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MIL-OSI United Kingdom: Congratulations to Washington in Bloom volunteers!

Source: City of Sunderland

Washington Village in Bloom volunteers are celebrating after the village was named the overall winner in the Village category at the Britain in Bloom Awards 2024.

The village won Northumbria in Bloom earlier this year and was then chosen to go into the national competition, before being announced as the overall winner during the awards ceremony in Manchester this week.

This year, the volunteers also won the Exceptional Public Engagement Award for their work with the community. The Washington Village in Bloom volunteers work year-round alongside Sunderland City Council, local businesses, volunteers completing Duke of Edinburgh awards and extra volunteers from Barclay’s Bank on the floral displays and colourful flower beds that impressed the visiting judges.

In August this year, Washington in Bloom volunteers welcomed the Britain in Bloom judges as it celebrated Washington’s 60^thanniversary and the competition’s 60^th anniversary with a 1960’s ‘Flower Power’ themed celebration.

Joan Atkinson, Chair of Washington in Bloom, also won the Community Champion Award for her continued hard work on the village while she was undergoing chemotherapy and radiotherapy for breast cancer. She said: “You can’t enter the best village category – you have to be nominated by Northumbria in Bloom, so even being invited to the competition is a fantastic achievement for Washington Village. We are completely self-funded and rely on donations and the hard work and dedication of the Washington in Bloom volunteers.

“The volunteers deserve all the credit for the award. Whether its planting or removing leaves they are out working on the village every week in every season and their hard work has really paid off.”

Councillor Beth Jones, Washington Central ward councillor and Sunderland City Council’s Cabinet Member for Communities, Culture and Tourism, said: “I’d like to say a big congratulations to Joan on her award win and well done to the team of Washington in Bloom volunteers who have all worked hard towards Washington Village’s national award.

“The village looks absolutely stunning and it’s down to the hard work of all the brilliant volunteers and the collaborative efforts of council staff, local businesses, volunteers, local schools and residents. Everyone has done a fantastic job, and I’m delighted to see it recognised with this well-deserved award.”

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI: First Hawaiian, Inc. Reports Third Quarter 2024 Financial Results and Declares Dividend

Source: GlobeNewswire (MIL-OSI)

HONOLULU, Oct. 25, 2024 (GLOBE NEWSWIRE) — First Hawaiian, Inc. (NASDAQ:FHB), (“First Hawaiian” or the “Company”) today reported financial results for its quarter ended September 30, 2024.

“I’m happy to report that we had a very good third quarter,” said Bob Harrison, Chairman, President, and CEO. “Net interest income and noninterest income increased over the prior quarter, expenses were well controlled and credit quality remained excellent. I’m also pleased to report that during the third quarter, Moody’s reviewed and reaffirmed all of First Hawaiian Bank’s long-term credit and deposit ratings.”

On October 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.26 per share. The dividend will be payable on November 29, 2024, to stockholders of record at the close of business on November 18, 2024.

Third Quarter 2024 Highlights:

Net income of $61.5 million, or $0.48 per diluted share
Total loans and leases decreased $118.5 million versus the prior quarter
Total deposits decreased $91.1 million versus the prior quarter
Net interest margin increased 3 basis points to 2.95%
Recorded a $7.4 million provision for credit losses
Board of Directors declared a quarterly dividend of $0.26 per share

Balance Sheet

Total assets were $23.8 billion as of September 30, 2024, a decrease of $211.5 million, or 0.9%, from $24.0 billion as of June 30, 2024.

Gross loans and leases were $14.2 billion as of September 30, 2024, a decrease of $118.5 million, or 0.8%, from $14.4 billion as of June 30, 2024.

Total deposits were $20.2 billion as of September 30, 2024, a decrease of $91.1 million, or 0.4%, from $20.3 billion as of June 30, 2024.

Net Interest Income

Net interest income for the third quarter of 2024 was $156.7 million, an increase of $3.9 million, or 2.5%, compared to $152.9 million for the prior quarter.

The net interest margin was 2.95% in the third quarter of 2024, an increase of 3 basis points compared to 2.92% in the prior quarter.

Provision Expense

During the quarter ended September 30, 2024, we recorded a $7.4 million provision for credit losses. In the quarter ended June 30, 2024, we recorded a $1.8 million provision for credit losses.

Noninterest Income

Noninterest income was $53.3 million in the third quarter of 2024, an increase of $1.5 million compared to noninterest income of $51.8 million in the prior quarter.

Noninterest Expense

Noninterest expense was $126.1 million in the third quarter of 2024, an increase of $4.1 million compared to noninterest expense of $122.1 million in the prior quarter.

The efficiency ratio was 59.8% and 59.2% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

Taxes

The effective tax rate was 19.6% and 23.3% for the quarters ended September 30, 2024 and June 30, 2024, respectively.

Asset Quality

The allowance for credit losses was $163.7 million, or 1.15% of total loans and leases, as of September 30, 2024, compared to $160.5 million, or 1.12% of total loans and leases, as of June 30, 2024. The reserve for unfunded commitments was $33.7 million as of September 30, 2024 compared to $33.4 million as of June 30, 2024. Net charge-offs were $3.9 million, or 0.11% of average loans and leases on an annualized basis, for the quarter ended September 30, 2024, compared to net charge-offs of $2.5 million, or 0.07% of average loans and leases on an annualized basis, for the quarter ended June 30, 2024. Total non-performing assets were $17.8 million, or 0.13% of total loans and leases and other real estate owned, as of September 30, 2024, compared to $18.0 million, or 0.13% of total loans and leases and other real estate owned, as of June 30, 2024.

Capital

Total stockholders’ equity increased $97.7 million in the third quarter, and stood at $2.6 billion on September 30, 2024 and June 30, 2024.

The tier 1 leverage, common equity tier 1 and total capital ratios were 9.14%, 13.03% and 14.25%, respectively, on September 30, 2024, compared with 9.03%, 12.73% and 13.92%, respectively, on June 30, 2024.

The Company did not repurchase any shares in the third quarter.

First Hawaiian, Inc.

First Hawaiian, Inc. (NASDAQ:FHB) is a bank holding company headquartered in Honolulu, Hawaii. Its principal subsidiary, First Hawaiian Bank, founded in 1858 under the name Bishop & Company, is Hawaii’s oldest and largest financial institution with branch locations throughout Hawaii, Guam and Saipan. The company offers a comprehensive suite of banking services to consumer and commercial customers including deposit products, loans, wealth management, insurance, trust, retirement planning, credit card and merchant processing services. Customers may also access their accounts through ATMs, online and mobile banking channels. For more information about First Hawaiian, Inc., visit the Company’s website, www.fhb.com.

Conference Call Information

First Hawaiian will host a conference call to discuss the Company’s results today at 1:00 p.m. Eastern Time, 7:00 a.m. Hawaii Time.

To access the call by phone, participants will need to click on the following registration link: https://register.vevent.com/register/BIec8273f35cc340bcb13d27eae17d127b, register for the conference call, and then you will receive the dial-in number and a personalized PIN code. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

A live webcast of the conference call, including a slide presentation, will be available at the following link: www.fhb.com/earnings. The archive of the webcast will be available at the same location.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may”, “might”, “should”, “could”, “predict”, “potential”, “believe”, “expect”, “continue”, “will”, “anticipate”, “seek”, “estimate”, “intend”, “plan”, “projection”, “would”, “annualized” and “outlook”, or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there can be no assurance that actual results will not prove to be materially different from the results expressed or implied by the forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward-looking statements, including (without limitation) the risks and uncertainties associated with the domestic and global economic environment and capital market conditions and other risk factors. For a discussion of some of these risks and important factors that could affect our future results and financial condition, see our U.S. Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024.

Use of Non-GAAP Financial Measures
Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We believe that these measurements are useful for investors, regulators, management and others to evaluate financial performance and capital adequacy relative to other financial institutions. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results or financial condition as reported under GAAP. Investors should consider our performance and capital adequacy as reported under GAAP and all other relevant information when assessing our performance and capital adequacy.

Table 14 at the end of this document provides a reconciliation of these non-GAAP financial measures with their most directly comparable GAAP measures.


Financial Highlights	Table 1
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands, except per share data)	2024			2024			2023			2024			2023
Operating Results:
Net interest income	$	156,707		$	152,851		$	157,148		$	463,985		$	484,334
Provision for credit losses		7,400			1,800			7,500			15,500			21,300
Noninterest income		53,288			51,768			46,097			156,427			142,468
Noninterest expense		126,147			122,086			119,383			377,046			358,831
Net income		61,492			61,921			58,221			177,633			187,481
Basic earnings per share		0.48			0.48			0.46			1.39			1.47
Diluted earnings per share		0.48			0.48			0.46			1.38			1.47
Dividends declared per share		0.26			0.26			0.26			0.78			0.78
Dividend payout ratio		54.17	%		54.17	%		56.52	%		56.52	%		53.06	%
Performance Ratios⁽¹⁾:
Net interest margin		2.95	%		2.92	%		2.86	%		2.93	%		2.96	%
Efficiency ratio		59.77	%		59.22	%		58.31	%		60.38	%		56.86	%
Return on average total assets		1.02	%		1.04	%		0.93	%		0.99	%		1.01	%
Return on average tangible assets (non-GAAP)⁽²⁾		1.06	%		1.08	%		0.97	%		1.03	%		1.06	%
Return on average total stockholders’ equity		9.45	%		9.91	%		9.76	%		9.37	%		10.72	%
Return on average tangible stockholders’ equity (non-GAAP)⁽²⁾		15.35	%		16.42	%		16.84	%		15.43	%		18.68	%
Average Balances:
Average loans and leases	$	14,304,806		$	14,358,049		$	14,349,402		$	14,325,065		$	14,238,309
Average earning assets		21,328,882			21,247,707			22,060,480			21,352,739			22,040,704
Average assets		24,046,696			23,958,913			24,727,893			24,064,208			24,699,826
Average deposits		20,367,805			20,308,028			21,212,102			20,415,746			21,245,055
Average stockholders’ equity		2,588,806			2,512,471			2,367,422			2,532,911			2,337,292
Market Value Per Share:
Closing		23.15			20.76			18.05			23.15			18.05
High		26.18			22.68			22.59			26.18			28.28
Low		20.28			19.48			17.41			19.48			15.08


	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share data)	2024			2024			2023			2023
Balance Sheet Data:
Loans and leases	$	14,241,370		$	14,359,899		$	14,353,497		$	14,332,335
Total assets		23,780,285			23,991,791			24,926,474			24,912,524
Total deposits		20,227,702			20,318,832			21,332,657			21,511,489
Short-term borrowings		250,000			500,000			500,000			500,000
Total stockholders’ equity		2,648,034			2,550,312			2,486,066			2,351,009

Per Share of Common Stock:
Book value	$	20.71		$	19.94		$	19.48		$	18.42
Tangible book value (non-GAAP)⁽²⁾		12.92			12.16			11.68			10.62

Asset Quality Ratios:
Non-accrual loans and leases / total loans and leases		0.13	%		0.13	%		0.13	%		0.10	%
Allowance for credit losses for loans and leases / total loans and leases		1.15	%		1.12	%		1.09	%		1.08	%

Capital Ratios:
Common Equity Tier 1 Capital Ratio		13.03	%		12.73	%		12.39	%		12.21	%
Tier 1 Capital Ratio		13.03	%		12.73	%		12.39	%		12.21	%
Total Capital Ratio		14.25	%		13.92	%		13.57	%		13.38	%
Tier 1 Leverage Ratio		9.14	%		9.03	%		8.64	%		8.45	%
Total stockholders’ equity to total assets		11.14	%		10.63	%		9.97	%		9.44	%
Tangible stockholders’ equity to tangible assets (non-GAAP)⁽²⁾		7.25	%		6.76	%		6.23	%		5.67	%

Non-Financial Data:
Number of branches		48			48			50			50
Number of ATMs		273			272			275			294
Number of Full-Time Equivalent Employees		2,022			2,032			2,089			2,087

⁽¹⁾Except for the efficiency ratio, amounts are annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

⁽²⁾Return on average tangible assets, return on average tangible stockholders’ equity, tangible book value per share and tangible stockholders’ equity to tangible assets are non-GAAP financial measures. We compute our return on average tangible assets as the ratio of net income to average tangible assets, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total assets. We compute our return on average tangible stockholders’ equity as the ratio of net income to average tangible stockholders’ equity, which is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our average total stockholders’ equity. We compute our tangible book value per share as the ratio of tangible stockholders’ equity to outstanding shares. Tangible stockholders’ equity is calculated by subtracting (and thereby effectively excluding) amounts related to the effect of goodwill from our total stockholders’ equity. We compute our tangible stockholders’ equity to tangible assets as the ratio of tangible stockholders’ equity to tangible assets, each of which we calculate by subtracting (and thereby effectively excluding) the value of our goodwill. For a reconciliation to the most directly comparable GAAP financial measure, see Table 14, GAAP to Non-GAAP Reconciliation.


Consolidated Statements of Income	Table 2
	For the Three Months Ended						For the Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
(dollars in thousands, except per share amounts)	2024		2024		2023		2024		2023
Interest income
Loans and lease financing	$	205,682	$	202,068	$	194,098	$	607,594	$	551,777
Available-for-sale investment securities		12,850		14,143		18,426		41,539		55,208
Held-to-maturity investment securities		16,937		17,575		18,271		52,305		55,510
Other		14,527		11,148		9,004		38,444		20,054
Total interest income		249,996		244,934		239,799		739,882		682,549
Interest expense
Deposits		87,500		85,609		74,651		257,252		176,006
Short-term and long-term borrowings		5,397		5,953		6,838		17,303		20,057
Other		392		521		1,162		1,342		2,152
Total interest expense		93,289		92,083		82,651		275,897		198,215
Net interest income		156,707		152,851		157,148		463,985		484,334
Provision for credit losses		7,400		1,800		7,500		15,500		21,300
Net interest income after provision for credit losses		149,307		151,051		149,648		448,485		463,034
Noninterest income
Service charges on deposit accounts		7,783		7,793		7,524		23,122		22,001
Credit and debit card fees		17,533		15,861		15,748		49,567		47,507
Other service charges and fees		11,790		11,036		9,546		32,730		27,764
Trust and investment services income		9,077		9,426		9,742		28,857		28,804
Bank-owned life insurance		4,502		3,360		1,872		12,148		10,263
Other		2,603		4,292		1,665		10,003		6,129
Total noninterest income		53,288		51,768		46,097		156,427		142,468
Noninterest expense
Salaries and employee benefits		59,563		57,737		55,937		176,562		169,873
Contracted services and professional fees		14,634		16,067		16,393		46,440		50,204
Occupancy		6,945		7,377		6,711		21,263		22,047
Equipment		13,078		13,196		11,826		39,687		32,562
Regulatory assessment and fees		3,412		3,814		4,149		15,346		11,661
Advertising and marketing		1,813		1,765		2,289		6,190		6,174
Card rewards program		8,678		8,719		8,358		25,905		24,124
Other		18,024		13,411		13,720		45,653		42,186
Total noninterest expense		126,147		122,086		119,383		377,046		358,831
Income before provision for income taxes		76,448		80,733		76,362		227,866		246,671
Provision for income taxes		14,956		18,812		18,141		50,233		59,190
Net income	$	61,492	$	61,921	$	58,221	$	177,633	$	187,481
Basic earnings per share	$	0.48	$	0.48	$	0.46	$	1.39	$	1.47
Diluted earnings per share	$	0.48	$	0.48	$	0.46	$	1.38	$	1.47
Basic weighted-average outstanding shares		127,886,167		127,867,853		127,609,860		127,820,737		127,552,255
Diluted weighted-average outstanding shares		128,504,035		128,262,594		127,936,440		128,362,433		127,897,829


