Australia – Page 481 – NewzIntel.com

MIL-OSI China: Xi underscores BRICS’ role in building multipolar world, driving globalization

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

KAZAN, Russia, Oct. 23 — The BRICS mechanism is a pillar in promoting a multipolar world and fostering an inclusive economic globalization, said Chinese President Xi Jinping on Tuesday as leaders gathered in Kazan for the 16th BRICS Summit.

Xi made the remarks while meeting with Russian President Vladimir Putin ahead of the leaders’ formal meetings. He noted that BRICS is the world’s most important platform for solidarity and cooperation between emerging markets and developing countries.

He also voiced his hope to have in-depth discussions with Putin and other leaders participating in the summit on the future development of the BRICS mechanism, so as to secure more opportunities for the Global South.

Putin thanked China for its support during Russia’s presidency of BRICS, stressing that Russia is ready to closely cooperate with China to ensure the success of the first BRICS Summit after its expansion and bolster BRICS cooperation.

Kazan, the capital of Tatarstan and the fifth-largest city in Russia, holds historical and cultural significance. Xi told Putin during their meeting that around 400 years ago, the Great Tea Road that connected the two countries went past Kazan, through which tea leaves from China’s Wuyi Mountain region found their way into many Russian households.

The city is also home to Kazan Federal University, where notable figures like the Russian writer Leo Tolstoy and Russian revolutionary leader Vladimir Lenin studied.

Russian fighter jets escorted Xi’s plane before its landing at the Kazan International Airport around noon on Tuesday. Guards of honor lined both sides of a red carpet to salute Xi, while Russian youths in traditional attire offered him a warm welcome.

Kazan Mayor Ilsur Metshin, one of the Russian officials who greeted Xi at the airport, told Xinhua that the city is honored to host the Chinese president.

During the three-day summit, Xi will attend small- and large-scale leaders’ meetings and the BRICS Plus leaders’ dialogue. He will also have in-depth exchanges with leaders of other countries on the current international situation, BRICS cooperation, the development of the BRICS mechanism and important issues of common concern, according to Chinese Foreign Ministry Spokesperson Mao Ning.

GREATER BRICS

Observers see the BRICS Summit as an opportunity for Global South countries to voice their needs.

Victoria Fedosova, deputy director of the Institute for Strategic Research and Forecasts of the Russian Peoples’ Friendship University, said the very dynamic development of BRICS and the growth in its membership reflect a demand for a platform to address global issues.

“The BRICS mechanism has enormous potential in adjusting the imbalances in global development accumulated over the last 80 years,” said Fedosova.

The New Development Bank (NDB) is a flagship project of BRICS cooperation. As the first multilateral development bank established by emerging economies, the NDB, headquartered in Shanghai, provides financing support for infrastructure development, clean energy, environmental protection, and the building of cyber infrastructure across BRICS countries.

Dilma Rousseff, president of the NDB who is also in Kazan, told Putin during a meeting on Tuesday that the summit is “very important.”

BRICS has emerged as “the core of this multipolar world” alongside other global and regional organizations, said British author and political commentator Carlos Martinez. “It is essential to move away from the dominance of Western voices and allow countries from the Global South to have a meaningful say in international relations.”

“BRICS, with its focus on inclusivity and equality, serves as a shining star of this new type of international relations,” he said.

Zukiswa Roboji, a researcher at Walter Sisulu University in South Africa, said that BRICS has “undoubtedly made notable strides in recent years,” offering emerging economies easier access to financial resources and better opportunities for trade, investment and development.

Experts also highlighted China’s role in BRICS cooperation and development. Timirkhan Alishev, vice rector for International Affairs at Kazan Federal University, told Xinhua that all initiatives introduced by China are rooted in multilateralism, fostering communication and dialogue on multiple levels.

“We see China puts a lot of efforts into developing BRICS,” said Alishev, adding that there are no preconditions for BRICS cooperation as one can begin dialogue on equal footing with everyone.

STRONGER APPEAL

The term BRIC was initially coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, as an investment concept referring to emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

Following last year’s expansion, the BRICS grouping now represents approximately 30 percent of global GDP, nearly half of the world’s population, and one-fifth of global trade.

“Measured by GDP, the BRICS countries have already surpassed the G7 in importance,” said Rousseff in a recent interview with Xinhua.

One of the key priorities of Russia’s BRICS chairmanship is integrating the new members into the BRICS framework, according to the official website. Other areas of practical cooperation include boosting trade and direct investment, as well as fostering a balanced and equitable transition to a low-carbon economy.

As BRICS’ influence grows, its appeal has strengthened. Over 30 countries like Thailand, Malaysia, Türkiye and Azerbaijan have either formally applied for or expressed interest in its membership, while many other developing countries are seeking deeper cooperation with the group.

“Joining BRICS will benefit Thailand in many ways, including advancing cooperation with other developing countries and increasing its influence in the international arena,” said Tang Zhimin, director of China ASEAN Studies at the Bangkok-based Panyapiwat Institute of Management.

BRICS “has become an engine of growth for the world economy and plays an important role in global policymaking,” Tang added.

MIL OSI China News –

January 24, 2025

MIL-OSI: YieldMax™ ETFs Announces Distributions on MSTY (175.64%), AIYY (100.45%), SQY (70.37%), YMAX (67.11%), YMAG (14.96%) and Others

Source: GlobeNewswire (MIL-OSI)

CHICAGO and MILWAUKEE and NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — YieldMax™ today announced distributions for the YieldMax™ ETFs listed in the table below.

ETF Ticker¹	ETF Name	Reference Asset	Distribution per Share	Distribution Frequency	Distribution Rate^2,4,5	30-Day SEC Yield³	Ex-Date & Record Date	Payment Date
YMAX	YieldMax™ Universe Fund of Option Income ETFs	Multiple	$0.2268	*Weekly*	67.11%	62.93%	10/24/2024	10/25/2024
YMAG	YieldMax™ Magnificent 7 Fund of Option Income ETFs	Multiple	$0.0545	*Weekly*	14.96%	50.85%	10/24/2024	10/25/2024
MSTY	YieldMax™ MSTR Option Income Strategy ETF	MSTR	$4.1981	Every 4 Weeks	175.64%	0.00%	10/24/2024	10/25/2024
YQQQ	YieldMax™ Short N100 Option Income Strategy ETF	N100	$0.3550	Every 4 Weeks	24.82%	3.63%	10/24/2024	10/25/2024
AMZY	YieldMax™ AMZN Option Income Strategy ETF	AMZN	$0.7632	Every 4 Weeks	50.32%	3.27%	10/24/2024	10/25/2024
APLY	YieldMax™ AAPL Option Income Strategy ETF	AAPL	$0.3428	Every 4 Weeks	24.35%	3.17%	10/24/2024	10/25/2024
AIYY	YieldMax™ AI Option Income Strategy ETF	AI	$0.7241	Every 4 Weeks	100.45%	3.76%	10/24/2024	10/25/2024
DISO	YieldMax™ DIS Option Income Strategy ETF	DIS	$0.5146	Every 4 Weeks	40.88%	3.41%	10/24/2024	10/25/2024
SQY	YieldMax™ SQ Option Income Strategy ETF	SQ	$1.0201	Every 4 Weeks	70.37%	3.44%	10/24/2024	10/25/2024
SMCY	YieldMax™ SMCI Option Income Strategy ETF	SMCI	$5.3541	Every 4 Weeks	_	_	10/24/2024	10/25/2024
Scheduled for next week: TSLY CRSH GOOY YBIT OARK XOMO SNOY TSMY

The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling (833) 378-0717.

Note: DIPS, FIAT, CRSH and YQQQ are hereinafter referred to as the “Short ETFs”.

Distributions are not guaranteed. The Distribution Rate and 30-Day SEC Yield are not indicative of future distributions, if any, on the ETFs. In particular, future distributions on any ETF may differ significantly from its Distribution Rate or 30-Day SEC Yield. You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from period to period and may be zero. Accordingly, the Distribution Rate and 30-Day SEC Yield will change over time, and such change may be significant.

Investors in the Funds will not have rights to receive dividends or other distributions with respect to the underlying reference asset(s).

¹ All YieldMax™ ETFs (except YMAX, YMAG and ULTY) have a gross expense ratio of 0.99%. YMAX and YMAG have a Management Fee of 0.29% and Acquired Fund Fees and Expenses of 0.99% for a gross expense ratio of 1.28%. “Acquired Fund Fees and Expenses” are indirect fees and expenses that the Fund incurs from investing in the shares of other investment companies, namely other YieldMax™ ETFs. ULTY has a gross expense ratio of 1.24% but the investment adviser has agreed to a 0.10% fee waiver through at least February 28, 2025.

² The Distribution Rate shown is as of close on October 22, 2024. The Distribution Rate is the annual distribution rate an investor would receive if the most recent distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by annualizing an ETF’s Distribution per Share and dividing such annualized amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions may also include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease an ETF’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. These Distribution Rates may be caused by unusually favorable market conditions and may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this performance may be repeated in the future.

³ The 30-Day SEC Yield represents net investment income, which excludes option income, earned by such ETF over the 30-Day period ended September 30. 2024, expressed as an annual percentage rate based on such ETF’s share price at the end of the 30-Day period. As of such date, the ULTY subsidized and unsubsidized 30-Day SEC Yields were 0.00% and 0.00%, respectively. The subsidized yield reflects fee waivers in effect while the unsubsidized yield does not adjust for any fee waivers in effect.

⁴ Each ETF’s strategy (except those of the Short ETFs) will cap potential gains if its reference asset’s shares increase in value, yet subjects an investor to all potential losses if the reference asset’s shares decrease in value. Such potential losses may not be offset by income received by the ETF. Each Short ETF’s strategy will cap potential gains if its reference asset decreases in value, yet subjects an investor to all potential losses if the reference asset increases in value. Such potential losses may not be offset by income received by the ETF.

⁵ As of the date hereof, distributions for the following ETFs have included return of investor capital: TSLY, OARK, APLY, AMZY, NVDY, GOOY, JPMO, XOMO, PYPY, CONY, DISO, FBY, MSFO, NFLY, SQY, AMDY, MRNY, AIYY, MSTY, ULTY, YMAX, YMAG, YBIT, SNOY, CRSH, GDXY and FIAT. For additional information, please visit http://www.YieldMaxETFs.com/TaxInfo.

Each Fund has a limited operating history and while each Fund’s objective is to provide current income, there is no guarantee the Fund will make a distribution. Distributions are likely to vary greatly in amount.

Standardized Performance

For YMAX, click here. For YMAG, click here. For TSLY, click here. For OARK, click here. For APLY, click here. For NVDY, click here. For AMZY, click here. For FBY, click here. For GOOY, click here. For NFLY, click here. For CONY, click here. For MSFO, click here. For DISO, click here. For XOMO, click here. For JPMO, click here. For AMDY, click here. For PYPY, click here. For SQY, click here. For MRNY, click here. For AIYY, click here. For MSTY, click here. For ULTY, click here. For YBIT, click here. For CRSH, click here. For GDXY, click here. For SNOY, click here. For ABNY, click here. For FIAT, click here. For DIPS, click here. For BABO, click here. For YQQQ, click here. For TSMY, click here. For SMCY, click here. For PLTY, click here

Prospectuses

Click here.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information are in the prospectus. Please read the prospectuses carefully before you invest.

There is no guarantee that any Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment in any such Fund.

Tidal Financial Group is the adviser for all YieldMax™ ETFs and ZEGA Financial is their sub-adviser.

THE FUND, TRUST, AND SUB-ADVISER ARE NOT AFFILIATED WITH ANY UNDERLYING REFERNCE ASSET.

Risk Disclosures (applicable to all YieldMax ETFs referenced above, except the Short ETFs)

YMAX and YMAG generally invest in other YieldMax™ ETFs. As such, these two Funds are subject to the risks listed in this section, which apply to all the YieldMax™ ETFs they may hold from time to time.

Investing involves risk. Principal loss is possible.

Call Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s call writing strategy will impact the extent that the Fund participates in the positive price returns of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold call options and over longer time periods.

Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given period. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings.

Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

Price Participation Risk. The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by the underlying reference asset over the Call Period.

Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security (ARKK, TSLA, AAPL, NVDA, AMZN, META, GOOGL, NFLX, COIN, MSFT, DIS, XOM, JPM, AMD, PYPL, SQ, MRNA, AI, MSTR, Bitcoin ETP, GDX®, SNOW, ABNB, BABA, TSM, SMCI, PLTR), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

Risk Disclosures (applicable only to BABO and TSMY)

Currency Risk: Indirect exposure to foreign currencies subjects the Fund to the risk that currencies will decline in value relative to the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad.

Depositary Receipts Risk: The securities underlying BABO and TSMY are American Depositary Receipts (“ADRs”). Investment in ADRs may be less liquid than the underlying shares in their primary trading market.

Foreign Market and Trading Risk: The trading markets for many foreign securities are not as active as U.S. markets and may have less governmental regulation and oversight.

Foreign Securities Risk: Investments in securities of non-U.S. issuers involve certain risks that may not be present with investments in securities of U.S. issuers, such as risk of loss due to foreign currency fluctuations or to political or economic instability, as well as varying regulatory requirements applicable to investments in non-U.S. issuers. There may be less information publicly available about a non-U.S. issuer than a U.S. issuer. Non-U.S. issuers may also be subject to different regulatory, accounting, auditing, financial reporting and investor protection standards than U.S. issuers.

Risk Disclosures (applicable only to GDXY)

Risk of Investing in Foreign Securities. The Fund is exposed indirectly to the securities of foreign issuers selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies. Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities.

Risk of Investing in Gold and Silver Mining Companies. The Fund is exposed indirectly to gold and silver mining companies selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies.

The Fund invests in options contracts based on the value of the VanEck Gold Miners ETF (GDX®), which subjects the Fund to some of the same risks as if it owned GDX®, as well as the risks associated with Canadian, Australian and Emerging Market Issuers, and Small-and Medium-Capitalization companies.

Risk Disclosures (applicable only to YBIT)

YBIT does not invest directly in Bitcoin or any other digital assets. YBIT does not invest directly in derivatives that track the performance of Bitcoin or any other digital assets. YBIT does not invest in or seek direct exposure to the current “spot” or cash price of Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than YBIT.

Bitcoin Investment Risk: The Fund’s indirect investment in Bitcoin, through holdings in one or more Underlying ETPs, exposes it to the unique risks of this emerging innovation. Bitcoin’s price is highly volatile, and its market is influenced by the changing Bitcoin network, fluctuating acceptance levels, and unpredictable usage trends.

Digital Assets Risk: Digital assets like Bitcoin, designed as mediums of exchange, are still an emerging asset class. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility. Potentially No 1940 Act Protections. As of the date of this Prospectus, there is only a single eligible Underlying ETP, and it is an investment company subject to the 1940 Act.

Bitcoin ETP Risk: The Fund invests in options contracts that are based on the value of the Bitcoin ETP. This subjects the Fund to certain of the same risks as if it owned shares of the Bitcoin ETP, even though it does not. Bitcoin ETPs are subject, but not limited, to significant risk and heightened volatility. An investor in a Bitcoin ETP may lose their entire investment. Bitcoin ETPs are not suitable for all investors. In addition, not all Bitcoin ETPs are registered under the Investment Company Act of 1940. Those Bitcoin ETPs that are not registered under such statute are therefore not subject to the same regulations as exchange traded products that are so registered.

Risk Disclosures (applicable only to the Short ETFs)

Investing involves risk. Principal loss is possible.

Price Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the value of the underlying reference asset. This strategy subjects the Fund to certain of the same risks as if it shorted the underlying reference asset, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the value of the underlying reference asset, the Fund is subject to the risk that the value of the underlying reference asset increases. If the value of the underlying reference asset increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses.

Put Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s put writing (selling) strategy will impact the extent that the Fund participates in decreases in the value of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold put options and over longer time periods.

Purchased OTM Call Options Risk. The Fund’s strategy is subject to potential losses if the underlying reference asset increases in value, which may not be offset by the purchase of out-of-the-money (OTM) call options. The Fund purchases OTM calls to seek to manage (cap) the Fund’s potential losses from the Fund’s short exposure to the underlying reference asset if it appreciates significantly in value. However, the OTM call options will cap the Fund’s losses only to the extent that the value of the underlying reference asset increases to a level that is at or above the strike level of the purchased OTM call options. Any increase in the value of the underlying reference asset to a level that is below the strike level of the purchased OTM call options will result in a corresponding loss for the Fund. For example, if the OTM call options have a strike level that is approximately 100% above the then-current value of the underlying reference asset at the time of the call option purchase, and the value of the underlying reference asset increases by at least 100% during the term of the purchased OTM call options, the Fund will lose all its value. Since the Fund bears the costs of purchasing the OTM calls, such costs will decrease the Fund’s value and/or any income otherwise generated by the Fund’s investment strategy.

Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying reference asset, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given period. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings.

Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

Price Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will participate in decreases in value experienced by the underlying reference asset over the Put Period.

Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, for any Fund that focuses on an individual security (e.g., TSLA, COIN, NVDA), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

Risk Disclosures (applicable only to YQQQ)

Index Overview. The Nasdaq 100 Index is a benchmark index that includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, based on market capitalization.

Index Level Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the Index level. This strategy subjects the Fund to certain of the same risks as if it shorted the Index, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the Index level, the Fund is subject to the risk that the Index level increases. If the Index level increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks: innovation and technological advancement; strong market presence of Index constituent companies; adaptability to global market trends; and resilience and recovery potential.

Index Level Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will benefit from decreases in the Index level experienced over the Put Period. This means that if the Index level experiences a decrease in value below the strike level of the sold put options during a Put Period, the Fund will likely not experience that increase to the same extent and any Fund gains may significantly differ from the level of the Index losses over the Put Period. Additionally, because the Fund is limited in the degree to which it will participate in decreases in value experienced by the Index level over each Put Period, but has significant negative exposure to any increases in value experienced by the Index level over the Put Period, the NAV of the Fund may decrease over any given time period. The Fund’s NAV is dependent on the value of each options portfolio, which is based principally upon the inverse of the performance of the Index level. The Fund’s ability to benefit from the Index level decreases will depend on prevailing market conditions, especially market volatility, at the time the Fund enters into the sold put option contracts and will vary from Put Period to Put Period. The value of the options contracts is affected by changes in the value and dividend rates of component companies that comprise the Index, changes in interest rates, changes in the actual or perceived volatility of the Index and the remaining time to the options’ expiration, as well as trading conditions in the options market. As the Index level changes and time moves towards the expiration of each Put Period, the value of the options contracts, and therefore the Fund’s NAV, will change. However, it is not expected for the Fund’s NAV to directly inversely correlate on a day-to-day basis with the returns of the Index level. The amount of time remaining until the options contract’s expiration date affects the impact that the value of the options contracts has on the Fund’s NAV, which may not be in full effect until the expiration date of the Fund’s options contracts. Therefore, while changes in the Index level will result in changes to the Fund’s NAV, the Fund generally anticipates that the rate of change in the Fund’s NAV will be different than the inverse of the changes experienced by the Index level.

YieldMax™ ETFs are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Tidal Financial Group, YieldMax™ ETFs or ZEGA Financial.

The MIL Network –

January 24, 2025

MIL-OSI: EBC Financial Group and the University of Oxford’s Department of Economics Announce WERD Episode on Macroeconomics and Climate

Source: GlobeNewswire (MIL-OSI)

OXFORD, United Kingdom, Oct. 23, 2024 (GLOBE NEWSWIRE) — EBC Financial Group (EBC) is proud to announce its continued collaboration with the University of Oxford’s Department of Economics for the 2024-2025 edition of the acclaimed “What Economists Really Do” (WERD) webinar series. The upcoming event will be the first WERD event to feature a dedicated panel discussion session in a hybrid setting, titled “Sustaining Sustainability: Balancing Economic Growth and Climate Resilience”. It also marks the second collaboration between EBC and the University of Oxford’s Department of Economics this year, following an earlier success in March. EBC’s ongoing collaboration with the University of Oxford’s Department of Economics builds on the success of their previous WERD webinar, which focused on The Economics of Tax Evasion. That session explored the impact of tax evasion on both global and local economies, highlighting the importance of financial literacy in addressing complex economic issues.

The hybrid event will take place on 14 November 2024 at the Sir Michael Dummett Lecture Theatre, Christ Church College, and will bring together prominent thought leaders to discuss the intersection of economic policies and environmental sustainability.

As global climate challenges intensify, this event comes at a critical time when the financial sector’s role in fostering sustainable development is under increased scrutiny. In today’s economic landscape, aligning financial strategies with environmental stewardship is essential. Through sponsoring this upcoming WERD episode, EBC will shift its focus toward addressing the pressing issues of climate resilience and sustainable economic growth. The panel discussion will explore how macroeconomic policies can help address some of the world’s most urgent environmental challenges while ensuring economic stability. This timely dialogue underscores EBC’s commitment to fostering discussions on how financial markets can lead the charge in sustainability.

David Barrett, CEO of EBC Financial Group (UK) Ltd, expressed his enthusiasm for the ongoing collaboration: “We are excited to partner once more with the University of Oxford’s Department of Economics for the second episode of the ‘What Economists Really Do’ webinar series for the 2024-2025 edition. This collaboration embodies our commitment to advancing academic research and addressing the pressing issue of climate change through macroeconomic perspectives. At EBC Financial Group, we believe in the power of strategic partnerships to drive meaningful change, and we are proud to support such an esteemed partner in a collective mission to shape a more sustainable future.”

Banu Demir Pakel, session moderator and the Associate Head of External Engagement and Associate Professor of Economics, added: “We are pleased to welcome EBC Financial Group back to sponsor another special episode of ‘What Economists Really Do’ (WERD). In the previous WERD episode, we welcomed David Barrett, CEO of EBC Financial Group (UK) Ltd to discuss ‘The Economics of Tax Evasion’—proving how invaluable industry insights can be to an academic discussion. On the basis of this success, we are looking forward to hosting a larger hybrid panel event with further guests from the industry, plus a keynote lecture from Professor Andrea Chiavari on the topic of ‘Macroeconomics and Climate.’ The Department of Economics is proud to facilitate thought-leadership discussions between academia and industry, and we are grateful for EBC’s ongoing support. We look forward to a prosperous event.”

The University of Oxford’s Department of Economics is globally celebrated for its rigorous academic research and significant contributions to economic policy. Attendees will gain valuable insights into how macroeconomic principles can align with sustainable growth objectives, informed by perspectives from both academia and the financial sector. With discussions that bridge the gap between theory and practice, this event will provide a forward-looking view of how economic policies can uplift environmental resilience and ensure global economic stability. Participants will also hear from industry leaders about the practical steps businesses and institutions can and are taking to achieve sustainable growth.

Embracing a Broader Vision of Sustainable Development
EBC Financial Group’s support for this initiative comes at a time of strategic global expansion. With a growing presence in key financial hubs such as London, Hong Kong, Tokyo, Singapore, and Sydney, as well as emerging markets in Southeast Asia, Latin America, Africa, and India, EBC is committed to empowering local markets with financial solutions that are both robust and sustainable. By engaging with leading academic institutions like the University of Oxford’s Department of Economics, EBC aims to strengthen its role as a catalyst for positive change in regions that are traditionally underserved by major financial institutions.

The proceeds from this year’s WERD event will support the Department and its goal to produce leading research and world-class education. Registration for the event is now open, offering both in-person and online access to accommodate a global audience. To reserve your spot, please visit this link.

About EBC Financial Group
Founded in the esteemed financial district of London, EBC Financial Group (EBC) is renowned for its comprehensive suite of services that includes financial brokerage, asset management, and comprehensive investment solutions. EBC has quickly established its position as a global brokerage firm, with an extensive presence in key financial hubs such as London, Hong Kong, Tokyo, Singapore, Sydney, the Cayman Islands, and across emerging markets in Latin America, Southeast Asia, Africa, and India. EBC caters to a diverse clientele of retail, professional, and institutional investors worldwide.

Recognised by multiple awards, EBC prides itself on adhering to the leading levels of ethical standards and international regulation. EBC Financial Group’s subsidiaries are regulated and licensed in their local jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK’s Financial Conduct Authority (FCA), EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA), EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia’s Securities and Investments Commission (ASIC).

At the core of EBC Group are seasoned professionals with over 30 years of profound experience in major financial institutions, having adeptly navigated through significant economic cycles from the Plaza Accord to the 2015 Swiss franc crisis. EBC champions a culture where integrity, respect, and client asset security are paramount, ensuring that every investor engagement is treated with the utmost seriousness it deserves.

EBC is the Official Foreign Exchange Partner of FC Barcelona, offering specialised services in regions such as Asia, LATAM, the Middle East, Africa, and Oceania. EBC is also a partner of United to Beat Malaria, a campaign of the United Nations Foundation, aiming to improve global health outcomes. Starting February 2024, EBC supports the ‘What Economists Really Do’ public engagement series by Oxford University’s Department of Economics, demystifying economics, and its application to major societal challenges to enhance public understanding and dialogue.

https://www.ebc.com/

Media Contact:

Savitha Ravindran
Global Public Relations Manager (EMEA, LATAM)
savitha.ravindran@ebc.com

Chyna Elvina
Global Public Relations Manager (APAC, LATAM)
chyna.elvina@ebc.com

Douglas Chew
Global Public Relations Lead
douglas.chew@ebc.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aaaa905a-4c02-44a0-bf7d-b8be3dec4b36

The MIL Network –

January 24, 2025

MIL-OSI: Lloyds Bank PLC: 2024 Q3 Interim Management Statement

Source: GlobeNewswire (MIL-OSI)

LONDON, Oct. 23, 2024 (GLOBE NEWSWIRE) —

Lloyds Bank plc
Q3 2024 Interim Management Statement
23 October 2024

Member of the Lloyds Banking Group

FINANCIAL REVIEW

Income statement

The Group’s profit before tax for the first nine months of 2024 was £3,927 million, 27 per cent lower than the same period in 2023. This was driven by lower net interest income and higher operating expenses, partly offset by a lower impairment charge. Profit after tax was £2,727 million (nine months to 30 September 2023 £3,975 million).

Total income for the first nine months of 2024 was £12,613 million, a decrease of 8 per cent on the same period in 2023. Within this, net interest income of £9,378 million was 10 per cent lower on the prior year, driven by a lower margin. The lower margin reflected anticipated headwinds due to deposit churn and asset margin compression, particularly in the mortgage book as it refinances in a lower margin environment. These factors were partially offset by benefits from higher structural hedge earnings as balances are reinvested in the higher rate environment.

Other income amounted to £3,235 million in the nine months to 30 September 2024 compared to £3,268 million in the same period in 2023, with improved UK Motor Finance performance, reflecting growth following the acquisition of Tusker in the first quarter of 2023, increased fleet size and higher average rental value, partially offset by the impact of changes to commission arrangements with Scottish Widows.

Operating expenses of £8,392 million were 13 per cent higher than in the prior year. This includes the impacts of higher operating lease depreciation, largely as a result of fleet growth, the depreciation of higher value vehicles and declines in used electric car prices, alongside higher ongoing strategic investment, accelerated severance charges and inflationary pressure. It also includes c.£0.1 billion relating to the sector-wide change in the charging approach for the Bank of England Levy taken in the first quarter. In the nine months to 30 September 2024, the Group recognised remediation costs of £118 million (nine months to 30 September 2023: £127 million), largely in relation to pre-existing programmes, with no further charges in respect of the FCA review of historical motor finance commission arrangements. The FCA confirmed in September 2024 its intention to set out next steps in its review in May 2025, including its assessment of the outcome of the Judicial Review and Court of Appeal decisions involving other market participants; the Group will assess the impact, if any, of these decisions.

The impairment charge was £294 million compared with a £881 million charge in the nine months to 30 September 2023. The decrease reflects a larger credit from improvements to the Group’s economic outlook in the first half of the year, notably house price growth and through changes to the severe downside scenario methodology. The charge also benefitted from strong portfolio performance, a large debt sale write-back, and a release in Commercial Banking from loss rates used in the model. Asset quality remains strong with resilient credit performance.

Balance sheet

Total assets were £4,207 million higher at £609,612 million at 30 September 2024 compared to £605,405 million at 31 December 2023. Financial assets at amortised cost were £15,406 million higher at £503,477 million compared to £488,071 million at 31 December 2023 with increases in reverse repurchase agreements of £11,128 million and loans and advances to customers of £7,355 million, partly offset by a reduction in loans and advances to banks of £2,919 million. The increase in reverse repurchase agreements and the decrease in cash and balances at central banks by £17,984 million to £39,925 million reflected a change in the mix of liquidity holdings. The increase in loans and advances to customers included growth in UK mortgages, UK Retail unsecured loans, credit cards and the European retail business, partly offset by government-backed lending repayments in Commercial Banking. Financial assets at fair value through other comprehensive income were £5,032 million higher reflecting a change in the mix of liquidity holdings. Other assets increased by £1,864 million to £28,925 million, driven by higher settlement balances and higher operating lease assets reflecting continued motor finance growth.

Total liabilities were £4,390 million higher at £569,364 million compared to £564,974 million at 31 December 2023. Customer deposits at £446,311 million have increased by £4,358 million since the end of 2023, driven by inflows to limited withdrawal and fixed term savings products, partly offset by a reduction in current account balances and an expected significant outflow in Commercial Banking. In addition, repurchase agreements at £41,370 million have increased by £3,668 million since the end of 2023. Debt securities in issue at amortised cost decreased by £7,369 million to £45,080 million at 30 September 2024. Amounts due to fellow Lloyds Banking Group undertakings increased by £1,510 million to £4,442 million at 30 September 2024. Other liabilities increased by £3,042 million to £12,926 million, driven by higher settlement balances.

Total equity was £40,248 million at 30 September 2024 was broadly stable compared to £40,431 million at 31 December 2023, with the profit for the period largely offset by interim dividends of £3.4 billion, pension revaluations and movements in the cash flow hedging reserve.

FINANCIAL REVIEW (continued)

Capital

The Group’s common equity tier 1 (CET1) capital ratio reduced to 13.6 per cent at 30 September 2024 (31 December 2023: 14.4 per cent). This largely reflected profit for the period, offset by the payment of interim ordinary dividends, the accrual for foreseeable ordinary dividends and an increase in risk-weighted assets.

The Group’s total capital ratio reduced to 19.8 per cent (31 December 2023: 20.5 per cent). The issuance of AT1 and Tier 2 capital instruments was more than offset by the reduction in CET1 capital, the reduction in eligible provisions recognised through Tier 2 capital, the impact of regulatory amortisation and foreign exchange on Tier 2 capital instruments and the increase in risk-weighted assets.

Risk-weighted assets have increased by £2,350 million to £184,910 million at 30 September 2024 (31 December 2023: £182,560 million). This reflects the impact of Retail lending growth, Retail secured CRD IV model updates and other movements, partly offset by optimisation including capital efficient securitisation activity.

The Group’s UK leverage ratio reduced to 5.3 per cent (31 December 2023: 5.6 per cent). This reflected both the reduction in the total tier 1 capital position and an increase in the leverage exposure measure, principally related to the increase in securities financing transactions and other balance sheet movements.


CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Nine months ended 30 Sep 2024 £m		Nine months ended 30 Sep 2023 £m

Net interest income	9,378		10,432
Other income	3,235		3,268
Total income	12,613		13,700
Operating expenses	(8,392	)	(7,457	)
Impairment	(294	)	(881	)
Profit before tax	3,927		5,362
Tax expense	(1,200	)	(1,387	)
Profit for the period	2,727		3,975

Profit attributable to ordinary shareholders	2,454		3,708
Profit attributable to other equity holders	256		249
Profit attributable to equity holders	2,710		3,957
Profit attributable to non-controlling interests	17		18
Profit for the period	2,727		3,975


CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

	At 30 Sep 2024 £m	At 31 Dec 2023 £m

Assets
Cash and balances at central banks	39,925	57,909
Financial assets at fair value through profit or loss	1,990	1,862
Derivative financial instruments	2,926	3,165
Loans and advances to banks	5,891	8,810
Loans and advances to customers	440,479	433,124
Reverse repurchase agreements	43,879	32,751
Debt securities	12,569	12,546
Due from fellow Lloyds Banking Group undertakings	659	840
Financial assets at amortised cost	503,477	488,071
Financial assets at fair value through other comprehensive income	32,369	27,337
Other assets	28,925	27,061
Total assets	609,612	605,405

Liabilities
Deposits from banks	3,474	3,557
Customer deposits	446,311	441,953
Repurchase agreements	41,370	37,702
Due to fellow Lloyds Banking Group undertakings	4,442	2,932
Financial liabilities at fair value through profit or loss	4,964	5,255
Derivative financial instruments	3,583	4,307
Debt securities in issue at amortised cost	45,080	52,449
Other liabilities	12,926	9,884
Subordinated liabilities	7,214	6,935
Total liabilities	569,364	564,974

Equity
Share capital	1,574	1,574
Share premium account	600	600
Other reserves	2,904	2,395
Retained profits	29,667	30,786
Ordinary shareholders’ equity	34,745	35,355
Other equity instruments	5,428	5,018
Non-controlling interests	75	58
Total equity	40,248	40,431
Total equity and liabilities	609,612	605,405

ADDITIONAL FINANCIAL INFORMATION

1. Basis of presentation

This release covers the results of Lloyds Bank plc together with its subsidiaries (the Group) for the nine months ended 30 September 2024.

Accounting policies

The accounting policies are consistent with those applied by the Group in its 2023 Annual Report and Accounts

2. Capital

The Group’s Q3 2024 Interim Pillar 3 Disclosures can be found at http://www.lloydsbankinggroup.com/investors/financial-downloads.html.

3. UK economic assumptions

Base case and MES economic assumptions

The Group’s base case scenario is for a slow expansion in GDP and a modest rise in the unemployment rate alongside small gains in residential and commercial property prices. Following a reduction in inflationary pressures, cuts in UK Bank Rate are expected to continue during 2024 and 2025. Risks around this base case economic view lie in both directions and are largely captured by the generation of alternative economic scenarios.

The Group has taken into account the latest available information at the reporting date in defining its base case scenario and generating alternative economic scenarios. The scenarios include forecasts for key variables as of the third quarter of 2024. Actuals for this period, or restatements of past data, may have since emerged prior to publication and have not been included, including specifically in the Quarterly National Accounts release of 30 September 2024. The Group’s approach to generating alternative economic scenarios is set out in detail in note 19 to the financial statements for the year ended 31 December 2023. For September 2024, the Group continues to judge it appropriate to include a non-modelled severe downside scenario for ECL calculations as explained in note 12 of the Group’s 2024 Half-Year news release.

UK economic assumptions – base case scenario by quarter

Key quarterly assumptions made by the Group in the base case scenario are shown below. Gross domestic product is presented quarter-on-quarter. House price growth, commercial real estate price growth and CPI inflation are presented year-on-year, i.e. from the equivalent quarter in the previous year. Unemployment rate and UK Bank Rate are presented as at the end of each quarter.

