Category: Americas

  • MIL-OSI Europe: Answer to a written question – Spread of South African citrus thrips in the Mediterranean basin – E-001639/2024(ASW)

    Source: European Parliament

    The Commission invests in plant health research and innovation, with EUR 189 million allocated over the past four years through Horizon Europe[1], and keeps it as a priority in the next work programmes under Cluster 6 ‘Food, Bioeconomy, Natural Resources, Agriculture and Environment’[2] of Horizon Europe[3].

    At present, there is no project relating to the Scirtothrips aurantii. A call for proposals for projects related to regulated pests has recently closed and is currently under evaluation[4].

    Both Spain and Portugal apply eradication measures for Scirtothrips aurantii. Regulation (EU) 2021/690[5] allows them to request co-financing for eradication measures.

    When eradication is no longer possible, Member States request for containment measures, which should be adopted by an Implementing Regulation. To date, the Commission has not received such request from Spain or Portugal.

    As regards the import of citrus fruit, cold treatment has been added to the EU requirements as a measure to guarantee freedom from Thaumatotibia leucotreta in oranges.

    The EU follows a risk-based approach as regards protective measures against pests. To date there is not sufficient evidence to support an extension of that measure to other citrus fruits for other Union quarantine pests.

    Regulation (EU) 2022/2389[6] on frequency rates prescribes 100% identity and physical checks at import for citrus fruits, except for those referred to Annex I of that regulation.

    The number of non-compliances at import is a criterion for deciding the frequency rates. As regards controls at origin, the Commission has carried out audits[7] in many third countries that the EU imports citrus fruits from, including South Africa, Zimbabwe, Brazil, Argentina, Israel and Tunisia.

    • [1] https://research-and-innovation.ec.europa.eu/document/e8a5772e-9fca-4583-a81b-649729068f1e_en
    • [2] https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe/cluster-6-food-bioeconomy-natural-resources-agriculture-and-environment_en
    • [3] https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe/strategic-plan_en
    • [4] https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/opportunities/topic-details/horizon-cl6-2024-farm2fork-02-4-two-stage
    • [5] https://eur-lex.europa.eu/eli/reg/2021/690/oj
    • [6] https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32022R2389&qid=1695292904290
    • [7] https://ec.europa.eu/food/audits-analysis/audit-report

    MIL OSI Europe News

  • MIL-OSI: CORRECTION — Real Estate Split Corp. Announces Overnight Offering

    Source: GlobeNewswire (MIL-OSI)

    In a release issued earlier today under the same headline by Real Estate Split Corp. (TSX: RS and RS.PR.A), please note that in the second sentence of the second paragraph, the closing date should be October 30, not October 31. The corrected release follows:

    Not for distribution to U.S. Newswire Services or for dissemination in the United States.

    TORONTO, Oct. 23, 2024 (GLOBE NEWSWIRE) — Real Estate Split Corp. (TSX: RS and RS.PR.A) (the “Company”), is pleased to announce that the Company is undertaking an overnight treasury offering of class A and preferred shares (the “Class A Shares” and “Preferred Shares”, respectively).

    The sales period for this overnight offering will end at 9:00 a.m. (ET) on Thursday, October 24, 2024. The offering is expected to close on or about October 30, 2024 and is subject to certain closing conditions including approval by the Toronto Stock Exchange (“TSX”).

    The Class A Shares will be offered at a price of $12.90 per Class A Share to yield 12.1% and the Preferred Shares will be offered at a price of $10.10 per Preferred Share to yield 4.4% to maturity. The closing price on the TSX for each of the Class A Shares and Preferred Shares on October 22, 2024 was $13.21 and $10.16, respectively. The Class A Share and Preferred Share offering prices were determined so as to be non-dilutive to the most recently calculated net asset value per unit of the Company (calculated as at October 22, 2024), as adjusted for dividends and certain expenses to be accrued prior to or upon settlement of the offering.

    The Company has been designed to provide investors with a diversified, actively managed, high conviction portfolio comprised of securities of leading North American real estate companies.

    The Company’s investment objectives for the:

    Class A Shares are to provide holders with:

    (i) non-cumulative monthly cash distributions; and
    (ii) the opportunity for capital appreciation through exposure to the portfolio

    Preferred Shares are to:

    (i) provide holders with fixed cumulative preferential quarterly cash distributions; and
    (ii) return the original issue price of $10.00 to holders upon maturity.

    Middlefield Capital Corporation provides investment management advice to the Company.

    The syndicate of agents for the offering is being co-led by CIBC Capital Markets, RBC Capital Markets, and Scotiabank.

    For further information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.

    A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. The Company intends to file a supplement to the short form base shelf prospectus, and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the securities commissions or similar authorities in each of the provinces and territories of Canada.

    The MIL Network

  • MIL-OSI Video: Human rights defenders help realize the Sustainable Development Goals | United Nations

    Source: United Nations (Video News)

    Human rights defenders are central to realizing the Sustainable Development Goals, a United Nations independent expert says. UN Special Rapporteur Mary Lawlor speaks alongside two defenders who champion rights at great cost. Wellington Gabriel de Jesus dos Santos, from the Pitanga dos Palmares Quilombola community in Brazil, lost his father, who was shot dead outside in 2017, and his grandmother, who in 2023 was also brutally killed in response to her human rights work. Emily Donovan, a co-founder of Clean Cape Fear, a grassroots community action group in North Carolina, works to restore and protect air, soil, water and food supply from contamination from PFAS substances known as forever chemicals. Both took their causes to the United Nations, where the Special Rapporteur urged protections for human rights defenders around the world.

    https://www.youtube.com/watch?v=Bm2RWOQTcuM

    MIL OSI Video

  • MIL-OSI Video: NASA’s SpaceX Crew-8 Re-entry and Splashdown

    Source: United States of America – Federal Government Departments (video statements)

    Watch Crew-8 return to Earth, concluding their mission to the International Space Station. Their SpaceX Dragon spacecraft is scheduled for splashdown off the coast of Florida on Friday, Oct. 25 at approximately 3:29 a.m. EDT (0729 UTC).

    NASA astronauts Michael Barratt, Matthew Dominick, and Jeanette Epps and Roscosmos cosmonaut Alexander Grebenkin are coming home after seven months aboard the orbiting lab, conducting scientific experiments and technology demonstrations.

    Astronauts Butch Wilmore and Suni Williams, who launched to the station aboard NASA’s Boeing Crew Flight Test (CFT) this summer, will return to Earth with the two members of NASA’s SpaceX Crew-9 mission in the spring of 2025. Learn more about CFT: https://nasa.gov/starliner-faq

    Crew-8’s science highlights: https://www.nasa.gov/missions/station/iss-research/crew-8-concludes-space-station-scientific-mission/

    Credit: NASA

    https://www.youtube.com/watch?v=5CRB3FHV9Dw

    MIL OSI Video

  • MIL-OSI Video: Border Patrol Teaches You the Skills You Need – Learn Spanish at the Academy – Hiring Process | CBP

    Source: United States of America – Federal Government Departments (video statements)

    As a Border Patrol Agent, you will attend training at the U.S. Border Patrol Academy in Artesia, New Mexico. As a part of your training, you will be required to speak and understand Spanish. This video provides an overview of the Spanish requirement, the approach to learning at the U.S. Border Patrol Academy, and helpful resources to kickstart your journey.

    Join our Talent Network: https://go.dhs.gov/3zg

    Start Your Application: https://www.cbp.gov/careers/apply-now

    Instagram ➤ https://instagram.com/CBPgov
    Facebook ➤ https://facebook.com/CBPgov
    Twitter ➤ https://twitter.com/CBP
    Official Website ➤ https://www.cbp.gov

    https://www.youtube.com/watch?v=kqZKj0jZia0

    MIL OSI Video

  • MIL-OSI Video: Reducing Plastic Pollution and Improving Human Health

    Source: United States of America – Federal Government Departments (video statements)

    In this Bite-Size Learning session, “Reducing Plastic Pollution and Improving Human Health”, Erin Simon, Vice President of Plastic Waste and Business at the World Wildlife Fund (WWF), discusses the harmful impacts of plastic on human health and the environment and steps that WWF and its partners are taking to address it, including through WWF’s Resource: Plastic initiative.

    The session also covers actions being taken by the Administration, including recently announced White House commitments to reducing plastic pollution within the federal government and the global plastics treaty process. The session provides an understanding about what federal agencies, businesses, and individuals alike can do to act on the plastics crisis.

    Be Part of the Solution

    The Go Green Get Healthy HHS program is challenging the U.S. Department of Health and Human Services (HHS) workforce to focus on small changes each of us can make to reduce plastic waste now and all year!

    Besides creating an environmental nightmare, plastic pollution has a health impact. Plastic does not biodegrade, it just gets smaller and smaller, forming nano- and microplastics. Plastic is made from a derivative of crude oil and often contains toxic chemicals. As plastic breaks down, toxic chemicals are released into the ground, water, and air which affects the food we eat, water we drink, and air we breathe. To learn more about the effect of microplastics on your health, watch Earth Day 2024 presentations on this Go Green Get Healthy HHS playlist on the HHS YouTube channel https://www.youtube.com/playlist?list=PLrl7E8KABz1Ht0EWIT9IcaKpXKy8ViQ3m. Plus, you can view the FY 2023 HHS Green Champion Awards ceremony in the playlist.

    Join the millions of people worldwide reducing plastic waste by choosing to refuse single-use plastic. BE part of the solution! As Confucius says, “The man who moves a mountain begins by carrying away small stones.”

    Greater change occurs when a larger group makes smaller changes versus a smaller group that makes large changes. For example, if all HHS employees reduced plastic use by 90%, they would save nearly 11,000 tons of plastic waste annually! And, if the entire federal government staff reduced plastic use by just 10%, 45,000 tons of plastic waste would be reduced each year.
    Use the Home Plastic Checklist https://www.plasticfreeseas.org/wp-content/uploads/2020/05/Plastic-free-living-checklist.jpg to get started.

    So come on, step up and lead the way!

    There were 665 attendees who benefitted from this session! The event was hosted by the Go Green Get Healthy HHS sustainability team on August 27, 2024. Gain knowledge and power by attending our Bite-Size Learning sessions! If you have any questions, please email GoGreen@hhs.gov.

    U.S. Department of Health and Human Services (HHS) | http://www.hhs.gov

    http://www.Twitter.com/HHSGov | http://www.Facebook.com/HHS http://www.Instagram.com/HHSGov
    http://www.LinkedIn.com/company/us-department-of-health-and-human-services

    HHS Privacy Policy: http://www.hhs.gov/Privacy.html

    https://www.youtube.com/watch?v=0_6ul0HnnOI

    MIL OSI Video

  • MIL-OSI Video: Powering Communities: Building Resilience in Estes Park, CO

    Source: United States of America – Federal Government Departments (video statements)

    In Estes Park, Colorado, the threat of wildfires, high winds, and flooding has put the local electric grid at risk. To ensure critical infrastructure like the hospital remains powered, Platte River Power Authority in partnership with the State of Colorado Energy Office and the Grid Deployment Office is installing an innovative battery storage project. This project aims to strengthen the grid and help Estes Park power through future severe weather events. Learn more about how this community is taking action to secure its energy future.

    #EstesPark #BatteryStorage #Resilience #ColoradoEnergyOffice #PlatteRiverPowerAuthority #EstesParkPower

    https://www.youtube.com/watch?v=oMfxEPnl1OA

    MIL OSI Video

  • MIL-OSI Video: Secretary Pete delivers remarks at the Gulf Coast Rail Groundbreaking

    Source: United States of America – Federal Government Departments (video statements)

    The Biden-Harris Administration is making historic investments in passenger rail. The Gulf Coast Corridor Improvement Project restores Amtrak service from New Orleans to Mobile, AL—for the first time since Hurricane Katrina ended service in 2005.

    0:00 — Amtrak Conductor John Morgan
    2:14 — Secretary Pete Buttigieg

    https://www.youtube.com/watch?v=KB67s4-vsaY

    MIL OSI Video

  • MIL-OSI Canada: Funding for encampments: Minister Nixon

    Source: Government of Canada regional news

    “The province has not received, nor has the province declined, an offer on encampment funding. It is disappointing to see that the federal government is playing politics with vulnerable Albertans.

    “We did receive a letter from federal Minister of Housing, Infrastructure and Communities Sean Fraser that initiated planning for federal encampment funding. However, there was no offer of encampment funding and at no point was a deadline provided to the province to finalize an agreement. Officials have met regularly to discuss the best use of these potential funds, including as recently as Monday, Oct. 21.

    “This year alone, Alberta’s government is investing almost $210 million in homelessness initiatives – the highest investment in the province’s history. We have increased our shelter capacity to the most in Alberta history and are operating below capacity.

    “While Alberta is open to federal partnership on these issues, we are not interested in playing politics with the federal government. Alberta will continue investing in this life-changing work, with or without the federal government.”

    MIL OSI Canada News

  • MIL-OSI USA: Federal Judge Rebuffs Pittsburgh Post-Gazette’s Claim That U.S. Labor Law Violates Constitution

    Source: Communications Workers of America

    PITTSBURGH, Pa. – A motion by representatives of the Pittsburgh Post-Gazette arguing that the National Labor Relations Act (NLRA) is unconstitutional was rejected by U.S. District Court Judge Cathy Bissoon on Tuesday.

    The Post-Gazette (“PG Publishing Co.”) is facing an injunction hearing on Monday, Oct. 28, in which the National Labor Relations Board will seek a ruling from Judge Bissoon ordering and enjoining the PG to stop violating federal labor law, bargain with its workers in good faith, and pay for their health care costs until a new collective bargaining agreement (CBA), or health care plan, is agreed.

    With its rejected motion, the PG joined Elon Musk, Trader Joe’s, and Amazon in claiming that the NLRA, which has regulated labor relations in the U.S. since its passage in 1935, violates the constitution. Judge Bissoon dismissed these arguments.

    “While PG’s positions are not outlandish by contemporary standards, this Court declines its invitation to ignore nearly a century’s worth of settled jurisprudence. See NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1 (1937),” Bissoon wrote in her order. “Although respect for stare decisis appears less ‘in vogue’ as of late, there is something to be said for tradition. The undersigned will continue to respect it.”

    Striking pressworkers, advertisers, and mailers have been on strike since October 6, 2022, following the PG unilaterally canceling the health care of its production and distribution workers over an increase in costs of $19 per week per person.

    Editorial workers in the Newspaper Guild of Pittsburgh joined them on Oct. 18 on an unfair labor practice strike stemming from the company’s illegally unilateral decision to tear up the Guild’s contract in July of 2020 and from the company’s other illegal behavior.

    “The Post-Gazette’s owners have gone beyond breaking the law and have argued that there should be no law at all,” said CWA District 2-13 Vice President Mike Davis. “It would be laughable at this point if it wasn’t causing real damage to the Post-Gazette’s workers and their families and undermining the news coverage that the people of Pittsburgh deserve. We are pleased that Judge Bissoon has rejected the Post-Gazette’s frivolous attempt to eliminate the National Labor Relations Act so we can focus on the real issue—the Post-Gazette’s failure to follow the law.”

    Monday’s hearing in front of Judge Bissoon is scheduled to begin at 10 a.m. at the federal courthouse at 700 Grant St. in Downtown Pittsburgh.

    ###

    About CWA: The Communications Workers of America represents working people in telecommunications, customer service, media, airlines, health care, public service and education, manufacturing, tech, and other fields.

    cwa-union.org @cwaunion

    MIL OSI USA News

  • MIL-OSI USA: SBA to Help Michigan Businesses Affected by Drought

    Source: United States Small Business Administration

    ATLANTA – The U.S. Small Business Administration (SBA) announced today that federal Economic Injury Disaster Loans (EIDLs) are available in Michigan for small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private nonprofit organizations with economic losses from drought that began on Oct. 8.

    The declaration includes the primary County of Lenawee, and the adjacent counties of Hillsdale, Jackson, Monroe and Washtenaw in Michigan, and Fulton and Lucas in Ohio.  

    “When farmers face crop losses and a disaster is declared by the Secretary of Agriculture, SBA working capital loans become a lifeline for eligible small businesses,” said Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “These loans are the backbone that helps rural communities bounce back and thrive after a disaster strikes.”

    Under this declaration, the SBA’s Economic Injury Disaster Loan (EIDL) program is available to eligible farm-related and nonfarm-related entities that suffered financial losses as a direct result of this disaster.  Apart from aquaculture enterprises, SBA cannot provide disaster loans to agricultural producers, farmers, and ranchers. Nurseries are eligible to apply for economic injury disaster loans for losses caused by drought conditions. 

    The loan amount can be up to $2 million with interest rates of 4% for small businesses and  
    3.25% for private nonprofit organizations, with terms up to 30 years. Interest does not accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms based on each applicant’s financial condition. Eligibility is based on the size of the applicant, type of activity and its financial resources. These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits. 

    On October 15, 2024, it was announced that funds for the Disaster Loan Program have been fully expended. While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors. Applications will continue to be accepted and processed to ensure individuals and businesses are prepared to receive assistance once funding becomes available.

    Applicants are encouraged to submit their loan applications promptly for review in anticipation of future funding.

    For information and to apply online visit SBA.gov/disaster. Applicants may also call the SBA’s Customer Service Center at (800) 6592955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services. 

    Submit completed loan applications to SBA no later than June 16, 2025. 