Consolidated Balance Sheets	Table 3
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except share amount)	2024			2024			2023			2023
Assets
Cash and due from banks	$	252,209		$	290,501		$	185,015		$	246,028
Interest-bearing deposits in other banks		820,603			824,258			1,554,882			967,400
Investment securities:
Available-for-sale, at fair value (amortized cost: $2,290,781 as of September 30, 2024, $2,379,004 as of June 30, 2024, $2,558,675 as of December 31, 2023 and $3,172,031 as of September 30, 2023)		2,055,959			2,067,956			2,255,336			2,722,704
Held-to-maturity, at amortized cost (fair value: $3,475,143 as of September 30, 2024, $3,401,006 as of June 30, 2024, $3,574,856 as of December 31, 2023 and $3,433,029 as of September 30, 2023)		3,853,697			3,917,175			4,041,449			4,104,114
Loans held for sale		—			2,820			190			—
Loans and leases		14,241,370			14,359,899			14,353,497			14,332,335
Less: allowance for credit losses		163,700			160,517			156,533			154,795
Net loans and leases		14,077,670			14,199,382			14,196,964			14,177,540

Premises and equipment, net		287,036			283,762			281,461			277,805
Accrued interest receivable		81,875			82,512			84,417			84,327
Bank-owned life insurance		490,135			486,261			479,907			477,698
Goodwill		995,492			995,492			995,492			995,492
Mortgage servicing rights		5,236			5,395			5,699			5,855
Other assets		860,373			836,277			845,662			853,561
Total assets	$	23,780,285		$	23,991,791		$	24,926,474		$	24,912,524
Liabilities and Stockholders’ Equity
Deposits:
Interest-bearing	$	13,427,674		$	13,461,365		$	13,749,095		$	13,612,493
Noninterest-bearing		6,800,028			6,857,467			7,583,562			7,898,996
Total deposits		20,227,702			20,318,832			21,332,657			21,511,489
Short-term borrowings		250,000			500,000			500,000			500,000
Retirement benefits payable		100,448			101,304			103,285			99,685
Other liabilities		554,101			521,343			504,466			450,341
Total liabilities		21,132,251			21,441,479			22,440,408			22,561,515

Stockholders’ equity
Common stock ($0.01 par value; authorized 300,000,000 shares; issued/outstanding: 141,735,601 / 127,886,167 shares as of September 30, 2024, issued/outstanding: 141,728,446 / 127,879,012 shares as of June 30, 2024, issued/outstanding: 141,340,539 / 127,618,761 shares as of December 31, 2023 and issued/outstanding: 141,330,663 / 127,609,934 shares as of September 30, 2023)		1,417			1,417			1,413			1,413
Additional paid-in capital		2,558,158			2,554,795			2,548,250			2,545,659
Retained earnings		915,062			887,176			837,859			823,895
Accumulated other comprehensive loss, net		(452,658	)		(519,132	)		(530,210	)		(648,731	)
Treasury stock (13,849,434 shares as of September 30, 2024, 13,849,434 shares as of June 30, 2024, 13,721,778 shares as of December 31, 2023 and 13,720,729 shares as of September 30, 2023)		(373,945	)		(373,944	)		(371,246	)		(371,227	)
Total stockholders’ equity		2,648,034			2,550,312			2,486,066			2,351,009
Total liabilities and stockholders’ equity	$	23,780,285		$	23,991,791		$	24,926,474		$	24,912,524


Average Balances and Interest Rates																	Table 4
	Three Months Ended						Three Months Ended						Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	1,020.4	$	13.9	5.40	%	$	773.4	$	10.5	5.45	%	$	608.6	$	8.2	5.36	%
Available-for-Sale Investment Securities
Taxable		2,062.6		12.8	2.48			2,100.7		14.1	2.69			2,834.6		18.4	2.59
Non-Taxable		1.5		—	5.06			1.5		—	5.76			2.3		—	5.48
Held-to-Maturity Investment Securities
Taxable		3,288.2		13.8	1.67			3,358.2		14.4	1.71			3,544.1		15.0	1.70
Non-Taxable		602.3		3.7	2.46			602.9		4.0	2.64			604.3		4.1	2.66
Total Investment Securities		5,954.6		30.3	2.03			6,063.3		32.5	2.15			6,985.3		37.5	2.14
Loans Held for Sale		2.2		—	5.64			1.0		—	6.58			0.4		—	6.63
Loans and Leases⁽¹⁾
Commercial and industrial		2,165.3		38.0	6.98			2,201.6		38.1	6.96			2,123.5		35.7	6.66
Commercial real estate		4,278.3		71.6	6.67			4,305.6		71.5	6.68			4,381.8		71.4	6.47
Construction		1,040.7		20.3	7.74			984.8		18.5	7.57			873.7		15.5	7.05
Residential:
Residential mortgage		4,204.5		40.4	3.84			4,229.4		40.1	3.80			4,316.3		40.1	3.72
Home equity line		1,158.5		13.2	4.52			1,164.2		12.6	4.35			1,154.0		10.1	3.45
Consumer		1,035.3		18.7	7.19			1,054.1		17.7	6.74			1,172.8		18.3	6.19
Lease financing		422.2		4.0	3.72			418.3		4.3	4.09			327.3		3.7	4.48
Total Loans and Leases		14,304.8		206.2	5.74			14,358.0		202.8	5.67			14,349.4		194.8	5.39
Other Earning Assets		46.9		0.7	5.83			52.0		0.7	5.25			116.8		0.8	2.64
Total Earning Assets⁽²⁾		21,328.9		251.1	4.69			21,247.7		246.5	4.66			22,060.5		241.3	4.35
Cash and Due from Banks		242.3						240.4						276.0
Other Assets		2,475.5						2,470.8						2,391.4
Total Assets	$	24,046.7					$	23,958.9					$	24,727.9

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	5,963.1	$	23.6	1.57	%	$	6,000.4	$	23.4	1.57	%	$	5,982.5	$	19.2	1.27	%
Money Market		4,179.5		31.9	3.04			4,076.7		30.6	3.02			3,907.2		24.7	2.51
Time		3,327.3		32.0	3.83			3,284.3		31.6	3.87			3,362.7		30.8	3.63
Total Interest-Bearing Deposits		13,469.9		87.5	2.58			13,361.4		85.6	2.58			13,252.4		74.7	2.23
Other Short-Term Borrowings		451.1		5.4	4.76			500.0		6.0	4.79			113.1		1.5	5.17
Long-Term Borrowings		—		—	—			—		—	—			440.2		5.3	4.83
Other Interest-Bearing Liabilities		22.4		0.4	6.97			38.2		0.5	5.48			89.1		1.2	5.17
Total Interest-Bearing Liabilities		13,943.4		93.3	2.66			13,899.6		92.1	2.66			13,894.8		82.7	2.36
Net Interest Income			$	157.8					$	154.4					$	158.6
Interest Rate Spread⁽³⁾					2.03	%					2.00	%					1.99	%
Net Interest Margin⁽⁴⁾					2.95	%					2.92	%					2.86	%
Noninterest-Bearing Demand Deposits		6,897.9						6,946.6						7,959.7
Other Liabilities		616.6						600.2						506.0
Stockholders’ Equity		2,588.8						2,512.5						2,367.4
Total Liabilities and Stockholders’ Equity	$	24,046.7					$	23,958.9					$	24,727.9

⁽¹⁾Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

⁽²⁾Interest income includes taxable-equivalent basis adjustments of $1.1 million, $1.5 million and $1.5 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

⁽³⁾Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

⁽⁴⁾Net interest margin is net interest income annualized for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, on a fully taxable-equivalent basis, divided by average total earning assets.


Average Balances and Interest Rates											Table 5
	Nine Months Ended						Nine Months Ended
	September 30, 2024						September 30, 2023
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	884.6	$	35.9	5.43	%	$	493.6	$	18.8	5.10	%
Available-for-Sale Investment Securities
Taxable		2,124.4		41.5	2.61			2,964.0		54.8	2.47
Non-Taxable		1.6		0.1	5.49			13.0		0.5	5.57
Held-to-Maturity Investment Securities
Taxable		3,354.0		42.7	1.70			3,615.0		46.0	1.70
Non-Taxable		602.9		11.7	2.58			608.9		11.9	2.62
Total Investment Securities		6,082.9		96.0	2.10			7,200.9		113.2	2.10
Loans Held for Sale		1.3		0.1	6.11			0.3		—	6.11
Loans and Leases⁽¹⁾
Commercial and industrial		2,177.2		113.3	6.95			2,193.8		104.3	6.35
Commercial real estate		4,302.4		213.4	6.62			4,224.7		194.6	6.16
Construction		983.6		56.2	7.63			874.0		45.4	6.95
Residential:
Residential mortgage		4,232.6		122.5	3.86			4,312.4		117.6	3.64
Home equity line		1,164.9		37.8	4.34			1,116.4		27.9	3.35
Consumer		1,057.6		54.4	6.87			1,194.1		53.2	5.95
Lease financing		406.8		11.9	3.90			322.9		10.5	4.34
Total Loans and Leases		14,325.1		609.5	5.68			14,238.3		553.5	5.19
Other Earning Assets		58.8		2.5	5.69			107.6		1.3	1.53
Total Earning Assets⁽²⁾		21,352.7		744.0	4.65			22,040.7		686.8	4.16
Cash and Due from Banks		242.4						273.3
Other Assets		2,469.1						2,385.8
Total Assets	$	24,064.2					$	24,699.8

Interest-Bearing Liabilities
Interest-Bearing Deposits
Savings	$	6,007.6	$	70.5	1.57	%	$	6,144.1	$	49.1	1.07	%
Money Market		4,067.5		91.3	3.00			3,857.0		58.6	2.03
Time		3,312.3		95.5	3.85			2,921.8		68.3	3.12
Total Interest-Bearing Deposits		13,387.4		257.3	2.57			12,922.9		176.0	1.82
Federal Funds Purchased		—		—	—			23.0		0.8	4.45
Other Short-Term Borrowings		483.6		17.3	4.78			176.5		6.8	5.15
Long-Term Borrowings		—		—	—			349.8		12.5	4.78
Other Interest-Bearing Liabilities		31.1		1.3	5.75			62.1		2.1	4.63
Total Interest-Bearing Liabilities		13,902.1		275.9	2.65			13,534.3		198.2	1.96
Net Interest Income			$	468.1					$	488.6
Interest Rate Spread⁽³⁾					2.00	%					2.20	%
Net Interest Margin⁽⁴⁾					2.93	%					2.96	%
Noninterest-Bearing Demand Deposits		7,028.4						8,322.2
Other Liabilities		600.8						506.0
Stockholders’ Equity		2,532.9						2,337.3
Total Liabilities and Stockholders’ Equity	$	24,064.2					$	24,699.8

⁽¹⁾Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

⁽²⁾Interest income includes taxable-equivalent basis adjustments of $4.1 million and $4.2 million for the nine months ended September 30, 2024 and 2023, respectively.

⁽³⁾Interest rate spread is the difference between the average yield on earning assets and the average rate paid on interest-bearing liabilities, on a fully taxable-equivalent basis.

⁽⁴⁾Net interest margin is net interest income annualized for the nine months ended September 30, 2024 and 2023, on a fully taxable-equivalent basis, divided by average total earning assets.

Analysis of Change in Net Interest Income

Table 6

Three Months Ended September 30, 2024

Compared to June 30, 2024

(dollars in millions)

Volume

Rate

Total ⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

$

3.5

$

(0.1

)

$

3.4

Available-for-Sale Investment Securities

Taxable

(0.2

)

(1.1

)

(1.3

)

Held-to-Maturity Investment Securities

Taxable

(0.3

)

(0.3

)

(0.6

)

Non-Taxable

—

(0.3

)

(0.3

)

Total Investment Securities

(0.5

)

(1.7

)

(2.2

)

Loans and Leases

Commercial and industrial

(0.3

)

0.2

(0.1

)

Commercial real estate

—

0.1

Construction

1.3

0.5

1.8

Residential:

Residential mortgage

(0.2

)

0.5

0.3

Home equity line

—

0.6

Consumer

(0.3

)

1.3

1.0

Lease financing

—

(0.3

)

(0.3

)

Total Loans and Leases

0.5

2.9

3.4

Other Earning Assets

(0.1

)

0.1

—

Total Change in Interest Income

3.4

1.2

4.6

Change in Interest Expense:

Interest-Bearing Deposits

Savings

—

0.2

Money Market

1.0

0.3

1.3

Time

0.6

(0.2

)

0.4

Total Interest-Bearing Deposits

1.6

0.3

1.9

Other Short-Term Borrowings

(0.5

)

(0.1

)

(0.6

)

Other Interest-Bearing Liabilities

(0.2

)

0.1

(0.1

)

Total Change in Interest Expense

0.9

0.3

1.2

Change in Net Interest Income

$

2.5

$

0.9

$

3.4

⁽¹⁾The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income

Table 7

Three Months Ended September 30, 2024

Compared to September 30, 2023

(dollars in millions)

Volume

Rate

Total ⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

$

5.6

$

0.1

$

5.7

Available-for-Sale Investment Securities

Taxable

(4.8

)

(0.8

)

(5.6

)

Held-to-Maturity Investment Securities

Taxable

(1.0

)

(0.2

)

(1.2

)

Non-Taxable

—

(0.4

)

(0.4

)

Total Investment Securities

(5.8

)

(1.4

)

(7.2

)

Loans and Leases

Commercial and industrial

0.7

1.6

2.3

Commercial real estate

(1.8

)

2.0

0.2

Construction

3.2

1.6

4.8

Residential:

Residential mortgage

(1.0

)

1.3

0.3

Home equity line

—

3.1

Consumer

(2.3

)

2.7

0.4

Lease financing

0.9

(0.6

)

0.3

Total Loans and Leases

(0.3

)

11.7

11.4

Other Earning Assets

(0.7

)

0.6

(0.1

)

Total Change in Interest Income

(1.2

)

11.0

9.8

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(0.1

)

4.5

4.4

Money Market

1.8

5.4

7.2

Time

(0.3

)

1.5

1.2

Total Interest-Bearing Deposits

1.4

11.4

12.8

Other Short-Term Borrowings

4.0

(0.1

)

3.9

Long-Term Borrowings

(2.6

)

(2.7

)

(5.3

)

Other Interest-Bearing Liabilities

(1.1

)

0.3

(0.8

)

Total Change in Interest Expense

1.7

8.9

10.6

Change in Net Interest Income

$

(2.9

)

$

2.1

$

(0.8

)

⁽¹⁾The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

Analysis of Change in Net Interest Income

Table 8

Nine Months Ended September 30, 2024

Compared to September 30, 2023

(dollars in millions)

Volume

Rate

Total ⁽¹⁾

Change in Interest Income:

Interest-Bearing Deposits in Other Banks

$

15.8

$

1.3

$

17.1

Available-for-Sale Investment Securities

Taxable

(16.3

)

3.0

(13.3

)

Non-Taxable

(0.4

)

—

(0.4

)

Held-to-Maturity Investment Securities

Taxable

(3.3

)

—

(3.3

)

Non-Taxable

(0.1

)

(0.1

)

(0.2

)

Total Investment Securities

(20.1

)

2.9

(17.2

)

Loans Held for Sale

0.1

—

0.1

Loans and Leases

Commercial and industrial

(0.8

)

9.8

9.0

Commercial real estate

3.7

15.1

18.8

Construction

6.1

4.7

10.8

Residential:

Residential mortgage

(2.2

)

7.1

4.9

Home equity line

1.3

8.6

9.9

Consumer

(6.5

)

7.7

1.2

Lease financing

2.5

(1.1

)

1.4

Total Loans and Leases

4.1

51.9

56.0

Other Earning Assets

(0.8

)

2.0

1.2

Total Change in Interest Income

(0.9

)

58.1

57.2

Change in Interest Expense:

Interest-Bearing Deposits

Savings

(1.1

)

22.5

21.4

Money Market

3.4

29.3

32.7

Time

9.9

17.3

27.2

Total Interest-Bearing Deposits

12.2

69.1

81.3

Federal Funds Purchased

(0.4

)

(0.4

)

(0.8

)

Other Short-Term Borrowings

11.0

(0.5

)

10.5

Long-Term Borrowings

(6.3

)

(6.2

)

(12.5

)

Other Interest-Bearing Liabilities

(1.2

)

0.4

(0.8

)

Total Change in Interest Expense

15.3

62.4

77.7

Change in Net Interest Income

$

(16.2

)

$

(4.3

)

$

(20.5

)

⁽¹⁾The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.