At 30 September 2024	First quarter 2024 %		Second quarter 2024 %		Third quarter 2024 %		Fourth quarter 2024 %	First quarter 2025 %	Second quarter 2025 %	Third quarter 2025 %	Fourth quarter 2025 %

Gross domestic product	0.7		0.6		0.3		0.3	0.3	0.3	0.4	0.4
Unemployment rate	4.3		4.2		4.3		4.5	4.6	4.7	4.8	4.8
House price growth	0.4		1.8		5.3		3.1	3.2	3.6	2.4	2.0
Commercial real estate price growth	(5.3	)	(4.7	)	(2.5	)	0.3	1.4	1.9	1.6	1.7
UK Bank Rate	5.25		5.25		5.00		4.75	4.50	4.25	4.00	4.00
CPI inflation	3.5		2.1		2.1		2.7	2.4	2.9	2.7	2.3

ADDITIONAL FINANCIAL INFORMATION (continued)

3. UK economic assumptions (continued)

UK economic assumptions – scenarios by year

Key annual assumptions made by the Group are shown below. Gross domestic product and CPI inflation are presented as an annual change, house price growth and commercial real estate price growth are presented as the growth in the respective indices within the period. Unemployment rate and UK Bank Rate are averages for the period.

At 30 September 2024

2024
%

2025
%

2026
%

2027
%

2028
%

2024-2028
average
%

Upside

Gross domestic product

1.2

2.4

1.9

1.5

1.4

1.7

Unemployment rate

4.2

3.3

2.8

2.7

2.8

3.1

House price growth

3.5

4.6

7.1

6.4

5.1

5.3

Commercial real estate price growth

1.6

9.0

4.2

1.8

0.7

3.4

UK Bank Rate

5.06

5.08

5.16

5.34

5.58

5.24

CPI inflation

2.6

2.7

2.4

2.8

2.7

Base case

Gross domestic product

1.1

1.3

1.5

1.4

Unemployment rate

4.3

4.7

4.5

House price growth

3.1

2.0

1.0

1.5

2.1

2.0

Commercial real estate price growth

0.3

1.7

2.1

0.7

0.3

1.0

UK Bank Rate

5.06

4.19

3.63

3.50

3.98

CPI inflation

2.6

2.1

2.2

2.1

2.3

Downside

Gross domestic product

1.0

(0.3

)

0.4

1.3

1.5

0.8

Unemployment rate

4.4

6.5

7.3

7.1

6.5

House price growth

2.9

(0.2

)

(6.1

)

(5.8

)

(2.9

)

(2.5

)

Commercial real estate price growth

(0.7

)

(6.2

)

(1.7

)

(1.9

)

(1.9

)

(2.5

)

UK Bank Rate

5.06

3.11

1.48

0.96

0.65

2.25

CPI inflation

2.6

1.9

1.5

1.1

2.0

Severe downside

Gross domestic product

0.9

(2.0

)

(0.1

)

1.1

1.4

0.2

Unemployment rate

4.6

8.6

9.9

9.7

8.5

House price growth

2.3

(2.5

)

(13.5

)

(12.6

)

(8.3

)

(7.1

)

Commercial real estate price growth

(2.7

)

(16.5

)

(6.5

)

(6.5

)

(5.1

)

(7.6

)

UK Bank Rate – modelled

5.06

1.83

0.23

0.06

0.02

1.44

UK Bank Rate – adjusted¹

5.13

3.67

2.55

2.16

1.88

3.08

CPI inflation – modelled

2.6

1.5

0.7

0.1

1.5

CPI inflation – adjusted¹

2.6

3.5

1.8

1.3

0.9

2.0

Probability-weighted

Gross domestic product

1.1

0.8

1.1

1.4

1.2

Unemployment rate

4.3

5.2

5.4

5.3

5.1

House price growth

3.1

1.7

(0.7

)

(0.6

)

0.5

0.8

Commercial real estate price growth

0.1

(0.3

)

0.7

(0.5

)

(0.8

)

(0.1

)

UK Bank Rate – modelled

5.06

3.90

3.10

2.95

2.92

3.59

UK Bank Rate – adjusted¹

5.07

4.08

3.33

3.15

3.11

3.75

CPI inflation – modelled

2.6

2.0

1.8

2.2

CPI inflation – adjusted¹

2.6

2.7

2.1

1.9

2.3

¹ The adjustment to UK Bank Rate and CPI inflation in the severe downside is considered to better reflect the risks to the Group’s base case view in an economic environment where the risks of supply and demand shocks are seen as more balanced.

ADDITIONAL FINANCIAL INFORMATION (continued)

4. Loans and advances to customers and expected credit loss allowance

At 30 September 2024

Stage 1
£m

Stage 2
£m

Stage 3
£m

POCI
£m

Total
£m

Stage 2
as % of
total

Stage 3
as % of
total

Loans and advances to customers

UK mortgages

271,138

28,389

4,545

6,949

311,021

9.1

1.5

Credit cards

13,429

2,620

262

–

16,311

16.1

1.6

Loans and overdrafts

8,839

1,374

173

–

10,386

13.2

1.7

UK Motor Finance

14,390

2,314

119

–

16,823

13.8

0.7

Other

16,702

513

150

–

17,365

3.0

0.9

Retail

324,498

35,210

5,249

6,949

371,906

9.5

1.4

Small and Medium Businesses

26,393

3,430

1,303

–

31,126

11.0

4.2

Corporate and Institutional Banking

37,564

2,306

637

–

40,507

5.7

1.6

Commercial Banking

63,957

5,736

1,940

–

71,633

8.0

2.7

Other¹

260

–

260

–

Total gross lending

388,715

40,946

7,189

6,949

443,799

9.2

1.6

ECL allowance on drawn balances

(764

)

(1,228

)

(1,106

)

(222

)

(3,320

)

Net balance sheet carrying value

387,951

39,718

6,083

6,727

440,479

Customer related ECL allowance (drawn and undrawn)

UK mortgages

86

321

339

222

968

Credit cards

207

351

129

–

687

Loans and overdrafts

170

242

111

–

523

UK Motor Finance²

169

105

68

–

342

Other

15

18

42

–

75

Retail

647

1,037

689

222

2,595

Small and Medium Businesses

138

190

160

–

488

Corporate and Institutional Banking

126

125

259

–

510

Commercial Banking

264

315

419

–

998

Other

–

Total

911

1,352

1,108

222

3,593

Customer related ECL allowance (drawn and undrawn) as a percentage of loans and advances to customers

UK mortgages

–

1.1

7.5

3.2

0.3

Credit cards

1.5

13.4

49.2

–

4.2

Loans and overdrafts

1.9

17.6

64.2

–

5.0

UK Motor Finance

1.2

4.5

57.1

–

2.0

Other

0.1

3.5

28.0

–

0.4

Retail

0.2

2.9

13.1

3.2

0.7

Small and Medium Businesses

0.5

5.5

12.3

–

1.6

Corporate and Institutional Banking

0.3

5.4

40.7

–

1.3

Commercial Banking

0.4

5.5

21.6

–

1.4

Other

–

Total

0.2

3.3

15.4

3.2

0.8

¹ Contains central fair value hedge accounting adjustments.

² UK Motor Finance includes £170 million relating to provisions against residual values of vehicles subject to finance leases.

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and section 27A of the US Securities Act of 1933, as amended, with respect to the business, strategy, plans and/or results of Lloyds Bank plc together with its subsidiaries (the Lloyds Bank Group) and its current goals and expectations. Statements that are not historical or current facts, including statements about the Lloyds Bank Group’s or its directors’ and/or management’s beliefs and expectations, are forward-looking statements. Words such as, without limitation, ‘believes’, ‘achieves’, ‘anticipates’, ‘estimates’, ‘expects’, ‘targets’, ‘should’, ‘intends’, ‘aims’, ‘projects’, ‘plans’, ‘potential’, ‘will’, ‘would’, ‘could’, ‘considered’, ‘likely’, ‘may’, ‘seek’, ‘estimate’, ‘probability’, ‘goal’, ‘objective’, ‘deliver’, ‘endeavour’, ‘prospects’, ‘optimistic’ and similar expressions or variations on these expressions are intended to identify forward-looking statements. These statements concern or may affect future matters, including but not limited to: projections or expectations of the Lloyds Bank Group’s future financial position, including profit attributable to shareholders, provisions, economic profit, dividends, capital structure, portfolios, net interest margin, capital ratios, liquidity, risk-weighted assets (RWAs), expenditures or any other financial items or ratios; litigation, regulatory and governmental investigations; the Lloyds Bank Group’s future financial performance; the level and extent of future impairments and write-downs; the Lloyds Bank Group’s ESG targets and/or commitments; statements of plans, objectives or goals of the Lloyds Bank Group or its management and other statements that are not historical fact and statements of assumptions underlying such statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future. Factors that could cause actual business, strategy, targets, plans and/or results (including but not limited to the payment of dividends) to differ materially from forward-looking statements include, but are not limited to: general economic and business conditions in the UK and internationally; acts of hostility or terrorism and responses to those acts, or other such events; geopolitical unpredictability; the war between Russia and Ukraine; the conflicts in the Middle East; the tensions between China and Taiwan; political instability including as a result of any UK general election; market related risks, trends and developments; changes in client and consumer behaviour and demand; exposure to counterparty risk; the ability to access sufficient sources of capital, liquidity and funding when required; changes to the Lloyds Bank Group’s or Lloyds Banking Group plc’s credit ratings; fluctuations in interest rates, inflation, exchange rates, stock markets and currencies; volatility in credit markets; volatility in the price of the Lloyds Bank Group’s securities; tightening of monetary policy in jurisdictions in which the Lloyds Bank Group operates; natural pandemic and other disasters; risks concerning borrower and counterparty credit quality; risks affecting defined benefit pension schemes; changes in laws, regulations, practices and accounting standards or taxation; changes to regulatory capital or liquidity requirements and similar contingencies; the policies and actions of governmental or regulatory authorities or courts together with any resulting impact on the future structure of the Lloyds Bank Group; risks associated with the Lloyds Bank Group’s compliance with a wide range of laws and regulations; assessment related to resolution planning requirements; risks related to regulatory actions which may be taken in the event of a bank or Lloyds Bank Group or Lloyds Banking Group failure; exposure to legal, regulatory or competition proceedings, investigations or complaints; failure to comply with anti-money laundering, counter terrorist financing, anti-bribery and sanctions regulations; failure to prevent or detect any illegal or improper activities; operational risks including risks as a result of the failure of third party suppliers; conduct risk; technological changes and risks to the security of IT and operational infrastructure, systems, data and information resulting from increased threat of cyber and other attacks; technological failure; inadequate or failed internal or external processes or systems; risks relating to ESG matters, such as climate change (and achieving climate change ambitions) and decarbonisation, including the Lloyds Bank Group’s or the Lloyds Banking Group’s ability along with the government and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, and human rights issues; the impact of competitive conditions; failure to attract, retain and develop high calibre talent; the ability to achieve strategic objectives; the ability to derive cost savings and other benefits including, but without limitation, as a result of any acquisitions, disposals and other strategic transactions; inability to capture accurately the expected value from acquisitions; and assumptions and estimates that form the basis of the Lloyds Bank Group’s financial statements. A number of these influences and factors are beyond the Lloyds Bank Group’s control. Please refer to the latest Annual Report on Form 20-F filed by Lloyds Bank plc with the US Securities and Exchange Commission (the SEC), which is available on the SEC’s website at http://www.sec.gov, for a discussion of certain factors and risks. Lloyds Bank plc may also make or disclose written and/or oral forward-looking statements in other written materials and in oral statements made by the directors, officers or employees of Lloyds Bank plc to third parties, including financial analysts. Except as required by any applicable law or regulation, the forward-looking statements contained in this document are made as of today’s date, and the Lloyds Bank Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document whether as a result of new information, future events or otherwise. The information, statements and opinions contained in this document do not constitute a public offer under any applicable law or an offer to sell any securities or financial instruments or any advice or recommendation with respect to such securities or financial instruments.

CONTACTS

For further information please contact:

INVESTORS AND ANALYSTS

Douglas Radcliffe
Group Investor Relations Director
020 7356 1571
douglas.radcliffe@lloydsbanking.com

Nora Thoden
Director of Investor Relations – ESG
020 7356 2334
nora.thoden@lloydsbanking.com

Tom Grantham
Investor Relations Senior Manager
07851 440 091
thomas.grantham@lloydsbanking.com

Sarah Robson
Investor Relations Senior Manager
07494 513 983
sarah.robson2@lloydsbanking.com

CORPORATE AFFAIRS

Grant Ringshaw
External Relations Director
020 7356 2362
grant.ringshaw@lloydsbanking.com

Matt Smith
Head of Media Relations
07788 352 487
matt.smith@lloydsbanking.com

Copies of this News Release may be obtained from:
Investor Relations, Lloyds Banking Group plc, 25 Gresham Street, London EC2V 7HN
The statement can also be found on the Group’s website – http://www.lloydsbankinggroup.com

Registered office: Lloyds Bank plc, 25 Gresham Street, London EC2V 7HN
Registered in England No. 2065

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit http://www.rns.com.

The MIL Network –

January 24, 2025

MIL-OSI Economics: Galaxy AI to Support 20 Languages by End of 2024

Source: Samsung

Samsung Electronics Co., Ltd. today announced the upcoming expansion of four new languages for Galaxy AI1: Turkish, Dutch, Swedish and Romanian. Existing supported languages will also expand to cover additional dialects in traditional Chinese and Portuguese (Europe). This expanded support will begin rolling out from the end of October.
Galaxy AI currently supports 16 languages2, and by the end of the year that number will go up to 20 with these new additions. This update means even more users will be able to lower language barriers and step into a larger world with the power of Galaxy AI. The new languages and dialects will be available for download as language packs from the Settings app of compatible Galaxy devices.
For more information about Galaxy AI, please visit: Samsung Newsroom, Samsungmobilepress.com or Samsung.com.

1 Galaxy AI features by Samsung will be provided for free until the end of 2025 on supported Samsung Galaxy devices.
2 Supported languages include Arabic, Chinese (China mainland, Hong Kong), English (Australia, India, United Kingdom, United States), French (Canada, France), German, Hindi, Indonesian, Italian, Japanese, Korean, Polish, Portuguese (Brazil), Russian, Spanish (Mexico, Spain, United States), Thai and Vietnamese.

MIL OSI Economics –

January 24, 2025

MIL-OSI United Kingdom: Esplanade resurfacing during October half term23 October 2024 The Government of Jersey will be carrying out essential highway maintenance on the eastbound carriageway of the Esplanade from 26 October to 3 November 2024. The Esplanade and Victoria Avenue will remain… Read more

Source: Channel Islands – Jersey

23 October 2024

The Government of Jersey will be carrying out essential highway maintenance on the eastbound carriageway of the Esplanade from 26 October to 3 November 2024.

The Esplanade and Victoria Avenue will remain open in both directions during the work, with a contraflow to ensure there are two lanes for each direction.

Signed diversions will also be in place, which will be especially important if you have an appointment at the General Hospital. Drivers approaching from the east will need to use Castle Street to get to Patriotic Street Car Park, while those coming from the west will need to use Cheapside/Gloucester Street to access Kensington Place/Patriotic Street.

We are sorry for any inconvenience caused. The work is much needed as some sections were last improved more than 20 years ago.

More details on diversions and working times are detailed on gov.je/roadworks.

MIL OSI United Kingdom –

January 24, 2025

MIL-OSI New Zealand: Mindful Money – Use your KiwiSaver for climate action

Source: Mindful Money

On International Day of Climate Action 2024, New Zealand charity Mindful Money is calling on Kiwis to drive climate action with their investments’. Most of us want to do our bit to help avoid climate chaos. A crucial – and easy – step that Kiwis can take is to reduce the emissions that result from their KiwiSaver and other investments.

Mindful Money is highlighting three actions that Kiwis can take to reduce the emissions financed by their investments.

Climate action 1: Avoid funding the fossil fools

Everyone with a KiwiSaver fund has the power to ensure their money doesn’t fuel climate change. There is over a billion dollars of KiwiSaver funds invested in hard core climate polluters that are still increasing their emissions, instead of transitioning to renewable energy.

Mindful Money Co-CEO Barry Coates explained: “This year’s Climate Action Day comes at a time when floods, fires, lethal heat and cyclones are devastating the lives of millions of vulnerable people, and wreaking havoc on our oceans, glaciers, forests and species. Kiwis can reduce their own contribution by choosing not to invest in the companies causing the most damage.”

The highest emissions are from the major coal, oil and gas companies that have made billions of dollars in profits while denying the problem and delaying and obstructing climate policy. A mere 57 oil, gas, coal and cement producers are directly linked to 80% of the world’s global fossil CO2 emissions since the 2015 Paris climate agreement.

The public companies, Shell, ExxonMobil, Chevron, BP and TotalEnergies were the five largest emitters between 2016 and 2022.

New Zealanders still invest large amounts in these fossil fools. Analysis by Mindful Money across all 376 KiwiSaver funds shows that $3.75 billion was invested in fossil fuel companies at end March 2024. More than a third of that was invested in the companies that are still expanding their production, instead of transitioning to renewable energy.

Investors in fossil fuel expanders are also taking financial risks from future declines in demand for fossil fuels and stranded assets – the reserves and production infrastructure that will become worthless as renewable energy replaces fossil fuels.

Barry Coates commented: “Surveys show that 71% of Kiwis want to avoid fossil fuels companies in their investment funds. But most KiwiSaver funds invest in fossil fuels, including those the companies that are still expanding their production. Everyone with a KiwiSaver or some kind of investment can play their part in cutting off investment into the worst climate polluters.”

ACTION (estimated 15 minutes): Members of the public can go to Mindful Money’s website to find out if their KiwiSaver fund is invested in these companies. It’s quick, easy and free to check your fund, and then find a fund that is better for the climate. https://mindfulmoney.nz/kiwisaver/checker/

Climate action 2: Don’t fall for the greenwashing

Over half of Kiwis surveyed are concerned about greenwashing – misleading claims that companies or funds are ‘climate friendly’ or ‘green’ or ‘sustainable’. There has been growing international pressure on companies and funds that make empty promises in order to boost their profits, but little action in New Zealand.

The EU, UK and other governments are introducing rules on green claims by companies and funds to prevent greenwashing, and regulators are taking action. The Australian Securities and Investment Commission (ASIC) has taken 47 regulatory actions against greenwashing over the past 15 months.

There have been three court cases including a fine of $14 million for global fund manager, Vanguard. New Zealand’s Financial Markets Authority (FMA) has repeatedly warned they will take action against misleading claims but has yet to take action. Meanwhile KiwiSaver and investment funds are still claiming green credentials while investing in the fossil fools.

Barry Coates commented: “It is not surprising the New Zealand public is concerned about greenwashing. Most funds in New Zealand claim to use some form of Environmental, Social and Governance (ESG) management in their investment. But these ESG claims are not consistent with investment portfolios that contain companies destroying the world’s climate and facing huge financial risks.”

“The New Zealand government is still failing to tackle greenwashing by the providers of KiwiSaver and other funds whose claims are not backed up by their actual investments. Investors need to take action themselves to ensure that their investments are not adding fuel to the climate fire.”

Without government action in New Zealand, the responsibility for avoiding greenwash falls on individual investors. It is now easy for members of the public to get free information about the reality of where their money goes. Mindful Money’s website not only shows the fossil fuel investments for all KiwiSaver and investment funds, but identifies those that are still expanding their production.

ACTION: Those with KiwiSaver and investment funds should call on their fund providers to provide evidence of their ESG or sustainability claims, including specifics about the companies they invest in. Information provided by the fund providers can be checked out with the investment listing on Mindful Money. http://www.mindfulmoney.nz/kiwisaver/checker/

Climate Action 3: Add your voice for change

International cooperation in the form of a Fossil Fuel Treaty is needed to stop the major fossil fuel companies from blocking progress towards investment in renewable energy. International treaties have been developed to phase out other forms of harmful products, including landmines and nuclear weapons. The Fossil Fuel Non-Proliferation Treaty is being proposed to manage a global transition to a safe and affordable energy future for all. It has been endorsed by 14 governments (not including New Zealand) and thousands of leaders from across civil society and local government, including Wellington City Council and Kāpiti Coast District Council.

ACTION: Members of the public are encouraged to work with organisations, networks, faiths, academic institutions and Councils to support the treaty, and to sign the treaty themselves. https://fossilfueltreaty.org/

Barry Coates concluded: “The Treaty is important to focus government attention on the fossil fuel industry. For the third year in a row, the next climate summit in December 2024 will be held in a country producing oil and gas (Azerbaijan). Fossil fuel lobbyists will again be given privileged access. The Fossil Fuel Treaty is a way to bring the issues of fossil fuel phaseout into the climate negotiations.”

Notes:

International Climate Day of Action is on Thursday 24th October. It is a time for citizens around the world to consider the actions they can take to help avoid the worsening climate crisis.

Mindful Money’s Fund Checker enables members of the public to check the investments in their KiwiSaver and investment funds. It is quick, easy and free.

https://mindfulmoney.nz/kiwisaver/checker/

The research report ‘In Transition or in denial’ explains the categorisation of fossil fuel companies into those transitioning to renewable energy and those still expanding their oil and gas production.

https://mindfulmoney.nz/learn/fossil-fuel-investment-in-transition-or-in-denial/

The Mindful Money Fund Finder helps members of the public to find a fund that aligns with their values. https://mindfulmoney.nz/kiwisaver/finder/

The website provides a list of funds that do not invest in fossil fuel companieshttps://mindfulmoney.nz/invest-climate-action/fossil-free-funds/

Research on capital expenditure by the major coal, oil and gas companies is published by the international research institute, InfluenceMap.

This week, a greenwashing action has been launched against the world’s largest fund manager, BlackRock.

The complaint to the French financial regulator shows the US investment giant’s so-called “sustainable” funds have poured over a billion dollars into fossil fuel expanders, including ExxonMobil, Shell, TotalEnergies, Chevron and BP.

International research shows the large passive funds that are claiming to invest sustainably are still investing in the oil and gas companies that are expanding their production. 70% of the 430 ‘sustainable’ passive funds analysed by international researcher Reclaim Finance were exposed to companies expanding their fossil fuels. These included big oil and gas developers (e.g. ExxonMobil, TotalEnergies, Shell) and big coal developers (e.g. Adani, Mitsubishi, Glencore).

Greenwash can take different forms. Some funds claim to be green by investing in the fossil fuel companies and then influencing them towards sustainability.

But the latest progress report from the umbrella engagement forum, Climate Action 100+, shows continued empty promises and little action. Only one of 37 major oil and gas companies subject to engagement is making adequate progress towards net zero. Seven years after Climate Action 100+ was formed, most of the coal, oil and gas companies are still expanding their oil and gas production instead of transitioning to renewable energy.

The only New Zealand case on greenwashing has been a civil case. Consumer NZ, the Environmental Law Initiative (ELI) and Lawyers for Climate Action New Zealand Inc (LCANZI) are seeking declarations from the High Court that Z Energy has breached the Fair Trading Act by misleading New Zealanders with its public messaging that it is“getting out of the petrol business” and it is “well on track to achieving [its] carbon reduction targets” when in fact its emissions have been increasing.

MIL OSI New Zealand News –

January 24, 2025

MIL-OSI: The Pet Hazard Decking Your Halls: truInsights into Foreign Body Ingestion & Holiday Decor

Source: GlobeNewswire (MIL-OSI)

SEATTLE, Oct. 23, 2024 (GLOBE NEWSWIRE) — Tis the season for holiday decor. But all those haunted Halloween decorations, Thanksgiving centerpieces and Christmas ornaments present a hidden danger pet parents need to watch out for.

In 2023 alone, pet medical insurance company Trupanion (Nasdaq: TRUP) received more than 24,000 foreign body ingestion claims. Foreign body ingestion (FBI) is a painful, sometimes deadly, and costly condition that happens when a pet eats something they can’t pass through their gastrointestinal system without veterinary help.

“Keep a close eye on your pets during the holiday season,” says veterinarian and Trupanion General Manager, Dr. Stephen Rose, BVSc (Hons1) M Infotech CVA ACVCHM. “And if you suspect your pet ate something they shouldn’t have, don’t risk it—reach out to your veterinarian to have them examined to be sure. It’s better to be safe than sorry in these instances.”

Foreign Body Ingestion: By the Numbers

In 2023, Trupanion paid 24,305 foreign body ingestion claims. The average claim was $878, while the highest claim was $27,403.

Amongst Trupanion’s current population of insured pets, 7% of dogs and 3% of cats have had an FBI claim. Puppies and kittens have the most FBI claims of any age group by far. Pets under 1 year of age claim 322% more than adults and senior pets. Adult pets claim 34% more than senior pets.

Top 5 Dog Breeds Claiming

Doberman Pinscher
Maltese
Boston Terrier
Shih Tzu
German Pointer

Top 5 Cat Breeds Claiming

Persian
Bengal
Russian Blue
Sphynx
Siberian

The Science & Medicine of Foreign Body Ingestion

When a pet eats a foreign object that they can’t pass through their gastrointestinal system, it can become lodged anywhere along the GI Tract and cause a variety of symptoms from vomiting and diarrhea to obstruction, organ damage, and even death.

Early signs and symptoms of foreign body ingestion are vomiting, diarrhea, lethargy, refusal of food or loss of appetite, whining, restlessness, pain in the belly, straining to defecate or being unable to fully vacate the bowels.

If these symptoms are observed, it’s recommended that the pet is seen by a veterinarian as quickly as possible so that they can be evaluated for foreign body ingestion.

During the examination, the vet may perform diagnostic imaging such as x-rays to see if a foreign object can be seen, or use a substance called Barium which when swallowed, illuminates on the radiographs to show if there is a blockage somewhere along the GI tract, and can help track the foreign material.

Surgery is often needed to safely remove foreign objects from the GI tract to prevent further damage. The vet may also support with IV fluids, prescribing pain and/or nausea medications, inducing vomiting, performing bloodwork to check organ function, as well as observation while the pet passes the object.

Prognosis is based on many factors such as what the pet ingested, how long the object has been stuck in the GI tract, where in the tract the object is stuck, and how healthy the pet is otherwise.

Early intervention is always better. If too much time passes before treatment, the pet’s health may continue to decline, and if the blockage is an intestinal or stomach obstruction, the blood flow to organs can be affected, which can result in permanent damage or necrosis of those tissues. In these cases, just a few hours can mean the difference between life or death.

Keeping Your Pets Safe During the Holidays

Common items that pets ingest that result in foreign body ingestion include clothing (often socks and underwear), sticks, bones, corn cobs, champagne corks, food packaging and wrappers, dental floss, hair elastics, and toy stuffing or squeakers.

During the holidays, the big ones to watch out for are decorations like tinsel, garlands, ribbons, and string. In fact, there is a specific type of very dangerous foreign body ingestion called a Linear Foreign Body, where things like strings or ribbons get lodged anywhere from the tongue down the esophagus and into the stomach and intestines. These linear foreign objects can cause the intestines to bunch and slice through the tissues as the body tries to expel them.

“Keep a close eye on your pets during the holiday season,” says veterinarian and Trupanion General Manager, Dr. Stephen Rose, BVSc (Hons1) M Infotech CVA ACVCHM. “There’s a lot going on—a lot of distractions for pet parents, and a lot of objects around the house this time of year that look like toys to our pets, so it’s vital to remain vigilant. On special occasions, ensure you’re cleaning up wrapping paper, bows, and ribbons after opening gifts, and when entertaining, keep pets contained and out of the kitchen so they don’t have access to food and bones, and to prevent guests from feeding them things they shouldn’t eat. And if you suspect your pet ate something they shouldn’t have, don’t risk it—reach out to your veterinarian to have them examined to be sure. It’s better to be safe than sorry in these instances.”

More Foreign Body Ingestion Safety Tips

Provide gates and pens to control what areas pet have access to
Check toys regularly to ensure they’re still intact
Dispose of toys that are coming apart to prevent ingestion of stuffing, strings and squeakers
Keep laundry room doors closed to prevent access to laundry baskets and detergent pods
Keep bathroom and bedroom doors closed to prevent access to garbage cans and other debris

About truInsights

truInsights is a data focused initiative introduced by Trupanion and designed to deliver valuable health-related data and insights to pet parents, veterinarians and pet lovers alike. With over 20 years of pet health data, Trupanion has explored its veterinary invoice data from nearly two million pets and provides details on data trends, as well as prevention tips for keeping our pets safe.

About Trupanion

Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, Europe, Puerto Rico and Australia with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet’s recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol “TRUP”. The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. Policies are sold and administered by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). For more information, please visit trupanion.com.

Contacts:

Media: Trupanion Corporate Communications

Corporate.communications@trupanion.com

The MIL Network –

January 24, 2025

MIL-OSI: Disney and Magnite Announce Two-Year Deal Renewal

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, and Disney have announced a two-year deal extension. As the relationship grows into its sixth year, Magnite continues to be Disney’s preferred supply-side technology partner. Disney leverages Magnite’s technology to monetize its ad-supported inventory across the company’s entire portfolio. Magnite facilitates transactions for all 30+ DSPs that Disney works with.

“Disney is committed to driving automation and executional ease for our clients. With all our streaming inventory available programmatically, Magnite remains a key technology partner supporting Disney’s advertising business,” stated Jamie Power, SVP of Addressable Sales at Disney. “Magnite plays a critical role in allowing buyers to access Disney’s inventory by connecting to more than 30 demand-side platforms in the US and starting to expand globally. In this rapidly evolving marketplace, Magnite consistently scales its capabilities to meet client needs, helping us stay ahead of emerging market trends.”

With the expanded relationship, Disney will also leverage Magnite to:

Execute one-to-one deals with key buyers through Magnite’s ClearLine offering
Monetize College Football games on live streams on ESPN
Support LATAM expansion in Brazil, Chile, Colombia, Mexico, Peru, and Argentina
Offer podcast inventory via PMPs, including ESPN and ABC News podcasts

“We appreciate Disney’s confidence in our long-standing relationship and look forward to working with their team to deliver exceptional advertising experiences across every consumer touchpoint,” said Sean Buckley, Chief Revenue Officer at Magnite. “In addition to our role in enabling Disney’s programmatic transactions, we’re actively innovating in new areas like live streaming to bring added value to our partnership.”

About Magnite
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile-high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

Media Contact:

Charlstie Veith
cveith@magnite.com
516-300-3569

Investor Relations
Nick Kormeluk
nkormeluk@magnite.com
949-500-0003

The MIL Network –

January 24, 2025

MIL-OSI Global: How beef became a marker of American identity

Source: The Conversation – USA – By Hannah Cutting-Jones, Assistant Professor, Department of Global Studies; Director of Food Studies, University of Oregon

Beef dominates American diets. In 2022, Americans consumed almost 30 billion pounds of beef. Johnrob/E+ via Getty Images

Beef is one of America’s most beloved foods. In fact, today’s average American eats three hamburgers per week.

American diets have long revolved around beef. On an 1861 trip to the United States, the English novelist Anthony Trollope marveled that Americans consumed twice as much beef as Englishmen. Through war, industry, development and settlement, America’s love of beef continued. In 2022, the U.S. as a whole consumed almost 30 billion pounds (13.6 billion kilograms) of it, or 21% of the world’s beef supply.

Beef has also reached iconic status in American culture. As “Slaughterhouse-Five” author Kurt Vonnegut once penned, “Being American is to eat a lot of beef, and boy, we’ve got a lot more beef steak than any other country, and that’s why you ought to be glad you’re an American.”

In part, the dominance of beef in American cuisine can be traced to settler colonialism, a form of colonization in which settlers claim – and then transform – lands inhabited by Indigenous people. In America, this process centered on the systemic and often violent displacement of Native Americans. Settlers brought with them new cultural norms, including beef-heavy diets that required massive swaths of land for grazing cattle.

As a food historian, I am interested in how, in the 19th century, the beef industry both propelled and benefited from colonialism, and how these intertwined forces continue to affect our diets, culture and environment today.

Cattle and cowboys

Beginning in the 16th century, the first Europeans to settle across the Americas – and later, Australia and New Zealand – brought their livestock with them. A global economy built on appropriated Indigenous territories allowed these nations to become among the highest consumers and producers of meat in the world.

The United States in particular tied its burgeoning national identity and westward expansion to the settlement and acquisition of cattle-ranching lands. Until 1848, Arizona, California, Texas, Nevada, Utah, western Colorado and New Mexico were part of Mexico and inhabited by numerous tribes, Indigenous cowboys and Mexican ranchers.

The Mexican-American War, which lasted from 1846-48, led to 525,000 square miles being ceded to the United States – land that became central to American beef production. Gold, discovered in the northern Sierra by 1849, drew hundreds of thousands more settlers to the region.

The desire for cattle-supporting land played an integral role in the systematic decimation of bison populations, as well. For thousands of years, Native Americans relied on bison for physical and cultural survival. At least 30 million roamed the western United States in 1800; by 1890, 60 million head of cattle had taken their place.

Beef replaces bison

It is no coincidence that the rise of an extensive and powerful American beef industry coincided with the near-elimination of bison across the United States.

Bison populations were already in steep decline by the mid-1800s, but after the Civil War, as industrialization transformed transportation, communication and mass production, the U.S. Army actively encouraged the wholesale slaughter of bison herds.

In 1875, Philip Sheridan, a general in the U.S. Army, applauded the impact bison hunters could have on the beef industry. Hunters “have done more in the last two years, and will do more in the next year, to settle the vexed Indian question, than the entire regular army has done in the last forty years,” Sheridan said. “They are destroying the Indians’ commissary … (and so) for a lasting peace, let them kill, skin and sell until the buffaloes are exterminated. Then your prairies can be covered with speckled cattle.”

In 1884, with no hint of irony, the U.S. Department of Indian Affairs constructed a slaughterhouse on the Blackfeet Reservation in Montana and required tribal members to provide the factory’s labor in exchange for its beef.

By 1888, New York politician and sometimes rancher Theodore Roosevelt described Western stockmen as “the pioneers of civilization,” who with “their daring and adventurousness make the after settlement of the region possible.” Later, during Roosevelt’s presidency – from 1900 to 1908 – the U.S. claimed another 230 million acres of Indigenous lands for public use, further opening the West to ranching and settlement.

The Union Stock Yards in Chicago, the most modern slaughterhouse of the era, opened on Christmas Day in 1865 and marked a turning point for industrial beef production. No longer delivered “on the hoof” to cities, cattle were now slaughtered in Chicago and sent East as tinned meat or, after the 1870s, in refrigerated railcars.

Processing over 1 million head of cattle annually at its height, the Union Stock Yards, a global technological marvel and international tourist attraction, symbolized industrial progress and inspired national pride.

Beef consumption has become part of the American origin myth of rugged individualism.
pastorscott via Getty Images.

Where’s the beef?

By the turn of the 20th century, beef was solidly linked to American identity both at home and globally. In 1900, the average American consumed over 100 pounds of beef per year, almost twice the amount eaten by Americans today.

Canadian food writer Marta Zaraska argues in her 2021 book “Meathooked” that beef became a key part of the American origin myth of rugged individualism that was emerging at this time. And cowboys, working the grueling cattle drives, came to embody values linked to the frontier: self-reliance, strength and independence.

Popular for decades as a street food, America’s proudest culinary invention – the hamburger – debuted at the St. Louis World’s Fair in 1904 alongside other novelties such as Dr. Pepper and ice cream.

