Category: Business

  • MIL-OSI: Bread Financial Provides Performance Update for September 2024

    Source: GlobeNewswire (MIL-OSI)

    COLUMBUS, Ohio, Oct. 24, 2024 (GLOBE NEWSWIRE) — Bread Financial Holdings, Inc.® (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, provided a performance update. The following tables present the Company’s net loss rate and delinquency rate for the periods indicated.

      For the
    month ended
    September 30, 2024
      For the
    three months ended
    September 30, 2024
      (dollars in millions)
    End-of-period credit card and other loans $ 17,933     $ 17,933  
    Average credit card and other loans (1) $ 17,955     $ 17,766  
    Year-over-year change in average credit card and other loans (1)   3 %     1 %
    Net principal losses $ 110     $ 347  
    Net loss rate (1)   7.4 %     7.8 %
                   
      As of
    September 30, 2024
      As of
    September 30, 2023
      (dollars in millions)
    30 days + delinquencies – principal $ 1,062     $ 1,038  
    Period ended credit card and other loans – principal $ 16,476     $ 16,585  
    Delinquency rate   6.4 %     6.3 %

    __________________________________________________________________________

    (1) Beginning in January 2024, we revised the calculation of Average credit card and other loans to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, Average credit card and other loans represent the average balance of the loans at the beginning and end of each month, averaged over the periods indicated. Consequentially, the calculations for Year-over-year change in average credit card and other loans and Net loss rate differ for the periods presented.

    About Bread Financial® 
    Bread Financial® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback® American Express® Credit Card, Bread Rewards™ American Express® Credit Card and Bread Savings® products.    
         
    Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.

    Forward-Looking Statements
    This release contains 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. Forward-looking statements give our expectations or forecasts of future events and can generally be identified by the use of words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “project,” “plan,” “likely,” “may,” “should” or other words or phrases of similar import. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding, and the guidance we give with respect to, our anticipated operating or financial results, future financial performance and outlook, future dividend declarations, and future economic conditions.

    We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control. Accordingly, our actual results could differ materially from the projections, anticipated results or other expectations expressed in this release, and no assurances can be given that our expectations will prove to have been correct. Factors that could cause the outcomes to differ materially include, but are not limited to, the following: macroeconomic conditions, including market conditions, inflation, higher interest rates, labor market conditions, recessionary pressures or a concern over a prolonged economic slowdown, and the related impact on consumer spending behavior, payments, debt levels, savings rates and other behavior; global political and public health events and conditions, including ongoing wars and military conflicts and natural disasters; future credit performance, including the level of future delinquency and write-off rates; the loss of, or reduction in demand from, significant brand partners or customers in the highly competitive markets in which we compete; the concentration of our business in U.S. consumer credit; inaccuracies in the models and estimates on which we rely, including the amount of our Allowance for credit losses and our credit risk management models; the inability to realize the intended benefits of acquisitions, dispositions and other strategic initiatives; our level of indebtedness and ability to access financial or capital markets; pending and future federal and state legislation, regulation, supervisory guidance, and regulatory and legal actions, including, but not limited to, those related to financial regulatory reform and consumer financial services practices, as well as any such actions with respect to late fees, interchange fees or other charges; impacts arising from or relating to the transition of our credit card processing services to third party service providers that we completed in 2022; failures or breaches in our operational or security systems, including as a result of cyberattacks, unanticipated impacts from technology modernization projects or otherwise; and any tax or other liability or adverse impacts arising out of or related to the spinoff of our former LoyaltyOne segment or the bankruptcy filings of Loyalty Ventures Inc. (LVI) and certain of its subsidiaries and subsequent litigation or other disputes. In addition, the Consumer Financial Protection Bureau (CFPB) has issued a final rule that, absent a successful legal challenge, will place significant limits on credit card late fees, which would have a significant impact on our business and results of operations for at least the short term and, depending on the effectiveness of the mitigating actions that we have taken or may in the future take in anticipation of, or in response to, the final rule, may potentially adversely impact us over the long term; we cannot provide any assurance as to the effective date of the rule, the result of any pending or future challenges or other litigation relating to the rule, or our ability to mitigate or offset the impact of the rule on our business and results of operations. The foregoing factors, along with other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements, are described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

    Contacts
    Brian Vereb – Investor Relations
    Brian.Vereb@BreadFinancial.com

    Susan Haugen – Investor Relations
    Susan.Haugen@BreadFinancial.com

    Rachel Stultz – Media
    Rachel.Stultz@BreadFinancial.com

    The MIL Network

  • MIL-OSI: Fidelity D & D Bancorp, Inc.: Increases for Ten Consecutive Years with 5% Rise in Fourth Quarter 2024 Dividend

    Source: GlobeNewswire (MIL-OSI)

    DUNMORE, Pa., Oct. 24, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC), parent company of The Fidelity Deposit and Discount Bank, announce their declaration of the Company’s fourth quarter dividend of $0.40 per share, a 5% increase above the prior quarterly cash dividend of $0.38 per share.

    “On behalf of the Board of Directors and all Fidelity Bankers, we are proud to announce our fourth quarter cash dividend increase, marking ten consecutive years of increasing and a more than doubling of the dividend paid over the period. This milestone reflects ongoing targeted reinvestment from the creation of sustainable value to our shareholders and the communities we serve,” shared Daniel J. Santaniello, President & Chief Executive Officer. “As we look toward future growth, we remain deeply grateful for the continued support of our dedicated Bankers, valued clients, loyal shareholders, and the communities we serve.”

    The cash dividend of $0.40 per share is payable December 10, 2024 to shareholders of record at the close of business on November 15, 2024.

    Fidelity D & D Bancorp, Inc. serves Lackawanna, Luzerne and Northampton Counties through The Fidelity Deposit and Discount Bank’s 21 full-service community banking offices, along with the Fidelity Bank Wealth Management Minersville Office in Schuylkill County. Fidelity Bank provides a digital and virtual experience via digital services and digital account opening through online banking and mobile app.

    For more information visit our investor relations web site through www.bankatfidelity.com.

    This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Actual results and trends could differ materially from those set forth in such statements due to various factors.  These factors include the possibility that increased demand or prices for the company’s financial services and products may not occur, changing economic, interest rate and competitive conditions, technological developments and other risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission.
    Contacts:  
    Daniel J. Santaniello
    President and Chief Executive Officer
    570-504-8035
    Salvatore R. DeFrancesco, Jr.
    Treasurer and Chief Financial Officer
    570-504-8000

    The MIL Network

  • MIL-OSI: ConnectOne Bancorp, Inc. Reports Third Quarter 2024 Results; Declares Common and Preferred Dividends

    Source: GlobeNewswire (MIL-OSI)

    ENGLEWOOD CLIFFS, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $15.7 million for the third quarter of 2024 compared with $17.5 million for the second quarter of 2024 and $19.9 million for the third quarter of 2023. Included in net income available to common stockholders’ was merger and restructuring pre-tax expenses of $0.7 million for the third quarter of 2024, while there were no such charges during the second quarter of 2024 and the third quarter of 2023. Diluted earnings per share were $0.41 for the third quarter of 2024 compared with $0.46 for the second quarter of 2024 and $0.51 for the third quarter of 2023. Return on average assets was 0.70%, 0.79% and 0.88% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Return on average tangible common equity was 6.93%, 7.98% and 9.11% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.

    Operating net income available to common stockholders, which excludes non-operating items, was $16.1 million for the third quarter of 2024, $17.9 million for the second quarter of 2024 and $20.4 million for the third quarter of 2023. Operating diluted earnings per share were $0.42 for the third quarter of 2024, $0.47 for the second quarter of 2024 and $0.52 for the third quarter of 2023. Operating return on average assets was 0.72%, 0.80% and 0.90% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. Operating return on average tangible common equity was 7.03%, 8.05% and 9.21% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.

    The decrease in net income available to common stockholders and diluted earnings per share from the second quarter of 2024 was primarily due to a $1.3 million increase in the provision for credit losses, a $1.0 million increase in noninterest expenses, and a $0.6 million decrease in net interest income, partially offset by a $0.7 million decrease in income tax expenses and a $0.3 million increase in noninterest income. The decrease in net income available to common stockholders from the third quarter of 2023 was primarily due to a $2.9 million increase in noninterest expenses, a $2.3 million increase in the provision for credit losses, and a $1.5 million decrease in net interest income, partially offset by a $1.2 million increase in noninterest income and a $1.2 million decrease in income tax expense. The increases in noninterest expenses when compared to the prior sequential quarter and the prior year quarter included the impact of the aforementioned $0.7 million of merger and restructuring expense that occurred during the third quarter of 2024.

    “In September, we announced a planned merger with The First of Long Island Corporation, a transaction that we believe will create a truly premier New York-metro community bank,” commented Frank Sorrentino, ConnectOne’s Chairman and Chief Executive Officer. “Our integration planning is off to a good start, the initial regulatory process is underway, and we’re excited about creating a significantly enhanced platform for continued growth across all markets and communities we serve. Further, the economic environment and interest rate outlook confirms our belief that this combination will deliver meaningful benefits to our communities, clients and shareholders. We look forward to updating you on our progress in the months and quarters ahead.”

    Mr. Sorrentino added, “Meanwhile, we remain focused and committed to our client-first culture and relationship banking model. During the first nine months of the year, we have actively reduced non-relationship loans from our balance sheet in an effort to improve our loan-to-deposit ratio, diversify our loan mix, and capitalize on the improving interest rate environment.”

    “The net interest margin, for the third quarter, on a core basis was flat; however, as a result of the Fed’s 50 basis-point cut in late September, we ended the quarter with a so-called spot margin upwards of 10 basis points wider. And with our liability-sensitive balance sheet, we are positioned to drive increased profitability through the fourth quarter, into 2025 and post-merger completion.”

    Dividend Declarations

    The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on December 2, 2024, to common stockholders of record on November 15, 2024. A dividend of $0.328125 per depositary share, representing a 1/40th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on December 2, 2024 to holders of record on November 15, 2024.

    Operating Results

    Fully taxable equivalent net interest income for the third quarter of 2024 was $61.7 million, a decrease of $0.5 million, or 0.9%, from the second quarter of 2024, due to a five basis-point contraction of the net interest margin to 2.67% from 2.72%. During the third quarter of 2024, average loans decreased $89.4 million, or 1.1% when compared to the second quarter of 2024. The contraction of the net interest margin was primarily due to an increase in average cash balances during the third quarter of 2024, as well as a decrease in loan prepayment fees and nonaccrual loan interest recapture. The net interest margin is expected to increase by 10 basis points or more in the fourth quarter of 2024 reflecting the Fed’s actual and expected rate cuts along with deployment of excess cash-on-hand.

    Fully taxable equivalent net interest income for the third quarter of 2024 decreased by $1.5 million, or 2.4%, from the third quarter of 2023. The decrease from the third quarter of 2023 resulted primarily from a nine basis-point contraction in the net interest margin to 2.67% from 2.76%. During the third quarter of 2024, average loans decreased by $45.9 million, or 0.6% when compared to the third quarter of 2023. The contraction of the net interest margin for the third quarter of 2024 when compared to the third quarter of 2023 was primarily attributable to a 40 basis-point increase in the average cost of deposits, including noninterest-bearing deposits, partially offset by a 24 basis-point increase in the loan portfolio yield.

    Noninterest income was $4.7 million in the third quarter of 2024, $4.4 million in the second quarter of 2024 and $3.6 million in the third quarter of 2023. The $0.3 million increase in noninterest income for the third quarter of 2024 when compared to the second quarter of 2024 was due to a $0.6 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits and a $0.2 million increase in other deposit, loan and other income, partially offset a $0.9 million decrease in net gains on sale of loans held-for-sale. The $1.2 million increase in noninterest income for the third quarter of 2024 when compared to the third quarter of 2023 was due to a $0.7 million increase in net gains on equity securities, a $0.4 million increase in BOLI death benefits received, a $0.2 million increase in BOLI income, a $0.1 million increase in BoeFly income, and a $0.1 million increase in other deposit, loan and other income, partially offset by a decrease in net gains on sale of loans held-for-sale of $0.3 million.

    Noninterest expenses were $38.6 million for the third quarter of 2024, $37.6 million for the second quarter of 2024 and $35.8 million for the third quarter of 2023. The $1.0 million increase in noninterest expenses for the third quarter of 2024 when compared to the second quarter of 2024 was primarily due to a $0.7 million increase in merger and restructuring expenses, a $0.3 million increase in information and technology communications, a $0.2 million increase in salaries and employee benefits and a $0.2 million increase in professional and consulting fees, partially offset by decreases in other expenses of $0.4 million. The $2.9 million increase in noninterest expenses for the third quarter of 2024 when compared to the third quarter of 2023 was primarily due to a $1.0 million increase in information technology and communications, a $0.7 million increase in merger and restructuring expenses, a $0.7 million increase in salaries and employee benefits, a $0.3 million increase in professional and consulting, a $0.2 million increase in occupancy and equipment and a $0.1 million increase in marketing and advertising, partially offset by a decrease in other expenses of $0.1 million. The increases in information technology and communications when compared to the second quarter of 2024 and the third quarter of 2023 are attributable to additional investments in technology, equipment, and software. The increase in salaries and employee benefits when compared to the second quarter of 2024 was primarily attributable to increases in incentive-based compensation accruals, partially offset by decreases in payroll tax expenses and other employee benefit expenses. The increase in salaries and employee benefits when compared to the third quarter of 2023 was primarily attributable to increases in incentive-based compensation accruals, and an increase in other employee benefit expenses, partially offset by decreases in stock-compensation expenses.

    Income tax expense was $6.0 million for the third quarter of 2024, $6.7 million for the second quarter of 2024 and $7.2 million for the third quarter of 2023. The effective tax rates for the second quarter of 2024, first quarter of 2024 and second quarter of 2023 were 26.0%, 26.0% and 25.2%, respectively.

    Asset Quality

    The provision for credit losses was $3.8 million for the third quarter of 2024, $2.5 million for the second quarter of 2024 and $1.5 million for the third quarter of 2023. The increase in the current quarter’s provision for credit losses from both the second quarter of 2024 and the third quarter of 2023 was primarily due to increases in specific reserves, partially offset by decreases in general reserves.

    Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), was $51.3 million as of September 30, 2024, $52.5 million as of December 31, 2023 and $56.1 million as of September 30, 2023. Nonperforming assets as a percentage of total assets was 0.53% as of September 30, 2024, 0.53% as of December 31, 2023 and 0.58% as of September 30, 2023. The ratio of nonaccrual loans to loans receivable was 0.63%, 0.63% and 0.69%, as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively. The annualized net loan charge-offs ratio was 0.17% for the third quarter of 2024, 0.43% for the fourth quarter of 2023 and 0.12% for the third quarter of 2023. The allowance for credit losses represented 1.02%, 0.98%, and 1.08% of loans receivable as of September 30, 2024, December 31, 2023, and September 30, 2023, respectively. The allowance for credit losses as a percentage of nonaccrual loans was 160.8% as of September 30, 2024, 156.1% as of December 31, 2023 and 157.4% as of September 30, 2023. Criticized and classified loans as a percentage of total loans was 2.23% as of September 30, 2024, up from 1.35% as of December 31, 2023 and up from 1.44% as of September 30, 2023. The increase is primarily due to a loan modification of one CRE relationship that was moved to special mention. Loans delinquent 30 to 89 days was 0.16% of loans as of September 30, 2024, down from 0.30% as of December 31, 2023 and up from 0.04% as of September 30, 2023.

    Selected Balance Sheet Items

    The Company’s total assets were $9.639 billion as of September 30, 2024, compared to $9.856 billion as of December 31, 2023. Loans receivable were $8.112 billion as of September 30, 2024 and $8.345 billion as of December 31, 2023. Total deposits were $7.524 billion as of September 30, 2024 and $7.536 billion as of December 31, 2023.

    The Company’s total stockholders’ equity was $1.239 billion as of September 30, 2024 and $1.217 billion as of December 31, 2023. The increase in total stockholders’ equity was primarily attributable to an increase in retained earnings of $28.5 million, partially offset by an increase in accumulated other comprehensive losses of approximately $1.6 million and increases in treasury stock of approximately $5.8 million. As of September 30, 2024, the Company’s tangible common equity ratio and tangible book value per share were 9.71% and $23.85, respectively, compared to 9.25% and $23.14, respectively, as of December 31, 2023. Total goodwill and other intangible assets were $213.3 million as of September 30, 2024, and $214.2 million as of December 31, 2023.

    Use of Non-GAAP Financial Measures

    In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

    Third Quarter 2024 Results Conference Call

    Management will also host a conference call and audio webcast at 10:00 a.m. ET on October 24, 2024 to review the Company’s financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 5504182. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the “Investor Relations” link on the Company’s website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

    A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, October 24, 2024 and ending on Thursday, October 31, 2024 by dialing 1 (609) 800-9909, access code 5504182. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

    About ConnectOne Bancorp, Inc.

    ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank’s fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol “CNOB,” and information about ConnectOne may be found at https://www.connectonebank.com.

    This news release contains certain forward-looking statements which are based on certain assumptions and describe future plans, strategies, and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company’s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

    Investor Contact:
    William S. Burns
    Senior Executive Vice President & CFO
    201.816.4474: bburns@cnob.com

    Media Contact:
    Shannan Weeks 
    MikeWorldWide
    732.299.7890: sweeks@mww.com

    CONNECTONE BANCORP, INC. AND SUBSIDIARIES            
    CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION          
    (in thousands)            
                 
      September 30,   December 31,   September 30,  
        2024       2023       2023    
      (unaudited)       (unaudited)  
    ASSETS            
    Cash and due from banks $ 61,093     $ 61,421     $ 56,170    
    Interest-bearing deposits with banks   186,155       181,293       197,128    
    Cash and cash equivalents   247,248       242,714       253,298    
                 
    Investment securities   646,713       617,162       581,867    
    Equity securities   20,399       18,564       17,677    
                 
    Loans receivable   8,111,976       8,345,145       8,181,109    
    Less: Allowance for credit losses – loans   82,494       81,974       88,230    
    Net loans receivable   8,029,482       8,263,171       8,092,879    
                 
    Investment in restricted stock, at cost   42,772       51,457       49,387    
    Bank premises and equipment, net   29,068       30,779       28,432    
    Accrued interest receivable   46,951       49,108       46,795    
    Bank owned life insurance   242,016       237,644       236,009    
    Right of use operating lease assets   14,211       12,007       11,229    
    Goodwill   208,372       208,372       208,372    
    Core deposit intangibles   4,935       5,874       6,222    
    Other assets   107,436       118,751       146,718    
    Total assets $ 9,639,603     $ 9,855,603     $ 9,678,885    
                 
    LIABILITIES            
    Deposits:            
    Noninterest-bearing $ 1,262,568     $ 1,259,364     $ 1,224,125    
    Interest-bearing   6,261,537       6,276,838       6,214,370    
    Total deposits   7,524,105       7,536,202       7,438,495    
    Borrowings   742,133       933,579       887,590    
    Subordinated debentures, net   79,818       79,439       79,313    
    Operating lease liabilities   15,252       13,171       12,424    
    Other liabilities   38,799       76,592       72,909    
    Total liabilities   8,400,107       8,638,983       8,490,731    
                 
    COMMITMENTS AND CONTINGENCIES            
                 
    STOCKHOLDERS’ EQUITY            
    Preferred stock   110,927       110,927       110,927    
    Common stock   586,946       586,946       586,946    
    Additional paid-in capital   34,995       33,182       32,027    
    Retained earnings   619,497       590,970       579,776    
    Treasury stock   (76,116 )     (70,296 )     (68,108 )  
    Accumulated other comprehensive loss   (36,753 )     (35,109 )     (53,414 )  
    Total stockholders’ equity   1,239,496       1,216,620       1,188,154    
    Total liabilities and stockholders’ equity $ 9,639,603     $ 9,855,603     $ 9,678,885    
                 
    CONNECTONE BANCORP, INC. AND SUBSIDIARIES                
    CONSOLIDATED STATEMENTS OF INCOME                
    (dollars in thousands, except for per share data)                
                     
      Three Months Ended Nine Months Ended  
      09/30/24   09/30/23   09/30/24   09/30/23  
    Interest income                
    Interest and fees on loans $ 119,280   $ 115,405     $ 359,513   $ 333,356    
    Interest and dividends on investment securities:                
    Taxable   4,740     4,128       13,757     12,386    
    Tax-exempt   1,119     1,136       3,394     3,475    
    Dividends   1,048     907       3,390     2,750    
    Interest on federal funds sold and other short-term investments   4,055     2,110       9,802     9,141    
    Total interest income   130,242     123,686       389,856     361,108    
    Interest expense                
    Deposits   63,785     56,043       186,278     146,844    
    Borrowings   5,570     5,286       20,952     20,980    
    Total interest expense   69,355     61,329       207,230     167,824    
                     
    Net interest income   60,887     62,357       182,626     193,284    
    Provision for credit losses   3,800     1,500       10,300     5,500    
    Net interest income after provision for credit losses   57,087     60,857       172,326     187,784    
                     
    Noninterest income                
    Deposit, loan and other income   1,817     1,605       5,063     4,553    
    Income on bank owned life insurance   2,145     1,597       5,486     4,681    
    Net gains on sale of loans held-for-sale   343     633       2,126     1,232    
    Net losses (gains) on equity securities   432     (273 )     309     (674 )  
    Total noninterest income   4,737     3,562       12,984     9,792    
                     
    Noninterest expenses                
    Salaries and employee benefits   22,957     22,251       67,809     66,213    
    Occupancy and equipment   2,889     2,738       8,797     8,176    
    FDIC insurance   1,800     1,800       5,400     4,465    
    Professional and consulting   2,147     1,834       5,998     5,960    
    Marketing and advertising   635     554       1,925     1,642    
    Information technology and communications   4,464     3,487       13,051     10,192    
    Merger and restructuring   742           742        
    Amortization of core deposit intangibles   297     347       939     1,090    
    Other expenses   2,710     2,773       8,639     8,366    
    Total noninterest expenses   38,641     35,784       113,300     106,104    
                     
    Income before income tax expense   23,183     28,635       72,010     91,472    
    Income tax expense   6,022     7,228       18,588     23,742    
    Net income   17,161     21,407       53,422     67,730    
    Preferred dividends   1,509     1,509       4,527     4,527    
    Net income available to common stockholders $ 15,652   $ 19,898     $ 48,895   $ 63,203    
                     
    Earnings per common share:                
    Basic $ 0.41   $ 0.51     $ 1.27   $ 1.62    
    Diluted   0.41     0.51       1.27     1.61    
                     
    ConnectOne’s management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.  
                         
    CONNECTONE BANCORP, INC.                    
    SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES                    
                         
      As of  
      Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,  
        2024       2024       2024       2023       2023    
    Selected Financial Data (dollars in thousands)  
    Total assets $ 9,639,603     $ 9,723,731     $ 9,853,964     $ 9,855,603     $ 9,678,885    
    Loans receivable:                    
    Commercial $ 1,505,743     $ 1,491,079     $ 1,561,063     $ 1,564,768     $ 1,464,479    
    Commercial real estate   3,261,160       3,274,941       3,333,488       3,342,603       3,288,704    
    Multifamily   2,482,258       2,499,581       2,507,893       2,566,904       2,559,927    
    Commercial construction   616,087       639,168       646,593       620,496       622,748    
    Residential   250,249       256,786       254,214       256,041       251,416    
    Consumer   835       945       850       1,029       936    
    Gross loans   8,116,332       8,162,500       8,304,101       8,351,841       8,188,210    
    Net deferred loan fees   (4,356 )     (4,597 )     (6,144 )     (6,696 )     (7,101 )  
    Loans receivable   8,111,976       8,157,903       8,297,957       8,345,145       8,181,109    
    Loans held-for-sale         435                      
    Total loans $ 8,111,976     $ 8,158,338     $ 8,297,957     $ 8,345,145     $ 8,181,109    
                         
    Investment and equity securities $ 667,112     $ 640,322     $ 638,854     $ 635,726     $ 599,544    
    Goodwill and other intangible assets   213,307       213,604       213,925       214,246       214,594    
    Deposits:                    
    Noninterest-bearing demand $ 1,262,568     $ 1,268,882     $ 1,290,523     $ 1,259,364     $ 1,224,125    
    Time deposits   2,614,187       2,593,165       2,623,391       2,531,371       2,522,210    
    Other interest-bearing deposits   3,647,350       3,713,967       3,674,740       3,745,467       3,692,160    
    Total deposits $ 7,524,105     $ 7,576,014     $ 7,588,654     $ 7,536,202     $ 7,438,495    
                         
    Borrowings $ 742,133     $ 756,144     $ 877,568     $ 933,579     $ 887,590    
    Subordinated debentures (net of debt issuance costs)   79,818       79,692       79,566       79,439       79,313    
    Total stockholders’ equity   1,239,496       1,224,227       1,216,609       1,216,620       1,188,154    
                         
    Quarterly Average Balances                    
    Total assets $ 9,742,853     $ 9,745,853     $ 9,860,753     $ 9,690,746     $ 9,625,625    
    Loans receivable:                    
    Commercial $ 1,485,777     $ 1,517,446     $ 1,552,360     $ 1,510,634     $ 1,471,006    
    Commercial real estate (including multifamily)   5,752,467       5,789,498       5,890,853       5,874,854       5,821,794    
    Commercial construction   628,740       652,227       637,993       630,468       625,640    
    Residential   252,975       254,284       252,965       253,200       253,114    
    Consumer   7,887       5,155       5,091       6,006       4,972    
    Gross loans   8,127,846       8,218,610       8,339,262       8,275,162       8,176,526    
    Net deferred loan fees   (4,513 )     (5,954 )     (6,533 )     (6,894 )     (7,387 )  
    Loans receivable   8,123,333       8,212,656       8,332,729       8,268,268       8,169,139    
    Loans held-for-sale   83       169       99       31       171    
    Total loans $ 8,123,416     $ 8,212,825     $ 8,332,828     $ 8,268,299     $ 8,169,310    
                         
    Investment and equity securities $ 650,897     $ 637,551     $ 633,270     $ 602,287     $ 628,429    
    Goodwill and other intangible assets   213,502       213,813       214,133       214,472       214,822    
    Deposits:                    
    Noninterest-bearing demand $ 1,259,912     $ 1,256,251     $ 1,254,201     $ 1,248,132     $ 1,275,325    
    Time deposits   2,625,329       2,587,706       2,567,767       2,495,091       2,606,122    
    Other interest-bearing deposits   3,747,427       3,721,167       3,696,374       3,747,093       3,723,561    
    Total deposits $ 7,632,668     $ 7,565,124     $ 7,518,342     $ 7,490,316     $ 7,605,008    
                         
    Borrowings $ 717,586     $ 787,256     $ 947,003     $ 823,123     $ 651,112    
    Subordinated debentures (net of debt issuance costs)   79,735       79,609       79,483       79,356       79,230    
    Total stockholders’ equity   1,234,724       1,220,621       1,220,818       1,198,389       1,202,647    
                         
      Three Months Ended  
      Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,  
        2024       2024       2024       2023       2023    
      (dollars in thousands, except for per share data)  
    Net interest income $ 60,887     $ 61,439     $ 60,300     $ 61,822     $ 62,357    
    Provision for credit losses   3,800       2,500       4,000       2,700       1,500    
    Net interest income after provision for credit losses   57,087       58,939       56,300       59,122       60,857    
    Noninterest income                    
    Deposit, loan and other income   1,817       1,654       1,592       1,545       1,605    
    Income on bank owned life insurance   2,145       1,677       1,664       1,635       1,597    
    Net gains on sale of loans held-for-sale   343       1,277       506       472       633    
    Net gains (losses) on equity securities   432       (209 )     86       557       (273 )  
    Total noninterest income   4,737       4,399       3,848       4,209       3,562    
    Noninterest expenses                    
    Salaries and employee benefits   22,957       22,721       22,131       22,010       22,251    
    Occupancy and equipment   2,889       2,899       3,009       2,708       2,738    
    FDIC insurance   1,800       1,800       1,800       3,900       1,800    
    Professional and consulting   2,147       1,923       1,928       1,587       1,834    
    Marketing and advertising   635       613       677       323       554    
    Information technology and communications   4,464       4,198       4,389       4,148       3,487    
    Merger and restructuring   742                            
    Amortization of core deposit intangible   297       321       321       348       347    
    Other expenses   2,710       3,119       2,810       2,821       2,773    
    Total noninterest expenses   38,641       37,594       37,065       37,845       35,784    
                         
    Income before income tax expense   23,183       25,744       23,083       25,486       28,635    
    Income tax expense   6,022       6,688       5,878       6,213       7,228    
    Net income   17,161       19,056       17,205       19,273       21,407    
    Preferred dividends   1,509       1,509       1,509       1,509       1,509    
    Net income available to common stockholders $ 15,652     $ 17,547     $ 15,696     $ 17,764     $ 19,898    
                         
    Weighted average diluted common shares outstanding   38,525,484       38,448,594       38,511,747       38,651,391       38,829,681    
    Diluted EPS (GAAP) $ 0.41     $ 0.46     $ 0.41     $ 0.46     $ 0.51    
                         
    Reconciliation of GAAP Net Income to Operating Net Income:                    
    Net income $ 17,161     $ 19,056     $ 17,205     $ 19,273     $ 21,407    
    Merger and restructuring   742                            
    Amoritization of core deposit intangibles   297       321       321       348       347    
    FDIC special assessment                     2,100          
    Net (gains) losses on equity securities   (432 )     209       (86 )     (557 )     273    
    Tax impact of adjustments   (171 )     (149 )     (66 )     (569 )     (187 )  
    Operating net income $ 17,597     $ 19,437     $ 17,374     $ 20,595     $ 21,840    
    Preferred dividends   1,509       1,509       1,509       1,509       1,509    
    Operating net income available to common stockholders $ 16,088     $ 17,928     $ 15,865     $ 19,086     $ 20,331    
                         
    Opearting diluted EPS (non-GAAP)(1) $ 0.42     $ 0.47     $ 0.41     $ 0.49     $ 0.52    
                         
    Return on Assets Measures                    
    Average assets $ 9,742,853     $ 9,745,853     $ 9,860,753     $ 9,690,746     $ 9,625,625    
    Return on avg. assets   0.70 %     0.79 %     0.70 %     0.79 %     0.88 %  
    Operating return on avg. assets (non-GAAP)(2)   0.72       0.80       0.71       0.84       0.90    
    _________________________                     
    (1)Operating net income available to common stockholders divided by weighted average diluted shares outstanding.
    (2)Operating net income divided by average assets.
                         
      Three Months Ended  
      Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,  
        2024       2024       2024       2023       2023    
    Return on Equity Measures (dollars in thousands)  
    Average stockholders’ equity $ 1,234,724     $ 1,220,621     $ 1,220,818     $ 1,198,389     $ 1,202,647    
    Less: average preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )  
    Average common equity $ 1,123,797     $ 1,109,694     $ 1,109,891     $ 1,087,462     $ 1,091,720    
    Less: average intangible assets   (213,502 )     (213,813 )     (214,133 )     (214,472 )     (214,822 )  
    Average tangible common equity $ 910,295     $ 895,881     $ 895,758     $ 872,990     $ 876,898    
    Return on avg. common equity (GAAP)   5.54 %     6.36 %     5.69 %     6.48 %     7.23 %  
    Operating return on avg. common equity (non-GAAP)(3)   5.70       6.50       5.75       6.96       7.39    
    Return on avg. tangible common equity (non-GAAP)(4)   6.93       7.98       7.15       8.18       9.11    
    Operating return on avg. tangible common equity (non-GAAP)(5)   7.03       8.05       7.12       8.67       9.20    
                         
    Efficiency Measures                    
    Total noninterest expenses $ 38,641     $ 37,594     $ 37,065     $ 37,845     $ 35,784    
    Merger and restructuring   (742 )                          
    Amortization of core deposit intangibles   (297 )     (321 )     (321 )     (348 )     (347 )  
    FDIC special assessment                     (2,100 )        
    Operating noninterest expense $ 37,602     $ 37,273     $ 36,744     $ 35,397     $ 35,437    
                         
    Net interest income (tax equivalent basis) $ 61,710     $ 62,255     $ 61,111     $ 62,627     $ 63,208    
    Noninterest income   4,737       4,399       3,848       4,209       3,562    
    Net (gains) losses on equity securities   (432 )     209       (86 )     (557 )     273    
    Operating revenue $ 66,015     $ 66,863     $ 64,873     $ 66,279     $ 67,043    
                         
    Operating efficiency ratio (non-GAAP)(6)   57.0 %     55.7 %     56.6 %     53.4 %     52.9 %  
                         
    Net Interest Margin                    
    Average interest-earning assets $ 9,206,038     $ 9,210,050     $ 9,323,291     $ 9,172,165     $ 9,089,431    
    Net interest income (tax equivalent basis)   61,710       62,255       61,111       62,627       63,208    
    Net interest margin (GAAP)   2.67 %     2.72 %     2.64 %     2.71 %     2.76 %  
    _________________________                     
    (3)Operating net income available to common stockholders divided by average common equity.
    (4)Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.
    (5)Operating net income available to common stockholders, divided by average tangible common equity.
    (6)Operating noninterest expense divided by operating revenue.
                         
      As of  
      Sept. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,  
        2024       2024       2024       2023       2023    
    Capital Ratios and Book Value per Share (dollars in thousands, except for per share data)  
    Stockholders equity $ 1,239,496     $ 1,224,227     $ 1,216,609     $ 1,216,620     $ 1,188,154    
    Less: preferred stock   (110,927 )     (110,927 )     (110,927 )     (110,927 )     (110,927 )  
    Common equity $ 1,128,569     $ 1,113,300     $ 1,105,682     $ 1,105,693     $ 1,077,227    
    Less: intangible assets   (213,307 )     (213,604 )     (213,925 )     (214,246 )     (214,594 )  
    Tangible common equity $ 915,262     $ 899,696     $ 891,757     $ 891,447     $ 862,633    
                         
    Total assets $ 9,639,603     $ 9,723,731     $ 9,853,964     $ 9,855,603     $ 9,678,885    
    Less: intangible assets   (213,307 )     (213,604 )     (213,925 )     (214,246 )     (214,594 )  
    Tangible assets $ 9,426,296     $ 9,510,127     $ 9,640,039     $ 9,641,357     $ 9,464,291    
                         
    Common shares outstanding   38,368,217       38,365,069       38,333,053       38,519,770       38,621,970    
                         
    Common equity ratio (GAAP)   11.71 %     11.45 %     11.22 %     11.22 %     11.13 %  
    Tangible common equity ratio (non-GAAP)(7)   9.71       9.46       9.25       9.25       9.11    
                         
    Regulatory capital ratios (Bancorp):                    
    Leverage ratio   11.10 %     10.97 %     10.73 %     10.86 %     10.86 %  
    Common equity Tier 1 risk-based ratio   11.07       10.90       10.70       10.62       10.64    
    Risk-based Tier 1 capital ratio   12.42       12.25       12.03       11.95       11.98    
    Risk-based total capital ratio   14.29       14.10       13.88       13.77       13.90    
                         
    Regulatory capital ratios (Bank):                    
    Leverage ratio   11.43 %     11.29 %     11.10 %     11.20 %     11.23 %  
    Common equity Tier 1 risk-based ratio   12.79       12.60       12.43       12.31       12.38    
    Risk-based Tier 1 capital ratio   12.79       12.60       12.43       12.31       12.38    
    Risk-based total capital ratio   13.77       13.58       13.41       13.28       13.43    
                         
    Book value per share (GAAP) $ 29.41     $ 29.02     $ 28.84     $ 28.70     $ 27.89    
    Tangible book value per share (non-GAAP)(8)   23.85       23.45       23.26       23.14       22.34    
                         
    Net Loan Charge-offs (Recoveries):                    
    Net loan charge-offs (recoveries):                    
    Charge-offs $ 3,559     $ 3,595     $ 3,185     $ 8,960     $ 2,487    
    Recoveries   (53 )     (324 )     (23 )           (8 )  
    Net loan charge-offs $ 3,506     $ 3,271     $ 3,162     $ 8,960     $ 2,479    
    Net loan charge-offs as a % of average loans receivable (annualized)   0.17 %     0.16 %     0.15 %     0.43 %     0.12 %  
                         
    Asset Quality                    
    Nonaccrual loans $ 51,300     $ 46,026     $ 47,438     $ 52,524     $ 56,059    
    Other real estate owned                              
    Nonperforming assets $ 51,300     $ 46,026     $ 47,438     $ 52,524     $ 56,059    
                         
    Allowance for credit losses – loans (“ACL”) $ 82,494     $ 82,077     $ 82,869     $ 81,974     $ 88,230    
    Loans receivable   8,111,976       8,157,903       8,297,957       8,345,145       8,181,109    
                         
    Nonaccrual loans as a % of loans receivable   0.63 %     0.56 %     0.57 %     0.63 %     0.69 %  
    Nonperforming assets as a % of total assets   0.53       0.47       0.48       0.53       0.58    
    ACL as a % of loans receivable   1.02       1.01       1.00       0.98       1.08    
    ACL as a % of nonaccrual loans   160.8       178.3       174.7       156.1       157.4    
     _________________________                     
    (7)Tangible common equity divided by tangible assets.
    (8)Tangible common equity divided by common shares outstanding at period-end.
                         
    CONNECTONE BANCORP, INC.                            
    NET INTEREST MARGIN ANALYSIS                            
    (dollars in thousands)                              
                                       
            For the Quarter Ended  
            September 30, 2024 June 30, 2024 September 30, 2023
            Average         Average         Average      
    Interest-earning assets:   Balance Interest Rate(7)   Balance Interest Rate(7)   Balance Interest Rate(7)
    Investment securities(1) (2) $ 736,946   $ 6,157   3.32 %   $ 739,591   $ 6,102   3.32 %   $ 723,408   $ 5,566   3.05 %
    Loans receivable and loans held-for-sale(2) (3) (4)         8,123,416     119,805   5.87       8,212,825     120,663   5.91       8,169,310     115,954   5.63  
    Federal funds sold and interest-                            
    bearing deposits with banks   304,009     4,056   5.31       212,811     2,841   5.37       158,155     2,110   5.29  
    Restricted investment in bank stock   41,667     1,048   10.01       44,823     1,217   10.92       38,558     907   9.33  
    Total interest-earning assets   9,206,038     131,066   5.66       9,210,050     130,823   5.71       9,089,431     124,537   5.44  
    Allowance for credit losses   (83,355 )           (84,681 )           (89,966 )      
    Noninterest-earning assets     620,170             620,484             626,160        
    Total assets     $ 9,742,853           $ 9,745,853           $ 9,625,625        
                                       
    Interest-bearing liabilities:                            
    Time deposits     $ 2,625,329     30,245   4.58     $ 2,587,706     28,898   4.49     $ 2,606,122     25,437   3.87  
    Other interest-bearing deposits   3,747,427     33,540   3.56       3,721,167     33,188   3.59       3,723,561     30,606   3.26  
    Total interest-bearing deposits   6,372,756     63,785   3.98       6,308,873     62,086   3.96       6,329,683     56,043   3.51  
                                       
    Borrowings       717,586     4,239   2.35       787,256     5,150   2.63       651,112     3,950   2.41  
    Subordinated debentures, net   79,735     1,312   6.55       79,609     1,311   6.62       79,230     1,312   6.57  
    Finance lease       1,349     20   5.90       1,416     21   5.96       1,603     24   5.94  
    Total interest-bearing liabilities   7,171,426     69,356   3.85       7,177,154     68,568   3.84       7,061,628     61,329   3.45  
                                       
    Noninterest-bearing demand deposits   1,259,912             1,256,251             1,275,325        
    Other liabilities       76,791             91,827             86,025        
    Total noninterest-bearing liabilities   1,336,703             1,348,078             1,361,350        
    Stockholders’ equity     1,234,724             1,220,621             1,202,647        
    Total liabilities and stockholders’ equity $ 9,742,853           $ 9,745,853           $ 9,625,625        
                                       
    Net interest income (tax equivalent basis)     61,710             62,255             63,208      
    Net interest spread(5)       1.82 %       1.87 %       1.99 %
                                       
    Net interest margin(6)       2.67 %       2.72 %       2.76 %
                                       
    Tax equivalent adjustment       (823 )           (816 )           (851 )    
    Net interest income     $ 60,887           $ 61,439           $ 62,357      
    _________________________                                   
    (1)Average balances are calculated on amortized cost.
    (2)Interest income is presented on a tax equivalent basis using 21% federal tax rate.
    (3)Includes loan fee income.
    (4)Loans include nonaccrual loans.
    (5)Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing.
    liabilities and is presented on a tax equivalent basis.
    (6)Represents net interest income on a tax equivalent basis divided by average total interest-earning assets.
    (7)Rates are annualized.
                                       

    The MIL Network

  • MIL-OSI: Nasdaq Reports Third Quarter 2024 Results; Fourth Consecutive Quarter of Double-Digit Solutions Revenue Growth

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the third quarter of 2024.

    • Third quarter 2024 net revenue1 was $1.1 billion, or $1.2 billion on a non-GAAP basis2, an increase of 22% over the third quarter of 2023, up 10% on a pro forma3 basis. This included Solutions4 revenue increasing 26%, or 10% on a pro forma basis.
    • Annualized Recurring Revenue (ARR)5 of $2.7 billion increased 31% over the third quarter of 2023, up 8% on a pro forma basis.
    • Financial Technology revenue of $371 million increased 56% over the third quarter of 2023, up 10% on a pro forma basis.
    • Index revenue of $182 million increased 26%, with $62 billion of net inflows over the trailing twelve months and $14 billion in the third quarter.
    • GAAP diluted earnings per share decreased 11% in the third quarter of 2024. Non-GAAP diluted earnings per share increased 5% in the third quarter of 2024 and increased 20% organically.
    • In the third quarter of 2024, the company returned $138 million to shareholders through dividends and $88 million through repurchases of common stock. The company also repaid net $50 million of commercial paper in the third quarter of 2024.

    Third Quarter 2024 Highlights

    (US$ millions, except per share) 3Q24 Change %
    (YoY)
    Organic change % (YoY) Pro forma change % (YoY)
    GAAP Solutions Revenue $872 26%    
    Non-GAAP Solutions Revenue $906 31% 9% 10%
    Market Services Net Revenue $266 13% 13%  
    GAAP Net Revenue* $1,146 22%    
    Non-GAAP Net Revenue* $1,180 26% 10% 10%
    GAAP Operating Income $448 4%    
    Non-GAAP Operating Income $637 30% 12% 14%
    ARR $2,736 31% 7% 8%
    GAAP Diluted EPS $0.53 (11)%    
    Non-GAAP Diluted EPS $0.74 5% 20%  

    Note: The period over period percentages are calculated based on exact dollars, and therefore may not agree to a recalculation based on rounded numbers shown in the table above. Pro forma results are not calculated in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Refer to the footnotes below for further discussion.

    *Net revenues includes $8 million of Other Revenues, which reflect revenues associated with the European power trading and clearing business.

    Adena Friedman, Chair and CEO said, “Nasdaq delivered its fourth consecutive quarter of double-digit Solutions growth with strong overall quarterly performance.

    As we approach the one-year anniversary of the Adenza acquisition, I am proud of our progress to date and excited about driving even greater value for our clients and shareholders.

    The integration continues seamlessly. Through our One Nasdaq strategy we are deepening our partnerships with clients across the financial system and unlocking opportunities for sustained and scalable growth.”

    Sarah Youngwood, Executive Vice President and CFO said, “Nasdaq’s performance continues to reflect the quality and diversity of our platforms, driving strong growth across the business with particular strength in Index and Financial Technology.

    We are continuing to deliver ahead on deleveraging and synergies and are benefiting from significant operating leverage.

    Looking ahead, we remain well positioned to execute on our next phase of sustainable growth.”

    FINANCIAL REVIEW

    • Third quarter 2024 net revenue was $1.1 billion, reflecting 22% growth versus the prior year period while non-GAAP net revenue was $1.2 billion. Revenue growth included a $146 million benefit related to the acquisition of Adenza. Net revenue grew 10% on a pro forma basis.
    • Solutions revenue was $872 million in the third quarter of 2024, up 26% versus the prior year period, or 10% growth on a pro forma basis, reflecting strong growth from Index and Financial Technology.
    • ARR grew 31% year over year, or 8% on a pro forma basis, in the third quarter of 2024 with 14% pro forma ARR growth for Financial Technology and 2% ARR growth for Capital Access Platforms.
    • Market Services net revenue was $266 million in the third quarter of 2024, up 13% versus the prior year period. The increase was primarily driven by a $15 million increase in U.S. equity derivatives and an $11 million increase in U.S. cash equities.
    • Third quarter 2024 GAAP operating expenses were $698 million, an increase of 37% versus the prior year period. The increase for the third quarter was primarily due to the acquisition of Adenza, which resulted in an additional $87 million in amortization expense of acquired intangible assets, and $61 million of other AxiomSL and Calypso operating expenses, as well as organic growth driven by increased investments in technology and our people to drive innovation and long-term growth.
    • Third quarter 2024 non-GAAP operating expenses were $543 million, reflecting 21% growth versus the prior year period, or 5% growth on a pro forma basis. The increase for the third quarter was primarily due to the inclusion of $61 million of AxiomSL and Calypso operating expenses. The pro forma increase reflects growth driven by increased investments in technology and our people to drive innovation and long-term growth, partially offset by the benefit of synergies.
    • Third quarter 2024 cash flow from operations was $244 million, enabling the company to continue to make meaningful progress on its deleveraging plan. In the third quarter, the company returned $138 million to shareholders through dividends and $88 million through repurchases of our common stock. The company also repaid net $50 million of commercial paper in the third quarter of 2024. As of September 30, 2024, there was $1.7 billion remaining under the board authorized share repurchase program.

    2024 EXPENSE AND TAX GUIDANCE UPDATE6

    • The company is updating its 2024 non-GAAP operating expense guidance to a range of $2,150 million to $2,180 million, and is updating its 2024 non-GAAP tax rate guidance to be in the range of 23.5% to 24.5%.

    STRATEGIC AND BUSINESS UPDATES

    • Financial Technology delivered healthy revenue growth in the third quarter. Division revenue increased 10% on a pro forma basis, reflective of the mission-critical nature of the division’s solutions suite. Financial Technology pro forma ARR growth was 14% in the third quarter, with 39 new customers, 110 upsells, and 2 cross-sells. Third quarter highlights include:
      • Nasdaq leapt to 5th place in Chartis’ annual RiskTech100® global ranking. This ranking is widely regarded as the most comprehensive independent study of the world’s major players in risk and compliance technology. The significant jump in ranking reflects the combined power of Nasdaq and Adenza’s technology offerings with Nasdaq and Adenza previously ranking #18 and #10, respectively. Nasdaq Verafin and AxiomSL won Chartis industry awards recognizing Nasdaq’s leadership in financial crime management and in regulatory reporting. The study also highlighted the value of Nasdaq’s governance and sustainability solutions.
      • Financial Crime Management Technology had ARR growth of 24% with 114% net revenue retention and launched new AI product innovations. Financial Crime Management Technology signed 28 new SMB clients, in addition to the previously announced Tier 1 win in July. Nasdaq Verafin extended its track record of product innovation success with its AI Entity Research Copilot now deployed to more than 2,000 U.S. institutions. In the third quarter Nasdaq Verafin announced new enhancements to its Targeted Typology Analytics, an artificial intelligence (AI) based suite of detection capabilities targeting terrorist financing and drug trafficking activity.
      • AxiomSL and Calypso achieved 15% combined pro forma ARR growth. AxiomSL and Calypso delivered a combined 47 upsells and 4 new clients, with 17% of new bookings in the quarter cloud-based. Combined gross revenue retention7 was 97% and net revenue retention8 was 111%. Excluding the impact of a significant bankruptcy first noted in the fourth quarter of 2023, pro forma ARR growth was 16%, gross revenue retention was 98%, and net revenue retention was 112%.
      • Market Technology delivered 14% ARR growth as it continues to capture opportunities associated with the market modernization megatrend. Market Technology was driven by 13 upsells, 1 new client, and 1 cross-sell in the third quarter. ARR growth also benefited from the conversion of a previously mentioned large client delivery.
    • U.S. equity derivatives achieved record quarterly net revenue. In the third quarter of 2024, Nasdaq achieved a record quarter of U.S. equity derivatives net revenue of $107 million, with multi-listed U.S. options market share once again surpassing 30% in the quarter and 19% growth in U.S. index options volume.
    • Index delivered another quarter of outstanding performance and advanced its growth strategy across product innovation, globalization, and institutional client expansion. The Index business had $62 billion in net inflows over the trailing 12 months, with $14 billion in the third quarter. The business achieved another record in Index ETP AUM, averaging $575 billion in the third quarter and reaching $600 billion at quarter-end. Index derivatives trading volumes grew 24% year-over-year, also contributing to revenue growth. Nasdaq launched 35 new products with our partners in the quarter, 20 of which were international. The launches included 8 options overlays and 7 institutional insurance annuity products. Additionally, Nasdaq recently received 2024 Best Index Provider from Structured Retail Products, a global market intelligence provider, highlighting the business’ innovation and success as a strategic partner to our clients.
    • Nasdaq strengthened its listings leadership in the U.S. in the third quarter. Nasdaq listed 33 U.S. operating company IPOs that raised more than $6 billion in proceeds, reflecting an 85% win rate among eligible operating companies in the quarter. These listings contributed to a 75% win rate year-to-date through the third quarter for eligible operating companies comprising of 5 of the top 10 IPOs, including Lineage, the largest offering so far this year. Nasdaq also celebrated its 500th switch to our U.S. exchange in the quarter.
    • Nasdaq celebrated 25 Years of MarketSite in Times Square. MarketSite has stood as a physical embodiment of the Nasdaq brand since its debut and reflects Nasdaq’s culture of driving innovation and delivering valuable client solutions. MarketSite is a hub for Nasdaq’s clients and partners and an integral part of the global finance landscape.
    • Nasdaq continued its progress on its 2024 strategic priorities – Integrate, Innovate, Accelerate – positioning the company to capitalize on opportunities for sustainable, scalable, and resilient growth.
      • Integrate – Since the acquisition of Adenza nearly a year-ago, Nasdaq has actioned more than 80% of its net expense synergy target and continues to delever ahead of plan.
      • Innovate – Nasdaq reached new milestones in deploying AI tools and products including the launch of an internal Generative AI platform with custom-built efficiency tools and completed the rollout of AI copilot tools to all of its developers. Calypso also announced an AI-based solution for X-Value Adjustments (XVA) with up to 100 times faster processing speeds that improves the efficiency of risk calculations for banks, insurers, and other financial institutions. Beyond Nasdaq’s AI innovations, Market Services migrated Nasdaq International Securities Exchange to its next-generation derivatives platform, Fusion. Four of Nasdaq’s U.S. markets and one European equity derivatives market are operating on this platform which provides enhanced performance, including lower latency, higher throughput, and increased productivity.
      • Accelerate – We continue to make progress on our One Nasdaq strategy driving two cross-sells across the Financial Technology division in the quarter. The percentage of cross-sell opportunities in the division’s pipeline is over 10% and Nasdaq remains on track to exceed $100 million in cross-sells by the end of 2027.

    ____________
    1 Represents revenue less transaction-based expenses.
    2 Refer to our reconciliations of U.S. GAAP to non-GAAP Solutions revenue, net revenue, net income attributable to Nasdaq, diluted earnings per share, operating income, operating expenses and organic impacts included in the attached schedules.
    3 Pro forma results are presented assuming AxiomSL and Calypso were included in the prior year quarterly results and revenue for AxiomSL on-premises contracts were recognized ratably for all of 2023 and 2024. Pro forma growth excludes the impacts of foreign currency except for AxiomSL and Calypso, which are not yet calculated on an organic basis. These pro forma results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this release.
    4 Constitutes revenue from our Capital Access Platforms and Financial Technology segments.
    5 Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
    6 U.S. GAAP operating expense and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.
    7 Gross Retention: ARR in the current period over ARR in the prior year period for existing customers excluding price increases and upsells and excluding new customers.
    8 Net Retention: ARR in the current period over ARR in the prior year period for existing customers including price increases and upsells and excluding new customers.

    ABOUT NASDAQ

    Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    NON-GAAP INFORMATION

    In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, non-GAAP Solutions revenue, non-GAAP net revenue, non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating income, and non-GAAP operating expenses, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. Management uses this non-GAAP information internally, along with U.S. GAAP information, in evaluating our performance and in making financial and operational decisions. We believe our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance.

    These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone.

    We understand that analysts and investors regularly rely on non-GAAP financial measures, such as those noted above, to assess operating performance. We use these measures because they highlight trends more clearly in our business that may not otherwise be apparent when relying solely on U.S. GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our ongoing operating performance.

