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MIL-OSI: Varonis Announces Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Annual recurring revenues grew 18% year-over-year
SaaS ARR as a percentage of total ARR was approximately 43%
Year-to-date cash from operations generated $90.9 million vs. $49.0 million last year
Year-to-date free cash flow generated $88.6 million vs. $46.0 million last year

NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) — Varonis Systems, Inc. (Nasdaq: VRNS), a leader in data security, today announced financial results for the third quarter ended September 30, 2024.

Yaki Faitelson, Varonis CEO, said, “We are encouraged by the many tailwinds that are contributing to the strong growth in our business, and our third quarter results reflect the continued strong adoption of our SaaS platform and positive momentum from our Managed Data Detection and Response offering.”

Guy Melamed, Varonis CFO & COO, added, “The robust demand for Varonis SaaS from both new and existing customers is evident with 43% of total company ARR coming from SaaS. This demand is benefiting our ARR growth and cash flow generation and gives us confidence as we enter the fourth quarter.”

Financial Summary for the Third Quarter Ended September 30, 2024

Total revenues were $148.1 million, compared with $122.3 million in the third quarter of 2023.
SaaS revenues were $57.8 million, compared with $13.7 million in the third quarter of 2023.
Term license subscription revenues were $68.8 million, compared with $84.0 million in the third quarter of 2023.
Maintenance and services revenues were $21.5 million, compared with $24.6 million in the third quarter of 2023.
GAAP operating loss was ($23.6) million, compared to GAAP operating loss of ($29.1) million in the third quarter of 2023.
Non-GAAP operating income was $9.1 million, compared to non-GAAP operating income of $4.9 million in the third quarter of 2023.

The tables at the end of this press release include a reconciliation of GAAP operating income (loss) to non-GAAP operating income (loss) and GAAP net income (loss) to non-GAAP net income (loss) for the three and nine months ended September 30, 2024 and 2023. An explanation of these measures is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

Key Performance Indicators and Recent Business Highlights

Annual recurring revenues, or ARR, was $610.0 million as of the end of the third quarter, up 18% year-over-year.
As of September 30, 2024, the Company had $1.2 billion in cash and cash equivalents, short-term deposits and short-term and long-term marketable securities.
During the nine months ended September 30, 2024, the Company generated $90.9 million of cash from operations, compared to $49.0 million generated in the prior year period.
During the nine months ended September 30, 2024, the Company generated $88.6 million of free cash flow, compared to $46.0 million generated in the prior year period.
Raised net proceeds of $394.1 million through an offering of 1.00% Convertible Senior Notes due 2029.
Announced new AI-powered data discovery and classification capabilities that enhance our industry-leading data classification technology.
Integrated the Varonis platform with SentinelOne and Microsoft Defender for Endpoint, expanding visibility to customers’ endpoints and enabling end-to-end threat detection and response.
Expanded Salesforce security offering with new automated remediation capabilities.

An explanation of ARR is included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.” In addition, the tables at the end of this press release include a reconciliation of net cash provided by operating activities to non-GAAP free cash flow. An explanation of this measure is also included below under the heading “Non-GAAP Financial Measures and Key Performance Indicators.”

Financial Outlook

For the fourth quarter of 2024, the Company expects:

Revenues of $162.0 million to $167.0 million, or year-over-year growth of 5% to 8%.
Non-GAAP operating income of $20.0 million to $22.0 million.
Non-GAAP net income per diluted share in the range of $0.13 to $0.14, based on 135.0 million diluted shares outstanding.

For full year 2024, the Company now expects:

ARR of $635.0 million to $639.0 million, or year-over-year growth of 17% to 18%.
Free cash flow of $95.0 million to $100.0 million.
Revenues of $554.4 million to $559.4 million, or year-over-year growth of 11% to 12%.
Non-GAAP operating income of $20.6 million to $22.6 million.
Non-GAAP net income per diluted share in the range of $0.26 to $0.27, based on 134.9 million diluted shares outstanding.

Actual results may differ materially from the Company’s Financial Outlook as a result of, among other things, the factors described below under “Forward-Looking Statements”.

Conference Call and Webcast
Varonis will host a conference call today, Tuesday, October 29, 2024, at 4:30 p.m. Eastern Time, to discuss the Company’s third quarter 2024 financial results. To access this call, dial 877-425-9470 (domestic) or 201-389-0878 (international). The passcode is 13749435. A replay of this conference call will be available through November 5, 2024 at 844-512-2921 (domestic) or 412-317-6671 (international). The replay passcode is 13749435. A live webcast of this conference call will be available on the “Investors” page of the Company’s website (www.varonis.com), and a replay will be archived on the website as well.

Non-GAAP Financial Measures and Key Performance Indicators
Varonis believes that the use of non-GAAP operating income (loss) and non-GAAP net income (loss) is helpful to our investors. These measures, which the Company refers to as our non-GAAP financial measures, are not prepared in accordance with GAAP.

Non-GAAP operating income (loss) is calculated as operating income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, and (iii) amortization of acquired intangible assets and acquisition-related expenses.

Non-GAAP net income (loss) is calculated as net income (loss) excluding (i) stock-based compensation expense, (ii) payroll tax expense related to stock-based compensation, (iii) amortization of acquired intangible assets and acquisition-related expenses, (iv) foreign exchange gains (losses) which include exchange rate differences on lease contracts as a result of the implementation of ASC 842 and (v) amortization of debt issuance costs.

The Company believes that the exclusion of these expenses provides a more meaningful comparison of our operational performance from period to period and offers investors and management greater visibility to the underlying performance of our business. Specifically:

Stock-based compensation expenses utilize varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expenses;
Payroll taxes are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, factors which may vary from period to period;
Acquired intangible assets are valued at the time of acquisition and are amortized over an estimated useful life after the acquisition, and acquisition-related expenses are unrelated to current operations and neither are comparable to the prior period nor predictive of future results;
The Company incurs foreign exchange gains or losses from the revaluation of its significant operating lease liabilities in foreign currencies as well as other assets and liabilities denominated in non-U.S. dollars, which may vary from period to period; and
Amortization of debt issuance costs, which relate to the Company’s convertible senior notes issued in 2020 and 2024, are a non-cash item.

Free cash flow is calculated as net cash provided by or used in operating activities less purchases of property and equipment. We believe that free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by or used in our operations that, after the investments in property and equipment, can be used for strategic initiatives.

Each of our non-GAAP financial measures is an important tool for financial and operational decision making and for evaluating our own operating results over different periods of time. The non-GAAP financial measures do not represent our financial performance under U.S. GAAP and should not be considered as alternatives to operating income (loss) or net income (loss) or any other performance measures derived in accordance with GAAP. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, and exclude expenses that may have a material impact on our reported financial results. Further, stock-based compensation expense and payroll tax expense related to stock-based compensation have been, and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of the compensation provided to our employees. Also, the amortization of intangible assets are expected recurring expenses over the estimated useful life of the underlying intangible asset and acquisition-related expenses will be incurred to the extent acquisitions are made in the future. Additionally, foreign exchange rates may fluctuate from one period to another, and the Company does not estimate movements in foreign currencies. Finally, the amortization of debt issuance costs are expected recurring expenses until the maturity of the senior notes in 2029.

The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Varonis urges investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures included below, and not to rely on any single financial measures to evaluate our business.

A reconciliation for non-GAAP operating income (loss) and non-GAAP net income (loss) referred to in our “Financial Outlook” is not provided because, as forward-looking statements, such reconciliation is not available without unreasonable effort due to the high variability, complexity, and difficulty of estimating certain items such as charges to stock-based compensation expense and currency fluctuations which could have an impact on our consolidated results. The Company believes the information provided is useful to investors because it can be considered in the context of the Company’s historical disclosures of this measure.

ARR is a key performance indicator defined as the annualized value of active term-based subscription license contracts, SaaS contracts, and maintenance contracts in effect at the end of that period. Subscription license contracts, SaaS contracts, and maintenance contracts are annualized by dividing the total contract value by the number of days in the term and multiplying the result by 365. The annualized value of contracts is a legal and contractual determination made by assessing the contractual terms with our customers. The annualized value of maintenance contracts is not determined by reference to historical revenues, deferred revenues or any other GAAP financial measure over any period. ARR is not a forecast of future revenues, which can be impacted by contract start and end dates and renewal rates.

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including regarding the Company’s growth rate and its expectations regarding future revenues, operating income or loss or earnings or loss per share. These statements are not guarantees of future performance but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: the impact of potential information technology, cybersecurity or data security breaches; risks associated with anticipated growth in Varonis’ addressable market; general economic and industry conditions, such as foreign currency exchange rate fluctuations and expenditure trends for data and cybersecurity solutions; Varonis’ ability to predict the timing and rate of subscription renewals and their impact on the Company’s future revenues and operating results; risks associated with international operations; the impact of global conflicts on the budgets of our clients and on economic conditions generally; competitive factors, including increased sales cycle time, changes in the competitive environment, pricing changes and increased competition; the risk that Varonis may not be able to attract or retain employees, including sales personnel and engineers; Varonis’ ability to build and expand its direct sales efforts and reseller distribution channels; risks associated with the closing of large transactions, including Varonis’ ability to close large transactions consistently on a quarterly basis; new product introductions and Varonis’ ability to develop and deliver innovative products; Varonis’ ability to provide high-quality service and support offerings; the expansion of cloud-delivered services; and risks associated with our convertible notes and capped-call transactions. These and other important risk factors are described more fully in Varonis’ reports and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof, and Varonis undertakes no duty to update or revise this information, whether as a result of new information, new developments or otherwise, except as required by law.

About Varonis

Varonis (Nasdaq: VRNS) is a leader in data security, fighting a different battle than conventional cybersecurity companies. Our cloud-native Data Security Platform continuously discovers and classifies critical data, removes exposures, and detects advanced threats with AI-powered automation.

Thousands of organizations worldwide trust Varonis to defend their data wherever it lives — across SaaS, IaaS, and hybrid cloud environments. Customers use Varonis to automate a wide range of security outcomes, including data security posture management (DSPM), data classification, data access governance (DAG), data detection and response (DDR), data loss prevention (DLP), and insider risk management.

Varonis protects data first, not last. Learn more at www.varonis.com.

Investor Relations Contact:
Tim Perz
Varonis Systems, Inc.
646-640-2112
investors@varonis.com

News Media Contact:
Rachel Hunt
Varonis Systems, Inc.
877-292-8767 (ext. 1598)
pr@varonis.com

Varonis Systems, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except for share and per share data)
	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
	Unaudited						Unaudited
Revenues:
Term license subscriptions	$	68,751		$	83,963		$	187,460		$	250,306
SaaS		57,805			13,716			136,575			21,437
Maintenance and services		21,512			24,629			68,401			73,318
Total revenues		148,068			122,308			392,436			345,061

Cost of revenues		24,007			17,381			67,792			52,404

Gross profit		124,061			104,927			324,644			292,657

Operating expenses:
Research and development		53,459			44,818			146,219			135,694
Sales and marketing		71,378			68,610			212,646			207,324
General and administrative		22,864			20,646			65,878			61,618
Total operating expenses		147,701			134,074			424,743			404,636

Operating loss		(23,640	)		(29,147	)		(100,099	)		(111,979	)
Financial income, net		10,245			8,634			27,039			24,872

Loss before income taxes		(13,395	)		(20,513	)		(73,060	)		(87,107	)
Income taxes		(4,938	)		(2,504	)		(9,711	)		(12,911	)

Net loss	$	(18,333	)	$	(23,017	)	$	(82,771	)	$	(100,018	)

Net loss per share of common stock, basic and diluted	$	(0.16	)	$	(0.21	)	$	(0.74	)	$	(0.92	)

Weighted average number of shares used in computing net loss per share of common stock, basic and diluted		112,268,210			109,429,722			111,382,582			109,187,063

*Stock-based compensation expense for the* *three and nine* *months ended* *September 30, 2024* *and* *2023* *is included in the Condensed Consolidated Statements of Operations as follows (in thousands):*

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	Unaudited				Unaudited
Cost of revenues	$	1,357	$	1,416	$	4,017	$	5,946
Research and development		10,442		11,323		31,057		37,480
Sales and marketing		9,860		11,201		30,985		37,861
General and administrative		10,272		9,040		28,054		26,889
	$	31,931	$	32,980	$	94,113	$	108,176

*Payroll tax expense related to stock-based compensation for the* *three and nine* *months ended* *September 30, 2024* *and* *2023* *is included in the Condensed Consolidated Statements of Operations as follows (in thousands):*

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	Unaudited				Unaudited
Cost of revenues	$	15	$	24	$	631	$	385
Research and development		187		75		566		232
Sales and marketing		150		122		3,050		1,820
General and administrative		49		18		1,165		486
	$	401	$	239	$	5,412	$	2,923

*Amortization of acquired intangibles and acquisition-related expenses for the* *three and nine* *months ended* *September 30, 2024* *and* *2023* *is included in the Condensed Consolidated Statements of Operations as follows (in thousands):*

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	Unaudited				Unaudited
Cost of revenues	$	381	$	382	$	1,143	$	1,144
Research and development		—		412		—		1,235
Sales and marketing		—		—		—		—
General and administrative		—		—		—		—
	$	381	$	794	$	1,143	$	2,379

Varonis Systems, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
	September 30, 2024			December 31, 2023
	Unaudited
Assets
Current assets:
Cash and cash equivalents	$	282,218		$	230,740
Marketable securities		562,568			253,175
Short-term deposits		34,174			49,800
Trade receivables, net		119,203			169,116
Prepaid expenses and other short-term assets		76,206			64,326
Total current assets		1,074,369			767,157
Long-term assets:
Long-term marketable securities		332,329			211,063
Operating lease right-of-use assets		45,390			51,838
Property and equipment, net		28,908			33,964
Intangible assets, net		119			1,263
Goodwill		23,135			23,135
Other assets		16,904			15,490
Total long-term assets		446,785			336,753
Total assets	$	1,521,154		$	1,103,910

Liabilities and stockholders’ equity
Current liabilities:
Trade payables	$	1,489		$	672
Accrued expenses and other short-term liabilities		123,256			125,057
Convertible senior notes, net		251,625			—
Deferred revenues		217,605			181,049
Total current liabilities		593,975			306,778
Long-term liabilities:
Convertible senior notes, net		449,759			250,477
Operating lease liabilities		43,654			51,313
Deferred revenues		1,530			886
Other liabilities		3,676			4,808
Total long-term liabilities		498,619			307,484

Stockholders’ equity:
Share capital
Common stock		112			109
Accumulated other comprehensive loss		(4,381	)		(8,649	)
Additional paid-in capital		1,159,990			1,142,578
Accumulated deficit		(727,161	)		(644,390	)
Total stockholders’ equity		428,560			489,648
Total liabilities and stockholders’ equity	$	1,521,154		$	1,103,910

Varonis Systems, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
	Nine Months Ended September 30,
		2024			2023
	Unaudited
Cash flows from operating activities:
Net loss	$	(82,771	)	$	(100,018	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		8,543			8,736
Stock-based compensation		94,113			108,176
Amortization of deferred commissions		19,906			17,547
Non-cash operating lease costs		7,050			7,087
Amortization of debt issuance costs		1,264			1,133
Amortization of premium and accretion of discount on marketable securities		(11,288	)		(5,557	)
Acquired in-process research and development		6,653			—

Changes in assets and liabilities:
Trade receivables		49,913			24,895
Prepaid expenses and other short-term assets		(10,889	)		(11,118	)
Deferred commissions		(23,846	)		(18,338	)
Other long-term assets		(129	)		(963	)
Trade payables		817			(1,634	)
Accrued expenses and other short-term liabilities		(5,882	)		(17,652	)
Deferred revenues		37,200			33,555
Other long-term liabilities		272			3,120
Net cash provided by operating activities		90,926			48,969

Cash flows from investing activities:
Proceeds from maturities of marketable securities		157,100			28,850
Investment in marketable securities		(576,753	)		(331,651	)
Proceeds from short-term and long-term deposits		25,038			170,925
Investment in short-term and long-term deposits		(9,233	)		(118,605	)
Purchase of in-process research and development		(6,653	)		—
Purchases of property and equipment		(2,342	)		(2,945	)
Net cash used in investing activities		(412,843	)		(253,426	)

Cash flows from financing activities:
Proceeds from issuance of convertible senior notes, net of issuance costs		450,099			—
Purchases of capped calls		(55,522	)		—
Proceeds from employee stock plans		16,082			11,346
Taxes paid related to net share settlement of equity awards		(37,264	)		(19,971	)
Repurchase of common stock		—			(43,522	)
Net cash provided by (used in) financing activities		373,395			(52,147	)
Increase (decrease) in cash and cash equivalents		51,478			(256,604	)
Cash and cash equivalents at beginning of period		230,740			367,800
Cash and cash equivalents at end of period	$	282,218		$	111,196

Varonis Systems, Inc.
Reconciliation of GAAP Measures to non-GAAP
(in thousands, except share and per share data)
	Three Months Ended September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
	Unaudited						Unaudited
Reconciliation to non-GAAP operating income:

GAAP operating loss	$	(23,640	)	$	(29,147	)	$	(100,099	)	$	(111,979	)

Add back:
Stock-based compensation expense		31,931			32,980			94,113			108,176
Payroll tax expenses related to stock-based compensation		401			239			5,412			2,923
Amortization of acquired intangible assets and acquisition-related expenses		381			794			1,143			2,379
Non-GAAP operating income	$	9,073		$	4,866		$	569		$	1,499

Reconciliation to non-GAAP net income:

GAAP net loss	$	(18,333	)	$	(23,017	)	$	(82,771	)	$	(100,018	)

Add back:
Stock-based compensation expense		31,931			32,980			94,113			108,176
Payroll tax expenses related to stock-based compensation		401			239			5,412			2,923
Amortization of acquired intangible assets and acquisition-related expenses		381			794			1,143			2,379
Foreign exchange rate differences, net		(1,052	)		(1,002	)		(2,302	)		(3,206	)
Amortization of debt issuance costs		496			379			1,264			1,133
Non-GAAP net income	$	13,824		$	10,373		$	16,859		$	11,387

GAAP weighted average number of shares used in computing net loss per share of common stock – basic and diluted		112,268,210			109,429,722			111,382,582			109,187,063
Non-GAAP weighted average number of shares used in computing net income per share of common stock – basic		112,268,210			109,429,722			111,382,582			109,187,063
Non-GAAP weighted average number of shares used in computing net income per share of common stock – diluted		134,713,048			126,748,606			134,821,002			126,777,843

GAAP net loss per share of common stock – basic and diluted	$	(0.16	)	$	(0.21	)	$	(0.74	)	$	(0.92	)
Non-GAAP net income per share of common stock – basic	$	0.12		$	0.09		$	0.15		$	0.10
Non-GAAP net income per share of common stock – diluted	$	0.10		$	0.08		$	0.13		$	0.09

Varonis Systems, Inc.
Reconciliation of GAAP Measures to non-GAAP
(in millions)

	Nine Months Ended September 30,
		2024			2023
	Unaudited
Reconciliation to non-GAAP free cash flow:
Net cash provided by operating activities	$	90.9		$	49.0
Purchases of property and equipment		(2.3	)		(3.0	)
Free cash flow	$	88.6		$	46.0

Varonis Systems, Inc.
Reconciliation of GAAP Measures to non-GAAP
(in millions)

	Twelve Months Ended December 31, 2024
	Low			High
Reconciliation to non-GAAP free cash flow:
Net cash provided by operating activities	$	100.0		$	107.0
Purchases of property and equipment		(5.0	)		(7.0	)
Free cash flow	$	95.0		$	100.0

The MIL Network –

January 25, 2025

MIL-OSI: Medallion Financial Corp. Reports 2024 Third Quarter Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) — Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, as well as offers loan products and services through fintech strategic partners, announced today its results for the quarter ended September 30, 2024.

2024 Third Quarter Highlights

Net income was $8.6 million, or $0.37 per share, compared to $11.2 million, or $0.48 per share, in the prior year quarter.
Net interest income grew 8% to $52.7 million from $48.8 million in the prior year quarter.
Net interest margin on gross loans was 8.11%, compared to 8.35% in the prior year quarter, and on net loans it was 8.42%, compared to 8.64% in the prior year quarter.
Loan originations were $275.6 million, compared to $217.4 million in the prior year quarter.
Loans grew 13% to $2.5 billion as of September 30, 2024, compared to $2.2 billion a year ago.
The credit loss provision increased to $20.2 million from $14.5 million in the prior year quarter.
The Company repurchased 122,344 shares of common stock at an average cost of $7.89 per share.
Subsequent to September 30, 2024, the Board of Directors increased the quarterly cash dividend 10% to $0.11 per share.

Executive Commentary – Andrew Murstein, President of Medallion

“We continue to be pleased with our quarterly performance. The earnings were strong despite lower taxi medallion related recoveries and the absence of equity gains, both of which we experienced in the prior year quarter. At $0.37 per share, our earnings included approximately $0.07 per share of additional allowance tied to the growth of our consumer lending segments, which saw recreation and home improvement loans grow 4% and 5% from the previous quarter to a combined $2.4 billion, with over $235 million in originations this quarter. We continue to be comfortable with the overall credit performance of these two consumer segments, which carry weighted average coupons of 14.92% for recreation loans and 9.76% for home improvement loans. During the quarter we originated recreation loans at an average rate of 16.33% and home improvement loans at an average rate of 10.75%.

Our net interest income reached $52.7 million during the quarter, up 6% from just a quarter ago. We remain cautiously optimistic that the solid performance of our loan portfolio will continue. Our net interest margin during the quarter was 8.11%, decreasing only 1 basis point from the prior quarter, as we continue to increase our yield to offset the rise in our average cost of borrowings.

Our total interest income of $76.4 million, net interest income of $52.7 million, and total assets of $2.9 billion were all record highs. Our fintech strategic partnership program at Medallion Bank had its highest volume quarter ever with $40 million of new loans, up from $24 million in the second quarter of this year. As a result, we are optimistic about the quarters ahead and are hopeful to continue delivering meaningful growth in origination volumes in our newest business line.

Lastly, we are pleased to announce that our board of directors has authorized an increase of our quarterly dividend to $0.11 per share beginning with the upcoming payment next month, reflecting our strong financial performance and ongoing commitment to delivering value to our shareholders. This increase underscores our confidence in the Company’s future growth and stability, as well as our focus on returning capital to investors.”

Business Segment Highlights

Recreation Lending Segment

Originations were $139.1 million during the quarter, compared to $92.6 million a year ago.
Recreation loans grew 15% to $1.6 billion as of September 30, 2024, compared to $1.3 billion a year ago.
Recreation loans were 63% of total loans as of September 30, 2024, compared to 61% a year ago.
Net interest income grew 9% to $38.9 million for the quarter, from $35.6 million in the prior year quarter.
The average interest rate was 14.92% at quarter-end, compared to 14.73% a year ago.
Recreation loans 90 days or more past due were $7.5 million, or 0.50% of gross recreation loans, as of September 30, 2024, compared to $5.9 million, or 0.45%, a year ago.
Allowance for credit loss rate was 4.53% as of September 30, 2024, compared to 4.24% a year ago.

Home Improvement Lending Segment

Originations were $96.5 million during the quarter, compared to $79.3 million a year ago.
Home improvement loans grew 8% to $814.1 million as of September 30, 2024, compared to $750.5 million a year ago.
Home improvement loans were 33% of total loans as of September 30, 2024, compared to 34% a year ago.
Net interest income grew 5% to $12.0 million for the quarter, from $11.4 million in the prior year quarter.
The average interest rate was 9.76% at quarter-end, compared to 9.38% a year ago.
Home improvement loans 90 days or more past due were $1.6 million, or 0.19% of gross home improvement loans, as of September 30, 2024, compared to $1.0 million, or 0.13%, a year ago.
Allowance for credit loss rate was 2.42% as of September 30, 2024, compared to 2.31% a year ago.

Commercial Lending Segment

Commercial loans were $110.1 million at September 30, 2024, compared to $100.3 million a year ago.
The average interest rate on the portfolio was 12.90%, compared to 12.91% a year ago.

Taxi Medallion Lending Segment

The Company collected $4.1 million of cash on taxi medallion-related assets during the quarter.
Total net taxi medallion assets declined to $8.8 million (comprised of $1.9 million of loans net of allowance for credit losses and $6.9 million of loan collateral in process of foreclosure), a 46% reduction from a year ago, and represented less than half a percent of the Company’s total assets as of September 30, 2024.

Capital Allocation

Quarterly Dividend

The Board of Directors declared a quarterly dividend of $0.11 per share, payable on November 27, 2024 to shareholders of record at the close of business on November 15, 2024.

Stock Repurchase Plan

During the third quarter, the Company repurchased 122,344 shares of its common stock at an average cost of $7.89 per share, for a total of $1.0 million.
As of September 30, 2024, the Company had $15.4 million remaining under its $40 million share repurchase program.

Conference Call Information

The Company will host a conference call to discuss its third quarter financial results tomorrow, Wednesday, October 30, 2024 at 9:00 a.m. Eastern time.

In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

How to Participate

Date: Wednesday, October 30, 2024
Time: 9:00 a.m. Eastern time
U.S. dial-in number: (833) 816-1412
International dial-in number: (412) 317-0504
Live webcast: Link to Webcast of 3Q24 Earnings Call

A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

Replay Information

The webcast replay will be available at the Company’s IR website until the next quarter’s results are announced.

The conference call replay will be available following the end of the call through Wednesday, November 6.

U.S. dial-in number: (844) 512-2921
International dial-in number: (412) 317-6671
Access ID: 1019 3247

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ:MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2023 Annual Report on Form 10-K.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com

MEDALLION FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in thousands, except share and per share data)	September 30, 2024			December 31, 2023			September 30, 2023
Assets
Cash, cash equivalents, and federal funds sold	$	187,929		$	149,845		$	127,642
Investment and equity securities		66,651			65,712			63,717
Loans		2,485,279			2,215,886			2,203,038
Allowance for credit losses		(96,518	)		(84,235	)		(79,133	)
Net loans receivable		2,388,761			2,131,651			2,123,905
Goodwill and intangible assets, net		170,311			171,394			171,755
Property, equipment, and right-of-use lease asset, net		14,172			14,076			13,278
Accrued interest receivable		14,108			13,538			13,593
Loan collateral in process of foreclosure		8,818			11,772			15,923
Other assets		29,302			29,839			28,814
Total assets	$	2,880,052		$	2,587,827		$	2,558,627
Liabilities
Deposits	$	2,108,132		$	1,866,657		$	1,855,096
Long-term debt		232,037			235,544			218,137
Short-term borrowings		49,000			8,000			18,489
Deferred tax liabilities, net		20,598			21,207			23,131
Operating lease liabilities		5,534			7,019			7,075
Accrued interest payable		6,888			6,822			4,624
Accounts payable and accrued expenses		26,687			30,804			34,813
Total liabilities		2,448,876			2,176,053			2,161,365
Total stockholders’ equity		362,388			342,986			328,474
Non-controlling interest in consolidated subsidiaries		68,788			68,788			68,788
Total equity		431,176			411,774			397,262
Total liabilities and equity	$	2,880,052		$	2,587,827		$	2,558,627
Number of shares outstanding		23,084,277			23,449,646			23,363,731
Book value per share	$	15.70		$	14.63		$	14.06

MEDALLION FINANCIAL CORP.‌
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)‌

	Three Months Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands, except share and per share data)	2024			2023			2024			2023
Total interest income	$	76,409		$	65,886		$	214,183		$	183,455
Total interest expense		23,672			17,102			63,661			44,379
Net interest income		52,737			48,784			150,522			139,076
Provision for credit losses		20,151			14,532			55,929			27,045
Net interest income after provision for credit losses		32,586			34,252			94,593			112,031
Other income (loss)
(Loss) gain on equity investments		(519	)		2,180			3,136			2,189
Gain on sale of loans and taxi medallions		340			1,417			1,170			4,578
Write-down of loan collateral in process of foreclosure		(19	)		(30	)		(19	)		(303	)
Other income		785			739			2,802			1,868
Total other income, net		587			4,306			7,089			8,332
Other expenses
Salaries and employee benefits		9,456			9,630			28,347			27,805
Loan servicing fees		2,790			2,501			7,951			7,084
Collection costs		1,673			1,583			4,799			4,729
Regulatory fees		961			1,021			2,826			2,484
Professional fees		818			1,148			3,434			4,223
Rent expense		664			629			2,019			1,855
Amortization of intangible assets		361			361			1,084			1,084
Other expenses		2,272			2,216			6,755			7,220
Total other expenses		18,995			19,089			57,215			56,484
Income before income taxes		14,178			19,469			44,467			63,879
Income tax provision		4,055			6,727			14,196			18,582
Net income after taxes		10,123			12,742			30,271			45,297
Less: income attributable to the non-controlling interest		1,512			1,512			4,535			4,536
Total net income attributable to Medallion Financial Corp.	$	8,611		$	11,230		$	25,736		$	40,761
Basic net income per share	$	0.38		$	0.50		$	1.14		$	1.81
Diluted net income per share	$	0.37		$	0.48		$	1.09		$	1.77
Weighted average common shares outstanding
Basic		22,490,792			22,596,982			22,576,446			22,469,968
Diluted		23,447,929			23,392,901			23,555,065			23,067,944
Dividends declared per common share	$	0.10		$	0.08		$	0.30		$	0.24

The MIL Network –

January 25, 2025

MIL-OSI: Heartland Financial USA, Inc. (“HTLF”) Reports Quarterly Results as of September 30, 2024

Source: GlobeNewswire (MIL-OSI)

Third Quarter Highlights

Quarterly net income available to common stockholders of $62.1 million or $1.44 per common share
Adjusted earnings available to common stockholders of $50.6 million or $1.17 adjusted diluted earnings per common share (non-GAAP), which excludes:
- Gain on sale, net, of $29.7 million due to the sale of Rocky Mountain Bank branches in Montana.
- Loss on security sales of $9.5 million.
- Loss on fixed assets of $2.9 million due to branch closures and write-downs on properties listed for sale.
Common equity to total assets increased to 11.11%; while the tangible common equity ratio (non-GAAP) improved 86 basis points to 8.14%.
Net interest margin, full tax-equivalent (non-GAAP) increased to 3.78% for the quarter ended September 30, 2024 up from 3.73% for the quarter ended June 30, 2024.
Nonperforming loans were $69.9 million or 0.61% of total loans, a decrease of $33.8 million or 33% from the quarter ended June 30, 2024.
- Charge-offs of $32.1 million, of which the majority have been reserved for in prior periods, were recorded for the third quarter.

	For the Quarter Ended									For the Nine Months Ended September 30,
	9/30/2024			6/30/2024			9/30/2023			2024			2023
Earnings Summary:
Net income/(loss) available to common stockholders (in millions)	$	62.1		$	37.7		$	46.1		$	149.6		$	144.2
Diluted earnings/(loss) per common share		1.44			0.88			1.08			3.47			3.37
Annualized return on average assets		1.38	%		0.84	%		0.94	%		1.10	%		1.00	%
Annualized return on average common equity		12.60			8.14			10.47			10.59			11.28
Annualized return on average tangible common equity (non-GAAP)⁽¹⁾		18.32			12.28			16.32			15.77			17.82
Net interest margin		3.73			3.68			3.14			3.65			3.23
Net interest margin, fully tax-equivalent (non-GAAP)⁽¹⁾		3.78			3.73			3.18			3.69			3.27
Efficiency ratio		48.58			65.69			63.77			58.94			61.86
Adjusted efficiency ratio, fully-tax equivalent (non-GAAP)⁽¹⁾		57.98			57.73			59.95			58.16			58.98

Adjusted Earnings Summary (1):
Adjusted earnings available to common stockholders (in millions)	$	50.6		$	49.6		$	48.1		$	152.7		$	148.3
Adjusted diluted earnings per common share		1.17			1.15			1.12			3.54			3.47
Adjusted annualized return on average assets		1.14	%		1.09	%		0.98	%		1.12	%		1.02	%
Adjusted annualized return on average common equity		10.27			10.71			10.92			10.81			11.60
Adjusted annualized return on average tangible common equity		14.98			16.05			17.02			16.09			18.31

(1) Refer to “Non-GAAP Measures” in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to the financial tables for reconciliations to the most directly comparable GAAP measures.

“HTLF delivered a solid third quarter. Net interest margin increased as we continue to pay down high cost wholesale deposits. Our tangible common equity ratio improved to 8.14%. In July we completed the strategic sale of Rocky Mountain Bank in Montana, resulting in a net gain of $29.7 million. We continue to work closely with our partners at UMB on integration planning for our two companies and we’re excited about closing the transaction, expected in Q1 2025.”

Bruce K. Lee, President and Chief Executive Officer, HTLF

DENVER, Oct. 29, 2024 (GLOBE NEWSWIRE) — Heartland Financial USA, Inc. (NASDAQ: HTLF) today reported the following results for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023:

Net income available to common stockholders of $62.1 million compared to $46.1 million, an increase of $16.1 million or 35%.
Earnings per diluted common share of $1.44 compared to $1.08, an increase of $0.36 or 33%.
Adjusted earnings available to common stockholders⁽¹⁾ of $50.6 million or $1.17 per diluted common share compared to $48.1 million or $1.12 per diluted common share, which excludes:
- Gain on sale, net, of $29.7 million due to the sale of Rocky Mountain Bank branches in Montana.
- Loss on security sales of $9.5 million.
- Loss on fixed assets of $2.9 million due to branch closures and write-downs on properties listed for sale.
Net interest income of $157.9 million compared to $145.8 million, an increase of $12.1 million or 8%.
Annualized return on average assets of 1.38% compared to 0.94%. Adjusted annualized return on average assets⁽¹⁾ of 1.14% compared to 0.98%.
Annualized return on average common equity of 12.60% compared to 10.47%. Adjusted annualized return on average common equity⁽¹⁾ of 10.27% compared to 10.92%.
Annualized return on average tangible common equity⁽¹⁾ of 18.32% compared to 16.32%. Adjusted annualized return on average tangible common equity⁽¹⁾ of 14.98% compared to 17.02%.

Rocky Mountain Bank Sale

HTLF Bank closed on the sale of the Rocky Mountain Bank branches in Montana in mid-July to two purchasers, which included loans of $343.8 million, deposits of $531.9 million and fixed assets of $13.8 million. The gain on sale, net, of $29.7 million was realized in the third quarter of 2024.

Net Interest Income and Net Interest Margin

Net interest margin, expressed as a percentage of average earning assets, was 3.73% (3.78% on a fully tax-equivalent basis, non-GAAP) for the third quarter of 2024 compared to 3.68% (3.73% on a fully tax-equivalent basis, non-GAAP) for the second quarter of 2024, and 3.14% (3.18% on a fully tax-equivalent basis, non-GAAP) for the third quarter of 2023.

Total interest income and average earning asset changes for the third quarter of 2024 compared to the third quarter of 2023 were:

Total interest income was $253.8 million compared to $245.4 million, an increase of $8.4 million or 3%, primarily attributable to an increase in yields on average earning assets. During the third quarter of 2024, HTLF recorded $5.3 million in additional interest income for a security that paid off.
Total interest income on a tax-equivalent basis (non-GAAP) was $255.8 million, an increase of $8.2 million or 3%, from $247.6 million. Subsequent to September 30, 2024, the fair value hedges were terminated in favorable market conditions in early October. HTLF recorded $10.3 million of interest income associated with the fair value hedges in the third quarter of 2024 in comparison to $5.6 million in the third quarter of 2023. As a result of the fair value hedge terminations, no additional interest income will be recorded.
Average earning assets decreased $1.60 billion or 9% to $16.84 billion compared to $18.44 billion, primarily due to the sale of $865.4 million of securities during the fourth quarter of 2023, $108.4 million of securities sold during the second quarter of 2024, and $40.3 million of securities sold during the third quarter of 2024. The proceeds were utilized to pay down high-cost wholesale deposits and borrowings.
The average rate on earning assets increased 71 basis points to 6.04% from 5.33%, primarily due to recent interest rate increases on earning assets.