After World War II, suburban markets and fast-food chains dominated the American foodscape, where beef burgers reigned supreme. By the end of the century, more people around the globe recognized the golden arches of McDonald’s than the Christian cross.

At the same time, national programs reinforced food insecurity for Native Americans. In efforts to eventually dissolve reservations and open these lands to private development, for example, in 1952 the U.S. government launched the Voluntary Relocation Program, in which the Bureau of Indian Affairs persuaded many living on reservations to move to cities. The promised well-paying jobs did not materialize, and most of those who relocated traded rural for urban poverty.

The true cost of a burger

Plant- and lab-based meat companies are making headway into restaurants and food markets.
coldsnowstorm/iStock via Getty Images Plus

Policies encouraging settler colonialism ultimately led to more sedentary lifestyles and a dependence on fast, convenient and processed foods – such as hamburgers – regardless of the individual or environmental costs.

In recent decades, scientists have warned that industrial meat production, and beef in particular, fuels climate change and leads to deforestation, soil erosion, species extinction, ocean dead zones and high levels of methane emissions. It is also a threat to biodiversity. Nutritionist Diego Rose believes the best way “to reduce your carbon footprint (is to) eat less beef,” a view shared by other sustainability experts.

As of January 2022, about 10% of Americans over the age of 18 considered themselves vegetarian or vegan. Another recent study found that 47% of American adults are “flexitarians” who eat primarily, but not wholly, plant-based diets.

At the same time, small-scale farmers and cooperatives are working to restore soil health by reintegrating cows and other grazing animals into sustainable farming practices to produce more high-quality, environmentally friendly meat.

More encouraging still, tribes in Montana – Blackfeet Nation, Fort Belknap Indian Community, Fort Peck Assiniboine and Sioux Tribes, and South Dakota’s Rosebud Sioux – have reintroduced bison to the northern Great Plains to revive the prairie ecosystem, tackle food insecurity and lessen the impacts of climate change.

Even so, in the summer of 2024, Americans consumed 375 million hamburgers in celebration of Independence Day – more than any other food.

Hannah Cutting-Jones does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. How beef became a marker of American identity – https://theconversation.com/how-beef-became-a-marker-of-american-identity-214824

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI: First Community Bankshares, Inc. Announces Third Quarter 2024 Results and Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

BLUEFIELD, Va., Oct. 22, 2024 (GLOBE NEWSWIRE) — First Community Bankshares, Inc. (NASDAQ: FCBC) (http://www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended September 30, 2024. The Company reported net income of $13.03 million, or $0.71 per diluted common share, for the quarter ended September 30, 2024. Net income for the nine months ended September 30, 2024, was $38.56 million or $2.09 per diluted common share.

The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31 per common share. The quarterly dividend is payable to common shareholders of record on November 8, 2024, and is expected to be paid on or about November 22, 2024. This marks the 39th consecutive year of regular dividends to common shareholders.

The Company is working with borrowers and customers in North Carolina, Tennessee, Virginia, and southern West Virginia affected by the devastating floods, power outages, and water shortages from Hurricane Helene. This includes payment relief for affected borrowers. We will continue to monitor the situation over the coming weeks as it relates to asset quality.

Third Quarter 2024 Highlights

Income Statement

Net income of $13.03 million for the third quarter of 2024, was a decrease of $1.61 million, or 10.98%, from the same quarter of 2023. Net income of $38.56 million for the first nine months of 2024, was an increase of $2.33 million, or 6.42%, from the same period of 2023.
Net interest income decreased $1.75 million compared to the same quarter in 2023, primarily due to increases in rates paid on interest-bearing deposits.
Net interest margin of 4.41% was a decrease of 10 basis points over the same quarter of 2023. The yield on earning assets increased 26 basis points from the same period of 2023 and is attributable to an increase in interest income resulting from an increase in yield. While there was an increase in yield for both loans and securities available for sale; the average balances decreased. The average balance for interest-bearing deposits with banks increased $219.59 million over the same period of 2023; however, there was no change in the yield from the same period of 2023. The yield on interest-bearing liabilities increased 58 basis points when compared with the same period of 2023 and is primarily attributable to increased rates on interest-bearing deposit liabilities.
Noninterest income increased approximately $830 thousand, or 8.63%, when compared to the same quarter of 2023. Noninterest income for the third quarter of 2024 included a gain of $825 thousand from the sale of two closed branch properties; noninterest income for the same period of 2023 included a gain of $204 thousand for the sale of a closed branch property. Noninterest expense increased $1.26 million, or 5.52%.
Annualized return on average assets (“ROA”) was 1.60% for the third quarter and 1.60% for the first nine months of 2024 compared to 1.74% and 1.49% for the same periods, respectively, of 2023. Annualized return on average common equity (“ROE”) was 10.04% for the third quarter and 10.08% for the first nine months of 2024 compared to 11.63% and 10.25% for the same periods, respectively, of 2023. Annualized return on average tangible common equity (“ROTCE”) was 14.46% for the third quarter and 14.61% for the first nine months of 2024 compared to 17.11% and 14.94% for the same periods, respectively, of 2023.

Balance Sheet and Asset Quality

Consolidated assets totaled $3.22 billion at September 30, 2024.
Loans decreased $128.19 million, or 4.98%, from December 31, 2023. Securities available for sale decreased $114.29 million, or 40.68%, from December 31, 2023. Deposits decreased $63.07 million, or 2.32%. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $198.92 million, or 170.86%.
The Company repurchased 12,854 common shares during the third quarter of 2024 at a total cost of $469 thousand. The Company repurchased 257,294 common shares during the first nine months of 2024 at a total cost of $8.72 million.
Non-performing loans to total loans increased to 0.82% when compared with the same quarter of 2023. The Company experienced net charge-offs for the third quarter of 2024 of $1.13 million, or 0.18% of annualized average loans, compared to net charge-offs of $1.46 million, or 0.22%, of annualized average loans for the same period in 2023.
The allowance for credit losses to total loans was 1.44% at September 30, 2024, compared to 1.41% at December 31, 2023, and 1.39% for September 30, 2023.
Book value per share at September 30, 2024, was $ 28.47, an increase of $1.27 from year-end 2023.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

About First Community Bankshares, Inc.

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of September 30, 2024. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.64 billion in combined assets as of September 30, 2024. The Company reported consolidated assets of $3.22 billion as of September 30, 2024. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at http://www.firstcommunitybank.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Amounts in thousands, except share and per share data)
	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2024			2024			2024			2023			2023			2024			2023
Interest income
Interest and fees on loans	$	32,120		$	32,696		$	33,418		$	33,676		$	33,496		$	98,234		$	93,051
Interest on securities		1,070			1,211			1,698			1,888			1,912			3,979			6,068
Interest on deposits in banks		3,702			2,882			913			438			697			7,497			2,044
Total interest income		36,892			36,789			36,029			36,002			36,105			109,710			101,163
Interest expense
Interest on deposits		5,298			4,877			4,365			3,935			2,758			14,540			5,406
Interest on borrowings		–			–			35			4			–			35			136
Total interest expense		5,298			4,877			4,400			3,939			2,758			14,575			5,542
Net interest income		31,594			31,912			31,629			32,063			33,347			95,135			95,621
Provision for credit losses		1,360			144			1,011			1,029			1,109			2,515			6,956
Net interest income after provision		30,234			31,768			30,618			31,034			32,238			92,620			88,665
Noninterest income		10,452			9,342			9,259			10,462			9,622			29,053			26,990
Noninterest expense		24,177			24,897			23,386			26,780			22,913			72,460			68,397
Income before income taxes		16,509			16,213			16,491			14,716			18,947			49,213			47,258
Income tax expense		3,476			3,527			3,646			2,932			4,307			10,649			11,022
Net income	$	13,033		$	12,686		$	12,845		$	11,784		$	14,640		$	38,564		$	36,236


Earnings per common share
Basic	$	0.71		$	0.69		$	0.70		$	0.64		$	0.78		$	2.10		$	2.03
Diluted	$	0.71		$	0.71		$	0.71		$	0.66		$	0.79		$	2.09		$	2.06
Cash dividends per common share
Regular		0.31			0.29			0.29			0.29			0.29			0.89			0.87
Weighted average shares outstanding
Basic		18,279,612			18,343,958			18,476,128			18,530,114			18,786,032			18,366,249			17,816,505
Diluted		18,371,907			18,409,876			18,545,910			18,575,226			18,831,836			18,432,023			17,857,494
Performance ratios
Return on average assets		1.60	%		1.58	%		1.60	%		1.43	%		1.74	%		1.60	%		1.49	%
Return on average common equity		10.04	%		10.02	%		10.18	%		9.39	%		11.63	%		10.08	%		10.25	%
Return on average tangible common equity(1)		14.46	%		14.54	%		14.82	%		13.82	%		17.11	%		14.61	%		14.94	%

____________
(1)	A non-GAAP financial measure defined as net income divided by average stockholders’ equity less average goodwill and other intangible assets.


CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited)

(Amounts in thousands)	Three Months Ended										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,
	2024		2024		2024		2023		2023		2024		2023
Noninterest income
Wealth management	$	1,071	$	1,064	$	1,099	$	1,052	$	1,145	$	3,234	$	3,127
Service charges on deposits		3,661		3,428		3,310		3,637		3,729		10,399		10,359
Other service charges and fees		3,697		3,670		3,450		3,541		3,564		10,817		10,106
(Loss) gain on sale of securities		–		–		–		–		–		–		(21	)
Other operating income		2,023		1,180		1,400		2,232		1,184		4,603		3,419
Total noninterest income	$	10,452	$	9,342	$	9,259	$	10,462	$	9,622	$	29,053	$	26,990
Noninterest expense
Salaries and employee benefits	$	13,129	$	12,491	$	12,581	$	12,933	$	12,673	$	38,201	$	36,954
Occupancy expense		1,270		1,309		1,378		1,252		1,271		3,957		3,715
Furniture and equipment expense		1,574		1,687		1,545		1,489		1,480		4,806		4,389
Service fees		2,461		2,427		2,449		2,255		2,350		7,337		6,653
Advertising and public relations		967		933		796		843		968		2,696		2,457
Professional fees		221		330		372		787		172		923		780
Amortization of intangibles		536		530		530		536		536		1,596		1,195
FDIC premiums and assessments		365		364		369		376		392		1,098		1,135
Merger expense		–		–		–		–		–		–		2,393
Litigation expense		–		1,800		–		3,000		–		1,800		–
Other operating expense		3,654		3,026		3,366		3,309		3,071		10,046		8,726
Total noninterest expense	$	24,177	$	24,897	$	23,386	$	26,780	$	22,913	$	72,460	$	68,397


RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)

(Amounts in thousands, except per share data)	Three Months Ended															Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,			September 30,
	2024			2024			2024			2023			2023			2024			2023
Adjusted Net Income for diluted earnings per share	$	13,033		$	12,686		$	12,845		$	12,314		$	14,855		$	38,564		$	36,828
Non-GAAP adjustments:
Loss (gain) on sale of securities		–			–			–			–			–			–			21
Merger expense		–			–			–			–			–			–			2,393
Day 2 provision for allowance for credit losses – Surrey		–			–			–			–			–			–			1,614
Litigation expense		–			1,800			–			3,000			–			1,800			–
Other items(1)		(825	)		–			–			–			(204	)		(825	)		–
Total adjustments		(825	)		1,800			–			3,000			(204	)		975			4,028
Tax effect		(198	)		432			–			720			(49	)		234			532
Adjusted earnings, non-GAAP	$	12,406		$	14,054		$	12,845		$	14,594		$	14,700		$	39,305		$	40,324

Adjusted diluted earnings per common share, non-GAAP	$	0.68		$	0.76		$	0.69		$	0.79		$	0.78		$	2.13		$	2.26
Performance ratios, non-GAAP
Adjusted return on average assets		1.53	%		1.75	%		1.60	%		1.77	%		1.75	%		1.63	%		1.66	%
Adjusted return on average common equity		9.56	%		11.10	%		10.18	%		11.63	%		11.68	%		10.27	%		11.40	%
Adjusted return on average tangible common equity (2)		13.77	%		16.11	%		14.82	%		17.11	%		17.18	%		14.89	%		16.62	%

____________
(1)	Includes other non-recurring income and expense items.
(2)	A non-GAAP financial measure defined as adjusted earnings divided by average stockholders’ equity less average goodwill and other intangible assets.


AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

	Three Months Ended September 30,
	2024							2023
	Average				Average Yield/			Average				Average Yield/
(Amounts in thousands)	Balance		Interest(1)		Rate(1)			Balance		Interest(1)		Rate(1)
Assets
Earning assets
Loans(2)(3)	$	2,455,807	$	32,201		5.22	%	$	2,604,885	$	33,566		5.11	%
Securities available for sale		133,654		1,099		3.27	%		284,659		1,952		2.72	%
Interest-bearing deposits		270,440		3,701		5.44	%		50,855		697		5.44	%
Total earning assets		2,859,901		37,001		5.15	%		2,940,399		36,215		4.89	%
Other assets		371,358							393,001
Total assets	$	3,231,259						$	3,333,400

Liabilities and stockholders’ equity
Interest-bearing deposits
Demand deposits	$	656,780	$	234		0.14	%	$	699,066	$	165		0.09	%
Savings deposits		886,766		3,735		1.68	%		862,121		1,941		0.89	%
Time deposits		245,020		1,329		2.16	%		263,940		652		0.98	%
Total interest-bearing deposits		1,788,566		5,298		1.18	%		1,825,127		2,758		0.60	%
Borrowings
Retail repurchase agreements		1,054		–		0.05	%		1,254		–		N/M
Total borrowings		1,054		–		0.05	%		1,254		–		N/M
Total interest-bearing liabilities		1,789,620		5,298		1.18	%		1,826,381		2,758		0.60	%
Noninterest-bearing demand deposits		877,472							964,093
Other liabilities		47,892							43,574
Total liabilities		2,714,984							2,834,048
Stockholders’ equity		516,275							499,352
Total liabilities and stockholders’ equity	$	3,231,259						$	3,333,400
Net interest income, FTE(1)			$	31,703						$	33,457
Net interest rate spread						3.97	%						4.29	%
Net interest margin, FTE(1)						4.41	%						4.51	%

____________
(1)	Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2)	Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)	Interest on loans includes non-cash and accelerated purchase accounting accretion of $592 thousand and $874 thousand for the three months ended September 30, 2024 and 2023, respectively.


AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)

	Nine Months Ended September 30,
	2024							2023
	Average				Average Yield/			Average				Average Yield/
(Amounts in thousands)	Balance		Interest(1)		Rate(1)			Balance		Interest(1)		Rate(1)
Assets
Earning assets
Loans(2)(3)	$	2,501,209	$	98,479		5.26	%	$	2,523,814	$	93,261		4.94	%
Securities available for sale		172,331		4,073		3.16	%		306,435		6,191		2.70	%
Interest-bearing deposits		182,773		7,499		5.48	%		51,759		2,047		5.29	%
Total earning assets		2,856,313		110,051		5.15	%		2,882,008		101,499		4.71	%
Other assets		372,663							366,243
Total assets	$	3,228,976						$	3,248,251

Liabilities and stockholders’ equity
Interest-bearing deposits
Demand deposits	$	662,433	$	570		0.11	%	$	682,820	$	225		0.04	%
Savings deposits		875,797		10,730		1.64	%		850,411		3,731		0.59	%
Time deposits		247,088		3,240		1.75	%		272,435		1,450		0.71	%
Total interest-bearing deposits		1,785,318		14,540		1.09	%		1,805,666		5,406		0.40	%
Borrowings
Federal funds purchased		839		35		5.52	%		3,532		135		5.11	%
Retail repurchase agreements		1,061		–		0.05	%		1,674		1		0.06	%
Total borrowings		1,900		35		2.46	%		5,206		136		3.49	%
Total interest-bearing liabilities		1,787,218		14,575		1.09	%		1,810,872		5,542		0.41	%
Noninterest-bearing demand deposits		883,013							924,591
Other liabilities		47,772							40,014
Total liabilities		2,718,003							2,775,477
Stockholders’ equity		510,973							472,774
Total liabilities and stockholders’ equity	$	3,228,976						$	3,248,251
Net interest income, FTE(1)			$	95,476						$	95,957
Net interest rate spread						4.06	%						4.30	%
Net interest margin, FTE(1)						4.46	%						4.45	%

____________
(1)	Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2)	Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)	Interest on loans includes non-cash and accelerated purchase accounting accretion of $2.04 million and $1.95 million for the nine months ended September 30, 2024 and 2023, respectively.


CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands, except per share data)	2024			2024			2024			2023			2023
Assets
Cash and cash equivalents	$	315,338		$	329,877		$	248,905		$	116,420		$	113,397
Debt securities available for sale, at fair value		166,669			129,686			166,247			280,961			275,332
Loans held for investment, net of unearned income		2,444,113			2,473,268			2,519,833			2,572,298			2,593,472
Allowance for credit losses		(35,118	)		(34,885	)		(35,461	)		(36,189	)		(36,031	)
Loans held for investment, net		2,408,995			2,438,383			2,484,372			2,536,109			2,557,441
Premises and equipment, net		49,654			50,528			51,333			50,680			51,205
Other real estate owned		346			100			374			192			243
Interest receivable		9,883			9,984			10,719			10,881			10,428
Goodwill		143,946			143,946			143,946			143,946			143,946
Other intangible assets		13,550			14,085			14,615			15,145			15,681
Other assets		115,980			116,230			115,470			114,211			116,552
Total assets	$	3,224,361		$	3,232,819		$	3,235,981		$	3,268,545		$	3,284,225

Liabilities
Deposits
Noninterest-bearing	$	869,723		$	889,462		$	902,396		$	931,920		$	944,301
Interest-bearing		1,789,530			1,787,810			1,779,819			1,790,405			1,801,835
Total deposits		2,659,253			2,677,272			2,682,215			2,722,325			2,746,136
Securities sold under agreements to repurchase		954			894			1,006			1,119			1,029
Interest, taxes, and other liabilities		43,460			45,769			45,816			41,807			41,393
Total liabilities		2,703,667			2,723,935			2,729,037			2,765,251			2,788,558

Stockholders’ equity
Common stock		18,291			18,270			18,413			18,502			18,671
Additional paid-in capital		168,691			168,272			173,041			175,841			180,951
Retained earnings		342,121			334,756			327,389			319,902			313,489
Accumulated other comprehensive loss		(8,409	)		(12,414	)		(11,899	)		(10,951	)		(17,444	)
Total stockholders’ equity		520,694			508,884			506,944			503,294			495,667
Total liabilities and stockholders’ equity	$	3,224,361		$	3,232,819		$	3,235,981		$	3,268,545		$	3,284,225

Shares outstanding at period-end		18,290,938			18,270,273			18,413,088			18,502,396			18,671,470
Book value per common share	$	28.47		$	27.85		$	27.53		$	27.20		$	26.55
Tangible book value per common share(1)		19.86			19.20			18.92			18.60			18.00

____________
(1)	A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangible assets, divided by shares outstanding.


SELECTED CREDIT QUALITY INFORMATION (Unaudited)

	September 30,			June 30,			March 31,			December 31,			September 30,
(Amounts in thousands)	2024			2024			2024			2023			2023
Allowance for Credit Losses
Balance at beginning of period:
Allowance for credit losses – loans	$	34,885		$	35,461		$	36,189		$	36,031		$	36,177
Allowance for credit losses – loan commitments		441			746			746			758			964
Total allowance for credit losses beginning of period		35,326			36,207			36,935			36,789			37,141
Adjustments to beginning balance:
Allowance for credit losses – loans – Surrey acquisition for purchased credit deteriorated loans		–			–			–			–			–
Allowance for credit losses – loan commitments		–			–			–			–			–
Net Adjustments		–			–			–			–			–
Provision for credit losses:
Provision for credit losses – loans		1,360			449			1,011			1,041			1,315
(Recovery of) provision for credit losses – loan commitments		–			(305	)		–			(12	)		(206	)
Total provision for credit losses – loans and loan commitments		1,360			144			1,011			1,029			1,109
Charge-offs		(1,799	)		(1,599	)		(2,448	)		(2,105	)		(2,157	)
Recoveries		672			574			709			1,222			696
Net (charge-offs) recoveries		(1,127	)		(1,025	)		(1,739	)		(883	)		(1,461	)
Balance at end of period:
Allowance for credit losses – loans		35,118			34,885			35,461			36,189			36,031
Allowance for credit losses – loan commitments		441			441			746			746			758
Ending balance	$	35,559		$	35,326		$	36,207		$	36,935		$	36,789

Nonperforming Assets
Nonaccrual loans	$	19,754		$	19,815		$	19,617		$	19,356		$	18,366
Accruing loans past due 90 days or more		176			19			30			104			59
Modified loans past due 90 days or more		–			–			–			–			–
Total nonperforming loans		19,930			19,834			19,647			19,460			18,425
OREO		346			100			374			192			243
Total nonperforming assets	$	20,276		$	19,934		$	20,021		$	19,652		$	18,668


Additional Information
Total modified loans	$	2,320		$	2,290		$	2,177		$	1,873		$	1,674

Asset Quality Ratios
Nonperforming loans to total loans		0.82	%		0.80	%		0.78	%		0.76	%		0.71	%
Nonperforming assets to total assets		0.63	%		0.62	%		0.62	%		0.60	%		0.57	%
Allowance for credit losses to nonperforming loans		176.21	%		175.88	%		180.49	%		185.97	%		195.55	%
Allowance for credit losses to total loans		1.44	%		1.41	%		1.41	%		1.41	%		1.39	%
Annualized net charge-offs (recoveries) to average loans		0.18	%		0.16	%		0.27	%		0.14	%		0.22	%

FOR MORE INFORMATION, CONTACT:

David D. Brown

(276) 326-9000

The MIL Network –

January 24, 2025

MIL-OSI: Enphase Energy Reports Financial Results for the Third Quarter of 2024

Source: GlobeNewswire (MIL-OSI)

FREMONT, Calif., Oct. 22, 2024 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the third quarter of 2024, which included the summary below from its President and CEO, Badri Kothandaraman.

We reported quarterly revenue of $380.9 million in the third quarter of 2024, along with 48.1% for non-GAAP gross margin. We shipped 1,731,768 microinverters, or approximately 730.0 megawatts DC, and 172.9 megawatt hours of IQ^® Batteries.

Financial highlights for the third quarter of 2024 are listed below:

Quarterly revenue of $380.9 million
GAAP gross margin of 46.8%; non-GAAP gross margin of 48.1% with net IRA benefit
Non-GAAP gross margin of 38.9%, excluding net IRA benefit of 9.2%
GAAP operating income of $49.8 million; non-GAAP operating income of $101.4 million
GAAP net income of $45.8 million; non-GAAP net income of $88.4 million
GAAP diluted earnings per share of $0.33, non-GAAP diluted earnings per share of $0.65
Free cash flow of $161.6 million; ending cash, cash equivalents, and marketable securities of $1.77 billion

Our revenue and earnings for the third quarter of 2024 are provided below, compared with the prior quarter:

(In thousands, except per share and percentage data)

	GAAP									Non-GAAP
	Q3 2024			Q2 2024			Q3 2023			Q3 2024			Q2 2024			Q3 2023
Revenue	$	380,873		$	303,458		$	551,082		$	380,873		$	303,458		$	551,082
Gross margin		46.8	%		45.2	%		47.5	%		48.1	%		47.1	%		48.4	%
Operating expenses	$	128,383		$	135,367		$	144,024		$	81,612		$	81,706		$	99,027
Operating income	$	49,788		$	1,799		$	117,989		$	101,411		$	61,080		$	167,593
Net income	$	45,762		$	10,833		$	113,953		$	88,402		$	58,824		$	141,849
Basic EPS	$	0.34		$	0.08		$	0.84		$	0.65		$	0.43		$	1.04
Diluted EPS	$	0.33		$	0.08		$	0.80		$	0.65		$	0.43		$	1.02

Total revenue for the third quarter of 2024 was $380.9 million, compared to $303.5 million in the second quarter of 2024. Our revenue in the United States for the third quarter of 2024 increased approximately 43%, compared to the second quarter of 2024. The increase was due to higher shipments to distributors as inventory returned to normal levels. Our revenue in Europe decreased approximately 15% for the third quarter of 2024, compared to the second quarter of 2024. The decline in revenue was the result of a further softening in European demand.

Our non-GAAP gross margin was 48.1% in the third quarter of 2024, compared to 47.1% in the second quarter of 2024. Our non-GAAP gross margin, excluding net IRA benefit, was 38.9% in the third quarter of 2024, compared to 41.0% in the second quarter of 2024.

Our non-GAAP operating expenses were $81.6 million in the third quarter of 2024, compared to $81.7 million in the second quarter of 2024. Our non-GAAP operating income was $101.4 million in the third quarter of 2024, compared to $61.1 million in the second quarter of 2024.

We exited the third quarter of 2024 with $1.77 billion in cash, cash equivalents, and marketable securities and generated $170.1 million in cash flow from operations in the third quarter of 2024. Our capital expenditures were $8.5 million in the third quarter of 2024, compared to $9.6 million in the second quarter of 2024.

In the third quarter of 2024, we repurchased 434,947 shares of our common stock at an average price of $114.48 per share for a total of approximately $49.8 million. We also spent approximately $6.3 million dollars by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 59,607 shares.

We shipped 172.9 megawatt hours of IQ Batteries in the third quarter of 2024, compared to 120.2 megawatt hours in the second quarter of 2024. We are now shipping our third generation of IQ Batteries, the IQ^® Battery 5P™, to the United States, Puerto Rico, Mexico, Canada, Australia, the United Kingdom, Italy, France, the Netherlands, Luxembourg, and Belgium. More than 9,000 installers worldwide are certified to install our IQ Batteries, compared to more than 7,400 installers worldwide in the second quarter of 2024.

During the third quarter of 2024, we shipped approximately 1,176,000 microinverters from our contract manufacturing facilities in the United States that we booked for 45X production tax credits. We began shipping IQ8HC™ Microinverters with higher domestic content, produced at our contract manufacturing facilities in the United States. We expect to begin shipping our commercial microinverters, and batteries with higher domestic content, produced at our United States contract manufacturing facilities in the fourth quarter of 2024.

During the third quarter of 2024, we launched AI-based software that is designed to optimize energy use by integrating solar and consumption forecasting with electricity tariff. This is intended to help consumers maximize savings as energy markets become increasingly complex, such as with dynamic electricity rates in parts of Europe and NEM 3.0 in California. We are gearing up to launch our second-generation IQ^® EV charger, the 3-Phase IQ Battery with backup, and the IQ^® Balcony Solar Kit all for the European market – pushing the boundaries of innovation. Finally, our fourth-generation energy system, featuring the IQ^® Meter Collar, 10 kWh IQ Battery, and enhanced IQ^® Combiner, is expected to debut in the United States in early 2025, targeting a substantial reduction in installation costs.

BUSINESS HIGHLIGHTS

On Oct. 16, 2024, Enphase Energy announced that it started shipping IQ8™ Microinverters to support newer, high-powered solar panels in select countries and territories, including the Netherlands, Austria, New Caledonia, and Malta.

On Oct. 9, 2024, Enphase Energy announced that it is expanding its support for grid services programs – or virtual power plants (VPPs) – in New Hampshire, North Carolina, and California, powered by the new IQ Battery 5P.

On Oct. 3, 2024, Enphase Energy announced the launch of its IQ8X™ Microinverters in Australia, and that all IQ8 Microinverters activated starting Oct. 1, 2024 in Australia come with an industry-leading 25-year limited warranty, currently the longest standard residential warranty in the Australian market.

On Sept. 24, 2024, Enphase Energy announced the launch of its most powerful Enphase^® Energy System™ to-date, featuring the new IQ Battery 5P and IQ8 Microinverters, for customers in India.

On Sept. 16, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in Belgium. Enphase also introduced IQ^® Energy Management, its new AI-based energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in Belgium.

On Sept. 10, 2024, Enphase Energy announced initial shipments of IQ8HC Microinverters supplied from contract manufacturing facilities in the United States with higher domestic content than previous models. The microinverters have SKUs with a “DOM” suffix, indicating the increased amount of domestic content.

On Sept. 4, 2024, Enphase Energy announced a solution for expanding legacy net energy metering (NEM) solar energy systems in California without penalty using new Enphase Energy Systems configurations with IQ^® Microinverters, IQ Batteries, and Enphase Power Control.

On Aug. 27, 2024, Enphase Energy announced the availability of pre-orders for IQ Battery 5Ps produced in the United States. Pre-orders are also available for IQ8HC Microinverters, IQ8P-3P™ Microinverters, and IQ8X Microinverters produced in the United States with higher domestic content.

On Aug. 19, 2024, Enphase Energy announced that it started shipping the IQ Battery 5P in the Netherlands. Enphase also introduced IQ Energy Management, its new energy management software to enable support for dynamic electricity rates and the integration of third-party EV chargers and heat pumps in the Netherlands.

On Aug. 8, 2024, Enphase Energy announced the launch of its new North American Charging Standard (NACS) connectors for its entire line of IQ EV Chargers. NACS connectors and charger ports have recently become the industry standard embraced by several major automakers for electric vehicles (EVs).

On Aug. 5, 2024, Enphase Energy announced that it started shipping IQ8P™ and IQ8HC Microinverters to support newer, high-powered solar panels in select countries throughout the Caribbean.

On Aug. 1, 2024, Enphase Energy announced that it started shipping IQ8 Microinverters to support newer, high-powered solar modules in select countries throughout Europe, including France, Germany, Spain, Bulgaria, Estonia, Slovakia, and Croatia.

FOURTH QUARTER 2024 FINANCIAL OUTLOOK

For the fourth quarter of 2024, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

Revenue to be within a range of $360.0 million to $400.0 million, which includes shipments of 140 to 160 megawatt hours of IQ Batteries
GAAP gross margin to be within a range of 47.0% to 50.0% with net IRA benefit
Non-GAAP gross margin to be within a range of 49.0% to 52.0% with net IRA benefit and 39.0% to 42.0% excluding net IRA benefit. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization
Net IRA benefit to be within a range of $38.0 million to $41.0 million based on estimated shipments of 1,300,000 units of U.S. manufactured microinverters
GAAP operating expenses to be within a range of $135.0 million to $139.0 million
Non-GAAP operating expenses to be within a range of $81.0 million to $85.0 million, excluding $54.0 million estimated for stock-based compensation expense, acquisition related expenses and amortization

For 2024, GAAP and non-GAAP annualized effective tax rate with IRA benefit, excluding discrete items, is expected to be within a range of 17.0% to 19.0%.

Follow Enphase Online

Use of non-GAAP Financial Measures

Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

Acquisition related expenses and amortization. This item represents expenses incurred related to Enphase Energy’s business acquisitions, which are non-recurring in nature, and amortization of acquired intangible assets, which is a non-cash expense. Acquisition related expenses and amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in Mexico, India, and China. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

Conference Call Information

Enphase Energy will host a conference call for analysts and investors to discuss its third quarter 2024 results and fourth quarter 2024 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com. Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 2677879, beginning approximately one hour after the call.

Forward-Looking Statements

This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its fourth quarter of 2024 financial outlook, including revenue, shipments of IQ Batteries by megawatt hours, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; its expectations on the timing and introduction of new products and updates to existing products; its expectations for global capacity of microinverters; its ability to support grid services in new locations; the ability of its AI-based software to help consumers maximize savings as energy markets become increasingly complex; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at http://www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

About Enphase Energy, Inc.

Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power—and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 78.0 million microinverters, and over 4.5 million Enphase-based systems have been deployed in more than 160 countries. For more information, visit https://enphase.com/.

