024       2023       2024     Q3 23   Q2 24
    Real estate – construction and development $ 1,118,669     $ 1,325,976     $ 1,190,768     (15.63 )%   (6.05 )%
    Commercial real estate – owner occupied   1,655,345       1,686,888       1,673,582     (1.87 )%   (1.09 )%
    Commercial real estate – non owner occupied   3,179,699       3,025,985       3,155,958     5.08 %   0.75 %
    Real estate – multifamily   750,906       542,611       682,537     38.39 %   10.02 %
    Residential 1-4 family   1,891,216       1,818,843       1,887,420     3.98 %   0.20 %
    HELOC   408,565       371,861       408,273     9.87 %   0.07 %
    Commercial and industrial business (C&I)   1,256,511       1,237,524       1,297,538     1.53 %   (3.16 )%
    Government   521,681       523,456       517,954     (0.34 )%   0.72 %
    Indirect   546,887       548,621       558,216     (0.32 )%   (2.03 )%
    Consumer loans and other   83,039       91,206       79,501     (8.95 )%   4.45 %
    Total $ 11,412,518     $ 11,172,971     $ 11,451,747     2.14 %   (0.34 )%
                       
                  % Change
    Deposits Q3   Q3   Q2   Q3 24 vs.   Q3 24 vs.
        2024       2023       2024     Q3 23   Q2 24
    Noninterest-bearing demand $ 4,267,628     $ 4,444,861     $ 4,303,773     (3.99 )%   (0.84 )%
    Interest-bearing:                  
    Demand and money market accounts   6,990,103       6,764,415       6,940,086     3.34 %   0.72 %
    Savings   319,970       350,031       312,881     (8.59 )%   2.27 %
    Certificates of deposits   2,785,469       2,321,498       2,715,848     19.99 %   2.56 %
    Total   14,363,170       13,880,805       14,272,588     3.48 %   0.63 %
     
    TOWNEBANK
    Average Balances, Yields and Rate Paid (unaudited)
    (dollars in thousands)
     
      Three Months Ended   Three Months Ended   Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
          Interest   Average       Interest   Average       Interest   Average
      Average   Income/   Yield/   Average   Income/   Yield/   Average   Income/   Yield/
      Balance   Expense   Rate (1)   Balance   Expense   Rate (1)   Balance   Expense   Rate (1)
    Assets:                                  
    Loans (net of unearned income
    and deferred costs)    		 $ 11,419,428     $ 156,610     5.46 %   $ 11,471,669     $ 155,374     5.45 %   $ 11,169,924     $ 144,457     5.13 %
    Taxable investment securities   2,376,102       20,940     3.53 %     2,368,476       21,671     3.66 %     2,373,731       18,645     3.14 %
    Tax-exempt investment securities   168,768       1,686     4.00 %     156,503       1,521     3.89 %     206,639       1,993     3.86 %
    Total securities   2,544,870       22,626     3.56 %     2,524,979       23,192     3.67 %     2,580,370       20,638     3.20 %
    Interest-bearing deposits   1,226,445       15,249     4.95 %     1,182,816       14,512     4.93 %     1,230,582       15,031     4.85 %
    Mortgage loans held for sale   208,513       3,247     6.23 %     165,392       2,945     7.12 %     227,426       3,928     6.91 %
    Total earning assets   15,399,256       197,732     5.11 %     15,344,856       196,023     5.14 %     15,208,302       184,054     4.80 %
    Less: allowance for loan losses   (125,331 )             (126,792 )             (125,553 )        
    Total nonearning assets   1,754,216               1,764,418               1,680,110          
    Total assets $ 17,028,141             $ 16,982,482             $ 16,762,859          
    Liabilities and Equity:                                  
    Interest-bearing deposits                                  
    Demand and money market $ 6,917,622     $ 48,896     2.81 %   $ 6,896,176     $ 48,161     2.81 %   $ 6,605,853     $ 41,381     2.49 %
    Savings   315,338       842     1.06 %     317,774       845     1.07 %     356,116       938     1.05 %
    Certificates of deposit   2,723,437       32,390     4.73 %     2,715,615       33,017     4.89 %     2,236,102       21,852     3.88 %
    Total interest-bearing deposits   9,956,397       82,128     3.28 %     9,929,565       82,023     3.32 %     9,198,071       64,171     2.77 %
    Borrowings   33,867       (25 )   (0.29 )%     100,165       1,627     6.43 %     299,105       3,382     4.42 %
    Subordinated debt, net   256,309       2,237     3.49 %     256,093       2,236     3.49 %     255,446       2,245     3.52 %
    Total interest-bearing liabilities   10,246,573       84,340     3.27 %     10,285,823       85,886     3.36 %     9,752,622       69,798     2.84 %
    Demand deposits   4,305,783               4,267,590               4,633,856          
    Other noninterest-bearing liabilities   370,736               383,447               389,912          
    Total liabilities   14,923,092               14,936,860               14,776,390          
    Shareholders’ equity   2,105,049               2,045,622               1,986,469          
    Total liabilities and equity $ 17,028,141             $ 16,982,482             $ 16,762,859          
    Net interest income (tax-equivalent basis) (4)     $ 113,392             $ 110,137             $ 114,256      
    Reconciliation of Non-GAAP Financial Measures                                
    Tax-equivalent basis adjustment       (1,110 )             (1,089 )             (1,198 )    
    Net interest income (GAAP)     $ 112,282             $ 109,048             $ 113,058      
                                       
    Interest rate spread (2)(4)         1.84 %           1.78 %           1.96 %
    Interest expense as a percent of average earning assets       2.18 %           2.25 %           1.82 %
    Net interest margin (tax-equivalent basis) (3)(4)       2.93 %           2.89 %           2.98 %
    Total cost of deposits         2.29 %           2.32 %           1.84 %
                                       
    (1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
    (2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
    (3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
    (4) Non-GAAP.
     
    TOWNEBANK
    Average Balances, Yields and Rate Paid (unaudited)
    (dollars in thousands)
     
      Nine Months Ended   Nine Months Ended
      September 30, 2024   September 30, 2023
          Interest   Average       Interest   Average
      Average   Income/   Yield/   Average   Income/   Yield/
      Balance   Expense   Rate (1)   Balance   Expense   Rate (1)
    Assets:                      
    Loans (net of unearned income and deferred costs) $ 11,423,458     $ 463,794     5.42 %   $ 11,159,329     $ 417,808     5.01 %
    Taxable investment securities   2,395,007       61,327     3.41 %     2,420,634       52,656     2.90 %
    Tax-exempt investment securities   162,294       4,756     3.91 %     201,535       5,883     3.89 %
    Total securities   2,557,301       66,083     3.45 %     2,622,169       58,539     2.98 %
    Interest-bearing deposits   1,192,319       43,995     4.93 %     1,179,952       40,168     4.55 %
    Mortgage loans held for sale   163,755       7,908     6.44 %     168,822       8,079     6.38 %
    Total earning assets   15,336,833       581,780     5.07 %     15,130,272       524,594     4.64 %
    Less: allowance for loan losses   (126,508 )             (120,420 )        
    Total nonearning assets   1,748,215               1,637,952          
    Total assets $ 16,958,540             $ 16,647,804          
    Liabilities and Equity:                      
    Interest-bearing deposits                      
    Demand and money market $ 6,880,752     $ 145,042     2.82 %   $ 6,349,422     $ 96,742     2.04 %
    Savings   320,696       2,569     1.07 %     376,282       2,676     0.95 %
    Certificates of deposit   2,674,509       94,928     4.74 %     1,964,718       47,358     3.22 %
    Total interest-bearing deposits   9,875,957       242,539     3.28 %     8,690,422       146,776     2.26 %
    Borrowings   115,171       4,679     5.34 %     505,856       17,644     4.60 %
    Subordinated debt, net   256,094       6,710     3.49 %     253,612       6,650     3.50 %
    Total interest-bearing liabilities   10,247,222       253,928     3.31 %     9,449,890       171,070     2.42 %
    Demand deposits   4,265,971               4,873,945          
    Other noninterest-bearing liabilities   381,547               353,459          
    Total liabilities   14,894,740               14,677,294          
    Shareholders’ equity   2,063,800               1,970,510          
    Total liabilities and equity $ 16,958,540             $ 16,647,804          
    Net interest income (tax-equivalent basis)(4)     $ 327,852             $ 353,524      
    Reconciliation of Non-GAAP Financial Measures                    
    Tax-equivalent basis adjustment       (3,304 )             (3,477 )    
    Net interest income (GAAP)     $ 324,548             $ 350,047      
                           
    Interest rate spread (2)(4)         1.76 %           2.22 %
    Interest expense as a percent of average earning assets       2.21 %           1.51 %
    Net interest margin (tax-equivalent basis) (3)(4)       2.86 %           3.12 %
    Total cost of deposits         2.29 %           1.45 %
                           
    (1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
    (2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
    (3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
    (4) Non-GAAP.
     
    TOWNEBANK
    Consolidated Balance Sheets
    (dollars in thousands, except share data)
       
         
      September 30,   December 31,
        2024       2023  
      (unaudited)   (audited)
    ASSETS      
    Cash and due from banks $ 131,068     $ 85,584  
    Interest-bearing deposits at FRB   1,061,596       939,356  
    Interest-bearing deposits in financial institutions   103,400       103,417  
    Total Cash and Cash Equivalents   1,296,064       1,128,357  
    Securities available for sale, at fair value (amortized cost of $2,474,963 and $2,292,963, and allowance for credit losses of $1,171 and $1,498 at September 30, 2024 and December 31, 2023, respectively)   2,363,176       2,129,342  
    Securities held to maturity, at amortized cost (fair value $204,816 and $462,656 at September 30, 2024 and December 31, 2023, respectively)   212,422       477,592  
    Less: Allowance for credit losses   (77 )     (84 )
    Securities held to maturity, net of allowance for credit losses   212,345       477,508  
    Other equity securities   12,681       13,792  
    FHLB stock   12,134       21,372  
    Total Securities   2,600,336       2,642,014  
    Mortgage loans held for sale   264,320       149,987  
    Loans, net of unearned income and deferred costs   11,412,518       11,329,021  
    Less: allowance for credit losses   (123,191 )     (126,461 )
    Net Loans   11,289,327       11,202,560  
    Premises and equipment, net   365,764       337,598  
    Goodwill   457,619       456,335  
    Other intangible assets, net   63,265       64,634  
    BOLI   279,325       277,445  
    Other assets   572,000       576,109  
    TOTAL ASSETS $ 17,188,020     $ 16,835,039  
           
    LIABILITIES AND EQUITY      
    Deposits:      
    Noninterest-bearing demand $ 4,267,628     $ 4,342,701  
    Interest-bearing:      
    Demand and money market accounts   6,990,103       6,757,619  
    Savings   319,970       336,492  
    Certificates of deposit   2,785,469       2,456,394  
    Total Deposits   14,363,170       13,893,206  
    Advances from the FHLB   3,405       203,958  
    Subordinated debt, net   256,444       255,796  
    Repurchase agreements and other borrowings   30,970       32,826  
    Total Borrowings   290,819       492,580  
    Other liabilities   371,316       393,375  
    TOTAL LIABILITIES   15,025,305       14,779,161  
    Preferred stock, authorized and unissued shares – 2,000,000   —       —  
    Common stock, $1.667 par value: 150,000,000 shares authorized;      
    75,068,662 and 74,893,462 shares issued at      
    September 30, 2024 and December 31, 2023, respectively   125,139       124,847  
    Capital surplus   1,117,279       1,112,761  
    Retained earnings   985,343       921,126  
    Common stock issued to deferred compensation trust, at cost:      
    1,056,823 and 1,004,717 shares at September 30, 2024 and December 31, 2023, respectively   (22,224 )     (20,813 )
    Deferred compensation trust   22,224       20,813  
    Accumulated other comprehensive income (loss)   (81,482 )     (118,762 )
    TOTAL SHAREHOLDERS’ EQUITY   2,146,279       2,039,972  
    Noncontrolling interest   16,436       15,906  
    TOTAL EQUITY   2,162,715       2,055,878  
    TOTAL LIABILITIES AND EQUITY $ 17,188,020     $ 16,835,039  
     
    TOWNEBANK
    Consolidated Statements of Income (unaudited)
    (dollars in thousands, except per share data)
                   
                   
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
        2024       2023       2024       2023  
    INTEREST INCOME:              
    Loans, including fees $ 155,792     $ 143,605     $ 461,316     $ 415,351  
    Investment securities   22,334       20,292       65,257       57,519  
    Interest-bearing deposits in financial institutions and federal funds sold   15,249       15,031       43,995       40,168  
    Mortgage loans held for sale   3,247       3,928       7,908       8,079  
    Total interest income   196,622       182,856       578,476       521,117  
    INTEREST EXPENSE:              
    Deposits   82,128       64,171       242,539       146,776  
    Advances from the FHLB   29       3,438       3,408       16,838  
    Subordinated debt, net   2,237       2,245       6,710       6,650  
    Repurchase agreements and other borrowings   (54 )     (56 )     1,271       806  
    Total interest expense   84,340       69,798       253,928       171,070  
    Net interest income   112,282       113,058       324,548       350,047  
    PROVISION FOR CREDIT LOSSES   (1,100 )     1,007       (2,154 )     16,232  
    Net interest income after provision for credit losses   113,382       112,051       326,702       333,815  
    NONINTEREST INCOME:              
    Residential mortgage banking income, net   11,786       10,648       35,685       31,380  
    Insurance commissions and related income, net   25,727       23,777       75,297       69,098  
    Property management income, net   11,221       12,800       42,306       40,433  
    Real estate brokerage income, net   —       (63 )     —       3,562  
    Service charges on deposit accounts   3,117       2,823       9,548       8,577  
    Credit card merchant fees, net   1,830       2,006       5,042       5,232  
    Investment commissions, net   2,835       2,363       7,759       6,581  
    BOLI   1,886       1,814       6,966       5,196  
    Gain on sale of equity investment   20       554       20       9,386  
    Other income   3,814       3,084       9,345       9,083  
    Net gain/(loss) on investment securities   —       —       74       —  
    Total noninterest income   62,236       59,806       192,042       188,528  
    NONINTEREST EXPENSE:              
    Salaries and employee benefits   72,123       67,258       214,849       204,124  
    Occupancy   9,351       9,027       28,490       27,579  
    Furniture and equipment   4,657       4,100       13,769       12,733  
    Amortization – intangibles   3,130       3,610       9,675       10,744  
    Software   6,790       6,130       19,947       17,922  
    Data processing   4,701       4,140       13,223       11,504  
    Professional fees   4,720       2,770       11,689       8,948  
    Advertising and marketing   4,162       3,653       12,268       12,012  
    Other expenses   17,266       17,014       52,565       61,762  
    Total noninterest expense   126,900       117,702       376,475       367,328  
    Income before income tax expense and noncontrolling interest   48,718       54,155       142,269       155,015  
    Provision for income tax expense   5,592       9,410       20,977       28,424  
    Net income $ 43,126     $ 44,745     $ 121,292     $ 126,591  
    Net income attributable to noncontrolling interest   (177 )     117       (800 )     (1,680 )
    Net income attributable to TowneBank $ 42,949     $ 44,862     $ 120,492     $ 124,911  
    Per common share information              
    Basic earnings $ 0.57     $ 0.60     $ 1.61     $ 1.67  
    Diluted earnings $ 0.57     $ 0.60     $ 1.61     $ 1.67  
    Cash dividends declared $ 0.25     $ 0.25     $ 0.75     $ 0.73  
     
