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  • MIL-OSI Canada: Oil and gas greenhouse gas pollution cap – Backgrounder to CGI Regulations

    Source: Government of Canada News

    Backgrounder

    November 4, 2024

    Context

    The proposed oil and gas greenhouse gas (GHG) pollution cap will incentivize the sector to invest in technically achievable decarbonization to attain significant emission reductions by 2030-2032. The policy will put the sector on a pathway to carbon neutrality by 2050, while enabling it to continue to respond to global demand.

    Oil and gas companies in Canada have proven repeatedly that they can innovate and develop new technologies to produce more competitive oil and gas with less pollution.

    While it continues to be a major supplier to global markets, Canada’s oil and gas sector has the opportunity to reinvest in its own competitiveness ahead of the anticipated future decline in global demand for oil and gas in a low-carbon future. Reinvesting in cleaner oil and gas production ensures that the sector contributes its fair share to GHG reductions in Canada and positions Canada for a stronger future for its workers and economy.

    The oil and gas sector is experiencing record profits within Canada. Coming out of the pandemic, operating profits in the oil and gas sector increased tenfold from $6.6 billion in 2019 to $66.6 billion in 2022. Despite that, there has been limited and declining overall investment in the sector in Canada over the last several years.

    The proposed Regulations would establish a cap-and-trade system that is designed to recognize producers with better emission performance and motivate higher-polluting facilities to reinvest record profits into more pollution-reducing projects.

    The oil and gas sector is a major contributor to Canada’s economy. In 2023, the sector generated $209 billion in gross domestic product (GDP) (PDF) and accounted for 25% of Canada’s exports (valued at $177 billion). It is also a major employer across the country, directly employing 181,800 people in 2023.

    The oil and gas sector is also Canada’s largest source of GHG pollution, responsible for 31% of Canada’s GHG emissions in 2022. Decreasing emissions in the oil and gas sector by introducing a cap on GHG pollution is necessary to ensure that the sector contributes its fair share to Canada’s ongoing efforts to tackle climate change and reach our GHG emission reduction targets and international commitments under the Paris Agreement.

    Strengthening emission performance and carbon management technologies in Canada’s oil and gas sector

    Canada’s oil and gas sector has the potential to be a supplier of choice as the demand for oil and gas for combustion declines in a low-carbon future. This would enable the sector to continue to be a major employer and source of economic activity across Canada, particularly in oil- and gas-producing regions.

    The proposed Regulations put a limit on pollution, not production. The proposed Regulations are carefully designed around what is technically achievable within the sector, while enabling continued production growth in response to global demand. In fact, modelling shows that Canadian oil and gas production is projected to increase 16% between 2019 and the 2030-2032 period with the proposed Regulations in place.

    Major emissions-reduction opportunities are available, and oil and gas producers are already investing in them. Methane is a particularly potent greenhouse gas, and most methane emissions represent a wasted resource because they are from leaks and other unintended sources. Preventing methane emissions is one of the lowest-cost ways to reduce GHG emissions, and the sector’s efforts have resulted in a steady decline in these emissions. New regulations to be finalized later this fall will ensure that the sector continues to cut methane emissions by at least 75% from 2012 levels by 2030. 

    Carbon capture is also going to play an increasingly important role in reducing emissions from oil and gas production, and Canada is well placed to cement its position as a global leader in this critical technology. According to both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), there is no credible path to carbon neutrality without carbon management technologies, such as carbon capture and storage, and their deployment must be rapid and immense, scaling up by nearly 200 times by 2050.

    The shift toward a low-carbon economy has created a rush of capital toward carbon management technologies worldwide. In the United States, there are many new carbon capture projects being deployed, with 150 currently under review at the U.S. Environmental Protection Agency.

    Canada has already established itself as a first mover and leader in the global carbon management sector, with some of the world’s first large-scale projects; favourable geology; cutting-edge innovators and start-ups; early investments in research, development, and demonstration; deep technical expertise; a robust policy and regulatory environment at the federal and provincial levels; and active international collaboration. The Government of Canada has launched a suite of policies with a mix of financial supports and regulatory measures to better position Canada’s economy for success.

    Approximately one-sixth of the world’s active large-scale carbon management projects, which use a range of approaches to capture carbon dioxide from point sources or directly from the atmosphere to be reused or durably stored, can be found in Canada, with a growing number in the construction, design and development phase across multiple sectors and regions.

    The continued development and deployment of carbon management technologies to help achieve Canada’s climate objectives will form the basis of a world-leading, multi-billion-dollar carbon management sector in Canada that supports inclusive, high-value employment, significant export opportunities and a more sustainable economy.

    Point-source carbon capture is a leading option for deep emissions reductions from the upstream oil and gas sector. Given the long lifespan of many existing heavy industrial facilities and the value of these industries to the Canadian economy, public-private collaboration is critical to advance strategic, economical, and regionally appropriate decarbonization pathways.

    The GHG oil and gas pollution cap adds to a suite of policy measures, which are designed to shift the oil and gas industry increasingly toward cleaner production through the use of carbon management systems and other technologies, including to reduce methane emissions and to switch to cleaner fuels. Those include other successful regulatory measures, such as federal, provincial, and territorial carbon pricing systems for industry, including Alberta’s TIER system, the federal Output-Based Pricing System, federal and provincial methane regulations, and the Clean Fuel Regulations.

    They also include a wide range of financial supports to support deployment and help develop the innovation ecosystem for carbon reduction technologies in Canada, including:

    • $319 million over 7 years for RD&D to advance the commercial viability of emerging carbon management technologies.
    • Refundable CCUS Investment Tax Credit (ITC), expected to provide $12.5 billion between 2022-2023 and 2034-2035, for eligible projects that enable permanent CO2 storage.
    • The Canada Growth Fund, totalling $15 billion, offers investment tools such as contracts for differences designed to address risk and accelerate private sector investment to grow Canada’s clean economy, including in the carbon management sector.
    • Strategic Innovation Fund, with $8 billion in funding to help companies reduce emissions and grow their business sustainably.
    • The Canada Infrastructure Bank (CIB) invests in CCUS infrastructure projects, including through its Project Acceleration funding for front-end engineering and design (FEED) capital expenditures.

    Increasingly, large-scale carbon capture projects are being built in both the oil and gas sector and other sectors. Recent projects include:

    • Strathcona Resources, an oilsands company with assets in Saskatchewan and Alberta and Canada’s fifth-largest oil producer, is launching a $2 billion project to store up to two million tonnes of CO2 per year, while creating hundreds of new jobs. The project has received support from the Canada Growth Fund.
    • Entropy, an Alberta-based company, is working on a project that will enable emissions reductions of approximately 2.8 million tonnes over 15 years and support more than 1,200 good jobs for Albertans.
    • Shell announced two new projects in Alberta: the Polaris Carbon Capture project and the Atlas Carbon Storage Hub. These projects aim to reduce industrial emissions by transitioning to cleaner technology. The Polaris project will capture approximately 650,000 tonnes of carbon a year while the Atlas project will store the captured carbon from Polaris and potentially other industrial facilities in the future. Once complete in 2028, these projects are expected to generate up to 2,000 jobs for Albertans.
    • The North West Redwater (NWR) Sturgeon Refinery, also operating in the Alberta Industrial Heartland, is the world’s first bitumen refinery built with carbon capture. 
    • The Alberta Carbon Trunk Line (ACTL), which transports captured carbon from facilities for storage in oil fields, will be used by new carbon capture projects throughout the province to transport captured CO2 to final storage sites.  
    • Linde announced an investment of more than $2 billion to build a clean hydrogen facility that will supply Dow’s Path2Zero production complex in Alberta. The facility will capture more than 2 million tonnes of carbon dioxide emissions per year for sequestration.

    Extensive consultation to date on the oil and gas GHG pollution cap

    The Government of Canada has engaged a broad range of partners and stakeholders on the oil and gas GHG pollution cap, including provinces and territories, Indigenous partners, industry, environmental groups, and Canadians. The government has held webinars, convened meetings, and published discussion papers to seek input and feedback. Since November 2021, the government has received over 250 written submissions from organizations, held over 100 meetings, and hosted seven public webinars.  

    The government published a Regulatory Framework to Cap Oil and Gas Sector GHG Emissions in December 2023. This Framework confirmed the government’s intent to implement the oil and gas GHG pollution cap through a new cap-and-trade system, and proposed various regulatory design features, including which subsectors would be covered by the oil and gas GHG pollution cap, the level of the GHG pollution cap, and rules about flexible compliance options.

    The proposed Regulations are carefully designed based on what is technically achievable in the sector, setting a limit on pollution, not production. Technically achievable emissions reductions were estimated based on an assessment of the abatement technologies that could feasibly be deployed within the upstream and LNG activities in the oil and gas sector by 2030-2032, considering the status of available technologies, projected levels of production, the availability of equipment and labour, and timelines for permitting and approvals.

    Estimates of technically achievable reductions included reductions related to compliance with the strengthened methane regulations, installation of carbon capture and storage technology, and electrification. The risk that not all technically achievable reductions would be implemented in time for the first compliance period was also taken into consideration.

    The government has now published proposed Regulations (PDF) to implement the oil and gas GHG pollution cap, and invites input from November 9, 2024, to January 8, 2025. The government will continue to engage with partners and stakeholders in the development of final regulations.

    Key components of the proposed national cap-and-trade system for oil and gas greenhouse gas pollution

    The proposed Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations (proposed Regulations) would establish a national cap-and-trade system that would apply to upstream oil and gas activities including onshore and offshore oil and gas production; oil sands production and upgrading; natural gas production and processing; and the production of LNG.

    The proposed Regulations have been developed under the Canadian Environmental Protection Act, 1999 (CEPA). Since 1988, CEPA has been used to address a wide range of environmental issues, including air pollution, chemicals, plastics and GHG emissions.

    • The cap-and-trade system will freely allocate emissions allowances to facilities covered by the system. At the end of each year, each facility will need to remit to the government one allowance for each tonne of carbon pollution it has emitted. Over time, the government will give out fewer allowances, corresponding to the declining emissions cap.
    • Operators will face an ongoing incentive to reduce their emissions. If an operator does not have enough allowances to cover their emissions, they will be able to buy allowances from other operators that have invested in pollution reduction. Operators can also contribute to a decarbonization program or use GHG offset credits to cover a small portion of their emissions (up to 10% for the decarbonization program and up to 20% for offsets, for a maximum of 20% for both options). The decarbonization program would fund projects that support the reduction of emissions from the sector. The total of all allowances and the overall 20% limit on compliance flexibility creates a legal upper bound on emissions from the sector.
    • The oil and gas GHG pollution cap will limit emissions, not production, and will encourage industry to reinvest into projects that lower pollution while providing flexibility to respond to changes in the global market.  
    • To make sure the oil and gas GHG pollution cap accounts for current activity levels, the proposed Regulations would use data reported by operators for 2026 to set the first oil and gas GHG pollution cap level. The oil and gas GHG pollution cap for the first compliance period, 2030-2032, would be set at 27% below emissions reported for 2026, which is estimated to be equivalent to 35% below 2019 emissions.
    • Using 2026 for reported data means the oil and gas GHG pollution cap would be based on real-world conditions. The final oil and gas GHG pollution cap level would be published before the end of 2027.
    • The proposed Regulations allocate allowances to covered operators using specified distribution rates—defined in allowances per unit of production—for each type of covered activity. Allowances will be distributed before the start of each year (starting in 2029 for 2030, the first compliance year). To ensure that allowances are distributed to the level of the emissions cap for each year, the allowances distributed would be pro-rated across all facilities receiving them.

    The system would be phased in for the first four years (2026-2029). During that period, operators would be required to register and report their emissions and production. Large emitters will start reporting in 2027 for their 2026 emissions and production levels. Reporting for small operators would start in 2029 for their 2028 levels. Operators would need to submit verified annual reports to Environment and Climate Change Canada for their facilities for every calendar year. Reports would be due on June 1 of the following year. The reports would be used to identify which operators will be subject to the pollution cap and have remittance obligations.

    Annual reports would include the GHG emissions attributed to the facility and the production amount by industrial activity. The Quantification Methods for the Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations (the Quantification Methods) would define methods to calculate each source of emissions and would provide certain default values. In addition to the draft regulations, the government is seeking feedback on the Quantification Methods.

    All operators would be required to register and report, but only large operators (producing above an annual threshold of 365,000 barrels of oil equivalent) would have to remit allowances to cover their emissions. Large operators account for approximately 99% of the upstream sector’s emissions. The government would distribute emissions allowances to covered operators annually, before the start of each compliance year. Allowances would be pro-rated across all covered operators’ facilities based on historical production volumes. Allowances would not be able to be used for compliance under other carbon pricing systems, such as the federal Output-Based Pricing System (OBPS). There would be no limits to the number of allowances operators covered under the oil and gas GHG pollution cap could hold, and allowances could be traded among operators.

    Emissions allowances and offsets could be banked for use in a limited number of future years. Decarbonization units would not be tradable or bankable.

    Economic impacts of the proposed Regulations

    Environment and Climate Change Canada undertook an economic cost-benefit analysis of the proposed Regulations. Costs and benefits have been evaluated relative to a baseline that assumes production in the oil and gas sector grows, existing federal and provincial GHG measures remain in place, and the sector achieves the 75% reduction in methane emissions relative to 2012 levels, as a result of the forthcoming oil and gas methane regulations.

    The proposed pollution cap Regulations are estimated to result in net cumulative GHG emission reductions of 13.4 Mt above the baseline of reductions between 2025 and 2030-2032 that will be achieved by existing measures. That incremental reduction is valued at almost $4 billion in avoided global climate change damages. When compared to the costs, modelling showed that the proposed Regulations are estimated to have net benefits of $428 million for Canada.

    Importantly, this multi-million-dollar benefit does not account for a wide range of additional benefits likely to be associated with the proposed Regulations, including:

    • the additional economic activity and jobs associated with post-2032 investments in carbon capture, utilization and storage (CCUS) and other major decarbonization activities;
    • the stimulation of innovation and new low-carbon industries, such as clean hydrogen;
    • the economic and health benefits of reducing air pollution, which will improve the quality of life for many people and reduce the strain on our healthcare systems; and
    • the longer-term competitiveness benefits of a decarbonized Canadian oil and gas sector in a world that continues to take action to fight climate change and adhere to existing international and domestic climate commitments.

    The oil and gas sector directly and indirectly supports a significant workforce, especially in British Columbia, Alberta, Saskatchewan, and Newfoundland and Labrador. Modelling for the 2019 to 2030-2032 period shows that labour expenditure in the sectors covered by the proposed Regulations is expected to grow by 53%, which is only slightly below the 55 % growth in the baseline scenario.

    Additionally, jobs in clean energy will continue to grow. A 2023 Clean Energy Canada report found that Canada will see 700,000 more energy jobs in a carbon-neutral 2050 scenario than we have today. 419,000 of these jobs will be in Alberta, representing three jobs for every individual worker employed in Alberta’s upstream energy sector as of 2022.

    Oil and gas prices correspond to global market demand, and they do not typically reflect the cost of production. As such, the risk of compliance costs passed through from the oil and gas sector to Canadians is very low, and the proposed Regulations are not expected to affect the cost of everyday items such as fuel or groceries.

    Provincial leadership

    British Columbia previously announced it will put in place an oil and gas emissions cap to serve as a backstop to the federal policy. The goal will be to meet BC’s greenhouse gas emission reduction targets and avoid regulatory duplication and administrative burden for the oil and gas sector.

    Alberta, in its Emissions Reduction and Energy Development Plan (2023), communicated its goal to achieve carbon neutrality by 2050 and signalled it would explore options to achieve a 75-80% reduction in methane emissions from conventional oil and gas by 2030. Alberta has had a price on carbon emissions since 2007, making it the first jurisdiction in North America to price carbon. The province’s industrial carbon pricing system, implemented as set out in the Technology Innovation and Emissions Reduction (TIER) Regulation, recycles its proceeds to invest in emissions reduction projects including in the oil and gas sector, such as methane emissions abatement.

    Saskatchewan is a leader in carbon capture and sequestration technology, with several projects aimed at capturing CO2 emissions from oil and gas production. In 2014, the Boundary Dam project became the first power station in the world to successfully use carbon capture and storage technology. The province is also addressing methane emissions, including improving leak detection and repair practices and implementing best practices for gas flaring and venting.

