Category: Business

  • MIL-OSI: SOLOWIN HOLDINGS Announces New Equity Research Report from Diamond Equity Research

    Source: GlobeNewswire (MIL-OSI)

    HONG KONG, Oct. 23, 2024 (GLOBE NEWSWIRE) — SOLOWIN HOLDINGS (Nasdaq: SWIN) (“SOLOWIN” or the “Company”), a securities brokerage company that offers comprehensive financial services primarily to Chinese investors globally, today announced the release of a new research report from Diamond Equity Research, an issuer sponsored equity research firm focused on small capitalization companies, covering the Company’s ordinary shares.

    The Company has worked with Diamond Equity Research to perform independent research that will create greater awareness and exposure in the investment community for the Company’s comprehensive financial services. The new report is available at https://ml.globenewswire.com/Resource/Download/e6dc93a4-4889-4bb6-a8e2-97c15cafd474.

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

    About SOLOWIN HOLDINGS

    Solowin Holdings (NASDAQ: SWIN) is a Hong Kong based financial services firm providing a comprehensive one-stop solution for high-net-worth and institutional investors worldwide. Spanning both traditional and virtual assets, Solowin’s offerings include investment banking, wealth management, asset management, and Web3 solutions, tailored to support the next generation of investors. Solowin’s wholly owned subsidiary, Solomon JFZ (Asia) Holdings Limited (“Solomon JFZ”), is one of Hong Kong’s first batch regulated virtual asset service providers. Its advanced electronic platform, Solomon VA+, is Hong Kong’s first app to integrate traditional and virtual asset trading with wealth management services.

    For more information, visit the Company’s website at https://solowin.io

    Or investor relationship website at http://ir.solomonwin.com.hk

    About Diamond Equity Research

    Diamond Equity Research is an equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms. For more information, please visit www.diamondequityresearch.com.

    Forward-Looking Statements

    Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the Company’s most recent annual report on Form 20-F as well as in other reports filed or furnished from time to time with the SEC. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the SEC, which are available for review at www.sec.gov.

    For investor and media inquiries please contact:

    SOLOWIN HOLDINGS
    Investor Relations Department
    Email: ir@solomonwin.com.hk

    Ascent Investor Relations LLC
    Tina Xiao
    Phone: +1-646-932-7242
    Email: investors@ascent-ir.com

    The MIL Network

  • MIL-OSI: TransAlta Declares Dividends

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 23, 2024 (GLOBE NEWSWIRE) — The Board of Directors of TransAlta Corporation (TSX: TA) (NYSE: TAC) declared a quarterly dividend of $0.06 per common share payable on January 1, 2025, to shareholders of record at the close of business on December 1, 2024.

    The Board of Directors also declared the following quarterly dividend on its Cumulative Redeemable Rate Reset First Preferred Shares for the period starting from and including September 30, 2024, up to but excluding December 31, 2024:

    Preferred Shares TSX Stock Symbol Dividend Rate Dividend Per Share Record Date Payment Date
    Series A TA.PR.D 2.877% $0.17981 December 1, 2024 December 31, 2024
    Series B* TA.PR.E 6.235% $0.39182 December 1, 2024 December 31, 2024
    Series C TA.PR.F 5.854% $0.36588 December 1, 2024 December 31, 2024
    Series D* TA.PR.G 7.305% $0.45906 December 1, 2024 December 31, 2024
    Series E TA.PR.H 6.894% $0.43088 December 1, 2024 December 31, 2024
    Series G TA.PR.J 6.773% $0.42331 December 1, 2024 December 31, 2024

    * Please note the quarterly floating rate on the Series B and Series D Preferred Shares will be reset every quarter.

    All currency is expressed in Canadian dollars except where noted. When the dividend payment date falls on a weekend or holiday the payment is made the following business day.

    About TransAlta Corporation:

    TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 113 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

    For more information about TransAlta, visit our web site at transalta.com.

    For more information:

    Investor Inquiries: Media Inquiries:
    Phone: 1-800-387-3598 in Canada and US Phone: 1-855-255-9184
    Email: investor_relations@transalta.com Email: ta_media_relations@transalta.com

    The MIL Network

  • MIL-OSI: Innventure, Inc. Announces Financing Agreements to Further Strengthen Balance Sheet

    Source: GlobeNewswire (MIL-OSI)

    Enters $50 Million Secured Line of Credit with Western Technology Investment

    Issues Approximately $11 Million of Series B Preferred Stock

    ORLANDO, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — Innventure, Inc. (Nasdaq: INV) (“Innventure”), a technology commercialization platform, today announced two financing arrangements to bolster its capital position and provide additional operating flexibility.

    The Company entered into a $50 million secured line of credit (the “Line of Credit”) with Western Technology Investment (“WTI”). The Company expects to draw on the Line of Credit in multiple installments through March 31, 2025, subject to the satisfaction of certain conditions and achievement of certain commercial milestones by certain dates.

    Innventure also entered into investment agreements at the time of closing of the business combination the (“Business Combination”) with certain qualified investors for the issuance and sale of approximately $11 million of Series B Preferred Stock in a private placement of Series B Preferred Stock. Proceeds from this offering augmented the $11.3 million of trust assets that were not redeemed in connection with the Business Combination.

    “These financing agreements are a testament to Innventure’s differentiated business model and mark a significant milestone as a newly public company,” said Bill Haskell, CEO of Innventure. “The Line of Credit and private placement, together with our conditional $75 million Standby Equity Purchase Agreement with Yorkville, strengthen Innventure’s financial position and provide even greater opportunity to continue identifying, funding and commercializing transformative technologies.”

    About Innventure
    Innventure founds, funds, and operates companies with a focus on transformative, sustainable technology solutions acquired or licensed from multinational corporations. Innventure takes what it believes to be breakthrough technologies from early evaluation to scaled commercialization utilizing an approach designed to help mitigate risk as it builds disruptive companies it believes have the potential to achieve a target enterprise value of at least $1 billion. Innventure defines ‘‘disruptive’’ as innovations that have the ability to significantly change the way businesses, industries, markets and/or consumers operate.

    Cautionary Statement Regarding Forward-Looking Statements

    This press release contains forward-looking statements, including statements about the Company’s business model, the financial condition and prospects of the Company. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may refer to projections and forecasts. Forward-looking statements are often identified by future or conditional words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “will,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking.

    The forward-looking statements are based on the current expectations of the Company’s management and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of this press release. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled “Risk Factors” in the Form S-4, which was filed in connection with the Business Combination and was declared effective by the Securities and Exchange Commission, and those discussed and identified in other public filings made with the Securities and Exchange Commission by the Company and the following: (a) expectations regarding the Company’s and the Innventure Companies’ (as defined below) strategies and future financial performance, including their future business plans, expansion and acquisition plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and the Company’s ability to invest in growth initiatives; (b) the implementation, market acceptance and success of the Company’s and the Innventure Companies’ business models and growth strategies; (c) the Company’s future capital requirements and sources and uses of cash; (d) the Company’s ability to meet the various conditions, including the available cash and performance targets, and access any of the installments draws under the Line of Credit; (e) the Company’s ability to meet the various conditions and satisfy the various limitations under the Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd., including exchange caps, issuances and subscriptions based on trading volumes, to access the funds available under the SEPA; (f) that the Company will have sufficient capital following the completion of the Business Combination to operate as anticipated; (g) the Company’s ability to obtain funding for its operations and future growth; (h) developments and projections relating to the Company’s and the Innventure Companies’ competitors and industry; (i) the Innventure Companies’ ability to meet, and to continue to meet, applicable regulatory requirements for the use of their products and the numerous regulatory requirements generally applicable to their products and facilities; (j) the outcome of any legal proceedings that may be instituted against the Company in connection with the completion of the Business Combination; (k) the Company’s ability to find future opportunities to license or acquire breakthrough technology solutions from multinational corporations (“MNCs”) and to satisfy the requirements imposed by or to avoid disagreements with its current and future MNC partners; (l) the risk that the Company may be deemed an investment company under the Investment Company Act, which would impose burdensome compliance requirements and restrictions on its activities; (m) the Company’s ability to sufficiently protect the intellectual property rights of itself and its subsidiaries, and to avoid or resolve in a timely and cost-effective manner any disputes that may arise relating to its use of the intellectual property of third parties; (n) the risk of a cyber-attack or a failure of the Company’s information technology and data security infrastructure; (o) the ability to recognize the anticipated benefits of the Business Combination; (p) unexpected costs related to the Business Combination; (q) geopolitical risk and changes in applicable laws or regulations; (r) potential adverse effects of other economic, business, and/or competitive factors; and (s) operational risks related to the Company and its subsidiaries.

    Except to the extent required by applicable law or regulation, the Company undertakes no obligation to update statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.

    Media Contact: Laurie Steinberg, Solebury Strategic Communications
    press@innventure.com

    Investor Relations Contact: Sloan Bohlen, Solebury Strategic Communications
    investorrelations@innventure.com

    The MIL Network

  • MIL-OSI: First Bank Announces Third Quarter 2024 Net Income of $8.2 Million

    Source: GlobeNewswire (MIL-OSI)

    Results reflect strong loan and deposit growth, solid asset quality, and balance sheet optimization initiatives

    HAMILTON, N.J., Oct. 23, 2024 (GLOBE NEWSWIRE) — First Bank (Nasdaq Global Market: FRBA) (the Bank) today announced results for the third quarter of 2024. Net income for the third quarter of 2024 was $8.2 million, or $0.32 per diluted share. Return on average assets, return on average equity and return on average tangible equity[i] for the third quarter of 2024 were 0.88%, 8.15% and 9.42%, respectively. The Bank recorded a net loss of $1.3 million, or a loss of $0.05 per diluted share, and losses on average assets, equity, and tangible equityi of 0.14%, 1.43%, and 1.66%, respectively, for the third quarter of 2023. Financial results for the third quarter of 2023 were negatively impacted by the Malvern Bancorp acquisition, completed in July 2023, primarily due to the merger-related expenses and the initial credit loss expense on acquired loans.

    Third Quarter 2024 Performance Highlights:

    • Total loans of $3.09 billion at September 30, 2024 grew $89.5 million, or 11.9%, annualized, from the linked quarter ended June 30, 2024. Loan growth occurred late in the quarter, which is reflected in average loan balance increase of only $12.2 million during the quarter ended September 30, 2024. The growth was primarily driven by $56.9 million expansion within the Commercial and Industrial and Owner-occupied commercial real estate loan categories.
    • Total deposits of $3.05 billion at September 30, 2024 grew $82.4 million, or 11.1%, annualized, from the linked quarter. Growth occurred across all deposit categories, as non-interest bearing demand, interest bearing demand, money market and savings, and time deposits increased $19.3 million, $23.3 million, $36.3 million, and $3.6 million, respectively, from the second quarter of 2024.
    • Tangible book value per share[ii] grew to $13.84 at September 30, 2024, increasing 11.2%, annualized, from $13.46 at June 30, 2024.
    • The Bank continued to prioritize balance sheet efficiency, selling approximately $11.7 million of investment securities during the quarter ended September 30, 2024 which resulted in a $555,000 net loss on the sale of investments during the quarter. The Bank also completed a restructuring of its bank-owned life insurance (BOLI) portfolio during the quarter which resulted in approximately $24 million in terminated policies and the acquisition of approximately $20 million in new policies. As a result of the restructure, the Bank recorded a $1.1 million enhancement to the cash surrender value and recognized additional income tax expense totaling $1.2 million.
    • Strong asset quality continued, with nonperforming assets decreasing by 9 basis points to 0.47% of total assets at September 30, 2024 from 0.56% at June 30, 2024.

    Patrick L. Ryan, President and CEO of First Bank, reflected on the Bank’s performance, stating, “First Bank’s outstanding third quarter growth is an outcome of a well-executed long-term strategy. We have worked to build teams, products, and operating structures that promote quality growth over the long term, and the results are evident. Our teams added high-quality loans and deposits across all categories. We also continued to optimize the Bank’s efficiency as our efficiency ratio[iii] remained below 60% for the 21st consecutive quarter. We continued to enact strategies to enhance future profitability and complement our organic growth efforts including ongoing balance sheet restructuring through the sale of certain lower-yielding investment securities, and we opportunistically restructured our BOLI policies during the quarter, an initiative that will be accretive to future earnings. The current quarter highlighted our efforts to build our core community banking customer base while we expand our specialty banking teams and continued investment in technology to improve the customer experience.”   

    Mr. Ryan added, “We are pleased with our ability to generate solid returns for our shareholders, including this quarter’s 11% annualized growth in tangible book value per share. We continue to explore a variety of opportunities to drive future earnings. Our recent receipt of regulatory approval to initiate stock repurchases also adds to our toolkit of options to support continued and growing returns for our shareholders.”

    Income Statement

    In the third quarter of 2024, the Bank’s net interest income increased to $30.1 million, growing $1.5 million, or 5.2%, compared to the same period in 2023. The increase was primarily due to net interest margin expansion in the third quarter of 2024 compared to the third quarter of 2023. Net interest income decreased $446,000, or 1.5%, from the linked second quarter of 2024. The modest decrease was primarily due to net interest margin compression and the timing of our loan growth, which occurred late in the third quarter, limiting interest income received during the quarter. During the third quarter, a $606,000 increase in interest income compared to the second quarter of 2024 was primarily related to higher earning asset balances, which was offset by a $1.1 million increase in interest expense, resulting from increased deposit costs and a higher level of average borrowings.

    The Bank’s tax equivalent net interest margin of 3.49% for the third quarter of 2024 represented an increase of 13 basis points from the quarter ended September 30, 2023 and a decrease of 13 basis points from the linked quarter ended June 30, 2024. The Bank’s tax equivalent net interest margin includes the impact of amortization and accretion of premiums and discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions. Amortization of premiums and accretion of discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions totaled $3.4 million during the third quarter of 2024, compared to $2.7 million for the quarter ended September 30, 2023 and $3.6 million for the quarter ended June 30, 2024. The Bank’s net interest margin declined compared to the linked second quarter due to lower acquisition accounting accretion income, increased levels of average borrowings, lower average loan yields, and higher interest bearing deposit costs.

    The Bank recorded a credit loss expense totaling $1.6 million during the third quarter of 2024, compared to $63,000 recorded during the second quarter of 2024 and $6.7 million recorded for the third quarter of 2023. The Bank’s credit loss expense for the third quarter of 2024 was commensurate with robust organic loan growth during the quarter and continued to reflect strong and stable asset quality. Credit loss expense for the third quarter of 2023 included a $5.5 million credit loss recorded to establish the allowance for credit losses on the acquired Malvern loan portfolio.

    In the third quarter of 2024, the Bank recorded non-interest income of $2.5 million, compared to $193,000 during the same period in 2023 and $689,000 in the second quarter of 2024. The increase in non-interest income was primarily related to approximately $1.1 million in one-time enhancement to the cash surrender value of BOLI that resulted from the aforementioned BOLI restructuring transaction during the quarter, as well as higher yields earned on the new BOLI policies purchased during the quarter. Additionally, the Bank recorded $135,000 in net gains on the sale of loans during third quarter 2024, compared to net losses on the sale of loans totaling $900,000 and $704,000 in the linked and prior year quarters, respectively. This was partially offset by $555,000 in net losses on the sale of investment securities during third quarter 2024, while no investment securities sales were executed in the linked quarter, and $527,000 in net losses were recognized during the third quarter of 2023.

    Non-interest expense for the third quarter of 2024 was $18.6 million, a decrease of $4.8 million, or 20.6%, compared to $23.4 million for the prior year quarter. Lower non-interest expense was largely due to $7.0 million in merger-related expenses recorded during the third quarter of 2023. Excluding merger-related expenses, non-interest expense grew $2.2 million, or 13.3%, including an increase of $849,000 in salaries and employee benefits due to merit increases and a larger employee base. Other real estate owned (OREO) expense totaled $662,000 during third quarter 2024, with no similar expense recorded in third quarter 2023. The increase reflects a $363,000 impairment of an OREO asset along with other legal and real estate tax expenses recorded during the quarter. Additionally, other professional fees increased $312,000 primarily related to increases in personnel placement costs, consulting fees, and tax services.

    On a linked quarter basis, non-interest expense increased $691,000, or 3.8%, from $18.0 million for the second quarter of 2024. The largest impact on expenses compared to the linked quarter is the aforementioned $363,000 OREO impairment expense during third quarter 2024. Salaries and employee benefits expense increased by $207,000 primarily due to a larger employee base. These were partially offset by modest decreases in marketing and advertising costs, as well as travel and entertainment expenses.

    Income tax expense for the three months ended September 30, 2024 was $4.2 million with an effective tax rate of 33.9%, compared to an income tax benefit of $78,000 for the third quarter of 2023 and an income tax expense of $2.1 million with an effective tax rate of 16.2% for the second quarter of 2024. The effective tax rate for the third quarter of 2024 included approximately $1.2 million of tax expense recorded related to the BOLI restructuring. Excluding this impact, the effective tax rate would have been approximately 24% for the third quarter of 2024. The effective tax rate for the second quarter of 2024 was lower compared to the first quarter due to the recently enacted New Jersey Corporate Transit Fee, which resulted in a change in tax rate and a revaluation of the Bank’s deferred tax assets. A tax benefit of $1.1 million was booked as a discrete item in the second quarter for this change in tax rate.  With the expected negative ongoing impact of the New Jersey Corporate Transit Fee, we anticipate our future effective tax rate will range between 24% and 25%.

    Balance Sheet

    Total assets increased $148.3 million, or 4.1%, from December 31, 2023 to September 30, 2024. Total loans increased $66.0 million, or 2.2%, from December 31, 2023 to September 30, 2024. Growth totaling $116.3 million across the owner-occupied commercial real estate and commercial and industrial loan portfolios was partially offset by a decline of commercial investor real estate loans totaling $47.8 million, including multi-family and construction and development, during the first nine months of 2024. The Bank continues to prioritize relationship-based commercial and industrial lending while actively managing our exposure in investor real estate lending.

    Total assets grew $141.9 million, or 15.6% annualized, during the quarter ended September 30, 2024. Growth included an increase of $71.5 million in cash and cash equivalents related to the opportunistic addition of FHLB advances when interest rates declined during the quarter. Total loans increased by $89.5 million, or 11.9%, annualized, during the quarter ended September 30, 2024. Growth across the owner-occupied commercial real estate and commercial and industrial loan portfolios totaled $56.9 million, while commercial investor real estate loans, including multi-family and construction and development, grew $27.5 million, and consumer and residential real estate loans grew $5.2 million.

    Total deposits increased by $82.4 million, or 11.1% annualized, during the quarter ended September 30, 2024. Growth occurred across all categories, with non-interest bearing demand, interest bearing demand, money market and savings, and time deposits increasing $19.3 million, $23.3 million, $36.3 million, and $3.6 million, respectively, from the second quarter of 2024. Our team continued to focus on attracting new deposit relationships while maintaining existing core balances.

    Nearly all of the Bank’s deposit growth for the first nine months of 2024 occurred during the quarter ended September 30, 2024. We also experienced a slight shift in the mix of customer balances over the nine-month period. The Bank grew non-interest bearing demand deposits by $17.3 million in a challenging interest rate environment, while total interest-bearing deposits experienced a shift toward higher-costing deposits. During the first nine months of 2024, increases in money market and savings deposits and time deposits totaled $64.2 million and $32.3 million, respectively, partially offset by a decline in interest bearing demand deposits totaling $31.3 million.

    During the nine months ended September 30, 2024, stockholders’ equity increased by $31.2 million, primarily due to net income, partially offset by dividends.

    As of September 30, 2024, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized, with a Tier 1 Leverage ratio of 9.53%, a Tier 1 Risk-Based capital ratio of 9.65%, a Common Equity Tier 1 Capital ratio of 9.65%, and a Total Risk-Based capital ratio of 11.55%. The tangible stockholders’ equity to tangible assets ratio[IV] increased to 9.41% as of September 30, 2024 compared to 8.89% at December 31, 2023.

    Asset Quality

    First Bank’s asset quality metrics for the third quarter of 2024 remained favorable. Total nonperforming loans declined from $25.0 million at December 31, 2023 to $12.0 million at September 30, 2024, while total nonperforming assets declined from $25.0 million to $17.7 million during the same period. 

    The Bank recorded net charge-offs of $386,000 during the third quarter of 2024, compared to net charge-offs of $175,000 during the second quarter of 2024 and net charge-offs of $1.1 million in the third quarter of 2023. The allowance for credit losses on loans as a percentage of total loans measured 1.21% at September 30, 2024, compared to 1.21% at June 30, 2024 and 1.40% at December 31, 2023.  The decline from December 31, 2023 to September 30, 2024 reflected the $5.5 million charge-off and elimination of the Bank’s reserves on a purchase credit deteriorated loan transferred to OREO during the first quarter of 2024.

    Liquidity and Borrowings

    The Bank increased its liquidity position in the third quarter of 2024. Total cash and cash equivalents increased by $71.5 million to $312.3 million at September 30, 2024. Borrowings increased by $49.9 million compared to June 30, 2024, as the Bank increased its FHLB borrowings.

    Management believes the Bank’s current liquidity position, coupled with our various contingent funding sources, provides us with a strong liquidity base and a diverse source of funding options.    

    Cash Dividend Declared

    On October 15, 2024, the Bank’s Board of Directors declared a quarterly cash dividend of $0.06 per share to common stockholders of record at the close of business on November 8, 2024, payable on November 22, 2024.

    Share Repurchase Program

    The Board of Directors has authorized and the Bank has received regulatory approvals for a new share repurchase program. The program provides for the repurchase of up to 1.0 million shares of First Bank common stock for an aggregate repurchase amount of up to $16.0 million. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time on the open market or in privately negotiated transactions. The stock repurchase program does not require First Bank to repurchase any specific number of shares, and First Bank may terminate the repurchase program at any time. The share repurchase program will expire on September 30, 2025.

    Conference Call and Earnings Release Supplement

    Additional details on the quarterly results and the Bank are included in the attached earnings release supplement. http://ml.globenewswire.com/Resource/Download/8c344bfa-6975-4f79-872b-2307433b1520

    First Bank will host its earnings call on Thursday, October 24, 2024 at 9:00 AM Eastern Time. The direct dial toll free number for the live call is 1-800-715-9871 and the access code is 1578641. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 8550862) from one hour after the end of the conference call until January 22, 2025. Replay information will also be available on First Bank’s website at www.firstbanknj.com under the “About Us” tab. Click on “Investor Relations” to access the replay of the conference call.

    About First Bank

    First Bank is a New Jersey state-chartered bank with 26 full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington (2), Hamilton, Lawrence, Monroe, Morristown, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Coventry, Devon, Doylestown, Glenn Mills, Lionville, Malvern, Paoli, Trevose, Warminster and West Chester, Pennsylvania; and Palm Beach, Florida. With $3.76 billion in assets as of September 30, 2024, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank’s common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”

    Forward Looking Statements

    This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: changes in market interest rates on funding costs, yield on interest earning assets, credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank’s investment securities portfolio; whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, integrate acquired entities and realize anticipated efficiencies, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; the effects of the recent turmoil in the banking industry (including the failures of two financial institutions in early 2023); the impact of public health emergencies, such as COVID-19, on First Bank, its operations and its customers and employees; an increase in unemployment levels and slowdowns in economic growth; First Bank’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank’s operations, including changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank’s ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.

    _____________

    i Return on average tangible equity is a non-U.S. GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets).  For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

    ii Tangible book value per share is a non-U.S. GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus goodwill and other intangible assets).  For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

    iii The efficiency ratio is a non-U.S. GAAP financial measure and is calculated by dividing non-interest expense less merger-related expenses by adjusted total revenue (net interest income plus non-interest income).  For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

    iv Tangible stockholders’ equity to tangible assets ratio is a non-U.S. GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus goodwill and other intangible assets).  For a reconciliation of this non-U.S. GAAP financial measure, along with the other non-U.S. GAAP financial measures in this press release, to their comparable U.S. GAAP measures, see the financial reconciliations at the end of this press release.

    FIRST BANK
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (in thousands, except for share data, unaudited)
     
      September 30,
    2024
      December 31,
    2023
    Assets          
    Cash and due from banks $ 35,456     $ 25,652  
    Restricted cash   9,200       13,770  
    Interest bearing deposits with banks   267,643       188,529  
    Cash and cash equivalents   312,299       227,951  
    Interest bearing time deposits with banks   743       996  
    Investment securities available for sale, at fair value   74,549       94,142  
    Investment securities held to maturity, net of allowance for credit losses of $206 at September 30, 2024 and $200 at December 31, 2023 (fair value of $39,049 and $38,486 at September 30, 2024 and December 31, 2023, respectively)   43,659       44,059  
    Equity securities, at fair value   1,860       1,888  
    Restricted investment in bank stocks   13,845       10,469  
    Other investments   11,141       9,841  
    Loans, net of deferred fees and costs   3,087,488       3,021,501  
    Less: Allowance for credit losses   (37,434 )     (42,397 )
    Net loans   3,050,054       2,979,104  
    Premises and equipment, net   20,331       21,627  
    Other real estate owned, net   5,637        
    Accrued interest receivable   13,502       14,763  
    Bank-owned life insurance   84,727       86,435  
    Goodwill   44,166       44,166  
    Other intangible assets, net   9,318       10,812  
    Deferred income taxes, net   31,448       30,875  
    Other assets   40,374       32,199  
    Total assets $ 3,757,653     $ 3,609,327  
               
    Liabilities and Stockholders’ Equity          
    Liabilities:          
    Non-interest bearing deposits $ 519,079     $ 501,763  
    Interest bearing deposits   2,530,991       2,465,806  
    Total deposits   3,050,070       2,967,569  
    Borrowings   236,999       179,140  
    Subordinated debentures   29,926       55,261  
    Accrued interest payable   5,078       2,813  
    Other liabilities   33,510       33,644  
    Total liabilities   3,355,583       3,238,427  
    Stockholders’ Equity:          
    Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding          
    Common stock, par value $5 per share; 40,000,000 shares authorized; 27,367,984 shares issued and 25,186,920 shares outstanding at September 30, 2024 and 27,149,186 shares issued and 24,968,122 shares outstanding at December 31, 2023   135,415       134,552  
    Additional paid-in capital   124,014       122,881  
    Retained earnings   167,792       140,563  
    Accumulated other comprehensive loss   (3,773 )     (5,718 )
    Treasury stock, 2,181,064 shares at September 30, 2024 and December 31, 2023   (21,378 )     (21,378 )
    Total stockholders’ equity   402,070       370,900  
    Total liabilities and stockholders’ equity $ 3,757,653     $ 3,609,327  
                   
    FIRST BANK
    CONSOLIDATED STATEMENTS OF INCOME (LOSS)
    (in thousands, except for share data, unaudited)
     
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024   2023   2024   2023
    Interest and Dividend Income                      
    Investment securities—taxable $ 1,201     $ 1,151     $ 3,661     $ 3,128  
    Investment securities—tax-exempt   35       86       109       158  
    Interest bearing deposits with banks, Federal funds sold and other   3,972       2,593       10,479       6,029  
    Loans, including fees   50,957       46,088       151,039       111,536  
    Total interest and dividend income   56,165       49,918       165,288       120,851  
                           
    Interest Expense                      
    Deposits   23,081       18,470       66,253       40,574  
    Borrowings   2,550       1,914       6,859       4,939  
    Subordinated debentures   440       940       1,224       1,821  
    Total interest expense   26,071       21,324       74,336       47,334  
    Net interest income   30,094       28,594       90,952       73,517  
    Credit loss expense   1,579       6,650       944       8,237  
    Net interest income after credit loss expense   28,515       21,944       90,008       65,280  
                           
    Non-Interest Income                      
    Service fees on deposit accounts   362       280       1,056       741  
    Loan fees   218       152       437       259  
    Income from bank-owned life insurance   1,819       544       3,213       1,291  
    Losses on sale of investment securities, net   (555 )     (527 )     (555 )     (734 )
    Gains (losses) on sale of loans, net   135       (704 )     (536 )     (393 )
    Gains on recovery of acquired loans   35       24       209       95  
    Other non-interest income   465       424       1,308       1,026  
    Total non-interest income   2,479       193       5,132       2,285  
                           
    Non-Interest Expense                      
    Salaries and employee benefits   10,175       9,326       30,181       25,320  
    Occupancy and equipment   2,080       1,915       6,188       5,107  
    Legal fees   245       270       801       671  
    Other professional fees   943       631       2,628       1,880  
    Regulatory fees   728       595       1,970       1,345  
    Directors’ fees   272       224       784       631  
    Data processing   800       907       2,355       2,206  
    Marketing and advertising   310       220       983       693  
    Travel and entertainment   233       140       762       519  
    Insurance   245       272       740       624  
    Other real estate owned expense, net   662             879       38  
    Merger-related expenses         7,028             7,710  
    Other expense   1,951       1,958       6,136       4,020  
    Total non-interest expense   18,644       23,486       54,407       50,764  
    Income Before Income Taxes   12,350       (1,349 )     40,733       16,801  
    Income tax expense   4,188       (78 )     8,986       4,284  
    Net Income (loss) $ 8,162     $ (1,271 )   $ 31,747     $ 12,517  
                           
    Basic earnings (loss) per common share $ 0.32     $ (0.05 )   $ 1.26     $ 0.60  
    Diluted earnings (loss) per common share $ 0.32     $ (0.05 )   $ 1.26     $ 0.59  
                           
    Basic weighted average common shares outstanding   25,172,927       23,902,478       25,114,685       20,928,847  
    Diluted weighted average common shares outstanding   25,342,462       23,902,478       25,265,250       21,057,655  
                                   
    FIRST BANK
    AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
    (dollars in thousands, unaudited)
     
      Three Months Ended September 30,
      2024   2023
      Average         Average   Average         Average
      Balance   Interest   Rate(5)   Balance   Interest   Rate(5)
    Interest earning assets                                
    Investment securities (1) (2) $ 137,216     $ 1,244     3.61 %   $ 169,244     $ 1,255       2.94 %
    Loans (3)   3,010,116       50,957     6.73 %     3,003,703       46,088       6.09 %
    Interest bearing deposits with banks,                                
    Federal funds sold and other   265,474       3,593     5.38 %     182,128       2,395       5.22 %
    Restricted investment in bank stocks   12,768       257     8.01 %     10,284       196       7.56 %
    Other investments   12,776       122     3.80 %     9,162       2       0.09 %
    Total interest earning assets (2)   3,438,350       56,173     6.50 %     3,374,521       49,936       5.87 %
    Allowance for credit losses   (36,612 )               (41,216 )            
    Non-interest earning assets   271,105                 232,045              
    Total assets $ 3,672,843               $ 3,565,350              
                                     
    Interest bearing liabilities                                
    Interest bearing demand deposits $ 587,045     $ 3,974     2.69 %   $ 674,417     $ 4,038       2.38 %
    Money market deposits   1,064,045       10,573     3.95 %     952,042       8,386       3.49 %
    Savings deposits   149,057       563     1.50 %     174,412       490       1.11 %
    Time deposits   690,723       7,902     4.55 %     655,288       5,556       3.36 %
    Total interest bearing deposits   2,490,870       23,012     3.68 %     2,456,159       18,470       2.98 %
    Borrowings   206,588       2,550     4.91 %     163,746       1,914       4.64 %
    Subordinated debentures   29,908       440     5.88 %     51,101       940       7.36 %
    Total interest bearing liabilities   2,727,366       26,002     3.79 %     2,671,006       21,324       3.17 %
    Non-interest bearing deposits   506,084                 507,866              
    Other liabilities   40,858                 33,106              
    Stockholders’ equity   398,535                 353,372              
    Total liabilities and stockholders’ equity $ 3,672,843               $ 3,565,350              
    Net interest income/interest rate spread (2)         30,171     2.71 %           28,612       2.70 %
    Net interest margin (2) (4)             3.49 %                 3.36 %
    Tax equivalent adjustment (2)         (8 )               (18 )      
    Net interest income       $ 30,163               $ 28,594        
                                         

    (1) Average balance of investment securities available for sale is based on amortized cost. 
    (2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%. 
    (3) Average balances of loans include loans on nonaccrual status. 
    (4) Net interest income divided by average total interest earning assets. 
    (5) Annualized.

    FIRST BANK
    AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES
    (dollars in thousands, unaudited)
     
      Nine Months Ended September 30,
      2024   2023
      Average         Average   Average         Average
      Balance   Interest   Rate(5)   Balance   Interest   Rate(5)
    Interest earning assets                              
    Investment securities (1) (2) $ 143,528     $ 3,793     3.53 %   $ 155,128     $ 3,319     2.86 %
    Loans (3)   2,995,895       151,039     6.73 %     2,590,409       111,536     5.76 %
    Interest bearing deposits with banks,                              
    Federal funds sold and other   231,171       9,404     5.43 %     143,922       5,403     5.02 %
    Restricted investment in bank stocks   11,461       699     8.15 %     9,327       454     6.51 %
    Other investments   12,262       376     4.10 %     8,902       172     2.58 %
    Total interest earning assets (2)   3,394,317       165,311     6.51 %     2,907,688       120,884     5.56 %
    Allowance for credit losses   (37,000 )               (33,664 )          
    Non-interest earning assets   265,368                 174,246            
    Total assets $ 3,622,685               $ 3,048,270            
                                   
    Interest bearing liabilities                              
    Interest bearing demand deposits $ 599,025     $ 11,453     2.55 %   $ 445,318     $ 6,492     1.95 %
    Money market deposits   1,046,911       30,921     3.95 %     840,688       20,177     3.21 %
    Savings deposits   156,416       1,756     1.50 %     155,370       1,202     1.03 %
    Time deposits   680,194       22,054     4.33 %     586,827       12,703     2.89 %
    Total interest bearing deposits   2,482,546       66,184     3.56 %     2,028,203       40,574     2.67 %
    Borrowings   181,844       6,859     5.04 %     149,042       4,939     4.43 %
    Subordinated debentures   34,071       1,224     4.79 %     36,949       1,821     6.57 %
    Total interest bearing liabilities   2,698,461       74,267     3.68 %     2,214,194       47,334     2.86 %
    Non-interest bearing deposits   494,971                 490,211            
    Other liabilities   41,971                 29,939            
    Stockholders’ equity   387,282                 313,926            
    Total liabilities and stockholders’ equity $ 3,622,685               $ 3,048,270            
    Net interest income/interest rate spread (2)         91,044     2.83 %           73,550     2.70 %
    Net interest margin (2) (4)             3.58 %               3.38 %
    Tax equivalent adjustment (2)         (23 )               (33 )    
    Net interest income       $ 91,021               $ 73,517      
                                       

    (1) Average balance of investment securities available for sale is based on amortized cost.
    (2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
    (3) Average balances of loans include loans on nonaccrual status.
    (4) Net interest income divided by average total interest earning assets.
    (5) Annualized.