    TOWNEBANK
    Consolidated Balance Sheets – Five Quarter Trend
    (dollars in thousands, except share data)
     
                       
      September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
      (unaudited)   (unaudited)   (unaudited)   (audited)   (unaudited)
    ASSETS                  
    Cash and due from banks $ 131,068     $ 140,028     $ 75,802     $ 85,584     $ 83,949  
    Interest-bearing deposits at FRB   1,061,596       1,062,115       926,635       939,356       1,029,276  
    Interest-bearing deposits in financial institutions   103,400       99,303       98,673       103,417       102,527  
    Total Cash and Cash Equivalents   1,296,064       1,301,446       1,101,110       1,128,357       1,215,752  
    Securities available for sale   2,363,176       2,250,679       2,204,101       2,129,342       1,963,453  
    Securities held to maturity   212,422       212,488       312,510       477,592       547,854  
    Less: allowance for credit losses   (77 )     (79 )     (82 )     (84 )     (85 )
    Securities held to maturity, net of allowance for credit losses   212,345       212,409       312,428       477,508       547,769  
    Other equity securities   12,681       13,566       13,661       13,792       14,062  
    FHLB stock   12,134       12,134       12,139       21,372       16,634  
    Total Securities   2,600,336       2,488,788       2,542,329       2,642,014       2,541,918  
    Mortgage loans held for sale   264,320       200,762       150,727       149,987       188,048  
    Loans, net of unearned income and deferred costs   11,412,518       11,451,747       11,452,343       11,329,021       11,172,971  
    Less: Allowance for credit losses   (123,191 )     (125,552 )     (125,835 )     (126,461 )     (125,159 )
    Net Loans   11,289,327       11,326,195       11,326,508       11,202,560       11,047,812  
    Premises and equipment, net   365,764       340,348       342,569       337,598       335,522  
    Goodwill   457,619       457,619       457,619       456,335       456,684  
    Other intangible assets, net   63,265       65,460       68,758       64,634       67,496  
    BOLI   279,325       277,434       279,293       277,445       275,240  
    Other assets   572,000       610,791       615,324       576,109       551,884  
    TOTAL ASSETS $ 17,188,020     $ 17,068,843     $ 16,884,237     $ 16,835,039     $ 16,680,356  
    LIABILITIES AND EQUITY                  
    Deposits:                  
    Noninterest-bearing demand $ 4,267,628     $ 4,303,773     $ 4,194,132     $ 4,342,701     $ 4,444,861  
    Interest-bearing:                  
    Demand and money market accounts   6,990,103       6,940,086       6,916,701       6,757,619       6,764,415  
    Savings   319,970       312,881       326,179       336,492       350,031  
    Certificates of deposit   2,785,469       2,715,848       2,689,062       2,456,394       2,321,498  
    Total Deposits   14,363,170       14,272,588       14,126,074       13,893,206       13,880,805  
    Advances from the FHLB   3,405       3,591       3,775       203,958       104,139  
    Subordinated debt, net   256,444       256,227       256,011       255,796       255,580  
    Repurchase agreements and other borrowings   30,970       35,351       31,198       32,826       47,315  
    Total Borrowings   290,819       295,169       290,984       492,580       407,034  
    Other liabilities   371,316       411,770       401,307       393,375       408,305  
    TOTAL LIABILITIES   15,025,305       14,979,527       14,818,365       14,779,161       14,696,144  
                       
    Preferred stock   —       —       —       —       —  
    Common stock, $1.667 par value   125,139       125,090       125,009       124,847       124,837  
    Capital surplus   1,117,279       1,115,759       1,114,038       1,112,761       1,111,152  
    Retained earnings   985,343       961,162       937,065       921,126       911,042  
    Common stock issued to deferred compensation trust, at cost   (22,224 )     (22,756 )     (20,915 )     (20,813 )     (20,740 )
    Deferred compensation trust   22,224       22,756       20,915       20,813       20,740  
    Accumulated other comprehensive income (loss)   (81,482 )     (129,224 )     (126,586 )     (118,762 )     (179,043 )
    TOTAL SHAREHOLDERS’ EQUITY   2,146,279       2,072,787       2,049,526       2,039,972       1,967,988  
    Noncontrolling interest   16,436       16,529       16,346       15,906       16,224  
    TOTAL EQUITY   2,162,715       2,089,316       2,065,872       2,055,878       1,984,212  
    TOTAL LIABILITIES AND EQUITY $ 17,188,020     $ 17,068,843     $ 16,884,237     $ 16,835,039     $ 16,680,356  
     
    TOWNEBANK
    Consolidated Statements of Income – Five Quarter Trend (unaudited)
    (dollars in thousands, except share data)
       
       
      Three Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,
        2024       2024       2024       2023       2023  
    INTEREST INCOME:                  
    Loans, including fees $ 155,792     $ 154,549     $ 150,974     $ 146,810     $ 143,605  
    Investment securities   22,334       22,928       19,996       20,464       20,292  
    Interest-bearing deposits in financial institutions and federal funds sold   15,249       14,512       14,234       13,967       15,031  
    Mortgage loans held for sale   3,247       2,945       1,716       2,886       3,928  
    Total interest income   196,622       194,934       186,920       184,127       182,856  
    INTEREST EXPENSE:                  
    Deposits   82,128       82,023       78,388       73,200       64,171  
    Advances from the FHLB   29       942       2,438       917       3,438  
    Subordinated debt, net   2,237       2,236       2,236       2,236       2,245  
    Repurchase agreements and other borrowings   (54 )     685       640       41       (56 )
    Total interest expense   84,340       85,886       83,702       76,394       69,798  
    Net interest income   112,282       109,048       103,218       107,733       113,058  
    PROVISION FOR CREDIT LOSSES   (1,100 )     (177 )     (877 )     2,446       1,007  
    Net interest income after provision for credit losses   113,382       109,225       104,095       105,287       112,051  
    NONINTEREST INCOME:                  
    Residential mortgage banking income, net   11,786       13,422       10,477       8,035       10,648  
    Insurance commissions and related income, net   25,727       24,031       25,539       21,207       23,777  
    Property management income, net   11,221       14,312       16,773       7,358       12,800  
    Real estate brokerage income, net   —       —       —       (32 )     (63 )
    Service charges on deposit accounts   3,117       3,353       3,079       3,056       2,823  
    Credit card merchant fees, net   1,830       1,662       1,551       1,476       2,006  
    Investment commissions, net   2,835       2,580       2,343       2,380       2,363  
    BOLI   1,886       3,238       1,842       2,206       1,814  
    Other income   3,834       3,324       2,206       2,127       3,638  
    Net gain/(loss) on investment securities   —       —       74       —       —  
    Total noninterest income   62,236       65,922       63,884       47,813       59,806  
    NONINTEREST EXPENSE:                  
    Salaries and employee benefits   72,123       71,349       71,377       66,035       67,258  
    Occupancy   9,351       9,717       9,422       9,308       9,027  
    Furniture and equipment   4,657       4,634       4,478       4,445       4,100  
    Amortization – intangibles   3,130       3,298       3,246       3,411       3,610  
    Software   6,790       7,056       6,100       6,743       6,130  
    Data processing   4,701       4,606       3,916       3,529       4,140  
    Professional fees   4,720       3,788       3,180       3,339       2,770  
    Advertising and marketing   4,162       3,524       4,582       3,377       3,653  
    Other expenses   17,266       16,012       19,290       21,708       17,014  
    Total noninterest expense   126,900       123,984       125,591       121,895       117,702  
    Income before income tax expense and noncontrolling interest   48,718       51,163       42,388       31,205       54,155  
    Provision for income tax expense   5,592       8,124       7,261       2,660       9,410  
    Net income   43,126       43,039       35,127       28,545       44,745  
    Net income attributable to noncontrolling interest   (177 )     (183 )     (440 )     259       117  
    Net income attributable to TowneBank $ 42,949     $ 42,856     $ 34,687     $ 28,804     $ 44,862  
    Per common share information                  
    Basic earnings $ 0.57     $ 0.57     $ 0.46     $ 0.39     $ 0.60  
    Diluted earnings $ 0.57     $ 0.57     $ 0.46     $ 0.39     $ 0.60  
    Basic weighted average shares outstanding   74,940,827       74,925,877       74,816,420       74,773,335       74,750,294  
    Diluted weighted average shares outstanding   75,141,661       75,037,955       74,979,501       74,793,557       74,765,515  
    Cash dividends declared $ 0.25     $ 0.25     $ 0.25     $ 0.25     $ 0.25  
                       
    TOWNEBANK
    Banking Segment Financial Information (unaudited)
    (dollars in thousands)
     
                       
      Three Months Ended   Nine Months Ended   Increase/(Decrease)
      September 30,   June 30,   September 30,   YTD 2024 over 2023
        2024       2023       2024       2024       2023     Amount   Percent
    Revenue                          
    Net interest income $ 111,569     $ 112,189     $ 108,029     $ 322,280     $ 349,165     $ (26,885 )   (7.70 )%
    Service charges on deposit accounts   3,117       2,823       3,352       9,548       8,577       971     11.32 %
    Credit card merchant fees   1,830       2,006       1,662       5,042       5,232       (190 )   (3.63 )%
    Investment commissions, net   2,835       2,363       2,580       7,759       6,581       1,178     17.90 %
    Other income   4,828       4,224       4,840       13,096       12,012       1,084     9.02 %
    Subtotal   12,610       11,416       12,434       35,445       32,402       3,043     9.39 %
    Net gain/(loss) on investment securities   —       —       —       74       —       74     N/M
    Total noninterest income   12,610       11,416       12,434       35,519       32,402       3,117     9.62 %
    Total revenue   124,179       123,605       120,463       357,799       381,567       (23,768 )   (6.23 )%
                               
    Provision for credit losses   (1,043 )     1,206       (170 )     (2,189 )     16,442       (18,631 )   (113.31 )%
                               
    Expenses                          
    Salaries and employee benefits   47,148       42,727       46,640       140,261       128,161       12,100     9.44 %
    Occupancy   6,963       6,637       7,194       21,217       19,717       1,500     7.61 %
    Furniture and equipment   3,878       3,273       3,810       11,336       10,150       1,186     11.68 %
    Amortization of intangible assets   1,072       1,296       1,117       3,352       3,918       (566 )   (14.45 )%
    Other expenses   26,674       22,595       23,587       77,215       80,215       (3,000 )   (3.74 )%
    Total expenses   85,735       76,528       82,348       253,381       242,161       11,220     4.63 %
    Income before income tax, corporate allocation and noncontrolling interest   39,487       45,871       38,285       106,607       122,964       (16,357 )   (13.30 )%
    Corporate allocation   1,223       1,291       1,232       3,524       3,763       (239 )   (6.35 )%
    Income before income tax provision and noncontrolling interest   40,710       47,162       39,517       110,131       126,727       (16,596 )   (13.10 )%
    Provision for income tax expense   3,495       7,440       5,130       12,731       21,204       (8,473 )   (39.96 )%
    Net income   37,215       39,722       34,387       97,400       105,523       (8,123 )   (7.70 )%
    Noncontrolling interest   (29 )     —       (58 )     34       —       34     N/M
    Net income attributable to TowneBank $ 37,186     $ 39,722     $ 34,329     $ 97,434     $ 105,523     $ (8,089 )   (7.67 )%
                               
    Efficiency ratio (non-GAAP)   68.18 %     60.86 %     67.43 %     69.89 %     62.44 %     7.45 %   11.93 %
     
    TOWNEBANK
    Realty Segment Financial Information (unaudited)
    (dollars in thousands)
     
           
      Three Months Ended   Nine Months Ended   Increase/(Decrease)
      September 30,   June 30,   September 30,   YTD 2024 over 2023
        2024       2023       2024       2024       2023     Amount   Percent
    Revenue                          
    Residential mortgage brokerage income, net $ 12,211     $ 10,955     $ 13,996     $ 37,006     $ 32,964     $ 4,042     12.26 %
    Real estate brokerage income, net   —       (63 )     —       —       3,562       (3,562 )   (100.00 )%
    Title insurance and settlement fees   —       —       —       —       443       (443 )   (100.00 )%
    Property management fees, net   11,221       12,800       14,312       42,306       40,433       1,873     4.63 %
    Income (loss) from unconsolidated subsidiary   51       (63 )     67       148       (884 )     1,032     116.74 %
    Gain on equity investment   —       —       —       —       8,833       (8,833 )   (100.00 )%
    Net interest and other income   906       1,163       1,317       3,007       1,984       1,023     51.56 %
    Total revenue   24,389       24,792       29,692       82,467       87,335       (4,868 )   (5.57 )%
                               
    Provision for credit losses   (57 )     (199 )     (7 )     35       (210 )     245     116.67 %
                               
    Expenses                          
    Salaries and employee benefits   12,355       12,881       12,370       36,913       41,670       (4,757 )   (11.42 )%
    Occupancy   1,638       1,669       1,811       5,019       5,559       (540 )   (9.71 )%
    Furniture and equipment   604       600       596       1,794       1,933       (139 )   (7.19 )%
    Amortization of intangible assets   637       742       781       2,094       2,166       (72 )   (3.32 )%
    Other expenses   8,839       9,544       9,136       26,174       27,319       (1,145 )   (4.19 )%
    Total expenses   24,073       25,436       24,694       71,994       78,647       (6,653 )   (8.46 )%
                               
    Income before income tax, corporate allocation and noncontrolling interest   373       (445 )     5,005       10,438       8,898       1,540     17.31 %
    Corporate allocation   (484 )     (600 )     (490 )     (1,322 )     (1,800 )     478     (26.56 )%
    Income before income tax provision and noncontrolling interest   (111 )     (1,045 )     4,515       9,116       7,098       2,018     28.43 %
    Provision for income tax expense   18       (99 )     1,163       2,336       1,769       567     32.05 %
    Net income   (129 )     (946 )     3,352       6,780       5,329       1,451     27.23 %
    Noncontrolling interest   (148 )     117       (125 )     (834 )     (1,680 )     846     (50.36 )%
    Net income attributable to TowneBank $ (277 )   $ (829 )   $ 3,227     $ 5,946     $ 3,649     $ 2,297     62.95 %
                               