    Newfoundland and Labrador’s offshore oil sector is already one of the lowest-emitting in the country. The newest planned production project—Bay du Nord—was approved with the historic requirement for the project to reach net-zero emissions by 2050. Like all other oil- and gas-producing provinces, NL implements a price on industrial carbon emissions via its provincial output-based pricing system.

    Note on third party reports

    The Government of Canada is aware of third-party reports conducted by Conference Board of Canada, Deloitte and S&P.

    These reports are based on a broad range of assumptions including elements of the previously published Regulatory Framework or, in some cases, other assumptions made by the authors. A common assumption found in the reports was that the oil and gas sector would take limited to no additional action to reduce emissions without the regulations.

    These reports do not reflect an accurate analysis of the current draft regulations. The Government of Canada welcomes continued sharing of analysis to help refine the proposed Regulations.

    MIL OSI Canada News –

  • MIL-OSI USA: $20 Million for Home Resiliency Repairs and Upgrades

    Source: US State of New York

    Governor Kathy Hochul today announced up to $20 million is available for eligible homeowners in flood prone areas to make proactive flood mitigation and energy-efficiency improvements to their homes as part of a new round of funding for the Resilient Retrofits Program. This latest round of funding builds upon the program’s initial $10 million allocation as part of a pilot phase in 2023.

    “We are committed to building resilient communities and ensuring more New Yorkers are protected from extreme weather before it occurs,” Governor Hochul said. “By expanding our successful Resilient Retrofits program, eligible homeowners have access to additional resources that can help keep their families and their homes out of harm’s way.”

    Eligible homeowners earning up to 120 percent of their Area Median Income can apply for up to $50,000, half of which is available as a grant and half as a three percent low-interest loan. Program funds can be used to cover the cost of proactive improvements such as: installing flood vents, a sump pump, or backwater valve/backflow preventer; moving utilities above the flood line; adding insulation; electrifying heating systems; or installing energy efficient appliances or lighting.

    Resilient Retrofits is managed by New York State Homes and Community Renewal’s Office of Resilient Homes and Communities, a permanent office which assumed the portfolio of the Governor’s Office of Storm Recovery in 2022.

    The program has three local program administrators – Home HeadQuarters based in Syracuse, the Center for New York City Neighborhoods based in New York City, and Community Development Corporation of Long Island based in Suffolk County. All program administrators are now accepting applications. Contact information, along with program information, is available on HCR’s website.

    Since Resilient Retrofits launched as a pilot in 2023, more than 200 homeowners have been approved and 60 homes have completed their resiliency upgrades. Applications have been received from homeowners in cities across the State including Syracuse, Buffalo and New York City. The program also served nearly 20 homeowners in the Shinnecock Tribal Nations in the town of Southampton.

    The program complements New York’s efforts to address climate change by achieving economy-wide carbon-neutrality by 2050 and is an example of HCR’s investments in sustainability and resilience including long-term recovery efforts for Hurricane Ida, investing clean energy projects in affordable housing and assisting residents with weatherization of their homes among other initiatives.

    New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “The unpredictability and ferocity of storms caused by climate change requires us to take proactive steps to protect our communities in the face of future serious weather. By expanding this innovative program, we can help hundreds of additional homeowners so they can make the types of improvements that protect their homes for the long-term. We thank Governor Hochul for her holistic approach to preserving the State’s housing stock, strengthening resiliency, mitigating flooding and reducing greenhouse gas emissions in our communities.”

    State Senator Brian Kavanagh said, “I’ve been happy to work closely with Governor Hochul, Commissioner Visnauskas and my colleagues in the Legislature to fund the Resilient Retrofits Program. We need to continue to expand this and other initiatives to ensure that all New Yorkers have access to affordable, safe and sustainable housing, and to take decisive action to mitigate the adverse effects of climate change. Building upon our ongoing energy transition and resiliency work, such as the All-Electric Building Act and the Climate Friendly Homes Fund, this infusion of funds will enable New Yorkers to make critical improvements to reduce flood risk and make their homes more resilient and energy-efficient. I thank Governor Hochul, Commissioner Visnauskas and everyone at HCR involved in implementing this program, my colleagues in the Legislature, the community organizations administering the grants and the participating property owners, for their ongoing commitment to making New York a leader in sustainability. I look forward to working to increase funding for this program in the years to come.”

    Queens Borough President Donovan Richards Jr. said, “Queens knows all too well the devastating impacts that climate change can deal to our communities. From Superstorm Sandy to Hurricane Ida and beyond, Queens residents have had their properties and lives forever altered by flood waters, even in inland neighborhoods. The resilient retrofit program has been a game-changer for residents who want to protect their homes from these dangers. I applaud Governor Hochul for this critical expansion of funding, representing a direct investment in the long-term health of our communities.”

    Home HeadQuarters Founder and CEO Kerry Quaglia said, “Home HeadQuarters is honored to be a part of the New York State Resilient Retrofits Program, a program that delivers vital funding to help homeowners fortify their homes against future flood, rain and climate damage. We know that flooding can happen anytime and anywhere, severely impacting what is often a family’s greatest investment — their home. We are grateful that New York State is responding to our changing climate and helping us support our community’s homeowners.”

    Community Development Long Island President & CEO Gwen O’Shea said, “Long Island ranks among the most vulnerable regions in the country for exposure to the physical and economic risks of climate change; specifically rising sea levels and flooding. CDLI is proud to partner with Governor Hochul and HCR to provide financial support through the Resiliency Retrofit program. These critical funds will allow homeowners to undertake the vital mitigation and sustainability improvements to protect their most precious asset, their home.”

    Center for NYC Neighborhoods CEO and Executive Director Christie Peale said, “We are honored to partner with Governor Hochul and the HCR in advancing the Resilient Retrofits program. This critical funding will empower New York City’s low- and moderate-income homeowners to protect their homes against the impacts of climate change and improve energy efficiency, while supporting community resilience. The Center for NYC Neighborhoods is committed to ensuring that every eligible homeowner has access to these vital resources, strengthening neighborhoods across the City and fostering long-term stability in the face of increasing environmental challenges.”

    New York State’s Nation-Leading Climate Plan
    New York State’s climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues to foster a green economy across all sectors, and ensures that a minimum of 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is advancing a suite of efforts — including the New York Cap-and-Invest program (NYCI) and other complementary policies — to reduce greenhouse gas emissions by 40 percent by 2030 and 85 percent by 2050 from 1990 levels.

    New York is also on a path toward a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030 and economy-wide carbon neutrality by mid-century. A cornerstone of this transition is New York’s unprecedented clean energy investments, including more than $28 billion in 61 large-scale renewable and transmission projects across the State, $6.8 billion to reduce building emissions, $3.3 billion to scale up solar, nearly $3 billion for clean transportation initiatives and over $2 billion in NY Green Bank commitments.

    These and other investments are supporting more than 170,000 jobs in New York’s clean energy sector as of 2022 and an over 3,000 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including the requirement for all new passenger cars and light-duty trucks sold in the State to be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with more than 420 registered and more than 150 certified Climate Smart Communities, over 500 Clean Energy Communities and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the State to help target air pollution and combat climate change.

    MIL OSI USA News –

  • MIL-OSI: Security Bancorp, Inc. Announces Second Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    MCMINNVILLE, Tenn., Nov. 04, 2024 (GLOBE NEWSWIRE) — Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”), today announced its consolidated earnings for the third quarter of its fiscal year ended December 31, 2024.

    Net income for the three months ended September 30, 2024 was $1.0 million, or $2.77 per share, compared to $859,000, or $2.30 per share, for the same quarter last year. For the nine months ended September 30, 2024, the Company’s net income was $2.9 million or $7.84 per share, compared to $2.4 million, or $6.52 per share, for the same period in 2023.

    For the three months ended September 30, 2024, net interest income increased $359,000, or 14.3%, to $2.9 million from $2.5 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net interest income increased $838,000, or 11.4%, to $8.2 million from $7.3 million for the nine months ended September 30, 2023. The increase in net interest income for the three and nine months ended September 30, 2024 was primarily the result of increases in loan balances and interest income on loans that was partially offset by a smaller increase in interest expense. Net interest income after provision for loan losses for the three months ended September 30, 2024 was $2.8 million, an increase of $357,000, or 14.6%, from $2.5 million for the same period in the previous year. For the nine months ended September 30, 2024, net interest income after provision for loan losses increased $857,000, or 12.0%, to $8.0 million from $7.2 million for the same period in 2023. The primary reason for the increase during the three and nine months ended September 30, 2024 was an increase in net interest income.

    Non-interest income for the three months ended September 30, 2024 increased to $635,000 compared to $410,000 for the three months ended September 30, 2023. Non-interest income for the nine months ended September 30, 2024 increased to $1.6 million compared to $1.2 million for the same period of the prior year. The increase in non-interest income was primarily attributed to incentive income related to the Bank’s card processing contracts.

    Non-interest expense for the three months ended September 30, 2024 was $2.0 million, an increase of $341,000, or 20.0%, from $1.7 million for the same period of the prior year. For the nine months ended September 30, 2024, non-interest expense was $5.6 million, an increase of $501,000, or 9.8%, compared to the same period in 2023. The increase for the three and nine months ended September 30, 2024 was primarily due to an increase in consulting fee expense related to renegotiation of the Bank’s data processing contracts.

    The Company’s consolidated assets were $346.6 million at September 30, 2024, compared to $324.4 million at December 31, 2023. The $22.1 million, or 6.8%, increase in assets was a result of an increase loans receivable, net.   Loans receivable, net, increased $26.8 million, or 11.4%, to $262.2 million at September 30, 2024 from $235.4 million at December 31, 2023. The increase in loans receivable was primarily attributable to an increase in residential mortgage and commercial real estate loans.

    For the three months ended September 30, 2024 the provision for loan losses was $65,000 compared to $63,000 for the same period in 2023. The provision for loan losses was $164,000 for the nine months ended September 30, 2024 compared to $183,000 in the comparable period in 2023, a decrease of $19,000.

    Non-performing assets decreased $359,000, or 98.9%, to $4,000 at September 30, 2024 from $363,000 at December 31, 2023. The decrease is attributable to a decline in non-performing loans and the sale of $139,000 of real estate owned. Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company’s allowance for loan losses of $2.6 million at September 30, 2024 was adequate to absorb known and inherent risks in the loan portfolio. At September 30, 2024, the ratio of the allowance for loan losses to non-performing assets was 63,750.0% compared to 664.19% at December 31, 2023.

    Investment and mortgage-backed securities available-for-sale at September 30, 2024 increased $1.3 million, or 2.8%, to $47.1 million from $45.8 million at December 31, 2023. The increase was due to purchases of investment securities that was partially offset by maturities of investment securities and paydowns. There were no investment and mortgage-backed securities held-to-maturity at September 30, 2024 and December 31, 2023.

    Deposits increased $15.1 million, or 5.2%, to $304.9 million at September 30, 2024 from $289.8 million at December 31, 2023. The increase was primarily attributable to increases in certificates of deposit.  

    Stockholders’ equity increased $3.7 million or 11.7% to $34.8 million, or 10.05% of total assets at September 30, 2024 compared to $31.2 million, or 9.6%, of total assets, at December 31, 2023.

    Safe-Harbor Statement

    Certain matters in this News Release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates and projections of future performance. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company’s actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, competitive conditions, regulatory changes, and other risks.

    Contact: Michael D. Griffith
      President & Chief Executive Officer
      (931) 473-4483
    SECURITY BANCORP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS
    (unaudited) (dollars in thousands)
    OPERATING DATA Three months ended
    Sept 30,    		 Nine months ended
    Sept 30,
      2023 2024 2023 2024
    Interest income $4,023 $5,085 $11,326 $14,459
    Interest expense 1,509 2,212 3,978 6,273
    Net interest income 2,514 2,873 7,348 8,186
    Provision for loan losses 63 65 183 164
    Net interest income after provision for loan losses 2,451 2,808 7,165 8,022
    Non-interest income 410 635 1,233 1,555
    Non-interest expense 1,705 2,046 5,110 5,611
    Income before income tax expense 1,156 1,397 3,288 3,966
    Income tax expense 297 359 850 1,027
    Net income $859 $1,038 $2,438 $2,939
    Net Income per share (basic) $2.30 $2.77 $6.52 $7.84
             
    FINANCIAL CONDITION DATA At Sept 30, 2024 At December 31, 2023
    Total assets $346,585 $324,440
    Investments and mortgage- backed securities – available for sale 47,125 45,837
    Loans receivable, net 262,195 235,411
    Deposits 304,897 289,810
    Federal Funds Sold 3,000 -0-
    Federal Home Loan Bank Advances -0- -0-
    Stockholders’ equity 34,829 31,179
    Non-performing assets 4 363
    Non-performing assets to total assets 0.001% 0.11%
    Allowance for loan losses 2,550 2,411
    Allowance for loan losses to total loans receivable 0.96% 1.01%
    Allowance for loan losses to non-performing assets 63,750.0 664.19

    The MIL Network –

  • MIL-OSI: CORRECTION: Alpine Banks of Colorado announces financial results for third quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    GLENWOOD SPRINGS, Colo., Nov. 04, 2024 (GLOBE NEWSWIRE) — Alpine Banks of Colorado (OTCQX: ALPIB) (“Alpine” or the “Company”), the holding company for Alpine Bank (the “Bank”), today announced results (unaudited) for the quarter ended September 30, 2024. The Company reported net income of $13.6 million, or $127.16 per basic Class A common share and $0.85 per basic Class B common share, for third quarter 2024.

    Highlights in third quarter 2024 include:

    • Basic earnings per Class A common share increased 16.8%, or $18.28, during third quarter 2024.
    • Basic earnings per Class A common share increased 16.8%, or $18.30, compared to third quarter 2023.
    • Basic earnings per Class B common share increased 16.8%, or $0.12, during third quarter 2024.
    • Basic earnings per Class B common share increased 16.8%, or $0.12, compared to third quarter 2023.
    • Net interest margin for third quarter 2024 was 2.98%, compared to 2.87% in second quarter 2024, and 2.87% in third quarter 2023.

    “Third quarter 2024 results show a continuation of our improving financial performance,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “Alpine successfully grew customer deposit balances, paid down brokered CDs and decreased the cost of our funding during the third quarter. Both our net interest margin and return on assets saw improvements over the first and second quarters of 2024.”

    Net Income

    Net income for third quarter 2024 and second quarter 2024 was $13.6 million and $11.7 million, respectively. Interest income increased $1.9 million in third quarter 2024 compared to second quarter 2024, primarily due to increases in yields on the loan portfolio and increased balances in due from banks. These increases were slightly offset by decreased yields and volumes in the securities portfolio and decreased rates on due from banks, along with decreased volume in the loan portfolio. Interest expense increased $0.3 million in third quarter 2024 compared to second quarter 2024, primarily due to increased balances in deposit accounts. This increase was partially offset by decreases in costs on, and volume of, the Company’s trust preferred securities. Noninterest income increased $1.3 million in third quarter 2024 compared to second quarter 2024, primarily due to increases in service charges on deposit accounts, and other income. Noninterest expense decreased $0.8 million in third quarter 2024 compared to second quarter 2024, due to decreases in other expenses and salary and employee benefit expenses slightly offset by increases in occupancy expenses and furniture and fixture expenses. A provision for loan losses of $1.2 million was recorded in third quarter 2024 compared to a $0.2 million provision recorded in second quarter 2024.

    Net income for the nine months ended September 30, 2024, and September 30, 2023, was $35.9 million and $46.0 million, respectively. Interest income increased $18.5 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio. Interest expense increased $31.8 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with increases in volume in deposit balances. These increases were partially offset by a decrease in the volume of other borrowings. Noninterest income increased $3.3 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in earnings on bank-owned life insurance, service charges on deposit accounts and other income. Noninterest expense increased $3.0 million in the first nine months of 2024 compared to the first nine months of 2023, due to increases in salary and employee benefit expenses and occupancy expenses. These increases were partially offset by decreases in furniture and fixture expenses and other expenses. Provision for loan losses decreased $0.3 million in the first nine months of 2024 due to loan portfolio declines and a small volume of loan charge-offs, compared to the nine months ended September 30, 2023.