© 2024 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

Contact:

Zach Freedman
Enphase Energy, Inc.
Investor Relations
ir@enphaseenergy.com

ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net revenues	$	380,873		$	303,458		$	551,082		$	947,670		$	1,988,216
Cost of revenues		202,702			166,292			289,069			516,825			1,076,490
Gross profit		178,171			137,166			262,013			430,845			911,726
Operating expenses:
Research and development		47,843			48,871			54,873			150,925			172,045
Sales and marketing		49,671			51,775			55,357			154,753			178,383
General and administrative		30,192			33,550			33,794			98,924			104,456
Restructuring and asset impairment charges		677			1,171			—			3,755			870
Total operating expenses		128,383			135,367			144,024			408,357			455,754
Income from operations		49,788			1,799			117,989			22,488			455,972
Other income, net
Interest income		19,977			19,203			19,669			58,889			49,235
Interest expense		(2,237	)		(2,220	)		(2,196	)		(6,653	)		(6,571	)
Other income (expense), net		(16,785	)		(7,566	)		1,883			(24,264	)		2,276
Total other income, net		955			9,417			19,356			27,972			44,940
Income before income taxes		50,743			11,216			137,345			50,460			500,912
Income tax provision		(4,981	)		(383	)		(23,392	)		(9,962	)		(82,895	)
Net income	$	45,762		$	10,833		$	113,953		$	40,498		$	418,017
Net income per share:
Basic	$	0.34		$	0.08		$	0.84		$	0.30		$	3.06
Diluted	$	0.33		$	0.08		$	0.80		$	0.30		$	2.92
Shares used in per share calculation:
Basic		135,329			135,646			136,165			135,621			136,491
Diluted		139,914			136,123			143,863			136,236			145,081

ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	September 30, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	256,325	$	288,748
Marketable securities		1,510,299		1,406,286
Accounts receivable, net		232,225		445,959
Inventory		158,837		213,595
Prepaid expenses and other assets		203,195		88,930
Total current assets		2,360,881		2,443,518
Property and equipment, net		148,444		168,244
Operating lease, right of use asset, net		28,120		19,887
Intangible assets, net		51,152		68,536
Goodwill		214,292		214,562
Other assets		185,448		215,895
Deferred tax assets, net		275,854		252,370
Total assets	$	3,264,191	$	3,383,012
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	112,417	$	116,164
Accrued liabilities		189,819		261,919
Deferred revenues, current		129,556		118,300
Warranty obligations, current		35,755		36,066
Debt, current		99,931		—
Total current liabilities		567,478		532,449
Long-term liabilities:
Deferred revenues, non-current		354,210		369,172
Warranty obligations, non-current		148,477		153,021
Other liabilities		62,392		51,008
Debt, non-current		1,200,261		1,293,738
Total liabilities		2,332,818		2,399,388
Total stockholders’ equity		931,373		983,624
Total liabilities and stockholders’ equity	$	3,264,191	$	3,383,012

ENPHASE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Cash flows from operating activities:
Net income	$	45,762		$	10,833		$	113,953		$	40,498		$	418,017
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		20,103			20,484			19,448			60,724			53,867
Net amortization (accretion) of premium (discount) on marketable securities		(2,904	)		(1,030	)		5,094			(1,109	)		(12,611	)
Provision for doubtful accounts		2,704			1,897			653			4,471			1,282
Asset impairment		17,568			6,241			903			24,141			903
Non-cash interest expense		2,173			2,157			2,114			6,462			6,254
Net loss (gain) from change in fair value of debt securities		741			1,931			(1,910	)		1,730			(5,408	)
Stock-based compensation		45,940			52,757			43,814			159,530			157,635
Deferred income taxes		(5,276	)		(14,076	)		(11,499	)		(27,644	)		(38,295	)
Changes in operating assets and liabilities:
Accounts receivable		49,414			82,183			(34,752	)		208,956			(118,249	)
Inventory		17,231			31,825			(8,003	)		54,758			(24,406	)
Prepaid expenses and other assets		(64,149	)		(42,810	)		(15,383	)		(117,856	)		(57,376	)
Accounts payable, accrued and other liabilities		32,088			(23,944	)		9,903			(58,140	)		117,128
Warranty obligations		7,053			15			8,151			(4,855	)		57,420
Deferred revenues		1,690			(1,401	)		13,369			(5,265	)		105,169
Net cash provided by operating activities		170,138			127,062			145,855			346,401			661,330
Cash flows from investing activities:
Purchases of property and equipment		(8,533	)		(9,636	)		(23,848	)		(25,540	)		(90,326	)
Purchases of marketable securities		(319,190	)		(300,053	)		(470,766	)		(1,091,511	)		(1,743,674	)
Maturities and sale of marketable securities		215,241			282,063			494,804			994,677			1,406,608
Investments in private companies		—			—			(15,000	)		—			(15,000	)
Net cash used in investing activities		(112,482	)		(27,626	)		(14,810	)		(122,374	)		(442,392	)
Cash flows from financing activities:
Partial settlement of convertible notes		(5	)		—			—			(7	)		—
Repurchase of common stock		(49,794	)		(99,908	)		(110,000	)		(191,698	)		(310,000	)
Proceeds from issuance of common stock under employee equity plans		14			6,769			719			7,969			1,315
Payment of withholding taxes related to net share settlement of equity awards		(6,286	)		(7,473	)		(8,465	)		(73,801	)		(93,100	)
Net cash used in financing activities		(56,071	)		(100,612	)		(117,746	)		(257,537	)		(401,785	)
Effect of exchange rate changes on cash and cash equivalents		2,638			(374	)		(1,900	)		1,087			(322	)
Net increase (decrease) in cash and cash equivalents		4,223			(1,550	)		11,399			(32,423	)		(183,169	)
Cash and cash equivalents—Beginning of period		252,102			253,652			278,676			288,748			473,244
Cash and cash equivalents —End of period	$	256,325		$	252,102		$	290,075		$	256,325		$	290,075

ENPHASE ENERGY, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data and percentages)
(Unaudited)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Gross profit (GAAP)	$	178,171		$	137,166		$	262,013		$	430,845		$	911,726
Stock-based compensation		2,948			3,730			2,708			10,860			9,775
Acquisition related amortization		1,904			1,890			1,899			5,685			5,686
Gross profit (Non-GAAP)	$	183,023		$	142,786		$	266,620		$	447,390		$	927,187

Gross margin (GAAP)		46.8	%		45.2	%		47.5	%		45.5	%		45.9	%
Stock-based compensation		0.8			1.3			0.6			1.1			0.5
Acquisition related amortization		0.5			0.6			0.3			0.6			0.2
Gross margin (Non-GAAP)		48.1	%		47.1	%		48.4	%		47.2	%		46.6	%

Operating expenses (GAAP)	$	128,383		$	135,367		$	144,024		$	408,357		$	455,754
Stock-based compensation⁽¹⁾		(42,992	)		(49,027	)		(41,106	)		(148,670	)		(147,860	)
Acquisition related expenses and amortization		(3,102	)		(3,463	)		(3,891	)		(10,027	)		(11,429	)
Restructuring and asset impairment charges		(677	)		(1,171	)		—			(3,755	)		(901	)
Operating expenses (Non-GAAP)	$	81,612		$	81,706		$	99,027		$	245,905		$	295,564

⁽¹⁾Includes stock-based compensation as follows:
Research and development	$	19,790		$	20,210		$	19,285		$	64,550		$	64,528
Sales and marketing		14,237			16,784			13,297			49,199			49,231
General and administrative		8,965			12,033			8,524			34,921			34,101
Total	$	42,992		$	49,027		$	41,106		$	148,670		$	147,860

Income from operations (GAAP)	$	49,788		$	1,799		$	117,989		$	22,488		$	455,972
Stock-based compensation		45,940			52,757			43,814			159,530			157,635
Acquisition related expenses and amortization		5,006			5,353			5,790			15,712			17,115
Restructuring and asset impairment charges		677			1,171			—			3,755			901
Income from operations (Non-GAAP)	$	101,411		$	61,080		$	167,593		$	201,485		$	631,623

Net income (GAAP)	$	45,762		$	10,833		$	113,953		$	40,498		$	418,017
Stock-based compensation		45,940			52,757			43,814			159,530			157,635
Acquisition related expenses and amortization		5,006			5,353			5,790			15,712			17,115
Restructuring and asset impairment charges		677			1,171			—			3,755			901
Non-cash interest expense		2,173			2,157			2,114			6,462			6,254
Non-GAAP income tax adjustment		(11,156	)		(13,447	)		(23,822	)		(30,775	)		(61,413	)
Net income (Non-GAAP)	$	88,402		$	58,824		$	141,849		$	195,182		$	538,509

Net income per share, basic (GAAP)	$	0.34		$	0.08		$	0.84		$	0.30		$	3.06
Stock-based compensation		0.34			0.39			0.32			1.17			1.15
Acquisition related expenses and amortization		0.04			0.04			0.04			0.12			0.13
Restructuring and asset impairment charges		0.01			0.01			—			0.03			0.01
Non-cash interest expense		0.02			0.02			0.02			0.05			0.04
Non-GAAP income tax adjustment		(0.10	)		(0.11	)		(0.18	)		(0.23	)		(0.44	)
Net income per share, basic (Non-GAAP)	$	0.65		$	0.43		$	1.04		$	1.44		$	3.95

Shares used in basic per share calculation GAAP and Non-GAAP		135,329			135,646			136,165			135,621			136,491

Net income per share, diluted (GAAP)	$	0.33		$	0.08		$	0.80		$	0.30		$	2.92
Stock-based compensation		0.33			0.38			0.32			1.17			1.17
Acquisition related expenses and amortization		0.04			0.04			0.04			0.12			0.12
Restructuring and asset impairment charges		0.01			0.01			—			0.03			0.01
Non-cash interest expense		0.02			0.02			0.02			0.05			0.04
Non-GAAP income tax adjustment		(0.08	)		(0.10	)		(0.16	)		(0.24	)		(0.40	)
Net income per share, diluted (Non-GAAP)⁽²⁾	$	0.65		$	0.43		$	1.02		$	1.43		$	3.86

Shares used in diluted per share calculation GAAP		139,914			136,123			143,863			136,236			145,081
Shares used in diluted per share calculation Non-GAAP		135,839			136,123			138,535			136,236			139,753

Income-based government grants (GAAP)	$	46,552		$	24,329		$	18,532		$	89,498		$	20,583
Incremental cost for manufacturing in U.S.		(11,396	)		(5,950	)		(4,085	)		(22,228	)		(4,491	)
Net IRA benefit (Non-GAAP)	$	35,156		$	18,379		$	14,447		$	67,270		$	16,092

Net cash provided by operating activities (GAAP)	$	170,138		$	127,062		$	145,855		$	346,401		$	661,330
Purchases of property and equipment		(8,533	)		(9,636	)		(23,848	)		(25,540	)		(90,326	)
Free cash flow (Non-GAAP)	$	161,605		$	117,426		$	122,007		$	320,861		$	571,004

(2) Calculation of non-GAAP diluted net income per share for the three and nine months ended September 30, 2023 excludes convertible Notes due 2023 interest expense, net of tax of less than $0.1 million from non-GAAP net income.

This press release was published by a CLEAR® Verified individual.

The MIL Network –

January 24, 2025

MIL-OSI: Range Announces Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, Oct. 22, 2024 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its third quarter 2024 financial results.

Third Quarter 2024 Highlights –

Cash flow from operating activities of $246 million
Cash flow from operations, before working capital changes, of $250 million
Capital spending of $156 million, approximately 24% of the 2024 budget
Pre-hedge NGL realizations of $25.96 per barrel – premium of $4.10 over Mont Belvieu equivalent
Natural gas differentials, including basis hedging, averaged ($0.50) per mcf to NYMEX
Production averaged 2.20 Bcfe per day, approximately 68% natural gas
Repurchased 800,000 shares at an average of $30.10 per share

Dennis Degner, the Company’s CEO, commented, “This month marks the 20th anniversary of Range drilling the first commercial Marcellus shale well. The Marcellus and Utica now produce nearly one-third of U.S. natural gas, and the U.S. has become the leading global supplier of safe, clean, affordable natural gas. We are tremendously proud of the role Range has played in this hugely impactful achievement and we are even more excited about what the future holds as global energy demand increases, improving the quality of life for billions of people living in energy poverty. We expect the lowest cost, lowest emissions intensity natural gas producers, like Range, will play an increasingly important role in meeting that growing demand.

Range has successfully demonstrated the economic durability and sustainability of its high-quality inventory through recent years’ commodity cycles. Despite cyclically low natural gas prices in the third quarter, Range once again returned capital to shareholders, invested in the business and further strengthened our financial position. With an advantaged full-cycle cost structure and an inventory measured in decades, we believe Range is well-positioned to grow its presence as a reliable energy provider while consistently delivering value to shareholders.”

Financial Discussion

Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of non-GAAP financial measures and the accompanying tables that reconcile each non-GAAP measure to its most directly comparable GAAP financial measure.

Third Quarter 2024 Results

GAAP revenues and other income for third quarter 2024 totaled $615 million, GAAP net cash provided from operating activities (including changes in working capital) was $246 million, and GAAP net income was $51 million ($0.21 per diluted share). Third quarter earnings results include a $47 million mark-to-market derivative gain due to decreases in commodity prices.

Non-GAAP revenues for third quarter 2024 totaled $680 million, and cash flow from operations before changes in working capital, a non-GAAP measure, was $250 million. Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $117 million ($0.48 per diluted share) in third quarter 2024.

The following table details Range’s third quarter 2024 unit costs per mcfe^(a):

Expenses	3Q 2024 (per mcfe)	3Q 2023 (per mcfe)	Increase (Decrease)

Direct operating^(a)	$ 0.12	$ 0.11	9%
Transportation, gathering, processing and compression^(a)	1.51	1.42	6%
Taxes other than income	0.03	0.02	50%
General and administrative^(a)	0.16	0.15	7%
Interest expense^(a)	0.14	0.15	(7%)
Total cash unit costs^(b)	1.96	1.86	5%
Depletion, depreciation and amortization (DD&A)	0.45	0.45	0%
Total unit costs plus DD&A^(b)	$ 2.41	$ 2.31	4%

(a) Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
(b) Totals may not be exact due to rounding.

The following table details Range’s average production and realized pricing for third quarter 2024^(a):

	3Q24 Production & Realized Pricing
		Natural Gas (Mcf)		Oil (Bbl)		NGLs (Bbl)		Natural Gas Equivalent (Mcfe)
		Natural Gas (Mcf)		Oil (Bbl)		NGLs (Bbl)		Natural Gas Equivalent (Mcfe)

Net production per day			1,502,106		5,594		111,465		2,204,460

Average NYMEX price		$ 2.16		$ 75.58		$ 21.86
Differential, including basis hedging			(0.50)		(11.55)		4.10
Realized prices before NYMEX hedges			1.66		64.03		25.96		2.61
Settled NYMEX hedges			0.82		5.70		0.14		0.58
Average realized prices after hedges			$ 2.48		$ 69.73		$ 26.09		$ 3.18

(a) Totals may not be exact due to rounding

Third quarter 2024 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.18 per mcfe.

The average natural gas price, including the impact of basis hedging, was $1.66 per mcf, or a ($0.50) per mcf differential to NYMEX. The Company is improving its full-year 2024 natural gas differentials versus NYMEX to a range of ($0.39) to ($0.40) per mcf.
Range’s pre-hedge NGL price during the quarter was $25.96 per barrel, approximately $4.10 above the Mont Belvieu weighted equivalent. The Company is improving it full year NGL differentials to a premium of +$2.10 – +$2.35 for the year, implying fourth quarter 2024 differentials in the +$1.00 to +$2.00 range.
Crude oil and condensate price realizations, before realized hedges, averaged $64.03 per barrel, or $11.55 below WTI (West Texas Intermediate). Range continues to expect condensate differentials to average $10.00-$13.00 below WTI.

Capital Expenditures and Operational Activity

Third quarter 2024 drilling and completion expenditures were $146 million. In addition, during the quarter, approximately $10 million was invested in acreage leasehold, gathering systems and other. Total capital spending through third quarter was $501 million, representing approximately 76% of Range’s capital budget for 2024.

The table below summarizes expected 2024 activity. Two wells in northeast Pennsylvania originally scheduled to turn-in-line (TIL) in mid-2024 have been completed but are now scheduled to TIL in early 2025 to maximize water recycling savings and take advantage of expected natural gas price improvements.

	YTD Wells TIL 3Q 2024	Remaining 2024	2024 Planned TIL
SW PA Super-Rich	9	–	9
SW PA Wet	18	9	27
SW PA Dry	3	8	11
NE PA Dry	–	–	–
Total Wells	30	17	47

Financial Position and Repurchase Activity

As of September 30, 2024, Range had net debt outstanding of approximately $1.44 billion, consisting of $1.72 billion of senior notes and $277 million in cash. During the third quarter, Range repurchased in the open market $3.0 million principal amount of 4.875% senior notes due 2025 at a discount.

During the third quarter, Range repurchased 800,000 shares at an average price of approximately $30.10. The Company has approximately $1.0 billion of availability under the share repurchase program.

Guidance – 2024

Updated Capital & Production Guidance

Range’s 2024 all-in capital budget is $645 million – $670 million. Annual production is now expected to be ~2.17 Bcfe per day for 2024, an increase of approximately 2% over the last three years of maintenance as a result of well performance and optimized gathering and compression. Liquids are expected to be over 30% of production.

Updated Full Year 2024 Expense Guidance

Direct operating expense:	$0.11 – $0.12 per mcfe
Transportation, gathering, processing and compression expense:	$1.48 – $1.50 per mcfe
Taxes other than income:	$0.03 – $0.04 per mcfe
Exploration expense:	$22 – $28 million
G&A expense:	$0.17 – $0.18 per mcfe
Net Interest expense:	$0.13 – $0.14 per mcfe
DD&A expense:	$0.45 – $0.46 per mcfe
Net brokered gas marketing expense:	$8 – $12 million

Updated 2024 Price Guidance

Based on recent market indications, Range expects to average the following price differentials for its production.

FY 2024 Natural Gas:⁽¹⁾	NYMEX minus $0.39 to $0.40
FY 2024 Natural Gas Liquids:⁽²⁾	MB plus $2.10 to $2.35 per barrel
FY 2024 Oil/Condensate:	WTI minus $10.00 to $13.00

(1) Including basis hedging
(2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

Hedging Status

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations – Financial Information.

Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of September 30, 2024, was a net loss of $16.9 million.

Conference Call Information

A conference call to review the financial results is scheduled on Wednesday, October 23 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

A simultaneous webcast of the call may be accessed at http://www.rangeresources.com. The webcast will be archived for replay on the Company’s website until November 23^rd.

Non-GAAP Financial Measures

To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles (GAAP), the Company’s earnings press release contains certain financial measures that are not presented in accordance with GAAP. Management believes certain non-GAAP measures may provide financial statement users with meaningful supplemental information for comparisons within the industry. These non-GAAP financial measures may include, but are not limited to Net Income, excluding certain items, Cash flow from operations before changes in working capital, realized prices, Net debt and Cash margin.

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods along with non-GAAP revenue disclosures.

Cash flow from operations before changes in working capital represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

Net debt is calculated as total debt less cash and cash equivalents. The Company believes this measure is helpful to investors and industry analysts who utilize Net debt for comparative purposes across the industry.

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

We believe that the presentation of PV₁₀ value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV₁₀ is based on prices and discount factors that are consistent for all companies. Because of this, PV₁₀ can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at http://www.rangeresources.com.

Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at http://www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at http://www.sec.gov or by calling the SEC at 1-800-SEC-0330.

SOURCE: Range Resources Corporation

Range Investor Contact:

Laith Sando, Vice President – Investor Relations
817-869-4267
lsando@rangeresources.com

Range Media Contact:

Mark Windle, Director of Corporate Communications
724-873-3223
mwindle@rangeresources.com


RANGE RESOURCES CORPORATION

STATEMENTS OF INCOME
Based on GAAP reported earnings with additional
details of items included in each line in Form 10-Q
(Unaudited, In thousands, except per share data)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2024			2023			%			2024			2023			%
Revenues and other income:
Natural gas, NGLs and oil sales (a)	$	533,277		$	526,718					$	1,578,728		$	1,731,382
Derivative fair value income		47,124			38,394						110,530			530,095
Brokered natural gas, marketing and other (b)		31,289			43,325						91,513			162,092
ARO settlement loss (b)		–			(1	)					(26	)		(1	)
Interest income (b)		3,188			1,279						9,507			4,016
Other (b)		155			9						193			5,477
Total revenues and other income		615,033			609,724			1	%		1,790,445			2,433,061			-26	%

Costs and expenses:
Direct operating		24,799			22,123						68,744			72,162
Direct operating – stock-based compensation (c)		486			439						1,454			1,280
Transportation, gathering, processing and compression		306,154			277,207						878,524			830,880
Taxes other than income		5,117			4,756						15,459			19,643
Brokered natural gas and marketing		32,017			45,723						96,425			156,470
Brokered natural gas and marketing – stock-based compensation (c)		571			483						1,862			1,604
Exploration		6,988			6,658						17,506			18,087
Exploration – stock-based compensation (c)		346			312						1,005			935
Abandonment and impairment of unproved properties		4,723			11,012						8,618			44,308
General and administrative		32,674			29,581						97,818			93,366
General and administrative – stock-based compensation (c)		8,639			8,446						27,099			26,461
General and administrative – lawsuit settlements		213			66						691			938
Exit costs		7,649			10,684						28,058			71,661
Deferred compensation plan (d)		(1,930	)		8,997						5,715			29,546
Interest expense		27,958			29,260						85,430			89,886
Interest expense – amortization of deferred financing costs (e)		1,343			1,339						4,060			4,032
Gain on early extinguishment of debt		(11	)		–						(254	)		(439	)
Depletion, depreciation and amortization		91,137			87,619						265,872			259,197
Gain on sale of assets		(69	)		(109	)					(222	)		(353	)
Total costs and expenses		548,804			544,596			1	%		1,603,864			1,719,664			-7	%

Income before income taxes		66,229			65,128			2	%		186,581			713,397			-74	%

Income tax expense
Current		1,282			601						5,263			3,000
Deferred		14,291			15,097						9,820			149,289
		15,573			15,698						15,083			152,289

Net income	$	50,656		$	49,430			2	%	$	171,498		$	561,108			-69	%


Net Income Per Common Share
Basic	$	0.21		$	0.20					$	0.71		$	2.30
Diluted	$	0.21		$	0.20					$	0.70		$	2.27

Weighted average common shares outstanding, as reported
Basic		240,865			241,338			0	%		240,832			239,455			1	%
Diluted		242,623			243,937			-1	%		242,802			242,144			0	%


(a) See separate natural gas, NGLs and oil sales information table.
(b) Included in Brokered natural gas, marketing and other revenues in the 10-Q.
(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.
(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.
(e) Included in interest expense in the 10-Q.

RANGE RESOURCES CORPORATION

BALANCE SHEET
(In thousands)	September 30,			December 31,
	2024			2023
	(Unaudited)			(Audited)
Assets
Current assets	$	495,220		$	528,794
Derivative assets		197,810			442,971
Natural gas and oil properties, successful efforts method		6,348,836			6,117,681
Other property and equipment		2,084			1,696
Operating lease right-of-use assets		118,988			23,821
Other		78,365			88,922
Total assets	$	7,241,303		$	7,203,885

Liabilities and Stockholders’ Equity
Current liabilities	$	1,214,860		$	580,469
Asset retirement obligations		2,395			2,395
Derivative liabilities		6,649			222
Senior notes		1,089,131			1,774,229
Deferred tax liabilities		571,095			561,288
Derivative liabilities		684			107
Deferred compensation liabilities		62,883			72,976
Operating lease liabilities		30,811			16,064
Asset retirement obligations and other liabilities		123,406			119,896
Divestiture contract obligation		271,302			310,688
Total liabilities	3,373,216			3,438,334

Common stock and retained deficit		4,360,303			4,213,585
Other comprehensive income		600			647
Common stock held in treasury		(492,816	)		(448,681	)
Total stockholders’ equity		3,868,087			3,765,551
	$	7,241,303		$	7,203,885


RECONCILIATION OF TOTAL DEBT AS REPORTED
TO NET DEBT, a non-GAAP measure
(Unaudited, in thousands)
	September 30,			December 31,
	2024			2023			%

Total debt, net of deferred financing costs, as reported	$	1,706,514		$	1,774,229			-4	%
Unamortized debt issuance costs, as reported		11,626			14,159
Less cash and cash equivalents, as reported		(277,450	)		(211,974	)
Net debt, a non-GAAP measure	$	1,440,690		$	1,576,414			-9	%


RECONCILIATION OF TOTAL REVENUES AND
OTHER INCOME TO TOTAL REVENUES AS
ADJUSTED, a non-GAAP measure
(Unaudited, in thousands)
	Three Months Ended September 30,							Nine Months Ended September 30,
	2024		2023		%			2024		2023			%

Total revenues and other income, as reported	$	615,033	$	609,724		1	%	$	1,790,445	$	2,433,061			-26	%
Adjustment for certain special items:
Total change in fair value related to derivatives
prior to settlement loss (gain)		65,141		39,048					252,165		(341,599	)
ARO settlement loss		–		1					26		1
Total revenues, as adjusted, non-GAAP	$	680,174	$	648,773		5	%	$	2,042,636	$	2,091,463			-2	%

RANGE RESOURCES CORPORATION

CASH FLOWS FROM OPERATING ACTIVITIES
(Unaudited, in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023

Net income		50,656			49,430			171,498			561,108
Adjustments to reconcile net cash provided from continuing operations:
Deferred income tax expense		14,291			15,097			9,820			149,289
Depletion, depreciation and amortization		91,137			87,619			265,872			259,197
Abandonment and impairment of unproved properties		4,723			11,012			8,618			44,308
Derivative fair value income		(47,124	)		(38,394	)		(110,530	)		(530,095	)
Cash settlements on derivative financial instruments		112,265			77,442			362,695			188,496
Divestiture contract obligation, including accretion		7,604			10,606			27,933			71,380
Allowance for bad debts		–			–			–			–
Amortization of deferred financing costs and other		927			997			3,352			3,591
Deferred and stock-based compensation		8,260			18,763			37,597			60,166
Gain on sale of assets		(69	)		(109	)		(222	)		(353	)
Gain on early extinguishment of debt		(11	)		–			(254	)		(439	)

Changes in working capital:
Accounts receivable		24,617			(29,566	)		101,530			288,415
Other current assets		20,596			(6,522	)		(1,809	)		(9,520	)
Accounts payable		(21,334	)		(8,147	)		(27,052	)		(84,291	)
Accrued liabilities and other		(20,619	)		(37,976	)		(122,424	)		(249,455	)
Net changes in working capital		3,260			(82,211	)		(49,755	)		(54,851	)
Net cash provided from operating activities		245,919			150,252			726,624			751,797



RECONCILIATION OF NET CASH PROVIDED FROM OPERATING
ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS
BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure
(Unaudited, in thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Net cash provided from operating activities, as reported	$	245,919		$	150,252		$	726,624		$	751,797
Net changes in working capital		(3,260	)		82,211			49,755			54,851
Exploration expense		6,988			6,658			17,506			18,087
Lawsuit settlements		213			66			691			938
Non-cash compensation adjustment and other		313			335			397			383
Cash flow from operations before changes in working capital – non-GAAP measure	$	250,173		$	239,522		$	794,973		$	826,056



ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
Basic:
Weighted average shares outstanding		241,676			244,446			242,133			244,179
Stock held by deferred compensation plan		(811	)		(3,108	)		(1,301	)		(4,724	)
Adjusted basic		240,865			241,338			240,832			239,455

Dilutive:
Weighted average shares outstanding		241,676			244,446			242,133			244,179
Dilutive stock options under treasury method		947			(509	)		669			(2,035	)
Adjusted dilutive		242,623			243,937			242,802			242,144

RANGE RESOURCES CORPORATION

RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES
AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO
CALCULATED CASH REALIZED NATURAL GAS, NGLs AND
OIL PRICES WITH AND WITHOUT THIRD-PARTY
TRANSPORTATION, GATHERING, PROCESSING AND
COMPRESSION COSTS, a non-GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2024			2023			%			2024			2023			%
Natural gas, NGLs and Oil Sales components:
Natural gas sales	$	234,139		$	246,976					$	715,266		$	913,915
NGLs sales		266,186			238,211						750,547			695,368
Oil sales		32,952			41,531						112,915			122,099
Total Natural Gas, NGLs and Oil Sales, as reported	$	533,277		$	526,718			1	%	$	1,578,728		$	1,731,382			-9	%

Derivative Fair Value Income, as reported	$	47,124		$	38,394					$	110,530		$	530,095
Cash settlements on derivative financial instruments – (gain) loss:
Natural gas		(107,923	)		(82,472	)					(355,030	)		(196,847	)
NGLs		(1,409	)		–						(3,310	)		–
Oil		(2,933	)		5,030						(4,355	)		8,351
Total change in fair value related to commodity derivatives prior to settlement, a non GAAP measure	$	(65,141	)	$	(39,048	)				$	(252,165	)	$	341,599

Transportation, gathering, processing and compression components:
Natural Gas	$	153,063		$	142,202					$	456,215		$	436,912
NGLs		152,624			134,754						420,975			393,281
Oil		467			251						1,334			687
Total transportation, gathering, processing and compression, as reported	$	306,154		$	277,207					$	878,524		$	830,880

Natural gas, NGL and Oil sales, including cash-settled derivatives: (c)
Natural gas sales	$	342,062		$	329,448					$	1,070,296		$	1,110,762
NGLs sales		267,595			238,211						753,857			695,368
Oil Sales		35,885			36,501						117,270			113,748
Total	$	645,542		$	604,160			7	%	$	1,941,423		$	1,919,878			1	%

Production of natural gas, NGLs and oil during the periods (a):
Natural Gas (mcf)		138,193,783			133,305,469			4	%		406,943,086			396,367,927			3	%
NGLs (bbls)		10,254,759			9,748,012			5	%		29,392,292			28,368,181			4	%
Oil (bbls)		514,659			587,488			-12	%		1,717,958			1,818,773			-6	%
Gas equivalent (mcfe) (b)		202,810,291			195,318,469			4	%		593,604,586			577,489,651			3	%

Production of natural gas, NGLs and oil – average per day (a):
Natural Gas (mcf)		1,502,106			1,448,972			4	%		1,485,194			1,451,897			2	%
NGLs (bbls)		111,465			105,957			5	%		107,271			103,913			3	%
Oil (bbls)		5,594			6,386			-12	%		6,270			6,662			-6	%
Gas equivalent (mcfe) (b)		2,204,460			2,123,027			4	%		2,166,440			2,115,347			2	%

Average prices, excluding derivative settlements and before third-party
transportation costs:
Natural Gas (per mcf)	$	1.69		$	1.85			-9	%	$	1.76		$	2.31			-24	%
NGLs (per bbl)	$	25.96		$	24.44			6	%	$	25.54		$	24.51			4	%
Oil (per bbl)	$	64.03		$	70.69			-9	%	$	65.73		$	67.13			-2	%
Gas equivalent (per mcfe) (b)	$	2.63		$	2.70			-3	%	$	2.66		$	3.00			-11	%

Average prices, including derivative settlements before third-party
transportation costs: (c)
Natural Gas (per mcf)	$	2.48		$	2.47			0	%	$	2.63		$	2.80			-6	%
NGLs (per bbl)	$	26.09		$	24.44			7	%	$	25.65		$	24.51			5	%
Oil (per bbl)	$	69.73		$	62.13			12	%	$	68.26		$	62.54			9	%
Gas equivalent (per mcfe) (b)	$	3.18		$	3.09			3	%	$	3.27		$	3.32			-2	%

Average prices, including derivative settlements and after third-party
transportation costs: (d)
Natural Gas (per mcf)	$	1.37		$	1.40			-2	%	$	1.51		$	1.70			-11	%
NGLs (per bbl)	$	11.21		$	10.61			6	%	$	11.33		$	10.65			6	%
Oil (per bbl)	$	68.82		$	61.70			12	%	$	67.49		$	62.16			9	%
Gas equivalent (per mcfe) (b)	$	1.67		$	1.67			0	%	$	1.79		$	1.89			-5	%

Transportation, gathering and compression expense per mcfe	$	1.51		$	1.42			6	%	$	1.48		$	1.44			3	%

(a) Represents volumes sold regardless of when produced.
(b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which may not be indicative of the relationship of oil and natural gas prices.
(c) Excluding third-party transportation, gathering, processing and compression costs.
(d) Net of transportation, gathering, processing and compression costs.

RANGE RESOURCES CORPORATION

RECONCILIATION OF INCOME BEFORE INCOME
TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES
EXCLUDING CERTAIN ITEMS, a non-GAAP measure
(Unaudited, In thousands, except per share data)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2024			2023			%			2024			2023			%

Income from operations before income taxes, as reported		66,229			65,128			2	%		186,581			713,397			-74	%
Adjustment for certain special items:
Gain on the sale of assets		(69	)		(109	)					(222	)		(353	)
ARO settlement loss		–			1						26			1
Change in fair value related to derivatives prior to settlement		65,141			39,048						252,165			(341,599	)
Abandonment and impairment of unproved properties		4,723			11,012						8,618			44,308
Gain on early extinguishment of debt		(11	)		–						(254	)		(439	)
Lawsuit settlements		213			66						691			938
Exit costs		7,649			10,684						28,058			71,661
Brokered natural gas and marketing – stock-based compensation		571			483						1,862			1,604
Direct operating – stock-based compensation		486			439						1,454			1,280
Exploration expenses – stock-based compensation		346			312						1,005			935
General & administrative – stock-based compensation		8,639			8,446						27,099			26,461
Deferred compensation plan – non-cash adjustment		(1,930	)		8,997						5,715			29,546

Income before income taxes, as adjusted		151,987			144,507			5	%		512,798			547,740			-6	%

Income tax expense, as adjusted
Current (a)		1,282			601						5,263			3,000
Deferred (a)		33,675			32,636						112,681			122,981

Net income, excluding certain items, a non-GAAP measure	$	117,030		$	111,270			5	%	$	394,854		$	421,759			-6	%

Non-GAAP income per common share
Basic	$	0.49		$	0.46			7	%	$	1.64		$	1.76			-7	%
Diluted	$	0.48		$	0.46			4	%	$	1.63		$	1.74			-6	%

Non-GAAP diluted shares outstanding, if dilutive		242,623			243,937						242,802			242,144

(a) Taxes are estimated to be approximately 23% for 2023 and 2024.

RANGE RESOURCES CORPORATION

RECONCILIATION OF NET INCOME, EXCLUDING
CERTAIN ITEMS AND ADJUSTED EARNINGS PER
SHARE, non-GAAP measures
(In thousands, except per share data)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023

Net income, as reported	$	50,656		$	49,430		$	171,498		$	561,108
Adjustments for certain special items:
Gain on sale of assets		(69	)		(109	)		(222	)		(353	)
ARO settlement loss		–			1			26			1
Gain on early extinguishment of debt		(11	)		–			(254	)		(439	)
Change in fair value related to derivatives prior to settlement		65,141			39,048			252,165			(341,599	)
Abandonment and impairment of unproved properties		4,723			11,012			8,618			44,308
Lawsuit settlements		213			66			691			938
Exit costs		7,649			10,684			28,058			71,661
Stock-based compensation		10,042			9,680			31,420			30,280
Deferred compensation plan		(1,930	)		8,997			5,715			29,546
Tax impact		(19,384	)		(17,539	)		(102,861	)		26,308

Net income, excluding certain items, a non-GAAP measure	$	117,030		$	111,270		$	394,854		$	421,759

Net income per diluted share, as reported	$	0.21		$	0.20		$	0.70		$	2.27
Adjustments for certain special items per diluted share:
Gain on sale of assets		–			–			–			–
ARO settlement loss		–			–			–			–
Gain on early extinguishment of debt		–			–			–			–
Change in fair value related to derivatives prior to settlement		0.27			0.16			1.04			(1.41	)
Abandonment and impairment of unproved properties		0.02			0.05			0.04			0.18
Lawsuit settlements		–			–			–			–
Exit costs		0.03			0.04			0.12			0.30
Stock-based compensation		0.04			0.04			0.13			0.13
Deferred compensation plan		(0.01	)		0.04			0.02			0.12
Adjustment for rounding differences		–			–			–			–
Tax impact		(0.08	)		(0.07	)		(0.42	)		0.11
Dilutive share impact (rabbi trust and other)		–			–			–			0.04

Net income per diluted share, excluding certain items, a non-GAAP measure	$	0.48		$	0.46		$	1.63		$	1.74

Adjusted earnings per share, a non-GAAP measure:
Basic	$	0.49		$	0.46		$	1.64		$	1.76
Diluted	$	0.48		$	0.46		$	1.63		$	1.74

RANGE RESOURCES CORPORATION

RECONCILIATION OF CASH MARGIN PER MCFE, a non-GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023

Revenues
Natural gas, NGLs and oil sales, as reported	$	533,277		$	526,718		$	1,578,728		$	1,731,382
Derivative fair value income, as reported		47,124			38,394			110,530			530,095
Less non-cash fair value loss (gain)		65,141			39,048			252,165			(341,599	)
Brokered natural gas and marketing and other, as reported		34,632			44,612			101,187			171,584
Less ARO settlement		–			1			26			1
Cash revenues		680,174			648,773			2,042,636			2,091,463

Expenses
Direct operating, as reported		25,285			22,562			70,198			73,442
Less direct operating stock-based compensation		(486	)		(439	)		(1,454	)		(1,280	)
Transportation, gathering and compression, as reported		306,154			277,207			878,524			830,880
Taxes other than income, as reported		5,117			4,756			15,459			19,643
Brokered natural gas and marketing, as reported		32,588			46,206			98,287			158,074
Less brokered natural gas and marketing stock-based compensation		(571	)		(483	)		(1,862	)		(1,604	)
General and administrative, as reported		41,526			38,093			125,608			120,765
Less G&A stock-based compensation		(8,639	)		(8,446	)		(27,099	)		(26,461	)
Less lawsuit settlements		(213	)		(66	)		(691	)		(938	)
Interest expense, as reported		29,301			30,599			89,490			93,918
Less amortization of deferred financing costs		(1,343	)		(1,339	)		(4,060	)		(4,032	)
Cash expenses		428,719			408,650			1,242,400			1,262,407

Cash margin, a non-GAAP measure	$	251,455		$	240,123		$	800,236		$	829,056

Mmcfe produced during period		202,810			195,319			593,605			577,490

Cash margin per mcfe	$	1.24		$	1.23		$	1.35		$	1.44


RECONCILIATION OF INCOME BEFORE INCOME TAXES
TO CASH MARGIN, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023

Income before income taxes, as reported	$	66,229		$	65,128		$	186,581		$	713,397
Adjustments to reconcile income before income taxes
to cash margin:
ARO settlements		–			1			26			1
Derivative fair value income		(47,124	)		(38,394	)		(110,530	)		(530,095	)
Net cash receipts on derivative settlements		112,265			77,442			362,695			188,496
Exploration expense		6,988			6,658			17,506			18,087
Lawsuit settlements		213			66			691			938
Exit costs		7,649			10,684			28,058			71,661
Deferred compensation plan		(1,930	)		8,997			5,715			29,546
Stock-based compensation (direct operating, brokered natural gas and marketing and general and administrative)		10,042			9,680			31,420			30,280
Interest – amortization of deferred financing costs		1,343			1,339			4,060			4,032
Depletion, depreciation and amortization		91,137			87,619			265,872			259,197
Gain on sale of assets		(69	)		(109	)		(222	)		(353	)
Gain on early extinguishment of debt		(11	)		–			(254	)		(439	)
Abandonment and impairment of unproved properties		4,723			11,012			8,618			44,308
Cash margin, a non-GAAP measure	$	251,455		$	240,123		$	800,236		$	829,056

The MIL Network –

January 24, 2025

MIL-OSI Asia-Pac: MoS Dr Chandra Sekhar Pemmasani addresses concluding session of two day Workshop on Modern Technologies in Survey-Resurvey for Urban Land Records at New Delhi today

Source: Government of India (2)

MoS Dr Chandra Sekhar Pemmasani addresses concluding session of two day Workshop on Modern Technologies in Survey-Resurvey for Urban Land Records at New Delhi today

More than administrative tools, accurate land records are the back bone of socio economic planning, public service delivery and conflict resolution: Dr Pemmasani

International workshop explored range of innovations including advances in survey-Resurvey techniques, Geo spatial tools, Drone and Aircraft technologies and GIS integrated solutions: MoS Dr Pemmasani

Posted On: 22 OCT 2024 5:16PM by PIB Delhi

Minister of State for Rural development Dr Chandra Sekhar Pemmasani addressed concluding session of two day Workshop on Modern Technologies in Survey-Resurvey for Urban Land Records at Dr. Ambedkar International Centre (DAIC), New Delhi today. Minister of state during his speech emphasized that more than administrative tools, accurate land records are the back bone of socio economic planning, public service delivery and conflict resolution .This international workshop explored range of innovations including advances in survey-Resurvey techniques, geo spatial tools, drone and aircraft technologies and GIS integrated solutions. The collective insights shared in this workshop will act as bedrock for building smarter and more efficient urban management system in India. This event has brought together global experts and leaders united in the mission to explore innovative solution for urban land survey, he added.