    Efficiency ratio excluding gain on equity investment (non-GAAP)   96.09 %     99.61 %     80.54 %     84.76 %     97.43 %   (12.67 )%   (13.00 )%
                               
    TOWNEBANK
    Insurance Segment Financial Information (unaudited)
    (dollars in thousands)
     
                       
      Three Months Ended   Nine Months Ended   Increase/(Decrease)
      September 30,   June 30,   September 30,   YTD 2024 over 2023
        2024       2023       2024       2024       2023     Amount   Percent
    Commission and fee income                          
    Property and casualty $ 23,157     $ 22,103     $ 22,225     $ 66,104     $ 60,259     $ 5,845     9.70 %
    Employee benefits   4,483       4,245       4,404       13,712       13,393       319     2.38 %
    Specialized benefit services   —       133       —       10       445       (435 )   (97.75 )%
    Total commissions and fees   27,640       26,481       26,629       79,826       74,097       5,729     7.73 %
                               
    Contingency and bonus revenue   2,731       2,335       2,951       10,185       9,343       842     9.01 %
    Other income   25       557       6       41       573       (532 )   (92.84 )%
    Total revenue   30,396       29,373       29,586       90,052       84,013       6,039     7.19 %
                               
    Employee commission expense   4,446       4,906       4,771       13,728       14,340       (612 )   (4.27 )%
    Revenue, net of commission expense   25,950       24,467       24,815       76,324       69,673       6,651     9.55 %
                               
    Salaries and employee benefits   12,620       11,650       12,339       37,675       34,293       3,382     9.86 %
    Occupancy   750       721       712       2,254       2,303       (49 )   (2.13 )%
    Furniture and equipment   175       227       228       639       650       (11 )   (1.69 )%
    Amortization of intangible assets   1,421       1,572       1,400       4,229       4,660       (431 )   (9.25 )%
    Other expenses   2,126       1,568       2,263       6,303       4,614       1,689     36.61 %
    Total operating expenses   17,092       15,738       16,942       51,100       46,520       4,580     9.85 %
    Income before income tax, corporate allocation and noncontrolling interest   8,858       8,729       7,873       25,224       23,153       2,071     8.94 %
    Corporate allocation   (739 )     (691 )     (742 )     (2,202 )     (1,963 )     (239 )   12.18 %
    Income before income tax provision and noncontrolling interest   8,119       8,038       7,131       23,022       21,190       1,832     8.65 %
    Provision for income tax expense   2,079       2,069       1,831       5,910       5,451       459     8.42 %
    Net income   6,040       5,969       5,300       17,112       15,739       1,373     8.72 %
    Noncontrolling interest   —       —       —       —       —       —     — %
    Net income attributable to TowneBank $ 6,040     $ 5,969     $ 5,300     $ 17,112     $ 15,739     $ 1,373     8.72 %
                               
    Provision for income taxes   2,079       2,069       1,831       5,910       5,451       459     8.42 %
    Depreciation, amortization and interest expense   1,550       1,726       1,529       4,632       5,115       (483 )   (9.44 )%
    EBITDA (non-GAAP) $ 9,669     $ 9,764     $ 8,660     $ 27,654     $ 26,305     $ 1,349     5.13 %
                               
    Efficiency ratio (non-GAAP)   60.44 %     59.21 %     62.63 %     61.43 %     60.55 %     0.88 %   1.45 %
     
    TOWNEBANK
    Reconciliation of Non-GAAP Financial Measures
    (dollars in thousands)
             
      Three Months Ended   Nine Months Ended
      September 30,   September 30,   June 30,   September 30,   September 30,
        2024       2023       2024       2024       2023  
                       
    Return on average assets (GAAP)   1.00 %     1.06 %     1.01 %     0.95 %     1.00 %
    Impact of excluding average goodwill and other intangibles and amortization   0.09 %     0.11 %     0.10 %     0.09 %     0.11 %
    Return on average tangible assets (non-GAAP)   1.09 %     1.17 %     1.11 %     1.04 %     1.11 %
                       
    Return on average equity (GAAP)   8.12 %     8.96 %     8.43 %     7.80 %     8.48 %
    Impact of excluding average goodwill and other intangibles and amortization   3.30 %     4.01 %     3.60 %     3.31 %     3.87 %
    Return on average tangible equity (non-GAAP)   11.42 %     12.97 %     12.03 %     11.11 %     12.35 %
                       
    Return on average common equity (GAAP)   8.18 %     9.04 %     8.49 %     7.86 %     8.54 %
    Impact of excluding average goodwill and other intangibles and amortization   3.36 %     4.07 %     3.67 %     3.37 %     3.95 %
    Return on average tangible common equity
    (non-GAAP)    		   11.54 %     13.11 %     12.16 %     11.23 %     12.49 %
                       
    Book value (GAAP) $ 28.59     $ 26.28     $ 27.62     $ 28.59     $ 26.28  
    Impact of excluding average goodwill and other intangibles and amortization   (6.94 )     (7.00 )     (6.97 )     (6.94 )     (7.00 )
    Tangible book value (non-GAAP) $ 21.65     $ 19.28     $ 20.65     $ 21.65     $ 19.28  
                       
    Efficiency ratio (GAAP)   72.71 %     68.09 %     70.86 %     72.88 %     68.20 %
    Impact of exclusions (1.78 )%   (1.88 )%   (1.88 )%   (1.86 )%   (0.82 )%
    Efficiency ratio (non-GAAP)   70.93 %     66.21 %     68.98 %     71.02 %     67.38 %
                       
    Average assets (GAAP) $ 17,028,141     $ 16,762,859     $ 16,982,482     $ 16,958,540     $ 16,647,804  
    Less: average goodwill and intangible assets   522,219       526,445       525,122       523,335       526,375  
    Average tangible assets (non-GAAP) $ 16,505,922     $ 16,236,414     $ 16,457,360     $ 16,435,205     $ 16,121,429  
                       
    Average equity (GAAP) $ 2,105,049     $ 1,986,469     $ 2,045,622     $ 2,063,800     $ 1,970,510  
    Less: average goodwill and intangible assets   522,219       526,445       525,122       523,335       526,375  
    Average tangible equity (non-GAAP) $ 1,582,830     $ 1,460,024     $ 1,520,500     $ 1,540,465     $ 1,444,135  
                       
    Average common equity (GAAP) $ 2,088,674     $ 1,969,898     $ 2,029,150     $ 2,047,482     $ 1,954,850  
    Less: average goodwill and intangible assets   522,219       526,445       525,122       523,335       526,375  
    Average tangible common equity (non-GAAP) $ 1,566,455     $ 1,443,453     $ 1,504,028     $ 1,524,147     $ 1,428,475  
                       
    Net income (GAAP) $ 42,949     $ 44,862     $ 42,856     $ 120,492     $ 124,911  
    Amortization of intangibles, net of tax   2,473       2,852       2,605       7,643       8,488  
    Tangible net income (non-GAAP) $ 45,422     $ 47,714     $ 45,461     $ 128,135     $ 133,399  
                       
    Total revenue (GAAP) $ 174,518     $ 172,864     $ 174,970     $ 516,590     $ 538,575  
    Net (gain)/loss on investment securities   —       —       —       (74 )     —  
    Other nonrecurring (income) loss   (20 )     (554 )     —       (20 )     (9,386 )
    Total Revenue for efficiency calculation (non-GAAP) $ 174,498     $ 172,310     $ 174,970     $ 516,496     $ 529,189  
                       
    Noninterest expense (GAAP) $ 126,900     $ 117,702     $ 123,984     $ 376,475     $ 367,328  
    Less: amortization of intangibles   3,130       3,610       3,298       9,675       10,744  
    Noninterest expense net of amortization (non-GAAP) $ 123,770     $ 114,092     $ 120,686     $ 366,800     $ 356,584  
     
    TOWNEBANK
    Reconciliation of Non-GAAP Financial Measures
    (dollars in thousands, except per share data)
                         
                         
    Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability   Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
          2024       2024       2023       2023       2023  
    Net income (GAAP)   $ 42,949     $ 42,856     $ 34,687     $ 28,804     $ 44,862  
                         
    Adjustments                    
    Plus: Acquisition-related expenses, net of tax     460       18       564       56       458  
    Plus: FDIC special assessment, net of tax     —       (310 )     1,021       4,083       —  
    Less: Gain on sale of equity investments, net of noncontrolling interest     (16 )     —       —       (1,846 )     (438 )
    Core operating earnings, excluding certain items affecting comparability (non-GAAP)   $ 43,393     $ 42,564     $ 36,272     $ 31,097     $ 44,882  
    Weighted average diluted shares     75,141,661       75,037,955       74,979,501       74,793,557       74,765,515  
    Diluted EPS (GAAP)   $ 0.57     $ 0.57     $ 0.46     $ 0.39     $ 0.60  
    Diluted EPS, excluding certain items affecting comparability (non-GAAP)   $ 0.58     $ 0.57     $ 0.48     $ 0.42     $ 0.60  
    Average assets   $ 17,028,141     $ 16,982,482     $ 16,864,235     $ 16,683,041     $ 16,762,859  
    Average tangible equity   $ 1,582,830     $ 1,520,500       1,517,600     $ 1,465,216     $ 1,460,024  
    Average common tangible equity   $ 1,566,455     $ 1,504,028     $ 1,501,494     $ 1,449,052     $ 1,443,453  
    Return on average assets, excluding certain items affecting comparability (non-GAAP)     1.01 %     1.01 %     0.87 %     0.74 %     1.06 %
    Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)     11.53 %     11.95 %     10.29 %     9.15 %     12.97 %
    Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)     11.65 %     12.08 %     10.40 %     9.25 %     13.13 %
    Efficiency ratio, excluding certain items affecting comparability (non-GAAP)     72.45 %     70.85 %     74.84 %     78.33 %     67.76 %
                         
    TOWNEBANK
    Reconciliation of Non-GAAP Financial Measures
    (dollars in thousands, except per share data)
             
             
    Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability   Nine Months Ended
        September 30,   September 30,
          2024       2023  
    Net income (GAAP)   $ 120,492     $ 124,911  
             
    Adjustments        
    Plus: Acquisition-related expenses, net of tax     1,040       7,718  
    Plus: FDIC special assessment, net of tax     711       —  
    Plus: Initial provision for acquired loans, net of tax     —       3,166  
    Less: Gain on sale of equity investments, net of noncontrolling interest and tax     (16 )     (5,951 )
    Core operating earnings, excluding certain items affecting comparability (non-GAAP)   $ 122,227     $ 129,844  
    Weighted average diluted shares     75,043,848       74,618,743  
    Diluted EPS (GAAP)   $ 1.61     $ 1.67  
    Diluted EPS, excluding certain items affecting comparability (non-GAAP)   $ 1.63     $ 1.74  
    Average assets   $ 16,958,540     $ 16,647,804  
    Average tangible equity   $ 1,540,465     $ 1,444,135  
    Average tangible common equity   $ 1,524,147     $ 1,428,475  
    Return on average assets, excluding certain items affecting comparability (non-GAAP)     0.96 %     1.04 %
    Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)     11.26 %     12.81 %
    Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)     11.38 %     12.95 %
    Efficiency ratio, excluding certain items affecting comparability (non-GAAP)     72.68 %     67.61 %

    The MIL Network –

  • MIL-OSI: TransAlta Declares Dividends

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 23, 2024 (GLOBE NEWSWIRE) — The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) declared a quarterly dividend of $0.06 per common share payable on January 1, 2025, to shareholders of record at the close of business on December 1, 2024.

    The Board of Directors also declared the following quarterly dividend on its Cumulative Redeemable Rate Reset First Preferred Shares for the period starting from and including September 30, 2024, up to but excluding December 31, 2024:

    Preferred Shares TSX Stock Symbol Dividend Rate Dividend Per Share Record Date Payment Date
    Series A TA.PR.D 2.877% $0.17981 December 1, 2024 December 31, 2024
    Series B* TA.PR.E 6.235% $0.39182 December 1, 2024 December 31, 2024
    Series C TA.PR.F 5.854% $0.36588 December 1, 2024 December 31, 2024
    Series D* TA.PR.G 7.305% $0.45906 December 1, 2024 December 31, 2024
    Series E TA.PR.H 6.894% $0.43088 December 1, 2024 December 31, 2024
    Series G TA.PR.J 6.773% $0.42331 December 1, 2024 December 31, 2024

    * Please note the quarterly floating rate on the Series B and Series D Preferred Shares will be reset every quarter.

    All currency is expressed in Canadian dollars except where noted. When the dividend payment date falls on a weekend or holiday the payment is made the following business day.

    About TransAlta Corporation:

    TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 113 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

    For more information about TransAlta, visit our web site at transalta.com.

    For more information:

    Investor Inquiries: Media Inquiries:
    Phone: 1-800-387-3598 in Canada and US Phone: 1-855-255-9184
    Email: investor_relations@transalta.com Email: ta_media_relations@transalta.com

    The MIL Network –

  • MIL-OSI: STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates the Merger of Atlantic Union Bankshares Corp. – AUB

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Atlantic Union Bankshares Corp. (NYSE: AUB), relating to a proposed merger with Sandy Spring Bancorp, Inc. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 shares of AUB, and cash in lieu of fractional shares.

    Click here for more information https://monteverdelaw.com/case/atlantic-union-bankshares-corp/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com).  Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network –

  • MIL-OSI USA: Hold DOJ Accountable for Failure to Prosecute Noncitizen Voter Registration

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    It should be obvious to everyone — even Democrats — that we should prevent illegal immigrants from voting. Unfortunately, most Democrats in Congress do not agree. I was happy to cosponsor the SAVE Act in the Senate. This legislation aimed to secure our elections by requiring proof of citizenship to vote. It passed in the House, but not the Senate.

    On October 2, I joined Republican colleagues in a letter to U.S. Attorney General Merrick Garland exposing the Department of Justice’s (DOJ) failure to prevent noncitizens from registering to vote in America’s federal elections and its refusal to prosecute those who have done so. 

    We need more information about the incidence of noncitizens registering to vote, and steps that the DOJ is taking to deal with the issue and secure U.S. elections.

    In recent weeks, I have written two op-eds highlighting my concerns with election integrity. I urge you to read both.

    The Daily Caller: FBI Ignoring Real Threats To Election Integrity

    The Federalist: Democrat-Controlled States Refuse To Clean Voter Rolls And Fix Election Problems

    Under the Biden-Harris administration, more than 500,000 unaccompanied migrant children have crossed the southwest border without a parent or guardian to provide care.

    Last month, I joined a letter to President Biden and Vice President Harris calling out abuses in their Unaccompanied Migrant Children Program, namely the Department of Health and Human Services (HHS)’s cover-up of the crisis. HHS has failed to comply with two out of three Department of Homeland Security subpoenas and other information requests issued amid its investigation into more than 100 suspicious sponsors.

    The Biden-Harris administration limited background checks for sponsors of unaccompanied children, cut back on familial DNA testing at the border, and decreased information sharing with law enforcement.