    Net interest margin increased from 2.87% in second quarter 2024 to 2.98% in third quarter 2024. Net interest margin for the nine months ended September 30, 2024, and September 30, 2023, was 2.89% and 3.17%, respectively.

    Assets

    Total assets increased $107.0 million, or 1.7%, to $6.58 billion as of September 30, 2024, compared to June 30, 2024, primarily due to increased cash and due from banks and investment securities balances, partially offset by decreased loans receivable. Total assets increased $110.6 million, or 1.7%, from September 30, 2023, to September 30, 2024. The Alpine Bank Wealth Management* division had assets under management of $1.34 billion on September 30, 2024, compared to $1.09 billion on September 30, 2023, an increase of 23.3%.

    Loans

    Loans outstanding as of September 30, 2024, totaled $4.0 billion. The loan portfolio decreased $36.3 million, or 0.9%, during third quarter 2024 compared to June 30, 2024. This decrease was driven by a $22.9 million decrease in real estate construction loans and a $33.7 million decrease in residential real estate loans, partially offset by a $13.7 million increase in commercial and industrial loans, a $5.0 million increase in commercial real estate loans, a $1.6 million increase in consumer loans, and a $0.1 million increase in other loans.

    Loans outstanding as of September 30, 2024, reflected a decrease of $5.0 million, or 0.1%, compared to loans outstanding of $4.0 billion on September 30, 2023. This decrease was driven by a $102.8 million decrease in real estate construction loans, partially offset by a $54.9 million increase in commercial real estate loans, a $20.8 million increase in residential real estate loans, a $20.0 million increase in commercial and industrial loans, a $1.8 million increase in consumer loans and a $0.3 million increase in other loans.

    Deposits

    Total deposits increased $74.1 million, or 1.3%, to $5.9 billion during third quarter 2024 compared to June 30, 2024, primarily due to a $110.1 million increase in demand deposits and a $49.5 million increase in money market accounts. This increase was partially offset by a $36.4 million decrease in certificate of deposit accounts, a $3.8 million decrease in savings accounts, and a $45.4 million decrease in interest-bearing checking accounts. Brokered certificates of deposit totaled $330.7 million on September 30, 2024, compared to $390.5 million on June 30, 2024. Noninterest-bearing demand accounts comprised 30.7% of all deposits on September 30, 2024, compared to 29.3% on June 30, 2024.

    Total deposits of $5.9 billion on September 30, 2024, reflected an increase of $38.5 million, or 0.7%, compared to total deposits of $5.8 billion on September 30, 2023. This increase was due to a $248.2 million increase in money market accounts, partially offset by a $41.6 million decrease in certificate of deposit accounts, a $111.6 million decrease in interest-bearing checking accounts, a $27.0 million decrease in demand deposits and a $29.5 million decrease in savings accounts. Brokered certificates of deposit totaled $330.7 million on September 30, 2024, compared to $563.7 million on September 30, 2023. Noninterest-bearing demand accounts comprised 30.7% of all deposits on September 30, 2024, compared to 31.4% on September 30, 2023.

    Capital

    The Bank continues to be designated as a “well capitalized” institution as its capital ratios exceed the minimum requirements for this designation. As of September 30, 2024, the Bank’s Tier 1 Leverage Ratio was 9.62%, Tier 1 Risk-Based Capital Ratio was 14.15%, and Total Risk-Based Capital Ratio was 15.30%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.23%, Tier 1 Risk-Based Capital Ratio was 13.59%, and Total Risk-Based Capital Ratio was 15.85% as of September 30, 2024.

    Book value per share on September 30, 2024, was $4,787.58 per Class A common share and $31.92 per Class B common share, an increase of $294.62 per Class A common share and $1.96 per Class B common share from June 30, 2024.

    Each Class A common share is entitled to one vote per share. Except as otherwise provided by the Colorado Business Corporation Act, each Class B common share has no voting rights.

    Dividends

    Each Class B common share has dividend and distribution rights equal to one-one hundred and fiftieth (1/150th) of such rights of one Class A common share. Therefore, each one Class A common share is equivalent to 150 Class B common shares for purposes of the payment of dividends.

    During third quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On October 10, 2024, the Company declared cash dividends of $30.00 per Class A common share and $0.20 per Class B common share payable on October 28, 2024, to shareholders of record on October 21, 2024.

    About Alpine Banks of Colorado

    Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.6 billion, independent, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. Alpine Bank employs 890 people and serves 170,000 customers with personal, business, wealth management*, mortgage, and electronic banking services across Colorado’s Western Slope, mountains and Front Range. Alpine Bank has a five-star rating – meaning it has earned a superior performance classification – from BauerFinancial, an independent organization that analyzes and rates the performance of financial institutions in the United States. Shares of the Class B non-voting common stock of Alpine Banks of Colorado trade under the symbol “ALPIB” on the OTCQX® Best Market. Learn more at www.alpinebank.com.

    *Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank.

    Contacts:  Glen Jammaron   Eric A. Gardey
      President and Vice Chairman   Chief Financial Officer
      Alpine Banks of Colorado     Alpine Banks of Colorado
      2200 Grand Avenue 2200 Grand Avenue
      Glenwood Springs, CO 81601 Glenwood Springs, CO 81601
      (970) 384-3266 (970) 384-3257
         

    A note about forward-looking statements

    This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “reflects,” “believes,” “can,” “would,” “should,” “will,” “estimates,” “continues,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding our evaluation of macro-environment risks, Federal Reserve rate management, and trends reflecting things such as regulatory capital standards and adequacy. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward- looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statement include, but are not limited to:

    • The ability to attract new deposits and loans;
    • Demand for financial services in our market areas;
    • Competitive market-pricing factors;
    • Changes in assumptions underlying the establishment of allowances for loan losses and other estimates;
    • Effects of future economic, business and market conditions, including higher inflation;
    • Adverse effects of public health events, such as the COVID-19 pandemic, including governmental and societal responses;
    • Deterioration in economic conditions that could result in increased loan losses;
    • Actions by competitors and other market participants that could have an adverse impact on expected performance;
    • Risks associated with concentrations in real estate-related loans;
    • Risks inherent in making loans, such as repayment risks and fluctuating collateral values;
    • Market interest rate volatility, including changes to the federal funds rate;
    • Stability of funding sources and continued availability of borrowings;
    • Geopolitical events, including acts of war, international hostilities and terrorist activities;
    • Assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate, or not predictive of actual results;
    • Actions of government regulators, including potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve;
    • Sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs;
    • Any increases in FDIC assessments;
    • Risks associated with potential cybersecurity incidents, data breaches or failures of key information technology systems;
    • The ability to maintain adequate liquidity and regulatory capital, and comply with evolving federal and state banking regulations;
    • Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
    • The ability to recruit and retain key management and staff;
    • The ability to raise capital or incur debt on reasonable terms; and
    • Effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.

    There are many factors that could cause actual results to differ materially from those contemplated by forward-looking statements. Any forward-looking statement made by us in this press release or in any subsequent written or oral statements attributable to the Company are expressly qualified in their entirety by the cautionary statements above. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Key Financial Measures

    The attached tables highlight the Company’s key financial measures for the periods indicated (unaudited).

    Key Financial Measures 09.30.2024

    Consolidated Statements of Income 09.30.2024

    Consolidated Statements of Financial Condition 09.30.2024

    Consolidated Statements of Comprehensive Income 09.30.2024

    Contact:         
    Eric A. Gardey, Chief Financial Officer
    Alpine Banks of Colorado
    (970) 384-3257
    ericgardey@alpinebank.com

    The MIL Network –

  • MIL-OSI: WisdomTree Foreign Exchange Limited Publication of Prospectus

    Source: GlobeNewswire (MIL-OSI)

    WisdomTree Foreign Exchange Limited
    LEI: 213800X2UDCFSIYXXR28
    4 November 2024

    WisdomTree Foreign Exchange Limited
    Publication of Prospectus

    The following prospectus has been approved by the Central Bank of Ireland and the Financial Conduct Authority:

    Prospectus for the issue of Collateralised Currency Securities by WisdomTree Foreign Exchange Limited.

    To view the full document, please paste the following URL into the address bar of your browser.

    https://www.wisdomtree.eu/en-gb/-/media/eu-media-files/key-documents/prospectus/etf-securities/prospectus—etfs-foreign-exchange-limited.pdf

    For further information please contact europesupport@wisdomtree.com

    The MIL Network –

  • MIL-OSI: Digital Media Solutions, Inc. Receives Court Approval for Asset Sales

    Source: GlobeNewswire (MIL-OSI)

    CLEARWATER, Fla., Nov. 04, 2024 (GLOBE NEWSWIRE) — Digital Media Solutions, Inc., (“DMS” or the “Company”), a leading provider of technology-enabled digital performance advertising solutions connecting consumers and advertisers, today announced that, following a competitive auction process, the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) has approved the sale of substantially all of the assets of the Company’s core business to its existing lenders, including a consortium of leading financial institutions. The Court also approved the sale of the Company’s ClickDealer subsidiaries to iMonMedia, a leading global performance marketing company.

    “We are pleased to have received the Court’s approval of these value-maximizing transactions, which pave the way for us to complete the court-supervised sale process and execute our ownership transition,” said Joe Marinucci, Co-Founder and CEO of DMS. “With a stronger financial foundation and new owners who share our conviction in our go-forward prospects, our core business is well positioned to continue its growth trajectory and capitalize on the significant opportunities we see ahead. We are also glad to have found a new home for our ClickDealer business and the team that supports it with iMonMedia, a leading player in the digital marketing and advertising space who will take ClickDealer to new heights.”

    Marinucci continued, “The progress we have made in this process is a true testament to the hard work and dedication of our employees, and I thank them all for their unwavering commitment to DMS. We look forward to closing the transactions in the coming weeks and continuing to innovate and serve our loyal clients.”

    The transactions are expected to close in the fourth quarter of 2024. DMS is continuing to operate in the ordinary course across its businesses, including its ClickDealer subsidiaries, providing innovative solutions, vertical expertise and outstanding support to its clients and vendors.

    Additional Information

    Additional information is available at AdvancingDMS.com. Court filings and other information related to the sale process are available on a separate website administered by the Company’s claims agent, Omni Agent Solutions, at https://omniagentsolutions.com/DMS; by calling Omni representatives toll-free at (866) 680-8083, or (818) 574-6886 for calls originating outside of the U.S. or Canada; or by emailing DMS@OmniAgnt.com.

    Advisors

    Kirkland & Ellis LLP and Porter Hedges LLP are serving as legal counsel to DMS, Portage Point Partners is serving as restructuring advisor and Houlihan Lokey Capital, Inc. is serving as investment banker.

    About DMS

    Digital Media Solutions, Inc. (DMS) drives better business results by connecting high-intent consumers with advertisers across our core verticals; Insurance (auto, home, health), Education and Consumer/E-Commerce. Our innovative solutions help consumers shop and save, while helping our advertisers achieve above average return on ad spend. Learn more at https://digitalmediasolutions.com.

    Forward-Looking Statements

    This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and its subsidiaries and certain plans and objectives with respect thereto. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as “initiate,” “anticipate,” “target,” “expect,” “enable,” “estimate,” “intend,” “plan,” “goal,” “believe,” “hope,” “aims,” “continue,” “will,” “may,” “should,” “would,” “could” or other words of similar meaning. These statements are based on assumptions and assessments made by the Company and its perception of historical trends, current conditions, future developments and other factors. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this press release could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements, including related to any sale process and the Chapter 11 process. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this press release. The Company does not assume any obligation to update or correct the information contained in this press release (whether as a result of new information, future events or otherwise), except as may be required by applicable law.

    There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market, supply chain and regulatory forces, future exchange and interest rates, changes in tax rates and any future business combinations or dispositions, our ability to negotiate and confirm a sale of substantially all of our assets under Section 363 of the Bankruptcy Code (or any other plan of reorganization), uncertainties and costs related to the completion of any sale process (implemented through the Chapter 11 process) and the Chapter 11 process more generally, including, among others, potential adverse effects of the Chapter 11 process on the Company’s liquidity and results of operations, including with respect to its relationships with its customers, vendors and partners, suppliers and other third parties; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties inherent in the Chapter 11 process; the impact of any cost reduction initiatives; any other legal or regulatory proceedings; the Company’s ability to obtain operating capital, including complying with the restrictions imposed by the terms and conditions of any debtor-in-possession financing, such as the financing mentioned herein; the length of time that the Company will operate under Chapter 11 protection; the timing of any emergence from the Chapter 11 process; and the risk that any plan of reorganization resulting therefrom may not be confirmed or implemented at all. Please see the plan of reorganization and related disclosure statement (as may be amended, modified or supplemented) that may be filed with the Court for additional considerations and risk factors associated with the Company’s Chapter 11 process.

    Nothing in this press release is intended as a profit forecast or estimate for any period and no statement in this press release should be interpreted to mean that the financial performance for the Company, including after the completion of any sale process, for the current or future financial years would necessarily match or exceed its historical results.

    Further, this press release is not intended to and does not constitute and should not be construed as, considered a part of, or relied on in connection with any information or offering memorandum, security purchase agreement, or offer, invitation or recommendation to underwrite, buy, subscribe for, otherwise acquire, or sell any securities or other financial instruments or interests or any other transaction.

    Contacts

    Investor Relations
    investors@dmsgroup.com

    Media
    Aaron Palash / Aura Reinhard / Maeve Barbour / Jenna Shinderman
    Joele Frank Wilkinson Brimmer Katcher
    212-355-4449

    The MIL Network –

  • MIL-OSI: RYVYL to Announce Third Quarter 2024 Financial Results on Thursday, November 14, 2024

    Source: GlobeNewswire (MIL-OSI)

    SANDIEGO, CA, Nov. 04, 2024 (GLOBE NEWSWIRE) — RYVYL Inc. (NASDAQ: RVYL) (“RYVYL” or the “Company”), a leading innovator of payment transaction solutions leveraging proprietary blockchain ledger and electronic payment technology for diverse international markets, plans to report financial results for the third quarter of 2024 on Thursday, November 14, 2024, after the market close.

    RYVYL management will host a conference call at 4:30 p.m. Eastern Time on Thursday, November 14, 2024, to discuss the Company’s financial results for the third quarter ended September 30, 2024, provide a corporate update and end with a question-and-answer session. To participate, please use the following information and submit your questions in writing prior to the call at RYVYL@lhai.com.

    Q3 2024 Conference Call and Webcast
    Date: Thursday, November 14, 2024
    Time: 4:30 p.m. Eastern Time
    US Dial In: 1- 877-407-4018
    International Dial In: 1-201-689-8471
    Webcast: Q3 2024 Webcast
    Call me: Link

    Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me link for instant telephone access to the event. The Call me link will be made active 15 minutes prior to scheduled start time.

    A replay of the call will be available through January 14, 2025, by calling 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally and entering access ID 13749031. An archived version of the webcast will also be available for 90 days on the IR section of the RYVYL website or by clicking the webcast link above.

    About RYVYL

    RYVYL Inc. (NASDAQ: RVYL) was born from a passion for empowering a new way to conduct business-to-business, consumer-to-business, and peer-to-peer payment transactions around the globe. By leveraging proprietary blockchain ledger and electronic payment technology for diverse international markets, RYVYL is a leading innovator of payment transaction solutions reinventing the future of financial transactions. Since its founding as GreenBox POS in 2017 in San Diego, RYVYL has developed applications enabling an end-to-end suite of turnkey financial products with enhanced security and data privacy, world-class identity theft protection, and rapid speed to settlement. As a result, the platform can log immense volumes of immutable transactional records at the speed of the internet for first-tier partners, merchants, and consumers around the globe. www.ryvyl.com

    Cautionary Note Regarding Forward-Looking Statements

    This press release includes information that constitutes 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 forward-looking statements are based on the Company’s current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the timing and expectation of revenues from the license described herein and are characterized by future or conditional words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee’s ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries – particularly industries with heightened cash reporting obligations and restrictions – as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company’s periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws.

    IR Contact: David Barnard, LHA Investor Relations, 415-433-3777, RYVYL@lhai.com

    The MIL Network –

  • MIL-OSI Economics: ONLINE EVENT | Latin America – Spain Railway Dialogues ‘Rails towards a sustainable future”

    Source: CAF Development Bank of Latin America

    Under the title ‘Rails Towards a Sustainable Future’, this event aims to highlight the tremendous potential of rail as a mode of land transport capable of ensuring the mobility of large volumes of people and goods, boosting the economic, environmental, and social sustainability essential for the future. The Railway Dialogues will take place on November 13 and 14 at the La Moneda Cultural Center, gathering experts, government representatives, private companies, and financial institutions involved in the railway sector.