Loans and Leases								Table 9
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2024		2024		2023		2023
Commercial and industrial	$	2,110,077	$	2,208,690	$	2,165,349	$	2,101,442
Commercial real estate		4,265,289		4,305,017		4,340,243		4,387,751
Construction		1,056,249		1,017,649		900,292		885,112
Residential:
Residential mortgage		4,187,060		4,216,416		4,283,315		4,303,924
Home equity line		1,159,823		1,159,833		1,174,588		1,167,388
Total residential		5,346,883		5,376,249		5,457,903		5,471,312
Consumer		1,030,044		1,027,104		1,109,901		1,154,203
Lease financing		432,828		425,190		379,809		332,515
Total loans and leases	$	14,241,370	$	14,359,899	$	14,353,497	$	14,332,335


Deposits								Table 10
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2024		2024		2023		2023
Demand	$	6,800,028	$	6,857,467	$	7,583,562	$	7,898,996
Savings		5,896,029		6,055,051		6,445,084		6,028,308
Money Market		4,129,381		4,111,609		3,847,853		3,923,054
Time		3,402,264		3,294,705		3,456,158		3,661,131
Total Deposits	$	20,227,702	$	20,318,832	$	21,332,657	$	21,511,489


Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More								Table 11
	September 30,		June 30,		December 31,		September 30,
(dollars in thousands)	2024		2024		2023		2023
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial Loans:
Commercial and industrial	$	934	$	1,084	$	970	$	988
Commercial real estate		152		3,085		2,953		—
Construction		—		447		—		—
Total Commercial Loans		1,086		4,616		3,923		988
Residential Loans:
Residential mortgage		9,103		7,273		7,620		7,435
Home equity line		7,645		6,124		7,052		6,200
Total Residential Loans		16,748		13,397		14,672		13,635
Total Non-Accrual Loans and Leases		17,834		18,013		18,595		14,623
Total Non-Performing Assets	$	17,834	$	18,013	$	18,595	$	14,623

Accruing Loans and Leases Past Due 90 Days or More
Commercial Loans:
Commercial and industrial	$	529	$	110	$	494	$	289
Commercial real estate		568		—		300		170
Total Commercial Loans		1,097		110		794		459
Residential mortgage		931		1,820		—		1,430
Consumer		2,515		1,835		2,702		1,681
Total Accruing Loans and Leases Past Due 90 Days or More	$	4,543	$	3,765	$	3,496	$	3,570

Total Loans and Leases	$	14,241,370	$	14,359,899	$	14,353,497	$	14,332,335


Allowance for Credit Losses and Reserve for Unfunded Commitments																		Table 12
	For the Three Months Ended												For the Nine Months Ended
	September 30,				June 30,				September 30,				September 30,				September 30,
(dollars in thousands)	2024				2024				2023				2024				2023
Balance at Beginning of Period	$	193,930			$	194,649			$	184,780			$	192,138			$	177,735
Loans and Leases Charged-Off
Commercial Loans:
Commercial and industrial		(1,178	)			(677	)			(784	)			(2,764	)			(2,572	)
Commercial real estate		(400	)			—				—				(400	)			—
Total Commercial Loans		(1,578	)			(677	)			(784	)			(3,164	)			(2,572	)
Residential Loans:
Residential mortgage		—				—				—				—				(122	)
Home equity line		—				—				—				—				(272	)
Total Residential Loans		—				—				—				—				(394	)
Consumer		(4,192	)			(4,182	)			(3,665	)			(13,228	)			(12,963	)
Total Loans and Leases Charged-Off		(5,770	)			(4,859	)			(4,449	)			(16,392	)			(15,929	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial and industrial		160				250				2,637				621				3,175
Residential Loans:
Residential mortgage		31				28				53				89				110
Home equity line		86				112				303				242				539
Total Residential Loans		117				140				356				331				649
Consumer		1,560				1,950				1,746				5,199				5,640
Total Recoveries on Loans and Leases Previously Charged-Off		1,837				2,340				4,739				6,151				9,464
Net Loans and Leases (Charged-Off) Recovered		(3,933	)			(2,519	)			290				(10,241	)			(6,465	)
Provision for Credit Losses		7,400				1,800				7,500				15,500				21,300
Balance at End of Period	$	197,397			$	193,930			$	192,570			$	197,397			$	192,570
Components:
Allowance for Credit Losses	$	163,700			$	160,517			$	154,795			$	163,700			$	154,795
Reserve for Unfunded Commitments		33,697				33,413				37,775				33,697				37,775
Total Allowance for Credit Losses and Reserve for Unfunded Commitments	$	197,397			$	193,930			$	192,570			$	197,397			$	192,570
Average Loans and Leases Outstanding	$	14,304,806			$	14,358,049			$	14,349,402			$	14,325,065			$	14,238,309
Ratio of Net Loans and Leases Charged-Off (Recovered) to Average Loans and Leases Outstanding⁽¹⁾		0.11		%		0.07		%		(0.01	)	%		0.10		%		0.06		%
Ratio of Allowance for Credit Losses for Loans and Leases to Loans and Leases Outstanding		1.15		%		1.12		%		1.08		%		1.15		%		1.08		%
Ratio of Allowance for Credit Losses for Loans and Leases to Non-accrual Loans and Leases		9.18x				8.91x				10.59x				9.18x				10.59x

⁽¹⁾Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

Loans and Leases by Year of Origination and Credit Quality Indicator

Table 13

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

Amortized

(dollars in thousands)

2024

2023

2022

2021

2020

Prior

Cost Basis

Total

Commercial Lending

Commercial and Industrial

Risk rating:

Pass

$

100,174

$

82,175

$

191,861

$

256,997

$

20,866

$

266,720

$

1,026,457

$

13,396

$

1,958,646

Special Mention

303

1

7,327

48

398

1,371

18,239

—

27,687

Substandard

—

8,251

219

358

2,033

32,296

—

43,157

Other ⁽¹⁾

10,797

10,542

7,779

3,074

1,052

1,723

45,620

—

80,587

Total Commercial and Industrial

111,274

92,718

215,218

260,338

22,674

271,847

1,122,612

13,396

2,110,077

Current period gross charge-offs

—

578

333

89

221

1,543

—

2,764

Commercial Real Estate

Risk rating:

Pass

118,884

347,480

810,746

649,133

325,887

1,774,529

87,188

7,760

4,121,607

Special Mention

3,587

2,261

7,537

41,384

3,306

11,973

7,815

—

77,863

Substandard

—

54,984

1,003

—

9,548

149

—

65,684

Other ⁽¹⁾

—

135

—

135

Total Commercial Real Estate

122,471

349,741

873,267

691,520

329,193

1,796,185

95,152

7,760

4,265,289

Current period gross charge-offs

—

400

—

400

Construction

Risk rating:

Pass

61,677

246,176

361,974

241,212

58,820

46,344

4,484

—

1,020,687

Special Mention

—

164

—

164

Other ⁽¹⁾

4,970

9,468

12,022

3,575

1,199

3,463

701

—

35,398

Total Construction

66,647

255,644

373,996

244,787

60,019

49,971

5,185

—

1,056,249

Current period gross charge-offs

—

Lease Financing

Risk rating:

Pass

126,380

105,523

66,764

15,483

23,133

89,254

—

426,537

Special Mention

—

42

100

300

5

—

447

Substandard

4,899

602

343

—

5,844

Total Lease Financing

131,279

106,167

67,207

15,783

23,138

89,254

—

432,828

Current period gross charge-offs

—

Total Commercial Lending

$

431,671

$

804,270

$

1,529,688

$

1,212,428

$

435,024

$

2,207,257

$

1,222,949

$

21,156

$

7,864,443

Current period gross charge-offs

$

—

$

578

$

333

$

89

$

221

$

1,943

$

—

$

—

$

3,164

Revolving

Loans

Converted

Term Loans

Revolving

to Term

Amortized Cost Basis by Origination Year

Loans

(continued)

Amortized

(dollars in thousands)

2024

2023

2022

2021

2020

Prior

Cost Basis

Total

Residential Lending

Residential Mortgage

FICO:

740 and greater

$

113,307

$

206,224

$

504,141

$

956,983

$

503,160

$

1,129,857

$

—

$

—

$

3,413,672

680 – 739

11,614

28,638

65,128

109,018

66,719

157,263

—

438,380

620 – 679

1,519

1,792

22,921

19,854

11,651

37,979

—

95,716

550 – 619

—

896

3,703

6,707

2,269

15,751

—

29,326

Less than 550

—

286

2,380

3,818

2,959

5,569

—

15,012

No Score ⁽³⁾

543

7,117

16,923

10,512

5,553

52,526

—

93,174

Other ⁽²⁾

8,148

12,786

16,721

14,776

11,222

30,022

8,105

—

101,780

Total Residential Mortgage

135,131

257,739

631,917

1,121,668

603,533

1,428,967

8,105

—

4,187,060

Current period gross charge-offs

—

Home Equity Line

FICO:

740 and greater

—

930,909

1,730

932,639

680 – 739

—

167,097

1,137

168,234

620 – 679

—

36,540

985

37,525

550 – 619

—

14,514

581

15,095

Less than 550

—

4,477

571

5,048

No Score ⁽³⁾

—

1,282

—

1,282

Total Home Equity Line

—

1,154,819

5,004

1,159,823

Current period gross charge-offs

—

Total Residential Lending

$

135,131

$

257,739

$

631,917

$

1,121,668

$

603,533

$

1,428,967

$

1,162,924

$

5,004

$

5,346,883

Current period gross charge-offs

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Consumer Lending

FICO:

740 and greater

71,777

71,423

94,710

51,952

18,512

10,435

121,278

128

440,215

680 – 739

51,651

51,667

49,864

23,959

9,995

7,497

77,278

525

272,436

620 – 679

21,223

20,604

21,700

12,515

5,155

5,577

35,665

851

123,290

550 – 619

4,116

7,348

9,802

5,983

2,862

3,862

12,674

825

47,472

Less than 550

1,071

3,266

6,247

3,999

1,783

2,492

4,836

525

24,219

No Score ⁽³⁾

2,291

117

47

—

7

8

42,658

205

45,333

Other ⁽²⁾

—

296

911

101

981

74,790

—

77,079

Total Consumer Lending

$

152,129

$

154,425

$

182,666

$

99,319

$

38,415

$

30,852

$

369,179

$

3,059

$

1,030,044

Current period gross charge-offs

$

385

$

1,403

$

2,107

$

1,085

$

518

$

2,234

$

4,952

$

544

$

13,228

Total Loans and Leases

$

718,931

$

1,216,434

$

2,344,271

$

2,433,415

$

1,076,972

$

3,667,076

$

2,755,052

$

29,219

$

14,241,370

Current period gross charge-offs

$

385

$

1,981

$

2,440

$

1,174

$

739

$

4,177

$

4,952

$

544

$

16,392

⁽¹⁾Other credit quality indicators used for monitoring purposes are primarily FICO scores. The majority of the loans in this population were originated to borrowers with a prime FICO score. As of September 30, 2024, the majority of the loans in this population were current.

⁽²⁾Other credit quality indicators used for monitoring purposes are primarily internal risk ratings. The majority of the loans in this population were graded with a “Pass” rating. As of September 30, 2024, the majority of the loans in this population were current.

⁽³⁾No FICO scores are primarily related to loans and leases extended to non-residents. Loans and leases of this nature are primarily secured by collateral and/or are closely monitored for performance.


GAAP to Non-GAAP Reconciliation	Table 14
	For the Three Months Ended									For the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(dollars in thousands)	2024			2024			2023			2024			2023
Income Statement Data:
Net income	$	61,492		$	61,921		$	58,221		$	177,633		$	187,481

Average total stockholders’ equity	$	2,588,806		$	2,512,471		$	2,367,422		$	2,532,911		$	2,337,292
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible stockholders’ equity	$	1,593,314		$	1,516,979		$	1,371,930		$	1,537,419		$	1,341,800

Average total assets	$	24,046,696		$	23,958,913		$	24,727,893		$	24,064,208		$	24,699,826
Less: average goodwill		995,492			995,492			995,492			995,492			995,492
Average tangible assets	$	23,051,204		$	22,963,421		$	23,732,401		$	23,068,716		$	23,704,334

Return on average total stockholders’ equity⁽¹⁾		9.45	%		9.91	%		9.76	%		9.37	%		10.72	%
Return on average tangible stockholders’ equity (non-GAAP)⁽¹⁾		15.35	%		16.42	%		16.84	%		15.43	%		18.68	%

Return on average total assets⁽¹⁾		1.02	%		1.04	%		0.93	%		0.99	%		1.01	%
Return on average tangible assets (non-GAAP)⁽¹⁾		1.06	%		1.08	%		0.97	%		1.03	%		1.06	%



	As of			As of			As of			As of
	September 30,			June 30,			December 31,			September 30,
(dollars in thousands, except per share amounts)	2024			2024			2023			2023
Balance Sheet Data:
Total stockholders’ equity	$	2,648,034		$	2,550,312		$	2,486,066		$	2,351,009
Less: goodwill		995,492			995,492			995,492			995,492
Tangible stockholders’ equity	$	1,652,542		$	1,554,820		$	1,490,574		$	1,355,517

Total assets	$	23,780,285		$	23,991,791		$	24,926,474		$	24,912,524
Less: goodwill		995,492			995,492			995,492			995,492
Tangible assets	$	22,784,793		$	22,996,299		$	23,930,982		$	23,917,032

Shares outstanding		127,886,167			127,879,012			127,618,761			127,609,934

Total stockholders’ equity to total assets		11.14	%		10.63	%		9.97	%		9.44	%
Tangible stockholders’ equity to tangible assets (non-GAAP)		7.25	%		6.76	%		6.23	%		5.67	%

Book value per share	$	20.71		$	19.94		$	19.48		$	18.42
Tangible book value per share (non-GAAP)	$	12.92		$	12.16		$	11.68		$	10.62

⁽¹⁾Annualized for the three and nine months ended September 30, 2024 and 2023 and three months ended June 30, 2024.