    ###

    About the U.S. Small Business Administration

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow, expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov. 

    MIL OSI USA News

  • MIL-OSI USA: Administrator Samantha Power in Phnom Penh, Cambodia

    Source: USAID

    The below is attributable to Spokesperson Benjamin Suarato:

    Today, Administrator Samantha Power was in Phnom Penh for the second day of her visit to Cambodia. She met with Prime Minister Hun Manet at the Peace Palace, where they discussed the U.S. and Cambodia’s shared interest in fostering a deeper bilateral relationship. Noting that her visit marked the first time a USAID Administrator had traveled to Cambodia, Administrator Power recognized the significant progress achieved through collaboration between USAID and the Government of Cambodia in areas such as health, education, and environmental protection. 

    Administrator Power also recognized Cambodia’s achievements on reducing deaths from tuberculosis and malaria. Administrator Power and Prime Minister Manet discussed the importance of the U.S. and Cambodia working together to address the online scam industry, demining and the removal of unexploded ordnance, global health security, reducing lead exposure for children, and other issues of mutual concern. Administrator Power underscored the strong U.S. support around the world and in Cambodia for workers’ rights and civil society, as well as concerns about issues such as closing civic space and press freedoms. 

    Administrator Power met with Yeang Chheang, a medical entomologist who saved countless lives by distributing malaria medication during the deadly Khmer Rouge regime in the mid-1970s, and who subsequently helped rebuild Cambodia’s National Malaria Program. She congratulated Mr. Chheang for receiving the “Unsung Hero” award at the United Nations Climate Change Conference (COP28) in Dubai in December 2023 for his efforts to eliminate malaria and shared her appreciation for his valuable contributions to the U.S. President’s Malaria Initiative (PMI). With U.S. government support through PMI, by 2025 Cambodia is on track to become the first PMI bilateral country to reach malaria elimination.  

    Administrator Power participated in meetings to hear from Cambodians about how the U.S. can best support progress on rights, governance, and rule of law. These meetings included engagements with civil society leaders, as well as other individuals with perspectives on these issues.

    Administrator Power also visited the Mekong River, along with USAID partners, Cambodian government officials, researchers, students, conservationists, and fisherpeople. Traveling by boat down the Tonle Sap River to the confluence with the Mekong River, Administrator Power released endangered fish into the river waters to demonstrate USAID’s support for healthy and thriving inland waterways that promote livelihoods, economic independence, autonomy, and food security. She underscored the U.S. government’s support under the Mekong-U.S. Partnership for autonomy, protecting endangered aquatic marine life, and safeguarding the ecosystem of the Mekong watershed and other natural resources in Cambodia. USAID will continue to support Mekong conservation efforts in Cambodia and their expansion to the broader Mekong sub-region.

    Additionally, Administrator Power met with U.S. Embassy Phnom Penh and USAID/Cambodia staff to celebrate their efforts and achievements to advance the U.S.-Cambodia relationship. To close out her trip, Administrator Power held a press conference and announced more than $50 million in new USAID and U.S. government programs and initiatives to assist farmers, expand the Wonders of the Mekong, support civil society and media, and more.

    MIL OSI USA News

  • MIL-OSI USA: Administrator Samantha Power at a Press Conference in Phnom Penh

    Source: USAID

    ADMINISTRATOR SAMANTHA POWER: Thank you all. It is great to see everyone this evening. 

    It has been a great pleasure for me to be back in Cambodia for my fourth visit. In previous visits, of course, I have been awed by the majesty and rich culture of Angkor Wat, the incredible power and importance of the Tulsa Lang Genocide Museum, and, of course, the beauty of the Mekong River.

    Being back here and discussing the deepening engagement between our two countries has been very enlightening for me. The partnership of today builds on several decades of investment by USAID in support of the dignity and prosperity of the Cambodian people. 

    I feel, personally, very fortunate to be the first USAID Administrator to visit Cambodia while in this role, and I have taken many notes about the priorities of the Government officials, students, and civil society leaders that I’ve had the chance to engage with.

    Over the past few decades, the Cambodian people have made really remarkable strides to improve health, education, and economic growth. We, in the United States, again, have been able to support these efforts, including with a total of $3 billion in assistance over the past more-than-30 years. 

    We, in these years, supported the efforts of public health heroes like Mr. Yang Chiang, this country’s first entomologist, who I had the honor of meeting today. A man who has dedicated his life to trying to eliminate malaria here in Cambodia, and an individual who has been able to see with so many of you that Cambodia now has marked six straight years without a single death from malaria, and thus, again, is on the cusp of meeting this goal of eliminating malaria in this country.

    We also have supported Cambodia’s education system to get more kids into school. Since 2007, the number of children enrolled in preschool programs has more than doubled, and Cambodia is close, in fact, to achieving universal access to primary education. USAID programs have doubled reading scores among the children that we have worked with, and we are now seeing the Cambodian Government using these same approaches to help even more young people. 

    We worked as well to increase trade between our two countries, and today, the United States is Cambodia’s largest export market. Over the past five years, indeed, Cambodia’s exports to the United States have more than doubled. There is meaningful progress like this to celebrate, and on this trip, I am glad to announce over $50 million in new funding from across the U.S. government to try to build on some of this progress.

    With these funds, we will invest in helping Cambodian farmers connect with markets and adopt new technologies to keep producing plentiful and safe food, even as the climate changes. We will invest in keeping the Cambodian people safe by clearing landmines and other unexploded ordinances, building on decades of efforts to address the dangerous legacies of war. And importantly, we will invest in supporting civil society, labor, and independent media, investments that will not only support Cambodia’s democratic future but its economic future, as well. 

    On this visit, I have met with Cambodians from all walks of life – families fostering kids with disabilities, students and environmentalists, workers who care for some of this country’s most sacred sites, doctors, nurses and community health workers, labor activists, and brave individuals who seek to hold those with power accountable to the principles enshrined in this country’s constitution: democracy, human rights, transparency. 

    There is great potential for the relationship between the United States and Cambodia to grow stronger, and, as is the case in all of our important relationships, there are also concerns, including about unjustified arrests and threats to basic rights. We are following the case of journalist Mech Dara very closely, including some potential developments today. I had a chance to both meet with Dara’s family, and to raise this issue, along with other concerning cases, in my meeting with the Prime Minister today. 

    All of these cases are sensitive, but I will just underscore that we have emphasized our support for finding positive resolutions. More broadly, as I discussed with Prime Minister Hen Mannet earlier today, American and international companies see real opportunity here in Cambodia. But, in order to invest here, they want to see meaningful improvements in the business enabling environment, to tackle corruption, to improve respect for labor rights, and to address the cyber scam operations plaguing Cambodia’s international reputation. 

    Working toward greater transparency, accountability and protection of human rights can unlock extraordinary prosperity for the Cambodian people. That can be the promise of a new generation, and we, in the United States, will be eager partners in working together to achieve it. 

    Thank you so much, and I look forward to taking your questions.

    QUESTION: Thank you. Hi, I’m Prak Chan Thul from Kiripost. So, you said you announced $50 new million for Cambodia. What? What have you heard from the authorities of the Cambodian government that in return of this new aid and what have you – what will you promise in the case of Mech Dara, will he be released? Thank you.

    ADMINISTRATOR POWER: Thank you. I’m not going to comment further on Mech Dara’s case beyond to stress the importance of independent media, of checks and balances, and of the rule of law. 

    With regard to the new investments that have been announced. They range from an additional investment in the prevention of tuberculosis. I was able, yesterday in Siem Reap, to witness a very energetic effort to reach at least some of the Cambodians who have tuberculosis, but often do not know they have TB until it is not only too late for them, but too late for others, given how the disease spreads. So, USAID is partnering with community-based organizations that will reach citizens where they are, not expecting citizens to experience a symptom and then travel a long way to get a diagnosis, but an effort really to make the diagnostic technology more mobile and more readily available. And, this is with an eye to helping Cambodia and Cambodians reach the goal that the government has set to eliminate TB by 2030. So, this is a $4 million investment in a local organization that is driving some of this community based work to get rid of TB. 

    In addition, just to stay in the area of public health, we have announced an additional $1 million to invest in doing a survey for the Cambodian people of blood lead levels. There is significant lead poisoning among children in many developing countries, including Cambodia, but understanding exactly where those elevated levels of lead in the blood are clustered, understanding the sources of lead poisoning is absolutely critical to eliminating lead poisoning going forward. 

    And, this was something – both this and TB and, of course, all of the work we have done together on malaria, were each topics that I had a chance to discuss with the Prime Minister, and sensed a lot of enthusiasm to go forward again with the efforts to eliminate TB, and the effort now to get a handle on precisely what the sources of lead poisoning are so as to embark on a multi-faceted effort to regulate lead and to ensure that Cambodia’s children are no longer exposed to something that can be very harmful to educational attainment, and can ultimately even cause premature death. 

    We also are announcing an investment of an additional $5 million to support workers, civil society, and independent media. And here, let me just note, obviously these are investments in non-governmental actors. But, one of the topics that we discussed at length with the Prime Minister was his broad ambition to attract more foreign investment, to take steps that will ensure that the economy continues to grow and even grows more, and creates jobs for all of the young people who are looking for jobs every year. But, it is really, really important for investors to have confidence in the rule of law, for corruption to be tackled, so that, for example, American companies can feel confident that they can invest here without having to pay bribes or engage in kickbacks, which are illegal in the United States. 

    And so, these investments in civil society, in media, in the dignity of work and workers – all of these are investments as well in Cambodia’s economic development and that broad ambition that so many Cambodians have for their children to enjoy a more prosperous future than they themselves.

    QUESTION: Hi, my name is Danielle Keaton Olson. I’m a freelance journalist based in Phnom Penh, and I was wondering so, Cambodian-based labor rights organization called Central has gotten under fire for receiving foreign funding. The Cambodian government has criticized it for receiving foreign funding. And, of course, there’s been the arrest of our colleague and the U.S. recognized Trafficking-In-Persons report hero, Mech Dera. Are these raising alarms or concerns within USAID at this moment?

    ADMINISTRATOR POWER: Well, I have had the chance on this visit to sit down with individuals from Central and to hear firsthand about the experiences that they have been having, the level of the scrutiny of their operations, and the concerns that they have about being able to continue doing the work that has proven so important for workers rights here in Cambodia. I also had a chance in Siem Reap to meet with individuals who have helped organize, those who actually maintain these cherished tourist sites, and who themselves have organized in order to secure better wages, better working conditions, better hours, et cetera. 

    President Biden is laser-focused on labor rights at home and indeed has shown tremendous initiative and leadership on promoting global labor rights. And so, it was very important in having this visit for us to sit down and dig into just those issues. And, one of the arguments that I made today with the government, and it’s an argument again that U.S. officials are making all around the world, is that labor rights and workers abilities – a worker’s ability and workers’ abilities to advocate for themselves without fear of persecution, is absolutely critical to growing the economy in a manner that expands livelihoods and prosperity for all Cambodians. 

    So, this is not simply an issue of human rights, which it is, it is also absolutely critical that the freedom to organize, the freedom to associate, the freedom to express one’s concerns, be protected. And, I think that is the foundation to an economy that will not only grow but grow in an inclusive manner that benefits ordinary Cambodians and not merely those who have benefited from growth in prior generations.

    QUESTION: Sorry. Has it – just to clarify – Has it raised some concerns about USAID ability to support these values that, in terms of labor rights and independent media, that the U.S. government values?

    ADMINISTRATOR POWER: Well, as I indicated in announcing additional support, you know, when these rights are challenged, it becomes all the more important for USAID to be working in partnership with those who are bravely defending those rights. And so, I actually think it underscores the importance of these investments, and I think that is certainly the message that I heard from the labor organizers that I’ve spoken with over the last few days – is both the resources to support those who are organizing, but also what we call the development diplomacy, you know, raising these – raising with senior government officials, the importance of these rights being protected and respected. And, the United States is not alone in raising these concerns. Obviously, other democracies are intent as well in raising concerns about, again, some of what appear to be the growing pressures on workers and on unions and on labor organizers. 

    QUESTION: Good evening, madam. My name is Hul Reaksmey. I am reporter from Voice of America. My question is, what is your observation about Chinese growing in Cambodia, when you talk about Cambodia effort to improve democracy?

    ADMINISTRATOR POWER: Sorry, just a little bit hard to hear. Maybe just slow down, and I heard the first part, but just the last part of your question?

    QUESTION: Does the Chinese growing influence undermine efforts of Cambodia to improve democracy?

    ADMINISTRATOR POWER: Thank you. Well, one of the things that the United States stresses in the countries where it works around the world is the importance of transparency, a spirit of partnership, the importance of natural resources being protected and preserved. As we just discussed, the importance of civil society and non-governmental actors, holding government accountable, and maybe this is a point I would stress even the most strongly, the importance of the investments we make, strengthening a country’s path to independence, rather than any kind of dependence. And so, one of the things that really stands out for me in terms of the U.S. development model is that we provide our support by-and-large through grants. 

    It’s extremely important to us that when we invest in health programming or education programming or food security efforts, like the USDA program that I’ve announced on this visit; or demining, like the additional $12 million that I announced on this visit, that the Cambodian people understand that these resources are invested in a spirit of partnership. 

    We are listening to our Cambodian partners and trying to mobilize resources in support of their objectives. What we do not want is for Cambodia or the Cambodian people to be somehow indebted to us in a manner that actually impedes this country’s economic development. 

    So, just to give you one statistical example of this. The United States invests about nine dollars in grants for every dollar of loan that the United States provides. The PRC invests about nine dollars in loans for every dollar in grants. And, one of the challenges – and these numbers are lower, I think, than the actual number, but at least that is the ratio, at least – one of the challenges that can saddle future generations with the obligation to repay debt, often at high interest, debt that was incurred long before.

    Again, our goal is for Cambodia to move, once and for all, from aid to trade. We know the capability of the Cambodian people. We see it in the incredible economic growth that this country has enjoyed. We see it in the resilience of the people who have gone through so much over the generations. And, what we seek to do is to be catalytic and responsive to our partners objectives, but the ultimate objective is for a sovereign and independent Cambodia to make its own choices about how to deploy its own resources, including its tremendous human capital.

    QUESTION: Hello, good evening ma’am. And my name is Ko Ratha from the Cambodia-China Times, and we call in Khmer the CC-Times. And, I have some questions for you. I just would like to say, this is very busy trip to Cambodia. And my first question is, how do you think about the development in Cambodia? As you mentioned that this is your fourth trip to Cambodia. And the second one is, why Americans decided to support more aid to Cambodia? And the last one, what is your encouragement in order to use aid in the right way and now the U.S. purpose?

    ADMINISTRATOR POWER: Well, I have only been USAID Administrator now for more than three and a half years, let’s say, but one of the things that is wonderful about visiting Cambodia is to see the way in which previous investments by USAID and really from the American people, have produced such significant results here. 

    I gave the example of the elimination of malaria. The work done to eliminate malaria was done by Cambodians. It’s Cambodia that achieved, is on the verge, I should say, of achieving that very, very significant accomplishment. But USAID has been present over the last several decades in supporting that work. I mentioned in education that USAID has made investments in looking to see what forms of education are having the greatest impact with students. That’s a, you know, relatively small program, but that produced really valuable information, and now the Ministry of Education is using that information to inform its decisions about curriculum. 

    I think these are two really important examples of how this assistance can flow. It starts with respecting the judgment and the priorities of the Cambodian people. One of the things about USAID that is not well known, and even that I was not aware of before I came to USAID, is that three quarters of our staff in the countries in which we work are nationals of the countries in which we work. So, here, of course, that means that the vast majority of our staff here in Cambodia are Cambodians who live in their communities – who listen to their neighbors, who understand the importance of making health progress, and also understand the importance of fighting corruption, and ensuring that political reform and economic development go hand in hand. 

    So, I think that is our posture going forward – as we have been present in the country in some form since just after the Paris Peace Agreements, since 1993-1994 – we have learned a lot, and the people from whom we have learned the most are the Cambodian people. So, I think our presence here is not about, you know, geopolitical competition, it is about advancing the dignity, prosperity, and peace for Cambodians. 

    QUESTION: I wanted to follow up on the aid that was rescinded and then reinstated last year after the election, which the State Department called the Cambodian election last year, neither free nor fair, and then $18 million U.S. aid was withheld. Then that decision was reversed two months later. The U.S. Embassy told Cambodian news at the time that the aid was reinstated to, “encourage the new government to live up to its stated intentions to be more open and democratic.” So, a year later, I just wanted to follow up and ask, do you think it worked?

    ADMINISTRATOR POWER: Well, first, I think it’s important to discuss the aid itself, and I don’t need to repeat what we’ve already discussed here today, but when we invest $12 million in demining, that means fewer kids are going to run into unexploded ordinances. When we invest in moving diagnostic equipment that does X-rays of the lungs, that means fewer people are going to carry TB without knowing it. And, when we invest after COVID-19 and the horrible toll that that took here, not only on human health, but on the economy. When we invest in lab equipment and surveillance to prevent future global health security threats, that’s a really important investment in Cambodia’s health and stability, but also in America’s health. Every investment in global health security that we make internationally ultimately benefits us all, since we are connected. 

    So, I think that there absolutely is an effort to engage the government that has been now in office for 14 months, and to raise concerns about individuals who have, in some cases, exposed challenges in Cambodia that the Cambodian people benefit from seeing exposed like the scamming centers, like corruption, like human rights abuse by police or others. 