Total interest expense and average interest-bearing liability changes for the third quarter of 2024 compared to the third quarter of 2023 were:

Total interest expense was $95.9 million, a decrease of $3.8 million from $99.7 million, primarily due to a decrease in average interest-bearing liabilities.
The average interest rate paid on interest-bearing liabilities increased 17 basis points to 3.18% from 3.01%.
Average interest-bearing deposits decreased $1.65 billion or 13% to $11.03 billion from $12.68 billion.
The average interest rate paid on interest-bearing deposits decreased 4 basis points to 2.86% from 2.90%.
Average borrowings and term debt increased $478.2 million to $953.9 million from $475.7 million, and the average interest rate paid on borrowings decreased 40 basis points to 5.39% from 5.78%.

Net interest income changes for the third quarter of 2024 compared to the third quarter of 2023 were:

Net interest income totaled $157.9 million compared to $145.8 million, an increase of $12.1 million or 8%.
Net interest income on a tax-equivalent basis (non-GAAP) totaled $159.9 million compared to $147.9 million, an increase of $12.0 million or 8%.

Noninterest Income and Noninterest Expense

Total noninterest income was $19.0 million during the third quarter of 2024 compared to $28.4 million during the third quarter of 2023, a decrease of $9.4 million or 33%. Significant changes within the noninterest income category for the third quarter of 2024 compared to the third quarter of 2023 were:

Service charges and fees decreased $1.5 million or 8% to $17.1 million from $18.6 million, primarily attributable to a decrease in consumer NSF and overdraft fees. In the fourth quarter of 2023, HTLF instituted a new fee policy across our single charter customer base in response to industry changes related to consumer overdraft fees.
Net security losses increased $9.4 million to $9.5 million compared to net security losses of $114,000.
Net gains on sales of loans held for sale decreased to $0 from $905,000, due to HTLF ceasing originations of residential mortgage loans to be sold to the secondary market.
Other noninterest income increased $957,000 to $1.6 million from $619,000, primarily due to an increase in deferred compensation income of $1.0 million to $1.5 million from $433,000.

Total noninterest expense was $85.9 million during the third quarter of 2024 compared to $111.1 million during the third quarter of 2023, a decrease of $25.1 million or 23%. Significant changes within the noninterest expense category for the third quarter of 2024 compared to the third quarter of 2023 were:

Salaries and employee benefits totaled $62.7 million compared to $62.3 million, an increase of $480,000 or 1%. The increase was attributable to higher benefit costs including incentive compensation and benefit expenses partially offset by a reduction of full-time equivalent employees. Full-time equivalent employees totaled 1,725 compared to 1,965, a decrease of 240 or 12%.
Professional fees totaled $17.4 million compared to $13.6 million, an increase of $3.8 million or 28%, primarily due to an increase legal expenses, including those associated with special asset loans.
Gain on sale of assets, net, totaled $26.4 million compared to a loss on sale of assets of $108,000. As discussed earlier, Rocky Mountain Bank, a division of HTLF Bank, was sold during the third quarter of 2024 which generated a gain on sale, net, of $29.7 million.

The effective tax rate was 24.25% for the third quarter of 2024 compared to 21.89% for third quarter of 2023. The following items impacted the third quarter 2024 and 2023 tax calculations:

Various tax credits of $629,000 compared to $1.6 million.
Tax-exempt interest income as a percentage of pre-tax income of 8.92% compared to 13.14%.
Tax benefit of $140,000 compared to a tax expense of $41,000 resulting from the vesting of restricted stock units.
Tax expense of $1.1 million compared to $1.6 million resulting from the disallowed interest expense related to tax-exempt loans and securities.

Total Assets, Total Loans and Total Deposits

Total assets were $18.27 billion at September 30, 2024, compared to $18.81 billion at June 30, 2024, and $19.41 billion at December 31, 2023. Total assets decreased $540.1 million or 3% during the third quarter of 2024 and $1.14 billion or 6% since year-end 2023. Securities represented 27% and 29% of total assets at September 30, 2024, and December 31, 2023, respectively.

Total loans held to maturity were $11.44 billion at September 30, 2024, compared to $11.61 billion at June 30, 2024, and $12.07 billion at December 31, 2023. Loans decreased $167.4 million or 1% during the third quarter of 2024 and $627.7 million or 5% since year-end 2023. Excluding the impact of Rocky Mountain Bank, loans held to maturity decreased $172.4 million or 1% during the third quarter of 2024 and decreased $284.0 million or 2% since year-end 2023.

Significant changes by loan category at September 30, 2024 compared to June 30, 2024 included:

Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $262.7 million or 4% to $5.99 billion compared to $6.26 billion. Excluding the impact of Rocky Mountain Bank, commercial and business lending decreased $119.4 million or 2%.
Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, decreased $3.3 million, or less than 1%, to $3.58 billion compared to $3.58 billion. Excluding the impact of Rocky Mountain Bank, commercial real estate lending increased $67.0 million or 2%.
Agricultural and agricultural real estate loans decreased $167.2 million or 19% to $701.2 million compared to $868.4 million. Excluding the impact of Rocky Mountain Bank, agricultural and agricultural real estate loans decreased $99.9 million or 12%.
Residential mortgage loans decreased $56.7 million or 7% to $708.0 million compared to $764.7 million. Excluding the impact of Rocky Mountain Bank, residential mortgage loans decreased $25.7 million or 3%.

Significant changes by loan category at September 30, 2024 compared to December 31, 2023 included:

Commercial and business lending, which includes commercial and industrial, PPP and owner occupied commercial real estate loans, decreased $298.6 million or 5% to $5.99 billion compared to $6.29 billion. Excluding the Rocky Mountain Bank loans sold of $143.3 million, commercial and business lending decreased $155.3 million or 2%.
Commercial real estate lending, which includes non-owner occupied commercial real estate and construction loans, increased $9.9 million or less than 1% to $3.58 billion compared to $3.57 billion. Excluding the Rocky Mountain Bank loans sold of $70.3 million, commercial real estate lending increased $80.2 million or 2%.
Agricultural and agricultural real estate loans decreased $218.0 million or 24% to $701.2 million compared to $919.2 million. Excluding the Rocky Mountain Bank loans sold of $67.3 million, agricultural and agricultural real estate loans decreased $150.7 million or 16%.
Residential mortgage loans decreased $89.8 million or 11% to $708.0 million compared to $797.8 million. Excluding the Rocky Mountain Bank loans sold of $31.0 million, residential mortgage loans decreased $58.9 million or 7%.

Total deposits were $14.95 billion as of September 30, 2024, compared to $14.96 billion as of June 30, 2024, a decrease of $3.4 million or less than 1%. Total deposits were $14.95 billion as of September 30, 2024, compared to $16.20 billion at December 31, 2023, which was a decrease of $1.25 billion or 8%. Excluding the impact of Rocky Mountain Bank, deposits decreased $9.8 million or less than 1% during the third quarter of 2024 and decreased $716.6 million or 4% since year-end 2023.

Total customer deposits were $14.35 billion as of September 30, 2024, compared to $14.13 billion at June 30, 2024, an increase of $217.6 million or 2%. Excluding the impact of Rocky Mountain Bank, customer deposits increased $211.2 million or 1%. Significant customer deposit changes by category at September 30, 2024, compared to June 30, 2024, included:

Customer demand deposits decreased $367.6 million or 8% to $4.01 billion compared to $4.38 billion. Excluding the impact of Rocky Mountain Bank, customer demand deposits decreased $235.9 million or 6%.
Customer savings deposits increased $270.0 million or 3% to $8.71 billion compared to $8.44 billion. Excluding the impact of Rocky Mountain Bank, customer savings deposits increased $554.4 million or 7%.
Customer time deposits decreased $223.1 million or 12% to $1.63 billion compared to $1.85 billion. Excluding the impact of Rocky Mountain Bank, customer time deposits decreased $107.3 million or 6%.

Total customer deposits were $14.35 billion as of September 30, 2024, compared to $14.86 billion at December 31, 2023, a decrease of $505.1 million or 3%. Excluding the Rocky Mountain Bank customer deposits sold of $531.9 million, customer deposits increased $26.7 million. Significant customer deposit changes by category at September 30, 2024, compared to December 31, 2023, included:

Customer demand deposits decreased $491.1 million or 11% to $4.01 billion compared to $4.50 billion. Excluding the Rocky Mountain Bank customer demand deposits sold of $131.7 million, customer demand deposits decreased $359.3 million or 8%.
Customer savings deposits increased $302.0 million or 4% to $8.71 billion compared to $8.41 billion. Excluding the Rocky Mountain Bank customer savings deposits sold of $284.3 million, customer savings deposits increased $586.3 million or 7%.
Customer time deposits decreased $316.0 million or 16% to $1.63 billion compared to $1.94 billion. Excluding the Rocky Mountain Bank customer time deposits sold of $115.8 million, customer time deposits decreased $200.2 million or 10%.

Total wholesale and institutional deposits were $601.9 million as of September 30, 2024, a decrease of $221.0 million or 27% from $822.9 million at June 30, 2024. Significant wholesale and institutional deposit changes by category at September 30, 2024 compared to June 30, 2024 included:

Wholesale and institutional savings deposits decreased $105.7 million or 33% to $213.0 million compared to $318.6 million.
Wholesale time deposits decreased $115.3 million or 23% to $389.0 million compared to $504.3 million.

Total wholesale and institutional deposits were $601.9 million as of September 30, 2024, which was a decrease of $743.4 million or 55% from $1.35 billion at December 31, 2023. Significant wholesale and institutional deposit changes by category at September 30, 2024 compared to December 31, 2023 included:

Wholesale and institutional savings deposits decreased $181.4 million or 46% to $213.0 million compared to $394.4 million.
Wholesale time deposits decreased $562.0 million or 59% to $389.0 million compared to $950.9 million.

Provision and Allowance

Provision and Allowance for Credit Losses for Loans
Provision for credit losses for loans for the third quarter of 2024 was $8.9 million, an increase of $6.2 million from $2.7 million recorded in the third quarter of 2023.

The allowance for credit losses for loans totaled $106.8 million at September 30, 2024 and $122.6 million at December 31, 2023. The following items impacted the allowance for credit losses for loans at September 30, 2024:

Provision expense for the nine months ended September 30, 2024, totaled $22.3 million. Provision expense was primarily impacted in the third quarter of 2024 by a nonperforming food manufacturing syndication loan currently in bankruptcy proceedings. HTLF recorded a charge-off of $19.2 million for this credit during the third quarter of 2024, of which $10.0 million was reserved for in a prior period.
Net charge-offs of $38.0 million, of which the majority have been reserved for in prior periods, were recorded for the first nine months of 2024.

Provision and Allowance for Credit Losses for Unfunded Commitments
The allowance for unfunded commitments decreased $6.0 million or 36% to $10.5 million at September 30, 2024, from $16.5 million at December 31, 2023. The following impacted HTLF’s allowance for credit losses for unfunded commitments during 2024:

Provision benefit for the nine months ended September 30, 2024, totaled $6.0 million.
Reduction of $82.9 million in unfunded commitments for construction loans, which carry the highest loss rate.
Total unfunded commitments decreased $684.5 million or 15% to $3.94 billion at September 30, 2024 compared to $4.63 billion at December 31, 2023.

Total Provision and Allowance for Lending Related Credit Losses
The total provision expense for lending related credit losses was $6.3 million for the third quarter of 2024 compared to $1.5 million for the third quarter of 2023. The total allowance for lending related credit losses was $117.3 million or 1.02% of total loans at September 30, 2024, compared to $139.0 million or 1.15% of total loans as of December 31, 2023.

Nonperforming Assets

Nonperforming assets were $76.8 million or 0.42% of total assets at September 30, 2024, compared to $110.5 million or 0.57% of total assets at December 31, 2023. Nonperforming assets were reduced by charge-offs of $32.1 million and the return to performing status of a $10.4 million owner occupied commercial real estate loan relationship. The reduction was partially offset by the addition of a $10.1 million non-owner commercial real estate loan relationship. Nonperforming loans were $69.9 million or 0.61% of total loans at September 30, 2024, compared to $97.9 million or 0.81% of total loans at December 31, 2023. At September 30, 2024, loans delinquent 30-89 days were 0.26% of total loans compared to 0.09% of total loans at December 31, 2023. The increase in the 30-89 day delinquencies was due to a single $12.8 million real estate construction loan. Other real estate owned, net, decreased $5.7 million or 46% to $6.8 million at September 30, 2024 from $12.5 million at December 31, 2023.

Non-GAAP Financial Measures

This earnings release contains references to financial measures which are not defined by generally accepted accounting principles (“GAAP”). Management believes the non-GAAP measures are helpful for investors to analyze and evaluate the company’s financial condition and operating results. However, these non-GAAP measures have inherent limitations and should not be considered a substitute for operating results determined in accordance with GAAP. Additionally, because non-GAAP measures are not standardized, it may not be possible to compare the non-GAAP measures in this earnings release with other companies’ non-GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure may be found in the financial tables in this earnings release.

Below are the non-GAAP measures included in this earnings release, management’s reason for including each measure and the method of calculating each measure:

Adjusted earnings available to common stockholders and adjusted diluted earnings per common share, adjust net income for the gain/loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes these measures enhance the comparability net income available to common stockholders as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
Adjusted annualized return on average assets, adjusts net income for the gain/loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
Annualized net interest margin, fully tax-equivalent, adjusts net interest income for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources.
Adjusted efficiency ratio, fully tax equivalent, expresses noninterest expenses as a percentage of fully tax-equivalent net interest income and noninterest income. This efficiency ratio is presented on a tax-equivalent basis which adjusts net interest income and noninterest expenses for the tax favored status of certain loans, securities, and tax credit projects. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results as it enhances the comparability of income and expenses arising from taxable and nontaxable sources and excludes specific items as noted in reconciliation contained in this earnings release.
Net interest income, fully tax equivalent, is net income adjusted for the tax-favored status of certain loans and securities. Management believes this measure enhances the comparability of net interest income arising from taxable and tax-exempt sources. Net interest margin, fully tax equivalent, is net interest income adjusted for the tax-favored status of certain loans and securities divided by average earning assets.
Tangible book value per common share is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by common shares outstanding, net of treasury. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
Tangible common equity ratio is total common equity less goodwill and core deposit and customer relationship intangibles, net, divided by total assets less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate financial condition and capital strength.
Adjusted annualized return on average common equity, adjusts net income for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
Annualized return on average tangible common equity is net income excluding intangible amortization calculated as (1) net income excluding tax-effected core deposit and customer relationship intangibles amortization, divided by (2) average common equity less goodwill and core deposit and customer relationship intangibles, net. This measure is included as it is considered to be a critical metric to analyze and evaluate use of equity, financial condition and capital strength.
Adjusted annualized return on average tangible common equity, adjusts net income available to common stockholders for the loss from sale of securities, and other non-operating expenses as well as the tax effect of those transactions. Management believes this measure enhances the comparability of annualized return on average assets as it reflects adjustments commonly made by management, investors and analysts to evaluate the ongoing operations and enhance comparability with the results of prior periods.
Annualized ratio of core expenses to average assets adjusts noninterest expenses to exclude specific items noted in the reconciliation. Management includes this measure as it is considered to be a critical metric to analyze and evaluate controllable expenses related to primary business operations.

About HTLF

Heartland Financial USA, Inc., is a Denver, Colorado-based bank holding company operating under the brand name HTLF, with assets of $18.27 billion as of September 30, 2024. HTLF’s banks serve customers in the West, Southwest and Midwest regions. HTLF is committed to serving the banking needs of privately owned businesses, their owners, executives and employees. Our core commercial business is supported by a strong retail banking operation, in addition to a diversified line of financial services including treasury management, wealth management and investments. Additional information is available at www.htlf.com.

Safe Harbor Statement

This release (including any information incorporated herein by reference), and future oral and written statements of the company and its management, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, financial condition, results of operations, plans, objectives and future performance of HTLF.

Any statements about the company’s expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. Forward-looking statements may include information about possible or assumed future results of the company’s operations or performance. These forward-looking statements are generally identified by the use of the words such as “believe”, “expect”, “intent”, “anticipate”, “plan”, “intend”, “estimate”, “project”, “may”, “will”, “would”, “could”, “should”, “may”, “view”, “opportunity”, “potential”, or similar or negative expressions of these words or phrases that are used in this release, and future oral and written statements of the company and its management. Although the company may make these statements based on management’s experience, beliefs, expectations, assumptions and best estimate of future events, the ability of the company to predict results or the actual effect or outcomes of plans or strategies is inherently uncertain, and there may be events or factors that management has not anticipated. Therefore, the accuracy and achievement of such forward-looking statements and estimates are subject to a number of risks, many of which are beyond the ability of management to control or predict, that could cause actual results to differ materially from those in its forward-looking statements. These factors, which the company currently believes could have a material effect on its operations and future prospects, are detailed below and in the risk factors in HTLF’s reports filed with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section under Item 1A of Part I of the company’s Annual Report on Form 10-K for the year ended December 31, 2023 and updates in HTLF’s Forms 10-Q filed thereafter, and include, among others:

Economic and Market Conditions Risks, including risks related to the deterioration of the U.S. economy in general and in the local economies in which HTLF conducts its operations and future civil unrest, natural disasters, pandemics and governmental measures addressing them, climate change and climate-related regulations, persistent inflation, higher interest rates, supply chain issues, labor shortages, terrorist threats or acts of war;
Credit Risks, including risks of increasing credit losses due to deterioration in the financial condition of HTLF’s borrowers, changes in asset and collateral values due to climate and other borrower industry risks, which may impact the provision for credit losses and net charge-offs;
Liquidity and Interest Rate Risks, including the impact of capital market conditions, rising interest rates and changes in monetary policy on our borrowings and net interest income;
Risks related to the planned merger with UMB Financial Corporation (the “Merger”), the fluctuation of the market value of the merger consideration, risks related to combining our businesses, including expenses related to the Merger and integration of the combined entity, risks that the Merger may not occur, and the risk of litigation related to the Merger;
Operational Risks, including processing, information systems, cybersecurity, vendor, business interruption, and fraud risks;
Strategic and External Risks, including economic, political, and competitive forces impacting our business;
Legal, Compliance and Reputational Risks, including regulatory and litigation risks; and
Risks of Owning Stock in HTLF, including stock price volatility and dilution as a result of future equity offerings and acquisitions.

There can be no assurance that other factors not currently anticipated by HTLF will not materially and adversely affect HTLF’s business, financial condition and results of operations. Additionally, all statements in this release, including forward-looking statements speak only as of the date they are made. HTLF does not undertake and specifically disclaims any obligation to publicly release the results of any revisions which may be made to or correct or update any forward-looking statement to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events or to otherwise update any statement in light of new information or future events. Further information concerning HTLF and its business, including additional factors that could materially affect HTLF’s financial results, is included in HTLF’s filings with the SEC.

-FINANCIAL TABLES FOLLOW-

CONTACT:

Kevin L. Thompson

Executive Vice President

Chief Financial Officer

(563) 589-1994

kthompson@htlf.com

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
		2024			2023			2024			2023
Interest Income
Interest and fees on loans	$	192,506		$	182,394		$	587,328		$	505,136
Interest on securities:
Taxable		51,116			54,800			145,511			168,948
Nontaxable		5,979			6,584			18,062			18,990
Interest on federal funds sold		—			3			—			3
Interest on deposits with other banks and short-term investments		4,193			1,651			10,244			4,833
Total Interest Income		253,794			245,432			761,145			697,910
Interest Expense
Interest on deposits		82,976			92,744			247,609			231,617
Interest on borrowings		7,378			1,167			25,727			4,437
Interest on term debt		5,543			5,765			16,956			16,756
Total Interest Expense		95,897			99,676			290,292			252,810
Net Interest Income		157,897			145,756			470,853			445,100
Provision for credit losses		6,276			1,516			16,270			9,969
Net Interest Income After Provision for Credit Losses		151,621			144,240			454,583			435,131
Noninterest Income
Service charges and fees		17,100			18,553			51,127			55,316
Loan servicing income		111			278			349			1,403
Trust fees		5,272			4,734			15,847			15,810
Brokerage and insurance commissions		853			692			2,501			2,065
Capital markets fees		2,116			1,845			5,003			8,331
Securities gains (losses), net		(9,520	)		(114	)		(19,573	)		(1,532	)
Unrealized gain on equity securities, net		377			13			605			165
Net gains on sale of loans held for sale		—			905			104			3,786
Income on bank owned life insurance		1,107			858			3,610			3,042
Other noninterest income		1,576			619			5,289			2,489
Total Noninterest Income		18,992			28,383			64,862			90,875
Noninterest Expense
Salaries and employee benefits		62,742			62,262			191,817			186,510
Occupancy		6,318			6,438			19,843			20,338
Furniture and equipment		2,062			2,720			6,554			8,698
Professional fees		17,448			13,616			48,351			41,607
FDIC insurance assessments		3,035			3,313			11,344			9,627
Advertising		1,937			1,633			4,663			6,670
Core deposit intangibles amortization		1,345			1,625			4,258			5,128
Other real estate and loan collection expenses, net		395			481			1,422			984
(Gain) loss on sales/valuations of assets, net		(26,419	)		108			(26,012	)		(2,149	)
Acquisition, integration and restructuring costs		2,026			2,429			9,374			5,994
Partnership investment in tax credit projects		222			1,136			938			1,828
Other noninterest expense		14,816			15,292			43,214			46,307
Total Noninterest Expense		85,927			111,053			315,766			331,542
Income Before Income Taxes		84,686			61,570			203,679			194,464
Income taxes		20,533			13,479			48,077			44,181
Net Income/(Loss)		64,153			48,091			155,602			150,283
Preferred dividends		(2,013	)		(2,013	)		(6,038	)		(6,038	)
Net Income/(Loss) Available to Common Stockholders	$	62,140		$	46,078		$	149,564		$	144,245
Earnings/(loss) per common share-diluted	$	1.44		$	1.08		$	3.47		$	3.37
Weighted average shares outstanding-diluted		43,195,257			42,812,563			43,080,422			42,769,872

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Interest Income
Interest and fees on loans	$	192,506		$	199,161		$	195,661		$	192,861		$	182,394
Interest on securities:
Taxable		51,116			47,381			47,014			54,573			54,800
Nontaxable		5,979			6,042			6,041			6,278			6,584
Interest on federal funds sold		—			—			—			—			3
Interest on deposits with other banks and short-term investments		4,193			3,045			3,006			2,174			1,651
Total Interest Income		253,794			255,629			251,722			255,886			245,432
Interest Expense
Interest on deposits		82,976			80,499			84,134			88,071			92,744
Interest on borrowings		7,378			10,825			7,524			5,874			1,167
Interest on term debt		5,543			5,564			5,849			5,804			5,765
Total Interest Expense		95,897			96,888			97,507			99,749			99,676
Net Interest Income		157,897			158,741			154,215			156,137			145,756
Provision for credit losses		6,276			9,008			986			11,738			1,516
Net Interest Income After Provision for Credit Losses		151,621			149,733			153,229			144,399			144,240
Noninterest Income
Service charges and fees		17,100			16,964			17,063			18,708			18,553
Loan servicing income		111			107			131			158			278
Trust fees		5,272			5,532			5,043			4,905			4,734
Brokerage and insurance commissions		853			894			754			729			692
Capital markets fees		2,116			1,996			891			1,676			1,845
Securities gains (losses), net		(9,520	)		(10,111	)		58			(140,007	)		(114	)
Unrealized gain on equity securities, net		377			133			95			75			13
Net gains on sale of loans held for sale		—			—			104			94			905
Income on bank owned life insurance		1,107			1,326			1,177			729			858
Other noninterest income		1,576			1,366			2,347			1,132			619
Total Noninterest Income		18,992			18,207			27,663			(111,801	)		28,383
Noninterest Expense
Salaries and employee benefits		62,742			65,120			63,955			64,766			62,262
Occupancy		6,318			6,262			7,263			6,509			6,438
Furniture and equipment		2,062			2,155			2,337			2,901			2,720
Professional fees		17,448			15,372			15,531			17,060			13,616
FDIC insurance assessments		3,035			3,340			4,969			10,313			3,313
Advertising		1,937			1,368			1,358			1,677			1,633
Core deposit intangibles amortization		1,345			1,421			1,492			1,611			1,625
Other real estate and loan collection expenses, net		395			515			512			505			481
(Gain) loss on sales/valuations of assets, net		(26,419	)		193			214			2,072			108
Acquisition, integration and restructuring costs		2,026			5,973			1,375			4,365			2,429
Partnership investment in tax credit projects		222			222			494			3,573			1,136
Other noninterest expense		14,816			14,303			14,095			14,933			15,292
Total Noninterest Expense		85,927			116,244			113,595			130,285			111,053
Income Before Income Taxes		84,686			51,696			67,297			(97,687	)		61,570
Income taxes		20,533			11,954			15,590			(27,324	)		13,479
Net Income/(Loss)		64,153			39,742			51,707			(70,363	)		48,091
Preferred dividends		(2,013	)		(2,012	)		(2,013	)		(2,012	)		(2,013	)
Net Income/(Loss) Available to Common Stockholders	$	62,140		$	37,730		$	49,694		$	(72,375	)	$	46,078
Earnings/(loss) per common share-diluted	$	1.44		$	0.88		$	1.16		$	(1.69	)	$	1.08
Weighted average shares outstanding-diluted		43,195,257			43,060,354			42,915,768			42,838,405			42,812,563

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Assets
Cash and due from banks	$	228,719		$	226,735		$	208,176		$	275,554		$	248,756
Interest-bearing deposits with other banks and short-term investments		359,675			147,211			236,190			47,459			99,239
Cash and cash equivalents		588,394			373,946			444,366			323,013			347,995
Time deposits in other financial institutions		1,050			1,340			1,240			1,240			1,490
Securities:
Carried at fair value		4,057,335			4,185,054			4,418,222			4,646,891			5,482,687
Held to maturity, at cost		839,623			842,980			841,055			838,241			835,468
Other investments, at cost		69,511			70,684			68,524			91,277			90,001
Loans held for sale		—			348,761			352,744			5,071			6,262
Loans:
Held to maturity		11,440,917			11,608,309			11,644,641			12,068,645			11,872,436
Allowance for credit losses		(106,797	)		(126,861	)		(123,934	)		(122,566	)		(110,208	)
Loans, net		11,334,120			11,481,448			11,520,707			11,946,079			11,762,228
Premises, furniture and equipment, net		155,140			175,953			176,582			181,070			187,436
Goodwill		576,005			576,005			576,005			576,005			576,005
Core deposit intangibles, net		14,157			15,501			16,923			18,415			20,026
Cash surrender value on life insurance		199,998			199,036			197,671			197,085			196,694
Other real estate, net		6,805			7,533			2,590			12,548			14,362
Other assets		430,155			534,429			516,198			574,772			609,139
Total Assets	$	18,272,293		$	18,812,670		$	19,132,827		$	19,411,707		$	20,129,793
Liabilities and Equity
Liabilities
Deposits:
Demand	$	4,009,218		$	4,244,169		$	4,264,390		$	4,500,304		$	4,792,813
Savings		8,926,192			8,470,416			8,669,221			8,805,597			8,754,911
Time		2,017,806			2,242,005			2,368,555			2,895,813			3,553,269
Total deposits		14,953,216			14,956,590			15,302,166			16,201,714			17,100,993
Deposits held for sale		—			538,308			596,328			—			—
Borrowings		546,219			694,909			650,033			622,255			392,634
Term debt		373,324			372,988			372,652			372,396			372,059
Accrued expenses and other liabilities		259,161			222,025			232,815			282,225			438,577
Total Liabilities		16,131,920			16,784,820			17,153,994			17,478,590			18,304,263
Stockholders’ Equity
Preferred equity		110,705			110,705			110,705			110,705			110,705
Common stock		42,884			42,852			42,784			42,688			42,656
Capital surplus		1,098,837			1,096,619			1,093,207			1,090,740			1,088,267
Retained earnings		1,252,247			1,203,092			1,178,330			1,141,501			1,226,740
Accumulated other comprehensive income/(loss)		(364,300	)		(425,418	)		(446,193	)		(452,517	)		(642,838	)
Total Equity		2,140,373			2,027,850			1,978,833			1,933,117			1,825,530
Total Liabilities and Equity	$	18,272,293		$	18,812,670		$	19,132,827		$	19,411,707		$	20,129,793

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Average Balances
Assets	$	18,439,910		$	19,043,362		$	19,296,638		$	19,667,825		$	20,207,920
Loans, net of unearned		11,584,999			12,010,289			12,021,930			11,938,272			11,800,064
Total deposits		15,148,944			15,562,920			16,042,402			16,709,394			17,507,813
Customer deposits		14,347,965			14,768,407			14,816,652			14,969,948			14,699,235
Earning assets		16,838,131			17,331,435			17,597,068			17,853,957			18,439,010
Interest-bearing liabilities		11,986,220			12,461,957			12,607,745			12,721,680			13,158,631
Common equity		1,962,334			1,863,236			1,832,959			1,729,086			1,746,818
Total stockholders’ equity		2,073,039			1,973,941			1,943,664			1,839,791			1,857,523
Tangible common equity (non-GAAP)⁽¹⁾		1,371,515			1,271,046			1,239,313			1,133,888			1,149,992

Key Performance Ratios
Annualized return on average assets		1.38	%		0.84	%		1.08	%	(1.42		)%		0.94	%
Adjusted annualized return on average assets (non-GAAP)⁽¹⁾		1.14			1.09			1.13			0.96			0.98
Annualized return on average common equity (GAAP)		12.60			8.14			10.90			(16.61	)		10.47
Adjusted annualized return on average common equity (non-GAAP)⁽¹⁾		10.27			10.71			11.50			10.46			10.92
Annualized return on average tangible common equity (non-GAAP)⁽¹⁾		18.32			12.28			16.49			(24.89	)		16.32
Adjusted annualized return on average tangible common equity (non-GAAP)⁽¹⁾		14.98			16.05			17.38			16.38			17.02
Annualized ratio of net charge-offs/(recoveries) to average loans		0.99			0.23			0.08			0.01			0.12
Annualized net interest margin (GAAP)		3.73			3.68			3.52			3.47			3.14
Annualized net interest margin, fully tax-equivalent (non-GAAP)⁽¹⁾		3.78			3.73			3.57			3.52			3.18
Annualized cost of deposits		2.18			2.08			2.11			2.09			2.10
Efficiency ratio (GAAP)		48.58			65.69			62.46			293.86			63.77
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)⁽¹⁾		57.98			57.73			58.77			59.31			59.95
Annualized ratio of total noninterest expenses to average assets (GAAP)		1.85			2.46			2.37			2.63			2.18
Annualized ratio of core expenses to average assets (non-GAAP)⁽¹⁾		2.35			2.30			2.25			2.23			2.08

	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
		2024			2023			2024			2023
Average Balances
Assets	$	18,439,910		$	20,207,920		$	18,924,862		$	20,182,808
Loans, net of unearned		11,584,999			11,800,064			11,871,358			11,602,741
Total deposits		15,148,944			17,507,813			15,583,165			17,567,614
Customer deposits		14,347,965			14,699,235			14,642,347			14,778,030
Earning assets		16,838,131			18,439,010			17,254,023			18,451,907
Interest-bearing liabilities		11,986,220			13,158,631			12,350,640			12,985,665
Common equity		1,962,334			1,746,818			1,886,454			1,710,230
Total stockholders’ equity		2,073,039			1,857,523			1,997,159			1,820,935
Tangible common equity (non-GAAP)(1)		1,371,515			1,149,992			1,294,241			1,111,724

Key Performance Ratios
Annualized return on average assets		1.38	%		0.94	%		1.10	%		1.00	%
Adjusted annualized return on average assets (non-GAAP)⁽¹⁾		1.14			0.98			1.12			1.02
Annualized return on average common equity (GAAP)		12.60			10.47			10.59			11.28
Adjusted annualized return on average common equity (non-GAAP)⁽¹⁾		10.27			10.92			10.81			11.60
Annualized return on average tangible common equity (non-GAAP)⁽¹⁾		18.32			16.32			15.77			17.82
Adjusted annualized return on average tangible common equity (non-GAAP)⁽¹⁾		14.98			17.02			16.09			18.31
Annualized ratio of net charge-offs/(recoveries) to average loans		0.99			0.12			0.43			0.14
Annualized net interest margin (GAAP)		3.73			3.14			3.65			3.23
Annualized net interest margin, fully tax-equivalent (non-GAAP)⁽¹⁾		3.78			3.18			3.69			3.27
Annualized cost of deposits		2.18			2.10			2.12			1.76
Efficiency ratio (GAAP)		48.58			63.77			58.94			61.86
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)⁽¹⁾		57.98			59.95			58.16			58.98
Annualized ratio of total noninterest expenses to average assets (GAAP)		1.85			2.18			2.23			2.20
Annualized ratio of core expenses to average assets (non-GAAP)⁽¹⁾		2.35			2.08			2.30			2.12

(1) Refer to “Non-GAAP Measures” in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE AND FULL TIME EQUIVALENT EMPLOYEE DATA
	As of and for the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Common Share Data
Book value per common share	$	47.33		$	44.74		$	43.66		$	42.69		$	40.20
Tangible book value per common share (non-GAAP)⁽¹⁾		33.57			30.94			29.81			28.77			26.23
ASC 320 effect on book value per common share		(8.78	)		(10.82	)		(11.18	)		(11.00	)		(16.27	)

Common shares outstanding, net of treasury stock		42,883,865			42,852,180			42,783,670			42,688,008			42,656,303

Capital Ratios
Common equity to total assets		11.11	%		10.19	%		9.76	%		9.39	%		8.52	%
Tangible common equity ratio (non-GAAP)⁽¹⁾		8.14			7.28			6.88			6.53			5.73
Tier 1 leverage ratio		10.77			10.13			9.84			9.44			9.59
Common equity tier 1 ratio⁽²⁾		12.66			11.68			11.40			10.97			11.37
Total risk based capital ratio⁽²⁾		16.34			15.32			14.99			14.53			14.90

Other Selected Trend Information
Effective tax rate		24.25	%		23.12	%		23.17	%		27.97	%		21.89	%
Full time equivalent employees		1,725			1,843			1,888			1,970			1,965

Loans Held to Maturity
Commercial and industrial	$	3,503,093		$	3,541,239		$	3,545,051		$	3,652,047		$	3,591,809
Paycheck Protection Program (“PPP”)		1,582			1,864			2,172			2,777			3,750
Owner occupied commercial real estate		2,489,697			2,555,964			2,545,033			2,638,175			2,429,659
Commercial and business lending		5,994,372			6,099,067			6,092,256			6,292,999			6,025,218
Non-owner occupied commercial real estate		2,455,396			2,434,258			2,495,068			2,553,711			2,656,358
Real estate construction		1,119,922			1,082,726			1,041,583			1,011,716			1,029,554
Commercial real estate lending		3,575,318			3,516,984			3,536,651			3,565,427			3,685,912
Total commercial lending		9,569,690			9,616,051			9,628,907			9,858,426			9,711,130
Agricultural and agricultural real estate		701,211			802,958			809,876			919,184			842,116
Residential mortgage		707,984			733,401			756,021			797,829			813,803
Consumer		462,032			455,899			449,837			493,206			505,387
Total loans held to maturity	$	11,440,917		$	11,608,309		$	11,644,641		$	12,068,645		$	11,872,436