The MIL Network –

January 25, 2025

MIL-OSI Economics: Inaugural ESG Forum Wraps Up in Abidjan with Stakeholders Uniting around Vision for an Africa ESG Hub

Source: African Development Bank Group

(From left) Olumide Lala, Executive Director, Climate Transition Limited with Natenin Coulibaly, General Manager Corporate Services, MTN; Armande Laetitia Ohouo-Lath, Director of Sustainable Development, SIFCA; Rachael Antwi, Group Sustainability and Environmental Risk, ECOBANK and Azeez Alayande, ESG Manager, ENGIE Nigeria during a session on Challenges and Opportunities in ESG Reporting in Africa at the Africa ESG Forum

Two days of intensive discussions on building a sustainable finance ecosystem for Africa ended in Abidjan on Tuesday with stakeholders from government and the private sector expressing strong support for an Africa-focused Environmental, Social, and Governance (ESG) Data Hub.

The inaugural Africa ESG Forum, held at the Sofitel Hotel in Abidjan, Côte d’Ivoire, was organised by the African Development Bank, the Multilateral Cooperation Centre for Development Finance, and Making Finance Work for Africa. It featured discussions on ESG reporting challenges and investor expectations, and concluded with the inaugural meeting of the ESG working group.

Representatives of various participating institutions shared their ESG implementation experiences. Moubarak Moukaila of the West African Development Bank highlighted the Bank’s progress in sustainable project development. “We created, at the beginning of this year, a unit that supports project development. We have developed, within six months, three projects with GEM and two projects with Green Climate Fund.”

Ahlem Kefi, Impact & Sustainability Officer at AfricInvest, outlined the firm’s comprehensive approach to sustainability assessments. “We start looking at the ESG risks and the ESG data from the first screening phase,” she said. “We don’t call this ESG due diligence, we call it impact and sustainability due diligence.”

Mostafa Hawas of the Egyptian Stock Exchange offered practical insights into implementing ESG reporting requirements. He outlined how they began with “a very, very simple survey” distributed to listed companies, and emphasized the importance of gradual implementation to build awareness, before introducing more detailed requirements.

Kuhle Sojola, ESG Engagement Specialist at Sanlam Investments, addressed the critical issue of greenwashing – the misleading use of advertising and marketing to falsely portray an organization’s products, goals, or policies as being environmentally friendly – in corporate reporting. “We use engagement as a tool to mitigate or reduce the risk of greenwashing,” she said, adding that, when a company’s reported metrics differ significantly from those of their peer group, “that is usually an indication that there could be a level of greenwashing there.”

Participants at the Forum envisioned the proposed African ESG Hub as a unifying vehicle for sustainability issues in Africa, enhancing awareness among local entities and international investors. In preparation for its establishment, they acknowledged that with 80 percent of African companies being SMEs, engaging the sector would be critical in advancing ESG reporting and sustainable finance across the continent. In addition, they outlined plans for the proposed Hub, including ensuring that it provides a credible platform for training and technical assistance, and for sharing best practices and case studies.

MIL OSI Economics –

January 25, 2025

MIL-OSI: Dave to Report Third Quarter 2024 Results on November 12, 2024 at 5:00 p.m. ET

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Oct. 25, 2024 (GLOBE NEWSWIRE) — Dave Inc. (“Dave” or the “Company”) (Nasdaq: DAVE), one of the nation’s leading neobanks, will host a conference call on Tuesday, November 12, 2024, at 5:00 p.m. Eastern time to discuss its financial results for the third quarter ended September 30, 2024. The Company’s results will be reported in a press release prior to the call.

Dave management will host the conference call, followed by a question-and-answer period. The conference call details are as follows:

Date: Tuesday, November 12, 2024
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here

The conference call will also be available for replay in the Events section of the Company’s website, along with the transcript, at https://investors.dave.com.

If you have any difficulty registering for or connecting to the conference call, please contact Elevate IR at DAVE@elevate-ir.com.

About Dave

Dave (Nasdaq: DAVE) is a leading U.S. neobank and fintech pioneer serving millions of everyday Americans. Dave uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents. Dave partners with Evolve Bank & Trust, a FDIC member. For more information about the company, visit: www.dave.com. For investor information and updates, visit: investors.dave.com and follow @davebanking on X.

Investor Relations Contact

Sean Mansouri, CFA
Elevate IR
DAVE@elevate-ir.com

Media Contact

Dan Ury
press@dave.com

The MIL Network –

January 25, 2025

MIL-OSI: Pacific Financial Corp Earns $2.6 Million, or $0.25 per Diluted Share for Third Quarter 2024; Tangible Book Value Per Share Up 6.6% During Quarter; Board of Directors Declares Quarterly Cash Dividend of $0.14 per Share

Source: GlobeNewswire (MIL-OSI)

ABERDEEN, Wash., Oct. 25, 2024 (GLOBE NEWSWIRE) — Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.6 million, or $0.25 per diluted share for the third quarter of 2024, compared to $2.1 million, or $0.21 per diluted share for the second quarter of 2024, and $3.6 million, or $0.35 per diluted share for the third quarter of 2023. All results are unaudited.

Pacific Financials’ third quarter 2024 operating results reflected the following changes from the second quarter of 2024: (1) higher net interest income as the rise in loan and investment yields outpaced the rise in deposit and borrowing costs; (2) a negative provision for credit losses due to lower provision for unfunded loans; (3) lower non-interest income due to smaller gains on the sale of loans and investment securities; (4) slightly lower non-interest expenses; (5) a small decrease in total gross loans of 0.6% offset by an increase in the purchase of investment securities with the balance of investment securities increasing $18.1 million, or 6.5% during the third quarter; (6) an increase in total deposits of 2.6% to $1.0 billion at September 30, 2024, and (7) a $6.2 million increase in shareholder equity, or 5.4%. Tangible book value per share increased 6.6% during the quarter to $10.47.

The board of directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on October 23, 2024. The dividend will be payable on November 22, 2024 to shareholders of record on November 8, 2024. Additionally, the Board of Directors has authorized an additional $2.6 million toward future repurchases, or approximately 2.0% of total shares outstanding. The current stock repurchase program expires in November 2024.

“Our core operations continue to remain strong,” said Denise Portmann, President and Chief Executive Officer. “Our focused efforts on deposit retention, combined with the efforts of our new commercial loan and deposit teams, resulted in increased business relationships during the third quarter. Additionally, we added to our investment securities portfolio to increase yields. During the fourth quarter, we will be closing our mortgage banking division which we anticipate will improve the efficiency of our operation and improve earnings. However, the fourth quarter will reflect some one-time charges related to severance, contract and lease terminations.”

Third Quarter 2024 Financial Highlights:

Return on average assets (“ROAA”) was 0.90%, compared to 0.76% for the second quarter 2024, and 1.21% for the third quarter 2023.
Return on average equity (“ROAE”) was 8.77%, compared to 7.47% from the preceding quarter, and 13.16% from the third quarter a year earlier.
Net interest income was $11.2 million, compared to $10.8 million for the second quarter of 2024, and $12.3 million for the third quarter of 2023.
Net interest margin (“NIM”) increased to 4.19%, compared to 4.15% from the preceding quarter, and 4.37% for the third quarter a year ago. The increase in the net interest margin in the most recent quarter was due to increased yields on interest-earning assets outpacing the increased cost of interest-bearing liabilities.
Provision for credit losses was a benefit of $66,000 for the third quarter ended September 30, 2024 compared to a provision of $304,000 for the preceding quarter and $244,000 in the third quarter a year ago. The benefit largely reflected lower provisions for unfunded loans relative to prior periods.
Gross loans balances held in portfolio decreased by $4.4 million, or less than 1% to $699.6 million at September 30, 2024, compared to $704.0 million at June 30, 2024, and increased by $27.6 million, or 4%, from $672.0 million at September 30, 2023.
Total deposits increased $25.8 million to $1.01 billion, compared to $985.6 million at June 30, 2024, and decreased from $1.05 billion at September 30, 2023. Core deposits represented 87% of total deposits, with non-interest bearing deposits representing 38% of total deposits at September 30, 2024.
Coverage of short-term funds available to uninsured and uncollateralized deposits was 229% at September 30, 2024 and June 30, 2024. Uninsured or uncollateralized deposits were 25% of total deposits at September 30, 2024, and 24% at June 30, 2024.
Asset quality remains solid with nonperforming assets to total assets at 0.10%, compared to 0.12% three months earlier, and 0.10% at September 30, 2023. Accruing loans past due 30 or more days represent only 0.03% of total loans at September 30, 2024.
Tangible book value per share increased 6.6% during the quarter to $10.47 per share at September 30, 2024 from $9.82 per share at June 30, 2024. The increase was largely the result of a decline in interest rates and its impact on the fair market value of securities.
Pacific Financial and Bank of the Pacific continued to exceed regulatory well-capitalized requirements. At September 30, 2024 Pacific Financial’s estimated leverage ratio was 11.6% and its estimated total risk-based capital ratio was 17.9%.

Balance Sheet Review

Total assets increased 3% to $1.16 billion at September 30, 2024, compared to $1.12 billion at June 30, and decreased 2% from $1.18 billion at September 30, 2023.

Liquidity metrics continued to remain strong with total liquidity, both on and off balance sheet sources, at $576.8 million as of September 30, 2024. The Bank has established collateralized credit lines with borrowing capacity from the Federal Home Loan Bank of Des Moines (FHLB) and from the Federal Reserve Bank of San Francisco, as well as $60.0 million in unsecured borrowing lines from various correspondent banks. There was no balance outstanding on any of these facilities at quarter-end.

The following table summarizes the Bank’s available liquidity:

LIQUIDITY (unaudited)	Period Ended						Change from									% of Deposits
($ in 000s)	Period Ended						Change from									% of Deposits

		Sep 30,		Jun 30,		Sep 30,		Jun 30, 2024				Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024		2024		2023		$	%			$		%		2024		2024		2023
Short-term Funding
Cash and cash equivalents	$	85,430	$	63,183	$	147,970	$	22,247	35	%	$	(62,540	)	-42	%	8	%	6	%	14	%
Unencumbered AFS Securities		154,565		139,581		123,842		14,984	11	%		30,723		25	%	15	%	14	%	12	%
Secured lines of Credit (FHLB, FRB)		336,771		332,674		318,557		4,097	1	%		18,214		6	%	33	%	34	%	30	%
Short-term Funding	$	576,766	$	535,438	$	590,369	$	41,328	8	%	$	(13,603	)	-2	%	56	%	54	%	56	%

Investment securities: The investment securities portfolio increased 6% to $296.8 million, compared to $278.7 million at June 30, 2024 and increased 3% compared to the like period a year ago. The increase from the prior quarter was primarily due to the purchase of collateralized mortgage obligations and mortgage backed securities. U.S. Treasury bonds, and securities issued by the U.S. Government sponsored agencies accounted for 85% of the investment portfolio as of September 30, 2024, June 30, 2024, and September 30, 2023. Within that total, collateralized mortgage obligations accounted for 48% of the investment portfolio at September 30, 2024, compared to 45% the previous quarter.

The average adjusted duration to reset of the investment securities portfolio was 4.2 years at September 30, 2024. Net unrealized losses on the investments classified as available for sale declined $7.2 million to $14.8 million ($11.5 million after-tax) at September 30, 2024, or 5% of AFS portfolio.

Gross loans balances excluding loans held for sale decreased $4.4 million, or 1%, to $699.6 million at September 30, 2024, compared to $704.0 million at June 30, 2024. During the third quarter, loan pipelines and originations slowed from prior levels as borrowers continued to adjust to higher interest rates and economic uncertainty. Due primarily to loan amortization the loan portfolio reflected slight declines in most categories except multi-family lending which increased $2.8 million. Year-over-year loan growth was 4%, or $27.6 million, with the largest increases in residential 1-4 family and multi-family loans which increased $14.8 million and $11.7 million, respectively. Loans classified as commercial real estate for regulatory concentration purposes totaled $261.3 million at September 30, 2024, or 185% of total risk based capital.

The Company continues to manage concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets.

Credit quality: Non-performing assets were minimal and remained at $1.1 million, or 0.10% of total assets at September 30, 2024, compared to $1.2 million, or 0.10% at September 30, 2023. The Company has zero other real estate owned as of September 30, 2024 and accruing loans past due more than 30 days represent only 0.04% of total loans.

Allowance for credit losses (“ACL”) for loans was $8.9 million, or 1.27% of gross loans at September 30, 2024, compared to $8.9 million or 1.26% of loans at June 30, 2024 and $8.3 million or 1.24% at September 30, 2023.

A negative provision for credit losses of $66,000 was recorded in the current quarter, reflecting less allowance requirements for unfunded loans. This compares to a provision for credit losses of $304,000 in the second quarter of 2024 and $244,000 for the third quarter of 2023. Net charge-offs for the current quarter remained minimal and reflected a net recovery of $11,000, compared to a net charge-off of $56,000 for the preceding quarter and $125,000 for the third quarter one year ago.

Total deposits increased to $1.01 billion at September 30, 2024, compared to $985.6 million at June 30, 2024 and decreased from $1.05 billion at September 30, 2023. The bank has focused efforts to retain customer relationships resulting in a $22.1 million increase in business deposits.

Non-interest-bearing account balances, composed of commercial banking relationships, are the largest component of the deposit portfolio at 38% at September 30, 2024 and June 30, 2024. Money market deposits currently represent the second largest component of the deposit base and increased $11.5 million from the linked quarter and $12.8 million from the same quarter a year ago and represent 19%, 18%, and 17%, of total deposits, at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Interest-bearing demand deposits are the third largest component of the deposit base representing 18% of total deposits at September 30, 2024. Pacific Financial continues to benefit from a strong core deposit base, with core deposits representing 87% of total deposits at quarter end.

Shareholder’s equity increased $6.2 million, or 5% to $121.1 million at September 30, 2024, compared to $114.9 million at June 30, 2024, and increased $14.5 million, or 14% compared to $106.6 million at September 30, 2023. The increase in shareholders’ equity during the current quarter was due to quarterly net income, a decrease in unrealized losses on available-for-sale securities and dividends paid to shareholders. Net unrealized losses (after-tax) on available-for-sale securities were $11.5 million at September 30, 2024 compared to $17.1 million at June 30, 2024, and $23.1 million at September 30, 2023. This decrease in net unrealized losses reflects lower longer-term market interest rates at the end of the quarter.

Book value per common share was $11.78 at September 30, 2024, compared to $11.12 at June 20, 2024, and $10.22 at September 30, 2023. The Company’s tangible common equity ratio was 9.4% at September 30, 2024 and 9.1% at June 30, 2024, compared to 8.0% at September 30, 2023. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the Company’s leverage ratio at 11.6% and total risk-based capital ratio at 17.9% as of September 30, 2024. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.

The current stock repurchase program expires in November 2024. The Board of Directors has authorized an additional $2.6 million toward future repurchases, or approximately 2.0% of total shares outstanding.

Income Statement Review

Net interest income increased $438,000 to $11.2 million for the third quarter of 2024, compared to $10.8 million for the second quarter of 2024, and decreased $1.1 million compared to $12.3 million for the third quarter a year ago. The change in the current quarter compared to the preceding quarter reflects higher yields on a larger investment portfolio and an increase in loan yields due primarily to repricing of loans. Increasing deposit costs offset some of the benefit from higher yielding investments and loans. For the current quarter compared to the like period a year ago, funding costs have outpaced the rising yields on investments and loans.

The Bank’s net interest margin continued to remain strong at 4.19% for the quarter ended September 30, 2024 compared to 4.15% the preceding quarter. For the third quarter ended September 30, 2023, the net interest margin was 4.37% reflecting lower funding costs relative to more recent periods.

