Banking – Page 378 – NewzIntel.com

MIL-OSI Economics: Africa Investment Forum welcomes BADEA as new partner ahead of the December Market Days in Rabat

Source: African Development Bank Group

The Arab Bank for Economic Development in Africa (BADEA) has joined the Africa Investment Forum as a founding partner, marking a new phase in the Forum’s expansion and influence as a catalyst for mega investments into the continent.

The official announcement came during a breakfast meeting of heads of the Africa Investment Forum Founding Partner institutions, convened by the African Development Bank in Washington, DC on the sidelines of the International Monetary Fund and World Bank’s annual meetings. During the meeting, the partners examined and adopted a new strategic framework to govern the forum. The meeting took place on Friday 25 October.

In welcoming BADEA as a new partner, African Development Bank President Akinwumi Adesina said: “Since 2018, BADEA has been a steadfast supporter of the Africa Investment Forum, consistently contributing to the growth and success of this platform.”

The Arab Bank for Economic Development in Africa is a multilateral development financial institution owned by 18 Arab countries. Its operations cover the entire Sub-Saharan African region.

BADEA group president Dr. Sidi Ould Tah said the main shareholders of his bank had been working on a new mechanism to support investment flows to Africa. The group has sovereign funds under management with assets in the trillions of dollars, of which they had pledged to channel a part for Africa’s infrastructure needs.

“The role of BADEA is to catalyse resources for Africa. BADEA will work with all the member countries of AIF to make this pledge a reality,” Tah said.

The addition of BADEA brings the AIF’s founding partners to nine: the African Development Bank, Afreximbank, Africa Finance Corporation, Africa50, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank, and Trade and Development Bank.

Meeting of AIF founding partners in Washington, DC October 2024

Heads and representatives of each of the partners who attended the meeting included included Trade and Development Bank President and CEO Admassu Tadesse, Africa Finance Corporation’s CEO Samaila Zubairu, Africa50 President Alain Ebobissé, European Investment Bank Vice President Ambroise Fayolle, Hani Salem Sonbol Chief Executive Officer of the International Islamic Trade Finance Corporation representing Islamic Development Bank President Dr. Muhammad Sulaiman Al Jasser, and Afreximbank’s Director for Export Development Oluranti Doherty, who represented its president.

Adesina also commended the founding partners for their energy, drive and momentum which he described as a testament to their confidence in the Forum.

The AIF’s Market Days events, held annually, have drawn sovereign and non-sovereign investors from around the world, enabling a shift in risk perception and fostering confidence in Africa’s investment landscape.

The platform has actively supported women-led businesses under its Women as Investment Champions pillar with examples such as Mobihealth International Ltd (Healthcare, Nigeria) which was supported to access grant and loan funding for feasibility studies and pan-African expansion.

From the African Development Bank, Senior Vice President Marie Laure Akin-Olugbade, Hassatou N’Sele Vice President for Finance and CFO, Beth Dunford, Vice President for Agriculture, Human and Social Development, Nnenna Nwabufo, Vice President for Regional Development, Integration and Business Delivery and Kevin Urama, Chief Economist and Vice President, Economic Governance and Knowledge Management, also attended the meeting. The Senior Director of Syndications, the Africa Investment Forum and Client Solutions, Max Magor Ndiaye, and the Special Representative of President Adesina, Yacine Fall were also present.

The 2024 Market Days will take place from 4-6 December 2024 in Rabat, Morocco, under the theme: “Leveraging Innovative Partnerships for Scale.”

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: Mozambique: African Development Bank approves $54 million loan for Mozambique’s first wind energy project

Source: African Development Bank Group

The Board of Directors of the African Development Bank has approved a loan of $54 million for a 120 MW onshore wind farm that will help position Mozambique as a regional energy hub.

The Bank’s loan, which includes $12 million from the Sustainable Energy Fund for Africa (SEFA), is in addition to financing expected from International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF) and the Private Infrastructure Development Group’s Technical Assistance. The total project cost is estimated at $224.5 million.

Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, located 50 km west of Maputo, under a 25-year power purchase agreement.

The wind farm will be Mozambique’s first utility-scale wind power project. It is expected to generate 331.6 GWh annually, supplying affordable, reliable, and clean energy to both local consumers and regional markets, diversifying Mozambique’s energy mix, and improving access to electricity. It will also position the country as a regional energy hub, capitalizing on increased energy trade through the Southern African Power Pool (SAPP).

With Mozambique’s energy sources currently dominated by hydropower and gas, the Namaacha wind farm project will help reduce annual CO₂ emissions by approximately 71,816 tons, contributing to the country’s commitments under the Paris climate agreement.

The project will support economic growth, job creation, and improved living standards. During construction it will create 600 jobs, of which its targeting about 120 will be for women, and 300 for youth. Once operational, 20 permanent jobs will be created, with a focus on gender and youth inclusion.

Commenting on the project, Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, said, “This wind project represents a milestone for Mozambique and underscores the Bank’s strong commitment to advancing clean, renewable energy solutions in the region. It will not only enhance energy security but also facilitate regional electricity trade, benefiting Mozambique’s socio-economic development.”

Wale Shonibare, Director of the Energy Financial Solutions, Policy, and Regulations Department at the African Development Bank stressed the technological impact of this milestone project. “As the first large-scale wind energy initiative in Mozambique, this project showcases the transformative potential of renewable technologies to drive sustainable growth. By leveraging Mozambique’s natural resources, we are creating pathways toward a diversified and resilient energy sector that not only meets current demands but is future-proofed to support an evolving economy,” he said.

Globeleq is one of the project developers. Its CEO Jonathan Hoffman said: “The Namaacha Wind Farm is a significant milestone in Mozambique’s journey toward a diversified and sustainable energy landscape. We are proud to partner with EDM and Source Energia in contributing to the government’s ambitious ‘Energy for All by 2030’ program, which is rapidly transforming into a reality for countless Mozambicans. This project reflects our commitment to supporting Mozambique’s clean energy goals and bringing reliable power to the communities we serve.”

Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the project underscores Mozambique’s dedication to renewable energy development and supports its goal of achieving universal access to electricity by 2030.

The project complements the Bank’s earlier energy sector initiatives in Mozambique, including the Songo Matambo transmission line and the Mozambique Energy for All program.

MIL OSI Economics –

January 25, 2025

MIL-OSI Asia-Pac: FS continues to explore business opportunities for Hong Kong in Riyadh, Saudi Arabia (with photos)

Source: Hong Kong Government special administrative region

The Financial Secretary, Mr Paul Chan, together with a delegation, had their second day of visit in Riyadh, Saudi Arabia, yesterday (October 30, Riyadh time). In the morning, Mr Chan attended the listing ceremony for the first exchange-traded fund (ETF) in Saudi Arabia that invests in Hong Kong stocks at the Saudi Exchange. This product is the result of collaboration between Albilad Bank of Saudi Arabia and Hong Kong’s CSOP Asset Management Limited. Mr Chan highlighted that as the largest ETF in the Middle East, it will attract more regional investors and broaden funding sources for the Hong Kong market, while diversifying the investment product offerings in the Saudi market, fostering the development of its ETF market, creating a win-win situation. He also noted that after the first ETF investing in the Saudi market was listed in Hong Kong last November, this marks the Saudi Arabia’s first ETF investing in Hong Kong stocks. He believes that more diversified products will emerge in the future, providing investors from the Middle East with convenient channels to invest in Hong Kong and Mainland China, and enhancing the two-way flow of capital between Hong Kong and Saudi Arabia, and fostering greater connectivity and more vibrant development of the capital markets in both regions. Mr Chan and some delegation members also attended a breakfast meeting hosted by Hong Kong Exchanges and Clearing Limited (HKEX) to discuss capital market connectivity between Asia and the Middle East. During his keynote speech at the breakfast meeting, Mr Chan elaborated on Hong Kong’s significant role and function in the global capital market. He pointed out that Saudi Arabia’s Vision 2030 has brought major reforms and opportunities, promoting capital investment from Asian markets. With its unique advantage of “one country, two systems”, Hong Kong has become the premier international financial centre connecting the Middle East with the Chinese market, particularly in three key areas: a deep and broad fund-raising market, asset and wealth management, and green and sustainable finance. They provide diverse investment offerings for investors and enterprises in the Middle East, and providing financial support to regional economic development and green transformation. The breakfast meeting included a discussion session moderated by HKEX’s Chief Executive Officer (CEO), Ms Bonnie Chan, featuring remarks from CEO of the Saudi Exchange, Mr Mohammed Al-Rumaih; Deputy Chief Executive of the Hong Kong Monetary Authority, Mr Darryl Chan, and CEO of Standard Chartered Group, Mr Bill Winters. At noon, Mr Chan called on the Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Kingdom of Saudi Arabia, Mr Chang Hua, to brief him on Hong Kong’s latest economic developments and exchange views on China-Saudi co-operation and economic relations. In the afternoon, Mr Chan co-hosted a capital markets roundtable with Chairman of the Saudi Capital Market Authority, Mr Mohammed bin Abdullah Elkuwaiz. Representatives from regulatory bodies and a number of asset management institutions attended to discuss the latest developments in the financial markets of both regions and to explore further co-operation opportunities. Later, Mr Chan met with Governor of the Saudi Central Bank, Mr Ayman Alsayari, to discuss advancing connectivity in investment and financial markets between Hong Kong and Saudi Arabia and the Middle East, as well as co-operation in digital finance. In the evening, the Hong Kong Science and Technology Parks Corporation held the “Hong Kong Tech Disrupt” event, featuring over 20 startups in green technology, biotechnology, artificial intelligence and robotics, etc. They showcased their research products and sought to connect with investors and business partners. Yesterday, a number of delegation members also attended the “Future Investment Initiative” event and delivered speeches, continuing to tell the good story of China and Hong Kong. ??? Mr Chan and the delegation will continue their final day of visit in Riyadh today (October 31, Riyadh time).

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2024 Third-Quarter and Year-to-Date Financial Results

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2024 third quarter and year-to-date ended September 30, 2024.

2024 Third Quarter Financial and Operating Highlights (on a year-over-year basis unless noted):

86 consecutive quarters of profitability
Net income increased 36.4% to $6.5 million, or $0.48 per basic and diluted share, from $4.8 million, or $0.35 per basic and diluted share, and net income expanded 14.7% from the 2024 second quarter
Net interest margin increased 12 basis points to 2.71%
Efficiency ratio improved to 67.98%, compared to 73.07% for the same period a year ago, and 69.03% for the 2024 second quarter
Total net loans remain stable at $2.54 billion at September 30, 2024
Total assets increased 4.8% to a record $3.39 billion
Deposits increased 4.3% to a record $2.68 billion
Stockholders’ equity increased 10.6% to a record $335.4 million
Asset quality remains at historically strong levels with nonperforming loans of only $2.9 million at September 30, 2024, compared to $22.4 million at September 30, 2023
Allowance for credit losses was 879.37% of nonperforming loans
F&M ended the quarter with excellent liquidity levels, and over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%
According to the FDIC, F&M continued to have the third largest share of deposits out of the 58 financial institutions that are also operating within its local markets

Lars B. Eller, President and Chief Executive Officer, stated, “F&M produced excellent earnings growth on a year-over-year and sequential basis, driven by higher net interest income, historically strong asset quality, and prudent expense management. Most importantly, our third quarter results reflect the talent of our associates, as we continue to work hard to drive operating improvements at F&M, serve our local Ohio, Indiana, and Michigan communities, and position F&M for long-term success. In addition, I am pleased to report that F&M was the third largest bank out of 58 financial institutions within the markets we compete, according to the FDIC, reflecting the leading value we provide to our local communities. In fact, F&M is the number one bank, based on deposits, in almost half of the communities in which we operate.”

Income Statement
Net income for the 2024 third quarter ended September 30, 2024, was $6.5 million, compared to $4.8 million for the same period last year. Net income per basic and diluted share for the 2024 third quarter was $0.48, compared to $0.35 for the same period last year. Net income for the 2024 nine months ended September 30, 2024, was $17.6 million, compared to $17.2 million for the same period last year. Net income per basic and diluted share for the 2024 nine months was $1.28, compared to $1.26 for the same period last year.

Mr. Eller continued, “Our 2024 third quarter and year-to-date performance demonstrate the success of the near-term strategies we are pursuing to navigate a complex operating environment and improve earnings. Most importantly, while the demand for loans is high across our markets, our approach to risk and pricing remains conservative. This near-term strategy has contributed to excellent asset quality. In addition, we continue to focus on strategies aimed at optimizing our deposit base and growing low-cost checking (DDA) deposits. Since the beginning of 2024, we have added over 5,600 new checking accounts, and benefited from new and expanded relationships at offices that were opened in 2023. As a result, we ended the quarter with a loan-to-deposit ratio of 93.6%, compared to 97.2% at September 30, 2023, and 96.0% at June 30, 2024. Our third quarter of 2024 loan-to-deposit ratio was the lowest quarterly value in two years. The final near-term strategy we are pursuing is focused on controlling expenses, and I am encouraged by the continued year-over-year and sequential improvement in our efficiency ratio. This reflects the opportunities we are pursuing to manage operating costs and expand productivity.”

Deposits
At September 30, 2024, total deposits were $2.68 billion, an increase of 4.3% from September 30, 2023. The Company’s cost of interest-bearing liabilities was 3.2% for the quarter ended September 30, 2024, compared to 2.82% for the quarter ended September 30, 2023, and 3.02% for the 2023 fourth quarter ended December 31, 2023.

Loan Portfolio and Asset Quality
“F&M’s teams continue to do an excellent job managing our cost of funds, loan pricing, deposit growth and overall net interest margin. Since the quarter ended December 31, 2023, our yield on earning assets has increased by 34 basis points, compared to a 19 basis point increase in our cost of interest bearing liabilities – representing the third consecutive quarter our yield on earning assets has outpaced our cost of interest bearing liabilities. We expect this trend will continue as more of our loan portfolio reprices in 2024,” continued Mr. Eller.

Total loans, net at September 30, 2024, increased 0.3%, or by $8.7 million to $2.54 billion, compared to $2.53 billion at September 30, 2023. The year-over-year growth was driven by higher consumer real estate, commercial and industrial, and agricultural loans, partially offset by lower commercial real estate, agricultural real estate, and consumer loans.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $2.9 million, or 0.11% of total loans at September 30, 2024, compared to $22.4 million, or 0.89% of total loans at September 30, 2023, and $22.4 million, or 0.87% at December 31, 2023.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at September 30, 2024. In addition, F&M’s commercial real estate office credit exposure represented 5.3% of the Company’s total loan portfolio at September 30, 2024, with a weighted average loan-to-value of approximately 64% and an average loan of approximately $880,000.

F&M’s CRE portfolio included the following categories at September 30, 2024:

CRE Category	Dollar Balance		Percent of CRE Portfolio⁽^*)		Percent of Total Loan Portfolio⁽^*)

Industrial	$	274,953	21.1	%	10.8	%
Retail	$	237,622	18.2	%	9.4	%
Multi-family	$	223,926	17.2	%	8.8	%
Hotels	$	141,642	10.9	%	5.6	%
Office	$	134,973	10.4	%	5.3	%
Gas Stations	$	62,028	4.8	%	2.5	%
Food Service	$	46,526	3.6	%	1.8	%
Development	$	30,999	2.4	%	1.2	%
Senior Living	$	29,866	2.3	%	1.2	%
Auto Dealers	$	25,068	1.9	%	1.0	%
Other	$	93,557	7.2	%	3.7	%
Total CRE	$	1,301,160	100.0	%	51.3	%

* Numbers have been rounded

At September 30, 2024, the Company’s allowance for credit losses to nonperforming loans was 879.37%, compared to 112.61% at September 30, 2023, and 111.95% at December 31, 2023. The allowance to total loans was 1.01% at September 30, 2024, compared to 1.00% at September 30, 2023. Including accretable yield adjustments, associated with the Company’s recent acquisitions, F&M’s allowance for credit losses to total loans was 1.10% at September 30, 2024, compared to 1.18% at September 30, 2023.

Mr. Eller concluded, “With two months remaining in 2024, I am encouraged by F&M’s strong financial and operating performance to date. F&M ended the quarter with record stockholders’ equity, historically strong asset quality, record deposits, and excellent liquidity levels with over $635 million in contingent funding sources, and a cash-to-assets ratio of 7.2%. We remain focused on continual improvements, managing the items under our control, and providing our customers and communities with outstanding, and local financial services. As a result, F&M’s financial and operating performance continues to strengthen and I believe the Company is well positioned to create lasting value for our communities, customers, team members, and shareholders.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 10.6% to $335.4 million, or $24.48 per share at September 30, 2024, from $303.2 million, or $22.19 per share at September 30, 2023. The Company’s Tier 1 leverage ratio of 8.04%, remained stable compared to September 30, 2023.

Tangible stockholders’ equity increased to $242.8 million at September 30, 2024, compared to $208.8 million at September 30, 2023. On a per share basis, tangible stockholders’ equity at September 30, 2024, was $17.72 per share, compared to $15.28 per share at September 30, 2023.

For the nine months ended September 30, 2024, the Company has declared cash dividends of $0.66125 per share, which is a 5.0% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the nine months ended September 30, 2024, the dividend payout ratio was 50.99% compared to 49.50% for the same period last year.