Total unfunded loan commitments	$	3,941,268		$	4,381,565		$	4,537,718		$	4,625,768		$	4,813,798

Deposits
Demand-customer	$	4,009,218		$	4,244,169		$	4,264,390		$	4,500,304		$	4,792,813
Savings-customer		8,713,228			8,151,794			8,269,956			8,411,240			8,190,430
Savings-wholesale and institutional		212,964			318,622			399,265			394,357			564,481
Total savings		8,926,192			8,470,416			8,669,221			8,805,597			8,754,911
Time-customer		1,628,856			1,737,723			1,734,971			1,944,884			1,814,335
Time-wholesale		388,950			504,282			633,584			950,929			1,738,934
Total time		2,017,806			2,242,005			2,368,555			2,895,813			3,553,269
Total deposits	$	14,953,216		$	14,956,590		$	15,302,166		$	16,201,714		$	17,100,993

Total customer deposits	$	14,351,302		$	14,133,686		$	14,269,317		$	14,856,428		$	14,797,578
Total wholesale and institutional deposits		601,914			822,904			1,032,849			1,345,286			2,303,415
Total deposits	$	14,953,216		$	14,956,590		$	15,302,166		$	16,201,714		$	17,100,993

(1) Refer to “Non-GAAP Measures” in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.
(2) September 30, 2024 calculation is preliminary.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	As of and for the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Allowance for Credit Losses-Loans
Balance, beginning of period	$	126,861		$	123,934		$	122,566		$	110,208		$	111,198
Provision for credit losses		8,871			9,737			3,668			12,750			2,672
Charge-offs		(32,137	)		(7,388	)		(4,093	)		(3,886	)		(3,964	)
Recoveries		3,202			578			1,793			3,494			302
Balance, end of period	$	106,797		$	126,861		$	123,934		$	122,566		$	110,208

Allowance for Unfunded Commitments
Balance, beginning of period	$	13,057		$	13,786		$	16,468		$	17,480		$	18,636
Provision for credit losses		(2,595	)		(729	)		(2,682	)		(1,012	)		(1,156	)
Balance, end of period	$	10,462		$	13,057		$	13,786		$	16,468		$	17,480

Allowance for lending related credit losses	$	117,259		$	139,918		$	137,720		$	139,034		$	127,688

Provision for Credit Losses
Provision for credit losses-loans	$	8,871		$	9,737		$	3,668		$	12,750		$	2,672
Provision for credit losses-unfunded commitments		(2,595	)		(729	)		(2,682	)		(1,012	)		(1,156	)
Total provision (benefit) for credit losses	$	6,276		$	9,008		$	986		$	11,738		$	1,516

Asset Quality
Nonaccrual loans	$	69,115		$	103,123		$	94,800		$	95,426		$	51,304
Loans past due ninety days or more		832			663			611			2,507			511
Other real estate owned		6,805			7,533			2,590			12,548			14,362
Other repossessed assets		—			—			—			—			1
Total nonperforming assets	$	76,752		$	111,319		$	98,001		$	110,481		$	66,178

Nonperforming Assets Activity
Balance, beginning of period	$	111,319		$	98,001		$	110,481		$	66,178		$	66,097
Net loan (charge-offs) recoveries		(28,935	)		(6,810	)		(2,300	)		(392	)		(3,662	)
New nonperforming loans		25,441			48,346			5,470			61,193			19,295
Reduction of nonperforming loans⁽¹⁾		(30,240	)		(28,050	)		(5,692	)		(14,278	)		(14,691	)
OREO/Repossessed assets sales proceeds		(833	)		(168	)		(9,958	)		(2,220	)		(861	)
Balance, end of period	$	76,752		$	111,319		$	98,001		$	110,481		$	66,178

Asset Quality Ratios
Ratio of nonperforming loans to total loans		0.61	%		0.89	%		0.82	%		0.81	%		0.44	%
Ratio of nonperforming assets to total assets		0.42			0.59			0.51			0.57			0.33
Annualized ratio of net loan charge-offs (recoveries) to average loans		0.99			0.23			0.08			0.01			0.12
Allowance for loan credit losses as a percent of loans		0.93			1.09			1.06			1.02			0.93
Allowance for lending related credit losses as a percent of loans		1.02			1.21			1.18			1.15			1.08
Allowance for loan credit losses as a percent of nonperforming loans		152.68			122.23			129.89			125.15			212.70
Loans delinquent 30-89 days as a percent of total loans		0.26			0.25			0.31			0.09			0.12

(1) Includes principal reductions, transfers to performing status and transfers to OREO.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
	For the Quarter Ended
	September 30, 2024							June 30, 2024							September 30, 2023
	Average Balance			Interest		Rate		Average Balance			Interest		Rate		Average Balance			Interest		Rate
Earning Assets
Securities:
Taxable	$	4,254,529		$	51,116	4.78	%	$	4,490,407		$	47,381	4.24	%	$	5,726,057		$	54,800	3.80	%
Nontaxable⁽¹⁾		768,483			7,313	3.79			759,234			7,383	3.91			881,162			8,085	3.64
Total securities		5,023,012			58,429	4.63			5,249,641			54,764	4.20			6,607,219			62,885	3.78
Interest on deposits with other banks and short-term investments		355,394			4,193	4.69			194,824			3,045	6.29			142,301			1,651	4.60
Federal funds sold		—			—	—			—			—	—			152			3	7.83
Loans:⁽²⁾
Commercial and industrial⁽¹⁾		3,531,206			65,972	7.43			3,638,004			69,469	7.68			3,610,677			63,001	6.92
PPP loans		1,759			5	1.13			2,242			7	1.26			3,948			11	1.11
Owner occupied commercial real estate		2,527,006			35,189	5.54			2,615,504			37,028	5.69			2,412,501			30,127	4.95
Non-owner occupied commercial real estate		2,474,036			39,536	6.36			2,519,346			39,272	6.27			2,586,011			38,779	5.95
Real estate construction		1,106,387			22,878	8.23			1,093,399			21,770	8.01			1,027,544			19,448	7.51
Agricultural and agricultural real estate		757,745			11,536	6.06			879,707			13,390	6.12			822,957			12,582	6.07
Residential real estate		725,901			9,110	4.99			776,821			9,454	4.89			827,402			9,482	4.55
Consumer		460,959			8,956	7.73			485,266			9,421	7.81			509,024			9,615	7.49
Less: allowance for credit losses		(125,274	)		—	—			(123,319	)		—	—			(110,726	)		—	—
Net loans		11,459,725			193,182	6.71			11,886,970			199,811	6.76			11,689,338			183,045	6.21
Total earning assets		16,838,131			255,804	6.04	%		17,331,435			257,620	5.98	%		18,439,010			247,584	5.33	%
Nonearning Assets		1,601,779							1,711,927							1,768,910
Total Assets	$	18,439,910						$	19,043,362						$	20,207,920
Interest-bearing Liabilities
Savings	$	8,842,494		$	59,307	2.67	%	$	8,834,746		$	55,440	2.52	%	$	8,737,581		$	49,195	2.23	%
Time deposits		2,189,861			23,669	4.30			2,372,653			25,059	4.25			3,945,371			43,549	4.38
Borrowings		580,707			7,378	5.05			881,738			10,825	4.94			103,567			1,167	4.47
Term debt		373,158			5,543	5.91			372,820			5,564	6.00			372,112			5,765	6.15
Total interest-bearing liabilities		11,986,220			95,897	3.18	%		12,461,957			96,888	3.13	%		13,158,631			99,676	3.01	%
Noninterest-bearing Liabilities
Noninterest-bearing deposits		4,116,589							4,355,521							4,824,861
Accrued interest and other liabilities		264,062							251,943							366,905
Total noninterest-bearing liabilities		4,380,651							4,607,464							5,191,766
Stockholders’ Equity		2,073,039							1,973,941							1,857,523
Total Liabilities and Stockholders’ Equity	$	18,439,910						$	19,043,362						$	20,207,920
Net interest income, fully tax-equivalent (non-GAAP)⁽¹⁾⁽³⁾				$	159,907						$	160,732						$	147,908
Net interest spread⁽¹⁾						2.86	%						2.85	%						2.32	%
Net interest income, fully tax-equivalent (non-GAAP^)(1)(3)to total earning assets						3.78	%						3.73	%						3.18	%
Interest-bearing liabilities to earning assets		71.18	%						71.90	%						71.36	%

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to “Non-GAAP Measures” in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS
	For the Nine Months Ended
	September 30, 2024							September 30, 2023
	Average Balance			Interest		Rate		Average Balance			Interest		Rate
Earning Assets
Securities:
Taxable	$	4,469,258		$	145,511	4.35	%	$	5,927,026		$	168,948	3.81	%
Nontaxable⁽¹⁾		768,782			22,079	3.84			899,613			23,611	3.51
Total securities		5,238,040			167,590	4.27			6,826,639			192,559	3.77
Interest on deposits with other banks and other short-term investments		268,122			10,244	5.10			133,910			4,833	4.83
Federal funds sold		—			—	—			51			3	7.86
Loans:⁽²⁾
Commercial and industrial⁽¹⁾		3,603,668			202,426	7.50			3,547,256			169,552	6.39
PPP loans		2,195			19	1.16			6,718			61	1.21
Owner occupied commercial real estate		2,583,886			107,734	5.57			2,355,545			84,927	4.82
Non-owner occupied commercial real estate		2,514,452			118,657	6.30			2,459,965			105,111	5.71
Real estate construction		1,087,280			65,497	8.05			1,051,298			56,107	7.14
Agricultural and agricultural real estate		838,395			38,682	6.16			835,673			36,191	5.79
Residential mortgage		764,515			28,699	5.01			840,143			28,138	4.48
Consumer		476,967			27,578	7.72			506,143			26,925	7.11
Less: allowance for credit losses-loans		(123,497	)		—	—			(111,434	)		—	—
Net loans		11,747,861			589,292	6.70			11,491,307			507,012	5.90
Total earning assets		17,254,023			767,126	5.94	%		18,451,907			704,407	5.10	%
Nonearning Assets		1,670,839							1,730,901
Total Assets	$	18,924,862						$	20,182,808
Interest-bearing Liabilities
Savings	$	8,828,973		$	169,414	2.56	%	$	9,130,980		$	128,372	1.88	%
Time deposits		2,447,293			78,195	4.27			3,344,434			103,245	4.13
Borrowings		701,548			25,727	4.90			138,157			4,437	4.29
Term debt		372,826			16,956	6.08			372,094			16,756	6.02
Total interest-bearing liabilities		12,350,640			290,292	3.14	%		12,985,665			252,810	2.60	%
Noninterest-bearing Liabilities
Noninterest-bearing deposits		4,306,899							5,092,200
Accrued interest and other liabilities		270,164							284,008
Total noninterest-bearing liabilities		4,577,063							5,376,208
Stockholders’ Equity		1,997,159							1,820,935
Total Liabilities and Stockholders’ Equity	$	18,924,862						$	20,182,808
Net interest income, fully tax-equivalent (non-GAAP)⁽¹⁾⁽³⁾				$	476,834						$	451,597
Net interest spread⁽¹⁾						2.80	%						2.50	%
Net interest income, fully tax-equivalent (non-GAAP)⁽¹⁾⁽³⁾to total earning assets						3.69	%						3.27	%
Interest-bearing liabilities to earning assets		71.58	%						70.38	%

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Nonaccrual loans and loans held for sale are included in the average loans outstanding.
(3) Refer to “Non-GAAP Measures” in this earnings release for additional information on the usage and presentation of these non-GAAP measures, and refer to these financial tables for the reconciliations to the most directly comparable GAAP measures.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA AND FULL TIME EQUIVALENT EMPLOYEE DATA
	For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
*Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)*
Earnings available to common stockholders (GAAP)	$	62,140		$	37,730		$	49,694		$	(72,375	)	$	46,078
Plus core deposit intangibles amortization, net of tax⁽²⁾		1,022			1,081			1,131			1,229			1,240
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	63,162		$	38,811		$	50,825		$	(71,146	)	$	47,318

Average common equity (GAAP)	$	1,962,334		$	1,863,236		$	1,832,959		$	1,729,086		$	1,746,818
Less average goodwill		576,005			576,005			576,005			576,005			576,005
Less average core deposit intangibles, net		14,814			16,185			17,641			19,193			20,821
Average tangible common equity (non-GAAP)	$	1,371,515		$	1,271,046		$	1,239,313		$	1,133,888		$	1,149,992
Annualized return on average common equity (GAAP)		12.60	%		8.14	%		10.90	%	(16.61		)%		10.47	%
Annualized return on average tangible common equity (non-GAAP)		18.32	%		12.28	%		16.49	%	(24.89		)%		16.32	%

*Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)*
Net Interest Income (GAAP)	$	157,897		$	158,741		$	154,215		$	156,137		$	145,756
Plus tax-equivalent adjustment⁽¹⁾		2,010			1,991			1,981			2,058			2,152
Net interest income, fully tax-equivalent (non-GAAP)	$	159,907		$	160,732		$	156,196		$	158,195		$	147,908

Average earning assets	$	16,838,131		$	17,331,435		$	17,597,068		$	17,853,957		$	18,439,010

Annualized net interest margin (GAAP)		3.73	%		3.68	%		3.52	%		3.47	%		3.14	%
Annualized net interest margin, fully tax-equivalent (non-GAAP)		3.78			3.73			3.57			3.52			3.18
Net purchase accounting discount amortization on loans included in annualized net interest margin		0.02			0.01			0.02			0.02			0.01

*Reconciliation of Tangible Book Value Per Common Share (non-GAAP)*
Common equity (GAAP)	$	2,029,668		$	1,917,145		$	1,868,128		$	1,822,412		$	1,714,825
Less goodwill		576,005			576,005			576,005			576,005			576,005
Less core deposit intangibles, net		14,157			15,501			16,923			18,415			20,026
Tangible common equity (non-GAAP)	$	1,439,506		$	1,325,639		$	1,275,200		$	1,227,992		$	1,118,794

Common shares outstanding, net of treasury stock		42,883,865			42,852,180			42,783,670			42,688,008			42,656,303
Common equity (book value) per share (GAAP)	$	47.33		$	44.74		$	43.66		$	42.69		$	40.20
Tangible book value per common share (non-GAAP)	$	33.57		$	30.94		$	29.81		$	28.77		$	26.23

*Reconciliation of Tangible Common Equity Ratio (non-GAAP)*
Tangible common equity (non-GAAP)	$	1,439,506		$	1,325,639		$	1,275,200		$	1,227,992		$	1,118,794

Total assets (GAAP)	$	18,272,293		$	18,812,670		$	19,132,827		$	19,411,707		$	20,129,793
Less goodwill		576,005			576,005			576,005			576,005			576,005
Less core deposit intangibles, net		14,157			15,501			16,923			18,415			20,026
Total tangible assets (non-GAAP)	$	17,682,131		$	18,221,164		$	18,539,899		$	18,817,287		$	19,533,762
Tangible common equity ratio (non-GAAP)		8.14	%		7.28	%		6.88	%		6.53	%		5.73	%

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
*Reconciliation of Adjusted Efficiency Ratio, fully tax-equivalent (non-GAAP)*
Net interest income (GAAP)	$	157,897		$	158,741		$	154,215		$	156,137		$	145,756
Tax-equivalent adjustment⁽¹⁾		2,010			1,991			1,981			2,058			2,152
Fully tax-equivalent net interest income		159,907			160,732			156,196			158,195			147,908
Noninterest income		18,992			18,207			27,663			(111,801	)		28,383
Securities (gains)/losses, net		9,520			10,111			(58	)		140,007			114
Unrealized gain on equity securities, net		(377	)		(133	)		(95	)		(75	)		(13	)
Adjusted revenue (non-GAAP)	$	188,042		$	188,917		$	183,706		$	186,326		$	176,392

Total noninterest expenses (GAAP)	$	85,927		$	116,244		$	113,595		$	130,285		$	111,053
Less:
Core deposit intangibles amortization		1,345			1,421			1,492			1,611			1,625
Partnership investment in tax credit projects		222			222			494			3,573			1,136
(Gain) loss on sales/valuation of assets, net		(26,419	)		193			214			2,072			108
Acquisition, integration and restructuring costs		2,026			5,973			1,375			4,365			2,429
FDIC special assessment		(267	)		(631	)		2,049			8,145			—
Core expenses (non-GAAP)	$	109,020		$	109,066		$	107,971		$	110,519		$	105,755

Efficiency ratio (GAAP)		48.58	%		65.69	%		62.46	%		293.86	%		63.77	%
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)		57.98	%		57.73	%		58.77	%		59.31	%		59.95	%

*Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)*
Total noninterest expenses (GAAP)	$	85,927		$	116,244		$	113,595		$	130,285		$	111,053
Core expenses (non-GAAP)		109,020			109,066			107,971			110,519			105,755

Average assets	$	18,439,910		$	19,043,362		$	19,296,638		$	19,667,825		$	20,207,920
Total noninterest expenses to average assets (GAAP)		1.85	%		2.46	%		2.37	%		2.63	%		2.18	%
Core expenses to average assets (non-GAAP)		2.35	%		2.30	%		2.25	%		2.23	%		2.08	%

Acquisition, integration and restructuring costs
Salaries and employee benefits	$	58		$	462		$	168		$	1,425		$	94
Occupancy		—			—			—			1,092			—
Furniture and equipment		52			53			—			19			—
Professional fees		1,674			5,385			931			793			1,617
Advertising		—			—			—			28			178
Other noninterest expenses		242			73			276			1,008			540
Total acquisition, integration and restructuring costs	$	2,026		$	5,973		$	1,375		$	4,365		$	2,429

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended
	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
*Reconciliation of Adjusted Earnings*
Net income/(loss)	$	64,153		$	39,742		$	51,707		$	(70,363	)	$	48,091
(Gain)/loss from sale of securities		9,520			10,111			(58	)		140,007			114
(Gain)/loss on sales/valuation of assets, net		(26,419	)		193			214			2,072			108
Acquisition, integration and restructuring costs		2,026			5,973			1,375			4,365			2,429
FDIC special assessment		(267	)		(631	)		2,049			8,145			—
Total adjustments		(15,140	)		15,646			3,580			154,589			2,651
Tax effect of adjustments⁽²⁾		3,634			(3,739	)		(866	)		(36,638	)		(628	)
Adjusted earnings	$	52,647		$	51,649		$	54,421		$	47,588		$	50,114

Preferred dividends		(2,013	)		(2,012	)		(2,013	)		(2,012	)		(2,013	)
Adjusted earnings available to common stockholders	$	50,634		$	49,637		$	52,408		$	45,576		$	48,101

Plus core deposit intangibles amortization, net of tax⁽²⁾		1,022			1,081			1,131			1,229			1,240
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	51,656		$	50,718		$	53,539		$	46,805		$	49,341

*Reconciliation of Adjusted Annualized Return on Average Assets*
Average assets	$	18,439,910		$	19,043,362		$	19,296,638		$	19,667,825		$	20,207,920
Adjusted annualized return on average assets (non-GAAP)		1.14	%		1.09	%		1.13	%		0.96	%		0.98	%

*Reconciliation of Adjusted Annualized Return on Average Common Equity*
Average common stockholders’ equity (GAAP)	$	1,962,334		$	1,863,236		$	1,832,959		$	1,729,086		$	1,746,818
Adjusted annualized average common equity (non-GAAP)		10.27	%		10.71	%		11.50	%		10.46	%		10.92	%

*Reconciliation of Adjusted Annualized Return on Average Tangible Common Equity*
Average tangible common equity (non-GAAP)	$	1,371,515		$	1,271,046		$	1,239,313		$	1,133,888		$	1,149,992
Adjusted annualized average tangible common equity (non-GAAP)		14.98	%		16.05	%		17.38	%		16.38	%		17.02	%

*Reconciliation of Adjusted Diluted Earnings Per Common Share*
Weighted average shares outstanding-diluted		43,195,257			43,060,354			42,915,768			42,838,405			42,812,563
Adjusted diluted earnings per common share	$	1.17		$	1.15		$	1.22		$	1.06		$	1.12

(2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
		2024			2023			2024			2023
*Reconciliation of Annualized Return on Average Tangible Common Equity (non-GAAP)*
Earnings available to common stockholders (GAAP)	$	62,140		$	46,078		$	149,564		$	144,245
Plus core deposit intangibles amortization, net of tax⁽²⁾		1,022			1,240			3,236			3,908
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	63,162		$	47,318		$	152,800		$	148,153

Average common equity (GAAP)	$	1,962,334		$	1,746,818		$	1,886,454		$	1,710,230
Less average goodwill		576,005			576,005			576,005			576,005
Less average core deposit intangibles, net		14,814			20,821			16,208			22,501
Average tangible common equity (non-GAAP)	$	1,371,515		$	1,149,992		$	1,294,241		$	1,111,724
Annualized return on average common equity (GAAP)		12.60	%		10.47	%		10.59	%		11.28	%
Annualized return on average tangible common equity (non-GAAP)		18.32	%		16.32	%		15.77	%		17.82	%

*Reconciliation of Annualized Net Interest Margin, Fully Tax-Equivalent (non-GAAP)*
Net Interest Income (GAAP)	$	157,897		$	145,756		$	470,853		$	445,100
Plus tax-equivalent adjustment⁽¹⁾		2,010			2,152			5,981			6,497
Net interest income, fully tax-equivalent (non-GAAP)	$	159,907		$	147,908		$	476,834		$	451,597

Average earning assets	$	16,838,131		$	18,439,010		$	17,254,023		$	18,451,907

Annualized net interest margin (GAAP)		3.73	%		3.14	%		3.65	%		3.23	%
Annualized net interest margin, fully tax-equivalent (non-GAAP)		3.78			3.18			3.69			3.27
Net purchase accounting discount amortization on loans included in annualized net interest margin		0.02			0.01			0.02			0.02

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.
(2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
		2024			2023			2024			2023
*Reconciliation of Adjusted Efficiency Ratio, Fully Tax-Equivalent (non-GAAP)*
Net interest income (GAAP)	$	157,897		$	145,756		$	470,853		$	445,100
Tax-equivalent adjustment⁽¹⁾		2,010			2,152			5,981			6,497
Fully tax-equivalent net interest income		159,907			147,908			476,834			451,597
Noninterest income (GAAP)		18,992			28,383			64,862			90,875
Securities (gains)/losses, net		9,520			114			19,573			1,532
Unrealized gain on equity securities, net		(377	)		(13	)		(605	)		(165	)
Adjusted revenue (non-GAAP)	$	188,042		$	176,392		$	560,664		$	543,839

Total noninterest expenses (GAAP)	$	85,927		$	111,053		$	315,766		$	331,542
Less:
Core deposit intangibles amortization		1,345			1,625			4,258			5,128
Partnership investment in tax credit projects		222			1,136			938			1,828
(Gain)/loss on sales/valuation of assets, net		(26,419	)		108			(26,012	)		(2,149	)
Acquisition, integration and restructuring costs		2,026			2,429			9,374			5,994
FDIC special assessment		(267	)		—			1,151			—
Core expenses (non-GAAP)	$	109,020		$	105,755		$	326,057		$	320,741

Efficiency ratio (GAAP)		48.58	%		63.77	%		58.94	%		61.86	%
Adjusted efficiency ratio, fully tax-equivalent (non-GAAP)		57.98	%		59.95	%		58.16	%		58.98	%

*Reconciliation of Annualized Ratio of Core Expenses to Average Assets (non-GAAP)*
Total noninterest expenses (GAAP)	$	85,927		$	111,053		$	315,766		$	331,542
Core expenses (non-GAAP)		109,020			105,755			326,057			320,741

Average assets	$	18,439,910		$	20,207,920		$	18,924,862		$	20,182,808
Total noninterest expenses to average assets (GAAP)		1.85	%		2.18	%		2.23	%		2.20	%
Core expenses to average assets (non-GAAP)		2.35	%		2.08	%		2.30	%		2.12	%

Acquisition, integration and restructuring costs
Salaries and employee benefits	$	58		$	94		$	689		$	261
Occupancy		—			—			—			—
Furniture and equipment		52			—			105			—
Professional fees		1,674			1,617			7,990			3,619
Advertising		—			178			—			522
Other noninterest expenses		242			540			590			1,592
Total acquisition, integration and restructuring costs	$	2,026		$	2,429		$	9,374		$	5,994

(1) Computed on a tax-equivalent basis using an effective tax rate of 21%.

HEARTLAND FINANCIAL USA, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
		2024			2023			2024			2023
*Reconciliation of Adjusted Earnings (non-GAAP)*
Net income/(loss)	$	64,153		$	48,091		$	155,602		$	150,283
(Gain)/loss from sale of securities		9,520			114			19,573			1,532
(Gain)/loss on sales/valuation of assets, net		(26,419	)		108			(26,012	)		(2,149	)
Acquisition, integration and restructuring costs		2,026			2,429			9,374			5,994
FDIC special assessment		(267	)		—			1,151			—
Total adjustments		(15,140	)		2,651			4,086			5,377
Tax effect of adjustments⁽²⁾		3,634			(628	)		(981	)		(1,280	)
Adjusted earnings	$	52,647		$	50,114		$	158,707		$	154,380

Preferred dividends		(2,013	)		(2,013	)		(6,038	)		(6,038	)
Adjusted earnings available to common stockholders	$	50,634		$	48,101		$	152,669		$	148,342

Plus core deposit intangibles amortization, net of tax⁽²⁾		1,022			1,240			3,236			3,908
Earnings available to common stockholders excluding intangible amortization (non-GAAP)	$	51,656		$	49,341		$	155,905		$	152,250

*Reconciliation of Adjusted Annualized Return on Average Assets*
Average assets	$	18,439,910		$	20,207,920		$	18,924,862		$	20,182,808
Adjusted annualized return on average assets (non-GAAP)		1.14	%		0.98	%		1.12	%		1.02	%

*Reconciliation of Adjusted Annualized Return on Average Common Equity*
Average common stockholders’ equity (GAAP)	$	1,962,334		$	1,746,818		$	1,886,454		$	1,710,230
Adjusted annualized return on average common equity (non-GAAP)		10.27	%		10.92	%		10.81	%		11.60	%

*Reconciliation of Adjusted Annualized Return on Average Tangible Common Equity*
Average tangible common equity (non-GAAP)	$	1,371,515		$	1,149,992		$	1,294,241		$	1,111,724
Adjusted annualized return on average tangible common equity (non-GAAP)		14.98	%		17.02	%		16.09	%		18.31	%

*Reconciliation of Adjusted Diluted Earnings Per Common Share*
Weighted average shares outstanding-diluted		43,195,257			42,812,563			43,080,422			42,769,872
Adjusted diluted earnings per common share	$	1.17		$	1.12		$	3.54		$	3.47

(2) Tax effect is calculated based on the respective periods’ year-to-date effective tax rate excluding the impact of discrete items.

The MIL Network –

January 25, 2025

MIL-OSI: Montauk Renewables Schedules Third Quarter 2024 Conference Call for Tuesday, November 12, 2024, at 5:00 p.m. ET

Source: GlobeNewswire (MIL-OSI)

PITTSBURGH, Oct. 29, 2024 (GLOBE NEWSWIRE) — Montauk Renewables, Inc. (“Montauk” or “the Company”) (NASDAQ: MNTK), a renewable energy company specializing in the management, recovery and conversion of biogas into renewable natural gas (“RNG”), will host a conference call and webcast 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 will issue a press release reporting the financial results after the close of regular stock market trading hours on the same day as the conference call and webcast.

Third Quarter 2024 Conference Call and Webcast Details

Date:		Tuesday, November 12, 2024
Time:		5:00 p.m. ET
Participant Access:		[Link Here]

Please register for the conference call and webcast using the above link in advance of the call start time. The webcast platform will register your name and organization as well as provide dial-in numbers and a unique access pin. Please contact Gateway Group at (949) 574-3860 if you experience technical difficulties.

The conference call and webcast will have a live Q&A session and be available here and on the Company’s website at https://ir.montaukrenewables.com.

A replay of the conference call and webcast will be available after 8:00 p.m. Eastern time on the same day through November 12, 2025.

About Montauk Renewables, Inc.

Montauk Renewables, Inc. (NASDAQ: MNTK) is a renewable energy company specializing in the management, recovery and conversion of biogas into RNG. The Company captures methane, preventing it from being released into the atmosphere, and converts it into either RNG or electrical power for the electrical grid (“Renewable Electricity”). The Company, headquartered in Pittsburgh, Pennsylvania, has more than 30 years of experience in the development, operation and management of landfill methane-fueled renewable energy projects. The Company has operations at 14 projects and ongoing development projects located in California, Idaho, Ohio, Oklahoma, Pennsylvania, North Carolina, South Carolina, and Texas. The Company sells RNG and Renewable Electricity, taking advantage of Environmental Attribute premiums available under federal and state policies that incentivize their use. For more information, visit https://ir.montaukrenewables.com.

Company Contact:

John Ciroli
Chief Legal Officer (CLO) & Secretary
investors@montaukenergy.com
(412) 747-8700

Investor Relations Contact:

Georg Venturatos
Gateway Group
MNTK@Gateway-grp.com
(949) 574-3860

The MIL Network –

January 25, 2025

MIL-OSI: Evolution Petroleum Schedules Fiscal First Quarter 2025 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

HOUSTON, Oct. 29, 2024 (GLOBE NEWSWIRE) — Evolution Petroleum Corporation (NYSE American: EPM) (“Evolution” or the “Company”) today announced that it plans to release its fiscal first quarter 2025 financial and operating results on Tuesday, November 12, 2024, after the market closes. Additionally, Kelly Loyd, President and Chief Executive Officer, Ryan Stash, Senior Vice President, Chief Financial Officer, and Treasurer, and Mark Bunch, Chief Operating Officer, will review the results on a conference call at 10:00 a.m. Central Time on Wednesday, November 13, 2024.

Conference Call and Webcast Details

Date: Wednesday, November 13, 2024
Time: 10:00 a.m. Central Time
Dial-In: (844) 481-2813
International Dial-In: (412) 317-0677
Note: Dial-in participants should ask to join the Evolution Petroleum Corporation call.
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=zEqrDXV4

A webcast replay will be available through November 13, 2025, via the webcast link above and on Evolution’s website at www.ir.evolutionpetroleum.com.

About Evolution Petroleum

Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Properties include non-operated interests in the following areas: the SCOOP/STACK plays of the Anadarko Basin in Oklahoma; the Chaveroo Oilfield located in Chaves and Roosevelt Counties, New Mexico; the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field located in Hot Springs County, Wyoming; the Delhi Holt-Bryant Unit in the Delhi Field in Northeast Louisiana; as well as small overriding royalty interests in four onshore Texas wells. Visit www.evolutionpetroleum.com for more information.

Contact
Investor Relations
(713) 935-0122
ir@evolutionpetroleum.com

The MIL Network –

January 25, 2025

MIL-OSI: Onity Group Schedules Conference Call – Third Quarter 2024 Results and Business Update

Source: GlobeNewswire (MIL-OSI)

WEST PALM BEACH, Fla., Oct. 29, 2024 (GLOBE NEWSWIRE) — Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”), a leading non-bank mortgage servicer and originator, today announced that it will hold a conference call on Tuesday, November 5, 2024 at 8:30 a.m. (ET) to review the Company’s third quarter 2024 operating results and provide a business update.

All interested parties are welcome to participate. You can access the conference call by dialing (800) 343-5172 or (203) 518-9856 approximately 10 minutes prior to the call; please reference the conference ID “Onity.” Participants can also access the conference call through a live audio webcast available from the Shareholder Relations page at onitygroup.com under Events and Presentations.

An investor presentation will accompany the conference call and be available by visiting the Shareholder Relations page at onitygroup.com prior to the call.

A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call’s completion through November 19, 2024, by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11157248.

About Onity Group

Onity Group Inc. (NYSE: ONIT) is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.

For Further Information Contact:

Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com

The MIL Network –

January 25, 2025

MIL-OSI: AMD Reports Third Quarter 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) today announced revenue for the third quarter of 2024 of $6.8 billion, gross margin of 50%, operating income of $724 million, net income of $771 million and diluted earnings per share of $0.47. On a non-GAAP^(*) basis, gross margin was 54%, operating income was $1.7 billion, net income was $1.5 billion and diluted earnings per share was $0.92.

“We delivered strong third quarter financial results with record revenue led by higher sales of EPYC and Instinct data center products and robust demand for our Ryzen PC processors,” said AMD Chair and CEO Dr. Lisa Su. “Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute.”

“We are pleased with our execution in the third quarter, delivering strong year-over-year expansion in gross margin and earnings per share,” said AMD EVP, CFO and Treasurer Jean Hu. “We are on-track to deliver record annual revenue for 2024 based on significant growth in our Data Center and Client segments.”

GAAP Quarterly Financial Results

	Q3 2024	Q3 2023	Y/Y	Q2 2024	Q/Q
Revenue ($M)	$6,819	$5,800	Up 18%	$5,835	Up 17%
Gross profit ($M)	$3,419	$2,747	Up 24%	$2,864	Up 19%
Gross margin	50%	47%	Up 3 ppts	49%	Up 1 ppt
Operating expenses ($M)	$2,709	$2,533	Up 7%	$2,605	Up 4%
Operating income ($M)	$724	$224	Up 223%	$269	Up 169%
Operating margin	11%	4%	Up 7 ppts	5%	Up 6 ppts
Net income ($M)	$771	$299	Up 158%	$265	Up 191%
Diluted earnings per share	$0.47	$0.18	Up 161%	$0.16	Up 194%

*Non-GAAP() Quarterly Financial Results**

	Q3 2024	Q3 2023	Y/Y	Q2 2024	Q/Q
Revenue ($M)	$6,819	$5,800	Up 18%	$5,835	Up 17%
Gross profit ($M)	$3,657	$2,963	Up 23%	$3,101	Up 18%
Gross margin	54%	51%	Up 3 ppts	53%	Up 1 ppt
Operating expenses ($M)	$1,956	$1,697	Up 15%	$1,847	Up 6%
Operating income ($M)	$1,715	$1,276	Up 34%	$1,264	Up 36%
Operating margin	25%	22%	Up 3 ppts	22%	Up 3 ppts
Net income ($M)	$1,504	$1,135	Up 33%	$1,126	Up 34%
Diluted earnings per share	$0.92	$0.70	Up 31%	$0.69	Up 33%

Segment Summary

Record Data Center segment revenue of $3.5 billion was up 122% year-over-year and 25% sequentially primarily driven by the strong ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU sales.
Client segment revenue was $1.9 billion, up 29% year-over-year and 26% sequentially primarily driven by strong demand for “Zen 5” AMD Ryzen™ processors.
Gaming segment revenue was $462 million, down 69% year-over-year and 29% sequentially primarily due to a decrease in semi-custom revenue.
Embedded segment revenue was $927 million, down 25% year-over-year as customers normalized their inventory levels. On a sequential basis, revenue increased 8% as demand improved in several end markets.