Yields on total interest earning assets increased 14 basis points to 5.29% for the third quarter of 2024 compared to 5.15% for the prior quarter and 5.06% in the like quarter a year ago. Average loan yields increased to 5.99% during the current quarter, compared to 5.80% for the preceding quarter and 5.71% for the third quarter 2023.

The Bank’s total cost of funds increased to 1.15% for the current quarter, compared to 1.05% for the preceding quarter, and 0.72% for the third quarter 2023. The increase in the costs of deposits was due to retention efforts and competitive pricing of deposit products. The percentage of non-interest bearing deposits remained high at 38% for the current quarter.

Noninterest income decreased to $1.7 million for the current quarter, compared to $2.0 million for the linked quarter and increased from $1.6 million a year earlier. The decrease compared to the linked quarter was primarily due to decreased mortgage banking loan production and no gains on the sale of investment securities.

The company plans to close its mortgage banking division by the end of 2024 which is expected to reduce non-interest income offset by a reduction of personnel and overhead expenses associated with the operation. The elimination of the mortgage banking division is expected to improve the efficiency of the company after severance and contract termination expenses are realized in the fourth quarter of 2024.

Fee and service charge income remained consistent in the third quarter of 2024 at $1.2 million compared to the previous quarter and the third quarter of 2023.

Noninterest expenses decreased to $9.7 million for the third quarter of 2024 compared to $9.8 million for the prior quarter and increased from $9.1 million for the third quarter of 2023. Within the total of noninterest expenses for the current quarter compared to the prior quarter, the largest category of salaries and employee benefits remained at $6.3 million. Similarly, data processing and occupancy expenses remained consistent to the prior quarter.

The company’s efficiency ratio decreased to 75.48% for the third quarter of 2024, compared to 77.34% in the preceding quarter and increased from 65.78% in the same quarter a year ago. The increase in the efficiency ratio relative to the previous year primarily relates to the decreased net interest margin and higher overhead expenses related to the hiring, building and marketing of new commercial loan and deposit teams.

Income tax expense: Federal and Oregon state income tax expenses totaled $633,000 for the current quarter, and $454,000 for the preceding quarter, resulting in effective tax rates of 19.6% and 17.6%, respectively. These income tax expenses reflect the benefits of tax exempt income and credits on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank owned life insurance.

FINANCIAL HIGHLIGHTS (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
FINANCIAL HIGHLIGHTS (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
(In 000s, except per share data)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%
Earnings Ratios & Data
Net Income	$	2,594		$	2,126		$	3,645		$	468		22	%	$	(1,051	)	-29	%	$	7,370		$	11,663		$	(4,293	)	-37	%
Return on average assets		0.90	%		0.76	%		1.21	%		0.14	%				-0.31	%				0.87	%		1.28	%		-0.41	%
Return on average equity		8.77	%		7.47	%		13.16	%		1.30	%				-4.39	%				8.52	%		14.34	%		-5.82	%
Efficiency ratio ⁽¹⁾		75.48	%		77.34	%		65.78	%		-1.86	%				9.70	%				75.67	%		64.64	%		11.03	%
Net-interest margin %⁽²⁾		4.19	%		4.15	%		4.37	%		0.04	%				-0.18	%				4.24	%		4.40	%		-0.16	%

Share Ratios & Data
Basic earnings per share	$	0.25		$	0.21		$	0.35		$	0.04		19	%	$	(0.10	)	-29	%	$	0.71		$	1.12		$	(0.41	)
Diluted earning per share	$	0.25		$	0.21		$	0.35		$	0.04		19	%	$	(0.10	)	-29	%	$	0.71		$	1.12		$	(0.41	)
Book value per share⁽³⁾	$	11.78		$	11.12		$	10.22		$	0.66		6	%	$	1.56		15	%
Tangible book value per share⁽⁴⁾	$	10.47		$	9.82		$	8.93		$	0.65		7	%	$	1.54		17	%
Common shares outstanding		10,283			10,336			10,427			(53	)	-1	%		(144	)	-1	%
PFLC stock price	$	11.65		$	9.76		$	10.00		$	1.89		19	%	$	1.65		17	%
Dividends paid per share	$	0.14		$	0.14		$	0.13		$	–		0	%	$	0.01		8	%	$	0.42		$	0.39		$	0.03		8	%

Balance Sheet Data
Assets	$	1,158,410		$	1,124,295		$	1,181,975		$	34,115		3	%	$	(23,565	)	-2	%
Portfolio Loans	$	699,603		$	703,977		$	671,969		$	(4,374	)	-1	%	$	27,634		4	%
Deposits	$	1,011,473		$	985,627		$	1,051,256		$	25,846		3	%	$	(39,783	)	-4	%
Investments	$	296,792		$	278,728		$	289,152		$	18,064		6	%	$	7,640		3	%
Shareholders equity	$	121,087		$	114,923		$	106,601		$	6,164		5	%	$	14,486		14	%

Liquidity Ratios
Short-term funding to uninsured
and uncollateralized deposits		229	%		229	%		254	%		0	%				-25	%
Uninsured and uncollateralized
deposits to total deposits		25	%		24	%		22	%		1	%				3	%
Portfolio loans to deposits ratio		69	%		71	%		63	%		-2	%				6	%

Asset Quality Ratios
Non-performing assets to assets		0.10	%		0.12	%		0.10	%		-0.02	%				0.00	%
Non-accrual loans to portfolio loans		0.16	%		0.19	%		0.18	%		-0.03	%				-0.02	%
Loan losses to avg portfolio loans		-0.01	%		0.03	%		0.07	%		-0.04	%				-0.08	%				0.01	%		0.04	%		-0.03	%
ACL to portfolio loans		1.27	%		1.26	%		1.24	%		0.01	%				0.03	%

Capital Ratios (PFC)
Total risk-based capital ratio		17.9	%		17.6	%		17.6	%		0.3	%				0.3	%
Tier 1 risk-based capital ratio		16.7	%		16.4	%		16.5	%		0.3	%				0.2	%
Common equity tier 1 ratio		15.0	%		14.8	%		14.8	%		0.2	%				0.2	%
Leverage ratio		11.6	%		11.7	%		10.7	%		-0.1	%				0.9	%
Tangible common equity ratio		9.4	%		9.1	%		8.0	%		0.3	%				1.4	%

⁽¹⁾ Non-interest expense divided by net interest income plus noninterest income.
⁽²⁾ Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
⁽³⁾ Book value per share is calculated as the total common shareholders’ equity divided by the period ending number of common stock shares outstanding.
⁽⁴⁾ Tangible book value per share is calculated as the total common shareholders’ equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding.

INCOME STATEMENT (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
INCOME STATEMENT (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%
Interest Income
Loan interest & fee income	$	10,520		$	10,109		$	9,549		$	411		4	%	$	971		10	%	$	30,853		$	27,166		$	3,687		14	%
Interest bearing cash income		1,108			847			2,322			261		31	%		(1,214	)	-52	%		2,890			7,669			(4,779	)	-62	%
Investment income		2,503			2,410			2,371			93		4	%		132		6	%		7,388			6,832			556		8	%
Interest Income		14,131			13,366			14,242			765		6	%		(111	)	-1	%		41,131			41,667			(536	)	-1	%

Interest Expense
Deposits interest expense		2,684			2,358			1,716			326		14	%		968		56	%		7,033			3,437			3,596		105	%
Other borrowings interest expense		243			242			246			1		0	%		(3	)	-1	%		727			682			45		7	%
Interest Expense		2,927			2,600			1,962			327		13	%		965		49	%		7,760			4,119			3,641		88	%
Net Interest Income		11,204			10,766			12,280			438		4	%		(1,076	)	-9	%		33,371			37,548			(4,177	)	-11	%
Provision (benefit) for credit losses		(66	)		304			244			(370	)	-122	%		(310	)	-127	%		271			409			(138	)	-34	%
Net Interest Income after provision		11,270			10,462			12,036			808		8	%		(766	)	-6	%		33,100			37,139			(4,039	)	-11	%

Non-Interest Income
Fees and service charges		1,225			1,198			1,248			27		2	%		(23	)	-2	%		3,523			3,695			(172	)	-5	%
Gain on sale of investments, net		–			121			–			(121	)	-100	%		–		-100	%		121			(154	)		275		-179	%
Gain on sale of loans, net		267			445			170			(178	)	-40	%		97		57	%		865			540			325		60	%
Income on bank-owned insurance		188			182			174			6		3	%		14		8	%		550			509			41		8	%
Other non-interest income		7			17			18			(10	)	-59	%		(11	)	-61	%		34			53			(19	)	-36	%
Non-Interest Income		1,687			1,963			1,610			(276	)	-14	%		77		5	%		5,093			4,643			450		10	%

Non-Interest Expense
Salaries and employee benefits		6,341			6,321			5,560			20		0	%		781		14	%		18,656			17,006			1,650		10	%
Occupancy		601			564			501			37		7	%		100		20	%		1,806			1,536			270		18	%
Furniture, Fixtures & Equipment		286			267			252			19		7	%		34		13	%		837			808			29		4	%
Marketing & donations		201			176			160			25		14	%		41		26	%		531			380			151		40	%
Professional services		233			327			301			(94	)	-29	%		(68	)	-23	%		897			941			(44	)	-5	%
Data Processing & IT		1,185			1,165			1,161			20		2	%		24		2	%		3,541			3,490			51		1	%
Other		883			1,025			1,207			(142	)	-14	%		(324	)	-27	%		2,839			3,174			(335	)	-11	%
Non-Interest Expense		9,730			9,845			9,142			(115	)	-1	%		588		6	%		29,107			27,335			1,772		6	%
Income before income taxes		3,227			2,580			4,504			647		25	%		(1,277	)	-28	%		9,086			14,447			(5,361	)	-37	%
Provision for income taxes		633			454			859			179		39	%		(226	)	-26	%		1,716			2,784			(1,068	)	-38	%
Net Income	$	2,594		$	2,126		$	3,645		$	468		22	%		(1,051	)	-29	%	$	7,370		$	11,663		$	(4,293	)	-37	%

Effective tax rate		19.6	%		17.6	%		19.1	%		2.0	%				0.5	%				18.9	%		19.3	%		-0.4	%

BALANCE SHEET (unaudited)	Period Ended									Change from										% of Total
($ in 000s)	Period Ended									Change from										% of Total

		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024			2024			2023			$		%			$		%		2024		2024		2023
Assets
Cash on hand and in banks	$	20,621		$	17,362		$	12,052		$	3,259		19	%	$	8,569		71	%	2	%	2	%	2	%
Interest bearing deposits		80,522			58,586			146,886			21,936		37	%		(66,364	)	-45	%	7	%	5	%	12	%
Investment securities		296,792			278,728			289,152			18,064		6	%		7,640		3	%	26	%	25	%	24	%
Loans held-for-sale		140			4,051			637			(3,911	)	-97	%		(497	)	-78	%	0	%	0	%	0	%
Portfolio Loans, net of deferred fees		698,974			703,322			671,134			(4,348	)	-1	%		27,840		4	%	60	%	63	%	57	%
Allowance for credit losses		(8,897	)		(8,859	)		(8,347	)		(38	)	0	%		(550	)	7	%	-1	%	-1	%	-1	%
Net loans		690,077			694,463			662,787			(4,386	)	-1	%		27,290		4	%	60	%	62	%	56	%
Premises & equipment		17,124			15,571			13,756			1,553		10	%		3,368		24	%	2	%	2	%	2	%
Goodwill & Other Intangibles		13,435			13,435			13,435			–		0	%		–		0	%	1	%	1	%	1	%
Bank-owned life Insurance		28,084			27,860			27,321			224		1	%		763		3	%	2	%	2	%	2	%
Other assets		11,615			14,239			15,949			(2,624	)	-18	%		(4,334	)	-27	%	1	%	1	%	1	%
Total Assets	$	1,158,410		$	1,124,295		$	1,181,975		$	34,115		3	%	$	(23,565	)	-2	%	100	%	100	%	100	%

Liabilities & Shareholders’ Equity
Deposits	$	1,011,473		$	985,627		$	1,051,256		$	25,846		3	%	$	(39,783	)	-4	%	87	%	88	%	89	%
Borrowings		13,403		$	13,403		$	13,403			–		0	%		–		0	%	1	%	1	%	1	%
Other liabilities		12,447		$	10,342		$	10,715			2,105		20	%		1,732		16	%	1	%	1	%	1	%
Shareholders’ equity		121,087		$	114,923		$	106,601			6,164		5	%		14,486		14	%	11	%	10	%	9	%
Liabilities & Shareholders’ Equity	$	1,158,410		$	1,124,295		$	1,181,975		$	34,115		3	%	$	(23,565	)	-2	%	100	%	100	%	100	%

INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024			2024			2023			$		%			$		%		2024		2024		2023
Investment Securities
Collateralized mortgage obligations	$	141,842		$	125,937		$	126,376		$	15,905		13	%	$	15,466		12	%	48	%	45	%	45	%
Mortgage backed securities		41,264			37,159			38,322			4,105		11	%		2,942		8	%	14	%	13	%	13	%
U.S. Government and agency securities		68,961			72,504			82,292			(3,543	)	-5	%		(13,331	)	-16	%	23	%	27	%	27	%
Municipal securities		44,725			43,128			42,162			1,597		4	%		2,563		6	%	15	%	15	%	15	%
Investment Securities	$	296,792		$	278,728		$	289,152		$	18,064		6	%	$	7,640		3	%	100	%	100	%	100	%

Held to maturity securities	$	42,301		$	43,244		$	56,469		$	(943	)	-2	%	$	(14,168	)	-25	%	14	%	16	%	20	%
Available for sale securities	$	254,491		$	235,484		$	232,683		$	19,007		8	%	$	21,808		9	%	86	%	84	%	80	%

Government & Agency securities	$	252,039		$	235,570		$	246,956		$	16,469		7	%	$	5,083		2	%	85	%	85	%	85	%
AAA, AA, A rated securities	$	44,084		$	42,471		$	41,025		$	1,613		4	%	$	3,059		7	%	15	%	15	%	14	%
Non-rated securities	$	669		$	687		$	1,171		$	(18	)	-3	%	$	(502	)	-43	%	0	%	0	%	0	%

AFS Unrealized Gain (Loss)	$	(14,804	)	$	(21,978	)	$	(29,783	)	$	7,174		-33	%	$	14,979		-50	%	-5	%	-8	%	-10	%

PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024			2024			2023			$		%			$		%		2024		2024		2023
Portfolio Loans
Commercial & agriculture	$	73,002		$	74,952		$	73,232		$	(1,950	)	-3	%	$	(230	)	0	%	10	%	11	%	11	%
Real estate:
Construction and development		46,569			47,856			42,584			(1,287	)	-3	%		3,985		9	%	7	%	7	%	6	%
Residential 1-4 family		105,298			105,807			90,449			(509	)	0	%		14,849		16	%	15	%	14	%	14	%
Multi-family		60,773			58,003			49,092			2,770		5	%		11,681		24	%	9	%	8	%	7	%
CRE — owner occupied		167,086			169,491			164,057			(2,405	)	-1	%		3,029		2	%	24	%	24	%	25	%
CRE — non owner occupied		157,347			157,591			154,993			(244	)	0	%		2,354		2	%	22	%	22	%	23	%
Farmland		26,553			27,195			27,641			(642	)	-2	%		(1,088	)	-4	%	4	%	4	%	4	%
Consumer		62,975			63,082			69,921			(107	)	0	%		(6,946	)	-10	%	9	%	10	%	10	%
Portfolio Loans		699,603			703,977			671,969			(4,374	)	-1	%		27,634		4	%	100	%	100	%	100	%
Less: ACL		(8,897	)		(8,859	)		(8,347	)
Less: deferred fees		(629	)		(655	)		(835	)
Net loans	$	690,077		$	694,463		$	662,787