    FIRST BANK
    QUARTERLY FINANCIAL HIGHLIGHTS
    (in thousands, except for share and employee data, unaudited)
     
      As of or For the Quarter Ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    EARNINGS                            
    Net interest income $ 30,094     $ 30,540     $ 30,318     $ 30,999     $ 28,594  
    Credit loss (benefit) expense   1,579       63       (698 )     (294 )     6,650  
    Non-interest income   2,479       689       1,964       (3,000 )     193  
    Non-interest expense   18,644       17,953       17,810       17,936       23,486  
    Income tax expense   4,188       2,140       2,658       1,977       (78 )
    Net income   8,162       11,073       12,512       8,380       (1,271 )
                                 
    PERFORMANCE RATIOS                            
    Return on average assets (1)   0.88 %     1.23 %     1.41 %     0.93 %     (0.14 %)
    Adjusted return on average assets (1) (2)   0.93 %     1.31 %     1.39 %     1.38 %     1.07 %
    Return on average equity (1)   8.15 %     11.52 %     13.36 %     9.06 %     (1.43 %)
    Adjusted return on average equity (1) (2)   8.56 %     12.26 %     13.17 %     13.38 %     10.75 %
    Return on average tangible equity (1) (2)   9.42 %     13.40 %     15.64 %     10.67 %     (1.66 %)
    Adjusted return on average tangible equity (1) (2)   9.89 %     14.26 %     15.41 %     15.75 %     12.50 %
    Net interest margin (1) (3)   3.49 %     3.62 %     3.64 %     3.68 %     3.36 %
    Yield on loans (1)   6.73 %     6.81 %     6.66 %     6.49 %     6.09 %
    Total cost of deposits (1)   3.05 %     3.01 %     2.83 %     2.63 %     2.47 %
    Efficiency ratio (2)   58.49 %     55.88 %     55.56 %     53.79 %     54.83 %
                                 
    SHARE DATA                            
    Common shares outstanding   25,186,920       25,144,983       25,096,449       24,968,122       24,926,919  
    Basic earnings per share $ 0.32     $ 0.44     $ 0.50     $ 0.34     $ (0.05 )
    Diluted earnings per share   0.32       0.44       0.50       0.33       (0.05 )
    Adjusted diluted earnings per share (2)   0.34       0.47       0.49       0.49       0.40  
    Book value per share   15.96       15.61       15.23       14.85       14.48  
    Tangible book value per share (2)   13.84       13.46       13.06       12.65       12.26  
                                 
    MARKET DATA                            
    Market value per share $ 15.20     $ 12.74     $ 13.74     $ 14.70     $ 10.78  
    Market value / Tangible book value   109.83 %     94.65 %     105.20 %     116.18 %     87.96 %
    Market capitalization $ 382,841     $ 320,347     $ 344,825     $ 367,031     $ 268,712  
                                 
    CAPITAL & LIQUIDITY                            
    Stockholders’ equity / assets   10.70 %     10.86 %     10.64 %     10.28 %     10.15 %
    Tangible stockholders’ equity / tangible assets (2)   9.41 %     9.50 %     9.27 %     8.89 %     8.72 %
    Loans / deposits   101.23 %     101.02 %     100.75 %     101.82 %     101.80 %
                                 
    ASSET QUALITY                            
    Net charge-offs $ 386     $ 175     $ 5,293     $ 209     $ 1,122  
    Net charge-offs (recoveries), excluding PCD loan charge-off (4)   386       175       (201 )     209       1,122  
    Nonperforming loans   12,014       14,227       17,054       24,989       24,158  
    Nonperforming assets   17,651       20,226       23,053       24,989       24,158  
    Net charge offs / average loans (1)   0.05 %     0.02 %     0.72 %     0.03 %     0.15 %
    Net charge offs (recoveries), excluding PCD loan charge-off / average loans (1) (4)   0.05 %     0.02 %     (0.03 %)     0.03 %     0.15 %
    Nonperforming loans / total loans   0.39 %     0.47 %     0.57 %     0.83 %     0.80 %
    Nonperforming assets / total assets   0.47 %     0.56 %     0.64 %     0.69 %     0.68 %
    Allowance for credit losses on loans / total loans   1.21 %     1.21 %     1.22 %     1.40 %     1.42 %
    Allowance for credit losses on loans / nonperforming loans   311.59 %     254.81 %     213.42 %     169.66 %     177.50 %
                                 
    OTHER DATA                            
    Total assets $ 3,757,653     $ 3,615,731     $ 3,591,398     $ 3,609,327     $ 3,558,426  
    Total loans   3,087,488       2,998,029       2,992,423       3,021,501       3,020,778  
    Total deposits   3,050,070       2,967,634       2,970,262       2,967,569       2,967,455  
    Total stockholders’ equity   402,070       392,489       382,254       370,900       361,037  
    Number of full-time equivalent employees   313       294       288       286       286  
                                           

    (1) Annualized.
    (2) Non-U.S. GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition.  See accompanying table, “Non-U.S. GAAP Financial Measures,” for calculation and reconciliation.
    (3) Tax equivalent using a federal income tax rate of 21%.
    (4) Excludes $5.5 million in a PCD loan charge-off in first quarter of 2024, which was reserved for through purchase accounting marks at the time of the Malvern acquisition.

    FIRST BANK
    QUARTERLY FINANCIAL HIGHLIGHTS
    (dollars in thousands, unaudited)
     
      As of the Quarter Ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    LOAN COMPOSITION                            
    Commercial and industrial $ 546,541     $ 530,996     $ 508,911     $ 506,849     $ 478,120  
    Commercial real estate:                            
    Owner-occupied   688,988       647,625       625,643       612,352       607,888  
    Investor   1,170,508       1,143,954       1,172,311       1,221,702       1,269,134  
    Construction and development   193,460       190,108       184,816       186,829       168,192  
    Multi-family   267,861       270,238       279,668       271,058       275,825  
    Total commercial real estate   2,320,817       2,251,925       2,262,438       2,291,941       2,321,039  
    Residential real estate:                            
    Residential mortgage and first lien home equity loans   143,953       144,978       154,704       156,024       158,487  
    Home equity–second lien loans and revolving lines of credit   49,891       46,882       45,869       44,698       46,239  
    Total residential real estate   193,844       191,860       200,573       200,722       204,726  
    Consumer and other   29,518       26,321       23,702       25,343       20,208  
    Total loans prior to deferred loan fees and costs   3,090,720       3,001,102       2,995,624       3,024,855       3,024,093  
    Net deferred loan fees and costs   (3,232 )     (3,073 )     (3,201 )     (3,354 )     (3,315 )
    Total loans $ 3,087,488     $ 2,998,029     $ 2,992,423     $ 3,021,501     $ 3,020,778  
                                 
    LOAN MIX                            
    Commercial and industrial   17.7 %     17.7 %     17.0 %     16.8 %     15.8 %
    Commercial real estate:                            
    Owner-occupied   22.3 %     21.6 %     20.9 %     20.3 %     20.1 %
    Investor   37.9 %     38.2 %     39.2 %     40.4 %     42.0 %
    Construction and development   6.3 %     6.3 %     6.2 %     6.2 %     5.6 %
    Multi-family   8.7 %     9.0 %     9.3 %     9.0 %     9.1 %
    Total commercial real estate   75.2 %     75.1 %     75.6 %     75.9 %     76.8 %
    Residential real estate:                            
    Residential mortgage and first lien home equity loans   4.7 %     4.8 %     5.2 %     5.1 %     5.3 %
    Home equity–second lien loans and revolving lines of credit   1.6 %     1.6 %     1.5 %     1.5 %     1.5 %
    Total residential real estate   6.3 %     6.4 %     6.7 %     6.6 %     6.8 %
    Consumer and other   0.9 %     0.9 %     0.8 %     0.8 %     0.7 %
    Net deferred loan fees and costs   (0.1 %)     (0.1 %)     (0.1 %)     (0.1 %)     (0.1 %)
    Total loans   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
                                           
    FIRST BANK
    QUARTERLY FINANCIAL HIGHLIGHTS
    (dollars in thousands, unaudited)
     
      As of the Quarter Ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    DEPOSIT COMPOSITION                            
    Non-interest bearing demand deposits $ 519,079     $ 499,765     $ 470,749     $ 501,763     $ 493,703  
    Interest bearing demand deposits   597,802       574,515       580,864       629,110       623,338  
    Money market and savings deposits   1,235,637       1,199,382       1,219,634       1,171,440       1,228,832  
    Time deposits   697,552       693,972       699,015       665,256       621,582  
    Total Deposits $ 3,050,070     $ 2,967,634     $ 2,970,262     $ 2,967,569     $ 2,967,455  
                                 
    DEPOSIT MIX                            
    Non-interest bearing demand deposits   17.0 %     16.8 %     15.8 %     16.9 %     16.6 %
    Interest bearing demand deposits   19.6 %     19.4 %     19.6 %     21.2 %     21.0 %
    Money market and savings deposits   40.5 %     40.4 %     41.1 %     39.5 %     41.4 %
    Time deposits   22.9 %     23.4 %     23.5 %     22.4 %     21.0 %
    Total Deposits   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
                                           
    FIRST BANK
    NON-U.S. GAAP FINANCIAL MEASURES
    (in thousands, except for share data, unaudited)
     
      As of or For the Quarter Ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
    Return on Average Tangible Equity                            
    Net income (numerator) $ 8,162     $ 11,073     $ 12,512     $ 8,380     $ (1,271 )
                                 
    Average stockholders’ equity $ 398,535     $ 386,644     $ 376,542     $ 366,950     $ 353,372  
    Less: Average Goodwill and other intangible assets, net   53,823       54,347       54,790       55,324       49,491  
    Average Tangible stockholders’ equity (denominator) $ 344,712     $ 332,297     $ 321,752     $ 311,626     $ 303,881  
                                 
    Return on Average Tangible equity (1)   9.42 %     13.40 %     15.64 %     10.67 %     -1.66 %
                                 
    Tangible Book Value Per Share                            
    Stockholders’ equity $ 402,070     $ 392,489     $ 382,254     $ 370,900     $ 361,037  
    Less: Goodwill and other intangible assets, net   53,484       54,026       54,483       54,978       55,554  
    Tangible stockholders’ equity (numerator) $ 348,586     $ 338,463     $ 327,771     $ 315,922     $ 305,483  
                                 
    Common shares outstanding (denominator)   25,186,920       25,144,983       25,096,449       24,968,122       24,926,919  
                                 
    Tangible book value per share $ 13.84     $ 13.46     $ 13.06     $ 12.65     $ 12.26  
                                 
    Tangible Equity / Tangible Assets                            
    Stockholders’ equity $ 402,070     $ 392,489     $ 382,254     $ 370,900     $ 361,037  
    Less: Goodwill and other intangible assets, net   53,484       54,026       54,483       54,978       55,554  
    Tangible stockholders’ equity (numerator) $ 348,586     $ 338,463     $ 327,771     $ 315,922     $ 305,483  
                                 
    Total assets $ 3,757,653     $ 3,615,731     $ 3,591,398     $ 3,609,327     $ 3,558,426  
    Less: Goodwill and other intangible assets, net   53,484       54,026       54,483       54,978       55,554  
    Tangible total assets (denominator) $ 3,704,169     $ 3,561,705     $ 3,536,915     $ 3,554,349     $ 3,502,872  
                                 
    Tangible stockholders’ equity / tangible assets   9.41 %     9.50 %     9.27 %     8.89 %     8.72 %
                                 
    Efficiency Ratio                            
    Non-interest expense $ 18,644     $ 17,953     $ 17,810     $ 17,936     $ 23,486  
    Less: Merger-related expenses                     338       7,028  
    Adjusted non-interest expense (numerator) $ 18,644     $ 17,953     $ 17,810     $ 17,598     $ 16,458  
                                 
    Net interest income $ 30,094     $ 30,540     $ 30,318     $ 30,999     $ 28,594  
    Non-interest income   2,479       689       1,964       (3,000 )     193  
    Total revenue   32,573       31,229       32,282       27,999       28,787  
    Add: Losses on sale of investment securities, net   555                   916       527  
    (Subtract) Add: (Gains) losses on sale of loans, net   (135 )     900       (229 )     3,799       704  
    Less: Bank Owned Life Insurance Enhancement   (1,116 )                        
    Adjusted total revenue (denominator) $ 31,877     $ 32,129     $ 32,053     $ 32,714     $ 30,018  
                                 
    Efficiency ratio   58.49 %     55.88 %     55.56 %     53.79 %     54.83 %
                                           

    (1) Annualized.

    FIRST BANK
    NON-U.S. GAAP FINANCIAL MEASURES
    (dollars in thousands, except for share data, unaudited)
     
      For the Quarter Ended
      9/30/2024   6/30/2024   3/31/2024   12/31/2023   9/30/2023
                                 
    Adjusted diluted earnings per share,                            
    Adjusted return on average assets, and                            
    Adjusted return on average equity                            
                                 
    Net income $ 8,162     $ 11,073     $ 12,512     $ 8,380     $ (1,271 )
    Add: Merger-related expenses(1)                     267       5,552  
    Add: Credit loss expense on acquired loan portfolio(1)                           4,323  
    Add (subtract): Losses (gains) on sale of loans, net(1)   (107 )     711       (181 )     3,001       556  
    Add: Losses on sale of investment securities, net(1)   438                   724       416  
    Add: Net Impact of Bank Owned Life Insurance Restructuring(2)   79                          
    Adjusted net income $ 8,572     $ 11,784     $ 12,331     $ 12,372     $ 9,576  
                                 
    Diluted weighted average common shares outstanding   25,342,462       25,258,785       25,199,381       25,089,495       24,029,910  
    Average assets $ 3,672,843     $ 3,618,912     $ 3,575,748     $ 3,561,261     $ 3,565,350  
    Average equity $ 398,535     $ 386,644     $ 376,542     $ 366,950     $ 353,372  
    Average Tangible Equity $ 344,712     $ 332,297     $ 321,752     $ 311,626     $ 303,881  
                                 
    Adjusted diluted earnings per share $ 0.34     $ 0.47     $ 0.49     $ 0.49     $ 0.40  
    Adjusted return on average assets(3)   0.93 %     1.31 %     1.39 %     1.38 %     1.07 %
    Adjusted return on average equity(3)   8.56 %     12.26 %     13.17 %     13.38 %     10.75 %
    Adjusted return on average tangible equity(3)   9.89 %     14.26 %     15.41 %     15.75 %     12.50 %
                                           

    (1) Items are tax-effected using a federal income tax rate of 21%.
    (2) Includes the net impact of the new Bank Owned Life Insurance enhancement and the increased tax expense on the terminated policies.
    (3) Annualized.

    The MIL Network

  • MIL-OSI: STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates the Merger of Atlantic Union Bankshares Corp. – AUB

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Atlantic Union Bankshares Corp. (NYSE: AUB), relating to a proposed merger with Sandy Spring Bancorp, Inc. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 shares of AUB, and cash in lieu of fractional shares.

    Click here for more information https://monteverdelaw.com/case/atlantic-union-bankshares-corp/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com).  Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network

  • MIL-OSI: Lake Shore Bancorp, Inc. Announces Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    DUNKIRK, N.Y., Oct. 23, 2024 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the holding company for Lake Shore Savings Bank (the “Bank”), reported unaudited net income of $1.3 million, or $0.24 per diluted share, for the third quarter of 2024 compared to net income of $1.1 million, or $0.19 per diluted share, for the second quarter of 2024, and $1.6 million, or $0.27 per diluted share, for the third quarter of 2023. The increase in net income during the third quarter of 2024 was primarily driven by an increase in net interest income and a reduction in non-interest expenses when compared to the previous quarter. For the first nine months of 2024, the Company reported unaudited net income of $3.5 million, or $0.62 per diluted share, as compared to $4.1 million, or $0.69 per diluted share, for the first nine months of 2023. During the first nine months of 2024, the Company repaid Federal Home Loan Bank of New York (“FHLBNY”) borrowings of $25.0 million and did not renew $16.0 million of brokered certificates of deposit (“CDs”) while growing organic deposits by 2.2%.

    “I am pleased to report a solid quarter of financial results, marked by quarterly earnings growth and an uptick in the net interest margin for the first time in well over a year,” stated Kim C. Liddell, President, CEO, and Director. “These earnings reflect the Company’s ongoing focus on managing its financial performance amid challenging market conditions.”

    Third Quarter 2024 and Year-to-Date Financial Highlights:

    • Net income increased to $1.3 million during the third quarter of 2024, an increase of $216,000, or 19.4%, when compared to the second quarter of 2024. Net income was positively impacted by an increase in net interest income of $177,000, or 3.4%, and a decrease in non-interest expenses of $84,000, or 1.7%;
    • Net interest margin increased to 3.28% during the third quarter of 2024, an increase of 14 basis points when compared to a net interest margin of 3.14% during the second quarter of 2024;
    • Efficiency ratio improved to 77.96% for the third quarter of 2024 when compared to 82.39% for the second quarter of 2024;
    • Did not renew $16.0 million of brokered CDs and $25.0 million of FHLBNY borrowings through organic deposit growth of 2.2% during the first nine months of 2024;
    • At September 30, 2024 and December 31, 2023, the Company’s percentage of uninsured deposits to total deposits was 13.4% and 12.8%, respectively; and
    • The Bank’s capital position remains “well capitalized” with a Tier 1 Leverage ratio of 13.37% and a Total Risk-Based capital ratio of 18.85% at September 30, 2024.

    Net Interest Income

    Net interest income for the third quarter of 2024 increased $177,000, or 3.4%, to $5.4 million as compared to $5.2 million for the second quarter of 2024 and decreased $912,000, or 14.5%, as compared to $6.3 million for the third quarter of 2023. Net interest margin and interest rate spread were 3.28% and 2.67%, respectively, for the third quarter of 2024 as compared to 3.14% and 2.56%, respectively, for the second quarter of 2024 and 3.74% and 3.32%, respectively, for the third quarter of 2023.

    Net interest income for the first nine months of 2024 decreased $3.1 million, or 16.4%, to $15.7 million as compared to $18.8 million for the first nine months of 2023. Net interest margin and interest rate spread were 3.17% and 2.59%, respectively, for the first nine months of 2024 as compared to 3.72% and 3.36%, respectively, for the first nine months of 2023.

    Interest income for the third quarter of 2024 was $8.9 million, an increase of $97,000, or 1.1%, compared to $8.8 million for the second quarter of 2024, and an increase of $130,000, or 1.5%, compared to $8.7 million for the third quarter of 2023. The increase from the prior quarter was primarily due to an 11 basis points increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $6.0 million, or 0.9%. The increase from the prior year quarter was primarily due to a 21 basis points increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $16.7 million, or 2.5%.

    Interest income for the first nine months of 2024 was $26.2 million, an increase of $1.1 million, or 4.3%, compared to $25.1 million for the first nine months of 2023. The increase was primarily due to a 32 basis point increase in the average yield on interest-earning assets, partially offset by a decrease in the average balance of interest-earning assets of $14.0 million, or 2.1%.

    Interest expense for the third quarter of 2024 was $3.5 million, a decrease of $80,000, or 2.3%, from the second quarter of 2024, and an increase of $1.0 million, or 43.0%, from $2.4 million for the third quarter of 2023. 

    The decrease in interest expense when compared to the previous quarter was primarily due to a decrease in the average balance of interest-bearing liabilities of $12.0 million, or 2.3%. During the third quarter of 2024, there was a $52,000 decrease in interest expense on total deposit accounts when compared to the second quarter of 2024, due to a decrease in the average balance of total deposit accounts of $7.2 million, or 1.4% and a one basis point decrease in the average interest rate paid on total deposits. Additionally, interest expense on borrowed funds and other interest-bearing liabilities decreased by $28,000, or 15.8% during the third quarter of 2024 when compared to the second quarter of 2024, due to a decrease in the average balance of borrowed funds and other interest-bearing liabilities of $4.8 million, or 19.1%, as we reduced our FHLB borrowings.

    The increase in interest expense when compared to the third quarter of 2023 was primarily due to an 86 basis points increase in the average interest rate paid on interest-bearing liabilities, partially offset by a decrease in the average balance of interest-bearing liabilities of $10.9 million, or 2.1%. During the third quarter of 2024, there was a $1.2 million increase in interest expense on total deposit accounts when compared to the third quarter of 2023 due to a 97 basis points increase in the average interest rate paid on total deposits along with an increase in average total deposit balances of $5.5 million, or 1.1%. The increase in the average interest rate paid on deposit accounts was primarily due to the increase in market interest rates and deposit competition. This increase was partially offset by a decrease in interest expense on borrowed funds and other interest-bearing liabilities of $173,000, or 53.7%, in the third quarter of 2024 when compared to the third quarter of 2023, primarily due to a $16.5 million decrease in the average balance of borrowed funds and other interest-bearing liabilities outstanding as we reduced our FHLBNY borrowings, and the average rate paid declined by 58 basis points.

    Interest expense for the first nine months of 2024 was $10.5 million, an increase of $4.2 million, or 65.4%, from $6.3 million for the first nine months of 2023. The increase in interest expense was primarily due to a 109 basis points increase in average interest rate paid on interest-bearing liabilities, partially offset by a decrease in the average balance of interest-bearing liabilities of $8.0 million, or 1.5%. During the first nine months of 2024, there was a $4.6 million increase in interest expense on total deposit accounts when compared to the first nine months of 2023 due to a 122 basis points increase in the average interest rate paid on total deposits along with an increase in average total deposit balances of $6.3 million, or 1.3%. The increase in the average interest rate paid on deposit accounts was primarily due to the increase in market interest rates and deposit competition. This increase was partially offset by a decrease in interest expense on borrowed funds and other interest-bearing liabilities of $452,000, or 44.8%, during the first nine months of 2024 when compared to the first nine months of 2023, primarily due to a $14.4 million decrease in the average balance of borrowed funds and other interest-bearing liabilities outstanding along with a 45 basis points decrease in the average interest rate paid on borrowed funds and other interest bearing liabilities as we reduced our FHLBNY borrowings.

    Non-Interest Income

    Non-interest income was $791,000 for the third quarter of 2024, an increase of $53,000, or 7.2%, as compared to $738,000 for the second quarter of 2024, and an increase of $186,000, or 30.7%, as compared to $605,000 for the third quarter of 2023. The increase from the prior quarter was primarily due to a $67,000 increase in earnings on bank-owned life insurance during the third quarter of 2024 as the result of the recognition of a death benefit. The increase from the prior year quarter was primarily due to a $173,000 increase in earnings on bank-owned life insurance in connection with the restructuring of bank-owned life insurance during the fourth quarter of 2023 as well as an increase in service charges and fees of $28,000, or 10.9%.  

    Non-interest income was $2.2 million for the first nine months of 2024, an increase of $524,000, or 30.6%, as compared to the first nine months of 2023. The increase was primarily due to a $394,000 increase in earnings on bank-owned life insurance in connection with the restructuring of bank-owned life insurance during the fourth quarter of 2023 and the recognition of a death benefit in the third quarter of 2024, a favorable variance of $58,000 related to interest rate swaps during the first nine months of 2024 as a result of unwinding the swaps during 2023, and a $52,000 increase related to the loss on the sale of securities available for sale that occurred during the first nine months of 2023 as part of a balance sheet restructuring.

    Non-Interest Expense

    Non-interest expense was $4.8 million for the third quarter of 2024, a decrease of $84,000, or 1.7%, as compared to $4.9 million for the second quarter of 2024, and a decrease of $383,000, or 7.4%, as compared to $5.2 million for the third quarter of 2023. 

    The decrease from the prior quarter was primarily related to a decrease in FDIC insurance expense of $154,000, or 54.2% and a decrease in professional services expense of $36,000, or 9.1%. These decreases were partially offset by an increase in salaries and employee benefit costs and other expenses.

    The decrease from the prior year quarter was primarily related to a decrease in FDIC insurance expense of $165,000, or 55.9%, and a decrease in advertising expense of $146,000, or 93.0%, as a result of a decrease in marketing spending. As a result of management’s efforts to rationalize staffing and optimize operating expenses, salaries and employee benefits decreased by $31,000, or 1.1%.

    Non-interest expense was $14.7 million for the first nine months of 2024, a decrease of $1.9 million, or 11.5%, as compared to $16.6 million for the first nine months of 2023. The decrease related primarily to a decline in professional services expense of $1.0 million, or 48.0%, as a result of a decrease in the use of external consultants. Additionally, advertising costs decreased by $435,000, or 84.6%, due to a decrease in marketing spending, and FDIC insurance costs decreased by $133,000, or 16.1%. As a result of management’s efforts to rationalize staffing and optimize operating expenses, salaries and employee benefits decreased by $208,000, or 2.5% and occupancy and equipment expenses decreased by $148,000, or 6.7%. These decreases were partially offset by an increase in data processing costs of $51,000, or 4.0%.

    Credit Quality

    The Company’s allowance for credit losses on loans was $5.5 million at September 30, 2024 as compared to $6.5 million at December 31, 2023. The Company’s allowance for credit losses on unfunded commitments was $574,000 at September 30, 2024 as compared to $485,000 at December 31, 2023.

    Non-performing assets as a percentage of total assets increased to 0.57% at September 30, 2024 as compared to 0.47% at December 31, 2023 as a result of a decrease in total assets of $27.5 million and an increase in non-performing assets of $628,000. The Company’s allowance for credit losses on loans as a percent of net loans was 1.01% at September 30, 2024 and 1.16% at December 31, 2023. The decline in the allowance for credit losses to net loans and the corresponding credit to the provision for credit losses recognized was primarily due to a decrease in the quantitative loss factors derived from historical loss rates calculated in the vintage model as well as a decrease in the qualitative loss factor derived from forecasting economic trends.

    Balance Sheet Summary

    Total assets at September 30, 2024 were $697.6 million, a $27.5 million decrease, or 3.8%, as compared to $725.1 million at December 31, 2023. Cash and cash equivalents decreased by $3.7 million, or 7.0%, from $53.7 million at December 31, 2023 to $50.0 million at September 30, 2024. The decrease was primarily due to the repayment of $25.0 million of FHLBNY borrowings and the nonrenewal of $16.0 million of brokered CDs, partially offset by organic deposit growth of $12.6 million, or 2.2%, and loan repayments, net of originations, of $16.8 million, or 3.0%. Securities available for sale were $58.8 million at September 30, 2024 as compared to $60.4 million at December 31, 2023.  Loans receivable, net at September 30, 2024 and December 31, 2023 were $539.0 million and $555.8 million, respectively.  

    Total deposits, excluding brokered CDs, at September 30, 2024 were $587.6 million, an increase of $12.6 million, or 2.2%, compared to $574.9 million at December 31, 2023. Total deposits at September 30, 2024 were $587.6 million, a decrease of $3.4 million, or 0.6%, due to the nonrenewal of $16.0 million in brokered CDs, compared to $590.9 million at December 31, 2023. Total borrowings decreased to $10.3 million at September 30, 2024, a decrease of $25.0 million, or 70.9% as compared to $35.3 million as of December 31, 2023 as we reduced our FHLBNY borrowings. 

    Stockholders’ equity at September 30, 2024 was $89.9 million, a $3.6 million increase, or 4.2%, as compared to $86.3 million at December 31, 2023. The increase in stockholders’ equity was primarily attributed to $3.5 million in net income earned during the first nine months of 2024. 

    About Lake Shore

    Lake Shore Bancorp, Inc. (NASDAQ Global Market: LSBK) is the mid-tier holding company of Lake Shore Savings Bank, a federally chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. The Company’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about the Company is available at www.lakeshoresavings.com.

    Safe-Harbor

    This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, compliance with the Bank’s Consent Order and an Individual Minimum Capital Requirement both issued by the Office of the Comptroller of the Currency, compliance with the Written Agreement with the Federal Reserve Bank of Philadelphia, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, unanticipated changes in our liquidity position, climate change, geopolitical conflicts, public health issues, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, dividend policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

    Source: Lake Shore Bancorp, Inc.
    Category: Financial

    Investor Relations/Media Contact
    Taylor M. Gilden
    Chief Financial Officer and Treasurer
    Lake Shore Bancorp, Inc.
    31 East Fourth Street
    Dunkirk, New York 14048
    (716) 366-4070 ext. 1065

    Selected Financial Condition Data   As of       As of  
        September 30,       December 31,  
        2024       2023  
        (Unaudited)  
        (Dollars in thousands)  
                   
    Total assets   $ 697,596       $ 725,118  
    Cash and cash equivalents     49,981         53,730  
    Securities available for sale, at fair value     58,782         60,442  
    Loans receivable, net     539,005         555,828  
    Deposits     587,563         590,924  
    Long-term debt     10,250         35,250  
    Stockholders’ equity     89,877         86,273  
    Condensed Statements of Income                  
        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2024       2023       2024       2023  
      (Unaudited)  
      (Dollars in thousands, except per share amounts)  
                                   
    Interest income $   8,851     $   8,721     $   26,215     $   25,142  
    Interest expense     3,468         2,426         10,492         6,342  
    Net interest income     5,383         6,295         15,723         18,800  
    (Credit) provision for credit losses     (229 )       (199 )       (866 )       (1,011 )
    Net interest income after (credit) provision for credit losses     5,612         6,494         16,589         19,811  
    Total non-interest income     791         605         2,236         1,712  
    Total non-interest expense     4,813         5,196         14,706         16,614  
    Income before income taxes     1,590         1,903         4,119         4,909  
    Income tax expense     258         332         657         838  
    Net income $   1,332     $   1,571     $   3,462     $   4,071  
    Basic and diluted earnings per share $   0.24     $   0.27     $   0.62     $   0.69  
        Three Months Ended     Three Months Ended  
        September 30, 2024     September 30, 2023  
        Average     Interest Income/     Yield/     Average     Interest Income/     Yield/  
        Balance     Expense     Rate(2)     Balance     Expense     Rate(2)  
        (Dollars in thousands)  
    Interest-earning assets:                                            
    Interest-earning deposits & federal funds sold   $   54,527     $   716       5.25 %   $   43,374     $   559       5.16 %
    Securities(1)       59,536         405       2.72 %       65,019         463       2.85 %
    Loans, including fees       542,612         7,730       5.70 %       565,011         7,699       5.45 %
    Total interest-earning assets       656,675         8,851       5.39 %       673,404         8,721       5.18 %
    Other assets       48,797                       45,506                
    Total assets   $   705,472                   $   718,910                
                                                 
    Interest-bearing liabilities                                            
    Demand & NOW accounts   $   66,739     $   15       0.09 %   $   76,171     $   19       0.10 %
    Money market accounts       145,641         986       2.71 %       123,998         405       1.31 %
    Savings accounts       57,772         10       0.07 %       69,327         13       0.08 %
    Time deposits       219,166         2,308       4.21 %       214,282         1,667       3.11 %
    Total deposits       489,318         3,319       2.71 %       483,778         2,104       1.74 %
    Borrowed funds & other interest-bearing liabilities       20,479         149       2.91 %       36,953         322       3.49 %
    Total interest-bearing liabilities       509,797         3,468       2.72 %       520,731         2,426       1.86 %
    Other non-interest bearing liabilities       107,327                       114,152                
    Stockholders’ equity       88,348                       84,027                
    Total liabilities & stockholders’ equity   $   705,472                   $   718,910                
    Net interest income           $   5,383                   $   6,295        
    Interest rate spread                     2.67 %                     3.32 %
    Net interest margin                     3.28 %                     3.74 %

    (1) The tax equivalent adjustment for bank qualified tax exempt municipal securities results in rates of 3.11% and 3.24% for the three months ended September 30, 2024 and 2023, respectively.
    (2) Annualized.

        Nine Months Ended     Nine Months Ended  
        September 30, 2024     September 30, 2023  
        Average     Interest Income/     Yield/     Average     Interest Income/     Yield/  
        Balance     Expense     Rate(2)     Balance     Expense     Rate(2)  
        (Dollars in thousands)  
    Interest-earning assets:                                            
    Interest-earning deposits & federal funds sold   $   50,409     $   1,962       5.19 %   $   34,214     $   1,214       4.73 %
    Securities(1)       60,082         1,243       2.76 %       70,268         1,502       2.85 %
    Loans, including fees       549,925         23,010       5.58 %       569,977         22,426       5.25 %
    Total interest-earning assets       660,416         26,215       5.29 %       674,459         25,142       4.97 %
    Other assets       49,771                       45,690                
    Total assets   $   710,187                   $   720,149                
                                                 
    Interest-bearing liabilities                                            
    Demand & NOW accounts   $   67,882     $   48       0.09 %   $   77,948     $   57       0.10 %
    Money market accounts       142,078         2,899       2.72 %       133,491         1,091       1.09 %
    Savings accounts       60,319         31       0.07 %       72,111         35       0.06 %
    Time deposits       223,108         6,956       4.16 %       203,527         4,149       2.72 %
    Total deposits       493,387         9,934       2.68 %       487,077         5,332       1.46 %
    Borrowed funds & other interest-bearing liabilities       25,099         558       2.96 %       39,451         1,010       3.41 %
    Total interest-bearing liabilities       518,486         10,492       2.70 %       526,528         6,342       1.61 %
    Other non-interest bearing liabilities       104,728                       110,108                
    Stockholders’ equity       86,973                       83,513                
    Total liabilities & stockholders’ equity   $   710,187                   $   720,149                
    Net interest income           $   15,723                   $   18,800        
    Interest rate spread                     2.59 %                     3.36 %
    Net interest margin                     3.17 %                     3.72 %

    (1) The tax equivalent adjustment for bank qualified tax exempt municipal securities results in rates of 3.14% and 3.26% for the nine months ended September 30, 2024 and 2023, respectively.
    (2) Annualized.

                       
      Three Months Ended     Nine Months Ended  
      September 30,     September 30,  
      2024   2023     2024   2023  
      (Unaudited)  
    Selected Financial Ratios:          
    Return on average assets   0.76 %   0.87 %     0.65 %   0.75 %
    Return on average equity   6.03 %   7.48 %     5.31 %   6.50 %
    Average interest-earning assets to average interest-bearing liabilities   128.81 %   129.32 %     127.37 %   128.10 %
    Interest rate spread   2.67 %   3.32 %     2.59 %   3.36 %
    Net interest margin   3.28 %   3.74 %     3.17 %   3.72 %
    Efficiency ratio   77.96 %   75.30 %     81.89 %   81.00 %
      As of   As of  
      September 30,   December 31,  
      2024   2023  
      (Unaudited)  
             
    Asset Quality Ratios:        
    Non-performing loans as a percentage of net loans   0.74 %   0.60 %
    Non-performing assets as a percentage of total assets   0.57 %   0.47 %
    Allowance for credit losses as a percentage of net loans   1.01 %   1.16 %
    Allowance for credit losses as a percentage of non-performing loans   137.03 %   193.09 %
      As of     As of  
      September 30,     December 31,  
      2024     2023  
        (Unaudited)  
                   
    Share and Capital Information:              
    Common stock, number of shares outstanding     5,737,036         5,686,288  
    Treasury stock, number of shares held     1,099,478         1,150,226  
    Book value per share $   15.67     $   15.17  
    Tier 1 leverage ratio     13.37 %       12.68 %
    Total risk-based capital ratio     18.85 %       17.77 %

    The MIL Network

  • MIL-OSI: CVB Financial Corp. Reports Earnings for the Third Quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    Third Quarter 2024

    • Net Earnings of $51 million, or $0.37 per share
    • Return on Average Assets of 1.23%
    • Return on Average Tangible Common Equity of 14.93%
    • Net Interest Margin of 3.05%

    Ontario, CA, Oct. 23, 2024 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended September 30, 2024.