About Farmers & Merchants State Bank:
Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) is the holding company of F&M Bank, a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in West Bloomfield, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME (Unaudited) (in thousands of dollars, except per share data)

	Three Months Ended														Nine Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023		September 30, 2023			September 30, 2024			September 30, 2023
Interest Income
Loans, including fees	$	36,873		$	36,593		$	35,200		$	34,493	$	33,783		$	108,666		$	94,851
Debt securities:
U.S. Treasury and government agencies		1,467			1,148			1,045			987		1,005			3,660			3,103
Municipalities		387			389			394			397		392			1,170			1,201
Dividends		334			327			333			365		246			994			517
Federal funds sold		7			7			7			8		6			21			36
Other		2,833			2,702			1,675			2,020		927			7,210			1,830
Total interest income		41,901			41,166			38,654			38,270		36,359			121,721			101,538
Interest Expense
Deposits		16,947			16,488			15,279			15,015		13,323			48,714			31,908
Federal funds purchased and securities sold under agreements to repurchase		277			276			284			293		349			837			1,181
Borrowed funds		2,804			2,742			2,689			2,742		2,741			8,235			6,134
Subordinated notes		284			285			284			285		284			853			853
Total interest expense		20,312			19,791			18,536			18,335		16,697			58,639			40,076
Net Interest Income – Before Provision for Credit Losses		21,589			21,375			20,118			19,935		19,662			63,082			61,462
Provision for Credit Losses – Loans		282			605			(289	)		278		460			598			1,420
Provision for Credit Losses – Off Balance Sheet Credit Exposures		(267	)		(18	)		(266	)		189		(76	)		(551	)		(143	)
Net Interest Income After Provision for Credit Losses		21,574			20,788			20,673			19,468		19,278			63,035			60,185
Noninterest Income
Customer service fees		300			189			598			415		248			1,087			917
Other service charges and fees		1,155			1,085			1,057			1,090		1,133			3,297			3,253
Interchange income		1,315			1,330			1,429			1,310		1,266			4,074			4,008
Loan servicing income		710			513			539			666		502			1,762			3,739
Net gain on sale of loans		215			314			107			230		294			636			469
Increase in cash surrender value of bank owned life insurance		265			236			216			216		221			717			618
Net loss on sale of available-for-sale securities		–			–			–			–		–			–			(891	)
Total noninterest income		3,960			3,667			3,946			3,927		3,664			11,573			12,113
Noninterest Expense
Salaries and wages		7,713			7,589			7,846			6,981		6,777			23,148			19,934
Employee benefits		2,112			2,112			2,171			1,218		2,066			6,395			6,302
Net occupancy expense		1,054			999			1,027			1,187		950			3,080			2,646
Furniture and equipment		1,472			1,407			1,353			1,370		1,189			4,232			3,652
Data processing		339			448			500			785		840			1,287			2,362
Franchise taxes		410			265			555			308		434			1,230			1,179
ATM expense		472			397			473			665		640			1,342			1,946
Advertising		597			519			530			397		865			1,646			2,209
Net (gain) loss on sale of other assets owned		–			(49	)		–			86		49			(49	)		49
FDIC assessment		516			507			580			594		586			1,603			1,388
Servicing rights amortization – net		219			187			168			182		106			574			429
Loan expense		244			251			229			246		241			724			809
Consulting fees		251			198			186			192		179			635			640
Professional fees		453			527			445			331		358			1,425			1,099
Intangible asset amortization		445			444			445			446		445			1,334			1,334
Other general and administrative		1,128			1,495			1,333			1,532		1,319			3,956			4,841
Total noninterest expense		17,425			17,296			17,841			16,520		17,044			52,562			50,819
Income Before Income Taxes		8,109			7,159			6,778			6,875		5,898			22,046			21,479
Income Taxes		1,593			1,477			1,419			1,332		1,121			4,489			4,235
Net Income		6,516			5,682			5,359			5,543		4,777			17,557			17,244
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		11,664			2,531			(1,995	)		13,261		(4,514	)		12,200			(2,480	)
Reclassification adjustment for realized loss on sale of available-for-sale securities		–			–			–			–		–			–			891
Net unrealized gain (loss) on available-for-sale securities		11,664			2,531			(1,995	)		13,261		(4,514	)		12,200			(1,589	)
Tax expense (benefit)		2,449			531			(418	)		2,784		(947	)		2,562			(333	)
Other comprehensive income (loss)		9,215			2,000			(1,577	)		10,477		(3,567	)		9,638			(1,256	)
Comprehensive Income	$	15,731		$	7,682		$	3,782		$	16,020	$	1,210		$	27,195		$	15,988
Basic Earnings Per Share	$	0.48		$	0.42		$	0.39		$	0.41	$	0.35		$	1.28		$	1.26
Diluted Earnings Per Share	$	0.48		$	0.42		$	0.39		$	0.41	$	0.35		$	1.28		$	1.26
Dividends Declared	$	0.22125		$	0.22		$	0.22		$	0.22	$	0.21		$	0.66125		$	0.63

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands of dollars, except per share data)

		September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
		(Unaudited)			(Unaudited)			(Unaudited)						(Unaudited)
Assets
Cash and due from banks		$	244,572		$	191,785		$	186,541		$	140,917		$	151,711
Federal funds sold			932			1,283			1,241			1,284			1,471
	Total cash and cash equivalents		245,504			193,068			187,782			142,201			153,182

Interest-bearing time deposits			2,727			3,221			2,735			2,740			2,989
Securities – available-for-sale			404,881			365,209			347,516			358,478			348,255
Other securities, at cost			15,028			14,721			14,744			17,138			16,995
Loans held for sale			1,706			1,628			2,410			1,576			1,039
Loans, net of allowance for credit losses of $25,484 9/30/24 and $25,024 12/31/23			2,512,852			2,534,468			2,516,687			2,556,167			2,504,329
Premises and equipment			33,779			34,507			35,007			35,790			31,723
Construction in progress			35			38			9			8			3,044
Goodwill			86,358			86,358			86,358			86,358			86,358
Loan servicing rights			5,644			5,504			5,555			5,648			5,687
Bank owned life insurance			34,624			34,359			34,123			33,907			33,691
Other assets			46,047			49,552			54,628			43,218			47,388

Total Assets		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229		$	3,234,680

	Liabilities and Stockholders’ Equity
Liabilities
Deposits
	Noninterest-bearing	$	481,444		$	479,069		$	510,731		$	528,465		$	505,358
	Interest-bearing
	NOW accounts		865,617			821,145			829,236			816,790			778,133
	Savings		661,565			673,284			635,430			599,191			591,344
	Time		676,187			667,592			645,985			663,017			700,445
	Total deposits		2,684,813			2,641,090			2,621,382			2,607,463			2,575,280

Federal funds purchased and securities sold under agreements to repurchase			27,292			27,218			28,218			28,218			30,527
Federal Home Loan Bank (FHLB) advances			263,081			266,102			256,628			265,750			266,286
Subordinated notes, net of unamortized issuance costs			34,789			34,759			34,731			34,702			34,673
Dividend payable			2,998			2,975			2,975			2,974			2,838
Accrued expenses and other liabilities			40,832			27,825			25,930			27,579			21,892
	Total liabilities		3,053,805			2,999,969			2,969,864			2,966,686			2,931,496

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value 20,000,000 shares authorized; issued
14,564,425 shares 9/30/24 and 12/31/23; outstanding 13,702,593			135,193			135,829			135,482			135,515			135,171
shares 9/30/24 and 13,664,641 shares 12/31/23
Treasury stock – 861,832 shares 9/30/24 and 899,784 shares 12/31/23			(10,904	)		(11,006	)		(10,851	)		(11,040	)		(11,008	)
Retained earnings			230,465			226,430			223,648			221,080			218,510
Accumulated other comprehensive loss			(19,374	)		(28,589	)		(30,589	)		(29,012	)		(39,489	)
	Total stockholders’ equity		335,380			322,664			317,690			316,543			303,184

Total Liabilities and Stockholders’ Equity		$	3,389,185		$	3,322,633		$	3,287,554		$	3,283,229		$	3,234,680

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES SELECT FINANCIAL DATA

	For the Three Months Ended															For the Nine Months Ended
Selected financial data	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023			September 30, 2024			September 30, 2023
Return on average assets		0.78	%		0.69	%		0.66	%		0.67	%		0.59	%		0.71	%		0.73	%
Return on average equity		7.93	%		7.13	%		6.76	%		7.27	%		6.26	%		7.28	%		7.52	%
Yield on earning assets		5.27	%		5.22	%		5.00	%		4.93	%		4.79	%		5.17	%		4.57	%
Cost of interest bearing liabilities		3.21	%		3.18	%		3.06	%		3.02	%		2.82	%		3.16	%		2.35	%
Net interest spread		2.06	%		2.04	%		1.94	%		1.91	%		1.97	%		2.01	%		2.22	%
Net interest margin		2.71	%		2.71	%		2.60	%		2.57	%		2.59	%		2.68	%		2.77	%
Efficiency		67.98	%		69.03	%		74.08	%		69.23	%		73.07	%		70.36	%		68.24	%
Dividend payout ratio		45.99	%		52.35	%		55.52	%		54.23	%		60.07	%		50.99	%		49.50	%
Tangible book value per share	$	17.72		$	16.79		$	16.39		$	16.29		$	15.28
Tier 1 leverage ratio		8.04	%		8.02	%		8.40	%		8.20	%		8.02	%
Average shares outstanding		13,687,119			13,681,501			13,671,166			13,665,773			13,650,823			13,679,955			13,633,101

Loans	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
(Dollar amounts in thousands)
Commercial real estate	$	1,301,160		$	1,303,598		$	1,304,400		$	1,337,766		$	1,304,118
Agricultural real estate		220,328			222,558			227,455			223,791			225,672
Consumer real estate		524,055			525,902			525,178			521,895			512,973
Commercial and industrial		260,732			268,426			256,051			254,935			250,891
Agricultural		137,252			142,909			127,670			132,560			123,735
Consumer		67,394			70,918			74,819			79,591			83,024
Other		25,916			26,449			26,776			30,136			31,083
Less: Net deferred loan fees, costs and other ⁽¹⁾		1,499			(1,022	)		(982	)		517			(1,890	)
Total loans, net	$	2,538,336		$	2,559,738		$	2,541,367		$	2,581,191		$	2,529,606


Asset quality data	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
(Dollar amounts in thousands)
Nonaccrual loans	$	2,898		$	2,487		$	19,391		$	22,353		$	22,447
90 day past due and accruing	$	–		$	–		$	–		$	–		$	–
Nonperforming loans	$	2,898		$	2,487		$	19,391		$	22,353		$	22,447
Other real estate owned	$	–		$	–		$	–		$	–		$	–
Nonperforming assets	$	2,898		$	2,487		$	19,391		$	22,353		$	22,447


Allowance for credit losses	$	25,484		$	25,270		$	24,680		$	25,024		$	25,277
Allowance for unfunded		1,661			1,928			1,946			2,212			2,023
Total Allowance for Credit Losses	$	27,145		$	27,198		$	26,626		$	27,236		$	27,300
Allowance for credit losses/total loans		1.01	%		0.99	%		0.97	%		0.97	%		1.00	%
Adjusted credit losses with accretable yield/total loans		1.10	%		1.10	%		1.11	%		1.13	%		1.18	%
Net charge-offs:
Quarter-to-date	$	68		$	15		$	55		$	531		$	93
Year-to-date	$	138		$	70		$	55		$	551		$	20
Net charge-offs to average loans
Quarter-to-date		0.00	%		0.00	%		0.00	%		0.02	%		0.00	%
Year-to-date		0.01	%		0.00	%		0.00	%		0.02	%		0.00	%
Nonperforming loans/total loans		0.11	%		0.10	%		0.76	%		0.87	%		0.89	%
Allowance for credit losses/nonperforming loans		879.37	%		1016.08	%		127.28	%		111.95	%		112.61	%
NPA coverage ratio		879.37	%		1016.08	%		127.28	%		111.95	%		112.61	%

⁽¹⁾ Includes carrying value adjustments of $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, $969 thousand as of March 31, 2024 and $2.7 million as of December 31, 2023 related to interest rate swaps associated with fixed rate loans


FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (in thousands of dollars, except percentages)

	For the Three Months Ended						For the Three Months Ended
	September 30, 2024						September 30, 2023
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,551,899	$	36,873	5.78	%	$	2,536,885	$	33,783	5.33	%
Taxable investment securities		415,943		2,107	2.03	%		393,910		1,559	1.58	%
Tax-exempt investment securities		19,661		81	2.09	%		23,986		84	1.77	%
Fed funds sold & other		197,258		2,840	5.76	%		85,515		933	4.36	%
Total Interest Earning Assets		3,184,761	$	41,901	5.27	%		3,040,296	$	36,359	4.79	%

Nonearning Assets		168,055						180,193

Total Assets	$	3,352,816					$	3,220,489

Interest Bearing Liabilities:
Savings deposits	$	1,538,387	$	10,691	2.78	%	$	1,367,168	$	7,673	2.24	%
Other time deposits		667,224		6,256	3.75	%		667,880		5,650	3.38	%
Other borrowed money		264,539		2,804	4.24	%		266,467		2,741	4.11	%
Fed funds purchased & securities sold under agreement to repurchase		27,481		277	4.03	%		34,128		349	4.09	%
Subordinated notes		34,769		284	3.27	%		34,654		284	3.28	%
Total Interest Bearing Liabilities	$	2,532,400	$	20,312	3.21	%	$	2,370,297	$	16,697	2.82	%

Noninterest Bearing Liabilities		491,851						544,801

Stockholders’ Equity	$	328,565					$	305,391

Net Interest Income and Interest Rate Spread			$	21,589	2.06	%			$	19,662	1.97	%

Net Interest Margin					2.71	%					2.59	%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts


	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2024						September 30, 2023
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate		Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,561,774	$	108,666	5.66	%	$	2,470,770	$	94,851	5.12	%
Taxable investment securities		397,466		5,575	1.87	%		396,917		4,544	1.53	%
Tax-exempt investment securities		20,684		249	2.03	%		24,865		277	1.88	%
Fed funds sold & other		165,227		7,231	5.84	%		67,869		1,866	3.67	%
Total Interest Earning Assets		3,145,151	$	121,721	5.17	%		2,960,421	$	101,538	4.57	%

Nonearning Assets		161,113						176,568

Total Assets	$	3,306,264					$	3,136,989

Interest Bearing Liabilities:
Savings deposits	$	1,487,809	$	30,291	2.71	%	$	1,373,110	$	18,854	1.83	%
Other time deposits		662,129		18,423	3.71	%		620,071		13,054	2.81	%
Other borrowed money		264,310		8,235	4.15	%		204,927		6,134	3.99	%
Fed funds purchased & securities sold under agreement to repurchase		27,887		837	4.00	%		37,649		1,181	4.18	%
Subordinated notes		34,741		853	3.27	%		34,625		853	3.28	%
Total Interest Bearing Liabilities	$	2,476,876	$	58,639	3.16	%	$	2,270,382	$	40,076	2.35	%

Noninterest Bearing Liabilities		507,843						561,001

Stockholders’ Equity	$	321,545					$	305,606

Net Interest Income and Interest Rate Spread			$	63,082	2.01	%			$	61,462	2.22	%

Net Interest Margin					2.68	%					2.77	%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES (in thousands of dollars, except percentages)

	For the Three Months Ended September 30, 2024													For the Three Months Ended September 30, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	36,873	5.78	%	$	36,149	5.67	%	$	724		0.11	%	$	33,783	5.33	%	$	32,631	5.15	%	$	1,152		0.18	%
Taxable investment securities		2,107	2.03	%		2,107	2.03	%		–		0.00	%		1,559	1.58	%		1,559	1.58	%		–		0.00	%
Tax-exempt investment securities		81	2.09	%		81	2.09	%		–		0.00	%		84	1.77	%		84	1.77	%		–		0.00	%
Fed funds sold & other		2,840	5.76	%		2,840	5.76	%		–		0.00	%		933	4.36	%		933	4.36	%		–		0.00	%
Total Interest Earning Assets		41,901	5.27	%		41,177	5.17	%		724		0.10	%		36,359	4.79	%		35,207	4.64	%		1,152		0.15	%

Interest Bearing Liabilities:
Savings deposits	$	10,691	2.78	%	$	10,691	2.78	%	$	–		0.00	%	$	7,673	2.24	%	$	7,673	2.24	%	$	–		0.00	%
Other time deposits		6,256	3.75	%		6,256	3.75	%		–		0.00	%		5,650	3.38	%		5,500	3.29	%		150		0.09	%
Other borrowed money		2,804	4.24	%		2,800	4.23	%		4		0.01	%		2,741	4.11	%		2,759	4.14	%		(18	)	-0.03	%
Federal funds purchased and securities sold under agreement to repurchase		277	4.03	%		277	4.03	%		–		0.00	%		349	4.09	%		349	4.09	%		–		0.00	%
Subordinated notes		284	3.27	%		284	3.27	%		–		0.00	%		284	3.28	%		284	3.28	%		–		0.00	%
Total Interest Bearing Liabilities		20,312	3.21	%		20,308	3.21	%		4		0.00	%		16,697	2.82	%		16,565	2.80	%		132		0.02	%

Interest/Dividend income/yield		41,901	5.27	%		41,177	5.17	%		724		0.10	%		36,359	4.79	%		35,207	4.64	%		1,152		0.15	%
Interest Expense / yield		20,312	3.21	%		20,308	3.21	%		4		0.00	%		16,697	2.82	%		16,565	2.80	%		132		0.02	%
Net Interest Spread		21,589	2.06	%		20,869	1.96	%		720		0.10	%		19,662	1.97	%		18,642	1.84	%		1,020		0.13	%
Net Interest Margin			2.71	%			2.62	%				0.09	%			2.59	%			2.46	%				0.13	%


	For the Nine Months Ended September 30, 2024													For the Nine Months Ended September 30, 2023
	As Reported				Excluding Acc/Amort				Difference					As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$			Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	108,666	5.66	%	$	106,588	5.55	%	$	2,078		0.11	%	$	94,851	5.12	%	$	92,364	4.99	%	$	2,487		0.13	%
Taxable investment securities		5,575	1.87	%		5,575	1.87	%		–		0.00	%		4,544	1.53	%		4,544	1.53	%		–		0.00	%
Tax-exempt investment securities		249	2.03	%		249	2.03	%		–		0.00	%		277	1.88	%		277	1.88	%		–		0.00	%
Fed funds sold & other		7,231	5.84	%		7,231	5.84	%		–		0.00	%		1,866	3.67	%		1,866	3.67	%		–		0.00	%
Total Interest Earning Assets		121,721	5.17	%		119,643	5.08	%		2,078		0.09	%		101,538	4.57	%		99,051	4.47	%		2,487		0.10	%

Interest Bearing Liabilities:
Savings deposits	$	30,291	2.71	%	$	30,291	2.71	%	$	–		0.00	%	$	18,854	1.83	%	$	18,854	1.83	%	$	–		0.00	%
Other time deposits		18,423	3.71	%		18,423	3.71	%		–		0.00	%		13,054	2.81	%		13,458	2.89	%		(404	)	-0.08	%
Other borrowed money		8,235	4.15	%		8,254	4.16	%		(19	)	-0.01	%		6,134	3.99	%		6,187	4.03	%		(53	)	-0.04	%
Federal funds purchased and securities sold under agreement to repurchase		837	4.00	%		837	4.00	%		–		0.00	%		1,181	4.18	%		1,181	4.18	%		–		0.00	%
Subordinated notes		853	3.27	%		853	3.27	%		–		0.00	%		853	3.28	%		853	3.28	%		–		0.00	%
Total Interest Bearing Liabilities		58,639	3.16	%		58,658	3.16	%		(19	)	0.00	%		40,076	2.35	%		40,533	2.38	%		(457	)	-0.03	%

Interest/Dividend income/yield		121,721	5.17	%		119,643	5.08	%		2,078		0.09	%		101,538	4.57	%		99,051	4.47	%		2,487		0.10	%
Interest Expense / yield		58,639	3.16	%		58,658	3.16	%		(19	)	0.00	%		40,076	2.35	%		40,533	2.38	%		(457	)	-0.03	%
Net Interest Spread		63,082	2.01	%		60,985	1.92	%		2,097		0.09	%		61,462	2.22	%		58,518	2.09	%		2,944		0.13	%
Net Interest Margin			2.68	%			2.59	%				0.09	%			2.77	%			2.64	%				0.13	%

Company Contact:	Investor and Media Contact:
Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

The MIL Network –

January 25, 2025

MIL-OSI Banking: The 28th ASEAN Labour Ministers’ Meeting convenes in Singapore

Source: ASEAN

Secretary-General of ASEAN, Dr. Kao Kim Hourn, participated in the 28th ASEAN Labour Ministers’ Meeting (ALMM) held in Singapore. Held under the theme “Strengthening Resilience and Promoting Innovation,” the Meeting exchanged views, reviewed the progress of the ASEAN Labour Ministers’ Work Programme 2021-2025 as well as deliberated on priorities for the post-2025 cooperation on labour. Singapore assumed the ALMM Chairmanship for 2024-2026. The Meeting was attended by ASEAN Member States, with Timor-Leste joined as observer.