Regulatory Commercial Real Estate	$	261,292		$	260,068		$	244,277		$	1,224		0	%	$	17,015		7	%	37	%	37	%	36	%
Total Risk Based Capital⁽¹⁾	$	140,971		$	140,176		$	137,473		$	795		1	%	$	3,498		3	%
CRE to Risk Based Capital⁽¹⁾		185	%		186	%		178	%				-1	%				7	%

CRE–MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited)	Period Ended						Change from										% of Total
	Period Ended						Change from										% of Total
($ in 000s)
		Sep 30,		Jun 30,		Sep 30,		Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024		2024		2023		$		%			$		%		2024		2024		2023
Collateral Composition⁽²⁾
Multifamily	$	63,099	$	63,243	$	54,677	$	(144	)	0	%	$	8,422		15	%	27	%	27	%	26	%
Retail		37,685		36,074		28,657		1,611		4	%		9,028		32	%	16	%	16	%	13	%
Hospitality		30,844		30,248		32,190		596		2	%		(1,346	)	-4	%	13	%	13	%	15	%
Mini Storage		25,758		23,619		20,977		2,139		9	%		4,781		23	%	11	%	11	%	10	%
Office		22,921		23,266		27,075		(345	)	-1	%		(4,154	)	-15	%	10	%	10	%	13	%
Mixed Use		22,708		23,520		22,457		(812	)	-3	%		251		1	%	10	%	10	%	11	%
Industrial		13,912		13,691		10,898		221		2	%		3,014		28	%	6	%	6	%	5	%
Warehouse		7,582		7,631		6,204		(49	)	-1	%		1,378		22	%	3	%	3	%	3	%
Special Purpose		6,968		7,014		7,146		(46	)	-1	%		(178	)	-2	%	3	%	3	%	3	%
Other		3,174		3,213		3,380		(39	)	-1	%		(206	)	-6	%	1	%	1	%	1	%
Total	$	234,651	$	231,519	$	213,661	$	3,132		1	%	$	20,990		10	%	100	%	100	%	100	%

⁽¹⁾ Bank of the Pacific
⁽²⁾ Includes loans in process of construction

CREDIT QUALITY (unaudited)	Period Ended									Change from
CREDIT QUALITY (unaudited)	Period Ended									Change from
($ in 000s)		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Jun 30, 2024
		2024			2024			2023			$		%			$		%
Risk Rating Distribution
Pass	$	691,199		$	694,272		$	664,327		$	(3,073	)	0	%		26,872		4	%
Special Mention		4,789			4,731			1,626			58		1	%		3,163		195	%
Substandard		3,615			4,974			6,016			(1,359	)	-27	%		(2,401	)	-40	%
Portfolio Loans	$	699,603		$	703,977		$	671,969		$	(4,374	)	-1	%	$	27,634		4	%

Nonperforming Assets
Nonaccruing loans		1,138			1,370			1,219		$	(232	)	-17	%		(81	)	-7	%
Other real estate owned		–			–			–			–		0	%		–		0	%
Nonperforming Assets	$	1,138		$	1,370		$	1,219		$	(232	)	-17	%		(81	)	-7	%

Credit Metrics
Classified loans¹ to portfolio loans		0.52	%		0.71	%		0.90	%		-0.19	%				-0.38	%
ACL to classified loans¹		246.11	%		178.11	%		132.68	%		68.00	%				113.43	%
Loans past due 30+ days to portfolio loans²		0.03	%		0.04	%		0.25	%		-0.01	%				-0.22	%
Nonperforming assets to total assets		0.10	%		0.12	%		0.10	%		-0.02	%				0.00	%
Nonaccruing loans to portfolio loans		0.16	%		0.19	%		0.18	%		-0.03	%				-0.02	%

⁽¹⁾ Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower’s financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.
⁽²⁾ Excludes non-accrual loans

DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended						Change from										% of Total
DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended						Change from										% of Total
($ in 000s)
		Sep 30,		Jun 30,		Sep 30,		Jun 30, 2024					Sep 30, 2023				Sep 30,		Jun 30,		Sep 30,
		2024		2024		2023		$		%			$		%		2024		2024		2023
Deposits
Interest-bearing demand	$	183,337	$	179,278	$	208,091	$	4,059		2	%	$	(24,754	)	-12	%	18	%	19	%	20	%
Money market		192,185		180,727		179,367		11,458		6	%		12,818		7	%	19	%	18	%	17	%
Savings		117,131		121,851		138,981		(4,720	)	-4	%		(21,850	)	-16	%	12	%	12	%	13	%
Time deposits (CDs)		133,995		125,560		92,720		8,435		7	%		41,275		45	%	13	%	13	%	9	%
Total interest-bearing deposits		626,648		607,416		619,159		19,232		3	%		7,489		1	%	62	%	62	%	59	%
Non-interest bearing demand		384,825		378,211		432,097		6,614		2	%		(47,272	)	-11	%	38	%	38	%	41	%
Total deposits	$	1,011,473	$	985,627	$	1,051,256	$	25,846		3	%	$	(39,783	)	-4	%	100	%	100	%	100	%

Insured Deposits	$	636,725	$	632,923	$	666,308	$	3,802		1	%	$	(414,008	)	-62	%	63	%	64	%	63	%
Collateralized Deposits		122,448		118,966		152,960		3,482		3	%		(30,512	)	-20	%	12	%	12	%	15	%
Uninsured Deposits		252,300		233,738		231,988		18,562		8	%		404,737		174	%	25	%	24	%	22	%
Total Deposits	$	1,011,473	$	985,627	$	1,051,256	$	25,846		3	%	$	(39,783	)	-4	%	100	%	100	%	100	%

Consumer Deposits	$	458,097	$	458,249	$	466,877	$	(152	)	0	%	$	(8,780	)	-2	%	45	%	47	%	44	%
Business Deposits		420,845		398,719		429,443		22,126		6	%		(8,598	)	-2	%	42	%	40	%	41	%
Public Deposits		132,531		128,659		154,936		3,872		3	%		(22,405	)	-14	%	13	%	13	%	15	%
Total Deposits	$	1,011,473	$	985,627	$	1,051,256	$	25,846		3	%	$	(39,783	)	-4	%	100	%	100	%	100	%

NET INTEREST MARGIN (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
NET INTEREST MARGIN (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%

Average Interest Bearing Balances
Portfolio loans	$	697,904		$	699,404		$	665,300		$	(1,500	)	0	%	$	32,604		5	%	$	695,418		$	653,619		$	41,799		6	%
Loans held for sale	$	1,276		$	1,593		$	497		$	(317	)	-20	%	$	779		157	%	$	1,155		$	601		$	554		92	%
Investment securities	$	285,947		$	283,637		$	284,041		$	2,310		1	%	$	1,906		1	%	$	287,315		$	285,538		$	1,777		1	%
Interest-bearing cash	$	81,755		$	62,494		$	172,119		$	19,261		31	%	$	(90,364	)	-53	%	$	71,080		$	206,259		$	(135,179	)	-66	%
Total interest-earning assets	$	1,066,882		$	1,047,128		$	1,121,957		$	19,754		2	%	$	(55,075	)	-5	%	$	1,054,968		$	1,146,017		$	(91,049	)	-8	%
Non-interest bearing deposits	$	383,332		$	387,740		$	441,782		$	(4,408	)	-1	%	$	(58,450	)	-13	%	$	388,672		$	457,750		$	(69,078	)	-15	%
Interest-bearing deposits	$	615,388		$	596,121		$	619,183		$	19,267		3	%	$	(3,795	)	-1	%	$	600,694		$	628,978		$	(28,284	)	-4	%
Total Deposits	$	998,720		$	983,861		$	1,060,965		$	14,859		2	%	$	(62,245	)	-6	%	$	989,366		$	1,086,728		$	(97,362	)	-9	%
Borrowings	$	13,403		$	13,404		$	13,403		$	(1	)	0	%	$	–		0	%	$	13,403		$	13,401		$	2		0	%
Total interest-bearing liabilities	$	628,791		$	609,525		$	632,586		$	19,266		3	%	$	(3,795	)	-1	%	$	614,097		$	642,379		$	(28,282	)	-4	%

Yield / Cost $⁽¹⁾
Portfolio loans	$	10,509		$	10,092		$	9,570		$	417		4	%	$	939		10	%	$	30,834		$	27,208		$	3,626		13	%
Loans held for sale	$	22		$	28		$	8		$	(6	)	-21	%	$	14		175	%	$	55		$	28		$	27		96	%
Investment securities	$	2,535		$	2,442		$	2,405		$	93		4	%	$	130		5	%	$	7,485		$	6,954		$	531		8	%
Interest-bearing cash	$	1,108		$	847		$	2,322		$	261		31	%	$	(1,214	)	-52	%	$	2,890		$	7,669		$	(4,779	)	-62	%
Total interest-earning assets	$	14,174		$	13,410		$	14,306		$	764		6	%	$	(132	)	-1	%	$	41,265		$	41,859		$	(594	)	-1	%
Interest-bearing deposits	$	2,684		$	2,358		$	1,716		$	326		14	%	$	968		56	%	$	7,033		$	3,437		$	3,596		105	%
Borrowings	$	243		$	242		$	246		$	1		0	%	$	(3	)	-1	%	$	727		$	682		$	45		7	%
Total interest-bearing liabilities	$	2,927		$	2,600		$	1,962		$	327		13	%	$	965		49	%	$	7,760		$	4,119		$	3,641		88	%
Net interest income	$	11,247		$	10,810		$	12,344		$	437		4	%		(1,097	)	-9	%	$	33,505		$	37,740		$	(4,235	)	-11	%

Yield / Cost %⁽¹⁾
Yield on portfolio loans		5.99	%		5.80	%		5.71	%		0.19	%				0.28	%				5.92	%		5.57	%		0.35	%
Yield on investment securities		3.53	%		3.46	%		3.36	%		0.07	%				0.17	%				3.48	%		3.26	%		0.22	%
Yield on interest-bearing cash		5.39	%		5.46	%		5.35	%		-0.07	%				0.04	%				5.43	%		4.97	%		0.46	%
Cost of interest-bearing deposits		1.74	%		1.59	%		1.10	%		0.15	%				0.64	%				1.56	%		0.73	%		0.83	%
Cost of borrowings		7.21	%		7.26	%		7.28	%		-0.05	%				-0.07	%				7.25	%		6.80	%		0.45	%
Cost of deposits and borrowings		1.15	%		1.05	%		0.72	%		0.10	%				0.43	%				1.03	%		0.50	%		0.53	%

Yield on interest-earning assets		5.29	%		5.15	%		5.06	%		0.14	%				0.23	%				5.22	%		4.88	%		0.34	%
Cost of interest-bearing liabilities		1.85	%		1.72	%		1.23	%		0.13	%				0.62	%				1.69	%		0.86	%		0.83	%
Net interest spread		3.44	%		3.43	%		3.83	%		0.01	%				-0.39	%				3.53	%		4.02	%		-0.49	%
Net interest margin		4.19	%		4.15	%		4.37	%		0.04	%				-0.18	%				4.24	%		4.40	%		-0.16	%

⁽¹⁾ Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.

ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited)	Quarter Ended									Change From											Nine Months Ended					Change
($ in 000s)
		Sep 30,			Jun 30,			Sep 30,			Jun 30, 2024					Sep 30, 2023					Sep 30,			Sep 30,
		2024			2024			2023			$		%			$		%			2024			2023			$		%
Allowance for Credit Losses
Beginning of period balance	$	8,859		$	8,580		$	8,223		$	279		3	%	$	636		8	%	$	8,530		$	8,236		$	294		4	%
Impact of CECL Adoption (ASC 326)		–			–			–			–		-100	%		–		-100	%		–			(157	)		157		-100	%
Charge-offs		(5	)		(57	)		(126	)		52		-91	%		121		-96	%		(97	)		(259	)		162		-63	%
Recoveries		16			1			1			15		1500	%		15		1500	%		19			55			(36	)	-65	%
Net (charge-off) recovery		11			(56	)		(125	)		67		-120	%		136		-109	%		(78	)		(204	)		126		-62	%
Provision (benefit)		27			335			249			(308	)	-92	%		(222	)	-89	%		445			472			(27	)	-6	%
End of period balance	$	8,897		$	8,859		$	8,347		$	38		0	%	$	550		7	%	$	8,897		$	8,347		$	550		7	%

Net charge-off (recovery) to
average portfolio loans		-0.01	%		0.03	%		0.07	%		-0.04	%				-0.08	%				0.01	%		0.04	%		-0.03	%
ACL to portfolio loans		1.27	%		1.26	%		1.24	%		0.01	%				0.03	%				1.27	%		1.24	%		0.03	%

Allowance for unfunded loans
Beginning of period balance	$	617		$	648		$	754		$	(31	)	-5	%	$	(137	)	-18	%	$	698		$	203		$	495		244	%
Impact of CECL Adoption (ASC 326)		–			–			–			–		-100	%		–		-100	%		–			609			(609	)	-100	%
Provision (benefit)		(93	)		(31	)		(5	)		(62	)	200	%		(88	)	1760	%		(174	)		(63	)		(111	)	176	%
End of period balance	$	524		$	617		$	749		$	(93	)	-15	%	$	(225	)	-30	%	$	524		$	749		$	(225	)	-30	%

ABOUT PACIFIC FINANCIAL CORPORATION

Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At September 30, 2024, the Company had total assets of $1.16 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

Cautions Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

CONTACTS:
DENISE PORTMANN, PRESIDENT & CEO
CARLA TUCKER, EVP & CFO
360.533.8873

The MIL Network –

January 25, 2025

MIL-OSI Global: In her first budget, the chancellor faces a minefield of risks

Source: The Conversation – UK – By Steve Schifferes, Honorary Research Fellow, City Political Economy Research Centre, City St George’s, University of London

Ahead of the new government’s first budget on October 30, chancellor Rachel Reeves has revealed her determination to change borrowing rules that will allow her to boost investment spending.

The overriding goal of the government is to promote economic growth, after more than a decade of stagnation in living standards. In the long run, boosting growth will produce more money for the government to improve public services. But while Reeves has given a strong steer as to how she will fund the public investment needed to grow the economy in the long term, she will also have to find money for urgent improvements to struggling public services like the NHS, a key election pledge.

There are three ways that the government can raise the funds it needs to boost investment and improve key public services. It can raise taxes, increase borrowing, or make cuts to spending. Given the scale of the challenge faced by the chancellor, all three are likely.

The government had made a rod for its own back with two of its key election pledges: not to raise the main taxes (income tax, national insurance, and VAT) on “working people”, while sticking to a set of fiscal rules that set strict limits on government borrowing. These pledges were designed to appeal to voters hit by the cost of living, while demonstrating to financial markets that Labour would be cautious with public money. Government borrowing reached nearly £80 billion in last six months, the third highest sum on record.

With the so-called financial “black hole” now estimated at £40 billion, not the £22 billion announced in July, the Treasury will need major tax rises that go well beyond the modest proposals from the election campaign. Although Labour may make some limited increases in other taxes on wealth, such as capital gains tax, this alone will not close the revenue gap.

The most likely candidate to bridge the gap is an increase in employer national insurance (NI) contributions, for example by making employers pay NI on their pension contributions. This could raise more than £15 billion per year. Reeves and prime minister Keir Starmer argue that this would not breach their manifesto commitments – but it will be politically controversial. Observers, including the Office for Budget Responsibility (OBR) and the Institute for Fiscal Studies, argue that such taxes are eventually felt by workers through either lower wages or staff cuts.