    CVB Financial Corp. reported net income of $51.2 million for the quarter ended September 30, 2024, compared with $50.0 million for the second quarter of 2024 and $57.9 million for the third quarter of 2023. Diluted earnings per share were $0.37 for the third quarter, compared to $0.36 for the prior quarter and $0.42 for the same period last year. Net income of $51.2 million for the third quarter of 2024 produced an annualized return on average equity (“ROAE”) of 9.40%, an annualized return on average tangible common equity (“ROATCE”) of 14.93%, and an annualized return on average assets (“ROAA”) of 1.23%.

    David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “We are pleased with our third quarter results. The Bank continues to execute on our strategy of banking the best small to medium sized businesses in the markets we serve. The results in the third quarter represent our 190th consecutive quarter of profitability. I am very proud of the commitment of our associates to our mission and the loyalty of our customers to our shared vision of success.“

    Highlights for the Third Quarter of 2024

    • Net interest margin of 3.05%
    • Efficiency Ratio of 46.5%
    • TCE Ratio = 9.7% & CET1 Ratio > 15%
    • Net income grew by 2.4%, compared to the second quarter of 2024
    • Deposits and customer repurchase agreements increased $408 million compared to the end of the second quarter of 2024
    • Noninterest-bearing deposits were 59% of total deposits
    • Early redemption of $1.3 billion of Bank Term Funding Program borrowings
    • Sold $312 million in AFS securities for a loss of $11.6 million
    • Executed the sale and leaseback of two buildings generating gains of $9.1 million
    • Loans declined by $109 million, or 1.3% from the end of the second quarter of 2024
    • Net recoveries were $156,000 for the third quarter of 2024

    INCOME STATEMENT HIGHLIGHTS

      Three Months Ended   Nine Months Ended  
      September 30,
    2024

        June 30,
    2024

        September 30,
    2023

        September 30,
    2024

        September 30,
    2023

       
      (Dollars in thousands, except per share amounts)
    Net interest income $ 113,619     $ 110,849     $ 123,371     $ 336,929     $ 368,634    
    Recapure of (provision for) credit losses               (2,000 )           (4,000 )  
    Noninterest income   12,834       14,424       14,309       41,371       40,167    
    Noninterest expense   (58,835 )     (56,497 )     (55,058 )     (175,103 )     (163,956 )  
    Income taxes   (16,394 )     (18,741 )     (22,735 )     (53,339 )     (67,918 )  
    Net earnings $ 51,224     $ 50,035     $ 57,887     $ 149,858     $ 172,927    
    Earnings per common share:                  
    Basic $ 0.37     $ 0.36     $ 0.42     $ 1.07     $ 1.24    
    Diluted $ 0.37     $ 0.36     $ 0.42     $ 1.07     $ 1.24    
                       
    NIM   3.05 %     3.05 %     3.31 %     3.06 %     3.32 %  
    ROAA   1.23 %     1.24 %     1.40 %     1.23 %     1.41 %  
    ROAE   9.40 %     9.57 %     11.33 %     9.43 %     11.50 %  
    ROATCE   14.93 %     15.51 %     18.82 %     15.19 %     19.24 %  
    Efficiency ratio   46.53 %     45.10 %     39.99 %     46.29 %     40.11 %  

    Net Interest Income
    Net interest income was $113.6 million for the third quarter of 2024. This represented a $2.8 million, or 2.50%, increase from the second quarter of 2024, and a $9.8 million, or 7.90%, decrease from the third quarter of 2023. The quarter-over-quarter increase in net interest income was primarily due to a $7.0 million increase in interest income resulting from a $513 million average increase in our interest-earning balances due from the Federal Reserve, partially offset by a $3.8 million increase in interest on deposits. The decline in net interest income compared to the third quarter of 2023 was primarily due to a 26 basis point decline in net interest margin.

    Net Interest Margin
    Our tax equivalent net interest margin was 3.05% for both the second and third quarters of 2024, compared to 3.31% for the third quarter of 2023. Our cost of funds compared to the second quarter of 2024 increased nine basis points, which was offset by a six basis point increase in our interest-earning asset yield. The six basis point increase in our interest-earning asset yield was due to a five basis point increase in loan yields and funds on deposit at the Federal Reserve increasing as a percentage of earnings assets to 8.2%, from 4.8% in the prior quarter. Average funds held at the Federal Reserve of $1.22 billion, grew by $513 million from the second quarter of 2024, earning 5.4% on average for the third quarter. Our cost of funds increased in the third quarter to 1.47%, as our cost of deposits and customer repurchase agreements increased by 14 basis points to 1.01%. The cost of interest-bearing non-maturity deposits increased from the prior quarter by 22 basis points. On average, borrowings decreased by $121 million compared to the second quarter, while continuing to have an average cost of 4.77%. The 26 basis point decrease in net interest margin compared to the third quarter of 2023, was primarily the result of a 55 basis point increase in cost of funds. This increase in cost of funds from the prior year quarter was the result of a 46 basis point increase in the cost of deposits and an increase in the level of borrowings, which grew on average by $411 million. A 25 basis point increase in earning asset yields over the prior year quarter partially offset the increase in funding costs. The higher earning asset yields, included higher loan yields, which grew from 5.07% for the third quarter of 2023 to 5.31% for the third quarter of 2024. The higher earning asset yield was also the result of the increase in average funds held at the Federal Reserve, which grew from 3.1% of earning assets in the third quarter of 2023 to 8.2% in the third quarter of 2024.

    Earning Assets and Deposits
    On average, total earning assets grew by $262 million, or 1.79%, quarter-over-quarter. This growth includes the $513 million increase in average funds on deposit at the Federal Reserve. Investment securities and loans declined on average by $126.9 million and $126.3 million, respectively, when compared to the second quarter of 2024. The decline in investment securities includes the impact of selling approximately $300 million of AFS securities during the third quarter. Compared to the third quarter of 2023, the mix of assets changed modestly, with the average balance of investment securities decreasing by $462.6 million, declining from 37% to 34% of total earning assets. Conversely, the average amount of funds held at the Federal Reserve increased by $748.8 million, growing from 3.1% of total earning assets in the third quarter of 2023 to 8.2% for the third quarter of 2024. Noninterest-bearing deposits declined on average by $28.4 million, or 0.40%, from the second quarter of 2024 and interest-bearing deposits and customer repurchase agreements increased on average by $279.2 million. Compared to the third quarter of 2023, total deposits and customer repurchase agreements declined on average by $503.7 million, or 3.90%, including a decline of $688 million, or 8.8%, in noninterest-bearing deposits. Non-maturity interest-bearing deposits and customer repurchase agreements decreased by $247.5 million on average, while time deposits grew on average by $431.9 million. On average, noninterest-bearing deposits were 59.10% of total deposits during the most recent quarter, compared to 60.20% for the second quarter of 2024 and 62.09% for the third quarter of 2023.

        Three Months Ended  
    SELECTED FINANCIAL HIGHLIGHTS September 30, 2024   June 30, 2024   September 30, 2023  
        (Dollars in thousands)  
    Yield on average investment securities (TE)   2.67 %     2.71 %     2.64 %  
    Yield on average loans   5.31 %     5.26 %     5.07 %  
    Yield on average earning assets (TE)   4.43 %     4.37 %     4.18 %  
    Cost of deposits   0.98 %     0.88 %     0.52 %  
    Cost of funds   1.47 %     1.38 %     0.92 %  
    Net interest margin (TE)   3.05 %     3.05 %     3.31 %  
                               
    Average Earning Asset Mix Avg   % of Total   Avg   % of Total   Avg   % of Total
      Total investment securities $ 5,080,033   34.01 %   $ 5,206,959   35.49 %   $ 5,542,590   37.20 %  
      Interest-earning deposits with other institutions   1,232,551   8.25 %     716,916   4.89 %     473,391   3.18 %  
      Loans   8,605,270   57.61 %     8,731,587   59.51 %     8,862,462   59.48 %  
      Total interest-earning assets   14,935,866         14,673,474         14,900,003      

    Provision for Credit Losses
    There was no provision for credit losses in the third and second quarter of 2024, compared to $2.0 million in provision in the third quarter of 2023. Net recoveries for the third quarter of 2024 were $156,000, compared to net charge-offs $31,000 in the prior quarter. Allowance for credit losses represented 0.97% of gross loans at September 30, 2024, compared to 0.95% at June 30, 2024.

    Noninterest Income
    Noninterest income was $12.8 million for the third quarter of 2024, compared with $14.4 million for the second quarter of 2024 and $14.3 million for the third quarter of 2023. During the third quarter of 2024, the Bank executed sale-leaseback transactions with the sale of two buildings, which operate as Banking Centers, and were simultaneously leased back, resulting in a pre-tax net gain of $9.1 million. The gains on selling the buildings were offset by realizing a pre-tax net loss of $11.6 million on the sale of $312 million of AFS securities. Third quarter income from Bank Owned Life Insurance (“BOLI”) increased by $557,000 from the second quarter of 2024 and increased by $2 million compared to the third quarter of 2023. We experienced $320,000 in death benefits that exceeded the asset value on certain policies in the third quarter of 2024, compared to no death benefits in the second quarter of 2024 and no death benefits in the third quarter of 2023. The year-over-year increase of $2 million in BOLI income was primarily due to the restructuring and enhancements in BOLI policies during the fourth quarter of 2023. Trust and investment service fees grew by 4.0% or $137,000 compared to the prior quarter and by 9.8% or $319,000 compared to the third quarter of 2023.  

    Noninterest Expense
    Noninterest expense for the third quarter of 2024 was $58.8 million, compared to $56.5 million for the second quarter of 2024 and $55.0 million for the third quarter of 2023. The $2.3 million quarter-over-quarter increase included a $1.2 million increase in staff related expense, as annual salary increases took effect in July. The $690,000 quarter-over-quarter increase in regulatory assessments was due to the $700,000 accrual adjustment in the second quarter of 2024 related the FDIC special assessment. There was a $750,000 recapture of provision for unfunded loan commitments in the third quarter of 2024, compared to a $500,000 recapture of provision in the second quarter of 2024 and $900,000 recaptured in the third quarter of 2023. Occupancy and equipment expense grew by $432,000 or 7%, compared to the prior quarter, including the impact of the two buildings that were sold and leased back during the third quarter.

    The $3.8 million increase in noninterest expense year-over-year included increased staff related expenses of $1.9 million, or 5.48%. Professional services increased $738,000, including a $627,000 increase in legal expense year-over-year. Occupancy and equipment expense increased by $586,000, or 10.43% and software expense increased $258,000, or 7% year-over-year. As a percentage of average assets, noninterest expense was 1.42% for the third quarter of 2024, compared to 1.40% for the second quarter of 2024 and 1.33% for the third quarter of 2023. The efficiency ratio for the third quarter of 2024 was 46.53%, compared to 45.10% for the second quarter of 2024 and 39.99% for the third quarter of 2023.  

    Income Taxes
    Our effective tax rate for the nine months ended September 30, 2024 was 26.25%, compared with 28.20% for the same period of 2023. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

    BALANCE SHEET HIGHLIGHTS

    Assets
    The Company reported total assets of $15.4 billion at September 30, 2024. This represented a decrease of $748.3 million, or 4.63%, from total assets of $16.15 billion at June 30, 2024. The decrease in assets included a $416.9 million decrease in interest-earning balances due from the Federal Reserve, a $304.8 million decrease in investment securities, and a $109.4 million decrease in net loans.

    Total assets decreased by $617.8 million, or 3.86%, from total assets of $16.02 billion at December 31, 2023. The decrease in assets included a $549.9 million decrease in investment securities, and a $328.4 million decrease in net loans, partially offset by a $142.9 million increase in interest-earning balances due from the Federal Reserve.

    Total assets at September 30, 2024 decreased by $499.8 million, or 3.14%, from total assets of $15.90 billion at September 30, 2023. The decrease in assets was primarily due to a $491.8 million decrease in investment securities and a $299.0 million decrease in net loans, partially offset by an increase of $188.6 million in interest-earning balances due from the Federal Reserve and a $57.1 million increase in the cash surrender value of BOLI.

    Sale-Leaseback Transaction
    During the third quarter of 2024, the Bank executed sale-leaseback transactions and sold two buildings, that are utilized as Banking Centers, for an aggregate sale price of $17 million. The Bank simultaneously entered into lease agreements with the respective purchasers for initial terms of 15 and 18 years. These sale-leaseback transactions resulted in a pre-tax net gain of $9.1 million for the third quarter of 2024. The Bank also recorded Right of Use (“ROU”) assets and corresponding operating lease liabilities each totaling $11.2 million.

    Investment Securities and BOLI
    Total investment securities were $4.87 billion at September 30, 2024, a decrease of $549.9 million, or 10.14% from December 31, 2023, and a decrease of $491.8 million, or 9.17%, from $5.36 billion at September 30, 2023.  

    At September 30, 2024, investment securities available-for-sale (“AFS”) totaled $2.47 billion, inclusive of a pre-tax net unrealized loss of $367.7 million. AFS securities decreased by $280.2 million from the prior quarter end, by $490.5 million, or 16.59%, from December 31, 2023 and decreased by $407.6 million, or 14.19%, from $2.87 billion at September 30, 2023. Pre-tax unrealized loss decreased by $120.2 million from the end of the prior quarter, and declined by $82.1 million from December 31, 2023 and by $260.7 million from September 30, 2023.

    Concurrent with the sale-leaseback transactions during the third quarter of 2024, the Bank sold AFS securities with a book value of $312 million, resulting in a net pre-tax loss of $11.6 million.

    At September 30, 2024, investment securities held-to-maturity (“HTM”) totaled $2.41 billion, a decrease of $24.6 million from the prior quarter end, a $59.4 million, or 2.41% decline from December 31, 2023, and a decrease of $84.2 million, or 3.38%, from September 30, 2023.

    Combined, the AFS and HTM investments in mortgage backed securities (“MBS”) and collateralized mortgage obligations (“CMO”) totaled $3.82 billion or approximately 78% of the total investment securities at September 30, 2024. Virtually all of our MBS and CMO are issued or guaranteed by government or government sponsored enterprises, which have the implied guarantee of the U.S. Government. In addition, at September 30, 2024, we had $552.6 million of Government Agency securities that represent approximately 11.3% of the total investment securities.

    Our combined AFS and HTM municipal securities totaled $485.7 million as of September 30, 2024, or 10% of our total investment portfolio. These securities are located in 35 states. Our largest concentrations of holdings by state, as a percentage of total municipal bonds, are located in Texas at 16.09%, Minnesota at 11.07%, and California at 9.71%.

    At September 30, 2024, the Company had $316.6 million of Bank Owned Life insurance (“BOLI”), compared to $308.7 million at December 31, 2023 and $259.5 million at September 30, 2023. The $57.1 million increase in value of BOLI, when compared to September 30, 2023, was primarily due to a restructuring of the Company’s life insurance policies at the end of 2023, including a $4.5 million write-down in value on surrender policies that was offset by a $10.9 million enhancement to cash surrender values, as well as additional policy purchases totaling $41 million. This restructuring has increased returns on our BOLI policies resulting in additional non-taxable noninterest income in 2024.

    Loans
    Total loans and leases, at amortized cost, of $8.57 billion at September 30, 2024 decreased by $109.3 million, or 1.26%, from June 30, 2024. The quarter-over quarter decrease in loans included decreases of $46.3 million in commercial real estate loans, $37.5 million in construction loans, $19.7 million in commercial and industrial loans, and $8.1 million in dairy & livestock and agribusiness loans.

    Total loans and leases, at amortized cost, decreased by $332.3 million, or 3.73%, from December 31, 2023. The decrease in total loans included decreases of $165.9 million in commercial real estate loans, $70.5 million in dairy & livestock and agribusiness loans, $52.0 million in construction loans, and $33.4 million in commercial and industrial loans.

    Total loans and leases, at amortized cost, decreased by $305.1 million, or 3.44%, from September 30, 2023. The $305.1 million decrease included decreases of $224.4 million in commercial real estate loans, $48.3 million in construction loans, $13.1 million in SBA loans, $9.0 million in dairy & livestock and agribusiness loans, and $8.0 million in municipal lease financings.

    Asset Quality
    During the third quarter of 2024, we experienced credit charge-offs of $26,000 and total recoveries of $182,000, resulting in net recoveries of $156,000. The allowance for credit losses (“ACL”) totaled $82.9 million at September 30, 2024, compared to $82.8 million at June 30, 2024 and $89.0 million at September 30, 2023. At September 30, 2024, ACL as a percentage of total loans and leases outstanding was 0.97%. This compares to 0.95% at June 30, 2024 and 0.98% at December 31, 2023 and 1.00% at September 30, 2023.

    Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

    Nonperforming Assets and Delinquency Trends September 30,
    2024
      June 30,
    2024
      September 30,
    2023
       
               
    Nonperforming loans   (Dollars in thousands)    
    Commercial real estate   $ 18,794     $ 21,908     $ 3,655      
    SBA     151       337       1,050      
    Commercial and industrial     2,825       2,712       4,672      
    Dairy & livestock and agribusiness     143             243      
    SFR mortgage                 339      
    Consumer and other loans                 4      
    Total   $ 21,913     $ 24,957     $ 9,963   [1]  
    % of Total loans     0.26 %     0.29 %     0.11 %    
    OREO                
    Commercial real estate   $     $     $      
    Commercial and industrial     647       647            
    SFR mortgage                      
    Total   $ 647     $ 647     $      
                     
    Total nonperforming assets   $ 22,560     $ 25,604     $ 9,963      
    % of Nonperforming assets to total assets     0.15 %     0.16 %     0.06 %    
                     
    Past due 30-89 days (accruing)                
    Commercial real estate   $ 30,701     $ 43     $ 136      
    SBA                      
    Commercial and industrial     64       103            
    Dairy & livestock and agribusiness                      
    SFR mortgage                      
    Consumer and other loans                      
    Total   $ 30,765     $ 146     $ 136      
    % of Total loans     0.36 %     0.00 %     0.00 %    
                     
    Classified Loans   $ 124,606     $ 124,728     $ 92,246      
         
    [1] Includes $2.6 million of nonaccrual loans past due 30-89 days.    

    The $3.0 million decrease in nonperforming loans from June 30, 2024 was primarily due to the payoff of one nonperforming commercial real estate loans totaling $2.3 million and $1.4 million in paydowns of nonperforming commercial real estate loans associated with two relationships. Past due loans grew to more than $30 million on September 30, 2024. Classified loans are loans that are graded “substandard” or worse. Classified loans decreased $122,000 quarter-over-quarter, primarily due to a $668,000 net decrease in classified commercial real estate loans, which included the payoff of 4 loans totaling $11.5 million that were partially offset by the addition of six classified commercial real estate loans in the third quarter of 2024. Classified dairy & livestock and agribusiness loans declined by $3.5 million due to paydowns and classified commercial and industrial loans increased $3.5 million primarily due to the addition of one classified commercial and industrial loan.

    Deposits & Customer Repurchase Agreements
    Deposits of $12.07 billion and customer repurchase agreements of $394.5 million totaled $12.47 billion at September 30, 2024. This represented a net increase of $407.9 million compared to June 30, 2024. Total deposits at September 30, 2024 included $400 million in brokered time deposits. Total deposits and customer repurchase agreements increased $761.7 million, or 6.51%, when compared to $11.71 billion at December 31, 2023 partially due to the growth in brokered deposits, and decreased $161.3 million, or 1.28% when compared to $12.63 billion at September 30, 2023.

    Noninterest-bearing deposits were $7.14 billion at September 30, 2024, an increase of $46.7 million, or 0.66%, when compared to $7.09 billion at June 30, 2024. Noninterest-bearing deposits decreased by $69.4 million, or 0.96% when compared to $7.21 billion at December 31, 2023, and decreased by $449.8 million, or 5.93% when compared to $7.59 billion at September 30, 2023. At September 30, 2024, noninterest-bearing deposits were 59.12% of total deposits, compared to 60.13% at June 30, 2024, 63.03% at December 31, 2023, and 61.39% at September 30, 2023.

    Borrowings
    As of September 30, 2024, total borrowings consisted of $500 million of FHLB advances. The FHLB advances include maturities of $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027. During the third quarter of 2024, we repaid the $1.3 billion of borrowings from the Federal Reserve’s Bank Term Funding Program, with a cost of 4.76%, that were scheduled to mature in January of 2025.

    Capital
    The Company’s total equity was $2.20 billion at September 30, 2024. This represented an overall increase of $119.9 million from total equity of $2.08 billion at December 31, 2023. Increases to equity included $149.9 million in net earnings and a $48.7 million increase in other comprehensive income, that were partially offset by $83.9 million in cash dividends. We engaged in no stock repurchases during the first nine months of 2024. Our tangible book value per share at September 30, 2024 was $10.17.

    Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards. 

            CVB Financial Corp. Consolidated  
    Capital Ratios   Minimum Required Plus Capital Conservation Buffer   September 30, 2024   December 31, 2023   September 30, 2023  
                       
    Tier 1 leverage capital ratio   4.0 %   10.6 %   10.3 %   10.0 %  
    Common equity Tier 1 capital ratio   7.0 %   15.8 %   14.6 %   14.4 %  
    Tier 1 risk-based capital ratio   8.5 %   15.8 %   14.6 %   14.4 %  
    Total risk-based capital ratio   10.5 %   16.6 %   15.5 %   15.3 %  
                       
    Tangible common equity ratio       9.7 %   8.5 %   7.7 %  
                       

    CitizensTrust

    As of September 30, 2024, CitizensTrust had approximately $4.7 billion in assets under management and administration, including $3.3 billion in assets under management. Revenues were $3.6 million for the third quarter of 2024, compared to $3.2 million for the same period of 2023. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

    Corporate Overview
    CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

    Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

    Conference Call
    Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, October 24, 2024 to discuss the Company’s third quarter 2024 financial results. The conference call can be accessed live by registering at: https://register.vevent.com/register/BI6b56a1a5e9bf45efa402c04252b87308

    The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

    Safe Harbor
    Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of economic developments, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

    General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target, key personnel and customers into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits (including low cost deposits) or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; systemic or non-systemic bank failures or crises; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2023 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

    The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
                 
                 
        September 30,
    2024
      December 31,
    2023
      September 30,
    2023
     
    Cash and due from banks   $ 200,651     $ 171,396     $ 176,488  
    Interest-earning balances due from Federal Reserve     252,809       109,889       64,207  
    Total cash and cash equivalents     453,460       281,285       240,695  
    Interest-earning balances due from depository institutions     24,338       8,216       4,108  
    Investment securities available-for-sale     2,465,585       2,956,125       2,873,163  
    Investment securities held-to-maturity     2,405,254       2,464,610       2,489,441  
    Total investment securities     4,870,839       5,420,735       5,362,604  
    Investment in stock of Federal Home Loan Bank (FHLB)     18,012       18,012       18,012  
    Loans and lease finance receivables     8,572,565       8,904,910       8,877,632  
    Allowance for credit losses     (82,942 )     (86,842 )     (88,995 )
    Net loans and lease finance receivables     8,489,623       8,818,068       8,788,637  
    Premises and equipment, net     36,275       44,709       44,561  
    Bank owned life insurance (BOLI)     316,553       308,706       259,468  
    Intangibles     11,130       15,291       16,736  
    Goodwill     765,822       765,822       765,822  
    Other assets     417,164       340,149       402,372  
    Total assets   $ 15,403,216     $ 16,020,993     $ 15,903,015  
    Liabilities and Stockholders’ Equity            
    Liabilities:            
    Deposits:            
    Noninterest-bearing   $ 7,136,824     $ 7,206,175     $ 7,586,649  
    Investment checking     504,028       552,408       560,223  
    Savings and money market     3,745,707       3,278,664       3,906,187  
    Time deposits     685,930       396,395       305,727  
    Total deposits     12,072,489       11,433,642       12,358,786  
    Customer repurchase agreements     394,515       271,642       269,552  
    Other borrowings     500,000       2,070,000       1,120,000  
    Other liabilities     238,381       167,737       203,276  
    Total liabilities     13,205,385       13,943,021       13,951,614  
    Stockholders’ Equity            
    Stockholders’ equity     2,472,660       2,401,541       2,378,539  
    Accumulated other comprehensive loss, net of tax     (274,829 )     (323,569 )     (427,138 )
    Total stockholders’ equity     2,197,831       2,077,972       1,951,401  
    Total liabilities and stockholders’ equity   $ 15,403,216     $ 16,020,993     $ 15,903,015  
                 
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
                         
                         
          Three Months Ended
       Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Assets                    
    Cash and due from banks   $ 162,383     $ 162,724     $ 176,133     $ 162,385     $ 176,559  
    Interest-earning balances due from Federal Reserve     1,216,671       704,023       467,873       786,282       285,573  
    Total cash and cash equivalents     1,379,054       866,747       644,006       948,667       462,132  
    Interest-earning balances due from depository institutions     15,880       12,893       5,518       13,161       7,630  
    Investment securities available-for-sale     2,661,990       2,764,096       3,040,965       2,774,981       3,139,369  
    Investment securities held-to-maturity     2,418,043       2,442,863       2,501,625       2,439,427       2,524,799  
    Total investment securities     5,080,033       5,206,959       5,542,590       5,214,408       5,664,168  
    Investment in stock of FHLB     18,012       18,012       21,560       18,012       27,460  
    Loans and lease finance receivables     8,605,270       8,731,587       8,862,462       8,720,058       8,905,697  
    Allowance for credit losses     (82,810 )     (82,815 )     (86,986 )     (83,788 )     (86,222 )
    Net loans and lease finance receivables     8,522,460       8,648,772       8,775,476       8,636,270       8,819,475  
    Premises and equipment, net     38,906       43,624       45,315       42,291       45,731  
    Bank owned life insurance (BOLI)     315,435       312,645       258,485       312,574       257,358  
    Intangibles     11,819       13,258       17,526       13,216       19,256  
    Goodwill     765,822       765,822       765,822       765,822       765,822  
    Other assets     365,740       390,834       357,280       368,951       343,782  
    Total assets   $ 16,513,161     $ 16,279,566     $ 16,433,578     $ 16,333,372     $ 16,412,814  
    Liabilities and Stockholders’ Equity                    
    Liabilities:                    
    Deposits:                    
    Noninterest-bearing   $ 7,124,952     $ 7,153,315     $ 7,813,120     $ 7,153,557     $ 7,908,749  
    Interest-bearing     4,931,220       4,728,864       4,769,897       4,705,566       4,624,848  
    Total deposits     12,056,172       11,882,179       12,583,017       11,859,123       12,533,597  
    Customer repurchase agreements     363,959       287,128       340,809       320,280       461,478  
    Other borrowings     1,729,405       1,850,330       1,318,098       1,856,771       1,273,521  
    Other liabilities     196,832       157,463       164,624       174,328       133,046  
    Total liabilities     14,346,368       14,177,100       14,406,548       14,210,502       14,401,642  
    Stockholders’ Equity                    
    Stockholders’ equity     2,479,766       2,456,945       2,383,922       2,456,348       2,357,028  
    Accumulated other comprehensive loss, net of tax     (312,973 )     (354,479 )     (356,892 )     (333,478 )     (345,856 )
    Total stockholders’ equity     2,166,793       2,102,466       2,027,030       2,122,870       2,011,172  
    Total liabilities and stockholders’ equity   $ 16,513,161     $ 16,279,566     $ 16,433,578     $ 16,333,372     $ 16,412,814  
                         
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
                         
                         
          Three Months Ended
           Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Interest income:                    
    Loans and leases, including fees   $ 114,929     $ 114,200     $ 113,190     $ 345,478     $ 332,574
    Investment securities:                    
    Investment securities available-for-sale     20,178       21,225       22,441       62,849       61,393
    Investment securities held-to-maturity     13,284       13,445       13,576       40,131       41,272
    Total investment income     33,462       34,670       36,017       102,980       102,665
    Dividends from FHLB stock     375       377       598       1,171       1,430
    Interest-earning deposits with other institutions     16,986       9,825       6,422       32,884       11,583
    Total interest income     165,752       159,072       156,227       482,513       448,252
    Interest expense:                    
    Deposits     29,821       25,979       16,517       77,166       32,647
    Borrowings and customer repurchase agreements     22,312       22,244       16,339       68,418       46,971
    Total interest expense     52,133       48,223       32,856       145,584       79,618
    Net interest income before provision for (recapture of) credit losses     113,619       110,849       123,371       336,929       368,634
    Provision for (recapture of) credit losses                 2,000             4,000
    Net interest income after provision for (recapture of) credit losses     113,619       110,849       121,371       336,929       364,634
    Noninterest income:                    
    Service charges on deposit accounts     5,120       5,117       5,062       15,273       15,244
    Trust and investment services     3,565       3,428       3,246       10,217       9,475
    Loss on sale of AFS investment securities     (11,582 )                 (11,582 )    
    Gain on sale leaseback transactions     9,106                   9,106      
    Other     6,625       5,879       6,001       18,357       15,448
    Total noninterest income     12,834       14,424       14,309       41,371       40,167
    Noninterest expense:                    
    Salaries and employee benefits     36,647       35,426       34,744       108,474       103,539
    Occupancy and equipment     6,204       5,772       5,618       17,541       16,585
    Professional services     2,855       2,726       2,117       7,836       6,375
    Computer software expense     3,906       3,949       3,648       11,380       10,372
    Marketing and promotion     1,964       1,956       1,628       5,550       4,664
    Amortization of intangible assets     1,286       1,437       1,567       4,161       5,006
    (Recapture of) provision for unfunded loan commitments     (750 )     (500 )     (900 )     (1,250 )    
    Other     6,723       5,731       6,636       21,411       17,415
    Total noninterest expense     58,835       56,497       55,058       175,103       163,956
    Earnings before income taxes     67,618       68,776       80,622       203,197       240,845
    Income taxes     16,394       18,741       22,735       53,339       67,918
    Net earnings   $ 51,224     $ 50,035     $ 57,887     $ 149,858     $ 172,927
                         
    Basic earnings per common share   $ 0.37     $ 0.36     $ 0.42     $ 1.07     $ 1.24
    Diluted earnings per common share   $ 0.37     $ 0.36     $ 0.42     $ 1.07     $ 1.24
    Cash dividends declared per common share   $ 0.20     $ 0.20     $ 0.20     $ 0.60     $ 0.60
                         
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands, except per share amounts)
                         
        Three Months Ended   Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Interest income – tax equivalent (TE)   $ 166,285     $ 159,607     $ 156,771     $ 484,120     $ 449,888  
    Interest expense     52,133       48,223       32,856       145,584       79,618  
    Net interest income – (TE)   $ 114,152     $ 111,384     $ 123,915     $ 338,536     $ 370,270  
                         
    Return on average assets, annualized     1.23 %     1.24 %     1.40 %     1.23 %     1.41 %
    Return on average equity, annualized     9.40 %     9.57 %     11.33 %     9.43 %     11.50 %
    Efficiency ratio [1]     46.53 %     45.10 %     39.99 %     46.29 %     40.11 %
    Noninterest expense to average assets, annualized     1.42 %     1.40 %     1.33 %     1.43 %     1.34 %
    Yield on average loans     5.31 %     5.26 %     5.07 %     5.29 %     4.99 %
    Yield on average earning assets (TE)     4.43 %     4.37 %     4.18 %     4.38 %     4.04 %
    Cost of deposits     0.98 %     0.88 %     0.52 %     0.87 %     0.35 %
    Cost of deposits and customer repurchase agreements     1.01 %     0.87 %     0.51 %     0.87 %     0.34 %
    Cost of funds     1.47 %     1.38 %     0.92 %     1.39 %     0.75 %
    Net interest margin (TE)     3.05 %     3.05 %     3.31 %     3.06 %     3.32 %
    [1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.        
                         
    Tangible Common Equity Ratio (TCE) [2]                    
      CVB Financial Corp. Consolidated     9.71 %     8.68 %     7.73 %        
      Citizens Business Bank     9.59 %     8.57 %     7.63 %        
    [2] (Capital – [GW+Intangibles])/(Total Assets – [GW+Intangibles])        
                         
    Weighted average shares outstanding                    
    Basic     138,649,763       138,583,510       138,345,000       138,415,424       138,360,531  
    Diluted     138,839,499       138,669,058       138,480,633       138,548,651       138,481,462  
    Dividends declared   $ 27,977     $ 28,018     $ 27,901     $ 83,881     $ 83,695  
    Dividend payout ratio [3]     54.62 %     56.00 %     48.20 %     55.97 %     48.40 %
    [3] Dividends declared on common stock divided by net earnings.        
                         
    Number of shares outstanding – (end of period)     139,678,314       139,677,162       139,337,699          
    Book value per share   $ 15.73     $ 15.12     $ 14.00          
    Tangible book value per share   $ 10.17     $ 9.55     $ 8.39          
                         
        September 30,
    2024
      December 31,
    2023
      September 30,
    2023
           
                   
    Nonperforming assets:                    
    Nonaccrual loans   $ 21,913     $ 21,302     $ 9,963          
    Other real estate owned (OREO), net     647                      
    Total nonperforming assets   $ 22,560     $ 21,302     $ 9,963          
    Modified loans/performing troubled debt restructured loans (TDR) [4]   $ 15,769     $ 9,460     $ 7,304          
                         
    [4] Effective January 1, 2023, performing and nonperforming TDRs are reflected as Loan Modifications to borrowers experiencing financial difficulty.        
                         