The post The 28th ASEAN Labour Ministers’ Meeting convenes in Singapore appeared first on ASEAN Main Portal.

MIL OSI Global Banks –

January 25, 2025

MIL-OSI Banking: Trial Use of a Generative AI-based Demand Forecasting Application to Drive E-commerce Sales Growth in Southeast Asia

Source: Panasonic

Headline: Trial Use of a Generative AI-based Demand Forecasting Application to Drive E-commerce Sales Growth in Southeast Asia

Aiming to expand the direct-to-consumer (D2C) sales of Panasonic products with a focus on home appliances and consumer electronics in Southeast Asian markets, GDX Co., Ltd. (Head Office: Shinagawa-ku, Tokyo, CEO: Jun Horata, hereafter “GDX”) has developed a new application called AI Commerce Series 1 “Demand Forecast” in collaboration with Panasonic Appliances Marketing Asia Pacific (hereafter “PAPMAP”) based in Malaysia and affiliated with Panasonic Corporation (Head Office: Minato-ku, Tokyo, CEO: Masahiro Shinada, hereafter “Panasonic”), and began its trial use in Thailand.
AI Commerce Series 1 “Demand Forecast” is an application for demand prediction independently developed by GDX to maximize sales and streamline inventory control. Specifically, generative AI selects the scenario best suited for the situation from the predictions generated by AI based on 36 scenarios and outputs various demand forecast data in the format specified by users. PAPMAP has collaborated with GDX in application development to improve the accuracy of demand forecasting for e-commerce sales in Southeast Asia and to develop a user-friendly generative AI-based tool for its marketing staff without AI-related expertise.
In October 2024, a Panasonic sales company in Thailand (Panasonic Solutions (Thailand) Co., Ltd.) began the trial use of this new application to improve the accuracy of e-commerce sales forecasts for home appliances and consumer electronics. This will enable PAPMAP to predict future demand effortlessly and simply, without reliance on individual expertise, and to incorporate the forecast into product purchase planning by applying generative AI and machine learning to Panasonic’s sales-related data, thereby reducing the loss of sales opportunities. The company will start by expanding e-commerce sales in Thailand.
By contributing to Panasonic’s e-commerce sales through the use of advanced generative AI technology, GDX aims to open up new possibilities for D2C sales in Southeast Asian markets. PAPMAP will verify the effectiveness and usability of the application through trial use in Thailand and consider broadening the scope of collaboration in e-commerce sales with a view to expanding its use in the rest of Southeast Asia.
In order to support the DX promotion of brand companies’ entire value chain, GDX plans to establish a series of AI Commerce products as generative AI-based solutions and release them successively.

MIL OSI Global Banks –

January 25, 2025

MIL-OSI Banking: Kid Witness News (KWN) Global Summit 2024—Announcement of Award Results

Source: Panasonic

Headline: Kid Witness News (KWN) Global Summit 2024—Announcement of Award Results

Participating countries (11 countries)
Brazil, Cambodia, China, India, Indonesia, Japan, Malaysia, Philippines, United Arab Emirates, United States, Vietnam
* Presented in alphabetical order* Participants will be able to view a live stream of the summit on the day of the summit.

MIL OSI Global Banks –

January 25, 2025

MIL-OSI Economics: Result of the Overnight Variable Rate Reverse Repo (VRRR) auction held on October 30, 2024

Source: Reserve Bank of India

Tenor	1-day
Notified Amount (in ₹ crore)	75,000
Total amount of offers received (in ₹ crore)	35,525
Amount accepted (in ₹ crore)	35,525
Cut off Rate (%)	6.49
Weighted Average Rate (%)	6.49
Partial Acceptance Percentage of offers received at cut off rate	NA

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/1399

MIL OSI Economics –

January 25, 2025

MIL-OSI Asia-Pac: Opening address by Permanent Secretary for Financial Services and the Treasury (Financial Services) at ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia (English only) (with photo)

Source: Hong Kong Government special administrative region

Following is the opening address by the Permanent Secretary for Financial Services and the Treasury (Financial Services), Ms Salina Yan, at the ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia today (October 30):

Peter (Chief Executive Officer of the Asia Securities Industry & Financial Markets Association (ASIFMA), Mr Peter Stein), Boris (Managing Director, Head of Institutional Banking Group of DBS Bank (Hong Kong) Limited, Mr Boris Chan), distinguished guests, ladies and gentlemen,

     Good morning. It is my great pleasure to join you today at the 5th Annual Sustainable Finance Conference organised by ASIFMA. ASIFMA’s events always draw an inquisitive and enthusiastic crowd with a lot of brain power. Today is no exception, but perhaps with somewhat more seriousness than usual as we are addressing the serious topic of enabling transition finance in the sustainability pathway towards net zero carbon emissions.

     The seriousness is compounded when one reads the Asian Development Bank’s thematic report on “Asia in the Global Transition to Net Zero” published last year. According to the report, developing Asia accounted for 44 per cent of global greenhouse gas (GHG) emissions in 2019, and growth in the region still tends to rely substantially on emission-intensive activities. Obviously, there is a huge need for transition finance to assist heavy-emitting industries and economic activities to go down the path of net zero while managing economic development implications. Market estimates put the funding gap at over US$3 to 4 trillion in annual investment over the next three decades in the region. Policy trade-offs will certainly be involved in finding the right solutions.

     For this, I note a keyword in the topic of the Conference today and that is “enabling”. Hong Kong, being an international financial centre as well as a premier sustainable finance hub, is well-positioned to play important enabling roles in expediting Asia’s transition to net zero in an enabling or conducive environment.

     With well-functioning capital markets offering a wide range of investment products and an international pool of financial services professionals, Hong Kong can contribute to mobilising international capital to finance transition initiatives in the region. We are already doing so and enriching our ecosystem. For example, the number of ESG funds authorised by the Securities and Futures Commission (SFC) has increased significantly in recent years, with assets under management reaching close to US$170 billion as of June this year.

     The bond market also helps issuers raise sustainable financing in support of low-carbon transition efforts. The volume of green and sustainable bonds arranged in Hong Kong increased by about five times from around US$6 billion in 2019 to almost US$30 billion last year, topping the Asian market from 2021 to 2023. Among these, the Government Green Bond Programme has issued bonds of various tenors denominated in different currencies including RMB, euro and USD. The programme has recently been expanded to cover sustainable projects. The bonds issuances have been well received by institutional and retail investors alike, and have taken tokenisation form for two recent tranches.

     Two points specifically on transition finance:

(a) First, we published the first edition of the Hong Kong Taxonomy for Sustainable Finance in May this year to provide a clear set of definitions or classification of green activities for application by the industry in their green transition journey. It aligns with the two mainstream taxonomies of the Mainland and the European Union, and currently encompasses 12 economic activities under four sectors of power generation, transportation, construction, and water and waste management. The Taxonomy is now under the next phase development, where the scope of sectors and economic activities will be expanded to cover transition activities as well. The Hong Kong Monetary Authority (HKMA) plans to conduct a public consultation on the updated taxonomy prototype in the first half of 2025.

(b) Second, to cater for the increasingly significant need for transition finance in the region, we have expanded the scope of the Green and Sustainable Finance Grant Scheme to cover transition bonds and loans, helping to incentivise relevant industries in the region to make use of Hong Kong’s transition financing platform towards the decarbonisation mission. Since its inception in 2021 to mid-October this year, we have granted around $280 million to 470 green and sustainable debt instruments under the Scheme.

        Moving into another subject which is important to today’s topic, data clarity and transparency is often cited as one of the primary challenges hindering the development of transition finance. Hong Kong operates a highly open and internationalised market aligning with international standards and best practices. We stand ready to promote the adoption of data transparency in the market to facilitate and encourage more transition financing activities.

     Earlier this month, for example, the Hong Kong Code of Conduct for ESG Ratings and Data Products Providers was published by an industry working group sponsored by the SFC. Its aim is to establish and promote a globally consistent, interoperable, and proportionate voluntary code for providers offering ESG ratings and data products and services in Hong Kong. The Code was modelled on international best practices recommended by the International Organization of Securities Commissions (IOSCO). It is intended to enhance transparency of methodologies for ESG ratings and data products and improve standards generally across the market with a view to combating greenwashing and instilling integrity in the growing green and sustainable finance ecosystem.

     Another important measure on standards is our commitment to launch a roadmap on the full adoption of the ISSB Standards on sustainability disclosure within this year, leading Hong Kong to be among the first jurisdictions in the world to align its local requirements with ISSB Standards. The Hong Kong Institute of Certified Public Accountants has already issued the exposure drafts for consultation. I am sure they will come up with final Hong Kong standards aligning with the ISSB Standards soon. I know that the afternoon session of this Conference has scheduled a dedicated panel to dive deep into this subject. I will spare the detail here.

     Blended finance is an evolving concept and is quickly developing. An OECD (Organisation for Economic Co-operation and Development) report defines it as a combination of official development finance, private philanthropic funds and commercial finance where the principal purpose is commercial rather than development. I look forward to the Panel’s discussion on this. I would note here that as Asia’s primary asset and wealth management hub for international investors, Hong Kong is well placed to harness the finance power of the public and private sectors.

     On the home front, the HKMA launched last week the Sustainable Finance Action Agenda, setting out its goals and actions to be taken to further support green and sustainable financing needs in Asia and globally. Under the Agenda, one of the action areas is investment in a sustainable future, under which the HKMA aims to achieve net-zero emissions for the investment portfolio of the Exchange Fund by 2050 through continuing to actively expand the scope and variety of its sustainable investments, particularly those supporting the theme of climate transition across the public and private markets. The Exchange Fund will also deepen its focus on transition opportunities and mobilise stakeholders to actively support this effort through stewardship and engagement.

     Another emerging source of funds to support sustainable initiatives comes from philanthropy and impact investing of family offices. In Hong Kong, the philanthropic landscape is underscored by the existence of more than 10 000 charities that have been established in Hong Kong, reflecting a diverse and robust ecosystem of giving. Meanwhile, the global impact investing market, valued at about US$1.6 trillion, attaches growing recognition of the need to address critical challenges such as climate change. We have seen growing interest from family offices in impact investing as they do not just allocate funds for charitable purposes but also seek financial returns and measurable social outcomes. To this end, we will soon consult the industry on proposals to enhance the tax arrangements for funds and single family offices, including expanding the definition of “fund” to cover pension fund and endowment fund, and include emission derivatives and emission allowance as eligible exemption items.

     Added to this, Hong Kong is exceptionally well placed to serve the sustainable initiatives and transition needs of entities on the Mainland. Various Mainland local governments including Shenzhen, Hainan Province and Guangdong Province have issued offshore RMB local government bonds including green, blue, sustainability and social bonds in Hong Kong over the past few years. And Core Climate, our carbon credit marketplace, is exploring co-operation initiatives with its Mainland counterparts. We will certainly contribute our best to the country’s drive to achieve the goal of peaking carbon emissions by 2030 and reaching net zero by 2060.

     Ladies and gentlemen, all these being said, a lot remains to be done. Hong Kong takes our 2050 net zero commitment very seriously and has set up a high-level steering committee comprising policy bureaux with both environmental protection and financial services policy responsibilities, and all financial regulators to co-ordinate and take forward relevant initiatives. Our Financial Secretary is also chairing the Green Technology and Finance Development Committee. We look forward to having your advice and participation in the journey. On this note, I wish you all a rewarding day at the Conference today. Thank you.

MIL OSI Asia Pacific News –

January 25, 2025

MIL-OSI: Quadient secures €25 million Schuldschein facility from EBRD to finance R&D programs in Czech Republic

Source: GlobeNewswire (MIL-OSI)

Quadient secures €25 million Schuldschein facility from EBRD
to finance R&D programs in Czech Republic

Paris, October 30, 2024

Quadient S.A. (Euronext Paris: QDT), a global automation platform powering secure and sustainable business connections, today announces that it has secured a new €25 million Schuldschein facility from the European Bank of Reconstruction and Development (EBRD) to finance R&D programs in Czech Republic.

The Schuldschein loan from the EBRD is for a total nominal amount of €25 million with maturities spread equally between 5 and 7 years. The new credit facility aims at financing R&D programs at Quadient’s state of the art R&D center in Hradec Králové, Czech Republic.

Quadient’s R&D center in Czech Republic is the Company’s hub for its Digital automation platform development. It currently hosts around 400 employees, including software developers, testers, IT consultants, trainers and UX designers. The R&D team is responsible for driving continuous improvements to Quadient software offerings and developing innovative Digital solutions, by leveraging advanced technologies such as Artificial Intelligence, complex frameworks, and programming languages. A strong focus is placed on fostering continuous learning and collaboration by partnering with local schools and universities to train future engineers and developers. Notably, Quadient regularly collaborates with the University of Hradec Králové, offering classes, organizing IT events, and hosting BarCamps on new technologies.

In addition to the headquarters in Hradec Králové, Quadient also has offices established in Olomouc and Ostrava in the Czech Republic. This strong presence in the Královéhradecký region is well recognized locally as Quadient Czech Republic has been named Employer of the Year for several consecutive years and recently achieved 4^th place nationally.

Laurent du Passage, Chief Financial Officer of Quadient, said: “We are pleased to be partnering with the EBRD to strengthen our R&D activities in Czech Republic. Our R&D center in Hradec Králové is central to Quadient’s Digital strategy and plays a key role in the local community. We are excited to be able to further enhance our development capabilities while maintaining our leadership in the field of innovation and Artificial Intelligence, continuing to offer best in class solutions to our customers.”

In the full-year 2023, Quadient dedicated a total of €63.2 million to R&D spending across its three automation platforms, representing 5.9% of its Group revenue.

About Quadient®

Quadient is a global automation platform provider powering secure and sustainable business connections through digital and physical channels. Quadient supports businesses of all sizes in their digital transformation and growth journey, unlocking operational efficiency and creating meaningful customer experiences. Listed in compartment B of Euronext Paris (QDT) and part of the CAC® Mid & Small and EnterNext® Tech 40 indices, Quadient shares are eligible for PEA-PME investing.

For more information about Quadient, visit https://invest.quadient.com/en/

Contacts

About EBRD

The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 73 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive, well governed, green, inclusive, resilient and integrated.

Attachment

Quadient EBRD loan vGB

The MIL Network –

January 25, 2025

MIL-OSI Economics: Q&A: Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP)

Source: Asia Development Bank

Article | 30 October 2024
Read time: 6 mins

IF-CAP is the first leveraged guarantee mechanism for climate finance to ever be adopted by a multilateral development bank.
Various simulations have shown that for every $1 that is guaranteed, up to $4.5 of new climate finance will be generated under IF-CAP’s mechanism.
IF-CAP will strengthen ADB’s developing member countries’ capacity to develop their low-carbon and climate-resilient strategies and build a larger pipeline of potential investments.

What is IF-CAP?

The Innovative Finance Facility for Climate in Asia and the Pacific, or IF-CAP, is a multi-donor financing partnership facility with the goal of scaling-up finance for accelerated action against climate change in Asia and the Pacific. IF-CAP partners will provide guarantees for parts of ADB’s sovereign loan portfolios to enable ADB to free up capital to increase lending for climate investments. Supplementary grants will facilitate project preparation, capacity building, and knowledge solutions.

Why is IF-CAP being formed?

The battle against climate change will be won or lost in Asia and the Pacific. And our region is uniquely vulnerable to the impacts. More than 40% of climate-related disasters occurred in Asia and the Pacific since the start of the century, affecting nearly 3.6 billion people. ADB estimates that $1.7 trillion per year will need to be invested in infrastructure in developing Asia between 2016-2030 to meet both climate and development goals. The Intergovernmental Panel for Climate Change (IPCC) says the year 2030 is a significant crossroad after which it will become considerably harder to meet climate targets.

As Asia and the Pacific’s climate bank, the Asian Development Bank is spearheading significant climate change financing and expertise across the region. IF-CAP is the first leveraged guarantee mechanism for climate finance to ever be adopted by a multilateral development bank. It is inspired by the International Finance Facility for Education (IFFEd), which aims to use innovative financing to unlock new education funding in low-and middle-income countries.

What will IF-CAP do?

IF-CAP will allow ADB to significantly increase climate finance for investments that are aligned with the Paris Agreement and other key ADB policies, including the forthcoming Climate Change Action Plan.

With a model of “$1 in, $4.5 out”, IF-CAP’s current guarantee size of $2.5 billion will create over $11 billion in climate finance for much-needed climate projects across Asia and the Pacific. Alongside lending facilitated by IF-CAP, ADB will provide up to $1 billion in concessional ordinary capital resources lending (COL) from its own resources, in support of projects enabled by IF-CAP’s guarantee structure. In total, resources aligned with IF-CAP amount to over $12 billion.

IF-CAP enabled projects will address both climate change mitigation, which focuses on reducing greenhouse gas emissions, and climate change adaptation, which focuses on building resilience to the worsening effects of climate change. These investments could cover a wide range of sectors, such as transportation, energy, urban, and agriculture and natural resources, as well as social sectors such as health and education, for projects with high climate impacts.

What will IF-CAP not do?

IF-CAP will not support new or existing fossil fuel-based electricity generation facilities or dedicated transmission, or any new or existing natural gas-related projects. Climate finance enabled by IF-CAP will not be used towards early retirement or repurposing of fossil fuel fired power plants.

Developing Asia’s share of global greenhouse gas emissions nearly doubled, from 22% in 1990 to 44% in 2019 and is expected to remain at this level until mid-century under current policies.
Asia and the Pacific can only realize its climate goals if it pursues a transition away from coal-based energy in the near term.

How does the leverage mechanism work?

The program is based on the use of financial guarantees from our partners. By guaranteeing a portfolio of ADB sovereign loans on a first-loss basis, they will help shoulder some of the loss in case of a default by one of our borrowers included in our portfolio.