    Cartel trafficking activity surged an estimated 2,500% from the Trump administration to the middle of the Biden-Harris term in 2022.  

    I joined another letter demanding Biden and Harris collect DNA samples from every immigrant the Department of Homeland Security (DHS) encounters, per the DNA Fingerprint Act of 2005. DHS missed three separate opportunities to gather DNA from the illegal immigrant who murdered Rachel Morin, a Maryland mother of five.

    MILTON: The Milton Area Chamber of Commerce hosted a town hall at the Milton House Museum. Before the event, I took a fascinating tour of Wisconsin’s only certified Underground Railroad site which is designated a National Historic Landmark.

    REESEVILLE:  Caine Warehousing hosted a town hall at their Dodge County campus. It was an honor to meet the three generations of Caines who run this successful family business. 

    WATERTOWN:  American Disposal and Lueck Recycling, another family run business, hosted a town hall at their facility. People are very concerned about open borders, the economy, and parental rights. 

    WATERTOWN: I always look forward to my visits to Maranatha Baptist University. I held a meeting with campus leadership and then answered questions from students, staff, and community members.  

    WHITEWATER: I enjoyed meeting with students at the University of Wisconsin Whitewater. When asked by a campus reporter about my main message for young people, I responded “jealously guard your freedom.” 

    MIL OSI USA News –

  • MIL-OSI USA: FBI Ignoring Real Threats To Election Integrity

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    Originally appeared in The Daily Caller

    I entered the Senate SCIF (sensitive compartmented information facility) Sept. 25 to attend an “All Members Classified Briefing on Foreign Threats to U.S. Elections.” I was a little late and arrived during the presentation of Avril Haines, the Director of National Intelligence. Her presentation was followed by FBI Director Christopher Wray and CISA Director Jen Easterly. As Republican Utah Sen. Mike Lee, quoting Yogi Berra, later described the briefing, “It was deja vu all over again.” 

    With straight faces, these directors of federal intelligence and law enforcement were once again warning the U.S. Senate that foreign actors were trying to influence our election. Well, duh! Unfortunately, most of my Senate colleagues seemed to be lapping it up and taking the briefing seriously. After a few minutes of listening to Director Haines, I could only shake my head in disgust. 

    I fully acknowledge that foreign threats are real and serious, but we are well aware they exist and have been persistent for decades. Except for maybe a few specific details, I heard nothing new, and certainly nothing that should be considered or kept classified. And I heard absolutely nothing about the most egregious examples of election interference in our lifetime, or the most significant threats to the integrity of the 2024 election. 

    I was the last senator given the opportunity to ask a question. By this time, there were only four senators left in the briefing. I began my questioning by pointing out that the most egregious act of election interference in our lifetime was the letter solicited by current Secretary of State Antony Blinken, engineered by former Deputy CIA Director Mike Morrell and fast tracked by then-CIA Director Gina Haspel. That letter was written Oct. 19, 2020, less than a month before the November election.  

    A bipartisan group of former U.S. intelligence officials signed the letter, which stated, without evidence, that the Hunter Biden laptop “has all the classic earmarks of a Russian information operation.” Keep in mind, the FBI had seized Hunter’s laptop almost a year earlier and knew full well it was authentic. In the small world and circles of U.S. intelligence and law enforcement, it is inconceivable that those intelligence officials were unaware or unable to ascertain that fact.  

    That letter itself was a “U.S. intelligence information operation.” And it worked exceedingly well. Because of that letter, the Hunter Biden laptop story was effectively suppressed as Russian disinformation, and Joe Biden became president. Subsequent polls show that had the public known about the laptop, Joe Biden would have lost the election. Election interference doesn’t get more egregious or effective than that.

    After making that point, I asked who within the Office of the Director of National Intelligence directed the unsolicited August 2020 FBI briefing given separately to Republican Iowa Sen. Chuck Grassley and me. That briefing, about us being targets of Russian disinformation, also provided no new information and was later leaked to the Washington Post to smear me, thereby interfering in my 2022 reelection. Four years after the briefing, and our relentless efforts to find out who directed it, we still have not been told. I didn’t get the answer Wednesday either.  

    Next, I asked Director Wray what the FBI was doing to investigate smurfing. This clear violation of campaign finance law was first revealed in March 2023 by investigative journalist, James O’Keefe. Using ActBlue, the Democrats’ donation platform, thousands of low-dollar donations are attributed to individuals allegedly without their knowledge — in one instance 5,776 donations totaling $754,124. Director Wray seemed clueless on the issue, and had no idea if the FBI was doing anything to investigate it. 

    At that point, the Democrat senator who chaired the briefing, concluded it. I wasn’t able to ask about my greatest concern regarding the 2024 election — illegal immigrants registering and voting in it. Don’t be under the illusion that just because noncitizens are ineligible to vote, Democrats aren’t willing to overlook that legal technicality to win an election. We already have plenty of evidence that illegal immigrants are registering, sometimes without their knowledge. Ohio just purged 499 illegal immigrants from its voter rolls following a multi-phase audit. Boston officials disclosed that 70 illegal aliens contacted county election officials asking to be  removed from voter registration lists. Virginia recently cancelled 6,303 noncitizen voter registrations. Oregon “mistakenly registered nearly 1,260 possible noncitizens to vote,” its DMV admits.  

    President Biden threw open the borders and directed federal departments to register voters. Does anyone believe that registration effort will be non-partisan, or that some percentage of the millions of illegal immigrants won’t vote in November? Based on last Wednesday’s briefing, I’m confident federal law enforcement won’t have any interest in investigating those crimes either.

    Ron Johnson is a Republican senator from Wisconsin.

    MIL OSI USA News –

  • MIL-OSI USA: Brownley, Budzinski Introduce Legislation to Establish VA Veterans Experience Office and Amplify Veteran Voices on Care and Services

    Source: United States House of Representatives – Julia Brownley (D-CA)

    Washington, DC – Today, Congresswoman Julia Brownley (CA-26) and Congresswoman Nikki Budzinski (IL-13) announced the introduction of the Improving Veterans Experience Act, a bill to codify the Veterans Experience Office (VEO) within the U.S. Department of Veterans Affairs (VA). Established in 2015, the VEO gathers feedback directly from veterans, their families, and caregivers on their experience with VA and incorporates the information to improve services. The VEO has been crucial to improving veterans’ trust in VA outpatient care, expanding outreach to women veterans, and creating a more effective and supportive mobile app that provides veterans with information and resources about care and benefits.

    “As a member of the House Veterans’ Affairs Committee, one of my primary goals has been to ensure our nation’s veterans have access to the timely, high-quality care they have earned. By permanently establishing the Veterans Experience Office, the VA can continue to carry out its mission to provide the highest quality customer experience when delivering care, benefits, and services to veterans and their families. I applaud Congresswoman Budzinski’s leadership and commitment to fulfilling the solemn promise of serving our veterans as well as they have served our country,” said Congresswoman Brownley, Ranking Member of the House Veterans’ Affairs Subcommittee on Health.

    “There is no better way to improve VA services than to hear from the veterans, family members and caregivers who are navigating the process firsthand,” said Congresswoman Budzinski. “Too often, a lack of trust, complicated documents and confusing processes discourage veterans from reaching out for the help they need. By giving veterans a voice and putting their insights into action, the VEO has been instrumental in making VA services more accessible. Veterans can only receive the excellent care they deserve when their feedback is prioritized and I’m proud to introduce this legislation alongside Congresswoman Brownley to ensure the VEO can continue to build trust and improve veterans’ experiences with the VA.”

    “The Veterans Experience Office (VEO) serves as the customer experience engine reflecting the voice of the veteran. Since its establishment in 2015, veterans trust in the VA has increased by 25%, reaching all-time highs. DAV thanks Rep. Budzinski for introducing the Improving Veterans Experience Act of 2024, which would codify the VEO within the VA and allow it to continue collecting essential feedback from veterans, their families and caregivers on how to enhance VA services,” said Joy Ilem, National Legislative Director of Disabled American Veterans.

    In 2016, the VEO helped launch the first VA-wide customer experience survey to collect feedback on the ease, effectiveness and emotional resonance of VA services. According to the VA, veteran trust in the agency has increased by 25% since the survey was established, reaching all-time highs. In 2018, the VEO overhauled the VA website after hearing extensive feedback from veterans that it was difficult to use. 

    The Improving Veterans Experience Act is endorsed by Disabled American Veterans (DAV) and Paralyzed Veterans of America (PVA). 

    Read the full text of the bill here.    

    ###

    Issues: 118th Congress, Veterans’ Affairs

    MIL OSI USA News –

  • MIL-OSI USA: Brownley, Schneider, Kildee Introduce Legislation to Expand Sustainable Aviation Fuel Production and Reduce Carbon Emissions

    Source: United States House of Representatives – Julia Brownley (D-CA)

    Washington, DC – Today, Congresswoman Julia Brownley (CA-26), Congressman Brad Schneider (IL-10), and Congressman Dan Kildee (MI-08) announced the introduction of the Expanding Clean Fuel Production Act, a bill that would extend the clean fuel production tax credit, also known as Section 45z, of the Inflation Reduction Act for 10 years. The Inflation Reduction Act created the clean fuel production credit (CFPC) for transportation fuel with zero or low greenhouse gas emissions, including sustainable aviation fuel (SAF). This credit currently expires at the end of 2027. 

    “The 45z tax credit has been critical in helping to ramp up U.S. production of sustainable aviation fuel,” said Congresswoman Brownley. “However, we need to extend the credit long-term to provide market certainty and to ensure a safe and reliable supply of SAF to meet the needs of the aviation industry. I appreciate Congressman Schneider and Congressman Kildee’s partnership on this bill, and I look forward to working with stakeholders in the environmental, energy, and aviation community to extend the 45z credit and promote U.S. investment in this critical domestic fuel source.” 

    “I’m proud to introduce this legislation with Reps. Kildee and Brownley to extend the SAF credit, boost production of clean fuels and position the U.S. as a global leader in production and use of sustainable fuels,” said Congressman Schneider. “A ten-year extension would allow for sustained investment in production to accelerate the transition to cleaner fuels and to significantly cut greenhouse gas emissions from the aviation industry, in particular. We are already seeing the impact of the Inflation Reduction Act’s investments on U.S. production of sustainable fuels.” 

    “In my home state of Michigan, we have already seen the harmful effects of climate change on our Great Lakes,” said Congressman Kildee. “This legislation will help us continue producing clean energy and fuels here in the United States, to help create good paying jobs, provide new markets to Michigan farmers, and reduce carbon emissions from airplanes and other vehicles.”

    “As the leading U.S. airline in SAF use and advocacy, we know that extending incentives for U.S. SAF producers by a full ten years is a necessary first step to grow the industry,” said Lauren Riley, Chief Sustainability Officer for United Airlines. “The continued leadership of Representatives Schneider, Kildee and Brownley is helping to assure U.S. competitiveness in SAF and clean fuels, while boosting U.S. agricultural producers and rural communities. We look forward to working with Representatives Schneider, Kildee and Brownley and their colleagues on both sides of the aisle to ensure that this tax credit is both extended and enhanced in a way that will maximize investment in SAF and other clean, low-carbon fuels.” 

    “Sustainable Aviation Fuel (SAF) is the single most important method to decarbonize aviation in the coming decades, and LanzaJet applauds the leadership of Representatives Schneider, Kildee, and Brownley in advancing SAF tax incentives that will catalyze domestic investment in this critical sector,” said Jimmy Samartzis, LanzaJet CEO. “As the original sponsors of the IRA’s SAF Blender’s Tax Credit via the Sustainable Skies Act, Reps Schneider, Kildee, and Brownley continue to lay the foundation for a vibrant U.S. SAF industry by providing for ten years of policy certainty for domestic SAF producers via this important bill.  We look forward to continuing to work with Representatives Schneider, Kildee, and Brownley to develop policy proposals that will both extend and enhance the IRA’s short term SAF tax credits and enable achievement of the goals of the SAF Grand Challenge.”   

    “We applaud Representative Schneider and his colleagues Representatives Kildee and Brownley for their efforts to extend incentives for SAF,” said Alison Graab, Executive Director of the SAF Coalition. “We look forward to working with them on both an extension as well as enhancing and strengthening the incentive. Advancing sustainable aviation fuel demonstrates a clear commitment to the environmental and economic promises SAF holds, and incentives that are durable and attract investment are essential to unlocking that potential and driving the progress needed to sustain and grow the SAF industry.”

    The Inflation Reduction Act (IRA) of 2022 enacted a tax credit for the production of SAF, aiming to halve carbon emissions in the aviation sector. The credit was inspired by a SAF credit included in the Sustainable Skies Act, which Congresswoman Brownley authored with Representatives Schneider and Kildee in 2021. 

    ###

    Issues: 118th Congress, Climate Crisis, Energy and Environment, Transportation and Infrastructure

    MIL OSI USA News –

  • MIL-OSI USA: Schakowsky Statement on Passing of Hon. Delores Holmes

    Source: United States House of Representatives – Congresswoman Jan Schakowsky (9th District of Illinois)

    EVANSTON – Today, Congresswoman Jan Schakowsky (IL-09) released the following statement mourning the death of Hon. Delores Holmes:

    “The Evanston community has lost a kind and gracious leader, a fierce advocate, and a beloved mother, grandmother, and friend to many. Delores Holmes was a pillar in our community for well over half a century.

    “Not only was Delores an active member of the Foster Senior Club and the cherished Alderwoman from the 5th ward for 12 years, but she also worked alongside Bernice Weissbourd as the Director of Family Focus, a social service agency designed to assist children and families in our community, for roughly 27 years.

    “Delores was truly a treasured friend of mine. My heart breaks for her family and all those who loved her. She will be deeply missed by all corners of the Evanston community and beyond. Her impact will continue to be felt for generations to come.”

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Boyle Statement on Vandalism of Congregation Mikveh Israel

    Source: United States House of Representatives – Congressman Brendan Boyle (13th District of Pennsylvania)

    WASHINGTON, D.C. — Today, Congressman Brendan F. Boyle (PA-02) released the following statement on the recent vandalism and arson of the historic Congregation Mikveh Israel synagogue in his district:

    “I am appalled by the disgraceful vandalism and arson of the historic Congregation Mikveh Israel synagogue. I hope the perpetrator is quickly brought to justice and urge anyone with information to submit a tip to the Philadelphia Police Department. Philadelphia stands united against hatred and antisemitism, and we all have a responsibility to combat the unacceptable rise in antisemitism that our Jewish community has faced over the past year.”