    We over this last or really over these last decades, but including with the new government, have made investments in labor organizing, in independent media, in these civil society organizations. At the same time, we have pressed these issues through our development diplomacy. 

    I don’t think that the United States, anywhere in the world, gives up on its efforts to promote human rights, to stress the linkage between economic progress and checks and balances, and again, the protection and promotion of human rights. And, of course, there are issues of concern, just as there were when the pause was put in place. 

    But, our programming resources do not go to the government. They go to non-governmental organizations. They go to the very organizations that, in many cases, are holding government accountable. In health, of course, goes to community based organizations that, yes, work alongside the Ministry of Health, but it is really important to take note that our assistance is to the people of this country, and that assistance, as we examine it, if it is advancing dignity, advancing checks and balances, it’s important to sustain those investments over time. 

    MIL OSI USA News

  • MIL-OSI USA: The United States Announces New Programs and more than $38 Million in Additional Funding for Cambodia

    Source: USAID

    Today in Phnom Penh, Administrator Samantha Power announced new investments and support for the Cambodian people through a range of new and expanded U.S. activities in food security, the environment, civil society, media, and labor. Cambodia remains an essential partner to the United States as we work to achieve a shared vision for a free and open, prosperous, and secure Indo-Pacific region. 

    As part of the U.S. government’s commitment to strengthening agriculture and food systems, Administrator Power highlighted a new Food for Progress award of more than $29 million from the U.S. Department of Agriculture. This funding will help Cambodia improve implementation and development of food safety regulations by improving post-harvest handling of soybean meal, increasing adoption of climate smart technologies, providing training on best food safety practices, and strengthening market linkages. Under the Mekong-US Partnership, USAID will also support new efforts to conserve the rich biodiversity of the lower Mekong River basin, which is home to more than 1,000 species of fish but increasingly threatened by the effects of climate change and infrastructure development. Underscoring the strong U.S. commitment to protecting biodiversity, USAID will extend and expand for the next five years its work with the government and local communities in Cambodia to conserve and sustain the wonders of the Mekong, as well as work with other countries of the lower Basin. 

    In a meeting with members of Cambodian civil society, Administrator Power also announced more than $6 million in new USAID funding for civil society, media, and labor in support of Cambodia’s constitutional commitments to democratic rule, respect for human rights, and support for civil society. Additionally, Administrator Power announced $3 million in funding from the U.S. Department of Labor to increase collaboration and partnerships between and among persons with disabilities. This funding will help address the prevalence of child labor, forced labor, and human trafficking among persons with disabilities and reduce barriers that impede their access to decent work. USAID will also continue to support Cambodian returnees from the United States as they reintegrate into Cambodian society and establish stable, constructive, and independent lives. 

    MIL OSI USA News

  • MIL-OSI USA: RI Department of State to Host ‘Spooky State House’ on October 29

    Source: US State of Rhode Island

    PROVIDENCE, RI � Friendly frights, ghost stories, and lots of Halloween treats will soon return to the Rhode Island State House!

    This year’s Spooky State House will take place on Tuesday, October 29. Trick-or-treaters are welcome to stop by the Rhode Island State House (82 Smith Street, Providence) between 5:30 p.m. and 7 p.m.

    Those who dare to brave the halls of the Spooky State House will be greeted by decorations and treats from the offices of Secretary of State Gregg M. Amore, Governor Dan McKee, Lieutenant Governor Sabina Matos, Attorney General Peter F. Neronha, General Treasurer James A. Diossa, the Rhode Island Senate, and the Rhode Island House of Representatives.

    Costumes are encouraged and admission is free. This is a family-friendly event; all ages are welcome. Attendees are encouraged to bring a non-perishable food item for the Rhode Island Community Food Bank.

    More information is available through the Facebook event: https://www.facebook.com/share/nJ6hFxaVBNweY4XP/

    RSVPs are not required.

    ###

    MIL OSI USA News

  • MIL-OSI: South Plains Financial, Inc. Reports Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LUBBOCK, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended September 30, 2024.

    Third Quarter 2024 Highlights

    • Net income for the third quarter of 2024 was $11.2 million, compared to $11.1 million for the second quarter of 2024 and $13.5 million for the third quarter of 2023.
    • Diluted earnings per share for the third quarter of 2024 was $0.66, compared to $0.66 for the second quarter of 2024 and $0.78 for the third quarter of 2023.
    • Average cost of deposits for the third quarter of 2024 was 247 basis points, compared to 243 basis points for the second quarter of 2024 and 207 basis points for the third quarter of 2023.
    • Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023.
    • Nonperforming assets to total assets were 0.59% at September 30, 2024, compared to 0.57% at June 30, 2024 and 0.12% at September 30, 2023.
    • Return on average assets for the third quarter of 2024 was 1.05% annualized, compared to 1.07% annualized for the second quarter of 2024 and 1.27% annualized for the third quarter of 2023.
    • Tangible book value (non-GAAP) per share was $25.75 as of September 30, 2024, compared to $24.15 as of June 30, 2024 and $21.07 as of September 30, 2023.
    • The consolidated total risk-based capital ratio, Common Equity Tier 1 risk-based capital ratio, and Tier 1 leverage ratio at September 30, 2024 were 17.61%, 13.25%, and 11.76%, respectively. These ratios significantly exceeded the minimum regulatory levels necessary to be deemed “well-capitalized”.

    Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “I’m pleased with our third quarter results, which I believe demonstrate that the Bank is performing at a high level. We remain well capitalized and focused on managing our loan portfolio as the credit environment continues to normalize. Against this backdrop, we are maintaining our credit discipline and not stretching to chase loan growth. We are also building liquidity as we expect the Federal Reserve to continue reducing their market interest rate to stimulate economic growth looking to the year ahead. Importantly, we are seeing a level of optimism from our customers that we have not seen over the last seven to eight quarters and our new business production pipeline is the strongest that it has been in more than two years. Looking forward, we remain confident in the credit profile of our loan portfolio and are cautiously optimistic that we will see loan growth accelerate in the quarters ahead. Additionally, we are beginning to see deposit cost pressures ease, which we expect will be supportive of our net interest margin as well as continued deposit growth.”

    Results of Operations, Quarter Ended September 30, 2024

    Net Interest Income

    Net interest income was $37.3 million for the third quarter of 2024, compared to $35.9 million for the second quarter of 2024 and $35.7 million for the third quarter of 2023. Net interest margin, calculated on a tax-equivalent basis, was 3.65% for the third quarter of 2024, compared to 3.63% for the second quarter of 2024 and 3.52% for the third quarter of 2023. The average yield on loans was 6.68% for the third quarter of 2024, compared to 6.60% for the second quarter of 2024 and 6.10% for the third quarter of 2023. The average cost of deposits was 247 basis points for the third quarter of 2024, which is 4 basis points higher than the second quarter of 2024 and 40 basis points higher than the third quarter of 2023.

    Interest income was $61.6 million for the third quarter of 2024, compared to $59.2 million for the second quarter of 2024 and $56.5 million for the third quarter of 2023. Interest income increased $2.4 million in the third quarter of 2024 from the second quarter of 2024, which was primarily comprised of an increase of $934 thousand in loan interest income and an increase of $1.5 million in interest income on other interest-earning assets. The growth in loan interest income was due to a rise of 8 basis points in the yield on loans, partially offset by a decrease in average loans of $12.7 million. The increase in interest income on other interest-earning assets was predominately a result of increased liquidity from growth in deposits and a net decrease in loans during the third quarter. Interest income increased $5.1 million in the third quarter of 2024 compared to the third quarter of 2023. This increase was primarily due to an increase of average loans of $64.2 million and higher market interest rates during the period, resulting in growth of $5.3 million in loan interest income.

    Interest expense was $24.3 million for the third quarter of 2024, compared to $23.3 million for the second quarter of 2024 and $20.8 million for the third quarter of 2023. Interest expense increased $1.0 million compared to the second quarter of 2024 and increased $3.5 million compared to the third quarter of 2023. The $1.0 million increase was primarily as a result of growth in average interest-bearing deposits of $64.4 million. The $3.5 million increase was primarily as a result of growth in average interest-bearing deposits of $111.2 million and a 43 basis point increase in the cost of interest-bearing liabilities.

    Noninterest Income and Noninterest Expense

    Noninterest income was $10.6 million for the third quarter of 2024, compared to $12.7 million for the second quarter of 2024 and $12.3 million for the third quarter of 2023. The decrease from the second quarter of 2024 was primarily due to a decrease of $1.5 million in mortgage banking revenues, mainly from a decrease of $1.4 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Additionally, there was a decrease of $750 thousand in bank card services and interchange revenue mainly as a result of incentives received during the second quarter of 2024 and a decrease of $315 thousand in income from investments in Small Business Investment Companies. The decrease in noninterest income for the third quarter of 2024 as compared to the third quarter of 2023 was primarily due to a decrease of $2.7 million in mortgage banking activities revenue mainly from a decline of $2.7 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value declined in the third quarter of 2024. Further, there was approximately $700 thousand in insurance proceeds received for property damage in the third quarter of 2024, which affected other noninterest income in both period comparisons.

    Noninterest expense was $33.1 million for the third quarter of 2024, compared to $32.6 million for the second quarter of 2024 and $31.5 million for the third quarter of 2023. The $556 thousand increase from the second quarter of 2024 was largely the result of a rise of $226 thousand in net occupancy expenses, primarily from increased utilities, growth of $155 thousand in marketing and development expenses, and smaller increases in other noninterest expenses – including operational and fraud losses, losses on disposal of fixed assets, settlements, and charitable donations. These increases were partially offset by a decrease of $432 thousand in personnel costs as there was an additional $350 thousand in accrued expense in the second quarter related to incentive-based compensation. The increase in noninterest expense for the third quarter of 2024 as compared to the third quarter of 2023 was largely the result of an increase of $274 thousand in IT and data services related to the Company’s cloud project, an increase of $247 thousand in professional services mainly from legal expenses, and smaller increases in other noninterest expenses – including losses on disposal of fixed assets, settlements, and charitable donations.

    Loan Portfolio and Composition

    Loans held for investment were $3.04 billion as of September 30, 2024, compared to $3.09 billion as of June 30, 2024 and $2.99 billion as of September 30, 2023. The $56.9 million, or 1.8%, decrease during the third quarter of 2024 as compared to the second quarter of 2024 occurred primarily as a result of the expected payoff of a $16 million short-term bridge note that was originated in the second quarter of 2024, the early payoff of a $17 million residential land development loan, and an $18 million decrease in consumer auto loans. As of September 30, 2024, loans held for investment increased $43.8 million, or 1.5%, from September 30, 2023, primarily attributable to strong organic loan growth, occurring mainly in multi-family property loans, direct-energy loans, and single-family property loans, partially offset by decreases in consumer auto loans and construction, land, and development loans.

    Deposits and Borrowings

    Deposits totaled $3.72 billion as of September 30, 2024, compared to $3.62 billion as of June 30, 2024 and $3.62 billion as of September 30, 2023. Deposits increased by $94.8 million, or 2.6%, in the third quarter of 2024 from June 30, 2024. As of September 30, 2024, deposits increased $98.7 million, or 2.7%, from September 30, 2023. Noninterest-bearing deposits were $998.5 million as of September 30, 2024, compared to $951.6 million as of June 30, 2024 and $1.05 billion as of September 30, 2023. Noninterest-bearing deposits represented 26.9% of total deposits as of September 30, 2024. The quarterly change in total deposits was mainly due to organic growth in both noninterest-bearing and interest-bearing deposits. The year-over-year increase in total deposits was primarily the result of organic growth in interest-bearing deposits, given the overall focus in the banking industry on improving liquidity, partially offset by a decline in noninterest-bearing deposits.

    Asset Quality

    The Company recorded a provision for credit losses in the third quarter of 2024 of $495 thousand, compared to $1.8 million in the second quarter of 2024 and a negative provision of $700 thousand in the third quarter of 2023. The provision during the third quarter of 2024 was largely attributable to net charge-off activity, partially offset by decreased loan balances.

    The ratio of allowance for credit losses to loans held for investment was 1.41% as of September 30, 2024, compared to 1.40% as of June 30, 2024 and 1.41% as of September 30, 2023.

    The ratio of nonperforming assets to total assets was 0.59% as of September 30, 2024, compared to 0.57% as of June 30, 2024 and 0.12% as of September 30, 2023. The previously disclosed $20.0 million multi-family property credit, which was placed on nonaccrual status in the second quarter of 2024 after the maturity date was accelerated, was subsequently modified during the third quarter. The modification included more stringent credit metrics. Although the loan remains in nonaccrual status, the loan continues to pay as agreed and is showing improving credit trends. Annualized net charge-offs were 0.11% for the third quarter of 2024, compared to 0.10% for the second quarter of 2024 and 0.05% for the third quarter of 2023.

    Capital

    Book value per share increased to $27.04 at September 30, 2024, compared to $25.45 at June 30, 2024. The change was primarily driven by $8.9 million of net income after dividends paid and an increase in accumulated other comprehensive income (“AOCI”) of $16.6 million. The increase in AOCI was attributed to the after-tax increase in fair value of our available for sale securities, net of fair value hedges, as a result of decreases in long-term market interest rates during the period. Tangible common equity to tangible assets (non-GAAP) increased 33 basis points to 9.77% in the third quarter of 2024.

    Conference Call

    South Plains will host a conference call to discuss its third quarter 2024 financial results today, October 23, 2024, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

    A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13749147. The replay will be available until November 6, 2024.

    About South Plains Financial, Inc.

    South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

    We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

    A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

    Available Information

    The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

    The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to the current elevated interest rate environment or future reductions in interest rates and a resulting decline in net interest income; the resurgence of elevated levels of inflation or inflationary pressures, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; the impact of changes in U.S. presidential administrations or Congress; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

    Contact: Mikella Newsom, Chief Risk Officer and Secretary
      (866) 771-3347
      investors@city.bank
       

    Source: South Plains Financial, Inc.

     
    South Plains Financial, Inc.
    Consolidated Financial Highlights – (Unaudited)
    (Dollars in thousands, except share data)
     
      As of and for the quarter ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Selected Income Statement Data:                            
    Interest income $ 61,640     $ 59,208     $ 58,727     $ 57,236     $ 56,528  
    Interest expense   24,346       23,320       23,359       22,074       20,839  
    Net interest income   37,294       35,888       35,368       35,162       35,689  
    Provision for credit losses   495       1,775       830       600       (700 )
    Noninterest income   10,635       12,709       11,409       9,146       12,277  
    Noninterest expense   33,128       32,572       31,930       30,597       31,489  
    Income tax expense   3,094       3,116       3,143       2,787       3,683  
    Net income   11,212       11,134       10,874       10,324       13,494  
    Per Share Data (Common Stock):                            
    Net earnings, basic $ 0.68     $ 0.68     $ 0.66     $ 0.63     $ 0.80  
    Net earnings, diluted   0.66       0.66       0.64       0.61       0.78  
    Cash dividends declared and paid   0.14       0.14       0.13       0.13       0.13  
    Book value   27.04       25.45       24.87       24.80       22.39  
    Tangible book value (non-GAAP)   25.75       24.15       23.56       23.47       21.07  
    Weighted average shares outstanding, basic   16,386,079       16,425,360       16,429,919       16,443,908       16,842,594  
    Weighted average shares outstanding, dilutive   17,056,959       16,932,077       16,938,857       17,008,892       17,354,182  
    Shares outstanding at end of period   16,386,627       16,424,021       16,431,755       16,417,099       16,600,442  
    Selected Period End Balance Sheet Data:                            
    Cash and cash equivalents $ 471,167     $ 298,006     $ 371,939     $ 330,158     $ 352,424  
    Investment securities   606,889       591,031       599,869       622,762       584,969  
    Total loans held for investment   3,037,375       3,094,273       3,011,799       3,014,153       2,993,563  
    Allowance for credit losses   42,886       43,173       42,174       42,356       42,075  
    Total assets   4,337,659       4,220,936       4,218,993       4,204,793       4,186,440  
    Interest-bearing deposits   2,720,880       2,672,948       2,664,397       2,651,952       2,574,361  
    Noninterest-bearing deposits   998,480       951,565       974,174       974,201       1,046,253  
    Total deposits   3,719,360       3,624,513       3,638,571       3,626,153       3,620,614  
    Borrowings   110,307       110,261       110,214       110,168       122,493  
    Total stockholders’ equity   443,122       417,985       408,712       407,114       371,716  
    Summary Performance Ratios:                            
    Return on average assets (annualized)   1.05 %     1.07 %     1.04 %     0.99 %     1.27 %
    Return on average equity (annualized)   10.36 %     10.83 %     10.72 %     10.52 %     14.01 %
    Net interest margin (1)   3.65 %     3.63 %     3.56 %     3.52 %     3.52 %
    Yield on loans   6.68 %     6.60 %     6.53 %     6.29 %     6.10 %
    Cost of interest-bearing deposits   3.36 %     3.33 %     3.27 %     3.14 %     2.93 %
    Efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.34 %
    Summary Credit Quality Data:                            
    Nonperforming loans $ 24,693     $ 23,452     $ 3,380     $ 5,178     $ 4,783  
    Nonperforming loans to total loans held for investment   0.81 %     0.76 %     0.11 %     0.17 %     0.16 %
    Other real estate owned   973       755       862       912       242  
    Nonperforming assets to total assets   0.59 %     0.57 %     0.10 %     0.14 %     0.12 %
    Allowance for credit losses to total loans held for investment   1.41 %     1.40 %     1.40 %     1.41 %     1.41 %
    Net charge-offs to average loans outstanding (annualized)   0.11 %     0.10 %     0.13 %     0.08 %     0.05 %
                                           