    Organic revenue and expense growth, organic change and organic impact are non-GAAP measures that reflect adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture. Reconciliations of these measures are described within the body of this release or in the reconciliation tables at the end of this release.

    Foreign exchange impact: In countries with currencies other than the U.S. dollar, revenue and expenses are translated using monthly average exchange rates. Certain discussions in this release isolate the impact of year-over-year foreign currency fluctuations to better measure the comparability of operating results between periods. Operating results excluding the impact of foreign currency fluctuations are calculated by translating the current period’s results by the prior period’s exchange rates.

    Restructuring programs: In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In connection with the program, we expect to incur pre-tax charges principally related to employee-related costs, consulting, asset impairments and contract terminations over a two-year period. We expect to achieve benefits in the form of both increased customer engagement and operating efficiencies. Costs related to the Adenza restructuring and the divisional alignment programs are recorded as “restructuring charges” in our consolidated statements of income. We exclude charges associated with these programs for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, dividend program, trading volumes, products and services, ability to transition to new business models or implement our new corporate structure, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, environmental, deleveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, geopolitical instability, government and industry regulation, interest rate risk, U.S. and global competition. Further information on these and other factors are detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

    WEBSITE DISCLOSURE

    Nasdaq intends to use its website, ir.nasdaq.com, as a means for disclosing material non-public information and for complying with SEC Regulation FD and other disclosure obligations.

    Media Relations Contact   Investor Relations Contact  
    Nick Jannuzzi   Ato Garrett
    973.760.1741   212.401.8737
    nicholas.jannuzzi.@nasdaq.com   ato.garrett@nasdaq.com

    NDAQF

     
    Nasdaq, Inc.
    Condensed Consolidated Statements of Income
    (in millions, except per share amounts)
    (unaudited)
               
      Three Months Ended   Nine Months Ended
      September 30,   September 30,   September 30,   September 30,
        2024       2023       2024       2023  
                     
    Revenues:              
    Capital Access Platforms $ 501     $ 456     $ 1,460     $ 1,309  
    Financial Technology   371       238       1,183       700  
    Market Services   1,022       747       2,700       2,378  
    Other Revenues   8       10       27       30  
      Total revenues   1,902       1,451       5,370       4,417  
    Transaction-based expenses:              
    Transaction rebates   (513 )     (447 )     (1,478 )     (1,377 )
    Brokerage, clearance and exchange fees   (243 )     (64 )     (470 )     (262 )
    Revenues less transaction-based expenses   1,146       940       3,422       2,778  
                   
    Operating Expenses:              
    Compensation and benefits   332       260       1,000       777  
    Professional and contract services   36       31       108       92  
    Technology and communication infrastructure   71       58       207       168  
    Occupancy   28       28       85       99  
    General, administrative and other   26       26       84       62  
    Marketing and advertising   11       12       34       30  
    Depreciation and amortization   153       64       460       198  
    Regulatory   9       9       37       27  
    Merger and strategic initiatives   10       4       23       51  
    Restructuring charges   22       17       103       49  
      Total operating expenses   698       509       2,141       1,553  
    Operating income   448       431       1,281       1,225  
    Interest income   8       72       20       86  
    Interest expense   (102 )     (101 )     (313 )     (174 )
    Other income (loss)   1       1       15       (6 )
    Net income (loss) from unconsolidated investees   1       (12 )     7       (8 )
    Income before income taxes   356       391       1,010       1,123  
    Income tax provision   51       97       250       262  
    Net income   305       294       760       861  
    Net loss attributable to noncontrolling interests   1             2       1  
    Net income attributable to Nasdaq $ 306     $ 294     $ 762     $ 862  
                   
    Per share information:              
    Basic earnings per share $ 0.53     $ 0.60     $ 1.32     $ 1.76  
    Diluted earnings per share $ 0.53     $ 0.60     $ 1.32     $ 1.74  
    Cash dividends declared per common share $ 0.24     $ 0.22     $ 0.70     $ 0.64  
                   
    Weighted-average common shares outstanding              
    for earnings per share:              
    Basic   575.1       491.3       575.6       490.7  
    Diluted   579.0       494.1       579.0       494.2  
                     
    Nasdaq, Inc.
    Revenue Detail
    (in millions)
    (unaudited)
                     
            Three Months Ended   Nine Months Ended
            September 30,   September 30,   September 30,   September 30,
              2024       2023       2024       2023  
                         
    CAPITAL ACCESS PLATFORMS              
      Data and Listing Services revenues $ 190     $ 188     $ 562     $ 559  
      Index revenues   182       144       517       383  
      Workflow and Insights revenues   129       124       381       367  
        Total Capital Access Platforms revenues   501       456       1,460       1,309  
                         
    FINANCIAL TECHNOLOGY              
      Financial Crime Management Technology revenues   69       58       200       163  
      Regulatory Technology revenues   68       35       253       102  
      Capital Markets Technology revenues   234       145       730       435  
        Total Financial Technology revenues   371       238       1,183       700  
                         
    MARKET SERVICES              
      Market Services revenues   1,022       747       2,700       2,378  
      Transaction-based expenses:              
          Transaction rebates   (513 )     (447 )     (1,478 )     (1,377 )
          Brokerage, clearance and exchange fees   (243 )     (64 )     (470 )     (262 )
        Total Market Services revenues, net   266       236       752       739  
                         
    OTHER REVENUES   8       10       27       30  
                         
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 1,146     $ 940     $ 3,422     $ 2,778  
                         
                         
    Nasdaq, Inc.
    Condensed Consolidated Balance Sheets
    (in millions)
               
          September 30,   December 31,
            2024       2023  
    Assets   (unaudited)    
    Current assets:        
      Cash and cash equivalents   $ 266     $ 453  
      Restricted cash and cash equivalents     42       20  
      Default funds and margin deposits     5,865       7,275  
      Financial investments     202       188  
      Receivables, net     944       929  
      Other current assets     239       231  
    Total current assets     7,558       9,096  
    Property and equipment, net     584       576  
    Goodwill     14,165       14,112  
    Intangible assets, net     7,072       7,443  
    Operating lease assets     388       402  
    Other non-current assets     793       665  
    Total assets   $ 30,560     $ 32,294  
               
    Liabilities        
    Current liabilities:        
      Accounts payable and accrued expenses   $ 289     $ 332  
      Section 31 fees payable to SEC     74       84  
      Accrued personnel costs     314       303  
      Deferred revenue     663       594  
      Other current liabilities     229       146  
      Default funds and margin deposits     5,865       7,275  
      Short-term debt     499       291  
    Total current liabilities     7,933       9,025  
    Long-term debt     9,359       10,163  
    Deferred tax liabilities, net     1,566       1,642  
    Operating lease liabilities     399       417  
    Other non-current liabilities     222       220  
    Total liabilities     19,479       21,467  
             
    Commitments and contingencies        
    Equity        
    Nasdaq stockholders’ equity:        
      Common stock     6       6  
      Additional paid-in capital     5,477       5,496  
      Common stock in treasury, at cost     (643 )     (587 )
      Accumulated other comprehensive loss     (1,952 )     (1,924 )
      Retained earnings     8,184       7,825  
    Total Nasdaq stockholders’ equity     11,072       10,816  
      Noncontrolling interests     9       11  
    Total equity     11,081       10,827  
    Total liabilities and equity   $ 30,560     $ 32,294  
               
               
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Net Income Attributable to Nasdaq and Diluted Earnings Per Share
    (in millions, except per share amounts)
    (unaudited)
                       
                   
           Three Months Ended   Nine Months Ended
          September 30,   September 30,   September 30,   September 30,
            2024       2023       2024       2023  
                       
    U.S. GAAP net income attributable to Nasdaq   $ 306     $ 294     $ 762     $ 862  
    Non-GAAP adjustments:                
      Adenza purchase accounting adjustment (1)     34             34        
      Amortization expense of acquired intangible assets (2)     122       37       366       112  
      Merger and strategic initiatives expense (3)     10       4       23       51  
      Restructuring charges (4)     22       17       103       49  
      Lease asset impairments (5)                       24  
      Net (income) loss from unconsolidated investees (6)     (1 )     12       (7 )     8  
      Legal and regulatory matters (7)                 16       (10 )
      Pension settlement charge (8)                 23        
      Other (income) loss (9)     1       9       (8 )     17  
      Total non-GAAP adjustments     188       79       550       251  
      Non-GAAP adjustment to the income tax provision (10)     (65 )     (24 )     (151 )     (76 )
      Tax on intra-group transfer of intellectual property assets (11)                 33        
      Total non-GAAP adjustments, net of tax     123       55       432       175  
    Non-GAAP net income attributable to Nasdaq   $ 429     $ 349     $ 1,194     $ 1,037  
                       
    U.S. GAAP diluted earnings per share   $ 0.53     $ 0.60     $ 1.32     $ 1.74  
      Total adjustments from non-GAAP net income above     0.21       0.11       0.74       0.36  
    Non-GAAP diluted earnings per share   $ 0.74     $ 0.71     $ 2.06     $ 2.10  
                       
    Weighted-average diluted common shares outstanding for earnings per share:     579.0       494.1       579.0       494.2  
                       
                       
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
           
    (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
           
    (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (6) We exclude our share of the earnings and losses of our equity method investments. This provides a more meaningful analysis of Nasdaq’s ongoing operating performance or comparisons in Nasdaq’s performance between periods.
                       
    (7) For the nine months ended September 30, 2024, these items primarily included the settlement of a Swedish Financial Supervisory Authority, or SFSA, fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.
                       
    (8) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    (9) For the nine months ended September 30, 2024, and for the three and nine months ended September 30, 2023, other items primarily include net gains from strategic investments entered into through our corporate venture program, which are included in other income (loss) in our Condensed Consolidated Statements of Income.
                       
    (10) The non-GAAP adjustment to the income tax provision primarily includes the tax impact of each non-GAAP adjustment.
                       
    (11) For the nine months ended September 30, 2024, the completion of an intra-group transfer of intellectual property assets to U.S. headquarters resulted in a net tax expense of $33 million.
                       
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Revenues Less Transaction-Based Expenses
    (in millions)
    (unaudited)
                   
      Three Months Ended   Nine Months Ended
      September 30, 2024   September 30, 2024
      U.S. GAAP Revenues Less Transaction-Based Expenses Adenza purchase accounting adjustment (1) Non-GAAP Revenues Less Transaction-Based Expenses   U.S. GAAP Revenues Less Transaction-Based Expenses Adenza purchase accounting adjustment (1) Non-GAAP Revenues Less Transaction-Based Expenses
    CAPITAL ACCESS PLATFORMS $ 501 $ $ 501   $ 1,460 $ 1,460
                   
    FINANCIAL TECHNOLOGY              
    Financial Crime Management Technology revenues   69     69     200   200
    Regulatory Technology revenues (1)   68   34   102     253   34 287
    Capital Markets Technology revenues   234     234     730   730
    Total Financial Technology revenues   371   34   405     1,183   34 1,217
    SOLUTIONS REVENUES   872   34   906     2,643   34 2,677
                   
    MARKET SERVICES REVENUES, NET   266     266     752   752
    OTHER REVENUES   8     8     27   27
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 1,146 $ 34 $ 1,180   $ 3,422 $ 34 3,456
                   
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
                   
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Operating Income and Operating Margin
    (in millions)
    (unaudited)
                   
           Three Months Ended   Nine Months Ended
          September 30,   September 30,   September 30,   September 30,
            2024       2023       2024       2023  
                       
    U.S. GAAP operating income   $ 448     $ 431     $ 1,281     $ 1,225  
    Non-GAAP adjustments:                
      Adenza purchase accounting adjustment (1)     34             34        
      Amortization expense of acquired intangible assets (2)     122       37       366       112  
      Merger and strategic initiatives expense (3)     10       4       23       51  
      Restructuring charges (4)     22       17       103       49  
      Lease asset impairments (5)                       24  
      Legal and regulatory matters (6)                 16       (10 )
      Pension settlement charge (7)                 23        
      Other loss     1       2       4       2  
      Total non-GAAP adjustments     189       60       569       228  
    Non-GAAP operating income   $ 637     $ 491     $ 1,850     $ 1,453  
                     
    Revenues less transaction-based expenses   $ 1,146     $ 940     $ 3,422     $ 2,778  
                       
    U.S. GAAP operating margin (8)     39 %     46 %     37 %     44 %
                       
    Non-GAAP operating margin (9)     54 %     52 %     54 %     52 %
                       
                       
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
           
    (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
                       
    (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (6) For the nine months ended September 30, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.
                       
    (7) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    (8) U.S. GAAP operating margin equals U.S. GAAP operating income divided by revenues less transaction-based expenses.
                       
    (9) Non-GAAP operating margin equals non-GAAP operating income divided by non-GAAP revenues less transaction-based expenses.
                       
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Operating Expenses
    (in millions)
    (unaudited)
                   
           Three Months Ended   Nine Months Ended
          September 30,   September 30,   September 30,   September 30,
            2024       2023       2024       2023  
                       
    U.S. GAAP operating expenses   $ 698     $ 509     $ 2,141     $ 1,553  
    Non-GAAP adjustments:                
      Amortization expense of acquired intangible assets (1)     (122 )     (37 )     (366 )     (112 )
      Merger and strategic initiatives expense (2)     (10 )     (4 )     (23 )     (51 )
      Restructuring charges (3)     (22 )     (17 )     (103 )     (49 )
      Lease asset impairments (4)                       (24 )
      Legal and regulatory matters (5)                 (16 )     10  
      Pension settlement charge (6)                 (23 )      
      Other (loss)     (1 )     (2 )     (4 )     (2 )
      Total non-GAAP adjustments     (155 )     (60 )     (535 )     (228 )
    Non-GAAP operating expenses   $ 543     $ 449     $ 1,606     $ 1,325  
                       
                       
    (1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
           
    (2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (4) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (5) For the nine months ended September 30, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.
                       
    (6) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    Nasdaq, Inc.
    Reconciliation of Pro Forma Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
    Non-GAAP Operating Income, and Non-GAAP Operating Margin
    (in millions)
    (unaudited)
     
      Three Months Ended   Three Months Ended                  
      September 30, 2024   September 30, 2023   Total Variance   FX (3)   Pro Forma Impacts
      Non-GAAP Adenza Adjustment (1)   Pro Forma   Non-GAAP   Adenza (2)   Pro Forma   $   %   $   $ %
    Capital Access Platforms revenues $ 501   $     $ 501     $ 456     $   $ 456     $ 45     10 %   $ 1   $ 44   9 %
                                           
    Financial Crime Management Technology revenues   69           69       58           58       11     20 %         11   20 %
    Regulatory Technology revenues   102     (2 )     100       35       56     91       9     10 %     1     8   8 %
    Capital Markets Technology revenues   234           234       145       71     216       18     8 %         18   8 %
    Financial Technology revenues   405     (2 )     403       238       127     365       38     10 %     1     37   10 %
    Solutions revenues (4)   906     (2 )     904       694       127     821       83     10 %     2     81   10 %
                                           
    Market Services, net revenues   266           266       236           236       30     13 %         30   13 %
    Other revenues   8           8       10           10       (2 )   (13 )%         (2 ) (14 )%
    Revenues less transaction-based expenses   1,180     (2 )     1,178       940       127     1,067       111     10 %     2     109   10 %
                                           
    Non-GAAP operating expenses   543           543       449       65     514       29     6 %     1     28   5 %
    Non-GAAP operating income $ 637   $ (2 )   $ 635     $ 491     $ 62   $ 553     $ 82     15 %   $ 1   $ 81   14 %
    Non-GAAP operating margin   54 %       54 %     52 %         52 %                  
                                           
    Note: Pro forma results are presented assuming AxiomSL and Calypso were included in the prior year quarterly results and revenue for AxiomSL on-premises contracts were recognized ratably for all of 2023 and 2024. Pro forma growth excludes the impacts of foreign currency except for AxiomSL and Calypso, which are not yet calculated on an organic basis. These pro forma results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this release. The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions.
                                           
    (1) Adjustment to remove the cumulative impact of changing to ratable revenue recognition for AxiomSL on-premises subscription contracts, which related to the first six months of 2024.
     
    (2) The Adenza results above are presented on a non-GAAP basis and have been adjusted for certain items. We believe presenting these measures excluding these items provides investors with greater transparency as they do not represent ongoing operations. These adjustments include intangible amortization of $39 million and other transaction and restructuring related costs of $3 million for the third quarter of 2023.
     
    (3) Reflects the impacts from changes in FX rates.
     
    (4) Represents Capital Access Platforms and Financial Technology Segments.
                                           
    Nasdaq, Inc.
    Reconciliation of Organic Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
    Non-GAAP Operating Income, and Non-GAAP Diluted Earnings Per Share
    (in millions)
    (unaudited)
                                   
      Three Months Ended                        
      September 30,   September 30,   Total Variance   Organic Impact   Other Impacts (1)
      2024   2023   $   %   $   %   $   %
    CAPITAL ACCESS PLATFORMS                              
    Data and Listing Services revenues $ 190   $ 188   $ 2     1 %   $ 1     1 %   $ 1     %
    Index revenues   182     144     38     26 %     38     26 %         %
    Workflow and Insights revenues   129     124     5     4 %     5     3 %         %
    Total Capital Access Platforms revenues   501     456     45     10 %     44     9 %     1     %
                                   
    FINANCIAL TECHNOLOGY                              
    Financial Crime Management Technology revenues   69     58     11     20 %     11     20 %         %
    Regulatory Technology revenues   102     35     67     190 %     2     6 %     65     185 %
    Capital Markets Technology revenues   234     145     89     62 %     7     5 %     82     57 %
    Total Financial Technology revenues   405     238     167     71 %     20     9 %     147     62 %
                                   
    SOLUTIONS REVENUES (2)   906     694     212     31 %     64     9 %     148     21 %
                                   
    MARKET SERVICES REVENUES, NET   266     236     30     13 %     30     13 %         %
                                   
    OTHER REVENUES   8     10     (2 )   (13 )%     (2 )   (14 )%         1 %
                                   
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 1,180   $ 940   $ 240     26 %   $ 92     10 %   $ 148     16 %
                                   
    Non-GAAP Operating Expenses $ 543   $ 449   $ 94     21 %   $ 32     7 %   $ 62     14 %
                                   
    Non-GAAP Operating Income $ 637   $ 491   $ 146     30 %   $ 60     12 %   $ 86     18 %
                                   
    Non-GAAP diluted earnings per share $ 0.74   $ 0.71   $ 0.03     5 %   $ 0.14     20 %   $ (0.11 )   (16 )%
                                   
    Note: The period over period percentages are calculated based on exact dollars, and therefore may not agree to a recalculation based on rounded numbers shown in the tables above. The sum of the percentage changes may not tie to the percentage change in total variance due to rounding.
                                   
    (1) Primarily includes the impacts of the Adenza acquisition and changes in FX rates.
     
    (2) Represents Capital Access Platforms and Financial Technology Segments.
                                   
    Nasdaq, Inc.
    Quarterly Key Drivers Detail
    (unaudited)
                     
        Three Months Ended   Nine Months Ended
        September 30,   September 30,   September 30,   September 30,
          2024       2023       2024       2023  
    Capital Access Platforms              
      Annualized recurring revenues (in millions) (1) $ 1,254     $ 1,222     $ 1,254     $ 1,222  
      Initial public offerings              
      The Nasdaq Stock Market (2)   48       39       114       102  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic   1             7       3  
      Total new listings              
      The Nasdaq Stock Market (2)   138       87       301       230  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (3)   6       3       18       16  
      Number of listed companies              
      The Nasdaq Stock Market (4)   4,039       4,086       4,039       4,086  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (5)   1,186       1,236       1,186       1,236  
      Index              
      Number of licensed exchange traded products (6)   388       366       388       366  
      Period end ETP assets under management (AUM) tracking Nasdaq indexes (in billions) $ 600     $ 411     $ 600     $ 411  
      Quarterly average ETP AUM tracking Nasdaq indexes (in billions) $ 575     $ 423          
      TTM (7) net inflows ETP AUM tracking Nasdaq indexes (in billions) $ 62     $ 24     $ 62     $ 24  
      TTM (7) net appreciation ETP AUM tracking Nasdaq indexes (in billions) $ 143     $ 78     $ 143     $ 78  
                     
    Financial Technology              
      Annualized recurring revenues (in millions) (1)              
      Financial Crime Management Technology $ 268     $ 216     $ 268     $ 216  
      Regulatory Technology   350       132       350       132  
      Capital Markets Technology   864       511       864       511  
      Total Financial Technology $ 1,482     $ 859     $ 1,482     $ 859  
                     
    Market Services              
      Equity Derivative Trading and Clearing              
      U.S. equity options              
      Total industry average daily volume (in millions)   44.5       39.6       43.3       40.4  
      Nasdaq PHLX matched market share   9.4 %     11.0 %     9.9 %     11.2 %
      The Nasdaq Options Market matched market share   5.8 %     5.6 %     5.5 %     6.4 %
      Nasdaq BX Options matched market share   2.3 %     4.4 %     2.3 %     3.6 %
      Nasdaq ISE Options matched market share   6.8 %     5.7 %     6.7 %     5.8 %
      Nasdaq GEMX Options matched market share   2.7 %     3.0 %     2.6 %     2.3 %
      Nasdaq MRX Options matched market share   3.2 %     2.0 %     2.6 %     1.7 %
      Total matched market share executed on Nasdaq’s exchanges   30.2 %     31.7 %     29.6 %     31.0 %
      Nasdaq Nordic and Nasdaq Baltic options and futures              
      Total average daily volume of options and futures contracts (8)   213,911       245,986       235,137       298,785  
                     
      Cash Equity Trading              
      Total U.S.-listed securities              
      Total industry average daily share volume (in billions)   11.5       10.4       11.7       11.0  
      Matched share volume (in billions)   117.4       106.7       354.3       342.2  
      The Nasdaq Stock Market matched market share   15.6 %     15.5 %     15.6 %     15.9 %
      Nasdaq BX matched market share   0.3 %     0.4 %     0.4 %     0.4 %
      Nasdaq PSX matched market share   0.2 %     0.3 %     0.2 %     0.4 %
      Total matched market share executed on Nasdaq’s exchanges   16.1 %     16.2 %     16.2 %     16.7 %
      Market share reported to the FINRA/Nasdaq Trade Reporting Facility   44.7 %     40.2 %     43.0 %     35.2 %
      Total market share (9)   60.8 %     56.4 %     59.2 %     51.9 %
      Nasdaq Nordic and Nasdaq Baltic securities              
      Average daily number of equity trades executed on Nasdaq’s exchanges   609,167       556,257       645,622       676,132  
      Total average daily value of shares traded (in billions) $ 4.1     $ 3.6     $ 4.5     $ 4.5  
      Total market share executed on Nasdaq’s exchanges   71.6 %     71.6 %     72.2 %     70.6 %
                     
      Fixed Income and Commodities Trading and Clearing              
      Fixed Income              
      Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts   89,037       88,383       94,493       96,461  
                     
      (1) Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature, or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
       
      (2) New listings include IPOs, issuers that switched from other listing venues, closed-end funds and separately listed ETPs. For the three months ended September 30, 2024 and 2023, IPOs included 15 and 4 SPACs, respectively. For the nine months ended September 30, 2024 and 2023, IPOs included 28 and 19 SPACs, respectively.
       
      (3) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
       
      (4) Number of total listings on The Nasdaq Stock Market for the nine months ended September 30, 2024 and September 30, 2023 included 712 and 570 ETPs, respectively.
       
      (5) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
       
      (6) The number of listed ETPs as of September 30, 2023 has been updated to reflect a revised methodology whereby an ETP listed on multiple exchanges is counted as one product, rather than formerly being counted per exchange. This change has no impact on reported AUM.
       
      (7) Trailing 12-months.
       
      (8) Includes Finnish option contracts traded on Eurex for which Nasdaq and Eurex had a revenue sharing arrangement, which ended in the fourth quarter of 2023.
       
      (9) Includes transactions executed on The Nasdaq Stock Market’s, Nasdaq BX’s and Nasdaq PSX’s systems plus trades reported through the Financial Industry Regulatory Authority/Nasdaq Trade Reporting Facility.
                     

    The MIL Network

  • MIL-OSI: Virtu Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the third quarter ended September 30, 2024.

    Third Quarter 2024:

    • Net income of $119.0 million; Normalized Adjusted Net Income1 of $132.1 million
    • Basic and diluted earnings per share of $0.65 and $0.64, respectively; Normalized Adjusted EPS1 of $0.82
    • Total revenues of $706.8 million; Trading income, net, of $444.0 million; Net income Margin of 16.8%2
      • Adjusted Net Trading Income1 of $388.0 million
    • Adjusted EBITDA1 of $214.8 million; Adjusted EBITDA Margin1 of 55.4%
    • Share buybacks of $48.4 million, or 1.7 million shares, under the Share Repurchase Program3

    The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on December 15, 2024 to shareholders of record as of December 1, 2024.

    Note 1: Non-GAAP financial measures. Please see “Non-GAAP Financial Measures and Other Items” for more information.
    Note 2: Calculated by dividing Net income by Total revenue
    Note 3: Shares repurchased calculated on a settlement date basis.

    Financial Results

    Third Quarter 2024:

    Total revenues increased 12.2% to $706.8 million for this quarter, compared to $630.2 million for the same period in 2023. Trading income, net, increased 40.5% to $444.0 million for the quarter compared to $316.1 million for the same period in 2023. Net income totaled $119.0 million for this quarter, compared to net income of $117.6 million in the prior year quarter.

    Basic and diluted earnings per share for this quarter were $0.65 and $0.64, respectively, compared to basic and diluted earnings per share of $0.63 and $0.63, respectively, for the same period in 2023.

    Adjusted Net Trading Income increased 30.2% to $388.0 million for this quarter, compared to $298.0 million for the same period in 2023. Adjusted EBITDA increased 54.0% to $214.8 million for this quarter, compared to $139.5 million for the same period in 2023. Normalized Adjusted Net Income, removing one-time and non-cash items, increased 76.8% to $132.1 million for this quarter, compared to $74.7 million for the same period in 2023.

    Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.82 for this quarter, compared to $0.45 for the same period in 2023.

    Operating Segment Information

    The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

    Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

    Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company’s capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

    Corporate contains the Company’s investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

    The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and nine months ended September 30, 2024 and 2023.

    Total revenues by segment
    (in thousands, unaudited)

        Three Months Ended September 30, 2024   Three Months Ended September 30, 2023
        Market
    Making
      Execution
    Services
      Corporate   Total   Market
    Making
      Execution
    Services
      Corporate   Total
    Trading income, net   $ 440,442   $ 3,555   $   $ 443,997   $ 310,523   $ 5,562   $   $ 316,085
    Commissions, net and technology services     12,721     118,900         131,621     6,343     103,933         110,276
    Interest and dividends income     122,065     3,164         125,229     124,803     2,890         127,693
    Other, net     1,432     108     4,453     5,993     75,682     68     360     76,110
    Total Revenues   $ 576,660   $ 125,727   $ 4,453   $ 706,840   $ 517,351   $ 112,453   $ 360   $ 630,164
                                                     
                                     
        Nine Months Ended September 30, 2024   Nine Months Ended September 30, 2023
        Market
    Making
      Execution
    Services
      Corporate   Total   Market
    Making
      Execution
    Services
      Corporate   Total
    Trading income, net   $ 1,264,214   $ 14,273   $   $ 1,278,487   $ 1,021,179   $ 13,585   $     $ 1,034,764
    Commissions, net and technology services     29,203     347,130         376,333     22,677     318,546           341,223
    Interest and dividends income     330,178     8,109         338,287     300,086     7,830           307,916
    Other, net     43,855     1,063     4,639     49,557     77,580     84     (4,171 )     73,493
    Total Revenues   $ 1,667,450   $ 370,575   $ 4,639   $ 2,042,664   $ 1,421,522   $ 340,045   $ (4,171 )   $ 1,757,396
                                                       

    Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
    (in thousands, unaudited)

        Three Months Ended September 30, 2024   Three Months Ended September 30, 2023
        Market
    Making
      Execution Services   Corporate   Total   Market
    Making
      Execution Services   Corporate   Total
    Trading income, net   $ 440,442     $ 3,555     $   $ 443,997     $ 310,523     $ 5,562     $   $ 316,085  
    Commissions, net and technology services     12,721       118,900           131,621       6,343       103,933           110,276  
    Interest and dividends income     122,065       3,164           125,229       124,803       2,890           127,693  
    Brokerage, exchange, clearance fees and payments for order flow, net     (152,316 )     (24,429 )         (176,745 )     (101,077 )     (22,168 )         (123,245 )
    Interest and dividends expense     (134,912 )     (1,158 )         (136,070 )     (132,523 )     (279 )         (132,802 )
    Adjusted Net Trading Income   $ 288,000     $ 100,032     $   $ 388,032     $ 208,069     $ 89,938     $   $ 298,007  
                                                                 
        Nine Months Ended September 30, 2024   Nine Months Ended September 30, 2023
        Market
    Making
      Execution Services   Corporate   Total   Market
    Making
      Execution Services   Corporate   Total
    Trading income, net   $ 1,264,214     $ 14,273     $   $ 1,278,487     $ 1,021,179     $ 13,585     $   $ 1,034,764  
    Commissions, net and technology services     29,203       347,130           376,333       22,677       318,546           341,223  
    Interest and dividends income     330,178       8,109           338,287       300,086       7,830           307,916  
    Brokerage, exchange, clearance fees and payments for order flow, net     (394,154 )     (73,177 )         (467,331 )     (323,868 )     (67,370 )         (391,238 )
    Interest and dividends expense     (382,200 )     (3,591 )         (385,791 )     (340,954 )     (1,942 )         (342,896 )
    Adjusted Net Trading Income   $ 847,241     $ 292,744     $   $ 1,139,985     $ 679,120     $ 270,649     $   $ 949,769  
                                                                 

    Financial Condition

    As of September 30, 2024, Virtu had $738.2 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,769.4 million.

    Share Repurchase Program

    Since inception of the program in November 2020 through settlement date October 22, 2024, the Company repurchased approximately 49.2 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,240.7 million. The Company has approximately $479.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

    Earnings Conference Call Information

    Virtu Financial will host a conference call to review its third quarter 2024 financial performance today, October 24th, at 8:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

    Website Information

    We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

    Non-GAAP Financial Measures and Other Items

    To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), we use the following non-GAAP measures of financial performance:

    • “Adjusted Net Trading Income”, which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.
    • “EBITDA”, which measures our operating performance by adjusting Net Income to exclude Financing interest expense on long-term borrowings, Debt issue cost related to debt refinancing, prepayment, and commitment fees, Depreciation and amortization, Amortization of purchased intangibles and acquired capitalized software, and Income tax expense, and “Adjusted EBITDA”, which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share-based compensation and other expenses, which includes reserves for legal matters, and Other, net, which includes gains and losses from strategic investments and the sales of businesses.
    • “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items, and other non-cash items, assuming that all vested and unvested Virtu Financial Units have been exchanged for Class A Common Stock, and applying an effective tax rate, which was approximately 24%.
    • “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

    • they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
    • our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
    • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
    • they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
    • they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
    • they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

    Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Comprehensive Income (Unaudited)
             
        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except share and per share data)     2024       2023       2024       2023  
                     
    Revenues:                
    Trading income, net   $ 443,997     $ 316,085     $ 1,278,487     $ 1,034,764  
    Interest and dividends income     125,229       127,693       338,287       307,916  
    Commissions, net and technology services     131,621       110,276       376,333       341,223  
    Other, net     5,993       76,110       49,557       73,493  
    Total revenues     706,840       630,164       2,042,664       1,757,396  
                     
    Operating Expenses:                
    Brokerage, exchange, clearance fees and payments for order flow, net     176,745       123,245       467,331       391,238  
    Communication and data processing     59,601       57,066       177,110       170,837  
    Employee compensation and payroll taxes     107,646       97,221       314,185       296,214  
    Interest and dividends expense     136,070       132,802       385,791       342,896  
    Operations and administrative     24,939       22,416       69,346       72,204  
    Depreciation and amortization     16,486       15,815       48,640       47,076  
    Amortization of purchased intangibles and acquired capitalized software     11,848       15,967       38,688       48,007  
    Termination of office leases     17       364       50       314  
    Debt issue cost related to debt refinancing, prepayment and commitment fees     1,767       1,796       27,740       5,744  
    Transaction advisory fees and expenses     69       6       264       30  
    Financing interest expense on long-term borrowings     24,492       25,361       71,154       74,499  
    Total operating expenses     559,680       492,059       1,600,299       1,449,059  
                     
    Income before income taxes and noncontrolling interest     147,160       138,105       442,365       308,337  
    Provision for income taxes     28,137       20,512       83,917       51,117  
    Net income   $ 119,023     $ 117,593     $ 358,448     $ 257,220  
                     
    Noncontrolling interest     (59,071 )     (55,678 )     (176,093 )     (120,722 )
                     
    Net income available for common stockholders   $ 59,952     $ 61,915     $ 182,355     $ 136,498  
                     
    Earnings per share:                
    Basic   $ 0.65     $ 0.63     $ 1.95     $ 1.36  
    Diluted   $ 0.64     $ 0.63     $ 1.95     $ 1.36  
                     
    Weighted average common shares outstanding                
    Basic     87,152,658       93,408,537       88,093,082       95,376,590  
    Diluted     87,536,847       93,408,537       88,340,592       95,376,590  
                     
    Comprehensive income:                
    Net income   $ 119,023     $ 117,593     $ 358,448     $ 257,220  
    Other comprehensive income                
    Foreign exchange translation adjustment, net of taxes     6,835       (4,005 )     3,745       170  
    Net change in unrealized cash flow hedges gain (loss), net of taxes     (19,568 )     (7,646 )     (30,931 )     (12,612 )
    Comprehensive income   $ 106,290     $ 105,942     $ 331,262     $ 244,778  
    Less: Comprehensive income attributable to noncontrolling interest     (54,083 )     (50,832 )     (164,990 )     (115,557 )
    Comprehensive income available for common stockholders   $ 52,207     $ 55,110     $ 166,272     $ 129,221  
                                     
    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except percentages)     2024       2023       2024       2023  
                     
    Reconciliation of Trading income, net to Adjusted Net Trading Income                
    Trading income, net   $ 443,997     $ 316,085     $ 1,278,487     $ 1,034,764  
    Commissions, net and technology services     131,621       110,276       376,333       341,223  
    Interest and dividends income     125,229       127,693       338,287       307,916  
    Brokerage, exchange, clearance fees and payments for order flow, net     (176,745 )     (123,245 )     (467,331 )     (391,238 )
    Interest and dividends expense     (136,070 )     (132,802 )     (385,791 )     (342,896 )
    Adjusted Net Trading Income   $ 388,032     $ 298,007     $ 1,139,985     $ 949,769  
                     
    Reconciliation of Net Income to EBITDA and Adjusted EBITDA                
    Net income     119,023       117,593       358,448       257,220  
    Financing interest expense on long-term borrowings     24,492       25,361       71,154       74,499  
    Debt issue cost related to debt refinancing, prepayment and commitment fees     1,767       1,796       27,740       5,744  
    Depreciation and amortization     16,486       15,815       48,640       47,076  
    Amortization of purchased intangibles and acquired capitalized software     11,848       15,967       38,688       48,007  
    Provision for income taxes     28,137       20,512       83,917       51,117  
    EBITDA   $ 201,753     $ 197,044     $ 628,587     $ 483,663  
    Severance     690       1,346       3,651       5,256  
    Transaction advisory fees and expenses     69       6       264       30  
    Termination of office leases     17       364       50       314  
    Other     (5,669 )     (74,599 )     (48,334 )     (67,396 )
    Share based compensation     17,945       15,353       50,941       47,108  
    Adjusted EBITDA   $ 214,805     $ 139,514     $ 635,159     $ 468,975  
                     
    Selected Operating Margins                
    GAAP Net income Margin (1)     16.8 %     18.7 %     17.5 %     14.6 %
    Non-GAAP Net income Margin (2)     30.7 %     39.5 %     31.4 %     27.1 %
    EBITDA Margin (3)     52.0 %     66.1 %     55.1 %     50.9 %
    Adjusted EBITDA Margin (4)     55.4 %     46.8 %     55.7 %     49.4 %
                     
    1 Calculated by dividing Net income by Total revenue.                
    2 Calculated by dividing Net income by Adjusted Net Trading Income.                
    3 Calculated by dividing EBITDA by Adjusted Net Trading Income.                
    4 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.                
                     
    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)
    (Continued)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except share and per share data)     2024       2023       2024       2023  
                     
    Reconciliation of Net Income to Normalized Adjusted Net Income                
    Net income   $ 119,023     $ 117,593     $ 358,448     $ 257,220  
    Provision for income taxes     28,137       20,512       83,917       51,117  
    Income before income taxes and noncontrolling interest   $ 147,160     $ 138,105     $ 442,365     $ 308,337  
    Amortization of purchased intangibles and acquired capitalized software     11,848       15,967       38,688       48,007  
    Debt issue cost related to debt refinancing, prepayment and commitment fees     1,767       1,796       27,740       5,744  
    Severance     690       1,346       3,651       5,256  
    Transaction advisory fees and expenses     69       6       264       30  
    Termination of office leases     17       364       50       314  
    Other     (5,669 )     (74,599 )     (48,334 )     (67,396 )
    Share based compensation     17,945       15,353       50,941       47,108  
    Normalized Adjusted Net Income before income taxes   $ 173,827     $ 98,338     $ 515,365     $ 347,400  
    Normalized provision for income taxes (1)     41,719       23,601       123,688       83,374  
    Normalized Adjusted Net Income   $ 132,108     $ 74,737     $ 391,677     $ 264,026  
                     
    Weighted Average Adjusted shares outstanding (2)     161,709,295       167,164,049       162,322,747       169,101,067  
                     
    Normalized Adjusted EPS   $ 0.82     $ 0.45     $ 2.41     $ 1.56  
                     
    (1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
    (2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company’s Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company’s Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company’s Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from the dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan during the three and six months ended September 30, 2024 and 2023.
    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Financial Condition (Unaudited)
             
    (in thousands, except share data)   September 30,
    2024
      December 31,
    2023
             
    Assets        
    Cash and cash equivalents   $ 701,405   $ 820,436  
    Cash and securities segregated under regulations and other     36,823     35,024  
    Securities borrowed     2,301,690     1,722,440  
    Securities purchased under agreements to resell     708,773     1,512,114  
    Receivables from broker-dealers and clearing organizations     1,194,193     737,724  
    Receivables from customers     169,565     106,245  
    Trading assets, at fair value     7,186,027     7,358,611  
    Property, equipment and capitalized software, net     93,899     100,365  
    Operating lease right-of-use assets     190,261     229,499  
    Goodwill     1,148,926     1,148,926  
    Intangibles (net of accumulated amortization)     214,971     257,520  
    Deferred taxes     122,399     133,760  
    Assets of business held for sale     4,637      
    Other assets     327,137     303,720  
    Total assets     14,400,706     14,466,384  
             
    Liabilities and equity        
    Liabilities        
    Short-term borrowings, net     128,761      
    Securities loaned     2,109,164     1,329,446  
    Securities sold under agreements to repurchase     1,045,811     1,795,994  
    Payables to broker-dealers and clearing organizations     619,640     1,167,712  
    Payables to customers     97,774     23,229  
    Trading liabilities, at fair value     6,335,171     6,071,352  
    Tax receivable agreement obligations     196,254     216,480  
    Accounts payable and accrued expenses and other liabilities     469,796     451,293  
    Operating lease liabilities     236,253     278,317  
    Long-term borrowings, net     1,741,543     1,727,205  
    Liabilities of business held for sale     1,184      
    Total liabilities     12,981,351     13,061,028  
             
    Total equity     1,419,355     1,405,356  
             
    Total liabilities and equity   $ 14,400,706   $ 14,466,384  
             
        As of September 30, 2024
    Ownership of Virtu Financial LLC Interests:   Interests   %
    Virtu Financial, Inc. – Class A Common Stock and Restricted Stock Units     91,902,168     57.2 %
    Non-controlling Interests (Virtu Financial LLC)     68,666,792     42.8 %
    Total Virtu Financial LLC Interests     160,568,960     100.0 %
                   

    About Virtu Financial, Inc.

    Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

    Cautionary Note Regarding Forward-Looking Statements

    This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties, clients, and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; potential consequences of recent SEC proposals focused on equity markets which may, if adopted, result in reduced overall and off-exchange trading volumes and market making opportunities, impose additional or heightened regulatory obligations on market makers and other market participants, and generally increase the implicit and explicit cost as well as the complexity of the U.S. equities eco-system for all participants; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

    CONTACT         

    Investor & Media Relations
    Andrew Smith
    investor_relations@virtu.com
    media@virtu.com

    The MIL Network

  • MIL-OSI: Valley National Bancorp Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the third quarter 2024 of $97.9 million, or $0.18 per diluted common share, as compared to the second quarter 2024 net income of $70.4 million, or $0.13 per diluted common share, and net income of $141.3 million, or $0.27 per diluted common share, for the third quarter 2023. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $96.8 million, or $0.18 per diluted common share, for the third quarter 2024, $71.6 million, or $0.13 per diluted common share, for the second quarter 2024, and $136.4 million, or $0.26 per diluted common share, for the third quarter 2023. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

    Ira Robbins, CEO, commented, “The third quarter’s financial results highlight the significant progress that we continue to make towards achieving our strategic balance sheet goals. On October 23, 2024, we entered into an agreement to sell performing commercial real estate loans expected to total over $800 million at a very modest discount of approximately 1 percent to a single investor. This economically compelling transaction is expected to close in the fourth quarter 2024 and reflects the strength and desirability of our commercial real estate portfolio. We have executed on a variety of strategic transactions this year that have notably strengthened our balance sheet and enhanced our financial flexibility.”

    Mr. Robbins continued, “This quarter’s results also indicated the early stages of normalized profitability which we expect will accelerate as we enter 2025. Net interest income and non-interest income both improved meaningfully from the second quarter 2024, and our operating expenses were well-controlled and effectively unchanged on a year-over-year basis. While recent weather events weighed on the sequential provision improvement that we anticipated, our pre-provision earnings continued to improve during the third quarter and could set the stage for more stable results in the near future. And most importantly, our thoughts are with those affected by the recent hurricanes in our Florida markets and the other areas in the southeast. We are strongly committed to supporting our associates, clients and communities throughout the rebuilding and recovery process.”

    Key financial highlights for the third quarter 2024:

    • Net Interest Income and Margin: Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Our net interest margin on a tax equivalent basis also increased by 2 basis points to 2.86 percent in the third quarter 2024 as compared to 2.84 percent for the second quarter 2024. The increases from the second quarter 2024 were mostly due to continued yield expansion on average loans and additional interest income and higher yields from targeted growth within our available for sale securities portfolio. See the “Net Interest Income and Margin” section below for more details.
    • Loan Portfolio: Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024 mostly due to the transfer of performing commercial real estate loans totaling $823.1 million, net of unearned fees, to loans held for sale at September 30, 2024 and normal repayment activity mainly within the commercial real estate non-owner occupied and multi-family loans, as we continue to actively reduce these loan categories. Our commercial and industrial loans grew $320.1 million, or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 due to solid organic growth during the third quarter 2024. Residential mortgage and total consumer loans also increased modestly during the third quarter 2024. See the “Loans” section below for more details.
    • Deposits: Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 as compared to $50.1 billion at June 30, 2024 mainly due to higher period-end direct commercial customer money market and non-interest bearing deposits, partially offset by a decline in time deposits. See the “Deposits” section below for more details.
    • Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $564.7 million and $532.5 million at September 30, 2024 and June 30, 2024, respectively, representing 1.14 percent and 1.06 percent of total loans at each respective date. During the third quarter 2024, we recorded a provision for credit losses for loans of $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The third quarter 2024 provision reflects, among other factors, increased quantitative reserves allocated to commercial real estate loans, significant commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene, which hit Florida in late September 2024.
    • Credit Quality: Non-accrual loans totaled $296.3 million, or 0.60 percent of total loans at September 30, 2024 as compared to $303.3 million, or 0.60 percent of total loans at June 30, 2024. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased to 0.35 percent of total loans at September 30, 2024 as compared to 0.14 percent at June 30, 2024 largely due to two well-secured commercial real estate loans at various stages of expected collection within the early stage delinquency categories. Net loan charge-offs totaled $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and third quarter 2023, respectively. The loan charge-offs in the third quarter 2024 included partial charge-offs totaling a combined $30.1 million related to two commercial real estate loan relationships. See the “Credit Quality” section below for more details.
    • Non-Interest Income: Non-interest income increased $9.5 million to $60.7 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to increases in other income; wealth management and trust fees; and service charges on deposits totaling $11.2 million, $2.0 million, and $1.6 million, respectively. The increases in the aforementioned categories were partially offset by a $5.8 million mark to market loss (recorded within net losses on sales of loans) associated with the performing commercial real estate loans transferred to loans held for sale at September 30, 2024, as well as lower swap fees related to commercial loan transactions (within capital market fees) and insurance commissions. The increase in other income was mostly the result of income from litigation settlements totaling $7.3 million for the third quarter 2024.
    • Non-Interest Expense: Non-interest expense decreased $8.0 million to $269.5 million for the third quarter 2024 as compared to the second quarter 2024 largely due to a $6.2 million decrease in technology, furniture and equipment expense and a $3.8 million decrease in professional and legal expenses, partially offset by higher net occupancy expense during the third quarter 2024.
    • Efficiency Ratio: Our efficiency ratio was 56.13 percent for the third quarter 2024 as compared to 59.62 percent and 56.72 percent for the second quarter 2024 and third quarter 2023, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
    • Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.63 percent, 5.70 percent and 8.06 percent for the third quarter 2024, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core income and charges, were 0.62 percent, 5.64 percent and 7.97 percent for the third quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

    Net Interest Income and Margin

    Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Interest income on a tax equivalent basis increased $27.1 million to $861.9 million for the third quarter 2024 as compared to the second quarter 2024. The increase was mostly due to higher yields on both new loan originations and adjustable rate loans, as well as higher yields and additional interest income from targeted purchases of taxable investments within the available for sale securities portfolio during the second and third quarter 2024. Total interest expense increased $18.3 million to $450.1 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to an increase in average time deposit balances coupled with higher costs on most interest bearing deposit products. See the “Deposits” and “Other Borrowings” sections below for more details.

    Net interest margin on a tax equivalent basis of 2.86 percent for the third quarter 2024 increased by 2 basis points from 2.84 percent for the second quarter 2024 and decreased 5 basis points from 2.91 percent for the third quarter 2023. The increase as compared to the second quarter 2024 was largely driven by the higher yield on average interest earning assets largely offset by an increase in the cost of average interest bearing liabilities. The yield on average interest earning assets increased by 10 basis points to 5.98 percent on a linked quarter basis largely due to higher yielding investment purchases and new loan originations during the second and third quarter 2024. The overall cost of average interest bearing liabilities increased 7 basis points to 4.22 percent for the third quarter 2024 as compared to the second quarter 2024 largely due to higher interest rates on deposits. Our cost of total average deposits was 3.25 percent for the third quarter 2024 as compared to 3.18 percent and 2.94 percent for the second quarter 2024 and the third quarter 2023, respectively.

    Loans, Deposits and Other Borrowings

    Loans. Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024. Commercial and industrial loans grew by $320.1 million , or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 largely due to our continued strategic focus on the expansion of new loan production within this category. Total commercial real estate (including construction) loans decreased $1.4 billion to $30.4 billion at September 30, 2024 from June 30, 2024. This decline was primarily driven by the transfer of $823.1 million of commercial real estate loans, net of unearned loan fees, from the loans held for investment portfolio to loans held for sale as of September 30, 2024. In addition, we remained highly selective on new originations and projects in an effort to reduce commercial real estate loan concentrations, mainly within the non-owner occupied and multifamily loan categories. Automobile loan balances increased by $60.9 million, or 13.8 percent on an annualized basis, to $1.8 billion at September 30, 2024 from June 30, 2024 mainly due to continued consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Other consumer loans decreased $42.4 million, or 15.3 percent on an annualized basis, to $1.1 billion at September 30, 2024 from June 30, 2024 primarily due to the negative impact of the high level of market interest rates on the demand and usage of collateralized personal lines of credit.

    Deposits. Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 from June 30, 2024 mainly due to an increase of $358.3 million in savings, NOW and money market deposits and an increase of $36.0 million in non-interest bearing deposits, partially offset by a decrease of $110.5 million in time deposits. Non-interest bearing deposit and savings, NOW and money market deposit balances increased at September 30, 2024 from June 30, 2024 mostly due to increases in national specialized deposits and higher direct commercial customer deposit accounts. Total indirect customer deposits (including both brokered money market and time deposits) totaled $9.1 billion in both September 30, 2024 and June 30, 2024. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 22 percent, 50 percent and 28 percent of total deposits as of September 30, 2024, respectively, as compared to 22 percent, 49 percent and 29 percent of total deposits as of June 30, 2024, respectively.

    Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $5.5 million to $58.3 million at September 30, 2024 from June 30, 2024. Long-term borrowings totaled $3.3 billion at September 30, 2024 and also remained relatively unchanged as compared to June 30, 2024.

    Credit Quality

    Hurricanes Helene and Milton. In the early stages of the fourth quarter 2024, the credit quality of our Florida loan portfolio has remained resilient in the aftermath of Hurricane Helene, which hit Florida in late September 2024, and Hurricane Milton, which made landfall on October 9, 2024. At this time, there have been relatively few loan concessions (mostly in the form of loan payment deferrals up to 90 days) for distressed borrowers impacted by the hurricanes. However, we continue to assess the impact of the hurricanes on our Florida client base and, where appropriate, we will work constructively with individual borrowers.

    Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $7.8 million to $305.1 million at September 30, 2024 as compared to June 30, 2024. Non-accrual loans decreased $7.0 million to $296.3 million at September 30, 2024 as compared to $303.3 million at June 30, 2024. Non-accrual construction and commercial real estate loans decreased $20.7 million and $9.3 million to $24.7 million and $113.8 million, respectively, at September 30, 2024 as compared to June 30, 2024 mainly due to loan payoffs during the third quarter 2024. The decreases in these loan categories were partially offset by two new non-accrual commercial and industrial loans totaling $19.0 million, as well as moderate increases in non-accrual residential mortgage and consumer loans at September 30, 2024. OREO decreased $887 thousand at September 30, 2024 from June 30, 2024 mostly due to the sale of one commercial property, which resulted in the recognition of an immaterial loss for the third quarter 2024.

    Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $102.3 million to $174.7 million, or 0.35 percent of total loans, at September 30, 2024 as compared to $72.4 million, or 0.14 percent of total loans at June 30, 2024. Loans 30 to 59 days past due increased $69.1 million to $115.1 million at September 30, 2024 as compared to June 30, 2024 mainly due to a $74.5 million increase in commercial real estate loans, partially offset by a $7.0 million decline in consumer loan delinquencies. The increase in commercial real estate loans 30 to 59 days past due was mostly due to one new delinquent loan totaling $40.9 million, which is expected to be fully repaid, subject to the borrower’s pending sale of certain collateral, as well as a few other new loan delinquencies. Loans 60 to 89 days past due increased $42.9 million to $54.8 million at September 30, 2024 as compared to June 30, 2024 mostly due to one well-secured commercial real estate loan totaling $43.9 million currently in the process of loan modification. Loans 90 days or more past due and still accruing interest decreased $9.7 million to $4.8 million at September 30, 2024 as compared to June 30, 2024 largely due to one $4.0 million construction loan that was fully repaid and one $4.2 million commercial real estate loan that migrated from this past due category to non-accrual loans during the third quarter 2024. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

    Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at September 30, 2024, June 30, 2024 and September 30, 2023:

        September 30, 2024   June 30, 2024   September 30, 2023
            Allocation       Allocation       Allocation
            as a % of       as a % of       as a % of
        Allowance   Loan   Allowance   Loan   Allowance   Loan
      Allocation   Category   Allocation   Category   Allocation   Category
      ($ in thousands)
    Loan Category:                      
    Commercial and industrial loans $ 166,365   1.70 %   $ 149,243   1.57 %   $ 133,988   1.44 %
    Commercial real estate loans:                      
      Commercial real estate   249,608   0.93       246,316   0.87       191,562   0.68  
      Construction   59,420   1.70       54,777   1.54       53,485   1.40  
    Total commercial real estate loans   309,028   1.02       301,093   0.95       245,047   0.77  
    Residential mortgage loans   51,545   0.91       47,697   0.85       44,621   0.80  
    Consumer loans:                      
      Home equity   3,303   0.57       3,077   0.54       3,689   0.67  
      Auto and other consumer   18,086   0.63       18,200   0.63       14,830   0.52  
    Total consumer loans   21,389   0.62       21,277   0.62       18,519   0.55  
    Allowance for loan losses   548,327   1.11       519,310   1.03       442,175   0.88  
    Allowance for unfunded credit commitments   16,344         13,231         20,170    
    Total allowance for credit losses for loans $ 564,671       $ 532,541       $ 462,345    
    Allowance for credit losses for loans as a % total loans     1.14 %       1.06 %       0.92 %
                                 

    Our loan portfolio, totaling $49.4 billion at September 30, 2024, had net loan charge-offs totaling $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and the third quarter 2023, respectively. Total gross loan charge-offs in the third quarter 2024 included partial charge-offs totaling $30.1 million related to two non-performing commercial real estate loan relationships that had combined specific reserves of $25.9 million within the allowance for loan losses at June 30, 2024.