    The first day is designed to foster knowledge sharing and inter-institutional collaboration, creating an ideal setting for learning from expert insights, discovering best practices, and building valuable connections within the railway industry. Authorities from countries such as Chile, Brazil, Panama, Uruguay, and Spain will participate.

    The second day, organized by EFE as part of its 140th anniversary celebration, will address the challenges and opportunities in Chile’s railway sector, including a panel that brings in international railway perspectives with contributions from experts, authorities, and key institutions in the field.

    To mark this anniversary, the La Moneda Cultural Center will also host the exhibition ‘The Train Runs Along the Line‘, which explores the present and future of railways in Chile.

    This event wraps up a week of railway-related activities in Santiago, Chile. In the days leading up to it, the 60th Annual Assembly of the Latin American Railway Association (ALAF) and the Regional Assembly of the International Union of Railways (UIC) will take place.

    Date: November 13 and 14
    Time: 9:30 a.m. (Chile)*
    *The event will be streamed on this microsite

    MIL OSI Economics –

  • MIL-OSI Banking: Fannie Mae Announces the Results of its Thirty-third Reperforming Loan Sale Transaction

    Source: Fannie Mae

    WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today announced the results of its thirty-third reperforming loan sale transaction. The deal, announced on October 8, 2024, included the sale of 8,678 loans totaling $1,424,118,043 in unpaid principal balance (UPB), offered in three pools. The winning bidder for Pool 1 and Pool 2 was Pacific Investment Management Company LLC, and for Pool 3 was JP Morgan Mortgage Acquisitions Corp. The transaction is expected to close by December 20, 2024. The pools were marketed with Citigroup Global Markets Inc. as advisor.

    The loan pool awarded in this most recent transaction includes:

    • Pool 1: 2,924 loans with an aggregate UPB of $510,578,698; average loan size of $174,617; weighted average note rate of 3.82%; and weighted average broker’s price opinion (BPO) loan-to-value ratio of 47%.
    • Pool 2: 3,311 loans with an aggregate UPB of $524,573,434; average loan size of $158,434; weighted average note rate of 4.03%; and weighted average broker’s price opinion (BPO) loan-to-value ratio of 48%.
    • Pool 3: 2,443 loans with an aggregate UPB of $388,965,911; average loan size of $159,217; weighted average note rate of 3.96%; and weighted average broker’s price opinion (BPO) loan-to-value ratio of 49%.

    The cover bid, which is the second highest bid for the pool, was 83.55% of UPB (32.26% of BPO) for Pool 1, 84.375% of UPB (31.73% of BPO) for Pool 2, and 82.09% of UPB (31.98% of BPO) for Pool 3.

    Reperforming loans are loans that have been or are currently delinquent but have reperformed for a period of time. The terms of Fannie Mae’s reperforming loan sale require the buyer to offer loss mitigation options to any borrower who may re-default within five years following the closing of the reperforming loan sale. All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including loan modifications. In addition, purchasers must offer delinquent borrowers a waterfall of loss mitigation options, including loan modifications, which may include principal forgiveness or payment deferral prior to initiating foreclosure on any loan.

    Interested bidders can register for ongoing announcements, training, and other information here. Fannie Mae will also post information about specific pools available for purchase on that page.

    MIL OSI Global Banks –

  • MIL-OSI Australia: Tables – Tax compliance of Australian corporations

    Source: Australian Department of Revenue

    Demographics of large corporate groups – data table

    The table details the data used in figure, the contribution to tax revenue from 2017–18 to 2022–23 for large corporate groups.

    Table: the contribution to tax revenue from 2017–18 to 2022–23 for large corporate groups

    $b Income tax payable

    2017–18

    2018–19

    2019–20

    2020–21

    2021–22

    2022–23

    Large Diversified Miners

    8.0

    10.2

    11.5

    14.9

    23.1

    21.0

    Oil & Gas

    1.2

    1.9

    1.3

    0.6

    1.4

    12.0

    Other Mining, Energy and Water

    6.9

    10.8

    12.1

    16.6

    18.0

    22.3

    Major Banks

    11.4

    10.1

    9.2

    8.4

    8.4

    9.9

    Other Financial Services

    6.5

    6.8

    6.4

    7.4

    8.7

    7.3

    Wholesale, Retail and Services

    13.6

    12.6

    12.5

    15.1

    17.3

    18.4

    Manufacturing, Construction and Agriculture

    3.9

    3.8

    3.7

    4.0

    5.6

    4.8

    Total large corporate groups income tax reported

    51.4

    56.2

    56.6

    67.1

    82.6

    95.6

    Macro-level analysis is giving us confidence – data tables

    The table below details the data used in figure, indexed income tax payable and pre-tax profits of ASX-listed companies.

    Table: Indexed income tax payable and pre-tax profits of ASX-listed companies

    Year

    Income tax payable ($m)

    Pre-tax profit ($m)

    Indexed income tax payable

    Indexed pre-tax profit

    2018

    28,549

    157,674

    100.0

    100.0

    2019

    29,938

    164,157

    104.9

    104.1

    2020

    31,080

    146,335

    108.9

    92.8

    2021

    37,877

    190,778

    132.7

    121.0

    2022

    43,353

    246,988

    151.9

    156.6

    The table below details the data used in figure, tax-to-income ratios of Australian public and majority foreign-owned large corporate groups.

    Table: Tax-to-income ratios of Australian public and majority foreign-owned large corporate groups from 2017 to 2023

    Year

    Majority Foreign-owned

    Australian – Public

    Australian – Public (excluding largest 10)

    Private

    2017

    1.57%

    3.19%

    1.80%

    1.44%

    2018

    1.82%

    3.25%

    1.92%

    1.81%

    2019

    1.90%

    3.44%

    1.91%

    1.44%

    2020

    1.72%

    3.47%

    1.72%

    1.51%

    2021

    1.63%

    4.13%

    1.76%

    1.79%

    2022

    2.32%

    4.29%

    2.15%

    1.72%

    2023

    3.00%

    3.72%

    2.37%

    1.48%

    The OECD four pillars of compliance – data table

    The table details the data used in figure 2, culpability penalty rates applied to large corporate groups, 2018–19 to 2023–24.

    Table: Culpability penalty rates applied to large corporate groups from 2018–19 to 2023–24

    Culpability penalty

    2018–19

    2019–20

    2020–21

    2021–22

    2022–23

    2023–24

    0 rate

    0.4

    0.7

    0.3

    0.3

    0.7

    0.4

    10% rate

    0.1

    0.1

    0.3

    0.3

    0.0

    0.3

    25% rate

    0.3

    0.1

    0.4

    0.3

    0.2

    0.3

    50% rate

    0.2

    0.1

    0.1

    0.1

    0.1

    0.0

    75% rate

    0.0

    0.0

    0.0

    0.0

    0.0

    0.0

    MIL OSI News –

  • MIL-OSI Security: Freddie “Bankroll Freddie” Gladney, III Sentenced to More Than 12 Years in Federal Prison Following Guilty Verdict at Jury Trial on Firearm and Drug Trafficking Charges

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

          LITTLE ROCK—Freddie “Bankroll Freddie” Gladney, III, will spend the next 150 months in federal prison after being convicted of multiple narcotics offenses, including a firearms offense, which involved a conspiracy to distribute large amounts of marijuana in and around central Arkansas. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge James M. Moody, Jr.

          Following a four-day trial, Gladney, 30, of Helena, was convicted by a federal jury on April 12, 2024. The jury found Gladney guilty of one count of conspiracy to distribute and possess with intent to distribute marijuana, one count of possession with intent to distribute marijuana, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of using a telephone in furtherance of a drug trafficking crime.

          In addition to the 150 months’ total imprisonment, which is more than twelve years, Judge Moody sentenced Gladney to three years supervised release. There is no parole in the federal system. Gladney was also ordered to pay a $242,000 money judgment as part of his conviction. 

          Gladney was indicted by a federal grand jury on May 3, 2023, in a 32-count superseding indictment that charged him with numerous offenses related to a conspiracy that was investigated by the Federal Bureau of Investigation (FBI).

          Two FBI operations, each focused on a rival gang, were created to address violence and drug trafficking in the corridor between Pine Bluff and Little Rock. The investigations focused on rival gangs responsible for violence throughout central Arkansas, with one operation focused on the EBK or Every Body Killas gang and resulting in the indictment of 35 defendants.

          An investigation revealed that on April 14, 2022, an Arkansas State Police trooper observed a black truck speeding and conducted a traffic stop in Marion. The trooper noted the odor of marijuana coming from inside the vehicle and asked Gladney to exit the vehicle. Gladney began to exit the vehicle but then reentered and started reaching for something in the vehicle. Because Gladney refused to exit the vehicle, the trooper was forced to remove him.

          During a search of Gladney’s vehicle, law enforcement officers located in the passenger seat near the area where Gladney had been reaching, a Romarm/Cugie Model Micro Draco 7.62x39mm caliber firearm and a Polymer 80 Model PF940C, 9mm privately made firearm (also known as a “ghost gun”). Additionally, during a search of the back seat of the vehicle, law enforcement officers located a duffle bag containing 21.4 pounds of high-grade marijuana and $33,662, which was located in the center console along with seven magazines, five of which were extended and fully loaded.

          At sentencing, Gladney received a 4-level increase for being an organizer or leader of criminal activity that involved five or more participants. Gladney received a 2-level increase in his guideline range for obstruction of justice related to a May 25, 2021, wiretap call in which he instructed a codefendant to remove guns and scales used for weighing illegal drugs from his Helena residence in anticipation that it would be searched by law enforcement. 

    GLADNEY III:           So where, what you got in the house in Helena?

    CODEFENDANT:     I got everything out of there.

    GLADNEY III:           You got everything out of there already?

    CODEFENDANT:     Yeah.

    GLADNEY III:           Scales and everything?

    CODEFENDANT:     Naw, I gotta, gotta, lemme call them. Send em back in to get that. I gotta find out where all they at.

    GLADNEY III:           Scales and shit. Get everything out the house. Any guns, anything.

    CODEFENDANT:     Alright, let me..

    GLADNEY III:           Where that MAK-90 at?

    CODEFENDANT:     It’s not there.

    GLADNEY III:           Alright get everything else out that house before they go search that b***h.

    CODEFENDANT:     Alright.

          Judge Moody cited the ghost gun in increasing Gladney’s sentence 2.5 years above the guidelines range. Judge Moody noted that based on trial testimony, it was apparent that Gladney’s ghost gun, which did not have a back plate, was either ready to receive a “switch,” or had recently had a “switch” on it, that would turn the ghost gun from a semi-automatic firearm to a fully-automatic firearm. Judge Moody also recognized that Gladney was on probation from a drug and gun case in Memphis at the time he was intercepted on the wiretap in this case. 

          This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

          The investigation was conducted by the FBI with assistance from Arkansas State Police, Arkansas Department of Community Corrections, Little Rock Police Department, North Little Rock Police Department, Pine Bluff Police Department, and Jonesboro Police Department. FBI’s GETROCK Task Force was formed in 2017 in response to the escalation in gang and gun violence in Little Rock. The unit’s investigations and operations are coordinated out of FBI Little Rock’s field office, and GETROCK continues to serve as the clearinghouse for gang-related law enforcement activity in Central Arkansas. Additional support was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Homeland Security Investigations; United States Postal Inspection Service; Arkansas National Guard Counterdrug Joint Task Force; and the Arkansas State Crime Laboratory. These cases are being prosecuted by Assistant United States Attorneys Julie Peters, Amanda Fields, and Reese Lancaster.

    # # #

    Additional information about the office of the

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

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

    MIL Security OSI –

  • MIL-OSI: Christopher Campise Named Chief Information Officer of Five Star Bank

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, N.Y., Nov. 04, 2024 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI), parent company of Five Star Bank (“Five Star” or the “Bank”) and Courier Capital, LLC, announced that Christopher Campise has joined as Senior Vice President, Chief Information Officer of the Bank.

    In this role, Mr. Campise will lead the development and implementation of the Bank’s technology strategies, systems, and processes, while further enhancing the information technology infrastructure to support the organization’s long-term objectives. Mr. Campise will report to W. Jack Plants II, Executive Vice President, Chief Financial Officer and Treasurer.

    “Chris brings tremendous experience to Five Star Bank in terms of his proven ability to lead and execute IT strategy that advances business goals and objectives,” said Mr. Plants. “His varied experience, including in other highly regulated industries, will serve him well here and we are pleased to be benefitting from his fresh perspective and results-driven approach.”

    Mr. Campise joins Five Star from Delaware North Companies, where he served as Senior Director of Enterprise Architecture since 2021. Prior to that, Chris helped lead enterprise architecture during his seven year tenure at Highmark Blue Cross Blue Shield and spent nine years with the University at Buffalo. Earlier in his career, he worked at several Wester New York technology and software companies.

    Mr. Campise, who is based at Five Star Bank Centre in Amherst, N.Y., previously served as a board member of Habitat for Humanity Buffalo and the Gartner Advisory Board. He is also a past volunteer with Mission: Ignite and InfoTech WNY. Mr. Campise earned his B.S. in Computer Science from Canisius College.

    About Financial Institutions, Inc. and Five Star Bank
    Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.2 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, financial planning and consulting services to individuals and families, businesses, institutions, non-profits and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

    For additional information contact:
    Kate Croft
    Director, Investor and External Relations
    716-817-5159
    klcroft@five-starbank.com

    The MIL Network –

  • MIL-OSI: First Pacific Bancorp Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    WHITTIER, Calif., Nov. 04, 2024 (GLOBE NEWSWIRE) — First Pacific Bancorp (the “Company”) (OTC Pink: FPBC), the holding company for First Pacific Bank (the “Bank”), today reported consolidated results for the third quarter ending September 30, 2024, underscored by the sixth consecutive quarter of profitability.

    Highlights for the third quarter of 2024 include:

    • Total assets ended Q3 2024 at $434 million, up $14 million from $420 million at year end 2023.
    • Total deposits ended the third quarter of 2024 at $342 million, up $9 million since year end 2023.
    • Total loans ended the third quarter of 2024 at $268 million, down $7 million from year end 2023.
    • Asset quality remains excellent with minimal levels of classified or non-performing assets.
    • The Bank ended the third quarter with a strong capital position, with a leverage capital ratio of 8.8% and a total risk-based capital ratio of 12.8%.
    • As of September 30, 2024, cash and cash equivalents totaled $49 million, including funds invested overnight, up $27 million since year end 2023.
    • Unused borrowing capacity from credit facilities in place on September 30, 2024, totaled $143 million.

    For the third quarter ending September 30, 2024, the Company realized a pre-tax, pre-provision profit of $345 thousand, compared to a pre-tax, pre-provision profit of $272 thousand in Q2 2024. Net income for the third quarter of 2024 was $249 thousand, up from $198 thousand in Q2 2024. For the nine months ending September 30, 2024, the Company reported $608 thousand in net income, up from a net loss of $219 thousand reported for the nine months ending September 30, 2023.     

    Asset quality remains excellent with minimal non-performing assets and the allowance for credit losses is 1.16% of total loans.  

    “We are encouraged by our results, as evidenced by six consecutive quarters of profitability,” said Joe Matranga, Chairman of the Board of Directors. “We continue to maintain a solid capital, liquidity, and financial standing and are well-positioned to execute our strategy and deliver sustainable, long-term value for our stakeholders.”

    “Our third-quarter results reflect a strong and consistent period of profitability, driven by increased core deposit growth, stable credit quality, and a disciplined approach to expense management,” said Nathan Rogge, President and Chief Executive Officer. “We are pleased with our performance and continue to look for opportunities to expand our customer base through strategic investments in technology and innovation that aim to enhance the customer experience.”

    ABOUT FIRST PACIFIC BANK

    First Pacific Bank is a wholly owned subsidiary of First Pacific Bancorp (OTC Pink: FPBC) and is a growing community bank catering to individuals, professionals, and small-to-medium sized businesses throughout Southern California. Since opening in 2006, the Bank has offered a personalized approach, access to decision makers, a broad range of solutions, and a commitment to delivering an exceptional customer experience. First Pacific Bank operates locations in Los Angeles County, Orange County, San Diego County, and the Inland Empire. For more information, visit firstpacbank.com or call 888.BNK.AT.FPB.