    A surveillance photo and information on how to submit a tip to the Philadelphia Police Department can be found here.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Bonta Announces Awardees of 2024-2025 Tobacco Grant Program, Seizure of $1 Million of Illegal Flavored Tobacco Products

    Source: US State of California Department of Justice

    OAKLAND – California Attorney General Rob Bonta today announced the recipients of the California Department of Justice (DOJ)’s Fiscal Year 2024-2025 Proposition 56 Tobacco Grant Program. The grant recipients are 76 local government agencies located throughout the state, including law enforcement agencies, prosecuting agencies, public health departments, cities and counties that will receive more than $28.5 million to support their efforts to reduce illegal tobacco sales to underage youth. This year’s funding prioritized retail enforcement and education as part of Attorney General Bonta’s commitment to fighting the illegal sales and marketing of tobacco products to minors. Funded activities include “flavor ban” enforcement efforts, shoulder tap and minor decoy operations, retailer education programs, tobacco retail license inspections, task force coordination, training for officers on tobacco laws and ordinances, monitoring retailer compliance, and more.

    The Attorney General also announced the results of Operation Up in Smoke, the DOJ’s first-ever statewide retail tobacco enforcement operation. The operation targeted and seized illegal flavored tobacco products at retail locations and cited retailers who sell these products to minors. Fourteen local agencies, who were current and past recipients of the DOJ Tobacco Grant program, and two other state agencies were part of this year’s operation.

    “The alarming rise in youth exposure to nicotine, particularly though vaping and e-cigarette demands urgent and decisive action. At the California Department of Justice, we are doing just that and reaffirming our commitment to safeguarding youth from the harmful effects of nicotine products through strict enforcement,” said Attorney General Rob Bonta. “Our enforcement operation shows firsthand how we crack down on the sale and distribution of illegal tobacco products. Funds from today’s grants to partners across the state will allow us to continue holding accountable those who break the law, and ensure a healthier, safer future for the next generation.”

    “We look forward to our continued partnership with California Attorney General Rob Bonta and the Department of Justice to keep our community healthy and safe,” said Fresno City Attorney Andrew Janz. “In the City of Fresno, 85% of our schools have a smoke shop within a 1000-foot radius who routinely sell products that are designed by appearance and taste to appeal to minors.  This funding allows the City of Fresno to continue safeguarding our youth, preventing them from becoming the next generation of lifelong tobacco users.”

    “Everyone knows that tobacco products are marketed to teenagers to try to get them addicted at a young age,” said Long Beach City Prosecutor Doug Haubert. “In Long Beach, we are working with our law enforcement and health department partners to stop the sale of tobacco products to youth.  We are going to increase enforcement, especially targeting retailers who have a history of violations. We appreciate the opportunity to partner with California DOJ and Attorney General Rob Bonta as part of this statewide effort.”

    “The City of Vallejo is looking forward to utilizing this incredible $932,000 Tobacco Grant from the Department of Justice to help us with issues surrounding tobacco use by minors,” said Assistant City Manager of Vallejo Gillian Haen. “This generous grant will help our City with enforcement actions from retail inspections through enforcement as well as retailer and code enforcement education.”

    “The Modesto Police Department is thrilled to have received funding through the DOJ for Tobacco Enforcement,” said Modesto Police Department. “This support highlights our urgent need to combat the rising rates of tobacco use among youth in our community, particularly the alarming appeal of flavored tobacco products. We have already seen the overwhelming amount of these products in our city, and this grant will significantly enhance our enforcement efforts and educational initiatives and hold those accountable for targeting these harmful products that pose a significant risk to our children’s health. Additionally, we will address the criminal element that often surrounds tobacco retail stores, working to reduce illegal activities that compromise the safety of our neighborhoods. In collaboration with the Stanislaus County District Attorney’s Office, the City Attorney’s Office, and our community, we are committed to a comprehensive approach through enforcement, education, and prosecution. Together, we will create a safer environment for our youth and foster a healthier community.”

    “This grant gives us the tools to crackdown on those who sell tobacco and nicotine, including banned flavored tobacco products, to minors,” said Chula Vista Police Department. “This grant also gives CVPD the opportunity to conduct operations to gather information on persons selling narcotics to the public in licensed tobacco retail stores. By joining forces with the DOJ, we will be able to target and hold responsible anyone who harms our community and our youth under the guise of legitimate businesses.”

    “This grant will enable the City of Rancho Cordova to make significant progress in reducing the use of flavored tobacco products among the youth in the community,” said City of Rancho Cordova. “The city’s Code Enforcement team will carry out a comprehensive operation, engaging with every tobacco retailer in the city to provide education and resources aimed at ensuring compliance.”

    Tobacco use is the number one preventable killer in the United States. Smoking-related illness accounts for approximately 40,000 deaths annually in California. Nicotine, a key component of cigarettes and most e-cigarettes, is highly addictive and harmful to the developing brains of children and young adults.

    DOJ’s Tobacco Grant Program aims to reduce childhood addiction to tobacco products by supporting local partners who:

    • Enforce the statewide retail flavor ban and similar local retail flavor ordinances.
    • Prosecute and penalize retailers who sell or market tobacco products to youth under the age of 21, including over the internet.
    • Educate and inform tobacco retailers on state and local tobacco laws.
    • Investigate and inspect for retailer licensing compliance.

    The program is funded by Proposition 56, the California Healthcare, Research and Prevention Tobacco Tax Act of 2016. With this year’s awards, the Tobacco Grant Program has distributed approximately $212 million in grant funding to over 470 grantees through a competitive process.

    Operation Up in Smoke resulted in the seizure of at least 50,000 illegal flavored tobacco products amounting to over $1,000,000 in value. Unstamped cigarettes, counterfeit stamps, non-MSA cigarettes, cannabis, and illegal gambling machines, were also items seized in this operation. The following state and local agencies were involved in this year’s operation: California Department of Justice: Tobacco Unit and Tax Recovery in the Underground Economy (TRUE); California Department of Public Health – Office of Youth Tobacco Enforcement (OYTE); California Department of Tax and Fee Administration – Tax Investigations and Inspections Bureau (CDTFA); Alameda County Sheriff’s Office; Calistoga Police Department; Chula Vista Police Department; Clovis Police Department; Inglewood Police Department; Irvine Police Department; Los Angeles City Attorney’s Office; Long Beach City Prosecutor; Riverside Sheriff’s Department; Sacramento County Sheriff’s Office; Santa Cruz Police Department; County of San Diego Health and Human Services Agency; Shasta County Health and Human Services Agency; Sonoma County Department of Health Service.

    To see the full list of 2024-2025 Tobacco Grant Program recipients and learn more about the grant application process and qualifications, please click here.

    To see further details about this year’s Operation Up in Smoke, please click here.

    MIL OSI USA News –

  • MIL-OSI USA: Governor Shapiro, DCED Secretary Siger to Announce Major Economic Development Investment

    Source: US State of Pennsylvania

    October 24, 2024 – Lancaster County, PA

    ADVISORY – Governor Shapiro, DCED Secretary Siger to Announce Major Economic Development Investment

    Governor Josh Shapiro and Department of Community & Economic Development Secretary Rick Siger will announce a major economic development investment – the largest Commonwealth-supported investment in Lancaster County history.

    WHO:
    Governor Josh Shapiro
    DCED Secretary Rick Siger
    Major Business Leaders

    WHEN:
    Thursday, October 24, 2024 at 1:00 PM
    Press conference will begin at approximately 1:20 PM

    WHERE:
    Please RSVP to receive the address and arrival instructions.

    LIVE STREAM:
    pacast.com/live/gov
    governor.pa.gov/live/

    RSVP:
    Press who are interested in attending must RSVP with the names and phone numbers for each member of their team to ra-gvgovpress@pa.gov.

    MIL OSI USA News –

  • MIL-OSI Security: Little Rock Man Sentenced to Over 17 Years In Federal Prison for Drug Trafficking Methamphetamine and Fentanyl, Felon in Possession of a Firearm, and Possession of a Firearm in Furtherance of a Drug-Trafficking Crime

    Source: Office of United States Attorneys

          LITTLE ROCK—Christopher Monroe, a multi-convicted felon, will spend the next 215 months in federal prison for possession with intent to distribute fentanyl, methamphetamine, felon in possession of a firearm, and possession of a firearm in furtherance of a drug-trafficking crime. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge Brian S. Miller.

          Monroe, 44, of Little Rock, was indicted on June 6, 2023, in a six-count indictment charging possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute cocaine, possession with intent to distribute heroin, possession with intent to distribute fentanyl, being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug-trafficking crime. 

          On April 12, 2024, Monroe pleaded guilty to the fentanyl and methamphetamine crimes, as well as to being a felon in possession of a firearm and possession of a firearm in furtherance of a drug-trafficking crime. Today Judge Miller sentenced Monroe to 155 months in federal prison for the methamphetamine and fentanyl crimes, as well as for being a felon in possession of a firearm, with those offenses to run concurrently. Judge Miller also sentenced Monroe to 60 months in federal prison for possessing the firearm in furtherance of a drug-trafficking crime, to be served consecutively after the 155-month sentence. In addition to the 215 months’ total imprisonment, which is more than 17.5 years, Judge Miller sentenced Monroe to five years supervised release. There is no parole in the federal system.

          An investigation revealed that on May 20, 2023, Arkansas State Troopers observed a GMC Sierra Denali that had previously fled from Sherwood Police and Arkansas State Police in recent weeks and evaded arrest. Troopers pulled up next to the truck and identified the driver as Monroe, the sole occupant of the vehicle. Monroe had confirmed warrants out of Sherwood. Troopers attempted to block the Denali and initiate a traffic stop State Highway 167, but Monroe refused to stop. He collided with patrol cars and fled from troopers, exceeding speeds of 100 m.p.h. and endangering others. Troopers continued to chase Monroe from Sherwood through Little Rock before the pursuit was terminated by immobilizing Monroe’s vehicle at Roosevelt Road. 

          During a search of Monroe’s vehicle, law enforcement officers located 309 grams of methamphetamine; 109 grams of fentanyl; cocaine; marijuana; and oxycodone. Officers also located in a safe a loaded Taurus Judge .45/.410 caliber firearm. Also located in the safe were multiple controlled substances, baggies, scales, and cash. 

          Judge Miller based Monroe’s sentence on the offense as well as his documented criminal history. At the time of the Monroe’s possession of the firearm and drugs, he had been previously convicted of 3rd degree domestic battery, possession of marijuana, possession with intent to distribute methamphetamine and cocaine, theft of property, and theft by receiving, as well as illegal possession of a firearm.

            The investigation was conducted by the Drug Enforcement Administration with assistance from the Arkansas State Police and Sherwood Police Department. The case was prosecuted by Assistant United States Attorney Bart Dickinson.

    # # #

    Additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

    MIL Security OSI –

  • MIL-OSI USA: October Transformer of the Month: Nipa Phojanamongkolkij

    Source: NASA

    Dr. Nipa Phojanamongkolkij does not always do things the traditional way. As a systems engineer (SE) at Langley Research Center working closely with the Aeronautics Research Mission Directorate, Nipa pushes boundaries and draws connections where few others would think to look. When she envisioned a way to use ChatGPT to help SE teams working on the Advanced Air Mobility Mission, she presented her initial idea to her team wondering, “Is this crazy?” Her idea evolved into a successful prototype, which is now used for air traffic management in the Airspace Operations and Safety Program. She has also leveraged natural language programming and NASA’s database of lessons learned to create a bot for flagging potential risks and mitigations in real time. Nipa’s journey in becoming the digital transformer she is today involves her ability to combine engineering principles and business outcomes with creative, human-centered approaches. 
    Nipa received an MS and PhD in industrial and systems engineering from Arizona State University after moving to the United States from Bangkok, Thailand, where she received her BS degree in electronics engineering. She joined NASA 15 years ago after honing her data analysis and process improvement skills in the business sector at Pepsi Corporation. Her previous experience molded her focus on demonstrating benefit and return on investment. In addition to a business-oriented mindset, Nipa credits much of her success at NASA to her abilities as an active listener, which helps her understand customer needs and address paint points.  
    One cross-cutting challenge Nipa noticed within the agency’s approach to SE was the issue of silos, particularly in handling requirements and research data. Many engineers stored information in documents on individual computers or SharePoint folders, making it difficult to share data and draw connections across missions, directorates, and centers. As a systems engineer, Nipa and her team work to pull these disparate elements into a connected digital format using methodology called model-based systems engineering (MBSE). “You can think of it like a gigantic database where you have everything connected—a table of research papers, a table of requirements, and a table of concept of operations documents,” she says.  
    However, using and leveraging this system requires specialized knowledge of the MBSE discipline and modeling language. To centralize system concept, architecture, and requirement data while democratizing access to it, Nipa conceived a way to leverage ChatGPT as an intermediary between the user and database. In fiscal year 2023, she received funding for her idea as a Digital Transformation Prototype Test, “Requirement Discovery Using Embedded Knowledge Graph with ChatGPT.” Nipa and her team developed a web-based dashboard that translates user questions into database queries and turns the database responses back into readable answers for the user. Nipa and her team curated the research used to create the database, reducing the chances of AI hallucination and misinformation. Using ChatGPT as a translator, general users benefitted from the system without needing to know how to formulate graph database queries.  
    Requirement creation through this system was seven times faster than traditional processes and yielded results comparable to those created by subject matter experts. In some cases, the approach even resulted in more creative requirements than human-generated ones. Nipa’s prototype allowed SEs to more efficiently analyze connections between existing requirements, predict new connections, and generate new requirements, streamlining critical processes for her team. The approach could benefit SEs across NASA centers, directorates, and missions and holds exciting potential for other use cases, such as generating candidate requirements and analyzing project risk. According to NASA Digital Engineering Lead Terry Hill, “The future of engineering is understanding how to do it from a data-centric perspective. Enabling the use of new and evolving technologies like artificial intelligence, machine learning, and large language models will aid our engineers to accomplish greater things and augment our workforce.” 
    Nipa and her team were recognized for their innovative work, receiving a Systems Engineering Technical Excellence Award (SETEA) in 2024 under the “Advancement of SE” category. Nipa’s out-of-the-box thinking has also positioned her as a trailblazer amongst her peers. “Nipa was ahead of everyone in terms of understanding what Digital Transformation is,” says Ian Levitt, Concepts Team Manager at Langley Research Center and co-lead on the Requirement Discovery Prototype Test. “She is extremely smart as well as practical, which is a rare combination. She has wonderful insights and helps me see more clearly what I am trying to do.” As a leader in the Digital Transformation community, Nipa recognizes the importance of collaboration, noting that her transformative work would not have been successful without her team. Their trust is what makes her ideas possible, along with Digital Transformation’s willingness to take chances on innovative, cutting-edge ideas. “They’re at the forefront of technology, so they’re receptive to high-risk projects,” she says. “That’s why I enjoy working with the Digital Transformation team.” 
    In turn, Nipa is excited to continue building community and momentum around transformation initiatives. Her team’s work inspired one group at Johnson Space Center to replicate their requirement discovery approach, and she has received multiple inquiries for demos on their prototype. Seeing how her work inspires and impacts others at the agency is one way she measures success. Whether she is connecting data sources or people, Nipa continues to push toward a more unified NASA, exemplifying what it means to be a digital transformer.  