      As of and for the quarter ended
      September 30
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Capital Ratios:                            
    Total stockholders’ equity to total assets   10.22 %     9.90 %     9.69 %     9.68 %     8.88 %
    Tangible common equity to tangible assets (non-GAAP)   9.77 %     9.44 %     9.22 %     9.21 %     8.40 %
    Common equity tier 1 to risk-weighted assets   13.25 %     12.61 %     12.67 %     12.41 %     12.19 %
    Tier 1 capital to average assets   11.76 %     11.81 %     11.51 %     11.33 %     11.13 %
    Total capital to risk-weighted assets   17.61 %     16.86 %     17.00 %     16.74 %     16.82 %

    (1)   Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Three Months Ended
      September 30, 2024   September 30, 2023
           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                  
    Loans $ 3,069,900   $ 51,513     6.68 %   $ 3,005,699   $ 46,250     6.10 %
    Debt securities – taxable   524,641     5,300     4.02 %     561,068     5,422     3.83 %
    Debt securities – nontaxable   154,806     1,016     2.61 %     159,577     1,054     2.62 %
    Other interest-bearing assets   336,887     4,032     4.76 %     325,201     4,031     4.92 %
                                       
    Total interest-earning assets   4,086,234     61,861     6.02 %     4,051,545     56,757     5.56 %
    Noninterest-earning assets   172,922                 177,216            
                                       
    Total assets $ 4,259,156               $ 4,228,761            
                                       
    Liabilities & stockholders’ equity                                  
    NOW, Savings, MMDA’s $ 2,247,299     18,143     3.21 %   $ 2,223,014     16,061     2.87 %
    Time deposits   431,307     4,510     4.16 %     344,395     2,904     3.35 %
    Short-term borrowings   3         0.00 %     3         0.00 %
    Notes payable & other long-term borrowings           0.00 %             0.00 %
    Subordinated debt   63,891     835     5.20 %     76,077     1,012     5.28 %
    Junior subordinated deferrable interest debentures   46,393     858     7.36 %     46,393     862     7.37 %
                                       
    Total interest-bearing liabilities   2,788,893     24,346     3.47 %     2,689,882     20,839     3.07 %
    Demand deposits   976,048                 1,071,175            
    Other liabilities   63,661                 85,713            
    Stockholders’ equity   430,554                 381,991            
                                       
    Total liabilities & stockholders’ equity $ 4,259,156               $ 4,228,761            
                                       
    Net interest income       $ 37,515               $ 35,918      
    Net interest margin (2)               3.65 %                 3.52 %
                                           

    (1)   Average loan balances include nonaccrual loans and loans held for sale.
    (2)   Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)
     
      For the Nine Months Ended
      September 30, 2024   September 30, 2023
                           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                  
    Loans $ 3,055,679   $ 151,031     6.60 %   $ 2,892,887   $ 128,724     5.95 %
    Debt securities – taxable   537,425     16,096     4.00 %     574,159     16,027     3.73 %
    Debt securities – nontaxable   155,489     3,062     2.63 %     194,492     3,870     2.66 %
    Other interest-bearing assets   287,192     10,052     4.68 %     212,384     7,010     4.41 %
                                       
    Total interest-earning assets   4,035,785     180,241     5.97 %     3,873,922     155,631     5.37 %
    Noninterest-earning assets   176,230                 183,149            
                                       
    Total assets $ 4,212,015               $ 4,057,071            
                                       
    Liabilities & stockholders’ equity                                  
    NOW, Savings, MMDA’s $ 2,251,569     53,792     3.19 %   $ 2,090,250     38,529     2.46 %
    Time deposits   399,646     12,153     4.06 %     309,250     6,239     2.70 %
    Short-term borrowings   3         0.00 %     111     5     6.02 %
    Notes payable & other long-term borrowings           0.00 %             0.00 %
    Subordinated debt   63,845     2,505     5.24 %     76,031     3,037     5.34 %
    Junior subordinated deferrable interest debentures   46,393     2,575     7.41 %     46,393     2,402     6.92 %
                                       
    Total interest-bearing liabilities   2,761,456     71,025     3.44 %     2,522,035     50,212     2.66 %
    Demand deposits   964,829                 1,085,345            
    Other liabilities   68,458                 74,865            
    Stockholders’ equity   417,272                 374,826            
                                       
    Total liabilities & stockholders’ equity $ 4,212,015               $ 4,057,071            
                                       
    Net interest income       $ 109,216               $ 105,419      
    Net interest margin (2)               3.61 %                 3.64 %
                                           

    (1)   Average loan balances include nonaccrual loans and loans held for sale.
    (2)   Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

     
    South Plains Financial, Inc.
    Consolidated Balance Sheets
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Assets          
    Cash and due from banks $ 60,863     $ 62,821  
    Interest-bearing deposits in banks   410,304       267,337  
    Securities available for sale   606,889       622,762  
    Loans held for sale   11,389       14,499  
    Loans held for investment   3,037,375       3,014,153  
    Less:  Allowance for credit losses   (42,886 )     (42,356 )
    Net loans held for investment   2,994,489       2,971,797  
    Premises and equipment, net   53,323       55,070  
    Goodwill   19,315       19,315  
    Intangible assets   1,882       2,429  
    Mortgage servicing rights   24,573       26,569  
    Other assets   154,632       162,194  
    Total assets $ 4,337,659     $ 4,204,793  
               
    Liabilities and Stockholders’ Equity          
    Noninterest-bearing deposits $ 998,480     $ 974,201  
    Interest-bearing deposits   2,720,880       2,651,952  
    Total deposits   3,719,360       3,626,153  
    Subordinated debt   63,914       63,775  
    Junior subordinated deferrable interest debentures   46,393       46,393  
    Other liabilities   64,870       61,358  
    Total liabilities   3,894,537       3,797,679  
    Stockholders’ Equity          
    Common stock   16,386       16,417  
    Additional paid-in capital   97,367       97,107  
    Retained earnings   371,782       345,264  
    Accumulated other comprehensive income (loss)   (42,413 )     (51,674 )
    Total stockholders’ equity   443,122       407,114  
    Total liabilities and stockholders’ equity $ 4,337,659     $ 4,204,793  
     
    South Plains Financial, Inc.
    Consolidated Statements of Income
    (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended   Nine Months Ended
      September 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
                           
    Interest income:                      
    Loans, including fees $ 51,505   $ 46,242     $ 151,008   $ 128,703
    Other   10,135     10,286       28,567     26,094
    Total interest income   61,640     56,528       179,575     154,797
    Interest expense:                      
    Deposits   22,653     18,965       65,945     44,768
    Subordinated debt   835     1,012       2,505     3,037
    Junior subordinated deferrable interest debentures   858     862       2,575     2,402
    Other                 5
    Total interest expense   24,346     20,839       71,025     50,212
    Net interest income   37,294     35,689       108,550     104,585
    Provision for credit losses   495     (700 )     3,100     4,010
    Net interest income after provision for credit losses   36,799     36,389       105,450     100,575
    Noninterest income:                      
    Service charges on deposits   2,023     1,840       5,785     5,286
    Income from insurance activities   28     30       92     1,478
    Mortgage banking activities   1,890     4,602       9,232     12,146
    Bank card services and interchange fees   3,302     3,157       10,415     10,156
    Gain on sale of subsidiary       290           33,778
    Other   3,392     2,358       9,229     7,236
    Total noninterest income   10,635     12,277       34,753     70,080
    Noninterest expense:                      
    Salaries and employee benefits   18,767     18,709       56,954     61,400
    Net occupancy expense   4,255     4,111       12,204     12,246
    Professional services   1,807     1,560       5,028     4,924
    Marketing and development   1,015     853       2,629     2,573
    Other   7,284     6,256       20,815     23,206
    Total noninterest expense   33,128     31,489       97,630     104,349
    Income before income taxes   14,306     17,177       42,573     66,306
    Income tax expense   3,094     3,683       9,353     13,885
    Net income $ 11,212   $ 13,494     $ 33,220   $ 52,421
     
    South Plains Financial, Inc.
    Loan Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Loans:          
    Commercial Real Estate $ 1,120,448   $ 1,081,056
    Commercial – Specialized   406,255     372,376
    Commercial – General   526,448     517,361
    Consumer:          
    1-4 Family Residential   562,401     534,731
    Auto Loans   253,509     305,271
    Other Consumer   65,789     74,168
    Construction   102,525     129,190
    Total loans held for investment $ 3,037,375   $ 3,014,153
     
    South Plains Financial, Inc.
    Deposit Composition
    (Unaudited)
    (Dollars in thousands)
     
      As of
      September 30,
    2024
      December 31,
    2023
               
    Deposits:          
    Noninterest-bearing deposits $ 998,480   $ 974,201
    NOW & other transaction accounts   496,176     562,066
    MMDA & other savings   1,780,337     1,722,170
    Time deposits   444,367     367,716
    Total deposits $ 3,719,360   $ 3,626,153
     
    South Plains Financial, Inc.
    Reconciliation of Non-GAAP Financial Measures (Unaudited)
    (Dollars in thousands)
     
      For the quarter ended
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Pre-tax, pre-provision income                                    
    Net income $ 11,212     $ 11,134     $ 10,874     $ 10,324     $ 13,494  
    Income tax expense   3,094       3,116       3,143       2,787       3,683  
    Provision for credit losses   495       1,775       830       600       (700 )
    Pre-tax, pre-provision income $ 14,801     $ 16,025     $ 14,847     $ 13,711     $ 16,477  
    Efficiency Ratio                            
    Noninterest expense $ 33,128     $ 32,572     $ 31,930     $ 30,597     $ 31,489  
                                 
    Net interest income   37,294       35,888       35,368       35,162       35,689  
    Tax equivalent yield adjustment   221       223       223       225       229  
    Noninterest income   10,635       12,709       11,409       9,146       12,277  
    Total income   48,150       48,820       47,000       44,533       48,195  
                                 
    Efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.34 %
                                 
    Noninterest expense $ 33,128     $ 32,572     $ 31,930     $ 30,597     $ 31,489  
    Less: Subsidiary transaction and related expenses                            
    Less:  net loss on sale of securities                            
    Adjusted noninterest expense   33,128       32,572       31,930       30,597       31,489  
                                 
    Total income   48,150       48,820       47,000       44,533       48,195  
    Less:  gain on sale of subsidiary                           (290 )
    Adjusted total income   48,150       48,820       47,000       44,533       47,905  
                                 
    Adjusted efficiency ratio   68.80 %     66.72 %     67.94 %     68.71 %     65.73 %
      As of
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Tangible common equity                            
    Total common stockholders’ equity $ 443,122     $ 417,985     $ 408,712     $ 407,114     $ 371,716  
    Less:  goodwill and other intangibles   (21,197 )     (21,379 )     (21,562 )     (21,744 )     (21,936 )
                                 
    Tangible common equity $ 421,925     $ 396,606     $ 387,150     $ 385,370     $ 349,780  
                                 
    Tangible assets                            
    Total assets $ 4,337,659     $ 4,220,936     $ 4,218,993     $ 4,204,793     $ 4,186,440  
    Less:  goodwill and other intangibles   (21,197 )     (21,379 )     (21,562 )     (21,744 )     (21,936 )
                                 
    Tangible assets $ 4,316,462     $ 4,199,557     $ 4,197,431     $ 4,183,049     $ 4,164,504  
                                 
    Shares outstanding   16,386,627       16,424,021       16,431,755       16,417,099       16,600,442  
                                 
    Total stockholders’ equity to total assets   10.22 %     9.90 %     9.69 %     9.68 %     8.88 %
    Tangible common equity to tangible assets   9.77 %     9.44 %     9.22 %     9.21 %     8.40 %
    Book value per share $ 27.04     $ 25.45     $ 24.87     $ 24.80     $ 22.39  
    Tangible book value per share $ 25.75     $ 24.15     $ 23.56     $ 23.47     $ 21.07  

    The MIL Network

  • MIL-OSI USA: ICYMI—Hagerty Joins Mornings With Maria on Fox Business to Discuss BRICS Summit, Biden-Harris Emboldening China, Stablecoin Bill

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    NEW YORK CITY—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking and Foreign Relations Committees and former U.S. Ambassador to Japan, yesterday joined Mornings With Maria on Fox Business to discuss yesterday’s BRICS Summit, the Biden-Harris Administration’s weakness towards China, and his stablecoin legislation to establish a clear regulatory framework for the regulation and supervision of stablecoin issuers.

    *Click the photo above or here to watch*
    Partial Transcript
     Hagerty on the BRICS Summit: “Were it not for the tremendous leadership void that exists today because of America’s exit from the international stage, we wouldn’t be seeing this happen. And under President [Donald] Trump, this would have never happened. They’ve expanded BRICS now to 32 nations, as you’ve said. This is all about Vladimir Putin trying to find a way to get around the type of sanctions regime that we will come back and put in place once President Trump is back in office. Interestingly, I noticed that the UN Secretary General Gutierrez is going to be there in Russia for this event. You know, were this event held anywhere else, Gutierrez, I think, would be obligated to enforce the arrest warrant that his own international criminal court has put out for Putin. It’s just shocking to me that these nations would step up and participate in this, and that Gutierrez himself would be involved in a situation where Iran is actually going to be brought into this group. It’s amazing. The only common bond, it seems, is that America’s not part of it, and they want to demonstrate their pushback. And the fact that the UN is engaged in this as well [is] really quite shocking and disturbing to me as it should be to all of us.”
    Hagerty on China’s economic leverage against BRICS nations: “You mentioned China; that is another common bond here: China’s economic ties and leverage over these countries with the Belt and Road Initiative and the fact that they’re buying oil from Iran and from Russia. That is another common bond that these guys share. But if you think about how the Harris Administration would respond, look no further than what they did with the spy balloon that they allowed to fly over the entirety of the United States of America. And then send four cabinet members over to kowtow, just to beg them to come to San Francisco for a meeting, I’m very concerned. Americans should be deeply concerned what would happen and should Kamala Harris be put in a position to stand up to Xi. I’ve been with President Trump when he’s met with Xi. Xi respects Trump. President Trump will bring respect and order back to these types of relationships. I cannot imagine how Kamala Harris would stand up to that type of pressure.”
    Hagerty on Obama’s former AG suing the Pentagon on behalf of a Chinse company: “This is exactly why President Trump has said we must drain the swamp. This is just another example of the revolving door. And the fact is that the first time this DJI was cited was back in 2017 when President Trump was in office—the Army took them down then—there’s no way that Loretta Lynch would be bringing the suit under the Trump Administration. But again, they’re trying to squeeze everything in that they can in the last days, the waning days of this Administration. You’ve got to ask yourself: who are they working for? Because every one of the foreign policies that Biden and Harris have pursued basically make China the net winner. We’ve got to stop this […] Ever since 2018, that’s been the case, because that’s what the Chinese National Security law says. Chinese companies that collect data anywhere in the world need to and have to expose that data to the Chinese intelligence services when asked. So, of course, that’s what it means. That’s the vulnerability that was seen back in the Trump Administration; that seems to be something that Loretta Lynch wants to undo and make these Chinese companies have access to the most sensitive data that our U.S. military would pick up. It’s unconscionable that she’d do this […] Barack Obama’s top law enforcement officer, the former Attorney General, is the one defending this Chinese company trying to get them off of this list, when she knows the exposure [and] the national security risk that would pose to America. It is just shocking.”
    Hagerty on his stablecoin legislation to establish clear regulatory framework: “As you mentioned, this builds upon some excellent work that was done in the House of Representatives. I’ve come in and made some adjustments that I think it’ll make it easier to get through both bodies [in Congress]. The impact of this, though, actually gets back to the beginning of the story that you and I talked about. You think about the efforts that Vladimir Putin and these BRICS nations undertaking to get around the United States as the reserve currency of the world. This will actually strengthen our posture as a reserve currency. It will increase demand, not only for U.S. treasuries, but also the stablecoins will increase demand for U.S. dollars on a global basis. We need the proper regulatory framework in place here in America—we need legal certainty—the Biden and Harris Administration have done everything they can to destroy that sort of legal certainty. This will begin to chip away at the Democrats’ war on cryptocurrency and put us back in the driver’s seat when it comes to maintaining the reserve currency status that the dollar has enjoyed and should continue to enjoy […] The assumption is very clear that this legislation will move through and be ripe for a new Administration.”

    MIL OSI USA News

  • MIL-OSI: Horizon Bancorp, Inc. Reports Third Quarter 2024 Results, Including EPS of $0.41 and Continued Profitability Improvement, as well as Accretive Balance Sheet Initiatives

    Source: GlobeNewswire (MIL-OSI)

    MICHIGAN CITY, Ind., Oct. 23, 2024 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three and nine months ended September 30, 2024.

    Net income for the three months ended September 30, 2024 was $18.2 million, or $0.41 per diluted share, compared to net income of $14.1 million, or $0.32, for the second quarter of 2024 and compared to net income of $16.2 million, or $0.37 per diluted share, for the third quarter of 2023.