This is a groundbreaking arrangement because IF-CAP’s portfolio guarantee enables ADB to optimize the usage of our balance sheet, supported by the strength of our triple-A credit ratings and preferred creditor status. This allows ADB to reduce the capital held for credit risk and release more capital for climate loans. Every dollar of guarantee into IF-CAP will result in the capacity to provide more climate finance for eligible projects. Simulations show that for every $1 that is guaranteed, $4.5 of climate finance could be generated. That is a fundamental shift from the traditional “one dollar in, one dollar out” facilities at MDBs, because of IF-CAP’s leverage effect.

Who are the partners supporting IF-CAP?

IF-CAP’s founding partners are Denmark, Japan, Norway, Republic of Korea, Sweden, the United Kingdom, and the United States. In 2023, the Global Energy Alliance for People and Planet established a trust fund under the IF-CAP Financing Partnership Facility.

What sovereign portfolios will their guarantees cover?

IF-CAP will cover a dynamic and diversified reference portfolio consisting of ADB’s exposures to a board spectrum of developing member countries, which have been identified to achieve the desired leverage based on the risk appetite of the partners.

Which countries are eligible for IF-CAP financing?

All ADB’s developing member countries (DMCs) are eligible. Individual financing partners may exercise discretion for certain projects based on their policies and priorities.

Will IF-CAP differ from ADB’s regular climate financing?

Functionally, there will be no difference. IF-CAP’s role will be to enable ADB to approve climate financing more quickly and at a higher volume.

What are the benefits of IF-CAP?

For DMCs, IF-CAP can help them advance operations with high climate ambition that are currently not in their pipeline, increase climate finance components of existing pipeline projects, and enable greater visibility and demonstration effects for projects including those with innovative components or high climate impact.

For IF-CAP partners, it can enable them to make a greater impact through a leveraged guarantee mechanism not offered by other financing partnership facilities, providing them with an effective and efficient way to fight climate change in support of their national commitments.

For ADB, IF-CAP is an innovative method to optimize our balance sheet, unlock capital resources, and increase our lending capacity by over $11 billion so we can make more resources available for critical climate projects in Asia and the Pacific.

Will IF-CAP contribute to ADB’s ambition of $100 billion climate financing for 2019-2030?

IF-CAP will be one of the flagship instruments to enable ADB to reach its climate finance target beyond $100 billion and support our target for climate finance to reach 50% of the total committed financing volume by 2030.

MIL OSI Economics –

January 25, 2025

MIL-OSI: Sydbank’s Interim Report – Q1-Q3 2024

Source: GlobeNewswire (MIL-OSI)

Company Announcement No 51/2024
30 October 2024

Sydbank’s Interim Report – Q1-Q3 2024

Bigger Sydbank – new 3-year strategy plan
On the back of the highly satisfactory results achieved during the present strategy period, which will expire at the end of 2024, Sydbank is announcing today a new 3-year strategy plan to ensure that the Bank will continue the positive momentum demonstrated since 2014. The strategy is called: “Bigger Sydbank – value for all through advice and relationships”.

Q1-Q3 2024 – highlights

Profit for the period of DKK 2,396m equals a return on equity of 21.7% p.a. after tax
Core income of DKK 5,447m is 4% higher compared to the same period in 2023
Trading income of DKK 223m compared to DKK 240m in the same period in 2023
Costs (core earnings) of DKK 2,453m compared to DKK 2,335m in the same period in 2023
Core earnings before impairment of DKK 3,217m are 3% higher compared to the same period in 2023
Impairment charges for loans and advances etc represent an expense of DKK 87m
Bank loans and advances have risen by DKK 8.0bn, equal to an increase of 11% compared to year-end 2023
The CET1 ratio stands at 18.0%, equal to a decrease of 0.9pp compared to year-end 2023

CEO Mark Luscombe comments on the result:

It is positive that we were able to lift core income and total income in the first 9 months of the year from their all-time high levels last year. Costs have risen by 3% – excl Coop Bank – compared with a year ago. Thanks to the Bank’s constant focus on becoming increasingly efficient, the increase in costs is smaller than the effects of the agreed overall pay rises and the abolition of Great Prayer Day. Profit for the first 9 months of the year is on the same level as that of the record year 2023 and equals a return on equity of 21.7%, which is highly satisfactory.

Mark Luscombe comments on developments in business volume:

We are pleased that the continued effect of our strong focus on providing value-creating advice to our customers has boosted our business volume in terms of bank loans and advances, deposits and the investment area. Bank loans and advances constitute DKK 82.5bn – an increase of DKK 8.0bn during the period. Deposits make up DKK 114.8bn – – and are thus at a historically all-time high.

Board chairman Lars Mikkelgaard-Jensen comments on Sydbank’s new 3-year strategy plan:
As a natural next step for the current strategy “Growing our business” we will be raising the bar and we will create a Bigger Sydbank in the next strategy period. This means that we will maintain our starting point as Denmark’s Corporate Bank and increase our market share in the corporate segment. Our ambition is to have more satisfied retail clients and significantly more retail clients and Private Banking clients. Assets under management will increase as a result of our customer focus within Wealth Management.

Mark Luscombe elaborates:
Our strategy “Bigger Sydbank” centres on 5 themes: “Customer-focused”, “Bigger and efficient”, “Attractive and cooperating”, “Data, digitization, AI and security”, and “ESG integrated in core business”. The themes must go hand in hand with a level of profitability at the very top of the Danish banking industry. We will continue to focus on the customer and be the workplace for some of the industry’s brightest and most dedicated employees.

Outlook for 2024

Moderate growth is projected for the Danish economy.
Profit after tax is expected to be in the range of DKK 2,800-3,100m.
The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors which may affect eg the level of impairment charges.

Additional information
Jørn Adam Møller, Deputy Group Chief Executive, Tel +45 74 37 20 30
Lars Grubak Lohff, Press Manager Tel +45 20 31 54 65

Attachments

The MIL Network –

January 25, 2025

MIL-OSI Africa: Islamic Corporation for the Development of the Private Sector (ICD) Commits Eur 40 Million to Nakkas- Basaksehir Section of Türkiye’s Northern Marmara Highway Project

Source: Africa Press Organisation – English (2) – Report:

ISTANBUL, Turkey, October 30, 2024/APO Group/ —

ICD is investing EUR 40 million in the Nakkaş-Başakşehir section as part of a EUR 1.04 billion funding package.
The project incorporates solar energy and LED lighting, aiming to cut energy use and emissions significantly.
It’s backed by a consortium led by Rönesans Holding, with support from MDBs and ECAs.

The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org) has signed a EUR 40 million to co-finance the Nakkaş-Başakşehir section of Türkiye Northern Marmara Highway Project.

The Project aimes to enhance Istanbul’s east-west connectivity, improve road safety and reduce congestion. It is being developed under a build-operate-transfer agreement by a consortium led by Rönesans Holding A.Ş. in partnership with Samsung C&T Corporation and other Korean investors. It involves a 31.3-km toll road, including a 1.6-km cable-stayed bridge and multiple overpasses and underpasses.

ICD’s EUR 40 million contribution is part of a broader EUR1.04 billion senior debt package, fully financed by international institutions, including the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), the Islamic Development Bank (IsDB), alongside Atradius and SERV as European export credit agencies, ICIEC, and a consortium of commercial lenders.

Thanks to Solar Energy Production System to be installed within the scope of the Nakkaş-Başakşehir project, which has “sustainability” at the center of its design, the clean energy obtained from solar panels will meet the energy needs of the highway’s operation and management (O&M) center and service stations.

The installation of over 4,500 LED lamps, replacing sodium lamps, will cut energy consumption by 37.5%, saving over 35 MWh. Within the scope of the project, in which all O&M highway vehicles are planned to be hybrid or electric, it is expected to save approximately 112 thousand liters of fuel annually.

While the Nakkaş-Başakşehir Highway Project is expected to prevent 7.9 million tons of greenhouse gas (GHG) emissions in 30 years, in particular, it will reduce particulate matter (PM) emissions by 1,399 tons, nitrogen oxides (NOx) by 58,699 tons and sulfur dioxide (SO2) by 95 tons. tons reduction is aimed.

MIL OSI Africa –

January 25, 2025

MIL-OSI Submissions: GAZA – Israeli UNRWA ban will deepen Palestinian humanitarian catastrophe – MSF

Source: Médecins Sans Frontières/Doctors Without Borders (MSF)

30 October, 2024. The Israeli Knesset’s ban on UNRWA’s operations voted on 28 October represents a devastating blow to Palestinian life. It will further undermine people’s survival prospects in Gaza and heavily impact communities in the West Bank.

Médecins Sans Frontières/Doctors Without Borders (MSF) denounces this legislation, which represents an inhumane ban on vital humanitarian aid. The Knesset’s vote is propelling Palestinians towards an even deeper humanitarian crisis. It is imperative that the world acts to safeguard Palestinians’ fundamental rights. Immediate international intervention is needed to pressure Israel to allow unhindered access to humanitarian aid, implement a ceasefire and bring to an end the current campaign of destruction in Gaza.

“UNRWA is a lifeline for Palestinians,” says Christopher Lockyear, MSF Secretary General. “If implemented, the ban on UNRWA’s activities would have catastrophic implications on the dire humanitarian situation of Palestinians living in Gaza, as well as in the West Bank, now and for generations to come. We strongly condemn this decision, which is the culmination of a long-running campaign against the organisation.”

The newly voted legislation will make it almost impossible for UNRWA to work in Gaza or the West Bank; coordination with Israeli authorities will be impeded and entrance permits to either of the occupied territories will be denied, and essentially blocking delivery of UNRWA aid into and within Gaza. UNRWA handles almost all the distribution of UN aid coming into the strip.

UNRWA is the largest health provider in Gaza, with over half of Gazans relying on UNWRA for essential healthcare services, including for the treatment of chronic diseases, maternal and child heath, and vaccinations; each day UNWRA’s health teams provide over 15,000 consultations in the Gaza Strip. The ban of its activities threatens to create a vast gap in services within an already largely destroyed health system in Gaza – directly and indirectly endangering the lives of Palestinians. Without urgent action, more Gazans could die from preventable diseases and displacement-related conditions.

The impact of UNRWA’s ban will extend beyond Gaza. Critical services, including refugee camp management, health services, education, and social programmes across the West Bank are also at risk of destabilisation under this legislation. This legislation sets a grave precedent for other conflict situations where governments may wish to eliminate an inconvenient United Nations presence.

For months, international leaders and organisations, including MSF, have raised warnings about the disastrous potential of these newly adopted bills. Yet Israel has chosen to press forward with measures that will undermine vital assistance, endangering Palestinian lives and intensifying the collective punishment they face.

This vote adds to the endless physical and bureaucratic impediments imposed by Israel to limit the amount of aid reaching Gaza, and blatantly contradicts Israel’s claims that it is facilitating humanitarian assistance into the Strip.

MSF Australia was established in 1995 and is one of 24 international MSF sections committed to delivering medical humanitarian assistance to people in crisis. In 2022, more than 120 project staff from Australia and New Zealand worked with MSF on assignment overseas. MSF delivers medical care based on need alone and operates independently of government, religion or economic influence and irrespective of race, religion or gender. For more information visit msf.org.au

MIL OSI – Submitted News –

January 25, 2025

MIL-OSI United Kingdom: Species Survival Fund: New four-legged friends arrive at Shire Brook Valley Rainbow Meadow in Shire Brook Valley is now home to a host of new four-legged friends as we see the arrival of Highland cows and Dexter cows. The introduction of the cows forms part of Sheffield City Council’s Species Survival Fund which aims to protect, enhance and widen areas of heathland, and it will help to manage and create areas of meadow. 30 October 2024

Source: City of Sheffield

[embedded content]

Rainbow Meadow in Shire Brook Valley is now home to a host of new four-legged friends as we see the arrival of Highland cows and Dexter cows.

The cows have been brought to the meadow to graze which will help manage the field naturally , creating open spaces for wildflowers to grow and preventing brambles from taking over the meadow.

As well as grazing, through moving and walking around the field this will create and maintain the open spaces. Sheffield City Council has welcomed the cows to maintain the land in a great condition, in between woodland and open grassland.

Locals are welcome and encouraged to come down and view the cows from the gate but should not climb the gate as there is a risk of injury from livestock. Dogs are not permitted to be in the field.

The introduction of the cows forms part of Sheffield City Council’s Species Survival Fund which aims to protect, enhance and widen areas of heathland, and it will help to manage and create areas of meadow, benefitting species of flora such as orchids and invertebrates such as dragonflies.

The Council’s Species Survival Fund was awarded more than £1million from The National Lottery Heritage Fund, as well as being supported by funding from partners and other organisations, totalling almost £400,000.

These include National Grid, The Environment Agency, South Yorkshire Sustainability Centre, Sheffield Hallam University, Yorkshire Water, Friends of Richmond Park and the South Yorkshire Badger Group.

The mix of habitats are particularly important conserve in the area for invertebrate, fungi, birds and wildflowers – the diversity of which will fall if the site is allowed to become dominated by trees.

Areas the project will cover:

Shire Brook Valley Nature Reserve
Beighton Marsh
Woodhouse Washlands
Wickfield Heath & Plantation
Richmond Park
Silkstone Ravine (part of Birley Spa)

The project will improve sites covering a total area of 449.5 acres. The project will involve conservation management, woodland works to open sightlines, creation of leaky dams and new areas of wet woodland, removing 1/3 of the silt and Typha from a former mill pond, creating ditches and hedgerows, and removal of invasive species.

Species the fund will support include mice, bats, reptiles, amphibians (including toads and newts), birds such as swifts, house martins, skylarks, barn owls and kingfishers.

Patrick Gray, Grazing Co-ordinator at Wild Sheffield, said:

“We now have 18 cows on Rainbow Meadow including 17 Dexter Cows and one Highland Cow.

“The lack of grazing over the past few years has led to the meadow being overrun with brambles and scrub. The objective of the grazing is to maintain the site as a woodland pasture, which consists of a mix of veteran trees, young trees, and open grassland.

“This is a pilot scheme, and in the future plan to have grazing at Sally Clark Meadow across the lane, and at Linley Bank.”

The current plan of winter grazing is to remove the build-up of vegetation on the pasture so that ideal conditions are created for spring when all the interesting and colourful wildflowers begin to germinate.

Wild Sheffield, in partnership with Sheffield City Council, would like to set up a volunteer scheme for members of the public to assist in keeping an eye on the cows, reporting any sick or injured or escaped animals.

If you want to find out more about how you can get involved, please email Patrick Gray from Wild Sheffield for more details p.gray@wildsheffield.com.

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Banking: Secretary-General of ASEAN meets with Minister of Labour and Vocational Training of the Kingdom of Cambodia

Source: ASEAN

Secretary-General of ASEAN, Dr. Kao Kim Hourn, this afternoon met with Minister of Labour and Vocational Training of Cambodia, H.E. Heng Sour, on the sidelines of the 28th ASEAN Labour Ministers’ Meeting (ALMM), on 30 October 2024, in Singapore. They exchanged views on the follow-up actions to the ASEAN Guidelines on Portability of Social Security Benefits for Migrant Workers in ASEAN, which was championed by Cambodia and adopted by the ALMM this year. Dr. Kao expressed the ASEAN Secretariat’s readiness to fully support Cambodia-led regional initiatives as well as that of other ASEAN Member States in order to advance social protection for all workers and to strengthen resilience and competencies of workforce in the region.

The post Secretary-General of ASEAN meets with Minister of Labour and Vocational Training of the Kingdom of Cambodia appeared first on ASEAN Main Portal.

MIL OSI Global Banks –

January 25, 2025

MIL-OSI Banking: Future of IVD hinges on three big industry themes, says GlobalData

Source: GlobalData

Future of IVD hinges on three big industry themes, says GlobalData

Posted in Medical Devices

In vitro diagnostics (IVD) is driving a new age shift in healthcare, fueled by advances in medical technology (medtech). These innovations are revolutionizing how diseases are detected, monitored, and managed. At the recent AdvaMed’s MedTech Conference in Toronto, digital and artificial intelligence (AI) integration, point-of-care (POC) testing, and novel biomarkers were emphasized as important tools in improving the precision and accessibility of medical care. The focus on these innovations will support disease detection, enable earlier diagnosis, personalized treatments, improve patient outcomes, and expand healthcare access, according to GlobalData, a leading data and analytics company.

Expert speakers at the conference this year emphasized the need to bridge the gap between patients and healthcare. Manufacturers like Hologic focused on the lack of cytologists, which leads to delays in cervical cancer screening. To address this, they created an AI-led platform that streamlines and identifies abnormal cell samples to save cytologists’ time.

Other companies like Solventum and GE Healthcare highlighted that AI can be utilized as an administration tool by helping medical professionals with patient notes and documentation, manufacturer inventory management, managing waste in manufacturing factories, and improving customer product delivery. The main factors considered for improving medical care are, how can we serve patients better, maximize healthcare professional (HCP) time and expertise, and doing all this with existing regulations.

Selena Yu, Senior Medical Analyst, at GlobalData, comments: “Decentralized testing is the key to improving patient access to care, detecting diseases earlier, and monitoring patients. These POC tests include over the counter (OTC) tests, direct-to-consumer (DTC) tests, and tests done at patient side, which are typically performed by non-HCPs. The seminar speakers stressed the ongoing issue of healthcare “deserts” and how expanding alternate care outside of doctor offices is crucial to reach these at-risk populations.”

The lack of reimbursement for POC tests remains a significant barrier, even though access to care is improved when individuals can buy STI tests at local pharmacies. Without reimbursement, however, this convenience adds another layer of inaccessibility. The overall goal for increased decentralized testing is to bridge the gap between patients and healthcare systems so that more individuals are aware of their health status.

Moreover, experts in the IVD sector—including manufacturers, laboratories, and investors—highlighted key markets for future growth at AdvaMed’s MedTech Conference. The major focus areas included women’s health, neurology, autoimmunity, minimal residual disease, sepsis, and cancer screening especially liquid biopsy. Both speakers and attendees stressed the importance of clinical utility in developing IVDs, emphasizing the need for test results to be actionable, for appropriate actions to be taken based on those results, and for these actions to ultimately improve patient outcomes.

Yu concludes: “Innovation in IVD is growing particularity in digital and AI integration into healthcare, POC testing, and novel biomarkers. This will aid in disease detection, monitoring, and management, enabling earlier diagnosis, personalized treatments, improving patient prognosis, and increasing patient access to healthcare.”

MIL OSI Global Banks –

January 25, 2025

MIL-OSI Africa: Zambia: African Development Bank’s Sustainable Energy Fund for Africa approves $8 million for development of 25 MW Solar Plant

Source: Africa Press Organisation – English (2) – Report:

ABIDJAN, Ivory Coast, October 30, 2024/APO Group/ —

The African Development Bank Group’s (www.AfDB.org) Board of Directors has approved an $8 million concessional loan to support the construction of a 25MW Solar Photovoltaic power plant in Zambia. The financing for the Ilute Plant will be sourced from the Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by the Bank. Ilute is expected to advance Zambia’s sustainable development and help the country unlock its renewable energy potential.