    The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.14 percent at September 30, 2024, 1.06 percent at June 30, 2024, and 0.92 percent at September 30, 2023. For the third quarter 2024, the provision for credit losses for loans totaled $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The provision for credit losses remained somewhat elevated for the third quarter 2024 largely due to higher quantitative reserves allocated to commercial real estate loans, commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene.

    The allowance for unfunded credit commitments increased to $16.3 million at September 30, 2024 from $13.2 million at June 30, 2024 mainly due to increases in both non-cancellable construction commitments and commercial and industrial standby letters of credit.

    As previously noted, we are currently evaluating the impact of Hurricane Milton, and we also continue to evaluate any further impact of Hurricane Helene, on our loan portfolio. While not anticipated based on information currently available, Hurricane Milton and unexpected losses from Hurricane Helene could result in a significant increase to the current hurricane related reserves within the allowance, loan charge-offs and our provision for the fourth quarter 2024.

    Capital Adequacy

    Valley’s total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 12.56 percent, 9.57 percent, 10.29 percent and 8.40 percent, respectively, at September 30, 2024 as compared to 12.18 percent, 9.55 percent, 9.99 percent and 8.19 percent, respectively, at June 30, 2024. The increases in the total risk-based capital, Tier 1 capital and Tier 1 leverage ratios as compared to June 30, 2024 were largely due to Valley’s issuance of 6.0 million shares of its 8.250 percent Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C on August 5, 2024. Net proceeds to Valley after deducting underwriting discounts, commissions and offering expenses were approximately $144.7 million.

    Investor Conference Call

    Valley will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss the third quarter 2024 earnings and related matters. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, December 2, 2024. Investor presentation materials will be made available prior to the conference call at www.valley.com.

    About Valley

    As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to www.valley.com or call our Customer Care Center at 800-522-4100.

    Forward-Looking Statements

    The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

    • the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with the prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
    • the impact of unfavorable macroeconomic conditions or downturns, including an actual or threatened U.S. government shutdown, debt default or rating downgrade, instability or volatility in financial markets, unanticipated loan delinquencies, loss of collateral, decreased service revenues, increased business disruptions or failures, reductions in employment, and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as the outcome of the 2024 U.S. presidential election, geopolitical instabilities or events (including the Israel-Hamas war and the escalation and regional expansion thereof); natural and other disasters (including severe weather events, such as Hurricanes Helene and Milton); health emergencies; acts of terrorism; or other external events;
    • the impact of potential instability within the U.S. financial sector in the aftermath of the banking failures in 2023 and continued volatility thereafter, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
    • the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
    • changes in the statutes, regulations, policy, or enforcement priorities of the federal bank regulatory agencies;
    • the loss of or decrease in lower-cost funding sources within our deposit base;
    • damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;
    • a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
    • higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
    • the inability to grow customer deposits to keep pace with loan growth;
    • a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
    • the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
    • changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
    • greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
    • cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks;
    • results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
    • application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
    • our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
    • unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;
    • our ability to successfully execute our business plan and strategic initiatives; and
    • unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.

    A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023.

    We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    -Tables to Follow-

    VALLEY NATIONAL BANCORP
    CONSOLIDATED FINANCIAL HIGHLIGHTS

    SELECTED FINANCIAL DATA

      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    ($ in thousands, except for share data and stock price) 2024   2024   2023   2024   2023
    FINANCIAL DATA:                  
    Net interest income – FTE(1) $ 411,812     $ 402,984     $ 413,657     $ 1,209,643     $ 1,272,390  
    Net interest income $ 410,498     $ 401,685     $ 412,418     $ 1,205,731     $ 1,268,203  
    Non-interest income   60,671       51,213       58,664       173,299       173,038  
    Total revenue   471,169       452,898       471,082       1,379,030       1,441,241  
    Non-interest expense   269,471       277,497       267,133       827,278       822,270  
    Pre-provision net revenue   201,698       175,401       203,949       551,752       618,971  
    Provision for credit losses   75,024       82,070       9,117       202,294       29,604  
    Income tax expense   28,818       22,907       53,486       84,898       162,410  
    Net income   97,856       70,424       141,346       264,560       426,957  
    Dividends on preferred stock   6,117       4,108       4,127       14,344       12,031  
    Net income available to common shareholders $ 91,739     $ 66,316     $ 137,219     $ 250,216     $ 414,926  
    Weighted average number of common shares outstanding:                  
    Basic   509,227,538       509,141,252       507,650,668       508,904,353       507,580,197  
    Diluted   511,342,932       510,338,502       509,256,599       510,713,205       509,204,051  
    Per common share data:                  
    Basic earnings $ 0.18     $ 0.13     $ 0.27     $ 0.49     $ 0.82  
    Diluted earnings   0.18       0.13       0.27       0.49       0.81  
    Cash dividends declared   0.11       0.11       0.11       0.33       0.33  
    Closing stock price – high   9.34       8.02       10.30       10.80       12.59  
    Closing stock price – low   6.58       6.52       7.63       6.52       6.59  
    FINANCIAL RATIOS:                  
    Net interest margin   2.85 %     2.83 %     2.90 %     2.82 %     2.99 %
    Net interest margin – FTE(1)   2.86       2.84       2.91       2.83       3.00  
    Annualized return on average assets   0.63       0.46       0.92       0.57       0.93  
    Annualized return on avg. shareholders’ equity   5.70       4.17       8.56       5.20       8.72  
    NON-GAAP FINANCIAL DATA AND RATIOS:(2)                  
    Basic earnings per share, as adjusted $ 0.18     $ 0.13     $ 0.26     $ 0.50     $ 0.84  
    Diluted earnings per share, as adjusted   0.18       0.13       0.26       0.50       0.84  
    Annualized return on average assets, as adjusted   0.62 %     0.47 %     0.89 %     0.58 %     0.96 %
    Annualized return on average shareholders’ equity, as adjusted   5.64       4.24       8.26       5.27       8.94  
    Annualized return on avg. tangible shareholders’ equity   8.06       5.95       12.39       7.40       12.71  
    Annualized return on average tangible shareholders’ equity, as adjusted   7.97       6.05       11.95       7.50       13.04  
    Efficiency ratio   56.13       59.62       56.72       58.26       55.34  
                       
    AVERAGE BALANCE SHEET ITEMS:                  
    Assets $ 62,242,022     $ 61,518,639     $ 61,391,688     $ 61,674,588     $ 61,050,973  
    Interest earning assets   57,651,650       56,772,950       56,802,565       57,016,790       56,510,997  
    Loans   50,126,963       50,020,901       50,019,414       50,131,468       49,120,153  
    Interest bearing liabilities   42,656,956       41,576,344       40,829,078       41,932,616       39,802,966  
    Deposits   50,409,234       49,383,209       49,848,446       49,459,617       48,165,152  
    Shareholders’ equity   6,862,555       6,753,981       6,605,786       6,781,022       6,531,424  
                                           
      As Of
    BALANCE SHEET ITEMS: September 30,   June 30,   March 31,   December   September 30,
    (In thousands) 2024   2024   2024   2023   2023
    Assets $ 62,092,332     $ 62,058,974     $ 61,000,188     $ 60,934,974     $ 61,183,352  
    Total loans   49,355,319       50,311,702       49,922,042       50,210,295       50,097,519  
    Deposits   50,395,966       50,112,177       49,077,946       49,242,829       49,885,314  
    Shareholders’ equity   6,972,380       6,737,737       6,727,139       6,701,391       6,627,299  
                       
    LOANS:                  
    (In thousands)                  
    Commercial and industrial $ 9,799,287     $ 9,479,147     $ 9,104,193     $ 9,230,543     $ 9,274,630  
    Commercial real estate:                  
    Non-owner occupied   12,647,649       13,710,015       14,962,851       15,078,464       14,741,668  
    Multifamily   8,612,936       8,976,264       8,818,263       8,860,219       8,863,529  
    Owner occupied   5,654,147       5,536,844       4,367,839       4,304,556       4,435,853  
    Construction   3,487,464       3,545,723       3,556,511       3,726,808       3,833,269  
    Total commercial real estate   30,402,196       31,768,846       31,705,464       31,970,047       31,874,319  
    Residential mortgage   5,684,079       5,627,113       5,618,355       5,569,010       5,562,665  
    Consumer:                  
    Home equity   581,181       566,467       564,083       559,152       548,918  
    Automobile   1,823,738       1,762,852       1,700,508       1,620,389       1,585,987  
    Other consumer   1,064,838       1,107,277       1,229,439       1,261,154       1,251,000  
    Total consumer loans   3,469,757       3,436,596       3,494,030       3,440,695       3,385,905  
    Total loans $ 49,355,319     $ 50,311,702     $ 49,922,042     $ 50,210,295     $ 50,097,519  
                       
    CAPITAL RATIOS:                  
    Book value per common share $ 13.00     $ 12.82     $ 12.81     $ 12.79     $ 12.64  
    Tangible book value per common share(2)   9.06       8.87       8.84       8.79       8.63  
    Tangible common equity to tangible assets(2)   7.68 %     7.52 %     7.62 %     7.58 %     7.40 %
    Tier 1 leverage capital   8.40       8.19       8.20       8.16       8.08  
    Common equity tier 1 capital   9.57       9.55       9.34       9.29       9.21  
    Tier 1 risk-based capital   10.29       9.99       9.78       9.72       9.64  
    Total risk-based capital   12.56       12.18       11.88       11.76       11.68  
                                           
      Three Months Ended   Nine Months Ended
    ALLOWANCE FOR CREDIT LOSSES: September 30,   June 30,   September 30,   September 30,
    ($ in thousands) 2024   2024   2023   2024   2023
    Allowance for credit losses for loans                  
    Beginning balance $ 532,541     $ 487,269     $ 458,676     $ 465,550     $ 483,255  
    Impact of the adoption of ASU No. 2022-02                           (1,368 )
    Beginning balance, adjusted   532,541       487,269       458,676       465,550       481,887  
    Loans charged-off:                  
    Commercial and industrial   (7,501 )     (14,721 )     (7,487 )     (36,515 )     (37,399 )
    Commercial real estate   (33,292 )     (22,144 )     (255 )     (56,640 )     (2,320 )
    Construction   (4,831 )     (212 )           (12,637 )     (9,906 )
    Residential mortgage               (20 )           (169 )
    Total consumer   (2,597 )     (1,262 )     (1,156 )     (5,668 )     (3,024 )
    Total loans charged-off   (48,221 )     (38,339 )     (8,918 )     (111,460 )     (52,818 )
    Charged-off loans recovered:                  
    Commercial and industrial   3,162       742       3,043       4,586       6,615  
    Commercial real estate   66       150       5       457       33  
    Construction   1,535                   1,535        
    Residential mortgage   29       5       30       59       186  
    Total consumer   521       603       362       1,521       1,513  
    Total loans recovered   5,313       1,500       3,440       8,158       8,347  
    Total net charge-offs   (42,908 )     (36,839 )     (5,478 )     (103,302 )     (44,471 )
    Provision for credit losses for loans   75,038       82,111       9,147       202,423       24,929  
    Ending balance $ 564,671     $ 532,541     $ 462,345     $ 564,671     $ 462,345  
    Components of allowance for credit losses for loans:                  
    Allowance for loan losses $ 548,327     $ 519,310     $ 442,175     $ 548,327     $ 442,175  
    Allowance for unfunded credit commitments   16,344       13,231       20,170       16,344       20,170  
    Allowance for credit losses for loans $ 564,671     $ 532,541     $ 462,345     $ 564,671     $ 462,345  
    Components of provision for credit losses for loans:                  
    Provision for credit losses for loans $ 71,925     $ 86,901     $ 11,221     $ 205,549     $ 29,359  
    Provision (credit) for unfunded credit commitments   3,113       (4,790 )     (2,074 )     (3,126 )     (4,430 )
    Total provision for credit losses for loans $ 75,038     $ 82,111     $ 9,147     $ 202,423     $ 24,929  
    Annualized ratio of total net charge-offs to total average loans   0.34 %     0.29 %     0.04 %     0.27 %     0.12 %
    Allowance for credit losses for loans as a % of total loans   1.14 %     1.06 %     0.92 %     1.14 %     0.92 %
                                           
      As Of
    ASSET QUALITY: September 30,   June 30,   March 31,   December 31,   September 30,
    ($ in thousands) 2024   2024   2024   2023   2023
    Accruing past due loans:                  
    30 to 59 days past due:                  
    Commercial and industrial $ 4,537     $ 5,086     $ 6,202     $ 9,307     $ 10,687  
    Commercial real estate   76,370       1,879       5,791       3,008       8,053  
    Residential mortgage   19,549       17,389       20,819       26,345       13,159  
    Total consumer   14,672       21,639       14,032       20,554       15,509  
    Total 30 to 59 days past due   115,128       45,993       46,844       59,214       47,408  
    60 to 89 days past due:                  
    Commercial and industrial   1,238       1,621       2,665       5,095       5,720  
    Commercial real estate   43,926             3,720       1,257       2,620  
    Residential mortgage   6,892       6,632       5,970       8,200       9,710  
    Total consumer   2,732       3,671       1,834       4,715       1,720  
    Total 60 to 89 days past due   54,788       11,924       14,189       19,267       19,770  
    90 or more days past due:                  
    Commercial and industrial   1,786       2,739       5,750       5,579       6,629  
    Commercial real estate         4,242                    
    Construction         3,990       3,990       3,990       3,990  
    Residential mortgage   1,931       2,609       2,884       2,488       1,348  
    Total consumer   1,063       898       731       1,088       391  
    Total 90 or more days past due   4,780       14,478       13,355       13,145       12,358  
    Total accruing past due loans $ 174,696     $ 72,395     $ 74,388     $ 91,626     $ 79,536  
    Non-accrual loans:                  
    Commercial and industrial $ 120,575     $ 102,942     $ 102,399     $ 99,912     $ 87,655  
    Commercial real estate   113,752       123,011       100,052       99,739       83,338  
    Construction   24,657       45,380       51,842       60,851       62,788  
    Residential mortgage   33,075       28,322       28,561       26,986       21,614  
    Total consumer   4,260       3,624       4,438       4,383       3,545  
    Total non-accrual loans   296,319       303,279       287,292       291,871       258,940  
    Other real estate owned (OREO)   7,172       8,059       88       71       71  
    Other repossessed assets   1,611       1,607       1,393       1,444       1,314  
    Total non-performing assets $ 305,102     $ 312,945     $ 288,773     $ 293,386     $ 260,325  
    Total non-accrual loans as a % of loans   0.60 %     0.60 %     0.58 %     0.58 %     0.52 %
    Total accruing past due and non-accrual loans as a % of loans   0.95       0.75       0.72       0.76       0.68  
    Allowance for losses on loans as a % of non-accrual loans   185.05       171.23       163.33       152.83       170.76  
                                           

    NOTES TO SELECTED FINANCIAL DATA

    (1)   Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.  
    (2)   Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.  
           
    Non-GAAP Reconciliations to GAAP Financial Measures
     
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    ($ in thousands, except for share data) 2024   2024   2023   2024   2023
    Adjusted net income available to common shareholders (non-GAAP):                  
    Net income, as reported (GAAP) $ 97,856     $ 70,424     $ 141,346     $ 264,560     $ 426,957  
    Add: FDIC Special assessment (a)         1,363             8,757        
    Add: Losses on available for sale and held to maturity debt securities, net (b)   1       4       443       12       476  
    Add: Restructuring charge (c)         334       (675 )     954       10,507  
    Add: Mark to market loss on commercial real estate loans transferred to loans held for sale (d)   5,794                   5,794        
    Add: Provision for credit losses for available for sale securities (e)                           5,000  
    Add: Merger related expenses (f)                           4,133  
    Less: Litigation settlements (g)   (7,334 )                 (7,334 )      
    Less: Gain on sale of commercial premium finance lending division (h)                     (3,629 )      
    Less: Net gains on sales of office buildings (h)               (6,721 )           (6,721 )
    Total non-GAAP adjustments to net income   (1,539 )     1,701       (6,953 )     4,554       13,395  
    Income tax adjustments related to non-GAAP adjustments (i)   437       (482 )     1,970       (1,269 )     (2,378 )
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Dividends on preferred stock   6,117       4,108       4,127       14,344       12,031  
    Net income available to common shareholders, as adjusted (non-GAAP) $ 90,637     $ 67,535     $ 132,236     $ 253,501     $ 425,943  
    __________                  
    (a) Included in the FDIC insurance expense.
    (b) Included in gains (losses) on securities transactions, net.
    (c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
    (d) Included in (losses) gains on sales of loans, net.
    (e) Included in provision for credit losses for available for sale and held to maturity securities (tax disallowed).
    (f) Included in salary and employee benefits expense during the first quarter 2023.
    (g) Represents recoveries from legal settlements included in other income.
    (h) Included in gains (losses) on sales of assets, net within non-interest income.
    (i) Calculated using the appropriate blended statutory tax rate for the applicable period.
     
    Adjusted per common share data (non-GAAP):                  
    Net income available to common shareholders, as adjusted (non-GAAP) $ 90,637     $ 67,535     $ 132,236     $ 253,501     $ 425,943  
    Average number of shares outstanding   509,227,538       509,141,252       507,650,668       508,904,353       507,580,197  
    Basic earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.26     $ 0.50     $ 0.84  
    Average number of diluted shares outstanding   511,342,932       510,338,502       509,256,599       510,713,205       509,204,051  
    Diluted earnings, as adjusted (non-GAAP) $ 0.18     $ 0.13     $ 0.26     $ 0.50     $ 0.84  
    Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):                  
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Average shareholders’ equity $ 6,862,555     $ 6,753,981     $ 6,605,786     $ 6,781,022     $ 6,531,424  
    Less: Average goodwill and other intangible assets   2,008,692       2,016,766       2,042,486       2,016,790       2,051,727  
    Average tangible shareholders’ equity $ 4,853,863     $ 4,737,215     $ 4,563,300     $ 4,764,232     $ 4,479,697  
    Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)   7.97 %     6.05 %     11.95 %     7.50 %     13.04 %
                                           
    Non-GAAP Reconciliations to GAAP Financial Measures (Continued)
     
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    ($ in thousands, except for share data) 2024   2024   2023   2024   2023
    Adjusted annualized return on average assets (non-GAAP):                  
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Average assets $ 62,242,022     $ 61,518,639     $ 61,391,688     $ 61,674,588     $ 61,050,973  
    Annualized return on average assets, as adjusted (non-GAAP)   0.62 %     0.47 %     0.89 %     0.58 %     0.96 %
    Adjusted annualized return on average shareholders’ equity (non-GAAP):                  
    Net income, as adjusted (non-GAAP) $ 96,754     $ 71,643     $ 136,363     $ 267,845     $ 437,974  
    Average shareholders’ equity $ 6,862,555     $ 6,753,981     $ 6,605,786     $ 6,781,022     $ 6,531,424  
    Annualized return on average shareholders’ equity, as adjusted (non-GAAP)   5.64 %     4.24 %     8.26 %     5.27 %     8.94 %
    Annualized return on average tangible shareholders’ equity (non-GAAP):                  
    Net income, as reported (GAAP) $ 97,856     $ 70,424     $ 141,346     $ 264,560     $ 426,957  
    Average shareholders’ equity $ 6,862,555     $ 6,753,981     $ 6,605,786     $ 6,781,022     $ 6,531,424  
    Less: Average goodwill and other intangible assets   2,008,692       2,016,766       2,042,486       2,016,790       2,051,727  
    Average tangible shareholders’ equity $ 4,853,863     $ 4,737,215     $ 4,563,300     $ 4,764,232     $ 4,479,697  
    Annualized return on average tangible shareholders’ equity (non-GAAP)   8.06 %     5.95 %     12.39 %     7.40 %     12.71 %
    Efficiency ratio (non-GAAP):                  
    Non-interest expense, as reported (GAAP) $ 269,471     $ 277,497     $ 267,133     $ 827,278     $ 822,270  
    Less: FDIC Special assessment (pre-tax)         1,363             8,757        
    Less: Restructuring charge (pre-tax)         334       (675 )     954       10,507  
    Less: Merger-related expenses (pre-tax)                           4,133  
    Less: Amortization of tax credit investments (pre-tax)   5,853       5,791       4,191       17,206       13,462  
    Non-interest expense, as adjusted (non-GAAP) $ 263,618     $ 270,009     $ 263,617     $ 800,361     $ 794,168  
    Net interest income, as reported (GAAP)   410,498       401,685       412,418       1,205,731       1,268,203  
    Non-interest income, as reported (GAAP)   60,671       51,213       58,664       173,299       173,038  
    Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)   1       4       443       12       476  
    Add: Mark-to-market loss on commercial real estate loans transferred to loans held for sale (pre-tax)   5,794                   5,794        
    Less: Litigation settlements (pre-tax)   (7,334 )                 (7,334 )      
    Less: Gain on sale of premium finance division (pre-tax)                     (3,629 )      
    Less: Net gains on sales of office buildings (pre-tax)               (6,721 )           (6,721 )
    Non-interest income, as adjusted (non-GAAP) $ 59,132     $ 51,217     $ 52,386     $ 168,142     $ 166,793  
    Gross operating income, as adjusted (non-GAAP) $ 469,630     $ 452,902     $ 464,804     $ 1,373,873     $ 1,434,996  
    Efficiency ratio (non-GAAP)   56.13 %     59.62 %     56.72 %     58.26 %     55.34 %
                                           
      As of
      September 30,   June 30,   March 31,   December 31,   September 30,
    ($ in thousands, except for share data) 2024   2024   2024   2023   2023
    Tangible book value per common share (non-GAAP):                  
    Common shares outstanding   509,252,936       509,205,014       508,893,059       507,709,927       507,660,742  
    Shareholders’ equity (GAAP) $ 6,972,380     $ 6,737,737     $ 6,727,139     $ 6,701,391     $ 6,627,299  
    Less: Preferred stock   354,345       209,691       209,691       209,691       209,691  
    Less: Goodwill and other intangible assets   2,004,414       2,012,580       2,020,405       2,029,267       2,038,202  
    Tangible common shareholders’ equity (non-GAAP) $ 4,613,621     $ 4,515,466     $ 4,497,043     $ 4,462,433     $ 4,379,406  
    Tangible book value per common share (non-GAAP) $ 9.06     $ 8.87     $ 8.84     $ 8.79     $ 8.63  
    Tangible common equity to tangible assets (non-GAAP):                  
    Tangible common shareholders’ equity (non-GAAP) $ 4,613,621     $ 4,515,466     $ 4,497,043     $ 4,462,433     $ 4,379,406  
    Total assets (GAAP)   62,092,332       62,058,974       61,000,188       60,934,974       61,183,352  
    Less: Goodwill and other intangible assets   2,004,414       2,012,580       2,020,405       2,029,267       2,038,202  
    Tangible assets (non-GAAP) $ 60,087,918     $ 60,046,394     $ 58,979,783     $ 58,905,707     $ 59,145,150  
    Tangible common equity to tangible assets (non-GAAP)   7.68 %     7.52 %     7.62 %     7.58 %     7.40 %
                                           

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (in thousands, except for share data)

      September 30,   December 31,
      2024   2023
      (Unaudited)    
    Assets      
    Cash and due from banks $ 511,945     $ 284,090  
    Interest bearing deposits with banks   527,960       607,135  
    Investment securities:      
    Equity securities   73,071       64,464  
    Trading debt securities   3,996       3,973  
    Available for sale debt securities   2,602,260       1,296,576  
    Held to maturity debt securities (net of allowance for credit losses of $1,076 at September 30, 2024 and $1,205 at December 31, 2023)   3,573,960       3,739,208  
    Total investment securities   6,253,287       5,104,221  
    Loans held for sale (includes fair value of $17,153 at September 30, 2024 and $20,640 at December 31, 2023 for loans originated for sale)   843,201       30,640  
    Loans   49,355,319       50,210,295  
    Less: Allowance for loan losses   (548,327 )     (446,080 )
    Net loans   48,806,992       49,764,215  
    Premises and equipment, net   356,649       381,081  
    Lease right of use assets   335,032       343,461  
    Bank owned life insurance   730,081       723,799  
    Accrued interest receivable   250,131       245,498  
    Goodwill   1,868,936       1,868,936  
    Other intangible assets, net   135,478       160,331  
    Other assets   1,472,640       1,421,567  
    Total Assets $ 62,092,332     $ 60,934,974  
    Liabilities      
    Deposits:      
    Non-interest bearing $ 11,153,754     $ 11,539,483  
    Interest bearing:      
    Savings, NOW and money market   25,069,405       24,526,622  
    Time   14,172,807       13,176,724  
    Total deposits   50,395,966       49,242,829  
    Short-term borrowings   58,268       917,834  
    Long-term borrowings   3,274,340       2,328,375  
    Junior subordinated debentures issued to capital trusts   57,368       57,108  
    Lease liabilities   394,971       403,781  
    Accrued expenses and other liabilities   939,039       1,283,656  
    Total Liabilities   55,119,952       54,233,583  
    Shareholders’ Equity      
    Preferred stock, no par value; 50,000,000 authorized shares:      
    Series A (4,600,000 shares issued at September 30, 2024 and December 31, 2023)   111,590       111,590  
    Series B (4,000,000 shares issued at September 30, 2024 and December 31, 2023)   98,101       98,101  
    Series C (6,000,000 shares issued at September 30, 2024)   144,654        
    Common stock (no par value, authorized 650,000,000 shares; issued 509,252,936 shares at September 30, 2024 and 507,896,910 shares at December 31, 2023)   178,661       178,187  
    Surplus   5,002,718       4,989,989  
    Retained earnings   1,551,428       1,471,371  
    Accumulated other comprehensive loss   (114,772 )     (146,456 )
    Treasury stock, at cost (186,983 common shares at December 31, 2023)         (1,391 )
    Total Shareholders’ Equity   6,972,380       6,701,391  
    Total Liabilities and Shareholders’ Equity $ 62,092,332     $ 60,934,974  
                   

    VALLEY NATIONAL BANCORP
    CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (in thousands, except for share data)

      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
      2024   2024   2023   2024   2023
    Interest Income                  
    Interest and fees on loans $ 786,680     $ 770,964     $ 753,638     $ 2,329,197     $ 2,124,036
    Interest and dividends on investment securities:                  
    Taxable   49,700       40,460       32,383       125,957       96,591
    Tax-exempt   4,855       4,799       4,585       14,450       15,485
    Dividends   5,929       6,341       5,299       19,098       18,001
    Interest on federal funds sold and other short-term investments   13,385       10,902       17,113       33,969       66,594
    Total interest income   860,549       833,466       813,018       2,522,671       2,320,707
    Interest Expense                  
    Interest on deposits:                  
    Savings, NOW and money market   235,371       231,597       201,916       699,474       517,524
    Time   174,741       160,442       164,336       486,248       370,398
    Interest on short-term borrowings   451       691       5,189       21,754       89,345
    Interest on long-term borrowings and junior subordinated debentures   39,488       39,051       29,159       109,464       75,237
    Total interest expense   450,051       431,781       400,600       1,316,940       1,052,504
    Net Interest Income   410,498       401,685       412,418       1,205,731       1,268,203
    (Credit) provision for credit losses for available for sale and held to maturity securities   (14 )     (41 )     (30 )     (129 )     4,675
    Provision for credit losses for loans   75,038       82,111       9,147       202,423       24,929
    Net Interest Income After Provision for Credit Losses   335,474       319,615       403,301       1,003,437       1,238,599
    Non-Interest Income                  
    Wealth management and trust fees   15,125       13,136       11,417       46,191       32,180
    Insurance commissions   2,880       3,958       2,336       9,089       7,895
    Capital markets   6,347       7,779       7,141       19,796       35,000
    Service charges on deposit accounts   12,826       11,212       10,952       35,287       31,970
    Gains (losses) on securities transactions, net   47       3       (398 )     99       197
    Fees from loan servicing   3,443       2,691       2,681       9,322       8,054
    (Losses) gains on sales of loans, net   (3,644 )     884       2,023       (1,142 )     3,752
    Gains (losses) on sales of assets, net   55       (2 )     6,653       3,747       6,938
    Bank owned life insurance   5,387       4,545       2,709       13,167       7,736
    Other   18,205       7,007       13,150       37,743       39,316
    Total non-interest income   60,671       51,213       58,664       173,299       173,038
    Non-Interest Expense                  
    Salary and employee benefits expense   138,832       140,815       137,292       421,478       431,872
    Net occupancy expense   26,973       24,252       24,675       75,548       73,880
    Technology, furniture and equipment expense   28,962       35,203       37,320       99,627       106,304
    FDIC insurance assessment   14,792       14,446       7,946       47,474       27,527
    Amortization of other intangible assets   8,692       8,568       9,741       26,672       30,072
    Professional and legal fees   14,118       17,938       17,109       48,521       55,329
    Amortization of tax credit investments   5,853       5,791       4,191       17,206       13,462
    Other   31,249       30,484       28,859       90,752       83,824
    Total non-interest expense   269,471       277,497       267,133       827,278       822,270
    Income Before Income Taxes   126,674       93,331       194,832       349,458       589,367
    Income tax expense   28,818       22,907       53,486       84,898       162,410
    Net Income   97,856       70,424       141,346       264,560       426,957
    Dividends on preferred stock   6,117       4,108       4,127       14,344       12,031
    Net Income Available to Common Shareholders $ 91,739     $ 66,316     $ 137,219     $ 250,216     $ 414,926
                                         

    VALLEY NATIONAL BANCORP
    Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and
    Net Interest Income on a Tax Equivalent Basis

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
      Average       Avg.   Average       Avg.   Average       Avg.
    ($ in thousands) Balance   Interest   Rate   Balance   Interest   Rate   Balance   Interest   Rate
    Assets                                  
    Interest earning assets:                              
    Loans (1)(2) $ 50,126,963   $ 786,704     6.28 %   $ 50,020,901   $ 770,987     6.17 %   $ 50,019,414   $ 753,662     6.03 %
    Taxable investments (3)   5,977,211     55,629     3.72       5,379,101     46,801     3.48       4,915,778     37,682     3.07  
    Tax-exempt investments (1)(3)   573,059     6,145     4.29       575,272     6,075     4.22       620,439     5,800     3.74  
    Interest bearing deposits with banks   974,417     13,385     5.49       797,676     10,902     5.47       1,246,934     17,113     5.49  
    Total interest earning assets   57,651,650     861,863     5.98       56,772,950     834,765     5.88       56,802,565     814,257     5.73  
    Other assets   4,590,372             4,745,689             4,589,123        
    Total assets $ 62,242,022           $ 61,518,639           $ 61,391,688        
    Liabilities and shareholders’ equity                                  
    Interest bearing liabilities:                                  
    Savings, NOW and money market deposits $ 25,017,504   $ 235,371     3.76 %   $ 24,848,266   $ 231,597     3.73 %   $ 23,016,737   $ 201,916     3.51 %
    Time deposits   14,233,209     174,741     4.91       13,311,381     160,442     4.82       14,880,311     164,336     4.42  
    Short-term borrowings   81,251     451     2.22       97,502     691     2.83       436,518     5,189     4.75  
    Long-term borrowings (4)   3,324,992     39,488     4.75       3,319,195     39,051     4.71       2,495,512     29,159     4.67  
    Total interest bearing liabilities   42,656,956     450,051     4.22       41,576,344     431,781     4.15       40,829,078     400,600     3.92  
    Non-interest bearing deposits   11,158,521             11,223,562             11,951,398        
    Other liabilities   1,563,990             1,964,752             2,005,426        
    Shareholders’ equity   6,862,555             6,753,981             6,605,786        
    Total liabilities and shareholders’ equity $ 62,242,022           $ 61,518,639           $ 61,391,688        
                                       
    Net interest income/interest rate spread (5)     $ 411,812     1.76 %       $ 402,984     1.73 %       $ 413,657     1.81 %
    Tax equivalent adjustment       (1,314 )             (1,299 )             (1,239 )    
    Net interest income, as reported     $ 410,498             $ 401,685             $ 412,418      
    Net interest margin (6)         2.85             2.83             2.90  
    Tax equivalent effect         0.01             0.01             0.01  
    Net interest margin on a fully tax equivalent basis (6)         2.86 %           2.84 %           2.91 %

    _________

    (1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
    (2) Loans are stated net of unearned income and include non-accrual loans.
    (3) The yield for securities that are classified as available for sale is based on the average historical amortized cost.
    (4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of condition.
    (5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
    (6) Net interest income as a percentage of total average interest earning assets.
       

    SHAREHOLDERS RELATIONS
    Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

    Contact:   Michael D. Hagedorn
        Senior Executive Vice President and
        Chief Financial Officer
        973-872-4885

    The MIL Network

  • MIL-OSI: Nasdaq Announces Quarterly Dividend of $0.24 Per Share

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Nasdaq, Inc. (Nasdaq: NDAQ) has declared a regular quarterly dividend of $0.24 per share on the company’s outstanding common stock. The dividend is payable on December 20, 2024 to shareholders of record at the close of business on December 6, 2024. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.

    About Nasdaq

    Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    Cautionary Note Regarding Forward-Looking Statements

    Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, information regarding our dividend program and future payment obligations. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

    Media Relations Contacts:

    Nick Jannuzzi
    +1.973.760.1741
    Nicholas.Jannuzzi@Nasdaq.com

    Nick Eghtessad
    +1.929.996.8894
    Nick.Eghtessad@Nasdaq.com

    Investor Relations Contact:

    Ato Garrett
    +1.212.401.8737
    Ato.Garrett@Nasdaq.com

    -NDAQF-

    The MIL Network

  • MIL-OSI Economics: Joint report explores scope for coordinated approaches on climate action, carbon pricing, and policy spillovers

    Source: World Trade Organization

    The report was presented on the 23rd of October by the Joint Task Force on Climate Action, Carbon Pricing, and Policy Spillovers, convened by the World Trade Organization and joined by the International Monetary Fund, the Organisation for Economic Co-operation and Development, United Nations Trade and Development (UNCTAD), and the World Bank.

    Entitled “Working Together for Better Climate Action: Carbon Pricing, Policy Spillovers, and Global Climate Goals,” the report arrives at a time when countries around the world are scaling up actions to curb climate change. Mitigation policies are on the rise, including carbon pricing policies, with 75 carbon taxes and emission trading schemes currently in effect worldwide, covering approximately 24 per cent of global emissions

    The report stresses that climate action needs to be stepped up to meet global emission reduction targets, while contributing to broader development goals. It also makes four important contributions to that end: 

    • The report provides a common understanding of carbon pricing metrics to improve transparency on how countries are shifting incentives for decarbonization.
    • The report examines the composition of climate change mitigation policies, emphasizing the important role of carbon pricing as a cost-effective instrument that also raises revenues.
    • It outlines how international organizations can support the coordination of policies to foster positive and limit negative cross-border spillovers from climate change mitigation policies. The report also analyses the advantages and disadvantages of carbon border adjustment policies, including their impact on developing countries.
    • It shows how such coordination can help to scale up climate action by closing the transparency, implementation and ambition gaps.

    The report also makes clear that international organizations’ future work can help fill important knowledge gaps. These include a need for more granular and better data on embedded carbon prices and embedded emissions, the design of border adjustment policies and their interoperability, and other approaches to enhance cooperation to increase ambition and ensure a just transition for all.

    WTO Director-General Ngozi Okonjo-Iweala said: “Trade-related climate policies are on the rise, with over 5,500 measures linked to climate objectives notified to the WTO from 2009-2022. Such policies lead to cross-border spillovers which can increase trade tensions and retaliatory trade actions. Future work by international organizations should focus on concrete ways to come to the coordination of more ambitious carbon pricing policies which help to close the climate action gap and address their cross-border spillovers. This may require a framework to ensure interoperability between carbon pricing and other climate mitigation policies.”

    IMF Managing Director Kristalina Georgieva said: “This joint report of the five institutions highlights why carbon pricing and equivalent policies are important to scale up climate action. Global emissions need to be cut urgently to put the world on track to achieve the Paris goals and global ambition needs to be doubled to quadrupled. Carbon pricing should be an integral part of a well-designed policy mix, complemented with public investment support and sectoral policies, and international coordination on mitigation action could unlock progress.”

    OECD Secretary-General Mathias Cormann said: “Countries currently take different approaches to reduce emissions, but achieving net zero requires us to align these efforts for a truly global impact. The OECD’s Inclusive Forum on Carbon Mitigation Approaches, now with 59 members, is bringing together national perspectives and building a common understanding of climate policies and their effects. More coherent and better-coordinated global mitigation policies can help prevent negative cross-border impacts such as carbon leakage or trade distortions, while maximizing opportunities for innovation, cost savings and shared benefits from the climate transition.”

    UNCTAD Secretary-General Rebeca Grynspan stated: “To ensure a just and green transition, UNCTAD encourages and supports developing countries in crafting the right policy mix to advance climate mitigation. We are strengthening our research and providing a safe space for dialogue to ensure that climate-related measures, including Border Carbon Adjustments mechanisms (BCAs) are evidence based and minimize negative spillovers on developing countries and other sustainable development goals. This is especially critical for less advanced economies, which often have limited productive capacity, infrastructure for monitoring, verification, reporting, and fiscal space. We are committed to helping developing countries decarbonize and diversify their economies by seizing environmental-related export opportunities and working with our member states to reduce the compliance and trade costs associated with these transitions.” 

    Axel van Trotsenburg, World Bank’s Senior Managing Director (SMD), said: “Through its technical assistance and financing, the World Bank helps countries make sure climate policies are tailored to each country’s context, capacities, political constraints, and development priorities. We think carbon pricing can play a central role in these policies, because it provides the right incentive for the private sector and creates public revenues to support broad development progress and help vulnerable populations manage the green energy transition. But with every country introducing their own climate policies, there is also a growing need for more cooperation and coordination. The product of in-depth exchanges across five international organizations, this report provides concrete ideas to make sure climate policies are designed in ways that benefit lower-income economies and help them accelerate their development, create jobs, and participate in global value chains.”

    The report is available here.

    Share

    MIL OSI Economics

  • MIL-OSI Economics: RBI imposes monetary penalty on The Aurangabad District Central Co-operative Bank Limited, Bihar

    Source: Reserve Bank of India

    The Reserve Bank of India (RBI) has, by an order dated October 22, 2024, imposed a monetary penalty of ₹1.25 lakh (Rupees One Lakh Twenty Five Thousand only) on The Aurangabad District Central Co-operative Bank Ltd., Bihar (the bank) for contravention of the provisions of section 26A read with section 56 of the Banking Regulation Act, 1949 (BR Act) and non-compliance with certain directions issued by RBI on ‘Membership of Credit Information Companies (CICs) by Co-operative Banks’. This penalty has been imposed in exercise of powers vested in RBI, conferred under section 47A(1)(c) read with sections 46(4)(i) and 56 of BR Act and section 25 of the Credit Information Companies (Regulation) Act, 2005.

    The statutory inspection of the bank was conducted by the National Bank for Agriculture and Rural Development (NABARD) with reference to its financial position as on March 31, 2023. Based on supervisory findings of contravention of statutory provisions / non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions.

    After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, RBI found, inter alia, that the following charges against the Bank were sustained, warranting imposition of monetary penalty:

    The bank had failed to:

    1. transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period; and

    2. submit credit information of its borrowers to any of the four Credit Information Companies.

    This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/1363

    MIL OSI Economics

  • MIL-OSI Submissions: WHO – Regional health leaders agree to improve financing to achieve universal health coverage, prioritize digital health

    Source: World Health Organization (WHO)

    MANILA, 24 October 2024 – Health leaders from nations across Asia and the Pacific today endorsed action frameworks on health financing and digital health at the seventy-fifth session of the World Health Organization (WHO) Regional Committee for the Western Pacific.

    Health financing to achieve universal health coverage and sustainable development

    Despite recent reforms in health financing, public health spending in the Western Pacific Region remains inadequate to meet growing needs. In many countries, current policies have not yet achieved the goals of equitable service access and financial protection. As a result, families are being pushed into poverty from the financial burden of paying for health services. In 2019 alone, more than 300 million people in the Western Pacific faced catastrophic health costs. Medicines and outpatient care are the primary drivers of out-of-pocket spending, exposing critical coverage gaps in primary health care (PHC) systems.

    Increasing public health spending, prioritizing PHC and adopting comprehensive financing strategies to promote health in national development are essential to achieving universal health coverage(UHCUHC) and sustainable development.

    The Regional Committee, WHO’s governing body in the Western Pacific, today endorsed the Regional Action Framework for Health Financing to Achieve Universal Health Coverage and Sustainable Development in the Western Pacific. The Framework aims to improve health financing through five action domains: 1) greater reliance on public funding for health; 2) more equitable and efficient health spending; 3) financing PHC now and into the future; 4) strengthening governance for health financing; and 5) promoting health for all in economic and social policy.

    Accelerating digital health transformation

    The Regional Committee also considered digital health – the use of information and communications technology to manage health and promote well-being – which is playing an increasingly significant role in transforming health care by leveraging technology to increase access to care. Digital health is growing rapidly in the Western Pacific Region. However, these changes bring about new challenges related to governance, coordination with a wide range of actors, sustainable financing, and the ethical and secure use of digital health tools and data.

    The Regional Action Framework on Digital Health in the Western Pacificendorsed by the Region’s health leaders today will guide countries and areas in developing national digital health plans. It will also facilitate collaboration with WHO to advance national digital health strategies aligned with country priorities. The Framework calls on countries to prioritize governance, socio-technical infrastructure, financing and economics, digital health solutions, and data in strengthening health systems in the era of digital transformation.

    Achieving transformative primary health care

    Although more than 45 years have passed since primary health care (PHC) was identified as the cornerstone for achieving Health for All in theDeclaration of Alma-Ata, many health systems in our Region remain hospital-centric, while PHC is understaffed and under resourced. With countries facing rapidly ageing populations, an increased burden of NCDs and health security risks, a worsening economic outlook and other changes, transformative PHC is more critical than ever.

    In a panel discussion held at the Regional Committee on Tuesday, delegates from Cambodia and Singapore and a representative of the Asian Development Bank discussed how a transformative PHC approach – which emphasizes keeping people healthy rather than only treating the sick, and the importance of active community engagement and effective communication – can improve health outcomes.

    Recognizing the need to support countries in achieving transformative PHC, the Regional Committee in 2022 endorsed the Regional Framework on the Future of Primary Health Care in the Western Pacific. It highlights five strategic areas for health system transformation, covering models of service delivery, individual and community empowerment, the health workforce, health financing and enabling healthy environments. WHO is supporting countries with implementation of the Regional Framework.

    Improving oral health

    On Wednesday, delegates from Malaysia, Tonga and Vanuatu participated in a panel discussion on oral health. In the Western Pacific Region, the rate of oral diseases such as tooth decay, gum disease and tooth loss has grown by 30% over the past 30 years. One in five adults over the age of 60 has lost all their teeth, causing difficulty in eating, poor nutrition and a lower quality of life.

    Oral diseases disproportionally affect poor and disadvantaged populations. But they are mostly preventable and can be treated in their early stages. Left unaddressed, they cause pain and reduce the quality of life of individuals affected. At the population level, they add to the burden of noncommunicable diseases and impact health systems and economies in the Region.

    The WHO Global Strategy and Action Plan on Oral Health (2023–2030)was developed in response to a 2021 World Health Assembly resolution calling for a shift in oral health policy planning from traditional restorative dental care to a focus on promoting oral health and preventing oral diseases. WHO is working to accelerate the implementation of the Global Strategy in the Western Pacific, making oral health an integral part of universal health coverage and improving access to essential oral health services for everyone, especially the vulnerable.

    Accreditation of non-State actors to attend Regional Committee meetings

    The Regional Committee for the Western Pacific also adopted a decision to formalize the procedure for non-State actors that are not already in official relations with WHO to be accredited as observers at their meetings. The decision highlights the valuable role that non-State actors play in society, recognizes their contributions to advancing public health and to supporting the achievement of WHO’s strategic objectives. It marks an important step towards strengthening regional health governance, and a more inclusive approach to knowledge sharing, dialogue and health policy making.

    Expected closure of the session, time and place of next year’s meeting

    The seventy-fifth session of the Regional Committee for the Western Pacific is expected to conclude tomorrow.

    Notes:

    The seventy-fifth session of the Western Pacific Regional Committee began on 21 October and is scheduled to conclude on 25 October at WHO’s Regional Office for the Western Pacific in Manila, Philippines. The agenda and timetable are available online. A livestream of proceedings, all other official documents, as well as fact sheets and videos on the issues to be addressed can be accessed here. For real-time updates, follow @WHOWPRO on Facebook, X, Instagram and YouTube and the hashtag #RCM75.

    Working with 194 Member States across six regions, WHO is the United Nations specialized agency responsible for public health. Each WHO region has a regional committee – a governing body composed of ministers of health and senior officials from Member States. Each regional committee meets annually to agree on health actions and to chart priorities for WHO’s work.

    The WHO Western Pacific Region is home to more than 1.9 billion people across 37 countries and areas: American Samoa (United States of America), Australia, Brunei Darussalam, Cambodia, China, Cook Islands, Fiji, French Polynesia (France), Guam (United States of America), Hong Kong SAR (China), Japan, Kiribati, the Lao People’s Democratic Republic, Macao SAR (China), Malaysia, the Marshall Islands, the Federated States of Micronesia, Mongolia, Nauru, New Caledonia (France), New Zealand, Niue, the Commonwealth of the Northern Mariana Islands (United States of America), Palau, Papua New Guinea, the Philippines, Pitcairn Islands (United Kingdom of Great Britain and Northern Ireland), the Republic of Korea, Samoa, Singapore, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu and Viet Nam, Wallis and Futuna (France).

    MIL OSI – Submitted News

  • MIL-OSI Global: The Terminator at 40: this sci-fi ‘B-movie’ still shapes how we view the threat of AI

    Source: The Conversation – UK – By Tom F.A Watts, Postdoctoral Fellow, Department of Politics, International Relations and Philosophy, Royal Holloway University of London

    October 26, 2024 marks the 40th anniversary of director James Cameron’s science fiction classic, The Terminator – a film that popularised society’s fear of machines that can’t be reasoned with, and that “absolutely will not stop … until you are dead”, as one character memorably puts it.

    The plot concerns a super-intelligent AI system called Skynet which has taken over the world by initiating nuclear war. Amid the resulting devastation, human survivors stage a successful fightback under the leadership of the charismatic John Connor.

    In response, Skynet sends a cyborg assassin (played by Arnold Schwarzenegger) back in time to 1984 – before Connor’s birth – to kill his future mother, Sarah. Such is John Connor’s importance to the war that Skynet banks on erasing him from history to preserve its existence.

    Today, public interest in artificial intelligence has arguably never been greater. The companies developing AI typically promise their technologies will perform tasks faster and more accurately than people. They claim AI can spot patterns in data that are not obvious, enhancing human decision-making. There is a widespread perception that AI is poised to transform everything from warfare to the economy.

    Immediate risks include introducing biases into algorithms for screening job applications and the threat of generative AI displacing humans from certain types of work, such as software programming.

    But it is the existential danger that often dominates public discussion – and the six Terminator films have exerted an outsize influence on how these arguments are framed. Indeed, according to some, the films’ portrayal of the threat posed by AI-controlled machines distracts from the substantial benefits offered by the technology.

    Official trailer for The Terminator (1984)

    The Terminator was not the first film to tackle AI’s potential dangers. There are parallels between Skynet and the HAL 9000 supercomputer in Stanley Kubrick’s 1968 film, 2001: A Space Odyssey.

    It also draws from Mary Shelley’s 1818 novel, Frankenstein, and Karel Čapek’s 1921 play, R.U.R.. Both stories concern inventors losing control over their creations.

    On release, it was described in a review by the New York Times as a “B-movie with flair”. In the intervening years, it has been recognised as one of the greatest science fiction movies of all time. At the box office, it made more than 12 times its modest budget of US$6.4 million (£4.9 million at today’s exchange rate).

    What was arguably most novel about The Terminator is how it re-imagined longstanding fears of a machine uprising through the cultural prism of 1980s America. Much like the 1983 film WarGames, where a teenager nearly triggers World War 3 by hacking into a military supercomputer, Skynet highlights cold war fears of nuclear annihilation coupled with anxiety about rapid technological change.




    Read more:
    Science fiction helps us deal with science fact: a lesson from Terminator’s killer robots


    Forty years on, Elon Musk is among the technology leaders who have helped keep a focus on the supposed existential risk of AI to humanity. The owner of X (formerly Twitter) has repeatedly referenced the Terminator franchise while expressing concerns about the hypothetical development of superintelligent AI.

    But such comparisons often irritate the technology’s advocates. As the former UK technology minister Paul Scully said at a London conference in 2023: “If you’re only talking about the end of humanity because of some rogue, Terminator-style scenario, you’re going to miss out on all of the good that AI [can do].”

    That’s not to say there aren’t genuine concerns about military uses of AI – ones that may even seem to parallel the film franchise.

    AI-controlled weapons systems

    To the relief of many, US officials have said that AI will never take a decision on deploying nuclear weapons. But combining AI with autonomous weapons systems is a possibility.

    These weapons have existed for decades and don’t necessarily require AI. Once activated, they can select and attack targets without being directly operated by a human. In 2016, US Air Force general Paul Selva coined the term “Terminator conundrum” to describe the ethical and legal challenges posed by these weapons.

    The Terminator’s director James Cameron says ‘the weaponisation of AI is the biggest danger’.

    Stuart Russell, a leading UK computer scientist, has argued for a ban on all lethal, fully autonomous weapons, including those with AI. The main risk, he argues, is not from a sentient Skynet-style system going rogue, but how well autonomous weapons might follow our instructions, killing with superhuman accuracy.

    Russell envisages a scenario where tiny quadcopters equipped with AI and explosive charges could be mass-produced. These “slaughterbots” could then be deployed in swarms as “cheap, selective weapons of mass destruction”.

    Countries including the US specify the need for human operators to “exercise appropriate levels of human judgment over the use of force” when operating autonomous weapon systems. In some instances, operators can visually verify targets before authorising strikes, and can “wave off” attacks if situations change.

    AI is already being used to support military targeting. According to some, it’s even a responsible use of the technology, since it could reduce collateral damage. This idea evokes Schwarzenegger’s role reversal as the benevolent “machine guardian” in the original film’s sequel, Terminator 2: Judgment Day.

    However, AI could also undermine the role human drone operators play in challenging recommendations by machines. Some researchers think that humans have a tendency to trust whatever computers say.

    ‘Loitering munitions’

    Militaries engaged in conflicts are increasingly making use of small, cheap aerial drones that can detect and crash into targets. These “loitering munitions” (so named because they are designed to hover over a battlefield) feature varying degrees of autonomy.

    As I’ve argued in research co-authored with security researcher Ingvild Bode, the dynamics of the Ukraine war and other recent conflicts in which these munitions have been widely used raises concerns about the quality of control exerted by human operators.

    Ground-based military robots armed with weapons and designed for use on the battlefield might call to mind the relentless Terminators, and weaponised aerial drones may, in time, come to resemble the franchise’s airborne “hunter-killers”. But these technologies don’t hate us as Skynet does, and neither are they “super-intelligent”.

    However, it’s crucially important that human operators continue to exercise agency and meaningful control over machine systems.

    Arguably, The Terminator’s greatest legacy has been to distort how we collectively think and speak about AI. This matters now more than ever, because of how central these technologies have become to the strategic competition for global power and influence between the US, China and Russia.

    The entire international community, from superpowers such as China and the US to smaller countries, needs to find the political will to cooperate – and to manage the ethical and legal challenges posed by the military applications of AI during this time of geopolitical upheaval. How nations navigate these challenges will determine whether we can avoid the dystopian future so vividly imagined in The Terminator – even if we don’t see time travelling cyborgs any time soon.

    Tom F.A Watts receives funding from the Leverhulme Trust Early Career Research Fellowship scheme.

    ref. The Terminator at 40: this sci-fi ‘B-movie’ still shapes how we view the threat of AI – https://theconversation.com/the-terminator-at-40-this-sci-fi-b-movie-still-shapes-how-we-view-the-threat-of-ai-236564

    MIL OSI – Global Reports

  • MIL-OSI Global: An Indian village went from hunting Amur falcons to being their biggest protectors. Here’s how conservationists can harness the power of persuasion

    Source: The Conversation – UK – By Diogo Veríssimo, Research Fellow in Conservation Marketing, University of Oxford

    An Amur falcon feeds on flying insects as it migrates across Nagaland, India. Greeneries/Shutterstock

    Wildlife conservation is an exercise in human persuasion. It may seem counterintuitive that we hold the keys to the survival of wildlife, but 98% of all threatened species are threatened exclusively by human activities such as pollution, invasive species or habitat loss.