Recent PR Highlights

At the Advancing AI 2024 event this month, AMD and strategic partners including Dell, Google Cloud, HPE, Lenovo, Meta, Microsoft, Oracle Cloud Infrastructure, Supermicro and AI leaders Databricks, Essential AI, Fireworks AI, Luma AI and Reka AI unveiled a broad portfolio of solutions delivering enterprise AI at scale based on the latest AMD Instinct accelerators, EPYC CPUs, AMD networking solutions and Ryzen PRO CPUs:
- New AMD EPYC 9005 Series processors, with record-breaking performance and energy efficiency for diverse data center needs, available in a wide range of platforms from leading OEMs and ODMs.
- AMD Instinct MI325X accelerators, delivering leadership performance and memory capabilities for the most demanding AI workloads. AMD also shared new details on next-gen AMD Instinct accelerators planned to launch in 2025 and 2026.
- An expanded high performance networking portfolio to maximize performance, scalability and efficiency for AI systems, with the new AMD Pensando™ Salina DPU and AMD Pensando Pollara 400 NIC.
- New Ryzen AI PRO 300 Series mobile processors, powering next-gen AI PCs for the enterprise with 50+ AI TOPS and leadership performance, battery life, security and manageability features.
AMD continues to extend leadership AI performance, optimizations and customer adoption for AMD Instinct accelerators and AMD ROCm™ open software:
- Oracle Cloud Infrastructure selected AMD Instinct MI300X accelerators with AMD ROCm open software to power its latest OCI Compute Supercluster designed for demanding AI workloads.
- AMD unveiled its first results on leading AI benchmark MLPerf, revealing excellent performance for AMD Instinct MI300X accelerators advanced by the AMD ROCm software platform, on-par with NVIDIA H100.
- AMD highlighted support for the latest Llama 3.2 release from Meta, enabling developers to build new agentic applications and personalized AI experiences on AMD accelerators and processors from cloud to edge and AI PCs.
AMD and ecosystem partners are enabling new AI PC platforms and capabilities:
- In partnership with Microsoft, AMD announced that Copilot+ will be enabled on AMD CPU-powered AI PCs via a free upgrade planned to be available starting in November 2024.
- OEM partners including Acer, HP, Lenovo and Asus announced new systems powered by AMD Ryzen AI 300 Series mobile processors, leveraging the leadership gaming, content creation and everyday performance of the new “Zen 5” architecture.
AMD expanded its embedded portfolio for a range of applications, including:
AMD announced an agreement to acquire ZT Systems, a leading provider of AI and general purpose compute infrastructure for the world’s largest hyperscale providers, to expand the company’s data center AI systems capabilities and accelerate deployment of AMD AI rack scale systems with cloud and enterprise customers. The acquisition is subject to regulatory clearance and other customary closing conditions and is expected to close in the first half of 2025.
AMD completed the acquisition of Silo AI to accelerate development and deployment of AI models on AMD hardware.
AMD and Intel announced the creation of an x86 ecosystem advisory group with Broadcom, Dell, Google, HPE, HP, Lenovo, Meta, Microsoft, Oracle, Red Hat and industry luminaries Linus Torvalds and Tim Sweeney to collaborate on architectural interoperability and simplify software development.

Current Outlook

AMD’s outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement” below.

For the fourth quarter of 2024, AMD expects revenue to be approximately $7.5 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 22% and sequential growth of approximately 10%. Non-GAAP gross margin is expected to be approximately 54%.

AMD Teleconference

AMD will hold a conference call for the financial community at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its third quarter 2024 financial results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.

Media Contact:
Drew Prairie
AMD Communications
512-602-4425
drew.prairie@amd.com

Investor Contact:
Mitch Haws
AMD Investor Relations
408-749-3124
mitch.haws@amd.com

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share data) (Unaudited)

	Three Months Ended
	September 28, 2024			June 29, 2024			September 30, 2023
GAAP gross profit	$	3,419		$	2,864		$	2,747
*GAAP gross margin*		50	%		49	%		47	%
Stock-based compensation		5			5			6
Amortization of acquisition-related intangibles		233			231			210
Acquisition-related and other costs⁽¹⁾		—			1			—
Non-GAAP gross profit	$	3,657		$	3,101		$	2,963
Non-GAAP gross margin		54	%		53	%		51	%

GAAP operating expenses	$	2,709		$	2,605		$	2,533
*GAAP operating expenses/revenue %*		40	%		45	%		44	%
Stock-based compensation		346			341			347
Amortization of acquisition-related intangibles		352			372			450
Acquisition-related and other costs⁽¹⁾		55			45			39
Non-GAAP operating expenses	$	1,956		$	1,847		$	1,697
Non-GAAP operating expenses/revenue %		29	%		32	%		29	%

GAAP operating income	$	724		$	269		$	224
*GAAP operating margin*		11	%		5	%		4	%
Stock-based compensation		351			346			353
Amortization of acquisition-related intangibles		585			603			660
Acquisition-related and other costs⁽¹⁾		55			46			39
Non-GAAP operating income	$	1,715		$	1,264		$	1,276
*Non-GAAP operating margin*		25	%		22	%		22	%

	Three Months Ended
	September 28, 2024						June 29, 2024						September 30, 2023
GAAP net income / earnings per share	$	771		$	0.47		$	265		$	0.16		$	299		$	0.18
(Gains) losses on equity investments, net		(1	)		—			—			—			(4	)		—
Stock-based compensation		351			0.21			346			0.21			353			0.22
Equity income in investee		(7	)		—			(7	)		—			(3	)		—
Amortization of acquisition-related intangibles		585			0.36			603			0.37			660			0.41
Acquisition-related and other costs⁽¹⁾		56			0.03			46			0.03			39			0.02
Income tax provision		(251	)		(0.15	)		(127	)		(0.08	)		(209	)		(0.13	)
Non-GAAP net income / earnings per share	$	1,504		$	0.92		$	1,126		$	0.69		$	1,135		$	0.70

(1)

Acquisition-related and other costs primarily comprised of transaction costs, purchase price adjustments for inventory, certain compensation charges, contract termination and workforce rebalancing charges.

About AMD

For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, LinkedIn and X pages.

Cautionary Statement

This press release contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as AMD’s expectations for future growth in data center, client and embedded businesses; AMD being on track to deliver record annual revenue growth for 2024 based on significant growth in AMD’s Data Center and Client segments; AMD’s expectations about the demand for more compute; the features, functionality, performance, availability, timing and expected benefits of future AMD products; AMD’s anticipated acquisition of ZT Systems and the expected timing of the transaction; and AMD’s expected fourth quarter 2024 financial outlook, including revenue and non-GAAP gross margin, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this press release are based on current beliefs, assumptions and expectations, speak only as of the date of this press release and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: Intel Corporation’s dominance of the microprocessor market and its aggressive business practices; Nvidia’s dominance in the graphics processing unit market and its aggressive business practices; the cyclical nature of the semiconductor industry; market conditions of the industries in which AMD products are sold; loss of a significant customer; competitive markets in which AMD’s products are sold; economic and market uncertainty; quarterly and seasonal sales patterns; AMD’s ability to adequately protect its technology or other intellectual property; unfavorable currency exchange rate fluctuations; ability of third party manufacturers to manufacture AMD’s products on a timely basis in sufficient quantities and using competitive technologies; availability of essential equipment, materials, substrates or manufacturing processes; ability to achieve expected manufacturing yields for AMD’s products; AMD’s ability to introduce products on a timely basis with expected features and performance levels; AMD’s ability to generate revenue from its semi-custom SoC products; potential security vulnerabilities; potential security incidents including IT outages, data loss, data breaches and cyberattacks; uncertainties involving the ordering and shipment of AMD’s products; AMD’s reliance on third-party intellectual property to design and introduce new products; AMD’s reliance on third-party companies for design, manufacture and supply of motherboards, software, memory and other computer platform components; AMD’s reliance on Microsoft and other software vendors’ support to design and develop software to run on AMD’s products; AMD’s reliance on third-party distributors and add-in-board partners; impact of modification or interruption of AMD’s internal business processes and information systems; compatibility of AMD’s products with some or all industry-standard software and hardware; costs related to defective products; efficiency of AMD’s supply chain; AMD’s ability to rely on third party supply-chain logistics functions; AMD’s ability to effectively control sales of its products on the gray market; long-term impact of climate change on AMD’s business; impact of government actions and regulations such as export regulations, tariffs and trade protection measures; AMD’s ability to realize its deferred tax assets; potential tax liabilities; current and future claims and litigation; impact of environmental laws, conflict minerals related provisions and other laws or regulations; evolving expectations from governments, investors, customers and other stakeholders regarding corporate responsibility matters; issues related to the responsible use of AI; restrictions imposed by agreements governing AMD’s notes, the guarantees of Xilinx’s notes and the revolving credit agreement; the ability to obtain applicable regulatory approvals for the acquisition of ZT Systems in a timely manner or otherwise and to satisfy other closing conditions to the transaction; impact of acquisitions, joint ventures and/or investments on AMD’s business and AMD’s ability to integrate acquired businesses;  impact of any impairment of the combined company’s assets; political, legal and economic risks and natural disasters; future impairments of technology license purchases; AMD’s ability to attract and retain qualified personnel; and AMD’s stock price volatility. Investors are urged to review in detail the risks and uncertainties in AMD’s Securities and Exchange Commission filings, including but not limited to AMD’s most recent reports on Forms 10-K and 10-Q.

(*)		In this earnings press release, in addition to GAAP financial results, AMD has provided non-GAAP financial measures including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating expenses/revenue%, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal 2024, AMD uses a projected non-GAAP tax rate of 13%, which excludes the tax impact of pre-tax non-GAAP adjustments, reflecting currently available information. AMD also provided adjusted EBITDA, free cash flow and free cash flow margin as supplemental non-GAAP measures of its performance. These items are defined in the footnotes to the selected corporate data tables provided at the end of this earnings press release. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD’s performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance and for the other reasons described in the footnotes to the selected data tables. The non-GAAP financial measures disclosed in this earnings press release should be viewed in addition to and not as a substitute for or superior to AMD’s reported results prepared in accordance with GAAP and should be read only in conjunction with AMD’s Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the data tables in this earnings press release. This earnings press release also contains forward-looking non-GAAP gross margin concerning AMD’s financial outlook, which is based on current expectations as of October 29, 2024 and assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP gross margin outlook typically include stock-based compensation, amortization of acquired intangible assets and acquisition-related and other costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD’s control, therefore, a reconciliation to equivalent GAAP measures is not practicable at this time. AMD undertakes no intent or obligation to publicly update or revise its outlook statements as a result of new information, future events or otherwise, except as may be required by law.

©2024 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD Arrow logo, 3D V-Cache, Alveo, EPYC, FidelityFX, Instinct, Kria, Radeon, Ryzen, Threadripper, Ultrascale+, Versal, Zynq, and combinations thereof, are trademarks of Advanced Micro Devices, Inc.

ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions except per share amounts and percentages) (Unaudited)

	Three Months Ended									Nine Months Ended
	September 28, 2024			June 29, 2024			September 30, 2023			September 28, 2024			September 30, 2023
Net revenue	$	6,819		$	5,835		$	5,800		$	18,127		$	16,512
Cost of sales		3,167			2,740			2,843			8,590			8,236
Amortization of acquisition-related intangibles		233			231			210			694			727
Total cost of sales		3,400			2,971			3,053			9,284			8,963
Gross profit		3,419			2,864			2,747			8,843			7,549
Gross margin		50	%		49	%		47	%		49	%		46	%
Research and development		1,636			1,583			1,507			4,744			4,361
Marketing, general and administrative		721			650			576			1,991			1,708
Amortization of acquisition-related intangibles		352			372			450			1,116			1,449
Licensing gain		(14	)		(10	)		(10	)		(37	)		(28	)
Operating income		724			269			224			1,029			59
Interest expense		(23	)		(25	)		(26	)		(73	)		(79	)
Other income (expense), net		36			55			59			144			148
Income before income taxes and equity income		737			299			257			1,100			128
Income tax provision (benefit)		(27	)		41			(39	)		(38	)		(49	)
Equity income in investee		7			7			3			21			10
Net income	$	771		$	265		$	299		$	1,159		$	187
Earnings per share
Basic	$	0.48		$	0.16		$	0.18		$	0.72		$	0.12
Diluted	$	0.47		$	0.16		$	0.18		$	0.71		$	0.11
Shares used in per share calculation
Basic		1,620			1,618			1,616			1,619			1,613
Diluted		1,636			1,637			1,629			1,638			1,625

ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)

	September 28, 2024			December 30, 2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	3,897		$	3,933
Short-term investments		647			1,840
Accounts receivable, net		7,241			5,376
Inventories		5,374			4,351
Receivables from related parties		29			9
Prepaid expenses and other current assets		1,547			1,259
Total current assets		18,735			16,768
Property and equipment, net		1,669			1,589
Operating lease right-of-use assets		647			633
Goodwill		24,839			24,262
Acquisition-related intangibles, net		19,572			21,363
Investment: equity method		137			99
Deferred tax assets		1,183			366
Other non-current assets		2,854			2,805
Total Assets	$	69,636		$	67,885

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,530		$	2,055
Payables to related parties		461			363
Accrued liabilities		4,120			3,082
Current portion of long-term debt, net		—			751
Other current liabilities		389			438
Total current liabilities		7,500			6,689
Long-term debt, net of current portion		1,720			1,717
Long-term operating lease liabilities		518			535
Deferred tax liabilities		1,162			1,202
Other long-term liabilities		1,751			1,850

Stockholders’ equity:
Capital stock:
Common stock, par value		17			17
Additional paid-in capital		60,896			59,676
Treasury stock, at cost		(5,812	)		(4,514	)
Retained earnings		1,882			723
Accumulated other comprehensive income (loss)		2			(10	)
Total stockholders’ equity	$	56,985		$	55,892
Total Liabilities and Stockholders’ Equity	$	69,636		$	67,885

ADVANCED MICRO DEVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions) (Unaudited)

	Three Months Ended						Nine Months Ended
	September 28, 2024			September 30, 2023			September 28, 2024			September 30, 2023
Cash flows from operating activities:
Net income	$	771		$	299		$	1,159		$	187
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		756			823			2,309			2,654
Stock-based compensation		351			353			1,068			1,010
Amortization of operating lease right-of-use assets		30			25			82			73
Deferred income taxes		(607	)		(218	)		(863	)		(800	)
Inventory loss at contract manufacturer		—			—			65			—
Other		(13	)		(23	)		(50	)		(31	)
Changes in operating assets and liabilities
Accounts receivable, net		(1,489	)		(743	)		(1,862	)		(929	)
Inventories		(386	)		122			(1,096	)		(674	)
Prepaid expenses and other assets		(16	)		(143	)		(250	)		(380	)
Receivables from and payables to related parties, net		36			14			78			(136	)
Accounts payable		832			(547	)		476			(238	)
Accrued and other liabilities		363			459			626			550
Net cash provided by operating activities		628			421			1,742			1,286
Cash flows from investing activities:
Purchases of property and equipment		(132	)		(124	)		(428	)		(407	)
Purchases of short-term investments		(142	)		(496	)		(707	)		(3,312	)
Proceeds from maturity of short-term investments		149			746			1,351			1,917
Proceeds from sale of short-term investments		589			—			591			248
Acquisitions, net of cash acquired		(548	)		(14	)		(548	)		(14	)
Related party equity method investment		(17	)		—			(17	)		—
Other		(37	)		(10	)		(129	)		(5	)
Net cash provided by (used in) investing activities		(138	)		102			113			(1,573	)
Cash flows from financing activities:
Repayment of debt		—			—			(750	)		—
Proceeds from sales of common stock through employee equity plans		4			4			152			148
Repurchases of common stock		(250	)		(511	)		(606	)		(752	)
Common stock repurchases for tax withholding on employee equity plans		(460	)		(295	)		(686	)		(382	)
Other		—			(1	)		(1	)		1
Net cash used in financing activities		(706	)		(803	)		(1,891	)		(987	)
Net decrease in cash and cash equivalents	$	(216	)	$	(280	)	$	(36	)	$	(1,274	)
Cash and cash equivalents at beginning of period		4,113			3,841			3,933			4,835
Cash and cash equivalents at end of period	$	3,897		$	3,561		$	3,897		$	3,561

ADVANCED MICRO DEVICES, INC.
SELECTED CORPORATE DATA
(Millions) (Unaudited)

	Three Months Ended									Nine Months Ended
	September 28, 2024			June 29, 2024			September 30, 2023			September 28, 2024			September 30, 2023
Segment and Category Information⁽¹⁾
Data Center
Net revenue	$	3,549		$	2,834		$	1,598		$	8,720		$	4,214
Operating income	$	1,041		$	743		$	306		$	2,325		$	601
Client
Net revenue	$	1,881		$	1,492		$	1,453		$	4,741		$	3,190
Operating income (loss)	$	276		$	89		$	140		$	451		$	(101	)
Gaming
Net revenue	$	462		$	648		$	1,506		$	2,032		$	4,844
Operating income	$	12		$	77		$	208		$	240		$	747
Embedded
Net revenue	$	927		$	861		$	1,243		$	2,634		$	4,264
Operating income	$	372		$	345		$	612		$	1,059		$	2,167
All Other
Net revenue	$	—		$	—		$	—		$	—		$	—
Operating loss	$	(977	)	$	(985	)	$	(1,042	)	$	(3,046	)	$	(3,355	)
Total
Net revenue	$	6,819		$	5,835		$	5,800		$	18,127		$	16,512
Operating income	$	724		$	269		$	224		$	1,029		$	59

Other Data
Capital expenditures	$	132		$	154		$	124		$	428		$	407
Adjusted EBITDA⁽²⁾	$	1,887		$	1,430		$	1,439		$	4,612		$	3,920
Cash, cash equivalents and short-term investments	$	4,544		$	5,340		$	5,785		$	4,544		$	5,785
Free cash flow⁽³⁾	$	496		$	439		$	297		$	1,314		$	879
Total assets	$	69,636		$	67,886		$	67,626		$	69,636		$	67,626
Total debt	$	1,720		$	1,719		$	2,467		$	1,720		$	2,467

(1)		The Data Center segment primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence (AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers.
		The Client segment primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers.
		The Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.
		The Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.
		From time to time, the Company may also sell or license portions of its IP portfolio.
		All Other category primarily includes certain expenses and credits that are not allocated to any of the operating segments, such as amortization of acquisition-related intangible asset, employee stock-based compensation expense, acquisition-related and other costs, inventory loss at contract manufacturer, and licensing gain.

(2)

Reconciliation of GAAP Net Income to Adjusted EBITDA

	Three Months Ended									Nine Months Ended
(Millions) (Unaudited)	September 28, 2024			June 29, 2024			September 30, 2023			September 28, 2024			September 30, 2023
GAAP net income	$	771		$	265		$	299		$	1,159		$	187
Interest expense		23			25			26			73			79
Other (income) expense, net		(36	)		(55	)		(59	)		(144	)		(148	)
Income tax provision (benefit)		(27	)		41			(39	)		(38	)		(49	)
Equity income in investee		(7	)		(7	)		(3	)		(21	)		(10	)
Stock-based compensation		351			346			353			1,068			1,006
Depreciation and amortization		171			166			163			499			478
Amortization of acquisition-related intangibles		585			603			660			1,810			2,176
Inventory loss at contract manufacturer		—			—			—			65			—
Acquisition-related and other costs		56			46			39			141			201
Adjusted EBITDA	$	1,887		$	1,430		$	1,439		$	4,612		$	3,920

The Company presents “Adjusted EBITDA” as a supplemental measure of its performance. Adjusted EBITDA for the Company is determined by adjusting GAAP net income for interest expense, other (income) expense, net, income tax provision (benefit), equity income in investee, stock-based compensation, depreciation and amortization expense, amortization of acquisition-related intangibles, inventory loss at contract manufacturer, and acquisition-related and other costs. The Company calculates and presents Adjusted EBITDA because management believes it is of importance to investors and lenders in relation to its overall capital structure and its ability to borrow additional funds. In addition, the Company presents Adjusted EBITDA because it believes this measure assists investors in comparing its performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its core operating performance. The Company’s calculation of Adjusted EBITDA may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view Adjusted EBITDA as an alternative to the GAAP operating measure of income or GAAP liquidity measures of cash flows from operating, investing and financing activities. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities that can affect cash flows.

(3)

Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow

	Three Months Ended									Nine Months Ended
(Millions except percentages) (Unaudited)	September 28, 2024			June 29, 2024			September 30, 2023			September 28, 2024			September 30, 2023
GAAP net cash provided by operating activities	$	628		$	593		$	421		$	1,742		$	1,286
Operating cash flow margin %		9	%		10	%		7	%		10	%		8	%
Purchases of property and equipment		(132	)		(154	)		(124	)		(428	)		(407	)
Free cash flow	$	496		$	439		$	297		$	1,314		$	879
Free cash flow margin %		7	%		8	%		5	%		7	%		5	%

The Company also presents free cash flow as a supplemental Non-GAAP measure of its performance. Free cash flow is determined by adjusting GAAP net cash provided by operating activities for capital expenditures, and free cash flow margin % is free cash flow expressed as a percentage of the Company’s net revenue. The Company calculates and communicates free cash flow in the financial earnings press release because management believes it is of importance to investors to understand the nature of these cash flows. The Company’s calculation of free cash flow may or may not be consistent with the calculation of this measure by other companies in the same industry. Investors should not view free cash flow as an alternative to GAAP liquidity measures of cash flows from operating activities.

The MIL Network –

January 25, 2025

MIL-OSI: Greenlight Capital Re, Ltd. Schedules Third Quarter 2024 Financial Results and Conference Call

Source: GlobeNewswire (MIL-OSI)

GRAND CAYMAN, Cayman Islands, Oct. 29, 2024 (GLOBE NEWSWIRE) — Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (the “Company” or “Greenlight Re”), a multiline property and casualty insurer and reinsurer, today announced that it expects to release financial results for the quarter ended September 30, 2024, after the market closes on Monday, November 4, 2024. A live conference call to discuss the financial results will be held on Tuesday, November 5, 2024, at 9:00 a.m. Eastern Time.

Conference Call Details

To participate in the Greenlight Re Third Quarter 2024 Earnings Call, please dial in to the conference call at:

U.S. toll free 1-877-407-9753
International 1-201-493-6739

The conference call can also be accessed via webcast at:

https://event.webcasts.com/starthere.jsp?ei=1692074&tp_key=a944f284f8

A telephone replay will be available following the call through November 11, 2024. The replay of the call may be accessed by dialing 1-877-660-6853 (U.S. toll free) or 1-201-612-7415 (international), access code 13749374. An audio file of the call will also be available on the Company’s website, www.greenlightre.com.

About Greenlight Capital Re, Ltd.
Greenlight Re (www.greenlightre.com) provides multiline property and casualty insurance and reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland, and its Lloyd’s platform, Greenlight Innovation Syndicate 3456. The Company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. The Company’s innovations unit, Greenlight Re Innovations, supports technology innovators in the (re)insurance space by providing investment capital, risk capacity, and access to a broad insurance network.

Investor Relations Contact
Karin Daly
Vice President, The Equity Group Inc.
(212) 836-9623
IR@greenlightre.ky

The MIL Network –

January 25, 2025

MIL-OSI: Defiance ETFs Announces Increase in Leverage for MSTX and SMST ETFs to 2x

Source: GlobeNewswire (MIL-OSI)

MIAMI, Oct. 29, 2024 (GLOBE NEWSWIRE) — Defiance ETFs, a pioneer in leveraged single-stock ETFs, is excited to announce an increase in leverage for two of its flagship products, MSTX and SMST, from 1.75x and 1.5x respectively to 2x daily target exposure. This change marks a strategic enhancement, positioning Defiance to stay at the forefront of the market amid increased investor interest.

MSTX, Defiance’s first-of-its-kind leveraged ETF providing long exposure to MicroStrategy (NASDAQ: MSTR), will now deliver 2x daily targeted exposure, enhancing potential returns for investors seeking amplified access to MicroStrategy’s price movements. MicroStrategy, a leader in data analytics and one of the largest corporate holders of Bitcoin, presents an innovative investment vehicle for investors looking to capitalize on the unique and volatile dynamics of the cryptocurrency market.

SMST, Defiance’s Short MicroStrategy ETF, has likewise increased to 2x inverse daily exposure, enabling sophisticated traders to capitalize on potential downturns in MicroStrategy’s stock with greater leverage. This ETF offers traders a powerful tool to hedge against Bitcoin volatility, considering MicroStrategy’s significant holdings in the cryptocurrency. With this enhanced inverse leverage, SMST allows investors to tactically manage risk or capitalize on anticipated market declines with a more potent instrument.

“Following the strong response to MSTX and SMST, we recognized the importance of delivering enhanced leverage in response to investor demand and competitive dynamics,” said Sylvia Jablonski, CEO of Defiance ETFs. “With the transition to 2x leverage, Defiance ETFs is committed to providing investors with leading-edge tools to engage with both bullish and bearish views on the Bitcoin market and MicroStrategy’s strategic role within it.”

The Fund pursues a daily leveraged investment objective, which means that the Fund is riskier than alternatives that do not use leverage because the Fund magnifies the performance of its Underlying Security. It is designed only for sophisticated investors, such as traders and active investors employing dynamic strategies. Investors who do not understand the Funds or do not intend to actively manage and monitor their investments should not buy shares of the Funds.

The Fund MSTX is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking 200% daily (2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund will lose money if the underlying security’s performance is flat, and that it is possible that the Fund will lose money even if the underlying security’s performance decreases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day.

The Fund SMST is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking 200% daily inverse (-2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund will lose money if the underlying security’s performance is flat, and that it is possible that the Fund will lose money even if the underlying security’s performance decreases over a period longer than a single day.An investor could lose the full principal value of his/her investment within a single day.

About Defiance ETFs
Founded in 2018, Defiance is at the forefront of ETF innovation. Our first-mover leveraged single-stock ETFs empower investors to take amplified positions in high-growth companies, providing precise leverage exposure without the need to open a margin account.

Important Disclosures
Investing involves risk. Principal loss is possible. The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information. Please read it carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383 or visiting www.defianceetfs.com/prospectuses

Defiance ETFs LLC is the ETF sponsor. The Funds’ investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).

SMST Key Risks:

MSTR Price Appreciation Risk. As part of the Fund’s inverse investment strategy, the Fund purchases and sells swap contracts that are based on the share price of MSTR common stock (the “Underlying Security”). This strategy subjects the Fund to certain of the same risks as if it shorted shares of the Underlying Security, even though it does not. By virtue of the Fund’s indirect -1.5X exposure to changes in the share price of the Underlying Security, the Fund is subject to the risk that the Underlying Security’s share price increases. If the share price of the Underlying Security increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses.

MSTR Good Performance Risk. MSTR may meet or exceed its publicly announced expectations or guidelines regarding its business, which could potentially lead to a rise in the share price of the Underlying Security.

Bitcoin Positive Performance Risk. MSTR’s significant investment in Bitcoin has become a key driver of its stock price. Any positive movement in the price of Bitcoin, such as reaching new all-time highs, increased institutional adoption, or favorable regulatory developments, directly impacts MSTR’s balance sheet and investor perception. With MSTR holding a substantial amount of Bitcoin, its stock price tends to correlate with Bitcoin’s performance.

Leverage Risk: Leverage may increase the risk of loss and cause fluctuations in the Fund’s portfolio value to have disproportionately large effects or cause the NAV to decline faster than it would otherwise.

Compounding and Market Volatility Risk: Due to compounding, performance over periods greater than a trading day may differ from the underlying security’s performance.

Derivatives and Single Issuer Risk: Derivatives may be more sensitive to market conditions and may amplify risks. Additionally, the focus on a single issuer can lead to increased volatility.

MSTR key risks:

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

Bitcoin Risk. While the Fund will not directly invest in digital assets, it will be subject to the risks associated with Bitcoin by virtue of its investments in options contracts that reference MSTR.

Leverage Risk: Leverage may increase the risk of loss and cause fluctuations in the Fund’s portfolio value to have disproportionately large effects or cause the NAV to decline faster than it would otherwise.

Compounding and Market Volatility Risk: Due to compounding, performance over periods greater than a trading day may differ from the underlying security’s performance.

Derivatives and Single Issuer Risk: Derivatives may be more sensitive to market conditions and may amplify risks. Additionally, the focus on a single issuer can lead to increased volatility.

Distributed by Foreside Fund Services, LLC.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4e5c8ab2-865a-4635-a0c2-a6535224f385

The MIL Network –

January 25, 2025

MIL-OSI: Nokia Corporation: Repurchase of own shares on 29.10.2024

Source: GlobeNewswire (MIL-OSI)

Nokia Corporation
Stock Exchange Release
29 October 2024 at 22:30 EET

Nokia Corporation: Repurchase of own shares on 29.10.2024

Espoo, Finland – On 29 October 2024 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows:

Trading venue (MIC Code)	Number of shares	Weighted average price / share, EUR*
XHEL	1,382,271	4.54
CEUX	263,565	4.55
BATE	–	–
AQEU	–	–
TQEX	–	–
Total	1,645,836	4.54

* Rounded to two decimals

On 25 January 2024, Nokia announced that its Board of Directors is initiating a share buyback program to return up to EUR 600 million of cash to shareholders in tranches over a period of two years. The first phase of the share buyback program started on 20 March 2024. On 19 July 2024, Nokia decided to accelerate the share buybacks by increasing the number of shares to be repurchased during the year 2024. The post-increase repurchases in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 3 April 2024 started on 22 July 2024 and end by 31 December 2024 with a maximum aggregate purchase price of EUR 600 million for all purchases during 2024.

Total cost of transactions executed on 29 October 2024 was EUR 7,474,564. After the disclosed transactions, Nokia Corporation holds 189,427,128 treasury shares.

Details of transactions are included as an appendix to this announcement.

On behalf of Nokia Corporation

BofA Securities Europe SA

About Nokia
At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia Investor Relations
Phone: +358 40 803 4080
Email: investor.relations@nokia.com

Attachment

Daily Report 2024-10-29

The MIL Network –

January 25, 2025

MIL-OSI: Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three Months Ended September 30, 2024

Source: GlobeNewswire (MIL-OSI)

Shreveport, Oct. 29, 2024 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (Nasdaq: HFBL), the holding company of Home Federal Bank, reported net income for the three months ended September 30, 2024, of $941,000 compared to net income of $1.2 million reported for the three months ended September 30, 2023. The Company’s basic and diluted earnings per share were $0.31 for the three months ended September 30, 2024, compared to basic and diluted earnings per share of $0.40 and $0.39, respectively, for the three months ended September 30, 2023.

The decrease in net income for the three months ended September 30, 2024, compared to the same period in 2023, resulted from a decrease in net interest income of $857,000, or 16.2%, and a decrease in non-interest income of $134,000, or 30.9%, partially offset by a decrease in non-interest expense of $177,000, or 4.2%, a decrease in provision for income taxes of $312,000, or 100.6%, a decrease in the provision of credit losses of $223,000. The decrease in net interest income for the three months ended September 30, 2024, compared to the same period in 2023, resulted from an increase in total interest expense of $524,000, or 18.8%, and a decrease in total interest income of $333,000, or 4.1%. The Company’s average interest rate spread was 2.23% for the three months ended September 30, 2024, compared to 2.68% for the three months ended September 30, 2023. The Company’s net interest margin was 2.98% for the three months ended September 30, 2024, compared to 3.37% for the three months ended September 30, 2023.

The following table sets forth the Company’s average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

	For the Three Months Ended September 30,
	2024					2023
	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable	$	466,170		5.87	%	$	498,242		5.79	%
Investment securities		96,749		2.09			113,584		2.18
Interest-earning deposits		25,617		5.20			10,066		6.98
Total interest-earning assets	$	588,536		5.22	%	$	621,892		5.15	%

Interest-bearing liabilities:
Savings accounts	$	82,556		1.61	%	$	78,572		0.38	%
NOW accounts		72,787		1.10			55,900		0.48
Money market accounts		75,216		2.29			108,891		2.26
Certificates of deposit		204,019		4.30			194,785		3.73
Total interest-bearing deposits		434,578		2.92			438,148		2.47
Other bank borrowings		5,989		7.75			8,654		8.39
FHLB advances		—		—			1,138		5.23
Total interest-bearing liabilities	$	440,567		2.98	%	$	447,940		2.47	%

The $134,000 decrease in non-interest income for the three months ended September 30, 2024, compared to the same period in 2023, resulted from an increase in loss on sale of real estate of $220,000, partially offset by an increase in gain on sale of loans of $58,000, an increase in other non-interest income of $26,000, and an increase in income on bank owned life insurance of $2,000.

The $177,000 decrease in non-interest expense for the three months ended September 30, 2024, compared to the same period in 2023, resulted from decreases in advertising expense of $86,000, compensation and benefits expense of $54,000, professional fees of $43,000, loan and collection expense of $32,000, data processing expense of $26,000, amortization of core deposit intangible expense of $20,000, and deposit insurance premium expense of $1,000, partially offset by increases in audit and examination fees of $30,000, other non-interest expense of $28,000, occupancy and equipment expense of $15,000, and franchise and bank shares tax expense of $12,000.

Total assets decreased $9.1 million, or 1.4%, from $637.5 million at June 30, 2024 to $628.4 million at September 30, 2024. The decrease in assets was comprised of decreases in net loans receivable of $16.9 million, or 3.6%, from $470.9 million at June 30, 2024 to $454.0 million at September 30, 2024, real estate owned of $296,000, or 70.8% from $418,000 at June 30, 2024 to $122,000 at September 30, 2024, premises and equipment of $238,000, or 1.3%, from $18.3 million at June 30, 2024 to $18.1 million at September 30, 2024, core deposit intangible of $74,000, or 6.2%, from $1.2 million at June 30, 2024 to $1.1 million at September 30, 2024, and accrued interest receivable of $14,000, or 0.8%, from $1.78 million at June 30, 2024 to $1.76 million at September 30, 2024, partially offset by increases in cash and cash equivalents of $6.1 million, or 17.4%, from $34.9 million at June 30, 2024 to $41.0 million at September 30, 2024, investment securities of $1.4 million, or 1.5%, from $96.0 million at June 30, 2024 to $97.4 million at September 30, 2024, loans-held-for-sale of $535,000, or 30.9%, from $1.7 million at June 30, 2024 to $2.3 million at September 30, 2024, other assets of $224,000, or 16.6%, from $1.3 million at June 30, 2024 to $1.6 million at September 30, 2024, deferred tax asset of $29,000, or 2.5%, from $1.18 million at June 30, 2024 to $1.21 million at September 30, 2024, and bank owned life insurance of $29,000, or 0.4%, from $6.81 million at June 30, 2024 to $6.84 million at September 30, 2024. The increase in investment securities was primarily due to $4.0 million in security purchases and a $1.3 million reduction in unrealized losses on available for sale securities, partially offset by $3.5 million in principal payments. The increase in cash and cash equivalents from $34.9 million at June 30, 2024 to $41.0 million at September 30, 2024 was mainly due to decreases in loans receivable.