The venture has faced rising costs associated with the COVID-19 pandemic and other challenges. Serengeti Energy Ltd (http://apo-opa.co/4hth8dE) and Western Solar Power Ltd (http://apo-opa.co/3YJBxUr) are leading the plant development in Zambia’s Sesheke District. Competitively selected by GreenCo Power Services Ltd (GreenCo) (http://apo-opa.co/4hiM3ci), this project will serve as a pilot for GreenCo’s energy aggregator model under the Zambia Electricity Supply Corporation Limited (ZESCO) (http://apo-opa.co/3YIpw1h) open grid access framework. Acting as an intermediary off-taker, GreenCo will purchase the generated electricity through a 25-year Power Purchase Agreement and sell it to the Southern African Power Pool Day-Ahead Market (http://apo-opa.co/3YELlih).

“We are delighted to support the Ilute Solar PV project – which will be the first project to use Africa GreenCo as an intermediate off-taker. SEFA’s support has been instrumental in bridging the financing gap and will pave the way for future projects that contribute to Southern Africa’s energy transition,” said Dr Daniel Schroth, African Development Bank Director for Renewable Energy and Energy Efficiency.

Anton-Louis Olivier, CEO of Serengeti Energy, acknowledged SEFA’s support. He said, “We appreciate the support from the African Development Bank Group and SEFA in helping us move the Ilute 25MW Solar PV project forward. This loan addresses the financial challenges we’ve faced due to the pandemic and rising costs. The Ilute project is a testament to innovative collaboration and serves as a pioneering model for future renewable energy initiatives in Zambia as well as the wider region.” Serengeti Energy is a leading renewable independent power producer specialising in the development, construction, and operation of utility-scale renewable energy plants tailored to the needs of both public and private off-takers.

MIL OSI Africa –

January 25, 2025

MIL-OSI: Banco Santander-Chile Announces Third Quarter 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

SANTIAGO, Chile, Oct. 30, 2024 (GLOBE NEWSWIRE) — Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its results¹ for the nine-month period ended September 30, 2024, and third quarter 2024 (3Q24).

ROAE²of 23.1% in 3Q24³and 18.2% in 9M24⁴.

In the third quarter of 2024 (3Q24), the Bank’s net income attributable to shareholders totaled $243,133 million ($1.29 per share and US$ 0.58 per ADR), reflecting an increase of 11.7% compared to the previous quarter (2Q24), with an ROAE of 23.1%.

As of September 30, 2024, the Bank’s net income attributable to shareholders totaled $581.109 billion ($3.08 per share and US$1.37 per ADR), reflecting an increase of 81.9% compared to the same period of the previous year and with an ROAE of 18.2%.

The increase in results in the quarter is explained by an increase in the Bank’s main income lines, with operating income increasing by 6.3% in the quarter, driven by a better interest margin and readjustments.

Strong recovery of NIM⁵to 3.9% in 3Q24 and 3.4% in 9M24.

Net interest and readjustment income (NII) accumulated as of September 30, 2024 increased by 74.8% compared to the same period in 2023. This increase in NII was due to higher interest income due to improvements in the cost of funds resulting from a lower monetary policy rate, partially offset by lower readjustment income due to lower inflation in the period.

In 3Q24, total net interest and readjustment income increased by 4.2% compared to 2Q24. This is explained by higher net interest income due to lower funding costs and better investment portfolio performance, offset by lower net readjustment income due to lower UF variation in the quarter.

Net fees increase 8.3% in the quarter, reaching recurrence⁶levels of 63.4%.

Net fees increased 8.3% QoQ due to increased customer numbers and greater use of products such as mutual funds, cards and current accounts. With this, the recurrence ratio (total net fees divided by total core expenses) is 63.4% in 3Q24, demonstrating that more than half of the Bank’s expenses are financed by fees generated by our customers.

In the nine months to September 30, 2024, fees increased by 5.4% compared to the same period in 2023, mainly due to higher fees from current accounts, mutual fund brokerage and Getnet. This was partially offset by the impact of interchange fee regulation.

Getnet’s customer base continues to grow and its expansion continues

As a result of our strategy to strengthen digital products, the Bank’s market share in current accounts remains strong. According to the latest publicly available information, which is as of July 2024, our market share reaches 23.8% in current accounts, which includes products such as Santander Life and PYME Life, while our US$ current account solution is already attracting 41.2% of customers in this market. In total, our digital customers total around 2.2 million and represent 86% of our active customers, with the products with the greatest traction being deposits, credit cards, investment funds and general insurance brokerage.

Getnet’s entry into the Chilean acquiring market continues to surprise with good results, with net commissions of $54 billion in 9M24 (not including operating expenses). Customer reception has been high, with more than 182 thousand affiliated merchants and more than 243 thousand operational POSs, with a strong demand from SME clients and an expansion towards larger clients that require a Host to Host solution, offering an integrated payment system for more sophisticated clients. Thanks to Getnet and other initiatives such as the Cuenta Pyme Life, we are seeing significant growth in current accounts for SMEs and companies, growing 26.7% YoY by July 2024, and with a market share of 39.3% according to the CMF.

For the fifth consecutive year we are Top 1 in NPS among our Chilean peers

As a result of all our efforts, our customers are the most satisfied with us. As of September 2024, our NPS is 59 points, top 1 among our peers. We also rank first in net satisfaction in the evaluation of our account executives and contact center with 66 and 72 points respectively. Regarding digital channels, they also continue to be a strength, with the website standing out with a net satisfaction of 72 and the App with 74 points.

Efficiency ratio of 36.3% in the quarter as income improves and costs remain under control

The Bank’s efficiency ratio reached 40.0% as of September 30, 2024, better than the 48.0% of the same period last year, with a quarterly efficiency ratio of 36.3%, explained by the recovery of revenues in the quarter and solid cost control.

Core support expenses (salaries, administration and amortization) grew 4.4% in 9M24 compared to 9M23 and 0.4% compared to 2Q24, in line with the growth of inflation, as we mentioned in our previous guidance. Total operating expenses (which includes other expenses) increased 13.1% in 9M24 compared to the same period in 2023 driven by higher other operating expenses, related to a provision for the restructuring of our branch network and the transformation to Work/Café and also the progress in Digital Banking.

Cost of credit of 1.28% in 9M24, in line with the evolution of asset quality given the economic scenario.

During the Covid-19 pandemic, asset quality benefited from state aid and pension fund withdrawals, which led to a positive performance in assets during that period, before normalizing in line with the performance of the economy and the drainage of excess liquidity from households. Currently, our clients’ performance is reflecting the state of the economy and the labor market, where delinquency is higher than the levels we saw before the pandemic with the non-performing loans (NPL) ratio increasing to 3.1% and the impaired portfolio to 6.7% at September 2024. Overall the cost of credit remained stable at 1.28% in the quarter.

Solid capital levels with a BIS⁷ratio of 17.2% and a CET1⁸of 10.7%.

Our total BIS ratio reached 17.2% as of September 30, 2024 and the CET1 ratio remains solid at 10.7%, even considering that we increased the dividend provision for the 2024 income from 30% to 60% in June 2024 and then to 70% in September 2024. Risk-weighted assets (RWA) increased 0.8% since December 31, 2023 and 0.3% QoQ, explained by a growth in market risk-weighted assets offset by a decrease in credit risk-weighted assets. Additionally, in January 2024, the CMF announced the Pillar II charges for six banks in the Chilean system, and we highlight that, on this occasion, they did not assign a charge to the Bank.

Upgrading guidance for 2024 and soft guidance for 2025

Given the strong recovery in our results and our current economic estimates for the fourth quarter, we are improving our ROAE guidance for 2024 to 18%-19%. We have upgraded our medium term guidance for ROAEs to 18%-20% and our soft guidance for 2025 indicates a ROAE within this range.

Banco Santander Chile is one of the companies with the highest risk classifications in Latin America with an A2 rating from Moody’s, A- from Standard and Poor’s, A+ from Japan Credit Rating Agency, AA- from HR Ratings and A from KBRA. All our ratings as of the date of this report have a Stable Outlook.

As of September 30, 2024, the Bank has total assets of $65,890,254 million (US$73,419 million), total gross loans (including loans to banks) at amortized cost of $40,362,740 million (US$44,975 million), total deposits of $29,617,085 million (US$33,001 million) and shareholders’ equity of $4,218,883 million (US$4,701 million). The BIS capital ratio was 17.2%, with a core capital ratio of 10.7%. As of September 30, 2024, Santander Chile employed 8,861 people and has 234 branches throughout Chile.

CONTACT INFORMATION
Cristian Vicuña
Chief Strategy Officer and Head of Investor Relations
Banco Santander Chile
Bandera 140, Floor 20
Santiago, Chile
Email: irelations@santander.cl Website: www.santander.cl

^¹ The information contained in this report is presented in accordance with Chilean Bank GAAP as defined by the Financial Markets Commission (FMC).
^² Annualized net income attributable to shareholders of the Bank divided by the average equity attributable to equity holders
^³ The third quarter of 2024
^⁴ The nine months accumulated as of September 30, 2024
^⁵ NIM: Net interest margin. Annualized net interest income and annualized readjustments divided by interest-earning assets
^⁶Recurrence: Net commissions divided by structural operating expenses (excludes other operating expenses).
^⁷ Regulatory capital divided by risk-weighted assets, according to CMF BIS III definitions
^⁸ Core capital divided by risk-weighted assets, according to CMF BIS III definitions.

The MIL Network –

January 25, 2025

MIL-OSI Europe: Czech trains to be upgraded with €300 million EIB loan to national railway operator

Source: European Investment Bank

The European Investment Bank (EIB) is lending CZK 7.61 billion Czech korunas (€300 million) to the Czech Republic’s national railway operator, České dráhy, to buy new train carriages and locomotives as well as upgrade existing ones. České dráhy will use the loan to purchase 180 passenger coaches and 20 electric locomotives. The company will also retrofit 219 existing coaches and locomotives with modern technology known as the European Rail Traffic Management System (ERTMS). The improvements, due to be completed by the end of 2028, will benefit Czech cohesion regions and cross-border connections.

“This financing exemplifies our unwavering commitment to sustainable transport,” said EIB Vice-President Kyriacos Kakouris. “By modernising the rolling stock of České dráhy, we are not only enhancing the safety and efficiency of rail services but also advancing the EU’s climate-action goals.”

The loan builds on years of EIB- České dráhy cooperation to upgrade infrastructure and rolling stock. Last year alone, the EIB committed €880 million to Czech rail projects.

“The funds from the European Investment Bank help us to invest into the modernisation of our rolling stock. We are using the funds obtained in this way primarily for improvement of the quality of long-distance trains, including the acquisition of the most modern ComfortJet trainsets, which will run on the lines interconnecting Prague with Germany, Austria, Slovakia or Hungary, as well as for equipment of other vehicles with the on-board part of the European Train Control System (ETCS). Thanks to these investments, we will offer our passengers more comfortable, more convenient, and safer trains and we will further strengthen the competitive edge of the modern and environment-friendly railway transport,” said Lukáš Svoboda, Member of the Board of Directors and Deputy Director General of ČD for Economics and Purchasing.

The new and retrofitted rolling stock will improve service reliability, shorten journey times, and lower maintenance costs.

The use of ERTMS will enhance safety and interoperability across the European rail network. The fleet to be retrofitted with ERTMS is expected to be operated for regional and long-distance connections under public-service contracts mainly in the Czech Republic and to a limited extent in neighbouring countries.

The environmental benefits include reductions in emissions and energy consumption, contributing to the EU’s climate action goals. The project will also support economic and social cohesion by improving mobility for people primarily in the country’s less-developed regions and by strengthening connections to other EU countries.

Furthermore, the initiative is projected to create around 160 permanent jobs, primarily for train drivers, accompanying staff and maintenance personnel.

The EIB loan complements grants under the Connecting Europe Facility (CEF). The CEF is a key EU funding instrument designed to promote growth, jobs, and competitiveness through targeted infrastructure investments.

Background information

About the EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union. It finances sound investments that contribute to EU policy goals and works closely with other EU institutions to advance shared policy priorities, such as equitable growth and a just transition to climate neutrality. In 2023 alone, the EIB Group provided €1.88 billion for Czech projects. We are significantly investing in the rail sector, with close to €1 billion dedicated to rail projects last year. Since its inception, the EIB has provided substantial financing to the Czech Republic, contributing to the development of its infrastructure and economy.

About České dráhy, a.s

The joint stock company “České dráhy” plays the role of the national carrier in the Czech Republic and on the basis of orders from the state and regions it ensures basic transport services for the state. During recent years it was possible to register a significant rejuvenation of the rolling stock, in both regional and long-distance transport sectors. In its effort of making railway transport more attractive and increasing its competitiveness on the open market the firm has invested dozens of billions of Czech crowns in purchases and modernisation of vehicles.

MIL OSI Europe News –

January 25, 2025

MIL-OSI Europe: A green fix for steel

Source: European Investment Bank

Finding more sustainable production processes can raise steel prices a lot. This is because companies must spend millions of euros on research, new equipment and training. One estimate suggests that it is 25% more expensive to make low-carbon steel. A lot of steel research today focuses on making a product that emits less carbon and does not increase costs substantially.

Most of the so-called green steel is not able to compete with cheaper steel made from traditional blast furnaces, but it is still in demand. Industries such as the automotive sector will pay a premium for a sustainable, high-quality product. And new regulations in the European Union and other regions are making it mandatory that companies use more low-carbon steel or pay tariffs.

Tonteling, the senior engineer at the European Investment Bank, says the one thing we can’t do with steel in the future is stop making it.

“Just think about how you got out of bed this morning,” he says. “There is steel in the bed. And think how many times you use steel to leave the home, get to work, ride a bike, drive or take public transport. Steel is everywhere and it can’t be replaced. There is no other method or material that has the same properties and that is this abundant and relatively cheap.”

MIL OSI Europe News –

January 25, 2025

MIL-OSI China: Announcement on Open Market Operations No.214 [2024]

Source: Peoples Bank of China

Announcement on Open Market Operations No.214 [2024]

(Open Market Operations Office, October 30, 2024)

In order to keep liquidity adequate at a reasonable level in the banking system at month-end, the People’s Bank of China conducted reverse repo operations in the amount of RMB431 billion through quantity bidding at a fixed interest rate on October 30, 2024.

Details of the Reverse Repo Operations

Maturity	Volume	Rate
7 days	RMB431 billion	1.50%

Date of last update Nov. 29 2018

2024年10月30日

MIL OSI China News –

January 25, 2025

MIL-OSI: Safe Harbor Financial to Report Third Quarter 2024 Financial Results on Tuesday, November 12, 2024

Source: GlobeNewswire (MIL-OSI)

GOLDEN, Colo., Oct. 30, 2024 (GLOBE NEWSWIRE) — SHF Holdings, Inc., d/b/a/ Safe Harbor Financial (“Safe Harbor”) (NASDAQ: SHFS), a leader in facilitating financial services and credit facilities to the regulated cannabis industry, today announced that it will report financial results for the third quarter of 2024 ended September 30, 2024 on Tuesday, November 12, 2024, after the close of the market.

Safe Harbor will host a conference call and webcast at 4:30p.m. ET / 1:30p.m. PT on November 12, 2024, to discuss Safe Harbor’s financial results.

For those interested in listening in to the conference call, please dial in and ask to join the Safe Harbor Financial call.

About Safe Harbor
Safe Harbor is among the first service providers to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. Safe Harbor, through its financial institution clients, implements high standards of accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Over the past eight years, Safe Harbor has facilitated more than $23 billion in deposit transactions for businesses with operations spanning over 41 states and US territories with regulated cannabis markets. For more information, visit www.shfinancial.org.

Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; new product and service offerings Safe Harbor may introduce in the future; the impact volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that may be instituted against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Safe Harbor Media
Nick Callaio, Marketing Manager
720.951.0619
Nick@SHFinancial.org

Safe Harbor Investor Relations
ir@SHFinancial.org

KCSA Strategic Communications
Phil Carlson
safeharbor@kcsa.com

The MIL Network –

January 25, 2025

MIL-OSI: Stock Yards Bancorp to Participate in the 2024 Hovde Group Financial Services Conference

Source: GlobeNewswire (MIL-OSI)

LOUISVILLE, Ky., Oct. 30, 2024 (GLOBE NEWSWIRE) — Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today announced that Ja Hillebrand, Chairman and CEO and T. Clay Stinnett, EVP and CFO will participate in the 2024 Hovde Group Financial Services Conference to be held November 6^th through November 8^th, and will participate in a series of meetings with institutional investors.

Management’s discussion materials to be used at this conference will be posted to the investor section of the Company’s website, www.syb.com, on or before November 6, 2024.

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $8.4 billion in assets, was incorporated in 1988 as a bank holding company. It is the parent company of Stock Yards Bank & Trust Company, which was established in 1904. The Company’s common shares trade on The Nasdaq Stock Market under the symbol “SYBT.”

Contact:
T. Clay Stinnett
Executive Vice President,
Treasurer and Chief Financial Officer
(502) 625-0890

The MIL Network –

January 25, 2025

MIL-OSI Economics: RBI to conduct 14-day Variable Rate Reverse Repo (VRRR) auction under LAF on October 31, 2024

Source: Reserve Bank of India

On a review of the current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Reverse Repo (VRRR) auction on October 31, 2024, Thursday, as under:

Sl. No.	Notified Amount (₹ crore)	Tenor (day)	Window Timing	Date of Reversal
1	1,75,000	14	10:30 AM to 11:00 AM	November 14, 2024 (Thursday)

2. The operational guidelines for the auction as given in the Reserve Bank’s Press Release 2019-2020/1947 dated February 13, 2020 will remain the same.

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/1403

MIL OSI Economics –

January 25, 2025

MIL-OSI: Four in Five Recent Home Buyers May Look to Refinance in the Next 12 Months to Help Alleviate Strain on Personal Finances

Source: GlobeNewswire (MIL-OSI)

CHICAGO, Oct. 30, 2024 (GLOBE NEWSWIRE) — A new TransUnion (NYSE: TRU) survey found that many consumers feel their existing auto and new mortgage payments are putting a strain on their household finances, and the prospect of falling interest rates has them ready to consider refinancing those loans.

The surveys of current auto loan customers and those consumers who have taken out a mortgage in the last 24 months were conducted between September 18 and September 27, 2024. They resulted in responses from 1,002 and 1,025 auto and mortgage loan customers, respectively.

“We surveyed this specific group of recent borrowers to better understand the drivers of refinance for both mortgages and auto loans,” said Jason Laky, executive vice president and head of financial services at TransUnion. “Millions of people financed homes and autos during this period of high interest rates, and many will look to refinance as interest rates decline.”

TransUnion’s survey found four in five recent home buyers say their mortgage payments are straining their finances and are looking to refinance their mortgage payments in the next 12 months.