    Net income for the nine months ended September 30, 2024 was $46.3 million, or $1.05 per diluted share, compared to net income of $53.2 million, or $1.21, for the nine months ended September 30, 2023.

    Third Quarter 2024 Highlights

    • Net interest income increased for the fourth consecutive quarter to $46.9 million, compared to $45.3 million in the linked quarter of 2024. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, expanded for the fourth consecutive quarter to 2.66%, compared to 2.64% in the linked quarter of 2024.
    • Total loans held for investment (“HFI”) were $4.8 billion at September 30, 2024, relatively unchanged from June 30, 2024 balances. However, consistent with the Company’s stated growth strategy, the commercial portfolio showed continued organic growth momentum during the quarter, which was offset with planned run-off of lower-yielding indirect auto loans in the consumer loan portfolio. 
    • Positive deposit growth of 1.7% during the quarter, to $5.7 billion at period end. The quarter was highlighted by stable non-interest bearing deposit balances and growth in core relationship consumer and commercial portfolios. 
    • Credit quality remains strong, with annualized net charge offs of 0.03% of average loans during the third quarter. Non-performing assets to total assets of 0.32% remains well within expected ranges, with no material change in the loss outlook. Provision for loan losses of $1.0 million reflects continued positive credit performance.

    “Horizon continues to execute well on its key strategic initiatives of consistently improving our operating performance through a more productive balance sheet, growth in non-interest income and continued disciplined in our operating model. As a result, we are optimistic on the positive momentum of the franchise through year-end 2024 and into 2025. During the quarter, our commercial team was able to deliver another quarter of quality loan growth, even coming off a strong end to the second quarter. The strength of Horizon’s core deposit franchise showed solid performance, and our credit metrics remain well managed. These efforts led to a third consecutive quarter of sequential growth in pre-tax pre-provision income,” President and Chief Executive Officer Thomas M. Prame said. “Importantly, we continue our efforts to optimize our business model, and are pleased to announce the repositioning of a portion of our securities portfolio and the intended sale of our mortgage warehouse business during the fourth quarter. These shareholder accretive actions are expected to yield sustainable improvement in the profitability of our business that will be evident in the fourth quarter, and positively impact Horizon’s financial performance in 2025.”

    _________________________
    1
    Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Accretive Fourth Quarter 2024 Strategic Actions

    Horizon announced strategic actions taking place in the fourth quarter of 2024, which are designed to simplify its business, strengthen the balance sheet and improve long-term structural profitability. In October, the Company completed the repositioning of about $325 million of available-for-sale securities. Additionally, the Company has signed a letter of intent to sell its mortgage warehouse business, which is expected to generate a gain-on-sale. Details on these actions, the use of proceeds, and the expected financial impact are available in the Company’s third quarter 2024 investor presentation published at investor.horizonbank.com.

     
    Financial Highlights
    (Dollars in Thousands Except Share and Per Share Data and Ratios, Unaudited)
      Three Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,
      2024   2024   2024   2023   2023
    Income statement:                  
    Net interest income $ 46,910     $ 45,279     $ 43,288     $ 42,257     $ 42,090  
    Credit loss expense   1,044       2,369       805       1,274       263  
    Non-interest income   11,511       10,485       9,929       (20,449 )     11,830  
    Non-interest expense   39,272       37,522       37,107       39,330       36,168  
    Income tax expense   (75 )     1,733       1,314       6,419       1,284  
    Net income $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205  
                       
    Per share data:                  
    Basic earnings per share $ 0.42     $ 0.32     $ 0.32     $ (0.58 )   $ 0.37  
    Diluted earnings per share   0.41       0.32       0.32       (0.58 )     0.37  
    Cash dividends declared per common share   0.16       0.16       0.16       0.16       0.16  
    Book value per common share   17.27       16.62       16.49       16.47       15.89  
    Market value – high   16.57       12.74       14.44       14.65       12.68  
    Market value – low   11.89       11.29       11.75       9.33       9.90  
    Weighted average shares outstanding – Basic   43,712,059       43,712,059       43,663,610       43,649,585       43,646,609  
    Weighted average shares outstanding – Diluted   44,112,321       43,987,187       43,874,036       43,649,585       43,796,069  
    Common shares outstanding (end of period)   43,712,059       43,712,059       43,726,380       43,652,063       43,648,501  
                       
    Key ratios:                  
    Return on average assets   0.92 %     0.73 %     0.72 %   (1.27)        %     0.81 %
    Return on average stockholders’ equity   9.80       7.83       7.76       (14.23 )     8.99  
    Total equity to total assets   9.52       9.18       9.18       9.06       8.71  
    Total loans to deposit ratio   83.92       85.70       82.78       78.01       76.52  
    Allowance for credit losses to HFI loans   1.10       1.08       1.09       1.13       1.14  
    Annualized net charge-offs of average total loans(1)   0.03       0.05       0.04       0.07       0.07  
    Efficiency ratio   67.22       67.29       69.73       180.35       67.08  
                       
    Key metrics (Non-GAAP)(2):                  
    Net FTE interest margin   2.66 %     2.64 %     2.50 %     2.43 %     2.41 %
    Return on average tangible common equity   12.65       10.18       10.11       (18.76 )     11.79  
    Tangible common equity to tangible assets   7.58       7.22       7.20       7.08       6.72  
    Tangible book value per common share $ 13.46     $ 12.80     $ 12.65     $ 12.60     $ 12.00  
                       
                       
    (1) Average total loans includes loans held for investment and held for sale.
    (2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
     

    Income Statement Highlights

    Net Interest Income

    Net interest income was $46.9 million in the third quarter of 2024, compared to $45.3 million in the second quarter of 2024, driven by net growth in average interest earning assets of $117.5 million and continued net FTE interest margin expansion during the quarter. Horizon’s net FTE interest margin1 was 2.66% for the third quarter of 2024, compared to 2.64% for the second quarter of 2024, attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward lower-cost deposit balances. Interest accretion from the fair value of acquired loans did not contribute significantly to the third quarter net interest income, or net FTE interest margin.

    Provision for Credit Losses

    During the third quarter of 2024, the Company recorded a provision for credit losses of $1.0 million. This compares to a provision for credit losses of $2.4 million during the second quarter of 2024, and $0.3 million during the third quarter of 2023. The decrease in the provision for credit losses during the third quarter of 2024 when compared with the second quarter of 2024 was primarily attributable to less total loan growth in the current quarter relative to the prior quarter.

    For the third quarter of 2024, the allowance for credit losses included net charge-offs of $0.4 million, or an annualized 0.03% of average loans outstanding, compared to net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding for the second quarter of 2024, and net charge-offs of $0.7 million, or an annualized 0.07% of average loans outstanding, in the third quarter of 2023.

    The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.10% at September 30, 2024, compared to 1.08% at June 30, 2024 and 1.14% at September 30, 2023.

    Non-Interest Income

    For the Quarter Ended September 30,   June 30,   March 31,   December 31,   September 30,
    (Dollars in Thousands) 2024
      2024
      2024
      2023   2023
    Non-interest Income                  
    Service charges on deposit accounts $ 3,320     $ 3,130     $ 3,214     $ 3,092     $ 3,086  
    Wire transfer fees   123       113       101       103       120  
    Interchange fees   3,511       3,826       3,109       3,224       3,186  
    Fiduciary activities   1,394       1,372       1,315       1,352       1,206  
    Gains (losses) on sale of investment securities                     (31,572 )      
    Gain on sale of mortgage loans   1,622       896       626       951       1,582  
    Mortgage servicing income net of impairment   412       450       439       724       631  
    Increase in cash value of bank owned life insurance   349       318       298       658       1,055  
    Other income   780       380       827       1,019       964  
    Total non-interest income $ 11,511     $ 10,485     $ 9,929     $ (20,449 )   $ 11,830  
                                           

    Total non-interest income was $11.5 million in the third quarter of 2024, compared to $10.5 million in the second quarter of 2024, due primarily to higher realized gains on sale of mortgage loans and increased other income.

    _________________________
    1
    Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Non-Interest Expense

    For the Quarter Ended September 30,   June 30,   March 31,   December 31,   September 30,
    (Dollars in Thousands) 2024
      2024
      2024
      2023
      2023
    Non-interest Expense                  
    Salaries and employee benefits $ 21,829     $ 20,583     $ 20,268     $ 21,877     $ 20,058  
    Net occupancy expenses   3,207       3,192       3,546       3,260       3,283  
    Data processing   2,977       2,579       2,464       2,942       2,999  
    Professional fees   676       714       607       772       707  
    Outside services and consultants   3,677       3,058       3,359       2,394       2,316  
    Loan expense   1,034       1,038       719       1,345       1,120  
    FDIC insurance expense   1,204       1,315       1,320       1,200       1,300  
    Core deposit intangible amortization   844       844       872       903       903  
    Other losses   297       515       16       508       188  
    Other expense   3,527       3,684       3,936       4,129       3,294  
    Total non-interest expense $ 39,272     $ 37,522     $ 37,107     $ 39,330     $ 36,168  
                                           

    Total non-interest expense was $39.3 million in the third quarter of 2024, compared with $37.5 million in the second quarter of 2024. The increase in non-interest expense during the third quarter of 2024 was primarily driven by a $1.2 million increase in salaries and employee benefits expense, which is partially attributable to a legacy benefits program expense, and a $0.6 million increase in outside services and consultants expense related to strategic initiatives.

    Income Taxes

    Horizon’s effective tax rate was -0.4% for the third quarter of 2024, as compared to 10.9% for the second quarter of 2024. The decrease in the effective tax rate during the third quarter was primarily due to an increase in net realizable tax credits for the current year, which reduced the Company’s estimated annual effective tax rate.

    Balance Sheet

    Total assets increased by $14.9 million, or 0.2%, to $7.93 billion as of September 30, 2024, from $7.91 billion as of June 30, 2024. The increase in total assets is primarily due to increases in federal funds sold of $79.5 million, or 230.6%, to $113.9 million as of September 30, 2024, compared to $34.5 million as of June 30, 2024. The increase in federal funds sold during the period was partially offset by a decrease in other assets of $46.6 million, or 28.1%, to $119.0 million as of September 30, 2024, from $165.7 million as of June 30, 2024.

    Total investment securities remained unchanged, at $2.4 billion as of September 30, 2024, compared to June 30, 2024, as the positive market impact to available for sale securities was offset by normal pay-downs and maturities. There were no purchases of investment securities during the third quarter of 2024.

    Total loans HFI and loans held for sale were relatively consistent at $4.8 billion as of September 30, 2024 compared to $4.8 billion as of June 30, 2024, as growth in commercial loans of $9.5 million were offset by a decline in consumer loans of $43.3 million.

    Total deposit balances increased by $96.9 million, or 1.7%, to $5.7 billion as of September 30, 2024 when compared to balances as of June 30, 2024. Non-interest bearing deposit balances were essentially unchanged during the quarter.

    Total borrowings decreased by $86.4 million, or 7.0%, to $1.1 billion as of September 30, 2024, primarily related to the repayment of a portion of Federal Home Loan Bank advances, when compared to balances as of June 30, 2024.

    Capital

    The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters:

    For the Quarter Ended September 30,   June 30,   March 31, December 31,
      2024*   2024   2024** 2023**
    Consolidated Capital Ratios            
    Total capital (to risk-weighted assets)   13.52 %     13.41 %     13.75 %   14.04 %
    Tier 1 capital (to risk-weighted assets)   11.70 %     11.59 %     11.89 %   12.13 %
    Common equity tier 1 capital (to risk-weighted assets)   10.74 %     10.63 %     10.89 %   11.11 %
    Tier 1 capital (to average assets)   9.01 %     9.02 %     8.91 %   8.61 %
    *Preliminary estimate – may be subject to change  
    **Prior periods were previously revised (see disclosure in Form 10-Q for the quarterly period ending June 30, 2024)  
       

    As of September 30, 2024, the ratio of total stockholders’ equity to total assets is 9.52%. Book value per common share was $17.27, increasing $0.65 during the third quarter of 2024.

    Tangible common equity1 totaled $588.5 million at September 30, 2024, and the ratio of tangible common equity to tangible assets1 was 7.58% at September 30, 2024, up from 7.22% at June 30, 2024. Tangible book value, which excludes intangible assets from total equity, per common share1 was $13.46, increasing $0.66 during the third quarter of 2024.

    Credit Quality

    As of September 30, 2024, total non-accrual loans increased by $5.3 million, or 29.0%, from June 30, 2024, to 0.49% of total loans HFI. Total non-performing assets increased $5.1 million, or 25.0%, to $25.6 million, compared to $20.5 million as of June 30, 2024. The ratio of non-performing assets to total assets increased to 0.32% compared to 0.26% as of June 30, 2024.

    As of September 30, 2024, net charge-offs decreased by $0.2 million to $0.4 million, compared to $0.6 million as of June 30, 2024 and remain just 0.03% annualized of average loans.

    _________________________
    1
    Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Earnings Conference Call

    As previously announced, Horizon will host a conference call to review its third quarter financial results and operating performance.

    Participants may access the live conference call on October 24, 2024 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

    A telephone replay of the call will be available approximately one hour after the end of the conference through November 1, 2024. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 9847279.

    About Horizon Bancorp, Inc.

    Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.9 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

    Use of Non-GAAP Financial Measures

    Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. We believe that this shows the impact of such events as acquisition-related purchase accounting adjustments and swap termination fees, among others we have identified in our reconciliations. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to the purchase accounting impacts and one-time costs of acquisitions and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

    Forward Looking Statements

    This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; macroeconomic conditions and their impact on Horizon and its customers; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

       
      Condensed Consolidated Statements of Income
      (Dollars in Thousands Except Per Share Data, Unaudited)
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,   September 30,   September 30,
      2024   2024
      2024
      2023   2023
      2024
      2023
    Interest Income                          
    Loans receivable $ 75,488     $ 71,880     $ 66,954     $ 65,583     $ 63,003     $ 214,322     $ 178,961  
    Investment securities – taxable   8,133       7,986       7,362       8,157       8,788       23,481       26,253  
    Investment securities – tax-exempt   6,310       6,377       6,451       6,767       7,002       19,138       21,617  
    Other   957       738       4,497       3,007       1,332       6,192       1,960  
    Total interest income   90,888       86,981       85,264       83,514       80,125       263,133       228,791  
    Interest Expense                          
    Deposits   30,787       28,447       27,990       27,376       24,704       87,224       58,481  
    Borrowed funds   11,131       11,213       11,930       11,765       11,224       34,274       30,713  
    Subordinated notes   830       829       831       870       880       2,490       2,641  
    Junior subordinated debentures issued to capital trusts   1,230       1,213       1,225       1,246       1,227       3,668       3,469  
    Total interest expense   43,978       41,702       41,976       41,257       38,035       127,656       95,304  
    Net Interest Income   46,910       45,279       43,288       42,257       42,090       135,477       133,487  
    Provision for loan losses   1,044       2,369       805       1,274       263       4,218       1,185  
    Net Interest Income after Provision for Loan Losses   45,866       42,910       42,483       40,983       41,827       131,259       132,302  
    Non-interest Income                          
    Service charges on deposit accounts   3,320       3,130       3,214       3,092       3,086       9,664       9,135  
    Wire transfer fees   123       113       101       103       120       337       345  
    Interchange fees   3,511       3,826       3,109       3,224       3,186       10,446       9,637  
    Fiduciary activities   1,394       1,372       1,315       1,352       1,206       4,081       3,728  
    Gains (losses) on sale of investment securities                     (31,572 )                 (480 )
    Gain on sale of mortgage loans   1,622       896       626       951       1,582       3,144       3,372  
    Mortgage servicing income net of impairment   412       450       439       724       631       1,301       1,984  
    Increase in cash value of bank owned life insurance   349       318       298       658       1,055       965       3,051  
    Other income   780       380       827       1,019       964       1,987       1,675  
    Total non-interest income   11,511       10,485       9,929       (20,449 )     11,830       31,925       32,447  
    Non-interest Expense                          
    Salaries and employee benefits   21,829       20,583       20,268       21,877       20,058       62,680       58,932  
    Net occupancy expenses   3,207       3,192       3,546       3,260       3,283       9,945       10,095  
    Data processing   2,977       2,579       2,464       2,942       2,999       8,020       8,684  
    Professional fees   676       714       607       772       707       1,997       1,873  
    Outside services and consultants   3,677       3,058       3,359       2,394       2,316       10,094       7,548  
    Loan expense   1,034       1,038       719       1,345       1,120       2,791       3,635  
    FDIC insurance expense   1,204       1,315       1,320       1,200       1,300       3,839       2,680  
    Core deposit intangible amortization   844       844       872       903       903       2,560       2,709  
    Other losses   297       515       16       508       188       828       543  
    Other expense   3,527       3,684       3,936       4,129       3,294       11,147       10,255  
    Total non-interest expense   39,272       37,522       37,107       39,330       36,168       113,901       106,954  
    Income /(Loss) Before Income Taxes   18,105       15,873       15,305       (18,796 )     17,489       49,283       57,795  
    Income tax expense   (75 )     1,733       1,314       6,419       1,284       2,972       4,599  
    Net Income /(Loss) $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205     $ 46,311     $ 53,196  
    Basic Earnings /(Loss) Per Share $ 0.42     $ 0.32     $ 0.32     $ (0.58 )   $ 0.37     $ 1.06     $ 1.22  
    Diluted Earnings/(Loss) Per Share   0.41       0.32       0.32       (0.58 )     0.37       1.05       1.21  
                                                           