Dr. Pemmasani said that as rural land records evolved urban land management must also rise to meet the demand of rapid urbanisation of cities and land administration must keep pace to ensure equitable development. We now stand at a pivotal moment in urban governance where technology meets opportunity. More than tools like Drones, aircraft based survey and satellite imagery offer unparalleled precisions, these technologies provide Ortho rectified images (ORI) , geo referenced maps that are both accurate and truth to the earth surface. By deploying these tools we reduce human errors increase efficiency and collect consistent up-to-date data in the most challenging urban environment with tall buildings, dense vegetation and complex land usage patterns. Integrating these images into GIS platforms will turn data into actionable insights enabling urban planning real estate development infra structure management, and even disaster preparedness with unprecedented precisions.

The union minister of State added over the past decade, India, under the visionary Leadership of Prime Minister Shri Narendra Modi has made significant strides with initiatives such as the Digital India Land Records Modernization Programme (DILRMP). He added that India has digitized Records of Rights (RoR) across over 6.25 lakh villages, launched the Unique Land Parcel Identification Number (ULPIN), also known as Bhu-Aadhaar, and created seamless integration between revenue and registration systems. However, as rural land records evolve, urban land management must also rise to meet the demands of rapid urbanization. Cities are expanding vertically and horizontally, and land administration must keep pace to ensure equitable development. He emphasized that urban land management is not just a technical exercise but is the foundation of economic growth, industrial development, and social harmony.

Dr Pemmasani said that moreover by creating spatially enabled land records we can resolve longstanding issues such as overlapping ownership claims, inconsistent land valuations and boundary disputes. The time has come to move beyond traditional costly and time consuming surveys and adapt these advanced technologies for a new era in urban governance. Union minister of state pleased to learn that this workshop features impactful case studies and representative from several countries across the globe US, South Korea, Spain, Germany, India and other countries shared experiences overcoming the challenges of urban land management . This workshop is not the end but the beginning of a transformative journey. The insights gained here will shape national programme to modernize urban land records. We envision the creation of pilot projects across select cities combined with capacity building initiatives for local bodies and state officials. As we leave this workshop let us Carrie with a shared commitment to apply the knowledge technologies and solutions discussed here. Together we will create a transparent efficient and equitable system of urban land management, he added. Dr Pemmasani emphasised that urban land management is not just a technical exercise and it is the foundation of economic growth, industrial development and social harmony.

Union minister congratulated the entire department of land resources and the all officials for this one of a kind movement and presenting the modern India’s capabilities to the rest of the world.

The Department of Land Resources has sanctioned a pilot programme called the “National geospatial Knowledge-based land Survey of urban Habitations (NAKSHA)” with a view to create Land Records in about 130 cities in all the States / UTs within an expected time of one year to be followed by more phases to complete the whole exercise in about 4900 Urban Local Bodies within an expected period of 5 years.

The workshop was organized with a view to consult experts of other countries on creation and collation of land records, discuss and understand the global best practices in usage of new and emerging technologies for the benefit of the stakeholders, especially the representatives of State Governments. The workshop facilitated discussions on Advanced Land Mapping with Accurate and Efficient Ortho Rectified Image Generation using aerial photography for mapping urban land parcels and properties. The speakers from Industry partners and international experts from USA, Spain, South Korea, France, Germany, Netherlands, UK, Japan and Australia presented their views during the workshop. The workshop facilitated presentations on successful case studies innovative approaches, policy frameworks, technological advancements and stakeholder involvement.

The workshop has been an excellent gathering of experts and leaders from across the globe and from within the country and one of its kind on the important topic of Urban land survey. It facilitated discussions on the advancements and innovations in modern technologies in survey-resurvey for urban land records and also showcased cutting-edge technologies by both Indian and international firms that can revolutionize land administration in urban areas of our country.

*****

SS

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MIL OSI Asia Pacific News –

January 24, 2025

MIL-OSI Global: The Canadian Arctic shows how understanding the effects of climate change requires long-term vision

Source: The Conversation – Canada – By James Schaefer, Professor of Biology, Trent University

Embrace change, they say, or become a casualty. This adage weighed heavily on my mind during my latest research trip to the Arctic. Repeatedly, I found myself clutching the .303 calibre rifle over my shoulder — a piece of equipment I once considered unnecessary.

As my research assistants and I crossed the tundra of Victoria Island in northern Canada, firearms were only the most obvious addition to our gear. Each of us carried a whistle around our neck, a canister of bear spray on our hip, and new alertness in our routine. Back at our camp near Wellington Bay, Nunavut, an electric fence surrounded our tents. Grizzly bears were new inhabitants on this island. Safety called for different provisions and a different mindset.

After three decades, I had returned north with a purpose: to assess how tundra plants were responding in a rapidly changing climate. For my assistants and me, the plan was straightforward. We would return to the exact sites I had studied some 30 years earlier, to evaluate how they had changed during those intervening years.

By the end, I learned a more fundamental point: that perseverance, and long-term planning, are the key to enabling scientific progress and unlocking ecological secrets.

Alarming pace of change

In the Arctic, the pace of environmental change is especially troubling. Species like grizzlies and orcas are advancing northward, weather is more volatile and sea ice is shrinking — driven by temperatures rising nearly four times more quickly than the global average.

The Arctic is the earth’s air conditioner. Disruptions at the top of the world could reverberate elsewhere.

While the significance of the Arctic is planetary, an encounter with the land is intensely personal.

North of the treeline, in the expanse of arctic tundra, you take in the whole horizon. In summer, you hear the distant bugling of cranes and geese as you walk boundlessly in the midnight sun.

In winter, you may come upon a band of caribou as you travel atop the wind-sculpted snow. Once you’ve stood north of the treeline, your worldview is transformed.

I am one of those transformed individuals. As a graduate student in the 1990s, I resided at Ekalluktok — a special place on the south coast of Victoria Island where the migrations of char and caribou intersect, where Inuit have lived for thousands of years. Here I studied the abundance and variety of tundra plants.

Today, the Arctic has already blown past 2 C of warming. Understanding the effects of climate change on this island could provide insights into the dynamics of change across the entire Arctic region.

Plants, foundation of the food chain, are a top research priority. Shifts in the flora are likely to be consequential to herbivores such as muskoxen and caribou — and therefore to people.

Measuring change

Nature reveals her swings and proclivities with reluctance. To prise open those mysteries, I added a key ingredient: time. On this return trip, I intended to walk back decades to uncover the response of plants in an altered climate by using precisely the same methods at precisely the same locations as I had in the 1990s.

For deciphering ecological change, it’s a potent recipe: measure, add decades, repeat.

Measuring the vegetation, I knew, would be straightforward. In the wry words of the pioneering British botanist, John Harper, “plants stand still and wait to be counted.”

Our more immediate challenge was finding those same locations. Three decades earlier, in the days before GPS, I had marked each location with a metal stake. Now, I trusted that stakes, too, “stand still and wait to be revisited.”

For weeks, my assistants and I scoured the land for those stakes, guided by maps, memory and a metal detector. And our search — sometimes easy and direct, sometimes meandering and desperate — yielded 98 per cent of them.

At each stake, we bent low, occasionally on hands and knees, to tally the abundance of sedges, shrubs, lichens and diminutive wildflowers. It was a repeat performance from my original study almost three decades earlier.

Those repeat observations revealed long-term shifts in vegetation, some unexpected.

Grasses and sedges increased substantially, an example of arctic greening, regarded as one of the world’s clearest illustrations of climate change effects. Some species — notably purple saxifrage, the official flower of Nunavut — declined dramatically, contributing to arctic browning.

Many other plants showed no apparent change, suggesting climatic resilience, at least over decades. But across the Arctic, the picture of vegetation change remains incomplete, complicated by variations among species and regions. Sustained science will be needed to unravel this ecological complexity.

Funding the long-term

That broader message, unforeseen to me at the outset, is now clear.

Without precisely paired observations, the vegetation shifts at Ekalluktok would have been indistinct. Elegant in their simplicity, repeat observations offer a double vantage point: an instant retrospective for decoding the past and a foundation for monitoring the future.

But long-term studies are still uncommon. They demand sustained investment, at odds with conventional, short-term cycles of scientific training and funding.

Managing change starts with awareness. And in a changing world, sustained science will be essential to interpret, mitigate and steer us along a favourable path. Conservation is not a sprint, but a determined trek toward better understanding and a better future.

James Schaefer received funding from Arctic Species Conservation Fund (WWF-Canada), Kenneth M. Molson Charitable Foundation, Northern Studies Training Program (Polar Knowledge Canada), Symons Trust for Canadian Studies, and Trent University.

– ref. The Canadian Arctic shows how understanding the effects of climate change requires long-term vision – https://theconversation.com/the-canadian-arctic-shows-how-understanding-the-effects-of-climate-change-requires-long-term-vision-238496

MIL OSI – Global Reports –

January 24, 2025

MIL-OSI Australia: Fatal ATV Crash – Lilydale

Source: Tasmania Police

Fatal ATV Crash – Lilydale

Wednesday, 23 October 2024 – 8:01 am.

Around 2pm on Tuesday 22 October 2024 police and emergency services attended the scene of an ATV crash on private property at Lilydale.
Sadly an 83 year old Lilydale man who was the sole rider of the ATV passed away due to injuries sustained in the crash.
A full investigation will be conducted into the crash and a report will be prepared for the coroner.
Tasmania Police offer our heartfelt condolences and sympathy to the family, friends and loved ones of all those involved at this difficult time.

MIL OSI News –

January 24, 2025

MIL-OSI New Zealand: Open work rights return for partners of high skilled migrants

Source: New Zealand Government

The Government is ensuring New Zealand attracts and retains the workers and skills it needs by returning open work rights to partners of high-skilled migrants.

“We are committed to growing the economy and our immigration system is critical to that. From 2 December, open work rights will be available to partners of Accredited Employer Work Visa (AEWV) holders working in higher-skilled roles who earn at least 80 percent of the median wage,” Immigration Minister Erica Stanford says.

The same rights will also be available for partners of AEWV holders working in lower-skilled roles who are on a pathway to residence. The changes deliver on the coalition commitment between National and ACT to make it easier for family members of visa holders to work here.

“The previous Government’s decision to restrict the settings caused enormous distress amongst our migrant communities. We want high-skilled migrants to see New Zealand as an attractive and supportive place to move with their families. We need to build capacity in sectors facing skills shortages, like healthcare and education.

“I want a system that creates opportunities for people to come here and make a meaningful contribution, but also protects New Zealanders rights to work and thrive,” Ms Stanford says.

“The improvements we are making in immigration are restoring balance to the system, ensuring we are well-positioned to continue rebuilding the economy.”

Note for editors:

Higher-skilled roles are defined as those at levels one to three of the Australia New Zealand System of Classification of Occupations (ANZSCO), while lower-skilled roles are defined as those at levels four and five of ANZSCO.
People who already hold work visas allowing for specific employment will be able to apply for a variation of their visa conditions.

MIL OSI New Zealand News –

January 24, 2025

MIL-OSI: Weatherford Third Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Revenues of $1,409 million increased 7% year-over-year
Operating income of $243 million increased 11% year-over-year
Net income of $157 million increased 28% year-over-year; net income margin of 11.1%
Adjusted EBITDA* of $355 million increased 16% year-over-year; adjusted EBITDA margin* of 25.2% increased by 197 basis points year-over-year
Cash provided by operating activities of $262 million, an increase of $112 million sequentially and $90 million year-over-year; adjusted free cash flow* of $184 million, an increase of $88 million sequentially and $47 million year-over-year
Received credit rating upgrade from S&P Global Ratings to ‘BB-’ with positive outlook, and from Fitch to ‘BB-’ with stable outlook
Shareholder returns of $68 million for the quarter, which includes dividends payment of $18 million and share repurchases of $50 million
Board approved quarterly cash dividend of $0.25 per share payable on December 5, 2024 to shareholders of record as of November 6, 2024
Deployment of Victus™ Managed Pressure Drilling (MPD) systems in the first two deep geothermal exploration wells that have been drilled for a major operator in the Middle East
Aramco awarded Weatherford a three-year Corporate Procurement Agreement (CPA) including Cementation Products, Completions, Liner Hangers, and Whipstocks, as well as associated service agreements, to enhance its operational efficiency and strategic goals
Hosted 20^th annual FWRD conference focused on digitalization and next-generation life-of-well solutions to boost efficiency, sustainability, and performance

*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

HOUSTON, Oct. 22, 2024 (GLOBE NEWSWIRE) — Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the third quarter of 2024.

Revenues for the third quarter of 2024 were $1,409 million, an increase of 0.3% sequentially and an increase of 7% year-over-year. Operating income was $243 million in the third quarter of 2024, compared to $264 million in the second quarter of 2024 and $218 million in the third quarter of 2023. Net income in the third quarter of 2024 was $157 million, with an 11.1% margin, an increase of 26% or 225 basis points sequentially, and an increase of 28% or 177 basis points year-over-year. Adjusted EBITDA* was $355 million, a 25.2% margin, a decrease of 3% or 78 basis points sequentially, and an increase of 16% or 197 basis points year-over-year. Basic income per share in the third quarter of 2024 was $2.14 compared to $1.71 in the second quarter of 2024 and $1.70 in the third quarter of 2023. Diluted income per share in the third quarter of 2024 was $2.06 compared to $1.66 in the second quarter of 2024 and $1.66 in the third quarter of 2023.

Third quarter 2024 cash flows provided by operating activities were $262 million, compared to $150 million in the second quarter of 2024 and $172 million in the third quarter of 2023. Adjusted free cash flow* was $184 million, an increase of $88 million sequentially and $47 million year-over-year. Capital expenditures were $78 million in the third quarter of 2024, compared to $62 million in the second quarter of 2024 and $42 million in the third quarter of 2023.

Girish Saligram, President and Chief Executive Officer, commented, “I want to thank the Weatherford team for once again delivering strong margins and adjusted free cash flow despite a volatile macro environment and short cycle activity reductions. The margin performance underscores our ability to deliver strong returns in a softer market environment. Despite continued North America weakness, customer scheduling delays in Latin America and a reduced activity outlook in certain other geographies, we still expect strong revenue growth and adjusted EBITDA margins of greater than 25% for the full year.

In the third quarter, Weatherford acquired Datagration, enhancing our position with one of the industry’s most advanced digital offerings for production and asset optimization. The acquisition demonstrates our commitment to driving innovation across our technology portfolio and accelerating our growth in the digital transformation of the energy industry. Following our announcement in the third quarter regarding Weatherford’s first-ever shareholder return program, we paid our first quarterly dividend of $0.25 per share on September 12, 2024, to shareholders on record as of August 13, 2024, and as of September 30, 2024, we have bought back $50 million of ordinary shares.

While the macroeconomic environment is volatile and there is heightened risk of geopolitical events creating sector challenges, Weatherford remains focused on fulfillment initiatives, acquisition integrations, and technology commercialization, which should drive further financial performance.”

*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

Operational Highlights

Aramco awarded Weatherford a three-year CPA, including Cementation Products, Completions, Liner Hangers, and Whipstocks, as well as associated service agreements, to enhance its operational efficiency and strategic goals.
A major operator in the Gulf of Mexico awarded Weatherford a three-year services contract to deliver Plug & Abandonment activities utilizing our Heavy Duty Pulling & Jacking Unit and multiple service lines.
A National Oil Company (NOC) in the Middle East awarded Weatherford a three-year contract for Drilling Services in unconventional resources fields.
PTTEP awarded Weatherford a multi-year contract for Wireline services in Thailand.
An NOC in the Middle East awarded Weatherford a two-year contract for Liner Hanger and associated services for deep drilling.
A major operator awarded Weatherford a three-year contract to provide MPD services in the Middle East, marking the first time it will utilize this technology.
An NOC in the Middle East awarded Weatherford a three-year contract for Fishing and Milling services.
An NOC awarded Weatherford a five-year contract extension for the supply of Downhole Completion Equipment for deployment in the Middle East.
Shell awarded Weatherford a three-year contract for Dual Stage Cementing technology to be deployed in onshore Australia.
Kuwait Energy awarded Weatherford a two-year contract for Cased Hole Wireline Services in onshore Iraq.
bp awarded Weatherford a two-year contract for multilateral installations and associated services for offshore operations in Azerbaijan.
JVGAS in Algeria awarded Weatherford a three-year contract for velocity string accessories and associated services and awarded a two-year contract for the supply of Fishing and Casing exiting.

Technology Highlights

Drilling & Evaluation (“DRE”)
- An NOC deployed Weatherford MPD solutions in its first two deep geothermal exploration wells in the Middle East. This innovative use of MPD technology mitigates risks from elevated geothermal gradients during exploration drilling.
- Weatherford celebrates 25 years of Compact Memory Logging technology, with over 10,000 deployments, consistently delivering value and reliability to our customers.
Well Construction and Completions (“WCC”)
- In Norway, Weatherford successfully integrated the Vero™ system into an offshore rig control system, enabling further efficiency while maintaining well integrity. This integration allows existing rig crews to operate the Vero system autonomously.
- Perenco deployed Weatherford’s digital ForeSite^® Sense optical monitoring system to oversee injectivity testing performance for the Poseidon carbon capture and storage project, the UK’s first well to inject CO₂ underground.
- Weatherford launched its new Remote-Opening Barrier Valve that decreases risk and time associated with conventional well barriers.
Production and Intervention (“PRI”)
- The acquisition of Datagration Solutions Inc. added the PetroVisor and EcoVisor platforms to Weatherford’s Digital Solutions portfolio, enhancing the integration of customer data with ForeSite and Cygnet® for improved real-time analysis and decision-making.
- Weatherford deployed its AlphaV system for a major operator in Norway in a complex application that significantly reduced time by eliminating wellbore preparation.

Shareholder Return

During the third quarter of 2024, Weatherford repurchased shares for approximately $50 million and paid dividends of $18 million, resulting in total shareholder returns of $68 million.

On October 17, 2024, our Board declared a cash dividend of $0.25 per share of the Company’s ordinary shares, payable on December 5, 2024, to shareholders of record as of November 6, 2024.

Results by Reportable Segment

Drilling and Evaluation (“DRE”)

	Three Months Ended									Variance
($ in Millions)	September 30, 2024			June 30, 2024			September 30, 2023			Seq.		YoY
Revenue	$	435		$	427		$	388		2	%	12	%
Segment Adjusted EBITDA	$	111		$	130		$	111		(15	)%	—	%
Segment Adj EBITDA Margin		25.5	%		30.4	%		28.6	%	(493	)bps	(309	)bps

Third quarter 2024 DRE revenue of $435 million increased by $8 million, or 2% sequentially, primarily from higher Drilling-related Services activity partly offset by lower MPD asset sales and lower international Wireline activity. Year-over-year DRE revenues increased by $47 million, or 12%, primarily from higher Wireline activity and Drilling-related Services activity in Middle East/North Africa/Asia.

Third quarter 2024 DRE segment adjusted EBITDA of $111 million decreased by $19 million, or 15% sequentially, primarily driven by lower MPD asset sales and lower international Wireline activity partly offset by higher fall-through in Drilling-related Services. Year-over-year DRE segment adjusted EBITDA remained flat as higher Drilling-related services were offset by lower margin fall through in MPD and Wireline.

Well Construction and Completions (“WCC”)

	Three Months Ended									Variance
($ in Millions)	September 30, 2024			June 30, 2024			September 30, 2023			Seq.		YoY
Revenue	$	509		$	504		$	459		1	%	11	%
Segment Adjusted EBITDA	$	151		$	145		$	119		4	%	27	%
Segment Adj EBITDA Margin		29.7	%		28.8	%		25.9	%	90	bps	374	bps

Third quarter 2024 WCC revenue of $509 million increased by $5 million, or 1% sequentially, primarily due to higher international Well Services and Liner Hangers activity partly offset by lower Cementation Products in North America and Middle East/North Africa/Asia. Year-over-year WCC revenues increased by $50 million, or 11%, primarily due to higher international Completions and Liner Hangers activity, partly offset by a decrease in activity in North America.

Third quarter 2024 WCC segment adjusted EBITDA of $151 million increased by $6 million, or 4% sequentially, primarily due to higher international Well Services and Liner Hangers activity and product and service mix partly offset by lower Tubular Running Services activity. Year-over-year WCC segment adjusted EBITDA increased by $32 million, or 27%, primarily due to higher activity and fall-through in Tubular Running Services, Completions and Well Services.

Production and Intervention (“PRI”)

	Three Months Ended									Variance
($ in Millions)	September 30, 2024			June 30, 2024			September 30, 2023			Seq.		YoY
Revenue	$	371		$	369		$	371		1	%	—	%
Segment Adjusted EBITDA	$	83		$	85		$	86		(2	)%	(3	)%
Segment Adj EBITDA Margin		22.4	%		23.0	%		23.2	%	(66	)bps	(81	)bps

Third quarter 2024 PRI revenue of $371 million increased by $2 million, or 1% sequentially, mainly due to increased Digital Solutions and Pressure Pumping activity partly offset by lower Subsea Intervention activity in Latin America. Year-over-year PRI revenue was flat, as higher international Intervention Services & Drilling Tools activity was offset by a decline in Pressure Pumping activity.

Third quarter 2024 PRI segment adjusted EBITDA of $83 million, decreased by $2 million, or 2% sequentially, primarily from lower Artificial Lift product mix and lower Subsea Intervention fall-through. Year-over-year PRI segment adjusted EBITDA decreased by $3 million, or 3% year-over-year, primarily due to lower Pressure Pumping activity.

Revenue by Geography

	Three Months Ended								Variance
*($ in Millions)*	September 30, 2024		June 30, 2024		September 30, 2023		Seq.		YoY
North America	$	266	$	252	$	269	6	%	(1	)%

International	$	1,143	$	1,153	$	1,044	(1	)%	9	%
Latin America		358		353		357	1	%	—	%
Middle East/North Africa/Asia		542		542		471	—	%	15	%
Europe/Sub-Sahara Africa/Russia		243		258		216	(6	)%	13	%
Total Revenue	$	1,409	$	1,405	$	1,313	0.3	%	7	%

North America

Third quarter 2024 North America revenue of $266 million increased by $14 million, or 6% sequentially, primarily due to activity increase in Canada due to favorable seasonality and activity increase offshore in the Gulf of Mexico. Year-over-year, North America decreased by $3 million, or 1%, primarily from lower Tubular Running Services and Cementation Products activity offshore in the Gulf of Mexico, partly offset by an increase in Wireline activity.

International

Third quarter 2024 international revenue of $1,143 million decreased 1% sequentially and increased 9% year-over-year.

Third quarter 2024 Latin America revenue of $358 million increased by $5 million, or 1% sequentially, primarily due to higher Well Services in Brazil and Drilling-related Services in Mexico. Year-over-year, Latin America revenue increased by $1 million.

Third quarter 2024 Middle East/North Africa/Asia revenue of $542 million was flat sequentially, mainly due to increased activity in United Arab Emirates partly offset by a decrease in Integrated Services & Projects activity in Oman and a decrease of activity in Kuwait. Year-over-year, the Middle East/North Africa/Asia revenue increased by $71 million, or 15%, due to an increase in activity across all product lines within the DRE and WCC segments, primarily in United Arab Emirates, Saudi Arabia, Asia and Kuwait.

Third quarter 2024 Europe/Sub-Sahara Africa/Russia revenue of $243 million decreased by $15 million or 6% sequentially, mainly driven by lower MPD asset sales. Year-over-year Europe/Sub-Sahara Africa/Russia revenue increased by $27 million, or 13%, due to increased activity across all segments.

About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Visit weatherford.com for more information and connect with us on social media.

Conference Call Details

Weatherford will host a conference call on Wednesday, October 23, 2024, to discuss the Company’s results for the third quarter ended September 30, 2024. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).

Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.

Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.

A telephonic replay of the conference call will be available until November 6, 2024, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 6410466. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.

Contacts

For Investors:
Luke Lemoine
Senior Vice President, Corporate Development and Investor Relations
+1 713-836-7777
investor.relations@weatherford.com

For Media:
Kelley Hughes
Senior Director, Communications & Employee Engagement
+1 713-836-4193
media@weatherford.com

Forward-Looking Statements

This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, based on factors including but not limited to: global political disturbances, war, terrorist attacks, changes in global trade policies, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflict, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to address and participate in changes to the market demands for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.

These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission (the “SEC”), including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled


Weatherford International plc
Selected Statements of Operations (Unaudited)

	Three Months Ended									Nine Months Ended
*($ in Millions, Except Per Share Amounts)*	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024				September 30, 2023
Revenues:
DRE Revenues	$	435		$	427		$	388		$	1,284			$	1,154
WCC Revenues		509			504			459			1,471				1,320
PRI Revenues		371			369			371			1,088				1,086
All Other		94			105			95			329				213
Total Revenues		1,409			1,405			1,313			4,172				3,773

Operating Income:
DRE Segment Adjusted EBITDA^[1]	$	111		$	130		$	111		$	371			$	325
WCC Segment Adjusted EBITDA^[1]		151			145			119			416				324
PRI Segment Adjusted EBITDA^[1]		83			85			86			241				235
All Other^[2]		23			23			7			73				25
Corporate^[2]		(13	)		(18	)		(18	)		(45	)			(44	)
Depreciation and Amortization		(89	)		(86	)		(83	)		(260	)			(244	)
Share-based Compensation		(10	)		(12	)		(9	)		(35	)			(26	)
Other (Charges) Credits		(13	)		(3	)		5			(21	)			9
Operating Income		243			264			218			740				604

Other Expense:
Interest Expense, Net of Interest Income of $13, $17, $15, $44 and $47		(24	)		(24	)		(30	)		(77	)			(92	)
Loss on Blue Chip Swap Securities		—			(10	)		—			(10	)			(57	)
Other Expense, Net		(41	)		(20	)		(24	)		(83	)	—		(98	)
Income Before Income Taxes		178			210			164			570				357
Income Tax Provision		(12	)		(73	)		(33	)		(144	)			(55	)
Net Income		166			137			131			426				302
Net Income Attributable to Noncontrolling Interests		9			12			8			32				25
Net Income Attributable to Weatherford	$	157		$	125		$	123		$	394			$	277

Basic Income Per Share	$	2.14		$	1.71		$	1.70		$	5.39			$	3.85
Basic Weighted Average Shares Outstanding		73.2			73.2			72.1			73.1				71.9

Diluted Income Per Share^[3]	$	2.06		$	1.66		$	1.66		$	5.25			$	3.76
Diluted Weighted Average Shares Outstanding		75.2			75.3			73.7			75.0				73.6

^[1]	Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments. Research and development expenses are included in segment adjusted EBITDA.
^[2]	All Other results were from non-core business activities related to all other segments (profit and loss) and Corporate includes overhead support and centrally managed or shared facility costs. All Other and Corporate do not individually meet the criteria for segment reporting.
^[3]	Included the maximum potentially dilutive shares contingently issuable for an acquisition consideration during the three months ended September 30, 2024, the value of which was adjusted out of Net Income Attributable to Weatherford in calculating diluted income per share.


Weatherford International plc
Selected Balance Sheet Data (Unaudited)

*($ in Millions)*	September 30, 2024		December 31, 2023
Assets:
Cash and Cash Equivalents	$	920	$	958
Restricted Cash		58		105
Accounts Receivable, Net		1,231		1,216
Inventories, Net		919		788
Property, Plant and Equipment, Net		1,050		957
Intangibles, Net		356		370

Liabilities:
Accounts Payable		723		679
Accrued Salaries and Benefits		328		387
Current Portion of Long-term Debt		21		168
Long-term Debt		1,627		1,715

Shareholders’ Equity:
Total Shareholders’ Equity		1,356		922

Weatherford International plc
Selected Cash Flows Information (Unaudited)

	Three Months Ended										Nine Months Ended
*($ in Millions)*		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Cash Flows From Operating Activities:
Net Income		$	166		$	137		$	131		$	426		$	302
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation and Amortization		89			86			83			260			244
Foreign Exchange Losses		35			8			15			58			73
Loss on Blue Chip Swap Securities		—			10			—			10			57
Gain on Disposition of Assets		(1		)	(25		)	(4		)	(33		)	(11		)
Deferred Income Tax Provision (Benefit)		(19		)	13			(14		)	8			(67		)
Share-Based Compensation		10			12			9			35			26
Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits		30			(22		)	(73		)	(144		)	(235		)
Other Changes, Net		(48		)	(69		)	25			(77		)	68
Net Cash Provided By Operating Activities		262			150			172			543			457

Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment		(78		)	(62		)	(42		)	(199		)	(142		)
Proceeds from Disposition of Assets		—			8			7			18			21
Purchases of Blue Chip Swap Securities		—			(50		)	—			(50		)	(110		)
Proceeds from Sales of Blue Chip Swap Securities		—			40			—			40			53
Business Acquisitions, Net of Cash Acquired		(15		)	—			—			(51		)	(4		)
Proceeds from Sale of Investments		—			—			—			41			33
Other Investing Activities		1			3			(1		)	(6		)	(9		)
Net Cash Used In Investing Activities		(92		)	(61		)	(36		)	(207		)	(158		)

Cash Flows From Financing Activities:
Repayments of Long-term Debt		(5		)	(87		)	(76		)	(264		)	(306		)
Distributions to Noncontrolling Interests		(10		)	(9		)	(15		)	(19		)	(21		)
Tax Remittance on Equity Awards Vested		—			(1		)	—			(9		)	(54		)
Share Repurchases		(50		)	—			—			(50		)	—
Dividends Paid		(18		)	—			—			(18		)	—
Other Financing Activities		(6		)	(5		)	—			(18		)	(7		)
Net Cash Used In Financing Activities		$	(89	)	$	(102	)	$	(91	)	$	(378	)	$	(388	)

Weatherford International plc

Non-GAAP Financial Measures Defined (Unaudited)

We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted EBITDA margin* – Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted Free Cash Flow* – Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Net Debt* – Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.

Net Leverage* – Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

*Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled


Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)


	Three Months Ended									Nine Months Ended
*($ in Millions, Except Margin in Percentages)*	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Revenues	$	1,409		$	1,405		$	1,313		$	4,172		$	3,773
Net Income Attributable to Weatherford	$	157		$	125		$	123		$	394		$	277
Net Income Margin		11.1	%		8.9	%		9.4	%		9.4	%		7.3	%
Adjusted EBITDA*	$	355		$	365		$	305		$	1,056		$	865
Adjusted EBITDA Margin*		25.2	%		26.0	%		23.2	%		25.3	%		22.9	%

Net Income Attributable to Weatherford	$	157		$	125		$	123		$	394		$	277
Net Income Attributable to Noncontrolling Interests		9			12			8			32			25
Income Tax Provision		12			73			33			144			55
Interest Expense, Net of Interest Income of $13, $17, $15, $44 and $47		24			24			30			77			92
Loss on Blue Chip Swap Securities		—			10			—			10			57
Other Expense, Net		41			20			24			83			98
Operating Income		243			264			218			740			604
Depreciation and Amortization		89			86			83			260			244
Other Charges (Credits)^[1]		13			3			(5	)		21			(9	)
Share-Based Compensation		10			12			9			35			26
Adjusted EBITDA*	$	355		$	365		$	305		$	1,056		$	865

Net Cash Provided By Operating Activities	$	262		$	150		$	172		$	543		$	457
Capital Expenditures for Property, Plant and Equipment		(78	)		(62	)		(42	)		(199	)		(142	)
Proceeds from Disposition of Assets		—			8			7			18			21
Adjusted Free Cash Flow*	$	184		$	96		$	137		$	362		$	336

^[1]	Other charges (credits) in the three and nine months ended September 30, 2024, primarily includes fees to third-party financial institutions to facilitate loans between those financial institutions and our largest customer in Mexico, who in turn paid certain of our outstanding receivables.

*Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined


Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)



*($ in Millions)*	September 30, 2024			June 30, 2024			September 30, 2023
Current Portion of Long-term Debt	$	21		$	20		$	91
Long-term Debt		1,627			1,628			1,864
Total Debt	$	1,648		$	1,648		$	1,955

Cash and Cash Equivalents	$	920		$	862		$	839
Restricted Cash		58			58			107
Total Cash	$	978		$	920		$	946

Components of Net Debt
Current Portion of Long-term Debt	$	21		$	20		$	91
Long-term Debt		1,627			1,628			1,864
Less: Cash and Cash Equivalents		920			862			839
Less: Restricted Cash		58			58			107
Net Debt*	$	670		$	728		$	1,009

Net Income for trailing 12 months	$	534		$	500		$	359
*Adjusted EBITDA for trailing 12 months**	$	1,377		$	1,327		$	1,131

*Net Leverage (Net Debt/Adjusted EBITDA)**		0.5	x		0.5	x		0.9	x

*Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined

The MIL Network –

January 24, 2025

MIL-OSI: The clock is ticking on Activeport’s $5.3 Million Rights Issue

Source: GlobeNewswire (MIL-OSI)

SYDNEY, Oct. 22, 2024 (GLOBE NEWSWIRE) — Activeport Group (ASX: ATV) has announced a significant financial move by launching a rights issue aimed at raising $5.3 million to bolster their software and Software-as-a-Service (SaaS) business ventures.