Total liabilities decreased $10.6 million, or 1.8%, from $584.7 million at June 30, 2024 to $574.1 million at September 30, 2024. The decrease in liabilities was comprised of decreases in total deposits of $9.4 million, or 1.6%, from $574.0 million at June 30, 2024 to $564.6 million at September 30, 2024, and other borrowings of $1.5 million, or 21.4%, from $7.0 million at June 30, 2024 to $5.5 million at September 30, 2024, partially offset by increases in other accrued expenses and liabilities of $252,000, or 7.9%, from $3.2 million at June 30, 2024 to $3.4 million at September 30, 2024, and advances from borrowers for taxes and insurance of $123,000, or 23.6%, from $521,000 at June 30, 2024 to $644,000 at September 30, 2024,. The decrease in deposits resulted from decreases in certificates of deposit of $17.5 million, or 8.2%, from $214.9 million at June 30, 2024 to $197.3 million at September 30, 2024, and money market deposits of $5.9 million, or 6.9%, from $85.5 million at June 30, 2024 to $79.6 million at September 30, 2024, partially offset by increases in savings deposits of $9.2 million, or 12.0%, from $76.6 million at June 30, 2024 to $85.8 million at September 30, 2024, non-interest deposits of $3.0 million, or 2.3%, from $130.3 million at June 30, 2024 to $133.3 million at September 30, 2024, and NOW accounts of $1.9 million, or 2.8%, from $66.6 million at June 30, 2024 to $68.5 million at September 30, 2024. The Company had no balances in brokered deposits at September 30, 2024 or June 30, 2024.

At September 30, 2024, the Company had $1.9 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $2.0 million on non-performing assets at June 30, 2024, consisting of two commercial non-real estate loans, five single-family residential loans, four home equity line-of-credit loans, and one single-family residence in other real estate owned at September 30, 2024, compared to five single-family residential loans, three commercial non-real estate loans, four home equity line-of-credit loans and three single-family residences in other real estate owned at June 30, 2024. At September 30, 2024 the Company had five commercial non-real-estate loans, one commercial real-estate loan, six single family residential loans, four home-equity line-of-credit loans, and one auto loan classified as substandard, compared to six single family residential loans, five commercial non-real-estate loans, four home equity line-of-credit loans and one auto loan classified as substandard at June 30, 2024. There were no loans classified as doubtful at September 30, 2024 or June 30, 2024.

Shareholders’ equity increased $1.5 million, or 2.8%, from $52.8 million at June 30, 2024 to $54.3 million at September 30, 2024. The increase in shareholders’ equity was comprised of net income for the three month period of $941,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $94,000, proceeds from the issuance of common stock from the exercise of stock options of $19,000, and a decrease in the Company’s accumulated other comprehensive loss of $1.0 million, partially offset by dividends paid totaling $409,000, and stock repurchases of $182,000.

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe”, “expect”, “anticipate”, “estimate”, and “intend”, or future or conditional verbs such as “will”, “would”, “should”, “could”, or “may”. We undertake no obligation to update any forward-looking statements.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Company’s loans, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share and per share data)

	September 30, 2024			June 30, 2024
	(Unaudited)
ASSETS

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $32,743 and $25,505 at September 30, 2024 and June 30, 2024, Respectively)	$	41,044		$	34,948
Securities Available-for-Sale (amortized cost September 30, 2024: $31,977; June 30, 2024: $30,348, Respectively)		29,934			27,037
Securities Held-to-Maturity (fair value September 30, 2024: $56,584; June 30, 2024: $54,450, Respectively)		65,800			67,302
Other Securities		1,633			1,614
Loans Held-for-Sale		2,268			1,733
Loans Receivable, Net of Allowance for Credit Losses (September 30, 2024: $4,703; June 30, 2024: $4,574, Respectively)		454,039			470,852
Accrued Interest Receivable		1,761			1,775
Premises and Equipment, Net		18,065			18,303
Bank Owned Life Insurance		6,839			6,810
Goodwill		2,990			2,990
Core Deposit Intangible		1,125			1,199
Deferred Tax Asset		1,210			1,181
Real Estate Owned		122			418
Other Assets		1,574			1,350

Total Assets	$	628,404		$	637,512

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES

Deposits:
Non-interest bearing	$	133,293		$	130,334
Interest-bearing		431,267			443,673
Total Deposits		564,560			574,007
Advances from Borrowers for Taxes and Insurance		644			521
Other Borrowings		5,500			7,000
Other Accrued Expenses and Liabilities		3,433			3,181

Total Liabilities		574,137			584,709

SHAREHOLDERS’ EQUITY

Preferred Stock – $0.01 Par Value; 10,000,000 Shares Authorized: None Issued and Outstanding		–			–
Common Stock – $0.01 Par Value; 40,000,000 Shares Authorized: 3,129,668 and 3,144,168 Shares Issued and Outstanding at September 30, 2024 and June 30, 2024, Respectively		32			32
Additional Paid-in Capital		41,822			41,739
Unearned ESOP Stock		(379	)		(408	)
Retained Earnings		14,406			14,055
Accumulated Other Comprehensive Loss		(1,614	)		(2,615	)

Total Shareholders’ Equity		54,267			52,803

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	628,404		$	637,512

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (In thousands except share and per share data)

	Three Months Ended
	September 30,
	2024			2023
INTEREST INCOME
Loans, including fees	$	6,895		$	7,274
Investment securities		67			150
Mortgage-backed securities		443			473
Other interest-earning assets		336			177
Total interest income		7,741			8,074

INTEREST EXPENSE
Deposits		3,197			2,592
Federal Home Loan Bank borrowings		—			15
Other bank borrowings		117			183
Total interest expense		3,314			2,790
Net interest income		4,427			5,284

RECOVERY OF CREDIT LOSSES		(223	)		—
Net interest income after recovery of credit losses		4,650			5,284

NON-INTEREST INCOME
Gain on sale of loans		96			38
Loss on sale of real estate		(254	)		(34	)
Income on bank owned life insurance		28			26
Service charges on deposit accounts		391			391
Other income		39			13

Total non-interest income		300			434

NON-INTEREST EXPENSE
Compensation and benefits		2,302			2,356
Occupancy and equipment		564			549
Data processing		219			245
Audit and examination fees		132			102
Franchise and bank shares tax		168			156
Advertising		57			143
Professional fees		117			160
Loan and collection		28			60
Amortization core deposit intangible		74			94
Deposit insurance premium		90			91
Other expenses		260			232
Total non-interest expense		4,011			4,188

Income before income taxes		939			1,530
PROVISION FOR INCOME TAX EXPENSE		(2	)		310

NET INCOME	$	941		$	1,220

EARNINGS PER SHARE
Basic	$	0.31		$	0.40
Diluted	$	0.31		$	0.39

	Three Months Ended September 30,
	2024			2023

Selected Operating Ratios⁽¹⁾:
Average interest rate spread		2.23	%		2.68	%
Net interest margin		2.98	%		3.37	%
Return on average assets		0.59	%		0.73	%
Return on average equity		7.23	%		9.46	%

Asset Quality Ratios⁽²⁾:
Non-performing assets as a percent of total assets		0.31	%		0.28	%
Allowance for credit losses as a percent of non-performing loans		258.46	%		403.96	%
Allowance for credit losses as a percent of total loans receivable		1.03	%		1.00	%

Per Share Data:
Shares outstanding at period end		3,129,668			3,133,351
Weighted average shares outstanding:
Basic		3,058,286			3,028,597
Diluted		3,071,716			3,107,834

(1) Ratios for the three-month period are annualized.
(2) Asset quality ratios are end of period ratios.

The MIL Network –

January 25, 2025

MIL-OSI: Bitdeer Announces Third Quarter 2024 Earnings Conference Call for November 18, 2024

Source: GlobeNewswire (MIL-OSI)

SINGAPORE, Oct. 29, 2024 (GLOBE NEWSWIRE) — Bitdeer Technologies Group (NASDAQ: BTDR) (“Bitdeer” or the “Company”), a world-leading technology company for blockchain and high-performance computing, today announced that it has scheduled its third quarter 2024 earnings conference call and webcast for Monday, November 18, 2024 at 8:00 AM EST. During the call, Bitdeer management will discuss the unaudited financial and operational results for the quarter ended September 30, 2024, followed by a question and answer session.

Bitdeer will release the third quarter results before the call at approximately 7:00 AM EST on November 18, 2024. A copy of the earnings release will be available on the Company’s Investor Relations website at https://ir.bitdeer.com.

Conference Call Information:

Date: November 18, 2024
Time: 8:00 AM EST / 8:00 PM SGT
Participant Call Links:
- Live Webcast: Link
- Participant Call Registration: Link

Participants wishing to join the conference call by phone should register using the Participant Call Registration link provided above. After completing the registration, the participants will receive an email with the necessary details to access the call including dial-in number, passcode, and PIN. To ensure a timely start, the Company encourages all callers to connect about 5 minutes before the scheduled time.

A live and archived webcast of the conference call will be available on the Investors section of Bitdeer’s website at https://ir.bitdeer.com.

About Bitdeer Technologies Group

Bitdeer is a world-leading technology company for blockchain and high-performance computing. Bitdeer is committed to providing comprehensive computing solutions for its customers. The Company handles complex processes involved in computing such as equipment procurement, transport logistics, datacenter design and construction, equipment management, and daily operations. The Company also offers advanced cloud capabilities to customers with high demand for artificial intelligence. Headquartered in Singapore, Bitdeer has deployed datacenters in the United States, Norway, and Bhutan. To learn more, visit https://ir.bitdeer.com/ or follow Bitdeer on X @ BitdeerOfficial and LinkedIn @ Bitdeer Group.

Investors and others should note that Bitdeer may announce material information using its website and/or on its accounts on social media platforms, including X, formerly known as Twitter, Facebook, and LinkedIn. Therefore, Bitdeer encourages investors and others to review the information it posts on the social media and other communication channels listed on its website.

Forward-Looking Statements

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The words “anticipate,” “look forward to,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the section entitled “Risk Factors” in Bitdeer’s annual report on Form 20-F, as well as discussions of potential risks, uncertainties, and other important factors in Bitdeer’s subsequent filings with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof. Bitdeer specifically disclaims any obligation to update any forward-looking statement, whether due to new information, future events, or otherwise. Readers should not rely upon the information on this page as current or accurate after its publication date.

For investor and media inquiries, please contact:

Investor Relations
Orange Group
Yujia Zhai
bitdeerIR@orangegroupadvisors.com

Public Relations
Wachsman
Bee Shin
bitdeer@wachsman.com

The MIL Network –

January 25, 2025

MIL-OSI Submissions: Africa – Shelter Afrique Development Bank (ShafDB) and BRVM sign MOU to Mobilize Capital for Affordable Housing Projects in Africa

Source: Media Fast

Washington, DC, October 29, 2024 – Shelter Afrique Development Bank (ShafDB), the pan-African housing and urban development multilateral bank and the Bourse Régionale des Valeurs Mobilières (BRVM), the regional stock exchange serving the West African Economic and Monetary Union (WAEMU) region, have signed a Memorandum of Understanding (MOU) to mobilize capital for affordable housing projects across Africa.

The MOU establishes a framework for collaboration between the two organizations to address Africa’s growing housing deficit, currently estimated at over 53 million units. The partnership will focus on mobilizing financial resources through innovative instruments such as Green, Sustainability-linked, and Social (GSSS) bonds, as well as Real Estate Investment Trusts (REITs).

Dr. Edoh Kossi Amenounve, CEO of BRVM, and Thierno-Habib Hann, CEO of Shelter Afrique, signed the MOU at a ceremony held in Washington DC on the sidelines of the IMF-World Bank Group Annual Meetings last week.

The collaboration represents a critical step towards enhancing the capacity of African markets to finance sustainable housing development, particularly in the eight WAEMU countries, namely Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

Key Areas of Collaboration

ShafDB and BRVM will work together to design and implement an issuance plan for debt securities on the BRVM regional financial market.

The parties will explore sustainability-linked Bonds by promoting the use of green, gender, Islamic, and diaspora bonds to support housing finance within the WAEMU region and mobilize capital and encourage capital investment in the community housing sector via Real Estate Investment Funds (REITs).

Both parties will also exchange knowledge, provide technical assistance, and collaborate on joint research and publications to promote their common objectives.

Speaking at the signing ceremony, Thierno-Habib Hann emphasized the significance of the partnership in addressing Africa’s housing crisis.

“This partnership with BRVM is a significant milestone for Shelter Afrique Development Bank. With Africa’s housing deficit now exceeding 53 million units, we need to scale our efforts rapidly. This MOU offers us the opportunity to mobilize the capital necessary to finance affordable and sustainable housing projects across the continent,” Hann said.

Commenting on the partnership’s potential impact, Dr. Edoh Kossi Amenounve said, “BRVM is proud to partner with Shelter Afrique Development Bank (ShafDB) to boost investment flows into Africa’s housing market. This collaboration is aligned with our mission to promote capital markets and support sustainable development within the WAEMU region.”

Note:

About Shelter Afrique Development Bank:

Shelter Afrique Development Bank (ShafDB) is the Pan-African Multilateral Development Bank (MDB) dedicated to promoting and financing sustainable green housing, urban development and related infrastructure. It operates through a shareholding of 44 African governments and two institutional shareholders: the African Development Bank (AfDB) and the African Reinsurance Corporation (Africa-Re).

The institution is involved in financing housing and related infrastructure across the value chain, both on the demand and supply sides, through its four (4) business lines: Financial Institutions Group (FIG), the Project Finance Group (PFG), the Sovereign and Public-Private partnerships (PPP) Group, and the Fund Management Group (FMG).

About BRVM

The Bourse Régionale des Valeurs Mobilières (BRVM) is the regional stock exchange serving the WAEMU zone. It facilitates access to capital markets for companies and governments across eight West African countries, promoting investment, economic growth, and regional integration. BRVM is committed to enhancing financial inclusion and sustainable development through innovative market solutions.

MIL OSI – Submitted News –

January 25, 2025

MIL-OSI Submissions: Tech – AST Reygar Unveils New User-Friendly Website to Streamline Access to Industry-Leading Vessel Monitoring Solutions

Source: AST Reygar

Revamped Website Puts Spotlight on Award-Winning BareFLEET System,
Enhancing Support for Maritime Efficiency and Compliance

AST Reygar, a leader in vessel monitoring and fleet management solutions, is excited to announce the launch of its redesigned, user-friendly website, now live at www.ast-reygar.com. The revamped website enhances accessibility and provides a streamlined platform for industry professionals to explore AST Reygar’s cutting-edge solutions, including its award-winning fleet monitoring system, BareFLEET.

Built with a focus on simplicity and ease of navigation, the new AST Reygar website offers an intuitive experience, allowing users to seamlessly access information on the company’s advanced technologies, case studies, latest news and insights, and comprehensive customer support resources

BareFLEET: Industry-Leading Vessel Monitoring for Operational Excellence

At the heart of AST Reygar’s offering is BareFLEET, an award winning, remote monitoring and reporting system designed to optimise fleet performance, reduce operating costs, and help to support informed decision-making. Trusted by operators globally, BareFLEET provides unparalleled insights into fuel consumption, engine health, vessel motion monitoring, and emissions management, enhancing vessel efficiency and reducing environmental impacts.

“Through BareFLEET, our clients are equipped with real-time data that’s instrumental in improving operational efficiency and compliance. With the launch of our new website, we’re making it even easier for users to access the tools and support they need to operate their fleets effectively.” Said Daniel Clark, General Manager – Director at AST Reygar.

A New Digital Experience for Clients and Partners
The new AST Reygar website reflects the company’s commitment to providing exceptional service to the maritime sector, by offering easy access to product information, client success stories, and resources for technical support. Features include:

Detailed Product Pages: Comprehensive overviews of AST Reygar’s offerings, including BareFLEET.

Client Case Studies: Real-world examples demonstrating how AST Reygar solutions support fleet efficiency and environmental compliance.

Enhanced Support Centre: Dedicated resources and direct contact options to ensure clients have access to responsive, ongoing support.

About AST Reygar

AST Reygar is a leading prover of remote monitoring and fleet management solutions, providing maritime operators worldwide with innovative tools that improve efficiency, safety, and compliance. With BareFLEET as its flagship system, AST Reygar continues to deliver award-winning technology that empowers clients to make data-driven decisions and promotes a sustainable future for maritime operations.

AST Reygar is part of AST Networks, and a leading provider of innovative solutions for the maritime industry, dedicated to enhancing fuel efficiency and operational performance through cutting-edge technology. 

For more information, please visit www.ast-reygar.com

MIL OSI – Submitted News –

January 25, 2025

MIL-OSI Submissions: ENERGY SECTOR – OPINION: There’s not a second to lose if the UK is to build a world-class battery industry

Source and Opinion by Richard Moore, Battery Expert at Greenpower Park

The Faraday Institution’s latest report on UK Gigafactories finds that they could support 35,000 jobs by 2040, along with a further 65,000 in the supply chain, but warns that the UK is not moving quickly enough. It’s time to put words into action and build the manufacturing capacity that we need to ensure that the UK not only catches up but becomes a world leader, says Richard Moore, Greenpower Park’s Battery Expert

A question that used to be asked in every job interview was ‘where do you see yourself in five years? The interviewee almost certainly had a detailed list of aspirations to reel off in response If the same question was asked of the UK PLC in relation to the number of gigafactories it will have after that same period of time, the answer would be much shorter and to the point: ‘not enough.’

That’s a massive problem, because as the Faraday Institution’s ‘UK electric vehicle and battery production potential to 2040’ report makes very clear, the UK is rapidly falling far behind in the global race to build these strategically important assets that are vital to making transport more sustainable, reducing emissions, improving air quality, and delivering net-zero commitments.

With each gigafactory taking some five years to build1, there’s no time to waste, and in determining the way forward we learn a hard lesson learnt from the past: the lithium-ion battery was invented in the UK but the strategic importance of manufacturing them in the UK was overlooked. This is why today we have just one operational gigafactory which has a capacity of less than 2GWh. And by 2030 – the date that the new Labour government has pledged to ban sales of combustion engine vehicles, the UK is expected to have only three1 up and running.

That’s around half of what’s needed because the UK’s demand is expected to reach almost 110GWh a year in 2030 – the equivalent of six large gigafactories running at 90% capacity1. That also compares very unfavourably to the 40 expected to be operational in Europe by that time1, and more than 400 worldwide2.

Even if we broke ground today, the additional sites we need in the UK would only just be ramping up production volumes by the time the last petrol and diesel vehicles will be driven out of the showrooms. Which means that many of the EVs manufactured in the UK will use imported cells, while at the same time the UK will not be in a position to export these highly valuable items to other countries. Compounding the problem are the requirements of Rules of Origin regulations that from 2027 will require EVs made here to use cells manufactured in the UK or Europe to avoid new tariffs when sold in Europe.

And of course, as well as road transport, there will be huge demand for the cells needed to electrify other industries such as the aviation and marine sectors. It is absolutely vital to our future that we have a world-class battery industry here in the UK, together with a robust, transparent and sustainable supply chain to serve it. And we must be cognizant of the fact that while the UK is forecast to make only 53 per cent of the capacity it will need in 20301, the gulf is expected to grow, with only 29% capacity by 2040, by which time we’ll need some 200GWh of supply1.

A true centre of excellence in electrification

The transition from internal combustion engines running on fossil fuels to e-mobility powered by renewables represents nothing less than a paradigm shift, and we simply cannot afford to squander the opportunity to place the UK as the driving force behind it. Greenpower Park, the UK’s Centre of Electrification and Clean Energy, is a trailblazing centre of excellence for electrification, battery technology and manufacturing. With the West Midlands Gigafactory as its anchor tenant, it has unrivalled access to the most highly skilled workforce in the country.

This ground-breaking location is the first of its kind, offering an all-in-one solution for battery research, industrialisation, manufacturing, testing, recycling and electrified logistics designed to foster the UK’s growing battery ecosystem. Based in the country’s automotive skills heartland, it is at the epicentre of the country’s shift to electrification and is synonymous with both electric vehicle and battery manufacturing.

The automotive and manufacturing industries run through the blood of generations of the workforce in the West Midlands and will continue to do so in the future with the creation of Greenpower Park. Located closer to almost every vehicle manufacturer’s plant than any other proposed gigafactory in the UK, it is also adjacent to the world-renowned UK Battery Industrialisation Centre as well as nine universities and their 220,000 students. Greenpower Park represents a unique collaboration between academia, industry, government and international partners to create a complete ecosystem purpose-designed to boost accelerated development, growth and innovation across the e-mobility sector.

Tempus fugit: action this day

We believe that we can play a pivotal role in helping overcome the battery cell demand issue that’s coming in the next decade and beyond. But to do that we need to act now, and that involves laying out incentive packages to accelerate conversations with potential investors, and to enable us to achieve our goals within the battery manufacturers’ demanding investment timescales – and the vehicle manufacturers’ product development cycles.

We’ve put all the pieces in place to enable that to happen, and we are the UK’s only proposed Gigafactory site with Investment Zone Status. This offers a compelling package of incentives for investors, including Stamp Duty Land Tax Relief, 100 per cent Business Rate Relief on newly occupied premises, 100 per cent first year Capital Allowances for expenditure on new plant and machinery, zero rate employer national insurance contributions for 36 months for each new job created, enhanced structures and buildings allowance, and additional support for supply chain and skills development, innovation, and R&D. We strongly believe that with inward investment of £2.5bn we can build our state-of-the-art Gigafactory and create 6,000 highly skilled jobs.

We’re also highly encouraged by the new UK government’s pledge to directly invest in industry via the National Wealth Fund, reward firms that build their manufacturing supply chains in the UK via the British Jobs Bonus, and, in short, ‘secure the future of Britain’s automotive industry.’3 We urge the Prime Minister to deliver on those promises and help us to play our part in full.

The UK has always been a leader in designing and developing cutting-edge technologies, but hasn’t always fulfilled its potential in successfully mass-producing them. With battery cells and Gigafactories we have an unprecedented opportunity to change this. But we must act now if we are to seize it. Five years from now, we want the UK to be a globally competitive supplier of battery cells and securing the clean energy supply chain for the future, not asking why we allowed ourselves to fall further behind.

1 https://www.faraday.ac.uk/wp-content/uploads/2024/09/Gigafactory-Report_2024_final_17Sept2024.pdf

2 https://source.benchmarkminerals.com/article/over-400-gigafactories-in-2030-pipeline-but-overcapacity-fears-loom

3 https://labour.org.uk/change/make-britain-a-clean-energy-superpower/

MIL OSI – Submitted News –

January 25, 2025

MIL-OSI USA: Durbin Delivers Opening Statement During Senate Judiciary Committee Field Hearing In Chicago On Reducing Prescription Drug Costs

US Senate News:

Source: United States Senator for Illinois Dick Durbin
10.29.24
CHICAGO – U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, today delivered an opening statement at the Senate Judiciary Committee field hearing in Chicago, Illinois, entitled “Reducing Prescription Drug Prices: How Competition Can Make Medications Affordable for Patients.” The hearing includes two witness panels, including Members of Congress from Illinois and advocates for prescription drug pricing reform, to examine recent legislative successes to address anti-competitive tactics that make medications unaffordable for patients.
Key Quotes:
“Today the Committee will examine an issue on the minds of many in Illinois and across the country: the high price of prescription drugs. It is a scandalous situation in America. People in the United States pay the highest prescription drug prices in the world—on average, four times more than people in similar countries pay for brand-name medications.”
“For example: [when] the blood thinner Eliquis entered the market in 2013, it cost $3,100 annually in the U.S. Same drug for sale in Japan [was] $1,000. And, over the past decade, the price in the U.S. has more than doubled, from $3,100 to $7,100. Meanwhile, in Japan, the price has dropped… Why? For years, Big Pharma has abused our patent system to obtain monopolies on their medications, so they can charge these sky-high prices.”
“At the same time, they have spent billions of dollars to fill the airwaves with ads so patients tell their doctors they need drugs like Eliquis so they can go skiing, fishing, and whitewater rafting. By fueling demand for expensive medications that are walled-off from competition by clever patent schemes, Big Pharma has made American patients their profit engine.”
“Thankfully, this Administration and Democrats in Congress decided to do something about it. In 2022, Congress passed, and President Biden signed into law the Inflation Reduction Act. Not a single Republican voted for it. Under this law, we have capped the price of insulin at $35 per month, saving 50,000 seniors in Illinois approximately $500 a year. We have made vaccines under Medicare free. When the shingles or RSV vaccines can cost up to $300 per dose, this change creates real savings for 1.4 million seniors in Illinois. Starting in January, there will be a $2,000 annual cap on out-of-pocket costs for seniors—meaning, no matter how expensive your medications are, you will not pay more than $2,000 in co-pays per year.”
“In August, the Biden-Harris Administration negotiated with Big Pharma to lower prices for 10 of the most expensive drugs under Medicare, resulting in price savings of up to 79 percent… As a result of this negotiation, nine million seniors will save a total of $1.5 billion in annual out-of-pocket costs—including nearly 300,000 seniors in Illinois who take one of these ten drugs. Remember Eliquis? Thanks to this new law, Medicare was able to permanently cut its price in half—taking nearly $300 off the monthly price tag—for more than 100,000 seniors in Illinois.”
“But just as these historic savings are starting to take effect, there are real threats to our progress. Eight pharmaceutical companies raced to federal courthouses to stop this price negotiation. And former-President Trump and his Republican allies want to repeal this provision all together.”
“Too often, the prices Big Pharma charges do not reflect scientific breakthroughs but, rather, manipulation by its lawyers and marketers. In fact, the top 10 best-selling drugs in 2021 were covered by an average of 42 active patents that block competition and create windfall profits.”
“The Judiciary Committee has taken a leading role in addressing Big Pharma’s schemes. Last year, the Committee unanimously reported five bipartisan bills that addressed the industry’s anticompetitive tactics. This includes my bill with Senator Tillis to improve information sharing between the FDA and Patent Office to prevent gamesmanship. Congress needs to pass these bills into law.”
“Drugs are not effective in treating disease if a patient cannot afford to buy them. Our hearing today will explore how legislation like the Inflation Reduction Actand the Judiciary Committee bills can help ensure every patient can access lifesaving medications.”

Video of Durbin’s opening statement is available here.
Audio of Durbin’s opening statement is available here.
Footage of Durbin’s opening statement is available here for TV Stations.
The United States has the highest prescription drug prices in the developed world, on average nearly four times higher than what other countries pay for some of the most common brand-name medications. Despite claims that these prices are necessary to fund research and development into the next generation of drugs, research suggests that the majority of innovation is driven by smaller companies, as well as taxpayer funding through the National Institutes of Health. The Committee has jurisdiction over competition issues and the intellectual property system, which play critical roles in incentivizing true innovation and protecting a healthy market that keeps prices for prescription drugs within reach of the patients that need them.
Durbin, Senate Democrats, and the Biden-Harris Administration have taken numerous steps to lower the costs of prescription drugs. Democrats’ Inflation Reduction Actprovided the Administration the authority to negotiate drug prices with Big Pharma, which has already resulted in price reduction of up to 79 percent for 10 of the most expensive and frequently-dispensed prescription drugs for seniors.
Earlier this Congress, a package of bills advanced unanimously out of the Committee to lower prescription drug prices and are awaiting a vote in the full Senate, including the Interagency Patent Coordination and Improvement Act introduced by U.S. Senators Dick Durbin (D-IL) and Thom Tillis (R-NC).
Additionally, Durbin held a full committee hearing in May that scrutinized pharmaceutical companies’ abuse of the Orange Book and examined prescription drug prices, competition, and how to ensure medications are accessible and affordable for patients.
-30-

MIL OSI USA News –

January 25, 2025

MIL-OSI USA: Durbin Questions Witnesses During Senate Judiciary Committee Field Hearing In Chicago On Reducing Prescription Drug Costs

US Senate News:

Source: United States Senator for Illinois Dick Durbin
10.29.24
CHICAGO – U.S. Senate Majority Whip Dick Durbin (D-IL), Chair of the Senate Judiciary Committee, today questioned witnesses during the Senate Judiciary Committee field hearing in Chicago, Illinois, entitled “Reducing Prescription Drug Prices: How Competition Can Make Medications Affordable for Patients.” The hearing included two witness panels, including Members of Congress from Illinois and advocates for prescription drug pricing reform, to examine recent legislative successes to address anti-competitive tactics that make medications unaffordable for patients.
Durbin first questioned Dr. Anthony D. Douglas II, General Surgery Resident at the University of Chicago, about the Medicare negotiation of Jardiance, a medication to treat people with diabetes, including his father. Jardiance’s manufacturer steadily raised the drug’s price over the last five years, from around $450 to nearly $600 for a 30-day supply. Under the Inflation Reduction Act, Medicare is finally able to negotiate the price it pays for certain prescription drugs, including Jardiance. And the Biden-Harris Administration was able to negotiate the price for Jardiance down to $197 per month—a 66 percent discount.
“Tell me what that price reduction means to your patients?” Durbin asked.
Dr. Douglas responded that having this necessary medicine reduced in price will mean “saving lives” thanks to the Biden-Harris Administration.
Durbin then asked Dr. Douglas about direct-to-consumer (DTC) drug advertising. The pharmaceutical industry spends $6 billion per year to flood the airwaves with direct-to-consumer drug ads. Durbin and Senator Chuck Grassley (R-IA) introduced the Drug-price Transparency for Consumers (DTC) Act, a bill that would require price disclosures on advertisements for prescription drugs, in order to empower patients and reduce excess spending on medications.
“It strikes me that there are a handful of drugs which we are bombarded with when it comes to advertising—you cannot watch a football game or anything on your television without getting an ad for a drug… The fact that we can pronounce and even spell Xarelto is proof positive that we have been trained by these ads. I am assuming and tell me if I’m wrong, that the pharmaceutical companies basically decided if we can convince the ultimate consumer to go into the doctor’s office and say, ‘I need this’ or whatever it happens to be, that the doctor is going to prescribe it as opposed to questioning whether or not it is necessary or if there is an affordable generic. Is that true?” Durbin asked.
Dr. Douglas responded that he believes that is the drug companies’ strategy when targeting consumers through DTC ads. He continued to say, “Not only do they advertise directly to physicians to prescribe the medications but also patients to go into the clinics and hospitals to ask,” for example, Ozempic.
Durbin also asked Dr. Michael Sandsmark, Director of Pharmacy, Iroquois Memorial Hospital (IMH), about the long wait lines at pharmacies, including at Walgreens, and even closures.
Dr. Sandsmark responded that there, “is a lot of burnout” among pharmacists right now and corporations are having trouble finding staff. Dr. Sandsmark also commented on the rigorous and expensive price of pharmacy school and training.
Durbin then asked Rachel Sachs, Professor of Law, Washington University in St. Louis, and Kwame Raoul, Attorney General, State of Illinois, about pharmacy benefit managers (PBMs)—middlemen that manage drug benefits for insurance plans.
Dr. Sachs responded, “we should think broadly about opportunities at the federal level and state level for PBM reform.” In February 2024, Attorney General Raoul along with 38 other attorneys general, sent a letter to Congress expressing support for reforming how PBMs operate. In June, he joined an amicus brief asking the U.S. Supreme Court to take up a case addressing the states’ authority to regulate PBMs.
Durbin then asked Dr. Sachs about claims from the pharmaceutical industry and its allies that the Inflation Reduction Act’s common-sense reform to enable Medicare to negotiate for lower prices will “freeze innovation,” and potentially prevent new drugs from coming to the market. The cancer drug Keytruda had $25 billion in sales last year. The revenue for this single medication is on par with what Mastercard or the McDonald’s Corporation earn per year.
“How can it possibly be that a penny less in profit to Big Pharma will stifle innovation?” Durbin asked.
Dr. Sachs responded, “in my view, what we really care about is the value of innovation to patients. It is about delivering real [and] new clinical value and reforms that preserve and protect that value rather than the amount of innovation are what matters.”
Durbin then asked Dr. Douglas about pharmaceutical companies often spending more in sales and marketing than on research and development. Dr. Douglas responded he is aware of the uneven spending. He continued to say we need to put profits over people. In 2020, Johnson & Johnson spent nearly twice as much on sales and marketing—$22 billion—as it spent on R&D.
Video of Durbin’s questions in Committee is available here.
Audio of Durbin’s questions in Committee is available here.
Footage of Durbin’s questions in Committee is available here for TV Stations.
The United States has the highest prescription drug prices in the developed world, on average nearly four times higher than what other countries pay for some of the most common brand-name medications. Despite claims that these prices are necessary to fund research and development into the next generation of drugs, research suggests that the majority of innovation is driven by smaller companies, as well as taxpayer funding through the National Institutes of Health. The Committee has jurisdiction over competition issues and the intellectual property system, which play critical roles in incentivizing true innovation and protecting a healthy market that keeps prices for prescription drugs within reach of the patients that need them.
Durbin, Senate Democrats, and the Biden-Harris Administration have taken numerous steps to lower the costs of prescription drugs. Democrats’ Inflation Reduction Actprovided the Administration the authority to negotiate drug prices with Big Pharma, which has already resulted in price reduction of up to 79 percent for 10 of the most expensive and frequently-dispensed prescription drugs for seniors.
Earlier this Congress, a package of bills advanced unanimously out of the Committee to lower prescription drug prices and are awaiting a vote in the full Senate, including the Interagency Patent Coordination and Improvement Act introduced by U.S. Senators Dick Durbin (D-IL) and Thom Tillis (R-NC).
Additionally, Durbin held a full committee hearing in May that scrutinized pharmaceutical companies’ abuse of the Orange Book and examined prescription drug prices, competition, and how to ensure medications are accessible and affordable for patients.
-30-

MIL OSI USA News –

January 25, 2025

MIL-OSI Australia: Internationally renowned mental health researcher Professor Helen Christensen AO named NSW Scientist of the Year

Source: New South Wales Premiere

Published: 30 October 2024

Released by: The Premier, Minister for Innovation, Science and Technology

Scientia Professor Helen Christensen AO from UNSW Sydney and the Black Dog Institute is being recognised as the NSW Scientist of the Year in the 2024 Premier’s Prizes for Science & Engineering.

Professor Christensen is one of 10 exceptional researchers, innovators, and educators being honoured at the Premier’s Prizes for Science & Engineering, held at Government House in Sydney tonight.

Professor Christensen’s selection as Scientist of the Year is in recognition of her pioneering work in digital mental health research, which has significantly influenced mental health care practice both in Australia and internationally.

In 2000, she developed the digital intervention program, MoodGYM, to reduce depression in young people, which has been used by millions of people across more than 160 countries.

She served as the Executive Director and Chief Scientist at the Black Dog Institute from 2011 to 2021, while her work creating a model of suicide prevention has been incorporated into national and state suicide prevention plans.

She will receive a trophy and $60,000 in prize money.

Nine category winners are also being announced tonight, each receiving a trophy and $5,000 in prize money:

Excellence in Mathematics, Earth Sciences, Chemistry or Physics
Professor Susan Coppersmith, UNSW Sydney
Excellence in Biological Sciences (Ecological, environmental, agricultural and organismal) Distinguished Professor Ian Paulsen, Macquarie University
Excellence in Medical Biological Sciences (Cell and molecular, medical, veterinary and genetics)
Professor Stuart Tangye, Garvan Institute of Medical Research
Excellence in Engineering or Information and Communications Technologies
Distinguished Professor Willy Susilo, University of Wollongong
NSW Early Career Researcher of the Year (Biological Sciences)
Dr Ira Deveson, Garvan Institute of Medical Research
NSW Early Career Researcher of the Year (Physical Sciences) –
Dr. Jiayan Liao, University of Technology Sydney
Leadership in Innovation in NSW
Distinguished Professor Karu Esselle, University of Technology Sydney
Innovation in NSW Public Sector Science and Engineering
Dr Annette Cowie, NSW Department of Primary Industries and University of New England
Innovation in Science, Technology, Engineering or Mathematics Teaching in NSW
Jodie Attenborough, Tottenham Central School

Full details of all winners can be found at:

NSW Premier’s Prizes for Science & Engineering | Chief Scientist

Premier Chris Minns said:

“These awards are about recognising and thanking our state’s most outstanding scientists, engineers, and teachers.