    Influencing human behaviour to benefit nature is hard, but it can be done. In the case of the Amur falcon, we found that legislation and enforcement were successful at stopping hunting of this migratory raptor and maintaining changes in hunting practices. But the key to success involved fostering local pride in the bird, alongside providing economic incentives.

    The Amur falcon is a bird the size of an apple with a yearly commute from Siberia to Africa and back – the equivalent in total to six trips from London to New York. One key stop in the bird’s journey is the forests of Nagaland in north-east India.

    Since its construction in 2000, an artificial reservoir over Nagaland’s Doyang river has attracted vast numbers of winged termites – in turn increasing the number of Amur falcons stopping to feed on these insects. As the numbers of falcons rose, they became very easy targets for local hunters, for whom wildlife hunting is an integral part of their traditional culture. These birds were hunted for food as well as traded in local markets, earning significant seasonal revenue for the hunters.

    Fast-forward to November 2012. The scale of the hunt at Doyang reservoir, particularly in Pangti village, came to the attention of conservationists like us, who estimated that between 120,000 and 140,000 birds (about 10% of the global adult population) were being caught in only ten days. These birds stopped at the Doyang reservoir to fatten up before their migration to Africa, but were trapped using fishing nets hung across trees.

    A global media campaign was spearheaded by the environmental charity Conservation India. A hard-hitting short film, The Amur Falcon Massacre, was shared online to show the true horror and scale of this hunt. Conservationists tried to leverage India’s membership of the Convention on Migratory Species, and such pressure led to the Indian government making a global commitment to protect species including the Amur falcon.

    The government took swift action. It warned Pangti villagers that unless the hunting stopped, it would cut off funding for crucial development projects. Faced with this threat, the village council imposed a ban on hunting falcons in 2013 – without consulting the broader community.

    That decision was deeply unpopular with local villagers. Falcon hunting had been an important source of income, and many villagers were resistant to the ban. Though the hunting stopped, local trust in the council leadership was low because the ban was seen as authoritarian.

    However, the decision was backed by financial incentives and environmental outreach from charitable organisations and the government’s forest department. This helped reframe the falcons as “honoured guests”, and to connect local people more empathetically with the birds. Hunting was actively discouraged; eventually, it ceased altogether.

    An Amur falcon (Falco amurensis) in flight.
    Touhid biplob/Wikimedia, CC BY-NC-ND

    By 2017, a sense of pride began to grow within the community. Awards and recognition from external bodies, including the Indian government, for Pangti’s conservation efforts helped create a positive image of the village worldwide. The community’s emotional bond with the falcons strengthened. Villagers even held prayers for satellite-tagged falcons before releasing them. Falcon conservation became a symbol of local identity and pride, which helped overcome the initial resistance to the hunting ban.

    This allowed conservation measures to expand. The community outlawed air guns to prevent the hunting of small birds, and extended the hunting ban to cover all wildlife for six months of the year. These actions showed the community wasn’t just enforcing government rules; it was actively creating new conservation initiatives of its own.

    The power of persuasion

    Human actions drive biodiversity outcomes. These can be destructive, like poaching, or protective, like community-led conservation. The end of the indiscriminate killing of the Amur falcon in Nagaland highlights that, while behaviour change can take place in a short period, maintaining it over the long term is often much more challenging.

    For instance, while the initial ban was effective in quickly eliminating hunting, the shift from resistance to pride in falcon conservation took years to fully develop. Sustaining this change has required continuous community engagement and building of pride in the species.

    Visual storytelling – in this case, a film widely shared on social media – can also play a powerful role in turning local issues into global ones. The international attention brought to the unsustainable hunting of the Amur falcon was instrumental in prompting government action. This shows how global media exposure can elevate a local conservation issue, creating a sense of urgency that compels authorities to act.

    However, while media campaigns can quickly drive policy changes, they don’t always lead to lasting behaviour change. Campaigns that rely on shock and urgency may alienate local communities, creating resistance.

    Sustainable behaviour change requires building trust, understanding local values, and supporting community leadership. True change happens when people feel empowered and see benefits from their actions – not simply when they feel pressured to comply.



    Don’t have time to read about climate change as much as you’d like?

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    Sahila Kudalkar received funding from the Inlaks Shivdasani Foundation for research on Amur falcon conservation in Nagaland.

    Diogo Veríssimo 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. An Indian village went from hunting Amur falcons to being their biggest protectors. Here’s how conservationists can harness the power of persuasion – https://theconversation.com/an-indian-village-went-from-hunting-amur-falcons-to-being-their-biggest-protectors-heres-how-conservationists-can-harness-the-power-of-persuasion-239856

    MIL OSI – Global Reports

  • MIL-OSI Europe: Encyclical Letter “Dilexit nos” of the Holy Father Francis on the human and divine love of the heart of Jesus Christ