    MIL OSI USA News –

  • MIL-OSI: SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of Sandy Spring Bancorp, Inc. – SASR

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Sandy Spring Bancorp, Inc. (Nasdaq: SASR), relating to a proposed merger with Atlantic Union Bankshares Corp. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 Atlantic Union shares, and cash in lieu of fractional shares.

    Click here for more information https://monteverdelaw.com/case/sandy-spring-bancorp-inc/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network –

  • MIL-OSI: STOCKHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of SecureWorks Corp. – SCWX

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating SecureWorks Corp. (Nasdaq: SCWX), relating to a proposed merger with Sophos Inc. Under the terms of the agreement, all SecureWorks shares will automatically be converted into the right to receive $8.50 in cash.

    Click here for more information https://monteverdelaw.com/case/secureworks-corp/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network –

  • MIL-OSI: ChampionX Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • Revenue of $906.5 million
    • Net income attributable to ChampionX of $72.0 million
    • Adjusted net income of $85.9 million
    • Adjusted EBITDA of $197.5 million
    • Income before income taxes margin of 11.2%
    • Adjusted EBITDA margin of 21.8%
    • Cash from operating activities of $141.3 million and free cash flow of $108.1 million

    THE WOODLANDS, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced third quarter of 2024 results. Revenue was $906.5 million, net income attributable to ChampionX was $72.0 million, and adjusted EBITDA was $197.5 million. Income before income taxes margin was 11.2% and adjusted EBITDA margin was 21.8%. Cash from operating activities was $141.3 million and free cash flow was $108.1 million.

    CEO Commentary

    “The third quarter demonstrated the resiliency of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated robust free cash flow. These results were the direct result of our employees around the world remaining laser-focused on serving our customers well, and I am grateful to them for their dedication to our corporate purpose of improving lives,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

    “During the third quarter of 2024, we generated revenue of $907 million, which decreased 4% year-over-year, as growth in North America, Middle East & Africa, Europe, and Asia Pacific was offset by Latin America, which was impacted by lower sales in Mexico. Revenue from all areas other than Mexico increased 6% year-over-year. Our revenue increased 1% sequentially, with both North America and international revenues increasing slightly versus the second quarter. North America revenues were up 2% sequentially, driven primarily by higher sales volumes in our artificial lift business. International revenues were up 1% sequentially, driven, in part, by the contribution of RMSpumptools, which was acquired during the quarter. We generated net income attributable to ChampionX of $72 million, income before income taxes margin of 11.2%, and we delivered adjusted EBITDA of $198 million, representing a 21.8% adjusted EBITDA margin, our highest level as ChampionX, which speaks to the productivity and profitability focus of our team.

    “Cash flow from operating activities was $141 million during the third quarter, which represented 196% of net income attributable to ChampionX, and we generated strong free cash flow of $108 million, which represented 55% of our adjusted EBITDA for the period. We remain confident in achieving at least 50% adjusted EBITDA to free cash flow conversion for 2024. Our balance sheet and financial position remain strong, ending the third quarter with approximately $1.1 billion of liquidity, including $389 million of cash and $671 million of available capacity on our revolving credit facility.”

    Agreement to be Acquired by SLB

    On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions. It is currently anticipated that the closing of the transaction will occur in the first quarter of 2025.

    ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its third quarter 2024 results.

    Production Chemical Technologies

    Production Chemical Technologies revenue in the third quarter of 2024 was $559.5 million, a decrease of $10.0 million, or 2%, sequentially, due primarily to lower international sales volumes.

    Segment operating profit was $87.3 million and adjusted segment EBITDA was $120.6 million. Segment operating profit margin was 15.6%, an increase of 60 basis points, sequentially, and adjusted segment EBITDA margin was 21.6%, an increase of 94 basis points, sequentially. The sequential increase in segment operating profit margin and adjusted segment EBITDA margin was driven by strong cost management, productivity improvements, and favorable product mix.

    Production & Automation Technologies

    Production & Automation Technologies revenue in the third quarter of 2024 was $275.7 million, an increase of $31.2 million, or 13%, sequentially, due primarily to higher artificial lift systems demand in North America, and the acquisition of RMSpumptools, which was completed during the quarter. Revenue from digital products was $57.9 million in the third quarter of 2024, an increase of 7% sequentially, driven by increased customer activity in North America.

    Segment operating profit was $34.1 million and adjusted segment EBITDA was $69.6 million. Segment operating profit margin was 12.4%, an increase of 330 basis points, sequentially, and adjusted segment EBITDA margin was 25.2%, an increase of 118 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes, productivity improvements, and favorable product mix.

    Drilling Technologies

    Drilling Technologies revenue in the third quarter of 2024 was $51.8 million, a decrease of $1.1 million, or 2%, sequentially, driven by lower sales volumes in the bearings product line associated with customers managing inventory levels.

    Segment operating profit was $11.5 million and adjusted segment EBITDA was $12.9 million. Segment operating profit margin was 22.2%, compared to 22.4% in the prior quarter, and adjusted segment EBITDA margin was 24.8%, a decrease of 2 basis points, sequentially, due primarily to lower volumes.

    Reservoir Chemical Technologies

    Reservoir Chemical Technologies revenue in the third quarter 2024 was $20.5 million, a decrease of $6.6 million, or 24%, sequentially, driven by lower sales volumes in the U.S. and internationally.

    Segment operating profit was $1.7 million and adjusted segment EBITDA was $3.3 million. Segment operating profit margin was 8.2%, a decrease of 793 basis points, sequentially, and adjusted segment EBITDA margin was 16.0%, a decrease of 592 basis points, sequentially. The decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower volumes.

    Other Business Highlights

    • ChampionX won the Gulf Energy Information Excellence Award for best coating / corrosion advancement technology for its AnX coiled rod product line. The company was a finalist in four additional categories: SMARTEN™ XE ESP control system in the best controls, instrumentation, automation technology category; Pump Checker™ gas lift analysis module in the best digital transformation – upstream category; Chemical Technologies Decarbonization Program in the best HSE contribution category; and the ChampionX Diversity, Equality, and Inclusion programs in the DE&I in energy category.

    Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

    • In the Asia Pacific region, ChampionX secured a significant new contract to provide both engineering services and the initial chemical supply for a new Floating Production Storage and Offloading (FPSO) unit, set to be deployed at a large gas condensate field in Australasia. Operations are scheduled to begin in the first half of 2025 and contribute significantly to regional Liquified Natural Gas (LNG) production capacity. This strategic win further strengthens our presence in the region and reinforces our commitment to delivering innovative, high-quality solutions to our upstream customers.
    • ChampionX was awarded a large first-fill contract to supply multiple production chemicals for corrosion inhibitors, scale inhibitors, and biocides for a major onshore oil and gas incremental project in Saudi Arabia.
    • ChampionX has secured a first-fill contract to supply production chemicals for a significant gas development program in Qatar.
    • ChampionX secured a multi-million-dollar order for a novel application of UltraFab in Carbon Capture, Utilization, and Storage (CCUS) for delivery in 2025.
    • ChampionX recently completed the pre-commission cleaning, chemical treatment, and readiness work for the 303-mile natural gas Mountain Valley Pipeline connecting Marcellus and Utica shale production to markets in the Mid- and South-Atlantic regions.
    • In the Canadian oil sands, ChampionX completed a steam additive first-fill program for a major technology development trial, leading to additional market interest.
    • ChampionX was awarded a three-year contract extension from a major producer in the San Juan Basin in California, recognizing our service, people, and commitment to helping the producer achieve their strategic goals as reasons for the extension.
    • As part of an initiative to expand our technology into adjacent markets, ChampionX Reservoir Chemical Technologies was awarded business with a premier supplier of local sand used for hydraulic fracturing in the Permian Basin. Our solution affords the supplier a significant savings on sand drying costs and is designed to increase operational throughput.

    Other Business Highlights: Production & Automation Technologies

    • In the third quarter, ChampionX completed the acquisition of RMSpumptools, a provider of advanced mechanical and electrical solutions for complex ESP systems. The acquisition expands ChampionX’s international footprint while providing greater opportunities for RMSpumptools in North America. Soon after the acquisition close, our Permian ESP team collaborated with RMSpumptools to deliver a sand control solution to a major oil company operating in the Permian basin.
    • ChampionX Artificial Lift expanded its Latin America footprint into Ecuador with a contract award for two 400HP multiplex surface pump systems for jet lift applications. This accomplishment is the result of a strengthening partnership with a Latin America independent operator that is expanding its operations from Colombia to Ecuador. Unlike typical systems, the surface pump and oil vessel required for jet lifted wells will be built on one skid with all the necessary piping, which reduces assembly time at the wellsite.
    • Building on the combined strengths of our XSPOC artificial lift software and the acquisition of Artificial Lift Performance Limited Pump Checker software, ChampionX introduced ALLY™ production optimization digital solutions, debuting a modern interface with user-friendly dashboards and intuitive workflows, paired with powerful performance—ingesting, processing, and displaying more data than ever before. It is a one-stop-shop for production teams to manage and optimize their producing assets, regardless of lift type or equipment provider. Building on the launch of this new digital solution, in the third quarter ChampionX secured seven new clients for our production optimization software solution.
    • ChampionX launched the PCS Ferguson new generation SMARTEN™ Unify control system, which is engineered to deliver sophisticated digital automation and optimization capabilities at a cost of ownership that fits within the narrow economic profile of plunger lifted wells. SMARTEN Unify provides enhanced visibility to what is happening “live” at any second in a plunger lift system, eliminating the need for operating based on calculated guesses.

    Other Business Highlights: Drilling Technologies

    • Drilling Technologies’ diamond bearings products continue to see positive test results in additional downhole drilling and completion tools applications.
    • Drilling Technologies’ diamond inserts business had significant new products launches with four major customers.

    About Non-GAAP Measures

    In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

    About ChampionX

    ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com. 

    Forward-Looking Statements

    This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on January 24, 2024 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 6, 2024, and each of their respective, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

    These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s subsequent Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

    Investor Contact: Byron Pope
    byron.pope@championx.com 
    281-602-0094

    Media Contact: John Breed
    john.breed@championx.com 
    281-403-5751

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)

      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    (in thousands, except per share amounts)   2024       2024       2023       2024       2023  
    Revenue $ 906,533     $ 893,272     $ 939,783     $ 2,721,946     $ 2,814,730  
    Cost of goods and services   608,764       613,426       647,923       1,845,127       1,957,309  
    Gross profit   297,769       279,846       291,860       876,819       857,421  
    Costs and expenses:                  
    Selling, general and administrative expense   180,501       182,995       162,317       535,910       485,617  
    (Gain) loss on sale-leaseback transaction and disposal group   57       —       —       (29,826 )     12,965  
    Interest expense, net   14,137       15,421       13,744       43,493       40,754  
    Foreign currency transaction (gains) losses, net   3,505       (2,767 )     7,992       793       21,683  
    Other expense (income), net   (2,176 )     938       (1,994 )     1,689       (13,494 )
    Income before income taxes   101,745       83,259       109,801       324,760       309,896  
    Provision for income taxes   28,078       27,868       29,009       82,542       69,334  
    Net income   73,667       55,391       80,792       242,218       240,562  
    Net income attributable to noncontrolling interest   1,659       2,822       3,081       4,718       3,522  
    Net income attributable to ChampionX $ 72,008     $ 52,569     $ 77,711     $ 237,500     $ 237,040  
                       
    Earnings per share attributable to ChampionX:                  
    Basic $ 0.38     $ 0.28     $ 0.40     $ 1.25     $ 1.20  
    Diluted $ 0.37     $ 0.27     $ 0.39     $ 1.23     $ 1.18  
                       
    Weighted-average shares outstanding:                  
    Basic   190,496       190,426       195,881       190,575       197,058  
    Diluted   193,362       193,257       199,592       193,655       201,025  
                                           

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (in thousands) September 30, 2024   December 31, 2023
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $ 389,109     $ 288,557  
    Receivables, net   434,107       534,534  
    Inventories, net   546,817       521,549  
    Prepaid expenses and other current assets   68,218       80,777  
    Total current assets   1,438,251       1,425,417  
           
    Property, plant and equipment, net   760,775       773,552  
    Goodwill   729,783       669,064  
    Intangible assets, net   270,361       243,553  
    Other non-current assets   178,490       130,116  
    Total assets $ 3,377,660     $ 3,241,702  
           
    LIABILITIES AND EQUITY      
    Current Liabilities:      
    Current portion of long-term debt $ 6,203     $ 6,203  
    Accounts payable   455,485       451,680  
    Other current liabilities   278,498       324,866  
    Total current liabilities   740,186       782,749  
           
    Long-term debt   592,161       594,283  
    Other long-term liabilities   246,296       203,639  
    Stockholders’ equity:      
    ChampionX stockholders’ equity   1,814,310       1,676,622  
    Noncontrolling interest   (15,293 )     (15,591 )
    Total liabilities and equity $ 3,377,660     $ 3,241,702  
                   

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)

      Nine Months Ended September 30,
    (in thousands)   2024       2023  
    Cash flows from operating activities:      
    Net income $ 242,218     $ 240,562  
    Depreciation and amortization   183,291       177,226  
    (Gain) loss on sale-leaseback transaction and disposal group   (29,826 )     12,965  
    Loss on Argentina Blue Chip Swap transaction   7,086       —  
    Deferred income taxes   (16,810 )     (15,380 )
    Loss (gain) on disposal of fixed assets   868       (1,480 )
    Receivables   115,269       85,181  
    Inventories   (40,118 )     (50,011 )
    Accounts payable   (30,577 )     (7,018 )
    Other assets   6,665       17,470  
    Leased assets   (24,193 )     (38,597 )
    Other operating items, net   (31,442 )     (49,600 )
    Net cash flows provided by operating activities   382,431       371,318  
           
    Cash flows from investing activities:      
    Capital expenditures   (101,403 )     (110,965 )
    Proceeds from sale of fixed assets   9,323       12,328  
    Proceeds from sale-leaseback transaction   44,292       —  
    Purchase of investments   (31,526 )     —  
    Sale of investments   24,358       —  
    Acquisitions, net of cash acquired   (123,269 )     —  
    Net cash used for investing activities   (178,225 )     (98,637 )
           
    Cash flows from financing activities:      
    Proceeds from long-term debt   —       15,500  
    Repayment of long-term debt   (4,652 )     (43,625 )
    Repurchases of common stock   (49,399 )     (159,730 )
    Dividends paid   (52,430 )     (48,309 )
    Other   3,854       (384 )
    Net cash used for financing activities   (102,627 )     (236,548 )
           
    Effect of exchange rate changes on cash and cash equivalents   (1,027 )     (1,314 )
           