    FORWARD-LOOKING STATEMENTS

    This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and First Pacific Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements relate to, among other things, our business plan, and strategies, and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and similar expressions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause such differences include, but are not limited to: successfully realizing the benefits of our business strategy and plans,; changes in general economic and financial market conditions, either nationally or locally, in areas in which First Pacific Bank conducts its operations; effects of inflation and changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; impact of any natural disasters, including earthquakes; effect of governmental supervision and regulation, including any regulatory or other enforcement actions; legislation or regulatory changes which adversely affect First Pacific Bank’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events, or circumstances after the date of such statements except as required by law.  

    Contacts

    — Summary Financial Tables Follow —

    First Pacific Bancorp          
    Consolidated Balance Sheets          
    (Unaudited)          
      Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
    ASSETS          
    Cash and due from banks $ 23,584,084   $ 4,671,483   $ 7,317,500   $ 4,308,149   $ 4,240,871  
    Fed funds sold & int-bearing balances   25,520,000     37,860,000     37,575,000     18,060,000     20,410,000  
    Total cash and cash equivalents   49,104,084     42,531,483     44,892,500     22,368,149     24,650,871  
               
    Debt securities (AFS)   3,041,852     3,077,666     5,138,340     5,257,049     5,266,653  
    Debt securities (HTM)   101,260,391     102,202,926     103,474,749     104,343,133     105,447,814  
    Total debt securities   104,302,243     105,280,592     108,613,089     109,600,182     110,714,467  
               
    Construction & land development   23,067,204     24,651,513     25,480,398     27,070,749     24,721,763  
    1-4 Family residential   58,082,570     68,588,393     68,521,663     66,567,165     64,925,441  
    Multifamily residential   28,966,811     26,800,829     26,947,419     27,128,177     28,484,194  
    Nonfarm, nonresidential real estate   99,715,860     94,643,169     97,893,840     99,627,812     99,859,450  
    Commercial & industrial   57,342,017     53,504,969     54,785,564     53,938,659     55,374,111  
    Consumer & Other   780,639     1,831,036     1,123,918     865,849     569,736  
    Total loans   267,955,101     270,019,909     274,752,802     275,198,411     273,934,695  
    Allowance for loan losses   (3,109,975 )   (3,109,975 )   (3,109,975 )   (3,109,975 )   (2,974,427 )
    Total loans, net   264,845,126     266,909,934     271,642,827     272,088,436     270,960,268  
               
    Premises, equipment, and ROU net   1,452,886     1,714,833     1,992,588     2,268,671     1,850,187  
    Goodwill, core deposit & other intangibles   1,287,129     1,298,084     1,313,367     1,328,651     1,343,934  
    Bank owned life insurance   5,257,550     5,227,763     5,198,654     5,170,521     5,142,322  
    Accrued interest and other assets   7,505,380     7,476,554     7,415,609     7,392,301     7,616,948  
               
    Total Assets $ 433,754,398   $ 430,439,243   $ 441,068,634   $ 420,216,911   $ 422,278,997  
               
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Deposits:          
    Noninterest-bearing demand $ 129,473,091   $ 144,240,187   $ 133,945,262   $ 121,348,095   $ 130,982,957  
    Interest-bearing transaction accounts   24,660,000     24,797,108     28,166,207     34,716,150     47,304,776  
    Money market and savings   143,270,628     143,497,864     148,732,230     139,011,862     131,505,430  
    Time deposits   44,388,137     41,060,590     38,662,227     38,235,413     22,504,646  
    Total deposits   341,791,856     353,595,749     349,505,926     333,311,520     332,297,809  
               
    Borrowings   50,000,000     35,000,000     50,000,000     45,000,000     50,000,000  
    Accrued interest and other liabilities   3,430,132     3,781,444     3,936,909     4,530,208     2,934,831  
    Total liabilities   395,221,988     392,377,193     403,442,835     382,841,728     385,232,640  
               
    Shareholders’ Equity:          
    Capital stock and APIC   37,117,627     36,970,386     36,788,606     36,699,786     36,508,987  
    Retained earnings   2,151,305     1,902,788     1,705,174     1,543,264     1,487,800  
    Accum other comprehensive income   (736,522 )   (811,124 )   (867,981 )   (867,867 )   (950,430 )
    Total shareholders’ equity   38,532,410     38,062,050     37,625,799     37,375,183     37,046,357  
               
    Total Liabilities and Shareholders’ Equity $ 433,754,398   $ 430,439,243   $ 441,068,634   $ 420,216,911   $ 422,278,997  
               
    First Pacific Bancorp          
    Consolidated Income Statements – Quarterly          
    (Unaudited)          
               
      Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
    INTEREST INCOME          
    Loans, including fees $4,817,174 $4,655,844 $4,700,535 $4,653,303   $4,458,616  
    Debt securities 499,268 514,613 543,857 544,330   585,047  
    Fed funds & int-bearing balances 450,166 573,022 410,685 258,178   271,266  
    Total interest income 5,766,608 5,743,479 5,655,077 5,455,811   5,314,929  
               
    INTEREST EXPENSE          
    Deposits 1,790,578 1,687,121 1,746,032 1,542,541   1,408,092  
    Borrowings 444,250 524,599 507,390 705,324   567,115  
    Total interest expense 2,234,828 2,211,720 2,253,422 2,247,865   1,975,207  
               
    Net interest income 3,531,780 3,531,759 3,401,655 3,207,946   3,339,722  
               
    Provision for credit losses – – – 101,538   191,428  
               
    Net interest income after provision 3,531,780 3,531,759 3,401,655 3,106,408   3,148,294  
               
    NONINTEREST INCOME          
    Service charges, fees and other income 106,628 96,460 108,365 108,769   122,367  
    Sublease income 53,975 52,970 53,872 53,872   53,384  
    Gains (losses) on sale of assets 15,335 – – (12,982 ) 101,844  
    Gains on early payoff of debt – 144,325 – –   123,077  
    Total noninterest income 175,938 293,755 162,237 149,659   400,672  
               
    NONINTEREST EXPENSE          
    Salaries and benefits 2,154,290 2,182,674 2,178,486 1,954,029   2,311,113  
    Occupancy and equipment 374,069 363,695 368,816 384,088   377,795  
    Other expense 834,281 1,007,247 794,158 894,440   823,677  
    Total noninterest expense 3,362,640 3,553,616 3,341,460 3,232,557   3,512,585  
               
    Income before income tax expense 345,078 271,898 222,432 23,510   36,381  
               
    Income tax expense (benefit) 96,563 74,281 60,524 (31,955 ) (15,550 )
               
    Net Income (Loss) $248,515 $197,617 $161,908 $55,465   $51,931  
               
    Earnings per share basic (QTR) $0.06 $0.05 $0.04 $0.01   $0.01  
    Weighted average shares outstanding (QTR) 4,288,851 4,283,351 4,281,653 4,231,841   4,174,529  
               
    First Pacific Bancorp    
    Consolidated Income Statements – Year-to-Date    
    (Unaudited)    
         
      Sep 30, 2024 Sep 30, 2023
    INTEREST INCOME    
    Loans, including fees $14,173,553 $12,051,909  
    Investment securities 1,557,738 1,735,019  
    Fed funds & int-bearing balances 1,433,873 742,649  
    Total interest income 17,165,164 14,529,577  
         
    INTEREST EXPENSE    
    Deposits 5,223,731 3,201,945  
    Borrowings 1,476,239 1,735,403  
    Total interest expense 6,699,970 4,937,348  
         
    Net interest income 10,465,194 9,592,229  
         
    Provision for credit losses – 804,428  
         
    Net interest income after provision 10,465,194 8,787,801  
         
    NONINTEREST INCOME    
    Service charges, fees and other income 311,453 347,054  
    Sublease income 160,817 158,202  
    Gains (losses) on sale of assets 15,335 142,075  
    Gains on early payoff of debt 144,325 123,077  
    Total noninterest income 631,930 770,408  
         
    NON INTEREST EXPENSE    
    Salaries and benefits 6,515,450 6,604,574  
    Occupancy and equipment 1,106,580 1,086,189  
    Other expense 2,635,686 2,230,137  
    Total noninterest expense 10,257,716 9,920,900  
         
    Income before income tax expense 839,408 (362,691 )
         
    Income tax expense (benefit) 231,368 (143,307 )
         
    Net Income (loss) $608,040 ($219,384 )
         
    Earnings (loss) per share basic (YTD) $0.14 ($0.06 )
    Weighted average shares outstanding (YTD) 4,284,634 3,912,161  
    First Pacific Bancorp            
    Quarterly Financial Highlights            
    (Unaudited)            
        Quarterly
        2024 2024 2024 2023 2023
    ($$ in thousands except per share data)   3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
    EARNINGS            
    Net interest income $ 3,532   3,532   3,402   3,208   3,340  
    Provision for loan losses $ 0   0   0   102   191  
    Noninterest income $ 176   294   162   150   401  
    Noninterest expense $ 3,363   3,554   3,341   3,233   3,513  
    Income tax expense $ 97   74   61   (32 ) (16 )
    Net income $ 249   198   162   55   52  
                 
    Basic earnings per share $ 0.06   0.05   0.04   0.01   0.01  
    Weighted average shares outstanding   4,288,851   4,283,351   4,281,653   4,231,841   4,174,529  
    Ending shares outstanding   4,291,927   4,283,351   4,283,351   4,231,841   4,231,841  
                 
    PERFORMANCE RATIOS            
    Return on average assets   0.23 % 0.18 % 0.15 % 0.05 % 0.05 %
    Return on average common equity   2.58 % 2.10 % 1.73 % 0.59 % 0.56 %
    Yield on loans   6.98 % 6.97 % 6.84 % 6.69 % 6.60 %
    Yield on earning assets   5.58 % 5.52 % 5.49 % 5.35 % 5.26 %
    Cost of deposits   2.05 % 1.96 % 2.05 % 1.89 % 1.70 %
    Cost of funding   2.32 % 2.28 % 2.35 % 2.37 % 2.09 %
    Net interest margin   3.42 % 3.40 % 3.31 % 3.15 % 3.30 %
    Efficiency ratio   90.7 % 92.9 % 93.8 % 96.3 % 93.9 %
                 
    CAPITAL            
    Tangible equity to tangible assets   8.61 % 8.57 % 8.26 % 8.61 % 8.48 %
    Book value (BV) per common share $ 8.98   8.89   8.78   8.83   8.75  
    Tangible BV per common share $ 8.68   8.58   8.48   8.52   8.44  
                 
    ASSET QUALITY            
    Net loan charge-offs (recoveries) $ 0   0   0   0   0  
    Allowance for loan losses (ALLL) $ 3,110   3,110   3,110   3,110   2,974  
    ALLL to total loans   1.16 % 1.15 % 1.13 % 1.13 % 1.09 %
    Nonperforming loans $ 991   77   160   61   0  
                 
    END OF PERIOD BALANCES            
    Total loans $ 267,955   270,020   274,753   275,198   273,935  
    Total assets $ 433,754   430,439   441,069   420,217   422,279  
    Deposits $ 341,792   353,596   349,506   333,312   332,298  
    Loans to deposits   78.4 % 76.4 % 78.6 % 82.6 % 82.4 %
    Shareholders’ equity $ 38,532   38,062   37,626   37,375   37,046  
    Full-time equivalent employees   44   44   46   45   44  
                 
    AVERAGE BALANCES (QTRLY)            
    Total loans $ 273,960   267,766   275,578   276,016   268,186  
    Earning assets $ 410,298   416,965   412,791   404,210   400,993  
    Total assets $ 424,199   430,830   426,592   417,595   414,457  
    Deposits $ 346,142   346,032   341,226   323,300   329,121  
    Shareholders’ equity $ 38,267   37,788   37,443   37,179   36,469  

    The MIL Network –

  • MIL-OSI Australia: Meal timing may be crucial for night shift workers’ health

    Source: University of South Australia

    05 November 2024

    A new Australian study published in Diabetologia this week has found that overnight eating may be putting night shift workers at higher risk of chronic health conditions.

    Led by researchers from the University of South Australia, University of Adelaide and SAHMRI, the NHMRC-funded study involved a six-day trial with 55 adults in the healthy BMI range, who don’t usually work night shifts.

    Participants stayed at the University of South Australia’s Behaviour-Brain-Body Sleep Research Centre and were divided into three groups: those who fasted at night, those who had snacks, and those who ate full meals.

    All participants stayed awake for four nights and slept during the day, with a recovery day on day five to re-establish normal sleeping and eating cycles, and blood glucose testing on day six.

    Prof Leonie Heilbronn, from SAHMRI and the University of Adelaide, says results showed participants who ate meals or snacks during the nightshift had significantly worse glucose tolerance compared to those who fasted.

     “We found that blood glucose skyrocketed for those who ate full meals at night and those who snacked, while the people who fasted at night showed an increase in insulin secretion which kept blood sugar levels balanced,” Prof Heilbronn says.

    “We know shift workers are more likely to have diabetes, they’re more likely to have heart disease, and they’re more likely to be overweight. Our research suggests that meal timing could be a major contributor to those issues.”

    Insulin sensitivity was disrupted among all participants, regardless of their eating habits, adding to the body of evidence that night shifts cause circadian misalignment and impair glucose metabolism.

    “When you eat a meal, your body secretes insulin, and that insulin helps your muscles and other tissues to take up glucose. If you become resistant to insulin, then you can’t take up that glucose as effectively into your muscles and if it continues, that potentially puts you at risk of diabetes.”

    Lead investigator UniSA Professor Siobhan Banks says not eating large meals while working night shift and instead eating primarily during the day could be a straightforward intervention to manage health outcomes for many workers.

    “This could be easier for people to follow than other, more complex diets,” Prof Banks says.

    Researchers say future trials will investigate whether eating only protein snacks on night shift is a potential solution to satiating hunger without predisposing workers to negative health consequences.

    …………………………………………………………………………………………………………………………

    Media contact: Candy Gibson M: +61 434 605 142 E: candy.gibson@unisa.edu.au

    Researcher contacts: Professor Siobhan Banks E: siobhan.banks@unisa.edu.au; Professor Leonie Heilbronn E: leonie.heilbronn@adelaide.edu.au

    Other articles you may be interested in

    MIL OSI News –

  • MIL-OSI New Zealand: Economy – Financial system remains resilient amidst economic downturn – Reserve Bank of NZ

    Source: Reserve Bank of New Zealand

    5 November 2024 – Risks to New Zealand’s financial system remain contained, Deputy Governor Christian Hawkesby says in releasing the November 2024 Financial Stability Report.
     
    Financial stability is critical for economic wellbeing. Trust and confidence in our financial system is essential for ensuring New Zealanders can safely save, borrow, and manage financial risk.

    Globally and in New Zealand, interest rates are declining as inflation subsides. Debt servicing costs are nearing their peak and beginning to decline, with advertised mortgage rates falling over the past six months. This shift will make mortgage costs more manageable for households.

    However, domestic economic challenges remain. Many households and businesses are feeling financial pressure and rising unemployment is posing challenges for some borrowers. Banks anticipate a slight increase in non-performing loans, albeit still below levels seen in previous recessions.

    “New Zealand banks are well positioned to continue supporting households and businesses, including effectively handling any potential loan defaults,” Mr Hawkesby says. “Our financial institutions are well prepared to ensure that credit remains available for households and businesses. The strength of our financial system means we are able to weather economic uncertainties and challenges, including increased geopolitical tensions.”

    We are supportive of efforts to improve competition in the banking sector – including the Commerce Commission market study and Parliament’s Select Committee enquiry. The Report outlines the initiatives we are undertaking to advance this work in our role as a prudential regulator and central bank.

    The implementation of the Deposit Takers Act is progressing swiftly. Our efforts this year have focused on developing standards for deposit takers, with the Depositor Compensation Scheme on track to launch by mid-2025.
     