“Professor Christensen’s work has helped millions of people worldwide.

“Her online self-help courses to help address common mental health disorders have been pioneering.

“Mental health support is vital for so many people. Professor Christensen has improved support for people in NSW, and people around the world.

“Mental health is one of the pressing challenges of our time, and Professor Christensen’s innovations have made an important impact.”

Minister for Innovation, Science and Technology Anoulack Chanthivong said:

“Tonight is the NSW Government’s chance to recognise some of the leaders from NSW’s world-class research and innovation community.

“We celebrate not only research excellence, but visionary work that is driving the establishment of new high-tech companies to tackle some of our state’s most difficult problems.”

NSW Chief Scientist & Engineer Hugh Durrant-Whyte said:

“Tonight, we celebrate leading thinkers in areas as diverse as quantum physics, synthetic biology, immunology, cybersecurity and satellite telecommunications.

“We acknowledge the work of established senior academics as well as lauding the contributions of our best early career researchers.

“My congratulations to everyone honoured tonight, and especially to 2024 Scientist of the Year, Professor Helen Christensen, for her profound impact in the critically important area of mental health.”

2024 NSW Scientist of the Year Professor Helen Christensen said:

“I’m deeply honoured to receive this award from the NSW Government.

“It’s exciting to see this recognition for scientific work in mental health—an issue now seen globally as the leading health concern, even surpassing cancer, obesity and COVID.

“Mental health science has the power to transform lives. We’re at a tipping point, where advancements in genetics, AI, and software engineering, are reshaping our understanding of mental illness, the impact of societal factors, and how technology delivers proven treatments to those who need them.”

MIL OSI News –

January 25, 2025

MIL-OSI Australia: New partnership a boost for First Nations tourism

Source: Minister for Trade

Today the Albanese Labor Government is announcing a historic new Partnership to support greater participation and economic opportunities for First Nations people and businesses in Australia’s tourism industry.

The First Nations Visitor Economy Partnership, comprising First Nations tourism industry representatives from every state and territory, will provide leadership and guidance on respectfully embedding Australia’s rich cultural heritage in our tourism offerings.

Importantly, the Partnership will be tasked with investigating and establishing a permanent First Nations national tourism peak body which will provide guidance and strategic support to grow this critical sector.

The Partnership will be funded for an initial two years through the National Indigenous Australians Agency’s Indigenous Advancement Strategy.

First Nations industry representatives co-designed the Partnership in collaboration with the Australian Trade and Investment Commission (Austrade), the National Indigenous Australians Agency (NIAA), Tourism Australia and state and territory governments.

The Albanese Labor Government understands the importance of First Nations tourism in Australia and has been investing to increase economic opportunities for First Nations people in this sector.

This includes the Indigenous Tourism Fund which is supporting First Nations people in the travel and tourism industry through grants, mentoring and co-investment in strategic projects.

The First Nations Tourism Mentoring Program is connecting businesses with skilled, experienced and culturally respectful tourism industry specialists who are providing one-on-one guidance, advice and support.

These programs build on support provided by state and territory governments, such as Tourism Northern Territory’s Aboriginal Tourism Development Support Grant Program, which is co-funded by the Australian Government and helps to develop Aboriginal cultural tourism experiences and tourism product.

Quotes attributable to Senator the Hon Don Farrell, Minister for Trade and Tourism:

“First Nations tourism offers an important avenue for First Nations people to stay on country, preserve their culture and knowledge while providing economic opportunities.

“I recently had the privilege of attending the graduation of the National Indigenous Training Academy’s class of 2024 on Anangu country who expressed to me the importance of this industry and their excitement of sharing their culture with visitors. With graduates like these, alongside the support of this new national body, the future is very bright for First Nations tourism in Australia.

“We know that domestic and international visitors are increasingly seeking unique First Nations experiences as part of their travels.

“This presents great opportunities for First Nations tourism and job creation in Australia’s regions and First Nations communities.”

Quotes attributable to Senator the Hon Malarndirri McCarthy, Minister for Indigenous Australians:

“First Nations tourism provides opportunities to share the world’s oldest living culture with travellers from around the world, while empowering First Nations people through employment and business prospects.

“The First Nations Visitor Economy Partnership will advocate for the sector and
support the growth of First Nations tourism businesses to provide unique experiences for domestic and international visitors, driving more economic activity in the regions and local communities.

“The First Nations Visitor Economy Partnership demonstrates the Albanese Government’s commitment to working with First Nations people and in partnership with state and territory governments to advance self-determination and economic empowerment.

“The First Nations tourism sector has been calling for support to establish a national peak tourism body and the Albanese Government has listened.”

MIL OSI News –

January 25, 2025

MIL-OSI: Northeast Bank Reports First Quarter Results and Declares Dividend

Source: GlobeNewswire (MIL-OSI)

PORTLAND, Maine, Oct. 29, 2024 (GLOBE NEWSWIRE) — Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of $17.1 million, or $2.11 per diluted common share, for the quarter ended September 30, 2024, compared to net income of $15.2 million, or $2.01 per diluted common share, for the quarter ended September 30, 2023.

The Board of Directors declared a cash dividend of $0.01 per share, payable on November 26, 2024, to shareholders of record as of November 12, 2024.

“With $859.8 million of loan generation from our National Lending Division, we had our second largest quarterly loan volume in the Bank’s history, consisting of $732.9 million of purchases and $126.9 million of originations,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division portfolio grew by $742.2 million, or 27.6%, over June 30, 2024. Our small balance SBA 7(a) program with Newity LLC as our loan service provider has gained real traction. For the quarter, we originated $82.4 million, compared to $40.2 million for the quarter ended June 30, 2024 and $9.7 million for the quarter ended September 30, 2023. During the current quarter we sold $63.1 million of the guaranteed portion of our SBA loans, compared with $26.8 million for the quarter ended June 30, 2024 and $5.3 million for the quarter ended September 30, 2023. We are reporting earnings of $2.11 per diluted common share, a return on average equity of 17.5%, and a return on average assets of 2.1%.”

As of September 30, 2024, total assets were $3.94 billion, an increase of $807.7 million, or 25.8%, from total assets of $3.13 billion as of June 30, 2024.

1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the three months ended September 30, 2024:

	Loan Portfolio Changes
	September 30, 2024 Balance		June 30, 2024 Balance		Change ($)			Change (%)
	(Dollars in thousands)
National Lending Purchased	$	2,420,883	$	1,708,551	$	712,332		41.69	%
National Lending Originated		1,011,374		981,497		29,877		3.04	%
SBA National		66,919		48,405		18,514		38.25	%
Community Banking		21,426		22,704		(1,278	)	(5.63	%)
Total	$	3,520,602	$	2,761,157	$	759,445		27.50	%

Loans generated by the Bank’s National Lending Division for the quarter ended September 30, 2024 totaled $859.8 million, which consisted of $732.9 million of purchased loans at an average price of 90.7% of unpaid principal balance, and $126.9 million of originated loans.

An overview of the Bank’s National Lending Division portfolio follows:

	National Lending Portfolio
	Three Months Ended September 30,
	2024									2023
	Purchased			Originated			Total			Purchased			Originated			Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	807,733		$	126,893		$	934,626		$	63,695		$	68,042		$	131,737
Initial net investment basis (1)		732,893			126,893			859,786			52,346			68,042			120,388

Loan returns during the period:
Yield		8.83	%		9.31	%		9.00	%		8.99	%		10.03	%		9.40	%
Total Return on Purchased Loans (2)		8.84	%		N/A			8.84	%		9.04	%		N/A			9.04	%

Total loans as of period end:
Unpaid principal balance	$	2,644,390		$	1,011,374		$	3,655,764		$	1,693,627		$	958,232		$	2,651,859
Net investment basis		2,420,883			1,011,374			3,432,257			1,516,379			958,232			2,474,611

^{(1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).}
^{(2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.”}

2. Deposits increased by $785.5 million, or 33.6%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $785.4 million, or 60.1%. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $712.6 million, and Community Banking Division time deposits, which increased by $52.9 million compared to June 30, 2024.

3. Federal Home Loan Bank (“FHLB”) advances decreased by $6.1 million, or 1.8%, from June 30, 2024. The decrease was attributable to net paydowns on amortizing advances.

4. Shareholders’ equity increased by $15.9 million, or 4.2%, from June 30, 2024, primarily due to net income of $17.1 million and stock-based compensation of $1.8 million, partially offset by the cancelation of restricted stock to cover tax obligations on restricted stock vests, which had a $3.2 million impact on shareholders’ equity.

Net income increased by $1.9 million to $17.1 million for the quarter ended September 30, 2024, compared to net income of $15.2 million for the quarter ended September 30, 2023.

1. Net interest and dividend income before provision for credit losses increased by $1.9 million to $39.0 million for the quarter ended September 30, 2024, compared to $37.1 million for the quarter ended September 30, 2023. The increase was primarily due to the following:

An increase in interest income earned on loans of $6.2 million, primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios and higher rates earned on the SBA portfolio;
An increase in interest income earned on short-term investments of $821 thousand, due to higher average balances and higher rates earned; and
A decrease in FHLB borrowings interest expense of $2.1 million, primarily due to lower average balances; partially offset by,
An increase in deposit interest expense of $7.3 million, primarily due to higher average balances as well as higher rates in interest-bearing deposits.

The following table summarizes interest income and related yields recognized on the loan portfolios:

	Interest Income and Yield on Loans
	Three Months Ended September 30,
	2024						2023
	Average		Interest				Average		Interest
	Balance (1)		Income		Yield		Balance (1)		Income		Yield
	(Dollars in thousands)
Community Banking	$	22,409	$	370	6.55	%	$	27,149	$	438	6.42	%
SBA National		59,745		2,419	16.06	%		26,257		786	11.91	%
National Lending:
Originated		997,397		23,408	9.31	%		960,629		24,219	10.03	%
Purchased		1,758,801		39,141	8.83	%		1,489,394		33,671	8.99	%
Total National Lending		2,756,198		62,549	9.00	%		2,450,023		57,890	9.40	%
Total	$	2,838,352	$	65,338	9.13	%	$	2,503,429		59,114	9.39	%

^{(1) Includes loans held for sale.}

The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended September 30, 2023, transactional income decreased by $776 thousand for the quarter ended September 30, 2024, and regularly scheduled interest and accretion increased by $6.1 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended September 30, 2024 was 8.8%, a decrease from 9.0% for the quarter ended September 30, 2023. The following table details the total return on purchased loans:

	Total Return on Purchased Loans
	Three Months Ended September 30,
	2024				2023
	Income		Return (1)		Income		Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	37,160	8.38	%	$	31,030	8.29	%
Transactional income:
Release of allowance for credit losses on purchased loans		64	0.01	%		180	0.05	%
Accelerated accretion and loan fees		1,981	0.45	%		2,641	0.70	%
Total transactional income		2,045	0.46	%		2,821	0.75	%
Total	$	39,205	8.84	%	$	33,851	9.04	%

^{(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.}

2. Provision for credit losses increased by $232 thousand to $422 thousand for the quarter ended September 30, 2024, compared to $190 thousand in the quarter ended September 30, 2023. The increase was primarily related to the increase in originated loans during the quarter ended September 30, 2024.

3. Noninterest income increased by $3.3 million for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023, primarily due to an increase in gain on sale of SBA loans of $3.1 million, due to the sale of $63.1 million in SBA loans during the quarter ended September 30, 2024 as compared to the sale of $5.3 million during the quarter ended September 30, 2023.

4. Noninterest expense increased by $2.3 million for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023, primarily due to the following:

An increase in salaries and employee benefits expense of $1.5 million, primarily due to increases in regular and stock compensation expense; and
An increase in loan expense of $643 thousand primarily related to increased expenses in connection with the origination of SBA 7(a) loans.

5. Income tax expense increased by $754 thousand to $7.9 million, or an effective tax rate of 31.6%, for the quarter ended September 30, 2024, compared to $7.2 million, or an effective tax rate of 32.0%, for the quarter ended September 30, 2023. The decrease in effective tax rate is primarily due a $243 thousand increase in tax benefit on the vest of restricted stock and exercise of stock options during the quarter ended September 30, 2024 as compared to the quarter ended September 30, 2023.

As of September 30, 2024, nonperforming assets totaled $37.2 million, or 0.94% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024. The increase is primarily related to four National Lending loans placed on non-accrual, which are individually evaluated in the allowance for credit losses and are well-collateralized.

As of September 30, 2024, past due loans totaled $31.3 million, or 0.89% of total loans, compared to past due loans totaling $26.3 million, or 0.95% of total loans, as of June 30, 2024.

As of September 30, 2024, the Bank’s Tier 1 leverage capital ratio was 12.1%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 12.7% at September 30, 2024, compared to 14.8% at June 30, 2024. The Total risk-based capital ratio decreased primarily due to the increase in risk-weighted assets from significant loan growth during the quarter ended September 30, 2024.

Investor Call Information
Rick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer of Northeast Bank, will host a conference call to discuss first quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, October 30^th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us – Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

About Northeast Bank
Northeast Bank (NASDAQ: NBN) is a full-service bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Federal Deposit Insurance Corporation (the “FDIC”), in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; changes in interest rates and real estate values; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changing government regulation; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K and updated by our Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.

NBN-F


NORTHEAST BANK
BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
	September 30, 2024		June 30, 2024

Assets
Cash and due from banks	$	768	$	2,711
Short-term investments		316,519		239,447
Total cash and cash equivalents		317,287		242,158


Available-for-sale debt securities, at fair value		36,836		48,978
Equity securities, at fair value		7,269		7,013
Total investment securities		44,105		55,991

SBA loans held for sale		17,639		14,506

Loans:
Commercial real estate		2,715,536		2,028,280
Commercial and industrial		681,118		618,846
Residential real estate		106,075		99,234
Consumer		234		291
Total loans		3,502,963		2,746,651
Less: Allowance for credit losses		43,640		26,709
Loans, net		3,459,323		2,719,942


Premises and equipment, net		26,452		27,144
Federal Home Loan Bank stock, at cost		15,499		15,751
Loan servicing rights, net		926		984
Bank-owned life insurance		18,954		18,830
Accrued interest receivable		17,294		15,163
Other assets		22,419		21,734
Total assets	$	3,939,898	$	3,132,203

Liabilities and Shareholders’ Equity
Deposits:
Demand	$	149,669	$	146,727
Savings and interest checking		752,806		732,029
Money market		130,878		154,504
Time		2,091,561		1,306,203
Total deposits		3,124,914		2,339,463

Federal Home Loan Bank and other advances		339,073		345,190
Lease liability		19,870		20,252
Other liabilities		63,484		50,664
Total liabilities		3,547,341		2,755,569

Commitments and contingencies		–		–


Shareholders’ equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares
issued and outstanding at September 30 and June 30, 2024		–		–
Voting common stock, $1.00 par value, 25,000,000 shares authorized;
8,212,026 and 8,127,690 shares issued and outstanding at
September 30 and June 30, 2024, respectively		8,212		8,128
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;
No shares issued and outstanding at September 30 and June 30, 2024		–		–
Additional paid-in capital		63,318		64,762
Retained earnings		320,955		303,927
Accumulated other comprehensive income (loss)		72		(183	)
Total shareholders’ equity		392,557		376,634
Total liabilities and shareholders’ equity	$	3,939,898	$	3,132,203


NORTHEAST BANK
STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended September 30,
	2024		2023
Interest and dividend income:
Interest and fees on loans	$	65,338	$	59,114
Interest on available-for-sale securities		595		483
Other interest and dividend income		3,921		3,100
Total interest and dividend income		69,854		62,697

Interest expense:
Deposits		26,590		19,257
Federal Home Loan Bank and other advances		4,030		6,145
Obligation under capital lease agreements		234		171
Total interest expense		30,854		25,573
Net interest and dividend income before provision for credit losses		39,000		37,124
Provision for credit losses		422		190
Net interest and dividend income after provision for credit losses		38,578		36,934

Noninterest income:
Fees for other services to customers		443		407
Gain on sales of SBA loans		3,331		251
Net unrealized gain (loss) on equity securities		189		(157	)
Loss on real estate owned, other repossessed collateral and premises and equipment, net		–		–
Bank-owned life insurance income		124		115
Correspondent fee income		30		92
Other noninterest income		2		71
Total noninterest income		4,119		779

Noninterest expense:
Salaries and employee benefits		11,183		9,721
Occupancy and equipment expense		1,078		1,105
Professional fees		753		781
Data processing fees		1,487		1,100
Marketing expense		136		261
Loan acquisition and collection expense		1,293		650
FDIC insurance expense		331		357
Other noninterest expense		1,424		1,414
Total noninterest expense		17,685		15,389
Income before income tax expense		25,012		22,324
Income tax expense		7,906		7,152
Net income	$	17,106	$	15,172


Weighted-average shares outstanding:
Basic		7,886,148		7,479,837
Diluted		8,108,688		7,554,314

Earnings per common share:
Basic	$	2.17	$	2.03
Diluted		2.11		2.01

Cash dividends declared per common share	$	0.01	$	0.01


NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Three Months Ended September 30,
	2024						2023
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning assets:
Investment securities	$	55,413	$	595	4.26	%	$	60,173	$	483	3.19	%
Loans (1) (2) (3)		2,838,352		65,338	9.13	%		2,503,429		59,114	9.39	%
Federal Home Loan Bank stock		16,465		330	7.95	%		22,357		413	7.35	%
Short-term investments (4)		245,542		3,591	5.80	%		201,803		2,687	5.30	%
Total interest-earning assets		3,155,772		69,854	8.78	%		2,787,762		62,697	8.95	%
Cash and due from banks		2,112						2,492
Other non-interest earning assets		94,071						56,263
Total assets	$	3,251,955					$	2,846,517

Liabilities & Shareholders’ Equity:
Interest-bearing liabilities:
NOW accounts	$	563,730	$	6,380	4.49	%	$	487,445	$	5,145	4.20	%
Money market accounts		148,687		1,267	3.38	%		258,296		2,133	3.29	%
Savings accounts		178,581		1,557	3.46	%		90,997		560	2.45	%
Time deposits		1,389,832		17,386	4.96	%		977,220		11,419	4.65	%
Total interest-bearing deposits		2,280,830		26,590	4.63	%		1,813,958		19,257	4.22	%
Federal Home Loan Bank advances		362,594		4,030	4.41	%		510,514		6,145	4.79	%
Lease liability		20,018		234	4.64	%		21,776		171	3.12	%
Total interest-bearing liabilities		2,663,442		30,854	4.60	%		2,346,248		25,573	4.34	%

Non-interest-bearing liabilities:
Demand deposits and escrow accounts		175,161						169,338
Other liabilities		26,175						25,065
Total liabilities		2,864,778						2,540,651
Shareholders’ equity		387,177						305,866
Total liabilities and shareholders’ equity	$	3,251,955					$	2,846,517

Net interest income			$	39,000					$	37,124

Interest rate spread					4.18	%					4.61	%
Net interest margin (5)					4.90	%					5.30	%

Cost of funds (6)					4.31	%					4.04	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.


NORTHEAST BANK
SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Net interest income	$	39,000		$	37,935		$	36,512		$	37,000		$	37,124
Provision for credit losses		422			547			596			436			190
Noninterest income		4,119			2,092			1,542			1,466			779
Noninterest expense		17,685			17,079			16,429			15,669			15,389
Net income		17,106			15,140			13,865			14,054			15,172

Weighted-average common shares outstanding:
Basic		7,886,148			7,765,868			7,509,320			7,505,109			7,479,837
Diluted		8,108,688			7,910,692			7,595,124			7,590,913			7,554,315
Earnings per common share:
Basic	$	2.17		$	1.95		$	1.85		$	1.87		$	2.03
Diluted		2.11			1.91			1.83			1.85			2.01

Dividends declared per common share	$	0.01		$	0.01		$	0.01		$	0.01		$	0.01

Return on average assets		2.09	%		1.99	%		1.87	%		1.93	%		2.12	%
Return on average equity		17.53	%		16.56	%		16.45	%		17.35	%		19.73	%
Net interest rate spread (1)		4.18	%		4.41	%		4.27	%		4.49	%		4.61	%
Net interest margin (2)		4.90	%		5.13	%		5.01	%		5.20	%		5.30	%
Efficiency ratio (non-GAAP) (3)		41.01	%		42.67	%		43.17	%		40.73	%		40.60	%
Noninterest expense to average total assets		2.16	%		2.24	%		2.21	%		2.15	%		2.15	%
Average interest-earning assets to average interest-bearing liabilities		118.48	%		118.78	%		119.28	%		118.52	%		118.82	%

	As of:
	September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Nonperforming loans:
Originated portfolio:
Residential real estate	$	3,976		$	2,502		$	2,573		$	2,582		$	289
Commercial real estate		4,682			1,407			2,075			2,075			1,973
Commercial and industrial		6,684			6,520			6,928			6,950			584
Consumer		–			–			–			–			–
Total originated portfolio		15,342			10,429			11,576			11,607			2,846
Total purchased portfolio		21,830			17,832			16,370			19,165			14,603
Total nonperforming loans		37,172			28,261			27,946			30,772			17,449
Real estate owned and other repossessed collateral, net		–			–			–			–			–
Total nonperforming assets	$	37,172		$	28,261		$	27,946		$	30,772		$	17,449

Past due loans to total loans		0.89	%		0.95	%		1.13	%		1.22	%		1.01	%
Nonperforming loans to total loans		1.06	%		1.02	%		1.05	%		1.18	%		0.69	%
Nonperforming assets to total assets		0.94	%		0.90	%		0.93	%		1.04	%		0.61	%
Allowance for credit losses to total loans		1.25	%		0.97	%		0.98	%		1.06	%		1.00	%
Allowance for credit losses to nonperforming loans		117.40	%		94.51	%		92.83	%		89.67	%		145.01	%
Net charge-offs (recoveries)	$	1,604		$	1,347		$	2,225		$	995		$	1,536
Commercial real estate loans to total capital (4)		604.38	%		482.13	%		509.08	%		544.34	%		546.91	%
Net loans to deposits		110.70	%		116.88	%		118.15	%		121.31	%		127.24	%
Purchased loans to total loans		69.11	%		61.88	%		60.99	%		63.07	%		59.98	%
Equity to total assets		9.96	%		12.02	%		11.73	%		11.03	%		10.83	%
Common equity tier 1 capital ratio		11.45	%		13.84	%		13.24	%		12.63	%		12.45	%
Total risk-based capital ratio		12.70	%		14.82	%		14.22	%		13.71	%		13.46	%
Tier 1 leverage capital ratio		12.06	%		12.30	%		11.79	%		11.28	%		10.95	%

Total shareholders’ equity	$	392,557		$	376,634		$	351,913		$	327,540		$	311,569
Less: Preferred stock		–			–			–			–			–
Common shareholders’ equity		392,557			376,634			351,913			327,540			311,569
Less: Intangible assets (5)		–			–			–			–			–
Tangible common shareholders’ equity (non-GAAP)	$	392,557		$	376,634		$	351,913		$	327,540		$	311,569

Common shares outstanding		8,212,026			8,127,690			7,977,690			7,804,052			7,796,691
Book value per common share	$	47.80		$	46.34		$	44.11		$	41.97		$	39.96
Tangible book value per share (non-GAAP) (6)		47.80			46.34			44.11			41.97			39.96

(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
(3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.
(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
(5) Includes the loan servicing rights asset.
(6) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding.

For More Information:
Richard Cohen, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, Maine 04101
207.786.3245 ext. 3249
www.northeastbank.com

The MIL Network –

January 25, 2025

MIL-OSI: Provident Financial Services, Inc. Reports Third Quarter Earnings and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

ISELIN, N.J., Oct. 29, 2024 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $46.4 million, or $0.36 per basic and diluted share for the three months ended September 30, 2024, compared to a net loss of $11.5 million, or $0.11 per basic and diluted share, for the three months ended June 30, 2024 and net income of $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net income totaled $67.0 million, or $0.65 per basic and diluted share, compared to $101.1 million, or $1.35 per basic and diluted share, for the nine months ended September 30, 2023.

The Company’s earnings for the three and nine months ended September 30, 2024 reflected the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments. The merger with Lakeland significantly impacted provisions for credit losses in the trailing quarter due to the initial CECL provisions recorded on acquired loans. The results of operations for the three and nine months ended September 30, 2024 also included other transaction costs related to the merger with Lakeland, totaling $15.6 million and $36.7 million, respectively, compared with transaction costs totaling $2.3 million and $5.3 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale of subordinated debt issued by Lakeland from the Provident investment portfolio, during the nine months ended September 30, 2024.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “We achieved solid performance this quarter, and we are optimistic that our results will continue to improve as we further realize the synergies of the merger. Provident generated strong earnings and core metrics, aided by robust performance in our fee-based businesses. We continue to expand our operations prudently and believe we are well-positioned for even greater success as market conditions improve.”

Regarding the Company’s merger with Lakeland, Mr. Labozzetta added, “We are proud to announce that, with the conversion of our core system in early September, our merger is complete and we are a unified organization. Our cultures are combining well and we are already experiencing the benefits of cost savings and enhanced revenue opportunities. We are grateful to the many team members whose hard work allowed for a smooth conversion and the retention of almost all legacy Lakeland customers.”

Performance Highlights for the Third Quarter of 2024

Net interest income increased $42.2 million to $183.7 million for the three months ended September 30, 2024, from $141.5 million for the trailing quarter primarily due to the full quarter impact of net assets acquired from Lakeland, including the accretion of purchase accounting adjustments and four basis points of core margin expansion.
The net interest margin increased ten basis points to 3.31% for the quarter ended September 30, 2024, from 3.21% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to 5.84%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2024 increased ten basis points to 3.19%, compared to the trailing quarter. The increases in the yields and costs on interest-earning assets and interest-bearing liabilities were primarily due to a full quarter of accretion of purchase accounting adjustments related to the Lakeland merger, which contributed approximately 53 basis points to the net interest margin in the current quarter.
Non-interest income increased $4.6 million to $26.9 million for the three months ended September 30, 2024, from $22.3 million for the trailing quarter, while non-interest expense increased $20.6 million to $136.0 million for the three months ended September 30, 2024, compared to $115.4 million for the trailing quarter. The increases in both non-interest income and non-interest expense were reflective of a full quarter of combined operations with Lakeland.
Wealth management and insurance agency income increased 9.0% and 12.6%, respectively, versus the same period in 2023. The increase in wealth management income was primarily due to an increase in the average market value of assets under management during the period, while the increase in insurance agency income was largely due to an increase in business activity.
Adjusting for transaction costs related to the merger with Lakeland, net of tax, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity(1) were 0.95%, 8.62% and 14.53% for the quarter ended September 30, 2024, compared to 0.06%, 0.53% and 2.01% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 13 of the earnings release.
The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity⁽²⁾ were 1.48%, 13.48% and 19.77% for the quarter ended September 30, 2024, compared to 1.47%, 13.26% and 19.21% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 14 of the earnings release.
As of September 30, 2024, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.98 billion, with a weighted average interest rate of 7.18%, compared to $1.67 billion, with a weighted average interest rate of 7.53%, as of June 30, 2024.
The Company recorded a $9.6 million provision for credit losses on loans for the quarter ended September 30, 2024, compared to a $66.1 million provision for the trailing quarter. The provision for credit losses on loans in the quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration. The allowance for credit losses as a percentage of loans increased to 1.02% as of September 30, 2024, from 1.00% as of June 30, 2024.
As of September 30, 2024, CRE loans related to office properties totaled $921.1 million, compared to $953.5 million as of June 30, 2024. CRE loans secured by office properties constitutes only 4.9% of total loans and have an average loan size of $1.9 million, with just seven relationships greater than $10.0 million. There were four loans totaling $9.2 million on non-accrual as of September 30, 2024, however we do not expect to incur losses on any of these loans.
As of September 30, 2024, multi-family CRE loans secured by New York City properties totaled $226.6 million, compared to $227.7 million as of June 30, 2024. This portfolio constitutes only 1.2% of total loans and has an average loan size of $2.6 million. Loans that are collateralized by rent stabilized apartments comprise less than 0.80% of the total loan portfolio and are all performing.
Non-performing loans to total loans as of September 30, 2024 increased to 0.47%, compared to 0.36% as of June 30, 2024, while non-performing assets to total assets as of September 30, 2024 increased to 0.41%, compared to 0.33% as of June 30, 2024. The increase in non-performing loans, compared to the prior quarter was primarily attributable to one commercial real estate credit secured by an industrial property which has a loan-to-value ratio of approximately 39%. We anticipate a near-term resolution of this credit with no expected loss. For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans. Of this total, $6.4 million was attributable to one previously identified commercial relationship that had a $4.4 million specific reserve as of June 30, 2024. This credit is expected to be fully resolved in the fourth quarter of 2024.

Declaration of Quarterly Dividend

The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on November 29, 2024 to stockholders of record as of the close of business on November 15, 2024.

Results of Operations

Three months ended September 30, 2024 compared to the three months ended June 30, 2024

For the three months ended September 30, 2024, the Company reported net income of $46.4 million, or $0.36 per basic and diluted share, compared to a net loss of $11.5 million, or $0.11 per basic and diluted share, for the three months ended June 30, 2024. The Company’s earnings for the prior quarter were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended September 30, 2024 included transaction costs related to the merger with Lakeland totaling $15.6 million, compared with transaction costs totaling $18.9 million in the trailing quarter. Additionally, the Company realized a $2.8 million loss in the trailing quarter related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland.

Net Interest Income and Net Interest Margin

Net interest income increased $42.2 million to $183.7 million for the three months ended September 30, 2024, from $141.5 million for the trailing quarter. Net interest income for the three months ended September 30, 2024 was favorably impacted by a full quarter of combined operations with Lakeland and accretion of purchase accounting adjustments, compared to a 45 days impact in the prior quarter.

The Company’s net interest margin increased ten basis points to 3.31% for the quarter ended September 30, 2024, from 3.21% for the trailing quarter. Accretion of purchase accounting adjustments related to the Lakeland merger contributed 53 basis points to the net interest margin in the current quarter. The current net interest margin reflects a full quarter of the acquisition of Lakeland’s interest-bearing assets and liabilities, the prior quarter sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the prior quarter issuance of subordinated debt.

The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to 5.84%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2024 increased ten basis points from the trailing quarter, to 3.19%. The average cost of interest-bearing deposits for the quarter ended September 30, 2024 increased 12 basis points to 2.96%, compared to 2.84% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.36% for the quarter ended September 30, 2024, compared to 2.27% for the trailing quarter. The average cost of borrowed funds for the quarter ended September 30, 2024 was 3.73%, compared to 3.83% for the quarter ended June 30, 2024. All yields and costs reflect a full quarter of combined operations with Lakeland.

Provision for Credit Losses on Loans

For the quarter ended September 30, 2024, the Company recorded a $9.6 million provision for credit losses on loans, compared with a provision for credit losses on loans of $66.1 million for the quarter ended June 30, 2024. The provision for credit losses on loans in the quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration, while the provision for credit losses on loans in the prior quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans.

Non-Interest Income and Expense

For the three months ended September 30, 2024, non-interest income totaled $26.9 million, an increase of $4.6 million, compared to the trailing quarter. Net gain on securities transactions increased $3.0 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to a $2.8 million loss realized on the sale from the Provident investment portfolio of subordinated debt issued by Lakeland in the prior quarter. Fee income increased $1.1 million to $9.8 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to increases in deposit and debit card related fee income. The increases in fee income are primarily attributable to the addition of the Lakeland customer base. BOLI income increased $1.0 million for the three months ended September 30, 2024, compared to the trailing quarter, primarily due to an increase in benefit claims recognized. Partially offsetting these increases in non-interest income, insurance agency income decreased $857,000 to $3.6 million for the three months ended September 30, 2024, compared to the trailing quarter, due to a seasonal decrease in business activity in the current quarter, while wealth management income decreased $149,000 to $7.6 million for the three months ended September 30, 2024, compared to the trailing quarter, mainly due to a seasonal decrease in tax preparation fees, partially offset by an increase in the average market value of assets under management during the period.

Non-interest expense totaled $136.0 million for the three months ended September 30, 2024, an increase of $20.6 million, compared to $115.4 million for the trailing quarter. Compensation and benefits expense increased $8.6 million to $63.5 million for the three months ended September 30, 2024, compared to $54.9 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to a full quarter of combined operations with Lakeland, compared to 45 days in the prior quarter. Amortization of intangibles increased $5.7 million to $12.2 million for the three months ended September 30, 2024, compared to $6.5 million for the trailing quarter, largely due to a full quarter of core deposit intangible amortization related to Lakeland. Other operating expenses increased $4.5 million to $15.8 million for the three months ended September 30, 2024, compared to $11.3 million for the trailing quarter, primarily due to increases in professional service expenses. Data processing expense increased $2.0 million to $10.5 million for the three months ended September 30, 2024, compared to $8.4 million for the trailing quarter, primarily due a full quarter of combined operations with Lakeland, while net occupancy expense increased $1.6 million to $12.8 million for the three months ended September 30, 2024, compared to $11.1 million for the trailing quarter, primarily due to increases in maintenance and depreciation expenses from the addition of Lakeland. Additionally, FDIC insurance increased $1.1 million to $4.2 million for the three months ended September 30, 2024, primarily resulting from the impact of the Lakeland merger. Partially offsetting these increases, merger-related expenses decreased $3.3 million to $15.6 million for the three months ended September 30, 2024, compared to the trailing quarter.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ declined to 1.98% for the quarter ended September 30, 2024, compared to 2.02% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁶⁾ improved to 57.20% for the three months ended September 30, 2024, compared to 57.86% for the trailing quarter.

Income Tax Expense/Benefit

For the three months ended September 30, 2024, the Company’s income tax expense was $18.9 million, compared to an income tax benefit of $9.8 million for the trailing quarter. The increase in tax expense for the three months ended September 30, 2024 compared with the trailing quarter was largely due to an increase in taxable income in the current quarter as a result of the Lakeland merger and a $5.3 million tax benefit realized in the trailing quarter related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

Three months ended September 30, 2024 compared to the three months ended September 30, 2023

For the three months ended September 30, 2024, the Company reported net income of $46.4 million, or $0.36 per basic and diluted share, compared to net income of $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023. The Company’s earnings for the quarter ended September 30, 2024 reflected the impact of the May 16, 2024 merger with Lakeland. The results of operations included transaction costs related to the merger with Lakeland totaling $15.6 million and $2.3 million for the three months ended September 30, 2024 and 2023, respectively.

Net Interest Income and Net Interest Margin

Net interest income increased $87.5 million to $183.7 million for the three months ended September 30, 2024, from $96.2 million for same period in 2023. Net interest income for the three months ended September 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by unfavorable repricing of both deposits and borrowings.

The Company’s net interest margin increased 35 basis points to 3.31% for the quarter ended September 30, 2024, from 2.96% for the same period last year. Accretion of purchase accounting adjustments related to the Lakeland merger contributed 53 basis points to the net interest margin in the current quarter. The current quarter net interest margin reflects the acquisition of Lakeland’s interest bearing assets and liabilities, the prior quarter sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the prior quarter issuance of subordinated debt.