    Source: The Holy See

    Encyclical Letter “Dilexit nos” of the Holy Father Francis on the human and divine love of the heart of Jesus Christ, 24.10.2024
    ENCYCLICAL LETTER
    DILEXIT NOS
    OF THE HOLY FATHER
    FRANCIS
    ON THE HUMAN AND DIVINE LOVE
    OF THE HEART OF JESUS CHRIST
    1. HE LOVED US”, Saint Paul says of Christ (cf.Rom8:37), in order to make us realize that nothing can ever “separate us” from that love (Rom8:39).Paul could say this with certainty because Jesus himself had told his disciples, “I have loved you” (Jn15:9, 12).Even now, the Lord says to us, “I have called you friends” (Jn15:15).His open heart has gone before us and waits for us, unconditionally, asking only to offer us his love and friendship.For “he loved us first” (cf.1 Jn4:10).Because of Jesus, “we have come to know and believe in the love that God has for us” (1 Jn4:16).
    CHAPTER ONE
    THE IMPORTANCE OF THE HEART
    2. The symbol of the heart has often been used to express the love of Jesus Christ.Some have questioned whether this symbol is still meaningful today.Yet living as we do in an age of superficiality, rushing frenetically from one thing to another without really knowing why, and ending up as insatiable consumers and slaves to the mechanisms of a market unconcerned about the deeper meaning of our lives, all of us need to rediscover the importance of the heart.[1]
    WHAT DO WE MEAN BY “THE HEART”?
    3. In classical Greek, the wordkardíadenotes the inmost part of human beings, animals and plants.For Homer, it indicates not only the centre of the body, but also the human soul and spirit.In the Iliad, thoughts and feelings proceed from the heart and are closely bound one to another.[2]The heart appears as the locus of desire and the place where important decisions take shape.[3]In Plato, the heart serves, as it were, to unite the rational and instinctive aspects of the person, since the impulses of both the higher faculties and the passions were thought to pass through the veins that converge in the heart.[4]From ancient times, then, there has been an appreciation of the fact that human beings are not simply a sum of different skills, but a unity of body and soul with a coordinating centre that provides a backdrop of meaning and direction to all that a person experiences.
    4. The Bible tells us that, “the Word of God is living and active… it is able to judge the thoughts and intentions of the heart” (Heb4:12).In this way, it speaks to us of the heart as a core that lies hidden bene ath all outward appearances, even beneath the superficial thoughts that can lead us astray.The disciples of Emmaus, on their mysterious journey in the company of the risen Christ, experienced a moment of anguish, confusion, despair and disappointment.Yet, beyond and in spite of this, something was happening deep within them: “Were not our hearts burning within us while he was talking to us on the road?” (Lk 24:32).
    5. The heart is also the locus of sincerity, where deceit and disguise have no place.It usually indicates our true intentions, what we really think, believe and desire, the “secrets” that we tell no one: in a word, the naked truth about ourselves.It is the part of us that is neither appearance or illusion, but is instead authentic, real, entirely “who we are”.That is why Samson, who kept from Delilah the secret of his strength, was asked by her, “How can you say, ‘I love you’, when your heart is not with me?” (Judg16:15).Only when Samson opened his heart to her, did she realize “that he had told her his whole secret” (Judg16:18).
    6. This interior reality of each person is frequently concealed behind a great deal of “foliage”, which makes it difficult for us not only to understand ourselves, but even more to know others: “The heart is devious above all else; it is perverse, who can understand it?” (Jer17:9).We can understand, then, the advice of the Book of Proverbs: “Keep your heart with all vigilance, for from it flow the springs of life; put away from you crooked speech” (4:23-24).Mere appearances, dishonesty and deception harm and pervert the heart.Despite our every attempt to appear as something we are not, our heart is the ultimate judge, not of what we show or hide from others, but of who we truly are.It is the basis for any sound life project; nothing worthwhile can be undertaken apart from the heart.False appearances and untruths ultimately leave us empty-handed.
    7. As an illustration of this, I would repeat a story I have already told on another occasion.“For the carnival, when we were children, my grandmother would make a pastry using a very thin batter.When she dropped the strips of batter into the oil, they would expand, but then, when we bit into them, they were empty inside.In the dialect we spoke, those cookies were called ‘lies’…My grandmother explained why: ‘Like lies, they look big, but are empty inside; they are false, unreal’”.[5]
    8. Instead of running after superficial satisfactions and playing a role for the benefit of others, we would do better to think about the really important questions in life.Who am I, really?What am I looking for?What direction do I want to give to my life, my decisions and my actions?Why and for what purpose am I in this world?How do I want to look back on my life once it ends?What meaning do I want to give to all my experiences?Who do I want to be for others?Who am I for God?All these questions lead us back to the heart.
    RETURNING TO THE HEART
    9. In this “liquid” world of ours, we need to start speaking once more about the heart and thinking about this place where every person, of every class and condition, creates a synthesis, where they encounter the radical source of their strengths, convictions, passions and decisions.Yet, we find ourselves immersed in societies of serial consumers who live from day to day, dominated by the hectic pace and bombarded by technology, lacking in the patience needed to engage in the processes that an interior life by its very nature requires.In contemporary society, people “risk losing their centre, the centre of their very selves”.[6]“Indeed, the men and women of our time often find themselves confused and torn apart, almost bereft of an inner principle that can create unity and harmony in their lives and actions.Models of behaviour that, sadly, are now widespread exaggerate our rational-technological dimension or, on the contrary, that of our instincts”.[7]No room is left for the heart.
    10. The issues raised by today’s liquid society are much discussed, but this depreciation of the deep core of our humanity – the heart – has a much longer history.We find it already present in Hellenic and pre-Christian rationalism, in post-Christian idealism and in materialism in its various guises.The heart has been ignored in anthropology, and the great philosophical tradition finds it a foreign notion, preferring other concepts such as reason, will or freedom.The very meaning of the term is imprecise and hard to situate within our human experience.Perhaps this is due to the difficulty of treating it as a “clear and distinct idea”, or because it entails the question of self-understanding, where the deepest part of us is also that which is least known.Even encountering others does not necessarily prove to be a way of encountering ourselves, inasmuch as our thought patterns are dominated by an unhealthy individualism.Many people feel safer constructing their systems of thought in the more readily controllable domain of intelligence and will.The failure to make room for the heart, as distinct from our human powers and passions viewed in isolation from one another, has resulted in a stunting of the idea of a personal centre, in which love, in the end, is the one reality that can unify all the others.
    11. If we devalue the heart, we also devalue what it means to speak from the heart, to act with the heart, to cultivate and heal the heart.If we fail to appreciate the specificity of the heart, we miss the messages that the mind alone cannot communicate; we miss out on the richness of our encounters with others; we miss out on poetry.We also lose track of history and our own past, since our real personal history is built with the heart.At the end of our lives, that alone will matter.
    12. It must be said, then, that we have a heart, a heart that coexists with other hearts that help to make it a “Thou”.Since we cannot develop this theme at length, we will take a character from one of Dostoevsky’s novels, Nikolai Stavrogin.[8]Romano Guardini argues that Stavrogin is the very embodiment of evil, because his chief trait is his heartlessness: “Stavrogin has no heart, hence his mind is cold and empty and his body sunken in bestial sloth and sensuality.He has no heart, hence he can draw close to no one and no one can ever truly draw close to him.For only the heart creates intimacy, true closeness between two persons.Only the heart is able to welcome and offer hospitality.Intimacy is the proper activity and the domain of the heart.Stavrogin is always infinitely distant, even from himself, because a man can enter into himself only with the heart, not with the mind.It is not in a man’s power to enter into his own interiority with the mind.Hence, if the heart is not alive, man remains a stranger to himself”.[9]
    13. All our actions need to be put under the “political rule” of the heart.In this way, our aggressiveness and obsessive desires will find rest in the greater good that the heart proposes and in the power of the heart to resist evil.The mind and the will are put at the service of the greater good by sensing and savouring truths, rather than seeking to master them as the sciences tend to do.The will desires the greater good that the heart recognizes, while the imagination and emotions are themselves guided by the beating of the heart.
    14. It could be said, then, that I am my heart, for my heart is what sets me apart, shapes my spiritual identity and puts me in communion with other people.The algorithms operating in the digital world show that our thoughts and will are much more “uniform” than we had previously thought.They are easily predictable and thus capable of being manipulated.That is not the case with the heart.
    15. The word “heart” proves its value for philosophy and theology in their efforts to reach an integral synthesis.Nor can its meaning be exhausted by biology, psychology, anthropology or any other science.It is one of those primordial words that “describe realities belonging to man precisely in so far as he is one whole (as a corporeo-spiritual person)”.[10]It follows that biologists are not being more “realistic” when they discuss the heart, since they see only one aspect of it; the whole is not less real, but even more real.Nor can abstract language ever acquire the same concrete and integrative meaning.The word “heart” evokes the inmost core of our person, and thus it enables us to understand ourselves in our integrity and not merely under one isolated aspect.
    16. This unique power of the heart also helps us to understand why, when we grasp a reality with our heart, we know it better and more fully.This inevitably leads us to the love of which the heart is capable, for “the inmost core of reality is love”.[11]For Heidegger, as interpreted by one contemporary thinker, philosophy does not begin with a simple concept or certainty, but with a shock: “Thought must be provoked before it begins to work with concepts or while it works with them.Without deep emotion, thought cannot begin.The first mental image would thus be goose bumps.What first stirs one to think and question is deep emotion.Philosophy always takes place in a basic mood (Stimmung)”.[12]That is where the heart comes in, since it “houses the states of mind and functions as a ‘keeper of the state of mind’.The ‘heart’ listens in a non-metaphoric way to ‘the silent voice’ of being, allowing itself to be tempered and determined by it”.[13]
    THE HEART UNITES THE FRAGMENTS
    17. At the same time, the heart makes all authentic bonding possible, since a relationship not shaped by the heart is incapable of overcoming the fragmentation caused by individualism.Two monads may approach one another, but they will never truly connect.A society dominated by narcissism and self-centredness will increasingly become “heartless”.This will lead in turn to the “loss of desire”, since as other persons disappear from the horizon we find ourselves trapped within walls of our own making, no longer capable of healthy relationships.[14]As a result, we also become incapable of openness to God.As Heidegger puts it, to be open to the divine we need to build a “guest house”.[15]
    18. We see, then, that in the heart of each person there is a mysterious connection between self-knowledge and openness to others, between the encounter with one’s personal uniqueness and the willingness to give oneself to others.We become ourselves only to the extent that we acquire the ability to acknowledge others, while only those who can acknowledge and accept themselves are then able to encounter others.
    19. The heart is also capable of unifying and harmonizing our personal history, which may seem hopelessly fragmented, yet is the place where everything can make sense.The Gospel tells us this in speaking of Our Lady, who saw things with the heart.She was able to dialogue with the things she experienced by pondering them in her heart, treasuring their memory and viewing them in a greater perspective.The best expression of how the heart thinks is found in the two passages in Saint Luke’s Gospel that speak to us of how Mary “treasured (synetérei) all these things and pondered (symbállousa) them in her heart” (cf.Lk2:19 and 51).The Greek verbsymbállein, “ponder”, evokes the image of putting two things together (“symbols”) in one’s mind and reflecting on them, in a dialogue with oneself.In Luke 2:51, the verb used isdietérei, which has the sense of “keep”.What Mary “kept” was not only her memory of what she had seen and heard, but also those aspects of it that she did not yet understand; these nonetheless remained present and alive in her memory, waiting to be “put together” in her heart.
    20. In this age of artificial intelligence, we cannot forget that poetry and love are necessary to save our humanity.No algorithm will ever be able to capture, for example, the nostalgia that all of us feel, whatever our age, and wherever we live, when we recall how we first used a fork to seal the edges of the pies that we helped our mothers or grandmothers to make at home. It was a moment of culinary apprenticeship, somewhere between child-play and adulthood, when we first felt responsible for working and helping one another.Along with the fork, I could also mention thousands of other little things that are a precious part of everyone’s life: a smile we elicited by telling a joke, a picture we sketched in the light of a window, the first game of soccer we played with a rag ball, the worms we collected in a shoebox, a flower we pressed in the pages of a book, our concern for a fledgling bird fallen from its nest, a wish we made in plucking a daisy.All these little things, ordinary in themselves yet extraordinary for us, can never be captured by algorithms.The fork, the joke, the window, the ball, the shoebox, the book, the bird, the flower: all of these live on as precious memories “kept” deep in our heart.
    21. This profound core, present in every man and woman, is not that of the soul, but of the entire person in his or her unique psychosomatic identity.Everything finds its unity in the heart, which can be the dwelling-place of love in all its spiritual, psychic and even physical dimensions.In a word, if love reigns in our heart, we become, in a complete and luminous way, the persons we are meant to be, for every human being is created above all else for love.In the deepest fibre of our being, we were made to love and to be loved.
    22. For this reason, when we witness the outbreak of new wars, with the complicity, tolerance or indifference of other countries, or petty power struggles over partisan interests, we may be tempted to conclude that our world is losing its heart.We need only to see and listen to the elderly women – from both sides – who are at the mercy of these devastating conflicts.It is heart-breaking to see them mourning for their murdered grandchildren, or longing to die themselves after losing the homes where they spent their entire lives.Those women, who were often pillars of strength and resilience amid life’s difficulties and hardships, now, at the end of their days, are experiencing, in place of a well-earned rest, only anguish, fear and outrage.Casting the blame on others does not resolve these shameful and tragic situations.To see these elderly women weep, and not feel that this is something intolerable, is a sign of a world that has grown heartless.
    23. Whenever a person thinks, questions and reflects on his or her true identity, strives to understand the deeper questions of life and to seek God, or experiences the thrill of catching a glimpse of truth, it leads to the realization that our fulfilment as human beings is found in love.In loving, we sense that we come to know the purpose and goal of our existence in this world.Everything comes together in a state of coherence and harmony.It follows that, in contemplating the meaning of our lives, perhaps the most decisive question we can ask is, “Do I have a heart?”
    FIRE
    24. All that we have said has implications for the spiritual life.For example, the theology underlying the Spiritual Exercises of Saint Ignatius Loyola is based on “affection” (affectus).The structure of the Exercises assumes a firm and heartfelt desire to “rearrange” one’s life, a desire that in turn provides the strength and the wherewithal to achieve that goal.The rules and the compositions of place that Ignatius furnishes are in the service of something much more important, namely, the mystery of the human heart.Michel de Certeau shows how the “movements” of which Ignatius speaks are the “inbreaking” of God’s desire and the desire of our own heart amid the orderly progression of the meditations.Something unexpected and hitherto unknown starts to speak in our heart, breaking through our superficial knowledge and calling it into question.This is the start of a new process of “setting our life in order”, beginning with the heart.It is not about intellectual concepts that need to be put into practice in our daily lives, as if affectivity and practice were merely the effects of – and dependent upon – the data of knowledge.[16]
    25. Where the thinking of the philosopher halts, there the heart of the believer presses on in love and adoration, in pleading for forgiveness and in willingness to serve in whatever place the Lord allows us to choose, in order to follow in his footsteps.At that point, we realize that in God’s eyes we are a “Thou”, and for that very reason we can be an “I”.Indeed, only the Lord offers to treat each one of us as a “Thou”, always and forever.Accepting his friendship is a matter of the heart; it is what constitutes us as persons in the fullest sense of that word.
    26. Saint Bonaventure tells us that in the end we should not pray for light, but for “raging fire”.[17]He teaches that, “faith is in the intellect, in such a way as to provoke affection.In this sense, for example, the knowledge that Christ died for us does not remain knowledge, but necessarily becomes affection, love”.[18]Along the same lines, Saint John Henry Newman took as his motto the phraseCor ad cor loquitur, since, beyond all our thoughts and ideas, the Lord saves us by speaking to our hearts from his Sacred Heart.This realization led him, the distinguished intellectual, to recognize that his deepest encounter with himself and with the Lord came not from his reading or reflection, but from his prayerful dialogue, heart to heart, with Christ, alive and present.It was in the Eucharist that Newman encountered the living heart of Jesus, capable of setting us free, giving meaning to each moment of our lives, and bestowing true peace: “O most Sacred, most loving Heart of Jesus, Thou art concealed in the Holy Eucharist, and Thou beatest for us still…I worship Thee then with all my best love and awe, with my fervent affection, with my most subdued, most resolved will.O my God, when Thou dost condescend to suffer me to receive Thee, to eat and drink Thee, and Thou for a while takest up Thy abode within me, O make my heart beat with Thy Heart.Purify it of all that is earthly, all that is proud and sensual, all that is hard and cruel, of all perversity, of all disorder, of all deadness.So fill it with Thee, that neither the events of the day nor the circumstances of the time may have power to ruffle it, but that in Thy love and Thy fear it may have peace”.[19]
    27. Before the heart of Jesus, living and present, our mind, enlightened by the Spirit, grows in the understanding of his words and our will is moved to put them into practice.This could easily remain on the level of a kind of self-reliant moralism.Hearing and tasting the Lord, and paying him due honour, however, is a matter of the heart. Only the heart is capable of setting our other powers and passions, and our entire person, in a stance of reverence and loving obedience before the Lord.
    THE WORLD CAN CHANGE, BEGINNING WITH THE HEART
    28. It is only by starting from the heart that our communities will succeed in uniting and reconciling differing minds and wills, so that the Spirit can guide us in unity as brothers and sisters.Reconciliation and peace are also born of the heart.The heart of Christ is “ecstasy”, openness, gift and encounter.In that heart, we learn to relate to one another in wholesome and happy ways, and to build up in this world God’s kingdom of love and justice.Our hearts, united with the heart of Christ, are capable of working this social miracle.
    29. Taking the heart seriously, then, has consequences for society as a whole.The Second Vatican Council teaches that, “every one of us needs a change of heart; we must set our gaze on the whole world and look to those tasks we can all perform together in order to bring about the betterment of our race”.[20]For “the imbalances affecting the world today are in fact a symptom of a deeper imbalance rooted in the human heart”.[21]In pondering the tragedies afflicting our world, the Council urges us to return to the heart.It explains that human beings “by their interior life, transcend the entire material universe; they experience this deep interiority when they enter into their own heart, where God, who probes the heart, awaits them, and where they decide their own destiny in the sight of God”.[22]
    30. This in no way implies an undue reliance on our own abilities.Let us never forget that our hearts are not self-sufficient, but frail and wounded.They possess an ontological dignity, yet at the same time must seek an ever more dignified life.[23]The Second Vatican Council points out that “the ferment of the Gospel has aroused and continues to arouse in human hearts an unquenchable thirst for human dignity”.[24]Yet to live in accordance with this dignity, it is not enough to know the Gospel or to carry out mechanically its demands.We need the help of God’s love.Let us turn, then, to the heart of Christ, that core of his being, which is a blazing furnace of divine and human love and the most sublime fulfilment to which humanity can aspire.There, in that heart, we truly come at last to know ourselves and we learn how to love.
    31. In the end, that Sacred Heart is the unifying principle of all reality, since “Christ is the heart of the world, and the paschal mystery of his death and resurrection is the centre of history, which, because of him, is a history of salvation”.[25]All creatures “are moving forward with us and through us towards a common point of arrival, which is God, in that transcendent fullness where the risen Christ embraces and illumines all things”.[26]In the presence of the heart of Christ, I once more ask the Lord to have mercy on this suffering world in which he chose to dwell as one of us.May he pour out the treasures of his light and love, so that our world, which presses forward despite wars, socio-economic disparities and uses of technology that threaten our humanity, may regain the most important and necessary thing of all: its heart.
    CHAPTER TWO
    ACTIONS AND WORDS OF LOVE
    32. The heart of Christ, as the symbol of the deepest and most personal source of his love for us, is the very core of the initial preaching of the Gospel.It stands at the origin of our faith, as the wellspring that refreshes and enlivens our Christian beliefs.
    ACTIONS THAT REFLECT THE HEART
    33. Christ showed the depth of his love for us not by lengthy explanations but by concrete actions.By examining his interactions with others, we can come to realize how he treats each one of us, even though at times this may be difficult to see.Let us now turn to the place where our faith can encounter this truth: the word of God.
    34. The Gospel tells us that Jesus “came to his own” (cf.Jn1:11).Those words refer to us, for the Lord does not treat us as strangers but as a possession that he watches over and cherishes.He treats us truly as “his own”.This does not mean that we are his slaves, something that he himself denies: “I do not call you servants” (Jn15:15).Rather, it refers to the sense of mutual belonging typical of friends.Jesus came to meet us, bridging all distances; he became as close to us as the simplest, everyday realities of our lives.Indeed, he has another name, “Emmanuel”, which means “God with us”, God as part of our lives, God as living in our midst.The Son of God became incarnate and “emptied himself, taking the form of a slave” (Phil2:7).
    35. This becomes clear when we see Jesus at work.He seeks people out, approaches them, ever open to an encounter with them.We see it when he stops to converse with the Samaritan woman at the well where she went to draw water (cf.Jn4:5-7).We see it when, in the darkness of night, he meets Nicodemus, who feared to be seen in his presence (cf.Jn3:1-2).We marvel when he allows his feet to be washed by a prostitute (cf.Lk7:36-50), when he says to the woman caught in adultery, “Neither do I condemn you” (Jn8:11), or again when he chides the disciples for their indifference and quietly asks the blind man on the roadside, “What do you want me to do for you?” (Mk10:51).Christ shows that God is closeness, compassion and tender love.
    36. Whenever Jesus healed someone, he preferred to do it, not from a distance but in close proximity: “He stretched out his hand and touched him” (Mt8:3).“He touched her hand” (Mt8:15).“He touched their eyes” (Mt9:29).Once he even stopped to cure a deaf man with his own saliva (cf.Mk7:33), as a mother would do, so that people would not think of him as removed from their lives.“The Lord knows the fine science of the caress.In his compassion, God does not love us with words; he comes forth to meet us and, by his closeness, he shows us the depth of his tender love”.[27]
    37. If we find it hard to trust others because we have been hurt by lies, injuries and disappointments, the Lord whispers in our ear: “Take heart, son!” (Mt9:2), “Take heart, daughter!” (Mt9:22).He encourages us to overcome our fear and to realize that, with him at our side, we have nothing to lose.To Peter, in his fright, “Jesus immediately reached out his hand and caught him”, saying, “You of little faith, why did you doubt?” (Mt14:31).Nor should you be afraid.Let him draw near and sit at your side.There may be many people we distrust, but not him.Do not hesitate because of your sins.Keep in mind that many sinners “came and sat with him” (Mt9:10), yet Jesus was scandalized by none of them.It was the religious élite that complained and treated him as “a glutton and a drunkard, a friend of tax collectors and sinners” (Mt11:19).When the Pharisees criticized him for his closeness to people deemed base or sinful, Jesus replied, “I desire mercy, not sacrifice” (Mt9:13).
    38. That same Jesus is now waiting for you to give him the chance to bring light to your life, to raise you up and to fill you with his strength.Before his death, he assured his disciples, “I will not leave you orphaned; I am coming to you.In a little while the world will no longer see me, but you will see me” (Jn14:18-19).Jesus always finds a way to be present in your life, so that you can encounter him.
    JESUS’ GAZE
    39. The Gospel tells us that a rich man came up to Jesus, full of idealism yet lacking in the strength needed to change his life.Jesus then “looked at him” (Mk10:21).Can you imagine that moment, that encounter between his eyes and those of Jesus?If Jesus calls you and summons you for a mission, he first looks at you, plumbs the depths of your heart and, knowing everything about you, fixes his gaze upon you.So it was when, “as he walked by the Sea of Galilee, he saw two brothers… and as he went from there, he saw two other brothers” (Mt4:18, 21).
    40. Many a page of the Gospel illustrates how attentive Jesus was to individuals and above all to their problems and needs.We are told that, “when he saw the crowds, he had compassion for them, because they were harassed and helpless” (Mt9:36).Whenever we feel that everyone ignores us, that no one cares what becomes of us, that we are of no importance to anyone, he remains concerned for us.To Nathanael, standing apart and busy about his own affairs, he could say, “I saw you under the fig tree before Philip called you” (Jn1:48).
    41. Precisely out of concern for us, Jesus knows every one of our good intentions and small acts of charity.The Gospel tells us that once he “saw a poor widow put in two small copper coins” in the Temple treasury (Lk21:2) and immediately brought it to the attention of his disciples.Jesus thus appreciates the good that he sees in us. When the centurion approached him with complete confidence, “Jesus listened to him and was amazed” (Mt8:10).How reassuring it is to know that, even if others are not aware of our good intentions or actions, Jesus sees them and regards them highly.
    42. In his humanity, Jesus learned this from Mary, his mother.Our Lady carefully pondered the things she had experienced; she “treasured them… in her heart” (Lk2:19, 51) and, with Saint Joseph, she taught Jesus from his earliest years to be attentive in this same way.
    JESUS’ WORDS
    43. Although the Scriptures preserve Jesus’ words, ever alive and timely, there are moments when he speaks to us inwardly, calls us and leads us to a better place.That better place is his heart.There he invites us to find fresh strength and peace: “Come to me, all who are weary and are carrying heavy burdens, and I will give you rest” (Mt11:28).In this sense, he could say to his disciples, “Abide in me” (Jn15:4).
    44. Jesus’ words show that his holiness did not exclude deep emotions.On various occasions, he demonstrated a love that was both passionate and compassionate.He could be deeply moved and grieved, even to the point of shedding tears.It is clear that Jesus was not indifferent to the daily cares and concerns of people, such as their weariness or hunger: “I have compassion for this crowd… they have nothing to eat… they will faint on the way, and some of them have come from a great distance” (Mk8:2-3).
    45. The Gospel makes no secret of Jesus’ love for Jerusalem: “As he came near and saw the city, he wept over it” (Lk19:41).He then voiced the deepest desire of his heart: “If you had only recognized on this day the things that make for peace” (Lk19:42).The evangelists, while at times showing him in his power and glory, also portray his profound emotions in the face of death and the grief felt by his friends.Before recounting how Jesus, standing before the tomb of Lazarus, “began to weep” (Jn11:35), the Gospel observes that, “Jesus loved Martha and her sister and Lazarus” (Jn11:5) and that, seeing Mary and those who were with her weeping, “he was greatly disturbed in spirit and deeply moved” (Jn11:33).The Gospel account leaves no doubt that his tears were genuine, the sign of inner turmoil.Nor do the Gospels attempt to conceal Jesus’ anguish over his impending violent death at the hands of those whom he had loved so greatly: he “began to be distressed and agitated” (Mk14:33), even to the point of crying out, “I am deeply grieved, even to death” (Mk14:34).This inner turmoil finds its most powerful expression in his cry from the cross: “My God, my God, why have you forsaken me?” (Mk15:34).
    46. At first glance, all this may smack of pious sentimentalism.Yet it is supremely serious and of decisive importance, and finds its most sublime expression in Christ crucified.The cross is Jesus’ most eloquent word of love.A word that is not shallow, sentimental or merely edifying.It is love, sheer love.That is why Saint Paul, struggling to find the right words to describe his relationship with Christ, could speak of “the Son of God, who loved me and gave himself for me” (Gal2:20).This was Paul’s deepest conviction: the knowledge that he was loved.Christ’s self-offering on the cross became the driving force in Paul’s life, yet it only made sense to him because he knew that something even greater lay behind it: the fact that “he loved me”.At a time when many were seeking salvation, prosperity or security elsewhere, Paul, moved by the Spirit, was able to see farther and to marvel at the greatest and most essential thing of all: “Christ loved me”.
    47. Now, after considering Christ and seeing how his actions and words grant us insight into his heart, let us turn to the Church’s reflection on the holy mystery of the Lord’s Sacred Heart.
    CHAPTER THREE
    THIS IS THE HEART THAT HAS LOVED SO GREATLY
    48. Devotion to the heart of Christ is not the veneration of a single organ apart from the Person of Jesus.What we contemplate and adore is the whole Jesus Christ, the Son of God made man, represented by an image that accentuates his heart.That heart of flesh is seen as the privileged sign of the inmost being of the incarnate Son and his love, both divine and human.More than any other part of his body, the heart of Jesus is “the natural sign and symbol of his boundless love”.[28]
    WORSHIPING CHRIST
    49. It is essential to realize that our relationship to the Person of Jesus Christ is one of friendship and adoration, drawn by the love represented under the image of his heart.We venerate that image, yet our worship is directed solely to the living Christ, in his divinity and his plenary humanity, so that we may be embraced by his human and divine love.
    50. Whatever the image employed, it is clear that the living heart of Christ – not its representation – is the object of our worship, for it is part of his holy risen body, which is inseparable from the Son of God who assumed that body forever.We worship it because it is “the heart of the Person of the Word, to whom it is inseparably united”.[29]Nor do we worship it for its own sake, but because with this heart the incarnate Son is alive, loves us and receives our love in return.Any act of love or worship of his heart is thus “really and truly given to Christ himself”,[30]since it spontaneously refers back to him and is “a symbol and a tender image of the infinite love of Jesus Christ”.[31]
    51. For this reason, it should never be imagined that this devotion may distract or separate us from Jesus and his love.In a natural and direct way, it points us to him and to him alone, who calls us to a precious friendship marked by dialogue, affection, trust and adoration.The Christ we see depicted with a pierced and burning heart is the same Christ who, for love of us, was born in Bethlehem, passed through Galilee healing the sick, embracing sinners and showing mercy.The same Christ who loved us to the very end, opening wide his arms on the cross, who then rose from the dead and now lives among us in glory.
    VENERATING HIS IMAGE
    52. While the image of Christ and his heart is not in itself an object of worship, neither is it simply one among many other possible images.It was not devised at a desk or designed by an artist; it is “no imaginary symbol, but a real symbol which represents the centre, the source from which salvation flowed for all humanity”.[32]
    53. Universal human experience has made the image of the heart something unique.Indeed, throughout history and in different parts of the world, it has become a symbol of personal intimacy, affection, emotional attachment and capacity for love.Transcending all scientific explanations, a hand placed on the heart of a friend expresses special affection: when two persons fall in love and draw close to one another, their hearts beat faster; when we are abandoned or deceived by someone we love, our hearts sink.So too, when we want to say something deeply personal, we often say that we are speaking “from the heart”.The language of poetry reflects the power of these experiences.In the course of history, the heart has taken on unique symbolic value that is more than merely conventional.
    54. It is understandable, then, that the Church has chosen the image of the heart to represent the human and divine love of Jesus Christ and the inmost core of his Person.Yet, while the depiction of a heart afire may be an eloquent symbol of the burning love of Jesus Christ, it is important that this heart not be represented apart from him.In this way, his summons to a personal relationship of encounter and dialogue will become all the more meaningful.[33]The venerable image portraying Christ holding out his loving heart also shows him looking directly at us, inviting us to encounter, dialogue and trust; it shows his strong hands capable of supporting us and his lips that speak personally to each of us.
    55. The heart, too, has the advantage of being immediately recognizable as the profound unifying centre of the body, an expression of the totality of the person, unlike other individual organs.As a part that stands for the whole, we could easily misinterpret it, were we to contemplate it apart from the Lord himself.The image of the heart should lead us to contemplate Christ in all the beauty and richness of his humanity and divinity.
    56. Whatever particular aesthetic qualities we may ascribe to various portrayals of Christ’s heart when we pray before them, it is not the case that “something is sought from them or that blind trust is put in images as once was done by the Gentiles”.Rather, “through these images that we kiss, and before which we kneel and uncover our heads, we are adoring Christ”.[34]
    57. Certain of these representations may indeed strike us as tasteless and not particularly conducive to affection or prayer.Yet this is of little importance, since they are only invitations to prayer, and, to cite an Eastern proverb, we should not limit our gaze to the finger that points us to the moon.Whereas the Eucharist is a real presence to be worshiped, sacred images, albeit blessed, point beyond themselves, inviting us to lift up our hearts and to unite them to the heart of the living Christ.The image we venerate thus serves as a summons to make room for an encounter with Christ, and to worship him in whatever way we wish to picture him.Standing before the image, we stand before Christ, and in his presence, “love pauses, contemplates mystery, and enjoys it in silence”.[35]
    58. At the same time, we must never forget that the image of the heart speaks to us of the flesh and of earthly realities.In this way, it points us to the God who wished to become one of us, a part of our history, and a companion on our earthly journey.A more abstract or stylized form of devotion would not necessarily be more faithful to the Gospel, for in this eloquent and tangible sign we see how God willed to reveal himself and to draw close to us.
    A LOVE THAT IS TANGIBLE
    59. On the other hand, love and the human heart do not always go together, since hatred, indifference and selfishness can also reign in our hearts.Yet we cannot attain our fulfilment as human beings unless we open our hearts to others; only through love do we become fully ourselves.The deepest part of us, created for love, will fulfil God’s plan only if we learn to love.And the heart is the symbol of that love.
    60. The eternal Son of God, in his utter transcendence, chose to love each of us with a human heart.His human emotions became the sacrament of that infinite and endless love.His heart, then, is not merely a symbol for some disembodied spiritual truth.In gazing upon the Lord’s heart, we contemplate a physical reality, his human flesh, which enables him to possess genuine human emotions and feelings, like ourselves, albeit fully transformed by his divine love.Our devotion must ascend to the infinite love of the Person of the Son of God, yet we need to keep in mind that his divine love is inseparable from his human love.The image of his heart of flesh helps us to do precisely this.
    61. Since the heart continues to be seen in the popular mind as the affective centre of each human being, it remains the best means of signifying the divine love of Christ, united forever and inseparably to his wholly human love.Pius XII observed that the Gospel, in referring to the love of Christ’s heart, speaks “not only of divine charity but also human affection”.Indeed, “the heart of Jesus Christ, hypostatically united to the divine Person of the Word, beyond doubt throbbed with love and every other tender affection”.[36]
    62. The Fathers of the Church, opposing those who denied or downplayed the true humanity of Christ, insisted on the concrete and tangible reality of the Lord’s human affections.Saint Basil emphasized that the Lord’s incarnation was not something fanciful, and that “the Lord possessed our natural affections”.[37]Saint John Chrysostom pointed to an example: “Had he not possessed our nature, he would not have experienced sadness from time to time”.[38]Saint Ambrose stated that “in taking a soul, he took on the passions of the soul”.[39]For Saint Augustine, our human affections, which Christ assumed, are now open to the life of grace: “The Lord Jesus assumed these affections of our human weakness, as he did the flesh of our human weakness, not out of necessity, but consciously and freely…lest any who feel grief and sorrow amid the trials of life should think themselves separated from his grace”.[40]Finally, Saint John Damascene viewed the genuine affections shown by Christ in his humanity as proof that he assumed our nature in its entirety in order to redeem and transform it in its entirety: Christ, then, assumed all that is part of human nature, so that all might be sanctified.[41]
    63. Here, we can benefit from the thoughts of a theologian who maintains that, “due to the influence of Greek thought, theology long relegated the body and feelings to the world of the pre-human or sub-human or potentially inhuman; yet what theology did not resolve in theory, spirituality resolved in practice.This, together with popular piety, preserved the relationship with the corporal, psychological and historical reality of Jesus.The Stations of the Cross, devotion to Christ’s wounds, his Precious Blood and his Sacred Heart, and a variety of Eucharist devotions… all bridged the gaps in theology by nourishing our hearts and imagination, our tender love for Christ, our hope and memory, our desires and feelings.Reason and logic took other directions”.[42]
    A THREEFOLD LOVE
    64. Nor do we remain only on the level of the Lord’s human feelings, beautiful and moving as they are.In contemplating Christ’s heart we also see how, in his fine and noble sentiments, his kindness and gentleness and his signs of genuine human affection, the deeper truth of his infinite divine love is revealed.In the words of Benedict XVI, “from the infinite horizon of his love, God wished to enter into the limits of human history and the human condition.He took on a body and a heart.Thus, we can contemplate and encounter the infinite in the finite, the invisible and ineffable mystery in the human heart of Jesus the Nazarene”.[43]
    65. The image of the Lord’s heart speaks to us in fact of a threefold love.First, we contemplate his infinite divine love.Then our thoughts turn to the spiritual dimension of his humanity, in which the heart is “the symbol of that most ardent love which, infused into his soul, enriches his human will”.Finally, “it is a symbol also of his sensible love”.[44]
    66. These three loves are not separate, parallel or disconnected, but together act and find expression in a constant and vital unity.For “by faith, through which we believe that the human and divine nature were united in the Person of Christ, we can see the closest bonds between the tender love of the physical heart of Jesus and the twofold spiritual love, namely human and divine”.[45]
    67. Entering into the heart of Christ, we feel loved by a human heart filled with affections and emotions like our own.Jesus’ human will freely chooses to love us, and that spiritual love is flooded with grace and charity.When we plunge into the depths of his heart, we find ourselves overwhelmed by the immense glory of his infinite love as the eternal Son, which we can no longer separate from his human love.It is precisely in his human love, and not apart from it, that we encounter his divine love: we discover “the infinite in the finite”.[46]
    68. It is the constant and unequivocal teaching of the Church that our worship of Christ’s person is undivided, inseparably embracing both his divine and his human natures.From ancient times, the Church has taught that we are to “adore one and the same Christ, the Son of God and of man, consisting of and in two inseparable and undivided natures”.[47]And we do so “with one act of adoration… inasmuch as the Word became flesh”.[48]Christ is in no way “worshipped in two natures, whereby two acts of worship are introduced”; instead, we venerate “by one act of worship God the Word made flesh, together with his own flesh”.[49]
    69. Saint John of the Cross sought to explain that in mystical experience the infinite love of the risen Christ is not perceived as alien to our lives.The infinite in some way “condescends” to enable us, through the open heart of Christ, to experience an encounter of truly reciprocal love, for “it is indeed credible that a bird of lowly flight can capture the royal eagle of the heights, if this eagle descends with the desire of being captured”.[50]He also explains that the Bridegroom, “beholding that the bride is wounded with love for him, because of her moan he too is wounded with love for her.Among lovers, the wound of one is the wound of both”.[51]John of the Cross regards the image of Christ’s pierced side as an invitation to full union with the Lord.Christ is the wounded stag, wounded when we fail to let ourselves be touched by his love, who descends to the streams of water to quench his thirst and is comforted whenever we turn to him:
    “Return, dove!
    The wounded stag
    is in sight on the hill,
    cooled by the breeze of your flight”.[52]
    TRINITARIAN PERSPECTIVES
    70. Devotion to the heart of Jesus, as a direct contemplation of the Lord that draws us into union with him, is clearly Christological in nature.We see this in the Letter to the Hebrews, which urges us to “run with perseverance the race that is set before us, looking to Jesus” (12:2).At the same time, we need to realize that Jesus speaks of himself as the way to the Father: “I am the way…No one comes to the Father except through me” (Jn14:6).Jesus wants to bring us to the Father.That is why, from the very beginning, the Church’s preaching does not end with Jesus, but with the Father.As source and fullness, the Father is ultimately the one to be glorified.[53]
    71. If we turn, for example, to the Letter to the Ephesians, we can see clearly how our worship is directed to the Father: “I bow my knees before the Father” (3:14).There is “one God and Father of all, who is above all and through all and in all” (4:6).“Give thanks to God the Father at all times and for everything” (5:20).It is the Father “for whom we exist” (1 Cor8:6).In this sense, Saint John Paul II could say that, “the whole of the Christian life is like a greatpilgrimage to the house of the Father”.[54]This too was the experience of Saint Ignatius of Antioch on his path to martyrdom: “In me there is left no spark of desire for mundane things, but only a murmur of living water that whispers within me, ‘Come to the Father’”.[55]
    72. The Father is, before all else, the Father of Jesus Christ: “Blessed be the God and Father of our Lord Jesus Christ”(Eph1:3).He is “the God of our Lord Jesus Christ, the Father of glory” (Eph1:17).When the Son became man, all the hopes and aspirations of his human heart were directed towards the Father.If we consider the way Christ spoke of the Father, we can grasp the love and affection that his human heart felt for him, this complete and constant orientation towards him.[56]Jesus’ life among us was a journey of response to the constant call of his human heart to come to the Father.[57]
    73. We know that the Aramaic word Jesus used to address the Father was “Abba”, an intimate and familiar term that some found disconcerting (cf.Jn5:18).It is how he addressed the Father in expressing his anguish at his impending death: “Abba,Father, for you all things are possible; remove this cup from me; yet, not what I want, but what you want” (Mk14:36).Jesus knew well that he had always been loved by the Father: “You loved me before the foundation of the world” (Jn17:24).In his human heart, he had rejoiced at hearing the Father say to him: “You are my Son, the Beloved; with you I am well pleased” (Mk1:11).
    74. The Fourth Gospel tells us that the eternal Son was always “close to the Father’s heart” (Jn1:18).[58]Saint Irenaeus thus declares that “the Son of God was with the Father from the beginning”.[59]Origen, for his part, maintains that the Son perseveres “in uninterrupted contemplation of the depths of the Father”.[60]When the Son took flesh, he spent entire nights conversing with his beloved Father on the mountaintop (cf.Lk6:12).He told us, “I must be in my Father’s house” (Lk2:49).We see too how he expressed his praise: “Jesus rejoiced in the Holy Spirit and said, ‘I thank you, Father, Lord of heaven and earth’ (Lk10:21).His last words, full of trust, were, “Father, into your hands I commend my spirit” (Lk23:46).
    75. Let us now turn to the Holy Spirit, whose fire fills the heart of Christ.As Saint John Paul II once said, Christ’s heart is “the Holy Spirit’s masterpiece”.[61]This is more than simply a past event, for even now “the heart of Christ is alive with the action of the Holy Spirit, to whom Jesus attributed the inspiration of his mission (cf.Lk4:18;Is61:1) and whose sending he had promised at the Last Supper.It is the Spirit who enables us to grasp the richness of the sign of Christ’s pierced side, from which the Church has sprung (cf.Sacrosanctum Concilium, 5)”.[62]In a word, “only the Holy Spirit can open up before us the fullness of the ‘inner man’, which is found in the heart of Christ.He alone can cause our human hearts to draw strength from that fullness, step by step”.[63]
    76. If we seek to delve more deeply into the mysterious working of the Spirit, we learn that he groans within us, saying “Abba!”Indeed,“the proof that you are children is that God has sent the Spirit of his Son into our hearts, crying, ‘Abba! Father!’” (Gal4:6).For “the Spirit bears witness with our spirit that we are children of God” (Rom8:16).The Holy Spirit at work in Christ’s human heart draws him unceasingly to the Father.When the Spirit unites us to the sentiments of Christ through grace, he makes us sharers in the Son’s relationship to the Father, whereby we receive “a spirit of adoption through which we cry out, ‘Abba! Father!’” (Rom8:15).
    77.Our relationship with the heart of Christ is thus changed, thanks to the prompting of the Spirit who guides us to the Father, the source of life and the ultimate wellspring of grace.Christ does not expect us simply to remain in him.His love is “the revelation of the Father’s mercy”,[64]and his desire is that, impelled by the Spirit welling up from his heart, we should ascend to the Father “with him and in him”.We give glory to the Father “through” Christ,[65]“with” Christ,[66]and “in” Christ.[67]Saint John Paul II taught that, “the Saviour’s heart invites us to return to the Father’s love, which is the source of every authentic love”.[68]This is precisely what the Holy Spirit, who comes to us through the heart of Christ, seeks to nurture in our hearts.For this reason, the liturgy, through the enlivening work of the Spirit, always addresses the Father from the risen heart of Christ.
    RECENT TEACHINGS OF THE MAGISTERIUM
    78.In numerous ways, Christ’s heart has always been present in the history of Christian spirituality.In the Scriptures and in the early centuries of the Church’s life, it appeared under the image of the Lord’s wounded side, as a fountain of grace and a summons to a deep and loving encounter.In this same guise, it has reappeared in the writings of numerous saints, past and present.In recent centuries, this spirituality has gradually taken on the specific form of devotion to the Sacred Heart of Jesus.
    79. A number of my Predecessors have spoken in various ways about the heart of Christ and exhorted us to unite ourselves to it.At the end of the nineteenth century, Leo XIII encouraged us to consecrate ourselves to the Sacred Heart, thus uniting our call to union with Christ and our wonder before the magnificence of his infinite love.[69]Some thirty years later, Pius XI presented this devotion as a “summa” of the experience of Christian faith.[70]Pius XII went on to declare that adoration of the Sacred Heart expresses in an outstanding way, as a sublime synthesis, the worship we owe to Jesus Christ.[71]
    80. More recently, Saint John Paul II presented the growth of this devotion in recent centuries as a response to the rise of rigorist and disembodied forms of spirituality that neglected the richness of the Lord’s mercy.At the same time, he saw it as a timely summons to resist attempts to create a world that leaves no room for God.“Devotion to the Sacred Heart, as it developed in Europe two centuries ago, under the impulse of the mystical experiences of Saint Margaret Mary Alacoque, was aresponse to Jansenist rigor, which ended up disregarding God’s infinite mercy…The men and women of the third millennium need the heart of Christin order to know God and to know themselves; they need it to build the civilization of love”.[72]
    81. Benedict XVI asked us to recognize in the heart of Christ an intimate and daily presence in our lives: “Every person needs a ‘centre’ for his or her own life, a source of truth and goodness to draw upon in the events, situations and struggles of daily existence.All of us, when we pause in silence, need to feel not only the beating of our own heart, but deeper still, the beating of a trustworthy presence, perceptible with faith’s senses and yet much more real: the presence of Christ, the heart of the world”.[73]
    FURTHER REFLECTIONS AND RELEVANCE FOR OUR TIMES
    82. The expressive and symbolic image of Christ’s heart is not the only means granted us by the Holy Spirit for encountering the love of Christ, yet it is, as we have seen, an especially privileged one.Even so, it constantly needs to be enriched, deepened and renewed through meditation, the reading of the Gospel and growth in spiritual maturity.Pius XII made it clear that the Church does not claim that, “we must contemplate and adore in the heart of Jesus a ‘formal’ image, that is, a perfect and absolute sign of his divine love, for the essence of this love can in no way be adequately expressed by any created image whatsoever”.[74]
    83. Devotion to Christ’s heart is essential for our Christian life to the extent that it expresses our openness in faith and adoration to the mystery of the Lord’s divine and human love.In this sense, we can once more affirm that the Sacred Heart is a synthesis of the Gospel.[75]We need to remember that the visions or mystical showings related by certain saints who passionately encouraged devotion to Christ’s heart are not something that the faithful are obliged to believe as if they were the word of God.[76]Nonetheless, they are rich sources of encouragement and can prove greatly beneficial, even if no one need feel forced to follow them should they not prove helpful on his or her own spiritual journey.At the same time, however, we should be mindful that, as Pius XII pointed out, this devotion cannot be said “to owe its origin to private revelations”.[77]
    84. The promotion of Eucharistic communion on the first Friday of each month, for example, sent a powerful message at a time when many people had stopped receiving communion because they were no longer confident of God’s mercy and forgiveness and regarded communion as a kind of reward for the perfect.In the context of Jansenism, the spread of this practice proved immensely beneficial, since it led to a clearer realization that in the Eucharist the merciful and ever-present love of the heart of Christ invites us to union with him.It can also be said that this practice can prove similarly beneficial in our own time, for a different reason.Amid the frenetic pace of today’s world and our obsession with free time, consumption and diversion, cell phones and social media, we forget to nourish our lives with the strength of the Eucharist.
    85. While no one should feel obliged to spend an hour in adoration each Thursday, the practice ought surely to be recommended.When we carry it out with devotion, in union with many of our brothers and sisters and discover in the Eucharist the immense love of the heart of Christ, we “adore, together with the Church, the sign and manifestation of the divine love that went so far as to love, through the heart of the incarnate Word, the human race”.[78]
    86. Many Jansenists found this difficult to comprehend, for they looked askance on all that was human, affective and corporeal, and so viewed this devotion as distancing us from pure worship of the Most High God.Pius XII described as “false mysticism”[79]the elitist attitude of those groups that saw God as so sublime, separate and distant that they regarded affective expressions of popular piety as dangerous and in need of ecclesiastical oversight.
    87. It could be argued that today, in place of Jansenism, we find ourselves before a powerful wave of secularization that seeks to build a world free of God.In our societies, we are also seeing a proliferation of varied forms of religiosity that have nothing to do with a personal relationship with the God of love, but are new manifestations of a disembodied spirituality.I must warn that within the Church too, a baneful Jansenist dualism has re-emerged in new forms.This has gained renewed strength in recent decades, but it is a recrudescence of that Gnosticism which proved so great a spiritual threat in the early centuries of Christianity because it refused to acknowledge the reality of “the salvation of the flesh”.For this reason, I turn my gaze to the heart of Christ and I invite all of us to renew our devotion to it.I hope this will also appeal to today’s sensitivities and thus help us to confront the dualisms, old and new, to which this devotion offers an effective response.
    88. I would add that the heart of Christ also frees us from another kind of dualism found in communities and pastors excessively caught up in external activities, structural reforms that have little to do with the Gospel, obsessive reorganization plans, worldly projects, secular ways of thinking and mandatory programmes.The result is often a Christianity stripped of the tender consolations of faith, the joy of serving others, the fervour of personal commitment to mission, the beauty of knowing Christ and the profound gratitude born of the friendship he offers and the ultimate meaning he gives to our lives.This too is the expression of an illusory and disembodied otherworldliness.
    89. Once we succumb to these attitudes, so widespread in our day, we tend to lose all desire to be cured of them.This leads me to propose to the whole Church renewed reflection on the love of Christ represented in his Sacred Heart.For there we find the whole Gospel, a synthesis of the truths of our faith, all that we adore and seek in faith, all that responds to our deepest needs.
    90. As we contemplate the heart of Christ, the incarnate synthesis of the Gospel, we can, following the example of Saint Therese of the Child Jesus, “place heartfelt trust not in ourselves but in the infinite mercy of a God who loves us unconditionally and has already given us everything in the cross of Jesus Christ”.[80]Therese was able to do this because she had discovered in the heart of Christ that God is love: “To me he has granted his infinite mercy, and through it I contemplate and adore the other divine perfections”.[81]That is why a popular prayer, directed like an arrow towards the heart of Christ, says simply: “Jesus, I trust in you”.[82]No other words are needed.
    91. In the following chapters, we will emphasize two essential aspects that contemporary devotion to the Sacred Heart needs to combine, so that it can continue to nourish us and bring us closer to the Gospel: personal spiritual experience and communal missionary commitment.
    CHAPTER FOUR
    A LOVE THAT GIVES ITSELF AS DRINK
    92. Let us now return to the Scriptures, the inspired texts where, above all, we encounter God’s revelation.There, and in the Church’s living Tradition, we hear what the Lord has wished to tell us in the course of history.By reading several texts from the Old and the New Testaments, we will gain insight into the word of God that has guided the great spiritual pilgrimage of his people down the ages.
    A GOD WHO THIRSTS FOR LOVE
    93. The Bible shows that the people that journeyed through the desert and yearned for freedom received the promise of an abundance of life-giving water: “With joy you will draw water from the wells of salvation” (Is12:3).The messianic prophecies gradually coalesced around the imagery of purifying water: “I will sprinkle clean water upon you, and you shall be clean… a new spirit I will put within you” (Ezek36:25-26).This water would bestow on God’s people the fullness of life, like a fountain flowing from the Temple and bringing a wealth of life and salvation in its wake.“I saw on the bank of the river a great many trees on the one side and on the other… and wherever that river goes, every living creature will live… and when that river enters the sea, its waters will become fresh; everything will live where the river goes” (Ezek47:7-9).
    94. The Jewish festival of Booths (Sukkot), which recalls the forty-year sojourn of Israel in the desert, gradually adopted the symbolism of water as a central element.It included a rite of offering water each morning, which became most solemn on the final day of the festival, when a great procession took place towards the Temple, the altar was circled seven times and the water was offered to God amid loud cries of joy.[83]
    95. The dawn of the messianic era was described as a fountain springing up for the people: “I will pour out a spirit of compassion and supplication on the house of David and the inhabitants of Jerusalem, and they shall look on him whom they have pierced…On that day, a fountain shall be opened for the house of David and the inhabitants of Jerusalem, to cleanse them from sin and impurity” (Zech12:10; 13:1).
    96. One who is pierced, a flowing fountain, the outpouring of a spirit of compassion and supplication: the first Christians inevitably considered these promises fulfilled in the pierced side of Christ, the wellspring of new life.In the Gospel of John, we contemplate that fulfilment.From Jesus’ wounded side, the water of the Spirit poured forth: “One of the soldiers pierced his side with a spear, and at once blood and water flowed out” (Jn19:34).The evangelist then recalls the prophecy that had spoken of a fountain opened in Jerusalem and the pierced one (Jn19:37; cf.Zech12:10).The open fountain is the wounded side of Christ.
    97. Earlier, John’s Gospel had spoken of this event, when on “the last day of the festival” (Jn7:37), Jesus cried out to the people celebrating the great procession: “Let anyone who is thirsty come to me and drink… out of his heart shall flow rivers of living water” (Jn7:37-38).For this to be accomplished, however, it was necessary for Jesus’ “hour” to come, for he “was not yet glorified” (Jn7:39).That fulfilment was to come on the cross, in the blood and water that flowed from the Lord’s side.
    98. The Book of Revelation takes up the prophecies of the pierced one and the fountain: “every eye will see him, even those who pierced him” (Rev1:7); “Let everyone who is thirsty come; let anyone who wishes take the water of life as a gift” (Rev22:17).
    99. The pierced side of Jesus is the source of the love that God had shown for his people in countless ways.Let us now recall some of his words:
    “Because you are precious in my sight and honoured, I love you” (Is43:4).
    “Can a woman forget her nursing child, or show no compassion for the child of her womb?Even if these may forget, yet I will not forget you.See, I have inscribed you on the palms of my hands” (Is49:15-16).
    “For the mountains may depart, and the hills be removed, but my steadfast love shall not depart from you, and my covenant of peace shall not be removed” (Is54:10).
    “I have loved you with an everlasting love; therefore I have continued my faithfulness to you” (Jer31:3).
    “The Lord, your God, is in your midst, a warrior who gives you victory; he will rejoice over you with gladness, he will renew you in his love; he will exult over you with loud singing” (Zeph3:17).
    100.The prophet Hosea goes so far as to speak of the heart of God, who “led them with cords of human kindness, with bands of love” (Hos11:4).When that love was spurned, the Lord could say, “My heart is stirred within me; my compassion grows warm and tender (Hos11:8).God’s merciful love always triumphs (cf.Hos11:9), and it was to find its most sublime expression in Christ, his definitive Word of love.
    101.The pierced heart of Christ embodies all God’s declarations of love present in the Scriptures.That love is no mere matter of words; rather, the open side of his Son is a source of life for those whom he loves, the fount that quenches the thirst of his people.As Saint John Paul II pointed out, “the essential elements of devotion [to the Sacred Heart] belong in a permanent fashion to the spirituality of the Church throughout her history; for since the beginning, the Church has looked to the heart of Christ pierced on the Cross”.[84]
    ECHOES OF THE WORD IN HISTORY
    102.Let us consider some of the ways that, in the history of the Christian faith, these prophecies were understood to have been fulfilled.Various Fathers of the Church, especially those in Asia Minor, spoke of the wounded side of Jesus as the source of the water of the Holy Spirit: the word, its grace and the sacraments that communicate it.The courage of the martyrs is born of “the heavenly fount of living waters flowing from the side of Christ”[85]or, in the version of Rufinus, “the heavenly and eternal streams that flow from the heart of Christ”.[86]We believers, reborn in the Spirit, emerge from the cleft in the rock; “we have come forth from the heart of Christ”.[87]His wounded side, understood as his heart, filled with the Holy Spirit, comes to us as a flood of living water. “The fount of the Spirit is entirely in Christ”.[88]Yet the Spirit whom we have received does not distance us from the risen Lord, but fills us with his presence, for by drinking of the Spirit we drink of the same Christ.In the words of Saint Ambrose: “Drink of Christ, for he is the rock that pours forth a flood of water.Drink of Christ, for he is the source of life.Drink of Christ, for he is the river whose streams gladden the city of God.Drink of Christ, for he is our peace.Drink of Christ, for from his side flows living water”.[89]
    103.Saint Augustine opened the way to devotion to the Sacred Heart as the locus of our personal encounter with the Lord.For Augustine, Christ’s wounded side is not only the source of grace and the sacraments, but also the symbol of our intimate union with Christ, the setting of an encounter of love.There we find the source of the most precious wisdom of all, which is knowledge of him.In effect, Augustine writes that John, the beloved disciple, reclining on Jesus’ bosom at the Last Supper, drew near to the secret place of wisdom.[90]Here we have no merely intellectual contemplation of an abstract theological truth.As Saint Jerome explains, a person capable of contemplation “does not delight in the beauty of that stream of water, but drinks of the living water flowing from the side of the Lord”.[91]
    104.Saint Bernard takes up the symbolism of the pierced side of the Lord and understands it explicitly as a revelation and outpouring of all of the love of his heart.Through that wound, Christ opens his heart to us and enables us to appropriate the boundless mystery of his love and mercy: “I take from the bowels of the Lord what is lacking to me, for his bowels overflow with mercy through the holes through which they stream.Those who crucified him pierced his hands and feet, they pierced his side with a lance.And through those holes I can taste wild honey and oil from the rocks of flint, that is, I can taste and see that the Lord is good…A lance passed through his soul even to the region of his heart.No longer is he unable to take pity on my weakness.The wounds inflicted on his body have disclosed to us the secrets of his heart; they enable us to contemplate the great mystery of his compassion”.[92]
    105.This theme reappears especially in William of Saint-Thierry, who invites us to enter into the heart of Jesus, who feeds us from his own breast.[93]This is not surprising if we recall that for William, “the art of arts is the art of love…Love is awakened by the Creator of nature, and is a power of the soul that leads it, as if by its natural gravity, to its proper place and end”.[94]That proper place, where love reigns in fullness, is the heart of Christ: “Lord, where do you lead those whom you embrace and clasp to your heart?Your heart, Jesus, is the sweet manna of your divinity that you hold within the golden jar of your soul (cf.Heb9:4), and that surpasses all knowledge.Happy those who, having plunged into those depths, have been hidden by you in the recess of your heart”.[95]
    106.Saint Bonaventure unites these two spiritual currents.He presents the heart of Christ as the source of the sacraments and of grace, and urges that our contemplation of that heart become a relationship between friends, a personal encounter of love.
    107.Bonaventure makes us appreciate first the beauty of the grace and the sacraments flowing from the fountain of life that is the wounded side of the Lord.“In order that from the side of Christ sleeping on the cross, the Church might be formed and the Scripture fulfilled that says: ‘They shall look upon him whom they pierced’, one of the soldiers struck him with a lance and opened his side.This was permitted by divine Providence so that, in the blood and water flowing from that wound, the price of our salvation might flow from the hidden wellspring of his heart, enabling the Church’s sacraments to confer the life of grace and thus to be, for those who live in Christ, like a cup filled from the living fount springing up to life eternal”.[96]
    108.Bonaventure then asks us to take another step, in order that our access to grace not be seen as a kind of magic or neo-platonic emanation, but rather as a direct relationship with Christ, a dwelling in his heart, so that whoever drinks from that source becomes a friend of Christ, a loving heart.“Rise up, then, O soul who are a friend of Christ, and be the dove that nests in the cleft in the rock; be the sparrow that finds a home and constantly watches over it; be the turtledove that hides the offspring of its chaste love in that most holy cleft”.[97]
    THE SPREAD OF DEVOTION TO THE HEART OF CHRIST
    109.Gradually, the wounded side of Christ, as the abode of his love and the wellspring of the life of grace, began to be associated with his heart, especially in monastic life.We know that in the course of history, devotion to the heart of Christ was not always expressed in the same way, and that its modern developments, related to a variety of spiritual experiences, cannot be directly derived from the mediaeval forms, much less the biblical forms in which we glimpse the seeds of that devotion.This notwithstanding, the Church today rejects nothing of the good that the Holy Spirit has bestowed on us down the centuries, for she knows that it will always be possible to discern a clearer and deeper meaning in certain aspects of that devotion, and to gain new insights over the course of time.
    110.A number of holy women, in recounting their experiences of encounter with Christ, have spoken of resting in the heart of the Lord as the source of life and interior peace.This was the case with Saints Lutgarde and Mechtilde of Hackeborn, Saint Angela of Foligno and Dame Julian of Norwich, to mention only a few.Saint Gertrude of Helfta, a Cistercian nun, tells of a time in prayer when she reclined her head on the heart of Christ and heard its beating.In a dialogue with Saint John the Evangelist, she asked him why he had not described in his Gospel what he experienced when he did the same.Gertrude concludes that “the sweet sound of those heartbeats has been reserved for modern times, so that, hearing them, our aging and lukewarm world may be renewed in the love of God”.[98]Might we think that this is indeed a message for our own times, a summons to realize how our world has indeed “grown old”, and needs to perceive anew the message of Christ’s love?Saint Gertrude and Saint Mechtilde have been considered among “the most intimate confidants of the Sacred Heart”.[99]
    111.The Carthusians, encouraged above all by Ludolph of Saxony, found in devotion to the Sacred Heart a means of growth in affection and closeness to Christ.All who enter through the wound of his heart are inflamed with love.Saint Catherine of Siena wrote that the Lord’s sufferings are impossible for us to comprehend, but the open heart of Christ enables us to have a lively personal encounter with his boundless love.“I wished to reveal to you the secret of my heart, allowing you to see it open, so that you can understand that I have loved you so much more than I could have proved to you by the suffering that I once endured”.[100]
    112.Devotion to the heart of Christ slowly passed beyond the walls of the monasteries to enrich the spirituality of saintly teachers, preachers and founders of religious congregations, who then spread it to the farthest reaches of the earth.[101]
    113.Particularly significant was the initiative taken by Saint John Eudes, who, “after preaching with his confrères a fervent mission in Rennes, convinced the bishop of that diocese to approve the celebration of the feast of the Adorable Heart of our Lord Jesus Christ.This was the first time that such a feast was officially authorized in the Church.Following this, between the years 1670 and 1671, the bishops of Coutances, Evreux, Bayeux, Lisieux and Rouen authorized the celebration of the feast for their respective dioceses”.[102]
    SAINT FRANCIS DE SALES
    114.In modern times, mention should be made of the important contribution of Saint Francis de Sales.Francis frequently contemplated Christ’s open heart, which invites us to dwell therein, in a personal relationship of love that sheds light on the mysteries of his life.In his writings, the saintly Doctor of the Church opposes a rigorous morality and a legalistic piety by presenting the heart of Jesus as a summons to complete trust in the mysterious working of his grace.We see this expressed in his letter to Saint Jane Francis de Chantal: “I am certain that we will remain no longer in ourselves… but dwell forever in the Lord’s wounded side, for apart from him not only can we do nothing, but even if we were able, we would lack the desire to do anything”.[103]
    115.For Francis de Sales, true devotion had nothing to do with superstition or perfunctory piety, since it entails a personal relationship in which each of us feels uniquely and individually known and loved by Christ.“This most adorable and lovable heart of our Master, burning with the love which he professes to us, [is] a heart on which all our names are written…Surely it is a source of profound consolation to know that we are loved so deeply by our Lord, who constantly carries us in his heart”.[104]With the image of our names written on the heart of Christ, Saint Francis sought to express the extent to which Christ’s love for each of us is not something abstract and generic, but utterly personal, enabling each believer to feel known and respected for who he or she is.“How lovely is this heaven, in which the Lord is its sun and his breast a fountain of love from which the blessed drink to their heart’s content!Each of us can look therein and see our name carved in letters of love, which true love alone can read and true love has written.Dear God!And what too, beloved daughter, of our loved ones?Surely they will be there too; for even if our hearts have no love, they nonetheless possess a desire for love and the beginnings of love”.[105]
    116.Francis saw this experience of Christ’s love as essential to the spiritual life, indeed one of the great truths of faith: “Yes, my beloved daughter, he thinks of you and not only, but even the smallest hair of your head: this is an article of faith and in no way must it be doubted”.[106]It follows that the believer becomes capable of complete abandonment in the heart of Christ, in which he or she finds repose, comfort and strength: “Oh God!What happiness to be thus embraced and to recline in the bosom of the Saviour.Remain thus, beloved daughter, and like another little one, Saint John, while others are tasting different kinds of food at the table of the Lord, lay your head, your soul and your spirit, in a gesture of utter trust, on the loving bosom of this dear Lord”.[107]“I hope that you are resting in the cleft of the turtledove and in the pierced side of our beloved Saviour…How good is this Lord, my beloved daughter!How loving is his Heart!Let us remain here, in this holy abode”.[108]
    117.At the same time, faithful to his teaching on the sanctification of ordinary life, Francis proposes that this experience take place in the midst of the activities, tasks and obligations of our daily existence.“You asked me how souls that are attracted in prayer to this holy simplicity, to this perfect abandonment in God, should conduct themselves in all their actions?I would reply that, not only in prayer, but also in the conduct of everyday life they should advance always in the spirit of simplicity, abandoning and completely surrendering their soul, their actions and their accomplishments to God’s will.And to do so with a love marked by perfect and absolute trust, abandoning themselves to grace and to the care of the eternal love that divine Providence feels for them”.[109]
    118.For this reason, when looking for a symbol to convey his vision of spiritual life, Francis de Sales concluded: “I have thought, dear Mother, if you agree, that we should take as our emblem a single heart pierced by two arrows, the whole enclosed in a crown of thorns”.[110]
    A NEW DECLARATION OF LOVE
    119.Under the salutary influence of this Salesian spirituality, the events of Paray-le-Monial took place at the end of the seventeenth century.Saint Margaret Mary Alacoque reported a remarkable series of apparitions of Christ between the end of December 1673 and June of 1675.Fundamental to these was a declaration of love that stood out in the first apparition.Jesus said: “My divine Heart is so inflamed with love for men, and for you in particular, that, no longer able to contain in itself the flames of its ardent charity, it must pour them out through you and be manifested to them, in order to enrich them with its precious treasures which I now reveal to you”.[111]
    120.Saint Margaret Mary’s account is powerful and deeply moving: “He revealed to me the wonders of his love and the inexplicable secrets of his Sacred Heart which he had hitherto kept hidden from me, until he opened it to me for the first time, in such a striking and sensible manner that he left me no room for doubt”.[112]In subsequent appearances, that consoling message was reiterated: “He revealed to me the ineffable wonders of his pure love and to what extremes it had led him to love mankind”.[113]
    121.This powerful realization of the love of Jesus Christ bequeathed to us by Saint Margaret Mary can spur us to greater union with him.We need not feel obliged to accept or appropriate every detail of her spiritual experience, in which, as often happens, God’s intervention combines with human elements related to the individual’s own desires, concerns and interior images.[114]Such experiences must always be interpreted in the light of the Gospel and the rich spiritual tradition of the Church, even as we acknowledge the good they accomplish in many of our brothers and sisters.In this way, we can recognize the gifts of the Holy Spirit present in those experiences of faith and love.More important than any individual detail is the core of the message handed on to us, which can be summed up in the words heard by Saint Margaret Mary: “This is the heart that so loved human beings that it has spared nothing, even to emptying and consuming itself in order to show them its love”.[115]
    122.This apparition, then, invites us to grow in our encounter with Christ, putting our trust completely in his love, until we attain full and definitive union with him.“It is necessary that the divine heart of Jesus in some way replace our own; that he alone live and work in us and for us; that his will… work absolutely and without any resistance on our part; and finally that its affections, thoughts and desires take the place of our own, especially his love, so that he is loved in himself and for our sakes.And so, this lovable heart being our all in all, we can say with Saint Paul that we no longer live our own lives, but it is he who lives within us”.[116]
    123.In the first message that Saint Margaret Mary received, this invitation was expressed in vivid, fervent and loving terms.“He asked for my heart, which I asked him to take, which he did and then placed myself in his own adorable heart, from which he made me see mine like a little atom consumed in the fiery furnace of his own”.[117]
    124.At another point, we see that the one who gives himself to us is the risen and glorified Christ, full of life and light.If indeed, at different times, he spoke of the suffering that he endured for our sake and of the ingratitude with which it is met, what we see here are not so much his blood and painful wounds, but rather the light and fire of the Lord of life.The wounds of the passion have not disappeared, but are now transfigured.Here we see the paschal mystery in all its splendour: “Once, when the Blessed Sacrament was exposed, Jesus appeared, resplendent in glory, with his five wounds that appeared as so many suns blazing forth from his sacred humanity, but above all from his adorable breast, which seemed a fiery furnace.Opening his robe, he revealed his most loving and lovable heart, which was the living source of those flames.Then it was that I discovered the ineffable wonders of his pure love, with which he loves men to the utmost, yet receives from them only ingratitude and indifference”.[118]
    SAINT CLAUDE DE LA COLOMBIÈRE
    125.When Saint Claude de La Colombière learned of the experiences of Saint Margaret Mary, he immediately undertook her defence and began to spread word of the apparitions.Saint Claude played a special role in developing the understanding of devotion to the Sacred Heart and its meaning in the light of the Gospel.
    126.Some of the language of Saint Margaret Mary, if poorly understood, might suggest undue trust in our personal sacrifices and offerings.Saint Claude insists that contemplation of the heart of Jesus, when authentic, does not provoke self-complacency or a vain confidence in our own experiences or human efforts, but rather an ineffable abandonment in Christ that fills our life with peace, security and decision.He expressed this absolute confidence most eloquently in a celebrated prayer:
    “My God, I am so convinced that you keep watch over those who hope in you, and that we can want for nothing when we look for all in you, that I am resolved in the future to live free from every care and to turn all my anxieties over to you…I shall never lose my hope.I shall keep it to the last moment of my life; and at that moment all the demons in hell will strive to tear it from me…Others may look for happiness from their wealth or their talents; others may rest on the innocence of their life, or the severity of their penance, or the amount of their alms, or the fervour of their prayers.As for me, Lord, all my confidence is confidence itself.This confidence has never deceived anyone…I am sure, therefore, that I shall be eternally happy, since I firmly hope to be, and because it is from you, O God, that I hope for it”.[119]
    127.In a note of January 1677, after mentioning the assurance he felt regarding his mission, Claude continued: “I have come to know that God wanted me to serve him by obtaining the fulfilment of his desires regarding the devotion that he suggested to a person to whom he communicates in confidence, and for whose sake he has desired to make use of my weakness.I have already used it to help several persons”.[120]
    128.It should be recognized that the spirituality of Blessed Claude de La Colombière resulted in a fine synthesis of the profound and moving spiritual experience of Saint Margaret Mary and the vivid and concrete form of contemplation found in the Spiritual Exercises of Saint Ignatius Loyola.At the beginning of the third week of the Exercises, Claude reflected:“Two things have moved me in a striking way.First, the attitude of Christ towards those who sought to arrest him.His heart is full of bitter sorrow; every violent passion is unleashed against him and all nature is in turmoil, yet amid all this confusion, all these temptations, his heart remains firmly directed to God.He does not hesitate to take the part that virtue and the highest virtue suggested to him.Second, the attitude of that same heart towards Judas who betrayed him, the apostles who cravenly abandoned him, the priests and the others responsible for the persecution he suffered; none of these things was able to arouse in him the slightest sentiment of hatred or indignation.I present myself anew to this heart free of anger, free of bitterness, filled instead with genuine compassion towards its enemies”.[121]
    SAINT CHARLES DE FOUCAULD AND SAINT THERESE OF THE CHILD JESUS
    129.Saint Charles de Foucauld and Saint Therese of the Child Jesus, without intending to, reshaped certain aspects of devotion to the heart of Christ and thus helped us understand it in an even more evangelical spirit.Let us now examine how this devotion found expression in their lives.In the following chapter, we will return to them, in order to illustrate the distinctively missionary dimension that each of them brought to the devotion.
    Iesus Caritas
    130.In Louye, Charles de Foucauld was accustomed to visit the Blessed Sacrament with his cousin, Marie de Bondy.One day she showed him an image of the Sacred Heart.[122]His cousin played a fundamental role in Charles’s conversion, as he himself acknowledged: “Since God has made you the first instrument of his mercies towards me, from you everything else began.Had you not converted me, brought me to Jesus and taught me little by little, letter by letter, all that is holy and good, where would I be today?”[123]What Marie awakened in him was an intense awareness of the love of Jesus.That was the essential thing, and centred on devotion to the heart of Jesus, in which he encountered unbounded mercy: “Let us trust in the infinite mercy of the one whose heart you led me to know”.[124]
    131.Later, his spiritual director, Father Henri Huvelin, helped Charles to deepen his understanding of the inestimable mystery of “this blessed heart of which you spoke to me so often”.[125]On 6 June 1889, Charles consecrated himself to the Sacred Heart, in which he found a love without limits.He told Christ, “You have bestowed on me so many benefits, that it would appear ingratitude towards your heart not to believe that it is disposed to bestow on me every good, however great, and that your love and your generosity are boundless”.[126]He was to become a hermit “under the name of the heart of Jesus”.[127]
    132.On 17 May 1906, the same day in which Brother Charles, alone, could no longer celebrate Mass, he wrote of his promise “to let the heart of Jesus live in me, so that it is no longer I who live, but the heart of Jesus that lives in me, as he lived in Nazareth”.[128]His friendship with Jesus, heart to heart, was anything but a privatized piety.It inspired the austere life he led in Nazareth, born of a desire to imitate Christ and to be conformed to him.His loving devotion to the heart of Jesus had a concrete effect on his style of life, and his Nazareth was nourished by his personal relationship with the heart of Christ.
    Saint Therese of the Child Jesus
    133.Like Saint Charles de Foucauld, Saint Therese of the Child Jesus was influenced by the great renewal of devotion that swept nineteenth-century France.Father Almire Pichon, the spiritual director of her family, was seen as a devoted apostle of the Sacred Heart.One of her sisters took as her name in religion “Sister Marie of the Sacred Heart”, and the monastery that Therese entered was dedicated to the Sacred Heart.Her devotion nonetheless took on certain distinctive traits with regard to the customary piety of that age.
    134.When Therese was fifteen, she could speak of Jesus as the one “whose heart beats in unison with my own”.[129]Two years later, speaking of the image of Christ’s heart crowned with thorns, she wrote in a letter: “You know that I myself do not see the Sacred Heart as everyone else.I think that the Heart of my Spouse is mine alone, just as mine is his alone, and I speak to him then in the solitude of this delightful heart to heart, while waiting to contemplate him one day face to face”.[130]
    135.In one of her poems, Therese voiced the meaning of her devotion, which had to do more with friendship and assurance than with trust in her sacrifices:
    “I need a heart burning with tenderness,
    Who will be my support forever,
    Who loves everything in me, even my weakness…
    And who never leaves me day or night…
    I must have a God who takes on my nature,
    And becomes my brother and is able to suffer! …
    Ah! I know well, all our righteousness
    Is worthless in your sight…
    So I, for my purgatory,
    Choose your burning love, O heart of my God!”[131]
    136.Perhaps the most important text for understanding the devotion of Therese to the heart of Christ is a letter that she wrote three months before her death to her friend Maurice Bellière.“When I see Mary Magdalene walking up before the many guests, washing with her tears the feet of her adored Master, whom she is touching for the first time, I feel that her hearthas understood the abysses of love and mercy of the heart of Jesus, and, sinner though she is, this heart of love was disposed not only to pardon her but to lavish on her the blessings of his divine intimacy, to lift her to the highest summits of contemplation.Ah! dear little Brother, ever since I have been given the grace to understand also the love of the heart of Jesus, I admit that it has expelled all fear from my heart.The remembrance of my faults humbles me, draws me never to depend on my strength which is only weakness, but this remembrance speaks to me of mercy and love even more”.[132]
    137.Those moralizers who want to keep a tight rein on God’s mercy and grace might claim that Therese could say this because she was a saint, but a simple person could not say the same.In that way, they excise from the spirituality of Saint Therese its wonderful originality, which reflects the heart of the Gospel.Sadly, in certain Christian circles we often encounter this attempt to fit the Holy Spirit into a certain preconceived pattern in a way that enables them to keep everything under their supervision.Yet this astute Doctor of the Church reduces them to silence and directly contradicts their reductive view in these clear words: “If I had committed all possible crimes, I would always have the same confidence; I feel that this whole multitude of offenses would be like a drop of water thrown into a fiery furnace”.[133]
    138.To Sister Marie, who praised her generous love of God, prepared even to embrace martyrdom, Therese responded at length in a letter that is one of the great milestones in the history of spirituality.This page ought to be read a thousand times over for its depth, clarity and beauty.There, Therese helps her sister, “Marie of the Sacred Heart”, to avoid focusing this devotion on suffering, since some had presented reparation primarily in terms of accumulating sacrifices and good works.Therese, for her part, presents confidence as the greatest and best offering, pleasing to the heart of Christ: “My desires of martyrdom are nothing; they are not what give me the unlimited confidence that I feel in my heart.They are, to tell the truth, the spiritual riches that render one unjust, when one rests in them with complacence and one believes that they are something great…what pleases [Jesus] is that he sees me loving my littleness and my poverty, the blind hope that I have in his mercy…That is my only treasure…If you want to feel joy, to have an attraction for suffering, it is your consolation that you are seeking…Understand that to be his victim of love, the weaker one is, without desires or virtues, the more suited one is for the workings of this consuming and transforming Love…Oh!How I would like to be able to make you understand what I feel! …It is confidence and nothing but confidence that must lead us to Love”.[134]
    139.In many of her writings, Therese speaks of her struggle with forms of spirituality overly focused on human effort, on individual merit, on offering sacrifices and carrying out certain acts in order to “win heaven”.For her, “merit does not consist in doing or in giving much, but rather in receiving”.[135]Let us read once again some of these deeply meaningful texts where she emphasizes this and presents it as a simple and rapid means of taking hold of the Lord “by his heart”.
    140.To her sister Léonie she writes, “I assure you that God is much better than you believe.He is content with a glance, a sigh of love…As for me, I find perfection very easy to practise because I have understood it is a matter of taking hold of Jesus by his heart…Look at a little child who has just annoyed his mother… If he comes to her, holding out his little arms, smiling and saying: ‘Kiss me, I will not do it again’, will his mother be able not to press him to her heart tenderly and forget his childish mischief?However, she knows her dear little one will do it again on the next occasion, but this does not matter; if he takes her again by her heart, he will not be punished”.[136]
    141.So too, in a letter to Father Adolphe Roulland she writes, “[M]y way is all confidence and love.I do not understand souls who fear a friend so tender.At times, when I am reading certain spiritual treatises in which perfection is shown through a thousand obstacles, surrounded by a crowd of illusions, my poor little mind quickly tires; I close the learned book that is breaking my head and drying up my heart, and I take up Holy Scripture.Then all seems luminous to me; a single word uncovers for my soul infinite horizons, perfection seems simple to me.I see that it is sufficient to recognize one’s nothingness and to abandon oneself like a child into God’s arms”.[137]
    142.In yet another letter, she relates this to the love shown by a parent: “I do not believe that the heart of [a] father could resist the filial confidence of his child, whose sincerity and love he knows.He realizes, however, that more than once his son will fall into the same faults, but he is prepared to pardon him always, if his son always takes him by his heart”.[138]
    RESONANCES WITHIN THE SOCIETY OF JESUS
    143.We have seen how Saint Claude de La Colombière combined the spiritual experience of Saint Margaret Mary with the aim of the Spiritual Exercises.I believe that the place of the Sacred Heart in the history of the Society of Jesus merits a few brief words.
    144.The spirituality of the Society of Jesus has always proposed an “interior knowledge of the Lord in order to love and follow him more fully”.[139]Saint Ignatius invites us in his Spiritual Exercises to place ourselves before the Gospel that tells us that, “[Christ’s] side was pierced by the lance and blood and water flowed forth”.[140]When retreatants contemplate the wounded side of the crucified Lord, Ignatius suggests that they enter into the heart of Christ.Thus we have a way to enlarge our own hearts, recommended by one who was a “master of affections”, to use the words of Saint Peter Faber in one of his letters to Saint Ignatius.[141]Father Juan Alfonso de Polanco echoed that same expression in his biography of Saint Ignatius: “He [Cardinal Gasparo Contarini] realized that in Father Ignatius he had encountered a master of affections”.[142]The colloquies that Saint Ignatius proposed are an essential part of this training of the heart, for in them we sense and savour with the heart a Gospel message and converse about it with the Lord.Saint Ignatius tells us that we can share our concerns with the Lord and seek his counsel.Anyone who follows the Exercises can readily see that they involve a dialogue, heart to heart.
    145.Saint Ignatius brings his contemplations to a crescendo at the foot of the cross and invites the retreatant to ask the crucified Lord with great affection, “as one friend to another, as a servant to his master”, what he or she must do for him.[143]The progression of the Exercises culminates in the “Contemplation to Attain Love”, which gives rise to thanksgiving and the offering of one’s “memory, understanding and will” to the heart which is the fount and origin of every good thing.[144]This interior contemplation is not the fruit of our understanding and effort, but is to be implored as a gift.
    146.This same experience inspired the great succession of Jesuit priests who spoke explicitly of the heart of Jesus: Saint Francis Borgia, Saint Peter Faber, Saint Alphonsus Rodriguez, Father Álvarez de Paz, Father Vincent Carafa, Father Kasper Drużbicki and countless others.In 1883, the Jesuits declared that, “the Society of Jesus accepts and receives with an overflowing spirit of joy and gratitude the most agreeable duty entrusted to it by our Lord Jesus Christ to practise, promote and propagate devotion to his divine heart”.[145]In September 1871, Father Pieter Jan Beckx consecrated the Society to the Sacred Heart of Jesus and, as a sign that it remains an outstanding element in the life of the Society, Father Pedro Arrupe renewed that consecration in 1972, with a conviction that he explained in these words: “I therefore wish to say to the Society something about which I feel I cannot remain silent.From my novitiate on, I have always been convinced that what we call devotion to the Sacred Heart contains a symbolic expression of what is most profound in Ignatian spirituality, and of an extraordinary efficacy –ultra quam speraverint– both for its own perfection and for its apostolic fruitfulness.I continue to have this same conviction…In this devotion I encounter one of the deepest sources of my interior life”.[146]
    147.When Saint John Paul II urged “all the members of the Society to be even more zealous in promoting this devotion, which corresponds more than ever to the expectations of our time”, he did so because he recognized the profound connection between devotion to the heart of Christ and Ignatian spirituality.For “the desire to ‘know the Lord intimately’ and to ‘have a conversation’ with him, heart to heart, is characteristic of the Ignatian spiritual and apostolic dynamism, thanks to the Spiritual Exercises, and this dynamism is wholly at the service of the love of the heart of God”.[147]
    A BROAD CURRENT OF THE INTERIOR LIFE
    148.Devotion to the heart of Christ reappears in the spiritual journey of many saints, all quite different from each other; in every one of them, the devotion takes on new hues.Saint Vincent de Paul, for example, used to say that what God desires is the heart: “God asks primarily for our heart – our heart – and that is what counts.How is it that a man who has no wealth will have greater merit than someone who has great possessions that he gives up?Because the one who has nothing does it with greater love; and that is what God especially wants…”[148]This means allowing one’s heart to be united to that of Christ.“What blessing should a Sister not hope for from God if she does her utmost to put her heart in the state of being united with the heart of our Lord!”[149]
    149.At times, we may be tempted to consider this mystery of love as an admirable relic from the past, a fine spirituality suited to other times.Yet we need to remind ourselves constantly that, as a saintly missionary once said, “this divine heart, which let itself be pierced by an enemy’s lance in order to pour forth through that sacred wound the sacraments by which the Church was formed, has never ceased to love”.[150]More recent saints, like Saint Pius of Pietrelcina, Saint Teresa of Calcutta and many others, have spoken with deep devotion of the heart of Christ.Here I would also mention the experiences of Saint Faustina Kowalska, which re-propose devotion to the heart of Christ by greatly emphasizing the glorious life of the risen Lord and his divine mercy.Inspired by her experiences and the spiritual legacy of Saint Józef Sebastian Pelczar (1842-1924),[151]Saint John Paul II intimately linked his reflections on divine mercy with devotion to the heart of Christ: “The Church seems in a singular way to profess the mercy of God and to venerate it when she directs herself to the heart of Christ.In fact, it is precisely this drawing close to Christ in the mystery of his heart which enables us to dwell on this point of the revelation of the merciful love of the Father, a revelation that constituted the central content of the messianic mission of the Son of Man”.[152]Saint John Paul also spoke of the Sacred Heart in very personal terms, acknowledging that, “it has spoken to me ever since my youth”.[153]
    150.The enduring relevance of devotion to the heart of Christ is especially evident in the work of evangelization and education carried out by the numerous male and female religious congregations whose origins were marked by this profoundly Christological devotion.Mentioning all of them by name would be an endless undertaking. Let us simply consider two examples taken at random: “The Founder [Saint Daniel Comboni] discovered in the mystery of the heart of Jesus the source of strength for his missionary commitment”.[154]“Caught up as we are in the desires of the heart of Jesus, we want people to grow in dignity, as human beings and as children of God.Our starting point is the Gospel, with all that it demands from us of love, forgiveness and justice, and of solidarity with those who are poor and rejected by the world”.[155]So too, the many shrines worldwide that are consecrated to the heart of Christ continue to be an impressive source of renewal in prayer and spiritual fervour.To all those who in any way are associated with these spaces of faith and charity I send my paternal blessing.
    THE DEVOTION OF CONSOLATION
    151.The wound in Christ’s side, the wellspring of living water, remains open in the risen body of the Saviour.The deep wound inflicted by the lance and the wounds of the crown of thorns that customarily appear in representations of the Sacred Heart are an inseparable part of this devotion, in which we contemplate the love of Christ who offered himself in sacrifice to the very end.The heart of the risen Lord preserves the signs of that complete self-surrender, which entailed intense sufferings for our sake.It is natural, then, that the faithful should wish to respond not only to this immense outpouring of love, but also to the suffering that the Lord chose to endure for the sake of that love.
    With Jesus on the cross
    152.It is fitting to recover one particular aspect of the spirituality that has accompanied devotion to the heart of Christ, namely, the interior desire to offer consolation to that heart.Here I will not discuss the practice of “reparation”, which I deem better suited to the social dimension of this devotion to be discussed in the next chapter.I would like instead to concentrate on the desire often felt in the hearts of the faithful who lovingly contemplate the mystery of Christ’s passion and experience it as a mystery which is not only recollected but becomes present to us by grace, or better, allows us to be mystically present at the moment of our redemption.If we truly love the Lord, how could we not desire to console him?
    153.Pope Pius XI wished to ground this particular devotion in the realization that the mystery of our redemption by Christ’s passion transcends, by God’s grace, all boundaries of time and space.On the cross, Jesus offered himself for all sins, including those yet to be committed, including our own sins.In the same way, the acts we now offer for his consolation, also transcending time, touch his wounded heart.“If, because of our sins too, as yet in the future but already foreseen, the soul of Jesus became sorrowful unto death, it cannot be doubted that at the same time he derived some solace from our reparation, likewise foreseen, at the moment when ‘there appeared to him an angel from heaven’ (Lk22:43), in order that his heart, oppressed with weariness and anguish, might find consolation.And so even now, in a wondrous yet true manner, we can and ought to console that Most Sacred Heart, which is continually wounded by the sins of thankless men”.[156]
    Reasons of the heart
    154.It might appear to some that this aspect of devotion to the Sacred Heart lacks a firm theological basis, yet the heart has its reasons.Here thesensus fideliumperceives something mysterious, beyond our human logic, and realizes that the passion of Christ is not merely an event of the past, but one in which we can share through faith.Meditation on Christ’s self-offering on the cross involves, for Christian piety, something much more than mere remembrance.This conviction has a solid theological grounding.[157]We can also add the recognition of our own sins, which Jesus took upon his bruised shoulders, and our inadequacy in the face of that timeless love, which is always infinitely greater.
    155.We may also question how we can pray to the Lord of life, risen from the dead and reigning in glory, while at the same time comforting him in the midst of his sufferings.Here we need to realize that his risen heart preserves its wound as a constant memory, and that the working of grace makes possible an experience that is not restricted to a single moment of the past.In pondering this, we find ourselves invited to take a mystical path that transcends our mental limitations yet remains firmly grounded in the word of God.Pope Pius XI makes this clear: “How can these acts of reparation offer solace now, when Christ is already reigning in the beatitude of heaven?To this question, we may answer in the words of Saint Augustine, which are very apposite here – ‘Give me the one who loves, and he will understand what I say’.Anyone possessed of great love for God, and who looks back to the past, can dwell in meditation on Christ, and see him labouring for man, sorrowing, suffering the greatest hardships, ‘for us men and for our salvation’, well-nigh worn out with sadness, with anguish, nay ‘bruised for our sins’ (Is53:5), and bringing us healing by those very bruises.The more the faithful ponder all these things the more clearly they see that the sins of mankind, whenever they were committed, were the reason why Christ was delivered up to death”.[158]
    156.Those words of Pius XI merit serious consideration.When Scripture states that believers who fail to live in accordance with their faith “are crucifying again the Son of God” (Heb6:6), or when Paul, offering his sufferings for the sake of others, says that, “in my flesh I am completing what is lacking in Christ’s afflictions” (Col1:24), or again, when Christ in his passion prays not only for his disciples at that time, but also for “those who will believe in me through their word” (Jn17:20), all these statements challenge our usual way of thinking.They show us that it is not possible to sever the past completely from the present, however difficult our minds find this to grasp.The Gospel, in all its richness, was written not only for our prayerful meditation, but also to enable us to experience its reality in our works of love and in our interior life.This is certainly the case with regard to the mystery of Christ’s death and resurrection.The temporal distinctions that our minds employ appear incapable of embracing the fullness of this experience of faith, which is the basis both of our union with Christ in his suffering and of the strength, consolation and friendship that we enjoy with him in his risen life.
    157.We see, then, the unity of the paschal mystery in these two inseparable and mutually enriching aspects.The one mystery, present by grace in both these dimensions, ensures that whenever we offer some suffering of our own to Christ for his consolation, that suffering is illuminated and transfigured in the paschal light of his love.We share in this mystery in our own life because Christ himself first chose to share in that life.He wished to experience first, as Head, what he would then experience in his Body, the Church: both our wounds and our consolations.When we live in God’s grace, this mutual sharing becomes for us a spiritual experience.In a word, the risen Lord, by the working of his grace, mysteriously unites us to his passion.The hearts of the faithful, who experience the joy of the resurrection, yet at the same time desire to share in the Lord’s passion, understand this.They desire to share in his sufferings by offering him the sufferings, the struggles, the disappointments and the fears that are part of their own lives.Nor do they experience this as isolated individuals, since their sufferings are also a participation in the suffering of the mystical Body of Christ, the holy pilgrim People of God, which shares in the passion of Christ in every time and place.The devotion of consolation, then, is in no way ahistorical or abstract; it becomes flesh and blood in the Church’s pilgrimage through history.
    Compunction
    158.The natural desire to console Christ, which begins with our sorrow in contemplating what he endured for us, grows with the honest acknowledgment of our bad habits, compulsions, attachments, weak faith, vain goals and, together with our actual sins, the failure of our hearts to respond to the Lord’s love and his plan for our lives.This experience proves purifying, for love needs the purification of tears that, in the end, leave us more desirous of God and less obsessed with ourselves.
    159.In this way, we see that the deeper our desire to console the Lord, the deeper will be our sincere sense of “compunction”.Compunction is “not a feeling of guilt that makes us discouraged or obsessed with our unworthiness, but a beneficial ‘piercing’ that purifies and heals the heart.Once we acknowledge our sin, our hearts can be opened to the working of the Holy Spirit, the source of living water that wells up within us and brings tears to our eyes…This does not mean weeping in self-pity, as we are so often tempted to do…To shed tears of compunction means seriously to repent of grieving God by our sins; recognizing that we always remain in God’s debt…Just as drops of water can wear down a stone, so tears can slowly soften hardened hearts.Here we see the miracle of sorrow, that ‘salutary sorrow’ which brings great peace…Compunction, then, is not our work but a grace and, as such, it must be sought in prayer.”[159]It means, “asking for sorrow in company with Christ in his sorrow, for anguish with Christ in his anguish, for tears and a deep sense of pain at the great pains that Christ endured for my sake”.[160]
    160.I ask, then, that no one make light of the fervent devotion of the holy faithful people of God, which in its popular piety seeks to console Christ.I also encourage everyone to consider whether there might be greater reasonableness, truth and wisdom in certain demonstrations of love that seek to console the Lord than in the cold, distant, calculated and nominal acts of love that are at times practised by those who claim to possess a more reflective, sophisticated and mature faith.
    Consoled ourselves in order to console others
    161.In contemplating the heart of Christ and his self-surrender even to death, we ourselves find great consolation.The grief that we feel in our hearts gives way to complete trust and, in the end, what endures is gratitude, tenderness, peace; what endures is Christ’s love reigning in our lives.Compunction, then, “is not a source of anxiety but of healing for the soul, since it acts as a balm on the wounds of sin, preparing us to receive the caress of the Lord”.[161]Our sufferings are joined to the suffering of Christ on the cross.If we believe that grace can bridge every distance, this means that Christ by his sufferings united himself to the sufferings of his disciples in every time and place.In this way, whenever we endure suffering, we can also experience the interior consolation of knowing that Christ suffers with us.In seeking to console him, we will find ourselves consoled.
    162.At some point, however, in our contemplation, we should likewise hear the urgent plea of the Lord: “Comfort, comfort my people!” (Is40:1).As Saint Paul tells us, God offers us consolation “so that we may be able to console those who are in any affliction, with the consolation by which we ourselves are consoled by God” (2 Cor1:4).
    163.This then challenges us to seek a deeper understanding of the communitarian, social and missionary dimension of all authentic devotion to the heart of Christ.For even as Christ’s heart leads us to the Father, it sends us forth to our brothers and sisters.In the fruits of service, fraternity and mission that the heart of Christ inspires in our lives, the will of the Father is fulfilled.In this way, we come full circle: “My Father is glorified by this, that you bear much fruit” (Jn15:8).
    CHAPTER FIVE
    LOVE FOR LOVE
    164.In the spiritual experiences of Saint Margaret Mary Alacoque, we encounter, along with an ardent declaration of love for Jesus Christ, a profoundly personal and challenging invitation to entrust our lives to the Lord.The knowledge that we are loved, and our complete confidence in that love, in no way lessens our desire to respond generously, despite our frailty and our many shortcomings.
    A LAMENT AND A REQUEST
    165.Beginning with his second great apparition to Saint Margaret Mary, Jesus spoke of the sadness he feels because his great love for humanity receives in exchange “nothing but ingratitude and indifference”, “coldness and contempt”.And this, he added, “is more grievous to me than all that I endured in my Passion”.[162]
    166.Jesus spoke of his thirst for love and revealed that his heart is not indifferent to the way we respond to that thirst.In his words, “I thirst, but with a thirst so ardent to be loved by men in the Most Blessed Sacrament, that this thirst consumes me; and I have not encountered anyone who makes an effort, according to my desire, to quench my thirst, giving back a return for my love”.[163]Jesus asks for love.Once the faithful heart realizes this, its spontaneous response is one of love, not a desire to multiply sacrifices or simply discharge a burdensome duty: “I received from my God excessive graces of his love, and I felt moved by the desire to respond to some of them and to respond with love for love”.[164]As my Predecessor Leo XIII pointed out, through the image of his Sacred Heart, the love of Christ “moves us to return love for love”.[165]
    EXTENDING CHRIST’S LOVE TO OUR BROTHERS AND SISTERS
    167.We need once more to take up the word of God and to realize, in doing so, that our best response to the love of Christ’s heart is to love our brothers and sisters.There is no greater way for us to return love for love.The Scriptures make this patently clear:
    “Just as you did it to one of the least of these my brethren, you did it to me” (Mt25:40).
    “For the whole law is summed up in a single commandment: ‘You shall love your neighbour as yourself’” (Gal5:14).
    “We know that we have passed from death to life because we love one another. Whoever does not love abides in death” (1Jn3:14).
    “Those who do not love a brother or sister whom they have seen, cannot love God whom they have not seen” (1 Jn4:20).
    168.Love for our brothers and sisters is not simply the fruit of our own efforts; it demands the transformation of our selfish hearts.This realization gave rise to the oft-repeated prayer: “Jesus, make our hearts more like your own”.Saint Paul, for his part, urged his hearers to pray not for the strength to do good works, but “to have the same mind among you that was in Christ Jesus” (Phil2:5).
    169.We need to remember that in the Roman Empire many of the poor, foreigners and others who lived on the fringes of society met with respect, affection and care from Christians.This explains why the apostate emperor Julian, in one of his letters, acknowledged that one reason why Christians were respected and imitated was the assistance they gave the poor and strangers, who were ordinarily ignored and treated with contempt.For Julian, it was intolerable that the Christians whom he despised, “in addition to feeding their own, also feed our poor and needy, who receive no help from us”.[166]The emperor thus insisted on the need to create charitable institutions to compete with those of the Christians and thus gain the respect of society: “There should be instituted in each city many accommodations so that the immigrants may enjoy our philanthropy… and make the Greeks accustomed to such works of generosity”.[167]Julian did not achieve his objective, no doubt because underlying those works there was nothing comparable to the Christian charity that respected the unique dignity of each person.
    170.By associating with the lowest ranks of society (cf.Mt25:31-46), “Jesusbrought the great novelty of recognizing the dignity of every person, especially those who were considered ‘unworthy’.This new principle in human history – which emphasizes that individuals are even more ‘worthy’ of our respect and love when they are weak, scorned, or suffering, even to the point of losing the human ‘figure’ – has changed the face of the world.It has given life to institutions that take care of those who find themselves in disadvantaged conditions, such as abandoned infants, orphans, the elderly who are left without assistance, the mentally ill, people with incurable diseases or severe deformities, and those living on the streets”.[168]
    171.In contemplating the pierced heart of the Lord, who “took our infirmities and bore our diseases” (Mt8:17), we too are inspired to be more attentive to the sufferings and needs of others, and confirmed in our efforts to share in his work of liberation as instruments for the spread of his love.[169]As we meditate on Christ’s self-offering for the sake of all, we are naturally led to ask why we too should not be ready to give our lives for others: “We know love by this, that he laid down his life for us – and that we ought to lay down our lives for one another” (1 Jn3:16).
    ECHOES IN THE HISTORY OF SPIRITUALITY
    172.This bond between devotion to the heart of Jesus and commitment to our brothers and sisters has been a constant in the history of Christian spirituality.Let us consider a few examples.
    Being a fountain from which others can drink
    173.Starting with Origen, various Fathers of the Church reflected on the words of John 7:38 – “out of his heart shall flow rivers of living water” – which refer to those who, having drunk of Christ, put their faith in him.Our union with Christ is meant not only to satisfy our own thirst, but also to make us springs of living water for others.Origen wrote that Christ fulfils his promise by making fountains of fresh water well up within us: “The human soul, made in the image of God, can itself contain and pour forth wells, fountains and rivers”.[170]
    174.Saint Ambrose recommended drinking deeply of Christ, “in order that the spring of water welling up to eternal life may overflow in you”.[171]Marius Victorinus was convinced that the Holy Spirit has given of himself in such abundance that, “whoever receives him becomes a heart that pours forth rivers of living water”.[172]Saint Augustine saw this stream flowing from the believer as benevolence.[173]Saint Thomas Aquinas thus maintained that whenever someone “hastens to share various gifts of grace received from God, living water flows from his heart”.[174]
    175.Although “the sacrifice offered on the cross in loving obedience renders most abundant and infinite satisfaction for the sins of mankind”,[175]the Church, born of the heart of Christ, prolongs and bestows, in every time and place, the fruits of that one redemptive passion, which lead men and women to direct union with the Lord.
    176.In the heart of the Church, the mediation of Mary, as our intercessor and mother, can only be understood as “a sharing in the one source, which is the mediation of Christ himself”,[176]the sole Redeemer.For this reason, “the Church does not hesitate to profess the subordinate role of Mary”.[177]Devotion to the heart of Mary in no way detracts from the sole worship due the heart of Christ, but rather increases it: “Mary’s function as mother of humanity in no way obscures or diminishes this unique mediation of Christ, but rather shows its power”.[178]Thanks to the abundant graces streaming from the open side of Christ, in different ways the Church, the Virgin Mary and all believers become themselves streams of living water.In this way, Christ displays his glory in and through our littleness.
    Fraternity and mysticism
    177.Saint Bernard, in exhorting us to union with the heart of Christ, draws upon the richness of this devotion to call for a conversion grounded in love.Bernard believed that our affections, enslaved by pleasures, may nonetheless be transformed and set free, not by blind obedience to a commandment but rather in response to the delectable love of Christ.Evil is overcome by good, conquered by the flowering of love: “Love the Lord your God with the full and deep affection of all your heart; love him with your mind wholly alert and intent; love him with all your strength, so much so that you would not even fear to die for love of him…Your affection for the Lord Jesus should be both sweet and intimate, to oppose the sweet enticements of the sensual life.Sweetness conquers sweetness, as one nail drives out another”.[179]
    178.Saint Francis de Sales was particularly taken by Jesus’ words, “Learn from me; for I am gentle and humble in heart” (Mt11:29).Even in the most simple and ordinary things, he said, we can “steal” the Lord’s heart.“Those who would serve him acceptably must give heed not only to lofty and important matters, but to things mean and little, since by both alike we may win his heart and love…I mean the acts of daily forbearance, the headache, the toothache, the heavy cold; the tiresome peculiarities of a husband or wife, the broken glass, the loss of a ring, a handkerchief, a glove; the sneer of a neighbour; the effort of going to bed early in order to rise early for prayer or communion, the little shyness some people feel in openly performing religious duties… Be sure that all these sufferings, small as they are, if accepted lovingly, are most pleasing to God’s goodness”.[180]Ultimately, however, our response to the love of the heart of Christ is manifested in love of our neighbour: “a love that is firm, constant, steady, unconcerned with trivial matters or people’s station in life, not subject to changes or animosity…Our Lord loves us unceasingly, puts up with so many of our defects and our flaws.Precisely because of this, we must do the same with our brothers and sisters, never tiring of putting up with them”.[181]
    179.Saint Charles de Foucauld sought to imitate Jesus by living and acting as he did, in a constant effort to do what Jesus would have done in his place.Only by being conformed to the sentiments of the heart of Christ could he fully achieve this goal.Here too we find the idea of “love for love”.In his words, “I desire sufferings in order to return love for love, to imitate him… to enter into his work, to offer myself with him, the nothingness that I am, as a sacrifice, as a victim, for the sanctification of men”.[182]The desire to bring the love of Jesus to others, his missionary outreach to the poorest and most forgotten of our world, led him to take as his emblem the words, “Iesus-Caritas”, with the symbol of the heart of Christ surmounted by a cross.[183]Nor was this a light decision: “With all my strength I try to show and prove to these poor lost brethren that our religion is all charity, all fraternity, and that its emblem is a heart”.[184]He wanted to settle with other brothers “in Morocco, in the name of the heart of Jesus”.[185]In this way, their evangelizing work could radiate outwards: “Charity has to radiate from our fraternities, as it radiates from the heart of Jesus”.[186]This desire gradually made him a “universal brother”.Allowing himself to be shaped by the heart of Christ, he sought to shelter the whole of suffering humanity in his fraternal heart: “Our heart, like that of Jesus, must embrace all men and women”.[187]“The love of the heart of Jesus for men and women, the love that he demonstrated in his passion, this is what we need to have for all human beings”.[188]
    180.Father Henri Huvelin, the spiritual director of Saint Charles de Foucauld, observed that, “when our Lord dwells in a heart, he gives it such sentiments, and this heart reaches out to the least of our brothers and sisters.Such was the heart of Saint Vincent de Paul…When our Lord lives in the soul of a priest, he makes him reach out to the poor”.[189]It is important to realize that the apostolic zeal of Saint Vincent, as Father Huvelin describes it, was also nurtured by devotion to the heart of Christ.Saint Vincent urged his confreres to “find in the heart of our Lord a word of consolation for the poor sick person”.[190]If that word is to be convincing, our own heart must first have been changed by the love and tenderness of the heart of Christ.Saint Vincent often reiterated this conviction in his homilies and counsels, and it became a notable feature of the Constitutions of his Congregation: “We should make a great effort to learn the following lesson, also taught by Christ: ‘Learn from me, for I am gentle and humble of heart’.We should remember that he himself said that by gentleness we inherit the earth.If we act on this, we will win people over so that they will turn to the Lord.That will not happen if we treat people harshly or sharply”.[191]
    REPARATION: BUILDING ON THE RUINS
    181.All that has been said thus far enables us to understand in the light of God’s word the proper meaning of the “reparation” to the heart of Christ that the Lord expects us, with the help of his grace, to “offer”.The question has been much discussed, but Saint John Paul II has given us a clear response that can guide Christians today towards a spirit of reparation more closely attuned to the Gospels.
    The social significance of reparation to the heart of Christ
    182.Saint John Paul explained that by entrusting ourselves together to the heart of Christ, “over the ruins accumulated by hatred and violence, the greatly desired civilization of love, the Kingdom of the heart of Christ, can be built”.This clearly requires that we “unite filial love for God and love of neighbour”, and indeed this is “the true reparation asked by the heart of the Saviour”.[192]In union with Christ, amid the ruins we have left in this world by our sins, we are called to build a new civilization of love.That is what it means to make reparation as the heart of Christ would have us do.Amid the devastation wrought by evil, the heart of Christ desires that we cooperate with him in restoring goodness and beauty to our world.
    183.All sin harms the Church and society; as a result, “every sin can undoubtedly be considered as a social sin” and this is especially true for those sins that “by their very matter constitute a direct attack on one’s neighbour”.[193]Saint John Paul II explained that the repetition of these sins against others often consolidates a “structure of sin” that has an effect on the development of peoples.[194]Frequently, this is part of a dominant mind-set that considers normal or reasonable what is merely selfishness and indifference.This then gives rise to social alienation: “A society is alienated if its forms of social organization, production and consumption make it more difficult to offer the gift of self and to establish solidarity between people”.[195]It is not only a moral norm that leads us to expose and resist these alienated social structures and to support efforts within society to restore and consolidate the common good.Rather, it is our “conversion of heart” that “imposes the obligation”[196]to repair these structures.It is our response to the love of the heart of Jesus, which teaches us to love in turn.
    184.Precisely because evangelical reparation possesses this vital social dimension, our acts of love, service and reconciliation, in order to be truly reparative, need to be inspired, motivated and empowered by Christ.Saint John Paul II also observed that “to build the civilization of love”,[197]our world today needs the heart of Christ.Christian reparation cannot be understood simply as a congeries of external works, however indispensable and at times admirable they may be.These need a “mystique”, a soul, a meaning that grants them strength, drive and tireless creativity.They need the life, the fire and the light that radiate from the heart of Christ.
    Mending wounded hearts
    185.Nor is a merely outward reparation sufficient, either for our world or for the heart of Christ.If each of us considers his or her own sins and their effect on others, we will realize that repairing the harm done to this world also calls for a desire to mend wounded hearts where the deepest harm was done, and the hurt is most painful.
    186.A spirit of reparation thus “leads us to hope that every wound can be healed, however deep it may be.Complete reparation may at times seem impossible, such as when goods or loved ones are definitively lost, or when certain situations have become irremediable.Yet the intention to make amends, and to do so in a concrete way, is essential for the process of reconciliation and a return to peace of heart”.[198]
    The beauty of asking forgiveness
    187.Good intentions are not enough.There has to be an inward desire that finds expression in our outward actions.“Reparation, if it is to be Christian, to touch the offended person’s heart and not be a simple act of commutative justice, presupposes two demanding things:acknowledging our guiltandasking forgiveness…It is from the honest acknowledgment of the wrong done to our brother or sister, and from the profound and sincere realization that love has been compromised, that the desire to make amends arises”.[199]
    188.We should never think that acknowledging our sins before others is somehow demeaning or offensive to our human dignity.On the contrary, it demands that we stop deceiving ourselves and acknowledge our past for what it is, marred by sin, especially in those cases when we caused hurt to our brothers and sisters.“Self-accusation is part of Christian wisdom…It is pleasing to the Lord, because the Lord accepts a contrite heart”.[200]
    189.Part of this spirit of reparation is the custom of asking forgiveness from our brothers and sisters, which demonstrates great nobility amid our human weakness.Asking forgiveness is a means of healing relationships, for it “re-opens dialogue and manifests the will to re-establish the bond of fraternal charity…It touches the heart of our brother or sister, brings consolation and inspires acceptance of the forgiveness requested. Even if the irreparable cannot be completely repaired, love can always be reborn, making the hurt bearable”.[201]
    190.A heart capable of compunction will grow in fraternity and solidarity.Otherwise, “we regress and grow old within”, whereas when “our prayer becomes simpler and deeper, grounded in adoration and wonder in the presence of God, we grow and mature.We become less attached to ourselves and more attached to Christ.Made poor in spirit, we draw closer to the poor, those who are dearest to God”.[202]This leads to a true spirit of reparation, for “those who feel compunction of heart increasingly feel themselves brothers and sisters to all the sinners of the world; renouncing their airs of superiority and harsh judgments, they are filled with a burning desire to show love and make reparation”.[203]The sense of solidarity born of compunction also enables reconciliation to take place.The person who is capable of compunction, “rather than feeling anger and scandal at the failings of our brothers and sisters, weeps for their sins.There occurs a sort of reversal, where the natural tendency to be indulgent with ourselves and inflexible with others is overturned and, by God’s grace, we become strict with ourselves and merciful towards others”.[204]
    REPARATION: AN EXTENSION OF THE HEART OF CHRIST
    191.There is another, complementary, approach to reparation, which allows us to set it in an even more direct relationship with the heart of Christ, without excluding the aspect of concrete commitment to our brothers and sisters.
    192.Elsewhere I have suggested that, “God has in some way sought to limit himself in such a way that many of the things we think of as evils, dangers or sources of suffering, are in reality part of the pains of childbirth which he uses to draw us into the act of cooperation with the Creator”.[205]This cooperation on our part can allow the power and the love of God to expand in our lives and in the world, whereas our refusal or indifference can prevent it.Several passages of the Bible express this metaphorically, as when the Lord cries out, “If only you would return to me, O Israel!” (cf.Jer4:1).Or when, confronted with rejection by his people, he says, “My heart recoils within me; my compassion grows warm and tender” (Hos11:8).
    193.Even though it is not possible to speak of new suffering on the part of the glorified Lord,“the paschal mystery of Christ… and all that Christ is – all that he did and suffered for all men – participates in the divine eternity, and so transcends all times while being made present in them all”.[206]We can say that he has allowed the expansive glory of his resurrection to be limited and the diffusion of his immense and burning love to be contained, in order to leave room for our free cooperation with his heart.Our rejection of his love erects a barrier to that gracious gift, whereas our trusting acceptance of it opens a space, a channel enabling it to pour into our hearts.Our rejection or indifference limits the effects of his power and the fruitfulness of his love in us.If he does not encounter openness and confidence in me, his love is deprived – because he himself has willed it – of its extension, unique and unrepeatable, in my life and in this world, where he calls me to make him present.Again, this does not stem from any weakness on his part but rather from his infinite freedom, his mysterious power and his perfect love for each of us.When God’s power is revealed in the weakness of our human freedom, “only faith can discern it”.[207]
    194.Saint Margaret Mary recounted that, in one of Christ’s appearances, he spoke of his heart’s passionate love for us, telling her that, “unable to contain the flames of his burning charity, he must spread them abroad”.[208]Since the Lord, who can do all things, desired in his divine freedom to require our cooperation, reparation can be understood as our removal of the obstacles we place before the expansion of Christ’s love in the world by our lack of trust, gratitude and self-sacrifice.
    An Oblation to Love
    195.To help us reflect more deeply on this mystery, we can turn once more to the luminous spirituality of Saint Therese of the Child Jesus.Therese was aware that in certain quarters an extreme form of reparation had developed, based on a willingness to offer oneself in sacrifice for others, and to become in some sense a “lightning rod” for the chastisements of divine justice.In her words, “I thought about the souls who offer themselves as victims of God’s justice in order to turn away the punishments reserved to sinners, drawing them upon themselves”.[209]However, as great and generous as such an offering might appear, she did not find it overly appealing: “I was far from feeling attracted to making it”.[210]So great an emphasis on God’s justice might eventually lead to the notion that Christ’s sacrifice was somehow incomplete or only partly efficacious, or that his mercy was not sufficiently powerful.
    196.With her great spiritual insight, Saint Therese discovered that we can offer ourselves in another way, without the need to satisfy divine justice but by allowing the Lord’s infinite love to spread freely: “O my God!Is your disdained love going to remain closed up within your heart?It seems to me that if you were to find souls offering themselves as victims of holocaust to your love, you would consume them rapidly; it seems to me, too, that you would be happy not to hold back the waves of infinite tenderness within you”.[211]
    197.While nothing need be added to the one redemptive sacrifice of Christ, it remains true that our free refusal can prevent the heart of Christ from spreading the “waves of his infinite tenderness” in this world.Again, this is because the Lord wishes to respect our freedom.More than divine justice, it was the fact that Christ’s love might be refused that troubled the heart of Saint Therese, because for her, God’s justice is understood only in the light of his love.As we have seen, she contemplated all God’s perfections through his mercy, and thus saw them transfigured and resplendent with love.In her words, “even his justice (and perhaps this even more so than the others) seems to me clothed in love”.[212]
    198.This was the origin of her Act of Oblation, not to God’s justice but to his merciful love.“I offer myself as a victim of holocaust to your merciful love, asking you to consume me incessantly, allowing the waves of infinite tenderness shut up within you to overflow into my soul, and that thus I may become a martyr of your love”.[213]It is important to realize that, for Therese, this was not only about allowing the heart of Christ to fill her heart, through her complete trust, with the beauty of his love, but also about letting that love, through her life, spread to others and thus transform the world.Again, in her words, “In the heart of the Church, my Mother, I shall be love… and thus my dream will be realized”.[214]The two aspects were inseparably united.
    199.The Lord accepted her oblation.We see that shortly thereafter she stated that she felt an intense love for others and maintained that it came from the heart of Christ, prolonged through her.So she told her sister Léonie: “I love you a thousand times more tenderly than ordinary sisters love each other, for I can love you with the heart of our celestial spouse”.[215]Later, to Maurice Bellière she wrote, “How I would like to make you understand the tenderness of the heart of Jesus, what he expects from you!”[216]
    Integrity and Harmony
    200.Sisters and brothers, I propose that we develop this means of reparation, which is, in a word, to offer the heart of Christ a new possibility of spreading in this world the flames of his ardent and gracious love.While it remains true that reparation entails the desire to “render compensation for the injuries inflicted on uncreated Love, whether by negligence or grave offense”,[217]the most fitting way to do this is for our love to offer the Lord a possibility of spreading, in amends for all those occasions when his love has been rejected or refused.This involves more than simply the “consolation” of Christ of which we spoke in the previous chapter; it finds expression in acts of fraternal love by which we heal the wounds of the Church and of the world.In this way, we offer the healing power of the heart of Christ new ways of expressing itself.
    201.The sacrifices and sufferings required by these acts of love of neighbour unite us to the passion of Christ.In this way, “by that mystic crucifixion of which the Apostle speaks, we shall receive the abundant fruits of its propitiation and expiation, for ourselves and for others”.[218]Christ alone saves us by his offering on the cross; he alone redeems us, for “there is one God; there is also one mediator between God and men, the man Christ Jesus, who gave himself as a ransom for all” (1Tim2:5-6).The reparation that we offer is a freely accepted participation in his redeeming love and his one sacrifice.We thus complete in our flesh “what is lacking in Christ’s afflictions for the sake of his body, that is, the Church” (Col1:24); and Christ himself prolongs through us the effects of his complete and loving self-oblation.
    202.Often, our sufferings have to do with our own wounded ego.The humility of the heart of Christ points us towards the path of abasement.God chose to come to us in condescension and littleness.The Old Testament had already shown us, with a variety of metaphors, a God who enters into the heart of history and allows himself to be rejected by his people.Christ’s love was shown amid the daily life of his people, begging, as it were, for a response, as if asking permission to manifest his glory.Yet “perhaps only once did the Lord Jesus refer to his own heart, in his own words.And he stresses this sole feature: ‘gentleness and lowliness’, as if to say that only in this way does he wish to win us to himself”.[219]When he said, “Learn from me, for I am gentle and humble in heart” (Mt11:29), he showed us that “to make himself known, he needs our littleness, our self-abasement”.[220]
    203.In what we have said, it is important to note several inseparable aspects.Acts of love of neighbour, with the renunciation, self-denial, suffering and effort that they entail, can only be such when they are nourished by Christ’s own love.He enables us to love as he loved, and in this way he loves and serves others through us.He humbles himself to show his love through our actions, yet even in our slightest works of mercy, his heart is glorified and displays all its grandeur.Once our hearts welcome the love of Christ in complete trust, and enable its fire to spread in our lives, we become capable of loving others as Christ did, in humility and closeness to all.In this way, Christ satisfies his thirst and gloriously spreads the flames of his ardent and gracious love in us and through us.How can we fail to see the magnificent harmony present in all this?
    204.Finally, in order to appreciate this devotion in all of its richness, it is necessary to add, in the light of what we have said about its Trinitarian dimension, that the reparation made by Christ in his humanity is offered to the Father through the working of the Holy Spirit in each of us.Consequently, the reparation we offer to the heart of Christ is directed ultimately to the Father, who is pleased to see us united to Christ whenever we offer ourselves through him, with him and in him.
    BRINGING LOVE TO THE WORLD
    205.The Christian message is attractive when experienced and expressed in its totality: not simply as a refuge for pious thoughts or an occasion for impressive ceremonies.What kind of worship would we give to Christ if we were to rest content with an individual relationship with him and show no interest in relieving the sufferings of others or helping them to live a better life?Would it please the heart that so loved us, if we were to bask in a private religious experience while ignoring its implications for the society in which we live?Let us be honest and accept the word of God in its fullness.On the other hand, our work as Christians for the betterment of society should not obscure its religious inspiration, for that, in the end, would be to seek less for our brothers and sisters than what God desires to give them.For this reason, we should conclude this chapter by recalling the missionary dimension of our love for the heart of Christ.
    206.Saint John Paul II spoke of the social dimension of devotion to the heart of Christ, but also about “reparation, which is apostolic cooperation in the salvation of the world”.[221]Consecration to the heart of Christ is thus “to be seen in relation to the Church’s missionary activity, since it responds to the desire of Jesus’ heart to spread throughout the world, through the members of his Body, his complete commitment to the Kingdom”.[222]As a result, “through the witness of Christians, love will be poured into human hearts, to build up the body of Christ which is the Church, and to build a society of justice, peace and fraternity”.[223]
    207.The flames of love of the Sacred Heart of Jesus also expand through the Church’s missionary outreach, which proclaims the message of God’s love revealed in Christ.Saint Vincent de Paul put this nicely when he invited his disciples to pray to the Lord for “this spirit, this heart that causes us to go everywhere, this heart of the Son of God, the heart of our Lord, that disposes us to go as he went…he sends us, like [the apostles], to bring fire everywhere”.[224]
    208.Saint Paul VI, addressing religious Congregations dedicated to the spread of devotion to the Sacred Heart, made the following observation.“There can be no doubt that pastoral commitment and missionary zeal will fan into flame, if priests and laity alike, in their desire to spread the glory of God, contemplate the example of eternal love that Christ has shown us, and direct their efforts to make all men and women sharers in the unfathomable riches of Christ”.[225]As we contemplate the Sacred Heart, mission becomes a matter of love.For the greatest danger in mission is that, amid all the things we say and do, we fail to bring about a joyful encounter with the love of Christ who embraces us and saves us.
    209.Mission, as a radiation of the love of the heart of Christ, requires missionaries who are themselves in love and who, enthralled by Christ, feel bound to share this love that has changed their lives.They are impatient when time is wasted discussing secondary questions or concentrating on truths and rules, because their greatest concern is to share what they have experienced.They want others to perceive the goodness and beauty of the Beloved through their efforts, however inadequate they may be.Is that not the case with any lover?We can take as an example the words with which Dante Alighieri sought to express this logic of love:
    “Io dico che, pensando al suo valore
    amor si dolce si mi si fa sentire,
    che s’io allora non perdessi ardire
    farei parlando innamorar la gente”.[226]
    210.To be able to speak of Christ, by witness or by word, in such a way that others seek to love him, is the greatest desire of every missionary of souls.This dynamism of love has nothing to do with proselytism; the words of a lover do not disturb others, they do not make demands or oblige, they only lead others to marvel at such love.With immense respect for their freedom and dignity, the lover simply waits for them to inquire about the love that has filled his or her life with such great joy.
    211.Christ asks you never to be ashamed to tell others, with all due discretion and respect, about your friendship with him.He asks that you dare to tell others how good and beautiful it is that you found him.“Everyone who acknowledges me before others, I also will acknowledge before my Father in heaven” (Mt10:32).For a heart that loves, this is not a duty but an irrepressible need: “Woe to me if I do not proclaim the Gospel!” (1 Cor9:16).“Within me there is something like a burning fire shut up in my bones; I am weary with holding it in, and I cannot” (Jer20:9).
    In communion of service
    212.We should not think of this mission of sharing Christ as something only between Jesus and me.Mission is experienced in fellowship with our communities and with the whole Church.If we turn aside from the community, we will be turning aside from Jesus.If we turn our back on the community, our friendship with Jesus will grow cold.This is a fact, and we must never forget it.Love for the brothers and sisters of our communities – religious, parochial, diocesan and others – is a kind of fuel that feeds our friendship with Jesus.Our acts of love for our brothers and sisters in community may well be the best and, at times, the only way that we can witness to others our love for Jesus Christ.He himself said, “By this everyone will know that you are my disciples, if you have love for one another” (Jn13:35).
    213.This love then becomes service within the community.I never tire of repeating that Jesus told us this in the clearest terms possible: “Just as you did it to one of the least of these my brethren, you did it to me” (Mt25:40).He now asks you to meet him there, in every one of our brothers and sisters, and especially in the poor, the despised and the abandoned members of society.What a beautiful encounter that can be!
    214.If we are concerned with helping others, this in no way means that we are turning away from Jesus.Rather, we are encountering him in another way.Whenever we try to help and care for another person, Jesus is at our side.We should never forget that, when he sent his disciples on mission, “the Lord worked with them” (Mk16:20).He is always there, always at work, sharing our efforts to do good.In a mysterious way, his love becomes present through our service.He speaks to the world in a language that at times has no need of words.
    215.Jesus is calling you and sending you forth to spread goodness in our world.His call is one of service, a summons to do good, perhaps as a physician, a mother, a teacher or a priest.Wherever you may be, you can hear his call and realize that he is sending you forth to carry out that mission.He himself told us, “I am sending you out” (Lk10:3).It is part of our being friends with him.For this friendship to mature, however, it is up to you to let him send you forth on a mission in this world, and to carry it out confidently, generously, freely and fearlessly.If you stay trapped in your own comfort zone, you will never really find security; doubts and fears, sorrow and anxiety will always loom on the horizon.Those who do not carry out their mission on this earth will find not happiness, but disappointment.Never forget that Jesus is at your side at every step of the way.He will not cast you into the abyss, or leave you to your own devices.He will always be there to encourage and accompany you.He has promised, and he will do it: “For I am with you always, to the end of the age” (Mt28:20).
    216.In your own way, you too must be a missionary, like the apostles and the first disciples of Jesus, who went forth to proclaim the love of God, to tell others that Christ is alive and worth knowing.Saint Therese experienced this as an essential part of her oblation to merciful Love: “I wanted to give my Beloved to drink and I felt myself consumed with a thirst for souls”.[227]That is your mission as well.Each of us must carry it out in his or her own way; you will come to see how you can be a missionary.Jesus deserves no less.If you accept the challenge, he will enlighten you, accompany you and strengthen you, and you will have an enriching experience that will bring you much happiness.It is not important whether you see immediate results; leave that to the Lord who works in the secret of our hearts.Keep experiencing the joy born of our efforts to share the love of Christ with others.
    CONCLUSION
    217.The present document can help us see that the teaching of the social EncyclicalsLaudato Si’andFratelli Tuttiis not unrelated to our encounter with the love of Jesus Christ.For it is by drinking of that same love that we become capable of forging bonds of fraternity, of recognizing the dignity of each human being, and of working together to care for our common home.
    218.In a world where everything is bought and sold, people’s sense of their worth appears increasingly to depend on what they can accumulate with the power of money.We are constantly being pushed to keep buying, consuming and distracting ourselves, held captive to a demeaning system that prevents us from looking beyond our immediate and petty needs.The love of Christ has no place in this perverse mechanism, yet only that love can set us free from a mad pursuit that no longer has room for a gratuitous love.Christ’s love can give a heart to our world and revive love wherever we think that the ability to love has been definitively lost.
    219.The Church also needs that love, lest the love of Christ be replaced with outdated structures and concerns, excessive attachment to our own ideas and opinions, and fanaticism in any number of forms, which end up taking the place of the gratuitous love of God that liberates, enlivens, brings joy to the heart and builds communities.The wounded side of Christ continues to pour forth that stream which is never exhausted, never passes away, but offers itself time and time again to all those who wish to love as he did.For his love alone can bring about a new humanity.
    220.I ask our Lord Jesus Christ to grant that his Sacred Heart may continue to pour forth the streams of living water that can heal the hurt we have caused, strengthen our ability to love and serve others, and inspire us to journey together towards a just, solidary and fraternal world.Until that day when we will rejoice in celebrating together the banquet of the heavenly kingdom in the presence of the risen Lord, who harmonizes all our differences in the light that radiates perpetually from his open heart.May he be blessed forever.
    Given in Rome, at Saint Peter’s, on 24 October of the year 2024, the twelfth of my Pontificate.
    FRANCIS
    ______________________________
    [1]Many of the reflections in this first chapter were inspired by the unpublished writings of the late Father Diego Fares, S.J.May the Lord grant him eternal rest.
    [2]Cf. HOMER,Iliad, XXI, 441.
    [3]Cf.Iliad, X, 244.
    [4]Cf. PLATO,Timaeus, 65 c-d; 70.
    [5]Homily at Morning Mass in Domus Sanctae Marthae, 14 October 2016:L’Osservatore Romano, 15 October 2016, p. 8.
    [6]SAINT JOHN PAUL II,Angelus, 2 July 2000:L’Osservatore Romano, 3-4 July 2000, p. 4.
    [7]ID.,Catechesis, 8 June 1994:L’Osservatore Romano, 9 June 1994, p. 5.
    [8]The Demons(1873).
    [9]ROMANO GUARDINI,Religiöse Gestalten in Dostojewskijs Werk, Mainz/Paderborn, 1989, pp. 236ff.
    [10]KARL RAHNER,“Some Theses for a Theology of Devotion to the Sacred Heart”, inTheological Investigations, vol. III, Baltimore-London, 1967, p. 332.
    [11]Ibid., p. 333.
    [12]BYUNG-CHUL HAN,Heideggers Herz.Zum Begriff der Stimmung bei Martin Heidegger, München, 1996, p. 39.
    [13]Ibid., p. 60; cf. p. 176.
    [14]Cf. ID.,Agonie des Eros, Berlin, 2012.
    [15]Cf. MARTIN HEIDEGGER,Erläuterungen zu Hölderlins Dichtung, Frankfürt a. M., 1981, p. 120.
    [16]Cf. MICHEL DE CERTEAU,L’espace du désir ou le «fondement» des Exercises Spirituels:Christus77 (1973), pp. 118-128.
    [17]Itinerarium Mentis in Deum, VII, 6.
    [18]ID.,Proemium in I Sent.,q. 3.
    [19]SAINT JOHN HENRY NEWMAN,Meditations and Devotions, London, 1912, Part III [XVI], par. 3, pp. 573-574.
    [20]Pastoral ConstitutionGaudium et Spes, 82.
    [21]Ibid., 10.
    [22]Ibid., 14.
    [23]Cf.DICASTERY FOR THE DOCTRINE OF THE FAITH, DeclarationDignitas Infinita(2 April 2024), 8.Cf.L’Osservatore Romano, 8 April 2024.
    [24]Pastoral ConstitutionGaudium et Spes, 26.
    [25]SAINT JOHN PAUL II,Angelus, 28 June 1998:L’Osservatore Romano, 30 June-1 July 1998, p. 7.
    [26]Encyclical LetterLaudato Si’(24 May 2015),83: AAS 107 (2015), 880.
    [27]Homily at Morning Mass in Domus Sanctae Marthae, 7 June 2013:L’Osservatore Romano, 8 June 2013, p. 8.
    [28]PIUS XII, Encyclical LetterHaurietis Aquas(15 May 1956), I: AAS 48 (1956), 316.
    [29]PIUS VI, ConstitutionAuctorem Fidei(28 August 1794), 63: DH 2663.
    [30]LEO XIII,Encyclical LetterAnnum Sacrum(25 May 1899): ASS 31 (1898-1899), 649.
    [31]Ibid:“Inest in Sacro Corde symbolum et expressa imago infinitæ Iesu Christi caritatis”.
    [32]Angelus, 9 June 2013:L’Osservatore Romano, 10-11 June 2013, p. 8.
    [33]We canthus understand why the Church has forbidden placing on the altar representations of the heart of Jesus or Mary alone (cf. Response of the Congregation of Sacred Rites to the Reverend Charles Lecoq, P.S.S., 5 April 1879:Decreta Authentica Congregationis Sacrorum Rituum ex Actis ejusdem Collecta, vol. III, 107-108, n. 3492).Outside the liturgy, “for private devotion” (ibid.), the symbolism of a heart can be used as a teaching aid, an aesthetic figure or an emblem that invites one to meditate on the love of Christ, but this risks taking the heart as an object of adoration or spiritual dialogue apart from the Person of Christ.On 31 March 1887, the Congregation gave another, similar response (ibid., 187, n. 3673).
    [34]ECUMENICAL COUNCIL OF TRENT, Session XXV, DecreeMandat Sancta Synodus(3 December 1563): DH 1823.
    [35]FIFTH GENERAL CONFERENCE OF THE LATIN AMERICAN AND CARIBBEAN BISHOPS,Aparecida Document(29 June 2007), n. 259.
    [36]Encyclical LetterHaurietis Aquas(15 May 1956), I: AAS 48 (1956), 323-324.
    [37]Ep. 261, 3: PG 32, 972.
    [38]In Io. homil.63, 2: PG 59, 350.
    [39]De fide ad Gratianum, II, 7, 56: PL 16, 594 (ed. 1880).
    [40]Enarr. in Ps. 87, 3: PL 37, 1111.
    [41]Cf.De fide orth. 3, 6, 20: PG 94, 1006, 1081.
    [42]OLEGARIO GONZÁLEZ DE CARDEDAL,La entraña del cristianismo, Salamanca, 2010, 70-71.
    [43]Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [44]PIUS XII, Encyclical LetterHaurietis Aquas(15 May 1956), II: AAS 48 (1956), 327-328.
    [45]Ibid.: AAS 48 (1956), 343-344.
    [46]BENEDICT XVI,Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [47]VIGILIUS,ConstitutionInter Innumeras Sollicitudines(14 May 553):DH 420.
    [48]ECUMENICAL COUNCIL OF EPHESUS,Anathemas of Cyril of Alexandria, 8: DH 259.
    [49]SECOND ECUMENICAL COUNCIL OF CONSTANTINOPLE, Session VIII (2 June 553), Canon 9: DH 431.
    [50]SAINT JOHN OF THE CROSS,Spiritual Canticle, red.A, Stanza 22, 4.
    [51]Ibid., Stanza 12, 8.
    [52]Ibid., Stanza 12, 1.
    [53]“There is one God, the Father, from whom are all things and for whom we exist” (1 Cor8:6).“To our God and Father be glory forever and ever. Amen”(Phil4:20).“Blessed be the God and Father of our Lord Jesus Christ, the Father of mercies and the God of all consolation”(2 Cor1:3).
    [54]Apostolic LetterTertio Millennio Adveniente(10 November 1994), 49: AAS 87 (1995), 35.
    [55]Ad Rom., 7: PG 5, 694.
    [56]“That the world may know that I love the Father” (Jn14:31); “The Father and I are one” (Jn10:30); “I am in the Father and the Father is in me” (Jn14:10).
    [57]“Iam going to the Father” (pros ton Patéra:Jn16:28).“I am coming to you” (pros se:Jn17:11).
    [58]“eis ton kolpon tou Patrós”.
    [59]Adv. Haer., III, 18, 1: PG 7, 932.
    [60]In Joh.II, 2: PG 14, 110.
    [61]Angelus, 23 June 2002:L’Osservatore Romano, 24-25 June 2002, p. 1.
    [62]SAINT JOHN PAUL II,Message on the Hundredth Anniversary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus, 3:L’Osservatore Romano, 12 June 1999, p. 5.
    [63]ID.,Angelus, 8 June 1986:L’Osservatore Romano, 9-10 June 1986, p. 5
    [64]Homily, Visit to the Gemelli Hospital and to the Faculty of Medicine of the Catholic University of the Sacred Heart, 27 June 2014:L’Osservatore Romano, 29 June 2014, p. 7.
    [65]Eph1:5, 7; 2:18; 3:12.
    [66]Eph2:5, 6; 4:15.
    [67]Eph1:3, 4, 6, 7, 11, 13, 15; 2:10, 13, 21, 22; 3:6, 11, 21.
    [68]Message on the Hundredth Anniversary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus, 2:L’Osservatore Romano, 12 June 1999, p. 5.
    [69]“Since there is in the Sacred Heart a symbol and the express image of the infinite love of Jesus Christ that moves us to love one another, it is fit and proper that we should consecrate ourselves to his most Sacred Heart – an act that is nothing else than an offering and a binding of oneself to Jesus Christ, for whatever honour, veneration and love is given to this divine Heart is really and truly given to Christ himself…And now, today, behold another blessed and heavenly token is offered to our sight – the most Sacred Heart of Jesus, with a cross rising from it and shining forth with dazzling splendour amidst flames of love.In that Sacred Heart all our hopes should be placed, and from it the salvation of men is to be confidently besought” (Encyclical LetterAnnum Sacrum[25 May 1899]: ASS 31 [1898-1899], 649, 651).
    [70]“For is not the sum of all religion and therefore the pattern of more perfect life, contained in that most auspicious sign and in the form of piety that follows from it inasmuch as it more readily leads the minds of men to an intimate knowledge of Christ our Lord, and more efficaciously moves their hearts to love him more vehemently and to imitate him more closely?”(Encyclical LetterMiserentissimus Redemptor[8 May 1928]: AAS 20 [1928], 167).
    [71]“For it is perfectly clear that this devotion, if we examine its proper nature, is a most excellent act of religion, inasmuch as it demands the full and absolute determination of surrendering and consecrating oneself to the love of the divine Redeemer whose wounded heart is the living sign and symbol of that love…In it, we can contemplate not only the symbol, but also, as it were, the synthesis of the whole mystery of our redemption…Christ expressly and repeatedly pointed to his heart as the symbol by which men are drawn to recognize and acknowledge his love, and at the same time constituted it as the sign and pledge of his mercy and his grace for the needs of the Church in our time” (Encyclical LetterHaurietis Aquas[15 May 1956], Proemium, III, IV: AAS 48 [1956], 311, 336, 340).
    [72]Catechesis, 8 June 1994, 2:L’Osservatore Romano, 9 June 1994, p. 5.
    [73]Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [74]Encyclical LetterHaurietis Aquas(15 May 1956), IV: AAS 48 (1956), 344.
    [75]Cf.ibid.: AAS 48 (1956), 336.
    [76]“The value of private revelations is essentially different from that of the one public revelation: the latter demands faith…A private revelation… is a help which is proffered, but its use is not obligatory” (BENEDICT XVI, Apostolic ExhortationVerbum Domini[30 September 2010], 14: AAS 102 [2010]), 696).
    [77]Encyclical LetterHaurietis Aquas(15 May 1956), IV: AAS 48 (1956), 340.
    [78]Ibid.: AAS 48 (1956), 344.
    [79]Ibid.
    [80]Apostolic ExhortationC’est la Confiance(15 October 2023), 20:L’Osservatore Romano, 16 October 2023.
    [81]SAINT THERESE OF THE CHILD JESUS,Autobiography, Ms A, 83v°.
    [82]SAINT MARIA FAUSTINA KOWALSKA,Diary, 47 (22 February 1931),Marian Press, Stockbridge, 2011, p. 46.
    [83]Mishnah Sukkah, IV, 5, 9.
    [84]Letter to the Superior General of the Society of Jesus, Paray-le-Monial (France), 5 October 1986:L’Osservatore Romano, 7 October 1986, p. IX.
    [85]Acta Martyrum Lugdunensium, in EUSEBIUS OF CAESARIA,Historia Ecclesiastica, V, 1: PG 20, 418.
    [86]RUFINUS, V, 1, 22, in GCS,EusebiusII, 1, p. 411, 13ff.
    [87]SAINT JUSTIN,Dial.135,3: PG 6, 787
    [88]NOVATIAN,De Trinitate, 29: PL 3, 994; cf. SAINT GREGORY OF ELVIRA,Tractatus Origenis de libris Sanctarum Scripturarum, XX, 12: CSSL 69, 144.
    [89]Expl. Ps.1:33: PL 14, 983-984.
    [90]Cf.Tract. in Ioannem61, 6: PL 35, 1801.
    [91]Ep. ad Rufinum, 3, 4.3: PL 22, 334.
    [92]Sermones in Cant.61, 4: PL 183, 1072.
    [93]Expositio altera super Cantica Canticorum, c. 1: PL 180, 487.
    [94]WILLIAM OF SAINT-THIERRY,De natura et dignitate amoris, 1: PL 184, 379.
    [95]ID.,Meditivae Orationes, 8, 6: PL 180, 230.
    [96]SAINT BONAVENTURE,Lignum Vitae.De mysterio passionis, 30.
    [97]Ibid., 47.
    [98]Legatus divinae pietatis, IV, 4, 4: SCh 255, 66.
    [99]LÉON DEHON,Directoire spirituel des prêtres su Sacré Cœur de Jésus, Turnhout, 1936, II, ch. VII, n. 141.
    [100]Dialogue on Divine Providence, LXXV: FIORILLI M.-CARAMELLA S., eds., Bari, 1928, 144.
    [101]Cf., for example, ANGELUS WALZ,De veneratione divini cordis Iesu in Ordine Praedicatorum, Pontificium Institutum Angelicum, Rome, 1937.
    [102]RAFAEL GARCÍA HERREROS, Vida de San Juan Eudes, Bogotá, 1943, 42.
    [103]SAINT FRANCIS DE SALES,Letter to Jane Frances de Chantal, 24 April 1610.
    [104]Sermon forthe Second Sunday of Lent, 20 February 1622.
    [105]Letter to Jane Frances de Chantal, Solemnity of the Ascension, 1612.
    [106]Letter to Marie Aimée de Blonay, 18 February 1618.
    [107]Letter to Jane Frances de Chantal, late November 1609.
    [108]Letter to Jane Frances de Chantal, ca. 25 February 1610.
    [109]Entretien XIV, on religious simplicity and prudence.
    [110]Letter to Jane Frances de Chantal,10 June 1611.
    [111]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 53.
    [112]Ibid.
    [113]Ibid., n. 55.
    [114]Cf. DICASTERY FOR THE DOCTRINE OF THE FAITH,Norms for Proceeding in the Discernment of Alleged Supernatural Phenomena, 17 May 2024, I, A, 12.
    [115]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 92.
    [116]Letter to Sœur de la Barge, 22 October 1689.
    [117]Autobiography, n. 53.
    [118]Ibid., n. 55.
    [119]Sermon on Trust in God, inŒuvres du R.P de La Colombière, t. 5, Perisse, Lyon, 1854, p. 100.
    [120]Spiritual Exercises in London, 1-8 February 1677, inŒuvres du R.P de La Colombière, t. 7, Seguin, Avignon, 1832, p. 93.
    [121]Spiritual Exercises in Lyon, October-November 1674, ibid., p. 45.
    [122]SAINT CHARLES DE FOUCAULD,Letter to Madame de Bondy, 27 April 1897.
    [123]Letter to Madame de Bondy, 28 April 1901.Cf.Letter to Madame de Bondy, 5 April 1909: “Through you I came to know the adoration of the Blessed Sacrament, the benedictions and the Sacred Heart”.
    [124]Letter to Madame de Bondy, 7 April 1890.
    [125]Letter to l’Abbé Huvelin, 27 June 1892.
    [126]SAINT CHARLES DE FOUCAULD,Méditations sur l’Ancien Testament (1896-1897), XXX, 1-21.
    [127]ID.,Letter to l’Abbé Huvelin, 16 May 1900.
    [128]ID.,Diary, 17 May 1906.
    [129]Letter 67 to Mme. Guérin, 18 November 1888.
    [130]Letter 122 to Céline, 14 October 1890.
    [131]Poem 23, “To the Sacred Heart of Jesus”, June or October 1895.
    [132]Letter 247 to l’Abbé Maurice Bellière, 21 June 1897.
    [133]Last Conversations. Yellow Notebook, 11 July 1897, 6.
    [134]Letter 197 to Sister Marie of the Sacred Heart, 17 September 1896.This does not mean that Therese did not offer sacrifices, sorrows and troubles as a way of associating herself with the suffering of Christ, but that, in the end, she was concerned not to give these offerings an importance they did not have.
    [135]Letter 142 to Céline, 6 July 1893.
    [136]Letter 191 to Léonie, 12 July 1896.
    [137]Letter 226 to Father Roulland, 9 May 1897.
    [138]Letter 258 to l’Abbé Maurice Bellière, 18 July 1897.
    [139]Cf. SAINT IGNATIUS LOYOLA,Spiritual Exercises, 104.
    [140]Ibid., 297.
    [141]Cf.Letter to Ignatius Loyola, 23 January 1541.
    [142]De Vita P. Ignatii et Societatis Iesu initiis, ch. 8.96.
    [143]Spiritual Exercises, 54.
    [144]Ibid., 230ff.
    [145]THIRTY-THIRD GENERAL CONGREGATION OF THE SOCIETY OF JESUS, Decree 46, 1:Institutum Societatis Iesu, 2, Florence, 1893, 511.
    [146]In Him Alone is Our Hope. Texts on the Heart of Christ, St. Louis, 1984.
    [147]Letter to the Superior General of the Society of Jesus, Paray-le-Monial, 5 October 1986:L’Osservatore Romano, 6 October 1986, p. 7.
    [148]Conference to Priests, “Poverty”, 13 August 1655.
    [149]Conference to the Daughters of Charity, “Mortification, Correspondence, Meals and Journeys (Common Rules,art. 24-27), 9 December 1657.
    [150]SAINT DANIELE COMBONI,Gli scritti,Bologna, 1991, 998 (n. 3324).
    [151]Homily at the Mass of Canonization, 18 May 2003:L’Osservatore Romano, 19-20 May 2003, p. 6.
    [152]SAINT JOHN PAUL II, Encyclical LetterDives in Misericordia(30 November 1980), 1: AAS 72 (1980), 1219.
    [153]ID.,Catechesis, 20 June 1979:L’Osservatore Romano, 22 June 1979, 1.
    [154]COMBONIAN MISSIONARIES OF THE HEART OF JESUS,Rule of Life, 3.
    [155]SOCIETY OF THE SACRED HEART,Constitutions of 1982, 7.
    [156]Encyclical LetterMiserentissimus Redemptor(8 May 1928): AAS 20 (1928), 174.
    [157]The believer’s act of faith has as its object not simply the doctrine proposed, but also union with Christ himself in the reality of his divine life (cf. SAINT THOMAS AQUINAS,Summa Theologiae, II-II, q. 1, a. 2, ad 2; q. 4, a. 1).
    [158]PIUS XI, Encyclical LetterMiserentissimus Redemptor(8 May 1928): AAS 20 (1928), 174.
    [159]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [160]SAINT IGNATIUS LOYOLA,Spiritual Exercises, 203.
    [161]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [162]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 55.
    [163]Letter 133 to Father Croiset.
    [164]Autobiography, n. 92.
    [165]Encyclical LetterAnnum Sacrum(25 May 1899): ASS 31 (1898-1899), 649.
    [166]IULIANUS IMP.,Ep. XLIX ad Arsacium Pontificem Galatiae, Mainz, 1828, 90-91.
    [167]Ibid.
    [168]DICASTERY FOR THE DOCTRINE OF THE FAITH, DeclarationDignitas Infinita(2 April 2024), 19:L’Osservatore Romano, 8 April 2024.
    [169]Cf. BENEDICT XVI,Letter to the Superior General of the Society of Jesus on the Fiftieth Anniversary of the Encyclical“Haurietis Aquas”(15 May 2006): AAS 98 (2006), 461.
    [170]In Num. homil.12, 1: PG 12, 657.
    [171]Epist. 29, 24: PL 16, 1060.
    [172]Adv.Arium1, 8: PL 8, 1044.
    [173]Tract. in Joannem32, 4: PL 35, 1643.
    [174]Expos. in Ev. S. Joannis, cap. VII, lectio 5.
    [175]PIUS XII, Encyclical LetterHaurietis Aquas, 15 May 1956: AAS 48 (1956), 321.
    [176]SAINT JOHN PAUL II, Encyclical LetterRedemptoris Mater(25 March 1987), 38: AAS 79 (1987), 411.
    [177]SECOND VATICAN ECUMENICAL COUNCIL, Dogmatic ConstitutionLumen Gentium, 62.
    [178]Ibid., 60.
    [179]Sermones super Cant.,XX, 4: PL 183, 869.
    [180]Introduction to the Devout Life, Part III, xxxv.
    [181]Sermon for the XVII Sunday after Pentecost.
    [182]Écrits spirituels, Paris 1947, 67.
    [183]After 19 March 1902, all his letters begin with the wordsJesus Caritasseparated by a heart surmounted by the cross.
    [184]Letter to l’Abbé Huvelin, 15 July 1904.
    [185]Letter to Dom Martin, 25 January 1903.
    [186]Cited in RENÉVOILLAUME, Les fraternités du Père de Foucauld, Paris, 1946, 173.
    [187]Méditations des saints Évangiles sur les passages relatifs à quinze vertus, Nazareth, 1897-1898,Charité(Mt13:3), 60.
    [188]Ibid.,Charité(Mt22:1), 90.
    [189]H. HUVELIN,Quelques directeurs d’âmes au XVII siècle, Paris, 1911, 97.
    [190]Conference, “Service of the Sick and Care of One’s own Health”, 11 November 1657.
    [191]Common Rules of the Congregation of the Mission, 17 May 1658, c. 2, 6.
    [192]Letter to the Superior General of the Society of Jesus, Paray-le-Monial, 5 October 1986:L’Osservatore Romano, 6 October 1986, p. 7.
    [193]SAINT JOHN PAUL II, Post-Synodal Apostolic ExhortationReconciliatio et Paenitentia(2 December 1984), 16: AAS 77 (1985), 215.
    [194]Cf. Encyclical LetterSollicitudo Rei Socialis(30 December 1987), 36: AAS 80 (1988), 561-562.
    [195]Encyclical LetterCentesimus Annus(1 May 1991), 41: AAS 83 (1991), 844-845.
    [196]Catechism of the Catholic Church, 1888.
    [197]Catechesis, 8 June 1994, 2:L’Osservatore Romano, 4 May 1994, p. 5.
    [198]Address to the Participants in the International Colloquium “Réparer L’Irréparable”, on the 350thAnniversary of the Apparitions of Jesus in Paray-le-Monial, 4 May 2024:L’Osservatore Romano, 4 May 2024, p. 12.
    [199]Ibid.
    [200]Homily at Morning Mass in Domus Sanctae Marthae, 6 March 2018:L’Osservatore Romano, 5-6 March 2018, p. 8.
    [201]Address to the Participants in the International Colloquium “Réparer L’Irréparable”, on the 350thAnniversary of the Apparitions of Jesus in Paray-le-Monial, 4 May 2024:L’Osservatore Romano, 4 May 2024, p. 12.
    [202]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [203]Ibid.
    [204]Ibid.
    [205]Encyclical LetterLaudato Si’(24 May 2015), 80: AAS 107 (2015), 879.
    [206]Catechism of the Catholic Church, No. 1085.
    [207]Ibid., No. 268.
    [208]Autobiography, n. 53.
    [209]Ms A, 84r.
    [210]Ibid.
    [211]Ibid.
    [212]Ms A, 83v.; cf.Letter 226 to Father Roulland, 9 May 1897.
    [213]Act of Oblation to Merciful Love, 9 June 1895, 2r-2v.
    [214]Ms B, 3v.
    [215]Letter 186 to Léonie,11 April 1896.
    [216]Letter 258 to l’Abbé Bellière, 18 July 1897.
    [217]Cf. PIUS XI, Encyclical LetterMiserentissimus Redemptor, 8 May 1928: AAS 20 (1928), 169.
    [218]Ibid.: AAS 20 (1928), 172.
    [219]SAINT JOHN PAUL II, Catechesis, 20 June 1979:L’Osservatore Romano, 22 June 1979, p. 1.
    [220]Homily at Mass in Domus Sanctae Marthae, 27 June 2014:L’Osservatore Romano, 28 June 2014, p. 8.
    [221]Message for the Centenary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus.L’Osservatore Romano, 12 June 1999, p. 5.
    [222]Ibid.
    [223]Letter to the Archbishop of Lyon on the occasion of the Pilgrimage of Paray-le-Monial for the Centenary of the Consecration of the Human Race to the Divine Heart of Jesus, 4 June 1999:L’Osservatore Romano, 12 June 1999, p. 4.
    [224]Conference,“Repetition of Prayer”, 22 August 1655.
    [225]LetterDiserti interpretes(25 May 1965), 4:Enchiridion della Vita Consacrata, Bologna-Milano, 2001, n. 3809.
    [226]Vita NuovaXIX, 5-6: “I declare that, in thinking of its worth, love so sweet makes me feel that, if my courage did not fail me, I would speak out and make everyone else fall in love”.
    [227] Ms A, 45v.