    More information

    Read our November Financial Stability Report : https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=63022eac0b&e=f3c68946f8
    The November Financial Stability media conference starts at 1pm. See all event details. See full event details: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=d531d439c5&e=f3c68946f8
    In this media conference, we will be taking questions from the public through an online chatbox connected to the livestream. Please note that questions from media representatives in the room will be prioritised.
    Read our update on the housing market : https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=7eedfe2ad3&e=f3c68946f8
    Read our assessment of geopolitical risks: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=add80d3e93&e=f3c68946f8
    Read about the results of the 2024 Reverse Stress Test : https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=b1fce6d62c&e=f3c68946f8
    What is the Financial Stability Report: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=77bc49db11&e=f3c68946f8

    MIL OSI New Zealand News –

  • MIL-OSI USA: Precautionary Boil Water Advisory Issued for Customers of the Town of Richmond and Town of Hopkinton Public Water Systems

    Source: US State of Rhode Island

    The Rhode Island Department of Health (RIDOH) is alerting customers of the Town of Richmond Public Water System and the Town of Hopkinton Public Water System that they should boil their water before consuming from Thursday November 7th through approximately Tuesday, November 12th. This boil water advisory is a precaution while a water storage tank is being repaired.

    When repairs are being made to a water storage tank that is not isolated from the system, bacteria may get into the water supply. RIDOH wants to assure customers that there is currently no confirmed bacterial contamination within the water system(s) or the water that supplies the systems. Once the repairs on the storage tank are complete, and before the boil water advisory is lifted, the water system will disinfect the system (within safe levels), flush the pipes, and test the water (at least two consecutive samples collected 24 hours apart). RIDOH will review and approve water sample test results to assure no bacteria entered the water system. Once the repairs on the storage tank are complete, RIDOH will announce when the advisory is lifted. Customers will also be directly notified by the water system when the advisory is lifted. A list of addresses impacted by this precautionary boil water advisory are listed below.

    RIDOH advises: � All water used for drinking, preparing or cooking food, making ice, brushing teeth, or making infant formula should be boiled vigorously for at least one minute. Alternatively, customers can use bottled water. � Wash dishes in a dishwasher and use the sanitizer cycle. If you do not have a dishwasher, wash dishes in warm, soapy water and rinse the dishes with pre-boiled or bottled water. � Infants and young children should not be bathed in this water because they may swallow it accidentally. Anyone else using this water for bathing or showering should be careful to avoid swallowing the water.

    Contaminated water can cause diarrhea, cramps, nausea, headaches or other symptoms. Infants, young children, or people with weakened immune systems may have more severe symptoms. Boiling the water kills bacteria and other organisms in the water. Additional guidance is available online. RIDOH is sharing specific guidance with restaurants and other food establishments in the area. (Guidance for food establishments is also available online.)

    Any water system customer who has diarrhea and any of the following symptoms should contact a healthcare professional. � Fever higher than 101.5� F, measured orally; � Blood in the stool; � Prolonged vomiting that prevents keeping liquids down (which can lead to dehydration); � Diarrhea that lasts more than three days; or � Symptoms of dehydration (decrease in urination, dry mouth and throat, and feeling dizzy when standing up).

    Customers with questions can call Danielle Agajanian, Northeast Water Solutions, at 401-667-7463 extension101, Monday-Friday, 8:45 a.m. � 3 p.m.

    Customers of the Town of Hopkinton Water System at the following addresses are impacted by this precautionary boil water advisory: � Bank Street: Number 10 � Locustville Road: Numbers 10 and 14 � Main Street: Numbers 995, 996, 999, 1006, 1009, 1017, 1023, 1024, 1026, 1027, 1035, 1036, 1039, 1040, 1044, 1045, 1048, 1050, 1053, 1054, 1059, 1060, 1064, 1066, 1070, 1074, 1078, 1082, 1089, 1090-A, 1093, 1097, 1100, 1105, 1105-A, 1110, 1111, 1113, 1114, 1115-A, 1115-B, 1115-C, 1116, 1117, 1119, 1121, 1123, and 1125 � Spring Street: Numbers 1 and 8 � Thelma Drive: Numbers 15 and 20

    Customers of the Town of Richmond Water System at the following addresses are impacted by this precautionary boil water advisory: � Beverly Lane: Numbers 2 and 4 � Bridge Street: Number 8 � Buttonwoods Road: Number 4 � Canob Lane: Numbers 5, 6, 7, 9, 11, 12, 13, 15, 17, 19, 20, 21, 23, 24, and 25 � Cards Farm Drive: Number 3 � Chariho Drive: Numbers 2, 5, 7, 8, 10, 11, 12, 13, 14, 15, 17, 18, 16, 20, 21, 22, and 23 � Deerfield Drive: Numbers 1, 8, and 15 � Jupiter Lane: Numbers 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 15, and 17 � K G Ranch Road: Numbers 30, 35, 38, 39, 61, 67, 70, 77, 82, 83, 88, 96, 98, 100, and 104 � Kingstown Road: Numbers 6, 12, 18, 21, 22, 26, 28, 30, 38, 39, 46, 54, 58, 66, 71, 73, 87, 91, 93-A, 93-D, 96, 101, 105, 122, and 180 � Main Street: Numbers 1120, 1122, 1129, 1131, 1133, 1135, 1136, 1139, 1141, 1143, 1146, 1147, 1150, 1050-A, 1151, 1152, 1155, 1158, 1160-A, 1160-B, 1167, 1171, 1175, 1187, 1190, 1199, 1200, 1203, 1209, 1210, 1214, and 1219 � Meadowbrook Road: Numbers 2, 4, 9, 10, 11, 12, 14, 15, 17, 22, and 23 � Nooseneck Hill: Numbers 6, 9, 11, 13, 17, 21, 25, 27, 29, 31, 33, 37, 37-A, 41, 43, 47, 49, 51, 54, 73, 78, and 85 � Old Kenyon Road: Numbers 10, 18, and 25 � Pinehaven Drive: Numbers 3, 4, 5, 7, 8, 9, 10, and 12 � Springbrook Road: Number 2 � Spring Green Drive: Numbers 3, 5, 7, 9, and 11 � Stilson Road: Numbers 1, 5, 12, 39, 42, 47, 59, 62, 68, and 75 � Tall Timbers Drive: Number 1 � Whispering Pine: Numbers 5, 6, 11, 12, 17, 18, and 20 � Wildwood Court: Numbers 2 and 3 � Wood River Drive: Number 2

    MIL OSI USA News –

  • MIL-OSI Submissions: Economy – Affirm needs strategic positioning amid regulatory shifts in the crowded UK BNPL market, says GlobalData

    Source: GlobalData

    Following the news that the US-based buy now pay later (BNPL) startup Affirm has entered the UK market;

    Phoebe Hodgson, Associate Analyst, Banking and Payments at GlobalData, offers her view:

    “The BNPL market in the UK is becoming increasingly saturated. According to GlobalData’s 2024 Financial Services Consumer Survey*, only 21% of respondents in the UK have used an online BNPL service while buying goods and services. This limited adoption, coupled with an already concentrated market, where 75% of the UK market is held by five BNPL providers, suggests Affirm may find it challenging to position itself among the well-established competitors like Klarna, PayPal and Zilch.

    “Affirm’s unique selling points, such as extended loan periods and strategic partnerships, could help distinguish it, but it will have to overcome significant obstacles. One of the biggest hurdles is the evolving regulatory environment. The UK government seeks to regulate the BNPL product further, treating it as if it were a credit product, subjecting them to stricter consumer protections and potentially reducing the appeal for BNPL for both providers and consumers alike. Soon to be under stricter regulations, Affirm must work under pressure to assert itself among the UK customers, who are more cautious of debt amid high living costs and economic uncertainty. Furthermore, with competitors already moving towards innovative product extensions, and compliance initiatives, Affirm’s market entry may need to be more than just a product push – it must be a strategic positioning exercise to resonate with cautious UK consumers.”

    *Global survey conducted online in Q2 2024 among 67,292 consumers across 41 markets globally. The survey explores global consumer behaviors, purchasing preferences, and attitudes across the most important banking products. The UK’s sample is 5,003.

    About GlobalData

    4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.

    MIL OSI – Submitted News –

  • MIL-OSI: Announcement of New Revolving Credit Facility

    Source: GlobeNewswire (MIL-OSI)

    COCONUT CREEK, Fla., Nov. 04, 2024 (GLOBE NEWSWIRE) — Willis Lease Finance Corporation (NASDAQ: WLFC) (“WLFC” or the “Company”) today reported that on October 31, 2024, the Company entered into a new, $1.0 billion, five-year, revolving credit facility (the “Credit Agreement”) among WLFC, certain wholly-owned subsidiaries of WLFC, as guarantors, the lenders party thereto from time to time (the “Lenders”), and Bank of America, N.A., as administrative agent, collateral agent, swing line lender, and letter of credit issuer. The Credit Agreement replaced the existing $500.0 million revolving credit agreement, dated as of June 7, 2019 (as amended and restated, the “Existing Credit Agreement”), among WLFC, the lenders party thereto from time to time and MUFG Bank, Ltd. as agent.

    Under the Credit Agreement, WLFC may request an additional increase of the aggregate commitments from time to time up to an aggregate additional $250.0 million from the lenders, who may elect to make such increase available, upon the satisfaction of certain conditions.

    Proceeds from the revolving credit facility may be used for general corporate purposes. The credit facility will be available on a revolving basis until October 31, 2029, and WLFC may request to extend the maturity, subject to lender approval.

    Loans under the Credit Agreement will bear interest based on a floating rate (Term SOFR) plus a margin. In addition, WLFC has agreed to pay Bank of America, N.A. an unused line fee, quarterly in arrears, as well as pay other fees to Bank of America, N.A. and to the Lenders as separately agreed upon in writing.

    The Credit Agreement also requires WLFC to maintain, as of the last day of each Measurement Period (as defined in the Credit Agreement), commencing with the last day of the fiscal quarter ending December 31, 2024, a Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of no less than 2.25 to 1.00, and a Consolidated Leverage Ratio (as defined in the Credit Agreement ) of no greater than 4.25 to 1.00 through June 30, 2025 and no greater than 4.00 to 1.00 thereafter.

    “We are very excited to have closed our new, expanded revolving credit facility,” said Scott B. Flaherty, the Company’s Chief Financial Officer. “Our new facility will provide incremental capital to support the growth we are experiencing across the WLFC platform.”

    Willis Lease Finance Corporation

    Willis Lease Finance Corporation (“WLFC”) leases large and regional spare commercial aircraft engines, auxiliary power units and aircraft to airlines, aircraft engine manufacturers and maintenance, repair and overhaul providers worldwide. These leasing activities are integrated with engine and aircraft trading, engine lease pools and asset management services through Willis Asset Management Limited, as well as various end-of-life solutions for engines and aviation materials provided through Willis Aeronautical Services, Inc. Additionally, through Willis Engine Repair Center®, Jet Centre by Willis, and Willis Aviation Services Limited, the Company’s service offerings include Part 145 engine maintenance, aircraft line and base maintenance, aircraft disassembly, parking and storage, airport FBO and ground and cargo handling services.

    Except for historical information, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties. Do not unduly rely on forward-looking statements, which give only expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include, but are not limited to: the effects on the airline industry and the global economy of events such as war, terrorist activity and pandemics; changes in oil prices, rising inflation and other disruptions to world markets; trends in the airline industry and our ability to capitalize on those trends, including growth rates of markets and other economic factors; risks associated with owning and leasing jet engines and aircraft; our ability to successfully negotiate equipment purchases, sales and leases, to collect outstanding amounts due and to control costs and expenses; changes in interest rates and availability of capital, both to us and our customers; our ability to continue to meet changing customer demands; regulatory changes affecting airline operations, aircraft maintenance, accounting standards and taxes; the market value of engines and other assets in our portfolio; and risks detailed in the Company’s Annual Report on Form 10-K and other continuing reports filed with the Securities and Exchange Commission.

     CONTACT: Scott B. Flaherty
      EVP & Chief Financial Officer
      561.413.0112

    The MIL Network –

  • MIL-OSI USA: ICYMI—Hagerty Joins Mornings with Maria to Discuss Failed Economic and Foreign Policies of Biden-Harris Administration

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    NASHVILLE, TN—United States Senator Bill Hagerty (R-TN), a member of the Senate Banking and Foreign Relations Committees, today joined Mornings with Maria on Fox Business to discuss the failed economic and foreign policies of the Biden-Harris Administration and their sharp contrast with the successful policies of the Trump Administration. 

    *Click the photo above or here to watch*
    Partial TranscriptHagerty on the failed economic policies of the Biden-Harris Administration: “Well, the economic policies of this Administration under Kamala Harris have been an absolute disaster for America. If you look at it, 72 percent of American people think that this country is on the wrong track, and the number one issue, Maria, is the fact that real wages have gone down. Inflation has destroyed and devastated families here in America, and I think the only thing keeping the market up right now is the anticipation, and frankly, the sheer hope that President Trump gets reelected on Tuesday.”
    Hagerty on the failed foreign policies of the Biden-Harris Administration: “Well, if you look at the foreign policy of this Administration, it’s absolutely pathetic. Under President Trump, we had no wars. Under [Joe] Biden and [Kamala] Harris, this has been a complete disaster. It goes back to the failed withdrawal from Afghanistan where Kamala Harris was the quote, ‘last voice in the room.’ That was an absolute disgrace and a disaster that embarrassed our nation like nothing in our lifetimes, Maria. And that invited and precipitated, I think, and emboldened our adversaries around the world. You look at what happened with Iran: the day that this Administration came into office, they stopped enforcing sanctions against Iran. I worked very closely with President Trump and in his Administration to impose maximum sanctions on Iran, to put maximum pressures on them, to get our allies to stop buying oil from Iran. It worked. What we did was we made Iran basically broke. We stopped the funding of Hamas, stopped the funding of Hezbollah, the Houthis had no funds. We saw peace break out in the Middle East. President Trump was able to move our embassy to Jerusalem. He was able to take out Soleimani and Al-Baghdadi. He even did the Abraham Accords, which was the foundation, I think, of peace and prosperity in the Middle East. Iran could do nothing about it. As soon as [Joe] Biden comes into office, as soon as [Kamala] Harris comes into office, they start allowing the funds to flow, and we have terrible wars outbreaking in the Middle East.”
    Hagerty on Kamala Harris running conflicting advertisements on Israel stance: “Well, she wants to [have it both ways]. It’s a complete lack of integrity. And if you talk about having it both ways, we have seen her flip-flop on every major policy. It’s like an avatar, Maria. The media have helped support this. Again, the partisan media, not yourself, have helped support creation of a candidate that’s nowhere close to where Kamala Harris from San Francisco, the most liberal Senator in the United States Senate, has been for her entire political career. Now they’re trying to create something entirely different, entirely false. They send one message into Michigan. They’ll send a completely different message into Pennsylvania to try to appeal to Jewish voters. I think the American public can see right through this.”
    Hagerty on Iran changing its nuclear policy to produce nuclear weapons: “Well, I remind you, we wouldn’t be in a position for Iran to respond at all were President Trump in office because we brought Iran to its knees. That’s got to happen again. If Kamala Harris gets into office, I think Iran’s going to have free range to do whatever they want to do, because they’re going to continue to allow Iran to bring billions of dollars in. They’re going to continue to allow them to pump [oil]. They’re going to continue to allow Iran to sell weapons to Russia. Iran has had free reign under Kamala Harris, and at the same time, you see her bringing in people like Liz Cheney, others that all want to see war breakout in the Middle East. I think what we’ve got to do is look directly at what the past has shown us. We’ve got a track record with President Trump That has delivered peace and prosperity. We’ve got a track record with Kamala Harris that has delivered nothing but agony and war in the Middle East and around the world.”
    Hagerty on the top priority of a second Trump Administration: “Well, for me, Maria, our foreign policy is derived directly from the strength of our economy. We have the most amazing, the most prosperous economy in the world. Access to that economy is absolutely critical. President Trump understands that. Let’s get our economy moving again. That’s what the people of America need to see. We need to see security at our southern border. We have a national security risk like we’ve never seen before. No one’s better than you in reporting on this. But then we’ve got to turn around and deal with strength and credibility with our adversaries. No one in the world believes that Kamala Harris can deal with Vladimir Putin, can deal with Xi Jinping, can deal with the Ayatollah. She has no credibility whatsoever. President Trump has and will.”