In an attractive offer, shares are being made available at a 50% discount, providing an enticing opportunity for investors. As part of this initiative, shareholders will receive one free option for every three shares they purchase. The clock is ticking with firms bids due by Friday 1 November.

Highlights:

3 for 4 Renounceable Rights Issue to raise up to $5.3 million
Attractively priced at 2 cents per share
Discount of 50% to the September 30-day VWAP
With every 3 New Shares, shareholders receive 1 free attaching New Option
New Options will have Exercise Price of 10 cents, term of 3 years
Shareholders can trade their rights and apply for additional shares and options
Rights to start trading from December 2024

The funds raised from the rights issue will be strategically utilised to strengthen Activeport’s balance sheet and provide working capital for accelerating growth. This capital injection will support hiring additional staff to enhance operations, expanding the SaaS portfolio and broadening the company’s global market presence.

With a high gross margin exceeding 90% on its software products, Activeport has the potential to deliver significant shareholder returns, as its recurring revenue base grows. The company targets a deep global market, focusing on telecommunications and data centres, which delivers significant revenue per customer. And with cutting-edge GPU orchestration software optimised for the technically demanding cloud gaming industry, Activeport is perfectly positioned to tackle the emerging artificial intelligence market using the same advanced software.

“Activeport has achieved profitability and established itself as a leading vendor of orchestration software for networks, data centres, cloud gaming, and artificial intelligence. We have significant projects underway in Asia, India, and the Middle East and an extensive pipeline of new opportunities in front of us.” Chairman Peter Christie stated “This fundraising will provide a solid foundation on which we can grow our recurring revenue base to achieve consistent, positive free cash flow. I look forward to continued shareholder support as we advance Activeport to the next level and deliver value for shareholders.”

In addition, this week Activeport announced a strategic partnership with Australia’s FibreconX to orchestrate services across its new national dark fibre network. By integrating FibreconX with Activeport’s automation software, customers can create self-service networks that connect customers in Australia’s major commercial centres to all the major national data centres. This partnership empowers enterprise customers to build new networks that redefine speed, cost efficiency, flexibility, and connectivity in this era of AI.

For more information on the Rights Issue, check the recent Activeport ASX announcements on the website- Link here. Activeport also held a webinar 16 October 2024 which is now available to view on YouTube.

About Activeport
Headquartered in Australia, Activeport develops automation software and customer self-service portals for global telecommunication providers. The Activeport product suite enables network automation, minimising operational costs, accelerating ‘time to revenue; and improving customer experience.
For more information: https://www.activeport.com.au

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cdd6f0f8-eff6-4248-915d-5096ff5dbe76

The MIL Network –

January 24, 2025

MIL-OSI: First Busey Corporation Announces 2024 Third Quarter Earnings

Source: GlobeNewswire (MIL-OSI)

CHAMPAIGN, Ill., Oct. 22, 2024 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE)

Net Income of $32.0 million
Diluted EPS of $0.55

THIRD QUARTER 2024 HIGHLIGHTS

Adjusted net income¹ of $33.5 million, or $0.58 per diluted common share
Noninterest income of $36.0 million, or 30.5% of operating revenue¹
Record high quarterly revenue for the Wealth Management operating segment
Tangible book value per common share¹ of $18.19 at September 30, 2024, compared to $16.97 at June 30, 2024, and $15.07 at September 30, 2023, a year-over-year increase of 20.7%
Tangible common equity¹ increased to 8.96% of tangible assets at September 30, 2024, compared to 8.36% at June 30, 2024, and 7.06% at September 30, 2023
Announced transformative partnership with CrossFirst Bankshares

For additional information, please refer to the 3Q24 Earnings Investor Presentation.

MESSAGE FROM OUR CHAIRMAN & CEO

Third Quarter Financial Results

Net income for First Busey Corporation (“Busey,” “Company,” “we,” “us,” or “our”) was $32.0 million for the third quarter of 2024, or $0.55 per diluted common share, compared to $27.4 million, or $0.47 per diluted common share, for the second quarter of 2024, and $30.7 million, or $0.54 per diluted common share, for the third quarter of 2023. Adjusted net income¹, which excludes the impact of acquisition and restructuring expenses, was $33.5 million, or $0.58 per diluted common share, for the third quarter of 2024, compared to $29.0 million, or $0.50 per diluted common share, for the second quarter of 2024 and $30.7 million or $0.55 per diluted common share for the third quarter of 2023. Annualized return on average assets and annualized return on average tangible common equity¹ were 1.06% and 12.80%, respectively, for the third quarter of 2024. Annualized adjusted return on average assets¹ and annualized adjusted return on average tangible common equity¹ were 1.11% and 13.41%, respectively, for the third quarter of 2024.

Third quarter results included $0.8 million in net securities gains, nearly all of which were unrealized, as well as immaterial follow-on adjustments from the mortgage servicing rights sale previously announced in the first quarter of 2024. Excluding these items, adjusted noninterest income¹ was $35.1 million, or 29.9% of operating revenue¹, during the third quarter of 2024, compared to $33.9 million, or 29.1% of operating revenue, for the second quarter of 2024 and $31.3 million, or 28.7% of operating revenue, for the third quarter of 2023. Further adjusted net income¹ was $32.9 million for the third quarter of 2024 with these items excluded, equating to further adjusted earnings¹ of $0.57 per diluted common share.

Pre-provision net revenue¹ was $41.7 million for the third quarter of 2024, compared to $41.1 million for the second quarter of 2024 and $38.1 million for the third quarter of 2023. Pre-provision net revenue to average assets¹ was 1.38% for the third quarter of 2024, compared to 1.37% for the second quarter of 2024, and 1.24% for the third quarter of 2023. Adjusted pre-provision net revenue¹ was $44.1 million for the third quarter of 2024, compared to $42.6 million for the second quarter of 2024 and $40.5 million for the third quarter of 2023. Adjusted pre-provision net revenue to average assets¹ was 1.46% for the third quarter of 2024, compared to 1.42% for the second quarter of 2024 and 1.32% for the third quarter of 2023.

Our fee-based businesses continue to add revenue diversification. Total noninterest income was $36.0 million for the third quarter of 2024, compared to $33.8 million for the second quarter of 2024 and $31.0 million for the third quarter of 2023. Busey’s Wealth Management and FirsTech operating segments contributed $16.2 million and $5.6 million, respectively, to our noninterest income for the third quarter of 2024, representing 60.4% of noninterest income on a combined basis.

Busey views certain non-operating items, including acquisition-related expenses and restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). Non-operating pretax adjustments for acquisition and restructuring expenses¹ were $1.9 million in the third quarter of 2024. Busey believes that its non-GAAP measures (which are identified with the endnote labeled as 1) facilitate the assessment of its financial results and peer comparability. For more information and a reconciliation of these non-GAAP measures in tabular form, see “Non-GAAP Financial Information“.

We remain deliberate in our efforts to prudently manage our expense base and operating efficiency given the economic outlook. Noninterest expense was $75.9 million in the third quarter of 2024, compared to $75.5 million in the second quarter of 2024 and $70.9 million in the third quarter of 2023. Adjusted core expense¹, which excludes the amortization of intangible assets and new markets tax credits, acquisition and restructuring expenses, and the provision for unfunded commitments, was $71.0 million in the third quarter of 2024, compared to $71.1 million in the second quarter of 2024 and $66.0 million in the third quarter of 2023. The year-over-year comparable period growth in adjusted core expense can be attributed primarily to the acquisition of M&M and general inflationary pressures on compensation and benefits and to a lesser extent certain other expense categories.

Quarterly pre-tax expense synergies resulting from our acquisition of Merchants and Manufacturers Bank Corporation (the “M&M acquisition”) are anticipated to be $1.6 million to $1.7 million per quarter when fully realized. Quarterly run-rate savings are projected to be achieved by the first quarter of 2025. During the third quarter of 2024, we achieved approximately 79% of the full quarterly savings. We expect to continue to prudently manage our expenses and to realize increased rates of M&M acquisition synergies during the final quarter of 2024.

Planned Partnership with CrossFirst

On August 26, 2024, Busey and CrossFirst Bankshares, Inc. (“CrossFirst”) entered into an agreement and plan of merger (the “merger agreement”) pursuant to which CrossFirst will merge with and into Busey (the “merger”) and CrossFirst’s wholly-owned subsidiary, CrossFirst Bank, will merge with and into Busey Bank. This partnership will create a premier commercial bank in the Midwest, Southwest, and Florida, with 77 full-service locations across 10 states—Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas—and approximately $20 billion in combined assets, $17 billion in total deposits, $15 billion in total loans, and $14 billion in wealth assets under care.

Under the terms of the merger agreement, CrossFirst stockholders will have the right to receive for each share of CrossFirst common stock 0.6675 of a share of Busey’s common stock. Upon completion of the transaction, Busey’s stockholders will own approximately 63.5% of the combined company and CrossFirst’s stockholders will own approximately 36.5% of the combined company, on a fully-diluted basis. Busey common stock will continue to trade on the Nasdaq under the “BUSE” stock ticker symbol.

Completion of the merger is subject to customary closing conditions, including the approval of both Busey and CrossFirst stockholders and the regulatory approvals for the merger and the bank merger. With approvals, the parties expect to close the merger in the first or second quarter of 2025. The combined holding company will continue to operate under the First Busey Corporation name and the combined bank will operate under the Busey Bank name. It is anticipated that CrossFirst Bank will merge with and into Busey Bank in mid-2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank. In connection with the merger, Busey incurred one-time pretax acquisition-related expenses of $1.3 million during the third quarter of 2024.

For further details on the merger, see Busey’s Current Report on Form 8‑K announcing the merger, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 27, 2024.

Busey’s Conservative Banking Strategy

Busey’s financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.

The quality of our core deposit franchise is a critical value driver of our institution. Our granular deposit base continues to position us well, with core deposits¹ representing 96.5% of our deposits as of September 30, 2024. Our retail deposit base was comprised of more than 253,000 accounts with an average balance of $22 thousand and an average tenure of 16.7 years as of September 30, 2024. Our commercial deposit base was comprised of more than 33,000 accounts with an average balance of $97 thousand and an average tenure of 12.6 years as of September 30, 2024. We estimate that 29% of our deposits were uninsured and uncollateralized² as of September 30, 2024, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

Asset quality remains strong by both Busey’s historical and current industry trends. Non-performing assets decreased to $8.3 million during the third quarter of 2024, representing 0.07% of total assets. Busey’s results for the third quarter of 2024 include an insignificant provision expense for credit losses and a $0.4 million provision expense for unfunded commitments. The allowance for credit losses was $85.0 million as of September 30, 2024, representing 1.09% of total portfolio loans outstanding, and providing coverage of 10.34 times our non-performing loan balance. Busey recorded net charge-offs of $0.2 million in the third quarter of 2024. As of September 30, 2024, our commercial real estate loan portfolio of investor-owned office properties within Central Business District³ areas was minimal at $2.1 million. Our credit performance continues to reflect our highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with our company.

The strength of our balance sheet is also reflected in our capital foundation. In the third quarter of 2024, our Common Equity Tier 1 ratio⁴ was 13.78% and our Total Capital to Risk Weighted Assets ratio⁴ was 18.19%. Our regulatory capital ratios continue to provide a buffer of more than $580 million above levels required to be designated well-capitalized. Our Tangible Common Equity ratio¹ increased to 8.96% during the third quarter of 2024, compared to 8.36% for the second quarter of 2024 and 7.06% for the third quarter of 2023. Busey’s tangible book value per common share¹ increased to $18.19 at September 30, 2024, from $16.97 at June 30, 2024, and $15.07 at September 30, 2023, reflecting a 20.7% year-over-year increase. During the third quarter of 2024, we paid a common share dividend of $0.24.

Community Banking

In July 2024—based on their community involvement and academic achievements—Busey awarded 10 deserving students from across Busey’s footprint in Illinois, Missouri, Florida, and Indiana, a $2,500 scholarship to support their continuing education and bright futures. With 70 applications received, and a record number of eligible applicants, the students with the top scores, as determined by Busey’s Scholarship Committee, averaged a 4.16 GPA. Since the inception of the Busey Bank Bridge Scholarship program in 2022, Busey has awarded 30 scholarships to deserving students for a total $75,000. Full details on the scholarship’s eligibility criteria and application process can be found at https://www.busey.com/busey/busey-bank-bridge-scholarship.

As we build upon Busey’s forward momentum and our strategic growth plans, we are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal shareholders. With our strong capital position, an attractive core funding base, and a sound credit foundation, we remain confident that we are well positioned as we move into the final quarter of 2024 and into 2025. We are mindful of the evolving economic outlook and remain focused on balance sheet strength, profitability, and growth, in that order. The pending CrossFirst transaction fits with our acquisition strategy and we are excited to welcome our CrossFirst colleagues into the Busey family.

		Van A. Dukeman
		Chairman and Chief Executive Officer
		First Busey Corporation


SELECTED FINANCIAL HIGHLIGHTS *(unaudited)*
(dollars in thousands, except per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
EARNINGS & PER SHARE AMOUNTS
Net income	$	32,004		$	27,357		$	30,666		$	85,586		$	96,816
Diluted earnings per common share		0.55			0.47			0.54			1.49			1.72
Cash dividends paid per share		0.24			0.24			0.24			0.72			0.72
Pre-provision net revenue^{1, 2}		41,744			41,051			38,139			129,168			125,593
Operating revenue²		117,688			116,311			109,084			343,676			336,146

Net income by operating segment:
Banking		33,221			26,697			31,189			86,410			98,689
FirsTech		(61	)		28			317			53			505
Wealth Management		5,618			5,561			4,781			16,177			14,571

AVERAGE BALANCES
Cash and cash equivalents	$	502,127		$	346,381		$	252,730		$	480,979		$	237,370
Investment securities		2,666,269			2,737,313			3,148,759			2,769,862			3,254,054
Loans held for sale		11,539			9,353			2,267			8,585			1,955
Portfolio loans		7,869,798			8,010,636			7,834,285			7,826,741			7,767,378
Interest-earning assets		10,936,611			10,993,907			11,118,167			10,976,660			11,142,780
Total assets		12,007,702			12,089,692			12,202,783			12,040,414			12,225,232

Noninterest-bearing deposits		2,706,858			2,816,293			2,925,244			2,743,777			3,082,884
Interest-bearing deposits		7,296,921			7,251,582			7,217,463			7,292,884			6,886,277
Total deposits		10,003,779			10,067,875			10,142,707			10,036,661			9,969,161

Federal funds purchased and securities sold under agreements to repurchase		132,688			144,370			190,112			151,835			207,014
Interest-bearing liabilities		7,731,459			7,725,832			7,864,355			7,762,867			7,748,218
Total liabilities		10,643,325			10,757,877			10,994,376			10,716,295			11,029,374
Stockholders’ equity – common		1,364,377			1,331,815			1,208,407			1,324,119			1,195,858
Tangible common equity²		994,657			955,591			850,382			957,788			835,204

PERFORMANCE RATIOS
Pre-provision net revenue to average assets^{1, 2, 3}		1.38	%		1.37	%		1.24	%		1.43	%		1.37	%
Return on average assets³		1.06	%		0.91	%		1.00	%		0.95	%		1.06	%
Return on average common equity³		9.33	%		8.26	%		10.07	%		8.63	%		10.82	%
Return on average tangible common equity^{2, 3}		12.80	%		11.51	%		14.31	%		11.94	%		15.50	%
Net interest margin^2, 4		3.02	%		3.03	%		2.80	%		2.94	%		2.93	%
Efficiency ratio²		62.15	%		62.32	%		62.38	%		60.87	%		59.97	%
Adjusted noninterest income to operating revenue²		29.86	%		29.13	%		28.69	%		29.95	%		27.91	%

NON-GAAP FINANCIAL INFORMATION
Adjusted pre-provision net revenue^1, 2	$	44,104		$	42,617		$	40,491		$	125,359		$	132,067
Adjusted net income²		33,533			29,016			30,730			89,080			96,889
Adjusted diluted earnings per share²		0.58			0.50			0.55			1.55			1.72
Adjusted pre-provision net revenue to average assets^{2, 3}		1.46	%		1.42	%		1.32	%		1.39	%		1.44	%
Adjusted return on average assets^{2, 3}		1.11	%		0.97	%		1.00	%		0.99	%		1.06	%
Adjusted return on average tangible common equity^{2, 3}		13.41	%		12.21	%		14.34	%		12.42	%		15.51	%
Adjusted net interest margin^2, 4		2.97	%		3.00	%		2.79	%		2.92	%		2.91	%
Adjusted efficiency ratio²		60.50	%		60.57	%		62.31	%		60.91	%		59.95	%

___________________________________________

Net interest income plus noninterest income, excluding securities gains and losses, less noninterest expense.
See “Non-GAAP Financial Information” for reconciliation.
For quarterly periods, measures are annualized.
On a tax-equivalent basis, assuming a federal income tax rate of 21%.


CONDENSED CONSOLIDATED BALANCE SHEETS *(unaudited)*
(dollars in thousands, except per share amounts)

	As of
	September 30, 2024			June 30, 2024			September 30, 2023
ASSETS
Cash and cash equivalents	$	553,709		$	285,269		$	337,919
Debt securities available for sale		1,818,117			1,829,896			2,182,841
Debt securities held to maturity		838,883			851,261			882,614
Equity securities		10,315			9,618			8,782
Loans held for sale		11,523			11,286			3,051

Commercial loans		5,631,281			5,799,214			5,824,800
Retail real estate and retail other loans		2,177,816			2,199,698			2,031,360
Portfolio loans		7,809,097			7,998,912			7,856,160

Allowance for credit losses		(84,981	)		(85,226	)		(91,710	)
Premises and equipment		120,279			121,647			122,538
Right of use asset		11,100			11,137			11,500
Goodwill and other intangible assets, net		368,249			370,580			356,343
Other assets		530,548			567,036			588,212
Total assets	$	11,986,839		$	11,971,416		$	12,258,250

LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing deposits	$	2,683,543		$	2,832,776		$	2,918,574
Interest-bearing checking, savings, and money market deposits		5,739,773			5,619,470			5,747,136
Time deposits		1,519,925			1,523,889			1,666,652
Total deposits		9,943,241			9,976,135			10,332,362

Securities sold under agreements to repurchase		128,429			140,283			183,702
Short-term borrowings		—			—			12,000
Long-term debt		227,482			227,245			243,666
Junior subordinated debt owed to unconsolidated trusts		74,754			74,693			71,946
Lease liability		11,470			11,469			11,783
Other liabilities		198,579			207,781			212,633
Total liabilities		10,583,955			10,637,606			11,068,092

Stockholders’ equity
Retained earnings		279,868			261,820			224,698
Accumulated other comprehensive income (loss)		(170,913	)		(220,326	)		(290,730	)
Other¹		1,293,929			1,292,316			1,256,190
Total stockholders’ equity		1,402,884			1,333,810			1,190,158
Total liabilities & stockholders’ equity	$	11,986,839		$	11,971,416		$	12,258,250

SHARE AND PER SHARE AMOUNTS
Book value per common share	$	24.67		$	23.50		$	21.51
Tangible book value per common share²	$	18.19		$	16.97		$	15.07
Ending number of common shares outstanding		56,872,241			56,746,937			55,342,017

___________________________________________

Net balance of common stock ($0.001 par value), additional paid-in capital, and treasury stock.
See “Non-GAAP Financial Information” for reconciliation.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME *(unaudited)*
(dollars in thousands, except per share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
INTEREST INCOME
Interest and fees on loans	$	111,336		$	109,641		$	99,844		$	320,302		$	284,423
Interest and dividends on investment securities		18,072			19,173			21,234			57,182			62,360
Other interest income		5,092			3,027			1,591			14,590			3,890
Total interest income	$	134,500		$	131,841		$	122,669		$	392,074		$	350,673

INTEREST EXPENSE
Deposits	$	46,634		$	43,709		$	37,068		$	134,311		$	78,576
Federal funds purchased and securities sold under agreements to repurchase		981			1,040			1,327			3,393			3,772
Short-term borrowings		26			418			1,964			676			12,527
Long-term debt		3,181			3,181			3,528			9,767			10,631
Junior subordinated debt owed to unconsolidated trusts		1,137			1,059			991			3,185			2,849
Total interest expense	$	51,959		$	49,407		$	44,878		$	151,332		$	108,355

Net interest income	$	82,541		$	82,434		$	77,791		$	240,742		$	242,318
Provision for credit losses		2			2,277			364			7,317			1,944
Net interest income after provision for credit losses	$	82,539		$	80,157		$	77,427		$	233,425		$	240,374

NONINTEREST INCOME
Wealth management fees	$	15,378		$	15,917		$	14,235		$	46,844		$	43,594
Fees for customer services		8,168			7,798			7,502			23,022			21,560
Payment technology solutions		5,265			5,915			5,226			16,889			15,772
Mortgage revenue		355			478			311			1,579			871
Income on bank owned life insurance		1,189			1,442			1,001			4,050			3,682
Realized net gains (losses) on the sale of mortgage servicing rights		(18	)		277			—			7,724			—
Net securities gains (losses)		822			(353	)		(285	)		(5,906	)		(2,960	)
Other noninterest income		4,792			2,327			3,018			10,550			8,349
Total noninterest income	$	35,951		$	33,801		$	31,008		$	104,752		$	90,868

NONINTEREST EXPENSE
Salaries, wages, and employee benefits	$	44,593		$	43,478		$	39,677		$	130,161		$	119,867
Data processing expense		6,910			7,100			5,930			20,560			17,472
Net occupancy expense of premises		4,633			4,590			4,594			13,943			13,896
Furniture and equipment expense		1,647			1,695			1,638			5,155			5,065
Professional fees		3,118			2,495			1,542			7,866			4,573
Amortization of intangible assets		2,548			2,629			2,555			7,586			7,953
Interchange expense		1,352			1,733			1,786			4,696			5,509
FDIC insurance		1,413			1,460			1,475			4,273			4,483
Other noninterest expense		9,712			10,357			11,748			27,992			31,735
Total noninterest expense	$	75,926		$	75,537		$	70,945		$	222,232		$	210,553

Income before income taxes	$	42,564		$	38,421		$	37,490		$	115,945		$	120,689
Income taxes		10,560			11,064			6,824			30,359			23,873
Net income	$	32,004		$	27,357		$	30,666		$	85,586		$	96,816

SHARE AND PER SHARE AMOUNTS
Basic earnings per common share	$	0.56		$	0.48		$	0.55		$	1.52		$	1.75
Diluted earnings per common share	$	0.55		$	0.47		$	0.54		$	1.49		$	1.72
Average common shares outstanding		57,033,359			56,919,025			55,486,700			56,458,430			55,441,980
Diluted average common shares outstanding		57,967,848			57,853,231			56,315,492			57,411,299			56,230,624

BALANCE SHEET STRENGTH

Our balance sheet remains a source of strength. Total assets were $11.99 billion as of September 30, 2024, compared to $11.97 billion as of June 30, 2024, and $12.26 billion as of September 30, 2023.

We remain steadfast in our conservative approach to underwriting and disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters, and this approach has impacted loan growth as predicted. Portfolio loans totaled $7.81 billion at September 30, 2024, compared to $8.00 billion at June 30, 2024, and $7.86 billion at September 30, 2023.

Average portfolio loans were $7.87 billion for the third quarter of 2024, compared to $8.01 billion for the second quarter of 2024 and $7.83 billion for the third quarter of 2023. Average interest-earning assets were $10.94 billion for the third quarter of 2024, compared to $10.99 billion for the second quarter of 2024, and $11.12 billion for the third quarter of 2023.

Total deposits were $9.94 billion at September 30, 2024, compared to $9.98 billion at June 30, 2024, and $10.33 billion at September 30, 2023. Average deposits were $10.00 billion for the third quarter of 2024, compared to $10.07 billion for the second quarter of 2024 and $10.14 billion for the third quarter of 2023. Deposit fluctuations over the last several quarters were driven by a number of elements, including (1) seasonal factors, including ordinary course public fund flows and fluctuations in the normal course of business operations of certain core commercial customers, (2) the macroeconomic environment, including prevailing interest rates and inflationary pressures, (3) depositors moving some funds to accounts at competitors offering above-market rates, and (4) deposits moving within the Busey ecosystem between deposit accounts and our wealth management group. Core deposits¹ accounted for 96.5% of total deposits as of September 30, 2024. Cost of deposits was 1.85% in the third quarter of 2024, which represents an increase of 10 basis points from the second quarter of 2024. Excluding time deposits, Busey’s cost of deposits was 1.50% in the third quarter of 2024, an increase of 14 basis points from the second quarter of 2024. Non-maturity deposit cost of funds has increased as Busey Bank continues to offer savings account specials to customers with larger account balances, with the intention of migrating maturing CDs to these managed rate products. Pressure on non-interest bearing deposits along with some elevated balances of higher rate seasonal business and public funds accounts also contributed to increases in overall deposit funding cost during the quarter. Spot rates on total deposit costs, including noninterest bearing deposits, increased by 5 basis points from 1.75% at June 30, 2024, to 1.80% at September 30, 2024. Spot rates on interest bearing deposits increased by 1 basis point from 2.45% at June 30, 2024 to 2.46% at September 30, 2024.

There were no short term borrowings as of September 30 or June 30, 2024, compared to $12.0 million at September 30, 2023. We had no borrowings from the Federal Home Loan Bank (“FHLB”) at the end of the third quarter of 2024, the second quarter of 2024, or the third quarter of 2023. We have sufficient on- and off-balance sheet liquidity⁵ to manage deposit fluctuations and the liquidity needs of our customers. As of September 30, 2024, our available sources of on- and off-balance sheet liquidity totaled $6.37 billion. We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the third quarter of 2024 had a weighted average term of 8.1 months at a rate of 4.18%, 67 basis points below our average marginal wholesale equivalent-term funding cost during the quarter. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were approximately $81.1 million in the third quarter of 2024. For the remainder of 2024, cash flows from our securities portfolio are expected to be approximately $97.1 million with a current book yield of 2.18%.

ASSET QUALITY

Credit quality continues to be strong. Loans 30-89 days past due totaled $10.1 million as of September 30, 2024, compared to $23.5 million as of June 30, 2024, and $5.9 million as of September 30, 2023. The decrease in loans that were 30-89 days past due is primarily attributable to a single commercial real estate loan in the second quarter that is no longer past due as of September 30, 2024. Non-performing loans were $8.2 million as of September 30, 2024, compared to $9.1 million as of June 30, 2024, and $12.0 million as of September 30, 2023. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.11% as of both September 30, 2024, and June 30, 2024, and 0.15% as of September 30, 2023. Non-performing assets were 0.07% of total assets for the third quarter of 2024, compared to 0.08% for the second quarter of 2024 and 0.10% for the third quarter of 2023. Our total classified assets were $89.0 million at September 30, 2024, compared to $95.8 million at June 30, 2024, and $59.6 million at September 30, 2023. Our ratio of classified assets to estimated bank Tier 1 capital⁴ and reserves remains low by historical standards, at 5.9% as of September 30, 2024, compared to 6.4% as of June 30, 2024, and 4.1% as of September 30, 2023.

Net charge-offs were $0.2 million for the third quarter of 2024, compared to $9.9 million for the second quarter of 2024, and $0.3 million for the third quarter of 2023. Charge-offs in the second quarter of 2024 were primarily in connection with a single commercial and industrial credit relationship that also experienced a partial charge-off during the first quarter of 2024. The allowance as a percentage of portfolio loans was 1.09% as of September 30, 2024, compared to 1.07% as of June 30, 2024, and 1.17% as of September 30, 2023. The ratio was impacted in 2024 by the acquisition of M&M’s Life Equity Loan^® portfolio, as Busey did not record an allowance for credit loss for these loans due to no expected credit loss at default, as permitted under the practical expedient provided within the Accounting Standards Codification 326-20-35-6. The allowance coverage for non-performing loans was 10.34 times as of September 30, 2024, compared to 9.36 times as of June 30, 2024, and 7.64 times as of September 30, 2023.

Busey maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.


ASSET QUALITY *(unaudited)*
(dollars in thousands)

	As of
	September 30, 2024			June 30, 2024			September 30, 2023
Total assets	$	11,986,839		$	11,971,416		$	12,258,250
Portfolio loans		7,809,097			7,998,912			7,856,160
Loans 30 – 89 days past due		10,141			23,463			5,934
Non-performing loans:
Non-accrual loans		8,192			8,393			11,298
Loans 90+ days past due and still accruing		25			712			709
Non-performing loans	$	8,217		$	9,105		$	12,007
Non-performing loans, segregated by geography:
Illinois / Indiana	$	3,981		$	5,793		$	7,951
Missouri		3,530			3,089			3,747
Florida		706			222			309
Other non-performing assets		64			90			96
Non-performing assets	$	8,281		$	9,195		$	12,103

Allowance for credit losses	$	84,981		$	85,226		$	91,710

RATIOS
Non-performing loans to portfolio loans		0.11	%		0.11	%		0.15	%
Non-performing assets to total assets		0.07	%		0.08	%		0.10	%
Non-performing assets to portfolio loans and other non-performing assets		0.11	%		0.11	%		0.15	%
Allowance for credit losses to portfolio loans		1.09	%		1.07	%		1.17	%
Coverage ratio of the allowance for credit losses to non-performing loans	10.34 x			9.36 x			7.64 x

NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) *(unaudited)*
(dollars in thousands)

	Three Months Ended						Nine Months Ended
	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net charge-offs (recoveries)	$	247	$	9,856	$	293	$	15,319	$	1,842
Provision expense (release)		2		2,277		364		7,317		1,944

NET INTEREST MARGIN AND NET INTEREST INCOME

Net interest margin¹ was 3.02% for the third quarter of 2024, compared to 3.03% for the second quarter of 2024 and 2.80% for the third quarter of 2023. Excluding purchase accounting accretion, adjusted net interest margin¹ was 2.97% for the third quarter of 2024, compared to 3.00% in the second quarter of 2024 and 2.79% in the third quarter of 2023. Net interest income was $82.5 million in the third quarter of 2024, compared to $82.4 million in the second quarter of 2024 and $77.8 million in the third quarter of 2023.

After raising federal funds rates by a total of 525 basis points between March 2022 and July 2023, the Federal Open Market Committee (“FOMC”) lowered rates by 50 basis points in September 2024. In anticipation of the FOMC pivot to an easing cycle, we limited our exposure to term funding structures and intentionally priced savings specials to encourage maturing CD balances to migrate to managed rate non-maturity products. During September we began lowering rates on special priced deposit accounts and other managed rate products to benefit from the FOMC rate cuts. In addition, approximately 6% of our deposit portfolio is indexed and immediately repriced with the rate cuts by the FOMC. With our short duration CD balances comprising only 15% of the deposit funding base, we also have the ability to quickly reprice the book at lower market rates. We continue to offer CD specials with shorter term structures as well as offering attractive premium savings rates to encourage rotation of maturing CD deposits into nimble pricing products. Components of the 1 basis point decrease in net interest margin¹ during the third quarter of 2024 include:

Increased cash and securities portfolio yield contributed +3 basis points
Increased loan portfolio and held for sale loan yields contributed +2 basis points
Increased purchase accounting contributed +2 basis points
Reduced borrowing expense +2 basis points
Reduced time deposit funding costs contributed +1 basis point
Increased non-maturity deposit funding costs contributed -11 basis points

Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 2.1% over the subsequent twelve-month period. Busey continues to evaluate off-balance sheet hedging and balance sheet restructuring strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have provided funding flows, and we had excess earning cash during the third quarter of 2024. Since the onset of the current FOMC tightening cycle that began in the first quarter of 2022, our cumulative interest-bearing non-maturity deposit beta peaked at 41%. Our total deposit beta for the completed tightening cycle was 34%. Deposit betas were calculated based on an average federal funds rate of 5.43% during the third quarter of 2024. The average federal funds rate decreased by 7 basis points compared to the average rate of 5.50% in the second quarter of 2024.

NONINTEREST INCOME

Noninterest income was $36.0 million for the third quarter of 2024, as compared to $33.8 million for the second quarter of 2024 and $31.0 million for the third quarter of 2023. Excluding the impact of net securities gains and losses and immaterial follow-on adjustments from the previously announced mortgage servicing rights sale, adjusted noninterest income¹ was $35.1 million, or 29.9% of operating revenue¹, during the third quarter of 2024, $33.9 million, or 29.1% of operating revenue, for the second quarter of 2024, and $31.3 million, or 28.7% of operating revenue, for the third quarter of 2023.

Consolidated wealth management fees were $15.4 million for the third quarter of 2024, compared to $15.9 million for the second quarter of 2024 and $14.2 million for the third quarter of 2023. Wealth management fees for the third quarter of 2024 declined by 3.4% compared to the second quarter of 2024 primarily based on seasonal tax preparation fees. On a segment basis, Wealth Management generated $16.2 million in revenue during the third quarter of 2024, a 12.7% increase over revenue of $14.4 million for the third quarter of 2023. Approximately $0.8 million of revenue attributed to the wealth segment is reported on a consolidated basis as part of other noninterest income. Third quarter of 2024 results marked a new record high reported quarterly revenue for the Wealth Management operating segment. The Wealth Management operating segment generated net income of $5.6 million in both the third quarter of 2024 and the second quarter of 2024, compared to $4.8 million in the third quarter of 2023. Busey’s Wealth Management division ended the third quarter of 2024 with $13.69 billion in assets under care, compared to $13.02 billion at the end of the second quarter of 2024 and $11.55 billion at the end of the third quarter of 2023. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark⁶ over the last three and five years.

Payment technology solutions revenue was $5.3 million for the third quarter of 2024, compared to $5.9 million for the second quarter of 2024 and $5.2 million for the third quarter of 2023. Excluding intracompany eliminations, the FirsTech operating segment generated revenue of $5.6 million during the third quarter of 2024, compared to $6.2 million in the second quarter of 2024 and $5.7 million in the third quarter of 2023.

Noninterest income generated from our Wealth Management and FirsTech operating segments comprised 60.4% of our total noninterest income for the quarter ended September 30, 2024, providing a balance to spread-based revenue from traditional banking activities.

Fees for customer services were $8.2 million for the third quarter of 2024, compared to $7.8 million in the second quarter of 2024 and $7.5 million in the third quarter of 2023.

Net securities gains were $0.8 million for the third quarter of 2024, comprised primarily of unrealized gains on equity securities.