The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 95 basis points to 5.84%, compared to 4.89% for the quarter ended September 30, 2023. The weighted average cost of interest-bearing liabilities increased 69 basis points for the quarter ended September 30, 2024 to 3.19%, compared to 2.50% for the third quarter of 2023. The average cost of interest-bearing deposits for the quarter ended September 30, 2024 was 2.96%, compared to 2.22% for the same period last year. Average non-interest-bearing demand deposits increased $1.51 billion to $3.74 billion for the quarter ended September 30, 2024, compared to $2.23 billion for the quarter ended September 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.36% for the quarter ended September 30, 2024, compared with 1.74% for the quarter ended September 30, 2023. The average cost of borrowed funds for the quarter ended September 30, 2024 was 3.73%, compared to 3.74% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended September 30, 2024, the Company recorded a $9.6 million provision for credit losses on loans, compared with an $11.0 million provision for credit losses on loans for the quarter ended September 30, 2023. The provision for credit losses on loans in the current quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration. For the three months ended September 30, 2024, net charge-offs totaled $6.8 million, or an annualized 14 basis points of average loans.

Non-Interest Income and Expense

Non-interest income totaled $26.9 million for the quarter ended September 30, 2024, an increase of $7.5 million, compared to the same period in 2023. Fee income increased $3.7 million to $9.8 million for the three months ended September 30, 2024, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger. BOLI income increased $2.5 million to $4.3 million for the three months ended September 30, 2024, compared to the prior year quarter, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland’s BOLI. Wealth management fees increased $628,000 to $7.6 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, mainly due to an increase in the average market value of assets under management during the period, while insurance agency income increased $407,000 to $3.6 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, largely due to an increase in business activity. Additionally, other income increased $339,000 to $1.5 million for the three months ended September 30, 2024, compared to the quarter ended September 30, 2023, primarily due to increases in gains on the sale of SBA and mortgage loans.

For the three months ended September 30, 2024, non-interest expense totaled $136.0 million, an increase of $70.4 million, compared to the three months ended September 30, 2023. Compensation and benefits expense increased $27.8 million to $63.5 million for the three months ended September 30, 2024, compared to $35.7 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expenses increased $13.3 million to $15.6 million for the three months ended September 30, 2024, compared to the same period in 2023. Amortization of intangibles increased $11.5 million to $12.2 million for the three months ended September 30, 2024, compared to $720,000 for the same period in 2023, largely due to core deposit intangible amortization related to Lakeland in the current quarter. Data processing expenses increased $5.2 million to $10.5 million for three months ended September 30, 2024, compared to $5.3 million for the same period in 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Net occupancy expense increased $4.7 million to $12.8 million for three months ended September 30, 2024, compared to $8.1 million for the same period in 2023, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland. Other operating expenses increased $5.0 million to $15.8 million for the three months ended September 30, 2024, compared to $10.7 million for the same period in 2023, primarily due to increases in professional service expenses, while FDIC insurance increased $2.6 million to $4.2 million for the three months ended September 30, 2024, primarily due to the addition of Lakeland.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ was 1.98% for the quarter ended September 30, 2024, compared to 1.80% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁶⁾ was 57.20% for the three months ended September 30, 2024 compared to 54.81% for the same respective period in 2023.

Income Tax Expense

For the three months ended September 30, 2024, the Company’s income tax expense was $18.9 million with an effective tax rate of 28.9%, compared with an income tax expense of $8.8 million with an effective tax rate of 23.7% for the three months ended September 30, 2023. The increase in tax expense for the three months ended September 30, 2024, compared with the same period last year was largely due to an increase in taxable income in the quarter, as a result of the Lakeland merger and the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee in the prior quarter.

Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023

For the nine months ended September 30, 2024, net income totaled $67.0 million, or $0.65 per basic and diluted share, compared to net income of $101.1 million, or $1.35 per basic and diluted share, for the nine months ended September 30, 2023. The Company’s earnings for the nine months ended September 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. Transaction costs related to our merger with Lakeland totaled $36.7 million and $5.3 million for the nine months ended September 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland, during the nine months ended September 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $115.2 million to $418.9 million for the nine months ended September 30, 2024, from $303.7 million for same period in 2023. Net interest income for the nine months ended September 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by the unfavorable repricing of both deposits and borrowings.

For the nine months ended September 30, 2024, our net interest margin decreased one basis point to 3.18%, compared to 3.19% for the nine months ended September 30, 2023. The weighted average yield on interest earning assets increased 85 basis points to 5.61% for the nine months ended September 30, 2024, compared to 4.76% for the nine months ended September 30, 2023, while the weighted average cost of interest-bearing liabilities increased 99 basis points to 3.06% for the nine months ended September 30, 2024, compared to 2.07% for the same period last year. The average cost of interest-bearing deposits increased 102 basis points to 2.84% for the nine months ended September 30, 2024, compared to 1.82% for the same period last year. Average non-interest-bearing demand deposits increased $514.3 million to $2.90 billion for the nine months ended September 30, 2024, compared with $2.38 billion for the nine months ended September 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the nine months ended September 30, 2024, compared with 1.40% for the nine months ended September 30, 2023. The average cost of borrowings for the nine months ended September 30, 2024 was 3.73%, compared to 3.29% for the same period last year.

Provision for Credit Losses on Loans

For the nine months ended September 30, 2024, the Company recorded a $75.9 million provision for credit losses on loans, compared with a provision for credit losses on loans of $27.4 million for the nine months ended September 30, 2023. The increased provision for credit losses on loans for the nine months ended September 30, 2024 was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by an improved economic forecast for the current nine-month period within our CECL model, compared to the same period last year. For the nine months ended September 30, 2024, net charge-offs totaled $9.1 million or an annualized eight basis points of average loans.

Non-Interest Income and Expense

For the nine months ended September 30, 2024, non-interest income totaled $69.9 million, an increase of $9.1 million compared to the same period in 2023. Fee income increased $6.1 million to $24.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger. BOLI income increased $4.6 million to $9.4 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland’s BOLI, while wealth management income increased $2.1 million to $22.9 million for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to an increase in the average market value of assets under management during the period. Additionally, insurance agency income increased $1.7 million to $12.9 million for the nine months ended September 30, 2024, compared to $11.2 million for the same period in 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the nine months ended September 30, 2024, primarily due to a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland. Other income decreased $2.4 million to $3.2 million for the nine months ended September 30, 2024, compared to $5.7 million for the same period in 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans.

Non-interest expense totaled $323.2 million for the nine months ended September 30, 2024, an increase of $123.7 million, compared to $199.5 million for the nine months ended September 30, 2023. Compensation and benefits expense increased $48.7 million to $158.4 million for the nine months ended September 30, 2024, compared to $109.7 million for the nine months ended September 30, 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Merger-related expenses increased $31.3 million to $36.7 million for the nine months ended September 30, 2024, compared to $5.3 million for the nine months ended September 30, 2023. Amortization of intangibles increased $17.2 million to $19.4 million for the nine months ended September 30, 2024, compared to $2.2 million for the nine months ended September 30, 2023, largely due to core deposit intangible amortization related to Lakeland. Data processing expense increased $9.2 million to $25.7 million for the nine months ended September 30, 2024, compared to $16.5 million for the nine months ended September 30, 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland, while net occupancy expense increased $8.0 million to $32.5 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Other operating expenses increased $5.6 million to $37.4 million for the three months ended September 30, 2024, compared to $31.8 million for the same period in 2023, primarily due to increases in professional service expenses, while FDIC insurance increased $3.9 million to $9.6 million for the three months ended September 30, 2024, primarily due to the addition of Lakeland.

Income Tax Expense
For the nine months ended September 30, 2024, the Company’s income tax expense was $19.9 million with an effective tax rate of 22.9%, compared with $34.9 million with an effective tax rate of 25.7% for the nine months ended September 30, 2023. The decrease in tax expense for the nine months ended September 30, 2024 compared with the same period last year was largely due to a $5.8 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger.

Asset Quality

The Company’s total non-performing loans as of September 30, 2024 were $89.9 million, or 0.47% of total loans, compared to $67.9 million, or 0.36% of total loans as of June 30, 2024 and $49.6 million, or 0.46% of total loans as of December 31, 2023. The $22.1 million increase in non-performing loans as of September 30, 2024, compared to the trailing quarter, consisted of a $10.4 million increase in non-performing commercial mortgage loans, an $8.9 million increase in non-performing commercial loans, a $1.5 million increase in non-performing construction loans, a $764,000 increase in non-performing residential mortgage loans, a $302,000 increase in non-performing multi-family loans and a $289,000 increase in non-performing consumer loans. As of September 30, 2024, impaired loans totaled $74.0 million with related specific reserves of $7.2 million, compared with impaired loans totaling $54.6 million with related specific reserves of $7.7 million as of June 30, 2024. As of December 31, 2023, impaired loans totaled $42.8 million with related specific reserves of $2.4 million.

As of September 30, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.02% of total loans, compared to 1.00% and 0.99% as of June 30, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $84.0 million to $191.2 million as of September 30, 2024, from $107.2 million as of December 31, 2023. The increase in the allowance for credit losses on loans as of September 30, 2024 compared to December 31, 2023 was due to a $75.9 million provision for credit losses, which included an initial CECL provision of $60.1 million on loans acquired from Lakeland, and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $9.1 million.

The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as delinquency statistics and certain asset quality ratios.

	September 30, 2024				June 30, 2024				December 31, 2023
	Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans
	(Dollars in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial mortgage loans	2	$	430		3	$	1,707		1	$	825
Multi-family mortgage loans	—		—		—		—		1		3,815
Construction loans	—		—		—		—		—		—
Residential mortgage loans	23		5,020		9		1,714		13		3,429
Total mortgage loans	25		5,450		12		3,421		15		8,069
Commercial loans	14		1,952		20		3,444		6		998
Consumer loans	53		4,073		38		2,891		31		875
Total 30 to 59 days past due	92	$	11,475		70	$	9,756		52	$	9,942

60 to 89 days past due:
Commercial mortgage loans	1	$	641		3	$	1,231		—	$	—
Multi-family mortgage loans	—		—		—		—		1		1,635
Construction loans	—		—		—		—		—		—
Residential mortgage loans	11		1,991		10		2,193		8		1,208
Total mortgage loans	12		2,632		13		3,424		9		2,843
Commercial loans	9		1,240		6		1,146		3		198
Consumer loans	10		606		9		648		5		275
Total 60 to 89 days past due	31		4,478		28		5,218		17		3,316
Total accruing past due loans	123	$	15,953		98	$	14,974		69	$	13,258

Non-accrual:
Commercial mortgage loans	17	$	13,969		10	$	3,588		7	$	5,151
Multi-family mortgage loans	6		7,578		5		7,276		1		744
Construction loans	2		13,151		1		11,698		1		771
Residential mortgage loans	24		5,211		20		4,447		7		853
Total mortgage loans	49		39,909		36		27,009		16		7,519
Commercial loans	69		48,592		58		39,715		26		41,487
Consumer loans	32		1,433		24		1,144		10		633
Total non-accrual loans	150	$	89,934		118	$	67,868		52	$	49,639

Non-performing loans to total loans			0.47	%			0.36	%			0.46	%
Allowance for loan losses to total non-performing loans			217.09	%			277.50	%			215.96	%
Allowance for loan losses to total loans			1.02	%			1.00	%			0.99	%

As of September 30, 2024 and December 31, 2023, the Company held foreclosed assets of $9.8 million and $11.7 million, respectively. During the nine months ended September 30, 2024, there were three properties sold with an aggregate carrying value of $532,000 and one write-down of a foreclosed commercial property of $1.3 million. Foreclosed assets as of September 30, 2024 consisted primarily of commercial real estate. Total non-performing assets as of September 30, 2024 increased $36.6 million to $97.9 million, or 0.41% of total assets, from $61.3 million, or 0.43% of total assets as of December 31, 2023.

Balance Sheet Summary

Total assets as of September 30, 2024 were $24.04 billion, a $9.83 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.

The Company’s loans held for investment portfolio totaled $18.79 billion as of September 30, 2024 and $10.87 billion as of December 31, 2023. The loan portfolio consisted of the following:

	September 30, 2024			June 30, 2024			December 31, 2023
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,342,456		$	7,337,742		$	4,512,411
Multi-family		3,226,918			3,189,808			1,812,500
Construction		873,509			970,244			653,246
Residential		2,032,671			2,024,027			1,164,956
Total mortgage loans		13,475,554			13,521,821			8,143,113
Commercial loans		4,710,601			4,617,232			2,440,621
Consumer loans		623,709			626,016			299,164
Total gross loans		18,809,864			18,765,069			10,882,898
Premiums on purchased loans		1,362			1,410			1,474
Net deferred fees and unearned discounts		(16,617	)		(7,149	)		(12,456	)
Total loans	$	18,794,609		$	18,759,330		$	10,871,916

As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments. Compared to the prior quarter, during the three months ended September 30, 2024, the loan portfolio had net increases of $93.4 million of commercial loans, $37.1 million of multi-family loans, $8.6 million of residential mortgage loans, and $4.7 million of commercial mortgage loans, partially offset by net decreases of $96.7 million of construction loans and $2.3 million of consumer loans. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio as of September 30, 2024, compared to 86.5% as of December 31, 2023.

For the nine months ended September 30, 2024, loan funding, including advances on lines of credit, totaled $2.78 billion, compared with $2.53 billion for the same period in 2023.

As of September 30, 2024, the Company’s unfunded loan commitments totaled $2.97 billion, including commitments of $1.84 billion in commercial loans, $231.0 million in construction loans and $225.7 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2023 and September 30, 2023 were $2.09 billion and $2.18 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.98 billion as of September 30, 2024, compared to $1.09 billion and $1.70 billion as of December 31, 2023 and September 30, 2023, respectively.

Total investment securities were $3.17 billion as of September 30, 2024, a $1.04 billion increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.

Total deposits increased $8.08 billion during the nine months ended September 30, 2024, to $18.38 billion, due primarily to the addition of Lakeland. Total savings and demand deposit accounts increased $6.02 billion to $15.22 billion as of September 30, 2024, while total time deposits increased $2.06 billion to $3.16 billion as of September 30, 2024. The increase in savings and demand deposits was largely attributable to a $2.92 billion increase in interest bearing demand deposits, a $1.58 billion increase in non-interest bearing demand deposits, a $1.03 billion increase in money market deposits and a $495.5 million increase in savings deposits. The increase in time deposits consisted of a $2.01 billion increase in retail time deposits and a $46.5 million increase in brokered time deposits.

Borrowed funds increased $244.5 million during the nine months ended September 30, 2024, to $2.21 billion. The increase in deposits and borrowings was largely due to the addition of Lakeland. Borrowed funds represented 9.2% of total assets as of September 30, 2024, a decrease from 13.9% as of December 31, 2023.

Stockholders’ equity increased $930.5 million during the nine months ended September 30, 2024, to $2.62 billion, primarily due to common stock issued for the purchase of Lakeland, net income earned for the period and an improvement in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and nine months ended September 30, 2024, common stock repurchases totaled 1,969 shares at an average cost of $16.36 per share and 88,821 shares at an average cost of $14.87 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of September 30, 2024, approximately 1.0 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of September 30, 2024 were $20.09 and $13.66, respectively, compared with $22.38 and $16.32, respectively, as of December 31, 2023.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering “commitment you can count on” since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. Provident Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Wednesday, October 30, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “project,” “intend,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of any turmoil or negative news in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, any failure to realize the anticipated benefits of the merger transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events, potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

⁽¹⁾ Annualized adjusted return on average assets, average equity and average tangible equity, annualized adjusted pre-tax pre-provision return on average assets, average equity and average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)

	At or for the Three Months Ended									At or for the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
		2024			2024			2023			2024			2023
Statement of Income
Net interest income	$	183,701		$	141,506		$	96,236		$	418,877		$	303,666
Provision for credit losses		9,299			69,705			12,541			78,684			29,031
Non-interest income		26,855			22,275			19,320			69,937			60,861
Non-interest expense		136,002			115,394			65,625			323,224			199,485
Income (loss) before income tax expense		65,255			(21,318	)		37,390			86,906			136,011
Net income (loss)		46,405			(11,485	)		28,547			67,001			101,086
Diluted earnings per share	$	0.36		$	(0.11	)	$	0.38		$	0.65		$	1.35
Interest rate spread		2.65	%		2.58	%		2.39	%		2.55	%		2.69	%
Net interest margin		3.31	%		3.21	%		2.96	%		3.18	%		3.19	%

Profitability
Annualized return on average assets		0.76	%	(0.24		)%		0.81	%		0.47	%		0.98	%
Annualized adjusted return on average assets ⁽¹⁾		0.95	%	0.06		%		0.86	%		0.66	%		1.02	%
Annualized return on average equity		6.94	%	(2.17		)%		6.84	%		4.14	%		8.22	%
Annualized adjusted return on average equity ⁽¹⁾		8.62	%	0.53		%		7.30	%		5.83	%		8.59	%
Annualized return on average tangible equity ⁽⁴⁾		12.06	%	(3.15		)%		9.47	%		7.13	%		11.40	%
Annualized adjusted return on average tangible equity ⁽¹⁾		14.53	%		2.01	%		10.24	%		9.56	%		12.07	%
Annualized adjusted non-interest expense to average assets ⁽⁴⁾		1.98	%		2.02	%		1.80	%		1.99	%		1.87	%
Efficiency ratio ⁽⁶⁾		57.20	%		57.86	%		54.81	%		58.27	%		53.26	%

Asset Quality
Non-accrual loans				$	67,868					$	89,934		$	39,529
90+ and still accruing					—						—			—
Non-performing loans					67,868						88,061			39,529
Foreclosed assets					11,119						9,801			16,487
Non-performing assets					78,987						97,862			56,016
Non-performing loans to total loans					0.36	%					0.47	%		0.37	%
Non-performing assets to total assets					0.33	%					0.41	%		0.40	%
Allowance for loan losses				$	188,331					$	191,175		$	107,563
Allowance for loan losses to total non-performing loans					277.50	%					217.09	%		272.11	%
Allowance for loan losses to total loans					1.00	%					1.02	%		1.01	%
Net loan charge-offs	$	6,756		$	1,340		$	5,510		$	9,067		$	7,266
Annualized net loan charge-offs to average total loans		0.14	%		0.04	%		0.21	%		0.08	%		0.09	%

Average Balance Sheet Data
Assets	$	24,248,038		$	19,197,041		$	13,976,610		$	19,198,113		$	13,848,351
Loans, net		18,531,939			14,649,413			10,470,843			14,631,071			10,269,022
Earning assets		21,809,226			17,385,819			12,735,938			17,305,446			12,574,437
Core deposits		15,394,715			12,257,244			9,212,202			12,271,839			9,408,156
Borrowings		2,125,149			2,158,193			1,780,655			2,074,958			1,556,619
Interest-bearing liabilities		17,304,569			13,856,039			9,826,064			13,757,895			9,554,204
Stockholders’ equity		2,660,470			2,127,469			1,654,920			2,163,856			1,645,093
Average yield on interest-earning assets		5.84	%		5.67	%		4.89	%		5.61	%		4.76	%
Average cost of interest-bearing liabilities		3.19	%		3.09	%		2.50	%		3.06	%		2.07	%

Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.


(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
		2024			2024			2023			2024			2023
Net Income	$	46,405		$	(11,485	)	$	28,547		$	67,001		$	101,086
Merger-related transaction costs		15,567			18,915			2,289			36,684			5,349
Less: income tax expense		(4,306	)		(4,625	)		(486	)		(9,274	)		(1,015	)
Annualized adjusted net income	$	57,666		$	2,805		$	30,350		$	94,411		$	105,420
Less: Amortization of Intangibles (net of tax)	$	8,551		$	4,532		$	503		$	13,577		$	1,560
Annualized adjusted net income for annualized adjusted return on average tangible equity	$	66,217		$	7,337		$	30,853		$	107,988		$	106,980

Annualized Adjusted Return on Average Assets		0.95	%		0.06	%		0.86	%		0.66	%		1.02	%
Annualized Adjusted Return on Average Equity		8.62	%		0.53	%		7.30	%		5.83	%		8.59	%
Annualized Adjusted Return on Average Tangible Equity		14.53	%		2.01	%		10.24	%		9.56	%		12.07	%

(2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
		2024			2024			2023			2024			2023
Net income (loss)	$	46,405		$	(11,485	)	$	28,547		$	67,001		$	101,086
Adjustments to net income (loss):
Provision for credit losses		9,299			69,705			12,541			78,684			29,031
Net loss on Lakeland bond sale		—			2,839			—			—			—
Merger-related transaction costs		15,567			18,915			2,289			36,684			5,349
Income tax expense (benefit)		18,850			(9,833	)		8,843			19,905			34,925
PTPP income	$	90,121		$	70,141		$	52,220		$	202,274		$	170,391

Annualized PTPP income	$	358,525		$	282,106		$	207,177		$	270,191		$	227,812
Average assets	$	24,248,038		$	19,197,041		$	13,976,610		$	19,198,113		$	13,848,351
Average equity	$	2,660,470		$	2,127,469		$	1,654,920		$	2,163,856		$	1,645,093
Average tangible equity	$	1,813,327		$	1,468,630		$	1,195,787		$	1,508,594		$	1,185,222

Annualized PTPP return on average assets		1.48	%		1.47	%		1.48	%		1.41	%		1.65	%
Annualized PTPP return on average equity		13.48	%		13.26	%		12.52	%		12.49	%		13.85	%
Annualized PTPP return on average tangible equity		19.77	%		19.21	%		17.33	%		17.91	%		19.22	%

(3) Book and Tangible Book Value per Share
							September 30,			June 30,			December 31,
								2024			2024			2023
Total stockholders’ equity							$	2,621,058		$	2,555,646		$	1,690,596
Less: total intangible assets								839,223			851,507			457,942
Total tangible stockholders’ equity							$	1,781,835		$	1,704,139		$	1,232,654

Shares outstanding								130,448,599			130,380,393			75,537,186

Book value per share (total stockholders’ equity/shares outstanding)							$	20.09		$	19.60		$	22.38
Tangible book value per share (total tangible stockholders’ equity/shares outstanding)							$	13.66		$	13.07		$	16.32

(4) Annualized Return on Average Tangible Equity
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
		2024			2024			2023			2024			2023
Total average stockholders’ equity	$	2,660,470		$	2,127,469		$	1,654,920		$	2,163,856		$	1,645,093
Less: total average intangible assets		847,143			658,839			459,133			655,262			459,871
Total average tangible stockholders’ equity	$	1,813,327		$	1,468,630		$	1,195,787		$	1,508,594		$	1,185,222

Net income (loss)	$	46,405		$	(11,485	)	$	28,547		$	67,001		$	101,086
Less: Amortization of Intangibles, net of tax		8,551			4,532			503			13,577			1,560
Total net income (loss)	$	54,956		$	(6,953	)	$	29,050		$	80,578		$	102,646

Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)		12.06	%	(1.90) %				9.64	%		7.13	%		11.58	%

(5) Annualized Adjusted Non-Interest Expense to Average Assets
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
		2024			2024			2023			2024			2023
Reported non-interest expense	$	136,002		$	115,394		$	65,625		$	323,224		$	199,485
Adjustments to non-interest expense:
Merger-related transaction costs		15,567			18,915			2,289			36,684			5,349
Adjusted non-interest expense	$	120,435		$	96,479		$	63,336		$	286,540		$	194,136

Annualized adjusted non-interest expense	$	479,122		$	388,036		$	251,279		$	382,751		$	259,559

Average assets	$	24,248,038		$	19,197,041		$	13,976,610		$	19,198,113		$	13,848,351

Annualized adjusted non-interest expense/average assets		1.98	%		2.02	%		1.80	%		1.99	%		1.87	%

(6) Efficiency Ratio Calculation
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
		2024			2024			2023			2024			2023
Net interest income	$	183,701		$	141,506		$	96,236		$	418,877		$	303,666
Reported non-interest income		26,855			22,275			19,320			69,937			60,861
Adjustments to non-interest income:
Net (gain) loss on securities transactions		(2	)		2,973			13			2,972			(37	)
Adjusted non-interest income		26,853			25,248			19,333			72,909			60,824
Total income	$	210,554		$	166,754		$	115,569		$	491,786		$	364,490

Adjusted non-interest expense	$	120,435		$	96,479		$	63,336		$	286,540		$	194,136

Efficiency ratio (adjusted non-interest expense/income)		57.20	%		57.86	%		54.80	%		58.27	%		53.26	%

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
September 30, 2024 (Unaudited) and December 31, 2023
(Dollars in Thousands)

Assets	September 30, 2024			December 31, 2023
Cash and due from banks	$	244,064		$	180,241
Short-term investments		25			14
Total cash and cash equivalents		244,089			180,255
Available for sale debt securities, at fair value		2,725,110			1,690,112
Held to maturity debt securities, net of allowance (fair value of $322,427 as of September 30, 2024 (unaudited) and $352,601 as of December 31, 2023)		332,021			363,080
Equity securities, at fair value		20,044			1,270
Federal Home Loan Bank stock		96,219			79,217
Loans held for sale		5,757			1,785
Loans held for investment		18,794,609			10,871,916
Less allowance for credit losses		191,175			107,200
Net loans		18,609,191			10,766,501
Foreclosed assets, net		9,801			11,651
Banking premises and equipment, net		124,955			70,998
Accrued interest receivable		89,866			58,966
Intangible assets		839,223			457,942
Bank-owned life insurance		403,648			243,050
Other assets		548,348			287,768
Total assets	$	24,042,515		$	14,210,810

Liabilities and Stockholders’ Equity
Deposits:
Demand deposits	$	13,548,480		$	8,020,889
Savings deposits		1,671,209			1,175,683
Certificates of deposit of $250,000 or more		800,005			218,549
Other time deposits		2,356,491			877,393
Total deposits		18,376,185			10,292,514
Mortgage escrow deposits		48,007			36,838
Borrowed funds		2,214,512			1,970,033
Subordinated debentures		414,184			10,695
Other liabilities		368,569			210,134
Total liabilities		21,421,457			12,520,214

Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued		—			—
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,448,599 shares outstanding as of September 30, 2024 and 75,537,186 outstanding as of December 31, 2023.		1,376			832
Additional paid-in capital		1,871,343			989,058
Retained earnings		972,997			974,542
Accumulated other comprehensive loss		(93,049	)		(141,115	)
Treasury stock		(129,148	)		(127,825	)
Unallocated common stock held by the Employee Stock Ownership Plan		(2,461	)		(4,896	)
Common Stock acquired by the Directors’ Deferred Fee Plan		(2,247	)		(2,694	)
Deferred Compensation – Directors’ Deferred Fee Plan		2,247			2,694
Total stockholders’ equity		2,621,058			1,690,596
Total liabilities and stockholders’ equity	$	24,042,515		$	14,210,810

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended September 30, 2024, June 30, 2024 and September 30, 2023, and nine months ended September 30, 2024 and 2023 (Unaudited)
(Dollars in Thousands, except per share data)

	Three Months Ended							Nine Months Ended
	September 30,		June 30,			September 30,		September 30,			September 30,
		2024		2024			2023		2024			2023
Interest and dividend income:
Real estate secured loans	$	197,857	$	156,318		$	104,540	$	461,632		$	299,830
Commercial loans		81,183		58,532			33,806		175,815			93,915
Consumer loans		12,947		8,351			4,746		25,820			13,419
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		25,974		20,394			11,886		58,698			34,748
Held to maturity debt securities		2,136		2,357			2,334		6,761			7,059
Deposits, federal funds sold and other short-term investments		2,425		1,859			885		5,466			2,678
Total interest income		322,522		247,811			158,197		734,192			451,649

Interest expense:
Deposits		110,009		81,058			44,923		243,602			108,880
Borrowed funds		19,923		20,566			16,765		57,871			38,329
Subordinated debt		8,889		4,681			273		13,842			774
Total interest expense		138,821		106,305			61,961		315,315			147,983
Net interest income		183,701		141,506			96,236		418,877			303,666
Provision charge for credit losses		9,299		69,705			12,541		78,684			29,031
Net interest income after provision for credit losses		174,402		71,801			83,695		340,193			274,635

Non-interest income:
Fees		9,816		8,699			6,132		24,426			18,294
Wealth management income		7,620		7,769			6,992		22,878			20,826
Insurance agency income		3,631		4,488			3,224		12,912			11,175
Bank-owned life insurance		4,308		3,323			1,820		9,448			4,838
Net gain (loss) on securities transactions		2		(2,973	)		13		(2,972	)		37
Other income		1,478		969			1,139		3,245			5,691
Total non-interest income		26,855		22,275			19,320		69,937			60,861

Non-interest expense:
Compensation and employee benefits		63,468		54,888			35,702		158,404			109,724
Net occupancy expense		12,790		11,142			8,113		32,452			24,474
Data processing expense		10,481		8,433			5,312		25,698			16,536
FDIC Insurance		4,180		3,100			1,628		9,553			5,688
Amortization of intangibles		12,231		6,483			720		19,420			2,231
Advertising and promotion expense		1,524		1,171			1,133		3,661			3,722
Merger-related expenses		15,567		18,915			2,289		36,684			5,349
Other operating expenses		15,761		11,262			10,728		37,352			31,761
Total non-interest expense		136,002		115,394			65,625		323,224			199,485
Income (loss) before income tax expense		65,255		(21,318	)		37,390		86,906			136,011
Income tax expense (benefit)		18,850		(9,833	)		8,843		19,905			34,925
Net income (loss)	$	46,405	$	(11,485	)	$	28,547	$	67,001		$	101,086

Basic earnings per share	$	0.36	$	(0.11	)	$	0.38	$	0.65		$	1.35
Average basic shares outstanding		129,941,845		102,957,521			74,909,083		102,819,042			74,793,530

Diluted earnings per share	$	0.36	$	(0.11	)	$	0.38	$	0.65		$	1.35
Average diluted shares outstanding		130,004,870		102,957,521			74,914,205		102,845,261			74,816,606

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
	September 30, 2024						June 30, 2024						September 30, 2023
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Deposits	$	179,313	$	2,425	5.38	%	$	40,228	$	1,859	5.38	%	$	74,183	$	884	4.73	%
Federal funds sold and other short-term investments		—		—	—	%		0		—	—	%		57		1	4.00	%
Available for sale debt securities		2,644,262		24,884	3.72	%		2,244,725		17,647	3.14	%		1,724,833		10,127	2.35	%
Held to maturity debt securities, net ⁽¹⁾		342,217		2,136	2.50	%		352,216		2,357	2.68	%		373,681		2,334	2.50	%
Equity securities, at fair value		19,654		—	—	%		10,373		—	—	%		1,068		—	—	%
Federal Home Loan Bank stock		91,841		1,090	4.75	%		88,864		2,747	12.36	%		91,273		1,759	7.71	%
Net loans: ⁽²⁾
Total mortgage loans		13,363,265		197,857	5.83	%		10,674,109		156,318	5.81	%		7,881,193		104,540	5.21	%
Total commercial loans		4,546,088		81,183	7.05	%		3,514,602		58,532	6.62	%		2,289,267		33,806	5.81	%
Total consumer loans		622,586		12,947	8.27	%		460,702		8,351	7.29	%		300,383		4,746	6.27	%
Total net loans		18,531,939		291,987	6.21	%		14,649,413		223,201	6.05	%		10,470,843		143,092	5.37	%
Total interest-earning assets	$	21,809,226	$	322,522	5.84	%	$	17,385,819	$	247,811	5.67	%	$	12,735,938	$	158,197	4.89	%

Non-Interest Earning Assets:
Cash and due from banks		341,505						37,621						82,522
Other assets		2,097,307						1,773,601						1,158,150
Total assets	$	24,248,038					$	19,197,041					$	13,976,610

Interest-Bearing Liabilities:
Demand deposits	$	9,942,053	$	74,864	3.00	%	$	7,935,543	$	58,179	2.95	%	$	5,741,052	$	35,290	2.44	%
Savings deposits		1,711,502		1,006	0.23	%		1,454,784		832	0.23	%		1,240,951		592	0.19	%
Time deposits		3,112,598		34,139	4.36	%		2,086,433		22,047	4.25	%		1,052,793		9,041	3.41	%
Total deposits		14,766,153		110,009	2.96	%		11,476,760		81,058	2.84	%		8,034,796		44,923	2.22	%

Borrowed funds		2,125,149		19,923	3.73	%		2,158,193		20,566	3.83	%		1,780,655		16,765	3.74	%
Subordinated debentures		413,267		8,889	8.56	%		221,086		4,681	8.52	%		10,613		273	10.24	%
Total interest-bearing liabilities		17,304,569		138,821	3.19	%		13,856,039		106,305	3.09	%		9,826,064		61,961	2.50	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,741,160						2,866,917						2,230,199
Other non-interest bearing liabilities		541,839						346,616						265,427
Total non-interest bearing liabilities		4,282,999						3,213,533						2,495,626
Total liabilities		21,587,568						17,069,572						12,321,690
Stockholders’ equity		2,660,470						2,127,469						1,654,920
Total liabilities and stockholders’ equity	$	24,248,038					$	19,197,041					$	13,976,610

Net interest income			$	183,701					$	141,506					$	96,236

Net interest rate spread					2.65	%					2.58	%					2.39	%
Net interest-earning assets	$	4,504,657					$	3,529,780					$	2,909,874

Net interest margin ⁽³⁾					3.31	%					3.21	%					2.96	%

Ratio of interest-earning assets to total interest-bearing liabilities	1.26x						1.25x						1.30x


(1	)	Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2	)	Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
(3	)	Annualized net interest income divided by average interest-earning assets.

The following table summarizes the quarterly net interest margin for the previous five quarters.
	9/30/24		6/30/24		3/31/24		12/31/23		9/30/23
	3rd Qtr.		2nd Qtr.		1st Qtr.		4th Qtr.		3rd Qtr.
Interest-Earning Assets:
Securities	3.69	%	3.40	%	2.87	%	2.79	%	2.67	%
Net loans	6.21	%	6.05	%	5.51	%	5.50	%	5.37	%
Total interest-earning assets	5.84	%	5.67	%	5.06	%	5.04	%	4.89	%

Interest-Bearing Liabilities:
Total deposits	2.96	%	2.84	%	2.60	%	2.47	%	2.22	%
Total borrowings	3.73	%	3.83	%	3.60	%	3.71	%	3.74	%
Total interest-bearing liabilities	3.19	%	3.09	%	2.80	%	2.71	%	2.50	%

Interest rate spread	2.65	%	2.58	%	2.26	%	2.33	%	2.39	%
Net interest margin	3.31	%	3.21	%	2.87	%	2.92	%	2.96	%

Ratio of interest-earning assets to interest-bearing liabilities	1.26x		1.25x		1.28x		1.28x		1.30x

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)

	September 30, 2024						September 30, 2023
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	39,280	$	5,466	5.38	%	$	69,696	$	2,676	5.13	%
Federal funds sold and other short term investments		—		—	—	%		58		2	5.34	%
Available for sale debt securities		2,189,671		52,553	3.19	%		1,777,861		30,819	2.31	%
Held to maturity debt securities, net ⁽¹⁾		350,529		6,761	2.57	%		379,144		7,059	2.48	%
Equity securities, at fair value		10,050		—	—	%		1,022		—	—	%
Federal Home Loan Bank stock		84,845		6,145	9.66	%		77,634		3,929	6.75	%
Net loans: ⁽²⁾
Total mortgage loans		10,682,974		461,632	5.70	%		7,740,591		299,830	5.12	%
Total commercial loans		3,487,600		175,815	6.69	%		2,225,725		93,915	5.60	%
Total consumer loans		460,497		25,820	7.49	%		302,706		13,419	5.93	%
Total net loans		14,631,071		663,267	5.99	%		10,269,022		407,164	5.25	%
Total interest-earning assets	$	17,305,446	$	734,192	5.61	%	$	12,574,437	$	451,649	4.76	%

Non-Interest Earning Assets:
Cash and due from banks		229,336						121,801
Other assets		1,663,331						1,152,113
Total assets	$	19,198,113					$	13,848,351

Interest-Bearing Liabilities:
Demand deposits	$	7,931,251	$	174,609	2.94	%	$	5,710,855	$	85,822	2.01	%
Savings deposits		1,444,135		2,476	0.23	%		1,315,157		1,582	0.16	%
Time deposits		2,091,806		66,517	4.25	%		961,010		21,476	2.99	%
Total deposits		11,467,192		243,602	2.84	%		7,987,022		108,880	1.82	%
Borrowed funds		2,074,958		57,871	3.73	%		1,556,619		38,329	3.29	%
Subordinated debentures		215,745		13,842	8.57	%		10,563		774	9.80	%
Total interest-bearing liabilities	$	13,757,895	$	315,315	3.06	%	$	9,554,204	$	147,983	2.07	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		2,896,453						2,382,144
Other non-interest bearing liabilities		379,909						266,910
Total non-interest bearing liabilities		3,276,362						2,649,054
Total liabilities		17,034,257						12,203,258
Stockholders’ equity		2,163,856						1,645,093
Total liabilities and stockholders’ equity	$	19,198,113					$	13,848,351

Net interest income			$	418,877					$	303,666

Net interest rate spread					2.55	%					2.69	%
Net interest-earning assets	$	3,547,551					$	3,020,233

Net interest margin ⁽³⁾					3.18	%					3.19	%

Ratio of interest-earning assets to total interest-bearing liabilities	1.26x						1.32x


(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
(3) Annualized net interest income divided by average interest-earning assets.