    Percentage of nonperforming assets to total loans outstanding and OREO     0.26 %     0.24 %     0.11 %        
    Percentage of nonperforming assets to total assets     0.15 %     0.13 %     0.06 %        
    Allowance for credit losses to nonperforming assets     367.65 %     407.67 %     893.26 %        
                         
        Three Months Ended    Nine Months Ended
        September 30,
    2024
      June 30,
    2024
      September 30,
    2023
      September 30,
    2024
      September 30,
    2023
    Allowance for credit losses:                    
     Beginning balance   $ 82,786     $ 82,817     $ 86,967     $ 86,842     $ 85,117  
    Total charge-offs     (26 )     (51 )     (26 )     (4,344 )     (224 )
    Total recoveries on loans previously charged-off     182       20       54       444       102  
    Net recoveries (charge-offs)     156       (31 )     28       (3,900 )     (122 )
    Provision for (recapture of) credit losses                 2,000             4,000  
    Allowance for credit losses at end of period   $ 82,942     $ 82,786     $ 88,995     $ 82,942     $ 88,995  
                         
    Net recoveries (charge-offs) to average loans     0.002 %     -0.000 %     0.000 %     -0.045 %     -0.001 %
                         
    CVB FINANCIAL CORP. AND SUBSIDIARIES  
    SELECTED FINANCIAL HIGHLIGHTS  
    (Unaudited)  
    (Dollars in millions)  
                                             
    Allowance for Credit Losses by Loan Type                                    
                                             
        September 30, 2024   December 31, 2023   September 30, 2023    
        Allowance
    For Credit
    Losses
      Allowance
    as a % of
    Total Loans
    by Respective
    Loan Type
      Allowance
    For Credit
    Losses
      Allowance
    as a % of
    Total Loans
    by Respective
    Loan Type
      Allowance
    For Credit
    Losses
      Allowance
    as a % of
    Total Loans
    by Respective
    Loan Type
       
                                             
    Commercial real estate   $ 69.7     1.05 %     $ 69.5     1.02 %     $ 70.9     1.04 %      
    Construction     0.5     3.07 %       1.3     1.91 %       1.0     1.59 %      
    SBA     2.5     0.92 %       2.7     0.99 %       3.0     1.08 %      
    Commercial and industrial     5.3     0.56 %       9.1     0.94 %       9.3     0.99 %      
    Dairy & livestock and agribusiness     3.8     1.12 %       3.1     0.75 %       3.6     1.01 %      
    Municipal lease finance receivables     0.2     0.28 %       0.2     0.29 %       0.3     0.33 %      
    SFR mortgage     0.4     0.16 %       0.5     0.20 %       0.5     0.20 %      
    Consumer and other loans     0.5     0.99 %       0.4     0.85 %       0.4     0.82 %      
                                             
    Total   $ 82.9     0.97 %     $ 86.8     0.98 %     $ 89.0     1.00 %      
                                             
    CVB FINANCIAL CORP. AND SUBSIDIARIES  
    SELECTED FINANCIAL HIGHLIGHTS  
    (Unaudited)  
    (Dollars in thousands, except per share amounts)  
                               
    Quarterly Common Stock Price  
                               
          2024       2023       2022    
    Quarter End   High   Low   High   Low   High   Low  
    March 31,   $ 20.45   $ 15.95     $ 25.98     $ 16.34     $ 24.37     $ 21.36    
    June 30,   $ 17.91   $ 15.71     $ 16.89     $ 10.66     $ 25.59     $ 22.37    
    September 30,   $ 20.29   $ 16.08     $ 19.66     $ 12.89     $ 28.14     $ 22.63    
    December 31,   $   $     $ 21.77     $ 14.62     $ 29.25     $ 25.26    
                               
    Quarterly Consolidated Statements of Earnings  
                               
            Q3   Q2   Q1   Q4   Q3  
              2024       2024       2024       2023       2023    
    Interest income                          
    Loans and leases, including fees       $ 114,929     $ 114,200     $ 116,349     $ 115,721     $ 113,190    
    Investment securities and other         50,823       44,872       41,340       42,357       43,037    
    Total interest income         165,752       159,072       157,689       158,078       156,227    
    Interest expense                          
    Deposits         29,821       25,979       21,366       18,888       16,517    
    Borrowings and customer repurchase agreements     22,312       22,244       23,862       19,834       16,339    
    Total interest expense         52,133       48,223       45,228       38,722       32,856    
    Net interest income before (recapture of)                      
    provision for credit losses         113,619       110,849       112,461       119,356       123,371    
    (Recapture of) provision for credit losses                       (2,000 )     2,000    
    Net interest income after (recapture of)                      
    provision for credit losses         113,619       110,849       112,461       121,356       121,371    
                               
    Noninterest income         12,834       14,424       14,113       19,163       14,309    
    Noninterest expense         58,835       56,497       59,771       65,930       55,058    
    Earnings before income taxes         67,618       68,776       66,803       74,589       80,622    
    Income taxes         16,394       18,741       18,204       26,081       22,735    
    Net earnings       $ 51,224     $ 50,035     $ 48,599     $ 48,508     $ 57,887    
                               
    Effective tax rate         24.25 %     27.25 %     27.25 %     34.97 %     28.20 %  
                               
    Basic earnings per common share       $ 0.37     $ 0.36     $ 0.35     $ 0.35     $ 0.42    
    Diluted earnings per common share     $ 0.37     $ 0.36     $ 0.35     $ 0.35     $ 0.42    
                               
    Cash dividends declared per common share   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20    
                               
    Cash dividends declared       $ 27,977     $ 28,018     $ 27,886     $ 27,945     $ 27,901    
                               
    CVB FINANCIAL CORP. AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
                         
    Loan Portfolio by Type
        September 30, June 30,   March 31,   December 31,   September 30,
          2024       2024       2024       2023       2023  
                         
    Commercial and industrial   $ 6,618,637     $ 6,664,925     $ 6,720,538     $ 6,784,505     $ 6,843,059  
    Construction     14,755       52,227       58,806       66,734       63,022  
    SBA     272,001       267,938       268,320       270,619       283,124  
    SBA – PPP     1,255       1,757       2,249       2,736       3,233  
    Commercial and industrial     936,489       956,184       963,120       969,895       938,064  
    Dairy & livestock and agribusiness     342,445       350,562       351,624       412,891       351,463  
    Municipal lease finance receivables     67,585       70,889       72,032       73,590       75,621  
    SFR mortgage     267,181       267,593       276,475       269,868       268,171  
    Consumer and other loans     52,217       49,771       57,549       54,072       51,875  
    Gross loans, at amortized cost     8,572,565       8,681,846       8,770,713       8,904,910       8,877,632  
    Allowance for credit losses     (82,942 )     (82,786 )     (82,817 )     (86,842 )     (88,995 )
    Net loans   $ 8,489,623     $ 8,599,060     $ 8,687,896     $ 8,818,068     $ 8,788,637  
                         
                         
                         
    Deposit Composition by Type and Customer Repurchase Agreements
                         
        September 30, June 30,   March 31,   December 31,   September 30,
          2024       2024       2024       2023       2023  
                         
    Noninterest-bearing   $ 7,136,824     $ 7,090,095     $ 7,112,789     $ 7,206,175     $ 7,586,649  
    Investment checking     504,028       515,930       545,066       552,408       560,223  
    Savings and money market     3,745,707       3,409,320       3,561,512       3,278,664       3,906,187  
    Time deposits     685,930       774,980       675,554       396,395       305,727  
    Total deposits     12,072,489       11,790,325       11,894,921       11,433,642       12,358,786  
                         
    Customer repurchase agreements     394,515       268,826       275,720       271,642       269,552  
    Total deposits and customer repurchase agreements   $ 12,467,004     $ 12,059,151     $ 12,170,641     $ 11,705,284     $ 12,628,338  
                         
    CVB FINANCIAL CORP. AND SUBSIDIARIES  
    SELECTED FINANCIAL HIGHLIGHTS  
    (Unaudited)  
    (Dollars in thousands)  
                           
    Nonperforming Assets and Delinquency Trends  
        September 30, June 30,   March 31,   December 31,   September 30,
     
          2024       2024       2024       2023       2023    
    Nonperforming loans:                      
    Commercial real estate   $ 18,794     $ 21,908     $ 10,661     $ 15,440     $ 3,655    
    Construction                                
    SBA     151       337       54       969       1,050    
    Commercial and industrial     2,825       2,712       2,727       4,509       4,672    
    Dairy & livestock and agribusiness     143             60       60       243    
    SFR mortgage                 308       324       339    
    Consumer and other loans                             4    
    Total   $ 21,913     $ 24,957     $ 13,810     $ 21,302     $ 9,963   [1]
    % of Total loans     0.26 %     0.29 %     0.16 %     0.24 %     0.11 %  
                           
    Past due 30-89 days (accruing):                      
    Commercial real estate   $ 30,701     $ 43     $ 19,781     $ 300     $ 136    
    Construction                                
    SBA                 408       108          
    Commercial and industrial     64       103       6       12          
    Dairy & livestock and agribusiness                                
    SFR mortgage                       201          
    Consumer and other loans                       18          
    Total   $ 30,765     $ 146     $ 20,195     $ 639     $ 136    
    % of Total loans     0.36 %     0.00 %     0.23 %     0.01 %     0.00 %  
                           
    OREO:                      
    Commercial real estate   $     $     $     $     $    
    SBA                                
    Commercial and industrial     647       647       647                
    SFR mortgage                                
    Total   $ 647     $ 647     $ 647     $     $    
    Total nonperforming, past due, and OREO   $ 53,325     $ 25,750     $ 34,652     $ 21,941     $ 10,099    
    % of Total loans     0.62 %     0.30 %     0.40 %     0.25 %     0.11 %  
                           
      [1] Includes $2.6 million of nonaccrual loans past due 30-89 days.                
                           
       
    CVB FINANCIAL CORP. AND SUBSIDIARIES  
    SELECTED FINANCIAL HIGHLIGHTS  
    (Unaudited)  
                       
    Regulatory Capital Ratios  
                       
                       
                       
            CVB Financial Corp. Consolidated  
    Capital Ratios   Minimum Required Plus
    Capital Conservation Buffer
      September 30,
    2024
      December 31,
    2023
      September 30,
    2023
     
                       
    Tier 1 leverage capital ratio   4.0 %   10.6 %   10.3 %   10.0 %  
    Common equity Tier 1 capital ratio   7.0 %   15.8 %   14.6 %   14.4 %  
    Tier 1 risk-based capital ratio   8.5 %   15.8 %   14.6 %   14.4 %  
    Total risk-based capital ratio   10.5 %   16.6 %   15.5 %   15.3 %  
                       
    Tangible common equity ratio       9.7 %   8.5 %   7.7 %  
                       
    Tangible Book Value Reconciliations (Non-GAAP)
     
    The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of tangible book value to the Company stockholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of September 30, 2024, December 31, 2023 and September 30, 2023.   
     
                   
          September 30,
    2024
      December 31,
    2023
      September 30,
    2023
     
          (Dollars in thousands, except per share amounts)  
                 
    Stockholders’ equity   $ 2,197,831     $ 2,077,972     $ 1,951,401  
    Less: Goodwill     (765,822 )     (765,822 )     (765,822 )
    Less: Intangible assets     (11,130 )     (15,291 )     (16,736 )
    Tangible book value   $ 1,420,879     $ 1,296,859     $ 1,168,843  
    Common shares issued and outstanding     139,678,314       139,344,981       139,337,699  
    Tangible book value per share   $ 10.17     $ 9.31     $ 8.39  
                 
    Return on Average Tangible Common Equity Reconciliations (Non-GAAP)
                             
    The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company’s average stockholders’ equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.
     
          Three Months Ended     Nine Months Ended
          September 30, June 30,   September 30, September 30, September 30,
            2024       2024       2023       2024       2023    
          (Dollars in thousands)  
                             
      Net Income   $ 51,224     $ 50,035     $ 57,887     $ 149,858     $ 172,927    
      Add: Amortization of intangible assets     1,286       1,437       1,567       4,161       5,006    
      Less: Tax effect of amortization of intangible assets [1]     (380 )     (425 )     (463 )     (1,230 )     (1,480 )  
      Tangible net income   $ 52,130     $ 51,047     $ 58,991     $ 152,789     $ 176,453    
                             
      Average stockholders’ equity   $ 2,166,793     $ 2,102,466     $ 2,027,030     $ 2,122,870     $ 2,011,172    
      Less: Average goodwill     (765,822 )     (765,822 )     (765,822 )     (765,822 )     (765,822 )  
      Less: Average intangible assets     (11,819 )     (13,258 )     (17,526 )     (13,216 )     (19,256 )  
      Average tangible common equity   $ 1,389,152     $ 1,323,386     $ 1,243,682     $ 1,343,832     $ 1,226,094    
                             
      Return on average equity, annualized [2]     9.40 %     9.57 %     11.33 %     9.43 %     11.50 %  
      Return on average tangible common equity, annualized [2]     14.93 %     15.51 %     18.82 %     15.19 %     19.24 %  
                             
                             
      [1] Tax effected at respective statutory rates.                      
      [2] Annualized where applicable.                      
                             

    Contact:        
    David A. Brager        
    President and Chief Executive Officer
    (909) 980-4030

    The MIL Network

  • MIL-OSI: Brookfield Real Assets Income Fund Inc. Announces Quarterly Webcast

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Brookfield Public Securities Group LLC (“PSG”) will host a webcast for Brookfield Real Assets Income Fund Inc. (NYSE: RA) (the “Fund”) on Wednesday, October 30, 2024 at 4:30pm ET. PSG will provide an update on the Fund and on general market conditions.

    There will be an opportunity to ask questions about the Fund during the call. Questions may also be submitted ahead of the call by sending an e-mail to ir@brookfieldoaktree.com.

    Registration and Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1690860&tp_key=3c44dc9cca

    Audio only: +1 323-794-2442 or 800-289-0462
    Event Code: 612518

    It is not necessary to dial into the audio conference, unless you are unable to join via the webcast URL.

    A replay will be available via this link shortly following the webcast. A transcript of the webcast will also be available by calling 855-777-8001 or by sending an e-mail request to the Fund at ir@brookfieldoaktree.com.

    Brookfield Real Assets Income Fund Inc is managed by Brookfield Public Securities Group LLC (PSG). The Fund uses its website as a channel of distribution of material information about the Fund. Financial and other material information regarding the Fund is routinely posted on and accessible at https://www.brookfieldoaktree.com/fund/brookfield-real-assets-income-fund-inc

    Contact information:


    Investing involves risk; principal loss is possible.

    A fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Read the prospectus carefully before investing.

    Brookfield Real Assets Income Fund Inc. is distributed by Foreside Fund Services, LLC.

    Quasar Distributors, LLC, provides filing administration for Brookfield Real Assets Income Fund Inc.

    The MIL Network

  • MIL-OSI: Update: Eagle Bancorp, Inc. Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    BETHESDA, Md., Oct. 23, 2024 (GLOBE NEWSWIRE) — Eagle Bancorp, Inc. (“Eagle”, the “Company”) (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the third quarter ended September 30, 2024.

    Eagle reported net income of $21.8 million or $0.72 per share for the third quarter 2024, compared to a net loss of $83.8 million during the second quarter in which the Company recorded a $104.2 million impairment in the value of goodwill. Operating net income1 in the second quarter, adjusted to exclude the impairment charge on goodwill, was $20.4 million or $0.67 per share per diluted share. Pre-provision net revenue (“PPNR”)1 in the third quarter was $35.2 million compared to a pre-provision net loss of $69.8 million for the prior quarter, or $34.4 million of PPNR when adjusted to exclude the impairment charge on goodwill1.

    The $1.4 million increase in operating net income1 over the prior quarter is attributed to a positive variance of $2.2 million related to the change in provision for unfunded commitments; $1.6 million increase in non-interest income; and a $490 thousand increase in net interest income, offset by a $1.3 million increase in operating non-interest expense, adjusted to exclude the impairment charge on goodwill, and a $1.1 million increase in provision for credit losses.

    “We continue to strategically position the Company for future growth as evidenced by actions taken during the quarter with the refinancing of our maturing subordinated debt and the recalibration of our common dividend strategy,” said Susan G. Riel, President and Chief Executive Officer of the Company. “We announced the addition of Evelyn Lee to our senior leadership as our Chief Lending Officer for our commercial lending team. As a 25 year banker in the Washington D.C. market, I am excited about accomplishing our strategic goal of continuing to build out our commercial banker group and pursuing diversification of the loan portfolio and growing our relationship deposits,” added Ms. Riel.

    Eric R. Newell, Chief Financial Officer of the Company said, “Raising senior debt in the third quarter demonstrates the confidence debt investors have in our vision and the future of the Company. Operating performance was stable from last quarter evidenced by operating net income1 increasing $1.4 million to $21.8 million in the third quarter. We continued to build our reserve for credit losses, with coverage as a percentage of total held for investment loans at 1.40% increasing 7 basis points from last quarter. Common equity tier one capital increased to 14.5% and our tangible common equity1 ratio exceeds 10%.”

    Ms. Riel added, “I thank all of our employees for their hard work and their commitment to a culture of respect, diversity and inclusion in both the workplace and the communities we serve.”

    Third Quarter 2024 Highlights

    • The Company repaid $70 million of maturing subordinated debt and issued $77.7 million of 10% unsecured senior debt maturing September 30, 2029.
    • During the quarter, the Company announced a recalibration of the common stock dividend to $0.165 per share from $0.45 per share in the second quarter an action estimated to retain an additional $32 million of capital annually to meet growth and investment objectives.
    • The ACL as a percentage of total loans held for investment was 1.40% at quarter-end; up from 1.33% at the prior quarter-end. Performing office coverage2 was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
    • Nonperforming assets increased $38.2 million to $137.1 million as of September 30, 2024 and were 1.22% of total assets compared to 0.88% as of June 30, 2024. Inflows to non-performing loans in the quarter totaled $45.5 million offset by $9 million of outflows, of which $5 million was the loan held for sale at June 30, 2024 and an increase of other real estate owned of $2.0 million. The inflows were predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
    • Substandard loans declined $17.0 million to $391.3 million and special mention loans increased $57.1 million to $365.0 million at September 30, 2024.
    • Net charge-offs for the third quarter were 0.26% compared to 0.11% for the second quarter 2024. Of the total $5.3 million of net charge offs in the quarter, $3.8 million is associated with a senior living property that has not stabilized.
    • The net interest margin (“NIM”) decreased slightly to 2.37% for the third quarter 2024, compared to 2.40% for the prior quarter, primarily due to continued decline in average non-interest bearing deposits. Net interest income increased $490 thousand from the second quarter to $71.8 million in the third quarter.
    • At quarter-end, the common equity ratio, tangible common equity ratio1, and common equity tier 1 capital (to risk-weighted assets) ratio were 10.86%, 10.86%, and 14.54%, respectively.
    • Total estimated insured deposits at quarter-end were $6.4 billion, or 74.5% of deposits, stable from the second quarter total of 72.5% of deposits.
    • Total on-balance sheet liquidity and available capacity was $4.6 billion at quarter-end compared to $4.0 billion at June 30, 2024.

    Income Statement

    • Net interest income was $71.8 million for the third quarter 2024, compared to $71.4 million for the prior quarter. The increase in net interest income was primarily driven by an increase in the average balances of deposits held with other banks and average loans partially offset by higher average interest-bearing deposits and higher rates paid on those deposits in the third quarter from the prior quarter.
    • Provision for credit losses was $10.1 million for the third quarter 2024, compared to $9.0 million for the prior quarter. The increase in the provision quarter over quarter reflects higher net charge-offs in the third quarter from the prior quarter. Reserve for unfunded commitments was a reversal of $1.6 million due to lower unfunded commitments in our construction portfolio. This compared to a reserve for unfunded commitments in the prior quarter of $0.6 million.
    • Noninterest income was $6.95 million for the third quarter 2024, compared to $5.33 million for the prior quarter. The primary driver for the increase was higher swap fee income.
    • Noninterest expense was $43.6 million for the third quarter 2024, compared to $146.5 million for the prior quarter. The decrease over the comparative quarters was primarily due to a goodwill impairment charge of $104.2 million in the second quarter 2024. When excluding the goodwill impairment charge, the increase quarter over quarter was associated with increased FDIC insurance expense.

    Loans and Funding

    • Total loans were $8.0 billion at September 30, 2024, down 0.4% from the prior quarter-end. The decrease in total loans was driven by a reduction in commercial loans and income producing commercial real estate loans from the prior quarter-end, partially offset by increased fundings of ongoing construction projects for commercial and residential properties.

      At September 30, 2024, income-producing commercial real estate loans secured by office properties other than owner-occupied properties were 10.8% of the total loan portfolio, down from 11.3% at the prior quarter-end.

    • Total deposits at quarter-end were $8.5 billion, up $273.5 million, or 3.3%, from the prior quarter-end. The increase was primarily attributable to an increase in time deposits from the company’s digital acquisition channel. Period end deposits have increased $165 million when compared to prior year comparable period end of September 30, 2023.
    • Other short-term borrowings were $1.2 billion at September 30, 2024, down 25.3% from the prior quarter-end as maturing FHLB borrowings were paid down with increased cash from deposits.

    Asset Quality

    • Allowance for credit losses was 1.40% of total loans held for investment at September 30, 2024, compared to 1.33% at the prior quarter-end. Performing office coverage was 4.55% at quarter-end; as compared to 4.05% at the prior quarter-end.
    • Net charge-offs were $5.3 million for the quarter compared to $2.3 million in the second quarter of 2024.
    • Nonperforming assets were $137.1 million at September 30, 2024.
      • NPAs as a percentage of assets were 1.22% at September 30, 2024, compared to 0.88% at the prior quarter-end. At September 30, 2024, other real estate owned consisted of four properties with an aggregate carrying value of $2.7 million. The increase in NPAs was predominantly associated with $27.3 million in mixed use land loans and $17.9 million in an assisted living facility loan.
      • Loans 30-89 days past due were $56.3 million at September 30, 2024, compared to $8.4 million at the prior quarter-end. Of the total increase, $25 million was brought current subsequent to quarter-end.

    Capital

    • Total shareholders’ equity was $1.2 billion at September 30, 2024, up 4.8% from the prior quarter-end. The increase in shareholders’ equity of $56.0 million was primarily due to increased valuations of available-for-sale securities and an increase in retained earnings.
    • Book value per share and Tangible book value per share3 was $40.61, up $1.86 from the prior quarter-end.

    Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended September 30, 2024 as compared to the three months ended June 30, 2024 and September 30, 2023, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other reports filed with the SEC.

    About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, diversity, equity and inclusion in both its workplace and the communities in which it operates.

    Conference call: Eagle Bancorp will host a conference call to discuss its third quarter 2024 financial results on Thursday, October 24, 2024 at 10:00 a.m. Eastern Time.

    The listen-only webcast can be accessed at:

    • https://edge.media-server.com/mmc/p/79xpxyi2
    • For analysts who wish to participate in the conference call, please register at the following URL:

      https://register.vevent.com/register/BI6cdce3c45a9f49219ea94a6f7c9fa083

    • A replay of the conference call will be available on the Company’s website through November 7, 2024: https://www.eaglebankcorp.com/

    Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “can,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including volatility in interest rates and interest rate policy; the current inflationary environment; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in other periodic and current reports filed with the SEC. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

    Eagle Bancorp, Inc.
    Consolidated Statements of Operations (Unaudited)
    (Dollars in thousands, except per share data)
               
      Three Months Ended
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Interest Income          
    Interest and fees on loans $ 139,836     $ 137,616     $ 132,273  
    Interest and dividends on investment securities   12,578       12,405       13,732  
    Interest on balances with other banks and short-term investments   21,296       19,568       15,067  
    Interest on federal funds sold   103       142       77  
    Total interest income   173,813       169,731       161,149  
    Interest Expense          
    Interest on deposits   81,190       76,846       70,929  
    Interest on customer repurchase agreements   332       330       311  
    Interest on other short-term borrowings   20,448       21,202       18,152  
    Interest on long-term borrowings $             1,038  
    Total interest expense   101,970       98,378       90,430  
    Net Interest Income   71,843       71,353       70,719  
    Provision for Credit Losses   10,094       8,959       5,644  
    Provision (Reversal) for Credit Losses for Unfunded Commitments   (1,593 )     608       (839 )
    Net Interest Income After Provision for Credit Losses   63,342       61,786       65,914  
               
    Noninterest Income          
    Service charges on deposits   1,747       1,653       1,631  
    Gain on sale of loans   20       37       (5 )
    Net gain on sale of investment securities   3       3       5  
    Increase in cash surrender value of bank-owned life insurance   731       709       669  
    Other income   4,450       2,930       4,047  
    Total noninterest income   6,951       5,332       6,347  
    Noninterest Expense          
    Salaries and employee benefits   21,675       21,770       21,549  
    Premises and equipment expenses   2,794       2,894       3,095  
    Marketing and advertising   1,588       1,662       768  
    Data processing   3,435       3,495       3,194  
    Legal, accounting and professional fees   3,433       2,705       2,162  
    FDIC insurance   7,399       5,917       3,342  
    Goodwill impairment         104,168        
    Other expenses   3,290       3,880       3,523  
    Total noninterest expense   43,614       146,491       37,633  
    (Loss) Income Before Income Tax Expense   26,679       (79,373 )     34,628  
    Income Tax Expense   4,864       4,429       7,245  
    Net (Loss) Income $ 21,815     $ (83,802 )   $ 27,383  
               
    (Loss) Earnings Per Common Share          
    Basic $ 0.72     $ (2.78 )   $ 0.91  
    Diluted $ 0.72     $ (2.78 )   $ 0.91  
                           

            

    Eagle Bancorp, Inc.
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands, except per share data)
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Assets          
    Cash and due from banks $ 16,383     $ 10,803     $ 8,625  
    Federal funds sold   9,610       5,802       13,611  
    Interest-bearing deposits with banks and other short-term investments   584,491       526,228       235,819  
    Investment securities available-for-sale at fair value (amortized cost of $1,550,038, $1,613,659, and $1,732,722, respectively, and allowance for credit losses of $17, $17 and $17, respectively)   1,433,006       1,584,435       1,474,945  
    Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,237, $2,012 and $2,010, respectively (fair value of $868,425, $856,275 and $923,313, respectively)   961,925       982,955       1,032,485  
    Federal Reserve and Federal Home Loan Bank stock   37,728       54,274       25,689  
    Loans held for sale         5,000        
    Loans   7,970,269       8,001,739       7,916,391  
    Less: allowance for credit losses   (111,867 )     (106,301 )     (83,332 )
    Loans, net   7,858,402       7,895,438       7,833,059  
    Premises and equipment, net   8,291       8,788       11,216  
    Operating lease right-of-use assets   15,167       16,250       20,151  
    Deferred income taxes   74,381       86,236       98,987  
    Bank-owned life insurance   115,064       114,333       112,234  
    Goodwill and intangible assets, net   21       129       105,239  
    Other real estate owned   2,743       773       1,487  
    Other assets   167,840       174,396       190,667  
    Total Assets $ 11,285,052     $ 11,465,840     $ 11,164,214  
    Liabilities and Shareholders’ Equity          
    Liabilities          
    Deposits:          
    Noninterest-bearing demand $ 1,609,823     $ 1,693,955     $ 2,072,665  
    Interest-bearing transaction   903,300       1,123,980       932,779  
    Savings and money market   3,316,819       3,165,314       3,129,773  
    Time deposits   2,710,908       2,284,099       2,241,089  
    Total deposits   8,540,850       8,267,348       8,376,306  
    Customer repurchase agreements   32,040       39,220       25,689  
    Other short-term borrowings   1,240,000       1,659,979       1,300,001  
    Long-term borrowings   75,812             69,887  
    Operating lease liabilities   18,755       20,016       24,422  
    Reserve for unfunded commitments   5,060       6,653       6,183  
    Other liabilities   147,111       139,348       145,842  
    Total Liabilities   10,059,628       10,132,564       9,948,330  
    Shareholders’ Equity          
    Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,173,200 30,180,482, and 30,185,732, respectively   298       297       296  
    Additional paid-in capital   382,284       380,142       372,394  
    Retained earnings   967,019       949,863       1,054,699  
    Accumulated other comprehensive loss   (124,177 )     (160,843 )     (211,505 )
    Total Shareholders’ Equity   1,225,424       1,169,459       1,215,884  
    Total Liabilities and Shareholders’ Equity $ 11,285,052     $ 11,302,023     $ 11,164,214  
                           

     

    Loan Mix and Asset Quality
    (Dollars in thousands)
     
      September 30,   June 30,   September 30,
        2024       2024       2023  
      Amount %   Amount %   Amount %
    Loan Balances – Period End:                
    Commercial $ 1,154,349     14 %   $ 1,238,261     15 %   $ 1,418,760     18 %
    PPP loans   348     %     407     %     588     %
    Income producing – commercial real estate   4,155,120     52 %     4,217,525     53 %     4,147,301     52 %
    Owner occupied – commercial real estate   1,276,240     16 %     1,263,714     16 %     1,182,959     15 %
    Real estate mortgage – residential   57,223     1 %     61,338     1 %     76,511     1 %
    Construction – commercial and residential   1,174,591     15 %     1,063,764     13 %     904,282     11 %
    Construction – C&I (owner occupied)   100,662     1 %     99,526     1 %     129,616     2 %
    Home equity   51,567     1 %     52,773     1 %     53,917     1 %
    Other consumer   169     %     4,431     %     2,457     %
    Total loans $ 7,970,269     100 %   $ 8,001,739     100 %   $ 7,916,391     100 %
                                             
      Three Months Ended or As Of
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Asset Quality:          
    Net charge-offs $ 5,303     $ 2,285     $ 340  
    Nonperforming loans $ 134,371     $ 98,169     $ 70,148  
    Other real estate owned $ 2,743     $ 773     $ 1,757  
    Nonperforming assets $ 137,114     $ 98,942     $ 71,905  
    Special mention $ 364,983     $ 307,906     $ 158,182  
    Substandard $ 391,301     $ 408,311     $ 219,001  
                           
    Eagle Bancorp, Inc.
    Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
    (Dollars in thousands)
                           
      Three Months Ended
      September 30, 2024   June 30, 2024
      Average Balance   Interest   Average
    Yield/Rate
      Average Balance   Interest   Average
    Yield/Rate
    ASSETS                      
    Interest earning assets:                      
    Interest-bearing deposits with other banks and other short-term investments $ 1,577,464     $ 21,296       5.37 %   $ 1,455,007     $ 19,568       5.41 %
    Loans held for sale (1)   4,936       1       0.08 %     8,045       100       5.00 %
    Loans (1) (2) $ 8,026,524       139,835       6.93 %     8,003,206       137,516       6.91 %
    Investment securities available-for-sale (2)   1,479,598       7,336       1.97 %     1,478,856       7,048       1.92 %
    Investment securities held-to-maturity (2)   974,366       5,242       2.14 %     995,274       5,357       2.16 %
    Federal funds sold   10,003       103       4.10 %     13,058       142       4.37 %
    Total interest earning assets   12,072,891     $ 173,813       5.73 %     11,953,446     $ 169,731       5.71 %
    Total noninterest earning assets   397,006               510,725          
    Less: allowance for credit losses   (108,998 )             (102,671 )        
    Total noninterest earning assets   288,008               408,054          
    TOTAL ASSETS $ 12,360,899             $ 12,361,500          
                           
    LIABILITIES AND SHAREHOLDERS’ EQUITY                    
    Interest bearing liabilities:                      
    Interest-bearing transaction $ 1,656,676     $ 14,596       3.51 %   $ 1,636,795     $ 16,100       3.96 %
    Savings and money market   3,254,128       34,896       4.27 %     3,321,001       33,451       4.05 %
    Time deposits   2,517,944       31,698       5.01 %     2,215,693       27,295       4.95 %
    Total interest bearing deposits   7,428,748       81,190       4.35 %     7,173,489       76,846       4.31 %
    Customer repurchase agreements   38,045       332       3.47 %     38,599       330       3.44 %
    Other short-term borrowings   1,615,867       20,448       5.03 %     1,682,684       21,202       5.07 %
    Long-term borrowings   824             %                 %
    Total interest bearing liabilities   9,083,484     $ 101,970       4.47 %     8,894,772     $ 98,378       4.45 %
    Noninterest bearing liabilities:                      
    Noninterest bearing demand   1,915,666               2,051,777          
    Other liabilities   160,272               151,324          
    Total noninterest bearing liabilities   2,075,938               2,203,101          
    Shareholders’ equity   1,201,477               1,263,627          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 12,360,899             $ 12,361,500          
    Net interest income     $ 71,843             $ 71,353      
    Net interest spread           1.26 %             1.26 %
    Net interest margin           2.37 %             2.40 %
    Cost of funds           3.69 %             3.61 %

    (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.8 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
    (2) Interest and fees on loans and investments exclude tax equivalent adjustments.

    Eagle Bancorp, Inc.
    Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
    (Dollars in thousands)
                           
      Three Months Ended September 30,
        2024       2023  
      Average Balance   Interest   Average
    Yield/Rate
      Average Balance   Interest   Average
    Yield/Rate
    ASSETS                      
    Interest earning assets:                      
    Interest bearing deposits with other banks and other short-term investments $ 1,577,464     $ 21,296       5.37 %   $ 1,127,451     $ 15,067       5.30 %
    Loans held for sale (1)   4,936       1       0.08 %                 %
    Loans (1) (2)   8,026,524       139,835       6.93 %     7,795,144       132,273       6.73 %
    Investment securities available-for-sale (2)   1,479,598       7,336       1.97 %     1,554,348       8,126       2.07 %
    Investment securities held-to-maturity (2)   974,366       5,242       2.14 %     1,047,515       5,606       2.12 %
    Federal funds sold   10,003       103       4.10 %     7,728       77       3.95 %
    Total interest earning assets   12,072,891     $ 173,813       5.73 %     11,532,186     $ 161,149       5.54 %
    Total noninterest earning assets   397,006               489,683          
    Less: allowance for credit losses   (108,998 )             (78,964 )        
    Total noninterest earning assets   288,008               410,719          
    TOTAL ASSETS $ 12,360,899             $ 11,942,905          
                           
    LIABILITIES AND SHAREHOLDERS’ EQUITY                    
    Interest bearing liabilities:                      
    Interest bearing transaction $ 1,656,676     $ 14,596       3.51 %   $ 1,421,522     $ 12,785       3.57 %
    Savings and money market   3,254,128       34,896       4.27 %     3,113,755       32,855       4.19 %
    Time deposits   2,517,944       31,698       5.01 %     2,162,582       25,289       4.64 %
    Total interest bearing deposits   7,428,748       81,190       4.35 %     6,697,859       70,929       4.20 %
    Customer repurchase agreements   38,045       332       3.47 %     36,082       311       3.42 %
    Other short-term borrowings   1,615,867       20,448       5.03 %     1,610,097       19,190       4.73 %
    Long-term borrowings   824             %                 %
    Total interest bearing liabilities   9,083,484     $ 101,970       4.47 %     8,344,038     $ 90,430       4.30 %
    Noninterest bearing liabilities:                      
    Noninterest bearing demand   1,915,666               2,248,782          
    Other liabilities   160,272               114,923          
    Total noninterest bearing liabilities   2,075,938               2,363,705          
    Shareholders’ equity   1,201,477               1,235,162          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 12,360,899             $ 11,942,905          
    Net interest income     $ 71,843             $ 70,719      
    Net interest spread           1.26 %             1.24 %
    Net interest margin           2.37 %             2.43 %
    Cost of funds           3.69 %             3.39 %

    (1) Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.9 million and $4.1 million for the three months ended September 30, 2024 and 2023, respectively.
    (2) Interest and fees on loans and investments exclude tax equivalent adjustments.