Other noninterest income was $4.8 million in the third quarter of 2024, compared to $2.3 million in the second quarter of 2024 and $3.0 million in the third quarter of 2023. Revenue associated with certain wealth management activities reported as other noninterest income on a consolidated basis was $0.8 million for the third quarter of 2024, compared to $0.2 million for the second quarter of 2024 and $0.1 million for the third quarter of 2023. Fluctuations in other noninterest income are primarily attributable to increases in venture capital investments, referral fees, and swap origination fees, partially offset by decreases in commercial loan sales gains. Increases for the year also reflect the addition of Life Equity Loan^® servicing income beginning in the second quarter of 2024.

OPERATING EFFICIENCY

Noninterest expense was $75.9 million in the third quarter of 2024, compared to $75.5 million in the second quarter of 2024 and $70.9 million for the third quarter of 2023. The efficiency ratio¹ was 62.1% for the third quarter of 2024, compared to 62.3% for the second quarter of 2024, and 62.4% for the third quarter of 2023. Adjusted core expense¹ was $71.0 million in the third quarter of 2024, compared to $71.1 million in the second quarter of 2024 and $66.0 million in the third quarter of 2023. The adjusted core efficiency ratio¹ was 60.2% for the third quarter of 2024, compared to 60.9% for the second quarter of 2024, and 60.2% for the third quarter of 2023. We expect to continue to prudently manage our expenses and to realize increased rates of M&M acquisition synergies during the final quarter of 2024.

Noteworthy components of noninterest expense are as follows:

Salaries, wages, and employee benefits expenses were $44.6 million in the third quarter of 2024, compared to $43.5 million in the second quarter of 2024 and $39.7 million in the third quarter of 2023. Busey recorded $0.1 million of non-operating salaries, wages, and employee benefit expenses in the third quarter of 2024, compared to $1.1 million in the second quarter of 2024 and none in the third quarter of 2023. The increase in the third quarter of 2024 over the second quarter of 2024 was primarily attributable to performance metrics tied to bonus and equity compensation. Our associate-base consisted of 1,510 full-time equivalents as of September 30, 2024, compared to 1,520 as of June 30, 2024, and 1,484 as of September 30, 2023. The increase in our associate-base in the second quarter of 2024 was largely due to the M&M acquisition.
Data processing expense was $6.9 million in the third quarter of 2024, compared to $7.1 million in the second quarter of 2024 and $5.9 million in the third quarter of 2023. Busey recorded $0.1 million of non-operating data processing expenses in the third quarter of 2024, compared to $0.3 million in the second quarter of 2024 and none in the third quarter of 2023. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
Professional fees were $3.1 million in the third quarter of 2024, compared to $2.5 million in the second quarter of 2024 and $1.5 million in the third quarter of 2023. Busey recorded $1.4 million of non-operating professional fees in the third quarter of 2024, as compared to $0.4 million in the second quarter of 2024 and $0.1 million in the third quarter of 2023.
Other noninterest expense was $9.7 million for the third quarter of 2024, compared to $10.4 million in the second quarter of 2024 and $11.7 million in the third quarter of 2023. Busey recorded $0.4 million of non-operating costs in other noninterest expense in the third quarter of 2024, compared to $0.3 million in the second quarter of 2024 and none in the third quarter of 2023. In connection with Busey’s adoption of ASU 2023-02 on January 1, 2024, Busey began recording amortization of New Markets Tax Credits as income tax expense instead of other operating expense, which resulted in a decrease to other operating expenses of $2.3 million compared to the third quarter of 2023. Other items contributing to the fluctuations in other noninterest expense included the provision for unfunded commitments, mortgage servicing rights valuation expenses, fixed asset impairment, marketing, business development, and expenses related to recruiting and onboarding.

Busey’s effective tax rate for the third quarter of 2024 was 24.8%, which was lower than the combined federal and state statutory rate of approximately 28.0% due to the impact of tax exempt interest income, such as municipal bond interest, bank owned life insurance income, and investments in various federal and state tax credits.

Effective tax rates were higher in 2024, compared to 2023, due to the adoption of ASU 2023-02 in January 2024. Upon adoption of ASU 2023-02 Busey elected to use the proportional amortization method of accounting for equity investments made primarily for the purpose of receiving income tax credits. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense as opposed to being presented on a gross basis on the income statement as a component of noninterest expense and income tax expense.

CAPITAL STRENGTH

Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. On October 25, 2024, Busey will pay a cash dividend of $0.24 per common share to stockholders of record as of October 18, 2024. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

As of September 30, 2024, Busey continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. Busey’s Common Equity Tier 1 ratio is estimated⁴ to be 13.78% at September 30, 2024, compared to 13.20% at June 30, 2024, and 12.52% at September 30, 2023. Our Total Capital to Risk Weighted Assets ratio is estimated⁴ to be 18.19% at September 30, 2024, compared to 17.50% at June 30, 2024, and 16.72% at September 30, 2023.

Busey’s tangible common equity¹ was $1.04 billion at September 30, 2024, compared to $970.9 million at June 30, 2024, and $841.2 million at September 30, 2023. Tangible common equity¹ represented 8.96% of tangible assets at September 30, 2024, compared to 8.36% at June 30, 2024, and 7.06% at September 30, 2023. Busey’s tangible book value per common share¹ increased to $18.19 at September 30, 2024, from $16.97 at June 30, 2024, and $15.07 at September 30, 2023, reflecting a 20.7% year-over-year increase. The ratios of tangible common equity to tangible assets¹ and tangible book value per common share have been impacted by the fair value adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of shareholder’s equity.

THIRD QUARTER EARNINGS INVESTOR PRESENTATION

For additional information on Busey’s financial condition and operating results, please refer to the Q3 2024 Earnings Investor Presentation furnished via Form 8-K on October 22, 2024, in connection with this earnings release.

CORPORATE PROFILE

As of September 30, 2024, First Busey Corporation (Nasdaq: BUSE) was an $11.99 billion financial holding company headquartered in Champaign, Illinois.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $11.95 billion as of September 30, 2024, and is headquartered in Champaign, Illinois. Busey Bank currently has 62 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, three in Southwest Florida, and one in Indianapolis. More information about Busey Bank can be found at busey.com.

Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $13.69 billion as of September 30, 2024. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

For the first time, Busey was named among the World’s Best Banks for 2024 by Forbes, earning a spot on the list among 68 U.S. banks and 403 banks worldwide. Additionally, Busey Bank was honored to be named among America’s Best Banks by Forbes magazine for the third consecutive year. Ranked 40th overall in 2024, Busey was the second-ranked bank headquartered in Illinois of the six that made this year’s list and the highest-ranked bank of those with more than $10 billion in assets. Busey is humbled to be named among the 2023 Best Banks to Work For by American Banker, the 2023 Best Places to Work in Money Management by Pensions and Investments, the 2024 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2024 Best Places to Work in Indiana by the Indiana Chamber of Commerce, and the 2024 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized globally, nationally and locally for our engaged culture of integrity and commitment to community development.

For more information about us, visit busey.com.

Category: Financial
Source: First Busey Corporation

Contacts:

Jeffrey D. Jones, Chief Financial Officer
217-365-4130

NON-GAAP FINANCIAL INFORMATION

This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring noninterest items and provide additional perspective on Busey’s performance over time.

Below is a reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, average tangible common equity, return on average tangible common equity, adjusted return on average tangible common equity; net income and net security gains and losses in the case of further adjusted net income and further adjusted diluted earnings per share; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest income, adjusted noninterest expense, noninterest expense excluding non-operating adjustments, adjusted core expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; net interest income, total noninterest income, net securities gains and losses, and net gains and losses on the sale of mortgage servicing rights in the case of operating revenue and adjusted noninterest income to operating revenue; total assets and goodwill and other intangible assets in the case of tangible assets; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; and total deposits in the case of core deposits and core deposits to total deposits.

These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue, Pre-Provision Net Revenue to Average Assets, and Adjusted Pre-Provision Net Revenue to Average Assets
(dollars in thousands)

		Three Months Ended									Nine Months Ended
		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
PRE-PROVISION NET REVENUE
Net interest income		$	82,541		$	82,434		$	77,791		$	240,742		$	242,318
Total noninterest income			35,951			33,801			31,008			104,752			90,868
Net security (gains) losses			(822	)		353			285			5,906			2,960
Total noninterest expense			(75,926	)		(75,537	)		(70,945	)		(222,232	)		(210,553	)
Pre-provision net revenue			41,744			41,051			38,139			129,168			125,593
Non-GAAP adjustments:
Acquisition and restructuring expenses			1,935			2,212			79			4,555			91
Provision for unfunded commitments			407			(369	)		13			(640	)		(357	)
Amortization of New Markets Tax Credits			—			—			2,260			—			6,740
Realized (gain) loss on the sale of mortgage service rights			18			(277	)		—			(7,724	)		—
Adjusted pre-provision net revenue		$	44,104		$	42,617		$	40,491		$	125,359		$	132,067

Pre-provision net revenue, annualized	[a]	$	166,069		$	165,106		$	151,312		$	172,538		$	167,917
Adjusted pre-provision net revenue, annualized	[b]		175,457			171,405			160,644			167,450			176,573
Average total assets	[c]		12,007,702			12,089,692			12,202,783			12,040,414			12,225,232

Reported: Pre-provision net revenue to average total assets¹	[a÷c]		1.38	%		1.37	%		1.24	%		1.43	%		1.37	%
Adjusted: Pre-provision net revenue to average total assets¹	[b÷c]		1.46	%		1.42	%		1.32	%		1.39	%		1.44	%

___________________________________________

Annualized measure.


Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Average Tangible Common Equity, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity
(dollars in thousands, except per share amounts)

		Three Months Ended									Nine Months Ended
		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
NET INCOME ADJUSTED FOR NON-OPERATING ITEMS
Net income	[a]	$	32,004		$	27,357		$	30,666		$	85,586		$	96,816
Non-GAAP adjustments for non-operating expenses:
Acquisition expenses:
Salaries, wages, and employee benefits			73			1,137			—			1,210			—
Data processing			90			344			—			534			—
Professional fees, occupancy, furniture and fixtures, and other			1,772			731			79			2,688			91
Restructuring expenses:
Salaries, wages, and employee benefits			—			—			—			123			—
Acquisition and restructuring expenses			1,935			2,212			79			4,555			91
Related tax benefit¹			(406	)		(553	)		(15	)		(1,061	)		(18	)
Adjusted net income	[b]	$	33,533		$	29,016		$	30,730		$	89,080		$	96,889

DILUTED EARNINGS PER SHARE
Diluted average common shares outstanding	[c]		57,967,848			57,853,231			56,315,492			57,411,299			56,230,624

Reported: Diluted earnings per share	[a÷c]	$	0.55		$	0.47		$	0.54		$	1.49		$	1.72
Adjusted: Diluted earnings per share	[b÷c]	$	0.58		$	0.50		$	0.55		$	1.55		$	1.72

RETURN ON AVERAGE ASSETS
Net income, annualized	[d]	$	127,320		$	110,029		$	121,664		$	114,323		$	129,443
Adjusted net income, annualized	[e]		133,403			116,702			121,918			118,990			129,540
Average total assets	[f]		12,007,702			12,089,692			12,202,783			12,040,414			12,225,232

Reported: Return on average assets²	[d÷f]		1.06	%		0.91	%		1.00	%		0.95	%		1.06	%
Adjusted: Return on average assets²	[e÷f]		1.11	%		0.97	%		1.00	%		0.99	%		1.06	%

RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Average common equity		$	1,364,377		$	1,331,815		$	1,208,407		$	1,324,119		$	1,195,858
Average goodwill and other intangible assets, net			(369,720	)		(376,224	)		(358,025	)		(366,331	)		(360,654	)
Average tangible common equity	[g]	$	994,657		$	955,591		$	850,382		$	957,788		$	835,204

Reported: Return on average tangible common equity²	[d÷g]		12.80	%		11.51	%		14.31	%		11.94	%		15.50	%
Adjusted: Return on average tangible common equity²	[e÷g]		13.41	%		12.21	%		14.34	%		12.42	%		15.51	%

___________________________________________

Year-to-date tax benefits were calculated by multiplying year-to-date acquisition and restructuring expenses by the effective income tax rate for each year-to-date period, which for 2024 excludes a one-time deferred tax valuation adjustment resulting from a change in Illinois apportionment rate due to recently enacted regulations and deductibility of certain acquisition expenses. Tax rates used in these calculations were 23.3% and 19.8% for the nine months ended September 30, 2024 and 2023, respectively. Quarterly tax benefits were calculated as the year-to-date tax benefit amounts less the sum of amounts applied to previous quarters during the year, equating to tax rates of 21.0%, 25.0%, and 19.7% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively.
Annualized measure.


Further Adjusted Net Income and Further Adjusted Diluted Earnings Per Share
(dollars in thousands, except per share amounts)

		Three Months Ended									Nine Months Ended
		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Adjusted net income¹	[a]	$	33,533		$	29,016		$	30,730		$	89,080		$	96,889
Further non-GAAP adjustments:
Net securities (gains) losses			(822	)		353			285			5,906			2,960
Realized net (gains) losses on the sale of mortgage servicing rights			18			(277	)		—			(7,724	)		—
Tax effect for further non-GAAP adjustments²			199			(19	)		(52	)		453			(585	)
Tax effected further non-GAAP adjustments³			(605	)		57			233			(1,365	)		2,375
Further adjusted net income³	[b]	$	32,928		$	29,073		$	30,963		$	87,715		$	99,264
One-time deferred tax valuation adjustment⁴			—			1,446			—			1,446			—
Further adjusted net income, excluding one-time deferred tax valuation adjustment³	[c]	$	32,928		$	30,519		$	30,963		$	89,161		$	99,264

Diluted average common shares outstanding	[d]		57,967,848			57,853,231			56,315,492			57,411,299			56,230,624

Adjusted: Diluted earnings per share	[a÷d]	$	0.58		$	0.50		$	0.55		$	1.55		$	1.72
Further Adjusted: Diluted earnings per share³	[b÷d]	$	0.57		$	0.50		$	0.55		$	1.53		$	1.77
Further Adjusted, excluding one-time deferred tax valuation adjustment: Diluted earnings per share³	[c÷d]	$	0.57		$	0.53		$	0.55		$	1.55		$	1.77

___________________________________________

Adjusted net income is a non-GAAP measure. See the table on the previous page for a reconciliation to the nearest GAAP measure.
Tax effects for further non-GAAP adjustments were calculated by multiplying further non-GAAP adjustments by the effective income tax rate for each period. For the nine months ended September 30, 2024, the rate that we used excluded a one-time deferred tax valuation adjustment resulting from a change in Illinois apportionment rate due to recently enacted regulations. Effective income tax rates that we used to calculate the tax effect were 24.8%, 25.0%, and 18.2% for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively, and were 24.9% and 19.8% for the nine months ended September 30, 2024 and 2023, respectively.
Tax-effected measure.
An estimated one-time deferred tax valuation adjustment of $1.4 million resulted from a change to our Illinois apportionment rate due to recently enacted regulations.


Adjusted Net Interest Income and Adjusted Net Interest Margin
(dollars in thousands)

		Three Months Ended									Nine Months Ended
		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net interest income		$	82,541		$	82,434		$	77,791		$	240,742		$	242,318
Non-GAAP adjustments:
Tax-equivalent adjustment¹			396			402			553			1,247			1,672
Tax-equivalent net interest income			82,937			82,836			78,344			241,989			243,990
Purchase accounting accretion related to business combinations			(1,338	)		(812	)		(277	)		(2,354	)		(1,093	)
Adjusted net interest income		$	81,599		$	82,024		$	78,067		$	239,635		$	242,897

Tax-equivalent net interest income, annualized	[a]	$	329,945		$	333,165		$	310,821		$	323,241		$	326,214
Adjusted net interest income, annualized	[b]		324,622			329,899			309,722			320,096			324,752
Average interest-earning assets	[c]		10,936,611			10,993,907			11,118,167			10,976,660			11,142,780

Reported: Net interest margin²	[a÷c]		3.02	%		3.03	%		2.80	%		2.94	%		2.93	%
Adjusted: Net interest margin²	[b÷c]		2.97	%		3.00	%		2.79	%		2.92	%		2.91	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Annualized measure.


Adjusted Noninterest Income, Operating Revenue, Adjusted Noninterest Income to Operating Revenue, Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense, Adjusted Core Expense, Noninterest Expense Excluding Non-Operating Adjustments, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio
(dollars in thousands)

		Three Months Ended									Nine Months Ended
		September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net interest income	[a]	$	82,541		$	82,434		$	77,791		$	240,742		$	242,318
Non-GAAP adjustments:
Tax-equivalent adjustment¹			396			402			553			1,247			1,672
Tax-equivalent net interest income	[b]		82,937			82,836			78,344			241,989			243,990

Total noninterest income			35,951			33,801			31,008			104,752			90,868
Non-GAAP adjustments:
Net security (gains) losses			(822	)		353			285			5,906			2,960
Noninterest income excluding net securities gains and losses	[c]		35,129			34,154			31,293			110,658			93,828
Further adjustments:
Realized net (gains) losses on the sale of mortgage servicing rights			18			(277	)		—			(7,724	)		—
Adjusted noninterest income	[d]	$	35,147		$	33,877		$	31,293		$	102,934		$	93,828

Tax-equivalent revenue	[e = b+c]	$	118,066		$	116,990		$	109,637		$	352,647		$	337,818
Adjusted tax-equivalent revenue	[f = b+d]		118,084			116,713			109,637			344,923			337,818
Operating revenue	[g = a+d]		117,688			116,311			109,084			343,676			336,146

Adjusted noninterest income to operating revenue	[d÷g]		29.86	%		29.13	%		28.69	%		29.95	%		27.91	%

Total noninterest expense		$	75,926		$	75,537		$	70,945		$	222,232		$	210,553
Non-GAAP adjustments:
Amortization of intangible assets	[h]		(2,548	)		(2,629	)		(2,555	)		(7,586	)		(7,953	)
Noninterest expense excluding amortization of intangible assets	[i]		73,378			72,908			68,390			214,646			202,600
Non-operating adjustments:
Salaries, wages, and employee benefits			(73	)		(1,137	)		—			(1,333	)		—
Data processing			(90	)		(344	)		—			(534	)		—
Professional fees, occupancy, furniture and fixtures, and other			(1,772	)		(731	)		(79	)		(2,688	)		(91	)
Adjusted noninterest expense	[j]		71,443			70,696			68,311			210,091			202,509
Provision for unfunded commitments			(407	)		369			(13	)		640			357
Amortization of New Markets Tax Credits			—			—			(2,260	)		—			(6,740	)
Adjusted core expense	[k]	$	71,036		$	71,065		$	66,038		$	210,731		$	196,126

Noninterest expense, excluding non-operating adjustments	[j-h]	$	73,991		$	73,325		$	70,866		$	217,677		$	210,462

Reported: Efficiency ratio	[i÷e]		62.15	%		62.32	%		62.38	%		60.87	%		59.97	%
Adjusted: Efficiency ratio	[j÷f]		60.50	%		60.57	%		62.31	%		60.91	%		59.95	%
Adjusted: Core efficiency ratio	[k÷f]		60.16	%		60.89	%		60.23	%		61.10	%		58.06	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.


Tangible Book Value and Tangible Book Value Per Common Share
(dollars in thousands, except per share amounts)

		As of
		September 30, 2024			June 30, 2024			September 30, 2023
Total stockholders’ equity		$	1,402,884		$	1,333,810		$	1,190,158
Non-GAAP adjustments:
Goodwill and other intangible assets, net			(368,249	)		(370,580	)		(356,343	)
Tangible book value	[a]	$	1,034,635		$	963,230		$	833,815

Ending number of common shares outstanding	[b]		56,872,241			56,746,937			55,342,017

Tangible book value per common share	[a÷b]	$	18.19		$	16.97		$	15.07


Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets
(dollars in thousands)

		As of
		September 30, 2024			June 30, 2024			September 30, 2023
Total assets		$	11,986,839		$	11,971,416		$	12,258,250
Non-GAAP adjustments:
Goodwill and other intangible assets, net			(368,249	)		(370,580	)		(356,343	)
Tax effect of other intangible assets¹			7,178			7,687			7,354
Tangible assets²	[a]	$	11,625,768		$	11,608,523		$	11,909,261

Total stockholders’ equity		$	1,402,884		$	1,333,810		$	1,190,158
Non-GAAP adjustments:
Goodwill and other intangible assets, net			(368,249	)		(370,580	)		(356,343	)
Tax effect of other intangible assets¹			7,178			7,687			7,354
Tangible common equity²	[b]	$	1,041,813		$	970,917		$	841,169

Tangible common equity to tangible assets²	[b÷a]		8.96	%		8.36	%		7.06	%

___________________________________________

Net of estimated deferred tax liability, calculated using the estimated statutory tax rate of 28%.
Tax-effected measure.


Core Deposits, Core Deposits to Total Deposits, and Portfolio Loans to Core Deposits
(dollars in thousands)

		As of
		September 30, 2024			June 30, 2024			September 30, 2023
Portfolio loans	[a]	$	7,809,097		$	7,998,912		$	7,856,160

Total deposits	[b]	$	9,943,241		$	9,976,135		$	10,332,362
Non-GAAP adjustments:
Brokered deposits, excluding brokered time deposits of $250,000 or more			(13,089	)		(43,089	)		(6,055	)
Time deposits of $250,000 or more			(338,808	)		(314,461	)		(350,276	)
Core deposits	[c]	$	9,591,344		$	9,618,585		$	9,976,031

RATIOS
Core deposits to total deposits	[c÷b]		96.46	%		96.42	%		96.55	%
Portfolio loans to core deposits	[a÷c]		81.42	%		83.16	%		78.75	%

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) risks related to the proposed transaction with CrossFirst, including (i) the possibility that the proposed transaction will not close when expected or at all because required regulatory, stockholder, or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, or are obtained subject to conditions that are not anticipated (and the risk that required regulatory approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); (ii) the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Busey and CrossFirst do business; (iii) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (iv) diversion of management’s attention from ongoing business operations and opportunities; (v) the possibility that Busey may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all, and to successfully integrate CrossFirst’s operations with those of Busey or that such integration may be more difficult, time consuming or costly than expected; (vi) revenues following the proposed transaction may be lower than expected; and (vii) shareholder litigation that could prevent or delay the closing of the proposed transaction or otherwise negatively impact our business and operations; (2) the strength of the local, state, national, and international economy (including effects of inflationary pressures and supply chain constraints); (3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (4) changes in state and federal laws, regulations, and governmental policies concerning Busey’s general business (including changes in response to the failures of other banks or as a result of the upcoming 2024 presidential election); (5) changes in accounting policies and practices; (6) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (7) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (8) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (9) the loss of key executives or associates; (10) changes in consumer spending; (11) unexpected results of other transactions (including the acquisition of M&M); (12) unexpected outcomes of existing or new litigation, investigations, or inquiries involving Busey (including with respect to Busey’s Illinois franchise taxes); (13) fluctuations in the value of securities held in Busey’s securities portfolio; (14) concentrations within Busey’s loan portfolio (including commercial real estate loans), large loans to certain borrowers, and large deposits from certain clients; (15) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (16) the level of non-performing assets on Busey’s balance sheets; (17) interruptions involving information technology and communications systems or third-party servicers; (18) breaches or failures of information security controls or cybersecurity-related incidents; and (19) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

ADDITIONAL INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT

Busey has filed a registration statement on Form S‑4 with the SEC to register the shares of Busey’s common stock that will be issued to CrossFirst stockholders in connection with the proposed transaction. The registration statement includes a preliminary joint proxy statement of Busey and CrossFirst, which also constitutes a prospectus of Busey. The definitive joint proxy statement/prospectus will be sent to the stockholders of each of Busey and CrossFirst seeking certain approvals related to the proposed transaction. INVESTORS AND SECURITY HOLDERS OF BUSEY AND CROSSFIRST AND THEIR RESPECTIVE AFFILIATES ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S‑4 AND THE JOINT PROXY STATEMENT/PROSPECTUS TO BE INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S‑4 WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BUSEY, CROSSFIRST, AND THE PROPOSED TRANSACTION. Investors and security holders may obtain a free copies of these documents, as well as other relevant documents filed with the SEC containing information about Busey and CrossFirst, without charge, at the SEC’s website (http://www.sec.gov). Copies of documents filed with the SEC by Busey will be made available free of charge in the “SEC Filings” section of Busey’s website, https://ir.busey.com. Copies of documents filed with the SEC by CrossFirst will be made available free of charge in the “Investor Relations” section of CrossFirst’s website, https://investors.crossfirstbankshares.com.

PARTICIPANTS IN SOLICITATION

Busey, CrossFirst, and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction under the rules of the SEC. Information regarding Busey’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on April 12, 2024, and certain other documents filed by Busey with the SEC. Information regarding CrossFirst’s directors and executive officers is available in its definitive proxy statement, which was filed with the SEC on March 26, 2024, and certain other documents filed by CrossFirst with the SEC. Other information regarding the participants in the solicitation of proxies in respect of the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC when they become available. Free copies of these documents, when available, may be obtained as described in the preceding paragraph.

END NOTES

1	Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see “Non-GAAP Financial Information.”
2	Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250 thousand FDIC insurance limit, less intercompany accounts and collateralized accounts (including preferred deposits).
3	Central Business District areas within Busey’s footprint include downtown St. Louis, downtown Indianapolis, and downtown Chicago.
4	Capital amounts and ratios for the third quarter of 2024 are not yet finalized and are subject to change.
5	On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
6	The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.

The MIL Network –

January 24, 2025

MIL-OSI: Baker Hughes Company Announces Third-Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

Third-quarter highlights

Orders of $6.7 billion, including $2.9 billion of IET orders.
RPO of $33.4 billion, including record IET RPO of $30.2 billion.
Revenue of $6.9 billion, up 4% year-over-year.
Attributable net income of $766 million.
GAAP diluted EPS of $0.77 and adjusted diluted EPS* of $0.67.
Adjusted EBITDA* of $1,208 million, up 23% year-over-year.
Cash flows from operating activities of $1,010 million and free cash flow* of $754 million.
Returns to shareholders of $361 million, including $152 million of share repurchases.

HOUSTON and LONDON, Oct. 22, 2024 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the third quarter of 2024.

“We delivered another quarter of record EBITDA, highlighted by exceptional operational performance across both segments. Our margins continue to improve at an accelerated pace, with total company EBITDA margins increasing to 17.5%. This marks the highest margin quarter since the company was formed. On the back of our solid third-quarter results and stable outlook, we remain confident in achieving our full-year EBITDA guidance midpoint,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

“Orders remain at solid levels, with IET orders of $2.9 billion marking the eighth consecutive quarter at or above these levels. IET continued to demonstrate strong order momentum for gas infrastructure and FPSOs, booking the largest ever ICL compressor award from Dubai Petroleum Establishment for the Margham Gas storage facility and two FPSO awards with separate offshore operators.”

“Overall, our segments continue to make strong progress on their journey toward 20% EBITDA margins, with both segments achieving high-teen margins during the quarter. Our operational discipline and rigor continue to gain traction.”

“We are also benefiting from the life-cycle attributes of our service offerings and the breadth of our portfolio. With significant recurring IET service revenue, strong production-levered businesses, untapped market opportunities, and improved cost structure, we are becoming less cyclical and capable of generating more durable earnings and free cash flow across cycles.”

“We are successfully executing our strategy, and this is a testament to the strength of our people and the culture we are building,” concluded Simonelli.

* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

	Three Months Ended						Variance
(in millions except per share amounts)	September 30, 2024		June 30, 2024		September 30, 2023		Sequential	Year-over-year
Orders	$	6,676	$	7,526	$	8,512	(11%)	(22%)
Revenue		6,908		7,139		6,641	(3%)	4%
Net income attributable to Baker Hughes		766		579		518	32%	48%
Adjusted net income attributable to Baker Hughes*		666		568		427	17%	56%
Operating income		930		833		714	12%	30%
Adjusted operating income*		930		847		716	10%	30%
Adjusted EBITDA*		1,208		1,130		983	7%	23%
Diluted earnings per share (EPS)		0.77		0.58		0.51	33%	51%
Adjusted diluted EPS*		0.67		0.57		0.42	18%	59%
Cash flow from operating activities		1,010		348		811	F	25%
Free cash flow*		754		106		592	F	27%

* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

“F” is used when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

Quarter Highlights

Industrial & Energy Technology (“IET”) experienced a strong quarter for its Integrated Compressor Line (“ICL”) technology. In its largest ICL award to-date, and booked under Climate Technology Solutions (“CTS”), Baker Hughes will supply 10 units to Dubai Petroleum Establishment for the Margham Gas storage facility. These ICL units will support gas infrastructure, providing stability to Dubai’s energy supply by strengthening the system’s ability to switch between natural gas and solar power.

IET’s Gas Technology Equipment (“GTE”) was also awarded a significant contract to supply advanced compression solutions to Saipem for TotalEnergies’ all-electric Kaminho Floating Production Storage and Offloading (“FPSO”) project in Angola. Baker Hughes’ centrifugal BCL compressor and ICL technology were selected because of the capability to minimize greenhouse emissions and eliminate routine flaring by reinjecting associated gas into the reservoir for storage. Separately, IET was selected to provide electric motor-driven process compressors for an FPSO project in Latin America.

IET’s Gas Technology Services (“GTS”) secured a multi-decade agreement for an LNG facility in the Middle East. The scope encompasses extensive maintenance services and digital solutions, leveraging Baker Hughes’ iCenter™ Remote Monitoring and Diagnostics capabilities.

Oilfield Services & Equipment (“OFSE”) strengthened the Company’s relationship with Petrobras, receiving contracts to supply 43 miles of flexible pipe systems in Brazil’s Santos Basin. A significant portion of these risers and flowlines will be manufactured in-country at Baker Hughes’ Niteroi plant. The contracts, awarded through an open tender, include multi-year service agreements to support maintenance activities through the life of the project and demonstrate Baker Hughes’ dedication to providing equipment and services critical to help Petrobras achieve its strategic plan to expand operations.

In OFSE, mature assets solutions (“MAS”) delivered a strong order quarter, illustrating confidence in the Company’s full range of workflows and solutions to accelerate production and total recovery. OFSE won a MAS award to supply Santos Energy’s strategic and historic Cooper Basin Development in Australia with drilling fluids and wireline services, marking Baker Hughes’ return to the basin. Additionally, OFSE signed a multi-year contract extension with a customer in the Middle East for completions and well intervention.

Baker Hughes saw increased adoption of Leucipa™, the Company’s intelligent automated field production digital solution. A major global operator expanded the use of Leucipa across multiple fields in the Permian Basin, enabling the customer to optimize production through real-time field orchestration to generate lower-carbon, short-cycle barrels. Additionally, a new strategic collaboration was established early in the fourth quarter with Repsol, a major customer of Leucipa, to develop and deploy next-generation artificial intelligence capabilities for this digital solution. The companies will share knowledge and expertise to optimize and enhance production across Repsol’s global portfolio while creating new commercial opportunities for Baker Hughes.

Baker Hughes continues to innovate new digital technologies to support customers on their decarbonization journey. The Company launched CarbonEdge™, powered by Cordant™, an end-to-end, risk-based digital solution that delivers precise, real-time data and alerts on carbon dioxide (CO₂) flows across CCUS infrastructure from subsurface to surface. This solution enables operators to mitigate risk, improve decision-making, enhance operational efficiency, and simplify regulatory reporting across the entire project lifecycle.

Consolidated Revenue and Operating Income by Reporting Segment

(in millions)	Three Months Ended									Variance
	September 30, 2024			June 30, 2024			September 30, 2023			Sequential	Year-over-year
Oilfield Services & Equipment	$	3,963		$	4,011		$	3,951		(1%)	—%
Industrial & Energy Technology		2,945			3,128			2,691		(6%)	9%
Segment revenue		6,908			7,139			6,641		(3%)	4%

Oilfield Services & Equipment		547			493			465		11%	18%
Industrial & Energy Technology		474			442			346		7%	37%
Corporate⁽¹⁾		(91	)		(88	)		(95	)	(3%)	4%
Restructuring, impairment & other		—			(14	)		(2	)	F	F
Operating income		930			833			714		12%	30%
Adjusted operating income*		930			847			716		10%	30%
Depreciation & amortization		278			283			267		(2%)	4%
Adjusted EBITDA*	$	1,208		$	1,130		$	983		7%	23%

* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

“F” is used when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

⁽¹⁾Corporate costs are primarily reported in “Selling, general and administrative” in the condensed consolidated statements of income (loss).

Revenue for the quarter was $6,908 million, a decrease of 3% sequentially and an increase of 4% year-over-year. The increase in revenue year-over-year was driven by IET.

The Company’s total book-to-bill ratio in the quarter was 1.0; the IET book-to-bill ratio in the quarter was also 1.0.

Operating income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”), for the third quarter of 2024 was $930 million. Operating income increased $97 million sequentially and increased $216 million year-over-year.

Adjusted operating income (a non-GAAP financial measure) for the third quarter of 2024 was $930 million. There were no adjustments to operating income in the third quarter. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted operating income for the third quarter of 2024 was up 10% sequentially and up 30% year-over-year.

Depreciation and amortization for the third quarter of 2024 was $278 million.

Adjusted EBITDA (a non-GAAP financial measure) for the third quarter of 2024 was $1,208 million. There were no adjustments to EBITDA in the third quarter. See Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the third quarter was up 7% sequentially and up 23% year-over-year.

The sequential increase in adjusted operating income and adjusted EBITDA was driven by higher pricing in both segments and structural cost-out initiatives, partially offset by lower volume in both segments. The year-over-year increase in adjusted operating income and adjusted EBITDA was driven by higher pricing in both segments, higher volume in IET, and structural cost-out initiatives, partially offset by cost inflation in IET and unfavorable business mix in both segments.

Other Financial Items

Remaining Performance Obligations (“RPO”) in the third quarter ended at $33.4 billion, a decrease of $0.1 billion from the second quarter of 2024. OFSE RPO was $3.2 billion, down 5% sequentially, while IET RPO was $30.2 billion, up $44 million sequentially. Within IET RPO, GTE RPO was $11.9 billion and GTS RPO was $14.8 billion.

Income tax expense in the third quarter of 2024 was $235 million.

Other non-operating income in the third quarter of 2024 was $134 million. Included in other non-operating income were net mark-to-market gains in fair value for certain equity investments of $99 million.

GAAP diluted earnings per share was $0.77. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.67. Excluded from adjusted diluted earnings per share were all items listed in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

Cash flow from operating activities was $1,010 million for the third quarter of 2024. Free cash flow (a non-GAAP financial measure) for the quarter was $754 million. A reconciliation from GAAP has been provided in Table 1d in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

Capital expenditures, net of proceeds from disposal of assets, were $256 million for the third quarter of 2024, of which $182 million for OFSE and $62 million for IET.