The following table summarizes the year-to-date net interest margin for the previous three years.

	Nine Months Ended
	September 30, 2024		September 30, 2023		September 23, 2022
Interest-Earning Assets:
Securities	3.33	%	2.57	%	1.72	%
Net loans	5.99	%	5.25	%	4.01	%
Total interest-earning assets	5.61	%	4.76	%	3.51	%

Interest-Bearing Liabilities:
Total deposits	2.84	%	1.82	%	0.33	%
Total borrowings	3.73	%	3.29	%	0.97	%
Total interest-bearing liabilities	3.06	%	2.07	%	0.38	%

Interest rate spread	2.55	%	2.69	%	3.13	%
Net interest margin	3.18	%	3.19	%	3.24	%

Ratio of interest-earning assets to interest-bearing liabilities	1.26x		1.32x		1.38x

SOURCE: Provident Financial Services, Inc.

CONTACT: Investor Relations, 1-732-590-9300 Web Site: http://www.Provident.Bank

The MIL Network –

January 25, 2025

MIL-OSI: TMT Acquisition Corp Shareholders Approve Business Combination with eLong Power Holding Limited

Source: GlobeNewswire (MIL-OSI)

New York, NY, Oct. 29, 2024 (GLOBE NEWSWIRE) — TMT Acquisition Corp (Nasdaq: TMTCU, TMTC, and TMTCR) (“TMTC”), a publicly traded special purpose acquisition company, announced at its extraordinary general meeting earlier today, October 29, 2024, that its shareholders voted to approve the previously announced business combination with eLong Power Holding Limited (“eLong Power”), a provider of high power battery technologies for commercial and specialty vehicles and energy storage systems.

The transaction has been unanimously approved by the Board of Directors of TMT and eLong Power. Subject to certain contractual as well as customary closing conditions, the business combination is expected to close in the coming weeks. As part of the consummation of the business combination, the newly combined public company is expected to trade on the Nasdaq Stock Market under the symbol “ELPW”.

The business combination is expected to provide eLong Power with access to the U.S. public equity markets, thereby accelerating its business expansion and bolstering eLong Power’s position to explore additional growth and value- creating opportunities.

Advisors

The Crone Law Group P.C. is acting as U.S. legal advisor to TMTC. Ogier Global is acting as the Cayman Islands legal advisor to TMTC. Graubard Miller is acting as U.S. legal advisor to eLong Power, Harneys is acting as Cayman Islands legal advisor to eLong Power and Han Kun Law Offices is acting as China legal advisor to eLong Power.

About eLong Power

eLong Power Holding Limited, a Cayman Islands exempted company, is committed to the research and development, manufacturing, sales and service of high-power lithium-ion batteries for electric vehicles and construction machinery, as well as large-capacity, long-cycle lithium-ion batteries for energy storage systems. eLong Power is led by Ms. Xiaodan Liu, eLong Power’s Chairwoman and CEO.

eLong Power has a comprehensive product and technology system that includes battery cells, modules, system integration, and battery management system development, based on high-power lithium-ion batteries and battery system products for long-cycle energy storage devices. eLong Power offers advanced energy applications and full life cycle services. Its product portfolio includes products utilizing lithium manganese oxide and lithium iron phosphate, among others, to meet the needs of high-power applications and energy storage applications in various scenarios.

About TMT Acquisition Corp

TMT Acquisition Corp is a blank check company, also commonly referred to as a special purpose acquisition company (SPAC), formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. TMTC is led by Dajiang (“DJ”) Guo, Chairman and Chief Executive Officer, and Jichuan Yang, Chief Financial Officer, who are growth-oriented executives with a long track record of value creation across industries.

Forward-looking Statements

This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the benefits of the transaction, the anticipated timing of the transaction, the products offered by eLong Power and the markets in which it operates, and eLong Power’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including, but not limited to: the risk that the transaction may not be completed by TMTC’s business combination deadline; the failure to satisfy one or more of the conditions to the consummation of the transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; the effect of the announcement or pendency of the transaction on eLong Power’s business relationships, performance, and business generally; risks that the proposed business combination disrupts current plans or operations of eLong Power; the outcome of any legal proceedings that may be instituted against eLong Power or TMTC related to the business combination agreement or the proposed business combination; the ability of eLong Power to have its securities listed on Nasdaq commencing on the closing of the transaction and maintain such listing thereafter; after the closing of the transaction, the price of eLong Power Inc.’s securities may be volatile due to a variety of factors, including changes in the competitive and highly regulated industries in which eLong Power Inc. will operate, variations in performance across competitors, changes in laws and regulations affecting eLong Power Inc.’s business and changes in its capital structure; the ability to implement business plans, forecasts, and other expectations after the completion of the proposed business combination, and identify and realize additional opportunities provided by the business combination; its need for substantial additional funds; the parties’ dependence on third-party suppliers; risks relating to the results of research and development activities, market and other conditions; its ability to attract, integrate, and retain key personnel; risks related to its growth strategy; patent and intellectual property matters; and the parties’ ability to obtain, perform under and maintain financing and strategic agreements and relationships. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements. Risks regarding TMTC’s and eLong Power’s business are described in detail in TMTC’s and eLong Power’s SEC filings which are available on the SEC’s website at www.sec.gov, including in eLong Power’s registration statement on Form F-4 (File No. 333-280512) and TMTC’s registration statement on Form S-1 (File No. 333-259879), filed with the SEC and updated by TMTC’s and eLong Power’s subsequent filings with the SEC. These forward-looking statements speak only as of the date hereof, and TMTC expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.

eLong Power Investor Contact:
Shilin Xun
Email: xunshilin@elongpower.com

TMTC Contact:
Dajiang Guo
Email: dguo@tmtacquisitioncorp.com
347-627-0058

The MIL Network –

January 25, 2025

MIL-OSI: Stifel Declares Quarterly Common Stock Cash Dividend and Declares Preferred Stock Cash Dividend

Source: GlobeNewswire (MIL-OSI)

ST. LOUIS, Oct. 29, 2024 (GLOBE NEWSWIRE) — Stifel Financial Corp. (NYSE: SF) today announced that its Board of Directors has declared a cash dividend on shares of its common stock of $0.42 per share, payable December 16, 2024, to shareholders of record at the close of business on December 2, 2024.

The Board of Directors also declared a quarterly cash dividend on the outstanding shares of its 6.25% Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), 6.125% Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”), and 4.50% Non-Cumulative Perpetual Preferred Stock, Series D (the “Series D Preferred Stock”). The declared cash dividend on the Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock is for the period from September 17, 2024, up to, but excluding, December 16, 2024. The declared cash dividend equated to approximately $0.390625 per depositary share, or $390.625 per share of the Series B Preferred Stock outstanding. The declared cash dividend equated to approximately $0.3828125 per depositary share, or $382.8125 per share of the Series C Preferred Stock outstanding. The declared cash dividend equated to approximately $0.281250 per depositary share, or $281.250 per share of the Series D Preferred Stock outstanding. The cash dividends are payable on December 16, 2024 to shareholders of record on December 2, 2024.

The Company’s Series B Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrB”, the Company’s Series C Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrC”, and the Company’s Series D Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrD.”

Stifel Company Information
Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.

Stifel Investor Relations Contact
Joel Jeffrey, Senior Vice President
(212) 271-3610 direct
investorrelations@stifel.com

The MIL Network –

January 25, 2025

MIL-OSI: RWA Inc. Unveils The RWA Hub: A Social Mining Platform Dedicated to Growth and Community Building

Source: GlobeNewswire (MIL-OSI)

ROAD TOWN, British Virgin Islands, Oct. 29, 2024 (GLOBE NEWSWIRE) — RWA Inc., a leader in the tokenization of real-world assets (RWAs), is excited to announce the launch of its latest product, The RWA Hub. This platform serves as a center for fostering knowledge, sharing, collaboration, and engagement for investors, entrepreneurs, and enthusiasts interested in real-world asset tokenization.

The RWA Hub provides a centralized space for users to stay informed about the latest developments, events, and opportunities within the RWA ecosystem. With a focus on building an active and engaged community, the hub encourages conversations, insights, and updates on the RWA Inc. ecosystem through incentive campaigns and Initial Labour Offerings.

What the RWA Hub Offers:

Community Engagement and Discussions: The RWA Hub features interactive forums where users can exchange ideas, ask questions, and share experiences. This space encourages dialogue between all users in the RWA Inc. Ecosystem, fostering a collaborative environment where participants can learn from one another and explore new opportunities in the tokenization space.
Exclusive Campaigns and Opportunities: The Hub hosts exclusive campaigns that are not available on other RWA Inc. platforms. These unique opportunities, tailored to active community members, include special token offerings, promotions, and engagement rewards that enrich the overall experience for users who actively participate in the RWA Hub.
Active Membership and Engagement: The RWA Hub already boasts an active membership, with participants regularly engaging in discussions, contributing to forums, and taking part in events. These continued contributions create long-term value for the RWA Inc. ecosystem, and members are rewarded for their dedication and active participation in our community.

Building a Community

The RWA Hub plays an important role in supporting the company’s mission to democratize access to real-world asset investment opportunities by providing a space where community members can connect and share knowledge. It serves as a platform for users to engage with each other and stay updated on trends in the tokenization space.

“The RWA Hub is a center for discussion, collaboration and engagement within our community – it’s a cornerstone for building lasting relationships with our users. We have designed it to reward those who engage and contribute towards the long-term growth of the RWA Inc. ecosystem. Their insights, participation, and dedication help drive us forward, and strengthen our community.” – Kevin Yunai, CEO & founder at RWA Inc.

Tokenization: A Growing Market Opportunity

The global tokenization market is experiencing rapid growth, with the potential to unlock trillions of dollars in traditionally illiquid assets. By fractionalizing high-value assets, RWA Inc. expands market reach and unlocks liquidity, making this market accessible to a broader group of investors. RWA Inc. is set to lead this space through innovative technology, strong leadership, and a dedicated community. The RWA Hub plays an important role in creating a long-standing, engaged community to ensure the longevity of our platform. We believe our success is directly tied to the growth and active involvement of our community. Through their support, we aim to solidify our position as a flagship brand for RWA tokenization.

About RWA Inc.

RWA Inc. delivers end-to-end real-world asset (RWA) tokenization via an advanced multi-asset platform, including tokenization as a service, a launchpad, and a marketplace. With a short-term focus on startup utility tokens for our go-to-market strategy, our primary emphasis is on strategically expanding into startup equity tokens, real estate, collectibles, and other asset classes. Our comprehensive services enhance liquidity, broaden market reach, support business development, and create new avenues for value creation, aligning with market demands.

Join our community today! – community.rwa.inc.

Contact Details:
Kevin Yunai
Founder and CEO
kevin@rwa.inc

Disclaimer: This content is provided by “RWA”. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/85a2b193-aeb6-4b1a-8add-8412116d2c46

https://www.globenewswire.com/NewsRoom/AttachmentNg/cb0194a8-ecb8-463e-a4d4-8c335a88fed6

The MIL Network –

January 25, 2025

MIL-OSI: Enstar Announces Changes to Executive Leadership Team

Source: GlobeNewswire (MIL-OSI)

• Appoints Paul Brockman as Chief Commercial Officer

• Names Adrian Thornycroft as Chief Administrative Officer from May 2025

HAMILTON, Bermuda, Oct. 29, 2024 (GLOBE NEWSWIRE) — Enstar Group Limited (“Enstar”) (Nasdaq: ESGR), today announces changes to its executive leadership team in connection with the upcoming retirement of Orla Gregory, President, at the end the year, and the expanding role of Enstar in the insurance industry.

Paul Brockman has been appointed as Chief Commercial Officer with immediate effect. Paul has been with Enstar since 2012, most recently in the role of Group Chief Operating Officer. This newly created role reflects the continued expansion of the scope of solutions Enstar can bring to the global insurance industry. Paul has over three decades of experience across the legacy and (re)insurance sectors. His new responsibilities will include corporate development, serving as one of the primary liaisons to the insurance market, engaging with industry leaders, and optimising market opportunities.

Adrian Thornycroft will join as Chief Administrative Officer in May 2025. Adrian will be based in Bermuda and will assume a number of responsibilities from Orla as well as take a leading role with respect to change strategy. Adrian has extensive operational and leadership experience, having successfully delivered significant business and change programmes at companies such as Brit, Lloyd’s, and MS Amlin.

The remaining responsibilities under the role of the outgoing President will be assumed by the wider leadership team.

Dominic Silvester, Enstar CEO, said:

“With Paul’s depth of legacy expertise and his versatile, wide-ranging experience, we are confident Paul will continue to make a significant impact as we continue to maintain and expand our industry relationships and drive forward our reputation as the leading provider of legacy solutions.

Adrian’s skillset and expertise aligns perfectly with Enstar’s strategic direction with regard to our operating platform at an important juncture and will further strengthen Enstar’s leadership team.”

About Enstar
Enstar is a NASDAQ-listed leading global insurance group that offers capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Continental Europe, Australia and other international locations. A market leader in completing legacy acquisitions, Enstar has acquired over 117 companies and portfolios since its formation. For further information about Enstar, see www.enstargroup.com.

Cautionary Statement
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that include words such as “estimate,” “project,” “plan,” “intend,” “expect,” “anticipate,” “believe,” “would,” “should,” “could,” “seek,” “may,” “will” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. These statements include statements regarding the intent, belief or current expectations of the Company and its management team. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, including those related to the satisfaction of any post-closing regulatory requirements.

Risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, in addition to those identified above, include: (i) the completion of the proposed transaction on the anticipated terms and timing, (ii) the satisfaction of other conditions to the completion of the proposed transaction, including obtaining required shareholder and regulatory approvals; (iii) the risk that the Company’s stock price may fluctuate during the pendency of the proposed transaction and may decline if the proposed transaction is not completed; (iv) potential litigation relating to the proposed transaction that could be instituted against the Company or its directors, managers or officers, including the effects of any outcomes related thereto; (v) the risk that disruptions from the proposed transaction (including the ability of certain customers to terminate or amend contracts upon a change of control) will harm the Company’s business, including current plans and operations, including during the pendency of the proposed transaction; (vi) the ability of the Company to retain and hire key personnel; (vii) the diversion of management’s time and attention from ordinary course business operations to completion of the proposed transaction and integration matters; (viii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; (ix) legislative, regulatory and economic developments; (x) potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction that could affect the Company’s financial performance; (xi) certain restrictions during the pendency of the proposed transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; (xii) unpredictability and severity of catastrophic events, including but not limited to acts of terrorism, outbreaks of war or hostilities or global pandemics, as well as management’s response to any of the aforementioned factors; (xiii) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (xiv) unexpected costs, liabilities or delays associated with the transaction; (xv) the response of competitors to the transaction; (xvi) the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction, including in circumstances requiring the Company to pay a termination fee; (xvii) those risks and uncertainties set forth under the headings “Forward Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K, as such risk factors may be amended, supplemented or superseded from time to time by other reports filed by the Company with the SEC from time to time, which are available via the SEC’s website at www.sec.gov; and (xviii) those risks described in the Proxy Statement filed with the SEC on October 11, 2024 and available from the sources indicated below.

These risks, as well as other risks associated with the proposed transaction, are more fully discussed in the Proxy Statement filed with the SEC on October 11, 2024 in connection with the proposed transaction. There can be no assurance that the proposed transaction will be completed, or if it is completed, that it will close within the anticipated time period. These factors should not be construed as exhaustive and should be read in conjunction with the other forward-looking statements. The forward-looking statements relate only to events as of the date on which the statements are made. The Company undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, or to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. You should specifically consider the factors identified in this communication that could cause actual results to differ. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect the Company.

Contact:

For Enstar:
For Investors: Matthew Kirk (investor.relations@enstargroup.com)
For Media: Jenna Kerr (communications@enstargroup.com)

The MIL Network –

January 25, 2025

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

Source: African Development Bank Group

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

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

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

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

ABOUT SEFA

SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. The Fund’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and Sustainable Development Goal 7.

MIL OSI Economics –

January 25, 2025

MIL-OSI Global: New insights from Shakespeare’s England reveal striking parallels to contemporary climate change

Source: The Conversation – Canada – By Madeline Bassnett, Professor of Early Modern English Literature, Western University

Unprecedented storms and devastating drought. Flash floods and wildfires ignited by the air’s dry heat. This is the experience for many in our modern world. But it was also the experience for those living amid England’s Little Ice Age.

The Little Ice Age is a period from around 1300 to 1850, when global temperatures dropped significantly. While the exact cause of this phenonemon is unknown, theories range from volcanic eruptions to European colonization of the Americas.

Our research into England’s Little Ice Age during the 16th and 17th centuries has unearthed more than 1,800 unique pieces of weather observations, hidden in documents like diaries and letters. Local and national chronicles embedded reports of extreme weather among accounts of war and monarchs. Extreme weather pamphlets publicized tragic effects of earthquakes, floods and storms, much like our media today.

Our team has created an open access database called the Weather Extremes in England’s Little Ice Age 1500-1700. This database visually maps both extreme and temperate weather in the age of Shakespeare and can help to advance modern climate science.

More fundamentally, these experiential accounts provide a fascinating window into a world not too different from our own. While the causes of the climate change of today are well known, and likely different from that of the Little Ice Age, the experiences of living through both events are at times eerily similar. Understanding these past experiences can help us to better understand our present day and to develop more robust policies in the here and now.

Frosts and freezes

Frost fairs on the River Thames have become a familiar cultural reference point for England’s Little Ice Age. Our data shows that the river froze over a mere four times in the 16th century — in 1516, 1537, 1564 and 1590 — and there were only intermittent observations of unusual cold or snow.

The 17th century was markedly different. Reports of cold came thick and fast, with the exception of a few years between 1620 and 1643.

Title page from The Great Frost: ‘Cold doings in London, except it be at the lotterie. With newes out of the country. A familiar talk betwene a country-man and a citizen touching this terrible frost and the great lotterie, and the effects of them.’ Printed at London: For Henry Gosson, 1608. Attributed to Thomas Dekker.
(Houghton Library, Harvard University)

This was the century of frost fairs on the Thames. With the first 17th century fair in 1608, these events were celebrated by English playwright Thomas Dekker in his pamphlet The Great Frost.

Drinking, barbering and games were on display as London’s citizens marvelled at the novelty of entertainment on the ice. The freezes were frequent enough to become an institution.

By the winter of 1683-1684, the frost fair had become a city within a city, expanding across the ice with avenues of booths, bear and bull-baiting rings and boats-turned-chariots pulled by enterprising watermen across the now solid river.

But these iconic events were just one aspect of Little Ice Age weather in England.

Storms and floods

In the 16th century, severe rain storms were far more common than cold snaps.

On Oct. 5, 1570, “a terrible tempest of wind and raine” caused flooding from Lincolnshire to London as rivers overflowed their banks, drowning towns, fields, crops and cattle. Storm surges inundated the coastline.

Four years later, towns from Newport to St. Ives suffered “raging floods,” and a “giant sea fish” (whale) washed up in the Thames from a massive surge up river. In May 1594, “soddane showres of haile [and] raine” destroyed houses, iron mills, crops and cattle in Sussex and Surrey. September of that year saw another deluge, with bridges taken down in Cambridge and Ware.

This all changed in the 17th century, following the Great Flood that struck Bristol and surrounding areas in 1607. Extreme cold spells then became more frequent, and major storm events were less common. The winter of 1612-1613 saw a number of violent storms recorded in the pamphlet Wonders of this Windie Winter, with livestock lost from Newcastle to Dover and bodies from shipwrecks washing aground in the Thames.

In the next 40 years, though, only the years of 1626 and 1637 contain reports of significant storm events causing loss of life or livestock. Instead of extreme storms, this century was marked more by regular but moderate rainfall, consistent with colder, wetter conditions normally associated with the Little Ice Age.

Fire and heat

If colder, wetter weather was a new normal for 17th century Britons, the hot, dry spring of 1666 caught Londoners unprepared. The Great Fire of London was one of the worst disasters of the age, and diarist John Evelyn recounts that “the heate … had even ignited the aire,” a comment reminiscent of descriptions of wildfire spread today.

Yet periods of extreme heat were surprisingly frequent during the previous century, especially in the England that Shakespeare knew. More than a dozen droughts were recorded across England in the 16th century, usually broken by extreme storms or floods. It never rained, it seems, but it poured. The Thames dried up completely in 1592.

As Thomas Short wrote in his Chronological History of English Weather, “an excessive drought, great death of cattle from want of water; springs and brooks were dried up; horsemen could ride the Thames.” Locals went into the mud to retrieve items long lost to the river.

Shakespeare’s hometown of Stratford-upon-Avon was nearly destroyed by fire twice, in 1594 and 1595, due to severe drought and heat. The warning signs were there for Londoners to beware of hot spells in the next century, but frost fairs and wet weather may have bred complacency.

Lessons for today

The Weather Extremes in England’s Little Ice Age 1500-1700 database is revealing a picture of the world of Shakespeare and early modern England that upends a simplified picture of the Little Ice Age. More than just a world of frosts and freezes, the English Little Ice Age could be known as well as an age of fire and rain.

The documents in our database are the reports of people who lived in a climatically changing world and saw its shifts firsthand. It shows how important weather crowd-sourcing can be, even centuries later. Contemporary projects like the Community Collaborative Rain, Hail and Snow Network, or the Northern Tornadoes Project, continue in the spirit of this work.

But our data could also provide insight into today’s extreme weather. Historical flooding patterns might provide reference points to better manage and understand the unstable weather experienced in the British Isles today.

Madeline Bassnett has received funding from SSHRC for the Weather Extremes in England’s Little Ice Age 1500-1700 project.

Laurie Johnson 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. New insights from Shakespeare’s England reveal striking parallels to contemporary climate change – https://theconversation.com/new-insights-from-shakespeares-england-reveal-striking-parallels-to-contemporary-climate-change-240755

MIL OSI – Global Reports –

January 25, 2025

MIL-OSI USA: $82M Goes to WA Ports for Clean Infrastructure Investments to Increase Capacity, Bolster Competitiveness, & Create New Jobs

US Senate News:

Source: United States Senator for Washington Maria Cantwell

10.29.24

$82M Goes to WA Ports for Clean Infrastructure Investments to Increase Capacity, Bolster Competitiveness, & Create New Jobs

$63.8M to Port of Anacortes & $9.4M to Port of Port Angeles, plus planning grants for Anacortes, Seattle, Bellingham, Seaport Alliance from EPA’s new Clean Ports Program

WASHINGTON, D.C. – Today, U.S. Senator Maria Cantwell (D-WA), U.S. Senator Patty Murray (D-WA), U.S. Representative Rick Larsen (D, WA-02), and U.S. Representative Derek Kilmer (D, WA-06) announced six grants to help ports in the State of Washington invest in critical infrastructure upgrades. The competitive grants were awarded by the Environmental Protection Agency’s (EPA) Clean Ports Program, one of many important infrastructure upgrades and carbon reduction initiatives that the lawmakers supported in the historic Inflation Reduction Act.

The Port of Anacortes is receiving $63.8 million to fund a major conversion of port equipment to battery electric power and $1.3 million for additional planning work.

“This major federal investment will enable the Port of Anacortes to electrify its operations and bring in much-needed new cargo handling equipment that will help the Port expand. Boosting the Port’s efficiency and capacity will create 50 new high-paying jobs, introduce more apprenticeships, and maintain payrolls for over 1,000 locals currently employed by the Port and its tenants,” said Sen. Cantwell.

“The Port of Anacortes is an important part of Washington state’s maritime infrastructure and a huge mover for Skagit County’s economy—these federal resources will help ensure the Port can more quickly implement its zero-emissions strategy while creating local jobs,” said Sen. Murray. “I was proud to help pass the Inflation Reduction Act and help secure a landmark investment in building a stronger, clean energy economy—it’s good to see federal dollars come back to Anacortes. As Senate Appropriations Chair, I will continue to fight for investments that fuel our clean energy transition while strengthening our economy.”

“You cannot have a big-league economy with little league infrastructure,” said Rep. Larsen, the lead Democrat on the Transportation & Infrastructure Committee. “Thanks to the Inflation Reduction Act, the Port of Anacortes has the funding it needs to electrify cargo handling operations on the Guemes Channel waterfront and reduce emissions. Congress must continue to make bold, long-term investments in Northwest Washington ports to create more jobs and build a cleaner and greener future.”

With the funds, the Port of Anacortes will buy a range of new battery electric equipment including five tow tractors, 16 forklifts, six marine travel lifts/cranes, five boom/aerial lifts, two material handlers, and seven vessels. This will improve community engagement, grow workforce opportunities, and increase access to quality jobs, while lowering local air pollution. The Port is contributing $10,312,006 towards the project.

The Port of Port Angeles is receiving $9.4 million to purchase all-electric, zero emissions cargo handling equipment and enhance shore power offerings.

“The Port of Port Angeles links the forest products industry with customers across the globe. Investing in new shore power and electric equipment will reduce costs for the Port, its tenants, and forest products businesses that support more than 1,500 jobs on the Olympic Peninsula,” said Sen. Cantwell.

“From replacing equipment fueled by diesel to building out new charging and grid infrastructure—this federal funding will help Port Angeles reduce emissions, create more jobs, and compete in the 21^st century,” said Sen. Murray. “I was proud to help pass the Inflation Reduction Act and help secure a landmark investment in building a stronger, clean energy economy—it’s good to see federal dollars come back to the Olympic Peninsula. As Senate Appropriations Chair, I will continue to fight for investments that fuel our clean energy transition while strengthening our economy.”

“Our ports are amazing engines of economic growth and opportunity,” said Rep. Kilmer. “That’s why this investment from the EPA is such a big deal, especially for folks on the Olympic Peninsula. Thanks to funding from the Inflation Reduction Act, we are taking major steps toward improved safety, decreased costs, and reduced emissions at the Port of Port Angeles, without the costs falling solely on the backs of local taxpayers. As a Port Angeles native, I’m proud to have supported this important project and look forward to a bright future for the port and for workers in our community.”

With the funds, the Port of Port Angeles will buy a variety of new zero emissions equipment including a reachstacker for handling heavy cargo, a conveyor for handling bulk cargo, and clean forklifts for handling lighter cargo. This investment will replace existing diesel equipment. The Port will also enhance their shore power offerings, upgrading the electrical service cabinets and buying mobile shore power cable management units.

In addition, the EPA awarded three planning grants under the Clean Ports Program. The Northwest Seaport Alliance received $3 million, the Port of Seattle received $2.9 million, and the Port of Bellingham received $1.5 million.

The Inflation Reduction Act of 2022 created and provided $3 billion in funding for the Clean Ports Program to jumpstart investments in zero-emission port equipment and infrastructure, as well as improve climate and air quality planning at U.S. ports. The goals of the Clean Ports Program are to:

Build a foundation for the port sector to transition over time to fully zero-emissions operations, positioning ports to serve as a catalyst for transformational change across the freight sector.
Reduce diesel pollution (criteria pollutants, GHGs, and air toxics) in near-port communities.
Help ensure that meaningful community engagement and emissions reduction planning are port industry standard practices.

Sen. Cantwell advocated for creation of EPA’s Clean Ports Program as part of the Inflation Reduction Act, and has consistently championed investments in Washington’s ports. Along with securing the Water Resources Development Act in the 2023 NDAA, Sen. Cantwell also successfully fought to include the 2019 legislation that reauthorized U.S. Department of Transportation’s Maritime Administration’s Port Infrastructure Development Program (PIDP), which she co-authored. As Chair of the Senate Committee on Commerce, Science, and Transportation, Sen. Cantwell worked to include a record $2.25 billion for the PIDP in the Biden-Harris Infrastructure Law. In September 2021, Sen. Cantwell led a letter calling to boost funding for the PIDP program to help address the ongoing issues with port congestion. Subsequently, in 2022, the U.S. Department of Transportation’s Maritime Administration’s (MARAD) awarded $71.4 million in PIDP funding to five ports in Washington state.

As then Assistant Majority Leader, Sen. Murray helped ensure passage of the Inflation Reduction Act and worked to help establish EPA’s Clean Ports Program. As Senate Appropriations Chair, in Fiscal Year 2024, Sen. Murray secured $9.29 billion in essential funding for EPA’s critical responsibilities to protect our environment and public health. Under tough fiscal constraints, Sen. Murray provided modest increases across all EPA programs in the face of drastic cuts proposed by House Republicans—ensuring EPA could keep researchers, scientists, and other specialists on the job to safeguard our environment and make today’s awards possible.

Sen. Murray has been a champion of Washington state’s ports, from making sure ports were eligible for the RAISE (originally TIGER) grant program she created as Chair of the Transportation Appropriations Subcommittee in 2009. The RAISE program Sen. Murray established marked the first time port authorities were eligible to apply for competitive federal grants. As a senior member—and now Chair—of the appropriations committee, Sen. Murray helped create and fund PIDP; the competitive grant program was established in the Fiscal Year 2019 transportation appropriations bill, which was enacted in February 2019. Since then, Sen. Murray has played a key role in securing more than $1.2 billion funding for PIDP in annual appropriations bills since its inception. Sen. Murray also fought to make sure the Bipartisan Infrastructure Law included $2.25 billion over five years for PIDP.

MIL OSI USA News –

January 25, 2025

MIL-OSI Economics: Good news for the Páramos at COP16

Source: CAF Development Bank of Latin America

CAF -development bank of Latin America and the Caribbean, with the support of Cumbres Blancas, positioned itself at the COP16 in Cali as the first multilateral institution to address the protection of the páramos with a comprehensive vision that seeks not only environmental conservation, but also the improvement of the quality of life of local communities that depend on these ecosystems.

High mountain ecosystems, especially páramos, play a fundamental role in environmental sustainability and the well-being of millions of people. However, climate change, unsustainable land use and other human activities are seriously threatening these strategic ecosystems.

In this context, the páramos, which are found exclusively in Colombia, Ecuador, Peru and Venezuela, are recognized as the most biodiverse high mountain ecosystems in the world. They are home to more than 35,000 species of plants and vertebrates, ranking first in diversity of birds, mammals and amphibians, and second in reptiles. In addition, these ecosystems provide critical services to more than 60 million people who depend directly on their resources, including water and energy supply for cities such as Bogotá, Quito, and Cuenca.

The alliance with Cumbres Blancas reflects the institution’s commitment to promote concrete actions for the restoration and protection of the páramos, and aims to develop initiatives such as the construction of community nurseries, the creation of green employment capacities, and the restoration of watersheds, which are vital to guarantee access to drinking water and energy in these regions.

CAF’s strategic actions in the páramos are aimed not only at mitigating the impacts of climate change, but also at fostering the resilience of the communities living in these territories. Community nurseries, for example, will be a fundamental tool for restoring native flora and reforesting degraded areas. In addition, the creation of green jobs in sectors such as sustainable agriculture and natural resource management will directly contribute to improving the socioeconomic conditions of local populations.

Alicia Montalvo, CAF’s Climate Action and Positive Biodiversity Manager, said, “The challenge we face is not only to protect the biodiversity of the páramos, but to translate our knowledge and efforts into concrete actions to ensure their preservation. Our collaboration with ACTO and other institutions is key to obtaining accurate data and coordinating regional efforts, ensuring that resources are optimally invested where they are most needed.

CAF has already launched several initiatives in the region, ranging from ecological restoration to the promotion of sustainable bio-businesses. One of the most outstanding examples is the work being carried out with the 56 Puruhá indigenous communities of the Cotopaxi páramo, in Ecuador, through a bio-business project promoted together with the Global Environmental Facility (GEF), the Ministry of the Environment and the Heifer Foundation. This project aims to strengthen the organic quinoa production chain and improve the socioeconomic conditions of more than 600 families.

In addition, CAF is promoting, in collaboration with the GEF, a project that seeks to reduce the climate risk affecting paramo populations in Colombia, Ecuador, Peru, and Bolivia. This initiative will directly benefit more than 360,000 people, improving the capacity to adapt to climate change in these vulnerable areas. The goal is to ensure that these strategic ecosystems can continue to provide vital services to local populations.

MIL OSI Economics –

January 25, 2025

MIL-OSI New Zealand: Buy NZ Made – Tough Christmas ahead for small businesses

Source: Buy NZ Made

With the 2024 holiday shopping season set to be one of the most challenging on record, Buy NZ Made is urging Kiwis to support local businesses this Christmas.

Buy NZ Made executive director Dane Ambler says rising costs, economic uncertainty, and ongoing global challenges have put immense pressure on small businesses across the country.

“Christmas is traditionally a peak period for small businesses but the high cost of living is taking a bite out of disposable income and despite their resilience, many small businesses are finding it hard to keep the lights on.

“Business and consumer confidence seems to be improving, inflation is falling, and it looks like New Zealand’s economy is turning a corner – but we’re not out of the woods yet. It is more important than ever for consumers to choose local products and services to help their small businesses thrive.”

Small businesses make up 97% of New Zealand’s economy and are often family-owned and operated. Kiwis are encouraged to buy one locally-made item to help their local stay afloat this NZ Made Day – November 21.

Ambler says every dollar spent locally can have a ripple effect.

“Buying local means providing essential income and livelihood for many New Zealanders. It minimises transportation distances and emissions, contributing to a more sustainable future too.

“So shop early, plan ahead, and prioritise local businesses when making your holiday purchases. You can make a significant difference for small business and ensure a brighter future for New Zealand’s economy.”

MIL OSI New Zealand News –

January 25, 2025

Category: Business

Frosts and freezes

Storms and floods

Fire and heat

Lessons for today

$82M Goes to WA Ports for Clean Infrastructure Investments to Increase Capacity, Bolster Competitiveness, & Create New Jobs

$63.8M to Port of Anacortes & $9.4M to Port of Port Angeles, plus planning grants for Anacortes, Seattle, Bellingham, Seaport Alliance from EPA’s new Clean Ports Program

Source: Buy NZ Made