      Condensed Consolidated Balance Sheets
      (Dollars in Thousands)
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Assets                  
    Interest earning assets                  
    Federal funds sold $ 113,912     $ 34,453     $ 161,704     $ 401,672     $ 71,576  
    Interest earning deposits   12,107       4,957       9,178       12,071       4,718  
    Interest earning time deposits   735       1,715       1,715       2,205       2,207  
    Federal Home Loan Bank stock   53,826       53,826       53,826       34,509       34,509  
    Investment securities, available for sale   541,170       527,054       535,319       547,251       865,168  
    Investment securities, held to maturity   1,888,379       1,904,281       1,925,725       1,945,638       1,966,483  
    Loans held for sale   2,069       2,440       922       1,418       2,828  
    Gross loans held for investment (HFI)   4,803,996       4,822,840       4,618,175       4,417,630       4,359,002  
    Total Interest earning assets   7,416,194       7,351,566       7,306,564       7,362,394       7,306,491  
    Non-interest earning assets                  
    Allowance for credit losses   (52,881 )     (52,215 )     (50,387 )     (50,029 )     (49,699 )
    Cash   108,815       106,691       100,206       112,772       98,843  
    Cash value of life insurance   37,115       36,773       36,455       36,157       149,212  
    Other assets   119,026       165,656       160,593       177,061       152,280  
    Goodwill   155,211       155,211       155,211       155,211       155,211  
    Other intangible assets   11,067       11,910       12,754       13,626       14,530  
    Premises and equipment, net   93,544       93,695       94,303       94,583       94,716  
    Interest receivable   39,366       43,240       40,008       38,710       37,850  
    Total non-interest earning assets   511,263       560,961       549,143       578,091       652,943  
    Total assets $ 7,927,457     $ 7,912,527     $ 7,855,707     $ 7,940,485     $ 7,959,434  
    Liabilities                  
    Savings and money market deposits $ 3,420,827     $ 3,364,726     $ 3,350,673     $ 3,369,149     $ 3,322,788  
    Time deposits   1,220,653       1,178,389       1,136,121       1,179,739       1,250,606  
    Borrowings   1,142,744       1,229,165       1,219,812       1,217,020       1,214,016  
    Repurchase agreements   122,399       128,169       139,309       136,030       142,494  
    Subordinated notes   55,703       55,668       55,634       55,543       59,007  
    Junior subordinated debentures issued to capital trusts   57,423       57,369       57,315       57,258       57,201  
    Total interest earning liabilities   6,019,749       6,013,486       5,958,864       6,014,739       6,046,112  
    Non-interest bearing deposits   1,085,535       1,087,040       1,093,076       1,116,005       1,126,703  
    Interest payable   11,400       11,240       7,853       22,249       16,281  
    Other liabilities   55,951       74,096       74,664       68,680       76,969  
    Total liabilities   7,172,635       7,185,862       7,134,457       7,221,673       7,266,065  
    Stockholders’ Equity                  
    Preferred stock                            
    Common stock                            
    Additional paid-in capital   358,453       357,673       356,599       356,400       355,478  
    Retained earnings   454,050       442,977       435,927       429,021       461,325  
    Accumulated other comprehensive income (loss)   (57,681 )     (73,985 )     (71,276 )     (66,609 )     (123,434 )
    Total stockholders’ equity   754,822       726,665       721,250       718,812       693,369  
    Total liabilities and stockholders’ equity $ 7,927,457     $ 7,912,527     $ 7,855,707     $ 7,940,485     $ 7,959,434  
                                           
      Loans and Deposits        
      (Dollars in Thousands, Unaudited)        
      September 30,   June 30,   March 31,   December 31,   September 30,   % Change
      2024   2024   2024   2023   2023   Q3’24 vs Q2’24   Q3’24 vs Q3’23
    Commercial:                          
    Commercial real estate $ 2,105,459     $ 2,117,772     $ 1,984,723     $ 1,962,097     $ 1,916,056       (1 )%     10 %
    Commercial & Industrial   808,600       786,788       765,043       712,863       673,188       3 %     20 %
    Total commercial   2,914,059       2,904,560       2,749,766       2,674,960       2,589,244       %     13 %
    Residential Real estate   801,356       797,956       782,071       681,136       675,399       %     19 %
    Mortgage warehouse   80,437       68,917       56,548       45,078       65,923       17 %     22 %
    Consumer   1,008,144       1,051,407       1,029,790       1,016,456       1,028,436       (4 )%     (2 )%
    Total loans held for investment   4,803,996       4,822,840       4,618,175       4,417,630       4,359,002       %     10 %
    Loans held for sale   2,069       2,440       922       1,418       2,828       (15 )%     (27 )%
    Total loans $ 4,806,065     $ 4,825,280     $ 4,619,097     $ 4,419,048     $ 4,361,830       %     10 %
                               
    Deposits:                          
    Interest bearing deposits                          
    Savings and money market deposits $ 3,420,827     $ 3,364,726     $ 3,350,673     $ 3,369,149     $ 3,322,788       2 %     3 %
    Time deposits   1,220,653       1,178,389       1,136,121       1,179,739       1,250,606       4 %     (2 )%
    Total Interest bearing deposits   4,641,480       4,543,115       4,486,794       4,548,888       4,573,394       2 %     1 %
    Non-interest bearing deposits                          
    Non-interest bearing deposits   1,085,535       1,087,040       1,093,076       1,116,005       1,126,703       %     (4 )%
    Total deposits $ 5,727,015     $ 5,630,155     $ 5,579,870     $ 5,664,893     $ 5,700,097       2 %     %
                                                           
      Average Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average
    Balance
    Interest(4) Average
    Rate(4)
      Average
    Balance
    Interest(4) Average
    Rate(4)
      Average
    Balance
    Interest(4) Average
    Rate(4)
    Assets
    Interest earning assets                      
    Federal funds sold $ 64,743   $ 860     5.28 %   $ 47,805   $ 645     5.43 %   $ 92,305   $ 1,247     5.36 %
    Interest earning deposits   8,781     97     4.39 %     7,662     93     4.88 %     8,018     85     4.21 %
    Federal Home Loan Bank stock   53,826     1,607     11.88 %     53,827     1,521     11.36 %     34,509     618     7.10 %
    Investment securities – taxable (1)   1,301,830     6,526     1.99 %     1,309,305     6,465     1.99 %     1,650,081     8,170     1.96 %
    Investment securities – non-taxable (1)   1,125,295     7,987     2.82 %     1,132,065     8,072     2.87 %     1,220,998     8,863     2.88 %
    Total investment securities   2,427,125     14,513     2.38 %     2,441,370     14,537     2.39 %     2,871,079     17,033     2.35 %
    Loans receivable (2) (3)   4,775,788     75,828     6.32 %     4,662,124     72,208     6.23 %     4,280,700     63,254     5.89 %
    Total interest earning assets $ 7,330,263   $ 92,905     5.04 %   $ 7,212,788   $ 89,004     4.96 %   $ 7,286,611   $ 82,237     4.59 %
    Non-interest earning assets                      
    Cash and due from banks $ 108,609         $ 108,319         $ 100,331      
    Allowance for credit losses   (52,111 )         (50,334 )         (49,705 )    
    Other assets   471,259           508,555           587,514      
    Total average assets $ 7,858,020         $ 7,779,328         $ 7,924,751      
                           
    Liabilities and Stockholders’ Equity
    Interest bearing liabilities                      
    Interest bearing deposits $ 3,386,177   $ 18,185     2.14 %   $ 3,334,490   $ 16,814     2.03 %   $ 3,267,594   $ 12,661     1.54 %
    Time deposits   1,189,148     12,602     4.22 %     1,134,590     11,633     4.12 %     1,271,104     12,043     3.76 %
    Borrowings   1,149,952     10,221     3.54 %     1,184,172     10,278     3.49 %     1,180,452     10,399     3.50 %
    Repurchase agreements   123,524     910     2.93 %     125,144     935     3.00 %     136,784     825     2.39 %
    Subordinated notes   55,681     830     5.93 %     55,647     829     5.99 %     58,983     880     5.92 %
    Junior subordinated debentures issued to capital trusts   57,389     1,230     8.53 %     57,335     1,213     8.51 %     57,166     1,227     8.52 %
    Total interest bearing liabilities $ 5,961,871   $ 43,978     2.93 %   $ 5,891,378   $ 41,702     2.85 %   $ 5,972,083   $ 38,035     2.53 %
    Non-interest bearing liabilities
    Demand deposits $ 1,083,214         $ 1,080,676         $ 1,159,241      
    Accrued interest payable and other liabilities   74,563           80,942           77,942      
    Stockholders’ equity   738,372           726,332           715,485      
    Total average liabilities and stockholders’ equity $ 7,858,020         $ 7,779,328         $ 7,924,751      
    Net FTE interest income (non-GAAP) (5)   $ 48,927         $ 47,302         $ 44,202    
    Less FTE adjustments (4)     2,017           2,023           2,112    
    Net Interest Income   $ 46,910         $ 45,279         $ 42,090    
    Net FTE interest margin (Non-GAAP) (4)(5)       2.66 %         2.64 %         2.41 %
     
    (1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
    (2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
    (3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
    (4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate
    (5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
     
      Credit Quality        
      (Dollars in Thousands Except Ratios, Unaudited)        
      Quarter Ended        
      September 30,   June 30,   March 31,   December 31,   September 30,   % Change
      2024   2024   2024   2023   2023   3Q24 vs 2Q24   3Q24 vs 3Q23
    Non-accrual loans                          
    Commercial $ 6,830     $ 4,321     $ 5,493     $ 7,362     $ 6,919       58 %     (1 )%
    Residential Real estate   9,529       8,489       8,725       8,058       7,644       12 %     25 %
    Mortgage warehouse                                 %     %
    Consumer   7,208       5,453       4,835       4,290       4,493       32 %     60 %
    Total non-accrual loans   23,567       18,263       19,053       19,710       19,056       29 %     24 %
    90 days and greater delinquent – accruing interest   819       1,039       108       559       392       (21 )%     109 %
    Total non-performing loans   24,386       19,302       19,161       20,269       19,448       26 %     25 %
                               
    Other real estate owned                          
    Commercial $ 1,158     $ 1,111     $ 1,124     $ 1,124     $ 1,287       4 %     (10 )%
    Residential Real estate                     182       32       %     (100 )%
    Mortgage warehouse                                 %     %
    Consumer   36       57       50       205       72       (37 )%     (50 )%
    Total other real estate owned $ 1,194     $ 1,168     $ 1,174     $ 1,511     $ 1,391       2 %     (14 )%
                               
    Total non-performing assets $ 25,580     $ 20,470     $ 20,335     $ 21,780     $ 20,839       25 %     23 %
                               
    Loan data:                          
    Accruing 30 to 89 days past due loans $ 18,087     $ 19,785     $ 15,154     $ 16,595     $ 13,089       (9 )%     38 %
    Substandard loans   59,775       51,221       47,469       49,526       47,563       17 %     26 %
    Net charge-offs (recoveries)                          
    Commercial   (55 )     57       (57 )     233       142       (196 )%     (139 )%
    Residential Real estate   (9 )     (4 )     (5 )     21       (39 )     (125 )%     77 %
    Mortgage warehouse                                 %     %
    Consumer   439       534       488       531       619       (18 )%     (29 )%
    Total net charge-offs   375       587       426       785       722       (36 )%     (48 )%
                               
    Allowance for credit losses                          
    Commercial   32,854       31,941       30,514       29,736       29,472       3 %     11 %
    Residential Real estate   2,675       2,588       2,655       2,503       2,794       3 %     (4 )%
    Mortgage warehouse   862       736       659       481       714       17 %     21 %
    Consumer   16,490       16,950       16,559       17,309       16,719       (3 )%     (1 )%
    Total allowance for credit losses $ 52,881     $ 52,215     $ 50,387     $ 50,029     $ 49,699       1 %     6 %
                               
    Credit quality ratios                          
    Non-accrual loans to HFI loans   0.49 %     0.38 %     0.41 %     0.45 %     0.44 %        
    Non-performing assets to total assets   0.32 %     0.26 %     0.26 %     0.27 %     0.26 %        
    Annualized net charge-offs of average total loans   0.03 %     0.05 %     0.04 %     0.07 %     0.07 %        
    Allowance for credit losses to HFI loans   1.10 %     1.08 %     1.09 %     1.13 %     1.14 %        
                                                   
    Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
    Interest income (GAAP) (A) $ 90,888     $ 86,981     $ 85,264     $ 83,514     $ 80,125  
    Taxable-equivalent adjustment:                    
    Investment securities – tax exempt (1)     1,677       1,695       1,715       1,799       1,861  
    Loan receivable (2)     340       328       353       314       251  
    Interest income (non-GAAP) (B)   92,905       89,004       87,332       85,627       82,237  
    Interest expense (GAAP) (C)   43,978       41,702       41,976       41,257       38,035  
    Net interest income (GAAP) (D) =(A) – (C)   46,910       45,279       43,288       42,257       42,090  
    Net FTE interest income (non-GAAP) (E) = (B) – (C)   48,927       47,302       45,356       44,370       44,202  
    Average interest earning assets (F)   7,330,263       7,212,788       7,293,559       7,239,034       7,286,611  
    Net FTE interest margin (non-GAAP) (G) = (E*) / (F)   2.66 %     2.64 %     2.50 %     2.43 %     2.41 %
                         
    (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
    (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
    *Annualized
     
    Non–GAAP Reconciliation of Return on Average Tangible Common Equity
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
                         
    Net income (loss) (GAAP) (A) $ 18,180     $ 14,140     $ 13,991     $ (25,215 )   $ 16,205  
                         
    Average stockholders’ equity (B)   738,372       726,332       725,083       702,793       715,485  
    Average intangible assets (C)   166,819       167,659       168,519       169,401       170,301  
    Average tangible equity (Non-GAAP) (D) = (B) – (C) $ 571,553     $ 558,673     $ 556,564     $ 533,392     $ 545,184  
    Return on average tangible common equity (“ROACE”) (non-GAAP) (E) = (A*) / (D)   12.65 %     10.18 %     10.11 %   (18.76 )%     11.79 %
    *Annualized                    
                         
    Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024   2024   2024   2023   2023
    Total stockholders’ equity (GAAP) (A) $ 754,822     $ 726,665     $ 721,250     $ 718,812     $ 693,369  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible common equity (non-GAAP) (C) = (A) – (B) $ 588,544     $ 559,544     $ 553,285     $ 549,975     $ 523,628  
                         
    Total assets (GAAP) (D)   7,927,457       7,912,527       7,855,707       7,940,485       7,959,434  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible assets (non-GAAP) (E) = (D) – (B) $ 7,761,179     $ 7,745,406     $ 7,687,742     $ 7,771,648     $ 7,789,693  
                         
    Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E)   7.58 %     7.22 %     7.20 %     7.08 %     6.72 %
                                             
    Non–GAAP Reconciliation of Tangible Book Value Per Share
    (Dollars in Thousands, Unaudited)
        Three Months Ended
        September 30,   June 30,   March 31,   December 31,   September 30,
        2024
      2024
      2024
      2023
      2023
    Total stockholders’ equity (GAAP) (A) $ 754,822     $ 726,665     $ 721,250     $ 718,812     $ 693,369  
    Intangible assets (end of period) (B)   166,278       167,121       167,965       168,837       169,741  
    Total tangible common equity (non-GAAP) (C) = (A) – (B) $ 588,544     $ 559,544     $ 553,285     $ 549,975     $ 523,628  
    Common shares outstanding (D)   43,712,059       43,712,059       43,726,380       43,652,063       43,648,501  
                         
    Tangible book value per common share (non-GAAP) (E) = (C) / (D) $ 13.46     $ 12.80     $ 12.65     $ 12.60     $ 12.00  
                                             
    Contact: John R. Stewart, CFA
      EVP, Chief Financial Officer
    Phone: (219) 814–5833
    Fax: (219) 874–9280
    Date: October 23, 2024
       

    The MIL Network

  • MIL-OSI USA: ICYMI—Hagerty Joins CNN News Central to Discuss Latest Trump Smear Campaign, Biden-Harris Failed Economic and Foreign Policies

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    ‘The American public can see right through it.’
    PHILADELPHIA, PA—United States Senator Bill Hagerty (R-TN), former U.S. Ambassador to Japan in the Trump Administration, today joined CNN News Central to discuss the latest outrageous smear campaign against former President Donald Trump and the Biden-Harris Administration’s failures in both the economy and foreign policy.