    MIL OSI USA News –

  • MIL-OSI Economics: African Development Bank-backed research highlights potential of health tech to boost Africa’s health systems

    Source: African Development Bank Group

    A new study co-funded by the African Development Bank finds that applying technology to healthcare delivery, management, and research could provide more Africans with universal health coverage and significantly advance Africa’s progress towards achieving the United Nations Sustainable Development Goals.

    The report, titled Policy Blueprint to Fast-Track Healthtech Innovations in Public Health in Africa, examined the potential of health technology innovations – called healthtech to benefit patients, health systems and communities across the continent. Commissioned by HealthTech Hub Africa and produced by VillageReach, the study was funded by UBS Optimus Foundation and the African Development Bank Group’s Innovation and Entrepreneurship Lab with financing from the Swiss State Secretariat for Economic Affairs.

    The study, conducted between May 2023 and February 2024, involved data collection and stakeholder consultation with innovators, startups, investors, civil society, and government and civil society representatives across 11 African countries — Côte d’Ivoire, Ethiopia, Kenya, Malawi, Nigeria, Rwanda, Senegal, South Africa, Tanzania, Uganda, and Cameroon.

    The findings offer policy guidance, specific actions and practical examples to accelerate healthtech in Africa while supporting innovation development, testing and sustainability.

    Dr. Babatunde Omilola, the African Development Bank’s Manager for Public Health, Security and Social Protection, emphasized the timeliness of the report. “This policy blueprint comes at a very opportune time as it gives policy directions to governments across Africa who are witnessing increased entrepreneurs involved in developing innovative healthtech products. The policy guidance will help create an enabling environment for products that can improve healthcare access and quality while reducing costs for millions.”

    The report identified several challenges hindering mainstreaming health tech in Africa, including:

    • Lack of unified, comprehensive and updated policies
    • Complex licensing processes
    • Fragmented and poorly digitized health data systems
    • Insufficient funding and innovation incentives

    To address these issues, the report recommends:

    • Strengthening dialogue and coordination among healthtech stakeholders
    • Refining policies on health data access and interoperability
    • Accelerating innovation while safeguarding data

    The study aligns with the African Development Bank’s broader efforts to improve healthcare across the continent. In 2022, the Bank approved its Strategy for Quality Health Infrastructure for Africa 2022-2030, which supports facilities like connection to water and sanitation, energy, transport, and communications services. In 2020, it adopted the Pharmaceutical Sector Action Plan to enhance local production capacities of medicines and vaccines and support research and development of pharmaceutical products.

    Click here to read the report.

    MIL OSI Economics –

  • MIL-OSI USA: Senator Reverend Warnock, Colleagues Urge Federal Agencies Expand Outreach on Discharging Student Loan Debt in Bankruptcy

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    Senator Reverend Warnock, Colleagues Urge Federal Agencies Expand Outreach on Discharging Student Loan Debt in Bankruptcy

    New data shows vast majority of borrowers using the new guidance received recommendations for either full or partial debt discharge
    ICYMI from Business Insider: More student-loan borrowers are taking advantage of an updated route to get rid of their debt in bankruptcy court, top Democratic senators say
    Senator Reverend Warnock, lawmakers: “We encourage your agencies to continue to expand awareness of the guidance so that the 43 million borrowers in the United States… may be able to access relief if they need to file for bankruptcy”
    Washington, D.C. – Today, U.S. Senators Reverend Raphael Warnock (D-GA), Elizabeth Warren (D-MA), Dick Durbin (D-IL), and Sheldon Whitehouse (D-RI) urged the Department of Justice (DOJ) and Department of Education (ED) to continue expanding awareness to student loan borrowers who are struggling financially about available resources to discharge their student loans in bankruptcy.
    In November 2022, the DOJ and ED issued guidance to DOJ attorneys that sought to streamline the process of discharging student loans in bankruptcy. Prior to this change, borrowers had to undergo a confusing, invasive, and time-consuming process in bankruptcy court to prove repayment would constitute an “undue hardship.”
    “The ‘undue hardship’ standard historically set an unnecessarily high bar that essentially required borrowers to demonstrate a certainty of hopelessness to obtain relief,” wrote the senators.
    99.9% of borrowers who filed bankruptcy from 2011 to 2019 did not have their student loans discharged — borrowers came to believe that there was no way out of the crushing weight of student loans, even through bankruptcy. Since DOJ and ED’s new process was announced, more and more borrowers have received relief. New data obtained by Senator Warren’s office show that, under the Biden administration’s new guidance, 85% of borrowers who sought relief received recommendations for either full or partial debt discharge.
    The high rates of total or partial discharge for those who have applied through the new guidance suggest that many other borrowers could also qualify if they applied. The senators are pushing to expand awareness on the more transparent, fair, and accessible process.
    “We thank you for your agencies’ ongoing commitment to helping borrowers struggling with student debt and urge continued outreach to expand awareness of the streamlined process for qualified borrowers,” concluded the senators.
    Senator Reverend Warnock has long advocated for comprehensive action to address the student loan crisis and has continued pushing the Administration to deliver meaningful student debt relief. Most recently, Senator Warnock led the first Senate Banking committee hearing in over a decade to focus on private student loans and explored the lack of data and transparency in that market and loan servicing concerns while highlighting the potential legislative and regulatory recommendations and measures to stop these abusive practices and to better protect students and taxpayers. Additionally, in August of 2023, the Senator pushed President Biden to swiftly fulfill his promise to deliver targeted student debt cancellation to working and middle-class families following the misguided SCOTUS decision overturning the President’s student debt cancellation.
    The letter can be found HERE and text of the letter is below:
    Dear Attorney General Garland and Secretary Cardona:
    We are writing today to highlight and support your agencies’ progress in making it easier for borrowers struggling financially to discharge their student loans in bankruptcy. In November 2022, the Department of Justice (DOJ) and Department of Education (ED) released guidance to DOJ attorneys that sought to streamline the process of discharging student loans in bankruptcy. In the time since, more and more borrowers have taken advantage of this guidance and received relief.
    The 1978 Bankruptcy Code allowed borrowers to discharge their federal student loans by demonstrating that repayment would impose an “undue hardship” on the borrower or by showing that the loan became due at least five years before the borrower’s bankruptcy filing. Subsequent amendments benefitting lenders, however, removed the second option. Further, the “undue hardship” standard historically set an unnecessarily high bar that essentially required borrowers to demonstrate a certainty of hopelessness to obtain relief. The federal government’s aggressive challenges in bankruptcy court against students who pursued undue hardship claims only exacerbated the issue. The lack of clarity resulted in a situation where 99.9% of borrowers who filed bankruptcy from 2011 to 2019 did not have their student loans discharged and remained burdened by student loans even after exiting the bankruptcy process.
    In November 2022, after we advocated for a more simplified and transparent process, DOJ and ED published new guidance to make it easier for borrowers to discharge student loans through bankruptcy. The guidance outlined a more transparent, fair, and accessible process designed to empower borrowers burdened with crippling student loan debt who previously had no clear pathway for relief.
    Previously unpublished data obtained by our offices show the impressive growth of the program thus far. For example, while only roughly 200 borrowers attempted to discharge student debt in each of Fiscal Years (FY) 2021 and 2022, that number rose to 648 in FY 2023. In less than eight months in FY 2024, nearly 900 borrowers sought to discharge their student loans in bankruptcy, adding up to 1,520 borrowers since the guidance was implemented.
    Equally important, both unpublished and publicly available data show that the overwhelming majority of those who sought discharge using the new guidance were provided debt relief through full or partial discharge. The Biden Administration recommended approximately seven in 10 borrowers who filed using the updated guidance for full student loan debt discharge. The Administration recommended another 15% of borrowers receive partial debt discharge, meaning 85% of borrowers using the new guidance received recommendations for either full or partial debt discharge. Critically, courts accepted those recommendations in 98% of cases, meaning borrowers received real relief at the end of this process.
    ED and DOJ deserve praise for the complete turnaround of student loan bankruptcy outcomes and you should continue to build on the successes of the streamlined guidance so that more borrowers with crushing student loan debt can find relief. We encourage your agencies to continue to expand awareness of the guidance so that the 43 million borrowers in the United States, who carry a total of $1.6 trillion dollars in student loan debt, may be able to access relief if they need to file for bankruptcy. The high rates of total or partial discharge for those who have applied through the new guidance suggest that many other borrowers would also qualify if they have applied. For years, borrowers came to correctly believe that there was essentially no way out of the crushing weight of student loans, even through bankruptcy. ED and DOJ have changed this narrative and you should continue to educate potentially qualifying borrowers, their attorneys, and other individuals and organizations who work to help borrowers. 
    We thank you for your agencies’ ongoing commitment to helping borrowers struggling with student debt and urge continued outreach to expand awareness of the streamlined process for qualified borrowers. Further, for Congress and the public to better assess your agencies’ plans to increase borrowers’ access to relief through bankruptcy, please provide responses to the following questions by November 12, 2024:
    What types of education and outreach have your agencies already used to reach borrowers regarding the new guidance?
    What are your agencies’ plans for continued and improved education and outreach about the streamlined process to borrowers who may benefit from it? 
    What specific goals do your agencies have for measuring the success of increased education and outreach to borrowers who may benefit from the streamlined process? How will these goals change over time if at all? 
    Do your agencies have systems in place so that borrowers who have filed for bankruptcy can track their filing? If a system does not yet exist, what resources do your agencies need to create one? 
    How much time elapses, on average, between a borrower’s bankruptcy filing and a discharge determination entered by a court under the new process? Please provide a timeline of the different phases of the process (e.g., filing of an adversary proceeding, review by the assigned DOJ attorney, review by ED, recommendation filed by DOJ and ED) and how long each phase typically takes.
    Do your agencies track or record the reasons for denial of discharge based on the factors considered under the guidance? If so, please describe the 3-5 most common reasons you have identified.
    Do your agencies track or record student loan discharge outcomes by region? If so, please describe any regional trends you have observed.
    How can Congress support your agencies as you increase your education and outreach efforts to borrowers?

    MIL OSI USA News –

  • MIL-OSI Economics: ADB, Partners Mark Start of Construction of Tina River Hydropower Project in Solomon Islands

    Source: Asia Development Bank

    HONIARA, SOLOMON ISLANDS (5 November 2024) — The Asian Development Bank (ADB) today joined project partners in Solomon Islands for a ceremony to mark the beginning of construction of the Tina River main dam structure.

    Solomon Islands Prime Minister Jeremiah Manele led the commissioning ceremony. He was joined by ADB Director General for the Pacific Leah Gutierrez, World Bank Country Director for Papua New Guinea and the Pacific Islands Stephen Ndegwa, Australia’s High Commissioner to Solomon Islands Rod Hilton, other senior government officials, and representatives from Korea Water Resources Corporation, Hyundai Engineering Corporation Limited, and Tina Hydropower Limited.

    “This transformational project will support the development of renewable energy to supply electricity to the capital, Honiara,” said Ms. Gutierrez. “This project is a testament to the power of partnerships that has prioritized climate change action, sustainability, and community development.”

    The 15-megawatt hydropower plant will be developed on the Tina River, just outside Honiara, which will reduce the country’s reliance on imported fossil fuels.

    Tina Hydropower Limited, a special project company, consisting of Korea Water Resources Corporation and Hyundai Engineering Corporation Limited, implements the project through a build-operate-own-transfer scheme.

    ADB supports the project with a $18 million loan from its concessional ordinary capital resources and a $12 million grant from the Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries.

    Other project partners include the Abu Dhabi Development Fund, Australian government, Export–Import Bank of Korea, and the Green Climate Fund. 

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

    MIL OSI Economics –

  • MIL-OSI Economics: Strengthening Local Government Engagement in the Greater Mekong Subregion: A Strategic Approach

    Source: Asia Development Bank

    The report explains how the GMS Economic Cooperation Program Strategic Framework 2030, endorsed by the GMS leaders, builds upon the program’s focus on connectivity and project-led development. It details how to utilize the existing GMS Economic Corridors Forum and the Governors’ Forum effectively to boost local government engagement. It recommends piloting smaller sub-corridor forums, better engaging cities, and boosting local government capacity to better tackle regional development challenges.

    MIL OSI Economics –

  • MIL-OSI Economics: The Nexus of Peer-to-Peer Lending and Monetary Policy Transmission: Evidence from the People’s Republic of China

    Source: Asia Development Bank

    Using state-dependent local projection methods, the results of the paper indicate a weaker transmission during boom phases. Stricter regulation on P2P lending since 2017 in the PRC and the substantial scaling back of P2P lending could positively impact the monetary management of the economy.

    MIL OSI Economics –

  • MIL-OSI United Nations: Avoid ‘All Out War’ in Lebanon, Stop ‘Tit-for-Tat Violence’ Engulfing Middle East, Secretary-General Tells Security Council

    Source: United Nations – Peacekeeping

    Following are UN Secretary-General António Guterres’ remarks at the Security Council meeting on the situation in the Middle East, in New York today:

    The raging fires in the Middle East are fast becoming an inferno.  Exactly one week ago, I briefed the Security Council about the alarming situation in Lebanon.  Since then, things have gone from bad to much, much worse.

    As I told the Council last week, the Blue Line has seen tensions for years.  But since October, exchanges of fire have expanded in scope, depth and intensity.

    I stated that the almost daily exchanges of fire by Hizbullah and other non-State armed groups in Lebanon and the Israel Defense Forces are in repeated violation of Security Council resolution 1701 (2006).

    I emphasized that the daily use of weapons by non-State armed groups is in violation of Security Council resolutions 1559 (2004) and 1701 (2006).

    And I stressed that Lebanese sovereignty and territorial integrity must be respected and the Lebanese State must have full control of weapons throughout Lebanon.

    In the few short days since then, we have seen a dramatic escalation — so dramatic that I wonder what remains of the framework this Council established with resolution 1701 (2006).

    Israeli forces have conducted relentless air strikes across Lebanon — including Beirut.

    The United States and France — with the support of several other countries — have proposed a temporary ceasefire, allowing for the restart of negotiations.

    Israel refused that proposal and stepped up its strikes, including bombing the Hizbullah headquarters where its leader was killed.

    Hizbullah has continued rocket and missile attacks on Israel.

    And yesterday, the Israel Defense Forces conducted what it stated were “limited incursions” into southern Lebanon.

    UNIFIL [United Nations Interim Force in Lebanon] peacekeepers remain in position, and the UN flag continues to fly despite Israel’s request to relocate [it].

    I reiterate our deep appreciation to the military and civilian members of our UN peacekeeping force — UNIFIL — and to troop-contributing countries.  The safety and security of all UN personnel must be ensured.

    Civilians are paying a terrible price — which I utterly condemn.  Since last October, more than 1,700 people have been killed in Lebanon — including over 100 children and 194 women.

    Over 346,000 people are confirmed to have been displaced from their homes.   Government estimates put this number as high as 1 million.  Another 128,000 people — both Syrian and Lebanese — have crossed into Syria.

    The UN has mobilized all its capacities to provide urgent humanitarian aid in Lebanon and I ask the international community to fully fund our appeal.

    Since 8 October 2023, Hizbullah attacks on Israel have killed 49 people — with over 60,000 people displaced from their homes.

    It is absolutely essential to avoid an all out war in Lebanon which would have profound and devastating consequences.

    Yesterday, Iran launched approximately 200 ballistic missiles towards Israel.  It stated it was in response to the killings of Hassan Nasrallah and the Islamic Revolutionary Guards Corp commander, Abbas Nilforoushan, last week — as well as that of the Hamas leader, Ismail Haniyeh, in Tehran in July.

    Millions of people across Israel and the Occupied Palestinian Territory were forced to seek shelter.  One person was killed from the Iranian strikes — a Palestinian in the occupied West Bank.

    As I did in relation to the Iranian attack in April – and as should have been obvious yesterday in the context of the condemnation I expressed — I again strongly condemn yesterday’s massive missile attack by Iran on Israel.

    These attacks paradoxically do nothing to support the cause of the Palestinian people or reduce their suffering.

    Almost one year has passed since the atrocious 7 October 2023 acts of terror by Hamas and the taking of hostages.

    Since last October, Israel has conducted in Gaza the most deadly and destructive military campaign in my years as Secretary-General. The suffering endured by the Palestinian people in Gaza is beyond imagination.

    At the same time, the situation in the occupied West Bank, including East Jerusalem, continues to deteriorate with Israeli military operations, construction of settlements, evictions, land-grabs and intensification of settler attacks — progressively undermining any possibility of a two-State solution.