    MIL OSI Europe News

  • MIL-OSI China: World Internet Conference Wuzhen Summit to open in November

    Source: China State Council Information Office 2

    The 2024 World Internet Conference (WIC) Wuzhen Summit is scheduled to take place from Nov. 19 to 22 in the water-town of Wuzhen, located in east China’s Zhejiang Province, and will feature four key highlights, according to a press conference held on Thursday.
    During this year’s summit, a distinguished contribution award will be established to recognize individuals and companies who have made outstanding contributions to the field of the global internet.
    Under the WIC framework, the summit will also see the establishment of a special committee on artificial intelligence (AI), the launch of a think tank cooperation program, and the creation of an international digital training institute.
    Themed “Embracing a People-centered and AI-for-good Digital Future — Building a Community with a Shared Future in Cyberspace,” the 2024 edition will feature 24 sub-forums on topics such as Global Development Initiative, digital economy, and data governance, as well as a series of activities.
    Since 2014, the Wuzhen Summit has been successfully held for ten consecutive years. Currently, the WIC includes about 170 institutions, organizations, companies, and individuals from over 30 countries and regions across six continents as its members.

    MIL OSI China News

  • MIL-OSI Europe: Calling Businesses in the Retail and Hospitality Sectors – Register NOW for the €4,000 Power Up grant

    Source: Government of Ireland – Department of Jobs Enterprise and Innovation

    Businesses will receive an email from their Local Authorities with details on how to register

    Today the Minister for Enterprise, Trade and Employment, Peter Burke TD, has announced the opening of the Power Up grant, through an online portal accessible via the Department’s website: enterprise.gov.ie/powerup

    Speaking about the Power Up grant, Minister Peter Burke said:

    “I am very aware of the struggles that businesses in the hospitality and retail sectors continue to face.  The Power Up grant has a budget of €170 million and is available to businesses that received a second payment under the Increased Cost of Business Scheme.  We know that input costs have increased, and this flat payment will go some way to help with rising costs associated with running your businesses during the busy Christmas period.

    “Registrations for the Power Up grant are open from today.  In order to get payments out to our shops, to our small restaurants, to our cafes and to our pubs before the end of the year, I am strongly urging businesses to register without delay.  Local Authorities are emailing businesses that qualify with details on how to register as we speak, so all business owners need to check their emails and find their link.

    “I want to thank the Local Authorities for their tremendous work in administering these grants on behalf of my Department. They are the closest arm of the state to many of our businesses and have direct links in to businesses at a local level.”

    Retail and Hospitality businesses who received the second ICOB payment can register for the €4,000 one-off Power Up grant, once they receive their email from their Local Authority.  This grant will be similar to the ICOB scheme and registration has been specifically designed to be quick and easy.  The Local Authority network is administering this scheme on behalf of the Department of Enterprise, Trade and Employment.

    Minister of State for Trade Promotion, Digital Transformation and Company Regulation, Dara Calleary TD said:

    “The Power Up grant is paid directly into a business’s bank account, a direct injection of cashflow, which we know is imperative for our small family-run businesses.  They are a crucial part of our towns and our villages around Ireland and I urge eligible businesses to register and avail of this grant.” 

    “The Increased Cost of Business (ICOB) Scheme has successfully paid out over €244m to 75,000 SMEs, including two payments to over 38,000 SMEs in the retail and hospitality sector.”