Further spending cuts are also on the cards. In July the chancellor announced a series of cuts, cancelling planned spending on the reform of social care, withdrawing the winter fuel payment to most pensioners, and ordering departments to make efficiency savings to help fund pay awards.

Other than for the NHS, Reeves is expected to squeeze spending in “unprotected” departments (prisons and local government, for example). On welfare spending, the Treasury has the rising bill for disability and incapacity benefits in its sights.

But even these decisions leave the government with a major funding dilemma. How will it pay for capital spending, everything from new hospitals and schools to roads, bridges and other infrastructure? All are key to boosting long-term growth.

While one of Reeves’ fiscal rules aims to ensure that day-to-day spending must be balanced by tax receipts (leading to the need for tax increases), borrowing for long-term public investment is not part of that calculation. But any increased borrowing for investment appears to be sharply curtailed by another fiscal rule, which says that total government debt (including that incurred by borrowing to invest) as a percentage of GDP must be falling within five years.

New government, new rules?

Despite Labour’s embrace of both these tight fiscal rules during the election campaign, the chancellor has now confirmed that she wants to modify this debt rule to allow herself to borrow more.

She plans to change how overall government debt is measured, effectively redefining it by including more government assets to set against the amount being borrowed. The likely new measure, known as “public sector net financial assets”, would include assets like funded local government pension schemes and student loans income, as well as government-owned companies like Great British Energy.

This could give the chancellor up to £50 billion in extra borrowing power for public investment. Her argument is that borrowing to build infrastructure gives the government a tangible asset that will pay for itself in the long term by boosting growth and tax receipts.

None of the choices facing Rachel Reeves will be easy.

The government’s spending watchdog, the OBR, agrees that in the long term, well-planned public sector investment could benefit the economy, although it says it would take a long time to materialise. Many observers, including the former head of the civil service, Gus O’Donnell, and Mark Carney, the former governor of the Bank of England, strongly support increased public investment as a way to boost lagging productivity.

But there are risks in this strategy if it unsettles financial markets. Total government debt on the current measure now stands at £2.6 trillion, nearly the same size as the whole UK economy. It is costing the Treasury around £74 billion a year in interest payments, almost the size of the education budget.

If the bond markets (which buy government debt) take fright, they could force up the cost of borrowing further, which could raise interest rates on mortgages and other consumer borrowing. And news of the chancellor’s plan to change to the fiscal rule did cause bond yields to rise slightly. This suggests if government debt rises too rapidly, even within the new rules, this could have a destabilising effect. So the chancellor will have to judge carefully how much of the extra headroom she should use.

Like all Labour chancellors, Reeves faces the task of keeping both voters and the financial markets happy at the same time. Her strategy could end up alienating rather than pleasing both sides.

Given the scale of Labour’s ambitions, balanced against her limited resources, she may have little choice but to take such a bold approach. But her path between alienating business and disillusioning the public is a narrow one. And the longer it takes for her strategy to bear fruit in terms of a better standard of living and improved public services, the more difficult things will become politically.

Steve Schifferes does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. In her first budget, the chancellor faces a minefield of risks – https://theconversation.com/in-her-first-budget-the-chancellor-faces-a-minefield-of-risks-241939

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI United Kingdom: Budget will invest in foundations of future growth

Source: United Kingdom – Executive Government & Departments

Chancellor Rachel Reeves is in Washington D.C. for her first IMF Annual Meetings, where she will say that the Budget is about investing in future growth.

Chancellor Rachel Reeves at the IMF Annual Meetings in Washington D.C.

Reeves will set out how public investment will drive innovation in science and technology, the transition to clean energy, and upgraded infrastructure.
Chancellor to represent British interests in G7, G20 and IMF discussions on the global economy, international financial system and ongoing support for Ukraine.

Rachel Reeves will tell her global counterparts that the Government’s first Budget will “invest in the foundations of future growth,” as she attends her first annual meetings of the International Monetary Fund (IMF) in Washington D.C as Chancellor.

The Chancellor will pledge that the Budget next week will be “built on the rock of economic stability” to fix the foundations and deliver change. She will set out how public investment will help fuel mission-led government, from boosting investment in science and technology, transitioning to clean energy and upgrading infrastructure.

The Chancellor will attend G7, G20 and IMF meetings to represent Britain’s interests on issues including the global economy, the international financial system and ongoing support for Ukraine. This follows the UK’s announcement of its £2.26bn contribution to the G7’s Extraordinary Revenue Acceleration (ERA) Loans for Ukraine scheme, backed by the profits from sanctioned Russian sovereign assets. She will also hold a series of bilateral meetings with her international counterparts.

Chancellor of the Exchequer Rachel Reeves said:

A Britain built on the rock of economic stability is a Britain that is a strong and credible international partner. I’ll be in Washington to tell the world that our upcoming Budget will be a reset for our economy as we invest in the foundations of future growth.

It’s from this solid base that we will be able to best represent British interests and show leadership on the major issues like the conflicts in the Middle East and Ukraine.

At the Annual Meetings, Chancellor Reeves will support proposals to expand financing for development, needed for countries to meet the United Nations’ Sustainable Development Goals and tackle unsustainable debt. She will also press for all G20 countries to meet G20 best practice on debt transparency and move swiftly to implement support for countries facing pressing liquidity problems. The Chancellor will welcome the agreement of a new G20 roadmap to scale up financing to developing countries through Multilateral Development Banks.

It is the 80th anniversary year of the founding of the IMF and the World Bank, established at a conference in Bretton Woods, New Hampshire in 1944 to promote international cooperation on economic and monetary policies. At this years’ gathering the Chancellor will also call for change to the global financial system to deliver a fairer deal for vulnerable countries.

The IMF released its latest survey of the global economy on Tuesday, in which the UK’s growth forecast was upgraded to 1.1% in 2024. Whilst this is welcome, the Chancellor will make clear to her counterparts that there will be more long-term decisions required to reinforce stability and deliver on the promise of change at her first Budget on 30 October.

The Chancellor’s trip to Washington D.C. follows the International Investment Summit earlier this month, at which it was announced that nearly 38,000 jobs are set to be created across the UK thanks to a total of £63 billion in investment commitments from businesses around the world. The vote of confidence in the UK is a clear sign Britain is open for business and ready to drive sustainable growth across the country.

Published 25 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Global: Foreign countries are helping autocracies repress exiled dissidents in return for economic gain

Source: The Conversation – USA – By Rebecca Cordell, Assistant Professor of Political Science, University of Pittsburgh

Governments, even democratic ones, are willing to aid autocracies in silencing exiled dissidents if the host nation thinks it’s in its economic interest.

That is what we found when looking into cases of transnational repression – the act of governments reaching across their national border to repress diasporas and exiles – from 2014 to 2020.

Since 2014, international watchdog Freedom House recorded 1,034 cases of governments reaching across borders to illegally deport, abduct, intimidate or assassinate their citizens.

The most frequent offenders were autocratic countries such as China (213 cases), Turkey (111), Egypt (42), Tajikistan (38), Russia (32) and Uzbekistan (29).

These governments have extended their reach into over 100 foreign countries to silence critics abroad. While autocracies sometimes act alone or collaborate with nongovernment actors, the most common form of transnational repression involves the governments of countries to which targeted people have fled. This includes democracies working closely with autocratic regimes to arrest, detain and deport people who face the risk of persecution and repression in the home country.

Our analysis of Freedom House data found that cooperation in transnational repression is most common among trade partners and when foreign countries wish to maintain or improve their economic relationship with autocratic governments.

Meanwhile, autocratic countries were most successful in securing cooperation among foreign countries with a weak rule of law.

For example, Turkey has successfully secured cooperation from multiple countries with a weak rule of law, such as Lebanon, in its efforts to silence Turkish journalists and overseas citizens linked to the opposition Gülen movement. Meanwhile, China has used its economic leverage to compel foreign governments to cooperate, with Cambodia deporting 20 Uyghur asylum-seekers to China after signing 14 trade deals with the country. Similarly, Thailand forcibly returned numerous dissident journalists to China, its largest trade partner.

Our analysis looked specifically at countries hosting refugees and asylum-seekers, since having diaspora populations is necessary for transnational repression to occur. For example, we included Poland, which hosts many Russian refugees, but excluded Belize, which has none.

Using Freedom House’s database, we tracked 608 cases of direct government cooperation in transnational repression. We focused specifically on detentions, renditions without legal representation, and unlawful deportations, but we excluded cases such as assassinations where host countries weren’t directly involved.

Then, using statistical models, we analyzed IMF data on annual trade flows and World Bank assessments of a country’s rule of law.

We found strong quantitative evidence that international cooperation on transnational repression relies on a country’s economic ties to the origin country and the quality of the country’s rule of law.

Why it matters

Our findings suggest that many countries are willing to sacrifice the civil liberties of foreign dissidents for economic opportunities with authoritarian governments. Autocracies also appear to be strategically targeting vulnerable states with weak rule of law institutions, such as the police, courts or immigration authorities.

Foreign countries that are less concerned about the consequences of breaking the rule of law are easier to co-opt and coerce, especially when they’re more financially dependent on the autocratic partner.

This provides autocracies with both the opportunity to repress and the leverage to elicit cooperation in violation of the “non-refoulement” rule – which, under international law, protects migrants from being returned to a country where they are at risk of torture.

What still isn’t known

It is difficult to know the full scale of transnational repression. Data measuring transnational repression is able to capture only the “tip of the iceberg,” as Freedom House has put it.

Many instances likely go unobserved due to the secret nature of human rights violations and governmental attempts to cover up, censor and deny abuses. We also know less about what causes autocracies to carry out transnational repression through collaborations with nonstate actors – including political parties, educational and religious groups, businesses and criminal gangs – rather than governments.

More research is needed to establish what prompts autocracies to engage in different types of tactics, from nonphysical instances of transnational repression – harassment, intimidation and threats – to physical forms, such as detention, abduction and physical violence.

The decision to engage in one tactic over another may be driven by different strategic benefits and costs.

The Research Brief is a short take on interesting academic work.

The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Foreign countries are helping autocracies repress exiled dissidents in return for economic gain – https://theconversation.com/foreign-countries-are-helping-autocracies-repress-exiled-dissidents-in-return-for-economic-gain-240069

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI: North American Construction Group Ltd. Announces Credit Facility Extension

Source: GlobeNewswire (MIL-OSI)

ACHESON, Alberta, Oct. 25, 2024 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) today announced it has finalized an extension and amendment of its senior secured credit facility (the “Credit Facility”). The maturity date has been extended by one year to October 3, 2027. In addition to the extension, the capacity has been increased to provide greater flexibility in operating the Company’s Australian and Canadian businesses.

“We would like to take this opportunity to once again thank National Bank Financial and our syndicate partners for their ongoing support,” Jason Veenstra, Chief Financial Officer stated. “It is encouraging to have all existing members extend. This low-cost facility is the foundation of our debt financing and provides the liquidity and term needed for our business.”

The Credit Facility provides lending capacity of $525 million (from $475 million) through Canadian and Australia dollar tranches and allows for an additional $400 million of secured equipment financing from third party providers (from $350 million). The facility is comprised of a revolver with no scheduled repayments and is not governed by a borrowing base that limits available borrowings. Financial covenants are tested quarterly on a trailing four quarter basis and are generally consistent with the previous agreement except for the fixed charge ratio being replaced with an interest coverage ratio.

About NACG
NACG is one of Canada and Australia’s largest providers of heavy construction and mining services. For over 70 years, NACG has provided services to mining, resource, and infrastructure construction markets.

Jason Veenstra, CPA, CA
Chief Financial Officer
P: 780.960.7171
E: ir@nacg.ca

The information provided in this release contains forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words “expected”, “estimated” or similar expressions, including the anticipated revenues and backlog to be generated by the contract. The material factors or assumptions used to develop the above forward-looking statements and the risks and uncertainties to which such forward-looking statements are subject are highlighted in the Company’s MD&A for the year ended December 31, 2023 and quarter ending June 30, 2024. Actual results could differ materially from those contemplated by such forward-looking statements because of any number of factors and uncertainties, many of which are beyond NACG’s control. For more complete information about NACG, please read our disclosure documents filed with the SEC and the CSA. These free documents can be obtained by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at www.sedar.com.

The MIL Network –

January 25, 2025

MIL-OSI Economics: How To Do Better

Source: International Monetary Fund

Speech by IMF Managing Director Kristalina Georgieva at the 2024 Annual Meetings Plenary

October 25, 2024

As prepared for delivery

Thank you, Governor Munawar, and a very good morning to all!

It is my privilege to address you on behalf of the talented and dedicated staff of the IMF—and to do so alongside Ajay Banga, who has been a great partner since he started in his job. Ajay, I cannot stress enough how much I admire your leadership of the World Bank and value our partnership—the two of us, as well as between our institutions!

Let me start with some good news: inflation is in retreat. From 5.7 percent in the fourth quarter of last year, our World Economic Outlook sees global inflation falling to 5.3 percent in the current quarter and further to 3.5 percent in Q4 2025—with a faster decline in advanced economies. Tight monetary policies have worked without breaking the back of the global economy. Big sense of relief.

But not yet time for celebration—including because, even if inflation is coming down, the new and higher price level is here to stay. Families are hurting.

And, looking ahead, the world now faces a low growth – high debt trajectory:

We project world GDP to grow at an anemic average rate of 3.2 percent per year over the next five years—just look at how our forecasts have been revised lower and lower over the years.
At the same time, we forecast global public debt to keep rising—with a risk that it could exceed our baseline projection by as much as 20 percent of world GDP in a severe but plausible negative scenario. A hundred trillion dollars in government debt worldwide. Higher interest payments eating up a growing slice of fiscal revenues, especially in low-income and emerging market countries. All of this as spending pressures pile up.

Spending priorities include outlays related to climate and demography and, in emerging market and low-income countries, investment to close development gaps. By 2030, IMF research sees these spending pressures adding some 7 percent of GDP to annual expenditure in advanced economies, 9 percent of GDP in emerging markets, and 14 percent in low-income developing countries.

To make matters worse, the world is fracturing, and trade is no longer the powerful engine of growth that it used to be. The retreat from global economic integration—driven by both national security concerns and the anger of those who lost out from it—is visible in a mushrooming of industrial policy measures, trade barriers, and protectionism.

There is much work to do.

My message to our members is this: first, shift toward rebuilding fiscal buffers; second, invest in growth-enhancing reforms; and third, work together to tackle global challenges.

With monetary policy easing, fiscal consolidation should start now. Credibility requires persuasive communication with the public. Multi-year fiscal plans should lay out consolidation paths tailored to country-specific situations.

This is not easy. Governments face a dilemma—more accurately, a “trilemma”—of large spending needs, political redlines on taxation, and the need to rebuild buffers.

Domestic revenue mobilization will be critical for many countries to square this circle. Growth-enhancing investments, notably in climate and technology, must be protected. And consolidation should be designed so it does not come at the expense of social protection and jobs.

The IMF can help. Take for instance the case of Jamaica, where the government secured public support for a carefully designed package of revenue and expenditure reforms that protected public investment and social spending yet still succeeded in almost halving debt between 2012 and 2022. More than 20 countries have been able to boost their tax revenues by over 5 percent of GDP in the past three decades. There are many good examples.

In parallel with fiscal consolidation, countries must launch ambitious reforms to lift their growth potential. Higher growth not only helps creates well-paid jobs but also eases the fiscal trilemma by generating higher tax revenues.