    Eagle Bancorp, Inc.
    Statements of Operations and Highlights Quarterly Trends (Unaudited)
    (Dollars in thousands, except per share data)
                                   
      Three Months Ended
      September 30,   June 30,   March 31,   December 31,   September 30,   June 30,   March 31,   December 31,
    Income Statements:   2024       2024       2024       2023       2023       2023       2023       2022  
    Total interest income $ 173,813     $ 169,731     $ 175,602     $ 167,421     $ 161,149     $ 156,510     $ 140,247     $ 129,130  
    Total interest expense   101,970       98,378       100,904       94,429       90,430       84,699       65,223       43,530  
    Net interest income   71,843       71,353       74,698       72,992       70,719       71,811       75,024       85,600  
    Provision (reversal) for credit losses   10,094       8,959       35,175       14,490       5,644       5,238       6,164       (464 )
    Provision (reversal) for credit losses for unfunded commitments   (1,593 )     608       456       (594 )     (839 )     318       848       161  
    Net interest income after provision for (reversal of) credit losses   63,342       61,786       39,067       59,096       65,914       66,255       68,012       85,903  
    Noninterest income before investment gain (loss)   6,948       5,329       3,585       2,891       6,342       8,593       3,721       5,326  
    Net gain (loss) on sale of investment securities   3       3       4       3       5       2       (21 )     3  
    Total noninterest income   6,951       5,332       3,589       2,894       6,347       8,595       3,700       5,329  
    Salaries and employee benefits   21,675       21,770       21,726       18,416       21,549       21,957       24,174       23,691  
    Premises and equipment expenses   2,794       2,894       3,059       2,967       3,095       3,227       3,317       3,292  
    Marketing and advertising   1,588       1,662       859       1,071       768       884       636       1,290  
    Goodwill impairment         104,168                                      
    Other expenses   17,557       15,997       14,353       14,644       12,221       11,910       12,457       10,645  
    Total noninterest expense   43,614       146,491       39,997       37,098       37,633       37,978       40,584       38,918  
    (Loss) income before income tax expense   26,679       (79,373 )     2,659       24,892       34,628       36,872       31,128       52,314  
    Income tax expense   4,864       4,429       2,997       4,667       7,245       8,180       6,894       10,121  
    Net (loss) income $ 21,815     $ (83,802 )   $ (338 )   $ 20,225     $ 27,383     $ 28,692     $ 24,234     $ 42,193  
    Per Share Data:                              
    (Loss) earnings per weighted average common share, basic $ 0.72     $ (2.78 )   $ (0.01 )   $ 0.68     $ 0.91     $ 0.94     $ 0.78     $ 1.32  
    (Loss) earnings per weighted average common share, diluted $ 0.72     $ (2.78 )   $ (0.01 )   $ 0.67     $ 0.91     $ 0.94     $ 0.78     $ 1.32  
    Weighted average common shares outstanding, basic   30,173,852       30,185,609       30,068,173       29,925,557       29,910,218       30,454,766       31,109,267       31,819,631  
    Weighted average common shares outstanding, diluted   30,241,699       30,185,609       30,068,173       29,966,962       29,944,692       30,505,468       31,180,346       31,898,619  
    Actual shares outstanding at period end   30,173,200       30,180,482       30,185,732       29,925,612       29,917,982       29,912,082       31,111,647       31,346,903  
    Book value per common share at period end $ 40.61     $ 38.75     $ 41.72     $ 42.58     $ 40.64     $ 40.78     $ 39.92     $ 39.18  
    Tangible book value per common share at period end (1) $ 40.61     $ 38.74     $ 38.26     $ 39.08     $ 37.12     $ 37.29     $ 36.57     $ 35.86  
    Dividend per common share $ 0.165     $ 0.45     $ 0.45     $ 0.45     $ 0.45     $ 0.45     $ 0.45     $ 0.45  
    Performance Ratios (annualized):                              
    Return on average assets   0.70 %     (2.73 )%     (0.01 )%     0.65 %     0.91 %     0.96 %     0.86 %     1.49 %
    Return on average common equity   7.22 %     (26.67 )%     (0.11 )%     6.48 %     8.80 %     9.24 %     7.92 %     13.57 %
    Return on average tangible common equity (1)   7.22 %     (28.96 )%     (0.11 )%     7.08 %     9.61 %     10.08 %     8.65 %     14.82 %
    Net interest margin   2.37 %     2.40 %     2.43 %     2.45 %     2.43 %     2.49 %     2.77 %     3.14 %
    Efficiency ratio (2)   55.4 %     191.0 %     51.1 %     48.9 %     48.8 %     47.2 %     51.6 %     42.8 %
    Other Ratios:                              
    Allowance for credit losses to total loans (3)   1.40 %     1.33 %     1.25 %     1.08 %     1.05 %     1.00 %     1.01 %     0.97 %
    Allowance for credit losses to total nonperforming loans   83 %     110 %     109 %     131 %     119 %     268 %     1,160 %     1,151 %
    Nonperforming assets to total assets   1.22 %     0.88 %     0.79 %     0.57 %     0.64 %     0.28 %     0.08 %     0.08 %
    Net charge-offs (recoveries) (annualized) to average total loans (3)   0.26 %     0.11 %     1.07 %     0.60 %     0.02 %     0.29 %     0.05 %     0.05 %
    Tier 1 capital (to average assets)   10.94 %     10.58 %     10.26 %     10.73 %     10.96 %     10.84 %     11.42 %     11.63 %
    Total capital (to risk weighted assets)   15.74 %     15.07 %     14.87 %     14.79 %     14.54 %     14.51 %     14.74 %     14.94 %
    Common equity tier 1 capital (to risk weighted assets)   14.54 %     13.92 %     13.80 %     13.90 %     13.68 %     13.55 %     13.75 %     14.03 %
    Tangible common equity ratio (1)   10.86 %     10.35 %     10.03 %     10.12 %     10.04 %     10.21 %     10.36 %     10.18 %
    Average Balances (in thousands):                              
    Total assets $ 12,360,899     $ 12,361,500     $ 12,784,470     $ 12,283,303     $ 11,942,905     $ 11,960,111     $ 11,426,056     $ 11,255,956  
    Total earning assets $ 12,072,891     $ 11,953,446     $ 12,365,497     $ 11,837,722     $ 11,532,186     $ 11,546,050     $ 11,004,817     $ 10,829,703  
    Total loans (3) $ 8,026,524     $ 8,003,206     $ 7,988,941     $ 7,963,074     $ 7,795,144     $ 7,790,555     $ 7,712,023     $ 7,379,198  
    Total deposits $ 9,344,414     $ 9,225,266     $ 9,501,661     $ 9,471,369     $ 8,946,641     $ 8,514,938     $ 8,734,125     $ 9,524,139  
    Total borrowings $ 1,654,736     $ 1,721,283     $ 1,832,947     $ 1,401,917     $ 1,646,179     $ 2,102,507     $ 1,359,463     $ 411,060  
    Total shareholders’ equity $ 1,201,477     $ 1,263,627     $ 1,289,656     $ 1,238,763     $ 1,235,162     $ 1,245,647     $ 1,240,978     $ 1,233,705  

    (1) A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
    (2) Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
    (3) Excludes loans held for sale.

    GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
    (dollars in thousands, except per share data)
               
      September 30,   June 30,   September 30,
        2024       2024       2023  
    Tangible common equity          
    Common shareholders’ equity $ 1,225,424     $ 1,169,459     $ 1,215,884  
    Less: Intangible assets   (21 )     (129 )     (105,239 )
    Tangible common equity $ 1,225,403     $ 1,169,330     $ 1,110,645  
               
    Tangible common equity ratio          
    Total assets $ 11,285,052     $ 11,302,023     $ 11,164,214  
    Less: Intangible assets   (21 )     (129 )     (105,239 )
    Tangible assets $ 11,285,031     $ 11,301,894     $ 11,058,975  
               
    Tangible common equity ratio   10.86 %     10.35 %     10.04 %
               
    Per share calculations          
    Book value per common share $ 40.61     $ 38.75     $ 40.64  
    Less: Intangible book value per common share         (0.01 )     (3.52 )
    Tangible book value per common share $ 40.61     $ 38.74     $ 37.12  
               
    Shares outstanding at period end   30,173,200       30,180,482       29,917,982  
                           
        Three Months Ended
        September 30,   June 30,   September 30,
          2024       2024       2023  
    Average tangible common equity            
    Average common shareholders’ equity   $ 1,201,477     $ 1,263,627     $ 1,235,162  
    Less: Average intangible assets     (24 )     (99,827 )     (104,639 )
    Average tangible common equity   $ 1,201,453     $ 1,163,800     $ 1,130,523  
                 
    Return on average tangible common equity            
    Net (loss) income   $ 21,815     $ (83,802 )   $ 27,383  
    Return on average tangible common equity     7.22 %   (28.96)%     9.61 %
                 
    Net (loss) income   $ 21,815     $ (83,802 )   $ 27,383  
    Add back of goodwill impairment   $       104,168        
    Operating net (loss) income (Non-GAAP)     21,815       20,366       27,383  
    Operating Return on average tangible common equity (Non-GAAP)     7.22 %     7.04 %     9.61 %
                 
    Efficiency ratio            
    Net interest income   $ 71,843     $ 71,353     $ 70,719  
    Noninterest income     6,951       5,332       6,347  
    Operating revenue   $ 78,794     $ 76,685     $ 77,066  
    Noninterest expense   $ 43,614     $ 146,491     $ 37,633  
    Add back of goodwill impairment           (104,168 )      
    Operating Noninterest expense (Non-GAAP)     43,614       42,323       37,633  
                 
    Efficiency ratio     55.35 %     191.03 %     48.83 %
    Operating Efficiency ratio (Non-GAAP)     55.35 %     55.19 %     48.83 %
                 
    Pre-provision net revenue            
    Net interest income   $ 71,843     $ 71,353     $ 70,719  
    Noninterest income     6,951       5,332       6,347  
    Less: Noninterest expense     (43,614 )     (146,491 )     (37,633 )
    Pre-provision net revenue   $ 35,180     $ (69,806 )   $ 39,433  
                 
    Pre-provision net revenue   $ 35,180     $ (69,806 )   $ 39,433  
    Add back of goodwill impairment   $     $ 104,168     $  
    Operating Pre-provision net revenue (Non-GAAP)   $ 35,180     $ 34,362     $ 39,433  
                 

    Tangible common equity, tangible common equity to tangible assets (the “tangible common equity ratio”), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders’ equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders’ equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

    The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

    Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

        Three Months Ended
        September 30,   June 30,   September 30,
          2024       2024       2023  
    Net (loss) income   $ 21,815     $ (83,802 )   $ 27,383  
    Add back of goodwill impairment           104,168        
    Operating Net (loss) income (Non-GAAP)   $ 21,815     $ 20,366     $ 27,383  
                 
    (Loss) earnings per share (diluted)4   $ 0.72     $ (2.78 )   $ 0.91  
    Add back of goodwill impairment per share (diluted)           3.45        
    Operating earnings (loss) per share (diluted) (Non-GAAP)   $ 0.72     $ 0.67     $ 0.91  
                 

    Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management’s evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company’s goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company’s performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

    _______________
    1
    A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
    Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.
    3 A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measure that accompany this document.
    4 For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.

    EAGLE BANCORP, INC.
    CONTACT:
    Eric R. Newell
    240.497.1796

    For the September 30, 2024 Earnings Presentation, click http://ml.globenewswire.com/Resource/Download/d55e221f-6ef9-45bd-8784-011bf19dce58

    The MIL Network

  • MIL-OSI USA: Hold DOJ Accountable for Failure to Prosecute Noncitizen Voter Registration

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    It should be obvious to everyone — even Democrats — that we should prevent illegal immigrants from voting. Unfortunately, most Democrats in Congress do not agree. I was happy to cosponsor the SAVE Act in the Senate. This legislation aimed to secure our elections by requiring proof of citizenship to vote. It passed in the House, but not the Senate.

    On October 2, I joined Republican colleagues in a letter to U.S. Attorney General Merrick Garland exposing the Department of Justice’s (DOJ) failure to prevent noncitizens from registering to vote in America’s federal elections and its refusal to prosecute those who have done so. 

    We need more information about the incidence of noncitizens registering to vote, and steps that the DOJ is taking to deal with the issue and secure U.S. elections.

    In recent weeks, I have written two op-eds highlighting my concerns with election integrity. I urge you to read both.

    The Daily Caller: FBI Ignoring Real Threats To Election Integrity

    The Federalist: Democrat-Controlled States Refuse To Clean Voter Rolls And Fix Election Problems

    Under the Biden-Harris administration, more than 500,000 unaccompanied migrant children have crossed the southwest border without a parent or guardian to provide care.

    Last month, I joined a letter to President Biden and Vice President Harris calling out abuses in their Unaccompanied Migrant Children Program, namely the Department of Health and Human Services (HHS)’s cover-up of the crisis. HHS has failed to comply with two out of three Department of Homeland Security subpoenas and other information requests issued amid its investigation into more than 100 suspicious sponsors.

    The Biden-Harris administration limited background checks for sponsors of unaccompanied children, cut back on familial DNA testing at the border, and decreased information sharing with law enforcement.

    Cartel trafficking activity surged an estimated 2,500% from the Trump administration to the middle of the Biden-Harris term in 2022.  

    I joined another letter demanding Biden and Harris collect DNA samples from every immigrant the Department of Homeland Security (DHS) encounters, per the DNA Fingerprint Act of 2005. DHS missed three separate opportunities to gather DNA from the illegal immigrant who murdered Rachel Morin, a Maryland mother of five.

    MILTON: The Milton Area Chamber of Commerce hosted a town hall at the Milton House Museum. Before the event, I took a fascinating tour of Wisconsin’s only certified Underground Railroad site which is designated a National Historic Landmark.

    REESEVILLE:  Caine Warehousing hosted a town hall at their Dodge County campus. It was an honor to meet the three generations of Caines who run this successful family business. 

    WATERTOWN:  American Disposal and Lueck Recycling, another family run business, hosted a town hall at their facility. People are very concerned about open borders, the economy, and parental rights. 

    WATERTOWN: I always look forward to my visits to Maranatha Baptist University. I held a meeting with campus leadership and then answered questions from students, staff, and community members.  

    WHITEWATER: I enjoyed meeting with students at the University of Wisconsin Whitewater. When asked by a campus reporter about my main message for young people, I responded “jealously guard your freedom.” 

    MIL OSI USA News

  • MIL-OSI USA: Governor Shapiro, DCED Secretary Siger to Announce Major Economic Development Investment

    Source: US State of Pennsylvania

    October 24, 2024Lancaster County, PA

    ADVISORY – Governor Shapiro, DCED Secretary Siger to Announce Major Economic Development Investment

    Governor Josh Shapiro and Department of Community & Economic Development Secretary Rick Siger will announce a major economic development investment – the largest Commonwealth-supported investment in Lancaster County history.

    WHO:
    Governor Josh Shapiro
    DCED Secretary Rick Siger
    Major Business Leaders

    WHEN:
    Thursday, October 24, 2024 at 1:00 PM
    Press conference will begin at approximately 1:20 PM

    WHERE:
    Please RSVP to receive the address and arrival instructions.

    LIVE STREAM:
    pacast.com/live/gov
    governor.pa.gov/live/

    RSVP:
    Press who are interested in attending must RSVP with the names and phone numbers for each member of their team to ra-gvgovpress@pa.gov.

    MIL OSI USA News

  • MIL-OSI Banking: Charting the course: prudential regulation and supervision for smooth sailing

    Source: Bank for International Settlements

    Introduction

    Good afternoon, and thank you for inviting me to speak at this conference today.

    It is a privilege to be speaking today as the Chair of the Basel Committee, following my appointment by the Group of Governors and Heads of Supervision (GHOS) in May of this year.1 This is a position that has been previously enjoyed by only 11 people during the Committee’s 50 years. As a Reserve Officer in the Royal Swedish Navy, I would liken this honour as akin to taking the helm of a well steered vessel by seasoned captains. 

    As you know, the work of the Basel Committee since the Great Financial Crisis (GFC) – under the leadership of Nout Wellink, Stefan Ingves and, more recently, Pablo Hernández de Cos – has fundamentally reshaped the regulatory landscape for internationally active banks. The Basel Framework is the cornerstone of the international community’s response to the GFC. Since 2011, banks’ Common Equity Tier 1 (CET1) risk-based capital ratio has increased by over 70% and now stands at around 13.8%.2 Global banking system leverage has almost halved during this period, with an average Tier 1 leverage ratio of just over 6%.3 And banks’ holdings of high-quality liquid assets have more than doubled to over €12.5 trillion, with a corresponding Liquidity Coverage Ratio of over 135%.4

    The Basel III reforms have brought tangible benefits. In sailing, no matter how skilled you are, you can’t control the weather. However, you can prepare your boat with safety protocols and solid equipment. The Committee helps ensure that the global banking system is prepared for the unexpected. There is now an extensive empirical literature that suggests that the Basel III reforms have had an unambiguously positive net macroeconomic effect.5 The reforms have clearly strengthened bank resilience at both the bank and system-wide level, which in turn will help reduce the likelihood and impact of future banking crises. At the same time, banks, particularly strongly capitalised ones, have continued to meet the demand for lending from households and businesses.6

    Just as important as the effects of Basel III is the process by which the reforms were finalised. The Committee consulted extensively when developing Basel III – we do not operate in a vacuum or opaquely. It published no fewer than 10 consultation papers, which collectively spanned a consultation period of almost three years. It engaged extensively with a wide range of external stakeholders. Each consultation was accompanied by a rigorous quantitative impact study, which was supplemented by a half-yearly public Basel III monitoring exercise. So it is reassuring and appropriate to find that a recent academic study concluded that the Committee’s consultation approach is “one of the most procedurally sophisticated” processes among policymaking bodies.7 Moreover, member jurisdictions have undertaken their own rigorous domestic rule-making processes to transpose these standards.

    But the work to fix the banking system fault lines exposed by the GFC is not done. We need to lock in the financial stability benefits of implementing the outstanding Basel III standards in full and consistently, and as soon as possible. I take comfort in the recent unanimous reaffirmation by the GHOS to achieve such an outcome.8 The Committee has been actively monitoring and assessing the full and consistent implementation of Basel III and will continue to do so.

    As this is my maiden speech as Committee Chair, I will outline some high-level principles that I will be relying upon to help guide how I view the work of the Committee. I will also offer a few personal reflections on some topical issues. As a keen sailor, I should apologise in advance for my continued use of maritime language!

    Principle 1: Sail forward but always glance back

    My starting point is that we cannot afford to ignore, or forget, the lessons of history. This time is not different. There have been no fewer than 150 systemic banking crises since 1970.9 Just last year, we saw the most significant system-wide banking stress since the GFC, including the distress of five banks with total assets exceeding one trillion US dollars. While each banking crisis may have had its unique characteristics, the common thread throughout history is that we simply cannot predict when or from where the next crisis will emerge. We therefore need to ensure robust and durable resilience for the global banking system to withstand a range of potential shocks.    

    Banking crises have a profound impact on our economies and social welfare. In my home country of Sweden, the 1990s banking crisis and the GFC resulted in output losses of over 30% and 25%, respectively.10 These are not just numbers, but reflect economic hardships endured by citizens, including job losses and foregone growth potential. We must always remember this stark reality when regulating and supervising banks.

    And yet, despite the painful effects of banking crises, history suggests that the lessons from such events are often forgotten as part of a “regulatory cycle”.11 Memories fade over time, and a view takes hold that this time really is different. As the cycle turns, policymakers, supervisors and risk managers at banks sometimes become complacent and give in to pressures to dilute regulatory safeguards. Such a journey never ends well: it is only a matter of time until stormy waters reveal banks’ stress points and fractures.

    This is not a course that I intend to chart. The reality is that a banking system built upon leverage and maturity transformation will inevitably face episodes of distress. Misconduct, governance failures and imprudent risk management practices further increase the likelihood and impact of crises.

    To be clear, the first and most important source of resilience comes from banks’ own risk management practices and governance arrangements. The boards and management of banks should be the first port of call in managing and overseeing risks; they cannot outsource these functions to supervisors. Yet history suggests that some banks’ boards and senior management occasionally fail in their most elementary responsibilities. So it is critical that bankers, policymakers and supervisors do not forget the lessons from the past and take a medium-term perspective. Consider, for example, the recent growth in the use of so-called synthetic risk transfers (SRTs) by banks across several regions.12 Such transactions are intended to reduce banks’ capital requirements by “transferring” the risks associated with some exposures to a third party – often a non-bank financial intermediary (NBFI) – which provides credit protection or insurance. The Basel Framework allows for such transactions to take place subject to meeting certain criteria, and they may in instances be an effective risk management technique. However, I personally believe that we should not lose sight of the bigger picture and lessons from the GFC. In particular, we should ask ourselves: are there system-wide risks that warrant closer attention? For example, what are the risks if NBFI investors of SRTs are in turn borrowing from other banks? Is there sufficient transparency about the interconnections and potential spillover of risks between banks and NBFIs in these – and other – markets? A natural starting point to help answer these questions is to remind ourselves of the lessons from the GFC. 

    Just like a sailor needs steady winds, strong sails and safety gear for times of stress to ensure a smooth voyage, a bank requires strong prudential regulation and supervision to ensure stability. And its board and senior management should display the leadership and competency of a veteran captain. In addition, it is critical that the Committee remains vigilant and pursues a forward-looking approach to assessing risks and vulnerabilities to help reduce the risk of the global banking system being blown off course into financial storms.

    The Committee’s work should also continue to be anchored by rigorous empirical analysis and not succumb to short-term or specific interests of some external stakeholders. And the GHOS agreed to mark a clear end to the Basel III policy agenda in 2020 when it noted that any further potential adjustments to Basel III “will be limited in nature and consistent with the Committee’s evaluation work”.13 This is why the Committee is pursuing analytical work based on empirical evidence to assess whether specific features of the Basel Framework performed as intended during the 2023 banking turmoil, such as liquidity risk and interest rate risk in the banking book.14 On this note, we recently provided a progress report to the G20 which outlines the progress we have made in the area of liquidity risk.15 This is a good start, but there is still more work to be done. Structural changes affecting the financial system, such as the ongoing digitalisation of finance and role of social media, require policymakers and supervisors to remain alert and be open-minded as to whether any additional regulatory and supervisory measures are needed.

    Principle 2: All hands on deck

    My second guiding principle is the need for global and transparent engagement with a wide range of stakeholders.

    Financial stability is a global public good that requires cross-border cooperation. An open global financial system requires global prudential standards. Failure on this count could result in regulatory fragmentation, regulatory arbitrage and a potential “race to the bottom” leading to a dilution of banks’ resilience.16

    So I will strive to build on the strong track record of Committee members to cooperate and collaborate in tackling cross-border financial stability challenges and shoring up the resilience of the global banking system. We have witnessed the benefits of global cooperation throughout the Committee’s history, including with the Concordat, Basel I, II and III, and the Basel Core Principles, and of course more recently during the Covid-19 period and last year’s banking turmoil. And in a world facing major geopolitical uncertainty, and where the merits of multilateralism are sometimes questioned, it is even more critical for the Committee to remind all stakeholders of the necessity of cross-border cooperation.

    The need for cooperation is not just among Committee members themselves. Given the increasingly cross-sectoral and cross-cutting nature of developments affecting the global financial system – such as the ongoing digitalisation of finance, the growing role of NBFIs, the increasing nodes of interconnections among banks, central counterparties and NBFIs, or climate-related financial risks – the Committee will need to increasingly liaise with a wide range of authorities. This includes ongoing cooperation with central banks and supervisory authorities outside the Basel Committee’s membership, but also financial sector authorities in charge of overseeing conduct, resolution, deposit insurance, payment systems, securities and other NBFIs. In fact, for certain topics there may also be a need to go beyond the financial sector sphere and liaise with authorities with responsibility for accounting, competition, data privacy and security, just to mention a few.

    To this end, it is critical that the Committee continues to seek the views of a wide range of stakeholders, including academics, civil society, legislators, market participants and the general public. Even if we may have different views on specific elements of the Committee’s work, these engagements unquestionably enhance the Committee’s outputs by bringing in different perspectives.

    Principle 3: Keep your heading steady

    My third principle is the importance for the Committee to act as a lighthouse, cutting through the fog and stormy conditions.

    Bank regulation and financial supervision are an anchor to help prevent banks from drifting into risky waters that could endanger the entire economy. A resilient and healthy banking system is one that can best support households and businesses through the robust provision of key financial services across the financial cycle.17

    Let me give you an example from my home country. Before the pandemic, the initial set of Basel III standards were fully implemented in Sweden. These reforms significantly increased Swedish banks’ resilience to shocks. In addition, the Swedish authorities activated the Basel III countercyclical buffer and set it at 2.5%, with the aim to further enhance Swedish banks’ resilience. Doing so allowed us to release this buffer in response to the Covid-19 crisis, which in turn helped Swedish banks to absorb shocks and to lend to creditworthy households and companies throughout the pandemic. The releasability of this buffer facilitated its drawdown by banks in a way that made it genuinely usable.

    It may be tempting for some to argue that regulations should be watered down and that supervision should be less intrusive, in order to promote lending to specific sectors or to “unlock” economic growth. But, as with other areas of economic policymaking, any perceived short-term gains are usually more than offset by longer-term pain. Shaving off a few basis points of capital will not unlock a wave of new lending, but it will weaken your resilience. More generally, being well capitalised is a competitive advantage for banks and their shareholders, as it ensures that they can continue to grow and invest in profitable projects across the financial cycle. The Committee’s work should therefore continue to be centred around its mandate.

    To be clear, this is entirely compatible with stable and healthy earnings that are fundamental to banking and financial stability. So it is reassuring that the sample of banks for which we regularly collect data – many of which are represented here today – have over time been able to both meet new regulatory requirements, make healthy profits and pay out significant dividends. For example, in 2011 banks faced a CET1 capital shortfall from Basel III of about €485 billion. Since then, their profits have exceeded €4 trillion and banks have paid out over €1.3 trillion of common share dividends, while at the same time building capital and liquidity buffers to meet the new requirements.18

    More generally, the Committee will continue to focus its work on those prudential areas that require a global and coordinated response. Its outputs will continue to take the form of global minimum standards to provide a common financial stability baseline across jurisdictions. Jurisdictions are, of course, free to go beyond this baseline if the size and structure of their banking system and the associated risks warrant additional measures. Such measures only reinforce global financial stability. Just as importantly, we will continue to promote strong supervision, including by sharing supervisory experiences and, when needed, developing additional guidance to assist supervisors worldwide.

    In that regard, I am sure all of us can agree that it is in our collective best interest to have global standards. We may have different opinions about Basel III, but I think we can all agree that having a globally consistent level playing field is preferable to a patchwork of disparate regulations. A global compromise – however imperfect it may appear to some – is preferable to a free-for-all framework. Internationally active banks then have a common minimum regulatory baseline which they can manage their business around. Supervisors are able to better assess the relative resilience of their banks across jurisdictions. The scope for regulatory arbitrage is reduced. Level playing fields are enhanced. Now compare this with a fragmented bank regulatory world, where banks would have to comply with completely different rules across borders with no common minimum baseline. Such a scenario could also trigger a race to the bottom across jurisdictions, resulting in a frail regulatory framework that would threaten global financial stability and banks’ own viability. We would all be worse off in such a situation. It is therefore in your own interest to avoid such a scenario and to promote a common and consistent implementation of Basel III.

    Finally, we should keep the fundamentals of bank regulation and supervision in mind. While it may be tempting to focus on the “newest” trends affecting the banking system, we should not lose sight of the more traditional risks, such as credit risk and liquidity risk. Regarding the former, despite repeated headwinds over the past few years, the feared wave of financial problems for households and corporate defaults has yet to appear. Yet I am personally concerned about some stakeholders’ seeming complacency in assuming that the worst is over and that the seas are calm. It is a universal truth that a calm sea does not make a clever sailor.

    With continued uncertainty about interest rate trajectories and the economic outlook, hidden currents and unseen reefs could still pose a challenge. Banks and supervisors must remain vigilant to such risks.

    Principle 4: Sailing to simplicity

    My last principle is to ensure that the Committee continues to adequately balance risk sensitivity with simplicity and comparability. Finance and banking are complex activities, so there is perhaps an understandable temptation to match that complexity in the regulatory framework.

    Yet one does not always fight fire with fire. Undue complexity in prudential regulation can undermine the ability for a bank’s board and senior management to fully understand the risk profile of their bank. It can also impede supervisors’ ability to effectively assess the resilience of banks and create opaque opportunities for arbitrage. And while complex rules may sound conceptually appealing, they may also prove to be challenging to operationalise in practice.

    Banking is as much about risk as it is about uncertainty.19 In such a world, simpler approaches can sometimes be more robust and outperform more complex ones.20 So I personally think that policymaking initiatives should ensure that sufficient attention is placed at striking the right balance between risk sensitivity, simplicity and comparability.

    Conclusion

    In conclusion, the Committee will continue to be guided by its mandate of strengthening the regulation, supervision and practices of banks worldwide. In the near term, when it comes to Basel III, all GHOS members have unanimously reaffirmed their expectation of implementing all aspects of the framework in full, consistently and as soon as possible.21

    More generally, fulfilling our mandate requires us all to remember that:

    • Banks’ boards and senior management are the captains of their ships. You have both the primary and ultimate responsibility for overseeing and managing risks. Regulation and supervision can provide safeguards, but cannot and should not be a substitute for your role in managing your risks prudently.
    • Global bank prudential standards are a public good. We are collectively all better off in a world with global standards than in an autarkic one. Lobbying for deviations at a national level can perhaps provide short-term (private) gains but will ultimately threaten global financial stability. As internationally active banks, it is not in your interest to sail in such an environment.
    • We cannot forget the lessons from past banking crises to prepare effectively for the future. In a financial system undergoing profound structural transformations, such as the digitalisation of finance, the Committee should keep an open mind as to whether additional adjustments to the Basel Framework are warranted over the medium term. And we will focus on global financial stability issues that require a global response.

    As Chair, I am fully committed to leading the Committee in that direction.

    References

    Aikman, D, M Glaesic, G Gigerenzer, S Kapadia, K Kastikopoulos, A Kothiyal, E Murphy and T Neumann (2021): “Taking uncertainty seriously: simplicity versus complexity in financial regulation”, Industrial and Corporate Change, vol 30, no 2, April.

    Basel Committee on Banking Supervision (BCBS) (2020): “Governors and Heads of Supervision commit to ongoing coordinated approach to mitigate Covid-19 risks to the global banking system and endorse future direction of Basel Committee work”, press release, 30 November.

    — (2022a): Evaluation of the impact and efficacy of the Basel III reforms, December.

    — (2022b): Evaluation of the impact and efficacy of the Basel III reforms – Annex, December.

    — (2023): Report on the 2023 banking turmoil, October.

    — (2024a): “Erik Thedéen appointed as Chair of the Basel Committee on Banking Supervision”, press release, 13 May.

    — (2024b): “Governors and Heads of Supervision reiterate commitment to Basel III implementation and provide update on cryptoasset standard”, press release, 13 May.

    — (2024c): “BCBS dashboards”, September.

    — (2024d): The 2023 banking turmoil and liquidity risk: a progress report, October.

    Carstens, A (2019): “The role of regulation, implementation and research in promoting financial stability”, keynote address at the Bank of Spain and CEMFI Second Conference on Financial Stability, Madrid, 3 June.

    Hernández de Cos, P (2019): “The future path of the Basel Committee: some guiding principles”, keynote speech at the Institute for International Finance Annual Membership Meeting, Washington DC, 17 October.

    — (2022): “A resilient transition to net zero”, remarks at the International Economic Forum of the Americas, 28th edition of the Conference of Montreal, 11 July.

    — (2024): “Building on 50 years of global cooperation”, keynote speech at the 23rd International Conference of Banking Supervisors, Basel, 24 April.

    Knight, F (1921): Risk, uncertainty and profit, Houghton Mifflin.

    Laeven, L and F Valencia (2018): “Systemic banking crises revisited”, IMF Working Paper, no 18/206.

    S&P Global (2024): “Banks ramp up credit risk transfers to optimise regulatory capital”, 22 February.

    Viterbo, A (2019): “The European Union in the transnational financial regulatory arena: the case of the Basel Committee on Banking Supervision”, Journal of International Economic Law, vol 1, no 24, June.


    This speech and the views expressed are those of the individual and do not necessarily reflect the views and/or position of the BIS or CPMI.

    MIL OSI Global Banks

  • MIL-OSI New Zealand: Economy – Navigating monetary policy through the unknown: A speech by RBNZ Governor Adrian Orr

    Source: Reserve Bank of New Zealand

    24 October 2024 – RBNZ Governor Adrian Orr

    Low and stable inflation is again in sight, as we navigate monetary policy. In New Zealand, consumer price inflation is now at 2.2%, converging on the midpoint of our 1 to 3% target range, Governor Adrian Orr says.  

    “That’s something to celebrate,” he says in a speech delivered at the Peterson Institute in Washington DC, while attending the IMF and World Bank Annual Meetings, where policymakers are discussing monetary policy.

    “Navigating monetary policy, with a 1 to 2-year lag between policy action and ultimate outcome, is akin to ocean circumnavigation,” Mr Orr says.  

    “When setting monetary policy, we have a clear – unmovable – destination in mind. However, we only have a reasonable sense of where we are currently located, and only partial knowledge of the sturdiness of the economy and the effectiveness of policy instruments.  

    “We must also be cognisant of unanticipated risks ahead, and at times act swiftly to avoid perils. First, stay afloat. For monetary policy makers, peril includes a long and persistent downturn, with monetary policy stuck at the effective lower bound, or an inflationary spiral. Over recent years, global monetary policy navigators have had to act fast to avoid both perils.”

    “It is now pleasing to be able to ease monetary policy in New Zealand, but it’s still at a level we think is restrictive, so as to work against any remaining inflationary tendencies that may linger.”

    A key question now is how long it will take for any lingering inflationary pressures to dissipate?  “The sooner this happens, the sooner we will be able to claim that the inflation caused by COVID-19 – amongst other severe shocks — is behind us.”

    “We are in a situation where we can provide the perspective of an economy returning to low and stable inflation, interest rates becoming less restrictive, and economic activity being revitalised. But that is just the most recent navigational plot on the ocean chart,” he says.

    More information

    Watch the livestream on the PIIE YouTube channel

    https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=86f4fb4d8a&e=f3c68946f8

    Download the speech (PDF, 1MB) https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=6900311933&e=f3c68946f8

    MIL OSI New Zealand News

  • MIL-OSI: SHAREHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of Sandy Spring Bancorp, Inc. – SASR

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Sandy Spring Bancorp, Inc. (Nasdaq: SASR), relating to a proposed merger with Atlantic Union Bankshares Corp. Under the terms of the agreement, all Sandy Spring shares will automatically be converted into the right to receive 0.900 Atlantic Union shares, and cash in lieu of fractional shares.

    Click here for more information https://monteverdelaw.com/case/sandy-spring-bancorp-inc/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network

  • MIL-OSI: STOCKHOLDER ALERT: The M&A Class Action Firm Investigates the Merger of SecureWorks Corp. – SCWX

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 23, 2024 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating SecureWorks Corp. (Nasdaq: SCWX), relating to a proposed merger with Sophos Inc. Under the terms of the agreement, all SecureWorks shares will automatically be converted into the right to receive $8.50 in cash.