    And simultaneously, armed Palestinian groups have also used violence.  Hamas has continued to launch rockets, and just yesterday seven Israelis were killed in a terror attack in Jaffa.

    The events of the past week, the past month and indeed nearly the past year make it clear:

    It is high time for an immediate ceasefire in Gaza, with the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid to Palestinians in Gaza and irreversible progress to a two-State solution.

    It is high time for a cessation of hostilities in Lebanon, real action towards full implementation of Security Council resolutions 1559 (2004) and 1701 (2006), paving the way for diplomatic efforts for sustainable peace.

    It is high time to stop the sickening cycle of escalation after escalation that is leading the people of the Middle East straight over the cliff.

    Each escalation has served as a pretext for the next.  We must never lose sight of the tremendous toll that this growing conflict is taking on civilians.

    We cannot look away from systematic violations of international humanitarian law.  This deadly cycle of tit-for-tat violence must stop.  Time is running out.

    MIL OSI United Nations News –

  • MIL-OSI Economics: Q&A: Default and Loss Data by ADB and Other MDBs

    Source: Asia Development Bank

    Article | 05 November 2024
    Read time: 5 mins

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    •  Robust credit data are fundamental to lending volume and pricing decisions, capital adequacy assessment, and overall strategic decisions to catalyze private investors to invest more in emerging markets.
    •  ADB’s report on sovereign default and loss rates demonstrates the low credit risk in ADB’s sovereign operations, with an average default rate of 0.54% over the last 34 years and zero new defaults from 2010 to 2021.
    •  By making their own credit data publicly available, MDBs are empowering private and public investors with valuable insights into the actual creditworthiness indicators of borrowers in developing countries.

    On 10 October 2024, ADB published a comprehensive report detailing its sovereign default and loss rates over a 34-year period. This report, made in keeping with ADB’s commitment to data transparency, shows the remarkable credit performance of loans to its developing member countries (DMCs). On 15 October 2024, the GEMs Consortium—a group of 26 multilateral development banks (MDBs) and development finance institutions (DFIs)—published two reports that provide insights on the performance of credit portfolios and credit risk in emerging markets and developing economies (EMDEs) based on the group members’ investment experiences.

    Stephen O’Leary, Head, Office of Risk Management, ADB

    What prompted major MDBs to disclose their proprietary data, such as credit data, to the public?

    Unlike in developed economies, there is a deficit of reliable data on credit performance in the emerging markets where MDBs operate. This leads to misconceptions about the level of risk in those regional debt markets. Therefore, major MDBs have decided to disclose their aggregated detailed default and recovery statistics at a more granular level in response to shareholders’ demand for greater transparency.

    By making their own credit data publicly available, MDBs are empowering private and public investors with valuable insights into the actual creditworthiness indicators of borrowers in developing countries. This information is crucial for investors who often perceive these markets as high risk due to a lack of data. The MDBs are playing a key role in changing this perception.

    How significant are the data being shared?

    The published data have additional granularity which may help refine credit models. Robust credit models are fundamental to lending volume and pricing decisions, capital adequacy assessment, and overall strategic decisions to operate in specific markets. MDB’s private sector data should also catalyze private investors to invest more in emerging markets.

    What are the key insights from the recent GEMs publication of private sector defaults and recoveries?

    To underscore the reliability of the insights, it should first be highlighted that the GEMs report has one of the biggest populations of approximately 2000 private sector defaults. For comparison, the S&P’s Emerging and frontier markets corporate default summary showcases around 500 default instances since 1997.

      The GEMs report reveals that private-sector lending in EMDEs has a historical average default rate of 3.56%, which implies S&P Corporates’ B rating. The annual default rates were surprisingly stable and slightly below the historical average for the past 20 years. The fact that lending in frontier markets did not result in high default rates is a remarkable finding, especially given that the MDBs prioritize development goals over profitability.

    The data also highlight that financials comprise 36% of MDBs and IFIs borrowers, while utilities comprise approximately 14%. The financials have the lowest default rate among all sectors. Such MDBs’ sectoral concentration facilitates credit transmission into the economies of developing countries via financial intermediaries. While lending to renewable energy and sustainable utilities infrastructure simultaneously reduces climate risk.

    What steps has GEMs Consortium taken to improve the data?

    GEMs Consortium continuously improves the data to increase their usability and credibility among investors and stakeholders. The consortium has already updated its methodology documentation, providing detailed explanations of data collection processes and sources. Additionally, GEMs Consortium invests in streamlined data collection technologies to ensure more timely and granular updates, facilitating better decision-making in fast-changing market conditions.

    How can sovereign data disclosures help the borrowers?

    Disclosing sovereign default and recovery data is important as they detail the performance of an MDB sovereign lending in a specific country. Such disclosures should help investors enter cofinancing agreements with an MDB. For example,   ADB’s report on sovereign default and loss rates demonstrates the low credit risk in ADB’s sovereign operations, with an average default rate of 0.54% over the last 34 years and zero new defaults from 2010 to 2021. The data underscore the strength of ADB’s relationship with its developing member countries and the preferred creditor treatment accorded to ADB.

    The recent strides made by MDBs in enhancing credit data disclosures are a testament to their commitment to transparency and accountability. These efforts, when continued, will ensure that stakeholders, including governments, civil society, and the public, have access to reliable and comprehensive data. This, in turn, will contribute to sustainable development and financial stability on a global scale.

    In conclusion, the true utility of data is realized only when there is widespread global awareness of their free availability. While collecting and publishing data are essential steps, effective dissemination is key to maximizing their impact. The MDB community can significantly enhance the development benefits by engaging independent market participants to review, comment on, and utilize credit data. This collaborative approach not only enriches the value of the data but also fosters broader participation, ultimately driving meaningful outcomes.

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    Subjects
    • ADB administration and governance
    • Public sector (Sovereign) financing
    • Finance sector development

    MIL OSI Economics –

  • MIL-OSI Economics: Money Market Operations as on November 04, 2024

    Source: Reserve Bank of India
    (Amount in ₹ crore, Rate in Per cent)
      Volume
    (One Leg)    		 Weighted
    Average Rate    		 Range
    A. Overnight Segment (I+II+III+IV) 550,223.53 6.12 5.00-6.50
         I. Call Money 7,899.89 6.41 5.10-6.50
         II. Triparty Repo 396,114.85 6.08 5.41-6.25
         III. Market Repo 145,225.79 6.22 5.00-6.50
         IV. Repo in Corporate Bond 983.00 6.40 6.40-6.41
    B. Term Segment      
         I. Notice Money** 296.85 6.39 6.20-6.50
         II. Term Money@@ 657.00 – 6.50-6.90
         III. Triparty Repo 790.00 6.21 5.50-6.36
         IV. Market Repo 831.61 6.53 6.35-6.67
         V. Repo in Corporate Bond 0.00 – –
      Auction Date Tenor (Days) Maturity Date Amount Current Rate /
    Cut off Rate
    C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
    I. Today’s Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo          
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo Mon, 04/11/2024 3 Thu, 07/11/2024 74,000.00 6.49
    3. MSF# Mon, 04/11/2024 1 Tue, 05/11/2024 5,231.00 6.75
    4. SDFΔ# Mon, 04/11/2024 1 Tue, 05/11/2024 193,522.00 6.25
    5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*       -262,291.00  
    II. Outstanding Operations
    1. Fixed Rate          
    2. Variable Rate&          
      (I) Main Operation          
         (a) Repo          
         (b) Reverse Repo Thu, 31/10/2024 14 Thu, 14/11/2024 24,697.00 6.49
      (II) Fine Tuning Operations          
         (a) Repo          
         (b) Reverse Repo          
    3. MSF#          
    4. SDFΔ#          
    5. On Tap Targeted Long Term Repo Operations€ Mon, 15/11/2021 1095 Thu, 14/11/2024 250.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 2,275.00 4.00
    6. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 15/11/2021 1095 Thu, 14/11/2024 105.00 4.00
    Mon, 22/11/2021 1095 Thu, 21/11/2024 100.00 4.00
    Mon, 29/11/2021 1095 Thu, 28/11/2024 305.00 4.00
    Mon, 13/12/2021 1095 Thu, 12/12/2024 150.00 4.00
    Mon, 20/12/2021 1095 Thu, 19/12/2024 100.00 4.00
    Mon, 27/12/2021 1095 Thu, 26/12/2024 255.00 4.00
    D. Standing Liquidity Facility (SLF) Availed from RBI$       7,458.51  
    E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -13,698.49  
    F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -275,989.49  
    G. Cash Reserves Position of Scheduled Commercial Banks
         (i) Cash balances with RBI as on November 04, 2024 1,026,975.35  
         (ii) Average daily cash reserve requirement for the fortnight ending November 15, 2024 1,011,562.00  
    H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ November 04, 2024 0.00  
    I. Net durable liquidity [surplus (+)/deficit (-)] as on October 18, 2024 402,348.00  
    @ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
    – Not Applicable / No Transaction.
    ** Relates to uncollateralized transactions of 2 to 14 days tenor.
    @@ Relates to uncollateralized transactions of 15 days to one year tenor.
    $ Includes refinance facilities extended by RBI.
    & As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
    Δ As per the Press Release No. 2022-2023/41 dated April 08, 2022.
    * Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.
    € As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020, Press Release No. 2020-2021/1057 dated February 05, 2021 and Press Release No. 2021-2022/695 dated August 13, 2021.
    ¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
    £ As per the Press Release No. 2021-2022/181 dated May 07, 2021 and Press Release No. 2021-2022/1023 dated October 11, 2021.
    # As per the Press Release No. 2023-2024/1548 dated December 27, 2023.
    Ajit Prasad          
    Deputy General Manager
    (Communications)    
    Press Release: 2024-2025/1428

    MIL OSI Economics –

  • MIL-OSI Asia-Pac: SFST promotes Hong Kong’s status as international asset and wealth management and risk management centre in Switzerland (with photos)

    Source: Hong Kong Government special administrative region

         The Secretary for Financial Services and the Treasury, Mr Christopher Hui, started his visit to Zurich, Switzerland, yesterday (November 4, Zurich time) to promote Hong Kong’s status as an international asset and wealth management and risk management centre.

         Mr Hui in the morning met with the Chief Executive Officer, Corporate Solutions, Swiss Re Group, Mr Ivan Gonzalez, and the Chairman of the Board of Zurich Insurance Group, Mr Michel M Liès, respectively. During the exchanges with these two world-leading insurance services and risk-solution providers, Mr Hui updated them on Hong Kong’s latest initiatives as announced in “The Chief Executive’s 2024 Policy Address (Policy Address)” to further strengthen Hong Kong’s position as a global risk management centre. The initiatives include reviewing the risk-based capital regime implemented in July 2024 and examining the capital requirements for infrastructure investment to enrich insurance companies’ asset allocations for risk diversification, and drive investment in infrastructure; as well as continuing to invite Mainland and overseas enterprises to establish captive insurers in Hong Kong. 

         Hong Kong is currently home to around 160 insurance companies. It has the largest concentration of insurance companies and the highest insurance density in Asia.    

         Mr Hui had a lunch meeting with the Swiss-Hong Kong Business Association (SHKBA), one of the members of the Federation of Hong Kong Business Associations. Mr Hui shared with SHKBA members the huge scale and diversified investment opportunities of Hong Kong’s asset and wealth management business, adding that the city welcomes investors and family offices around the world.      

         At another gathering with leaders of a multinational financial service provider, Mr Hui briefed them on the enhancements proposed in the Policy Address that further strengthen Hong Kong’s status as an asset and wealth management hub. Hong Kong will consult the industry on increasing the types of transactions eligible for tax concessions for funds and single family offices to cover emission derivatives/emission allowances, insurance-linked securities, loans and private credit investments, virtual assets, etc. He also updated participants that the Government’s issuance of green bonds has been attracting strong interest from local and international investors. So far a total of HK$220 billion in government green bonds have been successfully issued, including a diverse array of bonds – retail, institutional, and tokenised – across multiple currencies and tenors.

         On the same day, Mr Hui met with the Head of Bilateral Cooperation, Swiss National Bank, Ms Lena Lee Andresen, to discuss issues of mutual concern such as the global trend of monetary policies. 

         Mr Hui also visited the headquarters of Gategroup, and met with their Chief Financial Officer, Mr Urs Schwendinger. Gategroup is a market-leading inflight caterer with a global presence, including Hong Kong. Noting that Hong Kong is an international aviation hub with continuous development of the Airport City, Mr Hui welcomed Gategroup to further expand their business in the city.  
        
         Mr Hui will depart for Geneva in the morning of November 5 (Zurich time) to continue his visit in Switzerland.                     

    MIL OSI Asia Pacific News –

  • MIL-OSI Economics: $100 Million ADB Loan to Strengthen Armenia’s Fiscal Sustainability and Financial Markets Development

    Source: Asia Development Bank

    MANILA, PHILIPPINES (5 November 2024) — The Asian Development Bank (ADB) has approved an €89.47 million ($100 million equivalent) policy-based loan as Subprogram 2 of Armenia’s Fiscal Sustainability and Financial Markets Development Program.  

    The reforms promoted under this programmatic approach, supported by ADB in partnership with Agence Française de Développement, strengthen Armenia’s fiscal management and deepen its financial markets. These reforms align with Armenia’s national strategy to enhance governance, promote economic stability, and accelerate climate action.

    Government reforms under Subprogram 2 promote critical objectives of fiscal reform, including improved multi-year budget planning and procurement governance, and strengthened public debt, fiscal risk, and public investment management. In addition to fiscal governance reforms, the program also supports the establishment of liquid money markets, facilitates greater investor confidence, and enhances corporate transparency and governance.  

    Armenia’s climate change action policy commitments will also be enabled by key program reform efforts to embed adaptation and mitigation concerns and environmental policy objectives in public financial management systems and in financial sector policy.

    “The reforms will stimulate the financial sector and access to finance, positioning Armenia as a more robust economy resilient to external risks,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.  

    Subprogram 2 builds on the successful implementation of Subprogram 1 and aims to reduce fiscal vulnerabilities and bolster investor confidence in its financial and capital markets.

    “This program is a vital step in promoting fiscal effectiveness and bolstering Armenia’s capacity to manage fiscal risks and public investments effectively, creating foundations for sustainable growth,” said ADB Principal Financial Sector Economist João Farinha-Fernandes.

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

    MIL OSI Economics –

  • MIL-OSI Economics: ADB to Help Nepal Upgrade Electricity Transmission and Distribution Infrastructure

    Source: Asia Development Bank

    MANILA, PHILIPPINES (5 November 2024) — The Asian Development Bank (ADB) has approved a $311 million loan to improve and modernize electricity transmission and distribution infrastructure in Nepal.

    “Upgrading and modernizing Nepal’s electricity transmission and distribution facilities and infrastructure is essential to its sustainable growth and development,” said ADB Principal Energy Specialist Jiwan Acharya. “Not only will this project ensure the reliable and sustainable delivery of electricity in the country, but it will also provide employment and business opportunities to make lives of Nepalese better and more comfortable.”  

    The project will finance a total of 290 kilometers (km) of power transmission lines from Dailekh to Jumla, New Butwal to Lamahi, Nijgadh to Ramauli, and Teenpiple and Okharpauwa. It will also expand, reinforce, and rehabilitate electricity distribution infrastructure in Karnali and Lumbini provinces. Distributed grid-connected solar photovoltaic generation facilities with a total capacity of 8 megawatts will be established in Karnali and other areas. 

    ADB will help the Nepal Electricity Authority (NEA) upgrade its training center, expand the smart meter rollout program, establish a data recovery center, and implement a Supervisory Control and Data Acquisition network. The project will conduct awareness-raising campaigns on safe and efficient energy use.

    ADB will provide an additional $30 million grant from its Asian Development Fund, which provides grants to ADB’s poorest and most vulnerable developing member countries, to support training and capacity building. Advanced communication tools and technology, funded by the grant, will equip NEA with skills in hydropower management and electricity dispatch significantly enhancing Nepal’s capability to trade power with neighboring countries. 

    The project will also support training of women and disadvantaged groups on business and technical skills, open energy-related employment opportunities, and expand energy-based businesses. It will help build the capacity of the NEA and other government agencies in power management, project management, new technologies, and power trade, among others.

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

    MIL OSI Economics –