Many Recent Home Buyers Say Their Current Mortgage Payment is a Strain on Their Personal Finances

Opinions/Generation	All Consumers	Gen Z	Millennials	Gen X	Baby Boomers
Strongly Agree or Agree	80.1%	79.7%	88.7%	75.3%	54.9%
Neither Agree nor Disagree	8.0%	10.6%	4.6%	9.8%	12.1%
Disagree or Strongly Disagree	11.9%	9.7%	6.7%	14.9%	33.0%

Percent of Recent Home Buyers Who Anticipate Refinancing Their Mortgage in the Next Twelve Months if Rates Fall

Opinions/Generation	All Consumers	Gen Z	Millennials	Gen X	Baby Boomers
Very Likely or Likely	80.0%	77.0%	89.6%	78.5%	46.2%
Neither Likely nor Unlikely	7.1%	10.2%	4.2%	7.3%	13.2%
Unlikely or Very Unlikely	12.9%	12.8%	6.2%	14.2%	40.6%

Source: TransUnion U.S. consumer survey

When asked the biggest factor that would ultimately drive them to pull the trigger on a refinancing decision, 70% of these recent home buyers said that a more favorable loan term would be a key driver for them. However, a nearly identical percentage said that better interest rates (67%) and a cash-out refinance (61%) would also be significant drivers, reflecting broad economic interest.

“For many of these recent home buyers, their mortgage payment is their largest single payment each month,” said Satyan Merchant, senior vice president and mortgage and auto business leader for TransUnion. “The upside is that it is a payment that can be refinanced if the economic climate allows for it, and as interest rates begin to fall, this group of consumers should begin exploring this option. Conversely, lenders should be actively marketing to these refinance candidates, regardless of what their primary motivation to refinance may be.”

Similar Consumer Sentiments Found When Asked About Auto Loans

The survey also examined consumer sentiment towards their existing auto loans, payments and interest rates along with future plans regarding refinancing. Results indicated that there was a similar eagerness to refinance when interest rates eventually fall, and a similar response among consumers when asked if they feel that their current auto loan payments represent a strain on their household finances.

When asked the extent to which they agree that their current auto loan payment represented a strain on their personal finances, 65% of respondents indicated that they agree or strongly agree with this statement as opposed to 20% who disagree or strongly disagree. Nearly the same percentage of respondents, 63%, indicated that they were likely or very likely to refinance their existing auto loans if it could save them money on their monthly payments. 52% of respondents indicated they would consider refinancing if it would save them between $50 and $149 monthly.

The research also explored the sentiment of consumers who have already refinanced despite the relatively high interest rates. Many of these borrowers derived lower payments through longer terms.

From this standpoint, TransUnion data shows that credit unions continue to lead the way with 67% of the refinance share in 2023. Banks had the second largest share, at 20%. These figures have remained relatively stable in recent years and underscore consumers’ favorable perception of credit unions when they begin exploring refinancing opportunities.

“Credit unions may be able to offer their members rates and service that larger more traditional banks cannot,” said Sean Flynn, senior director of community financial institutions at TransUnion. “Credit unions should lean into this fact and leverage available tools such as trended data and advanced analytics to seek out those consumers who may be able to refinance.”

To learn more about how TruIQ™ by TransUnion helps lenders make better, data-driven decisions faster with advanced analytics consulting services and enabling technologies, click here. To learn how TruVision™ allows lenders to use trended data to more precisely balance risk and opportunity with risk management products that identify and manage best-fit customers across the account lifecycle, click here.

To learn more about the analysis above, click here.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business

Contact	Dave Blumberg
	TransUnion

E-mail	david.blumberg@transunion.com

Telephone	312-972-6646

The MIL Network –

January 25, 2025

MIL-OSI: ES Bancshares, Inc. Announces Third Quarter 2024 Results; Continues Trend of Net Interest Margin Expansion and Revenue Growth

Source: GlobeNewswire (MIL-OSI)

STATEN ISLAND, N.Y., Oct. 30, 2024 (GLOBE NEWSWIRE) — ES Bancshares, Inc. (OTCQX: ESBS) (the “Company”) the holding company for Empire State Bank, (the “Bank”) today reported net income of $582 thousand, or $0.08 per diluted common share, for the quarter ended September 30, 2024, compared to a net income of $158 thousand or $0.02 per diluted common share for the quarter ended June 30, 2024.

Key Quarterly Financial Data				2024 Highlights
Performance Metrics	3Q24	2Q24	3Q23	• The Cost of Funds for the three months ended September 30, 2024, improved to 3.02% from 3.17% in the prior linked quarter. • For 3 months ended September 30, 2024, the Company’s net interest margin increased to 2.30% compared to 2.21% for the 3 months ended June 30, 2024. • The Company repurchased $2million of its sub-debt during the quarter, resulting in a gain on extinguishment. • The Company has replaced $56 million of higher-costing wholesale funding with lower cost organic deposits over the nine-months in 2024. • Total Revenues for the quarter ended September 30, 2024, totaled $8.6 million increasing for an eighth consecutive quarter.
Return on average assets (%)	0.36	0.10	0.09
Return on average equity (%)	4.98	1.37	1.17
Return on average tangible equity (%)	5.04	1.38	1.18
Net interest margin (%)	2.30	2.21	2.67

Income Statement (a)	3Q24	2Q24	3Q23
Net interest income	$ 3,567	$ 3,447	$ 3,977
Non-interest income	$ 609	$ 329	$ 256
Net income	$ 582	$ 158	$ 133
Earnings per diluted common share	$ 0.08	$ 0.02	$ 0.02

Balance Sheet (a)	3Q24	2Q24	3Q23
Average total loans	$ 566,031	$ 565,363	$ 555,919
Average total deposits	$ 512,119	$ 510,050	$ 487,816
Book value per share	$ 6.85	$ 6.74	$ 6.79
Tangible book value per share	$ 6.77	$ 6.65	$ 6.71

(a) In thousands except for per share amounts

Phil Guarnieri, Director, and Chief Executive Officer of ES Bancshares, said, “We are pleased to report solid progress this quarter, reflecting our commitment to enhancing the earnings profile of the organization and maintaining disciplined expense management. Despite a challenging and competitive landscape, the Company’s net interest margin increased by nine basis points for the second straight quarter. The Company’s balance sheet and capital position remain robust, and through the open market, we’ve partially paid down our subordinated debt, which will positively impact the margin going forward.”

Selected Balance Sheet Information:

September 30, 2024 vs. December 31, 2023

As of September 30, 2024, total assets were $633.2 million, a decrease of $5.5 million, or 0.9%, as compared to total assets of $638.7 million on December 31, 2023. The decrease can be attributed to a slightly smaller loan portfolio.

Loans receivable, net of Allowance for Credit Losses on Loans totaled $560.0 million, a decrease of 0.7% from December 31, 2023. As of September 30, 2024, the Allowance for Credit Losses on Loans as a percentage of gross loans was 0.90%.

Nonperforming assets, which includes nonaccrual loans and foreclosed real estate were $5.1 million or 0.81% of total assets, as of September 30, 2024, increasing from $1.4 million or 0.22% of total assets at December 31, 2023. The ratio of nonaccrual loans to loans receivable was 0.91%, as of September 30, 2024, and 0.22% for December 31, 2023. The increase from December 31, 2023, was primarily due to one Commercial Real Estate loan and one 1-4 family investor loan being placed on non-accrual status. Both loans are deemed to be well collateralized and in total amount to $4.0 million.

Total liabilities decreased $6.8 million to $586.1 at September 30, 2024 from $592.9 million at December 31, 2023. The decrease can be attributed to repayments of brokered deposits and Federal Home Loan (FHLB) borrowings partially offset by growth in core deposits. The growth in deposits was driven by an increase in interest-bearing, non-maturity deposit accounts.

As of September 30, 2024, the Bank’s Tier 1 capital leverage ratio, common equity tier 1 capital ratio, Tier 1 capital ratio and total capital ratios were 9.18%, 13.67%, 13.67% and 14.92%, respectively, all in excess of the ratios required to be deemed “well-capitalized.” During the third quarter 2024 the Company did not repurchase shares under its stock repurchase program. Book value per common share was $6.85 at September 30, 2024 compared to $6.83 at December 31, 2023. Tangible common book value per share (which represents common equity less goodwill, divided by the number of shares outstanding) was $6.77 at September 30, 2024 compared to $6.74 at December 31, 2023.

Financial Performance Overview:

Three Months Ended September 30, 2024, vs. June 30, 2024

For the three months ended September 30, 2024, the Company net income totaled $582 thousand compared to a net income of $158 thousand for the three months ended June 30, 2024. The improvement can be attributed to an expanded margin and increased non-interest income quarter over quarter.

Net interest income for the three months ended September 30, 2024, increased $120 thousand, to $3.6 million from $3.4 million at three months ended June 30, 2024. The Company’s net interest margin widened by nine basis points to 2.30% for the three months ended September 30, 2024, as compared to 2.21% for the three months ended June 30, 2024. The increase in margin can be attributed to a reduction in the Company’s average cost for its Interest-bearing liabilities.

There was a reversal for credit losses of $38 thousand for the three months ended September 30, 2024, compared to a $9 thousand provision for credit losses taken for the three months ended June 30, 2024.

Non-interest income increased $280 thousand, to $609 thousand for the three months ended September 30, 2024, compared with non-interest income of $329 thousand for the three months ended June 30, 2024. The majority of the increase can be attributed to a $245 thousand gain on extinguishment of the Company’s subordinated debt.

Non-interest expenses totaled $3.4 million for the three months ended September 30, 2024, compared to $3.5 million for the three months ended June 30, 2024. The largest fluctuations quarter over quarter pertain to a 31% reduction in Professional fees, which decreased $70 thousand to a more normalized level during the quarter ended September 30, 2024.

Nine months ended September 30, 2024 vs. September 30, 2023

For the nine months ended September 30, 2024, net income totaled $637 thousand in comparison to $1.4 million for the nine months ended September 30, 2023. The decrease can mainly be attributed to higher costs paid on deposits which increased $5.0 million.

Net interest income for the nine months ended September 30, 2024, decreased 18% or $2.2 million, to $10.2 million from $12.4 million at September 30, 2023. The decrease can be attributed to increased interest expense for deposits, partially offset by increased interest income earned on the loan portfolio.

Provision for credit losses totaled $10 thousand for the nine months ended September 30, 2024, compared to a $103 thousand provision for the nine months ended September 30, 2023.

Non-interest income totaled $1.2 million for the nine months ended September 30, 2024, compared with noninterest income of $758 thousand for the nine months ended September 30, 2023. The increase can be attributed to the gain recorded on extinguishment of sub-debt which is partially offset by a decrease in gains recorded from loan sales period over period.

Operating expenses totaled $10.4 million for the nine months ended September 30, 2024, compared to $11.3 million for the nine months ended September 30, 2023, or a decrease of 8.1%. The decrease in non-interest expense can be attributed to initiatives taking effect from the cost-cutting program launched in 2024.

About ES Bancshares Inc.
ES Bancshares, Inc. (the “Company”) is incorporated under Maryland law and serves as the holding company for Empire State Bank (the “Bank”). The Company is subject to regulation by the Board of Governors of the Federal Reserve System while the Bank is primarily subject to regulation and supervision by the New York State Department of Financial Services. Currently, the Company does not transact any material business other than through the Bank, its subsidiary.

The Bank was organized under federal law in 2004 as a national bank regulated by the Office of the Comptroller of the Currency. The Bank’s deposits are insured up to legal limits by the FDIC. In March 2009, the Bank converted its charter to a New York State commercial bank charter. The Bank’s principal business is attracting commercial and retail deposits in New York and investing those deposits primarily in loans, consisting of commercial real estate loans, and other commercial loans including SBA and mortgage loans secured by one-to-four-family residences. In addition, the Bank invests in mortgage-backed securities, securities issued by the U.S. Government and agencies thereof, corporate securities and other investments permitted by applicable law and regulations.

We operate from our five Banking Center locations, a Loan Production Office and our Corporate Headquarters located in Staten Island, New York. The Company’s website address is www.esbna.com. The Company’s annual report, quarterly earnings releases and all press releases are available free of charge through its website, as soon as reasonably practicable.

Forward-Looking Statements

This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in this release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “estimate” or “continue” or comparable terminology, are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within ES Bancshares, Inc’s. control. The forward-looking statements included in this release are made only as of the date of this release. We have no intention, and do not assume any obligation, to update these forward-looking statements.

Investor Contact:
Peggy Edwards, Corporate Secretary
(845) 451-7825

ES Bancshares, Inc.
Consolidated Statements of Financial Condition
(in thousands)
		September 30,		December 31,		September 30,
		2024		2023		2023
		\|—-(unaudited)—-\|				\|—-(unaudited)—-\|
Assets
Cash and cash equivalents	$	25,436		32,728		29,439
Securities, net		22,595		15,220		15,143
Loans receivable, net:
Real estate mortgage loans		545,445		551,250		543,870
Commercial and Lines of Credit		14,729		12,823		13,950
Home Equity and Consumer Loans		709		700		704
Deferred costs		4,210		4,233		4,362
Allowance for Loan Credit Losses		(5,100	)	(5,086	)	(5,028	)
Total loans receivable, net		559,993		563,920		557,858
Accrued interest receivable		2,670		2,625		2,533
Investment in restricted stock, at cost		4,342		5,191		5,782
Goodwill		581		581		581
Bank premises and equipment, net		5,050		5,600		5,608
Repossessed assets		–		–		164
Right of use lease assets		6,109		6,415		6,625
Bank Owned Life Insurance		5,450		5,341		5,305
Other Assets		1,014		1,129		1,278
Total Assets	$	633,240		638,750		630,316

Liabilities & Stockholders’ Equity
Non-Interest-Bearing Deposits		97,867		107,849		125,562
Interest-Bearing Deposits		389,340		329,695		302,509
Brokered Deposits		20,773		56,581		42,873
Total Deposits		507,980		494,125		470,944
Bond Issue, net of costs		11,780		13,708		13,701
Borrowed Money		50,267		70,805		83,980
Lease Liability		6,382		6,672		6,877
Other Liabilities		9,710		7,578		9,208
Total Liabilities		586,119		592,888		584,710
Stockholders’ equity		47,121		45,862		45,606
Total liabilities and stockholders’ equity	$	633,240		638,750		630,316

	ES Bancshares, Inc.
	Consolidated Statements of Income
	(in thousands)

	Three Months Ended							Nine Months Ended
	September 30, 2024			June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	\|————–(unaudited)————–\|							\|—-(unaudited)—-\|
Interest income
Loans	$	7,315		$	7,345	$	6,716	$	21,868	$	19,284
Securities		218			121		111		454		336
Other interest-earning assets		428			561		319		1,252		1,140
Total Interest Income		7,961			8,027		7,146		23,574		20,760
Interest expense
Deposits		3,674			3,837		2,459		11,096		6,107
Borrowings		720			743		710		2,261		2,220
Total Interest Expense		4,394			4,580		3,169		13,357		8,327
Net Interest Income		3,567			3,447		3,977		10,217		12,433
(Rev)Prov for Credit Losses		(38	)		9		86		10		103
Net Interest Income after (Rev)Prov for Credit Losses		3,605			3,438		3,891		10,207		12,330
Non-interest income
Service charges and fees		264			200		205		636		508
Gain on loan sales		–			–		12		1		138
Gain on extinguishment of Sub-debt		245			–		–		245		–
Other		100			129		39		271		112
Total non-interest income		609			329		256		1,153		758
Non-interest expenses
Compensation and benefits		1,719			1,728		1,856		5,168		5,664
Occupancy and equipment		618			605		729		1,891		2,010
Data processing service fees		315			317		397		958		1,039
Professional fees		155			225		315		561		747
FDIC & NYS Banking Assessments		100			99		71		296		183
Advertising		84			85		107		244		305
Insurance		55			46		54		151		140
Other		365			401		446		1,103		1,198
Total non-interest expense		3,411			3,506		3,975		10,372		11,286
Income prior to tax expense		803			261		172		988		1,802
Income taxes		221			103		39		351		414
Net Income	$	582		$	158	$	133	$	637	$	1,388


	ES Bancshares, Inc.
	Average Balance Sheet Data
	For the Three Months Ended (dollars in thousands)
	September 30, 2024						June 30, 2024						September 30, 2023
	Avg Bal		Interest		Average		Avg Bal		Interest		Average		Avg Bal		Interest		Average
	Rolling		Rolling				Rolling		Rolling				Rolling		Rolling
Assets	3 Mos.		3 Mos.		Yield/Cost		3 Mos.		3 Mos.		Yield/Cost		3 Mos.		3 Mos.		Yield/Cost
Interest-earning assets:
Loans receivable	$	566,031	$	7,315	5.17	%	$	565,363	$	7,345	5.20	%	$	555,919	$	6,716	4.83	%
Investment securities		22,480		218	3.87	%		15,513		121	3.13	%		16,151		111	2.75	%
Other interest-earning assets		31,656		428	5.29	%		41,652		561	5.33	%		24,532		319	5.12	%
Total interest-earning assets		620,167		7,961	5.13	%		622,528		8,027	5.16	%		596,602		7,146	4.79	%
Non-interest earning assets		17,919						16,398						17,371
Total assets	$	638,086					$	638,926					$	613,973
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing checking	$	33,512	$	55	0.65	%	$	36,692	$	71	0.77	%	$	29,162	$	28	0.38	%
Savings accounts		200,248		1,728	3.42	%		175,686		1,629	3.72	%		121,849		536	1.75	%
Certificates of deposit		173,577		1,891	4.32	%		194,806		2,137	4.40	%		212,094		1,895	3.54	%
Total interest-bearing deposits		407,337		3,674	3.58	%		407,184		3,837	3.78	%		363,105		2,459	2.69	%
Borrowings		52,984		519	3.89	%		55,510		522	3.77	%		51,557		488	3.76	%
Subordinated debenture		12,388		201	6.44	%		13,726		221	6.46	%		13,695		222	6.41	%
Total interest-bearing liabilities		472,709		4,394	3.69	%		476,420		4,580	3.86	%		428,357		3,169	2.93	%
Non-interest-bearing demand deposits		104,782						102,866						124,711
Other liabilities		13,842						13,429						15,348
Total non-interest-bearing liabilities		118,624						116,295						140,059
Stockholders’ equity		46,753						46,211						45,557
Total liabilities and stockholders’ equity	$	638,086					$	638,926					$	613,973
Net interest income			$	3,567					$	3,447					$	3,977
Average interest rate spread					1.45	%					1.30	%					1.86	%
Net interest margin					2.30	%					2.21	%					2.67	%


Five Quarter Performance Ratio Highlights		Three Months Ended
Five Quarter Performance Ratio Highlights		September 30, 2024		June 30, 2024		March 31, 2024			December 31, 2023		September 30, 2023
Performance Ratios (%) – annualized
	Return(loss) on Average Assets		0.36		0.10		(0.07	)		0.05		0.09
	Return(loss) on Average Equity		4.98		1.37		(0.90	)		0.73		1.17
	Return(loss) on Average Tangible Equity		5.04		1.38		(0.91	)		0.74		1.18
	Efficiency Ratio		81.70		92.86		101.08			99.31		93.89
Yields / Costs (%)
	Average Yield – Interest Earning Assets		5.13		5.16		5.03			4.92		4.79
	Average Cost – Interest-bearing Liabilities		3.69		3.86		3.82			3.55		2.93
	Net Interest Margin		2.30		2.21		2.12			2.28		2.67
Capital Ratios (%)
	Equity / Assets		7.44		7.12		7.34			7.18		7.24
	Tangible Equity / Assets		7.36		7.03		7.26			7.09		7.15
	Tier I leverage ratio (a)		9.18		9.30		9.52			9.45		9.54
	Common equity Tier I capital ratio (a)		13.67		13.81		13.63			13.60		13.47
	Tier 1 Risk-based capital ratio (a)		13.67		13.81		13.63			13.60		13.47
	Total Risk-based capital ratio (a)		14.92		15.06		14.88			14.85		14.63
Stock Valuation
	Book Value	$	6.85	$	6.74	$	6.75		$	6.83	$	6.79
	Tangible Book Value	$	6.77	$	6.65	$	6.67		$	6.74	$	6.71
	Shares Outstanding (b)		6,878		6,884		6,834			6,714		6,714
Asset Quality (%)
	ACL / Total Loans		0.90		0.90		0.89			0.89		0.89
	Non Performing Loans / Total Loans		0.91		0.22		0.24			0.22		0.25
	Non Performing Assets / Total Assets		0.81		0.19		0.21			0.22		0.25

	(a) Ratios at Bank level (b) Shares information presented in thousands

The MIL Network –

January 25, 2025

MIL-OSI Economics: grmcapitalspro.com: BaFin investigates the company GRMcapitalsPRO

Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

The Federal Financial Supervisory Authority (BaFin) warns consumers about the company GRMcapitalsPRO and the services it is offering. BaFin has information that the company is offering banking business and/or financial services in Germany on its website grmcapitalspro.com without the required authorisation. The company is not supervised by BaFin.