    Click here for more information https://monteverdelaw.com/case/secureworks-corp/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
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    The MIL Network

  • MIL-OSI: ChampionX Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • Revenue of $906.5 million
    • Net income attributable to ChampionX of $72.0 million
    • Adjusted net income of $85.9 million
    • Adjusted EBITDA of $197.5 million
    • Income before income taxes margin of 11.2%
    • Adjusted EBITDA margin of 21.8%
    • Cash from operating activities of $141.3 million and free cash flow of $108.1 million

    THE WOODLANDS, Texas, Oct. 23, 2024 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced third quarter of 2024 results. Revenue was $906.5 million, net income attributable to ChampionX was $72.0 million, and adjusted EBITDA was $197.5 million. Income before income taxes margin was 11.2% and adjusted EBITDA margin was 21.8%. Cash from operating activities was $141.3 million and free cash flow was $108.1 million.

    CEO Commentary

    “The third quarter demonstrated the resiliency of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated robust free cash flow. These results were the direct result of our employees around the world remaining laser-focused on serving our customers well, and I am grateful to them for their dedication to our corporate purpose of improving lives,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

    “During the third quarter of 2024, we generated revenue of $907 million, which decreased 4% year-over-year, as growth in North America, Middle East & Africa, Europe, and Asia Pacific was offset by Latin America, which was impacted by lower sales in Mexico. Revenue from all areas other than Mexico increased 6% year-over-year. Our revenue increased 1% sequentially, with both North America and international revenues increasing slightly versus the second quarter. North America revenues were up 2% sequentially, driven primarily by higher sales volumes in our artificial lift business. International revenues were up 1% sequentially, driven, in part, by the contribution of RMSpumptools, which was acquired during the quarter. We generated net income attributable to ChampionX of $72 million, income before income taxes margin of 11.2%, and we delivered adjusted EBITDA of $198 million, representing a 21.8% adjusted EBITDA margin, our highest level as ChampionX, which speaks to the productivity and profitability focus of our team.

    “Cash flow from operating activities was $141 million during the third quarter, which represented 196% of net income attributable to ChampionX, and we generated strong free cash flow of $108 million, which represented 55% of our adjusted EBITDA for the period. We remain confident in achieving at least 50% adjusted EBITDA to free cash flow conversion for 2024. Our balance sheet and financial position remain strong, ending the third quarter with approximately $1.1 billion of liquidity, including $389 million of cash and $671 million of available capacity on our revolving credit facility.”

    Agreement to be Acquired by SLB

    On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions. It is currently anticipated that the closing of the transaction will occur in the first quarter of 2025.

    ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its third quarter 2024 results.

    Production Chemical Technologies

    Production Chemical Technologies revenue in the third quarter of 2024 was $559.5 million, a decrease of $10.0 million, or 2%, sequentially, due primarily to lower international sales volumes.

    Segment operating profit was $87.3 million and adjusted segment EBITDA was $120.6 million. Segment operating profit margin was 15.6%, an increase of 60 basis points, sequentially, and adjusted segment EBITDA margin was 21.6%, an increase of 94 basis points, sequentially. The sequential increase in segment operating profit margin and adjusted segment EBITDA margin was driven by strong cost management, productivity improvements, and favorable product mix.

    Production & Automation Technologies

    Production & Automation Technologies revenue in the third quarter of 2024 was $275.7 million, an increase of $31.2 million, or 13%, sequentially, due primarily to higher artificial lift systems demand in North America, and the acquisition of RMSpumptools, which was completed during the quarter. Revenue from digital products was $57.9 million in the third quarter of 2024, an increase of 7% sequentially, driven by increased customer activity in North America.

    Segment operating profit was $34.1 million and adjusted segment EBITDA was $69.6 million. Segment operating profit margin was 12.4%, an increase of 330 basis points, sequentially, and adjusted segment EBITDA margin was 25.2%, an increase of 118 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes, productivity improvements, and favorable product mix.

    Drilling Technologies

    Drilling Technologies revenue in the third quarter of 2024 was $51.8 million, a decrease of $1.1 million, or 2%, sequentially, driven by lower sales volumes in the bearings product line associated with customers managing inventory levels.

    Segment operating profit was $11.5 million and adjusted segment EBITDA was $12.9 million. Segment operating profit margin was 22.2%, compared to 22.4% in the prior quarter, and adjusted segment EBITDA margin was 24.8%, a decrease of 2 basis points, sequentially, due primarily to lower volumes.

    Reservoir Chemical Technologies

    Reservoir Chemical Technologies revenue in the third quarter 2024 was $20.5 million, a decrease of $6.6 million, or 24%, sequentially, driven by lower sales volumes in the U.S. and internationally.

    Segment operating profit was $1.7 million and adjusted segment EBITDA was $3.3 million. Segment operating profit margin was 8.2%, a decrease of 793 basis points, sequentially, and adjusted segment EBITDA margin was 16.0%, a decrease of 592 basis points, sequentially. The decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower volumes.

    Other Business Highlights

    • ChampionX won the Gulf Energy Information Excellence Award for best coating / corrosion advancement technology for its AnX coiled rod product line. The company was a finalist in four additional categories: SMARTEN™ XE ESP control system in the best controls, instrumentation, automation technology category; Pump Checker™ gas lift analysis module in the best digital transformation – upstream category; Chemical Technologies Decarbonization Program in the best HSE contribution category; and the ChampionX Diversity, Equality, and Inclusion programs in the DE&I in energy category.

    Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

    • In the Asia Pacific region, ChampionX secured a significant new contract to provide both engineering services and the initial chemical supply for a new Floating Production Storage and Offloading (FPSO) unit, set to be deployed at a large gas condensate field in Australasia. Operations are scheduled to begin in the first half of 2025 and contribute significantly to regional Liquified Natural Gas (LNG) production capacity. This strategic win further strengthens our presence in the region and reinforces our commitment to delivering innovative, high-quality solutions to our upstream customers.
    • ChampionX was awarded a large first-fill contract to supply multiple production chemicals for corrosion inhibitors, scale inhibitors, and biocides for a major onshore oil and gas incremental project in Saudi Arabia.
    • ChampionX has secured a first-fill contract to supply production chemicals for a significant gas development program in Qatar.
    • ChampionX secured a multi-million-dollar order for a novel application of UltraFab in Carbon Capture, Utilization, and Storage (CCUS) for delivery in 2025.
    • ChampionX recently completed the pre-commission cleaning, chemical treatment, and readiness work for the 303-mile natural gas Mountain Valley Pipeline connecting Marcellus and Utica shale production to markets in the Mid- and South-Atlantic regions.
    • In the Canadian oil sands, ChampionX completed a steam additive first-fill program for a major technology development trial, leading to additional market interest.
    • ChampionX was awarded a three-year contract extension from a major producer in the San Juan Basin in California, recognizing our service, people, and commitment to helping the producer achieve their strategic goals as reasons for the extension.
    • As part of an initiative to expand our technology into adjacent markets, ChampionX Reservoir Chemical Technologies was awarded business with a premier supplier of local sand used for hydraulic fracturing in the Permian Basin. Our solution affords the supplier a significant savings on sand drying costs and is designed to increase operational throughput.

    Other Business Highlights: Production & Automation Technologies

    • In the third quarter, ChampionX completed the acquisition of RMSpumptools, a provider of advanced mechanical and electrical solutions for complex ESP systems. The acquisition expands ChampionX’s international footprint while providing greater opportunities for RMSpumptools in North America. Soon after the acquisition close, our Permian ESP team collaborated with RMSpumptools to deliver a sand control solution to a major oil company operating in the Permian basin.
    • ChampionX Artificial Lift expanded its Latin America footprint into Ecuador with a contract award for two 400HP multiplex surface pump systems for jet lift applications. This accomplishment is the result of a strengthening partnership with a Latin America independent operator that is expanding its operations from Colombia to Ecuador. Unlike typical systems, the surface pump and oil vessel required for jet lifted wells will be built on one skid with all the necessary piping, which reduces assembly time at the wellsite.
    • Building on the combined strengths of our XSPOC artificial lift software and the acquisition of Artificial Lift Performance Limited Pump Checker software, ChampionX introduced ALLY™ production optimization digital solutions, debuting a modern interface with user-friendly dashboards and intuitive workflows, paired with powerful performance—ingesting, processing, and displaying more data than ever before. It is a one-stop-shop for production teams to manage and optimize their producing assets, regardless of lift type or equipment provider. Building on the launch of this new digital solution, in the third quarter ChampionX secured seven new clients for our production optimization software solution.
    • ChampionX launched the PCS Ferguson new generation SMARTEN™ Unify control system, which is engineered to deliver sophisticated digital automation and optimization capabilities at a cost of ownership that fits within the narrow economic profile of plunger lifted wells. SMARTEN Unify provides enhanced visibility to what is happening “live” at any second in a plunger lift system, eliminating the need for operating based on calculated guesses.

    Other Business Highlights: Drilling Technologies

    • Drilling Technologies’ diamond bearings products continue to see positive test results in additional downhole drilling and completion tools applications.
    • Drilling Technologies’ diamond inserts business had significant new products launches with four major customers.

    About Non-GAAP Measures

    In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

    About ChampionX

    ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com

    Forward-Looking Statements

    This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (the “SEC”) on January 24, 2024 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 6, 2024, and each of their respective, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

    These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s subsequent Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

    Investor Contact: Byron Pope
    byron.pope@championx.com 
    281-602-0094

    Media Contact: John Breed
    john.breed@championx.com 
    281-403-5751

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)

      Three Months Ended   Nine Months Ended
      September 30,   June 30,   September 30,   September 30,
    (in thousands, except per share amounts)   2024       2024       2023       2024       2023  
    Revenue $ 906,533     $ 893,272     $ 939,783     $ 2,721,946     $ 2,814,730  
    Cost of goods and services   608,764       613,426       647,923       1,845,127       1,957,309  
    Gross profit   297,769       279,846       291,860       876,819       857,421  
    Costs and expenses:                  
    Selling, general and administrative expense   180,501       182,995       162,317       535,910       485,617  
    (Gain) loss on sale-leaseback transaction and disposal group   57                   (29,826 )     12,965  
    Interest expense, net   14,137       15,421       13,744       43,493       40,754  
    Foreign currency transaction (gains) losses, net   3,505       (2,767 )     7,992       793       21,683  
    Other expense (income), net   (2,176 )     938       (1,994 )     1,689       (13,494 )
    Income before income taxes   101,745       83,259       109,801       324,760       309,896  
    Provision for income taxes   28,078       27,868       29,009       82,542       69,334  
    Net income   73,667       55,391       80,792       242,218       240,562  
    Net income attributable to noncontrolling interest   1,659       2,822       3,081       4,718       3,522  
    Net income attributable to ChampionX $ 72,008     $ 52,569     $ 77,711     $ 237,500     $ 237,040  
                       
    Earnings per share attributable to ChampionX:                  
    Basic $ 0.38     $ 0.28     $ 0.40     $ 1.25     $ 1.20  
    Diluted $ 0.37     $ 0.27     $ 0.39     $ 1.23     $ 1.18  
                       
    Weighted-average shares outstanding:                  
    Basic   190,496       190,426       195,881       190,575       197,058  
    Diluted   193,362       193,257       199,592       193,655       201,025  
                                           

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (in thousands) September 30, 2024   December 31, 2023
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $ 389,109     $ 288,557  
    Receivables, net   434,107       534,534  
    Inventories, net   546,817       521,549  
    Prepaid expenses and other current assets   68,218       80,777  
    Total current assets   1,438,251       1,425,417  
           
    Property, plant and equipment, net   760,775       773,552  
    Goodwill   729,783       669,064  
    Intangible assets, net   270,361       243,553  
    Other non-current assets   178,490       130,116  
    Total assets $ 3,377,660     $ 3,241,702  
           
    LIABILITIES AND EQUITY      
    Current Liabilities:      
    Current portion of long-term debt $ 6,203     $ 6,203  
    Accounts payable   455,485       451,680  
    Other current liabilities   278,498       324,866  
    Total current liabilities   740,186       782,749  
           
    Long-term debt   592,161       594,283  
    Other long-term liabilities   246,296       203,639  
    Stockholders’ equity:      
    ChampionX stockholders’ equity   1,814,310       1,676,622  
    Noncontrolling interest   (15,293 )     (15,591 )
    Total liabilities and equity $ 3,377,660     $ 3,241,702  
                   

    CHAMPIONX CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)

      Nine Months Ended September 30,
    (in thousands)   2024       2023  
    Cash flows from operating activities:      
    Net income $ 242,218     $ 240,562  
    Depreciation and amortization   183,291       177,226  
    (Gain) loss on sale-leaseback transaction and disposal group   (29,826 )     12,965  
    Loss on Argentina Blue Chip Swap transaction   7,086        
    Deferred income taxes   (16,810 )     (15,380 )
    Loss (gain) on disposal of fixed assets   868       (1,480 )
    Receivables   115,269       85,181  
    Inventories   (40,118 )     (50,011 )
    Accounts payable   (30,577 )     (7,018 )
    Other assets   6,665       17,470  
    Leased assets   (24,193 )     (38,597 )
    Other operating items, net   (31,442 )     (49,600 )
    Net cash flows provided by operating activities   382,431       371,318  
           
    Cash flows from investing activities:      
    Capital expenditures   (101,403 )     (110,965 )
    Proceeds from sale of fixed assets   9,323       12,328  
    Proceeds from sale-leaseback transaction   44,292        
    Purchase of investments   (31,526 )      
    Sale of investments   24,358        
    Acquisitions, net of cash acquired   (123,269 )      
    Net cash used for investing activities   (178,225 )     (98,637 )
           
    Cash flows from financing activities:      
    Proceeds from long-term debt         15,500  
    Repayment of long-term debt   (4,652 )     (43,625 )
    Repurchases of common stock   (49,399 )     (159,730 )
    Dividends paid   (52,430 )     (48,309 )
    Other   3,854       (384 )
    Net cash used for financing activities   (102,627 )     (236,548 )
           
    Effect of exchange rate changes on cash and cash equivalents   (1,027 )     (1,314 )
           
    Net increase in cash and cash equivalents   100,552       34,819  
    Cash and cash equivalents at beginning of period   288,557       250,187  
    Cash and cash equivalents at end of period $ 389,109     $ 285,006  
                   

    CHAMPIONX CORPORATION
    BUSINESS SEGMENT DATA
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Segment revenue:          
    Production Chemical Technologies $ 559,539     $ 569,577     $ 604,254  
    Production & Automation Technologies   275,700       244,487       256,148  
    Drilling Technologies   51,792       52,888       54,869  
    Reservoir Chemical Technologies   20,531       27,123       25,093  
    Corporate and other   (1,029 )     (803 )     (581 )
    Total revenue $ 906,533     $ 893,272     $ 939,783  
               
    Income before income taxes:        
    Segment operating profit (loss):          
    Production Chemical Technologies $ 87,260     $ 85,388     $ 94,560  
    Production & Automation Technologies   34,136       22,207       28,299  
    Drilling Technologies   11,501       11,863       12,255  
    Reservoir Chemical Technologies   1,675       4,363       2,461  
    Total segment operating profit   134,572       123,821       137,575  
    Corporate and other   18,690       25,141       14,030  
    Interest expense, net   14,137       15,421       13,744  
    Income before income taxes $ 101,745     $ 83,259     $ 109,801  
               
    Operating profit margin / income before income taxes margin:          
    Production Chemical Technologies   15.6 %     15.0 %     15.6 %
    Production & Automation Technologies   12.4 %     9.1 %     11.0 %
    Drilling Technologies   22.2 %     22.4 %     22.3 %
    Reservoir Chemical Technologies   8.2 %     16.1 %     9.8 %
    ChampionX Consolidated   11.2 %     9.3 %     11.7 %
               
    Adjusted EBITDA          
    Production Chemical Technologies $ 120,622     $ 117,421     $ 133,101  
    Production & Automation Technologies   69,604       58,848       59,288  
    Drilling Technologies   12,867       13,149       13,786  
    Reservoir Chemical Technologies   3,292       5,954       4,198  
    Corporate and other   (8,873 )     (12,139 )     (12,837 )
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  
               
    Adjusted EBITDA margin          
    Production Chemical Technologies   21.6 %     20.6 %     22.0 %
    Production & Automation Technologies   25.2 %     24.1 %     23.1 %
    Drilling Technologies   24.8 %     24.9 %     25.1 %
    Reservoir Chemical Technologies   16.0 %     22.0 %     16.7 %
    ChampionX Consolidated   21.8 %     20.5 %     21.0 %
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Net income attributable to ChampionX $ 72,008     $ 52,569     $ 77,711  
    Pre-tax adjustments:          
    (Gain) loss on sale leaseback transaction and disposal group(1)   57              
    Russia sanctions compliance and impacts(2)   109       32       95  
    Restructuring and other related charges   5,317       7,927       1,228  
    Merger transaction costs(3)   8,312       15,059        
    Acquisition costs and related adjustments(4)   753       574        
    Intellectual property defense   69       531       220  
    Merger-related indemnification responsibility               722  
    Tulsa, Oklahoma storm damage               1,895  
    Foreign currency transaction (gains) losses, net   3,505       (2,767 )     7,992  
    Loss on Argentina Blue Chip Swap transaction         2,994        
    Tax impact of adjustments   (4,259 )     (5,722 )     (2,702 )
    Adjusted net income attributable to ChampionX   85,871       71,197       87,161  
    Tax impact of adjustments   4,259       5,722       2,702  
    Net income attributable to noncontrolling interest   1,659       2,822       3,081  
    Depreciation and amortization   63,508       60,203       61,839  
    Provision for income taxes   28,078       27,868       29,009  
    Interest expense, net   14,137       15,421       13,744  
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  

    _______________________

    (1) Amount represents the gain on the sale and leaseback of certain buildings and land.
    (2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.
    (3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.
    (4) Includes costs incurred for the acquisition of businesses.
       
      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Diluted earnings per share attributable to ChampionX $ 0.37     $ 0.27     $ 0.39  
    Per share adjustments:          
    (Gain) loss on sale leaseback transaction and disposal group                
    Russia sanctions compliance and impacts                
    Restructuring and other related charges   0.03       0.04       0.01  
    Merger transaction costs   0.04       0.08        
    Acquisition costs and related adjustments                
    Intellectual property defense                
    Merger-related indemnification responsibility               0.01  
    Tulsa, Oklahoma storm damage               0.01  
    Foreign currency transaction (gains) losses, net   0.02       (0.01 )     0.04  
    Loss on Argentina Blue Chip Swap transaction         0.02        
    Tax impact of adjustments   (0.02 )     (0.03 )     (0.02 )
    Adjusted diluted earnings per share attributable to ChampionX $ 0.44     $ 0.37     $ 0.44  
                           

    CHAMPIONX CORPORATION
    RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
    (UNAUDITED)

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Production Chemical Technologies          
    Segment operating profit $ 87,260     $ 85,388     $ 94,560  
    Non-GAAP adjustments   7,073       5,851       9,079  
    Depreciation and amortization   26,289       26,182       29,462  
    Segment adjusted EBITDA $ 120,622     $ 117,421     $ 133,101  
               
    Production & Automation Technologies          
    Segment operating profit $ 34,136     $ 22,207     $ 28,299  
    Non-GAAP adjustments   1,656       6,000       2,089  
    Depreciation and amortization   33,812       30,641       28,900  
    Segment adjusted EBITDA $ 69,604     $ 58,848     $ 59,288  
               
    Drilling Technologies          
    Segment operating profit $ 11,501     $ 11,863     $ 12,255  
    Non-GAAP adjustments   54             (8 )
    Depreciation and amortization   1,312       1,286       1,539  
    Segment adjusted EBITDA $ 12,867     $ 13,149     $ 13,786  
               
    Reservoir Chemical Technologies          
    Segment operating profit $ 1,675     $ 4,363     $ 2,461  
    Non-GAAP adjustments   3       11       72  
    Depreciation and amortization   1,614       1,580       1,665  
    Segment adjusted EBITDA $ 3,292     $ 5,954     $ 4,198  
               
    Corporate and other          
    Segment operating profit $ (32,827 )   $ (40,562 )   $ (27,774 )
    Non-GAAP adjustments   9,336       12,488       920  
    Depreciation and amortization   481       514       273  
    Interest expense, net   14,137       15,421       13,744  
    Segment adjusted EBITDA $ (8,873 )   $ (12,139 )   $ (12,837 )
                           

    Free Cash Flow

      Three Months Ended
      September 30,   June 30,   September 30,
    (in thousands)   2024       2024       2023  
    Free Cash Flow          
    Cash flows from operating activities $ 141,298     $ 67,625     $ 163,030  
    Less: Capital expenditures, net of proceeds from sale of fixed assets   (33,248 )     (29,310 )     (48,469 )
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
               
    Cash From Operating Activities to Revenue Ratio          
    Cash flows from operating activities $ 141,298     $ 67,625     $ 163,030  
    Revenue $ 906,533     $ 893,272     $ 939,783  
               
    Cash from operating activities to revenue ratio   16 %     8 %     17 %
               
    Free Cash Flow to Revenue Ratio          
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
    Revenue $ 906,533     $ 893,272     $ 939,783  
               
    Free cash flow to revenue ratio   12 %     4 %     12 %
               
    Free Cash Flow to Adjusted EBITDA Ratio          
    Free cash flow $ 108,050     $ 38,315     $ 114,561  
    Adjusted EBITDA $ 197,512     $ 183,233     $ 197,536  
               
    Free cash flow to adjusted EBITDA ratio   55 %     21 %     58 %

    The MIL Network

  • MIL-OSI: Brown & Brown, Inc. announces 15% increase in quarterly cash dividend rate

    Source: GlobeNewswire (MIL-OSI)

    DAYTONA BEACH, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE: BRO) today announced that the board of directors has declared a regular quarterly cash dividend of $0.15 per share. The dividend is payable on November 13, 2024, to shareholders of record on November 6, 2024. The dividend represents a 15% increase from the previous regular quarterly cash dividend of $0.13 per share and is Brown & Brown’s 31st consecutive annual dividend increase.

    About Brown & Brown, Inc.

    Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm, delivering risk management solutions to individuals and businesses since 1939. With over 16,000 teammates and 500+ locations worldwide, we are committed to providing innovative strategies to help protect what our customers value most. For more information or to find an office near you, please visit bbinsurance.com.

    For more information:

    R. Andrew Watts
    Chief Financial Officer
    (386) 239-5770

    The MIL Network

  • MIL-OSI: Parker Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    CLEVELAND, Oct. 23, 2024 (GLOBE NEWSWIRE) — Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that its Board of Directors has declared a regular quarterly cash dividend of $1.63 per share of common stock to shareholders of record as of November 8, 2024. The dividend is payable December 6, 2024.

    This is the company’s 298th consecutive quarterly dividend. Parker has increased its annual dividends per share paid to shareholders for 68 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 Index. 

    Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Learn more at www.parker.com or @parkerhannifin.

    ###

    The MIL Network

  • MIL-OSI USA: Tillis Urges Congress to Quickly Pass a Disaster Recovery Package

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis
    WASHINGTON, D.C. – Today, The Hill published an op-ed by Senator Thom Tillis on the importance for elected officials in Congress to step up and be proactive with long-term disaster recovery assistance. 
    Read the full op-ed HERE.
    Tillis on North Carolina’s recovery from Helene:
    “The recovery process will be long and difficult and will require years and billions of dollars of assistance. That is why it is so important for elected officials in Congress to step up and be proactive — not reactive — with long-term disaster recovery assistance. This is why I have led a bipartisan group of senators in disaster-hit states calling on Congress to end its seven-week recess and come back to Washington to pass a disaster funding package that initiates the long-term recovery process for victims and communities ravaged by Helene and Milton.” 
    Tillis on the need to replenish the SBA Disaster Loan Fund and FEMA Disaster Relief Fund:
    “The most pressing need is to replenish the Small Business Administration’s disaster loan fund, which has already run out of money. Few Helene victims have flood insurance, so the SBA’s various disaster recovery programs are key to long-term recovery. By utilizing these programs, victims can access low-interest loans to replace lost property or repair or rebuild their homes or small businesses. The loans can also be used to provide a financial cushion for small businesses that face an economic loss in the months ahead due to the storm. Now that funding for the SBA disaster loan program has run out, it risks delays in processing storm victims’ loans and their ability to get their lives back together. We cannot let this continue to go on. 
    “FEMA is also in danger of running out of money in its Disaster Relief Fund. The hurricane season isn’t over until November and the National Hurricane Center is already monitoring tropical disturbances that could turn into more full-blown storms. It may only get worse.” 
    Tillis on the broken disaster response and recovery process:
    “The fact is, the federal disaster response and recovery process is broken and many Americans understandably have concerns. First, there are questions about prioritization. It was telling that in a 24-hour period in the wake of Helene, the Biden-Harris administration bragged about sending $100 million in transportation funding to rebuild roads in Western North Carolina as it also pledged $157 million in assistance to Lebanon. That is reflective of an administration that can’t read a room and doesn’t have its priorities in order. Wrong message, wrong time. Additionally, there has been a big political dust-up over FEMA money being used for illegal immigrants. This confusion could have been avoided if FEMA had been laser-focused on its mission to respond to natural disasters. FEMA should never have become a funding conduit for responding to the Biden-Harris administration’s border security crisis.
    “Secondly, and most important, is the question about competency. The federal government is already too slow and bureaucratic, but the disaster recovery process takes it to another level. The long-term funding for recovery is, shockingly, neither permanent nor predictable and requires constant reauthorization from Congress. I have worked across the aisle to introduce legislation that would help fix this problem by establishing a permanent and predictable funding process for long-term recovery and getting assistance to families and business owners sooner. 
    “There also needs to be a drastic improvement in how FEMA assists victims who suffer property damage. I recently introduced a bipartisan bill to end the ‘one-size-fits-all’ approach to disaster relief and cut the red tape that prevents many individuals and communities from accessing the relief they desperately need when they need it.” 

    MIL OSI USA News

  • MIL-OSI New Zealand: Parliament Hansard Report – Restoring Citizenship Removed by Citizenship (Western Samoa) Act 1982 Bill — Second Reading – 001431

    Source: New Zealand Parliament – Hansard

    lass=”BeginningOfDay”>WEDNESDAY, 23 OCTOBER 2024

    (continued on Thursday, 24 October 2024)

    RESTORING CITIZENSHIP REMOVED BY CITIZENSHIP (WESTERN SAMOA) ACT 1982 BILL

    Second Reading

    SPEAKER: Members, in accordance with a determination of the Business Committee, I call on members’ order of the day No. 1.

    MIL OSI New Zealand News

  • MIL-OSI USA: Celebrating Bioenergy Day 2024 With a Research Retrospective

    Source: US National Renewable Energy Laboratory


    Over the past year NREL researchers made critical advancements for the bioeconomy including recyclable wind turbine blades, converting carbon dioxide to formic acid, biobased and biodegradable polyesters, and wastewater resource recovery using algae. Photos by NREL 

    The U.S. Department of Energy (DOE) National Renewable Energy Laboratory (NREL) bioenergy research empowers the decarbonization of our nation’s industrial and transportation sectors and a circular bioeconomy through development and deployment of sustainable fuel, chemical, and polymer technologies.

    NREL researchers have been uncovering secrets about interesting methods and technologies such as biodegradable plastics, phosphorus-eating algae for resource recovery, sustainable aviation fuel (SAF), and converting carbon dioxide (CO2) to value-added chemicals.

    With National Bioenergy Day 2024 upon us, NREL reflects on some of the team’s scientific discoveries over the past year that have helped strengthen the bioeconomy.

    Bioenergy Research Highlights From Fiscal Year 2024

    Building Bridges Through Relationships and Photosynthesis Research

    How do you bring together long-time research friends and help develop STEM collaboration with historically marginalized institutions and a DOE national laboratory all in a way that ignites passions and furthers bioenergy research? Through the DOE Office of Science Visiting Faculty Program (VFP) of course! Check out how the VFP brought together old friends and new, while mentoring a new generation of STEM students to understand the energy-generating mysteries of blue-green algae.

    An NREL scientist holds small cubes of renewable biomass resin that can be used in wind turbine blades and can be recycled. Photo by Werner Slocum, NREL

    Advancing Methods for Recyclable, Plant-Based Wind Turbine Blades

    Researchers at NREL see a realistic path forward to the manufacture of wind turbine blades derived from renewable biomass. The chemical recycling process allows the components of the blades to be recaptured and reused again and again, allowing the remanufacture of the same product. This method has the potential to end the current practice of old blades winding up in landfills at the end of their useful life.

    Tools To Investigate How Organisms Control Energy at the Electron-Level

    In NREL’s Advanced Spin Resonance Facility there is a special technical capability called electron paramagnetic resonance spectroscopy that provides insight into the most basic energy carrier and unit, the electron. Demystifying the fundamental processes of how organisms control energy at the level of electrons is key to advancing the applied research and development of systems for generating sustainable low-carbon fuels, chemicals, and electricity.

    New Device Architecture Enables Streamlined Production of Formic Acid From CO₂ Using Renewable Electricity

    Formic acid is a potential intermediate chemical with many applications, especially as a raw material for the chemical or biomanufacturing industries and potential input for biological upgrading into SAF. A research team led by NREL developed a conversion pathway to produce formic acid from CO2 with high energy efficiency and durability while using renewable electricity. Analysis confirmed that this pathway is economically viable at scale and with use of commercially available components.

    The novel perforated cation exchange membrane (CEM) architecture in a CO₂ electrolyzer to achieve energy-efficient and durable formic acid production has a patent by K.C. Neyerlin and Leiming Hu pending. Illustration by Elizabeth Stone, NREL

    NREL Biomass Refining Technology a Cornerstone of SAFFiRE Renewables Biofuel Pilot Plant

    SAFFiRE Renewables LLC broke ground in August 2024 on its biofuel pilot plant in Kansas to turn agriculture residue into a scalable biofuel business. The company has licensed an NREL technology that uses an alkaline bath and mechanical shredder to prepare corn stover for ethanol fermentation—essential steps for accessing the energy-dense sugars locked inside. The new plant will not only help DOE with its SAF goals, but using lignocellulosic corn leaves, stalks, and cobs can also reduce greenhouse gas emissions by 88% to 108% on a life-cycle basis compared to conventional jet fuel.  

    WaterPACT Project To Quantify and Reduce Plastic Waste in U.S. Rivers

    With more than a million tons of plastic debris entering ocean-bound rivers, creeks, and sewer drains every year, it is essential to intercept this waste before it enters the ecosystems, communities, and ocean. To help solve this problem, the NREL-led Waterborne Plastics Assessment and Collection Technologies (WaterPACT) project is on a mission to develop renewable-energy-powered technologies that detect, quantify, and collect plastic from U.S. waterways.

    The WaterPACT research team collected plastic and water samples near the mouths of the Columbia, Delaware, Los Angeles, and Mississippi rivers. Each river has a unique watershed (the area of land that drains water to it) and volume of plastics emissions. Illustration by Elizabeth Stone, NREL

    The North Face Taps NREL-Led BOTTLE Consortium To Scale Biodegradable Polyester Alternative

    Polyester-based clothing sheds and disperses tiny microplastic fibers throughout homes, soils, and waterways, taking centuries to degrade. One potential solution is replacing today’s petroleum-derived polyester with a nontoxic, biodegradable alternative made from polyhydroxyalkanoates (PHAs). A team of BOTTLE consortium scientists from NREL and Colorado State University have developed a portfolio of PHAs that behave like conventional polyester but are biobased, biodegradable, and easier to recycle. In conjunction with The North Face, the BOTTLE team is scaling the process to produce several pounds of PHA fiber, which The North Face will test and evaluate for use in its product lines.

    $15 Million Multilaboratory Effort To Advance Commercialization of CO2 Removal

    Carbon dioxide removal technologies have potential to help mitigate climate change by addressing existing carbon emissions and removing them from the atmosphere. To achieve this goal, scientists must first establish robust scientific frameworks and methodologies to account for these efforts—giving governments and private buyers a unified approach to tracking the climate impacts of their investments. In support of this, DOE tapped NREL to support a new $15 million research effort to improve the measurement, reporting, and verification of CO2 removal technologies.

    On the Ground in Colorado, NREL Is Simulating SAF Combustion During Flight

    Public and private investments are helping accelerate production and use of SAF, an energy-dense, renewable fuel seen as essential for decarbonizing flight. Adopting SAF means proving the fuel is as safe and reliable as current fuels while being fully compatible with existing jet engines. NREL has developed computer simulations to predict how SAF performs during flight and provide insights on how to maximize its safety and performance. These simulated SAF combustion tests could determine if new fuels meet requirements before industry invests millions of dollars to produce large volumes for ASTM engine tests.

    The Dynamics of Jet Fuel Combustion—Researchers from NREL’s Computational Science Center look at a detailed simulation of sustainable aviation fuel as it combusts in a “virtual jet engine.” Photo by Joe DelNero, NREL

    NREL Researchers Produce First Macromolecular Model of Plant Secondary Cell Wall

    Lignocellulosic biomass has potential as a feedstock for low-carbon biobased fuels and chemicals. However, this biomass type is difficult to break down during the conversion process due to three layers of biopolymers. NREL scientists quantitatively defined the relative positioning and structure of the three biopolymer layers in Populus wood using solid-state nuclear magnetic resonance and molecular modeling. Having a computer model of the interplay of these three biopolymers will help design more efficient deconstruction approaches to convert renewable lignocellulosic biomass into better biobased materials.

    NREL Research Quantifies Losses From Cardboard, Paper Waste

    Of the estimated 110 million metric tons of paper and cardboard waste tossed out across the United States in 2019, approximately 56% was landfilled and 38% was recycled. This category of waste includes everything from newspapers and magazines to books and napkins, from junk mail and photographs to pizza boxes and milk cartons. New research from NREL showed that the estimated value for recovered postconsumer paper and carboard from landfills is $4 billion. Understanding this value can guide policymakers toward sustainable waste management practices and help researchers study the impact of implementing new waste-management technologies.

    Newly Identified Algal Strains Rich in Phosphorous Could Improve Wastewater Treatment

    Phosphorus in wastewater is a major contributor to harmful algal blooms in water bodies around the globe, with the potential to harm wildlife, livestock, and humans. To prevent this, wastewater treatment plants often rely on chemical- and energy-intensive techniques to remove phosphorus before it can impact downstream water bodies. NREL researchers developed the Revolving Algal Biofilm system for phosphorus removal from wastewater by maximizing the ability of algae to harness solar energy to efficiently accumulate and remove phosphorus from water.

    A close-up of algal biofilm on a RAB system is shown on the left. On the right is a dried algal fertilizer product produced from the system. Photos from Gross-Wen Technologies

    Pick Your Polymer Properties and This NREL Tool Predicts How To Achieve Them With Biomass

    Petroleum-based polymers form the building blocks of plastics. Plastics can be made out of renewable biomass and waste resources, but identifying the right chemistry to make biobased polymers more sustainable and higher performing is the challenge. An NREL machine learning tool, PolyID™: Polymer Inverse Design, makes it easier to identify biobased polymers for use in plastics. Using artificial intelligence, the tool can screen millions of possible biobased polymer designs to create a short list of candidates for a given application.

    Learn more about NREL’s bioenergy research.