    Net increase in cash and cash equivalents   100,552       34,819  
    Cash and cash equivalents at beginning of period   288,557       250,187  
    Cash and cash equivalents at end of period $ 389,109     $ 285,006  
                   

    CHAMPIONX CORPORATION
    BUSINESS SEGMENT DATA
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Segment revenue:          
    Production Chemical Technologies $ 559,539     $ 569,577     $ 604,254  
    Production & Automation Technologies   275,700       244,487       256,148  
    Drilling Technologies   51,792       52,888       54,869  
    Reservoir Chemical Technologies   20,531       27,123       25,093  
    Corporate and other   (1,029 )     (803 )     (581 )
    Total revenue $ 906,533     $ 893,272     $ 939,783  
               
    Income before income taxes:        
    Segment operating profit (loss):          
    Production Chemical Technologies $ 87,260     $ 85,388     $ 94,560  
    Production & Automation Technologies   34,136       22,207       28,299  
    Drilling Technologies   11,501       11,863       12,255  
    Reservoir Chemical Technologies   1,675       4,363       2,461  
    Total segment operating profit   134,572       123,821       137,575  
    Corporate and other   18,690       25,141       14,030  
    Interest expense, net   14,137       15,421       13,744  
    Income before income taxes $ 101,745     $ 83,259     $ 109,801  
               
    Operating profit margin / income before income taxes margin:          
    Production Chemical Technologies   15.6 %     15.0 %     15.6 %
    Production & Automation Technologies   12.4 %     9.1 %     11.0 %
    Drilling Technologies   22.2 %     22.4 %     22.3 %
    Reservoir Chemical Technologies   8.2 %     16.1 %     9.8 %
    ChampionX Consolidated   11.2 %     9.3 %     11.7 %
               
    Adjusted EBITDA          
    Production Chemical Technologies $ 120,622     $ 117,421     $ 133,101  
    Production & Automation Technologies   69,604       58,848       59,288  
    Drilling Technologies   12,867       13,149       13,786  
    Reservoir Chemical Technologies   3,292       5,954       4,198  
    Corporate and other   (8,873 )     (12,139 )     (12,837 )
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  
               
    Adjusted EBITDA margin          
    Production Chemical Technologies   21.6 %     20.6 %     22.0 %
    Production & Automation Technologies   25.2 %     24.1 %     23.1 %
    Drilling Technologies   24.8 %     24.9 %     25.1 %
    Reservoir Chemical Technologies   16.0 %     22.0 %     16.7 %
    ChampionX Consolidated   21.8 %     20.5 %     21.0 %
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Net income attributable to ChampionX $ 72,008     $ 52,569     $ 77,711  
    Pre-tax adjustments:          
    (Gain) loss on sale leaseback transaction and disposal group(1)   57       —       —  
    Russia sanctions compliance and impacts(2)   109       32       95  
    Restructuring and other related charges   5,317       7,927       1,228  
    Merger transaction costs(3)   8,312       15,059       —  
    Acquisition costs and related adjustments(4)   753       574       —  
    Intellectual property defense   69       531       220  
    Merger-related indemnification responsibility   —       —       722  
    Tulsa, Oklahoma storm damage   —       —       1,895  
    Foreign currency transaction (gains) losses, net   3,505       (2,767 )     7,992  
    Loss on Argentina Blue Chip Swap transaction   —       2,994       —  
    Tax impact of adjustments   (4,259 )     (5,722 )     (2,702 )
    Adjusted net income attributable to ChampionX   85,871       71,197       87,161  
    Tax impact of adjustments   4,259       5,722       2,702  
    Net income attributable to noncontrolling interest   1,659       2,822       3,081  
    Depreciation and amortization   63,508       60,203       61,839  
    Provision for income taxes   28,078       27,868       29,009  
    Interest expense, net   14,137       15,421       13,744  
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  

    _______________________

    (1) Amount represents the gain on the sale and leaseback of certain buildings and land.
    (2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.
    (3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.
    (4) Includes costs incurred for the acquisition of businesses.
       
      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Diluted earnings per share attributable to ChampionX $ 0.37     $ 0.27     $ 0.39  
    Per share adjustments:          
    (Gain) loss on sale leaseback transaction and disposal group   —       —       —  
    Russia sanctions compliance and impacts   —       —       —  
    Restructuring and other related charges   0.03       0.04       0.01  
    Merger transaction costs   0.04       0.08       —  
    Acquisition costs and related adjustments   —       —       —  
    Intellectual property defense   —       —       —  
    Merger-related indemnification responsibility   —       —       0.01  
    Tulsa, Oklahoma storm damage   —       —       0.01  
    Foreign currency transaction (gains) losses, net   0.02       (0.01 )     0.04  
    Loss on Argentina Blue Chip Swap transaction   —       0.02       —  
    Tax impact of adjustments   (0.02 )     (0.03 )     (0.02 )
    Adjusted diluted earnings per share attributable to ChampionX $ 0.44     $ 0.37     $ 0.44  
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Production Chemical Technologies          
    Segment operating profit $ 87,260     $ 85,388     $ 94,560  
    Non-GAAP adjustments   7,073       5,851       9,079  
    Depreciation and amortization   26,289       26,182       29,462  
    Segment adjusted EBITDA $ 120,622     $ 117,421     $ 133,101  
               
    Production & Automation Technologies          
    Segment operating profit $ 34,136     $ 22,207     $ 28,299  
    Non-GAAP adjustments   1,656       6,000       2,089  
    Depreciation and amortization   33,812       30,641       28,900  
    Segment adjusted EBITDA $ 69,604     $ 58,848     $ 59,288  
               
    Drilling Technologies          
    Segment operating profit $ 11,501     $ 11,863     $ 12,255  
    Non-GAAP adjustments   54       —       (8 )
    Depreciation and amortization   1,312       1,286       1,539  
    Segment adjusted EBITDA $ 12,867     $ 13,149     $ 13,786  
               
    Reservoir Chemical Technologies          
    Segment operating profit $ 1,675     $ 4,363     $ 2,461  
    Non-GAAP adjustments   3       11       72  
    Depreciation and amortization   1,614       1,580       1,665  
    Segment adjusted EBITDA $ 3,292     $ 5,954     $ 4,198  
               
    Corporate and other          
    Segment operating profit $ (32,827 )   $ (40,562 )   $ (27,774 )
    Non-GAAP adjustments   9,336       12,488       920  
    Depreciation and amortization   481       514       273  
    Interest expense, net   14,137       15,421       13,744  
    Segment adjusted EBITDA $ (8,873 )   $ (12,139 )   $ (12,837 )
                           

    Free Cash Flow

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Free Cash Flow          
    Cash flows from operating activities $ 141,298     $ 67,625     $ 163,030  
    Less: Capital expenditures, net of proceeds from sale of fixed assets   (33,248 )     (29,310 )     (48,469 )
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
               
    Cash From Operating Activities to Revenue Ratio          
    Cash flows from operating activities $ 141,298     $ 67,625     $ 163,030  
    Revenue $ 906,533     $ 893,272     $ 939,783  
               
    Cash from operating activities to revenue ratio   16 %     8 %     17 %
               
    Free Cash Flow to Revenue Ratio          
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
    Revenue $ 906,533     $ 893,272     $ 939,783  
               
    Free cash flow to revenue ratio   12 %     4 %     12 %
               
    Free Cash Flow to Adjusted EBITDA Ratio          
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  
               
    Free cash flow to adjusted EBITDA ratio   55 %     21 %     58 %

    The MIL Network –

  • MIL-OSI USA: Tillis Urges Congress to Quickly Pass a Disaster Recovery Package

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis
    WASHINGTON, D.C. – Today, The Hill published an op-ed by Senator Thom Tillis on the importance for elected officials in Congress to step up and be proactive with long-term disaster recovery assistance. 
    Read the full op-ed HERE.
    Tillis on North Carolina’s recovery from Helene:
    “The recovery process will be long and difficult and will require years and billions of dollars of assistance. That is why it is so important for elected officials in Congress to step up and be proactive — not reactive — with long-term disaster recovery assistance. This is why I have led a bipartisan group of senators in disaster-hit states calling on Congress to end its seven-week recess and come back to Washington to pass a disaster funding package that initiates the long-term recovery process for victims and communities ravaged by Helene and Milton.” 
    Tillis on the need to replenish the SBA Disaster Loan Fund and FEMA Disaster Relief Fund:
    “The most pressing need is to replenish the Small Business Administration’s disaster loan fund, which has already run out of money. Few Helene victims have flood insurance, so the SBA’s various disaster recovery programs are key to long-term recovery. By utilizing these programs, victims can access low-interest loans to replace lost property or repair or rebuild their homes or small businesses. The loans can also be used to provide a financial cushion for small businesses that face an economic loss in the months ahead due to the storm. Now that funding for the SBA disaster loan program has run out, it risks delays in processing storm victims’ loans and their ability to get their lives back together. We cannot let this continue to go on. 
    “FEMA is also in danger of running out of money in its Disaster Relief Fund. The hurricane season isn’t over until November and the National Hurricane Center is already monitoring tropical disturbances that could turn into more full-blown storms. It may only get worse.” 
    Tillis on the broken disaster response and recovery process:
    “The fact is, the federal disaster response and recovery process is broken and many Americans understandably have concerns. First, there are questions about prioritization. It was telling that in a 24-hour period in the wake of Helene, the Biden-Harris administration bragged about sending $100 million in transportation funding to rebuild roads in Western North Carolina as it also pledged $157 million in assistance to Lebanon. That is reflective of an administration that can’t read a room and doesn’t have its priorities in order. Wrong message, wrong time. Additionally, there has been a big political dust-up over FEMA money being used for illegal immigrants. This confusion could have been avoided if FEMA had been laser-focused on its mission to respond to natural disasters. FEMA should never have become a funding conduit for responding to the Biden-Harris administration’s border security crisis.
    “Secondly, and most important, is the question about competency. The federal government is already too slow and bureaucratic, but the disaster recovery process takes it to another level. The long-term funding for recovery is, shockingly, neither permanent nor predictable and requires constant reauthorization from Congress. I have worked across the aisle to introduce legislation that would help fix this problem by establishing a permanent and predictable funding process for long-term recovery and getting assistance to families and business owners sooner. 
    “There also needs to be a drastic improvement in how FEMA assists victims who suffer property damage. I recently introduced a bipartisan bill to end the ‘one-size-fits-all’ approach to disaster relief and cut the red tape that prevents many individuals and communities from accessing the relief they desperately need when they need it.” 

    MIL OSI USA News –

  • MIL-OSI USA: Duckworth, Durbin, Quigley, Sorensen Announce $33.5 Million in Federal Funding for Peoria and Chicago Airports

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth
    October 23, 2024
    [CHICAGO, IL] –  U.S. Senator Tammy Duckworth (D-IL), U.S. Senate Majority Whip Dick Durbin (D-IL), U.S. Representatives Mike Quigley (D-IL-05) and Eric Sorensen (D-IL-17) today announced $33,510,000 in federal funding from the Department of Transportation’s Airport Terminal Program. 
    With today’s announced funding, General Wayne A. Downing Peoria International Airport will receive $13,510,000 for the replacement of their air traffic control tower, and Chicago O’Hare International Airport will receive $20,000,000 for an expansion to Terminal 5.
    “Illinois’s airports are critical economic engines for our state,” Duckworth said. “This funding will help improve and modernize O’Hare and Downing International Airports and, after years of neglecting our nation’s infrastructure, I’m proud every day to see the Bipartisan Infrastructure Law at work rebuilding infrastructure all across our country. I will continue to work alongside Senator Durbin and the Illinois delegation to make traveling safer and more reliable for all passengers while ensuring that our communities are receiving the much-needed federal resources they deserve.”
    “By improving and modernizing airport infrastructure, we are laying the foundation for increased connectivity and reliability,” said Durbin. “Today’s announced federal funding for upgrading our airports across Illinois will enhance the travel experience for passengers and promote economic growth. I will continue working with Senator Duckworth and our Congressional colleagues to ensure Illinois airports have the necessary federal resources to keep passengers safe and connected.”
    “This important funding coming to Peoria International Airport is about connecting my neighbors in Central Illinois to the world. The new air traffic control tower will allow controllers to see the end points of both runways and all taxiways, making it safer for travelers and airport staff. I am grateful to Senators Durbin and Duckworth for their support of this project as we continue our work to keep air travel safe and open Peoria to new destinations,” said Sorensen.
    “Throughout my career, I have worked tirelessly to ensure that travelers receive the best and most efficient service possible at O’Hare. Today’s funding announcement will build on the progress we have already made. This expansion will benefit not only our constituents but also travelers across the country, while boosting our economy. When I voted for the Bipartisan Infrastructure Law, I did so knowing it would bring vital investments like these and create lasting benefits across our state. Together, we are paving the way for a brighter future and a stronger transportation network for everyone,” said Quigley.
    Duckworth and Durbin previously worked to secure a provision in the Bipartisan Infrastructure Law (BIL) to make Peoria’s airport-owned air traffic control tower (ATCT) eligible for federal funding. Following the enactment of the Bipartisan Infrastructure Law, the ATCT has received $29 million in federal funding across two previous grants.
    Duckworth and Durbin helped secure two previous BIL Airport Terminal Program grants for Chicago O’Hare International Airport for the Terminal 3 Project totaling $90 million, a 2023 grant of $50 million and a 2024 grant of $40 million.
    -30-

    MIL OSI USA News –

  • MIL-OSI USA: Duckworth, Durbin Join Congressional Democrats in Filing Amicus Brief Urging Ninth Circuit Court to Affirm that EMTALA Requires Hospitals to Provide Emergency Stabilizing Care, Including Abortion Care, Preempting Idaho’s Dacronian Abortion Ban