These reforms span labor-market measures such as skills enhancement and job matching, product-market measures to cut red tape and mobilize savings, and specific measures to foster innovation and raise productivity. In the advanced economies, venture capital and capital market integration are key priorities; elsewhere, the focus needs to include steps to improve governance and institutions.

Real progress is possible. A new IMF study shows that reforms are best developed through two-way dialogue with the public, with measures to mitigate the impact on those who risk losing out.

But domestic policies will not be enough. To tackle today’s global challenges, we need—more than ever—cooperation andmultilateral action. The IMF and World Bank have a critical role to play here.

Take the issue of debt. In countries on the edge of fiscal distress, proactive steps are needed to restore debt sustainability. The Fund has prioritized addressing debt vulnerabilities and enhancing debt resolution, with efforts that are now paying off. Already, the Common Framework has delivered milestone achievements for Ghana and Ethiopia—even if further efforts are needed to increase predictability and accelerate timelines in debt treatments.

Progress has been underpinned by enhanced cooperation among stakeholders at the Global Sovereign Debt Roundtable, which has helped build consensus on technical issues.

In today’s high-temperature geopolitical environment, we can’t take cooperation for granted. This is why everything we do at the Fund is about delivering value to our members, tailored to their needs.

Our bilateral surveillance provides timely diagnostics and advice to help countries implement strong policies. During the pandemic, it was pivotal in helping countries assemble coordinated policy responses swiftly, despite high uncertainty.

The focus of our regular consultations with member countries ranges from supporting institutional development in fragile and conflict-affected states, to capital flow management in emerging market economies, to advising on the details of interest rate policy in advanced economies. And we have deepened our analysis of the macroeconomic policy challenges posed by the green and digital transformations.

Our multilateral surveillance then pulls it all together to extract cross-cutting lessons for all. Again, the goal is to ensure that problems are identified and addressed early. This is precisely what we do in our flagship reports: the World Economic Outlook, the Global Financial Stability Report, and the Fiscal Monitor.

All of this is complemented by our capacity development work. We have fielded thousands of technical assistance missions in the last five years alone, transferring knowledge and creating a deep well of goodwill in the process.

In short, we are the world’s essential transmission line for the sharing of country experiences across our membership.

And then there is the Fund’s unique role as a lender at the center of the global financial safety net.

We are the first responder in times of trouble. Countries know we are here to catch them if they fall—especially the poorest and most vulnerable.

We have stepped up our lending to support reforms and help vulnerable countries address balance of payment needs and build resilience in the face of multiple shocks.

Barbados and Benin, Cabo Verde and Costa Rica, Moldova and Morocco, Suriname and Sri Lanka, to name but a few—the list of recent IMF program successes is long.

In the years since the onset of the pandemic, we have set records for both our total lending volume and the number of countries assisted, with the stock of concessional credit outstanding from our Poverty Reduction and Growth Trust tripling to $28 billion. And, in the less than three years since its launch, 20 countries have received long-term loans from our Resilience and Sustainability Trust, supporting policies to boost resilience to climate change.

At the Fund we are currently exhibiting an artwork that captures our lending volumes over the decades in a beautifully visual way—the results are truly remarkable, please come and see for yourself!

The 50 percent quota increase we agreed last year in Marrakesh, solidifies our lending capacity. We will build on these foundations by continuing to refine our toolkit. Strengthening the Fund’s lending role and precautionary credit facilities strengthens the global financial safety net. All countries stand to benefit—because less instability means the whole world does better, and because aggregating resources together is efficient.

Fund support is essential for countries with a limited capacity to build international reserves—and doubly so given that five countries own more than half of the world’s total reserves, while many countries remain relatively unprotected.

At the IMF, we have just had a great example of cooperation occurring on the very eve of these Annual Meetings. Reflecting years of strong net income, our Executive Board agreed a set of measures that will, first, safeguard the financial strength that underpins our support for our members; second, reduce charges and surcharges on our regular lending by an average of 36 percent; and, third, deliver a comprehensive reform and financing package that more than doubles our concessional lending capacity and places our support to low-income countries on a firm footing for years to come.

Beyond the substance of these important reforms, let me highlight that we succeeded in securing unanimous support. Not a single member country objected.

This did not “just happen”—we had to work very hard for it, and we iterated many times with our members to deliver a result that in the end worked for all.

This is a lesson for the coming years. No matter how difficult the geopolitics may be, we can work to preserve the spirit of concrete, actionable cooperation. Countries rally not in idealism or charity but out of enlightened self-interest.

To do our job well we must strive for inclusivity. In this spirit I ask you all to please join me in warmly welcoming Prime Minister Daniel Risch and his team—they are here to represent our newest, 191st member: the Principality of Liechtenstein.

We must also never stop striving for fair representation of the world we live in. Work is ongoing with our Board and the membership to develop, by June, possible approaches as a guide to better reflect members’ weight in the world economy, including through a new quota formula.

Similarly, voice matters. I am delighted that on November 1 our Board will welcome a third Director for Sub-Saharan Africa, ensuring more voice for this region.

Last but not least, cooperation does not happen in a vacuum. At the Fund, we rely on institutional strength and our excellent staff to do the work of supporting our member countries. Please join me in a round of applause for them!

Let me close with an anecdote.

This year being the 80th anniversary of the historic Bretton Woods conference, Ajay and I decided to go to our birthplace. We took a group of leading thinkers with us for two days of reflection. We went to draw inspiration from our founders: men who, even in the darkest days of total war, were able to shape a new world. And we understood: if Keynes and White could shine a light in a tunnel that dark, then clearly, our mission is to carry their torch.

The skies over Bretton Woods were mostly dark and gloomy during those two days last month. But then—suddenly—the sun broke through, and Mother Nature gifted us a gorgeous double rainbow. Set against the turning foliage of Mount Washington in the Fall, it was just spectacular. There is no other way to put it.

To us, that was a great omen—and a reminder that the sun is always there, it is only the clouds that come and go. Our founders have left us a legacy to see through darker times. And so we will—because we know it can be done.

Thank you!

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER:

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: 2024 Annual Meetings – Address by the Chair of the Boards of Governors

Source: International Monetary Fund

H.E. Ahmed Munawar
Governor of the Maldives Monetary Authority

October 25, 2024

بسم الله الرّحمن الرّحيم

As-alam-alaikum and a very good morning

It is a great honor to welcome you to the 2024 Plenary of the Boards of Governors of the International Monetary Fund and the World Bank Group.

A warm welcome to the Managing Director of the IMF Kristalina Georgieva and the President of the World Bank Group Ajay Banga. Congratulations Ms. Georgieva, on commencing your second term as the MD.

This year is special. We are celebrating the 80th anniversary of the Bretton Woods Institutions—a major milestone in the history of global economic governance. I would like to reflect on the words of the first Annual Meetings Chair of the Boards of Governors, U.S. Treasury Secretary, John W. Snyder: “In joining the Fund and Bank, our respective governments have not only invested large sums of money, but they have in a considerable measure staked their economic destinies on the success of these institutions. We must not fail our governments and, above all, the hopeful people we represent.”

These words hold true today, as they did 80 years ago. For 80 years, the IMF and World Bank have remained beacons of hope, managing global crises from wars to pandemics. Even in tough times, we find resilience. Chairing the Board of Governors in this historic meeting by a small state like mine is a sign of the inclusivity of these institutions.

Despite tighter financial conditions and rising geopolitical tensions, the global economy is showing remarkable strength. A soft landing is within reach. Inflation is moderating. Yet, we cannot become complacent. Uncertainty remains high. Ongoing conflicts and upheavals in many parts of the world cast a shadow over our progress, and further escalations would have a much larger impact on vulnerable economies, including through higher commodity prices.

It is true that significant challenges remain, and I would like to highlight three such challenges.

Firstly, climate change. Small countries like the Maldives, are on the front lines of climate change. The Maldives aims to have 33% of its electricity from renewable sources by 2028. This transition will build climate resilience and deliver significant fiscal and foreign exchange savings. Achieving the target requires around 1.3 billion dollars to upgrade power infrastructure, of which only 13% has been pledged by donors so far. Small Island Developing States (SIDS) like the Maldives call on international financial institutions to provide easier and affordable climate finance for adaptation and mitigation on the principles of a just energy transition. While the IMF’s Resilience and Sustainability Fund and the World Bank’s record 42.6 billion dollars in fiscal year 2024 in climate finance are commendable. More is needed, especially for climate vulnerable SIDS. Additionally, we must innovatively rethink and implement strategies to mobilize private sector investments.

Secondly, debt sustainability. Over two-thirds of emerging markets and developing economies are at high risk of debt distress. While the Global Sovereign Debt Roundtable has encouraged collaboration, more action is needed. Debt sustainability analysis must better account for country context, and the ongoing review of the Debt Sustainability Framework for Low-Income Countries should look at the specific needs of SIDS. The IMF, World Bank, and MDBs should take bold steps to support countries in debt distress. MDBs can also create tools like debt-for-climate swaps, exchanging debt relief for climate adaptation investments.

Finally,structural reforms. We must strengthen the productive and state capacities of emerging and developing economies. The Bretton Woods Institutions should focus more on job creation, equal opportunities, economic diversification, and the impact of refugee flows. Similarly, structural reforms must be socially acceptable, ensuring benefits are widely shared.

Over the past year, the IMF and World Bank have undertaken significant initiatives to support our members. The completion of the 16th General Review of Quotas, the IDA21 Replenishment, and discussions on quota realignment and strengthening World Bank Group’s financing will help ensure that these institutions remain adequately resourced. At the same time, let us not lose sight of the importance of providing adequate access and representation to the countries which need MDB support the most, as well as ensuring evenhanded treatment across the membership.

The review of the IMF’s Poverty Reduction and Growth Trust, Charges and Surcharge Policy together with the World Bank’s IDA21 Replenishment demonstrate support for our most vulnerable nations.

As I reflect on the discussions I have had during these Annual Meetings, one theme has emerged strongly: the critical need for multilateral cooperation. My friends, collective action is the antidote to an increasingly fragmented world. The 80th anniversary of the Bretton Woods Institutions provides a moment to reflect on our achievements, and plan for a better future together. Let me extend a warm welcome to Liechtenstein, which earlier this week joined the IMF as its hundred and ninety-first member, further reinforcing the importance of multilateralism. I am pleased with addition of the 25^th Chair at the IMF’s Executive Board for Sub-Saharan Africa, and urge my fellow Governors to champion gender diversity and equality.

As the Bretton Woods Institutions plan for the future, they should tailor their advice and activities to meet the specific needs and capacities of each member. If we fail to do this, we fail the people we represent, as the first Annual Meetings Chair, John Snyder, wisely reminded us 80 years ago. As I conclude, let us remind ourselves of our unwavering commitment to macroeconomic stability, prosperity, and cooperation.

Thank you.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER:

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson

MIL OSI Economics –

January 25, 2025

MIL-OSI: Commercial National Financial Corporation Reports 3rd Quarter 2024 Results

Source: GlobeNewswire (MIL-OSI)

ITHACA, Mich., Oct. 25, 2024 (GLOBE NEWSWIRE) — Commercial National Financial Corporation (Pink Sheets: CEFC) reported net income for the third quarter of 2024 of $1,408,000 or $0.36 per share compared to third quarter 2023 net income of $1,702,000 or $0.43 per share. Return on Equity (ROE) was 11.32% for the third quarter of 2024 compared to 15.42% for the third quarter of 2023.

Net interest income for the third quarter of 2024 increased by $107,000 or 2.3% compared to the respective 2023 period. Interest income increased by $288,000 due to higher yields on loans and other interest-earning assets, while interest expense only increased by $181,000. Non-interest income remained relatively consistent at $550,000. Operating expenses increased by $255,000 or 7.8% mainly due to higher wages and benefits expense.

Total assets were $574.3 million as of September 30, 2024 compared to $587.8 million as of September 30, 2023. The decrease in assets was due to the repayment of wholesale borrowings and trust preferred debt, along with a 0.7% decrease in deposit balances. The security portfolio decreased by $18.3 million, as funds from matured securities were used to repay wholesale borrowings. While total loans decreased by $6.9 million or 1.7%, loan quality remained strong with a non-performing assets ratio of 0.21%. Additionally, CEFC’s wholly owned subsidiary, Commercial Bank, remains significantly above “well capitalized” for regulatory purposes.

Our new banking office in Grand Rapids was opened earlier this year and we are excited to offer our full banking services to the Grand Rapids community.

Visit www.commercial-bank.com to view the latest news releases and other information about CEFC and Commercial Bank.



Selected Financial Data (unaudited):
	Three Months Ended						Nine Months Ended
	Sep 30, 2024			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
Return on Equity (ROE)		11.32%			15.42%			11.09%			14.77%
Return on Assets (ROA)		0.98%			1.14%			0.92%			1.06%
Net Interest Margin		3.47%			3.25%			3.37%			3.25%

	Sep 30, 2024			Sep 30, 2023
Non-Performing Assets Ratio		0.21%			0.16%
Tier 1 Leverage Capital Ratio⁽¹⁾		10.17%			9.49%
Total Risk-Based Capital Ratio⁽¹⁾		16.35%			15.58%
Book Value Per Share		$12.80			$10.73
Market Value Per Share		$9.03			$7.99
⁽¹⁾ Ratios are for Commercial Bank


Consolidated Statements of Income (unaudited):
	Three Months Ended						Nine Months Ended
	Sep 30, 2024			Sep 30, 2023			Sep 30, 2024			Sep 30, 2023
Interest Income	$	6,744,483		$	6,456,258		$	20,069,571		$	18,812,071
Interest Expense		2,067,285			1,886,333			6,322,485			5,011,890
Net Interest Income		4,677,198			4,569,925			13,747,086			13,800,181
Provision for credit losses		229			(217,000	)		(38,972	)		(108,000	)
Non-interest income		549,612			554,697			1,700,596			1,542,498
Operating Expenses		3,518,227			3,263,220			10,668,945			9,723,511
Income before taxes		1,708,354			2,078,402			4,817,709			5,727,168
Income tax expense		300,020			376,900			836,080			1,012,663
Net Income	$	1,408,334		$	1,701,502		$	3,981,629		$	4,714,505

Net Income per share – diluted	$	0.36		$	0.43		$	1.00		$	1.19
Dividends declared	$	0.14		$	0.14		$	0.42		$	0.42


Consolidated Balance Sheets (unaudited):

	Sep 30, 2024			Sep 30, 2023
Assets
Cash and cash equivalents	$	55,606,415		$	42,306,192
Time deposits with other banks		1,992,000			4,482,000
Securities		77,226,328			95,491,438
Loans		407,594,529			414,449,979
Allowance for credit losses		(3,528,332	)		(3,647,087	)
Loans, net		404,066,197			410,802,892
Premises and equipment, net		10,092,279			8,819,331
Other assets		25,285,806			25,886,826
Total Assets	$	574,269,025		$	587,788,679

Liabilities
Deposits	$	505,613,266		$	509,123,260
FHLB borrowings		4,000,000			19,000,000
Trust preferred		10,310,000			13,403,000
Other liabilities		3,598,596			3,699,482
Total Liabilities		523,521,862			545,225,742

Equity
Total Equity		50,747,163			42,562,937
Total Liabilities and Equity	$	574,269,025		$	587,788,679

Contact:
Benjamin Z. Ogle
CFO
989-875-5562

The MIL Network –

January 25, 2025

MIL-OSI Russia: 2024 Annual Meetings – Address by the Chair of the Boards of Governors

Source: IMF – News in Russian