    MIL OSI USA News

  • MIL-OSI USA: Four Disaster Recovery Centers Close This Week, But Help Is Still Available

    Source: US Federal Emergency Management Agency

    Headline: Four Disaster Recovery Centers Close This Week, But Help Is Still Available

    Four Disaster Recovery Centers Close This Week, But Help Is Still Available

    SPRINGFIELD – Four FEMA/State Disaster Recovery Centers will close this week, but help will still be available. FEMA teams will work closely with county emergency managers to ensure Illinoisans who live in one of the seven designated counties will still be able to apply for assistance, update their application information, and speak to a FEMA specialist.The best way to get help from FEMA is by calling the helpline at 800-621-3362 or by contacting the county emergency management office for guidance. Applications will also continue to be accepted online at DisasterAssistance.gov or on the FEMA mobile app.The following location closes Thursday, October 24 at 7:30 p.m.:Kaskaskia College Extension Center17869 Exchange Ave.Nashville, IL 62263Hours: Tues. – Thurs. 10:30 a.m. – 7:30 p.m.The following locations close Friday, October 25 at 7 p.m.:Cuba Community Center616 E Polk St.Cuba, IL 61427Hours: Tues. – Fri. 8 a.m. – 7 p.m.Henry County Office of Emergency Management4424 Walter Payton Memorial Highway (Hwy 34)Kewanee, IL 61443Hours: Tues. – Fri. 8 a.m. – 7 p.m.Will County Center for Community Concerns2455 Glenwood Ave.Joliet, IL 60435Hours: Tues. – Fri. 8 a.m. – 7 p.m.Other Disaster Recovery Centers Remain OpenSeveral Disaster Recovery Centers will remain open throughout the state. No appointments are necessary; walk-ins are welcome. Survivors can visit any recovery center to speak with specialists from FEMA, the State of Illinois and the U.S. Small Business Administration. Starting Saturday, October 26, the hours of operation for the remaining recovery centers will be:Southwestern Illinois Justice & Workforce Development Campus2300 W. Main St.Suite M117 (City of Belleville Office Bldg.)Belleville, IL 62226Hours: Mon. – Fri. 8 a.m. – 6 p.m., Sat. 9 a.m. – 5 p.m., Closed SundaysCahokia Heights Fitness and Community Center509 Camp Jackson RoadCahokia Heights, IL 62207Hours: Mon. – Fri. 8 a.m. – 6 p.m., Sat. 9 a.m. – 5 p.m., Closed SundaysForest City Church1280 S. Alpine RoadRockford, IL 61108Hours: Mon. – Fri. 8 a.m. – 6 p.m., Sat. 9 a.m. – 2 p.m., Closed SundaysChicago Lawn Branch Library6120 S. Kedzie Ave.Chicago, IL 60629Hours: Mon. and Wed. 10 a.m. – 6 p.m., Tues. and Thurs. 12 p.m. – 6 p.m., Fri. and Sat. 9 a.m. – 5 p.m., Closed SundaysVillage of Homewood Auditorium2010 Chestnut RoadHomewood, IL 60430Hours: Mon. – Fri. 8 a.m. – 6 p.m., Sat. 9 a.m. – 5 p.m., Closed SundaysBeverly Center3031 South 25th Ave.Broadview, IL 60155Hours: Mon. – Fri. 8 a.m. – 6 p.m., Sat. 9 a.m. – 5 p.m., Closed SundaysFor the latest information on recovery center locations and hours, visit FEMA.gov/DRC.For even more information about the disaster recovery operation in Illinois, visit www.fema.gov/disaster/4819.  
    kimberly.keblish
    Wed, 10/23/2024 – 21:00

    MIL OSI USA News

  • MIL-OSI USA: Application for FEMA Assistance Required for a Home Inspection

    Source: US Federal Emergency Management Agency

    Headline: Application for FEMA Assistance Required for a Home Inspection

    Application for FEMA Assistance Required for a Home Inspection

    FEMA personnel are conducting home inspections in areas affected by Tropical Storm Helene to help determine whether the residences are safe, sanitary and livable. FEMA will not conduct a home inspection at any home where occupants have not applied for assistance.However, due to the volume of registrations, FEMA is working with the Tennessee Emergency Management Agency and officials in the impacted counties to call or text those who have applied to schedule an appointment.If you applied for FEMA assistance and received a letter from FEMA stating you were found Ineligible due to “No Contact,” call the FEMA Helpline at 800-621-3362 to update/confirm your contact information and schedule your inspection. If a FEMA inspector shows up unannounced, he/she will have photo identification to show you. For security reasons, federal identification may not be photographed. A FEMA inspector will never ask for, or accept, money. Their service is free. A typical home inspection takes about 45 minutes to complete. After the inspection, applicants should allow seven to 10 days for processing. If you have questions about the status of your application, you can call the FEMA Helpline.Inspectors do not make decisions on eligibility for assistance. Information gathered during the inspection is among the criteria FEMA uses to determine if applicants are eligible for federal assistance. The inspectors consider:The structural soundness of the home, both inside and outside.Whether the electrical, gas, heat, plumbing and sewer/septic systems are all in working order.Whether the home is safe to live in and can be entered and exited safely.The deadline to apply for federal assistance is Monday, Dec. 2.To apply, go online to DisasterAssistance.gov, use the FEMA App or call the FEMA Helpline at 800-621-3362. Lines are open from 7 a.m. to midnight Eastern Time. Operators speak most languages; if you use a relay service, captioned telephone or other service, you can give FEMA your number for that service. You may also visit a Disaster Recovery Center. For locations and hours, visit fema.gov/drc.To watch an accessible video on how to apply, visit FEMA Accessible: Registering for Individual Assistance (youtube.com).You may also apply for a low-interest disaster loan from the U.S. Small Business Administration. SBA disaster loans are the largest source of federal recovery funds for homeowners, renters and businesses of all sizes. To learn more or to apply, visit sba.gov/disaster or call SBA’s Customer Service Center at 800-659-2955. Email DisasterCustomerService@sba.gov for more information or to have a loan application mailed to you.To learn more about FEMA home inspections and how to identify an inspector, visit FEMA Home Inspections.
    kwei.nwaogu
    Wed, 10/23/2024 – 21:00

    MIL OSI USA News

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

    Source: US Federal Emergency Management Agency

    Headline: Disaster Recovery Center Opening in Oconee County

    Disaster Recovery Center Opening in Oconee County

    A Disaster Recovery Center will open in Oconee County to provide in-person assistance to South Carolinians affected by Hurricane Helene.  Oconee CountyBountyland Education Campus100 Vocational DriveSeneca, SC 29672Open Oct. 23-25, 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
    Wed, 10/23/2024 – 21:18

    MIL OSI USA News

  • MIL-OSI USA: Welch Joins Students, GE Aerospace Foundation in Rutland for Discussion on Workforce Training, Celebrates Donation to Stafford Technical Center

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)

    RUTLAND, VT– Today, Senator Peter Welch (D-Vt.) joined students and educators at Stafford Technical Center, Rutland Mayor Mike Doenges, GE Aerospace and GE Aerospace Foundation in Rutland to celebrate Vermont’s strong Career and Technical Education (CTE) programs—and celebrate GE Aerospace Foundation’s announcement of a new $200,000 grant to Stafford to support its workforce training programs.  
    This funding, provided as part of a larger $2.3 million donation by GE Aerospace and the GE Aerospace Foundation to similar organizations in the U.S. and globally, will help Stafford Technical Center purchase two advanced machines used in manufacturing: the Pick & Place machine, which helps maintain accuracy in repetitive tasks; and a Coordinate Measuring Machine, which is used to check the dimensions of assemblies and parts ensuring they meet the design intent. Around 100 students will train on these new advanced machines every year. 
    “Students need the hands-on skills training that Stafford Technical Center provides to be competitive in today’s job market. Stafford’s programs set Vermont students apart from the rest, and should be a model for other communities as we look to educate workers in critical industries like manufacturing and engineering,” said Senator Welch, a member of the Senate Commerce Committee. “This donation from the GE Aerospace Foundation will prepare students for good-paying manufacturing jobs here in Vermont by giving them the skills they need before they enter the workforce, and it also continues GE’s commitment to Rutland and Vermont’s economic success. These partnerships and investments in our communities are incredibly valuable and will support the education and skills for hundreds of students, wherever life takes them, for years to come.”  
    “We are making this donation because skills are the number one factor in worker success and retention in manufacturing. No matter where they work, the entire manufacturing industry will benefit from these students learning on the latest machinery,” said GE Aerospace Rutland Site Leader Dan Shelley. “GE Aerospace and its Foundation will continue to invest in the workforce so they can build the future of flight, just as we have for more than 50 years in Rutland.” 
    The Stafford Technical Center opened in 1973 and recently celebrated its 50th anniversary. The school offers programs to high-school aged students, as well as adult leaders looking to build on current skills or re-skill. Today, the school offers students 14 programs, including: construction technology; automative technology; welding and metal fabrication; engineering; electrical and plumbing; auto body repair; education and human services; natural resources and forestry; public safety and criminal justice; video communications; digital arts; cosmetology; culinary arts; health careers. 
    Earlier this year, GE Aerospace announced plans to invest nearly $25 million in its Rutland facility.  
    View photos from the event below:  

    MIL OSI USA News

  • MIL-OSI USA: SBA Disaster Loans Available in South Carolina for Private Non-Profit Organizations

    Source: United States Small Business Administration

    ATLANTA -The U.S. Small Business Administration (SBA) announced today that certain Private Non-Profit organizations (PNPs) in South Carolina that do not provide critical services of a governmental nature may be eligible to apply for low-interest disaster loans for damages as a result of Hurricane Helene that began on Sept. 25.

    Eligible PNP organizations in Abbeville, Aiken, Allendale, Anderson, Bamberg, Barnwell, Calhoun, Cherokee, Chester, Colleton, Edgefield, Fairfield, Greenville, Greenwood, Hampton, Jasper, Kershaw, Lancaster, Laurens, Lexington, McCormick, Newberry, Oconee, Orangeburg, Pickens, Richland, Saluda, Spartanburg, Union, Williamsburg and York counties and the Catawba Indian Nation may apply. Examples of eligible non-critical PNP organizations include, but are not limited to, food kitchens, homeless shelters, museums, libraries, community centers, schools, and colleges. 

    PNP organizations may borrow up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.  The interest rate is 3.25%, with terms up to 30 years.

    On October 15, 2024, it was announced that funds for the Disaster Loan Program have been fully expended. While no new loans can be issued until Congress appropriates additional funding, we remain committed to supporting disaster survivors. Applications will continue to be accepted and processed to ensure individuals and businesses are prepared to receive assistance once funding becomes available.

    Applicants are encouraged to submit their loan applications promptly for review in anticipation of future funding.

    Applicants may be eligible for a loan amount increase of up to 20 percent of their physical damages, as verified by the SBA, for mitigation purposes. Eligible mitigation improvements might include insulating pipes, walls and attics, weather stripping doors and windows, and installing storm windows to help protect property and occupants from future damage caused by any disaster.

    The SBA also offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs, such as ongoing operating expenses for PNP organizations.  EIDL assistance is available regardless of whether the organization suffered any physical property damage. 

    PNP organizations are urged to contact their county’s Emergency Manager to provide information about their organization. The information will be submitted to FEMA to determine eligibility for a Public Assistance grant or whether the PNP should be referred to SBA for disaster loan assistance. 

    Applicants may apply online and receive additional disaster assistance information at SBA.gov/disaster.  Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    The filing deadline to submit applications for physical property damage is Dec. 5, 2024. The deadline to submit economic injury applications is July 7, 2025. 

    ###

    About the U.S. Small Business Administration 

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.   

    MIL OSI USA News

  • MIL-OSI USA: Press Briefing by Press Secretary Karine Jean-Pierre and National Security Communications Adviser John  Kirby

    US Senate News:

    Source: The White House
    James S. Brady Press Briefing Room
    1:42 P.M. EDT
    MS. JEAN-PIERRE:  All right.  Good afternoon, everyone. 
    Q    Good afternoon.
    MS. JEAN-PIERRE:  I have just one thing at the top, and then I’ll hand it over.
    So, today, as part of the White House Initiative on Women’s Health Research, First Lady Jill Biden announced $110 million in awards from the Advanced Research Projects Agency for Health — for Health, ARPA-H, to accelerate transformative research and development in women’s health care.
    These new ARPA-H awardees will spur innovation and advance bold solutions to diseases and conditions that affect women uniquely, disproportionately, and differently.
    In less than a year since the president and the first lady launched the effort, the White House Initiative on Women’s Health Research has galvanized nearly one — nearly a billion dollars in funding for women’s health research.
    And now, I’m going to turn it over to my NSC colleague, Admiral John Kirby, who will talk to you more about the news of North Korea’s — Korean soldiers traveling to Russia, today’s historic announcement of the — of the use of frozen Russian sov- — sovereign assets to support Ukraine, and other foreign policy matters. 
    Admiral. 
    MR. KIRBY:  Thank you very much, Karine. 
    Good afternoon, everybody. 
    Q    Good afternoon.
    MR. KIRBY:  So, just before I kick off on those issues, I do want to start off by extending our thoughts to the victims of the horrible terrorist attack in Ankara, Turkey, this morning. 
    Our prayers are with all of those affected and their families and, of course, also the people of Turkey during this difficult time.
    Now, Turkish authorities, as they’ve said, are investigating this as a possible terrorist attack.  And while we don’t yet know the motive or who is exactly behind it, we strong — strongly condemn this — this act of violence.
    Now, I think, as you have all heard earlier this morning, we have seen the public reporting indicating that North Korean soldiers are traveling to Russia to fight against Ukraine.  We’re working closely with our allies and partners to gain a full understanding of this situation, but today, I’m prepared to share what we know at this stage.
    We assess that between early- to mid-October, North Korea moved at least 3,000 soldiers into eastern Russia.  We assessed that these soldiers traveled by ship from the Wonsan area in North Korea to Vladivostok, Russia.  These soldiers then traveled onward to multiple Russian military training sites in eastern Russia where they are currently undergoing training.
    We do not yet know whether these soldiers will en- — enter into combat alongside the Russian military, but this is a certain — certainly a highly concerning probability.
    After completing training, these soldiers could travel to western Russia and then engage in combat against the Ukrainian military.  We have briefed the Ukrainian government on our understanding of this situation, and we’re certainly consulting closely with other allies, partners, and countries in the region on the implications of such a dramatic mov- — move and on how we might respond. 
    I expect to have more to share on all of that in the coming days.
    For the time being, we will continue to monitor the situation closely.  But let’s be clear, if North Korean soldiers do enter into combat, this development would demonstrate Russia’s growing desperation in its war against Ukraine. 
    Russia is suffering extraordinary casualties on the battlefield every single day, but President Putin appears intent on continuing this war.  If Russia is indeed forced to turn to North Korea for manpower, this would be a sign of weakness, not strength, on the part of the Kremlin. 
    It would also demonstrate an unprecedented level of direct military cooperation between Russia and North Korea with security implications in Europe as well as the Indo-Pacific.
    As we have said before, Russia’s cooperation with the North Korean military is in violation of multiple U.N. Security Council resolutions which prohibit the procurement of arms from North Korea and military arms training.  This move is likewise a violation.
    At President Biden’s direction, the United States continues to surge security assistance to Ukraine.  In just the past week, which I think you’ve seen, the United States has announced more than $800 million in security assistance to meet Ukraine’s urgent battlefield needs.
    Now, looking ahead, the United States is on track to provide Ukraine with hundreds of additional air defense interceptors, dozens of tactical air defense systems, additional artillery, significant quantities of ammunition, hundreds of armored personnel can- — carriers and infantry fighting vehicles, and thousands of additional armored vehicles, all of which will help keep Ukraine effective on the battlefield.
    And in coming days, the United States will announce a significant sanctions tranche targeting the enablers of Russia’s war in Ukraine located outside of Russia.
    The Ukrainian military continues to fight bravely and effectively, and President Biden is determined to provide Ukraine with the support that it needs to prevail.  To that end, the president announced today that of the $50 billion that the G7 committed to loan Ukraine back in June, the United States will provide a loan of $20 mil- — $20 billion.  The other $30 billion in loans will come from a combination of our G7 partners, including the European Union, the United Kingdom, Canada, and Japan. 
    Now, this is unique.  Never before has a multilateral coalition frozen the assets of an aggressor country and then harnessed the value of those assets to fund the defense of the aggrieved party, all while respecting the rule of law and maintaining solidarity. 
    These loans will support the people of Ukraine as they defend and rebuild their country, and it’s another example of how Mr. Putin’s war of aggression has only unified and strengthened the resolve of G7 countries and our partners to defend shared values.
    And — yep, that’s it.  Thank you.  (Laughter.)  Sorry.  I had an extra page in there, and I wasn’t sure where it was going.  So —
    MS. JEAN-PIERRE:  Go ahead, Aamer.  
    Q    Does the pre- — is the assessment that the presence of North Korean troops can have a meaningful trajectory on thou- — the war?
    And then, secondly, you’ve said earlier even that it shows a sign of desperation on the Russians, but does it also demonstrate North Korea’s commitment to this burgeoning alliance with Russia?  And is that, in of itself, a broadening and discouraging concern for America?
    MR. KIRBY:  So, on your first question, too soon to tell, Aamer, what kind of an impact these troops can have on the battlefield, because we just don’t know enough about what the intention is in terms of using them.  So, I — I think that’s why I said at the top, we’re going to monitor this and watch it closely.
    To your second question: yeah, absolutely.  As we’ve also said, yes, I’ve called this a sign of desperation and a sign of weakness.  It’s not like Mr. Putin is being very honest with the Russian people about what he doing here.  I mean, Mr. Peskov, his spokesman, just the other day dec- — denied knowing anything about it.
    But — but we’ve also talked many, many times about the burgeoning and growing defense relationship between North Korea and Russia and how reckless and dangerous we think that is, not only for the people of Ukraine — and clearly we’ll watch to see what this development means for them — but also for the Indo-Pacific region.
    MS. JEAN-PIERRE:  Go ahead, Nadia.
    Q    Thank you.  With the U.S. diplomats in the region, Mr.  Hochstein in Lebanon and the Secretary of State in Saudi Arabia now before Israel, do you be- — do you believe there is a chance now for the ceasefire to be back on the table? 
    And do you believe that with the demise of Mr. Sinwar and Hassan Nasrallah, you have better chances or worse chances for somebody to negotiate with?
    MR. KIRBY:  The ceasefire you’re talking about, I’m assuming, is with Gaza.
    Q    Well, both.  I mean, you have Lebanon and you have Gaza —
    MR. KIRBY:  Yeah.
    Q    — implementation 1701 and in Gaza.
    MR. KIRBY:  I mean, look, the short answer to your question, Nadia, is — is yes.  And we wouldn’t be s- — we wouldn’t be engaged in this — these diplomatic efforts if we didn’t think there was still an opportunity here to get a ceasefire — a ceasefire for Gaza that brings the hostages home and increases humanitarian assistance, and certainly a ceasefire between Israel and — and Hezbollah. 
    And as for the — the implication that the — the deaths of the two leaders, Nasrallah and Sinwar, as President Biden said last week, that does open up — we believe opens up, should open up an opportunity to try to get there. 
    But I don’t want to sound too sanguine here.  I’ll let Secretary Blinken speak for his travels.  He’s still on the road.  He talked about it a little bit today that, you know, they had good, constructive conversations, specifically with respect to — to Gaza while he was in Israel.  But there’s still a lot of work before us.
    Q    Okay.  And one more, quickly.  The number of civilians killed in Gaza was 779 in the last 20 days, especially in Jabalia, and the total number is 100,000 between the dead and the wounded.  Ninety percent of Gaza is destroyed.  Does the U.S. still believe that Israel’s strategy in Gaza is working, and do you still support it?
    MR. KIRBY:  We still support Israel’s right and responsibility to defend itself against these threats, including the continued threat of Hamas.  And we still urge Israel to be mindful — ever mindful of civilian casualties and the damage to civilian infrastructure, and we’re going to continue to work with them to that end.
    Q    Has the U.S. made an assessment about the type of weapons training or what type of training the North Korean soldiers are undergoing in Russia that could potentially be used in Ukraine? 
    And does this represent a new type of an — an agreement, in terms of an information-sharing agreement between the North Koreans and the Russians?
    MR. KIRBY:  I don’t believe we have a very specific assessment at this time of the exact nature of all the training.  There’s — there’s three sites that we assess right now that the — this first tranche of about 3,000 are being trained. 
    I — I think I could go so far as to say that, at least in general terms, it’s — it’s basic kind of combat training and familiarization.  I think I’ll go — I could go as far as that and no further. 
    But, as I also said, we’re going to monitor this and watch this closely.  And obviously, if we have more information that we can share with you, we certainly will.
    To your second question about information-sharing, as I’ve said before, in answer to — to Aamer, we have been watching this relationship grow and deepen now for many, many months.  And the — the question that we’re asking ourselves — and we don’t have an answer for right now — is: What does Kim Jong Un think he’s getting out of this?
    And so, you talked about information-sharing.  I mean, they’re — maybe that’s part of this.  Maybe it’s technology.  Maybe it’s capabilities. 
    We don’t have a good sense of that.  But that’s what’s so concerning to us, is — is not only the concern for the impact on the war in Ukraine but the impact that this could have in the Indo-Pacific, with Kim Jong Un benefiting to some degree.
    Q    Can you talk about that just briefly?  Like, how significant is this for U.S. allies in the region and the U.S. as a whole?
    MR. KIRBY:  It could be significant.  Again, we don’t know enough right now. 
    So, when you say “region,” I think you mean Indo-Pacific.  Until we have a better sense of what the North Koreans at least believe they’re getting out of this, as opposed to what they actually get, it’s hard to know and to put a metric on exactly what the impact is in the Indo-Pacific.
    But it is concerning.  It’s been concerning.  Certainly, this development — this — this willingness of — of Kim to literally put skin in the game here, soldiers in Russia for the potential deployment — and we haven’t seen them deployed, but for the potential deployment — certainly would connote an expectation that he thinks he’s getting something out of this.
    MS. JEAN-PIERRE:  Go ahead, Selina.
    Q    You mentioned that the U.S. is discussing how we would possibly respond.  What are the possibilities for how the U.S. could respond to this?
    MR. KIRBY:  Well, for one thing, we’re going to continue to surge security assistance, as I just mentioned in my — my topper.  And you’re going to continue to see — the president has made it clear that we’re going to continue to provide security assistance all the way up to the end of his administration, for sure.  So, you’re going to see that continue to flow, and we’re talking to allies and partners about what the right next steps ought to be. 
    I’m not at liberty today to go through any specific options, but — but we’re going to — we’re going to have those conversations, and — and we have been.
    Q    And China is a critical trading partner to North Korea.  What’s the U.S. assessment for how China is looking at all of this?
    MR. KIRBY:  We don’t know how President Xi and the Chinese are looking at this.  One would think that — if you take their comments at face value about desiring stability and security in the region, particularly on the Korean Peninsula, one would think that they’re also deeply concerned by this development.
    But you can expect that we’ll be — we’ll be communicating with the — with the Chinese about this and certainly sharing our perspectives to the degree we can and — and gleaning theirs. 
    Q    And local South Korean press is reporting that, according to intelligence, these troops — North Korean troops lack understanding of modern warfare, such as drone attacks, and it’s anticipated there will be a high number of casualties when deployed to the front lines.
    MR. KIRBY:  I — too soon to know.  I mean, we — we don’t really know what they’re going to be used for or where they’re going to — if they’re going to — if they’re going to deploy, where they’re going to deploy and to what purpose. 
    I can tell you one thing, though.  If they do deploy to fight against Ukraine, they’re fair game.  They’re fair targets.  And the Ukrainian military will defend themselves against North Korean soldiers the same way they’re defending themselves against Russian soldiers. 
    And so, the — the possibility that there could be dead and wounded North Korean soldiers fighting against Ukraine is — is absolutely real if they get deployed. 
    MS. JEAN-PIERRE:  Go ahead, M.J.
    Q    Just to clarify something you said earlier about what Kim Jong Un possibly gets out of this.  As far as you know, has he gotten anything in return?
    MR. KIRBY:  Well, I mean, from this particular move, I can’t speak to that, M.J.  I — I don’t think we have seen any specific, you know, quid — quid pro quo with respect to this provision of troops. 
    But we know that — that he and Mr. Putin have, again, been growing in their defense relationship.  And we know Mr. Putin is — has been able to purchase North Korean artillery.  He’s been able to get North Korean ballistic missiles, which he has used against Ukraine.  And in return, we have seen, at the very least, some technology sharing with North Korea. 
    But what this particular development means going forward, we just don’t know.  We’re going to have to watch that. 
    Q    And do you know if this came about because Putin specifically first asked for help, or whether it’s that Kim Jong Un offered the help first? 
    MR. KIRBY:  Don’t know.  Don’t know what precipitated it, but I think it’s important to remember that in the three-plus years that he’s been fighting in — in and around Ukraine, Mr. Putin and — and his military has suffered 530,000 casualties.  And as we’re speaking today, he’s losing, casualties alone — and that’s killed and wounded — 1,200 — 1,000 to 1,200 per day. 
    Now, 530,000 is a lot.  I mean, there were — in the American Civil War, there were, like, 620,000 killed, just to put this into some perspective.  This is three years fighting in Ukraine.  Five hundred and thirty [thousand] casualties is — is a lot. 
    And he hasn’t been fully transparent with the Russian people about this.  And he hasn’t been transparent at all with the Russian people about this particular move, about br- — bringing in North Korean soldiers.  So, that he has to farm out the fighting to a foreign country, I think, speaks volumes about how much his military is suffering and — and how uncertain he believes, how untenable he believes his — his situation is. 
    Q    And I guess, just if you had to guess, how would the training — what would the training even look like, given the language barrier?  And once these North Korean soldiers are deployed, like, what would the command structure even look like, given —
    MR. KIRBY:  It’s a great question.  I — I wish we had an answer to it.  You’re — you’re not wrong to highlight the language barrier.  I mean, these are — these aren’t even similar languages.  They’re — and they are going to have to overcome that.  It’s not like they have a long, productive history of working together as two militaries, even at all.  So, that’s going to be a challenge. 
    Command and control is going to be a challenge.  And this is not a challenge that the Russians have even solved amongst themselves.  They’re still having command and control challenges: logistics and sustainment, getting things to the battlefield, keeping their troops in the field.  They haven’t solved that for their own soldiers.  So, they’re going to have to figure that out here too, if, in fact, they deploy.  We haven’t seen that. 
    So, there are — there are some pretty big challenges they’re — they’re going to have to overcome. 
    Q    And I have a non-Ukraine question.  Do you think that Donald Trump meets the definition of a fas- — fascist?
    MR. KIRBY:  That — I’m going to —
    MS. JEAN-PIERRE:  We got to move on.  (Laughs.)
    MR. KIRBY:  Yeah, I’m —
    MS. JEAN-PIERRE:  Go ahead, Michael.
    MR. KIRBY:  — I’m not going to talk about that stuff.
    Q    John, there — there’s concern among Democrats on the Hill that Donald Trump’s team has not entered into these critical transition agreements with the White House that could potentially, in their words, endanger national security.  Is that a concern of yours?
    MR. KIRBY:  Well, look, with a caveat that I’ll — I’m going to defer to Karine on anything to do with the election and — and the transition.  That’s really for her. 
    All I’ll say is that no matter how things play out in the election, the National Security Council, under Mr. Sullivan’s leadership, is and will make sure we’re ready for proper transition handover. 
    Q    And there are intelligence officials who have warned that foreign adversaries might be looking to stoke violence in the next 13 days ahead of the election.
    MR. KIRBY:  I saw the DNI assessment, yeah. 
    Q    What are you doing in preparation?
    MR. KIRBY:  Well, we’re working hard across the interagency, as you might expect we would, to share information not only inside the — at the federal level but working very hard to make sure we’ve got good handshakes and — and information sharing at state and local levels as well. 
    That’s the last thing we want, of course, is to see any violence or protest activity that — that leads to intimidation and that kind of thing.  So, we’re working hard, again, with local and state officials.
    MS. JEAN-PIERRE:  Need to start wrapping it up.  Go ahead, sir.  Yeah.
    Q    Thank you.  So, would North Korea’s possible engagement in combat in Ukraine trigger a bolder move from the White House, like decision to lift the restrictions on usage of American weapons?
    MR. KIRBY:  Yeah, again, number one, we’re monitoring this closely, and that’s where we are right now.  I came and gave you a very honest assessment of exactly where we are, and we just don’t know if these troops are going to be deployed against Ukraine in combat and, if so, where, when, and how. 
    So, number one, we’re monitoring this closely.  I don’t have any policy decisions or options to speak to today.  I can tell you the last thing I’ll say is that there’s been no change to the president’s policy when it comes to what we’re providing Ukraine and — and how they’re using it.
    MS. JEAN-PIERRE:  Go ahead, Jacqui.
    Q    Thank you, Karine.  John, why not?  Why not green-light the long-range missiles for Ukraine’s use, which is Zelenskyy’s number one ask, as you’re sounding the alarm about what could have far-reaching implications if North Korean soldiers go into Ukraine? 
    MR. KIRBY:  Well, for one thing, Jacqui, we don’t exactly know what these guys are going to do. 
    Q    What else could they be there for?
    MR. KIRBY:  We don’t know what they’re going to do.  We don’t know if they’re going to deploy into combat or not.  We don’t know, if they do, in what strength.  We certainly don’t have a sense of what capability they might be able to bring to the field with them.  Now —
    Q    Doesn’t this seem, though, like —
    MR. KIRBY:  Hang on, now.  Just a second.
    Q    — we were — a couple years ago, they were staged — you had Russian troops staged on the Ukrainian border, and this administration was saying, “We don’t know if they’re going to go in.  We don’t want to impose any sanctions.”  We didn’t do it ahead of time. 
    MR. KIRBY:  No, no, no, no, no, no.
    Q    Where — why is there not a consequence first?
    MR. KIRBY:  Well, first of all, let’s not rewrite history, Jacqui.  We — we were the first country to go out publicly and say, “Here’s what we think the Russians are going to do.  Here’s the timeline.”
    Q    But didn’t do anything about it. 
    MR. KIRBY:  That is not true, Jacqui. 
    Q    There was no preemptive sanction.  Nothing. 
    MR. KIRBY:  Jacqui, that is not true.  It is true we didn’t levy sanctions originally because we were hoping that the threat of sanctions might deter or dissuade Mr. Putin.  You lay sanctions on before the man makes a decision, then he might as well just go ahead and do it. 
    Q    Well, he did it anyway.
    MR. KIRBY:  And we — and we did levy sanctions on him — heavy sanctions — not just us but around the world. 
    Number two, we mobilized support for Ukraine even before Mr. Putin decided to step across that line.  And no country — no country has done more than the United States to make sure Ukraine is ready.  So —
    Q    Well, why not do something —
    MR. KIRBY:  — let’s not —
    Q    — to prevent —
    MR. KIRBY:  Wait, wait.  Jac- —
    Q    — this from happening? 
    MR. KIRBY:  Jacqui, let me finish the second question, and then we’ll get your third one. 
    So, let’s not rewrite history.  The United States didn’t sit idly by here.  We’ve been Ukraine’s staunchest and most prolific supporter in terms of security assistance.
    And as for the policy decision, the — the president remains and we all remain in direct contact with our Ukrainian counterparts.  We’re talking to them over what the — what they need.  As I said, we’ve just announced $800 million more, and there’ll be more coming in security assistance. 
    I just don’t have any policy changes to —
    Q    But why —
    MR. KIRBY:  — to speak to today. 
    Q    Why would you not u- — put a restriction on the type of target that can be hit, rather than the distance from a border that obviously Russia doesn’t recognize?  And you’ve got training happening with North Korean troops, I would assume, on the types of military installations that would be fair game if that decision was made. 
    MR. KIRBY:  Yeah, we’ll see —
    Q    That —
    MR. KIRBY:  We’ll see — we’ll see what the Russians and North Koreans decide to do here.  As I said earlier, if these North Korean soldiers decide to join the fight against Ukraine, they will become legitimate military targets. 
    MS. JEAN-PIERRE:  All right, Jacqui.  We got to go.
    Aurelia.
    Q    Yeah.  Thank you.  John, would you still describe the Israeli operation in Lebanon as targeted?
    MR. KIRBY:  I’m sorry, I do-
    Q    Yeah.  The Israeli strikes on Lebanon, would you still describe them as targeted?
    MR. KIRBY:  Again, I’m not going to get into scorecarding each and every strike that the Israelis take.  I’ll just say a couple of things.  They have a right to defend themselves.  There are legitimate threats that Hezbollah still poses to the Israeli people.  I mean, rockets and missiles are still being fired at Israeli cities. 
    So, let’s not forget what Hezbollah continues to be able to do.  That’s number one. 
    Number two, we have said many, many times that we don’t support daily, you know, strikes into heavily populated areas, and that remains the case today.  We still oppose, you know, daily strikes into densely populated areas —
    Q    But they still are coming — the strikes.
    MR. KIRBY:  — and we have had those conversations.  Secretary Blinken has had that exact conversation when he was in Israel for the last couple of days.  We’ll continue to press the Israelis on that. 
    MS. JEAN-PIERRE:  Go ahead.
    Q    Hi.  So, the interest from the frozen assets, does it apply only to the European Union or also the U.S. assets?
    MR. KIRBY:  It is — it’s for all the frozen assets.
    Q    Also in the U.S.?
    MR. KIRBY:  I believe so.  I believe so.
    Q    Because this morning, I heard Daleep Singh said just European Union, so I wasn’t sure. 
    MR. KIRBY:  Okay.  You know what?  Let me take the question.  When I — I can’t even balance my checkbook at home, so — (laughter).
    MS. JEAN-PIERRE:  Go ahead.
    Q    Thank you.  I wanted to ask about Kursk specifically with the North Korean troops in Russia.  Russia and North Korea have this mutual security pact.  If they were to use North Korean troops against Ukrainians in Kursk, would it be legitimate to try to reclaim sovereign territory, or would that be seen as an escalation in the war against Ukraine?
    MR. KIRBY:  Again, I don’t want to get ahead of where we are right now and hypothesize what these troops may or may not be doing and, if the Russians are going to deploy them, where they’re going to deploy them, whether it’ll be inside Russia or inside Ukraine. 
    Let me just please go back to what I said before.  If these North Korean troops are employed against Ukraine, they will become legitimate military targets. 
    MS. JEAN-PIERRE:  All right.  Janne, you have the last one. 
    Q    Thank you very much.  (Inaudible) questions. 
    MS. JEAN-PIERRE:  Well, you’re about to jump out of your seat, so —
    Q    Thank — thank you, John.
    MR. KIRBY:  This — this seems like a fair day for Janne.
    MS. JEAN-PIERRE:  That’s true.  Truly. 
    Q    On same — same topic, on North Korea.  The chairman of the House Intelligence Committee recently sent a letter to President Biden requesting a briefing regarding the seriousness of North Korea’s troops deployment and the neglect of the Korean Peninsula issue.  What is the White House’s response to this?
    MR. KIRBY:  Well, we’ll respond.  We’ll respond as — as appropriate to the chairman, and we won’t do that from the podium here in the briefing room.  We’ll do it appropriately with him and his staff.
    I’ll just say — and hopefully my being here today and the — my statement at the top should reflect how seriously we’re taking this issue and how closely we’re going to monitor it.  We recognize the potential danger here, and we’re going to be talking to allies and partners, including the Ukrainians, about what the proper next steps are going to be. 
    But as for our response to the chairman, I’ll let that stand in legislative channels.
    Q    Last quick one.  Your colleague said at the State Department briefing that the United States does not reflect other countries’ intelligence analyses.  So, what is your assessment of intelligence cooperation with allies at this —
    MR. KIRBY:  What — what did my colleague at the State Department say?
    Q    Said that — at the briefing that the United States does not reflect other countries’ intelligence analyses.
    MR. KIRBY:  About — about —
    Q    About the —
    MR. KIRBY:  — the North Korean troops?
    Q    Yeah, about the North Korean troops, so —
    MR. KIRBY:  I just shared with you — to- — today’s opening statement was a downgrade of U.S. intelligence of what — what we’re seeing.  And I think you can see similarities between what I said today and what our South Korean counterparts have — have said.  Ukrainian intelligence has — has released information very, very similar. 
    And again, we’re — you know, today isn’t the end of this conversation.  It’s — it’s, quite frankly, the beginning of the conversation that we’re going to be having with allies and partners, including through the intelligence community. 
    MS. JEAN-PIERRE:  All right.  Thank you so much, Admiral. 
    MR. KIRBY:  Thank you. 
    MS. JEAN-PIERRE:  Go ahead, Toluse.
    Q    Thanks, John.
    MR. KIRBY:  Thank you.
    MS. JEAN-PIERRE:  Thank you.  Sorry, guys.  Give me one second. 
    Let’s let Toluse take — I know he’s been waiting patiently on the sides- — sideline. 
    We don’t have much time because I have to be in the Oval in about 20 minutes, but go ahead.
    Q    Can I ask about the McDonald’s outbreak, the E. coli outbreak? 
    MS. JEAN-PIERRE:  Yeah.
    Q    And this follows a couple of big ones that we’ve seen over the summer, including Boar’s Head.  I think there’s another nationwide one.  Is the president tracking this?  And more importantly, how confident should Americans feel about the food supply right now?
    MS. JEAN-PIERRE:  So, what I would say is the administration’s top priority — its top priority is to make sure that Americans are safe.  And so, we are taking this very seriously.  We’re monitoring the situation. 
    CDC, as it relates to McDonald’s specifically, is working to determine the source of the outbreak, as we speak abou- — as you asked me about the E. cola — E. coli outbreak.  And so, what I would suggest is that families, they need to and they must follow the latest CDC guidance. 
    Obviously, we’re aware.  The president is — is also aware.  And going back to this particular outbreak with McDonald’s, I understand that the company has halted sales of product to protect customers, and CDC is certainly in touch with — with local authorities to — to prevent infection. 
    So, look, we’re always concerned when we hear these types of — these types of situations — right? — poten- — outbreaks.  And so — and the president wants to make sure that the American people are safe.  So, it is a — it is certainly a priority for us, and CDC is on top of this and looking into it.
    Q    And then just one more.  Any reaction to Jill Stein asserting the U.S. and the UK have blocked a peace agreement between Russia and Ukraine?
    MS. JEAN-PIERRE:  I have not seen those reporting.  I’m not going to respond to a — a political candidate in — for this — for this —
    Q    Well, it seems (inaudible) — it’s a factual thing that’s —
    MS. JEAN-PIERRE:  I — I have not even seen the — the comments that —
    Q    Okay.
    MS. JEAN-PIERRE:  — you are mentioning to me, so I — I can’t give you an honest response from here.
    So, go ahead, M.J.
    Q    Karine, what did the president mean when he said last night, about Donald Trump, “We got to lock him up”? 
    MS. JEAN-PIERRE:  So, look, and I — the president spoke to — about this very clearly as well in his statement, and he — and he said he meant, “lock him out” politically — politically lock him out.  That’s what he said, and that’s what we have to do.  That was the part of his quote that he said last night while he was in — in New Hampshire. 
    Look, let’s not forget, this is a president that has not –never shied away from being very clear and laying down what is at stake in this election. 
    I’m going to be really m- — mindful in not speaking about 2024 election that’s just a — less than two weeks away. 
    But this is just speaking to what the president said last night.  He made clear — he made very clear yesterday that he was referring to defeating — to defeating Donald Trump.  That is what he was talking about.  He said, politically — politically, lock him — lock him out.  That is what he was referring to. 
    Q    Well, he first said twice, “lock him up.”  So, you’re saying —
    MS. JEAN-PIERRE:  And then — and —
    Q    — when he said “lock him up,” he meant, defeat Donald Trump?
    MS. JEAN-PIERRE:  Well, it’s not what saying.  It’s what he said.  He said —
    Q    Well, when —
    MS. JEAN-PIERRE:  — to the au- —
    Q    — he clarified.
    MS. JEAN-PIERRE:  Wa- — wait. 
    Q    But he initially said —
    MS. JEAN-PIERRE:  He — he — right.  
    Q    — “lock him up.”
    MS. JEAN-PIERRE:  Exactly, he clarified himself.  He wanted to make sure that things were put into context.  He wanted to make sure that it — while we are — you know, while not just New Hampshire folks that were there were going to see it but also the Americans who are watching and pay attention to what the president is saying.  He wanted to put it into context.  And he, himself — this is not me; this is the president himself going back to explain — to explain — to say that he was talking about politically — politically locking him out. 
    Q    Is the president aware of John Kelly’s assertion that Donald Trump meets the definition of a fascist and that Trump wanted the kinds of generals Hitler had?
    MS. JEAN-PIERRE:  I mean, look, you have heard from this president over and over again about the threats to democracy, and the president has spoken about that.  You’ve heard from the former president himself saying that he is going to be a dictator on day one.  This is him, not us.  This is him. 
    And it’s not just all — it’s not just us, the White House, saying this.  You’ve heard it from officials — former officials that worked for the former president say this as well. 
    So, you know, do we agree — I know that the — the vice president just spoke about this.  Do we agree about that determination?  Yes, we do.  We do. 
    Let’s not forget — I will point you to January 6th.  What we saw on January 6th: 2,000 people were told to go to the Capitol to undo a free and fair election by the former president.  It was a dark, dark day in our democracy and a dangerous one.  We have people who died because of what happened on January 6th.  And, you know, we cannot forget that.  We cannot forget that.
    And so — and I will add — I will add this, that — and I can’t believe I even have to say this — but our nation’s veterans are heroes.  They are heroes.  They’re not losers or suckers; they are heroes. 
    And to be praising Adolf Hitler is dangerous, and it’s also disgusting. 
    Q    So, just to be clear, when you said, “we do” agree, President Biden believes that Donald Trump is a fascist?
    MS. JEAN-PIERRE:  I mean, yes, we have said — he said himself — the former president has said he is going to be a dictator on day one.  We cannot ignore that.  We cannot.
    And we cannot ignore or forget what happened on January 6th, 2021.  That is real.  Real people were affected by this — law enforcement who were trying to protect — protect the Capitol, protect law — elected officials in the Capitol, congressional members, senators, House members.  Their lives were ruined because of that day, because 2,000 people — again, 2,000 people were told by the former president to go there to find the former vice president to stop a free and fair election.  That is what — that is what happened. 
    Some of you — some of your colleagues were there, reported it, and saw it for yourself. 
    We cannot forget that. 
    Go ahead.
    Q    Karine, I mean, you talk about the context of the president’s comments yesterday.  I want to put them in the fuller context as well.  The president went to New Hampshire to make a policy argument against Republicans on the issue of prescription drugs, but the majority — more of his comments yesterday were really some of the most dire warnings we’ve heard from this president yet about a return to a Donald Trump presidency and what it would mean — could mean for this country.  He talked about world leaders pulling him aside, saying, “He can’t win.”  He talked about the concern — what it would mean for future generations of America. 
    How concerned is the president about — at this point, about the state of the race?  Is he worried that Trump is on a path to victory at this point?
    MS. JEAN-PIERRE:  So, look, I’m not going to talk about the state of the race.  You heard from the president.  You just laid out very clearly about what the president talked about yesterday in New Hampshire.  He laid out what his thoughts were.  He laid out what the stakes are for this country, and this is somebody who cares, clearly, very deeply about the future of this country.
    And so, I’m not going to get into what he thinks about this — the race in this current moment.  That is not something that I’m here to do.  I am not — I am no longer a political pundit.  I am the White House press secretary.  I speak for the president, but obviously I cannot speak to the 2024 election.
    And you did talk about something else — right? — when you talked about what he went to do on the official side.  And I would read you some quotes here — some headlines that we — that we saw in New Hampshire today from New Hampshire press, which I think is really important: “Biden, Sanders tout prescription drug cost-savings at New — New Hampshire event.”  Another one, “Biden and Bernie Sanders highlight lower prescription drug costs in New Hampshire stop.”  That is important. 
    The president wanted to go to New Hampshire to talk about what he and the vice president have been able to do in more than three and a half years: lowering prescription drugs, beating Big Pharma.  He talked about the Inflation Reduction Act.  By the way, no Republican voted for that.  Now it is popular with Democrats and Republicans, and this is something that is going to change people’s lives. 
    And so, that’s what he was there for.  He talked about — let’s not forget, what — what they’ve been — oth- — other things they’ve been able to do, whether it’s the bipartisan gun violence protection — being able to do that in a bipartisan way, and dealing with COVID that t- — put our economy in a downturn.  And this president has been able to empower — powering the economy, and we are now leading as a country in the world when it comes to the economy.
    So, I think he was able to do both things.  I think he was able to speak his mind on — on the political, you know, nature of where we are right now, which he can — obviously, he spoke to.  And I think people in New Hampshire got a sense of what the president is trying to do on behalf of them in talking about lowering costs.  We saw that in — in the New Hampshire papers.  So, it broke through, and I think that’s important. 
    Q    You were with the president last week in Germany —
    MS. JEAN-PIERRE:  Yes.
    Q    — when he says he had these conversations with world leaders expressing their dire concern about the election here.  What has been his response to those world leaders about that?
    MS. JEAN-PIERRE:  I — I’m not going to get into private diplomatic conversations, and I will just leave it there.
    Q    And then, I’ll ask you — we — NBC News is reporting that the vice president is likely to spend election night here in Washington, perhaps at her alma mater of Howard University.  Do we have an understanding yet of where the president will be —
    MS. JEAN-PIERRE:  (Laughs.)
    Q    — and when — how he plans to vote?
    MS. JEAN-PIERRE:  As soon as — you all know, we certainly will share that with all of you. 
    I will say is that the president is certainly looking forward to casting his ballot in Delaware.  And so, once we have the full information on what his day is going to look like or what the last couple of days leading up to November 5th will look like, we certainly will share that with all of you.
    Go ahead.
    Q    Since we’re talking about scheduling, it is traditional for the president to hold a press conference after —
    MS. JEAN-PIERRE:  Oh boy.  I knew that was coming.  (Laughter.)
    Q    Can’t stop.  Won’t stop.
    MS. JEAN-PIERRE:  You were- — you weren’t here for the — the drop-by.  Were you here for the drop-by?
    Q    Yes, I was. 
    MS. JEAN-PIERRE:  Oh.  It was great.
    Q    It was great.  We’d love to see him again.
    MS. JEAN-PIERRE:  Yeah.
    Q    So, the — and —
    MS. JEAN-PIERRE:  And you know what?  He had a really good time.  He enjoyed — he enjoyed it.
    Q    So, just an —
    Q    Come on back.  (Laughter.)
    Q    — open invitation for the president to follow tradition and do a press conference after the election, which I think —
    MS. JEAN-PIERRE:  I —
    Q    — is standard and important.
    MS. JEAN-PIERRE:  I — I totally hear that, Tam, and I know it is a tradition. 
    I — I don’t want to get ahead of what the schedule is going to look like.  As we know, in less than two weeks, we will have an important election.  Obviously, I’m not speaking about that election specifically, but we want to share — we will share more as we get closer.  And we — we certainly are tracking that tradition, and we’ll certainly have more to share. 
    Q    Are we going to see him with the vice president much in the next couple of weeks?
    MS. JEAN-PIERRE:  I mean, look, I — I know you all have asked this question of him.  You’ve asked this question of me.  They have, as you know, campaigned together.  They’ve done official events together in the past just couple of weeks. 
    They speak regularly.  And — and I would say the president — you’ve heard the president just, you know, tout how proud and how he thinks she will be a great leader on day one, which is –he also said in 2020, which is why he chose her as his running mate, and he has said as well, this was the best decision that he’s made.  And understands that she’s going to cut her own path.  Said this himself just last week when he was in — in Philadelphia. 
    Don’t have anything to share, again, on the schedule.  I know this is all part of a scheduling question, and we certainly will have more to share as the days — as the days — as you know, I mean, one day is like an eternity in — in this space, as you know.  (Laughs.)  And so, less than two weeks is — feels like so far away.  So, we will have more to share, for sure.
    Go ahead, Selina.
    Q    I just want to follow up on M.J.’s question. 
    MS. JEAN-PIERRE:  Yeah.
    Q    So, did the president actually read former Marine General Kelly’s comments or listen to them?  And did you —
    MS. JEAN-PIERRE:  So —
    Q    — do you know how he reacted after doing so?
    MS. JEAN-PIERRE:  So, look — I mean, look, I just gave a really good — I think a good sense of the — what the president has said about our reaction here from the White House.  The president is aware of John Kelly’s comments.  And I gave you a reaction as part of the — as — as the president’s White House press secretary.  And what I’m saying to you today is something that the president has said over and over and over again and repeated. 
    And let’s not forget the words that we have heard from the former president.  And it matters here, because we’re talking about our democracy.  We’re talking about what’s at stake here with our democracy.  And when you have a former president saying that they will be a dictator on day one, that is something that we cannot forget. 
    And so, you know, the president has spoke- — spoken about this and given speeches on this.  And that’s why I continue to point to January 6th, 2020 — -21 — 2021, because it was — it’s something that we cannot forget, a dark day on our democracy — a dark day on our democracy, because of what was — what — what occurred — what occurred.
    Q    Was the president surprised by any of the comments from Kelly?
    MS. JEAN-PIERRE:  No, not at all.  I mean, again, the president has made comments and spoken about this over and over again.  So, no.  I will say no. 
    Go ahead.
    Q    Thanks, Karine.  Elon Musk has been, you know, campaigning with former President Donald Trump, and he is offering $1 million to voters.  I just was wondering: Has the president expressed any concern to, you know, this interference by Elon Musk?  And I don’t know if he — you know, his — the administration maybe has any plans or has discussed maybe how to sort of maybe move forward with what’s El- — Elon Musk is doing with — with the $1 million.
    MS. JEAN-PIERRE:  So, on — on this particular question, I’m going to have to refer you to the FEC.  I just have to be — that one, I — I — that’s a place that I’m going to have to refer you.  I can’t speak to it beyond that. 
    Q    But has the president mentioned it at all, Elon Musk or —
    MS. JEAN-PIERRE:  He’s aware of it.  He’s aware of it.  That I can tell you.  I just can’t speak to it beyond that.  I have to refer you to the FEC.
    Go ahead, Jared. 
    Q    You talk and you’ve taken questions today, and obviously throughout the — the presidency, President Biden has talked a lot about democratic institutions.  I’m just curious if between now and Election Day, the president is going to speak sort of more broadly about the confidence in the votes being counted accurately.
    MS. JEAN-PIERRE:  Well, the president has talk — talked about this.  He believes in our institution.  He believes in — in — this will be a free and fair election.  He’s talked about this.  We have to give the American people, who some of them are voting right now — to make sure that they have the confidence in their vote and how important it is to cast their vote. 
    I’m not going to go beyond that, but I think the president has been very clear about that. 
    Q    But you don’t — should we talk about schedules or something?  (Laughs.)
    MS. JEAN-PIERRE:  Yeah.
    Q    Is there, like, a big sort of — because he’s done these types of addresses on issues like this before. 
    MS. JEAN-PIERRE:  Yeah, I —
    Q    So, I’m just curious if, like, this is a time that he would do that.
    MS. JEAN-PIERRE:  Oh, no, I hear you.  And I hear you’re talking about the moment that we’re in and if the president is going to speak about it in a more formal way — in remarks, in a speech. 
    I don’t have anything to share with you, but he’s been very clear about having the confidence in our institutions, and so I’ll leave it there.
    Go ahead.
    Q    I just want to ask you briefly about congressional outreach for the $10 billion that would be military aid.  Has the White House started that process, reaching out to members of Congress to get their buy-in to kind of help expedite this process?
    MS. JEAN-PIERRE:  I mean, we’re in regular touch with congressional members about any type of initiative that we’re trying to push through, especially if it involves Congress, obviously.
    I don’t have anything to read out to you at this time, but we are in regular conversation about a myriad of things when it comes to legislation, things that we’re trying to push forward.  Again, certainly that is important to the American people.  I just don’t have anything to share at this time.
    Q    Just a quick —
    MS. JEAN-PIERRE:  Yeah.
    Q    — 2024 question.  You said the president is going to vote.  It’s a scheduling question.
    MS. JEAN-PIERRE:  Yeah. 
    Q    Will he vote ear- —
    MS. JEAN-PIERRE:  You guys are very into schedules today.
    Q    Yeah, we’re — we’re into this.  We’re into this.
    MS. JEAN-PIERRE:  Yeah, I know.  Into th- —
    Q    Will he vote early?  Early voting —
    MS. JEAN-PIERRE:  — into the POTUS schedule.
    Q    Early voting starts in Delaware, obviously, this week, and will he go early, before Election Day?
    MS. JEAN-PIERRE:  I — as — as soon as we have something to share, I will certainly share that.
    Q    Final try.
    MS. JEAN-PIERRE:  I — I appreciate the effort here.  The president — I can say for sure the president is looking forward to casting his ballot.  And when we have more to share about his schedule — I mean, we’re not — we’re — the president can’t not just go vote and not tel- — for you guys not to know, right?  So, you guys follow him wherever he is, which is good —
    Q    Thanks.
    MS. JEAN-PIERRE:  — which is a good thing.  (Laughs.)
    Go ahead.
    Q    Thanks, Karine.  The former president described the vice president as “lazy as hell” yesterday.  She had a day when she was not on the campaign trail.  I was going to give you an opportunity to respond to that.
    MS. JEAN-PIERRE:  I would check the source.  Pay real close attention to who’s saying that.  That’s all I’ll say.
    Q    Okay.  Another question about the vice president’s interview with NBC.  She talked — she was asked about whether there should be any concessions on the issue of abortion and the situation — 
    MS. JEAN-PIERRE:  Wait, say that one more time.
    Q    She was asked whether or not there should be concessions on the issue of abortion — the scenario being a potential divided government like we have now — whether or not she would be willing to offer concessions, things like religious freedom, on the issue of abortion.  And I wanted to see if —
    MS. JEAN-PIERRE:  Meaning like on- — once she’s in office? 
    Q    Yes.
    MS. JEAN-PIERRE:  Oh, look, I’m not going to — I’m not going to get into hypotheticals.  It’s not — that is something that certainly, you know, when she be — when she is in office and becomes pre- — and all of the things happen — I’m not going to get into hypotheticals — she’s going to make her own decisions and decide what’s best for the American people.  I can’t speak to that at this time.  Not going to get into hypotheticals. 
    What you know and what you have seen from this president and this vice president is their commitment to continue to fight for women’s rights and continue to call on Congress to — to — you know, to reinstate Roe v. Wade, make sure that legislation is put out there, voted on.  And so, he would sign that, obviously, if that were to happen. 
    And so, that is what they — he — they both have asked for.  That is what we’ve been saying during this administration.  And she has been, obviously, a passionate fighter on that issue, understanding what this means to women, understanding what this means to people’s rights and freedoms, and so has this president. 
    And so that’s what we’re — you’re going to continue to see.  You just — you just heard us — I forget all the days — all the days come together — recently talk about how we’re expanding in the ACA for contraception, because understanding how that — how important that is to women and families, or — or women and Americans who are trying to make decisions on their family or how to move forward, and they should have that right — and so — and that freedom.
    And so, again, that action shows you the commitment from the — and I hope the American people — from the Biden-Harris administration.
    What she’s going to do next, how she’s going to govern, that’s not for me to say.
    Q    Another question from the interview.  She was asked whether or not sexism would come into play in this election.  She said, “I don’t think of it that way.”  Obviously, the former president, Barack Obama, said that he did believe that sexism was coming into play in this election.  What does the president think about (inaudible)?
    MS. JEAN-PIERRE:  Oh, I’ll say this.  Clearly, the vice president spoke to this, and this is her campaign, and she sees — she’s going to say how she sees things. 
    The president has always said and will continue to say that she is ready to lead on day one.  And you don’t have to just look at her record with him as a critical partner over the last more than three and a half years as vice president, but as senator, as attorney general, as district attorney, she is someone that has always fought for Americans, fought for people, whether it is citizens in California or more broadly, obviously. 
    And I think that’s what the American people — I know that’s what the American people want to see.  They want to see a fighter.  And that’s what the president sees in her.
    And, again, just look at what we’ve been able to do in the more than three and a half years when it comes to trying to beat back COVID and make sure that we all could come together in this room again without masks and make sure there was a strategy to deal with this pandemic; turn the economy around because of this pandemic; make sure that, you know, schools were open, businesses were open.  Now we have a record number of people applying to open up small businesses. 
    They’re doing that because they believe that the economy is working for them.  Nobody wants to open a small business if they don’t think the economy is working — is — is working for them. 
    Now, there’s always a lot more work to be done, and we’re going to continue to do that work.  You saw what the president did with Senator Bernie Sanders in New Hampshire — in Concord, New Hampshire, answering and lay- — and laying out what the — what the Inflation Reduction Act has been able to do, saving people a billion dollars because of that Inflation Reduction Act — which, I may add, Republicans did not vote for.  They did not vote for it. 
    I know I have to get — I’m getting the pull here. 
    Go ahead, Jon. 
    Q    Thanks a lot, Karine.  What’s the level of concern that the administration has about election interference, specifically from Russia? 
    MS. JEAN-PIERRE:  I mean, we spoke to that.  We’ve laid out — we made an — an announcement on what we were seeing from Russia on election interference.  We sent a very clear message on that just a couple of weeks ago.  So, obviously, that is something that continues to be a concern.  We will speak loud and clear about that, as we did just a couple of weeks ago.
    But we also want Americans to know th- — to trust the institution, and that’s what the president is going to continue to say and — and — and also continue to lay out the stakes — what’s at stakes.
    Okay.  Thanks, everybody.  Hopefully, see you on the road.
    2:30 P.M. EDT