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth
    October 22, 2024
    After the Supreme Court dismissed the case, returning it to the Ninth Circuit Court, 259 Members of Congress ask the Ninth Circuit to affirm district court decision that under EMTALA, hospitals participating in Medicare must provide emergency stabilizing treatment to patients, including abortion care when necessary
    [WASHINGTON, D.C.] – Today, U.S. Senator Tammy Duckworth (D-IL) and U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, joined more than 250 Members of Congress in submitting an amicus brief to the U.S. Court of Appeals for the Ninth Circuit in Moyle v. United States and Idaho v. United States, two consolidated cases concerning the Emergency Medical Treatment and Labor Act (EMTALA) under consideration by the en banc Ninth Circuit.  EMTALA is a federal law that requires hospitals that receive Medicare funding to provide necessary “stabilizing treatment” to patients experiencing medical emergencies, which can include abortion care.
    After the Dobbs decision in 2022, a draconian anti-abortion law in Idaho went into effect that makes it a felony for a doctor to terminate a patient’s pregnancy unless it is “necessary” to prevent the patient’s death.  The United States sued the State of Idaho, arguing that the state’s law is preempted by EMTALA in those circumstances in which abortion may not be necessary to prevent imminent death, but still constitutes the necessary stabilizing treatment for a patient’s emergency medical condition.  The district court agreed; it held that in those limited, but critically important situations, EMTALA requires Medicare-participating hospitals to provide abortion as an emergency medical treatment.  Idaho Republicans appealed that ruling to the Supreme Court, which lifted the injunction and took the case in January.  In March, 258 Members filed an amicus brief, asking the Supreme Court to affirm the district court decision.  In June, the Supreme Court dismissed the case but without a ruling on the merits, sending the case back to the Ninth Circuit Court and reinstating the district court’s injunction.
    In their brief in support of the Justice Department, the lawmakers ask the Ninth Circuit to uphold the district court’s ruling.  They argue that the congressional intent, text and history of EMTALA make clear that covered hospitals must provide abortion care when it is the necessary stabilizing treatment for a patient’s emergency medical condition and that EMTALA preempts Idaho’s abortion ban in emergency situations that present a serious threat to a patient’s health.
    “[T]he 99th Congress passed EMTALA to ensure that every person who visits a Medicare-funded hospital with an ‘emergency medical condition’ is offered stabilizing treatment,” the Members write in their amicus brief.  “Congress chose broad language for that mandate, requiring hospitals that participate in the Medicare program to provide ‘such treatment as may be required to stabilize the medical condition.’… That text—untouched by Congress for the past three decades—makes clear that in situations in which a doctor determines that abortion constitutes the ‘[n]ecessary stabilizing treatment’ for a pregnant patient, federal law requires the hospital to offer it.  Yet Idaho has made providing that care a felony, in direct contravention of EMTALA’s mandate.”
    Importantly, the Members note that in this case, “respecting the supremacy of federal law is about more than just protecting our system of government; it is about protecting people’s lives.  If this Court allows Idaho’s near-total abortion ban to supersede federal law, pregnant patients in Idaho will continue to be denied appropriate medical treatment, placing them at heightened risk for medical complications and severe adverse health outcomes… And health care providers, unwilling to let Idaho’s law override their medical judgment regarding their patients’ best interests, will continue their exile from Idaho, creating maternity-care ‘deserts’ all over the state.”  The Members point to numerous reports of OB/GYNs leaving Idaho en masse since the state’s abortion ban went into effect.  Idaho has since lost 55 percent of its maternal-fetal medicine specialists and three rural hospitals have shut down maternity services altogether.
    “These are not hypothetical scenarios.  Because Idaho’s abortion ban contains no clear exceptions for the ‘emergency medical conditions’ covered by EMTALA, it forces physicians to wait until their patients are on the verge of death before providing abortion care. The result in other states with similar laws has been ‘significant maternal morbidity,’” write the Members, pointing to harrowing reports of pregnant women with severe health complications being denied necessary abortion care, including an Idaho woman who was flown to Utah for an abortion while hemorrhaging, leaking amniotic fluid and terrified that she would not survive to care for her two other children.  “Federal law does not allow Idaho to endanger the lives of its residents in this way.”
    In their brief, the Members also clarify that the references to “unborn child” in EMTALA were intended to expand hospitals’ obligations with respect to providing stabilizing treatment—not contract them or take away the obligation to provide abortion care in certain circumstances.
    The Members’ brief also counters an argument from Idaho and its amici that the Supremacy Clause does not apply in this case because EMTALA was passed using Spending Clause authority, and therefore acts only as a condition on Medicare funding.  The Members make clear that all laws passed by Congress are entitled to preemption—regardless of their source of constitutional authority and states cannot pass laws that make it impossible for private parties to accept federal funding, inhibiting the purpose of the federal law. 
    “EMTALA requires abortion when necessary to stabilize a patient with an emergency medical condition, Idaho’s near-total abortion ban is preempted to the extent that it prevents doctors from providing that care,” the Members write. “This Court should reject Appellants’ novel theory that EMTALA is not entitled to preemptive effect because it was enacted pursuant to Congress’s spending power.  Under the Supremacy Clause, all ‘the constitutional laws enacted by congress,’ constitute ‘the supreme Law of the Land,’. As the Supreme Court has repeatedly held, the principle of federal supremacy applies to laws passed pursuant to Congress’s spending authority no less than it does to laws effectuating other enumerated powers.”
    “In sum, EMTALA plainly requires hospitals that participate in the Medicare program to provide abortion care when, in a doctor’s medical judgment, it constitutes the ‘[n]ecessary stabilizing treatment’ for a patient’s ‘emergency medical condition.’”
    The lawmakers conclude by asking the Ninth Circuit to affirm the district court’s decision that EMTALA requires Medicare-participating hospitals to provide abortion care when it is necessary as emergency medical treatment.
    In the Senate, the amicus brief was signed by 48 U.S. Senators, including Duckworth and Durbin.  Also signing the amicus brief were U.S. Senators Chuck Schumer (D-NY), Patty Murray (D-WA), Ron Wyden (D-OR), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Sherrod Brown (D-OH), Laphonza Butler (D-CA), Maria Cantwell (D-WA), Ben Cardin (D-MD), Tom Carper (D-DE), Bob Casey Jr. (D-NJ), Chris Coons (D-DE), Catherine Cortez Masto (D-NV), Kirsten Gillibrand (D-NY), Maggie Hassan (D-NH), Martin Heinrich (D-NM), George Helmy (D-NJ), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Tim Kaine (D-VA), Mark Kelly (D-AZ), Angus King Jr. (D-ME), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM), Ed Markey (D-MA), Jeff Merkley (D-OR), Chris Murphy (D-CT), Alex Padilla (D-CA), Gary Peters (D-MI), Jack Reed (D-RI), Jacky Rosen (D-NV), Bernie Sanders (I-VT), Brian Schatz (D-HI), Jeanne Shaheen (D-NH), Kyrsten Sinema (I-AZ), Tina Smith (D-MN), Debbie Stabenow (D-MI), Jon Tester (D-MT), Chris Van Hollen (D-MD), Mark Warner (D-VA), Raphael Warnock (D-GA), Elizabeth Warren (D-MA), Peter Welch (D-VT), Sheldon Whitehouse (D-RI).
    In the House, the brief was signed by 211 U.S. Representatives.
    The lawmakers’ amicus brief to the Supreme Court can be read in full HERE.
    -30-

    MIL OSI USA News –

  • MIL-OSI USA: Garamendi Honors 42 Women at Annual Women of the Year Awards

    Source: United States House of Representatives – Congressman John Garamendi – Representing California’s 3rd Congressional District

    BENICIA, CA – Today, at his 11th annual Women of the Year event, Congressman John Garamendi (D-CA) honored 42 women from the 8th Congressional District of California who are leaders and visionaries in their communities. These honorees have all made significant contributions to society through public service, business, education, and the local economy.

    “Every year, I have the privilege of celebrating the remarkable achievements and contributions of outstanding women in California’s 8th District,” Garamendi said. “These leaders come from diverse backgrounds, and each has had a profound impact on their communities and those around them. It is a privilege to honor their efforts.”

    “Their commitment and passion for service merit this recognition, and through this award, their contributions will be preserved and documented in the official Congressional Record in Washington, D.C.,” Garamendi said.

    You can view photos and biographies of this year’s honorees here.

    A legislative update that was shared at the event is available here.

    A video of the event can be found here.

    The list of 2024 Women of the Year Honorees is included below:

    Contra Costa County:

    Angel Greer (Pittsburg)

    Barbara Akoro (Bay Point)

    Bisa French (Richmond)

    Blanca Hernandez (Crockett)

    Carole Paterson (Fairfield)

    Claryssa Wilson (Antioch)

    Dr. Myra Altman  (Kensington)

    Genoveva Garcia Calloway (San Pablo)

    Harpreet Sidhu (Hercules)

    LaShonda White (Richmond)

    Linda Whitmore (Richmond)

    Lori Ogorchock (Antioch)

    Maria Theresa Viramontes (Richmond)

    Maureen Toms (Pinole)

    Myrtle Braxton (Richmond)

    Patricia Durham (El Cerrito)

    Ruthie Abelson Olivas (Pinole)

    Tamara Shiloh (Richmond)

     

    Solano County:

    Brigette Hunley (Fairfield)

    Caroline Villarreal (Fairfield)

    Captain Rachel Marron (Travis Air Force Base)

    Chief Master Sergeant Sandrine Hanley (Travis Air Force Base)

    Chief Master Sargeant Laura Hoover (Travis Air Force Base)

    Colonel Lisa Palmer (Travis Air Force Base)

    Daria Bautista (Travis Air Force Base)

    Dinah Villanueva-Ryan (Vallejo)

    Dr. Bonnie Hamilton (Fairfield)

    Dr. Diane Dooley (Benicia)

    Dr. Tiffáni Thomas (Suisun City)

    Dr. Rozzana Verder-Aliga (Vallejo)

    Guillermina Loera-Diaz (Vallejo)

    Gregoria Torres (Vallejo)

    Kathy Kerridge (Benicia)

    Keycha Gallon (Vallejo)

    Kristina Kauzinger (Vacaville)

    Lieutenant Colonel Christie Taylor (Travis Air Force Base)

    Major Ava T. Margerison (Travis Air Force Base)

    Sigrid J. Perkins (Travis Air Force Base)

    Simone Lane (Vallejo)

    Sriha Srinivasen (Fairfield)

    Tonya Robinson (Suisun City)

    Viola Robertson (Vallejo)

     

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Pallone Leads Northeast Corridor Tour with Amtrak, NJ Transit, and Federal Officials to Address Ongoing Service Issues

    Source: United States House of Representatives – Congressman Frank Pallone (6th District of New Jersey)

    New Brunswick, NJ – Today, Congressman Frank Pallone (NJ-06) led a tour of the Northeast Corridor (NEC) with key leaders from Amtrak, NJ Transit, and the U.S. Department of Transportation’s Federal Railroad Administration (FRA). Pallone organized the tour to directly address the significant disruptions and delays that have plagued New Jersey commuters throughout the summer. Amtrak CEO Stephen Gardner, NJ Transit President Kevin Corbett, FRA officials, and members of New Jersey’s congressional delegation joined Pallone to assess the status of long-overdue infrastructure improvements, many of them funded through the historic Bipartisan Infrastructure Law.

    “For months, New Jersey commuters have been dealing with unbearable delays and service disruptions on the Northeast Corridor. I’ve been pushing for better service because our residents deserve reliable and efficient transportation. Today’s tour gave us a firsthand look at the status of critical projects that will reduce disruptions and modernize our rail system. I will continue to hold Amtrak and NJ Transit accountable until these long-overdue improvements are fully realized. New Jersey commuters deserve nothing less,” said Pallone.

    The tour began at Moynihan Train Hall in New York City and included stops in Newark and New Brunswick. Key projects showcased during the tour included the Hudson Tunnel Project, Portal North Bridge, Penn Station Capacity Expansion, the Sawtooth Bridges Replacement, and the Harrison Fourth Track.

    Since the summer of 2024, Pallone has been seeking answers and improvements following numerous disruptions on the Northeast Corridor. After a major electrical malfunction in May, Pallone sent a letter demanding that Amtrak prioritize federal funds for modernization and ensure reliable service. In response, Amtrak outlined steps to address the service failures, but Pallone continued to press for immediate solutions as issues persisted. He has since engaged in regular calls with Amtrak CEO Stephen Gardner, emphasizing transparency, accountability, and the need for regular updates on progress. Pallone has also condemned proposed Republican budget cuts to Amtrak, warning they would undermine critical infrastructure improvements.

    Pallone’s months-long efforts culminated in today’s tour of key NEC projects, showcasing the urgent need for continued upgrades. He urged Amtrak and NJ Transit to expedite efforts to fix century-old overhead wires and complete major infrastructure projects.

    The tour concluded with a press gaggle at New Brunswick Station, where Pallone and other members of New Jersey’s congressional delegation reiterated their commitment to improving rail service for the state’s commuters. Pallone emphasized the importance of federal support to ensure these projects are completed and provide long-lasting benefits for the region.

    “We appreciate the New Jersey Congressional Delegation’s keen interest in the century-old infrastructure along Amtrak’s Northeast Corridor that has suffered from decades of disinvestment,” said NJ TRANSIT President & CEO Kevin S. Corbett. “NJ TRANSIT, with support from Governor Murphy and our delegation, will continue to work collaboratively with Amtrak to support accelerating all the necessary infrastructure improvements that will deliver the best possible customer experience for generations to come.”

    “Amtrak and NJ TRANSIT are working hard to fix the range of issues that plagued us in May and June, and while major disruptions have been greatly reduced, our collaboration is not stopping as we continue to inspect, maintain and improve service for all customers and seek to identify and fix root causes,” said Amtrak CEO Stephen Gardner. “We are thankful to have the opportunity to host Congressman Pallone and the rest of the New Jersey Congressional delegation so they can see the infrastructure and our collaborative efforts first-hand. We greatly appreciate the Delegation’s leadership in seeking to secure the federal investments necessary to modernize our infrastructure for improved reliability.”

    “Today’s tour was an important step in our efforts to improve service, efficiency, and safety for NJ Transit and Amtrak customers,” said Congressman Rob Menendez (NJ-08). “Since coming to Congress, I’ve made this a top priority — directly addressing the challenges with Secretary Buttigieg, encouraging continued collaboration with our partners across federal and state government, and working to deliver funding to improve rail service in New Jersey. I’m looking forward to continuing to work with my colleagues in the delegation to bring relief to our constituents.”

     “Fixing and strengthening public transit in New Jersey must be a top priority to help families struggling with affordability and reliability,” said Congressman Kim. “Today’s tour showed that there’s been progress to prevent disruptions and improve service, but there’s more to be done. I’ll continue working with my colleagues to keep investing in public transit so New Jerseyans can get to work and get home safely and on time.”

    “I was pleased to get Amtrak and NJ TRANSIT leadership in the same room with members of the New Jersey Congressional Delegation to discuss how we can work together going forward to address the most pressing concerns for New Jersey commuters while fighting for additional federal funding to make both short and long-term upgrades to infrastructure along the Northeast Corridor. It’s essential for our state: New Jersey families must be able to rely on high quality, affordable, and accessible transportation. That’s why I have been leading efforts with Reps. Pallone, Menendez, and the Jersey delegation to hold Amtrak and NJ TRANSIT accountable for the ongoing delays, maintenance failures, and lack of communication with riders that have created another “Summer of Hell” for New Jersey commuters. Today’s conversations were a step in the right direction,” said Rep. Sherrill.

    “When our trains aren’t functioning properly, it’s not just a headache for commuters, it takes money right out of their pocketbooks. It’s critical that we all sit at the table together to discuss these problems. I’m glad that today, we’re taking steps to do just that and get our trains, our commuters, and our economy back on track as quickly as possible,” said Congressman Josh Gottheimer (NJ-5). “I will always fight to make life more affordable for commuters and ensure they can show up to work, see loved ones, and provide for their families.“

    MIL OSI USA News –