    Minister of State for Business, Employment and Retail, Emer Higgins TD stated:

    “The Government has allocated €170 million in cash supports specifically for the retail and hospitality sectors as part of the budget process.  This Department has already paid out over €244 million through the Increased Cost of Business Grant this summer to SMEs, so this further grant will bring Government’s direct support into small businesses this year to almost a half a billion euro.”

    The deadline for registrations is 8 November 2024.

    ENDS

    MIL OSI Europe News

  • MIL-OSI USA: Disaster Recovery Center Opening in Spartanburg County

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center Opening in Spartanburg County

    Disaster Recovery Center Opening in Spartanburg County

    A Disaster Recovery Center will open in Spartanburg County to provide in-person assistance to South Carolinians affected by Hurricane Helene.  Spartanburg CountySpartanburg Emergency Management175 Community College DriveSpartanburg, SC 29303Open Oct. 24-Nov. 6, 8 a.m.- 7 p.m.  Additional Disaster Recovery Centers are scheduled to open in other South Carolina counties. Click here to find centers that are already open in South Carolina. You can visit any open center to meet with representatives of FEMA, the state of South Carolina and the U.S. Small Business Administration. No appointment is needed. To find all other center locations, including those in other states, go to fema.gov/drc or text “DRC” and a Zip Code to 43362. Homeowners and renters in Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Beaufort, Cherokee, Chester, Edgefield, Fairfield, Greenville, Greenwood, Hampton, Jasper, Kershaw, Laurens, Lexington, McCormick, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Union and York counties and the Catawba Indian Nation can apply for federal assistance.The quickest way to apply is to go online to DisasterAssistance.gov. You can also apply using the FEMA App for mobile devices or calling toll-free 800-621-3362. The telephone line is open every day and help is available in many languages. If you use a relay service, such as Video Relay Service (VRS), captioned telephone or other service, give FEMA your number for that service. For a video with American Sign Language, voiceover and open captions about how to apply for FEMA assistance, select this link.FEMA programs are accessible to survivors with disabilities and others with access and functional needs. 
    kwei.nwaogu
    Thu, 10/24/2024 – 11:58

    MIL OSI USA News

  • MIL-OSI United Nations: Secretary-General’s remarks to the 16th BRICS Summit [as delivered]

    Source: United Nations secretary general

    Excellencies, ladies and gentlemen,
     
    I am grateful to participate in the 16th BRICS Summit. 
     
    Collectively, your countries represent nearly half of the world’s population.
     
    And I salute your valuable commitment and support for international problem-solving as clearly reflected in your theme this year.
     
    But no single group and no single country can act alone or in isolation.
     
    It takes a community of nations, working as one global family, to address global challenges.
     
    Challenges like the rising number of conflicts.
     
    The devastation of climate change, pollution and biodiversity loss…
     
    Rising inequalities and lingering poverty and hunger…
     
    A debt crisis that threatens to smother plans for the future of many vulnerable countries… 
     
    The fact that fewer than one-fifth of the Sustainable Development Goals are on-track…
     
    A growing digital divide, and a lack of guardrails for artificial intelligence and other frontier technologies…
     
    And a lack of representation and voice for developing countries at global decision-making tables. From the Security Council to the Bretton-Woods institution and beyond. This must change.
     
    September’s Summit of the Future offered a roadmap for strengthening multilateralism, and advancing peace, sustainable development and human rights.
     
    I see four areas for action.
     
    First — finance.
     
    Today’s international financial system is not offering many vulnerable countries the safety net or level of support they need.
     
    The Pact for the Future calls for accelerating reform of the international financial architecture that is outdated, ineffective and unfair.
     
    And it includes a commitment to move forward with an SDG Stimulus to change the business model to substantially increase the lending capacity of Multilateral Development Banks to developing countries.
     
    To recycle more Special Drawing Rights…
     
    To restructure loans for countries drowning in debt…
     
    And to mobilize more international and domestic resources, public and private, for vital investments in developing countries.
     
    Next year’s Conference on Financing for Development and the Summit on Social Development are two milestones to carry these efforts forward.
     
    We must also recognize the importance of South-South cooperation.
     
    It doesn’t replace the commitments and obligations of developed countries.
     
    But it is providing a growing contribution to supporting developing countries in overcoming obstacles to reaching the SDGs. 
     
    Second — climate.
     
    Every country has committed to limit temperature rise to 1.5 degrees Celsius.
     
    That requires dramatic action to reduce emissions now — with the G20 in the lead.
     
    COP29 is just weeks away. 
     
    That starts the clock for countries to produce new Nationally Determined Contributions plans with 2035 targets that are aligned with the 1.5 degree goal.
     
    COP29 must deliver an ambitious and credible outcome on the new climate finance goal.
     
    Developed countries must also keep promises to double adaptation finance, and ensure meaningful contributions to the Loss and Damage Fund, which was not the case when it was created.
     
    Third — technology.
     
    Every country must be able to access the benefits of technology.
     
    The Global Digital Compact commits to enhanced global cooperation and capacity-building.
     
    It includes the first truly universal agreement on the international governance of Artificial Intelligence to give every country a seat at the AI table.
     
    It calls for an independent international Scientific Panel on AI and initiating a global dialogue on its governance within the United Nations with the participations of all countries.
     
    And it requests options for innovative financing for AI capacity-building in developing countries.
     
    And fourth — peace.
     
    We must strengthen and update the machinery of peace.
     
    This includes reforms to make the United Nations Security Council reflective of today’s world.
     
    The Pact for the Future includes important steps on disarmament — including the first multilateral agreement on nuclear disarmament in more than a decade — and steps that address the weaponization of outer space and the use of lethal autonomous weapons.
     
    Across the board, we need peace.
     
    We need peace in Gaza with an immediate cease-fire, the immediate and unconditional release of all hostages, the effective delivery of humanitarian aid without obstacles, and we need to make irreversible progress to end the occupation and establish the two state solution, as it was recently reaffirmed once again by a UN General Assembly resolution.
     
    We need peace in Lebanon with an immediate cessation of hostilities, moving to the full implementation of Security Council resolution 1701. 

    We need peace in Ukraine. A just peace in line with the UN Charter, international law and General Assembly resolutions.
     
    We need peace in Sudan, with all parties silencing their guns and committing to a path towards sustainable peace.
     
    Those were the messages I have delivered to the High-Level segment of the General Assembly in September in New York. Unfortunately, they remain valid here and now.
     
    Everywhere, we must uphold the values of the UN Charter, the rule of law, and the principles of sovereignty, territorial integrity and political independence of all States. 
     
    Excellencies, ladies and gentlemen,
     
    The Summit of the Future charted a course to strengthen multilateralism for global development and security.
     
    Now we must turn words into deeds and we believe BRICS can play a very important role in this direction.
     
    Thank you.

    MIL OSI United Nations News

  • MIL-OSI: Invesco Ltd: Form 8.3 – PRS REIT PLC/The; Opening Position Disclosure

    Source: GlobeNewswire (MIL-OSI)

    FORM 8.3

    OPENING POSITION DISCLOSURE BY
    A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE
    Rule 8.3 of the Takeover Code (the “Code”)

    1. KEY INFORMATION  
       
    (a) Full name of discloser: Invesco Ltd.  
    (b) Owner or controller of interests and short positions disclosed, if different from 1(a):
    The naming of nominee or vehicle companies is insufficient. For a trust, the trustee(s), settlor and beneficiaries must be named.
       
    (c) Name of offeror/offeree in relation to whose relevant securities this form relates:
    Use a separate form for each offeror/offeree
    PRS REIT plc, The  
    (d) If an exempt fund manager connected with an offeror/offeree, state this and specify identity of offeror/offeree:    
    (e) Date position held/dealing undertaken:
    For an opening position disclosure, state the latest practicable date prior to the disclosure
    23.10.2024  
    (f) In addition to the company in 1(c) above, is the discloser making disclosures in respect of any other party to the offer?
    If it is a cash offer or possible cash offer, state “N/A”
    N/A  
       
    2. POSITIONS OF THE PERSON MAKING THE DISCLOSURE  
       
    If there are positions or rights to subscribe to disclose in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 2(a) or (b) (as appropriate) for each additional class of relevant security.  
    (a) Interests and short positions in the relevant securities of the offeror or offeree to which the disclosure relates following the dealing (if any)  
       
    Class of relevant security: 1p ordinary GB00BF01NH51  
      Interests Short Positions  
      Number % Number %  
    (1) Relevant securities owned and/or controlled: 71,666,700 13.04      
    (2) Cash-settled derivatives:          
    (3) Stock-settled derivatives (including options) and agreements to purchase/sell:          
      Total 71,666,700 13.04      
       
       
    All interests and all short positions should be disclosed.

    Details of any open stock-settled derivative positions (including traded options), or agreements to purchase or sell relevant securities, should be given on a Supplemental Form 8 (Open Positions).

     
       
       
    (b) Rights to subscribe for new securities (including directors’ and other employee options)  
       
    Class of relevant security in relation to which subscription right exists:    
    Details, including nature of the rights concerned and relevant percentages:    
       
    3. DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE  
       
    Where there have been dealings in more than one class of relevant securities of the offeror or offeree named in 1(c), copy table 3(a), (b), (c) or (d) (as appropriate) for each additional class of relevant security dealt in.

    The currency of all prices and other monetary amounts should be stated.

     
    (a) Purchases and sales  
       
    Class of relevant security Purchase/sale Number of securities Price per unit  
             
             
       
    (b) Cash-settled derivative transactions  
       
    Class of relevant security Product description e.g. CFD Nature of dealing e.g. opening/closing a long/short position, increasing/reducing a long/short position Number of reference securities Price per unit  
               
       
    (c) Stock-settled derivative transactions (including options)
     
    (i) Writing, selling, purchasing or varying
     
    Class of relevant security Product description e.g. call option Writing, purchasing, selling, varying etc. Number of securities to which option relates Exercise price per unit Type e.g. American, European etc. Expiry date Option money paid/ received per unit
                   
       
    (ii) Exercise  
       
    Class of relevant security Product description e.g. call option Exercising/ exercised against Number of securities Exercise price per unit  
               
       
    (d) Other dealings (including subscribing for new securities)  
                 
    Class of relevant security Nature of dealing e.g. subscription, conversion Details Price per unit (if applicable)  
             
       
    4. OTHER INFORMATION  
       
    (a) Indemnity and other dealing arrangements  
       
    Details of any indemnity or option arrangement, or any agreement or understanding, formal or informal, relating to relevant securities which may be an inducement to deal or refrain from dealing entered into by the person making the disclosure and any party to the offer or any person acting in concert with a party to the offer:
    Irrevocable commitments and letters of intent should not be included. If there are no such agreements, arrangements or understandings, state “none”
     
    None  
       
    (b) Agreements, arrangements, or understandings relating to options or derivatives  
       
    Details of any agreement, arrangement or understanding, formal or informal, between the person making the disclosure and any other person relating to:
    (i) the voting rights of any relevant securities under any option; or
    (ii) the voting rights or future acquisition or disposal of any relevant securities to which any derivative is referenced:
    If there are no such agreements, arrangements or understandings, state “none”
     
    None  
       
    (c) Attachments  
       
    Is a Supplemental Form 8 (Open Positions) attached? NO  
       
    Date of disclosure 24.10.2024  
    Contact name Philippa Holmes  
    Telephone number +441491417447  
       

    Public disclosures under Rule 8 of the Code must be made to a Regulatory Information Service.

    The Panel’s Market Surveillance Unit is available for consultation in relation to the Code’s disclosure requirements on +44 (0)20 7638 0129.

    The Code can be viewed on the Panel’s website at www.thetakeoverpanel.org.uk.

    The MIL Network

  • MIL-OSI: AGF Investments Announces October 2024 Cash Distributions for AGF Enhanced U.S. Equity Income Fund, AGF Total Return Bond Fund and AGF Systematic Global Infrastructure ETF

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Oct. 24, 2024 (GLOBE NEWSWIRE) — AGF Investments Inc. (AGF Investments) today announced the October 2024 cash distributions for AGF Enhanced U.S. Equity Income Fund*, AGF Total Return Bond Fund* and AGF Systematic Global Infrastructure ETF, which pay monthly distributions. Unitholders of record on October 31, 2024 will receive cash distributions payable on November 6, 2024.

    Details regarding the final “per unit” distribution amounts are as follows:

    ETF Ticker Exchange Cash Distribution Per Unit ($)
    AGF Enhanced U.S. Equity Income Fund* AENU Cboe Canada Inc. $0.138874
    AGF Total Return Bond Fund* ATRB Cboe Canada Inc. $0.123000
    AGF Systematic Global Infrastructure ETF QIF Cboe Canada Inc. $0.138692

    *AGF Enhanced U.S. Equity Income Fund and AGF Total Return Bond Fund are mutual funds with an ETF series option.

    Further information about the AGF ETFs can be found at AGF.com.

    This information is not intended to provide legal, accounting, tax, investment, financial, or other advice, and should not be relied upon for providing such advice. Commissions, trailing commissions, management fees and expenses all may be associated with investment fund investments. Please read the prospectus before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated.

    About AGF Management Limited

    Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. Our companies deliver excellence in investing in the public and private markets through three business lines: AGF Investments, AGF Capital Partners and AGF Private Wealth.

    AGF brings a disciplined approach, focused on incorporating sound, responsible and sustainable corporate practices. The firm’s collective investment expertise, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisors and their clients to high-net worth and institutional investors including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

    Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With nearly $51 billion in total assets under management and fee-earning assets, AGF serves more than 800,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

    About AGF Investments

    AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). The term AGF Investments may refer to one or more of these subsidiaries or to all of them jointly. This term is used for convenience and does not precisely describe any of the separate companies, each of which manages its own affairs.

    AGF Investments entities only provide investment advisory services or offers investment funds in the jurisdiction where such firm and/or product is registered or authorized to provide such services.

    AGF Investments Inc. is a wholly-owned subsidiary of AGF Management Limited and conducts the management and advisory of mutual funds in Canada.

    Media Contact
    Amanda Marchment
    Director, Corporate Communications
    416-865-4160
    amanda.marchment@agf.com

    The MIL Network

  • MIL-OSI: TeraWulf Inc. Announces Upsize and Pricing of $425 Million Convertible Notes Offering

    Source: GlobeNewswire (MIL-OSI)

    EASTON, Md., Oct. 24, 2024 (GLOBE NEWSWIRE) — TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated, next-generation digital infrastructure powered by predominantly zero-carbon energy, today announced the upsize and pricing of its offering of $425 million aggregate principal amount of 2.75% Convertible Senior Notes due 2030 (the “Convertible Notes”). The Convertible Notes will be sold in a private offering to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).

    Key Elements of the Transaction:

    • $425 million 2.75% Convertible Senior Notes offering (32.50% conversion premium)
    • Capped call transactions entered into in connection with the 2.75% Convertible Senior Notes due 2030 with an initial cap price of $12.80 per share of common stock, which represents a 100% premium to the closing sale price of TeraWulf’s common stock on October 23, 2024
    • Concurrent repurchase of approximately $115 million of common stock

    TeraWulf has granted the initial purchasers of the Convertible Notes a 13-day option to purchase up to an additional $75 million aggregate principal amount of the Convertible Notes. The offering is expected to close on October 25, 2024, subject to satisfaction of customary closing conditions. 

    Use of Proceeds:

    The Company anticipates that the aggregate net proceeds from the offering will be approximately $414.9 million (or approximately $488.1 million if the initial purchasers exercise in full their option to purchase additional notes), after deducting the initial purchasers’ discounts and commissions payable by TeraWulf. The Company intends to use approximately $51 million of the net proceeds from the offering to pay the cost of the capped call transactions (as described below), $115 million to repurchase shares of the Company’s common stock (the “common stock”), and the remainder for general corporate purposes, which may include working capital, strategic acquisitions, expansion of data center infrastructure to support HPC activities and expansion of existing assets.

    Additional Details of the Convertible Notes:

    The Convertible Notes will be senior unsecured obligations of the Company and will accrue interest at a rate of 2.75% per annum, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2025. The Convertible Notes will mature on February 1, 2030, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to November 1, 2029, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the Convertible Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.

    The Convertible Notes will be convertible into cash in respect of the aggregate principal amount of the Convertible Notes to be converted and cash, shares of the common stock or a combination of cash and shares of the common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The conversion rate will initially be 117.9245 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $8.48 per share of the common stock). The initial conversion price of the Convertible Notes represents a premium of approximately 32.50% to the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024. The conversion rate will be subject to adjustment in certain circumstances. In addition, upon conversion in connection with certain corporate events or a notice of redemption, the Company will increase the conversion rate.

    The Company may not redeem the Convertible Notes prior to November 6, 2027. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, on or after November 6, 2027, if the last reported sale price of the common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption to holders at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

    Holders of the Convertible Notes will have the right to require the Company to repurchase all or a portion of their Convertible Notes upon the occurrence of a fundamental change (as defined in the indenture governing the Convertible Notes) at a cash repurchase price of 100% of their principal amount plus any accrued and unpaid interest, if any, to, but excluding the applicable repurchase date. 

    Capped Call Transactions:

    In connection with the pricing of the Convertible Notes, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “option counterparties”). The cap price of the capped call transactions will initially be $12.80 per share of common stock, which represents a premium of 100% over the last reported sale price of the common stock of $6.40 per share on The Nasdaq Capital Market on October 23, 2024 and will be subject to customary anti-dilution adjustments. If the initial purchasers of the Convertible Notes exercise their option to purchase additional Convertible Notes, the Company expects to use a portion of the net proceeds from the sale of the additional Convertible Notes to enter into additional capped call transactions with the option counterparties.

    The capped call transactions are expected generally to reduce potential dilution to the common stock upon conversion of any Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap.

    In connection with establishing their initial hedges of the capped call transactions, the Company expects the option counterparties or their respective affiliates to purchase shares of the common stock and/or enter into various derivative transactions with respect to the common stock concurrently with or shortly after the pricing of the Convertible Notes. This activity could increase (or reduce the size of any decrease in) the market price of the common stock or the Convertible Notes at that time. In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the common stock and/or purchasing or selling shares of the common stock or other securities of the Company in secondary market transactions following the pricing of the Convertible Notes and prior to the maturity of the Convertible Notes (and are likely to do so on each exercise date for the capped call transactions or following any termination of any portion of the capped call transactions in connection with any repurchase, redemption or early conversion of the Convertible Notes). This activity could also cause or avoid an increase or decrease in the market price of the common stock or the Convertible Notes, which could affect holders of the Convertible Notes’ ability to convert the Convertible Notes and, to the extent the activity occurs following conversion of the Convertible Notes or during any observation period related to a conversion of the Convertible Notes, it could affect the amount and value of the consideration that holders of the Convertible Notes will receive upon conversion of such Convertible Notes.

    Share Repurchases:

    The Company entered into transactions to repurchase approximately 17.97 million shares of the common stock for an aggregate purchase price of approximately $115 million from purchasers of the Convertible Notes in privately negotiated transactions effected concurrently with the pricing of the Convertible Notes, and the purchase price per share of the common stock repurchased in such transactions will equal the $6.40 closing price per share of the common stock on The Nasdaq Capital Market on October 23, 2024.

    The Convertible Notes and any shares of common stock issuable upon conversion of the Convertible Notes, if any, have not been registered under the Securities Act, securities laws of any other jurisdiction, and the Convertibles Notes and such shares of common stock may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and any applicable state securities laws. The Convertible Notes will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A under the Securities Act.

    This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the Convertible Notes, nor shall there be any sale of the Convertible Notes or common stock in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About TeraWulf

    TeraWulf develops, owns, and operates environmentally sustainable, next-generation data center infrastructure in the United States, specifically designed for Bitcoin mining and high-performance computing. Led by a team of seasoned energy entrepreneurs, the Company owns and operates the Lake Mariner facility situated on the expansive site of a now retired coal plant in Western New York. Currently, TeraWulf generates revenue primarily through Bitcoin mining, leveraging predominantly zero-carbon energy sources, including nuclear and hydroelectric power. Committed to environmental, social, and governance (ESG) principles that align with its business objectives, TeraWulf aims to deliver industry-leading economics in mining and data center operations at an industrial scale.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts, such as statements concerning the terms of the notes and the capped call transactions, the completion, timing and size of the offering of the notes and the capped call transactions, and the anticipated use of proceeds from the offering (including the proposed share repurchases). All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) conditions in the cryptocurrency mining industry, including fluctuation in the market pricing of bitcoin and other cryptocurrencies, and the economics of cryptocurrency mining, including as to variables or factors affecting the cost, efficiency and profitability of cryptocurrency mining; (2) competition among the various providers of cryptocurrency mining services; (3) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates, including regulation regarding power generation, cryptocurrency usage and/or cryptocurrency mining, and/or regulation regarding safety, health, environmental and other matters, which could require significant expenditures; (4) the ability to implement certain business objectives and to timely and cost-effectively execute integrated projects; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to growth strategies or operations; (6) loss of public confidence in bitcoin or other cryptocurrencies and the potential for cryptocurrency market manipulation; (7) adverse geopolitical or economic conditions, including a high inflationary environment; (8) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (9) the availability, delivery schedule and cost of equipment necessary to maintain and grow the business and operations of TeraWulf, including mining equipment and infrastructure equipment meeting the technical or other specifications required to achieve its growth strategy; (10) employment workforce factors, including the loss of key employees; (11) litigation relating to TeraWulf and/or its business; and (12) other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

    Investors:
    Investors@terawulf.com

    Media:
    media@terawulf.com

    The MIL Network

  • MIL-OSI: Orezone Provides Hard Rock Expansion Update for Its Bomboré Gold Mine

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, Oct. 24, 2024 (GLOBE NEWSWIRE) — Orezone Gold Corporation (TSX: ORE, OTCQX: ORZCF) (“Orezone”) is pleased to provide an update on the hard rock expansion at its Bomboré Gold Mine. The hard rock expansion is forecasted to increase annual gold production to over 170,000 ounces, an approximate 50% increase from current levels, with first gold planned in Q4-2025.

    Site works are well-advanced with the plant-site area cleared and all major earthworks complete. Laydown areas have been prepared and are ready to receive construction equipment, offices, and major plant deliveries. Camp upgrades for construction supervision and teams are also now operational.

    Engineering and Procurement

    Lycopodium Minerals Canada (“Lycopodium”) was awarded the engineering and procurement contract and is ahead of schedule on both activities. Lycopodium was selected due to their successful track record of designing and constructing numerous gold plants in West Africa, including the Company’s Phase I oxide plant that is currently in operation and exceeding nameplate design.

    In terms of procurement, the Company has placed over 50% of all packages including CIL tank platework and 95% of all process equipment. This includes the purchase of a 9MW 26’ diameter SAG mill. The SAG mill is a new, pre-owned mill that was never installed and carries a full warranty by the supplier. Substantial savings in costs and schedule are being realized from the purchase of this manufactured mill. The mill shells, heads and ring gear are now being packaged for shipment later this quarter which is well ahead of schedule.

    Site Construction Activities

    The concrete installation contract was recently awarded with mobilization of the batch plant and equipment scheduled for mid-November, three months ahead of schedule.

    The tank platework supply was awarded in September, and bids for the structural steel and general platework are under evaluation and will be awarded in November.

    The main Structural, Mechanical, and Piping installation contract is expected to be awarded in Q1-2025, which again will be ahead of schedule.

    Mining Fleet and Explosives Magazine

    The first shipment of the hard rock fleet by the mining contractor, which includes new trucks and excavators, has arrived in Burkina Faso and will be transported to site in late October. This early delivery will allow for systematic training of operators well ahead of the start of hard rock mining and will facilitate more cost-effective mining of the lower transition material in the near-term. The remaining hard rock fleet will be delivered to site over the coming six to eight months.

    The explosives magazine is in the final stages of completion. Once in service, the Company will be able to purchase and store bulk explosives for mixing and preparation at site, eliminating the need for the more costly pre-mix batch deliveries. A full-service team from AECI will be on site to mix and supply the downhole explosives for blasting of transition and hard rock material.

    Patrick Downey, President & CEO stated, “I am extremely pleased with the fast progress made to date on the hard rock expansion. The team has focused on critical areas to accelerate site activities and to meet or exceed key milestones. We look forward to sharing regular updates on this important expansion.”

    Figure 1: Hard Rock Plant Area

    About Orezone Gold Corporation

    Orezone Gold Corporation (TSX: ORE OTCQX: ORZCF) is a West African gold producer engaged in mining, developing, and exploring its flagship Bomboré Gold Mine in Burkina Faso. The Bomboré mine achieved commercial production on its oxide operations on December 1, 2022, and is now focused on its staged hard rock expansion that is expected to materially increase annual and life-of-mine gold production from the processing of hard rock mineral reserves. Orezone is led by an experienced team focused on social responsibility and sustainability with a proven track record in project construction and operations, financings, capital markets and M&A.

    The technical report entitled Bomboré Phase II Expansion, Definitive Feasibility Study is available on SEDAR+ and the Company’s website.

    Patrick Downey
    President and Chief Executive Officer

    Vanessa Pickering
    Manager, Investor Relations

    Tel: 1 778 945 8977 / Toll Free: 1 888 673 0663
    info@orezone.com / www.orezone.com

    For further information please contact Orezone at +1 (778) 945 8977 or visit the Company’s website at www.orezone.com.

    The Toronto Stock Exchange neither approves nor disapproves the information contained in this news release.

    QUALIFIED PERSONS

    Dale Tweed, P. Eng., VP Engineering and Rob Henderson, P. Eng. VP Technical Services of Orezone, are Qualified Persons under NI 43-101 and have reviewed and approved the scientific and technical information contained in this news release.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains certain information that may constitute “forward-looking information” within the meaning of applicable Canadian Securities laws and “forward-looking statements” within the meaning of applicable U.S. securities laws (together, “forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “potential”, “possible” and other similar words, or statements that certain events or conditions “may”, “will”, “could”, or “should” occur. Forward-looking statements in this press release include, but are not limited to, statements with respect to the hard rock expansion including the increase in gold production.

    All such forward-looking statements are based on certain assumptions and analyses made by management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management and the qualified persons believe are appropriate in the circumstances.

    All forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements including, but not limited to, delays caused by pandemics, terrorist or other violent attacks (including cyber security attacks), the failure of parties to contracts to honour contractual commitments, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, the possibility of unanticipated costs and expenses, accidents and equipment breakdowns, political risk, unanticipated changes in key management personnel and general economic, market or business conditions, the failure of exploration programs, including drilling programs, to deliver anticipated results and the failure of ongoing and uncertainties relating to the availability and costs of financing needed in the future, and other factors described in the Company’s most recent annual information form and management discussion and analysis filed on SEDAR+. Readers are cautioned not to place undue reliance on forward-looking statements.

    Although the forward-looking statements contained in this press release are based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this press release.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a33214c6-4db5-42c0-8910-83291abd3045

    The MIL Network

  • MIL-OSI: Foodrella Tteokbokki Captivates Global Taste Buds

    Source: GlobeNewswire (MIL-OSI)

    SEOUL, KOREA, Oct. 24, 2024 (GLOBE NEWSWIRE) — Foodrella, a Korean food brand, has launched a product that allows global consumers to create authentic K-food with a simple recipe.

    Once considered a casual snack, tteokbokki has now become deeply embedded in the culinary cultures of the U.S., Europe, and Asia, positioning itself as a pioneer in the globalization of Korean food. Driven by the rising popularity of K-pop and Korean dramas, interest in tteokbokki has surged, especially after K-pop stars were seen enjoying the dish. This has significantly increased demand among international fans eager to experience Korean culture.

    In response to this trend, Foodrella’s tteokbokki mix was created to allow consumers to make the dish effortlessly, using just the mix without needing additional seasoning. Since its debut on Amazon, the product has received widespread acclaim from global consumers, offering them an easy way to enjoy K-food at home.

    Hanmi F3 Co., Ltd., the manufacturer of Foodrella, was founded in 1987. Specializing in the production of sauces, seasonings, food coatings, beverage bases, bakery & dessert mixes, and pickles, the company primarily caters to the restaurant and cafe franchise sectors. Hanmi F3 is dedicated to quality and safety, earning recognition as a leading domestic food manufacturer, with growing attention in international markets.

    Hanmi F3 uses only the finest premium ingredients, ensuring that even with simple processes, its products offer exceptional culinary experiences that add real value to customers’ businesses. The company focuses on providing customized solutions to meet diverse customer needs, while continuously improving products to maintain the highest quality standards.

    A representative from Foodrella stated, “We will continue to focus on developing products tailored to global tastes, aiming to establish tteokbokki not just as a snack, but as a dish enjoyed in everyday life by consumers around the world. We plan to expand the market by diversifying both our recipes and product offerings.” The representative also added, “By adopting localized strategies based on the preferences of consumers in different regions, we aim to introduce new tteokbokki products that can be integrated with a variety of local cuisines.”

    Related Links

    Amazon: https://www.amazon.com/foodrella

    Instagram: https://www.instagram.com/foodrella.official/

    Kakao: https://pf.kakao.com/_thqNC

    Facebook: https://www.facebook.com/foodrella

    Media Contact

    Brand: Foodrella

    Contact: Jason Shin

    Email: ssw@foodrella.com

    Website: https://foodrella.com

    The MIL Network

  • MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Third Quarter Ended September 30, 2024

    Source: GlobeNewswire (MIL-OSI)

    FAIR LAWN, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $6.2 million, or $0.06 per basic and diluted share, for the quarter ended September 30, 2024, as compared to $9.1 million, or $0.09 per basic and diluted share, for the quarter ended September 30, 2023. The income for the quarter ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense.

    For the nine months ended September 30, 2024, the Company reported net income of $9.6 million, or $0.09 per basic and diluted share, as compared to $29.5 million, or $0.29 per basic and diluted share, for the nine months ended September 30, 2023. Earnings for the nine months ended September 30, 2024 reflected lower net interest income, mainly due to an increase in interest expense, and higher provision for credit losses, partially offset by higher non-interest income and lower income tax expense. Non-interest income for the 2023 period included a $10.8 million loss on securities transactions.

    Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “The third quarter earnings have been challenged by continuing pressure on funding costs. Our net interest margin, which has increased 9 basis points since the first quarter of 2024, and our expense management, we believe, will contribute to improved earnings on a go forward basis. The Company’s balance sheet and capital remain strong. We successfully closed the merger and performed the system conversion of Freehold Bank into Columbia Bank in October 2024. This was the final step of our fourth completed merger over the last five years.”

    Results of Operations for the Three Months Ended September 30, 2024 and September 30, 2023

    Net income of $6.2 million was recorded for the quarter ended September 30, 2024, a decrease of $2.9 million, or 32.3%, compared to $9.1 million for the quarter ended September 30, 2023. The decrease in net income was primarily attributable to a $3.2 million decrease in net interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $376,000 increase in non-interest income, and a $1.6 million decrease in income tax expense.

    Net interest income was $45.3 million for the quarter ended September 30, 2024, a decrease of $3.2 million, or 6.7%, from $48.5 million for the quarter ended September 30, 2023. The decrease in net interest income was primarily attributable to a $20.7 million increase in interest expense on deposits and borrowings, partially offset by a $17.5 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $171,000 for the quarter ended September 30, 2024, compared to $83,000 for the quarter ended September 30, 2023.

    The average yield on loans for the quarter ended September 30, 2024 increased 53 basis points to 5.00%, as compared to 4.47% for the quarter ended September 30, 2023, as interest income was influenced by rising interest rates and the average balance of loans. The average yield on securities for the quarter ended September 30, 2024 increased 53 basis points to 2.90%, as compared to 2.37% for the quarter ended September 30, 2023, as new securities purchased during the 2024 period were at higher rates. The average yield on other interest-earning assets for the quarter ended September 30, 2024 increased 81 basis points to 6.72%, as compared to 5.91% for the quarter ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

    Total interest expense was $70.6 million for the quarter ended September 30, 2024, an increase of $20.7 million, or 41.6%, from $49.9 million for the quarter ended September 30, 2023. The increase in interest expense was primarily attributable to a 90 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 17 basis point increase in the average cost of borrowings, coupled with an increase in the average balance of borrowings. Interest expense on deposits increased $16.3 million, or 45.3%, and interest expense on borrowings increased $4.5 million, or 31.9%.

    The Company’s net interest margin for the quarter ended September 30, 2024 decreased 22 basis points to 1.84%, when compared to 2.06% for the quarter ended September 30, 2023. The weighted average yield on interest-earning assets increased 53 basis points to 4.70% for the quarter ended September 30, 2024, as compared to 4.17% for the quarter ended September 30, 2023. The average cost of interest-bearing liabilities increased 82 basis points to 3.52% for the quarter ended September 30, 2024, as compared to 2.70% for the quarter ended September 30, 2023. The increase in yields for the quarter ended September 30, 2024 was due to the impact of market interest rate increases in 2023. The net interest margin decreased for the quarter ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets. The Company’s net interest margin for the quarter ended September 30, 2024 when compared to the quarter ended March 31, 2024 increased 9 basis points from 1.75% to 1.84%.

    The provision for credit losses for the quarter ended September 30, 2024 was $4.1 million, an increase of $1.7 million, from $2.4 million for the quarter ended September 30, 2023. The increase in provision for credit losses during the quarter was primarily attributable to net charge-offs totaling $2.7 million and an increase in the loan performance qualitative factors.

    Non-interest income was $9.0 million for the quarter ended September 30, 2024, an increase of $376,000, from $8.6 million for the quarter ended September 30, 2023. The increase was primarily attributable to an increase of $347,000 in demand deposit account fees, mainly related to commercial account treasury services.

    Non-interest expense was $42.8 million for the quarter ended September 30, 2024, a decrease of $76,000, from $42.9 million for the quarter ended September 30, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.0 million, partially offset by an increase in data processing fees of $666,000, and federal deposit insurance premiums of $317,000. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024. Data processing and software expenses increased due to costs related to cybersecurity and technology enhancements, and federal deposit insurance premiums increased due to the 2024 quarter including an increase in a one-time special assessment charge.

    Income tax expense was $1.1 million for the quarter ended September 30, 2024, a decrease of $1.6 million, as compared to income tax expense of $2.7 million for the quarter ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 15.5% and 22.9% for the quarters ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 quarter was primarily impacted by permanent income tax differences.

    Results of Operations for the Nine Months Ended September 30, 2024 and September 30, 2023

    Net income of $9.6 million was recorded for the nine months ended September 30, 2024, a decrease of $19.9 million, or 67.6%, compared to $29.5 million for the nine months ended September 30, 2023. The decrease in net income was primarily attributable to a $29.0 million decrease in net interest income and a $7.9 million increase in provision for credit losses, partially offset by a $9.5 million increase in non-interest income and a $7.8 million decrease in income tax expense.

    Net interest income was $131.6 million for the nine months ended September 30, 2024, a decrease of $29.0 million, or 18.1%, from $160.5 million for the nine months ended September 30, 2023. The decrease in net interest income was primarily attributable to a $79.4 million increase in interest expense on deposits and borrowings, partially offset by a $50.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases that occurred throughout 2023, and adjustable rate securities and loans tied to various indexes that repriced higher in the 2024 period. The 50 basis point decrease in market rates in September 2024 did not significantly impact the 2024 period results. The increase in interest expense on deposits was driven by the 2023 rate increases and an increase in the average balance of interest-bearing deposits, coupled with the continued intense competition for deposits in the market and the repricing of existing deposits into higher cost products. The increase in interest expense on borrowings was also impacted by an increase in the average balance of borrowings and the increase in interest rates for new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $875,000 for the nine months ended September 30, 2024, compared to $339,000 for the nine months ended September 30, 2023.

    The average yield on loans for the nine months ended September 30, 2024 increased 55 basis points to 4.91%, as compared to 4.36% for the nine months ended September 30, 2023, as interest income was influenced by higher interest rates and loan growth. The average yield on securities for the nine months ended September 30, 2024 increased 40 basis points to 2.82%, as compared to 2.42% for the nine months ended September 30, 2023, as a number of adjustable rate securities tied to various indexes repriced higher during the nine months, and new securities purchased during the 2024 period were at higher yields. The average yield on other interest-earning assets for the nine months ended September 30, 2024 increased 90 basis points to 6.35%, as compared to 5.45% for the nine months ended September 30, 2023, due to the rise in average balances and interest rates paid on cash balances and an increase in the dividend rate paid on Federal Home Loan Bank stock.

    Total interest expense was $206.2 million for the nine months ended September 30, 2024, an increase of $79.4 million, 62.5%, from $126.9 million for the nine months ended September 30, 2023. The increase in interest expense was primarily attributable to a 134 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, along with a 25 basis point increase in the average cost of borrowings, and an increase in the average balance of borrowings. Interest expense on deposits increased $68.7 million, or 84.1%, and interest expense on borrowings increased $10.6 million, or 23.6%.

    The Company’s net interest margin for the nine months ended September 30, 2024 decreased 47 basis points to 1.80%, when compared to 2.27% for the nine months ended September 30, 2023. The weighted average yield on interest-earning assets increased 55 basis points to 4.61% for the nine months ended September 30, 2024, as compared to 4.06% for the nine months ended September 30, 2023. The average cost of interest-bearing liabilities increased 118 basis points to 3.47% for the nine months ended September 30, 2024, as compared to 2.29% for the nine months ended September 30, 2023. The increase in yields for the nine months ended September 30, 2024 was due to the impact of market interest rate increases between periods. The net interest margin decreased for the nine months ended September 30, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

    The provision for credit losses for the nine months ended September 30, 2024 was $11.6 million, an increase of $7.9 million, from $3.6 million for the nine months ended September 30, 2023. The increase in provision for credit losses was primarily attributable to net charge-offs totaling $8.2 million and an increase in the loan performance qualitative factors.

    Non-interest income was $25.6 million for the nine months ended September 30, 2024, an increase of $9.5 million, from $16.1 million for the nine months ended September 30, 2023. The increase was primarily attributable to a decrease in the loss on securities transactions of $9.6 million.

    Non-interest expense was $134.7 million for the nine months ended September 30, 2024, an increase of $321,000, from $134.4 million for the nine months ended September 30, 2023. The increase was primarily attributable to an increase in federal deposit insurance premiums of $2.1 million, due to the 2024 period including an increase in a one-time special assessment charge. In addition, there was an increase in professional fees of $4.9 million, an increase in data processing and software expenses of $1.1 million, an increase in merger-related expense of $457,000, and an increase in other non-interest expense of $1.2 million, partially offset by a decrease in compensation and employee benefits expense of $9.5 million. Professional fees included an increase in legal, regulatory and compliance-related costs while data processing and software expenses increased due to costs related to cybersecurity and technology enhancements. The decrease in compensation and employee benefits expense was the result of workforce reduction and lower incentive compensation related to employee cost cutting strategies implemented during 2023 and 2024.

    Income tax expense was $1.3 million for the nine months ended September 30, 2024, a decrease of $7.8 million, as compared to income tax expense of $9.1 million for the nine months ended September 30, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 11.8% and 23.6% for the nine months ended September 30, 2024 and 2023, respectively. The effective tax rate for the 2024 period was also impacted by permanent income tax differences.

    Balance Sheet Summary

    Total assets increased $40.9 million, or 0.4%, to $10.7 billion at September 30, 2024 as compared to $10.6 billion at December 31, 2023. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $178.9 million, and an increase in other assets of $21.3 million, partially offset by a decrease in cash and cash equivalents of $139.7 million, and a decrease in loans receivable, net, of $20.7 million.

    Cash and cash equivalents decreased $139.7 million, or 33.0%, to $283.5 million at September 30, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $283.5 million and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from principal repayments on securities of $119.3 million, and repayments on loans receivable.

    Debt securities available for sale increased $178.9 million, or 16.4%, to $1.3 billion at September 30, 2024 from $1.1 billion at December 31, 2023. The increase was attributable to the purchases of debt securities available for sale of $266.9 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in gross unrealized losses on securities of $34.3 million, partially offset by repayments on securities of $107.8 million, maturities of securities of $10.0 million, and the sale of one corporate debt security with a carrying value of $4.8 million, resulting in a loss of $1.3 million.

    Loans receivable, net, decreased $20.7 million, or 0.3%, with a balance of $7.8 billion at both September 30, 2024 and December 31, 2023. One-to-four family real estate loans, multifamily loans, commercial real estate loans, and home equity loans and advances decreased $55.6 million, $10.2 million, $64.3 million, and $5.6 million, respectively, partially offset by increases in construction loans of $67.3 million and commercial business loans of $53.4 million. The allowance for credit losses for loans increased $3.4 million to $58.5 million at September 30, 2024 from $55.1 million at December 31, 2023.

    Other assets increased $21.3 million or 6.9%, to $329.7 million at September 30, 2024 compared to $308.4 million at December 31, 2023, primarily due to a $10.4 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations and a $12.6 million increase in the Company’s collateral posting with certain of its derivative counterparties.

    Total liabilities increased $2.1 million, or 0.02%, totaling $9.6 billion at both September 30, 2024 and December 31, 2023. The increase was primarily attributable to an increase in total deposits of $111.5 million, or 1.4%, partially offset by a decrease in borrowings of $108.1 million, or 7.1%. The increase in total deposits primarily consisted of an increase in certificates of deposit and interest-bearing demand deposits of $195.7 million, and $13.8 million, respectively, partially offset by decreases in non-interest-bearing demand deposits, money market accounts, and savings and club accounts of $31.2 million, $16.3 million, and $50.5 million, respectively. The Bank has priced select certificates of deposit accounts very competitively to the market to attract new customers. The $108.1 million decrease in borrowings was primarily driven by a net decrease in short-term borrowings of $167.8 million and repayments of $175.5 million in maturing long-term borrowings, partially offset by an increase in long-term borrowings of $235.2 million.

    Total stockholders’ equity increased $38.8 million, or 3.7%, to $1.1 billion at September 30, 2024 as compared to $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to net income of $9.6 million, a $5.5 million increase in stock based compensation and an increase of $27.7 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income. These increases were partially offset by the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

    Asset Quality

    The Company’s non-performing loans at September 30, 2024 totaled $28.0 million, or 0.36% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $15.4 million increase in non-performing loans was primarily attributable to an increase in non-performing one-to-four family real estate loans of $4.2 million, an increase in non-performing commercial real estate loans of $6.7 million, and an increase in non-performing commercial business loans of $4.5 million. One borrower with an outstanding $5.7 million commercial real estate loan and a related $3.5 million commercial business loan was placed on non-accrual status, representing approximately 60% of the increase in non-performing loans during the 2024 period. This borrower is a healthcare facility that was acquired by another healthcare provider in 2024. The acquiring entity has strong cash flow, has guaranteed the commercial business loan and has provided cash collateral. The Company has the first lien on the healthcare facility which has a 2024 appraised value of approximately $18.5 million along with additional collateral. One commercial real estate loan for $2.0 million secured by a medical condominium was transferred to other real estate owned in May 2024, and a related commercial business loan to the same borrower for $54,000 was charged-off during the nine months ended September 30, 2024.

    The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 27 loans at September 30, 2024. Non-performing assets as a percentage of total assets totaled 0.28% and 0.12% at September 30, 2024 and December 31, 2023, respectively.

    For the quarter ended September 30, 2024, net charge-offs totaled $2.7 million, as compared to $1.7 million in net charge-offs recorded for the quarter ended September 30, 2023. For the nine months ended September 30, 2024, net charge-offs totaled $8.2 million, as compared to $2.3 million in net charge-offs recorded for the nine months ended September 30, 2023. Net charge-offs recorded for the nine months ended September 30, 2024 included charge-offs related to 15 commercial business loans totaling $7.7 million. The majority of these loans have continued making monthly payments, and management expects additional recoveries from these borrowers on a go forward basis.

    The Company’s allowance for credit losses on loans was $58.5 million, or 0.75% of total gross loans, at September 30, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023.

    Additional Liquidity, Loan, and Deposit Information

    The Company services a diverse retail and commercial deposit base through its 68 branches. With approximately 215,000 accounts, the average deposit account balance was approximately $37,000 at September 30, 2024.

    Deposit balances are summarized as follows:

      At September 30, 2024   At June 30, 2024
      Balance   Weighted
    Average
    Rate
      Balance   Weighted
    Average
    Rate
      (Dollars in thousands)
                   
    Non-interest-bearing demand $ 1,406,152       %   $ 1,405,441       %
    Interest-bearing demand   1,980,298       2.41       1,904,483       2.37  
    Money market accounts   1,239,204       2.92       1,246,663       3.17  
    Savings and club deposits   649,858       0.79       673,031       0.83  
    Certificates of deposit   2,682,547       4.45       2,551,929       4.34  
    Total deposits $ 7,958,059       2.62 %   $ 7,781,547       2.56 %
                                   

    The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at September 30, 2024. As of September 30, 2024, the Company had immediate access to approximately $2.6 billion of funding, with additional unpledged loan collateral in excess of $1.8 billion.

    At September 30, 2024, the Company’s non-performing commercial real estate loans totaled $9.4 million, or 0.12%, of the total loans receivable loan portfolio balance.

    The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

      At September 30, 2024
      (Dollars in thousands)
      Balance   % of Gross Loans   Weighted Average
    Loan to Value Ratio
      Weighted
    Average
    Debt Service
    Coverage

    Multifamily Real Estate $ 1,399,000       17.8 %     61.0 %     1.62 x
                       
    Owner Occupied Commercial Real Estate $ 683,523       8.7 %     53.6 %     2.10 x
                       
    Investor Owned Commercial Real Estate:                  
    Retail / Shopping centers $ 484,121       6.2 %     51.7 %     1.59 x
    Mixed Use   211,853       2.7       58.1       1.61  
    Industrial / Warehouse   389,470       5.0       54.9       1.70  
    Non-Medical Office   197,768       2.5       54.2       1.64  
    Medical Office   126,947       1.6       57.9       1.50  
    Single Purpose   94,497       1.2       54.5       3.23  
    Other   124,580       1.6       52.0       1.67  
    Total $ 1,629,236       20.7 %     54.3 %     1.72 x
                       
    Total Multifamily and Commercial Real Estate Loans $ 3,711,759       47.2 %     56.7 %     1.75 x
                                   

    As of September 30, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

    About Columbia Financial, Inc.

    The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 68 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

    Forward Looking Statements

    Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which 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 and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

    Non-GAAP Financial Measures

    Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. 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.

    The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

    A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.

           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
    (In thousands)
           
      September 30,   December 31,
      2024
      2023
    Assets (Unaudited)    
    Cash and due from banks $ 283,391     $ 423,140  
    Short-term investments   110       109  
    Total cash and cash equivalents   283,501       423,249  
           
    Debt securities available for sale, at fair value   1,272,464       1,093,557  
    Debt securities held to maturity, at amortized cost (fair value of $367,559, and $357,177 at September 30, 2024 and December 31, 2023, respectively)   401,331       401,154  
    Equity securities, at fair value   4,504       4,079  
    Federal Home Loan Bank stock   75,847       81,022  
           
    Loans receivable   7,857,190       7,874,537  
    Less: allowance for credit losses   58,495       55,096  
    Loans receivable, net   7,798,695       7,819,441  
           
    Accrued interest receivable   41,659       39,345  
    Office properties and equipment, net   82,248       83,577  
    Bank-owned life insurance   272,970       268,362  
    Goodwill and intangible assets   121,569       123,350  
    Other real estate owned   1,974        
    Other assets   329,741       308,432  
    Total assets $ 10,686,503     $ 10,645,568  
           
    Liabilities and Stockholders’ Equity      
    Liabilities:      
    Deposits $ 7,958,059     $ 7,846,556  
    Borrowings   1,420,640       1,528,695  
    Advance payments by borrowers for taxes and insurance   42,793       43,509  
    Accrued expenses and other liabilities   185,861       186,473  
    Total liabilities   9,607,353       9,605,233  
           
    Stockholders’ equity:      
    Total stockholders’ equity   1,079,150       1,040,335  
    Total liabilities and stockholders’ equity $ 10,686,503     $ 10,645,568  
                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Income
    (In thousands, except per share data)
           
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
    Interest income: (Unaudited)   (Unaudited)
    Loans receivable $ 97,863     $ 87,548     $ 286,064     $ 252,026  
    Debt securities available for sale and equity securities   9,592       6,147       26,618       21,043  
    Debt securities held to maturity   2,616       2,434       7,487       7,338  
    Federal funds and interest-earning deposits   3,850       747       11,872       3,360  
    Federal Home Loan Bank stock dividends   1,966       1,529       5,759       3,661  
    Total interest income   115,887       98,405       337,800       287,428  
    Interest expense:              
    Deposits   52,196       35,918       150,440       81,733  
    Borrowings   18,416       13,965       55,805       45,158  
    Total interest expense   70,612       49,883       206,245       126,891  
                   
    Net interest income   45,275       48,522       131,555       160,537  
                   
    Provision for credit losses   4,103       2,379       11,575       3,632  
                   
    Net interest income after provision for credit losses   41,172       46,143       119,980       156,905  
                   
    Non-interest income:              
    Demand deposit account fees   1,695       1,348       4,698       3,815  
    Bank-owned life insurance   1,669       2,014       5,253       5,670  
    Title insurance fees   688       629       1,935       1,840  
    Loan fees and service charges   951       969       3,290       3,366  
    Loss on securities transactions               (1,256 )     (10,847 )
    Change in fair value of equity securities   (27 )     (81 )     425       249  
    Gain on sale of loans   459       397       825       1,060  
    Other non-interest income   3,543       3,326       10,440       10,977  
    Total non-interest income   8,978       8,602       25,610       16,130  
                   
    Non-interest expense:              
    Compensation and employee benefits   27,738       28,765       82,910       92,383  
    Occupancy   5,594       5,845       17,621       17,337  
    Federal deposit insurance premiums   1,518       1,201       5,752       3,624  
    Advertising   766       834       2,053       2,307  
    Professional fees   2,454       2,490       11,597       6,741  
    Data processing and software expenses   4,125       3,459       12,006       10,885  
    Merger-related expenses   23       14       737       280  
    Other non-interest expense, net   616       302       2,063       861  
    Total non-interest expense   42,834       42,910       134,739       134,418  
                   
    Income before income tax expense   7,316       11,835       10,851       38,617  
                   
    Income tax expense   1,131       2,705       1,281       9,100  
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
                   
    Earnings per share-basic $ 0.06     $ 0.09     $ 0.09     $ 0.29  
    Earnings per share-diluted $ 0.06     $ 0.09     $ 0.09     $ 0.29  
    Weighted average shares outstanding-basic   101,623,160       101,968,294       101,673,619       102,993,215  
    Weighted average shares outstanding-diluted   101,832,048       102,097,491       101,813,253       103,257,616  
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Three Months Ended September 30,
      2024   2023
      Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost   Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,791,131     $ 97,863       5.00 %   $ 7,763,368     $ 87,548       4.47 %
    Securities   1,676,781       12,208       2.90 %     1,437,944       8,581       2.37 %
    Other interest-earning assets   344,560       5,816       6.72 %     152,900       2,276       5.91 %
    Total interest-earning assets   9,812,472       115,887       4.70 %     9,354,212       98,405       4.17 %
    Non-interest-earning assets   870,155               844,884          
    Total assets $ 10,682,627             $ 10,199,096          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,970,444     $ 14,581       2.94 %   $ 2,054,464     $ 10,274       1.98 %
    Money market accounts   1,250,676       8,256       2.63 %     1,049,277       7,763       2.94 %
    Savings and club deposits   658,628       1,313       0.79 %     758,999       691       0.36 %
    Certificates of deposit   2,589,190       28,046       4.31 %     2,296,573       17,190       2.97 %
    Total interest-bearing deposits   6,468,938       52,196       3.21 %     6,159,313       35,918       2.31 %
    FHLB advances   1,497,580       18,249       4.85 %     1,142,484       13,508       4.69 %
    Notes payable               %     29,925       297       3.94 %
    Junior subordinated debentures   7,028       164       9.28 %     7,315       160       8.68 %
    Other borrowings   217       3       5.50 %                 %
    Total borrowings   1,504,825       18,416       4.87 %     1,179,724       13,965       4.70 %
    Total interest-bearing liabilities   7,973,763     $ 70,612       3.52 %     7,339,037     $ 49,883       2.70 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,411,622               1,498,726          
    Other non-interest-bearing liabilities   235,990               241,463          
    Total liabilities   9,621,375               9,079,226          
    Total stockholders’ equity   1,061,252               1,119,870          
    Total liabilities and stockholders’ equity $ 10,682,627             $ 10,199,096          
                           
    Net interest income     $ 45,275             $ 48,522      
    Interest rate spread           1.18 %             1.47 %
    Net interest-earning assets $ 1,838,709             $ 2,015,175          
    Net interest margin           1.84 %             2.06 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.06 %             127.46 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Nine Months Ended September 30,
      2024   2023
      Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost   Average
    Balance
      Interest
    and
    Dividends
      Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,789,356     $ 286,064       4.91 %   $ 7,725,121     $ 252,026       4.36 %
    Securities   1,618,319       34,105       2.82 %     1,569,999       28,381       2.42 %
    Other interest-earning assets   370,749       17,631       6.35 %     172,151       7,021       5.45 %
    Total interest-earning assets   9,778,424       337,800       4.61 %     9,467,271       287,428       4.06 %
    Non-interest-earning assets   864,036               835,459          
    Total assets $ 10,642,460             $ 10,302,730          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,972,520     $ 41,673       2.82 %   $ 2,244,978     $ 25,465       1.52 %
    Money market accounts   1,235,520       25,349       2.74 %     894,520       15,334       2.29 %
    Savings and club deposits   673,930       3,920       0.78 %     819,804       1,384       0.23 %
    Certificates of deposit   2,550,634       79,498       4.16 %     2,165,778       39,550       2.44 %
    Total interest-bearing deposits   6,432,604       150,440       3.12 %     6,125,080       81,733       1.78 %
    FHLB advances   1,507,045       55,316       4.90 %     1,254,637       43,806       4.67 %
    Notes payable               %     30,148       895       3.97 %
    Junior subordinated debentures   7,023       486       9.24 %     7,377       457       8.28 %
    Other borrowings   73       3       5.49 %                 %
    Total borrowings   1,514,141       55,805       4.92 %     1,292,162       45,158       4.67 %
    Total interest-bearing liabilities   7,946,745     $ 206,245       3.47 %     7,417,242     $ 126,891       2.29 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,406,666               1,572,497          
    Other non-interest-bearing liabilities   243,848               225,629          
    Total liabilities   9,597,259               9,215,368          
    Total stockholders’ equity   1,045,201               1,087,362          
    Total liabilities and stockholders’ equity $ 10,642,460             $ 10,302,730          
                           
    Net interest income     $ 131,555             $ 160,537      
    Interest rate spread           1.15 %             1.77 %
    Net interest-earning assets $ 1,831,679             $ 2,050,029          
    Net interest margin           1.80 %             2.27 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.05 %             127.64 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Components of Net Interest Rate Spread and Margin
       
      Average Yields/Costs by Quarter
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    Yield on interest-earning assets:                  
    Loans   5.00 %     4.93 %     4.79 %     4.66 %     4.47 %
    Securities   2.90       2.89       2.65       2.58       2.37  
    Other interest-earning assets   6.72       6.30       6.06       5.64       5.91  
    Total interest-earning assets   4.70 %     4.64 %     4.50 %     4.39 %     4.17 %
                       
    Cost of interest-bearing liabilities:                  
    Total interest-bearing deposits   3.21 %     3.14 %     3.02 %     2.76 %     2.31 %
    Total borrowings   4.87       4.92       4.98       4.96       4.70  
    Total interest-bearing liabilities   3.52 %     3.49 %     3.38 %     3.18 %     2.70 %
                       
    Interest rate spread   1.18 %     1.15 %     1.12 %     1.21 %     1.47 %
    Net interest margin   1.84 %     1.81 %     1.75 %     1.85 %     2.06 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities   123.06 %     123.03 %     123.06 %     125.32 %     127.46 %
                                           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Selected Financial Highlights
       
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
    SELECTED FINANCIAL RATIOS (1):                  
    Return on average assets   0.23 %     0.17 %     (0.04 )%     0.25 %     0.36 %
    Core return on average assets   0.23 %     0.20 %     0.02 %     0.38 %     0.36 %
    Return on average equity   2.32 %     1.77 %     (0.45 )%     2.31 %     3.23 %
    Core return on average equity   2.29 %     2.06 %     0.18 %     3.55 %     3.24 %
    Core return on average tangible equity   2.58 %     2.34 %     0.20 %     3.99 %     3.64 %
    Interest rate spread   1.18 %     1.15 %     1.12 %     1.21 %     1.47 %
    Net interest margin   1.84 %     1.81 %     1.75 %     1.85 %     2.06 %
    Non-interest income to average assets   0.33 %     0.35 %     0.28 %     0.42 %     0.33 %
    Non-interest expense to average assets   1.60 %     1.74 %     1.74 %     1.80 %     1.67 %
    Efficiency ratio   78.95 %     86.83 %     91.96 %     84.82 %     75.12 %
    Core efficiency ratio   79.14 %     85.34 %     88.39 %     76.93 %     75.09 %
    Average interest-earning assets to average interest-bearing liabilities   123.06 %     123.03 %     123.06 %     125.32 %     127.46 %
    Net charge-offs to average outstanding loans   0.14 %     0.03 %     0.26 %     0.01 %     0.09 %
                       
    (1) Ratios are annualized when appropriate.
     