    MIL OSI USA News

  • MIL-OSI USA: Wyden, Colleagues Call on Feds to Prosecute Tax Prep Companies for Illegally Sharing Sensitive Personal and Financial Taxpayer Data

    US Senate News:

    Source: United States Senator Ron Wyden (D-Ore)

    October 23, 2024

    Lawmakers: “DOJ has the sole authority to enforce the criminal statute on behalf of the millions of taxpayers harmed by this unauthorized disclosure of their sensitive personal and financial data.”

    Washington D.C.— U.S. Senator Ron Wyden said today he has joined Senate and House colleagues to urge the Department of Justice to act against major tax preparation companies illegally sharing protected and sensitive taxpayer information with Big Tech firms. 

    “We write to urge you to investigate and prosecute the criminal behavior of major tax preparation companies identified in our investigation and confirmed by the Treasury Inspector General for Tax Administration and the Internal Revenue Service,” the lawmakers wrote.

    Last month, the U.S. Treasury Inspector General for Tax Administration released an audit report confirming that four online tax preparation companies broke the law by sharing legally protected and sensitive taxpayer information with Big Tech firms without taxpayer consent.  Specifically, the report found that consent statements being used by the tax prep companies did not clearly identify the intended use of taxpayer data, a violation of Treasury regulations. The IRS agreed with that assessment. 

    “The penalties for knowingly or recklessly disclosing or using tax return information include up to 1 year in prison, and penalties of up to $1000 per violation. DOJ has the sole authority to enforce the criminal statute on behalf of the millions of taxpayers harmed by this unauthorized disclosure of their sensitive personal and financial data,” the lawmakers continued.

    Tax prep companies used pixels, computer code that tracks a user’s website activity, to obtain sensitive personal and financial information, including approximate income and refund amounts, for millions of taxpayers who filed their taxes online with these companies. Meta then used that information for advertising and to train its AI algorithm. 

    The U.S. Treasury Inspector General for Tax Administration conducted a detailed review of four tax preparation companies, and found the companies did not obtain proper taxpayer consent for the release of their information. 

    “Accountability for these tax preparation companies – who disclosed millions of taxpayers’ tax return data…is essential for protecting the rule of law and the privacy of taxpayers,” concluded the lawmakers. 

    The IRS recently announced the expansion of the highly successful Direct File program to 24 total states, including Oregon – making 30 million taxpayers eligible to file for free, securely, and directly with the IRS. However, many taxpayers still rely on private tax prep companies. 

    The letter was led by U.S. Senator Elizabeth Warren (D-Mass.). Along with Wyden, the letter was also signed by Senator Richard Blumenthal (D-Conn.) and U.S. House Representative Katie Porter (D-Calif.).

    The full text of the letter is here.

    MIL OSI USA News

  • MIL-OSI New Zealand: Business – Voluntas Elevate, New Advisory Firm Targets Underserved Tech Founders

    Source: Voluntas Group

    Give us the tired, the distressed, the huddled founders yearning to break free, the glorious refuse of traditional venture capitalists.

    AUCKLAND – 24 October 2024 – Voluntas Group is launching Voluntas Elevate, a strategic advisory firm that targets underserved tech founders. Voluntas Elevate is designed for early-stage founders, those with momentum and ready to scale, and those stalled between growth phases.

    Voluntas Elevate’s core services are designed for growth and scaling, planning and governance, capital acquisition, and talent development and acquisition. The company already boasts 12 clients and holds an equity stake in three. While its core purpose is advisory services, it also helps raise capital for those within the Voluntas ecosystem. It’s currently raising NZ$11.3m for nine clients with an average raise of $1.25m.

    Voluntas Elevate founding partner, Jason Holdsworth, and partner, Darren Ward.

    “Not every opportunity must be a 10x or 100x unicorn. Our mission is to elevate tech founders who have struggled to access the support they need through the traditional venture capital model. There are a lot of good businesses that are simply overlooked because they may “only” demonstrate triple annual recurring revenue – that’s still a good sustainable business that can potentially scale rapidly,” says Jason Holdsworth, Founding Partner, Voluntas Group.

    Many tech founders face hurdles in accessing capital and the strategic support necessary to achieve long-term growth and value. Voluntas Elevate recognises this gap and bridges it with comprehensive services and a global network, helping founders to strategically build and expand their businesses.

    Voluntas Elevate is committed to fostering innovation and entrepreneurship, and is dedicated to empowering founders. These are people who tend to fall through the cracks of traditional VC models because they are struggling to manage growth or don’t have an existing track record of entrepreneurial success. Voluntas Elevate is here to provide these founders with an ecosystem of expertise, technology, and capital that propels growth and entry to global markets.

    Voluntas Elevate is an international network with offices in Auckland, Sydney, Hong Kong, London, and Los Angeles. Using this network and its ecosystem of talent, Voluntas Elevate is launching with an advisory and investment network that includes:

    Anthony Quirk
    Naomi Ballantyne
    John Catarinich
    Brett Roberts
    Brett O’Riley
    David Ding
    Nikolai Elmqvist
    Anthony McNamara

    Globally, Voluntas Elevate plans to onboard about 70 clients and generate over $15m in capital raised for clients in the next financial year, while generating an additional $7 million in revenue for them.

    “We take a holistic approach to supporting founders, starting with strategy execution, sales enablement, talent development, and when required, funding acquisition. The firm is deeply rooted in its core purpose of uplifting founders who may not fit the traditional VC mould. With Voluntas Elevate, founders receive the necessary guidance and resources to achieve rapid, sustainable growth,” says Darren Ward, Partner, Voluntas Group.

    Overcoming the Founders’ Dilemma
    Many entrepreneurs face the “Founders’ Dilemma”. They sacrifice equity early and are left to spend funds on consultancy services that don’t offer the strategic and operational support they need. This model frequently leaves founders with less of their company, less operational capital, and without a roadmap to capitalise on their potential.

    “Voluntas Elevate solves this dilemma by partnering with founders to take a long-term, holistic view of their journey. We place their aspirations at the forefront and minimise the outflow of equity. The firm helps them navigate crucial stages of growth, ensuring that equity is preserved and value is maximised. For our strategic advisory clients, we never seek more than a 10% stake in any venture we support,” adds Darren.

    About Voluntas Elevate
    Voluntas Elevate is a strategic advisory firm dedicated to elevating tech founders who have not found the necessary support within the traditional VC model. With a focus on growth and scaling, planning and governance, capital acquisition, and talent development and acquisition, Voluntas Elevate partners with founders globally to achieve sustainable growth and long-term value. The firm is part of the Voluntas Group, which combines philanthropy, technology, and strategic support to create positive impact across individuals and communities. For more information, visit www.voluntaselevate.com.

    MIL OSI New Zealand News

  • MIL-OSI Australia: SYD elevates international dining with contemporary mix of brands

    Source: Sydney Airport

    Thursday 24 October 2024

    Sydney Airport is excited to welcome new food and beverage brands at the T1 International terminal – EARL, BARista, East x West, and Sydney Coffee Trader offering travellers an array of high-quality dining options.

    Launching in December 2024, EARL – renowned as ‘the best in the sandwich-making business’ will bring its premium fast-casual dining experience to Sydney’s international stage.

    With dozens of sandwiches in their repertoire, alongside exclusive new combinations crafted for a Sydney-centric experience, passengers can also enjoy speciality beverages from EARL’s signature brew taps, featuring seasonal drinks like yuzu-spiked cold brew and matcha oat lattes.

    Founded 15 years ago in Melbourne by former Sydneysiders Simon O’Regan and Jackie Middleton, EARL marks a return to the city where their hospitality careers began. “Sydney has always been our ‘fun town’, a place we love to visit and enjoy with friends and family, said Simon and Jackie.

    “Opening EARL at Sydney Airport feels like a significant milestone in our journey, blending our passion for premium dining with a truly global audience.”

    The established and much-loved EARL is known for its focus on quality and sustainability, aligning perfectly with Sydney Airport’s commitment to providing exceptional and responsible dining options.

    Mark Zaouk, Group Executive Commercial at Sydney Airport, said: “We are continually innovating our food and beverage options to meet changing consumer tastes, elevating our wellbeing offering while keeping true to the fast-paced environment of our dining precincts.

    “The introduction of these new brands reflects our commitment to enhancing the passenger experience and offering a diverse and dynamic range of dining choices. We are excited to see how BARista, EARL, East x West and Sydney Coffee Trader will contribute to making Sydney Airport a destination in itself.”

    BARista will open its doors later in the month, offering international travellers a premium coffee experience alongside a selection of standout gourmet dishes including the Benedict Croissant, a signature cheeseburger and flavourful Katsu Sando (crispy chicken sandwich).

    For those after a quick bite before their flight, classic favourites like the BLT and bacon and egg roll will also be available, while the Hokkaido Tarts will delight anyone with a sweet tooth. Whether you’re after a caffeine fix or a hearty meal, BARista promises a fresh and satisfying dining experience.

    East x West, which is also set to open later this year, will offer a vibrant fusion of East Asian and Western culinary influences, perfectly reflecting its name. The venue will hero Ramen dishes accompanied by a sumptuous selection of spring rolls, dumplings, and handmade bao.

    Passengers looking for something lighter can enjoy crunchy lotus chips and edamame paired perfectly with Sapporo Premium Black on tap, a rare find in Australia and exclusive to the East x West brand. Adding to the unique experience, East x West will feature a dedicated mixologist crafting expertly made cocktails, along with a curated menu of Japanese whiskies and fine wines.

    Sydney Coffee Trader located within the bustling T1 International arrivals hall will showcase exceptional coffee in partnership with Seven Miles Coffee Roasters – a welcome sight for weary travellers. The menu highlights gourmet bagels loaded with fillings and oversized sandwiches complemented by freshly made salads and chia puddings. Whether travellers need a coffee pick-me-up or a wholesome meal, Sydney Coffee Trader offers the perfect blend of quality and convenience.

    “As a local roaster, we’re excited to be partnering with Sydney Coffee Trader in showcasing our city’s vibrant coffee culture. I think this venue perfectly combines a distinctive menu of locally sourced flavours with a unique coffee experience that travellers and guests are going to love,” says James Bailey, General Manager of Seven Miles Coffee Roasters.

    The new food offerings have been developed in partnership with Emirates Leisure Retail, who recently unveiled Gusto in the T1 International dining precinct which offers passengers a contemporary take on traditional Italian fare.

    Emirates Leisure Retail also expressed their enthusiasm about expanding their partnership with Sydney Airport.

    Davina Connell, Regional Director and General Manager ANZ Emirates Leisure Retail stated, “We are thrilled to build on our strong partnership with Sydney Airport as these diverse dining options are set to elevate the airport experience to new levels.

    “Whether you’re a coffee connoisseur in search of a smooth brew to rival your favourite local café, or ready to unwind with high-street-quality Asian-inspired dishes or a quick bite, there is something to satisfy every craving.

    “These new food brands represent a significant step forward in enhancing the airport’s culinary landscape, and we look forward to unveiling them in the coming months.”

    Images of new dining options at Sydney Airport can be found here.

    Notes to editor

    Menu highlights

    EARL – located in the T1 food court before security

    Handmade sandwiches and salads

    • The Pork Belly – free-range pork belly, apple, fennel and kale coleslaw
    • Harissa Lamb – slow cooked harissa rubbed lamb, quince, herb yoghurt, green beans and almonds
    • Mushroom and Ricotta – roast field mushrooms, ricotta, EARL salsa verde, chestnuts and rocket
    • Sydney-exclusive sandwich combinations
    • Signature brew taps with seasonal drinks such as yuzu-spiked cold brew, matcha oat lattes and Single Origin batch brews

    East x West – located in the T1 food court before security

    • Ramen
    • Handmade Bao
    • Spring Rolls
    • Dumplings
    • Crunchy Lotus Chips and Edamame
    • Sapporo Premium Black on tap along with other favourites
    • Japanese whiskies, fine wines and expertly crafted cocktails prepared by an in-house mixologist

    Sydney Coffee Trader – located in T1 Arrivals

    • Freshly brewed coffee
    • Loaded gourmet bagels
    • Oversized sandwiches
    • Fresh, healthy salads
    • Chia puddings

    BARista – located beyond security

    • Gourmet dishes from breakfast to classic favourites
    • Benedict Croissant
    • Katsu Sando (Chicken Sandwich)
    • BLT
    • Bacon and Egg Roll
    • Pastries including Hokkaido Tart
    • Specialty coffee

    MIL OSI News