Results by Reporting Segment

The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

Oilfield Services & Equipment

(in millions)	Three Months Ended									Variance
Segment results	September 30, 2024			June 30, 2024			September 30, 2023			Sequential	Year-over-year
Orders	$	3,807		$	4,068		$	4,178		(6%)	(9%)
Revenue	$	3,963		$	4,011		$	3,951		(1%)	—%
Operating income	$	547		$	493		$	465		11%	18%
Operating margin		13.8	%		12.3	%		11.8	%	1.5pts	2pts
Depreciation & amortization	$	218		$	223		$	206		(2%)	6%
EBITDA*	$	765		$	716		$	670		7%	14%
EBITDA margin*		19.3	%		17.8	%		17.0	%	1.5pts	2.3pts

(in millions)	Three Months Ended						Variance
Revenue by Product Line	September 30, 2024		June 30, 2024		September 30, 2023		Sequential	Year-over-year
Well Construction	$	1,050	$	1,090	$	1,128	(4%)	(7%)
Completions, Intervention & Measurements		1,009		1,118		1,085	(10%)	(7%)
Production Solutions		983		958		967	3%	2%
Subsea & Surface Pressure Systems		921		845		770	9%	20%
Total Revenue	$	3,963	$	4,011	$	3,951	(1%)	—%

(in millions)	Three Months Ended						Variance
Revenue by Geographic Region	September 30, 2024		June 30, 2024		September 30, 2023		Sequential	Year-over-year
North America	$	971	$	1,023	$	1,064	(5%)	(9%)
Latin America		648		663		695	(2%)	(7%)
Europe/CIS/Sub-Saharan Africa		933		827		695	13%	34%
Middle East/Asia		1,411		1,498		1,497	(6%)	(6%)
Total Revenue	$	3,963	$	4,011	$	3,951	(1%)	—%

North America	$	971	$	1,023	$	1,064	(5%)	(9%)
International		2,992		2,988		2,887	—%	4%

* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” EBITDA margin is defined as EBITDA divided by revenue.

OFSE orders of $3,807 million for the third quarter decreased by $261 million sequentially. Subsea and Surface Pressure Systems orders were $776 million, down 13% sequentially, and down 23% year-over-year.

OFSE revenue of $3,963 million for the third quarter was down 1% sequentially, and up $12 million year-over-year.

North America revenue was $971 million, down 5% sequentially. International revenue was $2,992 million, an increase of $4 million sequentially, driven by growth in Europe/CIS/Sub-Saharan Africa regions partially offset by decline in Middle East/Asia.

Segment operating income for the third quarter was $547 million, an increase of $54 million, or 11%, sequentially. Segment EBITDA for the third quarter was $765 million, an increase of $49 million, or 7% sequentially. The sequential increase in segment operating income and EBITDA was driven by positive price and productivity, partially offset by pressure from negative business mix and lower volume.

Industrial & Energy Technology

(in millions)	Three Months Ended									Variance
Segment results	September 30, 2024			June 30, 2024			September 30, 2023			Sequential	Year-over-year
Orders	$	2,868		$	3,458		$	4,334		(17%)	(34%)
Revenue	$	2,945		$	3,128		$	2,691		(6%)	9%
Operating income	$	474		$	442		$	346		7%	37%
Operating margin		16.1	%		14.1	%		12.9	%	2pts	3.2pts
Depreciation & amortization	$	54		$	55		$	57		(2%)	(6%)
EBITDA*	$	528		$	497		$	403		6%	31%
EBITDA margin*		17.9	%		15.9	%		15.0	%	2pts	2.9pts

(in millions)	Three Months Ended						Variance
Orders by Product Line	September 30, 2024		June 30, 2024		September 30, 2023		Sequential	Year-over-year
Gas Technology Equipment	$	1,088	$	1,493	$	2,813	(27%)	(61%)
Gas Technology Services		778		769		724	1%	7%
Total Gas Technology		1,866		2,261		3,537	(17%)	(47%)
Industrial Products		494		524		477	(6%)	4%
Industrial Solutions		293		281		271	4%	8%
Total Industrial Technology		787		805		748	(2%)	5%
Climate Technology Solutions		215		392		49	(45%)	F
Total Orders	$	2,868	$	3,458	$	4,334	(17%)	(34%)

(in millions)	Three Months Ended						Variance
Revenue by Product Line	September 30, 2024		June 30, 2024		September 30, 2023		Sequential	Year-over-year
Gas Technology Equipment	$	1,281	$	1,539	$	1,227	(17%)	4%
Gas Technology Services		697		691		637	1%	9%
Total Gas Technology		1,978		2,230		1,865	(11%)	6%
Industrial Products		520		509		520	2%	—%
Industrial Solutions		257		262		243	(2%)	6%
Total Industrial Technology		777		770		763	1%	2%
Climate Technology Solutions		191		128		63	49%	F
Total Revenue	$	2,945	$	3,128	$	2,691	(6%)	9%

* Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” EBITDA margin is defined as EBITDA divided by revenue.

“F” is used when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

IET orders of $2,868 million for the third quarter decreased by $1,465 million, or 34% year-over-year. The decrease was driven primarily by GTE orders which were down $1,725 million or 61% year-over-year.

IET revenue of $2,945 million for the quarter increased $254 million, or 9% year-over-year. The increase was driven primarily by Climate Technology Solutions, up favorably year-over-year, and by Gas Technology, up 6% year-over-year.

Segment operating income for the quarter was $474 million, up 37% year-over-year. Segment EBITDA for the quarter was $528 million, up $125 million, or 31% year-over-year. The year-over-year increase in segment operating income and EBITDA was primarily driven by higher volume, pricing and productivity, partially offset by cost inflation.

Reconciliation of GAAP to non-GAAP Financial Measures

Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted operating income; EBITDA; EBITDA margin; adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

Table 1a. Reconciliation of GAAP and Adjusted Operating Income

	Three Months Ended
(in millions)	September 30, 2024		June 30, 2024		September 30, 2023
Operating income (GAAP)	$	930	$	833	$	714
Restructuring, impairment & other		—		14		2
Total operating income adjustments		—		14		2
Adjusted operating income (non-GAAP)	$	930	$	847	$	716

Table 1a reconciles operating income, which is the directly comparable financial result determined in accordance with GAAP, to adjusted operating income. Adjusted operating income excludes the impact of certain identified items.

Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to EBITDA and Adjusted EBITDA

	Three Months Ended
(in millions)	September 30, 2024			June 30, 2024			September 30, 2023
Net income attributable to Baker Hughes (GAAP)	$	766		$	579		$	518
Net income attributable to noncontrolling interests		8			2			6
Provision for income taxes		235			243			235
Interest expense, net		55			47			49
Other non-operating income, net		(134	)		(38	)		(94	)
Operating income (GAAP)		930			833			714

Depreciation & amortization		278			283			267
EBITDA (non-GAAP)		1,208			1,116			981
Total operating income adjustments⁽¹⁾		—			14			2
Adjusted EBITDA (non-GAAP)	$	1,208		$	1,130		$	983

⁽¹⁾See Table 1a for the identified adjustments to operating income.

Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to EBITDA. Adjusted EBITDA excludes the impact of certain identified items.

Table 1c. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

	Three Months Ended
(in millions, except per share amounts)	September 30, 2024			June 30, 2024			September 30, 2023
Net income attributable to Baker Hughes (GAAP)	$	766		$	579		$	518
Total operating income adjustments⁽¹⁾		—			14			2
Other adjustments (non-operating)⁽²⁾		(99	)		(19	)		(95	)
Tax adjustments⁽³⁾		(1	)		(6	)		2
Total adjustments, net of income tax		(100	)		(11	)		(91	)
Less: adjustments attributable to noncontrolling interests		—			—			—
Adjustments attributable to Baker Hughes		(100	)		(11	)		(91	)
Adjusted net income attributable to Baker Hughes (non-GAAP)	$	666		$	568		$	427


Denominator:
Weighted-average shares of Class A common stock outstanding diluted		999			1,001			1,017
Adjusted earnings per share – diluted (non-GAAP)	$	0.67		$	0.57		$	0.42

⁽¹⁾See Table 1a for the identified adjustments to operating income.

⁽²⁾All periods primarily reflect the net gain or loss on changes in fair value for certain equity investments.

⁽³⁾All periods reflect the tax associated with the other operating and non-operating adjustments.

Table 1c reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

Table 1d. Reconciliation of Net Cash Flows From Operating Activities to Free Cash Flow

	Three Months Ended
(in millions)	September 30, 2024			June 30, 2024			September 30, 2023
Net cash flows from operating activities (GAAP)	$	1,010		$	348		$	811
Add: cash used for capital expenditures, net of proceeds from disposal of assets		(256	)		(242	)		(219	)
Free cash flow (non-GAAP)	$	754		$	106		$	592

Table 1d reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.

Financial Tables (GAAP)

Condensed Consolidated Statements of Income (Loss)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions, except per share amounts)		2024			2023			2024			2023
Revenue	$	6,908		$	6,641		$	20,465		$	18,671
Costs and expenses:
Cost of revenue		5,366			5,298			16,155			14,867
Selling, general and administrative		612			627			1,873			1,977
Restructuring, impairment and other		—			2			21			161
Total costs and expenses		5,978			5,927			18,049			17,005
Operating income		930			714			2,416			1,666
Other non-operating income, net		134			94			200			638
Interest expense, net		(55	)		(49	)		(143	)		(171	)
Income before income taxes		1,009			759			2,473			2,133
Provision for income taxes		(235	)		(235	)		(656	)		(614	)
Net income		774			524			1,817			1,519
Less: Net income attributable to noncontrolling interests		8			6			17			16
Net income attributable to Baker Hughes Company	$	766		$	518		$	1,800		$	1,503

Per share amounts:
Basic income per Class A common stock	$	0.77		$	0.51		$	1.81		$	1.49
Diluted income per Class A common stock	$	0.77		$	0.51		$	1.80		$	1.48

Weighted average shares:
Class A basic		993			1,009			996			1,010
Class A diluted		999			1,017			1,001			1,016

Cash dividend per Class A common stock	$	0.21		$	0.20		$	0.63		$	0.58

Condensed Consolidated Statements of Financial Position

(Unaudited)

(In millions)	September 30, 2024		December 31, 2023
ASSETS
Current Assets:
Cash and cash equivalents	$	2,664	$	2,646
Current receivables, net		6,920		7,075
Inventories, net		5,254		5,094
All other current assets		1,730		1,486
Total current assets		16,568		16,301
Property, plant and equipment, less accumulated depreciation		5,150		4,893
Goodwill		6,167		6,137
Other intangible assets, net		3,995		4,093
Contract and other deferred assets		1,904		1,756
All other assets		3,746		3,765
Total assets	$	37,530	$	36,945
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	4,431	$	4,471
Short-term and current portion of long-term debt		52		148
Progress collections and deferred income		5,685		5,542
All other current liabilities		2,622		2,830
Total current liabilities		12,790		12,991
Long-term debt		5,984		5,872
Liabilities for pensions and other postretirement benefits		991		978
All other liabilities		1,422		1,585
Equity		16,343		15,519
Total liabilities and equity	$	37,530	$	36,945

Outstanding Baker Hughes Company shares:
Class A common stock		989		998

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended September 30,			Nine Months Ended September 30,
(In millions)		2024			2024			2023
Cash flows from operating activities:
Net income	$	774		$	1,817		$	1,519
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		278			844			813
Stock-based compensation cost		53			154			148
Gain on equity securities		(99	)		(171	)		(639	)
Provision for deferred income taxes		2			35			68
Other asset impairments		—			—			43
Working capital		(21	)		(57	)		19
Other operating items, net		23			(480	)		159
Net cash flows provided by operating activities		1,010			2,142			2,130
Cash flows from investing activities:
Expenditures for capital assets		(300	)		(925	)		(868	)
Proceeds from disposal of assets		44			145			150
Proceeds from sale of equity securities		—			21			372
Proceeds from business dispositions		—			—			293
Net cash paid for acquisitions		—			—			(301	)
Other investing items, net		(13	)		(40	)		(149	)
Net cash flows used in investing activities		(269	)		(799	)		(503	)
Cash flows from financing activities:
Repayment of long-term debt		(9	)		(134	)		—
Dividends paid		(209	)		(628	)		(586	)
Repurchase of Class A common stock		(152	)		(476	)		(219	)
Other financing items, net		6			(55	)		(56	)
Net cash flows used in financing activities		(364	)		(1,293	)		(861	)
Effect of currency exchange rate changes on cash and cash equivalents		3			(32	)		(53	)
Increase in cash and cash equivalents		380			18			713
Cash and cash equivalents, beginning of period		2,284			2,646			2,488
Cash and cash equivalents, end of period	$	2,664		$	2,664		$	3,201
Supplemental cash flows disclosures:
Income taxes paid, net of refunds	$	397		$	733		$	463
Interest paid	$	49		$	199		$	205

Supplemental Financial Information

Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

Conference Call and Webcast

The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, October 23, 2024, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

Forward-Looking Statements

This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “forward-looking statement”). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target”, “goal” or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2023 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: http://www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: http://www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

About Baker Hughes:

Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com

For more information, please contact:

Investor Relations

Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com

Media Relations

Adrienne Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com

The MIL Network –

January 24, 2025

MIL-OSI USA: Congressman Harris Announces Upcoming Military Service Academy Nomination Deadline

Source: United States House of Representatives – Congressman Andy Harris (MD-01)

Washington, D.C. – Today the office of Congressman Andy Harris, M.D., announced the upcoming deadline for high school students interested in pursuing a Congressional nomination to submit their application to attend one of the nation’s military service academies.

To be considered for a nomination, each applicant must submit a complete application before November 1, 2024. A complete application must include:

Online application
Three Letters of Recommendations: One letter should be written by your High School Principal or Guidance Counselor. Other letters may be written by teachers, coaches, scout masters, clergy or community leaders who can accurately comment and attest to your character, abilities and potential success at a Military Academy. Letters should be sealed and submitted with the application packet.
Official High School Transcript: Please include a copy of your Senior Class Schedule. Senior grades should be submitted as soon as they are available and will be accepted after the application deadline.
Photograph: 4×6 color photograph
Official SAT/ACT Scores: Scores must be sent directly to Congressman Harris’ Office by the testing service. The institution code for SAT scores is 5158 and the ACT scores code is 7443. You are encouraged to take the SAT or ACT exams “early and often” in order to improve your academic competitiveness. Academies will accept the highest scores in each academic area (superscore), regardless of testing date.

Any questions about this process can be emailed to MD01Academy@mail.house.gov. The subject line should read “[first name] [last name] Academy Application Process.”

For media inquiries, please contact Anna Adamian at Anna.A@mail.house.gov

MIL OSI USA News –

January 24, 2025

MIL-OSI Australia: Export Market Development Grants open for applications soon

Source: Minister for Trade

The next round of the Australian Government’s Export Market Development Grants (EMDG) program will open for applications in early November.

The EMDG program has been helping Australian businesses go global for almost half a century.

Recent changes to the program will deliver larger grants to eligible businesses, helping them expand their markets, and export their goods around the world.

Applications will open on the following dates across the different grant categories:

Representative bodies, applications open 10am (AEDT) on 6 November.
Tier 1 – ready to export, applications open 10am (AEDT) on 12 November.
Tier 2 – exporting within existing markets, applications open 10am (AEDT) on 12 November.
Tier 3 – exporting to new key markets, applications open 10am (AEDT) on 12 November.

Austrade will issue grant agreements to successful applicants for up to 2 years for planned eligible expenditure in 2025-26 and 2026-27, with over $100 million available in each financial year. Austrade will close applications in each tier once the funding is allocated.

As this is the first time the new guidelines are in place for a round, I encourage businesses and representative bodies to prepare to apply well in advance and have their digital identity ready.

There are a range of resources available to help businesses get ready to apply. The Grant Guidelines and other program resources are available on the Austrade website to help you understand program eligibility for each tier, and how to apply.

New to export businesses that wish to apply in Tier 1 can complete a free export readiness test and/or Austrade-recognised export training courses available in the Australian Government’s Go Global Toolkit.

On October 30th and 31st, Austrade will host public webinars to demonstrate how to complete and submit an application online. These webinars are tailored to each of the specific tiers.

Register to attend at: Export Market Development Grants (EMDG) webinars – how to submit your online application.

Questions about the program can also be directed to EMDG.help@austrade.gov.au.

MIL OSI News –

January 24, 2025

MIL-OSI Australia: Supporting community-led action to protect Aboriginal and Torres Strait Islander children

Source: Ministers for Social Services

23 October 2024

The Albanese Labor Government is investing $10.89 million for nine Aboriginal and Torres Strait Islander Community-Controlled Organisations to support campaigns and services that help children to develop healthy relationships to prevent gender-based violence before it starts.

This investment is a key initiative under the Aboriginal and Torres Strait Islander Action Plan 2023-2025, which was launched by all Australian governments in August last year.

Minister for Social Services Amanda Rishworth will today visit the Victorian Aboriginal Child and Community Agency (VACCA) in Melbourne to learn more about its Deadly Kids project, which will benefit under this investment.

“Our investment in projects like Deadly Kids recognises the importance of community-led action to prevent violence in First Nations communities,” Minster Rishworth said.

“This project is one of nine which we are funding across the country. Together, the successful organisations will deliver a range of prevention programs and campaigns that promote healthy relationships from an early age.

“By working together with Aboriginal Community-Controlled Organisations and communities, we can work towards addressing – and ultimately ending – the disproportionate impact of gender-based violence for Aboriginal and Torres Strait Islander peoples.”

The Deadly Kids project will develop a train-the-trainer package promoting healthy respectful relationships and deliver it to youth groups of Aboriginal and Torres Strait Islander children aged 8-12 years across the six regions VACCA supports. This includes Northern Metropolitan, Southern Metropolitan, Eastern Metropolitan, Western Metropolitan, Inner Gippsland and Ovens Murray.

The training will help children to recognise signs of healthy and unhealthy relationships, helping to prevent family violence from happening as they move into their adolescent years and start forming their first intimate partner relationships.

This initiative will also help progress Target 13 under the National Agreement on Closing the Gap 2020-2030, which aims to reduce all forms of violence against Aboriginal and Torres Strait Islander women and children by at least 50 per cent by 2031.

More information on The National Plan to End Violence against Women and Children 2022-2032 is available on the Department of Social Services website.

This grant funding is a key initiative of the Aboriginal and Torres Strait Islander Action Plan.

If you or someone you know is experiencing, or at risk of experiencing, domestic, family or sexual violence, call 1800 737 732, text 0458 737 732 or visit http://www.1800RESPECT.org.au for online chat and video call services.

If you are concerned about your behaviour or use of violence, you can contact the Men’s Referral Service on 1300 766 491 or visit http://www.ntv.org.au.

Feeling worried or no good? No shame, no judgement, safe place to yarn. Speak to a 13YARN Crisis Support Worker on 13 92 76. This service is available 24 hours a day, 7 days a week.

MIL OSI News –

January 24, 2025

MIL-OSI Australia: G20 meetings in the United States

Source: Australian Treasurer

I will join key economic ministers and central bank governors from the world’s most significant economies at the G20, International Monetary Fund and World Bank annual meetings over the coming days in Washington DC.

Australia is not immune from the volatility and vulnerability which characterises the global economy.

The risk of further escalation in the Middle East threatens a resurgence in oil prices and casts a dark shadow over the global outlook.

Conflict in the Middle East compounds the pressures already coming at us from the war in Ukraine, the slowdown in China, persistent global inflation, tepid global growth and sharp movements on stock markets.

There is always a premium on responsible economic management and engagement but especially now, with all this uncertainty around the world.

This is a really critical time to confer with colleagues and counterparts.

There will be in‑depth discussions on the global economy, the energy transformation, economic security and reform of our multilateral institutions.

This will include meetings with:

New Japanese Finance Minister Katsonobu Kato, who I will meet for the first time;
US Treasury Secretary Janet Yellen, for our sixth bilateral;
Chair of the US Federal Reserve Jerome Powell;
Director of President Biden’s National Economic Council Lael Brainard;
South Korean Deputy Prime Minister and Minister of Economy Choi Sang‑Mok; and
Canadian Deputy Prime Minister Chrystia Freeland.

I will participate in discussions as part of the G20 Taskforce on a Global Mobilisation Against Climate Change. Our focus will be on attracting the capital we need to create new jobs and opportunities in the transformation to cleaner and cheaper energy.

I’ll also have an opportunity to be briefed on Australia’s interests in the United States by Ambassador Kevin Rudd.

Responsible economic management is a defining feature of the Albanese Labor Government in these uncertain times.

Our Budget surpluses aren’t an end in themselves, they help in the fight against inflation, provide room for our priorities and they help build buffers against some of this global volatility.

Getting inflation down, helping with the cost of living, repairing the Budget and reforming our economy are the essential components of our strategy and we are making welcome progress.

In a little over two years we have halved inflation, created a million new jobs, got real wages growing again, provided tax relief to every taxpayer, delivered the first back‑to‑back surpluses in two decades, avoided $150 billion of inherited debt and saved tens of billions of dollars in interest costs.

These meetings will provide important perspectives on the global outlook and allow us to make further progress at home and with our key international partners.

MIL OSI News –

January 24, 2025

MIL-OSI Australia: Child protection caseworkers and government sign historic deal

Source: New South Wales Premiere

Published: 23 October 2024

Released by: Minister for Families and Communities

The NSW Government and the Public Service Association (PSA) have signed a reform agreement to deliver an immediate $8,283 pay increase for new caseworkers and improve rates of pay, roles and conditions for the state’s child protection workforce.

The agreement covers more than 2,000 public sector caseworkers who do one of the most important jobs in the state, keeping vulnerable children safe.

Under the reform agreement:

Child protection caseworkers will receive a 4 per cent pay increase this year, backdated to 1 July 2024, plus 0.5 per cent in superannuation. This totals 8 per cent in the first two years of the Labor Government;
The commencing rate for new child protection caseworkers in 2024-25 has been lifted by $8,283, including the 4 per cent;
A standalone child protection worker classification will be established for the first time in NSW history (currently child protection workers are under the general classification structure which covers nearly 80,000 workers);
The NSW Government and the PSA will enter into a reform process to update role descriptions and examine specific conditions such assafe working allocation guidelines;
At the conclusion of the reform process a three-year pay agreement will be made from 2025-26 onwards under a new Child Protection Award.

This agreement delivers on a promise by the NSW Government to better support the vital work caseworkers do and consigns the former Coalition government’s punitive public sector wages cap to history.

The NSW Government is also undertaking significant structural reform of the child protection system following years of neglect under the former government.

The government will ban the use of unaccredited emergency accommodation for vulnerable children in the foster care system from March next year, with the government already achieving a 72 per cent reduction in the number of these arrangements since November 2023.

The 2024-25 NSW Budget has invested $224 million in funding that will allow the Department of Communities and Justice (DCJ) to:

re-enter the market as a foster care provider and expand the recruitment of DCJ emergency foster carers to include longer-term carers,
introduce government-run intensive and professional foster care models,
deliver government-run residential care for children where non-government providers are unable to offer stable placements,
ensure children living in residential care are supported by high quality, accredited providers, and
commence recruiting family time workers and additional caseworkers to undertake carer authorisation assessments.

These initial measures will help rebuild the broken out-of-home care system and ensure that more children grow up in safe and loving homes in NSW.

Minister for Families and Communities, Kate Washington said:

“Child protection caseworkers have one of the most challenging and important jobs in the world, keeping vulnerable children safe.

“When we came into government, we inherited a broken child protection system with a workforce walking out the door because they hadn’t felt valued in years.

“I have seen firsthand the incredible difference these workers make to children and families, and I hope that this agreement will encourage more caseworkers to take up positions with DCJ.

“I thank the PSA and their hardworking members for their advocacy and commitment to keeping children in NSW safe.”

MIL OSI News –

January 24, 2025

MIL-OSI Australia: Improving flood resilience around singleton

Source: New South Wales Premiere

Published: 23 October 2024

Released by: Minister for Regional Transport and Roads

The Singleton Local Government Area has received $7 million in funding from the Albanese and Minns Governments to help improve the resilience of Kilfoyles Bridge and Stanhope Road ahead of future flood events.

The funds, provided through the Regional Roads Transport Recovery Package, will go towards:

Raising Stanhope Road at Elderslie; and
The betterment of Kilfoyles Bridge and approaches on Luskintyre Road with a two-lane concrete structure.

Work to raise the road level along a one kilometer section of Stanhope Road is already underway and will involve major culvert upgrades to better manage drainage and improve access to the route during future rainfalls.

The funding also covers raising Kilfoyles Bridge and approaches on Luskintyre Road by at least 2.2 metres, and upgrading the bridge to a two-lane concrete structure with a higher bridge deck and scour protection. This work is expected to start in November 2024.

The improvements will help reduce the likelihood of road and bridge closures during severe weather and reduce costs for ongoing repairs and maintenance.

These upgrades are jointly funded through the Disaster Recovery Funding Arrangements (DRFA).

Quotes attributable to Federal Minister for Emergency Management Jenny McAllister:

“We are working with the Minns Government and regional councils to ensure communities have resilient infrastructure they can rely on every day, but particularly in times of crisis.”

“Upgraded roads and bridges will help residents stay connected during flooding and improve access to emergency services.

“By raising the road and increasing the capacity of culverts, these projects will also reduce turbulence and help flood water escape quickly.”

Quotes attributable to Member for Hunter Dan Repacholi:

“We’ve seen over the last few years the devastation that constant rain and flooding has had on our communities and on our vital infrastructure.

“Keeping our roads and bridges open during flood events is vital to stop communities being isolated.

“It’s all about building back better and it’s about the Albanese Labor Government working with the states and the local government so that we can build back better and give people the future they need.”

Quotes attributable to Minister for Regional Transport and Roads Jenny Aitchison:

“This key investment by the Minns and Albanese Labor Governments will improve Singleton’s resilience to floods.

“Workers, students, tourists, freight operators and other residents will be able to continue to go about their business, get to education and medical appointments with less inconvenience and disruption during disasters.

“This will reduce their reliance on Surf Life Saving and the State Emergency Service (SES), particularly for residents of smaller communities like Lambs Valley and Stanhope.

Quotes attributable to NSW Labor’s spokesperson for Upper Hunter Emily Suvaal:

“These flood resilience projects will keep communities better connected during disasters while importantly protecting lives and livelihoods across the Upper Hunter.

“It’s great to see all three levels of government working together to deliver projects that make such a big difference to our regional communities.”

Quotes attributable to Singleton Council Mayor Sue Moore:

“I’m very pleased to have State and Federal Governments working together to improve access in times of flooding for Singleton rural communities.”

Quotes attributable to Singleton Council General Manager Justin Fitzpatrick-Barr:

“Stanhope Road and Kilfoyles Bridge form an important transport route for the community and agricultural businesses but in times of flooding, they become inundated and unpassable for days at a time.

“By upgrading and raising the level of this road and bridge, we’ll keep our community connected during future flooding disasters.

“We’re extremely grateful to the Australian and NSW governments for their support to deliver these integral infrastructure projects for Singleton.”

MIL OSI News –

January 24, 2025

MIL-OSI Australia: NSW invites technology and AI solutions to improve planning assessments

Source: New South Wales Premiere

Published: 23 October 2024

Released by: Minister for Planning and Public Spaces

The Minns Labor Government is calling on the best and brightest in developing Artificial Intelligence (AI) and technology tools to improve the NSW Planning Portal and speed up assessment timeframes to deliver more homes, jobs and infrastructure.

The NSW Planning Portal processes all the state’s Development Applications (DA) as well as Complying Development Certificates (CDC) and Concurrence and Referrals (C&R) for DAs that require state agency advice.

The NSW Government has launched two Requests for Proposals (RFP) seeking innovative technology and AI solutions to integrate into the Planning Portal as a feature of the Next Generation NSW Planning Portal Ecosystem. The first RFP asks for:

Products to improve DA quality and assessment times that can be integrated into the existing Portal
Products or services that use AI to provide data analytics and spatial insights
Products to strengthen cybersecurity and improve user privacy including document security and certificate forgery

A second tender seeking a range of technology enhancements to upgrade the core platform functionality of the NSW Planning Portal which include:

Making this legacy platform more efficient through upgrades to assessment and implementation planning
Seeking products that improve security through data processing and document migration and validation
Enhancements to the core platform, making it more reliable and improving the user experience

These two RFPs follow the NSW Government’s $5.6 million investment to introduce AI into the planning system with 16 councils currently trialling AI solutions through the AI Early Adopter Grant.

To provide a Request for Proposal for the NSW Planning Portal, applicants should respond by 3pm on Friday 1 November: NSW Planning Portal – Pega Upgrade – SR00252 | buy.nsw

To provide a Request for Proposal for the Next Generation NSW Planning Portal ecosystem applicants should respond by 3pm on Monday 4 November: Next Generation NSW Planning Portal Ecosystem – SR00132 | buy.nsw

Minister for Planning and Public Spaces Paul Scully said:

“The NSW Planning Portal services millions of people, it should be utilising the best technological platforms available to us.

“AI can assist planners to determine DAs much faster and that means faster assessments for housing across NSW.

“We are also looking for solutions to improve the core technology of the Planning Portal to improve user experience.

“The Minns Labor Government is bringing the planning system into the 21^st century.

“Our Early Adopter AI grant Program has already seen 16 councils commence technology trials to help their planners free up valuable time and energy to improve assessment times. This next round of technology enhancements will bring us even closer to the future of digital assessment in the planning system.”

MIL OSI News –

January 24, 2025

MIL-OSI: Andrew Cardno to Deliver Keynote at November Gaming Conference in Phoenix: “How are Technology Advancements Impacting Decision Making and Driving Innovation in Gaming?”

Source: GlobeNewswire (MIL-OSI)

SAN DIEGO, Oct. 22, 2024 (GLOBE NEWSWIRE) — The gaming industry continues to evolve with the rapid integration of advanced technologies, offering new pathways for innovation and decision-making. Andrew Cardno, Chief Technology Officer of Quick Custom Intelligence (QCI), will deliver a keynote address titled “How are Technology Advancements Impacting Decision Making and Driving Innovation in Gaming?” at this year’s premier gaming conference, taking place on November 12th and 13th in Phoenix, Arizona.

Cardno, a leading expert with over two decades of experience in gaming and technology, will explore how advancements such as artificial intelligence, machine learning, and data-driven solutions are reshaping decision-making processes within the gaming industry. His address will provide actionable insights for professionals seeking to stay ahead in this fast-paced environment.

“Technology is no longer just an enabler; it’s the driving force behind innovation in gaming,” said Andrew Cardno. “At this year’s conference, I will delve into how these advancements can empower industry leaders to make better, faster decisions and capitalize on new opportunities for growth.”

Mark Pace, President of the International Gaming Standards Association (IGSA), praised Cardno’s expertise: “Andrew Cardno has a deep understanding of how technology is transforming the gaming industry. His ability to translate complex innovations into practical, strategic insights makes him the ideal keynote speaker. His work continues to inspire and guide decision-makers across the gaming world.”

The conference, held in Phoenix on November 12th and 13th, promises to be a hub of cutting-edge discussions and networking opportunities, bringing together top leaders to explore the future of gaming.

ABOUT QCI
Quick Custom Intelligence (QCI) has pioneered the revolutionary QCI AGI Platform, an artificial intelligence platform that seamlessly integrates player development, marketing, and gaming operations with powerful, real-time tools designed specifically for the gaming and hospitality industries. Our advanced, highly configurable software is deployed in over 250 casino resorts across North America, Australia, New Zealand, Canada, Latin America, and The Bahamas. The QCI AGI Platform, which manages more than $35 billion in annual gross gaming revenue, stands as a best-in-class solution, whether on-premises, hybrid, or cloud-based, enabling fully coordinated activities across all aspects of gaming or hospitality operations. QCI’s data-driven, AI-powered software propels swift, informed decision-making vital in the ever-changing casino industry, assisting casinos in optimizing resources and profits, crafting effective marketing campaigns, and enhancing customer loyalty. QCI was co-founded by Dr. Ralph Thomas and Mr. Andrew Cardno and is based in San Diego, with additional offices in Las Vegas, St. Louis, Denver, Dallas, and Tulsa. Main phone number: (858) 299.5715. Visit us at http://www.quickcustomintelligence.com.

ABOUT Andrew Cardno
Andrew Cardno is a distinguished figure in the realm of artificial intelligence and data plumbing. With over two decades spearheading private Ph.D. and master’s level research teams, his expertise has made significant waves in data tooling. Andrew’s innate ability to innovate has led him to devise numerous pioneering visualization methods. Of these, the most notable is the deep zoom image format, a groundbreaking innovation that has since become a cornerstone in the majority of today’s mapping tools. His leadership acumen has earned him two coveted Smithsonian Laureates, and teams under his mentorship have clinched 40 industry awards, including three pivotal gaming industry transformation awards. Together with Dr. Ralph Thomas, the duo co-founded Quick Custom Intelligence, amplifying their collaborative innovative capacities. A testament to his inventive prowess, Andrew boasts over 150 patent applications. Across various industries—be it telecommunications with Telstra Australia, retail with giants like Walmart and Best Buy, or the medical sector with esteemed institutions like City Of Hope and UCSD—Andrew’s impact is deeply felt. He has enriched the literature with insights, co-authoring eight influential books with Dr. Thomas and contributing to over 100 industry publications. An advocate for community and diversity, Andrew’s work has touched over 100 Native American Tribal Resorts, underscoring his expansive and inclusive professional endeavors.

Contact:
Laurel Kay, Quick Custom Intelligence
Phone: 858-349-8354

The MIL Network –

January 24, 2025

MIL-OSI New Zealand: ACT welcomes commonsense change in work rights for migrant families

Source: ACT Party

ACT’s Immigration spokesperson Dr Parmjeet Parmar is welcoming today’s announcement that the Government intends to restore open work rights to the partners of skilled migrants, delivering on an ACT coalition commitment.

“Migrants are vital to address skill shortages in New Zealand,” says Dr Parmar.

“It never made sense to allow the partners of visa holders to be in New Zealand, consume services, and yet be banned from working and paying taxes.

“Today’s change is common sense, effectively lifting a ban contributing to New Zealand – something most migrants would be more than happy to do.

“We saw what happened when our borders were sealed shut. Businesses went to the wall, fruit was left to rot on the ground, the health system struggled to keep up with demand, and families were separated.

“But many were at risk of leaving due to unworkable rules requiring the partners of Accredited Employer Work Visa holders to also work for accredited employers and be paid the median wage. Making New Zealand a much less attractive place for migrants to live and work.

“This concern has been raised with me by businesses who are at risk of losing valuable staff. The uncertainty and distress this has caused for migrants and their families has been immense. I am relieved this issue is finally being resolved.

“ACT’s coalition agreement included a commitment to ‘liberalise the rules to make it easier for family members of visa holders to work in New Zealand, beginning with Skilled Migrant Category visa holders’.

“We are encouraged by this progress and are eager to see further improvements to our immigration settings to fulfil ACT’s coalition commitments and make our country the preferred destination for ideas, talent and investment.

“In particular, we look forward to introducing a five year, renewable parent category visa, conditional on that person’s healthcare costs being covered. This will help attract and retain migrants to ensure New Zealand has a competitive edge in the global war for talent. Doing right by migrants does not have to come at the cost of New Zealand’s own standard of living.

“Labour wrecked the economy and made a complete hash of immigration. ACT is determined to ensure that immigration policy is simple to navigate and welcoming so that migrants can reunite with their families, the economy can grow and more locals can be employed through job creation and investment.”

MIL OSI New Zealand News –

January 24, 2025

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