    *Click the photo above or here to watch*
    Partial Transcript
     Hagerty on his personal experience serving in the Trump Administration: “I’ll say this: I did serve with President Trump as U.S. Ambassador to Japan. We have more U.S. military stations there in Japan than any place else in the world overseas. President Trump came to visit me three times—we always met with our military there—and I never saw anything but the utmost respect, both President Trump’s respect for our military, and their love and respect for him. That’s what I know.”
    Hagerty on John Kelly’s slanderous claims against Trump: “It’s wholly inconsistent with my experience with President Trump. I also have reason to doubt it because there’ve been articles published about ‘losers’ and the things that were supposedly said in Normandy. I called the Ambassador right away. Again, these are old stories that are being drug up, of course, within two weeks of the election. But when I called the Ambassador, she said [the claims were] absolutely not true [regarding] what was attributed to John Kelly [in 2020], 20 other staffers said that was the case as well. I think this is being brought up at a time to divert and deflect. Here’s the story: American people right now need to be asking themselves a very basic question: Are they better off today than they were when President Trump was in office? Kamala Harris is claiming all these things that she might be able to do, yet she’s done none of them for the past three and a half years. What we’ve got is a situation where Kamala Harris can’t find any place where she would differ from Joe Biden. Seventy two percent of Americans think that this country is on the wrong track. All they have to do is look back to the time when President Trump was in office; that debunks these claims. President Trump had our economy working. People respected us—nations respected us—we had people better off in every demographic group. And I think that’s why Americans are seeing President Trump’s polls move forward, and I think that’s why we see these desperate things coming out here at the last minute, again, within the last two weeks, citing something from the deep past. It’s irrelevant at this point. Americans need to know: Will [they] be better off? Seventy two percent of Americans say we’re on the wrong track right now; I think they’re ready for change […] Real wages [are] what I think most people care about. Real wages [are] what they care about, and they were better off [under Trump].”
    Hagerty on the false claim that Trump doesn’t respect the military: “His record as commander in Chief debunks [these baseless claims] in my mind…Because why? He actually did have us in position where there were no wars. You have [President] Joe Biden as Commander in Chief; what did he do? He and [Vice President] Kamala Harris, the last in the room, made a terrible decision in Afghanistan that led to the death of 13 service members, very personal to me. One of them was Ryan Knauss, a Tennessean. And I had to call Ryan’s parents and tell them what happened. You think about it: Joe Biden is there at the return of the remains at Dover. He doesn’t even have time for them; he’s looking at his watch. And when he’s in debate, he tells the world that no military man or woman died under his watch. He just forgot about the 13 that died on his watch. That’s presidential disrespect; I don’t see that coming up. Instead, you have claims that cannot be verified from someone that obviously doesn’t like President Trump and was fired by President Trump […] President Trump is a patriot. He loves this country.”
    Hagerty on Trump’s foreign policies having substantially greater success than Biden-Harris’ policies: “I’ve actually seen Donald Trump in the room with Vladimir Putin and with Xi Jinping, with [Prime Minister Narendra] Modi, with [Former Prime Minister Shinzo] Abe. He’s able to hold his own. I certainly don’t think Kamala Harris could do that. Donald Trump knows how to negotiate. He knows how to deal with world leaders, and he can deal from a position of strength. That’s what Americans need right now. That’s what Americans should be asking themselves this close to the election, is who will represent our nation? Who will put us back in a posture of strength? Donald Trump clearly can do that because he’s done it before. Under his watch, we had no major wars breakout. As soon as Joe Biden and Kamala Harris came back into office, we saw the exact opposite. We’ve got hot wars now in the Middle East—you see what’s happening in Ukraine and Russia…It’s a very bad situation that’s occurred over the past three and a half years. Kamala Harris could have done something about it if she were serious. Obviously, she didn’t, and I think the American public can see right through it.”

    MIL OSI USA News

  • MIL-OSI: HCI Group Assumes Over 42,000 Policies from Citizens, Representing Approximately $200 Million in Premium

    Source: GlobeNewswire (MIL-OSI)

    TAMPA, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — HCI Group, Inc. (NYSE: HCI), a holding company with operations in homeowners insurance, information technology services, real estate, and reinsurance, announced today that its insurance subsidiaries have successfully assumed over 42,000 policies from Citizens Property Insurance Corporation, Florida’s state-backed insurance company. The policies assumed represent approximately $200 million of in-force premium.

    “We successfully navigated a highly competitive Citizens’ depopulation process and exceeded our fourth quarter new business goal through the October assumption alone,” said Paresh Patel, HCI’s Chairman and Chief Executive Officer. “Our technology, which enables us to select policies that best fit our underwriting and profitability criteria, combined with our strong rate of policyholder adoption, allows us to forgo additional assumptions for the balance of the year.”

    Homeowners Choice was approved for 25,000 policies and assumed approximately 22,000 policies – an 88% acceptance rate. TypTap Insurance Company was approved for 25,000 policies and assumed approximately 20,000 policies – an 80% acceptance rate. The assumption of policies by both insurance subsidiaries is effective as of October 22, 2024.

    About HCI Group, Inc.
    HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, information technology services, insurance management, real estate, and reinsurance. HCI’s leading insurance operation, TypTap Insurance Company, is a technology-driven homeowners insurance company. TypTap’s operations are powered in large part by insurance-related information technology developed by HCI’s software subsidiary, Exzeo USA, Inc. HCI’s largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners insurance primarily in Florida. HCI’s real estate subsidiary, Greenleaf Capital, LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.

    The company’s common shares trade on the New York Stock Exchange under the ticker symbol “HCI” and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company’s website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.

    Company Contact:
    Bill Broomall, CFA
    Investor Relations
    HCI Group, Inc.
    Tel (813) 776-1012
    wbroomall@typtap.com

    Investor Relations Contact:
    Matt Glover
    Gateway Group, Inc.
    Tel 949-574-3860
    HCI@gateway-grp.com

    The MIL Network

  • MIL-OSI: Bel Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Sales and Gross Margin Percentage Above Mid-Point of Expected Ranges
    Provides Q4-24 Sales and Gross Margin Guidance

    WEST ORANGE, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the third quarter of 2024.

    Third Quarter 2024 Highlights

    • Net sales of $123.6 million compared to $158.7 million in Q3-23
    • Gross profit margin of 36.1%, up from 35.0% in Q3-23
    • Net earnings of $8.1 million versus $19.4 million in Q3-23
    • Adjusted EBITDA of $20.6 million (16.7% of sales) as compared to $29.9 million (18.8% of sales) in Q3-23
    • Repurchased 26,647 shares of Bel stock at an aggregate cost of $1.9 million in Q3-24

    “We were pleased that our third quarter results landed above the midpoint of guidance for both sales and gross margin,” said Daniel Bernstein, President and CEO. “Each of our three product segments performed as expected, given the current market, regulatory and seasonal factors outlined in last quarter’s disclosures and on the Q2 earnings call.

    “During the third quarter, the team focused on a variety of operational and other internal initiatives. With our announcement of the signing our definitive purchase agreement in September, we welcomed Enercon to the Bel family and are positioned to introduce new customers, end markets and geographies to our Power segment upon the closing expected later this quarter. In a project scheduled to be completed during the first quarter of 2025, our fuse manufacturing, located in China, will be consolidated into other existing Bel facilities thus reducing our footprint further. The fuse initiative is anticipated to achieve annual cost savings of approximately $1.5 million once completed. We are also pleased to announce the addition of two senior associates in newly-created positions to Bel’s corporate team. Uma Pengali has joined as Global Head of Sales and Marketing and Anubhav Gothi has joined as Bel’s Global Head of Contracts. We believe Uma and Anubhav will be instrumental contributors to Bel’s long-term success,” concluded Mr. Bernstein.

    Farouq Tuweiq, CFO, added, “We have started to see positive trends in bookings during the months of September and October across each of our product segments, which is a positive indicator as we enter 2025. These green shoots are largely in our networking and industrial markets, and in the distribution channel. Looking to the fourth quarter of 2024, we expect GAAP net sales in the range of $117 to $125 million with gross margins of approximately 34 – 36%, based on information available as of today. This guidance excludes any potential incremental contribution related to the previously-announced acquisition of Enercon, which is expected to close during the fourth quarter.

    “Overall, we are encouraged by the sequential improvement in market conditions that we are seeing and believe this will bode well for 2025. We are excited to continue our journey of growth and continuous improvement with our new team members,” concluded Mr. Tuweiq.

    Non-GAAP financial measures, such as Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA, adjust corresponding GAAP measures for provision for income taxes, interest expense, and depreciation and amortization, and also exclude, where applicable for the covered period presented in the financial statements, certain unusual or special items identified by management such as restructuring charges, gains/losses on sales of businesses and properties, acquisition related costs, and certain litigation costsNon-GAAP adjusted net sales exclude expedite fee revenue. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.

    Conference Call
    Bel has scheduled a conference call for 8:30 a.m. ET on Thursday, October 24, 2024 to discuss these results. To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of at least 30 days at this same Internet address. For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13749258 after 12:30 pm ET, also for 30 days.

    About Bel
    Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation and eMobility industries. Bel’s portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets. Bel’s product groups include Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components), Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), and Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies). The Company operates facilities around the world.

    Company Contact:
    Farouq Tuweiq  
    Chief Financial Officer  
    ir@belf.com

    Investor Contact:
    Three Part Advisors
    Jean Marie Young, Managing Director or Steven Hooser, Partner
    631-418-4339
    jyoung@threepa.com; shooser@threepa.com

    Cautionary Language Concerning Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the fourth quarter of 2024, and our statements regarding our expectations for future periods generally including anticipated financial performance, projections and trends for the remainder of the year and other future periods including 2025, and our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, gross margin, products, product segments, customers, end markets, geographies and bookings, statements regarding our views and expectations about the impact of market trends and seasonal factors, statements about the closing of the Enercon Technologies, Ltd. (“Enercon”) acquisition including the anticipated timing thereof, and statements about the anticipated benefits and impact of the Enercon acquisition including in terms of introducing new customers, end markets and geographies to our Power segment, as well as any potential incremental contribution by Enercon post-closing to Bel’s financial results, statements regarding consolidation projects and initiatives, the expected timing of implementation and completion thereof, and the anticipated projections of cost savings to be realized thereby, statements about future contributions of new employees and the role of newly-created positions in the corporate team in contributing to Bel’s long-term success, statements regarding our expectations and beliefs regarding trends in the Company’s business and industry and the markets in which Bel operates, and about the broader economy and macroeconomic environment generally, including statements about trends in bookings and views about indicators of economic conditions including as to particular sectors or markets, improvement in market conditions, and statements about Bel’s growth and improvement, and other statements regarding the Company’s positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, unanticipated difficulties, delays or expenditures relating to the proposed Enercon acquisition, including, without limitation, difficulties that result in the failure to realize the expected benefits and synergies within the expected time period (if at all); disruptions of Bel’s or Enercon’s current plans, operations and relationships with customers, suppliers, distributors, business partners and regulators caused by the announcement and pendency of the proposed Enercon acquisition; potential difficulties in employee retention due to the announcement and pendency of the proposed Enercon acquisition; the possibility that the proposed Enercon acquisition does not close, including, but not limited to, failure to satisfy the closing conditions; the market concerns facing our customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or our industry in particular; the effects of rising input costs, and cost changes generally, including the potential impact of inflationary pressures; difficulties associated with integrating previously acquired companies, and any difficulties that may be experienced in integrating Enercon following the closing of the Enercon acquisition; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; the impact of public health crises (such as the governmental, social and economic effects of COVID or other future epidemics or pandemics); difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with our international operations, including our substantial manufacturing operations in China, and following the acquisition of Enercon, risks associated with operations in Israel, which may be adversely affected by political or economic instability, major hostilities or acts of terrorism in the region; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment including the potential effects of trade restrictions that may impact Bel, its customers and/or its suppliers; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market’s acceptance of the Company’s new products and competitive responses to those new products; the impact of changes to U.S. and applicable foreign legal and regulatory requirements, including tax laws, trade and tariff policies; and the risks detailed in Bel’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. In light of the risks and uncertainties impacting our business, there can be no assurance that any forward-looking statement will in fact prove to be correct. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.

    Non-GAAP Financial Measures
    The Non-GAAP financial measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”). These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation. We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. For additional information about our use of non-GAAP financial measures in connection with our Incentive Compensation Program for 2023, please see the Executive Compensation discussion appearing in our Definitive Proxy Statement filed with the Securities and Exchange Commission on April 1, 2024.

    Website Information
    We routinely post important information for investors on our website, www.belfuse.com, in the “Investor Relations” section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

    [Financial tables follow]

               
               
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
               
      Three Months Ended     Nine Months Ended  
      September 30,     September 30,  
      2024     2023     2024     2023  
                                   
    Net sales $ 123,638     $ 158,682     $ 384,933     $ 499,803  
    Cost of sales   78,961       103,217       238,782       335,137  
    Gross profit   44,677       55,465       146,151       164,666  
    As a % of net sales   36.1 %     35.0 %     38.0 %     32.9 %
                                   
    Research and development costs   5,443       5,292       16,652       16,521  
    Selling, general and administrative expenses   26,700       23,717       75,785       74,149  
    As a % of net sales   21.6 %     14.9 %     19.7 %     14.8 %
    Restructuring charges   1,087       2,091       1,790       6,306  
    Gain on sale of property         (147 )           (3,819 )
    Income from operations   11,447       24,512       51,924       71,509  
    As a % of net sales   9.3 %     15.4 %     13.5 %     14.3 %
                                   
    Gain on sale of Czech Republic business         (135 )           980  
    Interest expense   (414 )     (512 )     (1,263 )     (2,402 )
    Interest income   1,480             3,741        
    Other income/expense, net   (1,325 )     (96 )     21       (286 )
    Earnings before income taxes   11,188       23,769       54,423       69,801  
                                   
    Provision for income taxes   3,108       4,321       11,663       8,006  
    Effective tax rate   27.8 %     18.2 %     21.4 %     11.5 %
    Net earnings $ 8,080     $ 19,448     $ 42,760     $ 61,795  
    As a % of net sales   6.5 %     12.3 %     11.1 %     12.4 %
                                   
    Weighted average number of shares outstanding:                              
    Class A common shares – basic and diluted   2,116       2,142       2,126       2,142  
    Class B common shares – basic and diluted   10,434       10,636       10,512       10,636  
                                   
    Net earnings per common share:                              
    Class A common shares – basic and diluted $ 0.61     $ 1.46     $ 3.23     $ 4.63  
    Class B common shares – basic and diluted $ 0.65     $ 1.54     $ 3.41     $ 4.88  
     
    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
     
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Balance Sheets
    (in thousands, unaudited)
     
      September 30, 2024     December 31, 2023  
    Assets              
    Current assets:              
    Cash and cash equivalents $ 134,266     $ 89,371  
    Held to maturity U.S. Treasury securities   29,541       37,548  
    Accounts receivable, net   75,998       84,129  
    Inventories   124,885       136,540  
    Other current assets   22,959       33,890  
    Total current assets   387,649       381,478  
    Property, plant and equipment, net   36,735       36,533  
    Right-of-use assets   22,901       20,481  
    Related-party note receivable   3,070       2,152  
    Equity method investment   10,014       10,282  
    Goodwill and other intangible assets, net   72,772       76,033  
    Other assets   51,276       44,672  
    Total assets $ 584,417     $ 571,631  
                   
    Liabilities and Stockholders’ Equity              
    Current liabilities:              
    Accounts payable $ 37,139     $ 40,441  
    Operating lease liability, current   6,451       6,350  
    Other current liabilities   53,297       63,818  
    Total current liabilities   96,887       110,609  
    Long-term debt   60,000       60,000  
    Operating lease liability, long-term   16,808       14,212  
    Other liabilities   43,360       46,252  
    Total liabilities   217,055       231,073  
    Stockholders’ equity   367,362       340,558  
    Total liabilities and stockholders’ equity $ 584,417     $ 571,631  
     
    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
     
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
         
      Nine Months Ended  
      September 30,  
      2024     2023  
                   
    Cash flows from operating activities:              
    Net earnings $ 42,760     $ 61,795  
    Adjustments to reconcile net earnings to net cash provided by operating activities:              
    Depreciation and amortization   10,759       9,962  
    Stock-based compensation   2,782       2,712  
    Amortization of deferred financing costs   27       33  
    Deferred income taxes   (5,366 )     (4,894 )
    Net unrealized losses on foreign currency revaluation   1,275       130  
    Gain on sale of property         (3,819 )
    Gain on sale of Czech Republic business         (980 )
    Other, net   628       (495 )
    Changes in operating assets and liabilities:              
    Accounts receivable, net   8,366       11,931  
    Unbilled receivables   7,482       1,590  
    Inventories   12,266       29,313  
    Accounts payable   (3,302 )     (18,674 )
    Accrued expenses   (11,849 )     4,536  
    Accrued restructuring costs   (590 )     (148 )
    Income taxes payable   4,809       2,008  
    Other operating assets/liabilities, net   (4,327 )     (13,575 )
    Net cash provided by operating activities   65,720       81,425  
                   
    Cash flows from investing activities:              
    Purchases of property, plant and equipment   (7,906 )     (9,659 )
    Purchases of held to maturity U.S. Treasury securities   (131,309 )      
    Proceeds from held to maturity securities   139,316        
    Payment for equity method investment         (9,975 )
    Investment in related party notes receivable   (918 )     (1,905 )
    Proceeds from sale of property, plant and equipment   236       5,403  
    Proceeds from sale of business         5,063  
    Net cash used in investing activities   (581 )     (11,073 )
                   
    Cash flows from financing activities:              
    Dividends paid to common stockholders   (2,487 )     (2,490 )
    Deferred financing costs   (330 )      
    Repayments under revolving credit line         (40,000 )
    Borrowings under revolving credit line         5,000  
    Purchases of common stock   (16,053 )      
    Net cash used in financing activities   (18,870 )     (37,490 )
                   
    Effect of exchange rate changes on cash and cash equivalents   (1,374 )     (2,903 )
                   