    ASSET QUALITY DATA:  
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (Dollars in thousands)
                       
    Non-accrual loans $ 28,014     $ 25,281     $ 22,935     $ 12,618     $ 15,150  
    90+ and still accruing                            
    Non-performing loans   28,014       25,281       22,935       12,618       15,150  
    Real estate owned   1,974       1,974                    
    Total non-performing assets $ 29,988     $ 27,255     $ 22,935     $ 12,618     $ 15,150  
                       
    Non-performing loans to total gross loans   0.36 %     0.33 %     0.30 %     0.16 %     0.19 %
    Non-performing assets to total assets   0.28 %     0.25 %     0.22 %     0.12 %     0.15 %
    Allowance for credit losses on loans (“ACL”) $ 58,495     $ 57,062     $ 55,401     $ 55,096     $ 54,113  
    ACL to total non-performing loans   208.81 %     225.71 %     241.56 %     436.65 %     357.18 %
    ACL to gross loans   0.75 %     0.73 %     0.71 %     0.70 %     0.69 %
                                           
    LOAN DATA:  
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (In thousands)
    Real estate loans:          
    One-to-four family $ 2,737,190     $ 2,764,177     $ 2,778,932     $ 2,792,833     $ 2,791,939  
    Multifamily   1,399,000       1,409,316       1,429,369       1,409,187       1,417,233  
    Commercial real estate   2,312,759       2,316,252       2,318,178       2,377,077       2,374,488  
    Construction   510,439       462,880       437,566       443,094       390,940  
    Commercial business loans   586,447       554,768       538,260       533,041       546,750  
    Consumer loans:                  
    Home equity loans and advances   261,041       260,427       260,786       266,632       267,016  
    Other consumer loans   2,877       2,689       2,601       2,801       2,586  
    Total gross loans   7,809,753       7,770,509       7,765,692       7,824,665       7,790,952  
    Purchased credit deteriorated loans   11,795       12,150       14,945       15,089       15,228  
    Net deferred loan costs, fees and purchased premiums and discounts   35,642       36,352       34,992       34,783       34,360  
    Allowance for credit losses   (58,495 )     (57,062 )     (55,401 )     (55,096 )     (54,113 )
    Loans receivable, net $ 7,798,695     $ 7,761,949     $ 7,760,228     $ 7,819,441     $ 7,786,427  
                                           
    CAPITAL RATIOS:      
      September 30,   December 31,
      2024 (1)   2023
    Company:      
    Total capital (to risk-weighted assets)   14.37 %     14.08 %
    Tier 1 capital (to risk-weighted assets)   13.59 %     13.32 %
    Common equity tier 1 capital (to risk-weighted assets)   13.50 %     13.23 %
    Tier 1 capital (to adjusted total assets)   10.16 %     10.04 %
           
    Columbia Bank:      
    Total capital (to risk-weighted assets)   14.44 %     14.02 %
    Tier 1 capital (to risk-weighted assets)   13.61 %     13.22 %
    Common equity tier 1 capital (to risk-weighted assets)   13.61 %     13.22 %
    Tier 1 capital (to adjusted total assets)   9.62 %     9.48 %
           
    Freehold Bank:      
    Total capital (to risk-weighted assets)   25.98 %     22.49 %
    Tier 1 capital (to risk-weighted assets)   25.41 %     21.81 %
    Common equity tier 1 capital (to risk-weighted assets)   25.41 %     21.81 %
    Tier 1 capital (to adjusted total assets)   16.63 %     15.27 %
           
    (1) Estimated ratios at September 30, 2024
           
    Reconciliation of GAAP to Non-GAAP Financial Measures
           
    Book and Tangible Book Value per Share
      September 30,   December 31,
      2024   2023
      (Dollars in thousands)
       
    Total stockholders’ equity $ 1,079,150     $ 1,040,335  
    Less: goodwill   (110,715 )     (110,715 )
    Less: core deposit intangible   (9,496 )     (11,155 )
    Total tangible stockholders’ equity $ 958,939     $ 918,465  
           
    Shares outstanding   104,725,436       104,918,905  
           
    Book value per share $ 10.30     $ 9.92  
    Tangible book value per share $ 9.16     $ 8.75  
                   
    Reconciliation of Core Net Income              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023
      2024
      2023
      (In thousands)
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
    Add: loss on securities transactions, net of tax               1,130       9,249  
    Less/add: FDIC special assessment, net of tax   (107 )           385        
    Add: severance expense from reduction in workforce, net of tax               67       1,390  
    Add: merger-related expenses, net of tax   19       11       691       241  
    Add: litigation expenses, net of tax                     262  
    Core net income $ 6,097     $ 9,141     $ 11,843     $ 40,659  
                                   
    Return on Average Assets              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Net income $ 6,185     $ 9,130     $ 9,570     $ 29,517  
                   
    Average assets $ 10,682,627     $ 10,199,096     $ 10,642,460     $ 10,302,730  
                   
    Return on average assets   0.23 %     0.36 %     0.12 %     0.38 %
                   
    Core net income $ 6,097     $ 9,141     $ 11,843     $ 40,659  
                   
    Core return on average assets   0.23 %     0.36 %     0.15 %     0.53 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Return on Average Equity              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,061,252     $ 1,119,870     $ 1,045,201     $ 1,087,362  
    Add: loss on securities transactions, net of tax               1,130       9,249  
    Less/add: FDIC special assessment, net of tax   (107 )           385        
    Add: severance expense from reduction in workforce, net of tax               67       1,390  
    Add: merger-related expenses, net of tax   19       11       691       241  
    Add: litigation expenses, net of tax                     262  
    Core average stockholders’ equity $ 1,061,164     $ 1,119,881     $ 1,047,474     $ 1,098,504  
                   
    Return on average equity   2.32 %     3.23 %     1.22 %     3.63 %
                   
    Core return on core average equity   2.29 %     3.24 %     1.51 %     4.95 %
                                   
    Return on Average Tangible Equity        
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,061,252     $ 1,119,870     $ 1,045,201     $ 1,087,362  
    Less: average goodwill   (110,715 )     (110,715 )     (110,715 )     (110,715 )
    Less: average core deposit intangible   (9,842 )     (12,109 )     (10,391 )     (12,989 )
    Total average tangible stockholders’ equity $ 940,695     $ 997,046     $ 924,095     $ 963,658  
                   
    Core return on average tangible equity   2.58 %     3.64 %     1.71 %     5.64 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Efficiency Ratios              
      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
      2024   2023   2024   2023
      (Dollars in thousands)
                   
    Net interest income $ 45,275     $ 48,522     $ 131,555     $ 160,537  
    Non-interest income   8,978       8,602       25,610       16,130  
    Total income $ 54,253     $ 57,124     $ 157,165     $ 176,667  
                   
    Non-interest expense $ 42,834     $ 42,910     $ 134,739     $ 134,418  
                   
    Efficiency ratio   78.95 %     75.12 %     85.73 %     76.09 %
                   
    Non-interest income $ 8,978     $ 8,602     $ 25,610     $ 16,130  
    Add: loss on securities transactions               1,256       10,847  
    Core non-interest income $ 8,978     $ 8,602     $ 26,866     $ 26,977  
                   
    Non-interest expense $ 42,834     $ 42,910     $ 134,739     $ 134,418  
    Add/less: FDIC special assessment, net   126             (439 )      
    Less: severance expense from reduction in workforce               (74 )     (1,605 )
    Less: merger-related expenses   (23 )     (14 )     (737 )     (280 )
    Less: litigation expenses                     (317 )
    Core non-interest expense $ 42,937     $ 42,896     $ 133,489     $ 132,216  
                   
    Core efficiency ratio   79.14 %     75.09 %     84.26 %     70.51 %
                                   

    Columbia Financial, Inc.
    Investor Relations Department
    (833) 550-0717

    The MIL Network

  • MIL-OSI: Independent Bank Corporation Reports 2024 Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter Highlights

    Highlights for the third quarter of 2024 include:

    • Increases in net interest income of $0.5 million (or 4.9% annualized) from June 30, 2024;
    • An increase in tangible book value per share of $3.69 (22.3%) over the third quarter of 2023;
    • Net growth in core deposits of $100.1 million (or 8.9% annualized) from June 30, 2024;
    • Net growth in loans of $90.4 million (or 9.3% annualized) from June 30, 2024; and
    • The payment of a 24 cent per share dividend on common stock on August 15, 2024.

    GRAND RAPIDS, Mich., Oct. 24, 2024 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported third quarter 2024 net income of $13.8 million, or $0.65 per diluted share, versus net income of $17.5 million, or $0.83 per diluted share, in the prior-year period.

    William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased with our third quarter 2024 results, driving organic growth on both sides of the balance sheet. Overall loans increased 9.3% (annualized), while core deposits are up 8.9% (annualized). We were able to generate net interest income growth on both a linked quarter basis and on a year over year quarterly basis. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. Our credit metrics continue to be excellent, with watch credits and non-performing assets near historic lows. These fundamentals continue to drive good growth in tangible book value per share (22%) compared to the prior year quarter. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the on-going strategic initiative to add talented bankers to our team, we are optimistic about continuing these growth trends for the remainder of the year and into 2025.”

    Significant items impacting comparable third quarter 2024 and 2023 results include the following:

    • Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of  $(4.2) million ($(0.16) per diluted share, after taxes) for the three-month period ended September 30, 2024, as compared to $1.6 million ($0.06 per diluted share, after taxes) for the three-months ended September 30, 2023.

    Operating Results

    The Company’s net interest income totaled $41.9 million during the third quarter of 2024, an increase of $2.4 million, or 6.2% from the year-ago period, and an increase of $0.5 million, or 1.2%, from the second quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.37% during the third quarter of 2024, compared to 3.23% in the year-ago period, and 3.40% in the second quarter of 2024. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. The increase in net interest income compared to the linked quarter was due to an increase in average interest earning assets that was partially offset by a decrease in the net interest margin. Average interest-earning assets were $4.99 billion in the third quarter of 2024, compared to $4.89 billion in the year ago quarter and $4.89 billion in the second quarter of 2024.

    Non-interest income totaled $9.5 million for the third quarter of 2024, compared to $15.6 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

    Net gains on mortgage loans in the third quarters of 2024 and 2023, were approximately $2.2 million and $2.1 million, respectively. The comparative quarterly increase in net gains on mortgage loans was primarily due to an increase in both gain on sale margin on mortgage loans sold and a increase in the volume of mortgage loans sold.

    Mortgage loan servicing, net, generated income (expense) of $(3.1) million and $2.7 million in the third quarters of 2024 and 2023, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates. Mortgage loan servicing, net activity is summarized in the following table:

      Three months ended   Nine months ended
      9/30/2024   9/30/2023   9/30/2024   9/30/2023
      (In thousands)
    Mortgage loan servicing, net:              
    Revenue, net $ 2,248     $ 2,197     $ 6,681     $ 6,612  
    Fair value change due to price   (4,155 )     1,556       (1,979 )     3,364  
    Fair value change due to pay-downs   (1,223 )     (1,085 )     (3,016 )     (2,908 )
    Total $ (3,130 )   $ 2,668     $ 1,686     $ 7,068  
     

    Non-interest expenses totaled $32.6 million in the third quarter of 2024, compared to $32.0 million in the year-ago period.

    The Company recorded income tax expense of $3.5 million in the third quarter of 2024. This compares to an income tax expense of $4.1 million in the third quarter of 2023. The changes in income tax expense principally reflect changes in pre-tax earnings in 2024 relative to 2023.

    Asset Quality

    A breakdown of non-performing loans by loan type is as follows:

      9/30/2024   12/31/2023   9/30/2023
    Loan Type (Dollars in thousands)
    Commercial $ 59     $ 28     $ 31  
    Mortgage   6,525       6,425       6,137  
    Installment   666       970       801  
    Sub total   7,250       7,423       6,969  
    Less – government guaranteed loans   2,102       2,191       2,254  
    Total non-performing loans $ 5,148     $ 5,232     $ 4,715  
    Ratio of non-performing loans to total portfolio loans   0.13 %     0.14 %     0.13 %
    Ratio of non-performing assets to total assets   0.11 %     0.11 %     0.10 %
    Ratio of allowance for credit losses to total non-performing loans   1115.85 %     1044.69 %     1176.99 %
                           

    The provision for credit losses was an expense of $1.49 million and $1.35 million in the third quarters of 2024 and 2023, respectively. We recorded loan net charge offs (recoveries) of $0.31 million and $(0.18) million in the third quarters of 2024 and 2023, respectively. At September 30, 2024, the allowance for credit losses for loans totaled $57.4 million, or 1.46% of total portfolio loans compared to $54.7 million, or 1.44% of total portfolio loans at December 31, 2023.

    Balance Sheet, Capital and Liquidity

    Total assets were $5.26 billion at September 30, 2024, a decrease of $4.5 million from December 31, 2023. Loans, excluding loans held for sale, were $3.94 billion at September 30, 2024, compared to $3.79 billion at December 31, 2023.  Deposits totaled $4.63 billion at September 30, 2024, an increase of $4.0 million from December 31, 2023. This increase is primarily due to increases in savings and interest-bearing checking, reciprocal and time deposits that were partially offset by a decrease in non-interest bearings deposits and brokered time deposits.

    Cash and cash equivalents totaled $121.6 million at September 30, 2024, versus $169.8 million at December 31, 2023. Securities available for sale (“AFS”) totaled $589.0 million at September 30, 2024, versus $679.4 million at December 31, 2023.

    Total shareholders’ equity was $452.4 million at September 30, 2024, or 8.60% of total assets compared to $404.4 million or 7.68% at December 31, 2023. Tangible common equity totaled $422.5 million at September 30, 2024, or $20.22 per share compared to $374.1 million or $17.96 per share at December 31, 2023. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decrease in accumulated other comprehensive loss.

    The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

    Regulatory Capital Ratios 9/30/2024   12/31/2023   Well
    Capitalized
    Minimum
               
    Tier 1 capital to average total assets   9.36 %     8.80 %     5.00 %
    Tier 1 common equity  to risk-weighted assets   11.74 %     11.21 %     6.50 %
    Tier 1 capital to risk-weighted assets   11.74 %     11.21 %     8.00 %
    Total capital to risk-weighted assets   13.00 %     12.46 %     10.00 %
                           

    At September 30, 2024, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.11 billion and $471.7 million, respectively. We also had approximately $771.3 million in fair value of unpledged securities AFS and HTM at September 30, 2024 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $718.0 million.

    Share Repurchase Plan

    On December 19, 2023, the Board of Directors of the Company authorized the 2024 share repurchase plan. Under the terms of the 2024 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2024. The Company did not repurchase any shares of common stock during the first nine months of 2024.

    Earnings Conference Call

    Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, October 24, 2024.

    To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 957797). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/824908063.

    A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 159381). The replay will be available through October 31, 2024.

    About Independent Bank Corporation

    Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

    For more information, please visit our Web site at: IndependentBank.com.

    Forward-Looking Statements
    This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

    Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2023 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

    Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
     
      September 30, 2024   December 31, 2023
      (Unaudited)
      (In thousands, except share
    amounts)
    Assets      
    Cash and due from banks $ 61,503     $ 68,208  
    Interest bearing deposits   60,057       101,573  
    Cash and Cash Equivalents   121,560       169,781  
    Securities available for sale   588,950       679,350  
    Securities held to maturity (fair value of $314,638 at September 30, 2024 and $318,606 at December 31, 2023)   343,362       353,988  
    Federal Home Loan Bank and Federal Reserve Bank stock, at cost   16,099       16,821  
    Loans held for sale, carried at fair value   14,029       12,063  
    Loans      
    Commercial   1,825,247       1,679,731  
    Mortgage   1,511,400       1,485,872  
    Installment   605,640       625,298  
    Total Loans   3,942,287       3,790,901  
    Allowance for credit losses   (57,444 )     (54,658 )
    Net Loans   3,884,843       3,736,243  
    Other real estate and repossessed assets, net   781       569  
    Property and equipment, net   35,250       35,523  
    Bank-owned life insurance   54,017       54,341  
    Capitalized mortgage loan servicing rights, carried at fair value   40,204       42,243  
    Other intangibles   1,617       2,004  
    Goodwill   28,300       28,300  
    Accrued income and other assets   130,256       132,500  
    Total Assets $ 5,259,268     $ 5,263,726  
    Liabilities and Shareholders’ Equity      
    Deposits      
    Non-interest bearing $ 1,023,739     $ 1,076,093  
    Savings and interest-bearing checking   1,947,571       1,905,701  
    Reciprocal   995,469       832,020  
    Time   620,446       524,325  
    Brokered time   39,650       284,740  
    Total Deposits   4,626,875       4,622,879  
    Other borrowings         50,026  
    Subordinated debt   39,567       39,510  
    Subordinated debentures   39,779       39,728  
    Accrued expenses and other liabilities   100,678       107,134  
    Total Liabilities   4,806,899       4,859,277  
           
    Shareholders’ Equity      
    Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding          
    Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,893,800 shares at September 30, 2024 and 20,835,633 shares at December 31, 2023   318,216       317,483  
    Retained earnings   192,405       159,108  
    Accumulated other comprehensive loss   (58,252 )     (72,142 )
    Total Shareholders’ Equity   452,369       404,449  
    Total Liabilities and Shareholders’ Equity $ 5,259,268     $ 5,263,726  
    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Consolidated Statements of Operations
     
      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
      2024   2024   2023   2024   2023
      (Unaudited)
      (In thousands, except per share amounts)
    Interest Income                                      
    Interest and fees on loans $ 58,410     $ 56,786     $ 51,419     $ 170,239     $ 143,392  
    Interest on securities                  
    Taxable   4,502       4,713       5,865       14,466       17,668  
    Tax-exempt   3,404       3,400       3,409       10,195       9,775  
    Other investments   2,018       1,439       1,739       4,898       3,481  
    Total Interest Income   68,334       66,338       62,432       199,798       174,316  
    Interest Expense                  
    Deposits   24,462       22,876       20,743       70,148       51,964  
    Other borrowings and subordinated debt and debentures   2,018       2,116       2,262       6,253       6,134  
    Total Interest Expense   26,480       24,992       23,005       76,401       58,098  
    Net Interest Income   41,854       41,346       39,427       123,397       116,218  
    Provision for credit losses   1,488       19       1,350       2,251       6,827  
    Net Interest Income After Provision for Credit Losses   40,366       41,327       38,077       121,146       109,391  
    Non-interest Income                  
    Interchange income   4,146       3,401       4,100       10,698       10,660  
    Service charges on deposit accounts   3,085       2,937       3,309       8,894       9,300  
    Net gains (losses) on assets                  
    Mortgage loans   2,177       1,333       2,099       4,874       5,475  
    Equity securities at fair value   (8 )     2,693             2,685        
    Securities available for sale   (145 )                 (414 )     (222 )
    Mortgage loan servicing, net   (3,130 )     2,091       2,668       1,686       7,068  
    Other   3,383       2,717       3,435       8,818       9,298  
    Total Non-interest Income   9,508       15,172       15,611       37,241       41,579  
    Non-interest Expense                  
    Compensation and employee benefits   20,048       21,251       19,975       62,069       59,916  
    Data processing   3,379       3,257       3,071       9,891       8,953  
    Occupancy, net   1,893       1,886       1,971       5,853       5,975  
    Interchange expense   1,149       1,127       1,119       3,373       3,222  
    Furniture, fixtures and equipment   932       948       927       2,834       2,782  
    FDIC deposit insurance   664       695       677       2,141       2,209  
    Loan and collection   657       699       520       1,868       1,718  
    Advertising   581       788       360       1,860       1,286  
    Legal and professional   687       544       543       1,717       1,623  
    Communications   519       499       568       1,633       1,871  
    Costs (recoveries) related to unfunded lending commitments   113       (137 )     451       (676 )     76  
    Other   1,961       1,776       1,854       5,546       5,610  
    Total Non-interest Expense   32,583       33,333       32,036       98,109       95,241  
    Income Before Income Tax   17,291       23,166       21,652       60,278       55,729  
    Income tax expense   3,481       4,638       4,109       11,949       10,405  
    Net Income $ 13,810     $ 18,528     $ 17,543     $ 48,329     $ 45,324  
    Net Income Per Common Share                  
    Basic $ 0.66     $ 0.89     $ 0.84     $ 2.31     $ 2.16  
    Diluted $ 0.65     $ 0.88     $ 0.83     $ 2.29     $ 2.14  
    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data
     
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (unaudited)
      (Dollars in thousands except per share data)
    Three Months Ended                  
    Net interest income $ 41,854     $ 41,346     $ 40,197     $ 40,111     $ 39,427  
    Provision for credit losses   1,488       19       744       (617 )     1,350  
    Non-interest income   9,508       15,172       12,561       9,097       15,611  
    Non-interest expense   32,583       33,333       32,193       31,878       32,036  
    Income before income tax   17,291       23,166       19,821       17,947       21,652  
    Income tax expense   3,481       4,638       3,830       4,204       4,109  
    Net income $ 13,810     $ 18,528     $ 15,991     $ 13,743     $ 17,543  
                       
    Basic earnings per share $ 0.66     $ 0.89     $ 0.77     $ 0.66     $ 0.84  
    Diluted earnings per share   0.65       0.88       0.76       0.65       0.83  
    Cash dividend per share   0.24       0.24       0.24       0.23       0.23  
                       
    Average shares outstanding   20,896,019       20,901,741       20,877,067       20,840,680       20,922,431  
    Average diluted shares outstanding   21,115,273       21,105,387       21,079,607       21,049,030       21,114,445  
                       
    Performance Ratios                  
    Return on average assets   1.04 %     1.44 %     1.24 %     1.04 %     1.34 %
    Return on average equity   12.54       17.98       15.95       14.36       18.68  
    Efficiency ratio (1)   62.82       61.49       60.26       64.27       57.52  
                       
    As a Percent of Average Interest-Earning Assets (1)                
    Interest income   5.48 %     5.45 %     5.34 %     5.29 %     5.10 %
    Interest expense   2.11       2.05       2.04       2.03       1.87  
    Net interest income   3.37       3.40       3.30       3.26       3.23  
                       
    Average Balances                  
    Loans $ 3,909,954     $ 3,849,199     $ 3,810,526     $ 3,764,752     $ 3,694,534  
    Securities   933,750       944,435       999,140       1,027,240       1,071,211  
    Total earning assets   4,985,842       4,893,367       4,910,669       4,928,697       4,892,208  
    Total assets   5,275,623       5,181,317       5,201,452       5,233,666       5,192,114  
    Deposits   4,616,119       4,531,917       4,561,645       4,612,797       4,577,796  
    Interest bearing liabilities   3,689,684       3,611,972       3,627,446       3,635,771       3,554,179  
    Shareholders’ equity   438,077       414,549       403,225       379,614       372,667  

    (1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

    INDEPENDENT BANK CORPORATION AND SUBSIDIARIES
    Selected Financial Data (continued)
     
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (unaudited)
      (Dollars in thousands except per share data)
    End of Period                  
    Capital                  
    Tangible common equity ratio   8.08 %     7.63 %     7.41 %     7.15 %     6.67 %
    Tangible common equity ratio excluding accumulated other comprehensive loss   8.99       8.76       8.57       8.31       8.20  
    Average equity to average assets   8.30       8.00       7.75       7.25       7.18  
    Total capital to risk-weighted assets (2)   14.25       14.21       13.85       13.71       13.58  
    Tier 1 capital to risk-weighted assets (2)   12.06       12.01       11.65       11.50       11.37  
    Common equity tier 1 capital to risk-weighted assets (2)   11.16       11.09       10.73       10.58       10.44  
    Tier 1 capital to average assets (2)   9.63       9.59       9.29       9.03       8.94  
    Common shareholders’ equity per share of common stock $ 21.65     $ 20.60     $ 19.88     $ 19.41     $ 17.99  
    Tangible common equity per share of common stock   20.22       19.16       18.44       17.96       16.53  
    Total shares outstanding   20,893,800       20,899,358       20,903,677       20,835,633       20,850,455  
                       
    Selected Balances                  
    Loans $ 3,942,287     $ 3,851,889     $ 3,839,965     $ 3,790,901     $ 3,741,486  
    Securities   932,312       936,194       963,577       1,033,338       1,043,540  
    Total earning assets   4,964,784       4,979,555       4,949,496       4,954,696       4,884,720  
    Total assets   5,259,268       5,277,500       5,231,255       5,263,726       5,200,018  
    Deposits   4,626,875       4,614,328       4,582,414       4,622,879       4,585,612  
    Interest bearing liabilities   3,682,482       3,694,025       3,677,060       3,676,050       3,573,187  
    Shareholders’ equity   452,369       430,459       415,570       404,449       374,998  

    (2) September 30, 2024 are Preliminary.

     
    Reconciliation of Non-GAAP Financial Measures
    Independent Bank Corporation

    Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends.  Tangible common equity is used by the Company to measure the quality of capital.

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
        2024       2023       2024       2023  
      (Dollars in thousands)
    Net Interest Margin, Fully Taxable Equivalent (“FTE”)              
                   
    Net interest income $ 41,854     $ 39,427     $ 123,397     $ 116,218  
    Add:  taxable equivalent adjustment   158       202       513       722  
    Net interest income – taxable equivalent $ 42,012     $ 39,629     $ 123,910     $ 116,940  
    Net interest margin (GAAP) (1)   3.35 %     3.21 %     3.34 %     3.25 %
    Net interest margin (FTE) (1)   3.37 %     3.23 %     3.35 %     3.26 %

    (1) Annualized.

    Tangible Common Equity Ratio

      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
      December 31,
    2023
      September 30,
    2023
      (Dollars in thousands)
    Common shareholders’ equity $ 452,369     $ 430,459     $ 415,570     $ 404,449     $ 374,998  
    Less:                  
    Goodwill   28,300       28,300       28,300       28,300       28,300  
    Other intangibles   1,617       1,746       1,875       2,004       2,141  
    Tangible common equity   422,452       400,413       385,395       374,145       344,557  
    Addition:                  
    Accumulated other comprehensive loss for regulatory purposes   52,454       65,030       65,831       66,344       86,507  
    Tangible common equity excluding other comprehensive loss adjustments $ 474,906     $ 465,443     $ 451,226     $ 440,489     $ 431,064  
                       
    Total assets $ 5,259,268     $ 5,277,500     $ 5,231,255     $ 5,263,726     $ 5,200,018  
    Less:                  
    Goodwill   28,300       28,300       28,300       28,300       28,300  
    Other intangibles   1,617       1,746       1,875       2,004       2,141  
    Tangible assets   5,229,351       5,247,454       5,201,080       5,233,422       5,169,577  
    Addition:                  
    Net unrealized losses on available for sale securities and derivatives, net of tax   52,454       65,030       65,831       66,344       86,507  
    Tangible assets excluding other comprehensive loss adjustments $ 5,281,805     $ 5,312,484     $ 5,266,911     $ 5,299,766     $ 5,256,084  
                       
    Common equity ratio   8.60 %     8.16 %     7.94 %     7.68 %     7.21 %
    Tangible common equity ratio   8.08 %     7.63 %     7.41 %     7.15 %     6.67 %
    Tangible common equity ratio excluding other comprehensive loss   8.99 %     8.76 %     8.57 %     8.31 %     8.20 %
                       
    Tangible Common Equity per Share of Common Stock:
                       
    Common shareholders’ equity $ 452,369     $ 430,459     $ 415,570     $ 404,449     $ 374,998  
    Tangible common equity $ 422,452     $ 400,413     $ 385,395     $ 374,145     $ 344,557  
    Shares of common stock outstanding (in thousands)   20,894       20,899       20,904       20,836       20,850  
                       
    Common shareholders’ equity per share of common stock $ 21.65     $ 20.60     $ 19.88     $ 19.41     $ 17.99  
    Tangible common equity per share of common stock $ 20.22     $ 19.16     $ 18.44     $ 17.96     $ 16.53  
     

    The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets.  Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

    Contact: William B. Kessel, President and CEO, 616.447.3933
      Gavin A. Mohr, Chief Financial Officer, 616.447.3929  

    The MIL Network

  • MIL-OSI: Hanmi Financial Declares Cash Dividend of $0.25 per share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, Oct. 24, 2024 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today announced that its Board of Directors declared a cash dividend on its common stock for the 2024 fourth quarter of $0.25 per share. The dividend will be paid on November 20, 2024, to stockholders of record as of the close of business on November 4, 2024.

    About Hanmi Financial Corporation
    Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

    Forward-Looking Statements

    This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

    • a failure to maintain adequate levels of capital and liquidity to support our operations;
    • general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
    • volatility and deterioration in the credit and equity markets;
    • changes in consumer spending, borrowing and savings habits;
    • availability of capital from private and government sources;
    • demographic changes;
    • competition for loans and deposits and failure to attract or retain loans and deposits;
    • inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
    • risks of natural disasters;
    • legal proceedings and litigation brought against us;
    • a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
    • the failure to maintain current technologies;
    • risks associated with Small Business Administration loans;
    • failure to attract or retain key employees;
    • our ability to access cost-effective funding;
    • changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
    • fluctuations in real estate values;
    • changes in accounting policies and practices;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
    • the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
    • strategic transactions we may enter into;
    • the adequacy of and changes in the methodology for computing our allowance for credit losses;
    • our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
    • changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
    • our ability to control expenses; and
    • cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

    In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

    Investor Contacts:
    Romolo (Ron) Santarosa
    Senior Executive Vice President & Chief Financial Officer
    213-427-5636

    Lisa Fortuna
    Investor Relations
    Financial Profiles, Inc.
    lfortuna@finprofiles.com
    310-622-8251

    Source: Hanmi Bank

    The MIL Network

  • MIL-OSI: NANO Nuclear Energy Announces Pricing of Upsized $36 Million Underwritten Offering

    Source: GlobeNewswire (MIL-OSI)

    New York, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear”), a vertically integrated advanced nuclear energy and technology company developing portable clean nuclear energy solutions, today announced that it has priced an upsized firm commitment, registered underwritten public offering of 2,117,646 shares of common stock and common stock purchase warrants to purchase 1,058,823 shares of common stock.

    Each share and associated warrant is being sold at a public offering price of $17.00, for gross proceeds of approximately $36 million, before deducting underwriting discounts and offering expenses. In addition, NANO Nuclear has granted the underwriter a 30-day overallotment option to purchase up to an additional 317,646 shares common stock and/or common stock purchase warrants to purchase 158,823 shares of common stock at the public offering price for gross proceeds of up to $5.4 million, less underwriting discounts and expenses.

    While the shares and associated warrants were marketed as a unit, such units have no stand-alone rights and will not be certificated or issued as stand-alone securities.

    The warrants are exercisable immediately, have a term of five years, and have an exercise price of $17.00 per share. The warrants will not trade on any market.

    The Benchmark Company, LLC is acting as sole book-running manager for the offering.

    NANO Nuclear intends to use the net proceeds from this offering for (i) research and development of its products and technologies, including its ‘ZEUS’ and ‘ODIN’ microreactors and nuclear fuel transportation design optimization, fuel facility investigations and development, test work and scoping studies, and other technology research and development; (ii) marketing, promotion and business development activities; and (iii) regulatory compliance, intellectual property protection, hiring additional employees, retaining additional contractors and building out NANO Nuclear’s new Nuclear Technology Headquarters in Oak Ridge, Tennessee. NANO Nuclear may also use a portion of the net proceeds to acquire, license and invest in complementary products, technologies, or additional businesses, although NANO Nuclear currently has no agreements or commitments with respect to any such transaction.

    The offering is expected to close on or about October 25, 2024, subject to the satisfaction of customary closing conditions.

    Registration statements relating to these securities were previously filed with the U.S. Securities and Exchange Commission (“SEC”) and have become effective. The offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from The Benchmark Company, LLC, 150 East 58th St., 17th Floor, New York, NY 10155, by telephone: (212) 312-6700, or by email at Prospectus@benchmarkcompany.com.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About NANO Nuclear Energy Inc.

    NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across four business lines: (i) cutting edge portable microreactor technology, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation and (iv) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

    Led by a world-class nuclear engineering team, NANO Nuclear’s products in technical development are “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.

    Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

    HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

    NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

    For further information, please contact:

    Email: IR@NANONuclearEnergy.com
    Business Tel: (212) 634-9206

    Cautionary Note Regarding Forward Looking Statements

    This news release and statements of NANO Nuclear’s management in connection with this news release or related events contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements (including statements related to the public offering, including the proposed use of proceeds from such offering, as described herein) related to future events, which may impact our expected future business and financial performance, and often contain words such as “seek,” “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, some of which may be beyond our control. Readers are cautioned that actual results may differ materially and adversely from the results implied in forward-looking statements. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology, including difficulties with design and testing, cost overruns, regulatory delays and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (vi) similar risks and uncertainties associated with the business of a start-up business operating a highly regulated industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all of the factors that could cause actual results to differ from those discussed in any forward-looking statement, and the Company therefore encourages investors to review other factors that may affect future results in the Company’s filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Readers are cautioned not to place undue reliance on forward-looking statements, which apply only as of the date of this news release, and forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network

  • MIL-OSI: Key Advocates Urge CMS to Clarify that Fully Implanted Active Middle Ear Hearing Devices are Prosthetic Devices for Purposes of Medicare Coverage

    Source: GlobeNewswire (MIL-OSI)

    Twelve Members of the Independence Through Enhancement of Medicare and Medicaid (ITEM) Coalition Sign Letter to CMS Seeking Clarification of Prior Decision Making and Action to Bring Novel Hearing Technology to Medicare Beneficiaries

    WHITE BEAR LAKE, Minnesota, Oct. 24, 2024 (GLOBE NEWSWIRE) — Envoy Medical®, Inc. (“Envoy Medical”) (NASDAQ: “COCH”), a hearing health company focused on fully implanted hearing systems, expresses gratitude to the Independence Through Enhancement of Medicare and Medicaid (“ITEM”) Coalition and the twelve ITEM member signatories for sending a strong letter to CMS supporting a reconsideration of the benefit category for fully implanted active middle ear hearing devices.

    The letter states in part: “[W]e request that you please provide an explanation as to CMS’ reasoning for determining that fully implanted active middle ear hearing devices do not qualify as an exception to the hearing aid exclusion under statute. In addition, we believe CMS has the authority to reconsider their decision and urge you to clarify that this technology qualifies as a prosthetic device for purposes of Medicare coverage.”
    ITEM is a national consumer- and clinician-led coalition advocating for access to and coverage of assistive devices, technologies, and related services for people with injuries, illnesses, disabilities, and chronic conditions of all ages. Members represent individuals with a wide range of disabling conditions, as well as the providers who serve them.

    In the letter to CMS, ITEM referenced the profound impact that hearing loss has on quality of life of Medicare beneficiaries. The Hearing Loss Association of America (HLAA) and Alexander Graham Bell Association for the Deaf and Hard of Hearing (AGBA) were two of the twelve organizations willing to lend their voice and influence to the Medicare beneficiaries with significant hearing loss who want access to novel hearing implants.

    “We are grateful that the ITEM Coalition took up such a critically important issue and that twelve coalition member organizations signed the letter urging CMS to do the right thing,” commented Brent Lucas, Envoy Medical CEO. “It especially hits home that the Coalition’s mission is in their name — ‘Independence Through Enhancement of Medicare and Medicaid’ – and we strongly believe that fully implanted hearing devices can help Medicare beneficiaries with hearing impairments significantly regain, or maintain, a level of independence that is good for them and for society as a whole.”

    Envoy Medical is one of the few companies worldwide that has a fully implanted active middle ear implant and is currently the only company that has an FDA-approved, fully implanted active middle ear hearing device.

    About the Esteem® Fully Implanted Active Middle Ear Implant (FI-AMEI)

    The Esteem fully implanted active middle ear implant (FI-AMEI) is the only FDA-approved, fully implanted* hearing device for adults diagnosed with moderate to severe sensorineural hearing loss allowing for 24/7 hearing capability using the ear’s natural anatomy. The Esteem FI-AMEI hearing implant is invisible and requires no externally worn components and nothing is placed in the ear canal for it to function. Unlike hearing aids, you never put it on or take it off. You can’t lose it. You don’t clean it. The Esteem FI-AMEI hearing implant offers true 24/7 hearing.

    *Once activated, the external Esteem FI-AMEI Personal Programmer is not required for daily use.

    Important safety information for the Esteem FI-AMEI can be found at: https://www.envoymedical.com/safety-information.

    About the Fully Implanted Acclaim® Cochlear Implant

    We believe the fully implanted Acclaim Cochlear Implant (“Acclaim CI”) will be a first-of-its-kind fully implanted cochlear implant. Envoy Medical’s fully implanted technology includes a sensor designed to leverage the natural anatomy of the ear instead of a microphone to capture sound.

    The Acclaim CI is designed to address severe to profound sensorineural hearing loss that is not adequately addressed by hearing aids. The Acclaim CI is expected to be indicated for adults who have been deemed adequate candidates by a qualified physician.

    The Acclaim Cochlear Implant received the Breakthrough Device Designation from the U.S. Food and Drug Administration (FDA) in 2019. We believe the Acclaim CI was the first hearing-focused device to receive Breakthrough Device Designation.

    CAUTION The fully implanted Acclaim Cochlear Implant is an investigational device. Limited by Federal (or United States) law to investigational use.

    Additional Information and Where to Find It

    Copies of the documents filed by Envoy Medical with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov.

    Forward-Looking Statements

    This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-Looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. Such statements may include, but are not limited to, statements regarding the expectations of Envoy Medical concerning the outlook for its business, productivity, plans and goals for future operational improvements and capital investments; the potential for passage of legislation or change to CMS’ position related to reimbursement for active middle ear hearing devices; the impact that such proposed legislation might have on the hearing health market, reimbursement for the Esteem FI-AMEI device, and the Envoy Medical business, and future market conditions or economic performance, as well as any information concerning possible or assumed future operations of Envoy Medical. The forward-looking statements contained in this press release reflect Envoy Medical’s current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause its actual results to differ significantly from those expressed in any forward-looking statement. Envoy Medical does not guarantee that the events described will happen as described (or that they will happen at all). These forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to changes in the market price of shares of Envoy Medical’s Class A Common Stock; changes in or removal of Envoy Medical’s shares inclusion in any index; Envoy Medical’s success in retaining or recruiting, or changes required in, its officers, key employees or directors; unpredictability in the medical device industry, the regulatory process to approve medical devices, and the clinical development process of Envoy Medical products; competition in the medical device industry, and the failure to introduce new products and services in a timely manner or at competitive prices to compete successfully against competitors; disruptions in relationships with Envoy Medical’s suppliers, or disruptions in Envoy Medical’s own production capabilities for some of the key components and materials of its products; changes in the need for capital and the availability of financing and capital to fund these needs; changes in interest rates or rates of inflation; legal, regulatory and other proceedings could be costly and time-consuming to defend; changes in applicable laws or regulations, or the application thereof on Envoy Medical; a loss of any of Envoy Medical’s key intellectual property rights or failure to adequately protect intellectual property rights; the effects of catastrophic events, including war, terrorism and other international conflicts; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements” in the Annual Report on Form 10-K filed by Envoy Medical on April 1, 2024, and in other reports Envoy Medical files, with the SEC. If any of these risks materialize or Envoy Medical’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. While forward-looking statements reflect Envoy Medical’s good faith beliefs, they are not guarantees of future performance. Envoy Medical disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Envoy Medical. 

    ###

    Investor Contact:
    CORE IR
    516-222-2560
    investorrelations@envoymedical.com

    The MIL Network

  • MIL-OSI: Equipment Leasing and Finance Association CapEx Finance Index: September 2024

    Source: GlobeNewswire (MIL-OSI)

    ********************************************************************************************************
    Note to readers: ELFA has updated the name of the Monthly Leasing and Finance Index (MLFI-25) to the CapEx Finance Index (CFI) to better reflect what it measures and how it impacts the broader U.S. economy.
    ********************************************************************************************************

    WASHINGTON, Oct. 24, 2024 (GLOBE NEWSWIRE) —

    Demand for equipment picked up. New business volume grew by $10.0 billion from August to September, a monthly increase of 2.2% before rounding. Growth in business volume has been uneven in 2024 but continues to hover around historic highs. The September release suggests that equipment investment continued to expand at a healthy pace at the end of the third quarter.  

    Bank lending drove new business growth. The sub-index for business volume at banks grew by 10.9% from August to September, which was more than enough to offset the contraction in activity at captives and independents, which declined by 2.3% and 9.8%, respectively. The figure below shows that bank activity has lagged other sources over the last few years, but the latest data suggests that banks may be easing back into the lending and leasing market.

    Lenders continue to add headcount. The 12-month change in employment was just over 1.0%, slightly slowing from the 1.2% pace recorded in August. Employment has been a source of strength this year, following nearly five years of persistent declines in headcount.

    Credit approvals remained steady. The percentage of credit applications approved ticked down 0.7 percentage points to 75.6%. The approval rate has been hovering around 75% for most of 2024.

    Lender balance sheets improved for a second consecutive month. The percentage of credit lines over 30 days past due and charge-offs declined. Both have been trending up over the last two years as borrowing conditions tightened due to the rapid increase in interest rates.

    Industry Confidence
    The Monthly Confidence Index from ELFA’s affiliate, the Equipment Leasing & Finance Foundation, is 61.8 in October, steady with the September index of 61.9, which was the highest level since January 2022.

    Industry Voices

    “Our latest CapEx Finance Survey showed that equipment demand continued to defy high interest rates in September. The uptick in bank lending was particularly encouraging and is something I will be watching closely as we approach the end of the year. I wouldn’t be surprised if the next few surveys show a cooling in lending volumes as election uncertainty peaks and some businesses wait for rates to drop further. That said, balance sheets continued to improve, and the percentage of approved new credit applications remained healthy, signs that lenders and borrowers are in a great position to weather any gusts that might come along in the fourth quarter.”
    ELFA President and CEO, Leigh Lytle

    “A healthy increase in YOY business volume, especially in August and September, validates our 12-month increase in headcount as we continue strengthening our value proposition for all of CEFI’s stakeholders. A decreasing interest rate environment driving increased business volume and net interest margin will enhance bottom-line returns for CEFI and the industry until competitors become more aggressive.” Ricardo E. Rios, CFA, CLFP, President & COO, Commercial Equipment Finance, Inc (CEFI)

    About ELFA’s CFI
    The CFI is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce’s durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The CFI consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/CFI.

    About ELFA
    The Equipment Leasing and Finance Association (ELFA) represents financial services companies and manufacturers in the $1 trillion U.S. equipment finance sector. ELFA’s 575 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses’ success, U.S. economic growth, manufacturing and jobs at http://www.elfaonline.org.

    Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, avogt@elfaonline.org

    Photos accompanying this announcement are available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/cee789e6-c777-4190-9b5d-4361b6712379

    https://www.globenewswire.com/NewsRoom/AttachmentNg/721cf1e0-33c3-4767-882b-bceb720b01b1

    The MIL Network

  • MIL-OSI: CareCloud To Announce Third Quarter 2024 Results on November 12, 2024

    Source: GlobeNewswire (MIL-OSI)

    SOMERSET, N.J., Oct. 24, 2024 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO, CCLDP), a leader in healthcare technology and generative AI solutions for medical practices and health systems nationwide, will release its financial results for the quarter ended September 30, 2024 before the market opens on Tuesday, November 12, 2024. The Company will follow with a conference call for investors at 8:30 a.m. Eastern Time.

    The live webcast of the conference call and related presentation slides can be accessed at ir.carecloud.com/events. An audio-only option is available by dialing 201-389-0920 and referencing “CareCloud Third Quarter 2024 Earnings Call.” Investors who opt for audio-only will need to download the related slides at ir.carecloud.com/events.

    A replay of the conference call and related presentation slides will be available approximately one hour after conclusion of the call at the same link. An audio-only option can also be accessed by dialing 412-317-6671 and providing the access code 13749163.

    About CareCloud

    CareCloud (Nasdaq: CCLD, CCLDP, CCLDO) brings disciplined innovation and generative AI solutions to the business of healthcare. Our suite of technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 40,000 providers count on CareCloud to help them improve patient care while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at www.carecloud.com.

    Follow CareCloud on LinkedInX and Facebook.

    For additional information, please visit our website at www.carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

    SOURCE CareCloud

    Company Contact:
    Norman Roth
    Interim Chief Financial Officer and Corporate Controller
    CareCloud, Inc.
    nroth@carecloud.com

    Investor Contact:
    Stephen Snyder
    President
    CareCloud, Inc.
    ir@carecloud.com

    The MIL Network

  • MIL-OSI: Nasdaq Giants and Rising Innovators Face Critical Earnings Reports This Quarter

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., Oct. 24, 2024 (GLOBE NEWSWIRE) — FN Media Group Market Commentary – Investors Brace for a High-Stakes Earnings Season as Key Players in Tech, EVs, and AI Reveal Their Performance. As earnings season heats up, several companies listed on the Nasdaq exchange are under the microscope. From emerging innovators to established market leaders, each faces unique challenges that will be revealed in their quarterly reports. The stakes are high, with market sentiment, stock prices, and future growth trajectories hanging in the balance. This quarter, Siyata Mobile (NASDAQ: SYTA), Rivian (NASDAQ: RIVN), Tesla (NASDAQ: TSLA), and Nvidia (NASDAQ: NVDA) are at critical junctures that could shift the momentum of their stocks and influence broader market trends.

    Siyata Mobile (NASDAQ: SYTA), a growing micro-cap, is set to take center stage on November 14 when it releases earnings. The company’s aggressive strategy of partnering with major wireless carriers is being put to the test following a recently inked deal with T-Mobile (NASDAQ: TMUS). Siyata’s push-to-talk (PTT) technology promises to disrupt traditional communication methods, and investors are watching closely to see if these efforts result in significant revenue growth. CEO Marc Seelenfreund has touted the potential for transformation, but the company now faces its most pivotal moment. The upcoming earnings will reveal whether the capital raised to meet carrier demands will pay off or leave investors disappointed. To read a recent MicroCapReports article on Siyata Mobile, please visit: https://microcapreports.com/lander/siyata-mobile/

    Rivian (NASDAQ: RIVN) is a company striving to balance growth and cost control. As a prominent name in the electric vehicle (EV) market, Rivian has rapidly scaled its operations, but the rising costs of production are raising questions about long-term profitability. This quarter, the pressure is on for Rivian to deliver strong financial results that reassure investors about its capacity to manage expenses while continuing to grow its EV footprint. Rivian’s performance will be scrutinized as the company seeks to maintain its valuation and prove it can stand alongside giants like Tesla in the competitive EV space.

    Tesla (NASDAQ: TSLA), a leader in the global EV market, faces increasing competition from both established automakers and new entrants. Despite being a market darling for years, Tesla’s margins are under pressure due to the rising costs of materials, increased production, and the need to invest in new technologies like autonomous driving and battery development. Investors will be looking for signs of resilience in Tesla’s earnings report, particularly in how the company manages competition and continues to grow its international market share while staying profitable.

    Nvidia (NASDAQ: NVDA), a heavyweight in the tech sector, has enjoyed an extraordinary run as demand for its advanced chips surged alongside the rise of AI applications. However, recent regulatory pressures and slowing growth in consumer-facing products have placed Nvidia at a crossroads. This quarter, Nvidia must demonstrate that its strength in AI and data centers will continue to drive revenue growth, even as global chip demand cools. Investors are particularly eager to see whether Nvidia’s strategic investments in AI can maintain its dominant position in the semiconductor industry.

    For each of these Nasdaq-listed companies, the upcoming earnings reports are far more than just financial check-ins—they are critical milestones that could determine the trajectory of these businesses in the near term. Whether they meet or exceed expectations will shape not only their individual stock movements but also broader market trends in sectors like technology, EVs, and AI.

    As investor sentiment builds, market participants should prepare for a high-stakes season filled with opportunity, risk, and potential surprises.

    About FN Media Group:

    At FN Media Group, via our top-rated online news portal at www.financialnewsmedia.com, we are one of the very few select firms providing top tier one syndicated news distribution, targeted ticker tag press releases and stock market news coverage for today’s emerging companies. #tickertagpressreleases #pressreleases

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    DISCLAIMER: MicroCapReports is the originator of the content set forth above. References to any issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has not been compensated by any publicly listed company listed herein. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

    This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

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    SOURCE: FN Media Group

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