Financial services may only be offered in Germany if the company providing these services has the necessary authorisation from BaFin to do this. However, some companies offer these services without the necessary authorisation. Information on whether a particular company has been granted authorisation by BaFin can be found in BaFin’s database of companies.

Theinformation provided by BaFin is based on section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG).

Please be aware:

BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

MIL OSI Economics –

January 25, 2025

MIL-OSI China: ADB approves $500M loan for Pakistan to support climate resilience

Source: China State Council Information Office 3

The Asian Development Bank (ADB) said Tuesday it has approved 500 million U.S. dollars in policy-based loan to support climate and disaster resilience efforts in Pakistan, said a statement.

The bank’s Pakistan office said that the Climate and Disaster Resilience Enhancement Program will strengthen Pakistan’s institutional capacity for planning, preparedness, and response.

According to the bank, the program will increase inclusive investment in disaster risk reduction and climate resilience and support the scale-up of disaster risk financing using a risk-layered approach.

The ADB added that Pakistan ranks among the most vulnerable countries to climate change and disasters, with average losses from disaster events exceeding 2 billion U.S. dollars annually.

“This program builds on the ADB’s long-standing work in Pakistan to understand and reduce climate and disaster risks and support effective disaster response,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

The bank added that the program aims to strengthen disaster resilience in Pakistan by advancing disaster risk mapping and modeling to guide development and investment decisions.

The program would further support a solidarity fund to promote risk transfer solutions, including agricultural insurance, and will implement shock-responsive social protections to provide cash assistance to those affected by future disasters, added the bank.

MIL OSI China News –

January 25, 2025

MIL-OSI: Red River Bancshares, Inc. Reports Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

ALEXANDRIA, La., Oct. 30, 2024 (GLOBE NEWSWIRE) — Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its unaudited financial results for the third quarter of 2024.

Net income for the third quarter of 2024 was $8.8 million, or $1.27 per diluted common share (“EPS”), an increase of $767,000, or 9.6%, compared to $8.0 million, or $1.16 EPS, for the second quarter of 2024, and an increase of $733,000, or 9.1%, compared to $8.0 million, or $1.12 EPS, for the third quarter of 2023. For the third quarter of 2024, the quarterly return on assets was 1.13%, and the quarterly return on equity was 11.11%.

Net income for the nine months ended September 30, 2024, was $24.9 million, or $3.59 EPS, a decrease of $1.7 million, or 6.2%, compared to $26.6 million, or $3.70 EPS, for the nine months ended September 30, 2023. For the nine months ended September 30, 2024, the return on assets was 1.08%, and the return on equity was 10.86%.

Third Quarter 2024 Performance and Operational Highlights

In the third quarter of 2024, the Company reported higher earnings, an improved net interest margin, and fairly consistent loans and deposits. We deployed excess funds into the securities portfolio and completed a significant stock repurchase. In mid-September, the target range of the federal funds rate was reduced by 50 basis points (“bps”).

Net income for the third quarter of 2024 was $8.8 million compared to $8.0 million for the prior quarter. Net income for the third quarter benefited from higher net interest income and an improved net interest margin fully tax equivalent (“FTE”), along with higher noninterest income.
Net interest income and net interest margin FTE increased for the third quarter of 2024 compared to the prior quarter. Net interest income for the third quarter of 2024 was $22.5 million compared to $21.8 million for the prior quarter. Net interest margin FTE for the third quarter of 2024 was 2.98% compared to 2.92% for the prior quarter. These increases were due to improved yields on securities and loans outpacing higher deposit rates.
Noninterest income totaled $5.4 million for the third quarter of 2024, an increase of $321,000, or 6.3%, compared to $5.1 million for the previous quarter. Noninterest income benefited from the receipt of a $151,000 nonrecurring loan fee.
As of September 30, 2024, assets were $3.10 billion, which was $53.2 million, or 1.7%, higher than June 30, 2024. The increase was mainly due to a $30.5 million increase in deposits.
Deposits totaled $2.75 billion as of September 30, 2024, an increase of $30.5 million, or 1.1%, compared to $2.72 billion as of June 30, 2024. In the third quarter of 2024, customer deposit balances remained consistent, with normal activity.
As of September 30, 2024, loans held for investment (“HFI”) were $2.06 billion, slightly higher than $2.05 billion as of June 30, 2024. In the third quarter of 2024, we closed on a high level of loan commitments, which should fund over time.
As of September 30, 2024, total securities were $697.7 million, which was $31.1 million, or 4.7%, higher than June 30, 2024. In the third quarter of 2024, we redeployed cash flows from lower yielding securities into higher yielding securities, as well as deployed other liquid assets into the securities portfolio.
As of September 30, 2024, liquid assets, which are cash and cash equivalents, were $232.6 million, and the liquid assets to assets ratio was 7.50%. We do not have any borrowings, brokered deposits, or internet-sourced deposits.
In the third quarter of 2024, the provision for credit losses totaled $300,000. This included $200,000 for loans and $100,000 for unfunded loan commitments.
As of September 30, 2024, nonperforming assets (“NPA(s)”) were $3.1 million, or 0.10% of assets, and the allowance for credit losses (“ACL”) was $21.8 million, or 1.06% of loans HFI.
We paid a quarterly cash dividend of $0.09 per common share in the third quarter of 2024.
The 2024 stock repurchase program authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2024 through December 31, 2024. In the third quarter of 2024, we entered into a privately negotiated stock repurchase agreement for the repurchase of 60,000 shares at an aggregate cost of $3.0 million. In connection with this repurchase, we reduced the availability under the 2024 repurchase program by $3.0 million. We also repurchased 233 shares at an aggregate cost of $11,000 from the open market. As of September 30, 2024, the 2024 stock repurchase program had $1.2 million remaining.
As of September 30, 2024, capital levels were strong with a stockholders’ equity to assets ratio of 10.46%, a leverage ratio of 11.90%, and a total risk-based capital ratio of 18.07%.
The book value per share of common stock was $47.51 as of September 30, 2024, compared to $44.58 as of June 30, 2024. This improvement was primarily due to the decrease in the accumulated other comprehensive loss related to securities and net income added to stockholders’ equity, partially offset by stock repurchases.

Blake Chatelain, President and Chief Executive Officer, stated, “We are pleased with the financial results for the third quarter of 2024. We managed continued improvement to the net interest margin FTE, higher earnings, solid asset quality, steady loan activity, and continued strong liquidity and capital.

“Throughout the majority of the third quarter, until the Federal Reserve reduced the federal funds rate, we continued to reprice assets at a quicker pace than liabilities, which benefited net interest margin FTE and net interest income. Loan demand continued to be steady in the third quarter, despite some companies possibly placing investment decisions on hold due to the pending presidential election. We did, however, close on a significant amount of construction loan commitments, which should fund over the next year.

“On September 18, 2024, the Federal Reserve reduced the federal funds rate by 50 bps. This marks the conclusion of one of the most aggressive interest rate tightening cycles in many years. The rapid increase in interest rates has been challenging for banks and their customers. A lower interest rate environment should spur loan demand and mortgage loan activity, as well as help moderate accumulated other comprehensive loss in stockholders’ equity related to securities. Overall, the Louisiana economy seems to be faring well, and our customers’ balance sheets and earnings appear solid.

“Our company is well-positioned for the future, with robust capital and liquidity levels combined with a great team of community bankers. As we gain more clarity regarding future interest rates and the presidential election concludes, we remain committed to providing steady financial results for the company.”

Net Interest Income and Net Interest Margin FTE

Net interest income and net interest margin FTE increased in the third quarter of 2024 compared to the prior quarter. These increases were due to improved yields on securities and loans outpacing higher deposit rates. After keeping the federal funds rate consistent since the third quarter of 2023, the Federal Open Market Committee (“FOMC”) decreased the federal funds rate by 50 bps in September of 2024.

Net interest income for the third quarter of 2024 was $22.5 million, which was $670,000, or 3.1%, higher than the second quarter of 2024, due to a $1.2 million increase in interest and dividend income, partially offset by a $550,000 increase in interest expense. The increase in interest and dividend income was due to higher interest income on loans and securities. Loan income increased $1.0 million primarily due to higher rates on new and renewed loans compared to the existing portfolio. The average rate on new and renewed loans was 7.89% for the third quarter of 2024 and 7.98% for the prior quarter. Securities income increased $266,000 due to reinvesting lower yielding securities cash flows into higher yielding securities. The increase in interest expense was primarily due to higher rates on interest-bearing transaction deposits and time deposits.

The net interest margin FTE increased six bps to 2.98% for the third quarter of 2024, compared to 2.92% for the prior quarter. This increase was due to improved yields on securities and loans, partially offset by higher deposit costs. The yield on securities increased 15 bps due to reinvesting lower yielding securities cash flows into higher yielding securities. The yield on loans increased 11 bps due to higher rates on new and renewed loans compared to the existing portfolio. The cost of deposits increased six bps to 1.81% for the third quarter of 2024, compared to 1.75% for the previous quarter, primarily due to a nine bp increase in the rate on interest-bearing deposits during the third quarter, partially offset by our adjustment to certain transaction deposit rates late in the third quarter.

Late in the third quarter of 2024, the target range of the federal funds rate was reduced 50 bps to 4.75%-5.00%. At that time, we adjusted rates on transaction and time deposits, and we expect to continue lowering these rates in conjunction with future federal funds rate decreases. The market’s expectation is that the FOMC will continue lowering the target federal funds rate in the fourth quarter of 2024. During the twelve months ending September 30, 2025, we anticipate receiving approximately $134.0 million in securities cash flows with an average yield of 2.86%, and we project approximately $194.2 million of fixed rate loans will mature with an average yield of 5.95%. We expect to redeploy these balances into higher yielding assets. Additionally, during the twelve months ending September 30, 2025, we expect $558.5 million of time deposits to mature with an average rate of 4.47%, which we anticipate repricing into lower cost deposits. As of September 30, 2024, floating rate loans were 14.9% of loans HFI, and floating rate transaction deposits were 7.2% of interest-bearing transaction deposits. Depending on balance sheet activity and the movement in interest rates, we expect the net interest income and net interest margin FTE to improve slightly in the fourth quarter of 2024.

Provision for Credit Losses

The provision for credit losses for the third quarter of 2024 totaled $300,000, which included $200,000 for loans and $100,000 for unfunded loan commitments. The provision for credit losses in the second quarter was $300,000 for loans. The provision in the second and third quarters was due to potential economic challenges resulting from the recent inflationary environment, changing monetary policy, and loan growth. In the third quarter of 2024, we had an increase in unfunded loan commitments. We will continue to evaluate future provision needs in relation to current economic situations, loan growth, trends in asset quality, forecasted information, and other conditions influencing loss expectations.

Noninterest Income

Noninterest income totaled $5.4 million for the third quarter of 2024, an increase of $321,000, or 6.3%, compared to $5.1 million for the previous quarter. The increase was mainly due to a gain on equity securities and increases in service charges on deposit accounts, loan and deposit income, and brokerage income, partially offset by a decrease in Small Business Investment Company (“SBIC”) income.

Equity securities are an investment in a Community Reinvestment Act (“CRA”) mutual fund consisting primarily of bonds. The gain or loss on equity securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to the fluctuations in market rates between quarters, equity securities had a gain of $107,000 in the third quarter of 2024, compared to a loss of $13,000 for the previous quarter.

Service charges on deposit accounts totaled $1.5 million for the third quarter of 2024, an increase of $119,000, or 8.7%, compared to $1.4 million for the previous quarter. This increase was mainly due to a larger number of non-sufficient fund transactions and related fee income in the third quarter of 2024.

Loan and deposit income totaled $588,000 for the third quarter of 2024, an increase of $96,000, or 19.5%, compared to $492,000 for the previous quarter. The third quarter of 2024 benefited from the receipt of a $151,000 nonrecurring loan fee.

Brokerage income was $987,000 for the third quarter of 2024, an increase of $94,000, or 10.5%, compared to $893,000 for the previous quarter. The higher income in the third quarter of 2024 was mainly due to increased investing activity by clients. Assets under management were $1.13 billion as of September 30, 2024.

SBIC income for the third quarter of 2024 was $301,000, a decrease of $153,000, or 33.7%, compared to $454,000 for the previous quarter. This decrease was primarily due to lower normal income received from these partnerships in the third quarter. We expect SBIC income to be slightly higher in the fourth quarter of 2024 when compared to the third quarter.

Operating Expenses

Operating expenses totaled $16.8 million for the third quarter of 2024, an increase of $63,000, or 0.4%, compared to $16.7 million for the previous quarter. This increase was mainly due to higher technology expenses and other tax expenses.

Technology expenses totaled $865,000 for the third quarter of 2024, an increase of $141,000, or 19.5%, compared to $724,000 for the previous quarter. This increase was primarily due to continued upgrades to our core banking systems and other software technology enhancements.

Other taxes totaled $622,000 for the third quarter of 2024, an increase of $122,000, or 24.4%, compared to $500,000 for the previous quarter. The second quarter benefited from the reversal of $145,000 of stock repurchase tax expense due to finalized guidelines.

Asset Overview

As of September 30, 2024, assets were $3.10 billion, compared to assets of $3.05 billion as of June 30, 2024, an increase of $53.2 million, or 1.7%. In the third quarter, assets were mainly impacted by a $30.5 million, or 1.1%, increase in deposits. In the third quarter of 2024, liquid assets increased $19.6 million, or 9.2%, to $232.6 million and averaged $224.0 million for the third quarter. As of September 30, 2024, we had sufficient liquid assets available and $1.69 billion accessible from other liquidity sources. The liquid assets to assets ratio was 7.50% as of September 30, 2024. Total securities increased $31.1 million, or 4.7%, to $697.7 million in the third quarter and were 22.5% of assets as of September 30, 2024. During the third quarter, loans HFI increased $8.2 million, or 0.4%, to $2.06 billion. The loans HFI to deposits ratio was 74.84% as of September 30, 2024, compared to 75.38% as of June 30, 2024.

Securities

Total securities as of September 30, 2024, were $697.7 million, an increase of $31.1 million, or 4.7%, from June 30, 2024. Securities increased primarily due to $52.9 million in purchases combined with a $14.9 million reduction in net unrealized loss on securities AFS. This was partially offset by maturities and principal repayments.

The estimated fair value of securities available for sale (“AFS”) totaled $560.6 million, net of $49.5 million of unrealized loss, as of September 30, 2024, compared to $526.9 million, net of $64.4 million of unrealized loss, as of June 30, 2024. As of September 30, 2024, the amortized cost of securities held-to-maturity (“HTM”) totaled $134.1 million compared to $136.8 million as of June 30, 2024. As of September 30, 2024, securities HTM had an unrealized loss of $17.3 million compared to $22.8 million as of June 30, 2024.

As of September 30, 2024, equity securities, which is an investment in a CRA mutual fund consisting primarily of bonds, totaled $3.0 million compared to $2.9 million as of June 30, 2024.

Loans

Loans HFI as of September 30, 2024, were $2.06 billion, slightly higher than $2.05 billion as of June 30, 2024. In the third quarter of 2024, we closed on a high level of loan commitments, which, depending on customer activity, should fund over time. Unfunded loan commitments that originated in the third quarter of 2024 totaled $76.4 million.

Loans HFI by Category
	September 30, 2024			June 30, 2024			Change from June 30, 2024 to September 30, 2024
(dollars in thousands)	Amount		Percent	Amount		Percent	$ Change		% Change
Real estate:
Commercial real estate	$	875,590	42.6%	$	865,645	42.3%	$	9,945	1.1%
One-to-four family residential		616,467	30.0%		611,904	29.9%		4,563	0.7%
Construction and development		141,525	6.9%		129,197	6.3%		12,328	9.5%
Commercial and industrial		327,069	15.9%		344,071	16.8%		(17,002)	(4.9%)
Tax-exempt		66,436	3.2%		67,941	3.3%		(1,505)	(2.2%)
Consumer		28,961	1.4%		29,132	1.4%		(171)	(0.6%)
Total loans HFI	$	2,056,048	100.0%	$	2,047,890	100.0%	$	8,158	0.4%

Commercial real estate (“CRE”) loans are collateralized by owner occupied and non-owner occupied properties mainly in Louisiana. Non-owner occupied office loans were $57.2 million, or 2.8% of loans HFI, as of September 30, 2024, and are primarily centered in low-rise suburban areas. The average CRE loan size was $947,000 as of September 30, 2024.

Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of September 30, 2024, total health care loans were 8.0% of loans HFI. Within the health care sector, loans to nursing and residential care facilities were 4.4% of loans HFI, and loans to physician and dental practices were 3.4% of loans HFI. The average health care loan size was $399,000 as of September 30, 2024.