    Net increase in cash and cash equivalents   44,895       29,959  
    Cash and cash equivalents – beginning of period   89,371       70,266  
    Cash and cash equivalents – end of period $ 134,266     $ 100,225  
                   
                   
    Supplementary information:              
    Cash paid during the period for:              
    Income taxes, net of refunds received $ 15,556     $ 18,148  
    Interest payments $ 3,010     $ 3,738  
    ROU assets obtained in exchange for lease obligations $ 4,711     $ 5,887  
     
    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
     
    Bel Fuse Inc.
    Supplementary Information(1)
    Product Group Highlights
    (dollars in thousands, unaudited)
     
      Sales     Gross Margin  
      Q3-24     Q3-23     % Change     Q3-24     Q3-23     Basis Point Change  
    Power Solutions and Protection $ 48,680     $ 74,862       -35.0 %     39.4 %     41.7 %     (230 )
    Connectivity Solutions   55,715       51,771       7.6 %     36.6 %     35.8 %     80  
    Magnetic Solutions   19,243       32,049       -40.0 %     27.3 %     22.0 %     530  
    Total $ 123,638     $ 158,682       -22.1 %     36.1 %     35.0 %     110  
      Sales     Gross Margin  
      YTD September 2024     YTD September 2023     % Change     YTD September 2024     YTD September 2023     Basis Point Change  
    Power Solutions and Protection $ 167,478       245,134       -31.7 %     43.2 %     37.5 %     570  
    Connectivity Solutions   167,822       160,010       4.9 %     37.3 %     35.8 %     150  
    Magnetic Solutions   49,633       94,659       -47.6 %     23.9 %     23.0 %     90  
    Total $ 384,933     $ 499,803       -23.0 %     38.0 %     32.9 %     510  
     
    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
     
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Net Sales to Non-GAAP Adjusted Net Sales(2)
    Reconciliation of GAAP Net Earnings to EBITDA and Adjusted EBITDA(2)
    (in thousands, unaudited)
               
      Three Months Ended     Nine Months Ended  
      September 30,     September 30,  
      2024     2023     2024     2023  
                                   
    GAAP net sales $ 123,638     $ 158,682     $ 384,933     $ 499,803  
    Expedite fee revenue         1,008       57       14,425  
    Non-GAAP adjusted net sales $ 123,638     $ 157,674     $ 384,876     $ 485,378  
      Three Months Ended     Nine Months Ended  
      September 30,     September 30,  
      2024     2023     2024     2023  
                                   
    GAAP Net earnings $ 8,080     $ 19,448     $ 42,760     $ 61,795  
    Interest expense   414       512       1,263       2,402  
    Provision for income taxes   3,108       4,321       11,663       8,006  
    Depreciation and amortization   3,636       3,391       10,759       9,962  
    EBITDA $ 15,238     $ 27,672     $ 66,445     $ 82,165  
    % of net sales   12.3 %     17.4 %     17.3 %     16.4 %
                                   
    Unusual or special items:                              
    Restructuring charges   1,087       2,091       1,790       6,306  
    MPS litigation costs         132             2,903  
    Gain on sale of Czech Republic business         135             (980 )
    Gain on sale of properties         (147 )           (3,819 )
    Acquisition related costs   4,292             4,292        
    Adjusted EBITDA $ 20,617     $ 29,883     $ 72,527     $ 86,575  
    % of net sales   16.7 %     18.8 %     18.8 %     17.3 %
     
    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
     
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Measures to Non-GAAP Measures(2)
    (in thousands, except per share data) (unaudited)
     
    The following tables detail the impact that certain unusual or special items had on the Company’s net earnings per common Class A and Class B basic and diluted shares (“EPS”) and the line items in which these items were included on the consolidated statements of operations.
     
        Three Months Ended September 30, 2024     Three Months Ended September 30, 2023  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net earnings     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net earnings     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 11,188     $ 3,108     $ 8,080     $ 0.61     $ 0.65     $ 23,769     $ 4,321     $ 19,448     $ 1.46     $ 1.54  
    Restructuring charges     1,087       154       933       0.07       0.07       2,091       407       1,684       0.13       0.13  
    MPS litigation costs                                   132       30       102       0.01       0.01  
    Gain on sale of Czech Republic business                                   135       7       128       0.01       0.01  
    Gain on sale of properties                                   (147 )     (29 )     (118 )     (0.01 )     (0.01 )
    Acquisition related costs     4,292       987       3,305       0.25       0.27                                
    Non-GAAP measures   $ 16,567     $ 4,249     $ 12,318     $ 0.94     $ 0.99     $ 25,980     $ 4,736     $ 21,244     $ 1.59     $ 1.68  
        Nine Months Ended September 30, 2024     Nine Months Ended September 30, 2023  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net earnings     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net earnings     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 54,423     $ 11,663     $ 42,760     $ 3.23     $ 3.41     $ 69,801     $ 8,006     $ 61,795     $ 4.63     $ 4.88  
    Restructuring charges     1,790       317       1,473       0.11       0.12       6,306       1,007       5,299       0.40       0.42  
    MPS litigation costs                                   2,903       667       2,236       0.17       0.18  
    Gain on sale of Czech Republic business                                   (980 )     (49 )     (931 )     (0.07 )     (0.07 )
    Gain on sale of properties                                   (3,819 )     (763 )     (3,056 )     (0.23 )     (0.24 )
    Acquisition related costs     4,292       987       3,305       0.25       0.26                                
    Non-GAAP measures   $ 60,505     $ 12,967     $ 47,538     $ 3.59     $ 3.80     $ 74,211     $ 8,868     $ 65,343     $ 4.89     $ 5.16  
     
    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP adjusted net sales, Non-GAAP net earnings, Non-GAAP EPS, EBITDA and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.
     

    The MIL Network

  • MIL-OSI: NCS Multistage Holdings, Inc. Schedules Third Quarter 2024 Earnings Release and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Oct. 23, 2024 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (“NCS” or the “Company”) (NASDAQ:NCSM) will host a conference call to discuss its third quarter 2024 results on Thursday, October 31, 2024 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). NCS will issue its third quarter 2024 earnings release the evening prior to the conference call.

    The conference call will be available via a live audio webcast. Participants who wish to ask questions may register for the call here to receive the dial-in numbers and unique PIN. If you wish to join the conference call but do not plan to ask questions, you may join the listen-only webcast here. It is recommended that participants join at least 10 minutes prior to the event start. The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

    NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

    Contact:
    Mike Morrison
    Chief Financial Officer and Treasurer
    +1 281-453-2222
    IR@ncsmultistage.com

    The MIL Network

  • MIL-OSI USA: Tillis Statement on Vote to Confirm Pete Hegseth as Secretary of Defense

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis
    WASHINGTON D.C. – Today, Senator Thom Tillis released the following statement on his decision to vote to confirm Pete Hegseth as Secretary of Defense:
    “From the beginning, I have been clear about my position: if President Trump’s nominees were reported favorably out of the relevant committees, I would support their confirmation on the Senate floor absent new material information about their qualifications. Once Pete Hegseth’s nomination was sent to the floor by my colleagues on the Senate Armed Services Committee, I conducted my own due diligence, including asking tough questions of Pete and I appreciated his candor and openness in answering them. Pete has a unique perspective as a veteran of the wars in Iraq and Afghanistan and is unquestionably passionate about modernizing our military and supporting the brave patriots like himself who serve our nation. I will support his confirmation and look forward to working with him to rebuild our military and advance President Trump’s peace through strength agenda.”

    MIL OSI USA News

  • MIL-OSI USA: Hoeven Statement on Confirmation of Pete Hegseth as Secretary Of Defense

    US Senate News:

    Source: United States Senator for North Dakota John Hoeven

    01.24.25

    WASHINGTON – Senator John Hoeven issued the following statement after the U.S. Senate confirmed Pete Hegseth to serve as Secretary of the Department of Defense.

    “Pete Hegseth served in combat during his time in the military and has been a strong advocate for our veterans,” said Hoeven. “We look forward to working with him to modernize our military and ensure peace through strength. North Dakota plays an integral role in our national defense, with our leadership in unmanned aerial systems in Grand Forks and two legs of the nuclear deterrent in Minot, and together with the Trump administration we’ll work to continue and grow our state’s leadership as well as support our military members.”

    MIL OSI USA News

  • MIL-OSI USA: Crapo Comments on Hegseth Confirmation

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senator Mike Crapo (R-Idaho) issued the following statement after the Senate confirmed Pete Hegseth to be Secretary of the U.S. Department of Defense (DOD), by a vote of 51-50, with Vice President JD Vance casting the tie-breaking vote:

    “For the past four years, the DOD has become too focused on identity politics and less focused on ensuring the United States Armed Forces are capable and ready to defend our national security at home and abroad.  At a time when threats to our national security are growing increasingly complex and unpredictable, we need a military that is ready for engagement from every angle.  Pete Hegseth will be an agent for change.  He will replace policies of appeasement with those of carefully-applied force.  I congratulate Secretary Hegseth on his confirmation.”

    MIL OSI USA News

  • MIL-OSI USA: Senate Confirms Pete Hegseth as Secretary of Defense

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)
    WASHINGTON, D.C. — The United States Senate confirmed Pete Hegseth as the 29th U.S. Secretary of Defense by a vote of 51 to 50 today. U.S. Senator Kevin Cramer (R-ND), a member of the Senate Armed Services Committee, issued the following statement after voting in favor of Hegseth’s nomination:
    “Pete is a change agent and leader for a new generation. He will play a pivotal role in protecting our country and implementing President Trump’s agenda to restore our military’s strength and mission. Pete has the skills and experience to lead the Pentagon, and despite Democrats’ obstruction, I’m glad the Senate confirmed him without delay.”

    MIL OSI USA News

  • MIL-OSI USA: January 24th, 2025 Heinrich Joins Luján, Hawley to Reintroduce RECA to Give Nuclear Radiation Victims Compensation

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich
    WASHINGTON – Today, U.S. Senator Martin Heinrich (D-N.M.) joined U.S. Senators Ben Ray Luján (D-N.M.) and Josh Hawley (R-Mo.), along with U.S. Senators Eric Schmitt (R-Mo.), and Mark Kelly (D-Ariz.) to reintroduce their Radiation Exposure Compensation (RECA) Reauthorization Act to compensate Americans exposed to radiation by government nuclear programs. 
    Despite the Senate passing this bill last Congress, the House of Representatives failed to pass RECA reauthorization before its expiration deadline.  
    “It’s long overdue for Congress to pass an extension and expansion of the Radiation Exposure Compensation Act (RECA) that includes the Tularosa Basin Downwinders whose communities and families were harmed by the fallout from the 1945 Trinity Test, the uranium miners exposed to radiation in service to our national defense, and all other Americans who were directly impacted by our nation’s nuclear testing program,” said Heinrich. “Unfortunately, RECA languished in the House of Representatives last Congress due to Republicans’ refusal to put the bill on the floor. I remain determined to finally deliver justice, recognition, and compensation to the Americans whose livelihoods and health have been devastated by the long-term consequences of radiation exposure.”
    “In New Mexico and across the country, thousands sacrificed to contribute to our national security. Today, individuals affected by nuclear weapons testing, downwind radiation exposure, and uranium mining are still waiting to receive the justice they are owed,” said Luján. “It is unacceptable that so many who have gotten sick from radiation exposure have been denied compensation by Congress. Despite having passed RECA legislation twice through the Senate with broad bipartisan support, and securing the support of the previous administration, I was disheartened that Speaker Johnson refused a vote on RECA to help victims. This Congress, I am proud to partner with Senator Hawley again to extend and expand RECA. RECA is a bipartisan priority and I am hopeful that we will once again get it through the Senate and hope the Speaker commits to getting victims the compensation they are owed.”
    “The time to reauthorize RECA is now. The Senate has done this twice before and must do it again. For far too long, Missourians and others across America have suffered without compensation from their government. It is vital that we unite to pass this legislation now, and that the President sign it into law,”said Hawley. 
    Heinrich has reintroduced legislation to extend and expand RECA since his first Senate term, starting in 2013.
    Last fall, Heinrich joined Luján, U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.), and advocates and survivors who traveled all the way across the country from New Mexico for a press conference calling on House Speaker Mike Johnson (R-La.) to hold a vote on a Senate-passed bill that would strengthen the Radiation Exposure Compensation Act (RECA).
    Heinrich also pressed Speaker Mike Johnson to immediately take up the Senate-passed and fully comprehensive RECA extension in bipartisan, bicameral letter. The letter, led by Luján, said in part: “We urge action immediately to strengthen the RECA program before its impending sunset in June 2024. The United States government exposed these Americans to radiation as part of our national security efforts through World War II and the Cold War. It is long past time that RECA is strengthened to give these Americans their recognition and compensation. Their livelihoods, often devastated by the long-term consequences of radiation exposure, depend on your leadership and commitment to rectifying past injustices. Let us honor the commitment we made to these citizens by ensuring they receive the support and recognition they so rightly deserve.”
    Last March, Heinrich delivered remarks on the Senate floor urging his colleagues to pass bipartisan legislation to reauthorize and expand RECA. Later that day, Heinrich secured Senate passage of bipartisan legislation to reauthorize and expand RECA to compensate individuals exposed to radiation while working in uranium mines or living downwind from atomic weapons tests. 

    MIL OSI USA News

  • MIL-OSI USA: January 24th, 2025 Heinrich Opposes Hegseth Confirmation to Lead Pentagon

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich
    WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.), a member of the Senate Select Committee on Intelligence and the Military Construction, Veterans Affairs, and Related Agencies Senate Appropriations Subcommittee, released the following statement after voting against advancing the confirmation of President Trump’s controversial and unqualified nominee to lead the U.S. Department of Defense, Pete Hegseth.
    “Pete Hegseth’s dishonorable record of sexual assault and domestic violence, drunk and disorderly conduct in public, racist, sexist, and anti-LGBTQ+ remarks, disregard for the laws of war, and financial mismanagement of the small veterans organizations he once oversaw would disqualify him from leading any organization — let alone the Pentagon.
    “This nominee’s embrace of torture tactics and disdain for the principles outlined in the Geneva Conventions and enshrined in U.S. law is also extremely alarming. As I wrote in the Senate Intelligence Committee’s report on torture in 2014, ‘torture doesn’t work.’ It undermines our nation’s credibility on human rights, produces uneven and often questionable information, and wastes millions of taxpayer dollars. It is wrong in every sense of the word, and I will not support any nominee who even entertains going down that path again. 
    “This nominee’s confirmation represents an alarming abdication of the Senate’s constitutional duty of advice and consent. President Trump and my Republican colleagues are handing the keys to the Pentagon to this unqualified and unstable person, jeopardizing our national security and making us all less safe.”

    MIL OSI USA News

  • MIL-OSI USA: Schatz: Hawai‘i To Receive Nearly $10 Million in Federal Funding To Restore Historic Waiola Church, Hale Aloha Museum in Lāhainā

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz
    WASHINGTON – U.S. Senator Brian Schatz (D-Hawai‘i) announced that Hawai‘i will receive nearly $9.8 million in new federal funding from the Federal Emergency Management Agency (FEMA) to support the ongoing recovery effort on Maui following the devastating fires. The funding, which Schatz helped secure, will help the community of Lahaina rebuild the Waiola Church, Hale Aloha Museum, the Old Lahaina Courthouse Building, and the Master’s Reading Room.
    “Waiola Church is an important part of Lahaina’s history, heritage, and community,” said Senator Schatz, a senior member of the Senate Appropriations Committee. “This new funding will help us restore some of Lahaina’s historic buildings and help bring this community back.”
    In December 2024, Schatz secured an estimated $1.6 billion in new funding for Maui’s continued recovery, aimed at building permanent housing for survivors, in addition to almost $500 million to support economic development, small business needs, water infrastructure, and more. The funding was approved following efforts led by Schatz for more than a year to press the need for long-term disaster aid both in Congress and with the Biden administration.

    MIL OSI USA News

  • MIL-OSI USA: California Attorney General Bonta Issues Statement on Trump Administration’s Anti-Abortion Actions

    Source: US State of California

    Friday, January 24, 2025

    Contact: (916) 210-6000, agpressoffice@doj.ca.gov

    OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to President Trump pardoning 23 individuals convicted under the federal Freedom of Access to Clinic Entrances (FACE) Act, his U.S. Department of Justice limiting enforcement of that law, and the President issuing new Executive Orders targeting abortion rights:

    “President Trump may say that he cares about law and order, but his recent pardons tell a very different story. He has pardoned over 1,500 individuals who stormed the U.S. Capitol on January 6, 2021. Not only did those individuals try to stop the peaceful transfer of power, many of them violently assaulted law enforcement officers. Now, he has pardoned people whose actions threatened, harassed, and harmed abortion patients, providers, and clinics.  

    California has been and will continue to be a safe haven for reproductive rights. With the news that the Trump Administration will also be limiting enforcement of the federal FACE Act and that the President has signed Executive Orders targeting abortion rights, we will not hesitate to take up the mantle of safety and access that they are abandoning. State law — specifically, the California FACE Act — requires that people have access to abortion care safely, confidentially, and in a timely manner. If any person infringes on that right, they can and will be held accountable by my office or local prosecutors.”  

    BACKGROUND AND RESOURCES

    The California Attorney General’s Office has also put together a training video on the California FACE Act, which can be viewed here. A copy of the training video materials can be accessed here and here.  

    The following resources also provide relevant information: 

    # # #

    MIL OSI USA News