Asset Quality and Allowance for Credit Losses

NPAs totaled $3.1 million as of September 30, 2024, a decrease of $103,000, or 3.2%, from June 30, 2024, primarily due to changes to nonaccrual loans. The ratio of NPAs to assets was 0.10% as of September 30, 2024, and 0.11% as of June 30, 2024.

As of September 30, 2024, the ACL was $21.8 million. The ratio of ACL to loans HFI was 1.06% as of September 30, 2024 and June 30, 2024. The net charge-offs to average loans ratio was 0.00% for the third quarter of 2024 and 0.01% for the second quarter of 2024.

Deposits

As of September 30, 2024, deposits were $2.75 billion, an increase of $30.5 million, or 1.1%, compared to June 30, 2024. Average deposits for the third quarter of 2024 were $2.73 billion, a decrease of $5.6 million, or 0.2%, from the prior quarter. The following tables provide details on our deposit portfolio:

Deposits by Account Type
	September 30, 2024			June 30, 2024			Change from June 30, 2024 to September 30, 2024
(dollars in thousands)	Balance		% of Total	Balance		% of Total	$ Change		% Change
Noninterest-bearing demand deposits	$	882,394	32.1%	$	892,942	32.9%	$	(10,548)	(1.2%)
Interest-bearing deposits:
Interest-bearing demand deposits		163,787	6.0%		135,543	5.0%		28,244	20.8%
NOW accounts		379,566	13.8%		377,385	13.9%		2,181	0.6%
Money market accounts		551,229	20.0%		547,715	20.1%		3,514	0.6%
Savings accounts		166,723	6.1%		170,050	6.3%		(3,327)	(2.0%)
Time deposits less than or equal to $250,000		411,361	15.0%		399,981	14.7%		11,380	2.8%
Time deposits greater than $250,000		192,065	7.0%		193,030	7.1%		(965)	(0.5%)
Total interest-bearing deposits		1,864,731	67.9%		1,823,704	67.1%		41,027	2.2%
Total deposits	$	2,747,125	100.0%	$	2,716,646	100.0%	$	30,479	1.1%

Deposits by Customer Type
	September 30, 2024			June 30, 2024			Change from June 30, 2024 to September 30, 2024
(dollars in thousands)	Balance		% of Total	Balance		% of Total	$ Change		% Change
Consumer	$	1,348,281	49.1%	$	1,351,709	49.8%	$	(3,428)	(0.3%)
Commercial		1,191,625	43.4%		1,149,023	42.3%		42,602	3.7%
Public		207,219	7.5%		215,914	7.9%		(8,695)	(4.0%)
Total deposits	$	2,747,125	100.0%	$	2,716,646	100.0%	$	30,479	1.1%

In the third quarter of 2024, customer deposit balances remained consistent, with normal activity.

The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout Louisiana. As of September 30, 2024, the average deposit account size was approximately $27,000.

As of September 30, 2024, our estimated uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $832.2 million, or 30.3% of total deposits. This amount was estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of September 30, 2024, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $674.8 million, or 24.6% of total deposits. Our cash and cash equivalents of $232.6 million, combined with our available borrowing capacity of $1.69 billion, equaled 231.3% of our estimated uninsured deposits and 285.2% of our estimated uninsured deposits, excluding collateralized public entity deposits.

Stockholders’ Equity

Total stockholders’ equity as of September 30, 2024, was $324.3 million compared to $307.0 million as of June 30, 2024. The $17.3 million, or 5.6%, increase in stockholders’ equity during the third quarter of 2024 was attributable to a $12.1 million, net of tax, market adjustment to accumulated other comprehensive loss related to securities, $8.8 million of net income, and $92,000 of stock compensation, partially offset by the repurchase of 60,233 shares of common stock for $3.0 million and $615,000 in cash dividends. We paid a quarterly cash dividend of $0.09 per share on September 19, 2024.

Non-GAAP Disclosure

Our accounting and reporting policies conform to United States generally accepted accounting principles (“GAAP”) and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission’s (“SEC”) rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.

Management and the board of directors review tangible book value per share, tangible common equity to tangible assets, and realized book value per share as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which we calculate the non-GAAP financial measures that are discussed may differ from that of other companies’ reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.

A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.

About Red River Bancshares, Inc.

Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.

Forward-Looking Statements

Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.

Contact:
Isabel V. Carriere, CPA, CGMA
Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary
318-561-4023
icarriere@redriverbank.net

FINANCIAL HIGHLIGHTS (UNAUDITED)

	As of and for the Three Months Ended						As of and for the Nine Months Ended
(dollars in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Net Income	$	8,754	$	7,987	$	8,021	$	24,929	$	26,587

Per Common Share Data:
Earnings per share, basic	$	1.28	$	1.16	$	1.12	$	3.60	$	3.70
Earnings per share, diluted	$	1.27	$	1.16	$	1.12	$	3.59	$	3.70
Book value per share	$	47.51	$	44.58	$	39.43	$	47.51	$	39.43
Tangible book value per share ⁽¹⁾	$	47.28	$	44.35	$	39.21	$	47.28	$	39.21
Realized book value per share ⁽¹⁾	$	54.78	$	53.54	$	50.27	$	54.78	$	50.27
Cash dividends per share	$	0.09	$	0.09	$	0.08	$	0.27	$	0.24
Shares outstanding		6,826,120		6,886,928		7,150,685		6,826,120		7,150,685
Weighted average shares outstanding, basic		6,851,223		6,896,030		7,168,413		6,932,137		7,176,219
Weighted average shares outstanding, diluted		6,867,474		6,914,140		7,180,084		6,949,196		7,188,371

Summary Performance Ratios:
Return on average assets		1.13%		1.05%		1.05%		1.08%		1.18%
Return on average equity		11.11%		10.69%		11.15%		10.86%		12.71%
Net interest margin		2.93%		2.87%		2.74%		2.87%		2.91%
Net interest margin FTE		2.98%		2.92%		2.78%		2.92%		2.94%
Efficiency ratio		60.09%		62.07%		61.70%		60.84%		59.02%
Loans HFI to deposits ratio		74.84%		75.38%		70.60%		74.84%		70.60%
Noninterest-bearing deposits to deposits ratio		32.12%		32.87%		35.22%		32.12%		35.22%
Noninterest income to average assets		0.70%		0.67%		0.73%		0.67%		0.71%
Operating expense to average assets		2.17%		2.19%		2.13%		2.14%		2.12%

Summary Credit Quality Ratios:
NPAs to assets		0.10%		0.11%		0.07%		0.10%		0.07%
Nonperforming loans to loans HFI		0.15%		0.16%		0.10%		0.15%		0.10%
ACL to loans HFI		1.06%		1.06%		1.09%		1.06%		1.09%
Net charge-offs to average loans		0.00%		0.01%		0.00%		0.02%		0.01%

Capital Ratios:
Stockholders’ equity to assets		10.46%		10.07%		9.20%		10.46%		9.20%
Tangible common equity to tangible assets⁽¹⁾		10.41%		10.02%		9.15%		10.41%		9.15%
Total risk-based capital to risk-weighted assets		18.07%		18.01%		18.35%		18.07%		18.35%
Tier 1 risk-based capital to risk-weighted assets		17.05%		16.99%		17.31%		17.05%		17.31%
Common equity Tier 1 capital to risk-weighted assets		17.05%		16.99%		17.31%		17.05%		17.31%
Tier 1 risk-based capital to average assets		11.90%		11.74%		11.56%		11.90%		11.56%

^{(1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.}

RED RIVER BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)	September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023		September 30, 2023
ASSETS
Cash and due from banks	$	39,664	$	35,035	$	19,401	$	53,062	$	42,413
Interest-bearing deposits in other banks		192,983		178,038		210,404		252,364		279,786
Securities available-for-sale, at fair value		560,555		526,890		545,967		570,092		529,046
Securities held-to-maturity, at amortized cost		134,145		136,824		139,328		141,236		143,420
Equity securities, at fair value		3,028		2,921		2,934		2,965		2,833
Nonmarketable equity securities		2,305		2,283		2,261		2,239		2,190
Loans held for sale		1,805		3,878		1,653		1,306		2,348
Loans held for investment		2,056,048		2,047,890		2,038,072		1,992,858		1,948,606
Allowance for credit losses		(21,757)		(21,627)		(21,564)		(21,336)		(21,183)
Premises and equipment, net		57,661		57,910		57,539		57,088		56,466
Accrued interest receivable		9,465		9,570		9,995		9,945		8,778
Bank-owned life insurance		30,164		29,947		29,731		29,529		29,332
Intangible assets		1,546		1,546		1,546		1,546		1,546
Right-of-use assets		2,853		2,973		3,091		3,629		3,757
Other assets		31,285		34,450		32,940		32,287		36,815
Total Assets	$	3,101,750	$	3,048,528	$	3,073,298	$	3,128,810	$	3,066,153

LIABILITIES
Noninterest-bearing deposits	$	882,394	$	892,942	$	895,439	$	916,456	$	972,155
Interest-bearing deposits		1,864,731		1,823,704		1,850,452		1,885,432		1,787,738
Total Deposits		2,747,125		2,716,646		2,745,891		2,801,888		2,759,893
Accrued interest payable		11,751		8,747		8,959		8,000		6,800
Lease liabilities		2,982		3,100		3,215		3,767		3,892
Accrued expenses and other liabilities		15,574		13,045		15,919		11,304		13,617
Total Liabilities		2,777,432		2,741,538		2,773,984		2,824,959		2,784,202
COMMITMENTS AND CONTINGENCIES		—		—		—		—		—
STOCKHOLDERS’ EQUITY
Preferred stock, no par value		—		—		—		—		—
Common stock, no par value		41,402		44,413		45,177		55,136		58,031
Additional paid-in capital		2,682		2,590		2,485		2,407		2,327
Retained earnings		329,858		321,719		314,352		306,802		299,079
Accumulated other comprehensive income (loss)		(49,624)		(61,732)		(62,700)		(60,494)		(77,486)
Total Stockholders’ Equity		324,318		306,990		299,314		303,851		281,951
Total Liabilities and Stockholders’ Equity	$	3,101,750	$	3,048,528	$	3,073,298	$	3,128,810	$	3,066,153

RED RIVER BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	For the Three Months Ended						For the Nine Months Ended
(in thousands)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	27,909	$	26,882	$	23,925	$	80,684	$	68,541
Interest on securities		4,334		4,068		3,404		12,465		10,635
Interest on federal funds sold		—		—		—		—		886
Interest on deposits in other banks		2,630		2,709		2,950		8,378		6,359
Dividends on stock		28		22		45		73		106
Total Interest and Dividend Income		34,901		33,681		30,324		101,600		86,527
INTEREST EXPENSE
Interest on deposits		12,444		11,894		9,562		35,993		21,319
Interest on other borrowed funds		—		—		37		—		64
Total Interest Expense		12,444		11,894		9,599		35,993		21,383
Net Interest Income		22,457		21,787		20,725		65,607		65,144
Provision for credit losses		300		300		185		900		485
Net Interest Income After Provision for Credit Losses		22,157		21,487		20,540		64,707		64,659
NONINTEREST INCOME
Service charges on deposit accounts		1,486		1,367		1,489		4,223		4,317
Debit card income, net		905		949		830		2,875		2,687
Mortgage loan income		732		650		604		1,838		1,524
Brokerage income		987		893		1,029		2,867		2,759
Loan and deposit income		588		492		571		1,572		1,566
Bank-owned life insurance income		217		216		191		635		557
Gain (Loss) on equity securities		107		(13)		(113)		63		(145)
SBIC income		301		454		920		1,107		2,479
Other income (loss)		96		90		60		266		184
Total Noninterest Income		5,419		5,098		5,581		15,446		15,928
OPERATING EXPENSES
Personnel expenses		9,700		9,603		9,461		28,854		28,008
Occupancy and equipment expenses		1,661		1,698		1,663		4,975		4,933
Technology expenses		865		724		675		2,298		2,066
Advertising		317		408		331		1,061		955
Other business development expenses		521		593		522		1,589		1,451
Data processing expense		652		651		651		1,650		1,689
Other taxes		622		500		664		1,859		2,042
Loan and deposit expenses		294		309		238		561		728
Legal and professional expenses		653		729		616		2,000		1,714
Regulatory assessment expenses		421		401		419		1,226		1,223
Other operating expenses		1,046		1,073		990		3,241		3,041
Total Operating Expenses		16,752		16,689		16,230		49,314		47,850
Income Before Income Tax Expense		10,824		9,896		9,891		30,839		32,737
Income tax expense		2,070		1,909		1,870		5,910		6,150
Net Income	$	8,754	$	7,987	$	8,021	$	24,929	$	26,587

RED RIVER BANCSHARES, INC.
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)

	For the Three Months Ended
	September 30, 2024					June 30, 2024
(dollars in thousands)	Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate	Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Loans^(1,2)	$	2,054,451	$	27,909	5.32%	$	2,042,602	$	26,882	5.21%
Securities – taxable		545,171		3,344	2.45%		546,466		3,069	2.25%
Securities – tax-exempt		191,285		990	2.07%		193,954		999	2.06%
Interest-bearing deposits in other banks		194,229		2,630	5.36%		199,668		2,709	5.43%
Nonmarketable equity securities		2,284		28	4.85%		2,262		22	3.96%
Total interest-earning assets		2,987,420	$	34,901	4.59%		2,984,952	$	33,681	4.48%
Allowance for credit losses		(21,702)					(21,653)
Noninterest-earning assets		104,599					96,631
Total assets	$	3,070,317				$	3,059,930
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	1,230,487	$	6,042	1.95%	$	1,230,474	$	5,701	1.86%
Time deposits		597,286		6,402	4.26%		595,120		6,193	4.19%
Total interest-bearing deposits		1,827,773		12,444	2.71%		1,825,594		11,894	2.62%
Other borrowings		—		—	—%		1		—	5.78%
Total interest-bearing liabilities		1,827,773	$	12,444	2.71%		1,825,595	$	11,894	2.62%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		901,192					908,930
Accrued interest and other liabilities		28,006					24,868
Total noninterest-bearing liabilities		929,198					933,798
Stockholders’ equity		313,346					300,537
Total liabilities and stockholders’ equity	$	3,070,317				$	3,059,930
Net interest income			$	22,457				$	21,787
Net interest spread					1.88%					1.86%
Net interest margin					2.93%					2.87%
Net interest margin FTE⁽³⁾					2.98%					2.92%
Cost of deposits					1.81%					1.75%
Cost of funds					1.66%					1.60%

^{(1)  Includes average outstanding balances of loans held for sale of $3.0 million and $3.2 million for the three months ended September 30, 2024 and June 30, 2024, respectively.}
^{(2)  Nonaccrual loans are included as loans carrying a zero yield.}
^{(3)  Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.}

RED RIVER BANCSHARES, INC.
NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)

	For the Nine Months Ended
	September 30, 2024					September 30, 2023
(dollars in thousands)	Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate	Average Balance Outstanding		Interest Income/ Expense		Average Yield/ Rate
Assets
Interest-earning assets:
Loans^(1,2)	$	2,037,435	$	80,684	5.21%	$	1,933,226	$	68,541	4.68%
Securities – taxable		553,714		9,461	2.28%		618,345		7,535	1.63%
Securities – tax-exempt		194,341		3,004	2.06%		203,748		3,100	2.03%
Federal funds sold		—		—	—%		24,861		886	4.70%
Interest-bearing deposits in other banks		206,023		8,378	5.40%		167,210		6,359	5.05%
Nonmarketable equity securities		2,262		73	4.27%		3,744		106	3.76%
Total interest-earning assets		2,993,775	$	101,600	4.47%		2,951,134	$	86,527	3.88%
Allowance for credit losses		(21,586)					(20,920)
Noninterest-earning assets		100,586					88,527
Total assets	$	3,072,775				$	3,018,741
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	1,240,737	$	17,424	1.88%	$	1,259,198	$	12,126	1.29%
Time deposits		591,771		18,569	4.19%		441,442		9,193	2.78%
Total interest-bearing deposits		1,832,508		35,993	2.62%		1,700,640		21,319	1.68%
Other borrowings		—		—	—%		1,539		64	5.49%
Total interest-bearing liabilities		1,832,508	$	35,993	2.62%		1,702,179	$	21,383	1.68%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		907,722					1,016,034
Accrued interest and other liabilities		25,983					20,951
Total noninterest-bearing liabilities		933,705					1,036,985
Stockholders’ equity		306,562					279,577
Total liabilities and stockholders’ equity	$	3,072,775				$	3,018,741
Net interest income			$	65,607				$	65,144
Net interest spread					1.85%					2.20%
Net interest margin					2.87%					2.91%
Net interest margin FTE⁽³⁾					2.92%					2.94%
Cost of deposits					1.75%					1.05%
Cost of funds					1.61%					0.97%

^{(1)  Includes average outstanding balances of loans held for sale of $2.7 million and $2.5 million for the nine months ended September 30, 2024 and 2023, respectively.}
^{(2)  Nonaccrual loans are included as loans carrying a zero yield.}
^{(3)  Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.}

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

(dollars in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023
Tangible common equity
Total stockholders’ equity	$	324,318	$	306,990	$	281,951
Adjustments:
Intangible assets		(1,546)		(1,546)		(1,546)
Total tangible common equity (non-GAAP)	$	322,772	$	305,444	$	280,405
Realized common equity
Total stockholders’ equity	$	324,318	$	306,990	$	281,951
Adjustments:
Accumulated other comprehensive (income) loss		49,624		61,732		77,486
Total realized common equity (non-GAAP)	$	373,942	$	368,722	$	359,437
Common shares outstanding		6,826,120		6,886,928		7,150,685
Book value per share	$	47.51	$	44.58	$	39.43
Tangible book value per share (non-GAAP)	$	47.28	$	44.35	$	39.21
Realized book value per share (non-GAAP)	$	54.78	$	53.54	$	50.27

Tangible assets
Total assets	$	3,101,750	$	3,048,528	$	3,066,153
Adjustments:
Intangible assets		(1,546)		(1,546)		(1,546)
Total tangible assets (non-GAAP)	$	3,100,204	$	3,046,982	$	3,064,607
Total stockholders’ equity to assets		10.46%		10.07%		9.20%
Tangible common equity to tangible assets (non-GAAP)		10.41%		10.02%		9.15%

The MIL Network –

January 25, 2025

Category: Banking

Article | 30 October 2024Read time: 6 mins

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Why is IF-CAP being formed?

What will IF-CAP do?

What will IF-CAP not do?

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How does the leverage mechanism work?

Who are the partners supporting IF-CAP?

What sovereign portfolios will their guarantees cover?

Which countries are eligible for IF-CAP financing?

Will IF-CAP differ from ADB’s regular climate financing?

What are the benefits of IF-CAP?

Will IF-CAP contribute to ADB’s ambition of $100 billion climate financing for 2019-2030?

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Article | 30 October 2024
Read time: 6 mins